XML 26 R16.htm IDEA: XBRL DOCUMENT v3.25.3
Revenue
 9 Months Ended
Sep. 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

 

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

 

and Services

 

 

Equipment

 

 

Eliminations

 

 

Total

 

 

and Services

 

 

Equipment

 

 

Eliminations

 

 

Total

 

North America

 

$

537

 

 

$

275

 

 

$

—

 

 

$

812

 

 

$

502

 

 

$

319

 

 

$

—

 

 

$

821

 

International

 

 

409

 

 

 

955

 

 

 

—

 

 

 

1,364

 

 

 

483

 

 

 

887

 

 

 

—

 

 

 

1,370

 

Intersegment revenue

 

 

25

 

 

 

17

 

 

 

(42

)

 

 

—

 

 

 

18

 

 

 

13

 

 

 

(31

)

 

 

—

 

 

$

971

 

 

$

1,247

 

 

$

(42

)

 

$

2,176

 

 

$

1,003

 

 

$

1,219

 

 

$

(31

)

 

$

2,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

700

 

 

$

379

 

 

$

—

 

 

$

1,079

 

 

$

761

 

 

$

436

 

 

$

—

 

 

$

1,197

 

Offshore

 

 

246

 

 

 

851

 

 

 

—

 

 

 

1,097

 

 

 

224

 

 

 

770

 

 

 

—

 

 

 

994

 

Intersegment revenue

 

 

25

 

 

 

17

 

 

 

(42

)

 

 

—

 

 

 

18

 

 

 

13

 

 

 

(31

)

 

 

—

 

 

$

971

 

 

$

1,247

 

 

$

(42

)

 

$

2,176

 

 

$

1,003

 

 

$

1,219

 

 

$

(31

)

 

$

2,191

 

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

Energy

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

Products

 

 

Energy

 

 

 

 

 

 

 

 

and Services

 

 

Equipment

 

 

Elims.

 

 

Total

 

 

and Services

 

 

Equipment

 

 

Elims.

 

 

Total

 

North America

 

$

1,658

 

 

$

807

 

 

$

—

 

 

$

2,465

 

 

$

1,573

 

 

$

916

 

 

$

—

 

 

$

2,489

 

International

 

 

1,257

 

 

 

2,745

 

 

 

—

 

 

 

4,002

 

 

 

1,432

 

 

 

2,641

 

 

 

—

 

 

 

4,073

 

Intersegment revenue

 

 

73

 

 

 

48

 

 

 

(121

)

 

 

—

 

 

 

65

 

 

 

44

 

 

 

(109

)

 

 

—

 

 

$

2,988

 

 

$

3,600

 

 

$

(121

)

 

$

6,467

 

 

$

3,070

 

 

$

3,601

 

 

$

(109

)

 

$

6,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

2,192

 

 

$

1,198

 

 

$

—

 

 

$

3,390

 

 

$

2,310

 

 

$

1,323

 

 

$

—

 

 

$

3,633

 

Offshore

 

 

723

 

 

 

2,354

 

 

 

—

 

 

 

3,077

 

 

 

695

 

 

 

2,234

 

 

 

—

 

 

 

2,929

 

Intersegment revenue

 

 

73

 

 

 

48

 

 

 

(121

)

 

 

—

 

 

 

65

 

 

 

44

 

 

 

(109

)

 

 

—

 

 

$

2,988

 

 

$

3,600

 

 

$

(121

)

 

$

6,467

 

 

$

3,070

 

 

$

3,601

 

 

$

(109

)

 

$

6,562

 

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

 

 

 

September 30,

 

 

 

2025

 

 

2024

 

Energy Products and Services:

 

 

 

 

 

 

   Services & rental

 

$

485

 

 

$

507

 

   Capital equipment

 

 

293

 

 

 

280

 

   Product sales

 

 

168

 

 

 

198

 

   Intersegment revenue

 

 

25

 

 

 

18

 

      Total

 

 

971

 

 

 

1,003

 

 

 

 

Energy Equipment:

 

 

 

 

 

 

   Capital equipment

 

 

777

 

 

 

648

 

   Aftermarket

 

 

453

 

 

 

558

 

   Intersegment revenue

 

 

17

 

 

 

13

 

      Total

 

 

1,247

 

 

 

1,219

 

 

 

 

 

 

 

Eliminations

 

 

(42

)

 

 

(31

)

 

 

 

 

 

 

         Total consolidated

 

$

2,176

 

 

$

2,191

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2025

 

 

2024

 

Energy Products and Services:

 

 

 

 

 

 

   Services & rental

 

$

1,493

 

 

$

1,491

 

   Capital equipment

 

 

916

 

 

 

910

 

   Product sales

 

 

506

 

 

 

604

 

   Intersegment revenue

 

 

73

 

 

 

65

 

      Total

 

 

2,988

 

 

 

3,070

 

 

 

 

Energy Equipment:

 

 

 

 

 

 

   Capital equipment

 

 

2,151

 

 

 

1,898

 

   Aftermarket

 

 

1,401

 

 

 

1,659

 

   Intersegment revenue

 

 

48

 

 

 

44

 

      Total

 

 

3,600

 

 

 

3,601

 

 

 

 

 

 

 

Eliminations

 

 

(121

)

 

 

(109

)

 

 

 

 

 

 

         Total consolidated

 

$

6,467

 

 

$

6,562

 

 

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was not material for the nine months ended September 30, 2025.

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 September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $5,037 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 $544 million in revenue for the remaining performance obligations in the remainder of 2025, $1,796 million in 2026, $1,109 million in 2027, and $1,588 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

 

 

(1,360

)

 

 

1,212

 

Revenue recognized

 

 

1,335

 

 

 

(1,152

)

Currency translation adjustments and other

 

 

24

 

 

 

12

 

Balance at September 30, 2025

 

$

576

 

 

$

564

 

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 $57 million for the three and nine months ended September 30, 2025, and $17 million and $50 million for the three and nine months ended September 30, 2024, respectively. As previously disclosed, the Company is currently pursuing litigation against certain non-paying licensees, which will impact our ability to collect the receivables timely. During the third quarter of 2025, the Company recognized a non-cash discount charge of approximately $24 million to reflect the delayed timing of expected cash collection. As of September 30, 2025, royalty receivables of $129 million, net of related reserves of $78 million and the remaining timing related discount of $51 million, are included in Other assets on the Consolidated Balance Sheets. The reserves and discounts 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 collectibility of the receivables. Also see Note 15 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. 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 September 30, 2025, the allowance for credit losses on accounts receivable and contract assets 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

 

 

68

 

Recoveries collected

 

 

(13

)

Reclass for long-term receivables

 

 

(47

)

Write-offs

 

 

(5

)

Other

 

 

(2

)

Balance at September 30, 2025

 

$

68