Schlumberger recorded $32 million of pretax merger and integration-related charges ($24 million after-tax)
in connection with the acquisitions of Smith and Geoservices.
First quarter of 2011:
Š
Schlumberger recorded $34 million of pretax merger and integration-related charges ($28 million after-tax)
in connection with the acquisitions of Smith and Geoservices.
The following is a summary of these charges:
(Stated in millions)
Pretax Tax Net
Consolidated Statement
of Income Classification
Merger-related integration costs
$115 $19 $ 96
Merger & integration
Donation to the Schlumberger Foundation
50 10 40
General & administrative
Write-off of assets in Libya
60 – 60
Cost of revenue -Oilfield Services
$225 $29 $196
2010
Fourth quarter of 2010:
Š
In connection with the acquisition of Smith, Schlumberger recorded the following pretax charges: $115
million ($73 million after-tax) relating to the amortization of purchase accounting adjustments associated
with the write-up of acquired inventory to its estimated fair value, $17 million ($16 million after-tax) of
professional and other fees and $16 million ($12 million after-tax) relating to employee benefits.
Š
Schlumberger repurchased the following debt:
(Stated in millions)
Carrying
Value
6.50% Notes due 2012
$297
6.75% Senior Notes due 2011
$123
9.75% Senior Notes due 2019
$212
6.00% Senior Notes due 2016
$102
8.625% Senior Notes due 2014
$ 88
As a result of these transactions, Schlumberger incurred pretax charges of $32 million ($20 million after-tax).
Third quarter of 2010:
Š
As a result of the decision to rationalize support costs across the organization as well as to restructure the
North America land operations to provide greater operating efficiency, Schlumberger recorded a pretax
charge of $90 million ($77 million after-tax).
Š
Following the successful introduction of UniQ, a new generation single-sensor land acquisition system,
Schlumberger recorded a $78 million pretax charge ($71 million after-tax), related to the impairment of
WesternGeco’s first generation Q-Land system assets.
Š
A pretax and after-tax charge of $63 million primarily relating to the early termination of a vessel lease
associated with WesternGeco’s electromagnetic service offering as well as related assets, including a $30
million impairment related to an equity-method investment.
Š
In connection with the acquisition of Smith, Schlumberger recorded the following pretax charges: $56 million
($55 million after-tax) of merger-related transaction costs including advisory and legal fees, $41 million ($35
million after-tax) relating to employee benefits for change in control payments and retention bonuses and $38
million ($24 million after-tax) relating to the amortization of purchase accounting adjustments associated
with the write-up of acquired inventory to its estimated fair value.
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