10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2011

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 000-53604

NOBLE CORPORATION

(Exact name of registrant as specified in its charter)

Switzerland	98-0619597
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)

Dorfstrasse 19A, Baar, Switzerland 6340
(Address of principal executive offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: 41 (41) 761-65-55

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Shares, Par Value 3.54 CHF per Share	New York Stock Exchange

Commission file number: 001-31306

NOBLE CORPORATION

(Exact name of registrant as specified in its charter)

Cayman Islands
(State or other jurisdiction of incorporation or organization) 98-0366361
(I.R.S. employer identification number)

Suite 3D, Landmark Square, 64 Earth Close, P.O. Box 31327 George Town, Grand Cayman, Cayman Islands, KY1-1206

(Address of principal executive offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (345) 938-0293

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether each registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Noble-Swiss:	Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
Noble-Cayman:	Large accelerated filer o	Accelerated filer o	Non-accelerated filer þ	Smaller reporting company o

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No þ

Number of shares outstanding and trading at October 28, 2011: Noble Corporation (Switzerland) — 252,437,480

Number of shares outstanding at October 28, 2011: Noble Corporation (Cayman Islands) — 261,245,693

Noble Corporation, a Cayman Islands company and a wholly owned subsidiary of Noble Corporation, a Swiss corporation, meets the conditions set forth in General Instructions H(1) (a) and (b) to Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format contemplated by paragraphs (b) and (c) of General Instruction H(2) of Form 10-Q.

TABLE OF CONTENTS

	Page
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Noble Corporation (Noble-Swiss) Financial Statements:
Consolidated Balance Sheet as of September 30, 2011 and December 31, 2010		3
Consolidated Statement of Income for the three and nine months ended September 30, 2011 and 2010		4
Consolidated Statement of Cash Flows for the nine months ended September 30, 2011 and 2010		5
Consolidated Statement of Equity for the nine months ended September 30, 2011 and 2010		6
Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2011 and 2010		7
Noble Corporation (Noble-Cayman) Financial Statements:
Consolidated Balance Sheet as of September 30, 2011 and December 31, 2010		8
Consolidated Statement of Income for the three and nine months ended September 30, 2011 and 2010		9
Consolidated Statement of Cash Flows for the nine months ended September 30, 2011 and 2010		10
Consolidated Statement of Equity for the nine months ended September 30, 2011 and 2010		11
Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2011 and 2010		12
Notes to Combined Consolidated Financial Statements		13
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations		38
Item 3 Quantitative and Qualitative Disclosures About Market Risk		57
Item 4 Controls and Procedures		58
PART II OTHER INFORMATION
Item 1 Legal Proceedings		59
Item 1A Risk Factors		59
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds		60
Item 6 Exhibits		60
SIGNATURES		61
Index to Exhibits		62
Exhibit 3.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

This combined Quarterly Report on Form 10-Q is separately filed by Noble Corporation, a Swiss corporation (“Noble-Swiss”), and Noble Corporation, a Cayman Islands company (“Noble-Cayman”). Information in this filing relating to Noble-Cayman is filed by Noble-Swiss and separately by Noble-Cayman on its own behalf. Noble-Cayman makes no representation as to information relating to Noble-Swiss (except as it may relate to Noble-Cayman) or any other affiliate or subsidiary of Noble-Swiss. Since Noble-Cayman meets the conditions specified in General Instructions H(1)(a) and (b) to Form 10-Q, it is permitted to use the reduced disclosure format for wholly owned subsidiaries of reporting companies. Accordingly, Noble-Cayman has omitted from this report the information called for by Item 3 (Quantitative and Qualitative Disclosures about Market Risk) of Part I of Form 10-Q and the following items of Part II of Form 10-Q: Item 2 (Unregistered Sales of Equity Securities and Use of Proceeds) and Item 3 (Defaults upon Senior Securities).

This report should be read in its entirety as it pertains to each Registrant. Except where indicated, the Consolidated Financial Statements and related Notes are combined. References in this Quarterly Report on Form 10-Q to “Noble,” the “Company,” “we,” “us,” “our” and words of similar meaning refer collectively to Noble-Swiss and its consolidated subsidiaries, including Noble-Cayman.

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands)

(Unaudited)

	September 30,			December 31,
	2011			2010
ASSETS
Current assets
Cash and cash equivalents	$	197,015		$	337,871
Accounts receivable		601,161			387,414
Taxes receivable		57,335			81,066
Prepaid expenses		61,166			35,502
Other current assets		84,767			69,941
Total current assets		1,001,444			911,794
Property and equipment, at cost		14,420,267			12,643,866
Accumulated depreciation		(2,999,235	)		(2,595,779	)
Property and equipment, net		11,421,032			10,048,087
Other assets		529,057			342,506
Total assets	$	12,951,533		$	11,302,387
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	—		$	80,213
Accounts payable		320,053			374,814
Accrued payroll and related costs		124,317			125,663
Interest payable		22,129			40,260
Taxes payable		89,700			96,448
Other current liabilities		93,651			84,049
Total current liabilities		649,850			801,447
Long-term debt		3,811,866			2,686,484
Deferred income taxes		299,625			258,822
Other liabilities		218,523			268,000
Total liabilities		4,979,864			4,014,753
Commitments and contingencies
Shareholders’ equity
Shares; 252,718 and 262,415 shares outstanding		796,067			917,684
Treasury shares, at cost; 285 and 10,140 shares		(10,531	)		(373,967	)
Additional paid-in capital		49,010			39,006
Retained earnings		6,549,441			6,630,500
Accumulated other comprehensive loss		(56,212	)		(50,220	)
Total shareholders’ equity		7,327,775			7,163,003
Noncontrolling interests		643,894			124,631
Total equity		7,971,669			7,287,634
Total liabilities and equity	$	12,951,533		$	11,302,387

See accompanying notes to the unaudited consolidated financial statements.

3

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Operating revenues
Contract drilling services	$	704,892		$	584,919		$	1,837,047		$	2,081,075
Reimbursables		17,438			19,177			63,851			57,163
Labor contract drilling services		15,564			7,887			43,123			23,704
Other		8			635			766			1,449
		737,902			612,618			1,944,787			2,163,391
Operating costs and expenses
Contract drilling services		358,547			315,844			1,001,638			845,870
Reimbursables		13,971			14,351			49,797			44,459
Labor contract drilling services		8,053			5,302			25,326			16,570
Depreciation and amortization		166,213			143,282			487,454			385,366
Selling, general and administrative		27,536			25,482			72,883			71,261
Gain on contract extinguishments, net		—			—			(21,202	)		—
		574,320			504,261			1,615,896			1,363,526
Operating income		163,582			108,357			328,891			799,865
Other income (expense)
Interest expense, net of amount capitalized		(11,530	)		(4,144	)		(45,400	)		(5,119	)
Interest income and other, net		1,117			2,561			3,175			7,193
Income before income taxes		153,169			106,774			286,666			801,939
Income tax provision		(17,614	)		(20,287	)		(42,481	)		(126,801	)
Net income		135,555			86,487			244,185			675,138
Net income attributable to noncontrolling interests		(238	)		(467	)		(290	)		(467	)
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Net income per share
Basic	$	0.53		$	0.34		$	0.96		$	2.63
Diluted	$	0.53		$	0.34		$	0.96		$	2.62

See accompanying notes to the unaudited consolidated financial statements.

4

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2011			2010
Cash flows from operating activities
Net income	$	244,185		$	675,138
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		487,454			385,366
Gain on contract extinguishments, net		(21,202	)		—
Deferred income taxes		(34,549	)		(29,586	)
Share-based compensation expense		26,857			26,906
Net change in other assets and liabilities		(228,299	)		227,873
Net cash from operating activities		474,446			1,285,697
Cash flows from investing activities
Capital expenditures		(1,987,988	)		(886,093	)
Change in accrued capital expenditures		(48,782	)		4,213
Refund from contract extinguishments		18,642			—
Acquisition of FDR Holdings, Ltd., net of cash acquired		—			(1,629,644	)
Net cash from investing activities		(2,018,128	)		(2,511,524	)
Cash flows from financing activities
Increase in bank credit facilities, net		675,000			—
Proceeds from issuance of senior notes, net of debt issuance costs		1,087,833			1,238,074
Contributions from joint venture partners		481,000			35,000
Payments of joint venture debt		(693,494	)		—
Settlement of interest rate swaps		(29,032	)		(2,041	)
Par value reduction payments		(114,453	)		(193,869	)
Financing costs on credit facilities		(2,835	)		—
Proceeds from employee stock transactions		9,018			9,703
Repurchases of employee shares surrendered for taxes		(10,211	)		(9,961	)
Repurchases of shares		—			(219,330	)
Net cash from financing activities		1,402,826			857,576
Net change in cash and cash equivalents		(140,856	)		(368,251	)
Cash and cash equivalents, beginning of period		337,871			735,493
Cash and cash equivalents, end of period	$	197,015		$	367,242

See accompanying notes to the unaudited consolidated financial statements.

5

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(In thousands)

(Unaudited)

																Accumulated
							Additional									Other
	Shares						Paid-in			Retained			Treasury			Comprehensive			Noncontrolling		Total
	Balance			Par Value			Capital			Earnings			Shares			Loss			Interests		Equity
Balance at December 31, 2009		261,975		$	1,130,607		$	—		$	5,855,737		$	(143,031	)	$	(54,881	)	$	—	$	6,788,432
Employee related equity activity
Share-based compensation expense		—			—			26,906			—			—			—			—		26,906
Issuance of share-based compensation shares		77			335			(335	)		—			—			—			—		—
Contribution to employee benefit plans		8			30			194			—			—			—			—		224
Exercise of stock options		447			1,762			7,717			—			—			—			—		9,479
Tax benefit of stock options exercised		—			—			5,556			—			—			—			—		5,556
Restricted shares forfeited or repurchased for taxes		(183	)		(804	)		960			1,335			(11,452	)		—			—		(9,961	)
Repurchases of shares		—			—			—			—			(219,330	)		—			—		(219,330	)
Net income		—			—			—			674,671			—			—			467		675,138
Par value reduction payments		—			(184,220	)		(9,648	)		(1	)		—			—			—		(193,869	)
Noncontrolling interests from FDR Holdings, Ltd. acquisition		—			—			—			—			—			—			124,628		124,628
Other comprehensive income, net		—			—			—			—			—			(6,113	)		—		(6,113	)
Balance at September 30, 2010		262,324		$	947,710		$	31,350		$	6,531,742		$	(373,813	)	$	(60,994	)	$	125,095	$	7,201,090
Balance at December 31, 2010		262,415		$	917,684		$	39,006		$	6,630,500		$	(373,967	)	$	(50,220	)	$	124,631	$	7,287,634
Employee related equity activity
Share-based compensation expense		—			—			26,857			—			—			—			—		26,857
Issuance of share-based compensation shares		248			844			(837	)		—			—			—			—		7
Exercise of stock options		490			1,629			7,104			—			—			—			—		8,733
Tax benefit of stock options exercised		—			—			278			—			—			—			—		278
Restricted shares forfeited or repurchased for taxes		(319	)		(1,107	)		1,107			—			(10,211	)		—			—		(10,211	)
Retirement of treasury shares		(10,116	)		(33,035	)		—			(340,612	)		373,647			—			—		—
Settlement of FIN 48 provision		—			—			—			15,658			—			—			—		15,658
Net income		—			—			—			243,895			—			—			290		244,185
Equity contribution by joint venture partner		—			—			—			—			—			—			518,973		518,973
Par value reduction payments		—			(89,948	)		(24,505	)		—			—			—			—		(114,453	)
Other comprehensive income, net		—			—			—			—			—			(5,992	)		—		(5,992	)
Balance at September 30, 2011		252,718		$	796,067		$	49,010		$	6,549,441		$	(10,531	)	$	(56,212	)	$	643,894	$	7,971,669

See accompanying notes to the unaudited consolidated financial statements.

6

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net income	$	135,555		$	86,487		$	244,185		$	675,138
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(4,929	)		4,198			(547	)		(2,263	)
Gain (loss) on foreign currency forward contracts		(9,654	)		4,762			(7,141	)		1,828
Loss on interest rate swaps		—			(7,586	)		(366	)		(7,586	)
Amortization of deferred pension plan amounts		687			634			2,062			1,908
Other comprehensive income (loss), net		(13,896	)		2,008			(5,992	)		(6,113	)
Net comprehensive income attributable to noncontrolling interests		(238	)		(467	)		(290	)		(467	)
Comprehensive income attributable to Noble Corporation	$	121,421		$	88,028		$	237,903		$	668,558

See accompanying notes to the unaudited consolidated financial statements.

7

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands)

(Unaudited)

	September 30,			December 31,
	2011			2010
ASSETS
Current assets
Cash and cash equivalents	$	192,005		$	333,399
Accounts receivable		601,161			387,414
Taxes receivable		57,335			81,066
Prepaid expenses		57,531			33,232
Other current assets		82,690			69,821
Total current assets		990,722			904,932
Property and equipment, at cost		14,386,421			12,614,974
Accumulated depreciation		(2,994,486	)		(2,594,954	)
Property and equipment, net		11,391,935			10,020,020
Other assets		529,141			342,592
Total assets	$	12,911,798		$	11,267,544
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	—		$	80,213
Accounts payable		319,888			374,559
Accrued payroll and related costs		112,902			120,634
Interest payable		22,129			40,260
Taxes payable		86,321			94,132
Other current liabilities		93,184			83,759
Total current liabilities		634,424			793,557
Long-term debt		3,811,866			2,686,484
Deferred income taxes		299,625			258,822
Other liabilities		218,523			268,026
Total liabilities		4,964,438			4,006,889
Commitments and contingencies
Shareholders’ equity
Ordinary shares; 261,246 shares outstanding		26,125			26,125
Capital in excess of par value		447,040			416,232
Retained earnings		6,886,513			6,743,887
Accumulated other comprehensive loss		(56,212	)		(50,220	)
Total shareholders’ equity		7,303,466			7,136,024
Noncontrolling interests		643,894			124,631
Total equity		7,947,360			7,260,655
Total liabilities and equity	$	12,911,798		$	11,267,544

See accompanying notes to the unaudited consolidated financial statements.

8

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Operating revenues
Contract drilling services	$	704,892		$	584,919		$	1,837,047		$	2,081,075
Reimbursables		17,438			19,177			63,851			57,163
Labor contract drilling services		15,564			7,887			43,123			23,704
Other		8			635			766			1,449
		737,902			612,618			1,944,787			2,163,391
Operating costs and expenses
Contract drilling services		349,626			315,787			980,662			839,652
Reimbursables		13,971			14,351			49,797			44,459
Labor contract drilling services		8,053			5,302			25,326			16,570
Depreciation and amortization		165,719			143,059			486,010			384,775
Selling, general and administrative		17,637			16,715			48,810			48,137
Gain on contract extinguishments, net		—			—			(21,202	)		—
		555,006			495,214			1,569,403			1,333,593
Operating income		182,896			117,404			375,384			829,798
Other income (expense)
Interest expense, net of amount capitalized		(11,530	)		(4,147	)		(45,400	)		(5,122	)
Interest income and other, net		1,884			1,210			3,978			6,320
Income before income taxes		173,250			114,467			333,962			830,996
Income tax provision		(17,298	)		(19,401	)		(41,480	)		(124,340	)
Net income		155,952			95,066			292,482			706,656
Net income attributable to noncontrolling interests		(238	)		(467	)		(290	)		(467	)
Net income attributable to Noble Corporation	$	155,714		$	94,599		$	292,192		$	706,189

See accompanying notes to the unaudited consolidated financial statements.

9

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2011			2010
Cash flows from operating activities
Net income	$	292,482		$	706,656
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		486,010			384,775
Gain on contract extinguishments, net		(21,202	)		—
Deferred income taxes		(34,549	)		(29,586	)
Capital contribution by parent — share-based compensation		15,150			15,519
Net change in other assets and liabilities		(235,017	)		203,384
Net cash from operating activities		502,874			1,280,748
Cash flows from investing activities
Capital expenditures		(1,983,034	)		(885,623	)
Change in accrued capital expenditures		(48,782	)		4,213
Refund from contract extinguishments		18,642			—
Acquisition of FDR Holdings, Ltd., net of cash acquired		—			(1,629,644	)
Net cash from investing activities		(2,013,174	)		(2,511,054	)
Cash flows from financing activities
Increase in bank credit facilities, net		675,000			—
Proceeds from issuance of senior notes, net of debt issuance costs		1,087,833			1,238,074
Contributions from joint venture partners		481,000			35,000
Payments of joint venture debt		(693,494	)		—
Settlement of interest rate swaps		(29,032	)		(2,041	)
Financing costs on credit facilities		(2,835	)		—
Distributions to parent company, net		(149,566	)		(422,537	)
Net cash from financing activities		1,368,906			848,496
Net change in cash and cash equivalents		(141,394	)		(381,810	)
Cash and cash equivalents, beginning of period		333,399			726,225
Cash and cash equivalents, end of period	$	192,005		$	344,415

See accompanying notes to the unaudited consolidated financial statements.

10

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(In thousands)

(Unaudited)

										Accumulated
					Capital in					Other
	Shares				Excess of		Retained			Comprehensive			Noncontrolling		Total
	Balance		Par Value		Par Value		Earnings			Loss			Interests		Equity
Balance at December 31, 2009		261,246	$	26,125	$	368,374	$	6,609,578		$	(54,881	)	$	—	$	6,949,196
Net income		—		—		—		706,189			—			467		706,656
Capital contributions by parent — share-based compensation		—		—		15,519		—			—			—		15,519
Distributions to parent		—		—		—		(422,537	)		—			—		(422,537	)
Noncontrolling interests from FDR Holdings, Ltd. acquisition		—		—		—		—			—			124,628		124,628
Other comprehensive income (loss), net		—		—		—		—			(6,113	)		—		(6,113	)
Balance at September 30, 2010		261,246	$	26,125	$	383,893	$	6,893,230		$	(60,994	)	$	125,095	$	7,367,349
Balance at December 31, 2010		261,246	$	26,125	$	416,232	$	6,743,887		$	(50,220	)	$	124,631	$	7,260,655
Net income		—		—		—		292,192			—			290		292,482
Capital contributions by parent — share-based compensation		—		—		15,150		—			—			—		15,150
Distributions to parent		—		—		—		(149,566	)		—			—		(149,566	)
Settlement of FIN 48 provision		—		—		15,658		—			—			—		15,658
Noncontrolling interest contributions		—		—		—		—			—			518,973		518,973
Other comprehensive income (loss), net		—		—		—		—			(5,992	)		—		(5,992	)
Balance at September 30, 2011		261,246	$	26,125	$	447,040	$	6,886,513		$	(56,212	)	$	643,894	$	7,947,360

See accompanying notes to the unaudited consolidated financial statements.

11

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net income	$	155,952		$	95,066		$	292,482		$	706,656
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(4,929	)		4,198			(547	)		(2,263	)
Gain (loss) on foreign currency forward contracts		(9,654	)		4,762			(7,141	)		1,828
Loss on interest rate swaps		—			(7,586	)		(366	)		(7,586	)
Amortization of deferred pension plan amounts		687			634			2,062			1,908
Other comprehensive income (loss), net		(13,896	)		2,008			(5,992	)		(6,113	)
Net comprehensive income attributable to noncontrolling interests		(238	)		(467	)		(290	)		(467	)
Comprehensive income attributable to Noble Corporation	$	141,818		$	96,607		$	286,200		$	700,076

See accompanying notes to the unaudited consolidated financial statements.

12

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Note 1 — Organization and Basis of Presentation

Noble Corporation, a Swiss corporation, is a leading offshore drilling contractor for the oil and gas industry. At September 30, 2011, our fleet consisted of 79 mobile offshore drilling units located worldwide as follows: 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Additionally, we have one floating production storage and offloading unit (“FPSO”). At September 30, 2011, we had 13 units under construction as follows:

• seven dynamically positioned, ultra-deepwater, harsh environment drillships, including two Globetrotter-class drillships and one Bully-class drillship, and

• six high-specification heavy duty, harsh environment jackup rigs.

Our global fleet is currently located in the following areas: the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian Pacific. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921.

Noble-Cayman is a direct, wholly-owned subsidiary of Noble-Swiss, our publicly-traded parent company. Noble-Swiss’ principal asset is all of the shares of Noble-Cayman. Noble-Cayman has no public equity outstanding. The consolidated financial statements of Noble-Swiss include the accounts of Noble-Cayman, and Noble-Swiss conducts substantially all of its business through Noble-Cayman and its subsidiaries.

The accompanying unaudited consolidated financial statements of Noble-Swiss and Noble-Cayman have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) as they pertain to Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal recurring nature. The December 31, 2010 Consolidated Balance Sheets presented herein are derived from the December 31, 2010 audited consolidated financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2010, filed by both Noble-Swiss and Noble-Cayman. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Certain amounts in prior periods have been reclassified to conform to the current year presentation. Taxes payable in the December 31, 2010 Consolidated Balance Sheets was reported net of approximately $81 million in taxes receivable. During the second quarter of 2011, we determined that a right of offset in certain taxable jurisdictions did not exist for these receivables, and they are now being disclosed separately as a current asset. For the December 31, 2010 Consolidated Balance Sheets presented herein, these amounts have been reclassified to conform to the current year presentation. We believe that this reclassification is immaterial, as it did not have a material impact on our financial position, working capital, results of operations or cash flows from operations.

Note 2 — Acquisition of FDR Holdings Limited

On July 28, 2010, Noble-Swiss and Noble AM Merger Co., a Cayman Islands company and indirect wholly-owned subsidiary of Noble-Swiss (“Merger Sub”), completed the acquisition of FDR Holdings Limited, a Cayman Islands company (“Frontier”). Under the terms of the Agreement and Plan of Merger with Frontier and certain of Frontier’s shareholders, Merger Sub merged with and into Frontier, with Frontier surviving as an indirect wholly-owned subsidiary of Noble-Swiss and a wholly-owned subsidiary of Noble-Cayman. The Frontier acquisition was for a purchase price of approximately $1.7 billion in cash plus liabilities assumed and strategically expanded and enhanced our global fleet. Frontier’s results of operations were included in our results beginning July 28, 2010. We funded the cash consideration paid at closing of approximately $1.7 billion using proceeds from our July 2010 offering of senior notes and existing cash on hand.

13

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

The following unaudited pro forma financial information for the three and nine months ended September 30, 2010 gives effect to the Frontier acquisition as if it had occurred at January 1, 2009. The pro forma results are based on historical data and are not intended to be indicative of the results of future operations.

	Three months		Nine months
	ended		ended
	September 30, 2010		September 30, 2010
Total operating revenues	$	647,700	$	2,339,889
Net income		85,282		616,358
Net income per share	$	0.33	$	2.40

Note 3 — Consolidated Joint Ventures

In connection with the Frontier acquisition, we acquired Frontier’s 50 percent interest in two joint ventures, each with a subsidiary of Royal Dutch Shell, PLC (“Shell”), for the construction and operation of the two Bully-class drillships. Since these entities’ equity at risk is insufficient to permit them to carry on their activities without additional financial support, they each meet the criteria for a variable interest entity. We have determined that we are the primary beneficiary for accounting purposes. Accordingly, we consolidate the entities in our consolidated financial statements after eliminating intercompany transactions. Shell’s equity interests are presented as noncontrolling interests on our Consolidated Balance Sheets.

In the first quarter of 2011, the joint venture credit facilities, which had a combined outstanding balance of $693 million, were repaid in full through contributions to the joint ventures from Noble and Shell. Shell contributed $361 million in equity to fund their portion of the repayment of joint venture credit facilities and related interest rate swaps, which were settled concurrent with the repayment and termination of the joint venture credit facilities.

In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes was 10%, payable semi-annually in arrears and in kind on June 30 and December 31 commencing in June 2011. The purpose of these notes was to provide additional liquidity to the joint ventures in connection with the shipyard construction of the Bully vessels.

In April 2011, the Bully joint venture partners entered into a subscription agreement, pursuant to which each partner was issued equity in each of the Bully joint ventures in exchange for the cancellation of all outstanding joint venture partner notes. The subscription agreement converted all joint venture partner notes into equity of the respective joint venture. The total capital contributed as a result of these agreements was $146 million, which included $142 million in outstanding notes, plus accrued interest. Our portion of the capital contribution, totaling $73 million, was eliminated in consolidation.

In April 2011, the Bully joint venture partners also entered into capital contribution agreements whereby capital calls up to a total of $360 million can be made for funds needed to complete the projects. As of September 30, 2011, the total capital contributed under these agreements was $170 million. Subsequent to the third quarter, an additional $60 million of capital was contributed under these agreements.

At September 30, 2011, the combined carrying amount of the drillships was $1.3 billion, which was primarily funded through partner equity contributions.

14

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Note 4 — Share Data

Share capital

The following is a detail of Noble-Swiss’ share capital as of September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Shares outstanding and trading		252,433		252,275
Treasury shares		285		10,140
Total shares outstanding		252,718		262,415
Treasury shares held for share-based compensation plans		13,432		13,851
Total shares authorized for issuance		266,150		276,266
Par value per share (in Swiss Francs)		3.54		3.93

Shares authorized for issuance by Noble-Swiss at September 30, 2011 totaled 266.2 million shares and include 0.3 million shares held in treasury and 13.4 million treasury shares held by a wholly-owned subsidiary. Repurchased treasury shares are recorded at cost, and include shares repurchased pursuant to our approved share repurchase program discussed below and shares surrendered by employees for taxes payable upon the vesting of restricted stock.

Share repurchases are made pursuant to the share repurchase program that our Board of Directors authorized and adopted. All shares repurchased under our share repurchase program are held in treasury. The number of shares that we may hold in treasury is limited under Swiss law. At September 30, 2011, 6.8 million shares remained available for repurchase under previous authorization by the Board of Directors. No shares have been repurchased under this authorization during the nine months ended September 30, 2011.

During July 2011, after making the required filings with the Swiss Commercial Register, 10.1 million repurchased shares held in treasury were cancelled and the total number of shares authorized for issuance was reduced to 266.2 million shares.

Our Board of Directors may further increase Noble-Swiss’ share capital through the issuance of up to 138.1 million conditionally authorized registered shares without obtaining shareholder approval. The issuance of these conditionally authorized registered shares is subject to certain conditions regarding their use.

15

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Earnings per share

The following table sets forth the computation of basic and diluted earnings per share for Noble-Swiss:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Allocation of net income
Basic
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,415	)		(828	)		(2,487	)		(6,416	)
Net income to common shareholders — basic	$	133,902		$	85,192		$	241,408		$	668,255
Diluted
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,412	)		(825	)		(2,481	)		(6,394	)
Net income to common shareholders — diluted	$	133,905		$	85,195		$	241,414		$	668,277
Weighted average shares outstanding — basic		251,580			252,513			251,327			253,944
Incremental shares issuable from assumed exercise of stock options		449			671			640			855
Weighted average shares outstanding — diluted		252,029			253,184			251,967			254,799
Weighted average unvested share-based payment awards		2,658			2,453			2,589			2,438
Earnings per share
Basic	$	0.53		$	0.34		$	0.96		$	2.63
Diluted	$	0.53		$	0.34		$	0.96		$	2.62

Only those items having a dilutive impact on our basic earnings per share are included in diluted earnings per share. At September 30, 2011, stock options totaling approximately 1.1 million were excluded from the diluted earnings per share as they were not dilutive as compared to 0.8 million at September 30, 2010.

Note 5 — Property and Equipment

Property and equipment, at cost, as of September 30, 2011 and December 31, 2010 consisted of the following:

	2011		2010
Drilling equipment and facilities	$	9,908,049	$	8,900,266
Construction in progress		4,318,705		3,571,017
Other		193,513		172,583
	$	14,420,267	$	12,643,866

Capital expenditures, including capitalized interest, totaled $2.0 billion and $886 million for the nine months ended September 30, 2011 and 2010, respectively. Capital expenditures for 2010 do not include the fair value of assets acquired as part of the Frontier acquisition. Capital expenditures for 2011 consisted of the following:

• $1.3 billion for newbuild construction;

• $463 million for major projects, including $130 million to upgrade two drillships currently operating in Brazil;

16

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

• $156 million for other capitalized expenditures, including major maintenance and regulatory expenditures which generally have useful lives ranging from 3 to 5 years; and

• $88 million in capitalized interest.

Interest is capitalized on construction-in-progress at the weighted average cost of debt outstanding during the period of construction. Capitalized interest was $32 million and $88 million for the three and nine months ended September 30, 2011, respectively, as compared to $25 million and $51 million for the three and nine months ended September 30, 2010, respectively.

Note 6 — Gain on contract extinguishments, net

In January 2011, we announced the signing of a Memorandum of Understanding (“MOU”) with Petroleo Brasileiro S.A. (“Petrobras”) regarding operations in Brazil. Under the terms of the MOU, we agreed to substitute the Noble Phoenix, then under contract with Shell in Southeast Asia, for the Noble Muravlenko. In January 2011, Shell agreed to release the Noble Phoenix from its contract, which was effective in March 2011. During the second quarter of 2011, Petrobras formally approved the rig substitution. We expect that acceptance of the Noble Phoenix will take place in the first quarter of 2012. In connection with the cancelation of the contract with Shell on the Noble Phoenix, we recognized a non-cash gain of approximately $52.5 million during the first quarter of 2011, which represented the unamortized fair value of the in-place contract assumed in connection with the Frontier acquisition.

Also in January 2011, as a result of the substitution discussed above, we reached a decision not to proceed with the previously announced reliability upgrade to the Noble Muravlenko that was scheduled to take place in 2013. As a result, we incurred a non-cash charge of approximately $32.6 million related to the termination of outstanding shipyard contracts.

In February 2011, the outstanding balances of the Bully joint venture credit facilities, which totaled $693 million, were repaid in full and the credit facilities terminated using a portion of the proceeds from our February 2011 debt offering and equity contributions from our joint venture partner. In addition, the related interest rate swaps were settled and terminated concurrent with the repayment and termination of the credit facilities. As a result of these transactions, we recognized a gain of approximately $1.3 million during the first quarter of 2011.

Note 7 — Receivables from Customers

As noted in Note 13, in May 2010 Anadarko Petroleum Corporation (“Anadarko”) sent a letter asserting that the initial attempted deepwater drilling moratorium in the U.S. Gulf of Mexico was an event of force majeure under the drilling contract for the Noble Amos Runner. In June 2010, Anadarko filed a declaratory judgment action in Federal District Court in Houston, Texas seeking to have the court declare that a force majeure condition had occurred and that the drilling contract was terminated by virtue of the initial proclaimed moratorium. We disagree that a force majeure event occurred and that Anadarko had the right to terminate the contract. In August 2010, we filed a counterclaim seeking damages from Anadarko for breach of contract. Anadarko has also attempted to offset revenue that we had billed for services performed prior to their termination of the contract. At September 30, 2011, we had accounts receivable of approximately $13 million related to this attempted offset. We do not believe Anadarko has a basis to offset these invoiced amounts. While we will continue to litigate the matter to full resolution, we can make no assurances as to the outcome of this dispute.

In June 2010, a subsidiary of Frontier entered into a charter contract with a subsidiary of BP PLC (“BP”) for the Seillean with a term of a minimum of 100 days. The unit went on hire on July 23, 2010. In October 2010, BP initiated an arbitration proceeding against us claiming the contract was void ab initio, or never existed, due to a fundamental breach and has made other claims and is demanding that we reimburse the amounts already paid to us under the charter. We believe BP owes us the amounts due under the charter. The charter contains a “hell or high water” provision requiring payment, and we believe we have satisfied our obligations under the charter. Outstanding receivables related to this charter totaled $35 million as of September 30, 2011. We believe that if BP were to be successful in claiming the contract void ab initio, we would have an indemnity claim against the former shareholders of Frontier. We have put the former owners of Frontier on notice of this potential claim. We can make no assurances as to the outcome of this dispute.

17

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

At September 30, 2011, we had accounts receivable of approximately $14 million related to the Noble Max Smith which are being disputed by our customer, Pemex Exploracion y Produccion (“Pemex”). The disputed amount relates to lost revenues due from Pemex for downtime that occurred when our rig was damaged after one of Pemex’s supply boats collided with our rig. While we believe we are entitled to the disputed amounts, we can make no assurances as to the outcome of this dispute.

Note 8 — Debt

Total debt consisted of the following at September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Wholly-owned debt instruments:
5.875% Senior Notes due 2013	$	299,939	$	299,911
7.375% Senior Notes due 2014		249,610		249,506
3.45% Senior Notes due 2015		350,000		350,000
3.05% Senior Notes due 2016		299,934		—
7.50% Senior Notes due 2019		201,695		201,695
4.90% Senior Notes due 2020		498,754		498,672
4.625% Senior Notes due 2021		399,469		—
6.20% Senior Notes due 2040		399,890		399,889
6.05% Senior Notes due 2041		397,575		—
Credit facilities		715,000		40,000
Consolidated joint venture debt instruments:
Joint venture credit facilities	$	—	$	691,052
Joint venture partner notes		—		35,972
Total Debt		3,811,866		2,766,697
Less: Current Maturities		—		(80,213	)
Long-term Debt	$	3,811,866	$	2,686,484

We have two separate revolving credit facilities in place which provide us with a total borrowing capacity of $1.2 billion. One credit facility, which has a capacity of $600 million, matures in 2013, and during the first quarter of 2011, we entered into an additional $600 million revolving credit facility which matures in 2015 (together referred to as the “Credit Facilities”). The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits our ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60. We were in compliance with all covenants as of September 30, 2011.

The Credit Facilities provide us with the ability to issue up to $300 million in letters of credit in the aggregate. While the issuance of letters of credit does not increase our borrowings outstanding under the Credit Facilities, it does reduce the amount available. At September 30, 2011, we had borrowings of $715 million outstanding and no letters of credit outstanding under the Credit Facilities.

In February 2011, we issued through our indirect wholly-owned subsidiary, Noble Holding International Limited (“NHIL”), $1.1 billion aggregate principal amount of senior notes in three separate tranches, comprising $300 million of 3.05% Senior Notes due 2016, $400 million of 4.625% Senior Notes due 2021, and $400 million of 6.05% Senior Notes due 2041. A portion of the net proceeds of approximately $1.09 billion, after expenses, was used to repay the outstanding balance on our revolving credit facility and to repay our portion of outstanding debt under the joint venture credit facilities discussed below.

18

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

In the first quarter of 2011, the joint venture credit facilities, which had a combined outstanding balance of $693 million, were repaid in full through contributions to the joint ventures from Noble and Shell. Shell contributed $361 million in equity to fund their portion of the repayment of joint venture credit facilities and related interest rate swaps, which were settled concurrent with the repayment and termination of the joint venture credit facilities.

In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes was 10%, payable semi-annually in arrears, and in kind, on June 30 and December 31 commencing in June 2011. The purpose of these notes was to provide additional liquidity to the joint ventures in connection with the shipyard construction of the Bully vessels.

In April 2011, the Bully joint venture partners entered into a subscription agreement, pursuant to which each partner was issued equity in each of the Bully joint ventures in exchange for the cancellation of all outstanding joint venture partner notes. The subscription agreement has the effect of converting all joint venture partner notes into equity of the respective joint venture. The total capital contributed as a result of these agreements was $146 million, which included $142 million in outstanding notes, plus accrued interest. Our portion of the capital contribution, totaling $73 million, was eliminated in consolidation.

Fair Value of Debt

Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The estimated fair value of our senior notes was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar remaining maturities. The following table presents the estimated fair value of our long-term debt as of September 30, 2011 and December 31, 2010.

	September 30, 2011				December 31, 2010
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Wholly-owned debt instruments
5.875% Senior Notes due 2013	$	299,939	$	323,731	$	299,911	$	324,281
7.375% Senior Notes due 2014		249,610		283,353		249,506		282,078
3.45% Senior Notes due 2015		350,000		365,503		350,000		357,292
3.05% Senior Notes due 2016		299,934		305,919		—		—
7.50% Senior Notes due 2019		201,695		250,238		201,695		242,464
4.90% Senior Notes due 2020		498,754		537,513		498,672		516,192
4.625% Senior Notes due 2021		399,469		420,987		—		—
6.20% Senior Notes due 2040		399,890		456,403		399,889		423,345
6.05% Senior Notes due 2041		397,575		447,951		—		—
Credit facilities		715,000		715,000		40,000		40,000
Consolidated joint venture debt instruments
Joint venture credit facilities		—		—		691,052		691,052
Joint venture partner notes		—		—		35,972		35,972

Note 9 — Income Taxes

At December 31, 2010, the reserves for uncertain tax positions totaled $145 million (net of related tax benefits of $8 million). At September 30, 2011, the reserves for uncertain tax positions totaled $122 million (net of related tax benefits of $8 million). If the September 30, 2011 reserves are not realized, the provision for income taxes would be reduced by $122 million.

It is possible that our existing liabilities related to our reserve for uncertain tax position amounts may increase or decrease in the next twelve months primarily from the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities for various uncertainties, such as the unresolved nature of various audits.

19

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Note 10 — Employee Benefit Plans

Pension costs include the following components:

	Three Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	1,141		$	2,152		$	1,045		$	1,912
Interest cost		1,433			2,143			1,224			1,957
Return on plan assets		(1,449	)		(2,768	)		(1,331	)		(2,392	)
Amortization of prior service cost		—			57			—			57
Amortization of transition obligation		19			—			17			—
Recognized net actuarial loss		123			844			181			705
Net pension expense	$	1,267		$	2,428		$	1,136		$	2,239

	Nine Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	3,387		$	6,456		$	3,211		$	5,736
Interest cost		4,256			6,428			3,694			5,871
Return on plan assets		(4,306	)		(8,304	)		(3,999	)		(7,176	)
Amortization of prior service cost		—			170			—			171
Amortization of transition obligation		56			—			53			—
Recognized net actuarial loss		366			2,531			537			2,115
Net pension expense	$	3,759		$	7,281		$	3,496		$	6,717

During the nine months ended September 30, 2011 and 2010, we made contributions to our pension plans totaling $7 million and $15 million, respectively. We expect the funding to our non-U.S. and U.S. plans in 2011, subject to applicable law, to be approximately $11 million.

We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (“Restoration Plan”). The Restoration Plan is a nonqualified, unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment income and, conversely, we benefit should phantom investment losses occur. At September 30, 2011 and December 31, 2010, our liability under the Restoration Plan totaled $5 million and $7 million, respectively. We have purchased investments that closely correlate to the investment elections made by participants in the Restoration Plan in order to mitigate the impact of the phantom investment income and losses on our financial statements. The value of these investments held for our benefit totaled $4 million and $7 million at September 30, 2011 and December 31, 2010, respectively.

Note 11 — Derivative Instruments and Hedging Activities

We periodically enter into derivative instruments to manage our exposure to fluctuations in interest rates and foreign currency exchange rates. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives. During the period, we maintained certain foreign currency forward contracts that did not qualify under the Financial Accounting Standards Board (“FASB”) standards for hedge accounting treatment and therefore, changes in fair values were recognized as either income or loss in our consolidated income statement.

20

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

For foreign currency forward contracts, hedge effectiveness is evaluated at inception based on the matching of critical terms between derivative contracts and the hedged item. For interest rate swaps, we evaluate all material terms between the swap and the underlying debt obligation, known in FASB standards as the “long-haul method.” Any change in fair value resulting from ineffectiveness is recognized immediately in earnings.

Cash Flow Hedges

Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. To limit the potential risk of currency fluctuations, we typically maintain short-term forward contracts settling monthly in their respective local currencies. The forward contract settlements in the remainder of 2011 represent approximately 43 percent of these forecasted local currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. Dollars, was approximately $71 million at September 30, 2011. Total unrealized losses related to these forward contracts were $6 million as of September 30, 2011 and were recorded as part of “Accumulated other comprehensive loss” (“AOCL”).

Our two joint ventures had maintained interest rate swaps which were classified as cash flow hedges. The purpose of these hedges was to satisfy bank covenants of the then outstanding credit facilities and to limit exposure to changes in interest rates. In February 2011, the outstanding balances of the joint venture credit facilities and the related interest rate swaps were settled and terminated. As a result of these transactions we recognized a gain of $1 million during the nine months ended September 30, 2011.

The balance of the net unrealized gain/(loss) related to our cash flow hedges included in AOCL and related activity is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net unrealized gain/(loss) at beginning of period	$	4,117		$	(2,517	)	$	1,970		$	417
Activity during period:
Settlement of foreign currency forward contracts during the period		(2,054	)		1,395			(1,604	)		(417	)
Settlement of interest rate swaps during the period		—			—			(366	)		—
Net unrealized gain/(loss) on outstanding foreign currency forward contracts		(7,600	)		3,367			(5,537	)		2,245
Net unrealized gain/(loss) on outstanding interest rate swaps		—			(7,586	)		—			(7,586	)
Net unrealized gain/(loss) at end of period	$	(5,537	)	$	(5,341	)	$	(5,537	)	$	(5,341	)

Fair Value Hedges

We entered into a firm commitment for the construction of the Noble Globetrotter I drillship. The drillship was constructed in two phases, with the second phase being installation and commissioning of the topside equipment. The contract for this second phase of construction was denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward contracts to purchase Euros. As of September 30, 2011, all amounts related to the forward contracts have settled. We accounted for the forward contracts as fair value hedges, and their fair market value was included in “Other current assets/liabilities” in the Consolidated Balance Sheets. No gain or loss was recognized in the income statement for the three and nine months ended September 30, 2011 or 2010.

21

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Foreign Currency Forward Contracts

One of our joint ventures maintained foreign currency forward contracts to help mitigate the risk of currency fluctuation of the Singapore Dollar for the construction of the Noble Bully II drillship. These contracts were not designated for hedge accounting treatment under FASB standards, and therefore, changes in fair values were recognized as either income or loss in our Consolidated Income Statement. These contracts are referred to as non-designated derivatives in the tables to follow, and all were settled during the first quarter of 2011. For the nine months ended September 30, 2011, we recognized a loss of $0.5 million related to these foreign currency forward contracts.

Financial Statement Presentation

The following tables, together with Note 12, summarize the financial statement presentation and fair value of our derivative positions as of September 30, 2011 and December 31, 2010:

		Estimated fair value
	Balance sheet	September 30,			December 31,
	classification	2011			2010
Asset derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current assets	$	—		$	2,015
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			—
Non-designated derivatives
Short-term foreign currency forward contracts	Other current assets		—			2,603
Liability derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current liabilities	$	(5,537	)	$	412
Short-term interest rate swaps	Other current liabilities		—			15,697
Long-term interest rate swaps	Other liabilities		—			10,893
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			3,306

To supplement the fair value disclosures in Note 12, the following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the three months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011		2010
Cash flow hedges
Foreign currency forward contracts	$	(7,600	)	$	4,762		$	2,054	$	—	$	—	$	—
Interest rate swaps		—			(7,586	)		—		—		—		(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	—	$	1,234

22

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

The following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the nine months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011			2010
Cash flow hedges
Foreign currency forward contracts	$	(5,537	)	$	1,828		$	1,604	$	—	$	—		$	—
Interest rate swaps		—			(7,586	)		366		—		—			(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	(546	)	$	1,234

During the nine months ended September 30, 2011, in connection with the settlement of our interest rate swaps, $1 million was reclassified from AOCL to gain on contract extinguishments.

For cash flow presentation purposes, cash outflows of $29 million were recognized in the financing activities section related to the settlement of interest rate swaps. All other amounts were recognized as changes in operating activities.

Note 12 — Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:

	September 30, 2011										December 31, 2010
				Estimated Fair Value Measurements
				Quoted		Significant
				Prices in		Other			Significant
				Active		Observable			Unobservable
	Carrying			Markets		Inputs			Inputs		Carrying		Estimated
	Amount			(Level 1)		(Level 2)			(Level 3)		Amount		Fair Value
Assets —
Marketable securities	$	4,294		$	4,294	$	—		$	—	$	6,854	$	6,854
Foreign currency forward contracts		—			—		—			—		4,618		4,618
Firm commitment		—			—		—			—		3,306		3,306
Liabilities —
Interest rate swaps	$	—		$	—	$	—		$	—	$	26,590	$	26,590
Foreign currency forward contracts		(5,537	)		—		(5,537	)		—		3,718		3,718

The derivative instruments have been valued using actively quoted prices and quotes obtained from the counterparties to the derivative instruments. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in the accompanying Consolidated Balance Sheets approximate fair value.

23

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

Note 13 — Commitments and Contingencies

As noted in Note 7, in May 2010 Anadarko sent a letter asserting that the initial attempted deepwater drilling moratorium in the U.S. Gulf of Mexico was an event of force majeure under the drilling contract for the Noble Amos Runner. In June 2010, Anadarko filed a declaratory judgment action in Federal District Court in Houston, Texas seeking to have the court declare that a force majeure condition had occurred and that the drilling contract was terminated by virtue of the initial proclaimed moratorium. We disagree that a force majeure event occurred and that Anadarko had the right to terminate the contract. In August 2010, we filed a counterclaim seeking damages from Anadarko for breach of contract. Anadarko has also attempted to offset approximately $13 million that we had billed for services performed prior to their termination of the contract. We do not believe Anadarko has a basis to offset these invoiced amounts. As a result of the uncertainties noted above, we have not recognized any revenue under the portion of this contract relating to the period after termination and the matter could have a material positive effect on our results of operations or cash flows for the period in which the matter is resolved should the court ultimately rule in our favor.

The Noble Homer Ferrington is under contract with a subsidiary of ExxonMobil Corporation (“ExxonMobil”), who entered into an assignment agreement with BP for a two well farm-out of the rig in Libya after successfully drilling two wells with the rig for ExxonMobil. In August 2010, BP attempted to terminate the assignment agreement claiming that the rig was not in the required condition. ExxonMobil has informed us that we must look to BP for payment of the dayrate during the assignment period. In August 2010, we initiated arbitration proceedings under the drilling contract against both BP and ExxonMobil. We do not believe BP had the right to terminate the assignment agreement and believe the rig continued to be fully ready to operate under the drilling contract. The rig has been operating under farm-out arrangements since March 2011. We believe we are owed dayrate by either or both of these clients. The operating dayrate was approximately $538,000 per day for the work in Libya. We are proceeding with the arbitration process and intend to vigorously pursue these claims. As a result of the uncertainties noted above, we have not recognized any revenue during the assignment period and the matter could have a material positive effect on our results of operations or cash flows in the period the matter is resolved should the arbitration panel ultimately rule in our favor.

In August 2007, we entered into a drilling contract with Marathon Oil Company (“Marathon”) for the Noble Jim Day to operate in the U.S. Gulf of Mexico. On January 1, 2011, Marathon provided notice that it was terminating the contract. Marathon’s stated reason for the termination was that the rig had not been accepted by Marathon by December 31, 2010, and Marathon also maintained that a force majeure condition existed under the contract. The contract contained a provision allowing Marathon to terminate if the rig had not commenced operations by December 31, 2010. We believe the rig was ready to commence operations and should have been accepted by Marathon. The contract term was for four years and represented approximately $752 million in contract backlog at the time of termination. No revenue has been recognized under this contract. In March 2011, we filed suit in Texas State District Court against Marathon seeking damages for its actions, and the suit is proceeding. We cannot provide assurance as to the outcome of this lawsuit.

During the fourth quarter of 2007, our Nigerian subsidiary received letters from the Nigerian Maritime Administration and Safety Agency (“NIMASA”) seeking to collect a two percent surcharge on contract amounts under contracts performed by “vessels,” within the meaning of Nigeria’s cabotage laws, engaged in the Nigerian coastal shipping trade. Although we do not believe that these laws apply to our ownership of drilling units, NIMASA is seeking to apply a provision of the Nigerian cabotage laws (which became effective on May 1, 2004) to our offshore drilling units by considering these units to be “vessels” within the meaning of those laws and therefore subject to the surcharge, which is imposed only upon “vessels.” Our offshore drilling units are not engaged in the Nigerian coastal shipping trade and are not in our view “vessels” within the meaning of Nigeria’s cabotage laws. In January 2008, we filed an originating summons against NIMASA and the Minister of Transportation in the Federal High Court of Lagos, Nigeria seeking, among other things, a declaration that our drilling operations do not constitute “coastal trade” or “cabotage” within the meaning of Nigeria’s cabotage laws and that our offshore drilling units are not “vessels” within the meaning of those laws. In February 2009, NIMASA filed suit against us in the Federal High Court of Nigeria seeking collection of the cabotage surcharge. In August 2009, the court issued a favorable ruling in response to our originating summons stating that drilling operations do not fall within the cabotage laws and that drilling rigs are not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or drilling operations. NIMASA has appealed the court’s ruling, although the court dismissed NIMASA’s lawsuit filed against us in February 2009. We intend to take all further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling units. The outcome of any such legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling units constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of the Nigerian cabotage laws, which could adversely affect our operations in Nigerian waters and require us to incur additional costs of compliance.

24

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

NIMASA had also informed the Nigerian Content Division of its position that we are not in compliance with the cabotage laws. The Nigerian Content Division makes determinations of companies’ compliance with applicable local content regulations for purposes of government contracting, including contracting for services in connection with oil and gas concessions where the Nigerian national oil company is a partner. The Nigerian Content Division had originally barred us from participating in new tenders as a result of NIMASA’s allegations, although the Division reversed its actions based on the favorable Federal High Court ruling. However, no assurance can be given with respect to our ability to bid for future work in Nigeria until our dispute with NIMASA is resolved. Further, we continue to evaluate the local content regulations in Nigeria, which could also affect our ability to operate there and our profitability earned from Nigeria.

In November 2010, we concluded our contract for the Noble Duchess in Nigeria. Following the contract, we commenced the exportation process for the rig. The Nigerian Customs Service delayed departure of the rig while we discussed certain spare items that they claimed were unaccounted for and for which duty would be due. We resolved this matter for an immaterial amount and exported the rig during the third quarter of 2011.

We are from time to time a party to various lawsuits that are incidental to our operations in which the claimants seek an unspecified amount of monetary damages for personal injury, including injuries purportedly resulting from exposure to asbestos on drilling rigs and associated facilities. At September 30, 2011, there were approximately 22 asbestos related lawsuits in which we are one of many defendants. These lawsuits have been filed in the United States in the states of Louisiana, Mississippi and Texas. We intend to vigorously defend against the litigation. We do not believe the ultimate resolution of these matters will have a material adverse effect on our financial position, results of operations or cash flows.

We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, including certain disputes with customers over receivables discussed in Note 7, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.

We operate in a number of countries throughout the world and our income tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. Our 2008 tax return is currently under audit by the U.S. Internal Revenue Service. In addition, a U.S. subsidiary of Frontier is also under audit for its 2007 and 2008 tax returns. Furthermore, we are currently contesting several non-U.S. tax assessments and may contest future assessments when we believe the assessments are in error. We cannot predict or provide assurance as to the ultimate outcome of the existing or future assessments. We believe the ultimate resolution of the outstanding assessments, for which we have not made any accrual, will not have a material adverse effect on our consolidated financial statements. We recognize uncertain tax positions that we believe have a greater than 50 percent likelihood of being sustained.

Certain of our non-U.S. income tax returns have been examined for the 2002 through 2008 periods and audit claims have been assessed for approximately $286 million (including interest and penalties), primarily in Mexico. We do not believe we owe these amounts and are defending our position. However, we expect increased audit activity in Mexico and anticipate the tax authorities will issue additional assessments and continue to pursue legal actions for all audit claims. We believe additional audit claims in the range of $9 to $10 million attributable to other business tax returns may be assessed against us. We have contested, or intend to contest, the audit findings, including through litigation if necessary, and we do not believe that there is greater than 50 percent likelihood that additional taxes will be incurred. Accordingly, no accrual has been made for such amounts.

