Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2014 | Oct. 28, 2014 | Oct. 28, 2014 | |
Common units | Subordinated units | ||
Entity Registrant Name | 'Transocean Partners LLC | ' | ' |
Entity Central Index Key | '0001607250 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 41,379,310 | 27,586,207 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 |
Predecessor | Predecessor | |||
Operating revenues | ' | ' | ' | ' |
Contract drilling revenues | $134 | $422 | $145 | $389 |
Other revenues | 2 | 7 | 2 | 7 |
Total operating revenues | 136 | 429 | 147 | 396 |
Costs and expenses | ' | ' | ' | ' |
Operating and maintenance | 56 | 186 | 62 | 181 |
Depreciation | 16 | 49 | 16 | 49 |
General and administrative | 4 | 10 | 2 | 7 |
Total costs and expenses | 76 | 245 | 80 | 237 |
Operating income | 60 | 184 | 67 | 159 |
Interest income | 1 | 2 | ' | 1 |
Income before income tax expense | 61 | 186 | 67 | 160 |
Income tax expense | 4 | 16 | 7 | 17 |
Net income | 57 | 170 | 60 | 143 |
Net income attributable to Predecessor | 22 | 135 | ' | ' |
Net income subsequent to initial public offering | 35 | 35 | ' | ' |
Net income attributable to noncontrolling interest | 18 | 18 | ' | ' |
Net income attributable to controlling interest | $17 | $17 | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Common units | Subordinated units | Predecessor | |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $49 | ' | ' | ' |
Accounts receivable | 92 | ' | ' | 103 |
Accounts receivable from affiliates | 11 | ' | ' | ' |
Materials and supplies, net | 42 | ' | ' | 34 |
Deferred income taxes, net | 10 | ' | ' | 15 |
Prepaid assets | 9 | ' | ' | 7 |
Total current assets | 213 | ' | ' | 159 |
Property and equipment | 2,294 | ' | ' | 2,309 |
Less accumulated depreciation | -318 | ' | ' | -271 |
Property and equipment, net | 1,976 | ' | ' | 2,038 |
Goodwill | 356 | ' | ' | 213 |
Deferred income taxes, net | 18 | ' | ' | 29 |
Other assets | 25 | ' | ' | 29 |
Total assets | 2,588 | ' | ' | 2,468 |
Liabilities and equity | ' | ' | ' | ' |
Accounts payable to affiliates | 57 | ' | ' | ' |
Debt due to affiliates within one year | 43 | ' | ' | ' |
Deferred revenues | 21 | ' | ' | 37 |
Total current liabilities | 121 | ' | ' | 37 |
Long-term tax liability | ' | ' | ' | 13 |
Deferred revenues | 17 | ' | ' | 30 |
Drilling contract intangible liability | 32 | ' | ' | 44 |
Total long-term liabilities | 49 | ' | ' | 87 |
Commitments and contingencies | ' | ' | ' | ' |
Common units, 41,379,310 authorized, issued and outstanding at September 30, 2014 | ' | 837 | ' | ' |
Subordinated units, 27,586,207 authorized, issued and outstanding at September 30, 2014 | ' | ' | 560 | ' |
Total members' equity | 1,397 | ' | ' | ' |
Net investment | ' | ' | ' | 2,344 |
Noncontrolling interest | 1,021 | ' | ' | ' |
Total equity | 2,418 | 837 | 560 | 2,344 |
Total liabilities and equity | $2,588 | ' | ' | $2,468 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 30, 2014 |
Common units | ' |
Units authorized | 41,379,310 |
Units issued | 41,379,310 |
Units outstanding | 41,379,310 |
Subordinated units | ' |
Units authorized | 27,586,207 |
Units issued | 27,586,207 |
Units outstanding | 27,586,207 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common units | Subordinated units | Total members' equity | Net investment | Noncontrolling interest | Predecessor | Predecessor |
In Millions, unless otherwise specified | Net investment | |||||||
Balance, beginning of period at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | $2,388 | $2,388 |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | 143 | ' |
Net income attributable to controlling interest | ' | ' | ' | ' | ' | ' | ' | 143 |
Distributions to the Predecessor parent, net | ' | ' | ' | ' | ' | ' | -164 | -164 |
Balance, end of period at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | 2,367 | 2,367 |
Balance, beginning of period at Jun. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | 60 | ' |
Balance, end of period at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | 2,367 | ' |
Balance, beginning of period at Dec. 31, 2013 | 2,344 | ' | ' | ' | 2,344 | ' | 2,344 | ' |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 170 | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to controlling interest | 17 | 10 | 7 | 17 | ' | ' | ' | ' |
Net income attributable to Predecessor | 135 | ' | ' | ' | 135 | ' | ' | ' |
Net income subsequent to initial public offering | 35 | ' | ' | ' | ' | ' | ' | ' |
Distributions to the Predecessor parent, net | -102 | ' | ' | ' | -102 | ' | ' | ' |
Effect of formation transaction | ' | ' | ' | ' | -1,003 | 1,003 | ' | ' |
Allocation of net investment | ' | 824 | 550 | 1,374 | -1,374 | ' | ' | ' |
Distribution payable for working capital adjustment | -6 | -4 | -2 | -6 | ' | ' | ' | ' |
Contribution for Parent Payment of Dual Activity Patent Royalties Equity | 3 | 2 | 1 | 3 | ' | ' | ' | ' |
Contribution for Parent Indemnification of Lost Revenues Equity | 9 | 5 | 4 | 9 | ' | ' | ' | ' |
Net income attributable to noncontrolling interest | 18 | ' | ' | ' | ' | 18 | ' | ' |
Balance, end of period at Sep. 30, 2014 | $2,418 | $837 | $560 | $1,397 | ' | $1,021 | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 |
Predecessor | Predecessor | |||
Cash flows from operating activities | ' | ' | ' | ' |
Net income | $57 | $170 | $60 | $143 |
Adjustments to reconcile to net cash provided by operating activities | ' | ' | ' | ' |
Amortization of drilling contract intangibles | -4 | -12 | -4 | -13 |
Depreciation | 16 | 49 | 16 | 49 |
Patent royalties expense | 3 | 3 | ' | ' |
Deferred income taxes | 5 | 16 | 4 | 11 |
Other, net | -1 | -1 | ' | ' |
Changes in deferred revenues, net | -9 | -29 | -9 | -28 |
Changes in deferred costs, net | -3 | -4 | 1 | 3 |
Changes in operating assets and liabilities | ' | ' | ' | ' |
Decrease in accounts receivable, net | 36 | 21 | 3 | 13 |
Increase in materials and supplies, net | -2 | -8 | -3 | -9 |
(Increase) decrease in prepaid assets, net | 1 | -3 | 3 | -3 |
Decrease in balances due to affiliates, net | -62 | -62 | ' | ' |
Increase in income tax liability, net | ' | 1 | 1 | 1 |
Net cash provided by operating activities | 37 | 141 | 72 | 167 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures | ' | -2 | -1 | -2 |
Net cash used in investing activities | ' | -2 | -1 | -2 |
Cash flows from financing activities | ' | ' | ' | ' |
Proceeds from working capital note payable to affiliate | 43 | 43 | ' | ' |
Distributions to the Predecessor parent, net | -39 | -141 | -71 | -165 |
Contributions resulting from formation transactions | 8 | 8 | ' | ' |
Net cash provided by (used in) financing activities | 12 | -90 | -71 | -165 |
Net increase in cash and cash equivalents | 49 | 49 | ' | ' |
Cash and cash equivalents at beginning of period | 0 | 0 | ' | ' |
Cash and cash equivalents at end of period | $49 | $49 | ' | ' |
Nature_of_Business
Nature of Business | 9 Months Ended |
Sep. 30, 2014 | |
Nature of Business | ' |
Nature of Business | ' |
Note 1—Nature of Business | |
Transocean Partners LLC (“Transocean Partners”, “we”, “us”, or “our”), a Marshall Islands limited liability company, was formed on February 6, 2014, by Transocean Partners Holdings Limited, a wholly owned subsidiary of Transocean Ltd. (together with its affiliates, unless the context requires otherwise, “Transocean” or “Parent”), to own, operate and acquire modern, technologically advanced offshore drilling rigs. The drilling units in our fleet include the ultra-deepwater drillships Discoverer Inspiration and Discoverer Clear Leader and the ultra-deepwater semisubmersible Development Driller III, which are located in the United States (“U.S.”) Gulf of Mexico. | |
On July 29, 2014, we entered into a contribution agreement with the Parent that gave effect to certain formation transactions, including the Parent’s transfer of a 51 percent ownership interest in each of the entities that own and operate the drilling units in our fleet (each individually, a “RigCo”, and collectively, the “RigCos”). The Parent holds the remaining 49 percent ownership interest in the RigCos. We completed the formation transactions on August 5, 2014. | |
On July 31, 2014, we announced the pricing of the initial public offering of our common units representing limited liability company interests, which began trading on the New York Stock Exchange under the ticker symbol “RIGP,” for $22.00 per unit. On August 5, 2014, we completed the initial public offering of 20.1 million common units, including 2.6 million common units sold pursuant to the exercise in full of the underwriters’ option to purchase additional common units, which represented a 29.2 percent limited liability company interest in Transocean Partners. The Parent holds the remaining 21.3 million common units and 27.6 million subordinated units, which collectively represented a 70.8 percent limited liability company interest. As a result of the offering, the Parent received net cash proceeds of $416 million, net of $27 million for underwriting discounts and commissions and other offering costs. | |
The Transocean Partners LLC Predecessor (the “Predecessor”) represents 100 percent of the combined results of operations, assets and liabilities of the drilling units in the fleet (the “Predecessor Business”) prior to completion of the formation transactions and initial public offering on August 5, 2014. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
Note 2—Significant Accounting Policies | |
Presentation—For periods prior to August 5, 2014, the condensed combined financial information of the Predecessor was derived from Transocean’s accounting records. The condensed combined financial information reflects the combined results of operations, financial position and cash flows of the Predecessor Business as if such operations and assets had been combined for all periods presented. All transactions among the Predecessor Business within the Predecessor have been eliminated. | |
Transocean uses a centralized approach to treasury services to perform cash management for the operations of its affiliates. The Predecessor transferred the cash generated and used by its operations to Transocean, and Transocean funded the Predecessor’s operating and investing activities as needed. The Predecessor had no bank accounts, and Transocean did not allocate its cash and cash equivalents to the Predecessor. Accordingly, the Predecessor’s transfers of cash to and from Transocean’s treasury were presented as net distributions to Parent on our condensed consolidated statements of equity and in our financing activities on our condensed consolidated statements of cash flows. The Predecessor’s results of operations do not include any interest expense for intercompany cash advances from Transocean, since Transocean did not historically allocate interest expense for intercompany advances to the Predecessor. | |
