ZUG, Switzerland--(BUSINESS WIRE)--May. 6, 2009--
Transocean Ltd. (NYSE:RIG) today reported net income attributable to
controlling interest for the three months ended March 31, 2009 of $942
million, or $2.93 per diluted share, compared to net income attributable
to controlling interest of $1.149 billion, or $3.58 per diluted share
for the three months ended March 31, 2008. Revenues for the first
quarter of 2009 were $3.118 billion compared to $3.110 billion for the
first quarter of 2008.
First quarter 2009 results were adversely impacted by certain net
charges, after tax, totaling $264 million, or $0.82 per diluted share,
as follows:
-
$221 million of write-downs to fair market value for the GSF Arctic
II and GSF Arctic IV semisubmersible rigs held for sale and
-
$43 million of discrete tax items, payments associated with the merger
of Transocean and GlobalSantaFe Corporation and losses on the
retirement of debt.
First quarter 2008 reported income included certain net charges,
after-tax, totaling $30 million, or $0.09 per diluted share, consisting
of $27 million in discrete tax items, $1 million in merger-related costs
and a $2 million loss related to the retirement of debt.
Operations Quarterly Review
Revenues for the three months ended March 31, 2009 decreased 4.6 percent
to $3.118 billion compared to revenues of $3.270 billion during the
three months ended December 31, 2008. Of the $152 million
quarter-to-quarter decrease, $127 million reflected a decline in
integrated services and other revenue and $29 million resulted from
reduced contract drilling intangible revenues.
Operating and maintenance expenses for the three months ended March 31,
2009 were $1.171 billion compared to $1.408 billion for the prior
three-month period, a decrease of $237 million or 16.8 percent. The
quarter-to-quarter decline in operating and maintenance costs consisted
of $92 million from reduced non-drilling activity, $77 million related
to a reduction in shipyard and maintenance projects and the remainder
related to reductions in a variety of items including bad debt expense,
strengthening of the U.S. dollar and decreases in drilling activity.
Depreciation, depletion and amortization totaled $355 million in the
first quarter of 2009, a decrease of 10.4 percent compared to $396
million in the fourth quarter of 2008. The $41 million
quarter-to-quarter decrease resulted primarily from the cumulative
effect of various adjustments related to the merger with GlobalSantaFe
made during fourth quarter 2008 that did not recur in the first quarter
2009.
General and administrative expenses decreased 5.1 percent to $56 million
for the first quarter of 2009 compared to $59 million for the fourth
quarter 2008. The decrease primarily reflects a reduction in costs
related to the company’s move to Switzerland incurred in the first
quarter of 2009 compared to the fourth quarter 2008.
Interest Expense and Liquidity
Interest expense, net of amounts capitalized, for the first quarter of
2009 totaled $136 million compared to $167 million for the fourth
quarter of 2008. The decrease in interest expense included $16 million
from increased capitalized interest and $11 million from lower interest
rates and lower balances in our commercial paper program.
During the first quarter 2009, Transocean adopted Financial Accounting
Standards Board Staff Position No. APB 14-1, Accounting for
Convertible Debt Instruments That May Be Settled in Cash upon Conversion
(Including Partial Cash Settlement) (“FSP APB 14-1”), which requires
the company to separately account for the liability and equity
components of its convertible debt instruments and to reflect interest
expense at its market rate of borrowing. For the first quarter 2009,
interest expense, net of amounts capitalized, included a non-cash
increase of approximately $45 million resulting from the adoption of FSP
APB 14-1. For the full year 2009, interest expense, net of amounts
capitalized, is expected to include a non-cash increase of $176 million
resulting from the adoption of FSP APB 14-1.
First quarter 2008 results are presented as adjusted for the
retrospective application of FSP APB 14-1. For the first quarter 2008,
interest expense, net of amounts capitalized, included a non-cash
increase of $40 million resulting from the retrospective application of
FSP APB 14-1. For the full year 2008, retrospective application of FSP
APB 14-1 will result in a non-cash increase to interest expense, net of
amounts capitalized, of $171 million. Additionally, the retrospective
application of FSP APB 14-1 to our balance sheet as of March 31, 2008
caused our total assets to decrease by $5 million, our liabilities to
decrease by $776 million and our equity to increase by $771 million.