25

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

We maintain certain insurance coverage against specified marine perils, including liability for physical damage to our drilling rigs, and loss of hire on certain of our rigs. The damage caused in 2005 and 2008 by Hurricanes Katrina, Rita and Ike negatively impacted the energy insurance market, resulting in more restrictive and expensive coverage for U.S. named windstorm perils. Accordingly, effective March 2009, we elected to self-insure this exposure to our units in the U.S. portion of the Gulf of Mexico. Our rigs located in the Mexican portion of the Gulf of Mexico remain covered by commercial insurance for windstorm damage. In addition, we maintain physical damage deductibles of $25 million per occurrence for rigs located in the U.S., Mexico, Brazil, Southeast Asia, the North Sea, New Zealand and Australia and $15 million per occurrence for rigs operating in West Africa, the Middle East, India, and the Mediterranean Sea. The loss of hire coverage applies only to our rigs operating under contract with a dayrate equal to or greater than $200,000 a day and is subject to a 45-day waiting period for each unit and each occurrence.

Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property on board our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows. Additionally, there can be no assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks.

In October 2011, we were assessed a fine by the Brazilian government in the amount of R$238,000 (approximately $135,000) in connection with the inadvertent discharge of approximately 200 barrels of drilling fluid from one of our vessels offshore Brazil in November 2010. We plan on appealing this judgment to the full extent permissible by law.

We carry protection and indemnity insurance covering marine third party liability exposures, which also includes coverage for employer’s liability resulting from personal injury to our offshore drilling crews. Our protection and indemnity policy currently has a standard deductible of $10 million per occurrence, with maximum liability coverage of $750 million.

In connection with our capital expenditure program, we had outstanding commitments, including shipyard and purchase commitments of approximately $3.4 billion at September 30, 2011.

We have entered into agreements with certain of our executive officers, as well as certain other employees. These agreements become effective upon a change of control of Noble-Swiss (within the meaning set forth in the agreements) or a termination of employment in connection with or in anticipation of a change of control, and remain effective for three years thereafter. These agreements provide for compensation and certain other benefits under such circumstances.

Internal Investigation

In 2007, we began, and voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of an internal investigation of the legality under the United States Foreign Corrupt Practices Act (“FCPA”) and local laws of certain reimbursement payments made by our Nigerian affiliate to our customs agents in Nigeria. In 2010, we finalized settlements of this matter with each of the SEC and the DOJ. Pursuant to these settlements, we agreed to pay fines and penalties to the DOJ and the SEC and to certain undertakings, including refraining from violating the FCPA and other anti-corruption laws, self-reporting any violations of the FCPA or such laws to the DOJ and reporting to the DOJ on an annual basis our progress on anti-corruption compliance matters. Our ability to comply with the terms of the settlements is dependent on the success of our ongoing compliance program, including our ability to continue to manage our agents and supervise, train and retain competent employees, and the efforts of our employees to comply with applicable law and our code of business conduct and ethics.

26

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

In January 2011, the Nigerian Economic and Financial Crimes Commission and the Nigerian Attorney General Office initiated an investigation into these same activities. A subsidiary of Noble-Swiss resolved this matter through the execution of a non-prosecution agreement dated January 28, 2011. Pursuant to this agreement, the subsidiary paid $2.5 million to resolve all charges and claims of the Nigerian government.

Any similar investigations or charges and any additional sanctions we may incur as a result of any such investigation could damage our reputation and result in substantial fines, sanctions, civil and/or criminal penalties and curtailment of operations in certain jurisdictions and might adversely affect our business, results of operations or financial condition. Further, resolving any such investigation could be expensive and consume significant time and attention of our senior management.

As of September 30, 2011, all of our rigs operating in Nigeria were operating under temporary import permits. To date, we have been successful in obtaining new, or extending existing, temporary import permits. However, there can be no assurance that we will be able to obtain new permits or further extensions of permits necessary to continue the operation of our rigs in Nigeria. If we cannot obtain a new permit or an extension necessary to continue operations of any rig, we may need to cease operations under the drilling contract for such rig and relocate such rig from Nigerian waters. We cannot predict what impact these events may have on any such contract or our business in Nigeria, and we could face additional fines and sanctions in Nigeria. Furthermore, we cannot predict what changes, if any, relating to temporary import permit policies and procedures may be established or implemented in Nigeria in the future, or how any such changes may impact our business there.

Note 14 — Segment and Related Information

We report our contract drilling operations as a single reportable segment: Contract Drilling Services. The consolidation of our contract drilling operations into one reportable segment is attributable to how we manage our business, and the fact that all of our drilling fleet is dependent upon the worldwide oil and gas industry. The mobile offshore drilling units comprising our offshore rig fleet operate in a single, global market for contract drilling services and are often redeployed globally in response to changing demands of our customers, which consist largely of major non-U.S. and government owned/controlled oil and gas companies throughout the world. Our Contract Drilling Services segment currently conducts contract drilling operations principally in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian Pacific.

We evaluate the performance of our operating segment primarily based on operating revenues and net income. Summarized financial information of our reportable segments for the three and nine months ended September 30, 2011 and 2010 is shown in the following table. The “Other” column includes results of labor contract drilling services in Canada and Alaska, as well as corporate related items.

	Three Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	719,546		$	18,356		$	737,902		$	604,042		$	8,576		$	612,618
Depreciation and amortization		162,837			3,376			166,213			140,199			3,083			143,282
Segment operating income/ (loss)		159,588			3,994			163,582			109,083			(726	)		108,357
Interest expense, net of amount capitalized		(122	)		(11,408	)		(11,530	)		(125	)		(4,019	)		(4,144	)
Income tax (provision)/ benefit		(18,380	)		766			(17,614	)		(20,876	)		589			(20,287	)
Segment profit/ (loss)		141,199			(5,882	)		135,317			89,001			(2,981	)		86,020
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		555,434			3,771			559,205			352,347			2,345			354,692

27

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Nine Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	1,897,045		$	47,742		$	1,944,787		$	2,137,304		$	26,087		$	2,163,391
Depreciation and amortization		477,568			9,886			487,454			376,754			8,612			385,366
Segment operating income/ (loss)		321,613			7,278			328,891			801,966			(2,101	)		799,865
Interest expense, net of amount capitalized		(1,890	)		(43,510	)		(45,400	)		(418	)		(4,701	)		(5,119	)
Income tax (provision)/ benefit		(48,661	)		6,180			(42,481	)		(128,012	)		1,211			(126,801	)
Segment profit/ (loss)		273,018			(29,123	)		243,895			680,302			(5,631	)		674,671
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		1,979,145			8,843			1,987,988			869,435			16,658			886,093

Note 15 — Accounting Pronouncements

In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple-deliverable arrangements. The guidance establishes a selling-price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to multiple-deliverable arrangements and to align the accounting with the underlying economics of the multiple-deliverable transaction. This guidance is effective for fiscal years beginning on or after June 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in the roll-forward activity in Level 3 fair value measurements were deferred until fiscal years beginning after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In December 2010, the FASB issued guidance that requires a public entity to disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable prior annual reporting period. The guidance is effective for annual reporting periods beginning on or after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In May 2011, the FASB issued guidance that modified the wording used to describe many of the requirements in accounting literature for measuring fair value and for disclosing information about fair value measurements. The goal of the amendment is to create consistency between the United States and international accounting standards. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance should not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

28

NOBLE CORPORATION (NOBLE-SWISS) AND SUBSIDIARIES
NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

In June 2011, the FASB issued guidance that allows an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment no longer allows an entity to show changes to other comprehensive income solely through the statement of equity. For publicly traded entities, the guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance will not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

Note 16 — Net Change in Other Assets and Liabilities

The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:

	Noble-Swiss						Noble-Cayman
	Nine months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Accounts receivable	$	(213,747	)	$	250,917		$	(213,747	)	$	250,924
Other current assets		(23,900	)		(22,962	)		(20,578	)		(21,001	)
Other assets		(21,755	)		(6,600	)		(24,233	)		(6,705	)
Accounts payable		(23,744	)		(12,635	)		(23,654	)		(20,773	)
Other current liabilities		21,281			(9,105	)		13,655			(27,543	)
Other liabilities		33,566			28,258			33,540			28,482
	$	(228,299	)	$	227,873		$	(235,017	)	$	203,384

Note 17 — Guarantees of Registered Securities

Noble-Cayman and Noble Holding (U.S.) Corporation (“NHC”), a wholly-owned subsidiary of Noble-Cayman, are full and unconditional guarantors of NDC’s 7.50% Senior Notes due 2019 which had an outstanding principal balance at September 30, 2011 of $202 million. NDC is a direct, wholly-owned subsidiary of NHC. Noble Drilling Holding LLC (“NDH”), a wholly-owned subsidiary of Noble-Cayman, is also a co-obligor on (and effectively a guarantor of) the 7.50% Senior Notes. Noble Drilling Services 6 LLC (“NDS6”), also a wholly-owned subsidiary of Noble-Cayman, is a co-issuer of the 7.50% Senior Notes.

NDC and NHIL are full and unconditional guarantors of Noble-Cayman’s 5.875% Senior Notes due 2013, which had an outstanding principal balance of $300 million at September 30, 2011. The indenture governing the Senior Notes due 2013 provides that each guarantee may be released in connection with certain events, including upon a merger, consolidation or transfer of all of the assets of Noble Cayman or the guarantor with or to another person in compliance with the indenture (provided the acquiror assumes the guarantee), upon a liquidation of the guarantor in compliance with the indenture (provided any acquiror assumes the guarantee), or upon the guarantor’s ceasing to be a wholly-owned subsidiary of Noble-Cayman.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 7.375% Senior Notes due 2014, which had an outstanding principal balance of $250 million at September 30, 2011.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 3.45% Senior Notes due 2015, 4.90% Senior Notes due 2020 and 6.20% Senior Notes due 2040. The aggregate principal balance of these three tranches of senior notes at September 30, 2011 was $1.25 billion.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 3.05% Senior Notes due 2016, 4.625% Senior Notes due 2021 and 6.05% Senior Notes due 2041. The aggregate principal balance of these three tranches of senior notes at September 30, 2011 was $1.1 billion.

The following consolidating financial statements of Noble-Cayman, NHC and NDH combined, NDC, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

29

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2011
(in thousands)

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	—	$	292		$	—		$	—	$	—	$	191,713		$	—		$	192,005
Accounts receivable		—		10,757			3,472			—		—		586,932			—			601,161
Prepaid expenses		—		400			10			—		—		57,121			—			57,531
Short-term notes receivable from affiliates		—		119,476			—			—		—		110,000			(229,476	)		—
Accounts receivable from affiliates		1,182,035		92,282			847,880			150,144		15,737		5,705,679			(7,993,757	)		—
Other current assets		—		6,247			240			—		—		133,538			—			140,025
Total current assets		1,182,035		229,454			851,602			150,144		15,737		6,784,983			(8,223,233	)		990,722
Property and equipment
Drilling equipment, facilities and other		—		2,374,299			71,567			—		—		11,940,555			—			14,386,421
Accumulated depreciation		—		(207,832	)		(52,334	)		—		—		(2,734,320	)		—			(2,994,486	)
Total property and equipment, net		—		2,166,467			19,233			—		—		9,206,235			—			11,391,935
Notes receivable from affiliates		3,487,062		675,000			—			2,336,527		572,107		2,662,901			(9,733,597	)		—
Investments in affiliates		7,185,905		9,133,639			3,510,041			6,370,565		1,899,939		—			(28,100,089	)		—
Other assets		3,660		15,933			2,067			19,087		910		487,484			—			529,141
Total assets	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	60,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(229,476	)	$	—
Accounts payable and accrued liabilities		6,298		24,036			8,116			15,201		630		580,143			—			634,424
Accounts payable to affiliates		1,802,030		3,806,799			26,056			99,896		30,916		2,228,060			(7,993,757	)		—
Total current liabilities		1,868,328		3,880,835			34,172			115,097		31,546		2,927,679			(8,223,233	)		634,424
Long-term debt		1,014,939		—			—			2,595,232		201,695		—			—			3,811,866
Notes payable to affiliates		1,652,000		1,147,500			85,000			975,000		811,000		5,063,097			(9,733,597	)		—
Other liabilities		19,929		24,291			30,177			—		—		443,751			—			518,148
Total liabilities		4,555,196		5,052,626			149,349			3,685,329		1,044,241		8,434,527			(17,956,830	)		4,964,438
Commitments and contingencies
Equity		7,303,466		7,167,867			4,233,594			5,190,994		1,444,452		10,707,076			(28,100,089	)		7,947,360
Total liabilities and equity	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798

30

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2010
(in thousands)

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	42	$	146		$	—		$	—	$	—	$	333,211		$	—		$	333,399
Accounts receivable		—		6,984			1,795			—		—		378,635			—			387,414
Prepaid expenses		—		310			—			—		—		32,922			—			33,232
Short-term notes receivable from affiliates		—		119,476			—			—		—		75,000			(194,476	)		—
Accounts receivable from affiliates		614,264		73,001			751,623			219,215		11,374		3,801,852			(5,471,329	)		—
Other current assets		—		16,735			240			—		—		133,912			—			150,887
Total current assets		614,306		216,652			753,658			219,215		11,374		4,755,532			(5,665,805	)		904,932
Property and equipment
Drilling equipment, facilities and other		—		1,254,482			70,945			—		—		11,289,547			—			12,614,974
Accumulated depreciation		—		(153,638	)		(50,250	)		—		—		(2,391,066	)		—			(2,594,954	)
Total property and equipment, net		—		1,100,844			20,695			—		—		8,898,481			—			10,020,020
Notes receivable from affiliates		3,507,062		675,000			—			1,239,600		479,107		2,492,900			(8,393,669	)		—
Investments in affiliates		6,835,466		9,150,129			3,561,451			5,618,248		1,879,831		—			(27,045,125	)		—
Other assets		1,872		7,700			2,451			11,336		1,001		318,232			—			342,592
Total assets	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	25,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(194,476	)	$	—
Current maturities of long-term debt		—		—			—			—		—		80,213			—			80,213
Accounts payable and accrued liabilities		1,473		19,218			8,779			31,973		4,413		647,488			—			713,344
Accounts payable to affiliates		1,601,869		2,708,598			30,095			64,192		7,134		1,059,441			(5,471,329	)		—
Total current liabilities		1,628,342		2,777,816			38,874			96,165		11,547		1,906,618			(5,665,805	)		793,557
Long-term debt		339,911		—			—			1,498,066		201,695		646,812			—			2,686,484
Notes payable to affiliates		1,834,500		1,092,000			120,000			550,000		811,000		3,986,169			(8,393,669	)		—
Other liabilities		19,929		48,595			25,485			—		—		432,839			—			526,848
Total liabilities		3,822,682		3,918,411			184,359			2,144,231		1,024,242		6,972,438			(14,059,474	)		4,006,889
Commitments and contingencies
Equity		7,136,024		7,231,914			4,153,896			4,944,168		1,347,071		9,492,707			(27,045,125	)		7,260,655
Total liabilities and equity	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544

31

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	38,955		$	5,105		$	—		$	—		$	680,617		$	(19,785	)	$	704,892
Reimbursables		—			691			—			—			—			16,747			—			17,438
Labor contract drilling services		—			4			—			—			—			15,560			—			15,564
Other		—			—			—			—			—			8			—			8
Total operating revenues		—			39,650			5,105			—			—			712,932			(19,785	)		737,902
Operating costs and expenses
Contract drilling services		1,759			10,485			1,883			9,819			—			345,465			(19,785	)		349,626
Reimbursables		—			420			—			—			—			13,551			—			13,971
Labor contract drilling services		—			—			—			—			—			8,053			—			8,053
Depreciation and amortization		—			13,138			937			—			—			151,644			—			165,719
Selling, general and administrative		2,094			1,488			—			9,253			—			4,802			—			17,637
Gain on contract extinguishments, net		—			—			—			—			—			—			—			—
Total operating costs and expenses		3,853			25,531			2,820			19,072			—			523,515			(19,785	)		555,006
Operating income (loss)		(3,853	)		14,119			2,285			(19,072	)		—			189,417			—			182,896
Other income (expense)
Equity earnings in affiliates, net of tax		174,673			226,079			45,818			172,153			(20,624	)		—			(598,099	)		—
Interest expense, net of amounts capitalized		(16,721	)		(15,612	)		(1,285	)		(21,641	)		(7,106	)		(267	)		51,102			(11,530	)
Interest income and other, net		1,615			6,906			(40	)		15,813			2,277			26,415			(51,102	)		1,884
Income before income taxes		155,714			231,492			46,778			147,253			(25,453	)		215,565			(598,099	)		173,250
Income tax provision		—			487			—			—			—			(17,785	)		—			(17,298	)
Net Income		155,714			231,979			46,778			147,253			(25,453	)		197,780			(598,099	)		155,952
Net loss attributable to noncontrolling interests		—			—			—			—			—			(238	)		—			(238	)
Net income attributable to Noble Corporation	$	155,714		$	231,979		$	46,778		$	147,253		$	(25,453	)	$	197,542		$	(598,099	)	$	155,714

32

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	100,009		$	14,800		$	—		$	—		$	1,770,356		$	(48,118	)	$	1,837,047
Reimbursables		—			3,381			12			—			—			60,458			—			63,851
Labor contract drilling services		—			4			—			—			—			43,119			—			43,123
Other		—			—			—			—			—			766			—			766
Total operating revenues		—			103,394			14,812			—			—			1,874,699			(48,118	)		1,944,787
Operating costs and expenses
Contract drilling services		4,818			31,554			5,681			26,625			—			960,102			(48,118	)		980,662
Reimbursables		—			3,331			—			—			—			46,466			—			49,797
Labor contract drilling services		—			—			—			—			—			25,326			—			25,326
Depreciation and amortization		—			36,330			2,781			—			—			446,899			—			486,010
Selling, general and administrative		5,397			4,206			—			24,756			1			14,450			—			48,810
Gain on contract extinguishments, net					—			—			—			—			(21,202	)		—			(21,202	)
Total operating costs and expenses		10,215			75,421			8,462			51,381			1			1,472,041			(48,118	)		1,569,403
Operating income (loss)		(10,215	)		27,973			6,350			(51,381	)		(1	)		402,658			—			375,384
Other income (expense)
Equity earnings in affiliates, net of tax		350,439			328,452			80,795			344,524			86,932			—			(1,191,142	)		—
Interest expense, net of amounts capitalized		(52,985	)		(45,527	)		(4,824	)		(67,667	)		(22,048	)		(3,284	)		150,935			(45,400	)
Interest income and other, net		4,953			19,376			8			38,557			6,321			85,698			(150,935	)		3,978
Income before income taxes		292,192			330,274			82,329			264,033			71,204			485,072			(1,191,142	)		333,962
Income tax provision		—			6,287			—			—			—			(47,767	)		—			(41,480	)
Net Income		292,192			336,561			82,329			264,033			71,204			437,305			(1,191,142	)		292,482
Net loss attributable to noncontrolling interests		—			—			—			—			—			(290	)		—			(290	)
Net income attributable to Noble Corporation	$	292,192		$	336,561		$	82,329		$	264,033		$	71,204		$	437,015		$	(1,191,142	)	$	292,192

33

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	23,724		$	5,363		$	—		$	—		$	565,132		$	(9,300	)	$	584,919
Reimbursables		—			388			—			—			—			18,789			—			19,177
Labor contract drilling services		—			—			—			—			—			7,887			—			7,887
Other		—			(107	)		—			—			—			742			—			635
Total operating revenues		—			24,005			5,363			—			—			592,550			(9,300	)		612,618
Operating costs and expenses
Contract drilling services		18,924			8,475			1,657			—			—			296,031			(9,300	)		315,787
Reimbursables		—			127			—			—			—			14,224			—			14,351
Labor contract drilling services		—			—			—			—			—			5,302			—			5,302
Depreciation and amortization		—			9,494			924			—			—			132,641			—			143,059
Selling, general and administrative		—			605			94			(63	)		—			16,079			—			16,715
Total operating costs and expenses		18,924			18,701			2,675			(63	)		—			464,277			(9,300	)		495,214
Operating income (loss)		(18,924	)		5,304			2,688			63			—			128,273			—			117,404
Other income (expense)
Equity earnings in affiliates, net of tax		124,218			155,504			38,484			136,039			35,842			—			(490,087	)		—
Interest expense, net of amounts capitalized		(12,251	)		(14,845	)		(1,859	)		(12,645	)		(1,424	)		(2,668	)		41,545			(4,147	)
Interest income and other, net		1,556			555			—			8,419			2,221			30,004			(41,545	)		1,210
Income before income taxes		94,599			146,518			39,313			131,876			36,639			155,609			(490,087	)		114,467
Income tax provision		—			(18,445	)		—			—			—			(956	)					(19,401	)
Net Income		94,599			128,073			39,313			131,876			36,639			154,653			(490,087	)		95,066
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	94,599		$	128,073		$	39,313		$	131,876		$	36,639		$	154,186		$	(490,087	)	$	94,599

34

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	72,313		$	12,847		$	—		$	—		$	2,026,515		$	(30,600	)	$	2,081,075
Reimbursables		—			978			61			—			—			56,124			—			57,163
Labor contract drilling services		—			—			—			—			—			23,704			—			23,704
Other		—			5			—			—			—			1,444			—			1,449
Total operating revenues		—			73,296			12,908			—			—			2,107,787			(30,600	)		2,163,391
Operating costs and expenses
Contract drilling services		18,931			27,082			4,793			—			—			819,446			(30,600	)		839,652
Reimbursables		—			1,226			61			—			—			43,172			—			44,459
Labor contract drilling services		—			—			—			—			—			16,570			—			16,570
Depreciation and amortization		—			27,321			2,536			—			—			354,918			—			384,775
Selling, general and administrative		—			51,241			315			56			—			(3,475	)		—			48,137
Total operating costs and expenses		18,931			106,870			7,705			56			—			1,230,631			(30,600	)		1,333,593
Operating income (loss)		(18,931	)		(33,574	)		5,203			(56	)		—			877,156			—			829,798
Other income (expense)
Equity earnings in affiliates, net of tax		732,956			497,191			47,602			768,130			336,350			—			(2,382,229	)		—
Interest expense, net of amounts capitalized		(12,838	)		(50,179	)		(5,516	)		(32,010	)		(1,424	)		(8,852	)		105,697			(5,122	)
Interest income and other, net		5,002			23,312			—			8,419			8,373			66,911			(105,697	)		6,320
Income before income taxes		706,189			436,750			47,289			744,483			343,299			935,215			(2,382,229	)		830,996
Income tax provision		—			(27,537	)		—			—			—			(96,803	)		—			(124,340	)
Net Income		706,189			409,213			47,289			744,483			343,299			838,412			(2,382,229	)		706,656
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	706,189		$	409,213		$	47,289		$	744,483		$	343,299		$	837,945		$	(2,382,229	)	$	706,189

35

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(40,060	)	$	23,345		$	7,041		$	(105,014	)	$	(19,420	)	$	636,982		$	—		$	502,874
Cash flows from investing activities
New construction and capital expenditures		—			(1,124,826	)		—			—			—			(906,990	)		—			(2,031,816	)
Notes receivable from affiliates		20,000			—			—			(1,096,927	)		—			200,000			876,927			—
Refund from contract extinguishments		—			—			—			—			—			18,642			—			18,642
Net cash from investing activities		20,000			(1,124,826	)		—			(1,096,927	)		—			(688,348	)		876,927			(2,013,174	)
Cash flows from financing activities
Increase in bank credit facilities, net		675,000			—			—			—			—			—			—			675,000
Proceeds from issuance of senior notes, net		—			—			—			1,087,833			—			—			—			1,087,833
Contributions from joint venture partners		—			—			—			—			—			481,000			—			481,000
Payments of joint venture debt		—			—			—			—			—			(693,494	)		—			(693,494	)
Settlement of interest rate swaps		—			—			—			—			—			(29,032	)		—			(29,032	)
Financing cost on credit facilities		(2,835	)		—			—			—			—			—			—			(2,835	)
Distributions to parent		(149,566	)		—			—			—			—			—			—			(149,566	)
Advances (to) from affiliates		(355,081	)		1,119,127			27,959			114,108			19,420			(925,533	)		—			—
Notes payable to affiliates		(147,500	)		(17,500	)		(35,000	)		—			—			1,076,927			(876,927	)		—
Net cash from financing activities		20,018			1,101,627			(7,041	)		1,201,941			19,420			(90,132	)		(876,927	)		1,368,906
Net change in cash and cash equivalents		(42	)		146			—			—			—			(141,498	)		—			(141,394	)
Cash and cash equivalents, beginning of period		42			146			—			—			—			333,211			—			333,399
Cash and cash equivalents, end of period	$	—		$	292		$	—		$	—		$	—		$	191,713		$	—		$	192,005

36

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(6,194	)	$	(57,507	)	$	(3,907	)	$	(26,975	)	$	3,258		$	1,372,073		$	—		$	1,280,748
Cash flows from investing activities
New construction and capital expenditures		—			(381,928	)		—			—			—			(499,482	)		—			(881,410	)
Notes receivable from affiliates		—			—			—			(1,239,600	)		—			(490,000	)		1,729,600			—
Acquisition of FDR Holdings, Ltd., net of cash acquired		(1,629,644	)		—			—			—			—			—			—			(1,629,644	)
Net cash from investing activities		(1,629,644	)		(381,928	)		—			(1,239,600	)		—			(989,482	)		1,729,600			(2,511,054	)
Cash flows from financing activities
Proceeds from issuance of senior notes, net		—			—			—			1,238,074			—			—			—			1,238,074
Contributions from joint venture partners		—			—			—			—			—			35,000			—			35,000
Settlement of interest rate swaps		—			—			—			—			—			(2,041	)		—			(2,041	)
Distributions to parent		(422,537	)																				(422,537	)
Advances (to) from affiliates		328,813			439,401			3,907			28,501			(3,258	)		(797,364	)		—			—
Notes payable to affiliates		1,729,600			—			—			—			—			—			(1,729,600	)		—
Net cash from financing activities		1,635,876			439,401			3,907			1,266,575			(3,258	)		(764,405	)		(1,729,600	)		848,496
Net change in cash and cash equivalents		38			(34	)		—			—			—			(381,814	)		—			(381,810	)
Cash and cash equivalents, beginning of period		3			268			—			—			—			725,954						726,225
Cash and cash equivalents, end of period	$	41		$	234		$	—		$	—		$	—		$	344,140		$	—		$	344,415

37

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is intended to assist you in understanding our financial position at September 30, 2011, and our results of operations for the three and nine months ended September 30, 2011 and 2010. The following discussion should be read in conjunction with the consolidated financial statements and related notes contained in this Quarterly Report on Form 10-Q and the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2010 filed by Noble Corporation, a Swiss corporation (“Noble-Swiss”), and Noble Corporation, a Cayman Islands company (“Noble-Cayman”).

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report regarding the Frontier transaction and integration, contract backlog, fleet and benefits, our financial position, business strategy, backlog, completion and acceptance of our newbuild rigs, contract commitments, dayrates, contract commencements, extension or renewals, contract tenders, the outcome of any dispute, litigation or investigation, plans and objectives of management for future operations, foreign currency requirements, results of joint ventures, indemnity and other contract claims, construction of rigs, industry conditions including the effect of disruptions of drilling in the U.S. Gulf of Mexico, access to financing, impact of competition, taxes and tax rates, advantages of our worldwide internal restructuring, indebtedness covenant compliance, and timing for compliance with any new regulations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These forward-looking statements speak only as of the date of this report on Form 10-Q and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law. We have identified factors including but not limited to operating hazards and delays, risks associated with operations outside the U.S., actions by regulatory authorities, customers, joint venture partners, contractors, lenders and other third parties, legislation and regulations affecting drilling operations, costs and difficulties relating to the integration of businesses, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather conditions and the future price of oil and gas that could cause actual plans or results to differ materially from those included in any forward-looking statements. These factors include those referenced or described in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2010, our Quarterly Reports on Form 10-Q and in our other filings with the U.S. Securities and Exchange Commission (“SEC”). We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. You should consider these risks and uncertainties when you are evaluating us.

Executive Overview

Noble is a leading offshore drilling contractor for the oil and gas industry. At September 30, 2011, our fleet consisted of 79 mobile offshore drilling units located worldwide as follows: 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Additionally, we have one floating production storage and offloading unit (“FPSO”). At September 30, 2011, we had 13 units under construction.

Our global fleet is currently located in the following areas: the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian Pacific. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921.

38

Outlook

During the third quarter of 2011, we began to see some stability in the offshore drilling market after a period of volatility, which occurred following the Deepwater Horizon incident and the U.S. governmental response to the incident. In the U.S. Gulf of Mexico, the granting of permits and publication of new safety rules has led to more stable activity levels within the industry itself, especially as it relates to the deepwater markets. This resumption of activity has led to greater investment within the Gulf of Mexico and is contributing to an improvement in dayrates for deepwater and ultra-deepwater rigs worldwide. While there are still risks, including potential third party environmental lawsuits targeting the permitting process, possible new drilling regulations, a failure of the Bureau of Ocean Energy Management Regulation and Enforcement (“BOEMRE”) to issue permits in a timely manner and the adoption by individual operators of new drilling or equipment standards exceeding those required by regulatory bodies. We believe those risks may be reduced as long as rigs continue to work without incident in the Gulf of Mexico.

The offshore drilling market displayed notable indications of improvement in the third quarter even though there continues to be uncertainty regarding the sustainability of the global economic recovery, which is proceeding unevenly in different geographic regions. In addition to the political instability in certain oil producing nations in the Middle East and North Africa, there is also uncertainty regarding recovery in the credit markets, particularly in Europe and North America. During the first nine months of 2011, oil prices fluctuated as a result of supply side concerns in response to political unrest in the Middle East and North Africa. Natural gas prices in the United States fluctuated during the first nine months of the year, but ended the period in-line with year-end 2010 pricing. We believe there continue to be competing factors which could impact the volatility in the offshore drilling market and the prices of oil and gas commodities for the foreseeable future.

Even with the instability in the global economy noted above, we have seen an increase in demand for offshore drilling services in the first nine months of 2011. While the risk of negative developments in the U.S. Gulf of Mexico could continue to have an impact on the deepwater market segment in the short-term, we believe that the long-term outlook continues to strengthen. Market dayrates for new ultra-deepwater units remain generally above $450,000, which is significantly lower than the peak rates achieved in 2007-2008, but higher than rates seen in 2010. Short-term fixtures for very high specification units have exceeded $500,000, and we believe this is an indication of where the market could be going should there continue to be a strong demand for ultra-deepwater drilling units. Although demand in the jackup segment decreased slightly during 2010, utilization rates for units stabilized in the first nine months of 2011, especially for those units equipped with standard drilling features. We continue to see differentiation in the jackup market segment with newer units having utilization rates exceeding those units that entered service before 2000. Likewise, there has been a bifurcation of dayrates between older and newer units in the jackup market with newer units earning a premium as customers display a preference for technologically advanced and efficient drilling alternatives.

Demand for our drilling services generally depends on a variety of economic and political factors, including worldwide demand for oil and gas, the ability of the Organization of Petroleum Exporting Countries (“OPEC”) to set and maintain production levels and pricing, the level of production of non-OPEC countries and the policies of various governments addressing access to their oil and gas reserves. Our results of operations depend on offshore drilling activity worldwide. Historically, oil and gas prices and market expectations of potential changes in these prices have significantly affected that level of activity. Generally, higher oil and natural gas prices or our customers’ expectations of higher prices result in greater demand for our services. Demand for our services is also a function of the worldwide supply of mobile offshore drilling units. Industry analysts widely acknowledge that a significant expansion of industry supply of both jackups and ultra-deepwater units has commenced, the majority of which currently have no contract. The introduction of additional non-contracted rigs into the marketplace could have an adverse effect on demand for our services or the dayrates we are able to achieve.

In addition, as a result of exploration discoveries offshore Brazil, Petroleo Brasileiro S.A. (“Petrobras”), the Brazilian national oil company, announced a plan to construct up to 28 deepwater rigs in Brazil and accepted bids in 2010 to construct these units from a number of shipyards and drilling contractors. A deepwater drilling rig construction industry possessing the scope and experience to efficiently address this volume of work does not currently exist in Brazil and Noble did not participate in these bids primarily because we viewed the capital risk associated with constructing a unit in Brazil as inappropriate. Petrobras awarded the first tranche of seven drillships to a Brazilian shipyard for delivery beginning in 2015. In March 2011, Petrobras cancelled the bids for the remaining 21 newbuild units. In June 2011, Petrobras issued a new tender to build 21 ultra deepwater rigs in Brazil to operate with Petrobras under 10 to 15 year contracts with drilling operations commencing within 48 months after the contract is awarded. Petrobras opened the tenders late October 2011, receiving offers for the 21 rigs from local Brazilian and Norwegian based drillers, which Petrobras is currently reviewing. Petrobras is also reviewing offers received for existing deepwater drilling units. The potential increase in supply from the Petrobras newbuilds could also adversely impact overall industry dayrates and economics.

39

As of September 30, 2011, we have 12 rigs, including the deepwater semisubmersible rig Noble Max Smith under contract in Mexico with Pemex Exploracion y Produccion (“Pemex”), and seven of these rigs have contracts scheduled to expire in 2011. Pemex continues to tender for additional jackup rigs as they attempt to increase the number of working rigs. Some previous tenders published by Pemex contained a requirement that certain units must have entered service since the year 2000. While Pemex did not succeed in securing a significant number of newer rigs from those published tenders, we cannot predict whether this age requirement will be present in future Pemex tenders. If this requirement is present in future tenders, it could require us to seek work for our rigs in other locations, as the ages of our rigs currently operating in Mexico do not meet this requirement. If such work is not available, it could lead to additional idle time on some of our rigs. We cannot predict how many rigs might be affected or how long they could remain idle. We remain optimistic that many, if not all, of our rigs currently operating in Mexico will be able to continue to secure long-term work with Pemex.

In January 2011, we announced the signing of a Memorandum of Understanding (“MOU”) with Petrobras regarding operations in Brazil. Under the terms of the MOU, we would substitute the drillship Noble Phoenix, then under contract with Royal Dutch Shell (“Shell”) in Southeast Asia, for the drillship Noble Muravlenko. In January 2011, Shell agreed to release the Noble Phoenix from its contract, which was effective in March 2011. During the second quarter of 2011, Petrobras formally approved the rig substitution. We expect that acceptance of the Noble Phoenix will take place in the first quarter of 2012. In connection with the cancelation of the contract on the Noble Phoenix, we recognized a non-cash gain of approximately $52.5 million during the first quarter of 2011, which represents the unamortized fair value of the in-place contract assumed in connection with the Frontier acquisition.

Also in January 2011, as a result of the substitution discussed above, we reached a decision not to proceed with the previously announced reliability upgrade to the Noble Muravlenko that was scheduled to take place in 2013. As a result, we incurred a non-cash charge of approximately $32.6 million related to the termination of outstanding shipyard contracts.

In connection with our existing drilling contracts with Petrobras for two of our drillships operating in Brazil, we approved certain shipyard reliability upgrade projects for these drillships, the Noble Leo Segerius and the Noble Roger Eason. These upgrade projects, planned through 2012, are designed to enhance the reliability and operational performance of these drillships. During the first quarter, the Noble Leo Segerius entered a shipyard in Brazil for its reliability upgrade. There are a number of risks associated with shipyard projects of this nature, particularly in Brazil, including potential project delays and cost overruns because of labor, customs, local shipyard, local content and other issues. In addition, the drilling contracts for these vessels provide Petrobras with certain rights of termination in the event of excessive downtime, and it is possible that Petrobras could exercise this right in the future with respect to one or both of these drillships. We intend to continue to closely monitor and discuss with Petrobras the status of these projects and plan to take appropriate steps to mitigate identified risks, which depending upon the circumstances, could involve a variety of options.

While we cannot predict the future level of demand or dayrates for our drilling services or future conditions in the offshore contract drilling industry, we continue to believe we are well positioned within the industry and believe our acquisition of Frontier and recent newbuild announcements further strengthen our position, especially in deepwater drilling.

40

Results and Strategy

In the third quarter of 2011, we recognized net income attributable to Noble-Swiss of $135 million, or $0.53 per diluted share, on total revenues of $738 million. Sequential results of key metrics are as follows:

	Three Months Ended
	September 30,			June 30,
	2011			2011
Average dayrate	$	151,782		$	140,296
Average utilization		76	%		70	%
Daily contract drilling services costs	$	77,205		$	80,985
Contract drilling services margin		49	%		43	%

We have actively expanded our offshore drilling and deepwater capabilities in recent years through the construction of new rigs, and as part of this technical and operational expansion we plan to continue pursuing opportunities to upgrade our fleet to achieve greater technological capability, which would lead to increased drilling efficiencies. Our business strategy also focuses on the active expansion of our worldwide offshore drilling and deepwater capabilities through upgrades and modifications, acquisitions, divestitures of lower specification units and the deployment of our drilling assets in important oil and gas producing areas. At September 30, 2011, we continued our newbuild strategy with the following 13 projects:

• two dynamically positioned, ultra-deepwater, harsh environment Globetrotter-class drillships, which are scheduled to be delivered in the fourth quarter of 2011 and the second quarter of 2013, respectively and complete acceptance testing in the first quarter of 2012 and the fourth quarter of 2013, respectively;

• one dynamically positioned, ultra-deepwater, harsh environment Bully-class drillship owned through a joint venture with Shell which is scheduled to be delivered in the fourth quarter of 2011 and complete acceptance testing in the first quarter of 2012;

• four dynamically positioned, ultra-deepwater, harsh environment drillships under construction at Hyundai Heavy Industries Co. Ltd. which are estimated to be delivered from the shipyard to begin acceptance testing as follows: the second quarter of 2013, the fourth quarter of 2013, the second quarter of 2014, and the second half of 2014, respectively; and

• six high-specification heavy duty, harsh environment jackup rigs which are estimated to be delivered from the shipyard to begin acceptance testing as follows: first quarter of 2013, third quarter of 2013, fourth quarter of 2013, first quarter of 2014, fourth quarter of 2014 and first quarter of 2015, respectively.

Of our 13 rigs under construction as of September 30, 2011, four drillships and all six jackups are being constructed at a shipyard with a strong history of successful execution. Also, four of the drillships are contracted for five years or more, while the remaining nine rigs are being constructed without contracts.

As part of our business strategy, we continue to review our fleet and the strategic benefit of our lower specification units. As part of this process, we may dispose of some of our lower specification units, and we are considering potential options.

Acquisition of FDR Holdings Limited

On July 28, 2010, Noble-Swiss and Noble AM Merger Co., a Cayman Islands company and indirect wholly-owned subsidiary of Noble-Swiss (“Merger Sub”), completed the acquisition of FDR Holdings Limited, a Cayman Islands company (“Frontier”). Under the terms of the Agreement and Plan of Merger with Frontier and certain of Frontier’s shareholders, Merger Sub merged with and into Frontier, with Frontier surviving as an indirect wholly-owned subsidiary of Noble-Swiss and a wholly-owned subsidiary of Noble-Cayman. The Frontier acquisition was for a purchase price of approximately $1.7 billion in cash plus liabilities assumed and strategically expanded and enhanced our global fleet. Frontier’s results of operations were included in our results beginning July 28, 2010. We funded the cash consideration paid at closing of approximately $1.7 billion using proceeds from our July 2010 offering of senior notes and existing cash on hand.

41

Contract Drilling Services Backlog

We maintain a backlog (as defined below) of commitments for contract drilling services. The following table sets forth as of September 30, 2011 the amount of our contract drilling services backlog and the percent of available operating days committed for the periods indicated:

			Year Ending December 31,
	Total		2011 (1)			2012			2013			2014			2015-2023
						(In millions)
Contract Drilling Services Backlog
Semisubmersibles/Drillships (2) (6) (7)	$	11,219	$	519		$	1,865		$	1,665		$	1,780		$	5,390
Jackups/Submersibles (3)		1,619		296			750			386			184			3
Total (4)	$	12,838	$	815		$	2,615		$	2,051		$	1,964		$	5,393
Percent of Available Operating Days
Committed (5)				81	%		53	%		33	%		24	%		5	%

(1)	Represents a three-month period beginning October 1, 2011.
(2)	Our drilling contracts with Petrobras provide an opportunity for us to earn performance bonuses based on downtime experienced for our rigs operating offshore Brazil. With respect to our semisubmersibles operating offshore Brazil for Petrobras, we have included in our backlog an amount equal to 75 percent of potential performance bonuses for such semisubmersibles, which amount is based on and generally consistent with our historical earnings of performance bonuses for these rigs. With respect to our drillships presently operating offshore Brazil for Petrobras, we (a) have not included in our backlog any performance bonuses for periods prior to the commencement of certain upgrade projects planned for 2011 through 2012, which projects are designed to enhance the reliability and operational performance of these drillships, and (b) have included in our backlog an amount equal to 75 percent of potential performance bonuses for periods after the estimated completion of such upgrade projects. Our backlog for semisubmersibles/drillships includes approximately $266 million attributable to these performance bonuses.
	The drilling contracts with Shell for the Noble Globetrotter I, Noble Globetrotter II, Noble Jim Thompson, Noble Jim Day and Noble Clyde Boudreaux, as well as the letter of intent for the unnamed HHI Drillship I, provide opportunities for us to earn performance bonuses based on key performance indicators as defined by Shell. With respect to these contracts, we have included in our backlog an amount equal to 75 percent of the potential performance bonuses for these rigs, except for the Noble Clyde Boudreaux where limited bonus is expected. Our backlog for these rigs includes approximately $480 million attributable to these performance bonuses.
(3)	Our drilling contracts with Pemex for certain jackups operating offshore in Mexico are subject to price review and adjustment of the rig dayrate. Presently, the contract for one jackup has a dayrate indexed to the world average of the highest dayrates published by ODS-Petrodata. After an initial firm dayrate period, the dayrate is generally adjusted quarterly based on formulas calculated from the index. Our contract drilling services backlog has been calculated using the September 30, 2011 index-based dayrate for periods subsequent to the firm dayrate period.

42

(4) a) Pemex has the ability to cancel its drilling contracts on 30 days or less notice without Pemex’s making an early termination payment. As of September 30, 2011, we had twelve rigs contracted to Pemex in Mexico, plus one additional rig scheduled to go to work for Pemex in late December 2011, and our backlog includes approximately $387 million related to such contracts at September 30, 2011.

b) Our drilling contracts generally provide the customer an early termination right in the event we fail to meet certain performance standards, including downtime thresholds. For example, Petrobras has the right to terminate its contracts in the event of excessive downtime. While we do not currently anticipate any cancellations as a result of events that have occurred to date, clients may from time to time have the contractual right to do so, which is the case with the drilling contracts for the Noble Dave Beard and the Noble Paul Wolff. However, we have not received any notification concerning contract cancellations to date.

(5)	Percentages take into account additional capacity from the estimated dates of deployment of our newbuild rigs that are scheduled to commence operations during 2011 through 2015.
(6)	It is not possible to accurately determine the impact to our revenues or backlog resulting from efforts by operators to cancel or modify drilling contracts due to U.S. government imposed restrictions and the rigorous scrutiny for issuance of new drilling permits, and other consequences of actions by the U.S. government. At September 30, 2011, backlog related to our U.S. Gulf of Mexico deepwater rigs totaled $5.5 billion, $206 million of which represents backlog for the three-month period ending December 31, 2011.
	We entered into an agreement with Shell, effective June 27, 2010, which provides that Shell may suspend the contracts on three of our units operating in the U.S. Gulf of Mexico during any period of regulatory restriction by paying reduced suspension dayrates in lieu of the normal operating dayrates. The term of the initial contract is also extended by the suspension period. The impact of this agreement is to shift backlog among periods with an immaterial increase to total backlog because of the reduced suspension rates.
(7)	Noble and a subsidiary of Shell are involved in joint venture agreements to build, operate, and own both the Noble Bully I and the Noble Bully II. Pursuant to these agreements, each party has an equal 50 percent share in both vessels. As of September 30, 2011, the combined amount of backlog for these rigs totaled $2.4 billion, all of which is included in our backlog. Noble’s net interest in the backlog for these rigs was $1.2 billion.

Our contract drilling services backlog reported above reflects estimated future revenues attributable to both signed drilling contracts and letters of intent that we expect will become binding contracts. A letter of intent is generally subject to customary conditions, including the execution of a definitive drilling contract. For a number of reasons, it is possible that some customers that have entered into letters of intent will not enter into signed drilling contracts. We calculate backlog for any given unit and period by multiplying the full contractual operating dayrate for such unit by the number of days remaining in the period. The reported contract drilling services backlog does not include amounts representing revenues for mobilization, demobilization and contract preparation, which are not expected to be significant to our contract drilling services revenues, amounts constituting reimbursables from customers or amounts attributable to uncommitted option periods under drilling contracts or letters of intent.

The amount of actual revenues earned and the actual periods during which revenues are earned may be different than the backlog amounts and backlog periods set forth in the table above for various factors, including, but not limited to, shipyard and maintenance projects, operational downtime, weather conditions, bonuses and other factors that result in applicable dayrates lower than the full contractual operating dayrate. In addition, amounts included in the backlog may change because drilling contracts may be varied or modified by mutual consent or customers may exercise early termination rights contained in some of our drilling contracts or decline to enter into a drilling contract after executing a letter of intent. As a result, our backlog as of any particular date may not be indicative of our actual operating results for the subsequent periods for which the backlog is calculated.

As of September 30, 2011, we estimate Shell and Petrobras represented approximately 63% and 22%, respectively, of our backlog.

43

Internal Investigation

In 2007, we began, and voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of, an internal investigation of the legality under the United States Foreign Corrupt Practices Act (“FCPA”) and local laws of certain reimbursement payments made by our Nigerian affiliate to our customs agents in Nigeria. In 2010, we finalized settlements of this matter with each of the SEC and the DOJ. Pursuant to these settlements, we agreed to pay fines and penalties to the DOJ and the SEC and to certain undertakings, including refraining from violating the FCPA and other anti-corruption laws, self-reporting any violations of the FCPA or such laws to the DOJ and reporting to the DOJ on an annual basis our progress on anti-corruption compliance matters. Our ability to comply with the terms of the settlements is dependent on the success of our ongoing compliance program, including our ability to continue to manage our agents and supervise, train and retain competent employees, and the efforts of our employees to comply with applicable law and our code of business conduct and ethics.

In January 2011, the Nigerian Economic and Financial Crimes Commission and the Nigerian Attorney General Office initiated an investigation into these same activities. A subsidiary of Noble-Swiss resolved this matter through the execution of a non-prosecution agreement dated January 28, 2011. Pursuant to this agreement, the subsidiary paid $2.5 million to resolve all charges and claims of the Nigerian Government. Any similar investigations or charges and any additional sanctions we may incur could damage our reputation and result in substantial fines, sanctions, civil and/or criminal penalties and curtailment of operations in certain jurisdictions and might adversely affect our business, results of operations or financial condition. Further, resolving any such investigation could be expensive and consume significant time and attention of our senior management.

As of September 30, 2011, all of our rigs operating in Nigeria were operating under temporary import permits. To date, we have been successful in obtaining new, or extending existing, temporary import permits. However, there can be no assurance that we will be able to obtain new permits or further extensions of permits necessary to continue the operation of our rigs in Nigeria. If we cannot obtain a new permit or an extension necessary to continue operations of any rig, we may need to cease operations under the drilling contract for such rig and relocate such rig from Nigerian waters. We cannot predict what impact these events may have on any such contract or our business in Nigeria, and we could face additional fines and sanctions in Nigeria. Furthermore, we cannot predict what changes, if any, relating to temporary import permit policies and procedures may be established or implemented in Nigeria in the future, or how any such changes may impact our business there.

In 2010, the Nigerian Oil and Gas Industry Content Development Bill was signed into law. The law is designed to create Nigerian content in operations and transactions within the Nigerian oil and gas industry. The law sets forth certain requirements for the utilization of Nigerian human resources and goods and services in oil and gas projects and creates a Nigerian Content Development and Monitoring Board (“NCD Board”) to implement and monitor the law and develop regulations pursuant to the law. The law also establishes a Nigerian Content Development Fund to fund the implementation of the law. The implementation of the law is ongoing and both the manner and timing of final implementation is uncertain. We have participated in a number of meetings with the NCD Board and are analyzing how we might reorganize our operations in Nigeria to meet these requirements, including creating third party noncontrolling interests in our operating assets. We cannot predict the impact the new law may have on our existing or future operations in Nigeria, but our operations there could be significantly and adversely affected.

Results of Operations

For the Three Months Ended September 30, 2011 and 2010

General

Net income attributable to Noble Corporation (Noble-Swiss) for the three months ended September 30, 2011 (the “Current Quarter”) was $135 million, or $0.53 per diluted share, on operating revenues of $738 million, compared to net income for the three months ended September 30, 2010 (the “Comparable Quarter”) of $86 million, or $0.34 per diluted share, on operating revenues of $613 million.

The consolidated financial statements of Noble-Swiss include the accounts of Noble-Cayman, and Noble-Swiss conducts substantially all of its business through Noble-Cayman and its subsidiaries. As a result, the financial position and results of operations for Noble-Cayman, and the reasons for material changes in the amount of revenue and expense items between 2011 and 2010, would be the same as the information presented below regarding Noble-Swiss in all material respects, except operating income for Noble-Cayman for the three months ended September 30, 2011 was $19 million higher than operating income for Noble-Swiss for the same period, primarily as a result of depreciation related to Swiss-owned assets and operating costs directly attributable to Noble-Swiss for stewardship related services.

44

Rig Utilization, Operating Days and Average Dayrates

Operating revenues and operating costs and expenses for our contract drilling services segment are dependent on three primary metrics — rig utilization, operating days and dayrates. The following table sets forth the average rig utilization, operating days and average dayrates for our rig fleet for the three months ended September 30, 2011 and 2010:

	Average Rig						Operating							Average
	Utilization (1)						Days (2)							Dayrates
	Three Months Ended						Three Months Ended							Three Months Ended
	September 30,						September 30,							September 30,
	2011			2010			2011		2010		%Change			2011		2010		%Change
Jackups		82	%		77	%		3,229		3,032		6	%	$	89,352	$	90,791		-2	%
Semisubmersibles		84	%		90	%		1,086		1,057		3	%		315,034		172,727		82	%
Drillships		60	%		100	%		329		468		-30	%		225,669		229,963		-2	%
FPSO/Submersibles		0	%		26	%		—		64		—			—		304,000		—
Total		76	%		79	%		4,644		4,621		0	%	$	151,782	$	126,581		20	%

(1)	Information reflects our policy of reporting on the basis of the number of rigs in our fleet excluding newbuild rigs under construction.
(2)	Information reflects the number of days that our rigs were operating under contract.

Contract Drilling Services

The following table sets forth the operating revenues and the operating costs and expenses for our contract drilling services segment for the three months ended September 30, 2011 and 2010 (in thousands):

	Three Months Ended
	September 30,				Change
	2011		2010		$			%
Operating revenues:
Contract drilling services	$	704,892	$	584,919	$	119,973			21	%
Reimbursables (1)		14,646		18,488		(3,842	)		-21	%
Other		8		635		(627	)		-99	%
	$	719,546	$	604,042	$	115,504			19	%
Operating costs and expenses:
Contract drilling services	$	358,547	$	315,844	$	42,703			14	%
Reimbursables (1)		11,362		13,696		(2,334	)		-17	%
Depreciation and amortization		162,837		140,199		22,638			16	%
Selling, general and administrative		27,212		25,220		1,992			8	%
		559,958		494,959		64,999			13	%
Operating income	$	159,588	$	109,083	$	50,505			46	%

(1) We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows.

Operating Revenues. Increases in contract drilling services revenues for the Current Quarter as compared to the Comparable Quarter were driven by increases in both average dayrates and operating days. The 20 percent increase in average dayrates increased revenues by approximately $117 million, and the slight increase in operating days increased revenues by an additional $3 million.

45

The increase in contract drilling services revenues primarily relates to our semisubmersibles and jackups, which generated approximately $160 million and $13 million more revenue, respectively, in the Current Quarter.

The increase in semisubmersible average dayrates resulted in a $155 million increase in revenues from the Comparable Quarter while the increase in operating days of three percent resulted in an additional $5 million increase in revenues. The increase in semisubmersibles revenue is a result of drilling restrictions in the U.S. Gulf of Mexico in the Comparable Quarter, where lower standby rates replaced the standard operating dayrates for a majority of our contracts. The increase in operating days is primarily from the Noble Jim Day and the Noble Homer Ferrington, which were added to the fleet subsequent to September 30, 2010.

