Segment Information (Tables)

9 Months Ended

Sep. 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. 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 September 30,				Nine Months Ended September 30,
(Dollars in millions)	2022		2021		2022		2021
Revenues:
Drilling and Evaluation	$	348	$	278	$	957	$	779
Well Construction and Completions	391		345		1,118		1,005
Production and Intervention	357		292		988		829
Segment Revenues	1,096		915		3,063		2,613
All Other	24		30		59		67
Total Revenues	$	1,120	$	945	$	3,122	$	2,680

Segment Adjusted EBITDA:
Drilling and Evaluation	$	85	$	56	$	213	$	131
Well Construction and Completions	78		79		212		184
Production and Intervention	66		57		173		144
Segment Adjusted EBITDA	$	229	$	192	$	598	$	459
Corporate and Other	(15)		(13)		(47)		(42)
Depreciation and Amortization	(88)		(112)		(265)		(337)
Share-based Compensation Expense	(5)		(4)		(18)		(13)



































Other Adjustments (a)	—		8		(25)		16










Operating Income	$	121	$	71	$	243	$	83

(a)Other adjustments in nine months ended September 30, 2022 primarily include a $22 million restructuring charge. See “Note 4 – Restructuring Charges” for additional information on restructuring around our fulfillment initiatives. Other adjustments were a net credit for the three and nine months ended September 30, 2021, primarily driven by gains on asset sales.