Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document Document And Entity Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Trading Symbol | 'SLB |
Entity Registrant Name | 'SCHLUMBERGER LTD /NV/ |
Entity Central Index Key | '0000087347 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,296,436,308 |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Revenue | $12,054 | $11,182 | $23,294 | $21,752 | ||||
Interest & other income | 64 | 30 | 141 | 63 | ||||
Gain on formation of OneSubsea | ' | 1,028 | ' | 1,028 | ||||
Expenses | ' | ' | ' | ' | ||||
Cost of revenue | 9,269 | 8,712 | 18,018 | 17,118 | ||||
Research & engineering | 309 | 293 | 593 | 585 | ||||
General & administrative | 123 | 100 | 228 | 196 | ||||
Impairment & other | ' | 364 | ' | 456 | ||||
Interest | 90 | 98 | 193 | 197 | ||||
Income from continuing operations before taxes | 2,327 | 2,673 | 4,403 | 4,291 | ||||
Taxes on income | 506 | 449 | 974 | 855 | ||||
Income from continuing operations | 1,821 | 2,224 | 3,429 | 3,436 | ||||
Loss from discontinued operations | -205 | -124 | -205 | -69 | ||||
Net income | 1,616 | 2,100 | 3,224 | 3,367 | ||||
Net income attributable to noncontrolling interests | 21 | 5 | 37 | 13 | ||||
Net income attributable to Schlumberger | 1,595 | 2,095 | 3,187 | 3,354 | ||||
Schlumberger amounts attributable to: | ' | ' | ' | ' | ||||
Income from continuing operations | 1,800 | 2,219 | 3,392 | 3,423 | ||||
Loss from discontinued operations | -205 | -124 | -205 | -69 | ||||
Net income | $1,595 | $2,095 | $3,187 | $3,354 | ||||
Basic earnings per share of Schlumberger: | ' | ' | ' | ' | ||||
Income from continuing operations | $1.38 | $1.67 | $2.60 | $2.58 | ||||
Loss from discontinued operations | ($0.16) | ($0.09) | ($0.16) | ($0.05) | ||||
Net income | $1.23 | [1] | $1.58 | [1] | $2.45 | [1] | $2.52 | [1] |
Diluted earnings per share of Schlumberger: | ' | ' | ' | ' | ||||
Income from continuing operations | $1.37 | $1.66 | $2.58 | $2.56 | ||||
Loss from discontinued operations | ($0.16) | ($0.09) | ($0.16) | ($0.05) | ||||
Net income | $1.21 | [1] | $1.57 | [1] | $2.42 | [1] | $2.51 | [1] |
Average shares outstanding: | ' | ' | ' | ' | ||||
Basic | 1,300 | 1,327 | 1,303 | 1,329 | ||||
Assuming dilution | 1,315 | 1,336 | 1,316 | 1,339 | ||||
[1] | Amounts may not add due to rounding. |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $1,616 | $2,100 | $3,224 | $3,367 |
Currency translation adjustments | ' | ' | ' | ' |
Unrealized net change arising during the period | 58 | -157 | -30 | -234 |
Marketable securities | ' | ' | ' | ' |
Unrealized gain arising during the period | 19 | 11 | 30 | 83 |
Derivatives | ' | ' | ' | ' |
Net derivatives gain (loss) on hedge transactions | -3 | 49 | 13 | -104 |
Reclassification to net income of net realized (gain) loss (see Note 11) | 9 | -34 | 6 | 45 |
Actuarial loss | ' | ' | ' | ' |
Actuarial loss arising during the period | ' | -6 | ' | -6 |
Amortization to net income of net actuarial loss (see Note 15) | 59 | 76 | 100 | 152 |
Prior service cost | ' | ' | ' | ' |
Amortization to net income of net prior service cost (see Note 15) | 24 | 31 | 56 | 63 |
Income taxes on pension and other postretirement benefit plans | -10 | -15 | -20 | -31 |
Comprehensive income | 1,772 | 2,055 | 3,379 | 3,335 |
Comprehensive income attributable to noncontrolling interests | 21 | 5 | 37 | 13 |
Comprehensive income attributable to Schlumberger | $1,751 | $2,050 | $3,342 | $3,322 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash | $2,267 | $3,472 |
Short-term investments | 4,432 | 4,898 |
Receivables less allowance for doubtful accounts (2014 - $407; 2013 - $384) | 12,251 | 11,497 |
Inventories | 4,770 | 4,603 |
Deferred taxes | 235 | 288 |
Other current assets | 1,459 | 1,467 |
Current assets total | 25,414 | 26,225 |
Fixed Income Investments, held to maturity | 480 | 363 |
Investments in Affiliated Companies | 3,342 | 3,317 |
Fixed Assets less accumulated depreciation | 15,743 | 15,096 |
Multiclient Seismic Data | 727 | 667 |
Goodwill | 15,220 | 14,706 |
Intangible Assets | 4,738 | 4,709 |
Other Assets | 2,422 | 2,017 |
Total Assets | 68,086 | 67,100 |
Current Liabilities | ' | ' |
Accounts payable and accrued liabilities | 8,692 | 8,837 |
Estimated liability for taxes on income | 1,529 | 1,490 |
Long-term debt - current portion | 837 | 1,819 |
Short-term borrowings | 668 | 964 |
Dividends payable | 525 | 415 |
Current Liabilities Total | 12,251 | 13,525 |
Long-term Debt | 11,740 | 10,393 |
Postretirement Benefits | 699 | 670 |
Deferred Taxes | 1,656 | 1,708 |
Other Liabilities | 1,038 | 1,169 |
Total Liabilities | 27,384 | 27,465 |
Equity | ' | ' |
Common stock | 12,338 | 12,192 |
Treasury stock | -9,514 | -8,135 |
Retained earnings | 40,111 | 37,966 |
Accumulated other comprehensive loss | -2,399 | -2,554 |
Schlumberger stockholders' equity | 40,536 | 39,469 |
Noncontrolling interests | 166 | 166 |
Total equity | 40,702 | 39,635 |
Liabilities and stockholders equity | $68,086 | $67,100 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Allowance for doubtful accounts on receivable | $407 | $384 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Cash flows from operating activities: | ' | ' | ||
Net income | $3,224 | $3,367 | ||
Add: Loss from discontinued operations | 205 | 69 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ||
Gain on formation of OneSubsea | ' | -1,028 | ||
Impairment of equity method investments and currency devaluation loss in Venezuela | ' | 456 | ||
Depreciation and amortization | 1,997 | [1] | 1,903 | [1] |
Pension and other postretirement benefits expense | 190 | 255 | ||
Stock-based compensation expense | 162 | 168 | ||
Pension and other postretirement benefits funding | -127 | -231 | ||
Earnings of companies carried at equity, less dividends received | -90 | -26 | ||
Change in assets and liabilities: | ' | ' | ||
Increase in receivables | -590 | [2] | -511 | [2] |
Increase in inventories | -90 | [2] | -237 | [2] |
Decrease in other current assets | 82 | [2] | 20 | [2] |
Increase in other assets | -60 | [2] | -75 | [2] |
Decrease in accounts payable and accrued liabilities | -515 | [2] | -389 | [2] |
Increase (decrease) in liability for taxes on income | 23 | [2] | -96 | [2] |
(Decrease) increase in other liabilities | -204 | [2] | 19 | [2] |
Other | 12 | [2] | 131 | [2] |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,219 | 3,795 | ||
Cash flows from investing activities: | ' | ' | ||
Capital expenditures | -1,786 | -1,800 | ||
SPM investments | -377 | -367 | ||
Multiclient seismic data capitalized | -154 | -222 | ||
Business acquisitions and investments, net of cash acquired | -471 | -717 | ||
Sale of investments, net | 349 | 850 | ||
Other | 3 | 91 | ||
NET CASH USED IN INVESTING ACTIVITIES | -2,436 | -2,165 | ||
Cash flows from financing activities: | ' | ' | ||
Dividends paid | -932 | -781 | ||
Proceeds from employee stock purchase plan | 134 | 126 | ||
Proceeds from exercise of stock options | 358 | 63 | ||
Stock repurchase program | -2,074 | -692 | ||
Proceeds from issuance of long-term debt | 1,979 | 1,013 | ||
Repayment of long-term debt | -2,104 | -453 | ||
Net decrease in short-term borrowings | -302 | -152 | ||
Other | -32 | ' | ||
NET CASH USED IN FINANCING ACTIVITIES | -2,973 | -876 | ||
Cash flows used in discontinued operations - operating activities | ' | -33 | ||
Cash flows used in discontinued operations - investing activities | ' | -28 | ||
Cash flows used in discontinued operations | ' | -61 | ||
Net (decrease) increase in cash before translation effect | -1,190 | 693 | ||
Translation effect on cash | -15 | -12 | ||
Cash, beginning of period | 3,472 | 1,905 | ||
Cash, end of period | $2,267 | $2,586 | ||
[1] | Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and SPM investments. | |||
[2] | Net of the effect of business acquisitions and divestitures. |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Common Stock Issued | Common Stock In Treasury | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Millions | ||||||
Balance at Dec. 31, 2012 | $34,858 | $11,912 | ($6,160) | $32,887 | ($3,888) | $107 |
Net income | 3,367 | ' | ' | 3,354 | ' | 13 |
Currency translation adjustments | -234 | ' | ' | ' | -234 | ' |
Changes in unrealized gain on marketable securities | 83 | ' | ' | ' | 83 | ' |
Changes in fair value of derivatives | -59 | ' | ' | ' | -59 | ' |
Pension and other postretirement benefit plans | 178 | ' | ' | ' | 178 | ' |
Shares sold to optionees, less shares exchanged | 63 | -18 | 81 | ' | ' | ' |
Vesting of restricted stock | ' | -43 | 43 | ' | ' | ' |
Shares issued under employee stock purchase plan | 127 | 5 | 122 | ' | ' | ' |
Stock repurchase program | -692 | ' | -692 | ' | ' | ' |
Stock-based compensation expense | 168 | 168 | ' | ' | ' | ' |
Dividends declared | -832 | ' | ' | -832 | ' | ' |
Other | 21 | 1 | 1 | ' | ' | 19 |
Balance at Jun. 30, 2013 | 37,048 | 12,025 | -6,605 | 35,409 | -3,920 | 139 |
Balance at Dec. 31, 2013 | 39,635 | 12,192 | -8,135 | 37,966 | -2,554 | 166 |
Balance, shares at Dec. 31, 2013 | 1,307 | 1,434 | -127 | ' | ' | ' |
Net income | 3,224 | ' | ' | 3,187 | ' | 37 |
Currency translation adjustments | -30 | ' | ' | ' | -30 | ' |
Changes in unrealized gain on marketable securities | 30 | ' | ' | ' | 30 | ' |
Changes in fair value of derivatives | 19 | ' | ' | ' | 19 | ' |
Pension and other postretirement benefit plans | 136 | ' | ' | ' | 136 | ' |
Shares sold to optionees, less shares exchanged | 358 | -12 | 370 | ' | ' | ' |
Vesting of restricted stock | ' | -54 | 54 | ' | ' | ' |
Shares issued under employee stock purchase plan | 134 | 6 | 128 | ' | ' | ' |
Stock repurchase program | -2,074 | ' | -2,074 | ' | ' | ' |
Stock-based compensation expense | 162 | 162 | ' | ' | ' | ' |
Dividends declared | -1,042 | ' | ' | -1,042 | ' | ' |
Shares issued for acquisition | 213 | 72 | 141 | ' | ' | ' |
Other | -63 | -28 | 2 | ' | ' | -37 |
Shares sold to optionees, less shares exchanged, shares | 6 | ' | 6 | ' | ' | ' |
Vesting of restricted stock, shares | 1 | ' | 1 | ' | ' | ' |
Shares issued under employee stock purchase plan, shares | 2 | ' | 2 | ' | ' | ' |
Shares issued for acquisition, shares | 2 | ' | 2 | ' | ' | ' |
Stock repurchase program, shares | -22 | ' | -22 | ' | ' | ' |
Balance at Jun. 30, 2014 | $40,702 | $12,338 | ($9,514) | $40,111 | ($2,399) | $166 |
