Schlumberger Limited (SLB) 10-K 5 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Revenue	$22,702		$27,163		$23,277
Interest and other income, net	273		402		431
Expenses
Cost of revenue	17,395		18,968		15,481
Research & engineering	802		819		728
Marketing	88		95		82
General & administrative	535		584		517
Interest	221		247		275
Income from Continuing Operations before taxes	3,934		6,852		6,625
Taxes on income	770		1,430		1,448
Income from Continuing Operations	3,164		5,422		5,177
Income (Loss) from Discontinued Operations	(22)		38		0
Net Income	3,142		5,460		5,177
Net income attributable to noncontrolling interests	(8)		(25)		0
Net Income	3,134		5,435		5,177
Schlumberger amounts attributable to:
Income from Continuing Operations	3,156		5,397		5,177
Income (Loss) from Discontinued Operations	(22)		38		0
Net Income	$3,134		$5,435		$5,177
Basic earnings per share of Schlumberger:
Income from Continuing Operations	2.63		4.51		4.36
Income (Loss) from Discontinued Operations	-0.02		0.03		$0
Net Income	2.62	[1]	4.54	[1]	4.36	[1]
Diluted earnings per share of Schlumberger:
Income from Continuing Operations	2.61		4.42		4.2
Income (Loss) from Discontinued Operations	-0.02		0.03		$0
Net Income	2.59		4.45		4.2
Average shares outstanding
Basic	1,198		1,196		1,188
Assuming dilution	1,214		1,224		1,239
[1]Amounts may not add due to rounding

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash	$243	$189
Short-term investments	4,373	3,503
Receivables less allowance for doubtful accounts (2009 - $160; 2008 - $133)	6,088	6,258
Inventories	1,866	1,919
Deferred taxes	154	184
Other current assets	926	933
Assets, Current, Total	13,650	12,986
Fixed Income Investments, held to maturity	738	470
Investments in Affiliated Companies	2,306	1,870
Fixed Assets less accumulated depreciation	9,660	9,690
Multiclient Seismic Data	288	287
Goodwill	5,305	5,189
Intangible Assets	786	820
Deferred Taxes	376	565
Other Assets	356	217
Assets, Total	33,465	32,094
Current Liabilities
Accounts payable and accrued liabilities	5,003	5,318
Estimated liability for taxes on income	878	1,007
Dividend payable	253	252
Long-term debt - current portion	444	1,139
Short-term borrowings	360	459
Convertible debentures	321	0
Liabilities, Current, Total	7,259	8,175
Convertible Debentures	0	321
Other Long-term Debt	4,355	3,372
Postretirement Benefits	1,660	2,369
Other Liabilities	962	923
Liabilities, Total	14,236	15,160
Equity
Common stock	4,777	4,668
Treasury stock	(5,002)	(4,796)
Retained earnings	22,019	19,891
Accumulated other comprehensive loss	(2,674)	(2,901)
Schlumberger stockholders' equity	19,120	16,862
Noncontrolling interests	109	72
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total	19,229	16,934
Liabilities and Stockholders' Equity, Total	$33,465	$32,094

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Receivables, allowance for doubtful accounts	$160	$133

