income experienced in 2009 and the significant pension plan contributions made during 2009, offset by an
improvement in working capital requirements.
At times in recent periods, Schlumberger has experienced delays in payments from certain of its customers.
Schlumberger operates in approximately 80 countries. At December 31, 2010, only three of those countries
individually accounted for greater than 5% of Schlumberger’s accounts receivable balance of which only one,
the United States, represented greater than 10%.
k
Dividends paid during 2010, 2009 and 2008 were $1.04 billion, $1.01 billion and $0.96 billion, respectively.
In January 2011, Schlumberger announced that its Board of Directors had approved an increase in the
quarterly dividend of 19%, to $0.25.
k
Capital expenditures were $2.9 billion in 2010, $2.4 billion in 2009 and $3.7 billion in 2008. Capital
expenditures in 2008 reflected the record activity levels experienced in that year. The decrease in capital
expenditures in 2009 as compared to 2008 is primarily due to the significant activity decline during 2009.
Capital expenditures are expected to approach $4.0 billion for the full year 2011.
k
During 2010, 2009 and 2008 Schlumberger made contributions of $868 million, $1.1 billion and $290 million,
respectively, to its postretirement benefit plans. The US pension plans were 95% funded at December 31, 2010
based on the projected benefit obligation. This compares to 92% funded at December 31, 2009.
Schlumberger’s international defined benefit pension plans are a combined 92% funded at December 31, 2010
based on the projected benefit obligation. This compares to 85% funded at December 31, 2009.
Schlumberger currently anticipates contributing approximately $600 million to $650 million to its postre-
tirement benefit plans in 2011, subject to market and business conditions.
k
During 2010 and 2008, certain holders of Schlumberger Limited 1.5% Series A Convertible Debentures due
June 1, 2023 and 2.125% Series B Convertible Debentures due June 1, 2023 converted their debentures into
Schlumberger common stock. The following table summarizes these conversions:
Conversions Shares issued Conversions Shares issued
2010
2008
(Stated in millions)
1.5% Series A debentures
$ –
–
$353
9.76
2.125% Series B debentures
321
8.00
95
2.36
$321
8.00
$448
12.12
At December 31, 2008, there were no outstanding Series A debentures. There were $321 million outstanding Series B
debentures at December 31, 2009. During 2010, $320 million of the 2.125% Series B Convertible Debentures due June 1,
2023 were converted by holders into 8.0 million shares of Schlumberger common stock and the remaining $1 million of
outstanding Series B debentures were redeemed for cash.
As of December 31, 2010, Schlumberger had approximately $5.0 billion of cash and short-term investments on hand.
Schlumberger had separate committed debt facility agreements aggregating $6.0 billion with commercial banks, of
which $3.7 billion was available and unused as of December 31, 2010. This included $4.9 billion of committed facilities
which support commercial paper borrowings in the United States and Europe. Schlumberger believes that these
amounts are sufficient to meet future business requirements for at least the next twelve months.
Schlumberger’s total outstanding debt at December 31, 2010 was $8.1 billion and included approximately $1.9 billion
of commercial paper borrowings. The total outstanding debt increased approximately $2.6 billion compared to
December 31, 2009.
On January 10, 2011, Schlumberger issued $1.1 billion of 4.200% Senior Notes due 2021 and $500 million of
2.650% Senior Notes due 2016.
29
Part II, Item 7