Balance, shares at Jun. 30, 2014 | 1,296 | 1,434 | -138 | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_EQUI1
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (Retained Earnings, USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Retained Earnings | ' | ' |
Dividends declared, per share | $0.80 | $0.63 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (“Schlumberger”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Schlumberger management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the six-month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014. The December 31, 2013 balance sheet information has been derived from the Schlumberger 2013 financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Schlumberger Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on January 31, 2014. | |
Certain prior year items have been reclassified to conform to the current year presentation. During the second quarter of 2014, Schlumberger revised its Consolidated Statement of Cash Flows to present certain cash outflows relating to Schlumberger Production Management (“SPM”) activities as a separate line item within investing activities, referred to as “SPM investments.” Schlumberger historically presented such cash outflows as an operating activity. This change is not considered material to prior periods. | |
New Accounting Pronouncement | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. Schlumberger is required to adopt this ASU on January 1, 2017. Schlumberger does not expect this ASU to have a material impact on its consolidated financial statements. | |
Charges_and_Credits
Charges and Credits | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Charges and Credits | ' | |||||||||||||||
2. Charges and Credits | ||||||||||||||||
Schlumberger recorded the following charges and credits in continuing operations during the first six months of 2013: | ||||||||||||||||
Second quarter 2013: | ||||||||||||||||
· | Schlumberger recorded a pretax and after-tax gain of $1.028 billion as a result of the deconsolidation of its subsea business in connection with the formation of the OneSubsea joint venture with Cameron International Corporation (“Cameron”). Refer to Note 4 – Acquisitions for further details. | |||||||||||||||
· | Schlumberger recorded a $222 million pretax ($203 million after-tax) impairment charge relating to an investment in a company involved in developing drilling-related technology and a $142 million pretax and after-tax impairment charge relating to an investment in a contract drilling business. | |||||||||||||||
First quarter 2013: | ||||||||||||||||
· | Although the functional currency of Schlumberger’s operations in Venezuela is the US dollar, a portion of the transactions are denominated in local currency. In February 2013, Venezuela’s currency was devalued from the prior exchange rate of 4.3 Bolivar Fuertes per US dollar to 6.3 Bolivar Fuertes per US dollar. As a result of this devaluation, Schlumberger recorded a pretax and after-tax foreign currency loss of $92 million during the first quarter of 2013. | |||||||||||||||
The following is a summary of the charges recorded during the first six months of 2013: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Pretax | Tax | Net | Classification | |||||||||||||
Gain on formation of OneSubsea joint venture | $ | (1,028 | ) | $ | — | $ | (1,028 | ) | Gain on formation of OneSubsea | |||||||
Impairment of equity-method investments | 364 | 19 | 345 | Impairment & other | ||||||||||||
Currency devaluation loss in Venezuela | 92 | $ | — | 92 | Impairment & other | |||||||||||
$ | (572 | ) | $ | 19 | $ | (591 | ) | |||||||||
There were no charges or credits recorded in continuing operations during the first six months of 2014. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||||||
3. Earnings Per Share | ||||||||||||||||||||||||
The following is a reconciliation from basic earnings per share of Schlumberger to diluted earnings per share from continuing operations of Schlumberger: | ||||||||||||||||||||||||
(Stated in millions, except per share amounts) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Schlumberger Income from Continuing Operations | Average Shares Outstanding | Earnings per Share from Continuing Operations | Schlumberger Income from Continuing Operations | Average | Earnings per Share from Continuing Operations | |||||||||||||||||||
Shares Outstanding | ||||||||||||||||||||||||
Second Quarter | ||||||||||||||||||||||||
Basic | $ | 1,800 | 1,300 | $ | 1.38 | $ | 2,219 | 1,327 | $ | 1.67 | ||||||||||||||
Assumed exercise of stock options | — | 11 | — | 5 | ||||||||||||||||||||
Unvested restricted stock | — | 4 | — | 4 | ||||||||||||||||||||
Diluted | $ | 1,800 | 1,315 | $ | 1.37 | $ | 2,219 | 1,336 | $ | 1.66 | ||||||||||||||
Schlumberger Income from Continuing Operations | Average Shares Outstanding | Earnings per Share from Continuing Operations | Schlumberger Income from Continuing Operations | Average | Earnings per Share from Continuing Operations | |||||||||||||||||||
Shares Outstanding | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Basic | $ | 3,392 | 1,303 | $ | 2.6 | $ | 3,423 | 1,329 | $ | 2.58 | ||||||||||||||
Assumed exercise of stock options | — | 9 | — | 6 | ||||||||||||||||||||
Unvested restricted stock | — | 4 | — | 4 | ||||||||||||||||||||
Diluted | $ | 3,392 | 1,316 | $ | 2.58 | $ | 3,423 | 1,339 | $ | 2.56 | ||||||||||||||
The number of outstanding options to purchase shares of Schlumberger common stock which were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, was as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Second Quarter | — | 13 | ||||||||||||||||||||||
Six Months | 5 | 13 | ||||||||||||||||||||||
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2014 | |
Acquisitions | ' |
4. Acquisitions | |
On June 30, 2013, Schlumberger and Cameron completed the formation of OneSubsea, a joint venture to manufacture and develop products, systems and services for the subsea oil and gas market. Schlumberger and Cameron each contributed all of their respective subsea businesses to the joint venture and Schlumberger made a $600 million cash payment to Cameron. Schlumberger owns 40% of OneSubsea and accounts for this investment under the equity method. Schlumberger recognized a pretax and after-tax gain of $1.028 billion, which is classified as Gain on formation of OneSubsea in the Consolidated Statement of Income, as a result of the deconsolidation of its subsea business. This gain is equal to the difference between the fair value of the Schlumberger subsea business, which was determined based on the present value of its estimated future cash flows, and its carrying value at the time of closing. | |
During the first six months of 2014 and 2013, Schlumberger made certain other acquisitions and investments, none of which were significant on an individual basis, for cash payments, net of cash acquired, of $471 million and $117 million, respectively. Additionally, during the first six months of 2014, Schlumberger issued 2.1 million shares of its common stock, valued at $213 million, in connection with an acquisition. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
5. Inventories | ||||||||
A summary of inventories follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
Raw materials & field materials | $ | 2,696 | $ | 2,539 | ||||
Work in process | 314 | 261 | ||||||
Finished goods | 1,760 | 1,803 | ||||||
$ | 4,770 | $ | 4,603 | |||||
Fixed_Assets
Fixed Assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Fixed Assets | ' | |||||||
6. Fixed Assets | ||||||||
A summary of fixed assets follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
Property, plant & equipment | $ | 36,906 | $ | 35,164 | ||||
Less: Accumulated depreciation | 21,163 | 20,068 | ||||||
$ | 15,743 | $ | 15,096 | |||||
Depreciation expense relating to fixed assets was as follows: | ||||||||
(Stated in millions) | ||||||||
2014 | 2013 | |||||||
Second Quarter | $ | 800 | $ | 776 | ||||
Six Months | $ | 1,593 | $ | 1,537 | ||||
Multiclient_Seismic_Data
Multiclient Seismic Data | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Multiclient Seismic Data | ' | |||||
7. Multiclient Seismic Data | ||||||
The change in the carrying amount of multiclient seismic data for the six months ended June 30, 2014 was as follows: | ||||||
(Stated in millions) | ||||||
Balance at December 31, 2013 | $ | 667 | ||||
Capitalized in period | 154 | |||||
Charged to expense | (94 | ) | ||||
Balance at June 30, 2014 | $ | 727 | ||||
Goodwill
Goodwill | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Goodwill | ' | |||||||||||||||
8. Goodwill | ||||||||||||||||
The changes in the carrying amount of goodwill by reporting unit for the six months ended June 30, 2014 were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Reservoir | ||||||||||||||||
Characterization | Drilling | Production | Total | |||||||||||||
Balance at December 31, 2013 | $ | 3,737 | $ | 8,315 | $ | 2,654 | $ | 14,706 | ||||||||
Acquisitions | 17 | 223 | 275 | 515 | ||||||||||||
Reallocation | 83 | (83 | ) | — | — | |||||||||||
Impact of changes in exchange rates | (1 | ) | — | — | (1 | ) | ||||||||||
Balance at June 30, 2014 | $ | 3,836 | $ | 8,455 | $ | 2,929 | $ | 15,220 | ||||||||
Intangible_Assets
Intangible Assets | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||
9. Intangible Assets | ||||||||||||||||||||||||
The gross book value, accumulated amortization and net book value of intangible assets were as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Book Value | Amortization | Value | Book Value | Amortization | Value | |||||||||||||||||||
Technology/Technical Know-How | $ | 1,960 | $ | 650 | $ | 1,310 | $ | 1,960 | $ | 597 | $ | 1,363 | ||||||||||||
Tradenames | 1,646 | 290 | 1,356 | 1,647 | 257 | 1,390 | ||||||||||||||||||
Customer Relationships | 2,441 | 464 | 1,977 | 2,263 | 407 | 1,856 | ||||||||||||||||||
Other | 430 | 335 | 95 | 435 | 335 | 100 | ||||||||||||||||||
$ | 6,477 | $ | 1,739 | $ | 4,738 | $ | 6,305 | $ | 1,596 | $ | 4,709 | |||||||||||||
Amortization expense charged to income was as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Second Quarter | $ | 86 | $ | 81 | ||||||||||||||||||||
Six Months | $ | 169 | $ | 163 | ||||||||||||||||||||
The weighted average amortization period for all intangible assets is approximately 20 years. | ||||||||||||||||||||||||
