XML 42 R23.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

SLB is organized under four Divisions that combine and integrate SLB’s technologies, enhancing the Company’s ability to support the emerging long-term growth opportunities in each of these market segments.

 

The four Divisions, representing SLB’s segments, are:

 

•

Digital & Integration – Combines SLB’s industry-leading digital solutions and data products with its integrated offering of Asset Performance Solutions. 

 

•

Reservoir Performance – Consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance.

 

•

Well Construction – Combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance.

 

•

Production Systems – Develops technologies and provides expertise that enhance production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries.

 

Financial information by segment is as follows:

 

 

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

 

 

Pretax

 

 

 

 

 

 

and

 

 

Capital

 

 

Revenue

 

 

Income

 

 

Assets

 

 

Amortization

 

 

Investments

 

Digital & Integration

$

3,725

 

 

$

1,357

 

 

$

3,132

 

 

$

504

 

 

$

689

 

Reservoir Performance

 

5,553

 

 

 

881

 

 

 

3,159

 

 

 

386

 

 

 

478

 

Well Construction

 

11,397

 

 

 

2,202

 

 

 

6,481

 

 

 

524

 

 

 

687

 

Production Systems

 

7,862

 

 

 

748

 

 

 

5,603

 

 

 

311

 

 

 

346

 

Eliminations & other

 

(446

)

 

 

(177

)

 

 

1,426

 

 

 

271

 

 

 

102

 

Pretax segment operating income

 

 

 

 

 

5,011

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

 

 

 

 

 

 

 

 

15,974

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

 

 

 

 

 

 

 

 

2,897

 

 

 

 

 

 

 

 

 

All other assets

 

 

 

 

 

 

 

 

 

4,463

 

 

 

 

 

 

 

 

 

Corporate & other (1)

 

 

 

 

 

(637

)

 

 

 

 

 

 

151

 

 

 

 

 

Interest income (2)

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (3)

 

 

 

 

 

(477

)

 

 

 

 

 

 

 

 

 

 

 

 

Charges & credits (4)

 

 

 

 

 

347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

28,091

 

 

$

4,271

 

 

$

43,135

 

 

$

2,147

 

 

$

2,302

 

 

 

 

 

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

 

 

Pretax

 

 

 

 

 

 

and

 

 

Capital

 

 

Revenue

 

 

Income

 

 

Assets

 

 

Amortization

 

 

Investments

 

Digital & Integration

$

3,290

 

 

$

1,141

 

 

$

3,134

 

 

$

446

 

 

$

516

 

Reservoir Performance

 

4,599

 

 

 

648

 

 

 

2,923

 

 

 

415

 

 

 

348

 

Well Construction

 

8,706

 

 

 

1,195

 

 

 

4,714

 

 

 

537

 

 

 

424

 

Production Systems

 

6,710

 

 

 

634

 

 

 

4,684

 

 

 

302

 

 

 

267

 

Eliminations & other

 

(376

)

 

 

(253

)

 

 

1,501

 

 

 

269

 

 

 

99

 

Pretax segment operating income

 

 

 

 

 

3,365

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

 

 

 

 

 

 

 

 

16,201

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

 

 

 

 

 

 

 

 

3,139

 

 

 

 

 

 

 

 

 

All other assets

 

 

 

 

 

 

 

 

 

5,215

 

 

 

 

 

 

 

 

 

Corporate & other (1)

 

 

 

 

 

(573

)

 

 

 

 

 

 

151

 

 

 

 

 

Interest income (2)

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (3)

 

 

 

 

 

(514

)

 

 

 

 

 

 

 

 

 

 

 

 

Charges & credits (4)

 

 

 

 

 

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

22,929

 

 

$

2,374

 

 

$

41,511

 

 

$

2,120

 

 

$

1,654

 

 

 

 

 

 

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

 

 

Pretax

 

 

 

 

 

 

and

 

 

Capital

 

 

Revenue

 

 

Income (Loss)

 

 

Assets

 

 

Amortization

 

 

Investments

 

Digital & Integration

$

3,067

 

 

$

727

 

 

$

3,595

 

 

$

615

 

 

$

413

 

Reservoir Performance

 

5,602

 

 

