Pension and Other Benefit Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Pension and Other Benefit Plans

17. Pension and Other Postretirement Benefit Plans

Pension Plans

SLB sponsors several defined benefit pension plans that cover substantially all US employees hired prior to October 1, 2004. The benefits are based on years of service and compensation, on a career-average pay basis.

In addition to the US defined benefit pension plans, SLB sponsors several other international defined benefit pension plans. The most significant of these international plans are the International Staff Pension Plan and the UK pension plan (collectively, the “International plans”). The International Staff Pension Plan covers certain international employees hired prior to July 1, 2014 and is based on years of service and compensation on a career-average pay basis. The UK plan covers employees hired prior to April 1, 1999, and is based on years of service and compensation, on a final salary basis.

The weighted-average assumed discount rate, compensation increases and expected long-term rate of return on plan assets used to determine the net pension cost for the US and International plans were as follows:

	US									International
	2023			2022			2021			2023			2022			2021
Discount rate		5.50	%		3.00	%		2.60	%		5.41	%		2.83	%		2.38	%
Compensation increases		4.00	%		4.00	%		4.00	%		4.84	%		4.83	%		4.82	%
Return on plan assets		6.00	%		4.40	%		6.60	%		6.00	%		5.05	%		6.73	%

Net pension cost (credit) included the following components:

(Stated in millions)
	US									International
	2023			2022			2021			2023			2022			2021
Service cost	$	23		$	37		$	44		$	54		$	101		$	117
Interest cost		178			137			127			407			298			267
Expected return on plan assets		(198	)		(202	)		(254	)		(607	)		(530	)		(640	)
Amortization of net loss		-			5			44			-			80			227
	$	3		$	(23	)	$	(39	)	$	(146	)	$	(51	)	$	(29	)

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans were as follows:

	US						International
	2023			2022			2023			2022
Discount rate		5.25	%		5.50	%		5.14	%		5.41	%
Compensation increases		4.00	%		4.00	%		4.84	%		4.84	%

The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:

(Stated in millions)
	US						International
	2023			2022			2023			2022
Change in Projected Benefit Obligations:
Projected benefit obligation at beginning of year	$	3,315		$	4,668		$	7,598		$	10,618
Service cost		23			37			54			101
Interest cost		178			137			407			298
Contribution by plan participants		-			-			52			47
Actuarial losses (gains)		117			(1,152	)		302			(3,140	)
Currency effect		-			-			56			(148	)
Benefits paid		(220	)		(375	)		(360	)		(363	)
Other		-			-			-			185
Projected benefit obligation at end of year	$	3,413		$	3,315		$	8,109		$	7,598
Change in Plan Assets:
Plan assets at fair value at beginning of year	$	3,396		$	4,696		$	8,126		$	11,221
Actual return on plan assets		242			(933	)		494			(2,834	)
Currency effect		-			-			71			(188	)
Company contributions		9			8			7			18
Contributions by plan participants		-			-			52			47
Benefits paid		(220	)		(375	)		(360	)		(363	)
Other		-			-			-			225
Plan assets at fair value at end of year	$	3,427		$	3,396		$	8,390		$	8,126
Asset	$	14		$	81		$	281		$	528
Amounts Recognized in Balance Sheet:
Postretirement Benefits	$	(159	)	$	(151	)	$	(16	)	$	(14	)
Other Assets		173			232			297			542
	$	14		$	81		$	281		$	528
Amounts Recognized in Accumulated Other Comprehensive Loss:
Actuarial losses	$	328		$	255		$	1,804		$	1,366
Accumulated benefit obligation	$	3,313		$	3,221		$	7,942		$	7,454

The asset represents the difference between the plan assets and the projected benefit obligation (“PBO”). The PBO represents the actuarial present value of benefits based on employee service and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation but does not include an assumption about future compensation levels.

Actuarial gains and losses arising during 2023 and 2022 were primarily attributable to changes in the discount rate used to determine the PBO.

The weighted-average allocation of plan assets as of December 31, 2023 and 2022 and the target allocations by asset category as of December 31, 2023 were as follows:

	US									International
	Target			2023			2022			Target			2023			2022
Cash and cash equivalents	0 - 3		%		1	%		2	%	0 - 5		%		3	%		2	%
Equity securities	0 - 5				-			-		0 - 5				1			10
Debt securities	80 - 90				84			83		60 - 70				69			56
Private equity and real estate	5 - 12				10			11		15 - 20				17			19
Private debt	2 - 8				5			4		9 - 15				10			13
		100	%		100	%		100	%		100	%		100	%		100	%

The expected rate of return on assets assumptions reflect the long-term average rate of return expected to be earned on plan assets. The assumptions have been determined based on expectations regarding future rates of return for the portfolio considering the asset allocation and related historical rates of return. The appropriateness of the assumptions is reviewed annually.

