Schlumberger 2010 Annual Report - page 78

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:
2010 2009 2008
Dividend yield
1.6%
1.1% 0.9%
Expected volatility
36%
44% 34%
Risk free interest rate
0.3%
0.3% 2.7%
Weighted average fair value per share
$10.30
$9.76 $17.21
Total Stock-based Compensation Expense
The following summarizes stock-based compensation expense recognized in income:
2010 2009 2008
(Stated in millions)
Stock options
$121
$118 $111
Restricted stock
44
32
31
DSPP
33
36
30
$198
$186 $172
At December 31, 2010, there was $382 million of total unrecognized compensation cost related to nonvested stock-
based compensation arrangements. Approximately $156 million is expected to be recognized in 2011, $122 million is
expected to be recognized in 2012, $65 million in 2013, $35 million in 2014 and $4 million in 2015.
14. Income Taxes
Schlumberger operates in more than 100 jurisdictions, where statutory tax rates generally vary from 0% to 50%.
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:
2010 2009 2008
(Stated in millions)
United States
$ 638
$ 86 $1,432
Outside United States
4,518
3,848 5,420
$5,156
$3,934 $6,852
Schlumberger recorded $621 million of net pretax credits in 2010 ($226 million of net charges in the US and
$847 million of net credits outside the US). Schlumberger recorded $238 million of pretax charges in 2009 ($73 million in
the US and $165 million outside the US) and $116 million in 2008 ($15 million in the US and $101 million outside the US).
These charges and credits are included in the table above and are more fully described in Note 3 –
Charges and Credits
.
The components of net deferred tax assets (liabilities) were as follows:
2010 2009
(Stated in millions)
Postretirement benefits
$ 327
$ 447
Multiclient seismic data
43
104
Intangible assets
(1,674)
(122)
Investments in non-US subsidiaries
(353)
Other, net
72
101
$(1,585)
$ 530
60
Part II, Item 8
1...,68,69,70,71,72,73,74,75,76,77 79,80,81,82,83,84,85,86,87,88,...108
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