Income Tax

3 Months Ended

Mar. 31, 2012

Income Tax [Abstract]

Income Tax

11. Income Tax

Income before taxes which was subject to US and non-US income taxes was as follows:

	(Stated in millions)
	First Quarter
	2012		2011
United States	$	591	$	365
Outside United States		1,130		873
	$	1,721	$	1,238

During the first quarter of 2012, Schlumberger recorded pretax charges of $15 million ($11 million in the US and $4 million outside of the US).

Schlumberger recorded pretax charges of $34 million during the three months ended March 31, 2011 ($23 million in the US and $11 million outside of the US).

These charges are included in the table above and are more fully described in Note 2 – Charges and credits.

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

	(Stated in millions)
	Mar. 31, 2012			Dec. 31, 2011
Postretirement benefits, net	$	412		$	440
Intangible assets		(1,471	)		(1,498	)
Investments in non-US subsidiaries		(348	)		(349	)
Other, net		145			132
	$	(1,262	)	$	(1,275	)

The above deferred tax balances at March 31, 2012 and December 31, 2011 were net of valuation allowances relating to net operating losses in certain countries of $245 million and $239 million, respectively.

The components of consolidated Taxes on income were as follows:

	(Stated in millions)
	First Quarter
	2012			2011
Current:
United States - Federal	$	199		$	155
United States - State		18			16
Outside United States		212			64
	$	429		$	235
Deferred:
United States - Federal	$	(34	)	$	(29	)
United States - State		(3	)		3
Outside United States		19			93
Valuation allowance		—			(7	)
	$	(18	)	$	60
Consolidated taxes on income	$	411		$	295

A reconciliation of the US statutory federal tax rate of 35% to the consolidated effective income tax rate follows:

	First Quarter
	2012			2011
US federal statutory rate		35	%		35	%
US state income taxes		1			1
Non-US income taxed at different rates		(10	)		(11	)
Other		(2	)		(1	)
Effective income tax rate		24	%		24	%