Schlumberger 2011 Annual Report - page 43

Details of Net Debt follow:
(Stated in millions)
2011
2010
2009
Net Debt, beginning of year
$(2,638)
$ (126) $(1,129)
Income from continuing operations
4,793
4,266
3,164
Depreciation and amortization
(1)
3,281
2,759
2,476
Gain on M-I SWACO investment
(1,270)
Pension and other postretirement benefits expense
365
299
306
Pension and other postretirement benefits curtailment charge
136
Excess of equity income over dividends received
(64)
(85)
(103)
Stock -based compensation expense
272
198
186
Other non-cash items
203
327
162
Pension and other postretirement benefits funding
(601)
(868)
(1,149)
(Increase) decrease in working capital
(2,185)
230
(258)
Capital expenditures
(4,016)
(2,914)
(2,395)
Multiclient seismic data capitalized
(289)
(326)
(230)
Dividends paid
(1,300)
(1,040)
(1,006)
Stock repurchase program
(2,998)
(1,717)
(500)
Proceeds from employee stock plans
438
401
206
Net debt assumed in merger with Smith
(1,829)
Geoservices acquisition, net of debt acquired
(1,033)
Business acquisitions and other transactions
(610)
(212)
(514)
Proceeds from divestiture of Global Connectivity Services business
385
Conversion of debentures
320
Translation effect on net debt
23
30
(59)
Other
91
(48)
581
Net Debt, end of year
$(4,850)
$(2,638) $ (126)
(1) Includes multiclient seismic data costs.
(Stated in millions)
Components of Net Debt
Dec. 31
2011
Dec. 31
2010
Dec. 31
2009
Cash
$ 1,705
$ 1,764 $ 617
Short-term investments
3,122
3,226
3,999
Fixed income investments, held to maturity
256
484
738
Short-term borrowings and current portion of long-term debt
(1,377)
(2,595)
(804)
Convertible debentures
(321)
Long-term debt
(8,556)
(5,517)
(4,355)
$(4,850)
$(2,638) $ (126)
Key liquidity events during 2011, 2010 and 2009 included:
Š
During the third quarter of 2011, Schlumberger issued $1.1 billion of 1.950% Senior Notes due 2016, $1.6
billion of 3.300% Senior Notes due 2021 and $300 million of Floating Rate Senior Notes due 2014 that bear
interest at a rate equal to three-month LIBOR plus 55 bps per year.
Š
During the second quarter of 2011, Schlumberger completed the divestiture of its Global Connectivity Services
business for approximately $385 million in cash.
Š
During the first quarter of 2011, Schlumberger issued $1.1 billion of 4.200% Senior Notes due 2021 and $500
million of 2.650% Senior Notes due 2016.
Š
During the first quarter of 2011, Schlumberger repurchased all of its outstanding 9.75% Senior Notes due 2019,
8.625% Senior Notes due 2014 and 6.00% Senior Notes due 2016 for approximately $1.26 billion.
Š
As a result of the Smith acquisition on August 27, 2010, Schlumberger assumed net debt of $1.8 billion. This
amount consisted of $2.2 billion of debt (including a $0.4 billion adjustment to increase Smith’s long-term
fixed rate debt to its estimated fair value) and $0.4 billion of cash.
Š
During the second quarter of 2010, Schlumberger completed the acquisition of Geoservices for cash of $0.9
billion. Schlumberger assumed net debt of $0.1 billion in connection with this transaction.
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