View Filing Data

Interest and other income, net

$ 27,447

$ 22,702

$ 27,163

214

273

412

Gain on investment in M-I SWACO

1,270

Expenses

Cost of revenue

21,499

17,245

18,957

Research & engineering

919

802

819

General & administrative

650

535

584

Merger & integration

169

Restructuring & other

331

238

116

Interest

207

221

247

Income from Continuing Operations before taxes

5,156

3,934

6,852

Taxes on income

890

770

1,430

4,266

3,164

5,422

(22)

Net income attributable to noncontrolling interests

4,266

3,142

5,460

(8)

(25)

Net Income attributable to Schlumberger

4,267

3,134

5,435

Schlumberger amounts attributable to:

4,267

3,156

5,397

(22)

Basic earnings per share of Schlumberger:

$ 4,267

$ 3,134

$ 5,435

$ 3.41

$ 2.63

$ 4.51

(0.02)

0.03

Diluted earnings per share of Schlumberger:

^[1]

3.41

2.62

4.54

3.38

2.61

4.42

(0.02)

0.03

Cash flows from operating activities:

$ 3.38

$ 2.59

$ 4.45

Average shares outstanding

Basic

1,250

1,198

1,196

Assuming dilution

1,263

1,214

1,224

[1]	Amounts may not add due to rounding

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Current Assets
Cash	$ 1,764	$ 617
Short-term investments	3,226	3,999
Receivables less allowance for doubtful accounts (2010-$185; 2009-$160)	8,278	6,088
Inventories	3,804	1,866
Deferred taxes	51	154
Other current assets	975	926
Assets, Current, Total	18,098	13,650
Fixed Income Investments, held to maturity	484	738
Investments in Affiliated Companies	1,071	2,306
Fixed Assets less accumulated depreciation	12,071	9,660
Multiclient Seismic Data	394	288
Goodwill	13,952	5,305
Intangible Assets	5,162	786
Deferred Taxes		376
Other Assets	535	356
Assets, Total	51,767	33,465
Current Liabilities
Accounts payable and accrued liabilities	6,488	5,003
Estimated liability for taxes on income	1,493	878
Long-term debt-current portion	2,214	444
Short-term borrowings	381	360
Dividend payable	289	253
Convertible debentures		321
Liabilities, Current, Total	10,865	7,259
Long-term Debt	5,517	4,355
Postretirement Benefits	1,262	1,660
Deferred Taxes	1,636
Other Liabilities	1,043	962
Liabilities, Total	20,323	14,236
Equity
Common stock	11,920	4,777
Treasury stock	(3,136)	(5,002)
Retained earnings	25,210	22,019
Accumulated other comprehensive loss	(2,768)	(2,674)
Schlumberger stockholders' equity	31,226	19,120
Noncontrolling interests	218	109
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total	31,444	19,229
Liabilities and Stockholders' Equity, Total	$ 51,767	$ 33,465

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Adjustments to reconcile net income to net cash provided by operating activities:

$ 4,266

$ 3,142

$ 5,460

Gain on investment in M-I SWACO

2,759

^[1]

2,476

^[1]

2,269

(1,270)

Earnings of companies carried at equity, less dividends received

(85)

(103)

(235)

Deferred income taxes

(109)

373

(6)

Stock-based compensation expense

198

186

172

Other non-cash items

327

162

128

Pension and other postretirement benefits expense

299

306

127

Pension and other postretirement benefits curtailment charge

136

Pension and other postretirement benefits funding

(868)

(1,149)

(318)

Change in operating assets and liabilities:

(Increase) decrease in receivables

(289)

^[2]

155

^[2]

(944)

(Increase) decrease in inventories

(67)

^[2]

(299)

Decrease (increase) in other current assets

136

^[2]

(198)

(Decrease) increase in accounts payable and accrued liabilities

(103)

^[2]

(293)

^[2]

683

Increase (decrease) in estimated liability for taxes on income

480

^[2]

(361)

^[2]

(94)

(Decrease) increase in other liabilities

(89)

^[2]

Other--net

(91)

^[2]

165

^[2]

NET CASH PROVIDED BY OPERATING ACTIVITIES

5,494

5,311

6,899

Cash flows from investing activities:

Multiclient seismic data capitalized

(2,914)

(2,395)

(3,723)

(326)

(230)

(345)

Cash acquired in merger with Smith International, Inc.

399

Acquisition of Eastern Echo, net of cash acquired

889

Other business acquisitions and investments, net of cash acquired

(212)

(514)

(345)

Sale (purchase) of investments, net

1,023

(1,159)

(604)

Other

(19)

228

(132)

NET CASH USED IN INVESTING ACTIVITIES

(2,938)

(4,070)

(5,149)

Cash flows from financing activities:

Dividends paid

(1,040)

(1,006)

(964)

Proceeds from employee stock purchase plan

179

177

Proceeds from exercise of stock options

222

110

174

Tax benefits on stock options

137

Stock repurchase program

(1,717)

(500)

(1,819)

Proceeds from issuance of long-term debt

2,815

1,973

1,281

Repayment of long-term debt

(1,814)

(1,754)

(601)

Net (decrease) increase in short-term borrowings

(68)

(111)

(210)

NET CASH USED IN FINANCING ACTIVITIES

(1,409)

(1,188)

(1,825)

Cash flow from discontinued operations - operating activities

(45)

Net increase (decrease) in cash before translation effect

1,147

(12)

Translation effect on cash

(2)

Cash, beginning of period

617

609

623

Cash, end of period

$ 1,764

$ 617

$ 609

[1]	Includes multiclient seismic data costs.
[2]	Net of the effect of business acquisitions.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning Balance	$ 16,934	$ 19,229	$ 16,934	$ 14,938
Comprehensive income:
Net Income		4,266	3,142	5,460
Currency translation adjustments		(26)	17	(82)
Changes in fair value of derivatives		5	143	(135)
Total comprehensive income	3,731	4,172	3,370
Shares sold to optionees less shares exchanged	174	222	110
Shares granted to Directors	1	2	1	1
Shares issued under employee stock purchase plan	172	179	166
Stock repurchase program		(1,717)	(500)	(1,819)
Stock-based compensation cost	$ 172	198	186
Shares issued on conversion of debentures		320		447
Acquisition of Smith International, Inc.		9,939
Acquisition of noncontrolling interests		3
Other		(41)	(36)	(13)
Dividends declared ($0.84 per share)		(1,076)	(1,006)	(1,006)
Tax benefits on stock options		14	4	137
Ending Balance		$ 31,444	$ 19,229	$ 16,934
Beginning Balance, in shares	1,194	1,195	1,194	1,196
Acquisition of Smith International, Inc., in shares		176
Shares sold to optionees less shares exchanged, in shares		6	4	5
Vesting of restricted stock, in shares			1
Shares issued under employee stock purchase plan, in shares		3	4	2
Stock repurchase program, in shares		(27)	(8)	(21)
Shares issued on conversion of debebtures		8		12
Ending Balance, in shares		1,361	1,195	1,194
Common Stock Issued
Statement [Line Items]
Beginning Balance	$ 4,668	$ 4,777	$ 4,668	$ 4,136
Comprehensive income:
Shares sold to optionees less shares exchanged		(8)	(22)	20
Shares granted to Directors		1
Vesting of restricted stock		(11)	(20)
Shares issued under employee stock purchase plan		49	25	115
Stock-based compensation cost		198	186	172
Shares issued on conversion of debentures		17		86
Acquisition of Smith International, Inc.		6,880
Acquisition of noncontrolling interests		3
Other			(64)	1
Tax benefits on stock options		14	4	137
Ending Balance		$ 11,920	$ 4,777	$ 4,668
Beginning Balance, in shares	1,334	1,334	1,334	1,334
Acquisition of Smith International, Inc., in shares		100
Ending Balance, in shares		1,434	1,334	1,334
Common Stock In Treasury
Statement [Line Items]
Beginning Balance	$ (4,796)	$ (5,002)	$ (4,796)	$ (3,549)
Comprehensive income:
Shares sold to optionees less shares exchanged		260	132	154
Shares granted to Directors		1	1
Vesting of restricted stock		11	20
Shares issued under employee stock purchase plan		130	141	57
Stock repurchase program		(1,717)	(500)
Shares issued on conversion of debentures		303		361
Acquisition of Smith International, Inc.		2,948
Other		(40)
Ending Balance		$ (3,136)	$ (5,002)	$ (4,796)
Beginning Balance, in shares	(140)	(139)	(140)	(138)
Acquisition of Smith International, Inc., in shares		76
Shares sold to optionees less shares exchanged, in shares		6	4	5
Vesting of restricted stock, in shares			1
Shares issued under employee stock purchase plan, in shares		3	4	2
Stock repurchase program, in shares		(27)	(8)	(21)
Shares issued on conversion of debebtures		8		12
Ending Balance, in shares		(73)	(139)	(140)
Retained Earnings
Statement [Line Items]
Beginning Balance	$ 19,891	$ 22,019	$ 19,891	$ 15,462
Comprehensive income:
Net Income		4,267	3,134	5,435
Dividends declared ($0.84 per share)		(1,076)	(1,006)	(1,006)
Ending Balance		25,210	22,019	19,891
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance	(2,901)	(2,674)	(2,901)	(1,173)
Comprehensive income:
Currency translation adjustments		(26)	17	(82)
Changes in fair value of derivatives		5	143	(135)
Deferred employee benefits liabilities		(73)	67	(1,511)
Ending Balance		(2,768)	(2,674)	(2,901)
Noncontrolling Interests
Statement [Line Items]
Beginning Balance	72	109	72	62
Comprehensive income:
Net Income	$ 25	(1)	8
Currency translation adjustments			1	(1)
Acquisition of Smith International, Inc.		111
Other		(1)	28	(14)
Ending Balance		$ 218	$ 109	$ 72

Summary of Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies


2.	Summary of Accounting Policies

The Consolidated Financial Statements of Schlumberger have been prepared in accordance with accounting principles generally accepted in the United States of America.

Principles of Consolidation

The accompanying Consolidated Financial Statements include the accounts of Schlumberger, its wholly-owned subsidiaries, and subsidiaries over which it exercises a controlling financial interest. All significant intercompany transactions and balances have been eliminated. Investments in entities in which Schlumberger does not have a controlling financial interest, but over which it has significant influence are accounted for using the equity method. Schlumberger’s share of the after-tax earnings of equity method investees is included in Interest and other income, net. Investments in which Schlumberger does not have the ability to exercise significant influence are accounted for using the cost method. Both equity and cost method investments are classified in Investments in Affiliated Companies.

Reclassifications

Certain prior year items have been reclassified to conform to the current year presentation.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, Schlumberger evaluates its estimates, including those related to collectibility of accounts receivable; valuation of inventories and investments; recoverability of goodwill, intangible assets and investments in affiliates; income taxes; multiclient seismic data; contingencies and actuarial assumptions for employee benefit plans. Schlumberger bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Revenue Recognition

Schlumberger recognizes revenue based upon purchase orders, contracts or other persuasive evidence of an arrangement with the customer that include fixed or determinable prices provided that collectibility is reasonably assured. Revenue is recognized for services when they are rendered. Revenue is recognized for products upon delivery, when the customer assumes the risks and rewards of ownership. Certain products may be provided on a consigned basis in which case revenue is recognized when the products are consumed provided that all other revenue recognition criteria have been met.

Revenue from seismic contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers with access to such data.

Revenue is occasionally generated from contractual arrangements that include multiple deliverables. Revenue from these arrangements is recognized as each item is delivered based on their relative fair value and when the delivered items have stand-alone value to the customer.

Revenue derived from the sale of licenses of Schlumberger software may include installation, maintenance, consulting and training services. If services are not essential to the functionality of the software, the revenue for each element of the contract is recognized separately based on its respective vendor specific objective evidence of fair value when all of the following conditions are met: a signed contract is obtained, delivery has occurred, the fee is fixed or determinable and collectibility is probable.

Translation of Non-United States Currencies

The functional currency of Schlumberger is primarily the US dollar. Assets and liabilities recorded in functional currencies other than US dollars are translated at period end exchange rates. The resulting adjustments are charged or credited directly to the Equity section of the Consolidated Balance Sheet. Revenue and expenses are translated at the weighted-average exchange rates for the period. Realized and unrealized transaction gains and losses are included in income in the period in which they occur. Transaction losses of $27 million net of hedging activities, were recognized in 2010. In 2009 and 2008, transaction gains net of hedging activities of $73 million and $8 million, respectively, were recognized.

Investments

The Consolidated Balance Sheet reflects the Schlumberger investment portfolio separated between current and long term, based on maturity. Both Short-term investments and Fixed Income Investments, held to maturity are comprised primarily of money market funds, eurodollar time deposits, certificates of deposit, commercial paper, euro notes and Eurobonds, and are substantially denominated in US dollars. Under normal circumstances it is the intent of Schlumberger to hold the investments until maturity, with the exception of investments that are considered trading (December 31, 2010 – $189 million; December 31, 2009 – $184 million). Short-term investments that are designated as trading are stated at fair value, which is estimated using quoted market prices for those or similar investments. All other investments are stated at cost plus accrued interest, which approximates market. The unrealized gains/losses on investments designated as trading were not significant at both December 31, 2010 and 2009.

For purposes of the Consolidated Statement of Cash Flows, Schlumberger does not consider short-term investments to be cash equivalents as a significant portion have original maturities in excess of three months.

Fixed Income Investments, held to maturity at December 31, 2010 of $484 million mature as follows: $289 million in 2012, $80 million in 2013 and $115 million in 2014.

Inventories

Inventories are stated at average cost or at market, whichever is lower. Costs included in Inventories consist of materials, direct labor and manufacturing overhead.

Fixed Assets and Depreciation

Fixed assets are stated at cost less accumulated depreciation, which is provided for by charges to income over the estimated useful lives of the assets using the straight-line method. Fixed assets include the manufacturing cost of oilfield technical equipment manufactured or assembled by subsidiaries of Schlumberger. Expenditures for replacements and improvements are capitalized. Maintenance and repairs are charged to operating expenses as incurred. Upon sale or other disposition, the applicable amounts of asset cost and accumulated depreciation are removed from the balance sheet and the net amount, less proceeds from disposal, is charged or credited to income.

Multiclient Seismic Data

The multiclient library consists of completed and in-process seismic surveys that are licensed on a nonexclusive basis. Multiclient surveys are primarily generated utilizing Schlumberger resources. Schlumberger capitalizes costs directly incurred in acquiring and processing the multiclient seismic data. Such costs are charged to Cost of revenue based on the percentage of the total costs to the estimated total revenue that Schlumberger expects to receive from the sales of such data. However, under no circumstance will an individual survey carry a net book value greater than a 4- year straight-line amortized value.

The carrying value of the multiclient library is reviewed for impairment annually as well as when an event or change in circumstance indicating impairment may have occurred. Adjustments to the carrying value are recorded when it is determined that estimated future cash flows, which involves significant judgment on the part of Schlumberger, would not be sufficient to recover the carrying value of the surveys. Significant adverse changes in Schlumberger’s estimated future cash flows could result in impairment charges in a future period.

Goodwill, Other Intangibles and Long-lived Assets

Schlumberger records the excess of purchase price over the fair value of the tangible and identifiable intangible assets acquired as goodwill. Goodwill is tested for impairment annually as well as when an event or change in circumstance indicates an impairment may have occurred. Goodwill is tested for impairment by comparing the fair value of Schlumberger’s individual reporting units to their carrying amount to determine if there is a potential goodwill impairment. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill of the reporting unit is less than its carrying value.

Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involve significant estimates on the part of management. If there is a material change in economic conditions or other circumstances influencing the estimate of future cash flows or fair value, Schlumberger could be required to recognize impairment charges in the future.

Intangible assets consist primarily of customer relationships, technology/technical know-how and tradenames acquired in business combinations. Customer relationships are generally amortized over periods ranging from 7 to 28 years, acquired technology/technical know-how are generally amortized over periods ranging from 5 to 18 years and tradenames are generally amortized over periods ranging from 5 years to 30 years.

Taxes on Income

Schlumberger computes taxes on income in accordance with the tax rules and regulations of the many taxing authorities where the income is earned. The income tax rates imposed by these taxing authorities vary substantially. Taxable income may differ from pretax income for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, an appropriate provision for deferred income taxes is made. Any effect of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. When it is more likely than not that a portion or all of the deferred tax asset will not be realized in the future, Schlumberger provides a corresponding valuation allowance against deferred tax assets.

Schlumberger’s tax filings are subject to regular audit by the tax authorities in most of the jurisdictions in which it conducts business. These audits may result in assessments for additional taxes which are resolved with the authorities or, potentially, through the courts. Schlumberger recognizes the impact of a tax position in its financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Tax liabilities are recorded based on estimates of additional taxes which will be due upon the conclusion of these audits. Estimates of these tax liabilities are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, Schlumberger will record additional tax expense or tax benefit in the year in which such resolution occurs.

Schlumberger generally does not provide income taxes relating to undistributed earnings, as the earnings either would not be taxable when remitted or are considered to be indefinitely reinvested.

