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Transocean Ltd. Reports Second Quarter 2011 Results

August 3, 2011

ZUG, SWITZERLAND, Aug 03, 2011 (MARKETWIRE via COMTEX) --

Transocean Ltd. (NYSE: RIG) (SIX: RIGN)

--  Revenues increased nine percent to $2.334 billion compared to $2.144
    billion in the first quarter 2011
--  Second quarter 2011 net income attributable to controlling interest
    was $155 million, which included $36 million of certain net
    unfavorable items, compared to $310 million in the first quarter 2011,
    which included $139 million of certain net favorable items noted in
    our first quarter earnings release
--  Revenue efficiency(1) improved to 92.1 percent, up from 90.0 percent
    in the first quarter 2011
--  Fleet utilization(2) was 55 percent, unchanged from the first quarter
    2011
--  Operating and maintenance expenses were $1.492 billion, up from $1.359
    billion in the first quarter 2011
--  The Annual Effective Tax Rate(4) for 2011 has increased to 22.6
    percent from 19.3 percent in the first quarter 2011
--  New contracts totaling $1.5 billion were secured in the Fleet Status
    Report period April 14, 2011 through July 13, 2011
--  Non-core assets George H. Galloway and GSF Labrador were classified as
    assets held for sale, in addition to the previously announced GSF
    Britannia
--  The first quarterly installment of the dividend was paid on June 15,
    2011

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable to controlling interest of $155 million, or $0.48 per diluted share, for the three months ended June 30, 2011. The results compare to net income attributable to controlling interest of $715 million, or $2.22 per diluted share, for the three months ended June 30, 2010.

Second quarter 2011 results included the following items, after tax, that resulted in a net unfavorable impact of approximately $36 million, or $0.11 per diluted share:

--  $25 million loss on impairment relating to the three Standard Jackups,
    George H. Galloway, GSF Labrador and GSF Britannia, classified as
    assets held for sale at June 30, 2011, and
--  $11 million of net charges related to discrete tax items and the
    effect of discontinued operations.

Second quarter 2011 results also included expenses associated with the Macondo well incident of approximately $26 million, $19 million after tax, or $0.06 per diluted share. These expenses were primarily related to legal costs and professional service fees.

Operations Quarterly Review

Revenues for the three months ended June 30, 2011 were $2.334 billion, compared to revenues of $2.144 billion during the three months ended March 31, 2011. Second quarter contract drilling revenues, which increased to $2.086 billion from $1.95 billion in the first quarter, were positively impacted by improved activity in the Gulf of Mexico, the commencement of operations of the newbuild Ultra-Deepwater Floater Deepwater Champion, the reactivation of previously idled rigs, and higher revenue efficiency for our Ultra-Deepwater and Deepwater Floaters, partially offset by the stacking of additional Deepwater and Midwater Floaters. Overall utilization was flat during the period compared to the first quarter.

Other revenues increased $54 million to $238 million, primarily due to additional drilling management services activity.

The company reported improved revenue efficiency for our Ultra-Deepwater and Deepwater Floaters compared to the first quarter, as our program to improve efficiency yielded results. Similar to the first quarter, compliance with new well control equipment certification requirements, higher standards for equipment condition and capacity constraints on our vendors continued to adversely impact revenue efficiency and out-of-service time compared to the prior year.

Operating and maintenance expenses totaled $1.492 billion for the second quarter 2011, up from $1.359 billion for the prior quarter. The increase was primarily due to higher maintenance expenses along with increased levels of contract drilling and drilling management services activity.

Net Interest Expense, Capital Expenditures and Cash Flow

Net Interest Expense was $142 million in the period compared to $130 million in the first quarter. The increase is due primarily to interest income associated with a tax refund recognized in the first quarter.

Capital expenditures increased to $293 million for the second quarter compared to $240 million in the first quarter 2011. The higher expenditures were primarily due to our newbuild construction program.

Cash flows from operating activities decreased to $340 million for the second quarter 2011 compared to $390 million for the first quarter 2011. The decrease in cash flows from operations resulted primarily from an increase in working capital.

