Document and Company Informatio
Document and Company Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 19, 2010
| Jun. 30, 2009
| |
Document and Company Information [Abstract] | |||
Entity Registrant Name | DIAMOND OFFSHORE DRILLING INC | ||
Entity Central Index Key | 0000949039 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
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 | $5,694,071,609 | ||
Entity Common Stock, Shares Outstanding | 139,026,178 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets: | ||
Cash and cash equivalents | $376,417 | $336,052 |
Marketable securities | 400,853 | 400,592 |
Accounts receivable, net of provision for bad debts | 791,023 | 574,842 |
Prepaid expenses and other current assets | 155,077 | 123,046 |
Assets held for sale | 0 | 32,201 |
Total current assets | 1,723,370 | 1,466,733 |
Drilling and other property and equipment, net of accumulated depreciation | 4,432,052 | 3,414,373 |
Other assets | 108,839 | 73,325 |
Total assets | 6,264,261 | 4,954,431 |
Current liabilities: | ||
Accounts payable | 75,015 | 93,982 |
Accrued liabilities | 301,871 | 329,526 |
Taxes payable | 32,410 | 85,579 |
Current portion of long-term debt | 4,179 | 0 |
Total current liabilities | 413,475 | 509,087 |
Long-term debt | 1,495,375 | 503,280 |
Deferred tax liability | 546,024 | 462,026 |
Other liabilities | 178,745 | 118,553 |
Total liabilities | 2,633,619 | 1,592,946 |
Stockholders' equity: | ||
Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding) | 0 | 0 |
Common stock (par value $0.01, 500,000,000 shares authorized; 143,942,978 shares issued and 139,026,178 shares outstanding at December 31, 2009; 143,917,850 shares issued and 139,001,050 shares outstanding at December 31, 2008) | 1,439 | 1,439 |
Additional paid-in capital | 1,965,513 | 1,957,041 |
Retained earnings | 1,776,498 | 1,516,908 |
Accumulated other comprehensive gains | 1,605 | 510 |
Treasury stock, at cost (4,916,800 shares at December 31, 2009 and 2008) | (114,413) | (114,413) |
Total stockholders' equity | 3,630,642 | 3,361,485 |
Total liabilities and stockholders' equity | $6,264,261 | $4,954,431 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
Stockholders' equity: | ||
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 143,942,978 | 143,917,850 |
Common stock, shares outstanding | 139,026,178 | 139,001,050 |
Treasury stock, shares | 4,916,800 | 4,916,800 |
Consolidated Statements of Oper
Consolidated Statements of Operations (USD $) | |||
In Thousands, unless otherwise specified | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Revenues: | |||
Contract drilling | $3,536,579 | $3,476,417 | $2,505,663 |
Revenues related to reimbursable expenses | 94,705 | 67,640 | 62,060 |
Total revenues | 3,631,284 | 3,544,057 | 2,567,723 |
Operating expenses: | |||
Contract drilling | 1,223,771 | 1,185,007 | 1,003,789 |
Reimbursable expenses | 93,097 | 65,895 | 60,261 |
Depreciation | 346,446 | 287,417 | 235,729 |
General and administrative | 62,913 | 60,142 | 53,483 |
Bad debt expense | 9,746 | 31,952 | 0 |
Casualty loss | 0 | 6,281 | 0 |
(Gain) on disposition of assets | (7,902) | (2,831) | (8,583) |
Total operating expenses | 1,728,071 | 1,633,863 | 1,344,679 |
Operating income | 1,903,213 | 1,910,194 | 1,223,044 |
Other income (expense): | |||
Interest income | 4,497 | 11,744 | 33,566 |
Interest expense | (49,610) | (10,096) | (21,878) |
Foreign currency transaction gain (loss) | 11,483 | (65,566) | 2,906 |
Other, net | (1,152) | 770 | 5,734 |
Income before income tax expense | 1,868,431 | 1,847,046 | 1,243,372 |
Income tax expense | (492,212) | (536,499) | (398,908) |
Net income | $1,376,219 | $1,310,547 | $844,464 |
Earnings per share: | |||
Basic | 9.9 | 9.43 | 6.13 |
Diluted | 9.89 | 9.42 | 6.11 |
Weighted-average shares outstanding: | |||
Shares of common stock | 139,007 | 138,959 | 137,816 |
Dilutive potential shares of common stock | 90 | 114 | 1,129 |
Total weighted-average shares outstanding assuming dilution | 139,097 | 139,073 | 138,945 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity (USD $) | ||||||||||||
In Thousands, except Share data | Previously Reported
| Previously Reported
Common Stock | Previously Reported
Additional Paid-in Capital | Previously Reported
Treasury Stock | Previously Reported
Retained Earnings | Previously Reported
Accumulated Other Comprehensive Income | Common Stock
| Additional Paid-in Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income
| Total
|
Beginning balance, Shares at Dec. 31, 2005 | 133,842,429 | |||||||||||
Cumulative effect of adoption of new accounting pronouncement (Note 1) | $111,698 | ($96,300) | $15,398 | |||||||||
Ending balance at Dec. 31, 2006 | 2,291,086 | 1,341 | 1,299,846 | (114,413) | 1,108,729 | (4,417) | 1,341 | 1,411,544 | (114,413) | 1,012,429 | (4,417) | 2,306,484 |
Ending balance, Shares at Dec. 31, 2006 | 134,133,776 | 4,916,800 | 134,133,776 | 4,916,800 | ||||||||
Net income | 844,464 | 844,464 | ||||||||||
Dividends to stockholders ($5.75 per share, $6.125 per share and $8.00 per share for the year ended 2007, 2008 and 2009 respectively) | (796,194) | (796,194) | ||||||||||
Anti-dilution adjustment paid to stock plan participants ($1.25 per share, $5.625 per share and $7.50 per share for the year ended 2007, 2008 and 2009 respectively) | (541) | (541) | ||||||||||
Conversion of long-term debt | 94 | 459,654 | 459,748 | |||||||||
Conversion of long-term debt, Shares | 9,330,274 | |||||||||||
Reversal of deferred tax liability related to imputed interest on converted debentures | 54,154 | 54,154 | ||||||||||
Stock options exercised | 3 | 10,707 | 10,710 | |||||||||
Stock options exercised, Shares | 323,156 | |||||||||||
Stock-based compensation, net | 7,131 | 7,131 | ||||||||||
Gain/(Loss) on investments, net | (94) | (94) | ||||||||||
Pension plan termination | 4,526 | 4,526 | ||||||||||
Ending balance at Dec. 31, 2007 | 1,438 | 1,943,190 | (114,413) | 1,060,158 | 15 | 2,890,388 | ||||||
Ending balance, Shares at Dec. 31, 2007 | 143,787,206 | 4,916,800 | ||||||||||
Net income | 1,310,547 | 1,310,547 | ||||||||||
Dividends to stockholders ($5.75 per share, $6.125 per share and $8.00 per share for the year ended 2007, 2008 and 2009 respectively) | (851,128) | (851,128) | ||||||||||
Anti-dilution adjustment paid to stock plan participants ($1.25 per share, $5.625 per share and $7.50 per share for the year ended 2007, 2008 and 2009 respectively) | (2,669) | (2,669) | ||||||||||
Conversion of long-term debt | 1 | 3,532 | 3,533 | |||||||||
