Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | SLB |
Entity Registrant Name | SCHLUMBERGER LIMITED/NV |
Entity Central Index Key | 87,347 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 1,391,308,399 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Services | $ 5,023 | $ 7,574 | $ 15,741 | $ 24,897 |
Product sales | 1,996 | 898 | 4,962 | 2,834 |
Total Revenue | 7,019 | 8,472 | 20,703 | 27,731 |
Interest & other income | 54 | 60 | 153 | 155 |
Expenses | ||||
Cost of services | 4,355 | 6,064 | 13,482 | 19,703 |
Cost of sales | 1,787 | 734 | 4,435 | 2,325 |
Research & engineering | 253 | 273 | 750 | 819 |
General & administrative | 92 | 122 | 305 | 362 |
Impairments & other | 2,573 | 439 | ||
Merger & integration | 237 | 571 | ||
Interest | 149 | 86 | 431 | 254 |
Income (loss) before taxes | 200 | 1,253 | (1,691) | 3,984 |
Taxes on income (loss) | 10 | 250 | (259) | 859 |
Net income (loss) | 190 | 1,003 | (1,432) | 3,125 |
Net income attributable to noncontrolling interests | 14 | 14 | 50 | 37 |
Net income (loss) attributable to Schlumberger | $ 176 | $ 989 | $ (1,482) | $ 3,088 |
Basic earnings (loss) per share of Schlumberger | $ 0.13 | $ 0.78 | $ (1.10) | $ 2.43 |
Diluted earnings (loss) per share of Schlumberger | $ 0.13 | $ 0.78 | $ (1.10) | $ 2.42 |
Average shares outstanding: | ||||
Basic | 1,392 | 1,265 | 1,345 | 1,270 |
Assuming dilution | 1,401 | 1,272 | 1,345 | 1,278 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 190 | $ 1,003 | $ (1,432) | $ 3,125 |
Currency translation adjustments | ||||
Unrealized net change arising during the period | 27 | (166) | (26) | (260) |
Marketable securities | ||||
Unrealized loss arising during the period | (5) | (26) | (2) | (36) |
Cash flow hedges | ||||
Net loss on cash flow hedges | (18) | (13) | (86) | (123) |
Reclassification to net income of net realized loss | 29 | 21 | 109 | 161 |
Actuarial loss | ||||
Amortization to net income of net actuarial loss | 40 | 87 | 119 | 230 |
Prior service cost | ||||
Amortization to net income of net prior service cost | 25 | 25 | 76 | 76 |
Income taxes on pension and other postretirement benefit plans | (6) | (13) | (20) | (35) |
Comprehensive income (loss) | 282 | 918 | (1,262) | 3,138 |
Comprehensive income attributable to noncontrolling interests | 14 | 14 | 50 | 37 |
Comprehensive income (loss) attributable to Schlumberger | $ 268 | $ 904 | $ (1,312) | $ 3,101 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash | $ 3,441 | $ 2,793 |
Short-term investments | 7,315 | 10,241 |
Receivables less allowance for doubtful accounts (2016 - $371; 2015 - $333) | 9,565 | 8,780 |
Inventories | 4,572 | 3,756 |
Deferred taxes | 391 | 208 |
Other current assets | 1,141 | 1,134 |
Current assets total | 26,425 | 26,912 |
Fixed Income Investments, held to maturity | 354 | 418 |
Investments in Affiliated Companies | 1,283 | 3,311 |
Fixed Assets less accumulated depreciation | 13,004 | 13,415 |
Multiclient Seismic Data | 1,042 | 1,026 |
Goodwill | 24,957 | 15,605 |
Intangible Assets | 9,837 | 4,569 |
Other Assets | 3,692 | 2,749 |
Total Assets | 80,594 | 68,005 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 9,439 | 7,727 |
Estimated liability for taxes on income | 1,092 | 1,203 |
Long-term debt - current portion | 1,788 | 3,011 |
Short-term borrowings | 1,951 | 1,546 |
Dividends payable | 702 | 634 |
Current Liabilities Total | 14,972 | 14,121 |
Long-term Debt | 17,538 | 14,442 |
Postretirement Benefits | 1,293 | 1,434 |
Deferred Taxes | 2,622 | 1,075 |
Other Liabilities | 1,595 | 1,028 |
Total Liabilities | 38,020 | 32,100 |
Equity | ||
Common stock | 12,823 | 12,693 |
Treasury stock | (3,571) | (13,372) |
Retained earnings | 37,370 | 40,870 |
Accumulated other comprehensive loss | (4,388) | (4,558) |
Schlumberger stockholders' equity | 42,234 | 35,633 |
Noncontrolling interests | 340 | 272 |
Total equity | 42,574 | 35,905 |
Liabilities and stockholders equity | $ 80,594 | $ 68,005 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts on receivable | $ 371 | $ 333 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ (1,432) | $ 3,125 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Impairments and other charges | 3,144 | 439 | |
Depreciation and amortization | [1] | 3,078 | 3,115 |
Stock-based compensation expense | 210 | 250 | |
Pension and other postretirement benefits expense | 139 | 326 | |
Pension and other postretirement benefits funding | (127) | (292) | |
Earnings of equity method investments, less dividends received | (51) | (83) | |
Change in assets and liabilities: | |||
Decrease in receivables | [2] | 851 | 1,848 |
Decrease in inventories | [2] | 556 | 445 |
Decrease in other current assets | [2] | 241 | 93 |
Increase in other assets | [2] | (335) | (9) |
Decrease in accounts payable and accrued liabilities | [2] | (1,684) | (2,426) |
Decrease in estimated liability for taxes on income | [2] | (187) | (469) |
Increase (decrease) in other liabilities | [2] | 40 | (21) |
Other | [2] | (195) | 286 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,248 | 6,627 | |
Cash flows from investing activities: | |||
Capital expenditures | (1,401) | (1,783) | |
SPM investments | (869) | (350) | |
Multiclient seismic data costs capitalized | (497) | (336) | |
Business acquisitions and investments, net of cash acquired | (2,251) | (289) | |
Sale of investments, net | 4,439 | 939 | |
Other | (13) | (207) | |
NET CASH USED IN INVESTING ACTIVITIES | (592) | (2,026) | |
Cash flows from financing activities: | |||
Dividends paid | (1,951) | (1,786) | |
Proceeds from employee stock purchase plan | 231 | 296 | |
Proceeds from exercise of stock options | 113 | 127 | |
Stock repurchase program | (662) | (1,784) | |
Proceeds from issuance of long-term debt | 3,586 | 1,714 | |
Repayment of long-term debt | (4,749) | (2,815) | |
Net increase (decrease) in short-term borrowings | 401 | (41) | |
Other | (8) | (14) | |
NET CASH USED IN FINANCING ACTIVITIES | (3,039) | (4,303) | |
CASH FLOWS USED IN DISCONTINUED OPERATIONS - OPERATING ACTIVITIES | (233) | ||
Net increase in cash before translation effect | 617 | 65 | |
Translation effect on cash | 31 | (23) | |
Cash, beginning of period | 2,793 | 3,130 | |
Cash, end of period | $ 3,441 | $ 3,172 | |
[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. |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock Issued | Common Stock In Treasury | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance at Dec. 31, 2014 | $ 38,049 | $ 12,495 | $ (11,772) | $ 41,333 | $ (4,206) | $ 199 |
Net income (loss) | 3,125 | 3,088 | 37 | |||
Currency translation adjustments | (260) | (260) | ||||
Changes in unrealized gain on marketable securities | (36) | (36) | ||||
Changes in fair value of cash flow hedges | 38 | 38 | ||||
Pension and other postretirement benefit plans | 271 | 271 | ||||
Shares sold to optionees, less shares exchanged | 127 | (30) | 157 | |||
Vesting of restricted stock | (95) | 95 | ||||
Shares issued under employee stock purchase plan | 296 | 17 | 279 | |||
Stock repurchase program | (1,784) | (1,784) | ||||
Stock-based compensation expense | 250 | 250 | ||||
Dividends declared | (1,906) | (1,906) | ||||
Other | 9 | 5 | 2 | 2 | ||
Balance at Sep. 30, 2015 | 38,179 | 12,642 | (13,023) | 42,515 | (4,193) | 238 |
Balance at Dec. 31, 2015 | $ 35,905 | $ 12,693 | $ (13,372) | 40,870 | (4,558) | 272 |
Balance, shares at Dec. 31, 2015 | 1,256 | 1,434 | (178) | |||
Net income (loss) | $ (1,432) | (1,482) | 50 | |||
Currency translation adjustments | (26) | (26) | ||||
Changes in unrealized gain on marketable securities | (2) | (2) | ||||
Changes in fair value of cash flow hedges | 23 | 23 | ||||
Pension and other postretirement benefit plans | 175 | 175 | ||||
Shares sold to optionees, less shares exchanged | $ 113 | $ (52) | $ 165 | |||
Shares sold to optionees, less shares exchanged, shares | 2 | 2 | ||||
Vesting of restricted stock | (84) | $ 84 | ||||
Vesting of restricted stock, shares | 1 | 1 | ||||
Shares issued under employee stock purchase plan | $ 231 | (55) | $ 286 | |||
Shares issued under employee stock purchase plan, shares | 3 | 3 | ||||
Stock repurchase program | $ (662) | $ (662) | ||||
Stock repurchase program, shares | (9) | (9) | ||||
Stock-based compensation expense | $ 210 | 210 | ||||
Dividends declared | (2,018) | (2,018) | ||||
Acquisition of Cameron International Corporation | $ 10,084 | 103 | $ 9,924 | 57 | ||
Acquisition of Cameron International Corporation, shares | 138 | 138 | ||||
Other | $ (27) | 8 | $ 4 | (39) | ||
Balance at Sep. 30, 2016 | $ 42,574 | $ 12,823 | $ (3,571) | $ 37,370 | $ (4,388) | $ 340 |
Balance, shares at Sep. 30, 2016 | 1,391 | 1,434 | (43) |
CONSOLIDATED STATEMENT OF EQUI8
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (Unaudited) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Retained Earnings | ||
Dividends declared, per share | $ 1.50 | $ 1.50 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 nine-month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016. The December 31, 2015 balance sheet information has been derived from the Schlumberger 2015 audited financial statements. For further information, refer to the Consolidated Financial Statements New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers In November 2015, the FASB issued ASU 2015-17 , Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Charges and Credits