For the periods following August 5, 2014, the condensed consolidated financial statements reflect our consolidated results of operations, financial position and cash flows, which we have prepared as follows: | |
· Our condensed consolidated statements of operations for the three and nine months ended September 30, 2014 consists of the consolidated results of operations of Transocean Partners for the period from August 5, 2014 through September 30, 2014 and the combined results of operations of the Predecessor for the beginning of the respective period through August 4, 2014. Our condensed consolidated statements of operations for the three and nine months ended September 30, 2013 consists entirely of the combined results of operations of the Predecessor. | |
· Our condensed consolidated balance sheet at September 30, 2014 consists of the consolidated balances of Transocean Partners. Our condensed consolidated balance sheet at December 31, 2013 consists of the combined balances of the Predecessor. | |
· Our condensed consolidated statements of cash flows for the three and nine months ended September 30, 2014 consists of the consolidated cash flows of Transocean Partners for the period from August 5, 2014 through September 30, 2014 and the combined cash flows of the Predecessor for the beginning of the respective period through August 4, 2014. Our condensed consolidated statements of cash flows for the three and nine months ended September 30, 2013 consists entirely of the combined cash flows of the Predecessor. | |
· Our condensed consolidated statements of equity for the nine months ended September 30, 2014 consists of the consolidated activity of Transocean Partners during and following the formation on August 5, 2014 and the combined activity of the Predecessor through August 4, 2014. Our condensed consolidated statements of equity for the nine months ended September 30, 2013 consists entirely of the combined activity of the Predecessor. | |
We have presented our assets and liabilities at historical cost because the Predecessor transferred to us such assets and liabilities in formation transactions completed under common control within the Transocean consolidated group. | |
We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to such rules and regulations, these financial statements do not include all disclosures required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. Such adjustments are considered to be of a normal recurring nature unless otherwise noted. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future period. The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the Predecessor’s audited combined financial statements and notes thereto as of December 31, 2013 and 2012 and for each of the two years in the period ended December 31, 2013. | |
Accounting estimates—To prepare financial statements in accordance with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to our materials and supplies obsolescence, property and equipment, goodwill and drilling contract intangible liability, income taxes, allocated costs and related party transactions. We base our estimates and assumptions on historical experience and on various other factors we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from such estimates. | |
Fair value measurements—We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable. | |
Allocated indirect and overhead costs—The Predecessor’s combined results of operations included allocated indirect and overhead costs for certain functions historically performed by Transocean and not previously allocated to the Predecessor Business, including allocations of indirect operating and maintenance costs and expenses for onshore operational support services such as engineering, procurement and logistics and general and administrative costs and expenses related to executive oversight, accounting, treasury, tax, legal and information technology. | |
In the three and nine months ended September 30, 2014, the Predecessor recognized such allocated operating and maintenance costs of $2 million and $14 million, respectively, including $1 million and $11 million, respectively, for personnel costs. In the three and nine months ended September 30, 2014, the Predecessor recognized such allocated general and administrative costs of less than $1 million and $6 million, respectively, including less than $1 million and $4 million, respectively, for personnel costs. | |
In the three and nine months ended September 30, 2013, the Predecessor recognized such allocated operating and maintenance costs of $7 million and $22 million, respectively, including $6 million and $17 million, respectively, for personnel costs. In the three and nine months ended September 30, 2013, the Predecessor recognized such allocated general and administrative costs of $2 million and $7 million, respectively, including $1 million and $4 million, respectively, for personnel costs. | |
Cash and cash equivalents—Cash equivalents are highly liquid debt instruments with original maturities of three months or less that may include time deposits with commercial banks that have high credit ratings, U.S. Treasury and government securities, Eurodollar time deposits, certificates of deposit and commercial paper. We may also invest excess funds in no-load, open-ended, management investment trusts. Such management trusts invest exclusively in high-quality money market instruments. | |
Accounts receivable—We record long-term accounts receivable at their present value and recognize interest income using the effective interest method through the date of payment. At September 30, 2014 and December 31, 2013, the aggregate carrying amount of the long-term accounts receivable was $12 million and $22 million, respectively, recorded in other assets, which had weighted average effective interest rates of 11 percent and 10 percent, respectively. | |
Subsequent events—We evaluate subsequent events through the time of our filing on the date we issue the financial statements. See Note 12—Subsequent Events. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | ' |
Note 3—New Accounting Pronouncements | |
Recently adopted accounting standards | |
Income taxes—Effective January 1, 2014, we adopted the accounting standards update that requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if net settlement is required or expected. The update is effective for interim and annual periods beginning on or after December 15, 2013. Our adoption did not have a material effect on our condensed consolidated balance sheets or the disclosures contained in the notes to condensed consolidated financial statements. | |
Recently issued accounting standards | |
Revenue from contracts with customers—Effective January 1, 2017, we will adopt the accounting standards update that requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update is effective for interim and annual periods beginning on or after December 15, 2016. We are evaluating the requirements to determine the effect such requirements may have on our revenue recognition policies. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
Note 4—Income Taxes | ||||||||
Tax rate—We are organized as a limited liability company under the laws of The Republic of the Marshall Islands and are a resident in the United Kingdom (“U.K.”) for taxation purposes. We will be treated as a corporation for U.S. federal income tax purposes. Certain of our controlled affiliates are subject to taxation in the jurisdictions in which they are organized, conduct business or own assets. For this purpose, “controlled affiliates” include the RigCos. | ||||||||
The Republic of the Marshall Islands—Because we and our controlled affiliates do not conduct business or operations in The Republic of the Marshall Islands, neither we nor our controlled affiliates will be subject to income, capital gains, profits or other taxation under current Marshall Islands law. As a result, any distributions from our controlled affiliates are not subject to Marshall Islands taxation. | ||||||||
United Kingdom—We are a resident of the U.K. for taxation purposes. We expect that any distributions from our controlled affiliates generally will be exempt from taxation in the U.K. under the applicable exemption for distributions from subsidiaries. | ||||||||
United States—We have elected to be treated as a corporation for U.S. federal income tax purposes. As a result, we are subject to U.S. federal income tax to the extent we earn income from U.S. sources or income that is treated as effectively connected with the conduct of a trade or business in the U.S. We have controlled affiliates that conduct drilling operations in the U.S. Gulf of Mexico that are subject to taxation by the U.S. on their net income. | ||||||||
Cayman Islands—The Cayman Islands will not impose any income, capital gains, profits, withholding or other taxation on us, our controlled affiliates or on any distributions we or they may make. | ||||||||
Effective upon completion of the formation transactions, our provision for income taxes are computed based on the laws and rates applicable in the jurisdictions in which we operate and earn income. Our Predecessor’s provision for income taxes was prepared on a separate return basis with consideration to the laws and rates applicable in the jurisdictions in which the Predecessor’s Business operated and earned income. | ||||||||
Our Predecessor’s income tax provision was based on the tax structure of Transocean Ltd., a holding company and Swiss resident, which is exempt from cantonal and communal income tax in Switzerland, but is subject to Swiss federal income tax. At the federal level, qualifying net dividend income and net capital gains on the sale of qualifying investments in subsidiaries are exempt from Swiss federal income tax. Consequently, Transocean Ltd.’s dividends from its subsidiaries and capital gains from sales of investments in its subsidiaries are exempt from Swiss federal income tax. | ||||||||
In the nine months ended September 30, 2014 and 2013, our annual effective tax rate was 8.6 percent and the Predecessor’s annual effective tax rate was 10.7 percent, respectively. For the nine months ended September 30, 2014, this rate was based on income before income taxes for each period after adjusting for various discrete items, including certain adjustments of less than $1 million to prior period tax expense. | ||||||||