As of March 31, 2009, total debt was $12.964 billion, compared to total
debt of $13.557 billion as of December 31, 2008 (as adjusted for FSP APB
14-1). The decrease in total debt of $593 million during the first
quarter 2009 resulted primarily from debt repayments, partially offset
by additional borrowings under our joint venture credit facilities and
increased amortization of discounts and fair value adjustments. The
retrospective application of FSP APB 14-1 to our balance sheet as of
December 31, 2008 caused our total assets to increase by $11 million,
our liabilities to decrease by $629 million and our equity to increase
by $640 million.
Cash flow from operating activities totaled $1.441 billion for the first
quarter of 2009 compared to $1.196 billion for the fourth quarter of
2008.
Effective Tax Rate
Transocean’s reported Effective Tax Rate(1) of 21.1 percent
for the first quarter of 2009 reflects the unfavorable impact of the
write-down of rigs to fair market value, as described above, as well as
various discrete tax items of $36 million which primarily resulted from
changes in estimates. Excluding these various discrete items, the Annual
Effective Tax Rate(2) for the first quarter of 2009 was 15.2
percent.
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. Eastern
time, 4:00 p.m. Swiss time, on May 6, 2009. To participate, dial
913-312-1522 and refer to confirmation code 1643292 approximately five
to 10 minutes prior to the scheduled start time of the call.
In addition, the conference call will be simultaneously broadcast over
the Internet in a listen-only mode and can be accessed by logging onto
Transocean’s website at www.deepwater.com
and selecting “Investor Relations/News & Events/Webcasts &
Presentations.” A file containing five charts to be discussed during the
conference call, titled “1Q09 Charts,” has been posted to Transocean’s
website and can also be found by selecting “Investor Relations/News &
Events/Webcasts & Presentations.” The conference call may also be
accessed via the Internet at www.CompanyBoardroom.com
by typing in Transocean’s New York Stock Exchange trading symbol, “RIG.”
A telephonic replay of the conference call should be available after
1:00 p.m. Eastern time, 7:00 p.m. Swiss time, on May 6, 2009 and can be
accessed by dialing 719-457-0820 and referring to the passcode 1643292.
Also, a replay will be available through the Internet and can be
accessed by visiting either of the above-referenced Worldwide Web
addresses.
Transocean is the world's largest offshore drilling contractor and the
leading provider of drilling management services worldwide. With a fleet
of 136 mobile offshore drilling units plus 10 announced ultra-deepwater
newbuild units, Transocean's fleet is considered one of the most modern
and versatile in the world due to its emphasis on technically demanding
segments of the offshore drilling business. Transocean owns or operates
a contract drilling fleet of 39 High-Specification Floaters
(Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and
drillships), 28 Midwater Floaters, 10 High-Specification Jackups, 55
Standard Jackups and other assets utilized in the support of offshore
drilling activities worldwide.
(1) Effective Tax Rate is defined as income tax expense
divided by income before income taxes. See the accompanying schedule
entitled "Supplemental Effective Tax Rate Analysis."
(2) Annual Effective Tax Rate is defined as income tax
expense excluding various discrete items (such as changes in estimates
and tax on items excluded from income before income taxes) divided by
income before income taxes excluding gains on sales and similar items
pursuant to Financial Accounting Standards Board Interpretation No. 18.
See the accompanying schedule entitled "Supplemental Effective Tax Rate
Analysis."
