Postretirement Benefits Other than Pensions
Schlumberger provides certain health care benefits to former US employees who have retired.
The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic
benefit cost for the US postretirement medical plan were as follows:
Benefit Obligation
at December 31,
Net Periodic Benefit Cost
for the year
2011 2010
2011 2010 2009
Discount rate
5.00%
5.50%
5.50%
6.00% 6.94%
Return on plan assets
–
–
7.00%
8.00% 8.00%
Current medical cost trend rate
8.00%
8.00%
8.00%
8.00% 8.00%
Ultimate medical cost trend rate
5.00%
5.00%
5.00%
5.00% 5.00%
Year that the rate reaches theultimate trend rate
2018
2017
2017
2016 2015
The net periodic benefit cost for the US postretirement medical plan included the following components:
(Stated in millions)
2011 2010 2009
Service cost – benefits earned during the period
$ 24
$ 23 $ 19
Interest cost on projected benefit obligation
57
58
56
Expected return on plan assets
(20)
(6)
(2)
Amortization of prior service credit
(12)
(21) (25)
Amortization of net loss
13
11
3
62
65
51
Curtailment charge
–
–
6
$ 62
$ 65 $ 57
The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:
(Stated in millions)
2011 2010
Change in Accumulated Postretirement Benefit Obligation
Benefit obligation at beginning of year
$1,051
$ 991
Service cost
24
23
Interest cost
57
58
Contributions by plan participants
6
4
Actuarial losses
90
8
Benefits paid
(40)
(33)
Benefit obligation at end of year
$1,188
$1,051
Change in Plan Assets
Plan assets at fair value at beginning of year
$ 290
$ 58
Company contributions
165
248
Contributions by plan participants
6
5
Benefits paid
(40)
(33)
Actual return on plan assets
22
12
Plan assets at fair value at end of year
$ 443
$ 290
Unfunded Liability
$ (745)
$ (761)
Amounts Recognized in Accumulated
Other Comprehensive Loss
Actuarial losses
$ 286
$ 212
Prior service cost
(24)
(35)
$ 262
$ 177
The unfunded liability is included in Postretirement Benefits in the Consolidated Balance Sheet.
The assets of the US postretirement medical plan are invested 60% in US equity securities and 40% in government
and government-related debt securities. The fair value of these assets were determined based on quoted prices in
active markets for identical instruments.
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