| Document and Entity Information (USD $) | |||
| In Billions, except Share data | 3 Months Ended
Mar. 31, 2010 | Apr. 26, 2010
| Jun. 30, 2009
|
| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | PRIDE INTERNATIONAL INC | ||
| Entity Central Index Key | 0000833081 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2010-03-31 | ||
| Amendment Flag | false | ||
| Document Fiscal Year Focus | 2,010 | ||
| Document Fiscal Period Focus | Q1 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 4.3 | ||
| Entity Common Stock, Shares Outstanding | 175,616,231 |
| Consolidated Balance Sheets (USD $) | ||
| In Millions | Mar. 31, 2010
| Dec. 31, 2009
|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | 346.8 | 763.1 |
| Trade receivables, net | 261.4 | 256.2 |
| Deferred income taxes | 9.6 | 21.6 |
| Prepaid expenses and other current assets | 74.7 | 123.3 |
| Total current assets | 692.5 | 1164.2 |
| PROPERTY AND EQUIPMENT | 6590.1 | 6,091 |
| Less: accumulated depreciation | 1238.7 | 1200.7 |
| Property and equipment, net | 5351.4 | 4890.3 |
| INTANGIBLE AND OTHER ASSETS, NET | 75.6 | 88.4 |
| Total assets | 6119.5 | 6142.9 |
| CURRENT LIABILITIES: | ||
| Current portion of long-term debt | 30.3 | 30.3 |
| Accounts payable | 112.8 | 132.4 |
| Accrued expenses and other current liabilities | 282.2 | 339.7 |
| Total current liabilities | 425.3 | 502.4 |
| OTHER LONG-TERM LIABILITIES | 109.2 | 118.3 |
| LONG-TERM DEBT, NET OF CURRENT PORTION | 1154.8 | 1161.7 |
| DEFERRED INCOME TAXES | 90.3 | 102.7 |
| STOCKHOLDERS' EQUITY: | ||
| Preferred stock, $0.01 par value; 50.0 shares authorized; none issued | 0 | 0 |
| Common stock, $0.01 par value; 400.0 shares authorized; 176.6 and 175.5 shares issued; 175.5 and 174.6 shares outstanding | 1.8 | 1.8 |
| Paid-in capital | 2073.6 | 2058.7 |
| Treasury stock, at cost; 1.1 and 0.9 shares | -21.2 | -16.4 |
| Retained earnings | 2283.8 | 2210.8 |
| Accumulated other comprehensive income | 1.9 | 2.9 |
| Total stockholders' equity | 4339.9 | 4257.8 |
| Total liabilities and stockholders' equity | 6119.5 | 6142.9 |
| Consolidated Balance Sheets (Parenthetical) | ||
| Share data in Millions | Mar. 31, 2010
| Dec. 31, 2009
|
| STOCKHOLDERS' EQUITY: | ||
| Preferred stock, par value (in dollars per share) | 0.01 | 0.01 |
| Preferred stock, shares authorized (in shares) | 50 | 50 |
| Preferred stock, issued (in shares) | 0 | 0 |
| Common stock, par value (in dollars per share) | 0.01 | 0.01 |
| Common stock, shares authorized (in shares) | 400 | 400 |
| Common stock, shares issued (in shares) | 176.6 | 175.5 |
| Common stock, shares outstanding (in shares) | 175.5 | 174.6 |
| Treasury stock, shares (in shares) | 1.1 | 0.9 |
| Consolidated Statements of Operations (Unaudited) (USD $) | ||
| In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| REVENUES | ||
| Revenues excluding reimbursable revenues | 357.4 | 439.3 |
| Reimbursable revenues | 5.4 | 12.6 |
| REVENUES | 362.8 | 451.9 |
| COSTS AND EXPENSES | ||
| Operating costs, excluding depreciation and amortization | 200.9 | 200.2 |
| Reimbursable costs | 4.2 | 11.2 |
| Depreciation and amortization | 42.1 | 39.5 |
| General and administrative, excluding depreciation and amortization | 29.5 | 29 |
| Gain on sales of assets, net | -0.2 | -0.4 |
| COSTS AND EXPENSES | 276.5 | 279.5 |
| EARNINGS FROM OPERATIONS | 86.3 | 172.4 |
| OTHER INCOME, NET | ||
| Interest expense, net of amounts capitalized | 0 | 0 |
| Interest income | 0.2 | 1.3 |
| Other income, net | 8.9 | 3.1 |
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 95.4 | 176.8 |
| INCOME TAXES | -14.7 | -27.9 |
| INCOME FROM CONTINUING OPERATIONS, NET OF TAX | 80.7 | 148.9 |
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | -7.7 | 10 |
| NET INCOME | $73 | 158.9 |
| BASIC EARNINGS PER SHARE: | ||
| Income from continuing operations | 0.45 | 0.84 |
| Income (loss) from discontinued operations | -0.04 | 0.06 |
| Net income | 0.41 | 0.9 |
| DILUTED EARNINGS PER SHARE: | ||
| Income from continuing operations | 0.45 | 0.84 |
| Income (loss) from discontinued operations | -0.04 | 0.06 |
| Net income | 0.41 | 0.9 |
| SHARES USED IN PER SHARE CALCULATIONS | ||
| Basic | 175.4 | 173.3 |
| Diluted | 175.9 | 173.3 |
| Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net income | $73 | 158.9 |
| Adjustments to reconcile net income to net cash from operating activities: | ||
| Depreciation and amortization | 42.1 | 53.6 |
| Amortization and write-offs of deferred financing costs | 0.6 | 0.4 |
| Amortization of deferred contract liabilities | -13.4 | -13.4 |
| Gain on sales of assets, net | -0.2 | -4.9 |
| Deferred income taxes | 2.2 | 4.3 |
