Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

16. Segment Information

During 2020, Schlumberger restructured its organization in order to prepare for a changing industry future.  This new structure is aligned with customer workflows and is directly linked to Schlumberger’s corporate strategy, a key element of which is customer collaboration. 

The new organization consists of four Divisions that combine and integrate Schlumberger’s technologies, enhancing the portfolio of capabilities that support the emerging long-term growth opportunities in each of these market segments.

The four Divisions, representing Schlumberger’s segments, are:

• Digital & Integration – Combines Schlumberger’s software and seismic businesses with its integrated offering of Asset Performance Solutions. 

• Reservoir Performance – Consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance.

• Well Construction – Combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance.

• Production Systems – Develops technologies and provides expertise that enhance production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries.

Financial information for the years ended December 31, 2020, 2019 and 2018, by segment, is as follows:

				(Stated in millions)
	2020
									Depreciation
				Income (Loss)					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Investments
Digital & Integration	$	3,076		$	731		$	3,595	$	615	$	413
Reservoir Performance		5,602			353			3,489		549		384
Well Construction		8,605			866			4,768		580		420
Production Systems		6,650			623			4,665		338		240
Eliminations & other		(332	)		(172	)		940		276		63
					2,401
Goodwill and intangible assets								16,436
Cash and short-term investments								3,006
All other assets								5,535
Corporate & other (1)					(681	)				208
Interest income (2)					31
Interest expense (3)					(534	)
Charges & credits (4)					(12,515	)
	$	23,601		$	(11,298	)	$	42,434	$	2,566	$	1,520

				(Stated in millions)
	2019
									Depreciation
				Income (Loss)					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Investments
Digital & Integration	$	4,145		$	882		$	6,388	$	1,069	$	1,020
Reservoir Performance		9,299			992			5,198		807		569
Well Construction		11,880			1,429			6,913		656		650
Production Systems		8,167			847			5,625		390		384
Eliminations & other		(574	)		(172	)		1,314		250		113
					3,978
Goodwill and intangible assets								23,130
Cash and short-term investments								2,167
All other assets								5,577
Corporate & other (1)					(957	)				417
Interest income (2)					33
Interest expense (3)					(571	)
Charges & credits (4)					(12,901	)
	$	32,917		$	(10,418	)	$	56,312	$	3,589	$	2,736

				(Stated in millions)
	2018
									Depreciation
				Income					and		Capital
	Revenue			Before Taxes			Assets		Amortization		Investments
Digital & Integration	$	3,820		$	882		$	6,784	$	894	$	1,091
Reservoir Performance		10,050			1,169			7,396		850		899
Well Construction		11,310			1,465			7,112		713		769
Production Systems		8,168			843			5,632		423		343
Eliminations & other		(533	)		(172	)		1,448		237		139
					4,187
Goodwill and intangible assets								33,658
Cash and short-term investments								2,777
All other assets								5,700
Corporate & other (1)					(937	)				439
Interest income (2)					52
Interest expense (3)					(537	)
Charges & credits (4)					(141	)
	$	32,815		$	2,624		$	70,507	$	3,556	$	3,241

⁽¹⁾ Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

⁽²⁾ Interest income excludes amounts which are included in the segments’ income (2020: $2 million; 2019: $8 million; 2018: $8 million).

⁽³⁾ Interest expense excludes amounts which are included in the segments’ income (2020: $28 million; 2019: $38 million; 2018: $38 million).

⁽⁴⁾ See Note 3 – Charges and Credits.

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

Capital investments includes capital expenditures, APS investments and multiclient seismic data cost capitalized.

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

Revenue by geographic area for the years ended December 31, 2020, 2019 and 2018 is as follows:

(Stated in millions)
	2020		2019		2018
North America	$	5,478	$	10,446	$	11,730
Latin America		3,472		4,544		4,013
Europe/CIS/Africa		5,963		7,682		7,113
Middle East & Asia		8,567		10,016		9,582
Eliminations & other		121		229		377
	$	23,601	$	32,917	$	32,815

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

During each of the three years ended December 31, 2020, 2019 and 2018, 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 2020, 2019 and 2018 was $4.5 billion, $9.3 billion and $10.1 billion, respectively.

North America and International revenue disaggregated by segment was as follows:

(Stated in millions)
	2020
	North America			International			Eliminations & other			Total
Digital & Integration	$	573		$	2,496		$	7		$	3,076
Reservoir Performance		1,547			4,043			12			5,602
Well Construction		1,453			6,956			196			8,605
Production Systems		1,921			4,702			27			6,650
Eliminations & other		(16	)		(195	)		(121	)		(332	)
	$	5,478		$	18,002		$	121		$	23,601

(Stated in millions)
	2019
	North America			International			Eliminations & other			Total
Digital & Integration	$	865		$	3,272		$	8		$	4,145
Reservoir Performance		3,779			5,509			11			9,299
Well Construction		2,814			8,809			257			11,880
Production Systems		3,053			5,059			55			8,167
Eliminations & other		(65	)		(407	)		(102	)		(574	)
	$	10,446		$	22,242		$	229		$	32,917

(Stated in millions)
	2018
	North America			International			Eliminations & other			Total
Digital & Integration	$	786		$	2,894		$	140		$	3,820
Reservoir Performance		4,975			5,066			9			10,050
Well Construction		2,911			8,083			316			11,310
Production Systems		3,139			4,966			63			8,168
Eliminations & other		(81	)		(301	)		(151	)		(533	)
	$	11,730		$	20,708		$	377		$	32,815

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

(Stated in millions)
	2020		2019
North America	$	1,588	$	3,326
Latin America		841		912
Europe/CIS/Africa		1,840		2,309
Middle East & Asia		2,353		2,502
Unallocated		204		221
	$	6,826	$	9,270