Based on the net book value of intangible assets at June 30, 2014, amortization charged to income for the subsequent five years is estimated to be: remainder of 2014—$178 million; 2015—$355 million; 2016—$344 million; 2017—$337 million; 2018—$329 million; and 2019—$318 million. |
Longterm_Debt
Long-term Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Long-term Debt | ' | |||||||
10. Long-term Debt | ||||||||
A summary of Long-term Debt follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
3.30% Senior Notes due 2021 | $ | 1,596 | $ | 1,596 | ||||
3.65% Senior Notes due 2023 | 1,495 | 1,495 | ||||||
2.75% Guaranteed Notes due 2015 | 1,359 | 1,373 | ||||||
1.95% Senior Notes due 2016 | 1,099 | 1,099 | ||||||
4.20% Senior Notes due 2021 | 1,100 | 1,099 | ||||||
1.25% Senior Notes due 2017 | 1,000 | 999 | ||||||
2.40% Senior Notes due 2022 | 999 | 999 | ||||||
1.50% Guaranteed Notes due 2019 | 694 | 697 | ||||||
2.65% Senior Notes due 2016 | 500 | 500 | ||||||
Commercial paper borrowings | 1,472 | — | ||||||
Other | 426 | 536 | ||||||
$ | 11,740 | $ | 10,393 | |||||
The estimated fair value of Schlumberger’s Long-term Debt at June 30, 2014 and December 31, 2013, based on quoted market prices, was $12.0 billion and $10.4 billion, respectively. | ||||||||
Borrowings under the commercial paper program at June 30, 2014 were $2.0 billion, of which $0.5 billion was classified within Long-term debt – current portion in the Consolidated Balance Sheet. At December 31, 2013, borrowings under the commercial paper program were $95 million, all of which was classified within Long-term debt – current portion in the Consolidated Balance Sheet. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||
11. Derivative Instruments and Hedging Activities | |||||||||||||||||||||
Schlumberger is exposed to market risks related to fluctuations in foreign currency exchange rates and interest rates. To mitigate these risks, Schlumberger utilizes derivative instruments. Schlumberger does not enter into derivative transactions for speculative purposes. | |||||||||||||||||||||
Foreign Currency Exchange Rate Risk | |||||||||||||||||||||
As a multinational company, Schlumberger conducts business in more than 85 countries. Schlumberger’s functional currency is primarily the US dollar, which is consistent with the oil and gas industry. However, outside the United States, a significant portion of Schlumberger’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which Schlumberger conducts business, the US dollar–reported expenses will increase (decrease). | |||||||||||||||||||||
Schlumberger is exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that are other than the functional currency. In addition, Schlumberger is also exposed to risks on future cash flows relating to certain of its long-term debt which is denominated in currencies other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the effective portion of changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Accumulated Other Comprehensive Loss. Amounts recorded in Accumulated Other Comprehensive Loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of hedging instruments, if any, is recorded directly to earnings. | |||||||||||||||||||||
At June 30, 2014, Schlumberger recognized a cumulative net $48 million gain in Equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges, the majority of which is expected to be reclassified into earnings within the next 12 months. | |||||||||||||||||||||
Schlumberger is also exposed to changes in the fair value of assets and liabilities which are denominated in currencies other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to hedge this exposure as it relates to certain currencies. These contracts are accounted for as fair value hedges with the fair value of the contracts recorded on the Consolidated Balance Sheet and changes in the fair value recognized in the Consolidated Statement of Income along with the change in fair value of the hedged item. | |||||||||||||||||||||
At June 30, 2014, contracts were outstanding for the US dollar equivalent of $5.8 billion in various foreign currencies, of which $2.5 billion related to hedges of debt denominated in currencies other than the functional currency. | |||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||
Schlumberger is subject to interest rate risk on its debt and its investment portfolio. Schlumberger maintains an interest rate risk management strategy that uses a mix of variable and fixed rate debt combined with its investment portfolio and occasionally interest rate swaps to mitigate the exposure to changes in interest rates. | |||||||||||||||||||||
During the fourth quarter of 2013, Schlumberger entered into a cross currency swap for a notional amount of €0.5 billion in order to hedge changes in the fair value of Schlumberger’s €0.5 billion 1.50% Guaranteed Notes due 2019. Under the terms of this swap, Schlumberger will receive interest at a fixed rate of 1.50% on the euro notional amount and will pay interest at a floating rate of three-month LIBOR plus approximately 64 basis points on the US dollar notional amount. | |||||||||||||||||||||
This cross currency swap is designated as a fair value hedge of the underlying debt. This derivative instrument is marked to market with gains and losses recognized currently in income to largely offset the respective gains and losses recognized on changes in the fair value of the hedged debt. | |||||||||||||||||||||
At June 30, 2014, Schlumberger had fixed rate debt aggregating $9.1 billion and variable rate debt aggregating $4.1 billion, after taking into account the effect of the swap. | |||||||||||||||||||||
Short-term investments and Fixed income investments, held to maturity, totaled $4.9 billion at June 30, 2014, and were comprised primarily of money market funds, eurodollar time deposits, certificates of deposit, commercial paper, euro notes and Eurobonds, and were substantially all denominated in US dollars. The carrying value of these investments approximated fair value, which was estimated using quoted market prices for those or similar investments. | |||||||||||||||||||||
The fair values of outstanding derivative instruments are as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Fair Value of Derivatives | Consolidated Balance Sheet Classification | ||||||||||||||||||||
Jun. 30, | Dec. 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 17 | $ | 98 | Other current assets | ||||||||||||||||
Foreign exchange contracts | 11 | 24 | Other Assets | ||||||||||||||||||
Interest rate swap | 23 | 27 | Other Assets | ||||||||||||||||||
$ | 51 | $ | 149 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 5 | $ | 10 | Other current assets | ||||||||||||||||
Foreign exchange contracts | 3 | 4 | Other Assets | ||||||||||||||||||
$ | 8 | $ | 14 | ||||||||||||||||||
$ | 59 | $ | 163 | ||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 6 | $ | 14 | Accounts payable and accrued liabilities | ||||||||||||||||
Foreign exchange contracts | 1 | 1 | Other Liabilities | ||||||||||||||||||
$ | 7 | $ | 15 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 10 | $ | 2 | Accounts payable and accrued liabilities | ||||||||||||||||
$ | 17 | $ | 17 | ||||||||||||||||||
The fair value of all outstanding derivatives was determined using a model with inputs that are observable in the market or can be derived from or corroborated by observable data. | |||||||||||||||||||||
The effect of derivative instruments designated as fair value hedges and those not designated as hedges on the Consolidated Statement of Income was as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Recognized in Income | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Consolidated Statement of Income Classification | |||||||||||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||||||
Interest rate swaps | $ | (8 | ) | $ | — | $ | (9 | ) | $ | (2 | ) | Interest expense | |||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | (8 | ) | $ | (1 | ) | $ | 5 | $ | (23 | ) | Cost of revenue | |||||||||
The effect of derivative instruments in cash flow hedging relationships on income and Accumulated other Comprehensive Loss (AOCL) was as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Reclassified | |||||||||||||||||||||
from AOCL into Income | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Consolidated Statement of Income Classification | |||||||||||||||||
Foreign exchange contracts | $ | (11 | ) | $ | 38 | $ | (8 | ) | $ | (41 | ) | Cost of revenue | |||||||||
Foreign exchange contracts | 2 | (4 | ) | 2 | (4 | ) | Research & engineering | ||||||||||||||
$ | (9 | ) | $ | 34 | $ | (6 | ) | $ | (45 | ) | |||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Recognized in AOCL | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (3 | ) | $ | 49 | $ | 13 | $ | (104 | ) | |||||||||||
Income_Tax
Income Tax | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax | ' | |||||||||||||||
12. Income Tax | ||||||||||||||||
Income from continuing operations before taxes which were subject to US and non-US income taxes was as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 625 | $ | 510 | $ | 1,149 | $ | 931 | ||||||||
Outside United States | 1,702 | 2,163 | 3,254 | 3,360 | ||||||||||||
$ | 2,327 | $ | 2,673 | $ | 4,403 | $ | 4,291 | |||||||||
Schlumberger recorded net pretax credits of $664 million during the second quarter of 2013 ($53 million of charges in the US and $717 million of net credits outside the US). These charges are included in the table above and are more fully described in Note 2 — Charges and Credits. | ||||||||||||||||
Schlumberger recorded net pretax credits of $572 million during the six months ended June 30, 2013 ($53 million of charges in the US and $625 million of net credits outside the US). | ||||||||||||||||
The components of net deferred tax assets (liabilities) were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Jun. 30, | Dec. 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Postretirement benefits | $ | 242 | $ | 236 | ||||||||||||
Intangible assets | (1,486 | ) | (1,502 | ) | ||||||||||||
Investments in non-US subsidiaries | (278 | ) | (282 | ) | ||||||||||||
Other, net | 101 | 128 | ||||||||||||||
$ | (1,421 | ) | $ | (1,420 | ) | |||||||||||
