What is the significance of the $12.7 billion charge?

The $12.7 billion charge represents a significant noncash impairment of the company's goodwill, intangible assets, and fixed assets. This means the carrying value of these assets on SLB's balance sheet has been reduced to reflect their current market value, primarily due to challenging market conditions in the oilfield services industry during the third quarter of 2019. Importantly, this charge does not involve any actual cash outflow from the company.

Will this impairment charge affect SLB's cash flow?

No, the filing explicitly states that this $12.7 billion charge is primarily noncash and will not result in any material cash expenditures. Therefore, it should not directly impact SLB's operating cash flow or liquidity.

Where can I find more details about SLB's third-quarter 2019 performance?

More detailed information regarding SLB's third-quarter 2019 financial results and the context for these impairment charges can be found in the 'Third-Quarter 2019 Earnings Release' furnished as Exhibit 99 to this 8-K filing. This document is incorporated by reference and provides further insights into operational performance and market dynamics.

What does it mean that the information is 'furnished' and not 'filed'?

When information is furnished under Item 2.02 or 7.01 of an 8-K, it means the company is providing the information to the public but is not subject to the same liability or reporting requirements as if it were formally 'filed' with the SEC under Section 18 of the Securities Exchange Act of 1934. While it's not considered 'filed' for legal liability purposes, investors should still consider this information as material and relevant to their investment decisions, as it pertains to financial results and significant corporate events.

SLB 8-K: Earnings & Results, Financial Events & More

Summary

SLB LIMITED/NV (SLB) filed an 8-K on October 18, 2019, primarily disclosing material noncash impairment charges for the third quarter of 2019. The company announced a significant pretax charge of $12.7 billion, primarily related to the impairment of goodwill, intangible assets, and fixed assets. This charge was predominantly driven by prevailing market conditions and does not involve any material cash expenditures. Investors should note that this charge reflects a revaluation of assets due to market dynamics rather than an operational cash outflow. The filing also incorporates by reference the Third-Quarter 2019 Earnings Release, which provides further details on the company's financial performance and condition. While the earnings release information is furnished and not formally 'filed' under Section 18 of the Exchange Act, it offers crucial insights into the company's operational results and strategic outlook. Investors are advised to review the earnings release for a comprehensive understanding of SLB's third-quarter performance and the factors influencing these impairment charges.

Key Highlights

1SLB recorded a substantial pretax impairment charge of $12.7 billion in Q3 2019.
2The impairment is primarily noncash, affecting goodwill, intangible assets, and fixed assets.
3The charge was driven by adverse market conditions impacting the business.
4No material cash expenditures are associated with this impairment charge.
5The company furnished its Third-Quarter 2019 Earnings Release as an exhibit.
6Information in the earnings release is incorporated by reference but not deemed 'filed' under Section 18 of the Exchange Act.

SLB LIMITED/NV 8-K Report, Financial Results (Oct 18, 2019)

Summary

Key Highlights

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