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

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.

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.

	(Stated in millions, except per share amounts)									(Stated in millions, except per share amounts)

	Third Quarter				Nine Months					Third Quarter					Nine Months
	2017		2016		2017		2016			2019			2018		2019			2018
Revenue
Services	$	5,895	$	5,023	$	16,308	$	15,741		$	6,332		$	6,345	$	18,390		$	18,222
Product sales		2,010		1,996		5,953		4,962			2,209			2,159		6,299			6,414
Total Revenue		7,905		7,019		22,261		20,703			8,541			8,504		24,689			24,636
Interest & other income		64		54		172		153			21			36		61			118
Expenses
Cost of services		4,939		4,355		13,816		13,482			5,371			5,336		15,794			15,414
Cost of sales		1,858		1,936		5,527		4,734			2,014			1,988		5,800			5,892
Research & engineering		189		253		595		750			176			177		527			524
General & administrative		115		92		323		305			120			105		345			330
Impairments & other		-		-		510		2,573			12,692			-		12,692			184
Merger & integration		49		88		213		272
Interest		142		149		422		431			160			147		462			434
Income (loss) before taxes		677		200		1,027		(1,691	)		(11,971	)		787		(10,870	)		1,976
Taxes on income (loss)		121		10		269		(259	)
Tax expense (benefit)											(598	)		129		(420	)		348
Net income (loss)		556		190		758		(1,432	)		(11,373	)		658		(10,450	)		1,628
Net income attributable to noncontrolling interests		11		14		9		50			10			14		20			29
Net income (loss) attributable to Schlumberger	$	545	$	176	$	749	$	(1,482	)	$	(11,383	)	$	644	$	(10,470	)	$	1,599

Basic earnings (loss) per share of Schlumberger	$	0.39	$	0.13	$	0.54	$	(1.10	)	$	(8.22	)	$	0.46	$	(7.56	)	$	1.15

Diluted earnings (loss) per share of Schlumberger	$	0.39	$	0.13	$	0.54	$	(1.10	)	$	(8.22	)	$	0.46	$	(7.56	)	$	1.15

Average shares outstanding:
Basic		1,385		1,392		1,388		1,345			1,385			1,385		1,385			1,385
Assuming dilution		1,392		1,401		1,395		1,345			1,385			1,392		1,385			1,393

(Stated in millions)

	Third Quarter						Nine Months
	2019			2018			2019			2018
Net income (loss)	$	(11,373	)	$	658		$	(10,450	)	$	1,628
Currency translation adjustments
Unrealized net change arising during the period		(21	)		(47	)		18			(128	)
Marketable securities
Unrealized loss arising during the period		-			(12	)		-			(33	)
Cash flow hedges
Net gain (loss) on cash flow hedges		(27	)		4			(31	)		(6	)
Reclassification to net income (loss) of net realized (gain) loss		3			2			7			(2	)
Pension and other postretirement benefit plans
Amortization to net income (loss) of net actuarial loss		23			47			70			141
Amortization to net income (loss) of net prior service credit		(2	)		(1	)		(8	)		(4	)
Income taxes on pension and other postretirement benefit plans		(1	)		(2	)		(3	)		(7	)
Comprehensive income (loss)		(11,398	)		649			(10,397	)		1,589
Comprehensive income attributable to noncontrolling interests		10			14			20			29
Comprehensive income (loss) attributable to Schlumberger	$	(11,408	)	$	635		$	(10,417	)	$	1,560

(Stated in millions)

Third Quarter

Nine Months

2017

2016

2017

2016

Net income (loss)
$
556

$
190

$
758

$
(1,432
)
Currency translation adjustments

Unrealized net change arising during the period

75

27

49

(26
)
Marketable securities

Unrealized loss arising during the period

(41
)

(5
)

(66
)

(2
)
Cash flow hedges

Net gain (loss) on cash flow hedges

8

(18
)

19

(86
)
Reclassification to net income (loss) of net realized loss (gain)

(4
)

29

4

109

Pension and other postretirement benefit plans

Actuarial loss

Amortization to net income (loss) of net actuarial loss

40

40

119

119

Prior service cost

Amortization to net income (loss) of net prior service cost

20

25

60

76

Income taxes on pension and other postretirement benefit plans

-

(6
)

(2
)

(20
)
Comprehensive income (loss)

654

282

941

(1,262
)
Comprehensive income attributable to noncontrolling interests

11

14

9

50

Comprehensive income (loss) attributable to Schlumberger
$
643

$
268

$
932

$
(1,312
)

(Stated in millions)

	Sept. 30,
	2019			Dec. 31,
	(Unaudited)			2018
ASSETS
Current Assets
Cash	$	1,183		$	1,433
Short-term investments		1,109			1,344
Receivables less allowance for doubtful accounts (2019 - $238; 2018 - $249)		8,332			7,881
Inventories		4,341			4,010
Other current assets		1,186			1,063
		16,151			15,731
Investments in Affiliated Companies		1,335			1,538
Fixed Assets less accumulated depreciation		9,605			11,679
Multiclient Seismic Data		593			601
Goodwill		16,112			24,931
Intangible Assets		7,282			8,727
Other Assets		6,912			7,300
	$	57,990		$	70,507
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	10,364		$	10,223
Estimated liability for taxes on income		1,078			1,155
Short-term borrowings and current portion of long-term debt		340			1,407
Dividends payable		701			701
		12,483			13,486
Long-term Debt		16,333			14,644
Postretirement Benefits		1,101			1,153
Deferred Taxes		591			1,441
Other Liabilities		3,155			3,197
		33,663			33,921
Equity
Common stock		13,012			13,132
Treasury stock		(3,641	)		(4,006	)
Retained earnings		19,111			31,658
Accumulated other comprehensive loss		(4,569	)		(4,622	)
Schlumberger stockholders' equity		23,913			36,162
Noncontrolling interests		414			424
		24,327			36,586
	$	57,990		$	70,507

(Stated in millions)

Sept. 30,

2017

Dec. 31,

(Unaudited)

2016

ASSETS

Current Assets

Cash
$
1,690

$
2,929

Short-term investments

3,262

6,328

Receivables less allowance for doubtful accounts (2017 - $321; 2016 - $397)

9,436

9,387

Inventories

4,308

4,225

Other current assets

1,218

1,058

19,914

23,927

Fixed Income Investments, held to maturity

-

238

Investments in Affiliated Companies

1,481

1,243

Fixed Assets less accumulated depreciation

12,338

12,821

Multiclient Seismic Data

992

1,073

Goodwill

25,113

24,990

Intangible Assets

9,540

9,855

Other Assets

4,191

3,809

$
73,569

$
77,956

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued liabilities
$
9,715

$
10,016

Estimated liability for taxes on income

1,310

1,188

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

1,289

3,153

Dividends payable

700

702

13,014

15,059

Long-term Debt

15,871

16,463

Postretirement Benefits

1,340

1,495

Deferred Taxes

1,893

1,880

Other Liabilities

1,441

1,530

33,559

36,427

Equity

Common stock

12,863

12,801

Treasury stock

(3,966
)

(3,550
)
Retained earnings

35,136

36,470

Accumulated other comprehensive loss

(4,460
)

(4,643
)
Schlumberger stockholders' equity

39,573

41,078

Noncontrolling interests

437

451

40,010

41,529

$
73,569

$
77,956

(Stated in millions)

	Nine Months Ended September 30,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	(10,450	)	$	1,628
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Impairments and other charges		12,692			184
Depreciation and amortization ⁽¹⁾		2,741			2,637
Deferred taxes		(833	)		(67	)
Stock-based compensation expense		329			259
Earnings of equity method investments, less dividends received		2			(41	)
Change in assets and liabilities: ⁽²⁾
Increase in receivables		(429	)		(114	)
Increase in inventories		(400	)		(68	)
(Increase) decrease in other current assets		(127	)		78
Increase in other assets		(12	)		(167	)
Decrease in accounts payable and accrued liabilities		(266	)		(1,011	)
Decrease in estimated liability for taxes on income		(118	)		(32	)
Decrease in other liabilities		(19	)		(6	)
Other		69			102
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,179			3,382
Cash flows from investing activities:
Capital expenditures		(1,230	)		(1,539	)
SPM investments		(526	)		(719	)
Multiclient seismic data costs capitalized		(181	)		(63	)
Business acquisitions and investments, net of cash acquired		(21	)		(290	)
Sale of investments, net		238			1,922
Other		(88	)		(36	)
NET CASH USED IN INVESTING ACTIVITIES		(1,808	)		(725	)
Cash flows from financing activities:
Dividends paid		(2,077	)		(2,077	)
Proceeds from employee stock purchase plan		196			227
Proceeds from exercise of stock options		23			29
Stock repurchase program		(278	)		(300	)
Proceeds from issuance of long-term debt		3,973			220
Repayment of long-term debt		(3,396	)		(900	)
Net decrease in short-term borrowings		(44	)		(103	)
Other		(18	)		(47	)
NET CASH USED IN FINANCING ACTIVITIES		(1,621	)		(2,951	)
Net decrease in cash before translation effect		(250	)		(294	)
Translation effect on cash		-			(12	)
Cash, beginning of period		1,433			1,799
Cash, end of period	$	1,183		$	1,493

(Stated in millions)

Nine Months Ended September 30,

2017

2016

Cash flows from operating activities:

Net income (loss)
$
758

$
(1,432
)
Adjustments to reconcile net income (loss) to cash provided by operating activities:

Impairments and other charges

723

3,144

Depreciation and amortization ⁽¹⁾

2,931

3,078

Pension and other postretirement benefits expense

79

139

Stock-based compensation expense

261

210

Pension and other postretirement benefits funding

(107
)

(127
)
Earnings of equity method investments, less dividends received

(52
)

(51
)
Change in assets and liabilities: ⁽²⁾

(Increase) decrease in receivables

(1,049
)

851

Decrease in inventories

14

556

(Increase) decrease in other current assets

(86
)

241

Decrease (increase) in other assets

202

(335
)
Decrease in accounts payable and accrued liabilities

(533
)

(1,684
)
Increase (decrease) in estimated liability for taxes on income

181

(187
)
(Decrease) increase in other liabilities

(74
)

40

Other

164

(195
)
NET CASH PROVIDED BY OPERATING ACTIVITIES

3,412

4,248

Cash flows from investing activities:

Capital expenditures

(1,482
)

(1,401
)
SPM investments

(492
)

(869
)
Multiclient seismic data costs capitalized

(223
)

(497
)
Business acquisitions and investments, net of cash acquired

(382
)

(2,251
)
Sale of investments, net

3,310

4,439

Other

(92
)

(13
)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

639

(592
)
Cash flows from financing activities:

Dividends paid

(2,086
)

(1,951
)
Proceeds from employee stock purchase plan

212

231

Proceeds from exercise of stock options

49

113

Stock repurchase program

(868
)

(662
)
Proceeds from issuance of long-term debt

681

3,586

Repayment of long-term debt

(2,206
)

(4,749
)
Net (decrease) increase in short-term borrowings

(1,110
)

401

Other

17

(8
)
NET CASH USED IN FINANCING ACTIVITIES

(5,311
)

(3,039
)
Net (decrease) increase in cash before translation effect

(1,260
)