| Excess tax benefits from stock-based compensation | -2.6 | -0.1 |
| Stock-based compensation | 8.1 | 8.9 |
| Other, net | 0.2 | 0.2 |
| Net effect of changes in operating accounts (See Note 12) | -11.3 | -57.2 |
| Change in deferred gain on asset sales and retirements | 4.4 | |
| Increase (decrease) in deferred revenue | -0.9 | 3.5 |
| Increase in deferred expense | 2.4 | 7.6 |
| NET CASH FLOWS FROM OPERATING ACTIVITIES | 100.2 | 166.2 |
| CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
| Purchases of property and equipment | -516.7 | -213.7 |
| Proceeds from dispositions of property and equipment | 0.4 | 0.6 |
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | -516.3 | -213.1 |
| CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
| Repayments of borrowings | -7.1 | -7.1 |
| Net proceeds from employee stock transactions | 4.3 | 1.8 |
| Excess tax benefits from stock-based compensation | 2.6 | 0.1 |
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | -0.2 | -5.2 |
| Decrease in cash and cash equivalents | -416.3 | -52.1 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 763.1 | 712.5 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | 346.8 | 660.4 |
| GENERAL | |
| 3 Months Ended
Mar. 31, 2010 | |
| GENERAL [Abstract] | |
| GENERAL | NOTE 1. GENERAL Nature of Operations Pride International, Inc. (Pride, we, our, or us) is a leading international provider of offshore contract drilling services. We provide these services to oil and natural gas exploration and production companies through the operation and management of 24 offshore rigs. We also have three ultra-deepwater drillships under construction. Basis of Presentation In August2009, we completed the spin-off of Seahawk Drilling, Inc., which holds the assets and liabilities that were associated with our 20-rig mat-supported jackup business. The results of operations, for all periods presented, of the assets disposed of in this transaction have been reclassified to income from discontinued operations. Except where noted, the discussions in the following notes relate to our continuing operations only (see Note 2). Our unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. We believe that the presentation and disclosures herein are adequate to make the information not misleading. In the opinion of management, the unaudited consolidated financial information included herein reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December31, 2009. The results of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for a full year or any other interim period. In the notes to the unaudited consolidated financial statements, all dollar and share amounts, other than per share amounts, in tabulations are in millions of dollars and shares, respectively, unless otherwise noted. Subsequent Events We have evaluated subsequent events through the issuance date of the unaudited consolidated financial statements. No subsequent events have taken place that require disclosure in this filing. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Property and Equipment Property and equipment comprise a significant amount of our total assets. We determine the carrying value of these assets based on property and equipment policies tha |
| DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | |
| 3 Months Ended
Mar. 31, 2010 | |
| DISCONTINUED OPERATIONS AND OTHER DIVESTITURES [Abstract] | |
| DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | NOTE 2. DISCONTINUED OPERATIONS AND OTHER DIVESTITURES Discontinued Operations We reclassify, from continuing operations to discontinued operations, for all periods presented, the results of operations for any component either held for sale or disposed of. We define a component as being distinguishable from the rest of our company because it has its own operations and cash flows. A component may be a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group. Such reclassifications had no effect on our net income or stockholders equity. Spin-off of Mat-Supported Jackup Business On August24, 2009, we completed the spin-off of Seahawk, which holds the assets and liabilities that were associated with our mat-supported jackup rig business. In the spin-off, our stockholders received 100% (approximately 11.6million shares) of the outstanding common stock of Seahawk by way of a pro rata stock dividend. Each of our stockholders of record at the close of business on August14, 2009 received one share of Seahawk common stock for every 15 shares of our common stock held by such stockholder and cash in lieu of any fractional shares of Seahawk common stock to which such stockholder otherwise