The following is a summary of 2010 Charges and Credits:
Pretax Tax
Non-
controlling
Interests
Net Income Statement Classification
(Stated in millions)
Restructuring and Merger-related Charges:
Severance and other
$ 90 $ 13
$– $ 77
Restructuring & other
Impairment relating to WesternGeco’s first generation
Q-Land acquisition system
78
7
–
71
Restructuring & other
Other WesternGeco-related charges
63
–
–
63
Restructuring & other
Professional fees and other
107
1
– 106
Merger & integration
Merger-related employee benefits
58 10
–
48
Merger & integration
Inventory fair value adjustments
153 56
–
97
Cost of revenue
Mexico restructuring
40
4
–
36
Restructuring & other
Repurchase of bonds
60 23
37
Restructuring & other
Total restructuring and merger-related charges
649 114
– 535
Gain on investment in M-I SWACO
(1,270) (32)
– (1,238)
Gain on Investment in M-I SWACO
Impact of elimination of tax deduction related to Medicare
Part D subsidy
– (40)
–
40
Taxes on income
$ (621) $ 42
$– $ (663)
Approximately $165 million of the $649 million of pretax restructuring and merger-related charges described above
represent non-cash charges. The vast majority of the balance of the charges have either been paid or are expected to be
paid within the next three months.
2009
Second quarter of 2009:
k
Schlumberger continued to reduce its global workforce as a result of the slowdown in oil and gas exploration
and production spending and its effect on activity in the oilfield services sector. As a result of these actions,
Schlumberger recorded a pretax charge of $102 million ($85 million after-tax). These workforce reductions
were completed by the end of 2009.
k
As a consequence of these workforce reductions, Schlumberger recorded pretax non-cash pension and other
postretirement benefit curtailment charges of $136 million ($122 million after-tax). Refer to Note 18 –
Pension and Other Benefit Plans
for further details.
The following is a summary of these charges:
Pretax Tax
Non-
controlling
Interests Net Income Statement Classification
(Stated in millions)
Workforce reductions
$102 $17
$– $ 85
Restructuring & other
Postretirement benefits curtailment
136 14
– 122
Restructuring & other
$238 $31
$– $207
2008
Fourth quarter of 2008:
k
Due to the continuing slowdown in oil and gas exploration and production spending and its effect on activity in
the oilfield services sector, Schlumberger took actions to reduce its global workforce. As a result of these
actions, Schlumberger recorded a pretax charge of $74 million ($65 million after-tax).
47
Part II, Item 8
