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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes Income (loss) before taxes subject to United States and non-United States income taxes was as follows:
(Stated in millions) |
| 2021 |  |  | 2020 |  |  | 2019 |
United States | $ | 30 |  |  | $ | (4,394 | ) |  | $ | (8,991 | )
Outside United States |  | 2,344 |  |  |  | (6,904 | ) |  |  | (1,427 | )
| $ | 2,374 |  |  | $ | (11,298 | ) |  | $ | (10,418 | )
Schlumberger recorded net pretax credits of $65 million in 2021 ($75 million of credits in the US and $10 million of charges outside the US). Schlumberger recorded net pretax charges of $12.515 billion in 2020 ($3.961 billion in the US and $8.554 billion outside the US); and $12.901 billion in 2019 ($8.769 billion in the US and $4.132 billion outside the US). These charges and credits are included in the table above and are more fully described in Note 3 – Charges and Credits. The components of net deferred tax assets (liabilities) were as follows:
(Stated in millions) |
| 2021 |  |  | 2020 |
Intangible assets | $ | (855 | ) |  | $ | (881 | )
Net operating losses |  | 427 |  |  |  | 421 |
Research and development credits |  | 118 |  |  |  | 96 |
Fixed assets, net |  | 151 |  |  |  | 151 |
Inventories |  | 58 |  |  |  | 59 |
Investments in non-US subsidiaries |  | (161 | ) |  |  | (171 | )
Pension and other postretirement benefits |  | (136 | ) |  |  | (31 | )
Other, net |  | 304 |  |  |  | 337 |
| $ | (94 | ) |  | $ | (19 | )
The deferred tax balances at December 31, 2021 and 2020 were net of valuation allowances relating to net operating losses in certain countries of $133 million and $127 million, respectively. Additionally, the deferred tax balances were net of valuation allowances relating to the following:
(Stated in millions) |
| 2021 |  |  | 2020 |
Foreign tax credits | $ | 210 |  |  | $ | 106 |
Capital losses | $ | 49 |  |  | $ | 54 |
Approximately $390 million of the $427 million deferred tax asset relating to net operating losses at December 31, 2021 can be carried forward indefinitely. The vast majority of the remaining balance expires at various dates between 2030 and 2040. The components of Tax expense (benefit) were as follows:
(Stated in millions) |
| 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |  |  |
United States-Federal | $ | (32 | ) |  | $ | 21 |  |  | $ | (81 | )
United States-State |  | - |  |  |  | 5 |  |  |  | 11 |
Outside United States |  | 509 |  |  |  | 410 |  |  |  | 770 |
|  | 477 |  |  |  | 436 |  |  |  | 700 |
Deferred: |  |  |  |  |  |  |  |  |  |  |
United States-Federal | $ | (132 | ) |  | $ | (824 | ) |  | $ | (660 | )
United States-State |  | 12 |  |  |  | (67 | ) |  |  | (93 | )
Outside United States |  | (15 | ) |  |  | (563 | ) |  |  | (257 | )
Valuation allowance |  | 104 |  |  |  | 206 |  |  |  | (1 | )
|  | (31 | ) |  |  | (1,248 | ) |  |  | (1,011 | )
| $ | 446 |  |  | $ | (812 | ) |  | $ | (311 | )
A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:
| 2021 |  |  | 2020 |  |  | 2019 |
US federal statutory rate |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Charges and credits (See Note 3) |  | - |  |  |  | (14 | ) |  |  | (19 | )
Other |  | (2 | ) |  |  | - |  |  |  | 1 |
|  | 19 | % |  |  | 7 | % |  |  | 3 | %
A number of the jurisdictions in which Schlumberger operates have tax laws that are not fully defined and are evolving. Schlumberger’s tax filings are subject to regular audit by the tax authorities. These audits may result in assessments for additional taxes that are resolved with the tax authorities or, potentially, through the courts. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the conclusion of these audits. Due to the uncertain and complex application of tax regulations, the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2021, 2020 and 2019 is as follows:
(Stated in millions) |
| 2021 |  |  | 2020 |  |  | 2019 |
Balance at beginning of year | $ | 1,271 |  |  | $ | 1,301 |  |  | $ | 1,433 |
Additions based on tax positions related to the current year |  | 38 |  |  |  | 76 |  |  |  | 86 |
Additions for tax positions of prior years |  | 19 |  |  |  | 78 |  |  |  | 65 |
Impact of changes in exchange rates |  | (24 | ) |  |  | (3 | ) |  |  | 2 |
Settlements with tax authorities |  | (49 | ) |  |  | (15 | ) |  |  | (50 | )
Reductions for tax positions of prior years |  | (228 | ) |  |  | (87 | ) |  |  | (176 | )
Reductions due to the lapse of the applicable statute of limitations |  | (26 | ) |  |  | (79 | ) |  |  | (59 | )
| $ | 1,001 |  |  | $ | 1,271 |  |  | $ | 1,301 |
The amounts above exclude accrued interest and penalties of $164 million, $184 million and $188 million at December 31, 2021, 2020 and 2019, respectively. Schlumberger classifies interest and penalties relating to uncertain tax positions within Tax expense (benefit) in the Consolidated Statement of Income (Loss). The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which Schlumberger operates:
Canada | 2014 - 2021
Ecuador | 2017 - 2021
Mexico | 2013 - 2021
Norway | 2016 - 2021
Russia | 2016 - 2021
Saudi Arabia | 2016 - 2021
United Kingdom | 2017 - 2021
United States | 2017 - 2021

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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