Transocean (RIG) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating revenues
Contract drilling revenues	$2,441	$2,834
Contract drilling intangible revenues	33	104
Other revenues	128	180
Operating revenues	2,602	3,118
Costs and expenses
Operating and maintenance	1,196	1,171
Depreciation, depletion and amortization	401	355
General and administrative	63	56
Costs and expenses	1,660	1,582
Loss on impairment	(2)	(221)
Gain (loss) on disposal of assets, net	(14)	4
Operating income	926	1,319
Other income (expense), net
Interest income	5	1
Interest expense, net of amounts capitalized	(132)	(136)
Other, net	15	6
Total other income (expense), net	(112)	(129)
Income before income tax expense	814	1,190
Income tax expense	129	251
Net income	685	939
Net income (loss) attributable to noncontrolling interest	8	(3)
Net income attributable to controlling interest	$677	$942
Earnings per share
Basic	2.1	2.94
Diluted	2.09	2.93
Weighted average shares outstanding
Basic	321	319
Diluted	322	320

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Statement of Income and Comprehensive Income [Abstract]
Net income	$685	$939
Other comprehensive loss before income taxes
Unrecognized components of net periodic benefit cost	(10)	(39)
Recognized components of net periodic benefit cost	6	4
Unrealized loss on derivative instruments	(6)	(1)
Other comprehensive loss before income taxes	(10)	(36)
Income taxes related to other comprehensive loss	0	8
Other comprehensive loss, net of income taxes	(10)	(28)
Total comprehensive income	675	911
Total comprehensive income (loss) attributable to noncontrolling interest	1	(3)
Total comprehensive income attributable to controlling interest	$674	$914

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Assets
Cash and cash equivalents	$1,586	$1,130
Accounts receivable, net of allowance for doubtful accounts of $41 and $65 at March 31, 2010 and December 31, 2009, respectively	2,285	2,385
Materials and supplies, net of allowance for obsolescence of $64 and $66 at March 31, 2010 and December 31, 2009, respectively	464	462
Deferred income taxes, net	113	104
Assets held for sale	0	186
Other current assets	263	209
Total current assets	4,711	4,476
Property and equipment	27,604	27,383
Property and equipment of consolidated variable interest entities	2,149	1,968
Less accumulated depreciation	6,728	6,333
Property and equipment, net	23,025	23,018
Goodwill	8,132	8,134
Other assets	970	808
Total assets	36,838	36,436
Liabilities and equity
Accounts payable	746	780
Accrued income taxes	240	240
Debt due within one year	1,447	1,568
Debt of consolidated variable interest entities due within one year	82	300
Other current liabilities	787	730
Total current liabilities	3,302	3,618
Long-term debt	8,990	8,966
Long-term debt of consolidated variable interest entities	920	883
Deferred income taxes, net	713	726
Other long-term liabilities	1,707	1,684
Total long-term liabilities	12,330	12,259
Commitments and contingencies
Shares, CHF 15.00 par value, 502,852,947 authorized, 167,617,649 conditionally authorized, 335,235,298 issued at March 31, 2010 and December 31, 2009; 320,950,624 and 321,223,882 outstanding at March 31, 2010 and December 31, 2009, respectively	4,478	4,472
Additional paid-in capital	7,433	7,407
Retained earnings	9,685	9,008
Accumulated other comprehensive loss	(338)	(335)
Treasury shares, at cost, 717,000 and none held at March 31, 2010 and December 31, 2009, respectively	(60)	0
Total controlling interest shareholders' equity	21,198	20,552
Noncontrolling interest	8	7
Total equity	21,206	20,559
Total liabilities and equity	$36,838	$36,436

PARENTHETICAL DATA TO THE CONDE

PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Assets
Accounts receivable, allowance for doubtful accounts	$41	$65
Materials and supplies, allowance for obsolescence	$64	$66
Liabilities and equity
Shares, par value CHF per share	15	15
Shares, authorized	502,852,947	502,852,947
Shares, conditionally authorized	167,617,649	167,617,649
Shares, issued	335,235,298	335,235,298
Shares, outstanding	320,950,624	321,223,882
Treasury shares, at cost	717,000	0

