NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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 three-month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. The December 31, 2019 balance sheet information has been derived from the Schlumberger 2019 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Schlumberger Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on January 22, 2020.
2. Charges and Credits
In connection with the preparation of its first-quarter 2020 financial statements, Schlumberger recorded the following charges:
|
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax
|
|
|
Tax
|
|
|
Net
|
|
Goodwill
|
$
|
3,070
|
|
|
$
|
-
|
|
|
$
|
3,070
|
|
Intangible assets
|
|
3,321
|
|
|
|
(815
|
)
|
|
|
2,506
|
|
APS investments
|
|
1,264
|
|
|
|
4
|
|
|
|
1,268
|
|
North America pressure pumping
|
|
587
|
|
|
|
(133
|
)
|
|
|
454
|
|
Severance
|
|
202
|
|
|
|
(7
|
)
|
|
|
195
|
|
Other
|
|
79
|
|
|
|
(9
|
)
|
|
|
70
|
|
Valuation allowance
|
|
-
|
|
|
|
164
|
|
|
|
164
|
|
|
$
|
8,523
|
|
|
$
|
(796
|
)
|
|
$
|
7,727
|
|
All of the pretax charges presented above are classified in Impairments & other in the Consolidated Statement of Income (Loss).
|
•
|
Geopolitical events that increased the supply of low-priced oil to the global market occurred at the same time that demand weakened due to the worldwide effects of the COVID-19 pandemic, leading to a collapse in oil prices during March 2020. As a result, Schlumberger’s market capitalization deteriorated significantly compared to the end of 2019. Schlumberger’s stock price reached a low during the first quarter of 2020 not seen since 1995. Additionally, the Philadelphia Oil Services Sector index, which is comprised of companies involved in the oil services sector, reached an all-time low. As a result of these facts, Schlumberger determined that it was more likely than not that the fair value of certain of its reporting units were less than their carrying value. Therefore, Schlumberger performed an interim goodwill impairment test.
|
Schlumberger had 11 reporting units with goodwill balances aggregating $16.0 billion. Schlumberger determined that the fair value of four of its reporting units, representing $4.5 billion of the goodwill, was substantially in excess of their carrying value. Schlumberger performed a detailed quantitative impairment assessment of the remaining seven reporting units, which represented $11.5 billion of goodwill. As a result of this assessment, Schlumberger concluded that the goodwill associated with each of these seven reporting units was impaired, resulting in a $3.1 billion goodwill impairment charge. This charge primarily relates to goodwill associated with the Drilling and Production segments.
Following the $3.1 billion goodwill impairment charge relating to these seven reporting units, six of these reporting units had a remaining goodwill balance. These six reporting units had goodwill balances which ranged between $0.2 billion and $5.0 billion and aggregated to $8.4 billion as of March 31, 2020.
8
Schlumberger used the income approach to estimate the fair value of its reporting units, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using Schlumberger’s estimate of the discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results. The market approach involves significant judgement involved in the selection of the appropriate peer group companies and valuation multiples.
Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. Schlumberger selected the assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. Schlumberger’s estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, particularly in the current volatile market, actual results may differ from those used in Schlumberger’s valuations which could result in additional impairment charges in the future.
The discount rates utilized to value Schlumberger’s reporting units were between 12.0% and 13.5%, depending on the risks and uncertainty inherent in the respective reporting unit as well as the size of the reporting unit. Assuming all other assumptions and inputs used in each of the respective discounted cash flow analysis were held constant, a 50-basis point increase or decrease in the discount rate assumptions would have changed the fair value of the seven reporting units, on average, by less than 5%.
|
•
|
The negative market indicators described above were triggering events that indicated that certain of Schlumberger’s long-lived intangible and tangible assets may be impaired. Recoverability testing indicated that certain long-lived assets were impaired. The estimated fair value of these assets was determined to be below their carrying value. As a result, Schlumberger recorded the following impairment charges:
|
|
-
|
$3.3 billion of intangible assets, of which $2.2 billion relates to Schlumberger’s 2016 acquisition of Cameron International Corporation and $1.1 billion relates to Schlumberger’s 2010 acquisition of Smith International, Inc. Following this impairment charge, the carrying value of the impaired intangible assets was approximately $0.9 billion.
|
|
-
|
$1.3 billion relating to the carrying value of certain Asset Performance Solutions (“APS”) projects in North America.
|
|
-
|
$0.6 billion of fixed assets associated with the pressure pumping business in North America.