Concentration of Credit Risk

Schlumberger’s assets that are exposed to concentrations of credit risk consist primarily of cash, short-term investments, fixed income investments held to maturity, receivables from clients and derivative financial instruments. Schlumberger places its cash, short-term investments and fixed income investments held to maturity with financial institutions and corporations, and limits the amount of credit exposure with any one of them. Schlumberger regularly evaluates the creditworthiness of the issuers in which it invests. The receivables from clients are spread over many countries and customers. Schlumberger maintains an allowance for uncollectible accounts receivable based on expected collectibility and performs ongoing credit evaluations of its customers’ financial condition. By using derivative financial instruments to hedge exposure to changes in exchange rates and commodity prices, Schlumberger exposes itself to some credit risk. Schlumberger minimizes this credit risk by entering into transactions with high-quality counterparties, limiting the exposure to each counterparty and monitoring the financial condition of its counterparties.

Research & Engineering

All research and engineering expenditures are expensed as incurred.

Earnings per Share

Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by first adding back to net income the interest expense on any outstanding convertible debentures and then dividing this adjusted net income attributable to Schlumberger by the sum of (i) unvested restricted stock units; and (ii) the weighted average number of common shares outstanding assuming dilution. The weighted average number of common shares outstanding assuming dilution assumes (a) that all stock options which are in the money are exercised at the beginning of the period and that the proceeds are used by Schlumberger to purchase shares at the average market price for the period, and (b) the conversion of any outstanding convertible debentures.

The following is a reconciliation from basic to diluted earnings per share from continuing operations for each of the last three years:


(Stated in million except per share amounts)
	Schlumberger		Weighted		Earnings Per
	Income from		Average		Share from
	Continuing		Shares		Continuing
	Operations		Outstanding		Operations
2010:
Basic	$	4,267		1,250	$	3.41

Assumed conversion of debentures		3		2
Assumed exercise of stock options		–		9
Unvested restricted stock		–		2


Diluted	$	4,270		1,263	$	3.38

2009:
Basic	$	3,156		1,198	$	2.63

Assumed conversion of debentures		8		8
Assumed exercise of stock options		–		7
Unvested restricted stock		–		1


Diluted	$	3,164		1,214	$	2.61

2008:
Basic	$	5,397		1,196	$	4.51

Assumed conversion of debentures		12		13
Assumed exercise of stock options		–		13
Unvested restricted stock		–		2


Diluted	$	5,409		1,224	$	4.42

Employee stock options to purchase approximately 12.5 million, 17.1 million and 5.8 million shares of common stock at December 31, 2010, 2009 and 2008, 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.

Charges and Credits

12 Months Ended

Dec. 31, 2010

Charges and Credits [Abstract]

Charges and Credits


3.	Charges and Credits

Schlumberger recorded the following Charges and Credits in continuing operations during 2010, 2009 and 2008:

2010

Fourth quarter of 2010:


	•	In connection with Schlumberger’s merger with Smith International, Inc. (“Smith”) (see Note 4 – Acquisitions), 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.

	•	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:


	•	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).

	•	Following the recent 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.

	•	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.

	•	In connection with the Schlumberger’s merger with Smith (see Note 4 – Acquisitions), 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.

	•	$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.

	•	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).

	•	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:


	•	Schlumberger incurred $35 million of pretax and after-tax merger-related costs in connection with the Smith and Geoservices transactions (see Note 4 – Acquisitions). These costs primarily consisted of advisory and legal fees.

	•	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)
							Non-
							controlling
	Pretax			Tax			Interests		Net			Income Statement 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
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	)

Approximately $165 million of the $649 million of pretax restructuring and merger-related charges described above represent non-cash charges. The vast majority of the balance of the charges have either been paid or are expected to be paid within the next three months.

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). These workforce reductions were completed by the end of 2009.

	•	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.

The following is a summary of these charges:


(Stated in millions)
					Non-
					controlling
	Pretax		Tax		Interests		Net		Income Statement Classification
Workforce reductions	$	102	$	17	$	–	$	85		Restructuring & other
Postretirement benefits curtailment		136		14		–		122		Restructuring & other


	$	238	$	31	$	–	$	207

2008

Fourth quarter of 2008:


	•	Due to the continuing slowdown in oil and gas exploration and production spending and its effect on activity in the oilfield services sector, Schlumberger took actions to reduce its global workforce. As a result of these actions, Schlumberger recorded a pretax charge of $74 million ($65 million after-tax).


	•	Schlumberger wrote off certain assets, primarily accounts receivable relating to one client with liquidity issues. Accordingly, Schlumberger recorded a pretax charge of $42 million ($28 million after-tax and noncontrolling interest).

The following is a summary of these charges:


(Stated in millions)
					Non-
					controlling
	Pretax		Tax		Interests		Net		Income Statement Classification
Workforce reductions	$	74	$	9	$	–	$	65	Restructuring & other
Provision for doubtful accounts		32		8		6		18	Restructuring & other
Other		10		–		–		10	Restructuring & other


	$	116	$	17	$	6	$	93

Acquisitions

12 Months Ended

Dec. 31, 2010

Acquisitions [Abstract]

Acquisitions


4.	Acquisitions

Merger with Smith International, Inc.

On August 27, 2010, Schlumberger acquired all of the outstanding shares of Smith, a leading supplier of premium products and services to the oil and gas exploration and production industry. The merger brings together the complementary drilling and measurements technologies and expertise of Schlumberger and Smith in order to facilitate the engineering of complete drilling systems which optimize all of the components of the drill string. Such systems will enable Schlumberger’s customers to achieve improved drilling efficiency, better well placement and increased wellbore assurance as they face increasingly more challenging environments. In addition, Schlumberger’s geographic footprint will facilitate the extension of joint offerings on a worldwide basis.

Under the terms of the merger agreement, Smith became a wholly-owned subsidiary of Schlumberger. Each share of Smith common stock issued and outstanding immediately prior to the effective time of the merger was converted into the right to receive 0.6966 shares of Schlumberger common stock, with cash paid in lieu of fractional shares.

At the effective time of the merger, each outstanding option to purchase Smith common stock was converted pursuant to the merger agreement into a stock option to acquire shares of Schlumberger common stock on the same terms and conditions as were in effect immediately prior to the completion of the merger. The number of shares of Schlumberger common stock underlying each converted Smith stock option was determined by multiplying the number of Smith stock options by the 0.6966 exchange ratio, and rounding down to the nearest whole share. The exercise price per share of each converted Smith stock option was determined by dividing the per share exercise price of such stock option by the 0.6966 exchange ratio, and rounded up to the nearest whole cent. Smith stock options, whether or not then vested and exercisable, became fully vested and exercisable and assumed by Schlumberger at the effective date of the merger in accordance with preexisting change-in-control provisions. Smith stock options were converted into 0.6 million of Schlumberger stock options.

At the effective time of the merger, Smith restricted stock units, whether or not then vested, became fully vested (except for grants between the date of the merger agreement and closing, which were not significant and did not automatically vest) and were converted into shares of Schlumberger common stock in connection with the merger, determined by multiplying the number of shares of Smith common stock subject to each award by the 0.6966 exchange ratio, rounded to the nearest whole share (assuming, in the case of performance-based Smith restricted stock unit awards, the deemed attainment of the performance goals under the award at the target level).

Calculation of Consideration Transferred

The following details the fair value of the consideration transferred to effect the merger with Smith.


(Stated in millions, except exchange ratio and per share amounts)
Number of shares of Smith common stock outstanding as of the acquisition date		248
Number of Smith unvested restricted stock units outstanding as of the acquisition date		4


		252
Multiplied by the exchange ratio		0.6966


Equivalent Schlumberger shares of common stock issued		176
Schlumberger closing stock price on August 27, 2010	$	55.76


Common stock equity consideration	$	9,812
Fair value of Schlumberger equivalent stock options issued	$	16


Total fair value of the consideration transferred	$	9,828

Certain amounts reflect rounding adjustments

Preliminary Allocation of Consideration Transferred to Net Assets Acquired

The following amounts represent the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed in the merger. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. These amounts will be finalized as soon as possible, but no later than one year from the acquisition date.


(Stated in millions)
Cash	$	399
Accounts receivable		1,831
Inventory⁽¹⁾		2,013
Fixed assets		2,017
Intangible assets:
Tradenames (weighted-average life of 25 years)		1,560
Technology (weighted-average life of 16 years)		1,170
Customer relationships (weighted average life of 23 years)		1,360
Other assets		429
Accounts payable and accrued liabilities		(1,460	)
Long-term debt⁽²⁾		(2,141	)
Deferred taxes⁽³⁾		(1,936	)
Other liabilities		(528	)


sub-total	$	4,714
Less:
Investment in M-I SWACO⁽⁴⁾		(1,429	)
Noncontrolling interests		(111	)


Total identifiable net assets	$	3,174
Gain on investment in M-I SWACO⁽⁴⁾		(1,238	)
Goodwill⁽⁵⁾		7,892


Total consideration transferred	$	9,828


(1)		Schlumberger recorded an adjustment of approximately $155 million to write-up the acquired inventory to its estimated fair value. Schlumberger’s cost of revenue reflected this increased valuation as this inventory was sold. Accordingly, Schlumberger’s margins were temporarily reduced in the initial periods subsequent to the merger.
(2)		In connection with the merger, Schlumberger assumed all of the debt obligations of Smith including its long-term fixed rate notes consisting of the following: $220 million 6.75% Senior Notes due 2011, $300 million 8.625% Senior Notes due 2014, $275 million 6.00% Senior Notes due 2016 and $700 million 9.75% Senior Notes due 2019. Schlumberger recorded a $417 million adjustment to increase the carrying amount of these notes to their estimated fair value. This adjustment will be amortized as a reduction of interest expense over the remaining term of the respective obligations.
(3)		In connection with the acquisition accounting, Schlumberger provided deferred taxes related to, among other items, the estimated fair value adjustments for acquired inventory, intangible assets and assumed debt obligations. Included in the provisions for deferred taxes are amounts relating to the outside basis difference associated with shares in certain Smith non-US subsidiaries for which no taxes have previously been provided. Schlumberger expects to reverse the outside basis difference primarily through the reorganization of those subsidiaries as well as through repatriating earnings in lieu of permanently reinvesting them. In this regard, Schlumberger is in the process of assessing certain factors that impact the ultimate amount of deferred taxes to be recorded. The amount of deferred taxes recorded will likely be revised after this assessment is completed. Any revision to the amount of deferred taxes recorded will impact the amount of goodwill recorded.


(4)		Prior to the completion of the merger, Smith and Schlumberger operated M-I SWACO, a drilling fluids joint venture that was 40% owned by Schlumberger and 60% owned by Smith. Effective at the closing of the merger, M-I SWACO is now owned 100% by Schlumberger. As a result of obtaining control of this joint venture, Schlumberger was required under generally accepted accounting principles to remeasure its previously held equity interest in the joint venture at its merger-date fair value and recognize the resulting pretax gain of $1.3 billion ($1.2 billion after-tax) in earnings. This gain is classified as Gain on Investment in M-I SWACO in the Consolidated Statement of Income.
		Prior to acquiring Smith, Schlumberger recorded income relating to this venture using the equity method of accounting. The carrying value of Schlumberger’s investment in the joint venture on December 31, 2009 was $1.4 billion, and was included within Investments in Affiliated Companies on the Consolidated Balance Sheet. Schlumberger’s equity income from this joint venture was $78 million in 2010 (representing the period from January 1, 2010 to August 27, 2010), $131 million in 2009 and $210 million in 2008. Schlumberger received cash distributions from the joint venture of $50 million in 2010, $106 million in 2009 and $57 million in 2008.
(5)		The goodwill recognized is primarily attributable to expected synergies that will result from combining the operations of Schlumberger and Smith as well as intangible assets that do not qualify for separate recognition. Approximately $0.2 billion of the goodwill is deductible for income tax purposes.

Acquisition of Geoservices

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 $915 million in cash.

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


(Stated in millions)
Cash	$	26
Other assets		184
Fixed assets		90
Goodwill		599
Intangible assets		377
Long-term debt		(145	)
Deferred tax liabilities		(64	)
Other liabilities		(152	)


	$	915

The long-term debt was repaid at the time of closing.

Intangible assets recorded in connection with this transaction, which primarily relate to customer relationships, will be amortized over a weighted average period of approximately 17 years. The amount allocated to goodwill represents the excess of the purchase price over the fair value of the net assets acquired and is not tax deductible for income tax purposes.

Other Acquisitions

Schlumberger has made other acquisitions and minority investments, none of which were significant on an individual basis, for cash payments, net of cash acquired, of $212 million during 2010, $514 million during 2009, and $345 million during 2008.

Supplemental Pro Forma Data

Smith’s results of operations have been included in Schlumberger’s financial statements for periods subsequent to the effective date of the merger. Smith contributed revenues of $3.3 billion and net income of $160 million (including the recurring effects of purchase accounting) to Schlumberger for the period from the closing of the merger through December 31, 2010. The following unaudited supplemental pro forma data (“pro forma data”) presents consolidated information as if the merger with Smith and the acquisition of Geoservices had been completed on January 1, 2009:


(Stated in millions, except per share data)
	2010		2009
Revenue	$	33,468	$	31,182
Net income	$	3,376	$	3,271
Net income attributable to Schlumberger	$	3,370	$	3,244
Diluted earnings per share	$	2.44	$	2.34

The pro forma data was prepared based on the historical financial information of Schlumberger, Smith and Geoservices and has been adjusted to give effect to pro forma adjustments that are (i) directly attributable to the transactions, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The pro forma data is not necessarily indicative of what Schlumberger’s results of operations actually would have been had the transactions been completed on January 1, 2009. Additionally, the pro forma data does not purport to project the future results of operations of the combined company nor do they reflect the expected realization of synergies associated with the transactions. The pro forma data reflects the application of the following adjustments:


	•	Elimination of the gain resulting from Schlumberger’s remeasurement of its previously held 40% equity interest in M-I SWACO, which is considered non-recurring.

	•	Additional depreciation and amortization expense associated with fair value adjustments to acquired identifiable intangible assets and property, plant and equipment.

	•	Elimination of charges incurred in 2010 related to the fair value adjustments to Smith’s inventory that has been sold as they will not have a long-term continuing impact.

	•	Reductions in interest expense as a result of increasing the carrying value of acquired debt obligations to its estimated fair value.

	•	Elimination of transaction costs incurred in 2010 that are directly related to the transactions, and do not have a continuing impact on the combined company’s operating results.

	•	The issuance of 176 million of shares of Schlumberger common stock.

Included in the 2010 and 2009 pro forma net income attributable to Schlumberger and diluted earnings per share presented above are the following significant charges and credits:

(Stated in millions, except per share data)

2010

2009

Diluted

Diluted

Net Income

EPS

Net Income

EPS

Impact

Impact *

Impact

Severance and other⁽¹⁾

0.06

0.06

Impairment relating to WesternGeco’s first generation Q-Land acquisition system⁽¹⁾

0.05

–

Other WesternGeco-related charges⁽¹⁾

0.05

–

Impact of elimination of tax deduction related to Medicare Part D subsidy⁽¹⁾

0.03

–

Mexico restructuring⁽¹⁾

0.03

–

Venezuelan currency-related losses⁽²⁾

0.03

–

Repurchase of bonds⁽¹⁾

0.03

–

Gain on remeasurement of investment in @Balance⁽²⁾

(18

)

(0.01

)

–

Postretirement benefits curtailment⁽¹⁾

–

122

0.09

Employee severance⁽²⁾

–

0.02

341

0.25

239

0.17


*		Does not add due to rounding


(1)		Relates to Schlumberger’s historical operations and is more fully described in Note 3 – Charges and Credits.
(2)		Relates to Smith’s historical operations.

Long-Term Debt and Debt Facility Agreements

12 Months Ended

Dec. 31, 2010

Long Term Debt and Debt Facility Agreements [Abstract]

Long-term Debt and Debt Facility Agreements


10.	Long-term Debt and Debt Facility Agreements

Long-term Debt consists of the following:


(Stated in millions)
As at December 31,	2010		2009

4.50% Guaranteed Notes due 2014	$	1,319	$	1,449
2.75% Guranteed Notes due 2015		1,310		–
5.25% Guaranteed Notes due 2013		659		727
9.75% Senior Notes due 2019⁽¹⁾		776		–
3.00% Guaranteed Notes due 2013		450		449
8.625% Senior Notes due 2014⁽¹⁾		272		–
6.00% Senior Notes due 2016⁽¹⁾		218		–
6.5% Notes due 2012		–		649
5.875% Guaranteed Bonds due 2011		–		362
Commercial paper borrowings		367		358
Other variable rate debt		133		360


		5,504		4,354
Fair value adjustment – hedging		13		1


	$	5,517	$	4,355


(1)		Represents long-term fixed rate debt obligations assumed in connection with the merger of Smith, net of amounts repurchased subsequent to the closing of the transaction.

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.

During the third and fourth quarters of 2010, Schlumberger repurchased all of its $650 million 6.50% Notes due 2012.

During the first quarter of 2009, Schlumberger entered into a €3.0 billion Euro Medium Term Note program. This program provides for the issuance of various types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies.

