2011
Š
Schlumberger recorded the following merger and integration-related charges in connection with its
acquisitions of Smith and Geoservices.
(Stated in millions)
Pretax Tax Net
First quarter
$ 33 $ 5 $28
Second quarter
32 8 24
Third quarter
26 3 23
Fourth quarter
22 2 20
$113 $18 $95
Š
During the fourth quarter, Schlumberger was able to physically assess the status of its assets in Libya. This
assessment resulted in Schlumberger recording a pretax and after-tax charge of $60 million relating to certain
assets that were no longer recoverable as a result of the political unrest in Libya.
Š
During the second quarter, Schlumberger made a $50 million grant to the Schlumberger Foundation to
support the Foundation’s Faculty for the Future program, which supports talented women scientists from the
developing world by helping them pursue advanced graduate studies in scientific disciplines at leading
universities worldwide. As a result, Schlumberger recorded a $50 million charge ($40 million after-tax).
The following is a summary of these charges:
(Stated in millions)
Pretax Tax Net
Consolidated Statement
of Income Classification
Merger-related integration costs
$113 $18 $ 95
Merger & integration
Donation to the Schlumberger Foundation
50 10 40
General & administrative
Write-off of assets in Libya
60 – 60
Cost of revenue
$223 $28 $195
2010
Fourth quarter of 2010:
Š
In connection with the acquisition of Smith, Schlumberger recorded the following pretax charges: $115
million ($73 million after-tax) relating to the amortization of purchase accounting adjustments associated
with the write-up of acquired inventory to its estimated fair value, $17 million ($16 million after-tax) of
professional and other fees and $15 million ($11 million after-tax) relating to employee benefits.
Š
Schlumberger repurchased the following debt:
(Stated in millions)
Carrying
Value
6.50% Notes due 2012
$297
6.75% Senior Notes due 2011
$123
9.75% Senior Notes due 2019
$212
6.00% Senior Notes due 2016
$102
8.625% Senior Notes due 2014
$ 88
As a result of these transactions, Schlumberger incurred pretax charges of $32 million ($20 million after-tax).
Third quarter of 2010:
Š
As a result of the decision to rationalize support costs across the organization as well as to restructure the
North America land operations to provide greater operating efficiency, Schlumberger recorded a pretax
charge of $90 million ($77 million after-tax).
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