Noble (NE) 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Jun. 30, 2009	Apr. 30, 2010 Noble-Swiss	Apr. 30, 2010 Noble-Cayman
Entity Registrant Name	Noble Corp / Switzerland
Entity Central Index Key	0001458891
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
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		7.8
Entity Common Stock, Shares Outstanding			255,840,260	0

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) ( Noble-Swiss, USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Noble-Swiss
Current assets
Cash and cash equivalents	$847,710	$735,493
Accounts receivable	622,213	647,454
Prepaid expenses and other current assets	122,017	100,243
Total current assets	1,591,940	1,483,190
Property and equipment
Drilling equipment and facilities	8,979,100	8,666,750
Other	151,319	143,477
Property and equipment, Gross	9,130,419	8,810,227
Accumulated depreciation	(2,265,497)	(2,175,775)
Property and equipment, Net	6,864,922	6,634,452
Other assets	277,240	279,254
Total assets	8,734,102	8,396,896
Current liabilities
Accounts payable	249,847	197,800
Accrued payroll and related costs	89,824	100,167
Taxes payable	80,013	68,760
Other current liabilities	62,543	67,220
Total current liabilities	482,227	433,947
Long-term debt	750,987	750,946
Deferred income taxes	299,787	300,231
Other liabilities	146,564	123,340
Total liabilities	1,679,565	1,608,464
Commitments and Contingencies
Shareholders' equity
Shares; 261,926 shares and 261,975 shares outstanding	1,118,742	1,130,607
Treasury shares, at cost; 6,115 shares and 3,750 shares	(242,459)	(143,031)
Capital in excess of par value	11,389	0
Retained earnings	6,227,512	5,855,737
Accumulated other comprehensive loss	(60,647)	(54,881)
Total shareholders' equity	7,054,537	6,788,432
Total liabilities and shareholders' equity	8,734,102	8,396,896
Noble-Cayman
Current assets
Cash and cash equivalents	837,181	726,225
Accounts receivable	622,213	647,454
Due from affiliate	296,196	191,004
Other current assets	120,348	99,206
Total current assets	1,875,938	1,663,889
Property and equipment
Drilling equipment and facilities	8,979,100	8,666,750
Other	123,071	115,414
Property and equipment, Gross	9,102,171	8,782,164
Accumulated depreciation	(2,265,304)	(2,175,775)
Property and equipment, Net	6,836,867	6,606,389
Other assets	277,239	279,139
Total assets	8,990,044	8,549,417
Current liabilities
Accounts payable	249,792	197,712
Accrued payroll and related costs	87,515	99,372
Taxes payable	71,027	61,577
Other current liabilities	62,309	67,246
Total current liabilities	470,643	425,907
Long-term debt	750,987	750,946
Deferred income taxes	299,787	300,231
Other liabilities	146,564	123,137
Total liabilities	1,667,981	1,600,221
Commitments and Contingencies
Shareholders' equity
Ordinary shares; 261,246 shares outstanding	26,125	26,125
Capital in excess of par value	368,374	368,374
Retained earnings	6,988,211	6,609,578
Accumulated other comprehensive loss	(60,647)	(54,881)
Total shareholders' equity	7,322,063	6,949,196
Total liabilities and shareholders' equity	$8,990,044	$8,549,417

1_Consolidated Balance Sheet (U

Consolidated Balance Sheet (Unaudited) (Parenthetical)
Share data in Thousands	Mar. 31, 2010 Noble-Swiss	Dec. 31, 2009 Noble-Swiss
Noble-Swiss
Shareholders' equity
Shares, issued	261,926	261,975
Treasury Stock, shares	6,115	3,750
Noble-Cayman
Shareholders' equity
Ordinary shares, outstanding	261,246	261,246