Unrecognized tax benefits—The liabilities related to the unrecognized tax benefits, including related interest and penalties that were recognized as a component of income tax expense, were as follows (in millions): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Unrecognized tax benefits, excluding interest and penalties | $ | — | $ | 12 | ||||
Interest and penalties | — | 1 | ||||||
Unrecognized tax benefits, including interest and penalties | $ | — | $ | 13 | ||||
The Predecessor’s unrecognized tax benefits balance at December 31, 2013 arose in legal entities that were not transferred to us in the formation transactions. | ||||||||
In the year ending December 31, 2014, it is reasonably possible that the existing liabilities for unrecognized tax benefits could increase or decrease primarily due to the progression of open audits. However, we cannot reasonably estimate a range of potential changes in the Predecessor’s existing liabilities for unrecognized tax benefits due to various uncertainties, such as the unresolved nature of various audits. | ||||||||
Tax returns—The Predecessor’s results were reported in federal and local tax returns filed in the U.S. and Switzerland. With few exceptions, the Predecessor’s results were no longer subject to examinations of tax matters for years prior to 2010. |
Earnings_per_unit
Earnings per unit | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings per unit | ' | |||||||||||||
Earnings per unit | ' | |||||||||||||
Note 5—Earnings per unit | ||||||||||||||
Our basic and diluted earnings per unit were the same because we did not have any potentially dilutive units outstanding for the periods presented. We apply the two-class method of calculating earnings per unit for our participating securities, including our common units, subordinated units and our incentive distribution rights. The numerator and denominator used for the computation of basic and diluted per unit earnings, were as follows (in millions, except per share data): | ||||||||||||||
Three months | Nine months | |||||||||||||
ended | ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator for earnings per unit | ||||||||||||||
Net income attributable to controlling interest | $ | 17 | $ | — | $ | 17 | $ | — | ||||||
Net income available to common unitholders | $ | 10 | $ | — | $ | 10 | $ | — | ||||||
Net income available to subordinated unitholders | $ | 7 | $ | — | $ | 7 | $ | — | ||||||
Denominator for earnings per unit | ||||||||||||||
Weighted-average common units outstanding | 41 | — | 41 | — | ||||||||||
Weighted-average subordinated units outstanding | 28 | — | 28 | — | ||||||||||
Earnings per unit | ||||||||||||||
Earnings per common unit | $ | 0.24 | $ | — | $ | 0.24 | $ | — | ||||||
Earnings per subordinated unit | $ | 0.24 | $ | — | $ | 0.24 | $ | — | ||||||
See Note 12-Subsequent Events. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2014 | |
Goodwill | ' |
Goodwill | ' |
Note 6—Goodwill | |
As of the closing of the formation transactions on August 5, 2014, Transocean allocated to us $356 million of goodwill based on the estimated fair value of our reporting unit relative to the estimated fair value of Transocean’s reporting unit immediately prior to the allocation and, as of such date, evaluated the allocated goodwill for impairment. Transocean estimated the fair value of our reporting unit using a variety of valuation methods, including the income and market approaches, by applying significant unobservable inputs, representative of a Level 3 fair value measurement, including assumptions related to the future performance of our reporting unit, such as future commodity prices, projected demand for our services, rig availability and dayrates. At September 30, 2014, the carrying amount of our goodwill was $356 million. | |
Prior to August 5, 2014, Transocean allocated to the Predecessor a portion of the carrying amount of its goodwill based on the estimated fair value of the Predecessor’s net property and equipment relative to the estimated fair value of the Transocean’s reporting unit, including the Predecessor’s net property and equipment. The goodwill allocated to the Predecessor as of January 1, 2012, the measurement date for this purpose, was $213 million. Transocean estimated the fair value of the Predecessor’s net property and equipment using a variety of valuation methods, including the income and market approaches, by applying significant unobservable inputs, representative of Level 3 fair value measurement, including assumptions related to the future performance of our reporting unit, such as future commodity prices, projected demand for our services, rig availability and dayrates. At December 31, 2013, the Predecessor’s goodwill was $213 million. |
Credit_Agreements
Credit Agreements | 9 Months Ended |
Sep. 30, 2014 | |
Credit Agreements | ' |
Credit Agreements | ' |
Note 7—Credit Agreements | |
Five-Year Revolving Credit Facility—On August 5, 2014, we entered into a credit agreement, which is scheduled to expire on August 5, 2019, with a Transocean affiliate to establish a committed $300 million five-year revolving credit facility that allows for uncommitted increases in amounts agreed to by the Transocean affiliate and us (the “Five-Year Revolving Credit Facility”). We may borrow under the Five-Year Revolving Credit Facility at either (1) the adjusted London Interbank Offered Rate (“LIBOR”) plus a margin (the “revolving credit facility margin”), which ranges from 1.625 percent to 2.250 percent based on our leverage ratio, as defined, or (2) the base rate specified in the credit agreement plus the revolving credit facility margin, less one percent per annum. Throughout the term of the Five-Year Revolving Credit Facility, we are required to pay a commitment fee on the daily unused amount of the underlying commitment, which ranges from 0.225 percent to 0.325 percent based on our leverage ratio, as defined. Among other things, the Five-Year Revolving Credit Facility includes limitations on creating liens, incurring subsidiary debt, transactions with affiliates, sale/leaseback transactions, mergers and the sale of substantially all assets. The Five-Year Revolving Credit Facility also includes a covenant imposing a maximum debt ratio, as defined in the agreement. Borrowings under the Five-Year Revolving Credit Facility are subject to acceleration upon the occurrence of an event of default. At September 30, 2014, based on our leverage ratio on that date, the revolving credit facility margin was 1.625 percent. At September 30, 2014, we had no borrowings outstanding and $300 million available borrowing capacity under the Five-Year Revolving Credit Facility. | |
Working capital note payable and customer receivables guaranty agreements—On July 29, 2014, we entered into agreements with a Transocean affiliate to establish a working capital note payable in the principal amount and for cash proceeds of $43 million that is due and payable at maturity on July 28, 2015. The working capital note payable bears interest at the adjusted one-month LIBOR plus a margin (the “working capital note margin”), which ranges from 1.625 percent to 2.250 percent based on our leverage ratio, as defined in the Five-Year Revolving Credit Facility. The principal amount may be repaid early without penalty, and amounts repaid cannot be reborrowed. At September 30, 2014, based on our leverage ratio on that date, the working capital note margin was 1.625 percent. | |
The proceeds from the 364-day working capital note were used as partial consideration for contributed working capital in connection with the acquisition of interests in the RigCos. In connection with the acquisition, Transocean agreed to guarantee the payment of any receivables held by the RigCos at the closing of the acquisition. In addition, the assignment and bill of sale agreements for the acquisition contains a true-up mechanism whereby we will pay Transocean for the amount by which our pro rata share of actual net working capital, as determined within 60 days after the acquisition, exceeds our pro rata share of estimated net working capital at the time of the acquisition, and Transocean will pay us if such actual net working capital is less than such estimated net working capital. At September 30, 2014, the outstanding principal amount under the working capital note payable was $43 million. At September 30, 2014, we estimated that the working capital exceeded the original estimate by approximately $6 million, and we recognized a liability for such amount, recorded in accounts payable to affiliates, with a corresponding reduction to members’ equity. | |
Former credit agreements—In March 2014, we entered into credit agreements with a Transocean affiliate establishing three credit facilities with an aggregate borrowing capacity of $300 million that was scheduled to expire on March 31, 2017. On August 5, 2014, we terminated the credit agreements. No borrowings were outstanding under the credit facilities at the time of termination. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 8—Commitments and Contingencies | |
Retained risk—Our fleet is covered under Transocean’s hull and machinery and excess liability insurance program, which is comprised of commercial market and captive insurance policies, and Transocean allocated to us the premium costs attributable to our fleet. Transocean renews the commercial and captive policies under its insurance program annually on May 1. At September 30, 2014, our drilling units had the insured value of approximately $2.0 billion under this program. Transocean does not generally carry, and we do not maintain, insurance coverage for loss of revenues. Through its wholly owned captive insurance company, Transocean generally retains the risk for losses resulting from physical damage to our fleet caused by named windstorms in the U.S. Gulf of Mexico, including liability for wreck removal costs. | |
Hull and machinery coverage—Transocean had hull and machinery insurance for physical damage to its drilling rigs, which included coverage for our fleet, for which it allocated to us the respective premium costs. We retained the risk for the deductibles, noted below, relating to physical damage insurance coverage for our fleet. At September 30, 2014, under its hull and machinery program, Transocean generally maintained a $125 million per occurrence deductible, limited to a maximum of $200 million per policy period. Of such $125 million per occurrence deductible, Transocean retained the risk of $115 million in excess of $10 million through its wholly owned captive insurance company, and we retained the risk of the $10 million per occurrence deductible. Subject to the same shared deductible, we also had coverage for an amount equal to 50 percent of a rig’s insured value for combined costs incurred to mitigate damage to a rig and wreck removal. Any excess wreck removal costs were generally covered to the extent of Transocean’s remaining excess liability coverage. | |
