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Charges

3. Charges

Schlumberger recorded the following charges during the first six months of 2010 and 2009:

2010

First quarter of 2010:

•

Schlumberger incurred $35 million of merger-related costs in connection with the Smith and Geoservices transactions (see Notes 2 and 5). These costs primarily consist of advisory and legal fees and are classified in Merger & integration in the Consolidated Statement of Income.

•

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. This charge is classified in Taxes on income in the Consolidated Statement of Income.

The following is a summary of these charges:


	(Stated in millions)
	Pretax		Tax		Net
Charges
- Merger-related transaction costs	$	35	$	—	$	35
- Impact of elimination of tax deduction related to Medicare Part D subsidy		—		40		40

	$	35	$	40	$	75

2009

Second quarter of 2009:

•

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), which is classified in Cost of revenue in the Consolidated Statement of Income.

•

Schlumberger experienced a significant reduction in the expected aggregate years of future service of its employees in certain of its pension plans and its postretirement medical plan as a consequence of the above mentioned workforce reductions. Accordingly, Schlumberger recorded pretax non-cash pension and other postretirement benefit curtailment charges of $136 million ($122 million after-tax). The curtailment charge included recognition of the change in benefit obligations as well as a portion of the previously unrecognized prior service costs, reflecting the reduction in expected future service for the impacted plans. These costs are classified in Cost of revenue in the Consolidated Statement of Income.

The following is a summary of these charges:


	(Stated in millions)
	Pretax		Tax			Net
Charges
- Workforce reductions	$	102	$	(17	)	$	85
- Postretirement benefits curtailment		136		(14	)		122

	$	238	$	(31	)	$	207

Earnings Per Share

6 Months Ended

Jun. 30, 2010

Earnings Per Share

4. Earnings Per Share

The following is a reconciliation from basic earnings per share of Schlumberger to diluted earnings per share of Schlumberger:


						(Stated in millions, except per share amounts)
	2010					2009
Second Quarter	Schlumberger Net Income		Average Shares Outstanding	Earnings per Share		Schlumberger Net Income		Average Shares Outstanding	Earnings per Share
Basic	$	818	1,192	$	0.69	$	613	1,197	$	0.51

Assumed conversion of debentures		1	6				2	8
Assumed exercise of stock options		—	8				—	8
Unvested restricted stock		—	2				—	1

Diluted	$	819	1,208	$	0.68	$	615	1,214	$	0.51


Six Months	Schlumberger Net Income		Average Shares Outstanding	Earnings per Share		Schlumberger Net Income		Average Shares Outstanding	Earnings per Share
Basic	$	1,490	1,194	$	1.25	$	1,552	1,197	$	1.30

Assumed conversion of debentures		3	6				4	8
Assumed exercise of stock options		—	9				—	6
Unvested restricted stock		—	2				—	1

Diluted	$	1,493	1,211	$	1.23	$	1,556	1,212	$	1.28

The number of outstanding options to purchase shares of Schlumberger common stock which were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, were as follows:


	(Stated in millions)
	2010	2009
Second Quarter	14	17
Six Months	13	17

Acquisitions

6 Months Ended

Jun. 30, 2010

Acquisitions

5. Acquisitions

On April 23, 2010, Schlumberger completed the acquisition of Geoservices, a privately owned oilfield services company specializing in mud logging, slickline and production surveillance operations, for approximately $915 million in cash.

The purchase price has been preliminarily allocated to the net assets acquired upon their estimated fair values as follows:


(Stated in millions)
Cash	$	26
Other assets		183
Fixed assets		91
Goodwill		466
Intangible assets		546
Long-term debt		(144	)
Deferred tax liabilities		(98	)
Other liabilities		(155	)

	$	915

The recorded amounts for certain assets and liabilities, primarily relating to intangible assets, goodwill and deferred tax liabilities, are preliminary and subject to change. Any further adjustments are not expected to be material.

Geoservices’ long-term debt was repaid at the time of closing. Schlumberger will record the results of Geoservices one month in arrears. Geoservices’ revenue in 2009 was approximately $500 million.

Intangible assets recorded in connection with this transaction, which primarily relate to customer relationships, will be amortized over a weighted average period of approximately 19 years.

The amount allocated to goodwill represents the excess of the purchase price over the fair value of the net assets acquired. The goodwill is not tax deductible.

Other Acquisitions

During the first six months of 2010, Schlumberger made certain other acquisitions and minority interest investments for $145 million, net of cash acquired, none of which were significant on an individual basis or in the aggregate.

Pro forma results pertaining to the above acquisitions are not presented as the impact was not significant.

Inventory

6 Months Ended

Jun. 30, 2010

Inventory

6. Inventory

A summary of inventory follows:


	(Stated in millions)
	Jun. 30 2010		Dec. 31 2009
Raw materials & field materials	$	1,665	$	1,646
Work in process		84		74
Finished goods		116		146

	$	1,865	$	1,866

Fixed Assets

6 Months Ended

Jun. 30, 2010

Fixed Assets

7. Fixed Assets

A summary of fixed assets follows:


	(Stated in millions)
	Jun. 30 2010		Dec. 31 2009
Property, plant & equipment	$	22,279	$	21,505
Less: Accumulated depreciation		12,622		11,845

	$	9,657	$	9,660

Depreciation expense relating to fixed assets was as follows:


	(Stated in millions)
	2010		2009
Second Quarter	$	558	$	537
Six Months	$	1,105	$	1,067

Multiclient Seismic Data

6 Months Ended

Jun. 30, 2010

Multiclient Seismic Data

8. Multiclient Seismic Data

The change in the carrying amount of multiclient seismic data for the six months ended June 30, 2010 was as follows:


	(Stated in millions)
Balance at December 31, 2009	$	288
Capitalized in period		172
Charged to cost of revenue		(91	)

Balance at June 30, 2010	$	369

Goodwill

6 Months Ended

Jun. 30, 2010

Goodwill

9. Goodwill

The changes in the carrying amount of goodwill by business segment for the six months ended June 30, 2010 were as follows:


				(Stated in millions)
	Oilfield Services			Western Geco		Total
Balance at December 31, 2009	$	4,290		$	1,015	$	5,305
Additions		557			17		574
Impact of change in exchange rates		(25	)		—		(25	)

Balance at June 30, 2010	$	4,822		$	1,032	$	5,854

Intangible Assets

6 Months Ended

Jun. 30, 2010

Intangible Assets

10. Intangible Assets

Intangible assets principally comprise software, technology and customer relationships. The gross book value and accumulated amortization of intangible assets were as follows:


							(Stated in millions)
	Jun. 30, 2010						Dec. 31, 2009
	Gross Book Value		Accumulated Amortization		Net Book Value		Gross Book Value		Accumulated Amortization		Net Book Value
Software	$	332	$	261	$	71	$	339	$	262	$	77
Technology		704		178		526		527		163		364
Customer Relationships		746		93		653		355		80		275
Other		169		59		110		121		51		70

	$	1,951	$	591	$	1,360	$	1,342	$	556	$	786

Amortization expense charged to income was as follows:

The weighted average amortization period for all intangible assets is approximately 14 years.

