Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

Income before taxes subject to United States and non-United States income taxes was as follows:

(Stated in millions)
	2024		2023		2022
United States	$	641	$	355	$	600
Outside United States		5,031		4,927		3,671
	$	5,672	$	5,282	$	4,271

SLB recorded net pretax charges of $540 million in 2024 ($188 million of charges in the US and $352 million of net charges outside the US); $110 million in 2023 ($2 million of net credits in the US and $112 million of charges outside the US); and $347 million in 2022 ($379 million of net credits in the US and $32 million of net charges outside the US). These charges and credits are included in the table above and are more fully described in Note 3 – Charges and Credits.

The components of net deferred tax liabilities were as follows:

(Stated in millions)
	2024			2023
Intangible assets	$	(788	)	$	(844	)
Net operating losses		123			214
Fixed assets, net		173			190
Research and development credits		158			162
Capitalized research and development costs		216			155
Pension and other postretirement benefits		(62	)		(94	)
Other, net		113			77
	$	(67	)	$	(140	)

Approximately $97 million of the $123 million deferred tax asset relating to net operating losses at December 31, 2024 can be carried forward indefinitely. The majority of the remaining balance expires at various dates between 2037 and 2042.

The deferred tax balance at December 31, 2024 and 2023 was net of valuation allowances relating to the following:

(Stated in millions)
	2024		2023
US foreign tax credits	$	162	$	188
Net operating losses	$	62	$	106

The vast majority of the $162 million of US foreign tax credits will expire by 2026.

The components of Tax expense were as follows:

(Stated in millions)
	2024			2023			2022
Current:
United States-Federal	$	10		$	(23	)	$	2
United States-State		7			5			3
Outside United States		1,117			997			813
		1,134			979			818
Deferred:
United States-Federal	$	88		$	(77	)	$	98
United States-State		2			6			13
Outside United States		(61	)		104			(70	)
Valuation allowance		(70	)		(5	)		(80	)
		(41	)		28			(39	)
	$	1,093		$	1,007		$	779

A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:

	2024			2023			2022
US federal statutory rate		21	%		21	%		21	%
Charges and credits (See Note 3)		-			-			(1	)
Change in valuation allowance		(1	)		-			(2	)
Other		(1	)		(2	)		-
		19	%		19	%		18	%

A number of the jurisdictions in which SLB operates have tax laws that are not fully defined and are evolving. SLB’s tax filings are subject to regular audit by the tax authorities. These audits may result in assessments for additional taxes that are resolved with the tax authorities or, potentially, through the courts. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the conclusion of these audits. Due to the uncertain and complex application of tax regulations, the ultimate resolution of audits may result in liabilities which could be materially different from these estimates.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:

(Stated in millions)
	2024			2023			2022
Balance at beginning of year	$	783		$	893		$	1,001
Additions based on tax positions related to the current year		79			66			41
Additions for tax positions of prior years		150			91			64
Impact of changes in exchange rates		(23	)		(25	)		(38	)
Settlements with tax authorities		(75	)		(36	)		(37	)
Reductions for tax positions of prior years		(104	)		(176	)		(94	)
Reductions due to the lapse of statute of limitations		(95	)		(30	)		(44	)
	$	715		$	783		$	893

The amounts above exclude accrued interest and penalties of $116 million at December 31, 2024 and $155 million at December 31, 2023. SLB classifies interest and penalties relating to uncertain tax positions within Tax expense in the Consolidated Statement of Income.

The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which SLB operates:

Ecuador	2020 - 2024
Mexico	2019 - 2024
Norway	2019 - 2024
Russia	2022 - 2024
Saudi Arabia	2019 - 2024
United Kingdom	2020 - 2024
United States	2021 - 2024