Effective Tax Rate

Transocean's second quarter Effective Tax Rate(3) was 33.5 percent compared to 33.1 percent in the first quarter. The company's Annual Effective Tax Rate(4) for 2011, which excludes various discrete items, was 22.6 percent in the second quarter compared to 19.3 percent in the first quarter. The increases are primarily due to a shift in activity between tax jurisdictions. Please see the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. EDT, 4:00 p.m. CEST, on August 4, 2011. To participate, dial +1 719-457-2698 and refer to confirmation code 4734310 approximately five to 10 minutes prior to the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcast over the Internet in a listen-only mode and can be accessed by logging onto Transocean's website at www.deepwater.com and selecting "Investor Relations." A file containing four charts to be discussed during the conference call, titled "2Q11 Charts," has been posted to Transocean's website and can also be found by selecting "Investor Relations/Quarterly Toolkit." The conference call may also be accessed via the Internet at www.CompanyBoardroom.com by typing in Transocean's New York Stock Exchange trading symbol, "RIG."

A telephonic replay of the conference call should be available after 1:00 p.m. EDT, 7:00 p.m. CEST, on August 4, 2011, and can be accessed by dialing +1 719-457-0820 and referring to the confirmation code 4734310. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced internet addresses. Both replay options will be available for approximately 30 days.

About Transocean

Transocean is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 134 mobile offshore drilling units as well as four High-Specification Jackups under construction, Transocean's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. Transocean owns or operates a contract drilling fleet of 48 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 51 Standard Jackups and one swamp barge utilized in the support of offshore drilling activities.

(1) Revenue efficiency is defined as actual revenue divided by the highest amount of total revenue which could have been earned during the relevant period(s). See the accompanying schedule entitled "Revenue Efficiency."

(2) Utilization is defined as the total actual number of revenue earning days in the period as a percentage of the total number of calendar days in the period for all drilling rigs in our fleet. See the accompanying schedule entitled "Utilization."

(3) Effective Tax Rate is defined as income tax expense from continuing operations divided by income from continuing operations before income taxes. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(4) Annual Effective Tax Rate is defined as income tax expense from continuing operations excluding various discrete items (such as changes in estimates and tax on items excluded from income before income tax expense) divided by income from continuing operations before income tax expense excluding gains on sales and similar items pursuant to the accounting standards for income taxes. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

For more information about Transocean, please visit our website at www.deepwater.com.


                   TRANSOCEAN LTD. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In millions, except per share data)
                              (Unaudited)

                                  Three months ended     Six months ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2011       2010       2011       2010
                                 ---------  ---------  ---------  ---------
                                               (As                   (As
                                            adjusted)             adjusted)
Operating revenues
  Contract drilling revenues     $   2,086  $   2,272  $   4,036  $   4,697
  Contract drilling intangible
   revenues                             10         29         20         62
  Other revenues                       238        178        422        299
                                ----------  ---------  ---------  ---------
                                     2,334      2,479      4,478      5,058
                                ----------  ---------  ---------  ---------
Costs and expenses
  Operating and maintenance          1,492      1,347      2,851      2,533
  Depreciation and amortization        359        393        713        767
  General and administrative            66         58        133        121
                                ----------  ---------  ---------  ---------
                                     1,917      1,798      3,697      3,421
                                ----------  ---------  ---------  ---------
Loss on impairment                     (25)        --        (25)        --
Gain (loss) on disposal of
 assets, net                            (1)       268          7        254
                                ----------  ---------  ---------  ---------
Operating income                       391        949        763      1,891
                                ----------  ---------  ---------  ---------

Other income (expense), net
  Interest income                        5          5         20         10
  Interest expense, net of
   amounts capitalized                (147)      (141)      (292)      (273)
  Other, net                            (5)        (3)        (2)        12
                                ----------  ---------  ---------  ---------
                                      (147)      (139)      (274)      (251)
                                ----------  ---------  ---------  ---------
Income from continuing
 operations before income tax
 expense                               244        810        489      1,640
Income tax expense                      82         98        163        245
                                ----------  ---------  ---------  ---------
Income from continuing
 operations                            162        712        326      1,395
Income from discontinued
 operations, net of tax                  2          8        178         10
                                ----------  ---------  ---------  ---------

