Schlumberger Limited (SLB) 10-Q 28 Oct 09 2009 Q3 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Revenue	$5,430		$7,259		$16,958		$20,295
Interest & other income, net	74		107		211		306
Expenses
Cost of revenue	4,122		4,967		13,019		13,934
Research & engineering	198		208		585		597
Marketing	22		23		67		71
General & administrative	128		150		390		434
Interest	54		61		169		189
Income from Continuing Operations before taxes	980		1,957		2,939		5,376
Taxes on income	191		418		595		1,104
Income from Continuing Operations	789		1,539		2,344		4,272
Income from Discontinued Operations	0		0		0		38
Net Income	789		1,539		2,344		4,310
Net income attributable to noncontrolling interests	(2)		(13)		(6)		(25)
Net Income attributable to Schlumberger	787		1,526		2,338		4,285
Schlumberger amounts attributable to:
Income from Continuing Operations	787		1,526		2,338		4,247
Income from Discontinued Operations	0		0		0		38
Net Income	$787		$1,526		$2,338		$4,285
Basic earnings per share of Schlumberger:
Income from Continuing Operations	0.66		1.27		1.95		3.55
Income from Discontinued Operations	$0		$0		$0		0.03
Net Income	0.66		1.27		1.95		3.58
Diluted earnings per share of Schlumberger:
Income from Continuing Operations	0.65		1.25		1.93		3.46
Income from Discontinued Operations	$0		$0		$0		0.03
Net Income	0.65	[1]	1.25	[1]	1.93	[1]	3.5	[1]
Average shares outstanding:
Basic	1,200		1,199		1,198		1,197
Assuming dilution	1,218		1,225		1,214		1,229
[1]Amounts may not add due to rounding

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current Assets
Cash	$194	$189
Short-term investments	4,035	3,503
Receivables less allowance for doubtful accounts (2009-$149; 2008-$133)	6,087	6,258
Inventories	1,967	1,919
Deferred taxes	158	184
Other current assets	941	933
Assets, Current, Total	13,382	12,986
Fixed Income Investments, held to maturity	625	470
Investments in Affiliated Companies	2,243	1,870
Fixed Assets less accumulated depreciation	9,610	9,690
Multiclient Seismic Data	285	287
Goodwill	5,296	5,189
Intangible Assets	813	820
Deferred Taxes	317	565
Other Assets	504	217
Assets, Total	33,075	32,094
Current Liabilities
Accounts payable and accrued liabilities	4,736	5,319
Estimated liability for taxes on income	929	1,007
Dividend payable	250	252
Long-term debt-current portion	596	1,138
Convertible debentures	321	0
Bank & short-term loans	283	459
Liabilities, Current, Total	7,115	8,175
Convertible Debentures	0	321
Other Long-term Debt	4,312	3,372
Postretirement Benefits	1,293	2,369
Other Liabilities	892	923
Liabilities, Total	13,612	15,160
Equity
Common stock	4,746	4,668
Treasury stock	(4,568)	(4,796)
Retained earnings	21,475	19,891
Accumulated other comprehensive loss	(2,298)	(2,901)
Schlumberger stockholders' equity	19,355	16,862
Noncontrolling interests	108	72
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total	19,463	16,934
Liabilities and Stockholders' Equity, Total	$33,075	$32,094

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Receivables, allowance for doubtful accounts	$149	$133

