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Pension and Other Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]  
Fair Value of Schlumberger's Pension Plan Assets
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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

 

 

2014

 

 

2013

 

 

2012

 

 

2014

 

 

2013

 

 

2012

 

Discount rate

 

4.85

%

 

 

4.25

%

 

 

5.50

%

 

 

4.76

%

 

 

4.38

%

 

 

4.95

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.00

%

 

 

4.80

%

 

 

4.83

%

 

 

4.91

%

Return on plan assets

 

7.25

%

 

 

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 2014, 2013 and 2012 included the following components:

  

(Stated in millions)

 

 

 

 

 

US

 

 

International

 

 

2014

 

 

2013

 

 

2012

 

 

2014

 

 

2013

 

 

2012

 

Service cost - benefits earned during the period

$

72

  

 

$

80

  

 

$

68

  

 

$

126

  

 

$

127

  

 

$

86

  

Interest cost on projected benefit obligation

 

164

  

 

 

150

  

 

 

152

  

 

 

288

  

 

 

253

  

 

 

241

  

Expected return on plan assets

 

(208

)

 

 

(200

)

 

 

(185

)

 

 

(450

)

 

 

(384

)

 

 

(328

)

Amortization of net loss

 

82

  

 

 

122

  

 

 

95

  

 

 

94

  

 

 

155

  

 

 

76

  

Amortization of prior service cost

 

12

  

 

 

12

  

 

 

12

  

 

 

120

  

 

 

117

  

 

 

120

  

 

$

122

  

 

$

164

  

 

$

142

  

 

$

178

  

 

$

268

  

 

$

195

  

 

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

 

 

(Stated in millions)

 

 

 

 

 

2014

 

 

2013

 

 

2012

 

Service cost — benefits earned during the period

$

43

  

 

$

48

  

 

$

29

  

Interest cost on projected benefit obligation

 

60

  

 

 

56

  

 

 

58

  

Expected return on plan assets

 

(45

)

 

 

(37

)

 

 

(30

)

Amortization of net loss

 

1

  

 

 

23

  

 

 

16

  

Amortization of prior service credit

 

(4

)

 

 

(4

)

 

 

(7

)

 

$

55

  

 

$

86

  

 

$

66

  

 

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

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Discount rate

 

4.15

%

 

 

4.85

%

 

 

4.07

%

 

 

4.76

%

Compensation increases

 

4.00

%

 

 

4.00

%

 

 

4.79

%

 

 

4.80

%

 

Changes In Projected Benefit Obligation Plan Assets And Funded Status Of Plans [Table Text Block]

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

  

(Stated in millions)

 

 

 

 

 

US

 

 

International

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Change in Projected Benefit Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

$

3,418

  

 

$

3,558

  

 

$

5,981

  

 

$

5,798

  

Service cost

 

72

  

 

 

80

  

 

 

126

  

 

 

127

  

Interest cost

 

164

  

 

 

150

  

 

 

288

  

 

 

253

  

Contributions by plan participants

 

—  

  

 

 

—  

  

 

 

122

  

 

 

104

  

Actuarial losses (gains)

 

627

  

 

 

(232

)  

 

 

1,000

  

 

 

(168

)  

Currency effect

 

 

  

 

 

—  

  

 

 

(90

)  

 

 

30

  

Benefits paid

 

(144

)

 

 

(138

)

 

 

(178

)

 

 

(163

)

Projected benefit obligation at end of year

$

4,137

  

 

$

3,418

  

 

$

7,249

  

 

$

5,981

  

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

3,269

  

 

$

2,910

  

 

$

6,246

  

 

$

5,120

  

Actual return on plan assets

 

339

  

 

 

356

  

 

 

502

  

 

 

836

  

Currency effect

 

  

  

 

 

—  

  

 

 

(102

)  

 

 

35

  

Company contributions

 

85

  

 

 

141

  

 

 

240

  

 

 

314

  

Contributions by plan participants

 

  

  

 

 

—  

  

 

 

122

  

 

 

104

  

Benefits paid

 

(144

)

 

 

(138

)

 

 

(178

)

 

 

(163

)

Plan assets at fair value at end of year

$

3,549

  

 

$

3,269

  

 

$

6,830

  

 

$

6,246

  

(Unfunded Liability) / Asset

$

(588

)

 

$

(149

)

 

