|
|
Item
|
Page
|
|
PART I
|
||
PART II
|
||
PART III
|
||
PART IV
|
||
§
|
the impact of the Macondo well incident, claims, settlement and related matters,
|
§
|
the impact of the Brazil Frade field incident and related matters,
|
§
|
our results of operations and cash flow from operations, including revenues and expenses,
|
§
|
the offshore drilling market, including the impact of enhanced regulations in the jurisdictions in which we operate, supply and demand, utilization rates, dayrates, customer drilling programs, commodity prices, stacking of rigs, reactivation of rigs, effects of new rigs on the market and effects of declines in commodity prices and the downturn in the global economy or market outlook for our various geographical operating sectors and classes of rigs,
|
§
|
customer contracts, including contract backlog, force majeure provisions, contract commencements, contract extensions, contract terminations, contract option exercises, contract revenues, contract awards and rig mobilizations,
|
§
|
liquidity and adequacy of cash flows for our obligations,
|
§
|
debt levels, including impacts of a financial and economic downturn,
|
§
|
uses of excess cash, including the payment of dividends and other distributions and debt retirement,
|
§
|
newbuild, upgrade, shipyard and other capital projects, including completion, delivery and commencement of operation dates, expected downtime and lost revenue, the level of expected capital expenditures and the timing and cost of completion of capital projects,
|
§
|
pending or possible transactions, including the timing, benefits and terms thereof,
|
§
|
the cost and timing of acquisitions and the proceeds and timing of dispositions,
|
§
|
tax matters, including our effective tax rate, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, including those associated with our activities in Brazil, Norway and the United States
,
|
§
|
legal and regulatory matters, including results and effects of legal proceedings and governmental audits and assessments, outcomes and effects of internal and governmental investigations, customs and environmental matters,
|
§
|
insurance matters, including adequacy of insurance, renewal of insurance, insurance proceeds and cash investments of our wholly owned captive insurance company,
|
§
|
effects of accounting changes and adoption of accounting policies, and
|
§
|
investments in recruitment, retention and personnel development initiatives, pension plan and other postretirement benefit plan contributions, the timing of severance payments and benefit payments.
|
§
“anticipates”
|
§
“could”
|
§
“forecasts”
|
§
“might”
|
§
“projects”
|
§
“believes”
|
§
“estimates”
|
§
“intends”
|
§
“plans”
|
§
“scheduled”
|
§
“budgets”
|
§
“expects”
|
§
“may”
|
§
“predicts”
|
§
“should”
|
§
|
those described under “Item 1A. Risk Factors”,
|
§
|
the adequacy of and access to sources of liquidity,
|
§
|
our inability to obtain contracts for our rigs that do not have contracts,
|
§
|
our inability to renew contracts at comparable dayrates,
|
§
|
operational performance,
|
§
|
the impact of regulatory changes,
|
§
|
the cancellation of contracts currently included in our reported contract backlog,
|
§
|
shipyard, construction and other delays,
|
§
|
increased political and civil unrest,
|
§
|
the effect and results of litigation, regulatory matters, settlements, audits, assessments and contingencies, and
|
§
|
other factors discussed in this annual report and in our other filings with the U.S. Securities and Exchange Commission (“SEC”), which are available free of charge on the SEC website at
www.sec.gov
.
|
Item 1
.
|
Business
|
§
|
48 High-Specification Floaters, which are comprised of:
|
§
|
27 Ultra-Deepwater Floaters;
|
§
|
14
Deepwater Floaters; and
|
§
|
Seven Harsh Environment Floaters;
|
§
|
25 Midwater Floaters; and
|
§
|
Nine High-Specification Jackups.
|
Water
|
Drilling
|
||||
depth
|
depth
|
||||
Expected
|
capacity
|
capacity
|
Contracted
|
||
Name
|
Type
|
completion
|
(in feet)
|
(in feet)
|
location
|
Ultra
-
Deepwater Floaters
|
|||||
Deepwater Asgard
|
HSD
|
2Q 2014
|
12,000
|
40,000
|
To be determined
|
Deepwater Invictus
|
HSD
|
2Q 2014
|
12,000
|
40,000
|
U.S. Gulf
|
DSME 12000 Drillship TBN1
|
HSD
|
4Q 2015
|
12,000
|
40,000
|
To be determined
|
DSME 12000 Drillship TBN2
|
HSD
|
2Q 2016
|
12,000
|
40,000
|
To be determined
|
DSME 12000 Drillship TBN3
|
HSD
|
4Q 2016
|
12,000
|
40,000
|
To be determined
|
DSME 12000 Drillship TBN4
|
HSD
|
1Q 2017
|
12,000
|
40,000
|
To be determined
|
High
-
Specification Jackups
|
|||||
Transocean Siam Driller
|
Jackup
|
1Q 2013
|
350
|
35,000
|
Thailand
|
Transocean Andaman
|
Jackup
|
2Q 2013
|
350
|
35,000
|
Thailand
|
Transocean Ao Thai
|
Jackup
|
4Q 2013
|
350
|
35,000
|
Thailand
|
|
“HSD” means high-specification drillship.
|
Year
|
Water
|
Drilling
|
|||
entered
|
depth
|
depth
|
|||
service/
|
capacity
|
capacity
|
|||
Name
|
Type
|
upgraded (a)
|
(in feet)
|
(in feet)
|
Location
|
Ultra
-
Deepwater Floaters (27)
|
|||||
Discoverer Clear Leader (b) (c) (d)
|
HSD
|
2009
|
12,000
|
40,000
|
U.S. Gulf
|
Discoverer Americas (b) (c) (d) (e)
|
HSD
|
2009
|
12,000
|
40,000
|
U.S. Gulf
|
Discoverer Inspiration (b) (c) (d) (e)
|
HSD
|
2010
|
12,000
|
40,000
|
U.S. Gulf
|
Deepwater Champion (b) (c) (e)
|
HSD
|
2011
|
12,000
|
40,000
|
U.S. Gulf
|
Petrobras 10000 (b) (c)
|
HSD
|
2009
|
12,000
|
37,500
|
Brazil
|
Dhirubhai Deepwater KG1 (b) (e)
|
HSD
|
2009
|
12,000
|
35,000
|
India
|
Dhirubhai Deepwater KG2 (b) (e)
|
HSD
|
2010
|
12,000
|
35,000
|
India
|
Discoverer India (b) (c) (d)
|
HSD
|
2010
|
12,000
|
40,000
|
U.S. Gulf
|
Discoverer Deep Seas (b) (c) (d)
|
HSD
|
2001
|
10,000
|
35,000
|
U.S. Gulf
|
Discoverer Enterprise (b) (c) (d)
|
HSD
|
1999
|
10,000
|
35,000
|
U.S. Gulf
|
Discoverer Spirit (b) (c) (d)
|
HSD
|
2000
|
10,000
|
35,000
|
U.S. Gulf
|
GSF C.R. Luigs (b)
|
HSD
|
2000
|
10,000
|
35,000
|
U.S. Gulf
|
GSF Jack Ryan (b)
|
HSD
|
2000
|
10,000
|
35,000
|
Nigeria
|
Deepwater Discovery (b)
|
HSD
|
2000
|
10,000
|
30,000
|
Brazil
|
Deepwater Frontier (b)
|
HSD
|
1999
|
10,000
|
30,000
|
Australia
|
Deepwater Millennium (b)
|
HSD
|
1999
|
10,000
|
30,000
|
Kenya
|
Deepwater Pathfinder (b)
|
HSD
|
1998
|
10,000
|
30,000
|
U.S. Gulf
|
Deepwater Expedition (b)
|
HSD
|
1999
|
8,500
|
30,000
|
Saudi Arabia
|
Cajun Express (b) (f)
|
HSS
|
2001
|
8,500
|
35,000
|
Brazil
|
Deepwater Nautilus (g)
|
HSS
|
2000
|
8,000
|
30,000
|
U.S. Gulf
|
GSF Explorer (b)
|
HSD
|
1972/1998
|
7,800
|
30,000
|
Idle
|
Discoverer Luanda (b) (c) (d) (h)
|
HSD
|
2010
|
7,500
|
40,000
|
Angola
|
GSF Development Driller I (b) (c)
|
HSS
|
2005
|
7,500
|
37,500
|
U.S. Gulf
|
GSF Development Driller II (b) (c)
|
HSS
|
2005
|
7,500
|
37,500
|
U.S. Gulf
|
Development Driller III (b) (c)
|
HSS
|
2009
|
7,500
|
37,500
|
U.S. Gulf
|
Sedco Energy (b) (f)
|
HSS
|
2001
|
7,500
|
35,000
|
Ghana
|
Sedco Express (b) (f)
|
HSS
|
2001
|
7,500
|
35,000
|
Nigeria
|
Deepwater Floaters (14)
|
|||||
Deepwater Navigator (b)
|
HSD
|
1971/2000
|
7,200
|
25,000
|
Brazil
|
Discoverer Seven Seas (b)
|
HSD
|
1976/1997
|
7,000
|
25,000
|
Sri Lanka
|
Transocean Marianas (g)
|
HSS
|
1979/1998
|
7,000
|
30,000
|
Namibia
|
Sedco 702 (b)
|
HSS
|
1973/2007
|
6,500
|
25,000
|
Nigeria
|
Sedco 706 (b)
|
HSS
|
1976/2008
|
6,500
|
25,000
|
Brazil
|
Sedco 707 (b)
|
HSS
|
1976/1997
|
6,500
|
25,000
|
Brazil
|
GSF Celtic Sea (g)
|
HSS
|
1982/1998
|
5,750
|
25,000
|
Angola
|
Jack Bates (g)
|
HSS
|
1986/1997
|
5,400
|
30,000
|
Australia
|
M.G. Hulme, Jr. (g)
|
HSS
|
1983/1996
|
5,000
|
25,000
|
India
|
Sedco 709 (b)
|
HSS
|
1977/1999
|
5,000
|
25,000
|
Stacked
|
Transocean Richardson (g)
|
HSS
|
1988
|
5,000
|
25,000
|
Stacked
|
Sedco 710 (b)
|
HSS
|
1983/2001
|
4,500
|
25,000
|
Brazil
|
Sovereign Explorer (g)
|
HSS
|
1984
|
4,500
|
25,000
|
Stacked
|
Transocean Rather (g)
|
HSS
|
1988
|
4,500
|
25,000
|
Angola
|
Harsh Environment Floaters (7)
|
|||||
Transocean Spitsbergen (b) (c)
|
HSS
|
2010
|
10,000
|
30,000
|
Norwegian N. Sea
|
Transocean Barents (b) (c)
|
HSS
|
2009
|
10,000
|
30,000
|
Norwegian N. Sea
|
Henry Goodrich (g)
|
HSS
|
1985/2007
|
5,000
|
30,000
|
Canada
|
Transocean Leader (g)
|
HSS
|
1987/1997
|
4,500
|
25,000
|
Norwegian N. Sea
|
Paul B, Loyd, Jr.(g)
|
HSS
|
1990
|
2,000
|
25,000
|
U.K. N. Sea
|
Transocean Arctic (g)
|
HSS
|
1986
|
1,650
|
25,000
|
Norwegian N. Sea
|
Polar Pioneer (g)
|
HSS
|
1985
|
1,500
|
25,000
|
Norwegian N. Sea
|
|
“HSD” means high-specification drillship.
|
|
“HSS” means high-specification semisubmersible.
|
(a)
|
Dates shown are the original service date and the date of the most recent upgrade, if any.
|
(b)
|
Dynamically positioned.
|
(c)
|
Dual-activity.
|
(d)
|
Enterprise-class or Enhanced Enterprise-class rig.
|
(e)
|
Pledged as collateral for certain debt instruments or credit facilities.
|
(f)
|
Express-class rig.
|
(g)
|
Moored floaters.
|
(h)
|
Owned through our 65 percent interest in Angola Deepwater Drilling Company Limited and pledged as collateral for the debt of the joint venture company.
|
Year
|
Water
|
Drilling
|
|||
entered
|
depth
|
depth
|
|||
service/
|
capacity
|
capacity
|
|||
Name
|
Type
|
upgraded (a)
|
(in feet)
|
(in feet)
|
Location
|
Sedco 700
|
OS
|
1973/1997
|
3,600
|
25,000
|
Stacked
|
Transocean Amirante
|
OS
|
1978/1997
|
3,500
|
25,000
|
Egypt
|
Transocean Legend
|
OS
|
1983
|
3,500
|
25,000
|
Australia
|
GSF Arctic I
|
OS
|
1983/1996
|
3,400
|
25,000
|
Idle
|
C. Kirk Rhein, Jr.
|
OS
|
1976/1997
|
3,300
|
25,000
|
Stacked
|
Transocean Driller
|
OS
|
1991
|
3,000
|
25,000
|
Brazil
|
GSF Rig 135
|
OS
|
1983
|
2,800
|
25,000
|
Nigeria
|
GSF Rig 140
|
OS
|
1983
|
2,800
|
25,000
|
India
|
Falcon 100
|
OS
|
1974/1999
|
2,400
|
25,000
|
Brazil
|
GSF Aleutian Key
|
OS
|
1976/2001
|
2,300
|
25,000
|
Stacked
|
Sedco 703
|
OS
|
1973/1995
|
2,000
|
25,000
|
Stacked
|
GSF Arctic III
|
OS
|
1984
|
1,800
|
25,000
|
U.K. N. Sea
|
Sedco 711
|
OS
|
1982
|
1,800
|
25,000
|
U.K. N. Sea
|
Transocean John Shaw
|
OS
|
1982
|
1,800
|
25,000
|
U.K. N. Sea
|
Sedco 712
|
OS
|
1983
|
1,600
|
25,000
|
U.K. N. Sea
|
Sedco 714
|
OS
|
1983/1997
|
1,600
|
25,000
|
U.K. N. Sea
|
Actinia
|
OS
|
1982
|
1,500
|
25,000
|
India
|
GSF Grand Banks
|
OS
|
1984
|
1,500
|
25,000
|
Canada
|
Sedco 601
|
OS
|
1983
|
1,500
|
25,000
|
Stacked
|
Sedneth 701
|
OS
|
1972/1993
|
1,500
|
25,000
|
Nigeria
|
Transocean Prospect
|
OS
|
1983/1992
|
1,500
|
25,000
|
U.K. N. Sea
|
Transocean Searcher
|
OS
|
1983/1988
|
1,500
|
25,000
|
Norwegian N. Sea
|
Transocean Winner
|
OS
|
1983
|
1,500
|
25,000
|
Norwegian N. Sea
|
J. W. McLean
|
OS
|
1974/1996
|
1,250
|
25,000
|
Stacked
|
Sedco 704
|
OS
|
1974/1993
|
1,000
|
25,000
|
U.K. N. Sea
|
|
“OS” means other semisubmersible.
|
(a)
|
Dates shown are the original service date and the date of the most recent upgrade, if any.
|
Year
|
Water
|
Drilling
|
|||
entered
|
depth
|
depth
|
|||
service/
|
capacity
|
capacity
|
|||
Name
|
upgraded (a)
|
(in feet)
|
(in feet)
|
Location
|
|
Transocean Honor (b)
|
2012
|
400
|
30,000
|
Angola
|
|
GSF Constellation I
|
2003
|
400
|
30,000
|
Indonesia
|
|
GSF Constellation II
|
2004
|
400
|
30,000
|
Gabon
|
|
GSF Galaxy I
|
1991/2001
|
400
|
30,000
|
U.K. N. Sea
|
|
GSF Galaxy II
|
1998
|
400
|
30,000
|
U.K. N. Sea
|
|
GSF Galaxy III
|
1999
|
400
|
30,000
|
U.K. N. Sea
|
|
GSF Magellan
|
1992
|
350
|
30,000
|
Nigeria
|
|
GSF Monarch
|
1986
|
350
|
30,000
|
Denmark
|
|
GSF Monitor
|
1989
|
350
|
30,000
|
Nigeria
|
(a)
|
Dates shown are the original service date and the date of the most recent upgrades, if any.
|
(b)
|
Owned through our 70 percent interest in Transocean Drilling Services Offshore Inc.
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating revenues
|
||||||||||||
U.S.
|
$
|
2,472
|
$
|
1,971
|
$
|
1,937
|
||||||
Norway
|
1,174
|
897
|
765
|
|||||||||
Brazil
|
1,114
|
1,019
|
1,288
|
|||||||||
U.K.
|
1,028
|
1,099
|
1,097
|
|||||||||
Other countries (a)
|
3,408
|
3,041
|
2,862
|
|||||||||
Total operating revenues
|
$
|
9,196
|
$
|
8,027
|
$
|
7,949
|
(a)
|
Other countries represents countries in which we operate that individually had operating revenues representing less than 10 percent of total operating revenues earned for any of the periods presented.
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Long
-
lived assets
|
||||||||
U.S.
|
$
|
7,395
|
$
|
6,553
|
||||
Brazil
|
2,285
|
2,185
|
||||||
Norway
|
2,072
|
2,067
|
||||||
Other countries (a)
|
9,128
|
9,983
|
||||||
Total long
-
lived assets
|
$
|
20,880
|
$
|
20,788
|
(a)
|
Other countries represents countries in which we operate that individually had long-lived assets representing less than 10 percent of total long-lived assets for any of the periods presented.
|
§
|
worldwide demand for oil and gas
,
including economic activity in the U.S. and other large energy
-
consuming markets;
|
§
|
the ability of the Organization of the Petroleum Exporting Countries (“OPEC”) to set and maintain production levels, productive spare capacity and pricing;
|
§
|
the level of production in non
-
OPEC countries;
|
§
|
the policies of various governments regarding exploration and development of their oil and gas reserves;
|
§
|
advances in exploration and development technology;
|
§
|
the discovery rate of new oil and gas reserves;
|
§
|
the rate of decline of existing oil and gas reserves;
|
§
|
laws and regulations related to environmental matters, including those addressing alternative energy sources and the risks of global climate change;
|
§
|
the development and exploitation of alternative fuels;
|
§
|
the development of new technology to exploit oil and gas reserves, such as shale oil;
|
§
|
adverse weather conditions; and
|
§
|
the worldwide military and political environment, including uncertainty or instability resulting from an escalation or outbreak of armed hostilities, civil unrest or other crises in the Middle East or other geographic areas or acts of terrorism
.
|
§
|
we may not be able to obtain financing in the future for working capital, capital expenditures, acquisitions, debt service requirements, distributions, share repurchases, or other purposes;
|
§
|
we may not be able to use operating cash flow in other areas of our business because we must dedicate a substantial portion of these funds to service the debt;
|
§
|
we could become more vulnerable to general adverse economic and industry conditions, including increases in interest rates, particularly given our substantial indebtedness, some of which bears interest at variable rates;
|
§
|
we may not be able to meet financial ratios or satisfy certain other conditions included in our bank credit agreements
,
which could result in our inability to meet requirements for borrowings under our bank credit agreements or a default under these agreements and trigger cross default provisions in our other debt instruments; and
|
§
|
we may be less able to take advantage of significant business opportunities and to react to changes in market or industry conditions than our less levered competitors.
|
§
|
limit our ability to access debt markets, including for the purpose of refinancing our existing debt;
|
§
|
cause us to refinance or issue debt with less favorable terms and conditions, which debt may require collateral and restrict, among other things, our ability to pay distributions or repurchase shares;
|
§
|
increase certain fees under our credit facilities and interest rates under agreements governing certain of our senior notes;
|
§
|
cause additional indebtedness of approximately $30 million to become due;
|
§
|
negatively impact current and prospective customers’ willingness to transact business with us;
|
§
|
impose additional insurance, guarantee and collateral requirements;
|
§
|
limit our access to bank and third-party guarantees, surety bonds and letters of credit; and
|
§
|
suppliers and financial institutions may lower or eliminate the level of credit provided through payment terms or intraday funding when dealing with us thereby increasing the need for higher levels of cash on hand, which would decrease our ability to repay debt balances.
|
§
|
availability of suppliers to recertify equipment for enhanced regulations;
|
§
|
shipyard availability, failures and difficulties;
|
§
|
shortages of equipment, materials or skilled labor;
|
§
|
unscheduled delays in the delivery of ordered materials and equipment;
|
§
|
design and engineering problems, including those relating to the commissioning of newly designed equipment;
|
§
|
latent damages or deterioration to hull, equipment and machinery in excess of engineering estimates and assumptions;
|
§
|
unanticipated actual or purported change orders;
|
§
|
disputes with shipyards and suppliers;
|
§
|
failure or delay of third-party vendors or service providers;
|
§
|
strikes, labor disputes and work stoppages;
|
§
|
customer acceptance delays;
|
§
|
adverse weather conditions, including damage caused by such conditions;
|
§
|
terrorist acts, war, piracy and civil unrest;
|
§
|
unanticipated cost increases; and
|
§
|
difficulty in obtaining necessary permits or approvals.
|
§
|
breakdowns of equipment and other unforeseen engineering problems;
|
§
|
work stoppages, including labor strikes;
|
§
|
shortages of material and skilled labor;
|
§
|
surveys by government and maritime authorities;
|
§
|
periodic classification surveys;
|
§
|
severe weather, strong ocean currents or harsh operating conditions; and
|
§
|
force majeure events.
|
§
|
terrorist acts, war, piracy and civil unrest;
|
§
|
seizure, expropriation or nationalization of our equipment;
|
§
|
expropriation or nationalization of our customers’ property;
|
§
|
repudiation or nationalization of contracts;
|
§
|
imposition of trade barriers;
|
§
|
import
-
export quotas;
|
§
|
wage and price controls;
|
§
|
changes in law and regulatory requirements, including changes in interpretation and enforcement;
|
§
|
involvement in judicial proceedings in unfavorable jurisdictions;
|
§
|
damage to our equipment or violence directed at our employees, including kidnappings;
|
§
|
complications associated with supplying, repairing and replacing equipment in remote locations;
|
§
|
the inability to move income or capital; and
|
§
|
currency exchange fluctuations.
|
§
|
classify our board into three
classes of directors, each of which serve for staggered three-year periods;
|
§
|
provide that the board of directors is authorized, subject to obtaining shareholder approval every two years, at any time during a maximum two
-
year period, which is currently scheduled to expire on May 13, 2013, to issue up to a specified number of shares, currently approximately 7.61 percent of the share capital registered in the commercial register
,
and to limit or withdraw the preemptive rights of existing shareholders in various circumstances, including (1) following a shareholder or group of shareholders acting in concert having acquired in excess of 15
percent of the share capital registered in the commercial register without having submitted a takeover proposal to shareholders that is recommended by the board of directors or (2) for purposes of the defense of an actual, threatened or potential unsolicited takeover bid, in relation to which the board of directors has, upon consultation with an independent financial adviser retained by the board of directors, not recommended acceptance to the shareholders;
|
§
|
provide for a conditional share capital that authorizes the issuance of additional shares up to a maximum amount of 50 percent of the share capital registered in the commercial register without obtaining additional shareholder approval through: (1) the exercise of conversion, exchange, option, warrant or similar rights for the subscription of shares granted in connection with bonds, options, warrants or other securities newly or already issued in national or international capital markets or new or already existing contractual obligations by or of any of our subsidiaries; or (2) in connection with the issuance of shares, options or other share-based awards;
|
§
|
provide that any shareholder who wishes to propose any business or to nominate a person or persons for election as director at any annual meeting may only do so if advance notice is given to the company;
|
§
|
provide that directors can be removed from office only by the affirmative vote of the holders of at least 66 2/3 percent of the shares entitled to vote;
|
§
|
provide that a merger or demerger transaction requires the affirmative vote of the holders of at least 66
2/3
percent of the shares represented at the meeting and provide for the possibility of a so
-
called “cashout” or “squeezeout” merger if the acquirer controls 90 percent of the outstanding shares entitled to vote at the meeting;
|
§
|
provide that any action required or permitted to be taken by the holders of shares must be taken at a duly called annual or extraordinary general meeting of shareholders;
|
§
|
limit the ability of our shareholders to amend or repeal some provisions of our articles of association; and
|
§
|
limit transactions between us and an “interested shareholder,” which is generally defined as a shareholder that, together with its affiliates and associates, beneficially, directly or indirectly, owns 15
percent or more of our shares entitled to vote at a general meeting.
|
Item 1B
.
|
Unresolved Staff Comments
|
Item 2
.
|
Properties
|
§
|
principal executive offices in Vernier, Switzerland; and
|
§
|
corporate offices in Zug, Switzerland; Houston, Texas; Cayman Islands; Barbados and Luxembourg.
|
Item 3
.
|
Legal Proceedings
|
Item 4
.
|
Mine Safety Disclosures
|
Age as of
|
||||
Officer
|
Office
|
February 20, 2013
|
||
Steven L. Newman
|
President and Chief Executive Officer
|
48
|
||
Esa Ikäheimonen
|
Executive Vice President, Chief Financial Officer
|
49
|
||
Allen M. Katz
|
Interim Senior Vice President and General Counsel
|
64
|
||
John B. Stobart
|
Executive Vice President, Chief Operating Officer
|
58
|
||
Ihab Toma
|
Executive Vice President, Chief of Staff
|
49
|
||
David Tonnel
|
Senior Vice President, Finance and Controller
|
43
|
Item 5
.
|
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|
NYSE Stock Price
|
SIX Stock Price
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
High
|
Low
|
High
|
Low
|
High
|
Low
|
High
|
Low
|
|||||||||||||||||||||||||
First quarter
|
$
|
59.03
|
$
|
38.80
|
$
|
85.98
|
$
|
68.89
|
CHF
|
54.30
|
CHF
|
36.70
|
CHF
|
79.95
|
CHF
|
64.60
|
||||||||||||||||
Second quarter
|
56.36
|
39.32
|
83.05
|
59.30
|
50.80
|
37.92
|
75.80
|
49.58
|
||||||||||||||||||||||||
Third quarter
|
50.38
|
43.04
|
65.39
|
47.70
|
49.06
|
41.55
|
55.25
|
36.52
|
||||||||||||||||||||||||
Fourth quarter
|
49.50
|
43.65
|
60.09
|
38.21
|
46.62
|
40.18
|
51.70
|
36.02
|
§
|
beneficial ownership,
|
§
|
U.S. residency, and
|
§
|
meeting the U.S.-Swiss tax treaty’s limitation on benefits requirements.
|
Period
|
Total Number
of Shares
Purchased (1
)
|
Average
Price Paid
Per Share
|
Total
Number of Shares
Purchased as Part
of Publicly Announced
Plans or Programs (2)
|
Maximum Number
(or Approximate Dollar Value)
of Shares that May Yet Be Purchased
Under the Plans or Programs (2)
(in millions
)
|
||||||||||
October 2012
|
11,160
|
$
|
47.51
|
—
|
$
|
3,560
|
||||||||
November 2012
|
12,626
|
44.85
|
—
|
3,560
|
||||||||||
December 2012
|
3,403
|
46.26
|
—
|
3,560
|
||||||||||
Total
|
27,189
|
$
|
46.12
|
—
|
$
|
3,560
|
(1)
|
Total number of shares purchased in the fourth quarter of 2012 includes 27,189 shares withheld by us through a broker arrangement and limited to statutory tax in satisfaction of withholding taxes due upon the vesting of restricted shares granted to our employees under our Long-Term Incentive Plan.
|
(2)
|
In May 2009, at the annual general meeting of Transocean Ltd., our shareholders approved and authorized our board of directors, at its discretion, to repurchase an amount of our shares for cancellation with an aggregate purchase price of up to CHF 3.5 billion (which is equivalent to approximately $3.8 billion at an exchange rate as of the close of trading on December 31, 2012 of USD 1.00 to CHF 0.92). On February 12, 2010, our board of directors authorized our management to implement the share repurchase program. We may decide, based upon our ongoing capital requirements, the price of our shares, matters relating to the Macondo well
incident, regulatory and tax considerations, cash flow generation, the relationship between our contract backlog and our debt, general market conditions and other factors, that we should retain cash, reduce debt, make capital investments or otherwise use cash for general corporate purposes, and consequently, repurchase fewer or no shares under this program. Decisions regarding the amount, if any, and timing of any share repurchases would be made from time to time based upon these factors. Through December 31, 2012, we have repurchased a total of 2.9 million of our shares under this share repurchase program at a total cost of $240 million ($83.74 per share). See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Sources and Uses of Liquidity—Overview.”
