Attached files

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EX-95 - EX-95 - SCHLUMBERGER LIMITED/NVslb-ex95_9.htm
EX-32.2 - EX-32.2 - SCHLUMBERGER LIMITED/NVslb-ex322_10.htm
EX-32.1 - EX-32.1 - SCHLUMBERGER LIMITED/NVslb-ex321_7.htm
EX-31.2 - EX-31.2 - SCHLUMBERGER LIMITED/NVslb-ex312_8.htm
EX-31.1 - EX-31.1 - SCHLUMBERGER LIMITED/NVslb-ex311_6.htm
EX-10.6 - EX-10.6 - SCHLUMBERGER LIMITED/NVslb-ex106_162.htm
EX-10.5 - EX-10.5 - SCHLUMBERGER LIMITED/NVslb-ex105_161.htm
EX-10.4 - EX-10.4 - SCHLUMBERGER LIMITED/NVslb-ex104_112.htm
EX-10.3 - EX-10.3 - SCHLUMBERGER LIMITED/NVslb-ex103_113.htm
EX-10.2 - EX-10.2 - SCHLUMBERGER LIMITED/NVslb-ex102_115.htm
EX-10.1 - EX-10.1 - SCHLUMBERGER LIMITED/NVslb-ex101_114.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: March 31, 2017

Commission file No.: 1-4601

 

SCHLUMBERGER N.V.

(SCHLUMBERGER LIMITED)

(Exact name of registrant as specified in its charter)

 

 

CURAÇAO

 

52-0684746

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

42 RUE SAINT-DOMINIQUE

 

 

PARIS, FRANCE

 

75007

 

 

 

5599 SAN FELIPE

 

 

HOUSTON, TEXAS, U.S.A.

 

77056

 

 

 

62 BUCKINGHAM GATE

 

 

LONDON, UNITED KINGDOM

 

SW1E 6AJ

 

 

 

PARKSTRAAT 83 THE HAGUE,

 

 

THE NETHERLANDS

 

2514 JG

(Addresses of principal executive offices)

 

(Zip Codes)

Registrant’s telephone number in the United States, including area code, is:   (713) 513-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  (Do not check if a smaller reporting company)

  

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class

Outstanding at March 31, 2017

COMMON STOCK, $0.01 PAR VALUE PER SHARE

1,389,476,854

 

 


 

SCHLUMBERGER LIMITED

First Quarter 2017 Form 10-Q

Table of Contents

 

 

 

 

Page

 PART I

 

Financial Information

 

 

 

 

 

Item 1.

 

Financial Statements

3

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

20

 

 

 

 

Item 4.

 

Controls and Procedures

20

 

 

 

 

 PART II

 

Other Information

 

 

 

 

 

Item 1.

 

Legal Proceedings

21

 

 

 

 

Item 1A.

 

Risk Factors

21

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

21

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

21

 

 

 

 

Item 4.

 

Mine Safety Disclosures

21

 

 

 

 

Item 5.

 

Other Information

22

 

 

 

 

Item 6.

 

Exhibits

23

 

 

 

 

 

 

Certifications

 

 

 

 

2


 

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements.

 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

 

(Stated in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2017

 

 

2016

 

Revenue

 

 

 

 

 

 

 

Services

$

4,937

 

 

$

5,763

 

Product sales

 

1,957

 

 

 

757

 

Total Revenue

 

6,894

 

 

 

6,520

 

Interest & other income

 

46

 

 

 

45

 

Expenses

 

 

 

 

 

 

 

Cost of services

 

4,251

 

 

 

4,795

 

Cost of sales

 

1,825

 

 

 

665

 

Research & engineering

 

211

 

 

 

240

 

General & administrative

 

98

 

 

 

110

 

Merger & integration

 

82

 

 

 

-

 

Interest

 

139

 

 

 

133

 

Income before taxes

 

334

 

 

 

622

 

Taxes on income

 

50

 

 

 

99

 

Net income

 

284

 

 

 

523

 

Net income attributable to noncontrolling interests

 

5

 

 

 

22

 

Net income attributable to Schlumberger

$

279

 

 

$

501

 

 

 

 

 

 

 

 

 

Basic earnings per share of Schlumberger

$

0.20

 

 

$

0.40

 

 

 

 

 

 

 

 

 

Diluted earnings per share of Schlumberger

$

0.20

 

 

$

0.40

 

 

 

 

 

 

 

 

 

Average shares outstanding:

 

 

 

 

 

 

 

Basic

 

1,393

 

 

 