Net income                             164        720        504      1,405
Net income attributable to
 noncontrolling interest                 9          5         39         13
                                ----------  ---------  ---------  ---------
Net income attributable to
 controlling interest            $     155  $     715  $     465  $   1,392
                                ----------  ---------  ---------  ---------

Earnings per share-basic
  Earnings from continuing
   operations                    $    0.47  $    2.20  $    0.89  $    4.29
  Earnings from discontinued
   operations                         0.01       0.03       0.55       0.03
                                ----------  ---------  ---------  ---------
  Earnings per share             $    0.48  $    2.23  $    1.44  $    4.32
                                ----------  ---------  ---------  ---------

Earnings per share-diluted
  Earnings from continuing
   operations                    $    0.47  $    2.20  $    0.89  $    4.28
  Earnings from discontinued
   operations                         0.01       0.02       0.55       0.03
                                ----------  ---------  ---------  ---------
  Earnings per share             $    0.48  $    2.22  $    1.44  $    4.31
                                ----------  ---------  ---------  ---------

Weighted-average shares
 outstanding
  Basic                                320        319        319        320
  Diluted                              320        320        320        321

___________________

Certain reclassifications have been made to prior period amounts to conform with the current period's presentation, including reclassifications associated with our discontinued operations. The financial statements contained within this release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q.



                      TRANSOCEAN LTD. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In millions, except share data)
                                 (Unaudited)

                                                  June 30,     December 31,
                                                    2011           2010
                                               -------------- --------------
                                                               (As adjusted)
Assets
Cash and cash equivalents                      $       3,389  $       3,394
Accounts receivable, net of allowance for
 doubtful accounts
of $30 and $38 at June 30, 2011 and December
 31, 2010, respectively                                2,114          1,843
Materials and supplies, net of allowance for
 obsolescence
of $73 and $70 at June 30, 2011 and December
 31, 2010, respectively                                  546            514
Deferred income taxes, net                               112            115
Assets held for sale                                     139             --
Other current assets                                     438            329
                                               -------------  -------------
    Total current assets                               6,738          6,195
                                               -------------  -------------

Property and equipment                                26,897         26,721
Property and equipment of consolidated
 variable interest entities                            2,243          2,214
Less accumulated depreciation                          8,144          7,616
                                               -------------  -------------
  Property and equipment, net                         20,996         21,319
                                               -------------  -------------
  Goodwill                                             8,132          8,132
  Other assets                                         1,070          1,165
                                               -------------  -------------
        Total assets                           $      36,936  $      36,811
                                               -------------  -------------

Liabilities and equity
Accounts payable                               $         742  $         832
Accrued income taxes                                      26            109
Debt due within one year                               1,820          1,917
Debt of consolidated variable interest
 entities due within one year                             96             95
Other current liabilities                              1,800            883
                                               -------------  -------------
    Total current liabilities                          4,484          3,836
                                               -------------  -------------

Long-term debt                                         8,375          8,354
Long-term debt of consolidated variable
 interest entities                                       790            855
Deferred income taxes, net                               594            575
Other long-term liabilities                            1,754          1,791
                                               -------------  -------------
    Total long-term liabilities                       11,513         11,575
                                               -------------  -------------

Commitments and contingencies
Redeemable noncontrolling interest                        66             25

Shares, CHF 15.00 par value, 335,235,298
 authorized, 167,617,649 conditionally
 authorized, 335,235,298 issued at June 30,
 2011 and December 31, 2010; 319,639,362 and
 319,080,678 outstanding at June 30, 2011 and
 December 31, 2010, respectively                       4,490          4,482
Additional paid-in capital                             6,529          7,504
Treasury shares, at cost, 2,863,267 held at
 June 30, 2011 and December 31, 2010                    (240)          (240)
Retained earnings                                     10,434          9,969
Accumulated other comprehensive loss                    (328)          (332)
                                               -------------  -------------
  Total controlling interest shareholders'
   equity                                             20,885         21,383
                                               -------------  -------------
  Noncontrolling interest                                (12)            (8)
                                               -------------  -------------
    Total equity                                      20,873         21,375
                                               -------------  -------------
      Total liabilities and equity             $      36,936  $      36,811
                                               -------------  -------------

___________________

Certain reclassifications have been made to prior period amounts to conform with the current period's presentation, including reclassifications associated with our discontinued operations. The financial statements contained within this release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q.