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net Income	$3,142		$5,460		$5,177
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,476	[1]	2,269	[1]	1,954	[1]
Earnings of companies carried at equity, less dividends received	(103)		(235)		(183)
Deferred income taxes	373		(6)		22
Stock-based compensation expense	186		172		136
Pension and other postretirement benefits expense	306		127		155
Pension and other postretirement benefits curtailment charge	136		0		0
Pension and other postretirement benefits funding	(1,149)		(318)		(294)
Other non-cash items	162		128		33
Change in operating assets and liabilities:
Decrease (increase) in receivables	155	[2]	(944)	[2]	(1,017)	[2]
Decrease (increase) in inventories	64	[2]	(299)	[2]	(356)	[2]
Decrease (increase) in other current assets	9	[2]	(198)	[2]	(92)	[2]
(Decrease) increase in accounts payable and accrued liabilities	(293)	[2]	683	[2]	502	[2]
(Decrease) increase in estimated liability for taxes on income	(361)	[2]	(94)	[2]	328	[2]
Increase in other liabilities	43	[2]	97	[2]	16	[2]
Other - net	165	[2]	57	[2]	(94)	[2]
NET CASH PROVIDED BY OPERATING ACTIVITIES	5,311		6,899		6,287
Cash flows from investing activities:
Capital expenditures	(2,395)		(3,723)		(2,931)
Multiclient seismic data capitalized	(230)		(345)		(260)
Acquisition of Eastern Echo, net of cash acquired	0		0		(838)
Other business acquisitions and investments, net of cash acquired	(514)		(345)		(281)
Purchase of investments, net	(1,113)		(598)		(89)
Other	228		(132)		(230)
NET CASH USED IN INVESTING ACTIVITIES	(4,024)		(5,143)		(4,629)
Cash flows from financing activities:
Dividends paid	(1,006)		(964)		(771)
Proceeds from employee stock purchase plan	96		177		148
Proceeds from exercise of stock options	110		174		474
Tax benefit on stock options	4		137		75
Stock repurchase program	(500)		(1,819)		(1,355)
Proceeds from issuance of long-term debt	1,973		1,281		455
Repayment of long-term debt	(1,754)		(601)		(584)
Net (decrease) increase in short-term borrowings	(111)		(210)		(72)
NET CASH USED IN FINANCING ACTIVITIES	(1,188)		(1,825)		(1,630)
Cash flow from discontinued operations - operating activities	(45)		63		0
Net increase (decrease) in cash before translation effect	54		(6)		28
Translation effect on cash	0		(2)		3
Cash, beginning of year	189		197		166
Cash, end of year	$243		$189		$197
[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	Total
Beginning Balance at Dec. 31, 2006	1,334	(156)				1,178
Beginning Balance at Dec. 31, 2006	$3,381	($2,911)	$11,118	($1,169)	$2	$10,421
Comprehensive income:
Net Income			5,177		2	5,177
Currency translation adjustments				(33)
Changes in fair value of derivatives				11
Deferred employee benefits liabilities				18
Shares sold to optionees less shares exchanged	195	279				474
Shares granted to Directors	1					1
Shares issued under employee stock purchase plan	87	46				133
Stock repurchase program		(1,355)				(1,355)
Stock-based compensation cost	136					136
Shares issued on conversions of debentures	263	392				655
Acquisition of noncontrolling interest					58	58
Other	(2)					(2)
Dividends declared ($0.84 per share in 2009, $0.84 per share in 2008, and $0.70 per share in 2007)			(833)			(833)
Tax benefit on stock options	75					75
Shares sold to optionees less shares exchanged		14				14
Shares issued under employee stock purchase plan		2				2
Stock repurchase program		(16)				(16)
Issued on conversions of debentures		18				18
Ending Balance at Dec. 31, 2007	4,136	(3,549)	15,462	(1,173)	62	14,938
Ending Balance at Dec. 31, 2007	1,334	(138)				1,196
Comprehensive income:
Net Income			5,435		25	5,460
Currency translation adjustments				(82)	(1)
Changes in fair value of derivatives				(135)
Deferred employee benefits liabilities				(1,511)
Shares sold to optionees less shares exchanged	20	154				174
Shares granted to Directors	1					1
Shares issued under employee stock purchase plan	115	57				172
Stock repurchase program		(1,819)				(1,819)
Stock-based compensation cost	172					172
Shares issued on conversions of debentures	86	361				447
Other	1				(14)	(13)
Dividends declared ($0.84 per share in 2009, $0.84 per share in 2008, and $0.70 per share in 2007)			(1,006)			(1,006)
Tax benefit on stock options	137					137
Shares sold to optionees less shares exchanged		5				5
Shares issued under employee stock purchase plan		2				2
Stock repurchase program		(21)				(21)
Issued on conversions of debentures		12				12
Ending Balance at Dec. 31, 2008	4,668	(4,796)	19,891	(2,901)	72	16,934
Ending Balance at Dec. 31, 2008	1,334	(140)				1,194
Comprehensive income:
Net Income			3,134		8	3,142
Currency translation adjustments				17	1
Changes in fair value of derivatives				143
Deferred employee benefits liabilities				67
Shares sold to optionees less shares exchanged	(22)	132				110
Shares granted to Directors		1				1
Vesting of restricted stock	(20)	20				0
Shares issued under employee stock purchase plan	25	141				166
Stock repurchase program		(500)				(500)
Stock-based compensation cost	186					186
Other	(64)				28	(36)
Dividends declared ($0.84 per share in 2009, $0.84 per share in 2008, and $0.70 per share in 2007)			(1,006)			(1,006)
Tax benefit on stock options	4					4
Shares sold to optionees less shares exchanged		4				4
Vesting of restricted stock		1				1
Shares issued under employee stock purchase plan		4				4
Stock repurchase program		(8)				(8)
Ending Balance at Dec. 31, 2009	$4,777	($5,002)	$22,019	($2,674)	$109	$19,229
Ending Balance at Dec. 31, 2009	1,334	(139)				1,195