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (USD $)
In Millions	Total controlling interest shareholders' equity [Member]	Shares [Member]	Additional paid-in capital [Member]	Retained earnings (accumulated deficit) [Member]	Accumulated other comprehensive loss [Member]	Treasury Stock [Member]	Total noncontrolling interest [Member]	Total
Balance, beginning of period (in shares) at Dec. 31, 2008		319
Balance, beginning of period at Dec. 31, 2008	$17,164	$4,444	$7,313	$5,827	($420)	$0	$3	$17,167
Other comprehensive loss attributable to controlling interest					(28)			(28)
Net income attributable to controlling interest				942				939
Total comprehensive income attributable to controlling interest	914						(3)	911
Share-based compensation expense	19		19					19
Issuance of shares under share-based compensation plans	17	11	6					17
Issuance of shares under share-based compensation plans (in shares)		1
Purchases of treasury shares	0					0		0
Purchases of treasury shares (in shares)		0
Repurchase of convertible notes	6		6					6
Other, net	0		0					0
Balance, end of period at Mar. 31, 2009	18,120	4,455	7,344	6,769	(448)	0	0	18,120
Balance Balance, end of period (in shares) at Mar. 31, 2009		320
Balance, beginning of period (in shares) at Dec. 31, 2009		321
Balance, beginning of period at Dec. 31, 2009	20,552	4,472	7,407	9,008	(335)	0	7	20,559
Other comprehensive loss attributable to controlling interest					(3)			(10)
Net income attributable to controlling interest				677				685
Total comprehensive income attributable to controlling interest	674						1	675
Share-based compensation expense	35		35					35
Issuance of shares under share-based compensation plans	(4)	6	(10)					(4)
Issuance of shares under share-based compensation plans (in shares)		1
Purchases of treasury shares	(60)					(60)		(60)
Purchases of treasury shares (in shares)		(1)
Repurchase of convertible notes	0		0					0
Other, net	1		1					1
Balance, end of period at Mar. 31, 2010	$21,198	$4,478	$7,433	$9,685	($338)	($60)	$8	$21,206
Balance Balance, end of period (in shares) at Mar. 31, 2010		321

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$685	$939
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of drilling contract intangibles	(33)	(104)
Depreciation, depletion and amortization	401	355
Share-based compensation expense	35	19
(Gain) loss on disposal of assets, net	14	(4)
Loss on impairment	2	221
Amortization of debt issue costs, discounts and premiums, net	49	52
Deferred income taxes	(22)	6
Other, net	3	11
Deferred revenue, net	151	(6)
Deferred expenses, net	(14)	2
Changes in operating assets and liabilities	(99)	(50)
Net cash provided by operating activities	1,172	1,441
Cash flows from investing activities
Capital expenditures	(379)	(708)
Proceeds from disposal of assets, net	41	8
Proceeds from distributions from short-term investments	5	221
Joint ventures and other investments, net	10	0
Net cash used in investing activities	(323)	(479)
Cash flows from financing activities
Change in short-term borrowings, net	(131)	(24)
Proceeds from debt	54	88
Repayments of debt	(253)	(600)
Repurchases of convertible senior notes	0	(102)
Purchases of treasury shares	(60)	0
Proceeds from (taxes paid for) share-based compensation plans, net	(4)	17
Other, net	1	(2)
Net cash used in financing activities	(393)	(623)
Net increase in cash and cash equivalents	456	339
Cash and cash equivalents at beginning of period	1,130	963
Cash and cash equivalents at end of period	$1,586	$1,302

Nature of Business

Nature of Business
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Nature of Business	Note 1Nature of Business TransoceanLtd. (together with its subsidiaries and predecessors, unless the context requires otherwise, Transocean, the Company, we, us or our) is a leading international provider of offshore contract drilling services for oil and gas wells.Our mobile offshore drilling fleet is considered one of the most modern and versatile fleets in the world.Specializing in technically demanding sectors of the offshore drilling business with a particular focus on deepwater and harsh environment drilling services, we contract our drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells.At March31, 2010, we owned, had partial ownership interests in or operated 140mobile offshore drilling units.As of this date, our fleet consisted of 46High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh Environment semisubmersibles and drillships), 26Midwater Floaters, 10High-Specification Jackups, 55Standard Jackups and threeOther Rigs (see Note 15Subsequent Events).We also havethree Ultra-Deepwater Floaters under construction (see Note8Drilling Fleet Expansion and Dispositions). We also provide oil and gas drilling management services, drilling engineering and drilling project management services, and we participate in oil and gas exploration and production activities.Drilling management services are provided through Applied Drilling Technology Inc., our wholly owned subsidiary, and through ADT International, a division of one of our U.K. subsidiaries (together, ADTI).ADTI conducts drilling management services primarily on either a dayrate or a completed-project, fixed-price (or turnkey) basis.Oil and gas properties consist of exploration, development and production activities performed by Challenger Minerals Inc. and Challenger Minerals (North Sea) Limited (together, CMI), our oil and gas subsidiaries.

