Transocean Ltd. Reports Third Quarter 2012 Results
ZUG, SWITZERLAND, Nov 04, 2012 (Menafn - MARKETWIRE via COMTEX) --Transocean Ltd. RIG (six:RIGN)
--Third quarter 2012 revenues were 2.440 billion compared with 2.352
billion in the second quarter 2012;
--Operating and maintenance expenses for the third quarter were 1.338
billion, compared with 1.381 billion for the second quarter 2012.
Second quarter operating and maintenance expenses exclude 750 million
for estimated loss contingencies associated with the Macondo well
incident;
--Third quarter 2012 net loss attributable to controlling interest was
381 million, which included 880 million of net unfavorable items
primarily associated with the impairment of assets included in
discontinued operations. This compares with the second quarter 2012
net loss attributable to controlling interest of 304 million, which
included 621 million of net unfavorable items;
--Third quarter Annual Effective Tax Rate(3) from continuing operations
was 15.2 percent compared with 28.2 percent in the second quarter
2012;
--Third quarter net loss attributable to controlling interest was 1.06
per diluted share. After adjusting for net unfavorable items, adjusted
earnings from continuing operations were 499 million, or 1.37 per
diluted share;
--Cash flows from operating activities were 786 million in the third
quarter, compared with 459 million in the second quarter 2012;
--Revenue efficiency(1) from continuing operations was 94.3 percent in
the third quarter, compared with 92.1 percent in the second quarter
2012. Third quarter 2012 Ultra-Deepwater revenue efficiency was 95.8
percent, compared with 92.2 percent in the prior quarter. Fleet
utilization(2) from continuing operations was 77 percent in the third
quarter, compared with 72 percent in the second quarter 2012; and
--New contracts associated with continuing operations totaling 10.2
billion were secured in the Fleet Status Report periods July 18, 2012
through October 17, 2012. Backlog from continuing operations was 29.7
billion at October 17th, a net increase of 8.3 billion.
Transocean Ltd. RIG (six:RIGN) today reported a net lossattributable to controlling interest of 381 million, or 1.06 perdiluted share, for the three months ended September 30, 2012. Thirdquarter 2012 results included net unfavorable items of 880 million,or 2.43 per diluted share. The results compare with a net lossattributable to controlling interest of 32 million, or 0.10 perdiluted share, for the three months ended September 30, 2011. Thirdquarter 2011 results included net unfavorable items of 68 million,or 0.21 per diluted share, primarily associated with the company'sacquisition of Aker Drilling.
Net unfavorable items, after tax, impacting the third quarter of 2012included the following:
--878 million, or 2.43 per diluted share, loss on impairment of assets
included in discontinued operations primarily associated with exiting
the standard jackup market;
--48 million, or 0.13 per diluted share, net gain on the sale of two
floaters, Discoverer 534 and Jim Cunningham;
--30 million, or 0.08 per diluted share, loss from discontinued
operations. This includes 24 million, or 0.06 per diluted share
associated with the standard jackups; the remainder is primarily
associated with Challenger Minerals (North Sea) Limited; and
--20 million, or 0.05 per diluted share, loss due to discrete taxes
and other items.
After adjusting for these net unfavorable items, adjusted earnings fromcontinuing operations were 499 million, or 1.37 per diluted share.A reconciliation of the non-GAAP adjusted net income and dilutedearnings per share is attached.
Operations Quarterly Review
Revenues from continuing operations for the three months endedSeptember 30, 2012 were 2.440 billion, compared with revenues of2.352 billion during the three months ended June 30, 2012. Contractdrilling revenues increased 136 million mainly due to higher revenueefficiency(1) primarily on Ultra-Deepwater floaters, and lower out ofservice time. Revenue efficiency(1) from continuing operations was94.3 percent for the third quarter, compared with 92.1 percent in thesecond quarter 2012. Other revenues decreased 48 million to 130million for the third quarter 2012, compared with 178 million in theprior quarter, primarily due to decreased levels of low-margindrilling management services activity.