617

Translation effect on cash

21

31

Cash, beginning of period

2,929

2,793

Cash, end of period
$
1,690

$
3,441

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2019 – September 30, 2019	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2019	$	13,132		$	(4,006	)	$	31,658		$	(4,622	)	$	424		$	36,586
Net income (loss)								(10,470	)					20			(10,450	)
Currency translation adjustments											18			(4	)		14
Changes in fair value of cash flow hedges											(24	)					(24	)
Pension and other postretirement benefit plans											59						59
Shares sold to optionees, less shares exchanged		(26	)		49												23
Vesting of restricted stock		(146	)		146												-
Shares issued under employee stock purchase plan		(249	)		445												196
Stock repurchase program					(278	)											(278	)
Stock-based compensation expense		329															329
Dividends declared ($1.50 per share)								(2,077	)								(2,077	)
Other		(28	)		3									(26	)		(51	)
Balance, September 30, 2019	$	13,012		$	(3,641	)	$	19,111		$	(4,569	)	$	414		$	24,327

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2018 – September 30, 2018	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2018	$	12,975		$	(4,049	)	$	32,190		$	(4,274	)	$	419		$	37,261
Net income								1,599						29			1,628
Currency translation adjustments											(128	)		(4	)		(132	)
Changes in unrealized gain on marketable securities											(33	)					(33	)
Changes in fair value of cash flow hedges											(8	)					(8	)
Pension and other postretirement benefit plans											130						130
Shares sold to optionees, less shares exchanged		(37	)		66												29
Vesting of restricted stock		(63	)		63												-
Shares issued under employee stock purchase plan		(67	)		294												227
Stock repurchase program					(300	)											(300	)
Stock-based compensation expense		259															259
Dividends declared ($1.50 per share)								(2,077	)								(2,077	)
Other		(9	)		2									(29	)		(36	)
Balance, September 30, 2018	$	13,058		$	(3,924	)	$	31,712		$	(4,313	)	$	415		$	36,948

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
July 1, 2019 – September 30, 2019	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, July 1, 2019	$	13,037		$	(3,827	)	$	31,186		$	(4,544	)	$	421		$	36,273
Net income (loss)								(11,383	)					10			(11,373	)
Currency translation adjustments											(21	)		(4	)		(25	)
Changes in fair value of cash flow hedges											(24	)					(24	)
Pension and other postretirement benefit plans											20						20
Vesting of restricted stock		(20	)		20												-
Shares issued under employee stock purchase plan		(134	)		245												111
Stock repurchase program					(79	)											(79	)
Stock-based compensation expense		135															135
Dividends declared ($0.50 per share)								(692	)								(692	)
Other		(6	)											(13	)		(19	)
Balance, September 30, 2019	$	13,012		$	(3,641	)	$	19,111		$	(4,569	)	$	414		$	24,327

	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
July 1, 2018 – September 30, 2018	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, July 1, 2018	$	13,030		$	(4,001	)	$	31,760		$	(4,305	)	$	413		$	36,897
Net income								644						14			658
Currency translation adjustments											(47	)		(3	)		(50	)
Changes in unrealized gain on marketable securities											(12	)					(12	)
Changes in fair value of cash flow hedges											6						6
Pension and other postretirement benefit plans											44						44
Shares sold to optionees, less shares exchanged		(7	)		13												6
Vesting of restricted stock		(10	)		10												-
Shares issued under employee stock purchase plan		(34	)		154												120
Stock repurchase program					(100	)											(100	)
Stock-based compensation expense		83															83
Dividends declared ($0.50 per share)								(692	)								(692	)
Other		(4	)								1			(9	)		(12	)
Balance, September 30, 2018	$	13,058		$	(3,924	)	$	31,712		$	(4,313	)	$	415		$	36,948

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

(Stated in millions)

Accumulated

Other

Common Stock

Retained

Comprehensive

Noncontrolling

January 1, 2017 – September 30, 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

749

9

758

Currency translation adjustments

49

49

Changes in unrealized gain on marketable securities

(66
)

(66
)
Changes in fair value of cash flow hedges

23

23

Pension and other postretirement benefit plans

177

177

Shares sold to optionees, less shares exchanged

(39
)

88

49

Vesting of restricted stock

(98
)

98

-

Shares issued under employee stock purchase plan

(52
)

264

212

Stock repurchase program

(868
)

(868
)
Stock-based compensation expense

261

261

Dividends declared ($1.50 per share)

(2,083
)

(2,083
)
Other

(10
)

2

(23
)

(31
)
Balance, September 30, 2017
$
12,863

$
(3,966
)

$
35,136

$
(4,460
)

$
437

$
40,010

(Stated in millions)

Accumulated

Other

Common Stock

Retained

Comprehensive

Noncontrolling

January 1, 2016 – September 30, 2016
Issued

In Treasury

Earnings

Loss

Interests

Total

Balance, January 1, 2016
$
12,693

$
(13,372
)

$
40,870

$
(4,558
)

$
272

$
35,905

Net loss

(1,482
)

50

(1,432
)
Currency translation adjustments

(26
)

(26
)
Changes in unrealized gain on marketable securities

(2
)

(2
)
Changes in fair value of cash flow hedges

23

23

Pension and other postretirement benefit plans

175

175

Shares sold to optionees, less shares exchanged

(52
)

165

113

Vesting of restricted stock

(84
)

84

-

Shares issued under employee stock purchase plan

(55
)

286

231

Stock repurchase program

(662
)

(662
)
Stock-based compensation expense

210

210

Dividends declared ($1.50 per share)

(2,018
)

(2,018
)
Acquisition of Cameron International Corporation

103

9,924

57

10,084

Other

8

4

(39
)

(27
)
Balance, September 30, 2016
$
12,823

$
(3,571
)

$
37,370

$
(4,388
)

$
340

$
42,574

			(Stated in millions)								(Stated in millions)

						Shares								Shares
	Issued		In Treasury			Outstanding			Issued		In Treasury			Outstanding
Balance, January 1, 2017		1,434		(43	)		1,391
Balance, January 1, 2019										1,434		(51	)		1,383
Shares sold to optionees, less shares exchanged		-		1			1			-		1			1
Vesting of restricted stock		-		1			1			-		1			1
Shares issued under employee stock purchase plan		-		4			4			-		6			6
Stock repurchase program		-		(12	)		(12	)		-		(7	)		(7	)
Balance, September 30, 2017		1,434		(49	)		1,385
Balance, September 30, 2019										1,434		(50	)		1,384

The accompanying unaudited consolidated financial statements of Schlumberger Limited and its subsidiaries ~~(Schlumberger)~~(“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 nine-month period ended September 30, ~~2017~~2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, ~~2017.~~2019. The December 31, ~~2016~~2018 balance sheet information has been derived from the Schlumberger ~~2016~~2018 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,~~2018, filed with the Securities and Exchange Commission on January ~~25, 2017.~~23, 2019.

~~In May 2014,~~Certain prior period amounts have been reclassified to conform to 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 has concluded that the adoption of this ASU will not 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~~.period presentation.

In connection with the preparation of its third quarter 2019 financial statements, Schlumberger recorded the following ~~charges and credits during the first nine months of 2017:~~

During the second quarter of 2017, Schlumberger also entered into discussions with another customer relating to certain of its outstanding accounts receivable. As a result of these ongoing discussions, Schlumberger recorded a charge of $50 million to adjust these receivables to their estimated net realizable value.

~~These charges are classified in~~ ~~Impairments & other~~ ~~in the~~ ~~Consolidated Statement of Income (Loss).~~

~~The following is a summary of the charges and credits recorded during the first nine months of 2017:~~

~~Schlumberger recorded the following charges and credits during the first nine months of 2016:~~

As a result of the persistent unfavorable oil and gas industry market conditions that continued to deteriorate in the first half of 2016, and the related impact on 2016 first-half operating results and expected customer activity levels, Schlumberger determined that the carrying values of certain assets were no longer recoverable and took certain decisions that resulted in the following impairments and other charges, all of which are classified in as Impairments & other in the Consolidated Statement of Income (Loss):

	(Stated in millions)

	Pretax		Tax			Net
Goodwill	$	8,828	$	(43	)	$	8,785
Intangible assets		1,085		(248	)		837
North America pressure pumping		1,575		(344	)		1,231
Other North America-related		310		(53	)		257
Argentina		127		-			127
Equity-method investments		231		(12	)		219
Schlumberger Production Management		294		-			294
Other		242		(13	)		229
	$	12,692	$	(713	)	$	11,979

-•

During August 2019, Schlumberger’s market capitalization deteriorated significantly compared to the end of the second quarter of 2019. Schlumberger’s stock price reached a low not seen since 2005. Additionally, the Philadelphia Oil Services Sector Index, which is comprised of companies involved in the oil services sector, reached an 18-year low.

As a result of these facts, Schlumberger determined that it was more likely than not that the fair value of certain of its reporting units were less than their carrying value. Therefore, Schlumberger performed an interim goodwill impairment test as of August 31, 2019.

As of August 31, 2019, Schlumberger had 17 reporting units with goodwill balances aggregating $25.0 billion. Schlumberger determined that the fair value of 7 of its reporting units, representing approximately $13.8 billion of the goodwill, was substantially in excess of their carrying value. Schlumberger performed a detailed quantitative impairment assessment of the remaining 10 reporting units, which represented $11.2 billion of goodwill. As a result of this assessment, Schlumberger concluded that the goodwill associated with 9 of the 10 reporting units was impaired, resulting in an $8.8 billion goodwill impairment charge. This charge primarily relates to Schlumberger’s Drilling and Cameron segments.

Following the $8.8 billion goodwill impairment charge relating to these nine reporting units, only three had a remaining goodwill balance. These 3 reporting units had goodwill balances which ranged between $0.4 billion and $0.6 billion and aggregated to $1.5 billion as of August 31, 2019. The 10th reporting unit, which was determined not to be impaired, had $0.9 billion of goodwill.

Schlumberger primarily used the income approach to estimate the fair value of its reporting units, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using Schlumberger’s estimate of the discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results. The market approach involves significant judgement involved in the selection of the appropriate peer group companies and valuation multiples.

Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. Schlumberger selected the assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. Schlumberger’s estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual results may differ from those used in Schlumberger’s valuations which could result in additional impairment charges in the future.

The discount rates utilized to value Schlumberger’s reporting units were between 12.5% and 14.0%, depending on the risks and uncertainty inherent in the respective reporting unit. Assuming all other assumptions and inputs used in each of the respective discounted cash flow analysis were held constant, a 50 basis point increase in the discount rate assumption would have increased the goodwill impairment charge by approximately $0.3 billion. Conversely, assuming all other assumptions and inputs used in each of the respective discounted cash flow analysis were held constant, a 50 basis point decrease in the discount rate assumption would have decreased the goodwill impairment charge by approximately $0.4 billion.

•

The negative market indicators described above combined with deteriorating market conditions in North America, as well as the results of the previously mentioned fair value determinations of certain of Schlumberger’s reporting units and the appointment of a new Chief Executive Officer (as described below), were all triggering events that indicated that certain of Schlumberger’s long-lived tangible and intangible assets may be impaired.