|
The fair value of these impaired assets was estimated based on the present value of projected future cash flows that the underlying assets are expected to generate. Such estimates included unobservable inputs that required significant judgment.
|
•
|
$202 million of severance, the vast majority of which is expected to be paid during the second quarter of 2020.
|
|
•
|
$79 million of other restructuring charges, primarily consisting of the impairment of an equity method investment that was determined to be other-than-temporarily impaired.
|
|
•
|
$164 million relating to a valuation allowance against certain foreign tax credits in the US.
|
Schlumberger expects to record a significant charge relating to severance during the second quarter of 2020. However, at this time the amount cannot be reasonably estimated. Additionally, as market conditions evolve and Schlumberger further develops its strategy to deal with such conditions, it may result in further restructuring and/or impairment charges in future periods relating to, among other things, inventory, fixed assets and other assets.
There were no charges or credits recorded during the first three months of 2019.
9
3. Earnings (Loss) 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
Schlumberger
Loss
|
|
|
Average
Shares
Outstanding
|
|
|
Loss per
Share
|
|
|
Schlumberger
Net Income
|
|
|
Average
Shares
Outstanding
|
|
|
Earnings per
Share
|
|
First Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(7,376
|
)
|
|
|
1,387
|
|
|
$
|
(5.32
|
)
|
|
$
|
421
|
|
|
|
1,385
|
|
|
$
|
0.30
|
|
Unvested restricted stock
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
12
|
|
|
|
|
|
Diluted
|
$
|
(7,376
|
)
|
|
|
1,387
|
|
|
$
|
(5.32
|
)
|
|
$
|
421
|
|
|
|
1,397
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2020
|
|
|
2019
|
|
Employee stock options
|
|
51
|
|
|
|
43
|
|
Unvested restricted stock
|
|
16
|
|
|
|
11
|
|
4. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
2020
|
|
|
2019
|
|
Raw materials & field materials
|
$
|
1,949
|
|
|
$
|
1,857
|
|
Work in progress
|
|
542
|
|
|
|
515
|
|
Finished goods
|
|
1,657
|
|
|
|
1,758
|
|
|
$
|
4,148
|
|
|
$
|
4,130
|
|
5. Fixed Assets
A summary of fixed assets follows:
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
2020
|
|
|
2019
|
|
Property, plant & equipment
|
$
|
34,105
|
|
|
$
|
35,009
|
|
Less: Accumulated depreciation
|
|
25,555
|
|
|
|
25,739
|
|
|
$
|
8,550
|
|
|
$
|
9,270
|
|
Depreciation expense relating to fixed assets was $449 million and $512 million in the first quarter of 2020 and 2019, respectively.
10
6. Multiclient Seismic Data
The change in the carrying amount of multiclient seismic data for the three months ended March 31, 2020 was as follows:
(Stated in millions)
|
|
|
|
|
|
Balance at December 31, 2019
|
$
|
568
|
|
Capitalized in period
|
|
35
|
|
Charged to expense
|
|
(47
|
)
|
Balance at March 31, 2020
|
$
|
556
|
|
7. Intangible Assets
The gross book value, accumulated amortization and net book value of intangible assets were as follows:
|
(Stated in millions)
|
|
|
|
|
|
Mar. 31, 2020
|
|
|
Dec. 31, 2019
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net Book
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net Book
|
|
|
Book Value
|
|
|
Amortization
|
|
|
Value
|
|
|
Book Value
|
|
|
Amortization
|
|
|
Value
|
|
Customer relationships
|
$
|
1,758
|
|
|
$
|
442
|
|
|
$
|
1,316
|
|
|
$
|
3,779
|
|
|
$
|
868
|
|
|
$
|
2,911
|
|
Technology/technical know-how
|
|
1,387
|
|
|
|
512
|
|
|
|
875
|
|
|
|
2,498
|
|
|
|
779
|
|
|
|
1,719
|
|
Tradenames
|
|
772
|
|
|
|
146
|
|
|
|
626
|
|
|
|
1,885
|
|
|
|
264
|
|
|
|
1,621
|
|
Other
|
|
1,553
|
|
|
|
697
|
|
|
|
856
|
|
|
|
1,514
|
|
|
|
676
|
|
|
|
838
|
|
|
$
|
5,470
|
|
|
$
|
1,797
|
|
|
$
|
3,673
|
|
|
$
|
9,676
|
|
|
$
|
2,587
|
|
|
$
|
7,089
|
|
Amortization expense charged to income was $133 million during the first quarter of 2020 and $160 million during the first quarter of 2019.