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net Income	$789	$1,539	$2,344		$4,310
Less: Income from discontinued operations	0	0	0		(38)
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			1,848	[1]	1,656	[1]
Non-cash postretirement benefits curtailment charge			136		0
Earnings of companies carried at equity, less dividends received			(54)		(178)
Deferred income taxes			258		(1)
Stock-based compensation expense			139		126
Provision for losses on accounts receivable			40		15
Other non-cash items			77		27
Change in assets and liabilities:
Decrease (increase) in receivables			154	[2]	(1,278)	[2]
Increase in inventories			(42)	[2]	(242)	[2]
Increase in other current assets			(9)	[2]	(167)	[2]
(Decrease) increase in accounts payable and accrued liabilities			(556)	[2]	527	[2]
(Decrease) increase in estimated liability for taxes on income			(238)	[2]	100	[2]
Decrease in postretirement benefits			(701)	[2]	(28)	[2]
Decrease in other liabilities			(39)	[2]	(33)	[2]
Other-net			(13)	[2]	98	[2]
NET CASH PROVIDED BY OPERATING ACTIVITIES			3,344		4,894
Cash flows from investing activities:
Capital expenditures			(1,719)		(2,553)
Multiclient seismic data capitalized			(150)		(263)
Business acquisitions, net of cash acquired			(475)		(345)
Purchases of investments, net			(674)		(417)
Other			134		(171)
NET CASH USED BY INVESTING ACTIVITIES			(2,884)		(3,749)
Cash flows from financing activities:
Dividends paid			(758)		(712)
Proceeds from employee stock purchase plan			97		108
Proceeds from exercise of stock options			59		164
Tax benefits on stock options			4		109
Stock repurchase plan			0		(1,665)
Proceeds from issuance of long-term debt			1,980		1,052
Repayment of long-term debt			(1,652)		(224)
Net decrease in short-term debt			(185)		(48)
NET CASH USED IN FINANCING ACTIVITIES			(455)		(1,216)
Cash flow from discontinued operations-operating activities			0		63
Net increase (decrease) in cash before translation effect			5		(8)
Translation effect on cash			0		0
Cash, beginning of period			189		197
Cash, end of period	$194	$189	$194		$189
[1]Includes multiclient seismic data costs.
[2]Net of the effect of business acquisitions.

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock Issued	Common Stock In Treasury	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Issued	In Treasury	Total
Beginning Balance at Dec. 31, 2007	$4,136	($3,549)	$15,462	($1,173)	$62			$14,938
Comprehensive income
Net Income			4,285		25			4,310
Currency translation adjustments				87
Changes in fair value of derivatives				(87)
Deferred employee benefits liabilities, net of tax				48
Shares sold to optionees, less shares exchanged	22	142						164
Shares granted to directors	1							1
Shares issued under employee stock purchase plan	115	57						172
Stock repurchase plan		(1,665)						(1,665)
Stock-based compensation cost	126							126
Shares issued on conversion of debentures	84	352						436
Other	1				(13)			(12)
Dividends declared ($0.63 per share)			(756)					(756)
Tax benefits on stock options	109							109
Ending Balance at Sep. 30, 2008	4,594	(4,663)	18,991	(1,125)	74			17,871
Comprehensive income
Beginning Balance at Dec. 31, 2008						1,334	(140)	1,194
Beginning Balance at Dec. 31, 2008	4,668	(4,796)	19,891	(2,901)	72			16,934
Comprehensive income
Net Income			2,338		6			2,344
Currency translation adjustments				(35)
Changes in fair value of derivatives				157
Deferred employee benefits liabilities, net of tax				481
Shares sold to optionees, less shares exchanged	(8)	67						59
Shares granted to directors		1						1
Vesting of restricted stock	(19)	19						0
Shares issued under employee stock purchase plan	25	141						166
Stock-based compensation cost	139							139
Acquisition of noncontrolling interest	(6)							(6)
Other	(57)				30			(27)
Dividends declared ($0.63 per share)			(754)					(754)
Tax benefits on stock options	4							4
Shares sold to optionees, less shares exchanged							2	2
Shares issued under employee stock purchase plan							4	4
Ending Balance at Sep. 30, 2009	$4,746	($4,568)	$21,475	($2,298)	$108			$19,463
Ending Balance at Sep. 30, 2009						1,334	(134)	1,200
Beginning Balance at Jun. 30, 2009						1,334
Comprehensive income
Ending Balance at Sep. 30, 2009						1,334