|
Years ended December 31,
|
||||||||||||||||
2012
|
2011 (a)
|
2010
|
2009
|
2008
|
||||||||||||
(In millions, except per share data)
|
||||||||||||||||
Statement of operations data
|
||||||||||||||||
Operating revenues
|
$
|
9,196
|
$
|
8,027
|
$
|
7,949
|
$
|
8,910
|
$
|
8,917
|
||||||
Operating income (loss)
|
1,581
|
(4,762
|
)
|
2,730
|
3,525
|
3,901
|
||||||||||
Income (loss) from continuing operations
|
816
|
(5,762
|
)
|
1,863
|
2,426
|
2,736
|
||||||||||
Net income (loss)
|
(211
|
)
|
(5,677
|
)
|
969
|
3,170
|
4,029
|
|||||||||
Net income (loss) attributable to controlling interest
|
(219
|
)
|
(5,754
|
)
|
926
|
3,181
|
4,031
|
|||||||||
Per share earnings (loss) from continuing operations
|
||||||||||||||||
Basic
|
$
|
2.27
|
$
|
(18.14
|
)
|
$
|
5.66
|
$
|
7.56
|
$
|
8.58
|
|||||
Diluted
|
$
|
2.27
|
$
|
(18.14
|
)
|
$
|
5.66
|
$
|
7.54
|
$
|
8.52
|
|||||
Balance sheet data (at end of period)
|
||||||||||||||||
Total assets
|
$
|
34,255
|
$
|
35,032
|
$
|
36,814
|
$
|
36,436
|
$
|
35,182
|
||||||
Debt due within one year
|
1,367
|
2,187
|
2,160
|
1,868
|
664
|
|||||||||||
Long
-
term debt
|
11,092
|
11,349
|
9,061
|
9,849
|
12,893
|
|||||||||||
Total equity
|
15,730
|
15,627
|
21,340
|
20,559
|
17,167
|
|||||||||||
Other financial data
|
||||||||||||||||
Cash provided by operating activities
|
$
|
2,708
|
$
|
1,825
|
$
|
3,906
|
$
|
5,598
|
$
|
4,959
|
||||||
Cash used in investing activities
|
(389
|
)
|
(1,896
|
)
|
(721
|
)
|
(2,694
|
)
|
(2,196
|
)
|
||||||
Cash provided by (used in) financing activities
|
(1,202
|
)
|
734
|
(961
|
)
|
(2,737
|
)
|
(3,041
|
)
|
|||||||
Capital expenditures
|
1,303
|
974
|
1,349
|
2,948
|
2,037
|
|||||||||||
Distributions of qualifying additional paid-in capital
|
278
|
763
|
—
|
—
|
—
|
|||||||||||
Per share distributions of qualifying additional paid-in capital
|
$
|
0.79
|
$
|
2.37
|
$
|
—
|
$
|
—
|
$
|
—
|
(a)
|
In October 2011, we completed our acquisition of Aker Drilling ASA (“Aker Drilling”) and applied the acquisition method of accounting for the business combination. The balance sheet data as of December 31, 2011 represents the consolidated statement of financial position of the combined company. The statement of operations and other financial data for the year ended December 31, 2011 include approximately three months of operating results and cash flows for the combined company.
|
2013
|
2014
|
2015
|
2016
|
|||||||||
Uncommitted fleet rate (a)
|
||||||||||||
High-Specification Floaters
|
14
|
%
|
45
|
%
|
67
|
%
|
79
|
%
|
||||
Midwater Floaters
|
44
|
%
|
50
|
%
|
75
|
%
|
98
|
%
|
||||
High-Specification Jackups
|
9
|
%
|
31
|
%
|
49
|
%
|
75
|
%
|
(a)
|
The uncommitted fleet rate is defined as the number of uncommitted days divided by the total number of available rig calendar days in the measurement period, expressed as a percentage. An uncommitted day is defined as a calendar day during which a rig is idle or stacked, is not contracted to a customer and is not committed to a shipyard.
|
February 14,
2013
|
October 17,
2012
|
February 14,
2012
|
||||||||||
Contract backlog
(a)
|
(In millions)
|
|||||||||||
High-Specification Floaters
|
||||||||||||
Ultra-Deepwater Floaters
|
$
|
19,144
|
$
|
20,238
|
$
|
12,232
|
||||||
Deepwater Floaters
|
2,127
|
2,339
|
2,228
|
|||||||||
Harsh Environment Floaters
|
1,942
|
2,189
|
2,188
|
|||||||||
Total High-Specification Floaters
|
23,213
|
24,766
|
16,648
|
|||||||||
Midwater Floaters
|
4,145
|
3,403
|
2,249
|
|||||||||
High-Specification Jackups
|
1,486
|
1,493
|
1,051
|
|||||||||
Total
|
$
|
28,844
|
$
|
29,662
|
$
|
19,948
|
(a)
|
Contract backlog is defined as the maximum contractual operating dayrate multiplied by the number of days remaining in the firm contract period, excluding revenues for mobilization, demobilization and contract preparation or other incentive provisions, which are not expected to be significant to our contract drilling revenues.
|
For the years ending December 31,
|
||||||||||||||||||||||||
Total
|
2013
|
2014
|
2015
|
2016
|
Thereafter
|
|||||||||||||||||||
Contract backlog
(a)
|
(In millions, except average dayrates)
|
|||||||||||||||||||||||
High-Specification Floaters
|
||||||||||||||||||||||||
Ultra-Deepwater Floaters
|
$
|
19,144
|
$
|
4,060
|
$
|
3,182
|
$
|
1,703
|
$
|
1,457
|
$
|
8,742
|
||||||||||||
Deepwater Floaters
|
2,127
|
969
|
640
|
403
|
115
|
—
|
||||||||||||||||||
Harsh Environment Floaters
|
1,942
|
1,035
|
763
|
144
|
—
|
—
|
||||||||||||||||||
Total High-Specification Floaters
|
23,213
|
6,064
|
4,585
|
2,250
|
1,572
|
8,742
|
||||||||||||||||||
Midwater Floaters
|
4,145
|
1,411
|
1,645
|
932
|
157
|
—
|
||||||||||||||||||
High-Specification Jackups
|
1,486
|
440
|
478
|
300
|
119
|
149
|
||||||||||||||||||
Total contract backlog
|
$
|
28,844
|
$
|
7,915
|
$
|
6,708
|
$
|
3,482
|
$
|
1,848
|
$
|
8,891
|
||||||||||||
Average-contractual dayrates
(b)
|
||||||||||||||||||||||||
High-Specification Floaters
|
||||||||||||||||||||||||
Ultra-Deepwater Floaters
|
$
|
527,000
|
$
|
528,000
|
$
|
545,000
|
$
|
532,000
|
$
|
504,000
|
$
|
502,000
|
||||||||||||
Deepwater Floaters
|
$
|
354,000
|
$
|
367,000
|
$
|
337,000
|
$
|
367,000
|
$
|
302,000
|
$
|
—
|
||||||||||||
Harsh Environment Floaters
|
$
|
465,000
|
$
|
457,000
|
$
|
472,000
|
$
|
483,000
|
$
|
—
|
$
|
—
|
||||||||||||
Total High-Specification Floaters
|
$
|
487,000
|
$
|
481,000
|
$
|
492,000
|
$
|
489,000
|
$
|
480,000
|
$
|
502,000
|
||||||||||||
Midwater Floaters
|
$
|
338,000
|
$
|
323,000
|
$
|
352,000
|
$
|
349,000
|
$
|
258,000
|
$
|
—
|
||||||||||||
High-Specification Jackups
|
$
|
150,000
|
$
|
150,000
|
$
|
159,000
|
$
|
146,000
|
$
|
137,000
|
$
|
135,000
|
||||||||||||
Total fleet average
|
$
|
396,000
|
$
|
398,000
|
$
|
396,000
|
$
|
377,000
|
$
|
400,000
|
$
|
421,000
|
(a)
|
Contract backlog is defined as the maximum contractual operating dayrate multiplied by the number of days remaining in the firm contract period, excluding revenues for mobilization, demobilization and contract preparation or other incentive provisions, which are not expected to be significant to our contract drilling revenues.
|
(b)
|
Average contractual dayrate relative to our contract backlog is defined as the maximum contractual operating dayrate to be earned per operating day in the measurement period. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after commencement of operations.
|
Three months ended
|
||||||||||||
December 31,
2012
|
September 30,
2012
|
December 31,
2011
|
||||||||||
Average daily revenue
(a)
|
||||||||||||
High
-
Specification Floaters
|
||||||||||||
Ultra
-
Deepwater Floaters
|
$
|
514,300
|
$
|
515,000
|
$
|
490,200
|
||||||
Deepwater Floaters
|
$
|
337,100
|
$
|
356,300
|
$
|
315,200
|
||||||
Harsh Environment Floaters
|
$
|
476,400
|
$
|
421,000
|
$
|
463,000
|
||||||
Total High
-
Specification Floaters
|
$
|
469,300
|
$
|
464,600
|
$
|
446,100
|
||||||
Midwater Floaters
|
$
|
280,300
|
$
|
264,500
|
$
|
264,800
|
||||||
High
-
Specification Jackups
|
$
|
162,400
|
$
|
154,600
|
$
|
107,300
|
||||||
Total fleet average daily revenue
|
$
|
382,000
|
$
|
376,200
|
$
|
369,900
|
(a)
|
Average daily revenue is defined as contract drilling revenues earned per operating day. An operating day is defined as a calendar day during which a rig is contracted to earn a dayrate during the firm contract period after commencement of operations.
|
Three months ended
|
||||||||||||
December 31,
2012
|
September 30,
2012
|
December 31,
2011
|
||||||||||
Revenue efficiency
(a)
|
||||||||||||
High
-
Specification Floaters
|
||||||||||||
Ultra
-
Deepwater Floaters
|
96
|
%
|
96
|
%
|
90
|
%
|
||||||
Deepwater Floaters
|
91
|
%
|
96
|
%
|
90
|
%
|
||||||
Harsh Environment Floaters
|
97
|
%
|
95
|
%
|
98
|
%
|
||||||
Total High
-
Specification Floaters
|
95
|
%
|
96
|
%
|
91
|
%
|
||||||
Midwater Floaters
|
94
|
%
|
90
|
%
|
95
|
%
|
||||||
High
-
Specification Jackups
|
95
|
%
|
97
|
%
|
93
|
%
|
||||||
Total fleet average revenue efficiency
|
95
|
%
|
95
|
%
|
92
|
%
|
(a)
|
Revenue efficiency is defined as actual contract drilling revenues for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions.
|
Three months ended
|
||||||||||||
December 31,
2012
|
September 30,
2012
|
December 31,
2011
|
||||||||||
Rig utilization
(a)
|
||||||||||||
High
-
Specification Floaters
|
||||||||||||
Ultra
-
Deepwater Floaters
|
94
|
%
|
95
|
%
|
88
|
%
|
||||||
Deepwater Floaters
|
64
|
%
|
63
|
%
|
55
|
%
|
||||||
Harsh Environment Floaters
|
72
|
%
|
91
|
%
|
96
|
%
|
||||||
Total High
-
Specification Floaters
|
82
|
%
|
85
|
%
|
78
|
%
|
||||||
Midwater Floaters
|
72
|
%
|
70
|
%
|
57
|
%
|
||||||
High
-
Specification Jackups
|
81
|
%
|
86
|
%
|
74
|
%
|
||||||
Total fleet average utilization
|
79
|
%
|
80
|
%
|
72
|
%
|
(a)
|
Rig utilization is defined as the total number of operating days divided by the total number of available rig calendar days in the measurement period, expressed as a percentage.
|
Years ended December 31,
|
|||||||||||||||
2012
|
2011
|
Change
|
% Change
|
||||||||||||
(In millions, except day amounts and percentages)
|
|||||||||||||||
Revenue earning days
|
23,577
|
20,017
|
3,560
|
18
|
%
|
||||||||||
Utilization
|
78
|
%
|
69
|
%
|
|||||||||||
Average daily revenue
|
$
|
370,300
|
$
|
367,600
|
$
|
2,700
|
1
|
%
|
|||||||
Contract drilling revenues
|
$
|
8,773
|
$
|
7,407
|
$
|
1,366
|
18
|
%
|
|||||||
Other revenues
|
423
|
620
|
(197
|
)
|
(32)
|
%
|
|||||||||
9,196
|
8,027
|
1,169
|
15
|
%
|
|||||||||||
Operating and maintenance expense
|
(6,106
|
)
|
(6,179
|
)
|
73
|
(1)
|
%
|
||||||||
Depreciation and amortization
|
(1,123
|
)
|
(1,109
|
)
|
(14
|
)
|
1
|
%
|
|||||||
General and administrative expense
|
(282
|
)
|
(288
|
)
|
6
|
(2)
|
%
|
||||||||
Loss on impairment
|
(140
|
)
|
(5,201
|
)
|
5,061
|
(97)
|
%
|
||||||||
Gain (loss) on disposal of assets, net
|
36
|
(12
|
)
|
48
|
n/m
|
||||||||||
Operating income (loss)
|
1,581
|
(4,762
|
)
|
6,343
|
n/m
|
||||||||||
Other income (expense), net
|
|||||||||||||||
Interest income
|
56
|
44
|
12
|
27
|
%
|
||||||||||
Interest expense, net of amounts capitalized
|
(723
|
)
|
(621
|
)
|
(102
|
)
|
16
|
%
|
|||||||
Gain on retirement of debt
|
2
|
—
|
2
|
n/m
|
|||||||||||
Other, net
|
(50
|
)
|
(99
|
)
|
49
|
(49)
|
%
|
||||||||
Income (loss) from continuing operations before income tax expense
|
866
|
(5,438
|
)
|
6,304
|
n/m
|
||||||||||
Income tax expense
|
(50
|
)
|
(324
|
)
|
274
|
(85)
|
%
|
||||||||
Income (loss) from continuing operations
|
816
|
(5,762
|
)
|
6,578
|
n/m
|
||||||||||
Income (loss) from discontinued operations, net of tax
|
(1,027
|
)
|
85
|
(1,112
|
)
|
n/m
|
|||||||||
Net loss
|
(211
|
)
|
(5,677
|
)
|
5,466
|
(96)
|
%
|
||||||||
Net income attributable to noncontrolling interest
|
8
|
77
|
(69
|
)
|
(90)
|
%
|
|||||||||
Net loss attributable to controlling interest
|
$
|
(219
|
)
|
$
|
(5,754
|
)
|
$
|
5,535
|
(96)
|
%
|
|
“n/a” means not applicable.
|
|
“n/m” means not meaningful.
|
Years ended December 31,
|
|||||||||||||||
2011
|
2010
|
Change
|
% Change
|
||||||||||||
(In millions, except day amounts and percentages)
|
|||||||||||||||
Revenue earning days
|
20,017
|
21,796
|
(1,779
|
)
|
(8)
|
%
|
|||||||||
Utilization
|
69
|
%
|
76
|
%
|
|||||||||||
Average daily revenue
|
$
|
367,600
|
$
|
348,100
|
$
|
19,500
|
6
|
%
|
|||||||
Contract drilling revenues
|
$
|
7,407
|
$
|
7,698
|
$
|
(291
|
)
|
(4)
|
%
|
||||||
Other revenues
|
620
|
251
|
369
|
n/m
|
|||||||||||
8,027
|
7,949
|
78
|
1
|
%
|
|||||||||||
Operating and maintenance expense
|
(6,179
|
)
|
(4,219
|
)
|
(1,960
|
)
|
46
|
%
|
|||||||
Depreciation and amortization
|
(1,109
|
)
|
(1,009
|
)
|
(100
|
)
|
10
|
%
|
|||||||
General and administrative expense
|
(288
|
)
|
(246
|
)
|
(42
|
)
|
17
|
%
|
|||||||
Loss on impairment
|
(5,201
|
)
|
—
|
(5,201
|
)
|
n/m
|
|||||||||
Gain (loss) on disposal of assets, net
|
(12
|
)
|
255
|
(267
|
)
|
n/m
|
|||||||||
Operating income (loss)
|
(4,762
|
)
|
2,730
|
(7,492
|
)
|
n/m
|
|||||||||
Other income (expense), net
|
|||||||||||||||
Interest income
|
44
|
23
|
21
|
91
|
%
|
||||||||||
Interest expense, net of amounts capitalized
|
(621
|
)
|
(567
|
)
|
(54
|
)
|
10
|
%
|
|||||||
Loss on retirement of debt
|
—
|
(33
|
)
|
33
|
n/m
|
||||||||||
Other, net
|
(99
|
)
|
2
|
(101
|
)
|
n/m
|
|||||||||
Income (loss) from continuing operations before income tax expense
|
(5,438
|
)
|
2,155
|
(7,593
|
)
|
n/m
|
|||||||||
Income tax expense
|
(324
|
)
|
(292
|
)
|
(32
|
)
|
11
|
%
|
|||||||
Income (loss) from continuing operations
|
(5,762
|
)
|
1,863
|
(7,625
|
)
|
n/m
|
|||||||||
Income (loss) from discontinued operations, net of tax
|
85
|
(894)
|
979
|
n/m
|
|||||||||||
Net income (loss)
|
(5,677
|
)
|
969
|
(6,646
|
)
|
n/m
|
|||||||||
Net income attributable to noncontrolling interest
|
77
|
43
|
34
|
79
|
%
|
||||||||||
Net income (loss) attributable to controlling interest
|
$
|
(5,754
|
)
|
$
|
926
|
$
|
(6,680
|
)
|
n/m
|
|
“n/a” means not applicable.
|
|
“n/m” means not meaningful.
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
Change
|
||||||||||
(In millions)
|
||||||||||||
Cash flows from operating activities
|
||||||||||||
Net loss
|
$
|
(211
|
)
|
$
|
(5,677
|
)
|
$
|
5,466
|
||||
Amortization of drilling contract intangibles
|
(42
|
)
|
(45
|
)
|
3
|
|||||||
Depreciation and amortization
|
1,306
|
1,451
|
(145
|
)
|
||||||||
Loss on impairment of assets
|
1,126
|
5,239
|
(4,113
|
)
|
||||||||
Gain on disposal of assets, net
|
(118
|
)
|
(171
|
)
|
53
|
|||||||
Other non
-
cash items
|
135
|
225
|
(90
|
)
|
||||||||
Changes in operating assets and liabilities, net
|
512
|
803
|
(291
|
)
|
||||||||
$
|
2,708
|
$
|
1,825
|
$
|
883
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
Change
|
||||||||||
(In millions)
|
||||||||||||
Cash flows from investing activities
|
||||||||||||
Capital expenditures
|
$
|
(1,303
|
)
|
$
|
(974
|
)
|
$
|
(329
|
)
|
|||
Capital expenditures for discontinued operations
|
(106
|
)
|
(46
|
)
|
(60
|
)
|
||||||
Investment in business combination, net of cash acquired
|
—
|
(1,246
|
)
|
1,246
|
||||||||
Payment for settlement of forward exchange contract, net
|
—
|
(78
|
)
|
78
|
||||||||
Proceeds from disposal of assets, net
|
191
|
14
|
177
|
|||||||||
Proceeds from disposal of assets in discontinued operations, net
|
789
|
447
|
342
|
|||||||||
Other, net
|
40
|
(13
|
)
|
53
|
||||||||
$
|
(389
|
)
|
$
|
(1,896
|
)
|
$
|
1,507
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
Change
|
||||||||||
(In millions)
|
||||||||||||
Cash flows from financing activities
|
||||||||||||
Change in short
-
term borrowings, net
|
$
|
(260
|
)
|
$
|
(88
|
)
|
$
|
(172)
|
||||
Proceeds from debt
|
1,493
|
2,939
|
(1,446)
|
|||||||||
Repayments of debt
|
(2,282
|
)
|
(2,409
|
)
|
127
|
|||||||
Proceeds from restricted cash investments
|
311
|
479
|
(168
|
)
|
||||||||
Deposits to restricted cash investments
|
(167
|
)
|
(523
|
)
|
356
|
|||||||
Proceeds from share issuance, net
|
—
|
1,211
|
(1,211
|
)
|
||||||||
Distribution of qualifying additional paid-in capital
|
(278
|
)
|
(763
|
)
|
485
|
|||||||
Financing costs
|
(24
|
)
|
(83
|
)
|
59
|
|||||||
Other, net
|
5
|
(29
|
)
|
34
|
||||||||
$
|
(1,202
|
)
|
$
|
734
|
$
|
(1,936
|
)
|
Total costs
through
December 31,
2012
|
Expected costs
for the year ending
December 31,
2013
|
Estimated
costs
thereafter
|
Total estimated
costs
at completion
|
|||||||||||||
(In millions)
|
||||||||||||||||
Transocean Honor (a)
|
$
|
262
|
$
|
—
|
$
|
—
|
$
|
262
|
||||||||
Deepwater Asgard (b)
|
186
|
525
|
39
|
750
|
||||||||||||
Deepwater Invictus (b)
|
179
|
512
|
54
|
745
|
||||||||||||
Transocean Siam Driller (c)
|
162
|
78
|
—
|
240
|
||||||||||||
Transocean Andaman (c)
|
160
|
85
|
—
|
245
|
||||||||||||
Transocean Ao Thai (c)
|
152
|
93
|
—
|
245
|
||||||||||||
Ultra-Deepwater Floater TBN1 (d)
|
139
|
171
|
520
|
830
|
||||||||||||
Ultra-Deepwater Floater TBN2 (d)
|
128
|
158
|
499
|
785
|
||||||||||||
Ultra-Deepwater Floater TBN3 (d)
|
76
|
58
|
651
|
785
|
||||||||||||
Ultra-Deepwater Floater TBN4 (d)
|
76
|
57
|
652
|
785
|
||||||||||||
Total
|
$
|
1,520
|
$
|
1,737
|
$
|
2,415
|
$
|
5,672
|
(a)
|
Transocean Honor
, a PPL Pacific Class 400 design High-Specification Jackup, owned through our 70 percent interest in Transocean Drilling Services Offshore Inc. (“TDSOI”), commenced operations in May 2012. The costs presented above represent 100 percent of TDSOI’s expenditures in the construction of
Transocean Honor
. The accumulated construction costs of this rig are no longer included in construction work in progress, as the construction project had been completed as of December 31, 2012.
|
(b)
|
Deepwater Asgard
and
Deepwater Invictus
, two Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to be ready to commence operations in the second quarter of 2014. Total costs through December 31, 2012 include construction work in progress acquired in connection with our acquisition of Aker Drilling with an aggregate estimated fair value of $272 million.
|
(c)
|
Transocean Siam Driller, Transocean Andaman and Transocean Ao Thai,
three Keppel FELS Super B class design High-Specification Jackups under construction at Keppel FELS’ yard in Singapore, are expected to commence operations in the first quarter of 2013, the second quarter of 2013 and the fourth quarter of 2013, respectively.
|
(d)
|
Our four newbuild Ultra-Deepwater drillships, under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the fourth quarter of 2015, the second quarter of 2016, the fourth quarter of 2016, and the first quarter of 2017, respectively.
|
For the years ending December 31,
|
||||||||||||||||||||
Total
|
2013
|
2014 - 2015
|
2016 - 2017
|
Thereafter
|
||||||||||||||||
(in millions)
|
||||||||||||||||||||
Contractual obligations
|
||||||||||||||||||||
Debt
|
$
|
11,589
|
$
|
1,034
|
$
|
1,738
|
$
|
2,325
|
$
|
6,492
|
||||||||||
Debt of consolidated variable interest entities
|
191
|
28
|
91
|
72
|
—
|
|||||||||||||||
Interest on debt (a)
|
6,265
|
637
|
1,202
|
969
|
3,457
|
|||||||||||||||
Capital lease
|
1,201
|
66
|
144
|
145
|
846
|
|||||||||||||||
Operating leases
|
231
|
42
|
62
|
32
|
95
|
|||||||||||||||
Purchase obligations
|
3,766
|
1,896
|
1,196
|
674
|
—
|
|||||||||||||||
Total (b)
|
$
|
23,243
|
$
|
3,703
|
$
|
4,433
|
$
|
4,217
|
$
|
10,890
|
(a)
|
Includes interest on consolidated debt.
|
(b)
|
As of December 31, 2012, our defined benefit pension and other postretirement plans represented an aggregate liability of $642 million, representing the aggregate projected benefit obligation, net of the aggregate fair value of plan assets. The carrying amount of this liability is affected by net periodic benefit costs, funding contributions, participant demographics, plan amendments, significant current and future assumptions, and returns on plan assets. Due to the uncertainties resulting from these factors and since the carrying amount is not representative of future liquidity requirements, we have excluded this amount from the contractual obligations presented in the table above. See “—Retirement Pension Plans and Other Postretirement Benefit Plans” and Notes to Consolidated Financial Statements—Note 16—Postemployment Benefit Plans.
|
|
As of December 31, 2012, our unrecognized tax benefits related to uncertain tax positions, net of prepayments, represented a liability of $581 million. Due to the high degree of uncertainty regarding the timing of future cash outflows associated with the liabilities recognized in this balance, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities, and we have excluded this amount from the contractual obligations presented in the table above. See Notes to Consolidated Financial Statements—Note 8—Income Taxes.
|
|
Subsequent to December 31, 2012, we reached an agreement with the DOJ to resolve certain outstanding civil and potential criminal charges against us arising from the Macondo well incident. As part of this resolution, we agreed to pay $1.4 billion in fines, recoveries and penalties, excluding interest, in scheduled payments over a five-year period through 2017. The Consent Decree and Plea Agreement, pursuant to which our obligations are defined, received court approval in February 2013 and, at the time of such approval, were reclassified from other current liabilities to debt or debt due within one year. See “—Contingencies—Macondo well incident.”
|
For the years ending December 31,
|
||||||||||||||||||||
Total
|
2013
|
2014 - 2015
|
2016 - 2017
|
Thereafter
|
||||||||||||||||
(in millions)
|
||||||||||||||||||||
Other commercial commitments
|
||||||||||||||||||||
Standby letters of credit (a)
|
$
|
522
|
$
|
463
|
$
|
59
|
$
|
—
|
$
|
—
|
||||||||||
Surety bonds
|
11
|
11
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
533
|
$
|
474
|
$
|
59
|
$
|
—
|
$
|
—
|
(a)
|
Included in the $522 million outstanding letters of credit at December 31, 2012 were $113 million of letters of credit that we have agreed to retain in support of the operations for Shelf Drilling for up to three years following the closing of the sale transactions (See Notes to Consolidated Financial Statements—Note 9—Discontinued Operations). Shelf Drilling is required to reimburse us in the event that surety bonds relating to this performance are called.
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||||||||||||||
Net periodic benefit costs (a)
|
$
|
89
|
$
|
57
|
$
|
3
|
$
|
149
|
$
|
62
|
$
|
25
|
$
|
1
|
$
|
88
|
||||||||||||||||
Other comprehensive income (loss)
|
(32
|
)
|
31
|
(4
|
)
|
(5
|
)
|
(129
|
)
|
(51
|
)
|
1
|
(179
|
)
|
||||||||||||||||||
Employer contributions
|
108
|
49
|
2
|
159
|
70
|
29
|
4
|
103
|
||||||||||||||||||||||||
At end of period:
|
||||||||||||||||||||||||||||||||
Accumulated benefit obligation
|
$
|
1,255
|
$
|
434
|
$
|
58
|
$
|
1,747
|
$
|
1,083
|
$
|
375
|
$
|
53
|
$
|
1,511
|
||||||||||||||||
Projected benefit obligation
|
1,452
|
499
|
58
|
2,009
|
1,260
|
447
|
53
|
1,760
|
||||||||||||||||||||||||
Fair value of plan assets
|
948
|
422
|
—
|
1,370
|
769
|
351
|
—
|
1,120
|
||||||||||||||||||||||||
Funded status
|
(504
|
)
|
(77
|
)
|
(58
|
)
|
(639
|
)
|
(491
|
)
|
(96
|
)
|
(53
|
)
|
(640
|
)
|
||||||||||||||||
Weighted
-
Average Assumptions
|
||||||||||||||||||||||||||||||||
-Net periodic benefit costs
|
||||||||||||||||||||||||||||||||
Discount rate (b)
|
4.67
|
%
|
5.43
|
%
|
4.27
|
%
|
4.85
|
%
|
5.49
|
%
|
5.73
|
%
|
4.94
|
%
|
5.53
|
%
|
||||||||||||||||
Long
-
term rate of return (c)
|
7.47
|
%
|
6.07
|
%
|
n/a
|
7.02
|
%
|
8.49
|
%
|
6.42
|
%
|
n/a
|
7.83
|
%
|
||||||||||||||||||
Compensation trend rate (b)
|
4.22
|
%
|
4.61
|
%
|
n/a
|
4.32
|
%
|
4.24
|
%
|
4.62
|
%
|
n/a
|
4.36
|
%
|
||||||||||||||||||
Health care cost trend rate-initial
|
n/a
|
n/a
|
8.08
|
%
|
8.08
|
%
|
n/a
|
n/a
|
8.08
|
%
|
8.08
|
%
|
||||||||||||||||||||
Health care cost trend rate-ultimate (d)
|
n/a
|
n/a
|
5.00
|
%
|
5.00
|
%
|
n/a
|
n/a
|
5.00
|
%
|
5.00
|
%
|
||||||||||||||||||||
-Benefit obligations
|
||||||||||||||||||||||||||||||||
Discount rate (b)
|
4.19
|
%
|
5.37
|
%
|
3.63
|
%
|
4.48
|
%
|
4.66
|
%
|
4.90
|
%
|
4.28
|
%
|
4.71
|
%
|
||||||||||||||||
Compensation trend rate (b)
|
4.21
|
%
|
4.38
|
%
|
n/a
|
4.25
|
%
|
4.22
|
%
|
4.30
|
%
|
n/a
|
4.26
|
%
|
|
“n/a” means not applicable.
|
(a)
|
Net periodic benefit costs were reduced by expected returns on plan assets of $84 million and $86 million in the years ended December 31, 2012 and 2011, respectively.
|
(b)
|
Weighted-average based on relative average projected benefit obligation for the year.
|
(c)
|
Weighted-average based on relative average fair value of plan assets for the year.
|
(d)
|
Ultimate health care trend rate is expected to be reached in 2019.
