k
During the third and fourth quarters of 2010, Schlumberger repurchased the following debt:
Carrying
Value
(Stated in millions)
6.50% Notes due 2012
$ 649
6.75% Senior Notes due 2011
224
9.75% Senior Notes due 2019
212
6.00% Senior Notes due 2016
102
8.625% Senior Notes due 2014
88
$1,275
The premium paid in excess of the carrying value to repurchase the $1.275 billion of debt was approximately
$67 million.
k
During the first quarter of 2009, Schlumberger entered into a
A
3.0 billion 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 issued
A
1.0 billion 2.75% Guaranteed Notes due 2015 in the fourth quarter of 2010 under this
program. Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue
until maturity, effectively making this a US denominated debt on which Schlumberger will pay interest in US
dollars at a rate of 2.56%. The proceeds from these notes will be used for general corporate purposes.
During the first quarter of 2009, Schlumberger issued
A
1.0 billion 4.50% Guaranteed Notes due 2014 under this
program. 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 of 4.95%. The proceeds from these notes were used to refinance existing debt obligations
and for general corporate purposes.
k
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013. The
proceeds from these notes were used to refinance existing debt obligations.
k
In September 2008, Schlumberger issued
A
500 million 5.25% Guaranteed Notes due 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 of
4.74%. The proceeds from these notes were used to repay commercial paper borrowings.
k
On April 20, 2006, the Schlumberger Board of Directors approved a share repurchase program of up to
40 million shares of common stock to be acquired in the open market before April 2010, subject to market
conditions. This program was completed during the second quarter of 2008.
On April 17, 2008, the Schlumberger Board of Directors approved an $8 billion share repurchase program for
shares of Schlumberger common stock, to be acquired in the open market before December 31, 2011, of which
$3.15 billion had been repurchased as of December 31, 2010.
The following table summarizes the activity under these share repurchase programs during 2010, 2009 and
2008:
Total cost
of shares
purchased
Total number
of shares
purchased
Average
price paid
per share
(Stated in thousands except per share amounts and prices)
2010
$1,716,675
26,624.8
$64.48
2009
$ 500,097
7,825.0
$63.91
2008
$1,818,841
21,064.7
$86.35
k
Cash flow provided by operations was $5.5 billion in 2010, $5.3 billion in 2009 and $6.9 billion in 2008. The
decline in cash flow from operations in 2009 as compared to 2008 was primarily driven by the decrease in net
28
Part II, Item 7
