SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Stated in millions)
Year Ended December 31,
2011 2010 2009
Cash flows from operating activities:
Net Income
$ 5,013
$ 4,266 $ 3,142
(Income) loss from discontinued operations
(220)
–
22
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
(1)
3,281
2,759 2,476
Gain on investment in M-I SWACO
–
(1,270)
–
Earnings of companies carried at equity, less dividends received
(64)
(85)
(103)
Deferred income taxes
(35)
(109)
373
Stock-based compensation expense
272
198
186
Pension and other postretirement benefits expense
365
299
306
Pension and other postretirement benefits curtailment charge
–
–
136
Other non-cash items
203
327
162
Pension and other postretirement benefits funding
(601)
(868) (1,149)
Change in operating assets and liabilities:
(2)
(Increase) decrease in receivables
(1,310)
(289)
155
(Increase) decrease in inventories
(991)
(67)
64
(Increase) decrease in other current assets
(99)
136
9
Increase (decrease) in accounts payable and accrued liabilities
708
(103)
(293)
(Decrease) increase in estimated liability for taxes on income
(544)
480
(361)
(Decrease) increase in other liabilities
168
(89)
43
Other – net
23
(91)
143
NET CASH PROVIDED BY OPERATING ACTIVITIES
6,169
5,494 5,311
Cash flows from investing activities:
Capital expenditures
(4,016)
(2,914) (2,395)
Multiclient seismic data capitalized
(289)
(326)
(230)
Cash acquired in acquisition of Smith International, Inc.
–
399
–
Acquisition of Geoservices, net of cash acquired
–
(889)
–
Other business acquisitions and investments, net of cash acquired
(186)
(212)
(514)
Sale (purchase) of investments, net
351
1,023 (1,159)
Other
230
(19)
228
NET CASH USED IN INVESTING ACTIVITIES
(3,910)
(2,938) (4,070)
Cash flows from financing activities:
Dividends paid
(1,300)
(1,040) (1,006)
Proceeds from employee stock purchase plan
208
179
96
Proceeds from exercise of stock options
230
222
110
Tax benefit on stock options
15
14
4
Stock repurchase program
(2,998)
(1,717)
(500)
Proceeds from issuance of long-term debt
6,884
2,815 1,973
Repayment of long-term debt
(4,992)
(1,814) (1,754)
Net decrease in short-term borrowings
(119)
(68)
(111)
Other
(628)
–
–
NET CASH USED IN FINANCING ACTIVITIES
(2,700)
(1,409) (1,188)
Cash flow from discontinued operations – operating activities
–
–
(45)
Cash flow from discontinued operations – investing activities
385
–
–
Cash flow from discontinued operations
385
–
(45)
Net (decrease) increase in cash before translation effect
(56)
1,147
8
Translation effect on cash
(3)
–
–
Cash, beginning of year
1,764
617
609
Cash, end of year
$ 1,705
$ 1,764 $ 617
(1) Includes multiclient seismic data costs.
(2) Net of the effect of business acquisitions.
See the
Notes to Consolidated Financial Statements
36
