9. Intangible Assets
Intangible assets principally comprise technology/technical know-how, tradenames and customer relationships. At
December 31, intangible assets were as follows:
(Stated in millions)
2012
2011
Gross
Book Value
Accumulated
Amortization
Net Book
Value
Gross
Book Value
Accumulated
Amortization
Net Book
Value
Technology/Technical Know-How
$1,967
$ 474
$1,493
$1,875
$341
$1,534
Tradenames
1,647
188
1,459
1,677
131
1,546
Customer Relationships
2,115
312
1,803
1,954
209
1,745
Other
369
322
47
356
299
57
$6,098
$1,296
$4,802
$5,862
$980
$4,882
Amortization expense was $331 million in 2012, $324 million in 2011 and $190 million in 2010.
The weighted average amortization period for all intangible assets is approximately 20 years.
Amortization expense for the subsequent five years is estimated to be as follows: 2013 – $325 million, 2014 – $320
million, 2015 – $311 million, 2016 – $295 million and 2017 – $284 million.
10. Long-term Debt and Debt Facility Agreements
Long-term Debt
consists of the following:
(Stated in millions)
As at December 31,
2012 2011
3.30% Senior Notes due 2021
$1,595
$1,595
4.50% Guaranteed Notes due 2014
(1)
1,324
1,297
2.75% Guaranteed Notes due 2015
(1)
1,318
1,290
1.95% Senior Notes due 2016
1,099
1,099
4.20% Senior Notes due 2021
1,099
1,099
1.25% Senior Notes due 2017
999
–
2.40% Senior Notes due 2022
998
–
5.25% Guaranteed Notes due 2013
(2)
–
649
2.65% Senior Notes due 2016
(3)
500
498
3.00% Guaranteed Notes due 2013
–
450
Floating Rate Senior Notes due 2014
(4)
300
300
Other variable rate debt
277
271
9,509
8,548
Fair value adjustment – hedging
(5)
–
8
$9,509
$8,556
(1)
Schlumberger maintains a
€
3.0 billion Euro Medium Term Note program that provides for the issuance of various
types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies. Schlumberger
issued
€
1.0 billion 2.75% Guaranteed Notes due 2015 in the fourth quarter of 2010 under this program. Schlumberger
entered into agreements to swap these euro notes for US dollars on the date of issue until maturity, effectively
making this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of 2.56%.
Schlumberger also issued
€
1.0 billion 4.50% Guaranteed Notes due 2014 in the first quarter of 2009 under this
program. Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until
maturity, effectively making this a US dollar denominated debt on which Schlumberger will pay interest in US
dollars at a rate of 4.95%.
(2)
Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until maturity,
effectively making this a US dollar-denominated debt on which Schlumberger pays interest in US dollars at a rate of
4.74%.
(3)
Schlumberger entered into agreements to swap these dollar notes for euros on the date of issue until maturity,
effectively making this a euro-denominated debt on which Schlumberger pays interest in euros at a rate of 2.39%.
(4)
These notes bear interest at a rate equal to three-month LIBOR plus 55 basis points per year.
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