Based on the net book value of intangible assets at March 31, 2020, amortization charged to income for the subsequent five years is estimated to be: remaining three quarters of 2020—$237 million; 2021—$307 million; 2022—$298 million; 2023—$280 million; 2024—$259 million; and 2025—$254 million.
11
8. Long-term Debt
A summary of Long-term Debt follows:
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
2020
|
|
|
2019
|
|
3.30% Senior Notes due 2021
|
$
|
1,598
|
|
|
$
|
1,597
|
|
3.65% Senior Notes due 2023
|
|
1,495
|
|
|
|
1,495
|
|
3.90% Senior Notes due 2028
|
|
1,445
|
|
|
|
1,444
|
|
2.40% Senior Notes due 2022
|
|
998
|
|
|
|
998
|
|
0.25% Notes due 2027
|
|
983
|
|
|
|
550
|
|
0.50% Notes due 2031
|
|
972
|
|
|
|
544
|
|
4.00% Senior Notes due 2025
|
|
929
|
|
|
|
929
|
|
4.30% Senior Notes due 2029
|
|
845
|
|
|
|
845
|
|
3.75% Senior Notes due 2024
|
|
746
|
|
|
|
746
|
|
1.00% Guaranteed Notes due 2026
|
|
656
|
|
|
|
665
|
|
2.65% Senior Notes due 2022
|
|
598
|
|
|
|
598
|
|
0.00% Notes due 2024
|
|
548
|
|
|
|
551
|
|
3.63% Senior Notes due 2022
|
|
295
|
|
|
|
294
|
|
7.00% Notes due 2038
|
|
207
|
|
|
|
208
|
|
5.95% Notes due 2041
|
|
114
|
|
|
|
114
|
|
5.13% Notes due 2043
|
|
99
|
|
|
|
99
|
|
4.00% Notes due 2023
|
|
81
|
|
|
|
81
|
|
3.70% Notes due 2024
|
|
55
|
|
|
|
55
|
|
4.20% Senior Notes due 2021
|
|
-
|
|
|
|
600
|
|
Commercial paper borrowings
|
|
2,745
|
|
|
|
2,222
|
|
Other
|
|
-
|
|
|
|
135
|
|
|
$
|
15,409
|
|
|
$
|
14,770
|
|
During the first quarter of 2020, Schlumberger issued €400 million of 0.25% Notes due 2027 and €400 million of 0.50% Notes due 2031.
The estimated fair value of Schlumberger’s Long-term Debt, based on quoted market prices at March 31, 2020 and December 31, 2019, was $15.1 billion and $15.3 billion, respectively.
At March 31, 2020, Schlumberger had separate committed credit facility agreements aggregating $6.25 billion with commercial banks, of which $3.5 billion was available and unused. These committed facilities support commercial paper programs in the United States and Europe, of which $2.75 billion matures in February 2023, $1.5 billion matures in July 2024 and $2.0 billion matures in February 2025. Interest rates and other terms of borrowing under these lines of credit vary by facility.
Subsequent to the end of the first quarter of 2020, Schlumberger entered into a €1.2 billion committed revolving credit facility. This one-year facility can be extended at Schlumberger’s option for up to an additional year. Schlumberger can potentially upsize this facility through syndication. As of April 22, 2020, no amounts have been drawn under this facility.
Borrowings under the commercial paper programs at March 31, 2020 were $2.75 billion, all of which was classified in Long-term debt in the Consolidated Balance Sheet. At December 31, 2019, borrowings under the commercial paper programs were $2.22 billion, all of which was classified in Long-term debt in the Consolidated Balance Sheet.
12
9. 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, to mitigate the exposure to changes in interest rates.
At March 31, 2020, Schlumberger had fixed rate debt aggregating $13.7 billion and variable rate debt aggregating $2.9 billion.
Foreign Currency Exchange Rate Risk
As a multinational company, Schlumberger generates revenue in more than 120 countries. Schlumberger’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of Schlumberger’s expenses are 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 uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Accumulated Other Comprehensive Loss. Amounts recorded in Accumulated Other Comprehensive Loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.
Schlumberger is also exposed to risks on future cash flows relating to certain of its fixed rate debt denominated in currencies other than the functional currency. Schlumberger uses cross-currency swaps to provide a hedge against these cash flow risks.
