Pension and Other Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Weighted-Average Assumed Discount Rate, Compensation Increases and Expected Long-Term Rate of Return on Plan Assets Used to Determine Net Pension Cost for US and International Plans

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
	2013			2012			2011			2013			2012			2011
Discount rate		4.25	%		5.00	%		5.50	%		4.38	%		4.95	%		5.47	%
Compensation increases		4.00	%		4.00	%		4.00	%		4.83	%		4.91	%		4.91	%
Return on plan assets		7.50	%		7.50	%		7.50	%		7.50	%		7.50	%		7.50	%

Net Pension Cost for Schlumberger Pension Plans and US Postretirement Medical Plan

Net pension cost for 2013, 2012 and 2011 included the following components:

	(Stated in millions)

	US									International
	2013			2012			2011			2013			2012			2011
Service cost - benefits earned during the period	$	80		$	68		$	59		$	127		$	86		$	64
Interest cost on projected benefit obligation		150			152			150			253			241			226
Expected return on plan assets		(200	)		(185	)		(170	)		(384	)		(328	)		(279	)
Amortization of net loss		122			95			89			155			76			31
Amortization of prior service cost		12			12			12			117			120			120
	$	164		$	142		$	140		$	268		$	195		$	162

The net periodic benefit cost for the US postretirement medical plan included the following components:

	(Stated in millions)

	2013			2012			2011
Service cost — benefits earned during the period	$	48		$	29		$	24
Interest cost on projected benefit obligation		56			58			57
Expected return on plan assets		(37	)		(30	)		(20	)
Amortization of net loss		23			16			13
Amortization of prior service credit		(4	)		(7	)		(11	)
	$	86		$	66		$	63

Weighted-Average Assumed Discount Rate and Compensation Increases Used to Determine Projected Benefit Obligations for US and International Plans

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans were as follows:

	US						International
	2013			2012			2013			2012
Discount rate		4.85	%		4.25	%		4.76	%		4.38	%
Compensation increases		4.00	%		4.00	%		4.80	%		4.83	%

Changes in Projected Benefit Obligation, Plan Assets and Funded Status of Plans

The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:

	(Stated in millions)

	US						International
	2013			2012			2013			2012
Change in Projected Benefit Obligations
Projected benefit obligation at beginning of year	$	3,558		$	3,073		$	5,798		$	4,666
Service cost		80			68			127			86
Interest cost		150			152			253			241
Contributions by plan participants		—			—			104			97
Actuarial (gains) losses		(232)			399			(168	)		786
Currency effect		—			—			30			62
Benefits paid		(138	)		(134	)		(163	)		(140	)
Projected benefit obligation at end of year	$	3,418		$	3,558		$	5,981		$	5,798
Change in Plan Assets
Plan assets at fair value at beginning of year	$	2,910		$	2,655		$	5,120		$	4,097
Actual return on plan assets		356			336			836			490
Currency effect		—			—			35			62
Company contributions		141			53			314			514
Contributions by plan participants		—			—			104			97
Benefits paid		(138	)		(134	)		(163	)		(140	)
Plan assets at fair value at end of year	$	3,269		$	2,910		$	6,246		$	5,120
(Unfunded Liability) / Asset	$	(149	)	$	(648	)	$	265		$	(678	)
Amounts Recognized in Balance Sheet
Postretirement Benefits	$	(149	)	$	(648	)	$	(5	)	$	(687	)
Other Assets		—			—			270			9
	$	(149	)	$	(648	)	$	265		$	(678	)
Amounts Recognized in Accumulated Other Comprehensive Loss
Actuarial losses	$	687		$	1,197		$	882		$	1,234
Prior service cost		78			90			418			598
	$	765		$	1,287		$	1,300		$	1,832
Accumulated benefit obligation	$	3,158		$	3,262		$	5,593		$	5,401

Weighted-Average Allocation of Plan Assets and Target Allocation by Asset Category

The weighted-average allocation of plan assets and the target allocations by asset category are as follows:

	US									International
	Target			2013			2012			Target			2013			2012
Equity securities		45 - 55	%		50	%		47	%		50 - 70	%		60	%		56	%
Debt securities		33 - 45			40			42			25 - 40			31			35
Cash and cash equivalents		0 - 3			2			2			0 - 3			3			3
Alternative investments		0 - 10			8			9			0 - 20			6			6
		100	%		100	%		100	%		100	%		100	%		100	%

Fair Value of Schlumberger's Pension Plan Assets

	(Stated in millions)

	US Plan Assets
	2013								2012
	Total		Level One		Level Two		Level Three		Total		Level One		Level Two		Level Three
Asset Category:
Cash and Cash Equivalents	$	77	$	24	$	53	$	—	$	56	$	5	$	51	$	—
Equity Securities:
US ^(a)		1,068		625		443				868		502		366
International^(b)		572		454		118				513		406		107
Debt Securities:
Corporate bonds^(c)		548				548				495				495
Government and government-related debt securities ^(d)		639		161		478				638		157		481
Collateralized mortgage obligations and mortgage backed securities^(e)		99				99				99				99
Alternative Investments:
Private equity ^(f)		204						204		185						185
Real estate ^(g)		62						62		56						56
Total	$	3,269	$	1,264	$	1,739	$	266	$	2,910	$	1,070	$	1,599	$	241

