Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

6.Revenue

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major geographic and market segment destination. In the table, North America includes the U.S. and Canada (in millions):

	Three Months Ended June 30,
	2022											2021
			Completion											Completion
	Wellbore		& Production		Rig							Wellbore		& Production		Rig
	Technologies		Solutions		Technologies		Elims.			Total		Technologies		Solutions		Technologies		Elims.			Total
North America	$	346	$	236	$	120	$	—		$	702	$	215	$	209	$	69	$	—		$	493
International		305		391		329		—			1,025		233		278		413		—			924
Eliminations		15		12		13		(40	)		—		15		10		5		(30	)		—
	$	666	$	639	$	462	$	(40	)	$	1,727	$	463	$	497	$	487	$	(30	)	$	1,417
Land	$	518	$	387	$	115	$	—		$	1,020	$	330	$	329	$	113	$	—		$	772
Offshore		133		240		334		—			707		118		158		369		—			645
Eliminations		15		12		13		(40	)		—		15		10		5		(30	)		—
	$	666	$	639	$	462	$	(40	)	$	1,727	$	463	$	497	$	487	$	(30	)	$	1,417

	Six Months Ended June 30,
	2022											2021
			Completion											Completion
	Wellbore		& Production		Rig							Wellbore		& Production		Rig
	Technologies		Solutions		Technologies		Elims.			Total		Technologies		Solutions		Technologies		Elims.			Total
North America	$	652	$	449	$	208	$	—		$	1,309	$	403	$	371	$	124	$	—		$	898
International		595		699		672		—			1,966		444		542		782		—			1,768
Intercompany		27		21		23		(71	)		—		29		23		12		(64	)		—
	$	1,274	$	1,169	$	903	$	(71	)	$	3,275	$	876	$	936	$	918	$	(64	)	$	2,666
Land	$	952	$	709	$	238	$	—		$	1,899	$	624	$	594	$	204	$	—		$	1,422
Offshore		295		439		642		—			1,376		223		319		702		—			1,244
Intercompany		27		21		23		(71	)		—		29		23		12		(64	)		—
	$	1,274	$	1,169	$	903	$	(71	)	$	3,275	$	876	$	936	$	918	$	(64	)	$	2,666

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was $3 million for the three months ended June 30, 2022 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, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,247 million. The Company expects to recognize approximately $678 million in revenue for the remaining performance obligations in 2022 and $3,569 million in 2023 and 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, 2021	$	461		$	392
Provision		(1	)		—
Billings		(512	)		600
Revenue recognized		521			(515	)
Currency translation adjustments and other		7			(22	)
Balance at June 30, 2022	$	476		$	455

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, 2022, the allowance for credit losses totaled $93 million.