The effect of derivative instruments designated as fair value hedges and not designated as hedges on the
Consolidated Statement of Income
was as follows:
2010
2009 Classification
Gain/(Loss) Recognized
in Income
(Stated in millions)
Derivatives designated as fair value hedges:
Foreign exchange contracts
$( 8)
$105
Cost of revenue
Interest rate swaps
22
6
Interest expense
$14
$111
Derivatives not designated as hedges:
Foreign exchange contracts
$(13)
$32
Cost of revenue
Commodity contracts
1
2
Cost of revenue
$(12)
$34
The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income
(OCI) was as follows:
2010
2009 Classification
Gain (Loss) Reclassified from
Accumulated OCI into Income
(Stated in millions)
Foreign exchange contracts
$( 260)
$95
Cost of revenue
Foreign exchange contracts
(14)
(15)
Research & engineering
$(274)
$80
2010
2009
Gain (Loss) Recognized in
OCI
(Stated in millions)
Foreign exchange contracts
$(269)
$223
12. Stockholders’ Equity
Schlumberger is authorized to issue 3,000,000,000 shares of common stock, par value $0.01 per share, of which
1,361,171,428 and 1,194,812,901 shares were outstanding on December 31, 2010 and 2009, respectively. Schlumberger is
also authorized to issue 200,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in series
with terms and conditions determined by the Board of Directors. No shares of preferred stock have been issued. Holders
of common stock are entitled to one vote for each share of stock held.
57
Part II, Item 8
