v3.26.1
Business Segment and Geographic Information
 3 Months Ended
Mar. 31, 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 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.
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
March 31,
Millions of dollars
2026
2025
Revenue:
Completion and Production
$3,016
$3,120
Drilling and Evaluation
2,386
2,297
Total revenue
$5,402
$5,417
Operating income:
Completion and Production
$439
$531
Drilling and Evaluation
351
352
Total operations
790
883
Corporate and other (a)
(69)
(66)
SAP S4 upgrade expense
(42)
(30)
Impairments and other charges (b)
—
(356)
Total operating income
$679
$431
Interest expense, net of interest income
$(82)
$(86)
Other, net
(28)
(39)
Income before income taxes
$569
$306
Capital expenditures:
Completion and Production
$109
$178
Drilling and Evaluation
83
124
Total capital expenditures
$192
$302
Depreciation, depletion, and amortization:
Completion and Production
$163
$152
Drilling and Evaluation
126
121
Corporate and other
6
4
Total depreciation, depletion, and amortization
$295
$277
(a)
Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives,
and operating lease assets, and includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)
For the three months ended March 31, 2025, the amount includes a $201 million charge attributable to Completion and
Production, an $85 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.
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
March 31,
2026
Millions of dollars
Completion and
Production
Drilling and
Evaluation
Segment operating expenses:
Cost of products, materials, and supplies
$1,271
$913
Compensation
479
487
Depreciation, depletion, and amortization
163
126
Other
664
509
Total segment operating expenses
$2,577
$2,035
Three Months Ended
March 31,
2025
Millions of dollars
Completion and
Production
Drilling and
Evaluation
Segment operating expenses:
Cost of products, materials, and supplies
$1,300
$882
Compensation
474
467
Depreciation, depletion, and amortization
152
121
Other
663
475
Total segment operating expenses
$2,589
$1,945
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
March 31,
2026
December 31,
2025
Total assets:
Completion and Production (a)
$10,621
$10,492
Drilling and Evaluation (a)
8,087
7,870
Corporate and other (b)
6,434
6,648
Total assets
$25,142
$25,010
(a)
Assets associated with specific segments primarily include receivables, inventories, property, plant, and equipment, operating lease right-of-
use assets, equity in and advances to related companies, and goodwill.
(b)
Includes primarily cash and equivalents and deferred tax assets.