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
2012:
Basic
$5,439
1,330
$4.09
Assumed exercise of stock options
–
5
Unvested restricted stock
–
4
Diluted
$5,439
1,339
$4.06
2011:
Basic
$ 4,720
1,349
$ 3.50
Assumed exercise of stock options
–
10
Unvested restricted stock
–
2
Diluted
$ 4,720
1,361
$ 3.47
2010:
Basic
$ 4,255
1,250
$ 3.40
Assumed conversion of debentures
3
2
Assumed exercise of stock options
–
9
Unvested restricted stock
–
2
Diluted
$ 4,258
1,263
$ 3.37
Employee stock options to purchase approximately 21.0 million, 14.0 million and 12.5 million shares of common
stock at December 31, 2012, 2011 and 2010, 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 2012, 2011 and 2010:
2012
Š
Schlumberger recorded the following merger and integration-related charges in connection with its 2010
acquisitions of Smith International, Inc. (“Smith”) and Geoservices (see Note 4 –
Acquisitions
).
(Stated in millions)
Pretax Tax Net
First quarter
$ 14 $ 1 $ 13
Second quarter
22 1 21
Third quarter
32 4 28
Fourth quarter
60 10 50
$128 $16 $112
Š
During the fourth quarter, Schlumberger recorded a pretax charge of $33 million ($27 million after-tax)
relating to severance in connection with an initiative to rationalize global overhead costs.
The following is a summary of these charges:
(Stated in millions)
Pretax Tax Ne
t
Consolidated Statement
of Income Classification
Merger-related integration costs
$128 $16 $112
Merger & integration
Workforce reduction
33 6 27
Restructuring & other
$161 $22 $139
43