Excess liability coverage—Transocean had excess liability coverage insurance, which included coverage for our fleet, for which it allocated to us the respective premium costs. At September 30, 2014, Transocean carried $700 million of commercial market excess liability coverage, excluding deductibles and Transocean’s primary $50 million self-insured retention, noted below, which generally covered offshore risks such as personal injury, third-party property claims, and third-party non-crew claims, including wreck removal and pollution. Through its wholly owned captive insurance company, Transocean retained the risk of the primary $50 million excess liability coverage. We were covered under Transocean’s primary $50 million captive insurance placement noted above, and Transocean allocated to us the respective premium costs. The excess liability coverage had a separate $10 million per occurrence deductible on collision liability claims and a separate $5 million per occurrence deductible applicable to crew personal injury claims and other third-party non-crew claims. We and Transocean generally retained the risk for any liability losses in excess of $750 million. | |
Other insurance coverage—Transocean carries additional insurance, which included coverage for our drilling fleet, and Transocean allocated to us the respective premium costs. At September 30, 2014, Transocean carried $100 million of additional insurance that generally covered expenses that would otherwise be assumed by the well owner, such as costs to control the well, redrill expenses and pollution from the well. This additional insurance provided coverage for such expenses under circumstances in which we would have had legal or contractual liability arising from its gross negligence or willful misconduct. | |
Encumbered assets—Transocean had a $900 million three-year secured revolving credit facility established under a bank credit agreement dated October 25, 2012, that was scheduled to expire on October 25, 2015 (the “Transocean Three-Year Secured Revolving Credit Facility”). Transocean’s borrowings under the Transocean Three-Year Secured Revolving Credit Facility were secured by three of its ultra-deepwater floaters, including the ultra-deepwater drillship Discoverer Inspiration. At December 31, 2013, Transocean had no borrowings outstanding under the Transocean Three-Year Secured Revolving Credit Facility. At December 31, 2013, the aggregate carrying amount of the ultra-deepwater drillship Discoverer Inspiration was $706 million. On June 30, 2014, Transocean terminated the Transocean Three-Year Secured Revolving Credit Facility and the related security agreement with respect to the ultra-deepwater drillship Discoverer Inspiration. At September 30, 2014, we had no assets subject to liens or other encumbrances. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 9—Related Party Transactions | |
Formation agreements | |
Contribution agreement—On July 29, 2014, we entered into a contribution agreement with the Parent that gave effect to certain of the formation transactions, including the Parent’s transfer to us of a 51 percent ownership interest in each of the RigCos. In connection with the formation transactions under the contribution agreement, the Parent retained the obligation for the payment of the quarterly royalty fees under the dual-activity license agreement through the patent expiration. In the three and nine months ended September 30, 2014, we recognized patent expense of $3 million for fees paid by the Parent on our behalf with a corresponding entry to members’ equity (see “—Other agreements—dual activity license agreements”). | |
Governing documents—Upon completion of the formation transactions, we own a 51 percent ownership interest in each of the RigCos and control their operations and activities. The Parent holds the remaining 49 percent noncontrolling interest in each of the RigCos. In connection with the formation transactions, we and the Parent entered into governing documents for each of the RigCos that govern the ownership and management of each of the RigCos. Each of the RigCos is managed by its board of directors. Pursuant to such governing documents, we are able to control the election of these boards of directors as the majority interest owner. Subject to certain prerequisites under applicable law and the approval of the board of directors of each of the RigCos, each RigCo intends to transfer its available cash to its equityholders each quarter. Approval of the conflicts committee of our board of directors is required to amend the RigCos’ governing documents. | |
Master services and support agreements | |
Secondment agreements—On August 5, 2014, we entered into secondment agreements with certain Transocean affiliates to provide executives, rig crews and other personnel. All persons provided to us pursuant to the secondment agreements will remain on the payroll and benefit plans of Transocean but will be under our day-to-day control and management. We will reimburse Transocean for the pro rata gross payroll costs of each seconded employee in proportion to the time allocated to us by the seconded employee, including base pay, any incentive compensation and any benefits costs. We will also reimburse Transocean for any applicable unemployment taxes, social security taxes, workers compensation coverage and severance costs, and any foreign equivalents of such taxes, in the amount allocable to the secondment. Transocean will invoice us quarterly for amounts payable under the secondment agreements. The secondment agreements may be terminated by Transocean or us upon 90 days written notice. In the three and nine months ended September 30, 2014, we recognized costs of $14 million, recorded in operating and maintenance costs and expenses, for personnel costs under the secondment agreements. | |
Support agreement—On August 5, 2014, we entered into a support agreement with certain Transocean affiliates to provide the services of certain administrative professionals, including our chief financial officer. The persons providing such services to us pursuant to the support agreement will remain on Transocean’s payroll and will perform their services on or at Transocean’s facilities. Transocean will be solely responsible for all matters pertaining to their employment, compensation and discharge. Such persons may spend only a portion of their time providing services to us and they may be engaged in other work separate from support services on our behalf. We will reimburse Transocean for the pro rata expenses associated with the compensation and benefits of all persons covered by the support agreement according to the time spent by each person in providing us support services as well as certain direct costs and expenses incurred in offering the services. The support agreement may be terminated by mutual agreement of Transocean and us. In the three and nine months ended September 30, 2014, we recognized costs of less than $1 million, recorded in operating and maintenance costs and expenses, for services under the support agreement. | |
Master services agreements—On August 5, 2014, we entered into master services agreements with certain Transocean affiliates, pursuant to which Transocean affiliates will provide certain administrative, technical and non-executive management services to us. Transocean affiliates will also provide insurance coverage to us commensurate with that provided to the Predecessor. The agreements have initial terms of five years. Each month, we will reimburse Transocean for the cost of all direct labor, materials and expenses incurred in connection with the provision of these services, plus an allocated portion of Transocean’s shared and pooled direct costs, indirect costs and general and administrative costs as determined by Transocean’s internal accounting procedures. In addition, we will pay Transocean a fee equal to the greater of (i) five percent of its costs and expenses incurred in connection with providing services to us for the month or, in the case of the provision of capital spares or inventory, a four percent markup on the capital spare or inventory plus a four percent markup on the allocable share of the costs of providing such services and, (ii) the markup required by applicable transfer pricing rules. If Transocean incurs costs and expenses from third parties in the course of subcontracting the performance of services, we must reimburse Transocean at cost and is not required to pay a service fee, unless required by applicable transfer pricing rules. Amounts payable under the master services agreements must be paid within 30 days after Transocean submits to us invoices for such fees, costs and expenses. Each of the master services agreements may be terminated prior to the end of its term by either Transocean or us within 90 days written notice under certain circumstances. In the three and nine months ended September 30, 2014, we recognized costs of $16 million, recorded in operating and maintenance costs and expenses, and $2 million, recorded in general and administrative costs and expenses, for services under the master services agreement. In the three and nine months ended September 30, 2014, we acquired $7 million of materials and supplies purchased through the procurement services of Transocean Offshore Deepwater Drilling Inc. (“TODDI”). In the three and nine months ended September 30, 2014, we recognized insurance costs of $2 million, recorded in operating and maintenance costs and expenses. | |
Former master services agreements—Under the former master services agreement with TODDI, the Predecessor obtained services and assistance for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services. In the three and nine months ended September 30, 2014, the Predecessor recognized costs of $5 million and $24 million, respectively, recorded in operating and maintenance costs and expenses, for such services and assistance. In the three and nine months ended September 30, 2013, the Predecessor recognized costs of $9 million and $26 million, respectively, recorded in operating and maintenance costs and expenses, for such services and assistance. | |
