Business Segment and Geographic Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure

Business Segment InformationWe operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.

The following table presents information on our business segments.

		Three Months Ended June 30				Six Months Ended June 30
Millions of dollars		2023		2022		2023		2022
Revenue:
Completion and Production		$	3,476	$	2,911	$	6,885	$	5,264
Drilling and Evaluation		2,322		2,163		4,590		4,094
Total revenue		$	5,798	$	5,074	$	11,475	$	9,358
Operating income:
Completion and Production		$	707	$	499	$	1,373	$	795
Drilling and Evaluation		376		286		745		580
Total operations		1,083		785		2,118		1,375
Corporate and other (a)		(59)		(67)		(117)		(124)
SAP S4 upgrade expense		(13)		—		(13)		—
Impairments and other charges (b)		—		(344)		—		(366)
Total operating income		$	1,011	$	374	$	1,988	$	885
Interest expense, net of interest income		(92)		(101)		(171)		(208)
Loss on Blue Chip Swap transactions (c)		(104)		—		(104)		—
Loss on early extinguishment of debt		—		—		—		(42)
Other, net		(32)		(42)		(101)		(72)
Income before income taxes		$	783	$	231	$	1,612	$	563
(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and also includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)	For the three and six months ended June 30, 2022 respectively, the amounts include $131 million and $136 million charges attributable to Completions and Production, and $178 million and $195 million charges attributable to Drilling and Evaluation. Both periods include a $35 million charge attributable to Corporate and other.
(c)	The Central Bank of Argentina maintains currency controls that limit our ability to access U.S. dollars in Argentina and remit cash from our Argentine operations. Our execution of certain trades, known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate, resulted in a $104 million pre-tax loss during the second quarter of 2023.