The following is a reconciliation from basic to diluted earnings per share from continuing operations for each of the
last three years:
Schlumberger
Income from
Continuing
Operations
Weighted
Average
Shares
Outstanding
Earnings Per
Share from
Continuing
Operations
(Stated in million except per share amounts)
2010:
Basic
$4,267
1,250
$3.41
Assumed conversion of debentures
3
2
Assumed exercise of stock options
–
9
Unvested restricted stock
–
2
Diluted
$4,270
1,263
$3.38
2009:
Basic
$ 3,156
1,198
$ 2.63
Assumed conversion of debentures
8
8
Assumed exercise of stock options
–
7
Unvested restricted stock
–
1
Diluted
$ 3,164
1,214
$ 2.61
2008:
Basic
$ 5,397
1,196
$ 4.51
Assumed conversion of debentures
12
13
Assumed exercise of stock options
–
13
Unvested restricted stock
–
2
Diluted
$ 5,409
1,224
$ 4.42
Employee stock options to purchase approximately 12.5 million, 17.1 million and 5.8 million shares of common stock
at December 31, 2010, 2009 and 2008, respectively, were outstanding but were 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.
3. Charges and Credits
Schlumberger recorded the following Charges and Credits in continuing operations during 2010, 2009 and 2008:
2010
Fourth quarter of 2010:
k
In connection with Schlumberger’s merger with Smith International, Inc. (“Smith”) (see Note 4 –
Acqui-
sitions
), Schlumberger recorded the following pretax charges: $115 million ($73 million after-tax) relating to
the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its
estimated fair value, $17 million ($16 million after-tax) of professional and other fees and $16 million
($12 million after-tax) relating to employee benefits.
k
Schlumberger repurchased the following debt:
Carrying
Value
(Stated in millions)
6.50% Notes due 2012
$297
6.75% Senior Notes due 2011
$123
9.75% Senior Notes due 2019
$212
6.00% Senior Notes due 2016
$102
8.625% Senior Notes due 2014
$ 88
45
Part II, Item 8
