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Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

14. Revenue

Disaggregation of Revenue

 

The following tables disaggregate our revenue by destinations and revenue streams, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors (in millions).

In the tables below, North America includes only the U.S. and Canada:

 

 

Year Ended December 31, 2024

 

 

 

Energy Products

 

 

Energy

 

 

 

 

 

 

 

 

 

and Solutions

 

 

Equipment

 

 

Eliminations

 

 

Total

 

North America

 

$

2,105

 

 

$

1,201

 

 

$

—

 

 

$

3,306

 

International

 

 

1,935

 

 

 

3,629

 

 

 

—

 

 

 

5,564

 

Intersegment revenue

 

 

90

 

 

 

58

 

 

 

(148

)

 

 

—

 

 

$

4,130

 

 

$

4,888

 

 

$

(148

)

 

$

8,870

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

3,088

 

 

$

1,800

 

 

$

—

 

 

$

4,888

 

Offshore

 

 

952

 

 

 

3,030

 

 

 

—

 

 

 

3,982

 

Intersegment revenue

 

 

90

 

 

 

58

 

 

 

(148

)

 

 

—

 

 

$

4,130

 

 

$

4,888

 

 

$

(148

)

 

$

8,870

 

 

 

 

Year Ended December 31, 2023

 

 

 

Energy Products

 

 

Energy

 

 

 

 

 

 

 

 

 

and Solutions

 

 

Equipment

 

 

Eliminations

 

 

Total

 

North America

 

$

2,019

 

 

$

1,237

 

 

$

—

 

 

$

3,256

 

International

 

 

1,954

 

 

 

3,373

 

 

 

—

 

 

 

5,327

 

Intersegment revenue

 

 

104

 

 

 

59

 

 

 

(163

)

 

 

—

 

 

$

4,077

 

 

$

4,669

 

 

$

(163

)

 

$

8,583

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

2,921

 

 

$

1,864

 

 

$

—

 

 

$

4,785

 

Offshore

 

 

1,052

 

 

 

2,746

 

 

 

—

 

 

 

3,798

 

Intersegment revenue

 

 

104

 

 

 

59

 

 

 

(163

)

 

 

—

 

 

$

4,077

 

 

$

4,669

 

 

$

(163

)

 

$

8,583

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

Energy Products

 

 

Energy

 

 

 

 

 

 

 

 

 

and Solutions

 

 

Equipment

 

 

Eliminations

 

 

Total

 

North America

 

$

1,845

 

 

$

1,034

 

 

$

—

 

 

$

2,879

 

International

 

 

1,629

 

 

 

2,729

 

 

 

—

 

 

 

4,358

 

Eliminations

 

 

63

 

 

 

56

 

 

 

(119

)

 

 

—

 

 

$

3,537

 

 

$

3,819

 

 

$

(119

)

 

$

7,237

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

2,620

 

 

$

1,527

 

 

$

—

 

 

$

4,147

 

Offshore

 

 

854

 

 

 

2,236

 

 

 

—

 

 

 

3,090

 

Eliminations

 

 

63

 

 

 

56

 

 

 

(119

)

 

 

—

 

 

$

3,537

 

 

$

3,819

 

 

$

(119

)

 

$

7,237

 

In the table below, the revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products. The revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services.

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Energy Products and Services:

 

 

 

 

 

 

 

 

   Services & rental

$

1,996

 

 

$

1,959

 

 

$

1,740

 

   Capital equipment

 

1,238

 

 

 

1,336

 

 

 

1,148

 

   Product sales

 

806

 

 

 

678

 

 

 

586

 

   Intersegment revenue

 

90

 

 

 

104

 

 

 

63

 

      Total

 

4,130

 

 

 

4,077

 

 

 

3,537

 

 

 

 

 

 

 

 

 

Energy Equipment:

 

 

 

 

 

 

 

 

   Capital equipment

 

2,625

 

 

 

2,556

 

 

 

2,173

 

   Aftermarket

 

2,205

 

 

 

2,054

 

 

 

1,590

 

   Intersegment revenue

 

58

 

 

 

59

 

 

 

56

 

      Total

 

4,888

 

 

 

4,669

 

 

 

3,819

 

 

 

 

 

 

 

 

 

Eliminations

 

(148

)

 

 

(163

)

 

 

(119

)

 

 

 

 

 

 

 

 

         Total consolidated

$

8,870

 

 

$

8,583

 

 

$

7,237

 

The Company did not have any customers with revenues greater than 10% of total revenue for the years ended December 31, 2024, 2023, or 2022.

Contract Assets and Liabilities

Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time. There were no impairment losses recorded on contract assets for the years ending December 31, 2024, 2023 and 2022.

Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue.

The changes in the carrying amount of contract assets and contract liabilities are as follows (in millions):

 

 

Contract
Assets

 

 

Contract
Liabilities

 

Balance at December 31, 2023

 

$

739

 

 

$

532

 

Billings

 

 

(1,553

)

 

 

1,261

 

Revenue recognized

 

 

1,490

 

 

 

(1,247

)

Currency translation adjustments and other

 

 

(99

)

 

 

(54

)

Balance at December 31, 2024

 

$

577

 

 

$

492

 

 

Royalty Revenue

The Company recognizes royalty revenue due under various licenses for the Company’s intellectual property, including for technology related to drill bits. The Company recognized revenue for drill bit licenses of approximately $67 million, $78 million, and $80 million for years ended December 31, 2024, 2023, and 2022, respectively. The Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. As such, revenue and the related receivables are recorded at a discount to reflect the delayed timing of future cash collections. As of December 31, 2024, the receivables of $121 million, net of allowances of $26 million for credit losses and $14 million for the remaining timing related discount, are included in Other Assets on the Consolidated Balance Sheets. These allowances do not impact the amount the Company is entitled to recover on its claims from the licensees in litigation. While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the credit quality of the receivables in accordance with the policy described in Note 2. See Note 12 to the Consolidated Financial Statements for discussion of the ongoing litigation.

Allowance for Credit Losses

The Company estimates its allowance for credit losses using information about past events, current conditions and risk characteristics of each customer, and reasonable and supportable forecasts relevant to assessing risk associated with the collectability of receivables and contract assets. See Note 2 to the Consolidated Financial Statements for discussion of credit risk. As of December 31, 2024, the allowance for credit losses totaled $67 million.

The changes in the carrying amount of the allowance for credit losses are as follows (in millions):

Balance at December 31, 2023

 

$

72

 

Provision for expected credit losses

 

 

40

 

Recoveries collected

 

 

(13

)

Reclass for long-term receivables

 

 

(17

)

Writeoffs

 

 

(13

)

Other

 

 

(2

)

Balance at December 31, 2024

 

$

67