The following is a reconciliation from basic to diluted earnings per share from continuing operations of
Schlumberger for each of the last three years:
(Stated in million except per share amounts)
Schlumberger
Income from
Continuing
Operations
Weighted
Average
Shares
Outstanding
Earnings Per
Share from
from Continuing
Operations
2011:
Basic
$4,777
1,349
$3.54
Assumed exercise of stock options
–
10
Unvested restricted stock
–
2
Diluted
$4,777
1,361
$3.51
2010:
Basic
$ 4,267
1,250
$ 3.41
Assumed conversion of debentures
3
2
Assumed exercise of stock options
–
9
Unvested restricted stock
–
2
Diluted
$ 4,270
1,263
$ 3.38
2009:
Basic
$ 3,156
1,198
$ 2.63
Assumed conversion of debentures
8
8
Assumed exercise of stock options
–
7
Unvested restricted stock
–
1
Diluted
$ 3,164
1,214
$ 2.61
Employee stock options to purchase approximately 14.0 million, 12.5 million and 17.1 million shares of common
stock at December 31, 2011, 2010 and 2009, respectively, were outstanding but were not included in the computation of
diluted earnings per share because the option exercise price was greater than the average market price of the common
stock, and therefore, the effect on diluted earnings per share would have been anti-dilutive.
3. Charges and Credits
Schlumberger recorded the following Charges and Credits in continuing operations during 2011, 2010 and 2009:
2011
Fourth quarter of 2011:
Š
Schlumberger recorded $22 million of pretax merger and integration-related charges ($20 million after-tax)
in connection with the acquisitions of Smith International, Inc. (“Smith”) and Geoservices (see Note 4 –
Acquisitions
).
Š
During the fourth quarter, Schlumberger was able to physically assess the status of its assets in Libya. This
assessment resulted in Schlumberger recording a pretax and after-tax charge of $60 million relating to certain
assets that are no longer recoverable as a result of the political unrest.
Third quarter of 2011:
Š
Schlumberger recorded $27 million of pretax merger and integration-related charges ($23 million after-tax)
in connection with the acquisitions of Smith and Geoservices.
Second quarter of 2011:
Š
Schlumberger made a $50 million grant to the Schlumberger Foundation to support the Foundation’s Faculty
for the Future program, which supports talented women scientists from the developing world by helping them
pursue advanced graduate studies in scientific disciplines at leading universities worldwide. As a result,
Schlumberger recorded a $50 million charge ($40 million after-tax).
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