Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

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 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 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 June 30,				Six Months Ended June 30,
(Dollars in millions)	2022		2021		2022		2021
Revenues:
Drilling and Evaluation	$	317	$	265	$	609	$	501
Well Construction and Completions	383		337		727		660
Production and Intervention	345		278		631		537
Segment Revenues	1,045		880		1,967		1,698
All Other	19		23		35		37
Total Revenues	$	1,064	$	903	$	2,002	$	1,735

Segment Adjusted EBITDA:
Drilling and Evaluation	$	69	$	46	$	128	$	75
Well Construction and Completions	67		55		134		105
Production and Intervention	68		46		107		87
Segment Adjusted EBITDA	$	204	$	147	$	369	$	267
Corporate and Other	(18)		(11)		(32)		(29)
Depreciation and Amortization	(90)		(114)		(177)		(225)
Share-based Compensation Expense	(6)		(5)		(13)		(9)



































Other Adjustments (a)	14		8		(25)		8










Operating Income	$	104	$	25	$	122	$	12

(a)Other adjustments in six months ended June 30, 2022 primarily include a net credit from the gain on asset sales related to our fulfillment initiatives and collections of previously impaired receivables in the three months ended June 30, 2022 offset by net charges in the three months ended March 31, 2022 that include a $20 million restructuring charge and a $17 million charge related to Ukraine. See “Note 4 – Restructuring Charges” for additional information on restructuring around our fulfillment initiatives.