Conversion of long-term debt, Shares | 71,574 | |||||||||||
Reversal of deferred tax liability related to imputed interest on converted debentures | 532 | 532 | ||||||||||
Stock options exercised | 2,002 | 2,002 | ||||||||||
Stock options exercised, Shares | 59,070 | |||||||||||
Stock-based compensation, net | 7,785 | 7,785 | ||||||||||
Gain/(Loss) on investments, net | 495 | 495 | ||||||||||
Ending balance at Dec. 31, 2008 | 1,439 | 1,957,041 | (114,413) | 1,516,908 | 510 | 3,361,485 | ||||||
Ending balance, Shares at Dec. 31, 2008 | 143,917,850 | 4,916,800 | ||||||||||
Net income | 1,376,219 | 1,376,219 | ||||||||||
Dividends to stockholders ($5.75 per share, $6.125 per share and $8.00 per share for the year ended 2007, 2008 and 2009 respectively) | (1,112,058) | (1,112,058) | ||||||||||
Anti-dilution adjustment paid to stock plan participants ($1.25 per share, $5.625 per share and $7.50 per share for the year ended 2007, 2008 and 2009 respectively) | (4,571) | (4,571) | ||||||||||
Stock options exercised | 1,069 | 1,069 | ||||||||||
Stock options exercised, Shares | 25,128 | |||||||||||
Stock-based compensation, net | 7,403 | 7,403 | ||||||||||
Gain on foreign currency forward exchange contracts, net | 1,563 | 1,563 | ||||||||||
Gain/(Loss) on investments, net | (468) | (468) | ||||||||||
Ending balance at Dec. 31, 2009 | $1,439 | $1,965,513 | ($114,413) | $1,776,498 | $1,605 | $3,630,642 | ||||||
Ending balance, Shares at Dec. 31, 2009 | 143,942,978 | 4,916,800 |
1_Consolidated Statements of St
Consolidated Statements of Stockholders Equity (Parenthetical) (USD $) | ||
Retained Earnings
| Total
| |
Stockholders dividends per share | 5.75 | 5.75 |
Adjustment paid to stock plan participants per share | 1.25 | 1.25 |
Stockholders dividends per share | 6.125 | 6.125 |
Adjustment paid to stock plan participants per share | 5.625 | 5.625 |
Stockholders dividends per share | $8 | $8 |
Adjustment paid to stock plan participants per share | 7.5 | 7.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Statement of Comprehensive Income | |||
Net income | $1,376,219 | $1,310,547 | $844,464 |
Other comprehensive gains, net of tax: | |||
Pension plan termination | 0 | 0 | 4,526 |
Foreign currency forward exchange contracts: | |||
Unrealized holding gain | 6,395 | 0 | 0 |
Reclassification adjustment for gain included in net income | (4,832) | 0 | 0 |
Investments in marketable securities: | |||
Unrealized holding gain on investments | 41 | 507 | 188 |
Reclassification adjustment for gain included in net income | (509) | (12) | (282) |
Total other comprehensive gain | 1,095 | 495 | 4,432 |
Comprehensive income | $1,377,314 | $1,311,042 | $848,896 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating activities: | |||
Net income | $1,376,219 | $1,310,547 | $844,464 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 346,446 | 287,417 | 235,729 |
Gain on disposition of assets | (7,902) | (2,831) | (8,583) |
Casualty loss | 0 | 6,281 | 0 |
Gain on sale of marketable securities, net | (619) | (1,282) | (1,796) |
(Gain) loss on foreign currency forward exchange contracts | (17,751) | 54,010 | (5,423) |
Deferred tax provision | 85,524 | 61,404 | 682 |
Accretion of discounts on marketable securities | (679) | (2,258) | (11,830) |
Amortization/write-off of debt issuance costs | 672 | 529 | 9,649 |
Amortization of debt discounts | 299 | 242 | 238 |
Stock-based compensation expense | 6,440 | 6,293 | 4,454 |
Excess tax benefits from stock-based payment arrangements | (99) | (1,392) | (5,194) |
Deferred income, net | 37,405 | 4,610 | 35,645 |
Deferred expenses, net | (46,640) | (20,556) | (37,429) |
Other items, net | 14,673 | 3,995 | 15,640 |
Proceeds from settlement of foreign currency forward exchange contracts designated as accounting hedges | 8,895 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (219,867) | (42,451) | 43,467 |
Prepaid expenses and other current assets | 3,503 | 1,318 | (3,933) |
Accounts payable and accrued liabilities | (26,698) | (27,150) | 28,583 |
Taxes payable | (43,007) | (19,038) | 63,953 |
Net cash provided by operating activities | 1,516,814 | 1,619,688 | 1,208,316 |
Investing activities: | |||
Capital expenditures | (412,444) | (666,857) | (647,101) |
Rig acquisitions | (950,024) | 0 | 0 |
Proceeds from disposition of assets, net of disposal costs | 40,462 | 5,881 | 10,861 |
Proceeds from sale and maturities of marketable securities | 4,473,891 | 1,493,803 | 3,163,475 |
Purchase of marketable securities | (4,473,575) | (1,888,792) | (2,850,135) |
Proceeds from (cost of) settlement of foreign currency forward exchange contracts not designated as accounting hedges | (28,445) | (16,800) | 8,109 |
Net cash used in investing activities | (1,350,135) | (1,072,765) | (314,791) |
Financing activities: | |||
Issuance of 5.875% senior unsecured notes | 499,255 | 0 | 0 |
Issuance of 5.70% senior unsecured notes | 496,720 | 0 | 0 |
Debt issuance costs and arrangement fees | (8,671) | 0 | 0 |
Payment of dividends | (1,115,211) | (852,153) | (796,292) |
Proceeds from stock options exercised | 1,494 | 2,002 | 10,836 |
Excess tax benefits from share-based payment arrangements | 99 | 1,392 | 5,194 |
Redemption of remaining 1.5% debentures | 0 | (73) | 0 |
Net cash used in financing activities | (126,314) | (848,832) | (780,262) |
Net change in cash and cash equivalents | 40,365 | (301,909) | 113,263 |
Cash and cash equivalents, beginning of year | 336,052 | 637,961 | 524,698 |
Cash and cash equivalents, end of year | $376,417 | $336,052 | $637,961 |
2_Consolidated Statements of Ca
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | ||
12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | |
Statements of Cash Flows [Abstract] | ||
Senior unsecured notes, rate | 0.05875 | |
Senior unsecured notes, rate | 0.057 | |
Redeemable debenture rate | 0.015 |
General Information
General Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
General Information [Abstract] | |