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||
Years ending December 31,
|
||||||||||||||||
2013
|
$
|
43
|
$
|
28
|
$
|
4
|
$
|
75
|
||||||||
2014
|
47
|
11
|
4
|
62
|
||||||||||||
2015
|
51
|
10
|
4
|
65
|
||||||||||||
2016
|
55
|
11
|
4
|
70
|
||||||||||||
2017
|
59
|
11
|
4
|
74
|
||||||||||||
2018-2022
|
349
|
82
|
22
|
453
|
Scheduled Maturity Date (a)
|
Fair Value
|
|||||||||||||||||||||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
Thereafter
|
Total
|
(b)
|
|||||||||||||||||||||||||
Restricted cash investments
|
||||||||||||||||||||||||||||||||
Fixed rate (NOK)
|
$
|
152
|
$
|
152
|
$
|
153
|
$
|
153
|
$
|
153
|
$
|
38
|
$
|
801
|
$
|
843
|
||||||||||||||||
Average interest rate
|
4.15
|
%
|
4.15
|
%
|
4.15
|
%
|
4.15
|
%
|
4.15
|
%
|
4.15
|
%
|
||||||||||||||||||||
Debt
|
||||||||||||||||||||||||||||||||
Fixed rate (USD)
|
$
|
831
|
$
|
22
|
$
|
1,123
|
$
|
1,026
|
$
|
777
|
$
|
6,994
|
$
|
10,773
|
$
|
(12,371
|
)
|
|||||||||||||||
Average interest rate
|
4.95
|
%
|
7.76
|
%
|
5.01
|
%
|
5.12
|
%
|
2.69
|
%
|
6.46
|
%
|
||||||||||||||||||||
Fixed rate (NOK)
|
$
|
152
|
$
|
152
|
$
|
153
|
$
|
253
|
$
|
153
|
$
|
38
|
$
|
901
|
$
|
(948
|
)
|
|||||||||||||||
Average interest rate
|
4.15
|
%
|
4.15
|
%
|
4.15
|
%
|
6.87
|
%
|
4.15
|
%
|
4.15
|
%
|
||||||||||||||||||||
Variable rate (USD)
|
$
|
70
|
$
|
70
|
$
|
263
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
403
|
$
|
(403
|
)
|
|||||||||||||||
Average interest rate
|
1.76
|
%
|
1.76
|
%
|
2.01
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Variable rate (NOK)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
169
|
$
|
—
|
$
|
—
|
$
|
169
|
$
|
(177
|
)
|
|||||||||||||||
Average interest rate
|
—
|
%
|
—
|
%
|
—
|
%
|
8.96
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Debt of consolidated variable interest entities
|
||||||||||||||||||||||||||||||||
Variable rate (USD)
|
$
|
28
|
$
|
30
|
$
|
61
|
$
|
35
|
$
|
37
|
$
|
—
|
$
|
191
|
$
|
(191
|
)
|
|||||||||||||||
Average interest rate
|
1.25
|
%
|
1.25
|
%
|
2.27
|
%
|
1.25
|
%
|
1.25
|
%
|
—
|
%
|
||||||||||||||||||||
Interest rate swaps
|
||||||||||||||||||||||||||||||||
Fixed to variable (USD)
|
$
|
750
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
750
|
$
|
2
|
||||||||||||||||
Average pay rate
|
3.48
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Average receive rate
|
5.17
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Variable to fixed (USD)
|
$
|
70
|
$
|
70
|
$
|
263
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
403
|
$
|
(13
|
)
|
|||||||||||||||
Average pay rate
|
2.34
|
%
|
2.34
|
%
|
2.34
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Average receive rate
|
0.31
|
%
|
0.31
|
%
|
0.31
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Cross-currency swaps
|
||||||||||||||||||||||||||||||||
Receive NOK / pay USD
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
102
|
$
|
—
|
$
|
—
|
$
|
102
|
$
|
1
|
||||||||||||||||
Average pay rate
|
—
|
%
|
—
|
%
|
—
|
%
|
8.93
|
%
|
—
|
%
|
—
|
%
|
||||||||||||||||||||
Average receive rate
|
—
|
%
|
—
|
%
|
—
|
%
|
11.00
|
%
|
—
|
%
|
—
|
%
|
______________________________
|
(a)
|
Expected maturity amounts are based on the face value of debt.
|
We have engaged in certain hedging activities designed to reduce our exposure to interest rate risk and currency exchange rate risk. We also hold certain derivative instruments that are not designated as hedges. See Notes to Consolidated Financial Statements—Note 15—Derivatives and Hedging.
|
(b)
|
Stated amounts represent the fair value of the asset (liability) as of December 31, 2012.
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating revenues
|
||||||||||||
Contract drilling revenues
|
$
|
8,773
|
$
|
7,407
|
$
|
7,698
|
||||||
Other revenues
|
423
|
620
|
251
|
|||||||||
9,196
|
8,027
|
7,949
|
||||||||||
Costs and expenses
|
||||||||||||
Operating and maintenance
|
6,106
|
6,179
|
4,219
|
|||||||||
Depreciation and amortization
|
1,123
|
1,109
|
1,009
|
|||||||||
General and administrative
|
282
|
288
|
246
|
|||||||||
7,511
|
7,576
|
5,474
|
||||||||||
Loss on impairment
|
(140
|
)
|
(5,201
|
)
|
—
|
|||||||
Gain (loss) on disposal of assets, net
|
36
|
(12
|
)
|
255
|
||||||||
Operating income (loss)
|
1,581
|
(4,762
|
)
|
2,730
|
||||||||
Other income (expense), net
|
||||||||||||
Interest income
|
56
|
44
|
23
|
|||||||||
Interest expense, net of amounts capitalized
|
(723
|
)
|
(621
|
)
|
(567
|
)
|
||||||
Gain (loss) on retirement of debt
|
2
|
—
|
(33
|
)
|
||||||||
Other, net
|
(50
|
)
|
(99
|
)
|
2
|
|||||||
(715
|
)
|
(676
|
)
|
(575
|
)
|
|||||||
Income (loss) from continuing operations before income tax expense
|
866
|
(5,438
|
)
|
2,155
|
||||||||
Income tax expense
|
50
|
324
|
292
|
|||||||||
Income (loss) from continuing operations
|
816
|
(5,762
|
)
|
1,863
|
||||||||
Income (loss) from discontinued operations, net of tax
|
(1,027
|
)
|
85
|
(894
|
)
|
|||||||
Net income (loss)
|
(211
|
)
|
(5,677
|
)
|
969
|
|||||||
Net income attributable to noncontrolling interest
|
8
|
77
|
43
|
|||||||||
Net income (loss) attributable to controlling interest
|
$
|
(219
|
)
|
$
|
(5,754
|
)
|
$
|
926
|
||||
Earnings (loss) per share-basic
|
||||||||||||
Earnings (loss) from continuing operations
|
$
|
2.27
|
$
|
(18.14
|
)
|
$
|
5.66
|
|||||
Earnings (loss) from discontinued operations
|
(2.89
|
)
|
0.26
|
(2.78
|
)
|
|||||||
Earnings (loss) per share
|
$
|
(0.62
|
)
|
$
|
(17.88
|
)
|
$
|
2.88
|
||||
Earnings (loss) per share-diluted
|
||||||||||||
Earnings (loss) from continuing operations
|
$
|
2.27
|
$
|
(18.14
|
)
|
$
|
5.66
|
|||||
Earnings (loss) from discontinued operations
|
(2.89
|
)
|
0.26
|
(2.78
|
)
|
|||||||
Earnings (loss) per share
|
$
|
(0.62
|
)
|
$
|
(17.88
|
)
|
$
|
2.88
|
||||
Weighted
-
average shares outstanding
|
||||||||||||
Basic
|
356
|
322
|
320
|
|||||||||
Diluted
|
356
|
322
|
320
|
|||||||||
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net income (loss)
|
$
|
(211
|
)
|
$
|
(5,677
|
)
|
$
|
969
|
||||
Other comprehensive income (loss) before income taxes
|
||||||||||||
Unrecognized components of net periodic benefit costs
|
(52
|
)
|
(204
|
)
|
(8
|
)
|
||||||
Unrecognized gain (loss) on derivative instruments
|
3
|
(13
|
)
|
(29
|
)
|
|||||||
Unrecognized loss on marketable securities
|
—
|
(13
|
)
|
—
|
||||||||
Recognized components of net periodic benefit costs
|
47
|
25
|
16
|
|||||||||
Recognized (gain) loss on derivative instruments
|
(1
|
)
|
11
|
12
|
||||||||
Recognized loss on marketable securities
|
2
|
13
|
—
|
|||||||||
Other comprehensive income (loss) before income taxes
|
(1
|
)
|
(181
|
)
|
(9
|
)
|
||||||
Income taxes related to other comprehensive income (loss)
|
(7
|
)
|
13
|
(9
|
)
|
|||||||
Other comprehensive income (loss), net of income taxes
|
(8
|
)
|
(168
|
)
|
(18
|
)
|
||||||
Total comprehensive income (loss)
|
(219
|
)
|
(5,845
|
)
|
951
|
|||||||
Total comprehensive income attributable to noncontrolling interest
|
8
|
73
|
22
|
|||||||||
Total comprehensive income (loss) attributable to controlling interest
|
$
|
(227
|
)
|
$
|
(5,918
|
)
|
$
|
929
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
5,134
|
$
|
4,017
|
||||
Accounts receivable, net
|
||||||||
Trade
|
1,940
|
2,049
|
||||||
Other
|
260
|
127
|
||||||
Materials and supplies, net
|
610
|
529
|
||||||
Assets held for sale
|
179
|
26
|
||||||
Deferred income taxes, net
|
142
|
142
|
||||||
Other current assets
|
382
|
646
|
||||||
Total current assets
|
8,647
|
7,536
|
||||||
Property and equipment
|
26,967
|
24,833
|
||||||
Property and equipment of consolidated variable interest entities
|
1,092
|
2,252
|
||||||
Less accumulated depreciation
|
7,179
|
6,297
|
||||||
Property and equipment, net
|
20,880
|
20,788
|
||||||
Goodwill
|
2,987
|
3,217
|
||||||
Other assets
|
1,741
|
3,491
|
||||||
Total assets
|
$
|
34,255
|
$
|
35,032
|
||||
Liabilities and equity
|
||||||||
Accounts payable
|
$
|
1,047
|
$
|
880
|
||||
Accrued income taxes
|
116
|
86
|
||||||
Debt due within one year
|
1,339
|
1,942
|
||||||
Debt of consolidated variable interest entities due within one year
|
28
|
245
|
||||||
Other current liabilities
|
2,933
|
2,375
|
||||||
Total current liabilities
|
5,463
|
5,528
|
||||||
Long
-
term debt
|
10,929
|
10,756
|
||||||
Long
-
term debt of consolidated variable interest entities
|
163
|
593
|
||||||
Deferred income taxes, net
|
366
|
487
|
||||||
Other long
-
term liabilities
|
1,604
|
1,925
|
||||||
Total long
-
term liabilities
|
13,062
|
13,761
|
||||||
Commitments and contingencies
|
||||||||
Redeemable noncontrolling interest
|
—
|
116
|
||||||
Shares, CHF 15.00 par value, 402,282,355 authorized, 167,617,649 conditionally authorized at December 31, 2012 and 2011; 373,830,649 and 365,135,298 issued at December 31, 2012 and 2011, respectively;
and 359,505,251 and 349,805,793 outstanding at December 31, 2012 and 2011, respectively
|
5,130
|
4,982
|
||||||
Additional paid
-
in capital
|
7,521
|
7,211
|
||||||
Treasury shares, at cost, 2,863,267 held at December 31, 2012 and 2011
|
(240
|
)
|
(240
|
)
|
||||
Retained earnings
|
3,855
|
4,180
|
||||||
Accumulated other comprehensive loss
|
(521
|
)
|
(496
|
)
|
||||
Total controlling interest shareholders’ equity
|
15,745
|
15,637
|
||||||
Noncontrolling interest
|
(15
|
)
|
(10
|
)
|
||||
Total equity
|
15,730
|
15,627
|
||||||
Total liabilities and equity
|
$
|
34,255
|
$
|
35,032
|
Years ended December 31,
|
Years ended December 31,
|
||||||||||||||||||||
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
||||||||||||||||
Shares
|
Shares
|
Amount
|
|||||||||||||||||||
Balance, beginning of period
|
350
|
319
|
321
|
$
|
4,982
|
$
|
4,482
|
$
|
4,472
|
||||||||||||
Issuance of shares under share-based compensation plans
|
1
|
1
|
1
|
14
|
12
|
10
|
|||||||||||||||
Issuance of shares in exchange for redeemable noncontrolling interest
|
9
|
—
|
—
|
134
|
—
|
—
|
|||||||||||||||
Issuance of shares in public offering
|
—
|
30
|
—
|
—
|
488
|
—
|
|||||||||||||||
Purchases of shares held in treasury
|
—
|
—
|
(3
|
)
|
—
|
—
|
—
|
||||||||||||||
Balance, end of period
|
360
|
350
|
319
|
$
|
5,130
|
$
|
4,982
|
$
|
4,482
|
||||||||||||
Additional paid
-
in capital
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
7,211
|
$
|
7,504
|
$
|
7,407
|
|||||||||||||||
Share-based compensation
|
97
|
95
|
102
|
||||||||||||||||||
Issuance of shares under share-based compensation plans
|
(17
|
)
|
(18
|
)
|
(11
|
)
|
|||||||||||||||
Issuance of shares in exchange for redeemable noncontrolling interest
|
233
|
—
|
—
|
||||||||||||||||||
Issuance of shares in public offering, net of issue costs
|
—
|
671
|
—
|
||||||||||||||||||
Obligation for distribution of qualifying additional paid-in capital
|
—
|
(1,041
|
)
|
—
|
|||||||||||||||||
Other, net
|
(3
|
)
|
—
|
6
|
|||||||||||||||||
Balance, end of period
|
$
|
7,521
|
$
|
7,211
|
$
|
7,504
|
|||||||||||||||
Treasury shares, at cost
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
(240
|
)
|
$
|
(240
|
)
|
$
|
—
|
|||||||||||||
Purchases of shares held in treasury
|
—
|
—
|
(240
|
)
|
|||||||||||||||||
Balance, end of period
|
$
|
(240
|
)
|
$
|
(240
|
)
|
$
|
(240
|
)
|
||||||||||||
Retained earnings
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
4,180
|
$
|
9,934
|
$
|
9,008
|
|||||||||||||||
Net income (loss) attributable to controlling interest
|
(219
|
)
|
(5,754
|
)
|
926
|
||||||||||||||||
Fair value adjustment of redeemable noncontrolling interest
|
(106
|
)
|
—
|
—
|
|||||||||||||||||
Balance, end of period
|
$
|
3,855
|
$
|
4,180
|
$
|
9,934
|
|||||||||||||||
Accumulated other comprehensive loss
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
(496
|
)
|
$
|
(332
|
)
|
$
|
(335
|
)
|
||||||||||||
Other comprehensive income (loss) attributable to controlling interest
|
(8
|
)
|
(164
|
)
|
3
|
||||||||||||||||
Reclassification from redeemable noncontrolling interest
|
(17
|
)
|
—
|
—
|
|||||||||||||||||
Balance, end of period
|
$
|
(521
|
)
|
$
|
(496
|
)
|
$
|
(332
|
)
|
||||||||||||
Total controlling interest shareholders’ equity
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
15,637
|
$
|
21,348
|
$
|
20,552
|
|||||||||||||||
Total comprehensive income (loss) attributable to controlling interest
|
(227
|
)
|
(5,918
|
)
|
929
|
||||||||||||||||
Share-based compensation
|
97
|
95
|
102
|
||||||||||||||||||
Issuance of shares under share-based compensation plans
|
(3
|
)
|
(6
|
)
|
(1
|
)
|
|||||||||||||||
Issuance of shares in exchange for redeemable noncontrolling interest
|
367
|
—
|
—
|
||||||||||||||||||
Fair value adjustment of redeemable noncontrolling interest
|
(106
|
)
|
—
|
—
|
|||||||||||||||||
Reclassification from redeemable noncontrolling interest
|
(17
|
)
|
—
|
—
|
|||||||||||||||||
Issuance of shares in public offering, net of issue costs
|
—
|
1,159
|
—
|
||||||||||||||||||
Obligation for distribution of qualifying additional paid-in capital
|
—
|
(1,041
|
)
|
—
|
|||||||||||||||||
Purchases of shares held in treasury
|
—
|
—
|
(240
|
)
|
|||||||||||||||||
Other, net
|
(3
|
)
|
—
|
6
|
|||||||||||||||||
Balance, end of period
|
$
|
15,745
|
$
|
15,637
|
$
|
21,348
|
|||||||||||||||
Noncontrolling interest
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
(10
|
)
|
$
|
(8
|
)
|
$
|
7
|
|||||||||||||
Total comprehensive income (loss) attributable to noncontrolling interest
|
(5
|
)
|
(2
|
)
|
7
|
||||||||||||||||
Reclassification of redeemable noncontrolling interest
|
—
|
—
|
(26
|
)
|
|||||||||||||||||
Other, net
|
—
|
—
|
4
|
||||||||||||||||||
Balance, end of period
|
$
|
(15
|
)
|
$
|
(10
|
)
|
$
|
(8
|
)
|
||||||||||||
Total equity
|
|||||||||||||||||||||
Balance, beginning of period
|
$
|
15,627
|
$
|
21,340
|
$
|
20,559
|
|||||||||||||||
Total comprehensive income (loss)
|
(232
|
)
|
(5,920
|
)
|
936
|
||||||||||||||||
Share-based compensation
|
97
|
95
|
102
|
||||||||||||||||||
Issuance of shares under share-based compensation plans
|
(3
|
)
|
(6
|
)
|
(1
|
)
|
|||||||||||||||
Issuance of shares in exchange for noncontrolling interest
|
367
|
—
|
—
|
||||||||||||||||||
Fair value adjustment of redeemable noncontrolling interest
|
(106
|
)
|
—
|
—
|
|||||||||||||||||
Reclassification from redeemable noncontrolling interest
|
(17
|
)
|
—
|
—
|
|||||||||||||||||
Issuance of shares in public offering, net of issue costs
|
—
|
1,159
|
—
|
||||||||||||||||||
Obligation for distribution of qualifying additional paid-in capital
|
—
|
(1,041
|
)
|
—
|
|||||||||||||||||
Purchases of shares held in treasury
|
—
|
—
|
(240
|
)
|
|||||||||||||||||
Other, net
|
(3
|
)
|
—
|
(16
|
)
|
||||||||||||||||
Balance, end of period
|
$
|
15,730
|
$
|
15,627
|
$
|
21,340
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income (loss)
|
$
|
(211
|
)
|
$
|
(5,677
|
)
|
$
|
969
|
||||
Adjustments to reconcile to net cash provided by operating activities:
|
||||||||||||
Amortization of drilling contract intangibles
|
(42
|
)
|
(45
|
)
|
(98
|
)
|
||||||
Depreciation and amortization
|
1,123
|
1,109
|
1,009
|
|||||||||
Depreciation and amortization of assets in discontinued operations
|
183
|
342
|
580
|
|||||||||
Share-based compensation expense
|
97
|
95
|
102
|
|||||||||
Loss on impairment
|
140
|
5,201
|
—
|
|||||||||
Loss on impairment of assets in discontinued operations
|
986
|
38
|
1,012
|
|||||||||
(Gain) loss on disposal of assets, net
|
(36
|
)
|
12
|
(255
|
)
|
|||||||
Gain on disposal of assets in discontinued operations, net
|
(82
|
)
|
(183
|
)
|
(2
|
)
|
||||||
Amortization of debt issue costs, discounts and premiums, net
|
68
|
125
|
189
|
|||||||||
Deferred income taxes
|
(133
|
)
|
(62
|
)
|
(104
|
)
|
||||||
Other, net
|
72
|
144
|
(1
|
)
|
||||||||
Changes in deferred revenue, net
|
(54
|
)
|
(16
|
)
|
205
|
|||||||
Changes in deferred expenses, net
|
85
|
(61
|
)
|
(79
|
)
|
|||||||
Changes in operating assets and liabilities
|
512
|
803
|
379
|
|||||||||
Net cash provided by operating activities
|
2,708
|
1,825
|
3,906
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Capital expenditures
|
(1,303
|
)
|
(974
|
)
|
(1,349
|
)
|
||||||
Capital expenditures for discontinued operations
|
(106
|
)
|
(46
|
)
|
(42
|
)
|
||||||
Investment in business combination, net of cash acquired
|
—
|
(1,246
|
)
|
—
|
||||||||
Payment for settlement of forward exchange contract, net
|
—
|
(78
|
)
|
—
|
||||||||
Proceeds from disposal of assets, net
|
191
|
14
|
60
|
|||||||||
Proceeds from disposal of assets in discontinued operations, net
|
789
|
447
|
—
|
|||||||||
Proceeds from insurance recoveries for loss of drilling unit
|
—
|
—
|
560
|
|||||||||
Proceeds from sale of marketable securities
|
—
|
—
|
37
|
|||||||||
Other, net
|
40
|
(13
|
)
|
13
|
||||||||
Net cash used in investing activities
|
(389
|
)
|
(1,896
|
)
|
(721
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Changes in short
-
term borrowings, net
|
(260
|
)
|
(88
|
)
|
(193
|
)
|
||||||
Proceeds from debt
|
1,493
|
2,939
|
2,054
|
|||||||||
Repayments of debt
|
(2,282
|
)
|
(2,409
|
)
|
(2,565
|
)
|
||||||
Proceeds from restricted cash investments
|
311
|
479
|
—
|
|||||||||
Deposits to restricted cash investments
|
(167
|
)
|
(523
|
)
|
—
|
|||||||
Proceeds from share issuance
|
—
|
1,211
|
—
|
|||||||||
Distribution of qualifying additional paid-in capital
|
(278
|
)
|
(763
|
)
|
—
|
|||||||
Purchases of shares held in treasury
|
—
|
—
|
(240
|
)
|
||||||||
Financing costs
|
(24
|
)
|
(83
|
)
|
(15
|
)
|
||||||
Other, net
|
5
|
(29
|
)
|
(2
|
)
|
|||||||
Net cash provided by (used in) financing activities
|
(1,202
|
)
|
734
|
(961
|
)
|
|||||||
Net increase in cash and cash equivalents
|
1,117
|
663
|
2,224
|
|||||||||
Cash and cash equivalents at beginning of period
|
4,017
|
3,354
|
1,130
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
5,134
|
$
|
4,017
|
$
|
3,354
|
Years ended December 31,
|
||||||||
2011
|
2010
|
|||||||
Legal and other costs
|
$
|
(67
|
)
|
$
|
—
|
|||
Repair and maintenance costs
|
11
|
(11
|
)
|
|||||
Income tax (expense) benefit
|
16
|
(4
|
)
|
|||||
Other immaterial adjustments, net
|
9
|
(4
|
)
|
|||||
Net adjustment to income from continuing operations
|
(31
|
)
|
(19
|
)
|
||||
Net adjustment to income from discontinued operations, net of tax
|
(14
|
)
|
—
|
|||||
Net adjustment to net income attributable to noncontrolling interest
|
16
|
(16
|
)
|
|||||
Net adjustment to net income attributable to controlling interest
|
$
|
(29
|
)
|
$
|
(35
|
)
|
Year ended December 31, 2011
|
Year ended December 31, 2010
|
|||||||||||||||||||||||
Previously reported
|
Adjustments
|
As
adjusted
|
Previously reported
|
Adjustments
|
As
adjusted
|
|||||||||||||||||||
Operating revenues
|
||||||||||||||||||||||||
Contract drilling revenues
|
$
|
7,413
|
$
|
(6
|
)
|
$
|
7,407
|
$
|
7,698
|
$
|
—
|
$
|
7,698
|
|||||||||||
Other revenues
|
620
|
—
|
620
|
251
|
—
|
251
|
||||||||||||||||||
8,033
|
(6
|
)
|
8,027
|
7,949
|
—
|
7,949
|
||||||||||||||||||
Costs and expenses
|
||||||||||||||||||||||||
Operating and maintenance
|
6,134
|
45
|
6,179
|
4,204
|
15
|
4,219
|
||||||||||||||||||
Depreciation and amortization
|
1,113
|
(4
|
)
|
1,109
|
1,009
|
—
|
1,009
|
|||||||||||||||||
General and administrative
|
288
|
—
|
288
|
246
|
—
|
246
|
||||||||||||||||||
7,535
|
41
|
7,576
|
5,459
|
15
|
5,474
|
|||||||||||||||||||
Loss on impairment
|
(5,201
|
)
|
—
|
(5,201
|
)
|
—
|
—
|
—
|
||||||||||||||||
Gain (loss) on disposal of assets, net
|
(12
|
)
|
—
|
(12
|
)
|
255
|
—
|
255
|
||||||||||||||||
Operating income (loss)
|
(4,715
|
)
|
(47
|
)
|
(4,762
|
)
|
2,745
|
(15
|
)
|
2,730
|
||||||||||||||
Other income (expense), net
|
||||||||||||||||||||||||
Interest income
|
44
|
—
|
44
|
23
|
—
|
23
|
||||||||||||||||||
Interest expense, net of amounts capitalized
|
(621
|
)
|
—
|
(621
|
)
|
(567
|
)
|
—
|
(567
|
)
|
||||||||||||||
Other, net
|
(99
|
)
|
—
|
(99
|
)
|
(31
|
)
|
—
|
(31
|
)
|
||||||||||||||
(676
|
)
|
—
|
(676
|
)
|
(575
|
)
|
—
|
(575
|
)
|
|||||||||||||||
Income (loss) from continuing operations before income tax expense
|
(5,391
|
)
|
(47
|
)
|
(5,438
|
)
|
2,170
|
(15
|
)
|
2,155
|
||||||||||||||
Income tax (benefit) expense
|
340
|
(16
|
)
|
324
|
288
|
4
|
292
|
|||||||||||||||||
Income (loss) from continuing operations
|
(5,731
|
)
|
(31
|
)
|
(5,762
|
)
|
1,882
|
(19
|
)
|
1,863
|
||||||||||||||
Income (loss) from discontinued operations, net of tax
|
99
|
(14
|
)
|
85
|
(894
|
)
|
—
|
(894
|
)
|
|||||||||||||||
Net income (loss)
|
(5,632
|
)
|
(45
|
)
|
(5,677
|
)
|
988
|
(19
|
)
|
969
|
||||||||||||||
Net income (loss) attributable to noncontrolling interest
|
93
|
(16
|
)
|
77
|
27
|
16
|
43
|
|||||||||||||||||
Net income (loss) attributable to controlling interest
|
$
|
(5,725
|
)
|
$
|
(29
|
)
|
$
|
(5,754
|
)
|
$
|
961
|
$
|
(35
|
)
|
$
|
926
|
||||||||
Earnings (loss) per share-basic
|
||||||||||||||||||||||||
Earnings (loss) from continuing operations
|
$
|
(18.10
|
)
|
$
|
(0.04
|
)
|
$
|
(18.14
|
)
|
$
|
5.77
|
$
|
(0.11
|
)
|
$
|
5.66
|
||||||||
Earnings (loss) from discontinued operations
|
0.31
|
(0.05
|
)
|
0.26
|
(2.78
|
)