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Dividends declared, per share	0.84	0.84	0.7

Business Description

Business Description
	12 Months Ended Dec. 31, 2009 USD / shares
Business Description	1.Business Description Schlumberger Limited (Schlumberger N.V., incorporated in the Netherlands Antilles) and its subsidiaries (collectively, Schlumberger) form the worlds leading supplier of technology, integrated project management, and information solutions to customers in the oil and gas industry worldwide, providing the industrys widest range of services and products from exploration through production. Schlumberger consists of two business segments: Oilfield Services and WesternGeco. The Oilfield Services segment provides the industrys widest range of 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.

Summary of Accounting Policies

Summary of Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
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. Schlumbergers share of the after-tax earnings of equity method investees is included in Interest and other income. 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 items from prior years 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 assets and 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 Oilfield Services Services and Products Revenue Schlumberger recognizes revenue for services and products based upon purchase orders, contracts or other persuasive evidence of an arrangement with the customer that include fixed or determinable prices. Revenue is recognized for services when they are rendered and collectibility is reasonably assured. Revenue is recognized for products upon delivery, customer acceptance and when collectibility is reasonably assured. Software Revenue 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 al

Charges and Credits

Charges and Credits
	12 Months Ended Dec. 31, 2009 USD / shares
Charges and Credits	3.Charges and Credits Schlumberger recorded the following Charges and Credits in continuing operations during 2009, 2008 and 2007: 2009 Second quarter of 2009: Schlumberger continued to reduce its global workforce as a result of the slowdown in oil and gas exploration and production spending and its effect on activity in the oilfield services sector. As a result of these actions, Schlumberger recorded a pretax charge of $102 million ($85 million after-tax), which is classified in Cost of revenue in the Consolidated Statement of Income. 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). These costs are classified in Cost of revenue in the Consolidated Statement of Income. Refer to Note 19 Pension and Other Benefit Plans for further details. The following is a summary of these charges: (Stated in millions) Pretax Tax Net - Workforce reductions $ 102 $ (17 ) $ 85 - Postretirement benefits curtailment 136 (14 ) 122 $ 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), which is classified in Cost of revenue in the Consolidated Statement of Income. 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). $32 million of the pretax charge is classified in Cost of revenue in the Consolidated Statement of Income, with the remaining $10 million classified in Interest and other income, net. The following is a summary of these charges: (Stated in millions) Pretax Tax Non- controlling Interests Net - Workforce reduction $ 74 $ (9 ) $ $ 65 - Provision for doubtful accounts 32 (8 ) (6 ) 18 - Other 10 10 $ 116 $ (17 ) $ (6 ) $ 93 2007 Fourth quarter of 2007: Schlumberger sold certain workover rigs for $32 million, resulting in a pretax gain of $24 million ($17 million after-tax) which is classified in Interest and other income, net in the Consolidated Statement of Income.