General Information | 1. General Information Diamond Offshore Drilling, Inc. is a leading, global offshore oil and gas drilling contractor with a current fleet of 47 offshore rigs consisting of 32 semisubmersibles, 14 jack-ups and one drillship. Unless the context otherwise requires, references in these Notes to Diamond Offshore, we, us or our mean Diamond Offshore Drilling, Inc. and our consolidated subsidiaries. We were incorporated in Delaware in 1989. Our management has evaluated subsequent events through the time of our filing with the Securities and Exchange Commission on February23, 2010, the date on which we issued our financial statements. As of February19, 2010, Loews Corporation, or Loews, owned 50.4% of the outstanding shares of our common stock. Principles of Consolidation Our consolidated financial statements include the accounts of Diamond Offshore Drilling, Inc. and our subsidiaries after elimination of intercompany transactions and balances. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. Restatement of Convertible Debt Securities Which May Be Partially or Fully Settled in Cash Prior to January1, 2009, convertible debt securities that may be settled by the issuer fully or partially in cash were not required to be separated into a debt and equity component. Subsequent to that date, GAAP requires that all convertible debt securities that may be settled by the issuer fully or partially in cash be separated into a debt and an equity component. The proceeds of the issuance are first allocated to the debt portion based on the estimated fair value of a similar debt issue without a conversion option; the remaining proceeds are allocated to equity. The bifurcation requirement applies to both newly issued debt and debt issuances outstanding for any time during the accounting periods for which financial statements are presented and is to be retrospectively applied to all past periods presented. Both our Zero Coupon Convertible Debentures due 2020, or Zero Coupon Debentures, and our 1.5% Convertible Senior Debentures Due 2031, or 1.5% Debentures, have such conversion features as previously described. Our other outstanding indebtedness does not have similar conversion features. See Note 10. We have retrospectively applied the bifurcation requirement to our Zero Coupon Debentures and 1.5% Debentures and, accordingly, have adjusted our consolidated financial statements and notes thereto to reflect this change as of January1, 2007, the earliest period presented. The effect of bifurcation on our Consolidated Balance Sheets was as follows: Zero Coupon Debentures 1.5% Debentures Total December 31, December 31, |
Stock-Based Compensation
Stock-Based Compensation | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 2. Stock-Based Compensation Our Second Amended and Restated 2000 Stock Option Plan, as amended, or Stock Plan, provides for the issuance of either incentive stock options or non-qualified stock options to our employees, consultants and non-employee directors. Our Stock Plan also authorizes the award of stock appreciation rights, or SARs, in tandem with stock options or separately. The maximum aggregate number of shares of our common stock for which stock options or SARs may be granted is 1,500,000 shares. The exercise price per share may not be less than the fair market value of the common stock on the date of grant. Generally, stock options and SARs vest ratably over a four year period and expire in ten years. Total compensation cost recognized for Stock Plan transactions for the years ended December 31, 2009, 2008 and 2007 was $6.5million, $6.3million and $4.5million, respectively. Tax benefits recognized for the years ended December31, 2009, 2008 and 2007 related thereto were $2.1 million, $2.1million and $1.5million, respectively. The fair value of options and SARs granted under the Stock Plan during each of the years ended December31, 2009, 2008 and 2007 was estimated using the Black Scholes pricing model. The following are the weighted average assumptions used in estimating the fair value of our options and SARS: Year Ended December 31, 2009 2008 2007 Expected life of stock options/SARs (in years) 5 5 5 Expected volatility 37.24 % 31.96 % 27.53 % Dividend yield .62 % .51 % .48 % Risk free interest rate 2.17 % 2.66 % 4.28 % Expected life of stock options and SARs is based on historical data as is the expected volatility. The dividend yield is based on the current approved regular dividend rate in effect and the current market price at the time of grant. Risk free interest rates are determined using the U.S. Treasury yield curve at time of grant with a term equal to the expected life of the options and SARs. A summary of activity under the Stock Plan as of December31, 2009 and changes during the year then ended is as follows: Weighted- Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Awards Exercise Price (Years) (In Thousands) Awards outstanding at January1, 2009 547,032 $ 97.04 Granted 201,050 $ 83.48 Exercised (42,087 ) $ 65.73 Forfeited (20,252 ) $ 97.85 Expired (4,000 ) $ 119.83 Awards outstanding at December31, 2009 681,743 $ 94.82 8.1 $ 8,618 Awards exercisable at December31, 2009 283,272 $ 91.11 7.5 $ 4,593 The weighted-average grant date fair values of awards granted during the years ended December 31, 2009, 2008 and 2007 were $28.46, $33.73 and $36.80, respectively. The |
Earnings Per Share
Earnings Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share A reconciliation of the numerators and the denominators of the basic and diluted per-share computations follows: Year Ended December 31, 2009 2008 2007 (In thousands, except per share data) Net income basic (numerator): $ 1,376,219 $ 1,310,547 $ 844,464 Effect of dilutive potential shares Zero Coupon Debentures 94 32 49 1.5% Debentures 22 3,845 Net income including conversions diluted (numerator): $ 1,376,313 $ 1,310,601 $ 848,358 Weighted-average shares basic (denominator): 139,007 138,959 137,816 Effect of dilutive potential shares Zero Coupon Debentures 51 51 54 1.5% Debentures 19 1,015 Stock options and SARs 39 44 60 Weighted-average shares including conversions diluted (denominator): 139,097 139,073 138,945 Earnings per share: Basic $ 9.90 $ 9.43 $ 6.13 Diluted $ 9.89 $ 9.42 $ 6.11 Our computation of diluted EPS for the year ended December31, 2009 excludes stock options representing 8,291 shares of common stock and 413,610 SARs. The inclusion of such potentially dilutive shares in the computation of diluted EPS would have been antidilutive for the period. Our computation of diluted EPS for the year ended December31, 2008 excludes stock options representing 3,362 shares of common stock and 254,821 SARs. The inclusion of such potentially dilutive shares in the computation of diluted EPS would have been antidilutive for the period. Our computation of diluted EPS for the year ended December31, 2007 excludes stock options representing 22,937 shares of common stock and 154,119 SARs. The inclusion of such potentially dilutive shares in the computation of diluted EPS would have been antidilutive for the period. |
