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Revenue | 6 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue | 6. 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 table below, North America includes only the U.S. and Canada:
|  | Three Months Ended |
|  | June 30, |
|  | 2025 |  |  | 2024 |
|  | Energy |  |  |  |  |  |  |  |  |  |  |  | Energy |  |  |  |  |  |  |  |  |  |
|  | Products |  |  | Energy |  |  |  |  |  |  |  |  | Products |  |  | Energy |  |  |  |  |  |  |
|  | and Services |  |  | Equipment |  |  | Eliminations |  |  | Total |  |  | and Services |  |  | Equipment |  |  | Eliminations |  |  | Total |
North America |  | $ | 570 |  |  | $ | 271 |  |  | $ | — |  |  | $ | 841 |  |  | $ | 534 |  |  | $ | 301 |  |  | $ | — |  |  | $ | 835 |
International |  |  | 428 |  |  |  | 919 |  |  |  | — |  |  |  | 1,347 |  |  |  | 493 |  |  |  | 888 |  |  |  | — |  |  |  | 1,381 |
Intersegment revenue |  |  | 27 |  |  |  | 17 |  |  |  | (44 | ) |  |  | — |  |  |  | 23 |  |  |  | 15 |  |  |  | (38 | ) |  |  | — |
|  | $ | 1,025 |  |  | $ | 1,207 |  |  | $ | (44 | ) |  | $ | 2,188 |  |  | $ | 1,050 |  |  | $ | 1,204 |  |  | $ | (38 | ) |  | $ | 2,216 |
Land |  | $ | 737 |  |  | $ | 418 |  |  | $ | — |  |  | $ | 1,155 |  |  | $ | 777 |  |  | $ | 460 |  |  | $ | — |  |  | $ | 1,237 |
Offshore |  |  | 261 |  |  |  | 772 |  |  |  | — |  |  |  | 1,033 |  |  |  | 250 |  |  |  | 729 |  |  |  | — |  |  |  | 979 |
Intersegment revenue |  |  | 27 |  |  |  | 17 |  |  |  | (44 | ) |  |  | — |  |  |  | 23 |  |  |  | 15 |  |  |  | (38 | ) |  |  | — |
|  | $ | 1,025 |  |  | $ | 1,207 |  |  | $ | (44 | ) |  | $ | 2,188 |  |  | $ | 1,050 |  |  | $ | 1,204 |  |  | $ | (38 | ) |  | $ | 2,216 |
|  | Six Months Ended |
|  | June 30, |
|  | 2025 |  |  | 2024 |
|  | Energy |  |  |  |  |  |  |  |  |  |  |  | Energy |  |  |  |  |  |  |  |  |  |
|  | Products |  |  | Energy |  |  |  |  |  |  |  |  | Products |  |  | Energy |  |  |  |  |  |  |
|  | and Services |  |  | Equipment |  |  | Elims. |  |  | Total |  |  | and Services |  |  | Equipment |  |  | Elims. |  |  | Total |
North America |  | $ | 1,121 |  |  | $ | 532 |  |  | $ | — |  |  | $ | 1,653 |  |  | $ | 1,071 |  |  | $ | 597 |  |  | $ | — |  |  | $ | 1,668 |
International |  |  | 848 |  |  |  | 1,790 |  |  |  | — |  |  |  | 2,638 |  |  |  | 949 |  |  |  | 1,754 |  |  |  | — |  |  |  | 2,703 |
Intersegment revenue |  |  | 48 |  |  |  | 31 |  |  |  | (79 | ) |  |  | — |  |  |  | 47 |  |  |  | 31 |  |  |  | (78 | ) |  |  | — |
|  | $ | 2,017 |  |  | $ | 2,353 |  |  | $ | (79 | ) |  | $ | 4,291 |  |  | $ | 2,067 |  |  | $ | 2,382 |  |  | $ | (78 | ) |  | $ | 4,371 |
Land |  | $ | 1,492 |  |  | $ | 819 |  |  | $ | — |  |  | $ | 2,311 |  |  | $ | 1,549 |  |  | $ | 887 |  |  | $ | — |  |  | $ | 2,436 |
Offshore |  |  | 477 |  |  |  | 1,503 |  |  |  | — |  |  |  | 1,980 |  |  |  | 471 |  |  |  | 1,464 |  |  |  | — |  |  |  | 1,935 |
Intersegment revenue |  |  | 48 |  |  |  | 31 |  |  |  | (79 | ) |  |  | — |  |  |  | 47 |  |  |  | 31 |  |  |  | (78 | ) |  |  | — |
|  | $ | 2,017 |  |  | $ | 2,353 |  |  | $ | (79 | ) |  | $ | 4,291 |  |  | $ | 2,067 |  |  | $ | 2,382 |  |  | $ | (78 | ) |  | $ | 4,371 |
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.
