XML 67 R42.htm IDEA: XBRL DOCUMENT v3.20.4
Pension and Other Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
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

 

 

2020

 

 

2019

 

 

2018

 

 

2020

 

 

2019

 

 

2018

 

Discount rate

 

3.30

%

 

 

4.30

%

 

 

3.70

%

 

 

3.27

%

 

 

4.00

%

 

 

3.55

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.00

%

 

 

4.82

%

 

 

4.83

%

 

 

4.81

%

Return on plan assets

 

6.60

%

 

 

6.60

%

 

 

7.25

%

 

 

6.71

%

 

 

7.22

%

 

 

7.40

%

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

Net pension cost (credit) for 2020, 2019 and 2018 included the following components:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US

 

 

International

 

 

2020

 

 

2019

 

 

2018

 

 

2020

 

 

2019

 

 

2018

 

Service cost - benefits earned during the period

$

55

 

 

$

49

 

 

$

59

 

 

$

140

 

 

$

112

 

 

$

138

 

Interest cost on projected benefit obligation

 

148

 

 

 

180

 

 

 

167

 

 

 

301

 

 

 

333

 

 

 

304

 

Expected return on plan assets

 

(233

)

 

 

(232

)

 

 

(248

)

 

 

(591

)

 

 

(592

)

 

 

(584

)

Amortization of prior service cost

 

8

 

 

 

10

 

 

 

13

 

 

 

-

 

 

 

7

 

 

 

10

 

Amortization of net loss

 

41

 

 

 

29

 

 

 

47

 

 

 

159

 

 

 

70

 

 

 

140

 

Settlement charge

 

-

 

 

 

37

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

19

 

 

$

73

 

 

$

38

 

 

$

9

 

 

$

(70

)

 

$

8

 

 

 

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

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

Service cost

$

31

 

 

$

29

 

 

$

32

 

Interest cost

 

36

 

 

 

45

 

 

 

43

 

Expected return on plan assets

 

(70

)

 

 

(64

)

 

 

(63

)

Amortization of prior service credit

 

(25

)

 

 

(28

)

 

 

(28

)

Curtailment gain

 

(69

)

 

 

-

 

 

 

-

 

 

$

(97

)

 

$

(18

)

 

$

(16

)

 
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

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Discount rate

 

2.60

%

 

 

3.30

%

 

 

2.38

%

 

 

3.27

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.82

%

 

 

4.83

%
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

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

$

4,593

 

 

$

4,278

 

 

$

9,647

 

 

$

8,111

 

Service cost

 

55

 

 

 

49

 

 

 

140

 

 

 

112

 

Interest cost

 

148

 

 

 

180

 

 

 

301

 

 

 

333

 

Contribution by plan participants

 

-

 

 

 

-

 

 

 

94

 

 

 

63

 

Actuarial losses

 

370

 

 

 

535

 

 

 

1,233

 

 

 

1,304

 

Currency effect

 

-

 

 

 

-

 

 

 

68

 

 

 

50

 

Settlement

 

-

 

 

 

(240

)

 

 

(5

)

 

 

(17

)

Benefits paid

 

(226

)

 

 

(209

)

 

 

(338

)

 

 

(309

)

Projected benefit obligation at end of year

$

4,940

 

 

$

4,593

 

 

$

11,140

 

 

$

9,647

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

4,236

 

 

$

3,748

 

 

$

9,363

 

 

$

7,872

 

Actual return on plan assets

 

760

 

 

 

931

 

 

 

1,282

 

 

 

1,676

 

Currency effect

 

-

 

 

 

-

 

 

 

72

 

 

 

59

 

Company contributions

 

6

 

 

 

6

 

 

 

20

 

 

 

19

 

Contributions by plan participants

 

-

 

 

 

-

 

 

 

94

 

 

 

63

 

Settlement

 

-

 

 

 

(240

)

 

 

-

 

 

 

(17

)