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues
|
$
|
2,834
|
|
|
|
$
|
2,632
|
|
|
Contract drilling intangible revenues
|
|
104
|
|
|
|
|
224
|
|
|
Other revenues
|
|
180
|
|
|
|
|
254
|
|
|
|
|
3,118
|
|
|
|
|
3,110
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
1,171
|
|
|
|
|
1,157
|
|
|
Depreciation, depletion and amortization
|
|
355
|
|
|
|
|
367
|
|
|
General and administrative
|
|
56
|
|
|
|
|
49
|
|
|
|
|
1,582
|
|
|
|
|
1,573
|
|
|
Impairment loss
|
|
(221
|
)
|
|
|
|
-
|
|
|
Gain from disposal of assets, net
|
|
4
|
|
|
|
|
3
|
|
|
Operating income
|
|
1,319
|
|
|
|
|
1,540
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
1
|
|
|
|
|
13
|
|
|
Interest expense, net of amounts capitalized
|
|
(136
|
)
|
|
|
|
(177
|
)
|
|
Other, net
|
|
6
|
|
|
|
|
(8
|
)
|
|
|
|
(129
|
)
|
|
|
|
(172
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
1,190
|
|
|
|
|
1,368
|
|
|
Income tax expense
|
|
251
|
|
|
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
939
|
|
|
|
|
1,150
|
|
|
Net income (loss) attributable to noncontrolling interest
|
|
(3
|
)
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to controlling interest
|
$
|
942
|
|
|
|
$
|
1,149
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.94
|
|
|
|
$
|
3.62
|
|
|
Diluted
|
$
|
2.93
|
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
319
|
|
|
|
|
317
|
|
|
Diluted
|
|
320
|
|
|
|
|
321
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
(As adjusted)
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,302
|
|
|
$
|
963
|
|
|
Short-term investments
|
|
|
112
|
|
|
|
333
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$115 and $114 at March 31, 2009 and December 31, 2008, respectively
|
|
|
2,884
|
|
|
|
2,864
|
|
|
Materials and supplies, net of allowance for obsolescence of $54
and $49 at March 31, 2009 and December 31, 2008, respectively
|
|
|
458
|
|
|
|
432
|
|
|
Deferred income taxes, net
|
|
|
50
|
|
|
|
63
|
|
|
Assets held for sale
|
|
|
244
|
|
|
|
464
|
|
|
Other current assets
|
|
|
165
|
|
|
|
230
|
|
|
Total current assets
|
|
|
5,215
|
|
|
|
5,349
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
|
26,373
|
|
|
|
25,836
|
|
|
Less accumulated depreciation
|
|
|
5,319
|
|
|
|
4,975
|
|
|
Property and equipment, net
|
|
|
21,054
|
|
|
|
20,861
|
|
|
Goodwill
|
|
|
8,134
|
|
|
|
8,128
|
|
|
Other assets
|
|
|
856
|
|
|
|
844
|
|
|
Total assets
|
|
$
|
35,259
|
|
|
$
|
35,182
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
745
|
|
|
$
|
914
|
|
|
Accrued income taxes
|
|
|
299
|
|
|
|
317
|
|
|
Debt due within one year
|
|
|
2,040
|
|
|
|
664
|
|
|
Other current liabilities
|
|
|
705
|
|
|
|
806
|
|
|
Total current liabilities
|
|
|
3,789
|
|
|
|
2,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
10,924
|
|
|
|
12,893
|
|
|
Deferred income taxes, net
|
|
|
673
|
|
|
|
666
|
|
|
Other long-term liabilities
|
|
|
1,753
|
|
|
|
1,755
|
|
|
Total long-term liabilities
