Charges and Credits

9 Months Ended

Sep. 30, 2013

2. Charges and Credits

Schlumberger recorded the following charges and credits during the first nine months of 2013 and 2012:

2013

Second quarter 2013:

• Schlumberger recorded a pretax and after-tax gain of $1.028 billion as a result of the deconsolidation of its subsea business in connection with the formation of the OneSubsea joint venture with Cameron International Corporation (“Cameron”). Refer to Note 4 – Acquisitions for further details.

• Schlumberger recorded a $222 million pretax ($203 million after-tax) impairment charge relating to an investment in a company involved in developing drilling-related technology and a $142 million pretax and after-tax impairment charge relating to an investment in a contract drilling business.

The following is a summary of the charges and credits recorded during the second quarter of 2013:

	(Stated in millions)
									Consolidated Statement of Income Classification
	Pretax			Tax		Net			Consolidated Statement of Income Classification
Gain on formation of OneSubsea joint venture	$	(1,028	)	$	—	$	(1,028	)	Gain on formation of OneSubsea
Impairment of equity-method investments		364			19		345		Impairment & other
	$	(664	)	$	19	$	(683	)

First quarter 2013:

• Although the functional currency of Schlumberger’s operations in Venezuela is the US dollar, a portion of the transactions are denominated in local currency. In February 2013, Venezuela’s currency was devalued from the prior exchange rate of 4.3 Bolivar Fuertes per US dollar to 6.3 Bolivar Fuertes per US dollar. As a result of this devaluation, Schlumberger recorded a pretax and after-tax foreign currency loss of $92 million during the first quarter of 2013.

The following is a summary of the charges and credits recorded during the first nine months of 2013:

	(Stated in millions)
									Consolidated Statement of Income Classification
	Pretax			Tax		Net			Consolidated Statement of Income Classification
Gain on formation of OneSubsea joint venture	$	(1,028	)	$	—	$	(1,028	)	Gain on formation of OneSubsea
Impairment of equity-method investments		364			19		345		Impairment & other
Currency devaluation loss in Venezuela		92			—		92		Impairment & other
	$	(572	)	$	19	$	(591	)

2012

Schlumberger recorded the following merger and integration-related charges in connection with its 2010 acquisitions of Smith International, Inc. and Geoservices.

These amounts are classified in Merger & integration in the Consolidated Statement of Income.

	(Stated in millions)
	Pretax		Tax		Net
First Quarter	$	14	$	1	$	13
Second Quarter		22		1		21
Third Quarter		32		4		28
	$	68	$	6	$	62

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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