The following is a reconciliation of
Accumulated Other Comprehensive Income (Loss)
:
Currency
Translation
Adjustments
Fair Value of
Derivatives
Deferred
Employee
Benefits
Liabilities
Total
Accumulated Other Comprehensive Income (Loss)
(Stated in millions)
Balance, January 1, 2008
$(821)
$32
$(384) $(1,173)
Currency translation adjustments
(82)
(82)
Changes in fair value of derivatives
(135)
(135)
Amortization of prior service cost
(20)
(20)
Amortization of actuarial net loss
34
34
Unrecognized prior service cost arising in the year
(1,077)
(1,077)
Actuarial net losses arising in the year
(725)
(725)
Deferred taxes
277
277
Balance, December 31, 2008
(903)
(103)
(1,895)
(2,901)
Currency translation adjustments
17
17
Changes in fair value of derivatives
143
143
Amortization of prior service cost
97
97
Amortization of actuarial net loss
32
32
Impact of curtailment
96
96
Unrecognized prior service cost arising in the year
27
27
Actuarial net losses arising in the year
(237)
(237)
Deferred taxes
52
52
Balance, December 31, 2009
(886)
40
(1,828)
(2,674)
Currency translation adjustments
(26)
(26)
Changes in fair value of derivatives
5
5
Amortization of prior service cost
96
96
Amortization of actuarial net loss
90
90
Unrecognized prior service cost arising in the year
(162)
(162)
Actuarial net losses arising in the year
(117)
(117)
Deferred taxes
20
20
Balance, December 31, 2010
$(912)
$45
$(1,901) $(2,768)
13. Stock Compensation Plans
Schlumberger has three types of stock-based compensation programs: stock options, a restricted stock and restricted
stock unit program (collectively referred to as “restricted stock”) and a discounted stock purchase plan (“DSPP”).
Stock Options
Key employees are granted stock options under Schlumberger stock option plans. For all of the stock options granted,
the exercise price equals the average of the high and low sales prices of Schlumberger stock on the date of grant; an
option’s maximum term is ten years, and options generally vest in increments over four or five years.
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing
model with the following weighted-average assumptions and resulting weighted-average fair value per share:
2010 2009 2008
Dividend yield
1.3%
1.2% 1.0%
Expected volatility
35%
34% 31%
Risk free interest rate
2.9%
2.2% 3.2%
Expected option life in years
6.9
6.9
7.0
Weighted-average fair value per share
$24.13
$13.92 $29.33
58
Part II, Item 8
