SLB LIMITED/NV Income Taxes Disclosure
13. Income Taxes
Income before taxes subject to United States and non-United States income taxes was as follows:
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
$ |
(68 |
) |
|
$ |
641 |
|
|
$ |
355 |
|
Outside United States |
|
4,359 |
|
|
|
5,031 |
|
|
|
4,927 |
|
|
$ |
4,291 |
|
|
$ |
5,672 |
|
|
$ |
5,282 |
|
SLB recorded net pretax charges of $1.107 billion in 2025 ($565 million of charges in the US and $542 million of net charges outside the US); $540 million in 2024 ($188 million of charges in the US and $352 million of net charges outside the US); and $110 million in 2023 ($2 million of net credits in the US and $112 million of 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) |
|
||||||
|
|
|
|
|
|
||
|
2025 |
|
|
2024 |
|
||
Intangible assets |
$ |
(1,208 |
) |
|
$ |
(758 |
) |
Net operating losses |
|
153 |
|
|
|
123 |
|
Fixed assets, net |
|
106 |
|
|
|
173 |
|
Research and development credits |
|
87 |
|
|
|
158 |
|
Capitalized research and development costs |
|
255 |
|
|
|
216 |
|
Pension and other postretirement benefits |
|
(71 |
) |
|
|
(62 |
) |
Investments in non-US subsidiaries |
|
(194 |
) |
|
|
(69 |
) |
Foreign tax credits |
|
63 |
|
|
|
- |
|
Other, net |
|
165 |
|
|
|
152 |
|
|
$ |
(644 |
) |
|
$ |
(67 |
) |
Approximately $105 million of the $153 million deferred tax asset relating to net operating losses at December 31, 2025 can be carried forward indefinitely.
The deferred tax balance at December 31, 2025 and 2024 was net of valuation allowances relating to the following:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
2025 |
|
|
2024 |
|
||
Foreign tax credits |
$ |
69 |
|
|
$ |
162 |
|
Net operating losses |
$ |
40 |
|
|
$ |
62 |
|
The components of Tax expense were as follows:
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Current: |
|
|
|
|
|
|
|
|
|||
United States-Federal |
$ |
7 |
|
|
$ |
10 |
|
|
$ |
(23 |
) |
United States-State |
|
2 |
|
|
|
7 |
|
|
|
5 |
|
Outside United States |
|
1,110 |
|
|
|
1,117 |
|
|
|
997 |
|
|
|
1,119 |
|
|
|
1,134 |
|
|
|
979 |
|
Deferred: |
|
|
|
|
|
|
|
|
|||
United States-Federal |
$ |
(64 |
) |
|
$ |
88 |
|
|
$ |
(77 |
) |
United States-State |
|
1 |
|
|
|
2 |
|
|
|
6 |
|
Outside United States |
|
(60 |
) |
|
|
(61 |
) |
|
|
104 |
|
United States - Valuation allowance |
|
(133 |
) |
|
|
(26 |
) |
|
|
(5 |
) |
Outside United States - Valuation allowance |
|
(23 |
) |
|
|
(44 |
) |
|
|
- |
|
|
|
(279 |
) |
|
|
(41 |
) |
|
|
28 |
|
|
$ |
840 |
|
|
$ |
1,093 |
|
|
$ |
1,007 |
|
A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||||||||
|
Amount |
|
Percentage |
|
|
Amount |
|
Percentage |
|
|
Amount |
|
Percentage |
|
||||||
US federal income tax |
$ |
901 |
|
|
21.0 |
% |
|
$ |
1,191 |
|
|
21.0 |
% |
|
$ |
1,109 |
|
|
21.0 |
% |
Non-US tax effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United Arab Emirates |
|
(51 |
) |
|
(1.2 |
) |
|
|
(47 |
) |
|
(0.8 |
) |
|
|
(40 |
) |
|
(0.8 |
) |
Saudi Arabia |
|
(39 |
) |
|
(0.9 |
) |
|
|
(85 |
) |
|
(1.5 |
) |
|