Significant Accounting Policies

Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Significant Accounting Policies	Note2Significant Accounting Policies Basis of presentationOur accompanying condensed consolidated financial statements have been prepared without audit in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form10-Q and Article10 of RegulationS-X of the U.S. Securities and Exchange Commission (SEC).Pursuant to such rules and regulations, these financial statements do not include all disclosures required by accounting principles generally accepted in the U.S. for complete financial statements.The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods.Such adjustments are considered to be of a normal recurring nature unless otherwise identified.Operating results for the three months ended March31, 2010 are not necessarily indicative of the results that may be expected for the year ending December31, 2010 or for any future period.The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in ourannual reporton Form10-K for the year ended December31, 2009. Accounting estimatesThe preparation of financial statements in accordance with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities.On an ongoing basis, we evaluate our estimates and assumptions, including those related to our allowance for doubtful accounts, materials and supplies obsolescence, property and equipment, investments, notes receivable, goodwill and other intangible assets, income taxes, share-based compensation, defined benefit pension plans and other postretirement benefits and contingencies.We base our estimates and assumptions on historical experience and on various other factors we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources.Actual results could differ from such estimates. Fair value measurementsWe estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability.Our valuation techniques require inputs that we categorize using a three-level hierarchy as follows: (1)unadjusted quoted prices for identical assets or liabilities in active markets (Level1), (2)direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (Level2) and (3)unobservable inputs that require significant judgment for which there is little or no market data (Level3).When multiple input levels are required

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
New Accounting Pronouncements	Note 3New Accounting Pronouncements Recently Adopted Accounting Standards ConsolidationEffective January1, 2010, we adopted the accounting standards update that requires enhanced transparency of our involvement with variable interest entities, which (a)amends certain guidance for determining whether an enterprise is a variable interest entity, (b)requires a qualitative rather than a quantitative analysis to determine the primary beneficiary, and (c)requires continuous assessments of whether an enterprise is the primary beneficiary of a variable interest entity.We evaluated these requirements, particularly with regard to our interests in Transocean Pacific Drilling Inc. (TPDI) and Angola Deepwater Drilling Company Limited (ADDCL) and our adoption did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows.See Note 4Variable Interest Entities. Fair value measurements and disclosuresEffective January1, 2010, we adopted the effective provisions of the accounting standards update that clarifies existing disclosure requirements and introduces additional disclosure requirements for fair value measurements.The update requires entities to disclose the amounts of and reasons for significant transfers between Level1 and Level2, the reasons for any transfers into or out of Level3, and information about recurring Level3 measurements of purchases, sales, issuances and settlements on a gross basis.The update also clarifies that entities must provide (a)fair value measurement disclosures for each class of assets and liabilities and (b)information about both the valuation techniques and inputs used in estimating Level2 and Level3 fair value measurements.We have applied the effective provisions of this accounting standards update in preparing the disclosures in our notes to condensed consolidated financial statements and our adoption did not have a material effect on such disclosures.See Note 2Significant Accounting Policies. Subsequent eventsEffective for financial statements issued after February 2010, we adopted the accounting standards update regarding subsequent events, which clarifies that SEC filers are not required to disclose the date through which management evaluated subsequent events in the financial statements.Our adoption did not have a material effect on the disclosures contained within our notes to condensed consolidated financial statements.See Note 2Significant Accounting Policies. Recently Issued Accounting Standards Fair value measurements and disclosuresEffective January1, 2011, we will adopt the remaining provisions of the accounting standards update that clarifies existing disclosure requirements andintroduces additional disclosure requirements for fair value measurements.The update requires entities to separately disclose information about purchases, sales, issuances, and settlements in the reconciliation of recurring Level3 measurements on a gross basis.The update is effective for interim and annual periods beginning after December 15, 2010.We do not expect that our adoption will have a material effect on the disclosures contained in our notes to consolidat

