Revenues

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues

3 – Revenue

Disaggregated Revenue

Revenue is 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 receive 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.

We lease drilling tools, artificial lift pumping equipment and other unmanned equipment to customers as operating leases. Equipment rental revenue is generally provided based on call-out work orders that include fixed per unit prices and derived from short-term contracts. Equipment rental revenue was $37 million and $109 million in the three and nine months ended September 30, 2023, respectively, and $43 million and $109 million for the three and nine months ended September 30, 2022, respectively.

The following table disaggregates our revenue from contracts with customers by geographic area and includes equipment rental revenue. North America in the table below consists of the U.S. and Canada.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2023		2022		2023		2022
Revenue by Geographic Areas:
Middle East/North Africa/Asia	$	471	$	354	$	1,268	$	1,014
North America	269		297		820		803
Latin America	357		280		1,045		772
Europe/Sub-Sahara Africa/Russia	216		189		640		533
Total Revenue	$	1,313	$	1,120	$	3,773	$	3,122

Contract Balances

The timing of our revenue recognition, billings and cash collections results in the recording of accounts receivable, contract assets, and contract liabilities. The following table summarizes these balances as of September 30, 2023 and December 31, 2022:

(Dollars in millions)	September 30, 2023		December 31, 2022
Receivables for Product and Services in Accounts Receivable, Net	$	1,227	$	954
Receivables for Equipment Rentals in Account Receivable, Net	$	34	$	35
Accounts Receivable, Net	$	1,261	$	989
Contract Assets in Other Current Assets	$	57	$	39
Contract Assets in Other Non-Current Assets	$	28	$	21
Contract Liabilities in Other Current Liabilities	$	46	$	54
Contract Liabilities in Other Non-Current Liabilities	$	3	$	—