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Transocean Ltd. Reports Third Quarter 2016 Results

November 2, 2016
  • Revenues were $903 million, compared with $943 million in the second quarter of 2016;
  • Operating and maintenance expense was $404 million, down from $500 million in the prior period;
  • Net income attributable to controlling interest was $229 million, $0.62 per diluted share, compared with $77 million, $0.21 per diluted share, in the second quarter of 2016;
  • Adjusted net income was $93 million, $0.25 per diluted share, excluding $136 million of net favorable items. This compares with $64 million, $0.17 per diluted share, in the prior quarter, excluding $13 million of net favorable items;
  • Effective Tax Rate excluding discrete items (1) was 21.2 percent, compared with 16.3 percent in the second quarter of 2016;
  • Cash flows from operating activities were $440 million, up from $207 million in the previous quarter;
  • Revenue efficiency(2) was 100.7 percent, up from 96.5 percent in the second quarter of 2016; and
  • Contract backlog was $12.2 billion as of the October 2016 Fleet Status Report.

ZUG, SWITZERLAND-November 2, 2016-Transocean Ltd. (NYSE: RIG) today reported net income attributable to controlling interest of $229 million, $0.62 per diluted share, for the three months ended September 30, 2016. Third quarter 2016 results included net favorable items of $136 million, $0.37 per diluted share, as follows:

  • $110 million, $0.30 per diluted share, in gains on early debt retirements;
  • $38 million, $0.10 per diluted share, in discrete tax benefits; and
  • $3 million, $0.01 per diluted share, associated with a gain on rig sales.

These net favorable items were partially offset by:

  • $11 million, $0.03 per diluted share, related to the loss on impairment of assets; and
  • $4 million, $0.01 per diluted share, in restructuring charges primarily related to employee severance.

After consideration of these net favorable items, third quarter 2016 adjusted net income was $93 million, or $0.25 per diluted share.

For the three months ended September 30, 2015, the company reported a net income attributable to controlling interest of $321 million, or $0.88 per diluted share. Third quarter 2015 included net favorable items of $5 million, or $0.01 per diluted share. After consideration of these net favorable items, adjusted net income was $316 million, or $0.87 per diluted share.

Revenues for the three months ended September 30, 2016, decreased $40 million sequentially to $903 million due primarily to reduced activity associated with rig retirements partly offset by higher revenue efficiency. The company's average revenue efficiency was 100.7 percent, compared with 96.5 percent in the second quarter of 2016. Additionally, third quarter 2016 was favorably impacted by the full quarter's contribution from the newbuild, ultra-deepwater drillship Deepwater Proteus. The floater commenced operations on its 10 year contract in May 2016.

Operating and maintenance expense was $404 million, down from $500 million in the previous quarter. The decrease was due largely to lower costs associated with stacked rigs and rig retirements, and lower personnel expense related to the company's continuing cost management initiatives. These decreases were partly offset by $21 million related to the grounding, salvage and preparation for recycling of the Transocean Winner.

General and administrative expense was $39 million, down from $42 million in the second quarter of 2016. The decrease was due primarily to lower share-based compensation expense.

The Effective Tax Rate excluding discrete items was 21.2 percent, compared with 16.3 percent in the previous quarter. The increase was due to changes in adjusted pre-tax income, and certain operating losses where the company does not expect to realize a tax benefit. The Effective Tax Rate(4) was (3.8) percent, down from 16.2 percent in the prior quarter. The decrease was due largely to $38 million in discrete items related primarily to the recognition of tax benefits.

Interest expense, net of amounts capitalized, was $112 million, compared with $95 million in the prior quarter. The increase was due primarily to the company's senior unsecured notes issued in July 2016, partly offset by early debt retirements. Capitalized interest increased $1 million sequentially to $41 million. Interest income was $5 million, compared with $4 million in the prior quarter.

Cash flows from operating activities increased $233 million sequentially to $440 million. The increase was associated with a release of working capital and higher operating performance.

Third quarter 2016 capital expenditures of $246 million were primarily associated with the final shipyard payment on the newbuild, ultra-deepwater drillship Deepwater Conqueror. This compares with capital expenditures of $458 million in the previous quarter.

"I am extremely pleased with the quarterly results," said President and Chief Executive Officer Jeremy Thigpen. "Due to our unwavering commitment to maximize uptime for our customers, and the outstanding performance of our crews and shore based personnel, we delivered revenue efficiency of 100 percent."  Thigpen added, "Of note, we produced this exceptional result, while continuing to realize cost savings across the organization, which enabled us to improve our quarterly Adjusted Normalized EBITDA margin to 51 percent."

