• 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   24.  Segment Information Schlumberger operates four reportable business segments: Oilfield Services (OFS), WesternGeco, SchlumbergerSema (SLSEMA) and Other. The current SchlumbergerSema segment only includes operations that were sold to Atos Origin on January 29, 2004. The segment information has been reclassified to conform to the current year presentation. The Oilfield Services segment falls into four clearly defined economic and geographical areas and is evaluated on the following basis: North America is a major self-contained market; Latin America comprises regional markets that share a common dependence on the United States; Europe is a major self-contained market that includes the CIS and West Africa, whose economy is increasingly linked to that of Europe; Middle East & Asia includes the remainder of the Eastern Hemisphere, which consists of many countries at different stages of economic development that share a common dependence on the oil and gas industry. The Oilfield Services segment provides virtually all exploration and production services required during the life of an oil and gas reservoir. Schlumberger believes that all the products/services are interrelated and expects similar performance from each. The WesternGeco segment provides comprehensive worldwide reservoir imaging, monitoring, and development services, with extensive seismic crews and data processing centers, as well as a large multiclient seismic library. Services range from 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. WesternGeco is 70% owned by Schlumberger and 30% owned by Baker Hughes. The SchlumbergerSema segment falls into three clearly defined economic and geographic areas and is evaluated on the following basis: North and South America is a major self-contained market; Europe is a major self-contained market that includes the Middle East and Africa; Asia includes the remainder of the Eastern Hemisphere. The SchlumbergerSema segment is a leading information technology services company providing domain expertise and global capabilities delivered on a local basis. SchlumbergerSema has proven capabilities delivering consulting, systems integration, managed services and products serving the energy & utilities, finance, transport and public sector markets. On September 22, 2003, Schlumberger announced the signing of an agreement with Atos Origin for the sale of the SchlumbergerSema business. The sale closed on January 29, 2004. The Other segment comprises principally the Axalto (Cards and Point-of-Sale Terminals), Electricity Meters, Business Continuity, Infodata, Telecom Software Products, Water Services, Essentis and Payphones activities. In 2001, also included is the divested Resource Management Services business. Financial information for the years ended December 31, 2003, 2002 and 2001, by segment, is as follows:   (Stated in millions)       2003   Revenue Income after tax & Min. Int. Minority Interest Tax Expense Income before tax & Min. Int. Assets Depn. & Amortn. Capital Expenditure OFS                                                               North America   $ 2,626     $ 234     $ –     $ 131     $ 365     $ 1,818     $ 265     $ 140 Latin America     1,439       177       –       44       221       1,136       153       102 Europe/CIS/W. Africa     2,605       379       –       81       460       1,644       218       167 Middle East & Asia     2,090       451       –       58       509       1,443       206       246 Elims/Other     63       (47 )     –       28       (19 )     3,482       30       114       8,823       1,194       –       342       1,536       9,523       872       769 WESTERNGECO     1,183       (17 )     (7 )     4       (20 )     1,644       442       240 SLSEMA                                                               North & South America     350       2       –       1       3       535       41       27 Europe/M. East/Africa     2,194       30       1       14       45       2,256       64       51 Asia     144       29       –       5       34       367       22       17 Elims/Other     (11 )     (23 )     –       2       (21 )     80       17       –       2,677       38       1       22       61       3,238       144       95 OTHER     1,480       72       –       37       109       1,498       87       59 Corporate eliminations & Other     (270 )     104       (108 )     (196 )     (200 )     4,138       26       12     $ 13,893     $ 1,391     $ (114 )   $ 209             $ 20,041     $ 1,571     $ 1,175 Interest Income                                     49                         Interest Expense                                     (329 )                       Charges                                     (638 )                                                           $ 568                               (Stated in millions)       2002   Revenue     Income after tax & Min. Int.     Minority Interest     Tax Expense     Income before tax & Min. Int.     Assets   Depn. & Amortn.   