Under the former master services agreement, TODDI purchased materials and supplies for the Predecessor’s drilling operations through its procurement services. In the three and nine months ended September 30, 2014, the Predecessor paid $5 million and $27 million, respectively, settled through its net investment, for materials and supplies purchased through TODDI’s procurement services. In the three and nine months ended September 30, 2013, the Predecessor paid $11 million and $28 million, respectively, settled through its net investment, for materials and supplies purchased through TODDI’s procurement services. | |
Also under the former master services agreement, TODDI administered insurance coverage with and processed claims through Transocean’s commercial market and captive insurance policies (see Note 8—Commitments and Contingencies). In the three and nine months ended September 30, 2014, the Predecessor recognized allocated insurance costs of $2 million and $8 million, respectively, recorded in operating and maintenance costs and expenses. In the three and nine months ended September 30, 2013, the Predecessor recognized allocated insurance costs of $4 million and $10 million, respectively, recorded in operating and maintenance costs and expenses. | |
TODDI and its affiliates charged the Predecessor under the former master services agreement for crew personnel provided to the Predecessor to operate its drilling rigs. In the three and nine months ended September 30, 2014, the Predecessor recognized costs of $9 million and $57 million, respectively, recorded in operating and maintenance costs and expenses, for such personnel costs. In the three and nine months ended September 30, 2013, the Predecessor recognized costs of $24 million and $70 million, respectively, recorded in operating and maintenance costs and expenses, for such personnel costs. In the three and nine months ended September 30, 2014, the Predecessor recognized costs of less than $1 million and $2 million, respectively, recorded in operating and maintenance costs and expenses, for the proportion of the benefit costs that covered the personnel supporting the Predecessor’s operations. In the three and nine months ended September 30, 2013, the Predecessor recognized costs of $2 million and $7 million, respectively, recorded in operating and maintenance costs and expenses, for the proportion of the benefit costs that covered the personnel supporting the Predecessor’s operations. | |
Other agreements | |
Omnibus agreement—On August 5, 2014, the Parent and we entered into an omnibus agreement (the “Omnibus Agreement”) with certain Transocean affiliates. Under the Omnibus Agreement, Transocean granted us a right of first offer for its remaining ownership interests in each of the RigCos should Transocean decide to sell such interests. Transocean also will be required to offer us within five years of the effective date of the agreement, the opportunity to purchase, subject to requisite government and other third-party consents, not less than a 51 percent interest in any four of the following six ultra-deepwater drillships: Deepwater Invictus, Deepwater Thalassa, Deepwater Proteus, Deepwater Pontus, Deepwater Poseidon and Deepwater Conqueror. The purchase price for each drillship will be equal to the greater of the fair market value, taking into account the anticipated cash flows under the associated drilling contracts, or the all-in construction cost, plus transaction costs. Transocean will select which of these drillships it will offer to us, the timing of the offers and whether it will offer us the opportunity to purchase a greater than 51 percent interest in any offered drillship. In addition, the Parent agreed not to acquire, own or operate any new drilling rig or contract for any drilling rig, in each case that was constructed in 2009 or later and is operating under a contract for five or more years (“Five-Year Drilling Rigs”), subject to certain exceptions. We also agreed not to acquire, own, operate, or contract for any drilling rig that is not a Five-Year Drilling Rig, subject to certain exceptions. | |
Transocean agreed to indemnify us for a period of five years through August 5, 2019 against certain environmental and human health and safety liabilities with respect to the assets contributed or sold to us to the extent arising prior to the time they were contributed or sold to us. Liabilities resulting from a change in law after the closing of the offering are excluded from the environmental indemnity. The indemnity coverage provided by Transocean for such environmental and human health and safety liabilities will not exceed the aggregate amount of $10 million. No claim for indemnification may be made unless the aggregate dollar amount of all claims exceeds $500,000, in which case Transocean is liable for claims only to the extent such aggregate amount exceeds $500,000. | |
In addition, Transocean agreed to indemnify us against any liabilities arising out of the Macondo well incident occurring prior to our initial public offering and any liabilities, other than taxes, arising from Transocean’s or its subsidiaries’ failure to comply with the Consent Decree or the EPA Agreement, each as it is defined in the Omnibus Agreement, or any similar decree or agreement. The indemnity coverage provided by Transocean related to the Macondo well incident, the Consent Decree, the EPA Agreement or any similar decree or agreement is unlimited. However, these indemnities do not cover or include any amount of consequential damages, including lost profits or revenues. | |
Transocean also agreed to indemnify us to the full extent of any liabilities related to: | |
· certain defects in title to Transocean’s assets contributed or sold to the RigCos and any failure to obtain, prior to the time they were contributed, certain consents and permits necessary to conduct, own and operate such assets, which liabilities arise within three years after the closing of the offering; | |
· any judicial determination substantially to the effect that the Transocean affiliate that transferred any of our initial assets to us pursuant to the contribution agreement did not receive reasonably equivalent value in exchange therefor or was rendered insolvent by such transfer; | |
· tax liabilities attributable to the operation of the assets contributed or sold to the RigCos prior to the closing of the offering; and | |
· any lost revenue, up to $100 million, arising out of the failure to receive an operating dayrate from Chevron for Discoverer Clear Leader, for the period commencing on the closing date of the offering through the completion of the rig’s 2014 special periodic survey, which is expected to occur during the three months ending December 31, 2014. | |
In the three and nine months ended September 30, 2014, we submitted an indemnification claim for $9 million associated with lost revenues, and we recognized a receivable from affiliate with a corresponding entry to members’ equity. | |
Dual-activity license agreements—All three of our drilling units are equipped with Transocean’s patented dual-activity technology. Dual-activity technology employs structures, equipment and techniques using two drilling stations within a dual derrick to perform drilling tasks. Dual-activity technology allows our rigs to perform simultaneous drilling tasks in a parallel rather than sequential manner and reduces critical path activity, improving efficiency in both exploration and development drilling. The Predecessor entered into license agreements with TODDI for the use of the patented technology through the expiration of the patents in May 2016. Under the license agreements, the Predecessor paid to TODDI an aggregate original license cost of $20 million, recorded in other assets. In the three and nine months ended September 30, 2014, the Predecessor recognized amortization of the license costs of less than $1 million and $2 million, respectively, recorded in operating and maintenance costs and expenses. In the three and nine months ended September 30, 2013, the Predecessor recognized amortization of the license costs of less than $1 million and $2 million, respectively, recorded in operating and maintenance costs and expenses. At September 30, 2014 and December 31, 2013, the carrying amount of the deferred license cost was $5 million and $7 million, respectively. | |
Under the license agreements, the Predecessor also paid to TODDI quarterly royalty fees of between 3 percent and 5 percent of revenues. In the three and nine months ended September 30, 2014, the Predecessor recognized royalty fees of $2 million and $16 million, respectively, recorded in operating and maintenance costs and expenses. In the three and nine months ended September 30, 2013, the Predecessor recognized royalty fees of $5 million and $14 million, respectively, recorded in operating and maintenance costs and expenses. Under the contribution agreement, the Parent retained the obligation for the payment of the quarterly royalty fees (see “—Formation agreements—contribution agreement”). | |
Credit agreements—In March 2014, we entered into credit agreements with TODDI, establishing three credit facilities with an aggregate borrowing capacity of $300 million, and effective as of August 5, 2014, we terminated these credit agreements. On July 29, 2014, we entered into agreements with a Transocean affiliate to establish a working capital note payable in the principal amount and for cash proceeds of $43 million. On August 5, 2014, we entered into the Five-Year Revolving Credit Facility with a Transocean affiliate. See Note 7—Credit Agreements. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Note 10—Supplemental Cash Flow Information | ||||||||
Additional cash flow information was as follows (in millions): | ||||||||
Nine months ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-cash investing and financing activities | ||||||||
Predecessor’s capital transfers to affiliates (a) | $ | (23 | ) | $ | — | |||
Predecessor’s capital transfers from affiliates (b) | 10 | 1 | ||||||
Contribution for parent payment of dual-activity patent royalties (c) | 3 | — | ||||||
Contribution for parent indemnification of lost revenues (d) | 9 | — | ||||||
Distribution payable for working capital adjustment (e) | (6 | ) | — | |||||
(a) In the nine months ended September 30, 2014, the Predecessor transferred to the Parent’s other drilling units certain equipment with an aggregate net carrying amount of $23 million, primarily all of which was from Development Driller III, and the Predecessor recorded the non-cash investing activity with a corresponding entry to its net investment. | ||||||||
(b) In the nine months ended September 30, 2014 and 2013, the Parent transferred to the Predecessor certain equipment with an aggregate net carrying amount of $10 million and $1 million, respectively, primarily all of which was to Development Driller III, and the Predecessor recorded the non-cash investing activity with a corresponding entry to its net investment. | ||||||||
