The weighted-average assumed discount rate, compensation increases and the expected long-term rate of return on
plan assets used to determine the net pension cost for the US and International plans were as follows:
2010
2009
2008
2010
2009
2008
US
International
Discount rate
6.00%
6.94% 6.50%
5.89%
6.81% 5.80%
Compensation increases
4.00%
4.00% 4.00%
4.93%
4.93% 4.90%
Return on plan assets
8.50%
8.50% 8.50%
8.00%
8.00% 8.00%
Net pension cost for 2010, 2009 and 2008 included the following components:
2010 2009 2008
2010 2009 2008
US
International
(Stated in millions)
Service cost – benefits earned during the period
$ 56
$ 52 $ 56
$ 51
$ 67 $ 33
Interest cost on projected benefit obligation
142
143
130
208
189
58
Expected return on plan assets
(191)
(166) (162)
(228)
(181) (75)
Amortization of net loss
60
29
13
19
– 11
Amortization of prior service cost
4
5
7
113
117
1
71
63
44
163
192
28
Curtailment charge
–
32
–
–
98
–
$ 71
$ 95 $ 44
$ 163
$ 290 $ 28
During 2009, due to the actions taken by Schlumberger to reduce its global workforce (See Note 3 –
Charges and
Credits
), Schlumberger experienced a significant reduction in the expected aggregate years of future service of its
employees in certain of its pension plans and its postretirement medical plan. Accordingly, Schlumberger recorded a
curtailment charge of $136 million during the second quarter of 2009 ($130 million relating to the pension plans and
$6 million relating to the postretirement medical plan). The curtailment charge includes recognition of the change in
benefit obligations as well as a portion of the previously unrecognized prior service costs, reflecting the reduction in
expected future service for the impacted plans. As a result of the curtailment, Schlumberger performed a remeasure-
ment of the impacted plans using a discount rate of 7.25% (as compared to 6.50% at December 31, 2008). All other
significant assumptions were unchanged from December 31, 2008 measurement date.
As the International Staff Pension Plan was converted to a defined benefit pension plan during the fourth quarter of
2008, the net pension cost for this plan was not significant in 2008.
The weighted-average assumed discount rate and compensation increases used to determine the projected benefit
obligations for the US and International plans were as follows:
2010 2009 2010 2009
US
International
Discount rate
5.50%
6.00%
5.47%
5.89%
Compensation increases
4.00%
4.00%
4.91%
4.93%
66
Part II, Item 8