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions	4.Acquisitions Acquisition of Eastern Echo Holding Plc On December10, 2007, Schlumberger completed the acquisition of Eastern Echo Holding Plc (Eastern Echo) for $838 million in cash. Eastern Echo was a Dubai-based marine seismic company that did not have any operations at the time of acquisition, but had signed contracts for the construction of six seismic vessels. The purchase price has been allocated to the net assets acquired based upon their estimated fair values as follows: (Stated in millions) Cash and short-term investments $ 266 Other current assets 23 Fixed income investments, held to maturity 54 Vessels under construction 694 Accounts payable and accrued liabilities (17 ) Long-term debt (182 ) Total purchase price $ 838 Other Acquisitions Schlumberger has made other acquisitions and minority interest investments, none of which were significant on an individual basis, for cash payments, net of cash acquired, of $514 million during 2009, $345 million during 2008, and $281 million during 2007. Pro forma results pertaining to the above acquisitions are not presented as the impact was not significant.

Drilling Fluids Joint Venture

Drilling Fluids Joint Venture
	12 Months Ended Dec. 31, 2009 USD / shares
Drilling Fluids Joint Venture	5.Drilling Fluids Joint Venture The MI-SWACO drilling fluids joint venture is owned 40% by Schlumberger and 60% by Smith International, Inc. Schlumberger records income relating to this venture using the equity method of accounting. The carrying value of Schlumbergers investment in the joint venture on December31, 2009 and 2008 was $1.4 billion and $1.3 billion, respectively, and is included within Investments in Affiliated Companies on the Consolidated Balance Sheet. Schlumbergers equity income from this joint venture was $131 million in 2009, $210 million in 2008 and $178 million in 2007. Schlumberger received cash distributions from the joint venture of $106 million in 2009, $57 million in 2008 and $46 million in 2007. The joint venture agreement contains a provision under which either party to the joint venture may offer to sell its entire interest in the venture to the other party at a cash purchase price per percentage interest specified in an offer notice.If the offer to sell is not accepted, the offering party will be obligated to purchase the entire interest of the other party at the same price per percentage interest as the prices specified in the offer notice.

Inventory

Inventory
	12 Months Ended Dec. 31, 2009 USD / shares
Inventory	6.Inventory A summary of inventory follows: (Stated in millions) As at December 31, 2009 2008 Raw materials field materials $ 1,646 $ 1,674 Work in process 74 113 Finished goods 146 132 1,866 1,919

Fixed Assets

Fixed Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Fixed Assets	7.Fixed Assets A summary of fixed assets follows: (Stated in millions) As at December31, 2009 2008 Land $ 141 $ 119 Buildings improvements 1,806 1,611 Machinery equipment 17,939 16,916 Seismic vessels and related equipment 924 544 Seismic vessels under construction 695 962 21,505 20,152 Less accumulated depreciation 11,845 10,462 $ 9,660 $ 9,690 The estimated useful lives of Buildings improvements are primarily 30 to 40 years. The estimated useful lives of Machinery equipment are primarily 5 to 10 years. Seismic vessels are depreciated over periods ranging from 20 to 30 years with the related equipment generally depreciated over 5 years. Depreciation expense relating to fixed assets was $2.1 billion, $1.9 billion and $1.5 billion in 2009, 2008 and 2007, respectively.

