XML 42 R24.htm IDEA: XBRL DOCUMENT v3.21.4
Pension and Other Benefit Plans
 12 Months Ended
Dec. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Pension and Other Benefit Plans

16.  Pension and Other Postretirement Benefit Plans

Pension Plans

Schlumberger sponsors several defined benefit pension plans that cover substantially all US employees hired prior to October 1, 2004. The benefits are based on years of service and compensation, on a career-average pay basis.

In addition to the US defined benefit pension plans, Schlumberger sponsors several other international defined benefit pension plans. The most significant of these international plans are the International Staff Pension Plan and the UK pension plan (collectively, the “International plans”). The International Staff Pension Plan covers certain international employees hired prior to July 1, 2014 and is based on years of service and compensation on a career-average pay basis. The UK plan covers employees hired prior to April 1, 1999, and is based on years of service and compensation, on a final salary basis.

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

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Discount rate

 

2.60

%

 

 

3.30

%

 

 

4.30

%

 

 

2.38

%

 

 

3.27

%

 

 

4.00

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.00

%

 

 

4.82

%

 

 

4.83

%

 

 

4.83

%

Return on plan assets

 

6.60

%

 

 

6.60

%

 

 

6.60

%

 

 

6.73

%

 

 

6.71

%

 

 

7.22

%

 

Net pension cost (credit) included the following components:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

International

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Service cost

$

44

 

 

$

55

 

 

$

49

 

 

$

117

 

 

$

140

 

 

$

112

 

Interest cost

 

127

 

 

 

148

 

 

 

180

 

 

 

267

 

 

 

301

 

 

 

333

 

Expected return on plan assets

 

(254

)

 

 

(233

)

 

 

(232

)

 

 

(640

)

 

 

(591

)

 

 

(592

)

Amortization of prior service cost

 

-

 

 

 

8

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

7

 

Amortization of net loss

 

44

 

 

 

41

 

 

 

29

 

 

 

227

 

 

 

159

 

 

 

70

 

Settlement charge

 

-

 

 

 

-

 

 

 

37

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

(39

)

 

$

19

 

 

$

73

 

 

$

(29

)

 

$

9

 

 

$

(70

)

 

 

 

During 2019, certain of Schlumberger’s deferred benefit pension plans offered former Schlumberger employees, who had not yet commenced receiving their pension benefits, an opportunity to receive a lump sum payout of their vested pension benefit.  Schlumberger’s pension plans paid $257 million from pension plan assets to those who accepted this offer, thereby reducing its pension benefit obligations.  These transactions resulted in a non-cash pension settlement charge of $37 million, representing the immediate recognition of the related deferred actuarial losses in Accumulated Other Comprehensive Loss, in the fourth quarter of 2019.  See Note 3 – Charges and Credits.

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

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

3.00

%

 

 

2.60

%

 

 

2.83

%

 

 

2.38

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.83

%

 

 

4.82

%

 

 

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

International

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

$

4,940

 

 

$

4,593

 

 

$

11,140

 

 

$

9,647

 

Service cost

 

44

 

 

 

55

 

 

 

117

 

 

 

140

 

Interest cost

 

127

 

 

 

148

 

 

 

267

 

 

 

301

 

Contribution by plan participants

 

-

 

 

 

-

 

 

 

53

 

 

 

94

 

Actuarial (gains) losses

 

(211

)

 

 

370

 

 

 

(586

)

 

 

1,228

 

Currency effect

 

-

 

 

 

-

 

 

 

(18

)

 

 

68

 

Benefits paid

 

(232

)

 

 

(226

)

 

 

(355

)

 

 

(338

)

Projected benefit obligation at end of year

$

4,668

 

 

$

4,940

 

 

$

10,618

 

 

$

11,140

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

4,776

 

 

$

4,236

 

 

$

10,493

 

 

$

9,363

 

Actual return on plan assets

 

145

 

 

 

760

 

 

 

1,040

 

 

 

1,282

 

Currency effect

 

-

 

 

 

-

 

 

 

(28

)

 

 

72

 

Company contributions

 

7

 

 

 

6

 

 

 

18

 

 

 

20

 

Contributions by plan participants

 

-

 

 

 

-

 

 

 

53

 

 

 

94

 

Benefits paid

 

(232

)

 

 

(226

)

 

 

(355

)

 

 

(338

)

Plan assets at fair value at end of year

$

4,696

 

 

$

4,776

 

 

$

11,221

 

 

$

10,493

 

Asset / (Unfunded Liability)

$

28

 

 

$

(164

)

 

$

603

 

 

$

(647

)

Amounts Recognized in Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

$

(212

)

 

$

(199

)

 

$

(19

)

 

$

(849

)

Other Assets

 

240

 

 

 

35

 

 

 

622

 

 

 

202

 

 

$

28

 

 

$

(164

)

 

$

603

 

 

$

(647

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

$

276

 

 

$

423

 

 

$

1,174

 

 

$

1,981

 

Prior service cost

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

$

276

 

 

$

424

 

 

$

1,174

 

 

$

1,981

 

Accumulated benefit obligation

$

4,484

 

 

$

4,739

 

 

$

10,370

 

 

$

10,844

 

 

The asset / (unfunded liability) represents the difference between the plan assets and the projected benefit obligation (“PBO”). The PBO represents the actuarial present value of benefits based on employee service and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation (“ABO”) represents the actuarial present value of benefits based on employee service and compensation but does not include an assumption about future compensation levels.

