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Income Taxes
 12 Months Ended
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