Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38373 | |
Entity Registrant Name | Transocean Ltd | |
Entity Incorporation, State or Country Code | V8 | |
Entity Tax Identification Number | 98-0599916 | |
Entity Address, Address Line One | Turmstrasse 30 | |
Entity Address, City or Town | Steinhausen | |
Entity Address, Country | CH | |
Entity Address, Postal Zip Code | 6312 | |
City Area Code | +41 (41) | |
Local Phone Number | 749-0500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 615,110,302 | |
Entity Central Index Key | 0001451505 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Shares | ||
Document and Entity Information | ||
Title of 12(b) Security | Shares | |
Trading Symbol | RIG | |
Security Exchange Name | NYSE | |
0.50% Exchangeable Senior Bonds due January 2023 | ||
Document and Entity Information | ||
Title of 12(b) Security | 0.50% Exchangeable Senior Bonds due 2023 | |
Trading Symbol | RIG/23 | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating revenues | ||||
Revenues | $ 773 | $ 784 | $ 2,462 | $ 2,296 |
Revenue from Contract with Customer, Product and Service [Extensible List] | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember |
Costs and expenses | ||||
Operating and maintenance | $ 470 | $ 547 | $ 1,535 | $ 1,565 |
Cost, Product and Service [Extensible List] | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember |
Depreciation and amortization | $ 190 | $ 212 | $ 592 | $ 648 |
General and administrative | 45 | 45 | 133 | 139 |
Total costs and expenses | 705 | 804 | 2,260 | 2,352 |
Loss on impairment | 583 | 597 | 584 | |
Loss on disposal of assets, net | (64) | (4) | (64) | (7) |
Operating income (loss) | 4 | (607) | (459) | (647) |
Other income (expense), net | ||||
Interest income | 6 | 11 | 19 | 33 |
Interest expense, net of amounts capitalized | (145) | (166) | (458) | (500) |
Gain (loss) on restructuring and retirement of debt | 449 | (12) | 396 | (39) |
Other, net | 21 | 3 | (23) | 34 |
Total other income (expense), net | 331 | (164) | (66) | (472) |
Income (loss) before income tax expense | 335 | (771) | (525) | (1,119) |
Income tax expense (benefit) | (24) | 54 | 4 | 83 |
Net income (loss) | 359 | (825) | (529) | (1,202) |
Net income attributable to noncontrolling interest | 1 | 2 | ||
Net income (loss) attributable to controlling interest | $ 359 | $ (825) | $ (530) | $ (1,204) |
Earnings (loss) per share | ||||
Basic (in dollars per share) | $ 0.58 | $ (1.35) | $ (0.86) | $ (1.97) |
Diluted (in dollars per share) | $ 0.51 | $ (1.35) | $ (0.86) | $ (1.97) |
Weighted-average shares outstanding | ||||
Basic (in shares) | 616 | 613 | 615 | 612 |
Diluted (in shares) | 702 | 613 | 615 | 612 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | $ 359 | $ (825) | $ (529) | $ (1,202) |
Net income attributable to noncontrolling interest | 1 | 2 | ||
Net income (loss) attributable to controlling interest | 359 | (825) | (530) | (1,204) |
Components of net periodic benefit income (costs) before reclassifications | (9) | 7 | ||
Components of net periodic benefit costs reclassified to net income (loss) | 2 | 6 | 1 | |
Other comprehensive income (loss) before income taxes | 2 | (3) | 8 | |
Other comprehensive income (loss) | 2 | (3) | 8 | |
Other comprehensive income (loss) attributable to controlling interest | 2 | (3) | 8 | |
Total comprehensive income (loss) | 361 | (825) | (532) | (1,194) |
Total comprehensive income attributable to noncontrolling interest | 1 | 2 | ||
Total comprehensive income (loss) attributable to controlling interest | $ 361 | $ (825) | $ (533) | $ (1,196) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,382 | $ 1,790 |
Accounts receivable, net of allowance of $2 at September 30, 2020 | 699 | 654 |
Materials and supplies, net of allowance of $118 and $127 at September 30, 2020 and December 31, 2019, respectively | 459 | 479 |
Restricted cash accounts and investments | 448 | 558 |
Other current assets | 187 | 159 |
Total current assets | 3,175 | 3,640 |
Property and equipment | 23,038 | 24,281 |
Less accumulated depreciation | (5,207) | (5,434) |
Property and equipment, net | 17,831 | 18,847 |
Contract intangible assets | 450 | 608 |
Deferred income taxes, net | 19 | 20 |
Other assets | 997 | 990 |
Total assets | 22,472 | 24,105 |
Liabilities and equity | ||
Accounts payable | 214 | 311 |
Accrued income taxes | 42 | 64 |
Debt due within one year | 640 | 568 |
Other current liabilities | 655 | 781 |
Total current liabilities | 1,551 | 1,724 |
Long-term debt | 7,794 | 8,693 |
Deferred income taxes, net | 294 | 266 |
Other long-term liabilities | 1,430 | 1,555 |
Total long-term liabilities | 9,518 | 10,514 |
Commitments and contingencies | ||
Shares, CHF 0.10 par value, 824,648,925 authorized, 142,365,398 conditionally authorized, 639,674,414 issued and 614,861,972 outstanding at September 30, 2020, and 639,674,422 authorized, 142,365,398 conditionally authorized, 617,970,525 issued and 611,871,374 outstanding at December 31, 2019 | 60 | 59 |
Additional paid-in capital | 13,493 | 13,424 |
Accumulated deficit | (1,829) | (1,297) |
Accumulated other comprehensive loss | (327) | (324) |
Total controlling interest shareholders' equity | 11,397 | 11,862 |
Noncontrolling interest | 6 | 5 |
Total equity | 11,403 | 11,867 |
Total liabilities and equity | $ 22,472 | $ 24,105 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Sep. 30, 2020USD ($)shares | Sep. 30, 2020SFr / shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019SFr / shares |
CONSOLIDATED BALANCE SHEETS | ||||
Allowance for doubtful accounts | $ | $ 2 | |||
Materials and supplies, allowance for obsolescence | $ | $ 118 | $ 127 | ||
Shares, CHF par value (in Swiss francs per share) | SFr / shares | SFr 0.10 | SFr 0.10 | ||
Shares, authorized | 824,648,925 | 639,674,422 | ||
Shares, conditionally authorized | 142,365,398 | 142,365,398 | ||
Shares, issued | 639,674,414 | 617,970,525 | ||
Shares, outstanding | 614,861,972 | 611,871,374 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total controlling interest shareholders' equity | Shares | Additional paid-in capital | Retained earnings (accumulated deficit)Period of Adoption, Adjustment | Retained earnings (accumulated deficit) | Accumulated other comprehensive lossPeriod of Adoption, Adjustment | Accumulated other comprehensive loss | Noncontrolling interest | Total |
Balance at Dec. 31, 2018 | $ 13,107 | $ 59 | $ 13,394 | $ (67) | $ (279) | $ 7 | $ 13,114 | ||
Increase (Decrease) in Shareholders' Equity | |||||||||
Share-based compensation | 28 | 28 | 28 | ||||||
Net income (loss) attributable to controlling interest | (1,204) | (1,204) | |||||||
Other comprehensive income (loss) attributable to controlling interest | 8 | 8 | |||||||
Total comprehensive income (loss) attributable to controlling interest | (1,196) | (1,196) | |||||||
Total comprehensive income attributable to noncontrolling interest | 2 | ||||||||
Total comprehensive income (loss) | (1,194) | ||||||||
Other, net | (6) | (7) | (6) | ||||||
Balance at Sep. 30, 2019 | 11,933 | 59 | 13,415 | $ 25 | (1,246) | $ (24) | (295) | 9 | 11,942 |
Balance at Jun. 30, 2019 | 12,748 | 59 | 13,405 | (421) | (295) | 9 | 12,757 | ||
Increase (Decrease) in Shareholders' Equity | |||||||||
Share-based compensation | 9 | 9 | 9 | ||||||
Net income (loss) attributable to controlling interest | (825) | (825) | |||||||
Total comprehensive income (loss) attributable to controlling interest | (825) | (825) | |||||||
Total comprehensive income (loss) | (825) | ||||||||
Other, net | 1 | 1 | 1 | ||||||
Balance at Sep. 30, 2019 | 11,933 | 59 | 13,415 | 25 | (1,246) | $ (24) | (295) | 9 | 11,942 |
Balance at Dec. 31, 2019 | 11,862 | 59 | 13,424 | (1,297) | (324) | 5 | 11,867 | ||
Increase (Decrease) in Shareholders' Equity | |||||||||
Issuance of shares under share-based compensation plans | 1 | ||||||||
Share-based compensation | 24 | 24 | 24 | ||||||
Equity component of convertible debt instruments | 46 | 46 | 46 | ||||||
Net income (loss) attributable to controlling interest | (530) | (530) | |||||||
Other comprehensive income (loss) attributable to controlling interest | (3) | (3) | |||||||
Total comprehensive income (loss) attributable to controlling interest | (533) | (533) | |||||||
Total comprehensive income attributable to noncontrolling interest | 1 | ||||||||
Total comprehensive income (loss) | (532) | ||||||||
Other, net | (2) | (1) | (2) | ||||||
Balance at Sep. 30, 2020 | 11,397 | 60 | 13,493 | (2) | (1,829) | (327) | 6 | 11,403 | |
Balance at Jun. 30, 2020 | 10,981 | 60 | 13,438 | (2,188) | (329) | 6 | 10,987 | ||
Increase (Decrease) in Shareholders' Equity | |||||||||
Share-based compensation | 9 | 9 | 9 | ||||||
Equity component of convertible debt instruments | 46 | 46 | 46 | ||||||
Net income (loss) attributable to controlling interest | 359 | 359 | |||||||
Other comprehensive income (loss) attributable to controlling interest | 2 | 2 | |||||||
Total comprehensive income (loss) attributable to controlling interest | 361 | 361 | |||||||
Total comprehensive income (loss) | 361 | ||||||||
Balance at Sep. 30, 2020 | $ 11,397 | $ 60 | $ 13,493 | $ (2) | $ (1,829) | $ (327) | $ 6 | $ 11,403 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (825) | $ (529) | $ (1,202) |
Adjustments to reconcile to net cash provided by operating activities: | |||
Contract intangible asset amortization | 158 | 140 | |
Depreciation and amortization | 212 | 592 | 648 |
Share-based compensation expense | 24 | 28 | |
