The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:
2010 2009 2010 2009
US
International
(Stated in millions)
Change in Projected Benefit Obligations
Projected benefit obligation at beginning of year
$2,439
$2,150
$3,518
$2,767
Service cost
56
52
51
67
Interest cost
142
143
208
189
Contributions by plan participants
–
–
76
61
Actuarial losses
172
191
310
449
Currency effect
–
–
(28)
69
Benefits paid
(122)
(110)
(121)
(97)
Plan amendments
82
–
74
16
Impact of curtailment
–
13
–
(3)
Projected benefit obligation at end of year
$2,769
$2,439
$4,088
$3,518
Change in Plan Assets
Plan assets at fair value at beginning of year
$2,254
$1,490
$2,976
$1,913
Actual return on plan assets
316
358
426
444
Currency effect
–
–
(26)
69
Company contributions
187
516
433
586
Contributions by plan participants
–
–
76
61
Benefits paid
(122)
(110)
(121)
(97)
Plan assets at fair value at end of year
$2,635
$2,254
$3,764
$2,976
Unfunded Liability
$ (134)
$ (185)
$ (324)
$ (542)
Amounts Recognized in Balance Sheet
Postretirement Benefits
$ (134)
$ (185)
$ (367)
$ (542)
Other Assets
–
–
43
–
$ (134) $(185) $ (324) $(542)
Amounts Recognized in Accumulated Other Comprehensive Income
Actuarial losses
$ 819
$ 833
$ 447
$ 335
Prior service cost
114
36
840
881
$ 933
$ 869
$1,287
$1,216
Accumulated benefit obligation
$2,568
$2,226
$3,785
$3,257
The funded status position represents the difference between the plan assets and the projected benefit obligation
(“PBO”). The PBO represents the actuarial present value of benefits based on employee service and compensation and
includes an assumption about future compensation levels. The accumulated benefit obligation represents the actuarial
present value of benefits based on employee service and compensation, but does not include an assumption about future
compensation levels.
The weighted-average allocation of plan assets and the target allocation by asset category are as follows:
Target
2010 2009
Target
2010 2009
US
International
Equity securities
50 – 60% 52%
48%
55 – 70% 61%
59%
Debt securities
28 – 38 40
38
20 – 35 31
32
Cash and cash equivalents
–
2
8
–
3
4
Other investments
0 – 12
6
6
0 – 10
5
5
100% 100%
100%
100% 100%
100%
Schlumberger’s investment policy includes various guidelines and procedures designed to ensure that assets are
prudently invested in a manner necessary to meet the future benefit obligation of the pension plans. The policy does not
permit the direct investment of plan assets in any Schlumberger security. Schlumberger’s investment horizon is long-
term and accordingly the target asset allocations encompass a strategic, long-term perspective of capital markets,
expected risk and return behavior and perceived future economic conditions. The key investment principles of
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Part II, Item 8