The above deferred tax balances at both June 30, 2014 and December 31, 2013 were net of valuation allowances relating to net operating losses in certain countries of $246 million and $238 million, respectively. | ||||||||||||||||
The components of consolidated Taxes on income were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Current: | ||||||||||||||||
United States — Federal | $ | 131 | $ | 203 | $ | 277 | $ | 319 | ||||||||
United States — State | 12 | 20 | 19 | 35 | ||||||||||||
Outside United States | 355 | 298 | 691 | 546 | ||||||||||||
$ | 498 | $ | 521 | $ | 987 | $ | 900 | |||||||||
Deferred: | ||||||||||||||||
United States — Federal | $ | 4 | $ | (42 | ) | $ | 11 | $ | (24 | ) | ||||||
United States — State | 3 | (3 | ) | 2 | (3 | ) | ||||||||||
Outside United States | 1 | (7 | ) | (26 | ) | 2 | ||||||||||
Valuation allowance | — | (20 | ) | — | (20 | ) | ||||||||||
$ | 8 | $ | (72 | ) | $ | (13 | ) | $ | (45 | ) | ||||||
$ | 506 | $ | 449 | $ | 974 | $ | 855 | |||||||||
A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows: | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
US state income taxes | — | — | — | 1 | ||||||||||||
Non-US income taxed at different rates | (11 | ) | (12 | ) | (11 | ) | (12 | ) | ||||||||
Charges and credits (See Note 2) | — | (6 | ) | — | (4 | ) | ||||||||||
Other | (2 | ) | — | (2 | ) | — | ||||||||||
22 | % | 17 | % | 22 | % | 20 | % | |||||||||
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Contingencies | ' |
13. Contingencies | |
In 2009, United States officials began a grand jury investigation and an associated regulatory inquiry, both related to certain historical Schlumberger operations in specified countries that are subject to United States trade and economic sanctions. Governmental agencies and authorities have a broad range of civil and criminal penalties that they may seek to impose for violations of trade and economic sanction laws including, but not limited to, disgorgement, fines, penalties and modifications to business practices. In recent years, these agencies and authorities have obtained a wide range of penalties in settlements with companies arising from trade and economic sanction investigations, including in some cases fines and other penalties in the tens and hundreds of millions of dollars. Schlumberger continues to cooperate and has been discussing the resolution of this matter with the governmental authorities. During the latter part of the second quarter of 2014, these discussions progressed to a point whereby Schlumberger determined that it was appropriate to increase its liability for this contingency. Accordingly, Schlumberger recorded a $205 million charge during the second quarter of 2014 within Loss from discontinued operations in the Consolidated Statement of Income. However, no certainty exists that a settlement will be reached or if so, the amount of any such settlement. Therefore, the ultimate loss could be greater or less than the amount accrued. | |
Schlumberger and its subsidiaries are party to various other legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to these other legal proceedings is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of any of these proceedings. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Information | ' | |||||||||||||||
14. Segment Information | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter 2014 | Second Quarter 2013 | |||||||||||||||
Revenue | Income | Revenue | Income | |||||||||||||
before | before | |||||||||||||||
taxes | taxes | |||||||||||||||
Reservoir Characterization | $ | 3,095 | $ | 918 | $ | 3,067 | $ | 912 | ||||||||
Drilling | 4,653 | 981 | 4,239 | 800 | ||||||||||||
Production | 4,344 | 725 | 3,926 | 625 | ||||||||||||
Eliminations & other | (38 | ) | (3 | ) | (50 | ) | (59 | ) | ||||||||
Pretax operating income | 2,621 | 2,278 | ||||||||||||||
Corporate & other (1) | (216 | ) | (181 | ) | ||||||||||||
Interest income (2) | 8 | 4 | ||||||||||||||
Interest expense (3) | (86 | ) | (92 | ) | ||||||||||||
Charges and credits (4) | — | 664 | ||||||||||||||
$ | 12,054 | $ | 2,327 | $ | 11,182 | $ | 2,673 | |||||||||
(1) Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible assets and other nonoperating items. | ||||||||||||||||
(2) Interest income excludes amounts which are included in the segments’ income ($5 million in 2014; $2 million in 2013). | ||||||||||||||||
(3) Interest expense excludes amounts which are included in the segments’ income ($4 million in 2014; $6 million in 2013). | ||||||||||||||||
(4) See Note 2 – Charges and Credits. | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Six Months 2014 | Six Months 2013 | |||||||||||||||
Revenue | Income | Revenue | Income | |||||||||||||
before | before | |||||||||||||||
taxes | taxes | |||||||||||||||
Reservoir Characterization | $ | 5,947 | $ | 1,698 | $ | 5,868 | $ | 1,641 | ||||||||
Drilling | 8,984 | 1,861 | 8,301 | 1,525 | ||||||||||||
Production | 8,460 | 1,462 | 7,684 | 1,181 | ||||||||||||
Eliminations & other | (97 | ) | (32 | ) | (101 | ) | (104 | ) | ||||||||
Pretax operating income | 4,989 | 4,243 | ||||||||||||||
Corporate & other (1) | (418 | ) | (348 | ) | ||||||||||||
Interest income (2) | 15 | 9 | ||||||||||||||
Interest expense (3) | (183 | ) | (185 | ) | ||||||||||||
Charges and credits (4) | — | 572 | ||||||||||||||
$ | 23,294 | $ | 4,403 | $ | 21,752 | $ | 4,291 | |||||||||
(1) Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible assets and other nonoperating items. | ||||||||||||||||
(2) Interest income excludes amounts which are included in the segments’ income ($10 million in 2014; $2 million in 2013). | ||||||||||||||||
(3) Interest expense excludes amounts which are included in the segments’ income ($10 million in 2014; $12 million in 2013). | ||||||||||||||||
(4) See Note 2 – Charges and Credits. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||||||||||||||||||
15. Pension and Other Postretirement Benefits | ||||||||||||||||||||||||||||||||
Net pension cost for the Schlumberger pension plans included the following components: | ||||||||||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||||||||||
Second Quarter | Six Months | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
US | Int'l | US | Int'l | US | Int'l | US | Int'l | |||||||||||||||||||||||||
Service cost — benefits earned during period | $ | 16 | $ | 29 | $ | 21 | $ | 34 | $ | 35 | $ | 60 | $ | 41 | $ | 67 | ||||||||||||||||
Interest cost on projected benefit obligation | 35 | 56 | 38 | 63 | 76 | 128 | 75 | 124 | ||||||||||||||||||||||||
Expected return on plan assets | (44 | ) | (88 | ) | (51 | ) | (100 | ) | (96 | ) | (200 | ) | (103 | ) | (200 | ) | ||||||||||||||||
Amortization of prior service cost | 3 | 22 | 3 | 29 | 6 | 52 | 6 | 59 | ||||||||||||||||||||||||
Amortization of net loss | 24 | 32 | 31 | 37 | 44 | 52 | 63 | 74 | ||||||||||||||||||||||||
$ | 34 | $ | 51 | $ | 42 | $ | 63 | $ | 65 | $ | 92 | $ | 82 | $ | 124 | |||||||||||||||||
The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components: | ||||||||||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||||||||||
Second Quarter | Six Months | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Service cost — benefits earned during period | $ | 11 | $ | 12 | $ | 22 | $ | 24 | ||||||||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 15 | 15 | 30 | 30 | ||||||||||||||||||||||||||||
Expected return on plan assets | (10 | ) | (9 | ) | (21 | ) | (18 | ) | ||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Amortization of net loss | 3 | 8 | 4 | 15 | ||||||||||||||||||||||||||||
$ | 18 | $ | 25 | $ | 33 | $ | 49 | |||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
16. Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Accumulated Other Comprehensive Loss consists of the following: | ||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||
Pension and | Unrealized | |||||||||||||||||||
Currency | Fair Value | Other | Gains | |||||||||||||||||
Translation | of | Postretirement | Marketable | |||||||||||||||||
Adjustments | Derivatives | Benefit Plans | Securities | Total | ||||||||||||||||
Balance, January 1, 2014 | $ | (1,068 | ) | $ | 29 | $ | (1,691 | ) | $ | 176 | $ | (2,554 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (30 | ) | 13 | — | 30 | 13 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 6 | 156 | — | 162 | |||||||||||||||
Income taxes | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net other comprehensive income (loss) | (30 | ) | 19 | 136 | 30 | 155 | ||||||||||||||
Balance, June 30, 2014 | $ | (1,098 | ) | $ | 48 | $ | (1,555 | ) | $ | 206 | $ | (2,399 | ) | |||||||
(Stated in millions) | ||||||||||||||||||||
Pension and | Unrealized | |||||||||||||||||||
Currency | Fair Value | Other | Gains | |||||||||||||||||
Translation | of | Postretirement | Marketable | |||||||||||||||||
Adjustments | Derivatives | Benefit Plans | Securities | Total | ||||||||||||||||
Balance, January 1, 2013 | $ | (918 | ) | $ | 30 | $ | (3,141 | ) | $ | 141 | $ | (3,888 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (243 | ) | (104 | ) | (6 | ) | 83 | (270 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 9 | 45 | 215 | — | 269 | |||||||||||||||
Income taxes | — | — | (31 | ) | — | (31 | ) | |||||||||||||
Net other comprehensive income (loss) | (234 | ) | (59 | ) | 178 | 83 | (32 | ) | ||||||||||||
Balance, June 30, 2013 | $ | (1,152 | ) | $ | (29 | ) | $ | (2,963 | ) | $ | 224 | $ | (3,920 | ) | ||||||
Discontinued_Operations
Discontinued Operations | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Discontinued Operations | ' | ||||||||||||||
17. Discontinued Operations | |||||||||||||||
During the second quarter of 2013, Schlumberger completed the wind down of its operations in Iran and has classified the historical results of this business as a discontinued operation. | |||||||||||||||
The following table summarizes the results of this discontinued operation: | |||||||||||||||
(Stated in millions) | |||||||||||||||
Second Quarter | Six Months | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | $ | — | $ | 4 | $ | — | $ | 102 | |||||||
Loss before taxes | $ | (205 | ) | $ | (124 | ) | $ | (205 | ) | $ | (63 | ) | |||
Tax expense | — | — | — | (6 | ) | ||||||||||
Loss from discontinued operations | $ | (205 | ) | $ | (124 | ) | $ | (205 | ) | $ | (69 | ) | |||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncement | ' |
