Schlumberger 2011 Annual Report - page 45

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Capital expenditures were $4.0 billion in 2011, $2.9 billion in 2010 and $2.4 billion in 2009. Capital
expenditures are expected to approach $4.5 billion for the full year 2012.
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During 2011, 2010 and 2009 Schlumberger made contributions of $601 million, $868 million and $1.1 billion,
respectively, to its postretirement benefit plans. The US pension plans were 87% funded at December 31, 2011
based on the projected benefit obligation. This compares to 95% funded at December 31, 2010.
Schlumberger’s international defined benefit pension plans are a combined 88% funded at December 31, 2011
based on the projected benefit obligation. This compares to 92% funded at December 31, 2010.
Schlumberger currently anticipates contributing approximately $600 million to its postretirement benefit
plans in 2012, subject to market and business conditions.
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There were $321 million outstanding Series B debentures at December 31, 2009. During 2010, the remaining
$320 million of the 2.125% Series B Convertible Debentures due June 1, 2023 were converted by holders into
8.0 million shares of Schlumberger common stock and the remaining $1 million of outstanding Series B
debentures were redeemed for cash.
As of December 31, 2011, Schlumberger had approximately $4.8 billion of cash and short-term investments on
hand. Schlumberger had separate committed debt facility agreements aggregating $4.1 billion with
commercial banks, of which $2.8 billion was available and unused as of December 31, 2011. This included $3.5
billion of committed facilities which support commercial paper borrowings in the United States and Europe.
Schlumberger believes that these amounts are sufficient to meet future business requirements for at least the
next 12 months.
Schlumberger had $0.9 billion of commercial paper outstanding as of December 31, 2011.
Summary of Major Contractual Obligations
(Stated in millions)
Payment Period
Contractual Obligations
Total
2012 2013 – 2014 2015 –2016 After 2016
Debt
(1)
$ 9,933 $1,377
$2,773
$3,089
$2,694
Operating Leases
1,429
313
420
255
441
Purchase Obligations
(2)
3,707 2,647
386
298
376
$15,069 $4,337
$3,579
$3,642
$3,511
(1)
Excludes future payments for interest.
(2)
Represents an estimate of contractual obligations in the ordinary course of business. Although these contractual obligations are considered
enforceable and legally binding, the terms generally allow Schlumberger the option to reschedule and adjust its requirements based on business
needs prior to the delivery of goods.
Refer to Note 18
Pension and Other Benefit Plans
of the
Consolidated Financial Statements
for details regarding
Schlumberger’s pension and other postretirement benefit obligations.
As discussed in Note 14
Income Taxes
of the
Consolidated Financial Statements
, included in the Schlumberger
Consolidated Balance Sheet
at December 31, 2011 is approximately $1.35 billion of liabilities associated with uncertain
tax positions in the over 100 jurisdictions in which Schlumberger conducts business. Due to the uncertain and complex
application of tax regulations, combined with the difficulty in predicting when tax audits throughout the world may be
concluded, Schlumberger cannot make reliable estimates of the timing of cash outflows relating to these liabilities.
Schlumberger has outstanding letters of credit/guarantees which relate to business performance bonds, custom/
excise tax commitments, facility lease/rental obligations, etc. These were entered into in the ordinary course of
business and are customary practices in the various countries where Schlumberger operates.
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