Capital Expenditure   OFS                                                                           North America   $ 2,308       $ 174       $ –       $ 100       $ 274       $ 1,866     $ 280     $ 197   Latin America     1,318         143         –         26         169         1,143       157       124   Europe/CIS/W. Africa     2,496         305         –         78         383         1,629       215       285   Middle East & Asia     1,916         402         –         50         452         1,396       198       272   Elims/Other     133         (26 )       –         26         –         3,195       21       93         8,171         998         –         280         1,278         9,229       871       971   WESTERNGECO     1,476         4         1         66         71         2,324       388       515   SLSEMA                                                                           North & South America     356         (36 )       –         (18 )       (54 )       525       31       61   Europe/M. East/Africa     1,927         93         2         37         132         2,263       64       42   Asia     150         (1 )       (1 )       2         –         341       22       17   Elims/Other     (24 )       (47 )       –         (14 )       (61 )       344       1       –         2,409         9         1         7         17         3,473       118       120   OTHER     1,334         11         2         5         18         1,386       68       68   Corporate eliminations & Other     (272 )       25         (96 )       (76 )       (147 )       3,023       88       28       $ 13,118       $ 1,047       $ (92 )     $ 282                 $ 19,435     $ 1,533     $ 1,702   Interest Income                                             68                             Interest Expense                                             (364 )                           Charges                                             (3,168 )                                                                       $ (2,227 )                                 (Stated in millions)         ($ millions)     2001   Revenue     Income after tax & Min. Int.     Minority Interest     Tax Expense     Income before tax & Min. Int.     Assets   Depn. & Amortn.   Capital Expenditure   OFS                                                                           North America   $ 2,847       $ 401       $ –       $ 236       $ 637       $ 2,048     $ 244     $ 555   Latin America     1,456         148         –         35         183         1,307       142       177   Europe/CIS/W. Africa     2,134         308         –         77         385         1,676       180       284   Middle East & Asia     1,772         360         –         56         416         1,302       178       273   Elims/Other     172         (40 )       –         4         (36 )       1,957       31       177         8,381         1,177         –         408         1,585         8,290       775       1,466   WESTERNGECO     1,702         79         35         107         221         2,843       559       676   SLSEMA                                                                           North & South America     381         (29 )       –         (30 )       (59 )       837       40       85   Europe/M. East/Africa     1,447         72         –         27         99         3,532       36       37   Asia     110         6         –         2         8         489       19       43   Elims/Other     (105 )       (54 )       –         (9 )       (63 )       1,699       –       –         1,833         (5 )       –         (10 )       (15 )       6,557       95       165   OTHER     2,016         71         6         11         88         2,199       95       97   Corporate eliminations & Other     (176 )       (458 )       (12 )       48         (422)         2,437       352       49       $ 13,756       $ 864       $ 29       $ 564                 $ 22,326     $ 1,876     $ 2,453   Interest Income                                             153                             Interest Expense                                             (380 )                           Charges                                             (143 )                                                                       $ 1,087                                 Oilfield Services net income eliminations include certain headquarters administrative costs which are not allocated geographically, manufacturing and certain other operations, and costs maintained at the Oilfield Services level. SchlumbergerSema net income eliminations include certain headquarters administrative costs which are not allocated geographically and other costs maintained at the SchlumbergerSema level. Corporate income eliminations principally comprise the amortization of goodwill (in 2001) and other intangibles, as well as nonoperating expenses, such as certain intersegment charges and interest expense (except as shown above), which are not included in the segments' income. Corporate assets largely comprise short-term investments and fixed income investments, held to maturity. During the three years ended December 31, 2003, 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. In each of the three years, only revenue in the US exceeded 10% of consolidated revenue. Revenue in the US in 2003, 2002 and 2001 was $3.8 billion, $4.0 billion and $5.1 billion, respectively. Interest expense excludes amounts which are included in the segments' income (2003 - $5 million: 2002 - $4 million: 2001 - $5 million). Depreciation & Amortization and Capital Expenditure include Multiclient seismic data costs.     Go to Part II, Item 8, Notes: 25. Pension and Other Benefit Plans