New Accounting Pronouncement | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. Schlumberger is required to adopt this ASU on January 1, 2017. Schlumberger does not expect this ASU to have a material impact on its consolidated financial statements. | |
Charges_and_Credits_Tables
Charges and Credits (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary of the Charges | ' | |||||||||||||||
The following is a summary of the charges recorded during the first six months of 2013: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Pretax | Tax | Net | Classification | |||||||||||||
Gain on formation of OneSubsea joint venture | $ | (1,028 | ) | $ | — | $ | (1,028 | ) | Gain on formation of OneSubsea | |||||||
Impairment of equity-method investments | 364 | 19 | 345 | Impairment & other | ||||||||||||
Currency devaluation loss in Venezuela | 92 | $ | — | 92 | Impairment & other | |||||||||||
$ | (572 | ) | $ | 19 | $ | (591 | ) | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Reconciliation of Earnings Per Share from Continuing Operations | ' | |||||||||||||||||||||||
The following is a reconciliation from basic earnings per share of Schlumberger to diluted earnings per share from continuing operations of Schlumberger: | ||||||||||||||||||||||||
(Stated in millions, except per share amounts) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Schlumberger Income from Continuing Operations | Average Shares Outstanding | Earnings per Share from Continuing Operations | Schlumberger Income from Continuing Operations | Average | Earnings per Share from Continuing Operations | |||||||||||||||||||
Shares Outstanding | ||||||||||||||||||||||||
Second Quarter | ||||||||||||||||||||||||
Basic | $ | 1,800 | 1,300 | $ | 1.38 | $ | 2,219 | 1,327 | $ | 1.67 | ||||||||||||||
Assumed exercise of stock options | — | 11 | — | 5 | ||||||||||||||||||||
Unvested restricted stock | — | 4 | — | 4 | ||||||||||||||||||||
Diluted | $ | 1,800 | 1,315 | $ | 1.37 | $ | 2,219 | 1,336 | $ | 1.66 | ||||||||||||||
Schlumberger Income from Continuing Operations | Average Shares Outstanding | Earnings per Share from Continuing Operations | Schlumberger Income from Continuing Operations | Average | Earnings per Share from Continuing Operations | |||||||||||||||||||
Shares Outstanding | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Basic | $ | 3,392 | 1,303 | $ | 2.6 | $ | 3,423 | 1,329 | $ | 2.58 | ||||||||||||||
Assumed exercise of stock options | — | 9 | — | 6 | ||||||||||||||||||||
Unvested restricted stock | — | 4 | — | 4 | ||||||||||||||||||||
Diluted | $ | 3,392 | 1,316 | $ | 2.58 | $ | 3,423 | 1,339 | $ | 2.56 | ||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||||||||||||||
The number of outstanding options to purchase shares of Schlumberger common stock which were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, was as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Second Quarter | — | 13 | ||||||||||||||||||||||
Six Months | 5 | 13 | ||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure | ' | |||||||
A summary of inventories follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
Raw materials & field materials | $ | 2,696 | $ | 2,539 | ||||
Work in process | 314 | 261 | ||||||
Finished goods | 1,760 | 1,803 | ||||||
$ | 4,770 | $ | 4,603 | |||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment | ' | |||||||
A summary of fixed assets follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
Property, plant & equipment | $ | 36,906 | $ | 35,164 | ||||
Less: Accumulated depreciation | 21,163 | 20,068 | ||||||
$ | 15,743 | $ | 15,096 | |||||
Depreciation Expense Relating to Fixed Assets | ' | |||||||
Depreciation expense relating to fixed assets was as follows: | ||||||||
(Stated in millions) | ||||||||
2014 | 2013 | |||||||
Second Quarter | $ | 800 | $ | 776 | ||||
Six Months | $ | 1,593 | $ | 1,537 | ||||
Multiclient_Seismic_Data_Table
Multiclient Seismic Data (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Multiclient Seismic Data Table | ' | |||||
The change in the carrying amount of multiclient seismic data for the six months ended June 30, 2014 was as follows: | ||||||
(Stated in millions) | ||||||
Balance at December 31, 2013 | $ | 667 | ||||
Capitalized in period | 154 | |||||
Charged to expense | (94 | ) | ||||
Balance at June 30, 2014 | $ | 727 | ||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill by reporting unit for the six months ended June 30, 2014 were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Reservoir | ||||||||||||||||
Characterization | Drilling | Production | Total | |||||||||||||
Balance at December 31, 2013 | $ | 3,737 | $ | 8,315 | $ | 2,654 | $ | 14,706 | ||||||||
Acquisitions | 17 | 223 | 275 | 515 | ||||||||||||
Reallocation | 83 | (83 | ) | — | — | |||||||||||
Impact of changes in exchange rates | (1 | ) | — | — | (1 | ) | ||||||||||
Balance at June 30, 2014 | $ | 3,836 | $ | 8,455 | $ | 2,929 | $ | 15,220 | ||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Schedule of Intangible Assets by Major Class | ' | |||||||||||||||||||||||
The gross book value, accumulated amortization and net book value of intangible assets were as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Book Value | Amortization | Value | Book Value | Amortization | Value | |||||||||||||||||||
Technology/Technical Know-How | $ | 1,960 | $ | 650 | $ | 1,310 | $ | 1,960 | $ | 597 | $ | 1,363 | ||||||||||||
Tradenames | 1,646 | 290 | 1,356 | 1,647 | 257 | 1,390 | ||||||||||||||||||
Customer Relationships | 2,441 | 464 | 1,977 | 2,263 | 407 | 1,856 | ||||||||||||||||||
Other | 430 | 335 | 95 | 435 | 335 | 100 | ||||||||||||||||||
$ | 6,477 | $ | 1,739 | $ | 4,738 | $ | 6,305 | $ | 1,596 | $ | 4,709 | |||||||||||||
Amortization Expense Charged to Income for Intangible Assets | ' | |||||||||||||||||||||||
Amortization expense charged to income was as follows: | ||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Second Quarter | $ | 86 | $ | 81 | ||||||||||||||||||||
Six Months | $ | 169 | $ | 163 | ||||||||||||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Long-term Debt | ' | |||||||
A summary of Long-term Debt follows: | ||||||||
(Stated in millions) | ||||||||
Jun. 30, | Dec. 31, | |||||||
2014 | 2013 | |||||||
3.30% Senior Notes due 2021 | $ | 1,596 | $ | 1,596 | ||||
3.65% Senior Notes due 2023 | 1,495 | 1,495 | ||||||
2.75% Guaranteed Notes due 2015 | 1,359 | 1,373 | ||||||
1.95% Senior Notes due 2016 | 1,099 | 1,099 | ||||||
4.20% Senior Notes due 2021 | 1,100 | 1,099 | ||||||
1.25% Senior Notes due 2017 | 1,000 | 999 | ||||||
2.40% Senior Notes due 2022 | 999 | 999 | ||||||
1.50% Guaranteed Notes due 2019 | 694 | 697 | ||||||
2.65% Senior Notes due 2016 | 500 | 500 | ||||||
Commercial paper borrowings | 1,472 | — | ||||||
Other | 426 | 536 | ||||||
$ | 11,740 | $ | 10,393 | |||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Fair Values of Outstanding Derivative Instruments | ' | ||||||||||||||||||||
The fair values of outstanding derivative instruments are as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Fair Value of Derivatives | Consolidated Balance Sheet Classification | ||||||||||||||||||||
Jun. 30, | Dec. 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 17 | $ | 98 | Other current assets | ||||||||||||||||
Foreign exchange contracts | 11 | 24 | Other Assets | ||||||||||||||||||
Interest rate swap | 23 | 27 | Other Assets | ||||||||||||||||||
$ | 51 | $ | 149 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 5 | $ | 10 | Other current assets | ||||||||||||||||
Foreign exchange contracts | 3 | 4 | Other Assets | ||||||||||||||||||
$ | 8 | $ | 14 | ||||||||||||||||||
$ | 59 | $ | 163 | ||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 6 | $ | 14 | Accounts payable and accrued liabilities | ||||||||||||||||
Foreign exchange contracts | 1 | 1 | Other Liabilities | ||||||||||||||||||
$ | 7 | $ | 15 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | 10 | $ | 2 | Accounts payable and accrued liabilities | ||||||||||||||||
$ | 17 | $ | 17 | ||||||||||||||||||
Effect of Derivative Instruments Designated as Fair Value Hedges and Not Designated as Hedges on Consolidated Statement of Income | ' | ||||||||||||||||||||
The effect of derivative instruments designated as fair value hedges and those not designated as hedges on the Consolidated Statement of Income was as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Recognized in Income | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Consolidated Statement of Income Classification | |||||||||||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||||||
Interest rate swaps | $ | (8 | ) | $ | — | $ | (9 | ) | $ | (2 | ) | Interest expense | |||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||
Foreign exchange contracts | $ | (8 | ) | $ | (1 | ) | $ | 5 | $ | (23 | ) | Cost of revenue | |||||||||
Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Accumulated Other Comprehensive Loss (AOCL) | ' | ||||||||||||||||||||
The effect of derivative instruments in cash flow hedging relationships on income and Accumulated other Comprehensive Loss (AOCL) was as follows: | |||||||||||||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Reclassified | |||||||||||||||||||||
from AOCL into Income | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | Consolidated Statement of Income Classification | |||||||||||||||||
Foreign exchange contracts | $ | (11 | ) | $ | 38 | $ | (8 | ) | $ | (41 | ) | Cost of revenue | |||||||||
Foreign exchange contracts | 2 | (4 | ) | 2 | (4 | ) | Research & engineering | ||||||||||||||
$ | (9 | ) | $ | 34 | $ | (6 | ) | $ | (45 | ) | |||||||||||
(Stated in millions) | |||||||||||||||||||||
Gain (Loss) Recognized in AOCL | |||||||||||||||||||||
Second Quarter | Six Months | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Foreign exchange contracts | $ | (3 | ) | $ | 49 | $ | 13 | $ | (104 | ) | |||||||||||
Income_Tax_Tables
Income Tax (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure Table | ' | |||||||||||||||
Income from continuing operations before taxes which were subject to US and non-US income taxes was as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 625 | $ | 510 | $ | 1,149 | $ | 931 | ||||||||
Outside United States | 1,702 | 2,163 | 3,254 | 3,360 | ||||||||||||
$ | 2,327 | $ | 2,673 | $ | 4,403 | $ | 4,291 | |||||||||
Components of Net Deferred Tax Assets | ' | |||||||||||||||
