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Revenues
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues
3 – 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 products and services 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.

Our Production and Intervention segment leases drilling tools, artificial lift pumping equipment and other unmanned equipment to customers as operating leases. 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 ASU No. 2016-02, Leases (Topic 842) were $31 million for the three months ended March 31, 2022 and $28 million for the three months ended March 31, 2021.

The following tables disaggregate our revenues from contracts with customers by geographic region and includes equipment rental revenues. North America in the table below consists of the U.S. and Canada.

Three Months Ended March 31,
(Dollars in millions)20222021
Revenues by Geographic Areas:
Middle East/North Africa/Asia$310 $267 
North America238 214 
Latin America227 176 
Europe/Sub-Sahara Africa/Russia163 175 
Total Revenues$938 $832 

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 Condensed Consolidated Balance Sheets. Contract assets are immaterial as of March 31, 2022 and December 31, 2021. Revenues recognized during the three months ended March 31, 2022 and 2021 that were included in the contract liabilities balance at the beginning of each year were $10 million and $18 million, respectively. The following table summarizes these balances as of March 31, 2022 and December 31, 2021:
(Dollars in millions)March 31, 2022December 31, 2021
Total Accounts Receivables$868 $825 
Receivables for Product and Services in Accounts Receivable, Net$835 $795 
Receivables for Equipment Rentals in Account Receivable, Net$33 $30 
Contract Liabilities in Other Current Liabilities$35 $26 
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 ASU 2014-09, Revenues from Contracts with Customers (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 March 31, 2022.
(Dollars in millions)2022202320242025ThereafterTotal
Service Revenue$52 $58 $59 $46 $20 $235