3. Charges and Credits

Schlumberger recorded the following charges and credits in continuing operations during 2013, 2012 and 2011:

2013

·	During the fourth quarter, Schlumberger recorded a $152 million pretax ($122 million after-tax) provision relating to accounts receivable from a client in Brazil who filed for bankruptcy.

—

During the second quarter, Schlumberger recorded a pretax and after-tax gain of $1.028 billion as a result of the deconsolidation of its subsea business in connection with the formation of the OneSubsea joint venture with Cameron International Corporation (“Cameron”). Refer to Note 4 – Acquisitions for further details.

—

During the second quarter, Schlumberger recorded a $222 million pretax ($203 million after-tax) impairment charge relating to an investment in a company involved in developing drilling-related technology and a $142 million pretax and after-tax impairment charge relating to an investment in a contract drilling business.

—

Although the functional currency of Schlumberger’s operations in Venezuela is the US dollar, a portion of the transactions are denominated in local currency. In February 2013, Venezuela’s currency was devalued from the prior exchange rate of 4.3 Bolivar Fuertes per US dollar to 6.3 Bolivar Fuertes per US dollar. As a result of this devaluation, Schlumberger recorded a pretax and after-tax foreign currency loss of $92 million during the first quarter of 2013.

The following is a summary of these charges and credits:

	(Stated in millions)

	Pretax			Tax		Net			Consolidated Statement of Income Classification
Gain on formation of OneSubsea joint venture	$	(1,028	)	$	—	$	(1,028	)	Gain on formation of OneSubsea
Impairment of equity-method investments		364			19		345		Impairment & other
Provision for accounts receivable		152			30		122		Cost of revenue
Currency devaluation loss in Venezuela		92			—		92		Impairment & other
	$	(420	)	$	49	$	(469	)

2012

—	Schlumberger recorded pretax merger and integration-related charges throughout 2012 of $128 million ($112 million after-tax) in connection with its 2010 acquisitions of Smith International, Inc. (“Smith”) and Geoservices.

—	During the fourth quarter, Schlumberger recorded a pretax charge of $33 million ($27 million after-tax) relating to severance in connection with an initiative to rationalize global overhead costs.

The following is a summary of these charges:

	(Stated in millions)

	Pretax		Tax		Net		Consolidated Statement of Income Classification
Merger-related integration costs	$	128	$	16	$	112	Merger & integration
Workforce reduction		33		6		27	Impairment & other
	$	161	$	22	$	139

2011

—	Schlumberger recorded pretax merger and integration-related charges throughout 2011 of $113 million ($95 million after-tax) in connection with its 2010 acquisitions of Smith and Geoservices.

—	During the fourth quarter, Schlumberger recorded a pretax and after-tax charge of $60 million relating to certain assets in Libya that were no longer recoverable as a result of the political unrest there.

—

During the second quarter, Schlumberger made a $50 million grant to the Schlumberger Foundation to support the Foundation’s Faculty for the Future program, which supports talented women scientists from the developing world by helping them pursue advanced graduate studies in scientific disciplines at leading universities worldwide. As a result, Schlumberger recorded a $50 million charge ($40 million after-tax).

The following is a summary of these charges:

	(Stated in millions)

	Pretax		Tax		Net		Consolidated Statement of Income Classification
Merger-related integration costs	$	113	$	18	$	95	Merger & integration
Donation to the Schlumberger Foundation		50		10		40	General & administrative
Write-off of assets in Libya		60		—		60	Cost of revenue
	$	223	$	28	$	195