The components of net deferred tax assets (liabilities) were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Jun. 30, | Dec. 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Postretirement benefits | $ | 242 | $ | 236 | ||||||||||||
Intangible assets | (1,486 | ) | (1,502 | ) | ||||||||||||
Investments in non-US subsidiaries | (278 | ) | (282 | ) | ||||||||||||
Other, net | 101 | 128 | ||||||||||||||
$ | (1,421 | ) | $ | (1,420 | ) | |||||||||||
Components of Consolidated Income Taxes | ' | |||||||||||||||
The components of consolidated Taxes on income were as follows: | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Current: | ||||||||||||||||
United States — Federal | $ | 131 | $ | 203 | $ | 277 | $ | 319 | ||||||||
United States — State | 12 | 20 | 19 | 35 | ||||||||||||
Outside United States | 355 | 298 | 691 | 546 | ||||||||||||
$ | 498 | $ | 521 | $ | 987 | $ | 900 | |||||||||
Deferred: | ||||||||||||||||
United States — Federal | $ | 4 | $ | (42 | ) | $ | 11 | $ | (24 | ) | ||||||
United States — State | 3 | (3 | ) | 2 | (3 | ) | ||||||||||
Outside United States | 1 | (7 | ) | (26 | ) | 2 | ||||||||||
Valuation allowance | — | (20 | ) | — | (20 | ) | ||||||||||
$ | 8 | $ | (72 | ) | $ | (13 | ) | $ | (45 | ) | ||||||
$ | 506 | $ | 449 | $ | 974 | $ | 855 | |||||||||
Reconciliation of US Statutory Federal Tax Rate | ' | |||||||||||||||
A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows: | ||||||||||||||||
Second Quarter | Six Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
US federal statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
US state income taxes | — | — | — | 1 | ||||||||||||
Non-US income taxed at different rates | (11 | ) | (12 | ) | (11 | ) | (12 | ) | ||||||||
Charges and credits (See Note 2) | — | (6 | ) | — | (4 | ) | ||||||||||
Other | (2 | ) | — | (2 | ) | — | ||||||||||
22 | % | 17 | % | 22 | % | 20 | % | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||
(Stated in millions) | ||||||||||||||||
Second Quarter 2014 | Second Quarter 2013 | |||||||||||||||
Revenue | Income | Revenue | Income | |||||||||||||
before | before | |||||||||||||||
taxes | taxes | |||||||||||||||
Reservoir Characterization | $ | 3,095 | $ | 918 | $ | 3,067 | $ | 912 | ||||||||
Drilling | 4,653 | 981 | 4,239 | 800 | ||||||||||||
Production | 4,344 | 725 | 3,926 | 625 | ||||||||||||
Eliminations & other | (38 | ) | (3 | ) | (50 | ) | (59 | ) | ||||||||
Pretax operating income | 2,621 | 2,278 | ||||||||||||||
Corporate & other (1) | (216 | ) | (181 | ) | ||||||||||||
Interest income (2) | 8 | 4 | ||||||||||||||
Interest expense (3) | (86 | ) | (92 | ) | ||||||||||||
Charges and credits (4) | — | 664 | ||||||||||||||
$ | 12,054 | $ | 2,327 | $ | 11,182 | $ | 2,673 | |||||||||
(1) Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible assets and other nonoperating items. | ||||||||||||||||
(2) Interest income excludes amounts which are included in the segments’ income ($5 million in 2014; $2 million in 2013). | ||||||||||||||||
(3) Interest expense excludes amounts which are included in the segments’ income ($4 million in 2014; $6 million in 2013). | ||||||||||||||||
(4) See Note 2 – Charges and Credits. | ||||||||||||||||
(Stated in millions) | ||||||||||||||||
Six Months 2014 | Six Months 2013 | |||||||||||||||
Revenue | Income | Revenue | Income | |||||||||||||
before | before | |||||||||||||||
taxes | taxes | |||||||||||||||
Reservoir Characterization | $ | 5,947 | $ | 1,698 | $ | 5,868 | $ | 1,641 | ||||||||
Drilling | 8,984 | 1,861 | 8,301 | 1,525 | ||||||||||||
Production | 8,460 | 1,462 | 7,684 | 1,181 | ||||||||||||
Eliminations & other | (97 | ) | (32 | ) | (101 | ) | (104 | ) | ||||||||
Pretax operating income | 4,989 | 4,243 | ||||||||||||||
Corporate & other (1) | (418 | ) | (348 | ) | ||||||||||||
Interest income (2) | 15 | 9 | ||||||||||||||
Interest expense (3) | (183 | ) | (185 | ) | ||||||||||||
Charges and credits (4) | — | 572 | ||||||||||||||
$ | 23,294 | $ | 4,403 | $ | 21,752 | $ | 4,291 | |||||||||
(1) Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible assets and other nonoperating items. | ||||||||||||||||
(2) Interest income excludes amounts which are included in the segments’ income ($10 million in 2014; $2 million in 2013). | ||||||||||||||||
(3) Interest expense excludes amounts which are included in the segments’ income ($10 million in 2014; $12 million in 2013). | ||||||||||||||||
(4) See Note 2 – Charges and Credits. |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Net Pension Cost for Schlumberger Pension Plans and US Postretirement Medical Plan | ' | |||||||||||||||||||||||||||||||
Net pension cost for the Schlumberger pension plans included the following components: | ||||||||||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||||||||||
Second Quarter | Six Months | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
US | Int'l | US | Int'l | US | Int'l | US | Int'l | |||||||||||||||||||||||||
Service cost — benefits earned during period | $ | 16 | $ | 29 | $ | 21 | $ | 34 | $ | 35 | $ | 60 | $ | 41 | $ | 67 | ||||||||||||||||
Interest cost on projected benefit obligation | 35 | 56 | 38 | 63 | 76 | 128 | 75 | 124 | ||||||||||||||||||||||||
Expected return on plan assets | (44 | ) | (88 | ) | (51 | ) | (100 | ) | (96 | ) | (200 | ) | (103 | ) | (200 | ) | ||||||||||||||||
Amortization of prior service cost | 3 | 22 | 3 | 29 | 6 | 52 | 6 | 59 | ||||||||||||||||||||||||
Amortization of net loss | 24 | 32 | 31 | 37 | 44 | 52 | 63 | 74 | ||||||||||||||||||||||||
$ | 34 | $ | 51 | $ | 42 | $ | 63 | $ | 65 | $ | 92 | $ | 82 | $ | 124 | |||||||||||||||||
The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components: | ||||||||||||||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||||||||||||||
Second Quarter | Six Months | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Service cost — benefits earned during period | $ | 11 | $ | 12 | $ | 22 | $ | 24 | ||||||||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 15 | 15 | 30 | 30 | ||||||||||||||||||||||||||||
Expected return on plan assets | (10 | ) | (9 | ) | (21 | ) | (18 | ) | ||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Amortization of net loss | 3 | 8 | 4 | 15 | ||||||||||||||||||||||||||||
$ | 18 | $ | 25 | $ | 33 | $ | 49 | |||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Accumulated Other Comprehensive Loss consists of the following: | ||||||||||||||||||||
(Stated in millions) | ||||||||||||||||||||
Pension and | Unrealized | |||||||||||||||||||
Currency | Fair Value | Other | Gains | |||||||||||||||||
Translation | of | Postretirement | Marketable | |||||||||||||||||
Adjustments | Derivatives | Benefit Plans | Securities | Total | ||||||||||||||||
Balance, January 1, 2014 | $ | (1,068 | ) | $ | 29 | $ | (1,691 | ) | $ | 176 | $ | (2,554 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (30 | ) | 13 | — | 30 | 13 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 6 | 156 | — | 162 | |||||||||||||||
Income taxes | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net other comprehensive income (loss) | (30 | ) | 19 | 136 | 30 | 155 | ||||||||||||||
Balance, June 30, 2014 | $ | (1,098 | ) | $ | 48 | $ | (1,555 | ) | $ | 206 | $ | (2,399 | ) | |||||||
(Stated in millions) | ||||||||||||||||||||
Pension and | Unrealized | |||||||||||||||||||
Currency | Fair Value | Other | Gains | |||||||||||||||||
Translation | of | Postretirement | Marketable | |||||||||||||||||
Adjustments | Derivatives | Benefit Plans | Securities | Total | ||||||||||||||||
Balance, January 1, 2013 | $ | (918 | ) | $ | 30 | $ | (3,141 | ) | $ | 141 | $ | (3,888 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (243 | ) | (104 | ) | (6 | ) | 83 | (270 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 9 | 45 | 215 | — | 269 | |||||||||||||||
Income taxes | — | — | (31 | ) | — | (31 | ) | |||||||||||||
Net other comprehensive income (loss) | (234 | ) | (59 | ) | 178 | 83 | (32 | ) | ||||||||||||
Balance, June 30, 2013 | $ | (1,152 | ) | $ | (29 | ) | $ | (2,963 | ) | $ | 224 | $ | (3,920 | ) | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Discontinued Operations | ' | ||||||||||||||
The following table summarizes the results of this discontinued operation: | |||||||||||||||
(Stated in millions) | |||||||||||||||
Second Quarter | Six Months | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | $ | — | $ | 4 | $ | — | $ | 102 | |||||||
Loss before taxes | $ | (205 | ) | $ | (124 | ) | $ | (205 | ) | $ | (63 | ) | |||
Tax expense | — | — | — | (6 | ) | ||||||||||
Loss from discontinued operations | $ | (205 | ) | $ | (124 | ) | $ | (205 | ) | $ | (69 | ) | |||
Charges_and_Credits_Additional
Charges and Credits - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Drilling Related Technology | Contract Drilling | Other Restructuring | Venezuela Bolivar Official Currency Exchange Rate to Dollar | Venezuela Bolivar Official Currency Exchange Rate to Dollar | ||
Restructuring Cost And Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Exchange rate | ' | ' | ' | ' | 6.3 | 4.3 |
Currency loss before tax | ' | ' | ' | $92 | ' | ' |
Currency loss after tax | ' | ' | ' | 92 | ' | ' |
Charges or credits recorded in continuing operations | -591 | ' | ' | ' | ' | ' |
Pre tax and after tax gain from deconsolidation of business | 1,028 | ' | ' | ' | ' | ' |
Impairment charge, Pretax | ' | 222 | 142 | ' | ' | ' |
Impairment charge, Net | ' | $203 | $142 | ' | ' | ' |
Charges_and_Credits_Summary_of
Charges and Credits - Summary of Charges (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Investment In Joint Venture [Line Items] | ' | ' |
Charges, Pretax | $664 | $572 |
Charges, Tax | ' | 19 |
Charges, Net | ' | -591 |
Gain on formation of OneSubsea joint venture | Gain on formation of OneSubsea | ' | ' |
Investment In Joint Venture [Line Items] | ' | ' |
Charges, Pretax | ' | 1,028 |
Charges, Net | ' | -1,028 |
Impairment of equity-method investments | Impairment And other | ' | ' |
Investment In Joint Venture [Line Items] | ' | ' |
Charges, Pretax | ' | -364 |
Charges, Tax | ' | 19 |
Charges, Net | ' | 345 |
Currency devaluation loss in Venezuela | Impairment And other | ' | ' |
Investment In Joint Venture [Line Items] | ' | ' |
Charges, Pretax | ' | -92 |
Charges, Net | ' | $92 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Earnings Per Share from Continuing Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schlumberger amounts attributable to: | ' | ' | ' | ' |