Based on the net book value of intangible assets at June 30, 2010, amortization charged to income for the subsequent five years is estimated to be: remainder of 2010 – $69 million; 2011 – $134 million; 2012 – $122 million; 2013 – $107 million; 2014 – $97 million and 2015 – $89 million.

Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2010

Derivative Instruments and Hedging Activities

11. Derivative Instruments and Hedging Activities

Schlumberger is exposed to market risks related to fluctuations in foreign currency exchange rates, commodity prices and interest rates. To mitigate these risks, Schlumberger utilizes derivative instruments. Schlumberger does not enter into derivatives for speculative purposes.

Foreign Currency Exchange Rate Risk

As a multinational company, Schlumberger conducts its business in approximately 80 countries. Schlumberger’s functional currency is primarily the US dollar, which is consistent with the oil and gas industry. However, outside the United States, a significant portion of Schlumberger’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which Schlumberger conducts business, the US dollar – reported expenses will increase (decrease).

Schlumberger is exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that are other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the effective portion of changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Other Comprehensive Income (Loss). Amounts recorded in Other Comprehensive Income (Loss) are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of the hedged item is recorded directly to earnings.

At June 30, 2010, Schlumberger recognized a cumulative net $41 million loss in Equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges, the majority of which is expected to be reclassified into earnings within the next twelve months.

Schlumberger is also exposed to changes in the fair value of assets and liabilities, including certain of its long-term debt, which are denominated in currencies other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to hedge this exposure as it relates to certain currencies. These contracts are accounted for as fair value hedges with the fair value of the contracts recorded on the Consolidated Balance Sheet and changes in the fair value recognized in the Consolidated Statement of Income along with the change in fair value of the hedged item.

At June 30, 2010, contracts were outstanding for the US dollar equivalent of $3.8 billion in various foreign currencies.

Commodity Price Risk

Schlumberger is exposed to the impact of market fluctuations in the price of commodities, such as copper and lead. Schlumberger has entered into forward contracts on these commodities to manage the price risk associated with forecasted purchases. The objective of these contracts is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. These contracts do not qualify for hedge accounting treatment and therefore, changes in the fair value of the forward contracts are recorded directly to earnings.

Interest Rate Risk

Schlumberger is subject to interest rate risk on its debt and its investment portfolio. Schlumberger maintains an interest rate risk management strategy that uses a mix of variable and fixed rate debt combined with its investment portfolio and interest rate swaps to mitigate the exposure to changes in interest rates.

During the third quarter of 2009, Schlumberger entered into interest rate swaps relating to two of its debt instruments. The first swap was for a notional amount of $600 million in order to hedge a portion of the changes in fair value of Schlumberger’s $650 million 6.50% Notes due 2012. Under the terms of this swap agreement, Schlumberger will receive interest at a fixed rate of 6.5% semi-annually and will pay interest semi-annually at a floating rate of one-month LIBOR plus a spread of 4.84%. The second swap was for a notional amount of $450 million in order to hedge changes in the fair value of Schlumberger’s $450 million 3.00% Notes due 2013. Under the terms of this swap, Schlumberger will receive interest at a fixed rate of 3.0% annually and will pay interest quarterly at a floating rate of three-month LIBOR plus a spread of 0.765%.

These interest rate swaps are designated as fair value hedges of the underlying debt. These derivative instruments are marked to market with gains and losses recognized currently in income to offset the respective losses and gains recognized on changes in the fair value of the hedged debt. This results in no net gain or loss being recognized in the Consolidated Statement of Income.

At June 30, 2010, Schlumberger had fixed rate debt aggregating approximately $2.4 billion and variable rate debt aggregating approximately $2.1 billion, after taking into account the effects of the interest rate swaps.

Short-term investments and Fixed income investments, held to maturity, totaled approximately $3.5 billion at June 30, 2010, and are comprised primarily of money market funds, eurodollar time deposits, certificates of deposit, commercial paper, euro notes and Eurobonds, and are substantially all denominated in US dollars. The carrying value of these investments approximates fair value, which was estimated using quoted market prices for those or similar investments.

The fair values of outstanding derivative instruments is summarized as follows:


(Stated in millions)
	Fair Value of Derivatives				Classification
	Jun. 30 2010		Dec. 31 2009
Derivative assets
Derivative designated as hedges:
Foreign exchange contracts	$	2	$	14	Other current assets
Foreign exchange contracts		—		216	Other Assets
Interest rate swaps		22		—	Other Assets

	$	24	$	230

Derivative not designated as hedges:
Commodity contracts	$	1	$	1	Other current assets
Foreign exchange contracts		5		11	Other current assets
Foreign exchange contracts		12		28	Other Assets

	$	18	$	40

	$	42	$	270

Derivative Liabilities
Derivative designated as hedges:
Foreign exchange contracts	$	33	$	15	Accounts payable and accrued liabilities
Foreign exchange contracts		199		51	Other Liabilities

	$	232	$	66

Derivative not designated as hedges:
Commodity contracts	$	1	$	3	Accounts payable and accrued liabilities
Foreign exchange contracts		3		—	Accounts payable and accrued liabilities
Foreign exchange contracts		—		25	Other Liabilities

	$	4	$	28

	$	236	$	94

The fair value of all outstanding derivatives is determined using a model with inputs that are observable in the market or can be derived from or corroborated by observable data.