Charges and Credits | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Charges and Credits | 2. Charges and Credits Schlumberger recorded the following charges and credits during the first nine months of 2016: Third quarter of 2016: • In connection with Schlumberger’s acquisition of Cameron International Corporation (“Cameron”) (see Note 4 – Acquisition of Cameron Merger & integration in the Consolidated Statement of Income. Second quarter of 2016: • As a result of the persistent unfavorable oil and gas industry market conditions that continued to deteriorate in the first half of 2016, and the related impact on the first half operating results and expected customer activity levels, Schlumberger determined that the carrying values of certain assets were no longer recoverable and also took certain decisions that resulted in the following impairment and other charges: - $646 million of severance costs associated with headcount reductions. - $209 million impairment of pressure pumping equipment in North America. - $165 million impairment of facilities in North America. - $684 million of other fixed asset impairments primarily relating to other underutilized equipment. - $616 million write-down of the carrying value of certain inventory to its net realizable value. - $198 million impairment of certain multiclient seismic data, largely related to the US Gulf of Mexico. - $55 million of other costs, primarily relating to facility closure costs. The fair value of the impaired fixed assets and multiclient seismic data was estimated based on the projected present value of future cash flows that these assets are expected to generate. Such estimates included unobservable inputs that required significant judgments. Additional charges may be required in future periods should industry conditions worsen. The above items are classified in Impairments & other Consolidated Statement of Income • In connection with Schlumberger’s acquisition of Cameron, Schlumberger recorded $335 million of charges consisting of the following: $150 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value; $47 million relating to employee benefits for change-in-control arrangements and retention bonuses; $45 million of transaction costs, including advisory and legal fees; $40 million of facility closure costs, and $53 million of other merger and integration-related costs. These amounts are classified in Merger & integration Consolidated Statement of Income The following is a summary of the charges and credits recorded during the first nine months of 2016: (Stated in millions) Pretax Tax Net Workforce reduction $ 646 $ 63 $ 583 North America pressure pumping asset impairments 209 67 142 Facilities impairments 165 58 107 Other fixed asset impairments 684 52 632 Inventory write-downs 616 49 567 Multiclient seismic data impairment 198 62 136 Other restructuring charges 55 - 55 Amortization of inventory fair value adjustment 299 90 209 Merger-related employee benefits 93 17 76 Professional fees 45 10 35 Facility closure costs 51 13 38 Other merger and integration-related 83 11 72 $ 3,144 $ 492 $ 2,652 There were no charges or credits recorded during the first quarter of 2016. Schlumberger recorded the following charges and credits during the first quarter of 2015: • As a result of the severe fall in activity in North America, combined with the impact of lower international activity due to customer budget cuts driven by lower oil prices, Schlumberger decided to reduce its headcount during the first quarter of 2015. Schlumberger recorded a $390 million charge associated with this headcount reduction as well as an incentivized leave of absence program. • In February 2015, the Venezuelan government replaced the SICAD II exchange rate with a new foreign exchange market system known as SIMADI. The SIMADI exchange rate was approximately 192 Venezuelan Bolivares fuertes to the US dollar as of March 31, 2015. As a result, Schlumberger recorded a $49 million devaluation charge during the first quarter of 2015, reflecting the adoption of the SIMADI exchange rate. This change resulted in a reduction in the US dollar reported amount of local currency denominated revenues, expenses and, consequently, income before taxes and net income in Venezuela. The following is a summary of these charges, all of which were classified as Impairments & other Consolidated Statement of Income (Stated in millions) Pretax Tax Net Workforce reduction $ 390 $ 56 $ 334 Currency devaluation loss in Venezuela 49 - 49 $ 439 $ 56 $ 383 There were no charges or credits recorded during the second and third quarters of 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The following is a reconciliation from basic earnings (loss) per share of Schlumberger to diluted earnings (loss) per share of Schlumberger: (Stated in millions, except per share amounts) 2016 2015 Schlumberger Net Income Average Shares Outstanding Earnings per Share Schlumberger Net Income Average Shares Outstanding Earnings per Share Third Quarter Basic $ 176 1,392 $ 0.13 $ 989 1,265 $ 0.78 Assumed exercise of stock options - 4 - 3 Unvested restricted stock - 5 - 4 Diluted $ 176 1,401 $ 0.13 $ 989 1,272 $ 0.78 2016 2015 Schlumberger Net Loss Average Shares Outstanding Loss per Share Schlumberger Net Income Average Shares Outstanding Earnings per Share Nine Months Basic $ (1,482 ) $ 1,345 $ (1.10 ) $ 3,088 $ 1,270 $ 2.43 Assumed exercise of stock options - - - 4 Unvested restricted stock - - - 4 Diluted $ (1,482 ) $ 1,345 $ (1.10 ) $ 3,088 $ 1,278 $ 2.42 The number of outstanding options to purchase shares of Schlumberger common stock that 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) 2016 2015 Third Quarter 24 20 Nine Months 47 15 |
Acquisition of Cameron
Acquisition of Cameron | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition of Cameron | 4. Acquisition of Cameron On April 1, 2016, Schlumberger acquired all of the outstanding shares of Cameron, a leading provider of flow equipment products, systems and services to the oil and gas industry worldwide. The acquisition is expected to create technology-driven growth by integrating Schlumberger reservoir and well technologies with Cameron wellhead and surface equipment, flow control and processing technology. The combination of the two complementary technology portfolios provides the industry’s most comprehensive range of products and services, from exploration to production and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance. Under the terms of the merger agreement, Cameron became a wholly-owned subsidiary of Schlumberger. Each share of Cameron common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 0.716 shares of Schlumberger stock and $14.44 in cash. Calculation of Consideration Transferred The following details the fair value of the consideration transferred to effect the acquisition of Cameron: (stated in millions, except exchange ratio and per share amounts) Equity consideration: Number of shares of Cameron stock outstanding 192 Exchange ratio 0.716 Schlumberger shares of common stock issued 138 Schlumberger closing stock share price on April 1, 2016 $ 72.12 Equity consideration $ 9,924 Cash consideration: Number of shares of Cameron stock outstanding 192 Cash consideration per Cameron share $ 14.44 Cash consideration 2,776 Other: Fair value of replacement equity awards 103 Total fair value of the consideration transferred $ 12,803 Certain amounts reflect rounding adjustments Preliminary Allocation of Consideration Transferred to Net Assets Acquired The following amounts represents the preliminary estimates of the fair value of assets acquired and liabilities assumed in the merger. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts, which may differ materially from these preliminary estimates, will be finalized as soon as practicable, but no later than one year from the acquisition date. (Stated in millions) Cash $ 785 Short-term investments 1,448 Accounts receivable 1,691 Inventories (1) 2,422 Fixed assets 1,342 Intangible assets: Customer relationships (weighted-average life of 25 years) 2,371 Technology/Technical know-how (weighted-average life of 16 years) 1,736 Tradenames (weighted-average life of 25 years) 1,225 Other assets 633 Accounts payable and accrued liabilities (2,594 ) Long-term debt (2) (3,018 ) Deferred taxes (3) (1,691 ) Other liabilities (621 ) Sub-total $ 5,729 Less: Investment in OneSubsea (4) (2,065 ) Noncontrolling interests (57 ) Total identifiable net assets $ 3,607 Goodwill (5) 9,196 Total consideration transferred $ 12,803 (1) (2) (3) (4) (5) Supplemental Pro Forma Financial Information Cameron’s results of operations have been included in Schlumberger’s financial statements for periods subsequent to the closing of the acquisition on April 1, 2016. Businesses acquired from Cameron contributed revenues of approximately $3 billion and pretax operating income of $0.5 billion for the period from April 1, 2016 through September 30, 2016. The following supplemental pro forma results of operations assume that Cameron had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of Schlumberger and Cameron and has been adjusted to give effect to pro forma adjustments that are both directly attributable to the transaction and factually supportable. The pro forma amounts reflect certain adjustments to amortization expense, interest expense and income taxes resulting from purchase accounting. The pro forma results for the three months ended September 30, 2016 reflect adjustments to exclude after-tax merger and integration costs of $73 million and after-tax charges relating to the amortization of the inventory fair value adjustment of $104 million. The pro forma results for the nine months ended September 30, 2016 reflect adjustments to exclude after-tax merger and integration costs of $221 million and after-tax charges relating to the amortization of the inventory fair value adjustment of $209 million. As required by generally accepted accounting principles, the pro forma results for the three months ended September 30, 2015 have been adjusted to include $73 million of after-tax merger and integration charges. The pro forma results for the nine months ended September 30, 2015 have been adjusted to include after-tax adjustments for merger and integration costs of $221 million and the after-tax charges relating to the amortization of the inventory fair value adjustment of $209 million. The supplemental pro forma financial information presented below does not include any anticipated cost savings or the expected realization of other synergies associated with this transaction. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisition occurred on January 1, 2015, nor is it indicative of future results of operations. (Stated in millions, except per share amounts) Third Quarter Nine Months 2016 2015 2016 2015 Revenue $ 7,019 $ 10,694 $ 22,331 $ 34,473 Net income (loss) attributable to Schlumberger $ 353 $ 1,103 $ (1,028 ) $ 2,987 Diluted earnings (loss) per share $ 0.25 $ 0.78 $ (0.74 ) $ 2.10 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories A summary of inventories follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Raw materials & field materials $ 1,850 $ 2,300 Work in progress 600 178 Finished goods 2,122 1,278 $ 4,572 $ 3,756 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Fixed Assets | 6. Fixed Assets A summary of fixed assets follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Property, plant & equipment $ 39,959 $ 37,120 Less: Accumulated depreciation 26,955 23,705 $ 13,004 $ 13,415 Depreciation expense relating to fixed assets was as follows: (Stated in millions) 2016 2015 Third Quarter $ 627 $ 798 Nine Months 2,053 2,444 |
