Schlumberger 2010 Annual Report - page 64

As a result of these transactions, Schlumberger incurred pretax charges of $32 million ($20 million after-tax).
Third quarter of 2010:
As a result of the decision to rationalize support costs across the organization as well as to restructure the
North America land operations to provide greater operating efficiency, Schlumberger recorded a pretax charge
of $90 million ($77 million after-tax).
Following the recent successful introduction of UniQ, a new generation single-sensor land acquisition system,
Schlumberger recorded a $78 million pretax charge ($71 million after-tax), related to the impairment of
WesternGeco’s first generation Q-Land system assets.
A pretax and after-tax charge of $63 million primarily relating to the early termination of a vessel lease
associated with WesternGeco’s electromagnetic service offering as well as related assets, including a
$30 million impairment related to an equity-method investment.
In connection with the Schlumberger’s merger with Smith (see Note 4 –
), Schlumberger
recorded the following pretax charges: $56 million ($55 million after-tax) of merger-related transaction costs
including advisory and legal fees, $41 million ($35 million after-tax) relating to employee benefits for change
in control payments and retention bonuses and $38 million ($24 million after-tax) relating to the amortization
of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair
$40 million pretax charge ($36 million after-tax) for the early termination of rig contracts and workforce
reductions in Mexico due to the slowdown of project activity.
Schlumberger repurchased $352 million of its 6.50% Notes due 2012 and, as a result, incurred a pretax charge
of $28 million ($18 million after-tax).
Schlumberger recorded a pretax gain of $1.27 billion ($1.24 billion after-tax) as a result of remeasuring its
previously held 40% equity interest in the M-I SWACO joint venture. Refer to Note 4 –
for further
First quarter of 2010:
Schlumberger incurred $35 million of pretax and after-tax merger-related costs in connection with the Smith
and Geoservices transactions (see Note 4 –
). These costs primarily consisted of advisory and legal
During March 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law in the United
States. Among other things, the PPACA eliminates the tax deductibility of retiree prescription drug benefits to
the extent of the Medicare Part D subsidy that companies, such as Schlumberger, receive. As a result of this
change in law, Schlumberger recorded a $40 million charge to adjust its deferred tax assets to reflect the loss
of this future tax deduction.
Part II, Item 8
1...,54,55,56,57,58,59,60,61,62,63 65,66,67,68,69,70,71,72,73,74,...108
Powered by FlippingBook