The effect on the Consolidated Statement of Income of derivative instruments designated as fair value hedges and those not designated as hedges was as follows:


(Stated in millions)
	Gain/(Loss) Recognized in Income
	Second Quarter					Six Months
	2010			2009		2010			2009			Classification
Derivatives designated as fair value hedges:
Foreign exchange contracts	$	—		$	61	$	(13	)	$	39		Cost of revenue
Interest rate swaps		4			—		9			—		Interest expense

	$	4		$	61	$	(4	)	$	39

Derivatives not designated as hedges:
Foreign exchange contracts	$	(38	)	$	1	$	(45	)	$	(22	)	Cost of revenue
Commodity contracts		(1	)		1		(2	)		—		Cost of revenue

	$	(39	)	$	2	$	(47	)	$	(22	)

The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) was as follows:


(Stated in millions)
	Gain (Loss) Reclassified from Accumulated OCI into Income												Classification
	Second Quarter						Six Months
	2010			2009			2010			2009
Foreign exchange contracts	$	(200	)	$	91		$	(335	)	$	27		Cost of revenue
Foreign exchange contracts		(5	)		(7	)		(6	)		(14	)	Research & engineering

	$	(205	)	$	84		$	(341	)	$	13


(Stated in millions)
	Gain (Loss) Recognized in OCI
	Second Quarter						Six Months
	2010			2009			2010			2009
Foreign exchange contracts	$	(264	)	$	227		$	(422	)	$	168

Long-term Debt

6 Months Ended

Jun. 30, 2010

Long-term Debt

12. Long-term Debt

A summary of Long-Term Debt follows:


	(Stated in millions)
	Jun. 30, 2010		Dec. 31, 2009
5.25% Guaranteed Notes due 2013	$	614	$	727
6.50% Notes due 2012		649		649
5.875% Guaranteed Bonds due 2011		311		362
4.50% Guaranteed Bonds due 2014		1,227		1,449
3.00% Guaranteed Notes due 2013		450		449
Commercial paper borrowings		234		358
Other variable rate debt		222		360

		3,707		4,354
Fair value adjustment—hedging		22		1

	$	3,729	$	4,355

The fair value adjustment presented above represents changes in the fair value of the portion of Schlumberger’s fixed rate debt that is hedged through the use of interest rate swaps.

The fair value of Schlumberger’s Long-term Debt at June 30, 2010 and December 31, 2009 was $4.0 billion and $4.6 billion, respectively and was estimated based on quoted market prices.

At December 31, 2009 there were $321 million outstanding of 2.125% Series B Convertible Debentures due June 1, 2023. The fair value of these Series B debentures at December 31, 2009 was $527 million. During the six months ended June 30, 2010, $320 million of these debentures were converted by holders into 7,997,300 shares of Schlumberger common stock and the remaining $1 million of outstanding Series B debentures were redeemed for cash.

Income Tax

6 Months Ended

Jun. 30, 2010

Income Tax

13. Income Tax

Income from Continuing Operations before taxes which was subject to US and non-US income taxes was as follows:


						(Stated in millions)
	Second Quarter					Six Months
	2010		2009			2010		2009
United States	$	83	$	(64	)	$	144	$	40
Outside United States		911		831			1,738		1,920

	$	994	$	767		$	1,882	$	1,960

During the first quarter of 2010, Schlumberger recorded pretax charges of $35 million outside of the US. During the second quarter of 2009, Schlumberger recorded pretax charges of $73 million in the US and $165 million outside of the US. These charges are included in the table above and are more fully described in Note 3—Charges.

The components of net deferred tax assets were as follows:


	(Stated in millions)
	Jun. 30 2010			Dec. 31 2009
Postretirement benefits, net	$	392		$	447
Multiclient seismic data		100			104
Intangible assets		(246	)		(122	)
Other, net		101			101

	$	347		$	530

The above deferred tax assets at June 30, 2010 and December 31, 2009 are net of valuation allowances relating to net operating losses in certain countries of $220 million and $251 million, respectively. The deferred tax assets are also net of valuation allowances relating to a capital loss carryforward of $16 million at June 30, 2010 ($17 million at December 31, 2009), which expires in 2010 and a foreign tax credit carryforward of $21 million at June 30, 2010 ($30 million at December 31, 2009) which expires in 2012.

The components of consolidated Taxes on income were as follows:


	(Stated in millions)
	Second Quarter						Six Months
	2010			2009			2010			2009
Current:
United States - Federal	$	26		$	(20	)	$	48		$	(55	)
United States - State		3			(1	)		6			(2	)
Outside United States		150			169			306			380

	$	179		$	148		$	360		$	323

Deferred:
United States - Federal	$	(3	)	$	(2	)	$	39		$	71
United States - State		—			—			2			4
Outside United States		10			6			—			7
Valuation allowance		(9	)		—			(10	)		(1	)

	$	(2	)	$	4		$	31		$	81

Consolidated taxes on income	$	177		$	152		$	391		$	404

A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows:


	Second Quarter				Six Months
	2010		2009		2010		2009
US federal statutory rate	35	%	35	%	35	%	35	%
Non-US income taxed at different rates	(14	)	(16	)	(14	)	(15	)
Effect of equity method investment	(1	)	(1	)	(1	)	—
Charges (See Note 3)	—		2		2		2
Other	(2	)	—		(1	)	(1	)

Effective income tax rate	18	%	20	%	21	%	21	%

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2010
Statement [Line Items]
Contingencies	14. Contingencies In 2007, Schlumberger received an inquiry from the United States Department of Justice (“DOJ”) related to the DOJ’s investigation of whether certain freight forwarding and customs clearance services of Panalpina, Inc., and other companies provided to oil and oilfield service companies, including Schlumberger, violated the Foreign Corrupt Practices Act. Schlumberger is cooperating with the DOJ and is currently continuing its own investigation with respect to these services. In 2009, Schlumberger learned that United States officials began a grand jury investigation and an associated regulatory inquiry, both related to certain Schlumberger operations in specified countries that are subject to United States trade and economic sanctions. Schlumberger is cooperating with the governmental authorities and is currently unable to predict the outcome of these matters. Schlumberger and its subsidiaries are party to various other legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. At this time the ultimate disposition of these proceedings is not determinable and therefore, it is not possible to estimate the amount of loss or range of possible losses that might result from an adverse judgment or settlement in any of these matters. However, in the opinion of management, any liability that might ensue would not be material in relation to Schlumberger’s consolidated liquidity, financial position or future results of operations.

Segment Information

6 Months Ended

Jun. 30, 2010

Segment Information

15. Segment Information

Schlumberger operates two business segments: Oilfield Services and WesternGeco.


