Net pension cost for 2011, 2010 and 2009 included the following components:
(Stated in millions)
US
International
2011 2010 2009 2011 2010 2009
Service cost—benefits earned during the period
$ 59
$ 56 $ 52
$ 64
$ 51 $ 67
Interest cost on projected benefit obligation
150
142 143
226
208 189
Expected return on plan assets
(170)
(191) (166)
(279)
(228) (181)
Amortization of net loss
90
60
29
31
19 —
Amortization of prior service cost
12
4
5
120
113 117
141
71
63
162
163 192
Curtailment charge
—
— 32
—
— 98
$ 141
$ 71 $ 95
$ 162
$ 163 $ 290
During 2009, due to the actions taken by Schlumberger to reduce its global workforce (See Note 3 –
Charges and
Credits
), Schlumberger experienced a significant reduction in the expected aggregate years of future service of its
employees in certain of its pension plans and its postretirement medical plan. Accordingly, Schlumberger recorded a
curtailment charge of $136 million during the second quarter of 2009 ($130 million relating to the pension plans and $6
million relating to the postretirement medical plan). The curtailment charge includes recognition of the change in
benefit obligations as well as a portion of the previously unrecognized prior service costs, reflecting the reduction in
expected future service for the impacted plans. As a result of the curtailment, Schlumberger performed a
remeasurement of the impacted plans using a discount rate of 7.25%.
The weighted-average assumed discount rate and compensation increases used to determine the projected benefit
obligations for the US and International plans were as follows:
US
International
2011 2010 2011 2010
Discount rate
5.00%
5.50%
4.95%
5.47%
Compensation increases
4.00%
4.00%
4.91%
4.91%
64