Actuarial gains arising during 2021 and actuarial losses arising during 2020 were primarily attributable to changes in the discount rate used to determine the PBO.  

The weighted-average allocation of plan assets and the target allocations by asset category as of December 31, 2021 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

 

International

 

 

 

Target

 

 

 

2021

 

 

 

2020

 

 

 

Target

 

 

 

2021

 

 

 

2020

 

 

Equity securities

4 - 8

 

%

 

 

5

 

%

 

 

15

 

%

 

20 - 30

 

%

 

 

23

 

%

 

 

45

 

%

Debt securities

80 - 90

 

 

 

 

84

 

 

 

 

76

 

 

 

50 - 60

 

 

 

 

53

 

 

 

 

35

 

 

Cash and cash equivalents

0 - 3

 

 

 

 

2

 

 

 

 

3

 

 

 

0 - 5

 

 

 

 

3

 

 

 

 

3

 

 

Alternative investments

8 - 15

 

 

 

 

9

 

 

 

 

6

 

 

 

19 - 26

 

 

 

 

21

 

 

 

 

17

 

 

 

 

100

 

%

 

 

100

 

%

 

 

100

 

%

 

 

100

 

%

 

 

100

 

%

 

 

100

 

%

 

Asset performance is monitored frequently with an overall expectation that plan assets will meet or exceed the weighted index of its target asset allocation and component benchmark over rolling five-year periods.

The expected rate of return on assets assumptions reflect the long-term average rate of earnings expected on funds invested or to be invested. The assumptions have been determined based on expectations regarding future rates of return for the portfolio considering the asset allocation and related historical rates of return. The appropriateness of the assumptions is reviewed annually.

The fair value of Schlumberger’s pension plan assets at December 31, 2021 and 2020, 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

 

 

2021

 

 

2020

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

68

 

 

$

61

 

 

$

7

 

 

$

-

 

 

$

140

 

 

$

127

 

 

$

13

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

212

 

 

 

196

 

 

 

16

 

 

 

-

 

 

 

527

 

 

 

441

 

 

 

86

 

 

 

-

 

International

 

49

 

 

 

48

 

 

 

1

 

 

 

-

 

 

 

186

 

 

 

182

 

 

 

4

 

 

 

-

 

Debt Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

2,583

 

 

 

-

 

 

 

2,583

 

 

 

-

 

 

 

1,945

 

 

 

-

 

 

 

1,945

 

 

 

-

 

Government and government-related debt securities

 

1,353

 

 

 

199

 

 

 

1,154

 

 

 

-

 

 

 

1,679

 

 

 

180

 

 

 

1,499

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity

 

293

 

 

 

-

 

 

 

-

 

 

 

293

 

 

 

204

 

 

 

-

 

 

 

-

 

 

 

204

 

Real estate

 

99

 

 

 

-

 

 

 

-

 

 

 

99

 

 

 

95

 

 

 

-

 

 

 

-

 

 

 

95

 

Private debt

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

4,696

 

 

$

504

 

 

$

3,761

 

 

$

431

 

 

$

4,776

 

 

$

930

 

 

$

3,547

 

 

$

299

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Plan Assets

 

 

2021

 

 

2020

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

362

 

 

$

353

 

 

$

9

 

 

$

-

 

 

$

288

 

 

$

215

 

 

$

73

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

1,909

 

 

 

1,600

 

 

 

309

 

 

 

-

 

 

 

3,075

 

 

 

2,393

 

 

 

682

 

 

 

-

 

International

 

717

 

 

 

717

 

 

 

-

 

 

 

-

 

 

 

1,711

 

 

 

1,615

 

 

 

96

 

 

 

-

 

Debt Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

2,859

 

 

 

-

 

 

 

2,859

 

 

 

-

 

 

 

1,223

 

 

 

-

 

 

 

1,223

 

 

 

-

 

Government and government-related debt securities

 

2,390

 

 

 

221

 

 

 

2,169

 

 

 

-

 

 

 

2,371

 

 

 

213

 

 

 

2,158

 

 

 

-

 

Collateralized mortgage obligations and mortgage backed securities

 

644

 

 

 