						(Stated in millions)
	Second Quarter 2010					Second Quarter 2009
	Revenue		Income before taxes			Revenue		Income before taxes
Oilfield Services
North America	$	1,115	$	116		$	819	$	8
Latin America		1,144		205			995		176
Europe/CIS/Africa		1,740		319			1,782		432
Middle East & Asia		1,371		427			1,312		421
Other		66		7			48		(15	)

		5,436		1,074			4,956		1,022
WesternGeco		476		47			559		97

Corporate & Other		25		(90	)		13		(77	)
Interest Income ⁽¹⁾		—		11			—		13
Interest Expense ⁽²⁾		—		(48	)		—		(50	)
Charges		—		—			—		(238	)

	$	5,937	$	994		$	5,528	$	767

1.	Excludes interest income included in the segment results ($4 million in 2010; $4 million in 2009).

2.	Excludes interest expense included in the segment results ($5 million in 2010; $11 million in 2009).


						(Stated in millions)
	Six Months 2010					Six Months 2009
	Revenue		Income before taxes			Revenue		Income before taxes
Oilfield Services
North America	$	2,148	$	198		$	2,011	$	171
Latin America		2,200		390			2,024		378
Europe/CIS/Africa		3,365		613			3,585		899
Middle East & Asia		2,693		837			2,687		876
Other		127		4			88		(46	)

		10,533		2,042			10,395		2,278
WesternGeco		948		114			1,110		151

Corporate & Other		53		(171	)		23		(166	)
Interest Income ⁽¹⁾		—		24			—		27
Interest Expense ⁽²⁾		—		(92	)		—		(92	)
Charges		—		(35	)		—		(238	)

	$	11,534	$	1,882		$	11,528	$	1,960

1.	Excludes interest income included in the segment results ($7 million in 2010; $9 million in 2009).

2.	Excludes interest expense included in the segment results ($6 million in 2010; $24 million in 2009).

Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2010

Pension and Other Postretirement Benefits

16. Pension and Other Postretirement Benefits

Net pension cost for the Schlumberger pension plans included the following components:


													(Stated in millions)
	Second Quarter												Six Months
	2010						2009						2010						2009
	US			Int’l			US			Int’l			US			Int’l			US			Int’l
Service cost—benefits earned during period	$	13		$	10		$	14		$	15		$	28		$	24		$	30		$	29
Interest cost on projected benefit obligation		35			51			38			45			71			103			77			90
Expected return on plan assets		(47	)		(57	)		(45	)		(40	)		(95	)		(115	)		(88	)		(80	)
Amortization of net loss		15			5			9			—			31			10			18			—
Amortization of prior service cost		1			29			1			31			2			57			3			62

		17			38			17			51			37			79			40			101
Curtailment charge		—			—			32			98			—			—			32			98

	$	17		$	38		$	49		$	149		$	37		$	79		$	72		$	199

During the first six months of 2010, Schlumberger made contributions to its international defined benefit pension plans of $97 million.

The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components:


							(Stated in millions)
	Second Quarter						Six Months
	2010			2009			2010			2009
Service cost—benefits earned during period	$	6		$	5		$	11		$	12
Interest cost on accumulated postretirement benefit obligation		14			14			29			26
Expected return on plan assets		(2	)		—			(3	)		(1	)
Amortization of prior service cost		(5	)		(7	)		(10	)		(14	)
Amortization of net loss		2			2			6			5

	$	15		$	14		$	33		$	28
Curtailment charge		—			6			—			6

	$	15		$	20		$	33		$	34

During the first six months of 2010, Schlumberger made a contribution to the US postretirement medical plan of $33 million.

Charges (Tables)

6 Months Ended

Jun. 30, 2010

Schedule of Restructuring and Related Costs

Schlumberger recorded the following charges during the first six months of 2010 and 2009:

2010

First quarter of 2010:

•

The following is a summary of these charges:


	(Stated in millions)
	Pretax		Tax		Net
Charges
- Merger-related transaction costs	$	35	$	—	$	35
- Impact of elimination of tax deduction related to Medicare Part D subsidy		—		40		40

	$	35	$	40	$	75

2009

Second quarter of 2009:

•

The following is a summary of these charges:


	(Stated in millions)
	Pretax		Tax			Net
Charges
- Workforce reductions	$	102	$	(17	)	$	85
- Postretirement benefits curtailment		136		(14	)		122

	$	238	$	(31	)	$	207

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2010

Reconciliation of Earnings Per Share

The following is a reconciliation from basic earnings per share of Schlumberger to diluted earnings per share of Schlumberger:


						(Stated in millions, except per share amounts)
	2010					2009
Second Quarter	Schlumberger Net Income		Average Shares Outstanding	Earnings per Share		Schlumberger Net Income		Average Shares Outstanding	Earnings per Share
Basic	$	818	1,192	$	0.69	$	613	1,197	$	0.51

Assumed conversion of debentures		1	6				2	8
Assumed exercise of stock options		—	8				—	8
Unvested restricted stock		—	2				—	1

Diluted	$	819	1,208	$	0.68	$	615	1,214	$	0.51


Six Months	Schlumberger Net Income		Average Shares Outstanding	Earnings per Share		Schlumberger Net Income		Average Shares Outstanding	Earnings per Share
Basic	$	1,490	1,194	$	1.25	$	1,552	1,197	$	1.30

Assumed conversion of debentures		3	6				4	8
Assumed exercise of stock options		—	9				—	6
Unvested restricted stock		—	2				—	1

Diluted	$	1,493	1,211	$	1.23	$	1,556	1,212	$	1.28

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	(Stated in millions)
	2010	2009
Second Quarter	14	17
Six Months	13	17

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2010

Business Combination, Preliminary Allocation of the Purchase Price Disclosure

The purchase price has been preliminarily allocated to the net assets acquired upon their estimated fair values as follows:


(Stated in millions)
Cash	$	26
Other assets		183
Fixed assets		91
Goodwill		466
Intangible assets		546
Long-term debt		(144	)
Deferred tax liabilities		(98	)
Other liabilities		(155	)

	$	915

Inventory (Tables)

6 Months Ended

Jun. 30, 2010

Inventory Disclosure Table

A summary of inventory follows:


	(Stated in millions)
	Jun. 30 2010		Dec. 31 2009
Raw materials & field materials	$	1,665	$	1,646
Work in process		84		74
Finished goods		116		146

	$	1,865	$	1,866

Fixed Assets (Tables)

6 Months Ended

Jun. 30, 2010

Property, Plant and Equipment

A summary of fixed assets follows:


	(Stated in millions)
	Jun. 30 2010		Dec. 31 2009
Property, plant & equipment	$	22,279	$	21,505
Less: Accumulated depreciation		12,622		11,845

	$	9,657	$	9,660

Schedule of Depreciation Expense

Depreciation expense relating to fixed assets was as follows:


	(Stated in millions)
	2010		2009
Second Quarter	$	558	$	537
Six Months	$	1,105	$	1,067

