v3.26.3
Business Segment and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Business Segment and Geographic Information Business Segment Information
We 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 is included within cost of services and cost of sales on our statements
of operations, which is part of operating income of the applicable segment.
Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief
Executive Officer. Throughout the year, our CODM assesses the performance of the two segments based on segment revenue
and operating income, in comparison with forecast and plan and overall results, to make capital and resource allocation
decisions.
The following table presents information on our business segments.
Three Months Ended
Nine Months Ended
September 30,
September 30,
Millions of dollars
2026
2025
2026
2025
Revenue:
Completion and Production
$3,089
$3,223
$9,307
$9,514
Drilling and Evaluation
2,614
2,377
7,512
7,013
Total revenue
$5,703
$5,600
$16,819
$16,527
Operating income:
Completion and Production
$457
$514
$1,370
$1,558
Drilling and Evaluation
391
348
1,080
1,012
Total operations
848
862
2,450
2,570
Corporate and other (a)
(75)
(64)
(227)
(196)
SAP S4 upgrade expense
(42)
(50)
(130)
(112)
Impairments and other charges (b)
(107)
(392)
(12)
(748)
Total operating income
$624
$356
$2,081
$1,514
Interest expense, net of interest income
$(84)
$(88)
$(249)
$(266)
Other, net (c)
(27)
(49)
(86)
(112)
Income before income taxes
$513
$219
$1,746
$1,136
Capital expenditures:
Completion and Production
$150
$163
$405
$546
Drilling and Evaluation
116
98
287
371
Corporate and other
—
—
1
—
Total capital expenditures
$266
$261
$693
$917
Depreciation, depletion, and amortization:
Completion and Production
$161
$156
$486
$462
Drilling and Evaluation
126
123
378
368
Corporate and other
9
6
23
16
Total depreciation, depletion, and amortization
$296
$285
$887
$846
(a)
The amount included certain expenses not attributable to a business segment, such as costs related to certain support functions, corporate
executives, and operating lease assets, and included amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)
For the three months ended September 30, 2026, the amount included a $38 million charge attributable to Completion and Production, a
$54 million charge attributable to Drilling and Evaluation, and a $15 million charge attributable to Corporate and other. For the nine months
ended September 30, 2026, the amount included a $45 million credit attributable to Completion and Production, a $38 million charge attributable
to Drilling and Evaluation, and a $19 million charge attributable to Corporate and other. For the three months ended September 30, 2025, the
amount included a $252 million charge attributable to Completion and Production and a $140 million charge attributable to Drilling and
Evaluation. For the nine months ended September 30, 2025, the amount included a $453 million charge attributable to Completion and
Production, a $225 million charge attributable to Drilling and Evaluation, and a $70 million charge attributable to Corporate and other. See Notes
to Condensed Consolidated Financial Statements, Note 2 for further discussion on impairments and other charges.
(c)
During the three and nine months ended September 30, 2025, we incurred a charge of $23 million due to the impairment of an investment in
Argentina.
The following table presents significant segment expenses, which represent the difference between segment revenue
and segment operating income and are regularly reviewed by our CODM.
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2026
Millions of dollars
Completion and
Production
Drilling and
Evaluation
Completion and
Production
Drilling and
Evaluation
Segment operating expenses:
Cost of products, materials, and supplies
$1,316
$1,055
$3,959
$2,996
Compensation
472
516
1,422
1,508
Depreciation, depletion, and amortization
161
126
486
378
Other
683
526
2,070
1,550
Total segment operating expenses
$2,632
$2,223
$7,937
$6,432
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2025
Millions of dollars
Completion and
Production
Drilling and
Evaluation
Completion and
Production
Drilling and
Evaluation
Segment operating expenses:
Cost of products, materials, and supplies
$1,361
$911
$3,980
$2,715
Compensation
492
489
1,449
1,435
Depreciation, depletion, and amortization
156
123
462
368
Other
700
506
2,065
1,483
Total segment operating expenses
$2,709
$2,029
$7,956
$6,001
Other segment operating expenses primarily consist of maintenance, overhead allocations, facilities cost, and other
miscellaneous costs.
The following table presents total assets by segment.
Millions of dollars
September 30,
2026
December 31,
2025
Total assets:
Completion and Production (a)
$10,971
$10,492
Drilling and Evaluation (a)
8,662
7,870
Corporate and other (b)
6,440
6,648
Total assets
$26,073
$25,010
(a)
Assets associated with specific segments primarily included receivables, inventories, property, plant, and equipment, operating lease right-
of-use assets, equity in and advances to related companies, and goodwill.
(b)
The amount included primarily cash and equivalents and deferred tax assets.