-

 

 

 

644

 

 

 

-

 

 

 

84

 

 

 

-

 

 

 

84

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity

 

1,284

 

 

 

-

 

 

 

-

 

 

 

1,284

 

 

 

842

 

 

 

-

 

 

 

-

 

 

 

842

 

Private debt

 

869

 

 

 

-

 

 

 

-

 

 

 

869

 

 

 

699

 

 

 

-

 

 

 

-

 

 

 

699

 

Real estate

 

187

 

 

 

-

 

 

 

-

 

 

 

187

 

 

 

200

 

 

 

-

 

 

 

-

 

 

 

200

 

Total

$

11,221

 

 

$

2,891

 

 

$

5,990

 

 

$

2,340

 

 

$

10,493

 

 

$

4,436

 

 

$

4,316

 

 

$

1,741

 

 

 

Schlumberger’s funding policy is to annually contribute amounts that are based upon a number of factors including the actuarial accrued liability, amounts that are deductible for income tax purposes, legal funding requirements and available cash flow. Schlumberger does not expect to make any material contributions to its postretirement benefit plans in 2022.

Postretirement Benefits Other Than Pensions

Schlumberger provides healthcare benefits to certain former US employees who have retired.     

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

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2019

 

Discount rate

 

3.00

%

 

 

2.60

%

 

 

2.60

%

 

 

3.30

%

 

 

4.30

%

Return on plan assets

-

 

 

-

 

 

 

7.00

%

 

 

7.00

%

 

 

7.00

%

Current medical cost trend rate

 

6.75

%

 

 

7.25

%

 

 

7.00

%

 

 

7.25

%

 

 

7.50

%

Ultimate medical cost trend rate

 

4.50

%

 

 

4.50

%

 

 

4.50

%

 

 

4.50

%

 

 

4.50

%

Year that the rate reaches the ultimate trend rate

2031

 

 

2031

 

 

2031

 

 

2031

 

 

2031

 

 

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

Service cost

$

28

 

 

$

31

 

 

$

29

 

Interest cost

 

32

 

 

 

36

 

 

 

45

 

Expected return on plan assets

 

(73

)

 

 

(70

)

 

 

(64

)

Amortization of prior service credit

 

(23

)

 

 

(25

)

 

 

(28

)

Curtailment gain

 

-

 

 

 

(69

)

 

 

-

 

 

$

(36

)

 

$

(97

)

 

$

(18

)

 

 

Due to the actions taken by Schlumberger to reduce its global workforce during 2020, Schlumberger experienced a significant reduction in the expected aggregate years of future service of its employees in its US postretirement medical plan. Accordingly, Schlumberger recorded a curtailment gain of $69 million during the second quarter of 2020 relating to this plan. The curtailment gain includes recognition of the decrease in the benefit obligation as well as a portion of the previously unrecognized prior service credit, reflecting the reduction in expected years of future service.  As a result of the curtailment, Schlumberger performed a remeasurement of the plan, which had an immaterial impact.  This gain was classified in Impairments & other in the Consolidated Statement of Income (Loss).  See Note 3 – Charges and Credits.

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

Benefit obligation at beginning of year

$

1,234

 

 

$

1,193

 

Service cost

 

28

 

 

 

31

 

Interest cost

 

32

 

 

 

36

 

Contribution by plan participants

 

10

 

 

 

8

 

Actuarial (gains) losses

 

(95

)

 

 

64

 

Benefits paid

 

(63

)

 

 

(58

)

Curtailment

 

-

 

 

 

(40

)

Benefit obligation at end of year

$

1,146

 

 

$

1,234

 

Change in Plan Assets

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

1,356

 

 

$

1,185

 

Actual return on plan assets

 

15

 

 

 

221

 

Contributions by plan participants

 

10

 

 

 

8

 

Benefits paid

 

(63

)

 

 

(58

)

Plan assets at fair value at end of year

$

1,318

 

 

$

1,356

 

Asset

$

172

 

 

$

122

 

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

Actuarial gains

$

225

 

 

$

186

 

Prior service credit

 

81

 

 

 

104

 

 

$

306

 

 

$

290

 

 

The asset balance relating to this plan was included in Other Assets in the Consolidated Balance Sheet.

The assets of the US postretirement medical plan are invested 13% in equity securities and 87% in debt securities at December 31, 2021. The fair value of these assets was primarily determined based on Level Two valuation techniques.

Other Information

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

 

2022

$

237

 

 

$

370

 

 

$

53

 

2023

$

238

 

 

$

380

 

 

$

53

 

2024

$

239

 

 

$

391

 

 

$

53

 

2025

$

239

 

 

$

403

 

 

$

54

 

2026

$

240

 

 

$

407

 

 

$

54

 

2027-2031

$

1,213

 

 

$

2,260

 

 

$

294