Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

2 – Segment Information

Financial information by segment is summarized below. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as presented in our 2021 Annual Report. During the fourth quarter of 2021, our chief operating decision maker changed the information regularly reviewed to be aligned with how we offer our services and technologies in relation to the life cycle of a well and we have realigned our reportable segments to reflect the change. All of our segments are enabled by a full suite of digital, monitoring, optimization and artificial intelligence solutions providing services throughout the well life cycle, including responsible abandonment. We now have three reportable segments: (1) Drilling and Evaluation (2) Well Construction and Completions, and (3) Production and Intervention. Previously we had two geographic based reportable segments, Western Hemisphere and Eastern Hemisphere.

Our primary measure of segment profitability is now segment adjusted EBITDA, which is based on segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. Research and development expenses are included in segment adjusted EBITDA. Corporate and other includes business activities related to all other segments (profit and loss), corporate and other expenses (overhead support and centrally managed or shared facilities costs) that do not individually meet the criteria for segment reporting.

	Three Months Ended March 31,
(Dollars in millions)	2022		2021
Revenues:
Drilling and Evaluation	$	292	$	236
Well Construction and Completions	344		323
Production and Intervention	286		259
Segment Revenues	922		818
All Other	16		14
Total Revenues	$	938	$	832
Segment Adjusted EBITDA:
Drilling and Evaluation	$	59	$	29
Well Construction and Completions	67		50
Production and Intervention	39		41
Segment Adjusted EBITDA	$	165	$	120
Corporate and Other	(14)		(18)
Depreciation and Amortization	(87)		(111)
Share-based Compensation Expense	(7)		(4)
Other Adjustments (a)	(39)		—
Operating Income (Loss)	$	18	$	(13)

(a)Other adjustments include $20 million of restructuring charges in the three months ended March 31, 2022 (see “Note 4 - Restructuring Charges” for additional information) and $19 million of other charges, net, of which $17 million were related to Ukraine ($16 million in the write-down of receivables, inventory and property, plant and equipment, and $1 million in operating support costs). There were no other adjustments in the three months ended March 31, 2021.