Operating and maintenance expenses from continuing operationsdecreased 43 million to 1.338 billion for the third quarter of2012. This compares with 1.381 billion for the second quarter of2012, excluding 750 million for estimated loss contingenciesassociated with the Macondo well incident. Contract drilling expensesincreased by 17 million due to annual pay raises, activityincreases, professional fees, and various other items, partly offsetby lower costs in the third quarter associated with rigs undergoingsurveys, contract preparation or other shipyard projects. The delayedcommencement of shipyard projects favorably impacted contractdrilling expenses in the third quarter. Costs associated with thecompany's drilling management services reporting unit decreased 60million mostly due to reduced activity.
General and administrative expenses were 69 million for the thirdquarter 2012, compared with 79 million in the previous quarter. Thedecrease was primarily due to transaction costs in the second quarterassociated with the Quantum exchange of its 50 percent interest inTransocean Pacific Drilling Inc. for Transocean Ltd.'s shares.
Income Taxes
Transocean's third quarter Effective Tax Rate(4) from continuingoperations was 16.5 percent, compared with 5.0 percent in the secondquarter 2012. The increase in the Effective Tax Rate(4) was due tochanges in estimates primarily for settlements of prior years' taxliabilities. Transocean's Annual Effective Tax Rate(3) fromcontinuing operations for the third quarter 2012 was 15.2 percent.This compares with 28.2 percent for the prior quarter. The decreasewas primarily due to changes in the blend of income that is taxedbased on gross revenues versus pre-tax income and rig movementsbetween taxing jurisdictions, among other things. Third quarter 2012income tax expense included a favorable adjustment of 31 million, or0.09 per diluted share, required to reflect a decrease in the AnnualEffective Tax Rate(3) to 20.5 percent for the nine months endedSeptember 30, 2012, from 24.6 percent for the first half of 2012.
Other Items
For the third quarter, interest expense, net of amounts capitalized,was 180 million, compared with 183 million in the second quarter2012. Capitalized interest for the third quarter 2012 was 12million, unchanged from the prior quarter. Interest income increasedto 15 million in the third quarter, compared with 13 million in thesecond quarter 2012.
Cash flows from operating activities were 786 million for the thirdquarter, compared with 459 million for the second quarter 2012.Capital expenditures from total operations were 225 million for thethird quarter, compared with 236 million in the second quarter of2012.
Forward-Looking Statements
Statements included in this news release, including those regardingestimates of Transocean's goodwill or long-lived asset impairmentsand the estimated loss contingencies associated with the Macondo wellincident, are forward-looking statements that involve certainassumptions. These statements are based on currently availablecompetitive, financial, and economic data along with our currentoperating plans and involve risks and uncertainties including, butnot limited to, market conditions, Transocean's results ofoperations, the effect and results of litigation, assessments andcontingencies, and other factors detailed in "Risk Factors" andelsewhere in Transocean's filings with the Securities and ExchangeCommission. Should one or more of these risks or uncertaintiesmaterialize (or the other consequences of such a development worsen),or should underlying assumptions prove incorrect, actual outcomes mayvary materially from those forecasted or expected. Transoceandisclaims any intention or obligation to update publicly or revisesuch statements, whether as a result of new information, futureevents or otherwise.
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. EST, 4:00p.m. CET, on Monday, November 5, 2012. To participate, dial 1719-325-4828 and refer to confirmation code 2448847 approximatelyfive to 10 minutes prior to the scheduled start time of the call.
In addition, the conference call will be simultaneously broadcastover the Internet in a listen-only mode and can be accessed bylogging onto Transocean's website at www.deepwater.com and selecting"Investor Relations." A file containing four charts that may bediscussed during the conference call, titled "3Q12 Charts," has beenposted to Transocean's website and can also be found by selecting"Investor Relations/Quarterly Toolkit." The conference call may alsobe accessed via the Internet at www.CompanyBoardroom.com by typing inTransocean's New York Stock Exchange trading symbol, "RIG."
