Total
Level
One
Level
Two
Level
Three
Total
Level
One
Level
Two
Level
Three
2010
2009
International Plan Assets
(Stated in millions)
Asset Category:
Cash and Cash Equivalents
$ 106 $ 106
$ – $ – $ 111 $ 111 $ – $ –
Equity Securities:
US
(a)
1,268 1,268
1,113 1,113
International
(b)
1,031 1,031
643
643
Debt securities:
Corporate bonds
(c)
289
15 274
257
11 246
Government and government-related
(d)
693
522 171
492
378 114
Government agency collateralized mortgage obligations and
mortgage backed securities
(e)
125
44
81
137
20 117
Other collateralized mortgage obligations and mortgage-backed
securities
(f)
74
74
70
70
Other Investments:
Private equity
(g)
114
114
87
87
Real estate
(h)
64
64
66
66
Total
$3,764 $2,986 $600 $178
$2,976 $2,276 $547 $153
(a) US equities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive
management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.
(b) International equities are invested in companies that are traded on exchanges outside the US and are well diversified by industry sector, country
and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets
with a small percentage in emerging markets.
(c) Corporate bonds consist primarily of investment grade bonds from diversified industries.
(d) Government and government-related debt securities are comprised primarily of inflation protected US treasuries and, to a lesser extent, other
government-related securities.
(e) Government agency collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash
flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by
governmental and quasi-governmental entities.
(f) Other collateralized mortgage obligations and mortgage-backed securities are debt obligations that represent claims to the cash flows from pools
of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by private entities.
(g) Private equity includes investments in several fund of funds limited partnerships.
(h) Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.
The funding policy is to annually contribute amounts that are based upon a number of factors including the actuarial
accrued liability, amounts that are deductible for income tax purposes, legal funding requirements and available cash
flow. Schlumberger currently anticipates contributing approximately $600 million to $650 million to its postretirement
benefit plans in 2011, subject to market and business conditions.
Postretirement Benefits Other than Pensions
Schlumberger provides certain health care benefits to former US employees who have retired.
The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic
benefit cost for the US postretirement medical plan were as follows:
2010 2009 2010 2009 2008
Benefit Obligation
at December 31,
Net Periodic Benefit Cost
for the year
Discount rate
5.50%
6.00%
6.00%
6.94% 6.50%
Return on plan assets
–
–
8.00%
8.00% 8.00%
Current medical cost trend rate
8.00%
8.00%
8.00%
8.00% 9.00%
Ultimate medical cost trend rate
5.00%
5.00%
5.00%
5.00% 5.00%
Year that the rate reaches the ultimate trend rate
2017
2016
2016
2015
2012
69
Part II, Item 8
