# UNITED	STATES

# SECURITIES	AND	EXCHANGE	COMMISSION

(Mark	One)

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

For	the	fiscal	year	ended	December	31,	2015

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

Commission	File	Number	1-4601

# Schlumberger	N.V.

# (Schlumberger	Limited)

(Exact	name	of	registrant	as	specified	in	its	charter)

Curaçao

(State	or	other	jurisdiction	of	incorporation	or	organization)

(IRS	Employer	Identification	No.)

(Addresses	of	principal	executive	offices)

(Zip	Codes)

Registrant's	telephone	number	in	the	United	States,	including	area	code,	is:	(713)	513-2000

Securities	registered	pursuant	to	Section	12(b)	of	the	Act:

# Title	of	each	class

Common	Stock,	par	value	$0.01	per	share

Name	of	each	exchange	on	which	registered

New	York	Stock	Exchange

Euronext	Paris

The	London	Stock	Exchange

SIX	Swiss	Exchange

# Securities	registered	pursuant	to	Section	12(g)	of	the	Act:	None

Indicate	by	check	mark	if	the	registrant	is	a	well-known	seasoned	issuer,	as	defined	in	Rule	405	of	the	Securities	Act.	YES þ	NO	¨

Indicate	by	check	mark	if	the	registrant	is	not	required	to	file	reports	pursuant	to	Section	13	or	Section	15(d)	of	the	Act.	YES ¨	NO	þ

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	þ	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	þ	NO	¨

Indicate	by	check	mark	if	disclosure	of	delinquent	filers	pursuant	to	Item	405	of	Regulation	S-K	is	not	contained	herein,	and	will	not	be	contained,	to	the	best	of	the	registrant's	knowledge,	in	definitive proxy	or	information	statements	incorporated	by	reference	in	Part	III	of	this	Form	10-K	or	any	amendment	to	this	Form	10-K.	¨

Indicate	by	check	mark	whether	the	registrant	is	a	large	accelerated	filer,	an	accelerated	filer,	a	non-accelerated	filer,	or	a	smaller	reporting	company.	See	the	definitions	of	"large	accelerated	filer", "accelerated	filer"	and	"smaller	reporting	company"	in	Rule	12b-2	of	the	Exchange	Act.

Large	accelerated	filer 	 þ Accelerated	filer 	 ¨

Non-accelerated	filer 	 ¨ Smaller	reporting	company 	 ¨

Indicate	by	check	mark	whether	the	registrant	is	a	shell	company	(as	defined	in	Rule	12b-2	of	the	Act).	YES	 ¨	NO	þ

As	of	June	30,	2015,	the	aggregate	market	value	of	the	common	stock	of	the	registrant	held	by	non-affiliates	of	the	registrant	was	approximately	$109.0	billion.

# DOCUMENTS	INCORPORATED	BY	REFERENCE

Certain	information	required	to	be	furnished	pursuant	to	Part	III	of	this	Form	10-K	is	set	forth	in,	and	is	hereby	incorporated	by	reference	herein	from,	Schlumberger's	definitive	proxy	statement	for	its 2016	Annual	General	Meeting	of	Stockholders,	to	be	filed	by	Schlumberger	with	the	Securities	and	Exchange	Commission	pursuant	to	Regulation	14A	within	120	days	after	December	31,	2015	(the "2016	Proxy	Statement").

# Table	of	Contents

| Item	1. | Business | 3 |
| :--- | :--- | :--- |
| Item\t1A. | Risk\tFactors | 7 |
| Item\t1B. | Unresolved\tStaff\tComments | 11 |
| Item\t2. | Properties | 11 |
| Item\t3. | Legal\tProceedings | 11 |
| Item\t4. | Mine\tSafety\tDisclosures | 11 |
| PART\tII |  |  |
| Item\t5. | Market\tfor\tSchlumberger's\tCommon\tStock,\tRelated\tStockholder\tMatters\tand\tIssuer\tPurchases\tof\tEquity\tSecurities | 12 |
| Item\t6. | Selected\tFinancial\tData | 14 |
| Item\t7. | Management's\tDiscussion\tand\tAnalysis\tof\tFinancial\tCondition\tand\tResults\tof\tOperations | 15 |
| Item\t7A. | Quantitative\tand\tQualitative\tDisclosures\tAbout\tMarket\tRisk | 29 |
| Item\t8. | Financial\tStatements\tand\tSupplementary\tData | 32 |
| Item\t9. | Changes\tin\tand\tDisagreements\twith\tAccountants\ton\tAccounting\tand\tFinancial\tDisclosure | 66 |
| Item\t9A. | Controls\tand\tProcedures | 66 |
| Item\t9B. | Other\tInformation | 66 |
| PART\tIII |  |  |
| Item\t10. | Directors,\tExecutive\tOfficers\tand\tCorporate\tGovernance\tof\tSchlumberger | 67 |
| Item\t11. | Executive\tCompensation | 67 |
| Item\t12. | Security\tOwnership\tof\tCertain\tBeneficial\tOwners\tand\tManagement\tand\tRelated\tStockholder\tMatters | 67 |
| Item\t13. | Certain\tRelationships\tand\tRelated\tTransactions,\tand\tDirector\tIndependence | 67 |
| Item\t14. | Principal\tAccounting\tFees\tand\tServices | 67 |
| PART\tIV |  |  |
| Item\t15. | Exhibits\tand\tFinancial\tStatement\tSchedules | 68 |
|  | Signatures | 69 |

# PART	I

# Item	1.	Business.

All	references	in	this	report	to	"Registrant,"	"Company,"	"Schlumberger,"	"we"	or	"our"	are	to	Schlumberger	Limited	(Schlumberger	N.V.,	incorporated	in	Curaçao)	and its	consolidated	subsidiaries.

Founded	in	1926,	Schlumberger	is	the	world's	leading	supplier	of	technology,	integrated	project	management	and	information	solutions	to	the	international	oil	and	gas exploration	and	production	industry.	Having	invented	wireline	logging	as	a	technique	for	obtaining	downhole	data	in	oil	and	gas	wells,	Schlumberger	today	provides	the industry's	widest	range	of	products	and	services	from	exploration	through	production.	As	of	December	31,	2015,	the	Company	employed	approximately	95,000	people	of over	140	nationalities	operating	in	approximately	85	countries.	Schlumberger	has	principal	executive	offices	in	Paris,	Houston,	London	and	The	Hague.

On	August	26,	2015,	Schlumberger	and	Cameron	International	Corporations	(Cameron)	jointly	announced	that	they	had	entered	into	a	definitive	merger	agreement	in which	Cameron	will	merge	with	an	indirect	wholly-owned	subsidiary	of	Schlumberger	in	a	stock	and	cash	transaction.	Under	the	terms	of	the	agreement,	Cameron shareholders	will	receive	0.716	shares	of	Schlumberger	common	stock	and	a	cash	payment	of	$14.44	in	exchange	for	each	Cameron	share	of	common	stock	outstanding. Schlumberger	estimates	that	it	will	issue	approximately	137	million	shares	of	its	common	stock	and	pay	cash	of	approximately	$2.8	billion	in	connection	with	this transaction.	In	November	2015,	the	US	Department	of	Justice	cleared	the	proposed	merger	without	any	conditions.		On	December	17,	2015,	Cameron	stockholders	voted to	adopt	the	proposed	merger.		However,	the	transaction	remains	subject	to	certain	regulatory	approvals	and	other	customary	closing	conditions.	It	is	anticipated	that	the closing	of	the	transaction	will	occur	in	the	first	quarter	of	2016.

Cameron	 designs,	 manufactures,	 markets	 and	 services	 equipment	 used	 by	 the	 oil	 and	 gas	 industry	 and	 industrial	 manufacturing	 companies.	 Cameron	 is	 a	 leading international	manufacturer	of	oil	and	gas	pressure	control	and	separation	equipment,	including	valves,	wellheads,	controls,	chokes,	blowout	preventers	and	assembled systems	for	oil	and	gas	drilling,	production	and	transmission	used	in	onshore,	offshore	and	subsea	applications	and	provides	oil	and	gas	separation,	metering	and	flow measurement	equipment.	Cameron	reported	revenue	of	$10.4	billion	for	the	year	ended	December	31,	2014.

Schlumberger	 operates	 in	 each	 of	 the	 major	 oilfield	 service	 markets,	 managing	 its	 business	 through	 three	 Groups:	 Reservoir	 Characterization,	 Drilling	 and Production.		Each	Group	consists	of	a	number	of	technology-based	service	and	product	lines,	or	Technologies.		These	Technologies	cover	the	entire	life	cycle	of	the reservoir	and	correspond	to	a	number	of	markets	in	which	Schlumberger	holds	leading	positions.		The	business	is	also	reported	through	four	geographic	Areas:	North America,	Latin	America,	Europe/CIS/Africa	and	Middle	East	&	Asia.	Within	these	Areas,	a	network	of	GeoMarket*	regions	provides	logistical,	technical	and	commercial coordination.

The	role	of	the	Groups	and	Technologies	is	to	support	Schlumberger	in	providing	the	best	possible	service	to	customers	and	that	it	remains	at	the	forefront	of	technology development.		The	Groups	and	Technologies	are	collectively	responsible	for	driving	excellence	in	execution	throughout	their	businesses,	overseeing	operational	processes, resource	allocation,	personnel	and	delivering	superior	financial	results.	The	GeoMarket	structure	offers	customers	a	single	point	of	contact	at	the	local	level	for	field operations	and	brings	together	geographically	focused	teams	to	meet	local	needs	and	deliver	customized	solutions.	The	Areas	and	GeoMarkets	are	responsible	for	providing the	most	efficient	and	cost	effective	support	possible	to	the	operations.

# The	Groups	are	as	follows:

Reservoir	Characterization	Group	–	Consists	of the	principal	Technologies	 involved	 in	finding	and	defining	hydrocarbon	resources. 	These include	WesternGeco, Wireline,	Testing	Services,	Software	Integrated	Solutions	(SIS)	and	Integrated	Services	Management	(ISM).

· WesternGeco	is	a	leading	geophysical	services	supplier,	providing	comprehensive	worldwide	reservoir	imaging,	monitoring	and	development	services.	 	It provides	increasingly	accurate	measurements	and	images	of	subsurface	geology	and	rock	properties	for	both	customer	proprietary	and	multiclient	surveys. WesternGeco	offers	the	industry's	most	extensive	multiclient	library.

· Wireline	provides	the	information	necessary	to	evaluate	subsurface	formation	rocks	and	fluids	to	plan	and	monitor	well	construction,	and	to	monitor	and evaluate	well	production.		Wireline	offers	both	openhole	and	cased-hole	services	including	wireline	perforating.

· Testing	Services	provides	exploration	and	production	pressure	and	flow-rate	measurement	services	both	at	the	surface	and	downhole.		The	Technology	also provides	tubing-conveyed	perforating	services.

· Software	Integrated	Solutions	sells	proprietary	software	and	provides	consulting,	information	management	and	IT	infrastructure	services	to	customers	in	the	oil and	gas	industry.	SIS	also	offers	expert	consulting	services	for	reservoir

characterization,	field	development	planning	and	production	enhancement,	as	well	as	industry	leading	petrotechnical	data	services	and	training	solutions.

· Integrated	Services	Management	provides	coordination	and	management	of	Schlumberger	services,	products,	and	third	parties	in	projects	around	the	world.	ISM offers	a	certified	Integrated	Services	Project	Manager	as	a	focal	point	of	contact	between	the	project	owner	and	the	various	Schlumberger	services,	ensuring alignment	of	project	objectives.

Drilling	Group	–	Consists	of	the	principal	Technologies	involved	in	the	drilling	and	positioning	of	oil	and	gas	wells	and	comprises	Bits	&	Drilling	Tools,	M-I	SWACO, Drilling	&	Measurements,	Land	Rigs	and	Integrated	Drilling	Services.

· Bits	&	Drilling	Tools	designs,	manufactures	and	markets	roller	cone	and	fixed	cutter	drill	bits	for	all	environments.	The	drill	bits	include	designs	for	premium market	segments	where	faster	penetration	rates	and	 increased	footage	provide	significant	economic	benefits	 in	 lowering	overall	well	costs.	Drilling	 tools includes	a	wide	variety	of	bottom-hole-assembly,	borehole-enlargement	technologies	and	impact	tools,	as	well	as	a	comprehensive	collection	of	tubulars	and tubular	services	for	oil	and	gas	drilling	operations.

· M-I	SWACO	is	the	leading	supplier	of	drilling	fluid	systems	engineered	to	improve	drilling	performance	by	anticipating	fluids-related	problems,	fluid	systems and	specialty	equipment	designed	to	optimize	wellbore	productivity	and	production	technology	solutions	formulated	to	maximize	production	rates.	M-I	SWACO also	provides	engineered	managed	pressure	drilling	and	underbalanced	drilling	solutions,	as	well	as	environmental	services	and	products	to	safely	manage	waste volumes	generated	in	both	drilling	and	production	operations.

· Drilling	&	Measurements	provides	mud	logging	services	for	geological	and	drilling	surveillance,	directional	drilling,	measurement-while-drilling	and	logging- while-drilling	services	for	all	well	profiles	as	well	as	engineering	support.

· Land	Rigs	provides	land	drilling	rigs	and	related	support	services.

· Integrated	Drilling	Services	encompasses	the	services	necessary	to	construct	or	change	the	architecture	(re-entry)	of	wells.	This	service	covers	all	aspects	of well	planning,	well	drilling,	engineering,	supervision,	logistics,	procurement	and	contracting	of	third	parties,	and	drilling	rig	management.

Production	Group	–	Consists	of the	principal	Technologies	 involved	 in	 the	 lifetime	production	of	oil	and	gas	reservoirs	and includes	Well	Services,	Completions, Artificial	Lift,	Well	Intervention,	Water	Services,	Integrated	Production	Services	and	Schlumberger	Production	Management.

· Well	Services	provides	services	used	during	oil	and	gas	well	drilling	and	completion	as	well	as	those	used	to	maintain	optimal	production	throughout	the	life	of a	well.	The	services	include	pressure	pumping,	well	cementing	and	stimulation	operations	as	well	as	intervention	activities.

· Completions	supplies	well	completion	services	and	equipment	that	include	packers,	safety	valves,	sand	control	technology	as	well	as	a	range	of	intelligent	well completions	technology	and	equipment.

· Artificial	Lift	provides	production	equipment	and	optimization	services	using	electrical	submersible	pumps,	gas	lift	equipment,	rod	lift	systems,	progressing cavity	pumps	and	surface	horizontal	pumping	systems.

· Well Intervention	develops	 coiled	 tubing	 equipment	 and services	 and	 provides slickline services for	 downhole	 mechanical	 well intervention, reservoir monitoring	and	downhole	data	acquisition.

· Water	Services	specializes	in	the	development,	management	and	environmental	protection	of	water	resources.

· Integrated	 Production	 Services	encompasses	the	project	scope	necessary	to	abandon,	maintain,	or	increase	the	production	of	single	or	multiple	wells.	All aspects	of	project	planning	addressed	include	well	engineering,	wellsite	supervision,	civil	engineering,	logistics,	procurement,	contracting	of	third	parties,	and workovers.

· Schlumberger	Production	Management	(SPM)	is	a	business	model	for	field	production	projects.	This	model	combines	the	required	services	and	products	of	the Technologies	with	drilling	rig	management,	specialized	engineering	and	project	management	expertise	to	provide	a	complete	solution	to	well	construction	and production	improvement.

SPM	commercial	arrangements	create	alignment	between	Schlumberger	and	the	asset	holder	and/or	the	operator	whereby	Schlumberger	receives	remuneration in	line	with	its	value	creation.		These	projects	are	generally	focused	on	developing	and	co-managing	production	of	Schlumberger's	customers'	assets	under long-term	 agreements.	 	 Schlumberger	 will	 invest	 its	 own	 services	 and	 products,	 and	 in	 some	 cases	 cash,	 into	 the	 field	 development	 activities	 and operations.		Although	in	certain	arrangements	Schlumberger	is	paid	for	a	portion	of	the	services	or	products	it	provides,	generally	Schlumberger	will	not	be	paid at	the	time	of	providing	its	services	or	upon	delivery	of	its	products.		Instead,	Schlumberger	is	generally	compensated	based	upon	cash	flow	generated	or	on	a fee-per-barrel	basis.		This	may	include	certain	arrangements	whereby	Schlumberger	is	only	compensated	based	upon	incremental	production	that	it	helps	deliver above	a	mutually	agreed	baseline.

Schlumberger	also	has	a	40%	equity	ownership	interest	in	OneSubseaTM,	a	joint	venture	with	Cameron.		The	joint	venture	manufactures	and	develops	products, systems	and	services	for	the	subsea	oil	and	gas	market.		Schlumberger's	40%	share	of	the	net	income	of	the	joint	venture	is	reflected	in	the	results	of	the	Production Group.

Supporting	the	Technologies	is	a	global	network	of	research	and	engineering	centers.	Through	this	organization,	Schlumberger	is	committed	to	advanced	technology programs	 that	 enhance	 oilfield	 efficiency,	 lower	 finding	 and	 producing	 costs,	 improve	 productivity,	 maximize	 reserve	 recovery	 and	 increase	 asset	 value	 while accomplishing	these	goals	in	a	safe	and	environmentally	sound	manner.

Schlumberger	primarily	uses	its	own	personnel	to	market	its	offerings.	The	customer	base,	business	risks	and	opportunities	for	growth	are	essentially	uniform	across	all services.	There	is	a	sharing	of	manufacturing	and	engineering	facilities	as	well	as	research	centers,	and	the	labor	force	is	interchangeable.	Technological	innovation,	quality of	service	and	price	differentiation	are	the	principal	methods	of	competition,	which	vary	geographically	with	respect	to	the	different	services	offered.	While	there	are numerous	 competitors,	 both	 large	 and	 small,	 Schlumberger	 believes	 that	 it	 is	 an	 industry	 leader	 in	 providing	 geophysical	 services,	 wireline	 logging,	 well	 testing, exploration	and	production	software,	drilling	and	completion	fluids,	solids	and	waste	management,	coiled-tubing,	drill	bits,	measurement-while-drilling,	logging-while- drilling,	directional	drilling	services	and	mud	logging.	A	large	proportion	of	Schlumberger	offerings	is	non-rig	related;	consequently,	revenue	does	not	necessarily	correlate to	the	rig	count.

# GENERAL

# Intellectual	Property

Schlumberger	owns	and	controls	a	variety	of	intellectual	property,	including	but	not	limited	to	patents,	proprietary	information	and	software	tools	and	applications	that,	in the	aggregate,	are	material	to	Schlumberger's	business.	While	Schlumberger	seeks	and	holds	numerous	patents	covering	various	products	and	processes,	no	particular patent	or	group	of	patents	is	considered	material	to	Schlumberger's	business.

# Seasonality

Seasonal	changes	in	weather	and	significant	weather	events	can	temporarily	affect	the	delivery	of	oilfield	services.	For	example,	the	spring	thaw	in	Canada	and	consequent road	restrictions	can	affect	activity	levels,	while	the	winter	months	in	the	North	Sea,	Russia	and	China	can	produce	severe	weather	conditions	that	typically	result	in temporarily	reduced	levels	of	activity.	In	addition,	hurricanes	and	typhoons	can	disrupt	coastal	and	offshore	operations.	Furthermore,	customer	spending	patterns	for multiclient	data,	software	and	other	oilfield	services	and	products	generally	result	in	higher	activity	in	the	fourth	quarter	of	each	year	as	clients	seek	to	utilize	their	annual budgets.

# Customers	and	Backlog	of	Orders

For	the	year	ended	December	31,	2015,	no	single	customer	exceeded	10%	of	consolidated	revenue.	Other	than	WesternGeco,	Schlumberger	has	no	significant	backlog	due to	the	nature	of	its	businesses.	The	WesternGeco	backlog,	which	is	based	on	signed	contracts	with	customers,	was	$1.1	billion	at	December	31,	2015	($0.7	billion	at December	31,	2014).

# Financial	Information

Financial	information	by	business	segment	and	geographic	area	for	the	years	ended	December	31,	2015,	2014	and	2013	is	provided	in	Note	17	of	the	Consolidated Financial	Statements.

# Executive	Officers	of	Schlumberger

The	following	table	sets	forth,	as	of	January	27,	2016,	the	names	and	ages	of	the	executive	officers	of	Schlumberger,	including	all	offices	and	positions	held	by	each	for	at least	the	past	five	years.

# Available	Information

The	Schlumberger	Internet	website	is	www.slb.com.	Schlumberger	uses	its	Investor	Relations	website,	www.slb.com/ir,	as	a	routine	channel	for	distribution	of	important information,	including	news	releases,	analyst	presentations,	and	financial	information.	Schlumberger	makes	available	free	of	charge	on	or	through	its	Investor	Relations website	at	www.slb.com/ir	access	to	its	Annual	Reports	on	Form	10-K,	Quarterly	Reports	on	Form	10-Q,	Current	Reports	on	Form	8-K,	its	Proxy	Statements	and	Forms	3, 4	and	5	filed	on	behalf	of	directors	and	executive	officers,	and	amendments	to	each	of	those	reports,	as	soon	as	reasonably	practicable	after	such	material	is	filed	with	or furnished	to	the	Securities	and	Exchange	Commission	("SEC").	Alternatively,	you	may	access	these	reports	at	the	SEC's	Internet	website	at	 www.sec.gov.	Copies	are	also available,	without	charge,	from	Schlumberger	Investor	Relations,	5599	San	Felipe,	17th	Floor,	Houston,	Texas	77056.		Unless	expressly	noted,	the	information	on	our website	or	any	other	website	is	not	incorporated	by	reference	in	this	Form	10-K	and	should	not	be	considered	part	of	this	Form	10-K	or	any	other	filing	Schlumberger makes	with	the	SEC.

# Item	1A.	Risk	Factors.

The	following	discussion	of	risk	factors	known	to	us	contains	important	information	for	the	understanding	of	our	"forward-looking	statements,"	which	are	discussed immediately	following	Item	7A.	of	this	Form	10-K	and	elsewhere.	These	risk	factors	should	also	be	read	in	conjunction	with	Item	7.	Management's	Discussion	and Analysis	of	Financial	Condition	and	Results	of	Operations,	and	the	Consolidated	Financial	Statements	and	related	notes	included	in	this	Form	10-K.

We	urge	you	to	consider	carefully	the	risks	described	below,	as	well	as	in	other	reports	and	materials	that	we	file	with	the	SEC	and	the	other	information	included	or incorporated	by	reference	in	this	Form	10-K.	If	any	of	the	risks	described	below	or	elsewhere	in	this	Form	10-K	were	to	materialize,	our	business,	financial	condition, results	of	operations,	cash	flows	or	prospects	could	be	materially	adversely	affected.	In	such	case,	the	trading	price	of	our	common	stock	could	decline	and	you	could	lose part	or	all	of	your	investment.	Additional	risks	and	uncertainties	not	currently	known	to	us	or	that	we	currently	deem	immaterial	may	also	materially	adversely	affect	our financial	condition,	results	of	operations	and	cash	flows.

Demand	for	the	majority	of	our	services	is	substantially	dependent	on	the	levels	of	expenditures	by	the	oil	and	gas	industry.		The	current	significant	oil	and	gas industry	downturn	has	resulted	in	reduced	demand	for	oilfield	services,	which	has	had,	and	may	continue	to	have,	a	significant	adverse	impact	on	our	financial condition,	results	of	operations	and	cash	flows.	If	these	conditions	worsen	or	oil	and	gas	prices	do	not	improve,	further	reductions	in	spending	by	the	oil	and	gas industry	could	have	a	material	adverse	effect	on	our	financial	condition,	results	of	operations	and	cash	flows.

Demand	for	the	majority	of	our	services	depends	substantially	on	the	level	of	expenditures	by	the	oil	and	gas	industry	for	the	exploration,	development	and	production	of oil	and	natural	gas	reserves.	These	expenditures	are	generally	dependent	on	the	industry's	view	of	future	oil	and	natural	gas	prices	and	are	sensitive	to	the	industry's	view of	future	economic	growth	and	the	resulting	impact	on	demand	for	oil	and	natural	gas.	Since	2014,	oil	and	gas	prices	have	declined	significantly,	resulting	in	lower expenditures	by	the	oil	and	gas	industry.		As	a	result,	many	of	our	customers	have	reduced	or	delayed	their	oil	and	gas	exploration	and	production	spending,	reducing	the demand	for	our	services	and	exerting	downward	pressure	on	the	prices	that	we	charge.		These	conditions	have	had,	and	may	continue	to	have,	an	adverse	impact	on	our financial	condition.

Continued	low	oil	and	gas	prices	or	a	further	decline	in	oil	and	gas	prices	could	cause	a	reduction	in	cash	flows	for	our	customers,	which	could	have	significant	adverse effects	on	the	financial	condition	of	some	of	our	customers.	This	could	result	in	project	modifications,	delays	or	cancellations,	general	business	disruptions,	and	delays	in payment	of,	or	nonpayment	of,	amounts	that	are	owed	to	us.	These	effects	could	have	a	material	adverse	effect	on	our	financial	condition,	results	of	operations	and	cash flows.

The	prices	for	oil	and	natural	gas	have	historically	been	volatile	and	can	be	affected	by	a	variety	of	factors,	including:

●demand	for	hydrocarbons,	which	is	affected	by	general	economic	and	business	conditions;

●the	ability	or	willingness	of	the	Organization	of	Petroleum	Exporting	Countries	("OPEC")	to	set	and	maintain	production	levels	for	oil;

●oil	and	gas	production	levels	by	non-OPEC	countries;

●the	level	of	excess	production	capacity;

●political	and	economic	uncertainty	and	geopolitical	unrest;

●the	level	of	worldwide	oil	and	gas	exploration	and	production	activity;

●access	to	potential	resources;

●governmental	policies	and	subsidies;

●the	costs	of	exploring	for,	producing	and	delivering	oil	and	gas;

●technological	advances	affecting	energy	consumption;	and

●weather	conditions.

There	can	be	no	assurance	that	the	demand	or	pricing	for	oil	and	natural	gas	will	follow	historic	patterns	or	recover	in	the	near	term.		Continued	or	worsening	conditions	in the	oil	and	gas	industry	could	further	adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

# A	significant	portion	of	our	revenue is	derived	from	our	non-United	States	operations,	which	exposes	us	to	risks	inherent	in	doing	business	in	each	of	the approximately	85	countries	in	which	we	operate.

Our	non-United	States	operations	accounted	for	approximately	76%	of	our	consolidated	revenue	in	2015,	71%	in	2014	and	73%	in	2013.	Operations	in	countries	other	than the	United	States	are	subject	to	various	risks,	including:

●volatility	in	political,	social	and	economic	conditions	in	certain	areas;

●exposure	to	possible	expropriation	of	our	assets	or	other	governmental	actions;

●social	unrest,	acts	of	terrorism,	war	or	other	armed	conflict;

●confiscatory	taxation	or	other	adverse	tax	policies;

●deprivation	of	contract	rights;

●trade	and	economic	sanctions	or	other	restrictions	imposed	by	the	European	Union,	the	United	States	or	other	countries;

●restrictions	under	the	United	States	Foreign	Corrupt	Practices	Act	or	similar	legislation	in	other	countries;

●restrictions	on	the	repatriation	of	income	or	capital;

●currency	exchange	controls;

●inflation;	and

●currency	exchange	rate	fluctuations	and	devaluations.

We	completed	the	wind	down	of	our	service	operations	in	Iran	during	the	second	quarter	of	2013.	Prior	to	this,	certain	of	our	non-US	subsidiaries	provided	oilfield	services to	the	National	Iranian	Oil	Company	and	certain	of	its	affiliates	("NIOC").	We	have	reclassified	the	results	of	this	business	as	a	discontinued	operation.	All	prior	periods have	been	restated	accordingly.

Our	residual	transactions	or	dealings	with	the	government	of	Iran	during	2015	consisted	of	payments	of	taxes	and	other	typical	governmental	charges.	Certain	of	our	non- US	subsidiaries	maintained	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	an	account	at	Tejarat	for	payment	of	local	expenses	such	as	taxes	and	utilities.	We	anticipate	that	we	will	discontinue	our	dealings	with Saderat	and	Tejarat	following	the	receipt	of	all	amounts	owed	to	us	for	prior	services	rendered	in	Iran.

# Our	failure	to	comply	with	Foreign	Corrupt	Practices	Act	("FCPA")	and	other	laws	could	have	a	negative	impact	on	our	ongoing	operations.

We	are	subject	to	complex	US	and	foreign	laws	and	regulations,	such	as	the	FCPA,	the	U.K.	Bribery	Act	and	various	other	anti-bribery	and	anti-corruption	laws.		We	are also	subject	to	trade	sanction	laws	that	restrict	certain	operations	in	various	countries	or	with	certain	persons.		The	internal	controls,	policies	and	procedures,	and	employee training	and	compliance	programs	we	have	implemented	to	deter	prohibited	practices	may	not	be	effective	in	preventing	employees,	contractors	or	agents	from	violating	or circumventing	such	internal	policies	and	violating	applicable	laws	and	regulations.		Any	determination	that	we	have	violated	or	are	responsible	for	violations	of	anti-bribery or	anti-corruption	laws	could	have	a	material	adverse	effect	on	our	financial	condition.		Violations	of	international	and	US	laws	and	regulations	may	result	in	fines	and penalties,	criminal	sanctions,	administrative	remedies,	restrictions	on	business	conduct	and	could	have	a	material	adverse	effect	on	our	reputation	and	our	business, operating	results	and	financial	condition.

# Environmental	compliance	costs	and	liabilities	could	reduce	our	earnings	and	cash	available	for	operations.

We	are	subject	to	increasingly	stringent	laws	and	regulations	relating	to	importation	and	use	of	hazardous	materials,	radioactive	materials,	chemicals	and	explosives	and	to environmental	protection,	including	laws	and	regulations	governing	air	emissions,	hydraulic	fracturing,	water	discharges	and	waste	management.	We	incur,	and	expect	to continue	to	incur,	capital	and	operating	costs	to	comply	with	environmental	laws	and	regulations.	The	technical	requirements	of	these	laws	and	regulations	are	becoming increasingly	complex,	stringent	and	expensive	to	implement.	These	laws	may	provide	for	"strict	liability"	for	remediation	costs,	damages	to	natural	resources	or	threats	to public	health	and	safety.	Strict	liability	can	render	a	party	liable	for	damages	without	regard	to	negligence	or	fault	on	the	part	of	the	party.	Some	environmental	laws	provide for	joint	and	several	strict	liability	for	remediation	of	spills	and	releases	of	hazardous	substances.