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010 Noble-Swiss	3 Months Ended Mar. 31, 2009 Noble-Swiss
Noble-Swiss
Operating revenues
Contract drilling services	$808,646	$872,397
Reimbursables	24,233	16,678
Labor contract drilling services	7,761	6,934
Other	211	142
Operating revenues	840,851	896,151
Operating costs and expenses
Contract drilling services	254,431	240,856
Reimbursables	19,743	14,083
Labor contract drilling services	5,888	4,376
Depreciation and amortization	115,857	92,984
Selling, general and administrative	21,971	17,717
(Gain)/loss on asset disposal/involuntary conversion, net		12,034
Total operating costs and expenses	417,890	382,050
Operating income	422,961	514,101
Other income (expense)
Interest expense, net of amount capitalized	(465)	(521)
Interest income and other, net	3,626	1,072
Income before income taxes	426,122	514,652
Income tax provision	(55,396)	(100,357)
Net income	370,726	414,295
Net income per share
Basic	1.44	1.58
Diluted	1.43	1.58
Noble-Cayman
Operating revenues
Contract drilling services	808,646	872,397
Reimbursables	24,233	16,678
Labor contract drilling services	7,761	6,934
Other	211	142
Operating revenues	840,851	896,151
Operating costs and expenses
Contract drilling services	252,781	240,856
Reimbursables	19,743	14,083
Labor contract drilling services	5,888	4,376
Depreciation and amortization	115,664	92,984
Selling, general and administrative	15,888	17,625
(Gain)/loss on asset disposal/involuntary conversion, net		12,034
Total operating costs and expenses	409,964	381,958
Operating income	430,887	514,193
Other income (expense)
Interest expense, net of amount capitalized	(465)	(521)
Interest income and other, net	3,607	1,072
Income before income taxes	434,029	514,744
Income tax provision	(55,396)	(100,357)
Net income	$378,633	$414,387

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010 Noble-Swiss	3 Months Ended Mar. 31, 2009 Noble-Swiss
Noble-Swiss
Cash flows from operating activities
Net income	$370,726	$414,295
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	115,857	92,984
(Gain)/loss on asset disposal/involuntary conversion, net		12,034
Deferred income tax provision	(444)	4,545
Share-based compensation expense	8,100	8,400
Pension contributions	(1,574)	(1,290)
Other changes in assets and liabilities:
Accounts receivable	25,241	11,939
Other current assets	(25,625)	(26,267)
Other assets	(6,162)	(10,665)
Accounts payable	(2,429)	23,711
Other current liabilities	(1,367)	17,236
Other liabilities	21,611	912
Net cash from operating activities	503,934	547,834
Cash flows from investing activities
New construction	(141,404)	(135,576)
Other capital expenditures	(179,044)	(89,505)
Major maintenance expenditures	(18,316)	(25,639)
Change in accrued capital expenditures	54,476	(47,259)
Net cash from investing activities	(284,288)	(297,979)
Cash flows from financing activities
Payments of other long-term debt		(172,700)
Proceeds from options exercised	2,443	177
Dividends/par value reduction payments paid	(11,935)	(10,470)
Repurchases of employee shares	(9,285)	(5,563)
Repurchases of shares	(88,652)	(60,867)
Net cash from financing activities	(107,429)	(249,423)
Net increase in cash and cash equivalents	112,217	432
Cash and cash equivalents, beginning of period	735,493	513,311
Cash and cash equivalents, end of period	847,710	513,743
Noble-Cayman
Cash flows from operating activities
Net income	378,633	414,387
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	115,664	92,984
(Gain)/loss on asset disposal/involuntary conversion, net		12,034
Deferred income tax provision	(444)	4,545
Share-based compensation expense		8,400
Pension contributions	(1,574)	(1,290)
Other changes in assets and liabilities:
Accounts receivable	25,241	11,939
Due from affiliates, net	(105,192)
Other current assets	(24,993)	(26,267)
Other assets	(6,276)	(10,750)
Accounts payable	(2,396)	23,619
Other current liabilities	(5,418)	17,236
Other liabilities	21,814	912
Net cash from operating activities	395,059	547,749
Cash flows from investing activities
New construction	(141,404)	(135,576)
Other capital expenditures	(178,859)	(89,505)
Major maintenance expenditures	(18,316)	(25,639)
Change in accrued capital expenditures	54,476	(47,259)
Net cash from investing activities	(284,103)	(297,979)
Cash flows from financing activities
Payments of other long-term debt		(172,700)
Employee stock transactions		(5,386)
Dividends/par value reduction payments paid		(10,470)
Repurchases of shares		(60,867)
Net cash from financing activities		(249,423)
Net increase in cash and cash equivalents	110,956	347
Cash and cash equivalents, beginning of period	726,225	513,311
Cash and cash equivalents, end of period	$837,181	$513,658