Recoverability testing, which was performed as of August 31, 2019, indicated that long-lived assets associated with certain asset groups were impaired. The estimated fair value of these asset groups was determined to be below their carrying value. As a result, Schlumberger recorded the following impairment and related charges:

$~~646~~1.085 billion of intangible assets, of which $842 million relates to Schlumberger’s 2010 acquisition of ~~severance costs associated with further headcount reductions.~~Smith International, Inc. The remaining $243 million primarily relates to other acquisitions in North America.

$~~209 million impairment~~1.575 billion of charges relating to Schlumberger’s pressure pumping business in North America. This amount consists of $1.324 billion of pressure pumping equipment ~~in North America.~~and related assets; $98 million of right-of-use assets under operating leases; $121 million relating to a supply contract; $19 million of inventory; and $13 million of severance.

$~~165~~310 million ~~impairment~~ of ~~facilities~~charges primarily relating to other businesses in North ~~America.~~America, consisting of $230 million of fixed asset impairments, $70 million of inventory write-downs and $10 million of severance.

•

As a result of the ongoing economic challenges in Argentina, Schlumberger recorded $127 million of charges during the third quarter of 2019. This consists of $72 million of asset impairments, a $26 million devaluation charge and $29 million of severance.

•

Schlumberger also recorded the following impairment and restructuring charges:

$~~684~~231 million ~~of other fixed asset impairments primarily~~ relating to ~~other underutilized equipment.~~ certain equity method investments that were determined to be other-than-temporarily impaired.

$~~616~~294 million ~~write-down of~~impairment relating to the carrying value of certain ~~inventory to its net realizable value.~~smaller Schlumberger Production Management (“SPM”) projects.

$~~198~~242 million ~~impairment~~of restructuring charges consisting of: $62 million of severance; $57 million relating to the acceleration of stock-based compensation expense associated with certain individuals; $49 million of business divestiture costs; $29 million relating to the repurchase of certain ~~multiclient seismic data, largely related to the US Gulf of Mexico.~~

Senior Notes (see Note 9 -

~~$55~~Long-term Debt); and $45 million of other ~~costs, primarily relating to facility closure costs.~~provisions.

The fair value of certain of these impaired assets was estimated based on the present value of projected future cash flows that the underlying assets are expected to generate. Such estimates included unobservable inputs that required significant judgment.

~~In connection with Schlumberger’s acquisition of Cameron, Schlumberger recorded $185 million of charges, classified in~~ ~~Merger & integration~~ ~~in the~~ ~~Consolidated Statement of Income (Loss),~~ ~~consisting~~Substantially all of the ~~following: $47 million relating~~charges recorded during the third quarter of 2019 will not result in any future cash outflows.

During the third quarter of 2019, Schlumberger’s Board of Directors announced the appointment of a new Chief Executive Officer. As the new Chief Executive Officer further develops and implements his strategy, it may result in additional restructuring charges in future periods. Furthermore, Schlumberger may be required to employee benefits for change-in-control arrangements and retention bonuses; $45 million of transaction costs, including advisory and legal fees; $40 million of facility closure costs, and $53 million of other merger and integration-related costs.~~Additionally, Schlumberger recorded $150 million of~~record additional impairment charges ~~related to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value, which is classified in~~ ~~Cost of sales~~ ~~in the~~ ~~Consolidated Statement of Income (Loss)~~. if industry conditions deteriorate.

During the second quarter of ~~2016.~~2018, Schlumberger recorded a $184 million pretax charge ($164 million after-tax) associated with headcount reductions, primarily to further streamline its support cost structure. This charge is classified in Impairments & other in the Consolidated Statement of Income (Loss).

~~The following is a summary of the~~There were 0 charges ~~and~~or credits recorded during the first ~~nine months~~and third quarters of ~~2016:~~

(Stated in millions)

Pretax

Tax

Net

Impairments & other

Workforce reduction
$
646

$
63

$
583

North America pressure pumping asset impairments

209

67

142

Facilities impairments

165

58

107

Other fixed asset impairments

684

52

632

Inventory write-downs

616

49

567

Multiclient seismic data impairment

198

62

136

Other restructuring charges

55

-

55

Merger & integration

Merger-related employee benefits

93

17

76

Professional fees

45

10

35

Facility closure costs

51

13

38

Other merger and integration-related

83

11

72

Cost of sales

Amortization of inventory fair value adjustment

299

90

209

$
3,144

$
492

$
2,652

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

(Stated in millions, except per share amounts)	(Stated in millions, except per share amounts)														(Stated in millions, except per share amounts)

	2017						2016								2019								2018
	Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Income			Average Shares Outstanding		Earnings per Share			Schlumberger Net Income (Loss)			Average Shares Outstanding		Loss per Share			Schlumberger Net Income (Loss)		Average Shares Outstanding		Earnings per Share
Third Quarter
Basic	$	545		1,385	$	0.39	$	176			1,392	$	0.13		$	(11,383	)		1,385	$	(8.22	)	$	644		1,385	$	0.46
Assumed exercise of stock options		-		1				-			4					-			-					-		-
Unvested restricted stock		-		6				-			5					-			-					-		7
Diluted	$	545		1,392	$	0.39	$	176			1,401	$	0.13		$	(11,383	)		1,385	$	(8.22	)	$	644		1,392	$	0.46


	2017						2016								2019								2018
	Schlumberger Net Income		Average Shares Outstanding		Earnings per Share		Schlumberger Net Loss			Average Shares Outstanding		Loss per Share			Schlumberger Net Income (Loss)			Average Shares Outstanding		Loss per Share			Schlumberger Net Income (Loss)		Average Shares Outstanding		Earnings per Share
Nine Months
Basic	$	749	$	1,388	$	0.54	$	(1,482	)	$	1,345	$	(1.10	)	$	(10,470	)	$	1,385	$	(7.56	)	$	1,599	$	1,385	$	1.15
Assumed exercise of stock options		-		2				-			-					-			-					-		1
Unvested restricted stock		-		5				-			-					-			-					-		7
Diluted	$	749	$	1,395	$	0.54	$	(1,482	)	$	1,345	$	(1.10	)	$	(10,470	)	$	1,385	$	(7.56	)	$	1,599	$	1,393	$	1.15

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)	(Stated in millions)				(Stated in millions)

	2017		2016		2019		2018
Third Quarter		43		24		47		40
Nine Months		30		47		47		40

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.

The following supplemental pro forma results of operations assume that Cameron had been acquired as of January 1, 2015. The supplemental pro forma financial information was prepared based on the historical financial information of Schlumberger and Cameron and has been adjusted to give effect to pro forma adjustments that are both directly attributable to the transaction and factually supportable. The pro forma amounts reflect certain adjustments to intangible asset amortization expense, interest and income taxes resulting from purchase accounting. The pro forma amounts also reflect adjustments to the 2016 results to exclude the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value and other merger and integration costs of $177 million and $430 million, net of taxes, for the three and nine months ended September 30, 2016, respectively.

The supplemental pro forma financial information presented below does not include any anticipated cost savings or the expected realization of other synergies associated with this transaction. Accordingly, this supplemental pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been had the acquisition occurred on January 1, 2015, nor is it indicative of future results of operations.

A summary of inventories, which are stated at the lower of average cost or ~~market,~~net realizable value, is as follows:

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Sept. 30,		Dec. 31,		Sept. 30,		Dec. 31,
	2017		2016		2019		2018
Raw materials & field materials	$	1,898	$	1,720	$	1,964	$	1,803
Work in progress		537		610		606		519
Finished goods		1,873		1,895		1,771		1,688
	$	4,308	$	4,225	$	4,341	$	4,010

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Sept. 30,		Dec. 31,		Sept. 30,		Dec. 31,
	2017		2016		2019		2018
Property, plant & equipment	$	40,421	$	40,008	$	35,961	$	38,664
Less: Accumulated depreciation		28,083		27,187		26,356		26,985
	$	12,338	$	12,821	$	9,605	$	11,679

(Stated in millions)	(Stated in millions)				(Stated in millions)

	2017		2016		2019		2018
Third Quarter	$	591	$	627	$	499	$	516
Nine Months	$	1,796	$	2,053	$	1,525	$	1,564

The change in the carrying amount of multiclient seismic data for the nine months ended September 30, ~~2017~~2019 was as follows:

(Stated in millions)	(Stated in millions)			(Stated in millions)

Balance at December 31, 2016	$	1,073
Balance at December 31, 2018				$	601
Capitalized in period		223			181
Charged to expense		(304	)		(189	)
Balance at September 30, 2017	$	992
Balance at September 30, 2019				$	593

The gross book value, accumulated amortization and net book value of intangible assets were as follows:

	(Stated in millions)												(Stated in millions)

	Sept. 30, 2017						Dec. 31, 2016						Sept. 30, 2019						Dec. 31, 2018
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	4,969	$	1,053	$	3,916	$	4,938	$	865	$	4,073	$	3,859	$	853	$	3,006	$	4,768	$	1,243	$	3,525
Technology/technical know-how		3,661		1,019		2,642		3,655		835		2,820		2,526		735		1,791		3,494		1,246		2,248
Tradenames		2,847		537		2,310		2,847		458		2,389		1,911		248		1,663		2,799		628		2,171
Other		1,284		612		672		1,122		549		573		1,432		610		822		1,404		621		783
	$	12,761	$	3,221	$	9,540	$	12,562	$	2,707	$	9,855	$	9,728	$	2,446	$	7,282	$	12,465	$	3,738	$	8,727

(Stated in millions)	(Stated in millions)				(Stated in millions)

	2017		2016		2019		2018
Third Quarter	$	165	$	156	$	156	$	167
Nine Months	$	501	$	405	$	480	$	506

Based on the net book value of intangible assets at September 30, ~~2017,~~2019, amortization charged to income for the subsequent five years is estimated to be: fourth quarter of ~~2017—$170 million; 2018—$687 million;~~ 2019—$~~675~~138 million; 2020—$~~628~~528 million; 2021—$~~603~~518 million; 2022—$515 million; 2023—$497 million; and ~~2022—~~2024—$~~592~~477 million.

(Stated in millions)	(Stated in millions)				(Stated in millions)

	Sept. 30,		Dec. 31,		Sept. 30,		Dec. 31,
	2017		2016		2019		2018
Commercial paper borrowings	$	2,393	$	2,421
4.00% Senior Notes due 2025		1,741		1,740
3.30% Senior Notes due 2021		1,595		1,594	$	1,597	$	1,596
3.00% Senior Notes due 2020		1,593		1,591
3.65% Senior Notes due 2023		1,492		1,491		1,494		1,493
2.35% Senior Notes due 2018		1,298		1,297
3.90% Senior Notes due 2028						1,442		-
4.20% Senior Notes due 2021		1,100		1,100		1,100		1,100
2.40% Senior Notes due 2022		996		996		998		997
4.00% Senior Notes due 2025						929		1,742
4.30% Senior Notes due 2029						845		-
3.75% Senior Notes due 2024						746		-
1.00% Guaranteed Notes due 2026						654		678
2.65% Senior Notes due 2022						598		598
0.00% Notes due 2024						544		-
0.25% Notes due 2027						543		-
0.50% Notes due 2031						536		-
2.20% Senior Notes due 2020						499		499
3.00% Senior Notes due 2020						415		1,596
3.63% Senior Notes due 2022		846		845		294		847
0.63% Guaranteed Notes due 2019		704		622
1.50% Guaranteed Notes due 2019		599		536
7.00% Notes due 2038		213		214		209		210
4.50% Notes due 2021		136		137		130		132
5.95% Notes due 2041		115		116		114		115
3.60% Notes due 2022		110		110		108		109
5.13% Notes due 2043		99		99		99		99
4.00% Notes due 2023		82		83		81		82
3.70% Notes due 2024		56		56		55		55
6.38% Notes due 2018		-		297
Commercial paper borrowings						2,128		2,433
Other		703		1,118		175		263
	$	15,871	$	16,463	$	16,333	$	14,644

During the third quarter of 2019, Schlumberger issued €500 million of 0.00% Notes due 2024, €500 million of 0.25% Notes due 2027 and €500 million of 0.50% Notes due 2031.

