What is the primary reason for this 8-K filing?

This 8-K filing is primarily to reclassify certain financial information of the NPTest and Verification Systems businesses, which were sold in the third quarter of 2003, in accordance with Statement of Financial Accounting Standards (SFAS) No. 144 concerning accounting for the impairment or disposal of long-lived assets.

What was the overall financial performance in 2002?

Schlumberger reported a net loss of $2,319,995 thousand for the year ended December 31, 2002. This was significantly impacted by a substantial goodwill impairment charge of $2.6 billion, mainly related to the SchlumbergerSema segment, and other charges totaling approximately $3.08 billion.

What is the SchlumbergerSema segment and why was there a goodwill impairment?

SchlumbergerSema is an IT services company. The goodwill impairment of $2.6 billion in 2002 was largely due to the difficulties in the telecommunications industry and severely depressed market values of IT companies serving SchlumbergerSema's sector, as reflected in a new strategic plan and associated valuation analysis.

What is the significance of the reclassification under SFAS No. 144?

SFAS No. 144 requires that the results of operations of a component of an entity that has been disposed of or is classified as held for sale be reported as discontinued operations in the income statements for current and prior periods. This ensures that investors can clearly distinguish the performance of ongoing operations from those being divested.

SLB 8-K SEC Disclosure — Sep 12, 2003

Summary

Schlumberger Limited (SLB) filed an 8-K on September 11, 2003, primarily to report the reclassification of financial information related to the sale of its NPTest and Verification Systems businesses in the third quarter of 2003. This reclassification aligns with SFAS No. 144, which requires businesses disposed of or held for sale to be reported as discontinued operations in financial statements for current and prior periods. The filing also provides a five-year summary of operations and selected financial data. Notably, 2002 saw a significant net loss of $2,319,995 thousand, largely driven by substantial charges including a $2.6 billion goodwill impairment related to the SchlumbergerSema segment, impacted by difficulties in the telecommunications and IT sectors. Despite the net loss in 2002, the company maintained consistent cash dividends per share at $0.75 across the reported years.

Key Highlights

1Sale of NPTest and Verification Systems businesses completed in Q3 2003, necessitating financial reclassification under SFAS No. 144.
2Reported a net loss of $2.32 billion for the year ended December 31, 2002.
3Recorded a significant goodwill impairment charge of $2.6 billion in Q4 2002, primarily affecting the SchlumbergerSema segment.
4Total charges in continuing operations for 2002 amounted to $3.08 billion, impacting earnings per share significantly.
5Oilfield Services segment revenue for 2002 was $9.35 billion, while SchlumbergerSema revenue was $3.0 billion.
6Maintained a consistent cash dividend of $0.75 per share throughout the five-year summary period (1998-2002).

SLB LIMITED/NV 8-K Report (Sep 12, 2003)

Summary

Key Highlights

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