Multiclient Seismic Data
Multiclient Seismic Data | 9 Months Ended |
Sep. 30, 2016 | |
Multiclient Seismic Data [Abstract] | |
Multiclient Seismic Data | 7. Multiclient Seismic Data The change in the carrying amount of multiclient seismic data for the nine months ended September 30, 2016 was as follows: (Stated in millions) Balance at December 31, 2015 $ 1,026 Capitalized in period 497 Charged to expense (283 ) Impairment charge (see Note 2) (198 ) Balance at September 30, 2016 $ 1,042 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill The changes in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2016 were as follows: (Stated in millions) Reservoir Characterization Drilling Production Cameron Total Balance at December 31, 2015 $ 3,798 $ 8,584 $ 3,223 $ - $ 15,605 Acquisition of Cameron 790 1,490 1,170 5,746 9,196 Other acquisitions - 24 105 - 129 Reallocation 146 - - (146 ) - Impact of changes in exchange rates 9 13 5 - 27 Balance at September 30, 2016 $ 4,743 $ 10,111 $ 4,503 $ 5,600 $ 24,957 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 9. Intangible Assets The gross book value, accumulated amortization and net book value of intangible assets were as follows: (Stated in millions) Sept. 30, 2016 Dec. 31, 2015 Gross Accumulated Net Book Gross Accumulated Net Book Book Amortization Value Book Value Amortization Value Customer relationships $ 4,879 $ 806 $ 4,073 $ 2,489 $ 645 $ 1,844 Technology/technical know-how 3,614 778 2,836 1,864 653 1,211 Tradenames 2,847 432 2,415 1,625 367 1,258 Other 1,064 551 513 513 257 256 $ 12,404 $ 2,567 $ 9,837 $ 6,491 $ 1,922 $ 4,569 Amortization expense charged to income was as follows: (Stated in millions) 2016 2015 Third Quarter $ 156 $ 88 Nine Months $ 405 $ 267 Based on the net book value of intangible assets at September 30, 2016, amortization charged to income for the subsequent five years is estimated to be: remaining quarter of 2016—$166 million; 2017—$668 million; 2018—$660 million; 2019—$633 million; 2020—$596 million; and 2021—$571 million. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 10. Long-term Debt A summary of Long-term Debt (Stated in millions) Sept. 30, Dec. 31, 2016 2015 4.00% Senior Notes due 2025 $ 1,740 $ 1,741 3.30% Senior Notes due 2021 1,593 1,597 3.00% Senior Notes due 2020 1,591 1,591 3.65% Senior Notes due 2023 1,490 1,496 2.35% Senior Notes due 2018 1,296 1,297 4.20% Senior Notes due 2021 1,100 1,100 2.40% Senior Notes due 2022 996 999 3.63% Senior Notes due 2022 845 845 0.63% Guaranteed Notes due 2019 668 - 1.50% Guaranteed Notes due 2019 579 566 1.90% Senior Notes due 2017 499 499 6.38% Notes due 2018 (1) 301 - 7.00% Notes due 2038 (1) 215 - 4.50% Notes due 2021 (1) 138 - 5.95% Notes due 2041 (1) 116 - 3.60% Notes due 2022 (1) 110 - 5.13% Notes due 2043 (1) 99 - 4.00% Notes due 2023 (1) 83 - 3.70% Notes due 2024 (1) 56 - 1.25% Senior Notes due 2017 - 1,000 Commercial paper borrowings 2,849 1,000 Other 1,174 711 $ 17,538 $ 14,442 (1) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of Cameron, net of amounts repurchased subsequent to the closing of the transaction. The estimated fair value of Schlumberger’s Long-term Debt Borrowings under the commercial paper program at September 30, 2016 were $3.0 billion, of which $2.8 billion was classified within Long-term Debt Long-term debt – current portion Consolidated Balance Sheet Long-term Debt Long-term debt – current portion Consolidated Balance Sheet |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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. 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 receives interest at a fixed rate of 1.50% on the euro notional amount and pays 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 in income to largely offset the respective gains and losses recognized on changes in the fair value of the hedged debt. At September 30, 2016, Schlumberger had fixed rate debt of $14.4 billion and variable rate debt of $6.9 billion after taking into account the effect of the swap. Short-term investments and , totaled $7.7 billion at September 30, 2016. The carrying value of these investments approximated fair value, which was estimated using quoted market prices for those or similar investments. Foreign Currency Exchange Rate Risk As a multinational company, Schlumberger conducts its business in over 85 countries. Schlumberger’s functional currency is primarily the US dollar. 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 the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. Schlumberger is also exposed to risks on future cash flows relating to certain of its fixed rate debt that 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 Accumulated other comprehensive loss. Accumulated other comprehensive loss At September 30, 2016, Schlumberger recognized a cumulative net $16 million loss in Accumulated other comprehensive loss Schlumberger is exposed to changes in the fair value of assets and liabilities that are denominated in currencies other than the functional currency. While Schlumberger uses foreign currency forward contracts and foreign currency options to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the contracts is recorded on the Consolidated Balance Sheet, Consolidated Statement of Income At September 30, 2016, contracts were outstanding for the US dollar equivalent of $4.6 billion in various foreign currencies, of which $0.7 billion related to hedges of debt denominated in currencies other than the functional currency. The fair values of outstanding derivative instruments were as follows: (Stated in millions) Fair Value of Derivatives Consolidated Balance Sheet Classification Sept. 30, Dec. 31, 2016 2015 Derivative Assets Derivatives designated as hedges: Foreign exchange contracts $ 8 $ 4 Other current assets Foreign exchange contracts - 6 Other Assets $ 8 $ 10 Derivatives not designated as hedges: Foreign exchange contracts $ 40 $ 15 Other current assets Foreign exchange contracts 1 - Other Assets $ 49 $ 25 Derivative Liabilities Derivatives designated as hedges: Foreign exchange contracts $ 23 $ 37 Accounts payable and accrued liabilities Foreign exchange contracts 1 3 Other Liabilities Cross currency swap 32 22 Other Liabilities $ 56 $ 62 Derivatives not designated as hedges: Foreign exchange contracts $ 38 $ 25 Accounts payable and accrued liabilities Foreign exchange contracts 1 - Other Liabilities $ 95 $ 87 The fair value of all outstanding derivatives was determined using a model with inputs that are observable in the market or that 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 (Stated in millions) Gain (Loss) Recognized in Income Third Quarter Nine Months 2016 2015 2016 2015 Consolidated of Income Classification Derivatives designated as fair value hedges: Cross currency swap $ 5 $ (2 ) $ 9 $ (53 ) Interest Derivatives not designated as hedges: Foreign exchange contracts $ (28 ) $ (48 ) $ (166 ) $ (109 ) Cost of service/sales |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes A reconciliation of the US statutory federal tax rate (35%) to the consolidated effective income tax rate follows: Nine Months 2016 2015 US federal statutory rate 35 % 35 % State tax 2 - Non-US income taxed at different rates (22 ) (12 ) Charges and credits (See Note 2) (1 ) 1 Other 1 (2 ) 15 % 22 % The components of net deferred tax assets (liabilities) were as follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Postretirement benefits $ 260 $ 266 Intangible assets (3,171 ) (1,418 ) Investments in non-US subsidiaries (149 ) (152 ) Fixed assets, net (150 ) (176 ) Inventories 262 159 Other, net 717 454 $ (2,231 ) $ (867 ) The above deferred tax balances at September 30, 2016 and December 31, 2015 were net of valuation allowances relating to net operating losses in certain countries of $170 million and $162 million, respectively. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 13. Contingencies Schlumberger and its subsidiaries are party to various 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 any currently pending 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 | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information (Stated in millions) Third Quarter 2016 Third Quarter 2015 Income Income Before Before Revenue Taxes Revenue Taxes Reservoir Characterization $ 1,689 $ 322 $ 2,380 $ 616 Drilling 2,021 218 3,219 594 Production 2,083 98 2,915 327 Cameron 1,341 215 - - Eliminations & other (115 ) (38 ) (42 ) (16 ) Pretax operating income 815 1,521 Corporate & other (1) (267 ) (198 ) Interest income (2) 24 8 Interest expense (3) (135 ) (78 ) Charges and credits (4) (237 ) - $ 7,019 $ 200 $ 8,472 $ 1,253 (1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the acquisition of Cameron), certain centrally managed initiatives and other nonoperating items. (2 ) Interest income excludes amounts which are included in the segments’ income ($7 million in 2016; $5 million in 2015). (3) Interest expense excludes amounts which are included in the segments’ income ($14 million in 2016; $8 million in 2015). (4) See Note 2 – Charges and Credits . (Stated in millions) Nine Months 2016 Nine Months 2015 Income Income Before Before Revenue Taxes Revenue Taxes Reservoir Characterization $ 5,044 $ 913 $ 7,545 $ 1,944 Drilling 6,548 760 10,610 2,044 Production 6,529 396 9,679 1,268 Cameron 2,865 465 - - Eliminations & other (283 ) (72 ) (103 ) (34 ) Pretax operating income 2,462 5,222 Corporate & other (1) (679 ) (587 ) Interest income (2) 61 22 Interest expense (3) (391 ) (234 ) Charges and credits (4) (3,144 ) (439 ) $ 20,703 $ (1,691 ) $ 27,731 $ 3,984 (1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the acquisition of Cameron), certain centrally managed initiatives and other nonoperating items. (2 ) Interest income excludes amounts which are included in the segments’ income ($20 million in 2016; $16 million in 2015). (3) Interest expense excludes amounts which are included in the segments’ income ($40 million in 2016; $20 million in 2015). (4) See Note 2 – Charges and Credits . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | 15. Pension and Other Postretirement Benefit Plans Net pension cost for the Schlumberger pension plans included the following components: (Stated in millions) Third Quarter Nine Months 2016 2015 2016 2015 US Int'l US Int'l US Int'l US Int'l Service cost $ 16 $ 27 $ 22 $ 30 $ 47 $ 83 $ 65 $ 128 Interest cost 44 78 42 75 133 235 127 224 Expected return on plan assets (60 ) (128 ) (57 ) (125 ) (178 ) (391 ) (172 ) (381 ) Amortization of prior service cost 3 30 3 30 9 91 9 91 Amortization of net loss 20 20 30 54 60 59 92 128 $ 23 $ 27 $ 40 $ 64 $ 71 $ 77 $ 121 $ 190 The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components: (Stated in millions) Third Quarter Nine Months 2016 2015 2016 2015 Service cost $ 8 $ 11 $ 23 $ 32 Interest cost 11 12 35 36 Expected return on plan assets (14 ) (13 ) (43 ) (39 ) Amortization of prior service credit (8 ) (8 ) (24 ) (24 ) Amortization of net loss - 3 - 10 $ (3 ) $ 5 $ (9 ) $ 15 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following: (Stated in millions) Unrealized Pension and Currency Loss on Other Translation Marketable Cash Flow Postretirement Adjustments Securities Hedges Benefit Plans Total Balance, January 1, 2016 $ (2,053 ) $ - $ (39 ) $ (2,466 ) $ (4,558 ) Other comprehensive gain (loss) before reclassifications (26 ) (2 ) (86 ) - (114 ) Amounts reclassified from accumulated other comprehensive loss - - 109 195 304 Income taxes - - - (20 ) (20 ) Net other comprehensive (loss) income (26 ) (2 ) 23 175 170 Balance, September 30, 2016 $ (2,079 ) $ (2 ) $ (16 ) $ (2,291 ) $ (4,388 ) (Stated in millions) Unrealized Pension and Currency Gain/(Loss) on Other Translation Marketable Cash Flow Postretirement Adjustments Securities Hedges Benefit Plans Total Balance, January 1, 2015 $ (1,531 ) $ 10 $ (96 ) $ (2,589 ) $ (4,206 ) Other comprehensive loss before reclassifications (260 ) (36 ) (123 ) - (419 ) Amounts reclassified from accumulated other comprehensive loss - - 161 306 467 Income taxes - - - (35 ) (35 ) Net other comprehensive (loss) income (260 ) (36 ) 38 271 13 Balance, September 30, 2015 $ (1,791 ) $ (26 ) $ (58 ) $ (2,318 ) $ (4,193 ) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers In November 2015, the FASB issued ASU 2015-17 , Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Charges and Credits (Tables)
Charges and Credits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Summary of the Charges | The following is a summary of the charges and credits recorded during the first nine months of 2016: (Stated in millions) Pretax Tax Net Workforce reduction $ 646 $ 63 $ 583 North America pressure pumping asset impairments 209 67 142 Facilities impairments 165 58 107 Other fixed asset impairments 684 52 632 Inventory write-downs 616 49 567 Multiclient seismic data impairment 198 62 136 Other restructuring charges 55 - 55 Amortization of inventory fair value adjustment 299 90 209 Merger-related employee benefits 93 17 76 Professional fees 45 10 35 Facility closure costs 51 13 38 Other merger and integration-related 83 11 72 $ 3,144 $ 492 $ 2,652 The following is a summary of these charges, all of which were classified as Impairments & other Consolidated Statement of Income (Stated in millions) Pretax Tax Net Workforce reduction $ 390 $ 56 $ 334 Currency devaluation loss in Venezuela 49 - 49 $ 439 $ 56 $ 383 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | The following is a reconciliation from basic earnings (loss) per share of Schlumberger to diluted earnings (loss) per share of Schlumberger: (Stated in millions, except per share amounts) 2016 2015 Schlumberger Net Income Average Shares Outstanding Earnings per Share Schlumberger Net Income Average Shares Outstanding Earnings per Share Third Quarter Basic $ 176 1,392 $ 0.13 $ 989 1,265 $ 0.78 Assumed exercise of stock options - 4 - 3 Unvested restricted stock - 5 - 4 Diluted $ 176 1,401 $ 0.13 $ 989 1,272 $ 0.78 2016 2015 Schlumberger Net Loss Average Shares Outstanding Loss per Share Schlumberger Net Income Average Shares Outstanding Earnings per Share Nine Months Basic $ (1,482 ) $ 1,345 $ (1.10 ) $ 3,088 $ 1,270 $ 2.43 Assumed exercise of stock options - - - 4 Unvested restricted stock - - - 4 Diluted $ (1,482 ) $ 1,345 $ (1.10 ) $ 3,088 $ 1,278 $ 2.42 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of outstanding options to purchase shares of Schlumberger common stock that 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) 2016 2015 Third Quarter 24 20 Nine Months 47 15 |
Acquisition of Cameron (Tables)
Acquisition of Cameron (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Consideration Transferred to Effect Acquisition | The following details the fair value of the consideration transferred to effect the acquisition of Cameron: (stated in millions, except exchange ratio and per share amounts) Equity consideration: Number of shares of Cameron stock outstanding 192 Exchange ratio 0.716 Schlumberger shares of common stock issued 138 Schlumberger closing stock share price on April 1, 2016 $ 72.12 Equity consideration $ 9,924 Cash consideration: Number of shares of Cameron stock outstanding 192 Cash consideration per Cameron share $ 14.44 Cash consideration 2,776 Other: Fair value of replacement equity awards 103 Total fair value of the consideration transferred $ 12,803 |
Schedule of Preliminary Estimates of Fair Values of Identifiable Assets Acquired and Liabilities Assumed | The following amounts represents the preliminary estimates of the fair value of assets acquired and liabilities assumed in the merger. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts, which may differ materially from these preliminary estimates, will be finalized as soon as practicable, but no later than one year from the acquisition date. (Stated in millions) Cash $ 785 Short-term investments 1,448 Accounts receivable 1,691 Inventories (1) 2,422 Fixed assets 1,342 Intangible assets: Customer relationships (weighted-average life of 25 years) 2,371 Technology/Technical know-how (weighted-average life of 16 years) 1,736 Tradenames (weighted-average life of 25 years) 1,225 Other assets 633 Accounts payable and accrued liabilities (2,594 ) Long-term debt (2) (3,018 ) Deferred taxes (3) (1,691 ) Other liabilities (621 ) Sub-total $ 5,729 Less: Investment in OneSubsea (4) (2,065 ) Noncontrolling interests (57 ) Total identifiable net assets $ 3,607 Goodwill (5) 9,196 Total consideration transferred $ 12,803 (1) (2) (3) (4) (5) |
Schedule of Supplemental Pro Forma Financial Information from Results of Operations | The supplemental pro forma financial information presented below does not include any anticipated cost savings or the expected realization of other synergies associated with this transaction. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisition occurred on January 1, 2015, nor is it indicative of future results of operations. (Stated in millions, except per share amounts) Third Quarter Nine Months 2016 2015 2016 2015 Revenue $ 7,019 $ 10,694 $ 22,331 $ 34,473 Net income (loss) attributable to Schlumberger $ 353 $ 1,103 $ (1,028 ) $ 2,987 Diluted earnings (loss) per share $ 0.25 $ 0.78 $ (0.74 ) $ 2.10 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | A summary of inventories follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Raw materials & field materials $ 1,850 $ 2,300 Work in progress 600 178 Finished goods 2,122 1,278 $ 4,572 $ 3,756 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Summary of Fixed Assets | A summary of fixed assets follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Property, plant & equipment $ 39,959 $ 37,120 Less: Accumulated depreciation 26,955 23,705 $ 13,004 $ 13,415 |
Depreciation Expense Relating to Fixed Assets | Depreciation expense relating to fixed assets was as follows: (Stated in millions) 2016 2015 Third Quarter $ 627 $ 798 Nine Months 2,053 2,444 |
Multiclient Seismic Data (Table
Multiclient Seismic Data (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Multiclient Seismic Data [Abstract] | |
Change in Carrying Amount of Multiclient Seismic Data | The change in the carrying amount of multiclient seismic data for the nine months ended September 30, 2016 was as follows: (Stated in millions) Balance at December 31, 2015 $ 1,026 Capitalized in period 497 Charged to expense (283 ) Impairment charge (see Note 2) (198 ) Balance at September 30, 2016 $ 1,042 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2016 were as follows: (Stated in millions) Reservoir Characterization Drilling Production Cameron Total Balance at December 31, 2015 $ 3,798 $ 8,584 $ 3,223 $ - $ 15,605 Acquisition of Cameron 790 1,490 1,170 5,746 9,196 Other acquisitions - 24 105 - 129 Reallocation 146 - - (146 ) - Impact of changes in exchange rates 9 13 5 - 27 Balance at September 30, 2016 $ 4,743 $ 10,111 $ 4,503 $ 5,600 $ 24,957 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