would have been entitled. The following table presents selected information regarding the results of operations of our former mat-supported jackup business: Three Months Ended March 31, 2010 2009 Revenues $ $ 97.4 Operating costs, excluding depreciation and amortization 72.4 Depreciation and amortization 14.2 General and administrative, excluding depreciation and amortization 0.6 4.0 Gain on sales of assets, net (4.4 ) Earnings (loss)from operations $ (0.6 ) $ 11.2 Other income, net 0.7 Income (loss)before taxes (0.6 ) 11.9 Income taxes 0.2 (4.3 ) Income (loss)from discontinued operations $ (0.4 ) $ 7.6 In connection with the spin-off, we made a cash contribution to Seahawk of approximately $47.3 million to achieve a targeted working capital for Seahawk as of May31, 2009 of $85million. We and Seahawk also agreed to indemnify each other for certain liabilities that may arise or be incurred in the future attributable to our respective businesses. Other Divestitures In the third quarter of 2008, we entered into agreements to sell our remaining seven land rigs for $95million in cash. The sale of all but one rig closed in the fourth quarter of 2008. We leased the remaining rig to the buyer until the sale of that rig closed, which occurred in the second quarter of 2009. In February2008, we completed the sale of our fleet of three self-erecting, tender-assist rigs for $213million in cash. We operated one of the rigs until mid-April2009, when we transitioned the operations of that rig to the owner. During the third quarter of 2007, we completed the disposition of our Latin America Land and EP Services segments for $1.0billion in cash. The purchase price was subject to certain post-closing ad |
| PROPERTY AND EQUIPMENT | |
| 3 Months Ended
Mar. 31, 2010 | |
| PROPERTY AND EQUIPMENT [Abstract] | |
| PROPERTY AND EQUIPMENT | NOTE 3. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: March 31, December 31, 2010 2009 Rigs and rig equipment $ 4,142.6 $ 4,101.4 Construction-in-progress newbuild drillships 2,126.9 1,682.4 Construction-in-progress other 239.2 222.8 Other 81.4 84.4 Property and equipment, cost 6,590.1 6,091.0 Accumulated depreciation and amortization (1,238.7 ) (1,200.7 ) Property and equipment, net $ 5,351.4 $ 4,890.3 |
| DEBT | |
| 3 Months Ended
Mar. 31, 2010 | |
| DEBT [Abstract] | |
| DEBT | NOTE 4. DEBT Debt consisted of the following: March 31, December 31, 2010 2009 Senior unsecured revolving credit facility $ $ 8 1/2% Senior Notes due 2019, net of unamortized discount of $1.7million and $1.7million, respectively 498.3 498.3 7 3/8% Senior Notes due 2014, net of unamortized discount of $1.4million and $1.4million, respectively 498.6 498.6 MARAD notes, net of unamortized fair value discount of $1.7million and $1.9million, respectively 188.2 195.1 Total debt 1,185.1 1,192.0 Less: current portion of long-term debt 30.3 30.3 Long-term debt $ 1,154.8 $ 1,161.7 Amounts drawn under the senior unsecured revolving credit facility bear interest at variable rates based on LIBOR plus a margin or the alternative base rate as defined in the agreement. The interest rate margin applicable to LIBOR advances varies based on our credit rating. As of March 31, 2010, there were no borrowings or letters of credit outstanding under the facility and availability was $320.0million. |
| FAIR VALUE MEASUREMENTS | |
| 3 Months Ended
Mar. 31, 2010 | |
| FAIR VALUE MEASUREMENTS [Abstract] | |
| FAIR VALUE MEASUREMENTS | NOTE 5. FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, foreign currency forward contracts and debt. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying value included in the accompanying consolidated balance sheets approximate fair value. The estimated fair value of our debt at March31, 2010 and December31, 2009 was $1,288.4million and $1,307.6 million, respectively, which differs from the carrying amounts of $1,185.1million and $1,192.0 million, respectively, included in our consolidated balance sheets. The fair value of our debt has been estimated based on quarter- and year-end quoted market prices. The following table presents our financial liabilities measured at fair value on a recurring basis at March31, 2010 and December31, 2009: Quoted Prices Significant Significant in Other Unobservable Active Markets Observable Inputs Inputs Total (Level 1) (Level 2) (Level 3) March31, 2010 Derivative Financial Instruments Foreign currency forward contracts $ (0.3 ) $ $ (0.3 ) $ December31, 2009 Derivative Financial Instruments Foreign currency forward contracts $ (0.1 ) $ $ (0.1 ) $ The foreign currency forward contracts have been valued using a combined income and market-based valuation methodology based on forward exchange curves and credit. These curves are obtained from independent pricing services reflecting broker market quotes. |