The six percent increase in jackup operating days resulted in an $18 million increase in revenues, which was partially offset by a decrease in jackup average dayrates of two percent which resulted in a $5 million decrease in revenues from the Comparable Quarter. The increase in utilization primarily related to rigs in Mexico that commenced contracts in the second quarter of 2011 and operated for the entire Current Quarter. The reduction in average dayrates resulted primarily from the contractual re-pricing of rigs in the Middle East, the North Sea, and Mexico for changes in market conditions in the global shallow water market.

The increases in revenue for the above rig classes were partially offset by lower revenues from our drillships and FPSO/submersibles. Revenue from our drillships decreased $33 million in the Current Quarter as compared to the Comparable Quarter. The decrease was primarily attributable to a number of rigs being in the shipyard or stacked during the Current Quarter. Revenue from our FPSO, the Noble Seillean, decreased $20 million as it did not operate in the Current Quarter.

Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $43 million for the Current Quarter as compared to the Comparable Quarter. In addition to the rigs added to the fleet as part of the Frontier acquisition, the Noble Jim Day was placed into service in January 2011. These additional units added approximately $15 million of operating costs in the Current Quarter. Excluding the additional expenses related to these rigs, our contract drilling costs increased $28 million in the Current Quarter from the Comparable Quarter. This change was primarily driven by an $11 million increase in labor and a $10 million increase in mobilization, transportation and fuel costs related to rigs returning, or preparing to return, to work in the Current Quarter, a $4 million increase in safety and training costs and a $3 million increase in rotation costs.

The increase in depreciation and amortization in the Current Quarter from the Comparable Quarter was primarily attributable to depreciation on the Noble Jim Day, rigs added to the fleet as part of the Frontier acquisition and additional depreciation related to other capital expenditures on our fleet since the Comparable Quarter.

46

Other

The following table sets forth the operating revenues and the operating costs and expenses for our other services for the three months ended September 30, 2011 and 2010:

	Three Months Ended
	September 30,					Change
	2011		2010			$		%
Operating revenues:
Labor contract drilling services	$	15,564	$	7,887		$	7,677		97	%
Reimbursables (1)		2,792		689			2,103		305	%
	$	18,356	$	8,576		$	9,780		114	%
Operating costs and expenses:
Labor contract drilling services	$	8,053	$	5,302		$	2,751		52	%
Reimbursables (1)		2,609		655			1,954		298	%
Depreciation and amortization		3,376		3,083			293		10	%
Selling, general and administrative		324		262			62		24	%
		14,362		9,302			5,060		54	%
Operating (loss) income	$	3,994	$	(726	)	$	4,720		*	*

(1)	We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows.
**	Not a meaningful percentage

Operating Revenues and Costs and Expenses. The increase in both revenue and expense primarily relates to the commencement of a refurbishment project with our customer, Shell, for one of its rigs to be operated under a labor contract in Alaska, combined with operational increases and foreign currency fluctuations in our Canadian operations.

The increase in depreciation is for additional corporate-related assets placed in service since the Comparable Quarter.

Other Income and Expenses

Selling, General and Administrative Expenses. Consolidated selling, general and administrative expenses increased $2 million in the Current Quarter as compared to the Comparable Quarter. The increase relates to a $3 million increase in ongoing legal and tax expenses and a $2 million increase in employee-related and miscellaneous costs in the Current Quarter, partially offset by a $3 million decrease related to our FCPA investigation in the Comparable Quarter.

Interest Expense, net of amount capitalized. Interest expense, net of amount capitalized, increased $7 million in the Current Quarter as compared to the Comparable Quarter. The increase is a result of $1.25 billion of debt issued in July 2010, which was used to partially fund the Frontier acquisition, $1.1 billion of debt issued in February 2011, which was primarily used to repay the outstanding balance on our revolving credit facility and to repay our portion of outstanding debt under the joint venture credit facilities, and the $715 million currently drawn on our credit facilities.

Income Tax Provision. Our income tax provision decreased $3 million in the Current Quarter primarily as a result of a lower effective tax rate of 12 percent in the Current Quarter as compared to 19 percent in the Comparable Quarter, which decreased income tax expense by approximately $12 million. The decrease in the effective tax rate was a result of certain discrete tax items totaling approximately $11 million. Partially offsetting the decrease is an increase in pre-tax earnings of approximately 43 percent, which increased income tax expense by approximately $9 million in the Current Quarter.

47

For the Nine Months Ended September 30, 2011 and 2010

General

Net income attributable to Noble Corporation (Noble-Swiss) for the nine months ended September 30, 2011 (the “Current Period”) was $244 million, or $0.96 per diluted share, on operating revenues of $1.9 billion, compared to net income for the nine months ended September 30, 2010 (the “Comparable Period”) of $675 million, or $2.62 per diluted share, on operating revenues of $2.2 billion.

The consolidated financial statements of Noble-Swiss include the accounts of Noble-Cayman, and Noble-Swiss conducts substantially all of its business through Noble-Cayman and its subsidiaries. As a result, the financial position and results of operations for Noble-Cayman, and the reasons for material changes in the amount of revenue and expense items between 2011 and 2010, would be the same as the information presented below regarding Noble-Swiss in all material respects, except operating income for Noble-Cayman for the nine months ended September 30, 2011 was $46 million higher than operating income for Noble-Swiss for the same period, primarily as a result of depreciation related to Swiss owned assets and operating costs directly attributable to Noble-Swiss for stewardship related services.

Rig Utilization, Operating Days and Average Dayrates

Operating revenues and operating costs and expenses for our contract drilling services segment are dependent on three primary metrics — rig utilization, operating days and dayrates. The following table sets forth the average rig utilization, operating days and average dayrates for our rig fleet for the nine months ended September 30, 2011 and 2010:

	Average Rig						Operating							Average
	Utilization (1)						Days (2)							Dayrates
	Nine Months Ended						Nine Months Ended							Nine Months Ended
	September 30,						September 30,							September 30,
	2011			2010			2011		2010		%Change			2011		2010		%Change
Jackups		72	%		80	%		8,407		9,357		-10	%	$	84,084	$	101,424		-17	%
Semisubmersibles		80	%		92	%		3,042		3,010		1	%		288,246		300,971		-4	%
Drillships		61	%		89	%		1,007		897		12	%		251,421		230,306		9	%
FPSO/Submersibles		0	%		10	%		—		64		—			—		303,056		—
Total		69	%		80	%		12,456		13,328		-7	%	$	147,476	$	156,142		-6	%

(1)	Information reflects our policy of reporting on the basis of the number of rigs in our fleet excluding newbuild rigs under construction.
(2)	Information reflects the number of days that our rigs were operating under contract.

48

Contract Drilling Services

The following table sets forth the operating revenues and the operating costs and expenses for our contract drilling services segment for the nine months ended September 30, 2011 and 2010 (in thousands):

	Nine Months Ended
	September 30,					Change
	2011			2010		$			%
Operating revenues:
Contract drilling services	$	1,837,047		$	2,081,075	$	(244,028	)		-12	%
Reimbursables (1)		59,232			54,780		4,452			8	%
Other		766			1,449		(683	)		-47	%
	$	1,897,045		$	2,137,304	$	(240,259	)		-11	%
Operating costs and expenses:
Contract drilling services	$	1,001,638		$	845,870	$	155,768			18	%
Reimbursables (1)		45,408			42,191		3,217			8	%
Depreciation and amortization		477,568			376,754		100,814			27	%
Selling, general and administrative		72,020			70,523		1,497			2	%
(Gain)/Loss on contract extinguishment		(21,202	)		—		(21,202	)		*	*
		1,575,432			1,335,338		240,094			18	%
Operating income	$	321,613		$	801,966	$	(480,353	)		-60	%

(1)	We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows.
**	Not a meaningful percentage

Operating Revenues. Decreases in contract drilling services revenues for the Current Period as compared to the Comparable Period were driven by reductions in both average dayrates and operating days. The six percent decrease in average dayrates reduced revenues by approximately $108 million, and the seven percent decrease in operating days decreased revenues by an additional $136 million.

The decrease in contract drilling services revenues primarily relates to our jackups, semisubmersibles and FPSO/submersibles, which generated approximately $242 million, $29 million and $19 million less revenue, respectively, in the Current Period.

The decrease in jackup average dayrates of 17 percent resulted in a $146 million decrease in revenues from the Comparable Period. The reduction in average dayrates was primarily from the contractual re-pricing of rigs in the Middle East, the North Sea, and Mexico for changes in market conditions in the global shallow water market. The 10 percent decline in jackup operating days resulted in a $96 million decline in revenues. The decrease in utilization primarily related to rigs coming off of contract in Mexico during the first quarter of 2011, the majority of which did not return to work until the second quarter.

The decrease in semisubmersible dayrates of four percent resulted in the $38 million decrease in revenues from the Comparable Period. The decrease in semisubmersibles revenue is a result of drilling restrictions in the U.S. Gulf of Mexico where lower standby rates replaced the standard operating dayrates for a majority of our contracts during the first half of the year. These decreases were partially offset by a $9 million increase in revenues during the Current Period driven by 32 additional operating days.

Revenue from our FPSO, the Noble Seillean, decreased $19 million as it did not operate in the Current Period.

49

The decreases in revenue for the above rig classes were partially offset by an increase in revenue of $47 million from our drillships. The increase was primarily attributable to a nine percent increase in average dayrates and 12 percent increase in operating days, which contributed additional revenue in the Current Period of $21 million and $25 million, respectively. The increase is primarily attributable to operations from the drillships added to the fleet as part of the Frontier acquisition.

Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $156 million for the Current Period as compared to the Comparable Period. In addition to the rigs added to the fleet as part of the Frontier acquisition, the Noble Dave Beard and the Noble Jim Day were placed into service in March 2010 and January 2011, respectively. These additions added approximately $108 million of operating costs in the Current Period. Excluding the additional expenses related to these rigs, our contract drilling costs increased $48 million in the Current Period from the Comparable Period. This change was primarily driven by a $13 million increase in maintenance and rig-related expense, $12 million increase in mobilization costs, $8 million increase in fuel and transportation costs and $3 million increase in labor costs related to our rigs returning, or preparing to return, to work in Brazil and Mexico, $6 million increase in rotation costs and $6 million increase in safety and training costs.

The increase in depreciation and amortization in the Current Period from the Comparable Period was primarily attributable to depreciation on newbuilds added to the fleet, the addition of the Frontier rigs and additional depreciation related to other capital expenditures on our fleet since the Comparable Period.

Other

The following table sets forth the operating revenues and the operating costs and expenses for our other services for the nine months ended September 30, 2011 and 2010:

	Nine Months Ended
	September 30,					Change
	2011		2010			$		%
Operating revenues:
Labor contract drilling services	$	43,123	$	23,704		$	19,419		82	%
Reimbursables (1)		4,619		2,383			2,236		94	%
	$	47,742	$	26,087		$	21,655		83	%
Operating costs and expenses:
Labor contract drilling services	$	25,326	$	16,570		$	8,756		53	%
Reimbursables (1)		4,389		2,268			2,121		94	%
Depreciation and amortization		9,886		8,612			1,274		15	%
Selling, general and administrative		863		738			125		17	%
		40,464		28,188			12,276		44	%
Operating (loss) income	$	7,278	$	(2,101	)	$	9,379		*	*

(1)	We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows.
**	Not a meaningful percentage

Operating Revenues and Costs and Expenses. The increase in both revenue and expense primarily relates to the initial start-up costs and commencement of a refurbishment project with our customer, Shell, for one of its rigs to be operated under a labor contract in Alaska, combined with operational increases and foreign currency fluctuations in our existing Canadian operations.

The increase in depreciation is for additional corporate-related assets placed in service since the Comparable Period.

50

Other Income and Expenses

Selling, General and Administrative Expenses. Consolidated selling, general and administrative expenses increased $2 million in the Current Period as compared to the Comparable Period. The increase relates to a $5 million increase in ongoing legal and tax expenses and a $3 million increase in employee-related and miscellaneous costs in the Current Period, partially offset by a $6 million decrease related to our FCPA investigation in the Comparable Period.

Interest Expense, net of amount capitalized. Interest expense, net of amount capitalized, increased $40 million in the Current Period as compared to the Comparable Period. The increase is a result of $1.25 billion of debt issued in July 2010, which was used to partially fund the Frontier acquisition, $1.1 billion of debt issued in February 2011, which was primarily used to repay the outstanding balance on our revolving credit facility and to repay our portion of outstanding debt under the joint venture credit facilities, and Current Period drawdowns on the credit facilities.

Income Tax Provision. Our income tax provision decreased $84 million in the Current Period primarily from a decline in pre-tax earnings of approximately 64 percent, which reduced income tax expense by approximately $81 million in the Current Period. The remaining $3 million decrease is a result of a lower effective tax rate of 15 percent in the Current Period as compared to 16 percent in the Comparable Period. The decrease in the effective tax rate was a result of certain discrete tax items totaling approximately $17 million, partially offset by a change in our geographic revenue mix primarily resulting from drilling restrictions in the U.S. Gulf of Mexico.

51

Liquidity and Capital Resources

Overview

Net cash from operating activities for the Current Period was $474 million, which compared to $1.3 billion in the Comparable Period. The decrease in net cash from operating activities in the Current Period was primarily attributable to a significant decline in net income coupled with an increase in accounts receivable. The increase in accounts receivable is primarily related to the increased fleet activity in 2011 and certain disputed amounts, which we believe will ultimately be collected. During the Current Period, we entered into an additional $600 million revolving credit facility, and at September 30, 2011 we had $485 million available under our credit facilities. We had working capital of $352 million and $110 million at September 30, 2011 and December 31, 2010, respectively. Primarily as a result of our $1.1 billion debt offering in February 2011 and an increase in net borrowings on our credit facilities during the Current Period of $675 million, total debt as a percentage of total debt plus equity increased to 32 percent at September 30, 2011 from 28 percent at December 31, 2010. Additionally, at September 30, 2011, we had a total contract drilling services backlog of approximately $12.8 billion. Our backlog as of September 30, 2011 reflects a commitment of 81 percent of operating days for the remainder of 2011 and 53 percent for 2012. See additional information regarding our backlog at “Contract Drilling Services Backlog.”

Our principal capital resource in the Current Period was cash generated from our $1.1 billion senior notes offering, net borrowings under our bank credit facilities of $675 million and net cash from operating activities of $474 million.

Our currently anticipated cash flow needs include the following:

• normal recurring operating expenses;

• committed capital expenditures, including expenditures for newbuild projects currently underway;

• discretionary capital expenditures, including various capital upgrades; and

• payments of return of capital in the form of a reduction of par value of our shares (in lieu of dividends).

We currently expect to fund these cash flow needs with cash generated by our operations, cash on hand and borrowings under our existing bank credit facilities. However, given the level of expenditures we expect to incur through the end of 2012, a significant portion of which relates to our newbuild program, we may require capital in excess of the amount provided through these sources. Subject to market and other conditions, we may raise such additional capital in a number of ways, including accessing capital markets, obtaining additional lines of credit or disposing of assets. We also retain the flexibility to delay or cancel certain discretionary capital expenditures as necessary.

Capital Expenditures

Our primary liquidity requirement during 2011 is for capital expenditures. Capital expenditures, including capitalized interest, totaled $2.0 billion and $886 million for the nine months ended September 30, 2011 and 2010, respectively. Capital expenditures for 2010 do not include the fair value of assets acquired as part of the Frontier acquisition.

52

At September 30, 2011, we had 13 rigs under construction, and capital expenditures for new construction during the first nine months of 2011 totaled $1.3 billion, as follows (in millions):

Rig type/name
Wholly-owned drillships
Globetrotter class
Noble Globetrotter I	$	176.2
Noble Globetrotter II		78.3
Gusto P10,000
HHI Drillship I		161.1
HHI Drillship II		161.5
HHI Drillship III		161.6
HHI Drillship IV		50.0
Joint venture owned drillships
GustoMSC Bully PRD 12,000
Noble Bully I		149.4
Noble Bully II		114.1
Wholly-owned jackups
F&G JU-3000N
Noble Jackup I		43.5
Noble Jackup II		2.4
Noble Jackup III		45.1
Noble Jackup IV		44.4
Noble Jackup V		44.4
Noble Jackup VI		44.4
Other recently completed newbuilds		4.2
Total Newbuild Capital Expenditures	$	1,280.6

In addition to the newbuild expenditures noted above, capital expenditures during 2011 consisted of:

• $463 million for major projects, including $130 million to upgrade two drillships currently operating in Brazil;

• $156 million for other capitalized expenditures, including major maintenance and regulatory expenditures which generally have useful lives ranging from 3 to 5 years; and

• $88 million in capitalized interest.

Our total capital expenditure estimate for 2011 is approximately $2.7 billion. In connection with our 2011 and future capital expenditure programs, as of September 30, 2011, we had outstanding commitments, including shipyard and purchase commitments, for approximately $3.4 billion, of which $1.1 billion is anticipated to be spent within the next twelve months. Our remaining 2011 capital expenditure budget and our 2012 capital expenditures will generally be spent at our discretion. We may accelerate or delay capital projects as needed.

From time to time we consider possible projects that would require expenditures that are not included in our capital budget, and such unbudgeted expenditures could be significant. In addition, we will continue to evaluate acquisitions of drilling units from time to time. Other factors that could cause actual capital expenditures to materially exceed plan include delays and cost overruns in shipyards (including costs attributable to labor shortages), shortages of equipment, latent damage or deterioration to hull, equipment and machinery in excess of engineering estimates and assumptions, changes in governmental regulations and requirements and changes in design criteria or specifications during repair or construction.

53

Share Repurchases and Dividends

At September 30, 2011, 6.8 million registered shares remained available under the existing Board authorization for our share repurchase program. No shares have been repurchased under this authorization during the nine months ended September 30, 2011. During the nine months ended September 30, 2011, we acquired approximately 0.3 million shares surrendered by employees for taxes payable upon the vesting of restricted stock and exercises of options for $10 million. Future repurchases by Noble-Swiss will be subject to the requirements of Swiss law, including the requirement that Noble-Swiss and its subsidiaries may only repurchase shares if and to the extent that sufficient freely distributable reserves are available.

In April 2011, our shareholders approved the payment of a return of capital through a reduction of the par value of our shares in a total amount equal to 0.52 CHF per share to be paid in four equal installments scheduled for August 2011, November 2011, February 2012 and May 2012. The payments will be made in U.S. Dollars based on the CHF/USD exchange rate available approximately two business days prior to the payment date. Although the amount of the return of capital, expressed in Swiss francs, is fixed, the amount of the payment in U.S. Dollars will fluctuate based on the exchange rate. The exchange rate as published by the Swiss National Bank on October 28, 2011 was 0.8625 CHF/1.0 USD. These returns of capital will require us to make total cash payments of approximately $38  million during the remainder of 2011 (based on the exchange rate on October 28, 2011).

Our most recent quarterly payment to shareholders in the form of a capital reduction, which was paid on August 18, 2011 to holders of record on August 8, 2011, was 0.13 CHF per share, or an aggregate of approximately $42 million. The declaration and payment of dividends in the future by Noble-Swiss and the making of distributions of capital, including returns of capital in the form of par value or additional paid-in capital reductions, require authorization of the shareholders of Noble-Swiss. The amount of such dividends, distributions and returns of capital will depend on our results of operations, financial condition, cash requirements, future business prospects, contractual restrictions and other factors deemed relevant by our Board of Directors and shareholders.

Credit Facilities and Long-Term Debt

We have two separate revolving credit facilities in place which provide us with a total borrowing capacity of $1.2 billion. One credit facility, which has a capacity of $600 million, matures in 2013, and during the first quarter of 2011, we entered into an additional $600 million revolving credit facility which matures in 2015 (together referred to as the “Credit Facilities”). The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits our ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60. We were in compliance with all covenants as of September 30, 2011.

The Credit Facilities provide us with the ability to issue up to $300 million in letters of credit in the aggregate. While the issuance of letters of credit does not increase our borrowings outstanding under the Credit Facilities, it does reduce the amount available. At September 30, 2011, we had borrowings of $715 million outstanding and no letters of credit outstanding under the Credit Facilities. We believe that we maintain good relationships with our lenders under the Credit Facilities, and we believe that our lenders have the liquidity and capability to perform should the need arise for us to draw on the Credit Facilities.

The indentures governing our outstanding senior unsecured notes contain covenants that place restrictions on certain merger and consolidation transactions, unless we are the surviving entity or the other party assumes the obligations under the indenture, and on the ability to sell or transfer all or substantially all of our assets. In addition, there are restrictions on incurring or assuming certain liens and sale and lease-back transactions. At September 30, 2011, we were in compliance with all our debt covenants. We continually monitor compliance with the covenants under our Credit Facilities and senior notes and, based on our expectations for 2011, expect to remain in compliance during the year.

At September 30, 2011, we had letters of credit of $74 million and performance and tax assessment bonds totaling $295 million supported by surety bonds outstanding. Additionally, certain of our subsidiaries issue, from time to time, guarantees of the temporary import status of rigs or equipment imported into certain countries in which we operate. These guarantees are issued in lieu of payment of custom, value added or similar taxes in those countries.

54

Our long-term debt, including current maturities, was $3.8 billion at September 30, 2011 as compared to $2.8 billion at December 31, 2010. The increase in debt is a result of the issuance of $1.1 billion aggregate principal amount of senior notes and $675 million of additional net borrowings on our Credit Facilities, partially offset by the repayment of $693 million in joint venture credit facilities. For additional information on our long-term debt, see Note 8 to our consolidated financial statements.

In February 2011, we issued through our indirect wholly-owned subsidiary, Noble Holding International Limited (“NHIL”), $1.1 billion aggregate principal amount of senior notes in three separate tranches, comprising $300 million of 3.05% Senior Notes due 2016, $400 million of 4.625% Senior Notes due 2021, and $400 million of 6.05% Senior Notes due 2041. A portion of the net proceeds of approximately $1.09 billion, after expenses, was used to repay the outstanding balance on our revolving credit facility and to repay our portion of outstanding debt under the joint venture credit facilities discussed below.

In the first quarter of 2011, the joint venture credit facilities, which had a combined outstanding balance of $693 million, were repaid in full through contributions to the joint ventures from Noble and Shell. Shell contributed $361 million in equity to fund their portion of the repayment of joint venture credit facilities and related interest rate swaps, which were settled concurrent with the repayment and termination of the joint venture credit facilities.

In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes was 10%, payable semi-annually in arrears and in kind on June 30 and December 31 commencing in June 2011. The purpose of these notes was to provide additional liquidity to the joint ventures in connection with the shipyard construction of the Bully vessels.

In April 2011, the Bully joint venture partners entered into a subscription agreement, pursuant to which each partner was issued equity in each of the Bully joint ventures in exchange for the cancellation of all outstanding joint venture partner notes. The subscription agreement has the effect of converting all joint venture partner notes, including the contribution noted above, into equity of the respective joint venture. The total capital contributed as a result of these agreements was $146 million, which included $142 million in outstanding notes, plus accrued interest. Our portion of the capital contribution, totaling $73 million, was eliminated in consolidation.

New Accounting Pronouncements

In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple-deliverable arrangements. The guidance establishes a selling-price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to multiple-deliverable arrangements and to align the accounting with the underlying economics of the multiple-deliverable transaction. This guidance is effective for fiscal years beginning on or after June 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in the roll-forward activity in Level 3 fair value measurements were deferred until fiscal years beginning after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In December 2010, the FASB issued guidance that requires a public entity to disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable prior annual reporting period. The guidance is effective for annual reporting periods beginning on or after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

55

In May 2011, the FASB issued guidance that modified the wording used to describe many of the requirements in accounting literature for measuring fair value and for disclosing information about fair value measurements. The goal of the amendment is to create consistency between the United States and international accounting standards. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance is not expected to have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In June 2011, the FASB issued guidance that allows an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment no longer allows an entity to show changes to other comprehensive income solely through the statement of equity. For publicly traded entities, the guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance is not expected to have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

56

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the potential for loss from a change in the value of a financial instrument as a result of fluctuations in interest rates, currency exchange rates or equity prices, as further described below.

Interest Rate Risk

We are subject to market risk exposure related to changes in interest rates on borrowings under the Credit Facilities. Interest on borrowings under the Credit Facilities is at an agreed upon percentage point spread over LIBOR, or a base rate stated in the agreements. At September 30, 2011, we had $715 million outstanding under the Credit Facilities. Assuming our current level of debt, a change in LIBOR rates of one percent would increase our interest charges by approximately $7 million per year.

We maintain certain debt instruments at a fixed rate whose fair value will fluctuate based on changes in interest rates and market perceptions of our credit risk. The fair value of our total debt was $3.4 billion and $2.9 billion at September 30, 2011 and December 31, 2010, respectively. The increase was primarily a result of our issuance of $1.1 billion in debt in February 2011 and $675 million of additional net borrowings on the Credit Facilities, partially offset by the repayment of $693 million in joint venture credit facilities coupled with changes in fair value related to changes in interest rates and market perceptions of our credit risk.

Foreign Currency Risk

As a multinational company, we conduct business worldwide. Our functional currency is primarily the U.S. dollar, which is consistent with the oil and gas industry. However, outside the United States, a portion of our expenses are incurred in local currencies. Therefore, when the U.S. dollar weakens (strengthens) in relation to the currencies of the countries in which we operate, our expenses reported in U.S. dollars will increase (decrease).

We are exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that are different than the functional currency. To help manage this potential risk, we periodically enter into derivative instruments to manage our exposure to fluctuations in currency exchange rates, and we may conduct hedging activities in future periods to mitigate such exposure. These contracts are primarily accounted for as cash flow hedges, with the effective portion of changes in the fair value of the hedge recorded on the Consolidated Balance Sheet and in “Accumulated other comprehensive loss” (“AOCL”). Amounts recorded in AOCL are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of the hedged item is recorded directly to earnings. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives.

Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. To limit the potential risk of currency fluctuations, we typically maintain short-term forward contracts settling monthly in their respective local currencies. The forward contract settlements in the remainder of 2011 represent approximately 43 percent of these forecasted local currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. dollars, was approximately $71 million at September 30, 2011. Total unrealized losses related to these forward contracts were $6 million as of September 30, 2011 and were recorded as part of AOCL. A 10 percent change in the exchange rate for the local currencies would change the fair value of these forward contracts by approximately $7 million.

We entered into a firm commitment for the construction of the Noble Globetrotter I drillship. The drillship was constructed in two phases, with the second phase being installation and commissioning of the topside equipment. The contract for this second phase of construction was denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward contracts to purchase Euros. As of September 30, 2011, all amounts related to the forward contracts have settled. We accounted for the forward contracts as fair value hedges, and their fair market value was included in “Other current assets/liabilities” in the Consolidated Balance Sheets. No gain or loss was recognized in the income statement for the three and nine months ended September 30, 2011 or 2010.

57

Market Risk

We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (“Restoration Plan”). The Restoration Plan is a nonqualified, unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment income and, conversely, benefit should phantom investment losses occur. At September 30, 2011, our liability under the Restoration Plan totaled $5 million. We previously purchased investments that closely correlate to the investment elections made by participants in the Restoration Plan in order to mitigate the impact of the phantom investment income and losses on our consolidated financial statements. The value of these investments held for our benefit totaled $4 million at September 30, 2011. A 10 percent change in the fair value of the phantom investments would change our liability by approximately $0.4 million. Any change in the fair value of the phantom investments would be mitigated by a change in the investments held for our benefit.

We also have a U.S. noncontributory defined benefit pension plan that covers certain salaried employees and a U.S. noncontributory defined benefit pension plan that covers certain hourly employees, whose initial date of employment is prior to August 1, 2004 (collectively referred to as our “qualified U.S. plans”). These plans are governed by the Noble Drilling Corporation Retirement Trust. The benefits from these plans are based primarily on years of service and, for the salaried plan, employees’ compensation near retirement. These plans are designed to qualify under the Employee Retirement Income Security Act of 1974 (“ERISA”), and our funding policy is consistent with funding requirements of ERISA and other applicable laws and regulations. We make cash contributions, or utilize credits available to us, for the qualified U.S. plans when required. The benefit amount that can be covered by the qualified U.S. plans is limited under ERISA and the Internal Revenue Code (“IRC”) of 1986. Therefore, we maintain an unfunded, nonqualified excess benefit plan designed to maintain benefits for all employees at the formula level in the qualified U.S. plans.

In addition to the U.S. plans, each of Noble Drilling (Land Support) Limited, Noble Enterprises Limited and Noble Drilling (Nederland) B.V., all indirect, wholly-owned subsidiaries of Noble-Swiss, maintains a pension plan that covers all of its salaried, non-union employees (collectively referred to as our “non-U.S. plans”). Benefits are based on credited service and employees’ compensation near retirement, as defined by the plans.

Changes in market asset values related to the pension plans noted above could have a material impact upon our “Consolidated Statement of Comprehensive Income” and could result in material cash expenditures in future periods.

Item 4. Controls and Procedures

David W. Williams, Chairman, President and Chief Executive Officer of Noble-Swiss, and Dennis J. Lubojacky, Principal Financial Officer and Principal Accounting Officer of Noble-Swiss, have evaluated the disclosure controls and procedures of Noble-Swiss as of the end of the period covered by this report. On the basis of this evaluation, Mr. Williams and Mr. Lubojacky have concluded that Noble-Swiss’ disclosure controls and procedures were effective as of September 30, 2011. Noble-Swiss’ disclosure controls and procedures are designed to ensure that information required to be disclosed by Noble-Swiss in the reports that it files with or submits to the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.

David W. Williams, President and Chief Executive Officer of Noble-Cayman, and Dennis J. Lubojacky, Vice President and Chief Financial Officer of Noble-Cayman, have evaluated the disclosure controls and procedures of Noble-Cayman as of the end of the period covered by this report. On the basis of this evaluation, Mr. Williams and Mr. Lubojacky have concluded that Noble-Cayman’s disclosure controls and procedures were effective as of September 30, 2011. Noble-Cayman’s disclosure controls and procedures are designed to ensure that information required to be disclosed by Noble-Cayman in the reports that it files with or submits to the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.

58

There was no change in either Noble-Swiss’ or Noble-Cayman’s internal control over financial reporting that occurred during the quarter ended September 30, 2011 that has materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of each of Noble-Swiss or Noble-Cayman, respectively.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings is set forth in Note 13 to our consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q and is incorporated herein by reference.

Item 1A. Risk Factors

Risks Relating to Our Business

The risk factor below updates and supplements the risks described under “Risk Factors Relating to Our Business” in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2010, and should be considered together with the risk factors described in that report.

We may have difficulty obtaining or maintaining insurance in the future and our insurance coverage and contractual indemnity rights may not protect us against all of the risks and hazards we face.

We generally identify the operational hazards for which we will procure insurance coverage based on the likelihood of loss, the potential magnitude of loss, the cost of coverage, the requirements of our customer contracts and applicable legal requirements. We do not procure insurance coverage for all of the potential risks and hazards we may face. Furthermore, no assurance can be given that we will be able to obtain insurance against all of the risks and hazards we face or that we will be able to obtain or maintain adequate insurance at rates and with deductibles or retention amounts that we consider commercially reasonable.

Although we maintain what we believe to be an appropriate level of insurance covering hazards and risks we currently encounter during our operations, we do not insure against all possible hazards and risks. Furthermore, our insurance carriers may interpret our insurance policies such that they do not cover losses for which we make claims. Our insurance policies may also have exclusions of coverage for some losses. Uninsured exposures may include expatriate activities prohibited by U.S. laws, radiation hazards, certain loss or damage to property onboard our rigs and losses relating to shore-based terrorist acts or strikes.

In addition, the damage sustained to offshore oil and gas assets as a result of hurricanes in recent years caused the insurance market for U.S. named windstorm perils to deteriorate significantly. Consequently, we currently self-insure U.S. named windstorm coverage for our units deployed in the U.S. Gulf of Mexico. If one or more future significant weather-related events occur in the Gulf of Mexico, or in any other geographic area in which we operate, we may experience increases in insurance costs, additional coverage restrictions or unavailability of certain insurance products.

Under our drilling contracts, liability with respect to personnel and property is customarily assigned on a “knock-for-knock” basis, which means that we and our customers assume liability for our respective personnel and property, irrespective of the fault or negligence of the party indemnified. Although our drilling contracts generally provide for indemnification from our customers for certain liabilities, including liabilities resulting from pollution or contamination originating below the surface of the water, enforcement of these contractual rights to indemnity may be limited by public policy and other considerations and, in any event, may not adequately cover our losses from such incidents. There can also be no assurance that those parties with contractual obligations to indemnify us will necessarily be in a financial position to do so.

59

If a significant accident or other event occurs and is not fully covered by our insurance or a contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows.

As a result of our significant cash flow needs, we may be required to incur additional indebtedness, or delay or cancel discretionary capital expenditures.

Our currently anticipated cash flow needs include the following:

• normal recurring operating expenses;

• committed capital expenditures, including expenditures for newbuild projects currently underway;

• discretionary capital expenditures, including various capital upgrades; and

• payments of return of capital in the form of a reduction of par value of our shares (in lieu of dividends).

In order to fund our capital expenditures, we may need funding beyond the amount available to us from cash generated by our operations, cash on hand and borrowings under our existing bank credit facilities. We may raise such additional capital in a number of ways, including accessing capital markets, obtaining additional lines of credit or disposing of assets. However, we can provide no assurance that any of these options will be available to us on terms acceptable to us or at all.

Our ability to obtain financing or to access the capital markets may be limited by our financial condition at the time of any such financing and the covenants in our existing debt agreements, as well as by adverse market conditions resulting from, among other things, general economic conditions and uncertainties that are beyond our control. Even if we are successful in obtaining additional capital through debt financings, incurring additional indebtedness may significantly increase our interest expense and may reduce our flexibility to respond to changing business and economic conditions or to fund working capital needs, because we will require additional funds to service our outstanding indebtedness.

If we fail to obtain the capital necessary to fund our capital expenditures, we may delay or cancel discretionary capital expenditures, which could have certain adverse consequences including delaying upgrades or equipment purchases that could make the affected rigs less competitive and negatively affect our ability to contract such rigs.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth for the periods indicated certain information with respect to purchases of shares by Noble-Swiss:

						Total Number of		Maximum Number
						Shares Purchased		of Shares that May
	Total Number		Average			as Part of Publicly		Yet Be Purchased
	of Shares		Price Paid			Announced Plans		Under the Plans
Period	Purchased		per Share			or Programs(1)		or Programs(1)
July 2011		17,429	$	36.89	(2)		—		6,769,891
August 2011		728	$	31.23	(2)		—		6,769,891
September 2011		—	$	0			—		6,769,891

(1)	All share purchases made in the open market and were pursuant to the share repurchase program which our Board of Directors authorized and adopted. Our repurchase program has no date of expiration.
(2)	Amounts represent shares surrendered by employees for withholding taxes payable upon the vesting of restricted stock or exercise of stock options.

Item 6. Exhibits

The information required by this Item 6 is set forth in the Index to Exhibits accompanying this Quarterly Report on Form 10-Q and is incorporated herein by reference.

60

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Noble Corporation, a Swiss corporation
/s/ David W. Williams David W. Williams	November 2, 2011 Date
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
/s/ Dennis. J. Lubojacky Dennis J. Lubojacky
(Principal Financial Officer and Principal Accounting Officer)
Noble Corporation, a Cayman Islands company
/s/ David W. Williams David W. Williams	November 2, 2011 Date
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Dennis J. Lubojacky Dennis J. Lubojacky
Vice President and Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

61

Index to Exhibits

Exhibit
Number			Exhibit
	2.1		Agreement and Plan of Merger, Reorganization and Consolidation, dated as of December 19, 2008, among Noble Corporation, a Swiss corporation (“Noble-Swiss”), Noble Corporation, a Cayman Islands company (“Noble-Cayman”), and Noble Cayman Acquisition Ltd. (filed as Exhibit 1.1 to Noble-Cayman’s Current Report on Form 8-K filed on December 22, 2008 and incorporated herein by reference).
	2.2		Amendment No. 1 to Agreement and Plan of Merger, Reorganization and Consolidation, dated as of February 4, 2009, among Noble-Swiss, Noble-Cayman and Noble Cayman Acquisition Ltd. (filed as Exhibit 2.2 to Noble-Cayman’s Current Report on Form 8-K filed on February 4, 2009 and incorporated herein by reference).
	3.1		Articles of Association of Noble-Swiss.
	3.2		By-laws of Noble-Swiss (filed as Exhibit 3.2 to Noble-Swiss’ Current Report on Form 8-K filed on March 27, 2009 and incorporated herein by reference).
	3.3		Memorandum and Articles of Association of Noble-Cayman (filed as Exhibit 3.1 to Noble-Cayman’s Current Report on Form 8-K filed on March 30, 2009 and incorporated herein by reference).
	4.1		Revolving Credit Agreement dated as of February 11, 2011 among Noble Corporation, a Cayman Islands company; the Lenders from time to time parties thereto; Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and an Issuing Bank; Barclays Capital, a division of Barclays Bank PLC, and HSBC Securities (USA) Inc., as Co-Syndication Agents; and Wells Fargo Securities, LLC, Barclays Capital, a division of Barclays Bank PLC, and HSBC Securities (USA) Inc., as Joint Lead Arrangers and Joint Lead Bookrunners (filed as Exhibit 4.1 to Noble-Cayman’s Current Report on Form 8-K filed on February 17, 2011 and incorporated herein by reference).
	4.2		First Amendment to Revolving Credit Agreement dated as of March 11, 2011 among Noble Corporation, a Cayman Islands company; the Lenders from time to time parties thereto; Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and an Issuing Bank; Barclays Capital, a division of Barclays Bank PLC, and HSBC Securities (USA) Inc., as Co-Syndication Agents; and Wells Fargo Securities, LLC, Barclays Capital, a division of Barclays Bank PLC, and HSBC Securities (USA) Inc., as Joint Lead Arrangers and Joint Lead Bookrunners (filed as Exhibit 4.2 to Noble-Cayman’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference).
	4.3		Indenture, dated as of November 21, 2008, between Noble Holding International Limited, as Issuer, and The Bank of New York Mellon Trust Company, N.A., as Trustee (filed as Exhibit 4.1 to Noble-Cayman’s Current Report on Form 8-K filed on November 21, 2008 and incorporated herein by reference).
	4.4		Third Supplemental Indenture, dated as of February 3, 2011, among Noble Holding International Limited, as Issuer, Noble Corporation, as Guarantor, and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to 3.05% Senior Notes due 2016 of Noble Holding International Limited, 4.625% Senior Notes due 2021 of Noble Holding International Limited, and 6.05% Senior Notes due 2041 of Noble Holding International Limited (filed as Exhibit 4.2 to Noble-Cayman’s Current Report on Form 8-K filed on July 26, 2010 and incorporated herein by reference).
	31.1		Certification of David W. Williams pursuant to the U.S. Securities Exchange Act of 1934, as amended, Rule 13a-14(a) or Rule 15d-14(a), for Noble-Swiss and for Noble-Cayman.
	31.2		Certification of Dennis J. Lubojacky pursuant to the U.S. Securities Exchange Act of 1934, as amended, Rule 13a- 14(a) or Rule 15d-14(a), for Noble-Swiss and Noble-Cayman.
	32.1	+	Certification of David W. Williams pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for Noble-Swiss and for Noble-Cayman.
	32.2	+	Certification of Dennis J. Lubojacky pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for Noble-Swiss and Noble-Cayman.
	101	+	Interactive Data File

+ Furnished in accordance with Item 601(b)(32)(ii) of Regulation S-K.

62

EX-3.1

Exhibit 3.1

Effective as of August 9, 2011

Statuten	Articles of Association
der	of
Noble Corporation	Noble Corporation
mit Sitz in Baar	with registered office in Baar
I. Allgemeine Bestimmungen	I. General Provisions
Artikel 1: Firma, Sitz, Dauer	Article 1: Corporate Name, Registered Office, Duration
Unter der Firma	Under the corporate name
Noble Corporation	Noble Corporation
besteht eine Aktiengesellschaft (die “Gesellschaft”) gemäss Artikel 620 ff. des Schweizerischen Obligationenrechts (“OR”) mit Sitz in Baar, Kanton Zug, Schweiz.	a company (the “Company”) exists pursuant to article 620 et seq. of the Swiss Code of Obligations (“CO”) with its registered office in Baar, Canton of Zug, Switzerland.
Artikel 2: Zweck	Article 2: Purpose
1Der Zweck der Gesellschaft ist der Erwerb, das Halten, die Verwaltung, die Verwertung und die Veräusserung von direkten und indirekten Beteiligungen an Unternehmen im In- und Ausland, insbesondere Unternehmen, die in der Erkundung und Förderung von Bodenschätzen, wie der Erbringung von Dienstleistungen im Zusammenhang mit Offshore Bohrungen nach Öl und Naturgas, Dienstleistungen im Zusammenhang mit Arbeitsverträgen für Bohrdienstleistungen tätig sind, Ingenieur- und Beratungsdienstleistungen erbringen und die Finanzierung für solche Zwecke bereitstellen.	1The purpose of the Company is to acquire, hold, manage, exploit and sell, directly or indirectly, participations in Swiss and foreign businesses, in particular, but without limitation, in businesses that are involved in the exploration for and production of natural resources, such as offshore contract drilling of oil and natural gas wells, labor contract drilling services and engineering and consulting services, and to provide financing for this purpose.
2Die Gesellschaft kann Zweigniederlassungen und Tochtergesellschaften im In- und Ausland errichten und Grundstücke und gewerbliche Schutzrechte im In- und Ausland erwerben, halten, verwalten, hypothekarisch belasten und veräussern.	2The Company may set up branch offices and subsidiaries in Switzerland and abroad and may acquire, hold, manage, mortgage and sell real estate and intellectual property rights in Switzerland and abroad.
3Die Gesellschaft kann jede Art von finanzieller Unterstützung für und an Gruppengesellschaften gewähren, einschliesslich der Leistung von Garantien. Die Gesellschaft kann alle kommerziellen Tätigkeiten ausüben, welche direkt oder indirekt mit dem Zweck der Gesellschaft im Zusammenhang stehen, und alle Massnahmen ergreifen, die den Gesellschaftszweck angemessen zu fördern scheinen oder mit diesem im Zusammenhang stehen.	3The Company may provide any kind of financial assistance, including guarantees, to and for group companies. The Company may engage in any type of commercial activity that is directly or indirectly related to its purpose and take any measures it determines appropriate to promote the purpose of the Company, or that are connected with its purpose.

Artikel 3: Dauer	Article 3: Duration
Die Dauer der Gesellschaft ist unbeschränkt.	The duration of the Company is unlimited.
II. Aktienkapital	II. Share Capital
Artikel 4: Anzahl Aktien, Nominalwert, Art	Article 4: Number of Shares, Par Value, Type
Das Aktienkapital der Gesellschaft beträgt Schweizer Franken 942’171’000.00 und ist eingeteilt in 266’150’000 auf den Namen lautende Aktien im Nennwert von Schweizer Franken 3.54 je Aktie (jede Namenaktie nachfolgend bezeichnet als “Aktie” bzw. zusammen die “Aktien”). Das Aktienkapital ist vollständig liberiert.	The share capital of the Company is Swiss Francs 942,171,000.00 and is divided into 266,150,000 fully paid-up registered shares. Each registered share has a par value of Swiss Francs 3.54 (each such registered share hereinafter a “Share” and collectively the “Shares”).
Artikel 5: Anerkennung der Statuten	Article 5: Recognition of Articles
Jede Ausübung von Aktionärsrechten schliesst die Anerkennung der Gesellschaftsstatuten in der jeweils gültigen Fassung in sich ein.	Any exercise of shareholders’ rights automatically comprises recognition of the version of these Articles of Association in force at the time.
Artikel 6: Genehmigtes Aktienkapital	Article 6: Authorized Share Capital
1Der Verwaltungsrat ist ermächtigt, das Aktienkapital jederzeit bis spätestens zum 28. April 2013 im Maximalbetrag von Schweizer Franken 471’085’500.00 durch Ausgabe von höchstens 133’075’000 vollständig zu liberierenden Aktien mit einem Nennwert von je Schweizer Franken 3.54 zu erhöhen. Eine Erhöhung des Aktienkapitals (i) auf dem Weg einer Festübernahme durch eine Bank, ein Bankenkonsortium oder Dritte und eines anschliessenden Angebots an die bisherigen Aktionäre sowie (ii) in Teilbeträgen ist zulässig.	1The Board of Directors is authorized to increase the share capital no later than April 28, 2013, by a maximum amount of Swiss Francs 471,085,500.00 by issuing a maximum of 133,075,000 fully paid-up Shares with a par value of Swiss Francs 3.54 each. An increase of the share capital (i) by means of an offering underwritten by a financial institution, a syndicate of financial institutions or another third party or third parties, followed by an offer to the then-existing shareholders of the Company, and (ii) in partial amounts, shall be permissible.
2Der Verwaltungsrat legt den Zeitpunkt der Ausgabe der neuen Aktien, deren Ausgabepreis, die Art der Liberierung, den Beginn der Dividendenberechtigung, die Bedingungen für die Ausübung der Bezugsrechte sowie die Zuteilung der Bezugsrechte, welche nicht ausgeübt wurden, fest. Nicht ausgeübte Bezugsrechte kann der Verwaltungsrat verfallen lassen, oder er kann diese bzw. die Aktien, für welche Bezugsrechte eingeräumt, aber nicht ausgeübt worden sind, zu Marktkonditionen platzieren oder anderweitig im Interesse der Gesellschaft verwenden.	2The Board of Directors shall determine the time of the issuance, the issue price, the manner in which the new Shares have to be paid-up, the date from which the Shares carry the right to dividends, the conditions for the exercise of the preemptive rights and the allotment of preemptive rights that have not been exercised. The Board of Directors may allow the preemptive rights that have not been exercised to expire, or it may place such rights or Shares, the preemptive rights of which have not been exercised, at market conditions or use them otherwise in the interest of the Company.

2

3Der Verwaltungsrat ist ermächtigt, die Bezugsrechte der Aktionäre aus wichtigen Gründen zu entziehen oder zu beschränken und Dritten zuzuweisen, insbesondere:	3The Board of Directors is authorized to withdraw or limit the preemptive rights of the shareholders and to allot them to third parties for important reasons, including:
(a)  wenn der Ausgabebetrag der neuen Aktien unter Berücksichtigung des Marktpreises festgesetzt wird; oder	(a)  if the issue price of the new Shares is determined by reference to the market price; or
(b)  für die Übernahme von Unternehmen, Unternehmensteilen oder Beteiligungen oder für die Finanzierung oder Refinanzierung solcher Transaktionen oder die Finanzierung von neuen Investitionsvorhaben der Gesellschaft; oder	(b)  for the acquisition of an enterprise, part(s) of an enterprise or participations, or for the financing or refinancing of any of such transactions, or for the financing of new investment plans of the Company; or
(c)  zum Zwecke der Erweiterung des Aktionärskreises in bestimmten Finanz- oder Investoren-Märkten, zur Beteiligung von strategischen Partnern, oder im Zusammenhang mit der Kotierung von neuen Aktien an inländischen oder ausländischen Börsen; oder	(c)  for purposes of broadening the shareholder constituency of the Company in certain financial or investor markets, for purposes of the participation of strategic partners, or in connection with the listing of new Shares on domestic or foreign stock exchanges; or
(d)  für die Einräumung einer Mehrzuteilungsoption (Greenshoe) von bis zu 20% der zu platzierenden oder zu verkaufenden Aktien an die betreffenden Erstkäufer oder Festübernehmer im Rahmen einer Aktienplatzierung oder eines Aktienverkaufs; oder	(d)  for purposes of granting an over-allotment option (Greenshoe) of up to 20% of the total number of Shares in a placement or sale of Shares to the respective initial purchaser(s) or underwriter(s); or

3

(e)  für die Beteiligung von:	(e)  for the participation of:
i.      Mitgliedern des Verwaltungsrates, Mitgliedern der Geschäftsleitung und Mitarbeitern, die für die Gesellschaft oder eine Gruppengesellschaft tätig sind, vorausgesetzt, dass der Gesamtbetrag der unter dieser Bestimmung (e)(i) ausgegebenen Aktien einen Betrag von Schweizer Franken 35’400’000.00, eingeteilt in 10’000’000 vollständig zu liberierende Aktien mit einem Nennwert von je Schweizer Franken 3.54 nicht übersteigt; und	i.      members of the Board of Directors, members of the executive management and employees of the Company or any of its group companies, always provided that the total amount of such Shares to be issued under this clause (e)(i) shall not exceed Swiss Francs 35,400,000.00, divided into 10,000,000 fully paid-up Shares, with a par value of Swiss Francs 3.54 per Share; and
ii.   Vertragspartnern oder Beratern oder anderen Personen, die für die Gesellschaft oder eine Gruppengesellschaft Leistungen erbringen, vorausgesetzt, dass der Gesamtbetrag der unter dieser Bestimmung(e)(ii) ausgegebenen Aktien einen Betrag von Schweizer Franken 3’540’000.00, eingeteilt in 1’000’000 vollständig zu liberierende Aktien mit einem Nennwert von je Schweizer Franken 3.54 nicht übersteigt; oder	ii.   contractors or consultants of the Company or any of its group companies or any other persons performing services for the benefit of the Company or any of its group companies, always provided that the total amount of such Shares to be issued under this clause (e)(ii) shall not exceed Swiss Francs 3,540,000.00, divided into 1,000,000 fully paid-up Shares, with a par value of Swiss Francs 3.54 per Share; or
(f)  wenn ein Aktionär oder eine Gruppe von in gemeinsamer Absprache handelnden Aktionären mehr als 15% des im Handelsregister eingetragenen Aktienkapitals der Gesellschaft (die eigenen Aktien der Gesellschaft davon ausgenommen) auf sich vereinigt hat, ohne den übrigen Aktionären ein vom Verwaltungsrat empfohlenes Übernahmeangebot zu unterbreiten; oder zur Abwehr eines unterbreiteten, angedrohten oder potentiellen Übernahmeangebotes, welches der Verwaltungsrat, nach Konsultation mit einem von ihm beigezogenen unabhängigen Finanzberater, den Aktionären nicht zur Annahme empfohlen hat, weil der Verwaltungsrat das Übernahmeangebot in finanzieller Hinsicht gegenüber den Aktionären nicht als fair beurteilt hat.	(f)  following a shareholder or a group of shareholders acting in concert having accumulated shareholdings in excess of 15% of the share capital registered in the Commercial Register (excluding treasury shares) without having submitted to the other shareholders a takeover offer recommended by the Board of Directors, or for the defense of an actual, threatened or potential takeover bid, in relation to which the Board of Directors, upon consultation with an independent financial adviser retained by it, has not recommended to the shareholders acceptance on the basis that the Board of Directors has not found the takeover bid to be fair to the shareholders from a financial point of view.
4Die neuen Aktien unterliegen den Eintragungsbeschränkungen in das Aktienbuch gemäss Artikel 9 und 10 dieser Statuten.	4The new Shares shall be subject to the limitations for registration in the share register pursuant to Articles 9 and 10 of these Articles of Association.