We	use	and	generate	hazardous	substances	and	wastes	in	our	operations.	In	addition,	many	of	our	current	and	former	properties	are,	or	have	been,	used	for	industrial purposes.	Accordingly,	we	could	become	subject	to	material	liabilities	relating	to	the	investigation	and	cleanup	of	potentially	contaminated	properties,	and	to	claims alleging	personal	injury	or	property	damage	as	the	result	of	exposures	to,	or	releases	of,	hazardous	substances.	In	addition,	stricter	enforcement	of	existing	laws	and regulations,	new	laws	and	regulations,	the

discovery	of	previously	unknown	contamination	or	the	imposition	of	new	or	increased	requirements	could	require	us	to	incur	costs	or	become	the	basis	of	new	or	increased liabilities	that	could	reduce	our	earnings	and	our	cash	available	for	operations.

# We	could	be	subject	to	substantial	liability	claims,	which	could	adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

The	technical	complexities	of	our	operations	expose	us	to	a	wide	range	of	significant	health,	safety	and	environmental	risks.	Our	offerings	involve	production-related activities,	 radioactive	 materials,	 chemicals,	 explosives	 and	 other	 equipment	 and	 services	 that	 are	 deployed	 in	 challenging	 exploration,	 development	 and	 production environments.	An	accident	involving	these	services	or	equipment,	or	a	failure	of	a	product,	could	cause	personal	injury,	loss	of	life,	damage	to	or	destruction	of	property, equipment	or	the	environment,	or	suspension	of	operations.	Our	insurance	may	not	protect	us	against	liability	for	some	kinds	of	events,	including	events	involving pollution,	or	against	losses	resulting	from	business	interruption.	Moreover,	we	may	not	be	able	to	maintain	insurance	at	levels	of	risk	coverage	or	policy	limits	that	we deem	adequate.	Any	damages	caused	by	our	services	or	products	that	are	not	covered	by	insurance,	or	are	in	excess	of	policy	limits	or	are	subject	to	substantial	deductibles, could	adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

# Demand	for	our	products	and	services	could	be	reduced	by	existing	and	future	legislation	or	regulations.

Environmental	advocacy	groups	and	regulatory	agencies	in	the	United	States	and	other	countries	have	been	focusing	considerable	attention	on	the	emissions	of	carbon dioxide,	methane	and	other	greenhouse	gasses	and	their	potential	role	in	climate	change.		Existing	or	future	legislation	and	regulations	related	to	greenhouse	gas	emissions and	climate	change,	as	well	as	government	initiatives	to	conserve	energy	or	promote	the	use	of	alternative	energy	sources,	may	significantly	curtail	demand	for	and production	of	fossil	fuels	such	as	oil	and	gas	in	areas	of	the	world	where	our	customers	operate	and	thus	adversely	affect	future	demand	for	our	services.	This	may,	in	turn, adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

Some	international,	national,	state	and	local	governments	and	agencies	have	also	adopted	laws	and	regulations	or	are	evaluating	proposed	legislation	and	regulations	that are	focused	on	the	extraction	of	shale	gas	or	oil	using	hydraulic	fracturing.	Hydraulic	fracturing	is	a	stimulation	treatment	routinely	performed	on	oil	and	gas	wells	in	low- permeability	reservoirs.	Specially	engineered	fluids	are	pumped	at	high	pressure	and	rate	into	the	reservoir	interval	to	be	treated,	causing	cracks	in	the	target	formation. Proppant,	such	as	sand	of	a	particular	size,	is	mixed	with	the	treatment	fluid	to	keep	the	cracks	open	when	the	treatment	is	complete.	Future	hydraulic	fracturing-related legislation	or	regulations	could	limit	or	ban	hydraulic	fracturing,	or	lead	to	operational	delays	and	increased	costs,	and	therefore	reduce	demand	for	our	pressure	pumping services.	If	such	additional	international,	national,	state	or	local	legislation	or	regulations	are	enacted,	it	could	adversely	affect	our	financial	condition,	results	of	operations and	cash	flows.

# If	we	are	unable	to	maintain	technology	leadership,	this	could	adversely	affect	any	competitive	advantage	we	hold.

The	oilfield	service	industry	is	highly	competitive.		Our	ability	to	continually	provide	competitive	technology	and	services	can	impact	our	ability	to	defend,	maintain	or increase	prices	for	our	services,	maintain	market	share,	and	negotiate	acceptable	contract	terms	with	our	customers.		If	we	are	unable	to	continue	to	develop	and	produce competitive	technology	or	deliver	it	to	our	clients	in	a	timely	and	cost-competitive	manner	in	the	various	markets	we	serve,	it	could	adversely	affect	our	financial	condition, results	of	operations	and	cash	flows.

# Limitations	on	our	ability	to	protect	our	intellectual	property	rights,	including	our	trade	secrets,	could	cause	a	loss	in	revenue	and	any	competitive	advantage	we hold.

Some	of	our	products	or	services,	and	the	processes	we	use	to	produce	or	provide	them,	have	been	granted	patent	protection,	have	patent	applications	pending	or	are	trade secrets.	Our	business	may	be	adversely	affected	if	our	patents	are	unenforceable,	the	claims	allowed	under	our	patents	are	not	sufficient	to	protect	our	technology,	our patent	applications	are	denied,	or	our	trade	secrets	are	not	adequately	protected.	Our	competitors	may	be	able	to	develop	technology	independently	that	is	similar	to	ours without	infringing	on	our	patents	or	gaining	access	to	our	trade	secrets,	which	could	adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

# We	may	be	subject	to	litigation	if	another	party	claims	that	we	have	infringed	upon	its	intellectual	property	rights.

The	tools,	techniques,	methodologies,	programs	and	components	we	use	to	provide	our	services	may	infringe	upon	the	intellectual	property	rights	of	others.	Infringement claims	generally	result	in	significant	legal	and	other	costs	and	may	distract	management	from	running	our	core	business.	Royalty	payments	under	licenses	from	third parties,	if	available,	would	increase	our	costs.	Additionally,	developing	non-infringing	technologies	would	increase	our	costs.	If	a	license	were	not	available,	we	might	not be	able	to	continue	providing	a	particular	service	or	product,	which	could	adversely	affect	our	financial	condition,	results	of	operations	and	cash	flows.

# Failure	to	obtain	and	retain	skilled	technical	personnel	could	impede	our	operations.

We	require	highly	skilled	personnel	to	operate	and	provide	technical	services	and	support	for	our	business.	Competition	for	the	personnel	required	for	our	businesses intensifies	as	activity	increases.	In	periods	of	high	utilization	it	may	become	more	difficult	to	find	and	retain	qualified	individuals.	This	could	increase	our	costs	or	have other	adverse	effects	on	our	operations.

# Severe	weather	conditions	may	affect	our	operations.

Our	business	may	be	materially	affected	by	severe	weather	conditions	in	areas	where	we	operate.	This	may	entail	the	evacuation	of	personnel	and	stoppage	of	services.	In addition,	if	particularly	severe	weather	affects	platforms	or	structures,	this	may	result	in	a	suspension	of	activities.	Any	of	these	events	could	adversely	affect	our	financial condition,	results	of	operations	and	cash	flows.

# Cybersecurity	risks	and	threats	could	affect	our	business.

We	rely	heavily	on	information	systems	to	conduct	our	business.		There	can	be	no	assurance	that	the	systems	we	have	designed	to	prevent	or	limit	the	effects	of	cyber incidents	or	attacks	will	be	sufficient	to	prevent	or	detect	such	incidents	or	attacks,	or	to	avoid	a	material	impact	on	our	systems	when	such	incidents	or	attacks	do	occur.		If our	systems	for	protecting	against	cybersecurity	risks	are	circumvented	or	breached,	this	could	result	in	the	loss	of	our	intellectual	property	or	other	proprietary	information, including	customer	data,	and	disruption	of	our	business	operations.

# Our	ability	to	complete	the	proposed	merger	with	Cameron	is	subject	to	various	closing	conditions	and	the	receipt	of	consents	and	approvals	from	government entities	which	may	impose	conditions	that	could	materially	adversely	affect	Cameron	or	Schlumberger	or	cause	the	merger	to	be	abandoned.

The	merger	agreement	contains	certain	closing	conditions,	including	approval	of	the	proposed	merger	by	Cameron	stockholders,	the	absence	of	injunctions	or	other	legal restrictions	and	that	no	material	adverse	effect	shall	have	occurred	with	respect	to	either	company.	On	December	17,	2015,	Cameron	stockholders	voted	to	adopt	our proposed	merger.		Also,	in	November	2015	the	U.S.	Department	of	Justice	cleared	our	proposed	merger	without	any	conditions.		However,	we	will	be	unable	to	complete the	merger	until	consents	and	approvals	are	received	from	the	European	Commission	and	various	other	governmental	entities.		Regulatory	entities	have	broad	discretion	in administering	the	governing	regulations	and	may	impose	certain	requirements	or	obligations	as	conditions	for	their	approval.	The	merger	agreement	may	require	us	to accept	conditions	from	these	regulators	that	could	adversely	affect	the	combined	company.	If	the	regulatory	clearances	are	not	received,	or	they	are	not	received	on	terms that	satisfy	the	conditions	set	forth	in	the	merger	agreement,	then	we	will	not	be	obligated	to	complete	the	merger.	We	can	provide	no	assurance	that	the	various	closing conditions	will	be	satisfied	and	that	the	necessary	approvals	will	be	obtained,	or	that	any	required	conditions	will	not	materially	adversely	affect	the	combined	company following	the	merger.	In	addition,	we	can	provide	no	assurance	that	these	conditions	will	not	result	in	the	abandonment	or	delay	of	the	merger.

# Failure	to	complete	the	proposed	merger	with	Cameron	could	negatively	impact	our	stock	price	and	our	future	business	and	financial	results.

If	the	proposed	merger	is	not	completed,	our	ongoing	business	may	be	adversely	affected	and	we	would	be	subject	to	several	risks,	including	a	decline	in	the	market	price of	our	common	stock,	negative	customer	perception	and	diversion	of	management's	focus	on	pursuing	other	opportunities	that	could	be	beneficial	to	us,	in	each	case, without	realizing	any	of	the	benefits	that	might	have	resulted	had	the	merger	been	completed.

# Multiple	lawsuits	have	been	filed	against	us	and	Cameron	challenging	the	proposed	merger,	and	an	adverse	ruling	in	any	such	lawsuit	may	prevent	the	merger from	being	completed.

After	the	announcement	of	the	proposed	merger,	four	putative	class	action	lawsuits	were	commenced	on	behalf	of	stockholders	of	Cameron	against	Cameron	and	its directors,	as	well	as	against	us	and	Schlumberger	Holding	Corporation	and	Rain	Merger	Sub	(both	of	which	are	indirect	wholly-owned	subsidiaries).			These	lawsuits	were consolidated	for	all	purposes	and	a	consolidated	amended	class	action	complaint	(the	"Consolidated	Complaint")	was	filed.	The	Consolidated	Complaint	seeks	various remedies,	including	enjoining	the	merger	from	being	consummated,	rescission	of	the	merger	to	the	extent	already	implemented	and	the	plaintiffs'	costs	and	fees.		Additional lawsuits	with	similar	allegations	may	be	filed.	While	we	believe	these	lawsuits	are	without	merit	and	we	intend	to	vigorously	defend	against	such	claims,	the	outcome	of any	such	litigation	is	inherently	uncertain.		One	of	the	conditions	to	the	closing	of	the	merger	is	that	no	law,	order,	injunction,	judgment,	decree,	ruling	or	other	similar requirement	shall	be	in	effect	that	prohibits	the	completion	of	the	merger.	Accordingly,	if	any	of	the	plaintiffs	are	successful	in	obtaining	an	injunction	prohibiting	the completion	of	the	merger,	then	that	injunction	may	prevent	the	merger	from	becoming	effective,	or	delay	its	becoming	effective.

# We	may	fail	to	realize	the	anticipated	benefits	of	the	proposed	merger.

The	success	of	the	proposed	merger	will	depend	on,	among	other	things,	our	ability	to	combine	our	business	with	that	of	Cameron	in	a	manner	that	facilitates	growth opportunities	and	realizes	anticipated	synergies.	However,	we	must	successfully	combine	both	businesses	in	a	manner	that	permits	these	benefits	to	be	realized.	In	addition, we	must	achieve	the	anticipated	synergies	without

adversely	affecting	current	revenues	and	investments	in	future	growth.	If	we	are	not	able	to	successfully	achieve	these	objectives,	the	anticipated	benefits	of	the	merger	may not	be	realized	fully,	may	take	longer	to	realize	than	expected,	or	may	never	be	realized.

Potential	issues	and	difficulties	we	may	encounter	in	the	integration	process	include	the	following:

· difficulties	in	managing	the	expanded	operations	of	a	significantly	larger	and	more	complex	combined	company;

· lost	sales	and	customers	as	a	result	of	certain	customers	of	either	or	both	of	the	two	companies	deciding	not	to	do	business	with	the	combined	company,	or deciding	to	decrease	their	level	of	business	in	order	to	reduce	their	reliance	on	a	single	company;

· integrating	personnel	from	the	two	companies	while	maintaining	focus	on	providing	consistent,	high	quality	products	and	customer	service;

· potential	unknown	liabilities	and	unforeseen	increased	expenses,	delays	or	regulatory	conditions	associated	with	the	merger;	and

· performance	shortfalls	at	one	or	both	of	the	two	companies	as	a	result	of	the	diversion	of	management's	attention	caused	by	completing	the	merger	and integrating	the	companies'	operations.

# Business	issues	currently	faced	by	Cameron	may	impact	our	operations.

To	the	extent	that	Cameron	currently	has	or	is	perceived	by	customers	to	have	operational	challenges,	such	as	on-time	performance,	safety	issues	or	workforce	issues,	those challenges	may	raise	concerns	by	our	existing	customers	following	the	merger,	which	may	limit	or	impede	our	future	ability	to	obtain	additional	work	from	those customers.

# Item	1B.	Unresolved	Staff	Comments.

None.

# Item	2.	Properties.

Schlumberger	owns	or	leases	numerous	manufacturing	facilities,	administrative	offices,	service	centers,	research	centers,	data	processing	centers,	mines,	ore,	drilling	fluid and	production	chemical	processing	centers,	sales	offices	and	warehouses	throughout	the	world.	Schlumberger	views	its	principal	manufacturing,	mining	and	processing facilities,	research	centers	and	data	processing	centers	as	its	"principal	owned	or	leased	facilities."

The	following	sets	forth	Schlumberger's	principal	owned	or	leased	facilities:

Beijing,	China;	Clamart,	France;	Fuchinobe,	Japan;	Oslo	and	Stavanger,	Norway;	Singapore;	Abingdon,	Cambridge,	Gatwick	and	Stonehouse,	United	Kingdom;	Moscow, Russia;	and	within	 the	United	States:	Boston,	Massachusetts;	Houston,	Katy,	Rosharon	and	Sugar	Land,	Texas;	Battle	Mountain,	Nevada;	Greybull,	Wyoming	and Florence,	Kentucky.

# Item	3.	Legal	Proceedings.

The	information	with	respect	to	this	Item	3.	Legal	Proceedings	is	set	forth	in	Note	16	of	the	Consolidated	Financial	Statements.

# Item	4.	Mine	Safety	Disclosures.

The	 barite	 and	 bentonite	 mining	 operations	 of	 M-I	 LLC,	 an	 indirect	 wholly-owned	 subsidiary,	 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	Form	10-K.

# PART	II

# Item	5.	Market	for	Schlumberger's	Common	Stock,	Related	Stockholder	Matters	and	Issuer	Purchases	of	Equity	Securities.

As	of	December	31,	2015,	there	were	23,831	stockholders	of	record.	The	principal	United	States	market	for	Schlumberger's	common	stock	is	the	New	York	Stock Exchange	("NYSE"),	where	it	is	traded	under	the	symbol	"SLB,"	although	it	is	traded	on	other	exchanges	in	and	outside	the	United	States,	including	the	Euronext	Paris, the	London	Stock	Exchange	and	the	SIX	Swiss	Exchange.

# Common	Stock,	Market	Prices	and	Dividends	Declared	per	Share

Quarterly	high	and	low	prices	for	Schlumberger's	common	stock	as	reported	by	the	NYSE	(composite	transactions),	together	with	dividends	declared	per	share	in	each quarter	of	2015	and	2014,	were	as	follows:

|  | Price	Range<br>High | Low | Dividends<br>Declared |
| :--- | :--- | :--- | :--- |
| 2015 |  |  |  |
| QUARTERS |  |  |  |
| First | $89.00 | $75.60 | $0.50 |
| Second | 95.13 | 83.60 | 0.50 |
| Third | 86.69 | 67.75 | 0.50 |
| Fourth | 82.43 | 66.57 | 0.50 |
| 2014 |  |  |  |
| QUARTERS |  |  |  |
| First | $98.45 | $85.77 | $0.40 |
| Second | 118.13 | 96.66 | 0.40 |
| Third | 118.76 | 100.30 | 0.40 |
| Fourth | 102.40 | 78.47 | 0.40 |

There	are	no	legal	restrictions	on	the	payment	of	dividends	or	ownership	or	voting	of	such	shares,	except	as	to	shares	held	as	treasury	stock.	Under	current	legislation, stockholders	are	not	subject	to	any	Curaçao	withholding	or	other	Curaçao	taxes	attributable	to	the	ownership	of	such	shares.

The	following	graph	compares	the	cumulative	total	stockholder	return	on	Schlumberger	common	stock,	assuming	reinvestment	of	dividends	on	the	last	day	of	the	month	of payment	into	common	stock	of	Schlumberger,	with	the	cumulative	total	return	on	the	Standard	&	Poor's	500	Index	(S&P	500	Index)	and	the	cumulative	total	return	on	the Philadelphia	Oil	Service	Index	(OSX)	over	the	five-year	period	ended	December	31,	2015.	The	stockholder	return	set	forth	below	is	not	necessarily	indicative	of	future performance.	The	 following	 graph	 and	 related	 information	 shall	 not	 be	 deemed	 "soliciting	 material"	 or	 to	 be	 "filed"	 with	 the	 SEC,	 nor	 shall	 such	 information	 be incorporated	by	reference	into	any	future	filing	under	the	Securities	Act	of	1933	or	the	Securities	Exchange	Act	of	1934,	except	to	the	extent	that	Schlumberger	specifically incorporates	it	by	reference	into	such	filing.

# Comparison	of	five-year	cumulative	total	return	among

# Schlumberger	common	stock,	the	S&P	500	Index	and	the

# Philadelphia	Oil	Service	Index	(OSX)

Assumes	$100	invested	on	December	31,	2010	in	Schlumberger	common	stock,	in	the	S&P	500	Index	and	in	the	Philadelphia	Oil	Service	Index	(OSX)	and	reinvestment	of dividends	on	the	last	day	of	the	month	of	payment.

# Share	Repurchases

On	July	18,	2013,	the	Schlumberger	Board	of	Directors	(the	"Board")	approved	a	$10	billion	share	repurchase	program	for	Schlumberger	common	stock,	to	be	completed at	the	latest	by	June	30,	2018.

Schlumberger's	common	stock	repurchase	program	activity	for	the	three	months	ended	December	31,	2015	was	as	follows:

(Stated	in	thousands,	except	per	share	amounts)

|  | Total	number	of<br>shares	purchased | Average	price<br>paid	per	share | shares	purchased<br>as	part	of	publicly<br>announced<br>program | Maximum	value	of<br>shares	that	may<br>yet	be	purchased<br>under	the	program |
| :--- | :--- | :--- | :--- | :--- |
| October\t1\tthrough\tOctober\t31,\t2015 | 2,398.0 | $74.00 | 2,398.0 | $1,644,290 |
| November\t1\tthrough\tNovember\t30,\t2015 | 1,525.7 | $78.44 | 1,525.7 | $1,524,623 |
| December\t1\tthrough\tDecember\t31,\t2015 | 1,473.7 | $68.92 | 1,473.7 | $1,423,058 |
|  | 5,397.4 | $73.86 | 5,397.4 |  |

In	 connection	 with	 the	 exercise	 of	 stock	 options	 under	 Schlumberger's	 stock	 incentive	 plans,	 Schlumberger	 routinely	 receives	 shares	 of	 its	 common	 stock	 from optionholders	in	consideration	of	the	exercise	price	of	the	stock	options.	Schlumberger	does	not	view	these	transactions	as	requiring	disclosure	under	this	Item	5	as	the number	of	shares	of	Schlumberger	common	stock	received	from	optionholders	is	not	material.

On	January	21,	2016,	the	Board	approved	a	new	$10	billion	share	repurchase	program	for	Schlumberger	common	stock.		This	new	program	will	take	effect	once	the remaining	$1.4	billion	authorized	to	be	repurchased	under	the	July	18,	2013	program	is	exhausted.

# Unregistered	Sales	of	Equity	Securities

# Item	6.	Selected	Financial	Data.

The	following	selected	consolidated	financial	data	should	be	read	in	conjunction	with	both	"Item	7.	Management's	Discussion	and	Analysis	of	Financial	Condition	and Results	of	Operations"	and	"Item	8.	Financial	Statements	and	Supplementary	Data"	of	this	Form	10-K	in	order	to	understand	factors,	such	as	business	combinations	and charges	and	credits,	which	may	affect	the	comparability	of	the	Selected	Financial	Data:

(Stated	in	millions,	except	per	share	amounts)

|  |  |  | Year	Ended	December	31 |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | 2015 | 2014 | 2013 | 2012 | 2011 |
| Revenue | $35,475 | \t$48,580 | \t$45,266 | \t$41,731 | \t$36,579 |
| Income\tfrom\tcontinuing\toperations | $2,072 | \t$5,643 | \t$6,801 | \t$5,230 | \t$4,516 |
| Diluted\tearnings\tper\tshare\tfrom\tcontinuing\toperations | $1.63 | \t$4.31 | \t$5.10 | \t$3.91 | \t$3.32 |
| Working\tcapital | $12,791 | \t$10,518 | \t$12,700 | \t$11,788 | \t$10,001 |
| Total\tassets | $68,005 | \t$66,904 | \t$67,100 | \t$61,547 | \t$55,201 |
| Net\tdebt\t(1) | $5,547 | \t$5,387 | \t$4,443 | \t$5,111 | \t$4,850 |
| Long-term\tdebt | $14,442 | \t$10,565 | \t$10,393 | \t$9,509 | \t$8,556 |
| Schlumberger\tstockholders'\tequity | $35,633 | \t$37,850 | \t$39,469 | \t$34,751 | \t$31,263 |
| Cash\tdividends\tdeclared\tper\tshare | $2.00 | $1.60 | $1.25 | $1.10 | $1.00 |

(1) "Net	debt"	represents	gross	debt	less	cash,	short-term	investments	and	fixed	income	investments,	held	to	maturity.	Management	believes	that	Net	debt	provides useful	information	regarding	the	level	of	Schlumberger	indebtedness	by	reflecting	cash	and	investments	that	could	be	used	to	repay	debt.

# Item	7.	Management's	Discussion	and	Analysis	of	Financial	Condition	and	Results	of	Operations.

The	 following	 discussion	 and	 analysis	 contains	 forward-looking	 statements,	 including,	 without	 limitation,	 statements	 relating	 to	 our	 plans,	 strategies,	 objectives, expectations,	intentions	and	resources.	Such	forward-looking	statements	should	be	read	in	conjunction	with	our	disclosures	under	"Item	1A.	Risk	Factors"	of	this	Form	10-

# Executive	Overview

Schlumberger	revenue	of	$35.5	billion	in	2015	represented	a	drop	of	27%	from	2014	due	to	customer	spending	falling	as	commodity	prices	weakened	during	the	year. Revenue	in	North	America	decreased	39%,	driven	by	a	land	rig	count	that	ended	the	year	68%	lower	than	the	peak	seen	in	2014	as	well	as	by	pricing	pressure	that intensified	during	the	year.	North	American	offshore	revenue	fell	more	modestly	as	rigs	in	the	US	Gulf	of	Mexico	shifted	from	exploration	to	development	work,	although the	overall	market	in	North	America	was	the	weakest	for	oilfield	services	since	1986.	Internationally,	revenue	declined	21%	as	customers	cut	budgets	and	pressured	service pricing,	with	these	effects	often	exacerbated	by	activity	disruptions,	project	delays	and	cancellations.

In	the	oil	markets,	the	negative	sentiments	that	had	dominated	the	year	accelerated	during	the	fourth	quarter	after	some	early	optimism	earlier	in	the	summer.	The	impact	of OPEC	lifting	production	targets	to	produce	at	maximum	rates,	combined	with	production	in	North	America	from	unconventional	resources	declining	slower	than	expected following	the	April	peak,	has	led	to	supply	continuing	to	exceed	increasing	demand.	As	a	result,	commodity	prices	fell	dramatically,	with	oil	dropping	to	a	12-year	low	by the	end	of	the	year.	These	weaker	fundamentals	drove	industry	exploration	and	production	(E&P)	capital	investment	significantly	lower,	resulting	in	the	first	two-year sequential	decline	in	spend	in	30	years.

In	the	natural	gas	markets,	US	production	grew	to	a	record	of	75	Bcf/d,	as	new	fields	in	the	US	Gulf	of	Mexico	were	brought	into	production	and	supplies	from unconventional	shale	gas	and	tight	oil	reservoirs	continued	to	grow.	This	trend	is	expected	to	continue	with	newly	completed	pipeline	capacity	in	the	northeast	United States	bringing	new	supplies.	A	relatively	mild	start	to	the	winter	together	with	North	American	gas	storage	levels	well	above	the	five-year	average	will	keep	natural	gas prices	low.	Internationally,	European	gas	demand	growth	returned	to	positive	territory.		Despite	this	increased	demand,	storage	levels	are	at	record	highs	due	to	ample supply	from	the	North	Sea	and	Russia,	as	well	as	from	liquefied	natural	gas	(LNG).	Demand	rebounded	in	Asia	but	remained	in	a	downward	trend	overall.	As	LNG exports	from	Australia	grow,	the	region	is	likely	to	remain	oversupplied	with	low	natural	gas	prices	persisting.

Schlumberger's	financial	performance	in	2015	was	significantly	impacted	by	the	large	decrease	in	land	activity,	particularly	in	the	US,	where	the	year-end	land	rig	count was	less	than	700	rigs.	This	created	massive	overcapacity	in	the	land	market	that	impacted	pricing	levels	across	a	broad	range	of	oilfield	services.	Internationally,	revenue in	the	Europe,	CIS	&	Africa	Area	fell	by	26%	as	a	result	of	the	weakening	Russian	ruble,	and	due	to	a	drop	in	exploration	activities	in	the	United	Kingdom	and	Norway GeoMarkets.	In	Latin	America,	revenue	declined	22%	due	to	decreased	activity	in	Mexico,	Brazil,	and	Colombia	as	a	result	of	sustained	budget	cuts	that	led	to	rig	count reductions.	Middle	East	&	Asia	Area	revenue	decreased	17%	on	lower	activity	in	the	Asia	Pacific	region,	particularly	in	Australia,	although	this	was	partially	offset	by robust	activity	in	the	Gulf	Cooperation	Council	countries,	particularly	Saudi	Arabia,	Kuwait,	and	Oman.

Among	the	Groups,	Reservoir	Characterization	performance	was	negatively	impacted	by	sustained	cuts	in	exploration	spending,	currency	weaknesses,	and	operational disruptions	from	exhausted	customer	budgets	that	affected	Wireline	activities,	particularly	in	the	Europe,	CIS	&	Africa	and	Middle	East	&	Asia	Areas.	In	the	Drilling Group,	the	drop	in	drilling	activity	coupled	with	persistent	pricing	pressure,	currency	weaknesses	and	operational	disruptions	lowered	Drilling	&	Measurements	and	M-I SWACO	revenues	across	all	geographies	but	most	significantly	in	the	Europe,	CIS	&	Africa	Area.	Production	Group	performance	was	mainly	affected	by	the	fall	in	North American	land	activity	as	exhausted	customer	budgets	led	to	a	continued	decline	in	rig	count	and	increased	pricing	pressure.

In	this	uncertain	environment,	Schlumberger	continues	to	focus	on	what	it	can	control.		Throughout	the	year,	Schlumberger	took	a	number	of	actions	to	streamline	and resize	its	organization	as	it	continues	to	navigate	the	current	market	downturn.	In	spite	of	current	conditions,	Schlumberger	remains	constructive	in	its	view	of	the	market outlook	in	the	medium	term,	and	continues	to	believe	that	the	underlying	balance	of	supply	and	demand	will	tighten,	driven	by	growth	in	demand,	weakening	supply	as	the massive	E&P	investment	cuts	take	effect,	and	by	the	size	of	the	annual	supply	replacement	challenge.

# Fourth	Quarter	2015	Results

# Product	Groups

|  | Fourth	Quarter	2015 |  | Third	Quarter	2015 |  |
| :--- | :--- | :--- | :--- | :--- |
|  | Income | Income | Income | Income |
|  | before | before | before | before |
|  | Revenue | Taxes | Revenue | Taxes |
| Reservoir\tCharacterization | $2,154 | \t$520 | \t$2,321 | \t$614 |
| Drilling | 2,953 | 494 | 3,219 | 594 |
| Production | 2,671 | 303 | 2,974 | 330 |
| Eliminations\t&amp;\tother | (34) | (29) | (42) | (17) |
| Pretax\toperating\tincome | 1,288 | 1,288 | 1,521 | 1,521 |
| Corporate\t&amp;\tother\t(1) | (179) | (179) | (198) | (198) |
| Interest\tincome\t(2) |  | 8 |  | 8 |
| Interest\texpense\t(3) |  | (83) | (78) | (78) |
| Charges\t&amp;\tcredits\t(4) |  | (2,136) |  | - |
|  | $7,744 | \t$(1,102) | \t$8,472 | \t$1,253 |

# Geographic	Areas

|  | Fourth	Quarter	2015 |  | Third	Quarter	2015 |  |
| :--- | :--- | :--- | :--- | :--- |
|  | Income | Income | Income | Income |
|  | before | before | before | before |
|  | Revenue | Taxes | Revenue | Taxes |
| North\tAmerica | $1,955 | \t$139 | \t$2,273 | \t$202 |
| Latin\tAmerica | 1,407 | 324 | 1,422 | 295 |
| Europe/CIS/Africa | 2,059 | 428 | 2,274 | 505 |
| Middle\tEast\t&amp;\tAsia | 2,248 | 507 | 2,372 | 641 |
| Eliminations\t&amp;\tother | 75 | (110) | 131 | (122) |
| Pretax\toperating\tincome | 1,288 | 1,288 | 1,521 | 1,521 |
| Corporate\t&amp;\tother\t(1) | (179) | (179) | (198) | (198) |
| Interest\tincome\t(2) |  | 8 |  | 8 |
| Interest\texpense\t(3) |  | (83) | (78) | (78) |
| Charges\t&amp;\tcredits\t(4) |  | (2,136) |  | - |
|  | $7,744 | \t$(1,102) | \t$8,472 | \t$1,253 |

(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) Excludes	interest	income	included	in	the	segments'	income	(fourth	quarter	2015:	$6	million;	third	quarter	2015:	$6	million).