During 2017, a Canadian-dollar functional currency subsidiary of Schlumberger issued $1.1 billion of US-dollar denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of $1.1 billion in order to hedge changes in the fair value of its $0.5 billion of 2.20% Senior Notes due 2020 and its $0.6 billion of 2.65% Senior Notes due 2022. These cross-currency swaps effectively convert the US-dollar denominated notes to Canadian-dollar denominated debt with fixed annual interest rates of 1.97% and 2.52%, respectively.
During 2019, a US-dollar functional currency subsidiary of Schlumberger issued €1.5 billion of Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €1.5 billion in order to hedge changes in the fair value of its €0.5 billion 0.00% Notes due 2024, €0.5 billion 0.25% Notes due 2027 and €0.5 billion 0.50% Notes due 2031. These cross-currency swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.29%, 2.51% and 2.76%, respectively.
During the first quarter of 2020, a US-dollar functional currency subsidiary of Schlumberger issued €0.8 billion of Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €0.8 billion in order to hedge changes in the fair value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due 2031. These cross-currency swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.
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, and changes in the fair value are recognized in the Consolidated Statement of Income (Loss) as are changes in fair value of the hedged item.
At March 31, 2020, contracts were outstanding for the US dollar equivalent of $7.3 billion in various foreign currencies, of which $4.0 billion relates to hedges of debt denominated in currencies other than the functional currency.
13
At March 31, 2020, Schlumberger recognized a cumulative $202 million loss in Accumulated Other Comprehensive Loss relating to changes in the fair value of foreign currency forward contracts and cross-currency swaps.
The effect of derivative instruments designated as fair value and cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income (Loss) was as follows:
|
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) Recognized in
Income (Loss)
|
|
|
|
|
First Quarter
|
|
|
|
|
2020
|
|
|
2019
|
|
|
Consolidated Statement of Income (Loss) Classification
|
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
Cost of services/sales
|
Cross currency swaps
|
|
58
|
|
|
|
(16
|
)
|
|
Interest expense
|
|
$
|
57
|
|
|
$
|
(18
|
)
|
|
|
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
$
|
(9
|
)
|
|
$
|
6
|
|
|
Cost of services/sales
|
10. Contingencies
Schlumberger is 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 proceeding is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of any of these proceedings.
11. Segment Information
|
|
|
|
|
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2020
|
|
|
First Quarter 2019
|
|
|
|
|
|
|
Income (Loss)
|
|
|
|
|
|
|
Income (Loss)
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
Before
|
|
|
Revenue
|
|
|
Taxes
|
|
|
Revenue
|
|
|
Taxes
|
|
Reservoir Characterization
|
$
|
1,311
|
|
|
$
|
184
|
|
|
$
|
1,459
|
|
|
$
|
281
|
|
Drilling
|
|
2,291
|
|
|
|
285
|
|
|
|
2,387
|
|
|
|
307
|
|
Production
|
|
2,703
|
|
|
|
212
|
|
|
|
2,890
|
|
|
|
217
|
|
Cameron
|
|
1,254
|
|
|
|
121
|
|
|
|
1,259
|
|
|
|
148
|
|
Eliminations & other
|
|
(104
|
)
|
|
|
(26
|
)
|
|
|
(116
|
)
|
|
|
(45
|
)
|
|
|
|
|
|
|
776
|
|
|
|
|
|
|
|
908
|
|
Corporate & other (1)
|
|
|
|
|
|
(228
|
)
|
|
|
|
|
|
|
(273
|
)
|
Interest income (2)
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
10
|
|
Interest expense (3)
|
|
|
|
|
|
(129
|
)
|
|
|
|
|
|
|
(136
|
)
|
Charges and credits (4)
|
|
|
|
|
|
(8,523
|
)
|
|
|
|
|
|
|
-
|
|
|
$
|
7,455
|
|
|
$
|
(8,089
|
)
|
|
$
|
7,879
|
|
|
$
|
509
|
|
Certain prior period amounts have been reclassified to conform to the current period presentation.