Schlumberger issued €1.0 billion 2.75% Guaranteed Notes due 2015 in the fourth quarter of 2010 under this program. Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until maturity, effectively making this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of 2.56%. Schlumberger also issued €1.0 billion 4.50% Guaranteed Notes due 2014 in the first quarter of 2009 under this program. Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until maturity, effectively making this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of 4.95%.

During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.

In September 2008, Schlumberger issued €500 million 5.25% Guaranteed Notes due 2013. Schlumberger entered into agreements to swap these euro notes for US dollars on the date of issue until maturity, effectively making this a US dollar denominated debt on which Schlumberger will pay interest in US dollars at a rate of 4.74%.

Commercial paper borrowings outstanding at December 31, 2010 and 2009 include certain notes issued in currencies other than the US dollar which were swapped for US dollars and pounds sterling on the date of issue until maturity. Commercial paper borrowings are classified as long-term debt to the extent of their backup by available and unused committed credit facilities maturing in more than one year and to the extent it is Schlumberger’s intent to maintain these obligations for longer than one year.

At December 31, 2010, Schlumberger had separate committed debt facility agreements aggregating $6.0 billion with commercial banks, of which $3.7 billion was available and unused. This included $4.9 billion of committed facilities which support commercial paper programs in the United States and Europe, of which $2.5 billion mature in December 2011 and $2.4 billion mature in April 2012. Interest rates and other terms of borrowing under these lines of credit vary from country to country. Borrowings under the commercial paper programs at December 31, 2010 were $1.9 billion ($0.4 billion at December 31, 2009). At December 31, 2010, $1.5 billion of the commercial paper borrowings were classified within Long-term debt – current portion in the Consolidated Balance Sheet.

On January 10, 2011, Schlumberger issued $1.1 billion of 4.200% Senior Notes due 2021 and $500 million of 2.650% Senior Notes due 2016.

A summary of Long-term Debt by currency, analyzed by Bonds and Notes, Commercial Paper (CP) and Other, at December 31 follows. As described in further detail above, the currencies are presented after taking into account currency swaps entered into on the date of issuance until maturity.


(Stated in millions)
	2010								2009
	Bonds and								Bonds and
	Notes		CP		Other		Total		Notes		CP		Other		Total

US dollar		$5,017	$	–	$	104	$	5,121		$3,275	$	–	$	59	$	3,334
Euro		–		183		–		183		362		135		231		728
Pound sterling		–		184		–		184		–		223		51		274
Norwegian kroner		–		–		17		17		–		–		19		19
Other		–		–		12		12		–		–		–		–


		$5,017	$	367	$	133	$	5,517		$3,637	$	358	$	360	$	4,355

The weighted average interest rate on variable rate debt as of December 31, 2010 was 1.0%.

Long-term Debt as of December 31, 2010, is due as follows: $445 million in 2012, $1.163 billion in 2013, $1.605 billion in 2014, $1.310 billion in 2015 and $994 million after 2015.

The fair value of Schlumberger’s Long-term Debt at December 31, 2010 and December 31, 2009 was $5.6 billion and $4.6 billion, respectively, and was estimated based on quoted market prices.

Convertible Debentures

During 2003, Schlumberger Limited issued $975 million aggregate principal amount of 1.5% Series A Convertible Debentures due June 1, 2023 and $450 million aggregate principal amount of 2.125% Series B Convertible Debentures due June 1, 2023. The Series A debentures were convertible, at the holders’ option, into shares of common stock of Schlumberger Limited at a conversion rate of 27.651 shares for each $1,000 of principal amount (equivalent to an initial conversion price of $36.165 per share) while the Series B debentures were convertible into common stock at a conversion rate of 25.000 shares for each $1,000 of principal (equivalent to an initial conversion price of $40.00 per share).

During 2008, all of the remaining $353 million of outstanding Series A debentures were converted into 9.8 million shares of Schlumberger common stock.

During 2008, $95 million of the Series B debentures were converted into 2.4 million shares of Schlumberger common stock. At December 31, 2009, there were $321 million of the Series B debentures outstanding. During 2010, $320 million of these debentures were converted by holders into 8.0 million shares of Schlumberger common stock and the remaining $1 million of outstanding Series B convertible debentures were redeemed for cash. Consequently, there are no convertible debentures outstanding at December 31, 2010.

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2010

Derivative Instruments and Hedging Activities [Abstract]

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. Approximately 80% of Schlumberger’s revenue in 2010 was denominated in US dollars. 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 hedging instruments, if any, is recorded directly to earnings.

At December 31, 2010, Schlumberger recognized a cumulative net $45 million gain in Accumulated other comprehensive loss 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 December 31, 2010, contracts were outstanding for the US dollar equivalent of $7.3 billion in various foreign currencies.

Commodity Price Risk

Schlumberger is exposed to the impact of market fluctuations in the price of certain commodities, such as metals and fuel. Schlumberger utilizes forward contracts to manage a small percentage of the price risk associated with forecasted metal 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.

At December 31, 2010, $12 million of commodity forward contracts were outstanding.

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 $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 receives 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%. This interest rate swap is designated as a fair value hedge of the underlying debt. This derivative instrument is 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.

The second 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 received interest at a fixed rate of 6.50% semi-annually and paid interest semi-annually at a floating rate of one-month LIBOR plus a spread of 4.84%. During the third and fourth quarters of 2010, Schlumberger repurchased all of the outstanding $650 million 6.50% Notes due 2012. Accordingly, this interest rate swap, which had previously been designated as a fair value hedge of the underlying debt, was settled during the fourth quarter and resulted in Schlumberger receiving proceeds of approximately $10 million.

At December 31, 2010, Schlumberger had fixed rate debt aggregating approximately $4.9 billion and variable rate debt aggregating approximately $3.2 billion, after taking into account the effects of the interest rate swaps.

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


(Stated in millions)
	Fair Value of
	Derivatives				Classification
	Dec. 31		Dec. 31
Derivative assets	2010		2009

Derivative designated as hedges:
Foreign exchange contracts		$4		$14	Other current assets
Foreign exchange contracts		37		216	Other Assets
Interest rate swaps		14		–	Other Assets


		$55		$230


Derivative not designated as hedges:
Commodity contracts		$3		$1	Other current assets
Foreign exchange contracts		9		11	Other current assets
Foreign exchange contracts		9		28	Other Assets


		$21		$40


		$76		$270

Derivative Liabilities
Derivative designated as hedges:
Foreign exchange contracts		$9		$15	Accounts payable and accrued liabilities
Foreign exchange contracts		77		51	Other Liabilities
Interest rate swaps		7		–	Accounts payable and accrued liabilities


		$93		$66


Derivative not designated as hedges:
Commodity contracts		$–		$3	Accounts payable and accrued liabilities
Foreign exchange contracts		14		–	Accounts payable and accrued liabilities
Foreign exchange contracts		–		25	Other Liabilities


		$14		$28

		$107		$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 of derivative instruments designated as fair value hedges and not designated as hedges on the Consolidated Statement of Income was as follows:


(Stated in millions)
	Gain/(Loss) Recognized
	in Income
	2010			2009		Classification

Derivatives designated as fair value hedges:
Foreign exchange contracts		$( 8	)		$105	Cost of revenue
Interest rate swaps		22			6	Interest expense

		$14			$111

Derivatives not designated as hedges:
Foreign exchange contracts		$(13	)		$32	Cost of revenue
Commodity contracts		1			2	Cost of revenue


		$(12	)		$34

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
	2010			2009			Classification

Foreign exchange contracts		$( 260	)		$95		Cost of revenue
Foreign exchange contracts		(14	)		(15	)	Research & engineering


		$(274	)		$80


(Stated in millions)
	Gain (Loss) Recognized in
	OCI
	2010			2009

Foreign exchange contracts		$(269	)		$223

Stock Compensation Plans

12 Months Ended

Dec. 31, 2010

Stock Compensation Plans [Abstract]

Stock Compensation Plans


13.	Stock Compensation Plans

Schlumberger has three types of stock-based compensation programs: stock options, a restricted stock and restricted stock unit program (collectively referred to as “restricted stock”) and a discounted stock purchase plan (“DSPP”).

Stock Options

Key employees are granted stock options under Schlumberger stock option plans. For all of the stock options granted, the exercise price equals the average of the high and low sales prices of Schlumberger stock on the date of grant; an option’s maximum term is ten years, and options generally vest in increments over four or five years.

The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions and resulting weighted-average fair value per share:


	2010			2009			2008

Dividend yield		1.3	%		1.2	%		1.0	%
Expected volatility		35	%		34	%		31	%
Risk free interest rate		2.9	%		2.2	%		3.2	%
Expected option life in years		6.9			6.9			7.0
Weighted-average fair value per share	$	24.13		$	13.92		$	29.33

The following table summarizes information concerning options outstanding and options exercisable by five ranges of exercise prices as of December 31, 2010:


(Shares stated in thousands)
	OPTIONS OUTSTANDING						OPTIONS EXERCISABLE
			Weighted-
			average		Weighted-				Weighted-
			remaining		average				average
	Options		contractual life		exercise		Options		exercise
Exercise prices range	Outstanding		(in years)		price		Exercisable		price

$16.87-$32.46		5,281		1.78	$	27.41		5,281	$	27.41
$32.62-$37.85		6,907		7.50	$	37.25		1,887	$	35.65
$38.53-$55.69		7,714		5.83	$	52.60		6,197	$	53.25
$56.61-$74.00		12,289		8.03	$	64.86		2,546	$	60.96
$84.93-$110.78		5,308		7.05	$	88.57		2,083	$	89.33


		37,499		6.47	$	55.33		17,994	$	49.09

The weighted average remaining contractual life of stock options exercisable as of December 31, 2010 was 4.6 years.

The following table summarizes stock option activity during the years ended December 31, 2010, 2009 and 2008:


(Shares stated in thousands)
	2010					2009					2008
				Weighted-					Weighted-					Weighted-
				average					average					average
				exercise					exercise					exercise
	Shares			price		Shares			price		Shares			price

Outstanding at beginning of year		35,500		$	50.30		32,301		$	50.36		35,719		$	41.02
Granted		8,283		$	66.67		7,981		$	40.87		5,422		$	84.95
Assumed in Smith transaction		581		$	28.77		–		$	–		–		$	–
Exercised		(5,962	)	$	37.60		(3,851	)	$	29.00		(5,444	)	$	32.69
Forfeited		(903	)	$	61.28		(931	)	$	58.82		(3,396	)	$	42.68


Outstanding at year-end		37,499		$	55.33		35,500		$	50.30		32,301		$	50.36

The aggregate intrinsic value of stock options outstanding as of December 31, 2010 was approximately $1.08 billion. The aggregate intrinsic value of stock options exercisable as of December 31, 2010 was approximately $630 million.

The total intrinsic value of options exercised during the years ended December 31, 2010, 2009 and 2008, was $188 million, $103 million and $119 million, respectively.

Restricted Stock

Restricted stock awards generally vest at the end of three years. There have not been any grants to date that are subject to performance-based vesting.

The following table summarizes information about restricted stock transactions:


(Shares stated in thousands)
	2010					2009					2008
				Weighted					Weighted					Weighted
				Average					Average					Average
	Restricted			Grant Date		Restricted			Grant Date		Restricted			Grant Date
	Stock			Fair Value		Stock			Fair Value		Stock			Fair Value

Unvested at beginning of year		1,343			$62.75		1,701			$66.49		885			$65.14
Granted		1,261			65.79		304			48.14		863			68.04
Vested		(286	)		63.92		(580	)		65.15		(18	)		65.35
Forfeited		(95	)		64.16		(82	)		69.23		(29	)		72.44


Unvested at end of year		2,223			$64.27		1,343			$62.75		1,701			$66.49

Discounted Stock Purchase Plan

Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld, subject to certain restrictions, to purchase Schlumberger common stock. The purchase price of the stock is 92.5% of the lower of the stock price at the beginning or end of the plan period at six-month intervals.

The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with the following assumptions and resulting weighted average fair value per share:


	2010			2009			2008

Dividend yield		1.6	%		1.1	%		0.9	%
Expected volatility		36	%		44	%		34	%
Risk free interest rate		0.3	%		0.3	%		2.7	%
Weighted average fair value per share	$	10.30		$	9.76		$	17.21

Total Stock-based Compensation Expense

The following summarizes stock-based compensation expense recognized in income:


(Stated in millions)
	2010		2009		2008

Stock options	$	121	$	118	$	111
Restricted stock		44		32		31
DSPP		33		36		30


	$	198	$	186	$	172

At December 31, 2010, there was $382 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements. Approximately $156 million is expected to be recognized in 2011, $122 million is expected to be recognized in 2012, $65 million in 2013, $35 million in 2014 and $4 million in 2015.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

Income Taxes


14.	Income Taxes

Schlumberger operates in more than 100 jurisdictions, where statutory tax rates generally vary from 0% to 50%.

Income from Continuing Operations before taxes which were subject to United States and non-United States income taxes for each of the three years ended December 31, was as follows:


(Stated in millions)
	2010		2009		2008

United States	$	638	$	86	$	1,432
Outside United States		4,518		3,848		5,420


	$	5,156	$	3,934	$	6,852

Schlumberger recorded $621 million of net pretax credits in 2010 ($226 million of net charges in the US and $847 million of net credits outside the US). Schlumberger recorded $238 million of pretax charges in 2009 ($73 million in the US and $165 million outside the US) and $116 million in 2008 ($15 million in the US and $101 million outside the US). These charges and credits are included in the table above and are more fully described in Note 3 – Charges and Credits.

The components of net deferred tax assets (liabilities) were as follows:


(Stated in millions)
	2010			2009

Postretirement benefits	$	327		$	447
Multiclient seismic data		43			104
Intangible assets		(1,674	)		(122	)
Investments in non-US subsidiaries		(353	)		–
Other, net		72			101


	$	(1,585	)	$	530

The above deferred balances at December 31, 2010 and 2009 are net of valuation allowances relating to net operating losses in certain countries of $263 million and $251 million, respectively. The deferred tax balances at December 31, 2009 were net of a valuation allowance relating to a foreign tax credit carryforward of $30 million.

The components of Taxes on income were as follows:


(Stated in millions)
	2010			2009			2008

Current:
United States – Federal	$	76		$	(191	)	$	453
United States – State		14			(6	)		34
Outside United States		909			594			949


	$	999		$	397		$	1,436

Deferred:
United States – Federal	$	183		$	247		$	23
United States – State		2			13			1
Outside United States		(281	)		86			(12	)
Valuation allowance		(13	)		27			(18	)


	$	(109	)	$	373		$	(6	)


Consolidated taxes on income	$	890		$	770		$	1,430

A reconciliation of the United States statutory federal tax rate (35%) to the consolidated effective tax rate is:


	2010			2009			2008

US statutory federal rate		35	%		35	%		35	%
US state income taxes		–			–			1
Non-US income taxed at different rates		(14	)		(16	)		(13	)
Effect of equity method investment		–			–			(1	)
Charges and Credits (See Note 3)		(3	)		1			–
Other		(1	)		–			(1	)


Effective income tax rate		17	%		20	%		21	%

Schlumberger conducts business in more than 100 jurisdictions, a number of which have tax laws that are not fully defined and are evolving. Due to the geographic breadth of the Schlumberger operations, numerous tax audits may be ongoing throughout the world at any point in time. Tax liabilities are recorded based on estimates of additional taxes which will be due upon the conclusion of these audits. Estimates of these tax liabilities are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, Schlumberger will record additional tax expense or tax benefit in the period in which such resolution occurs.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2010, 2009 and 2008 is as follows:


(Stated in millions)
	2010			2009			2008

Balance at beginning of year	$	1,026		$	877		$	858
Additions based on tax positions related to the current year		190			178			217
Additions for tax positions of prior years		8			36			19
Additions related to acquisitions		115			–			6
Impact of changes in exchange rates		(3	)		39			(72	)
Settlements with tax authorities		(36	)		(16	)		(20	)
Reductions for tax positions of prior years		(99	)		(68	)		(111	)
Reductions due to the lapse of the applicable statute of limitations		(36	)		(20	)		(20	)


Balance at end of year	$	1,165		$	1,026		$	877

The amounts above exclude accrued interest and penalties of $210 million, $168 million and $136 million at December 31, 2010, 2009 and 2008 respectively. All of the unrecognized tax benefits, if recognized, would impact the Schlumberger effective tax rate.

Schlumberger classifies interest and penalties relating to uncertain tax positions within Taxes on income in the Consolidated Statement of Income. During 2010, 2009 and 2008, Schlumberger recognized approximately $42 million, $32 million and $25 million in interest and penalties, respectively.

The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which Schlumberger operates:


Brazil		2004 – 2010
Canada		2003 – 2010
Mexico		2005 – 2010
Norway		2003 – 2010
Russia		2007 – 2010
Saudi Arabia		2001 – 2010
United Kingdom		2008 – 2010
United States		2005 – 2010

In certain of the jurisdictions noted above, Schlumberger operates through more than one legal entity, each of which has different open years subject to examination. The table above presents the open years subject to examination for the most material of the legal entities in each jurisdiction. Additionally, it is important to note that tax years are technically not closed until the statute of limitations in each jurisdiction expires. In the jurisdictions noted above, the statute of limitations can extend beyond the open years subject to examination.

