(Stated in millions, except exchange ratio and per share amounts)
Number of shares of Smith common stock outstanding as of the acquisition date
248
Number of Smith unvested restricted stock units outstanding as of the acquisition date
4
252
Multiplied by the exchange ratio
0.6966
Equivalent Schlumberger shares of common stock issued
176
Schlumberger closing stock price on August 27, 2010
$ 55.76
Common stock equity consideration
$ 9,812
Fair value of Schlumberger equivalent stock options issued
16
Total fair value of the consideration transferred
$ 9,828
Certain amounts reflect rounding adjustments
Allocation of Consideration Transferred to Net Assets Acquired
The following amounts represent the preliminary estimates of the fair value of identifiable assets acquired and
liabilities assumed in the acquisition as of December 31, 2010.
(Stated in millions)
Cash
$ 399
Receivables
1,831
Inventories
(1)
2,013
Fixed assets
2,017
Intangible assets:
Tradenames (weighted-average life of 25 years)
1,560
Technology (weighted-average life of 16 years)
1,170
Customer relationships (weighted average life of 23 years)
1,360
Other assets
429
Accounts payable and accrued liabilities
(1,460)
Long-term debt
(2)
(2,141)
Deferred taxes
(3)
(1,936)
Other liabilities
(528)
$ 4,714
Less:
Investment in M-I SWACO
(4)
(1,429)
Noncontrolling interests
(111)
Total identifiable net assets
$ 3,174
Gain on investment in M-I SWACO
(4)
(1,238)
Goodwill
(5)
7,892
Total consideration transferred
$ 9,828
The preliminary allocation of the consideration transferred to net assets acquired presented in the table above was
revised in 2011 to reflect the final allocations. The net result of adjustments made in 2011, which primarily related to
deferred taxes and accrued liabilities, was to increase goodwill by $194 million.
47