A telephonic replay of the conference call should be available after1:00 p.m. EST, 7:00 p.m. CET, on November 5, 2012, and can beaccessed by dialing 1 719-457-0820 or 1 888-203-1112 and referringto the confirmation code 2448847. Also, a replay will be availablethrough the Internet and can be accessed by visiting either of theabove-referenced internet addresses. Both replay options will beavailable for approximately 30 days.
About Transocean
Transocean is a leading international provider of offshore contractdrilling services for oil and gas wells. The company specializes intechnically demanding sectors of the global offshore drillingbusiness with a particular focus on deepwater and harsh environmentdrilling services, and believes that it operates one of the mostversatile offshore drilling fleets in the world.
Transocean owns or has partial ownership interests in, and operates afleet of 115 mobile offshore drilling units consisting of 48High-Specification Floaters (Ultra-Deepwater, Deepwater andHarsh-Environment drilling rigs), 25 Midwater Floaters, nineHigh-Specification Jackups, 32 Standard Jackups and one swamp barge.Included in the 115 drilling units, the company has 32 StandardJackups and one swamp barge classified as discontinued operations. Inaddition, we have six Ultra-Deepwater Drillships and threeHigh-Specification Jackups under construction.
For more information about Transocean, please visit the website atwww.deepwater.com.
Notes
(1) Revenue efficiency is defined as actual revenue divided by thehighest amount of total revenue which could have been earned duringthe relevant period(s). See the accompanying schedule entitled"Revenue Efficiency."
(2) Utilization is defined as the total actual number of revenueearning days in the period as a percentage of the total number ofcalendar days in the period for all drilling rigs in the company'sfleet. See the accompanying schedule entitled "Utilization."
(3) Annual Effective Tax Rate is defined as income tax expense fromcontinuing operations excluding various discrete items (such aschanges in estimates and tax on items excluded from income beforeincome tax expense) divided by income from continuing operationsbefore income tax expense excluding gains on sales and similar itemspursuant to the accounting standards for income taxes. See theaccompanying schedule entitled "Supplemental Effective Tax RateAnalysis."
(4) Effective Tax Rate is defined as income tax expense fromcontinuing operations divided by income from continuing operationsbefore income taxes. See the accompanying schedule entitled"Supplemental Effective Tax Rate Analysis."
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three months endedNine months ended
September 30,September 30,
----------------------------------------
2012201120122011
------------------------------------
Operating revenues
Contract drilling revenues2,3101,8276,4985,396
Other revenues130164420576
------------------------------------
2,4401,9916,9185,972
------------------------------------
Costs and expenses
Operating and maintenance1,3381,3444,7313,915
Depreciation and amortization280281846821
General and administrative6967217200
------------------------------------
1,6871,6925,7944,936
------------------------------------
Loss on impairment--(210)-
Gain (loss) on disposal of
assets, net50(1)40(1)
------------------------------------
Operating income8032989541,035
------------------------------------
Other income (expense), net
Interest income1574327
Interest expense, net of
amounts capitalized(180)(151)(543)(443)
Other, net(8)(77)(32)(79)
------------------------------------
(173)(221)(532)(495)
------------------------------------
Income from continuing
operations before income tax
expense63077422540
Income tax expense1049396211
------------------------------------
Income (loss) from continuing
operations526(16)326329
Income (loss) from discontinued
operations, net of tax(909)(5)(994)116
------------------------------------
Net income (loss)(383)(21)(668)445
Net income (loss) attributable
to noncontrolling interest(2)11734
------------------------------------
Net income (loss) attributable
to controlling interest(381) (32) (675) 411