Marketable Securities
Marketable Securities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities We report our investments as current assets in our Consolidated Balance Sheets in Marketable securities, representing the investment of cash available for current operations. Our other investments in marketable securities are classified as available for sale and are summarized as follows: December 31, 2009 Amortized Unrealized Market Cost Gain (Loss) Value (In thousands) Due within one year $ 399,997 $ (1 ) $ 399,996 Mortgage-backed securities 792 65 857 Total $ 400,789 $ 64 $ 400,853 December 31, 2008 Amortized Unrealized Market Cost Gain Value (In thousands) Due within one year $ 398,791 $ 758 $ 399,549 Mortgage-backed securities 1,016 27 1,043 Total $ 399,807 $ 785 $ 400,592 Proceeds from maturities and sales of marketable securities and gross realized gains and losses are summarized as follows: Year Ended December 31, 2009 2008 2007 (In thousands) Proceeds from maturities $ 1,925,000 $ 550,000 $ 1,325,000 Proceeds from sales 2,548,891 943,803 1,838,475 Gross realized gains 791 1,291 1,856 Gross realized losses (172 ) (9 ) (60 ) |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments Foreign Currency Forward Exchange Contracts Our international operations expose us to foreign exchange risk associated with our costs payable in foreign currencies for employee compensation, foreign income tax payments and purchases from foreign suppliers. We may utilize FOREX contracts to reduce our foreign exchange risk. Our FOREX contracts may obligate us to exchange predetermined amounts of foreign currencies on specified dates or to net settle the spread between the contracted foreign currency exchange rate and the spot rate on the contract settlement date, which, for most of our contracts, is the average spot rate for the contract period. We enter into FOREX contracts when we believe market conditions are favorable to purchase contracts for future settlement with the expectation that such contracts, when settled, will reduce our exposure to foreign currency gains/losses on foreign currency expenditures in the future. The amount and duration of such contracts is based on our monthly forecast of expenditures in the significant currencies in which we do business and for which there is a financial market (i.e., Australian dollars, Brazilian reais, British pounds sterling, Mexican pesos and Norwegian kroner). These forward contracts are derivatives as defined by GAAP. In accordance with GAAP, each derivative contract is stated in the balance sheet at its fair value with gains and losses reflected in the income statement except that, to the extent the derivative qualifies for and is designated as an accounting hedge, the gains and losses are reflected in income in the same period as offsetting losses and gains on the qualifying hedged positions. For derivative contracts entered into prior to May2009, we did not seek hedge accounting treatment under GAAP. Accordingly, prior to May2009, all adjustments to record the carrying value of our derivative financial instruments at fair value were reported as Foreign currency transaction gain (loss) in our Consolidated Statements of Operations. Realized gains or losses upon settlement of derivative contracts not designated as cash flow hedges are reported as Foreign currency transaction gain (loss) in our Consolidated Statements of Operations. Beginning in May2009, we began a hedging strategy and designated certain of our qualifying FOREX contracts as cash flow hedges. These hedges are expected to be highly effective, and therefore, adjustments to record the carrying value of the effective portion of our derivative financial instruments to their fair value is recorded as a component of Accumulated other comprehensive gains, or AOCG, in our Consolidated Financial Statements. The effective portion of the cash flow hedge will remain in AOCG until it is reclassified into earnings in the period or periods during which the hedged transaction affects earnings or it is determined that the hedged transaction will not occur. Adjustments to record the carrying value of the ineffective portion of our derivative financial instruments to fair value are recorded as Foreign currency transaction gain (loss) in our Consolidated Statements of Operations. Realiz |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Financial Instruments and Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 6. Financial Instruments and Fair Value Disclosures Concentrations of Credit and Market Risk Financial instruments which potentially subject us to significant concentrations of credit or market risk consist primarily of periodic temporary investments of excess cash, trade accounts receivable and investments in debt securities, including mortgage-backed securities. We place our excess cash investments in high quality short-term money market instruments through several financial institutions. At times, such investments may be in excess of the insurable limit. We periodically evaluate the relative credit standing of these financial institutions as part of our investment strategy. Concentrations of credit risk with respect to our trade accounts receivable are limited primarily due to the entities comprising our customer base. Since the market for our services is the offshore oil and gas industry, this customer base consists primarily of major and independent oil and gas companies and government-owned oil companies. In general, before working for a customer with whom we have not had a prior business relationship and/or whose financial stability may be uncertain to us, we perform a credit review on that company. Based on that analysis, we may require that the customer present a letter of credit, prepay or provide other credit enhancements. During the second quarter of 2009, one of our customers sought short-term financial relief with respect to an existing contractual agreement with us for a six-well, one-year minimum contract term, program that began in May2009. As a result, we agreed to amend our existing contract with this customer, and in consideration of this amendment, we are to receive a $20,000 per day increase in the total contractual operating dayrate, to a total of $560,000 per day, for a minimum of the first 240days of the initial one-year contract. Under the terms of the amended agreement, the customer is obligated to pay us $75,000 per day in accordance with our normal credit terms (due 30 days after receipt of invoice). The remainder of the dayrate for the six-well program (minimum of 240days) will be paid through the conveyance of a 27% net profits interest, or NPI, in a minimum of five developmental oil-and-gas producing properties covering six wells owned by the customer. Based on the current production payout estimate, we anticipate that the first payment from the conveyance of the NPI will commence in early 2010. Payment of such amounts, and the timing of such payments, are contingent upon such production and upon energy sale prices. At December31, 2009, the $70.5million portion of this trade receivable that is expected to be paid from the NPI, is presented as Accounts Receivable in our Consolidated Balance Sheets. At December31, 2009, we believe that collectability of the amount owed pursuant to the NPI arrangement is reasonably assured. During the year ended December31, 2009, we earned a dayrate totaling $560,000 per day and recognized revenue and interest income per day of $540,000 and $20,000, respectively. Historically, we have not experienced significant losses on our trade receivables. However, in D |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: December 31, 2009 2008 (In thousands) Rig spare parts and supplies $ 49,122 $ 52,481 Deferred mobilization costs 45,502 28,924 Prepaid insurance 11,478 11,845 Deferred tax assets 7,235 9,350 Deposits 3,562 3,846 Prepaid taxes 26,109 11,589 FOREX contracts 2,634 Other 9,435 5,011 Total $ 155,077 $ 123,046 |
Drilling and Other Property and
Drilling and Other Property and Equipment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Drilling and Other Property and Equipment [Abstract] | |
Drilling and Other Property and Equipment | 8. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows: December 31, 2009 2008 (In thousands) Drilling rigs and equipment $ 6,950,303 $ 5,600,306 Land and buildings 44,640 35,069 Office equipment and other 38,203 34,021 Cost 7,033,146 5,669,396 Less accumulated depreciation (2,601,094 ) (2,255,023 ) Drilling and other property and equipment, net $ 4,432,052 $ 3,414,373 During 2009, we purchased two new-build, dynamically positioned, semisubmersible drilling rigs, the Ocean Courage and Ocean Valor, for an aggregate cost of $950.0million, exclusive of final commissioning, initial mobilization, drill string and other necessary capital spares. |
Accrued Liabilities
Accrued Liabilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 9. Accrued Liabilities Accrued liabilities consist of the following: December 31, 2009 2008 (In thousands) Accrued project/upgrade expenses $ 115,778 $ 107,502 Payroll and benefits 69,065 69,326 Deferred revenue 46,666 39,307 Rig operating expenses 29,141 29,749 Interest payable 22,710 10,385 Personal injury and other claims 10,018 10,489 FOREX contracts 230 37,301 Hurricane related expenses 5,080 Other 8,263 20,387 Total $ 301,871 $ 329,526 |
Long-Term Debt
Long-Term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 10. Long-Term Debt Long-term debt consists of the following: December 31, 2009 2008 (In thousands) Zero Coupon Debentures (due 2020) $ 4,179 $ 4,036 5.15% Senior Notes (due 2014) 249,682 249,623 4.875% Senior Notes (due 2015) 249,671 249,621 5.875% Senior Notes (due 2019) 499,292 5.70% Senior Notes (due 2039) 496,730 1,499,554 503,280 Less: Current maturities 4,179 Total $ 1,495,375 $ 503,280 Certain of our long-term debt payments may be accelerated due to rights that the holders of our debt securities have to put the securities to us. The holders of our outstanding Zero Coupon Debentures have the right to require us to purchase all or a portion of their outstanding debentures on June6, 2010. See Zero Coupon Debentures for further discussion of the rights that the holders of these debentures have to put the securities to us. The aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2009, are as follows: (Dollars in thousands) 2010 $ 4,179 2011 2012 2013 2014 249,682 Thereafter 1,245,693 1,499,554 Less: Current maturities 4,179 Total $ 1,495,375 $285 Million Revolving Credit Facility In November2006, we entered into a $285million syndicated, senior unsecured revolving credit facility, or Credit Facility, for general corporate purposes, including loans and performance or standby letters of credit, that will mature on November2, 2011. Loans under the Credit Facility bear interest at a rate per annum equal to, at our election, either (i)the higher of the prime rate or the federal funds rate plus 0.5% or (ii)the London Interbank Offered Rate, or LIBOR, plus an applicable margin, varying from 0.20% to 0.525%, based on our current credit ratings. Under our Credit Facility, we also pay, based on our current credit ratings, and as applicable, other customary fees, including, but not limited to, a facility fee on the total commitment under the Credit Facility regardless of usage and a utilization fee that applies if the aggregate of all loans outstanding under the Credit Facility equals or exceeds 50% of the total commitment under the facility. Changes in credit ratings could lower or raise the fees that we pay under the Credit Facility. The Credit Facility contains customary covenants, including, but not limited to, the maintenance of a ratio of consolidated indebtedness to total capitalization, as defined in the Credit Facility, of not more than 60% at the end of each fiscal quarter and limitations on liens, mergers, consolidations, liquidation and dissolution, changes in lines of business, swap agreements, transactions with affiliates and subsidiary indebtedness. Based on our current credit ratings at December31, 2009, the applicable margin on LIBOR loans would have been 0.24%. As of December31, 2009, there were no loans outstanding under the Credit Facility. See Note 12 for a discussion of letters of credit issued |
Other Comprehensive Income
Other Comprehensive Income (Loss) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Comprehensive Income (Loss) [Abstract] | |
