Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

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 resources. 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.  These include Bits & Advanced Technologies, M-I SWACO, Geoservices, Drilling & Measurements, Drilling Tools & Remedial Services, Saxon Rig Services and Integrated Project Management well construction projects.

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

Financial information for the years ended December 31, 2014, 2013 and 2012, by segment, is as follows:

	(Stated in millions)
	2014
	Revenue			Income before taxes			Assets		Depreciation  and Amortization		Capital Expenditures
Reservoir Characterization	$	12,224		$	3,607		$	8,596	$	1,391	$	1,152
Drilling		18,462			3,872			11,378		1,174		1,328
Production		18,111			3,227			11,848		1,133		1,246
Eliminations & other		(217	)		(130	)		1,577		198		250
Pretax operating income					10,576
Goodwill and intangible assets								20,142
All other assets								2,185
Corporate (1)					(848	)		11,178		198
Interest income (2)					31
Interest expense (3)					(347	)
Charges & credits (4)					(1,773	)
	$	48,580		$	7,639		$	66,904	$	4,094	$	3,976

	(Stated in millions)
	2013
	Revenue			Income before taxes			Assets		Depreciation  and Amortization		Capital Expenditures
Reservoir Characterization	$	12,463		$	3,660		$	8,918	$	1,338	$	1,275
Drilling		17,099			3,293			10,940		1,077		1,291
Production		15,927			2,619			11,185		1,039		1,204
Eliminations & other		(223	)		(228	)		1,974		217		173
Pretax operating income					9,344
Goodwill and intangible assets								19,415
All other assets								2,618
Corporate (1)					(726	)		12,050		208
Interest income (2)					22
Interest expense (3)					(369	)
Charges & credits (4)					420
	$	45,266		$	8,691		$	67,100	$	3,879	$	3,943

	(Stated in millions)
	2012
	Revenue			Income before taxes			Assets		Depreciation and Amortization		Capital Expenditures
Reservoir Characterization	$	11,360		$	3,080		$	8,501	$	1,309	$	1,235
Drilling		15,691			2,778			11,316		1,072		1,668
Production		14,802			2,327			9,889		877		1,439
Eliminations & other		(122	)		(68	)		1,920		191		352
Pretax operating income					8,117
Goodwill and intangible assets								19,387
Discontinued operations assets								246
All other assets								2,267
Corporate (1)					(696	)		8,021		198
Interest income (2)					30
Interest expense (3)					(331	)
Charges & credits (4)					(161	)
	$	41,731		$	6,959		$	61,547	$	3,647	$	4,694

⁽¹⁾ Comprised principally of certain corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with certain intangible and other nonoperating items. Corporate assets consist of cash, short-term investments, fixed income investments, held to maturity and investments in affiliates.

⁽²⁾ Interest income excludes amounts which are included in the segments’ income (2014: $20 million; 2013: $11 million; 2012: $- million).

⁽³⁾ Interest expense excludes amounts which are included in the segments’ income (2014: $22 million; 2013: $22 million; 2012: $9 million).

⁽⁴⁾ See Note 3 – Charges and Credits.

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

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

Revenue by geographic area for the years ended December 31, 2014, 2013 and 2012 is as follows:

	(Stated in millions)
	2014		2013		2012
North America	$	16,151	$	13,897	$	13,535
Latin America		7,699		7,754		7,554
Europe/CIS/Africa		12,515		12,411		11,510
Middle East & Asia		11,875		10,767		8,717
Eliminations & other		340		437		415
	$	48,580	$	45,266	$	41,731

Revenue is based on the location where services are provided.

During each of the three years ended December 31, 2014, 2013 and 2012, 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 2014, 2013 and 2012 was $14.0 billion, $12.0 billion and $11.8 billion, respectively.

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

	(Stated in millions)
	2014		2013		2012
North America	$	4,885	$	4,858	$	4,868
Latin America		1,969		1,889		1,788
Europe/CIS/Africa		3,640		3,452		3,414
Middle East & Asia		3,446		2,991		2,908
Unallocated (1)		1,456		1,906		1,802
	$	15,396	$	15,096	$	14,780

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