====================================
Earnings (loss) per share-basic
Earnings (loss) from
continuing operations1.47(0.08) 0.900.92
Earnings (loss) from
discontinued operations(2.53)(0.02)(2.80)0.36
------------------------------------
Earnings (loss) per share(1.06) (0.10) (1.90) 1.28
====================================
Earnings (loss) per share-
diluted
Earnings (loss) from
continuing operations1.47(0.08) 0.900.92
Earnings (loss) from
discontinued operations(2.53)(0.02)(2.80)0.36
------------------------------------
Earnings (loss) per share(1.06) (0.10) (1.90) 1.28
====================================
Weighted-average shares
outstanding
Basic359320354320
Diluted359320354320
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
September 30,December 31,
20122011
--------------------------
Assets
Cash and cash equivalents6,0014,017
Accounts receivable, net of allowance for
doubtful accounts of 28 at September 30,
2012 and December 31, 20112,1632,176
Materials and supplies, net of allowance for
obsolescence of 71 and 59 at September 30,
2012 and December 31, 2011, respectively597529
Deferred income taxes, net169142
Assets held for sale93026
Other current assets444646
--------------------------
Total current assets10,3047,536
--------------------------
Property and equipment26,56724,833
Property and equipment of consolidated
variable interest entities8172,252
Less accumulated depreciation6,9256,297
--------------------------
Property and equipment, net20,45920,788
--------------------------
Goodwill2,9873,217
Other assets1,5623,491
--------------------------
Total assets35,31235,032
==========================
Liabilities and equity
Accounts payable876880
Accrued income taxes25786
Debt due within one year2,7011,942
Debt of consolidated variable interest
entities due within one year28245
Other current liabilities2,8392,375
--------------------------
Total current liabilities6,7015,528
--------------------------
Long-term debt11,21110,756
Long-term debt of consolidated variable
interest entities177593
Deferred income taxes, net450514
Other long-term liabilities1,5171,898
--------------------------
Total long-term liabilities13,35513,761
--------------------------
Commitments and contingencies
Redeemable noncontrolling interest-116
Shares, CHF 15.00 par value, 402,282,355
authorized, 167,617,649 conditionally
authorized, and 373,830,649 and 365,135,298
issued at September 30, 2012 and December 31,
2011, respectively; 359,418,883 and
349,805,793 outstanding at September 30, 2012
and December 31, 2011, respectively5,1294,982
Additional paid-in capital7,4967,211
Treasury shares, at cost, 2,863,267 held at
September 30, 2012 and December 31, 2011(240)(240)
Retained earnings3,3994,180
Accumulated other comprehensive loss(512)(496)
--------------------------
Total controlling interest shareholders'
equity15,27215,637
--------------------------
Noncontrolling interest(16)(10)
--------------------------
Total equity15,25615,627
--------------------------
Total liabilities and equity35,31235,032
==========================
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months endedNine months ended
September 30,September 30,
----------------------------------------
2012201120122011
------------------------------------
Cash flows from operating
activities
Net income (loss)(383) (21) (668) 445
Adjustments to reconcile to
net cash provided by
operating activities
Amortization of drilling
contract intangibles(9)(12)(32)(32)
Depreciation and
amortization280281846821
Depreciation and
amortization of assets in
discontinued operations4880182258
Share-based compensation
expense24207274
Loss on impairment--210-
Loss on impairment of assets
in discontinued operations878791332
(Gain) loss on disposal of
assets, net(50)1(40)1
(Gain) loss on disposal of
assets in discontinued
operations, net11(70)(175)
Amortization of debt issue
costs, discounts and
premiums, net17335295
Deferred income taxes(61)(6)(104)30
Other, net12794785
Changes in deferred revenue,
net(64)(36)(69)7
Changes in deferred
expenses, net511830(66)
Changes in operating assets
and liabilities4247416(353)
------------------------------------
Net cash provided by operating