Other Comprehensive Income (Loss) | 11. Other Comprehensive Income (Loss) The components of our other comprehensive income (loss)and the associated income tax effects allocated to such components are as follows: Year Ended December 31, 2009 Before Tax Tax Effect Net-of-Tax (In thousands) FOREX contracts: Unrealized holding gain $ 9,838 $ (3,443 ) $ 6,395 Reclassification adjustment for gain included in net income (7,434 ) 2,602 (4,832 ) Net unrealized gain on FOREX contracts 2,404 (841 ) 1,563 Investments in marketable securities: Unrealized holding gain 63 (22 ) 41 Reclassification adjustment for gain included in net income (783 ) 274 (509 ) Net unrealized loss on marketable securities (720 ) 252 (468 ) Other comprehensive income $ 1,684 $ (589 ) $ 1,095 Year Ended December 31, 2008 Before Tax Tax Effect Net-of-Tax (In thousands) Investments in marketable securities: Unrealized holding gain $ 780 $ (273 ) $ 507 Reclassification adjustment for gain included in net income (18 ) 6 (12 ) Net unrealized gain on marketable securities 762 (267 ) 495 Other comprehensive income $ 762 $ (267 ) $ 495 Year Ended December 31, 2007 Before Tax Tax Effect Net-of-Tax (In thousands) Investments in marketable securities: Unrealized holding gain $ 289 $ (101 ) $ 188 Reclassification adjustment for gain included in net income (434 ) 152 (282 ) Net unrealized loss on marketable securities (145 ) 51 (94 ) Pension plan termination 6,963 (2,437 ) 4,526 Other comprehensive income $ 6,818 $ (2,386 ) $ 4,432 The components of our accumulated other comprehensive income (loss)included in our Consolidated Balance Sheets are as follows: Unrealized Gain (Loss) on Total Other Pension Plan FOREX Marketable Comprehensive Termination Contracts Securities Income (Loss) (In thousands) Balance at January1, 2008 $ $ $ 15 $ 15 Other comprehensive gain 495 495 Balance at December31, 2008 510 510 Other comprehensive gain 1,563 (468 ) 1,095 Balance at December31, 2009 $ $ 1,563 $ 42 $ 1,605 |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Various claims have been filed against us in the ordinary course of business, including claims by offshore workers alleging personal injuries. We have assessed each claim or exposure to determine the likelihood that the resolution of the matter might ultimately result in an adverse effect on our financial condition, results of operations and cash flows. When we determine that an unfavorable resolution of a matter is probable and such amount of loss can be determined, we record a reserve for the estimated loss at the time that both of these criteria are met. Our management believes that we have established adequate reserves for any liabilities that may reasonably be expected to result from these claims. Litigation. We were a defendant in a lawsuit filed in January2005 in the U.S. District Court for the Eastern District of Louisiana on behalf of Total EP USA, Inc. and several oil companies alleging that our semisubmersible rig, the Ocean America, damaged a natural gas pipeline in the Gulf of Mexico during Hurricane Ivan. During the second quarter of 2009, the U.S. District Court ruled in our favor and dismissed the lawsuit. The plaintiffs initially appealed the judgment but, in November2009, filed a motion instructing the Court to withdraw and dismiss their appeal. The Court dismissed the appeal and ordered the plaintiffs to reimburse approximately $172,000 of our costs incurred at trial. We are one of several unrelated defendants in lawsuits filed in the Circuit Courts of the State of Mississippi alleging that defendants manufactured, distributed or utilized drilling mud containing asbestos and, in our case, allowed such drilling mud to have been utilized aboard our offshore drilling rigs. The plaintiffs seek, among other things, an award of unspecified compensatory and punitive damages. We expect to receive complete defense and indemnity from Murphy Exploration Production Company pursuant to the terms of our 1992 asset purchase agreement with them. We are unable to estimate our potential exposure, if any, to these lawsuits at this time but do not believe that ultimate liability, if any, resulting from this litigation will have a material adverse effect on our financial condition, results of operations and cash flows. Various other claims have been filed against us in the ordinary course of business. In the opinion of our management, no pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial position, results of operations and cash flows. We intend to defend these matters vigorously; however, we cannot predict with certainty the outcome or effect of any litigation matters specifically described above or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of these lawsuits. Personal Injury Claims. Our deductible for liability coverage for personal injury claims, which primarily result from Jones Act liability in the Gulf of Mexico, is $5.0million per occurrence, with no aggregate deductible. The Jones Act is a federal law that permits seamen to seek compensa |
Related-Party Transactions
Related-Party Transactions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 13. Related-Party Transactions Transactions with Loews. We are party to a services agreement with Loews, or the Services Agreement, pursuant to which Loews performs certain administrative and technical services on our behalf. Such services include personnel, internal auditing, accounting, and cash management services, in addition to advice and assistance with respect to preparation of tax returns and obtaining insurance. Under the Services Agreement, we are required to reimburse Loews for (i) allocated personnel costs (such as salaries, employee benefits and payroll taxes) of the Loews personnel actually providing such services and (ii)all out-of-pocket expenses related to the provision of such services. The Services Agreement may be terminated at our option upon 30days notice to Loews and at the option of Loews upon six months notice to us. In addition, we have agreed to indemnify Loews for all claims and damages arising from the provision of services by Loews under the Services Agreement unless due to the gross negligence or willful misconduct of Loews. We were charged $1.1million, $0.5million and $0.4million by Loews for these support functions during the years ended December31, 2009, 2008 and 2007, respectively. In addition, since 2006 we have purchased performance and appeal bonds in support of our drilling operations offshore Mexico and workers compensation claims, respectively, from affiliates of a majority-owned subsidiary of Loews after obtaining competitive quotes. At December31, 2009, six performance and two appeal bonds totaling $103.1million were outstanding. Premiums and fees associated with bonds purchased from affiliates totaled $213,000, $74,000 and $45,000 in 2009, 2008 and 2007, respectively. Transactions with Other Related Parties. We hire marine vessels