SCHLUMBERGER LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended December 31,
2010 2009 2008
(Stated in millions)
Cash flows from operating activities:
Net Income
$ 4,266
$ 3,142 $ 5,460
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
(1)
2,759
2,476
2,269
Gain on investment in M-I SWACO
(1,270)
–
–
Earnings of companies carried at equity, less dividends received
(85)
(103)
(235)
Deferred income taxes
(109)
373
(6)
Stock-based compensation expense
198
186
172
Other non-cash items
327
162
128
Pension and other postretirement benefits expense
299
306
127
Pension and other postretirement benefits curtailment charge
–
136
–
Pension and other postretirement benefits funding
(868)
(1,149)
(318)
Change in operating assets and liabilities:
(2)
(Increase) decrease in receivables
(289)
155
(944)
(Increase) decrease in inventories
(67)
64
(299)
Decrease (increase) in other current assets
136
9
(198)
(Decrease) increase in accounts payable and accrued liabilities
(103)
(293)
683
Increase (decrease) in estimated liability for taxes on income
480
(361)
(94)
(Decrease) increase in other liabilities
(89)
43
97
Other – net
(91)
165
57
NET CASH PROVIDED BY OPERATING ACTIVITIES
5,494
5,311
6,899
Cash flows from investing activities:
Capital expenditures
(2,914)
(2,395) (3,723)
Multiclient seismic data capitalized
(326)
(230)
(345)
Cash acquired in merger with Smith International, Inc.
399
–
–
Acquisition of Geoservices, net of cash acquired
(889)
–
–
Other business acquisitions and investments, net of cash acquired
(212)
(514)
(345)
Sale (purchase) of investments, net
1,023
(1,159)
(604)
Other
(19)
228
(132)
NET CASH USED IN INVESTING ACTIVITIES
(2,938)
(4,070) (5,149)
Cash flows from financing activities:
Dividends paid
(1,040)
(1,006)
(964)
Proceeds from employee stock purchase plan
179
96
177
Proceeds from exercise of stock options
222
110
174
Tax benefit on stock options
14
4
137
Stock repurchase program
(1,717)
(500) (1,819)
Proceeds from issuance of long-term debt
2,815
1,973
1,281
Repayment of long-term debt
(1,814)
(1,754)
(601)
Net decrease in short-term borrowings
(68)
(111)
(210)
NET CASH USED IN FINANCING ACTIVITIES
(1,409)
(1,188) (1,825)
Cash flow from discontinued operations – operating activities
–
(45)
63
Net increase (decrease) in cash before translation effect
1,147
8
(12)
Translation effect on cash
–
–
(2)
Cash, beginning of year
617
609
623
Cash, end of year
$ 1,764
$ 617 $ 609
(1) Includes multiclient seismic data costs.
(2) Net of the effect of business acquisitions.
See the
Notes to Consolidated Financial Statements
38
Part II, Item 8
