Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt

Schedule of debt

	Principal amount				Carrying amount
	September 30,		December 31,		September 30,		December 31,
	2024		2023		2024		2023
7.25% Senior Notes due November 2025	$	—	$	354	$	—	$	352
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		234		234		226		221
7.50% Senior Notes due January 2026		—		569		—		567
11.50% Senior Guaranteed Notes due January 2027		—		687		—		938
6.875% Senior Secured Notes due February 2027		330		413		328		409
8.00% Senior Notes due February 2027		655		612		653		609
7.45% Notes due April 2027		52		52		52		52
8.00% Debentures due April 2027		22		22		22		22
4.50% Shipyard Loans due September 2027		359		420		336		384
8.375% Senior Secured Notes due February 2028		525		525		517		518
7.00% Notes due June 2028		261		261		263		264
8.00% Senior Secured Notes due September 2028		295		325		291		321
8.25% Senior Notes due May 2029		900		—		886		—
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		259		259		344		486
8.75% Senior Secured Notes due February 2030		999		1,116		980		1,094
7.50% Notes due April 2031		396		396		395		395
8.50% Senior Notes due May 2031		900		—		886		—
6.80% Senior Notes due March 2038		610		610		605		605
7.35% Senior Notes due December 2041		177		177		176		176
Total debt		6,974		7,032		6,960		7,413
Less debt due within one year
11.50% Senior Guaranteed Notes due January 2027		—		—		—		71
6.875% Senior Secured Notes due February 2027		83		83		81		81
4.50% Shipyard Loans due September 2027		120		90		107		75
8.375% Senior Secured Notes due February 2028		100		—		97		—
8.00% Senior Secured Notes due September 2028		60		30		59		30
8.75% Senior Secured Notes due February 2030		117		117		113		113
Total debt due within one year		480		320		457		370
Total long-term debt	$	6,494	$	6,712	$	6,503	$	7,043

Scheduled maturities of debt

	Total
Twelve months ending September 30,
2025	$	480
2026		767
2027		1,293
2028		664
2029		1,276
Thereafter		2,494
Total principal amount of debt		6,974
Total unamortized debt-related balances, net		(211)
Bifurcated compound exchange feature, at estimated fair value		197
Total carrying amount of debt	$	6,960

Schedule of debt retirements

	Nine months ended September 30,
	2024						2023
	Tendered		Redeemed		Total		Redeemed
5.375% Senior Secured Notes due May 2023	$	—	$	—	$	—	$	243
5.875% Senior Secured Notes due January 2024		—		—		—		311
7.75% Senior Secured Notes due October 2024		—		—		—		240
6.25% Senior Secured Notes due December 2024		—		—		—		250
6.125% Senior Secured Notes due August 2025		—		—		—		336
7.25% Senior Notes due November 2025		249		105		354		—
7.50% Senior Notes due January 2026		—		569		569		—
11.50% Senior Guaranteed Notes due January 2027		596		91		687		—
8.00% Senior Notes due February 2027		—		87		87		—
Aggregate principal amount of debt retired	$	845	$	852	$	1,697	$	1,380
Aggregate cash payment	$	886	$	862	$	1,748	$	1,402
Aggregate net gain, three-month period	$	—	$	21	$	21	$	—
Aggregate net gain (loss), nine-month period	$	144	$	17	$	161	$	(32)

Exchanged

Debt

Schedule of debt

Exchange terms—At September 30, 2024, the (a) current exchange rates, expressed as the number of Transocean Ltd. shares per $1,000 note, (b) implied exchange prices per Transocean Ltd. share and (c) aggregate shares, expressed in millions, issuable upon exchange of our exchangeable bonds were as follows:

			Implied
	Exchange		exchange		Shares
	rate		price		issuable
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		190.4762	$	5.25		45
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		290.6618	$	3.44		75

Schedule of interest expense

Effective interest rates and fair values—At September 30, 2024, the effective interest rates and estimated fair values of our exchangeable bonds were as follows (in millions, except effective interest rates):

	Effective		Fair
	interest rate		value
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		6.9%	$	261
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		18.3%	$	418

We estimated the fair values of the exchangeable debt instruments, including the exchange features, by employing a binomial lattice model using significant other observable inputs, representative of Level 2 fair value measurements, including the terms and credit spreads of our debt and the expected volatility of the market price for our shares.

Interest expense—We recognized interest expense for our exchangeable bonds as follows (in millions):

		Three months ended			Nine months ended
		September 30,			September 30,
	2024		2023		2024		2023
Contractual interest	$	6		6	$	16	$	19
Amortization		5		5		15		15
Bifurcated compound exchange feature		(74)		93		(153)		272
Total	$	(63)		104	$	(122)	$	306