Benefits paid

 

(226

)

 

 

(209

)

 

 

(338

)

 

 

(309

)

Plan assets at fair value at end of year

$

4,776

 

 

$

4,236

 

 

$

10,493

 

 

$

9,363

 

Unfunded Liability

$

(164

)

 

$

(357

)

 

$

(647

)

 

$

(284

)

Amounts Recognized in Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

$

(199

)

 

$

(357

)

 

$

(849

)

 

$

(602

)

Other Assets

 

35

 

 

 

-

 

 

 

202

 

 

 

318

 

 

$

(164

)

 

$

(357

)

 

$

(647

)

 

$

(284

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

$

423

 

 

$

622

 

 

$

1,981

 

 

$

1,638

 

Prior service cost

 

1

 

 

 

9

 

 

 

-

 

 

 

-

 

 

$

424

 

 

$

631

 

 

$

1,981

 

 

$

1,638

 

Accumulated benefit obligation

$

4,739

 

 

$

4,345

 

 

$

10,844

 

 

$

9,376

 

 
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

 

 

 

2020

 

 

 

2019

 

 

 

Target

 

 

 

2020

 

 

 

2019

 

Equity securities

11 - 20

 

%

 

 

15

 

%

 

 

22

 

%

 

40 - 54

 

%

 

 

43

 

%

 

 

50

 

Debt securities

70 - 83

 

 

 

 

76

 

 

 

 

70

 

 

 

28 - 43

 

 

 

 

36

 

 

 

 

31

 

Cash and cash equivalents

0 - 3

 

 

 

 

3

 

 

 

 

2

 

 

 

0 - 5

 

 

 

 

4

 

 

 

 

4

 

Alternative investments

5 - 10

 

 

 

 

6

 

 

 

 

6

 

 

 

15 - 22

 

 

 

 

17

 

 

 

 

15

 

 

 

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, 2020 and 2019, 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

 

 

2020

 

 

2019

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

140

 

 

$

127

 

 

$

13

 

 

$

-

 

 

$

73

 

 

$

59

 

 

$

14

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US (a)

 

527

 

 

 

441

 

 

 

86

 

 

 

-

 

 

 

605

 

 

 

500

 

 

 

105

 

 

 

-

 

International (b)

 

186

 

 

 

182

 

 

 

4

 

 

 

-

 

 

 

320

 

 

 

315

 

 

 

5

 

 

 

-

 

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds (c)

 

1,945

 

 

 

-

 

 

 

1,945

 

 

 

-

 

 

 

1,687

 

 

 

-

 

 

 

1,687

 

 

 

-

 

Government and government-related debt securities (d)

 

1,658

 

 

 

180

 

 

 

1,478

 

 

 

-

 

 

 

1,256

 

 

 

74

 

 

 

1,182

 

 

 

-

 

Collateralized mortgage obligations and mortgage backed securities (e)

 

21

 

 

 

-

 

 

 

21

 

 

 

-

 

 

 

21

 

 

 

-

 

 

 

21

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity (f)

 

204

 

 

 

-

 

 

 

-

 

 

 

204

 

 

 

181

 

 

 

-

 

 

 

-

 

 

 

181

 

Real estate (g)

 

95

 

 

 

-

 

 

 

-

 

 

 

95

 

 

 

93

 

 

 

-

 

 

 

-

 

 

 

93

 

Total

$

4,776

 

 

$

930

 

 

$

3,547

 

 

$

299

 

 

$

4,236

 

 

$

948

 

 

$

3,014

 

 

$

274

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Plan Assets

 

 

2020

 

 

2019

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

 

 

 

 

Level

 

 

Level

 

 

Level

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

 

Total

 

 

One

 

 

Two

 

 

Three

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

457

 

 

$

215

 

 

$

242

 

 

$

-

 

 

$

351

 

 

$

166

 

 

$

185

 

 

$

-

 

Equity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US (a)

 