(3) Excludes	interest	expense	included	in	the	segments'	income	(fourth	quarter	2015:	$8	million;	third	quarter	2015:	$8	million).

(4) Charges	and	credits	are	described	in	detail	in	Note	3	to	the	Consolidated	Financial	Statements.

Fourth-quarter	revenue	of	$7.7	billion	decreased	$728	million,	or	9%,	sequentially	with	International	revenue	of	$5.7	billion	decreasing	$354	million,	or	6%,	and	North America	revenue	decreasing	$318	million,	or	14%.		Pricing	pressure	accounted	for	more	than	one-third	of	the	overall	sequential	revenue	decline,	with	the	remainder attributable	to	a	combination	of	lower	activity	levels	and	currency	impacts.

Internationally,	fourth-quarter	revenue	decreased	6%	sequentially	due	to	the	combination	of	customer	budget	cuts,	the	start	of	the	seasonal	winter	slow-down,	persistent pricing	pressure,	currency	weakness	and	the	near	absence	of	the	usual	year-end	product,	software,	and	multiclient	seismic	license	sales.		Europe/CIS/Africa	Area	revenue decreased	9%	sequentially	mainly	in	Russia	and

Central	Asia	due	to	weakness	in	the	Russian	ruble,	the	start	of	the	seasonal	winter	slow-down	in	Russia	as	summer	projects	wound	down,	and	activity	reductions	in	the Caspian	region.		Solid	activity	in	the	Nigeria	&	Gulf	of	Guinea	and	North	Africa	GeoMarkets	was	offset	largely	by	lower	activity	in	the	UK,	Central	&	West	Africa	and Angola	GeoMarkets	as	rig	count	declined	and	projects	ended.		Middle	East	&	Asia	Area	revenue	declined	5%	sequentially	mainly	due	to	lower	activity	in	Australia	and	the Asia-Pacific	region	as	a	result	of	customer	budget	cuts	and	project	completions.		Revenue	from	the	Middle	East	GeoMarkets	was	also	lower	as	solid	activity	in	Kuwait	and Iraq	was	more	than	offset	by	reductions	in	the	rest	of	the	region	due	to	the	effects	of	service	pricing	concessions,	project	cancellations,	delayed	start-ups	of	new	projects, and	abrupt	activity	disruptions	as	budgets	were	exhausted.	Latin	America	Area	revenue	decreased	1%	sequentially,	mainly	on	significantly	lower	activity	in	the	Colombia	& Peru,	Brazil,	and	Argentina,	Bolivia	&	Chile	GeoMarkets	due	to	customer	budget	cuts	and	currency	weakness.		These	effects	were	largely	offset	by	multiclient	seismic license	sales	in	Mexico.

North	America	fourth-quarter	revenue	declined	14%	sequentially,	largely	mirroring	the	US	land	rig	count	decline	of	15%	as	customer	cash	flows	diminished	and	E&P budgets	were	exhausted.	Land	revenue	fell	18%	from	lower	activity	and	persistent	pricing	pressure,	while	offshore	revenue	decreased	4%.	The	usual	year-end	surge	in multiclient	seismic	license	sales	was	largely	muted.

Fourth-quarter	pretax	operating	income	of	$1.3	billion	decreased	$233	million,	or	15%,	sequentially	with	International	pretax	operating	income	of	$1.26	billion	decreasing 13%,	and	North	America	pretax	operating	income	decreasing	31%.

Fourth-quarter	2015	pretax	operating	margin	of	16.6%	decreased	132	basis	points	(bps)	sequentially.		Internationally,	pretax	operating	margin	of	22.0%	decreased	170	bps sequentially	as	pricing	pressure	across	the	Areas	was	partially	offset	by	streamlining	the	cost	and	resource	base.		In	addition,	project	cancellations,	delayed	start-ups	of	new projects,	and	abrupt	activity	disruptions	all	contributed	to	the	sequential	reduction	in	pretax	operating	margin,	particularly	in	the	Middle	East	&	Asia	Area.		Middle	East	& Asia	pretax	operating	margin	decreased	448	bps	to	22.5%,	Europe/CIS/Africa	fell	138	bps	to	20.8%,	while	Latin	America	increased	229	bps	to	23.0%	mainly	due	to	strong margins	from	multiclient	seismic	license	sales	in	Mexico	and	Central	America.		North	America	pretax	operating	margin	declined	175	bps	7.1%	as	a	result	of	pricing pressure	that	impacted	all	services	and	products.

# Reservoir	Characterization	Group

Fourth-quarter	revenue	of	$2.2	billion	declined	7%	sequentially,	primarily	due	to	sustained	cuts	in	exploration	spending,	the	start	of	the	seasonal	winter	slow-down, currency	weakness,	and	operational	disruptions	from	exhausted	customer	budgets	that	impacted	Wireline	activities,	particularly	in	the	Europe/CIS/Africa	and	Middle	East &	Asia	Areas.		This	decline	was	partially	offset	by	marine	seismic	surveys	and	multiclient	seismic	license	sales	in	Mexico.		Year-end	product	and	software	sales	were largely	muted.

Pretax	operating	margin	of	24.2%	declined	230	bps	sequentially	as	the	contribution	of	high-margin	multiclient	seismic	sales	was	more	than	offset	by	a	decline	in	high- margin	Wireline	services.

# Drilling	Group

Fourth-quarter	revenue	of	$3.0	billion	decreased	8%	sequentially,	primarily	from	a	drop	in	drilling	activity,	persistent	pricing	pressure,	the	start	of	the	seasonal	winter	slow- down,	currency	weakness,	and	operational	disruptions	from	exhausted	customer	budgets	that	impacted	Drilling	&	Measurements	and	M-I	SWACO	revenues,	mainly	in	the Europe/CIS/Africa	and	Middle	East	&	Asia	Areas.

Pretax	operating	margin	of	16.7%	contracted	173	bps	sequentially	as	revenue	declined	on	pricing	weakness	and	abrupt	operational	disruptions.

# Production	Group

Fourth-quarter	revenue	of	$2.7	billion	decreased	10%	sequentially	with	80%	of	the	decrease	attributable	to	a	further	decline	in	North	American	land	activity	as	exhausted customer	budgets	led	to	a	further	decline	in	rig	count	and	increased	pricing	pressure.	Market	pricing	for	pressure	pumping	services	dropped	to	even	more	unsustainable levels.

Pretax	operating	margin	of	11.3%	increased	24	bps	sequentially	despite	lower	activity	and	increasing	pricing	weakness	in	pressure	pumping	services.		The	decline	in pressure	pumping	margin	was	largely	offset	by	the	combination	of	accretive	margin	contributions	from	Schlumberger	Production	Management	projects	in	Latin	America and	higher	net	earnings	from	the	OneSubsea	joint	venture.

# Full-Year	2015	Results

(Stated	in	millions)

|  |  | Income |  | Income |
| :--- | :--- | :--- | :--- | :--- |
|  |  | before |  | before |
|  | Revenue | Taxes | Revenue | Taxes |
| Reservoir\tCharacterization | $9,501 | \t$2,450 | \t$12,905 | \t$3,708 |
| Drilling | 13,563 | 2,538 | 18,128 | 3,805 |
| Production | 12,548 | 1,585 | 17,763 | 3,193 |
| Eliminations\t&amp;\tother | (137) | (63) | (216) | (130) |
| Pretax\toperating\tincome |  | 6,510 |  | 10,576 |
| Corporate\t&amp;\tother\t(1) |  | (768) |  | (848) |
| Interest\tincome\t(2) |  | 30 |  | 31 |
| Interest\texpense\t(3) |  | (316) |  | (347) |
| Charges\t&amp;\tcredits\t(4) |  | (2,575) |  | (1,773) |
|  | $35,475 | \t$2,881 | \t$48,580 | \t$7,639 |

|  |  | Income |  | Income |
| :--- | :--- | :--- | :--- | :--- |
|  |  | before |  | before |
|  | Revenue | Taxes | Revenue | Taxes |
| North\tAmerica | $9,811 | \t$999 | \t$16,151 | \t$3,057 |
| Latin\tAmerica | 6,014 | 1,315 | 7,699 | 1,639 |
| Europe/CIS/Africa | 9,284 | 1,979 | 12,515 | 2,765 |
| Middle\tEast\t&amp;\tAsia | 9,898 | 2,661 | 11,875 | 3,273 |
| Eliminations\t&amp;\tother | 468 | (444) | 340 | (158) |
| Pretax\toperating\tincome |  | 6,510 |  | 10,576 |
| Corporate\t&amp;\tother\t(1) |  | (768) |  | (848) |
| Interest\tincome\t(2) |  | 30 |  | 31 |
| Interest\texpense\t(3) |  | (316) |  | (347) |
| Charges\t&amp;\tcredits\t(4) |  | (2,575) |  | (1,773) |
|  | $35,475 | \t$2,881 | \t$48,580 | \t$7,639 |

Full-year	2015	revenue	of	$35.5	billion	decreased	$13.1	billion,	or	27%,	versus	the	same	period	last	year	with	International	revenue	of	$25.2	billion	decreasing	$6.9	billion, or	21%,	and	North	America	revenue	of	$9.8	billion	decreasing	$6.3	billion,	or	39%.

Internationally,	revenue	decreased	21%	year-on-year	due	to	customer	budget	cuts	and	service	pricing	concessions	as	customers	responded	to	lower	commodity	prices. Revenue	was	also	impacted	by	the	fall	of	certain	currencies	against	the	US	dollar,	which	accounted	for	more	than	one-third	of	the	revenue	decline.		Europe/CIS/Africa	Area revenue	decreased	26%,	mainly	due	to	the

weakness	in	the	Russian	ruble.		Exploration	activities	in	the	UK	and	Norway	fell	as	customer	spending	decelerated.		In	Sub-Saharan	Africa,	offshore	rigs	demobilized	as exploration	decreased.		In	North	Africa,	work	progressed	slowly	while	Libya	activity	remained	muted,	as	onshore	operations	were	limited	due	to	security	concerns. Revenue	in	the	Latin	America	Area	declined	22%	due	to	significantly	lower	activity	levels	in	Mexico,	Brazil	and	Colombia	because	of	sustained	budget	cuts	that	led	to	rig count	reductions.		The	impact	of	the	devaluation	of	the	Venezuela	bolivar	also	affected	the	revenue	decline	in	the	Venezuela,	Trinidad	and	Tobago	GeoMarket.			 Middle East	&	Asia	Area	revenue	decreased	17%	due	to	a	double-digit	drop	in	revenue	in	the	Asia-Pacific	region,	particularly	in	Australia.		This	decrease	arose	from	reduced activity	and	pricing	concessions,	but	was	partially	offset	by	robust	activity	in	the	Gulf	Cooperation	Council	countries	in	the	Middle	East,	particularly	in	Saudi	Arabia, Kuwait	and	Oman.		Activity	in	Iraq	continued	to	decline.

North	America	full-year	2015	revenue	decreased	39%	year-on-year	mainly	from	land	which	was	down	45%,	while	offshore	decreased	17%	compared	to	the	same	period	of 2014.	The	decrease	in	land	was	driven	by	severe	activity	and	pricing	declines	as	customer	spending	was	cut.		With	the	year-end	US	land	rig	count	68%	lower	than	the	2014 peak,	the	massive	over-capacity	in	the	land	services	market	offers	no	signs	of	pricing	recovery	in	the	short-	to	medium-term.		Offshore	activity	in	the	US	Gulf	of	Mexico remained	resilient,	although	revenue	did	decline	as	work	shifted	from	exploration	to	development	activities	driven	by	customer	budget	cuts.

Full-year	2015	pretax	operating	income	of	$6.5	billion	decreased	$4.1	billion,	or	38%,	versus	the	same	period	last	year	with	International	pretax	operating	income	of	$6.0 billion	decreasing	22%	and	North	America	pretax	operating	income	of	$1.0	billion	decreasing	67%.

Full-year	2015	pretax	operating	margin	of	18.4%	decreased	342	bps	compared	to	2014.		Internationally,	pretax	operating	margin	of	23.6%	decreased	29	bps	year-on-year. Middle	East	&	Asia	pretax	operating	margin	decreased	67	bps	to	26.9%,	Latin	America	expanded	58	bps	to	21.9%,	and	Europe/CIS/Africa	declined	79	bps	to	21.3%. Despite	the	revenue	decline	from	pricing	concessions	and	an	increasingly	unfavorable	shift	in	revenue	mix	from	offshore	exploration	to	development,	pretax	operating margins	were	essentially	flat	internationally	as	a	result	of	proactive	cost	and	resource	management.		North	America	pretax	operating	margin	declined	874	bps	year-on-year to	10.2%	on	decreased	pressure	pumping	activity	and	pricing	weakness	on	land.

Full-year	2015	revenue	of	$9.5	billion	was	26%	lower	than	the	same	period	last	year	primarily	due	to	sustained	customer	cuts	in	exploration	and	discretionary	spending	that impacted	Wireline	and	Testing	Technologies	and	software	sales.		Revenue	also	decreased	due	to	lower	WesternGeco	marine	vessel	utilization	and	reduced	multiclient sales.

Year-on-year,	pretax	operating	margin	decreased	294	bps	to	25.8%	as	a	result	of	an	unfavorable	overall	revenue	mix	reflecting	the	decline	in	high-margin	exploration activity	as	well	as	lower	high-margin	multiclient	and	software	sales.

Full-year	2015	revenue	of	$13.6	billion	was	25%	lower	than	the	previous	year	primarily	due	to	the	severe	drop	in	rig	count	in	North	America,	reduced	activity	levels	and service	pricing	concessions	 internationally	that	mainly	affected	Drilling	&	Measurements	and	M-I	SWACO	technologies.	Unfavorable	currency	effects	in	Russia	and Venezuela	also	contributed	to	the	decline.

Year-on-year,	pretax	operating	margin	decreased	228	bps	to	18.7%,	primarily	due	to	a	decrease	in	higher-margin	activities	of	Drilling	&	Measurements	as	well	as	pricing concessions.		Despite	the	revenue	decline,	prompt	action	on	cost	management	and	the	benefit	of	a	local	cost	structure	that	minimized	the	impact	of	unfavorable	currency effects	on	pretax	operating	income	helped	limit	the	operating	margin	decline.

Full-year	 2015	 revenue	 of	 $12.5	 billion	 decreased	 29%	 year-on-year,	 with	 approximately	 two-thirds	 of	 the	 decline	 attributable to	Well	 Services	 pressure	 pumping technologies	as	a	result	of	activity	reductions	and	pricing	pressure	as	the	land	rig	count	declined	dramatically	in	North	America.

Year-on-year,	pretax	operating	margin	declined	535	bps	to	12.6%	as	lower	activity	and	increasing	pricing	pressure	continued	in	North	America	land.

|  | 2014 |  | 2013 |  |
| :--- | :--- | :--- | :--- | :--- |
|  |  | Income |  | Income |
|  |  | before |  | before |
|  | Revenue | Taxes | Revenue | Taxes |
| Reservoir\tCharacterization | $12,905 | \t$3,708 | \t$13,050 | \t$3,711 |
| Drilling | 18,128 | 3,805 | 16,792 | 3,238 |
| Production | 17,763 | 3,193 | 15,646 | 2,624 |
| Eliminations\t&amp;\tother | (216) | (130) | (222) | (229) |
| Pretax\toperating\tincome |  | 10,576 |  | 9,344 |
| Corporate\t&amp;\tother\t(1) |  | (848) |  | (726) |
| Interest\tincome\t(2) |  | 31 |  | 22 |
| Interest\texpense\t(3) |  | (347) |  | (369) |
| Charges\tand\tcredits\t(4) |  | (1,773) |  | 420 |
|  | $48,580 | \t$7,639 | \t$45,266 | \t$8,691 |

|  | 2014 |  | 2013 |  |
| :--- | :--- | :--- | :--- | :--- |
|  |  | Income |  | Income |
|  |  | before |  | before |
|  | Revenue | Taxes | Revenue | Taxes |
| North\tAmerica | $16,151 | \t$3,057 | \t$13,897 | \t$2,735 |
| Latin\tAmerica | 7,699 | 1,639 | 7,754 | 1,589 |
| Europe/CIS/Africa | 12,515 | 2,765 | 12,411 | 2,593 |
| Middle\tEast\t&amp;\tAsia | 11,875 | 3,273 | 10,767 | 2,697 |
| Eliminations\t&amp;\tother | 340 | (158) | 437 | (270) |
| Pretax\toperating\tincome |  | 10,576 |  | 9,344 |
| Corporate\t&amp;\tother\t(1) |  | (848) |  | (726) |
| Interest\tincome\t(2) |  | 31 |  | 22 |
| Interest\texpense\t(3) |  | (347) |  | (369) |
| Charges\tand\tcredits\t(4) |  | (1,773) |  | 420 |
|  | $48,580 | \t$7,639 | \t$45,266 | \t$8,691 |

Full-year	2014	revenue	of	$48.6	billion	grew	$3.3	billion,	or	7%,	versus	the	same	period	last	year	with	International	revenue	of	$32.1	billion	increasing	$1.2	billion,	or	4%, and	North	America	revenue	of	$16.2	billion	growing	$2.3	billion,	or	16%.

Internationally,	higher	activities	in	a	number	of	GeoMarkets,	both	offshore	and	in	key	land	markets,	contributed	to	the	increase.		The	increase	was	led	by	the	Middle	East	& Asia,	which	increased	10%,	mainly	from	robust	drilling	and	exploration	results	in	Saudi	Arabia,	Australia,	the	United	Arab	Emirates	and	Oman.		Europe/CIS/Africa increased	1%,	led	by	the	Sub-Saharan	Africa	region	on	strong

development	and	exploration	activities,	particularly	in	Central	West	Africa,	Angola	and	Continental	Europe	GeoMarkets.		Norway	also	experienced	strong	growth	driven by	market	share	gains	and	higher	rig-related	services	for	a	number	of	customers.		Latin	America,	however,	decreased	1%	primarily	because	of	lower	activity	and	pricing	in Brazil	and	Mexico	which	was	partially	offset	by	strong	activity	in	Argentina	and	Ecuador.

North	America	revenue	increased	16%	mainly	due	to	land,	which	was	up	22%,	while	offshore	was	down	3%.		The	increase	in	land	was	driven	by	market	share	gains	in pressure	pumping,	artificial	lift	and	drilling	services.			The	pressure	pumping	growth	was	augmented	by	improvements	in	operational	efficiency	and	the	introduction	of	new technologies.		The	decrease	in	offshore	revenue	was	attributable	to	lower	drilling	and	exploration	activities,	and	due	to	a	series	of	operational	delays	that	impacted	several product	lines	earlier	in	the	year	combined	with	lower	multiclient	sales.

Full-year	2014	pretax	operating	income	of	$10.6	billion	grew	$1.2	billion,	or	13%,	versus	the	same	period	last	year	with	International	pretax	operating	income	of	$7.7 billion	increasing	12%	and	North	America	pretax	operating	income	of	$3.1	billion	increasing	12%.

Full-year	2014	pretax	operating	margin	of	21.8%	increased	113	bps	compared	to	2013,	as	pretax	operating	margins	internationally	were	up	168	bps,	to	23.9%,	while	North America	pretax	operating	margin	was	down	75	bps,	to	18.9%.		The	increase	in	International	Area	margins	reflected	increased	high-margin	exploration	activities,	market share	gains,	growth	in	accretive	integration-related	activities	and	premium	pricing	on	new	technology	introductions.		The	North	America	margin	contraction	reflected pressure	pumping	commodity	inflation.

Full-year	2014	revenue	of	$12.9	billion	was	down	1%	compared	to	2013.		Revenue	increased	in	Testing	Services,	from	higher	offshore	exploration,	and	Software	Integrated Solutions,	driven	by	software	sales	across	all	international	areas.		However,	these	increases	were	offset	by	lower	WesternGeco	marine	vessel	utilization	and	reduced multiclient	seismic	sales.

Year-on-year,	pretax	operating	margin	increased	30	bps,	to	28.7%,	largely	due	to	the	higher-margin	exploration	activities	that	benefited	Wireline	Technologies	and	Testing Services.		Higher	margin	software	sales	also	contributed	to	the	improvement.			These	increases	were	partially	offset	by	lower	profitability	in	WesternGeco	due	to	lower vessel	utilization	and	multiclient	seismic	sales.

Full-year	 2014	 revenue	 of	 $18.1	 billion	 was	 8%	 higher	 than	 2013,	 primarily	 due	 to	 the	 robust	 demand	 for	 Drilling	 &	 Measurements	 services	 and	 M-I	 SWACO Technologies	as	activity	strengthened	in	the	North	America	and	Middle	East	&	Asia	Areas.		Land	Rig	revenue	from	the	May	2014	acquisition	of	Saxon	also	contributed	to the	growth.

Year-on-year,	pretax	operating	margin	increased	171	bps,	to	21.0%,	primarily	due	to	the	increase	in	higher-margin	exploration	activities	of	Drilling	&	Measurements	in North	America	offshore	and	in	the	international	markets.		Improved	profitability	on	Integrated	Drilling	Services	activities	also	contributed	to	the	margin	increase.

Full-year	2014	revenue	of	$17.8	billion	increased	14%	compared	to	2013,	primarily	from	Well	Services	pressure	pumping	technologies	driven	by	market	share	gains, improvements	in	operational	efficiency	and	the	introduction	of	new	technologies.		Schlumberger	Production	Management	(SPM)	revenue	grew	as	projects	in	Latin	America continued	to	progress	ahead	of	work	plans.		Revenue	from	the	expanding	artificial	lift	business	also	contributed	to	the	year-on-year	growth.

Year-on-year,	 pretax	 operating	 margin	 increased 121 bps,	 to 18.0%,	 mainly on	 improved	 profitability	 for	 Well	 Services	 and	 Well	 Intervention,	 particularly internationally.		SPM	activities	also	contributed	to	the	margin	expansion.		However,	these	improvements	were	partially	offset	by	the	decrease	in	margins	in	North	America due	to	pressure	pumping	commodity	cost	inflation.

# Interest	and	Other	Income

Interest	and	other	income	consisted	of	the	following:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Interest\tincome | $52 | $51 | $33 |
| Earnings\tof\tequity\tmethod\tinvestments | 184 | 240 | 132 |
|  | $236 | $291 | $165 |

The	decrease	in	earnings	of	equity	method	investments	in	2015	as	compared	to	2014	primarily	reflects	the	effects	of	the	downturn	in	the	oil	and	gas	industry,	which	has negatively	impacted	the	majority	of	Schlumberger's	investments	in	affiliates,	particularly	those	in	North	America.

The	increase	in	earnings	of	equity	method	investments	in	2014	as	compared	to	2013	primarily	reflects	the	strong	performance	of	a	drilling	service	company	in	which Schlumberger	has	an	investment,	as	well	as	the	impact	of	the	first	full	year	of	results	from	the	OneSubsea	joint	venture.

# Interest	Expense

Interest	expense	of	$346	million	in	2015	decreased	by	$23	million	compared	to	2014	primarily	as	the	effect	of	an	increase	in	the	weighted	average	debt	balance	of approximately	$0.5	billion	was	more	than	offset	by	a	30	bps	decrease	in	the	weighted	average	borrowing	rates	from	2.8%	in	2014	to	2.5%	in	2015.

Interest	expense	of	$369	million	in	2014	decreased	by	$22	million	compared	to	2013	primarily	as	the	effect	of	an	increase	in	the	weighted	average	debt	balance	of approximately	$1.1	billion	was	more	than	offset	by	a	40	bps	decrease	in	the	weighted	average	borrowing	rates	from	3.2%	in	2013	to	2.8%	in	2014.

# Other

Research	&	engineering	and	General	&	administrative	expenses,	as	a	percentage	of	Revenue,	were	as	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Research\t&amp;\tengineering | 3.1% | 2.5% | 2.6% |
| General\t&amp;\tadministrative | 1.4% | 1.0% | 0.9% |

# Income	Taxes

The	Schlumberger	effective	tax	rate	is	sensitive	to	the	geographic	mix	of	earnings.	When	the	percentage	of	pretax	earnings	generated	outside	of	North	America	increases, the	Schlumberger	effective	tax	rate	will	generally	decrease.	Conversely,	when	the	percentage	of	pretax	earnings	generated	outside	of	North	America	decreases,	the Schlumberger	effective	tax	rate	will	generally	increase.

The	effective	tax	rate	for	each	of	2015,	2014	and	2013	was	significantly	impacted	by	the	charges	and	credits	described	in	Note	3	to	the	Consolidated	Financial	Statements because	they	were	only	partially	tax	effective.		Excluding	the	impact	of	these	charges	and	credits,	the	effective	tax	rate	was	20.2%	in	2015,	21.9%	in	2014	and	22.9%	in 2013.		The	decrease	in	the	effective	tax	rate,	excluding	the	impact	of	charges	and	credits,	was	primarily	attributable	to	the	change	in	the	geographic	mix	of	earnings	and	the favorable	resolution	of	tax	examinations	in	certain	jurisdictions.

# Charges	and	Credits

Schlumberger	recorded	significant	charges	and	credits	in	continuing	operations	during	2015,	2014	and	2013.	These	charges	and	credits,	which	are	summarized	below,	are more	fully	described	in	Note	3	to	the	Consolidated	Financial	Statements.

The	following	is	a	summary	of	the	2015	charges	and	credits,	all	of	which	were	classified	as	Impairments	&	other	in	the	Consolidated	Statement	of	Income:

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| Workforce\treductions | $920 | $107 | $813 |
| Fixed\tasset\timpairments | 776 | 141 | 635 |
| Inventory\twrite-downs | 269 | 27 | 242 |
| Impairment\tof\tSPM\tproject | 182 | 36 | 146 |
| Facility\tclosures | 177 | 37 | 140 |
| Geopolitical\tevents | 77 | - | 77 |
| Currency\tdevaluation\tloss\tin\tVenezuela | 49 | - | 49 |
| Contract\ttermination\tcosts | 41 | 2 | 39 |
| Other | 84 | 7 | 77 |
|  | $2,575 | $357 | $2,218 |

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| WesternGeco\trestructuring | $806 | $25 | $781 |
| Currency\tdevaluation\tloss\tin\tVenezuela | 472 | - | 472 |
| Workforce\treduction | 296 | 37 | 259 |
| Impairment\tof\tSPM\tproject | 199 | 72 | 127 |
|  | $1,773 | $134 | $1,639 |

The	following	is	a	summary	of	the	2013	charges	and	credits:

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| Gain\ton\tformation\tof\tOneSubsea\tjoint\tventure\t(1) | $(1,028) | $- | $(1,028) |
| Impairment\tof\tequity\tmethod\tinvestments\t(2) | 364 | 19 | 345 |
| Provision\tfor\taccounts\treceivable\t(3) | 152 | 30 | 122 |
| Currency\tdevaluation\tloss\tin\tVenezuela\t(2) | 92 | - | 92 |
|  | $(420) | $49 | $(469) |

(1) Classified	as	Gain	on	formation	of	OneSubsea	in	the	Consolidated	Statement	of	Income.

(2) Classified	in	Impairments	&	other	in	the	Consolidated	Statement	of	Income.

(3) Classified	in	Cost	of	revenue	in	the	Consolidated	Statement	of	Income.

# Net	Debt

Net	Debt	represents	gross	debt	less	cash,	short-term	investments	and	fixed	income	investments,	held	to	maturity.	Management	believes	that	Net	Debt	provides	useful information	regarding	the	level	of	Schlumberger's	indebtedness	by	reflecting	cash	and	investments	that	could	be	used	to	repay	debt.

Details	of	changes	in	Net	Debt	follow:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Income\tfrom\tcontinuing\toperations\tbefore\tconcontrolling\tinterests | $2,135 | $5,711 | \t$6,843 |
| Gain\ton\tformation\tof\tOneSubsea\tjoint\tventure | - | - | (1,028) |
| Impairments\tand\tother\tcharges | 2,575 | 1,773 | 608 |
| Depreciation\tand\tamortization\t(1) | 4,078 | 4,094 | 3,879 |
| Earnings\tof\tequity\tmethod\tinvestments,\tless\tdividends\treceived | (125) | (113) | (71) |
| Pension\tand\tother\tpostretirement\tbenefits\texpense | 438 | 355 | 518 |
| Stock-based\tcompensation\texpense | 326 | 329 | 315 |
| Pension\tand\tother\tpostretirement\tbenefits\tfunding | (346) | (390) | (538) |
| (Increase)\tdecrease\tin\tworking\tcapital\t(2) | (478) | (36) | 90 |
| Other | 202 | (528) | 74 |
| Cash\tflow\tfrom\toperations | 8,805 | 11,195 | 10,690 |
| Capital\texpenditures | (2,410) | (3,976) | (3,943) |
| SPM\tinvestments | (953) | (740) | (902) |
| Multiclient\tseismic\tdata\tcapitalized | (486) | (321) | (394) |
| Free\tcash\tflow\t(3) | 4,956 | 6,158 | 5,451 |
| Dividends\tpaid | (2,419) | (1,968) | (1,608) |
| Proceeds\tfrom\temployee\tstock\tplans | 448 | 825 | 537 |
| Stock\trepurchase\tprogram | (2,182) | (4,678) | (2,596) |
|  | 803 | 337 | 1,784 |
| Business\tacquisitions\tand\tinvestments,\tnet\tof\tcash\tacquired\tplus\tdebt\tassumed | (478) | (1,501) | (610) |
| Payment\tfor\tOneSubsea\ttransaction | - | - | (600) |
| Discontinued\toperations\t-\tsettlement\twith\tU.S.\tDepartment\tof\tJustice\t(4) | (233) | - | - |
| Other | (252) | 220 | 94 |
| (Increase)\tdecrease\tin\tNet\tDebt | (160) | (944) | 668 |
| Net\tDebt,\tBeginning\tof\tperiod | (5,387) | (4,443) | (5,111) |
| Net\tDebt,\tEnd\tof\tperiod | $(5,547) | $(5,387) | \t$(4,443) |

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

(2) Includes	severance	payments	of	approximately	$810	million	during	2015.

(3) "Free	cash	flow"	represents	cash	flow	from	operations	less	capital	expenditures,	SPM	investments	and	multiclient	seismic	data	capitalized.		Management	believes that	this	is	an	important	measure	because	it	represents	funds	available	to	reduce	debt	and	pursue	opportunities	that	enhance	shareholder	value	such	as	acquisitions and	returning	cash	to	shareholders	through	stock	repurchases	and	dividends.