Loss on impairment | 583 | 597 | 584 |
Loss on impairment of investment in unconsolidated affiliate | 59 | ||
Loss on disposal of assets, net | 4 | 64 | 7 |
Gain (loss) on restructuring and retirement of debt | 12 | (396) | 39 |
Deferred income tax expense | 28 | 139 | |
Other, net | 42 | 28 | |
Changes in deferred revenues, net | (45) | 19 | |
Changes in deferred costs, net | 10 | (21) | |
Changes in other operating assets and liabilities, net | (484) | (216) | |
Net cash provided by operating activities | 120 | 193 | |
Cash flows from investing activities | |||
Capital expenditures | (218) | (259) | |
Proceeds from disposal of assets, net | 15 | 52 | |
Investments in unconsolidated affiliates | (17) | (77) | |
Proceeds from maturities of unrestricted and restricted investments | 123 | ||
Other, net | 3 | ||
Net cash used in investing activities | (220) | (158) | |
Cash flows from financing activities | |||
Proceeds from issuance of debt, net of discounts and issue costs | 743 | 1,056 | |
Repayments of debt | (1,135) | (1,189) | |
Other, net | (27) | (34) | |
Net cash used in financing activities | (419) | (167) | |
Net decrease in unrestricted and restricted cash and cash equivalents | (519) | (132) | |
Unrestricted and restricted cash and cash equivalents, beginning of period | 2,349 | 2,589 | |
Unrestricted and restricted cash and cash equivalents, end of period | $ 2,457 | $ 1,830 | $ 2,457 |
Business
Business | 9 Months Ended |
Sep. 30, 2020 | |
Business | |
Business | Note 1—Business Transocean Ltd. (together with its subsidiaries and predecessors, unless the context requires otherwise, “Transocean,” “we,” “us” or “our”) is a leading international provider of offshore contract drilling services for oil and gas wells. We specialize in technically demanding sectors of the offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services. Our mobile offshore drilling fleet is considered one of the most versatile fleets in the world. We contract our drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells. As of September 30, 2020, we owned or had partial ownership interests in and operated a fleet of 38 mobile offshore drilling units, including 27 ultra-deepwater floaters and 11 harsh environment floaters. As of September 30, 2020, we were constructing two ultra-deepwater drillships. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Presentation Form 10-K filed on February 18, 2020 Accounting estimates Fair value measurements |
Accounting Standards Update
Accounting Standards Update | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update | |
Accounting Standards Update | Note 3—Accounting Standards Update Recently adopted accounting standards Financial instruments – credit losses |
Unconsolidated Affiliates
Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2020 | |
Unconsolidated Affiliates | |
Unconsolidated Affiliates | Note 4—Unconsolidated Affiliates Investments Transocean Norge . made an aggregate cash contribution of $6 million and $74 million, respectively, to Orion. We expect to make an additional $33 million cash contribution to Orion in the six months ending June 30, 2021. In the nine months ended September 30, 2020, we recognized a loss of $59 million, which had no tax effect, recorded in other, net, associated with the impairment of our investment in Orion upon determination that the carrying amount of our equity-method investment exceeded the estimated fair value and that the impairment was other than temporary. We estimated the fair value of our investment using the income method, which required us to use significant unobservable inputs, representative of a Level 3 fair value measurement, including applying an assumed discount rate of 12 percent and making assumptions about the future performance of the investment, including future demand and supply for harsh environment floaters, rig utilization, revenue efficiency and dayrates. At September 30, 2020 and December 31, 2019, the aggregate carrying amount of our investment in Orion was $103 million and $164 million, respectively, recorded in other assets. Related party transactions Transocean Norge Transocean Norge |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenues | |
Revenues | Note 5—Revenues Overview In June 2020, we entered into a settlement and mutual release agreement with a customer, which provided for the final settlement of disputes related to performance obligations satisfied in prior periods. In connection with the settlement, among other things, our customer agreed to pay us $185 million in four equal installments through January 15, 2023. In the nine months ended September 30, 2020, we recognized revenues of $177 million, representing the discounted value of the future payments, and recorded corresponding accounts receivable and other assets of $89 million and $88 million, respectively, net of imputed interest, which we will recognize in interest income over the scheduled payment period. In the nine months ended September 30, 2019, we recognized revenues of $10 million, recognized on a cash basis, for performance obligations satisfied for another customer in prior periods. Disaggregation Three months ended September 30, 2020 Three months ended September 30, 2019 U.S. Norway Brazil Other Total U.S. Norway Brazil Other Total Ultra-deepwater floaters $ 295 $ — $ 60 $ 135 $ 490 $ 317 $ — $ 27 $ 149 $ 493 Harsh environment floaters — 233 — 50 283 4 200 — 77 281 Deepwater floaters — — — — — — — — — — Midwater floaters — — — — — — — — 10 10 Total revenues $ 295 $ 233 $ 60 $ 185 $ 773 $ 321 $ 200 $ 27 $ 236 $ 784 Nine months ended September 30, 2020 Nine months ended September 30, 2019 U.S. Norway Brazil Other Total U.S. Norway Brazil Other Total Ultra-deepwater floaters $ 1,022 $ — $ 176 $ 456 $ 1,654 $ 940 $ — $ 81 $ 434 $ 1,455 Harsh environment floaters — 647 — 149 796 4 554 — 232 790 Deepwater floaters — — — — — — — 6 1 7 Midwater floaters — — — 12 12 — — — 44 44 Total revenues $ 1,022 $ 647 $ 176 $ 617 $ 2,462 $ 944 $ 554 $ 87 $ 711 $ 2,296 Contract liabilities September 30, December 31, 2020 2019 Deferred contract revenues, recorded in other current liabilities $ 138 $ 100 Deferred contract revenues, recorded in other long-term liabilities 346 429 Total contract liabilities $ 484 $ 529 Significant changes in contract liabilities were as follows (in millions): Nine months ended September 30, 2020 2019 Total contract liabilities, beginning of period $ 529 $ 486 Decrease due to recognition of revenues for goods and services (153) (83) Increase due to goods and services transferred over time 108 102 Total contract liabilities, end of period $ 484 $ 505 |
Drilling Fleet
Drilling Fleet | 9 Months Ended |
Sep. 30, 2020 | |
Drilling Fleet | |
Drilling Fleet | Note 6—Drilling Fleet Construction work in progress Nine months ended September 30, 2020 2019 Construction work in progress, beginning of period $ 753 $ 632 Capital expenditures Newbuild construction program 114 90 Other equipment and construction projects 104 169 Total capital expenditures 218 259 Changes in accrued capital additions (27) 32 Construction work in progress impaired — (5) Property and equipment placed into service (130) (151) Construction work in progress, end of period $ 814 $ 767 Impairments of assets held and used Impairments of assets held for sale GSF Development Driller II, Polar Pioneer Songa Dee Sedco 711, Sedco 714 Transocean 712, During the nine months ended September 30, 2019, we announced our intent to retire in an environmentally responsible way the ultra-deepwater floaters Discoverer Deep Seas, Discoverer Enterprise Discoverer Spirit We measured the impairment of the drilling units and related assets as the amount by which the carrying amount exceeded the estimated fair value less costs to sell. We estimated the fair value of the assets using significant other observable inputs, representative of Level 2 fair value measurements, including indicative market values for the drilling units and related assets to be sold for scrap value or other purposes. Dispositions Polar Pioneer Songa Dee Transocean Arctic Sedco 711 Sedco 714 Transocean 712 During the nine months ended September 30, 2019, we completed the sale of the ultra-deepwater floaters Deepwater Frontier, Deepwater Millennium Ocean Rig Paros Eirik Raude Jack Bates Transocean 706 Actinia Songa Delta Assets held for sale GSF Development Driller II, |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt | Note 7—Debt Overview Outstanding debt Principal amount Carrying amount September 30, December 31, September 30, December 31, 2020 2019 2020 2019 6.50% Senior Notes due November 2020 $ 191 $ 206 $ 191 $ 206 6.375% Senior Notes due December 2021 116 222 116 221 5.52% Senior Secured Notes due May 2022 134 200 133 198 3.80% Senior Notes due October 2022 37 190 37 189 0.50% Exchangeable Senior Bonds due January 2023 463 863 462 862 5.375% Senior Secured Notes due May 2023 504 525 498 518 9.00% Senior Notes due July 2023 — 714 — 701 5.875% Senior Secured Notes due January 2024 585 667 576 656 7.75% Senior Secured Notes due October 2024 390 420 383 412 6.25% Senior Secured Notes due December 2024 406 437 400 430 6.125% Senior Secured Notes due August 2025 468 534 460 525 7.25% Senior Notes due November 2025 543 750 535 737 7.50% Senior Notes due January 2026 569 750 565 743 2.50% Senior Guaranteed Exchangeable Bonds due January 2027 238 — 277 — 11.50% Senior Guaranteed Notes due January 2027 687 — 1,139 — 6.875% Senior Secured