Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

10. Segment Information

				(Stated in millions)
	Second Quarter 2023						Second Quarter 2022
				Income						Income
	Revenue			Before Taxes			Revenue			Before Taxes
Digital & Integration	$	947		$	322		$	955		$	379
Reservoir Performance		1,643			306			1,333			195
Well Construction		3,362			731			2,686			470
Production Systems		2,313			278			1,893			171
Eliminations & other		(166	)		(56	)		(94	)		(56	)
Pretax segment operating income					1,581						1,159
Corporate & other (1)					(183	)					(148	)
Interest income (2)					19						3
Interest expense (3)					(124	)					(121	)
Charges and credits (4)					-						259
	$	8,099		$	1,293		$	6,773		$	1,152

(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 that are included in the segments’ income ($- million in 2023; $16 million in 2022).

(3)Interest expense excludes amounts that are included in the segments’ income ($3 million in 2023; $3 million in 2022).

(4)See Note 2 – Charges and Credits.

				(Stated in millions)
	Six Months 2023						Six Months 2022
				Income						Income
	Revenue			Before Taxes			Revenue			Before Taxes
Digital & Integration	$	1,840		$	587		$	1,813		$	671
Reservoir Performance		3,146			548			2,543			355
Well Construction		6,623			1,403			5,083			858
Production Systems		4,520			483			3,497			285
Eliminations & other		(294	)		(49	)		(201	)		(115	)
Pretax segment operating income					2,972						2,054
Corporate & other (1)					(353	)					(313	)
Interest income (2)					36						5
Interest expense (3)					(237	)					(241	)
Charges and credits (4)					36						285
	$	15,835		$	2,454		$	12,735		$	1,790

(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 that are included in the segments’ income ($- million in 2023; $28 million in 2022).

(3)Interest expense excludes amounts that are included in the segments’ income ($7 million in 2023; $6 million in 2022).

(4)See Note 2 – Charges and Credits.

Revenue by geographic area was as follows:

					(Stated in millions)
	Second Quarter				Six Months
	2023		2022		2023		2022
North America	$	1,746	$	1,537	$	3,443	$	2,819
Latin America		1,624		1,329		3,242		2,534
Europe & Africa (1)		2,031		1,691		4,005		3,094
Middle East & Asia		2,642		2,168		5,035		4,192
Other		56		48		110		96
	$	8,099	$	6,773	$	15,835	$	12,735

(1)Includes Russia and the Caspian region.

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

							(Stated in millions)
	Second Quarter 2023
	North
	America			International			Other			Total
Digital & Integration	$	234		$	712		$	1		$	947
Reservoir Performance		130			1,512			1			1,643
Well Construction		721			2,582			59			3,362
Production Systems		679			1,628			6			2,313
Eliminations & other		(18	)		(137	)		(11	)		(166	)
	$	1,746		$	6,297		$	56		$	8,099
	Second Quarter 2022
	North
	America			International			Other			Total
Digital & Integration	$	327		$	627		$	1		$	955
Reservoir Performance		111			1,222			-			1,333
Well Construction		553			2,083			50			2,686
Production Systems		550			1,341			2			1,893
Eliminations & other		(4	)		(85	)		(5	)		(94	)
	$	1,537		$	5,188		$	48		$	6,773

	Six Months 2023
	North
	America			International			Other			Total
Digital & Integration	$	485		$	1,354		$	1		$	1,840
Reservoir Performance		250			2,892			4			3,146
Well Construction		1,432			5,075			116			6,623
Production Systems		1,305			3,202			13			4,520
Eliminations & other		(29	)		(241	)		(24	)		(294	)
	$	3,443		$	12,282		$	110		$	15,835
	Six Months 2022
	North
	America			International			Other			Total
Digital & Integration	$	552		$	1,258		$	3		$	1,813
Reservoir Performance		214			2,326			3			2,543
Well Construction		1,038			3,948			97			5,083
Production Systems		1,023			2,468			6			3,497
Eliminations & other		(8	)		(180	)		(13	)		(201	)
	$	2,819		$	9,820		$	96		$	12,735

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.3 billion at both June 30, 2023 and December 31, 2022. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Due to the nature of its business, SLB does not have significant backlog. Total backlog was $3.2 billion at June 30, 2023, of which approximately 55% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $1.3 billion at June 30, 2023 and $1.2 billion at December 31, 2022. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.