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) Sept. 30, 2016 Dec. 31, 2015 Gross Accumulated Net Book Gross Accumulated Net Book Book Amortization Value Book Value Amortization Value Customer relationships $ 4,879 $ 806 $ 4,073 $ 2,489 $ 645 $ 1,844 Technology/technical know-how 3,614 778 2,836 1,864 653 1,211 Tradenames 2,847 432 2,415 1,625 367 1,258 Other 1,064 551 513 513 257 256 $ 12,404 $ 2,567 $ 9,837 $ 6,491 $ 1,922 $ 4,569 |
Amortization Expense Charged to Income for Intangible Assets | Amortization expense charged to income was as follows: (Stated in millions) 2016 2015 Third Quarter $ 156 $ 88 Nine Months $ 405 $ 267 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | A summary of Long-term Debt (Stated in millions) Sept. 30, Dec. 31, 2016 2015 4.00% Senior Notes due 2025 $ 1,740 $ 1,741 3.30% Senior Notes due 2021 1,593 1,597 3.00% Senior Notes due 2020 1,591 1,591 3.65% Senior Notes due 2023 1,490 1,496 2.35% Senior Notes due 2018 1,296 1,297 4.20% Senior Notes due 2021 1,100 1,100 2.40% Senior Notes due 2022 996 999 3.63% Senior Notes due 2022 845 845 0.63% Guaranteed Notes due 2019 668 - 1.50% Guaranteed Notes due 2019 579 566 1.90% Senior Notes due 2017 499 499 6.38% Notes due 2018 (1) 301 - 7.00% Notes due 2038 (1) 215 - 4.50% Notes due 2021 (1) 138 - 5.95% Notes due 2041 (1) 116 - 3.60% Notes due 2022 (1) 110 - 5.13% Notes due 2043 (1) 99 - 4.00% Notes due 2023 (1) 83 - 3.70% Notes due 2024 (1) 56 - 1.25% Senior Notes due 2017 - 1,000 Commercial paper borrowings 2,849 1,000 Other 1,174 711 $ 17,538 $ 14,442 (1) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of Cameron, net of amounts repurchased subsequent to the closing of the transaction. |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Outstanding Derivative Instruments | The fair values of outstanding derivative instruments were as follows: (Stated in millions) Fair Value of Derivatives Consolidated Balance Sheet Classification Sept. 30, Dec. 31, 2016 2015 Derivative Assets Derivatives designated as hedges: Foreign exchange contracts $ 8 $ 4 Other current assets Foreign exchange contracts - 6 Other Assets $ 8 $ 10 Derivatives not designated as hedges: Foreign exchange contracts $ 40 $ 15 Other current assets Foreign exchange contracts 1 - Other Assets $ 49 $ 25 Derivative Liabilities Derivatives designated as hedges: Foreign exchange contracts $ 23 $ 37 Accounts payable and accrued liabilities Foreign exchange contracts 1 3 Other Liabilities Cross currency swap 32 22 Other Liabilities $ 56 $ 62 Derivatives not designated as hedges: Foreign exchange contracts $ 38 $ 25 Accounts payable and accrued liabilities Foreign exchange contracts 1 - Other Liabilities $ 95 $ 87 |
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 (Stated in millions) Gain (Loss) Recognized in Income Third Quarter Nine Months 2016 2015 2016 2015 Consolidated of Income Classification Derivatives designated as fair value hedges: Cross currency swap $ 5 $ (2 ) $ 9 $ (53 ) Interest Derivatives not designated as hedges: Foreign exchange contracts $ (28 ) $ (48 ) $ (166 ) $ (109 ) Cost of service/sales |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of US Statutory Federal Tax Rate | A reconciliation of the US statutory federal tax rate (35%) to the consolidated effective income tax rate follows: Nine Months 2016 2015 US federal statutory rate 35 % 35 % State tax 2 - Non-US income taxed at different rates (22 ) (12 ) Charges and credits (See Note 2) (1 ) 1 Other 1 (2 ) 15 % 22 % |
Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) were as follows: (Stated in millions) Sept. 30, Dec. 31, 2016 2015 Postretirement benefits $ 260 $ 266 Intangible assets (3,171 ) (1,418 ) Investments in non-US subsidiaries (149 ) (152 ) Fixed assets, net (150 ) (176 ) Inventories 262 159 Other, net 717 454 $ (2,231 ) $ (867 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (Stated in millions) Third Quarter 2016 Third Quarter 2015 Income Income Before Before Revenue Taxes Revenue Taxes Reservoir Characterization $ 1,689 $ 322 $ 2,380 $ 616 Drilling 2,021 218 3,219 594 Production 2,083 98 2,915 327 Cameron 1,341 215 - - Eliminations & other (115 ) (38 ) (42 ) (16 ) Pretax operating income 815 1,521 Corporate & other (1) (267 ) (198 ) Interest income (2) 24 8 Interest expense (3) (135 ) (78 ) Charges and credits (4) (237 ) - $ 7,019 $ 200 $ 8,472 $ 1,253 (1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the acquisition of Cameron), certain centrally managed initiatives and other nonoperating items. (2 ) Interest income excludes amounts which are included in the segments’ income ($7 million in 2016; $5 million in 2015). (3) Interest expense excludes amounts which are included in the segments’ income ($14 million in 2016; $8 million in 2015). (4) See Note 2 – Charges and Credits . (Stated in millions) Nine Months 2016 Nine Months 2015 Income Income Before Before Revenue Taxes Revenue Taxes Reservoir Characterization $ 5,044 $ 913 $ 7,545 $ 1,944 Drilling 6,548 760 10,610 2,044 Production 6,529 396 9,679 1,268 Cameron 2,865 465 - - Eliminations & other (283 ) (72 ) (103 ) (34 ) Pretax operating income 2,462 5,222 Corporate & other (1) (679 ) (587 ) Interest income (2) 61 22 Interest expense (3) (391 ) (234 ) Charges and credits (4) (3,144 ) (439 ) $ 20,703 $ (1,691 ) $ 27,731 $ 3,984 (1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the acquisition of Cameron), certain centrally managed initiatives and other nonoperating items. (2 ) Interest income excludes amounts which are included in the segments’ income ($20 million in 2016; $16 million in 2015). (3) Interest expense excludes amounts which are included in the segments’ income ($40 million in 2016; $20 million in 2015). (4) See Note 2 – Charges and Credits . |
Pension and Other Postretirem38
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
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) Third Quarter Nine Months 2016 2015 2016 2015 US Int'l US Int'l US Int'l US Int'l Service cost $ 16 $ 27 $ 22 $ 30 $ 47 $ 83 $ 65 $ 128 Interest cost 44 78 42 75 133 235 127 224 Expected return on plan assets (60 ) (128 ) (57 ) (125 ) (178 ) (391 ) (172 ) (381 ) Amortization of prior service cost 3 30 3 30 9 91 9 91 Amortization of net loss 20 20 30 54 60 59 92 128 $ 23 $ 27 $ 40 $ 64 $ 71 $ 77 $ 121 $ 190 The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components: (Stated in millions) Third Quarter Nine Months 2016 2015 2016 2015 Service cost $ 8 $ 11 $ 23 $ 32 Interest cost 11 12 35 36 Expected return on plan assets (14 ) (13 ) (43 ) (39 ) Amortization of prior service credit (8 ) (8 ) (24 ) (24 ) Amortization of net loss - 3 - 10 $ (3 ) $ 5 $ (9 ) $ 15 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following: (Stated in millions) Unrealized Pension and Currency Loss on Other Translation Marketable Cash Flow Postretirement Adjustments Securities Hedges Benefit Plans Total Balance, January 1, 2016 $ (2,053 ) $ - $ (39 ) $ (2,466 ) $ (4,558 ) Other comprehensive gain (loss) before reclassifications (26 ) (2 ) (86 ) - (114 ) Amounts reclassified from accumulated other comprehensive loss - - 109 195 304 Income taxes - - - (20 ) (20 ) Net other comprehensive (loss) income (26 ) (2 ) 23 175 170 Balance, September 30, 2016 $ (2,079 ) $ (2 ) $ (16 ) $ (2,291 ) $ (4,388 ) (Stated in millions) Unrealized Pension and Currency Gain/(Loss) on Other Translation Marketable Cash Flow Postretirement Adjustments Securities Hedges Benefit Plans Total Balance, January 1, 2015 $ (1,531 ) $ 10 $ (96 ) $ (2,589 ) $ (4,206 ) Other comprehensive loss before reclassifications (260 ) (36 ) (123 ) - (419 ) Amounts reclassified from accumulated other comprehensive loss - - 161 306 467 Income taxes - - - (35 ) (35 ) Net other comprehensive (loss) income (260 ) (36 ) 38 271 13 Balance, September 30, 2015 $ (1,791 ) $ (26 ) $ (58 ) $ (2,318 ) $ (4,193 ) |
Charges and Credits - Additiona
Charges and Credits - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)VEF / $ | Sep. 30, 2016 | |
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | $ 0 | $ 0 | $ 0 | ||||
Exchange rate | VEF / $ | 192 | ||||||
Foreign currency transactions, description | This change resulted in a reduction in the US dollar reported amount of local currency denominated revenues, expenses and, consequently, income before taxes and net income in Venezuela. | ||||||
Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | $ 237,000,000 | $ 335,000,000 | |||||
Inventory fair value adjustments | Cameron | Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | 149,000,000 | 150,000,000 | |||||
Facility closure costs | Cameron | Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | 11,000,000 | 40,000,000 | |||||
Merger-related employee benefits | Cameron | Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | 46,000,000 | 47,000,000 | |||||
Other merger and integration-related | Cameron | Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | $ 31,000,000 | 53,000,000 | |||||
Workforce reduction | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 646,000,000 | ||||||
Restructuring and other charges | $ 390,000,000 | ||||||
North America pressure pumping asset impairments | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 209,000,000 | ||||||
Facilities impairments | North America | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 165,000,000 | ||||||
Other fixed asset impairments | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 684,000,000 | ||||||
Inventory Write Down | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 616,000,000 | ||||||