|
|
|
13,350
|
|
|
|
15,314
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 15.00 par value, 502,852,947 authorized, 167,617,649
contingently authorized, 335,235,298 issued and 320,004,924
outstanding at March 31, 2009 and 502,852,947 authorized,
167,617,649 contingently authorized, 335,235,298 issued and
319,262,113 outstanding at December 31, 2008
|
|
|
4,455
|
|
|
|
4,444
|
|
|
Additional paid-in capital
|
|
|
7,344
|
|
|
|
7,313
|
|
|
Accumulated other comprehensive loss
|
|
|
(448
|
)
|
|
|
(420
|
)
|
|
Retained earnings
|
|
|
6,769
|
|
|
|
5,827
|
|
|
Total controlling interest shareholders’ equity
|
|
|
18,120
|
|
|
|
17,164
|
|
|
Noncontrolling interest
|
|
|
-
|
|
|
|
3
|
|
|
Total equity
|
|
|
18,120
|
|
|
|
17,167
|
|
|
Total liabilities and equity
|
|
$
|
35,259
|
|
|
$
|
35,182
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
Cash flows from operating activities
|
|
|
|
|
Net income
|
|
$
|
939
|
|
|
|
$
|
1,150
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
|
Amortization of drilling contract intangibles
|
|
|
(104
|
)
|
|
|
|
(224
|
)
|
|
Depreciation, depletion and amortization
|
|
|
355
|
|
|
|
|
367
|
|
|
Share-based compensation expense
|
|
|
19
|
|
|
|
|
22
|
|
|
Gain from disposal of assets, net
|
|
|
(4
|
)
|
|
|
|
(3
|
)
|
|
Impairment loss
|
|
|
221
|
|
|
|
|
-
|
|
|
Amortization of debt issue costs, discounts and premiums, net
|
|
|
52
|
|
|
|
|
41
|
|
|
Deferred revenue, net
|
|
|
(6
|
)
|
|
|
|
18
|
|
|
Deferred expenses, net
|
|
|
2
|
|
|
|
|
16
|
|
|
Deferred income taxes
|
|
|
6
|
|
|
|
|
(25
|
)
|
|
Other, net
|
|
|
11
|
|
|
|
|
1
|
|
|
Changes in operating assets and liabilities
|
|
|
(50
|
)
|
|
|
|
119
|
|
|
Net cash provided by operating activities
|
|
|
1,441
|
|
|
|
|
1,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(708
|
)
|
|
|
|
(769
|
)
|
|
Proceeds from disposal of assets, net
|
|
|
8
|
|
|
|
|
254
|
|
|
Proceeds from distributions from short-term investments
|
|
|
221
|
|
|
|
|
-
|
|
|
Joint ventures and other investments, net
|
|
|
-
|
|
|
|
|
(3
|
)
|
|
Net cash used in investing activities
|
|
|
(479
|
)
|
|
|
|
(518
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
Change in short-term borrowings, net
|
|
|
(24
|
)
|
|
|
|
(4
|
)
|
|
Proceeds from debt
|
|
|
88
|
|
|
|
|
1,976
|
|
|
Repayments of debt
|
|
|
(600
|
)
|
|
|
|
(2,633
|
)
|
|
Payments for repurchase of convertible senior notes
|
|
|
(102
|
)
|
|
|
|
-
|
|
|
Payments for exercise of warrants, net
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
Proceeds from share-based compensation plans, net
|
|
|
17
|
|
|
|
|
27
|
|
|
Other, net
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
(623
|
)
|
|
|
|
(638
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
339
|
|
|
|
|
326
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
963
|
|
|
|
|
1,241
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,302
|
|
|
|
$
|
1,567
|
|
|
|
|
TRANSOCEAN LTD.
