Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

Note 26—Condensed Consolidating Financial Information

Transocean Inc., a wholly owned subsidiary of Transocean Ltd., is the issuer of certain notes and debentures, which have been guaranteed by Transocean Ltd.  Transocean Ltd. has also guaranteed borrowings under the commercial paper program and the Five-Year Revolving Credit Facility.  Transocean Ltd.’s guarantee of debt securities of Transocean Inc. is full and unconditional.  Transocean Ltd. is not subject to any significant restrictions on its ability to obtain funds from its consolidated subsidiaries or entities accounted for under the equity method by dividends, loans or return of capital distributions.

The following tables present condensed consolidating financial information for (a) Transocean Ltd. (the “Parent Guarantor”), (b) Transocean Inc. (the “Subsidiary Issuer”), and (c) the other direct and indirect wholly owned and partially owned subsidiaries of the Parent Guarantor, none of which guarantee any indebtedness of the Subsidiary Issuer (the “Other Subsidiaries”), as well as (d) the consolidating adjustments necessary to present the condensed financial statements on a consolidated basis.  The condensed consolidating financial information may not necessarily be indicative of the results of operations, financial position or cash flows had the subsidiaries operated as independent entities.

	Year ended December 31, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Operating revenues	$	—		$	—		$	9,160		$	(18	)	$	9,142
Cost and expenses	44			4			8,663			(18		)	8,693
Loss on impairment	—			—			(5,229		)	—			(5,229		)
Gain on disposal of assets, net	—			—			4			—			4
Operating loss	(44		)	(4		)	(4,728		)	—			(4,776		)
Other income (expense), net
Interest expense, net	(11		)	(510		)	(56		)	—			(577		)
Equity in earnings	(5,670		)	(5,145		)	18			10,815			18
Other, net	—			9			(108		)	—			(99		)
	(5,681		)	(5,646		)	(146		)	10,815			(658		)
Loss from continuing operations before income tax expense	(5,725		)	(5,650		)	(4,874		)	10,815			(5,434		)
Income tax expense	—			—			395			—			395
Loss from continuing operations	(5,725		)	(5,650		)	(5,269		)	10,815			(5,829		)
Income from discontinued operations, net of tax	—			—			197			—			197
Net loss	(5,725		)	(5,650		)	(5,072		)	10,815			(5,632		)
Net income attributable to noncontrolling interest	—			—			93			—			93
Net loss attributable to controlling interest	$	(5,725	)	$	(5,650	)	$	(5,165	)	$	10,815		$	(5,725	)

	Year ended December 31, 2010
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Operating revenues	$	—		$	—		$	9,481		$	(15	)	$	9,466
Cost and expenses	45			3			6,823			(15		)	6,856
Loss on impairment	—			—			(1,010		)	—			(1,010		)
Gain on disposal of assets, net	—			—			257			—			257
Operating income (loss)	(45		)	(3		)	1,905			—			1,857
Other income (expense), net
Interest income (expense), net	1			(494		)	(51		)	—			(544		)
Equity in earnings	1,005			1,519			8			(2,524		)	8
Other, net	—			(7		)	(24		)	—			(31		)
	1,006			1,018			(67		)	(2,524		)	(567		)
Income from continuing operations before income tax expense	961			1,015			1,838			(2,524		)	1,290
Income tax expense	—			—			336			—			336
Income from continuing operations	961			1,015			1,502			(2,524		)	954
Income from discontinued operations, net of tax	—			—			34			—			34
Net income	961			1,015			1,536			(2,524		)	988
Net income attributable to noncontrolling interest	—			—			27			—			27
Net income attributable to controlling interest	$	961		$	1,015		$	1,509		$	(2,524	)	$	961