Multiclient seismic data impairment | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 198,000,000 | ||||||
Other restructuring costs | |||||||
Charges And Credits [Line Items] | |||||||
Impairment and other charges | 55,000,000 | ||||||
Professional fees | Cameron | Merger and Integration | |||||||
Charges And Credits [Line Items] | |||||||
Charges and credits, Pretax | $ 45,000,000 | ||||||
Currency Devaluation Loss In Venezuela | |||||||
Charges And Credits [Line Items] | |||||||
Restructuring and other charges | $ 49,000,000 |
Charges and Credits - Summary o
Charges and Credits - Summary of Charges (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | |
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | $ 0 | $ 0 | $ 0 | ||
Impairment And Other | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | $ 439,000,000 | $ 3,144,000,000 | |||
Charges and credits, Tax | 56,000,000 | 492,000,000 | |||
Charges and credits, Net | 383,000,000 | 2,652,000,000 | |||
Impairment And Other | Amortization of inventory fair value adjustment | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 299,000,000 | ||||
Charges and credits, Tax | 90,000,000 | ||||
Charges and credits, Net | 209,000,000 | ||||
Impairment And Other | Workforce reduction | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 390,000,000 | 646,000,000 | |||
Charges and credits, Tax | 56,000,000 | 63,000,000 | |||
Charges and credits, Net | 334,000,000 | 583,000,000 | |||
Impairment And Other | North America pressure pumping asset impairments | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 209,000,000 | ||||
Charges and credits, Tax | 67,000,000 | ||||
Charges and credits, Net | 142,000,000 | ||||
Impairment And Other | Facilities impairments | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 165,000,000 | ||||
Charges and credits, Tax | 58,000,000 | ||||
Charges and credits, Net | 107,000,000 | ||||
Impairment And Other | Other fixed asset impairments | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 684,000,000 | ||||
Charges and credits, Tax | 52,000,000 | ||||
Charges and credits, Net | 632,000,000 | ||||
Impairment And Other | Inventory Write Down | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 616,000,000 | ||||
Charges and credits, Tax | 49,000,000 | ||||
Charges and credits, Net | 567,000,000 | ||||
Impairment And Other | Multiclient seismic data impairment | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 198,000,000 | ||||
Charges and credits, Tax | 62,000,000 | ||||
Charges and credits, Net | 136,000,000 | ||||
Impairment And Other | Other restructuring charges | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 55,000,000 | ||||
Charges and credits, Net | 55,000,000 | ||||
Impairment And Other | Merger-related employee benefits | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 93,000,000 | ||||
Charges and credits, Tax | 17,000,000 | ||||
Charges and credits, Net | 76,000,000 | ||||
Impairment And Other | Professional fees | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 45,000,000 | ||||
Charges and credits, Tax | 10,000,000 | ||||
Charges and credits, Net | 35,000,000 | ||||
Impairment And Other | Facility closure costs | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 51,000,000 | ||||
Charges and credits, Tax | 13,000,000 | ||||
Charges and credits, Net | 38,000,000 | ||||
Impairment And Other | Other merger and integration-related | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 83,000,000 | ||||
Charges and credits, Tax | 11,000,000 | ||||
Charges and credits, Net | $ 72,000,000 | ||||
Impairment And Other | Currency Devaluation Loss In Venezuela | |||||
Investment In Joint Venture [Line Items] | |||||
Charges and credits, Pretax | 49,000,000 | ||||
Charges and credits, Net | $ 49,000,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schlumberger Net Income (Loss) | ||||
Basic | $ 176 | $ 989 | $ (1,482) | $ 3,088 |
Diluted | $ 176 | $ 989 | $ (1,482) | $ 3,088 |
Average Shares Outstanding | ||||
Basic | 1,392 | 1,265 | 1,345 | 1,270 |
Assumed exercise of stock options | 4 | 3 | 4 | |
Unvested restricted stock | 5 | 4 | 4 | |
Diluted | 1,401 | 1,272 | 1,345 | 1,278 |
Earnings (Loss) per Share | ||||
Basic | $ 0.13 | $ 0.78 | $ (1.10) | $ 2.43 |
Diluted | $ 0.13 | $ 0.78 | $ (1.10) | $ 2.42 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 24 | 20 | 47 | 15 |
Acquisition of Cameron - Additi
Acquisition of Cameron - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 02, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||
Revenues | $ 7,019 | $ 10,694 | $ 22,331 | $ 34,473 | ||
Cameron | ||||||
Business Acquisition [Line Items] | ||||||
Common stock received by Cameron shareholders | 71.60% | |||||
Cash payment in exchange of each share of common stock | $ 14.44 | |||||
Revenues | $ 3,000 | |||||
Pretax operating income | $ 500 | |||||
After-tax merger and integration charges included or excluded in pro forma amounts | 73 | $ 73 | 221 | 221 | ||
Cameron | Inventory Fair Value Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
After-tax amortization charges included in pro forma amounts | $ 104 | $ 209 | $ 209 |
Acquisition of Cameron - Schedu
Acquisition of Cameron - Schedule of Fair Value of Consideration Transferred to Effect Acquisition (Detail) - Cameron $ / shares in Units, shares in Millions, $ in Millions | Apr. 02, 2016USD ($)$ / sharesshares |
Equity consideration: | |
Number of shares of Cameron stock outstanding | shares | 192 |
Exchange ratio | 0.716 |
Schlumberger shares of common stock issued | shares | 138 |
Schlumberger closing stock share price on April 1, 2016 | $ / shares | $ 72.12 |
Equity consideration | $ 9,924 |
Cash consideration: | |
Number of shares of Cameron stock outstanding | shares | 192 |
Cash consideration per Cameron share | $ / shares | $ 14.44 |
Cash consideration | $ 2,776 |
Other: | |
Fair value of replacement equity awards | 103 |
Total fair value of the consideration transferred | $ 12,803 |
Acquisition of Cameron - Sche46
Acquisition of Cameron - Schedule of Preliminary Estimates of Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | ||
Business Acquisition [Line Items] | |||||
Cash | $ 785 | ||||
Short-term investments | 1,448 | ||||
Accounts receivable | 1,691 | ||||
Inventories | [1] | 2,422 | |||
Fixed assets | 1,342 | ||||
Intangible assets: | |||||
Other assets | 633 | ||||
Accounts payable and accrued liabilities | (2,594) | ||||
Long-term debt | [2] | (3,018) | |||
Deferred taxes | [3] | (1,691) | |||
Other liabilities | (621) | ||||
Sub-total | 5,729 | ||||
Noncontrolling interests | (57) | ||||
Total identifiable net assets | 3,607 | ||||
Goodwill | $ 24,957 | 9,196 | [4] | $ 15,605 | |
Total consideration transferred | 12,803 | ||||
Customer Relationships | |||||
Intangible assets: | |||||
Intangible assets | 2,371 | ||||
Technology/Technical know-how | |||||
Intangible assets: | |||||
Intangible assets | 1,736 | ||||
Tradenames | |||||
Intangible assets: | |||||
Intangible assets | 1,225 | ||||
OneSubsea | |||||
Intangible assets: | |||||
Investment in OneSubsea | [5] | $ (2,065) | |||
[1] | Schlumberger recorded an adjustment of $299 million to write-up the acquired inventory to its estimated fair value. Schlumberger’s cost of sales reflected this increased valuation as this inventory was sold. | ||||
[2] | In connection with the merger, Schlumberger assumed all of the debt obligations of Cameron, including their $2.75 billion of fixed rate notes. Schlumberger recorded a $244 million adjustment to increase the carrying amount of these notes to their estimated fair value. This adjustment is being amortized as a reduction of interest expense over the remaining term of the respective obligations. | ||||
[3] | In connection with the acquisition accounting, Schlumberger provided deferred taxes related to, among other items, the estimated fair value adjustments for acquired inventory, intangible assets and assumed debt obligations. | ||||
[4] | The goodwill recognized is primarily attributable to expected synergies that will result from combining the operations of Schlumberger and Cameron, as well as intangible assets which do not qualify for separate recognition. The amount of goodwill that is deductible for income tax purposes is not significant. | ||||
[5] | Prior to the completion of the merger, Cameron and Schlumberger operated OneSubsea, a joint venture that manufactured and developed products, systems and services for the subsea oil and gas market, which was 40% owned by Schlumberger and 60% owned by Cameron. OneSubsea is now owned 100% by Schlumberger. As a result of obtaining control of this joint venture, Schlumberger was required to remeasure its previously held equity interest in the joint venture to its acquisition-date fair value. Schlumberger determined that the estimated fair value of its previously held equity interest approximated its carrying value. Accordingly, Schlumberger did not recognize any gain or loss on this transaction. |
Acquisition of Cameron - Sche47
Acquisition of Cameron - Schedule of Preliminary Estimates of Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Millions | Apr. 02, 2016USD ($) | |
Business Acquisition [Line Items] | ||
Fair value adjustment to inventory | $ 299 | |
Debt obligations assumed | 3,018 | [1] |
Increase in fair value of notes | $ 244 | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Weighted-average life | 25 years | |
Technology/Technical know-how | ||
Business Acquisition [Line Items] | ||
Weighted-average life | 16 years | |
Tradenames | ||
Business Acquisition [Line Items] | ||
Weighted-average life | 25 years | |
Cameron | ||
Business Acquisition [Line Items] | ||
Debt obligations assumed | $ 2,750 | |
OneSubsea | ||
Business Acquisition [Line Items] | ||
Prior to completion of merger, ownership percentage in joint venture | 40.00% | |
Ownership percentage after completion of merger | 100.00% | |
OneSubsea | Cameron | ||