(4) Refer	to	Note	20	to	the	Consolidated	Financial	Statements	for	details.

|  | Dec.	31, | Dec.	31, | Dec.	31, |
| :--- | :--- | :--- | :--- |
| Components\tof\tNet\tDebt | 2015 | 2014 | 2013 |
| Cash | $2,793 | \t$3,130 | \t$3,472 |
| Short-term\tinvestments | 10,241 | 4,371 | 4,898 |
| Fixed\tincome\tinvestments,\theld\tto\tmaturity | 418 | 442 | 363 |
| Long-term\tdebt\t–\tcurrent\tportion | (3,011) | (1,244) | (1,819) |
| Short-term\tborrowings | (1,546) | (1,521) | (964) |
| Long-term\tdebt | (14,442) | (10,565) | (10,393) |
|  | $(5,547) | \t$(5,387) | \t$(4,443) |

· On	August	26,	2015,	Schlumberger	and	Cameron	jointly	announced	that	they	had	entered	into	a	definitive	merger	agreement	in	which	Cameron	will	merge	with Schlumberger	 Holdings	 Corporation,	 an	 indirect	 wholly-owned	 United	 States	 subsidiary	 of	 Schlumberger.	 	 Under	 the	 terms	 of	 the	 agreement,	 Cameron shareholders	will	receive	0.716	shares	of	Schlumberger

Limited	common	stock	and	a	cash	payment	of	$14.44	in	exchange	for	each	Cameron	share	of	common	stock	outstanding.		In	connection	with	this	transaction, Schlumberger	Holdings	Corporation	will	acquire	approximately	137	million	shares	of	common	stock	from	Schlumberger	Limited	and	transfer	these	shares	to Cameron's	shareholders.		Additionally,	Schlumberger	Holdings	Corporation	will	pay	cash	of	approximately	$2.8	billion	in	connection	with	this	transaction.		The transaction	remains	subject	to	certain	regulatory	approvals	and	other	customary	closing	conditions.		It	is	anticipated	that	the	closing	of	this	transaction	will	occur in	the	first	quarter	of	2016.

In	order	to	partially	fund	the	purchase	of	the	137	million	shares	of	common	stock	from	Schlumberger	Limited	that	will	be	transferred	to	Cameron	stockholders, Schlumberger	Holdings	Corporation	issued	the	following	notes	during	the	fourth	quarter	of	2015:

Schlumberger	Holdings	Corporation	expects	to	use	a	combination	of	cash	on	hand	and	commercial	paper	borrowings	to	finance	the	difference	between	the proceeds	received	from	the	issuance	of	these	notes	and	the	cash	required	to	complete	the	Cameron	merger.

· During	the	fourth	quarter	of	2013,	Schlumberger	issued	€0.5	billion	of	1.50%	Guaranteed	Notes	due	2019.

· During	the	second	quarter	of	2013,	Schlumberger	paid	Cameron	$600	million	in	connection	with	the	formation	of	the	OneSubsea	joint	venture.

· On	April	17,	2008,	the	Schlumberger	Board	of	Directors	(the	"Board")	approved	an	$8	billion	share	repurchase	program	for	shares	of	Schlumberger	common stock,	to	be	acquired	before	December	31,	2011.	On	July	21,	2011,	the	Board	approved	an	extension	of	this	repurchase	program	to	December	31,	2013.	This program	was	completed	during	the	third	quarter	of	2013.

On	July	18,	2013,	 the	Board	approved	a	new	$10	billion	share	repurchase	program	 to	be	completed	at the latest	by	June	30,	2018.	Schlumberger	had repurchased	$8.6	billion	of	shares	under	this	new	share	repurchase	program	as	of	December	31,	2015.

The	following	table	summarizes	the	activity	under	these	share	repurchase	programs	during	2015,	2014	and	2013:

|  | Total	cost | Total	number | Average	price |
| :--- | :--- | :--- | :--- |
|  | of\tshares | of\tshares | paid\tper |
|  | purchased | purchased | share |
| 2015 | $2,182,180 | 26,751.0 | $81.57 |
| 2014 | $4,677,687 | 47,545.9 | $98.38 |
| 2013 | $2,596,447 | 31,349.5 | $82.82 |

· Net	cash	provided	by	operating	activities	was	$8.8	billion	in	2015,	$11.2	billion	in	2014	and	$10.7	billion	in	2013.	The	decrease	in	operating	cash	flows	in	2015 as	compared	to	2014	was	largely	attributable	to	lower	earnings	before	non-cash	charges	and	credits	and	depreciation	and	amortization	expense	while	the	increase in	operating	cash	flows	in	2014	as	compared	to	2013	was	largely	attributable	to	higher	earnings	before	non-cash	charges	and	credits	and	depreciation	and amortization	expense.

On	January	15,	2015,	Schlumberger	announced	that	its	Board	approved	a	25%	increase	in	the	quarterly	dividend,	to	$0.50.

· During	the	fourth	quarter	of	2015,	Schlumberger	made	a	$500	million	cash	investment	into	a	new	SPM	project.		Schlumberger	is	obligated	to	make	a	further $500	million	cash	investment	into	this	project	during	the	first	quarter	of	2016.

●During	2015,	2014	and	2013	Schlumberger	made	contributions	of	$346	million,	$390	million	and	$538	million,	respectively,	to	its	postretirement	benefit	plans. The	US	pension	plans	were	86%	funded	at	both	December	31,	2015	and	2014	based	on	the	projected	benefit	obligation.

Schlumberger's	international	defined	benefit	pension	plans	were	a	combined	93%	funded	at	December	31,	2015	based	on	the	projected	benefit	obligation.	This compares	to	94%	funded	at	December	31,	2014.

Schlumberger	 currently	 anticipates	 contributing	 approximately	 $350	 million to its	 postretirement	 benefit	 plans in	 2016,	 subject to	 market	 and	 business conditions.

Schlumberger	maintains	a	€5.0	billion	Guaranteed	Euro	Medium	Term	Note	program.	This	program	provides	for	the	issuance	of	various	types	of	debt	instruments	such	as fixed	or	floating	rate	notes	in	Euro,	US	dollar	or	other	currencies.		Schlumberger	has	issued	€0.5	billion	1.50%	Guaranteed	Notes	due	2019	under	this	program.

As	of	December	31,	2015,	Schlumberger	had	$13.0	billion	of	cash	and	short-term	investments	on	hand.	Schlumberger	had	separate	committed	debt	facility	agreements aggregating	$3.8	billion	with	commercial	banks,	of	which	$1.4	billion	was	available	and	unused	as	of	December	31,	2015.	The	$3.8	billion	of	committed	debt	facility agreements	included	$3.5	billion	of	committed	facilities,	which	support	commercial	paper	programs.	Schlumberger	believes	that	these	amounts	are	sufficient	to	meet	future business	requirements	for	at	least	the	next	12	months.

# Summary	of	Contractual	Obligations

|  |  |  | Accumulated |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Total | 2016 | 2017-2018 | 2019-2020 | After\t2020 |
| Debt\t(1) | $18,999 | \t$4,558 | \t$4,152 | \t$2,511 | \t$7,778 |
| Interest\ton\tfixed\trate\tdebt\tobligations\t(2) | 2,444 | 401 | 740 | 653 | 650 |
| Operating\tleases | 1,428 | 261 | 367 | 274 | 526 |
| Purchase\tobligations\tand\tother\t(3) | 1,922 | 1,734 | 120 | 49 | 19 |
|  | $24,793 | \t$6,954 | \t$5,379 | \t$3,487 | \t$8,973 |

(1) Excludes	future	payments	for	interest.

(2) Excludes	interest	on	$4.7	billion	of	variable	rate	debt,	which	had	a	weighted	average	interest	rate	of	1.0%	as	of	December	31,	2015.

(3) Represents	an	estimate	of	contractual	obligations	in	the	ordinary	course	of	business.	Although	these	contractual	obligations	are	considered	enforceable	and	legally binding,	the	terms	generally	allow	Schlumberger	the	option	to	reschedule	and	adjust	its	requirements	based	on	business	needs	prior	to	the	delivery	of	goods.		This amount	also	reflects	a	$500	million	cash	investment	into	an	SPM	project	that	Schlumberger	is	obligated	to	make	during	the	first	quarter	of	2016.

Refer	to	Note	18,	Pension	and	Other	Benefit	Plans,	of	the	Consolidated	Financial	Statements	for	details	regarding	Schlumberger's	pension	and	other	postretirement	benefit obligations.

As	discussed	in	Note	14,	Income	Taxes,	of	the	Consolidated	Financial	Statements,	included	in	the	Schlumberger	Consolidated	Balance	Sheet	at	December	31,	2015	is approximately	$1.3	billion	of	liabilities	associated	with	uncertain	tax	positions	in	the	over	100	jurisdictions	in	which	Schlumberger	conducts	business.	Due	to	the	uncertain and	complex	application	of	tax	regulations,	combined	with	the	difficulty	in	predicting	when	tax	audits	throughout	the	world	may	be	concluded,	Schlumberger	cannot	make reliable	estimates	of	the	timing	of	cash	outflows	relating	to	these	liabilities.

Schlumberger	has	outstanding	letters	of	credit/guarantees	that	relate	to	business	performance	bonds,	custom/excise	tax	commitments,	facility	lease/rental	obligations,	etc. These	were	entered	into	in	the	ordinary	course	of	business	and	are	customary	practices	in	the	various	countries	where	Schlumberger	operates.

# Critical	Accounting	Policies	and	Estimates

The	preparation	of	financial	statements	and	related	disclosures	in	conformity	with	accounting	principles	generally	accepted	in	the	United	States	requires	Schlumberger	to make	estimates	and	assumptions	that	affect	the	reported	amounts	of	assets	and	liabilities,	the	disclosure	of	contingent	assets	and	liabilities	and	the	reported	amounts	of revenue	and	expenses.	The	following	accounting	policies	involve	"critical	accounting	estimates"	because	they	are	particularly	dependent	on	estimates	and	assumptions made	by	Schlumberger	about	matters	that	are	inherently	uncertain.

Schlumberger	bases	its	estimates	on	historical	experience	and	on	various	assumptions	that	are	believed	to	be	reasonable	under	the	circumstances,	the	results	of	which	form the	basis	for	making	judgments	about	the	carrying	values	of	assets	and	liabilities	that	are	not	readily	apparent	from	other	sources.	Actual	results	may	differ	from	these estimates	under	different	assumptions	or	conditions.

# Multiclient	Seismic	Data

Schlumberger	capitalizes	the	costs	associated	with	obtaining	multiclient	seismic	data.	The	carrying	value	of	the	multiclient	seismic	data	library	at	December	31,	2015	and 2014	was	$1.03	billion	and	$793	million,	respectively.	Such	costs	are	charged	to	Cost	of	revenue	based	on	the	percentage	of	the	total	costs	to	the	estimated	total	revenue	that Schlumberger	expects	to	receive	from	the	sales	of	such	data.	However,	under	no	circumstances	will	an	individual	survey	carry	a	net	book	value	greater	than	a	4-year, straight-line	amortized	value.

The	carrying	value	of	surveys	is	reviewed	for	impairment	annually	as	well	as	when	an	event	or	change	in	circumstance	indicates	an	impairment	may	have	occurred. Adjustments	to	the	carrying	value	are	recorded	when	it	is	determined	that	estimated	future	revenues,	which	involve	significant	judgment	on	the	part	of	Schlumberger, would	not	be	sufficient	to	recover	the	carrying	value	of	the	surveys.	Significant	adverse	changes	in	Schlumberger's	estimated	future	cash	flows	could	result	in	impairment charges	in	a	future	period.	For	purposes	of	performing	the	annual	impairment	test	of	the	multiclient	library,	larger	surveys	(which	are	typically	prefunded	by	customers)	are analyzed	for	impairment	on	a	survey-by-survey	basis	and	smaller	surveys	are	analyzed	based	on	two	pools	of	surveys:	United	States	and	non-United	States.	The	United States	and	non-United	States	pools	were	determined	to	be	the	most	appropriate	level	at	which	to	perform	the	impairment	review	based	upon	a	number	of	factors,	including (i)	various	macroeconomic	factors	that	influence	the	ability	to	successfully	market	surveys,	and	(ii)	the	focus	of	the	sales	force	and	related	costs.

# Allowance	for	Doubtful	Accounts

Schlumberger	maintains	an	allowance	for	doubtful	accounts	in	order	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.	Depending	on	how	such	potential	issues	are	resolved,	or	if	the	financial	condition	of	Schlumberger	customers	were	to deteriorate	resulting	in	an	impairment	of	their	ability	to	make	payments,	adjustments	to	the	allowance	may	be	required.

Schlumberger	operates	in	more	than	85	countries.	At	December	31,	2015,	only	four	of	those	countries	individually	accounted	for	greater	than	5%	of	Schlumberger's accounts	receivable	balance,	of	which	only	two	(Venezuela	and	Mexico)	accounted	for	greater	than	10%.		Schlumberger	has	experienced	delays	in	payment	from	its national	oil	company	customer	in	Venezuela.		During	the	fourth	quarter	of	2015,	Schlumberger	entered	into	an	agreement	with	its	national	oil	company	customer	in Venezuela	to	receive	certain	fixed	assets	in	lieu	of	payment	of	approximately	$200	million	of	accounts	receivable.

# Goodwill,	Intangible	Assets	and	Long-Lived	Assets

Schlumberger	records	the	excess	of	purchase	price	over	the	fair	value	of	the	tangible	and	identifiable	intangible	assets	acquired	and	liabilities	assumed	as	goodwill.	The goodwill	relating	to	each	of	Schlumberger's	reporting	units	is	tested	for	impairment	annually	as	well	as	when	an	event,	or	change	in	circumstances,	indicates	an	impairment may	have	occurred.

Under	 generally	 accepted	 accounting	 principles,	 Schlumberger	 has	 the	 option	 to	 first	 assess	 qualitative	 factors	 to	 determine	 whether	 the	 existence	 of	 events	 or circumstances	leads	to	a	determination	that	it	is	more	likely	than	not	that	the	fair	value	of	one	of	its	reporting	units	is	greater	than	its	carrying	amount.	If,	after	assessing	the totality	of	events	or	circumstances,	Schlumberger	determines	it	is	more	likely	than	not	that	the	fair	value	of	a	reporting	unit	is	greater	than	its	carrying	amount,	there	is	no need	to	perform	any	further	testing.	However,	if	Schlumberger	concludes	otherwise,	then	it	is	required	to	perform	the	first	step	of	a	two-step	impairment	test	by	calculating the	fair	value	of	the	reporting	unit	and	comparing	the	fair	value	with	the	carrying	amount	of	the	reporting	unit.	If	the	fair	value	of	the	reporting	unit	is	less	than	its	carrying value,	an	impairment	loss	is	recorded	to	the	extent	that	the	implied	fair	value	of	the	goodwill	of	the	reporting	unit	is	less	than	its	carrying	value.

Schlumberger	has	the	option	to	bypass	the	qualitative	assessment	for	any	reporting	unit	in	any	period	and	proceed	directly	to	performing	the	first	step	of	the	two-step goodwill	impairment	test.

For	purposes	of	performing	the	impairment	test	for	goodwill,	Schlumberger's	reporting	units	are	its	three	Groups:	Reservoir	Characterization,	Drilling	and	Production. Schlumberger	elected	to	perform	the	qualitative	assessment	described	above	for	purposes	of	its	annual	goodwill	impairment	test	 in	2015.	Based	on	this	assessment, Schlumberger	concluded	that	it	was	more	likely	than	not	that	the	fair	value	of	each	of	its	reporting	units	was	greater	than	its	carrying	amount.	Accordingly,	no	further testing	was	required.

Long-lived	assets,	including	fixed	assets,	intangible	assets	and	investments	in	SPM	projects,	are	reviewed	for	impairment	whenever	events	or	changes	in	circumstances indicate	that	the	carrying	value	may	not	be	recoverable.	In	reviewing	for	impairment,	the	carrying	value	of	such	assets	is	compared	to	the	estimated	undiscounted	future cash	flows	expected	from	the	use	of	the	assets	and	their	eventual	disposition.	If	such	cash	flows	are	not	sufficient	to	support	the	asset's	recorded	value,	an	impairment charge	is	recognized	to	reduce	the	carrying	value	of	the	long-lived	asset	to	its	estimated	fair	value,	as	was	the	case	for	certain	assets	in	2015	and	2014.	The	determination	of future	cash	flows	as	well	as	the	estimated	fair	value	of	long-lived	assets	involves	significant	estimates	on	the	part	of	management.	If	there	is	a	material	change	in	economic conditions	or	other	circumstances	influencing	the	estimate	of	future	cash	flows	or	fair	value,	Schlumberger	could	be	required	to	recognize	impairment	charges	in	the	future.

Schlumberger	conducts	business	in	more	than	100	tax	jurisdictions,	a	number	of	which	have	tax	laws	that	are	not	fully	defined	and	are	evolving.	Schlumberger's	tax	filings are	subject	to	regular	audits	by	the	tax	authorities.	These	audits	may	result	in	assessments	for	additional	taxes	that	are	resolved	with	the	authorities	or,	potentially,	through the	courts.	Schlumberger	recognizes	the	impact	of	a	tax	position	in	its	financial	statements	if	that	position	is	more	likely	than	not	of	being	sustained	on	audit,	based	on	the technical	merits	of	the	position.		Tax	liabilities	are	recorded	based	on	estimates	of	additional	taxes	which	will	be	due	upon	the	conclusion	of	these	audits.	Estimates	of	these tax	liabilities	are	made	based	upon	prior	experience	and	are	updated	in	light	of	changes	in	facts	and	circumstances.	However,	due	to	the	uncertain	and	complex	application of	tax	regulations,	the	ultimate	resolution	of	audits	may	result	in	liabilities	that	could	be	materially	different	from	these	estimates.	In	such	an	event,	Schlumberger	will record	additional	tax	expense	or	tax	benefit	in	the	period	in	which	such	resolution	occurs.

# Pension	and	Postretirement	Benefits

Schlumberger's	pension	and	postretirement	benefit	obligations	are	described	in	detail	in	Note	18	to	the	Consolidated	Financial	Statements.	The	obligations	and	related costs	are	calculated	using	actuarial	concepts,	which	include	critical	assumptions	related	to	the	discount	rate,	expected	rate	of	return	on	plan	assets	and	medical	cost	trend rates.	These	assumptions	are	important	elements	of	expense	and/or	liability	measurement	and	are	updated	on	an	annual	basis,	or	upon	the	occurrence	of	significant	events.

The	discount	rate	that	Schlumberger	uses	reflects	the	prevailing	market	rate	of	a	portfolio	of	high-quality	debt	instruments	with	maturities	matching	the	expected	timing	of the	payment	of	the	benefit	obligations.	The	following	summarizes	the	discount	rates	utilized	by	Schlumberger	for	its	various	pension	and	postretirement	benefit	plans:

●The	 discount	 rate	 utilized	 to	 determine	 the liability	 for	 Schlumberger's	 United	 States	 pension	 plans	 and	 postretirement	 medical	 plans	 was	 4.50%	 at December	31,	2015	and	4.15%	at	December	31,	2014.

●The	weighted-average	discount	rate	utilized	to	determine	the	liability	for	Schlumberger's	international	pension	plans	was	4.36%	at	December	31,	2015	and 4.07%	at	December	31,	2014.

●The	 weighted-average	 discount	 rate	 utilized to	 determine	 expense for	 Schlumberger's	 United	 States	 pension	 plans	 and	 postretirement	 medical	 plans decreased	from	4.85%	in	2014	to	4.15%	in	2015.

●The	weighted-average	discount	rate	utilized	to	determine	expense	for	Schlumberger's	international	pension	plans	decreased	from	4.76%	in	2014	to	4.07%	in 2015.

The	expected	rate	of	return	for	Schlumberger's	retirement	benefit	plans	represents	the	average	rate	of	return	expected	to	be	earned	on	plan	assets	over	the	period	that benefits	included	in	the	benefit	obligation	are	expected	to	be	paid.	The	expected	rate	of	return	for	Schlumberger's	United	States	pension	plans	has	been	determined	based upon	expected	rates	of	return	for	the	investment	portfolio,	with	consideration	given	to	the	distribution	of	investments	by	asset	class	and	historical	rates	of	return	for	each individual	asset	class.	The	weighted	average	expected	rate	of	return	on	plan	assets	for	the	United	States	pension	plans	was	7.25%	in	both	2015	and	2014.	The	weighted average	expected	rate	of	return	on	plan	assets	for	the	international	pension	plans	was	7.50%	in	both	2015	and	2014.	A	lower	expected	rate	of	return	would	increase	pension expense.

Schlumberger's	medical	cost	trend	rate	assumptions	are	developed	based	on	historical	cost	data,	the	near-term	outlook	and	an	assessment	of	likely	long-term	trends.	The overall	medical	cost	trend	rate	assumption	utilized	to	determine	the	2015	postretirement	medical	expense	was	7.0%	graded	to	5.0%	over	the	next	ten	years.	The	overall medical	trend	rate	assumption	utilized	to	determine	the	postretirement	medical	liability	at	December	31,	2015	was	7.0%	graded	to	5.0%	over	the	next	ten	years.

The	following	illustrates	the	sensitivity	to	changes	in	certain	assumptions,	holding	all	other	assumptions	constant,	for	the	United	States	and	international	pension	plans:

|  | Effect	on	2015 | Effect	on |
| :--- | :--- | :--- |
|  | Pretax\tPension | Dec.\t31,\t2015 |
| Change\tin\tAssumption | Expense | Liability |
| 25\tbasis\tpoint\tdecrease\tin\tdiscount\trate | +$68 | +$457 |
| 25\tbasis\tpoint\tincrease\tin\tdiscount\trate | -$65 | -$431 |
| 25\tbasis\tpoint\tdecrease\tin\texpected\treturn\ton\tplan\tassets | +$25 | - |
| 25\tbasis\tpoint\tincrease\tin\texpected\treturn\ton\tplan\tassets | -$24 | - |

The	following	illustrates	the	sensitivity	to	changes	in	certain	assumptions,	holding	all	other	assumptions	constant,	for	Schlumberger's	United	States	postretirement	medical plans:

|  | Effect	on	2015 | Effect	on |
| :--- | :--- | :--- |
|  | Pretax\tPension | Dec.\t31,\t2015 |
| Change\tin\tAssumption | Expense | Liability |
| 25\tbasis\tpoint\tdecrease\tin\tdiscount\trate | +$6 | +$39 |
| 25\tbasis\tpoint\tincrease\tin\tdiscount\trate | -$5 | -$37 |
| 100\tbasis\tpoint\tdecrease\tper\tannum\tin\tmedical\tcost\ttrend\trate | -$6 | -$33 |
| 100\tbasis\tpoint\tincrease\tper\tannum\tin\tmedical\tcost\ttrend\trate | +$7 | +$37 |

# Investments	in	Affiliated	Companies

Investments	in	Affiliated	Companies	on	the	consolidated	balance	sheet	primarily	reflects	Schlumberger's	investments	in	privately	held	companies,	some	of	which	are	in	the startup	or	development	stages	and	are	often	still	defining	their	strategic	direction.	Such	investments	are	inherently	risky	and	their	success	is	dependent	on	factors	such	as technology	development,	market	acceptance	and	their	ability	to	raise	additional	funds.	The	technology	being	developed	by	these	companies	may	never	materialize	and	they could	 fail.	 Schlumberger	 monitors	 its	 portfolio	 to	 determine	 if	 any	 investment	 is	 other-than-temporarily	 impaired.	 If	 an	 investment	 is	 considered	 to	 be	 other-than- temporarily	impaired,	it	is	written	down	to	its	fair	value,	as	was	the	case	for	certain	investments	in	2015	and	2013.

# Item	7A.	Quantitative	and	Qualitative	Disclosures	About	Market	Risk.

Schlumberger	is	subject	to	market	risks	primarily	associated	with	changes	in	foreign	currency	exchange	rates	and	interest	rates.

As	a	multinational	company,	Schlumberger	conducts	business	in	approximately	85	countries.	Schlumberger's	functional	currency	is	primarily	the	US	dollar,	which	is consistent	with	the	oil	and	gas	industry.	Approximately	83%	of	Schlumberger's	revenue	in	2015	was	denominated	in	US	dollars.	However,	outside	the	United	States,	a significant	portion	of	Schlumberger's	expenses	is	incurred	in	foreign	currencies.	Therefore,	when	the	US	dollar	weakens	in	relation	to	the	foreign	currencies	of	the countries	in	which	Schlumberger	conducts	business,	the	US	dollar-reported	expenses	will	increase.

A	5%	increase	or	decrease	in	the	average	exchange	rates	of	all	the	foreign	currencies	in	2015	would	have	changed	revenue	by	approximately	1%.	If	the	2015	average exchange	rates	of	the	US	dollar	against	all	foreign	currencies	had	strengthened	by	5%,	Schlumberger's	pretax	operating	income	would	have	increased	by	approximately 3%.	Conversely,	a	5%	weakening	of	the	US	dollar	average	exchange	rates	would	have	decreased	pretax	operating	income	by	approximately	3%.

Please	refer	to	Note	3	to	the	Consolidated	Financial	Statements	for	a	discussion	of	exchange	rates	as	it	relates	to	Schlumberger's	operations	in	Venezuela.

Schlumberger	maintains	a	foreign-currency	risk	management	strategy	that	uses	derivative	instruments	to	protect	its	interests	from	unanticipated	fluctuations	in	earnings	and cash	flows	caused	by	volatility	in	currency	exchange	rates.	Foreign	currency	forward	contracts	and	foreign	currency	options	provide	a	hedge	against	currency	fluctuations either	on	monetary	assets/liabilities	denominated	in	other	than	a	functional	currency	or	on	expenses.

At	December	31,	2015,	contracts	were	outstanding	for	the	US	dollar	equivalent	of	$3.8	billion	in	various	foreign	currencies	of	which	$1.2	billion	relate	to	hedges	of	debt balances	denominated	in	currencies	other	than	the	functional	currency.

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.	At December	31,	2015,	Schlumberger	had	fixed	rate	debt	aggregating	approximately	$14.3	billion	and	variable	rate	debt	aggregating	approximately	$4.7	billion	before considering	the	effects	of	cross	currency	swaps.

Schlumberger's	exposure	to	interest	rate	risk	associated	with	its	debt	is	also	partially	mitigated	by	its	investment	portfolio.	Both	Short-term	investments	and	Fixed	income investments,	held	to	maturity,	which	totaled	approximately	$10.7	billion	at	December	31,	2015,	are	comprised	primarily	of	money	market	funds,	time	deposits,	certificates of	deposit,	commercial	paper,	bonds	and	notes,	substantially	all	of	which	are	denominated	in	US	dollars.	The	average	return	on	investments	was	1.0%	in	2015.

The	following	table	represents	the	carrying	amounts	of	Schlumberger's	debt	at	December	31,	2015	by	year	of	maturity:

|  |  |  |  |  | Expected	Maturity	Dates | Expected	Maturity	Dates |  |  |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2025 | Total |
| Fixed\trate\tdebt |  |  |  |  |  |  |  |  |  |  |
| 1.95%\tSenior\tNotes | $1,100 |  |  |  |  |  |  |  |  | \t $1,100 |
| 2.65%\tSenior\tNotes | 500 |  |  |  |  |  |  |  |  | 500 |
| 1.25%\tSenior\tNotes |  | \t $1,000 |  |  |  |  |  |  |  | 1,000 |
| 1.90%\tSenior\tNotes |  | 499 |  |  |  |  |  |  |  | 499 |
| 2.35%\tSenior\tNotes |  |  | \t $1,297 |  |  |  |  |  |  | 1,297 |
| 1.50%\tGuaranteed\tNotes |  |  |  | \t $566 |  |  |  |  |  | 566 |
| 3.00%\tSenior\tNotes |  |  |  |  | \t $1,591 |  |  |  |  | 1,591 |
| 3.30%\tSenior\tNotes |  |  |  |  |  | \t $1,597 |  |  |  | 1,597 |
| 4.20%\tSenior\tNotes |  |  |  |  |  | 1,100 |  |  |  | 1,100 |
| 2.40%\tSenior\tNotes |  |  |  |  |  |  | \t $999 |  |  | 999 |
| 3.63%\tSenior\tNotes |  |  |  |  |  |  | 845 |  |  | 845 |
| 3.65%\tSenior\tNotes |  |  |  |  |  |  |  | \t $1,496 |  | 1,496 |
| 4.00%\tSenior\tNotes |  |  |  |  |  |  |  |  | \t $1,741 | 1,741 |
| Total\tfixed\trate\tdebt | $1,600 | \t $1,499 | \t $1,297 | \t $566 | \t $1,591 | \t $2,697 | \t $1,844 | \t $1,496 | \t $1,741 | \t $14,331 |
| Variable\trate\tdebt | 2,957 | 28 | 1,329 | 354 | - | - | - | - | - | 4,668 |
| Total | $4,557 | \t $1,527 | \t $2,626 | \t $920 | \t $1,591 | \t $2,697 | \t $1,844 | \t $1,496 | \t $1,741 | \t $18,999 |

The	fair	market	value	of	the	outstanding	fixed	rate	debt	was	approximately	$14.3	billion	as	of	December	31,	2015.	The	weighted	average	interest	rate	on	the	variable	rate debt	as	of	December	31,	2015	was	1.0%.

Schlumberger	does	not	enter	into	derivatives	for	speculative	purposes.

# Forward-looking	Statements

This	Form	10-K	and	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;	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;	capital	expenditures	by	Schlumberger	and	the	oil	and	gas	industry;	the	business	strategies	of	Schlumberger's	customers;	the	integration	of	Cameron	into our	business;	the	anticipated	benefits	of	the	Cameron	transaction;	the	success	of	Schlumberger's	joint	ventures	and	alliances;	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;	pricing	erosion;	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	risk	that	the	contemplated	Cameron	merger	will	not occur,	negative	effects	from	the	pendency	of	the	contemplated	Cameron	merger;	the	inability	after	the	closing	of	the	Cameron	merger	to	successfully	integrate	the	merged businesses	and	to	realize	expected	synergies;	the	inability	to	retain	key	employees;	expenses	for	the	merger;	and	other	risks	and	uncertainties	detailed	in	the	Risk	Factors section	of	this	Form	10-K	and	other	filings	that	we	make	with	the	Securities	and	Exchange	Commission.	If	one	or	more	of	these	or	other	risks	or	uncertainties	materialize (or	the	consequences	of	such	a	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.