Variable Interest Entities

Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Variable Interest Entities	Note 4Variable Interest Entities TPDI and ADDCL, two joint venture companies in which we hold interests, were formed to own and operate certain ultra-deepwater drillships.We have determined that each of these joint venture companies meets the criteria of a variable interest entity for accounting purposes because their equity at risk is insufficient to permit them to carry on their activities without additional subordinated financial support from us.We have also determined, in each case, that we are the primary beneficiary for accounting purposes since (a) we have the power to direct the construction, marketing, and operating activities, which are the activities that most significantly impact each entitys economic performance, and (b) we have the obligation to absorb a majority of the losses or receive a majority of the benefits that could be potentially significant to the variable interest entity.As a result, we consolidate TPDI and ADDCL in our condensed consolidated financial statements, we eliminate intercompany transactions, and we present the interests that are not owned by us as noncontrolling interest on our condensed consolidated balance sheets.The carrying amounts associated with these two joint ventures, after eliminating the effect of intercompany transactions, were as follows (inmillions): March31, 2010 December31, 2009 Assets Liabilities Net carrying amount Assets Liabilities Net carrying amount Variable interest entity TPDI $ 1,579 $ 798 $ 781 $ 1,500 $ 763 $ 737 ADDCL 775 272 503 582 482 100 Total $ 2,354 $ 1,070 $ 1,284 $ 2,082 $ 1,245 $ 837

Impairments

Impairments
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Impairments	Note5Impairments During the three months ended March31, 2010, we recognized a $2 million loss on impairment of goodwill associated with our oil and gas properties. During the three months ended March31, 2009, we determined that GSFArcticII and GSFArcticIV, both previously classified as assets held for sale, were impaired due to the global economic downturn and pressure on commodity prices, both of which have had an adverse effect on our industry.We estimated the fair values of these rigs as of the measurement date based on an exchange price that would be received for the assets in the principal or most advantageous market for the assets in an orderly transaction between market participants and considering our undertakings to the Office of Fair Trading in the U.K. (OFT) that required the sale of the rigs with certain limitations and in a limited amount of time.We based our estimates on unobservable inputs that require significant judgment, for which there is little or no market data, including non-binding price quotes from unaffiliated parties with consideration of the then-current market conditions and restrictions imposed by the OFT.As a result of our evaluation, we recognized a loss on impairment of $221million ($0.69per diluted share), which had no tax effect, for the three months ended March31, 2009.See Note8Drilling Fleet Expansion and Dispositions.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Income Taxes	Note6Income Taxes OverviewTransoceanLtd., a holding company and Swiss resident, is exempt from cantonal and communal income tax in Switzerland, but is subject to Swiss federal income tax.At the federal level, qualifying net dividend income and net capital gains on the sale of qualifying investments in subsidiaries are exempt from Swiss federal income tax.Consequently, TransoceanLtd. expects dividends from its subsidiaries and capital gains from sales of investments in its subsidiaries to be exempt from Swiss federal income tax. Tax provisionWe conduct operations through our various subsidiaries in a number of countries throughout the world, all of which have taxation regimes with varying nominal rates, deductions, credits and other tax attributes.Our provision for income taxes is based on the tax laws and rates applicable in the jurisdictions in which we operate and earn income.Consequently, there is little to no expected relationship between the provision for or benefit from income taxes and income or loss before income taxes. Our estimated annual effective tax rates for the three months ended March31, 2010 and March31, 2009 were 15.0percent and 15.2percent, respectively.These rates were based on estimated annual income before income taxes for each period after adjusting for certain items, such as impairment losses and various other discrete items. We record a valuation allowance for deferred tax assets, including those resulting from net operating losses, when it is more likely than not that we will not realize some or all of the benefit from the deferred tax assets.At March31, 2010 and December31, 2009, the valuation allowance for non-current deferred tax assets was $69million. Tax returnsWe file federal and local tax returns in several jurisdictions throughout the world.With few exceptions, we are no longer subject to examinations of our U.S. and non-U.S. tax matters for years prior to 1999.For the three months ended March31, 2010 and March31, 2009, the amount of current tax benefit recognized from the settlement of disputes with tax authorities and from the expiration of statutes of limitations was insignificant. The liabilities related to our unrecognized tax benefits, including related interest and penalties that we recognize as a component of income tax expense, were as follows (inmillions): March31, 2010 December31, 2009 Unrecognized tax benefits, excluding interest and penalties $ 460 $ 460 Interest and penalties 202 200 Unrecognized tax benefits, including interest and penalties $ 662 $ 660 Our tax returns in the other major jurisdictions in which we operate are generally subject to examination for periods ranging from three to six years.We have agreed to extensions beyond the statute of limitations in threemajor jurisdictions for up to 15years.Tax authorities in certain jurisdictions are examining our tax returns and in some cases have issued assessments.We are defending our tax positions in those jurisdictions.While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect the ultimate liability to have a material adverse effec

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Earnings Per Share	Note 7Earnings Per Share The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per share is as follows (inmillions, except per share data): Three months ended March31, 2010 2009 Basic Diluted Basic Diluted Numerator for earnings per share Net income attributable to controlling interest $ 677 $ 677 $ 942 $ 942 Undistributed net income allocable to participating securities (4 ) (3 ) (5 ) (5 ) Net income attributable to shareholders $ 673 $ 674 $ 937 $ 937 Denominator for earnings per share Weighted-average shares outstanding 321 321 319 319 Effect of stock options and other share-based awards 1 1 Weighted-average shares for per share calculation 321 322 319 320 Earnings per share $ 2.10 $ 2.09 $ 2.94 $ 2.93 Shares subject to issuance pursuant to the conversion features of the 1.625%SeriesA, 1.50%SeriesB and 1.50%SeriesC Convertible Senior Notes did not have an effect on the calculation for the periods presented.