FLEET OPERATING STATISTICS
|
|
|
|
|
|
|
|
Operating Revenues ($ Millions)(1)
|
|
|
|
Three months ended
|
|
|
|
March 31,
2009
|
|
December 31,
2008
|
|
March 31,
2008
|
|
Contract Drilling Revenues
|
|
|
|
|
|
|
|
|
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters
|
|
$
|
702
|
|
|
$
|
673
|
|
|
$
|
608
|
|
|
Deepwater Floaters
|
|
|
413
|
|
|
|
331
|
|
|
|
325
|
|
|
Harsh Environment Floaters
|
|
|
158
|
|
|
|
164
|
|
|
|
150
|
|
|
Total High-Specification Floaters
|
|
|
1,273
|
|
|
|
1,168
|
|
|
|
1,083
|
|
|
Midwater Floaters
|
|
|
708
|
|
|
|
797
|
|
|
|
675
|
|
|
High-Specification Jackups
|
|
|
151
|
|
|
|
146
|
|
|
|
157
|
|
|
Standard Jackups
|
|
|
689
|
|
|
|
709
|
|
|
|
711
|
|
|
Other Rigs
|
|
|
13
|
|
|
|
10
|
|
|
|
6
|
|
|
Subtotal
|
|
|
2,834
|
|
|
|
2,830
|
|
|
|
2,632
|
|
|
Contract Intangible Revenue
|
|
|
104
|
|
|
|
133
|
|
|
|
224
|
|
|
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
Client Reimbursable Revenues
|
|
|
50
|
|
|
|
51
|
|
|
|
48
|
|
|
Integrated Services and Other
|
|
|
53
|
|
|
|
49
|
|
|
|
43
|
|
|
Drilling Management Services
|
|
|
70
|
|
|
|
194
|
|
|
|
139
|
|
|
Oil and Gas Properties
|
|
|
7
|
|
|
|
13
|
|
|
|
24
|
|
|
Subtotal
|
|
|
180
|
|
|
|
307
|
|
|
|
254
|
|
|
Total Company
|
|
$
|
3,118
|
|
|
$
|
3,270
|
|
|
$
|
3,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Dayrates(1)
|
|
|
|
Three months ended
|
|
|
|
March 31,
2009
|
|
December 31,
2008
|
|
March 31,
2008
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters
|
|
$
|
451,000
|
|
|
$
|
423,600
|
|
|
$
|
380,800
|
|
|
Deepwater Floaters
|
|
$
|
336,900
|
|
|
$
|
299,000
|
|
|
$
|
284,100
|
|
|
Harsh Environment Floaters
|
|
$
|
351,100
|
|
|
$
|
358,900
|
|
|
$
|
344,000
|
|
|
Total High-Specification Floaters
|
|
$
|
393,800
|
|
|
$
|
370,500
|
|
|
$
|
340,900
|
|
|
Midwater Floaters
|
|
$
|
314,700
|
|
|
$
|
329,200
|
|
|
$
|
292,300
|
|
|
High-Specification Jackups
|
|
$
|
169,500
|
|
|
$
|
169,100
|
|
|
$
|
173,800
|
|
|
Standard Jackups
|
|
$
|
156,400
|
|
|
$
|
156,100
|
|
|
$
|
146,200
|
|
|
Other Rigs
|
|
$
|
46,700
|
|
|
$
|
37,800
|
|
|
$
|
21,200
|
|
|
Total Drilling Fleet
|
|
$
|
256,500
|
|
|
$
|
251,500
|
|
|
$
|
228,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilization(1)
|
|
|
|
Three months ended
|
|
|
|
March 31,
2009
|
|
December 31,
2008
|
|
March 31,
2008
|
|
|
|
|
|
|
|
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters
|
|
96
|
%
|
|
96
|
%
|
|
98
|
%
|
|
Deepwater Floaters
|
|
85
|
%
|
|
75
|
%
|
|
79
|
%
|
|
Harsh Environment Floaters
|
|
100
|
%
|
|
100
|
%
|
|
96
|
%
|
|
Total High-Specification Floaters
|
|
92
|
%
|
|
88
|
%
|
|
90
|
%
|
|
Midwater Floaters
|
|
89
|
%
|
|
92
|
%
|
|
88
|
%
|
|
High-Specification Jackups
|
|
99
|
%
|
|
94
|
%
|
|
99
|
%
|
|
Standard Jackups
|
|
89
|
%
|
|
90
|
%
|
|
93
|
%
|
|
Other Rigs
|
|
99
|
%
|
|
99
|
%
|
|
100
|
%
|
|
Total Drilling Fleet
|
|
91
|
%
|
|
90
|
%
|
|
91
|
%
|
|
(1)
|
|
Average daily revenue is defined as contract drilling revenue earned
per revenue earning day in the period. A revenue earning day is
defined as a day for which a rig earns dayrate after commencement of
operations. Utilization is defined as the total actual number of
revenue earning days in the period as a percentage of the total
number of calendar days in the period for all drilling rigs in our
fleet.
