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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 21, 2011

SCHLUMBERGER N.V.
(SCHLUMBERGER LIMITED)

(Exact name of registrant as specified in its charter)


Curaçao (State or other jurisdiction of incorporation)		1-4601 (Commission File Number)		52-0684746 (IRS Employer Identification No.)

42, rue Saint-Dominique, Paris, France 75007
5599 San Felipe, 17th Floor, Houston, Texas 77056
Parkstraat 83, The Hague, The Netherlands 2514 JG
(Addresses of principal executive offices and zip or postal codes)

Registrant’s telephone number in the United States, including area code: (713) 513-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 7.01		Regulation FD Disclosure.

As previously disclosed, Schlumberger Limited (“Schlumberger” or the “Company”) will change its reporting segments beginning with its quarter ending March 31, 2011. On a Form 8-K furnished to the Securities and Exchange Commission on December 9, 2010, Schlumberger provided unaudited pro forma historical consolidated financial information (“Pro Forma Information”) on the basis of the new reporting structure, giving effect to the acquisitions of Smith International, Inc. (“Smith”) and Geoservices as if they had occurred on January 1, 2008. Schlumberger is furnishing this Form 8-K to reflect 2010 Fourth Quarter and Full Year information in the Pro Forma Information.

Background

Schlumberger currently reports its results on the basis of two business segments, Oilfield Services and WesternGeco, and by geographical areas within Oilfield Services. As a result of the recent acquisitions of Smith and Geoservices, Schlumberger will change its primary reporting to product group segments (the “Groups”), effective with the first quarter of 2011. The Company will also continue to report its results on a geographical basis.

The Groups are as follows:

	•		*Reservoir Characterization Group*: This group will consist of the principal Technologies involved in the finding and defining of hydrocarbon deposits. These include WesternGeco, Wireline, Well Testing, Schlumberger Information Services, and Data & Consulting Services.

	•		*Drilling Group*: This group will be comprised of Bits & Advanced Technologies, M-I SWACO, Geoservices, Drilling & Measurements, PathFinder, Drilling Tools & Remedial Services, Dynamic Pressure Management and IPM well construction projects.

	•		*Reservoir Production Group*: Includes Well Services, Completions and Artificial Lift Technologies together with Subsea and Water and Carbon Services activities, and the production activities of IPM.

The Groups will collectively be referred to as “Oilfield Services.” Additionally, Schlumberger will also report the distribution business acquired in the Smith transaction as a separate segment.

The Pro Forma Information is based on the historical consolidated statements of income of Schlumberger, Smith and Geoservices. The Pro Forma Information has been adjusted to reflect pro forma events that are directly attributable to the transactions and factually supportable. As such, the Pro Forma Information does not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the transactions, the costs to integrate the operations of Schlumberger, Smith and Geoservices, or the costs necessary to achieve these cost savings, operating synergies and revenue enhancements.

The Pro Forma Information has been presented for informational purposes only and is not necessarily indicative of what the combined companies’ results of operations would have been had the transactions actually been completed as of January 1, 2008. In addition, the Pro Forma Information does not purport to project the future operating results of the combined companies.


Item 9.01		Financial Statements and Exhibits.

(d) Exhibits

The exhibit listed below is furnished pursuant to Item 9.01 of this Form 8-K.

99.1

Unaudited Pro Forma Historical Consolidated Financial Information.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SCHLUMBERGER N.V. (SCHLUMBERGER LIMITED)
	By:	/s/ Howard Guild
		Howard Guild
		Chief Accounting Officer

Date: January 21, 2011

exv99w1

Exhibit 99.1

Schlumberger Limited

Unaudited Pro Forma Historical

Consolidated Financial Information

Unaudited Pro Forma Historical Consolidated Financial Information

Schlumberger Limited (“Schlumberger” or the “Company”) currently reports its results on the basis of two business segments, Oilfield Services and WesternGeco, and by geographical areas within Oilfield Services. As a result of the recent acquisitions of Smith International, Inc. (“Smith”) and Geoservices, Schlumberger has reached a point where its coverage of the various activities comprising exploration and production services is so broad that the Company will be changing the primary way in which it allocates resources and assesses performance. Consequently, as previously announced and effective with the first quarter of 2011, Schlumberger will change its primary reporting to product group segments (the “Groups”). Schlumberger believes that this change will give investors a better perspective on the different parts of its business. The Company will also continue to report its results on a geographical basis.