Drilling Fleet Expansion and Di

Drilling Fleet Expansion and Dispositions
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Drilling Fleet Expansion and Dispositions	Note 8Drilling Fleet Expansion and Dispositions Drilling fleet expansion Construction work in progress, recorded in property and equipment, was $2.6billion and $3.7billion at March31, 2010 and December 31, 2009, respectively.The following table presents actual capital expenditures and other capital additions, including capitalized interest, for our remaining major construction projects (inmillions): Three months ended March31, 2010 Through December 31, 2009 Total costs Discoverer Luanda (a) $ 145 $ 535 $ 680 Discoverer India 32 541 573 Deepwater Champion(b) 31 527 558 Dhirubhai DeepwaterKG2 (c) (d) 24 641 665 Discoverer Inspiration (c) 9 667 676 Capitalized interest 28 183 211 Mobilization costs 12 19 31 Total $ 281 $ 3,113 $ 3,394 ______________________________ (a) The costs for DiscovererLuanda represent 100percent of expenditures incurred since inception.ADDCL is responsible for these costs.We hold a 65percent interest in ADDCL, and Angco Cayman Limited holds the remaining 35percent interest. (b) These costs include our initial investment in DeepwaterChampion of $109million, representing the estimated fair value of the rig at the time of our merger with GlobalSantaFe Corporation (GlobalSantaFe) in November 2007. (c) The accumulated construction costs of these rigs are no longer included in construction work in progress, as their construction or conversion projects had been completed as of March31, 2010. (d) The costs for DhirubhaiDeepwaterKG2 represent 100percent of expenditures incurred prior to our investment in the joint venture ($178million) and 100percent of expenditures incurred since our investment in the joint venture.TPDI is responsible for these costs.We hold a 50percent interest in TPDI, and Pacific Drilling Limited holds the remaining 50percent interest. During the three months ended March31, 2010, we acquired GSFExplorer, an asset formerly held under capital lease, in exchange for a cash payment terminating the capital lease obligation in the amount of $15million.See Note9Debt. DispositionsDuring the three months ended March31, 2010, we completed the sale of two Midwater Floaters, GSFArcticII and GSFArcticIV.In connection with the sale, we received net cash proceeds of $38million and non-cash proceeds in the form of two notes receivable in the aggregate amount of $165million.The notes receivable, which are secured by the drilling units, have stated interest rates of 9percent and are payable in scheduled quarterly installments of principal and interest through maturity in January 2015.We estimated the fair values of the notes receivable based on unobservable inputs that require significant judgment, for which there is little or no market data.We continue to operate GSFArcticIV under a short-term bareboat charter with the new owner of the vessel through October2010.As a result of the sale, we recognized a loss on disposal of assets for the three months ended March31, 2010 in the amount of $15million.