Multiclient Seismic Data

Multiclient Seismic Data
	12 Months Ended Dec. 31, 2009 USD / shares
Multiclient Seismic Data	8.Multiclient Seismic Data The change in the carrying amount of multiclient seismic data is as follows: (Stated in millions) 2009 2008 Balance at beginning of year $ 287 $ 182 Capitalized in year 230 345 Charged to cost of revenue (229 ) (240 ) $ 288 $ 287

Goodwill

Goodwill
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill	9.Goodwill The changes in the carrying amount of goodwill by business segment were as follows: (Stated in millions) Oilfield Services Western Geco Total Balance, January1, 2008 $ 4,185 $ 957 $ 5,142 Additions 49 58 107 Impact of change in exchange rates (60 ) (60 ) Balance, December31, 2008 4,174 1,015 5,189 Additions 121 121 Impact of change in exchange rates (5 ) (5 ) Balance, December31, 2009 $ 4,290 $ 1,015 $ 5,305

Intangible Assets

Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Intangible Assets	10.Intangible Assets Intangible assets principally comprise software, technology and customer relationships. At December31, the gross book value and accumulated amortization of intangible assets were as follows: (Stated in millions) 2009 2008 Gross BookValue Accumulated Amortization NetBook Value Gross BookValue Accumulated Amortization NetBook Value Software $ 339 $ 262 $ 77 $ 337 $ 233 $ 104 Technology 527 163 364 465 117 348 Customer Relationships 355 80 275 345 56 289 Other 121 51 70 124 45 79 $ 1,342 $ 556 $ 786 $ 1,271 $ 451 $ 820 Amortization expense was $114 million in 2009, $124 million in 2008 and $124 million in 2007. The weighted average amortization period for all intangible assets is approximately 12 years. Amortization expense for the subsequent five years is estimated to be as follows: 2010 $109million, 2011 $101million, 2012 $96million, 2013 $77million and 2014 $72 million.

Long-term Debt and Debt Facilit

Long-term Debt and Debt Facility Agreements
	12 Months Ended Dec. 31, 2009 USD / shares
Long-term Debt and Debt Facility Agreements	11.Long-term Debt and Debt Facility Agreements Series A Convertible Debentures During 2003, Schlumberger Limited issued $975 million aggregate principal amount of 1.5% Series A Convertible Debentures due June1, 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). During 2007, $622 million of the Series A debentures were converted into 17.2million shares of Schlumberger common stock. During 2008, all of the remaining $353 million of outstanding Series A debentures were converted into 9.8million shares of Schlumberger common stock. Series B Convertible Debentures During 2003, Schlumberger Limited issued $450 million aggregate principal amount of 2.125% Series B Convertible Debentures due June1, 2023. The Series B debentures are convertible, at the holders option, into shares of common stock of Schlumberger Limited. Holders of the Series B debentures may convert their debentures 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). The conversion rate may be adjusted for certain events, but it will not be adjusted for accrued interest. On or after June6, 2010, Schlumberger may redeem for cash all or part of the debentures, upon notice to the holders, at the redemption prices of 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of redemption. On June1, 2010,June1, 2013 and June1, 2018, holders may require Schlumberger to repurchase their Series B debentures. The repurchase price will be 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date. The repurchase price for repurchases on June1, 2010 will be paid in cash. On the other repurchase dates, Schlumberger may choose to pay the repurchase price in cash or common stock or any combination of cash and common stock. In addition, upon the occurrence of a Fundamental Change (defined as a change in control or a termination of trading of Schlumbergers common stock), holders may require Schlumberger to repurchase all or a portion of their debentures for an amount equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.The repurchase price may be paid in cash, Schlumberger common stock (or if Schlumberger is not the surviving entity in a merger, the securities of the surviving entity) or a combination of cash and the applicable securities, at Schlumbergers option.The applicable securities will be valued at 99% of their market price. Schlumbergers option to pay the repurchase price with securities is subject to certain conditions. The debentures will mature on June1, 2023 unless earlier redeemed or repurchased. During 2008 and 2007, $95 million and $34 million of the Series B debentures were converted into 2.4million and 0.9million shares of Schlumberger common stock, respectively. There were $321 million of the Series B debentures

