XML 58 R46.htm IDEA: XBRL DOCUMENT v3.5.0.2
Acquisition of Cameron - Schedule of Preliminary Estimates of Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Apr. 02, 2016
Dec. 31, 2015
Business Acquisition [Line Items]      
Cash   $ 785  
Short-term investments   1,448  
Accounts receivable   1,691  
Inventories [1]   2,422  
Fixed assets   1,342  
Intangible assets:      
Other assets   633  
Accounts payable and accrued liabilities   (2,594)  
Long-term debt [2]   (3,018)  
Deferred taxes [3]   (1,691)  
Other liabilities   (621)  
Sub-total   5,729  
Noncontrolling interests   (57)  
Total identifiable net assets   3,607  
Goodwill $ 24,957 9,196 [4] $ 15,605
Total consideration transferred   12,803  
Customer Relationships      
Intangible assets:      
Intangible assets   2,371  
Technology/Technical know-how      
Intangible assets:      
Intangible assets   1,736  
Tradenames      
Intangible assets:      
Intangible assets   1,225  
OneSubsea      
Intangible assets:      
Investment in OneSubsea [5]   $ (2,065)  
[1] Schlumberger recorded an adjustment of $299 million to write-up the acquired inventory to its estimated fair value. Schlumberger’s cost of sales reflected this increased valuation as this inventory was sold.
[2] In connection with the merger, Schlumberger assumed all of the debt obligations of Cameron, including their $2.75 billion of fixed rate notes. Schlumberger recorded a $244 million adjustment to increase the carrying amount of these notes to their estimated fair value. This adjustment is being amortized as a reduction of interest expense over the remaining term of the respective obligations.
[3] In connection with the acquisition accounting, Schlumberger provided deferred taxes related to, among other items, the estimated fair value adjustments for acquired inventory, intangible assets and assumed debt obligations.
[4] The goodwill recognized is primarily attributable to expected synergies that will result from combining the operations of Schlumberger and Cameron, as well as intangible assets which do not qualify for separate recognition. The amount of goodwill that is deductible for income tax purposes is not significant.
[5] Prior to the completion of the merger, Cameron and Schlumberger operated OneSubsea, a joint venture that manufactured and developed products, systems and services for the subsea oil and gas market, which was 40% owned by Schlumberger and 60% owned by Cameron. OneSubsea is now owned 100% by Schlumberger. As a result of obtaining control of this joint venture, Schlumberger was required to remeasure its previously held equity interest in the joint venture to its acquisition-date fair value. Schlumberger determined that the estimated fair value of its previously held equity interest approximated its carrying value. Accordingly, Schlumberger did not recognize any gain or loss on this transaction.