XML 72 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Pension and Other Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Weighted-Average Assumed Discount Rate, Compensation Increases and Expected Long-Term Rate of Return on Plan Assets Used to Determine Net Pension Cost for US and International Plans

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

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Discount rate

 

3.70

%

 

 

4.20

%

 

 

4.50

%

 

 

3.55

%

 

 

4.13

%

 

 

4.36

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.00

%

 

 

4.81

%

 

 

4.81

%

 

 

4.81

%

Return on plan assets

 

7.25

%

 

 

7.25

%

 

 

7.25

%

 

 

7.40

%

 

 

7.40

%

 

 

7.40

%

 
Net Pension Cost (Credit) for Schlumberger Pension Plans and US Postretirement Medical Plan

Net pension cost for 2018, 2017 and 2016 included the following components:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

International

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Service cost - benefits earned during the period

$

59

 

 

$

57

 

 

$

62

 

 

$

138

 

 

$

95

 

 

$

110

 

Interest cost on projected benefit obligation

 

167

 

 

 

175

 

 

 

177

 

 

 

304

 

 

 

306

 

 

 

311

 

Expected return on plan assets

 

(248

)

 

 

(242

)

 

 

(235

)

 

 

(584

)

 

 

(541

)

 

 

(517

)

Amortization of prior service cost

 

13

 

 

 

12

 

 

 

12

 

 

 

10

 

 

 

97

 

 

 

122

 

Amortization of net loss

 

47

 

 

 

39

 

 

 

79

 

 

 

140

 

 

 

120

 

 

 

78

 

 

$

38

 

 

$

41

 

 

$

95

 

 

$

8

 

 

$

77

 

 

$

104

 

 

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2017

 

 

2016

 

Service cost

$

32

 

 

$

29

 

 

$

30

 

Interest cost

 

43

 

 

 

46

 

 

 

47

 

Expected return on plan assets

 

(63

)

 

 

(60

)

 

 

(57

)

Amortization of prior service credit

 

(28

)

 

 

(29

)

 

 

(32

)

 

$

(16

)

 

$

(14

)

 

$

(12

)

 
Weighted-Average Assumed Discount Rate and Compensation Increases Used to Determine Projected Benefit Obligations for US and International Plans

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

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Discount rate

 

4.30

%

 

 

3.70

%

 

 

4.00

%

 

 

3.55

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.83

%

 

 

4.81

%
Changes In Projected Benefit Obligation Plan Assets And Funded Status Of Plans

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

International

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

$

4,603

 

 

$

4,240

 

 

$

8,752

 

 

$

7,793

 

Service cost

 

59

 

 

 

57

 

 

 

138

 

 

 

95

 

Interest cost

 

167

 

 

 

175

 

 

 

304

 

 

 

306

 

Contribution by plan participants

 

-

 

 

 

-

 

 

 

79

 

 

 

88

 

Actuarial (gains) losses

 

(349

)

 

 

325

 

 

 

(758

)

 

 

616

 

Currency effect

 

-

 

 

 

-

 

 

 

(87

)

 

 

147

 

Benefits paid

 

(202

)

 

 

(194

)

 

 

(317

)

 

 

(293

)

Projected benefit obligation at end of year

$

4,278

 

 

$

4,603

 

 

$

8,111

 

 

$

8,752

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

4,058

 

 

$

3,625

 

 

$

8,507

 

 

$

7,194

 

Actual return on plan assets

 

(112

)

 

 

622

 

 

 

(370

)

 

 

1,216

 

Currency effect

 

-

 

 

 

-

 

 

 

(105

)

 

 

161

 

Company contributions

 

4

 

 

 

5

 

 

 

78

 

 

 

88

 

Contributions by plan participants

 

-

 

 

 

-

 

 

 

79

 

 

 

88

 

Benefits paid

 

(202

)

 

 

(194

)

 

 

(317

)

 

 

(293

)

Other

 

-

 

 

 

-

 

 

 

-

 

 

 

53

 

Plan assets at fair value at end of year

$

3,748

 

 

$

4,058

 

 

$

7,872

 

 

$

8,507

 

Unfunded Liability

$

(530

)

 