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities	12.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. Approximately 80% of Schlumbergers revenue in 2009 was denominated in US dollars. 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 hedging instruments, if any, is recorded directly to earnings. At December31, 2009, Schlumberger recognized a cumulative net $40 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 December31, 2009, contracts were outstanding for the US dollar equivalent of $4.3 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

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity	13.Stockholders Equity Schlumberger is authorized to issue 3,000,000,000 shares of common stock, par value $0.01 per share, of which 1,194,812,901 and 1,194,100,845 shares were outstanding on December31, 2009 and 2008, respectively. Schlumberger is also authorized to issue 200,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in series with terms and conditions determined by the Board of Directors. No shares of preferred stock have been issued. Holders of common stock are entitled to one vote for each share of stock held. The following is a reconciliation of Accumulated Other Comprehensive Income (Loss): (Stated in millions) AccumulatedOtherComprehensiveIncome(Loss) Currency Translation Adjustments FairValueof Derivatives Deferred Employee Benefits Liabilities Total Balance, January1, 2007 $ (788 ) $ 21 $ (402 ) $ (1,169 ) Currency translation adjustments (33 ) (33 ) Changes in fair value of derivatives 11 11 Amortization of prior service cost (20 ) (20 ) Amortization of actuarial net loss 56 56 Unrecognized prior service cost arising in the year (32 ) (32 ) Actuarial net gains arising in the year 120 120 Deferred taxes (106 ) (106 ) Balance, December31, 2007 (821 ) 32 (384 ) (1,173 ) Currency translation adjustments (82 ) (82 ) Changes in fair value of derivatives (135 ) (135 ) Amortization of prior service cost (20 ) (20 ) Amortization of actuarial net loss 34 34 Unrecognized prior service cost arising in the year (1,077 ) (1,077 ) Actuarial net losses arising in the year (725 ) (725 ) Deferred taxes 277 277 Balance, December31, 2008 (903 ) (103 ) (1,895 ) (2,901 ) Currency translation adjustments 17 17 Changes in fair value of derivatives 143 143 Amortization of prior service cost 97 97 Amortization of actuarial net loss 32 32 Impact of curtailment 96 96 Unrecognized prior service cost arising in the year 27 27 Actuarial net losses arising in the year (237 ) (237 ) Deferred taxes 52 52 Balance, December31, 2009 $ (886 ) $ 40 $ (1,828 ) $ (2,674 )

Stock Compensation Plans

Stock Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Compensation Plans	14.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 options maximum term is generally ten years, and options generally vest in increments over four or five years. The gain on the awards granted during the period from July 2003 to January 2006 is capped at 125% of the exercise price. Awards granted subsequent to January 2006 do not have a cap on any potential gain and generally vest in increments over 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: 2009 2008 2007 Dividend yield 1.2 % 1.0 % 1.1 % Expected volatility 34 % 31 % 33 % Risk free interest rate 2.2 % 3.2 % 4.7 % Expected option life in years 6.9 7.0 6.9 Weighted-average fair value per share $ 13.92 $ 29.33 $ 25.94 The following table summarizes information concerning outstanding and options exercisable by five ranges of exercise prices as of December31, 2009: (Shares stated in thousands) OPTIONS OUTSTANDING OPTIONS EXERCISABLE Exercise prices range Options Outstanding Weighted- average remaining contractuallife (in years) Weighted- average exercise price Options Exercisable Weighted- average exercise price $19.035-$32.455 7,081 3.15 $ 28.35 7,081 $ 28.35 $32.618-$37.845 8,300 7.92 $ 36.79 2,038 $ 33.56 $38.532-$54.235 9,431 5.45 $ 50.48 6,644 $ 50.11 $56.605-$73.995 5,129 7.27 $ 60.69 1,757 $ 60.88 $84.930-$110.775 5,559 8.05 $ 88.56 1,153 $ 89.96 35,500 6.24 $ 50.30 18,673 $ 43.53 The weighted average remaining contractual life of stock options exercisable as of December31, 2009 was 4.47 years. The following table summarizes stock option activity during the years ended December31, 2009, 2008 and 2007: (Shares stated in thousands) 2009 2008 2007 Shares Weighted- average exercise price Shares Weighted- average exercise price Shares Weighted- average exercise price Outstanding at beginning of year 32,301 $ 50.36 35,719 $ 41.02 48,679 $ 36.36 Granted 7,981 $ 40.87 5,422 $ 84.95 4,399 $ 66.48 Exercised (3,851 ) $ 29.00 (5,444 ) $ 32.69 (13,789 ) $ 34.89 Forfeited (931 ) $ 58.82 (3,396 ) $ 42.68 (3,570 ) $ 31.74 Outstand