|  | Three Months Ended |
|  | June 30, |
|  | 2025 |  |  | 2024 |
Energy Products and Services: |  |  |  |  |  |
Services & rental |  | $ | 501 |  |  | $ | 498 |
Capital equipment |  |  | 335 |  |  |  | 326 |
Product sales |  |  | 162 |  |  |  | 203 |
Intersegment revenue |  |  | 27 |  |  |  | 23 |
Total |  |  | 1,025 |  |  |  | 1,050 |
Energy Equipment: |  |  |  |  |  |
Capital equipment |  |  | 733 |  |  |  | 641 |
Aftermarket |  |  | 457 |  |  |  | 548 |
Intersegment revenue |  |  | 17 |  |  |  | 15 |
Total |  |  | 1,207 |  |  |  | 1,204 |
Eliminations |  |  | (44 | ) |  |  | (38 | )
Total consolidated |  | $ | 2,188 |  |  | $ | 2,216 |
|  | Six Months Ended |
|  | June 30, |
|  | 2025 |  |  | 2024 |
Energy Products and Services: |  |  |  |  |  |
Services & rental |  | $ | 1,008 |  |  | $ | 984 |
Capital equipment |  |  | 623 |  |  |  | 630 |
Product sales |  |  | 338 |  |  |  | 406 |
Intersegment revenue |  |  | 48 |  |  |  | 47 |
Total |  |  | 2,017 |  |  |  | 2,067 |
Energy Equipment: |  |  |  |  |  |
Capital equipment |  |  | 1,374 |  |  |  | 1,250 |
Aftermarket |  |  | 948 |  |  |  | 1,101 |
Intersegment revenue |  |  | 31 |  |  |  | 31 |
Total |  |  | 2,353 |  |  |  | 2,382 |
Eliminations |  |  | (79 | ) |  |  | (78 | )
Total consolidated |  | $ | 4,291 |  |  | $ | 4,371 |
Performance Obligations Net revenue recognized from performance obligations satisfied in previous periods was $102 million for the six months ended June 30, 2025 primarily due to change orders. Remaining performance obligations represent the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more. We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less. As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,675 million. Although numerous factors can affect timing of revenue recognized on performance obligations, such as customer change orders and supplier accelerations or delays, the Company expects to recognize approximately $1,043 million in revenue for the remaining performance obligations in the remainder of 2025, $1,535 million in 2026, $665 million in 2027, and $1,432 million thereafter. 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. Contract liabilities consist of customer billings in excess of revenue recognized under over-time contracts, customer advance payments 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, 2024 |  | $ | 577 |  |  | $ | 492 |
Billings |  |  | (820 | ) |  |  | 750 |
Revenue recognized |  |  | 869 |  |  |  | (745 | )
Currency translation adjustments and other |  |  | 29 |  |  |  | 16 |
Balance at June 30, 2025 |  | $ | 655 |  |  | $ | 513 |
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 $19 million and $38 million for the three and six months ended June 30, 2025, and $17 million and $33 million for the three and six months ended June 30, 2024. 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 June 30, 2025, the receivables of $139 million, net of allowances of $44 million for credit losses and $11 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. See Note 15 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. The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers. As of June 30, 2025, the allowance for credit losses totaled $68 million. The changes in the carrying amount of the allowance for credit losses are as follows (in millions):
Balance at December 31, 2024 |  | $ | 67 |
Provision for expected credit losses |  |  | 33 |
Recoveries collected |  |  | (8 | )
Reclass for long-term receivables |  |  | (18 | )
Write-offs |  |  | (3 | )
Other |  |  | (3 | )
Balance at June 30, 2025 |  | $ | 68 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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