Notes due February 2027 550 550 542 541 8.00% Senior Notes due February 2027 612 — 606 — 7.45% Notes due April 2027 52 88 51 86 8.00% Debentures due April 2027 22 57 22 57 7.00% Notes due June 2028 261 300 266 306 7.50% Notes due April 2031 396 588 394 585 6.80% Senior Notes due March 2038 610 1,000 605 991 7.35% Senior Notes due December 2041 177 300 176 297 Total debt 8,011 9,361 8,434 9,261 Less debt due within one year 6.50% Senior Notes due November 2020 191 206 191 206 5.52% Senior Secured Notes due May 2022 92 88 91 87 5.375% Senior Secured Notes due May 2023 31 16 29 14 5.875% Senior Secured Notes due January 2024 83 83 80 79 7.75% Senior Secured Notes due October 2024 60 60 58 58 6.25% Senior Secured Notes due December 2024 62 62 60 60 6.125% Senior Secured Notes due August 2025 66 66 64 64 2.50% Senior Guaranteed Exchangeable Bonds due January 2027 — — 6 — 11.50% Senior Guaranteed Notes due January 2027 — — 61 — Total debt due within one year 585 581 640 568 Total long-term debt $ 7,426 $ 8,780 $ 7,794 $ 8,693 Scheduled maturities Principal Other installments installments Total Twelve months ending September 30, 2021 $ 585 $ 67 $ 652 2022 561 76 637 2023 1,249 76 1,325 2024 608 77 685 2025 593 77 670 Thereafter 4,415 117 4,532 Total installments of debt $ 8,011 $ 490 8,501 Total debt-related balances, net (67) Total carrying amount of debt $ 8,434 Secured Credit Facility Interest rate adjustments Exchangeable bonds 97.29756 Debt issuances Guaranteed senior unsecured notes Senior guaranteed exchangeable bonds The Senior Guaranteed Exchangeable Bonds may be converted at any time prior to the close of business on the second business day immediately preceding the maturity date or redemption date at an initial exchange rate of 162.1626 $1,000 note, which implies an initial conversion price of $6.17 per share, subject to adjustment upon the occurrence of certain events. We recorded the conversion feature of the Senior Guaranteed Exchangeable Bonds, measured at its estimated fair value of $46 million, to additional paid-in capital. We estimated the fair value by employing a binomial lattice model and by using significant other observable inputs, representative of a Level 2 fair value measurement, including the expected volatility of the market price for our shares. Perestroika AS, an entity affiliated with one of our directors that beneficially owns approximately 10 percent of our shares, exchanged $356 million aggregate principal amount of the 0.50% Exchangeable Bonds for $213 million aggregate principal amount of Senior Guaranteed Exchangeable Bonds. Perestroika AS has certain registration rights related to its shares and shares that may be issued in connection with any exchange of its Senior Guaranteed Exchangeable Bonds. Priority guaranteed senior unsecured notes Senior secured notes Deepwater Poseidon On May 24, 2019, we issued $525 million aggregate principal amount of 5.375% senior secured notes due May 2023 (the 5.375% Senior Secured Notes”), and we received aggregate cash proceeds of $517 million, net of discount and issue costs. The 5.375% Senior Secured Notes are secured by the assets and earnings associated with the ultra-deepwater floaters Transocean Endurance Transocean Equinox Debt restructuring and retirement During the nine months ended September 30, 2020 and 2019, we restructured or retired certain notes as a result of redemptions, exchange offers, private exchanges, tender offers and open market repurchases. We recorded the Exchange Transactions completed in August 2020 and September 2020 under ASC 470-60, Troubled Debt Restructuring by Debtors. The aggregate principal amounts, cash payments and recognized gain or loss for such transactions were as follows (in millions): Nine months ended September 30, 2020 2019 Exchanged Redeemed Repurchased Total Tendered Repurchased Total 6.50% Senior Notes due November 2020 $ — $ — $ 15 $ 15 $ 57 $ 21 $ 78 6.375% Senior Notes due December 2021 37 — 68 105 63 41 104 3.80% Senior Notes due October 2022 136 — 16 152 190 22 212 0.50% Exchangeable Senior Bonds due January 2023 397 — 4 401 — — — 5.375% Senior Secured Notes due May 2023 — — 21 21 — — — 9.00% Senior Notes due July 2023 — 714 — 714 200 297 497 7.25% Senior Notes due November 2025 207 — — 207 — — — 7.50% Senior Notes due January 2026 181 — — 181 — — — 8.00% Senior Notes due February 2027 138 — — 138 — — — 7.45% Notes due April 2027 35 — — 35 — — — 8.00% Debentures due April 2027 35 — — 35 — — — 7.00% Notes due June 2028 39 — — 39 — — — 7.50% Notes due April 2031 192 — — 192 — — — 6.80% Senior Notes due March 2038 390 — — 390 — — — 7.35% Senior Notes due December 2041 123 — — 123 — — — Aggregate principal amount restructured or retired $ 1,910 $ 714 $ 124 $ 2,748 $ 510 $ 381 $ 891 Aggregate cash payment $ 9 $ 767 $ 91 $ 867 $ 522 $ 395 $ 917 Aggregate principal amount of debt issued in exchanges $ 925 $ — $ — $ 925 $ — $ — $ — Aggregate net gain (loss), three months ended September 30, $ 428 $ — $ 21 $ 449 $ — $ (12) $ (12) Aggregate net gain (loss), nine months ended September 30, $ 428 $ (65) $ 33 $ 396 $ (18) $ (21) $ (39) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 8—Income Taxes Tax provision and rate Tax returns Brazil tax investigations Other tax matters |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | Note 9—Earnings (Loss) Per Share The numerator and denominator used to compute earnings (loss) per share were as follows (in millions, except per share data): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator for earnings (loss) per share Net income (loss) attributable to controlling interest $ 359 $ 359 $ (825) $ (825) $ (530) $ (530) $ (1,204) $ (1,204) Effect of interest expense on convertible debt instruments — 1 — — — — — — Earnings (loss) for per share calculation $ 359 $ 360 $ (825) $ (825) $ (530) $ (530) $ (1,204) $ (1,204) Denominator for earnings (loss) per share Weighted-average shares outstanding 615 615 612 612 614 614 611 611 Effect of share-based awards 1 3 1 1 1 1 1 1 Effect of convertible debt instruments — 84 — — — — — — Weighted-average shares for per share calculation 616 702 613 613 615 615 612 612 Earnings (loss) per share $ 0.58 $ 0.51 $ (1.35) $ (1.35) $ (0.86) $ (0.86) $ (1.97) $ (1.97) In the three and nine months ended September 30, 2020, we excluded from the calculation 7.9 million and 10.8 million share-based awards, respectively, since the effect would have been antidilutive. In the three and nine months ended September 30, 2019, we excluded from the calculation 12.2 million share-based awards since the effect would have been antidilutive. In the nine months ended September 30, 2020, we excluded from the calculation 84.0 million shares issuable upon conversion of the 0.50% Exchangeable Bonds and the Senior Guaranteed Exchangeable Bonds since the effect would have been antidilutive. In the three and nine months ended September 30, 2019, we excluded from the calculation 84.0 million shares issuable upon conversion of the 0.50% Exchangeable Bonds since the effect would have been antidilutive. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Contingencies | |
Commitments | Note 10—Contingencies Legal proceedings Litigation and purported notice of default— On September 2, 2020, funds managed by, or affiliated with, Whitebox Advisors LLC (“Whitebox”), as a holder of the Existing Guaranteed Notes, filed a complaint (the “Complaint”) in the U.S. District Court for the Southern District of New York (the “Court”) related to the Internal Reorganization and the September 2020 Exchange Offers. The Complaint is based on allegations that (i) the subsidiary guarantors of the Senior Guaranteed Exchangeable Bonds and the 11.50% Senior Guaranteed Notes should have, but did not, guarantee the Existing 2025 Guaranteed Notes and the Existing 2027 Guaranteed Notes, thus violating the terms of the indentures governing such notes, and (ii) that the purported obligation to provide such guarantees should have been disclosed in the associated exchange offer memorandum. The Complaint requested a temporary restraining order and preliminary injunction (the “TRO and Injunction”) with respect to the September 2020 Exchange Offers. The lawsuit also requested that either (i) certain changes be made to the terms of the September 2020 Exchange Offers, including, among others, that corrective disclosure be made with respect to the alleged misstatements and omissions in the exchange offer memorandum, that participants be allowed to withdraw any previous tenders and that the expiration date of the September 2020 Exchange Offers be extended or (ii) in the alternative, that Whitebox be awarded its actual damages suffered as a result of such alleged improper conduct. At a hearing on September 3, 2020, the Court promptly denied the plaintiff’s TRO and Injunction request. Also on September 2, 2020, Whitebox and funds managed by, or affiliated with, Pacific Investment Management Company LLC (“PIMCO”), as holders, together, of 25.1 percent in aggregate principal amount of the Existing 2027 Guaranteed Notes, provided a purported notice of default (the “2027 Notes Notice”) to Transocean Inc. under the indenture governing the Existing 2027 Guaranteed Notes based on an allegation similar to the one underlying the claim and request for the TRO and Injunction. On September 23, 2020, we filed an answer to the Complaint with the Court and asserted counterclaims seeking a declaratory judgment that among other matters, the