Multiclient Seismic Data (Tables)

6 Months Ended

Jun. 30, 2010

Multiclient Seismic Data Table

The change in the carrying amount of multiclient seismic data for the six months ended June 30, 2010 was as follows:


	(Stated in millions)
Balance at December 31, 2009	$	288
Capitalized in period		172
Charged to cost of revenue		(91	)

Balance at June 30, 2010	$	369

Goodwill (Tables)

6 Months Ended

Jun. 30, 2010

Schedule of Goodwill

The changes in the carrying amount of goodwill by business segment for the six months ended June 30, 2010 were as follows:


			(Stated in millions)
	Oilfield Services		Western Geco		Total
Balance at December 31, 2009	$	4,290	$	1,015	$	5,305

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2010

Schedule of Intangible Assets by Major Class

Intangible assets principally comprise software, technology and customer relationships. The gross book value and accumulated amortization of intangible assets were as follows:


							(Stated in millions)
	Jun. 30, 2010						Dec. 31, 2009
	Gross Book Value		Accumulated Amortization		Net Book Value		Gross Book Value		Accumulated Amortization		Net Book Value
Software	$	332	$	261	$	71	$	339	$	262	$	77
Technology		704		178		526		527		163		364
Customer Relationships		746		93		653		355		80		275
Other		169		59		110		121		51		70

	$	1,951	$	591	$	1,360	$	1,342	$	556	$	786

Schedule of Amortization Expense

Amortization expense charged to income was as follows:

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2010

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of outstanding derivative instruments is summarized as follows:


(Stated in millions)
	Fair Value of Derivatives				Classification
	Jun. 30 2010		Dec. 31 2009
Derivative assets
Derivative designated as hedges:
Foreign exchange contracts	$	2	$	14	Other current assets
Foreign exchange contracts		—		216	Other Assets
Interest rate swaps		22		—	Other Assets

	$	24	$	230

Derivative not designated as hedges:
Commodity contracts	$	1	$	1	Other current assets
Foreign exchange contracts		5		11	Other current assets
Foreign exchange contracts		12		28	Other Assets

	$	18	$	40

	$	42	$	270

Derivative Liabilities
Derivative designated as hedges:
Foreign exchange contracts	$	33	$	15	Accounts payable and accrued liabilities
Foreign exchange contracts		199		51	Other Liabilities

	$	232	$	66

Derivative not designated as hedges:
Commodity contracts	$	1	$	3	Accounts payable and accrued liabilities
Foreign exchange contracts		3		—	Accounts payable and accrued liabilities
Foreign exchange contracts		—		25	Other Liabilities

	$	4	$	28

	$	236	$	94

The fair value of all outstanding derivatives is determined using a model with inputs that are observable in the market or can be derived from or corroborated by observable data.

The effect on the Consolidated Statement of Income of derivative instruments designated as fair value hedges and those not designated as hedges was as follows:


(Stated in millions)
	Gain/(Loss) Recognized in Income
	Second Quarter					Six Months
	2010			2009		2010			2009			Classification
Derivatives designated as fair value hedges:
Foreign exchange contracts	$	—		$	61	$	(13	)	$	39		Cost of revenue
Interest rate swaps		4			—		9			—		Interest expense

	$	4		$	61	$	(4	)	$	39

Derivatives not designated as hedges:
Foreign exchange contracts	$	(38	)	$	1	$	(45	)	$	(22	)	Cost of revenue
Commodity contracts		(1	)		1		(2	)		—		Cost of revenue

	$	(39	)	$	2	$	(47	)	$	(22	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect on the Consolidated Statement of Income of derivative instruments designated as fair value hedges and those not designated as hedges was as follows:


(Stated in millions)
	Gain/(Loss) Recognized in Income
	Second Quarter					Six Months
	2010			2009		2010			2009			Classification
Derivatives designated as fair value hedges:
Foreign exchange contracts	$	—		$	61	$	(13	)	$	39		Cost of revenue
Interest rate swaps		4			—		9			—		Interest expense

	$	4		$	61	$	(4	)	$	39

Derivatives not designated as hedges:
Foreign exchange contracts	$	(38	)	$	1	$	(45	)	$	(22	)	Cost of revenue
Commodity contracts		(1	)		1		(2	)		—		Cost of revenue

	$	(39	)	$	2	$	(47	)	$	(22	)

Schedule of Derivative Instruments, Effect on Income and Other Comprehensive Income

The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) was as follows:


(Stated in millions)
	Gain (Loss) Reclassified from Accumulated OCI into Income												Classification
	Second Quarter						Six Months
	2010			2009			2010			2009
Foreign exchange contracts	$	(200	)	$	91		$	(335	)	$	27		Cost of revenue
Foreign exchange contracts		(5	)		(7	)		(6	)		(14	)	Research & engineering

	$	(205	)	$	84		$	(341	)	$	13


(Stated in millions)
	Gain (Loss) Recognized in OCI
	Second Quarter						Six Months
	2010			2009			2010			2009
Foreign exchange contracts	$	(264	)	$	227		$	(422	)	$	168

Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2010

Long-term Debt

A summary of Long-Term Debt follows:


	(Stated in millions)
	Jun. 30, 2010		Dec. 31, 2009
5.25% Guaranteed Notes due 2013	$	614	$	727
6.50% Notes due 2012		649		649
5.875% Guaranteed Bonds due 2011		311		362
4.50% Guaranteed Bonds due 2014		1,227		1,449
3.00% Guaranteed Notes due 2013		450		449
Commercial paper borrowings		234		358
Other variable rate debt		222		360

		3,707		4,354
Fair value adjustment—hedging		22		1

	$	3,729	$	4,355

Income Tax (Tables)

6 Months Ended

Jun. 30, 2010

Income Tax Disclosure Table

Income from Continuing Operations before taxes which was subject to US and non-US income taxes was as follows:


						(Stated in millions)
	Second Quarter					Six Months
	2010		2009			2010		2009
United States	$	83	$	(64	)	$	144	$	40
Outside United States		911		831			1,738		1,920

	$	994	$	767		$	1,882	$	1,960

Components of net deferred tax assets

The components of net deferred tax assets were as follows:


	(Stated in millions)
	Jun. 30 2010			Dec. 31 2009
Postretirement benefits, net	$	392		$	447
Multiclient seismic data		100			104
Intangible assets		(246	)		(122	)
Other, net		101			101

	$	347		$	530

Components of Consolidated Income Taxes

The components of consolidated Taxes on income were as follows:


	(Stated in millions)
	Second Quarter						Six Months
	2010			2009			2010			2009
Current:
United States - Federal	$	26		$	(20	)	$	48		$	(55	)
United States - State		3			(1	)		6			(2	)
Outside United States		150			169			306			380

	$	179		$	148		$	360		$	323

Deferred:
United States - Federal	$	(3	)	$	(2	)	$	39		$	71
United States - State		—			—			2			4
Outside United States		10			6			—			7
Valuation allowance		(9	)		—			(10	)		(1	)

	$	(2	)	$	4		$	31		$	81

Consolidated taxes on income	$	177		$	152		$	391		$	404

Reconciliation of the US Statutory Federal Tax Rate

A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows:


	Second Quarter				Six Months
	2010		2009		2010		2009
US federal statutory rate	35	%	35	%	35	%	35	%
Non-US income taxed at different rates	(14	)	(16	)	(14	)	(15	)
Effect of equity method investment	(1	)	(1	)	(1	)	—
Charges (See Note 3)	—		2		2		2
Other	(2	)	—		(1	)	(1	)

Effective income tax rate	18	%	20	%	21	%	21	%

Segment Information (Tables)

6 Months Ended

Jun. 30, 2010

Schedule of Segment Reporting Information, by Segment

Schlumberger operates two business segments: Oilfield Services and WesternGeco.


						(Stated in millions)
	Second Quarter 2010					Second Quarter 2009
	Revenue		Income before taxes			Revenue		Income before taxes
Oilfield Services
North America	$	1,115	$	116		$	819	$	8
Latin America		1,144		205			995		176
Europe/CIS/Africa		1,740		319			1,782		432
Middle East & Asia		1,371		427			1,312		421
Other		66		7			48		(15	)

		5,436		1,074			4,956		1,022
WesternGeco		476		47			559		97

Corporate & Other		25		(90	)		13		(77	)
Interest Income ⁽¹⁾		—		11			—		13
Interest Expense ⁽²⁾		—		(48	)		—		(50	)
Charges		—		—			—		(238	)

	$	5,937	$	994		$	5,528	$	767

1.	Excludes interest income included in the segment results ($4 million in 2010; $4 million in 2009).

2.	Excludes interest expense included in the segment results ($5 million in 2010; $11 million in 2009).


						(Stated in millions)
	Six Months 2010					Six Months 2009
	Revenue		Income before taxes			Revenue		Income before taxes
Oilfield Services
North America	$	2,148	$	198		$	2,011	$	171
Latin America		2,200		390			2,024		378
Europe/CIS/Africa		3,365		613			3,585		899
Middle East & Asia		2,693		837			2,687		876
Other		127		4			88		(46	)

		10,533		2,042			10,395		2,278
WesternGeco		948		114			1,110		151

Corporate & Other		53		(171	)		23		(166	)
Interest Income ⁽¹⁾		—		24			—		27
Interest Expense ⁽²⁾		—		(92	)		—		(92	)
Charges		—		(35	)		—		(238	)

	$	11,534	$	1,882		$	11,528	$	1,960

1.	Excludes interest income included in the segment results ($7 million in 2010; $9 million in 2009).

2.	Excludes interest expense included in the segment results ($6 million in 2010; $24 million in 2009).

Pension and Other Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2010

Other Postretirement Benefits Disclosure

Pension Disclosure

Net pension cost for the Schlumberger pension plans included the following components:


													(Stated in millions)
	Second Quarter												Six Months
	2010						2009						2010						2009
	US			Int’l			US			Int’l			US			Int’l			US			Int’l
Service cost—benefits earned during period	$	13		$	10		$	14		$	15		$	28		$	24		$	30		$	29
Interest cost on projected benefit obligation		35			51			38			45			71			103			77			90
Expected return on plan assets		(47	)		(57	)		(45	)		(40	)		(95	)		(115	)		(88	)		(80	)
Amortization of net loss		15			5			9			—			31			10			18			—
Amortization of prior service cost		1			29			1			31			2			57			3			62

		17			38			17			51			37			79			40			101
Curtailment charge		—			—			32			98			—			—			32			98

	$	17		$	38		$	49		$	149		$	37		$	79		$	72		$	199

The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components:


							(Stated in millions)
	Second Quarter						Six Months
	2010			2009			2010			2009
Service cost—benefits earned during period	$	6		$	5		$	11		$	12
Interest cost on accumulated postretirement benefit obligation		14			14			29			26
Expected return on plan assets		(2	)		—			(3	)		(1	)
Amortization of prior service cost		(5	)		(7	)		(10	)		(14	)
Amortization of net loss		2			2			6			5

	$	15		$	14		$	33		$	28
Curtailment charge		—			6			—			6

	$	15		$	20		$	33		$	34

Merger with Smith International, Inc. - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009	Dec. 31, 2009	Mar. 31, 2010	Feb. 21, 2010
Statement [Line Items]
Revenue	$ 5,937	$ 5,528	$ 11,534	$ 11,528
Smith International Incorporate
Statement [Line Items]
Under merger agreement, shares of Schlumberger in exchange for each Smith share							0.6966
Under merger agreement, common stock shares issuable							176,000,000
Purchase price	$ 9,800		$ 9,800
Net debt assumed						$ 1,300
Revenue					$ 8,200

Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2010	Jun. 30, 2009
Statement [Line Items]
Charges, pretax	$ 35	$ 238
Charges, net of tax	75	207
Business Combination
Statement [Line Items]
Charges, pretax	35
Charges, net of tax	35
Medicare Part D Subsidy
Statement [Line Items]
Charges, net of tax	$ 40
Employee Severance
Statement [Line Items]
Charges, pretax		102
Charges, net of tax		85
Postretirement benefits curtailment
Statement [Line Items]
Charges, pretax		136
Charges, net of tax		$ 122

Summary of Charges (Detail) - USD ($) $ in Millions	3 Months Ended
Summary of Charges (Detail) - USD ($) $ in Millions	Mar. 31, 2010	Jun. 30, 2009
Statement [Line Items]
Charges, pretax	$ 35	$ 238
Charges, tax	40	(31)
Charges, net of tax	75	207
Business Combination
Statement [Line Items]
Charges, pretax	35
Charges, net of tax	35
Medicare Part D Subsidy
Statement [Line Items]
Charges, tax	40
Charges, net of tax	$ 40
Employee Severance
Statement [Line Items]
Charges, pretax		102
Charges, tax		(17)
Charges, net of tax		85
Postretirement benefits curtailment
Statement [Line Items]
Charges, pretax		136
Charges, tax		(14)
Charges, net of tax		$ 122

Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Schlumberger amounts attributable to:
Basic	$ 818	$ 613	$ 1,490	$ 1,552
Assumed conversion of debentures	1	2	3	4
Assumed exercise of stock options
Unvested restricted stock
Diluted	$ 819	$ 615	$ 1,493	$ 1,556
Average shares outstanding:
Basic	1,192	1,197	1,194	1,197
Assumed conversion of debentures	6	8	6	8
Assumed exercise of stock options	8	8	9	6
Unvested restricted stock	2	1	2	1
Assuming dilution	1,208	1,214	1,211	1,212
Earnings per Share
Basic	$ 0.69	$ 0.51	$ 1.25	$ 1.30
Diluted	$ 0.68	$ 0.51	$ 1.23	$ 1.28

Common Stock Which Was Not Included in the Computation of Diluted Earnings Per Share (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
Number of outstanding options to purchase shares of Schlumberger common stock which were not included in the computation of diluted earnings per share	14	17	13	17

Acquisitions - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2010 USD ($)	Jun. 30, 2009 USD ($)	Jun. 30, 2010 USD ($)	Jun. 30, 2009 USD ($)	Dec. 31, 2009 USD ($)	Apr. 23, 2010 USD ($)
Statement [Line Items]
Revenue	$ 5,937	$ 5,528	$ 11,534	$ 11,528
Acquisitions and minority interest investments, net of cash acquired			$ 145
Geoservices
Statement [Line Items]
Purchase price						$ 915
Intangible assets amortized over a weighted average period						19
Revenue					$ 500

Purchase Price Allocated to Net Assets Acquired Upon Estimated Fair Values (Detail) - Geoservices $ in Millions	Apr. 23, 2010 USD ($)
Statement [Line Items]
Cash	$ 26
Other assets	183
Fixed assets	91
Goodwill	466
Intangible assets	546
Long-term debt	(144)
Deferred tax liabilities	(98)
Other liabilities	(155)
Purchase price	$ 915

Summary of Inventory (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Raw materials & field materials	$ 1,665	$ 1,646
Work in process	84	74
Finished goods	116	146
Inventories	$ 1,865	$ 1,866

Summary of Fixed Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Property, plant & equipment	$ 22,279	$ 21,505
Less: Accumulated depreciation	12,622	11,845
Fixed Assets less accumulated depreciation	$ 9,657	$ 9,660

Depreciation Expense Relating to Fixed Assets (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
Depreciation expense relating to fixed assets	$ 558	$ 537	$ 1,105	$ 1,067

Change in the Carrying Amount of Multiclient Seismic Data (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2010 USD ($)
Statement [Line Items]
Beginning Balance	$ 288
Capitalized in period	172
Charged to cost of revenue	(91)
Ending Balance	$ 369

Changes in the Carrying Amount of Goodwill by Business Segment (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2010 USD ($)
Statement [Line Items]
Beginning Balance	$ 5,305
Additions	574
Impact of change in exchange rates	(25)
Ending Balance	5,854
Oilfield Services
Statement [Line Items]
Beginning Balance	4,290
Additions	557
Impact of change in exchange rates	(25)
Ending Balance	4,822
WesternGeco
Statement [Line Items]
Beginning Balance	1,015
Additions	17
Ending Balance	$ 1,032

Gross Book Value and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Gross Book Value	$ 1,951	$ 1,342
Accumulated Amortization	591	556
Net Book Value	1,360	786
Software
Statement [Line Items]
Gross Book Value	332	339
Accumulated Amortization	261	262
Net Book Value	71	77
Developed Technology Rights
Statement [Line Items]
Gross Book Value	704	527
Accumulated Amortization	178	163
Net Book Value	526	364
Customer Relationships
Statement [Line Items]
Gross Book Value	746	355
Accumulated Amortization	93	80
Net Book Value	653	275
Other Intangible Assets
Statement [Line Items]
Gross Book Value	169	121
Accumulated Amortization	59	51
Net Book Value	$ 110	$ 70

Amortization Expense Charged to Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
Amortization expense charged to income	$ 35	$ 28	$ 63	$ 57

Intangible Assets - Additional Information (Detail) pure in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2010 USD ($)
Statement [Line Items]
Weighted average amortization period for all intangible assets (years)	14
Estimated amortization charged to income, remainder of 2010	$ 69
Estimated amortization charged to income, 2011	134
Estimated amortization charged to income, 2012	122
Estimated amortization charged to income, 2013	107
Estimated amortization charged to income, 2014	97
Estimated amortization charged to income, 2015	$ 89

Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Sep. 30, 2009
Statement [Line Items]
Recognized a cumulative net gain in Equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges	$ 41
Contracts outstanding in various foreign currencies (US dollar equivalent)	3,800
Fixed rate debt aggregate, after taking into account the effects of the interest rate swaps	2,400
Variable rate debt aggregate, after taking into account the effects of the interest rate swaps	2,100
Short-term investments and Fixed income investments, held to maturity	$ 3,500
6.50% Notes due 2012
Statement [Line Items]
Notional amount of interest rate swap		$ 600
Notes relating to interest rate swap		$ 650
6.50% Notes due 2012 \| Fixed Rate Debt
Statement [Line Items]
Derivative Swap interest rate		6.50%
6.50% Notes due 2012 \| Floating Rate Debt
Statement [Line Items]
Derivative Swap interest rate		4.84%
3.00% Guaranteed Notes due 2013
Statement [Line Items]
Notional amount of interest rate swap		$ 450
Notes relating to interest rate swap		$ 450
3.00% Guaranteed Notes due 2013 \| Fixed Rate Debt
Statement [Line Items]
Derivative Swap interest rate		3.00%
3.00% Guaranteed Notes due 2013 \| Floating Rate Debt
Statement [Line Items]
Derivative Swap interest rate		0.765%

Fair Values of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	$ 24	$ 230
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	18	40
Derivative Asset, Fair Value, Total	42	270
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	232	66
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges	4	28
Derivative Liability, Fair Value, Total	236	94
Foreign Exchange Contract \| Other Current Assets
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	2	14
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	5	11
Foreign Exchange Contract \| Other Assets
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges		216
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	12	28
Foreign Exchange Contract \| Accounts Payable and Accrued Liabilities
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	33	15
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges	3
Foreign Exchange Contract \| Other Liabilities
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	199	51
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges		25
Interest Rate Contract \| Other Assets
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	22
Commodity Contract \| Other Current Assets
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	1	1
Commodity Contract \| Accounts Payable and Accrued Liabilities
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges	$ 1	$ 3