1,254

 

Assuming dilution

 

1,402

 

 

 

1,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

See Notes to Consolidated Financial Statements

 

 

 

3


 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2017

 

 

2016

 

Net income

$

284

 

 

$

523

 

Currency translation adjustments

 

 

 

 

 

 

 

Unrealized net change arising during the period

 

45

 

 

 

17

 

Marketable securities

 

 

 

 

 

 

 

Unrealized gain (loss) arising during the period

 

(4

)

 

 

3

 

Cash flow hedges

 

 

 

 

 

 

 

Net loss on cash flow hedges

 

11

 

 

 

(85

)

Reclassification to net income of net realized loss

 

-

 

 

 

94

 

Pension and other postretirement benefit plans

 

 

 

 

 

 

 

Actuarial loss

 

 

 

 

 

 

 

Amortization to net income of net actuarial loss

 

43

 

 

 

45

 

Prior service cost

 

 

 

 

 

 

 

Amortization to net income of net prior service cost

 

20

 

 

 

25

 

Income taxes on pension and other postretirement benefit plans

 

(1

)

 

 

(7

)

Comprehensive income

 

398

 

 

 

615

 

Comprehensive income attributable to noncontrolling interests

 

5

 

 

 

22

 

Comprehensive income attributable to Schlumberger

$

393

 

 

$

593

 

 

See Notes to Consolidated Financial Statements

 

 

 

4


 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

 

 

 

 

 

2017

 

 

Dec. 31,

 

 

(Unaudited)

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

Cash

$

1,902

 

 

$

2,929

 

Short-term investments

 

5,451

 

 

 

6,328

 

Receivables less allowance for doubtful accounts (2017 - $356; 2016 - $397)

 

8,636

 

 

 

9,387

 

Inventories

 

4,288

 

 

 

4,225

 

Other current assets

 

1,606

 

 

 

1,058

 

 

 

21,883

 

 

 

23,927

 

Fixed Income Investments, held to maturity

 

238

 

 

 

238

 

Investments in Affiliated Companies

 

1,482

 

 

 

1,243

 

Fixed Assets less accumulated depreciation

 

12,507

 

 

 

12,821

 

Multiclient Seismic Data

 

1,089

 

 

 

1,073

 

Goodwill

 

25,045

 

 

 

24,990

 

Intangible Assets

 

9,743

 

 

 

9,855

 

Other Assets

 

4,188

 

 

 

3,809

 

 

$

76,175

 

 

$

77,956

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

$

9,408

 

 

$

10,016

 

Estimated liability for taxes on income

 

1,215

 

 

 

1,188

 

Short-term borrowings and current portion of long-term debt

 

2,449

 

 

 

3,153

 

Dividends payable

 

704

 

 

 

702

 

 

 

13,776

 

 

 

15,059

 

Long-term Debt

 

16,538

 

 

 

16,463

 

Postretirement Benefits

 

1,457

 

 

 

1,495

 

Deferred Taxes

 

1,908

 

 

 

1,880

 

Other Liabilities

 

1,442

 

 

 

1,530

 

 

 

35,121

 

 

 

36,427

 

Equity

 

 

 

 

 

 

 

Common stock

 

12,780

 

 

 

12,801

 

Treasury stock

 

(3,697

)

 

 

(3,550

)

Retained earnings

 

36,052

 

 

 

36,470

 

Accumulated other comprehensive loss

 

(4,529

)

 

 

(4,643

)

Schlumberger stockholders' equity

 

40,606

 

 

 

41,078

 

Noncontrolling interests

 

448

 

 

 

451

 

 

 

41,054

 

 

 

41,529

 

 

$

76,175

 

 

$

77,956

 

 

See Notes to Consolidated Financial Statements

 

 

 

5


 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

284

 

 

$

523

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

Merger & integration charges

 

82

 

 

 

-

 

Depreciation and amortization (1)

 

989

 

 

 

967

 

Pension and other postretirement benefits expense

 

37

 

 

 

60

 

Stock-based compensation expense

 

88

 

 

 

61

 

Pension and other postretirement benefits funding

 

(29

)

 

 

(45

)

Earnings of equity method investments, less dividends received

 

(10

)

 

 

(25

)

Change in assets and liabilities: (2)

 

 

 

 

 

 

 

Decrease in receivables

 

58

 

 

 

414

 

(Increase) decrease in inventories

 

(33

)

 

 

125

 

(Increase) decrease in other current assets

 

(115

)

 

 

85

 

(Increase) decrease in other assets

 

(56

)

