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, OneSurface, Software Integrated Solutions and Integrated Services Management.

●

Drilling Group – Consists of the principal Technologies involved in the drilling and positioning of oil and gas wells. These include Bits & Drilling Tools, M-I SWACO, Drilling & Measurements, Land Rigs and Integrated Drilling Services.

●

Production Group – Consists of the principal Technologies involved in the lifetime production of oil and gas reservoirs. These include Well Services, OneStim, Completions, Artificial Lift, Integrated Production Services and Schlumberger Production Management.

●Cameron Group – Consists of the principal Technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities. These include OneSubsea, Surface Systems, Drilling Systems and Valves & Measurements.

Financial information for the years ended December 31, 2017, 2016 and 2015, by segment, is as follows:

				(Stated in millions)

	2017
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	6,786		$	1,251		$	4,892	$	988	$	305
Drilling		8,392			1,151			5,421		685		629
Production		10,639			928			12,326		1,249		889
Cameron		5,205			733			3,978		264		150
Eliminations & other		(582	)		(142	)		1,881		213		134
Pretax operating income					3,921
Goodwill and intangible assets								34,472
Cash and short term investments								5,089
All other assets								3,928
Corporate & other ⁽¹⁾					(934	)				438
Interest income ⁽²⁾					107
Interest expense ⁽³⁾					(513	)
Charges & credits ⁽⁴⁾					(3,764	)
	$	30,440		$	(1,183	)	$	71,987	$	3,837	$	2,107

				(Stated in millions)

	2016
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	6,648		$	1,249		$	6,890	$	1,104	$	532
Drilling		8,561			994			6,747		904		425
Production		8,804			507			10,476		1,234		655
Cameron		4,211			653			4,246		211		176
Eliminations & other		(414	)		(130	)		1,605		257		267
Pretax operating income					3,273
Goodwill and intangible assets								34,845
Cash, short term investments and fixed income investments								9,495
All other assets								3,652
Corporate & other ⁽¹⁾					(925	)				384
Interest income ⁽²⁾					84
Interest expense ⁽³⁾					(517	)
Charges & credits ⁽⁴⁾					(3,820	)
	$	27,810		$	(1,905	)	$	77,956	$	4,094	$	2,055

				(Stated in millions)

	2015
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Expenditures
Reservoir Characterization	$	9,501		$	2,450		$	8,266	$	1,279	$	648
Drilling		13,563			2,538			8,562		1,177		673
Production		12,548			1,585			9,938		1,216		824
Eliminations & other		(137	)		(63	)		2,039		213		265
Pretax operating income					6,510
Goodwill and intangible assets								20,174
Cash, short term investments and fixed income investments								13,452
All other assets								5,574
Corporate & other ⁽¹⁾					(768	)				193
Interest income ⁽²⁾					30
Interest expense ⁽³⁾					(316	)
Charges & credits ⁽⁴⁾					(2,575	)
	$	35,475		$	2,881		$	68,005	$	4,078	$	2,410

⁽¹⁾

Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets (including intangible asset amortization expense resulting from the 2016 acquisition of Cameron), certain centrally managed initiatives and other nonoperating items.

⁽²⁾	Interest income excludes amounts which are included in the segments’ income (2017: $21 million; 2016: $26 million; 2015: $22 million).

⁽³⁾	Interest expense excludes amounts which are included in the segments’ income (2017: $53 million; 2016: $53 million; 2015: $30 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, 2017, 2016 and 2015 is as follows:

(Stated in millions)

	2017		2016		2015
North America	$	9,487	$	6,665	$	9,811
Latin America		3,976		4,230		6,014
Europe/CIS/Africa		7,047		7,351		9,284
Middle East & Asia		9,419		9,286		9,898
Eliminations & other		511		278		468
	$	30,440	$	27,810	$	35,475

Revenue is based on the location where services are provided and products are sold.

During each of the three years ended December 31, 2017, 2016 and 2015, 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 2017, 2016 and 2015 was $8.1 billion, $5.4 billion and $8.5 billion, respectively.

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

(Stated in millions)

	2017		2016		2015
North America	$	5,120	$	4,428	$	4,392
Latin America		1,042		1,460		1,728
Europe/CIS/Africa		2,540		2,706		2,978
Middle East & Asia		2,771		3,149		3,078
Unallocated ⁽¹⁾		103		1,078		1,239
	$	11,576	$	12,821	$	13,415

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