4

Artikel 7: Bedingtes Aktienkapital	Article 7: Conditional Share Capital
1Das Aktienkapital kann sich durch Ausgabe von höchstens 138’132’846 voll zu liberierenden Aktien im Nennwert von je Schweizer Franken 3.54 um höchstens Schweizer Franken 488’990’274.84 erhöhen durch:	1The share capital may be increased in an amount not to exceed Swiss Francs 488,990,274.84 through the issuance of up to 138,132,846 fully paid-up Shares with a par value of Swiss Francs 3.54 per Share through:
(a) die Ausübung von Wandel-, Tausch-, Options-, Bezugs- oder ähnlichen Rechten auf den Bezug von Aktien (nachfolgend die “Umwandlungsrechte”), welche Dritten oder Aktionären im Zusammenhang mit auf nationalen oder internationalen Kapitalmärkten neu oder bereits begebenen Anleihensobligationen, Optionen, Warrants oder anderen Finanzmarktinstrumenten oder neuen oder bereits bestehenden vertraglichen Verpflichtungen der Gesellschaft, einer ihrer Gruppengesellschaften oder ihrer Rechtsvorgänger eingeräumt werden (nachfolgend zusammen, “die mit Umwandlungsrechten verbundenen Obligationen”); dabei darf der Gesamtbetrag der ausgegebenen Aktien einen Betrag von Schweizer Franken 467’750’274.84, eingeteilt in 132’132’846 vollständig zu liberierende Aktien mit einem Nennwert von je Schweizer Franken 3.54 nicht übersteigen; und/oder	(a)  the exercise of conversion, exchange, option, warrant or similar rights for the subscription of Shares (hereinafter the “Rights”) granted to third parties or shareholders in connection with bonds, options, warrants or other securities newly or already issued in national or international capital markets or new or already existing contractual obligations by or of the Company, one of its group companies, or any of their respective predecessors (hereinafter collectively, the “Rights-Bearing Obligations”); the total amount of Shares that may be issued under such Rights shall not exceed Swiss Francs 467,750,274.84, divided into 132,132,846 fully paid-up Shares with a par value of Swiss Francs 3.54 per Share; and/or
(b)  die Ausgabe von mit Umwandlungsrechten verbundenen Obligationen an:	(b)  the issuance of Rights-Bearing Obligations granted to:
i.    die Mitglieder des Verwaltungsrates, Mitglieder der Geschäftsleitung und Arbeitnehmer, die für die Gesellschaft oder eine Gruppengesellschaft tätig sind; vorausgesetzt, dass der Gesamtbetrag der unter dieser Bestimmung (b)(i) ausgegebenen Aktien einen Betrag von Schweizer Franken 17’700’000.00, eingeteilt in 5’000’000 vollständig zu liberierende Aktien mit einem Nennwert von je Schweizer Franken 3.54 nicht übersteigt; oder	i.    the members of the Board of Directors, members of the executive management and employees of the Company or any of its group companies, always provided that the total amount of such Shares to be issued under this clause (b)(i) shall not exceed Swiss Francs 17,700,000.00, divided into 5,000,000 fully paid-up Shares, with a par value of Swiss Francs 3.54 per Share; or
ii.  Vertragspartner oder Berater oder andere Personen, die für die Gesellschaft oder eine Gruppengesellschaft Leistungen erbringen, vorausgesetzt, dass der Gesamtbetrag der unter dieser Bestimmung (b)(ii) ausgegebenen Aktien einen Betrag von Schweizer Franken 3’540’000.00, eingeteilt in 1’000’000 vollständig zu liberierende Aktien mit einem Nennwert von je Schweizer Franken 3.54 nicht übersteigt.	ii.   contractors or consultants of the Company or any of its group companies or any other persons providing services to the Company or its group companies, always provided that the total amount of such Shares to be issued under this clause (b)(ii) shall not exceed Swiss Francs 3,540,000.00, divided into 1,000,000 fully paid-up Shares, with a par value of Swiss Francs 3.54 per Share.

5

2Der Verwaltungsrat ist ermächtigt, die Vorwegzeichnungsrechte der Aktionäre im Zusammenhang mit der Ausgabe von mit Umwandlungsrechten verbundenen Obligationen durch die Gesellschaft oder eine ihrer Gruppengesellschaften aus wichtigen Gründen zu beschränken oder aufzuheben, falls (1) die Ausgabe zum Zwecke der Übernahme von Unternehmen, Unternehmensteilen, für Beteiligungen oder zum Zwecke der Finanzierung oder Refinanzierung derartiger Transaktionen oder (2) die Ausgabe auf nationalen oder internationalen Finanzmärkten oder im Rahmen einer Privatplatzierung erfolgt.	2The Board of Directors shall be authorized to withdraw or limit the preferential subscription rights in connection with the issuance by the Company, one of its group companies or any of their respective predecessors of Rights-Bearing Obligations for important reasons, including if (1) the issuance is for the acquisition of an enterprise, part(s) of an enterprise or participations, or for the financing or refinancing of any of such transactions or (2) the issuance occurs in national or international capital markets or through a private placement.
3Wird das Vorwegzeichnungsrecht durch den Verwaltungsrat beschränkt oder aufgehoben, gilt Folgendes:	3If the Board of Directors limits or withdraws the preferential subscription right, then the following shall apply:
(a)  Die mit Umwandlungsrechten verbundenen Obligationen sind zu den jeweils marktüblichen Bedingungen auszugeben oder einzugehen; und	(a)  the Rights-Bearing Obligations shall be issued or entered into at market conditions; and
(b)  der Umwandlungs-, Tausch- oder sonstige Ausübungspreis der mit Umwandlungsrechten verbundenen Obligationen ist unter Berücksichtigung jeweils marktüblichen Bedingungen im Zeitpunkt der Ausgabe der mit Umwandlungsrechten verbundenen Obligationen festzusetzen; und	(b)  the conversion, exchange or exercise price of the Rights-Bearing Obligations shall be set at market conditions prevailing at the date on which the Rights-Bearing Obligations are issued; and
(c)  die Umwandlungsrechte sind höchstens während 30 Jahren ab dem jeweiligen Zeitpunkt der Ausgabe der betreffenden mit Umwandlungsrechten verbundenen Obligationen ausübbar.	(c)  the Rights may only be exercised during a maximum period of 30 years from the date of the issuance of the relevant Rights-Bearing Obligation.

6

4Im Zusammenhang mit der Ausübung von Umwandlungsrechten in Aktien, ist das Bezugsrecht der Aktionäre entsprechend den Bedingungen der mit Umwandlungsrechten verbundenen Obligationen ausgeschlossen. Zum Bezug der neuen Aktien, die bei Ausübung der Wandel-, Tausch- oder anderer Ausübungsrechte ausgegeben werden, sind die jeweiligen Inhaber der mit Umwandlungsrechten verbundenen Obligationen berechtigt. Die Bedingungen der mit Umwandlungsrechten verbundenen Obligationen sind unter Berücksichtigung von Artikel 7 Absatz 3 dieser Statuten durch den Verwaltungsrat festzulegen.	4The preemptive rights of the shareholders shall be excluded in connection with the conversion, exchange or exercise of such Rights into Shares pursuant to the terms of the relevant Rights-Bearing Obligation. The then current owners of such Rights-Bearing Obligation shall be entitled to subscribe for the new Shares issued upon conversion, exchange or exercise of the related Right. The conditions of the Rights-Bearing Obligations shall be determined by the Board of Directors, subject to Article 7 para. 3 of these Articles of Association.
5Das Vorwegzeichnungsrecht wie auch das Bezugsrecht der Aktionäre ist bei der Ausgabe von mit Umwandlungsrechten verbundenen Obligationen gemäss Artikel 7 Absatz 1(b) dieser Statuten, oder bei Ausgabe neuer Aktien infolge Ausübung solcher Umwandlungsrechte ausgeschlossen. Die Ausgabe von Aktien oder mit Umwandlungsrechten verbundenen Obligationen an die in Artikel 7 Absatz 1(b) dieser Statuten genannten Personen erfolgt gemäss einem oder mehreren Beteiligungsplänen der Gesellschaft. Die Ausgabe von Aktien an die in Artikel 7 Absatz 1(b) dieser Statuten genannten Personen kann zu einem Preis erfolgen, der unter dem Kurs der Börse liegt, an der die Aktien gehandelt werden, muss aber mindestens zum Nennwert erfolgen.	5The preferential subscription rights and preemptive rights of the shareholders shall be excluded in connection with the issuance of any Rights-Bearing Obligations pursuant to Article 7 para. 1(b) of these Articles of Association or, upon exercise of the Rights, the newly issued Shares. Shares or Rights-Bearing Obligations may be issued to any of the persons referred to in Article 7 para. 1(b) of these Articles of Association in accordance with one or more benefit or incentive plans of the Company. Shares may be issued to any of the persons referred to in Article 7 para. 1(b) of these Articles of Association at a price lower than the current market price quoted on any securities exchange on which the Shares are traded, but at least at par value.
6Die Aktien, welche über die Ausübung von Umwandlungsrechten erworben werden, unterliegen den Eintragungsbeschränkungen in das Aktienbuch gemäss Artikel 9 und 10 dieser Statuten.	6The Shares acquired through the exercise of Rights shall be subject to the limitations for registration in the share register pursuant to Articles 9 and 10 of these Articles of Association.
Artikel 8: Aktienzertifikate	Article 8: Share Certificates
1Ein Aktionär hat nur dann Anspruch auf die Ausgabe eines Aktienzertifikates, wenn der Verwaltungsrat die Ausgabe von Aktienzertifikaten beschliesst. Aktienzertifikate werden in der vom Verwaltungsrat festgelegten Form ausgegeben. Ein Aktionär kann jederzeit eine Bescheinigung über die Anzahl der von ihm gehaltenen Aktien verlangen.	1A shareholder shall be entitled to a Share certificate only if the Board of Directors resolves that Share certificates shall be issued. Share certificates, if any, shall be in such form as the Board of Directors may determine. A shareholder may at any time request an attestation of the number of Shares held by it.
2Die Gesellschaft kann jederzeit auf die Ausgabe und Aushändigung von Zertifikaten verzichten und mit Zustimmung des Aktionärs ausgegebene Urkunden, die bei ihr eingeliefert werden, ersatzlos annullieren.	2The Company may dispense with the obligation to issue and deliver certificates, and may, with the consent of the shareholder, cancel without replacement issued certificates delivered to the Company.

7

3Nicht-verurkundete Aktien und die damit verbundenen Rechte können nur durch schriftliche Zession übertragen werden. Eine solche Zession bedarf zur Wirksamkeit gegenüber der Gesellschaft der Anzeige an die Gesellschaft. Werden nicht-verurkundete Aktien im Auftrag des Aktionärs von einem Transfer Agenten, einer Trust Gesellschaft, Bank oder einer ähnlichen Gesellschaft verwaltet (der “Transfer Agent”), so können diese Aktien und die damit verbundenen Rechte nur unter Mitwirkung des Transfer Agenten übertragen werden.	3Uncertificated Shares and the uncertificated rights deriving from them may only be transferred by written assignment, such assignment being valid only if the Company is notified. If uncertificated Shares are administered on behalf of a shareholder by a transfer agent, trust company, bank or similar entity (the “Transfer Agent”), such Shares and the rights deriving from them may be transferred only with the cooperation of the Transfer Agent.
4Werden nicht-verurkundete Aktien zugunsten von einer anderen Zivilrechtlichen Person als dem Transfer Agenten verpfändet, so ist zur Gültigkeit der Verpfändung eine Anzeige an den Transfer Agenten erforderlich.	4If uncertificated Shares are pledged in favor of any Person other than the Transfer Agent, notification to such Transfer Agent shall be required for the pledge to be effective.
5Für den Fall, dass die Gesellschaft beschliesst, Aktienzertifikate auszugeben und auszuhändigen, müssen die Aktienzertifikate die Unterschrift(en) von einem oder mehreren zeichnungsberechtigten Personen tragen. Mindestens eine dieser Personen muss ein Mitglied des Verwaltungsrates sein. Faksimile-Unterschriften sind erlaubt.	5If the Company decides to issue and deliver Share certificates, the Share certificates shall bear the signature(s) of one or more duly authorized signatories of the Company, at least one of which shall be a member of the Board of Directors. These signatures may be facsimile signatures.
6Die Inhaber von Aktienzertifikaten haben der Gesellschaft den Verlust, Diebstahl, die Zerstörung oder Beschädigung von Zertifikaten unverzüglich zu melden. Die Gesellschaft kann an solche Inhaber gegen Aushändigung des beschädigten Zertifikates, oder gegen ausreichenden Nachweis eines Verlustes, Diebstahls oder der Zerstörung, neue Zertifikate ausgeben. Der Verwaltungsrat, ein von diesem eingesetzter Ausschuss, oder der Transfer Agent können in ihrem freien Ermessen vom Eigentümer des verlorenen, gestohlenen oder zerstörten Zertifikates, oder, im Fall einer Zivilrechtlichen Person, von deren gesetzlichem Vertreter verlangen, dass diese der Gesellschaft einen Schuldschein im Betrag und mit Sicherheiten ausgestaltet wie vom Verwaltungsrat, einem von diesem eingesetzten Ausschuss oder dem Transfer Agent verlangt übergibt, der es erlaubt, die Gesellschaft und den Transfer Agent für sämtliche Ansprüche zu entschädigen, die sich im Zusammenhang mit dem behaupteten Verlust, Diebstahl oder der Zerstörung eines solchen Zertifikates oder mit der Ausgabe eines neuen Zertifikates ergeben können.	6The holder of any Share certificate(s) shall immediately notify the Company of any loss, theft, destruction or mutilation of any such certificate(s); the Company may issue to such holder a new certificate upon the surrender of the mutilated certificate or, in the case of loss, theft or destruction of the certificate, upon satisfactory proof of such loss, theft or destruction; the Board of Directors, or a committee designated thereby, or the Transfer Agent, may, in their discretion, require the owner of the lost, stolen or destroyed certificate, or such Person’s legal representative, to give the Company a bond in such sum and with such surety or sureties as they may direct to indemnify the Company and said Transfer Agent against any claim that may be made on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate.

8

7Der Verwaltungsrat ist berechtigt, zusätzliche Regelungen und Anordnungen zu treffen, die er im Zusammenhang mit der Ausgabe und Übertragung von Zertifikaten über Aktien verschiedener Kategorien als zweckdienlich erachtet. Er kann im Zusammenhang mit der Ausgabe neuer Aktienzertifikate als Ersatz für verloren gegangene, gestohlene, zerstörte oder beschädigte Zertifikate geeignete Regelungen erlassen und Massnahmen ergreifen.	7The Board of Directors may make such additional rules and regulations as it may deem expedient concerning the issue and transfer of certificates representing Shares of each class of the Company and may make such rules and take such action as it may deem expedient concerning the issue of certificates in lieu of certificates claimed to have been lost, destroyed, stolen or mutilated.
8Die Gesellschaft kann in jedem Fall Aktienzertifikate ausgeben, die mehr als eine Aktie verkörpern.	8The Company may in any event issue Share certificates representing more than one Share.
Artikel 9: Aktienbuch, Eintragungsbeschränkungen, Nominees	Article 9: Share Register, Restrictions on Registration, Nominees
1Die Gesellschaft selbst oder ein von ihr beauftragter Dritter führt ein Aktienbuch. Darin werden die Eigentümer und Nutzniesser der Aktien sowie Nominees mit Namen und Vornamen, Adresse und Staatsangehörigkeit (bei Rechtseinheiten mit Firma und Sitz) eingetragen. Ändert eine im Aktienbuch eingetragene Zivilrechtliche Person ihre Adresse, so hat sie dies dem Aktienbuchführer mitzuteilen. Solange dies nicht geschehen ist, gelten alle schriftlichen Mitteilungen der Gesellschaft an die im Aktienbuch eingetragenen Zivilrechtlichen Personen als rechtsgültig an die bisher im Aktienbuch eingetragene Adresse erfolgt.	1The Company shall maintain, itself or through a third party, a share register that lists the surname, first name, address and citizenship (or the name and registered office for legal entities) of the owners and usufructuaries of the Shares as well as the nominees. A Person recorded in the share register shall notify the share registrar of any change in address. Until such notification shall have occurred, all written communication from the Company to Persons of record shall be deemed to have validly been made if sent to the address recorded in the share register.
2Ein Erwerber von Aktien wird auf Gesuch als Aktionär mit Stimmrecht im Aktienbuch eingetragen, vorausgesetzt, dass ein solcher Erwerber auf Aufforderung durch die Gesellschaft ausdrücklich erklärt, die Aktien im eigenen Namen und auf eigene Rechnung erworben zu haben. Der Verwaltungsrat kann Nominees, welche Aktien im eigenen Namen aber auf fremde Rechnung halten, als Aktionäre mit Stimmrecht im Aktienbuch der Gesellschaft eintragen. Der Verwaltungsrat kann Kriterien für die Billigung solcher Nominees als Aktionäre mit Stimmrecht festlegen. Die an den Aktien wirtschaftlich Berechtigten, welche die Aktien über einen Nominee halten, üben Aktionärsrechte mittelbar über den Nominee aus.	2An acquirer of Shares shall be recorded upon request in the share register as a shareholder with voting rights; provided, however, that any such acquirer upon request of the Company expressly declares to have acquired the Shares in its own name and for its own account. The Board of Directors may record nominees who hold Shares in their own name, but for the account of third parties, as shareholders of record in the share register of the Company. The Board of Directors may set forth the relevant requirements for the acceptance of nominees as shareholders with voting rights. Beneficial owners of Shares who hold Shares through a nominee exercise the shareholders’ rights through the intermediation of such nominee.

9

3Sollte der Verwaltungsrat die Eintragung eines Aktionärs als Aktionär mit Stimmrecht ablehnen, muss dem Aktionär diese Ablehnung innerhalb von 20 Tagen nach Erhalt des Eintragungsgesuches mitgeteilt werden. Aktionäre, die nicht als Aktionäre mit Stimmrecht anerkannt wurden, sind als Aktionäre ohne Stimmrecht im Aktienbuch einzutragen.	3If the Board of Directors refuses to register a shareholder as a shareholder with voting rights, it shall notify the shareholder of such refusal within 20 days upon receipt of the application. Non-recognized shareholders shall be entered in the share register as shareholders without voting rights.
4Der Verwaltungsrat kann nach Anhörung des eingetragenen Aktionärs dessen Eintragung im Aktienbuch als Aktionär mit Stimmrecht mit Rückwirkung auf das Datum der Eintragung streichen, wenn diese durch falsche oder irreführende Angaben zustande gekommen ist. Der Betroffene muss über die Streichung sofort informiert werden.	4After hearing the registered shareholder concerned, the Board of Directors may cancel the registration of such shareholder as a shareholder with voting rights in the share register with retroactive effect as of the date of registration if such registration was made based on false or misleading information. The relevant shareholder shall be informed promptly of the cancellation.
5Sofern die Gesellschaft an einer Börse im Ausland kotiert ist, ist es der Gesellschaft mit Bezug auf den Regelungsgegenstand dieses Artikels 9 gestattet, die in der jeweiligen Rechtsordnung geltenden Vorschriften und Normierungen anzuwenden.	5In case the Company is listed on any foreign stock exchange, the Company is permitted to comply with the relevant rules and regulations that are applied in that foreign jurisdiction with regard to the subject of this Article 9.
Artikel 10: Rechtsausübung	Article 10: Exercise of Rights
1Die Gesellschaft anerkennt nur einen Vertreter pro Aktie.	1The Company shall only accept one representative per Share.
2Stimmrechte und die damit verbundenen Rechte können der Gesellschaft gegenüber von einem Aktionär, Nutzniesser der Aktien oder Nominee jeweils nur in dem Umfang ausgeübt werden, wie diese Zivilrechtliche Person mit Stimmrecht im Aktienbuch eingetragen ist.	2Voting rights and rights derived from them may be exercised in relation to the Company by a shareholder, usufructuary of Shares or nominee only to the extent that such Person is recorded in the share register with the right to exercise his voting rights.

10

III. Organe und Organisation der Gesellschaft	III. Corporate Bodies and Organization of the Company
Artikel 11: Gesellschaftsorgane	Article 11: Corporate Bodies
Die Organe der Gesellschaft sind:	The corporate bodies are:
(a)  die Generalversammlung;	(a)  the General Meeting of Shareholders;
(b)  der Verwaltungsrat;	(b)  the Board of Directors;
(c)  die Revisionsstelle; und	(c)  the auditor; and
(d)  zusätzliche, durch den Verwaltungsrat im Rahmen des Organisationsreglements bestellte Gremien.	(d)  additional bodies as may be established by the Board of Directors in accordance with the By-Laws.
A. Generalversammlung	A. General Meeting of the Shareholders
Artikel 12: Befugnisse	Article 12: Authority
1Die Generalversammlung ist das oberste Organ der Gesellschaft.	1The General Meeting of Shareholders is the supreme corporate body of the Company.
2Der Generalversammlung stehen die folgenden unübertragbaren Befugnisse zu:	2The following powers shall be vested exclusively in the General Meeting of Shareholders:
(a)  die Festsetzung und Änderung der Statuten;	(a)  the adoption and amendment of these Articles of Association;
(b)  die Wahl der Mitglieder des Verwaltungsrates und der Revisionsstelle;	(b)  the election of the members of the Board of Directors and the auditor;
(c)  die Genehmigung des Jahresberichtes und der Konzernrechnung;	(c)  the approval of the annual report and the consolidated financial statements of the Company;
(d)  die Genehmigung der Jahresrechnung der Gesellschaft, sowie die Beschlussfassung über die Verwendung des Bilanzgewinnes, insbesondere die Festsetzung der Dividende;	(d)  the approval of the annual statutory financial statements of the Company and the resolution on the allocation of profit shown on the annual statutory balance sheet, in particular the determination of any dividend;
(e)  die Entlastung der Mitglieder des Verwaltungsrates und der übrigen mit der Geschäftsführung betrauten Zivilrechtlichen Personen;	(e)  the grant of a release from liability to the members of the Board of Directors and the Persons entrusted with management;

11

(f)  die Genehmigung des Zusammenschlusses mit einem Nahestehenden Aktionär nach Artikel 21 Absatz 4 (die jeweilige Definition findet sich unter Artikel 35 dieser Statuten); und	(f)  the approval pursuant to Article 21 para. 4 of a Business Combination with an Interested Shareholder (as each such term is defined in Article 35 of these Articles of Association); and
(g)  die Beschlussfassung über Gegenstände, die der Generalversammlung durch das Gesetz oder die Statuten vorbehalten sind, oder die vom Verwaltungsrat gemäss Artikel 716a OR der Generalversammlung zur Beschlussfassung vorgelegt werden.	(g)  the adoption of resolutions on matters that are reserved to the General Meeting of Shareholders by law, these Articles of Association or, subject to article 716a CO, that are submitted to the General Meeting of Shareholders by the Board of Directors.
Artikel 13: Ordentliche Generalversammlung	Article 13: Annual General Meeting
1Die ordentliche Generalversammlung findet alljährlich innerhalb von sechs Monaten nach Schluss des Geschäftsjahres statt. Spätestens zwanzig Kalendertage vor der ordentlichen Generalversammlung sind der Geschäftsbericht und der Revisionsbericht den Aktionären am Gesellschaftssitz zur Einsicht aufzulegen. Jeder Aktionär kann verlangen, dass ihm unverzüglich eine Ausfertigung des Geschäftsberichts und des Revisionsberichts ohne Kostenfolge zugesandt wird. Die im Aktienbuch eingetragenen Aktionäre werden über die Verfügbarkeit des Geschäftsberichts und des Revisionsberichts durch schriftliche Mitteilung unterrichtet. In der Einladung zur ordentlichen Generalversammlung wird auf die Verfügbarkeit des Geschäftsberichts und des Revisionsberichts hingewiesen.	1The Annual General Meeting shall be held each year within six months after the close of the fiscal year of the Company. The annual report and the auditor’s report shall be made available for inspection by the shareholders at the registered office of the Company no later than twenty calendar days prior to the Annual General Meeting. Each shareholder is entitled to request prompt delivery of a copy of the annual report and the auditor’s report free of charge. Shareholders of record will be notified of the availability of the annual report and the auditor’s report in writing. Reference to the availability of the annual report and the auditor’s report shall be included in the notice of the Annual General Meeting.
2Die ordentliche Generalversammlung kann im Ausland durchgeführt werden.	2The Annual General Meeting may be held outside of Switzerland.
Artikel 14: Ausserordentliche Generalversammlung	Article 14: Extraordinary General Meeting
1Ausserordentliche Generalversammlungen finden in den vom Gesetz vorgesehenen Fällen statt, insbesondere, wenn der Verwaltungsrat, der Verwaltungsratspräsident, der Chief Executive Officer oder der Company President es für notwendig oder angezeigt erachten oder die Revisionsstelle dies verlangt.	1An Extraordinary General Meeting shall be held in the circumstances provided by law, in particular when deemed necessary or appropriate by the Board of Directors, the Chairman of the Board, the Chief Executive Officer, or the President, or if so requested by the auditor.

12

2Ausserdem muss der Verwaltungsrat, der Verwaltungsratspräsident, der Chief Executive Officer oder der Company President eine ausserordentliche Generalversammlung einberufen, wenn es eine Generalversammlung so beschliesst oder wenn ein oder mehrere Aktionäre, welche zusammen mindestens zehn Prozent des im Handelsregister eingetragenen Aktienkapitals vertreten, dies verlangen, und unter der Voraussetzung, dass folgende Angaben gemacht werden:	2An Extraordinary General Meeting shall further be convened by the Board of Directors, the Chairman of the Board, the Chief Executive Officer, or the President, upon resolution of a General Meeting of Shareholders or if so requested by one or more shareholders who, in the aggregate, represent at least one-tenth of the share capital recorded in the Commercial Register, and who submit:
(a)  (1) schriftliches, von dem Aktionär bzw. den Aktionären unterzeichnetes und die Verhandlungsgegenstände bezeichnendes Begehren, (2) die Anträge sowie (3) der Nachweis der erforderlichen Anzahl der im Aktienbuch eingetragenen Aktien; und	(a)  (1) a written request signed by such shareholder(s) that specifies the item(s) to be included on the agenda, (2) the respective proposals of the shareholders and (3) evidence of the required shareholdings recorded in the share register; and
(b)  weitere Informationen, die von der Gesellschaft nach den Regeln der U.S. Securities and Exchange Commission (die “SEC”) in einem sog. Proxy Statement aufgenommen und veröffentlicht werden müssen.	(b)  such other information as would be required to be included in a proxy statement pursuant to the rules of the U.S. Securities and Exchange Commission (the “SEC”).
3Die ausserordentliche Generalversammlung kann im Ausland durchgeführt werden.	3An Extraordinary General Meeting may be held outside of Switzerland.
Artikel 15: Einberufung der Generalversammlung	Article 15: Notice of Shareholders’ Meetings
1Die ordentliche und die ausserordentliche Generalversammlung (einzeln und zusammen die “Generalversammlung”) wird durch den Verwaltungsrat, nötigenfalls durch die Revisionsstelle, spätestens 20 Kalendertage vor dem Tag der Generalversammlung einberufen.	1Notice of an Annual General Meeting or an Extraordinary General Meeting (individually and collectively the “General Meeting of Shareholders”) shall be given by the Board of Directors or, if necessary, by the auditor, at least twenty calendar days before the General Meeting of Shareholders is to take place.
2Die auf Verlangen eines Aktionärs durchzuführende ausserordentliche Generalversammlung ist durch den Verwaltungsrat innerhalb eines angemessenen Zeitraums seit Empfang des Begehrens auf Einberufung einer ausserordentlichen Generalversammlung einzuberufen.	2In case of an Extraordinary General Meeting requested by a shareholder, the Board of Directors shall call such Extraordinary General Meeting within a reasonable time after such request.

13

3Die Einberufung erfolgt durch einmalige Bekanntmachung im Publikationsorgan der Gesellschaft gemäss Artikel 34 dieser Statuten. Für die Einhaltung der Einberufungsfrist ist der Tag der Veröffentlichung der Einberufung im Publikationsorgan massgeblich, wobei der Tag der Veröffentlichung nicht mitzuzählen ist. Die im Aktienbuch eingetragenen Aktionäre können zudem auf dem ordentlichen Postweg über die Generalversammlung informiert werden.	3Notice of the General Meeting of Shareholders shall be given by way of a single announcement in the official means of publication of the Company pursuant to Article 34 of these Articles of Association. The notice period shall be deemed to have been observed if notice of the General Meeting of Shareholders is published in such official means of publication, it being understood that the date of publication is not to be included for purposes of computing the notice period. Shareholders of record may in addition be informed of the General Meeting of Shareholders by ordinary mail.
4Die Einberufung enthält die Verhandlungsgegenstände sowie die Anträge des Verwaltungsrates und des oder der Aktionäre, welche die Durchführung einer Generalversammlung oder die Traktandierung eines Verhandlungsgegenstandes verlangt haben, und bei Wahlen die Namen des oder der zur Wahl vorgeschlagenen Kandidaten.	4The notice of a General Meeting of Shareholders shall specify the items on the agenda and the proposals of the Board of Directors and/or the shareholder(s) who requested that a General Meeting of Shareholders be held or an item be included on the agenda, and, in the event of elections, the name(s) of the candidate(s) that has or have been put on the ballot for election.
Artikel 16: Traktandierung; Nominierungen	Article 16: Agenda; Nominations
1Jeder Aktionär kann die Traktandierung eines Verhandlungsgegenstandes verlangen.	1Any shareholder may request that an item be included on the agenda of a General Meeting of Shareholders.

14

2Das Traktandierungsbegehren muss in schriftlicher Fassung spätestens 60, frühestens aber 120 Kalendertage vor der Generalversammlung an den Sekretär der Gesellschaft zugestellt werden. Jedes Gesuch muss den Namen und die Adresse des antragstellenden Aktionärs (so, wie er in den Gesellschaftsunterlagen aufgeführt ist), sowie eine eindeutige und präzise Formulierung des Verhandlungsgegenstandes enthalten. Darüberhinaus ist ein Nachweis über die erforderliche, im Aktienbuch der Gesellschaft eingetragene Aktionärseigenschaft beizulegen. Sofern der Vorsitzende der Generalversammlung feststellt, dass ein Verhandlungsgegenstand nicht ordnungsgemäss traktandiert wurde, so hat er diesen Verhandlungsgegenstand für nicht ordnungsgemäss traktandiert zu erklären und den Gegenstand von der Verhandlung auszuschliessen.

2In order for an item to be included on the agenda for a General Meeting of Shareholders, a written request must be sent to the Secretary of the Company not less than 60 nor more than 120 calendar days prior to the meeting. Each such request must specify the name and address of the shareholder who requested it (as the same appear in the Company’s records), and a clear and concise statement of the agenda item, and shall be accompanied by evidence of the required shareholdings recorded in the share register. If the chairman of a General Meeting of Shareholders determines that any proposed business has not been properly brought before the meeting, he shall declare such business out of order; and such business shall not be conducted at the meeting.

3Der Verwaltungsrat oder jeder zu der Wahl von Verwaltungsräten berechtigte Aktionär darf Nominierungen für die Wahl des Verwaltungsrates der Gesellschaft treffen. Jeder Aktionär, der im Rahmen der Generalversammlung zu der Wahl von Verwaltungsräten berechtigt ist, darf Personen für die Wahl des Verwaltungsrates nur dann vorschlagen, wenn die Absicht einer solchen Nominierung dem Sekretär der Gesellschaft in schriftlicher Form durch persönliches Überbringen, Brief, im Voraus bezahltes Porto, und unter den folgenden Voraussetzungen angekündigt wurde: (a) 90 Tage vor Durchführung einer ordentlichen Generalversammlung, und (b) bei ausserordentlichen Generalversammlungen, bis spätestens zum Ende der ordentlichen Bürostunden am siebenten Tag nach der erstmaligen Bekanntgabe einer derartigen Versammlung an die Aktionäre. Jeder der Wahlvorschläge muss inhaltlich folgenden Anforderungen genügen: (i) Name und Adresse des Aktionärs, der ein oder mehrere Personen für die Wahl vorschlägt; (ii) ein Nachweis, dass der Aktionär die Anteile hält, die ihn zu einer Wahl berechtigen und dass er beabsichtigt, an der Versammlung persönlich oder durch einen Vertreter teilzunehmen, um die vorgeschlagene Person zu nominieren; (iii) die Benennung aller Vereinbarungen und Übereinkünfte zwischen dem Aktionär und der von diesem nominierten Person und jedem Dritten (namentliche Nennung erforderlich), gemäss welchem eine Nominierung durch den Aktionär erfolgen soll; (iv) weitere Informationen über jede durch einen Aktionär nominierte Person, die von der Gesellschaft nach den Proxy Regeln der SEC in einem sog. Proxy Statement aufgenommen werden müssen, hätte der Verwaltungsrat die jeweilige nominierte Person nominiert oder nominieren wollen; und (v) die Erklärung der nominierten Person das Mandat als Verwaltungsrat anzunehmen für den Fall, dass die nominierte Person in diese Funktion gewählt wird. Der Vorsitzende kann, bei Nichteinhaltung der in diesem Absatz umschriebenen Vorgehensweise, die Anerkennung einer Nominierung verweigern.

3Nominations for the election of directors of the Company may be made by the Board of Directors or by any shareholder entitled to vote for the election of directors. Any shareholder entitled to vote for the election of directors at a General Meeting of Shareholders may nominate persons for election as directors only if written notice of such shareholder’s intent to make such nomination is given, either by personal delivery or by mail, postage prepaid, to the Secretary of the Company not later than (a) with respect to an election to be held at an Annual General Meeting of Shareholders, 90 days in advance of such meeting, and (b) with respect to an election to be held at an Extraordinary General Meeting of Shareholders for the election of directors, the close of business on the seventh day following the date on which notice of such meeting is first given to shareholders. Each such notice shall set forth: (i) the name and address of the shareholder who intends to make the nomination of the person or persons to be nominated; (ii) a representation that the shareholder is a holder of record of Shares entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice; (iii) a description of all arrangements or understandings between the shareholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the shareholder; (iv) such other information regarding each nominee proposed by such shareholders as would have been required to be included in a proxy statement filed pursuant to the proxy rules of the SEC had each nominee been nominated, or intended to be nominated, by the Board of Directors; and (v) the consent of each nominee to serve as a director of the Company if so elected. The chairman of the meeting may refuse to acknowledge the nomination of any person not made in compliance with the foregoing procedure.

15

4Zu nicht gehörig angekündigten Verhandlungsgegenständen können keine Beschlüsse der Generalversammlung gefasst werden. Hiervon ausgenommen ist jedoch der Beschluss über den in einer Generalversammlung gestellten Antrag auf:	4No resolution may be passed at a General Meeting of Shareholders concerning an agenda item in relation to which due notice was not given, except for proposals made during a General Meeting of Shareholders to:
(a) Einberufung einer ausserordentlichen Generalversammlung; sowie	(a)  convene an Extraordinary General Meeting; or
(b) Durchführung einer Sonderprüfung gemäss Artikel 697a OR.	(b)  initiate a special investigation in accordance with article 697a CO.
5Zur Stellung von Anträgen im Rahmen der Verhandlungsgegenstände und zu Verhandlungen ohne Beschlussfassung bedarf es keiner vorgängigen Ankündigung.	5No prior notice is required to bring motions related to items already on the agenda or for the discussion of matters on which no resolution is to be taken.
Artikel 17: Vorsitz der Generalversammlung, Protokoll, Stimmenzähler	Article 17: Acting Chair, Minutes, Vote Counters
1An der Generalversammlung führt der Verwaltungsratspräsident oder, bei dessen Verhinderung, der Vizepräsident oder eine andere vom Verwaltungsrat bezeichnete Person den Vorsitz.	1At the General Meeting of Shareholders the Chairman of the Board of Directors or, in his absence, the Vice-Chairman or any other person designated by the Board of Directors, shall take the chair.
2Der Vorsitzende der Generalversammlung bestimmt den Protokollführer und die Stimmenzähler, die alle nicht Aktionäre sein müssen. Das Protokoll ist vom Vorsitzenden und vom Protokollführer zu unterzeichnen.	2The acting chair of the General Meeting of Shareholders shall appoint the secretary and the vote counters, none of whom need be shareholders. The minutes of the General Meeting of Shareholders shall be signed by the acting chair and the secretary.

16

3Dem Vorsitzenden der Generalversammlung stehen die notwendigen und erforderlichen Befugnisse und Kompetenzen für eine ordnungsgemässe Durchführung der Generalversammlung zu.	3The acting chair of the General Meeting of Shareholders shall have all powers and authority necessary and appropriate to ensure the orderly conduct of the General Meeting of Shareholders.
Artikel 18: Recht auf Teilnahme, Vertretung der Aktionäre	Article 18: Right to Participation and Representation
Sofern die Statuten es vorsehen, ist jeder an einem bestimmten, durch den Verwaltungsrat vorgegebenen Stichtag, im Aktienbuch eingetragene Aktionär berechtigt, an der Generalversammlung teilzunehmen und an der Beschlussfassung mitzuwirken. Ein Aktionär kann sich an der Generalversammlung vertreten lassen, wobei der Vertreter nicht Aktionär sein muss. Der Verwaltungsrat kann die Einzelheiten über die Vertretung und Teilnahme an der Generalversammlung in Verfahrensvorschriften regeln.	Except as provided in these Articles of Association, each shareholder recorded in the share register on a specific qualifying day which may be designated by the Board of Directors shall be entitled to participate at the General Meeting of Shareholders and in any vote taken. The shareholders may be represented by proxies who need not be shareholders. The Board of Directors may issue the particulars of the right to representation and participation at the General Meeting of Shareholders in procedural rules.
Artikel 19: Stimmrechte	Article 19: Voting Rights
1Jede Aktie berechtigt zu einer Stimme. Das Stimmrecht untersteht den Bedingungen von Artikel 9 und 10 dieser Statuten.	1Each Share shall convey the right to cast one vote. The right to vote is subject to the conditions of Articles 9 and 10 of these Articles of Association.
Artikel 20: Beschlüsse und Wahlen: Mehrheitserfordernisse	Article 20: Resolutions and Elections: Voting Requirements
1Die Generalversammlung fasst Beschlüsse und entscheidet Wahlen, soweit das Gesetz oder diese Statuten es nicht anders bestimmen, mit der relativen Mehrheit der abgegebenen Aktienstimmen (wobei Enthaltungen, Broker Nonvotes, leere oder ungültige Stimmen für die Bestimmung des Mehrs nicht berücksichtigt werden).	1Unless otherwise required by Swiss statutory law or these Articles of Association, the General Meeting of Shareholders shall take resolutions and decide elections upon a relative majority of the votes cast at the General Meeting of Shareholders (whereby abstentions, broker nonvotes, blank or invalid ballots shall be disregarded for purposes of establishing the majority).
2Die Generalversammlung entscheidet über die Wahl von Mitgliedern des Verwaltungsrates nach der Mehrheit der abgegebenen Stimmen. Danach gilt diejenige Person, welche die grösste Zahl der abgegebenen Aktienstimmen für einen Verwaltungsratssitz erhält, als für den betreffenden Verwaltungsratssitz gewählt. Aktienstimmen gegen einen Kandidaten, Stimmenthaltungen, Broker Nonvotes, leere oder ungültige Stimmen haben für die Zwecke dieses Artikels 20 Absatz 2 keine Auswirkungen auf die Wahl von Mitgliedern des Verwaltungsrates.	2The General Meeting of Shareholders shall decide elections of members of the Board of Directors upon a plurality of the votes cast at the General Meeting of Shareholders. A plurality means that the individual who receives the largest number of votes for a board seat is elected to that board seat. Votes against any candidate, abstentions, broker nonvotes, blank or invalid ballots shall have no impact on the election of members of the Board of Directors under this Article 20 para. 2.

17

3Für die Abwahl von amtierenden Mitgliedern des Verwaltungsrates gelten das Mehrheitserfordernis gemäss Artikel 21 Absatz 2(e) sowie das Präsenzquorum von Artikel 22 Absatz 2(a).	3For the removal of a serving member of the Board of Directors, the voting requirement set forth in Article 21 para. 2(e) and the presence quorum set forth in Article 22 para. 2(a) shall apply.
4Die Abstimmungen und Wahlen erfolgen offen, es sei denn, dass die Generalversammlung schriftliche Abstimmung respektive Wahl beschliesst oder der Vorsitzende der Generalversammlung dies anordnet. Der Vorsitzende der Generalversammlung kann Abstimmungen und Wahlen auch mittels elektronischem Verfahren durchführen lassen. Elektronische Abstimmungen und Wahlen sind schriftlichen Abstimmen und Wahlen gleichgestellt.	4Resolutions and elections shall be decided by a show of hands, unless a written ballot is resolved by the General Meeting of Shareholders or is ordered by the acting chair of the General Meeting of Shareholders. The acting chair may also hold resolutions and elections by use of an electronic voting system. Electronic resolutions and elections shall be considered equal to resolutions and elections taken by way of a written ballot.
5Der Vorsitzende der Generalversammlung kann eine offene Wahl oder Abstimmung immer durch eine schriftliche oder elektronische wiederholen lassen, sofern seiner Ansicht nach Zweifel am Abstimmungsergebnis bestehen. In diesem Fall gilt die vorausgegangene offene Wahl oder Abstimmung als nicht erfolgt.	5The chair of the General Meeting of Shareholders may at any time order that an election or resolution decided by a show of hands be repeated by way of a written or electronic ballot if he considers the vote to be in doubt. The resolution or election previously held by a show of hands shall then be deemed to have not taken place.
Artikel 21: Besonderes Stimmen Quorum	Article 21: Special Vote
1Ein Beschluss der Generalversammlung, der mindestens zwei Drittel der an der Generalversammlung vertretenen Aktien sowie die absolute Mehrheit des vertretenen Aktiennennwertes, auf sich vereinigt, ist erforderlich für:	1The approval of at least two-thirds of the Shares represented at a General Meeting of Shareholders and the absolute majority of the par value of such Shares, shall be required for resolutions with respect to:
(a)  Die Ergänzung oder Änderung des Gesellschaftszweckes gemäss Artikel 2 dieser Statuten;	(a)  the amendment or modification of the purpose of the Company as described in Article 2 of these Articles of Association;
(b)  die Einführung von Stimmrechtsaktien;	(b)  the creation of shares with voting power greater than the Shares;
(c)  die Beschränkung der Übertragbarkeit der Aktien und die Änderung oder Aufhebung einer solche Beschränkung;	(c)  the restriction on the transferability of Shares and the modification or removal of such restriction;
(d)  eine genehmigte oder bedingte Kapitalerhöhung;	(d)  an increase in the amount of the authorized or conditional share capital;

18

(e)  die Kapitalerhöhung (i) aus Eigenkapital, (ii) gegen Sacheinlage oder zwecks Sachübernahme oder (iii) die Gewährung von besonderen Vorteilen;	(e)  an increase in share capital through (i) the conversion of capital surplus, (ii) contribution in kind or for purposes of an acquisition of assets, or (iii) the granting of special privileges upon a capital increase;
(f)  die Einschränkung oder Aufhebung des Bezugsrechts oder des Vorwegzeichnungsrechtes;	(f)  the limitation on or withdrawal of preemptive or preferential subscription rights;
(g)  die Verlegung des Sitzes der Gesellschaft;	(g)  the relocation of the registered office of the Company;
(h)  die Fusion im Wege der Absorption einer anderen Gesellschaft vorbehaltlich der zusätzlichen Voraussetzungen unter Artikel 21 Absatz 4 dieser Statuten und im Rahmen der gesetzlichen Vorgaben schweizerischen Rechts;	(h)  subject to Article 21 para. 4 of these Articles of Association and as far as required by Swiss statutory law, the merger by way of absorption of another company;
(i) die Auflösung der Gesellschaft; und	(i)   the dissolution of the Company; and
(j) jede Änderung dieses Artikels 21 Absatz 1.	(j)  any change to this Article 21 para. 1.
2Ein Beschluss der Generalversammlung, der mindestens zwei Drittel der Gesamtstimmen auf sich vereinigt ist erforderlich für:	2The approval of at least two-thirds of the Total Voting Shares shall be required for:
(a) Jede Änderung von Artikel 16 dieser Statuten;	(a)  any change to Article 16 of these Articles of Association;
(b)  jede Änderung von Artikel 20 dieser Statuten;	(b)  any change to Article 20 of these Articles of Association;
(c) jede Änderung dieses Artikels 21 Absatz 2;	(c)  any change to this Article 21 para. 2;
(d) jede Änderung von Artikel 22, 23 oder 24 dieser Statuten; und	(d)  any change to Article 22, 23 or 24 of these Articles of Association; and
(e) die Abwahl eines amtierenden Mitglieds des Verwaltungsrates.	(e)  a resolution with respect to the removal of a serving member of the Board of Directors.

19

3Ein Beschluss der Generalversammlung, der mindestens zwei Drittel der abgegebenen Stimmen auf sich vereinigt, ist erforderlich für:	3The approval of at least two-thirds of the Shares voted at a General Meeting of Shareholders shall be required for:
(a)  jede Änderung dieses Artikels 21 Absatz 3; und	(a)  any change to this Article 21 para. 3; and
(b)  jede Änderung von Artikel 25 dieser Statuten.	(b)  any change to Article 25 of these Articles of Association.
4Zusätzlich zu etwaigen benötigten Zustimmungserfordernissen ist ein Beschluss der Generalversammlung mit einer Mehrheit, die mindestens die Summe von: (i) zwei Drittel der Gesamtstimmen; zuzüglich (ii) einer Anzahl von stimmberechtigten Aktien, die einem Drittel der von Nahestehenden Aktionären (wie in Artikel 35 dieser Statuten definiert) gehaltenen Aktienstimmen entspricht, auf sich vereinigt, erforderlich für (1) jeden Zusammenschluss der Gesellschaft mit einem Nahestehenden Aktionär innerhalb eines Zeitraumes von drei Jahren, seitdem diese Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde, (2) jede Änderung von Artikel 12(f) dieser Statuten oder (3) jede Änderung von diesem Artikel 21 Absatz 4 dieser Statuten (einschliesslich der dazugehörigen Definitionen in Artikel 35 dieser Statuten). Das im vorangehenden Satz aufgestellte Zustimmungserfordernis ist jedoch nicht anwendbar falls:	4In addition to any approval that may be required under applicable law, the approval of a majority at least equal to the sum of: (i) two-thirds of the Total Voting Shares; plus (ii) a number of Shares entitled to vote that is equal to one-third of the number of Shares entitled to vote held by Interested Shareholders (as defined in Article 35 of these Articles of Association), shall be required for the Company to (1) engage in any Business Combination with an Interested Shareholder for a period of three years following the time that such Person became an Interested Shareholder, (2) amend Article 12(f) of these Articles of Association or (3) amend this Article 21 para. 4 of these Articles of Association (including any definitions pertaining thereto as set forth in Article 35 of these Articles of Association); provided, however, that the approval requirement in the preceding sentence shall not apply if:
(a)  der Verwaltungsrat, bevor diese Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde, entweder den Zusammenschluss oder eine andere Transaktion genehmigte, in Folge derer diese Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde;	(a)  prior to such time that such Person became an Interested Shareholder, the Board of Directors approved either the Business Combination or the transaction which resulted in such Person becoming an Interested Shareholder;

20

(b) nach Vollzug der Transaktion, in Folge derer diese Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde, der Nahestehende Aktionär unmittelbar vor Beginn der betreffenden Transaktion mindestens 85% der Gesamtstimmen hielt, wobei zur Bestimmung der Anzahl der allgemein stimmberechtigten Aktien (nicht jedoch zur Bestimmung der durch den Nahestehenden Aktionär gehaltenen Aktien) folgende Aktien nicht zu berücksichtigen sind: Aktien, (x) welche von Zivilrechtlichen Personen gehalten werden, die sowohl Verwaltungsrats- wie auch Geschäftsleitungsmitglieder sind, und (y) welche für Mitarbeiteraktienpläne reserviert sind, soweit die diesen Plänen unterworfenen Mitarbeiter nicht das Recht haben, unter Wahrung der Vertraulichkeit darüber zu entscheiden, ob Aktien, die dem betreffenden Mitarbeiteraktienplan unterstehen, in einem Übernahme- oder Austauschangebot angedient werden sollen oder nicht;

(b)  upon consummation of the transaction which resulted in such Person becoming an Interested Shareholder, the Interested Shareholder Owned at least 85% of the Total Voting Shares at the time the transaction commenced, excluding for purposes of determining such number of Shares then in issue (but not for purposes of determining the Shares Owned by the Interested Shareholder), those Shares Owned (x) by Persons who are both members of the Board of Directors and officers of the Company and (y) by employee share plans in which employee participants do not have the right to determine confidentially whether Shares held subject to the plan will be tendered in a tender or exchange offer;

(c)  eine Zivilrechtliche Person unbeabsichtigterweise zu einem Nahestehenden Aktionär wird und (x) das Eigentum an einer genügenden Anzahl Aktien sobald als möglich veräussert, so dass sie nicht mehr länger als Nahestehender Aktionär qualifiziert und (y) zu keinem Zeitpunkt während der drei dem Zusammenschluss zwischen der Gesellschaft und dieser Zivilrechtlichen Person unmittelbar vorangehenden Jahre als Nahestehender Aktionär gegolten hätte, ausgenommen aufgrund des unbeabsichtigten Erwerbs der Eigentümerschaft.

(c)  a Person becomes an Interested Shareholder inadvertently and (x) as soon as practicable divests itself of Ownership of sufficient Shares so that such Person ceases to be an Interested Shareholder and (y) would not, at any time within the three-year period immediately prior to a Business Combination between the Company and such Person, have been an Interested Shareholder but for the inadvertent acquisition of Ownership; or

21

(d)  der Zusammenschluss vor Vollzug oder Verzicht auf und nach öffentlicher Bekanntgabe oder der nach diesem Abschnitt erforderlichen Mitteilung (was auch immer früher erfolgt) eine(r) beabsichtigten Transaktion vorgeschlagen wird, welche (i) eine der Transaktionen im Sinne des zweiten Satzes dieses Artikels 21 Absatz 4(d) darstellt; (ii) mit oder von einer Zivilrechtlichen Person abgeschlossen wird, die entweder während den letzten drei Jahren kein Nahestehender Aktionär war oder die mit der Genehmigung des Verwaltungsrates zu einem Nahestehenden Aktionär wurde; und (iii) von einer Mehrheit der dannzumal amtierenden Mitglieder des Verwaltungsrates (aber mindestens einem) genehmigt oder nicht abgelehnt wird, die entweder bereits Verwaltungsratsmitglieder waren, bevor in den drei vorangehenden Jahren irgendeine Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde, oder die auf Empfehlung einer Mehrheit solcher Verwaltungsratsmitglieder als deren Nachfolger zur Wahl vorgeschlagen wurden. Die im vorangehenden Satz erwähnten beabsichtigen Transaktionen sind auf folgende beschränkt: (x) eine Fusion oder eine andere Form des Zusammenschlusses der Gesellschaft (mit Ausnahme einer Fusion, welche keine Genehmigung durch die Generalversammlung der Gesellschaft voraussetzt); (y) ein Verkauf, eine Vermietung oder eine Verpachtung ein Tausch, hypothekarische Belastung, Verpfändung, Übertragung oder anderweitige Verfügung (ob in einer oder mehreren Transaktionen), von Vermögenswerten der Gesellschaft oder einer direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird (jedoch nicht an eine direkt oder indirekt zu 100% gehaltene Konzerngesellschaft oder an die Gesellschaft), soweit diese Vermögenswerte einen Marktwert von 50% oder mehr entweder des auf konsolidierter Basis aggregierten Marktwertes aller Vermögenswerte der Gesellschaft oder des aggregierten Marktwertes aller dann im Handelsregister eingetragenen Aktien, unabhängig davon, ob eine dieser Transaktionen Teil einer Auflösung der Gesellschaft ist oder nicht; oder (z) ein vorgeschlagenes Übernahme- oder Umtauschangebot für 50% oder mehr der Gesamtstimmen der Gesellschaft. Die Gesellschaft muss Nahestehenden Aktionären sowie den übrigen Aktionären den Vollzug einer der unter (x) oder (y) des zweiten Satzes dieses Artikels 21 Absatz 4(d) erwähnten Transaktionen mindestens 20 Kalendertage vorher mitteilen. (d)  the Business Combination is proposed prior to the consummation or abandonment of and subsequent to the earlier of the public announcement or the notice required hereunder of a proposed transaction which (i) constitutes one of the transactions described in the second sentence of this Article 21 para. 4(d); (ii) is with or by a Person who either was not an Interested Shareholder during the previous three years or who became an Interested Shareholder with the approval of the Board of Directors; and (iii) is approved or not opposed by a majority of the members of the Board of Directors then in office (but not less than one) who were Directors prior to any Person becoming an Interested Shareholder during the previous three years or were recommended for election to succeed such Directors by a majority of such Directors. The proposed transactions referred to in the preceding sentence are limited to (x) a merger or consolidation of the Company (except for a merger in respect of which no vote of the Company’s shareholders is required); (y) a sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-Owned subsidiary of the Company (other than to any direct or indirect wholly Owned subsidiary or to the Company) having an aggregate market value equal to 50% or more of either that aggregate market value of all of the assets of the Company determined on a consolidated basis or the aggregate market value of all the Shares registered in the Commercial Register; or (z) a proposed tender or exchange offer for 50% or more of the Total Voting Shares. The Company shall give not less than 20 calendar days’ notice to all Interested Shareholders as well as to the other shareholders prior to the consummation of any of the transactions described in clause (x) or (y) of the second sentence of this Article 21 para. 4(d).