The Groups are as follows:

	•		*Reservoir Characterization Group:* This group will consist of the principal Technologies involved in the finding and defining of hydrocarbon deposits. These include WesternGeco, Wireline, Well Testing, Schlumberger Information Services, and Data & Consulting Services.

	•		*Drilling Group:* This group will be comprised of Bits & Advanced Technologies, M-I SWACO, Geoservices, Drilling & Measurements, PathFinder, Drilling Tools & Remedial Services, Dynamic Pressure Management and IPM well construction projects.

	•		*Reservoir Production Group*: Includes Well Services, Completions and Artificial Lift Technologies together with Subsea and Water and Carbon Services activities, and the production activities of IPM.

The Groups will collectively be referred to as “Oilfield Services.” Additionally, Schlumberger will also report the distribution business acquired in the Smith transaction, as a separate segment.

The above changes will be reflected in the consolidated financial statements and segment reporting beginning in fiscal year 2011, starting with the Form 10-Q for the three months ended March 31, 2011. To provide additional perspective on these changes, Schlumberger has prepared the accompanying unaudited pro forma historical consolidated financial information (“Pro Forma Information”) on the basis of the new reporting structure, giving effect to the acquisitions of Smith and Geoservices as if they had occurred on January 1, 2008.

The Pro Forma Information has been presented for informational purposes only and is not necessarily indicative of what the combined company’s results of operations would have been had the transactions actually been completed as of January 1, 2008. In addition, the Pro Forma Information does not purport to project the future operating results of the combined companies.

2008 UNAUDITED PRO FORMA HISTORICAL CONSOLIDATED FINANCIAL INFORMATION
(Stated in millions, except per share amounts)

2008 BY BUSINESS GROUP

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

Reservoir Characterization

2,684

866

2,823

926

3,106

1,086

2,832

819

11,445

3,697

Reservoir Production

2,136

412

2,299

454

2,506

491

2,571

468

9,512

1,825

Drilling

3,314

764

3,552

889

3,797

872

3,788

768

14,451

3,293

Eliminations & Other

(23

)

(18

)

(29

)

(70

)

8,147

2,019

8,680

2,251

9,415

2,420

9,214

2,055

35,456

8,745

Distribution

568

616

761

794

2,739

181

8,715

2,049

9,296

2,288

10,176

2,482

10,008

2,107

38,195

8,926

Corporate ⁽¹⁾

(131

)

(119

)

(133

)

(120

)

(503

)

Interest Income

112

Interest Expense ⁽²⁾

(67

)

(64

)

(70

)

(77

)

(278

)

Charges & Credits ⁽⁵⁾

(145

)

(145

)

Income before Tax and Noncontrolling Interests

1,888

2,127

2,307

1,790

8,112

Tax Expense

(429

)

(508

)

(561

)

(457

)

(1,955

)

Income from Continuing Operations

1,459

1,619

1,746

1,333

6,157

Noncontrolling Interests

(14

)

(10

)

(20

)

(51

)

Schlumberger Income from Continuing Operations

1,445

1,609

1,726

1,326

6,106

2008 BY GEOGRAPHIC AREA

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

North America

2,306

593

2,294

553

2,665

634

2,818

636

10,083

2,416

Latin America

1,197

222

1,349

271

1,446

267

1,449

239

5,441

999

Europe/CIS/W. Africa

2,709

679

2,998

808

3,271

955

2,877

629

11,855

3,071

Middle East & Asia

1,924

562

2,032

638

2,013

603

2,045

558

8,014

2,361

Eliminations & Other

(37

)

(19

)

(39

)

(102

)

8,147

2,019

8,680

2,251

9,415

2,420

9,214

2,055

35,456

8,745

Distribution

568

616

761

794

2,739

181

8,715

2,049

9,296

2,288

10,176

2,482

10,008

2,107

38,195

8,926

Corporate ⁽¹⁾

(131

)