Segment Information

12 Months Ended

Dec. 31, 2010

Segment Information [Abstract]

Segment Information


17.	Segment Information

Schlumberger operates five business segments as of December 31, 2010: Oilfield Services, WesternGeco, M-I SWACO, Smith Oilfield and Distribution.

The Oilfield Services segment falls into four clearly defined economic and geographical areas and is evaluated on the following basis: North America, Latin America, Europe including the CIS and Africa, and Middle East & Asia. The Oilfield Services segment provides virtually all exploration and production services required during the life of an oil and gas reservoir.

WesternGeco provides comprehensive worldwide reservoir imaging, monitoring and development services with extensive seismic crews and data processing centers, as well as a large multiclient seismic library. Services range from 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management.

M-I SWACO is a leading supplier of drilling fluid systems engineered to improve wellbore quality and increase drilling performance. It also offers a broad range of waste management equipment and services, provides completion fluid and related tools and supplies oilfield production chemicals.

The Smith Oilfield segment provides a comprehensive suite of premium products and services used in oil and natural gas development activities. It is comprised of drilling and completion services operations, which include drill bits, directional drilling services and downhole tools.

Distribution consists of the Wilson International Inc. distribution operations and a majority-owned interest in CE Franklin Ltd., a publicly traded Canadian distribution company. It provides products and services to the energy, refining, petrochemical, power generation and mining industries.

Financial information for the years ended December 31, 2010, 2009 and 2008, by segment, is as follows:


(Stated in millions)
	2010
			Income
			before					Depn. &		Capital
	Revenue		taxes			Assets		Amortn.		Expenditures

*OILFIELD SERVICES*
North America	$	5,010	$	802		$	2,725	$	412	$	451
Latin America		4,321		723			2,947		289		417
Europe/CIS/Africa		6,882		1,269			4,917		715		849
Middle East & Asia		5,586		1,696			3,509		517		597
Elims/Other⁽¹⁾		280		(15	)		1,639		31		131


		22,079		4,475			15,737		1,964		2,445


*WESTERNGECO*		1,987		267			2,896		579		276
*M-I SWACO*		1,568		197			2,786		43		80
*SMITH OILFIELD*		957		132			2,329		76		110
*DISTRIBUTION*		774		29			780		2		2
Goodwill and intangible assets							19,114
All other assets							1,580
Corporate⁽²⁾		82		(405	)		6,545		95		1
Interest income⁽³⁾				43
Interest expense⁽⁴⁾				(202	)
Charges & credits⁽⁵⁾				620


	$	27,447	$	5,156		$	51,767	$	2,759	$	2,914


(Stated in millions)
	2009
			Income
			before					Depn. &		Capital
	Revenue		taxes			Assets		Amortn.		Expenditures

*OILFIELD SERVICES*
North America	$	3,707	$	216		$	2,264	$	433	$	272
Latin America		4,225		753			3,117		261		393
Europe/CIS/Africa		7,150		1,707			4,603		653		824
Middle East & Asia		5,234		1,693			3,162		531		417
Elims/Other⁽¹⁾		202		(43	)		1,630		1		21


		20,518		4,326			14,776		1,879		1,927


*WESTERNGECO*		2,122		326			3,065		566		463
Goodwill and intangible assets							6,091
All other assets							1,873
Corporate⁽²⁾		62		(344	)		7,660		31		5
Interest income⁽³⁾				52
Interest expense⁽⁴⁾				(188	)
Charges & credits⁽⁵⁾				(238	)


	$	22,702	$	3,934		$	33,465	$	2,476	$	2,395


(Stated in millions)
	2008
			Income
			before					Depn. &			Capital
	Revenue		taxes			Assets		Amortn.			Expenditures

*OILFIELD SERVICES*
North America	$	5,914	$	1,371		$	2,728	$	433		$	750
Latin America		4,230		858			2,529		223			414
Europe/CIS/Africa		8,180		2,244			4,410		600			988
Middle East & Asia		5,724		2,005			3,503		496			762
Elims/Other⁽¹⁾		234		27			2,014		(9	)		128


		24,282		6,505			15,184		1,743			3,042


*WESTERNGECO*		2,838		836			2,956		518			680
Goodwill and intangible assets							6,009
All other assets							1,914
Corporate⁽²⁾		43		(268	)		6,031		8			1
Interest income⁽³⁾				112
Interest expense⁽⁴⁾				(217	)
Charges & credits⁽⁵⁾				(116	)


	$	27,163	$	6,852		$	32,094	$	2,269		$	3,723


(1)		Includes certain headquarter administrative costs which are not allocated geographically, manufacturing and certain other operations, and other cost and income items maintained at the Oilfield Services level.

(2)		Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with intangible assets recorded as a result of the merger with Smith and certain other nonoperating items. Corporate assets consist of cash, short-term investments, fixed income investments, held to maturity and investments in affiliates.

(3)		Interest income excludes amounts which are included in the segments’ income (2010 - $7 million: 2009 – $10 million; 2008 – $7 million).

(4)		Interest expense excludes amounts which are included in the segments’ income (2010 - $5 million; 2009 – $33 million; 2008 – $30 million).

(5)		See Note 3 – Charges and Credits.

Segment assets consist of receivables, inventories, fixed assets and multiclient seismic data.

Depreciation & Amortization includes multiclient seismic data costs.

During each of the three years ended December 31, 2010, 2009 and 2008, no single customer exceeded 10% of consolidated revenue.

Schlumberger did not have revenue from third-party customers in its country of domicile during the last three years. Revenue in the United States in 2010, 2009 and 2008 was $6.5 billion, $3.7 billion and $5.9 billion, respectively.

Pension and Other Benefit Plans

12 Months Ended

Dec. 31, 2010

Pension and Other Benefit Plans [Abstract]

Pension and Other Benefit Plans


18.	Pension and Other Benefit Plans

Pension Plans

Schlumberger sponsors several defined benefit pension plans that cover substantially all US employees hired prior to October 1, 2004. The benefits are based on years of service and compensation, on a career-average pay basis.

In addition to the United States defined benefit pension plans, Schlumberger sponsors several other international defined benefit pension plans. The most significant of these international plans are the International Staff Pension Plan, which was converted from a defined contribution plan to a defined benefit pension plan during the fourth quarter of 2008, and the UK pension plan (collectively, the “International plans”). The International Staff Pension Plan covers certain international employees and is based on years of service and compensation on a career-average pay basis. The UK plan covers employees hired prior to April 1, 1999, and is based on years of service and compensation, on a final salary basis.

The weighted-average assumed discount rate, compensation increases and the expected long-term rate of return on plan assets used to determine the net pension cost for the US and International plans were as follows:


	US									International
	2010			2009			2008			2010			2009			2008

Discount rate		6.00	%		6.94	%		6.50	%		5.89	%		6.81	%		5.80	%
Compensation increases		4.00	%		4.00	%		4.00	%		4.93	%		4.93	%		4.90	%
Return on plan assets		8.50	%		8.50	%		8.50	%		8.00	%		8.00	%		8.00	%

Net pension cost for 2010, 2009 and 2008 included the following components:


(Stated in millions)
	US									International
	2010			2009			2008			2010			2009			2008

Service cost – benefits earned during the period	$	56		$	52		$	56		$	51		$	67		$	33
Interest cost on projected benefit obligation		142			143			130			208			189			58
Expected return on plan assets		(191	)		(166	)		(162	)		(228	)		(181	)		(75	)
Amortization of net loss		60			29			13			19			–			11
Amortization of prior service cost		4			5			7			113			117			1


		71			63			44			163			192			28
Curtailment charge		–			32			–			–			98			–


	$	71		$	95		$	44		$	163		$	290		$	28

During 2009, due to the actions taken by Schlumberger to reduce its global workforce (See Note 3 – Charges and Credits), 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. Accordingly, Schlumberger recorded a curtailment charge of $136 million during the second quarter of 2009 ($130 million relating to the pension plans and $6 million relating to the postretirement medical plan). The curtailment charge includes 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. As a result of the curtailment, Schlumberger performed a remeasurement of the impacted plans using a discount rate of 7.25% (as compared to 6.50% at December 31, 2008). All other significant assumptions were unchanged from December 31, 2008 measurement date.

As the International Staff Pension Plan was converted to a defined benefit pension plan during the fourth quarter of 2008, the net pension cost for this plan was not significant in 2008.

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans were as follows:


	US						International
	2010			2009			2010			2009

Discount rate		5.50	%		6.00	%		5.47	%		5.89	%
Compensation increases		4.00	%		4.00	%		4.91	%		4.93	%

The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:


(Stated in millions)
	US						International
	2010			2009			2010			2009

*Change in Projected Benefit Obligations*
Projected benefit obligation at beginning of year	$	2,439		$	2,150		$	3,518		$	2,767
Service cost		56			52			51			67
Interest cost		142			143			208			189
Contributions by plan participants		–			–			76			61
Actuarial losses		172			191			310			449
Currency effect		–			–			(28	)		69
Benefits paid		(122	)		(110	)		(121	)		(97	)
Plan amendments		82			–			74			16
Impact of curtailment		–			13			–			(3	)


Projected benefit obligation at end of year	$	2,769		$	2,439		$	4,088		$	3,518

*Change in Plan Assets*
Plan assets at fair value at beginning of year	$	2,254		$	1,490		$	2,976		$	1,913
Actual return on plan assets		316			358			426			444
Currency effect		–			–			(26	)		69
Company contributions		187			516			433			586
Contributions by plan participants		–			–			76			61
Benefits paid		(122	)		(110	)		(121	)		(97	)


Plan assets at fair value at end of year	$	2,635		$	2,254		$	3,764		$	2,976

*Unfunded Liability*	$	(134	)	$	(185	)	$	(324	)	$	(542	)

*Amounts Recognized in Balance Sheet*
Postretirement Benefits	$	(134	)	$	(185	)	$	(367	)	$	(542	)
Other Assets		–			–			43			–


	$	(134	)	$	(185	)	$	(324	)	$	(542	)

*Amounts Recognized in Accumulated Other Comprehensive Income*
Actuarial losses	$	819		$	833		$	447		$	335
Prior service cost		114			36			840			881


	$	933		$	869		$	1,287		$	1,216

Accumulated benefit obligation	$	2,568		$	2,226		$	3,785		$	3,257

The funded status position represents the difference between the plan assets and the projected benefit obligation (“PBO”). The PBO represents the actuarial present value of benefits based on employee service and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation, but does not include an assumption about future compensation levels.

The weighted-average allocation of plan assets and the target allocation by asset category are as follows:


	US									International
	Target			2010			2009			Target			2010			2009

Equity securities		50 – 60	%		52	%		48	%		55 – 70	%		61	%		59	%
Debt securities		28 – 38			40			38			20 – 35			31			32
Cash and cash equivalents		–			2			8			–			3			4
Other investments		0 – 12			6			6			0 – 10			5			5


		100	%		100	%		100	%		100	%		100	%		100	%

Schlumberger’s investment policy includes various guidelines and procedures designed to ensure that assets are prudently invested in a manner necessary to meet the future benefit obligation of the pension plans. The policy does not permit the direct investment of plan assets in any Schlumberger security. Schlumberger’s investment horizon is long-term and accordingly the target asset allocations encompass a strategic, long-term perspective of capital markets, expected risk and return behavior and perceived future economic conditions. The key investment principles of diversification, assessment of risk and targeting the optimal expected returns for given levels of risk are applied. The target asset allocation is reviewed periodically and is determined based on a long-term projection of capital market outcomes, inflation rates, fixed income yields, returns, volatilities and correlation relationships. The inclusion of any given asset class in the target asset allocation is considered in relation to its impact on the overall risk/return characteristics as well as its impact on the overall investment return. As part of its strategy, Schlumberger may utilize certain derivative instruments, such as options, futures, swaps and forwards, within the plans to manage risks (currency, interest rate, etc.) or as a substitute for physical securities or to obtain exposure to different markets.

Asset performance is monitored frequently with an overall expectation that plan assets will meet or exceed the weighted index of its target asset allocation and component benchmark over rolling five year periods.

The expected long-term rate of return on assets assumptions reflect the average rate of earnings expected on funds invested or to be invested. The assumptions have been determined by reflecting expectations regarding future rates of return for the portfolio considering the asset allocation and related historical rates of return. The appropriateness of the assumptions is reviewed annually.

The fair value of Schlumberger’s pension plan assets at December 31, 2010, by asset category, was as follows:

The fair values presented below were determined based on valuation techniques categorized as follows:


	•	Level one: The use of quoted prices in active markets for identical instruments.

	•	Level two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data.

	•	Level three: The use of significantly unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing.


(Stated in millions)
	US Plan Assets
	2010								2009
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three

Asset Category:
Cash and Cash Equivalents	$	67	$	35	$	32	$	–	$	191	$	191	$	–	$	–
Equity Securities:
US^(a)		885		885						710		710
International^(b)		473		370		103				355		280		75
Debt securities:
Corporate bonds^(c)		220				220				193				193
Government and government-related debt securities^(d)		554		148		406				462		161		301
Government agency collateralized mortgage obligations and mortgage backed securities^(e)		201				201				136				136
Other collateralized mortgage obligations and mortgage-backed securities^(f)		67				67				71				71
Other Investments:
Private equity^(g)		128						128		99						99
Real estate^(h)		40						40		37						37


Total	$	2,635	$	1,438	$	1,029	$	168	$	2,254	$	1,342	$	776	$	136


(Stated in millions)
	International Plan Assets
	2010								2009
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three

Asset Category:
Cash and Cash Equivalents	$	106	$	106	$	–	$	–	$	111	$	111	$	–	$	–
Equity Securities:
US^(a)		1,268		1,268						1,113		1,113
International^(b)		1,031		1,031						643		643
Debt securities:
Corporate bonds^(c)		289		15		274				257		11		246
Government and government-related^(d)		693		522		171				492		378		114
Government agency collateralized mortgage obligations and mortgage backed securities^(e)		125		44		81				137		20		117
Other collateralized mortgage obligations and mortgage-backed securities^(f)		74				74				70				70
Other Investments:
Private equity^(g)		114						114		87						87
Real estate^(h)		64						64		66						66


Total	$	3,764	$	2,986	$	600	$	178	$	2,976	$	2,276	$	547	$	153


(a)		US equities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.
(b)		International equities are invested in companies that are traded on exchanges outside the US and are well diversified by industry sector, country and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets with a small percentage in emerging markets.
(c)		Corporate bonds consist primarily of investment grade bonds from diversified industries.
(d)		Government and government-related debt securities are comprised primarily of inflation protected US treasuries and, to a lesser extent, other government-related securities.
(e)		Government agency collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by governmental and quasi-governmental entities.
(f)		Other collateralized mortgage obligations and mortgage-backed securities are debt obligations that represent claims to the cash flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by private entities.
(g)		Private equity includes investments in several fund of funds limited partnerships.

(h)		Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.

The funding policy is to annually contribute amounts that are based upon a number of factors including the actuarial accrued liability, amounts that are deductible for income tax purposes, legal funding requirements and available cash flow. Schlumberger currently anticipates contributing approximately $600 million to $650 million to its postretirement benefit plans in 2011, subject to market and business conditions.

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						Net Periodic Benefit Cost
	at December 31,						for the year
	2010			2009			2010			2009			2008

Discount rate		5.50	%		6.00	%		6.00	%		6.94	%		6.50	%
Return on plan assets		–			–			8.00	%		8.00	%		8.00	%
Current medical cost trend rate		8.00	%		8.00	%		8.00	%		8.00	%		9.00	%
Ultimate medical cost trend rate		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2017			2016			2016			2015			2012

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


(Stated in millions)
	2010			2009			2008

Service cost – benefits earned during the period	$	23		$	19		$	23
Interest cost on projected benefit obligation		58			56			52
Expected return on plan assets		(6	)		(2	)		(3	)
Amortization of prior service credit		(21	)		(25	)		(27	)
Amortization of net loss		11			3			10


		65			51			55
Curtailment charge		–			6			–


	$	65		$	57		$	55

The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:


(Stated in millions)
	2010			2009

*Change in Accumulated Postretirement Benefit Obligation*
Benefit obligation at beginning of year	$	991		$	862
Service cost		23			19
Interest cost		58			56
Contributions by plan participants		4			5
Actuarial losses		8			67
Benefits paid		(33	)		(31	)
Impact of curtailment		–			13


Benefit obligation at end of year	$	1,051		$	991

*Change in Plan Assets*
Plan assets at fair value at beginning of year	$	58		$	29
Company contributions		248			47
Contributions by plan participants		5			5
Benefits paid		(33	)		(31	)
Actual return on plan assets		12			8


Plan assets at fair value at end of year	$	290		$	58

*Unfunded Liability*	$	(761	)	$	(933	)

*Amounts Recognized in Accumulated*
*Other Comprehensive Income*
Actuarial losses	$	212		$	223
Prior service cost		(35	)		(56	)


	$	177		$	167

The unfunded position 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.

