• Print-friendly Annual Report:       English (size 912 KB)                         Part I     Part II     • Market for Schlumberger’s Common Stock and Related Stockholder Matters     • Selected Financial Data     • Management’s Discussion and Analysis of Financial Condition and Results of Operations     • Quantitative and Qualitative Disclosures About Market Risk     • Financial Statements and Supplementary Data       Consolidated Statement of Income       Consolidated Balance Sheet       Consolidated Statement of Cash Flow       Consolidated Statement of Stockholders' Equity       Shares of Common Stock     Notes to Consolidated Financial Statements       Report of Independent Auditors       Quarterly Results     • Changes in and Disagreements with Accountants on Account and Financial Disclosures     • Controls and Procedures     Part III     Part IV		Print friendly pdf of Form 10-K Part II Part II   Item 8    Notes to Consolidated Financial Statements   14.   Goodwill In June 2001, SFAS 142 (Goodwill and Other Intangible Assets) was issued, and adopted by Schlumberger commencing January 1, 2002. Amortization of goodwill and workforce ceased with effect from January 1, 2002. Assembled workforce, net of deferred taxes, of $175 million was reclassified to Goodwill. Amortization of goodwill and other intangibles included in Schlumberger’s results are as follows:   (Stated in millions)       Pretax   2003   2002   2001 Goodwill $ –   $ –   $ 270 Workforce –     –     32 Other intangibles $ 104   $ 72   $ 45   $ 104   $ 72   $ 347     The change in the carrying amount of goodwill is as follows:   (Stated in millions)         2003     2002   Balance at beginning of year $ 4,230   $ 6,261   Reclassification of Assembled Workforce, net of deferred taxes1 –     175   Impairment, charged to income –     (2,638 ) Impact of change in exchange rates 488     370   Reclassified to Assets held for sale (1,334 )   –   Other, including acquisitions and divestitures (100 )   62   Balance at end of year $ 3,284   $ 4,230       1.    Following adoption of SFAS 142 on January 1, 2002. The changes in the carrying amount of goodwill by business segment in 2003 is as follows: (Stated in millions)                                                 Oilfield Services   Western- Geco   Schlumberger Sema   Other   Total   Balance at beginning of year   $ 1,877     $ 215     $ 1,562     $ 576     $ 4,230   Other1     588       14       (228 )     14       388   Reclassified to Assets held for sale     –       –       (1,334 )     –       (1,334 ) Balance at end of year   $ 2,465     $ 229     $ –     $ 590     $ 3,284       1.    Including acquisitions, divestitures and impact of change in exchange rates. The changes in the carrying amount of goodwill by business segment in 2002 is as follows: (Stated in millions)       Oilfield Services   Western- Geco   Schlumberger Sema   Other   Total   Balance at beginning of year $ 1,771   $ 209   $ 3,952   $ 329   $ 6,261   Reclasification of Assembled Workforce, net of deferred taxes   –     –     175     –     175   Impairment, charged to income   –     –     (2,618 )   (20 )   (2,638 ) Other1   106     6     53     267     432   Balance at end of year $ 1,877   $ 215   $ 1,562   $ 576   $ 4,230       1.    Including other acquisitions, divestitures and impact of change in exchange rates.     Go to Part II, Item 8, Notes: 15. Intangible Assets