(119

)

(133

)

(120

)

(503

)

Interest Income

112

Interest Expense ⁽²⁾

(67

)

(64

)

(70

)

(77

)

(278

)

Charges & Credits ⁽⁵⁾

(145

)

(145

)

Income before Tax and Noncontrolling Interests

1,888

2,127

2,307

1,790

8,112

Tax Expense

(429

)

(508

)

(561

)

(457

)

(1,955

)

Income from Continuing Operations

1,459

1,619

1,746

1,333

6,157

Noncontrolling Interests

(14

)

(10

)

(20

)

(51

)

Schlumberger Income from Continuing Operations

1,445

1,609

1,726

1,326

6,106

Average Diluted Shares Outstanding ⁽³⁾

1,408

1,405

1,400

1,385

1,399

Diluted Earnings per Share - excluding Charges & Credits ⁽⁴⁾

1.03

1.15

1.23

1.04

4.46

Diluted Earnings per Share - including Charges & Credits ⁽⁴⁾

1.03

1.15

1.23

0.96

4.37

Effective Tax Rate - excluding Charges & Credits

22.7%

23.9%

24.3%

25.0%

24.0%

Effective Tax Rate - including Charges & Credits

22.7%

23.9%

24.3%

25.5%

24.1%

2009 UNAUDITED PRO FORMA HISTORICAL CONSOLIDATED FINANCIAL INFORMATION
(Stated in millions, except per share amounts)

2009 BY BUSINESS GROUP

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

Reservoir Characterization

2,487

644

2,396

633

2,294

565

2,521

701

9,698

2,543

Reservoir Production

2,040

262

1,775

191

1,762

195

1,852

151

7,429

799

Drilling

3,368

667

2,951

488

2,921

481

2,999

450

12,239

2,086

Eliminations & Other

)

(24

)

(23

)

(56

)

7,904

1,564

7,128

1,288

6,993

1,241

7,387

1,279

29,412

5,372

Distribution

570

411

)

379

(20

)

410

(19

)

1,770

(32

)

8,474

1,580

7,539

1,279

7,372

1,221

7,797

1,260

31,182

5,340

Corporate ⁽¹⁾

(156

)

(149

)

(161

)

(161

)

(627

)

Interest Income

Interest Expense ⁽²⁾

(62

)

(77

)

(74

)

(72

)

(285

)

Charges & Credits ⁽⁵⁾

(33

)

(251

)

(13

)

(297

)

Income before Tax and Noncontrolling Interests

1,343

815

986

1,039

4,183

Tax Expense

(330

)

(174

)

(209

)

(199

)

(912

)

Income from Continuing Operations

1,013

641

777

840

3,271

Noncontrolling Interests

)

(27

)

Schlumberger Income from Continuing Operations

1,004

633

772

835

3,244

2009 BY GEOGRAPHIC AREA

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

North America

2,023

261

1,461

1,412

1,603

141

6,499

546

Latin America

1,403

283

1,323

232

1,400

245

1,479

198

5,605

958

Europe/CIS/W.Africa

2,528

543

2,500

530

2,480

525

2,482

502

9,990

2,100

Middle East & Asia

1,944

538

1,834

506

1,686

427

1,788

469

7,252

1,940

Eliminations & Other

(61

)

(52

)

(28

)

(31

)

(172

)

7,904

1,564

7,128

1,288

6,993

1,241

7,387

1,279

29,412

5,372

Distribution

570

411

)

379

(20

)

410

(19

)

1,770

(32

)

8,474

1,580

7,539

1,279

7,372

1,221

7,797

1,260

31,182

5,340

Corporate ⁽¹⁾

(156

)

(149

)

(161

)

(161

)

(627

)

Interest Income

Interest Expense ⁽²⁾

(62

)

(77

)

(74

)

(72

)

(285

)

Charges & Credits ⁽⁵⁾

(33

)

(251

)

(13

)

(297

)

Income before Tax and Noncontrolling Interests

1,343

815

986

1,039

4,183

Tax Expense

(330

)

(174

)

(209

)

(199

)

(912

)

Income from Continuing Operations

1,013

641

777

840

3,271

Noncontrolling Interests

)