(c) In the nine months ended September 30, 2014, in connection with Transocean’s payment of $3 million of royalty fees under our dual-activity license agreements with a Transocean affiliate, we recognized non-cash operating expense with a corresponding increase to members’ equity. | ||||||||
(d) In the nine months ended September 30, 2014, we submitted an indemnification claim for $9 million associated with lost revenues, and we recognized a receivable from affiliate with a corresponding increase to members’ equity. | ||||||||
(e) Within 60 days after the formation transactions, under the assignment and bill of sale agreements, we agreed to pay to or receive from a Transocean affiliate the amount by which our pro rata share of actual working capital at the time of the acquisition exceeds or falls below such estimated net working capital at the time of the acquisition. At September 30, 2014, we estimated that the working capital exceeded the original estimate by approximately $6 million, and we recognized a liability for such amount, recorded in accounts payable to affiliates, with a corresponding reduction to members’ equity. See Note 7—Credit Agreements. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Financial Instruments | ' | |||||||||||||
Note 11—Financial Instruments | ||||||||||||||
The carrying amounts and fair values of our financial instruments were as follows: | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
amount | value | amount | value | |||||||||||
Cash and cash equivalents | $ | 49 | $ | 49 | $ | — | $ | — | ||||||
Working capital note payable to affiliate | 43 | 43 | — | — | ||||||||||
We estimated the fair value of each class of financial instruments, for which estimating fair value is practicable, by applying the following methods and assumptions: | ||||||||||||||
Cash and cash equivalents—The carrying amount of cash and cash equivalents represents the historical cost, plus accrued interest, which approximates fair value because of the short maturities of those investments. We measured the estimated fair value of our cash equivalents using significant other observable inputs, representative of a Level 2, fair value measurement, including the net asset values of the investments. At September 30, 2014, the aggregate carrying amount of our cash equivalents was $43 million. | ||||||||||||||
Working capital note payable to affiliate—The carrying amount of the working capital note payable approximates fair value due to the short term nature of the instrument. We measured the estimated fair value of our working capital note payable using significant unobservable inputs, representative of a Level 3, fair value measurement, including the credit spreads that would be considered at market for a borrower with our credit ratings. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 12—Subsequent Events | |
Distribution to unitholders—On November 4, 2014, our board of directors approved a distribution of $0.2246 per unit, representing an aggregate cash payment of $15 million to our unitholders, of which $11 million will be paid to the Transocean unitholder. We expect to pay the distribution on November 24, 2014 to unitholders of record as of November 17, 2014. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Significant Accounting Policies | ' |
Presentation | ' |
Presentation—For periods prior to August 5, 2014, the condensed combined financial information of the Predecessor was derived from Transocean’s accounting records. The condensed combined financial information reflects the combined results of operations, financial position and cash flows of the Predecessor Business as if such operations and assets had been combined for all periods presented. All transactions among the Predecessor Business within the Predecessor have been eliminated. | |
Transocean uses a centralized approach to treasury services to perform cash management for the operations of its affiliates. The Predecessor transferred the cash generated and used by its operations to Transocean, and Transocean funded the Predecessor’s operating and investing activities as needed. The Predecessor had no bank accounts, and Transocean did not allocate its cash and cash equivalents to the Predecessor. Accordingly, the Predecessor’s transfers of cash to and from Transocean’s treasury were presented as net distributions to Parent on our condensed consolidated statements of equity and in our financing activities on our condensed consolidated statements of cash flows. The Predecessor’s results of operations do not include any interest expense for intercompany cash advances from Transocean, since Transocean did not historically allocate interest expense for intercompany advances to the Predecessor. | |
For the periods following August 5, 2014, the condensed consolidated financial statements reflect our consolidated results of operations, financial position and cash flows, which we have prepared as follows: | |
· Our condensed consolidated statements of operations for the three and nine months ended September 30, 2014 consists of the consolidated results of operations of Transocean Partners for the period from August 5, 2014 through September 30, 2014 and the combined results of operations of the Predecessor for the beginning of the respective period through August 4, 2014. Our condensed consolidated statements of operations for the three and nine months ended September 30, 2013 consists entirely of the combined results of operations of the Predecessor. | |
· Our condensed consolidated balance sheet at September 30, 2014 consists of the consolidated balances of Transocean Partners. Our condensed consolidated balance sheet at December 31, 2013 consists of the combined balances of the Predecessor. | |
· Our condensed consolidated statements of cash flows for the three and nine months ended September 30, 2014 consists of the consolidated cash flows of Transocean Partners for the period from August 5, 2014 through September 30, 2014 and the combined cash flows of the Predecessor for the beginning of the respective period through August 4, 2014. Our condensed consolidated statements of cash flows for the three and nine months ended September 30, 2013 consists entirely of the combined cash flows of the Predecessor. | |
· Our condensed consolidated statements of equity for the nine months ended September 30, 2014 consists of the consolidated activity of Transocean Partners during and following the formation on August 5, 2014 and the combined activity of the Predecessor through August 4, 2014. Our condensed consolidated statements of equity for the nine months ended September 30, 2013 consists entirely of the combined activity of the Predecessor. | |
We have presented our assets and liabilities at historical cost because the Predecessor transferred to us such assets and liabilities in formation transactions completed under common control within the Transocean consolidated group. | |
We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to such rules and regulations, these financial statements do not include all disclosures required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. Such adjustments are considered to be of a normal recurring nature unless otherwise noted. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future period. The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the Predecessor’s audited combined financial statements and notes thereto as of December 31, 2013 and 2012 and for each of the two years in the period ended December 31, 2013. | |
Accounting estimates | ' |
Accounting estimates—To prepare financial statements in accordance with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to our materials and supplies obsolescence, property and equipment, goodwill and drilling contract intangible liability, income taxes, allocated costs and related party transactions. We base our estimates and assumptions on historical experience and on various other factors we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from such estimates. | |
Fair value measurements | ' |
Fair value measurements—We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable. | |
Allocated indirect and overhead costs | ' |
Allocated indirect and overhead costs—The Predecessor’s combined results of operations included allocated indirect and overhead costs for certain functions historically performed by Transocean and not previously allocated to the Predecessor Business, including allocations of indirect operating and maintenance costs and expenses for onshore operational support services such as engineering, procurement and logistics and general and administrative costs and expenses related to executive oversight, accounting, treasury, tax, legal and information technology. | |
In the three and nine months ended September 30, 2014, the Predecessor recognized such allocated operating and maintenance costs of $2 million and $14 million, respectively, including $1 million and $11 million, respectively, for personnel costs. In the three and nine months ended September 30, 2014, the Predecessor recognized such allocated general and administrative costs of less than $1 million and $6 million, respectively, including less than $1 million and $4 million, respectively, for personnel costs. | |
In the three and nine months ended September 30, 2013, the Predecessor recognized such allocated operating and maintenance costs of $7 million and $22 million, respectively, including $6 million and $17 million, respectively, for personnel costs. In the three and nine months ended September 30, 2013, the Predecessor recognized such allocated general and administrative costs of $2 million and $7 million, respectively, including $1 million and $4 million, respectively, for personnel costs. | |
Cash and cash equivalents | ' |
Cash and cash equivalents—Cash equivalents are highly liquid debt instruments with original maturities of three months or less that may include time deposits with commercial banks that have high credit ratings, U.S. Treasury and government securities, Eurodollar time deposits, certificates of deposit and commercial paper. We may also invest excess funds in no-load, open-ended, management investment trusts. Such management trusts invest exclusively in high-quality money market instruments. | |
Accounts receivable | ' |
Accounts receivable—We record long-term accounts receivable at their present value and recognize interest income using the effective interest method through the date of payment. At September 30, 2014 and December 31, 2013, the aggregate carrying amount of the long-term accounts receivable was $12 million and $22 million, respectively, recorded in other assets, which had weighted average effective interest rates of 11 percent and 10 percent, respectively. | |