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) (USD $)
In Thousands	Noble-Swiss	Noble-Swiss Common Stock	Noble-Swiss Additional Paid-in Capital	Noble-Swiss Retained Earnings	Noble-Swiss Treasury Shares	Noble-Swiss Accumulated Other Comprehensive Loss	Noble-Cayman	Noble-Cayman Common Stock	Noble-Cayman Additional Paid-in Capital	Noble-Cayman Retained Earnings	Noble-Cayman Accumulated Other Comprehensive Loss
Shares, Beginning Balance at Dec. 31, 2009		261,975						261,246
Beginning Balance at Dec. 31, 2009	$6,788,432	$1,130,607	$0	$5,855,737	($143,031)	($54,881)	$6,949,196	$26,125	$368,374	$6,609,578	($54,881)
Share-based compensation
Share-based compensation	8,100	11	8,089
Share-based compensation, shares		2
Contribution to employee benefit plans	18	2	16
Contribution to employee benefit plans, shares		1
Exercise of stock options	2,443	511	1,932
Exercise of stock options, shares		118
Tax benefit of stock options exercised	456		456
Restricted shares surrendered for withholding taxes or forfeited	(9,285)	(739)	896	1,334	(10,776)
Restricted shares surrendered for withholding taxes or forfeited, shares		(170)
Repurchases of shares	(88,652)				(88,652)
Net income	370,726			370,726			378,633			378,633
Dividends/par value reduction payments paid	(11,935)	(11,650)		(285)
Other comprehensive income (loss), net	(5,766)					(5,766)	(5,766)				(5,766)
Ending Balance at Mar. 31, 2010	$7,054,537	$1,118,742	$11,389	$6,227,512	($242,459)	($60,647)	$7,322,063	$26,125	$368,374	$6,988,211	($60,647)
Shares, Ending Balance at Mar. 31, 2010		261,926						261,246

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010 Noble-Swiss	3 Months Ended Mar. 31, 2009 Noble-Swiss
Noble-Swiss
Net income	$370,726	$414,295
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(4,480)	(1,127)
Settlements and gain (loss) on foreign currency forward contracts	(1,925)	194
Amortization of deferred pension plan amounts	639	852
Other comprehensive loss, net	(5,766)	(81)
Comprehensive income	364,960	414,214
Noble-Cayman
Net income	378,633	414,387
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(4,480)	(1,127)
Settlements and gain (loss) on foreign currency forward contracts	(1,925)	194
Amortization of deferred pension plan amounts	639	852
Other comprehensive loss, net	(5,766)	(81)
Comprehensive income	$372,867	$414,306

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 Basis of Presentation On March26, 2009, we completed a series of transactions that effectively changed the place of incorporation of our parent holding company from the Cayman Islands to Switzerland. As a result of these transactions, Noble-Cayman, our former publicly-traded parent holding company, became a direct, wholly-owned subsidiary of Noble-Swiss, our current publicly-traded parent company. Noble-Swiss principal asset is 100% of the shares of Noble-Cayman. Noble-Cayman has no public equity outstanding after March26, 2009. The consolidated financial statements of Noble-Swiss include the accounts of Noble-Cayman, and Noble-Swiss conducts substantially all of its business through Noble-Cayman and its subsidiaries. In connection with these transactions, we relocated our principal executive offices, executive officers and selected personnel to Geneva, Switzerland. The accompanying unaudited consolidated financial statements of Noble-Swiss and Noble-Cayman have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) as they pertain to Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal recurring nature. The Consolidated Balance Sheets at December31, 2009 presented herein are derived from the December31, 2009, audited consolidated financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December31, 2009, filed by both Noble-Swiss and Noble-Cayman. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Certain amounts in prior periods have been reclassified to conform to the current year presentation.

Share Data

Share Data
	3 Months Ended Mar. 31, 2010
Share Data [Abstract]
Share Data	Note 2 Share Data Share capital The following is a detail of Noble-Swiss share capital as of March31, 2010, and December31, 2009, (in thousands). March 31, December 31, 2010 2009 Shares outstanding and trading 255,811 258,225 Treasury shares 6,115 3,750 Total shares outstanding 261,926 261,975 Treasury shares held for share-based compensation plans 14,340 14,291 Total shares issued 276,266 276,266 Par value (in CHF) 4.80 4.85 Shares issued by Noble-Swiss at March31, 2010, totalled 276.3million shares and include 6.1million shares held in treasury and 14.3million shares held by a wholly-owned subsidiary. Treasury shares are recorded at cost, and include shares repurchased pursuant to our approved share repurchase program discussed below and shares surrendered by employees for taxes payable upon the vesting of restricted stock. Our Board of Directors is authorized to issue up to a maximum of 414.4million shares without additional shareholder approval and without conditions regarding use. Our Board of Directors may further increase Noble-Swiss share capital through the issuance of up to 138.1million conditionally authorized registered shares without obtaining additional shareholder approval. The issuance of these conditionally authorized registered shares is subject to certain conditions regarding their use. Treasury shares/share repurchases Share repurchases were made pursuant to the share repurchase program that our Board of Directors authorized and adopted. Subsequent to our 2009 Swiss migration, all shares repurchased under our share repurchase program are held in treasury. During the three months ended March31, 2010, we repurchased 2.1million shares under this plan. At March31, 2010, 10.8million shares remained available under this authorization. Treasury shares held at March31, 2010 include 5.9 million shares repurchased under our share repurchase program and 0.2million shares surrendered by employees for taxes payable upon the vesting of restricted stock. Earnings per share We have determined that our unvested share-based payment awards, which include restricted shares and restricted units, contain non-forfeitable rights to dividends and are considered participating securities and should be included in the computation of earnings per share pursuant to the two-class method. The two-class method allocates undistributed earnings between common shares and participating securities. The diluted earnings per share calculation under the two-class method also includes the dilutive effect of potential share issuances in connection with stock options. The dilutive effect of stock options is determined using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for Noble-Swiss. Three Months Ended March 31, 2010 2009 Allocation of net income Basic Net income $ 370,726 $ 414,295 Earnings allocated to unvested shar