(27

)

Schlumberger Income from Continuing Operations

1,004

633

772

835

3,244

Average Diluted Shares Outstanding ⁽³⁾

1,385

1,389

1,393

1,390

Diluted Earnings per Share - excluding Charges & Credits ⁽⁴⁾

0.74

0.61

0.56

0.60

2.52

Diluted Earnings per Share - including Charges & Credits ⁽⁴⁾

0.73

0.46

0.56

0.60

2.34

Effective Tax Rate - excluding Charges & Credits

24.6%

19.6%

21.3%

19.2%

21.4%

Effective Tax Rate - including Charges & Credits

24.6%

21.3%

21.2%

19.2%

21.8%

2010 UNAUDITED PRO FORMA HISTORICAL CONSOLIDATED FINANCIAL INFORMATION

(Stated in millions, except per share amounts)

2010 BY BUSINESS GROUP

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

Reservoir Characterization

2,301

561

2,358

553

2,338

525

2,551

677

9,548

2,316

Reservoir Production

1,920

164

2,136

260

2,312

384

2,720

578

9,088

1,386

Drilling

3,114

466

3,260

510

3,131

432

3,194

473

12,699

1,881

Eliminations & Other

(12

)

(32

)

(24

)

7,346

1,206

7,770

1,328

7,795

1,329

8,491

1,696

31,402

5,559

Distribution

452

490

548

576

2,066

7,798

1,211

8,260

1,342

8,343

1,349

9,067

1,717

33,468

5,619

Corporate ⁽¹⁾

(161

)

(168

)

(140

)

(152

)

(621

)

Interest Income

Interest Expense ⁽²⁾

(66

)

(69

)

(68

)

(59

)

(262

)

Charges & Credits ⁽⁵⁾

(75

)

(15

)

823

(180

)

553

Income before Tax and Noncontrolling Interests

922

1,101

1,974

1,335

5,332

Tax Expense

(261

)

(229

)

(236

)

(290

)

(1,016

)

Income from Continuing Operations

661

872

1,738

1,045

4,316

Noncontrolling Interests

)

Schlumberger Income from Continuing Operations

657

872

1,738

1,043

4,310

2010 BY GEOGRAPHIC AREA

Year

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Revenue

Pretax

Income

Oilfield Services

North America

1,854

195

1,971

232

2,091

322

2,584

589

8,500

1,338

Latin America

1,406

218

1,499

234

1,389

194

1,381

207

5,675

853

Europe/CIS/W.Africa

2,266

368

2,404

393

2,434

409

2,461

450

9,565

1,620

Middle East & Asia

1,792

462

1,855

489

1,823

451

1,973

464

7,443

1,866

Eliminations & Other

(37

)

(20

)

(47

)

(14

)

219

(118

)

7,346

1,206

7,770

1,328

7,795

1,329

8,491

1,696

31,402

5,559

Distribution

452

490

548

576

2,066

7,798

1,211

8,260

1,342

8,343

1,349

9,067

1,717

33,468

5,619

Corporate ⁽¹⁾

(161

)

(168

)

(140

)

(152

)

(621

)

Interest Income

Interest Expense ⁽²⁾

(66

)

(69

)

(68

)

(59

)

(262

)

Charges & Credits ⁽⁵⁾

(75

)

(15

)

823

(180

)

553

Income before Tax and Noncontrolling Interests

922

1,101

1,974

1,335

5,332

Tax Expense

(261

)

(229

)

(236

)

(290

)

(1,016

)

Income from Continuing Operations

661

872

1,738

1,045

4,316

Noncontrolling Interests

)

Schlumberger Income from Continuing Operations

657

872

1,738

1,043

4,310

Average Diluted Shares Outstanding ⁽³⁾

1,390

1,383

1,375

1,376

1,381

Diluted Earnings per Share - excluding Charges & Credits ⁽⁴⁾

0.56

0.64

0.65

0.85

2.69

Diluted Earnings per Share - including Charges & Credits ⁽⁴⁾

0.47

0.63

1.26

0.76

3.12

Effective Tax Rate - excluding Charges & Credits

22.0%

21.1%

22.5%

23.1%

22.2%

Effective Tax Rate - including Charges & Credits

28.3%

20.8%

12.0%

21.7%

19.1%

Notes to the Schlumberger Limited Unaudited Pro Forma Historical
Consolidated Financial Information

(1)

Includes depreciation and amortization expense associated with fair value adjustments to Smith’s acquired assets of approximately $50 million per quarter.