| DERIVATIVES AND FINANCIAL INSTRUMENTS | |
| 3 Months Ended
Mar. 31, 2010 | |
| DERIVATIVES AND FINANCIAL INSTRUMENTS [Abstract] | |
| DERIVATIVES AND FINANCIAL INSTRUMENTS | NOTE 6. DERIVATIVES AND FINANCIAL INSTRUMENTS Cash Flow Hedging We have a foreign currency hedging program to mitigate the change in value of forecasted payroll transactions and related costs denominated in Euros. We are hedging a portion of these payroll and related costs using forward contracts. When the U.S. dollar strengthens against the Euro, the decline in the value of the forward contracts is offset by lower future payroll costs. Conversely, when the U.S. dollar weakens, the increase in value of forward contracts offsets higher future payroll costs. When effective, these transactions should generate cash flows that directly offset the cash flow impact from changes in the value of our forecasted Euro-denominated payroll transactions. The maximum amount of time that we are hedging our exposure to Euro-denominated forecasted payroll costs is six months. The aggregate notional amount of these forward contracts, expressed in U.S. dollars, was $5.6million at March31, 2010. All of our foreign currency forward contracts were accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging. The fair market value of these derivative instruments is included in prepaid expenses and other current assets or accrued expenses and other current liabilities, with the cumulative unrealized gain or loss included in accumulated other comprehensive income in our consolidated balance sheet. The payroll and related costs that are being hedged are included in accrued expenses and other current liabilities in our consolidated balance sheet, with the realized gain or loss associated with the revaluation of these liabilities from Euros to U.S. dollars included in other income (expense). Amounts recorded in accumulated other comprehensive income associated with the derivative instruments are subsequently reclassed into other income (expense)as earnings are affected by the underlying hedged forecasted transactions. The estimated fair market value of our outstanding foreign currency forward contracts resulted in a liability of approximately $0.3million at March31, 2010. Hedge effectiveness is measured quarterly based on the relative cumulative changes in fair value between derivative contracts and the hedged item over time. Any change in fair value resulting from ineffectiveness is recognized immediately in earnings and recorded to other income (expense). We did not recognize a gain or loss due to hedge ineffectiveness in our consolidated statements of operations for the three months ended March31, 2010 related to these derivative instruments. The balance of the net unrealized gain (loss)related to our foreign currency forward contracts in accumulated other comprehensive income is as follows: Three Months Ended March 31, 2010 2009 Net unrealized gain (loss)at beginning of period $ (0.1 ) $ 0.2 Activity during period: Settlement of forward contracts outstanding at beginning of period 0.1 Net unrealized loss on outstanding foreign currency forward contracts (0.2 ) (0.1 ) Net unrealized gain (loss)at end of period $ (0.3 ) $ |
| INCOME TAXES | |
| 3 Months Ended
Mar. 31, 2010 | |
| INCOME TAXES [Abstract] | |
| INCOME TAXES | NOTE 7. INCOME TAXES In accordance with generally accepted accounting principles, we estimate the full-year tax rate from continuing operations and apply this rate to our year-to-date income from continuing operations. In addition, we separately calculate the tax impact of unusual items, if any. For the three months ended March31, 2010 and 2009, our consolidated effective tax rate for continuing operations was 15.4% and 15.8%, respectively. The lower tax rate for the 2010 period was principally the result of an increased proportion of profitability in lower tax jurisdictions, partially offset by the lapse of certain tax benefits. |
| EARNINGS PER SHARE | |
| 3 Months Ended
Mar. 31, 2010 | |
| EARNINGS PER SHARE [Abstract] | |