activities7864921,7851,222
------------------------------------
Cash flows from investing
activities
Capital expenditures(201)(124)(646)(633)
Capital expenditures for
discontinued operations(24)(13)(75)(37)
Investment in marketable
security-(199)-(199)
Proceeds from disposal of
assets, net178418912
Proceeds from disposal of
assets in discontinued
operations, net584196353
Payment for settlement of
forward exchange contract-(78)-(78)
Other, net7632(27)
------------------------------------
Net cash used in investing
activities(35)(320)(304)(609)
------------------------------------
Cash flows from financing
activities
Changes in short-term
borrowings, net-2(260)58
Proceeds from debt1,493-1,4935
Repayments of debt(264)(23)(584)(272)
Proceeds from restricted cash
investments106-298-
Deposits to restricted cash
investments(42)-(158)-
Distribution of qualifying
additional paid-in capital-(254)(278)(508)
Other, net(7)-(8)(4)
------------------------------------
Net cash provided by (used in)
financing activities1,286(275)503(721)
------------------------------------
Net increase (decrease) in cash
and cash equivalents2,037(103)1,984(108)
Cash and cash equivalents at
beginning of period3,9643,3494,0173,354
------------------------------------
Cash and cash equivalents at end
of period6,0013,2466,0013,246
====================================
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS
Operating Revenues (in millions) (1)
------------------------------------------------------
Nine months ended
Three months endedSeptember 30,
------------------------------------ -----------------
September 30, June 30, September 30,
20122012201120122011
------------- -------- ------------- -------- --------
Contract Drilling
Revenues
High-Specification
Floaters:
Ultra Deepwater
Floaters1,213 1,141 1,030 3,446 2,878
Deepwater
Floaters306327185876716
Harsh Environment
Floaters247264190766522
------------- -------- ------------- -------- --------
Total High-
Specification
Floaters1,7661,7321,4055,0884,116
Midwater Floaters4243383521,1081,129
High-Specification
Jackups1109358270119
------------- -------- ------------- -------- --------
Total Contract
Drilling Revenues -
continuing
operations2,3002,1631,8156,4665,364
------------- -------- ------------- -------- --------
Contract Intangible
Revenue1011123232
Other Revenues
Client Reimbursable
Revenues463439123107
Integrated Services
and Other-613642
Drilling Management
Services84138112291427
------------- -------- ------------- -------- --------
Total Other Revenues130178164420576
------------- -------- ------------- -------- --------
Total Revenue from
continuing
operations2,4402,3521,9916,9185,972
------------- -------- ------------- -------- --------
Discontinued
operations:
Standard Jackups245209237654710
Other Rigs7762120
Client Reimbursable
Revenues6751815
------------- -------- ------------- -------- --------
Total discontinued
operations258223248693745
------------- -------- ------------- -------- --------
------------- -------- ------------- -------- --------
Total Company2,698 2,575 2,239 7,611 6,717
============= ======== ============= ======== ========
Average Daily Revenue (1)
------------------------------------------------------
Nine months ended
Three months endedSeptember 30,
------------------------------------ -----------------
September 30, June 30, September 30,
20122012201120122011
------------- -------- ------------- -------- --------
Continuing
operations:
High-Specification
Floaters:
Ultra Deepwater
Floaters539,300 537,000 524,800 537,100 504,000
Deepwater
Floaters372,600379,200343,500370,800382,400
Harsh Environment
Floaters439,600433,200433,800449,500423,100
------------- -------- ------------- -------- --------
Total High-
Specification
Floaters486,200481,600478,000485,400466,800
Midwater Floaters284,800295,800287,400285,100310,600
High-Specification
Jackups156,700141,500115,000139,900112,500
------------- -------- ------------- -------- --------
Total continuing
operations:395,100401,000388,800396,700397,200
------------- -------- ------------- -------- --------
Discontinued
operations
Standard Jackups92,80090,800101,10091,900107,000
Other Rigs75,00077,80073,80075,40074,500
