XML 44 R30.htm IDEA: XBRL DOCUMENT v3.20.4
Revenues
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenues
23. Revenues

Disaggregated Revenue by Product Line and Geographic Region

Revenues are attributable to countries based on the ultimate destination of the sale of products or performance of services. During the second quarter of 2020, in order to support the streamlining and realignment of the business, we combined our prior reported four product lines into two product lines, and all prior periods have been retrospectively recast to conform to this new presentation. Our two product lines are as follows: (1) Completion and Production and (2) Drilling, Evaluation and Intervention. The unmanned equipment that we lease to customers as operating leases consists primarily of drilling rental tools (in the Drilling, Evaluation and Intervention product line) and artificial lift pumping equipment (in the Completion and Production product line). These equipment rental revenues are generally provided based on call-out work orders that include fixed per unit prices and are derived from short-term contracts.

The following tables disaggregate our revenues from contracts with customers by major product line and geographic region and includes equipment rental revenues recognized under Accounting Standards Update No. 2016-02, Leases (Topic 842). Equipment revenues recognized was $150 million and $12 million in the 2020 and 2019 Successor Periods, respectively, and $284 million and $337 million in the 2019 and 2018 Predecessor Periods, respectively. Revenues in the U.S. were $720 million and $59 million in the 2020 and 2019 Successor Periods, respectively, and $1.3 billion and $1.6 billion in the 2019 and 2018 Predecessor Periods, respectively. We had no revenue in our country of domicile (Ireland) in the 2020 and 2019 Successor Periods, and the 2019 and 2018 Predecessor Periods.

SuccessorPredecessor
Period FromPeriod From
12/14/20191/1/2019
Year EndedthroughthroughYear Ended
(Dollars in millions)12/31/202012/31/201912/13/201912/31/2018
Product Line Revenue by Hemisphere:
  Completion and Production$859 $69 $1,357 $1,709 
  Drilling, Evaluation and Intervention727 52 1,263 1,354 
 Western Hemisphere$1,586 $121 $2,620 $3,063 
  Completion and Production$1,020 $67 $975 $965 
  Drilling, Evaluation and Intervention1,079 73 1,359 1,716 
 Eastern Hemisphere$2,099 $140 $2,334 $2,681 
Total Revenues$3,685 $261 $4,954 $5,744 

 SuccessorPredecessor
Period FromPeriod From
12/14/20191/1/2019
Year EndedthroughthroughYear Ended
(Dollars in millions)12/31/202012/31/201912/13/201912/31/2018
Revenue by Geographic Areas:
  North America$889 $68 $1,548 $1,987 
  Latin America697 53 1,072 1,076 
 Western Hemisphere $1,586 $121 $2,620 $3,063 
  Middle East & North Africa and Asia$1,352 $88 $1,427 $1,716 
  Europe/Sub-Sahara Africa/Russia747 52 907 965 
 Eastern Hemisphere $2,099 $140 $2,334 $2,681 
Total Revenues$3,685 $261 $4,954 $5,744 
Contract Balances

The following table provides information about receivables for product and services included in “Accounts Receivable, Net,” “Contract Assets” and “Contract Liabilities” on our Consolidated Balance Sheets at December 31, 2020 and December 31, 2019.
(Dollars in millions)12/31/202012/31/2019
Receivables for Product and Services in Accounts Receivable, Net$792 $1,156 
Receivables for Equipment Rentals in Account Receivable, Net$34 $85 
Contract Assets included in Other Current Assets$7 $3 
Contract Liabilities included in Other Current Liabilities$37 $12 

Revenue recognized for the year ended December 31, 2020 and 2019 that were included in the contract liabilities balance at the beginning of each year was $10 million and $61 million, respectively. The increase in contract liabilities was due to advance payments on new or amended contract awards. Included in the activity for 2019 was a fresh start adjustment of $29 million, which reduced contract liabilities.
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, 2020 primarily relate to subsea services contracts. All consideration from contracts with customers is included in the amounts presented below.
(Dollars in millions)2021202220232024ThereafterTotal
Service revenue$32 $37 $39 $40 $54 $202