Subsequent events | ' |
Subsequent events—We evaluate subsequent events through the time of our filing on the date we issue the financial statements. See Note 12—Subsequent Events. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Taxes | ' | |||||||
Schedule of unrecognized tax benefits, including related interest and penalties | ' | |||||||
The liabilities related to the unrecognized tax benefits, including related interest and penalties that were recognized as a component of income tax expense, were as follows (in millions): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Unrecognized tax benefits, excluding interest and penalties | $ | — | $ | 12 | ||||
Interest and penalties | — | 1 | ||||||
Unrecognized tax benefits, including interest and penalties | $ | — | $ | 13 |
Earnings_per_unit_Tables
Earnings per unit (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings per unit | ' | |||||||||||||
Schedule of numerator and denominator used for the computation of basic and diluted per unit earnings | ' | |||||||||||||
Three months | Nine months | |||||||||||||
ended | ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator for earnings per unit | ||||||||||||||
Net income attributable to controlling interest | $ | 17 | $ | — | $ | 17 | $ | — | ||||||
Net income available to common unitholders | $ | 10 | $ | — | $ | 10 | $ | — | ||||||
Net income available to subordinated unitholders | $ | 7 | $ | — | $ | 7 | $ | — | ||||||
Denominator for earnings per unit | ||||||||||||||
Weighted-average common units outstanding | 41 | — | 41 | — | ||||||||||
Weighted-average subordinated units outstanding | 28 | — | 28 | — | ||||||||||
Earnings per unit | ||||||||||||||
Earnings per common unit | $ | 0.24 | $ | — | $ | 0.24 | $ | — | ||||||
Earnings per subordinated unit | $ | 0.24 | $ | — | $ | 0.24 | $ | — |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Schedule of additional cash flow information | ' | |||||||
Nine months ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-cash investing and financing activities | ||||||||
Predecessor’s capital transfers to affiliates (a) | $ | (23 | ) | $ | — | |||
Predecessor’s capital transfers from affiliates (b) | 10 | 1 | ||||||
Contribution for parent payment of dual-activity patent royalties (c) | 3 | — | ||||||
Contribution for parent indemnification of lost revenues (d) | 9 | — | ||||||
Distribution payable for working capital adjustment (e) | (6 | ) | — | |||||
(a) In the nine months ended September 30, 2014, the Predecessor transferred to the Parent’s other drilling units certain equipment with an aggregate net carrying amount of $23 million, primarily all of which was from Development Driller III, and the Predecessor recorded the non-cash investing activity with a corresponding entry to its net investment. | ||||||||
(b) In the nine months ended September 30, 2014 and 2013, the Parent transferred to the Predecessor certain equipment with an aggregate net carrying amount of $10 million and $1 million, respectively, primarily all of which was to Development Driller III, and the Predecessor recorded the non-cash investing activity with a corresponding entry to its net investment. | ||||||||
(c) In the nine months ended September 30, 2014, in connection with Transocean’s payment of $3 million of royalty fees under our dual-activity license agreements with a Transocean affiliate, we recognized non-cash operating expense with a corresponding increase to members’ equity. | ||||||||
(d) In the nine months ended September 30, 2014, we submitted an indemnification claim for $9 million associated with lost revenues, and we recognized a receivable from affiliate with a corresponding increase to members’ equity. | ||||||||
(e) Within 60 days after the formation transactions, under the assignment and bill of sale agreements, we agreed to pay to or receive from a Transocean affiliate the amount by which our pro rata share of actual working capital at the time of the acquisition exceeds or falls below such estimated net working capital at the time of the acquisition. At September 30, 2014, we estimated that the working capital exceeded the original estimate by approximately $6 million, and we recognized a liability for such amount, recorded in accounts payable to affiliates, with a corresponding reduction to members’ equity. See Note 7—Credit Agreements. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Schedule of carrying amounts and fair values of our financial instruments | ' | |||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
amount | value | amount | value | |||||||||||
Cash and cash equivalents | $ | 49 | $ | 49 | $ | — | $ | — | ||||||
Working capital note payable to affiliate | 43 | 43 | — | — | ||||||||||
Nature_of_Business_Details
Nature of Business (Details) (USD $) | Jul. 31, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Jul. 29, 2014 | Jul. 29, 2014 | Aug. 05, 2014 |
In Millions, except Per Share data, unless otherwise specified | Transocean member | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Predecessor Business | |
Transocean member | ||||||
Ownership percentage | ' | ' | 51.00% | 51.00% | 49.00% | ' |
Offer price of common units (in dollars per share) | $22 | ' | ' | ' | ' | ' |
Common units offered in initial public offering | ' | 20.1 | ' | ' | ' | ' |
Common units purchased by underwriters upon exercise of option | ' | 2.6 | ' | ' | ' | ' |
Percentage of common units sold in public offering and purchased by underwriters | ' | 29.20% | ' | ' | ' | ' |
Common units held by parent | ' | 21.3 | ' | ' | ' | ' |
Subordinated units held by parent | ' | 27.6 | ' | ' | ' | ' |
Percentage of limited liability company interest held by parent | ' | 70.80% | ' | ' | ' | ' |
Net cash proceeds from offering | ' | $416 | ' | ' | ' | ' |
Underwriting discounts, commissions and other offering costs | ' | $27 | ' | ' | ' | ' |
Percentage of the combined results of operations, assets and liabilities of the Predecessor Business, included in the condensed combined financial statements of the Predecessor | ' | ' | ' | ' | ' | 100.00% |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | ||
Transocean member | Transocean member | Transocean member | Transocean member | Transocean member | |||
Maximum | |||||||
Allocated indirect and overhead costs | ' | ' | ' | ' | ' | ' | ' |
Allocated operating and maintenance costs | ' | ' | $2 | $7 | $14 | $22 | ' |
Allocated personnel costs included in operating and maintenance costs | ' | ' | 1 | 6 | 11 | 17 | ' |
Allocated general and administrative costs | ' | ' | ' | 2 | 6 | 7 | 1 |
Allocated personnel costs included in general and administrative costs | ' | ' | ' | 1 | 4 | 4 | 1 |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' |
Aggregate carrying amount of long term accounts receivable | $12 | $22 | ' | ' | ' | ' | ' |
Weighted average effective interest rates of long term accounts receivable (as a percent) | 11.00% | 10.00% | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Maximum | Predecessor Business | Predecessor Business | ||
Components of provision (benefit) for income taxes | ' | ' | ' | ' |
Annual effective tax rates (as a percent) | 8.60% | ' | 10.70% | ' |
Income before income taxes, adjustment for prior period tax expense | ' | $1 | ' | ' |
Unrecognized tax benefits | ' | ' | ' | ' |
Unrecognized tax benefits, excluding interest and penalties | ' | ' | ' | 12 |
Interest and penalties | ' | ' | ' | 1 |
Unrecognized tax benefits, including interest and penalties | ' | ' | ' | $13 |
Earnings_per_unit_Details
Earnings per unit (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Numerator for earnings per unit | ' | ' |
Net income attributable to controlling interest | $17 | $17 |
Net income available to common unitholders | 10 | 10 |
Net income available to subordinated unitholders | 7 | 7 |
Common units | ' | ' |
Numerator for earnings per unit | ' | ' |
Net income attributable to controlling interest | ' | 10 |
Denominator for earnings per unit | ' | ' |
Weighted average units outstanding (in units) | 41 | 41 |
Earnings per unit | ' | ' |
Earnings per unit (in dollars per unit) | $0.24 | $0.24 |
Subordinated units | ' | ' |
Numerator for earnings per unit | ' | ' |
Net income attributable to controlling interest | ' | $7 |
Denominator for earnings per unit | ' | ' |
Weighted average units outstanding (in units) | 28 | 28 |
Earnings per unit | ' | ' |
Earnings per unit (in dollars per unit) | $0.24 | $0.24 |
Goodwill_Details
Goodwill (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 05, 2014 | Jan. 01, 2012 |
In Millions, unless otherwise specified | Predecessor | Transocean member | Transocean member | |
Predecessor | ||||
Goodwill | ' | ' | ' | ' |
Allocated goodwill | ' | ' | $356 | $213 |
Goodwill | $356 | $213 | ' | ' |
Credit_Agreements_Details
Credit Agreements (Details) (USD $) | Sep. 30, 2014 | Jul. 29, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Jul. 29, 2014 | Sep. 30, 2014 | Jul. 29, 2014 | Sep. 30, 2014 | Jul. 29, 2014 | Jul. 29, 2014 | Mar. 31, 2014 | Aug. 05, 2014 |
In Millions, unless otherwise specified | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Working capital notes payable | Working capital notes payable | Working capital notes payable | Working capital notes payable | Working capital notes payable | Working capital notes payable | Transocean affiliate | Transocean affiliate | |
Minimum | Maximum | LIBOR | LIBOR | LIBOR | Base rate | Base rate | Base rate | LIBOR | LIBOR | LIBOR | LIBOR | Former credit facilities | Former credit facilities | ||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | item | |||||||||||||||
Credit Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate borrowing capacity | ' | ' | ' | $300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300 | ' |
Credit facility term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | 'Adjusted London Interbank Offered Rate | ' | ' | 'Base rate | ' | ' | ' | ' | 'adjusted one month LIBOR | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | 1.63% | ' | ' | ' | 1.63% | 2.25% | ' | 1.63% | 2.25% | ' | ' | ' | 1.63% | 1.63% | 2.25% | ' | ' |
Percentage reduction to the calculated variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of commitment fees | ' | ' | ' | ' | ' | 0.23% | 0.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility amount outstanding | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Available borrowing capacity | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | ' | ' | ' | ' | ' | ' | ' |