 

 

5

 

Decrease in accounts payable and accrued liabilities

 

(670

)

 

 

(983

)

Decrease in estimated liability for taxes on income

 

(31

)

 

 

(104

)

(Decrease) increase in other liabilities

 

(28

)

 

 

2

 

Other

 

90

 

 

 

125

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

656

 

 

 

1,210

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(381

)

 

 

(549

)

SPM investments

 

(144

)

 

 

(597

)

Multiclient seismic data costs capitalized

 

(116

)

 

 

(167

)

Business acquisitions and investments, net of cash acquired

 

(273

)

 

 

(81

)

Sale (purchase) of investments, net

 

883

 

 

 

(2,093

)

Other

 

(24

)

 

 

(26

)

NET CASH USED IN INVESTING ACTIVITIES

 

(55

)

 

 

(3,513

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Dividends paid

 

(696

)

 

 

(629

)

Proceeds from employee stock purchase plan

 

96

 

 

 

116

 

Proceeds from exercise of stock options

 

39

 

 

 

47

 

Stock repurchase program

 

(372

)

 

 

(475

)

Proceeds from issuance of long-term debt

 

334

 

 

 

3,542

 

Repayment of long-term debt

 

(1

)

 

 

(500

)

Net decrease in short-term borrowings

 

(1,015

)

 

 

(561

)

Other

 

(22

)

 

 

47

 

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

 

(1,637

)

 

 

1,587

 

Net decrease in cash before translation effect

 

(1,036

)

 

 

(716

)

Translation effect on cash

 

9

 

 

 

3

 

Cash, beginning of period

 

2,929

 

 

 

2,793

 

Cash, end of period

$

1,902

 

 

$

2,080

 

 

(1) Includes depreciation of property, plant and equipment and amortization of intangible assets, multiclient seismic data costs and SPM investments.  

(2) Net of the effect of business acquisitions.

 

See Notes to Consolidated Financial Statements

 

 

 

6


 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Retained

 

 

Comprehensive

 

 

Noncontrolling

 

 

 

 

 

January 1, 2017 – March 31, 2017

Issued

 

 

In Treasury

 

 

Earnings

 

 

Loss

 

 

Interests

 

 

Total

 

Balance, January 1, 2017

$

12,801

 

 

$

(3,550

)

 

$

36,470

 

 

$

(4,643

)

 

$

451

 

 

$

41,529

 

Net income

 

 

 

 

 

 

 

 

 

279

 

 

 

 

 

 

 

5

 

 

 

284

 

Currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

45

 

 

 

 

 

 

 

45

 

Changes in unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

(4

)

Changes in fair value of cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

11

 

Pension and other postretirement benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

62

 

Shares sold to optionees, less shares exchanged

 

(29

)

 

 

68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39

 

Vesting of restricted stock

 

(49

)

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Shares issued under employee stock purchase plan

 

(12

)

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96

 

Stock repurchase program

 

 

 

 

 

(372

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(372

)

Stock-based compensation expense

 

88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88

 

Dividends declared ($0.50 per share)

 

 

 

 

 

 

 

 

 

(697

)

 

 

 

 

 

 

 

 

 

 

(697

)

Other

 

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(27

)

Balance, March 31, 2017

$

12,780

 

 

$

(3,697

)

 

$

36,052

 

 

$

(4,529

)

 

$

448

 

 

$

41,054

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Retained

 

 

Comprehensive

 

 

Noncontrolling

 

 

 

 

 

January 1, 2016 – March 31, 2016

Issued

 

 

In Treasury

 

 

Earnings

 

 

Loss

 

 

Interests

 

 

Total

 

Balance, January 1, 2016

$

12,693

 

 

$

(13,372

)

 

$

40,870

 

 

$

(4,558

)

 

$

272

 

 

$

35,905

 

Net income

 

 

 

 

 

 

 

 

 

501

 

 

 

 

 

 

 

22

 

 

 

523

 

Currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

17

 

Changes in unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

3

 

Changes in fair value of cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

9

 

Pension and other postretirement benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

63

 

Shares sold to optionees, less shares exchanged

 

(17

)

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Vesting of restricted stock

 

(28

)

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Shares issued under employee stock purchase plan

 

(19

)

 

 

135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116

 

Stock repurchase program

 

 

 

 

 

(475

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(475

)

Stock-based compensation expense

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

Dividends declared ($0.50 per share)

 

 

 

 

 

 

 

 

 

(626

)

 

 

 

 

 

 

 

 

 

 

(626

)