                      TRANSOCEAN LTD. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In millions)
                                 (Unaudited)

                                     Three months ended   Six months ended
                                          June 30,            June 30,
                                     ------------------  ------------------
                                       2011      2010      2011      2010
                                     --------  --------  --------  --------

Cash flows from operating activities
Net income                           $    164  $    720  $    504  $  1,405
Adjustments to reconcile to net cash
 provided by operating activities
  Amortization of drilling contract
   intangibles                            (10)      (29)      (20)      (62)
  Depreciation and amortization           359       393       713       767
  Share-based compensation expense         27        18        54        53
  Loss on impairment                       25        --        25        --
  Gain on disposal of discontinued
   operations, net                         --        --      (173)       --
  (Gain) loss on disposal of assets,
   net                                      1      (268)       (7)     (254)
  Amortization of debt issue costs,
   discounts and premiums, net             36        51        62       100
  Deferred income taxes                     5       (12)       16       (34)
  Other, net                               14         1        11        32
  Deferred revenue, net                    (3)        7        43       158
  Deferred expenses, net                  (48)      (23)      (84)      (37)
  Changes in operating assets and
   liabilities                           (230)      411      (414)      313
                                     --------  --------  --------  --------
Net cash provided by operating
 activities                               340     1,269       730     2,441
                                     --------  --------  --------  --------

Cash flows from investing activities
  Capital expenditures                   (293)     (300)     (533)     (669)
  Proceeds from disposal of assets,
   net                                      5        10        18        51
  Proceeds from disposal of
   discontinued operations, net            --        --       259        --
  Proceeds from insurance recoveries
   for loss of drilling unit               --       560        --       560
  Other, net                              (27)       10       (33)       15
                                     --------  --------  --------  --------
Net cash provided by (used in)
 investing activities                    (315)      280      (289)      (43)
                                     --------  --------  --------  --------

Cash flows from financing activities
  Change in short-term borrowings,
   net                                      5       (46)       56      (177)
  Proceeds from debt                       --        --         5        54
  Repayments of debt                     (202)      (22)     (249)     (275)
  Distribution of qualifying
   additional paid-in capital            (254)       --      (254)       --
  Purchases of shares held in
   treasury                                --      (180)       --      (240)
  Other, net                                3         1        (4)       (2)
                                     --------  --------  --------  --------
Net cash used in financing
 activities                              (448)     (247)     (446)     (640)
                                     --------  --------  --------  --------

Net increase (decrease) in cash and
 cash equivalents                        (423)    1,302        (5)    1,758
Cash and cash equivalents at
 beginning of period                    3,812     1,586     3,394     1,130
                                     --------  --------  --------  --------
Cash and cash equivalents at end of
 period                              $  3,389  $  2,888  $  3,389  $  2,888
                                     --------  --------  --------  --------

___________________

Certain reclassifications have been made to prior period amounts to conform with the current period's presentation. The financial statements contained within this release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q.



