Impairments and Other Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

The following table presents various pre-tax charges we recorded during the three and six months ended June 30, 2022, primarily due to the ongoing conflict between Russia and Ukraine. These charges are reflected within "Impairments and other charges" on our condensed consolidated statements of operations.


	Three Months Ended June 30		Six Months Ended June 30
Millions of dollars	2022			2022
Receivables	$	186		$	202
Property, plant, and equipment, net	100			100
Inventory	70			70
Other	(12)			(6)
Total impairments and other charges	$	344		$	366

During the second quarter of 2022, due to Russia's invasion of Ukraine and resulting sanctions imposed on Russia, we made the decision to sell our Russian operations. We executed a non-binding letter of intent with our Russian employee group in May of 2022 for the divestiture of the Russian operations and are in the process of negotiating definitive documentation related to this divestiture. The net assets to be sold (i.e., the disposal group) met the held for sale criteria and as a result, we wrote down the disposal group to fair value less costs to sell, resulting in a pre-tax charge of $344 million. The resulting value of the disposal group held for sale was $1. The anticipated divestiture is not presented as discontinued operations in our condensed consolidated statements of operations because it does not represent a strategic shift in our business. Of these impairments and other charges, approximately $131 million was attributable to our Completion and Production segment, approximately $178 million was attributable to our Drilling and Evaluation segment, and $35 million was selling costs and was attributable to Corporate and other.

During the first quarter of 2022, we recorded a pre-tax charge of $22 million primarily related to the write down of all our assets in Ukraine as part of our decision to cease our operations in Ukraine. Included in this charge is a $16 million allowance for credit loss as we do not expect to collect our receivables in Ukraine.