Charges and Credits

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Charges and Credits

2. Charges and Credits

2024

Second quarter

During the second quarter of 2024 SLB started a program to realign and optimize its support and service delivery structure in certain parts of its organization. As a result SLB recorded a severance charge of $111 million which is classified in Restructuring in the Consolidated Statement of Income. This program is expected to result in additional charges in the third quarter of 2024.

In connection with SLB's October 2023 acquisition of Aker Solutions ("Aker") subsea business, SLB recorded $31 million of pretax charges during the second quarter of 2024 consisting of: $15 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $16 million of other merger and integration-related costs. $15 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income, with the remaining $16 million classified in Merger & integration.

First quarter

In connection with SLB's acquisition of the Aker subsea business, SLB recorded $25 million of charges during the first quarter of 2024 consisting of: $14 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value and $11 million of other merger and integration-related costs. $14 million of these costs are classified in Cost of Sales in the Consolidated Statement of Income with the remaining $11 million classified in Merger & integration.

	(Stated in millions)
					Noncontrolling
	Pretax Charge		Tax Benefit		Interests		Net
First quarter:
Merger & integration	$	25	$	6	$	5	$	14
Second quarter:
Workforce reductions		111		17		-		94
Merger & integration		31		5		8		18
	$	167	$	28	$	13	$	126

2023

On December 31, 2020, SLB contributed its onshore hydraulic fracturing business in the United States and Canada, including its pressure pumping, pumpdown perforating, and Permian frac sand business to Liberty Energy Inc. (“Liberty”) in exchange for an equity interest in Liberty. During the first quarter of 2023, SLB sold all of its remaining approximately 9 million shares of Liberty and received net proceeds of $137 million. As a result, SLB recognized a pretax gain of $36 million ($28 million after-tax), which is classified in Interest & other income in the Consolidated Statement of Income.

SLB did not record any charges or credits during the second quarter of 2023.