In September 2019, Schlumberger repurchased $783 million of its 3.00% Senior Notes due 2020 and $321 million of its 3.625% Senior Notes due 2022. Schlumberger paid a premium of $29 million in connection with these repurchases. This premium was classified as Impairments & other in the Consolidated Statement of Income (Loss). (See Note 2 - Charges and Credits.)

In April 2019, Schlumberger completed a debt exchange offer, pursuant to which it issued $1.500 billion in principal of 3.90% Senior Notes due 2028 (the “New Notes”) in exchange for $401 million of 3.00% Senior Notes due 2020, $234 million of 3.63% Senior Notes due 2022 and $817 million of 4.00% Senior Notes due 2025. In connection with the exchange of principal, Schlumberger paid a premium of $48 million, substantially all of which was in the form of New Notes. This premium is being amortized as additional interest expense over the term of the New Notes.

The estimated fair value of Schlumberger’s Long-term Debt, based on quoted market prices at September 30, ~~2017~~2019 and December 31, ~~2016,~~2018, was ~~$16.2~~$16.9 billion and ~~$16.8~~$14.6 billion, respectively.

At September 30, 2019, Schlumberger had separate committed credit facility agreements aggregating $6.5 billion with commercial banks, of which $4.1 billion was available and unused. These committed facilities support commercial paper programs in the United States and Europe, of which $1.0 billion matures in February 2020, $2.0 billion matures in February 2023, $2.0 billion matures in February 2024 and $1.5 billion matures in July 2024. Interest rates and other terms of borrowing under these lines of credit vary by facility.

Borrowings under Schlumberger’s commercial paper programs at September 30, 2019 were $2.4 billion, of which $0.3 billion was classified in Short-term borrowings and current portion of long-term debt and the remaining $2.1 billion was classified in Long-term Debt in the Consolidated Balance Sheet. At December 31, 2018, borrowings under the commercial paper ~~program at September 30, 2017~~programs were $2.4 billion, all of which was classified ~~within~~ in Long-term ~~Debt~~debt in the Consolidated Balance Sheet. ~~At December 31, 2016, borrowings under the commercial paper program were $2.6 billion, of which $2.4 billion was classified within~~ ~~Long-term debt~~ ~~and $0.2 billion was classified in~~ ~~Short-term borrowings and current portion of long-term debt~~ ~~in the~~ ~~Consolidated Balance Sheet~~.

Schlumberger is exposed to market risks related to fluctuations in foreign currency exchange rates and interest rates. To mitigate these risks, Schlumberger utilizes derivative instruments. Schlumberger does not enter into derivative transactions for speculative purposes.

Schlumberger is subject to interest rate risk on its debt and its investment portfolio. Schlumberger maintains an interest rate risk management strategy that uses a mix of variable and fixed rate debt combined with its investment portfolio, ~~and occasionally interest rate swaps,~~ to mitigate the exposure to changes in interest rates.

During 2013, Schlumberger entered into a cross currency swap for a notional amount of €0.5 billion in order to hedge changes in the fair value of Schlumberger’s €0.5 billion 1.50% Guaranteed Notes due 2019. Under the terms of this swap, Schlumberger will receive interest at a fixed rate of 1.50% on the euro notional amount and pay interest at a floating rate of three-month LIBOR plus approximately 64 basis points on the US dollar notional amount.

This cross currency swap is designated as a fair value hedge of the underlying debt. This derivative instrument is marked to market with gains and losses recognized currently in income to largely offset the respective gains and losses recognized on changes in the fair value of the hedged debt.

At September 30, ~~2017,~~2019, Schlumberger had fixed rate debt ~~of $13.0~~aggregating $14.0 billion and variable rate debt ~~of $4.2 billion after taking into account the effect of the swap.~~

~~Short-term investments~~ ~~were $3.3 billion at September 30, 2017. The carrying value of these investments approximated fair value, which was estimated using quoted market prices for those or similar investments.~~aggregating $2.7 billion.

As a multinational company, Schlumberger ~~conducts its business~~generates revenue in ~~over 85~~more than 120 countries. Schlumberger’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of Schlumberger’s expenses isare incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which Schlumberger conducts business, the US ~~dollar–reported~~dollar-reported expenses will increase (decrease).

Schlumberger is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. Schlumberger ~~is also exposed to risks on future cash flows relating to certain of its fixed rate debt that is denominated in currencies other than the functional currency. Schlumberger~~ uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the ~~effective portion of~~ changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Accumulated Other Comprehensive Loss. Amounts recorded in Accumulated Other Comprehensive Loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings. ~~The ineffective portion~~

Schlumberger is also exposed to risks on future cash flows relating to certain of its fixed rate debt denominated in currencies other than the functional currency. Schlumberger uses cross-currency swaps to provide a hedge against these cash flow risks.

During 2017, a Canadian-dollar functional currency subsidiary of Schlumberger issued $1.1 billion of US-dollar denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of $1.1 billion in order to hedge changes in the fair value of ~~hedging instruments, if any, is recorded directly~~its $0.5 billion of 2.20% Senior Notes due 2020 and its $0.6 billion of 2.65% Senior Notes due 2022. These cross-currency swaps effectively convert the US-dollar denominated notes to ~~earnings.~~Canadian-dollar denominated debt with fixed annual interest rates of 1.97% and 2.52%, respectively.

~~At September 30, 2017,~~During the third quarter of 2019, a US-dollar functional currency subsidiary of Schlumberger ~~recognized a cumulative net gain~~issued €1.5 billion of ~~$4 million~~Euro-denominated debt. Schlumberger entered into cross-currency swaps for an aggregate notional amount of €1.5 billion in ~~Accumulated other comprehensive loss~~ ~~relating~~order to ~~revaluation~~hedge changes in the fair value of ~~foreign currency forward contracts~~its €0.5 billion 0.00% Notes due 2024, €0.5 billion 0.25% Notes due 2027 and ~~foreign currency options designated as cash flow hedges,~~€0.5 billion Notes due 2031. These cross-currency swaps effectively convert the ~~majority~~Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of ~~which is expected to be reclassified into earnings within the next 12 months.~~2.29%, 2.51% and 2.76%, respectively.

Schlumberger is exposed to changes in the fair value of assets and liabilities that are denominated in currencies other than the functional currency. While Schlumberger uses foreign currency forward contracts and foreign currency options to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the contracts is recorded on the Consolidated Balance Sheet, and changes in the fair value are recognized in the Consolidated Statement of Income (Loss) as are changes in fair value of the hedged item.

At September 30, ~~2017,~~2019, contracts were outstanding for the US dollar equivalent of ~~$3.6~~$6.8 billion in various foreign currencies, of which ~~$0.8~~$2.8 billion ~~related~~relates to hedges of debt denominated in currencies other than the functional currency.

(Stated in millions)

Fair Value of Derivatives

Consolidated Balance Sheet Classification

Sept. 30,

Dec. 31,

2017

2016

Derivative Assets

Derivatives designated as hedges:

Foreign exchange contracts
$
6

$
1

Other current assets

Derivatives not designated as hedges:

Foreign exchange contracts
$
18

$
42

Other current assets

$
24

$
43

Derivative Liabilities

Derivatives designated as hedges:

Foreign exchange contracts
$
1

$
18

Accounts payable and accrued liabilities
Cross currency swap

44

49

Other Liabilities

$
45

$
67

Derivatives not designated as hedges:

Foreign exchange contracts
$
38

$
59

Accounts payable and accrued liabilities

$
83

$
126

~~The~~At September 30, 2019, Schlumberger recognized a cumulative $37 million loss in Accumulated Other Comprehensive Loss relating to changes in the fair value of ~~all outstanding derivatives was determined using a model with inputs that are observable in the market or that can be derived from, or corroborated by, observable data.~~foreign currency forward contracts and cross-currency swaps.

The effect of derivative instruments designated as fair value and cash flow hedges, and those not designated as hedges, on the Consolidated Statement of (Loss) Income ~~(Loss)~~ was as follows:

							(Stated in millions)													(Stated in millions)

	Gain (Loss) Recognized in Income (Loss)													Gain (Loss) Recognized in Income (Loss)
	Third Quarter						Nine Months							Third Quarter						Nine Months
	2017			2016			2017			2016			Consolidated Statement of Income (Loss) Classification	2019			2018			2019			2018			Consolidated Statement of Income (Loss) Classification
Derivatives designated as fair value hedges:
Cross currency swap	$	19		$	5		$	66		$	9		Interest
Cross currency swaps														$	-		$	6		$	-		$	(6	)	Interest expense

Derivatives designated as cash flow hedges:
Foreign exchange contracts														$	(3	)	$	(2	)	$	(7	)	$	3		Cost of services/sales
Cross currency swaps															(2	)		(30	)		(40	)		25		Interest expense
														$	(5	)	$	(32	)	$	(47	)	$	28
Derivatives not designated as hedges:
Foreign exchange contracts	$	(10	)	$	(28	)	$	(3	)	$	(166	)	Cost of services/sales	$	-		$	(17	)	$	(8	)	$	15		Cost of services/sales

Schlumberger is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain and it is not possible to predict the ultimate disposition of any of these proceedings.