Assumed health care cost trend rates have a significant effect on the amounts reported for the US postretirement medical plan. A one percentage point change in assumed health care cost trend rates would have the following effects:


(Stated in millions)
	One percentage		One percentage
	point increase		point decrease

Effect on total service and interest cost components	$	15	$	(12	)
Effect on accumulated postretirement benefit obligation	$	177	$	(145	)

Other Information

The expected benefits to be paid under the US and International pension plans as well as the postretirement medical plan (which is disclosed net of the annual Medicare Part D subsidy, which ranges from $3 million to $7 million per year) were as follows:


(Stated in millions)
	Pension Benefits				Postretirement
	US		International		Medical Plan

2011	$	125	$	134	$	40
2012		129		146		43
2013		134		158		46
2014		139		170		50
2015		145		182		53
2016- 2020		856		1,083		312

Included in Accumulated Other Comprehensive Income at December 31, 2010 are non-cash pretax charges which have not yet been recognized in net periodic benefit cost. The estimated amounts that will be amortized from the estimated portion of each component of Accumulated Other Comprehensive Income which is expected to be recognized as a component of net periodic benefit cost during the year-ending December 31, 2011 are as follows:


(Stated in millions)
			Postretirement
	Pension		Medical
	Plans		Plan

Net actuarial losses	$	89	$	11
Prior service cost/(credit)	$	132	$	(12	)

In addition to providing defined pension benefits and a postretirement medical plan, Schlumberger and its subsidiaries have other deferred benefit programs, primarily profit sharing and defined contribution pension plans. Expenses for these programs were $403 million, $418 million and $482 million in 2010, 2009 and 2008, respectively.

Summary of Accounting Policies (Policies)	12 Months Ended
Summary of Accounting Policies (Policies)	Dec. 31, 2010
Summary of Accounting Policies (Policies) [Abstract]
Principles of Consolidation	*Principles of Consolidation* The accompanying Consolidated Financial Statements include the accounts of Schlumberger, its wholly-owned subsidiaries, and subsidiaries over which it exercises a controlling financial interest. All significant intercompany transactions and balances have been eliminated. Investments in entities in which Schlumberger does not have a controlling financial interest, but over which it has significant influence are accounted for using the equity method. Schlumberger’s share of the after-tax earnings of equity method investees is included in Interest and other income, net. Investments in which Schlumberger does not have the ability to exercise significant influence are accounted for using the cost method. Both equity and cost method investments are classified in Investments in Affiliated Companies.
Reclassifications	*Reclassifications* Certain prior year items have been reclassified to conform to the current year presentation.
Use of Estimates	*Use of Estimates* The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, Schlumberger evaluates its estimates, including those related to collectibility of accounts receivable; valuation of inventories and investments; recoverability of goodwill, intangible assets and investments in affiliates; income taxes; multiclient seismic data; contingencies and actuarial assumptions for employee benefit plans. Schlumberger bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Revenue Recognition	*Revenue Recognition* Schlumberger recognizes revenue based upon purchase orders, contracts or other persuasive evidence of an arrangement with the customer that include fixed or determinable prices provided that collectibility is reasonably assured. Revenue is recognized for services when they are rendered. Revenue is recognized for products upon delivery, when the customer assumes the risks and rewards of ownership. Certain products may be provided on a consigned basis in which case revenue is recognized when the products are consumed provided that all other revenue recognition criteria have been met. Revenue from seismic contract services performed on a dayrate basis is recognized as the service is performed. Revenue from other contract services, including pre-funded multiclient surveys, is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. This method requires revenue to be recognized based upon quantifiable measures of progress, such as square kilometers acquired. Multiclient data surveys are licensed or sold to customers on a non-transferable basis. Revenue on completed multiclient data surveys is recognized upon obtaining a signed licensing agreement and providing customers with access to such data. Revenue is occasionally generated from contractual arrangements that include multiple deliverables. Revenue from these arrangements is recognized as each item is delivered based on their relative fair value and when the delivered items have stand-alone value to the customer. Revenue derived from the sale of licenses of Schlumberger software may include installation, maintenance, consulting and training services. If services are not essential to the functionality of the software, the revenue for each element of the contract is recognized separately based on its respective vendor specific objective evidence of fair value when all of the following conditions are met: a signed contract is obtained, delivery has occurred, the fee is fixed or determinable and collectibility is probable.
Translation of Non-United States Currencies	*Translation of Non-United States Currencies* The functional currency of Schlumberger is primarily the US dollar. Assets and liabilities recorded in functional currencies other than US dollars are translated at period end exchange rates. The resulting adjustments are charged or credited directly to the Equity section of the Consolidated Balance Sheet. Revenue and expenses are translated at the weighted-average exchange rates for the period. Realized and unrealized transaction gains and losses are included in income in the period in which they occur. Transaction losses of $27 million net of hedging activities, were recognized in 2010. In 2009 and 2008, transaction gains net of hedging activities of $73 million and $8 million, respectively, were recognized.
Investments	*Investments* The Consolidated Balance Sheet reflects the Schlumberger investment portfolio separated between current and long term, based on maturity. Both Short-term investments and Fixed Income Investments, held to maturity are comprised primarily of money market funds, eurodollar time deposits, certificates of deposit, commercial paper, euro notes and Eurobonds, and are substantially denominated in US dollars. Under normal circumstances it is the intent of Schlumberger to hold the investments until maturity, with the exception of investments that are considered trading (December 31, 2010 – $189 million; December 31, 2009 – $184 million). Short-term investments that are designated as trading are stated at fair value, which is estimated using quoted market prices for those or similar investments. All other investments are stated at cost plus accrued interest, which approximates market. The unrealized gains/losses on investments designated as trading were not significant at both December 31, 2010 and 2009. For purposes of the Consolidated Statement of Cash Flows, Schlumberger does not consider short-term investments to be cash equivalents as a significant portion have original maturities in excess of three months. Fixed Income Investments, held to maturity at December 31, 2010 of $484 million mature as follows: $289 million in 2012, $80 million in 2013 and $115 million in 2014.
Inventories	*Inventories* Inventories are stated at average cost or at market, whichever is lower. Costs included in Inventories consist of materials, direct labor and manufacturing overhead.
Fixed Assets and Depreciation	*Fixed Assets and Depreciation* Fixed assets are stated at cost less accumulated depreciation, which is provided for by charges to income over the estimated useful lives of the assets using the straight-line method. Fixed assets include the manufacturing cost of oilfield technical equipment manufactured or assembled by subsidiaries of Schlumberger. Expenditures for replacements and improvements are capitalized. Maintenance and repairs are charged to operating expenses as incurred. Upon sale or other disposition, the applicable amounts of asset cost and accumulated depreciation are removed from the balance sheet and the net amount, less proceeds from disposal, is charged or credited to income.
Multiclient Seismic Data	*Multiclient Seismic Data* The multiclient library consists of completed and in-process seismic surveys that are licensed on a nonexclusive basis. Multiclient surveys are primarily generated utilizing Schlumberger resources. Schlumberger capitalizes costs directly incurred in acquiring and processing the multiclient seismic data. Such costs are charged to Cost of revenue based on the percentage of the total costs to the estimated total revenue that Schlumberger expects to receive from the sales of such data. However, under no circumstance will an individual survey carry a net book value greater than a 4- year straight-line amortized value. The carrying value of the multiclient library is reviewed for impairment annually as well as when an event or change in circumstance indicating impairment may have occurred. Adjustments to the carrying value are recorded when it is determined that estimated future cash flows, which involves significant judgment on the part of Schlumberger, would not be sufficient to recover the carrying value of the surveys. Significant adverse changes in Schlumberger’s estimated future cash flows could result in impairment charges in a future period.
Goodwill, Other Intangibles and Long-lived Assets	*Goodwill, Other Intangibles and Long-lived Assets* Schlumberger records the excess of purchase price over the fair value of the tangible and identifiable intangible assets acquired as goodwill. Goodwill is tested for impairment annually as well as when an event or change in circumstance indicates an impairment may have occurred. Goodwill is tested for impairment by comparing the fair value of Schlumberger’s individual reporting units to their carrying amount to determine if there is a potential goodwill impairment. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill of the reporting unit is less than its carrying value. Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involve significant estimates on the part of management. If there is a material change in economic conditions or other circumstances influencing the estimate of future cash flows or fair value, Schlumberger could be required to recognize impairment charges in the future. Intangible assets consist primarily of customer relationships, technology/technical know-how and tradenames acquired in business combinations. Customer relationships are generally amortized over periods ranging from 7 to 28 years, acquired technology/technical know-how are generally amortized over periods ranging from 5 to 18 years and tradenames are generally amortized over periods ranging from 5 years to 30 years.
Taxes on Income	*Taxes on Income* Schlumberger computes taxes on income in accordance with the tax rules and regulations of the many taxing authorities where the income is earned. The income tax rates imposed by these taxing authorities vary substantially. Taxable income may differ from pretax income for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, an appropriate provision for deferred income taxes is made. Any effect of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. When it is more likely than not that a portion or all of the deferred tax asset will not be realized in the future, Schlumberger provides a corresponding valuation allowance against deferred tax assets. Schlumberger’s tax filings are subject to regular audit by the tax authorities in most of the jurisdictions in which it conducts business. These audits may result in assessments for additional taxes which are resolved with the authorities or, potentially, through the courts. Schlumberger recognizes the impact of a tax position in its financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Tax liabilities are recorded based on estimates of additional taxes which will be due upon the conclusion of these audits. Estimates of these tax liabilities are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, Schlumberger will record additional tax expense or tax benefit in the year in which such resolution occurs. Schlumberger generally does not provide income taxes relating to undistributed earnings, as the earnings either would not be taxable when remitted or are considered to be indefinitely reinvested.
Concentration of Credit Risk	*Concentration of Credit Risk* Schlumberger’s assets that are exposed to concentrations of credit risk consist primarily of cash, short-term investments, fixed income investments held to maturity, receivables from clients and derivative financial instruments. Schlumberger places its cash, short-term investments and fixed income investments held to maturity with financial institutions and corporations, and limits the amount of credit exposure with any one of them. Schlumberger regularly evaluates the creditworthiness of the issuers in which it invests. The receivables from clients are spread over many countries and customers. Schlumberger maintains an allowance for uncollectible accounts receivable based on expected collectibility and performs ongoing credit evaluations of its customers’ financial condition. By using derivative financial instruments to hedge exposure to changes in exchange rates and commodity prices, Schlumberger exposes itself to some credit risk. Schlumberger minimizes this credit risk by entering into transactions with high-quality counterparties, limiting the exposure to each counterparty and monitoring the financial condition of its counterparties.
Research & Engineering	*Research & Engineering* All research and engineering expenditures are expensed as incurred.
Earnings per Share	*Earnings per Share* Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share is calculated by first adding back to net income the interest expense on any outstanding convertible debentures and then dividing this adjusted net income attributable to Schlumberger by the sum of (i) unvested restricted stock units; and (ii) the weighted average number of common shares outstanding assuming dilution. The weighted average number of common shares outstanding assuming dilution assumes (a) that all stock options which are in the money are exercised at the beginning of the period and that the proceeds are used by Schlumberger to purchase shares at the average market price for the period, and (b) the conversion of any outstanding convertible debentures.

Charges and Credits (Tables)

12 Months Ended

Dec. 31, 2010

Charges and Credits (Tables) [Abstract]

Repurchase of 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

Summary Of Charges And Credits


(Stated in millions)
							Non-
							controlling
	Pretax			Tax			Interests		Net			Income Statement 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
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	)

Schedule of charges related to workforce reductions


(Stated in millions)
					Non-
					controlling
	Pretax		Tax		Interests		Net		Income Statement Classification
Workforce reductions	$	102	$	17	$	–	$	85		Restructuring & other
Postretirement benefits curtailment		136		14		–		122		Restructuring & other


	$	238	$	31	$	–	$	207

Schedule of charges related to assets written off


(Stated in millions)
					Non-
					controlling
	Pretax		Tax		Interests		Net		Income Statement Classification
Workforce reductions	$	74	$	9	$	–	$	65	Restructuring & other
Provision for doubtful accounts		32		8		6		18	Restructuring & other
Other		10		–		–		10	Restructuring & other


	$	116	$	17	$	6	$	93

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2010

Acquisitions (Tables) [Abstract]

Fair Value of the Consideration Transferred to Effect the Merger With Smith


(Stated in millions, except exchange ratio and per share amounts)
Number of shares of Smith common stock outstanding as of the acquisition date		248
Number of Smith unvested restricted stock units outstanding as of the acquisition date		4


		252
Multiplied by the exchange ratio		0.6966


Equivalent Schlumberger shares of common stock issued		176
Schlumberger closing stock price on August 27, 2010	$	55.76


Common stock equity consideration	$	9,812
Fair value of Schlumberger equivalent stock options issued	$	16


Total fair value of the consideration transferred	$	9,828

Business Combination, Preliminary Allocation of the Purchase Price Disclosure


(Stated in millions)
Cash	$	399
Accounts receivable		1,831
Inventory⁽¹⁾		2,013
Fixed assets		2,017
Intangible assets:
Tradenames (weighted-average life of 25 years)		1,560
Technology (weighted-average life of 16 years)		1,170
Customer relationships (weighted average life of 23 years)		1,360
Other assets		429
Accounts payable and accrued liabilities		(1,460	)
Long-term debt⁽²⁾		(2,141	)
Deferred taxes⁽³⁾		(1,936	)
Other liabilities		(528	)


sub-total	$	4,714
Less:
Investment in M-I SWACO⁽⁴⁾		(1,429	)
Noncontrolling interests		(111	)


Total identifiable net assets	$	3,174
Gain on investment in M-I SWACO⁽⁴⁾		(1,238	)
Goodwill⁽⁵⁾		7,892


Total consideration transferred	$	9,828


(1)		Schlumberger recorded an adjustment of approximately $155 million to write-up the acquired inventory to its estimated fair value. Schlumberger’s cost of revenue reflected this increased valuation as this inventory was sold. Accordingly, Schlumberger’s margins were temporarily reduced in the initial periods subsequent to the merger.
(2)		In connection with the merger, Schlumberger assumed all of the debt obligations of Smith including its long-term fixed rate notes consisting of the following: $220 million 6.75% Senior Notes due 2011, $300 million 8.625% Senior Notes due 2014, $275 million 6.00% Senior Notes due 2016 and $700 million 9.75% Senior Notes due 2019. Schlumberger recorded a $417 million adjustment to increase the carrying amount of these notes to their estimated fair value. This adjustment will be amortized as a reduction of interest expense over the remaining term of the respective obligations.
(3)		In connection with the acquisition accounting, Schlumberger provided deferred taxes related to, among other items, the estimated fair value adjustments for acquired inventory, intangible assets and assumed debt obligations. Included in the provisions for deferred taxes are amounts relating to the outside basis difference associated with shares in certain Smith non-US subsidiaries for which no taxes have previously been provided. Schlumberger expects to reverse the outside basis difference primarily through the reorganization of those subsidiaries as well as through repatriating earnings in lieu of permanently reinvesting them. In this regard, Schlumberger is in the process of assessing certain factors that impact the ultimate amount of deferred taxes to be recorded. The amount of deferred taxes recorded will likely be revised after this assessment is completed. Any revision to the amount of deferred taxes recorded will impact the amount of goodwill recorded.


(4)		Prior to the completion of the merger, Smith and Schlumberger operated M-I SWACO, a drilling fluids joint venture that was 40% owned by Schlumberger and 60% owned by Smith. Effective at the closing of the merger, M-I SWACO is now owned 100% by Schlumberger. As a result of obtaining control of this joint venture, Schlumberger was required under generally accepted accounting principles to remeasure its previously held equity interest in the joint venture at its merger-date fair value and recognize the resulting pretax gain of $1.3 billion ($1.2 billion after-tax) in earnings. This gain is classified as Gain on Investment in M-I SWACO in the Consolidated Statement of Income.
		Prior to acquiring Smith, Schlumberger recorded income relating to this venture using the equity method of accounting. The carrying value of Schlumberger’s investment in the joint venture on December 31, 2009 was $1.4 billion, and was included within Investments in Affiliated Companies on the Consolidated Balance Sheet. Schlumberger’s equity income from this joint venture was $78 million in 2010 (representing the period from January 1, 2010 to August 27, 2010), $131 million in 2009 and $210 million in 2008. Schlumberger received cash distributions from the joint venture of $50 million in 2010, $106 million in 2009 and $57 million in 2008.
(5)		The goodwill recognized is primarily attributable to expected synergies that will result from combining the operations of Schlumberger and Smith as well as intangible assets that do not qualify for separate recognition. Approximately $0.2 billion of the goodwill is deductible for income tax purposes.

