What is the main reason for SLB's reporting segment change?

SLB is changing its reporting segments primarily due to the recent significant acquisitions of Smith International, Inc. and Geoservices. This restructuring aims to better reflect the combined company's operations and provide investors with a clearer view of performance across its expanded business.

What are the new reporting segments for SLB?

Effective Q1 2011, SLB will report results based on three product group segments: the Reservoir Characterization Group, the Drilling Group, and the Reservoir Production Group. These will collectively be referred to as 'Oilfield Services'. Additionally, the distribution business acquired from Smith will be a separate segment.

Does the pro forma financial information include expected cost savings or synergies from the acquisitions?

No, the pro forma information explicitly states that it does not reflect any cost savings, operating synergies, revenue enhancements, or the costs associated with integrating these operations or achieving those benefits.

SLB 8-K: Regulation FD — Jan 21, 2011

Q: What is the significance of the 'Unaudited Pro Forma Historical Consolidated Financial Information' provided?

This pro forma information presents the combined financial results of SLB, Smith, and Geoservices as if the acquisitions had occurred on January 1, 2008. It allows investors to see historical performance under the new segment structure, including updated Q4 and Full Year 2010 data, but it is important to note it does not reflect potential synergies or integration costs.

Summary

This 8-K filing by SLB LIMITED/NV (SLB) on January 21, 2011, primarily serves as a Regulation FD disclosure to update investors on the company's new reporting segment structure, effective Q1 2011. This change is a direct consequence of significant acquisitions, notably Smith International and Geoservices. The company is providing unaudited pro forma historical consolidated financial information reflecting these acquisitions as if they occurred on January 1, 2008, with updated Q4 and Full Year 2010 data presented under this new structure. Investors should note that the pro forma information is presented for informational purposes and does not reflect potential cost savings, synergies, integration costs, or revenue enhancements. The new reporting segments will be organized by product groups: Reservoir Characterization Group, Drilling Group, and Reservoir Production Group, collectively termed 'Oilfield Services.' A separate segment will also be reported for the distribution business acquired from Smith. This transition aims to provide a clearer view of the company's performance across its expanded operations.

Key Highlights

1SLB is changing its primary reporting segments effective Q1 2011, moving from two business segments to three product group segments due to acquisitions.
2The new reporting segments are: Reservoir Characterization Group, Drilling Group, and Reservoir Production Group, collectively 'Oilfield Services'.
3The distribution business acquired from Smith International will be reported as a separate segment.
4The company is furnishing unaudited pro forma historical consolidated financial information reflecting the acquisitions of Smith and Geoservices as if they occurred on January 1, 2008.
5Updated Q4 and Full Year 2010 information is presented within this new pro forma structure.
6The pro forma information does not include expected cost savings, synergies, or integration costs.
7This change is intended to provide a more granular view of the company's performance post-acquisitions.

SLB LIMITED/NV 8-K Report, Regulation FD Disclosure (Jan 21, 2011)

Summary

Key Highlights

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