				(Stated in millions)												(Stated in millions)

	Third Quarter 2017						Third Quarter 2016						Third Quarter 2019						Third Quarter 2018
				Income						Income						Income (Loss)						Income (Loss)
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,771		$	311		$	1,667		$	329		$	1,651		$	360		$	1,587		$	361
Drilling		2,120			301			2,021			218			2,470			305			2,429			339
Production		2,876			283			2,104			91			3,153			288			3,249			320
Cameron		1,297			194			1,341			215			1,363			173			1,386			160
Eliminations & other		(159	)		(30	)		(114	)		(38	)		(96	)		(30	)		(147	)		(28	)
Pretax operating income					1,059						815
																	1,096						1,152
Corporate & other ⁽¹⁾					(234	)					(267	)					(231	)					(234	)
Interest income ⁽²⁾					30						24						7						8
Interest expense ⁽³⁾					(129	)					(135	)					(151	)					(139	)
Charges and credits ⁽⁴⁾					(49	)					(237	)					(12,692	)					-
	$	7,905		$	677		$	7,019		$	200		$	8,541		$	(11,971	)	$	8,504		$	787

				(Stated in millions)

	Nine Months 2019						Nine Months 2018
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	4,669		$	959		$	4,602		$	987
Drilling		7,279			913			6,789			921
Production		9,120			740			9,458			853
Cameron		3,949			486			4,175			522
Eliminations & other		(328	)		(126	)		(388	)		(63	)
					2,972						3,220
Corporate & other ⁽¹⁾					(742	)					(699	)
Interest income ⁽²⁾					25						44
Interest expense ⁽³⁾					(433	)					(405	)
Charges and credits ⁽⁴⁾					(12,692	)					(184	)
	$	24,689		$	(10,870	)	$	24,636		$	1,976

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

							(Stated in millions)

	Third Quarter 2019
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	299		$	1,347		$	5		$	1,651
Drilling		553			1,861			56			2,470
Production		1,426			1,726			1			3,153
Cameron		589			772			2			1,363
Other		(17	)		(77	)		(2	)		(96	)
	$	2,850		$	5,629		$	62		$	8,541


	Third Quarter 2018
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	242		$	1,312		$	33		$	1,587
Drilling		601			1,760			68			2,429
Production		1,724			1,524			1			3,249
Cameron		644			713			29			1,386
Other		(22	)		(94	)		(31	)		(147	)
	$	3,189		$	5,215		$	100		$	8,504

				(Stated in millions)

	Nine Months 2019
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	756		$	3,898		$	15		$	4,669
Drilling		1,683			5,435			161			7,279
Production		4,218			4,900			2			9,120
Cameron		1,771			2,146			32			3,949
Other		(39	)		(250	)		(39	)		(328	)
	$	8,389		$	16,129		$	171		$	24,689


	Nine Months 2018
	North						Eliminations
	America			International			& other			Total
Reservoir Characterization	$	732		$	3,729		$	141		$	4,602
Drilling		1,733			4,884			172			6,789
Production		4,919			4,535			4			9,458
Cameron		1,842			2,250			83			4,175
Other		(62	)		(236	)		(90	)		(388	)
	$	9,164		$	15,162		$	310		$	24,636

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.2 billion at both September 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 ~~segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives~~nature of its business, Schlumberger does not have significant backlog. Total backlog was $2.6 billion at September 30, 2019, of which approximately 60% is expected to be recognized as revenue over the next 12 months.

⁽²⁾~~Interest income excludes~~cash collections in excess of revenue was $0.9 billion at both September 30, 2019 and December 31, 2018. Such amounts ~~which~~ are included within Accounts payable and accrued liabilitiesin the ~~segments’ income ($4 million in 2017; $7 million in 2016)~~Consolidated Balance Sheet.

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($13 million in 2017; $14 million in 2016).~~

~~Certain prior period items have been reclassified to conform to the current period presentation.~~

(Stated in millions)

Nine Months 2017

Nine Months 2016

Income

Income

Before

Before

Revenue

Taxes

Revenue

Taxes

Reservoir Characterization
$
5,148

$
891

$
4,972

$
930

Drilling

6,212

832

6,548

760

Production

7,559

614

6,601

379

Cameron

3,791

530

2,865

465

Eliminations & other

(449
)

(101
)

(283
)

(72
)
Pretax operating income

2,766

2,462

Corporate & other ⁽¹⁾

(715
)

(679
)
Interest income ⁽²⁾

82

61

Interest expense ⁽³⁾

(383
)

(391
)
Charges and credits ⁽⁴⁾

(723
)

(3,144
)

$
22,261

$
1,027

$
20,703

$
(1,691
)

⁽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 ($15 million in 2017; $20 million in 2016).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($39 million in 2017; $40 million in 2016).~~

~~Certain prior period items have been reclassified to conform to the current period presentation.~~

Net pension cost (credit) for the Schlumberger pension plans included the following components:

(Stated in millions)	(Stated in millions)																								(Stated in millions)

	Third Quarter												Nine Months												Third Quarter												Nine Months
	2017						2016						2017						2016						2019						2018						2019						2018
	US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l			US			Int'l
Service cost	$	14		$	24		$	16		$	27		$	44		$	71		$	47		$	83		$	14		$	32		$	14		$	35		$	41		$	96		$	44		$	105
Interest cost		44			76			44			78			131			230			133			235			45			82			41			77			136			248			125			229
Expected return on plan assets		(60	)		(135	)		(60	)		(128	)		(181	)		(406	)		(178	)		(391	)		(58	)		(148	)		(61	)		(149	)		(173	)		(446	)		(186	)		(442	)
Amortization of prior service cost		3			24			3			30			9			73			9			91			3			2			3			3			7			6			9			8
Amortization of net loss		10			30			20			20			29			90			60			59			7			16			12			35			23			47			36			105
	$	11		$	19		$	23		$	27		$	32		$	58		$	71		$	77		$	11		$	(16	)	$	9		$	1		$	34		$	(49	)	$	28		$	5

The net periodic benefit credit for the Schlumberger US postretirement medical plan included the following components:

(Stated in millions)	(Stated in millions)												(Stated in millions)

	Third Quarter						Nine Months						Third Quarter						Nine Months
	2017			2016			2017			2016			2019			2018			2019			2018
Service cost	$	7		$	8		$	22		$	23		$	8		$	8		$	23		$	24
Interest cost		11			11			35			35			12			11			36			33
Expected return on plan assets		(15	)		(14	)		(46	)		(43	)		(16	)		(15	)		(49	)		(47	)
Amortization of prior service credit		(7	)		(8	)		(22	)		(24	)		(7	)		(7	)		(21	)		(21	)
	$	(4	)	$	(3	)	$	(11	)	$	(9	)	$	(3	)	$	(3	)	$	(11	)	$	(11	)

(Stated in millions)

Pension and

Currency

Other

Translation

Marketable

Cash Flow

Postretirement

Adjustments

Securities

Hedges

Benefit Plans

Total

Balance, January 1, 2017
$
(2,136
)

$
21

$
(19
)

$
(2,509
)

$
(4,643
)
Other comprehensive gain (loss) before reclassifications

49

(66
)

19

-

2

Amounts reclassified from accumulated other comprehensive loss

-

-

4

179

183

Income taxes

-

-

-

(2
)

(2
)
Net other comprehensive (loss) income

49

(66
)

23

177

183

Balance, September 30, 2017
$
(2,087
)

$
(45
)

$
4

$
(2,332
)

$
(4,460
)

Pension and

Currency

Other

Translation

Marketable

Cash Flow

Postretirement

Adjustments

Securities

Hedges

Benefit Plans

Total

Balance, January 1, 2016
$
(2,053
)

$
-

$
(39
)

$
(2,466
)

$
(4,558
)
Other comprehensive gain (loss) before reclassifications

(26
)

(2
)

(86
)

-

(114
)
Amounts reclassified from accumulated other comprehensive loss

-

-

109

195

304

Income taxes

-

-

-

(20
)

(20
)
Net other comprehensive income

(26
)

(2
)

23

175

170

Balance, September 30, 2016
$
(2,079
)

$
(2
)

$
(16
)

$
(2,291
)

$
(4,388
)

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

				(Stated in millions)												(Stated in millions)

	Third Quarter 2017						Second Quarter 2017						Third Quarter 2019						Second Quarter 2019
				Income						Income						Income (Loss)						Income (Loss)
				Before						Before						Before						Before
	Revenue			Taxes			Revenue			Taxes			Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,771		$	311		$	1,759		$	299		$	1,651		$	360		$	1,558		$	317
Drilling		2,120			301			2,107			302			2,470			305			2,421			300
Production		2,876			283			2,496			221			3,153			288			3,077			235
Cameron		1,297			194			1,265			174			1,363			173			1,328			165
Eliminations & other		(159	)		(30	)		(165	)		(46	)		(96	)		(30	)		(115	)		(49	)
Pretax operating income					1,059						950
																	1,096						968
Corporate & other ⁽¹⁾					(234	)					(242	)					(231	)					(238	)
Interest income ⁽²⁾					30						28						7						9
Interest expense ⁽³⁾					(129	)					(128	)					(151	)					(146	)
Charges and credits⁽⁴⁾					(49	)					(591	)					(12,692	)					-
	$	7,905		$	677		$	7,462		$	17		$	8,541		$	(11,971	)	$	8,269		$	593

Third-quarter revenue of $8.5 billion increased 3% sequentially with North America revenue of $2.8 billion increasing 2%, while international revenue of $5.6 billion increased 3%.

International revenue increased 3% sequentially, led by Europe/CIS/Africa where revenue increased 9% sequentially driven by the peak summer activity campaigns in the ~~segments’ income ($4 million~~Northern Hemisphere as well as the start of new projects in Africa. Sequential international revenue growth was also driven by double-digit growth in Asia. Latin America revenue decreased 9% sequentially on lower activity in Argentina and Mexico. International activity in the fourth quarter will be affected by the usual winter slowdown, particularly in the Northern Hemisphere.

North America revenue improved 2% sequentially, driven by WesternGeco^® multiclient seismic license sales. Land revenue was slightly higher as a modest increase in OneStim^® activity was off-set by softer pricing while land drilling revenue was essentially flat despite the lower rig count. As Schlumberger exited the third quarter, OneStim activity decelerated as frac programs were either deferred or cancelled due to customer budget and cash flow constraints.

The third quarter’s results reflected a macro environment of ~~2017; $6 million~~slowing production growth rate in ~~the second quarter of 2017).~~North American land as operators maintained capital discipline and reduced drilling and frac activity. Year-to-date high single-digit international revenue growth continues to be underpinned by international investment levels. Market uncertainty, however, is weighing on future oil demand outlook in a climate where trade concerns are seen as challenging global economic growth.

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($13 million in the third quarter of 2017; $14 million in the second quarter of 2017).~~

⁽⁴⁾~~Charges and credits are described in detail in Note 2 to the~~ ~~Consolidated Financial Statements~~.Reservoir Characterization

Reservoir Characterization ~~Group~~revenue of $1.7 billion increased 6% sequentially due to peak summer activity campaigns. Growth was led by Wireline international activity, increased Integrated Service Management (ISM) project activity in India and higher WesternGeco multiclient seismic license sales in North America.

Reservoir Characterization ~~Group~~pretax operating margin of 22% was 149 basis points (bps) higher sequentially due to the peak summer campaign for Wireline and stronger WesternGeco multiclient seismic license sales.

Drilling revenue of ~~$1.8~~$2.5 billion increased 1%2% sequentially led by stronger international activity in Russia from the peak summer drilling campaign that mainly benefited Drilling & Measurements. Higher drilling activity in China and Australia also contributed to the sequential growth.

Production revenue of $3.2 billion increased 2% sequentially, primarily ~~due to seasonally~~driven by higher ~~Wireline and Testing~~international activity for Completions in the Far East, Asia & ~~Process activities in the~~Australia, Russia & Central Asia, and ~~Norway & Denmark~~Sub-Sahara Africa GeoMarkets. ~~This increase was partially offset by lower WesternGeco multiclient license sales, which declined $55 million, following~~

Recent production shut-ins in Ecuador due to the ~~strong sales in Mexico during the previous quarter.~~ongoing civil unrest may potentially impact fourth quarter revenue.