(1)
|
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
|
(2)
|
Interest income excludes amounts which are included in the segments’ income ($- million in 2020; $1 million in 2019).
|
(3)
|
Interest expense excludes amounts which are included in the segments’ income ($7 million in 2020; $11 million in 2019).
|
(4)
|
See Note 2 – Charges and Credits.
|
14
Revenue by geographic area was as follows:
|
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2020
|
|
|
2019
|
|
North America
|
$
|
2,279
|
|
|
$
|
2,738
|
|
Latin America
|
|
945
|
|
|
|
992
|
|
Europe/CIS/Africa
|
|
1,751
|
|
|
|
1,707
|
|
Middle East & Asia
|
|
2,425
|
|
|
|
2,338
|
|
Eliminations & other
|
|
55
|
|
|
|
104
|
|
|
$
|
7,455
|
|
|
$
|
7,879
|
|
North America and International revenue disaggregated by segment was as follows:
|
|
|
|
|
|
|
|
|
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2020
|
|
|
North
|
|
|
|
|
|
|
Eliminations
|
|
|
|
|
|
|
America
|
|
|
International
|
|
|
& other
|
|
|
Total
|
|
Reservoir Characterization
|
$
|
199
|
|
|
$
|
1,107
|
|
|
$
|
5
|
|
|
$
|
1,311
|
|
Drilling
|
|
524
|
|
|
|
1,722
|
|
|
|
45
|
|
|
|
2,291
|
|
Production
|
|
1,066
|
|
|
|
1,637
|
|
|
|
-
|
|
|
|
2,703
|
|
Cameron
|
|
506
|
|
|
|
726
|
|
|
|
22
|
|
|
|
1,254
|
|
Other
|
|
(16
|
)
|
|
|
(71
|
)
|
|
|
(17
|
)
|
|
|
(104
|
)
|
|
$
|
2,279
|
|
|
$
|
5,121
|
|
|
$
|
55
|
|
|
$
|
7,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2019
|
|
|
North
|
|
|
|
|
|
|
Eliminations
|
|
|
|
|
|
|
America
|
|
|
International
|
|
|
& other
|
|
|
Total
|
|
Reservoir Characterization
|
$
|
216
|
|
|
$
|
1,239
|
|
|
$
|
4
|
|
|
$
|
1,459
|
|
Drilling
|
|
578
|
|
|
|
1,755
|
|
|
|
54
|
|
|
|
2,387
|
|
Production
|
|
1,373
|
|
|
|
1,516
|
|
|
|
1
|
|
|
|
2,890
|
|
Cameron
|
|
581
|
|
|
|
621
|
|
|
|
57
|
|
|
|
1,259
|
|
Other
|
|
(10
|
)
|
|
|
(94
|
)
|
|
|
(12
|
)
|
|
|
(116
|
)
|
|
$
|
2,738
|
|
|
$
|
5,037
|
|
|
$
|
104
|
|
|
$
|
7,879
|
|
Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at both March 31, 2020 and December 31, 2019. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.
Due to the nature of its business, Schlumberger does not have significant backlog. Total backlog was $3.0 billion at March 31, 2020, of which approximately 50% is expected to be recognized as revenue over the next 12 months.
Billings and cash collections in excess of revenue was $1.1 billion at March 31, 2020 and $0.9 billion at December 31, 2019. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.
15
12. Pension and Other Postretirement Benefit Plans
Net pension cost (credit) for the Schlumberger pension plans included the following components:
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2020
|
|
|
2019
|
|
|
US
|
|
|
Int'l
|
|
|
US
|
|
|
Int'l
|
|
Service cost
|
$
|
15
|
|
|
$
|
37
|
|
|
$
|
14
|
|
|
$
|
32
|
|
Interest cost
|
|
37
|
|
|
|
75
|
|
|
|
45
|
|
|
|
83
|
|
Expected return on plan assets
|
|
(58
|
)
|
|
|
(147
|
)
|
|
|
(58
|
)
|
|
|
(150
|
)
|
Amortization of prior service cost
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
2
|
|
Amortization of net loss
|
|
11
|
|
|
|
40
|
|
|
|
8
|
|
|
|
16
|
|
|
$
|
7
|
|
|
$
|
5
|
|
|
$
|
11
|
|
|
$
|
(17
|
)
|
The net periodic benefit credit for the Schlumberger US postretirement medical plan included the following components:
(Stated in millions)
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
2020
|
|
|
2019
|
|
Service cost
|
$
|
9
|
|
|
$
|
8
|
|
Interest cost
|
|
10
|
|
|
|
12
|
|
Expected return on plan assets
|
|
(17
|
)
|
|
|
(16
|
)
|
Amortization of prior service credit
|
|
(7
|
)
|
|
|
(7
|
)
|
|
$
|
(5
|
)
|
|
$
|
(3
|
)
|
16