The fair value of SLB’s pension plan assets at December 31, 2023 and 2022, by asset category, is presented below and was determined based on valuation techniques categorized as follows:

•Level One: The use of quoted prices in active markets for identical instruments.

•Level Two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data.

•Level Three: The use of significant unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing.

(Stated in millions)
	US Plan Assets
	2023								2022
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	33	$	33	$	-	$	-	$	81	$	77	$	4	$	-
Equity Securities:
US		6		-		6		-		3		-		3		-
International		-		-		-		-		-		-		-		-
Debt Securities:
Corporate bonds		1,540		-		1,540		-		1,775		-		1,775		-
Government and related debt securities		1,334		163		1,171		-		1,014		157		857		-
Other		12		-		12		-		29		-		29		-
Alternative Investments:
Private equity		287		-		-		287		291		-		-		291
Private debt		148		-		-		148		124		-		-		124
Real estate		67		-		-		67		79		-		-		79
Total	$	3,427	$	196	$	2,729	$	502	$	3,396	$	234	$	2,668	$	494

(Stated in millions)
	International Plan Assets
	2023								2022
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	267	$	260	$	7	$	-	$	170	$	163	$	7	$	-
Equity Securities:
US		84		84		-		-		580		497		83		-
International		38		38		-		-		273		273		-		-
Debt Securities:
Corporate bonds		3,001		-		3,001		-		2,224		-		2,224		-
Government and related debt securities		2,466		563		1,903		-		2,283		336		1,947		-
Other		292		-		292		-		13		-		13		-
Alternative Investments:
Private equity		1,269		-		-		1,269		1,362		-		-		1,362
Private debt		805		-		-		805		1,041		-		-		1,041
Real estate		168		-		-		168		180		-		-		180
Total	$	8,390	$	945	$	5,203	$	2,242	$	8,126	$	1,269	$	4,274	$	2,583

SLB’s funding policy is to contribute amounts that are based upon a number of factors including the funded status of the plans, amounts that are deductible for income tax purposes, legal funding requirements, and available cash flow. SLB does not expect to make any material contributions to its postretirement benefit plans in 2024.

Postretirement Benefits Other Than Pensions

SLB provides healthcare benefits to certain former US employees who have retired.

The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic benefit cost for the US postretirement medical plan were as follows:

	Benefit Obligation						Net Periodic Benefit
	At December 31,						Cost for the Year
	2023			2022			2023			2022			2021
Discount rate		5.25	%		5.50	%		5.50	%		3.00	%		2.60	%
Return on plan assets	-			-				4.41	%		2.94	%		6.21	%
Current medical cost trend rate		7.50	%		7.50	%		7.50	%		6.75	%		7.00	%
Ultimate medical cost trend rate		4.50	%		4.50	%		4.50	%		4.50	%		4.50	%
Year that the rate reaches the ultimate trend rate		2035			2035			2035			2031			2031

The net credit for the US postretirement medical plan included the following components:

(Stated in millions)
	2023			2022			2021
Service cost	$	16		$	23		$	28
Interest cost		42			33			32
Expected return on plan assets		(41	)		(38	)		(73	)
Amortization of prior service credit		(23	)		(23	)		(23	)
Amortization of net gain		(12	)		(10	)		-
	$	(18	)	$	(15	)	$	(36	)

The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:

(Stated in millions)
	2023			2022
Change in Accumulated Postretirement Benefit Obligation:
Benefit obligation at beginning of year	$	808		$	1,146
Service cost		16			23
Interest cost		42			33
Contribution by plan participants		7			9
Actuarial gains		(7	)		(338	)
Benefits paid		(61	)		(65	)
Benefit obligation at end of year	$	805		$	808
Change in Plan Assets:
Plan assets at fair value at beginning of year	$	938		$	1,318
Actual return on plan assets		87			(323	)
Contributions by plan participants		7			8
Benefits paid		(68	)		(65	)
Plan assets at fair value at end of year	$	964		$	938
Asset	$	159		$	130
Amounts Recognized in Accumulated Other Comprehensive Loss:
Actuarial gains	$	239		$	199
Prior service credit		36			59
	$	275		$	258

The asset balance relating to this plan was included in Other Assets in the Consolidated Balance Sheet.

The assets of the US postretirement medical plan are invested 87% in debt securities and 13% in equity securities at December 31, 2023. The fair value of these assets was primarily determined based on Level Two valuation techniques.

Other Information

The expected benefits to be paid under the US and International pension plans as well as the postretirement medical plan are as follows:

(Stated in millions)
	Pension Plans				Postretirement
	US		International		Medical Plan
2024	$	229	$	405	$	47
2025	$	230	$	419	$	48
2026	$	231	$	432	$	49
2027	$	232	$	449	$	50
2028	$	234	$	454	$	52
2029-2033	$	1,178	$	2,494	$	291