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Dividends declared, per share	0.63	0.63

1. Basis of Presentation

1. Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. Basis of Presentation	1. Basis of Presentation The accompanying unaudited consolidated financial statements, which include the accounts of Schlumberger Limited and its subsidiaries (Schlumberger), have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the nine month period ended September30, 2009 are not necessarily indicative of the results that may be expected for the full year ending December31, 2009. The December31, 2008 balance sheet information has been derived from the audited 2008 financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto, included in the Schlumberger Annual Report on Form 10-K for the year ended December31, 2008, filed with the Securities and Exchange Commission on February11, 2009. Certain items from prior year have been reclassified to conform to the current year presentation. Subsequent events have been evaluated through October28, 2009, which is the date the financial statements were issued. Recently Adopted Accounting Pronouncement Effective January1, 2009, Schlumberger adopted newly issued accounting guidance that changed the accounting for, and reporting of, minority interests (now referred to as noncontrolling interests). Noncontrolling interests are now classified as Equity in the Schlumberger Consolidated Balance Sheet. The new guidance also changed the way the consolidated income statement is presented, by requiring net income to include the net income for both the parent and the noncontrolling interests, with disclosure of both amounts on the consolidated statement of income. The calculation of earnings per share continues to be based on income amounts attributable to the parent. Prior period amounts related to noncontrolling interests have been reclassified to conform to the current period presentation.

2. Charges

2. Charges
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. Charges	2. Charges Schlumberger recorded the following charges during the second quarter of 2009: Schlumberger continued to reduce its global workforce as a result of the slowdown in oil and gas exploration and production spending and its effect on activity in the oilfield services sector. As a result of these actions, Schlumberger recorded a pretax charge of $102 million ($85 million after-tax), which is classified in Cost of revenue in the Consolidated Statement of Income. 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). These costs are classified in Cost of revenue in the Consolidated Statement of Income. Refer to Note 15 Pension and Other Postretirement Benefits for further details. The following is a summary of these charges: (Stated in millions) Pretax Tax Net Charges - Workforce reductions $ 102 $ (17 ) $ 85 - Postretirement benefits curtailment 136 (14 ) 122 $ 238 $ (31 ) $ 207

3. Earnings Per Share

3. Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. Earnings Per Share	3. Earnings Per Share The following is a reconciliation from basic earnings per share of Schlumberger from continuing operations to diluted earnings per share of Schlumberger from continuing operations: (Statedinmillions,exceptpershareamounts) 2009 2008 Schlumberger Income from Continuing Operations Average Shares Outstanding Earnings per Share Schlumberger Income from Continuing Operations Average Shares Outstanding Earnings per Share Third Quarter Basic $ 787 1,200 $ 0.66 $ 1,526 1,199 $ 1.27 Assumed conversion of debentures 2 8 2 9 Assumed exercise of stock options 9 16 Unvested restricted stock 1 1 Diluted $ 789 1,218 $ 0.65 $ 1,528 1,225 $ 1.25 Schlumberger Income from Continuing Operations Average Shares Outstanding Earnings perShare Schlumberger Income from Continuing Operations Average Shares Outstanding Earnings perShare Nine Months Basic $ 2,338 1,198 $ 1.95 $ 4,247 1,197 $ 3.55 Assumed conversion of debentures 6 8 10 15 Assumed exercise of stock options 7 16 Unvested restricted stock 1 1 Diluted $ 2,344 1,214 $ 1.93 $ 4,257 1,229 $ 3.46 The number of outstanding options to purchase shares of Schlumberger common stock which were not included in the computation of diluted earnings per share, because to do so would have had an antidilutive effect, were as follows: (Statedinmillions) 2009 2008 Third Quarter 10 1 Nine Months 17 1

4. Acquisitions

4. Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. Acquisitions	4. Acquisitions During the first nine months of 2009, Schlumberger made certain acquisitions and minority interest investments, for $475 million, net of cash acquired, none of which were significant on an individual basis or in the aggregate.

