The effect of derivative instruments designated as fair value hedges and not designated as hedges on the
Consolidated Statement of Income
was as follows:
(Stated in millions)
Gain (Loss) Recognized in
Income
2012
2011
2010 Consolidated Statement of Income Classifiaction
Derivatives designated as fair value hedges:
Foreign exchange contracts
$–
$ –
$ (8)
Cost of revenue
Interest rate swaps
1
9
22
Interest expense
$1
$ 9
$ 14
Derivatives not designated as hedges:
Foreign exchange contracts
$5
$(17)
$(13)
Cost of revenue
Commodity contracts
1
(5)
1
Cost of revenue
$6
$(22)
$(12)
The effect of derivative instruments in cash flow hedging relationships on income and
Accumulated other
comprehensive loss
(AOCL) was as follows:
(Stated in millions)
Gain (Loss) Reclassified from
AOCL into Income
2012
2011
2010 Consolidated Statement of Income Classification
Foreign exchange contracts
$ 49
$(25)
$(260)
Cost of revenue
Foreign exchange contracts
(13)
17
(14)
Research & engineering
$ 36
$ (8)
$(274)
(Stated in millions)
Gain (Loss) Recognized in AOCL
2012
2011
2010
Foreign exchange contracts
$92
$(79)
$(269)
12. Stockholders’ Equity
Schlumberger is authorized to issue 4,500,000,000 shares of common stock, par value $0.01 per share, of which
1,328,255,773 and 1,333,775,406 shares were outstanding on December 31, 2012 and 2011, respectively. Holders of
common stock are entitled to one vote for each share of stock held. Schlumberger is also authorized to issue
200,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in series with terms and
conditions determined by the Board of Directors. No shares of preferred stock have been issued.
Accumulated Other Comprehensive Loss
consists of the following:
(Stated in millions)
2012 2011 2010
Currency translation adjustments
$ (918)
$ (993) $ (912)
Fair value of derivatives
30
(26)
45
Pension and other postretirement benefit plans
(3,141)
(2,538) (1,901)
Unrealized gains on marketable securities
141
–
–
$(3,888)
$(3,557) $(2,768)
Other comprehensive loss was $331 million, $789 million and $94 million in 2012, 2011 and 2010, respectively.
13. Stock-based Compensation Plans
Schlumberger has three types of stock-based compensation programs: stock options, a restricted stock and
restricted stock unit program (collectively referred to as “restricted stock”) and a discounted stock purchase plan
(“DSPP”).
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