22

Artikel 22: Präsenzquorum	Article 22: Presence Quorum
1Jede Beschlussfassung oder Wahl setzt zu ihrer Gültigkeit im Zeitpunkt der Konstituierung der Generalversammlung ein Präsenzquorum von Aktionären, welche mindestens die Mehrheit aller Gesamtstimmen vertreten, voraus. Die Aktionäre können mit der Behandlung der Traktanden fortfahren, selbst wenn Aktionäre nach Bekanntgabe des Quorums durch den Vorsitzenden die Generalversammlung verlassen.	1The adoption of any resolution or election requires the presence of at least a majority of the Total Voting Shares at the time when the General Meeting of Shareholders proceeds to business. The shareholders present at a General Meeting of Shareholders may continue to transact business, despite the withdrawal of shareholders from such General Meeting of Shareholders following announcement of the presence quorum at that meeting.
2Die nachfolgend aufgeführten Angelegenheiten erfordern zum Zeitpunkt der Konstituierung der Generalversammlung ein Präsenzquorum von Aktionären, welche mindestens zwei Drittel der Gesamtstimmen vertreten:	2The matters set forth below require the presence of at least two-thirds of the Total Voting Shares at the time when the General Meeting of Shareholders proceeds to business:
(a)  Die Beschlussfassung über die Abwahl eines amtierenden Verwaltungsratsmitglieds (Artikel 20 Absatz 3 und 21 Absatz 2(e) dieser Statuten); und	(a)  the adoption of a resolution to remove a serving member of the Board of Directors (Articles 20 para. 3 and 21 para. 2(e) of these Articles of Association); and
(b) die Beschlussfassung, diesen Artikel 22 oder Artikel 12(f), 20, 21, 23 oder 24 dieser Statuten zu ändern, zu ergänzen, nicht anzuwenden oder ausser Kraft zu setzen.	(b)  the adoption of a resolution to amend, vary, suspend the operation of, disapply or cancel this Article 22 or Articles 12(f), 20, 21, 23 or 24 of these Articles of Association.
B. Verwaltungsrat	B. Board of Directors
Artikel 23: Anzahl Verwaltungsräte	Article 23: Number of Directors
1Der Verwaltungsrat besteht aus mindestens drei und höchstens neun Mitgliedern.	1The Board of Directors shall consist of no less than three and no more than nine members.
2Sollte die Anzahl der Verwaltungsräte unter die in diesen Statuten vorgesehene Mindestanzahl fallen, kann die Ernennung neuer Verwaltungsratsmitglieder zur Vervollständigung des Verwaltungsrats bis zur nächsten ordentlichen Generalversammlung aufgeschoben werden.	2Should the number of the members of Board of Directors fall under the minimum number provided for in these Articles of Association, the completion of the Board of Directors may be deferred until the next Annual General Meeting.

23

Artikel 24: Amtsdauer	Article 24: Term of Office
1Die Verwaltungsräte werden vom Verwaltungsrat in drei Klassen aufgeteilt, welche als Klasse I, Klasse II und Klasse III bezeichnet werden. An jeder ordentlichen Generalversammlung soll jede Klasse Verwaltungsräte, deren Amtsdauer abläuft, für eine Amtsdauer von drei Jahren bzw. bis zur Wahl eines Nachfolgers in sein Amt gewählt werden.	1The Board of Directors shall divide its members into three classes, designated Class I, Class II and Class III. At each Annual General Meeting, each class of the members of the Board of Directors whose term shall then expire shall be elected to hold office for a three-year term or until the election of their respective successor in office.
2Der Verwaltungsrat legt die Reihenfolge der Wiederwahl fest, wobei die erste Amtszeit einer bestimmten Klasse von Verwaltungsräten auch weniger als drei Jahre betragen kann. Für die Zwecke dieser Bestimmung ist unter einem Jahr der Zeitabschnitt zwischen zwei ordentlichen Generalversammlungen zu verstehen.	2The Board of Directors shall establish the order of rotation, whereby the first term of office of members of a particular class may be less than three years. For purposes of this provision, one year shall mean the period between two Annual General Meetings.
3Wenn ein Verwaltungsratsmitglied vor Ablauf seiner Amtsdauer aus welchen Gründen auch immer ersetzt wird, endet die Amtsdauer des an seiner Stelle gewählten neuen Verwaltungsratsmitgliedes mit dem Ende der Amtsdauer seines Vorgängers.	3If, before the expiration of his term of office, a Director should be replaced for whatever reason, the term of office of the newly elected member of the Board of Directors shall expire at the end of the term of office of his predecessor.
Artikel 25: Organisation des Verwaltungsrats, Entschädigung	Article 25: Organization of the Board, Remuneration
1Der Verwaltungsrat wählt aus seiner Mitte einen Verwaltungsratspräsidenten. Er kann einen oder mehrere Vizepräsidenten wählen. Er bestellt weiter einen Sekretär, welcher nicht Mitglied des Verwaltungsrates sein muss. Der Verwaltungsrat regelt unter Einhaltung der Bestimmungen des Gesetzes und dieser Statuten die Einzelheiten seiner Organisation in einem Organisationsreglement.	1The Board of Directors shall elect from among its members a Chairman. It may elect one or more Vice-Chairmen. It shall further appoint a Secretary, who need not be a member of the Board of Directors. Subject to applicable law and these Articles of Association, the Board of Directors shall establish the particulars of its organization in By-Laws.
2Die Mitglieder des Verwaltungsrates haben Anspruch auf Ersatz ihrer im Interesse der Gesellschaft aufgewendeten Auslagen sowie auf eine ihrer Tätigkeit und Verantwortung entsprechende Entschädigung, deren Betrag der Verwaltungsrat auf Antrag eines Ausschusses des Verwaltungsrates festlegt.	2The members of the Board of Directors shall be entitled to reimbursement of all expenses incurred in the interest of the Company, as well as remuneration for their services that is appropriate in view of their functions and responsibilities. The amount of the remuneration shall be determined by the Board of Directors upon recommendation by a committee of the Board of Directors.
3Im Rahmen des gesetzlich Zulässigen, hält die Gesellschaft gegenwärtige und ehemalige Mitglieder des Verwaltungsrates und der Geschäftsleitung sowie deren Erben, Konkurs- oder Nachlassmassen aus Gesellschaftsmitteln für Kosten, -Abgaben, Verluste, Schäden und Auslagen aus drohenden, hängigen oder abgeschlossenen Klagen, Verfahren oder Untersuchungen zivil-, straf- oder verwaltungsrechtlicher oder anderer Natur schadlos, welche ihnen oder ihren Erben, Konkurs- oder Nachlassmassen entstehen aufgrund von tatsächlichen oder behaupteten Handlungen, Zustimmungen oder Unterlassungen anlässlich oder im Zusammenhang mit der Ausübung ihrer Pflichten oder behaupteten Pflichten oder aufgrund der Tatsache, dass sie Mitglieder des Verwaltungsrates oder der Geschäftsleitung der Gesellschaft sind oder waren oder auf Aufforderung der Gesellschaft Mitglied des Verwaltungsrates, der Geschäftsleitung oder als Arbeitnehmer oder Agent einer anderen Gesellschaft, einer nicht-rechtsfähigen Personengesellschaft, eines Joint Ventures, eines Trusts oder einer sonstigen Geschäftseinheit sind oder waren.	3The Company shall indemnify and hold harmless, to the fullest extent permitted by law, the existing and former members of the Board of Directors and officers, and their heirs, executors and administrators, out of the assets of the Company from and against all threatened, pending or completed actions, suits or proceedings — whether civil, criminal, administrative or investigative — and all costs, charges, losses, damages and expenses which they or any of them, their heirs, executors or administrators, shall or may incur or sustain by or by reason of any act done or alleged to be done, concurred or alleged to be concurred in or omitted or alleged to be omitted in or about the execution of their duty, or alleged duty, or by reason of the fact that he is or was a member of the Board of Directors or officer of the Company, or while serving as a member of the Board of Directors or officer of the Company is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

24

4Ohne den vorangehenden Absatz 3 dieses Artikels 25 einzuschränken, bevorschusst die Gesellschaft gegenwärtigen und ehemaligen Mitgliedern des Verwaltungsrates und der Geschäftsleitung Gerichts-und Anwaltskosten. Die Gesellschaft kann solche Vorschüsse zurückfordern, wenn ein zuständiges Gericht oder eine zuständige Verwaltungsbehörde in einem endgültigen, nicht weiterziehbaren Urteil bzw. Entscheid zum Schluss kommt, dass eine der genannten Zivilrechtlichen Personen ihre Pflichten als Mitglied des Verwaltungsrates oder der Geschäftsleitung absichtlich oder grobfahrlässig verletzt hat.

4Without limiting the foregoing para. 3 of this Article 25, the Company shall advance court costs and attorneys’ fees to the existing and former members of the Board of Directors and officers. The Company may however recover such advanced costs if any of said Persons is found, in a final judgment or decree of a court or governmental or administrative authority of competent jurisdiction not subject to appeal, to have committed an intentional or grossly negligent breach of his statutory duties as a Director of officer.

5Jede Aufhebung oder Änderung von Absatz 3 oder Absatz 4 dieses Artikels 25 lassen alle am Aufhebungs- oder Änderungszeitpunkt bereits bestehenden Rechte oder Verpflichtungen unberührt.

5Any repeal or modification of para. 3 or para. 4 of this Article 25 shall not affect any rights or obligations then existing.

25

Artikel 26: Befugnisse des Verwaltungsrats	Article 26: Specific Powers of the Board
1Der Verwaltungsrat hat die in Artikel 716a OR statuierten unübertragbaren und unentziehbaren Aufgaben, insbesondere:	1The Board of Directors has the non-delegable and inalienable duties as specified in Article 716a CO, in particular:
(a)  die Oberleitung der Gesellschaft und die Erteilung der nötigen Weisungen;	(a)  the ultimate direction of the business of the Company and the issuance of the required directives;
(b) die Festlegung der Organisation der Gesellschaft; und	(b)  the determination of the organization of the Company; and
(c)  die Oberaufsicht über die mit der Geschäftsführung betrauten Personen, namentlich im Hinblick auf die Befolgung der Gesetze, Statuten, Reglemente und Weisungen.	(c)  the ultimate supervision of the individuals entrusted with management duties, in particular with regard to compliance with law, these Articles of Association, By-Laws, regulations and directives.
2Der Verwaltungsrat kann überdies in allen Angelegenheiten Beschluss fassen, die nicht nach Gesetz oder Statuten der Generalversammlung zugeteilt sind.	2In addition, the Board of Directors may pass resolutions with respect to all matters that are not reserved to the General Meeting of Shareholders by law or under these Articles of Association.
3Der Verwaltungsrat kann Beteiligungspläne der Gesellschaft der Generalversammlung zur Genehmigung vorlegen.	3The Board of Directors may submit benefit or incentive plans of the Company to the General Meeting of Shareholders for approval.
Artikel 27: Kompetenzdelegation	Article 27: Delegation of Powers
Der Verwaltungsrat kann unter Vorbehalt von Artikel 26 Absatz 1 dieser Statuten sowie des OR die Geschäftsführung nach Massgabe eines Organisationsreglements ganz oder teilweise an eines oder mehrere seiner Mitglieder, an einen oder mehrere Ausschüsse des Verwaltungsrates oder an Dritte übertragen.	Subject to Article 26 para. 1 of these Articles of Association and the applicable provisions of the CO, the Board of Directors may delegate the management of the Company in whole or in part to individual directors, one or more committees of the Board of Directors or to persons other than Directors pursuant to By-Laws.
Artikel 28: Sitzung des Verwaltungsrats	Article 28: Meeting of the Board of Directors
1Sofern das vom Verwaltungsrat erlassene Organisationsreglement nichts anderes festlegt, ist zur gültigen Beschlussfassung über Geschäfte des Verwaltungsrates die Anwesenheit einer Mehrheit der Mitglieder des gesamten Verwaltungsrates notwendig. Kein Präsenzquorum ist erforderlich für die Feststellungsbeschlüsse des Verwaltungsrates im Zusammenhang mit Kapitalerhöhungen und die entsprechenden Statutenanpassungen.	1Except as otherwise set forth in By-Laws of the Board of Directors, the attendance quorum necessary for the transaction of the business of the Board of Directors shall be a majority of the whole Board of Directors. No attendance quorum shall be required for resolutions of the Board of Directors providing for the confirmation of a capital increase or for the amendment of the Articles of Association in connection therewith.
2Der Verwaltungsrat fasst seine Beschlüsse mit einer Mehrheit der von den anwesenden Verwaltungsräten abgegebenen Stimmen, vorausgesetzt, das Präsenzquorum von Absatz 1 dieses Artikels 28 ist erfüllt. Der Verwaltungsratspräsident hat bei Stimmengleichheit keinen Stichentscheid.	2The Board of Directors shall pass its resolutions with the majority of the votes cast by the Directors present at a meeting at which the attendance quorum of para. 1 of this Article 28 is satisfied. The Chairman shall have no casting vote.

26

Artikel 29: Zeichnungsberechtigung	Article 29: Signature Power
Die rechtsverbindliche Vertretung der Gesellschaft durch Mitglieder des Verwaltungsrates und durch Dritte wird in einem Organisationsreglement festgelegt.	The due and valid representation of the Company by members of the Board of Directors and other persons shall be set forth in By-Laws.
C. Revisionsstelle	C. Auditor
Artikel 30: Amtsdauer, Befugnisse und Pflichten	Article 30: Term, Power, Duties
1Die Revisionsstelle wird von der ordentlichen Generalversammlung gewählt und es obliegen ihr die vom Gesetz zugewiesenen Befugnisse und Pflichten.	1The auditor shall be elected by the Annual General Meeting and shall have the powers and duties vested in it by law.
2Die Amtsdauer der Revisionsstelle beginnt am Tage der Wahl an einer ordentlichen Generalversammlung und endet am Tage der Wiederwahl der aktuellen Revisionsstelle oder am Tag der Wahl einer anderen Revisionsstelle als Nachfolgerin der bisherigen Revisionsstelle.	2The term of office of the auditor shall commence on the day of election at an Annual General Meeting and terminate on the day that auditor is re-elected or that auditor’s successor is elected.
IV. Jahresrechnung, Konzernrechnung und Gewinnverteilung	IV. Annual Statutory Financial Statements, Consolidated Financial Statements and Profit; Allocation
Artikel 31: Geschäftsjahr	Article 31: Fiscal Year
Der Verwaltungsrat legt das Geschäftsjahr fest.	The Board of Directors determines the fiscal year.
Artikel 32: Verteilung des Bilanzgewinns, Reserven	Article 32: Allocation of Profit Shown on the Annual Statutory Balance Sheet, Reserves
1Über den Bilanzgewinn verfügt die Generalversammlung im Rahmen der anwendbaren gesetzlichen Vorschriften. Der Verwaltungsrat unterbreitet der Generalversammlung seine Vorschläge betreffend die Behandlung sämtlicher Zuweisungen.	1The profit shown on the annual statutory balance sheet shall be allocated by the General Meeting of Shareholders in accordance with applicable law. The Board of Directors shall submit its proposals with respect to the treatment of any allocation to the General Meeting of Shareholders.
2Neben der gesetzlichen Reserve können weitere Reserven geschaffen werden.	2Further reserves may be taken in addition to the reserves required by law.
3Dividenden, welche nicht innerhalb von fünf Jahren nach ihrem Auszahlungsdatum bezogen werden, fallen an die Gesellschaft und werden in die allgemeinen gesetzlichen Reserven verbucht.	3Dividends that have not been collected within five years after their payment date shall enure to the Company and be allocated to the general statutory reserves.

27

V. Auflösung, Liquidation	V. Winding-up and Liquidation
Artikel 33: Auflösung und Liquidation	Article 33: Winding-up and Liquidation
1Die Generalversammlung kann jederzeit die Auflösung und Liquidation der Gesellschaft nach Massgabe der gesetzlichen und statutarischen Vorschriften beschliessen.	1The General Meeting of Shareholders may at any time resolve on the winding-up and liquidation of the Company pursuant to applicable law and the provisions set forth in these Articles of Association.
2Die Liquidation wird durch den Verwaltungsrat durchgeführt, sofern sie nicht durch die Generalversammlung anderen Zivilrechtlichen Personen übertragen wird.	2The liquidation shall be effected by the Board of Directors, unless the General Meeting of Shareholders shall appoint other Persons as liquidators.
3Die Liquidation der Gesellschaft erfolgt nach Massgabe der gesetzlichen Vorschriften.	3The liquidation of the Company shall be effectuated pursuant to the statutory provisions.
4Nach erfolgter Tilgung der Schulden wird das Vermögen nach Massgabe der eingezahlten Beträge unter den Aktionären verteilt, soweit diese Statuten nichts anderes vorsehen.	4Upon discharge of all liabilities, the assets of the Company shall be distributed to the shareholders pursuant to the amounts paid-up, unless these Articles of Association provide otherwise.
VI. Bekanntmachungen, Mitteilungen	VI. Announcements, Communications
Artikel 34: Bekanntmachungen, Mitteilungen	Article 34: Announcements, Communications
1Publikationsorgan der Gesellschaft ist das Schweizerische Handelsamtsblatt.	1The official means of publication of the Company shall be the Swiss Official Gazette of Commerce.
2Soweit keine individuelle Benachrichtigung durch das Gesetz, börsengesetzliche Bestimmungen oder diese Statuten verlangt wird, gelten sämtliche Mitteilungen an die Aktionäre als gültig erfolgt, wenn sie im Schweizerischen Handelsamtsblatt veröffentlicht worden sind. Schriftliche Bekanntmachungen der Gesellschaft an die Aktionäre werden auf dem ordentlichen Postweg an die letzte im Aktienbuch verzeichnete Adresse des Aktionärs oder des bevollmächtigten Empfängers geschickt. Finanzinstitute, welche Aktien für wirtschaftlich Berechtigte halten und entsprechend im Aktienbuch eingetragen sind, gelten als bevollmächtigte Empfänger.	2To the extent that individual notification is not required by law, stock exchange regulations or these Articles of Association, all communications to the shareholders shall be deemed valid if published in the Swiss Official Gazette of Commerce. Written communications by the Company to its shareholders shall be sent by ordinary mail to the last address of the shareholder or authorized recipient recorded in the share register. Financial institutions holding Shares for beneficial owners and recorded in such capacity in the share register shall be deemed to be authorized recipients.

28

VII. Verbindlicher Originaltext	VII. Original Language
Falls sich zwischen der deutsch- und der englischsprachigen Fassung dieser Statuten Differenzen ergeben, hat die deutschsprachige Fassung Vorrang.	In the event of deviations between the German and English version of these Articles of Association, the German text shall prevail.
VIII. Definitionen	VIII. Definitions
Artikel 35: Definitionen	Article 35: Definitions
Aktie	Shares
Der Begriff Aktie(n) hat die in Artikel 4 dieser Statuten aufgeführte Bedeutung.	The term Share(s) has the meaning assigned to it in Article 4 of these Articles of Association.
Ausserordentliche Generalversammlung	Extraordinary General Meeting
Der Begriff ausserordentliche Generalversammlung hat die in Artikel 14 Absatz 1 dieser Statuten aufgeführte Bedeutung.	The term Extraordinary General Meeting has the meaning assigned to it in Article 14 para. 1 of these Articles of Association.
Clearing Nominee	Clearing Nominee
Clearing Nominee bedeutet Nominees von Clearing Gesellschaften für Aktien (wie beispielsweise Cede & Co., der Nominee der Depository Trust Company, eine US securities and clearing agency), im Einklang mit den durch den Verwaltungsrat erlassenen Bestimmungen.	Clearing Nominee means nominees of clearing organizations for the Shares (such as Cede & Co., the nominee of the Depository Trust Company, a United States securities depositary and clearing agency) in accordance with regulations issued by the Board of Directors.
Eigentümer	Owner
Eigentümer(in), unter Einschluss der Begriffe Eigentum, halten, gehalten, Eigentümerschaft oder ähnlicher Begriffe, bedeutet, wenn verwendet mit Bezug auf Aktien, jede Zivilrechtliche Person, welche allein oder zusammen mit oder über Nahestehende(n) Gesellschaften oder Nahestehende(n) Personen:	Owner, including the terms Own, Owned and Ownership when used with respect to any Shares means a Person that individually or with or through any of its Affiliates or Associates:
(a)  wirtschaftliche Eigentümerin dieser Aktien ist, ob direkt oder indirekt;	(a)  beneficially Owns such Shares, directly or indirectly;

29

(b) (1) das Recht hat, aufgrund eines Vertrags, einer Absprache oder einer anderen Vereinbarung, oder aufgrund der Ausübung eines Wandel-, Tausch-, Bezugs- oder Optionsrechts oder anderweitig Aktien zu erwerben (unabhängig davon, ob dieses Recht sofort ausübbar ist oder nur nach einer gewissen Zeit); vorausgesetzt, dass eine Person nicht als Eigentümerin derjenigen Aktien gilt, die im Rahmen eines Übernahme- oder Umtauschangebots, das diese Zivilrechtliche Person oder eine dieser Zivilrechtlichen Person Nahestehende Gesellschaft oder Nahestehende Person gemacht hat, angedient werden, bis diese Aktien verbindlich zum Kauf oder Tausch akzeptiert werden; oder (2) das Recht hat, die Stimmrechte dieser Aktien aufgrund eines Vertrags, einer Absprache oder einer anderen Vereinbarung auszuüben; vorausgesetzt, dass eine Zivilrechtliche Person nicht als Eigentümerin von Aktien gilt, sofern ihr Recht, das Stimmrecht auszuüben auf einem Vertrag, einer Absprache oder einer anderen Vereinbarung beruht, welche(r) nur aufgrund einer widerruflichen Vollmacht (proxy) oder Zustimmung zustande gekommen ist, die in Erwiderung auf eine an 10 oder mehr Zivilrechtliche Personen gemachte diesbezügliche Aufforderung ergangen ist; oder

(b)   has (1) the right to acquire such Shares (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Owner of Shares tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered Shares are accepted for purchase or exchange; or (2) the right to vote such Shares pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Owner of any Shares because of such Person’s right to vote such Shares if the agreement, arrangement or understanding to vote such Shares arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made to 10 or more Persons; or

(c) zwecks Erwerbs, Haltens, Stimmrechtsausübung (mit Ausnahme der Stimmrechtsausübung aufgrund einer widerruflichen Vollmacht (proxy) oder Zustimmung wie in diesen Statuten umschrieben) oder Veräusserung dieser Aktien mit einer anderen Zivilrechtlichen Person in einen Vertrag, eine Absprache oder eine andere Vereinbarung getreten ist, die direkt oder indirekt entweder selbst oder über ihr Nahestehende Gesellschaften oder Nahestehende Personen wirtschaftlich Eigentümerin dieser Aktien ist.

(c)   has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in these Articles of Association), or disposing of such Shares with any other Person that beneficially Owns, or whose Affiliates or Associates beneficially Own, directly or indirectly, such Shares.

30

Generalversammlung	General Meeting of Shareholders
Der Begriff Generalversammlung hat die in Artikel 15 Absatz 1 dieser Statuten aufgeführte Bedeutung.	The term General Meeting of Shareholders has the meaning assigned to it in Article 15 para. 1 of these Articles of Association.
Gesamtstimmen	Total Voting Shares
Der Begriff “Gesamtstimmen” bedeutet die Gesamtzahl aller an einer Generalversammlung stimmberechtigen Aktien unabhängig davon, ob die stimmberechtigten Aktien an der Generalversammlung vertreten sind oder nicht.	Total Voting Shares means the total number of Shares entitled to vote at a General Meeting of Shareholders whether or not represented at such meeting.
Gesellschaft	Company
Der Begriff Gesellschaft hat die in Artikel 1 dieser Statuten aufgeführte Bedeutung.	The term Company has the meaning assigned to it in Article 1 of these Articles of Association.
Kontrolle	Control
Kontrolle, einschliesslich der Begriffe kontrollierend, kontrolliert von und unter gemeinsamer Kontrolle mit, bedeutet die Möglichkeit, direkt oder indirekt auf die Geschäftsführung und die Geschäftspolitik einer Zivilrechtlichen Person Einfluss zu nehmen, sei es aufgrund des Haltens von Stimmrechten, eines Vertrags oder auf andere Weise. Eine Zivilrechtliche Person, welche 20% oder mehr der ausgegebenen oder ausstehenden Stimmrechte einer Kapitalgesellschaft, rechts- oder nicht-rechtsfähigen Personengesellschaft oder eines anderen Rechtsträgers hält, hat mangels Nachweises des Gegenteils unter Anwendung des Beweismasses der überwiegenden Wahrscheinlichkeit der Beweismittel vermutungsweise Kontrolle über einen solchen Rechtsträger. Ungeachtet des Voranstehenden gilt diese Vermutung der Kontrolle nicht, wenn eine Zivilrechtliche Person in Treu und Glauben und nicht zur Umgehung dieser Bestimmung Stimmrechte als Stellvertreter (agent), Bank, Börsenmakler (broker), Nominee, Depotbank (custodian) oder Treuhänder (trustee) für einen oder mehrere Eigentümer hält, die für sich allein oder zusammen als Gruppe keine Kontrolle über den betreffenden Rechtsträger haben.	Control, including the terms controlling, controlled by and under common control with, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the Ownership of voting shares, by contract, or otherwise. A Person who is the Owner of 20% or more of the issued or outstanding voting shares of any corporation, partnership, unincorporated association or other entity shall be presumed to have control of such entity, in the absence of proof by a preponderance of the evidence to the contrary. Notwithstanding the foregoing, a presumption of control shall not apply where such Person holds voting shares, in good faith and not for the purpose of circumventing this provision, as an agent, bank, broker, nominee, custodian or trustee for one or more Owners who do not individually or as a group have control of such entity.
Mit Umwandlungsrechten verbundene Obligationen	Rights-Bearing Obligations
Der Begriff mit Umwandlungsrechten verbundene Obligationen hat die in Artikel 7 Absatz 1(a) dieser Statuten aufgeführte Bedeutung.	The term Rights-Bearing Obligations has the meaning assigned to it in Article 7 para. 1(a) of these Articles of Association.

31

Nahestehender Aktionäre

Interested Shareholder

Nahestehender Aktionär bedeutet jede Zivilrechtliche Person (unter Ausschluss der Gesellschaft oder jeder direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird), (i) die Eigentümerin von 15% oder mehr des im Handelsregister eingetragenen Aktienkapitals (die eigenen Aktien der Gesellschaft davon ausgenommen) ist, oder (ii) die als Nahestehende Gesellschaft oder Nahestehende Person anzusehen ist und irgendwann in den drei unmittelbar vorangehenden Jahren vor dem Zeitpunkt, zu dem bestimmt werden muss, ob diese Zivilrechtliche Person ein Nahestehender Aktionär ist, Eigentümerin von 15% oder mehr des im Handelsregister eingetragenen Aktienkapitals (die eigenen Aktien der Gesellschaft davon ausgenommen) gewesen ist, ebenso wie jede Nahestehende Gesellschaft und Nahestehende Person dieser Zivilrechtlichen Person; vorausgesetzt, dass eine Zivilrechtliche Person nicht als Nahestehender Aktionär gilt, die aufgrund von Handlungen, die ausschliesslich der Gesellschaft zuzurechnen sind, Eigentümerin von Aktien in Überschreitung der 15%-Beschränkung ist; wobei jedoch jede solche Zivilrechtliche Person dann als Nahestehender Aktionär gilt, falls sie später zusätzliche Aktien erwirbt, ausser dieser Erwerb erfolgt aufgrund von weiteren Gesellschaftshandlungen, die weder direkt noch indirekt von dieser Zivilrechtlichen Person ausgehen. Zur Bestimmung, ob eine Zivilrechtliche Person ein Nahestehender Aktionär ist, sind die als ausgegeben geltenden Aktien unter Einschluss der von dieser Zivilrechtlichen Person gehaltenen Aktien (unter Anwendung des Begriffs “Eigentümer” wie in diesen Statuten definiert) zu berechnen, jedoch unter Ausschluss von nichtausgegebenen Aktien, die aufgrund eines Vertrags, einer Absprache oder einer anderen Vereinbarung, oder aufgrund der Ausübung eines Wandel-, Bezugs- oder Optionsrechts oder anderweitig ausgegeben werden können.

Interested Shareholder means any Person (other than the Company or any direct or indirect majority-Owned subsidiary of the Company) (i) that is the Owner of 15% or more of the share capital registered in the Commercial Register (excluding treasury shares) or (ii) that is an Affiliate or Associate of the Company and was the Owner of 15% or more of the share capital registered in the Commercial Register (excluding treasury shares) at any time within the three-year period immediately prior to the date on which it is sought to be determined whether such Person is an Interested Shareholder, and also the Affiliates and Associates of such Person; provided, however, that the term Interested Shareholder shall not include any Person whose Ownership of Shares in excess of the 15% limitation is the result of action taken solely by the Company; provided that such Person shall be an Interested Shareholder if thereafter such Person acquires additional Shares, except as a result of further corporate action not caused, directly or indirectly, by such Person. For the purpose of determining whether a Person is an Interested Shareholder, the Shares deemed to be in issue shall include Shares deemed to be Owned by the Person (through the application of the definition of Owner in these Articles of Association) but shall not include any other unissued Shares which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

32

Nahestehende Gesellschaft	Affiliate
Nahestehende Gesellschaft bedeutet jede Zivilrechtliche Person, die direkt oder indirekt über eine oder mehrere Mittelspersonen eine andere Person kontrolliert, von einer anderen Zivilrechtlichen Person kontrolliert wird, oder unter gemeinsamer Kontrolle mit einer anderen Zivilrechtlichen Person steht.	Affiliate means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person.
Nahestehende Person	Associate
Nahestehende Person bedeutet, wenn verwendet zur Bezeichnung einer Beziehung zu einer Zivilrechtlichen Person, (i) jede Kapitalgesellschaft, rechts- oder nicht-rechtsfähige Personengesellschaft oder ein anderer Rechtsträger, von welcher diese Zivilrechtliche Person Mitglied des Leitungs- oder Verwaltungsorgans, der Geschäftsleitung oder Gesellschafter ist oder von welcher diese Person, direkt oder indirekt, Eigentümerin von 20% oder mehr einer Kategorie von Aktien oder anderen Anteilsrechten ist, die ein Stimmrecht vermitteln, (ii) jedes Treuhandvermögen (Trust) oder jede andere Vermögenseinheit, an der diese Zivilrechtliche Person wirtschaftlich einen Anteil von 20% oder mehr hält oder in Bezug auf welche diese Zivilrechtliche Person als Verwalter (trustee) oder in ähnlich treuhändischer Funktion tätig ist, und (iii) jeder Verwandte, Ehe- oder Lebenspartner dieser Person, oder jede Verwandte des Ehe- oder Lebenspartners, jeweils soweit diese den gleichen Wohnsitz haben wie diese Person.	Associate, when used to indicate a relationship with any Person, means (i) any corporation, partnership, unincorporated association or other entity of which such Person is a director, officer or partner or is, directly or indirectly, the Owner of 20% or more of any class of voting shares, (ii) any trust or other estate in which such Person has at least a 20% beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity, and (iii) any relative or spouse of such Person, or any relative of such spouse, who has the same residence as such Person.
OR	CO
Der Begriff OR hat die in Artikel 1 dieser Statuten aufgeführte Bedeutung.	The term CO has the meaning assigned to it in Article 1 of these Articles of Association.
Ordentliche Generalversammlung	Annual General Meeting
Der Begriff ordentliche Generalversammlung hat die in Artikel 13 Absatz 1 dieser Statuten aufgeführte Bedeutung.	The term Annual General Meeting has the meaning assigned to it in Article 13 para. 1 of these Articles of Association.
Organisationsreglement	By-Laws
Das vom Verwaltungsrat erlassene Organisationsreglement, jeweils in seiner aktuellsten Fassung.	The By-Laws released by the Board of Directors in their most recent version.

33

SEC	SEC
Der Begriff SEC hat die in Artikel 14 Absatz 2(b) dieser Statuten aufgeführte Bedeutung.	The term SEC has the meaning assigned to it in Article 14 para. 2(b) of these Articles of Association.
Transfer Agent	Transfer Agent
Der Begriff Transfer Agent hat die in Artikel 8 Absatz 3 dieser Statuten aufgeführte Bedeutung.	The term Transfer Agent has the meaning assigned to it in Article 8 para. 3 of these Articles of Association.
Umwandlungsrechte	Rights
Der Begriff Umwandlungsrechte hat die in Artikel 7 Absatz 1(a) dieser Statuten aufgeführte Bedeutung.	The term Rights has the meaning assigned to it in Article 7 para. 1(a) of these Articles of Association.
Zivilrechtliche Person	Person
Zivilrechtliche Person bedeutet jede natürliche Person, Kapitalgesellschaft, rechts- oder nicht-rechtsfähige Personengesellschaft oder jeder andere Rechtsträger.	Person means any individual, corporation, partnership, unincorporated association or other entity.
Zusammenschluss	Business Combination
Zusammenschluss bedeutet, wenn im Rahmen dieser Statuten in Bezug auf die Gesellschaft oder einen Nahestehenden Aktionär der Gesellschaft verwendet:	Business Combination, when used in these Articles of Association in reference to the Company and any Interested Shareholder of the Company, means:
(a) jede Fusion oder andere Form des Zusammenschlusses der Gesellschaft oder einer direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, mit (1) dem Nahestehenden Aktionär oder (2) einer anderen Kapitalgesellschaft, rechts- oder nicht-rechtsfähigen Personengesellschaft oder einem anderen Rechtsträger, soweit diese Fusion oder andere Form des Zusammenschlusses durch den Nahestehenden Aktionär verursacht worden ist und als Folge dieser Fusion oder anderen Form des Zusammenschlusses Artikel 12(f) und Artikel 21 Absatz 4 dieser Statuten (sowie jede der dazu gehörigen Definition in diesen Statuten) oder im Wesentlichen gleiche Bestimmungen wie Artikel 12(f) und Artikel 21 Absatz 4 (sowie die dazugehörigen Definitionen in diesen Statuten) auf den überlebenden Rechtsträger nicht anwendbar sind;	(a)   any merger or consolidation of the Company or any direct or indirect majority-Owned subsidiary of the Company with (1) the Interested Shareholder or (2) any other corporation, partnership, unincorporated association or other entity if the merger or consolidation is caused by the Interested Shareholder and as a result of such merger or consolidation Article 12(f) and Article 21 para. 4 of these Articles of Association (including the relevant definitions in these Articles of Association pertaining thereto) or a provision substantially the same as such Article 12(f) and Article 21 para. 4 (including the relevant definitions in these Articles of Association) are not applicable to the surviving entity;

34

(b)  jeder Verkauf, jede Vermietung oder Verpachtung, jeder Tausch, jede hypothekarische Belastung oder andere Verpfändung, Übertragung oder andere Verfügung (ob in einer oder mehreren Transaktionen) von oder über Vermögenswerte(n) der Gesellschaft oder einer direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, an einen Nahestehenden Aktionär (ausser soweit der Zuerwerb unter einer der genannten Transaktionen proportional als Aktionär erfolgt), soweit diese Vermögenswerte einen Marktwert von 10% oder mehr entweder des auf konsolidierter Basis aggregierten Marktwertes aller Vermögenswerte der Gesellschaft oder des aggregierten Marktwertes aller dann ausgegebenen Aktien haben, unabhängig davon, ob eine dieser Transaktionen Teil einer Auflösung der Gesellschaft ist oder nicht;

(b)  any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except proportionately as a shareholder, to or with the Interested Shareholder, whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-Owned subsidiary of the Company which assets have an aggregate market value equal to 10% or more of either the aggregate market value of all the assets of the Company determined on a consolidated basis or the aggregate market value of all the Shares then in issue;

(c) jede Transaktion, die dazu führt, dass die Gesellschaft oder eine direkte oder indirekte Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, Aktien oder Tochtergesellschafts-Aktien an den Nahestehenden Aktionär ausgibt oder überträgt, es sei denn (1) aufgrund der Ausübung, des Tauschs oder der Wandlung von Finanzmarktinstrumenten, die in Aktien oder Aktien einer direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, ausgeübt, getauscht oder gewandelt werden können, vorausgesetzt, die betreffenden Finanzmarktinstrumente waren zum Zeitpunkt, in dem der Nahestehende Aktionär zu einem solchem wurde, bereits ausgegeben; (2) als Dividende oder Ausschüttung, oder aufgrund der Ausübung, des Tauschs oder der Wandlung von Finanzmarktinstrumenten, die in Aktien oder Aktien einer direkten oder indirekten Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, ausgeübt, getauscht oder gewandelt werden können, vorausgesetzt, diese Finanzinstrumente werden allen Aktionäre anteilsmässig ausgegeben, nachdem der Nahestehende Aktionär zu einem solchem wurde; (3) gemäss einem Umtauschangebot der Gesellschaft, Aktien von allen Aktionären zu den gleichen Bedingungen zu erwerben; oder (4) aufgrund der Ausgabe oder der Übertragung von Aktien durch die Gesellschaft; vorausgesetzt, dass in keinem der unter (2) bis (4) genannten Fällen der proportionale Anteil des Nahestehenden Aktionärs an den Aktien erhöht werden darf;

(c)  any transaction which results in the issuance or transfer by the Company or by any direct or indirect majority-Owned subsidiary of the Company of any Shares or shares of such subsidiary to the Interested Shareholder, except (1) pursuant to the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into Shares or the shares of a direct or indirect majority-Owned subsidiary of the Company which securities were in issue prior to the time that the Interested Shareholder became such; (2) pursuant to a dividend or distribution paid or made, or the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into Shares or the shares of a direct or indirect majority-Owned subsidiary of the Company which security is distributed, pro rata, to all shareholders subsequent to the time the Interested Shareholder became such; (3) pursuant to an exchange offer by the Company to purchase Shares made on the same terms to all holders of said Shares; or (4) any issuance or transfer of Shares by the Company; provided, however, that in no case under (2)-(4) above shall there be an increase in the Interested Shareholder’s proportionate interest in the Shares;

35

(d)  jede Transaktion, in welche die Gesellschaft oder eine direkte oder indirekte Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, involviert ist, und die direkt oder indirekt dazu führt, dass der proportionale Anteil der vom Nahestehenden Aktionär gehaltenen Aktien, in Aktien wandelbare Obligationen oder Tochtergesellschafts-Aktien erhöht wird, ausser eine solche Erhöhung ist nur unwesentlich und die Folge eines Spitzenausgleichs für Fraktionen oder eines Rückkaufs oder einer Rücknahme von Aktien, soweit diese(r) weder direkt noch indirekt durch den Nahestehenden Aktionär verursacht wurde; oder

(d)  any transaction involving the Company or any direct or indirect majority-Owned subsidiary of the Company which has the effect, directly or indirectly, of increasing the proportionate interest in the Shares, or securities convertible into the Shares, or in the shares of any such subsidiary which is Owned by the Interested Shareholder, except as a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any Shares not caused, directly or indirectly, by the Interested Shareholder; or

(e)  jede direkte oder indirekte Gewährung von Darlehen, Vorschüssen, Garantien, Bürgschaften, oder garantieähnlichen Verpflichtungen, Pfändern oder anderen finanziellen Begünstigungen (mit Ausnahme einer solchen, die gemäss den Unterabschnitten (a) - (d) dieses Artikels ausdrücklich erlaubt ist sowie einer solchen, die proportional an alle Aktionäre erfolgt) durch die oder über die Gesellschaft oder eine direkte oder indirekte Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten wird, an den Nahestehenden Aktionär.

(e)   any receipt by the Interested Shareholder of the benefit, directly or indirectly (except proportionately as a shareholder), of any loans, advances, guarantees, pledges or other financial benefits (other than those expressly permitted in subsections (a) — (d) immediately above) provided by or through the Company or any direct or indirect majority-Owned subsidiary of the Company.

36

IX. Übergangsbestimmung	IX. Transitional Provision
Artikel 36: Sacheinlagevertrag	Article 36: Contribution in Kind Agreement
Die Gesellschaft übernimmt bei der Kapitalerhöhung vom 27. März 2009 von der Noble Corporation in Grand Cayman, Cayman Islands (“Noble-Cayman”), gemäss Sacheinlagevertrag vom 27. März 2009 (“Sacheinlagevertrag”) 261’245’693 Aktien (ordinary shares) der Noble-Cayman. Diese Aktien werden zu einem Übernahmewert von insgesamt Schweizer Franken 10’676’100’000 übernommen. Als Gegenleistung für diese Sacheinlage gibt die Gesellschaft einem Exchange Agent, handelnd auf Rechnung der Aktionäre der Noble-Cayman im Zeitpunkt unmittelbar vor Vollzug des Sacheinlagevertrages und im Namen und auf Rechnung der Noble-Cayman, insgesamt 276’245’693 voll einbezahlte Aktien mit einem Nennwert von insgesamt Schweizer Franken 1’381’228’465 aus. Die Gesellschaft weist die Differenz zwischen dem totalen Nennwert der ausgegebenen Aktien und dem Übernahmewert der Sacheinlage im Gesamtbetrag von Schweizer Franken 9’294’771’535 den Reserven der Gesellschaft zu.	In connection with the capital increase of March 27, 2009, and in accordance with the contribution in kind agreement dated as of March 27, 2009 (the “Contribution in Kind Agreement”), the Company acquires 261’245’693 ordinary shares of Noble Corporation, Grand Cayman, Cayman Islands (“Noble-Cayman”). The shares of Noble-Cayman have a total value of Swiss Francs 10’676’100’000. As consideration for this contribution, the Company issues to an exchange agent, acting for the account of the holders of ordinary shares of Noble-Cayman outstanding immediately prior to the completion of the Contribution in Kind Agreement and in the name and the account of Noble-Cayman, a total of 276’245’693 Shares with a total par value of Swiss Francs 1’381’228’465. The difference between the aggregate par value of the issued Shares and the total value of the contribution in the amount of Swiss Francs 9’294’771’535 is allocated to the reserves of the Company.
Zug, 29. April 2011	Zug, April 29, 2011

37

Inhaltsverzeichnis

Table of Contents

I. Allgemeine Bestimmungen	1
I. General Provisions	1
Artikel 1: Firma, Sitz, Dauer	1
Artikel 2: Zweck	1
Artikel 3: Dauer	2
II. Aktienkapital	2
II. Share Capital	2
Artikel 4: Anzahl Aktien, Nominalwert, Art	2
Artikel 5: Anerkennung der Statuten	2
Artikel 6: Genehmigtes Aktienkapital	2
Artikel 7: Bedingtes Aktienkapital	4
Artikel 8: Aktienzertifikate	7
Artikel 9: Aktienbuch, Eintragungsbeschränkungen, Nominees	9
Artikel 10: Rechtsausübung	10
III. Organe und Organisation der Gesellschaft	11
III. Corporate Bodies and Organization of the Company	11
Artikel 11: Gesellschaftsorgane	11
Artikel 12: Befugnisse	11
Artikel 13: Ordentliche Generalversammlung	12
Artikel 14: Ausserordentliche Generalversammlung	12
Artikel 15: Einberufung der Generalversammlung	13
Artikel 16: Traktandierung; Nominierungen	14
Artikel 17: Vorsitz der Generalversammlung, Protokoll, Stimmenzähler	16
Artikel 18: Recht auf Teilnahme, Vertretung der Aktionäre	17
Artikel 19: Stimmrechte	17
Artikel 20: Beschlüsse und Wahlen: Mehrheitserfordernisse	17
Artikel 21: Besonderes Stimmen Quorum	18
Artikel 22: Präsenzquorum	23
Artikel 23: Anzahl Verwaltungsräte	23
Artikel 24: Amtsdauer	23
Artikel 25: Organisation des Verwaltungsrats, Entschädigung	24
Artikel 26: Befugnisse des Verwaltungsrats	25

38

Artikel 27: Kompetenzdelegation	26
Artikel 28: Sitzung des Verwaltungsrats	26
Artikel 29: Zeichnungsberechtigung	27
Artikel 30: Amtsdauer, Befugnisse und Pflichten	27
IV. Jahresrechnung, Konzernrechnung und Gewinnverteilung	27
IV. Annual Statutory Financial Statements, Consolidated Financial Statements and Profit; Allocation	27
Artikel 31: Geschäftsjahr	27
Artikel 32: Verteilung des Bilanzgewinns, Reserven	27
V. Auflösung, Liquidation	28
V. Winding-up and Liquidation	28
Artikel 33: Auflösung und Liquidation	28
VI. Bekanntmachungen, Mitteilungen	28
VI. Announcements, Communications	28
Artikel 34: Bekanntmachungen, Mitteilungen	28
VII. Verbindlicher Originaltext	29
VII. Original Language	29
VIII. Definitionen	29
VIII. Definitions	29
Artikel 35: Definitionen	29
IX. Übergangsbestimmung	37
IX. Transitional Provision	37
Artikel 36: Sacheinlagevertrag	37

39

EX-31.1

EXHIBIT 31.1

Noble Corporation, a Swiss corporation
Noble Corporation, a Cayman Islands company

I, David W. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Noble Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2011

/s/David W. Williams                                    
David W. Williams
Chairman, President and Chief Executive Officer
of Noble Corporation, a Swiss corporation, and
President and Chief Executive Officer
of Noble Corporation, a Cayman Islands company

EX-31.2

EXHIBIT 31.2

Noble Corporation, a Swiss corporation
Noble Corporation, a Cayman Islands company

I, Dennis J. Lubojacky, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Noble Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2011
 

/s/Dennis J. Lubojacky                                  

Dennis J. Lubojacky

Principal Financial Officer and Principal Accounting Officer
of Noble Corporation, a Swiss corporation, and
Vice President and Chief Financial Officer
of Noble Corporation, a Cayman Islands company

EX-32.1

EXHIBIT 32.1

Noble Corporation, a Swiss corporation
Noble Corporation, a Cayman Islands company

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Noble Corporation, a Swiss corporation (“Noble-Swiss”), and Noble Corporation, a Cayman Islands company (“Noble-Cayman”) on Form 10-Q for the period ended September 30, 2011, as filed with the United States Securities and Exchange Commission on the date hereof (the “Report”), I, David W. Williams, Chairman, President and Chief Executive Officer of Noble-Swiss and President and Chief Executive Officer of Noble-Cayman, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 2, 2011

/s/David W. Williams                            
David W. Williams
Chairman, President and Chief Executive Officer
of Noble Corporation, a Swiss corporation, and
President and Chief Executive Officer
of Noble Corporation, a Cayman Islands company  

EX-32.2

EXHIBIT 32.2

Noble Corporation, a Swiss corporation
Noble Corporation, a Cayman Islands company

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Noble Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2011, as filed with the United States Securities and Exchange Commission on the date hereof (the “Report”), I, Dennis J. Lubojacky, Principal Financial and Accounting Officer of Noble-Swiss and Vice President and Chief Financial Officer of Noble-Cayman, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 2, 2011

/s/Dennis J. Lubojacky                               
Dennis J. Lubojacky
Principal Financial Officer and Principal Accounting Officer
of Noble Corporation, a Swiss corporation, and
Vice President and Chief Financial Officer
of Noble Corporation, a Cayman Islands company

XML

Employee Benefit Plans (Details) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Non-U.S. [Member]
Pension Costs
Service cost	$ 1,141	$ 1,045	$ 3,387	$ 3,211
Interest cost	1,433	1,224	4,256	3,694
Return on plan assets	(1,449)	(1,331)	(4,306)	(3,999)
Amortization of prior service cost
Amortization of transition obligation	19	17	56	53
Recognized net actuarial loss	123	181	366	537
Net pension expense	1,267	1,136	3,759	3,496
U.S [Member]
Pension Costs
Service cost	2,152	1,912	6,456	5,736
Interest cost	2,143	1,957	6,428	5,871
Return on plan assets	(2,768)	(2,392)	(8,304)	(7,176)
Amortization of prior service cost	57	57	170	171
Amortization of transition obligation
Recognized net actuarial loss	844	705	2,531	2,115
Net pension expense	$ 2,428	$ 2,239	$ 7,281	$ 6,717

XML

Consolidated Balance Sheet (Parenthetical) (Unaudited) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Shareholders' equity
Shares, shares outstanding	252,718	262,415
Ordinary shares, shares outstanding	252,433	252,275
Treasury stock, shares	285	10,140
Noble-Cayman [Member]
Shareholders' equity
Ordinary shares, shares outstanding	261,246	261,246

XML

Consolidated Statement of Income (Unaudited) (USD $) In Thousands, except Per Share data	1 Months Ended	3 Months Ended			9 Months Ended
	Jan. 31, 2011	Sep. 30, 2011	Mar. 31, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Operating revenues
Contract drilling services		$ 704,892		$ 584,919	$ 1,837,047	$ 2,081,075
Reimbursables		17,438		19,177	63,851	57,163
Labor contract drilling services		15,564		7,887	43,123	23,704
Other		8		635	766	1,449
Total operating revenues		737,902		612,618	1,944,787	2,163,391
Operating costs and expenses
Contract drilling services		358,547		315,844	1,001,638	845,870
Reimbursables		13,971		14,351	49,797	44,459
Labor contract drilling services		8,053		5,302	25,326	16,570
Depreciation and amortization		166,213		143,282	487,454	385,366
Selling, general and administrative		27,536		25,482	72,883	71,261
Gain on contract extinguishments, net	32,600		52,500		(21,202)
Total operating costs and expenses		574,320		504,261	1,615,896	1,363,526
Operating income		163,582		108,357	328,891	799,865
Other income (expense)
Interest expense, net of amount capitalized		(11,530)		(4,144)	(45,400)	(5,119)
Interest income and other, net		1,117		2,561	3,175	7,193
Income before income taxes		153,169		106,774	286,666	801,939
Income tax provision		(17,614)		(20,287)	(42,481)	(126,801)
Net income		135,555		86,487	244,185	675,138
Net income attributable to noncontrolling interests		(238)		(467)	(290)	(467)
Net income attributable to Noble Corporation		135,317		86,020	243,895	674,671
Net income per share
Basic		$ 0.53		$ 0.34	$ 0.96	$ 2.63
Diluted		$ 0.53		$ 0.34	$ 0.96	$ 2.62
Noble-Cayman [Member]
Operating revenues
Contract drilling services		704,892		584,919	1,837,047	2,081,075
Reimbursables		17,438		19,177	63,851	57,163
Labor contract drilling services		15,564		7,887	43,123	23,704
Other		8		635	766	1,449
Total operating revenues		737,902		612,618	1,944,787	2,163,391
Operating costs and expenses
Contract drilling services		349,626		315,787	980,662	839,652
Reimbursables		13,971		14,351	49,797	44,459
Labor contract drilling services		8,053		5,302	25,326	16,570
Depreciation and amortization		165,719		143,059	486,010	384,775
Selling, general and administrative		17,637		16,715	48,810	48,137
Gain on contract extinguishments, net					(21,202)
Total operating costs and expenses		555,006		495,214	1,569,403	1,333,593
Operating income		182,896		117,404	375,384	829,798
Other income (expense)
Interest expense, net of amount capitalized		(11,530)		(4,147)	(45,400)	(5,122)
Interest income and other, net		1,884		1,210	3,978	6,320
Income before income taxes		173,250		114,467	333,962	830,996
Income tax provision		(17,298)		(19,401)	(41,480)	(124,340)
Net income		155,952		95,066	292,482	706,656
Net income attributable to noncontrolling interests		(238)		(467)	(290)	(467)
Net income attributable to Noble Corporation		$ 155,714		$ 94,599	$ 292,192	$ 706,189

XML

Derivative Instruments and Hedging Activities (Details 1) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Short-term foreign currency forward contracts [Member] | Other current assets [Member]
Asset derivatives
Cash flow hedges, Short-term foreign currency forward contracts, Estimated fair value	$ 0	$ 2,015
Short-term foreign currency forward contracts [Member] | Other current assets [Member] | Non-designated derivatives [Member]
Asset derivatives
Non-designated derivatives, Short-term foreign currency forward contracts, Estimated fair value	0	2,603
Short-term foreign currency forward contracts [Member] | Other current liabilities [Member]
Asset derivatives
Fair value hedges, foreign currency forward contracts, estimated fair value	0	0
Liability derivatives
Cash flow hedges, Estimated fair value	(5,537)	412
Fair value hedges, foreign currency forward contracts, Estimated fair value	0	3,306
Short-term interest rate swaps [Member] | Other current liabilities [Member]
Liability derivatives
Cash flow hedges, Estimated fair value	0	15,697
Long-term interest rate swaps [Member] | Other liabilities [Member]
Liability derivatives
Cash flow hedges, Estimated fair value	$ 0	$ 10,893

XML

Net Change in Other Assets and Liabilities

9 Months Ended

Sep. 30, 2011

Net Change in Other Assets and Liabilities [Abstract]

Net Change in Other Assets and Liabilities

Note 16 — Net Change in Other Assets and Liabilities

The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:

	Noble-Swiss						Noble-Cayman
	Nine months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Accounts receivable	$	(213,747	)	$	250,917		$	(213,747	)	$	250,924
Other current assets		(23,900	)		(22,962	)		(20,578	)		(21,001	)
Other assets		(21,755	)		(6,600	)		(24,233	)		(6,705	)
Accounts payable		(23,744	)		(12,635	)		(23,654	)		(20,773	)
Other current liabilities		21,281			(9,105	)		13,655			(27,543	)
Other liabilities		33,566			28,258			33,540			28,482
	$	(228,299	)	$	227,873		$	(235,017	)	$	203,384

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2011	Oct. 28, 2011
Entity Registrant Name	Noble Corp / Switzerland
Entity Central Index Key	0001458891
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		252,437,480
Noble-Cayman [Member]
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		261,245,693

XML

Debt (Details Textuals) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended
	Apr. 30, 2011	Feb. 28, 2011	Mar. 31, 2011	Sep. 30, 2011 DebtAgreements JointVentures Phases Tranches Rigs LegalMatter	Sep. 30, 2010	Apr. 15, 2011
Debt Instrument [Line Items]
Targeted capacity of additional revolving credit				$ 1,200,000,000
Payment of debt		693,000,000	693,000,000
Line of Credit Facility [Line Items]
Borrowing capacity under revolving credit facilities				600,000,000
Debt (Textuals) [Abstract]
Number of revolving credit facility				2
Line of credit facility covenant terms				two separate revolving credit facilities in place which provide us with a total borrowing capacity of $1.2 billion. Our previously existing credit facility, which has a capacity of $600 million, matures in 2013, and during the first quarter of 2011, we entered into an additional $600 million revolving credit facility which matures in 2015 (together referred to as the “Credit Facilities”). The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits our ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60.
Maximum debt to tangible capitalization covenant				0.60
Letters of credit outstanding under credit facilities				0
Number of tranches				3
Proceeds from issuance of senior notes, net of debt issuance costs		1,090,000,000		1,087,833,000	1,238,074,000
Maturity date of revolving credit facility			Dec. 01, 2015
Equity contribution by joint venture partner			361,000,000	481,000,000	35,000,000
Debt instrument, face amount				70,000,000
Interest rate on senior notes				10.00%
Total capital contributed for converting notes into equity						146,000,000
Outstanding notes and accrued interest	142,000,000
Eliminated portion of capital contribution	73,000,000
5.875% Senior Notes due 2013 [Member]
Debt (Textuals) [Abstract]
Interest rate on senior notes				5.875%
7.375% Senior Notes due 2014 [Member]
Debt (Textuals) [Abstract]
Debt instrument, face amount		1,100,000,000
Interest rate on senior notes				7.375%
3.45% Senior Notes due 2015 [Member]
Debt (Textuals) [Abstract]
Interest rate on senior notes				3.45%
7.50% Senior Notes due 2019 [Member]
Debt (Textuals) [Abstract]
Interest rate on senior notes				7.50%
4.90% Senior Notes due 2020 [Member]
Debt (Textuals) [Abstract]
Interest rate on senior notes				4.90%
6.20% Senior Notes due 2040 [Member]
Debt (Textuals) [Abstract]
Interest rate on senior notes				6.20%
3.05% senior notes due 2016 [Member]
Debt (Textuals) [Abstract]
Debt instrument, face amount		300,000,000
Interest rate on senior notes		3.05%		3.05%
4.625% senior notes due 2021 [Member]
Debt (Textuals) [Abstract]
Debt instrument, face amount		400,000,000
Interest rate on senior notes		4.625%		4.625%
6.05% senior notes due 2041 [Member]
Debt (Textuals) [Abstract]
Debt instrument, face amount		400,000,000
Interest rate on senior notes		6.05%		6.05%
Wholly-owned debt instruments, Credit facilities [Member]
Debt Instrument [Line Items]
Targeted capacity of additional revolving credit				300,000,000
Borrowings outstanding				715,000,000
Joint Venture Partner Notes [Member]
Debt Instrument [Line Items]
Debt instrument interest rate terms				In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes is 10%, payable semi-annually in arrears and in kind on June 30 and December 31 commencing in June 2011.
Revolving credit facility which matures in 2015 [Member]
Line of Credit Facility [Line Items]
Borrowing capacity under revolving credit facilities			$ 600,000,000

XML

Acquisition of FDR Holdings Limited (Tables)

9 Months Ended

Sep. 30, 2011

Acquisition of FDR Holdings Limited [Abstract]

Pro forma financial information

The following unaudited pro forma financial information for the three and nine months ended September 30, 2010 gives effect to the Frontier acquisition as if it had occurred at January 1, 2009. The pro forma results are based on historical data and are not intended to be indicative of the results of future operations.