Effect of Derivative Instruments Designated as Fair Value Hedges and Not Designated as Hedges on the Consolidated Statement of Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Fair Value Hedging
Statement [Line Items]
Gain/(loss) recognized in income	$ 4	$ 61	$ (4)	$ 39
Fair Value Hedging \| Foreign Exchange Contract \| Cost of Sales
Statement [Line Items]
Gain/(loss) recognized in income		61	(13)	39
Fair Value Hedging \| Interest Rate Contract \| Interest Expense
Statement [Line Items]
Gain/(loss) recognized in income	4		9
Nondesignated
Statement [Line Items]
Gain/(loss) recognized in income	(39)	2	(47)	(22)
Nondesignated \| Foreign Exchange Contract \| Cost of Sales
Statement [Line Items]
Gain/(loss) recognized in income	(38)	1	(45)	$ (22)
Nondesignated \| Commodity Contract \| Cost of Sales
Statement [Line Items]
Gain/(loss) recognized in income	$ (1)	$ 1	$ (2)

Effect of Derivative Instruments in Cash Flow Hedging Relationships on Income and Other Comprehensive Income (Detail) - Foreign Exchange Contract - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
Gain (loss) reclassified from accumulated OCI into income	$ (205)	$ 84	$ (341)	$ 13
Gain/(loss) recognized in OCI	(264)	227	(422)	168
Cost of Sales
Statement [Line Items]
Gain (loss) reclassified from accumulated OCI into income	(200)	91	(335)	27
Research and Development Expense
Statement [Line Items]
Gain (loss) reclassified from accumulated OCI into income	$ (5)	$ (7)	$ (6)	$ (14)

Summary of Other Long-Term Debt (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Long-term debt, carrying amount	$ 3,707	$ 4,354
Fair value adjustment-hedging	22	1
Other Long-term Debt, Noncurrent, Total	3,729	4,355
5.25% Guaranteed Notes due 2013
Statement [Line Items]
Long-term debt, carrying amount	614	727
6.50% Notes due 2012
Statement [Line Items]
Long-term debt, carrying amount	649	649
5.875% Guaranteed Bonds due 2011
Statement [Line Items]
Long-term debt, carrying amount	311	362
4.50% Guaranteed Bonds due 2014
Statement [Line Items]
Long-term debt, carrying amount	1,227	1,449
3.00% Guaranteed Notes due 2013
Statement [Line Items]
Long-term debt, carrying amount	450	449
Commercial Paper
Statement [Line Items]
Long-term debt, carrying amount	234	358
Debt, Other
Statement [Line Items]
Long-term debt, carrying amount	$ 222	$ 360

Long-term Debt - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Long-term debt, fair value	$ 4,000	$ 4,600
2.125% Series B Convertible Debentures due June 1, 2023, outstanding		321
Debentures converted into common shares	$ 320
Shares of common stock converted from debentures	7,997,300
Debentures redeemed for cash	$ 1
2.125% Series B Convertible Debentures due June 1, 2023
Statement [Line Items]
Long-term debt, fair value		$ 527

Income from Continuing Operations Before Taxes Which Were Subject to US and Non-US Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
United States	$ 83	$ (64)	$ 144	$ 40
Outside United States	911	831	1,738	1,920
Income (Loss) from Continuing Operations before Income Taxes and Minority Interest, Total	$ 994	$ 767	$ 1,882	$ 1,960

Income Tax - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2010	Mar. 31, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009	Dec. 31, 2009
Statement [Line Items]
Recorded pretax charges		$ 35	$ 238
Deferred tax assets, valuation allowances relating to net operating losses in certain countries	$ 220			$ 220		$ 251
Deferred tax assets, valuation allowances relating to a capital loss carryforward, expires in 2010	16			16		17
Deferred tax assets, foreign tax credit carryforward, expires in 2012	$ 21			$ 21		$ 30
US statutory federal tax rate	35.00%		35.00%	35.00%	35.00%
Outside United States
Statement [Line Items]
Recorded pretax charges	$ 35		$ 165
United States
Statement [Line Items]
Recorded pretax charges			$ 73

Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Postretirement benefits, net	$ 392	$ 447
Multiclient seismic data	100	104
Intangible assets	(246)	(122)
Other, net	101	101
Deferred Tax Assets, Net, Total	$ 347	$ 530

Components of Consolidated Taxes on Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Current:
United States - Federal	$ 26	$ (20)	$ 48	$ (55)
United States - State	3	(1)	6	(2)
Outside United States	150	169	306	380
Current Income Tax Expense (Benefit), Total	179	148	360	323
Deferred:
United States - Federal	(3)	(2)	39	71
United States - State			2	4
Outside United States	10	6		7
Valuation allowance	(9)		(10)	(1)
Deferred income taxes	(2)	4	31	81
Consolidated taxes on income	$ 177	$ 152	$ 391	$ 404

Reconciliation of the US Statutory Federal Tax Rate to the Consolidated Effective Income Tax Rate (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Statement [Line Items]
US federal statutory rate	35.00%	35.00%	35.00%	35.00%
Non-US income taxed at different rates	(14.00%)	(16.00%)	(14.00%)	(15.00%)
Effect of equity method investment	(1.00%)	(1.00%)	(1.00%)
Charges (See Note 3)		2.00%	2.00%	2.00%
Other	(2.00%)		(1.00%)	(1.00%)
Effective income tax rate	18.00%	20.00%	21.00%	21.00%

Schlumberger Operates Two Business Segments - Oilfield Services and WesternGeco (Detail) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2010

Jun. 30, 2009

Jun. 30, 2010

Jun. 30, 2009

$ 5,937

$ 5,528

$ 11,534

$ 11,528

994

767

1,882

1,960

Oilfield Services

5,436

4,956

10,533

10,395

Oilfield Services | North America

1,074

1,022

2,042

2,278

1,115

819

2,148

2,011

Oilfield Services | Latin America

116

198

171

1,144

995

2,200

2,024

Oilfield Services | Europe, CIS, and Africa

205

176

390

378

1,740

1,782

3,365

3,585

Oilfield Services | Middle East and Asia

319

432

613

899

1,371

1,312

2,693

2,687

Oilfield Services | Other Regions

427

421

837

876

127

(15)

(46)

WesternGeco

476

559

948

1,110

114

151

Corporate and Other

(90)

(77)

(171)

(166)

Interest Income

^[1]

^[2]

Interest Expense

$ (48)

^[3]

(50)

^[3]

(92)

^[4]

(92)

^[4]

Charges