Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

23. Revenues

Disaggregated Revenue by Product Line and Geographic Region

The following tables disaggregate our revenues from contracts with customers by major product line and geographic region. Equipment revenues recognized under ASC 842 was $12 million in the Successor Period, $284 million in the Predecessor Period and $337 million in the year ended December 31, 2018, which are included in the tables below.

	Successor
	Period from December 14, 2019 through December 31, 2019
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total Revenues
Product Lines:
Production	$	56	$	26	$	82
Completions	22		44		66
Drilling and Evaluation	21		36		57
Well Construction	22		34		56
Total	$	121	$	140	$	261

	Predecessor
	Period from January 1, 2019 to December 13, 2019
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total Revenues
Product Lines:
Production	$	1,132	$	339	$	1,471
Completions	468		652		1,120
Drilling and Evaluation	498		695		1,193
Well Construction	522		648		1,170
Total	$	2,620	$	2,334	$	4,954

	Predecessor
	Year Ended December 31, 2018
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total Revenues
Product Lines:
Production	$	1,195	$	364	$	1,559
Completions	610		604		1,214
Drilling and Evaluation	647		778		1,425
Well Construction	611		935		1,546
Total	$	3,063	$	2,681	$	5,744

	Predecessor
	Year Ended December 31, 2017
(Dollars in millions)	Western Hemisphere		Eastern Hemisphere		Total Revenues
Product Lines:
Production	$	1,085	$	380	$	1,465
Completions	641		624		1,265
Drilling and Evaluation	623		767		1,390
Well Construction	588		991		1,579
Total	$	2,937	$	2,762	$	5,699

Revenues by Geographic Regions

Revenue by geographic area is summarized below. Revenues from customers in Ireland were nil in each of the years presented. 

	Successor		Predecessor
	Period From		Period From
	12/14/19		01/01/19		Years Ended
	through		through		December 31,
(Dollars in millions)	12/31/19		12/13/19		2018		2017
Geographic Areas:
North America	$	68	$	1,548	$	1,987	$	2,047
Latin America	53		1,072		1,076		890
Western Hemisphere	121		2,620		3,063		2,937
Middle East & North Africa and Asia	88		1,427		1,716		1,755
Europe/Sub-Sahara Africa/Russia	52		907		965		1,007
Eastern Hemisphere	140		2,334		2,681		2,762
Total Revenues	$	261	$	4,954	$	5,744	$	5,699

Total revenues in the United States, part of our Western Hemisphere segment, were $59 million in the Successor Period and $1.3 billion in the Predecessor Period and $1.6 billion and $1.6 billion for the years ended December 31, 2018 and 2017, respectively.

Contract Balances

Receivables for products and services with customers are included in “Accounts Receivable, Net,” contract assets are included in “Other Current Assets” and contract liabilities are included in “Other Current Liabilities” on our Consolidated Balance Sheets. The following table provides information about receivables for product and services included in “Accounts Receivable, Net” at December 31, 2019 and 2018, respectively:

	Successor		Predecessor
(Dollars in millions)	December 31, 2019		December 31, 2018
Receivables for Product and Services in Accounts Receivable, Net	$	1,089	$	1,051

Significant changes in the contract assets and liabilities balances during the period are as follows:

(Dollars in millions)	Contract Assets			Contract Liabilities
Balance at December 31, 2018 (Predecessor)	$	4		$	64
Revenue recognized that was included in the deferred revenue balance at the beginning of the   period	—			(61		)
Increase due to cash received, net of amount recognized as revenue during the period	—			21
Increase due to revenue recognized during the period but contingent on future performance	9			—
Transferred to receivables from contract assets recognized at the beginning of the period	(2		)	—
Transferred to receivables from contract assets recognized during the period	(8		)	—
Adjustments due to changes in estimates or contract modifications	—			9
Adjustments due to Fresh Start Accounting	—			(29		)
Balance at December 13, 2019 (Successor)	3			4
Increase due to cash received, net of amount recognized as revenue during the period	—			8
Balance at December 31, 2019 (Successor)	$	3		$	12

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In the following table, estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially unsatisfied as of December 31, 2019 primarily relate to subsea services and an artificial lift contract. All consideration from contracts with customers is included in the amounts presented below.

(Dollars in millions)	2020		2021		2022		2023		Thereafter		Total
Service revenue	$	48	$	17	$	16	$	16	$	4	$	101

Venezuela Revenue Recognition

In the second quarter of 2017, we changed the accounting for revenue with our primary customer in Venezuela to record a discount reflecting the time value of money and accrete the discount as interest income over the expected collection period using the effective interest method. In the fourth quarter of 2017, we changed the accounting for revenue with substantially all of our customers in Venezuela due to the downgrade of the country’s bonds by certain credit agencies, continued significant political and economic turmoil and continued economic sanctions around certain financing transactions imposed by the U.S. government. In connection with this development, we recorded a charge of $230 million to fully reserve our receivables for these customers in Venezuela. We continue to monitor our Venezuelan operations and will actively pursue the collection of our outstanding invoices. During 2018, we collected $16 million on previously fully reserved accounts receivable.