"In October, we successfully executed on a $600 million bond secured by the newbuild drillship Deepwater Thalassa," said Executive Vice President and Chief Financial Officer Mark Mey. "This transaction, coupled with our previous debt offering this year, further extends our liquidity runway and improves our strategic flexibility as the market recovers."

Non-GAAP Financial Measures

All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.

Transocean owns or has partial ownership interests in, and operates a fleet of 57 mobile offshore drilling units consisting of 29 ultra-deepwater floaters, seven harsh-environment floaters, four deepwater floaters, seven midwater floaters and 10 high-specification jackups. In addition, the company has five ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 9 a.m. EDT, 2 p.m. CET, on Thursday, November 3, 2016, to discuss the results. To participate, dial +1 913-312-0664 and refer to confirmation code 7805131 approximately 10 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode over the internet and can be accessed on Transocean's website, www.deepwater.com, by selecting "Investor Relations/Overview." Supplemental materials that may be referenced during the teleconference will be posted to Transocean's website and can be found by selecting "Investor Relations/Financial Reports."

A replay of the conference call will be available after 12 p.m. EDT, 5 p.m. CET, on November 3, 2016. The replay, which will be archived for approximately 30 days, can be accessed at +1 719-457-0820, passcode 7805131, and PIN 9876. The replay will also be available on the company's website.

Forward-Looking Statements

The statements described in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company's newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas, the intention to scrap certain drilling rigs, the benefits, effects or results of the anticipated merger with Transocean Partners LLC, the failure to obtain Transocean Partners LLC unitholder approval for the merger and the satisfaction of other conditions to the consummation of the merger and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2015, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at: www.deepwater.com.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

(1) Effective Tax Rate excluding discrete items 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 taxes), divided by income from continuing operations before income tax expense excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes and estimating the annual effective tax rate. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(2) Revenue efficiency is defined as actual contract drilling revenues for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage.  Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions. See the accompanying schedule entitled "Revenue Efficiency."

(3) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage. See the accompanying schedule entitled "Utilization."

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

Analyst Contacts:
Bradley Alexander
+1 713-232-7515

Diane Vento
+1 713-232-8015

Media Contact:
Pam Easton
+1 713-232-7647



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

                           
    Three months ended    Nine months ended  
    September 30,    September 30,   
    2016   2015   2016   2015  
                           
Operating revenues                          
Contract drilling revenues   $  883   $  1,569   $  2,912   $  5,346  
Other revenues      20      39      275      189  
       903      1,608      3,187      5,535  
Costs and expenses                          
Operating and maintenance      404      880      1,569      2,161  
Depreciation      225      210      667      750  
General and administrative      39      45      124      135  
       668      1,135      2,360      3,046  
Loss on impairment      (11)      (13)      (34)      (1,839)  
Gain (loss) on disposal of assets, net      1      (15)      -      (20)  
Operating income      225      445      793      630  
                           
Other income (expense), net                          
Interest income      5      5      15      17  
Interest expense, net of amounts capitalized      (112)      (109)      (296)      (345)  
Gain on retirement of debt      110      7      148      7  
Other, net      7      (4)      9      38  
       10      (101)      (124)      (283)  
Income from continuing operations before income tax expense      235      344      669      347  
Income tax expense (benefit)      (9)      17      82      140  
Income from continuing operations      244      327      587      207  
Income from discontinued operations, net of tax      -      3      -      2  
                           
Net income      244      330      587      209  
Net income attributable to noncontrolling interest      15      9      32      29  
Net income attributable to controlling interest   $  229   $  321   $  555   $  180  
                           
Earnings per share-basic                          
Earnings from continuing operations   $  0.62   $  0.87   $  1.50   $  0.48  
Earnings from discontinued operations      -      0.01      -      0.01  
Earnings per share   $  0.62   $  0.88   $  1.50   $  0.49  
                           
Earnings per share-diluted                          
Earnings from continuing operations   $  0.62   $  0.87   $  1.49   $  0.48  
Earnings from discontinued operations      -      0.01      -      0.01  
Earnings per share   $  0.62   $  0.88   $  1.49   $  0.49  
                           
Weighted-average shares outstanding                          
Basic      365      364      365      363  
Diluted      365      364      365      363  


