(Stated in millions)
2011
2010
Postretirement benefits
$ 440
$ 327
Intangible assets
(1,498)
(1,674)
Investments in non-US subsidiaries
(349)
(353)
Other, net
132
115
$(1,275)
$(1,585)
The above deferred tax balances at December 31, 2011 and 2010 were net of valuation allowances relating to net
operating losses in certain countries of $239 million and $263 million, respectively.
The components of
Taxes on income
were as follows:
(Stated in millions)
2011
2010 2009
Current:
United States – Federal
$ 842
$ 76 $(191)
United States – State
45
14
(6)
Outside United States
693
909 594
$1,580
$ 999 $ 397
Deferred:
United States – Federal
$ (80)
$ 183 $ 247
United States – State
(7)
2
13
Outside United States
73
(281)
86
Valuation allowance
(21)
(13)
27
$ (35)
$(109) $ 373
Consolidated taxes on income
$1,545
$ 890 $ 770
A reconciliation of the United States statutory federal tax rate (35%) to the consolidated effective tax rate is:
2011
2010 2009
US statutory federal rate
35%
35% 35%
Non-US income taxed at different rates
(10)
(14) (16)
Charges and credit (See Note 3)
—
(3)
1
Other
(1)
(1) —
Effective income tax rate
24%
17% 20%
Schlumberger conducts business in more than 100 tax jurisdictions, a number of which have tax laws that are not
fully defined and are evolving. Schlumberger’s tax filings are subject to regular audit by the tax authorities. Tax
liabilities are recorded based on estimates of additional taxes which will be due upon the conclusion of these audits.
A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the
years ended December 31, 2011, 2010 and 2009 is as follows:
(Stated in millions)
2011
2010 2009
Balance at beginning of year
$1,338
$1,026 $ 877
Additions based on tax positions related to the current year
153
190
178
Additions for tax positions of prior years
49
8
36
Additions related to acquisitions
48
288 —
Impact of changes in exchange rates
(18)
(3)
39
Settlements with tax authorities
(77)
(36)
(16)
Reductions for tax positions of prior years
(102)
(99)
(68)
Reductions due to the lapse of the applicable statute of limitations
(38)
(36)
(20)
Balance at end of year
$1,353
$1,338 $1,026
The amounts above exclude accrued interest and penalties of $225 million, $210 million and $168 million at
December 31, 2011, 2010 and 2009 respectively.
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