Internal Reorganization did not cause a default under the indenture governing the Existing 2027 Guaranteed Notes. Concurrently with our answer and counterclaims, we also submitted a motion for summary judgment seeking an expedited judgment on our request for a declaratory judgment. As of September 30, 2020, $612 million aggregate principal amount of Existing 2027 Guaranteed Notes were outstanding. If a court of competent jurisdiction were to ultimately determine that a default or event of default exists under either the indenture governing the Existing 2027 Guaranteed Notes, and that the 2027 Notes Notice was properly provided by such holders, following a 90-day grace period, upon a valid declaration of acceleration by at least 25 percent of the then outstanding aggregate principal amount of the Existing 2027 Guaranteed Notes, all unpaid principal, interest and other obligations under the indenture governing such series of notes would be due and payable, unless holders waived such acceleration or the underlying default had been cured. The resulting need to satisfy such obligation would likely place a significant adverse strain on our liquidity and our ability to obtain financing therefor. An acceleration of our obligations under the indenture governing the Existing 2027 Guaranteed Notes would result in an event of default under the Secured Credit Facility, which, upon the direction of, and if not waived by, the lenders holding at least 50 percent of the total commitments under the Secured Credit Facility could result in a termination of the commitments and acceleration of all outstanding borrowings thereunder. To the extent (i) we are required to pay Whitebox any damages, or (ii) any of our indebtedness is accelerated or is otherwise required to repaid prior to its maturity, our existing liquidity and access to future sources of liquidity may be strained, and we may not have the financial resources or access to capital to pay such award, or to repurchase or repay such indebtedness. We believe the allegations in both the Complaint and the 2027 Notes Notice are meritless, and we will continue to defend ourselves vigorously against such allegations, including any related future claims or allegations, to ensure that any such wrongful allegations, claims and notices do not result in an improper judgment, event of default or acceleration, including but not limited to, under our Secured Credit Facility. While we cannot predict or provide assurance as to the outcome of these allegations, we do not expect them to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows. See Note 12—Subsequent Events. Macondo well incident Deepwater Horizon Asbestos litigation One of our subsidiaries has been named as a defendant, along with numerous other companies, in lawsuits arising out of the subsidiary’s manufacture and sale of heat exchangers, and involvement in the construction and refurbishment of major industrial complexes alleging bodily injury or personal injury as a result of exposure to asbestos. As of September 30, 2020, the subsidiary was a defendant in approximately 211 lawsuits with a corresponding number of plaintiffs. For many of these lawsuits, we have not been provided sufficient information from the plaintiffs to determine whether all or some of the plaintiffs have claims against the subsidiary, the basis of any such claims, or the nature of their alleged injuries. The operating assets of the subsidiary were sold in 1989. In September 2018, the subsidiary and certain insurers agreed to a settlement of outstanding disputes that leaves the subsidiary with funding, including cash, annuities and coverage in place settlement, that we believe will be sufficient to respond to both the current lawsuits as well as future lawsuits of a similar nature. While we cannot predict or provide assurance as to the outcome of these matters, we do not expect the ultimate liability, if any, resulting from these claims to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows. Other matters We can provide no assurance that our beliefs or expectations as to the outcome or effect of any tax, regulatory, lawsuit or other litigation matter will prove correct and the eventual outcome of these matters could materially differ from management’s current estimates. Environmental matters We have certain potential liabilities under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state acts regulating cleanup of hazardous substances at various waste disposal sites, including those described below. CERCLA is intended to expedite the remediation of hazardous substances without regard to fault. Potentially responsible parties (“PRPs”) for each site include present and former owners and operators of, transporters to and generators of the substances at the site. It is difficult to quantify the potential cost of environmental matters and remediation obligations. Liability is strict and can be joint and several. One of our subsidiaries was named as a PRP in connection with a site located in Santa Fe Springs, California, known as the Waste Disposal, Inc. site. We and other PRPs agreed, under a participation agreement with the U.S. Environmental Protection Agency (the “EPA”) and the U.S. Department of Justice, to settle our potential liabilities by remediating the site. The remedial action for the site was completed in 2006. Our share of the ongoing operating and maintenance costs has been insignificant, and we do not expect any additional potential liabilities to be material. Resolutions of other claims by the EPA, the involved state agency or PRPs are at various stages of investigation. Nevertheless, based on available information, we do not expect the ultimate liability, if any, resulting from all environmental matters, and known potential legal claims associated therewith that are likely to be asserted, to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments | |
Financial Instruments | Note 11—Financial Instruments Overview September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair amount value amount value Cash and cash equivalents $ 1,382 $ 1,382 $ 1,790 $ 1,790 Restricted cash and cash equivalents 448 448 558 558 Long-term debt, including current maturities 8,434 3,814 9,261 8,976 We estimated the fair value of each class of financial instruments by applying the following methods and assumptions: Cash and cash equivalents Restricted cash and cash equivalents Debt |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | Note 12—Subsequent Events Litigation and purported notice of default On October 8, 2020, the Court issued an order scheduling oral argument on our motion for summary judgment on October 28, 2020. Subsequently, on October 8, 2020, Whitebox filed a cross-motion for summary judgment asking the Court to deny our motion for summary judgment and dismiss our counterclaims. As of September 30, 2020, $543 million aggregate principal amount of Existing 2025 Guaranteed Notes were outstanding. If a court of competent jurisdiction were to ultimately determine that a default or event of default exists under either the indenture governing the Existing 2025 Guaranteed Notes, and that the 2025 Notes Notice was properly provided by such holders, following a 90-day grace period, upon a valid declaration of acceleration by at least 25 percent of the then outstanding aggregate principal amount of the Existing 2025 Guaranteed Notes, all unpaid principal, interest and other obligations under the indenture governing such series of notes would be due and payable, unless holders waived such acceleration or the underlying default had been cured. While we cannot predict or provide assurance as to the outcome of these allegations, we do not expect them to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows. Tender offers |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Presentation | Presentation Form 10-K filed on February 18, 2020 |
Accounting estimates | Accounting estimates |
Fair value measurements | Fair value measurements |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues | |
Schedule of revenue disaggregation | Three months ended September 30, 2020 Three months ended September 30, 2019 U.S. Norway Brazil Other Total U.S. Norway Brazil Other Total Ultra-deepwater floaters $ 295 $ — $ 60 $ 135 $ 490 $ 317 $ — $ 27 $ 149 $ 493 Harsh environment floaters — 233 — 50 283 4 200 — 77 281 Deepwater floaters — — — — — — — — — — Midwater floaters — — — — — — — — 10 10 Total revenues $ 295 $ 233 $ 60 $ 185 $ 773 $ 321 $ 200 $ 27 $ 236 $ 784 Nine months ended September 30, 2020 Nine months ended September 30, 2019 U.S. Norway Brazil Other Total U.S. Norway Brazil Other Total Ultra-deepwater floaters $ 1,022 $ — $ 176 $ 456 $ 1,654 $ 940 $ — $ 81 $ 434 $ 1,455 Harsh environment floaters — 647 — 149 796 4 554 — 232 790 Deepwater floaters — — — — — — — 6 1 7 Midwater floaters — — — 12 12 — — — 44 44 Total revenues $ 1,022 $ 647 $ 176 $ 617 $ 2,462 $ 944 $ 554 $ 87 $ 711 $ 2,296 |
Schedule of contract balances and changes | September 30, December 31, 2020 2019 Deferred contract revenues, recorded in other current liabilities $ 138 $ 100 Deferred contract revenues, recorded in other long-term liabilities 346 429 Total contract liabilities $ 484 $ 529 Significant changes in contract liabilities were as follows (in millions): Nine months ended September 30, 2020 2019 Total contract liabilities, beginning of period $ 529 $ 486 Decrease due to recognition of revenues for goods and services (153) (83) Increase due to goods and services transferred over time 108 102 Total contract liabilities, end of period $ 484 $ 505 |