and helicopter transportation services at the prevailing market rate from subsidiaries of SEACOR Holdings Inc. The Chairman of the Board of Directors, President and Chief Executive Officer of SEACOR Holdings Inc. is also a member of our Board of Directors. For the years ended December31, 2009, 2008 and 2007, we paid $3.6million, $0.5million and $4.6million, respectively, for the hire of such vessels and such services. During the years ended December31, 2009, 2008 and 2007 we made payments of $2.1million, $2.0million and $1.1million, respectively, to Ernst Young LLP for tax and other consulting services. The wife of our President and Chief Executive Officer is an audit partner at this firm |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes Our income tax expense is a function of the mix between our domestic and international pre-tax earnings or losses, respectively, as well as the mix of international tax jurisdictions in which we operate. Certain of our international rigs are owned and operated, directly or indirectly, by Diamond Offshore International Limited, or DOIL, a Cayman Islands subsidiary which we wholly own. Since forming this subsidiary in 2002, it has been our intention to indefinitely reinvest the earnings of the subsidiary to finance foreign activities. Consequently, no U.S. federal income taxes were provided on these earnings in years subsequent to 2002 except to the extent that such earnings were immediately subject to U.S. federal income taxes. In December2007, DOIL made a non-recurring distribution of $850.0million to its U.S. parent, a portion of which consisted of earnings of the subsidiary that had not previously been subjected to U.S. federal income tax. We recognized $58.6million of U.S. federal income tax expense in 2007 as a result of the distribution. Notwithstanding the non-recurring distribution made in December2007, it remains our intention to indefinitely reinvest future earnings of DOIL to finance foreign activities except for the earnings of Diamond East Asia Limited, or DEAL, a wholly-owned subsidiary of DOIL formed in December 2008. It is our intention to repatriate the earnings of DEAL and, accordingly, U.S. income taxes are provided on its earnings. Although we do not intend to repatriate the earnings of DOIL, these foreign earnings could become subject to U.S. federal tax if remitted, or if deemed remitted as a dividend; however, it is not practicable to estimate this tax liability. We have certain other foreign subsidiaries for which U.S. taxes have been provided to the extent a U.S. tax liability could arise upon remittance of earnings from the foreign subsidiaries. As of December31, 2009, we provided $24,000 for U.S. taxes attributable to undistributed earnings of the foreign subsidiaries. On actual remittance, certain countries may impose withholding taxes that, subject to certain limitations, are then available for use as tax credits against a U.S. tax liability, if any. The components of income tax expense (benefit)are as follows: Year Ended December 31, 2009 2008 2007 (In thousands) Federal current $ 255,753 $ 346,796 $ 338,426 State current 131 (282 ) 950 Foreign current 150,804 128,581 58,638 Total current 406,688 475,095 398,014 Federal deferred 80,258 52,624 6,718 Foreign deferred 5,266 8,780 (5,824 ) Total deferred 85,524 61,404 894 Total $ 492,212 $ 536,499 $ 398,908 The difference between actual income tax expense and the tax provision computed by applying the statutory federal income tax rate to income before taxes is attributable to the following: Year Ended December 31, 2009 2008 2007 |
Employee Benefit Plans
Employee Benefit Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans Defined Contribution Plans We maintain defined contribution retirement plans for our U.S., U.K. and third-country national, or TCN, employees. The plan for our U.S. employees, or the 401k Plan, is designed to qualify under Section 401(k) of the Code. Under the 401k Plan, each participant may elect to defer taxation on a portion of his or her eligible earnings, as defined by the 401k Plan, by directing his or her employer to withhold a percentage of such earnings. A participating employee may also elect to make after-tax contributions to the 401k Plan. During the years ended December31, 2009, 2008 and 2007, we contributed 5.00% of a participants defined compensation and matched 100% of the first 6% of each employees compensation contributed to the 401k Plan. Participants are fully vested immediately upon enrollment in the 401k Plan. For the years ended December31, 2009, 2008 and 2007, our provision for contributions was $26.0million, $23.8million and $20.9million, respectively. The defined contribution retirement plan for our U.K. employees, or U.K. Plan, provides that we make annual contributions in an amount equal to the employees contributions, generally up to a maximum of 5.25% of the employees defined compensation per year for employees working in the U.K. sector of the North Sea and up to a maximum of 9% of the employees defined compensation per year for U.K. nationals working in the Norwegian sector of the North Sea. Our provision for contributions was $1.4million, $1.7million and $1.5million for the years ended December31, 2009, 2008 and 2007, respectively. The defined contribution retirement plan for our TCN employees, or International Savings Plan, is similar to the 401k Plan. During 2009, 2008 and 2007 we contributed 5.00% of a participants defined compensation and matched 100% of the first 6% of each employees compensation contributed to the International Savings Plan. Our provision for contributions was $2.5million, $2.3million and $2.1million for the years ended December31, 2009, 2008 and 2007, respectively. Deferred Compensation and Supplemental Executive Retirement Plan Our Amended and Restated Diamond Offshore Management Company Supplemental Executive Retirement Plan, or Supplemental Plan, provides benefits to a select group of our management or other highly compensated employees to compensate such employees for any portion of our base salary contribution and/or matching contribution under the 401k Plan that could not be contributed to that plan because of limitations within the Code. Our provision for contributions to the Supplemental Plan for the years ended December31, 2009, 2008 and 2007 was approximately $241,000, $222,000 and $192,000, respectively. |
Casualty Loss
Casualty Loss | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Casualty Loss [Abstract] | |