# Item	8.	Financial	Statements	and	Supplementary	Data.

# SCHLUMBERGER	LIMITED	AND	SUBSIDIARIES

# CONSOLIDATED	STATEMENT	OF	INCOME

| Year	Ended	December	31, | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Revenue | $35,475 | $48,580 | $45,266 |
| Interest\t&amp;\tother\tincome | 236 | 291 | 165 |
| Gain\ton\tformation\tof\tOneSubsea | - | - | 1,028 |
| Expenses |  |  |  |
| Cost\tof\trevenue | 28,321 | 37,398 | 35,331 |
| Research\t&amp;\tengineering | 1,094 | 1,217 | 1,174 |
| General\t&amp;\tadministrative | 494 | 475 | 416 |
| Impairments\t&amp;\tother | 2,575 | 1,773 | 456 |
| Interest | 346 | 369 | 391 |
| Income\tfrom\tcontinuing\toperations\tbefore\ttaxes | 2,881 | 7,639 | 8,691 |
| Taxes\ton\tincome | 746 | 1,928 | 1,848 |
| Income\tfrom\tcontinuing\toperations | 2,135 | 5,711 | 6,843 |
| Loss\tfrom\tdiscontinued\toperations | - | (205) | (69) |
| Net\tincome | 2,135 | 5,506 | 6,774 |
| Net\tincome\tattributable\tto\tnoncontrolling\tinterests | 63 | 68 | 42 |
| Net\tincome\tattributable\tto\tSchlumberger | $2,072 | $5,438 | $6,732 |
| Schlumberger\tamounts\tattributable\tto: |  |  |  |
| Income\tfrom\tcontinuing\toperations | 2,072 | 5,643 | 6,801 |
| Loss\tfrom\tdiscontinued\toperations | - | (205) | (69) |
| Net\tincome | $2,072 | $5,438 | $6,732 |
| Basic\tearnings\tper\tshare\tof\tSchlumberger |  |  |  |
| Income\tfrom\tcontinuing\toperations | $1.63 | $4.36 | $5.14 |
| Loss\tfrom\tdiscontinued\toperations | - | (0.16) | (0.05) |
| Net\tincome | $1.63 | $4.20 | $5.09 |
| Diluted\tearnings\tper\tshare\tof\tSchlumberger |  |  |  |
| Income\tfrom\tcontinuing\toperations | $1.63 | $4.31 | $5.10 |
| Loss\tfrom\tdiscontinued\toperations | - | (0.16) | (0.05) |
| Net\tincome\t(1) | $1.63 | $4.16 | $5.05 |
| Average\tshares\toutstanding: |  |  |  |
| Basic | 1,267 | 1,295 | 1,323 |
| Assuming\tdilution | 1,275 | 1,308 | 1,333 |

See	the	Notes	to	Consolidated	Financial	Statements

# CONSOLIDATED	STATEMENT	OF	COMPREHENSIVE	INCOME

| Year	Ended	December	31, | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Net\tincome | $2,135 | $5,506 | $6,774 |
| Currency\ttranslation\tadjustments |  |  |  |
| Unrealized\tnet\tchange\tarising\tduring\tthe\tperiod | (522) | (463) | (151) |
| Marketable\tsecurities |  |  |  |
| Unrealized\t(loss)\tgain\tarising\tduring\tthe\tperiod | (50) | (166) | 35 |
| Reclassification\tto\tnet\tincome\t-\timpairment\tcharge | 40 | - | - |
| Cash\tflow\thedges |  |  |  |
| Net\t(loss)\tgain\ton\tcash\tflow\thedges | (178) | (238) | 49 |
| Reclassification\tto\tnet\tincome\tof\tnet\trealized\tgain\t(loss) | 235 | 113 | (50) |
| Pension\tand\tother\tpostretirement\tbenefit\tplans |  |  |  |
| Actuarial\tgain\t(loss) |  |  |  |
| Actuarial\t(loss)\tgain\tarising\tduring\tthe\tperiod | (210) | (1,285) | 1,328 |
| Amortization\tto\tnet\tincome\tof\tnet\tactuarial\tloss | 306 | 177 | 300 |
| Prior\tservice\tcost |  |  |  |
| Amortization\tto\tnet\tincome\tof\tnet\tprior\tservice\tcost | 101 | 128 | 125 |
| Income\ttaxes\ton\tpension\tand\tother\tpostretirement\tbenefit\tplans | (74) | 82 | (302) |
| Comprehensive\tincome | 1,783 | 3,854 | 8,108 |
| Comprehensive\tincome\tattributable\tto\tnoncontrolling\tinterests | 63 | 68 | 42 |
| Comprehensive\tincome\tattributable\tto\tSchlumberger | $1,720 | $3,786 | $8,066 |

# CONSOLIDATED	BALANCE	SHEET

| December	31, | 2015 | 2014 |
| :--- | :--- | :--- |
| ASSETS |  |  |
| Current\tAssets |  |  |
| Cash | $2,793 | $3,130 |
| Short-term\tinvestments | 10,241 | 4,371 |
| Receivables\tless\tallowance\tfor\tdoubtful\taccounts\t(2015\t-\t$333;\t2014\t-\t$275) | 8,780 | 11,171 |
| Inventories | 3,756 | 4,628 |
| Deferred\ttaxes | 208 | 144 |
| Other\tcurrent\tassets | 1,134 | 1,250 |
|  | 26,912 | 24,694 |
| Fixed\tIncome\tInvestments,\theld\tto\tmaturity | 418 | 442 |
| Investments\tin\tAffiliated\tCompanies | 3,311 | 3,235 |
| Fixed\tAssets\tless\taccumulated\tdepreciation | 13,415 | 15,396 |
| Multiclient\tSeismic\tData | 1,026 | 793 |
| Goodwill | 15,605 | 15,487 |
| Intangible\tAssets | 4,569 | 4,654 |
| Other\tAssets | 2,749 | 2,203 |
|  | $68,005 | $66,904 |
| LIABILITIES\tAND\tEQUITY |  |  |
| Current\tLiabilities |  |  |
| Accounts\tpayable\tand\taccrued\tliabilities | 7,727 | 9,246 |
| Estimated\tliability\tfor\ttaxes\ton\tincome | 1,203 | 1,647 |
| Long-term\tdebt\t-\tcurrent\tportion | 3,011 | 1,244 |
| Short-term\tborrowings | 1,546 | 1,521 |
| Dividends\tpayable | 634 | 518 |
|  | 14,121 | 14,176 |
| Long-term\tDebt | 14,442 | 10,565 |
| Postretirement\tBenefits | 1,434 | 1,501 |
| Deferred\tTaxes | 1,075 | 1,296 |
| Other\tLiabilities | 1,028 | 1,317 |
|  | 32,100 | 28,855 |
| Equity |  |  |
| Common\tstock | 12,693 | 12,495 |
| Treasury\tstock | (13,372) | (11,772) |
| Retained\tearnings | 40,870 | 41,333 |
| Accumulated\tother\tcomprehensive\tloss | (4,558) | (4,206) |
| Schlumberger\tstockholders'\tequity | 35,633 | 37,850 |
| Noncontrolling\tinterests | 272 | 199 |
|  | 35,905 | 38,049 |
|  | $68,005 | $66,904 |

# CONSOLIDATED	STATEMENT	OF	CASH	FLOWS

| Year	ended	December	31, | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Cash\tflows\tfrom\toperating\tactivities: |  |  |  |
| Net\tincome | $2,135 | $5,506 | $6,774 |
| Add:\tLoss\tfrom\tdiscontinued\toperations | - | 205 | 69 |
| Adjustments\tto\treconcile\tnet\tincome\tto\tcash\tprovided\tby\toperating\tactivities: |  |  |  |
| Gain\ton\tformation\tof\tOneSubsea | - | - | (1,028) |
| Impairments\tand\tother\tcharges | 2,575 | 1,773 | 608 |
| Depreciation\tand\tamortization\t(1) | 4,078 | 4,094 | 3,879 |
| Pension\tand\tother\tpostretirement\tbenefits\texpense | 438 | 355 | 518 |
| Stock-based\tcompensation\texpense | 326 | 329 | 315 |
| Pension\tand\tother\tpostretirement\tbenefits\tfunding | (346) | (390) | (538) |
| Earnings\tof\tequity\tmethod\tinvestments,\tless\tdividends\treceived | (125) | (113) | (71) |
| Change\tin\tassets\tand\tliabilities:\t(2) |  |  |  |
| Decrease\t(increase)\tin\treceivables | 2,176 | (187) | (803) |
| Decrease\t(increase)\tin\tinventories | 625 | (36) | 188 |
| Decrease\tin\tother\tcurrent\tassets | 76 | 119 | 17 |
| Decrease\t(increase)\tin\tother\tassets | 16 | (134) | (78) |
| (Decrease)\tincrease\tin\taccounts\tpayable\tand\taccrued\tliabilities | (2,656) | (36) | 654 |
| (Decrease)\tincrease\tin\testimated\tliability\tfor\ttaxes\ton\tincome | (699) | 104 | 34 |
| Increase\t(decrease)\tin\tother\tliabilities | 24 | (79) | 60 |
| Other | 162 | (315) | 92 |
| NET\tCASH\tPROVIDED\tBY\tOPERATING\tACTIVITIES | 8,805 | 11,195 | 10,690 |
| Cash\tflows\tfrom\tinvesting\tactivities: |  |  |  |
| Capital\texpenditures | (2,410) | (3,976) | (3,943) |
| SPM\tinvestments | (953) | (740) | (902) |
| Multiclient\tseismic\tdata\tcapitalized | (486) | (321) | (394) |
| Business\tacquisitions\tand\tinvestments,\tnet\tof\tcash\tacquired | (443) | (1,008) | (1,210) |
| (Purchase)\tsale\tof\tinvestments,\tnet | (5,848) | 446 | (648) |
| Other | (112) | 19 | 218 |
| NET\tCASH\tUSED\tIN\tINVESTING\tACTIVITIES | (10,252) | (5,580) | (6,879) |
| Cash\tflows\tfrom\tfinancing\tactivities: |  |  |  |
| Dividends\tpaid | (2,419) | (1,968) | (1,608) |
| Proceeds\tfrom\temployee\tstock\tpurchase\tplan | 296 | 295 | 270 |
| Proceeds\tfrom\texercise\tof\tstock\toptions | 152 | 530 | 267 |
| Stock\trepurchase\tprogram | (2,182) | (4,678) | (2,596) |
| Proceeds\tfrom\tissuance\tof\tlong-term\tdebt | 9,565 | 2,289 | 4,554 |
| Repayment\tof\tlong-term\tdebt | (3,771) | (2,878) | (3,141) |
| Net\t(decrease)\tincrease\tin\tshort-term\tborrowings | (3) | 552 | 37 |
| Other | (264) | (38) | 18 |
| NET\tCASH\tPROVIDED\tBY\t(USED\tIN)\tFINANCING\tACTIVITIES | 1,374 | (5,896) | (2,199) |
| Cash\tflow\t(used\tin)\tprovided\tby\tdiscontinued\toperations\t-\toperating\tactivities | (233) | 24 | (2) |
| Cash\tflow\tused\tin\tdiscontinued\toperations\t-\tinvesting\tactivities | - | - | (28) |
| Cash\tflow\t(used\tin)\tprovided\tby\tdiscontinued\toperations | (233) | 24 | (30) |
| Net\t(decrease)\tincrease\tin\tcash\tbefore\ttranslation\teffect | (306) | (257) | 1,582 |
| Translation\teffect\ton\tcash | (31) | (85) | (15) |
| Cash,\tbeginning\tof\tperiod | 3,130 | 3,472 | 1,905 |
| Cash,\tend\tof\tperiod | $2,793 | $3,130 | $3,472 |

(2) Net	of	the	effect	of	business	acquisitions	and	divestitures.

# CONSOLIDATED	STATEMENT	OF	STOCKHOLDERS'	EQUITY

|  |  |  |  | Accumulated |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  |  |  |  | Other |  |  |
|  | Common\tStock |  | Retained | Comprehensive | Noncontrolling |  |
|  | Issued | In\tTreasury | Earnings | Loss | Interests | Total |
| Balance,\tJanuary\t1,\t2013 | $11,912 | $(6,160) | $32,887 | \t $(3,888) | \t $107 | \t $34,858 |
| Net\tincome |  |  | 6,732 |  | 42 | 6,774 |
| Currency\ttranslation\tadjustments |  |  |  | (151) |  | (151 |
| Changes\tin\tfair\tvalue\tof\tmarketable\tsecurities |  |  |  | 35 |  | 35 |
| Changes\tin\tfair\tvalue\tof\tcash\tflow\thedges |  |  |  | (1) |  | (1 |
| Pension\tand\tother\tpostretirement\tbenefit\tplans |  |  |  | 1,451 |  | 1,451 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | (44) | 311 |  |  |  | 267 |
| Vesting\tof\trestricted\tstock | (56) | 56 |  |  |  |  |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | 18 | 252 |  |  |  | 270 |
| Stock\trepurchase\tprogram |  | (2,596) |  |  |  | (2,596 |
| Stock-based\tcompensation\texpense | 315 |  |  |  |  | 315 |
| Dividends\tdeclared\t($1.25\tper\tshare) |  |  | (1,653) |  |  | (1,653 |
| Other | 47 | 2 |  |  | 17 | 66 |
| Balance,\tDecember\t31,\t2013 | 12,192 | (8,135) | 37,966 | (2,554) | 166 | 39,635 |
| Net\tincome |  |  | 5,438 |  | 68 | 5,506 |
| Currency\ttranslation\tadjustments |  |  |  | (463) |  | (463 |
| Changes\tin\tfair\tvalue\tof\tmarketable\tsecurities |  |  |  | (166) |  | (166 |
| Changes\tin\tfair\tvalue\tof\tcash\tflow\thedges |  |  |  | (125) |  | (125 |
| Pension\tand\tother\tpostretirement\tbenefit\tplans |  |  |  | (898) |  | (898 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | (26) | 556 |  |  |  | 530 |
| Vesting\tof\trestricted\tstock | (79) | 79 |  |  |  |  |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | 33 | 262 |  |  |  | 295 |
| Stock\trepurchase\tprogram |  | (4,678) |  |  |  | (4,678 |
| Stock-based\tcompensation\texpense | 329 |  |  |  |  | 329 |
| Dividends\tdeclared\t($1.60\tper\tshare) |  |  | (2,071) |  |  | (2,071 |
| Shares\tissued\tfor\tacquisition | 72 | 141 |  |  |  | 213 |
| Other | (26) | 3 |  |  | (35) | (58 |
| Balance,\tDecember\t31,\t2014 | 12,495 | (11,772) | 41,333 | (4,206) | 199 | 38,049 |
| Net\tincome |  |  | 2,072 |  | 63 | 2,135 |
| Currency\ttranslation\tadjustments |  |  |  | (522) |  | (522 |
| Changes\tin\tfair\tvalue\tof\tmarketable\tsecurities |  |  |  | (10) |  | (10 |
| Changes\tin\tfair\tvalue\tof\tcash\tflow\thedges |  |  |  | 57 |  | 57 |
| Pension\tand\tother\tpostretirement\tbenefit\tplans |  |  |  | 123 |  | 123 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | (38) | 190 |  |  |  | 152 |
| Vesting\tof\trestricted\tstock | (112) | 112 |  |  |  |  |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | 17 | 279 |  |  |  | 296 |
| Stock\trepurchase\tprogram |  | (2,182) |  |  |  | (2,182 |
| Stock-based\tcompensation\texpense | 326 |  |  |  |  | 326 |
| Dividends\tdeclared\t($2.00\tper\tshare) |  |  | (2,535) |  |  | (2,535 |
| Other | 5 | 1 |  |  | 10 | 16 |
| Balance,\tDecember\t31,\t2015 | $12,693 | \t$(13,372) | \t$40,870 | \t$(4,558) | \t$272 | \t$35,905 |

# SHARES	OF	COMMON	STOCK

|  |  |  | Shares |
| :--- | :--- | :--- | :--- |
|  | Issued | In\tTreasury | Outstanding |
| Balance,\tJanuary\t1,\t2013 | 1,434 | (106) | 1,328 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | - | 5 | 5 |
| Vesting\tof\trestricted\tstock | - | 1 | 1 |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | - | 4 | 4 |
| Stock\trepurchase\tprogram | - | (31) | (31) |
| Balance,\tDecember\t31,\t2013 | 1,434 | (127) | 1,307 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | - | 9 | 9 |
| Vesting\tof\trestricted\tstock | - | 1 | 1 |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | - | 4 | 4 |
| Shares\tissued\tfor\tacquisition | - | 2 | 2 |
| Stock\trepurchase\tprogram | - | (48) | (48) |
| Balance,\tDecember\t31,\t2014 | 1,434 | (159) | 1,275 |
| Shares\tsold\tto\toptionees,\tless\tshares\texchanged | - | 3 | 3 |
| Vesting\tof\trestricted\tstock | - | 1 | 1 |
| Shares\tissued\tunder\temployee\tstock\tpurchase\tplan | - | 4 | 4 |
| Stock\trepurchase\tprogram | - | (27) | (27) |
| Balance,\tDecember\t31,\t2015 | 1,434 | (178) | 1,256 |

# Notes	to	Consolidated	Financial	Statements

# 1.	Business	Description

Schlumberger	 Limited	 (Schlumberger	 N.V.,	 incorporated	 in	 Curaçao)	 and	 its	 consolidated	 subsidiaries	 (collectively,	 "Schlumberger")	 comprise the	 world's leading supplier	of	technology,	integrated	project	management	and	information	solutions	to	the	international	oil	and	gas	exploration	and	production	industry.

On	August	26,	2015,	Schlumberger	and	Cameron	International	Corporations	(Cameron)	jointly	announced	that	they	had	entered	into	a	definitive	merger	agreement	in which	Cameron	will	merge	with	an	indirect	wholly-owned	subsidiary	of	Schlumberger	in	a	stock	and	cash	transaction.	Cameron	designs,	manufactures,	markets	and services	equipment	used	by	the	oil	and	gas	industry	and	industrial	manufacturing	companies.	Under	the	terms	of	the	merger	agreement,	Cameron	shareholders	will	receive 0.716	shares	of	Schlumberger	common	stock	and	a	cash	payment	of	$14.44	in	exchange	for	each	Cameron	share	of	common	stock	outstanding.	Schlumberger	estimates that	it	will	issue	approximately	137	million	shares	of	its	common	stock	and	pay	cash	of	approximately	$2.8	billion	in	connection	with	this	transaction.	The	transaction remains	subject	to	certain	regulatory	approvals	and	customary	closing	conditions.	It	is	anticipated	that	the	closing	of	the	transaction	will	occur	in	the	first	quarter	of 2016.		Cameron	reported	revenue	of	$10.4	billion	for	the	year	ended	December	31,	2014.

# 2.	Summary	of	Accounting	Policies

The	Consolidated	Financial	Statements	of	Schlumberger	have	been	prepared	in	accordance	with	accounting	principles	generally	accepted	in	the	United	States	of	America.

# Use	of	Estimates

The	preparation	of	financial	statements	requires	management	to	make	estimates	and	assumptions	that	affect	the	reported	amounts	of	assets	and	liabilities,	disclosure	of contingent	 liabilities	 at	 the	 date	 of	 the	 financial	 statements	 and	 the	 reported	 amounts	 of	 revenue	 and	 expenses	 during	 the	 reporting	 period.	 On	 an	 ongoing	 basis, Schlumberger	 evaluates	 its	 estimates,	 including	 those	 related	 to	 collectibility	 of	 accounts	 receivable;	 recoverability	 of	 fixed	 assets,	 goodwill,	 intangible	 assets, Schlumberger	Production	Management	investments	and	investments	in	affiliates;	income	taxes;	multiclient	seismic	data;	contingencies	and	actuarial	assumptions	for employee	benefit	plans.	Schlumberger	bases	its	estimates	on	historical	experience	and	other	assumptions	that	are	believed	to	be	reasonable	under	the	circumstances,	the results	of	which	form	the	basis	for	making	judgments	about	the	carrying	values	of	assets	and	liabilities	that	are	not	readily	apparent	from	other	sources.	Actual	results	may differ	from	these	estimates	under	different	assumptions	or	conditions.

# Revenue	Recognition

Schlumberger	 recognizes	 revenue	 based	 upon	 purchase	 orders,	 contracts	 or	 other	 persuasive	 evidence	 of	 an	 arrangement	 with	 the	 customer	 that	 include	 fixed	 or determinable	prices	provided	that	collectibility	is	reasonably	assured.	Revenue	is	recognized	for	services	when	they	are	rendered.	Revenue	is	recognized	for	products	upon delivery	and	when	the	customer	assumes	the	risks	and	rewards	of	ownership.

Revenue	from	seismic	contract	services	performed	on	a	dayrate	basis	is	recognized	as	the	service	is	performed.	Revenue	from	other	services,	including	pre-funded multiclient	surveys,	is	recognized	as	the	seismic	data	is	acquired	and/or	processed	on	a	proportionate	basis	as	work	is	performed.	This	method	requires	revenue	to	be recognized	based	upon	quantifiable	measures	of	progress,	such	as	square	kilometers	acquired.	Multiclient	data	surveys	are	licensed	or	sold	to	customers	on	a	non- transferable	basis.	Revenue	from	sales	of	completed	multiclient	data	surveys	is	recognized	upon	obtaining	a	signed	licensing	agreement	and	providing	customers	with access	to	such	data.

Revenue	is	occasionally	generated	from	contractual	arrangements	that	include	multiple	deliverables.	Revenue	from	these	arrangements	is	recognized	as	each	item	is delivered	based	on	their	relative	fair	value,	provided	that	the	delivered	items	have	stand-alone	value	to	the	customer.

Revenue	derived	from	the	sale	of	licenses	of	Schlumberger	software	may	include	installation,	maintenance,	consulting	and	training	services.	If	services	are	not	essential	to the	functionality	of	the	software,	the	revenue	for	each	element	of	the	contract	is	recognized	separately	based	on	its	respective	vendor	specific	objective	evidence	of	fair value	when	all	of	the	following	conditions	are	met:	a	signed	contract	is	obtained,	delivery	has	occurred,	the	fee	is	fixed	or	determinable	and	collectibility	is	probable.

# Short-term	and	Fixed	Income	Investments

The	Consolidated	Balance	Sheet	reflects	the	Schlumberger	investment	portfolio	separated	between	current	and	long	term,	based	on	maturity.	Both	Short-term	investments and	Fixed	Income	Investments,	held	to	maturity	are	comprised	primarily	of	money	market

funds,	time	deposits,	certificates	of	deposit,	commercial	paper,	bonds	and	notes,	substantially	all	of	which	are	denominated	in	US	dollars.	Under	normal	circumstances Schlumberger	intends	to	hold	such	investments	until	maturity.	These	investments	are	stated	at	cost	plus	accrued	interest,	which	approximates	market.

For	purposes	of	the	Consolidated	Statement	of	Cash	Flows,	Schlumberger	does	not	consider	Short-term	investments	to	be	cash	equivalents.

Investments	in	companies	in	which	Schlumberger	does	not	have	a	controlling	financial	interest,	but	over	which	it	has	significant	influence	are	accounted	for	using	the equity	method.	Schlumberger's	share	of	the	after-tax	earnings	of	equity	method	investees	is	included	in	Interest	and	other	income.	Investments	in	privately	held	companies in	which	Schlumberger	does	not	have	the	ability	to	exercise	significant	influence	are	accounted	for	using	the	cost	method.	Investments	in	publicly	traded	companies	in which	Schlumberger	does	not	have	significant	influence	are	accounted	for	as	available-for-sale	marketable	securities.	These	marketable	securities	are	reported	at	fair	value, based	on	quoted	market	prices,	with	unrealized	gains	and	losses	reported	as	a	component	of	Accumulated	other	comprehensive	loss.	The	fair	value	of	these	marketable securities	was	$41	million	at	December	31,	2015	($91	million	at	December	31,	2014).	The	cost	basis	of	these	marketable	securities	was	$41	million	at	December	31,	2015 ($81	million	at	December	31,	2014)	after	reflecting	a	$40	million	other-than-temporary	impairment	charge	recorded	during	the	fourth	quarter	of	2015.

Equity	and	cost	method	investments	as	well	as	investments	in	publicly	traded	companies	are	classified	as	Investments	in	Affiliated	Companies	in	the	Consolidated	Balance Sheet.

The	multiclient	library	consists	of	completed	and	in-process	seismic	surveys	that	are	licensed	on	a	nonexclusive	basis.	Schlumberger	capitalizes	costs	directly	incurred	in acquiring	and	processing	the	multiclient	seismic	data.	Such	costs	are	charged	to	Cost	of	revenue	based	on	the	percentage	of	the	total	costs	to	the	estimated	total	revenue	that Schlumberger	expects	to	receive	from	the	sales	of	such	data.	However,	under	no	circumstance	will	an	individual	survey	carry	a	net	book	value	greater	than	a	4-year, straight-line	amortized	value.

The	carrying	value	of	the	multiclient	library	is	reviewed	for	impairment	annually	as	well	as	when	an	event	or	change	in	circumstance	indicating	impairment	may	have occurred.	Adjustments	to	the	carrying	value	are	recorded	when	it	is	determined	that	estimated	future	cash	flows,	which	involves	significant	judgment	on	the	part	of Schlumberger,	would	not	be	sufficient	to	recover	the	carrying	value	of	the	surveys.	Significant	adverse	changes	in	Schlumberger's	estimated	future	cash	flows	could	result in	impairment	charges	in	a	future	period.

# Schlumberger	Production	Management

Schlumberger	Production	Management	("SPM")	projects	are	focused	on	developing	and	co-managing	the	production	of	Schlumberger	customers'	assets	under	long-term agreements.	 	Schlumberger	will	invest	its	own	services,	products	and	in	some	cases	cash,	into	the	field	development	activities	and	operations.	 	Although	in	certain arrangements	Schlumberger	is	paid	for	a	portion	of	the	services	or	products	it	provides,	generally	Schlumberger	will	not	be	paid	at	the	time	of	providing	its	services	or upon	delivery	of	its	products.	Instead,	Schlumberger	is	compensated	based	upon	cash	flow	generated	or	on	a	fee-per-barrel	basis.		This	may	include	certain	arrangements whereby	Schlumberger	is	only	compensated	based	upon	incremental	production	it	helps	deliver	above	a	mutually	agreed	baseline.

Schlumberger	capitalizes	its	cash	investments	in	a	project	as	well	as	the	direct	costs	associated	with	providing	services	or	products	for	which	Schlumberger	will	be compensated	when	the	related	production	is	achieved.		Revenue	is	recognized	as	the	related	production	is	achieved.	These	capitalized	investments	are	amortized	to	the Consolidated	Statement	of	Income	as	the	related	oil	production	is	achieved	based	on	the	units	of	production	method,	whereby	each	unit	produced	is	assigned	a	pro-rata portion	of	the	unamortized	costs	based	on	estimated	total	production,	resulting	in	a	matching	of	revenue	with	the	applicable	costs.

The	 unamortized	 portion	 of	 Schlumberger's	 investments	 in	 SPM	 projects	 was	 approximately	 $1.829	 billion	 and	 $1.411	 billion	 at	 December	 31,	 2015	 and	 2014, respectively.		These	amounts	are	included	within	Other	Assets	in	Schlumberger's	Consolidated	Balance	Sheet.

# Concentration	of	Credit	Risk

Schlumberger's	assets	that	are	exposed	to	concentrations	of	credit	risk	consist	primarily	of	cash,	short-term	investments,	fixed	income	investments	held	to	maturity, receivables	from	clients	and	derivative	financial	instruments.	Schlumberger	places	its	cash,	short-term	investments	and	fixed	income	investments	held	to	maturity	with financial	institutions	and	corporations,	and	limits	the	amount	of	credit	exposure	with	any	one	of	them.	Schlumberger	regularly	evaluates	the	creditworthiness	of	the	issuers in	which	it	invests.	By	using	derivative	financial	instruments	to	hedge	certain	exposures,	Schlumberger	exposes	itself	to	some	credit	risk.	Schlumberger	minimizes	this credit	 risk	 by	 entering	 into	 transactions	 with	 high-quality	 counterparties,	 limiting	 the	 exposure	 to	 each	 counterparty	 and	 monitoring	 the	 financial	 condition	 of	 its counterparties.

Schlumberger	operates	in	more	than	85	countries	and	as	such,	its	accounts	receivable	are	spread	over	many	countries	and	customers.	As	of	December	31,	2015,	only	two countries	(Venezuela	and	Mexico)	individually	accounted	for	greater	than	10%	of	Schlumberger's	accounts	receivable	balance.		Schlumberger	has	experienced	delays	in payment	from	its	national	oil	company	customer	in	Venezuela.		Schlumberger	maintains	an	allowance	for	uncollectible	accounts	receivable	based	on	expected	collectibility and	performs	ongoing	credit	evaluations	of	its	customers'	financial	condition.		If	the	financial	condition	of	its	customers	were	to	deteriorate	resulting	in	an	impairment	of their	ability	to	make	payments,	adjustments	to	the	allowance	may	be	required.

# Earnings	per	Share

The	following	is	a	reconciliation	from	basic	to	diluted	earnings	per	share	from	continuing	operations	of	Schlumberger	for	each	of	the	last	three	years:

|  | Schlumberger	Income<br>from	Continuing<br>Operations | Average<br>Shares<br>Outstanding | Earnings	per	Share<br>from	Continuing<br>Operations |
| :--- | :--- | :--- | :--- |
| 2015: |  |  |  |
| Basic | $2,072 | 1,267 | $1.63 |
| Assumed\texercise\tof\tstock\toptions | - | 4 |  |
| Unvested\trestricted\tstock | - | 4 |  |
| Diluted | $2,072 | 1,275 | $1.63 |
| 2014: |  |  |  |
| Basic | $5,643 | 1,295 | $4.36 |
| Assumed\texercise\tof\tstock\toptions | - | 9 |  |
| Unvested\trestricted\tstock | - | 4 |  |
| Diluted | $5,643 | 1,308 | $4.31 |
| 2013: |  |  |  |
| Basic | $6,801 | 1,323 | $5.14 |
| Assumed\texercise\tof\tstock\toptions | - | 6 |  |
| Unvested\trestricted\tstock | - | 4 |  |
| Diluted | $6,801 | 1,333 | $5.10 |

Employee	stock	options	to	purchase	20	million,	5	million	and	12	million	shares	of	common	stock	at	December	31,	2015,	2014	and	2013,	respectively,	were	outstanding	but not	included	in	the	computation	of	diluted	earnings	per	share	because	the	option	exercise	price	was	greater	than	the	average	market	price	of	the	common	stock,	and therefore	the	effect	on	diluted	earnings	per	share	would	have	been	anti-dilutive.

# Recently	Issued	Accounting	Pronouncements

In	May	2014,	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	is	required	to	adopt	this	ASU on	January	1,	2018,	with	early	adoption	permitted	on	January	1,	2017,	and	does	not	expect	this	ASU	to	have	a	material	impact	on	its	consolidated	financial	statements.

In	November	2015,	the	FASB	issued	ASU	2015-17,	Balance	Sheet	Classification	of	Deferred	Taxes,	which	amends	existing	guidance	on	income	taxes	to	require	the classification	of	all	deferred	tax	assets	and	liabilities	as	non-current	on	the	balance	sheet.		Schlumberger	is	required	to	adopt	this	ASU	no	later	than	January	1,	2018,	with early	adoption	permitted,	and	the	guidance	may	be	applied	either	prospectively	or	retrospectively.		Schlumberger	does	not	expect	this	ASU	to	have	a	material	impact	on	its consolidated	financial	statements.

