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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income from continuing operations before taxes which were subject to United States and non-United States income taxes for each of the three years ended December 31, were as follows:

	(Stated in millions)

	2014		2013		2012
United States	$	1,990	$	1,904	$	1,980
Outside United States		5,649		6,787		4,979
	$	7,639	$	8,691	$	6,959

Components of Net Deferred Tax Assets

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

	(Stated in millions)

	2014			2013
Postretirement benefits	$	327		$	236
Intangible assets		(1,435	)		(1,502	)
Investments in non-US subsidiaries		(227	)		(282	)
Other, net		183			128
	$	(1,152	)	$	(1,420	)

Components of Consolidated Income Taxes

The components of Taxes on income were as follows:

	(Stated in millions)

	2014			2013			2012
Current:
United States - Federal	$	718		$	682		$	698
United States - State		51			60			53
Outside United States		1,380			1,211			1,025
	$	2,149		$	1,953		$	1,776
Deferred:
United States - Federal	$	(194	)	$	(109	)	$	(105	)
United States - State		(9	)		(4	)		(7	)
Outside United States		(12	)		34			22
Valuation allowance		(6	)		(26	)		14
	$	(221	)	$	(105	)	$	(76	)
	$	1,928		$	1,848		$	1,700

Reconciliation of US Statutory Federal Tax Rate

A reconciliation of the United States statutory federal tax rate (35%) to the consolidated effective tax rate is:

	2014			2013			2012
US statutory federal rate		35	%		35	%		35	%
Non-US income taxed at different rates		(11	)		(12	)		(10	)
Charges and credits (See Note 3)		3			(2	)		—
Other		(2	)		—			(1	)
		25	%		21	%		24	%

Reconciliation of Liabilities Associated with Uncertain Tax Provisions

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the years ended December 31, 2014, 2013 and 2012 is as follows:

	(Stated in millions)

	2014			2013			2012
Balance at beginning of year	$	1,452		$	1,453		$	1,353
Additions based on tax positions related to the current year		154			146			156
Additions for tax positions of prior years		96			109			98
Additions related to acquisitions		43			—			—
Impact of changes in exchange rates		(62	)		(47	)		12
Settlements with tax authorities		(27	)		(64	)		(17	)
Reductions for tax positions of prior years		(212	)		(109	)		(103	)
Reductions due to the lapse of the applicable statute of limitations		(42	)		(36	)		(46	)
Balance at end of year	$	1,402		$	1,452		$	1,453

Tax Years Subject to Examination by Tax Authorities

The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which Schlumberger operates:

Brazil		2009 - 2014
Canada		2007 - 2014
Ecuador		2001 - 2014
Mexico		2007 - 2014
Norway		2013 - 2014
Russia		2011 - 2014
Saudi Arabia		2001 - 2014
United Kingdom		2009 - 2014
United States		2011 - 2014

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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