Drilling Fleet (Tables)
Drilling Fleet (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Drilling Fleet | |
Changes in our construction work in progress, including capital expenditures and capitalized interest | Nine months ended September 30, 2020 2019 Construction work in progress, beginning of period $ 753 $ 632 Capital expenditures Newbuild construction program 114 90 Other equipment and construction projects 104 169 Total capital expenditures 218 259 Changes in accrued capital additions (27) 32 Construction work in progress impaired — (5) Property and equipment placed into service (130) (151) Construction work in progress, end of period $ 814 $ 767 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt, net of unamortized discounts, premiums and fair value adjustments | Principal amount Carrying amount September 30, December 31, September 30, December 31, 2020 2019 2020 2019 6.50% Senior Notes due November 2020 $ 191 $ 206 $ 191 $ 206 6.375% Senior Notes due December 2021 116 222 116 221 5.52% Senior Secured Notes due May 2022 134 200 133 198 3.80% Senior Notes due October 2022 37 190 37 189 0.50% Exchangeable Senior Bonds due January 2023 463 863 462 862 5.375% Senior Secured Notes due May 2023 504 525 498 518 9.00% Senior Notes due July 2023 — 714 — 701 5.875% Senior Secured Notes due January 2024 585 667 576 656 7.75% Senior Secured Notes due October 2024 390 420 383 412 6.25% Senior Secured Notes due December 2024 406 437 400 430 6.125% Senior Secured Notes due August 2025 468 534 460 525 7.25% Senior Notes due November 2025 543 750 535 737 7.50% Senior Notes due January 2026 569 750 565 743 2.50% Senior Guaranteed Exchangeable Bonds due January 2027 238 — 277 — 11.50% Senior Guaranteed Notes due January 2027 687 — 1,139 — 6.875% Senior Secured Notes due February 2027 550 550 542 541 8.00% Senior Notes due February 2027 612 — 606 — 7.45% Notes due April 2027 52 88 51 86 8.00% Debentures due April 2027 22 57 22 57 7.00% Notes due June 2028 261 300 266 306 7.50% Notes due April 2031 396 588 394 585 6.80% Senior Notes due March 2038 610 1,000 605 991 7.35% Senior Notes due December 2041 177 300 176 297 Total debt 8,011 9,361 8,434 9,261 Less debt due within one year 6.50% Senior Notes due November 2020 191 206 191 206 5.52% Senior Secured Notes due May 2022 92 88 91 87 5.375% Senior Secured Notes due May 2023 31 16 29 14 5.875% Senior Secured Notes due January 2024 83 83 80 79 7.75% Senior Secured Notes due October 2024 60 60 58 58 6.25% Senior Secured Notes due December 2024 62 62 60 60 6.125% Senior Secured Notes due August 2025 66 66 64 64 2.50% Senior Guaranteed Exchangeable Bonds due January 2027 — — 6 — 11.50% Senior Guaranteed Notes due January 2027 — — 61 — Total debt due within one year 585 581 640 568 Total long-term debt $ 7,426 $ 8,780 $ 7,794 $ 8,693 |
Scheduled maturities of debt | Principal Other installments installments Total Twelve months ending September 30, 2021 $ 585 $ 67 $ 652 2022 561 76 637 2023 1,249 76 1,325 2024 608 77 685 2025 593 77 670 Thereafter 4,415 117 4,532 Total installments of debt $ 8,011 $ 490 8,501 Total debt-related balances, net (67) Total carrying amount of debt $ 8,434 |
Schedule of debt retirements | Nine months ended September 30, 2020 2019 Exchanged Redeemed Repurchased Total Tendered Repurchased Total 6.50% Senior Notes due November 2020 $ — $ — $ 15 $ 15 $ 57 $ 21 $ 78 6.375% Senior Notes due December 2021 37 — 68 105 63 41 104 3.80% Senior Notes due October 2022 136 — 16 152 190 22 212 0.50% Exchangeable Senior Bonds due January 2023 397 — 4 401 — — — 5.375% Senior Secured Notes due May 2023 — — 21 21 — — — 9.00% Senior Notes due July 2023 — 714 — 714 200 297 497 7.25% Senior Notes due November 2025 207 — — 207 — — — 7.50% Senior Notes due January 2026 181 — — 181 — — — 8.00% Senior Notes due February 2027 138 — — 138 — — — 7.45% Notes due April 2027 35 — — 35 — — — 8.00% Debentures due April 2027 35 — — 35 — — — 7.00% Notes due June 2028 39 — — 39 — — — 7.50% Notes due April 2031 192 — — 192 — — — 6.80% Senior Notes due March 2038 390 — — 390 — — — 7.35% Senior Notes due December 2041 123 — — 123 — — — Aggregate principal amount restructured or retired $ 1,910 $ 714 $ 124 $ 2,748 $ 510 $ 381 $ 891 Aggregate cash payment $ 9 $ 767 $ 91 $ 867 $ 522 $ 395 $ 917 Aggregate principal amount of debt issued in exchanges $ 925 $ — $ — $ 925 $ — $ — $ — Aggregate net gain (loss), three months ended September 30, $ 428 $ — $ 21 $ 449 $ — $ (12) $ (12) Aggregate net gain (loss), nine months ended September 30, $ 428 $ (65) $ 33 $ 396 $ (18) $ (21) $ (39) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | The numerator and denominator used to compute earnings (loss) per share were as follows (in millions, except per share data): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator for earnings (loss) per share Net income (loss) attributable to controlling interest $ 359 $ 359 $ (825) $ (825) $ (530) $ (530) $ (1,204) $ (1,204) Effect of interest expense on convertible debt instruments — 1 — — — — — — Earnings (loss) for per share calculation $ 359 $ 360 $ (825) $ (825) $ (530) $ (530) $ (1,204) $ (1,204) Denominator for earnings (loss) per share Weighted-average shares outstanding 615 615 612 612 614 614 611 611 Effect of share-based awards 1 3 1 1 1 1 1 1 Effect of convertible debt instruments — 84 — — — — — — Weighted-average shares for per share calculation 616 702 613 613 615 615 612 612 Earnings (loss) per share $ 0.58 $ 0.51 $ (1.35) $ (1.35) $ (0.86) $ (0.86) $ (1.97) $ (1.97) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments | |
Carrying amounts and fair values of the financial instruments | September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair amount value amount value Cash and cash equivalents $ 1,382 $ 1,382 $ 1,790 $ 1,790 Restricted cash and cash equivalents 448 448 558 558 Long-term debt, including current maturities 8,434 3,814 9,261 8,976 |
Business (Details)
Business (Details) | Sep. 30, 2020item |
Number of mobile offshore drilling units | 38 |
Ultra-deepwater floaters | |
Number of mobile offshore drilling units | 27 |
Number of mobile offshore drilling units under construction | 2 |
Harsh environment floaters | |
Number of mobile offshore drilling units | 11 |
Unconsolidated Affiliates (Deta
Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Investments | |||||
Loss on impairment of investment in unconsolidated affiliate | $ 59 | ||||
Investment in unconsolidated affiliate | $ 17 | $ 77 | |||
Discount rate | |||||
Investments | |||||
Investment fair value measurement | 12 | 12 | |||
Transocean Norge | |||||
Investments | |||||
Ownership percentage | 33.00% | 33.00% | 33.00% | ||
Equity method investment payment | $ 6 | 74 | |||
Loss on impairment of investment in unconsolidated affiliate | 59 | ||||
Aggregate carrying amount of equity investment | $ 103 | 103 | $ 164 | ||
Related party transaction | $ 3 | $ 41 | 35 | $ 74 | |
Payment Three | Transocean Norge | |||||
Investments | |||||
Investment in unconsolidated affiliate | $ 33 |
Revenues (Disaggregation) (Deta
Revenues (Disaggregation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Revenue | ||||||
Recognized pre-operating costs | $ 16 | $ 4 | $ 48 | $ 10 | ||
Unrecognized pre-operating costs | 23 | 23 | $ 34 | |||
Face amount of receivable | $ 185 | |||||
Performance obligations satisfied in previous periods | 177 | 10 | ||||
Contract drilling revenues | 773 | 784 | 2,462 | 2,296 | ||
Ultra-deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 490 | 493 | 1,654 | 1,455 | ||
Harsh environment floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 283 | 281 | 796 | 790 | ||
Deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 7 | |||||
Midwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 10 | 12 | 44 | |||
U.S. | ||||||
Revenue | ||||||
Contract drilling revenues | 295 | 321 | 1,022 | 944 | ||
U.S. | Ultra-deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 295 | 317 | 1,022 | 940 | ||
U.S. | Harsh environment floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 4 | 4 | ||||
Norway | ||||||
Revenue | ||||||
Contract drilling revenues | 233 | 200 | 647 | 554 | ||
Norway | Harsh environment floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 233 | 200 | 647 | 554 | ||
Brazil | ||||||
Revenue | ||||||
Contract drilling revenues | 60 | 27 | 176 | 87 | ||
Brazil | Ultra-deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 60 | 27 | 176 | 81 | ||
Brazil | Deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 6 | |||||
Other | ||||||
Revenue | ||||||
Contract drilling revenues | 185 | 236 | 617 | 711 | ||
Other | Ultra-deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 135 | 149 | 456 | 434 | ||
Other | Harsh environment floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 50 | 77 | 149 | 232 | ||
Other | Deepwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | 1 | |||||
Other | Midwater floaters | ||||||
Revenue | ||||||
Contract drilling revenues | $ 10 | 12 | $ 44 | |||
Accounts receivable | ||||||
Revenue | ||||||
Receivable net of discount | 89 | 89 | ||||
Other assets | ||||||
Revenue | ||||||
Receivable net of discount | $ 88 | $ 88 |
Revenues (Contract liabilities)
Revenues (Contract liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Contract balances | ||||
Deferred contract revenues, recorded in other current liabilities | $ 138 | $ 100 | ||
