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Income Taxes | 12 Months Ended
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Dec. 31, 2022
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) |
| 2022 |  |  | 2021 |  |  | 2020 |
United States | $ | 600 |  |  | $ | 30 |  |  | $ | (4,394 | )
Outside United States |  | 3,671 |  |  |  | 2,344 |  |  |  | (6,904 | )
| $ | 4,271 |  |  | $ | 2,374 |  |  | $ | (11,298 | )
SLB recorded net pretax credits of $347 million in 2022 ($379 million of credits in the US and $32 million of net charges outside the US); and $65 million in 2021 ($75 million of credits in the US and $10 million of charges outside the US). SLB recorded net pretax charges of $12.515 billion in 2020 ($3.961 billion in the US and $8.554 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 liabilities were as follows:
(Stated in millions) |
| 2022 |  |  | 2021 |
Intangible assets | $ | (780 | ) |  | $ | (855 | )
Net operating losses |  | 326 |  |  |  | 427 |
Research and development credits |  | 129 |  |  |  | 118 |
Fixed assets, net |  | 101 |  |  |  | 151 |
Inventories |  | 45 |  |  |  | 58 |
Investments in non-US subsidiaries |  | (125 | ) |  |  | (161 | )
Pension and other postretirement benefits |  | (114 | ) |  |  | (136 | )
Other, net |  | 357 |  |  |  | 304 |
| $ | (61 | ) |  | $ | (94 | )
Approximately $300 million of the $326 million deferred tax asset relating to net operating losses at December 31, 2022 can be carried forward indefinitely. The vast majority of the remaining balance expires at various dates between 2030 and 2041. The deferred tax balances at December 31, 2022 and 2021 were net of valuation allowances relating to net operating losses in certain countries of $111 million and $133 million, respectively. Additionally, the deferred tax balances were net of valuation allowances relating to the following:
(Stated in millions) |
| 2022 |  |  | 2021 |
Foreign tax credits | $ | 181 |  |  | $ | 210 |
Capital losses | $ | - |  |  | $ | 49 |
The components of Tax expense (benefit) were as follows:
(Stated in millions) |
| 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |
United States-Federal | $ | 2 |  |  | $ | (32 | ) |  | $ | 21 |
United States-State |  | 3 |  |  |  | - |  |  |  | 5 |
Outside United States |  | 813 |  |  |  | 509 |  |  |  | 410 |
|  | 818 |  |  |  | 477 |  |  |  | 436 |
Deferred: |  |  |  |  |  |  |  |  |  |  |
United States-Federal | $ | 98 |  |  | $ | (132 | ) |  | $ | (824 | )
United States-State |  | 13 |  |  |  | 12 |  |  |  | (67 | )
Outside United States |  | (70 | ) |  |  | (15 | ) |  |  | (563 | )
Valuation allowance |  | (80 | ) |  |  | 104 |  |  |  | 206 |
|  | (39 | ) |  |  | (31 | ) |  |  | (1,248 | )
| $ | 779 |  |  | $ | 446 |  |  | $ | (812 | )
A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:
| 2022 |  |  | 2021 |  |  | 2020 |
US federal statutory rate |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Charges and credits (See Note 3) |  | (1 | ) |  |  | - |  |  |  | (14 | )
Other |  | (2 | ) |  |  | (2 | ) |  |  | - |
|  | 18 | % |  |  | 19 | % |  |  | 7 | %
A number of the jurisdictions in which SLB operates have tax laws that are not fully defined and are evolving. SLB’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 is as follows:
(Stated in millions) |
| 2022 |  |  | 2021 |  |  | 2020 |
Balance at beginning of year | $ | 1,001 |  |  | $ | 1,271 |  |  | $ | 1,301 |
Additions based on tax positions related to the current year |  | 41 |  |  |  | 38 |  |  |  | 76 |
Additions for tax positions of prior years |  | 64 |  |  |  | 19 |  |  |  | 78 |
Impact of changes in exchange rates |  | (38 | ) |  |  | (24 | ) |  |  | (3 | )
Settlements with tax authorities |  | (37 | ) |  |  | (49 | ) |  |  | (15 | )
Reductions for tax positions of prior years |  | (94 | ) |  |  | (228 | ) |  |  | (87 | )
Reductions due to the lapse of statute of limitations |  | (44 | ) |  |  | (26 | ) |  |  | (79 | )
| $ | 893 |  |  | $ | 1,001 |  |  | $ | 1,271 |
The amounts above exclude accrued interest and penalties of $155 million, $164 million and $184 million at December 31, 2022, 2021 and 2020, respectively. SLB 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 SLB operates:
Canada | 2014 - 2022
Ecuador | 2018 - 2022
Mexico | 2013 - 2022
Norway | 2017 - 2022
Russia | 2019 - 2022
Saudi Arabia | 2016 - 2022
United Kingdom | 2017 - 2022
United States | 2017 - 2022

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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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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