Business Acquisition [Line Items] | ||
Prior to completion of merger, ownership percentage in joint venture by parent | 60.00% | |
[1] | In connection with the merger, Schlumberger assumed all of the debt obligations of Cameron, including their $2.75 billion of fixed rate notes. Schlumberger recorded a $244 million adjustment to increase the carrying amount of these notes to their estimated fair value. This adjustment is being amortized as a reduction of interest expense over the remaining term of the respective obligations. |
Acquisition of Cameron - Sche48
Acquisition of Cameron - Schedule of Supplemental Pro Forma Financial Information from Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Combinations [Abstract] | ||||
Revenues | $ 7,019 | $ 10,694 | $ 22,331 | $ 34,473 |
Net income (loss) attributable to Schlumberger | $ 353 | $ 1,103 | $ (1,028) | $ 2,987 |
Diluted earnings (loss) per share | $ 0.25 | $ 0.78 | $ (0.74) | $ 2.10 |
Inventories - Summary of Invent
Inventories - Summary of Inventory (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials & field materials | $ 1,850 | $ 2,300 |
Work in progress | 600 | 178 |
Finished goods | 2,122 | 1,278 |
Inventories | $ 4,572 | $ 3,756 |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Property, plant & equipment | $ 39,959 | $ 37,120 |
Less: Accumulated depreciation | 26,955 | 23,705 |
Fixed assets less accumulated depreciation | $ 13,004 | $ 13,415 |
Fixed Assets - Depreciation Exp
Fixed Assets - Depreciation Expense Relating to Fixed Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense relating to fixed assets | $ 627 | $ 798 | $ 2,053 | $ 2,444 |
Multiclient Seismic Data - Chan
Multiclient Seismic Data - Change in Carrying Amount of Multiclient Seismic Data (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Multiclient Seismic Data [Abstract] | |
Opening balance | $ 1,026 |
Capitalized in period | 497 |
Charged to expense | (283) |
Impairment charge (see Note 2) | (198) |
Ending balance | $ 1,042 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 15,605 |
Acquisition of Cameron | 9,196 |
Other acquisitions | 129 |
Impact of changes in exchange rates | 27 |
Goodwill, Ending Balance | 24,957 |
Cameron | |
Goodwill [Line Items] | |
Acquisition of Cameron | 5,746 |
Reallocation | (146) |
Goodwill, Ending Balance | 5,600 |
Operating Segments | Reservoir Characterization | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 3,798 |
Acquisition of Cameron | 790 |
Reallocation | 146 |
Impact of changes in exchange rates | 9 |
Goodwill, Ending Balance | 4,743 |
Operating Segments | Drilling | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 8,584 |
Acquisition of Cameron | 1,490 |
Other acquisitions | 24 |
Impact of changes in exchange rates | 13 |
Goodwill, Ending Balance | 10,111 |
Operating Segments | Production | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 3,223 |
Acquisition of Cameron | 1,170 |
Other acquisitions | 105 |
Impact of changes in exchange rates | 5 |
Goodwill, Ending Balance | $ 4,503 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets by Major Class (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Book Value | $ 12,404 | $ 6,491 |
Accumulated Amortization | 2,567 | 1,922 |
Net Book Value | 9,837 | 4,569 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Book Value | 4,879 | 2,489 |
Accumulated Amortization | 806 | 645 |
Net Book Value | 4,073 | 1,844 |
Technology/Technical know-how | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Book Value | 3,614 | 1,864 |
Accumulated Amortization | 778 | 653 |
Net Book Value | 2,836 | 1,211 |
Tradenames | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Book Value | 2,847 | 1,625 |
Accumulated Amortization | 432 | 367 |
Net Book Value | 2,415 | 1,258 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Book Value | 1,064 | 513 |
Accumulated Amortization | 551 | 257 |
Net Book Value | $ 513 | $ 256 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Charged to Income for Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 156 | $ 88 | $ 405 | $ 267 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) $ in Millions | Sep. 30, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Estimated amortization charged to income, remaining quarter of 2016 | $ 166 |
Estimated amortization charged to income, 2017 | 668 |
Estimated amortization charged to income, 2018 | 660 |
Estimated amortization charged to income, 2019 | 633 |
Estimated amortization charged to income, 2020 | 596 |
Estimated amortization charged to income, 2021 | $ 571 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | $ 17,538 | $ 14,442 | |
Commercial paper borrowings | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 2,849 | 1,000 | |
4.00% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,740 | 1,741 | |
3.30% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,593 | 1,597 | |
3.00% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,591 | 1,591 | |
3.65% Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,490 | 1,496 | |
2.35% Senior Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,296 | 1,297 | |
4.20% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,100 | 1,100 | |
2.40% Senior Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 996 | 999 | |
3.63% Senior Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 845 | 845 | |
1.25% Senior Notes due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,000 | ||
0.63% Guaranteed Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 668 | ||
1.50% Guaranteed Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 579 | 566 | |
1.90% Senior Notes due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 499 | 499 | |
6.38% Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 301 | |
7.00% Notes due 2038 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 215 | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | 1,174 | $ 711 | |
4.50% Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 138 | |
5.95% Notes due 2041 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 116 | |
3.60% Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 110 | |
5.13% Notes due 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 99 | |
4.00% Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | 83 | |
3.70% Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt, carrying amount | [1] | $ 56 | |
[1] | (1) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of Cameron, net of amounts repurchased subsequent to the closing of the transaction. |
Long-term Debt - Summary of L58
Long-term Debt - Summary of Long-term Debt (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
4.00% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Debt instrument maturity date | 2,025 | 2,025 |
3.30% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.30% | 3.30% |
Debt instrument maturity date | 2,021 | 2,021 |
3.00% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.00% | 3.00% |
Debt instrument maturity date | 2,020 | 2,020 |
3.65% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.65% | 3.65% |
Debt instrument maturity date | 2,023 | 2,023 |
2.35% Senior Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.35% | 2.35% |
Debt instrument maturity date | 2,018 | 2,018 |
4.20% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.20% | 4.20% |
Debt instrument maturity date | 2,021 | 2,021 |
2.40% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.40% | 2.40% |
Debt instrument maturity date | 2,022 | 2,022 |
3.63% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.63% | 3.63% |
Debt instrument maturity date | 2,022 | 2,022 |
0.63% Guaranteed Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.63% | 0.63% |
Debt instrument maturity date | 2,019 | 2,019 |
1.50% Guaranteed Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.50% | 1.50% |
Debt instrument maturity date | 2,019 | 2,019 |
1.90% Senior Notes due 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.90% | 1.90% |
Debt instrument maturity date | 2,017 | 2,017 |
6.38% Notes due 2018 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.38% | 6.38% |
Debt instrument maturity date | 2,018 | 2,018 |
7.00% Notes due 2038 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.00% | 7.00% |
Debt instrument maturity date | 2,038 | 2,038 |
4.50% Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.50% | 4.50% |
Debt instrument maturity date | 2,021 | 2,021 |
5.95% Notes due 2041 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.95% | 5.95% |
Debt instrument maturity date | 2,041 | 2,041 |
3.60% Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.60% | 3.60% |
Debt instrument maturity date | 2,022 | 2,022 |
5.13% Notes due 2043 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.13% | 5.13% |
Debt instrument maturity date | 2,043 | 2,043 |
4.00% Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Debt instrument maturity date | 2,023 | 2,023 |
3.70% Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.70% | 3.70% |
Debt instrument maturity date | 2,024 | 2,024 |
1.25% Senior Notes due 2017 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.25% | 1.25% |
Debt instrument maturity date | 2,017 | 2,017 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 18,200 | $ 14,400 |
Long-term debt - current portion | 1,788 | 3,011 |
Long-term debt, carrying amount | 17,538 | 14,442 |
Commercial paper borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt - current portion | 200 | 1,400 |
Long-term debt, carrying amount | 2,849 | 1,000 |
Long-term debt | $ 3,000 | $ 2,400 |
Derivative Instruments and He60
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2016USD ($)Country | Dec. 31, 2013EUR (€) | |
Derivative [Line Items] | ||
Fixed rate debt aggregate, after taking into account the effects of the interest rate swaps | $ 14,400,000,000 | |
Variable rate debt aggregate, after taking into account the effects of the interest rate swaps | 6,900,000,000 | |