Property and Equipment

Property and Equipment
	3 Months Ended Mar. 31, 2010
Property and Equipment [Abstract]
Property and Equipment	Note 3 Property and Equipment Interest is capitalized on construction-in-progress at the weighted average cost of debt outstanding during the period of construction. Capitalized interest was $13million and $15 million for the three months ended March31, 2010 and 2009, respectively. During the first quarter of 2009, we recognized a charge of $12million related to the Noble Fri Rodli, a submersible that has been cold stacked since October2007. We recorded the charge as a result of a decision to evaluate disposition alternatives for this rig. As of March31, 2010, the rig had not been disposed of, but was removed from our rig count effective March31, 2009.

Accounts Receivable

Accounts Receivable
	3 Months Ended Mar. 31, 2010
Accounts Receivable [Abstract]
Accounts Receivable	Note 4 Accounts Receivable During the second quarter of 2009, we reached an agreement with one of our customers in the U.S. Gulf of Mexico regarding outstanding receivables owed to us, which totaled approximately $62 million at March31, 2010. The customer has conveyed to us an overriding royalty interest (ORRI) as security for the outstanding receivables and has agreed to a payment plan to repay all past due amounts. Amounts received by us pursuant to the ORRI will be applied to the customers payment obligations under the payment plan. We have agreed that we will not sell, assign or otherwise dispose of the ORRI as long as the customer meets its payment obligations and complies with the terms of the agreement, which runs through June2011. As of March31, 2010, the customer has met its payment obligations under the agreement. The customer has a right to reacquire the ORRI at the end of the term of the agreement, or earlier, subject to certain conditions, which include the customer being current on all payment obligations.

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
Debt	Note 5 Debt Long-term debt consisted of the following at March31, 2010 and December31, 2009: March 31, December 31, 2010 2009 5.875% Senior Notes due 2013 $ 299,883 $ 299,874 7.375% Senior Notes due 2014 249,409 249,377 7.50% Senior Notes due 2019 201,695 201,695 Credit Facility Long-term debt $ 750,987 $ 750,946 We have a $600million unsecured bank credit facility (the Credit Facility), which contains various covenants, including a debt to total tangible capitalization covenant that limits this ratio to 0.60. As of March31, 2010, our ratio of debt to total tangible capitalization was 0.09. Fair Value of Debt Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The estimated fair value of our senior notes was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar remaining maturities. The following table presents the estimated fair value of our long-term debt as of March31, 2010 and December31, 2009. March 31, 2010 December 31, 2009 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value 5.875% Senior Notes due 2013 $ 299,883 $ 321,239 $ 299,874 $ 325,398 7.375% Senior Notes due 2014 249,409 283,704 249,377 282,105 7.50% Senior Notes due 2019 201,695 230,995 201,695 231,015

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
Income Taxes	Note 6 Income Taxes At December31, 2009, the reserves for uncertain tax positions totaled $98million (net of related tax benefits of $7million). At March31, 2010, the reserves for uncertain tax positions totaled $104million (net of related tax benefits of $8million). If the March31, 2010 reserves are not realized, the provision for income taxes would be reduced by $83million and equity would be directly increased by $21million. We do not anticipate that any tax contingencies resolved in the next 12months will have a material impact on our consolidated financial position or results of operations.

