Segment Information

6 Months Ended

Jun. 30, 2019

11. Segment Information

				(Stated in millions)

	Second Quarter 2019						Second Quarter 2018
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,649		$	326		$	1,640		$	350
Drilling		2,421			300			2,234			289
Production		3,077			235			3,253			316
Cameron		1,237			156			1,295			166
Eliminations & other		(115	)		(49	)		(119	)		(27	)
Pretax segment operating income					968						1,094
Corporate & other ⁽¹⁾					(238	)					(239	)
Interest income ⁽²⁾					9						11
Interest expense ⁽³⁾					(146	)					(135	)
Charges and credits ⁽⁴⁾					-						(184	)
	$	8,269		$	593		$	8,303		$	547

⁽¹⁾	Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

⁽²⁾	Interest income excludes amounts which are included in the segments’ income ($2 million in 2019; $1 million in 2018).

⁽³⁾	^{Interest expense excludes amounts which are included in the segments’ income ($10 million in 2019; $9 million in 2018).}

⁽⁴⁾	^{See Note 2 – Charges and Credits.}

				(Stated in millions)

	Six Months 2019						Six Months 2018
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	3,192		$	619		$	3,199		$	656
Drilling		4,808			608			4,360			582
Production		5,967			453			6,209			533
Cameron		2,412			292			2,605			332
Eliminations & other		(230	)		(96	)		(242	)		(35	)
Pretax segment operating income					1,876						2,068
Corporate & other ⁽¹⁾					(511	)					(464	)
Interest income ⁽²⁾					18						36
Interest expense ⁽³⁾					(282	)					(266	)
Charges and credits ⁽⁴⁾					-						(184	)
	$	16,149		$	1,101		$	16,131		$	1,190

⁽¹⁾	Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

⁽²⁾	Interest income excludes amounts which are included in the segments’ income ($5 million in 2019; $4 million in 2018).

⁽³⁾	^{Interest expense excludes amounts which are included in the segments’ income ($20 million in 2019; $21 million in 2018).}

⁽⁴⁾	^{See Note 2 – Charges and Credits.}

Revenue by geographic area was as follows:

					(Stated in millions)

	Second Quarter				Six Months
	2019		2018		2019		2018
North America	$	2,801	$	3,139	$	5,539	$	5,974
Latin America		1,115		919		2,107		1,790
Europe/CIS/Africa		1,896		1,784		3,602		3,496
Middle East & Asia		2,452		2,362		4,790		4,662
Eliminations & other		5		99		111		209
	$	8,269	$	8,303	$	16,149	$	16,131

North America and International revenue disaggregated by segment was as follows:

						(Stated in millions)

	Second Quarter 2019
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	242	$	1,316		$	91		$	1,649
Drilling		553		1,819			49			2,421
Production		1,419		1,657			1			3,077
Cameron		558		702			(23	)		1,237
Other		29		(31	)		(113	)		(115	)
	$	2,801	$	5,463		$	5		$	8,269


	Second Quarter 2018
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	269	$	1,237		$	134		$	1,640
Drilling		568		1,612			54			2,234
Production		1,695		1,556			2			3,253
Cameron		593		678			24			1,295
Other		14		(18	)		(115	)		(119	)
	$	3,139	$	5,065		$	99		$	8,303

			(Stated in millions)

	Six Months 2019
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	458	$	2,568		$	166		$	3,192
Drilling		1,130		3,574			104			4,808
Production		2,792		3,173			2			5,967
Cameron		1,118		1,269			25			2,412
Other		41		(85	)		(186	)		(230	)
	$	5,539	$	10,499		$	111		$	16,149


	Six Months 2018
	North					Eliminations
	America		International			& other			Total
Reservoir Characterization	$	491	$	2,436		$	272		$	3,199
Drilling		1,132		3,125			103			4,360
Production		3,195		3,011			3			6,209
Cameron		1,144		1,413			48			2,605
Other		12		(37	)		(217	)		(242	)
	$	5,974	$	9,948		$	209		$	16,131

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at June 30, 2019 and December 31, 2018. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Due to the nature of its business, Schlumberger does not have significant backlog. Total backlog was $3.0 billion at June 30, 2019, of which approximately 60% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $1.0 billion at June 30, 2019 and $0.9 billion at December 31, 2018. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.