$

(545

)

 

$

(239

)

 

$

(245

)

Amounts Recognized in Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

$

(530

)

 

$

(545

)

 

$

(514

)

 

$

(418

)

Other Assets

 

-

 

 

 

-

 

 

 

275

 

 

 

173

 

 

$

(530

)

 

$

(545

)

 

$

(239

)

 

$

(245

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

$

852

 

 

$

887

 

 

$

1,440

 

 

$

1,419

 

Prior service cost

 

18

 

 

 

30

 

 

 

9

 

 

 

17

 

 

$

870

 

 

$

917

 

 

$

1,449

 

 

$

1,436

 

Accumulated benefit obligation

$

4,070

 

 

$

4,347

 

 

$

7,895

 

 

$

8,400

 

 
Weighted-Average Allocation of Plan Assets and Target Allocation by Asset Category

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

 

 

US

 

 

International

 

Target

 

 

2018

 

 

2017

 

 

Target

 

 

2018

 

 

2017

Equity securities

20 - 30

%

 

21

%

 

51

%

 

47 - 59

%

 

50

%

 

64

Debt securities

63 - 77

 

 

70

 

 

38

 

 

27 - 33

 

 

32

 

 

23

Cash and cash equivalents

0 - 3

 

 

2

 

 

3

 

 

0 - 3

 

 

2

 

 

4

Alternative investments

5 - 10

 

 

7

 

 

8

 

 

15 - 22

 

 

16

 

 

9

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

100
Fair Value of Schlumberger's Pension Plan Assets

The fair value of Schlumberger’s pension plan assets at December 31, 2018 and 2017, 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

 

 

2018

 

 

2017

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

80

 

 

$

44

 

 

$

36

 

 

$

-

 

 

$

112

 

 

$

92

 

 

$

20

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US (a)

 

501

 

 

 

416

 

 

 

85

 

 

 

-

 

 

 

1,324

 

 

 

1,148

 

 

 

176

 

 

 

-

 

International (b)

 

267

 

 

 

263

 

 

 

4

 

 

 

-

 

 

 

757

 

 

 

747

 

 

 

10

 

 

 

-

 

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds (c)

 

1,517

 

 

 

-

 

 

 

1,517

 

 

 

-

 

 

 

771

 

 

 

-

 

 

 

771

 

 

 

-

 

Government and government-related debt securities (d)

 

1,072

 

 

 

66

 

 

 

1,006

 

 

 

-

 

 

 

656

 

 

 

163

 

 

 

493

 

 

 

-

 

Collateralized mortgage obligations and mortgage backed securities (e)

 

40

 

 

 

-

 

 

 

40

 

 

 

-

 

 

 

108

 

 

 

-

 

 

 

108

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity (f)

 

185

 

 

 

-

 

 

 

-

 

 

 

185

 

 

 

183

 

 

 

-

 

 

 

-

 

 

 

183

 

Real estate (g)

 

86

 

 

 

-

 

 

 

-

 

 

 

86

 

 

 

147

 

 

 

-

 

 

 

-

 

 

 

147

 

Total

$

3,748

 

 

$

789

 

 

$

2,688

 

 

$

271

 

 

$

4,058

 

 

$

2,150

 

 

$

1,578

 

 

$

330

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Plan Assets

 

 

2018

 

 

2017

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

157

 

 

$

75

 

 

$

82

 

 

$

-

 

 

$

307

 

 

$

69

 

 

$

238

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US (a)

 

2,421

 

 

 

2,028

 

 

 

393

 

 

 

-

 

 

 

3,286

 

 

 

2,642

 

 

 

644

 

 

 

-

 

International (b)

 

1,526

 

 

 

1,406

 

 

 

120

 

 

 

-

 

 

 

2,160

 

 

 

1,871

 

 

 

289

 

 

 

-

 

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds (c)

 

923

 

 

 

-

 

 

 

923

 

 

 

-

 

 

 

841

 

 

 

-

 

 

 

841

 

 

 

-

 

Government and government-related debt securities (d)

 

1,377

 

 

 

5

 

 

 

1,372

 

 

 

-

 

 

 

985

 

 

 

11

 