~~Pretax~~Production pretax operating margin of ~~18% was 56 basis points (bps) higher~~9% expanded 148 bps sequentially ~~as the increased contribution from high-margin Wireline activities was offset by reduced profitability in WesternGeco due to lower multiclient sales.~~

~~Drilling Group revenue of $2.1 billion increased 1% sequentially~~largely due to improved ~~directional drilling-related~~international margins from higher activity. Additionally, the reduction in depreciation and amortization expense as a result of the third quarter 2019 impairment charges (see Note 2 - Charges & Credits) accounted for just under half of the sequential margin improvement.

Cameron revenue ~~in North America land.~~of $1.4 billion increased 3% sequentially driven by higher international revenue for Surface Systems, OneSubsea, and Drilling Systems.

~~Pretax~~Cameron pretax operating margin of ~~14%~~13% was essentially flat sequentially.

				(Stated in millions)

	Third Quarter 2019						Third Quarter 2018
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	1,651		$	360		$	1,587		$	361
Drilling		2,470			305			2,429			339
Production		3,153			288			3,249			320
Cameron		1,363			173			1,386			160
Eliminations & other		(96	)		(30	)		(147	)		(28	)
					1,096						1,152
Corporate & other ⁽¹⁾					(231	)					(234	)
Interest income ⁽²⁾					7						8
Interest expense ⁽³⁾					(151	)					(139	)
Charges and credits⁽⁴⁾					(12,692	)					-
	$	8,541		$	(11,971	)	$	8,504		$	787

Third-quarter 2019 revenue of ~~$2.9~~$8.5 billion was ~~15% higher sequentially primarily from continued market share gains in the hydraulic fracturing market in~~essentially flat year-on-year as North America ~~land.~~revenue declined 11% while international revenue increased 8%. The international results were underpinned by increased investment levels. In contrast, the North America results reflect a slowing production growth rate on land as operators maintained capital discipline and reduced drilling and frac activity.

~~Pretax~~Third-quarter 2019 revenue of $1.7 billion was 4% higher year-on-year. Revenue in Wireline, Testing, and ISM drove the increase as a result of higher international activity.

Year-on-year, pretax operating margin ~~of 10% increased 97~~decreased 90 bps ~~sequentially due~~ to ~~increased activity and improved pricing on land in North America.~~ 22%.

~~Cameron Group~~Third-quarter 2019 revenue of ~~$1.3~~$2.5 billion increased ~~3% sequentially~~2% year-on-year primarily due to higher ~~product sales~~demand for drilling services, largely in ~~Surface Systems~~the international markets.

Year-on-year, pretax operating margin decreased 161 bps to 12% despite higher revenue as margins were affected by competitive pricing and higher costs associated with a number of integrated contracts internationally.

Third-quarter 2019 revenue of $3.2 billion decreased 3% year-on-year with most of the revenue decrease attributable to lower OneStim activity in North America ~~land.~~as customers reduced spending due to higher cost of capital, lower borrowing capacity and expectation of better returns from their shareholders.

~~Pretax~~Year-on-year, pretax operating margin decreased 72 bps to 9% primarily due to reduced profitability in OneStim in North America.

Third-quarter 2019 revenue of ~~15% increased 116 bps sequentially,~~$1.4 billion decreased 2% year-on-year due ~~mainly~~ to ~~increasing profitability on higher product sales and improved pricing in Surface Systems~~lower revenue for OneSubsea and Valves & ~~Measurement in North America land.~~Process Systems.

(Stated in millions)

Third Quarter 2017

Third Quarter 2016

Income

Income

Before

Before

Revenue

Taxes

Revenue

Taxes

Reservoir Characterization
$
1,771

$
311

$
1,667

$
329

Drilling

2,120

301

2,021

218

Production

2,876

283

2,104

91

Cameron

1,297

194

1,341

215

Eliminations & other

(159
)

(30
)

(114
)

(38
)
Pretax operating income

1,059

815

Corporate & other ⁽¹⁾

(234
)

(267
)
Interest income ⁽²⁾

30

24

Interest expense ⁽³⁾

(129
)

(135
)
Charges and credits⁽⁴⁾

(49
)

(237
)

$
7,905

$
677

$
7,019

$
200

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($4 million in 2017; $7 million in 2016).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($13 million in 2017; $14 million in 2016).~~

⁽⁴⁾~~Charges and credits are described in detail in Note 2 to the~~ ~~Consolidated Financial Statements~~.

~~Certain prior period items have been reclassified to conform to the current period presentation.~~

Third-quarter 2017 revenue of $7.9 billion increased 13% year-on-year. North America land rig count increased more than 90% versus the same period last year, while the international land rig count increased 3%. The North America offshore rig count decreased by 13%, while the international offshore rig count was 4% lower. Driven by the accelerated land activity growth in North America, Production Group revenue increased 37% year-on-year while Reservoir Characterization Group revenue increased by 6% due to increased Wireline activities and Testing & Process projects. Drilling Group revenue increased by 5% and Cameron Group revenue declined 3%.

~~Third-quarter 2017~~Year-on-year, pretax operating margin increased ~~178~~117 bps to 13% due to improved profitability in OneSubsea.

				(Stated in millions)

	Nine Months 2019						Nine Months 2018
				Income (Loss)						Income (Loss)
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	4,669		$	959		$	4,602		$	987
Drilling		7,279			913			6,789			921
Production		9,120			740			9,458			853
Cameron		3,949			486			4,175			522
Eliminations & other		(328	)		(126	)		(388	)		(63	)
					2,972						3,220
Corporate & other ⁽¹⁾					(742	)					(699	)
Interest income ⁽²⁾					25						44
Interest expense ⁽³⁾					(433	)					(405	)
Charges and credits ⁽⁴⁾					(12,692	)					(184	)
	$	24,689		$	(10,870	)	$	24,636		$	1,976

Nine-month 2019 revenue of $24.7 billion was essentially flat year-on-year with North America ~~driven~~revenue decreasing 8% and international revenue increasing 6%. The international results were underpinned by ~~accelerated~~increased investment levels. In contrast, the North America results reflect a slowing production growth rate on land ~~activity growth that benefited the Production~~as operators maintained capital discipline and Drilling Groups. As a result, Production Group pretax operating margin expanded 552 bps to 10%, while the Drilling Group increased 339 bps to 14%. Reservoir Characterization Group pretax operating margin declined 217 bps to 18%reduced drilling and ~~the Cameron Group declined 110 bps to 15%.~~frac activity.

~~Third-quarter 2017~~Nine-month 2019 revenue of ~~$1.8~~$4.7 billion increased 6%1% year-on-year primarily ~~due to higher Wireline activities in North America land and Russia and~~driven by increased ~~Testing & Process revenue on projects in the Middle East & Asia Area.~~ international activity.

Year-on-year, pretax operating margin ~~declined 217~~decreased 91 bps to ~~18% as the increased revenue was offset by higher project costs in Testing & Process.~~

~~Third-quarter~~ ~~2017~~Nine-month 2019 revenue of ~~$2.1~~$7.3 billion increased 5%7% year-on-year primarily due to higher demand for ~~directional~~ drilling ~~technologies on land in North America.~~

~~Year-on-year, pretax operating margin increased 339 bps to 14% primarily due to improved profitability in North America due to accelerated land activity and improved pricing.~~

~~Third-quarter~~ ~~2017 revenue of $2.9 billion increased 37% year-on-year, as a result of the accelerated land activity growth in North America that benefited the pressure pumping business.~~

~~Year-on-year, pretax operating margin increased 552 bps to 10% primarily as a result of improved profitability in North America due to accelerated land activity and improved pricing.~~

~~Third-quarter revenue of $1.3 billion declined 3% year-on-year due to a declining backlog for the long-cycle businesses of Drilling Systems and OneSubsea.~~

~~Pretax operating margin of 15% declined 110 bps primarily due to the decline in high-margin Drilling Systems project volumes.~~

(Stated in millions)

Nine Months 2017

Nine Months 2016

Income

Income

Before

before

Revenue

Taxes

Revenue

Taxes

Reservoir Characterization
$
5,148

$
891

$
4,972

$
930

Drilling

6,212

832

6,548

760

Production

7,559

614

6,601

379

Cameron

3,791

530

2,865

465

Eliminations & other

(449
)

(101
)

(283
)

(72
)
Pretax operating income

2,766

2,462

Corporate & other ⁽¹⁾

(715
)

(679
)
Interest income ⁽²⁾

82

61

Interest expense ⁽³⁾

(383
)

(391
)
Charges and credits ⁽⁴⁾

(723
)

(3,144
)

$
22,261

$
1,027

$
20,703

$
(1,691
)

⁽²⁾~~Interest income excludes amounts which are included in the segments’ income ($15 million in 2017; $20 million in 2016).~~

⁽³⁾~~Interest expense excludes amounts which are included in the segments’ income ($39 million in 2017; $40 million in 2016).~~

⁽⁴⁾~~Charges and credits recorded are described in detail in Note 2 to the~~ ~~Consolidated Financial Statements~~.

~~Certain prior period items have been reclassified to conform to the current period presentation.~~

Nine-month 2017 revenue of $22.3 billion increased 8% year-on-year. This included a full nine months of activity from the acquired Cameron businesses versus two quarters of activity for the same period in 2016. Excluding the impact of the Cameron Group, revenue for the nine months ended September 30, 2017 increased 3% year-on-year. The growth was primarily driven by North America where the land rig count increased 90% versus the same period last year.

~~Nine-month revenue for the Drilling Group declined 5% primarily driven by the 4% decline~~services, largely in the international ~~rig count combined with Schlumberger’s decision in April 2016 to reduce its activities in Venezuela to align operations with cash collections. Production~~

~~Group revenue increased 15% due to the accelerated land pressure pumping activity growth in North America, while the Reservoir Characterization Group revenue improved 4%.~~

~~Nine-month 2017 pretax operating margin was essentially flat at 12%, as improved profitability in North America due to the land activity growth~~markets that benefited ~~the Production~~Drilling & Measurements, M-I SWACO, and Integrated Drilling ~~Groups was offset by margin declines in the Reservoir Characterization and Cameron Groups.~~

~~Nine-month 2017 revenue of $5.1 billion increased 4% year-on-year primarily due to higher WesternGeco and Testing & Process revenue on projects in the Middle East & Asia Area.~~ Services (IDS).

Year-on-year, pretax operating margin decreased ~~140~~103 bps to ~~17% due to reduced profitability in Testing & Process~~12% despite higher revenue as ~~project~~margins were affected by competitive pricing and higher costs ~~increased.~~associated with a number of integrated contracts internationally.

Nine-month ~~2017~~2019 revenue of ~~$6.2~~$9.1 billion decreased 5% year-on-year primarily due to the rig count declines internationally and in offshore North America combined with pricing pressure. Revenue also declined as a result of Schlumberger’s decision in April 2016 to reduce its activities in Venezuela to align operations with cash collections.

Year-on-year, pretax operating margin increased 178 bps to 13% primarily due to improved profitability in North America due to accelerated land activity and improved pricing. This improvement was partially offset by the negative impact of reduced activity in Venezuela.

~~Nine-month~~ ~~2017 revenue of $7.6 billion increased 15%~~4% year-on-year with most of the revenue ~~increase~~decline attributable to ~~the accelerated land~~lower OneStim activity ~~growth~~ in North America ~~that benefited the pressure pumping business which grew 34%. Lower Schlumberger Production Management (SPM) production levels in Ecuador partially offset the revenue increase.~~as customers reduced spending due to higher cost of capital lower, borrowing capacity and expectation of better returns from their shareholders.