Income Tax Expense

Income Tax Expense
	12 Months Ended Dec. 31, 2009 USD / shares
Income Tax Expense	15.Income Tax Expense 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 December31, was as follows: (Stated in millions) 2009 2008 2007 United States $ 86 $ 1,432 $ 1,754 Outside United States 3,848 5,420 4,871 Pretax income $ 3,934 $ 6,852 $ 6,625 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). Schlumberger recorded a pretax credit outside the US of $25 million in 2007. 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 were as follows: (Stated in millions) 2009 2008 Postretirement benefits $ 447 $ 556 Multiclient seismic data 104 121 Intangible assets (122 ) (106 ) Other, net 101 178 $ 530 $ 749 The above deferred tax assets at December31, 2009 and 2008 are net of valuation allowances relating to net operating losses in certain countries of $251 million and $197 million, respectively. The deferred tax assets are also net of valuation allowances relating to a capital loss carryforward of $17 million at December31, 2009 ($140 million at December31, 2008) which expires in 2010 and a foreign tax credit carryforward of $30 million at December31, 2009 ($49 million at December31, 2008) which expires in 2012. The components of Taxes on income were as follows: (Stated in millions) 2009 2008 2007 Current: United States Federal $ (191 ) $ 453 $ 538 United States State (6 ) 34 54 Outside United States 594 949 834 $ 397 $ 1,436 $ 1,426 Deferred: United States Federal $ 247 $ 23 $ (3 ) United States State 13 1 8 Outside United States 86 (12 ) 38 Valuation allowance 27 (18 ) (21 ) $ 373 $ (6 ) $ 22 Consolidated taxes on income $ 770 $ 1,430 $ 1,448 A reconciliation of the United States statutory federal tax rate (35%)to the consolidated effective tax rate is: 2009 2008 2007 US statutory federal rate 35 % 35 % 35 % US state income taxes 1 1 Non-US income taxed at different rates (16 ) (13 ) (12 ) Effect of equity method investment (1 ) (1 ) Charges 1 Other (1 ) (1 ) Effective income tax rate 20 % 21 % 22 %

Leases and Lease Commitments

Leases and Lease Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Leases and Lease Commitments	16.Leases and Lease Commitments Total rental expense was $1.0 billion in 2009, $1.1 billion in 2008, and $913 million in 2007. Future minimum rental commitments under noncancelable operating leases for each of the next five years are as follows: (Stated in millions) 2010 $ 247 2011 187 2012 126 2013 78 2014 62 Thereafter 258 $ 958

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies	17.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 began a grand jury investigation and an associated regulatory inquiry, both related to certain Schlumberger operations in specified countries that are subject to United States trade and economic sanctions. Schlumberger is cooperating with the governmental authorities and is currently unable to predict the outcome of these matters. Schlumberger and its subsidiaries are party to various other legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. At this time the ultimate disposition of these proceedings is not determinable and therefore, it is not possible to estimate the amount of loss or range of possible losses that might result from an adverse judgment or settlement in any of these matters. However, in the opinion of management, any liability that might ensue would not be material in relation to Schlumbergers consolidated liquidity, financial position or future results of operations.