Basic | $1,800 | $2,219 | $3,392 | $3,423 |
Diluted | $1,800 | $2,219 | $3,392 | $3,423 |
Average shares outstanding: | ' | ' | ' | ' |
Basic | 1,300 | 1,327 | 1,303 | 1,329 |
Assumed exercise of stock options | 11 | 5 | 9 | 6 |
Unvested restricted stock | 4 | 4 | 4 | 4 |
Diluted | 1,315 | 1,336 | 1,316 | 1,339 |
Earnings per Share from Continuing Operations | ' | ' | ' | ' |
Basic | $1.38 | $1.67 | $2.60 | $2.58 |
Diluted | $1.37 | $1.66 | $2.58 | $2.56 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) (Stock Compensation Plan) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock Compensation Plan | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Employee stock options to purchase | 13 | 5 | 13 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ' | ' | ' |
Gain on formation of OneSubsea | $1,028 | ' | $1,028 |
Acquisitions and investments, net of cash acquired | ' | 471 | 117 |
Shares of common stock issued in connection with acquisition | ' | 2.1 | ' |
Value of common stock issued in connection with acquisition | ' | 213 | ' |
One Subsea | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Ownership interest in joint venture | ' | 40.00% | ' |
Gain on formation of OneSubsea | ' | 1,028 | ' |
One Subsea | Parent Company | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | ' | $600 | ' |
Inventories_Inventory_Disclosu
Inventories - Inventory Disclosure (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials & field materials | $2,696 | $2,539 |
Work in process | 314 | 261 |
Finished goods | 1,760 | 1,803 |
Inventories | $4,770 | $4,603 |
Fixed_Assets_Property_Plant_an
Fixed Assets - Property, Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant & equipment | $36,906 | $35,164 |
Less: Accumulated depreciation | 21,163 | 20,068 |
Fixed assets less accumulated depreciation | $15,743 | $15,096 |
Fixed_Assets_Depreciation_Expe
Fixed Assets - Depreciation Expense Relating to Fixed Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Property Plant And Equipment [Line Items] | ' | ' | ' | ' |
Depreciation expense relating to fixed assets | $800 | $776 | $1,593 | $1,537 |
Multiclient_Seismic_Data_Multi
Multiclient Seismic Data - Multiclient Seismic Data Table (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Opening balance | $667 |
Capitalized in period | 154 |
Charged to expense | -94 |
Ending balance | $727 |
Goodwill_Changes_in_Carrying_A
Goodwill - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | $14,706 |
Acquisitions | 515 |
Impact of changes in exchange rates | -1 |
Goodwill, Ending Balance | 15,220 |
Reservoir Characterization | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 3,737 |
Acquisitions | 17 |
Reallocation | 83 |
Impact of changes in exchange rates | -1 |
Goodwill, Ending Balance | 3,836 |
Drilling | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 8,315 |
Acquisitions | 223 |
Reallocation | -83 |
Goodwill, Ending Balance | 8,455 |
Production | ' |
Goodwill [Line Items] | ' |
Goodwill, Beginning Balance | 2,654 |
Acquisitions | 275 |
Goodwill, Ending Balance | $2,929 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Intangible Assets by Major Class (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intangible Assets By Major Class [Line Items] | ' | ' |
Gross Book Value | $6,477 | $6,305 |
Accumulated Amortization | 1,739 | 1,596 |
Net Book Value | 4,738 | 4,709 |
Technology/Technical Know-How | ' | ' |
Intangible Assets By Major Class [Line Items] | ' | ' |
Gross Book Value | 1,960 | 1,960 |
Accumulated Amortization | 650 | 597 |
Net Book Value | 1,310 | 1,363 |
Tradenames | ' | ' |
Intangible Assets By Major Class [Line Items] | ' | ' |
Gross Book Value | 1,646 | 1,647 |
Accumulated Amortization | 290 | 257 |
Net Book Value | 1,356 | 1,390 |
Customer Relationships | ' | ' |
Intangible Assets By Major Class [Line Items] | ' | ' |
Gross Book Value | 2,441 | 2,263 |
Accumulated Amortization | 464 | 407 |
Net Book Value | 1,977 | 1,856 |
Other | ' | ' |
Intangible Assets By Major Class [Line Items] | ' | ' |
Gross Book Value | 430 | 435 |
Accumulated Amortization | 335 | 335 |
Net Book Value | $95 | $100 |
Intangible_Assets_Amortization
Intangible Assets - Amortization Expense Charged to Income for Intangible Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expenses | $86 | $81 | $169 | $163 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Weighted average amortization period for all intangible assets (years) | '20 years |
Estimated amortization charged to income, 2014 | $178 |
Estimated amortization charged to income, 2015 | 355 |
Estimated amortization charged to income, 2016 | 344 |
Estimated amortization charged to income, 2017 | 337 |
Estimated amortization charged to income, 2018 | 329 |
Estimated amortization charged to income, 2019 | $318 |
Longterm_Debt_Longterm_Debt_De
Long-term Debt - Long-term Debt (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | $11,740 | $10,393 |
3.30% Senior Notes due 2021 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,596 | 1,596 |
3.65% Senior Notes due 2023 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,495 | 1,495 |
2.75% Guaranteed Notes due 2015 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,359 | 1,373 |
1.95% Senior Notes due 2016 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,099 | 1,099 |
4.20% Senior Notes due 2021 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,100 | 1,099 |
1.25% Senior Notes due 2017 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,000 | 999 |
2.40% Senior Notes due 2022 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 999 | 999 |
1.50% Guaranteed Notes due 2019 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 694 | 697 |
2.65% Senior Notes due 2016 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 500 | 500 |
Commercial Paper Borrowings | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | 1,472 | ' |
Other | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, carrying amount | $426 | $536 |
Longterm_Debt_Longterm_Debt_Pa
Long-term Debt - Long-term Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
3.30% Senior Notes due 2021 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 3.30% | 3.30% |
Debt instrument maturity date | '2021 | '2021 |
3.65% Senior Notes due 2023 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 3.65% | 3.65% |
Debt instrument maturity date | '2023 | '2023 |
2.75% Guaranteed Notes due 2015 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 2.75% | 2.75% |
Debt instrument maturity date | '2015 | '2015 |
1.95% Senior Notes due 2016 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 1.95% | 1.95% |
Debt instrument maturity date | '2016 | '2016 |
4.20% Senior Notes due 2021 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 4.20% | 4.20% |
Debt instrument maturity date | '2021 | '2021 |
1.25% Senior Notes due 2017 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 1.25% | 1.25% |
Debt instrument maturity date | '2017 | '2017 |
2.40% Senior Notes due 2022 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 2.40% | 2.40% |
Debt instrument maturity date | '2022 | '2022 |
1.50% Guaranteed Notes due 2019 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 1.50% | 1.50% |
Debt instrument maturity date | '2019 | '2019 |
2.65% Senior Notes due 2016 | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate | 2.65% | 2.65% |
Debt instrument maturity date | '2016 | '2016 |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Proforma Debt Instrument [Line Items] | ' | ' |
Long-term debt, fair value | $12,000 | $10,400 |
Commercial Paper | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Committed debt facility agreement aggregated | 2,000 | ' |
Commercial Paper | Long-term debt current portion | ' | ' |
Proforma Debt Instrument [Line Items] | ' | ' |
Committed debt facility agreement aggregated | $500 | $95 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | 1.50% Guaranteed Notes due 2019 | Foreign exchange contracts | Foreign exchange contracts | Fixed Rate Debt | Floating Rate Debt | |
Country | EUR (€) | USD ($) | Debt | 1.50% Guaranteed Notes due 2019 | 1.50% Guaranteed Notes due 2019 | |
Derivatives designated as hedges | ||||||
USD ($) | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Number of countries in which Schlumberger conducts business | 85 | ' | ' | ' | ' | ' |
Recognized a cumulative net gain in equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges | $48,000,000 | ' | ' | ' | ' | ' |
Notional amount of interest rate swap | ' | 500,000,000 | 5,800,000,000 | 2,500,000,000 | ' | ' |
Guaranteed notes face amount | ' | 500,000,000 | ' | ' | ' | ' |
Derivative swap interest rate | ' | ' | ' | ' | 1.50% | ' |
Senior note floating interest rate | ' | ' | ' | ' | ' | 'three-month LIBOR plus approximately 64 basis points. |
Basis points | ' | ' | ' | ' | ' | 0.64% |
Fixed rate debt aggregate, after taking into account the effects of the interest rate swaps | 9,100,000,000 | ' | ' | ' | ' | ' |
Variable rate debt aggregate, after taking into account the effects of the interest rate swaps | 4,100,000,000 | ' | ' | ' | ' | ' |
Short-term investments and Fixed income investments, held to maturity | $4,900,000,000 | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Fair Values of Outstanding Derivative Instruments (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | |||
Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Interest rate swaps | Interest rate swaps | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | |||||||||||
Other current assets | Other current assets | Other Assets | Other Assets | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | Other Liabilities | Other Liabilities | Other Assets | Other Assets | Other current assets | Other current assets | Other Assets | Other Assets | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |||||||||||
Derivative Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Assets | ' | ' | ' | ' | ' | ' | $51 | $149 | $17 | $98 | $11 | $24 | ' | ' | ' | ' | $23 | $27 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Assets | 59 | 163 | -9 | 34 | -6 | -45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 14 | 5 | 10 | 3 | 4 | ' | ' |