 

353

 

 

 

3,489

 

 

 

549

 

 

 

384

 

Well Construction

 

8,614

 

 

 

870

 

 

 

4,768

 

 

 

580

 

 

 

420

 

Production Systems

 

6,650

 

 

 

623

 

 

 

4,665

 

 

 

338

 

 

 

240

 

Eliminations & other

 

(332

)

 

 

(172

)

 

 

940

 

 

 

276

 

 

 

63

 

Pretax segment operating income

 

 

 

 

 

2,401

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

 

 

 

 

 

 

 

 

16,436

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

 

 

 

 

 

 

 

 

3,006

 

 

 

 

 

 

 

 

 

All other assets

 

 

 

 

 

 

 

 

 

5,535

 

 

 

 

 

 

 

 

 

Corporate & other (1)

 

 

 

 

 

(681

)

 

 

 

 

 

 

208

 

 

 

 

 

Interest income (2)

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (3)

 

 

 

 

 

(534

)

 

 

 

 

 

 

 

 

 

 

 

 

Charges & credits (4)

 

 

 

 

 

(12,515

)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

23,601

 

 

$

(11,298

)

 

$

42,434

 

 

$

2,566

 

 

$

1,520

 

 

(1)

Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

(2)

Interest income excludes amounts which are included in the segments’ income (2022: $72 million; 2021: $2 million; 2020: $2 million).

(3)

Interest expense excludes amounts which are included in the segments’ income (2022: $13 million; 2021: $15 million; 2020: $28 million) and $10 million interest expense included in Charges & credits in 2021.

(4)

See Note 3 – Charges and Credits.

 

Segment assets consist of receivables, inventories, fixed assets, exploration data and APS investments.

 

Capital investments includes capital expenditures, APS investments and exploration data cost capitalized.

Depreciation and amortization includes depreciation of property, plant and equipment and amortization of intangible assets, exploration data costs and APS investments.

 

Revenue by geographic area for the years ended December 31, 2022, 2021 and 2020 was as follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

North America

$

5,995

 

 

$

4,466

 

 

$

5,478

 

Latin America

 

5,661

 

 

 

4,459

 

 

 

3,472

 

Europe/CIS/Africa

 

7,201

 

 

 

5,778

 

 

 

5,963

 

Middle East & Asia

 

9,033

 

 

 

8,059

 

 

 

8,567

 

Eliminations & other

 

201

 

 

 

167

 

 

 

121

 

 

$

28,091

 

 

$

22,929

 

 

$

23,601

 

 

Revenue is based on the location where services are provided and products are sold.

 

During each of the three years ended December 31, 2022, 2021 and 2020, no single customer exceeded 10% of consolidated revenue.

 

SLB did not have revenue from third-party customers in its country of domicile during the last three years. Revenue in the United States in 2022, 2021 and 2020 was $4.6 billion, $3.4 billion and $4.5 billion, respectively.

North America and International revenue disaggregated by segment was as follows:

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

North America

 

 

International

 

 

Other

 

 

Total

 

Digital & Integration

$

1,069

 

 

$

2,651

 

 

$

5

 

 

$

3,725

 

Reservoir Performance

 

455

 

 

 

5,091

 

 

 

7

 

 

 

5,553

 

Well Construction

 

2,311

 

 

 

8,875

 

 

 

211

 

 

 

11,397

 

Production Systems

 

2,176

 

 

 

5,675

 

 

 

11

 

 

 

7,862

 

Eliminations & other

 

(16

)

 

 

(397

)

 

 

(33

)

 

 

(446

)

 

$

5,995

 

 

$

21,895

 

 

$

201

 

 

$

28,091

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

North America

 

 

International

 

 

Other

 

 

Total

 

Digital & Integration

$

812

 

 

$

2,474

 

 

$

4

 

 

$

3,290

 

Reservoir Performance

 

329

 

 

 

4,266

 

 

 

4

 

 

 

4,599

 

Well Construction

 

1,485

 

 

 

7,025

 

 

 

196

 

 

 

8,706

 

Production Systems

 

1,832

 

 

 

4,865

 

 

 

13

 

 

 

6,710

 

Eliminations & other

 

8

 

 

 

(334

)