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information	18.Segment Information Schlumberger operates two business segments: Oilfield Services and WesternGeco. 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. The WesternGeco segment 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. Financial information for the years ended December31, 2009, 2008 and 2007, by segment, is as follows: (Stated in millions) 2009 Revenue Income before taxes Assets Depn. Amortn. Capital Expenditure OFS 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 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 62 (344 ) 7,660 31 5 Interest income 52 Interest expense (188 ) Charges credits (238 ) $ 22,702 $ 3,934 $ 33,465 $ 2,476 $ 2,395 (Stated in millions) 2008 Revenue Income before taxes Assets Depn. Amortn. Capital Expenditure OFS 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 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 43 (268 ) 6,031 8 1 Interest income 112 Interest expense (217 ) Charges credits (116 ) $ 27,163 $ 6,852 $ 32

Pension and Other Benefit Plans

Pension and Other Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Pension and Other Benefit Plans	19.Pension and Other Benefit Plans Pension Plans Schlumberger sponsors several defined benefit pension plans that cover substantially all U.S. employees hired prior to October1, 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 April1, 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 2009 2008 2007 2009 2008 2007 Discount rate 6.94 % 6.50 % 6.00 % 6.81 % 5.80 % 5.20 % Compensation increases 4.00 % 4.00 % 4.00 % 4.93 % 4.90 % 4.50 % Return on plan assets 8.50 % 8.50 % 8.50 % 8.35 % 8.00 % 8.00 % Net pension cost for 2009, 2008 and 2007 included the following components: (Stated in millions) US International 2009 2008 2007 2009 2008 2007 Service cost benefits earned during the period $ 52 $ 56 $ 58 $ 67 $ 33 $ 35 Interest cost on projected benefit obligation 143 130 120 189 58 52 Expected return on plan assets (166 ) (162 ) (147 ) (181 ) (75 ) (67 ) Amortization of net loss 29 13 26 11 18 Amortization of prior service cost 5 7 7 117 1 63 44 64 192 28 38 Curtailment charge 32 98 $ 95 $ 44 $ 64 $ 290 $ 28 $ 38 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

Supplementary Information

Supplementary Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplementary Information	20. Supplementary Information Cash paid for interest and income taxes was as follows: (Stated in millions) 2009 2008 2007 Interest $ 249 $ 289 $ 269 Income taxes $ 665 $ 1,158 $ 1,127 Accounts payable and accrued liabilities are summarized as follows: (Stated in millions) 2009 2008 Payroll, vacation and employee benefits $ 1,047 $ 1,126 Trade 1,793 1,872 Other 2,163 2,320 $ 5,003 $ 5,318 Interest and other income, net includes the following: (Stated in millions) 2009 2008 2007 Interest income $ 61 $ 119 $ 162 Equity in net earnings of affiliated companies 209 293 244 Other 3 (10 ) 25 $ 273 $ 402 $ 431 Allowance for doubtful accounts is as follows: (Stated in millions) 2009 2008 2007 Balance at beginning of year $ 133 $ 86 $ 115 Provision 54 65 9 Amounts written off (27 ) (18 ) (38 ) Balance at end of year $ 160 $ 133 $ 86 Discontinued Operations During the fourth quarter of 2009, Schlumberger recorded a net $22 million charge related to the resolution of a customs assessment pertaining to its former offshore contract drilling business, as well as the resolution of certain contingencies associated with other previously disposed of businesses. This amount is included in Income (Loss) from Discontinued Operations in the Consolidated Statement of Income. During the first quarter of 2008, Schlumberger recorded a gain of $38 million related to the resolution of a contingency associated with a previously disposed of business. This gain is included in Income (Loss) from Discontinued Operations in the Consolidated Statement of Income. Subsequent Events Subsequent events have been evaluated through February5, 2010, which is the date the financial statements were issued.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	SLB
Entity Registrant Name	SCHLUMBERGER LTD /NV/
Entity Central Index Key	0000087347
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,196,589,089
Entity Public Float			$64,700,000,000