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

               
    September 30,    December 31,   
    2016   2015  
               
Assets              
Cash and cash equivalents   $  2,534   $  2,339  
Accounts receivable, net of allowance for doubtful accounts
of less than $1 at September 30, 2016 and December 31, 2015
     887      1,379  
Materials and supplies, net of allowance for obsolescence
of $159 and $148 at September 30, 2016 and December 31, 2015, respectively
     585      635  
Assets held for sale      6      8  
Restricted cash      366      340  
Other current assets      113      84  
Total current assets      4,491      4,785  
               
Property and equipment      27,178      26,274  
Less accumulated depreciation      (6,078)      (5,456)  
Property and equipment, net      21,100      20,818  
Deferred income taxes, net      247      316  
Other assets      329      410  
Total assets   $  26,167   $  26,329  
               
Liabilities and equity              
Accounts payable   $  257   $  448  
Accrued income taxes      105      82  
Debt due within one year      1,069      1,093  
Other current liabilities      875      1,046  
Total current liabilities      2,306      2,669  
               
Long-term debt      7,191      7,397  
Deferred income taxes, net      290      339  
Other long-term liabilities      967      1,108  
Total long-term liabilities      8,448      8,844  
               
Commitments and contingencies              
Redeemable noncontrolling interest      21      8  
               
Shares, CHF 0.10 par value, 393,397,220 authorized, 167,617,649 conditionally authorized, 370,967,382 issued and 365,461,629 outstanding at September 30, 2016 and CHF 15.00 par value, 396,260,487 authorized, 167,617,649 conditionally authorized, 373,830,649 issued and 364,035,397 outstanding at December 31, 2015      34      5,193  
Additional paid-in capital      10,682      5,739  
Treasury shares, at cost, 2,863,267 held at December 31, 2015     -      (240)  
Retained earnings      4,695      4,140  
Accumulated other comprehensive loss      (327)      (334)  
Total controlling interest shareholders' equity      15,084      14,498  
Noncontrolling interest      308      310  
Total equity      15,392      14,808  
Total liabilities and equity   $  26,167   $  26,329  


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

             
  Nine months ended  
  September 30,   
  2016   2015  
             
Cash flows from operating activities            
Net income $  587   $  209  
Adjustments to reconcile to net cash provided by operating activities:            
Depreciation    667      750  
Share-based compensation expense    28      47  
Loss on impairment    34      1,839  
Loss on disposal of assets, net    -      20  
Gain on retirement of debt    (148)      (7)  
Deferred income tax expense (benefit)    11      (104)  
Other, net    11      55  
Changes in deferred revenues, net    (30)      (118)  
Changes in deferred costs, net    66      142  
Changes in operating assets and liabilities    52      (348)  
Net cash provided by operating activities    1,278      2,485  
             
Cash flows from investing activities            
Capital expenditures    (1,072)      (1,336)  
Proceeds from disposal of assets, net    16      36  
Proceeds from repayment of loans receivable    -      15  
Net cash used in investing activities    (1,056)      (1,285)  
             
Cash flows from financing activities            
Proceeds from issuance of debt, net of discounts and costs    1,210      -  
Repayments of debt    (1,316)      (1,306)  
Deposit to cash account restricted for financing activities    (24)      -  
Proceeds from cash accounts and investments restricted for financing activities    124      110  
Distributions of qualifying additional paid-in capital    -      (381)  
Distributions to holders of noncontrolling interest    (23)      (21)  
Other, net    2      (3)  
Net cash used in financing activities    (27)      (1,601)  
             
Net increase (decrease) in cash and cash equivalents    195      (401)  
Cash and cash equivalents at beginning of period    2,339      2,635  
Cash and cash equivalents at end of period $  2,534   $  2,234  


TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS

                                 
    Operating Revenues (in millions)  
    Three months ended    Nine months ended  
    September 30,    June 30,   September 30,    September 30,    September 30,   
    2016   2016   2015   2016   2015  
Contract drilling revenues                                
Ultra-deepwater floaters   $  580   $  556   $  768   $  1,758   $  2,552  
Harsh environment floaters      103      100      211      383      713  
Deepwater floaters      43      51      135      179      517  
Midwater floaters      87      133      327      358      1,137  
High-specification jackups      66      74      124      223      416  
Contract intangible revenue      4      4      4      11      11  
Total contract drilling revenues      883      918      1,569      2,912      5,346  
                                 