|
—
|
(2.78
|
)
|
|||||||||||||||
Earnings (loss) per share
|
$
|
(17.79
|
)
|
$
|
(0.09
|
)
|
$
|
(17.88
|
)
|
$
|
2.99
|
$
|
(0.11
|
)
|
$
|
2.88
|
||||||||
Earnings (loss) per share-diluted
|
||||||||||||||||||||||||
Earnings (loss) from continuing operations
|
$
|
(18.10
|
)
|
$
|
(0.04
|
)
|
$
|
(18.14
|
)
|
$
|
5.77
|
$
|
(0.11
|
)
|
$
|
5.66
|
||||||||
Earnings (loss) from discontinued operations
|
0.31
|
(0.05
|
)
|
0.26
|
(2.78
|
)
|
—
|
(2.78
|
)
|
|||||||||||||||
Earnings (loss) per share
|
$
|
(17.79
|
)
|
$
|
(0.09
|
)
|
$
|
(17.88
|
)
|
$
|
2.99
|
$
|
(0.11
|
)
|
$
|
2.88
|
December 31, 2011
|
December 31, 2010
|
|||||||||||||||||||||||
Previously reported
|
Adjustments
|
As
adjusted
|
Previously reported
|
Adjustments
|
As
adjusted
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
4,017
|
$
|
—
|
$
|
4,017
|
$
|
3,394
|
$
|
(40
|
)
|
$
|
3,354
|
|||||||||||
Accounts receivable, net
|
||||||||||||||||||||||||
Trade
|
2,049
|
—
|
2,049
|
1,653
|
—
|
1,653
|
||||||||||||||||||
Other
|
127
|
—
|
127
|
190
|
—
|
190
|
||||||||||||||||||
Materials and supplies, net
|
529
|
—
|
529
|
425
|
—
|
425
|
||||||||||||||||||
Deferred income taxes, net
|
142
|
—
|
142
|
115
|
—
|
115
|
||||||||||||||||||
Assets held for sale
|
26
|
—
|
26
|
—
|
—
|
—
|
||||||||||||||||||
Other current assets
|
719
|
(73
|
)
|
646
|
418
|
54
|
472
|
|||||||||||||||||
Total current assets
|
7,609
|
(73
|
)
|
7,536
|
6,195
|
14
|
6,209
|
|||||||||||||||||
Property and equipment
|
24,833
|
—
|
24,833
|
22,149
|
—
|
22,149
|
||||||||||||||||||
Property and equipment of consolidated variable interest entities
|
2,252
|
—
|
2,252
|
2,214
|
—
|
2,214
|
||||||||||||||||||
Less accumulated depreciation
|
6,301
|
(4
|
)
|
6,297
|
5,244
|
—
|
5,244
|
|||||||||||||||||
Property and equipment, net
|
20,784
|
4
|
20,788
|
19,119
|
—
|
19,119
|
||||||||||||||||||
Goodwill
|
3,205
|
12
|
3,217
|
8,132
|
—
|
8,132
|
||||||||||||||||||
Other assets
|
3,490
|
1
|
3,491
|
3,365
|
(11
|
)
|
3,354
|
|||||||||||||||||
Total assets
|
$
|
35,088
|
$
|
(56
|
)
|
$
|
35,032
|
$
|
36,811
|
$
|
3
|
$
|
36,814
|
|||||||||||
Liabilities and equity
|
||||||||||||||||||||||||
Accounts payable
|
$
|
880
|
$
|
—
|
$
|
880
|
$
|
832
|
$
|
—
|
$
|
832
|
||||||||||||
Accrued income taxes
|
86
|
—
|
86
|
109
|
—
|
109
|
||||||||||||||||||
Debt due within one year
|
1,942
|
—
|
1,942
|
1,917
|
—
|
1,917
|
||||||||||||||||||
Debt of consolidated variable interest entities due within one year
|
97
|
148
|
245
|
95
|
148
|
243
|
||||||||||||||||||
Other current liabilities
|
2,353
|
22
|
2,375
|
883
|
12
|
895
|
||||||||||||||||||
Total current liabilities
|
5,358
|
170
|
5,528
|
3,836
|
160
|
3,996
|
||||||||||||||||||
Long-term debt
|
10,756
|
—
|
10,756
|
8,354
|
—
|
8,354
|
||||||||||||||||||
Long-term debt of consolidated variable interest entities
|
741
|
(148
|
)
|
593
|
855
|
(148
|
)
|
707
|
||||||||||||||||
Deferred income taxes, net
|
491
|
(4
|
)
|
487
|
575
|
10
|
585
|
|||||||||||||||||
Other long-term liabilities
|
1,935
|
(10
|
)
|
1,925
|
1,791
|
—
|
1,791
|
|||||||||||||||||
Total long-term liabilities
|
13,923
|
(162
|
)
|
13,761
|
11,575
|
(138
|
)
|
11,437
|
||||||||||||||||
Commitments and contingencies
|
||||||||||||||||||||||||
Redeemable noncontrolling interest
|
116
|
—
|
116
|
25
|
16
|
41
|
||||||||||||||||||
Shares
|
4,982
|
—
|
4,982
|
4,482
|
—
|
4,482
|
||||||||||||||||||
Additional paid-in capital
|
7,211
|
—
|
7,211
|
7,504
|
—
|
7,504
|
||||||||||||||||||
Treasury shares, at cost
|
(240
|
)
|
—
|
(240
|
)
|
(240
|
)
|
—
|
(240
|
)
|
||||||||||||||
Retained earnings
|
4,244
|
(64
|
)
|
4,180
|
9,969
|
(35
|
)
|
9,934
|
||||||||||||||||
Accumulated other comprehensive loss
|
(496
|
)
|
—
|
(496
|
)
|
(332
|
)
|
—
|
(332
|
)
|
||||||||||||||
Total controlling interest shareholders’ equity
|
15,701
|
(64
|
)
|
15,637
|
21,383
|
(35
|
)
|
21,348
|
||||||||||||||||
Noncontrolling interest
|
(10
|
)
|
—
|
(10
|
)
|
(8
|
)
|
—
|
(8
|
)
|
||||||||||||||
Total equity
|
15,691
|
(64
|
)
|
15,627
|
21,375
|
(35
|
)
|
21,340
|
||||||||||||||||
Total liabilities and equity
|
$
|
35,088
|
$
|
(56
|
)
|
$
|
35,032
|
$
|
36,811
|
$
|
3
|
$
|
36,814
|
Years ended December 31,
|
|||||||||
2011
|
2010
|
||||||||
Operating revenues
|
$
|
8,339
|
$
|
8,280
|
|||||
Operating income (loss)
|
(4,616
|
)
|
2,848
|
||||||
Income (loss) from continuing operations
|
(5,664
|
)
|
1,899
|
||||||
Per share earnings (loss) from continuing operations
|
|||||||||
Basic
|
$
|
(17.84
|
)
|
$
|
5.77
|
||||
Diluted
|
$
|
(17.84
|
)
|
$
|
5.77
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Assets
|
Liabilities
|
Net carrying amount
|
Assets
|
Liabilities
|
Net carrying amount
|
||||||||||||||||||
Variable interest entity
|
|||||||||||||||||||||||
TPDI
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,562
|
$
|
673
|
$
|
889
|
|||||||||||
ADDCL
|
954
|
296
|
658
|
930
|
334
|
596
|
|||||||||||||||||
TDSOI
|
277
|
15
|
262
|
—
|
—
|
—
|
|||||||||||||||||
Total
|
$
|
1,231
|
$
|
311
|
$
|
920
|
$
|
2,492
|
$
|
1,007
|
$
|
1,485
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Current tax expense
|
$
|
183
|
$
|
386
|
$
|
396
|
||||||
Deferred tax benefit
|
(133
|
)
|
(62
|
)
|
(104
|
)
|
||||||
Income tax expense
|
$
|
50
|
$
|
324
|
$
|
292
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Income tax expense at the Swiss federal statutory rate
|
$
|
68
|
$
|
(426
|
)
|
$
|
168
|
|||||
Taxes on earnings subject to rates different than the Swiss federal statutory rate
|
141
|
221
|
72
|
|||||||||
Taxes on impairment loss subject to rates different than the Swiss federal statutory rate
|
5
|
409
|
—
|
|||||||||
Taxes on asset sales subject to rates different than the Swiss federal statutory rate
|
(1
|
)
|
—
|
—
|
||||||||
Taxes on litigation matters subject to rates different than the Swiss federal statutory rate
|
59
|
78
|
—
|
|||||||||
Changes in unrecognized tax benefits, net
|
(179
|
)
|
40
|
73
|
||||||||
Change in valuation allowance
|
1
|
19
|
4
|
|||||||||
Benefit from foreign tax credits
|
(38
|
)
|
(28
|
)
|
(23
|
)
|
||||||
Taxes on asset acquisition costs at rates lower than the Swiss federal statutory rate
|
—
|
8
|
—
|
|||||||||
Other, net
|
(6
|
)
|
3
|
(2
|
)
|
|||||||
Income tax expense
|
$
|
50
|
$
|
324
|
$
|
292
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Deferred tax assets
|
||||||||
Drilling contract intangibles
|
$
|
1
|
$
|
2
|
||||
Net operating loss carryforwards
|
380
|
331
|
||||||
Tax credit carryforwards
|
41
|
45
|
||||||
Accrued payroll expenses not currently deductible
|
95
|
79
|
||||||
Deferred income
|
86
|
65
|
||||||
Valuation allowance
|
(210
|
)
|
(183
|
)
|
||||
Other
|
108
|
104
|
||||||
Total deferred tax assets
|
501
|
443
|
||||||
Deferred tax liabilities
|
||||||||
Depreciation and amortization
|
(688
|
)
|
(746
|
)
|
||||
Drilling management services intangibles
|
—
|
—
|
||||||
Other
|
(37
|
)
|
(42
|
)
|
||||
Total deferred tax liabilities
|
(725
|
)
|
(788
|
)
|
||||
Net deferred tax liabilities
|
$
|
(224
|
)
|
$
|
(345
|
)
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Valuation allowance for non-current deferred tax assets
|
$
|
210
|
$
|
183
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Balance, beginning of period
|
$
|
515
|
$
|
485
|
$
|
460
|
||||||
Additions for current year tax positions
|
58
|
45
|
46
|
|||||||||
Additions for prior year tax positions
|
25
|
29
|
9
|
|||||||||
Reductions for prior year tax positions
|
(24
|
)
|
—
|
(11
|
)
|
|||||||
Settlements
|
(120
|
)
|
(42
|
)
|
(17
|
)
|
||||||
Reductions related to statute of limitation expirations
|
(72
|
)
|
(2
|
)
|
(2
|
)
|
||||||
Balance, end of period
|
$
|
382
|
$
|
515
|
$
|
485
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Unrecognized tax benefits, excluding interest and penalties
|
$
|
382
|
$
|
515
|
||||
Interest and penalties
|
199
|
256
|
||||||
Unrecognized tax benefits, including interest and penalties
|
$
|
581
|
$
|
771
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating revenues
|
$
|
1,055
|
$
|
1,171
|
$
|
1,627
|
||||||
Operating and maintenance expense
|
(990
|
)
|
(871
|
)
|
(916
|
)
|
||||||
Depreciation and amortization expense
|
(183
|
)
|
(342
|
)
|
(580
|
)
|
||||||
Loss on impairment of assets in discontinued operations, net
|
(986
|
)
|
(38
|
)
|
(1,012
|
)
|
||||||
Gain on disposal of discontinued operations, net
|
82
|
183
|
2
|
|||||||||
Other income, net
|
—
|
18
|
8
|
|||||||||
Income (loss) from discontinued operations before income tax expense
|
(1,022
|
)
|
121
|
(871
|
)
|
|||||||
Income tax expense
|
(5
|
)
|
(36
|
)
|
(23
|
)
|
||||||
Income (loss) from discontinued operations, net of tax
|
$
|
(1,027
|
)
|
$
|
85
|
$
|
(894
|
)
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Rigs and related equipment, net
|
$
|
104
|
$
|
—
|
||||
Materials and supplies
|
71
|
—
|
||||||
Oil and gas properties, net
|
—
|
24
|
||||||
Other related assets
|
4
|
2
|
||||||
Assets held for sale
|
$
|
179
|
$
|
26
|
||||
Materials and supplies
|
$
|
—
|
$
|
98
|
||||
Other assets
|
—
|
21
|
||||||
Other current assets
|
$
|
—
|
$
|
119
|
||||
Rig and related equipment, net
|
$
|
—
|
$
|
1,745
|
||||
Intangible assets
|
—
|
70
|
||||||
Deferred costs
|
—
|
42
|
||||||
Other assets
|
$
|
—
|
$
|
1,857
|
||||
Liabilities
|
||||||||
Deferred revenues
|
$
|
32
|
$
|
17
|
||||
Deferred income taxes, net
|
—
|
6
|
||||||
Other liabilities
|
3
|
14
|
||||||
Other current liabilities
|
$
|
35
|
$
|
37
|
||||
Deferred revenues
|
$
|
—
|
$
|
8
|
||||
Deferred taxes, net
|
—
|
32
|
||||||
Other long-term liabilities
|
$
|
—
|
$
|
40
|
Years ended December 31,
|
||||||||||||||||||||||||
2012
|
2011
|
2010
|
||||||||||||||||||||||
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||||||||||||
Numerator for earnings (loss) per share
|
||||||||||||||||||||||||
Income (loss) from continuing operations attributable to controlling interest
|
$
|
808
|
$
|
808
|
$
|
(5,839
|
)
|
$
|
(5,839
|
)
|
$
|
1,820
|
$
|
1,820
|
||||||||||
Undistributed earnings allocable to participating securities
|
—
|
—
|
—
|
—
|
(10
|
)
|
(10
|
)
|
||||||||||||||||
Income (loss) from continuing operations available to shareholders
|
$
|
808
|
$
|
808
|
$
|
(5,839
|
)
|
$
|
(5,839
|
)
|
$
|
1,810
|
$
|
1,810
|
||||||||||
Denominator for earnings (loss) per share
|
||||||||||||||||||||||||
Weighted
-
average shares outstanding
|
356
|
356
|
322
|
322
|
320
|
320
|
||||||||||||||||||
Effect of stock options and other share
-
based awards
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Weighted
-
average shares for per share calculation
|
356
|
356
|
322
|
322
|
320
|
320
|
||||||||||||||||||
Per share earnings (loss) from continuing operations
|
$
|
2.27
|
$
|
2.27
|
$
|
(18.14
|
)
|
$
|
(18.14
|
)
|
$
|
5.66
|
$
|
5.66
|
Years ended December 31,
|
|||||||||||||||||||||||||||||||||||
2012
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||
Controlling interest
|
Non-controlling interest (a)
|
Total
|
Controlling interest
|
Non-controlling interest (a)
|
Total
|
Controlling interest
|
Non-controlling interest (a)
|
Total
|
|||||||||||||||||||||||||||
Unrecognized components of net periodic benefit costs
|
$
|
(52
|
)
|
$
|
—
|
$
|
(52
|
)
|
$
|
(204
|
)
|
$
|
—
|
$
|
(204
|
)
|
$
|
(8)
|
$
|
—
|
$
|
(8
|
)
|
||||||||||||
Unrecognized gain (loss) on derivative instruments
|
6
|
(3
|
)
|
3
|
3
|
(16
|
)
|
(13
|
)
|
(10
|
)
|
(19
|
)
|
(29
|
)
|
||||||||||||||||||||
Unrecognized loss on marketable securities
|
—
|
—
|
—
|
(13
|
)
|
—
|
(13
|
)
|
—
|
—
|
—
|
||||||||||||||||||||||||
Recognized components of net periodic benefit costs
|
47
|
—
|
47
|
25
|
—
|
25
|
16
|
—
|
16
|
||||||||||||||||||||||||||
Recognized (gain) loss on derivative instruments
|
(4
|
)
|
3
|
(1
|
)
|
(1
|
)
|
12
|
11
|
14
|
(2)
|
12
|
|||||||||||||||||||||||
Recognized loss on marketable securities
|
2
|
—
|
2
|
13
|
—
|
13
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Other comprehensive income (loss) before income taxes
|
(1
|
)
|
—
|
(1
|
)
|
(177
|
)
|
(4
|
)
|
(181
|
)
|
12
|
(21
|
)
|
(9
|
)
|
|||||||||||||||||||
Income taxes related to other comprehensive income (loss)
|
(7
|
)
|
—
|
(7
|
)
|
13
|
—
|
13
|
(9)
|
—
|
(9
|
)
|
|||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
$
|
(8
|
)
|
$
|
—
|
$
|
(8
|
)
|
$
|
(164
|
)
|
$
|
(4
|
)
|
$
|
(168
|
)
|
$
|
3
|
$
|
(21
|
)
|
$
|
(18
|
)
|
(a)
|
Includes amounts attributable to noncontrolling interest and redeemable noncontrolling interest.
|
Years ended December 31
,
|
||||||||||||
2012
|
2011
|
201
0
|
||||||||||
Construction work in progress, at beginning of period
|
$
|
1,360
|
$
|
1,450
|
$
|
3,657
|
||||||
Newbuild construction program
|
||||||||||||
Ultra-Deepwater Floater TBN1 (a)
|
139
|
—
|
—
|
|||||||||
Ultra-Deepwater Floater TBN2 (a)
|
128
|
—
|
—
|
|||||||||
Ultra-Deepwater Floater TBN3 (a)
|
76
|
—
|
—
|
|||||||||
Ultra-Deepwater Floater TBN4 (a)
|
76
|
—
|
—
|
|||||||||
Transocean Ao Thai (b)
|
72
|
80
|
—
|
|||||||||
Deepwater Asgard (c)
|
46
|
4
|
—
|
|||||||||
Deepwater Invictus (c)
|
40
|
3
|
—
|
|||||||||
Transocean Siam Driller (b)
|
39
|
113
|
9
|
|||||||||
Transocean Andaman (b)
|
38
|
113
|
9
|
|||||||||
Transocean Honor (d)
|
35
|
129
|
98
|
|||||||||
Deepwater Champion (e)
|
—
|
76
|
249
|
|||||||||
Discoverer India (f)
|
—
|
—
|
262
|
|||||||||
Discoverer Luanda (g)
|
—
|
—
|
212
|
|||||||||
Dhirubhai Deepwater KG2 (h)
|
—
|
—
|
45
|
|||||||||
Discoverer Inspiration (h)
|
—
|
—
|
33
|
|||||||||
Other construction projects and capital additions
|
614
|
456
|
432
|
|||||||||
Total capital expenditures
|
1,303
|
974
|
1,349
|
|||||||||
Acquisition of construction work in progress (c)
|
—
|
272
|
—
|
|||||||||
Changes in accrued capital expenditures
|
61
|
(2
|
)
|
(57
|
)
|
|||||||
Property and equipment placed into service
|
||||||||||||
Transocean Honor (d)
|
(262
|
)
|
—
|
—
|
||||||||
Deepwater Champion (e)
|
—
|
(881
|
)
|
—
|
||||||||
Discoverer India (f)
|
—
|
—
|
(835
|
)
|
||||||||
Discoverer Luanda (g)
|
—
|
—
|
(783
|
)
|
||||||||
Discoverer Inspiration (h)
|
—
|
—
|
(781
|
)
|
||||||||
Dhirubhai Deepwater KG2 (h)
|
—
|
—
|
(707
|
)
|
||||||||
Other property and equipment
|
(490
|
)
|
(453
|
)
|
(393
|
)
|
||||||
Construction work in progress, at end of period
|
$
|
1,972
|
$
|
1,360
|
$
|
1,450
|
(a)
|
Our four newbuild Ultra-Deepwater drillships, under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the fourth quarter of 2015, the second quarter of 2016, the fourth quarter of 2016 and the first quarter of 2017.
|
(b)
|
Transocean Siam Driller,
Transocean Andaman and Transocean Ao Thai,
three
Keppel FELS Super B class design High-Specification Jackups, under construction at Keppel FELS’ yard in Singapore, are expected to commence operations in the first quarter of 2013, the second quarter of 2013 and the fourth quarter of 2013, respectively.
|
(c)
|
Deepwater Asgard
and
Deepwater Invictus
, two Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to be ready to commence operations in the second quarter of 2014. In the year ended December 31, 2011, we acquired the construction work in progress associated with these Ultra-Deepwater drillships with an aggregate estimated fair value of $272 million. See Note 5—Business Combination.
|
(d)
|
Transocean Honor
, a PPL Pacific Class 400 design High-Specification Jackup, owned through our 70 percent interest in TDSOI, commenced operations in May 2012. The costs presented above represent 100 percent of TDSOI’s expenditures in the construction of
Transocean Honor
.
|
(e)
|
Deepwater Champion
, an Ultra-Deepwater drillship, commenced operations in May 2011.
|
(f)
|
Discoverer India
, an Ultra-Deepwater drillship, commenced operations in December 2010.
|
(g)
|
Discover Luanda
, an Ultra-Deepwater drillship, owned through our 65 percent interest in ADDCL, commenced operations in December 2010. The costs presented above represent 100 percent of ADDCL’s expenditures in the construction of
Discover Luanda.
|
(h)
|
Discoverer Inspiration
and
Dhirubhai Deepwater KG2
, two Ultra-Deepwater drillships, commenced operations in March 2010.
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||
Gross
carrying
amount
|
Accumulated
impairment
|
Net
carrying
amount
|
Gross
carrying
amount
|
Accumulated
impairment
|
Net
carrying
amount
|
|||||||||||||||||||
Balance, beginning of period
|
$
|
10,911
|
$
|
(7,694
|
)
|
$
|
3,217
|
$
|
10,626
|
$
|
(2,494
|
)
|
$
|
8,132
|
||||||||||
Impairment associated with continuing operations
|
—
|
(118
|
)
|
(118
|
)
|
—
|
(5,200
|
)
|
(5,200
|
)
|
||||||||||||||
Reclassified balance associated with discontinued operations (a)
|
(112
|
)
|
—
|
(112
|
)
|
—
|
—
|
—
|
||||||||||||||||
Business combination
|
—
|
—
|
—
|
285
|
—
|
285
|
||||||||||||||||||
Balance, end of period
|
$
|
10,799
|
$
|
(7,812
|
)
|
$
|
2,987
|
$
|
10,911
|
$
|
(7,694
|
)
|
$
|
3,217
|
(a)
|
As a result of our decision to discontinue operations associated with the Standard Jackups and swamp barge components of our contract drilling services operating segment, we allocated $112 million of goodwill attributable to such operations, which was subsequently impaired. See Note 9—Discontinued Operations.
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||
Gross
carrying
amount
|
Accumulated
impairment
|
Net
carrying
amount
|
Gross
carrying
amount
|
Accumulated
impairment
|
Net
carrying
amount
|
|||||||||||||||||||
Trade name
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
76
|
$
|
(37
|
)
|
$
|
39
|
$
|
76
|
$
|
(37
|
)
|
$
|
39
|
||||||||||
Reclassified balance associated with discontinued operations (a)
|
(76
|
)
|
37
|
(39
|
)
|
—
|
—
|
—
|
||||||||||||||||
Balance, end of period
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
76
|
$
|
(37
|
)
|
$
|
39
|
(a)
|
As a result of our decision to discontinue the U.S. operations of our drilling management services operating segment, we reclassified the balances attributable to such operations. See Note 9—Discontinued Operations.
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||
Gross
carrying
amount
|
Accumulated
amortization
and impairment
|
Net
carrying
amount
|
Gross
carrying
amount
|
Accumulated
amortization
and impairment
|
Net
carrying
amount
|
|||||||||||||||||||
Drilling contract intangible assets
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
191
|
$
|
(191
|
)
|
$
|
—
|
$
|
191
|
$
|
(185
|
)
|
$
|
6
|
||||||||||
Amortization
|
—
|
—
|
—
|
—
|
(6
|
)
|
(6
|
)
|
||||||||||||||||
Reclassified balance associated with discontinued operations (a)
|
(182
|
)
|
182
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Balance, end of period
|
9
|
9
|
—
|
191
|
(191
|
)
|
—
|
|||||||||||||||||
Customer relationships
|
||||||||||||||||||||||||
Balance, beginning of period
|
148
|
(94
|
)
|
54
|
148
|
(89
|
)
|
59
|
||||||||||||||||
Amortization
|
—
|
(1
|
)
|
(1
|
)
|
—
|
(5
|
)
|
(5
|
)
|
||||||||||||||
Impairment associated with continuing operations
|
—
|
(22
|
)
|
(22
|
)
|
—
|
—
|
—
|
||||||||||||||||
Reclassified balance associated with discontinued operations (b)
|
(88
|
)
|
57
|
(31
|
)
|
—
|
—
|
—
|
||||||||||||||||
Balance, end of period
|
60
|
(60
|
)
|
—
|
148
|
(94
|
)
|
54
|
||||||||||||||||
Total definite
-
lived intangible assets
|
||||||||||||||||||||||||
Balance, beginning of period
|
339
|
(285
|
)
|
|
54
|
339
|
(274
|
)
|
65
|
|||||||||||||||
Amortization
|
—
|
(1
|
)
|
(1
|
)
|
—
|
(11
|
)
|
(11
|
)
|
||||||||||||||
Impairment associated with continuing operations
|
—
|
(22
|
)
|
(22
|
)
|
—
|
—
|
—
|
||||||||||||||||
Reclassified balance associated with discontinued operations (b)
|
(270
|
)
|
239
|
(31
|
)
|
—
|
—
|
—
|
||||||||||||||||
Balance, end of period
|
$
|
69
|
$
|
(69
|
)
|
$
|
—
|
$
|
339
|
$
|
(285
|
)
|
$
|
54
|
||||||||||
Drilling contract intangible liabilities
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,494
|
$
|
(1,393
|
)
|
$
|
101
|
$
|
1,494
|
$
|
(1,342
|
)
|
$
|
152
|
||||||||||
Amortization
|
—
|
(42
|
)
|
(42
|
)
|
—
|
(51
|
)
|
(51
|
)
|
||||||||||||||
Reclassified balance associated with discontinued operations (a)
|
(84
|
)
|
84
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Balance, end of period
|
$
|
1,410
|
$
|
(1,351
|
)
|
$
|
59
|
$
|
1,494
|
$
|
(1,393
|
)
|
$
|
101
|
(a)
|
As a result of our decision to discontinue operations associated with the Standard Jackup and swamp barge asset groups, we reclassified the balances attributable to such operations. See Note 9—Discontinued Operations.
|
(b)
|
As a result of our decision to discontinue the U.S. operations of our drilling management services operating segment, we reclassified the balances attributable to such operations. See Note 9—Discontinued Operations.
|
Drilling
contract intangible liabilities
|
|||||||
Years ending December 31,
|
|||||||
2013
|
$
|
24
|
|||||
2014
|
15
|
||||||
2015
|
14
|
||||||
2016
|
6
|
||||||
Total intangible liabilities
|
$
|
59
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Transocean
Ltd.
and
subsidiaries
|
Consolidated
variable
interest
entities
|
Consolidated
total
|
Transocean
Ltd.