                      TRANSOCEAN LTD. AND SUBSIDIARIES
                         FLEET OPERATING STATISTICS

                                    Operating Revenues (in millions) (1)
                              ------------------------------------------------
                                                             Six months ended
                                   Three months ended            June 30,
                              ---------------------------- -------------------
                              June 30,  March 31, June 30,
                                2011      2011      2010     2011      2010
                              -------- ---------- -------- -------- ----------
Contract Drilling Revenues
  High-Specification
   Floaters:
    Ultra Deepwater Floaters  $  1,005 $      844 $    809 $  1,849 $    1,710
    Deepwater Floaters             238        290      382      528        772
    Harsh Environment
     Floaters                      181        150      166      331        342
                              -------- ---------- -------- -------- ----------
  Total High-Specification
   Floaters                      1,424      1,284    1,357    2,708      2,824
  Midwater Floaters                376        400      521      776      1,044
  Jackups:
    High-Specification
     Jackups                        48         31       75       79        152
    Standard Jackups               230        229      312      459        664
                              -------- ---------- -------- -------- ----------
  Total Jackups                    278        260      387      538        816
  Other Rigs                         8          6        7       14         13
                              -------- ---------- -------- -------- ----------
Total Contract Drilling
 Revenues                        2,086      1,950    2,272    4,036      4,697
                              -------- ---------- -------- -------- ----------
Contract Intangible Revenue         10         10       29       20         62
Other Revenues
  Client Reimbursable
   Revenues                         40         37       38       77         78
  Integrated Services and
   Other                            15         15       11       30         42
  Drilling Management
   Services                        183        132      129      315        179
                              -------- ---------- -------- -------- ----------
Total Other Revenues               238        184      178      422        299
                              -------- ---------- -------- -------- ----------
Total Company                 $  2,334 $   $2,144 $  2,479 $ $4,478 $   $5,058
                              -------- ---------- -------- -------- ----------




                                          Average Daily Revenue (1)
                              ------------------------------------------------
                                                             Six months ended
                                   Three months ended            June 30,
                              ---------------------------- -------------------
                              June 30,  March 31, June 30,
                                2011      2011      2010     2011      2010
                              -------- ---------- -------- -------- ----------
  High-Specification
   Floaters:
    Ultra Deepwater Floaters  $516,600 $  467,700 $482,100 $493,100 $  484,100
    Deepwater Floaters         396,400    395,900  395,800  396,200    389,600
    Harsh Environment
     Floaters                  430,100    402,400  428,500  417,100    413,400
  Total High-Specification
   Floaters                    479,900    441,300  447,800  460,800    445,400
  Midwater Floaters            333,000    313,000  319,000  322,400    325,200
  High-Specification Jackups   110,300    106,200  138,500  108,700    149,700
  Standard Jackups             111,700    109,200  117,100  110,400    125,000
  Other Rigs                    76,400     73,400   72,000   74,900     72,400
                              -------- ---------- -------- -------- ----------
Total Drilling Fleet          $312,100 $  292,600 $285,200 $302,400 $  292,500
                              -------- ---------- -------- -------- ----------

(1) Average daily revenue is defined as contract drilling revenue earned per
revenue earning day in the period. A revenue earning day is defined as a day
for which a rig earns dayrate after commencement of operations.


                      TRANSOCEAN LTD. AND SUBSIDIARIES
                   FLEET OPERATING STATISTICS (continued)

                                            Utilization (2)
                           -------------------------------------------------
                                                           Six months ended
                                 Three months ended            June 30,
                           ----------------------------- -------------------
                            June 30, March 31,  June 30,
                              2011      2011      2010      2011      2010
                           --------- --------- --------- --------- ---------
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters                 80%       77%       76%       79%       82%
    Deepwater Floaters        41%       51%       66%       46%       68%
    Harsh Environment
     Floaters                 93%       83%       85%       88%       91%
  Total High-Specification
   Floaters                   69%       69%       74%       69%       78%
  Midwater Floaters           54%       60%       69%       57%       68%
  High-Specification
   Jackups                    56%       40%       66%       48%       62%
  Standard Jackups            43%       43%       53%       43%       53%
  Other Rigs                  50%       49%       50%       50%       50%
                           --------- --------- --------- --------- ---------
Total Drilling Fleet          55%       55%       64%       55%       65%
                           --------- --------- --------- --------- ---------

(2) Utilization is defined as the total actual number of revenue earning
days in the period as a percentage of the total number of calendar days in
the period for all drilling rigs in our fleet.