	Three months		Nine months
	ended		ended
	September 30, 2010		September 30, 2010
Total operating revenues	$	647,700	$	2,339,889
Net income		85,282		616,358
Net income per share	$	0.33	$	2.40

XML

Debt (Details 1) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
5.875% Senior Notes due 2013 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	$ 299,939	$ 299,911
Debt, Estimated Fair Value	323,731	324,281
7.375% Senior Notes due 2014 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	249,610	249,506
Debt, Estimated Fair Value	283,353	282,078
3.45% Senior Notes due 2015 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	350,000	350,000
Debt, Estimated Fair Value	365,503	357,292
3.05% senior notes due 2016 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	299,934	0
Debt, Estimated Fair Value	305,919	0
7.50% Senior Notes due 2019 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	201,695	201,695
Debt, Estimated Fair Value	250,238	242,464
4.90% Senior Notes due 2020 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	498,754	498,672
Debt, Estimated Fair Value	537,513	516,192
4.625% senior notes due 2021 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	399,469	0
Debt, Estimated Fair Value	420,987	0
6.20% Senior Notes due 2040 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	399,890	399,889
Debt, Estimated Fair Value	456,403	423,345
6.05% senior notes due 2041 [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	397,575	0
Debt, Estimated Fair Value	447,951	0
Wholly-owned debt instruments, Credit facilities [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	715,000	40,000
Debt, Estimated Fair Value	715,000	40,000
Joint Venture Credit Facilities [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	0	691,052
Debt, Estimated Fair Value	0	691,052
Joint Venture Partner Notes [Member]
Estimated fair value of our long-term debt
Debt, Carrying Value	0	35,972
Debt, Estimated Fair Value	$ 0	$ 35,972

XML

Property and Equipment

9 Months Ended

Sep. 30, 2011

Property and Equipment [Abstract]

Property and Equipment

Note 5 — Property and Equipment

Property and equipment, at cost, as of September 30, 2011 and December 31, 2010 consisted of the following:

	2011		2010
Drilling equipment and facilities	$	9,908,049	$	8,900,266
Construction in progress		4,318,705		3,571,017
Other		193,513		172,583
	$	14,420,267	$	12,643,866

Capital expenditures, including capitalized interest, totaled $2.0 billion and $886 million for the nine months ended September 30, 2011 and 2010, respectively. Capital expenditures for 2010 do not include the fair value of assets acquired as part of the Frontier acquisition. Capital expenditures for 2011 consisted of the following:

• $1.3 billion for newbuild construction;

• $463 million for major projects, including $130 million to upgrade two drillships currently operating in Brazil;

• $156 million for other capitalized expenditures, including major maintenance and regulatory expenditures which generally have useful lives ranging from 3 to 5 years; and

• $88 million in capitalized interest.

Interest is capitalized on construction-in-progress at the weighted average cost of debt outstanding during the period of construction. Capitalized interest was $32 million and $88 million for the three and nine months ended September 30, 2011, respectively, as compared to $25 million and $51 million for the three and nine months ended September 30, 2010, respectively.

XML

Share Data (Tables)

9 Months Ended

Sep. 30, 2011

Earnings Per Share[Abstract]

Noble-Swiss' share capital

The following is a detail of Noble-Swiss’ share capital as of September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Shares outstanding and trading		252,433		252,275
Treasury shares		285		10,140
Total shares outstanding		252,718		262,415
Treasury shares held for share-based compensation plans		13,432		13,851
Total shares authorized for issuance		266,150		276,266
Par value per share (in Swiss Francs)		3.54		3.93

Computation of basic and diluted net income per share for Noble-Swiss

The following table sets forth the computation of basic and diluted earnings per share for Noble-Swiss:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Allocation of net income
Basic
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,415	)		(828	)		(2,487	)		(6,416	)
Net income to common shareholders — basic	$	133,902		$	85,192		$	241,408		$	668,255
Diluted
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,412	)		(825	)		(2,481	)		(6,394	)
Net income to common shareholders — diluted	$	133,905		$	85,195		$	241,414		$	668,277
Weighted average shares outstanding — basic		251,580			252,513			251,327			253,944
Incremental shares issuable from assumed exercise of stock options		449			671			640			855
Weighted average shares outstanding — diluted		252,029			253,184			251,967			254,799
Weighted average unvested share-based payment awards		2,658			2,453			2,589			2,438
Earnings per share
Basic	$	0.53		$	0.34		$	0.96		$	2.63
Diluted	$	0.53		$	0.34		$	0.96		$	2.62

XML

Property and Equipment (Details Textuals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011 DebtAgreements JointVentures Phases Tranches Rigs	Sep. 30, 2010
Property and Equipment (Textuals) [Abstract]
Capital expenditure			$ 2,000,000,000	$ 886,000,000
New construction			1,300,000,000
Other capital expenditure			156,000,000
Amount included in capital expenditure for major project upgrades			463,000,000
Amount included in other capital expenditure for upgrading drillships			130,000,000
Number of drillships operating under contracts in Brazil			2
Major capitalized expenditure useful life minimum			3 years
Major capitalized expenditure useful life maximum			5 years
Capitalized Interest			88,000,000
Capitalized interest on construction in progress	$ 32,000,000	$ 25,000,000	$ 88,000,000	$ 51,000,000

XML

Consolidated Joint Ventures (Details) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended
	Feb. 28, 2011	Jan. 31, 2011	Mar. 31, 2011	Sep. 30, 2011 DebtAgreements JointVentures Phases Tranches Rigs LegalMatter	Sep. 30, 2010	Apr. 30, 2011
Consolidated Joint Ventures (Textuals) [Abstract]
Percent of Interest in Joint ventures				50.00%
Number of joint ventures acquired				2
Number of bully class drillships				2
Contributions from joint venture partners			$ 361,000,000	$ 481,000,000	$ 35,000,000
Payment of debt	693,000,000		693,000,000
Proceeds from issuance of notes to joint venture partners		70,000,000
Percent of interest rates in issued notes				10.00%
Carrying amount of the drillships				1,300,000,000
Combined Joint Venture partner debt						146,000,000
Company's portion of joint venture partner debt						73,000,000
Outstanding notes related to joint venture						142,000,000
Total capital contributed under capital contribution agreements				170,000,000
Capital call on joint venture						360,000,000
Additional capital contributed				$ 60,000,000

XML

Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2011

Accounting Pronouncements [Abstract]

Adoption of policies related to recognition of revenue in multi-deliverable arrangements and its impact

In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple-deliverable arrangements. The guidance establishes a selling-price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to multiple-deliverable arrangements and to align the accounting with the underlying economics of the multiple-deliverable transaction. This guidance is effective for fiscal years beginning on or after June 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

Adoption of policies regarding disclosure of the fair value of assets and its impact

In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in the roll-forward activity in Level 3 fair value measurements were deferred until fiscal years beginning after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In May 2011, the FASB issued guidance that modified the wording used to describe many of the requirements in accounting literature for measuring fair value and for disclosing information about fair value measurements. The goal of the amendment is to create consistency between the United States and international accounting standards. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance should not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

Business combination policy

In December 2010, the FASB issued guidance that requires a public entity to disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable prior annual reporting period. The guidance is effective for annual reporting periods beginning on or after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

Comprehensive income

In June 2011, the FASB issued guidance that allows an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment no longer allows an entity to show changes to other comprehensive income solely through the statement of equity. For publicly traded entities, the guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance will not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

XML

Employee Benefit Plans

9 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 10 — Employee Benefit Plans

Pension costs include the following components:

	Three Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	1,141		$	2,152		$	1,045		$	1,912
Interest cost		1,433			2,143			1,224			1,957
Return on plan assets		(1,449	)		(2,768	)		(1,331	)		(2,392	)
Amortization of prior service cost		—			57			—			57
Amortization of transition obligation		19			—			17			—
Recognized net actuarial loss		123			844			181			705
Net pension expense	$	1,267		$	2,428		$	1,136		$	2,239

	Nine Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	3,387		$	6,456		$	3,211		$	5,736
Interest cost		4,256			6,428			3,694			5,871
Return on plan assets		(4,306	)		(8,304	)		(3,999	)		(7,176	)
Amortization of prior service cost		—			170			—			171
Amortization of transition obligation		56			—			53			—
Recognized net actuarial loss		366			2,531			537			2,115
Net pension expense	$	3,759		$	7,281		$	3,496		$	6,717

During the nine months ended September 30, 2011 and 2010, we made contributions to our pension plans totaling $7 million and $15 million, respectively. We expect the funding to our non-U.S. and U.S. plans in 2011, subject to applicable law, to be approximately $11 million.

We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (“Restoration Plan”). The Restoration Plan is a nonqualified, unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment income and, conversely, we benefit should phantom investment losses occur. At September 30, 2011 and December 31, 2010, our liability under the Restoration Plan totaled $5 million and $7 million, respectively. We have purchased investments that closely correlate to the investment elections made by participants in the Restoration Plan in order to mitigate the impact of the phantom investment income and losses on our financial statements. The value of these investments held for our benefit totaled $4 million and $7 million at September 30, 2011 and December 31, 2010, respectively.

XML

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2011

Organization and Basis of Presentation [Abstract]

Organization and Basis of Presentation

Note 1 — Organization and Basis of Presentation

Noble Corporation, a Swiss corporation, is a leading offshore drilling contractor for the oil and gas industry. At September 30, 2011, our fleet consisted of 79 mobile offshore drilling units located worldwide as follows: 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Additionally, we have one floating production storage and offloading unit (“FPSO”). At September 30, 2011, we had 13 units under construction as follows:

• seven dynamically positioned, ultra-deepwater, harsh environment drillships, including two Globetrotter-class drillships and one Bully-class drillship, and

• six high-specification heavy duty, harsh environment jackup rigs.

Our global fleet is currently located in the following areas: the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian Pacific. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921.

Noble-Cayman is a direct, wholly-owned subsidiary of Noble-Swiss, our publicly-traded parent company. Noble-Swiss’ principal asset is all of the shares of Noble-Cayman. Noble-Cayman has no public equity outstanding. The consolidated financial statements of Noble-Swiss include the accounts of Noble-Cayman, and Noble-Swiss conducts substantially all of its business through Noble-Cayman and its subsidiaries.

The accompanying unaudited consolidated financial statements of Noble-Swiss and Noble-Cayman have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) as they pertain to Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal recurring nature. The December 31, 2010 Consolidated Balance Sheets presented herein are derived from the December 31, 2010 audited consolidated financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2010, filed by both Noble-Swiss and Noble-Cayman. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Certain amounts in prior periods have been reclassified to conform to the current year presentation. Taxes payable in the December 31, 2010 Consolidated Balance Sheets was reported net of approximately $81 million in taxes receivable. During the second quarter of 2011, we determined that a right of offset in certain taxable jurisdictions did not exist for these receivables, and they are now being disclosed separately as a current asset. For the December 31, 2010 Consolidated Balance Sheets presented herein, these amounts have been reclassified to conform to the current year presentation. We believe that this reclassification is immaterial, as it did not have a material impact on our financial position, working capital, results of operations or cash flows from operations.

XML

Guarantees of Registered Securities (Tables)

9 Months Ended

Sep. 30, 2011

Guarantees of Registered Securities [Abstract]

Condensed Financial Statements

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	—	$	292		$	—		$	—	$	—	$	191,713		$	—		$	192,005
Accounts receivable		—		10,757			3,472			—		—		586,932			—			601,161
Prepaid expenses		—		400			10			—		—		57,121			—			57,531
Short-term notes receivable from affiliates		—		119,476			—			—		—		110,000			(229,476	)		—
Accounts receivable from affiliates		1,182,035		92,282			847,880			150,144		15,737		5,705,679			(7,993,757	)		—
Other current assets		—		6,247			240			—		—		133,538			—			140,025
Total current assets		1,182,035		229,454			851,602			150,144		15,737		6,784,983			(8,223,233	)		990,722
Property and equipment
Drilling equipment, facilities and other		—		2,374,299			71,567			—		—		11,940,555			—			14,386,421
Accumulated depreciation		—		(207,832	)		(52,334	)		—		—		(2,734,320	)		—			(2,994,486	)
Total property and equipment, net		—		2,166,467			19,233			—		—		9,206,235			—			11,391,935
Notes receivable from affiliates		3,487,062		675,000			—			2,336,527		572,107		2,662,901			(9,733,597	)		—
Investments in affiliates		7,185,905		9,133,639			3,510,041			6,370,565		1,899,939		—			(28,100,089	)		—
Other assets		3,660		15,933			2,067			19,087		910		487,484			—			529,141
Total assets	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	60,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(229,476	)	$	—
Accounts payable and accrued liabilities		6,298		24,036			8,116			15,201		630		580,143			—			634,424
Accounts payable to affiliates		1,802,030		3,806,799			26,056			99,896		30,916		2,228,060			(7,993,757	)		—
Total current liabilities		1,868,328		3,880,835			34,172			115,097		31,546		2,927,679			(8,223,233	)		634,424
Long-term debt		1,014,939		—			—			2,595,232		201,695		—			—			3,811,866
Notes payable to affiliates		1,652,000		1,147,500			85,000			975,000		811,000		5,063,097			(9,733,597	)		—
Other liabilities		19,929		24,291			30,177			—		—		443,751			—			518,148
Total liabilities		4,555,196		5,052,626			149,349			3,685,329		1,044,241		8,434,527			(17,956,830	)		4,964,438
Commitments and contingencies
Equity		7,303,466		7,167,867			4,233,594			5,190,994		1,444,452		10,707,076			(28,100,089	)		7,947,360
Total liabilities and equity	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2010
(in thousands)

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	42	$	146		$	—		$	—	$	—	$	333,211		$	—		$	333,399
Accounts receivable		—		6,984			1,795			—		—		378,635			—			387,414
Prepaid expenses		—		310			—			—		—		32,922			—			33,232
Short-term notes receivable from affiliates		—		119,476			—			—		—		75,000			(194,476	)		—
Accounts receivable from affiliates		614,264		73,001			751,623			219,215		11,374		3,801,852			(5,471,329	)		—
Other current assets		—		16,735			240			—		—		133,912			—			150,887
Total current assets		614,306		216,652			753,658			219,215		11,374		4,755,532			(5,665,805	)		904,932
Property and equipment
Drilling equipment, facilities and other		—		1,254,482			70,945			—		—		11,289,547			—			12,614,974
Accumulated depreciation		—		(153,638	)		(50,250	)		—		—		(2,391,066	)		—			(2,594,954	)
Total property and equipment, net		—		1,100,844			20,695			—		—		8,898,481			—			10,020,020
Notes receivable from affiliates		3,507,062		675,000			—			1,239,600		479,107		2,492,900			(8,393,669	)		—
Investments in affiliates		6,835,466		9,150,129			3,561,451			5,618,248		1,879,831		—			(27,045,125	)		—
Other assets		1,872		7,700			2,451			11,336		1,001		318,232			—			342,592
Total assets	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	25,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(194,476	)	$	—
Current maturities of long-term debt		—		—			—			—		—		80,213			—			80,213
Accounts payable and accrued liabilities		1,473		19,218			8,779			31,973		4,413		647,488			—			713,344
Accounts payable to affiliates		1,601,869		2,708,598			30,095			64,192		7,134		1,059,441			(5,471,329	)		—
Total current liabilities		1,628,342		2,777,816			38,874			96,165		11,547		1,906,618			(5,665,805	)		793,557
Long-term debt		339,911		—			—			1,498,066		201,695		646,812			—			2,686,484
Notes payable to affiliates		1,834,500		1,092,000			120,000			550,000		811,000		3,986,169			(8,393,669	)		—
Other liabilities		19,929		48,595			25,485			—		—		432,839			—			526,848
Total liabilities		3,822,682		3,918,411			184,359			2,144,231		1,024,242		6,972,438			(14,059,474	)		4,006,889
Commitments and contingencies
Equity		7,136,024		7,231,914			4,153,896			4,944,168		1,347,071		9,492,707			(27,045,125	)		7,260,655
Total liabilities and equity	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	38,955		$	5,105		$	—		$	—		$	680,617		$	(19,785	)	$	704,892
Reimbursables		—			691			—			—			—			16,747			—			17,438
Labor contract drilling services		—			4			—			—			—			15,560			—			15,564
Other		—			—			—			—			—			8			—			8
Total operating revenues		—			39,650			5,105			—			—			712,932			(19,785	)		737,902
Operating costs and expenses
Contract drilling services		1,759			10,485			1,883			9,819			—			345,465			(19,785	)		349,626
Reimbursables		—			420			—			—			—			13,551			—			13,971
Labor contract drilling services		—			—			—			—			—			8,053			—			8,053
Depreciation and amortization		—			13,138			937			—			—			151,644			—			165,719
Selling, general and administrative		2,094			1,488			—			9,253			—			4,802			—			17,637
Gain on contract extinguishments, net		—			—			—			—			—			—			—			—
Total operating costs and expenses		3,853			25,531			2,820			19,072			—			523,515			(19,785	)		555,006
Operating income (loss)		(3,853	)		14,119			2,285			(19,072	)		—			189,417			—			182,896
Other income (expense)
Equity earnings in affiliates, net of tax		174,673			226,079			45,818			172,153			(20,624	)		—			(598,099	)		—
Interest expense, net of amounts capitalized		(16,721	)		(15,612	)		(1,285	)		(21,641	)		(7,106	)		(267	)		51,102			(11,530	)
Interest income and other, net		1,615			6,906			(40	)		15,813			2,277			26,415			(51,102	)		1,884
Income before income taxes		155,714			231,492			46,778			147,253			(25,453	)		215,565			(598,099	)		173,250
Income tax provision		—			487			—			—			—			(17,785	)		—			(17,298	)
Net Income		155,714			231,979			46,778			147,253			(25,453	)		197,780			(598,099	)		155,952
Net loss attributable to noncontrolling interests		—			—			—			—			—			(238	)		—			(238	)
Net income attributable to Noble Corporation	$	155,714		$	231,979		$	46,778		$	147,253		$	(25,453	)	$	197,542		$	(598,099	)	$	155,714

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	100,009		$	14,800		$	—		$	—		$	1,770,356		$	(48,118	)	$	1,837,047
Reimbursables		—			3,381			12			—			—			60,458			—			63,851
Labor contract drilling services		—			4			—			—			—			43,119			—			43,123
Other		—			—			—			—			—			766			—			766
Total operating revenues		—			103,394			14,812			—			—			1,874,699			(48,118	)		1,944,787
Operating costs and expenses
Contract drilling services		4,818			31,554			5,681			26,625			—			960,102			(48,118	)		980,662
Reimbursables		—			3,331			—			—			—			46,466			—			49,797
Labor contract drilling services		—			—			—			—			—			25,326			—			25,326
Depreciation and amortization		—			36,330			2,781			—			—			446,899			—			486,010
Selling, general and administrative		5,397			4,206			—			24,756			1			14,450			—			48,810
Gain on contract extinguishments, net					—			—			—			—			(21,202	)		—			(21,202	)
Total operating costs and expenses		10,215			75,421			8,462			51,381			1			1,472,041			(48,118	)		1,569,403
Operating income (loss)		(10,215	)		27,973			6,350			(51,381	)		(1	)		402,658			—			375,384
Other income (expense)
Equity earnings in affiliates, net of tax		350,439			328,452			80,795			344,524			86,932			—			(1,191,142	)		—
Interest expense, net of amounts capitalized		(52,985	)		(45,527	)		(4,824	)		(67,667	)		(22,048	)		(3,284	)		150,935			(45,400	)
Interest income and other, net		4,953			19,376			8			38,557			6,321			85,698			(150,935	)		3,978
Income before income taxes		292,192			330,274			82,329			264,033			71,204			485,072			(1,191,142	)		333,962
Income tax provision		—			6,287			—			—			—			(47,767	)		—			(41,480	)
Net Income		292,192			336,561			82,329			264,033			71,204			437,305			(1,191,142	)		292,482
Net loss attributable to noncontrolling interests		—			—			—			—			—			(290	)		—			(290	)
Net income attributable to Noble Corporation	$	292,192		$	336,561		$	82,329		$	264,033		$	71,204		$	437,015		$	(1,191,142	)	$	292,192

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	23,724		$	5,363		$	—		$	—		$	565,132		$	(9,300	)	$	584,919
Reimbursables		—			388			—			—			—			18,789			—			19,177
Labor contract drilling services		—			—			—			—			—			7,887			—			7,887
Other		—			(107	)		—			—			—			742			—			635
Total operating revenues		—			24,005			5,363			—			—			592,550			(9,300	)		612,618
Operating costs and expenses
Contract drilling services		18,924			8,475			1,657			—			—			296,031			(9,300	)		315,787
Reimbursables		—			127			—			—			—			14,224			—			14,351
Labor contract drilling services		—			—			—			—			—			5,302			—			5,302
Depreciation and amortization		—			9,494			924			—			—			132,641			—			143,059
Selling, general and administrative		—			605			94			(63	)		—			16,079			—			16,715
Total operating costs and expenses		18,924			18,701			2,675			(63	)		—			464,277			(9,300	)		495,214
Operating income (loss)		(18,924	)		5,304			2,688			63			—			128,273			—			117,404
Other income (expense)
Equity earnings in affiliates, net of tax		124,218			155,504			38,484			136,039			35,842			—			(490,087	)		—
Interest expense, net of amounts capitalized		(12,251	)		(14,845	)		(1,859	)		(12,645	)		(1,424	)		(2,668	)		41,545			(4,147	)
Interest income and other, net		1,556			555			—			8,419			2,221			30,004			(41,545	)		1,210
Income before income taxes		94,599			146,518			39,313			131,876			36,639			155,609			(490,087	)		114,467
Income tax provision		—			(18,445	)		—			—			—			(956	)					(19,401	)
Net Income		94,599			128,073			39,313			131,876			36,639			154,653			(490,087	)		95,066
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	94,599		$	128,073		$	39,313		$	131,876		$	36,639		$	154,186		$	(490,087	)	$	94,599

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	72,313		$	12,847		$	—		$	—		$	2,026,515		$	(30,600	)	$	2,081,075
Reimbursables		—			978			61			—			—			56,124			—			57,163
Labor contract drilling services		—			—			—			—			—			23,704			—			23,704
Other		—			5			—			—			—			1,444			—			1,449
Total operating revenues		—			73,296			12,908			—			—			2,107,787			(30,600	)		2,163,391
Operating costs and expenses
Contract drilling services		18,931			27,082			4,793			—			—			819,446			(30,600	)		839,652
Reimbursables		—			1,226			61			—			—			43,172			—			44,459
Labor contract drilling services		—			—			—			—			—			16,570			—			16,570
Depreciation and amortization		—			27,321			2,536			—			—			354,918			—			384,775
Selling, general and administrative		—			51,241			315			56			—			(3,475	)		—			48,137
Total operating costs and expenses		18,931			106,870			7,705			56			—			1,230,631			(30,600	)		1,333,593
Operating income (loss)		(18,931	)		(33,574	)		5,203			(56	)		—			877,156			—			829,798
Other income (expense)
Equity earnings in affiliates, net of tax		732,956			497,191			47,602			768,130			336,350			—			(2,382,229	)		—
Interest expense, net of amounts capitalized		(12,838	)		(50,179	)		(5,516	)		(32,010	)		(1,424	)		(8,852	)		105,697			(5,122	)
Interest income and other, net		5,002			23,312			—			8,419			8,373			66,911			(105,697	)		6,320
Income before income taxes		706,189			436,750			47,289			744,483			343,299			935,215			(2,382,229	)		830,996
Income tax provision		—			(27,537	)		—			—			—			(96,803	)		—			(124,340	)
Net Income		706,189			409,213			47,289			744,483			343,299			838,412			(2,382,229	)		706,656
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	706,189		$	409,213		$	47,289		$	744,483		$	343,299		$	837,945		$	(2,382,229	)	$	706,189

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(40,060	)	$	23,345		$	7,041		$	(105,014	)	$	(19,420	)	$	636,982		$	—		$	502,874
Cash flows from investing activities
New construction and capital expenditures		—			(1,124,826	)		—			—			—			(906,990	)		—			(2,031,816	)
Notes receivable from affiliates		20,000			—			—			(1,096,927	)		—			200,000			876,927			—
Refund from contract extinguishments		—			—			—			—			—			18,642			—			18,642
Net cash from investing activities		20,000			(1,124,826	)		—			(1,096,927	)		—			(688,348	)		876,927			(2,013,174	)
Cash flows from financing activities
Increase in bank credit facilities, net		675,000			—			—			—			—			—			—			675,000
Proceeds from issuance of senior notes, net		—			—			—			1,087,833			—			—			—			1,087,833
Contributions from joint venture partners		—			—			—			—			—			481,000			—			481,000
Payments of joint venture debt		—			—			—			—			—			(693,494	)		—			(693,494	)
Settlement of interest rate swaps		—			—			—			—			—			(29,032	)		—			(29,032	)
Financing cost on credit facilities		(2,835	)		—			—			—			—			—			—			(2,835	)
Distributions to parent		(149,566	)		—			—			—			—			—			—			(149,566	)
Advances (to) from affiliates		(355,081	)		1,119,127			27,959			114,108			19,420			(925,533	)		—			—
Notes payable to affiliates		(147,500	)		(17,500	)		(35,000	)		—			—			1,076,927			(876,927	)		—
Net cash from financing activities		20,018			1,101,627			(7,041	)		1,201,941			19,420			(90,132	)		(876,927	)		1,368,906
Net change in cash and cash equivalents		(42	)		146			—			—			—			(141,498	)		—			(141,394	)
Cash and cash equivalents, beginning of period		42			146			—			—			—			333,211			—			333,399
Cash and cash equivalents, end of period	$	—		$	292		$	—		$	—		$	—		$	191,713		$	—		$	192,005

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(6,194	)	$	(57,507	)	$	(3,907	)	$	(26,975	)	$	3,258		$	1,372,073		$	—		$	1,280,748
Cash flows from investing activities
New construction and capital expenditures		—			(381,928	)		—			—			—			(499,482	)		—			(881,410	)
Notes receivable from affiliates		—			—			—			(1,239,600	)		—			(490,000	)		1,729,600			—
Acquisition of FDR Holdings, Ltd., net of cash acquired		(1,629,644	)		—			—			—			—			—			—			(1,629,644	)
Net cash from investing activities		(1,629,644	)		(381,928	)		—			(1,239,600	)		—			(989,482	)		1,729,600			(2,511,054	)
Cash flows from financing activities
Proceeds from issuance of senior notes, net		—			—			—			1,238,074			—			—			—			1,238,074
Contributions from joint venture partners		—			—			—			—			—			35,000			—			35,000
Settlement of interest rate swaps		—			—			—			—			—			(2,041	)		—			(2,041	)
Distributions to parent		(422,537	)																				(422,537	)
Advances (to) from affiliates		328,813			439,401			3,907			28,501			(3,258	)		(797,364	)		—			—
Notes payable to affiliates		1,729,600			—			—			—			—			—			(1,729,600	)		—
Net cash from financing activities		1,635,876			439,401			3,907			1,266,575			(3,258	)		(764,405	)		(1,729,600	)		848,496
Net change in cash and cash equivalents		38			(34	)		—			—			—			(381,814	)		—			(381,810	)
Cash and cash equivalents, beginning of period		3			268			—			—			—			725,954						726,225
Cash and cash equivalents, end of period	$	41		$	234		$	—		$	—		$	—		$	344,140		$	—		$	344,415

XML

Receivables from Customers

9 Months Ended

Sep. 30, 2011

Receivables from Customers [Abstract]

Receivables from Customers

Note 7 — Receivables from Customers

As noted in Note 13, in May 2010 Anadarko Petroleum Corporation (“Anadarko”) sent a letter asserting that the initial attempted deepwater drilling moratorium in the U.S. Gulf of Mexico was an event of force majeure under the drilling contract for the Noble Amos Runner. In June 2010, Anadarko filed a declaratory judgment action in Federal District Court in Houston, Texas seeking to have the court declare that a force majeure condition had occurred and that the drilling contract was terminated by virtue of the initial proclaimed moratorium. We disagree that a force majeure event occurred and that Anadarko had the right to terminate the contract. In August 2010, we filed a counterclaim seeking damages from Anadarko for breach of contract. Anadarko has also attempted to offset revenue that we had billed for services performed prior to their termination of the contract. At September 30, 2011, we had accounts receivable of approximately $13 million related to this attempted offset. We do not believe Anadarko has a basis to offset these invoiced amounts. While we will continue to litigate the matter to full resolution, we can make no assurances as to the outcome of this dispute.

In June 2010, a subsidiary of Frontier entered into a charter contract with a subsidiary of BP PLC (“BP”) for the Seillean with a term of a minimum of 100 days. The unit went on hire on July 23, 2010. In October 2010, BP initiated an arbitration proceeding against us claiming the contract was void ab initio, or never existed, due to a fundamental breach and has made other claims and is demanding that we reimburse the amounts already paid to us under the charter. We believe BP owes us the amounts due under the charter. The charter contains a “hell or high water” provision requiring payment, and we believe we have satisfied our obligations under the charter. Outstanding receivables related to this charter totaled $35 million as of September 30, 2011. We believe that if BP were to be successful in claiming the contract void ab initio, we would have an indemnity claim against the former shareholders of Frontier. We have put the former owners of Frontier on notice of this potential claim. We can make no assurances as to the outcome of this dispute.

At September 30, 2011, we had accounts receivable of approximately $14 million related to the Noble Max Smith which are being disputed by our customer, Pemex Exploracion y Produccion (“Pemex”). The disputed amount relates to lost revenues due from Pemex for downtime that occurred when our rig was damaged after one of Pemex’s supply boats collided with our rig. While we believe we are entitled to the disputed amounts, we can make no assurances as to the outcome of this dispute.

XML

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 12 — Fair Value of Financial Instruments

The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:

	September 30, 2011										December 31, 2010
				Estimated Fair Value Measurements
				Quoted		Significant
				Prices in		Other			Significant
				Active		Observable			Unobservable
	Carrying			Markets		Inputs			Inputs		Carrying		Estimated
	Amount			(Level 1)		(Level 2)			(Level 3)		Amount		Fair Value
Assets —
Marketable securities	$	4,294		$	4,294	$	—		$	—	$	6,854	$	6,854
Foreign currency forward contracts		—			—		—			—		4,618		4,618
Firm commitment		—			—		—			—		3,306		3,306
Liabilities —
Interest rate swaps	$	—		$	—	$	—		$	—	$	26,590	$	26,590
Foreign currency forward contracts		(5,537	)		—		(5,537	)		—		3,718		3,718

The derivative instruments have been valued using actively quoted prices and quotes obtained from the counterparties to the derivative instruments. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in the accompanying Consolidated Balance Sheets approximate fair value.

XML

Debt

9 Months Ended

Sep. 30, 2011

Debt [Abstract]

Debt

Note 8 — Debt

Total debt consisted of the following at September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Wholly-owned debt instruments:
5.875% Senior Notes due 2013	$	299,939	$	299,911
7.375% Senior Notes due 2014		249,610		249,506
3.45% Senior Notes due 2015		350,000		350,000
3.05% Senior Notes due 2016		299,934		—
7.50% Senior Notes due 2019		201,695		201,695
4.90% Senior Notes due 2020		498,754		498,672
4.625% Senior Notes due 2021		399,469		—
6.20% Senior Notes due 2040		399,890		399,889
6.05% Senior Notes due 2041		397,575		—
Credit facilities		715,000		40,000
Consolidated joint venture debt instruments:
Joint venture credit facilities	$	—	$	691,052
Joint venture partner notes		—		35,972
Total Debt		3,811,866		2,766,697
Less: Current Maturities		—		(80,213	)
Long-term Debt	$	3,811,866	$	2,686,484

We have two separate revolving credit facilities in place which provide us with a total borrowing capacity of $1.2 billion. One credit facility, which has a capacity of $600 million, matures in 2013, and during the first quarter of 2011, we entered into an additional $600 million revolving credit facility which matures in 2015 (together referred to as the “Credit Facilities”). The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits our ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60. We were in compliance with all covenants as of September 30, 2011.

The Credit Facilities provide us with the ability to issue up to $300 million in letters of credit in the aggregate. While the issuance of letters of credit does not increase our borrowings outstanding under the Credit Facilities, it does reduce the amount available. At September 30, 2011, we had borrowings of $715 million outstanding and no letters of credit outstanding under the Credit Facilities.

In February 2011, we issued through our indirect wholly-owned subsidiary, Noble Holding International Limited (“NHIL”), $1.1 billion aggregate principal amount of senior notes in three separate tranches, comprising $300 million of 3.05% Senior Notes due 2016, $400 million of 4.625% Senior Notes due 2021, and $400 million of 6.05% Senior Notes due 2041. A portion of the net proceeds of approximately $1.09 billion, after expenses, was used to repay the outstanding balance on our revolving credit facility and to repay our portion of outstanding debt under the joint venture credit facilities discussed below.

In the first quarter of 2011, the joint venture credit facilities, which had a combined outstanding balance of $693 million, were repaid in full through contributions to the joint ventures from Noble and Shell. Shell contributed $361 million in equity to fund their portion of the repayment of joint venture credit facilities and related interest rate swaps, which were settled concurrent with the repayment and termination of the joint venture credit facilities.

In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes was 10%, payable semi-annually in arrears, and in kind, on June 30 and December 31 commencing in June 2011. The purpose of these notes was to provide additional liquidity to the joint ventures in connection with the shipyard construction of the Bully vessels.

In April 2011, the Bully joint venture partners entered into a subscription agreement, pursuant to which each partner was issued equity in each of the Bully joint ventures in exchange for the cancellation of all outstanding joint venture partner notes. The subscription agreement has the effect of converting all joint venture partner notes into equity of the respective joint venture. The total capital contributed as a result of these agreements was $146 million, which included $142 million in outstanding notes, plus accrued interest. Our portion of the capital contribution, totaling $73 million, was eliminated in consolidation.

Fair Value of Debt

Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The estimated fair value of our senior notes was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar remaining maturities. The following table presents the estimated fair value of our long-term debt as of September 30, 2011 and December 31, 2010.

	September 30, 2011				December 31, 2010
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Wholly-owned debt instruments
5.875% Senior Notes due 2013	$	299,939	$	323,731	$	299,911	$	324,281
7.375% Senior Notes due 2014		249,610		283,353		249,506		282,078
3.45% Senior Notes due 2015		350,000		365,503		350,000		357,292
3.05% Senior Notes due 2016		299,934		305,919		—		—
7.50% Senior Notes due 2019		201,695		250,238		201,695		242,464
4.90% Senior Notes due 2020		498,754		537,513		498,672		516,192
4.625% Senior Notes due 2021		399,469		420,987		—		—
6.20% Senior Notes due 2040		399,890		456,403		399,889		423,345
6.05% Senior Notes due 2041		397,575		447,951		—		—
Credit facilities		715,000		715,000		40,000		40,000
Consolidated joint venture debt instruments
Joint venture credit facilities		—		—		691,052		691,052
Joint venture partner notes		—		—		35,972		35,972

XML

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Abstract]

Carrying amount and estimated fair value of financial instruments

The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:

	September 30, 2011										December 31, 2010
				Estimated Fair Value Measurements
				Quoted		Significant
				Prices in		Other			Significant
				Active		Observable			Unobservable
	Carrying			Markets		Inputs			Inputs		Carrying		Estimated
	Amount			(Level 1)		(Level 2)			(Level 3)		Amount		Fair Value
Assets —
Marketable securities	$	4,294		$	4,294	$	—		$	—	$	6,854	$	6,854
Foreign currency forward contracts		—			—		—			—		4,618		4,618
Firm commitment		—			—		—			—		3,306		3,306
Liabilities —
Interest rate swaps	$	—		$	—	$	—		$	—	$	26,590	$	26,590
Foreign currency forward contracts		(5,537	)		—		(5,537	)		—		3,718		3,718

XML

Gain on contract extinguishments, net

9 Months Ended

Sep. 30, 2011

Gain on contract extinguishments, net [Abstract]

Gain on contract extinguishments, net

Note 6 — Gain on contract extinguishments, net

In January 2011, we announced the signing of a Memorandum of Understanding (“MOU”) with Petroleo Brasileiro S.A. (“Petrobras”) regarding operations in Brazil. Under the terms of the MOU, we agreed to substitute the Noble Phoenix, then under contract with Shell in Southeast Asia, for the Noble Muravlenko. In January 2011, Shell agreed to release the Noble Phoenix from its contract, which was effective in March 2011. During the second quarter of 2011, Petrobras formally approved the rig substitution. We expect that acceptance of the Noble Phoenix will take place in the first quarter of 2012. In connection with the cancelation of the contract with Shell on the Noble Phoenix, we recognized a non-cash gain of approximately $52.5 million during the first quarter of 2011, which represented the unamortized fair value of the in-place contract assumed in connection with the Frontier acquisition.

Also in January 2011, as a result of the substitution discussed above, we reached a decision not to proceed with the previously announced reliability upgrade to the Noble Muravlenko that was scheduled to take place in 2013. As a result, we incurred a non-cash charge of approximately $32.6 million related to the termination of outstanding shipyard contracts.

In February 2011, the outstanding balances of the Bully joint venture credit facilities, which totaled $693 million, were repaid in full and the credit facilities terminated using a portion of the proceeds from our February 2011 debt offering and equity contributions from our joint venture partner. In addition, the related interest rate swaps were settled and terminated concurrent with the repayment and termination of the credit facilities. As a result of these transactions, we recognized a gain of approximately $1.3 million during the first quarter of 2011.

XML

Derivative Instruments and Hedging Activities (Details) (USD $) In Thousands	3 Months Ended	9 Months Ended				3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Jun. 30, 2011	Sep. 30, 2011 Forward Contracts [Member]	Sep. 30, 2011 Forward Contracts [Member] Cash flow hedges [Member]	Sep. 30, 2010 Forward Contracts [Member] Cash flow hedges [Member]	Sep. 30, 2011 Forward Contracts [Member] Cash flow hedges [Member]	Sep. 30, 2010 Forward Contracts [Member] Cash flow hedges [Member]	Sep. 30, 2010 Swap [Member] Cash flow hedges [Member]	Sep. 30, 2011 Swap [Member] Cash flow hedges [Member]	Sep. 30, 2010 Swap [Member] Cash flow hedges [Member]
Net unrealized gain/(loss) related to forward contracts included through AOCI
Net unrealized gain/(loss) at beginning of period	$ (2,517)	$ 1,970	$ 417	$ 4,117	$ 6,000
Activity during period:
Cash flow hedges, settlement, during the period						(2,054)	1,395	(1,604)	(417)		366
Net unrealized gain/(loss) on outstanding foreign currency forward contracts						(7,600)	3,367	(5,537)	2,245
Net unrealized gain/(loss) on outstanding interest rate swaps	(7,586)	(366)	(7,586)							(7,586)		(7,586)
Net unrealized gain/(loss) at end of period	$ (5,341)	$ (5,537)	$ (5,341)	$ 4,117	$ 6,000

XML

Consolidated Statement of Equity (Unaudited) (USD $) In Thousands	Total	Noble-Cayman [Member]	Shares	Shares Noble-Cayman [Member]	Additional Paid-in Capital	Additional Paid-in Capital Noble-Cayman [Member]	Retained Earnings	Retained Earnings Noble-Cayman [Member]	Treasury Shares	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Noble-Cayman [Member]	Noncontrolling Interests	Noncontrolling Interests Noble-Cayman [Member]
Beginning Balance at Dec. 31, 2009	$ 6,788,432	$ 6,949,196	$ 1,130,607	$ 26,125	$ 0	$ 368,374	$ 5,855,737	$ 6,609,578	$ (143,031)	$ (54,881)	$ (54,881)	$ 0	$ 0
Beginning Balance, shares at Dec. 31, 2009			261,975	261,246
Employee related equity activity
Share-based compensation expense	26,906				26,906
Issuance of share-based compensation shares			335		(335)
Issuance of share-based compensation shares, shares			77
Contribution to employee benefit plans	224		30		194
Contribution to employee benefit plans, shares			8
Exercise of stock options	9,479		1,762		7,717
Exercise of stock options, shares			447
Tax benefit of stock options exercised	5,556				5,556
Restricted shares forfeited or repurchased for taxes	(9,961)		(804)		960		1,335		(11,452)
Restricted shares forfeited or repurchased for taxes, shares			(183)
Repurchases of shares	(219,330)								(219,330)
Net income	675,138	706,656					674,671	706,189				467	467
Par value reduction payments	(193,869)		(184,220)		(9,648)		(1)
Capital contributions by parent - share-based compensation		15,519				15,519
Distributions to parent		(422,537)						(422,537)
Equity contribution by joint venture partner	124,628	124,628										124,628	124,628
Other comprehensive income (loss), net	(6,113)	(6,113)								(6,113)	(6,113)
Ending Balance at Sep. 30, 2010	7,201,090	7,367,349	947,710	26,125	31,350	383,893	6,531,742	6,893,230	(373,813)	(60,994)	(60,994)	125,095	125,095
Ending Balance, shares at Sep. 30, 2010			262,324	261,246
Beginning Balance at Jun. 30, 2010
Employee related equity activity
Net income	86,487	95,066
Other comprehensive income (loss), net	2,008	2,008
Ending Balance at Sep. 30, 2010	7,201,090	7,367,349		26,125
Ending Balance, shares at Sep. 30, 2010				261,246
Beginning Balance at Dec. 31, 2010	7,287,634	7,260,655	917,684	26,125	39,006	416,232	6,630,500	6,743,887	(373,967)	(50,220)	(50,220)	124,631	124,631
Beginning Balance, shares at Dec. 31, 2010			262,415	261,246
Employee related equity activity
Share-based compensation expense	26,857				26,857
Issuance of share-based compensation shares	7		844		(837)
Issuance of share-based compensation shares, shares			248
Exercise of stock options	8,733		1,629		7,104
Exercise of stock options, shares			490
Tax benefit of stock options exercised	278				278
Restricted shares forfeited or repurchased for taxes	(10,211)		(1,107)		1,107				(10,211)
Restricted shares forfeited or repurchased for taxes, shares			(319)
Retirement of treasury shares			(33,035)				(340,612)		373,647
Retirement of treasury shares, shares			(10,116)
Settlement of FIN 48 provision	15,658	15,658				15,658	15,658
Net income	244,185	292,482					243,895	292,192				290	290
Par value reduction payments	(114,453)		(89,948)		(24,505)
Capital contributions by parent - share-based compensation		15,150				15,150
Distributions to parent		(149,566)						(149,566)
Equity contribution by joint venture partner	518,973	518,973										518,973	518,973
Other comprehensive income (loss), net	(5,992)	(5,992)								(5,992)	(5,992)
Ending Balance at Sep. 30, 2011	7,971,669	7,947,360	796,067	26,125	49,010	447,040	6,549,441	6,886,513	(10,531)	(56,212)	(56,212)	643,894	643,894
Ending Balance, shares at Sep. 30, 2011			252,718	261,246
Beginning Balance at Jun. 30, 2011
Employee related equity activity
Net income	135,555	155,952
Other comprehensive income (loss), net	(13,896)	(13,896)
Ending Balance at Sep. 30, 2011	$ 7,971,669	$ 7,947,360		$ 26,125
Ending Balance, shares at Sep. 30, 2011				261,246

XML

Acquisition of FDR Holdings Limited

9 Months Ended

Sep. 30, 2011

Acquisition of FDR Holdings Limited [Abstract]

Acquisition of FDR Holdings Limited

Note 2 — Acquisition of FDR Holdings Limited

On July 28, 2010, Noble-Swiss and Noble AM Merger Co., a Cayman Islands company and indirect wholly-owned subsidiary of Noble-Swiss (“Merger Sub”), completed the acquisition of FDR Holdings Limited, a Cayman Islands company (“Frontier”). Under the terms of the Agreement and Plan of Merger with Frontier and certain of Frontier’s shareholders, Merger Sub merged with and into Frontier, with Frontier surviving as an indirect wholly-owned subsidiary of Noble-Swiss and a wholly-owned subsidiary of Noble-Cayman. The Frontier acquisition was for a purchase price of approximately $1.7 billion in cash plus liabilities assumed and strategically expanded and enhanced our global fleet. Frontier’s results of operations were included in our results beginning July 28, 2010. We funded the cash consideration paid at closing of approximately $1.7 billion using proceeds from our July 2010 offering of senior notes and existing cash on hand.

The following unaudited pro forma financial information for the three and nine months ended September 30, 2010 gives effect to the Frontier acquisition as if it had occurred at January 1, 2009. The pro forma results are based on historical data and are not intended to be indicative of the results of future operations.