------------- -------- ------------- -------- --------
Total discontinued
operations92,20090,300100,10091,300105,700
------------- -------- ------------- -------- --------
------------- -------- ------------- -------- --------
Total Drilling Fleet298,300 305,400 289,800 301,500 298,100
============= ======== ============= ======== ========
(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)
------------------------------------------------------
Nine months ended
Three months endedSeptember 30,
------------------------------------ -----------------
September 30, June 30, September 30,
20122012201120122011
------------- -------- ------------- -------- --------
Continuing
operations:
High-Specification
Floaters:
Ultra Deepwater
Floaters91%87%79%87%79%
Deepwater
Floaters61%59%37%55%43%
Harsh Environment
Floaters87%96%95%89%90%
------------- -------- ------------- -------- --------
Total High-
Specification
Floaters81%79%67%77%68%
Midwater Floaters65%52%55%58%56%
High-Specification
Jackups84%83%66%82%50%
------------- -------- ------------- -------- --------
Total continuing
operations77%72%63%72%63%
------------- -------- ------------- -------- --------
Discontinued
Operations:
Standard Jackups66%56%49%57%46%
Other Rigs100%100%100%99%60%
------------- -------- ------------- -------- --------
Total discontinued
operations67%57%50%58%46%
------------- -------- ------------- -------- --------
------------- -------- ------------- -------- --------
Total Drilling Fleet73%66%58%67%56%
============= ======== ============= ======== ========
(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
-------------------------------------------------------
3Q 2012 2Q 2012 1Q 2012 4Q 2011 3Q 2011 FY 2011 FY 2010
------- ------- ------- ------- ------- ------- -------
Ultra Deepwater95.8%92.2%89.4%89.5%86.4%87.7%88.6%
Deepwater93.5%92.1%83.2%88.1%87.7%89.4%90.3%
Harsh Environment
Floaters95.5%98.1%97.8%98.0%94.4%97.4%96.0%
Midwater Floaters89.7%87.4%90.8%94.2%90.8%92.6%92.5%
High Specification
Jackups97.3%94.5%92.5%93.4%96.8%94.8%94.6%
------- ------- ------- ------- ------- ------- -------
Total continuing
operations94.3%92.1%89.9%91.3%88.5%90.1%90.8%
------- ------- ------- ------- ------- ------- -------
Standard Jackups95.4%97.4%97.9%96.6%98.3%97.8%97.4%
Others99.1%99.4%97.3%98.6%99.5%98.7%98.4%
------- ------- ------- ------- ------- ------- -------
Total discontinued
operations95.5%97.5%97.9%96.6%98.3%97.8%97.4%
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
Total Fleet94.5%92.5%90.6%91.9%89.5%90.9%91.7%
======= ======= ======= ======= ======= ======= =======
(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 US millions, except percentages)
Three months endedNine months ended
----------------------------------------------------
SeptemberJuneSeptemberSeptemberSeptember
30,30,30,30,30,
20122012201120122011
----------------------------------------------
Income (loss) from
continuing
operations before
income taxes630 (321) 77422540
Add back
(subtract):
Litigation matters8750-758-
Acquisition costs--515
Gain on disposal
of other assets,
net(51)--(51)-
Loss on impairment
of goodwill and
other assets---210-
Loss on redeemed
noncontrolling
interest-14-25-
Loss on forward
exchange contract--78-78
Gain on sale of
equity method
investment--(13)-(13)
Other, net(1)--(2)6
----------------------------------------------
Adjusted income from
continuing
operations before
income taxes5864431471,363616
Income tax (benefit)
expense from
continuing
operations104(16)9396211
Add back
(subtract):
Litigation
matters2--2-
Gain on disposal
of other assets(3)--(3)-
Loss on
impairment---30-
Changes in
estimates (1)(14)1417154(23)
Other, net----2
----------------------------------------------
Adjusted income tax
expense from
continuing
operations (2)89125100279190
==============================================
Effective Tax Rate
(3)16.5%5.0%120.8%22.7%39.1%
Annual Effective Tax
Rate (4)15.2%28.2%68.0%20.5%30.8%
(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 and nine months ended September 30, 2012 includes (31)
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) Effective Tax Rate is income tax expense divided by income before
income taxes.