Employee Benefit Plans

Employee Benefit Plans
	3 Months Ended Mar. 31, 2010
Employee Benefit Plans [Abstract]
Employee Benefit Plans	Note 7 Employee Benefit Plans Pension costs include the following components: Three Months Ended March 31, 2010 2009 Non-U.S. U.S. Non-U.S. U.S. Service cost $ 1,116 $ 1,912 $ 748 $ 1,574 Interest cost 1,266 1,957 1,022 1,615 Return on plan assets (1,366 ) (2,392 ) (1,271 ) (2,227 ) Amortization of prior service cost 57 98 Amortization of transition obligation 18 17 Recognized net actuarial loss 181 705 57 87 Net pension expense $ 1,215 $ 2,239 $ 573 $ 1,147 The Pension Protection Act of 2006 requires that pension plans fund towards a target of at least 100percent by the end of 2011 and increases the amount we are allowed to contribute to our U.S. pension plans in the near term. During the three months ended March31, 2010, we made contributions to our pension plans totaling $2million. We expect minimum funding of our pension plans to total approximately $16million during 2010. We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (Restoration Plan). The Restoration Plan is a nonqualified, unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment income and, conversely, we benefit should phantom investment losses occur. At both March31, 2010 and December31, 2009, our liability under the Restoration Plan totaled $8million. We have purchased investments that closely correlate to the investment elections made by participants in the Restoration Plan in order to mitigate the impact of the phantom investment income and losses on our financial statements. The value of these investments held for our benefit totaled $8million at both March31, 2010 and December31, 2009.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	Note 8 Derivative Instruments and Hedging Activities We periodically enter into derivative instruments to manage our exposure to fluctuations in interest rates and foreign currency exchange rates, and we may conduct hedging activities in future periods to mitigate such exposure. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives. Hedge effectiveness is evaluated based on the matching of critical terms between derivative contracts and the hedged item. Any change in fair value resulting from ineffectiveness is recognized immediately in earnings. We did not recognize a gain or loss due to hedge ineffectiveness in our Consolidated Statements of Income during the three months ended March31, 2010 and 2009 related to these derivative instruments. Cash Flow Hedges Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. We typically maintain forward contracts settling monthly in their respective local currencies to mitigate certain exchange exposure. The forward contract settlements in the remainder of 2010 represent approximately 44percent of these forecasted local currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. Dollars, was approximately $95million at March31, 2010. The balance of the net unrealized gain/(loss) related to our forward contracts included in Accumulated other comprehensive loss and related activity is as follows: Three Months Ended March 31, 2010 2009 Net unrealized gain at beginning of period $ 417 $ Activity during period: Settlement of forward contracts during period (287 ) Net unrealized gain/(loss) on outstanding forward contracts (1,638 ) 194 Net unrealized gain/(loss) at end of period $ (1,508 ) $ 194 Fair Value Hedges During 2008 we entered into a firm commitment for the construction of a newbuild drillship. The drillship will be constructed in two phases, with the second phase being installation and commissioning of the topside equipment. The contract for this second phase of construction is denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward contracts to purchase Euros. As of March31, 2010, the aggregate notional amount of the forward contracts was 50million Euros. Each forward contract settles in connection with required payments under the construction contract. We are accounting for these forward contracts as fair value hedges. The fair market value of these derivative instruments is included in Other current assets/liabilities or Other assets/liabilities, depending on when the forward contract is expected to be settled. Gains and losses from these fair value hedges would be recognized in earnings currently along with the change in fair value of the hedged item attributable to the risk being hedged

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	3 Months Ended Mar. 31, 2010
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 9 Fair Value of Financial Instruments The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis: March 31, 2010 December 31, 2009 Estimated Fair Value Measurements Quoted Significant Prices in Other Significant Active Observable Unobservable Carrying Markets Inputs Inputs Carrying Estimated Amount (Level 1) (Level 2) (Level 3) Amount Fair Value Assets Marketable securities $ 8,213 $ 8,213 $ $ $ 8,483 $ 8,483 Forward contracts $ 1,608 $ $ 1,608 $ $ 654 $ 654 Liabilities Forward contracts $ 7,867 $ $ 7,867 $ $ 1,002 $ 1,002 The derivative instruments have been valued using actively quoted prices and quotes obtained from the counterparties to the derivative instruments. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in the accompanying Consolidated Balance Sheets approximate fair value.