	Three months		Nine months
	ended		ended
	September 30, 2010		September 30, 2010
Total operating revenues	$	647,700	$	2,339,889
Net income		85,282		616,358
Net income per share	$	0.33	$	2.40

XML

Share Data (Details 1) (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Basic
Net income attributable to Noble Corporation	$ 135,317	$ 86,020	$ 243,895	$ 674,671
Earnings allocated to unvested share-based payment awards	(1,415)	(828)	(2,487)	(6,416)
Net income to common shareholders - basic	133,902	85,192	241,408	668,255
Diluted
Net income attributable to Noble Corporation	135,317	86,020	243,895	674,671
Earnings allocated to unvested share-based payment awards	(1,412)	(825)	(2,481)	(6,394)
Net income to common shareholders - diluted	$ 133,905	$ 85,195	$ 241,414	$ 668,277
Weighted average shares outstanding - basic	251,580	252,513	251,327	253,944
Incremental shares issuable from assumed exercise of stock options	449	671	640	855
Weighted average shares outstanding - diluted	252,029	253,184	251,967	254,799
Weighted average unvested share-based payment awards	2,658	2,453	2,589	2,438
Earnings per share
Basic	$ 0.53	$ 0.34	$ 0.96	$ 2.63
Diluted	$ 0.53	$ 0.34	$ 0.96	$ 2.62

XML

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities [Abstract]

Net unrealized gain/(loss) related to forward contracts included through AOCL

The balance of the net unrealized gain/(loss) related to our cash flow hedges included in AOCL and related activity is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net unrealized gain/(loss) at beginning of period	$	4,117		$	(2,517	)	$	1,970		$	417
Activity during period:
Settlement of foreign currency forward contracts during the period		(2,054	)		1,395			(1,604	)		(417	)
Settlement of interest rate swaps during the period		—			—			(366	)		—
Net unrealized gain/(loss) on outstanding foreign currency forward contracts		(7,600	)		3,367			(5,537	)		2,245
Net unrealized gain/(loss) on outstanding interest rate swaps		—			(7,586	)		—			(7,586	)
Net unrealized gain/(loss) at end of period	$	(5,537	)	$	(5,341	)	$	(5,537	)	$	(5,341	)

Summarize the financial statement presentation and fair value of derivative positions

The following tables, together with Note 12, summarize the financial statement presentation and fair value of our derivative positions as of September 30, 2011 and December 31, 2010:

		Estimated fair value
	Balance sheet	September 30,			December 31,
	classification	2011			2010
Asset derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current assets	$	—		$	2,015
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			—
Non-designated derivatives
Short-term foreign currency forward contracts	Other current assets		—			2,603
Liability derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current liabilities	$	(5,537	)	$	412
Short-term interest rate swaps	Other current liabilities		—			15,697
Long-term interest rate swaps	Other liabilities		—			10,893
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			3,306

Summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives

To supplement the fair value disclosures in Note 12, the following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the three months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011		2010
Cash flow hedges
Foreign currency forward contracts	$	(7,600	)	$	4,762		$	2,054	$	—	$	—	$	—
Interest rate swaps		—			(7,586	)		—		—		—		(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	—	$	1,234

The following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the nine months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011			2010
Cash flow hedges
Foreign currency forward contracts	$	(5,537	)	$	1,828		$	1,604	$	—	$	—		$	—
Interest rate swaps		—			(7,586	)		366		—		—			(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	(546	)	$	1,234

XML

Segment and Related Information (Details) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Summarized financial information of our reportable segments
Revenues from external customers	$ 737,902	$ 612,618	$ 1,944,787	$ 2,163,391
Depreciation and amortization	166,213	143,282	487,454	385,366
Segment operating income/ (loss)	163,582	108,357	328,891	799,865
Interest expense, net of amount capitalized	(11,530)	(4,144)	(45,400)	(5,119)
Income tax provision	(17,614)	(20,287)	(42,481)	(126,801)
Segment profit/ (loss)	135,317	86,020	243,895	674,671
Total assets (at end of period)	12,951,533	11,006,424	12,951,533	11,006,424	11,302,387
Capital expenditures	559,205	354,692	1,987,988	886,093
Contract Drilling Services [Member]
Summarized financial information of our reportable segments
Revenues from external customers	719,546	604,042	1,897,045	2,137,304
Depreciation and amortization	162,837	140,199	477,568	376,754
Segment operating income/ (loss)	159,588	109,083	321,613	801,966
Interest expense, net of amount capitalized	(122)	(125)	(1,890)	(418)
Income tax provision	(18,380)	(20,876)	(48,661)	(128,012)
Segment profit/ (loss)	141,199	89,001	273,018	680,302
Total assets (at end of period)	12,472,018	9,625,999	12,472,018	9,625,999
Capital expenditures	555,434	352,347	1,979,145	869,435
Other [Member]
Summarized financial information of our reportable segments
Revenues from external customers	18,356	8,576	47,742	26,087
Depreciation and amortization	3,376	3,083	9,886	8,612
Segment operating income/ (loss)	3,994	(726)	7,278	(2,101)
Interest expense, net of amount capitalized	(11,408)	(4,019)	(43,510)	(4,701)
Income tax provision	766	589	6,180	1,211
Segment profit/ (loss)	(5,882)	(2,981)	(29,123)	(5,631)
Total assets (at end of period)	479,515	1,380,425	479,515	1,380,425
Capital expenditures	$ 3,771	$ 2,345	$ 8,843	$ 16,658

XML

Guarantees of Registered Securities (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	$ 197,015	$ 337,871	$ 367,242	$ 735,493
Accounts receivable	601,161	387,414
Prepaid expenses	61,166	35,502
Total current assets	1,001,444	911,794
Property and equipment
Drilling equipment, facilities and other	14,420,267	12,643,866
Accumulated depreciation	(2,999,235)	(2,595,779)
Property and equipment, net	11,421,032	10,048,087
Other assets	529,057	342,506
Total assets	12,951,533	11,302,387	11,006,424
Current liabilities
Current maturities of long-term debt	0	80,213
Total current liabilities	649,850	801,447
Long-term debt	3,811,866	2,686,484
Total liabilities	4,979,864	4,014,753
Commitments and contingencies
Total equity	7,971,669	7,287,634	7,201,090	6,788,432
Total liabilities and equity	12,951,533	11,302,387
Noble-Cayman [Member]
Current assets
Cash and cash equivalents	0	42	41	3
Accounts receivable	0	0
Prepaid expenses	0	0
Short-term notes receivable from affiliates	12,031	0
Accounts receivable from affiliates	1,170,004	607,207
Other current assets	0	7,057
Total current assets	1,182,035	614,306
Property and equipment
Drilling equipment, facilities and other	0	0
Accumulated depreciation	0	0
Property and equipment, net	0	0
Notes receivable from affiliates	3,487,062	3,507,062
Investments in affiliates	7,185,905	6,835,466
Other assets	3,660	1,872
Total assets	11,858,662	10,958,706
Current liabilities
Short-term notes payables from affiliates	60,000	25,000
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	6,298	1,473
Accounts payable to affiliates	1,802,030	1,601,869
Total current liabilities	1,868,328	1,628,342
Long-term debt	1,014,939	339,911
Notes payable to affiliates	1,652,000	1,834,500
Other liabilities	19,929	19,929
Total liabilities	4,555,196	3,822,682
Commitments and contingencies
Total equity	7,303,466	7,136,024
Total liabilities and equity	11,858,662	10,958,706
Noble-Cayman [Member]
Current assets
Cash and cash equivalents	192,005	333,399	344,415	726,225
Accounts receivable	601,161	387,414
Prepaid expenses	57,531	33,232
Short-term notes receivable from affiliates	(92,282)	0
Accounts receivable from affiliates	0	0
Other current assets	232,307	150,887
Total current assets	990,722	904,932
Property and equipment
Drilling equipment, facilities and other	14,386,421	12,614,974
Accumulated depreciation	(2,994,486)	(2,594,954)
Property and equipment, net	11,391,935	10,020,020
Notes receivable from affiliates	0	0
Investments in affiliates	0	0
Other assets	529,141	342,592
Total assets	12,911,798	11,267,544
Current liabilities
Short-term notes payables from affiliates	0	0
Current maturities of long-term debt	0	80,213
Accounts payable and accrued liabilities	634,424	713,344
Accounts payable to affiliates	0	0
Total current liabilities	634,424	793,557
Long-term debt	3,811,866	2,686,484
Notes payable to affiliates	0	0
Other liabilities	518,148	526,848
Total liabilities	4,964,438	4,006,889
Commitments and contingencies
Total equity	7,947,360	7,260,655	7,367,349	6,949,196
Total liabilities and equity	12,911,798	11,267,544
NHC and NDH Combined [Member]
Current assets
Cash and cash equivalents	292	146	234	268
Accounts receivable	10,757	6,984
Prepaid expenses	400	310
Short-term notes receivable from affiliates	119,476	119,476
Accounts receivable from affiliates	0	0
Other current assets	98,529	89,736
Total current assets	229,454	216,652
Property and equipment
Drilling equipment, facilities and other	2,374,299	1,254,482
Accumulated depreciation	(207,832)	(153,638)
Property and equipment, net	2,166,467	1,100,844
Notes receivable from affiliates	675,000	675,000
Investments in affiliates	9,107,055	9,150,129
Other assets	15,933	7,700
Total assets	12,193,909	11,150,325
Current liabilities
Short-term notes payables from affiliates	50,000	50,000
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	24,036	19,218
Accounts payable to affiliates	3,806,799	2,708,598
Total current liabilities	3,880,835	2,777,816
Long-term debt	0	0
Notes payable to affiliates	1,147,500	1,092,000
Other liabilities	24,291	48,595
Total liabilities	5,052,626	3,918,411
Commitments and contingencies
Total equity	7,141,283	7,231,914
Total liabilities and equity	12,193,909	11,150,325
NDC [Member]
Current assets
Cash and cash equivalents	0	0
Accounts receivable	3,472	1,795
Prepaid expenses	10	0
Short-term notes receivable from affiliates	0	0
Accounts receivable from affiliates	847,880	751,623
Other current assets	240	240
Total current assets	851,602	753,658
Property and equipment
Drilling equipment, facilities and other	71,567	70,945
Accumulated depreciation	(52,334)	(50,250)
Property and equipment, net	19,233	20,695
Notes receivable from affiliates	0	0
Investments in affiliates	3,510,041	3,561,451
Other assets	2,067	2,451
Total assets	4,382,943	4,338,255
Current liabilities
Short-term notes payables from affiliates	0	0
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	8,116	8,779
Accounts payable to affiliates	26,056	30,095
Total current liabilities	34,172	38,874
Long-term debt	0	0
Notes payable to affiliates	85,000	120,000
Other liabilities	30,177	25,485
Total liabilities	149,349	184,359
Commitments and contingencies
Total equity	4,233,594	4,153,896
Total liabilities and equity	4,382,943	4,338,255
NHIL [Member]
Current assets
Cash and cash equivalents	0	0
Accounts receivable	0	0
Prepaid expenses	0	0
Short-term notes receivable from affiliates	11,917	0
Accounts receivable from affiliates	138,227	199,235
Other current assets	0	19,980
Total current assets	150,144	219,215
Property and equipment
Drilling equipment, facilities and other	0	0
Accumulated depreciation	0	0
Property and equipment, net	0	0
Notes receivable from affiliates	2,336,527	1,239,600
Investments in affiliates	6,370,565	5,618,248
Other assets	19,087	11,336
Total assets	8,876,323	7,088,399
Current liabilities
Short-term notes payables from affiliates	0	0
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	15,201	31,973
Accounts payable to affiliates	99,896	64,192
Total current liabilities	115,097	96,165
Long-term debt	2,595,232	1,498,066
Notes payable to affiliates	975,000	550,000
Other liabilities	0	0
Total liabilities	3,685,329	2,144,231
Commitments and contingencies
Total equity	5,190,994	4,944,168
Total liabilities and equity	8,876,323	7,088,399
NDS6 [Member]
Current assets
Cash and cash equivalents	0	0
Accounts receivable	0	0
Prepaid expenses	0	0
Short-term notes receivable from affiliates	15,737	0
Accounts receivable from affiliates	0	1,958
Other current assets	0	9,416
Total current assets	15,737	11,374
Property and equipment
Drilling equipment, facilities and other	0	0
Accumulated depreciation	0	0
Property and equipment, net	0	0
Notes receivable from affiliates	572,107	479,107
Investments in affiliates	1,926,523	1,879,831
Other assets	910	1,001
Total assets	2,515,277	2,371,313
Current liabilities
Short-term notes payables from affiliates	0	0
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	630	4,413
Accounts payable to affiliates	30,916	7,134
Total current liabilities	31,546	11,547
Long-term debt	201,695	201,695
Notes payable to affiliates	811,000	811,000
Other liabilities	0	0
Total liabilities	1,044,241	1,024,242
Commitments and contingencies
Total equity	1,471,036	1,347,071
Total liabilities and equity	2,515,277	2,371,313
Other Non-guarantor Subsidiaries of Noble [Member]
Current assets
Cash and cash equivalents	191,713	333,211	344,140	725,954
Accounts receivable	586,932	378,635
Prepaid expenses	57,121	32,922
Short-term notes receivable from affiliates	280,045	75,000
Accounts receivable from affiliates	5,535,633	3,659,570
Other current assets	133,538	276,194
Total current assets	6,784,982	4,755,532
Property and equipment
Drilling equipment, facilities and other	11,940,555	11,289,547
Accumulated depreciation	(2,734,320)	(2,391,066)
Property and equipment, net	9,206,235	8,898,481
Notes receivable from affiliates	2,662,901	2,492,900
Investments in affiliates	0	0
Other assets	487,484	318,232
Total assets	19,141,602	16,465,145
Current liabilities
Short-term notes payables from affiliates	119,476	119,476
Current maturities of long-term debt		80,213
Accounts payable and accrued liabilities	580,143	647,488
Accounts payable to affiliates	2,228,059	1,059,441
Total current liabilities	2,927,678	1,906,618
Long-term debt	0	646,812
Notes payable to affiliates	5,063,097	3,986,169
Other liabilities	443,751	432,839
Total liabilities	8,434,526	6,972,438
Commitments and contingencies
Total equity	10,707,076	9,492,707
Total liabilities and equity	19,141,602	16,465,145
Consolidating Adjustments [Member]
Current assets
Cash and cash equivalents	0	0
Accounts receivable	0	0
Prepaid expenses	0	0
Short-term notes receivable from affiliates	(531,488)	(194,476)
Accounts receivable from affiliates	(7,691,744)	(5,219,593)
Other current assets	0	(251,736)
Total current assets	(8,223,232)	(5,665,805)
Property and equipment
Drilling equipment, facilities and other	0	0
Accumulated depreciation	0	0
Property and equipment, net	0	0
Notes receivable from affiliates	(9,733,597)	(8,393,669)
Investments in affiliates	(28,100,089)	(27,045,125)
Other assets	0	0
Total assets	(46,056,918)	(41,104,599)
Current liabilities
Short-term notes payables from affiliates	(229,476)	(194,476)
Current maturities of long-term debt		0
Accounts payable and accrued liabilities	0	0
Accounts payable to affiliates	(7,993,756)	(5,471,329)
Total current liabilities	(8,223,232)	(5,665,805)
Long-term debt	0	0
Notes payable to affiliates	(9,733,597)	(8,393,669)
Other liabilities	0	0
Total liabilities	(17,956,829)	(14,059,474)
Commitments and contingencies
Total equity	(28,100,089)	(27,045,125)
Total liabilities and equity	$ (46,056,918)	$ (41,104,599)

XML

Employee Benefit Plans (Details Textuals) (USD $) In Millions			9 Months Ended
	Sep. 30, 2011 Restoration Plan [Member]	Dec. 31, 2010 Restoration Plan [Member]	Sep. 30, 2011 Pension plans [Member]	Sep. 30, 2010 Pension plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions			$ 7	$ 15
Expected contributions to pension plans during 2011			11
Liability under the restoration plan	5	7
Value of investments held for our benefit to mitigate phantom investment income and losses	$ 4	$ 7

XML

Consolidated Joint Ventures

9 Months Ended

Sep. 30, 2011

Consolidated Joint Ventures [Abstract]

Consolidated Joint Ventures

Note 3 — Consolidated Joint Ventures

In connection with the Frontier acquisition, we acquired Frontier’s 50 percent interest in two joint ventures, each with a subsidiary of Royal Dutch Shell, PLC (“Shell”), for the construction and operation of the two Bully-class drillships. Since these entities’ equity at risk is insufficient to permit them to carry on their activities without additional financial support, they each meet the criteria for a variable interest entity. We have determined that we are the primary beneficiary for accounting purposes. Accordingly, we consolidate the entities in our consolidated financial statements after eliminating intercompany transactions. Shell’s equity interests are presented as noncontrolling interests on our Consolidated Balance Sheets.

In the first quarter of 2011, the joint venture credit facilities, which had a combined outstanding balance of $693 million, were repaid in full through contributions to the joint ventures from Noble and Shell. Shell contributed $361 million in equity to fund their portion of the repayment of joint venture credit facilities and related interest rate swaps, which were settled concurrent with the repayment and termination of the joint venture credit facilities.

In January 2011, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes was 10%, payable semi-annually in arrears and in kind on June 30 and December 31 commencing in June 2011. The purpose of these notes was to provide additional liquidity to the joint ventures in connection with the shipyard construction of the Bully vessels.

In April 2011, the Bully joint venture partners entered into a subscription agreement, pursuant to which each partner was issued equity in each of the Bully joint ventures in exchange for the cancellation of all outstanding joint venture partner notes. The subscription agreement converted all joint venture partner notes into equity of the respective joint venture. The total capital contributed as a result of these agreements was $146 million, which included $142 million in outstanding notes, plus accrued interest. Our portion of the capital contribution, totaling $73 million, was eliminated in consolidation.

In April 2011, the Bully joint venture partners also entered into capital contribution agreements whereby capital calls up to a total of $360 million can be made for funds needed to complete the projects. As of September 30, 2011, the total capital contributed under these agreements was $170 million. Subsequent to the third quarter, an additional $60 million of capital was contributed under these agreements.

At September 30, 2011, the combined carrying amount of the drillships was $1.3 billion, which was primarily funded through partner equity contributions.

XML

Property and Equipment (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Property and equipment
Property and equipment, at cost	$ 14,420,267	$ 12,643,866
Drilling equipment and facilities [Member]
Property and equipment
Property and equipment, at cost	9,908,049	8,900,266
Construction in progress [Member]
Property and equipment
Property and equipment, at cost	4,318,705	3,571,017
Other [Member]
Property and equipment
Property and equipment, at cost	$ 193,513	$ 172,583

XML

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2011

Property and Equipment [Abstract]

Property and Equipment, at cost

Property and equipment, at cost, as of September 30, 2011 and December 31, 2010 consisted of the following:

	2011		2010
Drilling equipment and facilities	$	9,908,049	$	8,900,266
Construction in progress		4,318,705		3,571,017
Other		193,513		172,583
	$	14,420,267	$	12,643,866

XML

Guarantees of Registered Securities (Details 2) (USD $) In Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Feb. 28, 2011	Sep. 30, 2011	Mar. 31, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net cash from operating activities					$ 474,446	$ 1,285,697
Cash flows from investing activities
New construction and capital expenditures		(559,205)		(354,692)	(1,987,988)	(886,093)
Refund from contract extinguishments					18,642
Acquisition of FDR Holdings, Ltd., net of cash acquired						(1,629,644)
Net cash from investing activities					(2,018,128)	(2,511,524)
Cash flows from financing activities
Increase in bank credit facilities, net					675,000
Proceeds from issuance of senior notes, net of debt issuance costs	1,090,000				1,087,833	1,238,074
Contributions from joint venture partners			361,000		481,000	35,000
Payments of joint venture debt					(693,494)
Settlement of interest rate swaps					(29,032)	(2,041)
Financing costs on credit facilities					(2,835)
Net cash from financing activities					1,402,826	857,576
Net change in cash and cash equivalents					(140,856)	(368,251)
Cash and cash equivalents, beginning of period			337,871		337,871	735,493
Cash and cash equivalents, end of period		197,015		367,242	197,015	367,242
Noble-Cayman [Member]
Cash flows from operating activities
Net cash from operating activities					(40,060)	(6,194)
Cash flows from investing activities
New construction and capital expenditures					0
Notes receivable from affiliates					20,000
Refund from contract extinguishments					0
Acquisition of FDR Holdings, Ltd., net of cash acquired						(1,629,644)
Net cash from investing activities					20,000	(1,629,644)
Cash flows from financing activities
Increase in bank credit facilities, net					675,000
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					(2,835)
Distributions to parent company, net					(149,566)	(422,537)
Advances (to) from affiliates					(355,081)	328,813
Notes payable to affiliates					(147,500)	1,729,600
Net cash from financing activities					20,018	1,635,876
Net change in cash and cash equivalents					(42)	38
Cash and cash equivalents, beginning of period			42		42	3
Cash and cash equivalents, end of period		0		41	0	41
Noble-Cayman [Member]
Cash flows from operating activities
Net cash from operating activities					502,874	1,280,748
Cash flows from investing activities
New construction and capital expenditures					(2,031,816)	(881,410)
Notes receivable from affiliates					0
Refund from contract extinguishments					18,642
Acquisition of FDR Holdings, Ltd., net of cash acquired						(1,629,644)
Net cash from investing activities					(2,013,174)	(2,511,054)
Cash flows from financing activities
Increase in bank credit facilities, net					675,000
Proceeds from issuance of senior notes, net of debt issuance costs					1,087,833	1,238,074
Contributions from joint venture partners					481,000	35,000
Payments of joint venture debt					(693,494)
Settlement of interest rate swaps					(29,032)	(2,041)
Financing costs on credit facilities					(2,835)
Distributions to parent company, net					(149,566)	(422,537)
Advances (to) from affiliates					0
Notes payable to affiliates					0
Net cash from financing activities					1,368,906	848,496
Net change in cash and cash equivalents					(141,394)	(381,810)
Cash and cash equivalents, beginning of period			333,399		333,399	726,225
Cash and cash equivalents, end of period		192,005		344,415	192,005	344,415
NHC and NDH Combined [Member]
Cash flows from operating activities
Net cash from operating activities					23,345	(57,507)
Cash flows from investing activities
New construction and capital expenditures					(1,124,826)	(381,928)
Notes receivable from affiliates					0
Refund from contract extinguishments					0
Net cash from investing activities					(1,124,826)	(381,928)
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					1,119,127	439,401
Notes payable to affiliates					(17,500)
Net cash from financing activities					1,101,627	439,401
Net change in cash and cash equivalents					146	(34)
Cash and cash equivalents, beginning of period			146		146	268
Cash and cash equivalents, end of period		292		234	292	234
NDC [Member]
Cash flows from operating activities
Net cash from operating activities					7,041	(3,907)
Cash flows from investing activities
New construction and capital expenditures					0
Notes receivable from affiliates					0
Refund from contract extinguishments					0
Net cash from investing activities					0
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					27,959	3,907
Notes payable to affiliates					(35,000)
Net cash from financing activities					(7,041)	3,907
Net change in cash and cash equivalents					0
Cash and cash equivalents, beginning of period			0		0
Cash and cash equivalents, end of period		0			0
NHIL [Member]
Cash flows from operating activities
Net cash from operating activities					(105,014)	(26,975)
Cash flows from investing activities
New construction and capital expenditures					0
Notes receivable from affiliates					(1,096,927)	(1,239,600)
Refund from contract extinguishments					0
Net cash from investing activities					(1,096,927)	(1,239,600)
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					1,087,833	1,238,074
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					114,108	28,501
Notes payable to affiliates					0
Net cash from financing activities					1,201,941	1,266,575
Net change in cash and cash equivalents					0
Cash and cash equivalents, beginning of period			0		0
Cash and cash equivalents, end of period		0			0
NDS6 [Member]
Cash flows from operating activities
Net cash from operating activities					(19,420)	3,258
Cash flows from investing activities
New construction and capital expenditures					0
Notes receivable from affiliates					0
Refund from contract extinguishments					0
Net cash from investing activities					0
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					19,420	(3,258)
Notes payable to affiliates					0
Net cash from financing activities					19,420	(3,258)
Net change in cash and cash equivalents					0
Cash and cash equivalents, beginning of period			0		0
Cash and cash equivalents, end of period		0			0
Other Non-guarantor Subsidiaries of Noble [Member]
Cash flows from operating activities
Net cash from operating activities					636,982	1,372,073
Cash flows from investing activities
New construction and capital expenditures					(906,990)	(499,482)
Notes receivable from affiliates					200,000	(490,000)
Refund from contract extinguishments					18,642
Net cash from investing activities					(688,348)	(989,482)
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					481,000	35,000
Payments of joint venture debt					(693,494)
Settlement of interest rate swaps					(29,032)	(2,041)
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					(925,533)	(797,364)
Notes payable to affiliates					1,076,927
Net cash from financing activities					(90,132)	(764,405)
Net change in cash and cash equivalents					(141,498)	(381,814)
Cash and cash equivalents, beginning of period			333,211		333,211	725,954
Cash and cash equivalents, end of period		191,713		344,140	191,713	344,140
Consolidating Adjustments [Member]
Cash flows from operating activities
Net cash from operating activities					0
Cash flows from investing activities
New construction and capital expenditures					0
Notes receivable from affiliates					876,927	1,729,600
Refund from contract extinguishments					0
Net cash from investing activities					876,927	1,729,600
Cash flows from financing activities
Increase in bank credit facilities, net					0
Proceeds from issuance of senior notes, net of debt issuance costs					0
Contributions from joint venture partners					0
Payments of joint venture debt					0
Settlement of interest rate swaps					0
Financing costs on credit facilities					0
Distributions to parent company, net					0
Advances (to) from affiliates					0
Notes payable to affiliates					(876,927)	(1,729,600)
Net cash from financing activities					(876,927)	(1,729,600)
Net change in cash and cash equivalents					0
Cash and cash equivalents, beginning of period			0		0
Cash and cash equivalents, end of period		$ 0			$ 0

XML

Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2011

Segment and Related Information [Abstract]

Summarized financial information of our reportable segment

Summarized financial information of our reportable segments for the three and nine months ended September 30, 2011 and 2010 is shown in the following table. The “Other” column includes results of labor contract drilling services in Canada and Alaska, as well as corporate related items.

	Three Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	719,546		$	18,356		$	737,902		$	604,042		$	8,576		$	612,618
Depreciation and amortization		162,837			3,376			166,213			140,199			3,083			143,282
Segment operating income/ (loss)		159,588			3,994			163,582			109,083			(726	)		108,357
Interest expense, net of amount capitalized		(122	)		(11,408	)		(11,530	)		(125	)		(4,019	)		(4,144	)
Income tax (provision)/ benefit		(18,380	)		766			(17,614	)		(20,876	)		589			(20,287	)
Segment profit/ (loss)		141,199			(5,882	)		135,317			89,001			(2,981	)		86,020
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		555,434			3,771			559,205			352,347			2,345			354,692

	Nine Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	1,897,045		$	47,742		$	1,944,787		$	2,137,304		$	26,087		$	2,163,391
Depreciation and amortization		477,568			9,886			487,454			376,754			8,612			385,366
Segment operating income/ (loss)		321,613			7,278			328,891			801,966			(2,101	)		799,865
Interest expense, net of amount capitalized		(1,890	)		(43,510	)		(45,400	)		(418	)		(4,701	)		(5,119	)
Income tax (provision)/ benefit		(48,661	)		6,180			(42,481	)		(128,012	)		1,211			(126,801	)
Segment profit/ (loss)		273,018			(29,123	)		243,895			680,302			(5,631	)		674,671
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		1,979,145			8,843			1,987,988			869,435			16,658			886,093

XML

Share Data (Details Textuals)	1 Months Ended	9 Months Ended		9 Months Ended
	Jul. 31, 2011	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2011 Stock Options [Member]	Sep. 30, 2010 Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options excluded from the diluted net income per share calculation as they were not dilutive				1,100,000	800,000
Share Data (Textuals) [Abstract]
Shares issued by Noble-Swiss		252,718,000	262,415,000
Treasury stock, shares		285,000	10,140,000
Shares held by wholly-owned subsidiary		13,400,000
Additional conditionally authorizable shares without additional shareholder approval		138,100,000
Remaining shares available under authorized share repurchase program		6,800,000
Shares repurchased under share repurchase program held in treasury		0
Number of shares approved by shareholders for cancellation	10,100,000
Reduced shares authorized for issuance	266,200,000

XML

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Pension Costs

Pension costs include the following components:

	Three Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	1,141		$	2,152		$	1,045		$	1,912
Interest cost		1,433			2,143			1,224			1,957
Return on plan assets		(1,449	)		(2,768	)		(1,331	)		(2,392	)
Amortization of prior service cost		—			57			—			57
Amortization of transition obligation		19			—			17			—
Recognized net actuarial loss		123			844			181			705
Net pension expense	$	1,267		$	2,428		$	1,136		$	2,239

	Nine Months Ended September 30,
	2011						2010
	Non-U.S.			U.S.			Non-U.S.			U.S.
Service cost	$	3,387		$	6,456		$	3,211		$	5,736
Interest cost		4,256			6,428			3,694			5,871
Return on plan assets		(4,306	)		(8,304	)		(3,999	)		(7,176	)
Amortization of prior service cost		—			170			—			171
Amortization of transition obligation		56			—			53			—
Recognized net actuarial loss		366			2,531			537			2,115
Net pension expense	$	3,759		$	7,281		$	3,496		$	6,717

XML

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

Note 11 — Derivative Instruments and Hedging Activities

We periodically enter into derivative instruments to manage our exposure to fluctuations in interest rates and foreign currency exchange rates. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives. During the period, we maintained certain foreign currency forward contracts that did not qualify under the Financial Accounting Standards Board (“FASB”) standards for hedge accounting treatment and therefore, changes in fair values were recognized as either income or loss in our consolidated income statement.

For foreign currency forward contracts, hedge effectiveness is evaluated at inception based on the matching of critical terms between derivative contracts and the hedged item. For interest rate swaps, we evaluate all material terms between the swap and the underlying debt obligation, known in FASB standards as the “long-haul method.” Any change in fair value resulting from ineffectiveness is recognized immediately in earnings.

Cash Flow Hedges

Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. To limit the potential risk of currency fluctuations, we typically maintain short-term forward contracts settling monthly in their respective local currencies. The forward contract settlements in the remainder of 2011 represent approximately 43 percent of these forecasted local currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. Dollars, was approximately $71 million at September 30, 2011. Total unrealized losses related to these forward contracts were $6 million as of September 30, 2011 and were recorded as part of “Accumulated other comprehensive loss” (“AOCL”).

Our two joint ventures had maintained interest rate swaps which were classified as cash flow hedges. The purpose of these hedges was to satisfy bank covenants of the then outstanding credit facilities and to limit exposure to changes in interest rates. In February 2011, the outstanding balances of the joint venture credit facilities and the related interest rate swaps were settled and terminated. As a result of these transactions we recognized a gain of $1 million during the nine months ended September 30, 2011.

The balance of the net unrealized gain/(loss) related to our cash flow hedges included in AOCL and related activity is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net unrealized gain/(loss) at beginning of period	$	4,117		$	(2,517	)	$	1,970		$	417
Activity during period:
Settlement of foreign currency forward contracts during the period		(2,054	)		1,395			(1,604	)		(417	)
Settlement of interest rate swaps during the period		—			—			(366	)		—
Net unrealized gain/(loss) on outstanding foreign currency forward contracts		(7,600	)		3,367			(5,537	)		2,245
Net unrealized gain/(loss) on outstanding interest rate swaps		—			(7,586	)		—			(7,586	)
Net unrealized gain/(loss) at end of period	$	(5,537	)	$	(5,341	)	$	(5,537	)	$	(5,341	)

Fair Value Hedges

We entered into a firm commitment for the construction of the Noble Globetrotter I drillship. The drillship was constructed in two phases, with the second phase being installation and commissioning of the topside equipment. The contract for this second phase of construction was denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward contracts to purchase Euros. As of September 30, 2011, all amounts related to the forward contracts have settled. We accounted for the forward contracts as fair value hedges, and their fair market value was included in “Other current assets/liabilities” in the Consolidated Balance Sheets. No gain or loss was recognized in the income statement for the three and nine months ended September 30, 2011 or 2010.

Foreign Currency Forward Contracts

One of our joint ventures maintained foreign currency forward contracts to help mitigate the risk of currency fluctuation of the Singapore Dollar for the construction of the Noble Bully II drillship. These contracts were not designated for hedge accounting treatment under FASB standards, and therefore, changes in fair values were recognized as either income or loss in our Consolidated Income Statement. These contracts are referred to as non-designated derivatives in the tables to follow, and all were settled during the first quarter of 2011. For the nine months ended September 30, 2011, we recognized a loss of $0.5 million related to these foreign currency forward contracts.

Financial Statement Presentation

The following tables, together with Note 12, summarize the financial statement presentation and fair value of our derivative positions as of September 30, 2011 and December 31, 2010:

		Estimated fair value
	Balance sheet	September 30,			December 31,
	classification	2011			2010
Asset derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current assets	$	—		$	2,015
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			—
Non-designated derivatives
Short-term foreign currency forward contracts	Other current assets		—			2,603
Liability derivatives
Cash flow hedges
Short-term foreign currency forward contracts	Other current liabilities	$	(5,537	)	$	412
Short-term interest rate swaps	Other current liabilities		—			15,697
Long-term interest rate swaps	Other liabilities		—			10,893
Fair value hedges
Short-term foreign currency forward contracts	Other current liabilities		—			3,306

To supplement the fair value disclosures in Note 12, the following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the three months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011		2010
Cash flow hedges
Foreign currency forward contracts	$	(7,600	)	$	4,762		$	2,054	$	—	$	—	$	—
Interest rate swaps		—			(7,586	)		—		—		—		(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	—	$	1,234

The following summarizes the recognized gains and losses of cash flow hedges and non-designated derivatives through AOCL or through “other income” for the nine months ended September 30, 2011 and 2010:

							Gain/(loss) reclassified
	Gain/(loss) recognized						from AOCL to “other				Gain/(loss) recognized
	through AOCL						income”				through “other income”
	2011			2010			2011		2010		2011			2010
Cash flow hedges
Foreign currency forward contracts	$	(5,537	)	$	1,828		$	1,604	$	—	$	—		$	—
Interest rate swaps		—			(7,586	)		366		—		—			(261	)
Non-designated derivatives
Foreign currency forward contracts	$	—		$	—		$	—	$	—	$	(546	)	$	1,234

During the nine months ended September 30, 2011, in connection with the settlement of our interest rate swaps, $1 million was reclassified from AOCL to gain on contract extinguishments.

For cash flow presentation purposes, cash outflows of $29 million were recognized in the financing activities section related to the settlement of interest rate swaps. All other amounts were recognized as changes in operating activities.

XML

Fair Value of Financial Instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Assets
Marketable securities		$ 6,854
Foreign currency forward contracts		4,618
Liabilities
Foreign currency forward contracts		3,718
Interest Rate Swaps [Member]
Liabilities
Foreign currency forward contracts		26,590
Interest Rate Swaps [Member] | Carrying Amount [Member]
Liabilities
Foreign currency forward contracts		26,590
Interest Rate Swaps [Member] | Level 1 [Member]
Liabilities
Foreign currency forward contracts
Interest Rate Swaps [Member] | Level 2 [Member]
Liabilities
Foreign currency forward contracts
Interest Rate Swaps [Member] | Level 3 [Member]
Liabilities
Foreign currency forward contracts
Carrying Amount [Member]
Assets
Marketable securities	4,294	6,854
Foreign currency forward contracts		4,618
Liabilities
Foreign currency forward contracts	(5,537)	3,718
Carrying Amount [Member] | Firm commitment [Member]
Assets
Firm commitment		3,306
Level 1 [Member]
Assets
Marketable securities	4,294
Foreign currency forward contracts
Liabilities
Foreign currency forward contracts
Level 1 [Member] | Firm commitment [Member]
Assets
Firm commitment
Level 2 [Member]
Assets
Marketable securities
Foreign currency forward contracts
Liabilities
Foreign currency forward contracts	(5,537)
Level 2 [Member] | Firm commitment [Member]
Assets
Firm commitment
Level 3 [Member]
Assets
Marketable securities
Foreign currency forward contracts
Liabilities
Foreign currency forward contracts
Level 3 [Member] | Firm commitment [Member]
Assets
Firm commitment
Firm commitment [Member]
Assets
Firm commitment		$ 3,306

XML

Guarantees of Registered Securities (Details 1) (USD $) In Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Jan. 31, 2011	Sep. 30, 2011	Mar. 31, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Operating revenues
Contract drilling services		$ 704,892		$ 584,919	$ 1,837,047	$ 2,081,075
Reimbursables		17,438		19,177	63,851	57,163
Labor contract drilling services		15,564		7,887	43,123	23,704
Other		8		635	766	1,449
Total operating revenues		737,902		612,618	1,944,787	2,163,391
Operating costs and expenses
Contract drilling services		358,547		315,844	1,001,638	845,870
Reimbursables		13,971		14,351	49,797	44,459
Labor contract drilling services		8,053		5,302	25,326	16,570
Depreciation and amortization		166,213		143,282	487,454	385,366
Selling, general and administrative		27,536		25,482	72,883	71,261
Gain on contract extinguishments, net	32,600		52,500		(21,202)
Total operating costs and expenses		574,320		504,261	1,615,896	1,363,526
Operating income		163,582		108,357	328,891	799,865
Other income (expense)
Interest expense, net of amount capitalized		(11,530)		(4,144)	(45,400)	(5,119)
Interest income and other, net		1,117		2,561	3,175	7,193
Income before income taxes		153,169		106,774	286,666	801,939
Income tax provision		(17,614)		(20,287)	(42,481)	(126,801)
Net income		135,555		86,487	244,185	675,138
Net income attributable to noncontrolling interests		(238)		(467)	(290)	(467)
Net income attributable to Noble Corporation		135,317		86,020	243,895	674,671
Noble-Cayman [Member]
Operating costs and expenses
Contract drilling services		1,759		18,924	4,818	18,931
Selling, general and administrative		2,094			5,397
Gain on contract extinguishments, net
Total operating costs and expenses		3,853		18,924	10,215	18,931
Operating income		(3,853)		(18,924)	(10,215)	(18,931)
Other income (expense)
Equity earnings in affiliates, net of tax		174,673		124,218	350,439	732,956
Interest expense, net of amount capitalized		(16,721)		(12,251)	(52,985)	(12,838)
Interest income and other, net		1,615		1,556	4,953	5,002
Income before income taxes		155,714		94,599	292,192	706,189
Net income		155,714		94,599	292,192	706,189
Net income attributable to Noble Corporation		155,714		94,599	292,192	706,189
Noble-Cayman [Member]
Operating revenues
Contract drilling services		704,892		584,919	1,837,047	2,081,075
Reimbursables		17,438		19,177	63,851	57,163
Labor contract drilling services		15,564		7,887	43,123	23,704
Other		8		635	766	1,449
Total operating revenues		737,902		612,618	1,944,787	2,163,391
Operating costs and expenses
Contract drilling services		349,626		315,787	980,662	839,652
Reimbursables		13,971		14,351	49,797	44,459
Labor contract drilling services		8,053		5,302	25,326	16,570
Depreciation and amortization		165,719		143,059	486,010	384,775
Selling, general and administrative		17,637		16,715	48,810	48,137
Gain on contract extinguishments, net					(21,202)
Total operating costs and expenses		555,006		495,214	1,569,403	1,333,593
Operating income		182,896		117,404	375,384	829,798
Other income (expense)
Interest expense, net of amount capitalized		(11,530)		(4,147)	(45,400)	(5,122)
Interest income and other, net		1,884		1,210	3,978	6,320
Income before income taxes		173,250		114,467	333,962	830,996
Income tax provision		(17,298)		(19,401)	(41,480)	(124,340)
Net income		155,952		95,066	292,482	706,656
Net income attributable to noncontrolling interests		(238)		(467)	(290)	(467)
Net income attributable to Noble Corporation		155,714		94,599	292,192	706,189
NHC and NDH Combined [Member]
Operating revenues
Contract drilling services		38,955		23,724	100,009	72,313
Reimbursables		691		388	3,381	978
Labor contract drilling services		4			4
Other				(107)		5
Total operating revenues		39,650		24,005	103,394	73,296
Operating costs and expenses
Contract drilling services		10,485		8,475	31,554	27,082
Reimbursables		420		127	3,331	1,226
Depreciation and amortization		13,138		9,494	36,330	27,321
Selling, general and administrative		1,488		605	4,206	51,241
Gain on contract extinguishments, net
Total operating costs and expenses		25,531		18,701	75,421	106,870
Operating income		14,119		5,304	27,973	(33,574)
Other income (expense)
Equity earnings in affiliates, net of tax		226,079		155,504	328,452	497,191
Interest expense, net of amount capitalized		(15,612)		(14,845)	(45,527)	(50,179)
Interest income and other, net		6,906		555	19,376	23,312
Income before income taxes		231,492		146,518	330,274	436,750
Income tax provision		487		(18,445)	6,287	(27,537)
Net income		231,979		128,073	336,561	409,213
Net income attributable to Noble Corporation		231,979		128,073	336,561	409,213
NDC [Member]
Operating revenues
Contract drilling services		5,105		5,363	14,800	12,847
Reimbursables					12	61
Total operating revenues		5,105		5,363	14,812	12,908
Operating costs and expenses
Contract drilling services		1,883		1,657	5,681	4,793
Reimbursables						61
Depreciation and amortization		937		924	2,781	2,536
Selling, general and administrative				94		315
Gain on contract extinguishments, net
Total operating costs and expenses		2,820		2,675	8,462	7,705
Operating income		2,285		2,688	6,350	5,203
Other income (expense)
Equity earnings in affiliates, net of tax		45,818		38,484	80,795	47,602
Interest expense, net of amount capitalized		(1,285)		(1,859)	(4,824)	(5,516)
Interest income and other, net		(40)			8
Income before income taxes		46,778		39,313	82,329	47,289
Net income		46,778		39,313	82,329	47,289
Net income attributable to Noble Corporation		46,778		39,313	82,329	47,289
NHIL [Member]
Operating costs and expenses
Contract drilling services		9,819			26,625
Selling, general and administrative		9,253		(63)	24,756	56
Gain on contract extinguishments, net
Total operating costs and expenses		19,072		(63)	51,381	56
Operating income		(19,072)		63	(51,381)	(56)
Other income (expense)
Equity earnings in affiliates, net of tax		172,153		136,039	344,524	768,130
Interest expense, net of amount capitalized		(21,641)		(12,645)	(67,667)	(32,010)
Interest income and other, net		15,813		8,419	38,557	8,419
Income before income taxes		147,253		131,876	264,033	744,483
Net income		147,253		131,876	264,033	744,483
Net income attributable to Noble Corporation		147,253		131,876	264,033	744,483
NDS6 [Member]
Operating costs and expenses
Selling, general and administrative					1
Gain on contract extinguishments, net
Total operating costs and expenses					1
Operating income					(1)
Other income (expense)
Equity earnings in affiliates, net of tax		(20,624)		35,842	86,932	336,350
Interest expense, net of amount capitalized		(7,106)		(1,424)	(22,048)	(1,424)
Interest income and other, net		2,277		2,221	6,321	8,373
Income before income taxes		(25,453)		36,639	71,204	343,299
Net income		(25,453)		36,639	71,204	343,299
Net income attributable to Noble Corporation		(25,453)		36,639	71,204	343,299
Other Non-guarantor Subsidiaries of Noble [Member]
Operating revenues
Contract drilling services		680,617		565,132	1,770,356	2,026,515
Reimbursables		16,747		18,789	60,458	56,124
Labor contract drilling services		15,560		7,887	43,119	23,704
Other		8		742	766	1,444
Total operating revenues		712,932		592,550	1,874,699	2,107,787
Operating costs and expenses
Contract drilling services		345,465		296,031	960,102	819,446
Reimbursables		13,551		14,224	46,466	43,172
Labor contract drilling services		8,053		5,302	25,326	16,570
Depreciation and amortization		151,644		132,641	446,899	354,918
Selling, general and administrative		4,802		16,079	14,450	(3,475)
Gain on contract extinguishments, net					(21,202)
Total operating costs and expenses		523,515		464,277	1,472,041	1,230,631
Operating income		189,417		128,273	402,658	877,156
Other income (expense)
Interest expense, net of amount capitalized		(267)		(2,668)	(3,284)	(8,852)
Interest income and other, net		26,415		30,004	85,698	66,911
Income before income taxes		215,565		155,609	485,072	935,215
Income tax provision		(17,785)		(956)	(47,767)	(96,803)
Net income		197,780		154,653	437,305	838,412
Net income attributable to noncontrolling interests		(238)		(467)	(290)	(467)
Net income attributable to Noble Corporation		197,542		154,186	437,015	837,945
Consolidating Adjustments [Member]
Operating revenues
Contract drilling services		(19,785)		(9,300)	(48,118)	(30,600)
Total operating revenues		(19,785)		(9,300)	(48,118)	(30,600)
Operating costs and expenses
Contract drilling services		(19,785)		(9,300)	(48,118)	(30,600)
Gain on contract extinguishments, net
Total operating costs and expenses		(19,785)		(9,300)	(48,118)	(30,600)
Other income (expense)
Equity earnings in affiliates, net of tax		(598,099)		(490,087)	(1,191,142)	(2,382,229)
Interest expense, net of amount capitalized		51,102		41,545	150,935	105,697
Interest income and other, net		(51,102)		(41,545)	(150,935)	(105,697)
Income before income taxes		(598,099)		(490,087)	(1,191,142)	(2,382,229)
Net income		(598,099)		(490,087)	(1,191,142)	(2,382,229)
Net income attributable to Noble Corporation		$ (598,099)		$ (490,087)	$ (1,191,142)	$ (2,382,229)

XML

Share Data

9 Months Ended

Sep. 30, 2011

Earnings Per Share[Abstract]

Share Data

Note 4 — Share Data

Share capital

The following is a detail of Noble-Swiss’ share capital as of September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Shares outstanding and trading		252,433		252,275
Treasury shares		285		10,140
Total shares outstanding		252,718		262,415
Treasury shares held for share-based compensation plans		13,432		13,851
Total shares authorized for issuance		266,150		276,266
Par value per share (in Swiss Francs)		3.54		3.93

Shares authorized for issuance by Noble-Swiss at September 30, 2011 totaled 266.2 million shares and include 0.3 million shares held in treasury and 13.4 million treasury shares held by a wholly-owned subsidiary. Repurchased treasury shares are recorded at cost, and include shares repurchased pursuant to our approved share repurchase program discussed below and shares surrendered by employees for taxes payable upon the vesting of restricted stock.

Share repurchases are made pursuant to the share repurchase program that our Board of Directors authorized and adopted. All shares repurchased under our share repurchase program are held in treasury. The number of shares that we may hold in treasury is limited under Swiss law. At September 30, 2011, 6.8 million shares remained available for repurchase under previous authorization by the Board of Directors. No shares have been repurchased under this authorization during the nine months ended September 30, 2011.

During July 2011, after making the required filings with the Swiss Commercial Register, 10.1 million repurchased shares held in treasury were cancelled and the total number of shares authorized for issuance was reduced to 266.2 million shares.

Our Board of Directors may further increase Noble-Swiss’ share capital through the issuance of up to 138.1 million conditionally authorized registered shares without obtaining shareholder approval. The issuance of these conditionally authorized registered shares is subject to certain conditions regarding their use.

Earnings per share

The following table sets forth the computation of basic and diluted earnings per share for Noble-Swiss:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Allocation of net income
Basic
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,415	)		(828	)		(2,487	)		(6,416	)
Net income to common shareholders — basic	$	133,902		$	85,192		$	241,408		$	668,255
Diluted
Net income attributable to Noble Corporation	$	135,317		$	86,020		$	243,895		$	674,671
Earnings allocated to unvested share-based payment awards		(1,412	)		(825	)		(2,481	)		(6,394	)
Net income to common shareholders — diluted	$	133,905		$	85,195		$	241,414		$	668,277
Weighted average shares outstanding — basic		251,580			252,513			251,327			253,944
Incremental shares issuable from assumed exercise of stock options		449			671			640			855
Weighted average shares outstanding — diluted		252,029			253,184			251,967			254,799
Weighted average unvested share-based payment awards		2,658			2,453			2,589			2,438
Earnings per share
Basic	$	0.53		$	0.34		$	0.96		$	2.63
Diluted	$	0.53		$	0.34		$	0.96		$	2.62

Only those items having a dilutive impact on our basic earnings per share are included in diluted earnings per share. At September 30, 2011, stock options totaling approximately 1.1 million were excluded from the diluted earnings per share as they were not dilutive as compared to 0.8 million at September 30, 2010.

XML

Segment and Related Information

9 Months Ended

Sep. 30, 2011

Segment and Related Information [Abstract]

Segment and Related Information

Note 14 — Segment and Related Information

We report our contract drilling operations as a single reportable segment: Contract Drilling Services. The consolidation of our contract drilling operations into one reportable segment is attributable to how we manage our business, and the fact that all of our drilling fleet is dependent upon the worldwide oil and gas industry. The mobile offshore drilling units comprising our offshore rig fleet operate in a single, global market for contract drilling services and are often redeployed globally in response to changing demands of our customers, which consist largely of major non-U.S. and government owned/controlled oil and gas companies throughout the world. Our Contract Drilling Services segment currently conducts contract drilling operations principally in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian Pacific.

We evaluate the performance of our operating segment primarily based on operating revenues and net income. Summarized financial information of our reportable segments for the three and nine months ended September 30, 2011 and 2010 is shown in the following table. The “Other” column includes results of labor contract drilling services in Canada and Alaska, as well as corporate related items.

	Three Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	719,546		$	18,356		$	737,902		$	604,042		$	8,576		$	612,618
Depreciation and amortization		162,837			3,376			166,213			140,199			3,083			143,282
Segment operating income/ (loss)		159,588			3,994			163,582			109,083			(726	)		108,357
Interest expense, net of amount capitalized		(122	)		(11,408	)		(11,530	)		(125	)		(4,019	)		(4,144	)
Income tax (provision)/ benefit		(18,380	)		766			(17,614	)		(20,876	)		589			(20,287	)
Segment profit/ (loss)		141,199			(5,882	)		135,317			89,001			(2,981	)		86,020
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		555,434			3,771			559,205			352,347			2,345			354,692

	Nine Months Ended September 30,
	2011									2010
	Contract									Contract
	Drilling									Drilling
	Services			Other			Total			Services			Other			Total
Revenues from external customers	$	1,897,045		$	47,742		$	1,944,787		$	2,137,304		$	26,087		$	2,163,391
Depreciation and amortization		477,568			9,886			487,454			376,754			8,612			385,366
Segment operating income/ (loss)		321,613			7,278			328,891			801,966			(2,101	)		799,865
Interest expense, net of amount capitalized		(1,890	)		(43,510	)		(45,400	)		(418	)		(4,701	)		(5,119	)
Income tax (provision)/ benefit		(48,661	)		6,180			(42,481	)		(128,012	)		1,211			(126,801	)
Segment profit/ (loss)		273,018			(29,123	)		243,895			680,302			(5,631	)		674,671
Total assets (at end of period)		12,472,018			479,515			12,951,533			9,625,999			1,380,425			11,006,424
Capital expenditures		1,979,145			8,843			1,987,988			869,435			16,658			886,093

XML

Guarantees of Registered Securities (Details Textuals) (USD $) In Millions, unless otherwise specified	Sep. 30, 2011	Feb. 28, 2011
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	10.00%
Debt instrument, face amount	$ 70
Number of tranches	3
5.875% Senior Notes due 2013 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	5.875%
Unsecured long-term senior notes outstanding	300
7.375% Senior Notes due 2014 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	7.375%
Debt instrument, face amount		1,100
Unsecured long-term senior notes outstanding	250
7.50% Senior Notes due 2019 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	7.50%
Unsecured long-term senior notes outstanding	202
Aggregate of Recently Issued Senior Notes 1 [Member]
Guarantees of Registered Securities (Textuals)
Debt instrument, face amount	1,250
3.45% Senior Notes due 2015 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	3.45%
4.90% Senior Notes due 2020 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	4.90%
6.20% Senior Notes due 2040 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	6.20%
Aggregate of Recently Issued Senior Notes 2 [Member]
Guarantees of Registered Securities (Textuals)
Debt instrument, face amount	1,100
3.05% senior notes due 2016 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	3.05%	3.05%
Debt instrument, face amount		300
4.625% senior notes due 2021 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	4.625%	4.625%
Debt instrument, face amount		400
6.05% senior notes due 2041 [Member]
Guarantees of Registered Securities (Textuals)
Interest rate on the notes issued to the joint venture partner	6.05%	6.05%
Debt instrument, face amount		$ 400

XML

Share Data (Details) In Thousands, except Per Share data	Sep. 30, 2011 CHF	Dec. 31, 2010 CHF
Noble-Swiss' share capital
Shares outstanding and trading	252,433	252,275
Treasury shares	285	10,140
Total shares, outstanding	252,718	262,415
Treasury shares held for share-based compensation plans	13,432	13,851
Total shares authorized for issuance	266,150	276,266
Par value per share (in Swiss Francs)	3.54	3.93

XML

Debt (Tables)

9 Months Ended

Sep. 30, 2011

Debt [Abstract]

Long-term debt

Total debt consisted of the following at September 30, 2011 and December 31, 2010:

	September 30,		December 31,
	2011		2010
Wholly-owned debt instruments:
5.875% Senior Notes due 2013	$	299,939	$	299,911
7.375% Senior Notes due 2014		249,610		249,506
3.45% Senior Notes due 2015		350,000		350,000
3.05% Senior Notes due 2016		299,934		—
7.50% Senior Notes due 2019		201,695		201,695
4.90% Senior Notes due 2020		498,754		498,672
4.625% Senior Notes due 2021		399,469		—
6.20% Senior Notes due 2040		399,890		399,889
6.05% Senior Notes due 2041		397,575		—
Credit facilities		715,000		40,000
Consolidated joint venture debt instruments:
Joint venture credit facilities	$	—	$	691,052
Joint venture partner notes		—		35,972
Total Debt		3,811,866		2,766,697
Less: Current Maturities		—		(80,213	)
Long-term Debt	$	3,811,866	$	2,686,484

Estimated fair value of our long-term debt

The following table presents the estimated fair value of our long-term debt as of September 30, 2011 and December 31, 2010.