Preliminary Estimates of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed


(Stated in millions)
Cash	$	26
Other assets		184
Fixed assets		90
Goodwill		599
Intangible assets		377
Long-term debt		(145	)
Deferred tax liabilities		(64	)
Other liabilities		(152	)


	$	915

Consolidated Supplementary Pro Forma Statement of Operation


(Stated in millions, except per share data)
	2010		2009
Revenue	$	33,468	$	31,182
Net income	$	3,376	$	3,271
Net income attributable to Schlumberger	$	3,370	$	3,244
Diluted earnings per share	$	2.44	$	2.34

Charges and Credits Included in the Pro Forma Net Income Attributable to Schlumberger and Diluted Earnings Per Share

(Stated in millions, except per share data)

2010

2009

Diluted

Diluted

Net Income

EPS

Net Income

EPS

Impact

Impact *

Impact

Severance and other⁽¹⁾

0.06

0.06

Impairment relating to WesternGeco’s first generation Q-Land acquisition system⁽¹⁾

0.05

–

Other WesternGeco-related charges⁽¹⁾

0.05

–

Impact of elimination of tax deduction related to Medicare Part D subsidy⁽¹⁾

0.03

–

Mexico restructuring⁽¹⁾

0.03

–

Venezuelan currency-related losses⁽²⁾

0.03

–

Repurchase of bonds⁽¹⁾

0.03

–

Gain on remeasurement of investment in @Balance⁽²⁾

(18

)

(0.01

)

–

Postretirement benefits curtailment⁽¹⁾

–

122

0.09

Employee severance⁽²⁾

–

0.02

341

0.25

239

0.17


*		Does not add due to rounding


(1)		Relates to Schlumberger’s historical operations and is more fully described in Note 3 – Charges and Credits.
(2)		Relates to Smith’s historical operations.

Stock Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2010

Stock Compensation Plans (Tables) [Abstract]

Weighted-Average Assumptions


	2010			2009			2008

Dividend yield		1.3	%		1.2	%		1.0	%
Expected volatility		35	%		34	%		31	%
Risk free interest rate		2.9	%		2.2	%		3.2	%
Expected option life in years		6.9			6.9			7.0
Weighted-average fair value per share	$	24.13		$	13.92		$	29.33

Options outstanding and option exercisable


(Shares stated in thousands)
	OPTIONS OUTSTANDING						OPTIONS EXERCISABLE
			Weighted-
			average		Weighted-				Weighted-
			remaining		average				average
	Options		contractual life		exercise		Options		exercise
Exercise prices range	Outstanding		(in years)		price		Exercisable		price

$16.87-$32.46		5,281		1.78	$	27.41		5,281	$	27.41
$32.62-$37.85		6,907		7.50	$	37.25		1,887	$	35.65
$38.53-$55.69		7,714		5.83	$	52.60		6,197	$	53.25
$56.61-$74.00		12,289		8.03	$	64.86		2,546	$	60.96
$84.93-$110.78		5,308		7.05	$	88.57		2,083	$	89.33


		37,499		6.47	$	55.33		17,994	$	49.09

Stock Option Plans


(Shares stated in thousands)
	2010					2009					2008
				Weighted-					Weighted-					Weighted-
				average					average					average
				exercise					exercise					exercise
	Shares			price		Shares			price		Shares			price

Outstanding at beginning of year		35,500		$	50.30		32,301		$	50.36		35,719		$	41.02
Granted		8,283		$	66.67		7,981		$	40.87		5,422		$	84.95
Assumed in Smith transaction		581		$	28.77		–		$	–		–		$	–
Exercised		(5,962	)	$	37.60		(3,851	)	$	29.00		(5,444	)	$	32.69
Forfeited		(903	)	$	61.28		(931	)	$	58.82		(3,396	)	$	42.68


Outstanding at year-end		37,499		$	55.33		35,500		$	50.30		32,301		$	50.36

Restricted stock transactions


(Shares stated in thousands)
	2010					2009					2008
				Weighted					Weighted					Weighted
				Average					Average					Average
	Restricted			Grant Date		Restricted			Grant Date		Restricted			Grant Date
	Stock			Fair Value		Stock			Fair Value		Stock			Fair Value

Unvested at beginning of year		1,343			$62.75		1,701			$66.49		885			$65.14
Granted		1,261			65.79		304			48.14		863			68.04
Vested		(286	)		63.92		(580	)		65.15		(18	)		65.35
Forfeited		(95	)		64.16		(82	)		69.23		(29	)		72.44


Unvested at end of year		2,223			$64.27		1,343			$62.75		1,701			$66.49

Discounted Stock Purchase Plan Assumptions and Resulting Weighted Average Fair Value


	2010			2009			2008

Dividend yield		1.6	%		1.1	%		0.9	%
Expected volatility		36	%		44	%		34	%
Risk free interest rate		0.3	%		0.3	%		2.7	%
Weighted average fair value per share	$	10.30		$	9.76		$	17.21

Stock-based compensation expense recognized in income


(Stated in millions)
	2010		2009		2008

Stock options	$	121	$	118	$	111
Restricted stock		44		32		31
DSPP		33		36		30


	$	198	$	186	$	172

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income Taxes (Tables) [Abstract]

Income Tax Disclosure Table


(Stated in millions)
	2010		2009		2008

United States	$	638	$	86	$	1,432
Outside United States		4,518		3,848		5,420


	$	5,156	$	3,934	$	6,852

Components of Net Deferred Tax Assets


(Stated in millions)
	2010			2009

Postretirement benefits	$	327		$	447
Multiclient seismic data		43			104
Intangible assets		(1,674	)		(122	)
Investments in non-US subsidiaries		(353	)		–
Other, net		72			101


	$	(1,585	)	$	530

Components of Consolidated Income Taxes


(Stated in millions)
	2010			2009			2008

Current:
United States – Federal	$	76		$	(191	)	$	453
United States – State		14			(6	)		34
Outside United States		909			594			949


	$	999		$	397		$	1,436

Deferred:
United States – Federal	$	183		$	247		$	23
United States – State		2			13			1
Outside United States		(281	)		86			(12	)
Valuation allowance		(13	)		27			(18	)


	$	(109	)	$	373		$	(6	)


Consolidated taxes on income	$	890		$	770		$	1,430

Reconciliation of the US Statutory Federal Tax Rate


	2010			2009			2008

US statutory federal rate		35	%		35	%		35	%
US state income taxes		–			–			1
Non-US income taxed at different rates		(14	)		(16	)		(13	)
Effect of equity method investment		–			–			(1	)
Charges and Credits (See Note 3)		(3	)		1			–
Other		(1	)		–			(1	)


Effective income tax rate		17	%		20	%		21	%

Reconciliation of the liabilities associated with uncertain tax provisions


(Stated in millions)
	2010			2009			2008

Balance at beginning of year	$	1,026		$	877		$	858
Additions based on tax positions related to the current year		190			178			217
Additions for tax positions of prior years		8			36			19
Additions related to acquisitions		115			–			6
Impact of changes in exchange rates		(3	)		39			(72	)
Settlements with tax authorities		(36	)		(16	)		(20	)
Reductions for tax positions of prior years		(99	)		(68	)		(111	)
Reductions due to the lapse of the applicable statute of limitations		(36	)		(20	)		(20	)


Balance at end of year	$	1,165		$	1,026		$	877

Tax years subject to examination by the tax authorities


Brazil		2004 – 2010
Canada		2003 – 2010
Mexico		2005 – 2010
Norway		2003 – 2010
Russia		2007 – 2010
Saudi Arabia		2001 – 2010
United Kingdom		2008 – 2010
United States		2005 – 2010

Segment Information (Tables)

12 Months Ended

Dec. 31, 2010

Segment Information (Tables) [Abstract]

Financial Information


(Stated in millions)
	2010
			Income
			before					Depn. &		Capital
	Revenue		taxes			Assets		Amortn.		Expenditures

*OILFIELD SERVICES*
North America	$	5,010	$	802		$	2,725	$	412	$	451
Latin America		4,321		723			2,947		289		417
Europe/CIS/Africa		6,882		1,269			4,917		715		849
Middle East & Asia		5,586		1,696			3,509		517		597
Elims/Other⁽¹⁾		280		(15	)		1,639		31		131


		22,079		4,475			15,737		1,964		2,445


*WESTERNGECO*		1,987		267			2,896		579		276
*M-I SWACO*		1,568		197			2,786		43		80
*SMITH OILFIELD*		957		132			2,329		76		110
*DISTRIBUTION*		774		29			780		2		2
Goodwill and intangible assets							19,114
All other assets							1,580
Corporate⁽²⁾		82		(405	)		6,545		95		1
Interest income⁽³⁾				43
Interest expense⁽⁴⁾				(202	)
Charges & credits⁽⁵⁾				620


	$	27,447	$	5,156		$	51,767	$	2,759	$	2,914


(Stated in millions)
	2009
			Income
			before					Depn. &		Capital
	Revenue		taxes			Assets		Amortn.		Expenditures

*OILFIELD SERVICES*
North America	$	3,707	$	216		$	2,264	$	433	$	272
Latin America		4,225		753			3,117		261		393
Europe/CIS/Africa		7,150		1,707			4,603		653		824
Middle East & Asia		5,234		1,693			3,162		531		417
Elims/Other⁽¹⁾		202		(43	)		1,630		1		21


		20,518		4,326			14,776		1,879		1,927


*WESTERNGECO*		2,122		326			3,065		566		463
Goodwill and intangible assets							6,091
All other assets							1,873
Corporate⁽²⁾		62		(344	)		7,660		31		5
Interest income⁽³⁾				52
Interest expense⁽⁴⁾				(188	)
Charges & credits⁽⁵⁾				(238	)


	$	22,702	$	3,934		$	33,465	$	2,476	$	2,395


(Stated in millions)
	2008
			Income
			before					Depn. &			Capital
	Revenue		taxes			Assets		Amortn.			Expenditures

*OILFIELD SERVICES*
North America	$	5,914	$	1,371		$	2,728	$	433		$	750
Latin America		4,230		858			2,529		223			414
Europe/CIS/Africa		8,180		2,244			4,410		600			988
Middle East & Asia		5,724		2,005			3,503		496			762
Elims/Other⁽¹⁾		234		27			2,014		(9	)		128


		24,282		6,505			15,184		1,743			3,042


*WESTERNGECO*		2,838		836			2,956		518			680
Goodwill and intangible assets							6,009
All other assets							1,914
Corporate⁽²⁾		43		(268	)		6,031		8			1
Interest income⁽³⁾				112
Interest expense⁽⁴⁾				(217	)
Charges & credits⁽⁵⁾				(116	)


	$	27,163	$	6,852		$	32,094	$	2,269		$	3,723


(1)		Includes certain headquarter administrative costs which are not allocated geographically, manufacturing and certain other operations, and other cost and income items maintained at the Oilfield Services level.

(2)		Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with intangible assets recorded as a result of the merger with Smith and certain other nonoperating items. Corporate assets consist of cash, short-term investments, fixed income investments, held to maturity and investments in affiliates.

(3)		Interest income excludes amounts which are included in the segments’ income (2010 - $7 million: 2009 – $10 million; 2008 – $7 million).

(4)		Interest expense excludes amounts which are included in the segments’ income (2010 - $5 million; 2009 – $33 million; 2008 – $30 million).

(5)		See Note 3 – Charges and Credits.

Pension and Other Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2010

Pension And Other Benefits Plans (Tables) [Abstract]

The weighted-average assumed discount rate, compensation increases and the expected long-term rate of return on plan assets used to determine the net pension cost for the US and International plans


	US									International
	2010			2009			2008			2010			2009			2008

Discount rate		6.00	%		6.94	%		6.50	%		5.89	%		6.81	%		5.80	%
Compensation increases		4.00	%		4.00	%		4.00	%		4.93	%		4.93	%		4.90	%
Return on plan assets		8.50	%		8.50	%		8.50	%		8.00	%		8.00	%		8.00	%

Net pension cost for the Schlumberger pension plans


(Stated in millions)
	US									International
	2010			2009			2008			2010			2009			2008

Service cost – benefits earned during the period	$	56		$	52		$	56		$	51		$	67		$	33
Interest cost on projected benefit obligation		142			143			130			208			189			58
Expected return on plan assets		(191	)		(166	)		(162	)		(228	)		(181	)		(75	)
Amortization of net loss		60			29			13			19			–			11
Amortization of prior service cost		4			5			7			113			117			1


		71			63			44			163			192			28
Curtailment charge		–			32			–			–			98			–


	$	71		$	95		$	44		$	163		$	290		$	28

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans


	US						International
	2010			2009			2010			2009

Discount rate		5.50	%		6.00	%		5.47	%		5.89	%
Compensation increases		4.00	%		4.00	%		4.91	%		4.93	%

Changes in the projected benefit obligation, plan assets and funded status of the plans


(Stated in millions)
	US						International
	2010			2009			2010			2009

*Change in Projected Benefit Obligations*
Projected benefit obligation at beginning of year	$	2,439		$	2,150		$	3,518		$	2,767
Service cost		56			52			51			67
Interest cost		142			143			208			189
Contributions by plan participants		–			–			76			61
Actuarial losses		172			191			310			449
Currency effect		–			–			(28	)		69
Benefits paid		(122	)		(110	)		(121	)		(97	)
Plan amendments		82			–			74			16
Impact of curtailment		–			13			–			(3	)


Projected benefit obligation at end of year	$	2,769		$	2,439		$	4,088		$	3,518

*Change in Plan Assets*
Plan assets at fair value at beginning of year	$	2,254		$	1,490		$	2,976		$	1,913
Actual return on plan assets		316			358			426			444
Currency effect		–			–			(26	)		69
Company contributions		187			516			433			586
Contributions by plan participants		–			–			76			61
Benefits paid		(122	)		(110	)		(121	)		(97	)


Plan assets at fair value at end of year	$	2,635		$	2,254		$	3,764		$	2,976

*Unfunded Liability*	$	(134	)	$	(185	)	$	(324	)	$	(542	)

*Amounts Recognized in Balance Sheet*
Postretirement Benefits	$	(134	)	$	(185	)	$	(367	)	$	(542	)
Other Assets		–			–			43			–


	$	(134	)	$	(185	)	$	(324	)	$	(542	)

*Amounts Recognized in Accumulated Other Comprehensive Income*
Actuarial losses	$	819		$	833		$	447		$	335
Prior service cost		114			36			840			881


	$	933		$	869		$	1,287		$	1,216

Accumulated benefit obligation	$	2,568		$	2,226		$	3,785		$	3,257

The weighted-average allocation of plan assets and the target allocation by asset category


	US									International
	Target			2010			2009			Target			2010			2009

Equity securities		50 – 60	%		52	%		48	%		55 – 70	%		61	%		59	%
Debt securities		28 – 38			40			38			20 – 35			31			32
Cash and cash equivalents		–			2			8			–			3			4
Other investments		0 – 12			6			6			0 – 10			5			5


		100	%		100	%		100	%		100	%		100	%		100	%

The fair value of Schlumberger's pension plan assets


(Stated in millions)
	US Plan Assets
	2010								2009
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three

Asset Category:
Cash and Cash Equivalents	$	67	$	35	$	32	$	–	$	191	$	191	$	–	$	–
Equity Securities:
US^(a)		885		885						710		710
International^(b)		473		370		103				355		280		75
Debt securities:
Corporate bonds^(c)		220				220				193				193
Government and government-related debt securities^(d)		554		148		406				462		161		301
Government agency collateralized mortgage obligations and mortgage backed securities^(e)		201				201				136				136
Other collateralized mortgage obligations and mortgage-backed securities^(f)		67				67				71				71
Other Investments:
Private equity^(g)		128						128		99						99
Real estate^(h)		40						40		37						37


Total	$	2,635	$	1,438	$	1,029	$	168	$	2,254	$	1,342	$	776	$	136


(Stated in millions)
	International Plan Assets
	2010								2009
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three

Asset Category:
Cash and Cash Equivalents	$	106	$	106	$	–	$	–	$	111	$	111	$	–	$	–
Equity Securities:
US^(a)		1,268		1,268						1,113		1,113
International^(b)		1,031		1,031						643		643
Debt securities:
Corporate bonds^(c)		289		15		274				257		11		246
Government and government-related^(d)		693		522		171				492		378		114
Government agency collateralized mortgage obligations and mortgage backed securities^(e)		125		44		81				137		20		117
Other collateralized mortgage obligations and mortgage-backed securities^(f)		74				74				70				70
Other Investments:
Private equity^(g)		114						114		87						87
Real estate^(h)		64						64		66						66


Total	$	3,764	$	2,986	$	600	$	178	$	2,976	$	2,276	$	547	$	153


(a)		US equities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.
(b)		International equities are invested in companies that are traded on exchanges outside the US and are well diversified by industry sector, country and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets with a small percentage in emerging markets.
(c)		Corporate bonds consist primarily of investment grade bonds from diversified industries.
(d)		Government and government-related debt securities are comprised primarily of inflation protected US treasuries and, to a lesser extent, other government-related securities.
(e)		Government agency collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by governmental and quasi-governmental entities.
(f)		Other collateralized mortgage obligations and mortgage-backed securities are debt obligations that represent claims to the cash flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by private entities.
(g)		Private equity includes investments in several fund of funds limited partnerships.

(h)		Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.