5. Inventory

5. Inventory
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. Inventory	5. Inventory A summary of inventory follows: (Stated in millions) Sept. 30 2009 Dec. 31 2008 Raw materials field materials $ 1,734 $ 1,674 Work in process 78 113 Finished goods 155 132 $ 1,967 $ 1,919

6. Fixed Assets

6. Fixed Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. Fixed Assets	6. Fixed Assets A summary of fixed assets follows: (Stated in millions) Sept. 30 2009 Dec. 31 2008 Property, plant equipment $ 21,140 $ 20,152 Less: Accumulated depreciation 11,530 10,462 $ 9,610 $ 9,690 Depreciation expense relating to fixed assets was as follows: (Stated in millions) 2009 2008 Third Quarter $ 542 $ 485 Nine Months $ 1,609 $ 1,394

7. Multiclient Seismic Data

7. Multiclient Seismic Data
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. Multiclient Seismic Data	7. Multiclient Seismic Data The change in the carrying amount of multiclient seismic data for the nine months ended September30, 2009 was as follows: (Statedinmillions) Balance at December31, 2008 $ 287 Capitalized in period 150 Charged to cost of goods sold and services (152 ) Balance at September30, 2009 $ 285

8. Goodwill

8. Goodwill
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. Goodwill	8. Goodwill The changes in the carrying amount of goodwill by business segment for the nine months ended September30, 2009 were as follows: (Stated in millions) Oilfield Services Western Geco Total Balance at December31, 2008 $ 4,174 $ 1,015 $ 5,189 Additions 120 120 Impact of change in exchange rates (13 ) (13 ) Balance at September30, 2009 $ 4,281 $ 1,015 $ 5,296

9. Intangible Assets

9. Intangible Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. Intangible Assets	9. Intangible Assets Intangible assets principally comprise software, technology and customer relationships. The gross book value and accumulated amortization of intangible assets were as follows: (Stated in millions) Sept. 30, 2009 Dec. 31, 2008 Gross BookValue Accumulated Amortization NetBook Value Gross BookValue Accumulated Amortization NetBook Value Software $ 338 $ 255 $ 83 $ 337 $ 233 $ 104 Technology 527 150 377 465 117 348 Customer Relationships 355 73 282 345 56 289 Other 127 56 71 124 45 79 $ 1,347 $ 534 $ 813 $ 1,271 $ 451 $ 820 Amortization expense charged to income was as follows: (Statedinmillions) 2009 2008 Third Quarter $ 29 $ 31 Nine Months $ 86 $ 94 The weighted average amortization period for all intangible assets is approximately 12 years. Based on the net book value of intangible assets at September30, 2009, amortization charged to income for the subsequent five years is estimated to be: remainder of 2009 $27 million; 2010 $104 million; 2011 $96 million; 2012 $83 million; 2013 $73million and 2014 $67 million.

10. Derivative Instruments and

10. Derivative Instruments and Hedging Activities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10. Derivative Instruments and Hedging Activities	10. 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. Schlumbergers functional currency is primarily the US dollar, which is consistent with the oil and gas industry. However, outside the United States, a significant portion of Schlumbergers expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which Schlumberger conducts business, the US dollar reported expenses will increase (decrease). Schlumberger is exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that are other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges, with the effective portion of changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in Other Comprehensive Income (Loss). Amounts recorded in Other Comprehensive Income (Loss) are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of the hedged item is recorded directly to earnings. At September30, 2009, Schlumberger recognized a cumulative net $53 million gain in Equity relating to revaluation of foreign currency forward contracts and foreign currency options designated as cash flow hedges, the majority of which is expected to be reclassified into earnings within the next twelve months. Schlumberger is also exposed to changes in the fair value of assets and liabilities, including certain of its long-term debt, which are denominated in currencies other than the functional currency. Schlumberger uses foreign currency forward contracts and foreign currency options to hedge this exposure as it relates to certain currencies. These contracts are accounted for as fair value hedges with the fair value of the contracts recorded on the Consolidated Balance Sheet and changes in the fair value recognized in the Consolidated Statement of Income along with the change in fair value of the hedged item. At September30, 2009, contracts were outstanding for the US dollar equivalent of $4.4 billion in various foreign currencies. Commodity Price Risk Schlumberger is exposed to the impact of market fluctuations in the price of commodities, such as copper and lead. Schlumberger has entered into forward contracts on these commodities to manage the price risk associated with forecasted purchases. The objective of these contracts is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. These contracts d