 

 

974

 

 

 

-

 

Collateralized mortgage obligations and mortgage backed securities (e)

 

236

 

 

 

-

 

 

 

236

 

 

 

-

 

 

 

150

 

 

 

-

 

 

 

150

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity (f)

 

565

 

 

 

-

 

 

 

-

 

 

 

565

 

 

 

477

 

 

 

-

 

 

 

-

 

 

 

477

 

Real estate (g)

 

150

 

 

 

-

 

 

 

-

 

 

 

150

 

 

 

168

 

 

 

-

 

 

 

-

 

 

 

168

 

Other

 

517

 

 

 

-

 

 

 

-

 

 

 

517

 

 

 

133

 

 

 

-

 

 

 

-

 

 

 

133

 

Total

$

7,872

 

 

$

3,514

 

 

$

3,126

 

 

$

1,232

 

 

$

8,507

 

 

$

4,593

 

 

$

3,136

 

 

$

778

 

(a) 

US equities include companies that are well-diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.

(b) 

International equities are invested in companies that are traded on exchanges outside the US and are well-diversified by industry sector, country and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets, with a small percentage in emerging markets.

(c) 

Corporate bonds consist primarily of investment grade bonds from diversified industries.

(d) 

Government and government-related debt securities are comprised primarily of inflation-protected US treasuries and, to a lesser extent, other government-related securities.

(e) 

Collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash flows from pools of mortgage loans, which are purchased from banks, mortgage companies, and other originators and then assembled into pools by governmental, quasi-governmental and private entities.

(f) 

Private equity includes investments in several funds of funds.

(g) 

Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.

Defined Benefit Plan Weighted Average Assumptions Used in Calculating Benefit Obligation and Net Periodic Benefit Cost for US Postretirement Medical Plan

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

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2016

 

Discount rate

 

4.30

%

 

 

3.70

%

 

 

3.70

%

 

 

4.20

%

 

 

4.50

%

Return on plan assets

-

 

 

-

 

 

 

7.00

%

 

 

7.00

%

 

 

7.00

%

Current medical cost trend rate

 

7.00

%

 

 

7.25

%

 

 

7.00

%

 

 

7.25

%

 

 

7.50

%

Ultimate medical cost trend rate

 

5.00

%

 

 

5.00

%

 

 

5.00

%

 

 

5.00

%

 

 

5.00

%

Year that the rate reaches the ultimate trend rate

2026

 

 

2026

 

 

2026

 

 

2026

 

 

2026

 

 
Changes in Accumulated Postretirement Benefit Obligation, Plan Assets and Funded Status

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

2018

 

 

2017

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

Benefit obligation at beginning of year

$

1,213

 

 

$

1,108

 

Service cost

 

32

 

 

 

29

 

Interest cost

 

43

 

 

 

46

 

Contribution by plan participants

 

8

 

 

 

8

 

Actuarial gains (losses)

 

(128

)

 

 

71

 

Benefits paid

 

(62

)

 

 

(49

)

Benefit obligation at end of year

$

1,106

 

 

$

1,213

 

Change in Plan Assets

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

1,094

 

 

$

952

 

Actual return on plan assets

 

(44

)

 

 

143

 

Company contributions

 

1

 

 

 

40

 

Contributions by plan participants

 

8

 

 

 

8

 

Benefits paid

 

(62

)

 

 

(49

)

Plan assets at fair value at end of year

$

997

 

 

$

1,094

 

Unfunded Liability

$

(109

)

 

$

(119

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

Actuarial losses

$

14

 

 

$

36

 

Prior service credit

 

(186

)

 

 

(215

)

 

$

(172

)

 

$

(179

)

 
Expected Benefits to be Paid Under US and International Pension Plans and Postretirement Medical Plan

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

 

2019

$

211

 

 

$

304

 

 

$

52

 

2020

$

216

 

 

$

316

 

 

$

53

 

2021

$

221

 

 

$

327

 

 

$

55

 

2022

$

227

 

 

$

339

 

 

$

60

 

2023

$

233

 

 

$

351

 

 

$

61

 

2024-2028

$

1,240

 

 

$

1,980

 

 

$

341