|
|
|
|
Transocean Ltd. and Subsidiaries
|
|
Non-GAAP Financial Measures and Reconciliations
|
|
|
|
|
|
|
|
|
|
|
Operating Income Before General and Administrative Expense
|
|
to Field Operating Income
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Operating revenue
|
|
$
|
3,118
|
|
$
|
3,270
|
|
$
|
3,110
|
|
|
Operating and maintenance expense
|
|
|
1,171
|
|
|
1,408
|
|
|
1,157
|
|
|
Depreciation, depletion and amortization
|
|
|
355
|
|
|
396
|
|
|
367
|
|
|
Impairment loss
|
|
|
221
|
|
|
320
|
|
|
-
|
|
|
(Gain) loss from disposal of assets, net
|
|
|
4
|
|
|
3
|
|
|
(3
|
)
|
|
Operating income before general and administrative expense
|
|
|
1,367
|
|
|
1,143
|
|
|
1,589
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
355
|
|
|
396
|
|
|
367
|
|
|
Impairment loss
|
|
|
221
|
|
|
320
|
|
|
-
|
|
|
(Gain) loss from disposal of assets, net
|
|
|
4
|
|
|
3
|
|
|
(3
|
)
|
|
Field operating income
|
|
$
|
1,947
|
|
$
|
1,862
|
|
$
|
1,953
|
|
|
|
|
Transocean Ltd. and Subsidiaries
|
|
Supplemental Effective Tax Rate Analysis
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|
|
|
2009
|
|
2008
|
|
2008
|
|
|
|
|
|
|
(As adjusted)
|
|
Income before income taxes
|
|
$
|
1,190
|
|
|
$
|
963
|
|
|
$
|
1,368
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
|
Impairment loss
|
|
|
221
|
|
|
|
326
|
|
|
|
-
|
|
|
|
Change to estimated useful lives of certain GSF rigs
|
|
|
-
|
|
|
|
46
|
|
|
|
-
|
|
|
|
Sedco 712 bad debt provision
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
|
Inventory obsolescence provision
|
|
|
-
|
|
|
|
21
|
|
|
|
-
|
|
|
|
GSF Merger related costs
|
|
|
6
|
|
|
|
2
|
|
|
|
-
|
|
|
|
Contract termination fee - Transocean Nordic
|
|
|
-
|
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
Income from TODCO tax sharing agreement
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
Loss on retirement of debt
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted income before income taxes
|
|
|
1,419
|
|
|
|
1,360
|
|
|
|
1,368
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
251
|
|
|
|
210
|
|
|
|
218
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
|
GSF Merger related costs
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Impairment loss
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
Sedco 712 bad debt provision
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
Materials and supplies obsolescence provision
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
Changes in estimates (1)
|
|
|
(37
|
)
|
|
|
(14
|
)
|
|
|
(27
|
)
|
|
Adjusted income tax expense (2)
|
|
$
|
215
|
|
|
$
|
222
|
|
|
$
|
191
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3)
|
|
|
21.1
|
%
|
|
|
21.8
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Annual Effective Tax Rate (4)
|
|
|
15.2
|
%
|
|
|
16.3
|
%
|
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Our estimates change as we file tax returns, settle disputes with
tax authorities or become aware of other events and include changes
in deferred taxes valuation allowances on deferred taxes and other
tax liabilities.
|
|
(2)
|
|
The three months ended Dec. 31, 2008 include $28 million of
additional tax expense (benefit) reflecting the catch-up effect of
an increase (decrease) in the annual effective tax rate from the
previous quarter estimate.
|
|
(3)
|
|
Effective Tax Rate is income tax expense divided by income before
income taxes.
|
|
(4)
|
|
Annual Effective Tax Rate is income tax expense excluding various
discrete items (such as changes in estimates and tax on items
excluded from income before income taxes) divided by income before
income taxes excluding gains on sales and similar items pursuant to
Financial Accounting Standards Board Interpretation No. 18.
|
Source: Transocean Ltd.
Transocean Ltd.
Analyst Contact:
Gregory S. Panagos,
713-232-7551
or
Media Contact:
Guy A. Cantwell,
713-232-7647
|
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