	September 30, 2011				December 31, 2010
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Wholly-owned debt instruments
5.875% Senior Notes due 2013	$	299,939	$	323,731	$	299,911	$	324,281
7.375% Senior Notes due 2014		249,610		283,353		249,506		282,078
3.45% Senior Notes due 2015		350,000		365,503		350,000		357,292
3.05% Senior Notes due 2016		299,934		305,919		—		—
7.50% Senior Notes due 2019		201,695		250,238		201,695		242,464
4.90% Senior Notes due 2020		498,754		537,513		498,672		516,192
4.625% Senior Notes due 2021		399,469		420,987		—		—
6.20% Senior Notes due 2040		399,890		456,403		399,889		423,345
6.05% Senior Notes due 2041		397,575		447,951		—		—
Credit facilities		715,000		715,000		40,000		40,000
Consolidated joint venture debt instruments
Joint venture credit facilities		—		—		691,052		691,052
Joint venture partner notes		—		—		35,972		35,972

XML

Consolidated Statement of Cash Flows (Unaudited) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities
Net income	$ 244,185	$ 675,138
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	487,454	385,366
Gain on contract extinguishments, net	(21,202)
Deferred income taxes	(34,549)	(29,586)
Share-based compensation expense	26,857	26,906
Net change in other assets and liabilities	(228,299)	227,873
Net cash from operating activities	474,446	1,285,697
Cash flows from investing activities
Capital expenditures	(1,987,988)	(886,093)
Change in accrued capital expenditures	(48,782)	4,213
Refund from contract extinguishments	18,642
Acquisition of FDR Holdings, Ltd., net of cash acquired		(1,629,644)
Net cash from investing activities	(2,018,128)	(2,511,524)
Cash flows from financing activities
Increase in bank credit facilities, net	675,000
Proceeds from issuance of senior notes, net of debt issuance costs	1,087,833	1,238,074
Contributions from joint venture partners	481,000	35,000
Payments of joint venture debt	(693,494)
Settlement of interest rate swaps	(29,032)	(2,041)
Par value reduction payments	(114,453)	(193,869)
Financing costs on credit facilities	(2,835)
Proceeds from employee stock transactions	9,018	9,703
Repurchases of employee shares surrendered for taxes	(10,211)	(9,961)
Repurchases of shares		(219,330)
Net cash from financing activities	1,402,826	857,576
Net change in cash and cash equivalents	(140,856)	(368,251)
Cash and cash equivalents, beginning of period	337,871	735,493
Cash and cash equivalents, end of period	197,015	367,242
Noble-Cayman [Member]
Cash flows from operating activities
Net income	292,482	706,656
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	486,010	384,775
Gain on contract extinguishments, net	(21,202)
Deferred income taxes	(34,549)	(29,586)
Capital contribution by parent - share-based compensation	15,150	15,519
Net change in other assets and liabilities	(235,017)	203,384
Net cash from operating activities	502,874	1,280,748
Cash flows from investing activities
Capital expenditures	(1,983,034)	(885,623)
Change in accrued capital expenditures	(48,782)	4,213
Refund from contract extinguishments	18,642
Acquisition of FDR Holdings, Ltd., net of cash acquired		(1,629,644)
Net cash from investing activities	(2,013,174)	(2,511,054)
Cash flows from financing activities
Increase in bank credit facilities, net	675,000
Proceeds from issuance of senior notes, net of debt issuance costs	1,087,833	1,238,074
Contributions from joint venture partners	481,000	35,000
Payments of joint venture debt	(693,494)
Settlement of interest rate swaps	(29,032)	(2,041)
Financing costs on credit facilities	(2,835)
Distributions to parent company, net	(149,566)	(422,537)
Net cash from financing activities	1,368,906	848,496
Net change in cash and cash equivalents	(141,394)	(381,810)
Cash and cash equivalents, beginning of period	333,399	726,225
Cash and cash equivalents, end of period	$ 192,005	$ 344,415

XML

Accounting Pronouncements

9 Months Ended

Sep. 30, 2011

Accounting Pronouncements [Abstract]

Accounting Pronouncements

Note 15 — Accounting Pronouncements

In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple-deliverable arrangements. The guidance establishes a selling-price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to multiple-deliverable arrangements and to align the accounting with the underlying economics of the multiple-deliverable transaction. This guidance is effective for fiscal years beginning on or after June 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in the roll-forward activity in Level 3 fair value measurements were deferred until fiscal years beginning after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In December 2010, the FASB issued guidance that requires a public entity to disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable prior annual reporting period. The guidance is effective for annual reporting periods beginning on or after December 15, 2010. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In May 2011, the FASB issued guidance that modified the wording used to describe many of the requirements in accounting literature for measuring fair value and for disclosing information about fair value measurements. The goal of the amendment is to create consistency between the United States and international accounting standards. The guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance should not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In June 2011, the FASB issued guidance that allows an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendment no longer allows an entity to show changes to other comprehensive income solely through the statement of equity. For publicly traded entities, the guidance is effective for annual and interim reporting periods beginning on or after December 15, 2011. While we are still evaluating this guidance, the adoption of this guidance will not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

XML

Gain on contract extinguishments, net (Details) (USD $)	1 Months Ended		3 Months Ended	9 Months Ended
	Feb. 28, 2011	Jan. 31, 2011	Mar. 31, 2011	Sep. 30, 2011
Gain on contract extinguishments, net (Textuals) [Abstract]
Gain on contract extinguishments, net		$ 32,600,000	$ 52,500,000	$ (21,202,000)
Repayment of Bully credit facilities	693,000,000		693,000,000
Gain recognized on settlement and termination of interest rate swaps			$ 1,300,000	$ 1,000,000

XML

Guarantees of Registered Securities

9 Months Ended

Sep. 30, 2011

Guarantees of Registered Securities [Abstract]

Guarantees of Registered Securities

Note 17 — Guarantees of Registered Securities

Noble-Cayman and Noble Holding (U.S.) Corporation (“NHC”), a wholly-owned subsidiary of Noble-Cayman, are full and unconditional guarantors of NDC’s 7.50% Senior Notes due 2019 which had an outstanding principal balance at September 30, 2011 of $202 million. NDC is a direct, wholly-owned subsidiary of NHC. Noble Drilling Holding LLC (“NDH”), a wholly-owned subsidiary of Noble-Cayman, is also a co-obligor on (and effectively a guarantor of) the 7.50% Senior Notes. Noble Drilling Services 6 LLC (“NDS6”), also a wholly-owned subsidiary of Noble-Cayman, is a co-issuer of the 7.50% Senior Notes.

NDC and NHIL are full and unconditional guarantors of Noble-Cayman’s 5.875% Senior Notes due 2013, which had an outstanding principal balance of $300 million at September 30, 2011. The indenture governing the Senior Notes due 2013 provides that each guarantee may be released in connection with certain events, including upon a merger, consolidation or transfer of all of the assets of Noble Cayman or the guarantor with or to another person in compliance with the indenture (provided the acquiror assumes the guarantee), upon a liquidation of the guarantor in compliance with the indenture (provided any acquiror assumes the guarantee), or upon the guarantor’s ceasing to be a wholly-owned subsidiary of Noble-Cayman.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 7.375% Senior Notes due 2014, which had an outstanding principal balance of $250 million at September 30, 2011.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 3.45% Senior Notes due 2015, 4.90% Senior Notes due 2020 and 6.20% Senior Notes due 2040. The aggregate principal balance of these three tranches of senior notes at September 30, 2011 was $1.25 billion.

Noble-Cayman is a full and unconditional guarantor of NHIL’s 3.05% Senior Notes due 2016, 4.625% Senior Notes due 2021 and 6.05% Senior Notes due 2041. The aggregate principal balance of these three tranches of senior notes at September 30, 2011 was $1.1 billion.

The following consolidating financial statements of Noble-Cayman, NHC and NDH combined, NDC, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2011
(in thousands)

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	—	$	292		$	—		$	—	$	—	$	191,713		$	—		$	192,005
Accounts receivable		—		10,757			3,472			—		—		586,932			—			601,161
Prepaid expenses		—		400			10			—		—		57,121			—			57,531
Short-term notes receivable from affiliates		—		119,476			—			—		—		110,000			(229,476	)		—
Accounts receivable from affiliates		1,182,035		92,282			847,880			150,144		15,737		5,705,679			(7,993,757	)		—
Other current assets		—		6,247			240			—		—		133,538			—			140,025
Total current assets		1,182,035		229,454			851,602			150,144		15,737		6,784,983			(8,223,233	)		990,722
Property and equipment
Drilling equipment, facilities and other		—		2,374,299			71,567			—		—		11,940,555			—			14,386,421
Accumulated depreciation		—		(207,832	)		(52,334	)		—		—		(2,734,320	)		—			(2,994,486	)
Total property and equipment, net		—		2,166,467			19,233			—		—		9,206,235			—			11,391,935
Notes receivable from affiliates		3,487,062		675,000			—			2,336,527		572,107		2,662,901			(9,733,597	)		—
Investments in affiliates		7,185,905		9,133,639			3,510,041			6,370,565		1,899,939		—			(28,100,089	)		—
Other assets		3,660		15,933			2,067			19,087		910		487,484			—			529,141
Total assets	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	60,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(229,476	)	$	—
Accounts payable and accrued liabilities		6,298		24,036			8,116			15,201		630		580,143			—			634,424
Accounts payable to affiliates		1,802,030		3,806,799			26,056			99,896		30,916		2,228,060			(7,993,757	)		—
Total current liabilities		1,868,328		3,880,835			34,172			115,097		31,546		2,927,679			(8,223,233	)		634,424
Long-term debt		1,014,939		—			—			2,595,232		201,695		—			—			3,811,866
Notes payable to affiliates		1,652,000		1,147,500			85,000			975,000		811,000		5,063,097			(9,733,597	)		—
Other liabilities		19,929		24,291			30,177			—		—		443,751			—			518,148
Total liabilities		4,555,196		5,052,626			149,349			3,685,329		1,044,241		8,434,527			(17,956,830	)		4,964,438
Commitments and contingencies
Equity		7,303,466		7,167,867			4,233,594			5,190,994		1,444,452		10,707,076			(28,100,089	)		7,947,360
Total liabilities and equity	$	11,858,662	$	12,220,493		$	4,382,943		$	8,876,323	$	2,488,693	$	19,141,603		$	(46,056,919	)	$	12,911,798

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2010
(in thousands)

													Other
													Non-guarantor
	Noble-		NHC and NDH										Subsidiaries			Consolidating
	Cayman		Combined			NDC			NHIL		NDS6		of Noble			Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	42	$	146		$	—		$	—	$	—	$	333,211		$	—		$	333,399
Accounts receivable		—		6,984			1,795			—		—		378,635			—			387,414
Prepaid expenses		—		310			—			—		—		32,922			—			33,232
Short-term notes receivable from affiliates		—		119,476			—			—		—		75,000			(194,476	)		—
Accounts receivable from affiliates		614,264		73,001			751,623			219,215		11,374		3,801,852			(5,471,329	)		—
Other current assets		—		16,735			240			—		—		133,912			—			150,887
Total current assets		614,306		216,652			753,658			219,215		11,374		4,755,532			(5,665,805	)		904,932
Property and equipment
Drilling equipment, facilities and other		—		1,254,482			70,945			—		—		11,289,547			—			12,614,974
Accumulated depreciation		—		(153,638	)		(50,250	)		—		—		(2,391,066	)		—			(2,594,954	)
Total property and equipment, net		—		1,100,844			20,695			—		—		8,898,481			—			10,020,020
Notes receivable from affiliates		3,507,062		675,000			—			1,239,600		479,107		2,492,900			(8,393,669	)		—
Investments in affiliates		6,835,466		9,150,129			3,561,451			5,618,248		1,879,831		—			(27,045,125	)		—
Other assets		1,872		7,700			2,451			11,336		1,001		318,232			—			342,592
Total assets	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	25,000	$	50,000		$	—		$	—	$	—	$	119,476		$	(194,476	)	$	—
Current maturities of long-term debt		—		—			—			—		—		80,213			—			80,213
Accounts payable and accrued liabilities		1,473		19,218			8,779			31,973		4,413		647,488			—			713,344
Accounts payable to affiliates		1,601,869		2,708,598			30,095			64,192		7,134		1,059,441			(5,471,329	)		—
Total current liabilities		1,628,342		2,777,816			38,874			96,165		11,547		1,906,618			(5,665,805	)		793,557
Long-term debt		339,911		—			—			1,498,066		201,695		646,812			—			2,686,484
Notes payable to affiliates		1,834,500		1,092,000			120,000			550,000		811,000		3,986,169			(8,393,669	)		—
Other liabilities		19,929		48,595			25,485			—		—		432,839			—			526,848
Total liabilities		3,822,682		3,918,411			184,359			2,144,231		1,024,242		6,972,438			(14,059,474	)		4,006,889
Commitments and contingencies
Equity		7,136,024		7,231,914			4,153,896			4,944,168		1,347,071		9,492,707			(27,045,125	)		7,260,655
Total liabilities and equity	$	10,958,706	$	11,150,325		$	4,338,255		$	7,088,399	$	2,371,313	$	16,465,145		$	(41,104,599	)	$	11,267,544

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	38,955		$	5,105		$	—		$	—		$	680,617		$	(19,785	)	$	704,892
Reimbursables		—			691			—			—			—			16,747			—			17,438
Labor contract drilling services		—			4			—			—			—			15,560			—			15,564
Other		—			—			—			—			—			8			—			8
Total operating revenues		—			39,650			5,105			—			—			712,932			(19,785	)		737,902
Operating costs and expenses
Contract drilling services		1,759			10,485			1,883			9,819			—			345,465			(19,785	)		349,626
Reimbursables		—			420			—			—			—			13,551			—			13,971
Labor contract drilling services		—			—			—			—			—			8,053			—			8,053
Depreciation and amortization		—			13,138			937			—			—			151,644			—			165,719
Selling, general and administrative		2,094			1,488			—			9,253			—			4,802			—			17,637
Gain on contract extinguishments, net		—			—			—			—			—			—			—			—
Total operating costs and expenses		3,853			25,531			2,820			19,072			—			523,515			(19,785	)		555,006
Operating income (loss)		(3,853	)		14,119			2,285			(19,072	)		—			189,417			—			182,896
Other income (expense)
Equity earnings in affiliates, net of tax		174,673			226,079			45,818			172,153			(20,624	)		—			(598,099	)		—
Interest expense, net of amounts capitalized		(16,721	)		(15,612	)		(1,285	)		(21,641	)		(7,106	)		(267	)		51,102			(11,530	)
Interest income and other, net		1,615			6,906			(40	)		15,813			2,277			26,415			(51,102	)		1,884
Income before income taxes		155,714			231,492			46,778			147,253			(25,453	)		215,565			(598,099	)		173,250
Income tax provision		—			487			—			—			—			(17,785	)		—			(17,298	)
Net Income		155,714			231,979			46,778			147,253			(25,453	)		197,780			(598,099	)		155,952
Net loss attributable to noncontrolling interests		—			—			—			—			—			(238	)		—			(238	)
Net income attributable to Noble Corporation	$	155,714		$	231,979		$	46,778		$	147,253		$	(25,453	)	$	197,542		$	(598,099	)	$	155,714

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	100,009		$	14,800		$	—		$	—		$	1,770,356		$	(48,118	)	$	1,837,047
Reimbursables		—			3,381			12			—			—			60,458			—			63,851
Labor contract drilling services		—			4			—			—			—			43,119			—			43,123
Other		—			—			—			—			—			766			—			766
Total operating revenues		—			103,394			14,812			—			—			1,874,699			(48,118	)		1,944,787
Operating costs and expenses
Contract drilling services		4,818			31,554			5,681			26,625			—			960,102			(48,118	)		980,662
Reimbursables		—			3,331			—			—			—			46,466			—			49,797
Labor contract drilling services		—			—			—			—			—			25,326			—			25,326
Depreciation and amortization		—			36,330			2,781			—			—			446,899			—			486,010
Selling, general and administrative		5,397			4,206			—			24,756			1			14,450			—			48,810
Gain on contract extinguishments, net					—			—			—			—			(21,202	)		—			(21,202	)
Total operating costs and expenses		10,215			75,421			8,462			51,381			1			1,472,041			(48,118	)		1,569,403
Operating income (loss)		(10,215	)		27,973			6,350			(51,381	)		(1	)		402,658			—			375,384
Other income (expense)
Equity earnings in affiliates, net of tax		350,439			328,452			80,795			344,524			86,932			—			(1,191,142	)		—
Interest expense, net of amounts capitalized		(52,985	)		(45,527	)		(4,824	)		(67,667	)		(22,048	)		(3,284	)		150,935			(45,400	)
Interest income and other, net		4,953			19,376			8			38,557			6,321			85,698			(150,935	)		3,978
Income before income taxes		292,192			330,274			82,329			264,033			71,204			485,072			(1,191,142	)		333,962
Income tax provision		—			6,287			—			—			—			(47,767	)		—			(41,480	)
Net Income		292,192			336,561			82,329			264,033			71,204			437,305			(1,191,142	)		292,482
Net loss attributable to noncontrolling interests		—			—			—			—			—			(290	)		—			(290	)
Net income attributable to Noble Corporation	$	292,192		$	336,561		$	82,329		$	264,033		$	71,204		$	437,015		$	(1,191,142	)	$	292,192

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	23,724		$	5,363		$	—		$	—		$	565,132		$	(9,300	)	$	584,919
Reimbursables		—			388			—			—			—			18,789			—			19,177
Labor contract drilling services		—			—			—			—			—			7,887			—			7,887
Other		—			(107	)		—			—			—			742			—			635
Total operating revenues		—			24,005			5,363			—			—			592,550			(9,300	)		612,618
Operating costs and expenses
Contract drilling services		18,924			8,475			1,657			—			—			296,031			(9,300	)		315,787
Reimbursables		—			127			—			—			—			14,224			—			14,351
Labor contract drilling services		—			—			—			—			—			5,302			—			5,302
Depreciation and amortization		—			9,494			924			—			—			132,641			—			143,059
Selling, general and administrative		—			605			94			(63	)		—			16,079			—			16,715
Total operating costs and expenses		18,924			18,701			2,675			(63	)		—			464,277			(9,300	)		495,214
Operating income (loss)		(18,924	)		5,304			2,688			63			—			128,273			—			117,404
Other income (expense)
Equity earnings in affiliates, net of tax		124,218			155,504			38,484			136,039			35,842			—			(490,087	)		—
Interest expense, net of amounts capitalized		(12,251	)		(14,845	)		(1,859	)		(12,645	)		(1,424	)		(2,668	)		41,545			(4,147	)
Interest income and other, net		1,556			555			—			8,419			2,221			30,004			(41,545	)		1,210
Income before income taxes		94,599			146,518			39,313			131,876			36,639			155,609			(490,087	)		114,467
Income tax provision		—			(18,445	)		—			—			—			(956	)					(19,401	)
Net Income		94,599			128,073			39,313			131,876			36,639			154,653			(490,087	)		95,066
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	94,599		$	128,073		$	39,313		$	131,876		$	36,639		$	154,186		$	(490,087	)	$	94,599

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	72,313		$	12,847		$	—		$	—		$	2,026,515		$	(30,600	)	$	2,081,075
Reimbursables		—			978			61			—			—			56,124			—			57,163
Labor contract drilling services		—			—			—			—			—			23,704			—			23,704
Other		—			5			—			—			—			1,444			—			1,449
Total operating revenues		—			73,296			12,908			—			—			2,107,787			(30,600	)		2,163,391
Operating costs and expenses
Contract drilling services		18,931			27,082			4,793			—			—			819,446			(30,600	)		839,652
Reimbursables		—			1,226			61			—			—			43,172			—			44,459
Labor contract drilling services		—			—			—			—			—			16,570			—			16,570
Depreciation and amortization		—			27,321			2,536			—			—			354,918			—			384,775
Selling, general and administrative		—			51,241			315			56			—			(3,475	)		—			48,137
Total operating costs and expenses		18,931			106,870			7,705			56			—			1,230,631			(30,600	)		1,333,593
Operating income (loss)		(18,931	)		(33,574	)		5,203			(56	)		—			877,156			—			829,798
Other income (expense)
Equity earnings in affiliates, net of tax		732,956			497,191			47,602			768,130			336,350			—			(2,382,229	)		—
Interest expense, net of amounts capitalized		(12,838	)		(50,179	)		(5,516	)		(32,010	)		(1,424	)		(8,852	)		105,697			(5,122	)
Interest income and other, net		5,002			23,312			—			8,419			8,373			66,911			(105,697	)		6,320
Income before income taxes		706,189			436,750			47,289			744,483			343,299			935,215			(2,382,229	)		830,996
Income tax provision		—			(27,537	)		—			—			—			(96,803	)		—			(124,340	)
Net Income		706,189			409,213			47,289			744,483			343,299			838,412			(2,382,229	)		706,656
Net loss attributable to noncontrolling interests		—			—			—			—			—			(467	)		—			(467	)
Net income attributable to Noble Corporation	$	706,189		$	409,213		$	47,289		$	744,483		$	343,299		$	837,945		$	(2,382,229	)	$	706,189

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2011
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(40,060	)	$	23,345		$	7,041		$	(105,014	)	$	(19,420	)	$	636,982		$	—		$	502,874
Cash flows from investing activities
New construction and capital expenditures		—			(1,124,826	)		—			—			—			(906,990	)		—			(2,031,816	)
Notes receivable from affiliates		20,000			—			—			(1,096,927	)		—			200,000			876,927			—
Refund from contract extinguishments		—			—			—			—			—			18,642			—			18,642
Net cash from investing activities		20,000			(1,124,826	)		—			(1,096,927	)		—			(688,348	)		876,927			(2,013,174	)
Cash flows from financing activities
Increase in bank credit facilities, net		675,000			—			—			—			—			—			—			675,000
Proceeds from issuance of senior notes, net		—			—			—			1,087,833			—			—			—			1,087,833
Contributions from joint venture partners		—			—			—			—			—			481,000			—			481,000
Payments of joint venture debt		—			—			—			—			—			(693,494	)		—			(693,494	)
Settlement of interest rate swaps		—			—			—			—			—			(29,032	)		—			(29,032	)
Financing cost on credit facilities		(2,835	)		—			—			—			—			—			—			(2,835	)
Distributions to parent		(149,566	)		—			—			—			—			—			—			(149,566	)
Advances (to) from affiliates		(355,081	)		1,119,127			27,959			114,108			19,420			(925,533	)		—			—
Notes payable to affiliates		(147,500	)		(17,500	)		(35,000	)		—			—			1,076,927			(876,927	)		—
Net cash from financing activities		20,018			1,101,627			(7,041	)		1,201,941			19,420			(90,132	)		(876,927	)		1,368,906
Net change in cash and cash equivalents		(42	)		146			—			—			—			(141,498	)		—			(141,394	)
Cash and cash equivalents, beginning of period		42			146			—			—			—			333,211			—			333,399
Cash and cash equivalents, end of period	$	—		$	292		$	—		$	—		$	—		$	191,713		$	—		$	192,005

NOBLE CORPORATION (NOBLE-CAYMAN) AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2010
(in thousands)

																Other
																Non-guarantor
	Noble-			NHC and NDH												Subsidiaries			Consolidating
	Cayman			Combined			NDC			NHIL			NDS6			of Noble			Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(6,194	)	$	(57,507	)	$	(3,907	)	$	(26,975	)	$	3,258		$	1,372,073		$	—		$	1,280,748
Cash flows from investing activities
New construction and capital expenditures		—			(381,928	)		—			—			—			(499,482	)		—			(881,410	)
Notes receivable from affiliates		—			—			—			(1,239,600	)		—			(490,000	)		1,729,600			—
Acquisition of FDR Holdings, Ltd., net of cash acquired		(1,629,644	)		—			—			—			—			—			—			(1,629,644	)
Net cash from investing activities		(1,629,644	)		(381,928	)		—			(1,239,600	)		—			(989,482	)		1,729,600			(2,511,054	)
Cash flows from financing activities
Proceeds from issuance of senior notes, net		—			—			—			1,238,074			—			—			—			1,238,074
Contributions from joint venture partners		—			—			—			—			—			35,000			—			35,000
Settlement of interest rate swaps		—			—			—			—			—			(2,041	)		—			(2,041	)
Distributions to parent		(422,537	)																				(422,537	)
Advances (to) from affiliates		328,813			439,401			3,907			28,501			(3,258	)		(797,364	)		—			—
Notes payable to affiliates		1,729,600			—			—			—			—			—			(1,729,600	)		—
Net cash from financing activities		1,635,876			439,401			3,907			1,266,575			(3,258	)		(764,405	)		(1,729,600	)		848,496
Net change in cash and cash equivalents		38			(34	)		—			—			—			(381,814	)		—			(381,810	)
Cash and cash equivalents, beginning of period		3			268			—			—			—			725,954						726,225
Cash and cash equivalents, end of period	$	41		$	234		$	—		$	—		$	—		$	344,140		$	—		$	344,415

XML

Consolidated Statement of Comprehensive Income (Unaudited) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net income	$ 135,555	$ 86,487	$ 244,185	$ 675,138
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(4,929)	4,198	(547)	(2,263)
Gain (loss) on foreign currency forward contracts	(9,654)	4,762	(7,141)	1,828
Loss on interest rate swaps		(7,586)	(366)	(7,586)
Amortization of deferred pension plan amounts	687	634	2,062	1,908
Other comprehensive income (loss), net	(13,896)	2,008	(5,992)	(6,113)
Net income attributable to noncontrolling interests	(238)	(467)	(290)	(467)
Comprehensive income attributable to Noble Corporation	121,421	88,028	237,903	668,558
Noble-Cayman [Member]
Net income	155,952	95,066	292,482	706,656
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(4,929)	4,198	(547)	(2,263)
Gain (loss) on foreign currency forward contracts	(9,654)	4,762	(7,141)	1,828
Loss on interest rate swaps		(7,586)	(366)	(7,586)
Amortization of deferred pension plan amounts	687	634	2,062	1,908
Other comprehensive income (loss), net	(13,896)	2,008	(5,992)	(6,113)
Net income attributable to noncontrolling interests	(238)	(467)	(290)	(467)
Comprehensive income attributable to Noble Corporation	$ 141,818	$ 96,607	$ 286,200	$ 700,076

XML

Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 9 — Income Taxes

At December 31, 2010, the reserves for uncertain tax positions totaled $145 million (net of related tax benefits of $8 million). At September 30, 2011, the reserves for uncertain tax positions totaled $122 million (net of related tax benefits of $8 million). If the September 30, 2011 reserves are not realized, the provision for income taxes would be reduced by $122 million.

It is possible that our existing liabilities related to our reserve for uncertain tax position amounts may increase or decrease in the next twelve months primarily from the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities for various uncertainties, such as the unresolved nature of various audits.

XML

Derivative Instruments and Hedging Activities (Details Textuals) (USD $)	3 Months Ended	9 Months Ended						3 Months Ended		9 Months Ended
	Mar. 31, 2011	Sep. 30, 2011 DebtAgreements JointVentures Phases Tranches Rigs LegalMatter	Jun. 30, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Dec. 31, 2009	Sep. 30, 2011 Cash flow hedges [Member]	Sep. 30, 2010 Cash flow hedges [Member]	Sep. 30, 2011 Cash flow hedges [Member]	Sep. 30, 2010 Cash flow hedges [Member]	Sep. 30, 2011 Forward Contracts [Member]
Derivative [Line Items]
Forward contracts settling in remainder of current year as percent of forecasted local currency requirements										43.00%
Total unrealized gains related to forward contracts and recorded as part of "Accumulated other comprehensive loss"		$ (5,537,000)	$ 4,117,000	$ 1,970,000	$ (5,341,000)	$ (2,517,000)	$ 417,000					$ 6,000,000
Gain/(loss) on fair value hedges recognized in the income statement								0	0	0	0
Derivative Instruments and Hedging Activities (Textuals) [Abstract]
Aggregate notional amount of forward contracts outstanding		71,000,000
Number of joint ventures acquired		2
Gain recognized on settlement and termination of interest rate swaps	1,300,000	1,000,000
Number of phases of drillship construction		2
Number of Bully-class dynamically positioned joint venture-owned drillships under construction		2
Notional amount of foreign currency derivative instruments not designated as hedging instruments		0
Loss recognized for foreign exchange forward contracts		500,000
Cash outflows recognized through the financing section of the cash flow statement related to interest rate swaps		$ 29,000,000

XML

Net Change in Other Assets and Liabilities (Details) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Effect of changes in other assets and liabilities on cash flows from operating activities
Accounts receivable	$ (213,747)	$ 250,917
Other current assets	(23,900)	(22,962)
Other assets	(21,755)	(6,600)
Accounts payable	(23,744)	(12,635)
Other current liabilities	21,281	(9,105)
Other liabilities	33,566	28,258
Net change in other assets and liabilities	(228,299)	227,873
Noble-Cayman [Member]
Effect of changes in other assets and liabilities on cash flows from operating activities
Accounts receivable	(213,747)	250,924
Other current assets	(20,578)	(21,001)
Other assets	(24,233)	(6,705)
Accounts payable	(23,654)	(20,773)
Other current liabilities	13,655	(27,543)
Other liabilities	33,540	28,482
Net change in other assets and liabilities	$ (235,017)	$ 203,384

XML

Net Change in Other Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2011

Net Change in Other Assets and Liabilities [Abstract]

Effect of changes in other assets and liabilities on cash flows from operating activities

The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:

	Noble-Swiss						Noble-Cayman
	Nine months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Accounts receivable	$	(213,747	)	$	250,917		$	(213,747	)	$	250,924
Other current assets		(23,900	)		(22,962	)		(20,578	)		(21,001	)
Other assets		(21,755	)		(6,600	)		(24,233	)		(6,705	)
Accounts payable		(23,744	)		(12,635	)		(23,654	)		(20,773	)
Other current liabilities		21,281			(9,105	)		13,655			(27,543	)
Other liabilities		33,566			28,258			33,540			28,482
	$	(228,299	)	$	227,873		$	(235,017	)	$	203,384

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 13 — Commitments and Contingencies

As noted in Note 7, in May 2010 Anadarko sent a letter asserting that the initial attempted deepwater drilling moratorium in the U.S. Gulf of Mexico was an event of force majeure under the drilling contract for the Noble Amos Runner. In June 2010, Anadarko filed a declaratory judgment action in Federal District Court in Houston, Texas seeking to have the court declare that a force majeure condition had occurred and that the drilling contract was terminated by virtue of the initial proclaimed moratorium. We disagree that a force majeure event occurred and that Anadarko had the right to terminate the contract. In August 2010, we filed a counterclaim seeking damages from Anadarko for breach of contract. Anadarko has also attempted to offset approximately $13 million that we had billed for services performed prior to their termination of the contract. We do not believe Anadarko has a basis to offset these invoiced amounts. As a result of the uncertainties noted above, we have not recognized any revenue under the portion of this contract relating to the period after termination and the matter could have a material positive effect on our results of operations or cash flows for the period in which the matter is resolved should the court ultimately rule in our favor.

The Noble Homer Ferrington is under contract with a subsidiary of ExxonMobil Corporation (“ExxonMobil”), who entered into an assignment agreement with BP for a two well farm-out of the rig in Libya after successfully drilling two wells with the rig for ExxonMobil. In August 2010, BP attempted to terminate the assignment agreement claiming that the rig was not in the required condition. ExxonMobil has informed us that we must look to BP for payment of the dayrate during the assignment period. In August 2010, we initiated arbitration proceedings under the drilling contract against both BP and ExxonMobil. We do not believe BP had the right to terminate the assignment agreement and believe the rig continued to be fully ready to operate under the drilling contract. The rig has been operating under farm-out arrangements since March 2011. We believe we are owed dayrate by either or both of these clients. The operating dayrate was approximately $538,000 per day for the work in Libya. We are proceeding with the arbitration process and intend to vigorously pursue these claims. As a result of the uncertainties noted above, we have not recognized any revenue during the assignment period and the matter could have a material positive effect on our results of operations or cash flows in the period the matter is resolved should the arbitration panel ultimately rule in our favor.

In August 2007, we entered into a drilling contract with Marathon Oil Company (“Marathon”) for the Noble Jim Day to operate in the U.S. Gulf of Mexico. On January 1, 2011, Marathon provided notice that it was terminating the contract. Marathon’s stated reason for the termination was that the rig had not been accepted by Marathon by December 31, 2010, and Marathon also maintained that a force majeure condition existed under the contract. The contract contained a provision allowing Marathon to terminate if the rig had not commenced operations by December 31, 2010. We believe the rig was ready to commence operations and should have been accepted by Marathon. The contract term was for four years and represented approximately $752 million in contract backlog at the time of termination. No revenue has been recognized under this contract. In March 2011, we filed suit in Texas State District Court against Marathon seeking damages for its actions, and the suit is proceeding. We cannot provide assurance as to the outcome of this lawsuit.

During the fourth quarter of 2007, our Nigerian subsidiary received letters from the Nigerian Maritime Administration and Safety Agency (“NIMASA”) seeking to collect a two percent surcharge on contract amounts under contracts performed by “vessels,” within the meaning of Nigeria’s cabotage laws, engaged in the Nigerian coastal shipping trade. Although we do not believe that these laws apply to our ownership of drilling units, NIMASA is seeking to apply a provision of the Nigerian cabotage laws (which became effective on May 1, 2004) to our offshore drilling units by considering these units to be “vessels” within the meaning of those laws and therefore subject to the surcharge, which is imposed only upon “vessels.” Our offshore drilling units are not engaged in the Nigerian coastal shipping trade and are not in our view “vessels” within the meaning of Nigeria’s cabotage laws. In January 2008, we filed an originating summons against NIMASA and the Minister of Transportation in the Federal High Court of Lagos, Nigeria seeking, among other things, a declaration that our drilling operations do not constitute “coastal trade” or “cabotage” within the meaning of Nigeria’s cabotage laws and that our offshore drilling units are not “vessels” within the meaning of those laws. In February 2009, NIMASA filed suit against us in the Federal High Court of Nigeria seeking collection of the cabotage surcharge. In August 2009, the court issued a favorable ruling in response to our originating summons stating that drilling operations do not fall within the cabotage laws and that drilling rigs are not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or drilling operations. NIMASA has appealed the court’s ruling, although the court dismissed NIMASA’s lawsuit filed against us in February 2009. We intend to take all further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling units. The outcome of any such legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling units constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of the Nigerian cabotage laws, which could adversely affect our operations in Nigerian waters and require us to incur additional costs of compliance.

NIMASA had also informed the Nigerian Content Division of its position that we are not in compliance with the cabotage laws. The Nigerian Content Division makes determinations of companies’ compliance with applicable local content regulations for purposes of government contracting, including contracting for services in connection with oil and gas concessions where the Nigerian national oil company is a partner. The Nigerian Content Division had originally barred us from participating in new tenders as a result of NIMASA’s allegations, although the Division reversed its actions based on the favorable Federal High Court ruling. However, no assurance can be given with respect to our ability to bid for future work in Nigeria until our dispute with NIMASA is resolved. Further, we continue to evaluate the local content regulations in Nigeria, which could also affect our ability to operate there and our profitability earned from Nigeria.

In November 2010, we concluded our contract for the Noble Duchess in Nigeria. Following the contract, we commenced the exportation process for the rig. The Nigerian Customs Service delayed departure of the rig while we discussed certain spare items that they claimed were unaccounted for and for which duty would be due. We resolved this matter for an immaterial amount and exported the rig during the third quarter of 2011.

We are from time to time a party to various lawsuits that are incidental to our operations in which the claimants seek an unspecified amount of monetary damages for personal injury, including injuries purportedly resulting from exposure to asbestos on drilling rigs and associated facilities. At September 30, 2011, there were approximately 22 asbestos related lawsuits in which we are one of many defendants. These lawsuits have been filed in the United States in the states of Louisiana, Mississippi and Texas. We intend to vigorously defend against the litigation. We do not believe the ultimate resolution of these matters will have a material adverse effect on our financial position, results of operations or cash flows.

We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, including certain disputes with customers over receivables discussed in Note 7, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.

We operate in a number of countries throughout the world and our income tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. Our 2008 tax return is currently under audit by the U.S. Internal Revenue Service. In addition, a U.S. subsidiary of Frontier is also under audit for its 2007 and 2008 tax returns. Furthermore, we are currently contesting several non-U.S. tax assessments and may contest future assessments when we believe the assessments are in error. We cannot predict or provide assurance as to the ultimate outcome of the existing or future assessments. We believe the ultimate resolution of the outstanding assessments, for which we have not made any accrual, will not have a material adverse effect on our consolidated financial statements. We recognize uncertain tax positions that we believe have a greater than 50 percent likelihood of being sustained.

Certain of our non-U.S. income tax returns have been examined for the 2002 through 2008 periods and audit claims have been assessed for approximately $286 million (including interest and penalties), primarily in Mexico. We do not believe we owe these amounts and are defending our position. However, we expect increased audit activity in Mexico and anticipate the tax authorities will issue additional assessments and continue to pursue legal actions for all audit claims. We believe additional audit claims in the range of $9 to $10 million attributable to other business tax returns may be assessed against us. We have contested, or intend to contest, the audit findings, including through litigation if necessary, and we do not believe that there is greater than 50 percent likelihood that additional taxes will be incurred. Accordingly, no accrual has been made for such amounts.

We maintain certain insurance coverage against specified marine perils, including liability for physical damage to our drilling rigs, and loss of hire on certain of our rigs. The damage caused in 2005 and 2008 by Hurricanes Katrina, Rita and Ike negatively impacted the energy insurance market, resulting in more restrictive and expensive coverage for U.S. named windstorm perils. Accordingly, effective March 2009, we elected to self-insure this exposure to our units in the U.S. portion of the Gulf of Mexico. Our rigs located in the Mexican portion of the Gulf of Mexico remain covered by commercial insurance for windstorm damage. In addition, we maintain physical damage deductibles of $25 million per occurrence for rigs located in the U.S., Mexico, Brazil, Southeast Asia, the North Sea, New Zealand and Australia and $15 million per occurrence for rigs operating in West Africa, the Middle East, India, and the Mediterranean Sea. The loss of hire coverage applies only to our rigs operating under contract with a dayrate equal to or greater than $200,000 a day and is subject to a 45-day waiting period for each unit and each occurrence.

Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property on board our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows. Additionally, there can be no assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks.

In October 2011, we were assessed a fine by the Brazilian government in the amount of R$238,000 (approximately $135,000) in connection with the inadvertent discharge of approximately 200 barrels of drilling fluid from one of our vessels offshore Brazil in November 2010. We plan on appealing this judgment to the full extent permissible by law.

We carry protection and indemnity insurance covering marine third party liability exposures, which also includes coverage for employer’s liability resulting from personal injury to our offshore drilling crews. Our protection and indemnity policy currently has a standard deductible of $10 million per occurrence, with maximum liability coverage of $750 million.

In connection with our capital expenditure program, we had outstanding commitments, including shipyard and purchase commitments of approximately $3.4 billion at September 30, 2011.

We have entered into agreements with certain of our executive officers, as well as certain other employees. These agreements become effective upon a change of control of Noble-Swiss (within the meaning set forth in the agreements) or a termination of employment in connection with or in anticipation of a change of control, and remain effective for three years thereafter. These agreements provide for compensation and certain other benefits under such circumstances.

Internal Investigation

In 2007, we began, and voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of an internal investigation of the legality under the United States Foreign Corrupt Practices Act (“FCPA”) and local laws of certain reimbursement payments made by our Nigerian affiliate to our customs agents in Nigeria. In 2010, we finalized settlements of this matter with each of the SEC and the DOJ. Pursuant to these settlements, we agreed to pay fines and penalties to the DOJ and the SEC and to certain undertakings, including refraining from violating the FCPA and other anti-corruption laws, self-reporting any violations of the FCPA or such laws to the DOJ and reporting to the DOJ on an annual basis our progress on anti-corruption compliance matters. Our ability to comply with the terms of the settlements is dependent on the success of our ongoing compliance program, including our ability to continue to manage our agents and supervise, train and retain competent employees, and the efforts of our employees to comply with applicable law and our code of business conduct and ethics.

In January 2011, the Nigerian Economic and Financial Crimes Commission and the Nigerian Attorney General Office initiated an investigation into these same activities. A subsidiary of Noble-Swiss resolved this matter through the execution of a non-prosecution agreement dated January 28, 2011. Pursuant to this agreement, the subsidiary paid $2.5 million to resolve all charges and claims of the Nigerian government.

Any similar investigations or charges and any additional sanctions we may incur as a result of any such investigation could damage our reputation and result in substantial fines, sanctions, civil and/or criminal penalties and curtailment of operations in certain jurisdictions and might adversely affect our business, results of operations or financial condition. Further, resolving any such investigation could be expensive and consume significant time and attention of our senior management.

As of September 30, 2011, all of our rigs operating in Nigeria were operating under temporary import permits. To date, we have been successful in obtaining new, or extending existing, temporary import permits. However, there can be no assurance that we will be able to obtain new permits or further extensions of permits necessary to continue the operation of our rigs in Nigeria. If we cannot obtain a new permit or an extension necessary to continue operations of any rig, we may need to cease operations under the drilling contract for such rig and relocate such rig from Nigerian waters. We cannot predict what impact these events may have on any such contract or our business in Nigeria, and we could face additional fines and sanctions in Nigeria. Furthermore, we cannot predict what changes, if any, relating to temporary import permit policies and procedures may be established or implemented in Nigeria in the future, or how any such changes may impact our business there.

XML

Consolidated Balance Sheet (Unaudited) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 197,015	$ 337,871
Accounts receivable	601,161	387,414
Taxes receivable	57,335	81,066
Prepaid expenses	61,166	35,502
Other current assets	84,767	69,941
Total current assets	1,001,444	911,794
Property and equipment, at cost	14,420,267	12,643,866
Accumulated depreciation	(2,999,235)	(2,595,779)
Property and equipment, net	11,421,032	10,048,087
Other assets	529,057	342,506
Total assets	12,951,533	11,302,387
Current liabilities
Current maturities of long-term debt	0	80,213
Accounts payable	320,053	374,814
Accrued payroll and related costs	124,317	125,663
Interest payable	22,129	40,260
Taxes payable	89,700	96,448
Other current liabilities	93,651	84,049
Total current liabilities	649,850	801,447
Long-term debt	3,811,866	2,686,484
Deferred income taxes	299,625	258,822
Other liabilities	218,523	268,000
Total liabilities	4,979,864	4,014,753
Commitments and contingencies
Shareholders' equity
Shares; 252,718 and 262,415 shares outstanding	796,067	917,684
Treasury shares, at cost; 285 and 10,140 shares	(10,531)	(373,967)
Additional paid-in capital	49,010	39,006
Retained earnings	6,549,441	6,630,500
Accumulated other comprehensive loss	(56,212)	(50,220)
Total shareholders' equity	7,327,775	7,163,003
Noncontrolling interests	643,894	124,631
Total equity	7,971,669	7,287,634
Total liabilities and equity	12,951,533	11,302,387
Noble-Cayman [Member]
Current assets
Cash and cash equivalents	192,005	333,399
Accounts receivable	601,161	387,414
Taxes receivable	57,335	81,066
Prepaid expenses	57,531	33,232
Other current assets	82,690	69,821
Total current assets	990,722	904,932
Property and equipment, at cost	14,386,421	12,614,974
Accumulated depreciation	(2,994,486)	(2,594,954)
Property and equipment, net	11,391,935	10,020,020
Other assets	529,141	342,592
Total assets	12,911,798	11,267,544
Current liabilities
Current maturities of long-term debt	0	80,213
Accounts payable	319,888	374,559
Accrued payroll and related costs	112,902	120,634
Interest payable	22,129	40,260
Taxes payable	86,321	94,132
Other current liabilities	93,184	83,759
Total current liabilities	634,424	793,557
Long-term debt	3,811,866	2,686,484
Deferred income taxes	299,625	258,822
Other liabilities	218,523	268,026
Total liabilities	4,964,438	4,006,889
Commitments and contingencies
Shareholders' equity
Ordinary shares; 261,246 shares outstanding	26,125	26,125
Additional paid-in capital	447,040	416,232
Retained earnings	6,886,513	6,743,887
Accumulated other comprehensive loss	(56,212)	(50,220)
Total shareholders' equity	7,303,466	7,136,024
Noncontrolling interests	643,894	124,631
Total equity	7,947,360	7,260,655
Total liabilities and equity	$ 12,911,798	$ 11,267,544

XML

Organization and Basis of Presentation (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2011 Rigs Tranches LegalMatter	Dec. 31, 2010
Organization and Basis of Presentation (Textuals) [Abstract]
Number of mobile offshore drilling units	79
Number of Floating Production Storage and Offloading units ("FPSO")	1
Number of semisubmersibles	14
Number of drillships	14
Number of jackups	49
Number of submersibles	2
Number of offshore drilling units under construction	13
Number of Bully-class dynamically positioned joint venture-owned drillships under construction	1
Number of Globetrotter - class dynamically positioned joint venture-owned drillships under construction	2
Number of ultra-deep water harsh environment drillships under construction	7
Number of Harsh Environment Jackup Rigs under Construction	6
Taxes receivable against outstanding taxes receivable	$ 57,335	$ 81,066

XML

Income Taxes (Details) (USD $) In Millions	9 Months Ended
	Sep. 30, 2011	Dec. 31, 2010
Income Taxes (Textuals)
Reserves for uncertain tax positions net	$ 122	$ 145
Relaxed tax benefits	8	8
Reduction in the provision for income taxes, if reserves not realized	$ 122
Operational period	12 months

XML

Commitments and Contingencies (Details)	1 Months Ended		9 Months Ended
	Oct. 31, 2011 USD ($) bbl Rigs Tranches LegalMatter	Oct. 31, 2011 BRL bbl	Sep. 30, 2011 USD ($) DebtAgreements JointVentures Phases Tranches Rigs LegalMatter	Sep. 30, 2011 Anadarko Petroleum Corporation [Member] USD ($)	Sep. 30, 2011 Maximum [Member] USD ($)	Sep. 30, 2011 Minimum [Member] USD ($)
Receivables From Major Customers [Line Items]
Accounts receivables related to attempted offset				$ 13,000,000
Income Tax Examination [Line Items]
Audit claims, additional attributable to other business tax returns					10,000,000	9,000,000
Commitments and Contingencies (Textuals) [Abstract]
Operating dayrate (per day)			538,000
Drilling contract backlog at the time of termination drilling contract backlog at the time of termination			752,000,000
Drilling contract term			4 years
NIMASA surcharge on contracts performed by "vessels" in Nigerian coastal shipping trade; overturned and dismissed by Federal High Court of Nigeria			2.00%
Number of asbestos lawsuits in which we are one of many defendants			22
Percentage of uncertain tax positions likelihood of being sustained			50.00%
Non-U.S. tax audit claims (including interest and penalties), primarily in Mexico			286,000,000
Likelihood of additional taxes to be incurred on audit findings, percentage			50.00%
Physical damage deductible per occurrence for rigs located in the U.S., Mexico, Brazil,			25,000,000
Physical damage deductibles occurrence for rigs operating in West Africa, the Middle East, India, and the Mediterranean Sea			15,000,000
Loss of hire coverage applies only to 'rigs' operating under day rate			200,000
Number of days waiting period			45 days
Amount of fine assessed by the foreign government	135,000	238,000
Number of drilling fluid in advertent discharges from vessels	200	200
Protection and indemnity policy, standard deductible (per occurrence)			10,000,000
Maximum liability coverage under protection and indemnity policy			750,000,000
Outstanding commitments including shipyard and purchase commitments			3,400,000,000
Number of new build units to be constructed			2
Years of effectiveness of employment agreements after the termination of employment			3 years
Payment by subsidiary to resolve all charges of Nigerian government			$ 2,500,000

XML

Receivables from Customers (Details) (USD $) In Millions	1 Months Ended
	Jun. 30, 2010	Sep. 30, 2011
Receivables from Customers (Textuals) [Abstract]
Minimum days for charter contract with FPSO	100 days
Hiring date of the new unit	Jul. 23, 2010
Outstanding receivables		$ 35
Anadarko Petroleum Corporation [Member]
Receivables From Major Customers [Line Items]
Accounts receivables related to attempted offset		13
Pemex Exploracion Y Produccion [Member]
Receivables From Major Customers [Line Items]
Accounts receivables related to attempted offset		$ 14

XML

Debt (Details) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Long-term debt
Debt	$ 3,811,866	$ 2,766,697
Less: Current Maturities	0	(80,213)
Long-term debt	3,811,866	2,686,484
5.875% Senior Notes due 2013 [Member]
Long-term debt
Debt	299,939	299,911
7.375% Senior Notes due 2014 [Member]
Long-term debt
Debt	249,610	249,506
3.45% Senior Notes due 2015 [Member]
Long-term debt
Debt	350,000	350,000
3.05% senior notes due 2016 [Member]
Long-term debt
Debt	299,934	0
7.50% Senior Notes due 2019 [Member]
Long-term debt
Debt	201,695	201,695
4.90% Senior Notes due 2020 [Member]
Long-term debt
Debt	498,754	498,672
4.625% senior notes due 2021 [Member]
Long-term debt
Debt	399,469	0
6.20% Senior Notes due 2040 [Member]
Long-term debt
Debt	399,890	399,889
6.05% senior notes due 2041 [Member]
Long-term debt
Debt	397,575	0
Wholly-owned debt instruments, Credit facilities [Member]
Long-term debt
Debt	715,000	40,000
Joint Venture Credit Facilities [Member]
Long-term debt
Debt	0	691,052
Joint Venture Partner Notes [Member]
Long-term debt
Debt	$ 0	$ 35,972

XML

Derivative Instruments and Hedging Activities (Details 2) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Derivative Instruments, Gain (Loss) [Line Items]
Net unrealized gain/(loss) on outstanding interest rate swaps		$ (7,586)	$ (366)	$ (7,586)
Foreign currency forward contracts [Member] | Cash flow hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net unrealized gain/(loss) on outstanding interest rate swaps	(7,600)	4,762	(5,537)	1,828
Gain/(loss) reclassified from AOCL to "other income"	2,054		1,604
Gain/(loss) recognized through "other income"
Non-designated derivatives [Member] | Foreign currency forward contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net unrealized gain/(loss) on outstanding interest rate swaps
Gain/(loss) reclassified from AOCL to "other income"
Gain/(loss) recognized through "other income"		1,234	(546)	1,234
Cash flow hedges [Member] | Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net unrealized gain/(loss) on outstanding interest rate swaps		(7,586)		(7,586)
Gain/(loss) reclassified from AOCL to "other income"			366
Gain/(loss) recognized through "other income"		$ (261)		$ (261)

XML

Acquisition of FDR Holdings Limited (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2010	Sep. 30, 2011 Rigs Tranches LegalMatter	Jul. 28, 2010
Pro forma financial information
Total operating revenues	$ 647,700,000	$ 2,339,889,000
Net income	85,282,000	616,358,000
Net income per share	$ 0.33	$ 2.40
Acquisition of FDR Holdings Limited (Textuals) [Abstract]
Number of Bully-class dynamically positioned joint venture-owned drillships under construction			2
Purchase price paid with cash				1,700,000,000
Cash paid at closing of acquisition				$ 1,700,000,000