Short-term investments and fixed income investments, held to maturity | 7,700,000,000 | |
Recognized a cumulative net (loss) in Accumulated other comprehensive loss relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges | $ (16,000,000) | |
Minimum | ||
Derivative [Line Items] | ||
Number of countries in which Schlumberger conducts business | Country | 85 | |
1.50% Guaranteed Notes due 2019 | ||
Derivative [Line Items] | ||
Guaranteed notes face amount | € | € 500,000,000 | |
Cross currency swap | ||
Derivative [Line Items] | ||
Notional amount of interest rate swap | € | € 500,000,000 | |
Fixed Rate Debt | 1.50% Guaranteed Notes due 2019 | ||
Derivative [Line Items] | ||
Derivative swap interest rate | 1.50% | |
Floating Rate Debt | 1.50% Guaranteed Notes due 2019 | ||
Derivative [Line Items] | ||
Floating interest rate on securities | three-month LIBOR plus approximately 64 basis points | |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of interest rate swap | $ 4,600,000,000 | |
Foreign exchange contracts | Debt | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Notional amount of interest rate swap | $ 700,000,000 | |
London Interbank Offered Rate (LIBOR) | Floating Rate Debt | 1.50% Guaranteed Notes due 2019 | ||
Derivative [Line Items] | ||
Basis point | 0.64% |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities - Fair Values of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Assets | ||
Derivative Assets | $ 49 | $ 25 |
Derivative Liabilities | ||
Derivative Liabilities | 95 | 87 |
Derivatives designated as hedges | ||
Derivative Assets | ||
Derivative Assets | 8 | 10 |
Derivative Liabilities | ||
Derivative Liabilities | 56 | 62 |
Foreign exchange contracts | Derivatives designated as hedges | Other current assets | ||
Derivative Assets | ||
Derivative Assets | 8 | 4 |
Foreign exchange contracts | Derivatives designated as hedges | Other Assets | ||
Derivative Assets | ||
Derivative Assets | 6 | |
Foreign exchange contracts | Derivatives designated as hedges | Accounts payable and accrued liabilities | ||
Derivative Liabilities | ||
Derivative Liabilities | 23 | 37 |
Foreign exchange contracts | Derivatives designated as hedges | Other Liabilities | ||
Derivative Liabilities | ||
Derivative Liabilities | 1 | 3 |
Foreign exchange contracts | Derivatives not designated as hedges | Other current assets | ||
Derivative Assets | ||
Derivative Assets | 40 | 15 |
Foreign exchange contracts | Derivatives not designated as hedges | Other Assets | ||
Derivative Assets | ||
Derivative Assets | 1 | |
Foreign exchange contracts | Derivatives not designated as hedges | Accounts payable and accrued liabilities | ||
Derivative Liabilities | ||
Derivative Liabilities | 38 | 25 |
Foreign exchange contracts | Derivatives not designated as hedges | Other Liabilities | ||
Derivative Liabilities | ||
Derivative Liabilities | 1 | |
Cross currency swap | Derivatives designated as hedges | Other Liabilities | ||
Derivative Liabilities | ||
Derivative Liabilities | $ 32 | $ 22 |
Derivative Instruments and He62
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) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivatives designated as hedges | Cross currency swap | Interest | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income | $ 5 | $ (2) | $ 9 | $ (53) |
Derivatives not designated as hedges | Foreign exchange contracts | Cost of service/sales | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (Loss) Recognized in Income | $ (28) | $ (48) | $ (166) | $ (109) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
US federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Deferred tax assets, valuation allowances relating to net operating losses in certain countries | $ 170 | $ 170 | $ 162 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of US Statutory Federal Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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% |
State tax | 2.00% | |||
Non-US income taxed at different rates | (22.00%) | (12.00%) | ||
Other | 1.00% | (2.00%) | ||
Effective income tax rate | 15.00% | 22.00% | ||
Charges And Credits | ||||
Disclosure Income Tax Reconciliation Of U S Statutory Federal Tax Rate Detail [Line Items] | ||||
Charges and credits (See Note 2) | (1.00%) | 1.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Postretirement benefits | $ 260 | $ 266 |
Intangible assets | (3,171) | (1,418) |
Investments in non-US subsidiaries | (149) | (152) |
Fixed assets, net | (150) | (176) |
Inventories | 262 | 159 |
Other, net | 717 | 454 |
Net deferred tax assets (liabilities) | $ (2,231) | $ (867) |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | $ 7,019 | $ 8,472 | $ 20,703 | $ 27,731 | |||||
Pretax operating income | 815 | 1,521 | 2,462 | 5,222 | |||||
Interest | 149 | 86 | 431 | 254 | |||||
Income Before Taxes | 200 | 1,253 | (1,691) | 3,984 | |||||
Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 7 | 5 | 20 | 16 | |||||
Interest | 14 | 8 | 40 | 20 | |||||
Operating Segments | Reservoir Characterization | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 1,689 | 2,380 | 5,044 | 7,545 | |||||
Pretax operating income | 322 | 616 | 913 | 1,944 | |||||
Operating Segments | Drilling | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 2,021 | 3,219 | 6,548 | 10,610 | |||||
Pretax operating income | 218 | 594 | 760 | 2,044 | |||||
Operating Segments | Production | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 2,083 | 2,915 | 6,529 | 9,679 | |||||
Pretax operating income | 98 | 327 | 396 | 1,268 | |||||
Operating Segments | Cameron | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | 1,341 | 2,865 | |||||||
Pretax operating income | 215 | 465 | |||||||
Eliminations & other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenue | (115) | (42) | (283) | (103) | |||||
Pretax operating income | (38) | (16) | (72) | (34) | |||||
Material Reconciling Items | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Corporate & other | [1] | (267) | (198) | (679) | (587) | ||||
Interest income | 24 | [2] | 8 | [2] | 61 | [3] | 22 | [3] | |
Interest | (135) | [4] | $ (78) | [4] | (391) | [5] | (234) | [5] | |
Restructuring and other charges | [6] | $ (237) | $ (3,144) | $ (439) | |||||
[1] | Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the acquisition of Cameron), certain centrally managed initiatives and other nonoperating items. | ||||||||
[2] | Interest income excludes amounts which are included in the segments’ income ($7 million in 2016; $5 million in 2015). | ||||||||
[3] | Interest income excludes amounts which are included in the segments’ income ($20 million in 2016; $16 million in 2015). | ||||||||
[4] | Interest expense excludes amounts which are included in the segments’ income ($14 million in 2016; $8 million in 2015). | ||||||||
[5] | Interest expense excludes amounts which are included in the segments’ income ($40 million in 2016; $20 million in 2015). | ||||||||
[6] | See Note 2 – Charges and Credits. |
Segment Information - Schedul67
Segment Information - Schedule of Segment Reporting Information, by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Interest expense | $ 149 | $ 86 | $ 431 | $ 254 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 7 | 5 | 20 | 16 |
Interest expense | $ 14 | $ 8 | $ 40 | $ 20 |
Pension and Other Postretirem68
Pension and Other Postretirement Benefit Plans - Net Pension Cost for Schlumberger Pension Plans and US Postretirement Medical Plan (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
US Plan Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 16 | $ 22 | $ 47 | $ 65 |
Interest cost | 44 | 42 | 133 | 127 |
Expected return on plan assets | (60) | (57) | (178) | (172) |
Amortization of prior service cost | 3 | 3 | 9 | 9 |
Amortization of net loss | 20 | 30 | 60 | 92 |
Total pension cost | 23 | 40 | 71 | 121 |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 27 | 30 | 83 | 128 |
Interest cost | 78 | 75 | 235 | 224 |
Expected return on plan assets | (128) | (125) | (391) | (381) |
Amortization of prior service cost | 30 | 30 | 91 | 91 |
Amortization of net loss | 20 | 54 | 59 | 128 |
Total pension cost | 27 | 64 | 77 | 190 |
Postretirement medical plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 8 | 11 | 23 | 32 |
Interest cost | 11 | 12 | 35 | 36 |
Expected return on plan assets | (14) | (13) | (43) | (39) |
Amortization of prior service cost | (8) | (8) | (24) | (24) |
Amortization of net loss | 3 | 10 | ||
Total pension cost | $ (3) | $ 5 | $ (9) | $ 15 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (4,558) | $ (4,206) |
Other comprehensive gain (loss) before reclassifications | (114) | (419) |
Amounts reclassified from accumulated other comprehensive loss | 304 | 467 |
Income taxes | (20) | (35) |
Net other comprehensive (loss) income | 170 | 13 |
Ending Balance | (4,388) | (4,193) |
Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (2,053) | (1,531) |
Other comprehensive gain (loss) before reclassifications | (26) | (260) |
Net other comprehensive (loss) income | (26) | (260) |
Ending Balance | (2,079) | (1,791) |
Unrealized Gain/(Loss) on Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 10 | |
Other comprehensive gain (loss) before reclassifications | (2) | (36) |
Net other comprehensive (loss) income | (2) | (36) |
Ending Balance | (2) | (26) |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (39) | (96) |
Other comprehensive gain (loss) before reclassifications | (86) | (123) |
Amounts reclassified from accumulated other comprehensive loss | 109 | 161 |
Net other comprehensive (loss) income | 23 | 38 |
Ending Balance | (16) | (58) |
Pension and Other Postretirement Benefit Plans | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (2,466) | (2,589) |
Amounts reclassified from accumulated other comprehensive loss | 195 | 306 |
Income taxes | (20) | (35) |
Net other comprehensive (loss) income | 175 | 271 |
Ending Balance | $ (2,291) | $ (2,318) |