Year-on-year, pretax operating margin ~~increased 238~~decreased 90 bps to 8% ~~as a result of improved~~primarily due to reduced profitability in OneStim in North ~~America due to the accelerated land activity and improved pricing. This was partially offset by reduced margins in SPM~~America.

Nine-month 2019 revenue of $3.9 billion decreased 5% year-on-year due to lower ~~production in Ecuador.~~revenue for OneSubsea and Valves & Process Systems.

The ~~Cameron Group contributed nine-month revenue of $3.8 billion. Cameron Group revenue~~decreases in earnings from equity method investments primarily relates to lower income associated with Schlumberger's equity investments in rig- and seismic-related businesses.

Interest income for the first nine months of ~~2016 included only two quarters~~2019 declined $20 million to $31 million as compared to the same period of revenue following the closing of the acquisition in April 2016. Revenue in 2017 was impacted by a declining project backlog, particularly for the long-cycle businesses of Drilling Systems and OneSubsea.

~~Year-on-year, pretax operating margin of 14% decreased 224 bps~~2018 as a result of lower ~~Drilling Systems project volumes.~~short-term investment balances.

Research & engineering and General & administrative expenses, as a percentage of Revenue, for the third quarter and nine months ended September 30, ~~2017~~2019 and ~~2016~~2018 were as follows:

	Third Quarter						Nine Months						Third Quarter						Nine Months
	2017			2016			2017			2016			2019			2018			2019			2018
Research & engineering		2.4	%		3.6	%		2.7	%		3.6	%		2.1	%		2.1	%		2.1	%		2.1	%
General & administrative		1.5	%		1.3	%		1.5	%		1.5	%		1.4	%		1.2	%		1.4	%		1.3	%

~~Research & engineering~~ costs for the third quarter of 2017 and the nine months ended September 30, 2017 have decreased as compared to the same periods in 2016 by $64 million and $155 million, respectively, as a result of cost control measures.

The effective tax rate for the third quarter of ~~2017~~2019 was ~~17.9%~~5%, as compared to ~~5.1%~~16% for the same period of ~~2016.~~2018. The lower effective tax rate was almost entirely due to the charges described in Note 2 to the Consolidated Financial Statements, which were primarily related to non-deductible goodwill.

The effective tax rate for the first nine months of 2019 was 4%, as compared to 18% for the same period of 2018. The charges described in Note 2 to the Consolidated Financial Statements ~~decreased~~ reduced the effective tax rate for the ~~third quarter~~first nine months of ~~2017~~2019 by ~~one percentage point and by 11~~12 percentage points, ~~for~~as the ~~same period of 2016. Excluding the impact of these charges, the effective tax rate increased as a result~~majority of the ~~change in the geographic mix of earnings as Schlumberger generated a greater portion of its pretax earnings in North America during the third quarter of 2017 as compared~~charges related to ~~the same period last year.~~non-deductible goodwill.

~~The effective tax rate for the nine months ended September 30, 2017 was 26.2% as compared to 15.3% for the same period of 2016. The charges described in Note 2 to the~~ ~~Consolidated Financial Statements~~ increased the effective tax rate for the nine months ended September 30, 2017 by eight percentage points and decreased the effective tax rate by one percentage point for the same period of 2016. Excluding the impact of these charges, the effective tax rate increased as a result of the change in the geographic mix of earnings as Schlumberger generated a greater portion of its pretax earnings in North America during the nine months ended September 30, 2017 as compared to the same period last year.

Schlumberger recorded the following charges ~~during~~in connection with the ~~first, second and~~preparation of its third ~~quarters of 2017~~quarter 2019 financial statements, which are fully described in Note 2 to the Consolidated Financial ~~Statements.~~ ~~The following is a summary~~Statements, all of which are classified in Impairment & other in the ~~charges recorded during the first nine months~~Consolidated Statement of ~~2017:~~Income (Loss):

(Stated in millions)

Noncontrolling

Pretax

Tax

Interests

Net

Promissory note fair value adjustment and other
$
510

$
-

$
12

$
498

Merger & integration

213

44

-

169

$
723

$
44

$
12

$
667

	(Stated in millions)

	Pretax		Tax			Net
Goodwill	$	8,828	$	(43	)	$	8,785
Intangible assets		1,085		(248	)		837
North America pressure pumping		1,575		(344	)		1,231
Other North America-related		310		(53	)		257
Argentina		127		-			127
Equity-method investments		231		(12	)		219
Schlumberger Production Management		294		-			294
Other		242		(13	)		229
	$	12,692	$	(713	)	$	11,979

~~During~~As these impairment charges were effective as of August 31, 2019, the third quarter 2019 results include a one month reduction in depreciation and amortization expense of ~~2016, Schlumberger recorded $237~~$27 million. Approximately $21 million of ~~charges associated with~~this amount relates to the ~~acquisition of Cameron. During~~Production segment. The remaining $6 million is reflected in the ~~second quarter of 2016, Schlumberger recorded $2.573 billion of asset impairment and workforce reduction charges and $334 million of charges associated with the acquisition of Cameron.~~ “Corporate & other” line item.

During the second quarter of ~~2016. These~~2018, Schlumberger recorded a $184 million pretax charge ($164 million after-tax) associated with headcount reductions, primarily to further streamline its support cost structure. This charge is classified in Impairments & other in the Consolidated Statement of Income (Loss).

There were no charges ~~which are summarized below, are more fully described in Note 2 to~~or credits recorded during the ~~Consolidated Financial Statements~~.first and third quarters of 2018.

	(Stated in millions)									(Stated in millions)

	Sept. 30,			Sept. 30,			Dec. 31,			Sept. 30,			Sept. 30,			Dec. 31,
Components of Liquidity	2017			2016			2016
Components of Liquidity:										2019			2018			2018
Cash	$	1,690		$	3,441		$	2,929		$	1,183		$	1,493		$	1,433
Short-term investments		3,262			7,315			6,328			1,109			1,361			1,344
Fixed income investments, held to maturity		-			354			238
Short-term borrowings and current portion of long-term debt		(1,289	)		(3,739	)		(3,153	)		(340	)		(3,215	)		(1,407	)
Long-term debt		(15,871	)		(17,538	)		(16,463	)		(16,333	)		(14,159	)		(14,644	)
Net debt ⁽¹⁾	$	(12,208	)	$	(10,167	)	$	(10,121	)	$	(14,381	)	$	(14,520	)	$	(13,274	)

Changes in Liquidity:	Nine Months Ended Sept. 30,						Nine Months Ended Sept. 30,
	2017			2016			2019			2018
Net income (loss)	$	758		$	(1,432	)	$	(10,450	)	$	1,628
Impairment and other charges		723			3,144			12,692			184
Depreciation and amortization ⁽²⁾		2,931			3,078			2,741			2,637
Earnings of equity method investments, less dividends received		(52	)		(51	)		2			(41	)
Pension and other postretirement benefits expense		79			139
Deferred taxes								(833	)		(67	)
Stock-based compensation expense		261			210			329			259
Pension and other postretirement benefits funding		(107	)		(127	)
Increase in working capital ⁽³⁾		(1,473	)		(223	)		(1,340	)		(1,147	)
US federal tax refund		685			-
Other		(393	)		(490	)		38			(71	)
Cash flow from operations		3,412			4,248			3,179			3,382
Capital expenditures		(1,482	)		(1,401	)		(1,230	)		(1,539	)
SPM investments		(492	)		(869	)		(526	)		(719	)
Multiclient seismic data costs capitalized		(223	)		(497	)		(181	)		(63	)
Free cash flow ⁽⁴⁾		1,215			1,481			1,242			1,061
Dividends paid		(2,086	)		(1,951	)		(2,077	)		(2,077	)
Proceeds from employee stock plans		261			344			196			227
Proceeds from exercise of stock options								23			29
Stock repurchase program		(868	)		(662	)		(278	)		(300	)
		(1,478	)		(788	)
Business acquisitions and investments, net of cash acquired plus debt assumed		(382	)		(3,866	)		(21	)		(290	)
Other		(227	)		34			(192	)		(60	)
Increase in net debt		(2,087	)		(4,620	)		(1,107	)		(1,410	)
Net debt, beginning of period		(10,121	)		(5,547	)		(13,274	)		(13,110	)
Net debt, end of period	$	(12,208	)	$	(10,167	)	$	(14,381	)	$	(14,520	)

Key liquidity events during the first nine months of ~~2017~~2019 and ~~2016~~2018 included:

The following table summarizes the activity under ~~these~~the share repurchase ~~programs:~~program:

In October 2019, Schlumberger ~~maintains an allowance for doubtful accounts in order~~and Rockwell Automation closed their previously announced joint venture, Sensia. Rockwell Automation owns 53% of the joint venture and Schlumberger owns 47%. At closing, Rockwell Automation made a $250 million cash payment to record accounts receivable at their net realizable value. Judgment is involved in recording and making adjustments to this reserve. Allowances have been recorded for receivables believed to be uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices. Adjustments to the allowance may be required in future periods depending on how such potential issues are resolved, or if the financial condition of Schlumberger’s customers were to deteriorate resulting in an impairment of their ability to make payments.Schlumberger.

~~During weak economic environments or when there is an extended period of weakness in oil and gas prices,~~ Schlumberger typically experiences delays in the payment of its receivables. However, Schlumberger has not had material write-offs due to uncollectible accounts receivable over the recent industry downturn. Schlumberger operatesgenerates revenue in more than 85120 countries. As a large multinational company with a long history of operating in a cyclical industry, Schlumberger has extensive experience in working with its customers during difficult times to manage its accounts receivable. As of September 30, ~~2017, only~~2019, five of those countries individually accounted for greater than 5% of Schlumberger’s net ~~receivable~~receivables balance, of which only ~~two (the~~the United States ~~and Ecuador)~~ accounted for greater than 10% of such receivables.

~~In April 2016, Schlumberger announced that it would reduce its activity in Venezuela to align operations with cash collections as a result of insufficient payments received in recent quarters.~~ As of September 30, ~~2017, Schlumberger’s net accounts receivable balance in Venezuela was approximately $0.5 billion, which excludes the $0.2 billion of the promissory notes described below.~~

~~Included in~~ ~~Receivables, less allowance for doubtful accounts~~ ~~in the~~ ~~Consolidated Balance Sheet~~ ~~as of September 30, 2017 is approximately $1.1 billion of receivables relating to Ecuador.~~

Schlumberger’s receivables from its primary customers in Venezuela and Ecuador are not in dispute and Schlumberger has not historically had any material write-offs due to uncollectible accounts receivable relating to these customers.