11. Other Financial Instruments

11. Other Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. Other Financial Instruments	11. Other Financial Instruments Both Short-term investments and Fixed Income Investments, held to maturity are comprised primarily of money market funds, eurodollar time deposits, certificates of deposits, commercial paper, euro notes and Eurobonds, and are substantially denominated in US dollars. The carrying value of these investments approximates fair value, which was estimated using quoted market prices for those or similar investments. A summary of Other Long-Term Debt follows: (Stated in millions) Sept. 30, 2009 Dec. 31, 2008 Carrying Amount Fair Value Carrying Amount Fair Value 5.25% Guaranteed Notes due 2013 $ 730 $ 779 $ 714 $ 731 6.50% Notes due 2012 648 711 647 651 3.00% Guaranteed Notes due 2013 450 454 5.875% Guaranteed Bonds due 2011 369 395 355 390 5.14% Guaranteed Notes due 2010 203 209 4.50% Guaranteed Notes due 2014 1,457 1,530 Commercial paper borrowings 292 292 771 771 Other variable rate debt 364 364 682 682 4,310 4,525 3,372 3,434 Fair value adjustmenthedging 2 2 $ 4,312 $ 4,527 $ 3,372 $ 3,434 At both September30, 2009 and December31, 2008, there were $321 million outstanding of 2.125% Series B Convertible Debentures due June1, 2023. On June1, 2010, holders may require Schlumberger to repurchase their Series B debentures for cash. Accordingly, these debentures are classified within Current Liabilities on the Consolidated Balance Sheet at September30, 2009. The fair value of these Series B debentures at September30, 2009 and December31, 2008 was $510 million and $398 million, respectively. For further information regarding the debentures refer to Note 11 to the Consolidated Financial Statements included in the Schlumberger Annual Report on Form 10-K for the year ended December31, 2008. The fair value adjustment presented above represents changes in the fair value of the portion of Schlumbergers fixed rate debt that is hedged through the use of interest rate swaps. During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013. 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 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%. The fair value of Schlumbergers fixed rate long-term debt was estimated based on quoted market prices.