(2)

Reflects a reduction in interest expense of approximately $15 million per quarter as a result of fair value adjustments recorded in purchase accounting relating to Smith’s long-term fixed rate debt.

(3)

Diluted shares outstanding was calculated by taking the Schlumberger historical diluted shares outstanding and adding the approximately 176 million shares of Schlumberger common stock issued in connection with the Smith transaction.

(4)

The calculation of diluted earnings per share reflects the adding back of interest expense associated with Schlumberger’s outstanding convertible debentures to net income, as appropriate, for each period presented.

(5)

The following is a summary of Charges & Credits recorded in each period as well as a reconciliation of pro forma diluted earnings per share, excluding charges and credits to pro forma diluted earnings per share including charges and credits:

2008 Charges & Credits and Reconciliation of Pro Forma Diluted EPS

(Stated in millions, except per share amounts)


	Fourth Quarter 2008
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	1,790	$	457	$	7	$	1,326	$	0.96
Add back Schlumberger Charges & Credits:
Workforce reductions		74		9		-		65		0.05
Provision for doubtful accounts		32		8		-		24		0.02
Other		10		-		-		10		0.01
Add back Smith Charges & Credits:
Derivative contract related loss		29		10		-		19		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	1,935	$	484	$	7	$	1,444	$	1.04


	Twelve Months 2008
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	8,112	$	1,955	$	51	$	6,106	$	4.37
Add back Schlumberger Charges & Credits:
Workforce reductions		74		9		-		65		0.05
Provision for doubtful accounts		32		8		-		24		0.02
Other		10		-		-		10		0.01
Add back Smith Charges & Credits:
Derivative contract related loss		29		10		-		19		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	8,257	$	1,982	$	51	$	6,224	$	4.46

2009 Charges & Credits and Reconciliation of Pro Forma Diluted EPS

(Stated in millions, except per share amounts)


	First Quarter 2009
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	1,343	$	330	$	9	$	1,004	$	0.73
Add back Smith Charges & Credits:
Workforce reductions		33		9		-		24		0.02

Income attributable to Schlumberger, excluding Charges & Credits	$	1,376	$	339	$	9	$	1,028	$	0.74


	Second Quarter 2009
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	815	$	174	$	8	$	633	$	0.46
Add back Schlumberger Charges & Credits:
Workforce reductions		102		17		-		85		0.06
Postretirement benefits curtailment		136		14		-		122		0.09
Add back Smith Charges & Credits:
Workforce reductions		13		4		-		9		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	1,066	$	209	$	8	$	849	$	0.61


	Third Quarter 2009
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	986	$	209	$	5	$	772	$	0.56
Add back Smith Charges & Credits:
Workforce reductions		13		4		-		9		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	999	$	213	$	5	$	781	$	0.56


	Twelve Months 2009
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	4,183	$	912	$	27	$	3,244	$	2.34
Add back Schlumberger Charges & Credits:
Workforce reductions		102		17		-		85		0.06
Postretirement benefits curtailment		136		14		-		122		0.09
Add back Smith Charges & Credits:
Workforce reductions		59		17		-		42		0.03

Income attributable to Schlumberger, excluding Charges & Credits	$	4,480	$	960	$	27	$	3,493	$	2.52

2010 Charges & Credits and Reconciliation of Pro Forma Diluted EPS

(Stated in millions, except per share amounts)


	First Quarter 2010
	Pretax		Tax			Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	922	$	261		$	4	$	657	$	0.47
Add back Schlumberger Charges & Credits:
Medicare Part D subsidy, elimination of tax deduction		-		(40	)		-		40		0.03
Merger-related transaction costs		35		-			-		35		0.03
Add back Smith Charges & Credits:
Venezuela currency devaluation		23		(3	)		-		26		0.02
Merger-related transaction costs		17		1			-		16		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	997	$	219		$	4	$	774	$	0.56