Deferred contract revenues, recorded in other long-term liabilities | 346 | 429 | ||
Total contract liabilities | $ 484 | $ 529 | $ 505 | $ 486 |
Revenues (Changes) (Details)
Revenues (Changes) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Significant changes to contract liabilities | ||
Total contract liabilities, at beginning of period | $ 529 | $ 486 |
Decrease due to recognition of revenues for goods and services | (153) | (83) |
Increase due to goods and services transferred over time | 108 | 102 |
Total contract liabilities, at end of period | $ 484 | $ 505 |
Drilling Fleet (Details)
Drilling Fleet (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest | ||
Total capital expenditures | $ 218 | $ 259 |
Construction in Progress | ||
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest | ||
Construction work in progress, at beginning of period | 753 | 632 |
Total capital expenditures | 218 | 259 |
Changes in accrued capital additions | (27) | 32 |
Construction work in progress impaired | (5) | |
Property and equipment placed into service | (130) | (151) |
Construction work in progress, at end of period | 814 | 767 |
New builds | ||
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest | ||
Total capital expenditures | 114 | 90 |
Other property and equipment | ||
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest | ||
Total capital expenditures | $ 104 | $ 169 |
Drilling Fleet (Impairment held
Drilling Fleet (Impairment held and used) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment of assets held and used | |||
Loss associated with impairment, net of tax (per share) | $ 0.90 | $ 0.96 | |
Midwater floaters | |||
Impairment of assets held and used | |||
Impairment of in use assets | $ 31 | ||
Loss associated with impairment, net of tax (per share) | $ 0.05 | ||
Loss associated with in use asset impairment, tax effect | $ 0 |
Drilling Fleet (Impairment he_2
Drilling Fleet (Impairment held for sale) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | |
Drilling Fleet | |||
Aggregate loss on impairment of assets held for sale | $ 556 | $ 578 | |
Loss associated with impairment, net of tax (per share) | $ 0.90 | $ 0.96 | |
Aggregate loss on impairment of assets held for sale, tax effect | $ 0 | $ 0 |
Drilling Fleet (Disposal) (Deta
Drilling Fleet (Disposal) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Dispositions | |||||
Number of mobile offshore drilling units | item | 38 | 38 | |||
Net cash proceeds from sale of assets | $ 15 | $ 52 | |||
Gain (loss) on the sale of assets | $ (64) | $ (4) | (64) | (7) | |
Assets held for sale, included in other current assets | $ 9 | 9 | $ 0 | ||
Assets sold, not discontinued operations | Rig sales | |||||
Dispositions | |||||
Net cash proceeds from sale of assets | 11 | 47 | |||
Gain (loss) on the sale of assets | (61) | 2 | |||
Gain (loss) on disposal of assets, tax effect | $ 0 | 0 | |||
Assets sold, not discontinued operations | Other property and equipment | |||||
Dispositions | |||||
Net cash proceeds from sale of assets | 5 | ||||
Gain (loss) on the sale of assets | $ (9) |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 11, 2020 | Jan. 17, 2020 | Dec. 31, 2019 | May 24, 2019 | Feb. 01, 2019 |
Principal amount | ||||||
Total installments of debt | $ 8,011 | $ 9,361 | ||||
Debt due within one year | 585 | 581 | ||||
Long-term debt | 7,426 | 8,780 | ||||
Carrying amount | ||||||
Total debt | 8,434 | 9,261 | ||||
Debt due within one year | 640 | 568 | ||||
Long-term debt | 7,794 | 8,693 | ||||
6.50% Senior Notes due November 2020 | ||||||
Principal amount | ||||||
Total installments of debt | 191 | 206 | ||||
Debt due within one year | 191 | 206 | ||||
Carrying amount | ||||||
Total debt | 191 | 206 | ||||
Debt due within one year | $ 191 | 206 | ||||
Debt instrument interest rate stated percentage | 6.50% | |||||
6.375% Senior Notes due December 2021 | ||||||
Principal amount | ||||||
Total installments of debt | $ 116 | 222 | ||||
Carrying amount | ||||||
Total debt | $ 116 | 221 | ||||
Debt instrument interest rate stated percentage | 6.375% | |||||
5.52% Senior Notes due May 2022 | ||||||
Principal amount | ||||||
Total installments of debt | $ 134 | 200 | ||||
Debt due within one year | 92 | 88 | ||||
Carrying amount | ||||||
Total debt | 133 | 198 | ||||
Debt due within one year | $ 91 | 87 | ||||
Debt instrument interest rate stated percentage | 5.52% | |||||
3.80% Senior Notes due October 2022 | ||||||
Principal amount | ||||||
Total installments of debt | $ 37 | 190 | ||||
Carrying amount | ||||||
Total debt | $ 37 | 189 | ||||
Debt instrument interest rate stated percentage | 3.80% | |||||
0.50% Exchangeable Senior Bonds due January 2023 | ||||||
Principal amount | ||||||
Total installments of debt | $ 463 | 863 | ||||
Carrying amount | ||||||
Total debt | $ 462 | 862 | ||||
Debt instrument interest rate stated percentage | 0.50% | |||||
5.375% Senior Secured Notes due May 2023 | ||||||
Principal amount | ||||||
Total installments of debt | $ 504 | 525 | ||||
Debt due within one year | 31 | 16 | ||||
Carrying amount | ||||||
Total debt | 498 | 518 | ||||
Debt due within one year | $ 29 | 14 | ||||
Debt instrument interest rate stated percentage | 5.375% | 5.375% | ||||
9.00% Senior Notes due July 2023 | ||||||
Principal amount | ||||||
Total installments of debt | 714 | |||||
Carrying amount | ||||||
Total debt | 701 | |||||
Debt instrument interest rate stated percentage | 9.00% | |||||
5.875% Senior Secured Notes due January 2024 | ||||||
Principal amount | ||||||
Total installments of debt | $ 585 | 667 | ||||
Debt due within one year | 83 | 83 | ||||
Carrying amount | ||||||
Total debt | 576 | 656 | ||||
Debt due within one year | $ 80 | 79 | ||||
Debt instrument interest rate stated percentage | 5.875% | |||||
7.75% Senior Secured Notes due October 2024 | ||||||
Principal amount | ||||||
Total installments of debt | $ 390 | 420 | ||||
Debt due within one year | 60 | 60 | ||||
Carrying amount | ||||||
Total debt | 383 | 412 | ||||
Debt due within one year | $ 58 | 58 | ||||
Debt instrument interest rate stated percentage | 7.75% | |||||
6.25% Senior Notes due December 2024 | ||||||
Principal amount | ||||||
Total installments of debt | $ 406 | 437 | ||||
Debt due within one year | 62 | 62 | ||||
Carrying amount | ||||||
Total debt | 400 | 430 | ||||
Debt due within one year | $ 60 | 60 | ||||
Debt instrument interest rate stated percentage | 6.25% | |||||
6.125% Senior Secured Notes due August 2025 | ||||||
Principal amount | ||||||
Total installments of debt | $ 468 | 534 | ||||
Debt due within one year | 66 | 66 | ||||
Carrying amount | ||||||
Total debt | 460 | 525 | ||||
Debt due within one year | $ 64 | 64 | ||||
Debt instrument interest rate stated percentage | 6.125% | |||||
7.25% Senior Notes due November 2025 | ||||||
Principal amount | ||||||
Total installments of debt | $ 543 | 750 | ||||
Carrying amount | ||||||
Total debt | $ 535 | 737 | ||||
Debt instrument interest rate stated percentage | 7.25% | |||||
7.50% Senior Notes due January 2026 | ||||||
Principal amount | ||||||
Total installments of debt | $ 569 | 750 | ||||
Carrying amount | ||||||
Total debt | $ 565 | 743 | ||||
Debt instrument interest rate stated percentage | 7.50% | |||||
2.50% Senior Guaranteed Exchangeable Bonds due January 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 238 | |||||
Carrying amount | ||||||
Total debt | 277 | |||||
Debt due within one year | $ 6 | |||||
Debt instrument interest rate stated percentage | 2.50% | |||||
11.50% Senior Guaranteed Notes due January 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 687 | |||||
Carrying amount | ||||||
Total debt | 1,139 | |||||
Debt due within one year | $ 61 | |||||
Debt instrument interest rate stated percentage | 11.50% | 11.50% | ||||
6.875% Senior Secured Notes due February 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 550 | 550 | ||||
Carrying amount | ||||||
Total debt | $ 542 | 541 | ||||
Debt instrument interest rate stated percentage | 6.875% | 6.875% | ||||
8.00% Senior Notes due February 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 612 | |||||
Carrying amount | ||||||
Total debt | $ 606 | |||||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | ||||
7.45% Notes due April 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 52 | 88 | ||||
Carrying amount | ||||||
Total debt | $ 51 | 86 | ||||
Debt instrument interest rate stated percentage | 7.45% | |||||
8.00% Debentures due April 2027 | ||||||
Principal amount | ||||||
Total installments of debt | $ 22 | 57 | ||||
Carrying amount | ||||||
Total debt | $ 22 | 57 | ||||
Debt instrument interest rate stated percentage | 8.00% | |||||
7.00% Notes due June 2028 | ||||||
Principal amount | ||||||
Total installments of debt | $ 261 | 300 | ||||
Carrying amount | ||||||
Total debt | $ 266 | 306 | ||||
Debt instrument interest rate stated percentage | 7.00% | |||||
7.50% Notes due April 2031 | ||||||
Principal amount | ||||||
Total installments of debt | $ 396 | 588 | ||||
Carrying amount | ||||||
Total debt | $ 394 | 585 | ||||
Debt instrument interest rate stated percentage | 7.50% | |||||
6.80% Senior Notes due March 2038 | ||||||
Principal amount | ||||||
Total installments of debt | $ 610 | 1,000 | ||||
Carrying amount | ||||||
Total debt | $ 605 | 991 | ||||
Debt instrument interest rate stated percentage | 6.80% | |||||
7.35% Senior Notes due December 2041 | ||||||
Principal amount | ||||||