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 10 Commitments and Contingencies Noble Asset Company Limited (NACL), our wholly-owned, indirect subsidiary, was named one of 21 parties served a Show Cause Notice (SCN) issued by the Commissioner of Customs (Prev.), Mumbai, India (the Commissioner) in August2003. The SCN concerned alleged violations of Indian customs laws and regulations regarding one of our jackups. The Commissioner alleged certain violations to have occurred before, at the time of, and after NACL acquired the rig from the rigs previous owner. In the purchase agreement for the rig, NACL received contractual indemnification against liability for Indian customs duty from the rigs previous owner. In connection with the export of the rig from India in 2001, NACL posted a bank guarantee in the amount of 150million Indian Rupees (or $3million at March31, 2010) and a customs bond in the amount of 970million Indian Rupees (or $22million at March31, 2010), both of which remain in place. In March2005, the Commissioner passed an order against NACL and the other parties cited in the SCN seeking (i)to invoke the bank guarantee posted on behalf of NACL as a fine, (ii)to demand duty of (a) $19 million plus interest related to a 1997 alleged import and (b) $22million plus interest related to a 1999 alleged import, provided that the duty and interest demanded in (b)would not be payable if the duty and interest demanded in (a)were paid by NACL, and (iii)to assess a penalty of $500,000 against NACL. NACL appealed the order of the Commissioner to the Customs, Excise Service Tax Appellate Tribunal (CESTAT). At a hearing on April5, 2006, CESTAT upheld NACLs appeal and overturned the Commissioners March2005 order against NACL in its entirety. CESTAT thereafter issued its written judgment dated August8, 2006 upholding NACLs appeal on all grounds and setting aside the duty demand, interest, fine and penalty. The Commissioner filed an appeal in the Bombay High Court challenging the order passed by CESTAT. In August2008, the Division Bench of the Bombay High Court dismissed the Commissioners appeal of CESTATs order. In November2008, the Commissioner filed a Special Leave Petition, an Appeal in the Supreme Court of India, appealing the order of the Bombay High Court. NACL has filed an Affidavit-in-reply opposing admission of the Appeal in the Supreme Court of India, and is seeking the return or cancellation of its previously posted custom bond and bank guarantee. NACL continues to pursue contractual indemnification against liability for Indian customs duty and related costs and expenses against the rigs previous owner in arbitration proceedings in London, which proceedings the parties have temporarily stayed pending further developments in the Indian proceeding. We do not believe the ultimate resolution of this matter will have a material adverse effect on our financial position, results of operations or cash flows. We operate in a number of countries throughout the world and our income tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We are currently contesting several tax assessments and may contest fut

Segment and Related Information

Segment and Related Information
	3 Months Ended Mar. 31, 2010
Segment and Related Information [Abstract]
Segment and Related Information	Note 11 Segment and Related Information We report our contract drilling operations as a single reportable segment: Contract Drilling Services. The consolidation of our contract drilling operations into one reportable segment is attributable to how we manage our business, and the fact that all of our drilling fleet is dependent upon the worldwide oil and gas industry. The mobile offshore drilling units comprising our offshore rig fleet operate in a single, global market for contract drilling services and are often redeployed globally due to changing demands of our customers, which consist largely of major non-U.S. and government owned/controlled oil and gas companies throughout the world. Our contract drilling services segment currently conducts contract drilling operations in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the North Sea, Brazil, Libya and West Africa. We evaluate the performance of our operating segment primarily based on operating revenues and net income. Summarized financial information of our reportable segment for the three months ended March31, 2010 and 2009 is shown in the following table. The Other column includes results of labor contract drilling services and corporate related items. Three Months Ended March 31, 2010 2009 Contract Contract Drilling Drilling Services Other Total Services Other Total Revenues from external customers $ 832,160 $ 8,691 $ 840,851 $ 888,680 $ 7,471 $ 896,151 Depreciation and amortization 113,173 2,684 115,857 90,898 2,086 92,984 Segment operating income 423,944 (983 ) 422,961 513,636 465 514,101 Interest expense, net of amount capitalized 58 407 465 190 331 521 Income tax provision 55,592 (196 ) 55,396 100,145 212 100,357 Segment profit 372,036 (1,310 ) 370,726 413,420 875 414,295 Total assets (at end of period) 7,882,139 851,963 8,734,102 6,805,467 497,836 7,303,303 Capital expenditures 335,583 3,181 338,764 239,735 10,985 250,720

