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Pension and Other Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Weighted-Average Assumed Discount Rate, Compensation Increases and Expected Long-Term Rate of Return on Plan Assets Used to Determine Net Pension Cost for US and International Plans

The weighted-average assumed discount rate, compensation increases and expected long-term rate of return on plan assets used to determine the net pension cost for the US and International plans were as follows:



	US									International
	2019			2018			2017			2019			2018			2017
Discount rate		4.30	%		3.70	%		4.20	%		4.00	%		3.55	%		4.13	%
Compensation increases		4.00	%		4.00	%		4.00	%		4.83	%		4.81	%		4.81	%
Return on plan assets		6.60	%		7.25	%		7.25	%		7.22	%		7.40	%		7.40	%

Net Pension Cost (Credit) for Schlumberger Pension Plans and US Postretirement Medical Plan

Net pension cost (credit) for 2019, 2018 and 2017 included the following components:

(Stated in millions)

	US									International
	2019			2018			2017			2019			2018			2017
Service cost - benefits earned during the period	$	49		$	59		$	57		$	112		$	138		$	95
Interest cost on projected benefit obligation		180			167			175			333			304			306
Expected return on plan assets		(232	)		(248	)		(242	)		(592	)		(584	)		(541	)
Amortization of prior service cost		10			13			12			7			10			97
Amortization of net loss		29			47			39			70			140			120
Settlement charge		37			-			-			-			-			-
	$	73		$	38		$	41		$	(70	)	$	8		$	77

The net periodic benefit credit for the US postretirement medical plan included the following components:

(Stated in millions)

	2019			2018			2017
Service cost	$	29		$	32		$	29
Interest cost		45			43			46
Expected return on plan assets		(64	)		(63	)		(60	)
Amortization of prior service credit		(28	)		(28	)		(29	)
	$	(18	)	$	(16	)	$	(14	)

Weighted-Average Assumed Discount Rate and Compensation Increases Used to Determine Projected Benefit Obligations for US and International Plans

See Note 3 - Charges and Credits for details regarding the 2019 settlement charge.

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans were as follows:


	US						International
	2019			2018			2019			2018
Discount rate		3.30	%		4.30	%		3.27	%		4.00	%
Compensation increases		4.00	%		4.00	%		4.83	%		4.83	%

Changes In Projected Benefit Obligation Plan Assets And Funded Status Of Plans

The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:

(Stated in millions)

	US						International
	2019			2018			2019			2018
Change in Projected Benefit Obligations
Projected benefit obligation at beginning of year	$	4,278		$	4,603		$	8,111		$	8,752
Service cost		49			59			112			138
Interest cost		180			167			333			304
Contribution by plan participants		-			-			63			79
Actuarial (gains) losses		535			(349	)		1,304			(758	)
Currency effect		-			-			50			(87	)
Settlement		(240	)		-			(17	)		-
Benefits paid		(209	)		(202	)		(309	)		(317	)
Projected benefit obligation at end of year	$	4,593		$	4,278		$	9,647		$	8,111
Change in Plan Assets
Plan assets at fair value at beginning of year	$	3,748		$	4,058		$	7,872		$	8,507
Actual return on plan assets		931			(112	)		1,676			(370	)
Currency effect		-			-			59			(105	)
Company contributions		6			4			19			78
Contributions by plan participants		-			-			63			79
Settlement		(240	)		-			(17	)		-
Benefits paid		(209	)		(202	)		(309	)		(317	)
Plan assets at fair value at end of year	$	4,236		$	3,748		$	9,363		$	7,872
Unfunded Liability	$	(357	)	$	(530	)	$	(284	)	$	(239	)
Amounts Recognized in Balance Sheet
Postretirement Benefits	$	(357	)	$	(530	)	$	(602	)	$	(514	)
Other Assets		-			-			318			275
	$	(357	)	$	(530	)	$	(284	)	$	(239	)
Amounts Recognized in Accumulated Other Comprehensive Loss
Actuarial losses	$	622		$	852		$	1,638		$	1,440
Prior service cost		9			18			-			9
	$	631		$	870		$	1,638		$	1,449
Accumulated benefit obligation	$	4,345		$	4,070		$	9,376		$	7,895

Weighted-Average Allocation of Plan Assets and Target Allocation by Asset Category

The weighted-average allocation of plan assets and the target allocations by asset category are as follows:



	US									International
	Target			2019			2018			Target			2019			2018
Equity securities	20 - 30		%		22	%		21	%	47 - 59		%		50	%		50
Debt securities	63 - 77				70			70		27 - 33				31			32
Cash and cash equivalents	0 - 3				2			2		0 - 5				4			2
Alternative investments	5 - 10				6			7		15 - 22				15			16
		100	%		100	%		100	%		100	%		100	%		100

Fair Value of Schlumberger's Pension Plan Assets

The fair value of Schlumberger’s pension plan assets at December 31, 2019 and 2018, by asset category, is presented below and was determined based on valuation techniques categorized as follows:

•

Level One: The use of quoted prices in active markets for identical instruments.