(4) Annual Effective Tax Rate is income tax expense excluding various
discrete items (such as changes in estimates and tax on items excluded
from income before income taxes) divided by income before income taxes
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 Diluted Earnings Per Share
(in US millions, except per share data)
YTDQTRYTDQTRQTR
Adjusted Net Income09/30/1209/30/1206/30/1206/30/1203/31/12
----------------------------------------
Net income (loss)
attributable to
controlling interest, as
reported(675) (381) (294) (304) 10
Add back (subtract):
Litigation matters7566750750-
Loss on impairment of
goodwill and other
assets180-180-180
Gain on disposal of
assets, net(48)(48)---
Loss on redeemed
noncontrolling
interest25-251411
Loss on impairment of
discontinued
operations911878331221
(Gain) loss on sale of
discontinued
operations(70)-(70)(72)2
Loss from discontinued
operations152301225864
Discrete tax items and
other, net(154)14(168)(141)(27)
----------------------------------------
Net income, as adjusted1,077499578317261
========================================
Diluted Earnings Per Share
Diluted earnings (loss)
per share, as reported(1.90) (1.06) (0.83) (0.85) 0.03
Add back (subtract):
Litigation matters2.120.022.122.09-
Loss on impairment of
goodwill and other
assets0.50-0.51-0.51
Gain on disposal of
assets, net(0.13)(0.13)---
Loss on redeemed
noncontrolling
interest0.07-0.070.040.03
Loss on impairment of
discontinued
operations2.562.430.090.030.06
(Gain) loss on sale of
discontinued
operations(0.19)-(0.20)(0.20)0.01
Loss from discontinued
operations0.420.080.340.160.18
Discrete tax items and
other, net(0.44)0.03(0.47)(0.39)(0.08)
----------------------------------------
Diluted earnings per
share, as adjusted3.011.371.630.880.74
========================================
Adjusted NetYTDQTRYTDQTRYTDQTRQTR
Income12/31/11 12/31/11 09/30/11 09/30/11 06/30/11 06/30/11 03/31/11
-------- -------- -------- -------- -------- -------- --------
Net income
(loss)
attributable
to
controlling
interest, as
reported(5,754) (6,165) 411(32) 443124 319
Add back
(subtract):
Litigation
matters1,0001,000-----
Acquisition
costs221755---
Loss on
impairment
of
goodwill
and other
assets5,2015,201-----
Gain on
disposal
of assets,
net(13)-(13)(13)---
Loss on
marketable
security1313-----
Loss on
forward
exchange
contract78-7878---
Loss on
impairment
of
discontinued
operations3443052525-
(Gain) loss
on sale of
discontinued
operations(201)(24)(177)-(177)1(178)
Loss from
discontinued
operations865531-311120
Discrete
tax items
and other,
net16(10)26(7)331419
------------------------------------------- -------
Net income,
as adjusted4829139136355175 180
=========================================== =======
Diluted
Earnings Per
Share
Diluted
earnings
(loss) per
share, as
reported(17.88) (18.76) 1.28 (0.10) 1.380.38 0.99
Add back
(subtract):
Litigation
matters3.113.04-----
Acquisition
costs0.070.050.020.02---
Loss on
impairment
of
goodwill
and other
assets16.1515.83-----
Gain on
disposal
of assets,
net(0.04)-(0.04)(0.04)---
Loss on
marketable
security0.040.04-----
Loss on
forward
exchange
contract0.24-0.240.24---
Loss on
impairment
of
discontinued
operations0.110.010.090.020.080.08-
(Gain) loss
on sale of
discontinued
operations(0.62)(0.07)(0.53)-(0.54)-(0.55)
Loss from
discontinued
operations0.270.170.09-0.100.040.06
Discrete
tax items
and other,
net0.04(0.03)0.07(0.03)0.090.050.06
------------------------------------------- -------
Diluted
earnings per
share, as
adjusted1.490.281.220.111.110.55 0.56
=========================================== =======
Note: 2010 has been removed pending restatement for discontinued
operations.
SOURCE: Transocean Ltd.
Copyright 2012 Marketwire, Inc., All rights reserved.
