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Income Tax
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Tax

12. Income Tax

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

 

     (Stated in millions)  
     Second Quarter      Six Months  
     2013      2012      2013      2012  

United States

   $ 510       $ 553       $ 931       $ 1,123   

Outside United States

     2,163         1,226         3,360         2,283   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,673       $ 1,779       $ 4,291       $ 3,406   
  

 

 

    

 

 

    

 

 

    

 

 

 

Schlumberger recorded net pretax credits of $664 million during the second quarter of 2013 ($53 million of charges in the US and $717 million of net credits outside of the US) and pretax charges of $22 million during the second quarter of 2012 ($11 million of charges in the US and $11 million outside of the US).

Schlumberger recorded net pretax credits of $572 million during the six months ended June 30, 2013 ($53 million of charges in the US and $625 million of net credits outside of the US) and pretax charges of $37 million during the six months ended June 30, 2012 ($22 million in the US and $15 million outside 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)  
     Jun. 30,
2013
    Dec. 31,
2012
 

Postretirement benefits, net

   $ 522      $ 543   

Intangible assets

     (1,484     (1,490

Investments in non-US subsidiaries

     (317     (317

Other, net

     123        114   
  

 

 

   

 

 

 
   $ (1,156   $ (1,150
  

 

 

   

 

 

 

The above deferred tax balances at June 30, 2013 and December 31, 2012 were net of valuation allowances relating to net operating losses in certain countries of $234 million and $256 million, respectively.

The components of consolidated Taxes on income were as follows:

 

     (Stated in millions)  
     Second Quarter     Six Months  
     2013     2012     2013     2012  

Current:

        

United States—Federal

   $ 203      $ 171      $ 319      $ 361   

United States—State

     20        18        35        35   

Outside United States

     298        263        546        466   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 521      $ 452      $ 900      $ 862   
  

 

 

   

 

 

   

 

 

   

 

 

 

Deferred:

        

United States—Federal

   $ (42   $ 9      $ (24   $ (24

United States—State

     (3     1        (3     (2

Outside United States

     (7     (27     2        (7

Valuation allowance

     (20     4        (20     4   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (72   $ (13   $ (45   $ (29
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 449      $ 439      $ 855      $ 833   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

     Second Quarter     Six Months  
     2013     2012     2013     2012  

US federal statutory rate

     35     35     35     35

US state income taxes

     —          1       1        1   

Non-US income taxed at different rates

     (12     (11     (12     (11

Charges (See Note 2)

     (6     —          (4     —     

Other

     —          —          —          (1
  

 

 

   

 

 

   

 

 

   

 

 

 

Effective income tax rate

     17     25     20     24