Total installments of debt | $ 177 | 300 | ||||
Carrying amount | ||||||
Total debt | $ 176 | $ 297 | ||||
Debt instrument interest rate stated percentage | 7.35% |
Debt (Maturities) (Details)
Debt (Maturities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Scheduled maturities of debt | ||
Total installments of debt | $ 8,011 | $ 9,361 |
Total Installments | ||
Scheduled maturities of debt | ||
2021 | 652 | |
2022 | 637 | |
2023 | 1,325 | |
2024 | 685 | |
2025 | 670 | |
Thereafter | 4,532 | |
Total installments of debt | 8,501 | |
Total debt-related balances, net | (67) | |
Total carrying amount of debt | 8,434 | |
Principal installments | ||
Scheduled maturities of debt | ||
2021 | 585 | |
2022 | 561 | |
2023 | 1,249 | |
2024 | 608 | |
2025 | 593 | |
Thereafter | 4,415 | |
Total installments of debt | 8,011 | |
Other installments | ||
Scheduled maturities of debt | ||
2021 | 67 | |
2022 | 76 | |
2023 | 76 | |
2024 | 77 | |
2025 | 77 | |
Thereafter | 117 | |
Total installments of debt | $ 490 |
Debt (Issued) (Details)
Debt (Issued) (Details) $ / shares in Units, $ in Millions | Sep. 11, 2020USD ($) | Aug. 14, 2020USD ($)$ / shares | Jan. 17, 2020USD ($) | May 24, 2019USD ($) | Feb. 01, 2019USD ($) | Jun. 30, 2018 | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt | |||||||||||
Proceeds from issuance of debt | $ 743 | $ 1,056 | |||||||||
New debt issued in exchange | 925 | ||||||||||
Aggregate net gain (loss) | $ 449 | $ (12) | 396 | $ (39) | |||||||
Equity component of convertible debt instruments | 46 | 46 | |||||||||
Aggregate principal amount outstanding | 8,011 | 8,011 | $ 9,361 | ||||||||
Exchanged | |||||||||||
Debt | |||||||||||
New debt issued in exchange | 925 | ||||||||||
Original debt in exchange | $ 1,510 | ||||||||||
Gains (losses) on restructuring | 428 | $ 428 | |||||||||
Five-Year Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Borrowing capacity, maximum | 1,300 | ||||||||||
Commitment fee percentage at period end | 0.875% | ||||||||||
Credit facility amount outstanding | 0 | $ 0 | |||||||||
Letters of credit issued and outstanding | 30 | 30 | |||||||||
Credit facility available borrowing capacity | $ 1,300 | $ 1,300 | |||||||||
Five-Year Revolving Credit Facility | Minimum | |||||||||||
Debt | |||||||||||
Commitment fee percentage at period end | 0.375% | ||||||||||
Five-Year Revolving Credit Facility | Maximum | |||||||||||
Debt | |||||||||||
Commitment fee percentage at period end | 1.00% | ||||||||||
Five-Year Revolving Credit Facility | Adjusted LIBOR | |||||||||||
Debt | |||||||||||
Spread on variable rate basis (as a percent) | 3.375% | ||||||||||
Percentage reduction to the calculated variable rate | 1.00% | ||||||||||
Five-Year Revolving Credit Facility | Adjusted LIBOR | Minimum | |||||||||||
Debt | |||||||||||
Spread on variable rate basis (as a percent) | 2.625% | ||||||||||
Five-Year Revolving Credit Facility | Adjusted LIBOR | Maximum | |||||||||||
Debt | |||||||||||
Spread on variable rate basis (as a percent) | 3.375% | ||||||||||
6.375% Senior Notes due December 2021 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 6.375% | 6.375% | |||||||||
Interest rate, as adjusted (as a percent) | 8.375% | ||||||||||
Aggregate principal amount outstanding | $ 116 | $ 116 | 222 | ||||||||
3.80% Senior Notes due October 2022 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 3.80% | 3.80% | |||||||||
Interest rate, as adjusted (as a percent) | 5.80% | ||||||||||
Aggregate principal amount outstanding | $ 37 | $ 37 | 190 | ||||||||
7.35% Senior Notes due December 2041 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 7.35% | 7.35% | |||||||||
Interest rate, as adjusted (as a percent) | 9.35% | ||||||||||
Aggregate principal amount outstanding | $ 177 | $ 177 | 300 | ||||||||
0.50% Exchangeable Senior Bonds due January 2023 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 0.50% | 0.50% | |||||||||
Original debt in exchange | $ 397 | ||||||||||
Debt conversion ratio | 0.09729756 | ||||||||||
Debt conversion (in dollars per share) | $ / shares | $ 10.28 | $ 10.28 | |||||||||
Aggregate principal amount outstanding | $ 463 | $ 463 | 863 | ||||||||
8.00% Senior Notes due February 2027 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | 8.00% | ||||||||
Debt instrument face value | $ 750 | ||||||||||
Proceeds from issuance of debt | $ 743 | ||||||||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||||||||
Aggregate principal amount outstanding | $ 612 | $ 612 | |||||||||
2.50% Senior Guaranteed Exchangeable Bonds due January 2027 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 2.50% | 2.50% | |||||||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||||||||
New debt issued in exchange | $ 238 | ||||||||||
Gains (losses) on restructuring | $ 72 | ||||||||||
Gains (losses) on restructuring (in dollars per share) | $ / shares | $ 0.12 | $ 0.12 | |||||||||
Debt conversion ratio | 0.162163 | ||||||||||
Debt conversion (in dollars per share) | $ / shares | $ 6.17 | ||||||||||
Equity component of convertible debt instruments | $ 46 | ||||||||||
Aggregate principal amount outstanding | $ 238 | 238 | |||||||||
2.50% Senior Guaranteed Exchangeable Bonds due January 2027 | Perestroika AS | |||||||||||
Debt | |||||||||||
New debt issued in exchange | 213 | ||||||||||
Original debt in exchange | $ 356 | ||||||||||
Securities held (as a percent) | 10.00% | 10.00% | |||||||||
11.50% Senior Guaranteed Notes due January 2027 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 11.50% | 11.50% | 11.50% | ||||||||
New debt issued in exchange | $ 687 | ||||||||||
Gains (losses) on restructuring | $ 356 | $ 356 | |||||||||
Gains (losses) on restructuring (in dollars per share) | $ / shares | $ 0.58 | $ 0.58 | |||||||||
Maximum percent of original aggregate principal | 40.00% | ||||||||||
Aggregate principal amount outstanding | $ 687 | $ 687 | |||||||||
11.50% Senior Guaranteed Notes due January 2027 | Use of cash | |||||||||||
Debt | |||||||||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||||||||
11.50% Senior Guaranteed Notes due January 2027 | Use of cash from equity offering | |||||||||||
Debt | |||||||||||
Redemption price of debt instrument (as a percent) | 111.50% | ||||||||||
6.875% Senior Secured Notes due February 2027 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 6.875% | 6.875% | 6.875% | ||||||||
Debt instrument face value | $ 550 | ||||||||||
Proceeds from issuance of debt | 539 | ||||||||||
Aggregate principal amount outstanding | $ 550 | $ 550 | 550 | ||||||||
Restricted cash and cash equivalents | $ 19 | ||||||||||
5.375% Senior Secured Notes due May 2023 | |||||||||||
Debt | |||||||||||
Debt instrument interest rate stated percentage | 5.375% | 5.375% | 5.375% | ||||||||
Debt instrument face value | $ 525 | ||||||||||
Proceeds from issuance of debt | 517 | ||||||||||
Aggregate principal amount outstanding | $ 504 | $ 504 | $ 525 | ||||||||
Restricted cash and cash equivalents | $ 14 |
Debt (Settled) (Details)
Debt (Settled) (Details) - USD ($) $ in Millions | Oct. 26, 2020 | Jan. 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 24, 2019 |
Debt | |||||||
Debt retirement | $ 2,748 | $ 891 | |||||
Aggregate cash payment | 867 | 917 | |||||
Aggregate principal amount of debt issued in exchanges | 925 | ||||||
Aggregate net gain (loss) | $ 449 | $ (12) | $ 396 | (39) | |||
6.50% Senior Notes due November 2020 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 6.50% | 6.50% | |||||
Debt retirement | $ 15 | 78 | |||||
6.375% Senior Notes due December 2021 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 6.375% | 6.375% | |||||
Debt retirement | $ 105 | 104 | |||||
3.80% Senior Notes due October 2022 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 3.80% | 3.80% | |||||
Debt retirement | $ 152 | 212 | |||||
0.50% Exchangeable Senior Bonds due January 2023 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 0.50% | 0.50% | |||||
Debt retirement | $ 401 | ||||||
5.375% Senior Secured Notes due May 2023 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 5.375% | 5.375% | 5.375% | ||||
Debt retirement | $ 21 | ||||||
9.00% Senior Notes due July 2023 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 9.00% | 9.00% | |||||
Debt retirement | $ 714 | 497 | |||||
7.25% Senior Notes due November 2025 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.25% | 7.25% | |||||
Debt retirement | $ 124 | $ 207 | |||||
7.50% Senior Notes due January 2026 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.50% | 7.50% | |||||
Debt retirement | $ 181 | ||||||
8.00% Senior Notes due February 2027 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | 8.00% | ||||
Debt retirement | $ 138 | ||||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||||
7.45% Notes due April 2027 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.45% | 7.45% | |||||
Debt retirement | $ 35 | ||||||
8.00% Debentures due April 2027 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | |||||
Debt retirement | $ 35 | ||||||
7.00% Notes due June 2028 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.00% | 7.00% | |||||
Debt retirement | $ 39 | ||||||
7.50% Notes due April 2031 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.50% | 7.50% | |||||
Debt retirement | $ 192 | ||||||
6.80% Senior Notes due March 2038 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 6.80% | 6.80% | |||||
Debt retirement | $ 390 | ||||||
7.35% Senior Notes due December 2041 | |||||||
Debt | |||||||