and
subsidiaries
|
Consolidated
variable
interest
entities
|
Consolidated
total
|
||||||||||||||||||
5% Notes due February 2013
|
$
|
250
|
$
|
—
|
$
|
250
|
$
|
253
|
$
|
—
|
$
|
253
|
|||||||||||
5.25% Senior Notes due March 2013 (a)
|
502
|
—
|
502
|
507
|
—
|
507
|
|||||||||||||||||
TPDI Credit Facilities due March 2015
|
403
|
—
|
403
|
—
|
473
|
473
|
|||||||||||||||||
4.95% Senior Notes due November 2015 (a)
|
1,118
|
—
|
1,118
|
1,120
|
—
|
1,120
|
|||||||||||||||||
Aker Revolving Credit and Term Loan Facility due December 2015
|
—
|
—
|
—
|
594
|
—
|
594
|
|||||||||||||||||
Callable Bonds due February 2016
|
282
|
—
|
282
|
267
|
—
|
267
|
|||||||||||||||||
5.05% Senior Notes due December 2016 (a)
|
999
|
—
|
999
|
999
|
—
|
999
|
|||||||||||||||||
2.5% Senior Notes due October 2017 (a)
|
748
|
—
|
748
|
—
|
—
|
—
|
|||||||||||||||||
ADDCL Credit Facilities due December 2017
|
—
|
191
|
191
|
—
|
217
|
217
|
|||||||||||||||||
Eksportfinans Loans due January 2018
|
797
|
—
|
797
|
884
|
—
|
884
|
|||||||||||||||||
6.00% Senior Notes due March 2018 (a)
|
998
|
—
|
998
|
998
|
—
|
998
|
|||||||||||||||||
7.375% Senior Notes due April 2018 (a)
|
247
|
—
|
247
|
247
|
—
|
247
|
|||||||||||||||||
TPDI Notes due October 2019
|
—
|
—
|
—
|
—
|
148
|
148
|
|||||||||||||||||
6.50% Senior Notes due November 2020 (a)
|
899
|
—
|
899
|
899
|
—
|
899
|
|||||||||||||||||
6.375% Senior Notes due December 2021 (a)
|
1,199
|
—
|
1,199
|
1,199
|
—
|
1,199
|
|||||||||||||||||
3.8% Senior Notes due October 2022 (a)
|
745
|
—
|
745
|
—
|
—
|
—
|
|||||||||||||||||
7.45% Notes due April 2027 (a)
|
97
|
—
|
97
|
97
|
—
|
97
|
|||||||||||||||||
8% Debentures due April 2027 (a)
|
57
|
—
|
57
|
57
|
—
|
57
|
|||||||||||||||||
7% Notes due June 2028
|
311
|
—
|
311
|
311
|
—
|
311
|
|||||||||||||||||
Capital lease contract due August 2029
|
657
|
—
|
657
|
676
|
—
|
676
|
|||||||||||||||||
7.5% Notes due April 2031 (a)
|
598
|
—
|
598
|
598
|
—
|
598
|
|||||||||||||||||
1.50% Series B Convertible Senior Notes due December 2037 (a)
|
—
|
—
|
—
|
30
|
—
|
30
|
|||||||||||||||||
1.50% Series C Convertible Senior Notes due December 2037 (a)
|
62
|
—
|
62
|
1,663
|
—
|
1,663
|
|||||||||||||||||
6.80% Senior Notes due March 2038 (a)
|
999
|
—
|
999
|
999
|
—
|
999
|
|||||||||||||||||
7.35% Senior Notes due December 2041 (a)
|
300
|
—
|
300
|
300
|
—
|
300
|
|||||||||||||||||
Total debt
|
12,268
|
191
|
12,459
|
12,698
|
838
|
13,536
|
|||||||||||||||||
Less debt due within one year
|
|||||||||||||||||||||||
5% Notes due February 2013
|
250
|
—
|
250
|
—
|
—
|
—
|
|||||||||||||||||
5.25% Senior Notes due March 2013 (a)
|
502
|
—
|
502
|
—
|
—
|
—
|
|||||||||||||||||
TPDI Credit Facilities due March 2015
|
70
|
—
|
70
|
—
|
70
|
70
|
|||||||||||||||||
Aker Revolving Credit and Term Loan Facility due December 2015
|
—
|
—
|
—
|
90
|
—
|
90
|
|||||||||||||||||
Callable Bonds due February 2016
|
282
|
—
|
282
|
—
|
—
|
—
|
|||||||||||||||||
ADDCL Credit Facilities due December 2017
|
—
|
28
|
28
|
—
|
27
|
27
|
|||||||||||||||||
Eksportfinans Loans due January 2018
|
153
|
—
|
153
|
142
|
—
|
142
|
|||||||||||||||||
TPDI Notes due October 2019
|
—
|
—
|
—
|
—
|
148
|
148
|
|||||||||||||||||
Capital lease contract due August 2029
|
20
|
—
|
20
|
17
|
—
|
17
|
|||||||||||||||||
1.50% Series B Convertible Senior Notes due December 2037 (a)
|
—
|
—
|
—
|
30
|
—
|
30
|
|||||||||||||||||
1.50% Series C Convertible Senior Notes due December 2037 (a)
|
62
|
—
|
62
|
1,663
|
—
|
1,663
|
|||||||||||||||||
Total debt due within one year
|
1,339
|
28
|
1,367
|
1,942
|
245
|
2,187
|
|||||||||||||||||
Total long-term debt
|
$
|
10,929
|
$
|
163
|
$
|
11,092
|
$
|
10,756
|
$
|
593
|
$
|
11,349
|
(a)
|
Transocean Inc., a 100 percent owned subsidiary of Transocean Ltd., is the issuer of the notes and debentures, which have been guaranteed by Transocean Ltd. Transocean Ltd. has also guaranteed borrowings under the Five-Year Revolving Credit Facility and the Three-Year Secured Revolving Credit Facility. Transocean Ltd. and Transocean Inc. are not subject to any significant restrictions on their ability to obtain funds from their consolidated subsidiaries by dividends, loans or return of capital distributions. See Note 26—Condensed Consolidating Financial Information.
|
Transocean
Ltd.
and
subsidiaries
|
Consolidated
variable
interest
entities
|
Consolidated
total
|
||||||||||
Years ending December 31,
|
||||||||||||
2013
|
$
|
1,053
|
$
|
28
|
$
|
1,081
|
||||||
2014
|
244
|
30
|
274
|
|||||||||
2015
|
1,539
|
61
|
1,600
|
|||||||||
2016
|
1,448
|
35
|
1,483
|
|||||||||
2017
|
930
|
37
|
967
|
|||||||||
Thereafter
|
7,032
|
—
|
7,032
|
|||||||||
Total debt, excluding unamortized discounts, premiums and fair value adjustments
|
12,246
|
191
|
12,437
|
|||||||||
Total unamortized discounts, premiums and fair value adjustments
|
22
|
—
|
22
|
|||||||||
Total debt
|
$
|
12,268
|
$
|
191
|
$
|
12,459
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Principal amount
|
Unamortized discount
|
Carrying amount
|
Principal amount
|
Unamortized discount
|
Carrying amount
|
||||||||||||||||||
Carrying amount of liability component
|
|||||||||||||||||||||||
Series B Convertible Senior Notes due 2037
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
30
|
$
|
—
|
$
|
30
|
|||||||||||
Series C Convertible Senior Notes due 2037
|
62
|
—
|
62
|
1,722
|
(59
|
)
|
1,663
|
December 31,
|
|||||||||
2012
|
2011
|
||||||||
Carrying amount of equity component
|
|||||||||
Series B Convertible Senior Notes due 2037
|
$
|
—
|
$
|
4
|
|||||
Series C Convertible Senior Notes due 2037
|
10
|
276
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Interest expense
|
||||||||||||
Series A Convertible Senior Notes due 2037
|
$
|
—
|
$
|
—
|
$
|
58
|
||||||
Series B Convertible Senior Notes due 2037
|
—
|
78
|
98
|
|||||||||
Series C Convertible Senior Notes due 2037
|
84
|
84
|
98
|
Pay
|
Receive
|
||||||||||||||||||||
Aggregate
notional
amount
|
Fixed or variable rate
|
Weighted average
rate
|
Aggregate
notional
amount
|
Fixed or variable rate
|
Weighted average
rate
|
||||||||||||||||
Interest rate swaps, fair value hedges
|
$
|
750
|
variable
|
3.5
|
%
|
$
|
750
|
fixed
|
5.2
|
%
|
|||||||||||
Interest rate swaps, cash flow hedges
|
$
|
385
|
fixed
|
2.4
|
%
|
$
|
385
|
variable
|
0.3
|
%
|
|||||||||||
Cross-currency swaps, cash flow hedges
|
$
|
102
|
fixed
|
8.9
|
%
|
NOK
|
560
|
fixed
|
11.0
|
%
|
Years ended December 31,
|
||||||||||||||
Statement of operations classification
|
2012
|
2011
|
2010
|
|||||||||||
Loss associated with effective portion
|
Interest expense, net of amounts capitalized
|
$
|
(5
|
)
|
$
|
(11
|
)
|
$
|
(12
|
)
|
||||
Gain associated with effective portion
|
Other, net
|
6
|
—
|
—
|
December
31,
|
||||||||||
Balance sheet classification
|
2012
|
2011
|
||||||||
Interest rate swaps, fair value hedges
|
Other current assets
|
$
|
6
|
$
|
5
|
|||||
Interest rate swaps, fair value hedges
|
Other assets
|
—
|
31
|
|||||||
Interest rate swaps, cash flow hedges
|
Other long-term liabilities
|
13
|
16
|
|||||||
Cross-currency swaps, cash flow hedges
|
Other current assets
|
1
|
—
|
|||||||
Cross-currency swaps, cash flow hedges
|
Other assets
|
1
|
—
|
|||||||
Cross-currency swaps, cash flow hedges
|
Other long-term liabilities
|
—
|
7
|
Years ended December 31,
|
||||||||||||||
Statement of operations classification
|
2012
|
2011
|
2010
|
|||||||||||
Loss associated with undesignated interest rate swaps
|
Interest expense, net of amounts capitalized
|
$
|
(1
|
)
|
$
|
—
|
$
|
—
|
||||||
Loss associated with undesignated forward exchange contract
|
Other, net
|
—
|
(78
|
)
|
—
|
December
31,
|
||||||||||
Balance sheet classification
|
2012
|
2011
|
||||||||
Interest rate swaps not designated as hedging instruments
|
Other long-term liabilities
|
$
|
—
|
$
|
15
|
|||||
Embedded derivatives not designated as hedging instruments
|
Other long-term liabilities
|
2
|
—
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
|||||||||||||||||||
Discount rate
|
4.19
|
%
|
5.37
|
%
|
3.63
|
%
|
4.66
|
%
|
4.90
|
%
|
4.28
|
%
|
||||||||||||
Compensation trend rate
|
4.21
|
%
|
4.38
|
%
|
n/a
|
4.22
|
%
|
4.30
|
%
|
n/a
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
Year ended December 31, 2010
|
||||||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB Plans
|
||||||||||||||||||||||||||||
Discount rate
|
4.67
|
%
|
5.43
|
%
|
4.27
|
%
|
5.49
|
%
|
5.73
|
%
|
4.94
|
%
|
5.86
|
%
|
5.67
|
%
|
5.51
|
%
|
||||||||||||||||||
Expected rate of return
|
7.47
|
%
|
6.07
|
%
|
n/a
|
8.49
|
%
|
6.42
|
%
|
n/a
|
8.49
|
%
|
6.65
|
%
|
n/a
|
|||||||||||||||||||||
Compensation trend rate
|
4.22
|
%
|
4.61
|
%
|
n/a
|
4.24
|
%
|
4.62
|
%
|
n/a
|
4.21
|
%
|
4.77
|
%
|
n/a
|
|||||||||||||||||||||
Health care cost trend rate
|
||||||||||||||||||||||||||||||||||||
-initial
|
n/a
|
n/a
|
8.08
|
%
|
n/a
|
n/a
|
8.08
|
%
|
n/a
|
n/a
|
8.00
|
%
|
||||||||||||||||||||||||
-ultimate
|
n/a
|
n/a
|
5.00
|
%
|
n/a
|
n/a
|
5.00
|
%
|
n/a
|
n/a
|
5.00
|
%
|
||||||||||||||||||||||||
-
ultimate year
|
n/a
|
n/a
|
2019
|
n/a
|
n/a
|
2018
|
n/a
|
n/a
|
2016
|
|
“n/a” means not applicable.
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||||||||||||||
Change in projected benefit obligation
|
||||||||||||||||||||||||||||||||
Projected benefit obligation, beginning of period
|
$
|
1,260
|
$
|
447
|
$
|
53
|
$
|
1,760
|
$
|
1,068
|
$
|
374
|
$
|
56
|
$
|
1,498
|
||||||||||||||||
Assumed projected benefit obligation
|
—
|
—
|
—
|
—
|
—
|
17
|
—
|
17
|
||||||||||||||||||||||||
Actuarial (gains) losses, net
|
128
|
(15
|
)
|
4
|
117
|
128
|
24
|
(3)
|
149
|
|||||||||||||||||||||||
Service cost
|
49
|
31
|
1
|
81
|
43
|
21
|
1
|
65
|
||||||||||||||||||||||||
Interest cost
|
59
|
24
|
2
|
85
|
58
|
22
|
3
|
83
|
||||||||||||||||||||||||
Foreign currency exchange rate
|
—
|
19
|
—
|
19
|
—
|
(1
|
)
|
—
|
(1
|
)
|
||||||||||||||||||||||
Benefits paid
|
(45
|
)
|
(23
|
)
|
(3
|
)
|
(71
|
)
|
(37
|
)
|
(12
|
)
|
(5
|
)
|
(54
|
)
|
||||||||||||||||
Participant contributions
|
—
|
2
|
1
|
3
|
—
|
2
|
1
|
3
|
||||||||||||||||||||||||
Special termination benefits
|
1
|
—
|
—
|
1
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Settlements and curtailments
|
—
|
14
|
—
|
14
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Projected benefit obligation, end of period
|
1,452
|
499
|
58
|
2,009
|
1,260
|
447
|
53
|
1,760
|
||||||||||||||||||||||||
Change in plan assets
|
||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of period
|
769
|
351
|
—
|
1,120
|
697
|
332
|
—
|
1,029
|
||||||||||||||||||||||||
Fair value of acquired plan assets
|
—
|
—
|
—
|
—
|
—
|
9
|
—
|
9
|
||||||||||||||||||||||||
Actual return on plan assets
|
116
|
28
|
—
|
144
|
39
|
(8
|
)
|
—
|
31
|
|||||||||||||||||||||||
Foreign currency exchange rate changes
|
—
|
15
|
—
|
15
|
—
|
2
|
—
|
2
|
||||||||||||||||||||||||
Employer contributions
|
108
|
49
|
2
|
159
|
70
|
29
|
4
|
103
|
||||||||||||||||||||||||
Participant contributions
|
—
|
2
|
1
|
3
|
—
|
2
|
1
|
3
|
||||||||||||||||||||||||
Benefits paid
|
(45
|
)
|
(23
|
)
|
(3
|
)
|
(71
|
)
|
(37
|
)
|
(12
|
)
|
(5
|
)
|
(54
|
)
|
||||||||||||||||
Settlement and curtailments
|
—
|
—
|
—
|
—
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||||||||||||||
Fair value of plan assets, end of period
|
948
|
422
|
—
|
1,370
|
769
|
351
|
—
|
1,120
|
||||||||||||||||||||||||
Funded status, end of period
|
$
|
(504
|
)
|
$
|
(77
|
)
|
$
|
(58
|
)
|
$
|
(639
|
)
|
$
|
(491
|
)
|
$
|
(96
|
)
|
$
|
(53
|
)
|
$
|
(640
|
)
|
||||||||
Balance sheet classification, end of period:
|
||||||||||||||||||||||||||||||||
Pension asset, non
-
current
|
$
|
—
|
$
|
3
|
$
|
—
|
$
|
3
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||
Accrued pension liability, current
|
3
|
24
|
3
|
30
|
3
|
5
|
3
|
11
|
||||||||||||||||||||||||
Accrued pension liability, non
-
current
|
501
|
56
|
55
|
612
|
488
|
91
|
50
|
629
|
||||||||||||||||||||||||
Accumulated other comprehensive income (loss) (a)
|
(469
|
)
|
(80
|
)
|
(6
|
)
|
(555
|
)
|
(437
|
)
|
(111
|
)
|
(2
|
)
|
(550
|
)
|
(a)
|
Amounts are before income tax effect.
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||||||||||||||
Projected benefit obligation
|
$
|
1,452
|
$
|
482
|
$
|
58
|
$
|
1,992
|
$
|
1,260
|
$
|
447
|
$
|
53
|
$
|
1,760
|
||||||||||||||||
Fair value of plan assets
|
948
|
404
|
—
|
1,352
|
769
|
351
|
—
|
1,120
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||||||||||||||
Accumulated benefit obligation
|
$
|
1,255
|
$
|
335
|
$
|
58
|
$
|
1,648
|
$
|
1,083
|
$
|
288
|
$
|
53
|
$
|
1,424
|
||||||||||||||||
Fair value of plan assets
|
948
|
298
|
—
|
1,246
|
769
|
254
|
—
|
1,023
|
Actual allocation at December 31,
|
||||||||||||||||||||||||
Target allocation
|
2012
|
2011
|
||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
|||||||||||||||||||
Equity securities
|
65
|
%
|
49
|
%
|
64
|
%
|
49
|
%
|
64
|
%
|
47
|
%
|
||||||||||||
Fixed income securities
|
35
|
%
|
14
|
%
|
36
|
%
|
17
|
%
|
36
|
%
|
12
|
%
|
||||||||||||
Other investments
|
—
|
37
|
%
|
—
|
34
|
%
|
—
|
41
|
%
|
|||||||||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
December 31, 2012
|
||||||||||||||||||||||||||||||||||||
Significant observable inputs
|
Significant other observable inputs
|
Total
|
||||||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
||||||||||||||||||||||||||||
Mutual funds
|
||||||||||||||||||||||||||||||||||||
U.S. equity funds
|
$
|
525
|
$
|
—
|
$
|
525
|
$
|
—
|
$
|
32
|
$
|
32
|
$
|
525
|
$
|
32
|
$
|
557
|
||||||||||||||||||
Non-U.S. equity funds
|
120
|
—
|
120
|
3
|
176
|
179
|
123
|
176
|
299
|
|||||||||||||||||||||||||||
Bond funds
|
296
|
—
|
296
|
—
|
73
|
73
|
296
|
73
|
369
|
|||||||||||||||||||||||||||
Total mutual funds
|
941
|
—
|
941
|
3
|
281
|
284
|
944
|
281
|
1,225
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Other investments
|
||||||||||||||||||||||||||||||||||||
Cash and money market funds
|
4
|
2
|
6
|
—
|
6
|
6
|
4
|
8
|
12
|
|||||||||||||||||||||||||||
Property collective trusts
|
—
|
—
|
—
|
—
|
8
|
8
|
—
|
8
|
8
|
|||||||||||||||||||||||||||
Investment contracts
|
—
|
—
|
—
|
—
|
125
|
125
|
—
|
125
|
125
|
|||||||||||||||||||||||||||
Total other investments
|
4
|
2
|
6
|
—
|
139
|
139
|
4
|
141
|
145
|
|||||||||||||||||||||||||||
Total investments
|
$
|
945
|
$
|
2
|
$
|
947
|
$
|
3
|
$
|
420
|
$
|
423
|
$
|
948
|
$
|
422
|
$
|
1,370
|
December 31, 2011
|
||||||||||||||||||||||||||||||||||||
Significant observable inputs
|
Significant other observable inputs
|
Total
|
||||||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean
Plans
|
||||||||||||||||||||||||||||
Mutual funds
|
||||||||||||||||||||||||||||||||||||
U.S. equity funds
|
$
|
395
|
$
|
—
|
$
|
395
|
$
|
—
|
$
|
29
|
$
|
29
|
$
|
395
|
$
|
29
|
$
|
424
|
||||||||||||||||||
Non-U.S. equity funds
|
91
|
—
|
91
|
2
|
137
|
139
|
93
|
137
|
230
|
|||||||||||||||||||||||||||
Bond funds
|
278
|
—
|
278
|
—
|
43
|
43
|
278
|
43
|
321
|
|||||||||||||||||||||||||||
Total mutual funds
|
764
|
—
|
764
|
2
|
209
|
211
|
766
|
209
|
975
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Other investments
|
||||||||||||||||||||||||||||||||||||
Cash and money market funds
|
3
|
38
|
41
|
—
|
—
|
—
|
3
|
38
|
41
|
|||||||||||||||||||||||||||
Property collective trusts
|
—
|
—
|
—
|
—
|
8
|
8
|
—
|
8
|
8
|
|||||||||||||||||||||||||||
Investment contracts
|
—
|
—
|
—
|
—
|
96
|
96
|
—
|
96
|
96
|
|||||||||||||||||||||||||||
Total other investments
|
3
|
38
|
41
|
—
|
104
|
104
|
3
|
142
|
145
|
|||||||||||||||||||||||||||
Total investments
|
$
|
767
|
$
|
38
|
$
|
805
|
$
|
2
|
$
|
313
|
$
|
315
|
$
|
769
|
$
|
351
|
$
|
1,120
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
Year ended December 31, 2010
|
||||||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean Plans
|
U.S.
Plans
|
Non-U.S.
Plans
|
Transocean Plans
|
||||||||||||||||||||||||||||
Service cost
|
$
|
49
|
$
|
31
|
$
|
80
|
$
|
43
|
$
|
21
|
$
|
64
|
$
|
42
|
$
|
20
|
$
|
62
|
||||||||||||||||||
Interest cost
|
59
|
24
|
83
|
58
|
22
|
80
|
54
|
20
|
74
|
|||||||||||||||||||||||||||
Expected return on plan assets
|
(62
|
)
|
(22
|
)
|
(84
|
)
|
(63
|
)
|
(23
|
)
|
(86
|
)
|
(58
|
)
|
(17
|
)
|
(75
|
)
|
||||||||||||||||||
Settlements and curtailments
|
3
|
19
|
22
|
2
|
1
|
3
|
5
|
3
|
8
|
|||||||||||||||||||||||||||
Special termination benefits
|
1
|
—
|
1
|
—
|
—
|
—
|
3
|
—
|
3
|
|||||||||||||||||||||||||||
Actuarial losses, net
|
41
|
4
|
45
|
23
|
4
|
27
|
13
|
4
|
17
|
|||||||||||||||||||||||||||
Prior service cost (credit), net
|
(2
|
)
|
1
|
(1
|
)
|
(1
|
)
|
—
|
(1
|
)
|
(1
|
)
|
—
|
(1
|
)
|
|||||||||||||||||||||
Transition obligation, net
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1
|
1
|
|||||||||||||||||||||||||||
Net periodic benefit costs
|
$
|
89
|
$
|
57
|
$
|
146
|
$
|
62
|
$
|
25
|
$
|
87
|
$
|
58
|
$
|
31
|
$
|
89
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||||||||||||||
Actuarial loss, net
|
$
|
477
|
$
|
80
|
$
|
8
|
$
|
565
|
$
|
447
|
$
|
113
|
$
|
4
|
$
|
564
|
||||||||||||||||
Prior service cost (credit), net
|
(8
|
)
|
—
|
(2
|
)
|
(10
|
)
|
(10
|
)
|
—
|
(2
|
)
|
(12
|
)
|
||||||||||||||||||
Transition obligation, net
|
—
|
—
|
—
|
—
|
—
|
(2
|
)
|
—
|
(2
|
)
|
||||||||||||||||||||||
Total
|
$
|
469
|
$
|
80
|
$
|
6
|
$
|
555
|
$
|
437
|
$
|
111
|
$
|
2
|
$
|
550
|
Year ending December 31, 2013
|
||||||||||||||||
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
|||||||||||||
Actuarial loss, net
|
$
|
48
|
$
|
4
|
$
|
1
|
$
|
53
|
||||||||
Prior service cost (credit), net
|
(1
|
)
|
—
|
(1
|
)
|
(2
|
)
|
|||||||||
Transition obligation, net
|
—
|
—
|
—
|
—
|
||||||||||||
Total amount expected to be recognized
|
$
|
47
|
$
|
4
|
$
|
—
|
$
|
51
|
U.S.
Plans
|
Non-U.S.
Plans
|
OPEB
Plans
|
Total
|
||||||||||||
Years ending December 31,
|
|||||||||||||||
2013
|
$
|
43
|
$
|
28
|
$
|
4
|
$
|
75
|
|||||||
2014
|
47
|
11
|
4
|
62
|
|||||||||||
2015
|
51
|
10
|
4
|
65
|
|||||||||||
2016
|
55
|
11
|
4
|
70
|
|||||||||||
2017
|
59
|
11
|
4
|
74
|
|||||||||||
2018
-
2022
|
349
|
82
|
22
|
453
|
Capital
lease
|
Operating
leases
|
|||||||
Years ending December 31,
|
||||||||
2013
|
$
|
66
|
$
|
42
|
||||
2014
|
72
|
38
|
||||||
2015
|
72
|
24
|
||||||
2016
|
72
|
21
|
||||||
2017
|
73
|
11
|
||||||
Thereafter
|
846
|
95
|
||||||
Total future minimum rental payment
|
$
|
1,201
|
$
|
231
|
||||
Less amount representing imputed interest
|
(544
|
)
|
||||||
Present value of future minimum rental payments under capital leases
|
657
|
|||||||
Less current portion included in debt due within one year
|
(20
|
)
|
||||||
Long
-
term capital lease obligation
|
$
|
637
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Property and equipment, cost
|
$
|
745
|
$
|
742
|
||||
Accumulated depreciation
|
(64
|
)
|
(44
|
)
|
||||
Property and equipment, net
|
$
|
681
|
$
|
698
|
Purchase
obligations
|
||||
Years ending December 31,
|
||||
2013
|
$
|
1,896
|
||
2014
|
447
|
|||
2015
|
749
|
|||
2016
|
674
|
|||
2017
|
—
|
|||
Thereafter
|
—
|
|||
Total
|
$
|
3,766
|
§
|
the actual responsibility attributed to us and the other PRPs at the site;
|
§
|
appropriate investigatory or remedial actions; and
|
§
|
allocation of the costs of such activities among the PRPs and other site users.
|
§
|
the volume and nature of material, if any, contributed to the site for which we are responsible;
|
§
|
the number of other PRPs and their financial viability; and
|
§
|
the remediation methods and technology to be used.
