Revenues

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenues

5 – Revenues

Disaggregated Revenue

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenue is derived from short term contracts. Our services and products are generally sold based upon purchase orders, contracts or other legally enforceable arrangements with our customers that include fixed or determinable prices but do not generally include right of return provisions or other significant post-delivery obligations. For additional details on our revenue recognition policies see “Note 1 – Summary of Significant Accounting Policies”.

The unmanned equipment that we lease to customers as operating leases consists primarily of drilling rental tools and artificial lift pumping equipment (in the Production and Intervention reportable segment). 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. Equipment revenues recognized under Topic 842 was $131 million, $150 million and $12 million in 2021, 2020 and 2019 Successor Periods, respectively, and $284 million in the 2019 Predecessor Period.

The following tables disaggregate our revenues from contracts with customers by geographic region and includes equipment rental revenues. Revenues in the U.S. were $678 million, $720 million and $59 million in the 2021, 2020 and 2019 Successor Periods, respectively, and $1.3 billion in the 2019 Predecessor Period. We had no revenue in our country of domicile (Ireland) in the 2021, 2020 and 2019 Successor Periods, and the 2019 Predecessor Period. North America in the table below consists of the U.S. and Canada.

	Successor						Predecessor
					Period From		Period From
					12/14/2019		1/1/2019
	Year Ended		Year Ended		through		through
(Dollars in millions)	12/31/2021		12/31/2020		12/31/2019		12/13/2019
Revenues by Geographic Areas:
North America	$	896	$	889	$	68	1,548
Latin America	814		697		53		1,072
Europe/Sub-Sahara Africa/Russia	737		747		52		$	907
Middle East/North Africa/Asia	1,198		1,352		88		1,427
Total Revenues	$	3,645	$	3,685	$	261	$	4,954

Contract Balances

The timing of our revenue recognition, billings and cash collections results in the recording of billed and unbilled accounts receivable, contract assets, customer advances and deposits (contract liabilities classified as deferred revenues). Receivables 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. Contract assets are immaterial in all periods presented on our Consolidated Balance Sheets. Revenues recognized in the 2021 and 2020 Successor Periods were $32 million and $10 million, respectively and included in the contract liabilities balance at the beginning of each year. The following table summarizes these balances at December 31, 2021 and December 31, 2020:

(Dollars in millions)	12/31/2021		12/31/2020
Total Accounts Receivables, Net	$	825	$	826
Receivables for Product and Services in Accounts Receivable, Net	$	795	$	792
Receivables for Equipment Rentals in Account Receivable, Net	$	30	$	34
Contract Liabilities included in Other Current Liabilities	$	26	$	37

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 for contracts with original performance obligations greater than twelve months are expected to be recognized in the future related to performance obligations that are either unsatisfied or partially unsatisfied as of December 31, 2021.

(Dollars in millions)	2022		2023		2024		2025		Thereafter		Total
Service revenue	$	67	$	59	$	59	$	44	$	20	$	249