| EARNINGS PER SHARE | NOTE 8. EARNINGS PER SHARE The following table is a reconciliation of the numerator and the denominator of our basic and diluted earnings per share from continuing operations: Three Months Ended March 31, 2010 2009 Income from continuing operations $ 80.7 $ 148.9 Loss from continuing operations allocated to non-vested share awards (0.9 ) (2.2 ) Income from continuing operations basic and diluted $ 79.8 $ 146.7 Weighted average shares of common stock outstanding basic 175.4 173.3 Stock options 0.5 Restricted stock awards Weighted average shares of common stock outstanding diluted 175.9 173.3 Income from continuing operations per share: Basic $ 0.45 $ 0.84 Diluted $ 0.45 $ 0.84 The calculation of weighted average shares of common stock outstanding diluted for the three months ended March31, 2010 and 2009, excludes 1.0million and 3.5million shares of common stock, respectively, issuable pursuant to outstanding stock options and certain restricted stock unit awards because their effect was antidilutive. |
| STOCK-BASED COMPENSATION | |
| 3 Months Ended
Mar. 31, 2010 | |
| STOCK-BASED COMPENSATION [Abstract] | |
| STOCK-BASED COMPENSATION | NOTE 9. STOCK-BASED COMPENSATION Our stock-based compensation plans provide for the granting or awarding of stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards and cash awards to directors, officers and other key employees. During the three months ended March31, 2010, we granted approximately 451,000 stock options at a weighted average exercise price of $29.60. The weighted average fair value per share of these stock-based awards estimated on the date of grant using the Black-Scholes-Merton option pricing model was $10.15. There were no significant changes in the weighted average assumptions used to calculate the Black-Scholes-Merton fair value of stock-based awards granted during the three months ended March31, 2010 from those used in 2009 as reported in Note 11 of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December31, 2009, except that the weighted average expected life was reduced from 5.3years to 4.2years, based on historical exercise patterns. During the three months ended March31, 2010, we granted approximately 539,000 restricted stock unit awards to employees that vest ratably over three years with a weighted average grant-date fair value per share of $29.55. Restricted stock units with performance and market condition criteria were granted to certain officers who did not participate in the employee pool of restricted stock during the quarter. Of those restricted stock units with performance criteria, approximately 122,000 units vest ratably over three years with a weighted average grant-date fair value per share of $29.60 and approximately 34,000 units cliff vest in three years with a weighted average grant-date fair value per share of $29.05. Approximately 185,000 restricted stock units subject to market-based performance criteria were granted with a weighted average grant-date fair value per share of $22.28. The market-based performance criteria are based upon our total stockholder return measured against the total stockholder return of a representative peer group of companies. |
| COMMITMENTS AND CONTINGENCIES | |
| 3 Months Ended
Mar. 31, 2010 | |
| COMMITMENTS AND CONTINGENCIES [ Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES FCPA Investigation During the course of an internal audit and investigation relating to certain of our Latin American operations, our management and internal audit department received allegations of improper payments to foreign government officials. In February2006, the Audit Committee of our Board of Directors assumed direct responsibility over the investigation and retained independent outside counsel to investigate the allegations, as well as corresponding accounting entries and internal control issues, and to advise the Audit Committee. The investigation has found evidence suggesting that payments, which may violate the U.S. Foreign Corrupt Practices Act, were made to government officials in Venezuela and Mexico aggregating less than $1million. The evidence to date regarding these payments suggests that payments were made beginning in early 2003 through 2005 (a)to vendors with the intent that they would be transferred to government officials for the purpose of extending drilling contracts for two jackup rigs and one semisubmersible rig operating offshore Venezuela; and (b)to one or more government officials, or to vendors with the intent that they would be transferred to government officials, for the purpose of collecting payment for work completed in connection with offshore drilling contracts in Venezuela. In addition, the evidence suggests that other payments were made beginning in 2002 through early 2006 (a)to one or more government officials in Mexico in connection with the clearing of a jackup rig and equipment through customs, the movement of personnel through immigration or the acceptance of a jackup rig under a drilling contract; and (b) with respect to the potentially improper