Other revenues                                
Customer early termination fees      9      9      -      227      66  
Customer reimbursement revenues and other      11      16      39      48      123  
Total other revenues      20      25      39      275      189  
Total revenues   $  903   $  943   $  1,608   $  3,187   $  5,535  

                                 
    Average Daily Revenue (1)  
    Three months ended    Nine months ended  
    September 30,    June 30,   September 30,    September 30,    September 30,   
    2016   2016   2015   2016   2015  
Ultra-deepwater floaters   $  485,300   $  503,000   $  475,800   $  492,600   $  514,300  
Harsh environment floaters      225,900      343,500      493,400      356,700      513,600  
Deepwater floaters      234,100      238,600      368,300      266,400      355,600  
Midwater floaters      240,400      304,600      350,000      303,300      343,700  
High-specification jackups      143,100      137,900      172,700      143,800      173,100  
Total drilling fleet   $  330,900      353,700   $  385,300   $  360,700   $  394,800  

(1) Average daily revenue is defined as contract drilling revenues earned per operating day. An operating day is defined as a calendar day during which a rig is contracted to earn a dayrate during the firm contract period after commencement of operations.


TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS (continued)

                                   
      Utilization (2)  
      Three months ended    Nine months ended  
      September 30,    June 30,   September 30,    September 30,    September 30,   
      2016   2016   2015   2016   2015  
Ultra-deepwater floaters      45    43    65    46    66 %  
Harsh environment floaters      71    46    66    56    73 %  
Deepwater floaters      50    52    67    54    75 %  
Midwater floaters      42    48    78    43    84 %  
High-specification jackups      50    59    78    57    88 %  
Total drilling fleet      49    47    70    49    75 %  

(2) Rig utilization is defined as the total number of operating days divided by the total number of available rig calendar days in the measurement period, expressed as a percentage.

                                   
      Revenue Efficiency (3)  
      Three months ended    Nine months ended  
      September 30,    June 30,   September 30,    September 30,    September 30,   
      2016   2016   2015   2016   2015  
Ultra-deepwater floaters      100.1    97.2    91.5    97.1    95.4 %  
Harsh environment floaters      96.6    98.3    98.6    98.0    97.9 %  
Deepwater floaters      96.0    96.9    98.9    96.9    98.1 %  
Midwater floaters      103.5    98.6    98.2    99.4    94.6 %  
High-specification jackups      114.5    86.8    99.3    93.4    99.1 %  
Total drilling fleet      100.7    96.5    95.0    97.2    96.1 %  

(3) Revenue efficiency is defined as actual contract drilling revenues for the measurement period divided by the maximum revenue calculation for the measurement period, expressed as a percentage.  Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions.



Transocean Ltd. and subsidiaries
Supplemental Effective Tax Rate Analysis
(In US$ millions, except tax rates)

                                 
    Three months ended    Nine months ended  
    September 30,    June 30,   September 30,    September 30,    September 30,   
    2016   2016   2015   2016   2015  
Income from continuing operations before income taxes   $  235   $  104   $  344   $  669   $  347  
Add back (subtract):                                
Litigation matters      -      -      -      -      (788)  
Restructuring charges      4      8      3      17      20  
Loss on impairment of goodwill and other assets      11      20      13      34      1,839  
Gain on disposal of other assets, net      (3)      (4)      (1)      (8)      (6)  
Gain on retirement of debt      (110)      (38)      (7)      (148)      (7)  
Adjusted income from continuing operations before income taxes      137      90      352      564      1,405  
                                 
Income tax expense (benefit) from continuing operations      (9)      17      17      82      140  
Add back (subtract):                                
Litigation matters      -      -      -      -      (53)  
Restructuring charges      -      1      1      2      2  
Loss on impairment of goodwill and other assets      -      2      -      3      155  
Loss on disposal of other assets, net      -      -      -      -      1  
Changes in estimates (1)      38      (5)      9      34      9  
Adjusted income tax expense from continuing operations (2)   $  29   $  15   $  27   $  121   $  254  
                                 
Effective Tax Rate (3)      (3.8)    16.2    4.9    12.3    40.3 %
                                 
Effective Tax Rate, excluding discrete items (4)      21.2    16.3    7.5    21.5    18.0 %
  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 of allowances on deferred taxes and (c) other tax liabilities.
  2. The three and nine months ended September 30, 2016 includes $4 million of additional tax expense (benefit) reflecting the catch-up effect of an increase (decrease) in the annual effective tax rate from the previous quarter estimate.
  3. Our effective tax rate is calculated as income tax expense for continuing operations divided by income from continuing operations before income taxes.
  4. Our effective tax rate, excluding discrete items, is calculated as income tax expense for continuing operations, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes) divided by income from continuing operations before income tax expense excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes and estimating the annual effective tax rate.

