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The court initially permitted the transfer of the temporary import permit but did not rule on whether the temporary admission could be extended without the payment of a financial penalty in the form of Brazilian customs duties.&#160; In 2004, the Brazilian customs authorities issued an assessment totaling approximately $142&#160;million against our subsidiary based on the expiration of the temporary import permit.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow, sans-serif">In April 2007, the trial court ruled that the temporary admission granted to Schlumberger and then us had expired.&#160;&#160;This ruling allowed the Brazilian customs authorities to execute on their assessment.&#160; Following this ruling, the Brazilian customs authorities issued a revised assessment against our subsidiary and, as of June&#160;30, 2009, the U.S. dollar equivalent of this assessment was approximately $229&#160;million in aggregate.&#160; In September&#160;2007, we received a temporary ruling in our favor from a Brazilian federal court that the valuation method used by the Brazilian customs authorities was incorrect.&#160; This temporary ruling was confirmed in January&#160;2008 by the same Brazilian federal court, but it is still subject to review at the appellate levels in Brazil.&#160; We intend to continue to aggressively contest this valuation and the assessment.&#160; We have appealed the trial court&#8217;s ruling and have also filed for a renewed stay, which was granted but recently has been revoked in light of the appellate decision set forth below.&#160;&#160;In June&#160;2009, we received an initial unfavorable ruling at the first appellate court, which ruling remains subject to motions and appeal<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif">.&#160;</font> We expect that another order should nonetheless prevent enforcement of the whole amount in dispute<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif">,</font> and it is possible that further judicial or administrative proceedings may result from this matter.&#160; While the court had previously granted us the right to continue our appeal without the posting of a bond, it now is possible that we may be required to post a bond for up to the full amount of the assessment in connection with these proceedings.&#160; The first appellate court further found that Schlumberger is jointly and severally liable with us.&#160;&#160;We have also put Schlumberger on notice that we consider any assessment to be solely the responsibility of Schlumberger<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif">,</font> and we have initiated proceedings against Schlumberger seeking a declaratory judgment in this respect.&#160; These proceedings may be put on hold pending resolution of the assessment.&#160;&#160;At this point, we do not know whether the Brazilian customs authorities will continue to seek to recover the assessment solely from us.&#160; Schlumberger has denied any responsibility for this matter, but remains a party to the proceedings.&#160; We do not expect the liability, if any, resulting from this matter to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow, sans-serif">In the third quarter of 2006, we received tax assessments of approximately $139&#160;million from the state tax authorities of Rio de Janeiro in Brazil against one of our Brazilian subsidiaries for customs taxes on equipment imported into the state in connection with our operations.&#160;&#160;The assessments resulted from a preliminary finding by these authorities that our subsidiary&#8217;s record keeping practices were deficient.&#160;&#160;We currently believe that the substantial majority of these assessments are without merit.&#160;&#160;We filed an initial response with the Rio de Janeiro tax authorities on September&#160;9, 2006 refuting these additional tax assessments.&#160;&#160;In September&#160;2007, we received confirmation from the state tax authorities that they believe the additional tax assessments are valid, and as a result, we filed an appeal on September&#160;27, 2007 to the state Taxpayer&#8217;s Council contesting these assessments.&#160;&#160;While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect it to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.</font></div> <div style="DISPLAY: block; 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