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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes Income before taxes subject to United States and non-United States income taxes was as follows:
(Stated in millions) |
| 2023 |  |  | 2022 |  |  | 2021 |
United States | $ | 355 |  |  | $ | 600 |  |  | $ | 30 |
Outside United States |  | 4,927 |  |  |  | 3,671 |  |  |  | 2,344 |
| $ | 5,282 |  |  | $ | 4,271 |  |  | $ | 2,374 |
SLB recorded net pretax charges of $110 million in 2023 ($2 million of net credits in the US and $112 million of charges outside the US); $347 million in 2022 ($379 million of net credits in the US and $32 million of net charges outside the US); and net pretax credits of $65 million in 2021 ($75 million of credits in the US and $10 million of charges 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) |
| 2023 |  |  | 2022 |
Intangible assets | $ | (844 | ) |  | $ | (780 | )
Net operating losses |  | 214 |  |  |  | 326 |
Fixed assets, net |  | 190 |  |  |  | 101 |
Research and development credits |  | 162 |  |  |  | 129 |
Capitalized research and development costs |  | 155 |  |  |  | 72 |
Pension and other postretirement benefits |  | (94 | ) |  |  | (114 | )
Other, net |  | 77 |  |  |  | 205 |
| $ | (140 | ) |  | $ | (61 | )
Approximately $194 million of the $214 million deferred tax asset relating to net operating losses at December 31, 2023 can be carried forward indefinitely. The majority of the remaining balance expires at various dates between 2032 and 2041. The deferred tax balance at December 31, 2023 and 2022 was net of valuation allowances relating to the following:
(Stated in millions) |
| 2023 |  |  | 2022 |
Foreign tax credits | $ | 188 |  |  | $ | 181 |
Net operating losses | $ | 106 |  |  | $ | 111 |
The components of Tax expense were as follows:
(Stated in millions) |
| 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |
United States-Federal | $ | (23 | ) |  | $ | 2 |  |  | $ | (32 | )
United States-State |  | 5 |  |  |  | 3 |  |  |  | - |
Outside United States |  | 997 |  |  |  | 813 |  |  |  | 509 |
|  | 979 |  |  |  | 818 |  |  |  | 477 |
Deferred: |  |  |  |  |  |  |  |
United States-Federal | $ | (77 | ) |  | $ | 98 |  |  | $ | (132 | )
United States-State |  | 6 |  |  |  | 13 |  |  |  | 12 |
Outside United States |  | 104 |  |  |  | (70 | ) |  |  | (15 | )
Valuation allowance |  | (5 | ) |  |  | (80 | ) |  |  | 104 |
|  | 28 |  |  |  | (39 | ) |  |  | (31 | )
| $ | 1,007 |  |  | $ | 779 |  |  | $ | 446 |
A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:
| 2023 |  |  | 2022 |  |  | 2021 |
US federal statutory rate |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Charges and credits (See Note 3) |  | - |  |  |  | (1 | ) |  |  | - |
Other |  | (2 | ) |  |  | (2 | ) |  |  | (2 | )
|  | 19 | % |  |  | 18 | % |  |  | 19 | %
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) |
| 2023 |  |  | 2022 |  |  | 2021 |
Balance at beginning of year | $ | 893 |  |  | $ | 1,001 |  |  | $ | 1,271 |
Additions based on tax positions related to the current year |  | 66 |  |  |  | 41 |  |  |  | 38 |
Additions for tax positions of prior years |  | 91 |  |  |  | 64 |  |  |  | 19 |
Impact of changes in exchange rates |  | (25 | ) |  |  | (38 | ) |  |  | (24 | )
Settlements with tax authorities |  | (36 | ) |  |  | (37 | ) |  |  | (49 | )
Reductions for tax positions of prior years |  | (176 | ) |  |  | (94 | ) |  |  | (228 | )
Reductions due to the lapse of statute of limitations |  | (30 | ) |  |  | (44 | ) |  |  | (26 | )
| $ | 783 |  |  | $ | 893 |  |  | $ | 1,001 |
The amounts above exclude accrued interest and penalties of $155 million at both December 31, 2023 and 2022, and $164 million at December 31, 2021, respectively. SLB classifies interest and penalties relating to uncertain tax positions within Tax expense in the Consolidated Statement of Income. 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 | 2017 - 2023
Ecuador | 2019 - 2023
Mexico | 2016 - 2023
Norway | 2018 - 2023
Russia | 2021 - 2023
Saudi Arabia | 2016 - 2023
United Kingdom | 2017 - 2023
United States | 2020 - 2023

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