Debt

Debt
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Debt	Note 9Debt Our debt, net of unamortized discounts, premiums and fair value adjustments, was comprised of the following (inmillions): March31, 2010 December 31, 2009 ODL Loan Facility $ 10 $ 10 Commercial paper program (a) 150 281 6.625% Notes due April2011 (a) 169 170 5% Notes due February2013 250 247 5.25% Senior Notes due March2013 (a) 502 496 6.00% Senior Notes due March2018 (a) 997 997 7.375% Senior Notes due April2018 (a) 247 247 Capital lease obligation due July2026 15 8% Debentures due April2027 (a) 57 57 7.45% Notes due April2027 (a) 96 96 7% Senior Notes due June2028 312 313 Capital lease contract due August 2029 707 711 7.5% Notes due April2031 (a) 598 598 1.625% SeriesA Convertible Senior Notes due December2037(a) 1,271 1,261 1.50% SeriesB Convertible Senior Notes due December2037 (a) 2,075 2,057 1.50% SeriesC Convertible Senior Notes due December2037 (a) 1,997 1,979 6.80% Senior Notes due March2038 (a) 999 999 Total debt 10,437 10,534 Less debt due within one year ODL Loan Facility 10 10 Commercial paper program (a) 150 281 Capital lease contract due August 2029 16 16 1.625% Series A Convertible Senior Notes due December2037 (a) 1,271 1,261 Total debt due within one year 1,447 1,568 Total long-term debt $ 8,990 $ 8,966 ______________________________ (a) TransoceanInc., a wholly owned subsidiary of TransoceanLtd., is the issuer of the notes and debentures, which have been guaranteed by TransoceanLtd.TransoceanLtd. has also guaranteed borrowings under the commercial paper program and the Five-Year Revolving Credit Facility.TransoceanLtd. has no independent assets or operations, its guarantee of debt securities of TransoceanInc. is full and unconditional and its only other subsidiaries not owned indirectly through TransoceanInc. are minor.TransoceanLtd. is not subject to any significant restrictions on its ability to obtain funds from its consolidated subsidiaries or entities accounted for under the equity method by dividends, loans or return of capital distributions. The debt of consolidated variable interest entities after the elimination of intercompany balances was comprised of the following (inmillions): March31, 2010 December31, 2009 TPDI Credit Facilities due March2015 $ 613 $ 581 ADDCL Credit Facilities due June2017 241 454 TPDI Notes due October2019 148 148 Total debt of consolidated variable interest entities 1,002 1,183 Less debt of consolidated variable interest entities due within one year TPDI Credit Facilities due March2015 70 52 ADDCL Credit Facilities due June2017 12 248 Total debt of consolidated variable interest entities due within one year 82 300 Total long-term debt of consolidated variable i

Derivatives and Hedging

Derivatives and Hedging
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Derivatives and Hedging	Note10Derivatives and Hedging Cash flow hedgesTPDI has entered into interest rate swaps, which have been designated and have qualified as a cash flow hedge, to reduce the variability of cash interest payments associated with the variable-rate borrowings under the TPDI Credit Facilities.The notional value increased proportionately with the projected borrowings under the TPDI Credit Facilities to a maximum amount of $1.190billion, of which $595million is attributable to one of our subsidiaries.As of March31, 2010, the aggregate notional value had increased to the maximum amount and the intercompany balances attributable to our subsidiary have been eliminated in consolidation.Under the interest rate swaps, TPDI receives interest at three-month London Interbank Offered Rate and pays interest at a weighted-average fixed rate of 2.3percent during the expected term of the TPDI Credit Facilities.At March31, 2010, the interest rate swaps represented a liability measured at fair value of $2million, recorded in other long-term liabilities, with a corresponding increase to accumulated other comprehensive loss.The weighted-average variable interest rate on March31, 2010 was 3.9percent.At December31, 2009, the interest rate swaps represented an asset measured at a fair value of $5million, recorded in other assets, and a liability measured at fair value of less than $1million, recorded in other long-term liabilities, with a corresponding decrease to accumulated other comprehensive loss on our consolidated balance sheet.The ineffective portion of the cash flow hedges was less than $1million recorded in interest expense for the three months ended March31, 2010.There was no ineffectiveness for the three months ended March31, 2009. Fair value hedgesTwo of our wholly owned subsidiaries have entered into interest rate swaps, which are designated and have qualified as fair value hedges, to reduce our exposure to changes in the fair values of the 5.25%Senior Notes and the 5.00%Notes.The interest rate swaps have aggregate notional values of $500million and $250million, respectively, equal to the face values of the hedged instruments and have stated maturities that coincide with those of the hedged instruments.We have determined that the hedging relationships qualify for, and we have applied, the shortcut method of accounting, under which the interest rate swaps are considered to have no ineffectiveness and no ongoing assessment of effectiveness is required.At March31, 2010, the interest rate swaps represented an asset measured at fair value of $5million, recorded in other assets, with a corresponding increase to the carrying amount of the underlying debt instrument.The weighted-average variable interest rate on March31, 2010 was 3.4percent.At December31, 2009, the interest rate swaps represented a liability measured at a fair value of $4million, recorded in other long-term liabilities, with a corresponding decrease to the carrying amount of the underlying debt instrument.