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Redeemable noncontrolling interest
|
||||||||||||
Balance, beginning of period
|
$
|
116
|
$
|
41
|
$
|
—
|
||||||
Reclassification from noncontrolling interest
|
—
|
—
|
26
|
|||||||||
Net income attributable to noncontrolling interest
|
13
|
78
|
29
|
|||||||||
Other comprehensive loss attributable to noncontrolling interest
|
—
|
(3
|
)
|
(14)
|
||||||||
Fair value adjustment to redeemable noncontrolling interest
|
106
|
—
|
—
|
|||||||||
Reclassification to accumulated other comprehensive loss
|
17
|
—
|
—
|
|||||||||
Reclassification to other current liabilities
|
(252
|
)
|
—
|
—
|
||||||||
Balance, end of period
|
$
|
—
|
$
|
116
|
$
|
41
|
Year ended December 31, 2012
|
Year ended December 31, 2011
|
|||||||||||||||||||||||||||||||
Unrecognized components of net periodic benefit costs
|
Unrecognized gains (losses) on derivative instruments
|
Unrecognized gains (losses) on marketable securities
|
Total
|
Unrecognized components of net periodic benefit costs
|
Unrecognized gains (losses) on derivative instruments
|
Unrecognized gains (losses) on marketable securities
|
Total
|
|||||||||||||||||||||||||
Balance, beginning of period
|
$
|
(501
|
)
|
$
|
7
|
$
|
(2
|
)
|
$
|
(496
|
)
|
$
|
(335
|
)
|
$
|
5
|
$
|
(2
|
)
|
$
|
(332
|
)
|
||||||||||
Reclassification from redeemable noncontrolling interest
|
—
|
(17
|
)
|
—
|
(17
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
Other comprehensive income (loss)
attributable to controlling interest
|
(10
|
)
|
—
|
2
|
(8
|
)
|
(166
|
)
|
2
|
—
|
(164
|
)
|
||||||||||||||||||||
Balance, end of period
|
$
|
(511
|
)
|
$
|
(10
|
)
|
$
|
—
|
$
|
(521
|
)
|
$
|
(501
|
)
|
$
|
7
|
$
|
(2
|
)
|
$
|
(496
|
)
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Dividend yield
|
—
|
4%
|
4%
|
|||||||||
Expected price volatility
|
43%
|
40%
|
39%
|
|||||||||
Risk
-
free interest rate
|
0.87%
|
1.97%
|
2.30%
|
|||||||||
Expected life of options
|
5.0 years
|
4.9 years
|
4.7 years
|
|||||||||
Weighted
-
average fair value of options granted
|
$
|
18.87
|
$
|
19.75
|
$
|
30.03
|
Number
of
units
|
Weighted-average
grant-date fair value
per share
|
||||||
Unvested at January 1, 2012
|
1,939,840
|
$
|
74.78
|
||||
Granted
|
2,183,853
|
50.07
|
|||||
Vested
|
(1,064,359
|
)
|
71.57
|
||||
Forfeited
|
(189,283
|
)
|
60.73
|
||||
Unvested at December 31, 2012
|
2,870,051
|
$
|
58.09
|
Number
of shares
under option
|
Weighted-average
exercise price
per share
|
Weighted-average
remaining
contractual term
(years)
|
Aggregate intrinsic value
(in millions)
|
|||||||||||
Outstanding at January 1, 2012
|
1,579,284
|
$
|
70.16
|
5.43
|
$
|
—
|
||||||||
Granted
|
395,673
|
50.79
|
||||||||||||
Exercised
|
(264,707
|
)
|
36.50
|
|||||||||||
Forfeited
|
(55,533
|
)
|
59.65
|
|||||||||||
Expired
|
(38,662
|
)
|
53.51
|
|||||||||||
Outstanding at December 31, 2012
|
1,616,055
|
$
|
71.69
|
6.30
|
$
|
—
|
||||||||
Vested and exercisable at December 31, 2012
|
1,088,127
|
$
|
77.24
|
5.15
|
$
|
—
|
Number
of
awards
|
Weighted-average
exercise price
per share
|
Weighted-average
remaining
contractual term
(years)
|
Aggregate
intrinsic value
(in millions)
|
|||||||||||
Outstanding at January 1, 2012
|
187,739
|
$
|
93.39
|
4.76
|
$
|
—
|
||||||||
Outstanding at December 31, 2012
|
187,739
|
$
|
93.39
|
3.76
|
$
|
—
|
||||||||
Vested and exercisable at December 31, 2012
|
187,739
|
$
|
93.39
|
3.76
|
$
|
—
|
Number
of
units
|
Weighted-average
grant-date fair value
per share
|
||||||
Unvested at January 1, 2012
|
415,947
|
$
|
75.98
|
||||
Granted
|
163,319
|
58.52
|
|||||
Vested
|
(318,926
|
)
|
75.18
|
||||
Forfeited
|
(28,889
|
)
|
70.04
|
||||
Unvested at December 31, 2012
|
231,451
|
$
|
65.50
|
Number
of shares
under option
|
Weighted-average
exercise price
per share
|
Weighted-average
remaining
contractual term
(years)
|
Aggregate
intrinsic value
(in millions)
|
|||||||||||
Outstanding at January 1, 2012
|
179,262
|
$
|
75.30
|
4.23
|
$
|
—
|
||||||||
Outstanding at December 31, 2012
|
179,262
|
$
|
75.30
|
3.22
|
$
|
—
|
||||||||
Vested and exercisable at December 31, 2012
|
179,262
|
$
|
75.30
|
3.22
|
$
|
—
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Other current liabilities
|
||||||||
Accrued payroll and employee benefits
|
$
|
421
|
$
|
328
|
||||
Distribution payable
|
—
|
278
|
||||||
Deferred revenue
|
214
|
171
|
||||||
Deferred revenue of consolidated variable interest entities
|
21
|
16
|
||||||
Accrued taxes, other than income
|
150
|
142
|
||||||
Accrued interest
|
122
|
132
|
||||||
Contingent liabilities
|
1,958
|
1,243
|
||||||
Other
|
47
|
65
|
||||||
Total other current liabilities
|
$
|
2,933
|
$
|
2,375
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Other long
-
term liabilities
|
||||||||
Long
-
term income taxes payable
|
$
|
584
|
$
|
751
|
||||
Accrued pension liabilities
|
558
|
579
|
||||||
Deferred revenue
|
174
|
236
|
||||||
Deferred revenue of consolidated variable interest entities
|
72
|
85
|
||||||
Drilling contract intangibles
|
60
|
103
|
||||||
Accrued retiree life insurance and medical benefits
|
54
|
49
|
||||||
Other
|
102
|
122
|
||||||
Total other long
-
term liabilities
|
$
|
1,604
|
$
|
1,925
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Changes in operating assets and liabilities
|
||||||||||||
Decrease (increase) in accounts receivable
|
$
|
(139
|
)
|
$
|
(174
|
)
|
$
|
386
|
||||
Increase in other current assets
|
(73
|
)
|
(73
|
)
|
(75
|
)
|
||||||
Decrease (increase) in other assets
|
12
|
26
|
(40
|
)
|
||||||||
Increase in accounts payable and other current liabilities
|
931
|
978
|
197
|
|||||||||
Decrease in other long
-
term liabilities
|
(63
|
)
|
(34
|
)
|
(52
|
)
|
||||||
Change in income taxes receivable / payable, net
|
(156
|
)
|
80
|
(37
|
)
|
|||||||
$
|
512
|
$
|
803
|
$
|
379
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Certain cash operating activities
|
||||||||||||
Cash payments for interest
|
$
|
719
|
$
|
501
|
$
|
455
|
||||||
Cash payments for income taxes
|
347
|
338
|
493
|
|||||||||
Non
-
cash investing and financing activities
|
||||||||||||
Capital expenditures, accrued at end of period (a)
|
$
|
123
|
$
|
62
|
$
|
66
|
||||||
Issuance of shares in exchange for redeemable noncontrolling interest (b)
|
367
|
—
|
—
|
|||||||||
Non
-
cash proceeds received for the sale of assets (c)
|
194
|
—
|
134
|
(a)
|
These amounts represent additions to property and equipment for which we had accrued a corresponding liability in accounts payable.
|
(b)
|
On May 31, 2012, we issued 8.7 million shares to Quantum in a non-cash exchange for its interest in TPDI. See Note 18—Redeemable Noncontrolling Interest.
|
(c)
|
During the year ended December 31, 2012, we completed the sale of 38 drilling units to Shelf Drilling. In connection with the sale transactions, we received net cash proceeds of $568 million and non-cash proceeds in the form of preference shares with an aggregate stated value of $196 million. We recognized the preference shares at their estimated fair value measured at the time of the sale, in the aggregate amount of $194 million, including the fair value associated with the embedded derivatives. See Note 9—Discontinued Operations.
|
|
During the year ended December 31, 2010, we completed the sale of two Midwater Floaters,
GSF Arctic II
and
GSF Arctic IV.
In connection with the sale, we received net cash proceeds of $38 million and non-cash proceeds in the form of two notes receivable in the aggregate face value amount of $165 million. We recognized the notes receivable at their estimated fair value, in the aggregate amount of $134 million, measured at the time of the sale. See Note 12—Drilling Fleet.
|
December 31, 2012
|
December 31, 2011
|
||||||||||||||
Carrying
amount
|
Fair
value
|
Carrying
amount
|
Fair
value
|
||||||||||||
Cash and cash equivalents
|
$
|
5,134
|
$
|
5,134
|
$
|
4,017
|
$
|
4,017
|
|||||||
Notes and other loans receivable
|
142
|
142
|
154
|
154
|
|||||||||||
Preference shares
|
196
|
196
|
—
|
—
|
|||||||||||
Restricted cash investments
|
857
|
903
|
934
|
975
|
|||||||||||
Long-term debt, including current maturities
|
12,268
|
13,899
|
12,698
|
13,074
|
|||||||||||
Long-term debt of consolidated variable interest entities, including current maturities
|
191
|
191
|
838
|
838
|
|||||||||||
Derivative instruments, assets
|
8
|
8
|
36
|
36
|
|||||||||||
Derivative instruments, liabilities
|
15
|
15
|
38
|
38
|
Years ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Operating revenues
|
||||||||||||
U.S.
|
$
|
2,472
|
$
|
1,971
|
$
|
1,937
|
||||||
Norway
|
1,174
|
897
|
765
|
|||||||||
Brazil
|
1,114
|
1,019
|
1,288
|
|||||||||
U.K.
|
1,028
|
1,099
|
1,097
|
|||||||||
Other countries (a)
|
3,408
|
3,041
|
2,862
|
|||||||||
Total operating revenues
|
$
|
9,196
|
$
|
8,027
|
$
|
7,949
|
(a)
|
Other countries represents countries in which we operate that individually had operating revenues representing less than 10 percent of total operating revenues earned.
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
Long
-
lived assets
|
||||||||
U.S.
|
$
|
7,395
|
$
|
6,553
|
||||
Brazil
|
2,285
|
2,185
|
||||||
Norway
|
2,072
|
2,067
|
||||||
Other countries (a)
|
9,128
|
9,983
|
||||||
Total long
-
lived assets
|
$
|
20,880
|
$
|
20,788
|
(a)
|
Other countries represents countries in which we operate that individually had long-lived assets representing less than 10 percent of total long-lived assets.
|
Year ended December 31, 2012
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
(in millions)
|
||||||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
5
|
$
|
9,213
|
$
|
(22
|
)
|
$
|
9,196
|
|||||||||
Cost and expenses
|
54
|
16
|
7,463
|
(22
|
)
|
7,511
|
||||||||||||||
Loss on impairment
|
—
|
—
|
(140
|
)
|
—
|
(140
|
)
|
|||||||||||||
Gain on disposal of assets, net
|
—
|
—
|
36
|
—
|
36
|
|||||||||||||||
Operating income (loss)
|
(54
|
)
|
(11
|
)
|
1,646
|
—
|
1,581
|
|||||||||||||
Other income (expense), net
|
||||||||||||||||||||
Interest expense, net
|
(12
|
)
|
(576
|
)
|
(79
|
)
|
—
|
(667
|
)
|
|||||||||||
Equity in earnings
|
(153
|
)
|
402
|
—
|
(249
|
)
|
—
|
|||||||||||||
Other, net
|
—
|
(4
|
)
|
(44
|
)
|
—
|
(48
|
)
|
||||||||||||
(165
|
)
|
(178
|
)
|
(123
|
)
|
(249
|
)
|
(715
|
)
|
|||||||||||
Income (loss) from continuing operations before income tax expense
|
(219
|
)
|
(189
|
)
|
1,523
|
(249
|
)
|
866
|
||||||||||||
Income tax expense
|
—
|
—
|
50
|
—
|
50
|
|||||||||||||||
Income (loss) from continuing operations
|
(219
|
)
|
(189
|
)
|
1,473
|
(249
|
)
|
816
|
||||||||||||
Loss from discontinued operations, net of tax
|
—
|
—
|
(1,027
|
)
|
—
|
(1,027
|
)
|
|||||||||||||
Net income (loss)
|
(219
|
)
|
(189
|
)
|
446
|
(249
|
)
|
(211
|
)
|
|||||||||||
Net income (loss) attributable to noncontrolling interest
|
—
|
—
|
8
|
—
|
8
|
|||||||||||||||
Net income (loss) attributable to controlling interest
|
(219
|
)
|
(189
|
)
|
438
|
(249
|
)
|
(219
|
)
|
|||||||||||
Other comprehensive income (loss) before income taxes
|
(5
|
)
|
(31
|
)
|
35
|
—
|
(1
|
)
|
||||||||||||
Income taxes related to other comprehensive income (loss)
|
—
|
—
|
(7
|
)
|
—
|
(7
|
)
|
|||||||||||||
Other comprehensive income (loss), net of income taxes
|
(5
|
)
|
(31
|
)
|
28
|
—
|
(8
|
)
|
||||||||||||
Total comprehensive income (loss)
|
(224
|
)
|
(220
|
)
|
474
|
(249
|
)
|
(219
|
)
|
|||||||||||
Total comprehensive income (loss) attributable to noncontrolling interest
|
—
|
—
|
8
|
—
|
8
|
|||||||||||||||
Total comprehensive income (loss) attributable to controlling interest
|
$
|
(224
|
)
|
$
|
(220
|
)
|
$
|
466
|
$
|
(249
|
)
|
$
|
(227
|
)
|
Year ended December 31, 2011
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
—
|
$
|
8,045
|
$
|
(18
|
)
|
$
|
8,027
|
|||||||||
Cost and expenses
|
44
|
4
|
7,546
|
(18
|
)
|
7,576
|
||||||||||||||
Loss on impairment
|
—
|
—
|
(5,201
|
)
|
—
|
(5,201
|
)
|
|||||||||||||
Loss on disposal of assets, net
|
—
|
—
|
(12
|
)
|
—
|
(12
|
)
|
|||||||||||||
Operating loss
|
(44
|
)
|
(4
|
)
|
(4,714
|
)
|
—
|
(4,762
|
)
|
|||||||||||
Other income (expense), net
|
||||||||||||||||||||
Interest expense, net
|
(11)
|
(510
|
)
|
(56
|
)
|
—
|
(577
|
)
|
||||||||||||
Equity in earnings
|
(5,699
|
)
|
(5,174
|
)
|
—
|
10,873
|
—
|
|||||||||||||
Other, net
|
—
|
9
|
(108
|
)
|
—
|
(99
|
)
|
|||||||||||||
(5,710
|
)
|
(5,675
|
)
|
(164
|
)
|
10,873
|
(676
|
)
|
||||||||||||
Loss from continuing operations before income tax expense
|
(5,754
|
)
|
(5,679
|
)
|
(4,878
|
)
|
10,873
|
(5,438
|
)
|
|||||||||||
Income tax expense
|
—
|
—
|
324
|
—
|
324
|
|||||||||||||||
Loss from continuing operations
|
(5,754
|
)
|
(5,679
|
)
|
(5,202
|
)
|
10,873
|
(5,762
|
)
|
|||||||||||
Income from discontinued operations, net of tax
|
—
|
—
|
85
|
—
|
85
|
|||||||||||||||
Net loss
|
(5,754
|
)
|
(5,679
|
)
|
(5,117
|
)
|
10,873
|
(5,677
|
)
|
|||||||||||
Net income attributable to noncontrolling interest
|
—
|
—
|
77
|
—
|
77
|
|||||||||||||||
Net loss attributable to controlling interest
|
(5,754
|
)
|
(5,679
|
)
|
(5,194
|
)
|
10,873
|
(5,754
|
)
|
|||||||||||
Other comprehensive income (loss) before income taxes
|
(3
|
)
|
(114
|
)
|
(64
|
)
|
—
|
(181
|
)
|
|||||||||||
Income taxes related to other comprehensive income (loss)
|
—
|
—
|
13
|
—
|
13
|
|||||||||||||||
Other comprehensive income (loss), net of income taxes
|
(3
|
)
|
(114
|
)
|
(51
|
)
|
—
|
(168
|
)
|
|||||||||||
Total comprehensive income (loss)
|
(5,757
|
)
|
(5,793
|
)
|
(5,168
|
)
|
10,873
|
(5,845
|
)
|
|||||||||||
Total comprehensive income attributable to noncontrolling interest
|
—
|
—
|
73
|
—
|
73
|
|||||||||||||||
Total comprehensive income (loss) attributable to controlling interest
|
$
|
(5,757
|
)
|
$
|
(5,793
|
)
|
$
|
(5,241
|
)
|
$
|
10,873
|
$
|
(5,918
|
)
|
Year ended December 31, 2010
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
—
|
$
|
7,964
|
$
|
(15
|
)
|
$
|
7,949
|
|||||||||
Cost and expenses
|
45
|
3
|
5,441
|
(15
|
)
|
5,474
|
||||||||||||||
Gain on disposal of assets, net
|
—
|
—
|
255
|
—
|
255
|
|||||||||||||||
Operating income (loss)
|
(45
|
)
|
(3
|
)
|
2,778
|
—
|
2,730
|
|||||||||||||
Other income (expense), net
|
||||||||||||||||||||
Interest expense, net
|
1
|
(494
|
)
|
(51
|
)
|
—
|
(544
|
)
|
||||||||||||
Equity in earnings
|
970
|
1,484
|
—
|
(2,454
|
)
|
—
|
||||||||||||||
Other, net
|
—
|
(7
|
)
|
(24
|
)
|
—
|
(31
|
)
|
||||||||||||
971
|
983
|
(75
|
)
|
(2,454
|
)
|
(575
|
)
|
|||||||||||||
Income from continuing operations before income tax expense
|
926
|
980
|
2,703
|
(2,454
|
)
|
2,155
|
||||||||||||||
Income tax expense
|
—
|
—
|
292
|
—
|
292
|
|||||||||||||||
Income from continuing operations
|
926
|
980
|
2,411
|
(2,454
|
)
|
1,863
|
||||||||||||||
Loss from discontinued operations, net of tax
|
—
|
—
|
(894
|
)
|
—
|
(894
|
)
|
|||||||||||||
Net income
|
926
|
980
|
1,517
|
(2,454
|
)
|
969
|
||||||||||||||
Net income attributable to noncontrolling interest
|
—
|
—
|
43
|
—
|
43
|
|||||||||||||||
Net income attributable to controlling interest
|
926
|
980
|
1,474
|
(2,454
|
)
|
926
|
||||||||||||||
Other comprehensive income (loss) before income taxes
|
7
|
(44
|
)
|
28
|
—
|
(9
|
)
|
|||||||||||||
Income taxes related to other comprehensive income (loss)
|
—
|
—
|
(9
|
)
|
—
|
(9
|
)
|
|||||||||||||
Other comprehensive income (loss), net of income taxes
|
7
|
(44
|
)
|
19
|
—
|
(18
|
)
|
|||||||||||||
Total comprehensive income
|
933
|
936
|
1,536
|
(2,454
|
)
|
951
|
||||||||||||||
Total comprehensive income attributable to noncontrolling interest
|
—
|
—
|
22
|
—
|
22
|
|||||||||||||||
Total comprehensive income attributable to controlling interest
|
$
|
933
|
$
|
936
|
$
|
1,514
|
$
|
(2,454
|
)
|
$
|
929
|
December 31, 2012
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
24
|
$
|
3,155
|
$
|
1,955
|
$
|
—
|
$
|
5,134
|
||||||||||
Other current assets
|
7
|
1,901
|
3,852
|
(2,247
|
)
|
3,513
|
||||||||||||||
Total current assets
|
31
|
5,056
|
5,807
|
(2,247
|
)
|
8,647
|
||||||||||||||
Property and equipment, net
|
—
|
—
|
20,880
|
—
|
20,880
|
|||||||||||||||
Goodwill
|
—
|
—
|
2,987
|
—
|
2,987
|
|||||||||||||||
Investment in affiliates
|
16,354
|
27,933
|
196
|
(44,287
|
)
|
196
|
||||||||||||||
Other assets
|
—
|
1,804
|
18,048
|
(18,307
|
)
|
1,545
|
||||||||||||||
Total assets
|
16,385
|
34,793
|
47,918
|
(64,841
|
)
|
34,255
|
||||||||||||||
Liabilities and equity
|
||||||||||||||||||||
Debt due within one year
|
—
|
564
|
803
|
—
|
1,367
|
|||||||||||||||
Other current liabilities
|
13
|
632
|
5,698
|
(2,247
|
)
|
4,096
|
||||||||||||||
Total current liabilities
|
13
|
1,196
|
6,501
|
(2,247
|
)
|
5,463
|
||||||||||||||
Long-term debt
|
594
|
17,772
|
11,033
|
(18,307
|
)
|
11,092
|
||||||||||||||
Other long-term liabilities
|
33
|
454
|
1,483
|
—
|
1,970
|
|||||||||||||||
Total long-term liabilities
|
627
|
18,226
|
12,516
|
(18,307
|
)
|
13,062
|
||||||||||||||
Commitments and contingencies
|
||||||||||||||||||||
Redeemable noncontrolling interest
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total equity
|
15,745
|
15,371
|
28,901
|
(44,287
|
)
|
15,730
|
||||||||||||||
Total liabilities and equity
|
$
|
16,385
|
$
|
34,793
|
$
|
47,918
|
$
|
(64,841
|
)
|
$
|
34,255
|
December 31, 2011
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
3
|
$
|
2,793
|
$
|
1,221
|
$
|
—
|
$
|
4,017
|
||||||||||
Other current assets
|
8
|
784
|
4,476
|
(1,749
|
)
|
3,519
|
||||||||||||||
Total current assets
|
11
|
3,577
|
5,697
|
(1,749
|
)
|
7,536
|
||||||||||||||
Property and equipment, net
|
1
|
—
|
20,787
|
—
|
20,788
|
|||||||||||||||
Goodwill
|
—
|
—
|
3,217
|
—
|
3,217
|
|||||||||||||||
Investment in affiliates
|
16,439
|
27,518
|
—
|
(43,957
|
)
|
—
|
||||||||||||||
Other assets
|
—
|
1,368
|
20,799
|
(18,676
|
)
|
3,491
|
||||||||||||||
Total assets
|
16,451
|
32,463
|
50,500
|
(64,382
|
)
|
35,032
|
||||||||||||||
Liabilities and equity
|
||||||||||||||||||||
Debt due within one year
|
—
|
1,693
|
494
|
—
|
2,187
|
|||||||||||||||
Other current liabilities
|
294
|
367
|
4,429
|
(1,749
|
)
|
3,341
|
||||||||||||||
Total current liabilities
|
294
|
2,060
|
4,923
|
(1,749
|
)
|
5,528
|
||||||||||||||
Long-term debt
|
495
|
14,308
|
15,222
|
(18,676
|
)
|
11,349
|
||||||||||||||
Other long-term liabilities
|
25
|
439
|
1,948
|
—
|
2,412
|
|||||||||||||||
Total long-term liabilities
|
520
|
14,747
|
17,170
|
(18,676
|
)
|
13,761
|
||||||||||||||
Commitments and contingencies
|
||||||||||||||||||||
Redeemable noncontrolling interest
|
—
|
—
|
116
|
—
|
116
|
|||||||||||||||
Total equity
|
15,637
|
15,656
|
28,291
|
(43,957
|
)
|
15,627
|
||||||||||||||
Total liabilities and equity
|
$
|
16,451
|
$
|
32,463
|
$
|
50,500
|
$
|
(64,382
|
)
|
$
|
35,032
|
Year ended December 31, 2012
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Cash flows from operating activities
|
$
|
(86
|
)
|
$
|
(953
|
)
|
$
|
3,747
|
$
|
—
|
$
|
2,708
|
||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Capital expenditures
|
—
|
—
|
(1,303
|
)
|
—
|
(1,303
|
)
|
|||||||||||||
Capital expenditures for discontinued operations
|
—
|
—
|
(106
|
)
|
—
|
(106
|
)
|
|||||||||||||
Proceeds from disposal of assets, net
|
—
|
—
|
191
|
—
|
191
|
|||||||||||||||
Proceeds from disposal of discontinued operations, net
|
—
|
568
|
221
|
—
|
789
|
|||||||||||||||
Investing activities with affiliates, net
|
(165
|
)
|
(2,344
|
)
|
(3,726
|
)
|
6,235
|
—
|
||||||||||||
Other, net
|
—
|
29
|
11
|
—
|
40
|
|||||||||||||||
Net cash provided by (used in) investing activities
|
(165
|
)
|
(1,747
|
)
|
(4,712
|
)
|
6,235
|
(389
|
)
|
|||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Changes in short-term borrowings, net
|
—
|
—
|
(260
|
)
|
—
|
(260
|
)
|
|||||||||||||
Proceeds from debt
|
—
|
1,493
|
—
|
—
|
1,493
|
|||||||||||||||
Repayments of debt
|
—
|
(1,689
|
)
|
(593
|
)
|
—
|
(2,282
|
)
|
||||||||||||
Proceeds from restricted cash investments
|
—
|
—
|
311
|
—
|
311
|
|||||||||||||||
Deposits to restricted cash investments
|
—
|
—
|
(167
|
)
|
—
|
(167
|
)
|
|||||||||||||
Distribution of qualifying additional paid-in capital
|
(278
|
)
|
—
|
—
|
—
|
(278
|
)
|
|||||||||||||
Financing activities with affiliates, net
|
549
|
3,276
|
2,410
|
(6,235
|
)
|
—
|
||||||||||||||
Other, net
|
1
|
(18
|
)
|
(2
|
)
|
—
|
(19
|
)
|
||||||||||||
Net cash provided by (used in) financing activities
|
272
|
3,062
|
1,699
|
(6,235
|
)
|
(1,202
|
)
|
|||||||||||||
Net increase (decrease) in cash and cash equivalents
|
21
|
362
|
734
|
—
|
1,117
|
|||||||||||||||
Cash and cash equivalents at beginning of period
|
3
|
2,793
|
1,221
|
—
|
4,017
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
24
|
$
|
3,155
|
$
|
1,955
|
$
|
—
|
$
|
5,134
|
Year ended December 31, 2011
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Cash flows from operating activities
|
$
|
(52
|
)
|
$
|
(568
|
)
|
$
|
2,445
|
$
|
—
|
$
|
1,825
|
||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Capital expenditures
|
—
|
—
|
(974
|
)
|
—
|
(974
|
)
|
|||||||||||||
Capital expenditures for discontinued operations
|
—
|
—
|
(46
|
)
|
—
|
(46
|
)
|
|||||||||||||
Investment in business combination, net of cash acquired
|
—
|
—
|
(1,246
|
)
|
—
|
(1,246
|
)
|
|||||||||||||
Proceeds from disposal of assets, net
|
—
|
—
|
14
|
—
|
14
|
|||||||||||||||
Proceeds from disposal of discontinued operations, net
|
—
|
—
|
447
|
—
|
447
|
|||||||||||||||
Investing activities with affiliates, net
|
(875
|
)
|
(325
|
)
|
(1,764
|
)
|
2,964
|
—
|
||||||||||||
Other, net
|
—
|
(23
|
)
|
(68
|
)
|
—
|
(91
|
)
|
||||||||||||
Net cash provided by (used in) investing activities
|
(875
|
)
|
(348
|
)
|
(3,637
|
)
|
2,964
|
(1,896
|
)
|
|||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Changes in short-term borrowings, net
|
—
|
(88
|
)
|
—
|
—
|
(88
|
)
|
|||||||||||||
Proceeds from debt
|
435
|
2,504
|
—
|
—
|
2,939
|
|||||||||||||||
Repayments of debt
|
(429
|
)
|
(1,827
|
)
|
(153
|
)
|
—
|
(2,409
|
)
|
|||||||||||
Proceeds from restricted cash investments
|
429
|
—
|
50
|
—
|
479
|
|||||||||||||||
Deposits to restricted cash investments
|
(435
|
)
|
—
|
(88
|
)
|
—
|
(523
|
)
|
||||||||||||
Proceeds from share issuance, net
|
1,211
|
—
|
—
|
—
|
1,211
|
|||||||||||||||
Distribution of qualifying additional paid-in capital
|
(763
|
)
|
—
|
—
|
—
|
(763
|
)
|
|||||||||||||
Financing activities with affiliates, net
|
495
|
1,114
|
1,355
|
(2,964
|
)
|
—
|
||||||||||||||
Other, net
|
(51
|
)
|
(35
|
)
|
(26
|
)
|
—
|
(112
|
)
|
|||||||||||
Net cash provided by (used in) financing activities
|
892
|
1,668
|
1,138
|
(2,964
|
)
|
734
|
||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(35
|
)
|
752
|
(54
|
)
|
—
|
663
|
|||||||||||||
Cash and cash equivalents at beginning of period
|
38
|
2,041
|
1,275
|
—
|
3,354
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
3
|
$
|
2,793
|
$
|
1,221
|
$
|
—
|
$
|
4,017
|
Year ended December 31, 2010
|
||||||||||||||||||||
Parent
Guarantor
|
Subsidiary
Issuer
|
Other
Subsidiaries
|
Consolidating
adjustments
|
Consolidated
|
||||||||||||||||
Cash flows from operating activities
|
$
|
(33
|
)
|
$
|
(358
|
)
|
$
|
4,297
|
$
|
—
|
$
|
3,906
|
||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Capital expenditures
|
(4
|
)
|
—
|
(1,345
|
)
|
—
|
(1,349
|
)
|
||||||||||||
Capital expenditures for discontinued operations
|
—
|
—
|
(42
|
)
|
—
|
(42
|
)
|
|||||||||||||
Proceeds from disposal of assets, net
|
—
|
—
|
60
|
—
|
60
|
|||||||||||||||
Proceeds from insurance recoveries for loss of drilling unit
|
—
|
—
|
560
|
—
|
560
|
|||||||||||||||
Investing activities with affiliates, net
|
310
|
1,357
|
(1,694
|
)
|
27
|
—
|
||||||||||||||
Other, net
|
—
|
(6
|
)
|
56
|
—
|
50
|
||||||||||||||
Net cash provided by (used in) investing activities
|
306
|
1,351
|
(2,405
|
)
|
27
|
(721
|
)
|
|||||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Changes in short-term borrowings, net
|
—
|
(193
|
)
|
—
|
—
|
(193
|
)
|
|||||||||||||
Proceeds from debt
|
—
|
1,999
|
55
|
—
|
2,054
|
|||||||||||||||
Repayments of debt
|
—
|
(2,245
|
)
|
(320
|
)
|
—
|
(2,565
|
)
|
||||||||||||
Purchases of shares held in treasury
|
(240
|
)
|
—
|
—
|
—
|
(240
|
)
|
|||||||||||||
Financing activities with affiliates, net
|
—
|
1,384
|
(1,357
|
)
|
(27
|
)
|
—
|
|||||||||||||
Other, net
|
—
|
(14
|
)
|
(3
|
)
|
—
|
(17
|
)
|
||||||||||||
Net cash provided by (used in) financing activities
|
(240
|
)
|
931
|
(1,625
|
)
|
(27
|
)
|
(961
|
)
|
|||||||||||
Net increase in cash and cash equivalents
|
33
|
1,924
|
267
|
—
|
2,224
|
|||||||||||||||
Cash and cash equivalents at beginning of period
|
5
|
117
|
1,008
|
—
|
1,130
|
|||||||||||||||
Cash and cash equivalents at end of period
|
$
|
38
|
$
|
2,041
|
$
|
1,275
|
$
|
—
|
$
|
3,354
|
Three months ended
|
||||||||||||||||
March 31,
|
June 30,
|
September 30,
|
December 31,
|
|||||||||||||
(In millions, except per share data)
|
||||||||||||||||
2012
|
||||||||||||||||
Operating revenues
|
$
|
2,110
|
$
|
2,329
|
$
|
2,431
|
$
|
2,326
|
||||||||
Operating income (loss) (a)
|
371
|
(142
|
)
|
811
|
541
|
|||||||||||
Income (loss) from continuing operations
|
154
|
(303
|
)
|
533
|
432
|
|||||||||||
Net income (loss) attributable to controlling interest (a) (b)
|
10
|
(304
|
)
|
(381
|
)
|
456
|
||||||||||
Per share earnings (loss) from continuing operations
|
||||||||||||||||
Basic
|
$
|
0.42
|
$
|
(0.86
|
)
|
$
|
1.49
|
$
|
1.19
|
|||||||
Diluted
|
$
|
0.42
|
$
|
(0.86
|
)
|
$
|
1.49
|
$
|
1.19
|
|||||||
Weighted
-
average shares outstanding
|
||||||||||||||||
Basic
|
350
|
353
|
359
|
359
|
||||||||||||
Diluted
|
350
|
353
|
359
|
360
|
||||||||||||
2011
|
||||||||||||||||
Operating revenues
|
$
|
1,869
|
$
|
2,051
|
$
|
1,974
|
$
|
2,133
|
||||||||
Operating income (loss) (c)
|
366
|
380
|
303
|
(5,811
|
)
|
|||||||||||
Income (loss) from continuing operations
|
180
|
171
|
(19
|
)
|
(6,094
|
)
|
||||||||||
Net income (loss) attributable to controlling interest (c) (d)
|
319
|
124
|
(32
|
)
|
(6,165
|
)
|
||||||||||
Per share earnings (loss) from continuing operations
|
||||||||||||||||
Basic
|
$
|
0.51
|
$
|
0.51
|
$
|
(0.09
|
)
|
$
|
(18.67
|
)
|
||||||
Diluted
|
$
|
0.51
|
$
|
0.50
|
$
|
(0.09
|
)
|
$
|
(18.67
|
)
|
||||||
Weighted
-
average shares outstanding
|
||||||||||||||||
Basic
|
319
|
320
|
320
|
329
|
||||||||||||
Diluted
|
320
|
320
|
320
|
329
|
(a)
|
First quarter included an adjustment of $118 million to our goodwill impairment associated with our contract drilling reporting unit and an impairment of $22 million of the customer relationships intangible asset associated with the U.K. operations of our drilling management services reporting unit. Second quarter included an estimated loss of $750 million in connection with loss contingencies associated with the Macondo well incident. Third quarter included an aggregate gain of $51 million associated with the sale of
Discoverer 534
and
Jim Cunningham
. See Note 7—Intangible Asset Impairments, Note 12—Drilling Fleet and Note 17—Commitments and Contingencies.