Period after acquisition to determine pro rata share of actual net working capital | ' | '60 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | ' | ' | ' | ' | ' | ' |
Accounts payable to affiliates | $57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 | ' | ' | ' | ' | ' | ' |
Number of credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 25, 2012 | Dec. 31, 2013 |
Retained risk | Retained risk | Predecessor Business | Predecessor Business | Predecessor Business | |
Transocean member | Transocean member | Transocean member | |||
Transocean Three-Year Secured Revolving Credit Facility | Transocean Three-Year Secured Revolving Credit Facility | ||||
item | |||||
Commitments and Contingencies | ' | ' | ' | ' | ' |
Aggregate insured value of drilling rig fleet | $2,000,000,000 | ' | ' | ' | ' |
Per occurrence insurance deductible on hull and machinery | 10,000,000 | 125,000,000 | ' | ' | ' |
Maximum aggregate insurance deductible on hull and machinery per year | ' | 200,000,000 | ' | ' | ' |
Per occurrence insurance deductible on hull and machinery for which risk is retained by wholly-owned insurance company | ' | 115,000,000 | ' | ' | ' |
Per occurrence insurance deductible on hull and machinery for which risk is retained by company other than wholly-owned insurance company | ' | 10,000,000 | ' | ' | ' |
Maximum percentage of asset insured value covered by damage mitigation insurance | ' | 50.00% | ' | ' | ' |
Commercial market excess liability coverage | ' | 700,000,000 | ' | ' | ' |
Per occurrence deductible on excess liability for which risk is retained by wholly-owned insurance company | ' | 50,000,000 | ' | ' | ' |
Per occurrence deductible on collision liability claims | ' | 10,000,000 | ' | ' | ' |
Per occurrence deductible on crew personal injury and other third-party non-crew claims | ' | 5,000,000 | ' | ' | ' |
Liability loss excess amount for commercial market excess liability coverage | ' | 750,000,000 | ' | ' | ' |
Additional insurance that covers expenses that would otherwise be assumed by the well owner | ' | 100,000,000 | ' | ' | ' |
Borrowing capacity, maximum | ' | ' | ' | 900,000,000 | ' |
Credit facility term | ' | ' | ' | '3 years | ' |
Number of assets held as collateral | ' | ' | ' | 3 | ' |
Credit facility amount outstanding | ' | ' | ' | ' | 0 |
Aggregate carrying amount assets pledged | ' | ' | $706,000,000 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Jul. 29, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Jul. 29, 2014 | Aug. 05, 2014 | Jul. 29, 2014 | Jul. 29, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
item | Five Year Revolving Credit Facility | Working capital notes payable | Secondment agreements | Support agreement | Support agreement | Master services agreements | Omnibus Agreement | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Personnel costs | Personnel costs | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | Parent | Parent | Parent | Parent | Parent | Transocean affiliate | Transocean affiliate | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Rig Cos and subsidiaries | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | ||
Maximum | Maximum | item | Master services agreements | Master services agreements | Secondment agreements | Secondment agreements | Payment for materials and supplies settled through net investment | Payment for materials and supplies settled through net investment | Insurance costs allocated to drilling rigs | Insurance costs allocated to drilling rigs | License agreements | Credit facilities | Omnibus Agreement | Omnibus Agreement | Omnibus Agreement | Insurance costs allocated to drilling rigs | Insurance costs allocated to drilling rigs | Five Year Revolving Credit Facility | Working capital notes payable | Parent | Parent | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | TODDI | |||||||||
Master services agreements | Master services agreements | item | Minimum | Maximum | Omnibus Agreement | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Services for certain activities, including accounting, legal, finance, marketing, tax, treasury, insurance, global procurement and technical services | Payment for materials and supplies settled through net investment | Payment for materials and supplies settled through net investment | Payment for materials and supplies settled through net investment | Payment for materials and supplies settled through net investment | Insurance costs allocated to drilling rigs | Insurance costs allocated to drilling rigs | Insurance costs allocated to drilling rigs | Insurance costs allocated to drilling rigs | Personnel costs | Personnel costs | Personnel costs | Personnel costs | Personnel benefit costs | Personnel benefit costs | Personnel benefit costs | Personnel benefit costs | License agreements | License agreements | License agreements | License agreements | License agreements | License agreements | License agreements | Royalty fees | Royalty fees | Royalty fees | Royalty fees | |||||||||||||||||||||||||
Maximum | Minimum | Maximum | Maximum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating and maintenance costs and expenses | ' | ' | ' | ' | ' | $1,000,000 | $1,000,000 | ' | ' | $16,000,000 | $2,000,000 | $14,000,000 | $14,000,000 | $7,000,000 | $7,000,000 | $2,000,000 | $2,000,000 | ' | ' | ' | ' | ' | $3,000,000 | $3,000,000 | ' | ' | ' | ' | ' | ' | $5,000,000 | $9,000,000 | $24,000,000 | $26,000,000 | $5,000,000 | $11,000,000 | $27,000,000 | $28,000,000 | $2,000,000 | $4,000,000 | $8,000,000 | $10,000,000 | $9,000,000 | $24,000,000 | $57,000,000 | $70,000,000 | $2,000,000 | $2,000,000 | $7,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | $5,000,000 | $16,000,000 | $14,000,000 |
Notice period for termination of agreement | ' | ' | ' | ' | '90 days | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of costs and expenses incurred in connection with provision of services considered for payment of fees | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage markup on costs incurred in connection with capital spare or inventory considered for payment of fees | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage markup of allocable share of costs in connection with provision of services for capital spares or inventory added for payment of fees | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for payment of fees after receipt of invoice | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period after effective date of agreement for purchase of interest in drillship | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of interest to be offered for purchase of drillships | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ultra deepwater drillships in which interest is required to be offered | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ultra deepwater drillships available for offer to purchase interest | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of indemnification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of indemnity coverage provided by Transocean for such environmental and human health and safety liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of indemnification for which Transocean is liable for claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period within which after the closing of offering Transocean agreed to indemnify for certain defects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of lost revenue arising out of the failure to receive an operating dayrate from Chevron for Discoverer Clear Leader | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnification claim for lost revenues | 9,000,000 | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of drilling units equipped with patented dual activity technology | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of drilling stations to employ structures, equipment and techniques of dual-activity technology | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original license cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized license cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | ' | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' |
Deferred license cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of quarterly royalty fees paid under license agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | 5.00% | ' | ' | ' | ' |
Number of credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate borrowing capacity | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | ' | ' | $43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility term | ' | ' | '5 years | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 29, 2014 | Sep. 30, 2014 |
Predecessor Business | Predecessor Business | Transocean affiliate | Transocean affiliate | Transocean affiliate | Transocean affiliate | Rig Cos | Rig Cos | |||
Royalty fees | Royalty fees | Royalty fees | Royalty fees | |||||||
Predecessor Business | Predecessor Business | Predecessor Business | Predecessor Business | |||||||
Non-cash investing and financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Predecessor's capital transfers to affiliates | ' | ' | ($23) | ' | ' | ' | ' | ' | ' | ' |
Predecessor's capital transfers from affiliates | ' | ' | 10 | 1 | ' | ' | ' | ' | ' | ' |
Contribution for parent payment of dual-activity patent royalties | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution for parent indemnification of lost revenues | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution payable for working capital adjustment | ' | -6 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate value of drilling unit equipment transferred to parent | ' | ' | 23 | ' | ' | ' | ' | ' | ' | ' |
Aggregate value of drilling unit equipment transferred from the Parent | ' | ' | 10 | 1 | ' | ' | ' | ' | ' | ' |
Fees paid under dual-activity license agreements | ' | ' | ' | ' | $2 | $5 | $16 | $14 | ' | ' |
Period after acquisition to determine pro rata share of actual net working capital | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | '60 days |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Financial Instruments | ' |
Carrying amount of cash equivalents | $43 |
Carrying amount | ' |
Financial Instruments | ' |
Cash and cash equivalents | 49 |
Working capital note payable to affiliate | 43 |
Fair value | ' |
Financial Instruments | ' |
Cash and cash equivalents | 49 |
Working capital note payable to affiliate | $43 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Events, USD $) | 0 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Nov. 04, 2014 |
Subsequent Events | ' |
Distribution (in dollars per share) | $0.22 |
Approved distribution to unitholders | $15 |
Transocean member | ' |
Subsequent Events | ' |
Distribution to unitholders | $11 |