Postemployment Benefit Plans

Postemployment Benefit Plans
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Postemployment Benefit Plans	Note11Postemployment Benefit Plans Defined benefit pension plans and other postretirement benefit plans OverviewWe have several defined benefit pension plans, both funded and unfunded, covering substantially all of our U.S. employees.We also have various defined benefit plans in the U.K., Norway, Nigeria, Egypt and Indonesia that cover our employees in those areas, and we have certain frozen plans assumed in connection with our mergers that cover certain of our current employees and former employees and directors of our predecessors. Net periodic benefit costsNet periodic benefit costs, before tax, included the following components (inmillions): Three months ended March31, 2010 Three months ended March31, 2009 U.S. Plans Non-U.S. Plans OPEB Plans Total U.S. Plans Non-U.S. Plans OPEB Plans Total Service cost $ 10 $ 6 $ $ 16 $ 11 $ 4 $ $ 15 Interest cost 14 5 1 20 12 4 1 17 Expected return on plan assets (14 ) (5 ) (19 ) (13 ) (3 ) (16 ) Settlements and curtailments 1 1 2 2 Actuarial losses, net 3 1 4 4 4 Prior service cost, net (1 ) (1 ) Net periodic benefit costs $ 13 $ 8 $ $ 21 $ 16 $ 5 $ 1 $ 22 Funding contributionsDuring the three months ended March31, 2010, we contributed an aggregate amount of $8million to the U.S. Plans, the non-U.S. Plans and the other postretirement employee benefits plans, which was funded from our cash flows from operations. Severance plan Following our merger with GlobalSantaFe in 2007, we established a plan to consolidate operations and administrative functions.As of March31, 2010, we had identified 377employees who had been involuntarily terminated pursuant to this plan.We recognized $5million and $6million of severance expense in the three months ended March31, 2010 and March31, 2009, respectively, in either operating and maintenance expense or general and administrative expense.The liability associated with the severance plan, recorded in other current liabilities, was $14million and $17million at March31, 2010 and December31, 2009, respectively.Since the severance plans inception in 2007, we have paid $61million in termination benefits under the plan, including $8million and $4million paid during the three months ended March31, 2010 and March31, 2009, respectively.No additional amounts will be recognized under the severance plan, which expired during the three months ended March31, 2010.

Contingencies

Contingencies
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Contingencies	Note12Contingencies Legal proceedings Asbestos litigationIn 2004, several of our subsidiaries were named, along with numerous other unaffiliated defendants, in 21complaints filed on behalf of 769plaintiffs in the Circuit Courts of the State of Mississippi and which claimed injuries arising out of exposure to asbestos allegedly contained in drilling mud during these plaintiffs employment in drilling activities between 1965 and 1986.A Special Master, appointed to administer these cases pre-trial, subsequently required that each individual plaintiff file a separate lawsuit, and the original 21multi-plaintiff complaints were then dismissed by the Circuit Courts.The amended complaints resulted in one of our subsidiaries being named as a direct defendant in seven cases.We have or may have an indirect interest in an additional 17cases.The complaints generally allege that the defendants used or manufactured asbestos-containing products in connection with drilling operations and have included allegations of negligence, products liability, strict liability and claims allowed under the Jones Act and general maritime law.The plaintiffs generally seek awards of unspecified compensatory and punitive damages.In each of these cases, the complaints have named other unaffiliated defendant companies, including companies that allegedly manufactured the drilling-related products that contained asbestos.None of the cases in which one of our subsidiaries is a named defendant has been scheduled for trial in 2010, and the preliminary information available on these claims is not sufficient to determine if there is an identifiable period for alleged exposure to asbestos, whether any asbestos exposure in fact occurred, the vessels potentially involved in the claims, or the basis on which the plaintiffs would support claims that their injuries were related to exposure to asbestos.However, the initial evidence available would suggest that we would have significant defenses to liability and damages.In 2009, two cases that were part of the original 2004 multi-plaintiff suits went to trial in Mississippi against unaffiliated defendant companies which allegedly manufactured drilling-related products containing asbestos.We were not a defendant in either of these cases.One of the cases resulted in a substantial jury verdict in favor of the plaintiff, and this verdict was subsequently vacated by the trial judge on the basis that the plaintiff failed to meet its burden of proof.While the courts decision is consistent with our general evaluation of the strength of these cases, it has not been reviewed on appeal.The second case resulted in a verdict completely in favor of the defendants.There have been no other trials involving any of the parties to the original 21complaints.We intend to defend these lawsuits vigorously, although there can be no assurance as to the ultimate outcome.We historically have maintained broad liability insurance, although we are not certain whether insurance will cover the liabilities, if any, arising out of these claims.Based on our evaluation of the exposure to date, we do not expect the liability, if any, resulting from these claims to have a mate

Equity

Equity
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Equity	Note 13Equity Share repurchase programIn May 2009, at our annual general meeting, 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 CHF3.5billion, which is equivalent to approximately U.S. $3.3billion, using an exchange rate of U.S.$1.00 to CHF1.05 as of the close of trading on March31, 2010.On February12, 2010, our board of directors authorized our management to implement the share repurchase program. During the three months ended March31, 2010, following the authorization by our board of directors, we repurchased 717,000of our shares under our share repurchase program in exchange for CHF64million, equivalent to $60million.At March31, 2010, we held 717,000treasury shares purchased under our share repurchase program, recorded at cost.See Note15Subsequent Events. Shares held by subsidiaryIn December2008, we issued 16million of our shares to one of our subsidiaries for future use to satisfy our obligations to deliver shares in connection with awards granted under our incentive plans or other rights to acquire our shares.At March31, 2010 and December31, 2009, our subsidiary had 13,567,674shares and 14,011,416shares, respectively, available for this purpose.