•

Level Two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data.

•

Level Three: The use of significant unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing.

(Stated in millions)

	US Plan Assets
	2019								2018
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	73	$	59	$	14	$	-	$	80	$	44	$	36	$	-
Equity Securities:
US ^(a)		605		500		105		-		501		416		85		-
International^(b)		320		315		5		-		267		263		4		-
Debt Securities
Corporate bonds^(c)		1,687		-		1,687		-		1,517		-		1,517		-
Government and government-related debt securities^(d)		1,256		74		1,182		-		1,072		66		1,006		-
Collateralized mortgage obligations and mortgage backed securities^(e)		21		-		21		-		40		-		40		-
Alternative Investments:
Private equity ^(f)		181		-		-		181		185		-		-		185
Real estate ^(g)		93		-		-		93		86		-		-		86
Total	$	4,236	$	948	$	3,014	$	274	$	3,748	$	789	$	2,688	$	271

(Stated in millions)

	International Plan Assets
	2019								2018
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	351	$	166	$	185	$	-	$	157	$	75	$	82	$	-
Equity Securities:
US ^(a)		2,834		2,347		487		-		2,421		2,028		393		-
International^(b)		1,871		1,723		148		-		1,526		1,406		120		-
Debt Securities
Corporate bonds^(c)		1,105		-		1,105		-		923		-		923		-
Government and government-related debt securities^(d)		1,602		5		1,597		-		1,377		5		1,372		-
Collateralized mortgage obligations and mortgage backed securities^(e)		161		-		161		-		236		-		236		-
Alternative Investments:
Private equity ^(f)		623		-		-		623		565		-		-		565
Real estate ^(g)		183		-		-		183		150		-		-		150
Other		633		-		-		633		517		-		-		517
Total	$	9,363	$	4,241	$	3,683	$	1,439	$	7,872	$	3,514	$	3,126	$	1,232

^(a)	US equities include companies that are well-diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.

^(b)

International equities are invested in companies that are traded on exchanges outside the US and are well-diversified by industry sector, country and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets, with a small percentage in emerging markets.

^(c)	Corporate bonds consist primarily of investment grade bonds from diversified industries.

^(d)	Government and government-related debt securities are comprised primarily of inflation-protected US treasuries and, to a lesser extent, other government-related securities.

^(e)

Collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash flows from pools of mortgage loans, which are purchased from banks, mortgage companies, and other originators and then assembled into pools by governmental, quasi-governmental and private entities.

^(f)	Private equity includes investments in several funds of funds.

^(g)	Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.

Defined Benefit Plan Weighted Average Assumptions Used in Calculating Benefit Obligation and Net Periodic Benefit Cost for US Postretirement Medical Plan

The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic benefit cost for the US postretirement medical plan were as follows:



	Benefit Obligations						Net Periodic Benefit
	At December 31,						Cost for the Year
	2019			2018			2019			2018			2017
Discount rate		3.30	%		4.30	%		4.30	%		3.70	%		4.20	%
Return on plan assets	-			-				7.00	%		7.00	%		7.00	%
Current medical cost trend rate		7.50	%		7.50	%		7.50	%		7.00	%		7.25	%
Ultimate medical cost trend rate		4.50	%		4.50	%		4.50	%		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate	2031			2031			2031			2026			2026

Changes in Accumulated Postretirement Benefit Obligation, Plan Assets and Funded Status

The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:

(Stated in millions)

	2019			2018
Change in Projected Benefit Obligations
Benefit obligation at beginning of year	$	1,106		$	1,213
Service cost		29			32
Interest cost		45			43
Contribution by plan participants		8			8
Actuarial (gains) losses		65			(128	)
Benefits paid		(60	)		(62	)
Benefit obligation at end of year	$	1,193		$	1,106
Change in Plan Assets
Plan assets at fair value at beginning of year	$	997		$	1,094
Actual return on plan assets		240			(44	)
Company contributions		-			1
Contributions by plan participants		8			8
Benefits paid		(60	)		(62	)
Plan assets at fair value at end of year	$	1,185		$	997
Unfunded Liability	$	(8	)	$	(109	)
Amounts Recognized in Accumulated Other Comprehensive Loss
Actuarial (gains) losses	$	(98	)	$	14
Prior service credit		(158	)		(186	)
	$	(256	)	$	(172	)

Expected Benefits to be Paid Under US and International Pension Plans and Postretirement Medical Plan

The expected benefits to be paid under the US and International pension plans as well as the postretirement medical plan are as follows:

(Stated in millions)

	Pension Benefits				Postretirement
	US		International		Medical Plan
2020	$	218	$	333	$	52
2021	$	221	$	343	$	54
2022	$	225	$	353	$	55
2023	$	229	$	365	$	56
2024	$	233	$	366	$	57
2025-2029	$	1,213	$	2,057	$	317