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 basis points per year.
During the first quarter of 2011, Schlumberger issued $1.1 billion of 4.200% Senior Notes due 2021.
During the first quarter of 2011, Schlumberger issued $500 million of 2.650% Senior Notes due 2016. Schlumberger
entered into agreements to swap these dollar notes for euros on the date of issue until maturity, effectively making this
a euro denominated debt on which Schlumberger will pay interest in euros at a rate of 2.39%.
During the first quarter of 2011, Schlumberger repurchased all of the outstanding 9.75% Senior Notes due 2019, the
8.625% Senior Notes due 2014 and the 6.00% Senior Notes due 2016 for approximately $1.26 billion. These transactions
did not result in any significant gains or losses.
During the third and fourth quarters of 2010, Schlumberger repurchased all of its $650 million 6.50% Notes due 2012.
Schlumberger maintains a
€
3.0 billion Euro Medium Term Note program that provides for the issuance of various
types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies. Schlumberger
issued
€
1.0 billion 2.75% Guaranteed Notes due 2015 in the fourth quarter of 2010 under this program. Schlumberger
entered into agreements to swap these euro notes for US dollars on the date of issue until maturity, effectively making
this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of 2.56%.
Schlumberger also issued
€
1.0 billion 4.50% Guaranteed Notes due 2014 in the first quarter of 2009 under this program.
Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until maturity,
effectively making this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of
4.95%.
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.
Commercial paper borrowings outstanding at December 31, 2011 and 2010 include certain notes issued in currencies
other than the US dollar which were swapped for US dollars and pounds sterling on the date of issue until maturity.
Commercial paper borrowings are classified as long-term debt to the extent of their backup by available and unused
committed credit facilities maturing in more than one year and to the extent it is Schlumberger’s intent to maintain
these obligations for longer than one year.
At December 31, 2011, Schlumberger had separate committed debt facility agreements aggregating $4.1 billion with
commercial banks, of which $2.8 billion was available and unused. This included $3.5 billion of committed facilities
which support commercial paper programs in the United States and Europe, of which $0.5 billion mature in December
2012 and $3.0 billion mature in July 2016. Interest rates and other terms of borrowing under these lines of credit vary
from country to country. Borrowings under the commercial paper programs at December 31, 2011 were $0.9 billion
($1.9 billion at December 31, 2010). At December 31, 2011, all of the $0.9 billion of outstanding commercial paper
borrowings were classified within
Long-term debt – current portion
in the
Consolidated Balance Sheet
.
A summary of
Long-term Debt
by currency, analyzed by Bonds and Notes, Commercial Paper (CP) and Other, at
December 31 follows. As described in further detail above, the currencies are presented after taking into account
currency swaps entered into on the date of issuance until maturity.
(Stated in millions)
2011
2010
Bonds and
Notes CP Other Total
Bonds and
Notes CP Other Total
US dollar
$7,787 $– $47 $7,834
$5,017 $– $104 $5,121
Euro
498 – 151 649
– 183
– 183
Norwegian kroner
– –
16
16
–
–
17
17
Pound sterling
– –
–
–
– 184
– 184
Other
– –
57
57
–
–
12
12
$8,285 $– $271 $8,556
$5,017 $367 $133 $5,517
The weighted average interest rate on variable rate debt as of December 31, 2011 was 2.8%.
Long-term Debt
as of December 31, 2011, is due as follows: $1.168 billion in 2013, $1.605 billion in 2014, $1.297
billion in 2015, $1.792 billion in 2016 and $2.694 billion after 2016.
The fair value of Schlumberger’s
Long-term Debt
at December 31, 2011 and December 31, 2010 was $8.9 billion and
$5.6 billion, respectively, and was estimated based on quoted market prices.
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