Derivative Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Liabilities | ' | ' | ' | ' | ' | ' | $7 | $15 | ' | ' | ' | ' | $6 | $14 | $1 | $1 | ' | ' | $17 | $17 | ' | ' | ' | ' | $10 | $2 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments Designated as Fair Value Hedges and Not Designated as Hedges on Consolidated Statement of Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivatives designated as fair value hedges | Interest rate swaps | Interest expense | ' | ' | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | ($8) | ' | ($9) | ($2) |
Derivatives not designated as hedges | Foreign exchange contracts | Cost of revenue | ' | ' | ' | ' |
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | ($8) | ($1) | $5 | ($23) |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Accumulated Other Comprehensive Loss (AOCL) (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | |||
Cost of revenue | Cost of revenue | Cost of revenue | Cost of revenue | Research & engineering | Research & engineering | Research & engineering | Research & engineering | |||||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCL into Income | $59 | $163 | ($9) | $34 | ($6) | ($45) | ($11) | $38 | ($8) | ($41) | $2 | ($4) | $2 | ($4) |
Gain (Loss) Recognized in Accumulated OCL | ' | ' | ($3) | $49 | $13 | ($104) | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Tax_Income_Tax_Disclosu
Income Tax - Income Tax Disclosure Table (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure Income Tax Income Tax Disclosure Table Detail [Line Items] | ' | ' | ' | ' |
United States | $625 | $510 | $1,149 | $931 |
Outside United States | 1,702 | 2,163 | 3,254 | 3,360 |
Income (loss) from continuing operations before income taxes and minority interest, Total | $2,327 | $2,673 | $4,403 | $4,291 |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' |
Pretax provision relating to accounts receivable | ' | $664 | ' | $572 | ' |
Deferred tax assets, valuation allowances relating to net operating losses in certain countries | 246 | ' | 246 | ' | 238 |
US federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Domestic Country | ' | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' |
Pretax provision relating to accounts receivable | ' | 53 | ' | 53 | ' |
Foreign Country | ' | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' |
Pretax provision relating to accounts receivable | ' | $717 | ' | $625 | ' |
Income_Tax_Components_of_Net_D
Income Tax - Components of Net Deferred Tax Assets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Disclosure Income Tax Components Of Net Deferred Tax Assets Detail [Line Items] | ' | ' |
Postretirement benefits | $242 | $236 |
Intangible assets | -1,486 | -1,502 |
Investments in non-US subsidiaries | -278 | -282 |
Other, net | 101 | 128 |
Net deferred tax assets | ($1,421) | ($1,420) |
Income_Tax_Components_of_Conso
Income Tax - Components of Consolidated Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Current: | ' | ' | ' | ' |
United States b Federal | $131 | $203 | $277 | $319 |
United States b State | 12 | 20 | 19 | 35 |
Outside United States | 355 | 298 | 691 | 546 |
Current Income Tax Expense (Benefit), Total | 498 | 521 | 987 | 900 |
Deferred: | ' | ' | ' | ' |
United States b Federal | 4 | -42 | 11 | -24 |
United States b State | 3 | -3 | 2 | -3 |
Outside United States | 1 | -7 | -26 | 2 |
Valuation allowance | ' | -20 | ' | -20 |
Deferred income taxes | 8 | -72 | -13 | -45 |
Consolidated taxes on income | $506 | $449 | $974 | $855 |
Income_Tax_Reconciliation_of_U
Income Tax - Reconciliation of US Statutory Federal Tax Rate (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure Income Tax Reconciliation Of U S Statutory Federal Tax Rate Detail [Line Items] | ' | ' | ' | ' |
US federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
US state income taxes | ' | ' | ' | 1.00% |
Non-US income taxed at different rates | -11.00% | -12.00% | -11.00% | -12.00% |
Charges and credits (See Note 2) | ' | -6.00% | ' | -4.00% |
Other | -2.00% | ' | -2.00% | ' |
Effective income tax rate | 22.00% | 17.00% | 22.00% | 20.00% |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Charge recorded within loss from discontinued operations | ($205) | ($124) | ($205) | ($69) |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | $12,054 | $11,182 | $23,294 | $21,752 | ||||
Income before taxes | 2,327 | 2,673 | 4,403 | 4,291 | ||||
Operating Segments | Reservoir Characterization | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 3,095 | 3,067 | 5,947 | 5,868 | ||||
Income before taxes | 918 | 912 | 1,698 | 1,641 | ||||
Operating Segments | Drilling | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 4,653 | 4,239 | 8,984 | 8,301 | ||||
Income before taxes | 981 | 800 | 1,861 | 1,525 | ||||
Operating Segments | Production | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | 4,344 | 3,926 | 8,460 | 7,684 | ||||
Income before taxes | 725 | 625 | 1,462 | 1,181 | ||||
Eliminations & other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenue | -38 | -50 | -97 | -101 | ||||
Income before taxes | -3 | -59 | -32 | -104 | ||||
Pretax operating income | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income before taxes | 2,621 | 2,278 | 4,989 | 4,243 | ||||
Corporate & other | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income before taxes | -216 | [1] | -181 | [1] | -418 | [1] | -348 | [1] |
Interest income | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income before taxes | 8 | [2] | 4 | [2] | 15 | [3] | 9 | [3] |
Interest expense | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income before taxes | -86 | [4] | -92 | [4] | -183 | [5] | -185 | [5] |
Charges & credits | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income before taxes | ' | $664 | [6] | ' | $572 | [6] | ||
[1] | Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible assets and other nonoperating items. | |||||||
[2] | Interest income excludes amounts which are included in the segmentsb income ($5 million in 2014; $2 million in 2013). | |||||||
[3] | Interest income excludes amounts which are included in the segmentsb income ($10 million in 2014; $2 million in 2013). | |||||||
[4] | Interest expense excludes amounts which are included in the segmentsb income ($4 million in 2014; $6 million in 2013). | |||||||
[5] | Interest expense excludes amounts which are included in the segmentsb income ($10 million in 2014; $12 million in 2013). | |||||||
[6] | See Note 2 b Charges and Credits. |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information, by Segment (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Interest expense included in the segment results | $90 | $98 | $193 | $197 |
Interest Income Excluded From Segment Information | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Interest income included in the segment results | 5 | 2 | 10 | 2 |
Interest Expense Excluded From Segment Information | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Interest expense included in the segment results | $4 | $6 | $10 | $12 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits - Net Pension Cost for Schlumberger Pension Plans and US Postretirement Medical Plan (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
US Plan Assets | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost b benefits earned during period | $16 | $21 | $35 | $41 |
Interest cost on projected benefit obligation | 35 | 38 | 76 | 75 |
Expected return on plan assets | -44 | -51 | -96 | -103 |
Amortization of prior service cost | 3 | 3 | 6 | 6 |
Amortization of net loss | 24 | 31 | 44 | 63 |
Total pension cost | 34 | 42 | 65 | 82 |
International | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost b benefits earned during period | 29 | 34 | 60 | 67 |
Interest cost on projected benefit obligation | 56 | 63 | 128 | 124 |
Expected return on plan assets | -88 | -100 | -200 | -200 |
Amortization of prior service cost | 22 | 29 | 52 | 59 |
Amortization of net loss | 32 | 37 | 52 | 74 |
Total pension cost | 51 | 63 | 92 | 124 |
Postretirement medical plan | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost b benefits earned during period | 11 | 12 | 22 | 24 |
Interest cost on projected benefit obligation | 15 | 15 | 30 | 30 |
Expected return on plan assets | -10 | -9 | -21 | -18 |
Amortization of prior service cost | -1 | -1 | -2 | -2 |
Amortization of net loss | 3 | 8 | 4 | 15 |
Total pension cost | $18 | $25 | $33 | $49 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Balance | ($2,554) | ($3,888) |
Other comprehensive income (loss) before reclassifications | 13 | -270 |
Amounts reclassified from accumulated other comprehensive loss | 162 | 269 |
Income taxes | -20 | -31 |
Net other comprehensive income (loss) | 155 | -32 |
Balance | -2,399 | -3,920 |
Currency Translation Adjustments | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Balance | -1,068 | -918 |
Other comprehensive income (loss) before reclassifications | -30 | -243 |
Amounts reclassified from accumulated other comprehensive loss | ' | 9 |
Net other comprehensive income (loss) | -30 | -234 |
Balance | -1,098 | -1,152 |
Fair Value of Derivatives | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Balance | 29 | 30 |
Other comprehensive income (loss) before reclassifications | 13 | -104 |
Amounts reclassified from accumulated other comprehensive loss | 6 | 45 |
Net other comprehensive income (loss) | 19 | -59 |
Balance | 48 | -29 |
Pension and Other Postretirement Benefit Plans | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Balance | -1,691 | -3,141 |
Other comprehensive income (loss) before reclassifications | ' | -6 |
Amounts reclassified from accumulated other comprehensive loss | 156 | 215 |
Income taxes | -20 | -31 |
Net other comprehensive income (loss) | 136 | 178 |
Balance | -1,555 | -2,963 |
Unrealized Gains Marketable Securities | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' |
Balance | 176 | 141 |
Other comprehensive income (loss) before reclassifications | 30 | 83 |
Net other comprehensive income (loss) | 30 | 83 |
Balance | $206 | $224 |
Discontinued_Operations_Discon
Discontinued Operations - Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure Discontinued Operations Discontinued Operations Detail [Line Items] | ' | ' | ' | ' |
Revenue | ' | $4 | ' | $102 |
Loss before taxes | -205 | -124 | -205 | -63 |
Tax expense | ' | ' | ' | -6 |
Loss from discontinued operations | ($205) | ($124) | ($205) | ($69) |