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Segment Information

12 Months Ended

Dec. 31, 2019

16. Segment Information

Schlumberger’s segments are as follows:

•

Reservoir Characterization – Consists of the principal Technologies involved in finding and defining hydrocarbon resources. These include WesternGeco, Wireline, Testing Services, Software Integrated Solutions, OneSurface and Integrated Services Management.

•

Drilling – Consists of the principal Technologies involved in the drilling and positioning of oil and gas wells. These include Bits & Drilling Tools, M-I SWACO, Drilling & Measurements, Land Rigs and Integrated Drilling Services.

•

Production – Consists of the principal Technologies involved in the lifetime production of oil and gas reservoirs. These include Well Services, OneStim, Completions, Artificial Lift and Asset Performance Solutions.

•

Cameron – Consists of the principal Technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities. These include OneSubsea, Surface Systems, Drilling Systems and Valves & Process Systems.

Financial information for the years ended December 31, 2019, 2018 and 2017, by segment, is as follows:

				(Stated in millions)

	2019
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	6,312		$	1,327		$	3,909	$	643	$	307
Drilling		9,721			1,216			5,724		540		616
Production		11,987			993			10,289		1,540		551
Cameron		5,336			613			4,102		233		166
Eliminations & other		(439	)		(171	)		1,414		216		84
					3,978
Goodwill and intangible assets								23,130
Cash and short term investments								2,167
All other assets								5,577
Corporate & other ⁽¹⁾					(957	)				417
Interest income ⁽²⁾					33
Interest expense ⁽³⁾					(571	)
Charges & credits ⁽⁴⁾					(12,901	)
	$	32,917		$	(10,418	)	$	56,312	$	3,589	$	1,724

				(Stated in millions)

	2018
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	6,173		$	1,347		$	4,306	$	667	$	296
Drilling		9,250			1,239			5,843		597		718
Production		12,394			1,052			12,625		1,417		886
Cameron		5,520			653			4,138		247		152
Eliminations & other		(522	)		(104	)		1,460		189		108
					4,187
Goodwill and intangible assets								33,658
Cash and short term investments								2,777
All other assets								5,700
Corporate & other ⁽¹⁾					(937	)				439
Interest income ⁽²⁾					52
Interest expense ⁽³⁾					(537	)
Charges & credits ⁽⁴⁾					(141	)
	$	32,815		$	2,624		$	70,507	$	3,556	$	2,160

				(Stated in millions)

	2017
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	6,476		$	1,184		$	4,714	$	981	$	304
Drilling		8,392			1,151			5,513		697		629
Production		10,630			936			12,450		1,240		889
Cameron		5,524			792			4,156		268		151
Eliminations & other		(582	)		(142	)		1,665		213		134
					3,921
Goodwill and intangible assets								34,472
Cash, short term investments and fixed income investments								5,089
All other assets								3,928
Corporate & other ⁽¹⁾					(934	)				438
Interest income ⁽²⁾					107
Interest expense ⁽³⁾					(513	)
Charges & credits ⁽⁴⁾					(3,764	)
	$	30,440		$	(1,183	)	$	71,987	$	3,837	$	2,107

⁽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 2016 acquisition of Cameron), certain centrally managed initiatives and other nonoperating items.

⁽²⁾	Interest income excludes amounts which are included in the segments’ income (2019: $8 million; 2018: $8 million; 2017: $21 million).

⁽³⁾	Interest expense excludes amounts which are included in the segments’ income (2019: $38 million; 2018: $38 million; 2017: $53 million).

⁽⁴⁾	See Note 3 – Charges and Credits.

Segment assets consist of receivables, inventories, fixed assets, multiclient seismic data and APS investments.

Depreciation and amortization includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and APS investments.

Revenue by geographic area for the years ended December 31, 2019, 2018 and 2017 is as follows:

(Stated in millions)

	2019		2018		2017
North America	$	10,843	$	11,984	$	9,487
Latin America		4,149		3,745		3,976
Europe/CIS/Africa		7,683		7,158		7,072
Middle East & Asia		10,017		9,543		9,394
Eliminations & other		225		385		511
	$	32,917	$	32,815	$	30,440

Revenue is based on the location where services are provided and products are sold.

During each of the three years ended December 31, 2019, 2018 and 2017, no single customer exceeded 10% of consolidated revenue.

Schlumberger did not have revenue from third-party customers in its country of domicile during the last three years. Revenue in the United States in 2019, 2018 and 2017 was $9.3 billion, $10.1 billion and $8.1 billion, respectively.

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

(Stated in millions)

	2019
	North America			International			Eliminations & other			Total
Reservoir Characterization	$	1,027		$	5,263		$	22		$	6,312
Drilling		2,220			7,294			207			9,721
Production		5,336			6,647			4			11,987
Cameron		2,318			2,975			43			5,336
Other		(58	)		(330	)		(51	)		(439	)
	$	10,843		$	21,849		$	225		$	32,917

(Stated in millions)

	2018
	North America			International			Eliminations & other			Total
Reservoir Characterization	$	992		$	5,031		$	150		$	6,173
Drilling		2,332			6,684			234			9,250
Production		6,312			6,077			5			12,394
Cameron		2,427			3,007			86			5,520
Other		(79	)		(353	)		(90	)		(522	)
	$	11,984		$	20,446		$	385		$	32,815

Fixed Assets less accumulated depreciation by geographic area are as follows:

(Stated in millions)

	2019		2018
North America	$	3,646	$	5,715
Latin America		824		898
Europe/CIS/Africa		2,258		2,364
Middle East & Asia		2,453		2,604
Unallocated		89		98
	$	9,270	$	11,679