Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

17.    Segment Information

Schlumberger’s segments are as follows:

— Reservoir Characterization Group – Consists of the principal technologies involved in finding and defining hydrocarbon deposits. These include WesternGeco, Wireline, Testing Services, Schlumberger Information Services and PetroTechnical Services.

— Drilling Group – Consists of the principal technologies involved in the drilling and positioning of oil and gas wells and is comprised of Bits & Advanced Technologies, M-I SWACO, Geoservices, Drilling & Measurements, Pathfinder, Drilling Tools & Remedial Services, Dynamic Pressure Management and Integrated Project Management well construction projects.

— Production Group – Consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Well Intervention, Subsea, Water Services, Carbon Services and the Schlumberger Production Management field production projects.

The Groups are collectively referred to as “Oilfield Services”.

Financial information for the years ended December 31, 2012, 2011 and 2010, by segment, is as follows:

									(Stated in millions)
	2012
	Revenue			Income before taxes			Assets		Depn. & Amortn.		Capital Expenditures
OILFIELD SERVICES
Reservoir Characterization	$	11,424		$	3,212		$	8,699	$	1,311	$	1,236
Drilling (1)		15,971			2,824			11,027		1,086		1,668
Production (1)		14,875			2,371			9,643		724		1,439
Eliminations & other (2)		(121	)		(60	)		2,065		181		352
		42,149			8,347			31,434		3,302		4,695
Goodwill and intangible assets (3)								19,387
All other assets								2,705
Corporate (4)					(694	)		8,021		198
Interest income (5)					30
Interest expense (6)					(331	)
Charges & credits (7)					(161	)
	$	42,149		$	7,191		$	61,547	$	3,500	$	4,695

								(Stated in millions)
	2011
	Revenue		Income before taxes			Assets		Depn. & Amortn.		Capital Expenditures
OILFIELD SERVICES
Reservoir Characterization	$	9,929	$	2,449		$	7,621	$	1,285	$	1,057
Drilling (1)		13,860		2,254			9,093		982		1,420
Production (1)		13,136		2,637			8,007		643		1,383
Eliminations & other (2)		34		(35	)		1,958		162		148
		36,959		7,305			26,679		3,072		4,008
Goodwill and intangible assets (3)							18,932
Discontinued operations assets							1,055
All other assets							2,202
Corporates (4)				(590	)		6,333		202
Interest income (5)				37
Interest expense (6)				(290	)
Charges & credits (7)				(223	)
	$	36,959	$	6,239		$	55,201	$	3,274	$	4,008
								(Stated in millions)
	2010
	Revenue		Income before taxes			Assets		Depn. & Amortn.		Capital Expenditures
OILFIELD SERVICES
Reservoir Characterization	$	9,321	$	2,321		$	7,338	$	1,246	$	885
Drilling (1)		7,917		1,313			8,355		721		942
Production (1)		9,366		1,389			6,254		571		850
Eliminations & other (2)		68		48			1,801		142		234
		26,672		5,071			23,748		2,680		2,911
Goodwill and intangible assets (3)							19,014
Discontinued operations assets							862
All other assets							1,599
Corporate (4)				(405	)		6,544		77		1
Interest income (5)				43
Interest expense (6)				(202	)
Charges & credits (7)				625
	$	26,672	$	5,132		$	51,767	$	2,757	$	2,912

(1) Effective January 1, 2012, a component of the Drilling Group was reallocated to the Production Group. Historical information has been reclassified to conform to this presentation.

(2) Includes certain headquarter administrative costs which are not allocated to the segments, and certain other operations and other cost and income items maintained at the Oilfield Services level.

(3) Excludes goodwill and intangible assets relating to discontinued operations.

(4) Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with intangible assets recorded as a result of the acquisition of Smith and certain other nonoperating items. Corporate assets consist of cash, short-term investments, fixed income investments, held to maturity and investments in affiliates.

(5) Interest income excludes amounts which are included in the segments’ income (2012 – $- million: 2011 – $3 million; 2010 – $7 million).

(6) Interest expense excludes amounts which are included in the segments’ income (2012 – $8 million; 2011 – $8 million; 2010 – $5 million).

(7) See Note 3 – Charges and Credits.

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

Depreciation & Amortization includes multiclient seismic data costs.

Revenue for the years ended December 31, 2012, 2011 and 2010, by geographic area is as follows:

			(Stated in millions)
	2012		2011		2010
North America	$	13,485	$	12,323	$	6,730
Latin America		7,554		6,467		4,985
Europe/CIS/Africa		11,443		9,676		7,850
Middle East & Asia		9,194		8,102		6,652
Eliminations & other		473		391		455
	$	42,149	$	36,959	$	26,672

Revenue is based on the location where services are provided.

During each of the three years ended December 31, 2012, 2011 and 2010, 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 2012, 2011 and 2010 was $11.8 billion, $10.7 billion and $5.8 billion, respectively.

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

(Stated in millions)
	2012		2011		2010
North America	$	4,868	$	4,230	$	3,624
Latin America		1,788		1,472		1,274
Europe/CIS/Africa		3,414		3,341		3,339
Middle East & Asia		2,908		2,233		2,004
Unallocated (1)		1,802		1,717		1,830
	$	14,780	$	12,993	$	12,071

⁽¹⁾  Represents seismic vessels, including the related on-board equipment, which frequently transition between geographic areas.