	Year ended December 31, 2009
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Operating revenues	$	—		$	—		$	11,455		$	(14	)	$	11,441
Cost and expenses	26			4			6,692			(14		)	6,708
Loss on impairment	—			—			(334		)	—			(334		)
Loss on disposal of assets, net	—			—			(9		)	—			(9		)
Operating income (loss)	(26		)	(4		)	4,420			—			4,390
Other income (expense), net
Interest income (expense), net	1			(521		)	41			—			(479		)
Equity in earnings	3,206			3,773			6			(6,979		)	6
Other, net	—			(43		)	45			—			2
	3,207			3,209			92			(6,979		)	(471		)
Income from continuing operations before income tax expense	3,181			3,205			4,512			(6,979		)	3,919
Income tax expense	—			—			723			—			723
Income from continuing operations	3,181			3,205			3,789			(6,979		)	3,196
Loss from discontinued operations, net of tax	—			—			(26		)	—			(26		)
Net income	3,181			3,205			3,763			(6,979		)	3,170
Net loss attributable to noncontrolling interest	—			—			(11		)	—			(11		)
Net income attributable to controlling interest	$	3,181		$	3,205		$	3,774		$	(6,979	)	$	3,181

	December 31, 2011
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated
Assets
Cash and cash equivalents	$	3	$	2,793	$	1,221	$	—		$	4,017
Other current assets	8		784		4,493		(1,693		)	3,592
Total current assets	11		3,577		5,714		(1,693		)	7,609
Property and equipment, net	1		—		22,528		—			22,529
Goodwill	—		—		3,205		—			3,205
Investment in affiliates	16,503		27,582		—		(44,085		)	—
Other assets	—		1,368		17,908		(17,531		)	1,745
Total assets	16,515		32,527		49,355		(63,309		)	35,088
Liabilities and equity
Debt due within one year	—		1,693		346		—			2,039
Other current liabilities	294		367		4,351		(1,693		)	3,319
Total current liabilities	294		2,060		4,697		(1,693		)	5,358
Long-term debt	495		14,308		14,225		(17,531		)	11,497
Other long-term liabilities	25		439		1,962		—			2,426
Total long-term liabilities	520		14,747		16,187		(17,531		)	13,923
Commitments and contingencies
Redeemable noncontrolling interest	—		—		116		—			116
Total equity	15,701		15,720		28,355		(44,085		)	15,691
Total liabilities and equity	$	16,515	$	32,527	$	49,355	$	(63,309	)	$	35,088

	December 31, 2010
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated
Assets
Cash and cash equivalents	$	38	$	2,041	$	1,315	$	—		$	3,394
Other current assets	12		788		3,189		(1,188		)	2,801
Total current assets	50		2,829		4,504		(1,188		)	6,195
Property and equipment, net	1		—		21,318		—			21,319
Goodwill	—		—		8,132		—			8,132
Investment in affiliates	21,373		33,473		19		(54,846		)	19
Other assets	—		1,017		14,001		(13,872		)	1,146
Total assets	21,424		37,319		47,974		(69,906		)	36,811
Liabilities and equity
Debt due within one year	—		1,891		121		—			2,012
Other current liabilities	21		444		2,547		(1,188		)	1,824
Total current liabilities	21		2,335		2,668		(1,188		)	3,836
Long-term debt	—		13,354		9,727		(13,872		)	9,209
Other long-term liabilities	20		292		2,054		—			2,366
Total long-term liabilities	20		13,646		11,781		(13,872		)	11,575
Commitments and contingencies
Redeemable noncontrolling interest	—		—		25		—			25
Total equity	21,383		21,338		33,500		(54,846		)	21,375
Total liabilities and equity	$	21,424	$	37,319	$	47,974	$	(69,906	)	$	36,811

