Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Components of the provision (benefit) for income taxes

	Years ended December 31,
	2011			2010			2009
Current tax expense	$	426		$	450		$	738
Deferred tax expense (benefit)	(31		)	(114		)	(15		)
Income tax expense	$	395		$	336		$	723

Reconciliation of the differences between income tax expense computed at the Swiss holding company statutory rate and the reported provision for income taxes

	Years ended December 31,
	2011			2010			2009
Income tax expense at the Swiss federal statutory rate	$	(425	)	$	101		$	307
Taxes on earnings subject to rates greater than the Swiss federal statutory rate	285			107			288
Taxes on impairment loss subject to rates less than the Swiss federal statutory rate	409			79			—
Taxes on asset sales subject to rates less than the Swiss federal statutory rate	(16		)	—			—
Taxes on litigation matters subject to rates less than the Swiss federal statutory rate	78			—			—
Changes in unrecognized tax benefits, net	62			71			135
Change in valuation allowance	19			4			49
Benefit from foreign tax credits	(28		)	(23		)	(49		)
Taxes on asset acquisition costs at rates lower than the Swiss federal statutory rate	8			—			—
Other, net	3			(3		)	(7		)
Income tax expense	$	395		$	336		$	723

Significant components of deferred tax assets and liabilities

	December 31,
	2011			2010
Deferred tax assets
Drilling contract intangibles	$	2		$	6
Net operating loss carryforwards	341			184
Tax credit carryforwards	45			29
Accrued payroll expenses not currently deductible	77			72
Deferred income	67			84
Valuation allowance	(183		)	(164		)
Other	81			61
Total deferred tax assets	430			272
Deferred tax liabilities
Depreciation and amortization	(749		)	(680		)
Drilling management services intangibles	(25		)	(26		)
Other	(37		)	(26		)
Total deferred tax liabilities	(811		)	(732		)
Net deferred tax liabilities	$	(381	)	$	(460	)

Valuation allowance for non-current deferred tax assets

	December 31,
	2011		2010
Valuation allowance for non-current deferred tax assets	$	183	$	164

Reconciliation of unrecognized tax benefits, excluding interest and penalties

	Years ended December 31,
	2011			2010			2009
Balance, beginning of period	$	485		$	460		$	372
Additions for current year tax positions	45			46			64
Additions for prior year tax positions	23			9			62
Reductions for prior year tax positions	—			(11		)	(22		)
Settlements	(42		)	(17		)	(3		)
Reductions related to statute of limitation expirations	(2		)	(2		)	(13		)
Balance, end of period	$	509		$	485		$	460

Schedule of unrecognized tax benefits, including related interest and penalties

	December 31,
	2011		2010
Unrecognized tax benefits, excluding interest and penalties	$	509	$	485
Interest and penalties	272		235
Unrecognized tax benefits, including interest and penalties	$	781	$	720