2,797

 

 

 

2,393

 

 

 

404

 

 

 

-

 

 

 

2,834

 

 

 

2,347

 

 

 

487

 

 

 

-

 

International (b)

 

1,711

 

 

 

1,615

 

 

 

96

 

 

 

-

 

 

 

1,871

 

 

 

1,723

 

 

 

148

 

 

 

-

 

Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds (c)

 

1,260

 

 

 

-

 

 

 

1,260

 

 

 

-

 

 

 

1,105

 

 

 

-

 

 

 

1,105

 

 

 

-

 

Government and government-related debt securities (d)

 

2,405

 

 

 

213

 

 

 

2,192

 

 

 

-

 

 

 

1,602

 

 

 

5

 

 

 

1,597

 

 

 

-

 

Collateralized mortgage obligations and mortgage backed securities (e)

 

122

 

 

 

-

 

 

 

122

 

 

 

-

 

 

 

161

 

 

 

-

 

 

 

161

 

 

 

-

 

Alternative Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity (f)

 

851

 

 

 

-

 

 

 

-

 

 

 

851

 

 

 

623

 

 

 

-

 

 

 

-

 

 

 

623

 

Real estate (g)

 

200

 

 

 

-

 

 

 

-

 

 

 

200

 

 

 

183

 

 

 

-

 

 

 

-

 

 

 

183

 

Other

 

690

 

 

 

-

 

 

 

-

 

 

 

690

 

 

 

633

 

 

 

-

 

 

 

-

 

 

 

633

 

Total

$

10,493

 

 

$

4,436

 

 

$

4,316

 

 

$

1,741

 

 

$

9,363

 

 

$

4,241

 

 

$

3,683

 

 

$

1,439

 

 

(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

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

2018

 

Discount rate

 

2.60

%

 

 

3.30

%

 

 

3.30

%

 

 

4.30

%

 

 

3.70

%

Return on plan assets

-

 

 

-

 

 

 

7.00

%

 

 

7.00

%

 

 

7.00

%

Current medical cost trend rate

 

7.25

%

 

 

7.50

%

 

 

7.25

%

 

 

7.50

%

 

 

7.00

%

Ultimate medical cost trend rate

 

4.50

%

 

 

4.50

%

 

 

4.50

%

 

 

4.50

%

 

 

5.00

%

Year that the rate reaches the ultimate trend rate

2031

 

 

2031

 

 

2031

 

 

2031

 

 

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)

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

Benefit obligation at beginning of year

$

1,193

 

 

$

1,106

 

Service cost

 

31

 

 

 

29

 

Interest cost

 

36

 

 

 

45

 

Contribution by plan participants

 

8

 

 

 

8

 

Actuarial (gains) losses

 

64

 

 

 

65

 

Benefits paid

 

(58

)

 

 

(60

)

Curtailment

 

(40

)

 

 

-

 

Benefit obligation at end of year

$

1,234

 

 

$

1,193

 

Change in Plan Assets

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

1,185

 

 

$

997

 

Actual return on plan assets

 

221

 

 

 

240

 

Contributions by plan participants

 

8

 

 

 

8

 

Benefits paid

 

(58

)

 

 

(60

)

Plan assets at fair value at end of year

$

1,356

 

 

$

1,185

 

Asset (Unfunded Liability)

$

122

 

 

$

(8

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

Actuarial (gains) losses

$

(186

)

 

$

(98

)

Prior service credit

 

(104

)

 

 

(158

)

 

$

(290

)

 

$

(256

)
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

 

2021

$

235

 

 

$

349

 

 

$

56

 

2022

$

235

 

 

$

359

 

 

$

56

 

2023

$

236

 

 

$

370

 

 

$

56

 

2024

$

237

 

 

$

381

 

 

$

56

 

2025

$

237

 

 

$

385

 

 

$

57

 

2026-2030

$

1,193

 

 

$

2,146

 

 

$

297