Defined benefit plan weighted average assumptions used in calculating benefit obligation and net periodic benefit cost for the postretirement medical plan


	Benefit Obligation						Net Periodic Benefit Cost
	at December 31,						for the year
	2010			2009			2010			2009			2008

Discount rate		5.50	%		6.00	%		6.00	%		6.94	%		6.50	%
Return on plan assets		–			–			8.00	%		8.00	%		8.00	%
Current medical cost trend rate		8.00	%		8.00	%		8.00	%		8.00	%		9.00	%
Ultimate medical cost trend rate		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2017			2016			2016			2015			2012

Net periodic benefit cost for the Schlumberger US postretirement medical plan


(Stated in millions)
	2010			2009			2008

Service cost – benefits earned during the period	$	23		$	19		$	23
Interest cost on projected benefit obligation		58			56			52
Expected return on plan assets		(6	)		(2	)		(3	)
Amortization of prior service credit		(21	)		(25	)		(27	)
Amortization of net loss		11			3			10


		65			51			55
Curtailment charge		–			6			–


	$	65		$	57		$	55

The changes in the accumulated postretirement benefit obligation, plan assets and funded status


(Stated in millions)
	2010			2009

*Change in Accumulated Postretirement Benefit Obligation*
Benefit obligation at beginning of year	$	991		$	862
Service cost		23			19
Interest cost		58			56
Contributions by plan participants		4			5
Actuarial losses		8			67
Benefits paid		(33	)		(31	)
Impact of curtailment		–			13


Benefit obligation at end of year	$	1,051		$	991

*Change in Plan Assets*
Plan assets at fair value at beginning of year	$	58		$	29
Company contributions		248			47
Contributions by plan participants		5			5
Benefits paid		(33	)		(31	)
Actual return on plan assets		12			8


Plan assets at fair value at end of year	$	290		$	58

*Unfunded Liability*	$	(761	)	$	(933	)

*Amounts Recognized in Accumulated*
*Other Comprehensive Income*
Actuarial losses	$	212		$	223
Prior service cost		(35	)		(56	)


	$	177		$	167

Effect of one percentage point change in assumed health care cost trend rates


(Stated in millions)
	One percentage		One percentage
	point increase		point decrease

Effect on total service and interest cost components	$	15	$	(12	)
Effect on accumulated postretirement benefit obligation	$	177	$	(145	)

The expected benefits to be paid under the US and International pension plans and the postretirement medical plan


(Stated in millions)
	Pension Benefits				Postretirement
	US		International		Medical Plan

2011	$	125	$	134	$	40
2012		129		146		43
2013		134		158		46
2014		139		170		50
2015		145		182		53
2016- 2020		856		1,083		312

Defined Benefit Plan, Amounts that will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year


(Stated in millions)
			Postretirement
	Pension		Medical
	Plans		Plan

Net actuarial losses	$	89	$	11
Prior service cost/(credit)	$	132	$	(12	)

Summary of Accounting Policies (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2009 USD ($) $ / shares shares	Dec. 31, 2008 USD ($) $ / shares shares
Schlumberger amounts attributable to:
Basic	$ 4,267	$ 3,156	$ 5,397
Assumed conversion of debentures	3	8	12
Diluted	$ 4,270	$ 3,164	$ 5,409
Average shares outstanding
Basic \| shares	1,250.0	1,198.0	1,196.0
Assumed conversion of debentures \| shares	2.0	8.0	13.0
Assumed exercise of stock options \| shares	9.0	7.0	13.0
Unvested restricted stock \| shares	2.0	1.0	2.0
Assuming dilution \| shares	1,263.0	1,214.0	1,224.0
Earnings per Share
Basic \| $ / shares	$ 3.41	$ 2.63	$ 4.51
Diluted \| $ / shares	$ 3.38	$ 2.61	$ 4.42
Summary of Accounting Policies (Textuals) [Abstract]
Transaction gains (losses), net of hedging activities	$ (27)	$ 73	$ 8
Trading investment	189	184
Fixed income investments, held to maturity	484	$ 738
Maturities of fixed income investments, 2012	289
Maturities of fixed income investments, 2013	80
Maturities of fixed income investments, 2014	$ 115
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Useful life of intangible asset, minimum	7
Useful life of intangible asset, maximum	28
Technology/Technical Know-How [Member]
Finite Lived Intangible Assets [Line Items]
Useful life of intangible asset, minimum	5
Useful life of intangible asset, maximum	18
Tradename [Member]
Finite Lived Intangible Assets [Line Items]
Useful life of intangible asset, minimum	5
Useful life of intangible asset, maximum	30
Outstanding Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Employee stock options to purchase \| shares	12.5	17.1	5.8

Charges and Credits (Details 1) - USD ($) $ in Millions	3 Months Ended					9 Months Ended		12 Months Ended
Charges and Credits (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Sep. 30, 2010	Mar. 31, 2010	Jun. 30, 2009	Dec. 31, 2008	Sep. 30, 2010	Sep. 30, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of charges and credit
Charges, pretax				$ 238	$ 116	$ 90		$ 32	$ 238	$ 116
Charges, tax				31	17
Charges, net of tax				207	93	77		20
Asset Impairment Charges								71
Equity Method Investment, Other than Temporary Impairment		$ 30
Repurchase Senior Notes		$ 352
Payments of Merger Related Costs, Financing Activities			$ 165
Noncontrolling interests	$ 218							218	$ 109
Noncash Merger Related Costs							$ 649
Gain on Purchase of Business [Member]
Summary of charges and credit
Charges, pretax								(1,270)
Charges, tax								(32)
Charges, net of tax								(1,238)
Merger Related Employee Benefits [Member]
Summary of charges and credit
Charges, pretax	16							58
Charges, tax								10
Charges, net of tax	12							48
Inventory Fair Value Adjustments [Member]
Summary of charges and credit
Charges, pretax	115							153
Charges, tax								56
Charges, net of tax	73							97
Professional Fees [Member]
Summary of charges and credit
Charges, pretax	17							107
Charges, tax								1
Charges, net of tax	$ 16							106
Restructuring Charges [Member]
Summary of charges and credit
Charges, pretax								649
Charges, tax								114
Charges, net of tax								535
Other Charges on Restructuring [Member]
Summary of charges and credit
Charges, pretax								63
Charges, net of tax								63
Mexico Restructuring Charges [Member]
Summary of charges and credit
Charges, pretax								40
Charges, tax								4
Charges, net of tax								36
Repurchase of Bonds [Member]
Summary of charges and credit
Charges, pretax								60
Charges, tax								23
Charges, net of tax								37
Impairment in value of asset [Member]
Summary of charges and credit
Charges, pretax								78
Charges, tax								7
Charges, net of tax								71
Acquisition [Member]
Summary of charges and credit
Charges, pretax								(621)
Charges, tax								42
Charges, net of tax								(663)
Employee Severance [Member]
Summary of charges and credit
Charges, pretax				102	74			90
Charges, tax				17	9			13
Charges, net of tax				$ 85	$ 65			77
Medicare Part D Subsidy [Member]
Summary of charges and credit
Charges, tax								(40)
Charges, net of tax								$ (40)
WesternGeco first Generation Land Operation [Member]
Summary of charges and credit
Impairment Charges						78
Asset Impairment Charges						$ 71

Acquisitions (Details) $ in Millions	8 Months Ended	12 Months Ended
Acquisitions (Details) $ in Millions	Aug. 27, 2010 USD ($) shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008 USD ($)
Fair Value of the Consideration Transferred to Effect the Merger With Smith
Number of shares of Smith common stock outstanding as of the acquisition date \| shares	248,000,000	1,361,171,428	1,194,812,901
Number of Smith unvested restricted stock units outstanding as of the acquisition date \| shares	4,000,000
Total number of shares outstanding as of the acquisition date \| shares	252,000,000
Multiplied by the exchange ratio	0.6966
Equivalent Schlumberger shares of common stock issued \| shares	176,000,000	176,000,000
Schlumberger closing stock price	55.76
Common stock equity consideration \| $	$ 9,812
Fair value of Schlumberger equivalent stock options issued \| $	16
Total fair value of consideration transferred \| $	9,828
Fair Value of the Consideration Transferred to Effect the Merger With Smith (Textuals) [Abstract]
Under merger agreement, shares of Schlumberger in exchange for each Smith share \| shares		0.6966
Smith stock options converted to Schlumberger stock options \| shares		600,000
Carrying value of investment in joint venture \| $			$ 1,400
Equity income from joint venture \| $	$ 78		131	$ 210
Cash distribution from joint ventures \| $		$ 50	$ 106	$ 57

Acquisitions (Details 1) $ in Millions	12 Months Ended
Acquisitions (Details 1) $ in Millions	Dec. 31, 2010 USD ($)
Business Combination, Preliminary Allocation of the Purchase Price Disclosure
Cash	$ 399
Accounts receivable	1,831
Inventory	2,013
Fixed assets	2,017
Other assets	429
Accounts payable and accrued liabilities	(1,460)
Long-term debt	(2,141)
Deferred taxes	(1,936)
Other liabilities	(528)
sub-total	4,714
Investment in M-I SWACO	(1,429)
Noncontrolling interests	(111)
Total identifiable net assets	3,174
Gain on investment in M-I SWACO	(1,238)
Goodwill	7,892
Total consideration transferred	$ 9,828
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
weighted-average life in years	12
Acquired inventory write up	$ 155
Increase (decrease) in notes payable	$ 417
Ownership interest in joint venture	100.00%
Gain on earnings on equity interest in joint venture pretax	$ 1,300
Gain on earnings on equity interest in joint venture after tax	1,200
Goodwill deductible for income tax purposes	200
Tradename [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure
Intangible assets	$ 1,560
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
weighted-average life in years	25
Technology Equipment [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure
Intangible assets	$ 1,170
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
weighted-average life in years	16
Customer Relationships [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure
Intangible assets	$ 1,360
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
weighted-average life in years	23
6.75% Senior Notes due 2011 [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Long-term fixed rate notes	$ 220
Notes stated percentage	6.75%
Notes maturity date	Dec. 31, 2011
8.625% Senior Notes due 2014 [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Long-term fixed rate notes	$ 300
Notes stated percentage	8.625%
Notes maturity date	Dec. 31, 2014
6.00% Senior Notes due 2016 [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Long-term fixed rate notes	$ 275
Notes stated percentage	6.00%
Notes maturity date	Dec. 31, 2016
9.75% Senior Notes due 2019 [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Long-term fixed rate notes	$ 700
Notes stated percentage	9.75%
Notes maturity date	Dec. 31, 2019
Smith International Incorporated [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Ownership interest in joint venture	60.00%
Parent Company [Member]
Business Combination, Preliminary Allocation of the Purchase Price Disclosure (Textuals) [Abstract]
Ownership interest in joint venture	40.00%

Acquisitions (Details 2) $ in Millions	Dec. 31, 2010 USD ($)	Apr. 23, 2010 USD ($)
Preliminary Estimates of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash	$ 399
Fixed assets	2,017
Goodwill	7,892
Long-term debt	2,141
Other liabilities	$ 528
Geoservices [Member]
Preliminary Estimates of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Cash		$ 26
Other assets		184
Fixed assets		90
Goodwill		599
Intangible assets		377
Long-term debt		(145)
Deferred tax liabilities		(64)
Other liabilities		(152)
Purchase price		$ 915
Preliminary Estimates of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Textuals) [Abstract]
Intangible assets amortized over a weighted average period		17

Acquisitions (Details 4) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Charges and Credits Included in the Pro Forma Net Income Attributable to Schlumberger and Diluted Earnings Per Share
Severance and other	$ 77	$ 85
Impairment relating to WesternGeco's first generation Q-Land acquisition system	71
Other Charges	63
Impact of elimination of tax deduction related to Medicare Part D subsidy	40
Mexico restructuring	36
Venezuelan currency-related losses	35
Gain Loss On Repurchase Of Bond	37
Gain on remeasurement of investment in @Balance	(18)
Postretirment benefits curtailment		122
Employee severance		32
Net impact on Income	$ 341	$ 239
Severance and other, Dilutive	$ 0.06	$ 0.06
Impairment relating to WesternGeco's first generation Q-Land acquisition system, Dilutive	0.05
Other WesternGeco-related charges, Dilutive	0.05
Impact of elimination of tax deduction related to Medicare Part D subsidy, Dilutive	0.03
Mexico restructuring, Dilutive	0.03
Venezuelan currency-related losses, Dilutive	0.03
Repurchase of bonds, Dilutive	0.03
Gain on remeasurement of investment in @Balance, Dilutive	(0.01)
Postretirment benefits curtailment, Dilutive		0.09
Employee severance, Dilutive		0.02
Net Dilutive impact on EPS	$ 0.25	$ 0.17

Fixed Assets (Details) $ in Millions	12 Months Ended
Fixed Assets (Details) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Property, Plant and Equipment
Land	$ 314	$ 141
Building & improvements	2,631	1,806
Machinery & equipment	21,873	17,939
Seismic vessels and related equipment	1,861	924
Seismic vessels under construction		695
Property, plant & equipment	26,679	21,505
Less: Accumulated depreciation	14,608	11,845
Fixed assets less accumulated depreciation	$ 12,071	$ 9,660
Building and Building Improvements [Member]
Fixed Assets (Textual) [Abstract]
Minimum useful life	30
Maximum useful life	40
Machinery and Equipment [Member]
Fixed Assets (Textual) [Abstract]
Minimum useful life	5
Maximum useful life	10
Seismic vessels [Member]
Fixed Assets (Textual) [Abstract]
Minimum useful life	20
Maximum useful life	30

Long-term Debt and Debt Facility Agreements (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Summary of Other Long-Term Debt
Long-term debt, carrying amount	$ 5,504	$ 4,354
Fair value adjustment-hedging	13	1
Other Long-term Debt, Noncurrent, Total	5,517	4,355
4.50% Guaranteed Notes due 2014 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	1,319	1,449
2.75% Guranteed Notes due 2015 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	1,310
5.25% Guaranteed Notes due 2013 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	659	727
9.75% Senior Notes due 2019 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	776
3.00% Guaranteed Notes due 2013 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	450	449
8.625% Senior Notes due 2014 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	272
6.00% Senior Notes due 2016 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	218
6.50% Notes due 2012 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount		649
5.875% Guaranteed Bonds due 2011 [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount		362
Commercial Paper [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	367	358
Other Long-term Debt, Noncurrent, Total	367	358
Debt, Other [Member]
Summary of Other Long-Term Debt
Long-term debt, carrying amount	133	360
Other Long-term Debt, Noncurrent, Total	$ 133	$ 360

Long-term Debt and Debt Facility Agreements (Details Textuals) € in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2003 USD ($) shares	Dec. 31, 2010 USD ($)	Sep. 30, 2010 USD ($)	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($) shares	Dec. 31, 2010 EUR (€)	Dec. 31, 2010 USD ($)	Sep. 30, 2009 USD ($)	Mar. 31, 2009 EUR (€)	Mar. 31, 2009 USD ($)	Sep. 30, 2008 EUR (€)
Debt Instrument [Line Items]
Repayment of long-term debt				$ 1,814,000,000	$ 1,754,000,000	$ 601,000,000
Committed debt facility agreements, aggregated					6,000,000,000
Commercial paper borrowings					444,000,000			$ 2,214,000,000
Long-term Debt (Textuals) [Abstract]
Weighted average interest rate on variable rate debt							1.70%	1.70%
Unused committed debt credit facilities					3,700,000,000
Long term debt, maturity in 2012								$ 445,000,000
Long term debt, maturity in 2013								1,163,000,000
Long term debt, maturity in 2014								1,605,000,000
Long term debt, maturity in 2015								1,310,000,000
Long term debt, maturity after 2015								994,000,000
Long-term debt, fair value					4,600,000,000			$ 5,600,000,000
2.125% series B convertible debentures due June 1, 2023, outstanding					321,000,000
Debentures converted into common shares				320,000,000
Debentures redeemed for cash				$ 1,000,000
Shares of common stock converted from debentures \| shares				8,000,000
6.50% Notes due 2012 [Member]
Debt Instrument [Line Items]
Repayment of long-term debt		$ 650,000,000	$ 650,000,000
Euro medium term note program									$ 650,000,000
2.75% Guranteed Notes due 2015 [Member]
Debt Instrument [Line Items]
Euro medium term note program \| €							€ 1,000
Percentage interest on swap of guaranteed notes								2.56%
Euro medium term note program [Member]
Debt Instrument [Line Items]
Euro medium term note program \| €										€ 3,000
Commercial Paper [Member]
Debt Instrument [Line Items]
Unused committed credit facilities maturity				more than one year
Committed debt facility agreements, aggregated					$ 4,900,000,000
Notes maturity date					Apr. 12, 2011
Commercial paper borrowings					$ 400,000,000			$ 1,900,000,000
2.125% Series B Convertible Debentures due June 1, 2023
Debt Instrument [Line Items]
Euro medium term note program	$ 450,000,000
Convertible no shares per conversion rate \| shares	25
Principal amount of convertible debentures	$ 1,000
Per share conversion rate	40
Value of convertible debentures converted into common shares						$ 95,000,000
Number of common shares issued upon conversion of convertible debentures \| shares						2,400,000
4.50% Guaranteed Notes due 2014 [Member]
Debt Instrument [Line Items]
Euro medium term note program											$ 1,000,000,000
Percentage interest on swap of guaranteed notes										4.95%	4.95%
3.00% Guaranteed Notes due 2013 [Member]
Debt Instrument [Line Items]
Euro medium term note program									$ 450,000,000
5.25% Guaranteed Notes due 2013 [Member]
Debt Instrument [Line Items]
Euro medium term note program \| €												€ 500
Percentage interest on swap of guaranteed notes												4.74%
1.5% series A convertible debentures due June 1, 2023
Debt Instrument [Line Items]
Euro medium term note program	$ 975,000,000
Convertible no shares per conversion rate \| shares	27.651
Principal amount of convertible debentures	$ 1,000
Per share conversion rate	$ 36.165
Value of convertible debentures converted into common shares						$ 353,000,000
Number of common shares issued upon conversion of convertible debentures \| shares						9,800,000

