Summary
SLB LIMITED/NV (SLB) filed an 8-K report on July 18, 2008, primarily to announce its second-quarter 2008 financial results. The filing includes a press release and supplemental information detailing these results. Importantly, the report introduces a non-GAAP financial measure, 'net debt,' defined as gross debt less cash, short-term investments, and fixed income investments held to maturity. Management believes that net debt offers valuable insight into the company's indebtedness by considering liquid assets available for debt repayment. While this metric is presented to provide additional context, investors are reminded that it should be considered alongside, and not as a replacement for, traditional GAAP measures such as total debt and cash flows. The exhibits attached to this 8-K, specifically the press release and supplemental information, contain the detailed financial performance data for the second quarter of 2008.
Key Highlights
- 1SLB announced its second quarter 2008 financial results via an 8-K filing on July 18, 2008.
- 2The filing includes a press release (Exhibit 99.1) and supplemental information (Exhibit 99.2) detailing Q2 2008 performance.
- 3A non-GAAP financial measure, 'net debt,' is introduced and defined in the report.
- 4Net debt is calculated as gross debt minus cash, short-term investments, and held-to-maturity fixed income investments.
- 5Management views net debt as a useful indicator of the company's leverage, reflecting available liquid assets for debt servicing.
- 6Investors are advised to consider net debt in conjunction with, not as a substitute for, GAAP financial measures.
- 7The report is signed by Howard Guild, Chief Accounting Officer, on July 18, 2008.