Casualty Loss | 16. Casualty Loss Casualty Loss In September2008, the Ocean Tower sustained significant damage during Hurricane Ike, which impacted the Gulf of Mexico and the upper Texas and Louisiana Gulf coasts. The Ocean Tower lost its derrick, drill floor and drill floor equipment during the hurricane. During the third quarter of 2008, we wrote off the net book value of approximately $2.6million of the derrick, drill floor and drill floor equipment for the Ocean Tower and accrued $3.7million in estimated salvage costs for the recovery of equipment from the ocean floor. The aggregate of these items is reflected in Casualty loss in our Consolidated Statements of Operations for the year ended December31, 2008. In December2008, we transferred the $32.2million net book value of the Ocean Tower to Assets held for sale in our Consolidated Balance Sheets pursuant to entering into an agreement to sell the rig for use in a non-drilling capacity at a price in excess of its carrying value. The sale of the Ocean Tower was completed on October26, 2009. We recognized a $6.7million gain on disposition, net of broker commission, which has been reported as (Gain) on disposition of assets in our Consolidated Statements of Operations for the year ended December31, 2009. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Segments and Geographic Area Analysis [Abstract] | |
Segments and Geographic Area Analysis | 17. Segments and Geographic Area Analysis Although we provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics among all divisions and locations, including the nature of services provided and the type of customers of such services, in accordance with GAAP. Revenues from contract drilling services by equipment-type are listed below: Year Ended December 31, 2009 2008 2007 (In thousands) High-Specification Floaters $ 1,380,771 $ 1,322,125 $ 1,030,892 Intermediate Semisubmersibles 1,698,584 1,629,358 1,028,667 Jack-ups 457,224 524,934 446,104 Total contract drilling revenues 3,536,579 3,476,417 2,505,663 Revenues related to reimbursable expenses 94,705 67,640 62,060 Total revenues $ 3,631,284 $ 3,544,057 $ 2,567,723 Geographic Areas At December31, 2009, our drilling rigs were located offshore twelve countries in addition to the United States. As a result, we are exposed to the risk of changes in social, political and economic conditions inherent in international operations and our results of operations and the value of our international assets are affected by fluctuations in foreign currency exchange rates. Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed. Year Ended December 31, 2009 2008 2007 (In thousands) United States $ 1,232,940 $ 1,443,200 $ 1,288,535 International: South America 716,448 583,876 256,236 Australia/Asia/Middle East 717,658 557,138 400,701 Europe/Africa/Mediterranean 641,180 634,033 473,665 Mexico 323,058 325,810 148,586 2,398,344 2,100,857 1,279,188 Total revenues $ 3,631,284 $ 3,544,057 $ 2,567,723 An individual international country may, from time to time, comprise a material percentage of our total contract drilling revenues from unaffiliated customers. For the years ended December31, 2009, 2008 and 2007, individual countries that comprised 5% or more of our total contract drilling revenues from unaffiliated customers are listed below. Year Ended December 31, 2009 2008 2007 Brazil 18.2 % 13.0 % 9.1 % Australia 10.8 % 9.6 % 4.8 % Mexico 8.9 % 9.2 % 5.8 % United Kingdom 6.7 % 8.3 % 9.6 % Egypt 2.7 % 4.2 % 5.4 % The following table presents our long-lived tangible assets by geographic location as of December31, 2009, 2008 and 2007. A substantial portion of our assets is mobile, and therefore asset locations at the end of the period are not necessarily indicat |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Unaudited Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | 18. Unaudited Quarterly Financial Data Unaudited summarized financial data by quarter for the years ended December31, 2009 and 2008 is shown below. First Second Third Fourth Quarter Quarter Quarter Quarter (In thousands, except per share data) 2009 Revenues $ 885,720 $ 946,407 $ 908,375 $ 890,782 Operating income (a) 456,936 517,619 479,460 449,198 Income before income tax expense 453,337 520,838 475,285 418,971 Net income (b) 348,581 387,440 364,134 276,064 Net income per share: Basic $ 2.51 $ 2.79 $ 2.62 $ 1.99 Diluted $ 2.51 $ 2.79 $ 2.62 $ 1.98 2008 (c) Revenues $ 786,102 $ 954,372 $ 900,376 $ 903,207 Operating income (d) 401,044 577,245 475,825 456,080 Income before income tax expense 405,780 590,779 447,425 403,062 Net income 290,507 416,164 310,533 293,343 Net income per share: Basic $ 2.09 $ 2.99 $ 2.23 $ 2.11 Diluted $ 2.09 $ 2.99 $ 2.23 $ 2.11 (a) In December2009, we recorded a $10.7million provision for bad debts to reserve a portion of the uncollected balance of receivables related to our operations in Egypt and recovered $0.9million associated with the reserve for bad debts recorded in 2008. See Note 6. In addition, our results for the fourth quarter of 2009 include a $6.7million gain on the sale of the Ocean Tower, which was presented as Assets held for sale in our Consolidated Balance Sheets at December31, 2008. See Note 16. (b) Results for the fourth quarter of 2009 reflect increased tax expense that arose from (i)a change in mix of domestic and international earnings during the year from that which was previously expected, (ii)impact of foreign exchange differences on foreign tax credits and (iii)an assessment from the Brazilian tax authorities for the years 2004 and 2005. See Note 14. (c) Historical data for the four quarterly periods in 2008 have been restated to reflect the effect thereon of the adoption on January1, 2009 of an accounting standard related to convertible debt. See Note 1. (d) In December2008, we recorded a $31.9million provision for bad debts to reserve the uncollected balance due from one of our customers in the U.K. See Note 6. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule Of Valuation And Qualifying Accounts Disclosure SCHEDULE II DIAMOND OFFSHORE DRILLING, INC. Valuation and Qualifying Accounts Column A Column B Column C Column D Column E Additions Charged Balance at to Costs Charged Balance at Beginning and to Other End of Description of Period Expenses Accounts Deductions Period (In thousands) Deducted in balance sheet from Accounts receivable: Allowance for doubtful accounts: 2009 $ 31,952 $ 10,678 $ $ (932 ) $ 41,698 2008 31,952 31,952 2007 |