Accounting Pronouncements

Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
Accounting Pronouncements [Abstract]
Accounting Pronouncements	Note 12 Accounting Pronouncements In June2009, the Financial Accounting Standards Board (the FASB), issued guidance which expanded disclosures that a reporting entity provides about transfers of financial assets and its effect on the financial statements. This guidance is effective for annual and interim reporting periods beginning after November15, 2009. The adoption of this guidance did not have a material impact on our financial condition or results of operations or financial disclosures. Also in June2009, the FASB issued guidance that revises how an entity evaluates variable interest entities. This guidance is effective for annual and interim reporting periods beginning after November15, 2009. The adoption of this guidance did not have a material impact on our financial condition or results of operations and cash flows. In October2009, the FASB issued guidance that impacts the recognition of revenue in multiple-deliverable arrangements. The guidance establishes a selling-price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to multiple-deliverable arrangements and to align the accounting with the underlying economics of the multiple-deliverable transaction. This guidance is effective for fiscal years beginning on or after June15, 2010. We are in the process of evaluating this guidance but do not believe this guidance will have a material impact on our financial condition or results of operations and cash flows. In January2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is effective for annual and interim periods beginning on or after December15, 2009. These additional disclosures did not have a significant impact on our financial disclosures or our financial condition. In February2010, the FASB issued guidance that clarifies the disclosure of subsequent events for SEC registrants. Under this guidance an SEC registrant can disclose the company has considered subsequent events through the date of filing with the SEC as opposed to specifically stating the date to which subsequent events were considered. This guidance is effective upon the issuance of the guidance. Our adoption of this guidance did not have a material impact on our financial disclosures or financial condition.

Guarantees of Registered Securi

Guarantees of Registered Securities
	3 Months Ended Mar. 31, 2010
Guarantees of Registered Securities [Abstract]
Guarantees of Registered Securities	Note 13 Guarantees of Registered Securities Noble-Cayman and Noble Holding (U.S.) Corporation (NHC), each a wholly-owned subsidiary of Noble-Swiss are guarantors of Noble Drilling Corporations (NDC) 7.50% Senior Notes due 2019. The outstanding principal balance of the 7.50% Senior Notes at March31, 2010 was $202million. NDC is an indirect, wholly-owned subsidiary of Noble-Swiss and a direct, wholly-owned subsidiary of NHC. Noble-Caymans and NHCs guarantees of the 7.50% Senior Notes are full and unconditional. In December2005, Noble Drilling Holding LLC (NDH), an indirect wholly-owned subsidiary of Noble-Swiss, became a co-obligor on (and effectively a guarantor of) the 7.50% Senior Notes. In connection with our worldwide internal restructuring completed during 2009, Noble Drilling Services 6 LLC (NDS6), an indirect wholly-owned subsidiary of Noble-Swiss, became a co-obligor on (and effectively a guarantor of) the 7.50% Senior Notes. In connection with the issuance of Noble-Caymans 5.875% Senior Notes due 2013, NDC guaranteed the payment of the 5.875% Senior Notes. In connection with our 2009 worldwide internal restructuring, Noble Holding International Limited (NHIL), an indirect wholly-owned subsidiary of Noble-Cayman and Noble-Swiss, also guaranteed the payment of the 5.875% Senior Notes. NDCs and NHILs guarantees of the 5.875% Senior Notes are full and unconditional. The outstanding principal balance of the 5.875% Senior Notes at March31, 2010 was $300million. In November2008, NHIL issued $250million principal amount of 7.375% Senior Notes due 2014, which are fully and unconditionally guaranteed by Noble-Cayman. The outstanding principal balance of the 7.375% Senior Notes at March31, 2010 was $249million. As of March31, 2010, the 7.5% Senior Notes due 2019 and the 5.875% Senior Notes due 2013 each had less than 300 record holders and the duties of NHC, NDH, NDC and NDS6 to file reports under the Securities Exchange Act of 1934 were suspended. The following consolidating financial statements of Noble-Cayman, NHIL, and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

Subsidiary Balance Sheet

Subsidiary Balance Sheet
	3 Months Ended Mar. 31, 2010
Consolidated Balance Sheet [Abstract]
Subsidiary Balance Sheet	Subsidiary Balance Sheet NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET March31, 2010 (in thousands) Other Noble- Subsidiaries Consolidating Cayman NHIL of Noble Adjustments Total ASSETS Current assets Cash and cash equivalents $ 209 $ $ 836,972 $ $ 837,181 Accounts receivable 622,213 622,213 Accounts receivable from affiliates 246,699 413,777 (364,280 ) 296,196 Prepaid expenses and other current assets 1,823 158,463 (39,938 ) 120,348 Total current assets 2,032 246,699 2,031,425 (404,218 ) 1,875,938 Property and equipment Drilling equipment, facilities and other 9,102,171 9,102,171 Accumulated depreciation (2,265,304 ) (2,265,304 ) Total property and equipment, net 6,836,867 6,836,867 Notes receivable from affiliates 3,507,062 129,900 (3,636,962 ) Investments in affiliates 4,635,473 4,409,718 (9,045,191 ) Other assets 2,520 1,645 273,074 277,239 Total assets $ 8,147,087 $ 4,658,062 $ 9,271,266 $ (13,086,371 ) $ 8,990,044 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable and accrued liabilities $ 11,032 $ 35,539 $ 464,010 $ (39,938 ) $ 470,643 Accounts payable to affiliates 364,280 (364,280 ) Total current liabilities 375,312 35,539 464,010 (404,218 ) 470,643 Long-term debt 299,883 249,408 201,696 750,987 Notes payable to affiliates 129,900 3,507,062 (3,636,962 ) Other liabilities 19,929 426,422 446,351 Total liabilities 825,024 284,947 4,599,190 (4,041,180 ) 1,667,981 Commitments and contingencies Shareholders Equity 7,322,063 4,373,115 4,672,076 (9,045,191 ) 7,322,063 Total liabilities and shareholders equity $ 8,147,087 $ 4,658,062 $ 9,271,266 $ (13,086,371 ) $ 8,990,044 NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE

Subsidiary Cash Flows

Subsidiary Cash Flows
	3 Months Ended Mar. 31, 2010
Consolidated Statement of Cash Flows [Abstract]
Subsidiary Cash Flow	Subsidiary Income Statement NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March31, 2010 (in thousands) Other Noble- Subsidiaries Consolidating Cayman NHIL of Noble Adjustments Total Operating revenues Contract drilling services $ $ $ 808,646 $ $ 808,646 Reimbursables 24,233 24,233 Labor contract drilling services 7,761 7,761 Other 211 211 Total operating revenues 840,851 840,851 Operating costs and expenses Contract drilling services 5 252,776 252,781 Reimbursables 19,743 19,743 Labor contract drilling services 5,888 5,888 Depreciation and amortization 115,664 115,664 Selling, general and administrative 43 15,845 15,888 Total operating costs and expenses 5 43 409,916 409,964 Operating income (loss) (5 ) (43 ) 430,935 430,887 Other income (expense) Equity earnings in affiliates (net of tax) 377,338 389,881 (767,219 ) Interest expense, net of amounts capitalized (413 ) (9,629 ) (1,506 ) 11,083 (465 ) Interest income and other, net 1,713 12,977 (11,083 ) 3,607 Income before income taxes 378,633 380,209 442,406 (767,219 ) 434,029 Income tax provision (55,396 ) (55,396 ) Net income $ 378,633 $ 380,209 $ 387,010 $ (767,219 ) $ 378,633 NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March31, 2009 (in thousands) Other Noble- Subsidiaries Consolidating Cayman NHIL of Noble Adjustments Total Operating revenues Contract drilling services $ $ $ 872,397 $ $ 872,397 Reimbursables 16,678 16,678 Labor contract drilling services 6,934 6,934 Other 142 142 Total operating revenues 896,151 896,151 Operating costs and expenses

Subsidiary Income Statement

Subsidiary Income Statement
	3 Months Ended Mar. 31, 2010
Consolidated Statement of Income [Abstract]
Subsidiary Income Statement	Subsidiary Cash Flow NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March31, 2010 (in thousands) Other Noble- Subsidiaries Consolidating Cayman NHIL of Noble Adjustments Total Cash flows from operating activities Net cash from operating activities 4,203 (4,558 ) 395,414 395,059 Cash flows from investing activities New construction and capital expenditures (284,103 ) (284,103 ) Net cash from investing activities (284,103 ) (284,103 ) Cash flows from financing activities Advances (to)from affiliates (3,997 ) 4,558 (561 ) Net cash from financing activities (3,997 ) 4,558 (561 ) Net increase (decrease)in cash and cash equivalents 206 110,750 110,956 Cash and cash equivalents, beginning of period 3 726,222 726,225 Cash and cash equivalents, end of period $ 209 $ $ 836,972 $ $ 837,181 NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March31, 2009 (in thousands) Other Noble- Subsidiaries Consolidating Cayman NHIL of Noble Adjustments Total Cash flows from operating activities Net cash from operating activities (1,718 ) (1,319 ) 550,786 547,749 Cash flows from investing activities New construction and capital expenditures (297,979 ) (297,979 ) Repayments of notes from affiliates 150,000 (150,000 ) Net cash from investing activities (147,979 ) (150,000 ) (297,979 ) Cash flows from financing activities Payments of other long-term debt (172,700 ) (172,700 ) Advances (to)from affiliates 228,432 1,319 (229,751 ) Repayments of notes to affiliates (150,000 ) 150,000 Repurchases of ordinary shares (60,867 ) (60,867 ) Other (15,856 ) (15,856 ) Net cash from financing activities 1,709 1,319 (402,451 ) 150,000