Discounted Stock Purchase Plan
Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld, subject to certain
restrictions, to purchase Schlumberger common stock. The purchase price of the stock is 92.5% of the lower of the
stock price at the beginning or end of the plan period at six-month intervals.
The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with
the following assumptions and resulting weighted average fair value per share:
2011
2010 2009
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2%
1.6% 1.1%
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28%
36% 44%
Risk free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.2%
0.3% 0.3%
Weighted average fair value per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.83
$10.30 $9.76
Total Stock-based Compensation Expense
The following summarizes stock-based compensation expense recognized in income:
(Stated in millions)
2011
2010 2009
Stock options
$176
$121 $118
Restricted stock
60
44 32
DSPP
36
33 36
$272
$198 $186
At December 31, 2011, there was $527 million of total unrecognized compensation cost related to nonvested stock-
based compensation arrangements of which $218 million is expected to be recognized in 2012, $152 million in 2013,
$101 million in 2014, $53 million in 2015 and $3 million in 2016.
14. Income Taxes
Schlumberger operates in more than 100 jurisdictions, where statutory tax rates generally vary from 0% to 50%.
Income from continuing operations before taxes
which were subject to United States and non-United States income
taxes for each of the three years ended December 31, was as follows:
(Stated in millions)
2011
2010 2009
United States
$2,325
$ 638 $ 86
Outside United States
4,013
4,518 3,848
$6,338
$5,156 $3,934
Schlumberger recorded $225 million of pretax charges in 2011 ($106 million in the US and $119 million outside the
US). Schlumberger recorded $621 million of net pretax credits in 2010 ($226 million of net charges in the US and $847
million of net credits outside the US) and $238 million of pretax charges in 2009 ($73 million in the US and $165
million outside the US). These charges and credits are included in the table above and are more fully described in Note
3 –
Charges and Credits
.
The components of net deferred tax assets (liabilities) were as follows:
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