	(Stated in millions)

	International Plan Assets
	2013								2012
	Total		Level One		Level Two		Level Three		Total		Level One		Level Two		Level Three
Asset Category:
Cash and Cash Equivalents	$	267	$	127	$	140	$	—	$	168	$	157	$	11	$	—
Equity Securities:
US ^(a)		2,175		1,603		572				1,583		1,152		431
International^(b)		1,566		990		576				1,258		765		493
Debt Securities:
Corporate bonds^(c)		576				576				540				540
Government and government-related debt securities ^(d)		997		6		991				976				976
Collateralized mortgage obligations and mortgage backed securities ^(e)		301				301				289				289
Alternative Investments:
Private equity ^(f)		206						206		128						128
Real estate^(g)		60						60		55						55
Other		98						98		123						123
Total	$	6,246	$	2,726	$	3,156	$	364	$	5,120	$	2,074	$	2,740	$	306

^(a)	US equities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Active and passive management strategies are employed. Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks.

^(b)

International equities are invested in companies that are traded on exchanges outside the US and are well diversified by industry sector, country and equity style. Active and passive strategies are employed. The vast majority of the investments are made in companies in developed markets with a small percentage in emerging markets.

^(c)	Corporate bonds consist primarily of investment grade bonds from diversified industries.

^(d)	Government and government-related debt securities are comprised primarily of inflation protected US treasuries and, to a lesser extent, other government-related securities.

^(e)

Collateralized mortgage obligations and mortgage backed-securities are debt obligations that represent claims to the cash flows from pools of mortgage loans which are purchased from banks, mortgage companies, and other originators and then assembled into pools by governmental, quasi-governmental and private entities.

^(f)	Private equity includes investments in several fund of funds limited partnerships.

^(g)	Real estate primarily includes investments in real estate limited partnerships, concentrated in commercial real estate.

Defined Benefit Plan Weighted Average Assumptions Used in Calculating Benefit Obligation and Net Periodic Benefit Cost for US Postretirement Medical Plan

The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic benefit cost for the US postretirement medical plan were as follows:

	Benefit Obligation at December 31,						Net Periodic Benefit Cost for the year
	2013			2012			2013			2012			2011
Discount rate		4.85	%		4.25	%		4.25	%		5.00	%		5.50	%
Return on plan assets		—			—			7.00	%		7.00	%		7.00	%
Current medical cost trend rate		7.50	%		7.50	%		7.50	%		8.00	%		8.00	%
Ultimate medical cost trend rate		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate		2023			2023			2023			2018			2017

Changes in Accumulated Postretirement Benefit Obligation, Plan Assets and Funded Status

The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:

	(Stated in millions)

	2013			2012
Change in Accumulated Postretirement Benefit Obligation
Benefit obligation at beginning of year	$	1,410		$	1,188
Service cost		48			29
Interest cost		56			58
Contributions by plan participants		6			6
Actuarial (gains) losses		(232	)		171
Benefits paid		(41	)		(42	)
Benefit obligation at end of year	$	1,247		$	1,410
Change in Plan Assets
Plan assets at fair value at beginning of year	$	576		$	443
Company contributions		83			106
Contributions by plan participants		6			6
Benefits paid		(41	)		(42	)
Actual return on plan assets		107			63
Plan assets at fair value at end of year	$	731		$	576
Unfunded Liability	$	(516	)	$	(834	)
Amounts Recognized in Accumulated Other Comprehensive Loss
Actuarial losses	$	87		$	411
Prior service credit		(12	)		(16	)
	$	75		$	395

Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts reported for the US postretirement medical plan. A one percentage point change in assumed health care cost trend rates would have the following effects:

	(Stated in millions)

	One percentage point increase		One percentage point decrease
Effect on total service and interest cost components	$	47	$	(33	)
Effect on accumulated postretirement benefit obligation	$	267	$	(195	)

Expected Benefits to be Paid Under US and International Pension Plans and Postretirement Medical Plan

The expected benefits to be paid under the US and International pension plans as well as the postretirement medical plan (which is disclosed net of the annual Medicare Part D subsidy, which ranges from $4 million to $9 million per year) were as follows:

	(Stated in millions)

	Pension Benefits				Postretirement Medical Plan
	US		International		Postretirement Medical Plan
2014	$	147	$	204	$	46
2015		153		217		49
2016		160		236		53
2017		168		251		57
2018		177		275		61
2019 - 2023		1,038		1,562		376

Defined Benefit Plan, Amounts that will be Amortized from Accumulated Other Comprehensive Income (Loss) In Next Fiscal Year

Included in Accumulated other comprehensive loss at December 31, 2013 are non-cash pretax charges which have not yet been recognized in net periodic benefit cost. The estimated portion of each component of Accumulated other comprehensive loss which is expected to be recognized as a component of net periodic benefit cost during the year ending December 31, 2014 is as follows:

	(Stated in millions)

	Pension Plans		Postretirement Medical Plan
Net actuarial losses	$	153	$	2
Prior service cost (credit)	$	133	$	(4	)