5. Inventory
A summary of inventory follows:
(Stated in millions)
As at December 31,
2011 2010
Raw materials & field materials
$2,066
$1,833
Work in process
364
249
Finished goods
2,270
1,722
$4,700
$3,804
6. Fixed Assets
A summary of fixed assets follows:
(Stated in millions)
As at December 31,
2011 2010
Land
$362
$314
Buildings & improvements
2,912
2,631
Machinery & equipment
24,404
21,873
Seismic vessels
1,873
1,861
29,551
26,679
Less accumulated depreciation
16,558
14,608
$12,993
$12,071
The estimated useful lives of Buildings & improvements are primarily 30 to 40 years. The estimated useful lives of
Machinery & equipment are primarily 5 to 10 years. Seismic vessels are depreciated over periods ranging from 20 to 30
years.
Depreciation expense relating to fixed assets was $2.7 billion, $2.4 billion and $2.1 billion in 2011, 2010 and 2009,
respectively.
7. Multiclient Seismic Data
The change in the carrying amount of multiclient seismic data is as follows:
(Stated in millions)
2011 2010
Balance at beginning of year
$394
$288
Capitalized in year
289
326
Charged to expense
(258)
(220)
$425
$394
8. Goodwill
In connection with the change in reportable segments as discussed in Note 17—
Segment Information
, Schlumberger
reallocated the goodwill that existed as of December 31, 2010 to the new reporting units on a relative fair value basis.
The change in the carrying amount of goodwill during 2011 was as follows:
(Stated in millions)
Reservoir
Characterization Drilling
Reservoir
Production Distribution Total
Balance at January 1, 2011
$3,381 $8,150
$2,351
$70 $13,952
Adjustments relating to Smith acquisition
–
175
13
6
194
Other acquisitions
42
45
–
–
87
Divestiture of business
(51)
–
–
–
(51)
Impact of changes in exchange rates
(12)
(8)
(8)
–
(28)
Balance, December 31, 2011
$3,360 $8,362
$2,356
$76 $14,154
50