Schlumberger	recorded	the	following	charges	and	credits	in	continuing	operations	during	2015,	2014	and	2013:

· Schlumberger	decided	to	reduce	its	headcount	during	the	first	quarter	of	2015	as	a	result	of	the	severe	fall	in	activity	in	North	America,	combined	with	the impact	of	lower	international	activity	due	to	customer	budget	cuts	driven	by	lower	oil	prices.		Schlumberger	recorded	a	$390	million	charge	during	the	first quarter	associated	with	this	headcount	reduction	as	well	as	an	incentivized	leave	of	absence	program.		Based	on	the	activity	outlook	for	2016,	as	well	as	to further	streamline	its	support	structure,	Schlumberger	decided	to	further	reduce	its	headcount	and	expand	its	incentivized	leave	of	absence	program	during	the fourth	quarter	of	2015.		Schlumberger	recorded	an	additional	$530	million	charge	during	the	fourth	quarter	associated	with	these	actions.		Approximately	$360 million	of	the	costs	remained	unpaid	as	of	December	31,	2015.

· As	a	result	of	unfavorable	oil	and	gas	industry	market	conditions	that	have	continued	to	deteriorate	and	their	impact	on	the	activity	outlook,	Schlumberger determined	that	the	carrying	values	of	certain	assets	were	no	longer	recoverable	and	also	took	certain	decisions	that	resulted	in	the	following	impairment	and restructuring	charges	during	the	fourth	quarter	of	2015:

- $776	million	of	fixed	asset	impairments	primarily	related	to	underutilized	pressure	pumping	and	other	equipment	in	North	America,	as	well	as	certain lower-tier	drilling	rigs.		The	fair	value	of	these	assets	was	based	on	the	projected	present	value	of	future	cash	flows	that	these	assets	are	expected	to generate.

- $269	million	to	write-down	the	carrying	value	of	certain	inventory,	primarily	in	North	America.

- $182	million	to	reduce	the	carrying	value	of	an	investment	in	an	SPM	project	to	its	estimated	fair	value,	as	a	result	of	the	recent	decline	in	commodity prices	and	considering	this	project	is	approaching	the	end	of	its	contractual	term.	The	fair	value	of	this	investment	was	estimated	based	on	the	projected present	value	of	its	future	cash	flows.

- $177	million	associated	with	certain	of	Schlumberger's	owned	and	leased	facilities,	including	the	expected	sale	of	certain	properties	and	the	termination	of certain	leases.

- $77	million	relating	to	assets	that	are	no	longer	recoverable	as	a	result	of	geopolitical	issues	in	certain	countries	in	the	Middle	East.

- $41	million	relating	to	contract	termination	costs.

- $84	 million	 of	 other	 charges	 associated	 with	 current	 market	 conditions,	 including	 $40	 million relating to	 an	 other-than-temporary impairment	 of marketable	securities	and	$15	million	relating	to	the	impairment	of	an	equity-method	investment.

Because	certain	of	these	impairment	charges	were	estimated	based	on	the	projected	present	value	of	future	cash	flows,	which	included	unobservable	inputs	that required	significant	judgments,	additional	charges	may	be	required	in	future	periods	should	industry	conditions	worsen.

· In	February	2015,	the	Venezuelan	government	replaced	the	SICAD	II	exchange	rate	(described	in	further	detail	below)	with	a	new	foreign	exchange	market system	known	as	SIMADI.	The	SIMADI	exchange	rate	was	approximately	192	Venezuelan	Bolivares	fuertes	to	the	US	dollar	as	of	March	31,	2015.	As	a	result, Schlumberger	recorded	a	$49	million	devaluation	charge	during	the	first	quarter	of	2015,	reflecting	the	adoption	of	the	SIMADI	exchange	rate.

This	change	results	in	a	reduction	in	the	US	dollar	reported	amount	of	local	currency	denominated	revenues,	expenses	and,	consequently,	income	before	taxes and	net	income	in	Venezuela.	If	Schlumberger	had	applied	an	exchange	rate	of	192	Venezuelan	Bolivares	fuertes	to	the	US	dollar	throughout	2014,	it	would have	reduced	Schlumberger	earnings	by	approximately	$0.09	per	share.

The	following	is	a	summary	of	these	charges	and	credits,	all	of	which	were	classified	as	Impairments	&	other	in	the	Consolidated	Statement	of	Income:

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| Workforce\treductions | $920 | $107 | $813 |
| Fixed\tasset\timpairments | 776 | 141 | 635 |
| Inventory\twrite-downs | 269 | 27 | 242 |
| Impairment\tof\tSPM\tproject | 182 | 36 | 146 |
| Facility\tclosures | 177 | 37 | 140 |
| Geopolitical\tevents | 77 | - | 77 |
| Currency\tdevaluation\tloss\tin\tVenezuela | 49 | - | 49 |
| Contract\ttermination\tcosts | 41 | 2 | 39 |
| Other | 84 | 7 | 77 |
|  | $2,575 | $357 | $2,218 |

· Due	to	the	expectation	of	lower	exploration	spending	as	a	result	of	lower	commodity	prices,	during	the	fourth	quarter	of	2014,	Schlumberger	decided	to restructure	its	WesternGeco	marine	seismic	fleet	in	order	to	lower	its	operating	costs.		Three	previous-generation	acquisition	vessels	with	lower	towing	capacity and	higher	operating	costs	will	be	converted	to	source	vessels,	allowing	for	the	termination	of	two	third-party	source	vessel	leases	and	the	retirement	of	two owned	source	vessels.

As	a	result	of	this	restructuring,	Schlumberger	performed	an	impairment	test	and	determined	that	the	carrying	values	of	certain	of	its	vessels	exceeded	their respective	fair	values	by	$590	million.		This	impairment	charge	relates	to	the	six	Explorer-class	vessels	that	were	acquired	at	a	premium	in	the	2007	purchase	of Eastern	Echo	Holdings	Plc.	 	The	fair	value	of	these	vessels	was	estimated	primarily	based	on	the	replacement	cost	method,	which	was	largely	based	on unobservable	inputs	that	required	significant	judgments.

In	addition	to	the	$590	million	impairment	charge	relating	to	these	six	vessels,	Schlumberger	also	recorded	an	$85	million	impairment	charge	relating	to	a seismic	 intangible	 asset	 and	 $131	 million	 of	 other	 charges	 primarily	 related	 to	 lease	 termination	 costs	 and	 other	 seismic	 assets	 as	 a	 result	 of	 the restructuring.		Schlumberger	did	not	incur	any	significant	cash	expenditures	as	a	result	of	these	charges.

· During	2014,	Venezuela	enacted	certain	changes	to	its	foreign	exchange	system	such	that,	in	addition	to	the	official	rate	of	6.3	Venezuelan	Bolivares	fuertes	per US	dollar,	there	were	two	other	legal	exchange	rates	that	could	be	obtained	via	different	exchange	rate	mechanisms	at	the	time.		These	changes	included	the expansion	of	what	was	known	as	the	SICAD	I	auction	rate	and	the	introduction	of	the	SICAD	II	auction	process.		The	SICAD	I	and	SICAD	II	exchange	rates were	approximately	11	and	50	Venezuelan	Bolivares	fuertes	to	the	US	dollar,	respectively,	at	December	31,	2014.

Schlumberger	had	historically	applied	the	official	exchange	rate	to	remeasure	local	currency	transactions	and	balances	into	US	dollars.		Effective	December	31, 2014,	 Schlumberger	 concluded	 that	 it	 was	 appropriate	 to	 apply	 the	 SICAD	 II	 exchange	 rate	 as	 it	 believed	 that	 rate	 best	 represented	 the	 economics	 of Schlumberger's	business	activity	in	Venezuela.		As	a	result,	Schlumberger	recorded	a	$472	million	devaluation	charge	during	the	fourth	quarter	of	2014.

· In	response	to	lower	commodity	pricing	and	anticipated	lower	exploration	and	production	spending	in	2015,	Schlumberger	decided	during	the	fourth	quarter	of 2014	to	reduce	its	overall	headcount	primarily	to	better	align	with	anticipated	activity	levels	for	2015.		As	a	result	of	these	reductions,	Schlumberger	recorded	a charge	of	$296	million	in	the	fourth	quarter	of	2014.

· During	the	fourth	quarter	of	2014,	Schlumberger	determined	that,	primarily	as	a	result	of	the	recent	decline	in	commodity	prices,	the	carrying	value	of	its investment	in	an	SPM	development	project	in	the	Eagle	Ford	Shale	was	in	excess	of	its	fair	value.		Accordingly,	Schlumberger	recorded	a	$199	million impairment	charge.		The	fair	value	of	this	investment	was	estimated	based	on	the	projected	present	value	of	future	cash	flows.

The	following	is	a	summary	of	these	charges,	all	of	which	were	classified	as	Impairments	&	other	in	the	Consolidated	Statement	of	Income:

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| WesternGeco\trestructuring | $806 | $25 | $781 |
| Currency\tdevaluation\tloss\tin\tVenezuela | 472 | - | 472 |
| Workforce\treduction | 296 | 37 | 259 |
| Impairment\tof\tSPM\tproject | 199 | 72 | 127 |
|  | $1,773 | $134 | $1,639 |

· During	the	fourth	quarter,	Schlumberger	recorded	a	$152	million	provision	relating	to	accounts	receivable	from	a	client	in	Brazil	that	filed	for	bankruptcy, which	is	classified	in	Cost	of	revenue	in	the	Consolidated	Statement	of	Income.

●During	the	second	quarter,	Schlumberger	recorded	a	$1.028	billion	gain	as	a	result	of	the	deconsolidation	of	its	subsea	business	in	connection	with	the	formation of	the	OneSubsea	joint	venture	with	Cameron,	which	is	classified	as	Gain	on	formation	of	OneSubsea	in	the	Consolidated	Statement	of	Income.	Refer	to	Note	4 –	Acquisitions	for	further	details.

●During	the	second	quarter,	Schlumberger	recorded	a	$222	million	impairment	charge	relating	to	an	investment	in	a	company	involved	in	developing	drilling- related	technology	and	a	$142	million	impairment	charge	relating	to	an	investment	in	a	contract	drilling	business,	both	of	which	are	classified	in	Impairments	& other	in	the	Consolidated	Statement	of	Income.

●In	February	2013,	Venezuela's	currency	was	devalued	from	the	prior	exchange	rate	of	4.3	Bolivar	fuertes	per	US	dollar	to	6.3	Bolivar	fuertes	per	US	dollar.	As a	result,	Schlumberger	recorded	a	$92	million	devaluation	charge	during	the	first	quarter	of	2013,	which	is	classified	in	Impairments	&	other	in	the	Consolidated Statement	of	Income.

The	following	is	a	summary	of	these	charges	and	credits:

|  | Pretax | Tax | Net |
| :--- | :--- | :--- | :--- |
| Gain\ton\tformation\tof\tOneSubsea\tjoint\tventure | $(1,028) | $- | $(1,028) |
| Impairment\tof\tequity\tmethod\tinvestments | 364 | 19 | 345 |
| Provision\tfor\taccounts\treceivable | 152 | 30 | 122 |
| Currency\tdevaluation\tloss\tin\tVenezuela | 92 | - | 92 |
|  | $(420) | $49 | $(469) |

# 4.	Acquisitions

# Formation	of	OneSubsea	Joint	Venture

On	June	30,	2013,	Schlumberger	and	Cameron	completed	the	formation	of	OneSubsea,	a	joint	venture	to	manufacture	and	develop	products,	systems	and	services	for	the subsea	oil	and	gas	market.	Schlumberger	and	Cameron	each	contributed	all	of	their	respective	subsea	businesses	to	the	joint	venture	and	Schlumberger	made	a	$600	million cash	payment	to	Cameron.	Schlumberger	owns	40%	of	OneSubsea	and	accounts	for	this	investment	under	the	equity	method.	Schlumberger	recognized	a	pretax	and	after- tax	gain	of	$1.028	billion,	which	is	classified	as	Gain	on	formation	of	OneSubsea	in	the	Consolidated	Statement	of	Income,	as	a	result	of	the	deconsolidation	of	its	subsea business.	This	gain	is	equal	to	the	difference	between	the	fair	value	of	the	Schlumberger	subsea	business,	which	was	determined	based	on	the	present	value	of	its	estimated future	cash	flows,	and	its	carrying	value	at	the	time	of	closing.

Schlumberger	made	other	acquisitions	and	investments	for	cash	payments,	net	of	cash	acquired,	of	$443	million	during	2015,	$1.008	billion	during	2014,	and	$610	million during	2013.		Additionally,	during	2014	Schlumberger	issued	2.1	million	shares	of	its	common	stock,	valued	at	$213	million,	in	connection	with	an	acquisition.		None	of these	transactions	were	significant	to	Schlumberger's	consolidated	financial	statements,	either	individually	or	in	the	aggregate.

# 5.	Inventories

A	summary	of	inventories,	which	are	stated	at	the	lower	of	average	cost	or	market	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Raw\tmaterials\t&amp;\tfield\tmaterials | $2,300 | $2,666 |
| Work\tin\tprogress | 178 | 273 |
| Finished\tgoods | 1,278 | 1,689 |
|  | $3,756 | $4,628 |

# 6.	Fixed	Assets

A	summary	of	fixed	assets	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Land | $425 | $445 |
| Buildings\t&amp;\timprovements | 3,960 | 3,733 |
| Machinery\t&amp;\tequipment | 31,885 | 31,937 |
| Seismic\tvessels | 850 | 849 |
|  | 37,120 | 36,964 |
| Less:\tAccumulated\tdepreciation | 23,705 | 21,568 |
|  | $13,415 | $15,396 |

The	estimated	useful	lives	of	Buildings	&	improvements	are	primarily	25	to	30	years.	The	estimated	useful	lives	of	Machinery	&	equipment	are	primarily	5	to	10	years. Seismic	vessels	are	depreciated	over	periods	ranging	from	20	to	30	years.

The	change	in	the	carrying	amount	of	multiclient	seismic	data	is	as	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Balance\tat\tbeginning\tof\tyear | $793 | $667 |
| Capitalized\tin\tperiod | 486 | 321 |
| Charged\tto\texpense | (253) | (195) |
|  | $1,026 | $793 |

# 8.	Goodwill

The	changes	in	the	carrying	amount	of	goodwill	by	reporting	unit	were	as	follows:

|  | Reservoir |  |  |  |
| :--- | :--- | :--- | :--- | :--- |
|  | Characterization | Drilling | Production | Total |
| Balance,\tJanuary\t1,\t2014 | $3,737 | $8,315 | $2,654 | $14,706 |
| Acquisitions | 15 | 271 | 551 | 837 |
| Reallocation | 83 | (83) | - | - |
| Impact\tof\tchanges\tin\texchange\trates | (23) | (15) | (18) | (56) |
| Balance,\tDecember\t31,\t2014 | 3,812 | 8,488 | 3,187 | 15,487 |
| Acquisitions | 38 | 130 | 76 | 244 |
| Impact\tof\tchanges\tin\texchange\trates | (52) | (34) | (40) | (126) |
| Balance,\tDecember\t31,\t2015 | $3,798 | $8,584 | $3,223 | $15,605 |

# 9.	Intangible	Assets

A	summary	of	intangible	assets	follows:

|  |  | 2015 |  |  | 2014 |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Gross | Accumulated | Net\tBook | Gross | Accumulated | Net\tBook |
|  | Book\tValue | Amortization | Value | Book\tValue | Amortization | Value |
| Customer\tRelationships | $2,489 | $645 | $1,844 | 2,531 | 523 | $2,008 |
| Technology/Technical\tKnow-How | 1,864 | 653 | 1,211 | 1,747 | 535 | 1,212 |
| Tradenames | 1,625 | 367 | 1,258 | 1,641 | 319 | 1,322 |
| Other | 513 | 257 | 256 | 380 | 268 | 112 |
|  | $6,491 | $1,922 | $4,569 | $6,299 | $1,645 | $4,654 |

Customer	relationships	are	generally	amortized	over	periods	ranging	from	18	to	28	years,	technology\technical	know-how	are	generally	amortized	over	periods	ranging from	10	to	18	years,	and	tradenames	are	generally	amortized	over	periods	ranging	from	15	to	30	years.

# 10.	Long-term	Debt	and	Debt	Facility	Agreements

Long-term	Debt	consists	of	the	following:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| 4.00%\tSenior\tNotes\tdue\t2025\t(1) | $1,741 | $- |
| 3.30%\tSenior\tNotes\tdue\t2021 | 1,597 | 1,597 |
| 3.00%\tSenior\tNotes\tdue\t2020\t(1) | 1,591 | - |
| 3.65%\tSenior\tNotes\tdue\t2023 | 1,496 | 1,495 |
| 2.35%\tSenior\tNotes\tdue\t2018\t(1) | 1,297 | - |
| 4.20%\tSenior\tNotes\tdue\t2021 | 1,100 | 1,100 |
| 1.25%\tSenior\tNotes\tdue\t2017 | 1,000 | 1,000 |
| 2.40%\tSenior\tNotes\tdue\t2022 | 999 | 999 |
| 3.63%\tSenior\tNotes\tdue\t2022\t(1) | 845 | - |
| 1.50%\tGuaranteed\tNotes\tdue\t2019\t(2) | 566 | 628 |
| 1.90%\tSenior\tNotes\tdue\t2017\t(1) | 499 | - |
| 1.95%\tSenior\tNotes\tdue\t2016 | - | 1,100 |
| 2.65%\tSenior\tNotes\tdue\t2016\t(3) | - | 500 |
| Commercial\tpaper\tborrowings | 1,000 | 1,538 |
| Other | 711 | 608 |
|  | $14,442 | $10,565 |

(1)			If	the	closing	of	the	Cameron	merger	does	not	occur	on	or	prior	to	August	25,	2016	(which	may	be	extended	to	November	25,	2016	under	certain	circumstances)	or	if the	Cameron	merger	agreement	 is	 terminated	at	any	 time	prior	 thereto,	 these	notes	will	be	subject	 to	a	special	mandatory	 redemption.	The	 special	 mandatory redemption	price	will	be	equal	to	101%	of	the	aggregate	principal	amount	of	the	notes	that	are	redeemed,	plus	accrued	and	unpaid	interest.

(2)			Schlumberger	maintains	a	€5.0	billion	Guaranteed	Euro	Medium	Term	Note	program	that	provides	for	the	issuance	of	various	types	of	debt	instruments	such	as	fixed or	floating	rate	notes	in	euro,	US	dollar	or	other	currencies.	Schlumberger	issued	€0.5	billion	1.50%	Guaranteed	Notes	due	2019	under	this	program	in	the	fourth quarter	of	2013.		Schlumberger	entered	into	agreements	to	swap	these	euro	notes	for	US	dollars	on	the	date	of	issue	until	maturity,	effectively	making	this	a	US	dollar denominated	debt	on	which	Schlumberger	will	pay	interest	in	US	dollars	at	a	rate	equal	to	three-month	LIBOR	plus	approximately	64	basis	points.

(3)			Schlumberger	entered	into	agreements	to	swap	these	dollar	notes	for	euros	on	the	date	of	issue	until	maturity,	effectively	making	this	a	euro-denominated	debt	on	which Schlumberger	pays	interest	at	a	rate	of	2.39%.

Schlumberger	Limited	fully	and	unconditionally	guarantees	the	securities	issued	by	certain	of	its	subsidiaries,	including	securities	issued	by	Schlumberger	Investment	SA, a	wholly-owned	finance	subsidiary	of	Schlumberger.

At	December	31,	2015,	Schlumberger	had	separate	committed	debt	facility	agreements	aggregating	$3.8	billion	with	commercial	banks,	of	which	$1.4	billion	was	available and	unused.	This	included	$3.5	billion	of	committed	facilities	which	support	commercial	paper	programs	in	the	United	States	and	Europe,	of	which	$250	million	matures	in July	2016,	$1.75	billion	matures	in	July	2018,	and	$1.5	billion	matures	in	November	2018.	Interest	rates	and	other	terms	of	borrowing	under	these	lines	of	credit	vary	from country	to	country.

Commercial	paper	borrowings	are	classified	as	long-term	debt	to	the	extent	of	their	backup	by	available	and	unused	committed	credit	facilities	maturing	in	more	than	one year	and	to	the	extent	it	is	Schlumberger's	intent	to	maintain	these	obligations	for	longer	than	one	year.	Borrowings	under	the	commercial	paper	program	at	December	31, 2015	were	$2.4	billion,	of	which	$1.0	billion	was	classified	within	Long-term	debt	and	$1.4	billion	was	classified	in	Long-term	debt	–	current	portion	in	the	Consolidated Balance	Sheet.		At	December	31,	2014,	borrowings	under	the	commercial	paper	program	were	$1.5	million,	all	of	which	were	classified	within	Long-term	 debt	in	the Consolidated	Balance	Sheet.

The	weighted	average	interest	rate	on	variable	rate	debt	as	of	December	31,	2015	was	1.0%.

The	fair	value	of	Schlumberger's	Long-term	Debt	at	December	31,	2015	and	December	31,	2014	was	$14.4	billion	and	$10.7	billion,	respectively,	and	was	estimated	based on	quoted	market	prices.

# 11.	Derivative	Instruments	and	Hedging	Activities

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

# Interest	Rate	Risk

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	the	fourth	quarter	of	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	December	31,	2015,	Schlumberger	had	fixed	rate	debt	aggregating	$13.8	billion	and	variable	rate	debt	aggregating	$5.2	billion,	after	taking	into	account	the	effect	of the	swap.

Short-term	investments	and	Fixed	income	investments,	held	to	maturity,	totaled	$10.7	billion	at	December	31,	2015.	The	carrying	value	of	these	investments	approximated fair	value,	which	was	estimated	using	quoted	market	prices	for	those	or	similar	investments.

# Foreign	Currency	Exchange	Rate	Risk

As	 a	 multinational	 company,	 Schlumberger	 conducts	 its	 business	 in	 approximately	 85	 countries.	 Schlumberger's	 functional	 currency	 is	 primarily	 the	 US	 dollar. Approximately	83%	of	Schlumberger's	revenues	in	2015	was	denominated	in	US	dollars.	However,	outside	the	United	States,	a	significant	portion	of	Schlumberger's expenses	is	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	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	which	is	denominated	in currencies	other	than	the	functional	currency.	Schlumberger	uses	foreign	currency	forward	contracts	and	foreign	currency	options	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	of	changes	in	the	fair	value	of	hedging	instruments,	if	any,	is	recorded directly	to	earnings.

At	December	31,	2015,	Schlumberger	recognized	a	cumulative	net	$39	million	loss	in	Accumulated	other	comprehensive	loss	relating	to	revaluation	of	foreign	currency forward	contracts	and	foreign	currency	options	designated	as	cash	flow	hedges,	the	majority	of	which	is	expected	to	be	reclassified	into	earnings	within	the	next	12	months.

Schlumberger	is	exposed	to	changes	in	the	fair	value	of	assets	and	liabilities	which	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	are	recorded	on	the	Consolidated	Balance	Sheet	and	changes	in	the	fair	value	are recognized	in	the	Consolidated	Statement	of	Income	as	are	changes	in	fair	value	of	the	hedged	item.		Transaction	losses	of	$27	million,	$67	million	and	$24	million,	net	of related	hedging	activities,	were	recognized	in	the	Consolidated	Statement	of	Income	in	2015,	2014	and	2013,	respectively.

At	December	31,	2015,	contracts	were	outstanding	for	the	US	dollar	equivalent	of	$3.8	billion	in	various	foreign	currencies,	of	which	$1.2	billion	relates	to	hedges	of	debt denominated	in	currencies	other	than	the	functional	currency.

# The	fair	values	of	outstanding	derivative	instruments	are	summarized	as	follows:

|  | Fair	Value	of	Derivatives<br>2015 | 2014 | Consolidated	Balance	Sheet	Classification |
| :--- | :--- | :--- | :--- |
| Derivative\tAssets |  |  |  |
| Derivatives\tdesignated\tas\thedges: |  |  |  |
| Foreign\texchange\tcontracts | $4 | \t$3 | Other\tcurrent\tassets |
| Foreign\texchange\tcontracts | 6 | 32 | Other\tAssets |
|  | $10 | \t$35 |  |
| Derivatives\tnot\tdesignated\tas\thedges:\nForeign\texchange\tcontracts | $15 | \t$5 | Other\tcurrent\tassets |
|  | $25 | \t$40 |  |
| Derivative\tLiabilities |  |  |  |
| Derivatives\tdesignated\tas\thedges: |  |  |  |
| Foreign\texchange\tcontracts | $37 | \t$80 | Accounts\tpayable\tand\taccrued\tliabilities |
| Foreign\texchange\tcontracts | 3 | 105 | Other\tLiabilities |
| Cross\tcurrency\tswap | 22 | 42 | Other\tLiabilities |
|  | $62 | \t$227 |  |
| Derivatives\tnot\tdesignated\tas\thedges:\nForeign\texchange\tcontracts | $25 | \t$28 | Accounts\tpayable\tand\taccrued\tliabilities |
|  | $87 | \t$255 |  |

The	fair	value	of	all	outstanding	derivatives	is	determined	using	a	model	with	inputs	that	are	observable	in	the	market	or	can	be	derived	from	or	corroborated	by	observable data.

The	effect	of	derivative	instruments	designated	as	fair	value	hedges	and	those	not	designated	as	hedges	on	the	Consolidated	Statement	of	Income	was	as	follows:

|  | 2015 | 2014 | 2013 | of	Income	Classification |
| :--- | :--- | :--- | :--- | :--- |
| Derivatives\tdesignated\tas\tfair\tvalue\thedges:\nCross\tcurrency\tswap | $(64) | \t$(82) | \t$15 | Interest\texpense |
| Derivatives\tnot\tdesignated\tas\thedges:\nForeign\texchange\tcontracts | $(154) | \t$(95) | \t$(2) | Cost\tof\trevenue |

# 12.	Stockholders'	Equity

Schlumberger	is	authorized	to	issue	4,500,000,000	shares	of	common	stock,	par	value	$0.01	per	share,	of	which	1,256,367,980	and	1,275,312,404	shares	were	outstanding on	December	31,	2015	and	2014,	respectively.	Holders	of	common	stock	are	entitled	to	one	vote	for	each	share	of	stock	held.	Schlumberger	is	also	authorized	to	issue 200,000,000	shares	of	preferred	stock,	par	value	$0.01	per	share,	which	may	be	issued	in	series	with	terms	and	conditions	determined	by	the	Board	of	Directors.	No	shares of	preferred	stock	have	been	issued.

# Accumulated	Other	Comprehensive	Loss	consists	of	the	following:

|  |  | Unrealized |  | Pension	and |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Currency | Gain/(Loss)\ton |  | Other |  |
|  | Translation | Marketable | Cash\tFlow | Postretirement |  |
|  | Adjustments | Securities | Hedges | Benefit\tPlans | Total |
| Balance,\tJanuary\t1,\t2013 | $(917) | \t$141 | \t$30 | \t$(3,142) | \t$(3,888) |
| Other\tcomprehensive\tincome\t(loss)\tbefore |  |  |  |  |  |
| reclassifications | (151) | 35 | 49 | 1,328 | 1,261 |
| Amounts\treclassified\tfrom\taccumulated\tother |  |  |  |  |  |
| comprehensive\tloss | - | - | (50) | 425 | 375 |
| Income\ttaxes | - | - | - | (302) | (302) |
| Balance,\tDecember\t31,\t2013 | (1,068) | 176 | 29 | (1,691) | (2,554) |
| Other\tcomprehensive\tincome\t(loss)\tbefore |  |  |  |  |  |
| reclassifications | (463) | (166) | (238) | (1,285) | (2,152) |
| Amounts\treclassified\tfrom\taccumulated\tother |  |  |  |  |  |
| comprehensive\tloss | - | - | 113 | 305 | 418 |
| Income\ttaxes | - | - |  | 82 | 82 |
| Balance,\tDecember\t31,\t2014 | (1,531) | 10 | (96) | (2,589) | (4,206) |
| Other\tcomprehensive\tincome\t(loss)\tbefore |  |  |  |  |  |
| reclassifications | (522) | (50) | (178) | (210) | (960) |
| Amounts\treclassified\tfrom\taccumulated\tother |  |  |  |  |  |
| comprehensive\tloss | - | 40 | 235 | 407 | 682 |
| Income\ttaxes | - | - | - | (74) | (74) |
| Balance,\tDecember\t31,\t2015 | $(2,053) | \t$- | \t$(39) | \t$(2,466) | \t$(4,558) |

# 13.	Stock-based	Compensation	Plans

Schlumberger	has	three	types	of	stock-based	compensation	programs:	(i)	stock	options,	(ii)	a	restricted	stock,	restricted	stock	unit	and	performance	share	unit	program (collectively	referred	to	as	"restricted	stock")	and	(iii)	a	discounted	stock	purchase	plan	("DSPP").

# Stock	Options

Key	employees	are	granted	stock	options	under	Schlumberger	stock	option	plans.	For	all	stock	options	granted,	the	exercise	price	equals	the	average	of	the	high	and	low sales	prices	of	Schlumberger	stock	on	the	date	of	grant;	the	maximum	term	is	ten	years,	and	the	options	generally	vest	in	increments	over	five	years.

The	fair	value	of	each	stock	option	grant	was	estimated	on	the	date	of	grant	using	the	Black-Scholes	option-pricing	model	with	the	following	weighted-average	assumptions and	resulting	weighted-average	fair	value	per	share:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Dividend\tyield | 2.3% | 1.6% | 1.7% |
| Expected\tvolatility | 36% | 37% | 38% |
| Risk\tfree\tinterest\trate | 1.7% | 2.2% | 1.2% |
| Expected\toption\tlife\tin\tyears | 7.0 | 7.0 | 7.0 |
| Weighted-average\tfair\tvalue\tper\tshare | $25.96 | \t$34.20 | $23.93 |

# The	following	table	summarizes	information	concerning	options	outstanding	and	options	exercisable	as	of	December	31,	2015:

(Shares	stated	in	thousands)

|  |  | average |  |  |  |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  |  | remaining | Weighted- |  | Weighted- |
|  | Options | contractual\tlife | average | Options | average |
| Exercise\tprices\trange | Outstanding | (in\tyears) | exercise\tprice | Exercisable | exercise\tprice |
| $37.85\t-\t$67.87 | 4,882 | 2.5 | $51.61 | 4,857 | $51.53 |
| $68.51\t-\t$70.93 | 7,499 | 5.6 | $69.81 | 4,873 | $69.26 |
| $72.11\t-\t$78.31 | 8,927 | 7.0 | $73.56 | 3,206 | $72.51 |
| $83.88\t-\t$84.93 | 7,585 | 4.4 | $84.17 | 6,514 | $84.21 |
| $88.61\t-\t$114.83 | 12,194 | 8.0 | $95.48 | 2,920 | $96.55 |
|  | 41,087 | 6.1 | $78.73 | 22,370 | $73.79 |

The	weighted	average	remaining	contractual	life	of	stock	options	exercisable	as	of	December	31,	2015	was	4.4	years.

