The following table summarizes information about restricted stock transactions:
(Shares stated in thousands)
2012
2011
2010
Restricted
Stock
Weighted
Average
Grant Date
Fair Value
Restricted
Stock
Weighted
Average
Grant Date
Fair Value
Restricted
Stock
Weighted
Average
Grant Date
Fair Value
Unvested at beginning of year
2,433
$72.25
2,223
$64.27
1,343
$62.75
Granted
1,668
71.09
1,136
84.61
1,261
65.79
Vested
(351)
52.26
(767)
67.36
(286)
63.92
Forfeited
(184)
73.38
(159)
72.51
(95)
64.16
Unvested at end of year
3,566
$73.62
2,433
$72.25
2,223
$64.27
Discounted Stock Purchase Plan
Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld, subject to certain
restrictions, to purchase Schlumberger common stock. The purchase price of the stock is 92.5% of the lower of the
stock price at the beginning or end of the plan period at six-month intervals.
The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with
the following assumptions and resulting weighted average fair value per share:
2012
2011 2010
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.6%
1.2% 1.6%
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41%
28% 36%
Risk free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.2%
0.2% 0.3%
Weighted average fair value per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.71
$12.83 $10.30
Total Stock-based Compensation Expense
The following summarizes stock-based compensation expense recognized in income:
(Stated in millions)
2012
2011 2010
Stock options
$203
$176 $121
Restricted stock
82
60 44
DSPP
50
36 33
$335
$272 $198
At December 31, 2012, there was $565 million of total unrecognized compensation cost related to nonvested stock-
based compensation arrangements of which $234 million is expected to be recognized in 2013, $180 million in 2014,
$108 million in 2015, $42 million in 2016 and $1 million in 2017.
14. Income Taxes
Schlumberger operates in more than 100 tax jurisdictions, where statutory tax rates generally vary from 0% to 40%.
Income from continuing operations before taxes
which were subject to United States and non-United States income
taxes for each of the three years ended December 31, was as follows:
(Stated in millions)
2012
2011 2010
United States
$1,980
$2,246 $ 617
Outside United States
5,211
3,993 4,515
$7,191
$6,239 $5,132
Schlumberger recorded $161 million of pretax charges in 2012 ($52 million in the US and $109 million outside the
US). Schlumberger recorded $223 million of net pretax charges in 2011 ($104 million in the US and $119 million
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