1.0.0.3 false Derivative Financial Instruments false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 Unit1 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 Derivative Financial Instruments [Abstract] 0 esv_DerivativeFinancialInstruments esv false na duration string Derivative Financial Instruments [Abstract] false false false false false true false false false 1 false false 0 0 false false Derivative Financial Instruments [Abstract] false 3 Derivative Financial Instruments 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> <h2> <a name="_AUC62a1bc0029154c04a9f2c842360fa993">Note 4 - Derivative Financial Instruments</a> </h2>        On January 1, 2009, we adopted SFAS No. 161, "Disclosures about Derivative and Hedging Activities" ("SFAS 161"). This standard amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133"), to change the disclosure requirements for derivative instruments and hedging activities. SFAS 161 requires enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under SFAS 133 and its related interpretations and (c) how derivative instruments and related hedged items affect an entity's financial position, operating results and cash flows.        We use derivative financial instruments ("derivatives") to reduce our exposure to various market risks, primarily foreign currency risk. We maintain a foreign currency risk management strategy that utilizes derivatives to reduce our exposure to unanticipated fluctuations in earnings and cash flows caused by changes in foreign currency exchange rates. Although no interest rate related derivatives were outstanding as of June 30, 2009 and December 31, 2008, we occasionally employ an interest rate risk management strategy that utilizes derivatives to minimize or eliminate unanticipated fluctuations in earnings and cash flows arising from changes in, and volatility of, interest rates. We minimize our credit risk relating to our derivative counterparties by transacting with multiple, high-quality financial institutions, thereby limiting exposure to individual counterparties, and by monitoring the financial condition of our counterparties. We do not enter into derivatives for trading or other speculative purposes.        All derivatives were recorded on our condensed consolidated balance sheets at fair value. Accounting for the gains and losses resulting from changes in the fair value of derivatives depends on the use of the derivative and whether it qualifies for hedge accounting in accordance with SFAS 133. As of June 30, 2009 and December 31, 2008, our condensed consolidated balance sheets included net foreign currency derivative assets of $1.6 million and net foreign currency derivative liabilities of $20.3 million, respectively. See "Note 7 - Fair Value Measurements" for additional information on the fair value measurement of our derivatives.        Derivatives recorded at fair value in our condensed consolidated balance sheets as of June 30, 2009 and December 31, 2008 consisted of the following (in millions):   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="710" style= "width:532.5pt;mso-cellspacing:0in;mso-yfti-tbllook:1184;mso-padding-alt: 0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="8" valign="bottom" style= "padding:0in 0in 0in 0in">           Derivative Assets         </td> <td colspan="9" valign="bottom" style= "padding:0in 0in 0in 0in">           Derivative Liabilities       </td> </tr> <tr style="mso-yfti-irow:1"> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in"> June 30, </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in"> December 31, </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in"> June 30, </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="3" valign="bottom" style= "padding:0in 0in 0in 0in"> December 31, </td> </tr> <tr style="mso-yfti-irow:2"> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">     2009     </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">       2008       </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">     2009     </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="3" valign="bottom" style= "padding:0in 0in 0in 0in">       2008       </td> </tr> <tr style="mso-yfti-irow:3"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:4"> <td width="46%" valign="bottom" style= "width:46.0%;background:#CCEEFF; padding:0in 0in 0in 0in"> Foreign currency forward contracts - current(1) </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="8%" valign="bottom" style= "width:8.0%;background:#CCEEFF;padding: 0in 0in 0in 0in"> $8.2        </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="11%" valign="bottom" style= "width:11.0%;background:#CCEEFF; padding:0in 0in 0in 0in"> $  .3          </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="10%" valign="bottom" style= "width:10.0%;background:#CCEEFF; padding:0in 0in 0in 0in"> $6.7          </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> <td width="10%" valign="bottom" style= "width:10.0%;background:#CCEEFF; padding:0in 0in 0in 0in"> $25.8       </td> <td width="1%" valign="bottom" style= "width:1.0%;background:#CCEEFF;padding: 0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="bottom" style="padding:0in 0in 0in 0in"> Foreign currency forward contracts - non-current(2) </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> 1.1        </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> 5.1          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> 1.3          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> .0       </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td colspan="21" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:7"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Total derivatives designated as hedging instruments </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> 9.3        </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> 5.4          </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> 8.0          </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> 25.8       </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:8"> <td colspan="21" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:9"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:10"> <td valign="bottom" style="padding:0in 0in 0in 0in"> Foreign currency forward contracts - current(1) </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   .3        </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   .1          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   .0          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">     .0       </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:11"> <td colspan="21" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:12"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Total derivatives not designated as hedging instruments </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   .3        </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   .1          </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   .0          </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">     .0       </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:13"> <td colspan="21" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:14"> <td valign="bottom" style="padding:0in 0in 0in 0in"> Total derivatives </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> $9.6        </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> $5.5          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> $8.0          </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"> $25.8       </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:15"> <td colspan="21" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="3" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "675" style= "width:506.25pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.0%;padding:.75pt .75pt .75pt .75pt"> (1) </td> <td width="3%" valign="top" style= "width:3.0%;padding:.75pt .75pt .75pt .75pt">   </td> <td width="92%" valign="top" style= "width:92.0%;padding:.75pt .75pt .75pt .75pt"> Derivative assets and liabilities which have maturity dates equal to or less than twelve months from the respective balance sheet dates were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets. </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "675" style= "width:506.25pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.0%;padding:.75pt .75pt .75pt .75pt"> (2) </td> <td width="3%" valign="top" style= "width:3.0%;padding:.75pt .75pt .75pt .75pt">   </td> <td width="92%" valign="top" style= "width:92.0%;padding:.75pt .75pt .75pt .75pt"> Derivative assets and liabilities which have maturity dates greater than twelve months from the respective balance sheet dates were included in other assets, net, and other liabilities, respectively, on our condensed consolidated balance sheets. </td> </tr> </table>          We utilize derivatives to hedge forecasted foreign currency denominated transactions ("cash flow hedges"), primarily to reduce our exposure to foreign currency risk associated with the portion of our remaining ENSCO 8500 Series® construction obligations denominated in Singapore dollars and contract drilling expenses denominated in various other currencies. As of June 30, 2009, we had cash flow hedges outstanding to exchange an aggregate $419.3 million for foreign currencies, including $270.2 million for Singapore dollars, $74.8 million for British pounds, $37.9 million for Australian dollars and $36.4 million for various other foreign currencies.        Gains and losses on derivatives designated as cash flow hedges in accordance with SFAS 133 included in our condensed consolidated statements of income for the three-month and six-month periods ended June 30, 2009 and 2008 were as follows (in millions): Three Months Ended June 30, 2009 and 2008   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="715" style= "width:536.25pt;mso-cellspacing:0in;mso-yfti-tbllook:1184;mso-padding-alt: 0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in"> Derivatives Designated        as Cash Flow Hedges        </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain Recognized in Other Comprehensive Income ("OCI") on Derivatives  (Effective Portion)  </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain or (Loss) Reclassified from Accumulated OCI into Income  (Effective Portion)  </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(1) </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008    </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">     2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:2"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:3"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Foreign currency forward contracts(2) </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $14.2      </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $2.2     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(5.0)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $2.6    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $4.1    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(.3)     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="23%" valign="bottom" style= "width:23.0%;padding:0in 0in 0in 0in"> Interest rate swap contracts(3) </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.0%;padding:0in 0in 0in 0in">     --      </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   --     </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.0%;padding:0in 0in 0in 0in">   (.1)  </td> <td width="4%" valign="bottom" style= "width:4.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">  (.2)   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">    --    </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   --      </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td colspan="18" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Total </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $14.2      </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $2.2     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(5.1)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $2.4    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $4.1    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(.3)     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:7"> <td colspan="18" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="3" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "640" style= "width:480.0pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td style="padding:.75pt .75pt .75pt .75pt">   </td> </tr> <tr style="mso-yfti-irow:1;mso-yfti-lastrow:yes"> <td style="padding:.75pt .75pt .75pt .75pt"> Six Months Ended June 30, 2009 and 2008 </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="715" style= "width:536.25pt;mso-cellspacing:0in;mso-yfti-tbllook:1184;mso-padding-alt: 0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in"> Derivatives Designated        as Cash Flow Hedges        </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain or (Loss) Recognized in OCI on Derivatives  (Effective Portion)  </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain or (Loss) Reclassified from Accumulated OCI into Income  (Effective Portion)  </td> <td colspan="2" valign="bottom" style= "padding:0in 0in 0in 0in">   </td> <td colspan="4" valign="bottom" style= "padding:0in 0in 0in 0in"> Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(1) </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">     2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008    </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">     2009   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   </td> <td valign="bottom" style="padding:0in 0in 0in 0in">   2008   </td> <td valign="bottom" style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:2"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> <tr style="mso-yfti-irow:3"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Foreign currency forward contracts(2) </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(1.2)    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $5.4     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(14.8)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $4.6    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(2.4)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $.1      </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="23%" valign="bottom" style= "width:23.0%;padding:0in 0in 0in 0in"> Interest rate swap contracts(3) </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.0%;padding:0in 0in 0in 0in">    --      </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   --     </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="3%" valign="bottom" style= "width:3.0%;padding:0in 0in 0in 0in">   </td> <td width="6%" valign="bottom" style= "width:6.0%;padding:0in 0in 0in 0in">     (.3)  </td> <td width="4%" valign="bottom" style= "width:4.