The	following	table	summarizes	stock	option	activity	during	the	years	ended	December	31,	2015,	2014	and	2013:

The	aggregate	intrinsic	value	of	both	stock	options	outstanding	and	stock	options	exercisable	as	of	December	31,	2015	was	$93	million,	respectively.

The	total	intrinsic	value	of	options	exercised	during	the	years	ended	December	31,	2015,	2014	and	2013	was	$62	million,	$314	million	and	$176	million,	respectively.

# Restricted	Stock

Schlumberger	grants	performance	share	units	to	certain	executives.		The	number	of	shares	earned	is	determined	at	the	end	of	each	performance	period,	which	is	generally three	 years,	 based	 on	 Schlumberger's	 achievement	 of	 a	 predefined	 return	 on	 capital	 employed	 ("ROCE"),	 as	 defined	 in	 the	 underlying	 performance	 share	 unit agreement.		In	the	event	the	ROCE	exceeds	the	predefined	target,	shares	for	up	to	the	maximum	of	250%	of	the	target	award	may	be	granted.		In	the	event	the	ROCE	falls below	the	predefined	target,	a	reduced	number	of	shares	may	be	granted.		If	the	ROCE	falls	below	the	threshold	award	performance	level,	no	shares	will	be	granted.		As	of December	31,	2015,	performance	share	units	of	0.9	million	were	outstanding	based	on	the	achievement	of	100%	of	target.

All	other	restricted	stock	awards	generally	vest	at	the	end	of	three	years.

Restricted	stock	awards	do	not	pay	dividends	or	allow	voting	rights	during	the	performance	period.		Accordingly,	the	fair	value	of	the	restricted	stock	award	is	the	quoted market	price	of	Schlumberger's	stock	on	the	date	of	grant	less	the	present	value	of	the	expected	dividends	not	received	during	the	vesting	period.

The	following	table	summarizes	information	about	all	restricted	stock	transactions:

|  | Restricted | Grant	Date | Restricted | Grant	Date | Restricted | Grant	Date |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Stock | Fair\tValue | Stock | Fair\tValue | Stock | Fair\tValue |
| Unvested\tat\tbeginning\tof\tyear | 4,138 | $80.80 | 4,171 | $76.01 | 3,566 | $73.62 |
| Granted | 1,254 | $82.37 | 1,341 | $96.08 | 1,949 | $75.65 |
| Vested | (1,495) | $71.30 | (1,186) | $81.59 | (958) | $66.98 |
| Forfeited | (326) | $83.86 | (188) | $78.68 | (386) | $74.53 |
| Unvested\tat\tyear-end | 3,571 | $85.04 | 4,138 | $80.80 | 4,171 | $76.01 |

# Discounted	Stock	Purchase	Plan

Under	the	terms	of	the	DSPP,	employees	can	choose	to	have	a	portion	of	their	earnings	withheld,	subject	to	certain	restrictions,	to	purchase	Schlumberger	common	stock. The	purchase	price	of	the	stock	is	92.5%	of	the	lower	of	the	stock	price	at	the	beginning	or	end	of	the	plan	period	at	six-month	intervals.

The	fair	value	of	the	employees'	purchase	rights	under	the	DSPP	was	estimated	using	the	Black-Scholes	model	with	the	following	assumptions	and	resulting	weighted average	fair	value	per	share:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Dividend\tyield | 2.3% | 1.6% | 1.7% |
| Expected\tvolatility | 27% | 19% | 24% |
| Risk\tfree\tinterest\trate | 0.2% | 0.1% | 0.1% |
| Weighted-average\tfair\tvalue\tper\tshare | $12.45 | \t$12.67 | $9.91 |

# Total	Stock-based	Compensation	Expense

The	following	summarizes	stock-based	compensation	expense	recognized	in	income:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Stock\toptions | $176 | \t$177 | $165 |
| Restricted\tstock | 107 | 114 | 110 |
| DSPP | 43 | 38 | 40 |
|  | $326 | \t$329 | $315 |

At	December	31,	2015,	there	was	$480	million	of	total	unrecognized	compensation	cost	related	to	nonvested	stock-based	compensation	arrangements,	of	which	$215 million	is	expected	to	be	recognized	in	2016,	$137	million	in	2017,	$80	million	in	2018,	$40	million	in	2019	and	$8	million	in	2020.

As	 of	 December	 31,	 2015,	 approximately	 27	 million shares	 of	 Schlumberger	 common stock	 were	 available for future	 grants	 under	 Schlumberger's stock-based compensation	programs.

Schlumberger	operates	in	more	than	100	tax	jurisdictions,	where	statutory	tax	rates	generally	vary	from	0%	to	40%.

Income	from	continuing	operations	before	taxes	subject	to	United	States	and	non-United	States	income	taxes	for	each	of	the	three	years	ended	December	31,	were	as follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| United\tStates | $(691) | $1,990 | $1,904 |
| Outside\tUnited\tStates | 3,572 | 5,649 | 6,787 |
|  | $2,881 | $7,639 | $8,691 |

Schlumberger	recorded	pretax	charges	of	$2.575	billion	in	2015	($883	million	in	the	US	and	$1.692	billion	outside	of	the	US).	Schlumberger	recorded	pretax	charges	of $1.773	billion	in	2014	($289	million	in	the	US	and	$1.484	billion	outside	the	US)	and	net	pretax	credits	of	$420	million	in	2013	($53	million	of	charges	in	the	US	and	$473 million	of	net	credits	outside	the	US).	These	charges	and	credits	are	included	in	the	table	above	and	are	more	fully	described	in	Note	3	–	Charges	and	Credits.

The	components	of	net	deferred	tax	assets	(liabilities)	were	as	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Postretirement\tbenefits | $266 | \t$327 |
| Intangible\tassets | (1,418) | (1,435) |
| Investments\tin\tnon-US\tsubsidiaries | (152) | (227) |
| Fixed\tassets,\tnet | (176) | (331) |
| Inventories | 159 | 112 |
| Other,\tnet | 454 | 402 |
|  | $(867) | \t$(1,152) |

The	above	deferred	tax	balances	at	December	31,	2015	and	2014	were	net	of	valuation	allowances	relating	to	net	operating	losses	in	certain	countries	of	$162	million	and $190	million,	respectively.		Schlumberger	generally	does	not	provide	income	taxes	relating	to	undistributed	earnings,	as	the	earnings	either	would	not	be	taxable	when remitted	or	are	considered	to	be	indefinitely	reinvested.

The	components	of	Taxes	on	income	were	as	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Current: |  |  |  |
| United\tStates-Federal | $90 | \t$718 | \t$682 |
| United\tStates-State | 12 | 51 | 60 |
| Outside\tUnited\tStates | 1,085 | 1,380 | 1,211 |
|  | 1,187 | 2,149 | 1,953 |
| Deferred: |  |  |  |
| United\tStates-Federal | $(356) | \t$(194) | \t$(109) |
| United\tStates-State | (19) | (9) | (4) |
| Outside\tUnited\tStates | (52) | (12) | 34 |
| Valuation\tallowance | (14) | (6) | (26) |
|  | (441) | (221) | (105) |
|  | $746 | \t$1,928 | \t$1,848 |

A	reconciliation	of	the	United	States	statutory	federal	tax	rate	(35%)	to	the	consolidated	effective	tax	rate	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| US\tfederal\tstatutory\trate | 35% | 35% | 35% |
| Non-US\tincome\ttaxed\tat\tdifferent\trates | (13) | (11) | (12) |
| Charges\tand\tcredits\t(See\tNote\t3) | 6 | 3 | (2) |
| Other | (2) | (2) | - |
|  | 26% | 25% | 21% |

A	number	of	the	jurisdictions	in	which	Schlumberger	operates	have	tax	laws	that	are	not	fully	defined	and	are	evolving.	Schlumberger's	tax	filings	are	subject	to	regular audit	by	the	tax	authorities.	These	audits	may	result	in	assessments	for	additional	taxes	which	are	resolved	with	the	authorities	or,	potentially,	through	the	courts.		Tax liabilities	are	recorded	based	on	estimates	of	additional	taxes	that	will	be	due	upon	the	conclusion	of	these	audits.		Due	to	the	uncertain	and	complex	application	of	tax regulations,	the	ultimate	resolution	of	audits	may	result	in	liabilities	which	could	be	materially	different	from	these	estimates.

A	reconciliation	of	the	beginning	and	ending	amount	of	liabilities	associated	with	uncertain	tax	positions	for	the	years	ended	December	31,	2015,	2014	and	2013	is	as follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Balance\tat\tbeginning\tof\tyear | $1,402 | \t$1,452 | \t$1,453 |
| Additions\tbased\ton\ttax\tpositions\trelated\tto\tthe\tcurrent\tyear | 140 | 154 | 146 |
| Additions\tfor\ttax\tpositions\tof\tprior\tyears | 136 | 96 | 109 |
| Additions\trelated\tto\tacquisitions | 5 | 43 | - |
| Impact\tof\tchanges\tin\texchange\trates | (78) | (62) | (47) |
| Settlements\twith\ttax\tauthorities | (99) | (27) | (64) |
| Reductions\tfor\ttax\tpositions\tof\tprior\tyears | (203) | (212) | (109) |
| Reductions\tdue\tto\tthe\tlapse\tof\tthe\tapplicable\tstatute\tof\tlimitations | (18) | (42) | (36) |
| Balance\tat\tend\tof\tyear | $1,285 | \t$1,402 | \t$1,452 |

The	 amounts	 above	 exclude	 accrued	 interest	 and	 penalties	 of	 $176	 million, $243	 million and $253	 million at	 December 31, 2015,	 2014 and 2013, respectively.		Schlumberger	classifies	interest	and	penalties	relating	to	uncertain	tax	positions	within	Taxes	on	income	in	the	Consolidated	Statement	of	Income.

The	following	table	summarizes	the	tax	years	that	are	either	currently	under	audit	or	remain	open	and	subject	to	examination	by	the	tax	authorities	in	the	most	significant jurisdictions	in	which	Schlumberger	operates:

In	certain	of	the	jurisdictions	noted	above,	Schlumberger	operates	through	more	than	one	legal	entity,	each	of	which	may	have	different	open	years	subject	to	examination. The	table	above	presents	the	open	years	subject	to	examination	for	the	most	material	of	the	legal	entities	in	each	jurisdiction.	Additionally,	it	is	important	to	note	that	tax years	are	technically	not	closed	until	the	statute	of	limitations	in	each	jurisdiction	expires.	In	the	jurisdictions	noted	above,	the	statute	of	limitations	can	extend	beyond	the open	years	subject	to	examination.

# 15.	Leases	and	Lease	Commitments

Future	minimum	rental	commitments	under	noncancelable	operating	leases	for	each	of	the	next	five	years	are	as	follows:

| 2016 | $261 |
| :--- | :--- |
| 2017 | 205 |
| 2018 | 162 |
| 2019 | 145 |
| 2020 | 129 |
| Thereafter | 526 |

# 16.	Contingencies

Schlumberger	and	its	subsidiaries	are	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	pending	legal	proceeding	is	remote.	However,	litigation	is	inherently	uncertain and	it	is	not	possible	to	predict	the	disposition	of	any	of	these	proceedings.

# 17.	Segment	Information

Schlumberger's	segments	are	as	follows:

●Reservoir	 Characterization	 Group	 –	 Consists	 of the	 principal	 Technologies	 involved	 in	 finding and	 defining	 hydrocarbon resources.	 These include WesternGeco,	Wireline,	Testing	Services,	Software	Integrated	Solutions	and	Integrated	Services	Management.

●Drilling	Group	–	Consists	of	the	principal	Technologies	involved	in	the	drilling	and	positioning	of	oil	and	gas	wells.		These	include	Bits	&	Drilling	Tools,	M-I SWACO,	Drilling	&	Measurements,	Land	Rigs	and	Integrated	Drilling	Services.

●Production	Group	 –	 Consists	 of the	 principal	Technologies	 involved	 in	 the	 lifetime	 production	 of	 oil	 and	 gas	 reservoirs.	These include	Well	 Services, Completions,	Artificial	Lift,	Well	Intervention,	Water	Services,	Integrated	Production	Services	and	Schlumberger	Production	Management.

Financial	information	for	the	years	ended	December	31,	2015,	2014	and	2013,	by	segment,	is	as	follows:

|  |  | Income |  | and | Capital |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Revenue | before\ttaxes | Assets | Amortization | Expenditures |
| Reservoir\tCharacterization | $9,501 | \t$2,450 | \t$8,266 | \t$1,279 | \t$649 |
| Drilling | 13,563 | 2,538 | 8,535 | 1,177 | 672 |
| Production | 12,548 | 1,585 | 9,937 | 1,216 | 825 |
| Eliminations\t&amp;\tother | (137) | (63) | 2,067 | 213 | 264 |
| Pretax\toperating\tincome |  | 6,510 |  |  |  |
| Goodwill\tand\tintangible\tassets |  |  | 20,174 |  |  |
| All\tother\tassets |  |  | 2,262 |  |  |
| Corporate\t&amp;\tother\t(1) |  | (768) | 16,764 | 193 |  |
| Interest\tincome\t(2) |  | 30 |  |  |  |
| Interest\texpense\t(3) |  | (316) |  |  |  |
| Charges\t&amp;\tcredits\t(4) |  | (2,575) |  |  |  |
|  | $35,475 | \t$2,881 | \t$68,005 | \t$4,078 | \t$2,410 |

|  |  | Income |  | and | Capital |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Revenue | before\ttaxes | Assets | Amortization | Expenditures |
| Reservoir\tCharacterization | $12,905 | \t$3,708 | \t$9,191 | \t$1,459 | \t$1,207 |
| Drilling | 18,128 | 3,805 | 11,155 | 1,173 | 1,328 |
| Production | 17,763 | 3,193 | 11,481 | 1,066 | 1,192 |
| Eliminations\t&amp;\tother | (216) | (130) | 1,572 | 198 | 249 |
| Pretax\toperating\tincome |  | 10,576 |  |  |  |
| Goodwill\tand\tintangible\tassets |  |  | 20,141 |  |  |
| All\tother\tassets |  |  | 2,186 |  |  |
| Corporate\t&amp;\tother\t(1) |  | (848) | 11,178 | 198 |  |
| Interest\tincome\t(2) |  | 31 |  |  |  |
| Interest\texpense\t(3) |  | (347) |  |  |  |
| Charges\t&amp;\tcredits\t(4) |  | (1,773) |  |  |  |
|  | $48,580 | \t$7,639 | \t$66,904 | \t$4,094 | \t$3,976 |

|  |  | Income |  | and | Capital |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  | Revenue | before\ttaxes | Assets | Amortization | Expenditures |
| Reservoir\tCharacterization | $13,050 | \t$3,711 | \t$9,316 | \t$1,402 | \t$1,361 |
| Drilling | 16,792 | 3,238 | 10,440 | 1,076 | 1,289 |
| Production | 15,646 | 2,624 | 10,929 | 1,001 | 1,126 |
| Eliminations\t&amp;\tother | (222) | (229) | 2,332 | 192 | 167 |
| Pretax\toperating\tincome |  | 9,344 |  |  |  |
| Goodwill\tand\tintangible\tassets |  |  | 19,415 |  |  |
| All\tother\tassets |  |  | 2,618 |  |  |
| Corporate\t&amp;\tother\t(1) |  | (726) | 12,050 | 208 |  |
| Interest\tincome\t(2) |  | 22 |  |  |  |
| Interest\texpense\t(3) |  | (369) |  |  |  |
| Charges\t&amp;\tcredits\t(4) |  | 420 |  |  |  |
|  | $45,266 | \t$8,691 | \t$67,100 | \t$3,879 | \t$3,943 |

(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.	 Corporate	 assets	 consist	 of	 cash,	 short-term	 investments,	 fixed	 income investments,	held	to	maturity	and	investments	in	affiliates.

Segment	assets	consist	of	receivables,	inventories,	fixed	assets,	multiclient	seismic	data	and	SPM	investments.

Depreciation	and	amortization	includes	depreciation	of	property,	plant	and	equipment	and	amortization	of	intangible	assets,	multiclient	seismic	data	costs	and	SPM investments.

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| North\tAmerica | $9,811 | \t$16,151 | \t$13,897 |
| Latin\tAmerica | 6,014 | 7,699 | 7,754 |
| Europe/CIS/Africa | 9,284 | 12,515 | 12,411 |
| Middle\tEast\t&amp;\tAsia | 9,898 | 11,875 | 10,767 |
| Eliminations\t&amp;\tother | 468 | 340 | 437 |
|  | $35,475 | \t$48,580 | \t$45,266 |

Revenue	is	based	on	the	location	where	services	are	provided.

During	each	of	the	three	years	ended	December	31,	2015,	2014	and	2013,	no	single	customer	exceeded	10%	of	consolidated	revenue.

Schlumberger	did	not	have	revenue	from	third-party	customers	in	its	country	of	domicile	during	the	last	three	years.	Revenue	in	the	United	States	in	2015,	2014	and	2013 was	$8.5	billion,	$14.0	billion	and	$12.0	billion,	respectively.

Fixed	Assets	less	accumulated	depreciation	by	geographic	area	are	as	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| North\tAmerica | $4,392 | \t$4,885 | \t$4,858 |
| Latin\tAmerica | 1,728 | 1,969 | 1,889 |
| Europe/CIS/Africa | 2,978 | 3,640 | 3,452 |
| Middle\tEast\t&amp;\tAsia | 3,078 | 3,446 | 2,991 |
| Unallocated\t(1) | 1,239 | 1,456 | 1,906 |
|  | $13,415 | \t$15,396 | \t$15,096 |

(1) Represents	seismic	vessels,	including	the	related	on-board	equipment,	which	frequently	transition	between	geographic	areas.

# 18.	Pension	and	Other	Benefit	Plans

# Pension	Plans

Schlumberger	sponsors	several	defined	benefit	pension	plans	that	cover	substantially	all	US	employees	hired	prior	to	October	1,	2004.	The	benefits	are	based	on	years	of service	and	compensation,	on	a	career-average	pay	basis.

In	addition	to	the	United	States	defined	benefit	pension	plans,	Schlumberger	sponsors	several	other	international	defined	benefit	pension	plans.	The	most	significant	of these	international	plans	are	the	International	Staff	Pension	Plan	and	the	UK	pension	plan	(collectively,	the	"International	plans").	The	International	Staff	Pension	Plan covers	certain	international	employees	hired	prior	to	July	1,	2014	and	is	based	on	years	of	service	and	compensation	on	a	career-average	pay	basis.	The	UK	plan	covers employees	hired	prior	to	April	1,	1999,	and	is	based	on	years	of	service	and	compensation,	on	a	final	salary	basis.

The	weighted-average	assumed	discount	rate,	compensation	increases	and	the	expected	long-term	rate	of	return	on	plan	assets	used	to	determine	the	net	pension	cost	for	the US	and	International	plans	were	as	follows:

|  |  | US |  |  | International |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 |
| Discount\trate | 4.15% | 4.85% | 4.25% | 4.07% | 4.76% | 4.38% |
| Compensation\tincreases | 4.00% | 4.00% | 4.00% | 4.79% | 4.80% | 4.83% |
| Return\ton\tplan\tassets | 7.25% | 7.25% | 7.50% | 7.50% | 7.50% | 7.50% |

Net	pension	cost	for	2015,	2014	and	2013	included	the	following	components:

|  |  | US |  |  | International |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 |
| Service\tcost\t-\tbenefits\tearned\tduring\tthe\tperiod | $86 | \t$72 | \t$80 | \t$167 | \t$126 | \t$127 |
| Interest\tcost\ton\tprojected\tbenefit\tobligation | 170 | 164 | 150 | 297 | 288 | 253 |
| Expected\treturn\ton\tplan\tassets | (229) | (208) | (200) | (498) | (450) | (384) |
| Amortization\tof\tprior\tservice\tcost | 12 | 12 | 12 | 121 | 120 | 117 |
| Amortization\tof\tnet\tloss | 123 | 82 | 122 | 170 | 94 | 155 |
|  | $162 | \t$122 | \t$164 | \t$257 | \t$178 | \t$268 |

The	weighted-average	assumed	discount	rate	and	compensation	increases	used	to	determine	the	projected	benefit	obligations	for	the	US	and	International	plans	were	as follows:

|  | US |  | International |  |
| :--- | :--- | :--- | :--- | :--- |
|  | 2015 | 2014 | 2015 | 2014 |
| Change\tin\tProjected\tBenefit\tObligations |  |  |  |  |
| Projected\tbenefit\tobligation\tat\tbeginning\tof\tyear | $4,137 | $3,418 | \t$7,249 | $5,981 |
| Service\tcost | 86 | 72 | 167 | 126 |
| Interest\tcost | 170 | 164 | 297 | 288 |
| Contribution\tby\tplan\tparticipants | - | - | 143 | 122 |
| Actuarial\t(gains)\tlosses | (205) | 627 | (203) | 1,000 |
| Currency\teffect | - | - | (66) | (90) |
| Benefits\tpaid | (163) | (144) | (247) | (178) |
| Projected\tbenefit\tobligation\tat\tend\tof\tyear | $4,025 | $4,137 | \t$7,340 | $7,249 |
| Change\tin\tPlan\tAssets |  |  |  |  |
| Plan\tassets\tat\tfair\tvalue\tat\tbeginning\tof\tyear | $3,549 | $3,269 | \t$6,830 | $6,246 |
| Actual\treturn\ton\tplan\tassets | (1) | 339 | (4) | 502 |
| Currency\teffect | - | - | (69) | (102) |
| Company\tcontributions | 82 | 85 | 198 | 240 |
| Contributions\tby\tplan\tparticipants | - | - | 125 | 122 |
| Benefits\tpaid | (163) | (144) | (248) | (178) |
| Plan\tassets\tat\tfair\tvalue\tat\tend\tof\tyear | $3,467 | $3,549 | \t$6,832 | $6,830 |
| Unfunded\tLiability | $(558) | $(588) | \t$(508) | $(419) |
| Amounts\tRecognized\tin\tBalance\tSheet |  |  |  |  |
| Postretirement\tBenefits | $(558) | $(588) | \t$(657) | $(546) |
| Other\tAssets | - | - | 149 | 127 |
|  | $(558) | $(588) | \t$(508) | $(419) |
| Amounts\tRecognized\tin\tAccumulated\tOther\tComprehensive\tLoss |  |  |  |  |
| Actuarial\tlosses | $1,008 | $1,104 | \t$335 | $1,658 |
| Prior\tservice\tcost | 54 | 66 | - | 357 |
|  | $1,062 | $1,170 | \t$335 | $2,015 |
| Accumulated\tbenefit\tobligation | $3,763 | $3,805 | \t$6,913 | $6,793 |

The	unfunded	liability	represents	the	difference	between	the	plan	assets	and	the	projected	benefit	obligation	("PBO").	The	PBO	represents	the	actuarial	present	value	of benefits	based	on	employee	service	and	compensation	and	includes	an	assumption	about	future	compensation	levels.	The	accumulated	benefit	obligation	represents	the actuarial	present	value	of	benefits	based	on	employee	service	and	compensation,	but	does	not	include	an	assumption	about	future	compensation	levels.

The	weighted-average	allocation	of	plan	assets	and	the	target	allocations	by	asset	category	are	as	follows:

|  |  | US |  |  | International |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Target | 2015 | 2014 | Target | 2015 | 2014 |
| Equity\tsecurities | 37\t-\t56% | 52% | 48% | 45\t-\t71% | 64% | 58% |
| Debt\tsecurities | 35\t-\t62 | 36 | 42 | 20\t-\t35 | 27 | 32 |
| Cash\tand\tcash\tequivalents | 0\t-\t3 | 2 | 5 | 0\t-\t5 | 2 | 4 |
| Alternative\tinvestments | 0\t-\t10 | 10 | 8 | 0\t-\t25 | 7 | 6 |
|  | 100% | 100% | 100% | 100% | 100% | 100% |

Asset	performance	is	monitored	frequently	with	an	overall	expectation	that	plan	assets	will	meet	or	exceed	the	weighted	index	of	its	target	asset	allocation	and	component benchmark	over	rolling	five-year	periods.

The	expected	long-term	rate	of	return	on	assets	assumptions	reflect	the	average	rate	of	earnings	expected	on	funds	invested	or	to	be	invested.	The	assumptions	have	been determined	based	on	expectations	regarding	future	rates	of	return	for	the	portfolio	considering	the	asset	allocation	and	related	historical	rates	of	return.	The	appropriateness of	the	assumptions	is	reviewed	annually.

The	fair	value	of	Schlumberger's	pension	plan	assets	at	December	31,	2015	and	2014,	by	asset	category,	is	presented	below	and	was	determined	based	on	valuation techniques	categorized	as	follows:

●Level	One:	The	use	of	quoted	prices	in	active	markets	for	identical	instruments.

●Level	Two:	The	use	of	quoted	prices	for	similar	instruments	in	active	markets	or	quoted	prices	for	identical	or	similar	instruments	in	markets	that	are	not active	or	other	inputs	that	are	observable	in	the	market	or	can	be	corroborated	by	observable	market	data.

●Level	Three:	The	use	of	significant	unobservable	inputs	that	typically	require	the	use	of	management's	estimates	of	assumptions	that	market	participants would	use	in	pricing.

|  |  | 2015 | 2015 |  |  | 2014 | 2014 |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Total | Level\nOne | Level\nTwo | Level\nThree | Total | Level\nOne | Level\nTwo | Level\nThree |
| Asset\tCategory: |  |  |  |  |  |  |  |  |
| Cash\tand\tCash\tEquivalents | $86 | \t$40 | \t$46 | \t$- | \t$59 | \t$40 | \t$19 | \t$- |
| Equity\tSecurities: |  |  |  |  |  |  |  |  |
| US\t(a) | 1,195 | 655 | 540 |  | 1,149 | 622 | 527 |  |
| International\t(b) | 605 | 473 | 132 |  | 552 | 433 | 119 |  |
| Debt\tSecurities |  |  |  |  |  |  |  |  |
| Corporate\tbonds\t(c) | 599 |  | 599 |  | 654 |  | 654 |  |
| Government\tand\tgovernment-related\tdebt\tsecurities\t(d) | 589 | 159 | 430 |  | 735 | 175 | 560 |  |
| Collateralized\tmortgage\tobligations\tand\tmortgage |  |  |  |  |  |  |  |  |
| backed\tsecurities\t(e) | 65 |  | 65 |  | 107 |  | 107 |  |
| Alternative\tInvestments: |  |  |  |  |  |  |  |  |
| Private\tequity\t(f) | 203 |  |  | 203 | 210 |  |  | 210 |
| Real\testate\t(g) | 125 |  |  | 125 | 83 |  |  | 83 |
| Total | $3,467 | \t$1,327 | \t$1,812 | \t$328 | \t$3,549 | \t$1,270 | \t$1,986 | \t$293 |

# International	Plan	Assets

|  |  | 2015 | 2015 |  |  | 2014 | 2014 |  |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
|  | Total | Level\nOne | Level\nTwo | Level\nThree | Total | Level\nOne | Level\nTwo | Level\nThree |
| Asset\tCategory: |  |  |  |  |  |  |  |  |
| Cash\tand\tCash\tEquivalents | $138 | \t$115 | \t$23 | \t$- | \t$264 | \t$174 | \t$90 | \t$- |
| Equity\tSecurities: |  |  |  |  |  |  |  |  |
| US\t(a) | 2,736 | 2,240 | 496 |  | 2,432 | 1,757 | 675 |  |
| International\t(b) | 1,639 | 1,179 | 460 |  | 1,534 | 1,047 | 487 |  |
| Debt\tSecurities |  |  |  |  |  |  |  |  |
| Corporate\tbonds\t(c) | 657 |  | 657 |  | 780 |  | 780 |  |
| Government\tand\tgovernment-related\tdebt\tsecurities\t(d) | 1,036 | 8 | 1,028 |  | 1,181 | 8 | 1,173 |  |
| Collateralized\tmortgage\tobligations\tand\tmortgage |  |  |  |  |  |  |  |  |
| backed\tsecurities\t(e) | 143 |  | 143 |  | 256 |  | 256 |  |
| Alternative\tInvestments: |  |  |  |  |  |  |  |  |
| Private\tequity\t(f) | 331 |  |  | 331 | 246 |  |  | 246 |
| Real\testate\t(g) | 49 |  |  | 49 | 49 |  |  | 49 |
| Other | 103 |  |  | 103 | 88 |  |  | 88 |
| Total | $6,832 | \t$3,542 | \t$2,807 | \t$483 | \t$6,830 | \t$2,986 | \t$3,461 | \t$383 |

(a) US	equities	include	companies	that	are	well	diversified	by	industry	sector	and	equity	style	(i.e.,	growth	and	value	strategies).	Active	and	passive	management strategies	are	employed.	Investments	are	primarily	in	large	capitalization	stocks	and,	to	a	lesser	extent,	mid-	and	small-cap	stocks.

(b) International	equities	are	invested	in	companies	that	are	traded	on	exchanges	outside	the	US	and	are	well	diversified	by	industry	sector,	country	and	equity	style. Active	and	passive	strategies	are	employed.	The	vast	majority	of	the	investments	are	made	in	companies	in	developed	markets	with	a	small	percentage	in	emerging markets.

(c) Corporate	bonds	consist	primarily	of	investment	grade	bonds	from	diversified	industries.

(d) Government	and	government-related	debt	securities	are	comprised	primarily	of	inflation-protected	US	treasuries	and,	to	a	lesser	extent,	other	government-related securities.

(e) Collateralized	mortgage	obligations	and	mortgage	backed-securities	are	debt	obligations	that	represent	claims	to	the	cash	flows	from	pools	of	mortgage	loans,	which are	purchased	from	banks,	mortgage	companies,	and	other	originators	and	then	assembled	into	pools	by	governmental,	quasi-governmental	and	private	entities.

(f) Private	equity	includes	investments	in	several	fund	of	funds	limited	partnerships.

(g) Real	estate	primarily	includes	investments	in	real	estate	limited	partnerships,	concentrated	in	commercial	real	estate.

Schlumberger's	funding	policy	is	to	annually	contribute	amounts	that	are	based	upon	a	number	of	factors	including	the	actuarial	accrued	liability,	amounts	that	are deductible	for	income	tax	purposes,	legal	funding	requirements	and	available	cash	flow.	Schlumberger	currently	anticipates	contributing	approximately	$350	million	to	its postretirement	benefit	plans	in	2016,	subject	to	market	and	business	conditions.

