Š
$40 million pretax charge ($36 million after-tax) for the early termination of rig contracts and workforce
reductions in Mexico due to the slowdown of project activity.
Š
Schlumberger repurchased $352 million of its 6.50% Notes due 2012 and, as a result, incurred a pretax charge
of $28 million ($18 million after-tax).
Š
Schlumberger recorded a pretax gain of $1.27 billion ($1.24 billion after-tax) as a result of remeasuring its
previously held 40% equity interest in the M-I SWACO joint venture. Refer to Note 4—
Acquisitions
for further
details.
First quarter of 2010:
Š
Schlumberger incurred $35 million of pretax and after-tax merger-related costs in connection with the Smith
and Geoservices transactions. These costs primarily consisted of advisory and legal fees.
Š
During March 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law in the
United States. Among other things, the PPACA eliminates the tax deductibility of retiree prescription drug
benefits to the extent of the Medicare Part D subsidy that companies, such as Schlumberger, receive. As a
result of this change in law, Schlumberger recorded a $40 million charge to adjust its deferred tax assets to
reflect the loss of this future tax deduction.
The following is a summary of 2010 Charges and Credits:
(Stated in millions)
Pretax Tax
Net
Consolidated Statement
of Income Classification
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 -Oilfield Services
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)
2009
Second quarter of 2009:
Š
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.
Š
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.
45