	Year ended December 31, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Cash flows from operating activities	$	(52	)	$	503		$	1,334		$	—		$	1,785
Cash flows from investing activities
Capital expenditures	—			—			(1,020		)	—			(1,020		)
Investment in business combination, net of cash acquired	—			—			(1,246		)	—			(1,246		)
Proceeds from disposal of assets, net	—			—			177			—			177
Proceeds from disposal of discontinued operations, net	—			—			284			—			284
Investing activities with affiliates, net	(875		)	(325		)	(693		)	1,893			—
Other, net	—			(23		)	(68		)	—			(91		)
Net cash provided by (used in) investing activities	(875		)	(348		)	(2,566		)	1,893			(1,896		)
Cash flows from financing activities
Changes in short-term borrowings, net	—			(88		)	—			—			(88		)
Proceeds from debt	435			2,504			—			—			2,939
Repayments of debt	(429		)	(1,827		)	(153		)	—			(2,409		)
Proceeds from share issuance, net	1,211			—			—			—			1,211
Distribution of qualifying additional paid-in capital	(763		)	—			—			—			(763		)
Financing activities with affiliates, net	495			43			1,355			(1,893		)	—
Other, net	(57		)	(35		)	(64		)	—			(156		)
Net cash provided by (used in) financing activities	892			597			1,138			(1,893		)	734
Net increase (decrease) in cash and cash equivalents	(35		)	752			(94		)	—			623
Cash and cash equivalents at beginning of period	38			2,041			1,315			—			3,394
Cash and cash equivalents at end of period	$	3		$	2,793		$	1,221		$	—		$	4,017

	Year ended December 31, 2010
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Cash flows from operating activities	$	(33	)	$	(358	)	$	4,337		$	—		$	3,946
Cash flows from investing activities
Capital expenditures	(4		)	—			(1,387		)	—			(1,391		)
Proceeds from insurance recoveries for loss of drilling unit	—			—			560			—			560
Proceeds from disposal of assets, net	—			—			60			—			60
Investing activities with affiliates, net	310			1,357			(1,694		)	27			—
Other, net	—			(6		)	56			—			50
Net cash provided by (used in) investing activities	306			1,351			(2,405		)	27			(721		)
Cash flows from financing activities
Changes in short-term borrowings, net	—			(193		)	—			—			(193		)
Proceeds from debt	—			1,999			55			—			2,054
Repayments of debt	—			(2,245		)	(320		)	—			(2,565		)
Purchases of shares held in treasury	(240		)	—			—			—			(240		)
Financing activities with affiliates, net	—			1,384			(1,357		)	(27		)	—
Other, net	—			(14		)	(3		)	—			(17		)
Net cash provided by (used in) financing activities	(240		)	931			(1,625		)	(27		)	(961		)
Net increase in cash and cash equivalents	33			1,924			307			—			2,264
Cash and cash equivalents at beginning of period	5			117			1,008			—			1,130
Cash and cash equivalents at end of period	$	38		$	2,041		$	1,315		$	—		$	3,394

	Year ended December 31, 2009
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated
Cash flows from operating activities	$	(24	)	$	(429	)	$	6,051		$	—		$	5,598
Cash flows from investing activities
Capital expenditures	(1		)	—			(3,040		)	—			(3,041		)
Investing activities with affiliates, net	29			1,667			(2,068		)	372			—
Other, net	—			—			347			—			347
Net cash provided by (used in) investing activities	28			1,667			(4,761		)	372			(2,694		)
Cash flows from financing activities
Changes in short-term borrowings, net	—			(382		)	—			—			(382		)
Proceeds from debt	—			—			514			—			514
Repayments of debt	—			(2,865		)	(6		)	—			(2,871		)
Financing activities with affiliates, net	—			2,008			(1,636		)	(372		)	—
Other, net	1			4			(3		)	—			2
Net cash provided by (used in) financing activities	1			(1,235		)	(1,131		)	(372		)	(2,737		)
Net increase in cash and cash equivalents	5			3			159			—			167
Cash and cash equivalents at beginning of period	—			114			849			—			963
Cash and cash equivalents at end of period	$	5		$	117		$	1,008		$	—		$	1,130