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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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

	(Stated in millions)

	2013		2012		2011
United States	$	1,904	$	1,980	$	2,246
Outside United States		6,787		4,979		3,772
	$	8,691	$	6,959	$	6,018

Components of Net Deferred Tax Assets

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

	(Stated in millions)

	2013			2012
Postretirement benefits	$	236		$	543
Intangible assets		(1,502	)		(1,490	)
Investments in non-US subsidiaries		(282	)		(317	)
Other, net		128			114
	$	(1,420	)	$	(1,150	)

Components of Consolidated Income Taxes

The components of Taxes on income were as follows:

	(Stated in millions)

	2013			2012			2011
Current:
United States - Federal	$	682		$	698		$	809
United States - State		60			53			42
Outside United States		1,211			1,025			667
	$	1,953		$	1,776		$	1,518
Deferred:
United States - Federal	$	(109	)	$	(105	)	$	(73	)
United States - State		(4	)		(7	)		(7	)
Outside United States		34			22			75
Valuation allowance		(26	)		14			(21	)
	$	(105	)	$	(76	)	$	(26	)
	$	1,848		$	1,700		$	1,492

Reconciliation of US Statutory Federal Tax Rate

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

	2013			2012			2011
US statutory federal rate		35	%		35	%		35	%
Non-US income taxed at different rates		(12	)		(10	)		(9	)
Charges and credits (See Note 3)		(2	)		—			—
Other		—			(1	)		(1	)
		21	%		24	%		25	%

Reconciliation of Liabilities Associated with Uncertain Tax Provisions

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2013, 2012 and 2011 is as follows:

	(Stated in millions)

	2013			2012			2011
Balance at beginning of year	$	1,453		$	1,353		$	1,338
Additions based on tax positions related to the current year		146			156			153
Additions for tax positions of prior years		109			98			49
Additions related to acquisitions		—			—			48
Impact of changes in exchange rates		(47	)		12			(18	)
Settlements with tax authorities		(64	)		(17	)		(77	)
Reductions for tax positions of prior years		(109	)		(103	)		(102	)
Reductions due to the lapse of the applicable statute of limitations		(36	)		(46	)		(38	)
Balance at end of year	$	1,452		$	1,453		$	1,353

Tax Years Subject to Examination by Tax Authorities

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

Brazil	2008 - 2013
Canada	2006 - 2013
Mexico	2007 - 2013
Norway	2013
Russia	2010 - 2013
Saudi Arabia	2001 - 2013
United Kingdom	2009 - 2013
United States	2008 - 2013

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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