                                  Revenue Efficiency(3)
                        Trailing Five Quarters and Historical Data
             ---------------------------------------------------------------


               2Q     1Q
              2011   2011   4Q 2010   3Q 2010   2Q 2010   FY 2010   FY 2009
             ------ ------ --------- --------- --------- --------- ---------
                              (As       (As       (As       (As       (As
                           adjusted) adjusted) adjusted) adjusted) adjusted)

Ultra
 Deepwater    89.3%  85.3%   86.1%     86.5%     89.1%     88.6%     94.3%
Deepwater     93.9%  88.2%   88.6%     90.1%     92.8%     90.3%     89.6%
Harsh
 Environment
 Floaters     98.4%  99.2%   96.1%     96.4%     96.9%     96.0%     97.7%
Midwater
 Floaters     91.9%  93.6%   85.0%     96.2%     93.9%     92.5%     93.7%
High
 Specificatio
 n Jackups    95.6%  95.1%   97.7%     93.3%     98.9%     95.3%     96.2%
Standard
 Jackups      98.4%  97.7%   98.9%     96.4%     97.3%     97.3%     96.2%
Others        97.6%  99.0%   96.1%     99.6%     98.5%     98.4%     93.9%

             ------ ------ --------- --------- --------- --------- ---------
Total Fleet   92.1%  90.0%   88.7%     91.8%     92.8%     91.7%     94.0%
             ------ ------ --------- --------- --------- --------- ---------

(3) Revenue efficiency is defined as actual revenue divided by the highest
 amount of total revenue which could have been earned during the relevant
 period(s).


                      TRANSOCEAN LTD. AND SUBSIDIARIES
                  SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
                      (In millions, except percentages)



                      -------------------------------  --------------------
                             Three months ended          Six months ended
                      -------------------------------  --------------------
                      June 30,  March 31,   June 30,   June 30,   June 30,
                        2011       2011       2010       2011       2010
                      --------  ---------  ----------  --------  ----------
                                               (As                   (As
                                            adjusted)             adjusted)


Income from
 continuing
 operations before
 income taxes         $    244  $     245  $      810  $    489  $    1,640
  Add back
   (subtract):
    Litigation
     matters                --          8          12         8          12
    Gain on loss of
     Deepwater
     Horizon                --         --        (267)       --        (267)
    (Gain) loss on
     disposal of
     other assets,
     net                    --         (9)         --        (9)         14
    Loss on
     impairment of
     assets                 25         --          --        25          --
    Gain on
     retirement of
     debt                   --         --          --        --          (2)
    Other, net              --          5          --         5           5
                      --------  ---------  ----------  --------  ----------
Adjusted income from
 continuing
 operations before
 income taxes              269        249         555       518       1,402
                      --------  ---------  ----------  --------  ----------

Income tax expense
 from continuing
 operations                 82         81          98       163         245
    Add back
     (subtract):
    Changes in
     estimates (1)         (13)       (35)          1       (48)        (16)
    Other, net              --          2          --         2          (1)
                      --------  ---------  ----------  --------  ----------
Adjusted income tax
 expense from
 continuing
 operations (2)       $     69  $      48  $       99  $    117  $      228
                      --------  ---------  ----------  --------  ----------

Effective Tax Rate
 (3)                      33.5%      33.1%       12.1%     33.3%       15.0%

Annual Effective Tax
 Rate (4)                 25.6%      19.3%       18.0%     22.6%       16.3%


(1) Our estimates change as we file tax returns, settle disputes with tax
     authorities or become aware of other events and include changes in (a)
     deferred taxes, (b) valuation allowances on deferred taxes and (c)
     other tax liabilities.
(2) The three months ended June 30, 2011 includes $8 million of additional
     tax expense reflecting the catch-up effect of an increase in the annual
     effective tax rate from the previous quarter estimate.
(3) Effective Tax Rate is income tax expense divided by income before income
     taxes.
(4) Annual Effective Tax Rate is defined as income tax expense from
     continuing operations excluding various discrete items (such as changes
     in estimates and tax on items excluded from income before income tax
     expense) divided by income from continuing operations before income tax
     expense excluding gains on sales and similar items pursuant to the
     accounting standards for income taxes.

SOURCE: Transocean Ltd.