The following is a summary of the 2010 charges and credits:
(Stated in millions)
Pretax Tax Net
Consolidated Statement
of Income Classification
Restructuring and Merger-related Charges:
Severance and other
$ 90 $ 13 $ 77
Restructuring &other
Impairment relating to WesternGeco’s first generation Q-Land acquisition
system
78
7
71
Restructuring & other
Other WesternGeco-related charges
63
–
63
Restructuring & other
Professional fees and other
107
1
106
Merger & integration
Merger-related employee benefits
54 10
44
Merger & integration
Inventory fair value adjustments
153 56
97
Cost of revenue
Mexico restructuring
40
4
36
Restructuring & other
Repurchase of bonds
60 23
37
Restructuring & other
Total restructuring and merger-related charges
645 114
531
Gain on investment in M-I SWACO
(1,270) (32) (1,238)
Gain on Investment in M-I SWACO
Impact of elimination of tax deduction related to Medicare Part D subsidy
– (40)
40
Taxes on income
$ (625) $ 42 $ (667)
Cash Flow
Net Debt represents gross debt less cash, short-term investments and fixed income investments, held to maturity.
Management believes that Net Debt provides useful information regarding the level of Schlumberger’s indebtedness by
reflecting cash and investments that could be used to repay debt.
Details of Net Debt follow:
(Stated in millions)
2012
2011
2010
Net Debt, beginning of year
$(4,850)
$(2,638) $ (126)
Income from continuing operations
5,468
4,730 4,253
Depreciation and amortization
(1)
3,500
3,274 2,757
Gain on M-I SWACO investment
–
– (1,270)
Pension and other postretirement benefits expense
404
365
299
Excess of equity income over dividends received
(61)
(64)
(85)
Stock -based compensation expense
335
271
198
Other non-cash items
97
203
327
Pension and other postretirement benefits funding
(673)
(601)
(868)
(Increase) decrease in working capital
(1,968)
(2,144)
267
Capital expenditures
(4,695)
(4,008) (2,912)
Multiclient seismic data capitalized
(351)
(289)
(326)
Dividends paid
(1,432)
(1,300) (1,040)
Stock repurchase program
(972)
(2,998) (1,717)
Proceeds from employee stock plans
410
438
401
Net debt assumed in merger with Smith
–
– (1,829)
Geoservices acquisition, net of debt acquired
–
– (1,033)
Business acquisitions and other transactions
(845)
(610)
(212)
Proceeds from divestiture of Wilson distribution business
906
–
–
Proceeds from divestiture of CE Franklin business
122
–
–
Proceeds from divestiture of Global Connectivity Services business
–
385
–
Discontinued operations
(152)
22
(24)
Conversion of debentures
–
–
320
Translation effect on net debt
(45)
23
30
Other
(309)
91
(48)
Net Debt, end of year
$(5,111)
$(4,850) $(2,638)
(1) Includes multiclient seismic data costs.
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