Income as % of operating revenue, continuing operations
3
%
(18
)%
4
%
8
%
4
%
Income as % of operating revenue, continuing operations excluding charges
7
%
5
%
6
%
8
%
5
%
Return on capital employed, continuing operations8
10
%
6
%
8
%
9
%
5
%
Return on average stockholders’ equity, continuing operations
8
%
(31
)%
6
%
9
%
4
%
Return on average stockholders’ equity, continuing operations excluding charges
16
%
9
%
10
%
9
%
5
%
Fixed asset additions
$
1,025
$
1,358
$
2,037
$
1,311
$
787
Depreciation expense
$
1,200
$
1,245
$
1,172
$
930
$
917
Avg. number of shares outstanding:
Basic
584
579
574
570
549
Assuming dilution
586
579
580
580
564
ON DECEMBER 31
Net debt7
$
(4,176
)
$
(5,021
)
$
(5,037
)
$
422
$
1,231
Working capital
$
1,554
$
735
$
1,487
$
3,502
$
4,787
Total assets
$
20,041
$
19,435
$
22,326
$
17,173
$
15,081
Long-term debt
$
6,097
$
6,029
$
6,216
$
3,573
$
3,183
Stockholders’ equity
$
5,881
$
5,606
$
8,378
$
8,295
$
7,721
Number of employees continuing operations
77,000
77,500
79,000
58,000
53,000
1.
Reclassified, in part, for organization changes and discontinued operations.
2.
Acquired on April 1, 2001 and divested on January 29, 2004.
3.
Includes the Axalto (Smart Cards and Point-of-Sale Terminals), Electricity Meters, Business Continuity, Infodata, Telecom Software Products, Water Services, Essentis, Payphones and the divested Resource Management Services (sold in 2001) businesses.
4.
Includes amortization of goodwill and other acquisition related intangibles.
In 2003, the provision for income tax before the tax benefit on the charges was $303 million. In 2002, the provision for income tax before the net tax expense on the charges was $249 million. In 2001, the provision for income taxes, before the tax expense on the charges was $401 million. In 2000, the provision for income taxes, before the tax benefit on the charges was $212 million. In 1999, the provision for income taxes, before the tax benefit on the charge and the tax expense on the gain on the sale of financial instruments, was $123 million.
Return on capital employed, continuing operations is computed as: [Net income from continuing operations excluding charges + Minority interest + Interest expense - Interest income - Tax benefit on interest expense] divided by [Shareholders' equity + Net debt + Minority interest]. The charges excluded were 2003 - $440 million; 2002 - $3.11 billion; 2001 - $297 million; 2000 - $3 million; 1999 - 128 million. Schlumberger management believes that the exclusion of these charges, which results in a non-GAAP measure, enables it to evaluate more effectively the company's operations, period over period, and to identify operating trends that could otherwise be masked by the excluded charges.