12. Income Tax

12. Income Tax
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. Income Tax	12. Income Tax Income from Continuing Operations before taxes which were subject to US and non-US income taxes was as follows: (Statedinmillions) Third Quarter Nine Months 2009 2008 2009 2008 United States $ (61 ) $ 383 $ (21 ) $ 1,117 Outside United States 1,041 1,574 2,960 4,259 $ 980 $ 1,957 $ 2,939 $ 5,376 During the second quarter of 2009, Schlumberger recorded pretax charges of $73 million in the US and $165 million outside of the US. These charges are included in the above table and are more fully described in Note 2 Charges. The components of net deferred tax assets were as follows: (Statedinmillions) Sept.30 2009 Dec.31 2008 Postretirement benefits, net $ 363 $ 556 Multiclient seismic data 110 121 Intangible assets (117 ) (106 ) Other, net 119 178 $ 475 $ 749 The above deferred tax assets at September30, 2009 and December31, 2008 are net of valuation allowances relating to net operating losses in certain countries of $245 million and $197 million, respectively. The deferred tax assets are also net of valuation allowances relating to a capital loss carryforward of $136 million at September30, 2009 ($140 million at December31, 2008), of which $120 million expires in 2009 and $16 million expires in 2010, and a foreign tax credit carryforward of $30 million at September30, 2009 ($49 million at December31, 2008) which expires in 2012. The components of consolidated Taxes on income were as follows: (Statedinmillions) Third Quarter Nine Months 2009 2008 2009 2008 Current: United States - Federal $ (67 ) $ 120 $ (122 ) $ 335 United States - State (1 ) 14 (3 ) 27 Outside United States 82 280 462 743 $ 14 $ 414 $ 337 $ 1,105 Deferred: United States - Federal $ 76 $ 19 $ 147 $ 20 United States - State 3 7 Outside United States 81 (14 ) 88 (10 ) Valuation allowance 17 (1 ) 16 (11 ) $ 177 $ 4 $ 258 $ (1 ) Consolidated taxes on income $ 191 $ 418 $ 595 $ 1,104 A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows: ThirdQuarter NineMonths 2009 2008 2009 2008 US federal statutory rate 35 % 35 % 35 % 35 % US state income taxes 1 Non-US income taxed at different rates (14 ) (12 ) (14 ) (12 ) Effect of equity method investment (1 ) (1 ) Charges

13. Contingencies

13. Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. Contingencies	13. Contingencies In 2007, Schlumberger received an inquiry from the United States Department of Justice (DOJ) related to the DOJs investigation of whether certain freight forwarding and customs clearance services of Panalpina, Inc., and other companies provided to oil and oilfield service companies, including Schlumberger, violated the Foreign Corrupt Practices Act. Schlumberger is cooperating with the DOJ and is currently continuing its own investigation with respect to these services. In 2009, Schlumberger learned that United States officials are currently conducting a grand jury investigation and an associated inquiry, both related to certain Schlumberger operations in specified countries that are subject to United States trade and economic sanctions. Schlumberger is cooperating with the governmental authorities and is currently unable to predict the outcome of these matters. During 1999, Schlumberger completed the spin-off of its offshore contract drilling business, Sedco Forex, to its stockholders and the subsequent merger of Sedco Forex and Transocean. Following the merger of Sedco Forex and Transocean, Brazilian subsidiaries of Transocean and Schlumberger became involved in legal proceedings regarding import duties related to a Transocean rig previously owned by Schlumberger. In 2004, the Brazilian customs authorities issued an assessment against Transoceans subsidiary. During the third quarter of 2009, Transocean received an unfavorable ruling from the appellate court in Brazil. The appellate court further found Schlumberger to be jointly and severally liable with Transocean for the import duties. At September30, 2009, the US dollar equivalent of the customs assessment was approximately $200 million. Transocean has stated that it considers any assessment to be solely the responsibility of Schlumberger and has initiated proceedings against Schlumberger in the United States seeking a declaratory judgment to this effect. Schlumberger is currently evaluating its potential options. Any liability that might ensue from this matter is not expected to be material in relation to Schlumbergers consolidated liquidity or financial position. Furthermore, any liability that may result would be recorded within Discontinued Operations in the Consolidated Statement of Income. Schlumberger and its subsidiaries are party to various other legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. At this time the ultimate disposition of these proceedings is not determinable and therefore, it is not possible to estimate the amount of loss or range of possible losses that might result from an adverse judgment or settlement in any of these matters. However, in the opinion of management, any liability that might ensue would not be material in relation to Schlumbergers consolidated liquidity, financial position or future results of operations.