Debt instrument interest rate stated percentage | 7.35% | 7.35% | |||||
Debt retirement | $ 123 | ||||||
Tendered | |||||||
Debt | |||||||
Debt retirement | 714 | 510 | |||||
Aggregate cash payment | 767 | 522 | |||||
Aggregate net gain (loss) | (65) | (18) | |||||
Tendered | 6.50% Senior Notes due November 2020 | |||||||
Debt | |||||||
Debt retirement | 57 | ||||||
Tendered | 6.375% Senior Notes due December 2021 | |||||||
Debt | |||||||
Debt retirement | 63 | ||||||
Tendered | 3.80% Senior Notes due October 2022 | |||||||
Debt | |||||||
Debt retirement | 190 | ||||||
Tendered | 9.00% Senior Notes due July 2023 | |||||||
Debt | |||||||
Debt retirement | 714 | 200 | |||||
Repurchased | |||||||
Debt | |||||||
Debt retirement | 124 | 381 | |||||
Aggregate cash payment | 91 | 395 | |||||
Aggregate net gain (loss) | $ 21 | $ (12) | 33 | (21) | |||
Repurchased | 6.50% Senior Notes due November 2020 | |||||||
Debt | |||||||
Debt retirement | 15 | 21 | |||||
Repurchased | 6.375% Senior Notes due December 2021 | |||||||
Debt | |||||||
Debt retirement | 68 | 41 | |||||
Repurchased | 3.80% Senior Notes due October 2022 | |||||||
Debt | |||||||
Debt retirement | 16 | 22 | |||||
Repurchased | 0.50% Exchangeable Senior Bonds due January 2023 | |||||||
Debt | |||||||
Debt retirement | 4 | ||||||
Repurchased | 5.375% Senior Secured Notes due May 2023 | |||||||
Debt | |||||||
Debt retirement | 21 | ||||||
Repurchased | 9.00% Senior Notes due July 2023 | |||||||
Debt | |||||||
Debt retirement | $ 297 | ||||||
Exchanged | |||||||
Debt | |||||||
Debt retirement | 1,910 | ||||||
Aggregate cash payment | 9 | ||||||
Aggregate principal amount of debt issued in exchanges | 925 | ||||||
Gains (losses) on restructuring | $ 428 | 428 | |||||
Exchanged | 6.375% Senior Notes due December 2021 | |||||||
Debt | |||||||
Debt retirement | 37 | ||||||
Exchanged | 3.80% Senior Notes due October 2022 | |||||||
Debt | |||||||
Debt retirement | 136 | ||||||
Exchanged | 0.50% Exchangeable Senior Bonds due January 2023 | |||||||
Debt | |||||||
Debt retirement | 397 | ||||||
Exchanged | 7.25% Senior Notes due November 2025 | |||||||
Debt | |||||||
Debt retirement | 207 | ||||||
Exchanged | 7.50% Senior Notes due January 2026 | |||||||
Debt | |||||||
Debt retirement | 181 | ||||||
Exchanged | 8.00% Senior Notes due February 2027 | |||||||
Debt | |||||||
Debt retirement | 138 | ||||||
Exchanged | 7.45% Notes due April 2027 | |||||||
Debt | |||||||
Debt retirement | 35 | ||||||
Exchanged | 8.00% Debentures due April 2027 | |||||||
Debt | |||||||
Debt retirement | 35 | ||||||
Exchanged | 7.00% Notes due June 2028 | |||||||
Debt | |||||||
Debt retirement | 39 | ||||||
Exchanged | 7.50% Notes due April 2031 | |||||||
Debt | |||||||
Debt retirement | 192 | ||||||
Exchanged | 6.80% Senior Notes due March 2038 | |||||||
Debt | |||||||
Debt retirement | 390 | ||||||
Exchanged | 7.35% Senior Notes due December 2041 | |||||||
Debt | |||||||
Debt retirement | $ 123 |
Income Taxes (Provision) (Detai
Income Taxes (Provision) (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes | ||
Effective tax rate | (0.80%) | (7.40%) |
Annual effective tax rate excluding discrete items (as a percent) | (16.40%) | (24.70%) |
Income Taxes (Tax Returns) (Det
Income Taxes (Tax Returns) (Details) - 9 months ended Sep. 30, 2020 R$ in Millions, $ in Millions | BRL (R$) | USD ($) |
Brazil | ||
Income Tax Examination | ||
Net adjustments of additional taxes, including interest and penalties | R$ 734 | $ 131 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator for loss per share, basic | ||||
Net income (loss) attributable to controlling interest | $ 359 | $ (825) | $ (530) | $ (1,204) |
Net loss attributable to controlling interest | $ 359 | $ (825) | $ (530) | $ (1,204) |
Denominator for loss per share, basic | ||||
Weighted-average shares outstanding | 615 | 612 | 614 | 611 |
Effect of share-based awards, basic | 1 | 1 | 1 | 1 |
Weighted-average shares for per share calculation, basic | 616 | 613 | 615 | 612 |
Loss per share, basic (in dollars per share) | $ 0.58 | $ (1.35) | $ (0.86) | $ (1.97) |
Numerator for loss per share, diluted | ||||
Net income (loss) attributable to controlling interest | $ 359 | $ (825) | $ (530) | $ (1,204) |
Effect of interest expense on convertible debt instruments | 1 | |||
Net loss attributable to controlling interest | $ 360 | $ (825) | $ (530) | $ (1,204) |
Denominator for loss per share, diluted | ||||
Weighted-average shares outstanding | 615 | 612 | 614 | 611 |
Effect of share-based awards, diluted | 3 | 1 | 1 | 1 |
Effect of convertible debt instruments, diluted | 84 | |||
Weighted-average shares for per share calculation, diluted | 702 | 613 | 615 | 612 |
Loss per share, diluted (in dollars per share) | $ 0.51 | $ (1.35) | $ (0.86) | $ (1.97) |
Share-based awards | ||||
Anti-dilutive securities | ||||
Securities excluded from earnings per share calculation (in shares) | 7.9 | 12.2 | 10.8 | 12.2 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020USD ($)lawsuitplaintiffsubsidiary | Sep. 11, 2020 | Sep. 02, 2020 | Dec. 31, 2019USD ($) | |
Contingencies | ||||
Total debt | $ 8,434 | $ 9,261 | ||
Restricted cash accounts and investments | $ 448 | 558 | ||
11.50% Senior Guaranteed Notes due January 2027 | ||||
Contingencies | ||||
Debt instrument interest rate stated percentage | 11.50% | 11.50% | ||
Total debt | $ 1,139 | |||
6.80% Senior Notes due March 2038 | ||||
Contingencies | ||||
Debt instrument interest rate stated percentage | 6.80% | |||
Total debt | $ 605 | 991 | ||
Whitebox | 11.50% Senior Guaranteed Notes due January 2027 | ||||
Contingencies | ||||
Debt instrument interest rate stated percentage | 11.50% | |||
Total debt | $ 612 | |||
Macondo well incident | ||||
Contingencies | ||||
Amount of fines, recoveries and civil penalties | 124 | |||
PSC Settlement Agreement | ||||
Contingencies | ||||
Cash payment into an escrow account pending approval by MDL Court | $ 125 | |||
Asbestos litigation | ||||
Contingencies | ||||
Number of subsidiaries | subsidiary | 1 | |||
Number of claims | lawsuit | 211 | |||
Asbestos litigation | LA | ||||
Contingencies | ||||
Number of claims | plaintiff | 8 | |||
PIMCO | Whitebox | 11.50% Senior Guaranteed Notes due January 2027 | ||||
Contingencies | ||||
Securities held (as a percent) | 25.10% |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Long-term debt, including current maturities | $ 8,434 | $ 9,261 |
Carrying amount | ||
Financial instruments | ||
Cash and cash equivalents | 1,382 | 1,790 |
Restricted cash and cash equivalents | 448 | 558 |
Long-term debt, including current maturities | 8,434 | 9,261 |
Fair value | ||
Financial instruments | ||
Cash and cash equivalents | 1,382 | 1,790 |
Restricted cash and cash equivalents | 448 | 558 |
Long-term debt, including current maturities | $ 3,814 | $ 8,976 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Oct. 26, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 13, 2020 | Dec. 31, 2019 | May 24, 2019 |
Subsequent events | ||||||||
Total debt | $ 8,434 | $ 8,434 | $ 9,261 | |||||
Debt retirement | 2,748 | $ 891 | ||||||
Aggregate cash payment | 867 | 917 | ||||||
Aggregate net gain (loss) | 449 | $ (12) | 396 | (39) | ||||
6.50% Senior Notes due November 2020 | ||||||||
Subsequent events | ||||||||
Total debt | $ 191 | 191 | 206 | |||||
Debt retirement | $ 15 | 78 | ||||||
Debt instrument interest rate stated percentage | 6.50% | 6.50% | ||||||
6.375% Senior Notes due December 2021 | ||||||||
Subsequent events | ||||||||
Total debt | $ 116 | $ 116 | 221 | |||||
Debt retirement | $ 105 | 104 | ||||||
Debt instrument interest rate stated percentage | 6.375% | 6.375% | ||||||
3.80% Senior Notes due October 2022 | ||||||||
Subsequent events | ||||||||
Total debt | $ 37 | $ 37 | 189 | |||||
Debt retirement | $ 152 | $ 212 | ||||||
Debt instrument interest rate stated percentage | 3.80% | 3.80% | ||||||
5.375% Senior Secured Notes due May 2023 | ||||||||
Subsequent events | ||||||||
Total debt | $ 498 | $ 498 | 518 | |||||
Debt retirement | $ 21 | |||||||
Debt instrument interest rate stated percentage | 5.375% | 5.375% | 5.375% | |||||
7.25% Senior Notes due November 2025 | ||||||||
Subsequent events | ||||||||
Total debt | $ 535 | $ 535 | $ 737 | |||||
Debt retirement | $ 124 | $ 207 | ||||||
Debt instrument interest rate stated percentage | 7.25% | 7.25% | ||||||
7.25% Senior Notes due November 2025 | Whitebox | ||||||||
Subsequent events | ||||||||
Total debt | $ 543 | $ 543 | ||||||
Subsequent Event | Early Tendered Notes [Member] | ||||||||
Subsequent events | ||||||||
Tender Offer Principal Amount | $ 200 | |||||||
Aggregate cash payment | 213 | |||||||
Aggregate net gain (loss) | 130 | |||||||
Subsequent Event | 6.50% Senior Notes due November 2020 | ||||||||
Subsequent events | ||||||||
Debt retirement | $ 36 | |||||||
Debt instrument interest rate stated percentage | 6.50% | |||||||
Subsequent Event | 6.375% Senior Notes due December 2021 | ||||||||
Subsequent events | ||||||||
Debt retirement | $ 76 | |||||||
Debt instrument interest rate stated percentage | 6.375% | |||||||
Subsequent Event | 3.80% Senior Notes due October 2022 | ||||||||
Subsequent events | ||||||||
Debt retirement | $ 9 | |||||||
Debt instrument interest rate stated percentage | 3.80% | |||||||
Subsequent Event | 5.375% Senior Secured Notes due May 2023 | ||||||||
Subsequent events | ||||||||
Debt retirement | $ 103 | |||||||
Debt instrument interest rate stated percentage | 5.375% |