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	$ 55	$ 230
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	21	40
Derivative Asset, Fair Value, total	76	270
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	93	66
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges	14	28
Derivative Liability, Fair Value, Total	107	94
Foreign Exchange Contract [Member] \| Other Current Assets [Member]
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	4	14
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	9	11
Foreign Exchange Contract [Member] \| Other Assets [Member]
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	37	216
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	9	28
Foreign Exchange Contract [Member] \| Accounts Payable and Accrued Liabilities [Member]
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	9	15
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges	14
Foreign Exchange Contract [Member] \| Other Liabilities [Member]
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	77	51
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges		25
Interest Rate Contract [Member] \| Other Assets [Member]
Derivative designated as hedges:
Fair value of derivatives assets designated as hedges	14
Interest Rate Contract [Member] \| Accounts Payable and Accrued Liabilities [Member]
Derivative designated as hedges:
Fair value of derivatives liabilities designated as hedges	7
Commodity Contract [Member] \| Other Current Assets [Member]
Derivative not designated as hedges:
Fair value of derivatives assets not designated as hedges	$ 3	1
Commodity Contract [Member] \| Accounts Payable and Accrued Liabilities [Member]
Derivative not designated as hedges:
Fair value of derivatives liabilities not designated as hedges		$ 3

Derivative Instruments and Hedging Activities (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Commodity Contract [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Commodity forward contract outstanding	$ 12
Fair Value Hedging [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	14	$ 111
Fair Value Hedging [Member] \| Foreign Exchange Contract [Member] \| Cost of Sales [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	(8)	105
Fair Value Hedging [Member] \| Interest Rate Contract [Member] \| Interest Expense [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	22	6
Nondesignated [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	(12)	34
Nondesignated [Member] \| Foreign Exchange Contract [Member] \| Cost of Sales [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	(13)	32
Nondesignated [Member] \| Commodity Contract [Member] \| Cost of Sales [Member]
Effect of derivative instruments designated as fair value hedges and not designated as hedges on the consolidated statement of income
Gain/(loss) recognized in income	$ 1	$ 2

Derivative Instruments and Hedging Activities (Details Textuals) $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($)	Sep. 30, 2009 USD ($)
Derivative Instruments and Hedging Activities (Textuals) [Abstract]
Number of countries in which Schlumberger conducts business	80
Percentage of revenue denominated in US dollar	80.00%
Recognized a cumulative net gain in Equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges	$ 45
Contracts outstanding in various foreign currencies (US dollar equivalent)	7,300
Fixed rate debt aggregate, after taking into account the effects of the interest rate swaps	4,900
Variable rate debt aggregate, after taking into account the effects of the interest rate swaps	3,200
Short-term investments and Fixed income investments, held to maturity	2,100
6.50% Notes due 2012 [Member]
Derivative [Line Items]
Notional amount of interest rate swap		$ 600
Notes relating to interest rate swap		$ 650
Repurchase of interest rate derivative	$ 10
6.50% Notes due 2012 [Member] \| Fixed Rate Debt [Member]
Derivative [Line Items]
Derivative swap interest rate		6.50%
6.50% Notes due 2012 [Member] \| Floating Rate Debt [Member]
Derivative [Line Items]
Derivative swap interest rate		4.84%
3.00% Guaranteed Notes due 2013 [Member]
Derivative [Line Items]
Notional amount of interest rate swap		$ 450
Notes relating to interest rate swap		$ 450
3.00% Guaranteed Notes due 2013 [Member] \| Fixed Rate Debt [Member]
Derivative [Line Items]
Derivative swap interest rate		3.00%
3.00% Guaranteed Notes due 2013 [Member] \| Floating Rate Debt [Member]
Derivative [Line Items]
Derivative swap interest rate		0.765%

Stockholder's Equity (Details) - USD ($)	12 Months Ended
Stockholder's Equity (Details) - USD ($)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Aug. 27, 2010
Reconciliation of accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	$ (2,674,000,000)	$ (2,901,000,000)	$ (1,173,000,000)
Currency translation adjustments	(26,000,000)	17,000,000	(82,000,000)
Changes in fair value of derivatives	5,000,000	143,000,000	(135,000,000)
Amortization of prior service cost	96,000,000	97,000,000	(20,000,000)
Amortization of actuarial net loss	90,000,000	32,000,000	34,000,000
Impact of curtailment		96,000,000
Unrecognized prior service cost arising in the year	162,000,000	27,000,000	(1,077,000,000)
Actuarial net gains/losses arising in the year	117,000,000	(237,000,000)	(725,000,000)
Deferred Taxes	20,000,000	52,000,000	277,000,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ (2,768,000,000)	$ (2,674,000,000)	(2,901,000,000)
Stockholder's Equity (Textuals) [Abstract]
Common Stock, Shares Authorized	3,000,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01
Common Stock, Shares, Outstanding	1,361,171,428	1,194,812,901		248,000,000
Authorization to issue preferred stock	200,000,000
Preferred stock, par value	$ 0.01
Curreny Translation Adjustments [Member]
Reconciliation of accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	(886,000,000)	$ (903,000,000)	(821,000,000)
Currency translation adjustments	(26,000,000)	17,000,000	(82,000,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	(912,000,000)	(886,000,000)	(903,000,000)
Fair Value of Derivatives [Member]
Reconciliation of accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	40,000,000	(103,000,000)	32,000,000
Changes in fair value of derivatives	5,000,000	143,000,000	(135,000,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	45,000,000	40,000,000	(103,000,000)
Deferred Employee Benefits Liabilities [Member]
Reconciliation of accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	(1,828,000,000)	(1,895,000,000)	(384,000,000)
Amortization of prior service cost	96,000,000	97,000,000	(20,000,000)
Amortization of actuarial net loss	90,000,000	32,000,000	34,000,000
Impact of curtailment		96,000,000
Unrecognized prior service cost arising in the year	(162,000,000)	27,000,000	(1,077,000,000)
Actuarial net gains/losses arising in the year	(117,000,000)	(237,000,000)	(725,000,000)
Deferred Taxes	20,000,000	52,000,000	277,000,000
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ (1,901,000,000)	$ (1,828,000,000)	$ (1,895,000,000)

Stock Compensation Plans (Details) - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Weighted-Average Assumptions
Dividend yield	1.30%	1.20%	1.00%
Expected volatility	35.00%	34.00%	31.00%
Risk free interest rate	2.90%	2.20%	3.20%
Expected options life in years	6.9	6.9	7.0
weighted-average fair value per share	$ 24.13	$ 13.92	$ 29.33
Options outstanding and option exercisable
Option outstanding	37,499
Weighted average remaining contractual life (in years)	6.47
Weighted average exercise price	$ 55.33
Option exercisable	17,994
Weighted average exercise price	$ 49.09
Exercise prices range $16.87 - $32.46 [Member]
Options outstanding and option exercisable
Exercise prices minimum Range	16.87
Exercise prices maximum Range	$ 32.46
Option outstanding	5,281
Weighted average remaining contractual life (in years)	1.78
Weighted average exercise price	$ 27.41
Option exercisable	5,281
Weighted average exercise price	$ 27.41
Exercise prices range $32.62 - $37.85 [Member]
Options outstanding and option exercisable
Exercise prices minimum Range	32.62
Exercise prices maximum Range	$ 37.85
Option outstanding	6,907
Weighted average remaining contractual life (in years)	7.50
Weighted average exercise price	$ 37.25
Option exercisable	1,887
Weighted average exercise price	$ 35.65
Exercise prices range $38.53 - $55.69 [Member]
Options outstanding and option exercisable
Exercise prices minimum Range	38.53
Exercise prices maximum Range	$ 55.69
Option outstanding	7,714
Weighted average remaining contractual life (in years)	5.83
Weighted average exercise price	$ 52.60
Option exercisable	6,197
Weighted average exercise price	$ 53.25
Exercise prices range $56.61 - $74.00 [Member]
Options outstanding and option exercisable
Exercise prices minimum Range	56.61
Exercise prices maximum Range	$ 74.00
Option outstanding	12,289
Weighted average remaining contractual life (in years)	8.03
Weighted average exercise price	$ 64.86
Option exercisable	2,546
Weighted average exercise price	$ 60.96
Exercise prices range $84.93 - $110.78 [Member]
Options outstanding and option exercisable
Exercise prices minimum Range	84.93
Exercise prices maximum Range	$ 110.78
Option outstanding	5,308
Weighted average remaining contractual life (in years)	7.05
Weighted average exercise price	$ 88.57
Option exercisable	2,083
Weighted average exercise price	$ 89.33

Stock Compensation Plans (Details 1) shares in Thousands	12 Months Ended
Stock Compensation Plans (Details 1) shares in Thousands	Dec. 31, 2010 shares USD ($)	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008 USD ($) shares
Stock Option Activity
Beginning of Period, Weighted Average Exercise Price	$ 50.3	$ 50.36	$ 41.02
Beginning Balance, shares \| shares	35,500	32,301	35,719
Granted, Weighted Average Exercise Price	$ 66.67	$ 40.87	$ 84.95
Granted, shares \| shares	8,283	7,981	5,422
Assumed In Merger Transaction, Weighted Average Exercise Price	$ 28.77
Assumed in Smith transaction, shares \| shares	581
Exercised, Weighted Average Exercise Price	$ 37.6	$ 29.00	$ 32.69
Exercised, shares \| shares	(5,962)	(3,851)	(5,444)
Forfeited, Weighted Average Exercise Price	$ 61.28	$ 58.82	$ 42.68
Forfeited, shares \| shares	(903)	(931)	(3,396)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 50.3	$ 50.36	$ 41.02
End of Period, Weighted Average Exercise Price	$ 55.33	$ 50.3	$ 50.36
Ending Balance, shares \| shares	37,499	35,500	32,301

Stock Compensation Plans (Details 2) - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Restricted stock transactions
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number				885
Restricted Stock [Member]
Restricted stock transactions
Unvested at beginning of year, Weighted Aversge Grant date Fair Value	$ 62.75	$ 66.49	$ 65.14
Granted, Weighted Average Grant Date Fair Value	$ 65.79	$ 48.14	$ 68.04
Granted, Restricted Stock	1,261	304	863
Vested, Weighted Average Grant Date Fair Value	$ 63.92	$ 65.15	$ 65.35
Vested, Restricted Stock	(286)	(580)	(18)
Forfeited, Weighted Average Grant Date Fair Value	$ 64.16	$ 69.23	$ 72.44
Forfeited, Restricted Stock	(95)	(82)	(29)
Unvested at end of year, Weighted Aversge Grant date Fair Value	$ 64.27	$ 62.75	$ 66.49
Unvested at end of year, Restricted Stock	2,223	1,343	1,701
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,223	1,343	1,701

Stock Compensation Plans (Details 3) - USD ($)	12 Months Ended
Stock Compensation Plans (Details 3) - USD ($)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Discounted Stock Purchase Plan Assumptions And Resulting Weighted Average Fair Value
Dividend yield	1.30%	1.20%	1.00%
Expected volatility	35.00%	34.00%	31.00%
Risk free interest rate	2.90%	2.20%	3.20%
weighted-average fair value per share	$ 24.13	$ 13.92	$ 29.33
Stock Compensation Plans
Stock-based compensation expense	$ 198,000,000	$ 186,000,000	$ 172,000,000
Discounted Stock Purchase Plan [Member]
Discounted Stock Purchase Plan Assumptions And Resulting Weighted Average Fair Value
Dividend yield	1.60%	1.10%	0.90%
Expected volatility	36.00%	44.00%	34.00%
Risk free interest rate	0.30%	0.30%	2.70%
weighted-average fair value per share	$ 10.30	$ 9.76	$ 17.21
Stock Compensation Plans
Stock-based compensation expense	33,000,000	36,000,000	30,000,000
Restricted Stock [Member]
Stock Compensation Plans
Stock-based compensation expense	44,000,000	32,000,000	31,000,000
Stock Options [Member]
Stock Compensation Plans
Stock-based compensation expense	$ 121,000,000	$ 118,000,000	$ 111,000,000

Stock Compensation Plans (Details Textuals) $ in Millions	12 Months Ended
Stock Compensation Plans (Details Textuals) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Share-Based Compensation, Arrangements by Share-Based Payment Award
The aggregate intrinsic value of stock options outstanding	$ 1
The aggregate intrinsic value of stock options exercisable	630
The total intrinsic value of options exercised	$ 188	$ 103	$ 119
Restricted stock awards, vesting period	Three years with the exception of certain grants which vest over a two year period with a subsequent two year holding period
Stock Compensation Plans (Textuals)
Expected to be recognized in 2011	$ 156
Expected to be recognized in 2012	122
Expected to be recognized in 2013	65
Expected to be recognized in 2014	35
Expected to be recognized in 2015	4
Total unrecognized compensation cost related to nonvested stock-based compensation arrangements	$ 382
Stock Options [Member]
Share-Based Compensation, Arrangements by Share-Based Payment Award
Stock Option Maximum Term	Ten years
Stock Options vesting period	Four or five years
The weighted average remaining contractual life of stock options exercisable, in years	4.6
Discounted Stock Purchase Plan [Member]
Share-Based Compensation, Arrangements by Share-Based Payment Award
The purchase price of the stock	92.5% of the lower of the stock price at the beginning or end of the plan period at six-month intervals

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Current:
United States - Federal	$ 76	$ (191)	$ 453
United States - State	14	(6)	34
Outside United States	909	594	949
Current Income Tax Expense (Benefit), Total	999	397	1,436
Deferred:
United States - Federal	183	247	23
United States - State	2	13	1
Outside United States	(281)	86	(12)
Valuation allowance	(13)	27	(18)
Deferred income taxes	(109)	373	(6)
Consolidated taxes on income	$ 890	$ 770	$ 1,430

Income Taxes (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
Income Taxes (Details Textuals) - USD ($) $ in Millions	Jun. 30, 2009	Dec. 31, 2008	Sep. 30, 2010	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Income Taxes [Line Items]
Recorded pretax charges	$ 238	$ 116	$ 90	$ 32	$ 238	$ 116
Net Pretax Credit				621
Deferred tax assets, valuation allowances relating to net operating losses in certain countries				$ 263	251
Deferred tax assets, foreign tax credit carryforward, expires in 2012					$ 30
US statutory federal tax rate				35.00%	35.00%	35.00%
Income Taxes (Textuals) [Abstract]
Accrued interest and penalties		$ 136		$ 210	$ 168	$ 136
Recognized interest and penalties				42	32	25
Outside United States [Member]
Income Taxes [Line Items]
Recorded pretax charges					165	101
Net Pretax Credit				847
United States [Member]
Income Taxes [Line Items]
Recorded pretax charges				$ 226	$ 73	$ 15

Segment Information (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

$ 27,447

$ 22,702

$ 27,163

5,156

3,934

6,852

51,767

33,465

32,094

2,759

^[1]

2,476

^[1]

2,269

2,914

2,395

3,723

North America

5,010

3,707

5,914

802

216

1,371

2,725

2,264

2,728

412

433

451

272

750

Latin America

4,321

4,225

4,230

723

753

858

2,947

3,117

2,529

289

261

223

417

393

414

Europe, CIS, and Africa

6,882

7,150

8,180

1,269

1,707

2,244

4,917

4,603

4,410

715

653

600

849

824

988

Middle East and Asia

5,586

5,234

5,724

1,696

1,693

2,005

3,509

3,162

3,503

517

531

496

597

417

762

Other

280

202

234

(15)

(43)

1,639

1,630

2,014

(9)

Oilfield Services [Member]

131

128

22,079

20,518

24,282

4,475

4,326

6,505

15,737

14,776

15,184

1,964

1,879

1,743

2,445

1,927

3,042

WesternGeco [Member]

1,987

2,122

2,838

267

326

836

2,896

3,065

2,956

579

566

518

276

463

680

M-I SWACO [Member]

1,568

197

2,786

Smith Oilfield [Member]

957

132

2,329

110

Distribution [Member]

774

780

Goodwill And Intangible Assets [Member]

All Other Assets [Member]

17,114

6,091

6,009

1,580

1,873

1,914

Corporate and Other

(405)

(344)

(268)

6,545

7,660

6,031

Interest Income

Interest Expense [Member]

112

Charges and Credits [Member]

(202)

(188)

(217)