 

 

(50

)

 

 

(376

)

 

$

4,466

 

 

$

18,296

 

 

$

167

 

 

$

22,929

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

North America

 

 

International

 

 

Other

 

 

Total

 

Digital & Integration

$

573

 

 

$

2,487

 

 

$

7

 

 

$

3,067

 

Reservoir Performance

 

1,547

 

 

 

4,043

 

 

 

12

 

 

 

5,602

 

Well Construction

 

1,453

 

 

 

6,965

 

 

 

196

 

 

 

8,614

 

Production Systems

 

1,921

 

 

 

4,702

 

 

 

27

 

 

 

6,650

 

Eliminations & other

 

(16

)

 

 

(195

)

 

 

(121

)

 

 

(332

)

 

$

5,478

 

 

$

18,002

 

 

$

121

 

 

$

23,601

 

 

Fixed Assets less accumulated depreciation by geographic area was as follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

North America

$

1,459

 

 

$

1,368

 

Latin America

 

913

 

 

 

868

 

Europe/CIS/Africa

 

1,668

 

 

 

1,690

 

Middle East & Asia

 

2,099

 

 

 

2,049

 

Unallocated

 

468

 

 

 

454

 

 

$

6,607

 

 

$

6,429

 

 

 

17. Supplementary Information

Cash paid for interest and income taxes was as follows:  

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Interest

$

562

 

 

$

560

 

 

$

598

 

Income tax

$

716

 

 

$

591

 

 

$

582

 

 

Interest and other income, net includes the following:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Gain on sale of Liberty shares *

$

325

 

 

$

28

 

 

$

-

 

Loss on Blue Chip Swap transactions *

 

(139

)

 

 

-

 

 

 

-

 

Gain on ADC equity investment *

 

107

 

 

 

-

 

 

 

-

 

Earnings of equity method investments

 

164

 

 

 

40

 

 

 

91

 

Interest income

 

99

 

 

 

33

 

 

 

33

 

Gain on sale of real estate *

 

43

 

 

 

-

 

 

 

-

 

Gain on repurchase of bonds *

 

11

 

 

 

-

 

 

 

-

 

Unrealized gain on marketable securities *

 

-

 

 

 

47

 

 

 

39

 

Gain on sale of OneStim *

 

-

 

 

 

-

 

 

 

104

 

 

$

610

 

 

$

148

 

 

$

267

 

 

* See Note 3 – Charges and Credits

The components of depreciation and amortization expense were as follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Depreciation of fixed assets

$

1,368

 

 

$

1,402

 

 

$

1,625

 

Amortization of APS investments

 

368

 

 

 

305

 

 

 

396

 

Amortization of intangible assets

 

301

 

 

 

302

 

 

 

371

 

Amortization of exploration data costs

 

110

 

 

 

111

 

 

 

174

 

 

$

2,147

 

 

$

2,120

 

 

$

2,566

 

 

 

 

The change in Allowance for doubtful accounts was as follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

Balance at beginning of year

$

319

 

 

$

301

 

 

$

255

 

Additions

 

54

 

 

 

47

 

 

 

58

 

Amounts written off

 

(33

)

 

 

(29

)

 

 

(12

)

Balance at end of year

$

340

 

 

$

319

 

 

$

301

 

  

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.3 billion at December 31, 2022 and $0.2 billion at December 31, 2021.  Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Other Assets consist of the following:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

Investments in APS projects

$

2,023

 

 

$

1,786

 

Pension and other postretirement plan assets

 

904

 

 

 

1,034

 

Operating lease assets

 

538

 

 

 

553

 

Exploration data costs capitalized

 

141

 

 

 

154

 

Fair value of hedge contracts

 

1

 

 

 

66

 

Other

 

363

 

 

 

590

 

 

$

3,970

 

 

$

4,183

 

Accounts payable and accrued liabilities consist of the following:

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

Trade

$

3,921

 

 

$

3,205

 

Payroll, vacation and employee benefits

 

1,493

 

 

 

1,377

 

Billings and cash collections in excess of revenue

 

1,157

 

 

 

1,088

 

Other

 

2,550

 

 

 

2,712

 

 

$

9,121

 

 

$

8,382