# Postretirement	Benefits	Other	Than	Pensions

Schlumberger	provides	certain	healthcare	benefits	to	certain	former	US	employees	who	have	retired.		During	the	fourth	quarter	of	2014	Schlumberger	announced	that, effective	April	1,	2015,	it	will	change	the	way	it	provides	healthcare	coverage	to	certain	retirees	who	are	age	65	and	over.		Under	the	amended	plan,	these	retirees transferred	 to	 individual	 coverage	 under	 the	 Medicare	 Exchange.	 	 Schlumberger	 will	 subsidize	 the	 cost	 of	 the	 program	 by	 providing	 these	 retirees	 with	 a	 Health Reimbursement	Account.		The	annual	subsidy	may	be	increased	based	on	medical	cost	inflation,	but	it	will	not	be	increased	more	than	5%	in	any	given	year.

The	actuarial	assumptions	used	to	determine	the	accumulated	postretirement	benefit	obligation	and	net	periodic	benefit	cost	for	the	US	postretirement	medical	plan	were	as follows:

The	changes	in	the	accumulated	postretirement	benefit	obligation,	plan	assets	and	funded	status	were	as	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Change\tin\tProjected\tBenefit\tObligations |  |  |
| Benefit\tobligation\tat\tbeginning\tof\tyear | $1,221 | $1,247 |
| Service\tcost | 42 | 43 |
| Interest\tcost | 48 | 60 |
| Contribution\tby\tplan\tparticipants | 7 | 6 |
| Actuarial\t(gains)\tlosses | (168) | 210 |
| Benefits\tpaid | (47) | (46) |
| Plan\tamendments | - | (299) |
| Benefit\tobligation\tat\tend\tof\tyear | $1,103 | $1,221 |
| Change\tin\tPlan\tAssets |  |  |
| Plan\tassets\tat\tfair\tvalue\tat\tbeginning\tof\tyear | $854 | $731 |
| Company\tcontributions | 66 | 65 |
| Contributions\tby\tplan\tparticipants | 7 | 6 |
| Benefits\tpaid | (47) | (46) |
| Actual\treturn\ton\tplan\tassets | 4 | 98 |
| Plan\tassets\tat\tfair\tvalue\tat\tend\tof\tyear | $884 | $854 |
| Unfunded\tLiability | $(219) | $(367) |
| Amounts\tRecognized\tin\tAccumulated\tOther\tComprehensive\tLoss |  |  |
| Actuarial\tlosses | $106 | $242 |
| Prior\tservice\tcost | (275) | (307) |
|  | $(169) | $(65) |

The	unfunded	liability	is	included	in	Postretirement	Benefits	in	the	Consolidated	Balance	Sheet.

The	assets	of	the	US	postretirement	medical	plan	are	invested	60%	in	equity	securities	and	40%	in	debt	securities	at	December	31,	2015.	The	fair	value	of	these	assets	was primarily	determined	based	on	Level	Two	valuation	techniques.

Assumed	health	care	cost	trend	rates	have	a	significant	effect	on	the	amounts	reported	for	the	US	postretirement	medical	plan.	A	one	percentage	point	change	in	assumed health	care	cost	trend	rates	would	have	the	following	effects:

|  | One	percentage | One	percentage |
| :--- | :--- | :--- |
|  | point\tincrease | point\tdecrease |
| Effect\ton\ttotal\tservice\tand\tinterest\tcost\tcomponents | $7 | $(6) |
| Effect\ton\taccumulated\tpostretirement\tbenefit\tobligation | $37 | $(33) |

# Other	Information

The	expected	benefits	to	be	paid	under	the	US	and	International	pension	plans	as	well	as	the	postretirement	medical	plan	were	as	follows:

|  | Pension	Benefits | Pension	Benefits | Postretirement |
| :--- | :--- | :--- | :--- |
|  | US | International | Medical\tPlan |
| 2016 | $176 | \t$242 | $50 |
| 2017 | $183 | \t$259 | $53 |
| 2018 | $189 | \t$278 | $57 |
| 2019 | $197 | \t$294 | $60 |
| 2020 | $205 | \t$310 | $62 |
| 2021-2025 | $1,152 | \t$1,781 | $341 |

Included	in	Accumulated	other	comprehensive	loss	at	December	31,	2015	are	non-cash	pretax	charges	which	have	not	yet	been	recognized	in	net	periodic	benefit	cost.	The estimated	portion	of	each	component	of	Accumulated	other	comprehensive	loss	which	is	expected	to	be	recognized	as	a	component	of	net	periodic	benefit	cost	during	the year	ending	December	31,	2016	is	as	follows:

|  |  | Postretirement |
| :--- | :--- | :--- |
|  | Pension\tPlans | Medical\tPlan |
| Net\tactuarial\tlosses | $163 | $- |
| Prior\tservice\tcost\t(credit) | $133 | $(32) |

In	addition	to	providing	defined	pension	benefits	and	a	postretirement	medical	plan,	Schlumberger	and	its	subsidiaries	have	other	deferred	benefit	programs,	primarily profit	sharing	and	defined	contribution	pension	plans.	Expenses	for	these	programs	were	$565	million,	$749	million	and	$671	million	in	2015,	2014	and	2013,	respectively.

# 19.	Supplementary	Information

Cash	paid	for	interest	and	income	taxes	was	as	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Interest | $346 | $389 | $369 |
| Income\ttax | $1,567 | $2,048 | $1,729 |

During	the	fourth	quarter	of	2015,	Schlumberger	entered	into	an	agreement	with	one	of	its	customers	to	receive	certain	fixed	assets	in	lieu	of	payment	of	approximately $200	million	of	accounts	receivable.

# Interest	and	other	income	includes	the	following:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Interest\tincome | $52 | $51 | $33 |
| Earnings\tof\tequity\tmethod\tinvestments | 184 | 240 | 132 |
|  | $236 | $291 | $165 |

# The	change	in	Allowance	for	doubtful	accounts	is	as	follows:

|  | 2015 | 2014 | 2013 |
| :--- | :--- | :--- | :--- |
| Balance\tat\tbeginning\tof\tyear | $275 | $384 | $202 |
| Provision | 75 | 39 | 205 |
| Amounts\twritten\toff | (17) | (148) | (23) |
| Balance\tat\tend\tof\tyear | $333 | $275 | $384 |

# Accounts	payable	and	accrued	liabilities	are	summarized	as	follows:

|  | 2015 | 2014 |
| :--- | :--- | :--- |
| Payroll,\tvacation\tand\temployee\tbenefits | $1,424 | $1,899 |
| Trade | 3,243 | 4,344 |
| Other | 3,060 | 3,003 |
|  | $7,727 | $9,246 |

# 20.	Discontinued	Operations

During	the	second	quarter	of	2013,	Schlumberger	completed	the	wind	down	of	its	operations	in	Iran	and,	therefore,	classified	the	historical	results	of	this	business	as	a discontinued	operation.

In	2009,	the	US	Department	of	Justice	began	an	investigation	into	past	violations	of	US	sanctions	regarding	Schlumberger's	historical	operations	in	Iran	and	Sudan	that occurred	between	2004	and	2010.	During	the	second	quarter	of	2014,	Schlumberger	increased	its	accrual	for	this	contingency.		Accordingly,	Schlumberger	recorded	a	$205 million	charge,	which	was	reflected	within	Loss	from	discontinued	operations	in	the	Consolidated	Statement	of	Income	during	the	second	quarter	of	2014.

During	2015,	Schlumberger	resolved	 this	 investigation	and	a	non-US	subsidiary	of	Schlumberger	pleaded	guilty	 to	one	criminal	count	of	conspiracy	 to	violate	 the International	Emergency	Economic	Powers	Act.	Under	the	terms	of	the	plea	agreement,	Schlumberger	paid	approximately	$233	million	in	fines,	penalties	and	assessments during	the	second	quarter	of	2015,	which	had	been	previously	accrued.	This	payment	is	reflected	within	Cash	flows	used	in	discontinued	operations	–	operating	activities in	Schlumberger's	Consolidated	Statement	of	Cash	Flows.

The	following	table	summarizes	the	results	of	these	discontinued	operations:

|  | 2014 | 2013 |
| :--- | :--- | :--- |
| Revenue | $- | $102 |
| Loss\tbefore\ttaxes | $(205) | (63) |
| Tax\texpense | - | (6) |
| Loss\tfrom\tdiscontinued\toperations | $(205) | $(69) |

# Management's	Report	on	Internal	Control	Over	Financial	Reporting

Schlumberger	management	is	responsible	for	establishing	and	maintaining	adequate	internal	control	over	financial	reporting	as	defined	in	Rule	13a–15(f)	of	the	Securities Exchange	Act	of	1934,	as	amended.	Schlumberger's	internal	control	over	financial	reporting	is	a	process	designed	to	provide	reasonable	assurance	regarding	the	reliability of	financial	reporting	and	the	preparation	of	financial	statements	for	external	purposes	in	accordance	with	generally	accepted	accounting	principles.

Because	of	its	inherent	limitations,	internal	control	over	financial	reporting	may	not	prevent	or	detect	misstatements.	Also,	projections	of	any	evaluation	of	effectiveness	to future	periods	are	subject	to	the	risk	that	controls	may	become	 inadequate	because	of	changes	 in	conditions,	or	 that	 the	degree	of	compliance	with	 the	policies	or procedures	may	deteriorate.

Schlumberger	management	assessed	the	effectiveness	of	its	internal	control	over	financial	reporting	as	of	December	31,	2015.	In	making	this	assessment,	it	used	the	criteria set	forth	 in	2013	by	 the	Committee	of	Sponsoring	Organizations	of	 the	Treadway	Commission	(COSO) in	Internal	 Control—Integrated	 Framework.	Based	on this assessment	Schlumberger's	management	has	concluded	that,	as	of	December	31,	2015,	its	internal	control	over	financial	reporting	is	effective	based	on	those	criteria.

The	effectiveness	of	Schlumberger's	internal	control	over	financial	reporting	as	of	December	31,	2015	has	been	audited	by	PricewaterhouseCoopers	LLP,	an	independent registered	public	accounting	firm,	as	stated	in	their	report	which	appears	herein.

# Report	of	Independent	Registered	Public	Accounting	Firm

# To	the	Board	of	Directors	and	Stockholders

# of	Schlumberger	Limited

In	our	opinion,	the	accompanying	consolidated	balance	sheets	and	the	related	consolidated	statements	of	income,	of	comprehensive	income,	of	stockholders'	equity	and	of cash	flows	present	fairly,	in	all	material	respects,	the	financial	position	of	Schlumberger	Limited	and	its	subsidiaries	at	December	31,	2015	and	2014,	and	the	results	of their	operations	and	their	cash	flows	for	each	of	the	three	years	in	the	period	ended	December	31,	2015	in	conformity	with	accounting	principles	generally	accepted	in	the United	States	of	America.	Also	in	our	opinion,	the	Company	maintained,	in	all	material	respects,	effective	internal	control	over	financial	reporting	as	of	December	31, 2015,	based	on	criteria	established	in	Internal	Control—Integrated	Framework	issued	by	the	Committee	of	Sponsoring	Organizations	of	the	Treadway	Commission	in 2013.	The	Company's	management	is	responsible	for	these	financial	statements,	for	maintaining	effective	internal	control	over	financial	reporting	and	for	its	assessment	of the	effectiveness	of	internal	control	over	financial	reporting,	included	in	the	accompanying	Management's	Report	on	Internal	Control	Over	Financial	Reporting.	Our responsibility	is	to	express	opinions	on	these	financial	statements	and	on	the	Company's	internal	control	over	financial	reporting	based	on	our	integrated	audits.	We conducted	our	audits	in	accordance	with	the	standards	of	the	Public	Company	Accounting	Oversight	Board	(United	States).	Those	standards	require	that	we	plan	and perform	the	audits	to	obtain	reasonable	assurance	about	whether	the	financial	statements	are	free	of	material	misstatement	and	whether	effective	internal	control	over financial	reporting	was	maintained	in	all	material	respects.	Our	audits	of	the	financial	statements	included	examining,	on	a	test	basis,	evidence	supporting	the	amounts	and disclosures	in	the	financial	statements,	assessing	the	accounting	principles	used	and	significant	estimates	made	by	management,	and	evaluating	the	overall	financial statement	presentation.	Our	audit	of	internal	control	over	financial	reporting	included	obtaining	an	understanding	of	internal	control	over	financial	reporting,	assessing	the risk	that	a	material	weakness	exists,	and	testing	and	evaluating	the	design	and	operating	effectiveness	of	internal	control	based	on	the	assessed	risk.	Our	audits	also	included performing	such	other	procedures	as	we	considered	necessary	in	the	circumstances.	We	believe	that	our	audits	provide	a	reasonable	basis	for	our	opinions.

A	company's	 internal	control	over	financial	reporting	 is	a	process	designed	 to	provide	reasonable	assurance	regarding	 the	reliability	of	financial	reporting	and	 the preparation	of	financial	statements	for	external	purposes	in	accordance	with	generally	accepted	accounting	principles.	A	company's	internal	control	over	financial	reporting includes	those	policies	and	procedures	that	(i)	pertain	to	the	maintenance	of	records	that,	in	reasonable	detail,	accurately	and	fairly	reflect	the	transactions	and	dispositions of	the	assets	of	the	company;	(ii)	provide	reasonable	assurance	that	transactions	are	recorded	as	necessary	to	permit	preparation	of	financial	statements	in	accordance	with generally	accepted	accounting	principles,	and	that	receipts	and	expenditures	of	the	company	are	being	made	only	in	accordance	with	authorizations	of	management	and directors	of	the	company;	and	(iii)	provide	reasonable	assurance	regarding	prevention	or	timely	detection	of	unauthorized	acquisition,	use,	or	disposition	of	the	company's assets	that	could	have	a	material	effect	on	the	financial	statements.

/s/	PricewaterhouseCoopers	LLP PricewaterhouseCoopers	LLP Houston,	Texas January	27,	2016

# Quarterly	Results

# (Unaudited)

The	following	table	summarizes	Schlumberger's	results	by	quarter	for	the	years	ended	December	31,	2015	and	2014.

|  |  |  | Net	income	(loss) | Earnings	per	share	of | Earnings	per	share	of |
| :--- | :--- | :--- | :--- | :--- | :--- |
|  |  | Gross | attributable\tto | Schlumberger\t(2) | Schlumberger\t(2) |
|  | Revenue\t(2) | Margin\t(1),\t(2) | Schlumberger\t(2) | Basic | Diluted |
| Quarters\t2015 |  |  |  |  |  |
| First\t(3) | $10,248 | $2,152\t\t$ | 975 | \t $0.76 | \t $0.76 |
| Second | 9,010 | 1,874 | 1,124 | 0.89 | 0.88 |
| Third | 8,472 | 1,674 | 989 | 0.78 | 0.78 |
| Fourth\t(4) | 7,744 | 1,451 | (1,016) | (0.81) | (0.81) |
|  | $35,475 | $7,154\t\t$ | 2,072 | \t $1.63 | \t $1.63 |
| Quarters\t2014 |  |  |  |  |  |
| First | $11,239 | $2,494\t\t$ | 1,592 | \t $1.22 | \t $1.21 |
| Second | 12,054 | 2,785 | 1,595 | 1.23 | 1.21 |
| Third | 12,646 | 2,957 | 1,949 | 1.51 | 1.49 |
| Fourth\t(5) | 12,641 | 2,950 | 302 | 0.24 | 0.23 |
|  | $48,580 | $11,182\t\t$ | 5,438 | \t $4.20 | \t $4.16 |

(1) Gross	margin	equals	Revenue	less	Cost	of	revenue.

(2) Amounts	may	not	add	due	to	rounding.

(3) Net	income	in	the	first	quarter	of	2015	includes	after-tax	charges	of	$383	million.

(4) Net	income	in	the	fourth	quarter	of	2015	includes	after-tax	charges	of	$1.835	billion.

# *					Mark	of	Schlumberger

# Item	9.	Changes	in	and	Disagreements	with	Accountants	on	Accounting	and	Financial	Disclosure.

# Item	9A.	Controls	and	Procedures.

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	so	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	has	been	no	change	in	Schlumberger's internal	 control	 over	 financial	 reporting	 that	 occurred	 during	 the	 fourth	 quarter	 of	 2015	 that	 has	 materially	 affected,	 or	 is	 reasonably	 likely	 to	 materially	 affect, Schlumberger's	internal	control	over	financial	reporting.

# Item	9B.	Other	Information.

# PART	III

# Item	10.	Directors,	Executive	Officers	and	Corporate	Governance	of	Schlumberger.

See	"Item	1.	Business	–	Executive	Officers	of	Schlumberger"	of	this	Report	for	Item	10	information	regarding	executive	officers	of	Schlumberger.	The	information	under the	captions	"Election	of	Directors,"	"Section	16(a)	Beneficial	Ownership	Reporting	Compliance,"	"Corporate	Governance	–	Director	Nominations"	and	"Corporate Governance	–	Board	Committees	–	Audit	Committee"	in	Schlumberger's	2016	Proxy	Statement	is	incorporated	herein	by	reference.

Schlumberger	has	a	Code	of	Conduct	that	applies	to	all	of	its	directors,	officers	and	employees,	including	its	principal	executive,	financial	and	accounting	officers,	or persons	performing	similar	functions.	Schlumberger's	Code	of	Conduct	is	posted	on	its	website	at	www.slb.com/about/codeofconduct.aspx.	Schlumberger	 intends	 to disclose	future	amendments	to	the	Code	of	Conduct	and	any	grant	of	a	waiver	from	a	provision	of	the	Code	of	Conduct	requiring	disclosure	under	applicable	SEC	rules	at www.slb.com/about/codeofconduct.aspx.

# Item	11.	Executive	Compensation.

The	information	set	forth	under	the	captions	"Compensation	Discussion	and	Analysis,"	"Executive	Compensation	Tables	and	Accompanying	Narrative,"	"Compensation Committee	Report"	and	"Director	Compensation	in	Fiscal	Year	2015"	in	Schlumberger's	2016	Proxy	Statement	is	incorporated	herein	by	reference.

# Item	12.	Security	Ownership	of	Certain	Beneficial	Owners	and	Management	and	Related	Stockholder	Matters.

The	 information	 under	 the	 captions	 "Stock	 Ownership	 Information—Security	 Ownership	 by	 Certain	 Beneficial	 Owners,"	 "Stock	 Ownership Information—Security Ownership	by	Management"	and	"Equity	Compensation	Plan	Information"	in	Schlumberger's	2016	Proxy	Statement	is	incorporated	herein	by	reference.

# Item	13.	Certain	Relationships	and	Related	Transactions,	and	Director	Independence.

The	information	under	the	captions	"Corporate	Governance—Board	Independence"	and	"Corporate	Governance—Policies	and	Procedures	for	Approval	of	Related	Person Transactions"	in	Schlumberger's	2016	Proxy	Statement	is	incorporated	herein	by	reference.

# Item	14.	Principal	Accounting	Fees	and	Services.

The	information	under	the	caption	"Appointment	of	Independent	Registered	Public	Accounting	Firm"	in	Schlumberger's	2016	Proxy	Statement	is	incorporated	herein	by reference.

# PART	IV

# Item	15.		Exhibits	and	Financial	Statement	Schedules.

(a) The	following	documents	are	filed	as	part	of	this	Report:

Financial	statements	of	companies	accounted	for	under	the	equity	method	and	unconsolidated	subsidiaries	have	been	omitted	because	they	do	not	meet	the	materiality	tests for	assets	or	income.

(2) Financial	Statement	Schedules	not	required

(3) Exhibits:	the	exhibits	listed	in	the	accompanying	"Index	to	Exhibits"	are	filed	or	incorporated	by	reference	as	part	of	this Form	10-K.

# SIGNATURES

Pursuant	to	the	requirements	of	Section	13	or	15(d)	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.

By: /S/	HOWARD	GUILD

# Howard	Guild

# Chief	Accounting	Officer

Pursuant	to	the	requirements	of	the	Securities	Exchange	Act	of	1934,	this	Report	has	been	signed	below	by	the	following	persons	on	behalf	of	the	Registrant	and	in	the capacities	and	on	the	dates	indicated.

# /S/	SIMON	AYAT

Simon	Ayat

# /S/	HOWARD	GUILD

Chairman	and	Chief	Executive	Officer

(Principal	Executive	Officer)

Executive	Vice	President	and	Chief	Financial	Officer (Principal	Financial	Officer)

(Principal	Accounting	Officer)

/s/	ALEXANDER	C.	JUDEN

*By	Alexander	C.	Juden	Attorney-in-Fact

# INDEX	TO	EXHIBITS

|  | Exhibit |
| :--- | :--- |
| Agreement\tand\tPlan\tof\tMerger\tdated\tAugust\t25,\t2015,\tamong\tSchlumberger\tHoldings\tCorporation,\tRain\tMerger\tSub\tLLC,\tSchlumberger\tLimited\tand | 2.1 |
| filed\ton\tAugust\t26,\t2015) |  |
| Articles\tof\tIncorporation\tof\tSchlumberger\tLimited\t(Schlumberger\tN.V.),\tas\tlast\tamended\ton\tApril\t6,\t2011\t(incorporated\tby\treference\tto\tExhibit\t3\tto\nSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\tfiled\ton\tApril\t7,\t2011) | 3.1 |
| Amended\tand\tRestated\tBy-Laws\tof\tSchlumberger\tLimited\t(Schlumberger\tN.V.),\tas\tlast\tamended\ton\tMay\t12,\t2015\t(incorporated\tby\treference\tto\tExhibit | 3.2 |
| Indenture\tdated\tas\tof\tDecember\t3,\t2013,\tby\tand\tamong\tSchlumberger\tInvestment\tSA,\tas\tissuer,\tSchlumberger\tLimited,\tas\tguarantor,\tand\tThe\tBank\tof | 4.1 |
| December\t3,\t2013) |  |
| First\tSupplemental\tIndenture\tdated\tas\tof\tDecember\t3,\t2013,\tby\tand\tamong\tSchlumberger\tInvestment\tSA,\tas\tissuer,\tSchlumberger\tLimited,\tas\tguarantor, | 4.2 |
| Schlumberger\tLimited\tSupplementary\tBenefit\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit | 10.1 |
| Schlumberger\tLimited\tRestoration\tSavings\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit | 10.2 |
| First\tAmendment\tto\tSchlumberger\tLimited\tRestoration\tSavings\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tMarch\t31,\t2013)\t(+) | 10.3 |
| Schlumberger\t1998\tStock\tOption\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit\t10.4\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2008)\t(+) | 10.4 |
| Third\tAmendment\tto\tSchlumberger\t1998\tStock\tOption\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.4\tto\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-\nQ\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.5 |
| Schlumberger\t2001\tStock\tOption\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit\t10.5\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2008)\t(+) | 10.6 |
| Second\tAmendment\tto\tSchlumberger\t2001\tStock\tOption\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.5\tto\tSchlumberger's\tQuarterly\tReport\ton\tForm\n10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.7 |
| Schlumberger\tLimited\t2004\tStock\tand\tDeferral\tPlan\tfor\tNon-Employee\tDirectors,\tamended\tand\trestated\teffective\tJanuary\t19,\t2012\t(incorporated\tby | 10.8 |
| Schlumberger\t2005\tStock\tIncentive\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit\t10.6\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2008)\t(+) | 10.9 |
| Third\tAmendment\tto\tSchlumberger\t2005\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.6\tto\tSchlumberger's\tQuarterly\tReport\ton\tForm\n10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.10 |
| Schlumberger\t2008\tStock\tIncentive\tPlan,\tas\tconformed\tto\tinclude\tamendments\tthrough\tJanuary\t1,\t2009\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2008)\t(+) | 10.11 |
| Second\tAmendment\tto\tSchlumberger\t2008\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.7\tto\tSchlumberger's\tQuarterly\tReport\ton\tForm\n10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.12 |
| Schlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\tfiled\ton | 10.13 |

|  |  |  |  |  |  | Exhibit |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.14 |
| Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2013\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | 10.15 |
| Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | Form\t of\t 2014\tThree\tYear\t Performance\t Share\t Unit\tAward\tAgreement\t under\t Schlumberger\t 2013\t Omnibus\t Stock\t Incentive\t Plan\t (incorporated\t by | 10.16 |
| French\t Sub-Plan\t of\t Schlumberger\t 2010\t Omnibus\t Stock\t Incentive\t Plan\t for\t Employees\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tMarch\t31,\t2013)\t(+) | in\t France | (incorporated\t by | reference | to\t Exhibit\t 10.7 | to | 10.17 |
| Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | 10.18 |
| Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | Form\tof\tOption\tAgreement\t(Employees\tin\tFrance),\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated | 10.19 |
| Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby | 10.20 |
| Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | Form\tof\t2013\tOne\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\t(Employees\tin\tFrance)\tunder\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan | 10.21 |
| Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tAppendix\tA\tto\tSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\n14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | 10.22 |
| First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | First\tAmendment\tto\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.9\tto\tSchlumberger's\tQuarterly\tReport\ton\nForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2013)\t(+) | 10.23 |
| Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | Form\tof\tOption\tAgreement,\tIncentive\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.1\nto\tthe\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tin\tJune\t30,\t2015)\t(+) | 10.24 |
| Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | Form\tof\tOption\tAgreement,\tNon-Qualified\tStock\tOption,\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit | 10.25 |
| Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | 10.26 |
| Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | Schlumberger\tDiscounted\tStock\tPurchase\tPlan,\tas\tamended\tand\trestated\teffective\tas\tof\tJanuary\t1,\t2013\t(incorporated\tby\treference\tto\tAppendix\tB\tto\nSchlumberger's\tDefinitive\tProxy\tStatement\ton\tSchedule\t14A\tfiled\ton\tMarch\t1,\t2013)\t(+) | 10.27 |
| Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tIncentive\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.1\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\nfiled\ton\tJanuary\t19,\t2006)\t(+) | 10.28 |
| Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | Form\tof\tOption\tAgreement,\tCapped\tNon-Qualified\tStock\tOption\t(incorporated\tby\treference\tto\tExhibit\t10.2\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\n8-K\tfiled\ton\tJanuary\t19,\t2006)\t(+) | 10.29 |
| Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | Form\tof\tOption\tAgreement,\tUncapped\tIncentive\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.11\tto\nSchlumberger's\tAnnual\tReport\ton\tForm\t10-K\tfor\tthe\tyear\tended\tDecember\t31,\t2009)\t(+) | 10.30 |
| Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | Form\tof\tOption\tAgreement,\tUncapped\tNon-Qualified\tStock\tOption\t(for\t2001,\t2005\tand\t2008\tstock\tplans)\t(incorporated\tby\treference\tto\tExhibit\t10.12\tto | 10.31 |

|  | Exhibit |
| :--- | :--- |
| Form\tof\tSmith\tInternational,\tInc.\t2010\tRestricted\tStock\tUnit\tAgreement\t(incorporated\tby\treference\tto\tExhibit\t10.3\tto\tSchlumberger's\tQuarterly\tReport\non\tForm\t10-Q\tfor\tthe\tquarter\tended\tSeptember\t30,\t2010)\t(+) | 10.32 |
| Form\tof\tIndemnification\tAgreement\t(incorporated\tby\treference\tto\tExhibit\t10\tto\tSchlumberger's\tCurrent\tReport\ton\tForm\t8-K\tfiled\ton\tOctober\t21,\t2013) | 10.33 |
| Form\tof\t2016\tThree\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\tunder\tthe\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan,\tApplicable\tto | 10.34 |
| for\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) |  |
| Form\tof\t2016\tThree\tYear\tPerformance\tShare\tUnit\tAward\tAgreement\tunder\tthe\tSchlumberger\t2013\tOmnibus\tStock\tIncentive\tPlan,\tApplicable\tto | 10.35 |
| quarter\tended\tJune\t30,\t2015)\t(+) |  |
| Form\tof\tIncentive\tStock\tOption\tAgreement\tunder\tthe\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.6\tto\nSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | 10.36 |
| Form\tof\tRestricted\tStock\tUnit\tAward\tAgreement\tunder\tthe\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.7\nto\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | 10.37 |
| Form\tof\tNon-Qualified\tStock\tOption\tAgreement\tunder\tthe\tSchlumberger\t2010\tOmnibus\tStock\tIncentive\tPlan\t(incorporated\tby\treference\tto\tExhibit\t10.8\nto\tSchlumberger's\tQuarterly\tReport\ton\tForm\t10-Q\tfor\tthe\tquarter\tended\tJune\t30,\t2015)\t(+) | 10.38 |
| Subsidiaries\t(*) | 21 |
| Consent\tof\tIndependent\tRegistered\tPublic\tAccounting\tFirm\t(*) | 23 |
| Powers\tof\tAttorney\t(*) | 24 |
| Certification\tof\tChief\tExecutive\tOfficer\tpursuant\tto\tRule\t13a-14(a)\tas\tAdopted\tPursuant\tto\tSection\t302\tof\tthe\tSarbanes-Oxley\tAct\tof\t2002\t(*) | 31.1 |
| Certification\tof\tChief\tFinancial\tOfficer\tpursuant\tto\tRule\t13a-14(a)\tas\tAdopted\tPursuant\tto\tSection\t302\tof\tthe\tSarbanes-Oxley\tAct\tof\t2002\t(*) | 31.2 |
| Certification\tof\tChief\tExecutive\tOfficer\tpursuant\tto\t18\tU.S.C.\tSection\t1350,\tas\tAdopted\tPursuant\tto\tSection\t906\tof\tthe\tSarbanes-Oxley\tAct\tof\t2002\t(*) | 32.1 |
| Certification\tof\tChief\tFinancial\tOfficer\tpursuant\tto\t18\tU.S.C.\tSection\t1350,\tas\tAdopted\tPursuant\tto\tSection\t906\tof\tthe\tSarbanes-Oxley\tAct\tof\t2002\t(*) | 32.2 |
| Mine\tSafety\tDisclosure\t(*) | 95 |
| The\tfollowing\tmaterials\tfrom\tSchlumberger\tLimited's\tAnnual\tReport\ton\tForm\t10-K\tfor\t the\tyear\tended\tDecember\t31,\t2015,\tformatted\t in\tXBRL | 101 |

(iii)	Consolidated	Balance	Sheet,	(iv)	Consolidated	Statement	of	Cash	Flows,	(v)	Consolidated	Statement	of	Equity	and	(vi)	Notes	to	Consolidated Financial	Statements.	(*)

(*)	Exhibits	electronically	filed	with	this	Form	10-K.	All	other	exhibits	incorporated	by	reference.

(+)	Management	contracts	or	compensatory	plans	or	arrangements.



Question: what was the percent of the share under this new share repurchase program as of december 312015
Calculation: shares_repurchased = 8.6
shares_total = 10
percent_repurchased = shares_repurchased / shares_total
answer = percent_repurchased * 100
Answer: 86%