~~During October 2017, Schlumberger reached an agreement to settle its overdue receivables in Ecuador.~~

During the second quarter of 2017, Schlumberger entered into a financing agreement with its primary customer in Venezuela. This agreement resulted in the exchange of $700 million of outstanding accounts receivable for promissory notes with a three-year term that bear interest at the rate of 6.50% per annum. Schlumberger recorded these notes at their estimated fair value on the date of the exchange, which resulted in a pretax and after-tax charge of $460 million. As a result, the cost basis of the promissory note is $240 million. Schlumberger is accounting for the promissory notes as available-for-sale securities reported at fair value in ~~Other Assets, with unrealized gains and losses included as a component of~~ ~~Accumulated other comprehensive loss~~. The fair value of the promissory notes, which is based on management’s estimate of the pricing assumptions that market participants would use, was $184 million at September 30, 2017. If Schlumberger were to conclude that these securities were other-than-temporarily impaired, it would be required to write-down its cost basis to fair value and record a corresponding charge to earnings.

Schlumberger’s judgment regarding the collectibility of its receivables and promissory notes in Venezuela is sensitive to the political and economic conditions in the country. If conditions in Venezuela worsen, Schlumberger may be required to record adjustments to the carrying value of these assets.

Cash flow from operations for the nine months ended September 30, 2017 decreased by approximately $0.8 billion as compared to the same period in 2016. This decrease was primarily driven by delays in collecting certain receivables combined with the working capital effects of the activity growth experienced during the nine months ended September 30, 2017. These effects were partially offset by the collection of a US federal tax refund of approximately $685 million during the third quarter of 2017.

~~On March 24, 2017, Schlumberger and Weatherford announced an agreement to create OneStim~~^SM, a joint venture to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry. Schlumberger and Weatherford will have a 70%/30% ownership of the joint venture, respectively. The transaction is expected to close in the fourth quarter of 2017 and is subject to regulatory approvals and other customary closing conditions. Under the terms of the formation agreement, Schlumberger and Weatherford will contribute all their respective North America land hydraulic fracturing pressure pumping assets, multistage completions, and pump-down perforating businesses. Subject to the terms of the agreement, Schlumberger will also make a cash payment of up to $535 million to Weatherford. Schlumberger will manage the joint venture and consolidate it for financial reporting purposes.

In October 2017, Schlumberger announced that it and Torxen Energy have entered into a definitive agreement for the purchase of the Palliser Block located in Alberta, Canada, from Cenovus Energy, an integrated Canadian oil company, for cash consideration of

~~approximately $1 billion. Under the agreement, which is subject to customary closing conditions, Schlumberger will be the majority non-operating owner and Torxen Energy will be the operator.~~

~~As of September 30, 2017,~~2019, Schlumberger had ~~$5.0~~$2.3 billion of cash and short-term investments on hand. Schlumberger had separate committed debt facility agreements aggregating ~~$6.6~~$6.5 billion ~~with~~that support commercial ~~banks,~~paper programs, of which ~~$4.2~~$4.1 billion was available and ~~unused as of September 30, 2017. The $6.6 billion of committed debt facility agreements included $6.3 billion of committed facilities that support commercial paper programs.~~unused. Schlumberger believes these amounts are sufficient to meet future business requirements for at least the next 12 months.

Borrowings under the commercial paper programs at September 30, ~~2017~~2019 were $2.4 billion.

This third-quarter 2019 Form 10-Q, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts, such as our forecasts or expectations regarding business outlook; our expectations regarding the amount of cash expenditures estimated to be incurred as a result of the impairment charges described in Note 2 to the Consolidated Financial Statements; growth for Schlumberger as a whole and for each of its segments (and for specified products or geographic areas within each segment); oil and natural gas demand and production growth; oil and natural gas prices; improvements in operating procedures and technology, including our transformation program; capital expenditures by Schlumberger and the oil and gas industry; the business strategies of Schlumberger’s customers; ~~the anticipated benefits of the Cameron transaction; the success of Schlumberger’s SPM projects, joint ventures and alliances;~~our effective tax rate; future global economic conditions; and future results of operations. These statements are subject to risks and uncertainties, including, but not limited to, global economic conditions; changes in exploration and production spending by Schlumberger’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world; foreign currency risk; pricing pressure; weather and seasonal factors; operational modifications, delays or cancellations; production declines; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing services and climate-related initiatives; the inability of technology to meet new challenges in exploration; ~~the inability to retain key employees;~~ and other risks and uncertainties detailed in this third-quarter ~~2017~~2019 Form 10-Q and our most recent ~~Form~~Forms 10-K, ~~and Forms~~ 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission. If

one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. Schlumberger disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

For quantitative and qualitative disclosures about market risk affecting Schlumberger, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the Schlumberger Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016.~~2018. Schlumberger’s exposure to market risk has not changed materially since December 31, ~~2016.~~2018.

Schlumberger has carried out an evaluation under the supervision and with the participation of Schlumberger’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of Schlumberger’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, Schlumberger’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that Schlumberger files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Schlumberger’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in Schlumberger’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, Schlumberger’s internal control over financial reporting.

The information with respect to this Item 1 is set forth under Note 11—Contingencies, in the Consolidated Financial Statements.

As of the date of this filing, there have been no material changes from the risk factors ~~previously~~ disclosed in Part 1, Item 1A, of Schlumberger’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016.~~2018.

~~On July 18, 2013, the Board approved a~~As of September 30, 2019, Schlumberger had repurchased $1.0 billion of Schlumberger common stock under its $10 billion share repurchase program for shares of Schlumberger common stock, to be completed at the latest by June 30, 2018. This program was completed during May 2017. On January 21, 2016, the Board approved a new $10 billion share repurchase program for Schlumberger common stock. This new program took effect once the July 18, 2013 program was exhausted.program.

Schlumberger’s common stock repurchase activity for the three months ended September 30, ~~2017~~2019 was as follows:

(Stated in thousands, except per share amounts)

Total number of shares purchased

Average price paid per share

Total number of shares purchased as part of publicly announced programs

Maximum value of shares that may yet be purchased under the programs

July 2017

815.0

$
66.22

815.0

$
9,821,155

August 2017

352.7

$
65.27

352.7

$
9,798,137

September 2017

316.2

$
66.42

316.2

$
9,777,135

1,483.9

$
66.04

1,483.9

	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum value of shares that may yet be purchased under the programs
July 2019		846.7	$	39.69		846.7	$	9,044,087
August 2019		999.7	$	34.46		999.7	$	9,009,642
September 2019		317.6	$	35.35		317.6	$	8,998,416
		2,164.0	$	36.64		2,164.0

Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.

In 2013, Schlumberger completed the wind down of its service operations in ~~Iran during 2013.~~Iran. Prior to this, certain non-US subsidiaries ~~of Schlumberger~~ provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).

Schlumberger’s residual transactions or dealings with the government of Iran induring the third quarter of ~~2017~~2019 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of Schlumberger maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of Schlumberger for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US subsidiary also ~~maintains~~maintained an account at Tejarat for payment of local expenses such as taxes. Schlumberger anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to Schlumberger for prior services rendered in Iran.

At Schlumberger’s 2017 Annual General Meeting of Stockholders, Schlumberger’s stockholders voted on, among other matters, a proposal regarding the frequency of future advisory votes on executive compensation (say on pay). As previously reported, the Board views an annual advisory vote on executive compensation as the most appropriate option, and a majority of the votes cast on the

frequency proposal supported the Board’s recommendation of holding an advisory vote to approve executive compensation on an annual basis. Accordingly, Schlumberger will hold an annual advisory vote to approve executive compensation.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized and in his capacity as Chief Accounting Officer.

~~CURAÇAO~~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,~~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)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	SLB	New York Stock Exchange

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐ ~~(Do not check if a smaller reporting company)~~	Smaller reporting company	☐
Emerging growth company	☐

Class	Outstanding at September 30, ~~2017~~2019
COMMON STOCK, $0.01 PAR VALUE PER SHARE	~~1,385,261,690~~1,384,389,267

		Page
PART I	Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1920

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	27

Item 4.	Controls and Procedures	27

PART II	Other Information

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	2827

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2827

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	3029

	~~Certifications~~

	(Stated in millions)

	Reservoir
	Characterization			Drilling			Production			Cameron			Total
Balance at December 31, 2018	$	4,703		$	10,111		$	4,678		$	5,439		$	24,931
Impairment		(97	)		(3,025	)		(705	)		(5,001	)		(8,828	)
Impact of changes in exchange rates and other		7			3			(1	)		-			9
Balance at September 30, 2019	$	4,613		$	7,089		$	3,972		$	438		$	16,112

			(Stated in millions)

	Fair Value of Derivatives				Consolidated Balance Sheet Classification
	Sept. 30,		Dec. 31,
	2017		2016
Derivative Assets
Derivatives designated as hedges:
Foreign exchange contracts	$	6	$	1	Other current assets

Derivatives not designated as hedges:
Foreign exchange contracts	$	18	$	42	Other current assets
	$	24	$	43
Derivative Liabilities
Derivatives designated as hedges:
Foreign exchange contracts	$	1	$	18	Accounts payable and accrued liabilities
Cross currency swap		44		49	Other Liabilities
	$	45	$	67

Derivatives not designated as hedges:
Foreign exchange contracts	$	38	$	59	Accounts payable and accrued liabilities
	$	83	$	126

				(Stated in millions)

	Nine Months 2017						Nine Months 2016
				Income						Income
				Before						Before
	Revenue			Taxes			Revenue			Taxes
Reservoir Characterization	$	5,148		$	891		$	4,972		$	930
Drilling		6,212			832			6,548			760
Production		7,559			614			6,601			379
Cameron		3,791			530			2,865			465
Eliminations & other		(449	)		(101	)		(283	)		(72	)
Pretax operating income					2,766						2,462
Corporate & other ⁽¹⁾					(715	)					(679	)
Interest income ⁽²⁾					82						61
Interest expense ⁽³⁾					(383	)					(391	)
Charges and credits ⁽⁴⁾					(723	)					(3,144	)
	$	22,261		$	1,027		$	20,703		$	(1,691	)

	(Stated in millions)

										Pension and
	Currency									Other
	Translation			Marketable			Cash Flow			Postretirement
	Adjustments			Securities			Hedges			Benefit Plans			Total
Balance, January 1, 2017	$	(2,136	)	$	21		$	(19	)	$	(2,509	)	$	(4,643	)
Other comprehensive gain (loss) before reclassifications		49			(66	)		19			-			2
Amounts reclassified from accumulated other comprehensive loss		-			-			4			179			183
Income taxes		-			-			-			(2	)		(2	)
Net other comprehensive (loss) income		49			(66	)		23			177			183
Balance, September 30, 2017	$	(2,087	)	$	(45	)	$	4		$	(2,332	)	$	(4,460	)

(Stated in millions, except per share amounts)

	Total cost		Total number		Average price
	of shares		of shares		paid per
	purchased		purchased		share
Nine months ended September 30, 2017	$	868		11.7	$	74.21
Nine months ended September 30, 2016	$	662		9.5	$	69.64

	(Stated in thousands, except per share amounts)

	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced programs		Maximum value of shares that may yet be purchased under the programs
July 2017		815.0	$	66.22		815.0	$	9,821,155
August 2017		352.7	$	65.27		352.7	$	9,798,137
September 2017		316.2	$	66.42		316.2	$	9,777,135
		1,483.9	$	66.04		1,483.9

		Schlumberger Limited (Registrant)
Date:	October ~~25, 2017~~23, 2019	/s/ Howard Guild
		Howard Guild
		Chief Accounting Officer and Duly Authorized Signatory