Transocean Ltd. and subsidiaries
Non-GAAP Financial Measures and Reconciliations
Adjusted Net Income and Adjusted Diluted Earnings Per Share
(in US$ millions, except per share data)

                                             
                YTD   QTD   YTD   QTD   QTD  
                09/30/16   09/30/16   06/30/16   06/30/16   03/31/16  
Adjusted Net Income                                            
Net income attributable to controlling interest, as reported               $  555   $  229   $  326   $  77   $  249  
Add back (subtract):                                            
Restructuring charges                  15      4      11      7      4  
Loss on impairment of assets                  31      11      20      18      2  
Gain on disposal of assets, net                  (8)      (3)      (5)      (4)      (1)  
Gain on retirement of debt                  (148)      (110)      (38)      (38)      -  
(Income) loss from discontinued operations                  -      -      -      (1)      1  
Discrete tax items and other, net                  (34)      (38)      4      5      (1)  
Net income, as adjusted               $  411   $  93   $  318   $  64   $  254  
                                             
Adjusted Diluted Earnings Per Share:                                            
Diluted earnings (loss) per share, as reported               $  1.49   $  0.62   $  0.88   $  0.21   $  0.68  
Add back (subtract):                                            
Restructuring charges                  0.04      0.01      0.03      0.02      0.01  
Loss on impairment of assets                  0.08      0.03      0.05      0.04      -  
Gain on disposal of assets, net                  (0.02)      (0.01)      (0.01)      (0.01)      -  
Gain on retirement of debt                  (0.39)      (0.30)      (0.10)      (0.10)      -  
(Income) loss from discontinued operations                  -      -      -      -      -  
Discrete tax items and other, net                  (0.09)      (0.10)      0.01      0.01      -  
Diluted earnings per share, as adjusted               $  1.11   $  0.25   $  0.86   $  0.17   $  0.69  

                                             
    YTD   QTD   YTD   QTD   YTD   QTD   QTD  
    12/31/15   12/31/15   09/30/15   09/30/15   06/30/15   06/30/15   03/31/15  
Adjusted Net Income                                            
Net income (loss) attributable to controlling interest, as reported   $  791   $  611   $  180   $  321   $  (141)   $  342   $  (483)  
Add back (subtract):                                            
Litigation matters      (735)      -      (735)      -      (735)      (735)      -  
Restructuring charges      40      22      18      2      16      11      5  
Loss on impairment of assets      1,713      29      1,684      13      1,671      797      874  
Gain on disposal of assets, net      (12)      (5)      (7)      (1)      (6)      (5)      (1)  
Gain on retirement of debt      (23)      (16)      (7)      (7)      -      -      -  
Gain on disposal of assets in discontinued operations      (1)      -      (1)      (1)      -      -      -  
(Income) loss from discontinued operations      (1)      1      (2)      (3)      1      (1)      2  
Discrete tax items and other, net      (35)      (27)      (8)      (8)      -      (1)      1  
Net income, as adjusted   $  1,737   $  615   $  1,122   $  316   $  806   $  408   $  398  
                                             
Adjusted Diluted Earnings Per Share:                                            
Diluted earnings (loss) per share, as reported   $  2.16   $  1.66   $  0.49   $  0.88   $  (0.39)   $  0.93   $  (1.33)  
Add back (subtract):                                            
Litigation matters      (2.02)      -      (2.02)      -      (2.02)      (2.02)      -  
Restructuring charges      0.11      0.06      0.04      -      0.04      0.03      0.01  
Loss on impairment of assets      4.67      0.08      4.61      0.03      4.60      2.18      2.41  
Gain on disposal of assets, net      (0.02)      (0.01)      (0.02)      -      (0.02)      (0.01)      -  
Gain on retirement of debt      (0.06)      (0.04)      (0.02)      (0.02)      -      -      -  
Gain on disposal of assets in discontinued operations      -      -      -      -      -      -      -  
(Income) loss from discontinued operations      -      -      -      -      -      -      0.01  
Discrete tax items and other, net      (0.10)      (0.07)      (0.02)      (0.02)      -      -      -  
Diluted earnings per share, as adjusted   $  4.74   $  1.68   $  3.06   $  0.87   $  2.21   $  1.11   $  1.10