|
(101 |
) |
|
(1.9 |
) |
Norway |
|
20 |
|
|
0.5 |
|
|
|
(65 |
) |
|
(1.1 |
) |
|
|
(41 |
) |
|
(0.8 |
) |
Ecuador: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividend withholding tax |
|
61 |
|
|
1.4 |
|
|
|
30 |
|
|
0.5 |
|
|
|
106 |
|
|
2.0 |
|
Other |
|
8 |
|
|
0.2 |
|
|
|
83 |
|
|
1.5 |
|
|
|
50 |
|
|
0.9 |
|
British Virgin Island |
|
31 |
|
|
0.7 |
|
|
|
61 |
|
|
1.1 |
|
|
|
93 |
|
|
1.8 |
|
Russia |
|
16 |
|
|
0.4 |
|
|
|
15 |
|
|
0.3 |
|
|
|
59 |
|
|
1.1 |
|
Other jurisdictions |
|
65 |
|
|
1.5 |
|
|
|
26 |
|
|
0.5 |
|
|
|
(60 |
) |
|
(1.1 |
) |
Tax credits |
|
(33 |
) |
|
(0.8 |
) |
|
|
(21 |
) |
|
(0.4 |
) |
|
|
(20 |
) |
|
(0.4 |
) |
Changes in valuation allowance |
|
(133 |
) |
|
(3.1 |
) |
|
|
(26 |
) |
|
(0.5 |
) |
|
|
(5 |
) |
|
(0.1 |
) |
Nontaxable or nondeductible items |
|
4 |
|
|
0.1 |
|
|
|
(34 |
) |
|
(0.6 |
) |
|
|
14 |
|
|
0.3 |
|
Changes in unrecognized tax benefits |
|
(5 |
) |
|
(0.1 |
) |
|
|
(26 |
) |
|
(0.5 |
) |
|
|
(75 |
) |
|
(1.4 |
) |
Other adjustments |
|
(5 |
) |
|
(0.1 |
) |
|
|
(9 |
) |
|
(0.2 |
) |
|
|
(82 |
) |
|
(1.6 |
) |
|
$ |
840 |
|
|
19.6 |
% |
|
$ |
1,093 |
|
|
19.3 |
% |
|
$ |
1,007 |
|
|
19.0 |
% |
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) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Balance at beginning of year |
$ |
715 |
|
|
$ |
783 |
|
|
$ |
893 |
|
Additions based on tax positions related to the current year |
|
78 |
|
|
|
79 |
|
|
|
66 |
|
Additions for tax positions of prior years |
|
75 |
|
|
|
150 |
|
|
|
91 |
|
Additions related to acquisitions |
|
73 |
|
|
|
- |
|
|
|
- |
|
Impact of changes in exchange rates |
|
20 |
|
|
|
(23 |
) |
|
|
(25 |
) |
Settlements with tax authorities |
|
(28 |
) |
|
|
(75 |
) |
|
|
(36 |
) |
Reductions for tax positions of prior years |
|
(93 |
) |
|
|
(104 |
) |
|
|
(176 |
) |
Reductions due to the lapse of statute of limitations |
|
(34 |
) |
|
|
(95 |
) |
|
|
(30 |
) |
|
$ |
806 |
|
|
$ |
715 |
|
|
$ |
783 |
|
The amounts above exclude accrued interest and penalties of $132 million at December 31, 2025 and $116 million at December 31, 2024. 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 |
|
Mexico |
|
Norway |
|
Russia |
|
Saudi Arabia |
|
United Kingdom |
|
United States |
Cash paid for income taxes was as follows:
(Stated in millions) |
|||||
|
|
|
|
|
|
|
2025 |
|
2024 |
|
2023 |
US Federal |
$44 |
|
$10 |
|
$13 |
US State |
11 |
|
1 |
|
8 |
Ecuador |
210 |
|
224 |
|
210 |
Saudi Arabia |
70 |
|
101 |
|
* |
Mexico |
* |
|
* |
|
126 |
Other |
863 |
|
804 |
|
703 |
|
$1,198 |
|
$1,140 |
|
$1,060 |
* Amount of income taxes paid during the year did not meet the 5% disaggregation threshold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 23, 2026 | Showing above |
| 2024 | Jan 22, 2025 | |
| 2023 | Jan 24, 2024 | |
| 2022 | Jan 25, 2023 | |
| 2021 | Jan 26, 2022 | |
| 2020 | Jan 27, 2021 | |
| 2019 | Jan 22, 2020 | |
| 2018 | Jan 23, 2019 | |
| 2017 | Jan 24, 2018 | |
| 2016 | Jan 25, 2017 | |
| 2015 | Jan 27, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.