14. Segment Information

14. Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. Segment Information	14. Segment Information Schlumberger operates two business segments: Oilfield Services and WesternGeco. (Stated in millions) Third Quarter 2009 Third Quarter 2008 Revenue Income beforetaxes Revenue Income beforetaxes Oilfield Services North America $ 823 $ 28 $ 1,500 $ 317 Latin America 1,071 197 1,141 230 Europe/CIS/Africa 1,782 422 2,165 628 Middle East Asia 1,233 391 1,495 530 Other 44 4 55 (6 ) 4,953 1,042 6,356 1,699 WesternGeco 463 61 892 355 Corporate Other 14 (87 ) 11 (72 ) Interest Income (1) 13 28 Interest Expense (2) (49 ) (53 ) $ 5,430 $ 980 $ 7,259 $ 1,957 1. Excludes interest income included in the segment results ($2 million in 2009; $3 million in 2008). 2. Excludes interest expense included in the segment results ($5 million in 2009; $9 million in 2008). (Stated in millions) Nine Months 2009 Nine Months 2008 Revenue Income beforetaxes Revenue Income beforetaxes Oilfield Services North America $ 2,833 $ 198 $ 4,357 $ 1,024 Latin America 3,095 575 3,119 658 Europe/CIS/Africa 5,367 1,321 6,132 1,711 Middle East Asia 3,920 1,268 4,258 1,515 Other 134 (42 ) 161 (3 ) 15,349 3,320 18,027 4,905 WesternGeco 1,573 212 2,239 748 Corporate Other 36 (254 ) 29 (198 ) Interest Income (1) 40 87 Interest Expense (2) (141 ) (166 ) Charges (238 ) $ 16,958 $ 2,939 $ 20,295 $ 5,376 1. Excludes interest income included in the segment results ($10 million in 2009; $6 million in 2008). 2. Excludes interest expense included in the segment results ($29 million in 2009; $23 million in 2008).

15. Pension and Other Postretir

15. Pension and Other Postretirement Benefits
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15. Pension and Other Postretirement Benefits	15. Pension and Other Postretirement Benefits Net pension cost for the Schlumberger pension plans included the following components: (Stated in millions) Third Quarter Nine Months US Int'l US Int'l 2009 2008 2009 2008 2009 2008 2009 2008 Service costbenefits earned during period $ 11 $ 13 $ 21 $ 8 $ 41 $ 42 $ 50 $ 26 Interest cost on projected benefit obligation 27 33 51 15 104 98 141 45 Expected return on plan assets (33 ) (40 ) (55 ) (20 ) (121 ) (121 ) (135 ) (60 ) Amortization of prior service cost 1 2 25 4 5 87 Amortization of net loss 6 2 3 24 11 10 12 10 42 6 52 35 143 21 Curtailment charge 32 98 $ 12 $ 10 $ 42 $ 6 $ 84 $ 35 $ 241 $ 21 During the first nine months of 2009, Schlumberger made contributions to its US and international defined benefit pension plans of $314 million and $551 million, respectively. The net periodic benefit cost for the Schlumberger US postretirement medical plan included the following components: (Stated in millions) Third Quarter Nine Months 2009 2008 2009 2008 Service costbenefits earned during period $ 3 $ 5 $ 15 $ 17 Interest cost on accumulated postretirement benefit obligation 15 13 41 39 Expected return on plan assets (1 ) (1 ) (2 ) Amortization of prior service cost (5 ) (7 ) (19 ) (21 ) Amortization of net loss (1 ) 3 4 8 12 13 40 41 Curtailment charge 6 $ 12 $ 13 $ 46 $ 41 Due to the actions Schlumberger has taken to reduce its global workforce (see Note 2 Charges), 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. 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 December31, 2008). All other significant assumptions remained un

16. Discontinued Operations

16. Discontinued Operations
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16. Discontinued Operations	16. Discontinued Operations During the first quarter of 2008, Schlumberger recorded an after-tax gain of $38 million relating to a previously disposed of business that was accounted for as a discontinued operation.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009
Entity [Text Block]
Trading Symbol	SLB
Entity Registrant Name	SCHLUMBERGER LTD /NV/
Entity Central Index Key	0000087347
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,200,764,289