Other

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

19

 

Balance, March 31, 2016

$

12,700

 

 

$

(13,620

)

 

$

40,745

 

 

$

(4,466

)

 

$

303

 

 

$

35,662

 

 

SHARES OF COMMON STOCK

(Unaudited)

 

 

 

 

 

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Issued

 

 

In Treasury

 

 

Outstanding

 

Balance, January 1, 2017

 

1,434

 

 

 

(43

)

 

 

1,391

 

Shares sold to optionees, less shares exchanged

 

-

 

 

 

1

 

 

 

1

 

Vesting of restricted stock

 

-

 

 

 

1

 

 

 

1

 

Shares issued under employee stock purchase plan

 

-

 

 

 

1

 

 

 

1

 

Stock repurchase program

 

-

 

 

 

(5

)

 

 

(5

)

Balance, March 31, 2017

 

1,434

 

 

 

(45

)

 

 

1,389

 

 

See Notes to Consolidated Financial Statements

 

 

7


 

SCHLUMBERGER LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.    Basis of Presentation

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries (Schlumberger) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of Schlumberger management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements.  All intercompany transactions and balances have been eliminated in consolidation.  Operating results for the three-month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017.  The December 31, 2016 balance sheet information has been derived from the Schlumberger 2016 audited financial statements.  For further information, refer to the Consolidated Financial Statements and notes thereto included in the Schlumberger Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on January 25, 2017.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers.  This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.  Schlumberger will adopt this ASU on January 1, 2018.  Schlumberger does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.  

In February 2016, the FASB issued ASU No. 2016-02, Leases.  This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases.  Schlumberger will adopt this ASU on January 1, 2019.  Based on its current lease portfolio, Schlumberger estimates that the adoption of this ASU will result in approximately $1.3 billion of additional assets and liabilities being reflected on its Consolidated Balance Sheet.

2.   Charges and Credits

In connection with Schlumberger’s acquisition of Cameron (See Note 4 – Acquisition of Cameron), Schlumberger recorded $82 million of pretax charges ($68 million after-tax) consisting of employee benefits, facility consolidation and other merger and integration-related costs during the first quarter of 2017.  This charge is classified in Merger & integration in the Consolidated Statement of Income.

There were no charges or credits recorded during the first quarter of 2016.

3.   Earnings Per Share

The following is a reconciliation from basic earnings per share of Schlumberger to diluted earnings per share of Schlumberger:

 

(Stated in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

2016

 

 

Schlumberger Net Income

 

 

Average

Shares

Outstanding

 

 

Earnings per Share

 

 

Schlumberger Net Income

 

 

Average

Shares

Outstanding

 

 

Earnings per Share

 

First Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

279

 

 

 

1,393

 

 

$

0.20

 

 

$

501

 

 

 

1,254

 

 

$

0.40

 

Assumed exercise of stock options

 

-

 

 

 

4

 

 

 

 

 

 

 

-

 

 

 

1

 

 

 

 

 

Unvested restricted stock

 

-

 

 

 

5

 

 

 

 

 

 

 

-

 

 

 

4

 

 

 

 

 

Diluted

$

279

 

 

 

1,402

 

 

$

0.20

 

 

$

501

 

 

 

1,259

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

8


 

The number of outstanding options to purchase shares of Schlumberger common stock that were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, was as follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

2017

 

 

2016

 

First Quarter

 

23

 

 

 

32

 

 

4.   Acquisition of Cameron

On April 1, 2016, Schlumberger acquired all of the outstanding shares of Cameron, a leading provider of flow equipment products, systems and services to the oil and gas industry worldwide. Schlumberger issued approximately 138 million shares of its common stock, which were valued at $9.9 billion at the time of closing, and paid cash of $2.8 billion.  Prior to being acquired by Schlumberger, Cameron reported revenue of approximately $1.6 billion during the first quarter of 2016.

 

5.   Inventories

A summary of inventories, which are stated at the lower of average cost or market, follows:  

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

2017

 

 

2016

 

Raw materials & field materials

$

1,633

 

 

$

1,720

 

Work in progress

 

597

 

 

 

610

 

Finished goods

 

2,058

 

 

 

1,895

 

 

$

4,288

 

 

$

4,225

 

 

 

6.   Fixed Assets

A summary of fixed assets follows:

 

(Stated in millions)

 

 

 

 

 

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

2017

 

 

2016

 

Property, plant & equipment

$

39,857

 

 

$

40,008

 

Less: Accumulated depreciation

 

27,350

 

 

 

27,187