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Fair Value of Financial Instruments	Note 14Fair Value of Financial Instruments We estimate the fair value of each class of financial instruments, for which estimating fair value is practicable, by applying the following methods and assumptions: Cash and cash equivalentsThe carrying amount approximates fair value because of the short maturities of those instruments. Accounts receivableThe carrying amount, net of valuation allowance, approximates fair value because of the short maturities of those instruments. Short-term investmentsThe carrying amount represents the estimated fair value, measured using pricing data that are representative of quoted prices for similar instruments in active markets or identical instruments in less active markets.Our short-term investments include investments in The Reserve International Liquidity Fund Ltd. and The Reserve Primary Fund.At March31, 2010 and December31, 2009, the carrying amount of our short-term investments was $32million and $38million, respectively, recorded in other assets on our condensed consolidated balance sheets. Notes receivableThe carrying amount represents the estimated fair value, measured using unobservable inputs that require significant judgment, for which there is little or no market data.At March31, 2010, the aggregate carrying amount of our notes receivable was $130million, including $19million and $111million recorded in other current assets and other assets, respectively.We did not hold notes receivable as of December 31, 2009. DebtThe fair value of our fixed-rate debt is measured using quoted prices for identical instruments in active markets.Our variable-rate debt is included in the fair values stated below at its carrying amount since the short-term interest rates cause the face value to approximate its fair value.The TPDI Notes and Overseas Drilling Limited Loan Facility are included in the fair values stated below at their aggregate carrying amount of $158million at March31, 2010 and December31, 2009, since there is no available market price for such related-party debt.The carrying amounts and estimated fair values of our long-term debt, including debt due within one year, were as follows (inmillions): March31, 2010 December 31, 2009 Carrying amount Fair value Carrying amount Fair value Long-term debt, including current maturities $ 10,437 $ 11,047 $ 10,534 $ 11,218 Long-term debt of consolidated variable interest entities, including current maturities 1,002 1,004 1,183 1,178 Derivative instrumentsThe carrying amount of our derivative instruments represents the estimated fair value, measured using pricing data, including quoted prices and other observable market data, for the instruments.The carrying amount of our derivative instruments were $5million and $2million at March31, 2010 and $5million and $5million at December31, 2009, recorded in other assets and other long-term liabilities, respectively, on our condensed consolidated balance sheets.

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Subsequent Events	Note15Subsequent Events Share repurchase programSubsequent to March31, 2010, we repurchased 1,732,900 of our shares under our share repurchase program in exchange for an aggregate amount of CHF160million, equivalent to $150million.At May5, 2010, we held 2,449,900treasury shares, at cost. Deepwater Horizon incidentSubsequent to March31, 2010, our Ultra-Deepwater Floater DeepwaterHorizon, which had been drilling a well for its operator in the U.S. Gulf of Mexico, sank on April22, 2010 after an explosion and fire onboard the rig that began on April20, 2010.Eleven persons are missing and presumed dead and others were injured as a result of the incident.Our underwriters declared the vessel a total loss and, as of May 5, 2010, wereceived $401 million as partial payment of the expected insurance recoveries. The combined response team was unable to stem the flow of hydrocarbons from the well prior to the sinking of the rig andefforts to contain the flow of hydrocarbons are still underway.The Departments of Homeland Security and Interior have begun a joint investigation into the cause of the incident.The U.S. Coast Guard and the Minerals Management Service share jurisdiction over the investigation into the incident.In addition, various committees and subcommittees of theHouse of Representatives and the Senate of the United States have requested our participation in hearings related to the incident.We have also received a request to preserve information from the DOJ. There have also been numerous lawsuits filed related to the incident, and we expect additional lawsuits to be filed.We expect to incur significant legal fees and costs in responding to these matters.

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information [Text Block]
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 27, 2010	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	Transocean Ltd.
Entity Central Index Key	0001451505
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$23,800,000,000
Entity Common Stock, Shares Outstanding		319,933,046
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1