	Second Quarter 2010
	Pretax			Tax			Noncont. Interest		Net			Diluted EPS ^(*)

Income attributable to Schlumberger	$	1,101		$	229		$	-	$	872		$	0.63
Add back Smith Charges & Credits:
Venezuela currency devaluation		12			3			-		9			0.01
Merger-related transaction costs		24			6			-		18			0.01
Gain on investment in @balance		(21	)		(3	)		-		(18	)		(0.01	)

Income attributable to Schlumberger, excluding Charges & Credits	$	1,116		$	235		$	-	$	881		$	0.64


	Third Quarter 2010
	Pretax			Tax			Noncont. Interest		Net			Diluted EPS ^(*)

Income attributable to Schlumberger	$	1,974		$	236		$	-	$	1,738		$	1.26
Add back Schlumberger Charges & Credits:
Severance and other		90			13			-		77			0.06
Impairment relating to WesternGeco’s first generation Q-Land acquisition system		78			7			-		71			0.05
Other WesternGeco-related charges		63			-			-		63			0.05
Professional fees and other		56			1			-		55			0.04
Merger-related employee benefits		41			6			-		35			0.03
Mexico restructuring		40			4			-		36			0.03
Inventory fair value adjustments		38			14			-		24			0.02
Repurchase of bonds		28			10			-		18			0.01
Gain on investment in M-I SWACO		(1,270	)		(32	)		-		(1,238	)		(0.90	)
Add back Smith Charges & Credits:
Merger-related transaction costs		13			-			-		13			0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	1,151		$	259		$	-	$	892		$	0.65

2010 Charges & Credits and Reconciliation of Pro Forma Diluted EPS (cont.)

(Stated in millions, except per share amounts)


	Fourth Quarter 2010
	Pretax		Tax		Noncont. Interest		Net		Diluted EPS ^(*)

Income attributable to Schlumberger	$	1,335	$	290	$	2	$	1,043	$	0.76
Add back Schlumberger Charges & Credits:
Inventory fair value adjustments		115		42		-		73		0.05
Merger-related employee benefits		16		4		-		12		0.01
Merger-related employee benefits		17		1		-		16		0.01
Reurchase of bonds		32		12		-		20		0.01

Income attributable to Schlumberger, excluding Charges & Credits	$	1,515	$	349	$	2	$	1,164	$	0.85


	Twelve Months 2010
	Pretax			Tax			Noncont. Interest		Net			Diluted EPS ^(*)

Income attributable to Schlumberger	$	5,332		$	1,016		$	6	$	4,310		$	3.12
Add back Schlumberger Charges & Credits:
Medicare Part D subsidy, elimination of tax deduction		-			(40	)		-		40			0.03
Severance and other		90			13			-		77			0.06
Impairment relating to WesternGeco’s first generation Q-Land acquisition system		78			7			-		71			0.06
Other WesternGeco-related charges		63			-			-		63			0.05
Professional fees and other		107			1			-		106			0.08
Merger-related employee benefits		58			10			-		48			0.04
Mexico restructuring		40			4			-		36			0.03
Inventory fair value adjustments		153			56			-		97			0.07
Repurchase of bonds		60			23			-		37			0.01
Gain on investment in M-I SWACO		(1,270	)		(32	)		-		(1,238	)		(0.90	)
Add back Smith Charges & Credits:
Venezuela currency devaluation		35			-			-		35			0.03
Merger-related transaction costs		54			7			-		47			0.03
Gain on investment in @balance		(21	)		(3	)		-		(18	)		(0.01	)

Income attributable to Schlumberger, excluding Charges & Credits	$	4,779		$	1,062		$	6	$	3,711		$	2.69

^(*)May not add due to rounding

Diluted earnings per share excluding Charges & Credits and effective tax rate excluding Charges & Credits are non-GAAP financial measures. Schlumberger management believes that the exclusion of Charges & Credits from the foregoing financial measures enables it to evaluate more effectively, Schlumberger’s operations period over period and to identify operating trends that could otherwise be masked by the excluded items. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for, or superior to other measures of financial performance prepared in accordance with GAAP.