$

(419

)

 

$

265

 

Amounts Recognized in Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Benefits

$

(588

)

 

$

(149

)

 

$

(546

)

 

$

(5

)

Other Assets

 

  

  

 

 

—  

  

 

 

127

  

 

 

270

  

 

$

(588

)

 

$

(149

)

 

$

(419

)

 

$

265

 

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses

$

1,104

  

 

$

687

  

 

$

1,658

  

 

$

882

  

Prior service cost

 

66

  

 

 

78

  

 

 

357

  

 

 

418

  

 

$

1,170

  

 

$

765

  

 

$

2,015

  

 

$

1,300

  

Accumulated benefit obligation

$

3,805

  

 

$

3,158

  

 

$

6,793

  

 

$

5,593

  

 

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

 

 

2014

 

 

2013

 

 

Target

 

 

2014

 

 

2013

 

Equity securities

 

37 - 56

 

 

48

 

 

50

 

 

50 - 71

 

 

58

 

 

60

Debt securities

 

35 - 62

  

 

 

42

  

 

 

40

  

 

 

20 - 35

  

 

 

32

  

 

 

31

  

Cash and cash equivalents

 

     0  -  3

  

 

 

2

  

 

 

2

  

 

 

    0  -  5

  

 

 

4

  

 

 

3

  

Alternative investments

 

0  -  8

  

 

 

8

  

 

 

8

  

 

 

0 - 25

  

 

 

6

  

 

 

6

  

 

 

100

 

 

100

 

 

100

 

 

100

 

 

100

 

 

100

 

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

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

 

2012

 

Discount rate

 

4.15

%

 

 

4.85

%

 

 

4.85

%

 

 

4.25

%

 

 

5.00

%

Return on plan assets

 

  

  

 

 

—  

  

 

 

7.00

%

 

 

7.00

%

 

 

7.00

%

Current medical cost trend rate

 

7.00

%

 

 

7.25

%

 

 

7.25

%

 

 

7.50

%

 

 

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

  

 

 

2023

  

 

 

2018

  

 

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)

 

 

 

 

 

2014

 

 

2013

 

Change in Accumulated Postretirement Benefit Obligation

 

 

 

 

 

 

 

Benefit obligation at beginning of year

$

1,247

  

 

$

1,410

  

Service cost

 

43

  

 

 

48

  

Interest cost

 

60

  

 

 

56

  

Contributions by plan participants

 

6

  

 

 

6

  

Actuarial losses (gains)

 

210

  

 

 

(232

Benefits paid

 

(46

)

 

 

(41

)

Plan amendments

 

(299

)

 

 

 

Benefit obligation at end of year

$

1,221

  

 

$

1,247

  

Change in Plan Assets

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

$

731

  

 

$

576

  

Company contributions

 

65

  

 

 

83

  

Contributions by plan participants

 

6

  

 

 

6

  

Benefits paid

 

(46

)

 

 

(41

)

Actual return on plan assets

 

98

  

 

 

107

  

Plan assets at fair value at end of year

$

854

  

 

$

731

  

Unfunded Liability

$

(367

)

 

$

(516

)

Amounts Recognized in Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

Actuarial losses

$

242

  

 

$

87

  

Prior service credit

 

(307

)

 

 

(12

)

 

$

(65

)  

 

$

75

  

 

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

$

42

  

  

$

(17

)

Effect on accumulated postretirement benefit obligation

$

37

  

  

$

(33

)

 

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 were as follows:

 

 

(Stated in millions)

 

 

 

 

 

Pension Benefits

 

  

Postretirement
Medical Plan

 

 

US

 

  

International

 

  

 

2015

$

155

  

  

$

222

  

  

$

46

  

2016

 

162

  

  

 

240

  

  

 

49

  

2017

 

171

  

  

 

256

  

  

 

52

  

2018

 

181

  

  

 

274

  

  

 

56

  

2019

 

190

  

  

 

290

  

  

 

59

  

2020 - 2024

 

1,112

  

  

 

1,675

  

  

 

344

  

 

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, 2014 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, 2015 is as follows:

 

 

(Stated in millions)

 

 

 

 

 

Pension
Plans

 

  

Postretirement
Medical Plan

 

Net actuarial losses

$

274

  

  

$

17

  

Prior service cost (credit)

$

133

  

  

$

(32

)