Segment Information

9 Months Ended

Sep. 30, 2019

12. Segment Information

				(Stated in millions)

	Third Quarter 2019						Third Quarter 2018
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,651		$	360		$	1,587		$	361
Drilling		2,470			305			2,429			339
Production		3,153			288			3,249			320
Cameron		1,363			173			1,386			160
Eliminations & other		(96	)		(30	)		(147	)		(28	)
					1,096						1,152
Corporate & other ⁽¹⁾					(231	)					(234	)
Interest income ⁽²⁾					7						8
Interest expense ⁽³⁾					(151	)					(139	)
Charges and credits ⁽⁴⁾					(12,692	)					-
	$	8,541		$	(11,971	)	$	8,504		$	787

⁽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 ($1 million in 2019; $2 million in 2018).

⁽³⁾	^{Interest expense excludes amounts which are included in the segments’ income ($9 million in 2019; $8 million in 2018).}

⁽⁴⁾	^{See Note 2 – Charges and Credits.}

				(Stated in millions)

	Nine Months 2019						Nine Months 2018
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	4,669		$	959		$	4,602		$	987
Drilling		7,279			913			6,789			921
Production		9,120			740			9,458			853
Cameron		3,949			486			4,175			522
Eliminations & other		(328	)		(126	)		(388	)		(63	)
					2,972						3,220
Corporate & other ⁽¹⁾					(742	)					(699	)
Interest income ⁽²⁾					25						44
Interest expense ⁽³⁾					(433	)					(405	)
Charges and credits ⁽⁴⁾					(12,692	)					(184	)
	$	24,689		$	(10,870	)	$	24,636		$	1,976

⁽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 ($6 million in 2019; $7 million in 2018).

⁽³⁾	^{Interest expense excludes amounts which are included in the segments’ income ($29 million in both 2019 and 2018).}

⁽⁴⁾	^{See Note 2 – Charges and Credits.}

Revenue by geographic area was as follows:

					(Stated in millions)

	Third Quarter				Nine Months
	2019		2018		2019		2018
North America	$	2,850	$	3,189	$	8,389	$	9,164
Latin America		1,014		978		3,121		2,767
Europe/CIS/Africa		2,062		1,820		5,665		5,316
Middle East & Asia		2,553		2,417		7,343		7,079
Eliminations & other		62		100		171		310
	$	8,541	$	8,504	$	24,689	$	24,636

North America and International revenue disaggregated by segment was as follows:

							(Stated in millions)

	Third Quarter 2019
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	299		$	1,347		$	5		$	1,651
Drilling		553			1,861			56			2,470
Production		1,426			1,726			1			3,153
Cameron		589			772			2			1,363
Other		(17	)		(77	)		(2	)		(96	)
	$	2,850		$	5,629		$	62		$	8,541


	Third Quarter 2018
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	242		$	1,312		$	33		$	1,587
Drilling		601			1,760			68			2,429
Production		1,724			1,524			1			3,249
Cameron		644			713			29			1,386
Other		(22	)		(94	)		(31	)		(147	)
	$	3,189		$	5,215		$	100		$	8,504

				(Stated in millions)

	Nine Months 2019
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	756		$	3,898		$	15		$	4,669
Drilling		1,683			5,435			161			7,279
Production		4,218			4,900			2			9,120
Cameron		1,771			2,146			32			3,949
Other		(39	)		(250	)		(39	)		(328	)
	$	8,389		$	16,129		$	171		$	24,689


	Nine Months 2018
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	732		$	3,729		$	141		$	4,602
Drilling		1,733			4,884			172			6,789
Production		4,919			4,535			4			9,458
Cameron		1,842			2,250			83			4,175
Other		(62	)		(236	)		(90	)		(388	)
	$	9,164		$	15,162		$	310		$	24,636

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at both September 30, 2019 and December 31, 2018. 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 $2.6 billion at September 30, 2019, of which approximately 60% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $0.9 billion at both September 30, 2019 and December 31, 2018. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.