|
(b)
|
First, second, third and fourth quarters included gains (losses) on disposal of discontinued operations in the amount of $(1) million, $72 million. $(1) million and $12 million, respectively. See Note 9—Discontinued Operations.
|
(c)
|
Third quarter included a loss of $78 million on a forward exchange contract. Fourth quarter included an estimated loss of $5.2 billion on impairment of goodwill and an estimated loss of $1.0 billion in connection with loss contingencies associated with the Macondo well incident. See Note 7—Intangible Asset Impairments and Note 17—Commitments and Contingencies.
|
(d)
|
First, second, third and fourth quarters included gains (losses) on disposal of discontinued operations in the amount of $178 million, $(2) million, $(1) million and $8 million, respectively. See Note 9—Discontinued Operations.
|
Item 9A
.
|
Controls and Procedures
|
Item 9B
.
|
Other Information
|
Item 10
.
|
Directors, Executive Officers and Corporate Governance
|
Item 11
.
|
Executive Compensation
|
Item 12
.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13
.
|
Certain Relationships, Related Transactions, and Director Independence
|
Item 14
.
|
Principal Accounting Fees and Services
|
Item 15
.
|
Exhibits and Financial Statement Schedules
|
Included in Part II of this report:
|
Page
|
||
Additions
|
||||||||||||||||||
Balance at beginning of period
|
Charge to cost and expenses
|
Charge to
other
accounts
-describe
|
Deductions
-describe
|
Balance at end of
period
|
||||||||||||||
Year ended December 31, 2010
|
||||||||||||||||||
Reserves and allowances deducted from asset accounts:
|
||||||||||||||||||
Allowance for doubtful accounts receivable
|
$
|
65
|
$
|
5
|
$
|
—
|
$
|
32
|
(a)
|
$
|
38
|
|||||||
Allowance for obsolete materials and supplies
|
66
|
6
|
—
|
2
|
(b)
|
70
|
||||||||||||
Valuation allowance on deferred tax assets
|
160
|
8
|
—
|
4
|
(c)
|
164
|
||||||||||||
Year ended December 31, 2011
|
||||||||||||||||||
Reserves and allowances deducted from asset accounts:
|
||||||||||||||||||
Allowance for doubtful accounts receivable
|
$
|
38
|
$
|
—
|
$
|
—
|
$
|
10
|
(a)
|
$
|
28
|
|||||||
Allowance for obsolete materials and supplies
|
70
|
5
|
—
|
2
|
(d)
|
73
|
||||||||||||
Valuation allowance on deferred tax assets
|
164
|
19
|
—
|
—
|
183
|
|||||||||||||
Year ended December 31, 2012
|
||||||||||||||||||
Reserves and allowances deducted from asset accounts:
|
||||||||||||||||||
Allowance for doubtful accounts receivable
|
$
|
28
|
$
|
—
|
$
|
—
|
$
|
8
|
(a)
|
$
|
20
|
|||||||
Allowance for obsolete materials and supplies
|
73
|
8
|
—
|
15
|
(d)
|
66
|
||||||||||||
Valuation allowance on deferred tax assets
|
183
|
28
|
—
|
1
|
(c)
|
210
|
||||||||||||
(a)
|
Uncollectible accounts receivable written off, net of recoveries.
|
(b)
|
Amount represents $1 million related to sale of rigs and inventory and $1 million related to the loss of
Deepwater Horizon
.
|
(c)
|
Primarily due to reassessments of valuation allowances against future operations.
|
(d)
|
Amount related to sale of rigs and related equipment.
|
Number
|
Description
|
|
3.1
|
Articles of Association of Transocean Ltd. (incorporated by reference to Exhibit 3.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on June 5, 2012)
|
|
†
|
3.2
|
Organizational Regulations of Transocean Ltd.
|
|
4.1
|
Indenture dated as of April 15, 1997 between Transocean Offshore Inc. and Texas Commerce Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to Transocean Offshore Inc.’s Current Report on Form 8-K (Commission File No. 001-07746) filed on April 30, 1997)
|
|
4.2
|
First
Supplemental Indenture dated as of April 15, 1997 between Transocean Offshore Inc. and Texas Commerce Bank National Association, as trustee, supplementing the Indenture dated as of April 15, 1997 (incorporated by reference to Exhibit 4.2 to Transocean Offshore Inc.’s Current Report on Form 8-K (Commission File No. 001-07746) filed on April 30, 1997)
|
|
4.3
|
Second
Supplemental Indenture dated as of May 14, 1999 between Transocean Offshore (Texas) Inc., Transocean Offshore Inc. and Chase Bank of Texas, National Association, as trustee (incorporated by reference to Exhibit 4.5 to Transocean Offshore Inc.’s Post
-
Effective Amendment No. 1 to Registration Statement on Form S-3 (Registration No. 333-59001
-
99))
|
|
4.4
|
Third
Supplemental Indenture dated as of May 24, 2000 between Transocean Sedco Forex Inc. and Chase Bank of Texas, National Association, as trustee (incorporated by reference to Exhibit 4.1 to Transocean Sedco Forex Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on May 24, 2000)
|
|
4.5
|
Fourth
Supplemental Indenture dated as of May 11, 2001 between Transocean Sedco Forex Inc. and The Chase Manhattan Bank (incorporated by reference to Exhibit 4.3 to Transocean Sedco Forex Inc.’s Quarterly Report on Form 10-Q (Commission File No. 333-75899) for the quarter ended March 31, 2001)
|
|
4.6
|
Fifth
Supplemental Indenture, dated as of December 18, 2008, among Transocean
Ltd., Transocean Inc. and The Bank of New York Mellon Trust
Company, N.A., as trustee (incorporated by reference to Exhibit 4.4 to Transocean Ltd.’s Current Report on Form 8-K filed on December 19, 2008)
|
|
4.7
|
Form of 7.45% Notes due April 15, 2027 (incorporated by reference to Exhibit 4.3 to Transocean Offshore Inc.’s Current Report on Form 8-K (Commission File No. 001-07746) filed on April 30, 1997)
|
|
4.8
|
Form of 8.00% Debentures due April 15, 2027 (incorporated by reference to Exhibit 4.4 to Transocean Offshore Inc.’s Current Report on Form 8
-
K (Commission File No. 001-07746) filed on April 30, 1997)
|
|
4.9
|
Form of 7.5
0
% Note due April 15, 2031 (incorporated by reference to Exhibit 4.3 to Transocean Sedco Forex Inc.’s Current Report on Form 8
-
K (Commission File No. 333-75899) filed on April 9, 2001)
|
|
4.1
0
|
Officers’ Certificate establishing the terms of the 6.50% Notes due 2003, 6.75% Notes due 2005, 6.95% Notes due 2008, 7.375% Notes due 2018, 9.125% Notes due 2003 and 9.50% Notes due 2008 (incorporated by reference to Exhibit 4.13 to Transocean Sedco Forex Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the fiscal year ended December 31, 2001)
|
|
4.11
|
Officers’ Certificate establishing the terms of the 7.375% Notes due 2018 (incorporated by reference to Exhibit 4.14 to Transocean Sedco Forex Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the fiscal year ended December 31, 2001)
|
|
4.12
|
Indenture dated as of February
1, 2003, between GlobalSantaFe
Corporation and Wilmington Trust
Company, as trustee, relating to debt securities of GlobalSantaFe
Corporation (incorporated by reference to Exhibit 4.9 to GlobalSantaFe
Corporation’s Annual Report on Form 10-K (Commission File No. 001-14634) for the year ended December 31, 2002)
|
|
4.13
|
Supplemental Indenture dated November 27, 2007 among Transocean
Worldwide
Inc., GlobalSantaFe
Corporation and Wilmington Trust
Company, as trustee, to the Indenture dated as of February
1, 2003 between GlobalSantaFe
Corporation and Wilmington Trust
Company (incorporated by reference to Exhibit 4.4 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on December 3, 2007)
|
|
4.14
|
Form of 7% Note Due 2028 (incorporated by reference to Exhibit 4.2 of Global Marine
Inc.’s Current Report on Form 8-K (Commission File No. 1-5471) filed on May 22, 1998)
|
|
4.15
|
Terms of 7% Note Due 2028 (incorporated by reference to Exhibit 4.1 of Global Marine
Inc.’s Current Report on Form 8-K (Commission File No. 1-5471) filed on May 22, 1998)
|
|
4.16
|
Indenture dated as of September 1, 1997, between Global Marine
Inc. and Wilmington Trust
Company, as Trustee, relating to Debt Securities of Global Marine
Inc. (incorporated by reference to Exhibit 4.1 of Global Marine
Inc.’s Registration Statement on Form S-4 (No. 333-39033) filed with the Commission on October 30, 1997); First
Supplemental Indenture dated as of June 23, 2000 (incorporated by reference to Exhibit 4.2 of Global Marine
Inc.’s Quarterly Report on Form 10-Q (Commission File No. 1-5471) for the quarter ended June
30, 2000); Second
Supplemental Indenture dated as of November 20, 2001 (incorporated by reference to Exhibit 4.2 to GlobalSantaFe
Corporation’s Annual Report on Form 10-K (Commission File No. 001-14634) for the year ended December 31, 2004)
|
|
4.17
|
Form of 5% Note due 2013 (incorporated by reference to Exhibit 4.10 to GlobalSantaFe
Corporation’s Annual Report on Form 10-K (Commission File No. 001-14634) for the year ended December 31, 2002)
|
|
4.18
|
Terms of 5% Note due 2013 (incorporated by reference to Exhibit 4.11 to GlobalSantaFe
Corporation’s Annual Report on Form 10-K (Commission File No. 001-14634) for the year ended December 31, 2002)
|
|
4.19
|
Senior Indenture, dated as of December 11, 2007, between Transocean Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.36 to Transocean Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the year ended December 31, 2007)
|
|
4.20
|
First
Supplemental Indenture, dated as of December 11, 2007, between Transocean Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.37 to Transocean Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the year ended December 31, 2007)
|
|
4.21
|
Second
Supplemental Indenture, dated as of December 11, 2007, between Transocean Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.38 to Transocean Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the year ended December 31, 2007)
|
|
4.22
|
Third Supplemental Indenture, dated as of December 18, 2008, among Transocean Ltd., Transocean Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.3 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on December 19, 2008)
|
|
4.23
|
Fourth Supplemental Indenture, dated as of September 21, 2010, among Transocean Ltd., Transocean Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to Transocean Ltd.’s Quarterly Report on Form 10-Q (Commission File No. 000-53533) for the quarter ended September 30, 2010)
|
|
4.24
|
Fifth
Supplemental Indenture, dated as of December
5, 2011, among Transocean
Ltd., Transocean
Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit
4.3 to Transocean
Ltd.’s Current Report on Form
8
-
K (Commission File No.
000-
53533) filed on December
5, 2011)
|
|
4.25
|
Sixth Supplemental Indenture, dated as of September 13, 2012, among Transocean Inc., Transocean Ltd. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.3 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on September 13, 2012)
|
|
4.26
|
Credit Agreement dated November
1, 2011 among Transocean
Inc., the lenders parties thereto and JPMorgan Chase Bank, N.A., as administrative agent, Crédit Agricole Corporate and Investment Bank and Citibank, N.A., as co
-
syndication agents, and The Bank of Tokyo
-
Mitsubishi UFJ, Ltd. and Wells Fargo Bank, National Association, as co
-
documentation agents, and J.P. Morgan Securities LLC, Crédit Agricole Corporate and Investment Bank, The Bank of Tokyo
-
Mitsubishi UFJ, Ltd., Citigroup Global Markets Inc., and Wells Fargo Securities
LLC, as joint lead arrangers and joint bookrunners (incorporated by reference to Exhibit
4.1 to Transocean
Ltd.’s Quarterly Report on Form
10
-
Q (Commission File No.
000-
53533) for the quarter
ended September
30, 2011)
|
|
4.27
|
Guarantee Agreement dated November
1, 2011 among Transocean
Ltd. and JPMorgan Chase Bank, N.A., as administrative agent under the Credit Agreement (incorporated by reference to Exhibit
4.2 to Transocean
Ltd.’s Quarterly
Report on Form
10
-
Q (Commission File No.
000-
53533) for the quarter
ended September
30, 2011)
|
|
4.28
|
First Amendment to Credit Agreement dated effective as of March 23, 2012 among Transocean Inc., the lenders parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Crédit Agricole Corporate and Investment Bank and Citibank, N.A., as co-syndication agents, and The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Bank, National Association, as co-documentation agents (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on March 30, 2012)
|
|
4.29
|
Credit Agreement, dated October 25, 2012, among Triton Nautilus Asset Leasing GmbH, the lender parties thereto and DNB Bank, ASA, as administrative agent (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on October 31, 2012)
|
|
10.1
|
Tax Sharing Agreement between Sonat
Inc. and Sonat Offshore Drilling
Inc. dated June 3, 1993 (incorporated by reference to Exhibit 10
-
(3) to Sonat Offshore Drilling Inc.’s Form 10-Q (Commission File No. 001-07746) for the quarter ended June 30, 1993)
|
|
*
|
10.2
|
Long-Term Incentive Plan of Transocean Ltd. (as amended and restated as of February 12, 2009) (incorporated by reference to Exhibit 10.5 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.3
|
Deferred Compensation Plan of Transocean
Offshore
Inc., as amended and restated effective January 1, 2000 (incorporated by reference to Exhibit 10.10 to Transocean Sedco Forex Inc.’s Annual Report on Form 10-K (Commission File No. 333-75899) for the year ended December 31, 1999)
|
|
*
|
10.4
|
GlobalSantaFe Corporation Key Employee Deferred Compensation Plan effective January 1, 2001; and Amendment to GlobalSantaFe Corporation Key Employee Deferred Compensation Plan effective November 20, 2001 (incorporated by reference to Exhibit 10.33 to the GlobalSantaFe Corporation Annual Report on Form 10-K for the year ended December 31, 2004)
|
|
*
|
10.5
|
Amendment to Transocean Inc. Deferred Compensation Plan (incorporate by reference to Exhibit 10.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on December 29, 2005)
|
|
*
|
10.6
|
Sedco Forex Employees Option Plan of Transocean Sedco Forex
Inc. effective December 31, 1999 (incorporated by reference to Exhibit 4.5 to Transocean Sedco Forex Inc.’s Registration Statement on Form S-8 (Registration No. 333-94569) filed January 12, 2000)
|
|
*
|
10.7
|
1997 Long
-
Term Incentive Plan of Reading & Bates
Corporation (incorporated by reference to Exhibit 99.A to Reading & Bates’ Proxy Statement (Commission File No. 001-05587) dated March 28, 1997)
|
|
*
|
10.8
|
1998 Employee Long
-
Term Incentive Plan of R&B Falcon Corporation (incorporated by reference to Exhibit 99.A to R&B Falcon Corporation’s Proxy Statement (Commission File No. 001-13729) dated April 23, 1998)
|
|
*
|
10.9
|
1998 Director Long
-
Term Incentive Plan of R&B Falcon Corporation (incorporated by reference to Exhibit 99.B to R&B Falcon Corporation’s Proxy Statement (Commission File No. 001-13729) dated April 23, 1998)
|
|
*
|
10.10
|
1999 Employee Long
-
Term Incentive Plan of R&B Falcon Corporation (incorporated by reference to Exhibit 99.A to R&B Falcon Corporation’s Proxy Statement (Commission File No. 001-13729) dated April 13, 1999)
|
|
*
|
10.11
|
1999 Director Long
-
Term Incentive Plan of R&B Falcon Corporation (incorporated by reference to Exhibit 99.B to R&B Falcon Corporation’s Proxy Statement (Commission File No. 001-13729) dated April 13, 1999)
|
|
10.12
|
Master Separation Agreement dated February 4, 2004 by and among Transocean Inc., Transocean
Holdings
Inc. and TODCO (incorporated by reference to Exhibit 99.2 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on March 3, 2004)
|
|
10.13
|
Tax Sharing Agreement dated February
4, 2004 between Transocean
Holdings
Inc. and TODCO (incorporated by reference to Exhibit 99.3 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on March 3, 2004)
|
|
10.14
|
Amended and Restated Tax Sharing Agreement effective as of February
4, 2004 between Transocean
Holdings
Inc. and TODCO (incorporated by reference to Exhibit 4.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on November 30, 2006)
|
|
*
|
10.15
|
Form of 2004 Performance
-
Based Nonqualified Share Option Award Letter (incorporated by reference to Exhibit 10.2 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on February 15, 2005)
|
|
*
|
10.16
|
Form of 2004 Director Deferred Unit Award (incorporated by reference to Exhibit 10.5 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on February 15, 2005)
|
|
*
|
10.17
|
Form of 2008 Director Deferred Unit Award (incorporated by reference to Exhibit 10.20 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.18
|
Form of 2009 Director Deferred Unit Award (incorporated by reference to Exhibit 10.19 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2009)
|
|
*
|
10.19
|
Performance Award and Cash Bonus Plan of Transocean Ltd. (incorporated by reference to Exhibit 10.21 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
† *
|
10.20
|
Amendment to Performance Award and Cash Bonus Plan of Transocean Ltd.
|
|
*
|
10.21
|
Executive Change of Control Severance Benefit (incorporated by reference to Exhibit 10.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on July 19, 2005)
|
|
*
|
10.22
|
Terms of July 2007 Employee Restricted Stock Awards (incorporated by reference to Exhibit 10.2 to Transocean Inc.’s Form 10-Q (Commission File No. 333-75899) for the quarter ended June
30, 2007)
|
|
*
|
10.23
|
Terms of July 2007 Employee Deferred Unit Awards (incorporated by reference to Exhibit 10.3 to Transocean Inc.’s Form 10-Q (Commission File No. 333-75899) for the quarter ended June
30, 2007)
|
|
*
|
10.24
|
Terms and Conditions of the July 2008 Employee Contingent Deferred Unit Award (incorporated by reference to Exhibit 10.2 to Transocean Inc.’s Form 10-Q (Commission File No. 333-75899) for the quarter ended June 30, 2008)
|
|
*
|
10.25
|
Terms and Conditions of the July 2008 Nonqualified Share Option Award (incorporated by reference to Exhibit 10.2 to Transocean Inc.’s Form 10-Q (Commission File No. 333-75899) for the quarter ended June 30, 2008)
|
|
*
|
10.26
|
Terms and Conditions of the February 2009 Employee Deferred Unit Award (incorporated by reference to Exhibit 10.28 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.27
|
Terms and Conditions of the February 2009 Employee Contingent Deferred Unit Award (incorporated by reference to Exhibit 10.29 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.28
|
Terms and Conditions of the February 2009 Nonqualified Share Option Award (incorporated by reference to Exhibit 10.30 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.29
|
Terms and Conditions of the February 2012 Long Term Incentive Plan Award (incorporated by reference to Exhibit 10.28 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2012)
|
|
† *
|
10.30
|
Transocean Ltd. Incentive Recoupment Policy
|
|
10.31
|
Put Option and Registration Rights Agreement, dated as of October 18, 2007, among Pacific Drilling Limited, Transocean
Pacific Drilling
Inc., Transocean Inc. and Transocean Offshore International Ventures Limited (incorporated by reference to Exhibit 10.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on October 24, 2007)
|
|
10.32
|
Form of Novation Agreement dated as of November 27, 2007 by and among GlobalSantaFe
Corporation, Transocean
Offshore Deepwater Drilling
Inc. and certain executives (incorporated by reference to Exhibit 10.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on December 3, 2007)
|
|
*
|
10.33
|
Form of Severance Agreement with GlobalSantaFe
Corporation Executive Officers (incorporated by reference to Exhibit 10.1 to GlobalSantaFe
Corporation’s Current Report on Form 8-K/A (Commission File No. 001-14634) filed on July 26, 2005)
|
|
*
|
10.34
|
Global Marine
Inc. 1990 Non
-
Employee Director Stock Option Plan (incorporated by reference to Exhibit 10.18 of Global Marine
Inc.’s Annual Report on Form 10-K (Commission File No. 1
-
5471) for the year ended December 31, 1991); First
Amendment (incorporated by reference to Exhibit 10.1 of Global Marine
Inc.’s Quarterly Report on Form 10-Q (Commission File No. 1
-
5471) for the quarter ended June
30, 1995); Second
Amendment (incorporated by reference to Exhibit 10.37 of Global Marine
Inc.’s Annual Report on Form 10-K (Commission File No. 1
-
5471) for the year ended December 31, 1996)
|
|
*
|
10.35
|
1997 Long
-
Term Incentive Plan (incorporated by reference to GlobalSantaFe
Corporation’s Registration Statement on Form S-8 (No. 333-7070) filed June
13, 1997); Amendment to 1997 Long Term Incentive Plan (incorporated by reference to GlobalSantaFe
Corporation’s Annual Report on Form 20
-
F (Commission File No. 001-14634) for the calendar year ended December 31, 1998); Amendment to 1997 Long Term Incentive Plan dated December 1, 1999 (incorporated by reference to GlobalSantaFe
Corporation’s Annual Report on Form 20
-
F (Commission File No. 001-14634) for the calendar year ended December 31, 1999)
|
|
*
|
10.36
|
GlobalSantaFe
Corporation 1998 Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.1 of Global Marine
Inc.’s Quarterly Report on Form 10-Q (Commission File No. 1
-
5471) for the quarter ended March 31, 1998); First
Amendment (incorporated by reference to Exhibit 10.2 of Global Marine
Inc.’s Quarterly Report on Form 10-Q (Commission File No. 1
-
5471) for the quarter ended June
30, 2000)
|
|
*
|
10.37
|
GlobalSantaFe
Corporation 2001 Non
-
Employee Director Stock Option and Incentive Plan (incorporated by reference to GlobalSantaFe
Corporation’s Registration Statement on Form S-8 (No. 333-73878) filed November 21, 2001)
|
|
*
|
10.38
|
GlobalSantaFe
Corporation 2001 Long
-
Term Incentive Plan (incorporated by reference to Exhibit 10.1 to GlobalSantaFe
Corporation’s Quarterly Report on Form 10-Q (Commission File No. 001-14634) for the quarter ended June
30, 2001)
|
|
*
|
10.39
|
GlobalSantaFe 2003 Long
-
Term Incentive Plan (as Amended and Restated Effective June
7, 2005) (incorporated by reference to Exhibit 10.4 to GlobalSantaFe
Corporation’s Quarterly Report on Form 10-Q (Commission File No. 001-14634) for the quarter ended June 30, 2005)
|
|
*
|
10.40
|
Transocean Ltd. Pension Equalization Plan, as amended and restated, effective January 1, 2009 (incorporated by reference to Exhibit 10.41 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
*
|
10.41
|
Transocean
U.S. Supplemental Retirement Benefit Plan, as amended and restated, effective as of November 27, 2007 (incorporated by reference to Exhibit 10.11 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on December 3, 2007)
|
|
*
|
10.42
|
GlobalSantaFe Corporation Supplemental Executive Retirement Plan (incorporated by reference to Exhibit 10.1 to the GlobalSantaFe Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2002)
|
|
*
|
10.43
|
Transocean U.S. Supplemental Savings Plan (incorporated by reference to Exhibit 10.44 to Transocean Ltd.’s Annual Report on Form 10-K (Commission File No. 000-53533) for the year ended December 31, 2008)
|
|
10.44
|
Form of Indemnification Agreement entered into between Transocean Ltd. and each of its Directors and Executive Officers (incorporated by reference to Exhibit 10.1 to Transocean Inc.’s Current Report on Form 8-K (Commission File No. 333-75899) filed on October 10, 2008)
|
|
*
|
10.45
|
Form of Assignment Memorandum for Executive Officers (incorporated by reference to Exhibit 10.5 to Transocean Ltd.’s Current Report on Form 8-K filed on December 19, 2008)
|
|
10.46
|
Drilling Contract between Vastar Resources, Inc. and R&B Falcon Drilling Co. dated December 9, 1998 with respect to
Deepwater Horizon
, as amended (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Quarterly Report on Form 10-Q (Commission File No. 000-53533) for the quarter ended June 30, 2010)
|
|
*
|
10.47
|
Executive Severance Benefit Policy (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on February 23, 2012)
|
|
10.48
|
Aker
Drilling Pre
-
Acceptance Agreement (incorporated by reference to Exhibit
10.1 to Transocean
Ltd.’s Current Report on Form
8
-
K (Commission File No.
000-
53533) filed on August
15, 2011)
|
|
10.49
|
Form of Pre
-
Acceptance Commitment Letter (incorporated by reference to Exhibit
10.2 to Transocean
Ltd.’s Current Report on Form
8
-
K (Commission File No.
000-
53533) filed on August
15, 2011)
|
|
*
|
10.50
|
Agreement with Gregory L. Cauthen (incorporated by reference to Exhibit
10.1 to Transocean
Ltd.’s Current Report on Form
8
-
K (Commission File No.