entertainment of government officials in Mexico. The Audit Committee, through independent outside counsel, has undertaken a review of our compliance with the FCPA in certain of our other international operations. This review has found evidence suggesting that during the period from 2001 through 2006 payments were made directly or indirectly to government officials in Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola and the Republic of the Congo in connection with clearing rigs or equipment through customs or resolving outstanding issues with customs, immigration, tax, licensing or merchant marine authorities in those countries. In addition, this review has found evidence suggesting that in 2003 payments were made to one or more third parties with the intent that they would be transferred to a government official in India for the purpose of resolving a customs dispute related to the importation of one of our jackup rigs. The evidence suggests that the aggregate amount of payments referred to in this paragraph is less than $2.5million. In addition, the U.S. Department of Justice (DOJ) has asked us to provide information with respect to (a)our relationships with a freight and customs agent and (b)our importation of rigs into Nigeria. The investigation of the matters described above and the Audit Committees compliance review are substantially complete. Our management and the Audit Committee of |
| SEGMENT AND ENTERPRISE-RELATED INFORMATION | |
| 3 Months Ended
Mar. 31, 2010 | |
| SEGMENT AND ENTERPRISE-RELATED INFORMATION [Abstract] | |
| SEGMENT AND ENTERPRISE-RELATED INFORMATION | NOTE 11. SEGMENT AND ENTERPRISE-RELATED INFORMATION We organize our reportable segments based on water depth operating capabilities of our drilling rigs. Our reportable segments include Deepwater, which consists of our rigs capable of drilling in water depths of 4,500 feet and greater; Midwater, which consists of our semisubmersible rigs capable of drilling in water depths of 4,499 feet or less; and Independent Leg Jackup, which consists of our rigs capable of operating in water depths up to 300 feet. We also manage the drilling operations for deepwater rigs, which are included in a non-reported operating segment along with corporate costs and other operations. The accounting policies for our segments are the same as those described in Note 1 of our Consolidated Financial Statements. Summarized financial information for our reportable segments are as follows: Three Months Ended March 31, 2010 2009 Deepwater revenues: Revenues excluding reimbursables $ 217.9 $ 212.1 Reimbursable revenues 2.9 6.4 Total Deepwater revenues 220.8 218.5 Midwater revenues: Revenues excluding reimbursables 93.8 129.0 Reimbursable revenues 0.4 2.7 Total Midwater revenues 94.2 131.7 Independent Leg Jackups revenues: Revenues excluding reimbursables 31.4 78.2 Reimbursable revenues 0.2 0.2 Total Independent Leg Jackups revenues 31.6 78.4 Other 16.2 23.1 Corporate 0.2 Total revenues $ 362.8 $ 451.9 Earnings (loss)from continuing operations: Deepwater $ 87.5 $ 103.9 Midwater 30.9 58.6 Independent Leg Jackups (1.2 ) 39.3 Other 0.6 1.9 Corporate (31.5 ) (31.3 ) Total $ 86.3 $ 172.4 Capital expenditures: Deepwater $ 490.7 $ 192.9 Midwater 12.4 4.8 Independent Leg Jackups 8.5 3.6 Other 0.2 0.4 Corporate 4.7 3.4 Discontinued operations 0.2 8.6 Total $ 516.7 $ 213.7 Depreciation and amortization: Deepwater $ 20.7 $ 18.8 Midwater 12.0 11.5 Independent Leg Jackups 7.5 7.0 Other 0.1 0.1 Corporate 1.8 2.1 Total $ 42.1 $ 39.5 Segment assets primarily consist of property and equipment. Our total long-lived assets by segment as of March31, 2010 and December31, 2009 were as follows: March 31, December 31, 2010 2009 Total long-lived assets: Deepwater $ 4,296.1 $ 3,836.1 Midwater 680.4 680.5 Independent Leg Jackups 262.8 261.2 Other 20.7 23.1 Corporate 91.4 89.4 Total $ 5,351.4 $ 4,890.3 For the three- |
| OTHER SUPPLEMENTAL INFORMATION | |
| 3 Months Ended
Mar. 31, 2010 | |
| OTHER SUPPLEMENTAL INFORMATION [Abstract] | |
| OTHER SUPPLEMENTAL INFORMATION | NOTE 12. OTHER SUPPLEMENTAL INFORMATION Supplemental cash flows and non-cash transactions were as follows: Three Months Ended March 31, 2010 2009 Decrease (increase)in: Trade receivables $ (5.1 ) $ 9.3 Prepaid expenses and other current assets 49.4 10.6 Other assets 12.7 1.2 Increase (decrease)in: Accounts payable (10.0 ) (37.1 ) Accrued expenses (51.0 ) (43.0 ) Other liabilities (7.3 ) 1.8 Net effect of changes in operating accounts $ (11.3 ) $ (57.2 ) Cash paid during the year for: Interest $ 20.7 $ 20.8 Income taxes 6.7 31.1 Change in capital expenditures in accounts payable (10.2 ) 14.8 |