000-
53533) filed on January
10, 2012)
|
|
*
|
10.51
|
First Amendment to Agreement with Gregory L. Cauthen (incorporated by reference from Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on July 2, 2012)
|
|
*
|
10.52
|
Agreement with Ricardo H. Rosa (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on January 23, 2012)
|
|
*
|
10.53
|
Agreement with Robert Shaw (incorporated by reference to Exhibit 10.5 to Transocean Ltd.’s Quarterly Report on Form 10-Q (Commission File No. 000-53533) for the quarter ended March 31, 2012)
|
|
*
|
10.54
|
Letter Agreement, dated as of October 23, 2012, between Transocean Management Ltd. and Nick Deeming (incorporated by reference to Exhibit 10.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on October 24, 2012)
|
|
† *
|
10.55
|
Agreement with Allen M. Katz
|
|
†
|
21
|
Subsidiaries of Transocean Ltd.
|
|
†
|
23.1
|
Consent of Ernst & Young LLP
|
|
†
|
24
|
Powers of Attorney
|
|
†
|
31.1
|
CEO Certification Pursuant to Section 302 of the Sarbanes
-
Oxley Act of 2002
|
|
†
|
31.2
|
CFO Certification Pursuant to Section 302 of the Sarbanes
-
Oxley Act of 2002
|
|
†
|
32.1
|
CEO Certification Pursuant to Section 906 of the Sarbanes
-
Oxley Act of 2002
|
|
†
|
32.2
|
CFO Certification Pursuant to Section 906 of the Sarbanes
-
Oxley Act of 2002
|
|
99.1
|
Deferred Prosecution Agreement by and between The United States Department of Justice, Transocean
Inc. and Transocean
Ltd
.
(incorporated by reference to Exhibit 99.1 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on November 5, 2010)
|
|
99.2
|
Cooperation Guilty Plea Agreement by and between Transocean Deepwater Inc., Transocean Ltd. and the United States (incorporated by reference to Exhibit 99.2 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on January 3, 2013)
|
|
99.3
|
Consent Decree by and among Triton Asset Leasing GmbH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., Transocean Deepwater Inc. and the United States (incorporated by reference to Exhibit 99.2 to Transocean Ltd.’s Current Report on Form 8-K (Commission File No. 000-53533) filed on January 3, 2013)
|
|
†
|
101.
ins
|
XBRL Instance Document
|
|
†
|
101.
sch
|
XBRL Taxonomy Extension Schema
|
|
†
|
101.
cal
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
†
|
101.
def
|
XBRL Taxonomy Extension Definition Linkbase
|
|
†
|
101.
lab
|
XBRL Taxonomy Extension Label Linkbase
|
|
†
|
101.
pre
|
XBRL Taxonomy Extension Presentation Linkbase
|
Signature
|
Title
|
||
*
|
Chairman of the Board of Directors
|
||
J. Michael Talbert
|
|||
/s/ Steven L. Newman
|
President and Chief Executive Officer
|
||
Steven L. Newman
|
(Principal Executive Officer)
|
||
/s/ Esa Ikäheimonen
|
Executive Vice President, Chief Financial Officer
|
||
Esa Ikäheimonen
|
(Principal Financial Officer)
|
||
/s/ David Tonnel
|
Senior Vice President, Finance and Controller
|
||
David Tonnel
|
(Principal Accounting Officer)
|
||
*
|
Director
|
||
Glyn Barker
|
|||
*
|
Director
|
||
Jagjeet S. Bindra
|
|||
*
|
Director
|
||
Thomas W. Cason
|
|||
*
|
Director
|
||
Vanessa C.L. Chang
|
|||
*
|
Director
|
||
Tan Ek Kia
|
|||
*
|
Director
|
||
Steve Lucas
|
|||
*
|
Director
|
||
Martin B. McNamara
|
|||
*
|
Director
|
||
Edward R. Muller
|
|||
*
|
Director
|
||
Robert M. Sprague
|
|||
*
|
Director
|
||
Ian C. Strachan
|
|||
By: /s/ David Tonnel
|
|||
(Attorney
-
in
-
Fact)
|
|||
ARTICLE 1 SCOPE AND BASIS
|
3
|
||
Section 1.01
|
Basis
|
3
|
|
Section 1.02
|
Group
|
3
|
|
Section 1.03
|
Organization
|
3
|
|
Section 1.04
|
Interpretation
|
3
|
|
ARTICLE 2 CORPORATE ORGANIZATION
|
4
|
||
ARTICLE 3 THE BOARD
|
5
|
||
Section 3.01.
|
Constitution
|
5
|
|
Section 3.02.
|
Board Composition
|
5
|
|
Section 3.03.
|
Powers and Duties
|
5
|
|
Section 3.04.
|
Delegation of Management
|
7
|
|
Section 3.05.
|
Meetings
|
8
|
|
Section 3.06.
|
Attendance Quorum; Resolutions and Minutes
|
8
|
|
Section 3.07.
|
Information and Reporting
|
8
|
|
Section 3.08.
|
Compensation
|
8
|
|
Section 3.09.
|
Conflicts of Interest
|
9
|
|
ARTICLE 4 CHAIRMAN AND VICE-CHAIRMAN
|
10
|
||
Section 4.01.
|
Power and Duties
|
10
|
|
Section 4.02.
|
Authority
|
10
|
|
ARTICLE 5 BOARD COMMITTEES
|
11
|
||
Section 5.01.
|
General
|
11
|
|
Section 5.02.
|
Individual Committees
|
11
|
|
ARTICLE 6 EXECUTIVE MANAGEMENT | CHIEF EXECUTIVE OFFICER
|
12
|
||
Section 6.01.
|
Executive Management | Powers and Duties
|
12
|
|
Section 6.02.
|
Reporting
|
12
|
|
ARTICLE 7 EXECUTIVE MANAGEMENT | OFFICERS
|
12
|
||
Section 7.01.
|
Composition
|
12
|
|
Section 7.02.
|
Powers and Duties
|
12
|
|
Section 7.03.
|
Term of Office
|
12
|
|
ARTICLE 8 FISCAL YEAR
|
13
|
||
Section 8.01.
|
Determination
|
13
|
|
ARTICLE 9 GENERAL PROVISIONS
|
13
|
||
Section 9.01.
|
Signatory Power
|
13
|
|
Section 9.02.
|
Insurance
|
13
|
|
Section 9.03.
|
Confidentiality
|
13
|
|
Section 9.04.
|
Publicity
|
13
|
|
Section 9.05.
|
Certain Arrangements; Compliance
|
13
|
|
ARTICLE 10 FINAL PROVISIONS
|
14
|
||
Section 10.01.
|
Effectiveness
|
14
|
|
Section 10.02.
|
Corporate Governance Guidelines
|
14
|
|
Section 10.03.
|
Change of or Amendments to these Organizational Regulations
|
14
|
1.
|
Term
.
|
2.
|
Position and Duties
.
|
3.
|
Compensation and Related Matters
. The following terms and conditions shall apply to the Executive’s compensation and benefits during the Employment Term:
|
4.
|
Representations and Warranties
. The Executive represents and warrants to the Company that the execution, delivery and performance by the Executive of this Agreement do not and will not conflict with or result in a violation of any provision of, or constitute a default under, any contract, agreement, instrument or obligation to which the Executive is a party or by which the Executive is bound.
|
5.
|
Confidentiality
. The Executive acknowledges that, in the course of his employment with the Company, he will acquire Confidential Information which is and remains the exclusive property of the Company and/or its affiliates. The Executive agrees, during the Employment Term and following the termination of his employment with the Company, not to divulge to any other person, firm, corporation or legal entity, any Confidential Information or trade secret of the Company or its affiliates, except as required by law. “Confidential Information” shall mean information: (A) disclosed to or known by the Executive as a consequence of or through the Executive’s employment with the Company and/or its affiliates; (B) not generally known outside the Company and its affiliates; and (C) which relates to any aspect of the Company and its affiliates, or their business, finances, operation plans, budgets, research, or strategic development. “Confidential Information” includes, but is not limited to, trade secrets, proprietary information, financial documents, long range plans, customer information, employee compensation, marketing strategy, data bases, pricing and costing data, patent information, computer software developed by the Company or its affiliates, investments made by the Company or its affiliates, and any information provided to the Company or its affiliates by a third party under restrictions against disclosure or use by the Company, its affiliates or others.
|
6.
|
Non-Solicitation of Customers
. The Executive agrees that, during the one year period following the termination of his employment with the Company, he will not directly or indirectly, on his own behalf or on behalf of others, solicit or accept any business producing or providing products or services which the Company or any of its affiliates produces or provides from any person that was a customer or client or prospective customer or client of the Company or its affiliates during the period during which the Executive was employed with the Company or its affiliates.
|
7.
|
Non-Solicitation of Employees
. The Executive agrees that during the one year period following the termination of his employment with the Company, he will not either directly or indirectly, on his own behalf or on behalf of others, hire, solicit, induce, recruit or encourage any of the employees of the Company or its affiliates to leave their employment, or attempt to solicit, induce, recruit, or hire employees of the Company or its affiliates.
|
8.
|
Non-Disparagement
. The Executive agrees that, during the Employment Term and following the termination of his employment with the Company, in acting alone or in concert with others, he will not (A) publicly criticize or disparage the Company, its affiliates or any officers, employees, directors or agents of the Company or its affiliates, or privately criticize or disparage the Company, its affiliates or any officers, employees, directors or agents of the Company or its affiliates in a manner intended or reasonably calculated to result in public embarrassment to, or injury to the reputation of the Company, its affiliates or any officers, employees, directors or agents of the Company or its affiliates; (B) directly or indirectly, acting alone or acting in concert with others, institute or prosecute, or assist any person in any manner in instituting or prosecuting, any legal proceedings of any nature against the Company or its affiliates; (C) commit damage to the property of the Company or its affiliates or otherwise engage in any misconduct which is injurious to the business or reputation of the Company or its affiliates; or (D) take any other action, or assist any person in taking any other action, that is adverse to the interests of the Company or its affiliates or inconsistent with fostering the goodwill of the Company or its affiliates; provided, however, that nothing in this Section 8 shall apply to or restrict in any way the communication of information by the Executive to any state, federal or governmental law enforcement agency or require notice to the Company or its affiliates, and the Executive will not be in breach of the covenant contained in (B) above solely by reason of his testimony which is compelled by process of law.
|
9.
|
Cooperation
. The Executive agrees, following his termination of employment, to reasonably cooperate with and make himself available on a continuing basis to the Company and affiliates, predecessors and successors (the “Transocean Group”) and their representatives and legal advisors in connection with any matters in which he was involved during his employment with the Company or any then existing or future claims, investigations, administrative proceedings, lawsuits and other legal and business matters as reasonably requested by the Company. The Executive also agrees to promptly send the Executive Vice President and Chief of Staff, Transocean Ltd. copies of all correspondence (for example, but not limited to, subpoenas) received by him in connection with any such matters involving or relating to the Transocean Group, unless he is expressly prohibited by law from so doing. The Executive agrees not to cooperate voluntarily in any third party claims against the Transocean Group. The Executive agrees that nothing in this Agreement restricts his ability to appropriately respond to a subpoena or other request from the government or regulators. The Company agrees to reimburse the Executive for his reasonable out-of-pocket expenses incurred in connection with the performance of his obligations under this Section.
|
10.
|
Section 409A
. The Agreement is intended to comply with the provisions of Section 409A of the Code and applicable Treasury authorities (“Section 409A”) and, wherever possible, shall be construed and interpreted to ensure that any payments that may be paid, distributed, provided, reimbursed, deferred or settled under this Agreement will not be subject to any additional taxation under Section 409A. This Section 10 does not create an obligation on the part of Company to modify the Agreement in the future and does not guarantee that the amounts or benefits owed under the Agreement will not be subject to interest and penalties under Section 409A. Notwithstanding any provision of this Agreement to the contrary, if the Executive is a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code on the Executive’s Termination Date, then any payment or benefit to be paid, transferred or provided to the Executive pursuant to the provisions of this Agreement that would be subject to the tax imposed by Section 409A of the Code if paid, transferred or provided at the time otherwise specified in this Agreement shall be delayed and thereafter paid, transferred or provided on the first Business Day that is six months after the Executive’s Termination Date (or if earlier, within 30 days after the date of the Executive’s death) to the extent necessary for such payment or benefit to avoid being subject to the tax imposed by Section 409A of the Code. Each of the payments due to the Executive with respect to the Deferred Units under Section 3(c) of this Agreement are designated as separate payments for purposes of Section 409A and the short-term deferral rules under Treasury Regulation Section 1.409A-1(b)(4)(i)(F). As a result, payments under Section 3(c) that are by their terms scheduled to be made on or before March 15, 2013 and March 15, 2014 are exempt from the requirements of Code Section 409A under the separation pay and short-term deferral exemption provisions.
|
11.
|
Enforcement of Agreement
. No waiver or nonaction with respect to any breach by the other party of any provision of this Agreement, nor the waiver or nonaction with respect to any breach of the provisions of similar agreements with other employees or consultants shall be construed to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself. Should any provisions hereof be held to be invalid or wholly or partially unenforceable, such holdings shall not invalidate or void the remainder of this Agreement. Portions held to be invalid or unenforceable shall be revised and reduced in scope so as to be valid and enforceable, or, if such is not possible, then such portion shall be deemed to have been wholly excluded with the same force and effect as if they had never been included herein.
|
12.
|
Choice of Law
. This Agreement shall be interpreted and construed in accordance with and shall be governed by the laws of the State of Texas
,
notwithstanding any conflicts of law principles which may refer to the laws of any other jurisdiction.
|
13.
|
Notices
. Notices provided for in this Agreement shall be in writing and shall either be personally delivered by hand or sent by: (i) mail service, postage prepaid, properly packaged, addressed and deposited with the mail service system; (ii) via facsimile transmission or electronic mail if the receiver acknowledges receipt; or (iii) via Federal Express or other expedited delivery service provided that acknowledgment of receipt is received and retained by the deliverer and furnished to the sender. Notices to the Executive by the Company shall be delivered to the last address on file in the Executive’s personnel records, and notices by the Executive to the Company shall be delivered to Transocean Management Ltd., c/o Executive Vice President and Chief of Staff, Chemin de Blandonnet 10, CH-1214 Vernier, Switzerland.
|
14.
|
Assignment
. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and any successors or assigns of the Company.
|
15.
|
Amendment
. This Agreement may not be modified or amended in any respect except by an instrument in writing signed by the party against whom such modification or amendment is sought to be enforced. No person, other than pursuant to a resolution of the Board or a committee thereof, shall have authority on behalf of the Company to agree to modify, amend or waive any provision of this Agreement or anything in reference thereto.
|
16.
|
Withholding Taxes
. The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
|
17.
|
Nonalienation of Benefits
. The Executive shall not have any right to pledge, hypothecate, anticipate or in any way create a lien upon any payments or other benefits provided under this Agreement; and no benefits payable hereunder shall be assignable in anticipation of payment either by voluntary or involuntary acts, or by operation of law, except by will or pursuant to the laws of descent and distribution.
|
18.
|
Entire Agreement
. This Agreement constitutes the entire agreement between the parties hereto concerning the subject matter hereof, and from and after the date of this Agreement, this Agreement shall supersede any other prior agreement or understanding, both written and oral, between the parties with respect to such subject matter.
|
19.
|
Captions
. The captions herein are inserted for convenience of reference only, do not constitute a part of this Agreement, and shall not affect in any manner the meaning or interpretation of this Agreement.
|
GlobalSantaFe Operations Inc.
|
Cayman Islands
|
GlobalSantaFe Overseas Limited
|
Bahamas
|
GlobalSantaFe Saudi Arabia Ltd.
|
British Virgin Islands
|
GlobalSantaFe Services (BVI) Inc.
|
Cayman Islands
|
GlobalSantaFe Services Netherlands B.V.
|
Netherlands
|
GlobalSantaFe Servicios de Venezuela, C.A.
|
Venezuela
|
GlobalSantaFe South America LLC
|
Delaware
|
GlobalSantaFe Southeast Asia Drilling Pte. Ltd.
|
Singapore
|
GlobalSantaFe Tampico, S. de R.L. de C.V.
|
Mexico
|
GlobalSantaFe Techserv (North Sea) Limited
|
England
|
GlobalSantaFe U.S. Drilling Inc.
|
Delaware
|
GlobalSantaFe U.S. Holdings Inc.
|
Delaware
|
GlobalSantaFe West Africa Drilling Limited
|
Bahamas
|
GSF Caymans Holdings Inc.
|
Cayman Islands
|
GSF Leasing Services GmbH
|
Switzerland
|
Hellerup Finance International
|
Ireland
|
Indigo Drilling Limited
|
Nigeria
|
Intermarine Services (International) Limited
|
Bahamas
|
Intermarine Services Inc.
|
Texas
|
Intermarine Servicos Petroliferos Ltda.
|
Brazil
|
International Chandlers, Inc.
|
Texas
|
Key Perfuracoes Maritimas Limitada
|
Brazil
|
Laterite Mining Inc.
|
Philippines
|
Minerales Submarinos Mexicanos S.A.
|
Mexico
|
Nickel Development Inc.
|
Philippines
|
NRB Drilling Services Limited
|
Nigeria
|
Oilfield Services, Inc.
|
Cayman Islands
|
P.T. Santa Fe Supraco Indonesia
|
Indonesia
|
Platform Capital N.V.
|
Netherlands Antilles
|
Platform Financial N.V.
|
Netherlands Antilles
|
PT. Transocean Indonesia
|
Indonesia
|
R&B Falcon (A) Pty Ltd
|
Western Australia
|
R&B Falcon (Caledonia) Limited
|
England
|
R&B Falcon (Ireland) Limited
|
Ireland
|
R&B Falcon (M) Sdn. Bhd.
|
Malaysia
|
R&B Falcon (U.K.) Limited
|
England & Wales
|
R&B Falcon B.V.
|
Netherlands
|
R&B Falcon Deepwater (UK) Limited
|
England
|
R&B Falcon Drilling (International & Deepwater) Inc. LLC
|
Delaware
|
R&B Falcon Drilling Co. LLC
|
Oklahoma
|
R&B Falcon Drilling Limited LLC
|
Oklahoma
|
R&B Falcon Exploration Co., LLC
|
Oklahoma
|
R&B Falcon International Energy Services B.V.
|
Netherlands
|
R&B Falcon Offshore Limited, LLC
|
Oklahoma
|
R&B Falcon, Inc. LLC
|
Oklahoma
|
Ranger Insurance Limited
|
Cayman Islands
|
RB Mediterranean Ltd.
|
Cayman Islands
|
RBF Drilling Co. LLC
|
Oklahoma
|
RBF Drilling Services, Inc. LLC
|
Oklahoma
|
RBF Exploration LLC
|
Delaware
|
RBF Finance Co.
|
Delaware
|
RBF Rig Corporation, LLC
|
Oklahoma
|
Reading & Bates Coal Co., LLC
|
Nevada
|
Reading & Bates Demaga Perfuraçoes Ltda.
|
Brazil
|
Resource Rig Supply Inc.
|
Delaware
|
Rig 127 Limited
|
Cayman Islands
|
Rig 134 Limited
|
Cayman Islands
|
Safemal Drilling Sdn. Bhd.
|
Malaysia
|
Santa Fe Braun Inc.
|
Delaware
|
Santa Fe Construction Company
|
Delaware
|
Santa Fe Drilling Company (U.K.) Limited
|
England
|
Santa Fe Drilling Company of Venezuela, C.A.
|
California
|
Santa Fe Servicos de Perfuracao Limitada
|
Brazil
|
Saudi Drilling Company Limited
|
Saudi Arabia
|
SDS Offshore Limited
|
England
|
Sedco Forex Holdings Limited
|
Cayman Islands
|
Sedco Forex International Services, S.A.
|
Panama
|
Sedco Forex International, Inc.
|
Panama
|
Sedco Forex of Nigeria Limited
|
Nigeria
|
Sedco Forex Technology, Inc.
|
Panama
|
Sedneth Panama, S.A.
|
Panama
|
Sefora Maritime Limited
|
Cayman Islands
|
Services Petroliers Transocean
|
France
|
Servicios Petroleros Santa Fe, S.A.
|
Venezuela
|
Shore Services, LLC
|
Texas
|
Sonat Offshore do Brasil Perfuracoes Maritimas Ltda.
|
Brazil
|
Sonat Offshore S.A.
|
Panama
|
T. I. International Mexico S. de R.L. de C.V.
|
Mexico
|
TODDI Holdings LLC
|
Delaware
|
Transocean 1 AS
|
Norway
|
Transocean Africa Drilling Limited
|
Cayman Islands
|
Transocean Alaskan Ventures Inc.
|
Delaware
|
Transocean Arctic Limited
|
Cayman Islands
|
Transocean Asia Services Sdn Bhd
|
Malaysia
|
Transocean Barents ASA
|
Norway
|
Transocean Benefit Services Srl
|
Barbados
|
Transocean Brasil Ltda.
|
Brazil
|
Transocean Britannia Limited
|
Cayman Islands
|
Transocean Canada Co.
|
Nova Scotia
|
Transocean Canada Drilling Services Ltd.
|
Nova Scotia
|
Transocean Construction Management Ltd.
|
Cayman Islands
|
Transocean Cunningham LLC
|
Delaware
|
Transocean Cyprus Capital Management Public Limited
|
Cyprus
|
Transocean Cyprus Drilling Operations Public Limited
|
Cyprus
|
Transocean Deepwater Drilling Services Limited
|
Cayman Islands
|
Transocean Deepwater Frontier Limited
|
Cayman Islands
|
Transocean Deepwater Holdings Limited
|
Cayman Islands
|
Transocean Deepwater Inc.
|
Delaware
|
Transocean Deepwater Mauritius
|
Mauritius
|
Transocean Deepwater Nautilus Limited
|
Cayman Islands
|
Transocean Deepwater Pathfinder Limited
|
Cayman Islands
|
Transocean Discoverer 534 LLC
|
Delaware
|
Transocean Drilling (Nigeria) Ltd.
|
Nigeria
|
Transocean Drilling (U.S.A.) Inc.
|
Texas
|
Transocean Drilling Israel Ltd.
|
Cayman Islands
|
Transocean Drilling Limited
|
Scotland
|
Transocean Drilling Namibia Inc.
|
Cayman Islands
|
Transocean Drilling Offshore International Limited
|
Cayman Islands
|
Transocean Drilling Offshore S.a.r.l.
|
Luxembourg
|
Transocean Drilling Offshore Ventures Limited
|
Cayman Islands
|
Transocean Drilling Resources Limited
|
Cayman Islands
|
Transocean Drilling Sdn. Bhd.
|
Malaysia
|
Transocean Drilling Services (India) Private Limited
|
India
|
Transocean Drilling Services Inc.
|
Delaware
|
Transocean Drilling Services Offshore Inc.
|
British Virgin Islands
|
Transocean Drilling Turkey Limited
|
Cayman Islands
|
Transocean Drilling U.K. Limited
|
Scotland
|
Transocean Eastern Pte. Ltd.
|
Singapore
|
Transocean Enterprise Inc.
|
Delaware
|
Transocean Finance Limited
|
Cayman Islands
|
Transocean Financing GmbH
|
Switzerland
|
Transocean GSF Monitor Limited
|
Cayman Islands
|
Transocean Holdings LLC
|
Delaware
|
Transocean Hungary Holdings LLC
|
Hungary
|
Transocean Inc.
|
Cayman Islands
|
Transocean Inc. Luxembourg Asset Management S.C.S.
|
Luxembourg
|
Transocean India Limited
|
Cayman Islands
|
Transocean International Drilling Inc.
|
Delaware
|
Transocean International Drilling Limited
|
Cayman Islands
|
Transocean International Holdings Limited
|
Cayman Islands
|
Transocean International Resources, Limited
|
British Virgin Islands
|
Transocean Investimentos Ltda.
|
Brazil
|
Transocean Investments S.a.r.l.
|
Luxembourg
|
Transocean Jupiter LLC
|
Delaware
|
Transocean Labrador Limited
|
Cayman Islands
|
Transocean LR34 LLC
|
Delaware
|
Transocean Magellan Limited
|
Cayman Islands
|
Transocean Management Inc.
|
Delaware
|
Transocean Management Ltd.
|
Switzerland
|
Transocean Marine Limited
|
Cayman Islands
|
Transocean Mediterranean LLC
|
Delaware
|
Transocean Nautilus Limited
|
Cayman Islands
|
Transocean North Africa Inc.
|
Cayman Islands
|
Transocean North Sea Limited
|
Bahamas
|
Transocean Norway Drilling AS
|
Norway
|
Transocean Norway Operations AS
|
Norway
|
Transocean Norway Operations Support AS
|
Norway
|
Transocean Offshore (Cayman) Inc.
|
Cayman Islands
|
Transocean Offshore (North Sea) Ltd.
|
Cayman Islands
|
Transocean Offshore (U.K.) Inc.
|
Delaware
|
Transocean Offshore Canada Services Ltd.
|
Nova Scotia
|
Transocean Offshore Caribbean Sea, L.L.C.
|
Delaware
|
Transocean Offshore D.V. Inc.
|
Delaware
|
Transocean Offshore Deepwater Drilling Inc.
|
Delaware
|
Transocean Offshore Deepwater Holdings Limited
|
Cayman Islands
|
Transocean Offshore Drilling Limited
|
England
|
Transocean Offshore Drilling Services LLC
|
Delaware
|
Transocean Offshore Europe Limited
|
Cayman Islands
|
Transocean Offshore Gulf of Guinea II Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea III Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea IV Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea V Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea VI Limited
|
British Virgin Islands
|
Transocean Offshore Gulf of Guinea VII Limited
|
British Virgin Islands
|
Transocean Offshore Holdings Limited
|
Cayman Islands
|
Transocean Offshore International Limited
|
Cayman Islands
|
Transocean Offshore International Ventures Limited
|
Cayman Islands
|
Transocean Offshore Limited
|
Cayman Islands
|
Transocean Offshore Management Services Limited
|
Cayman Islands
|
Transocean Offshore Nigeria Limited
|
Nigeria
|
Transocean Offshore Norway Inc.
|
Delaware
|
Triton Nautilus Asset Leasing GmbH
|
Switzerland
|
Triton Nautilus Asset Management LLC
|
Hungary
|
Triton Offshore Leasing Services Limited
|
Malaysia
|
Triton Pacific Limited
|
England
|
TSSA - Servicos de Apoio, Lda.
|
Angola
|
Turnkey Ventures de Mexico Inc.
|
Delaware
|
Wilrig Offshore (UK) Limited
|
England
|
(1)
|
Registration Statement (Form S-4 No. 333-46374-99) as amended by Post-Effective Amendments on Form S-8 and Form S-3,
|
(2)
|
Registration Statement (Form S-4 No. 333-54668-99) as amended by Post-Effective Amendments on Form S-8 and Form S-3,
|
(3)
|
Registration Statement (Form S-8 No. 033-64776-99) as amended by Post-Effective Amendments on Form S-8,
|
(4)
|
Registration Statement (Form S-8 No. 333-12475-99) as amended by Post-Effective Amendments on Form S-8,
|
(5)
|
Registration Statement (Form S-8 No. 333-58211-99) as amended by Post-Effective Amendments on Form S-8,
|
(6)
|
Registration Statement (Form S-8 No. 333-58203-99) as amended by Post-Effective Amendments on Form S-8,
|
(7)
|
Registration Statement (Form S-8 No. 333-94543-99) as amended by Post-Effective Amendment on Form S-8,
|
(8)
|
Registration Statement (Form S-8 No. 333-94569-99) as amended by Post-Effective Amendment on Form S-8,
|
(9)
|
Registration Statement (Form S-8 No. 333-94551-99) as amended by Post-Effective Amendment on Form S-8,
|
(10)
|
Registration Statement (Form S-8 No. 333-75532-99) as amended by Post-Effective Amendment on Form S-8,
|
(11)
|
Registration Statement (Form S-8 No. 333-75540-99) as amended by Post-Effective Amendment on Form S-8,
|
(12)
|
Registration Statement (Form S-8 No. 333-106026-99) as amended by Post-Effective Amendment on Form S-8,
|
(13)
|
Registration Statement (Form S-8 No. 333-115456-99) as amended by Post-Effective Amendment on Form S-8,
|
(14)
|
Registration Statement (Form S-8 No. 333-130282-99) as amended by Post-Effective Amendment on Form S-8,
|
(15)
|
Registration Statement (Form S-8 No. 333-147669-99) as amended by Post-Effective Amendment on Form S-8,
|
(16)
|
Registration Statement (Form S-8 No. 333-163320), and
|
(17)
|
Registration Statement (Form S-3 No. 333-169401);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated: March 1, 2013
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/s/ Steven L. Newman
Steven L. Newman
President and Chief Executive Officer
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
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b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
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a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated: March 1, 2013
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/s/ Esa Ikäheimonen
Esa Ikäheimonen
Executive Vice President, Chief Financial Officer
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(1)
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the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated: March 1, 2013
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/s/ Steven L. Newman
Steven L. Newman
President and Chief Executive Officer
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(1)
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the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated: March 1, 2013
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/s/ Esa Ikäheimonen
Esa Ikäheimonen
Executive Vice President, Chief Financial Officer
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