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">  (.4)   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="2%" valign="bottom" style= "width:2.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">    --    </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">  --      </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td colspan="18" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Total </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(1.2)    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $5.4     </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(15.1)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $4.2    </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $(2.4)  </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $ .1      </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:7"> <td colspan="18" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="3" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td style="padding:0in 0in 0in 0in">   </td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> <td style="padding:0in 0in 0in 0in"></td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "675" style= "width:506.25pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.0%;padding:.75pt .75pt .75pt .75pt"> (1) </td> <td width="1%" valign="top" style= "width:1.0%;padding:.75pt .75pt .75pt .75pt">   </td> <td width="94%" valign="top" style= "width:94.0%;padding:.75pt .75pt .75pt .75pt"> Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other income, net, in our condensed consolidated statements of income. </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "675" style= "width:506.25pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.0%;padding:.75pt .75pt .75pt .75pt"> (2) </td> <td width="1%" valign="top" style= "width:1.0%;padding:.75pt .75pt .75pt .75pt">   </td> <td width="94%" valign="top" style= "width:94.0%;padding:.75pt .75pt .75pt .75pt"> Gains and losses on derivatives reclassified from AOCI into income (effective portion) were included in contract drilling expense in our condensed consolidated statements of income. </td> </tr> </table>   <table class="MsoNormalTable" border="0" cellpadding="0" width= "675" style= "width:506.25pt; mso-cellspacing:1.5pt;mso-yfti-tbllook:1184"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes"> <td width="5%" valign="top" style= "width:5.0%;padding:.75pt .75pt .75pt .75pt"> (3) </td> <td width="1%" valign="top" style= "width:1.0%;padding:.75pt .75pt .75pt .75pt">   </td> <td width="94%" valign="top" style= "width:94.0%;padding:.75pt .75pt .75pt .75pt"> Losses on derivatives reclassified from accumulated other comprehensive income ("AOCI") into income (effective portion) were included in other income, net, in our condensed consolidated statements of income. </td> </tr> </table>          We have net assets and liabilities denominated in numerous foreign currencies and use various methods to manage our exposure to foreign currency risk. We predominantly structure our drilling contracts in U.S. dollars, which significantly reduces the portion of our cash flows and assets denominated in foreign currencies. We occasionally enter into derivatives that hedge the fair value of recognized foreign currency denominated assets or liabilities but do not designate such derivatives as hedging instruments, or the derivatives otherwise do not qualify for hedge accounting under SFAS 133. In these situations, a natural hedging relationship generally exists whereby changes in the fair value of the derivatives offset changes in the fair value of the underlying hedged items. As of June 30, 2009, we had derivatives not designated as hedging instruments outstanding to exchange an aggregate $43.5 million for foreign currencies, including $13.6 million for Danish kroner, $11.8 million for Australian dollars, $8.8 million for British pounds and $9.3 million for various other currencies.        Net gains of $3.2 million and $1.5 million associated with our derivatives not designated as hedging instruments under SFAS 133 were included in other income, net, in our condensed consolidated statements of income for the quarters ended June 30, 2009 and 2008, respectively. Net gains of $2.2 million and $4.7 million associated with our derivatives not designated as hedging instruments under SFAS 133 were included in other income, net, in our condensed consolidated statements of income for the six-month periods ended June 30, 2009 and 2008, respectively.        If we were to incur a hypothetical 10% adverse change in foreign currency exchange rates, net unrealized losses associated with our foreign currency denominated assets and liabilities and related derivatives as of June 30, 2009 would approximate $39.6 million, including $26.8 million related to our Singapore dollar exposures. All of our outstanding derivatives mature during the next three years.        As of June 30, 2009, the estimated amount of net unrealized gains associated with derivatives, net of tax, that will be reclassified to earnings during the next twelve months was as follows (in millions):   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="500" style= "width:375.0pt;mso-cellspacing:0in;mso-yfti-tbllook:1184;mso-padding-alt: 0in 0in 0in 0in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> Net unrealized gains to be reclassified to contract drilling expense </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $ .9 </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="88%" valign="bottom" style= "width:88.0%;padding:0in 0in 0in 0in"> Net unrealized losses to be reclassified to other income, net </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in">   </td> <td width="4%" valign="bottom" style= "width:4.0%;padding:0in 0in 0in 0in">   </td> <td width="5%" valign="bottom" style= "width:5.0%;padding:0in 0in 0in 0in">   </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in"> (.6 </td> <td width="1%" valign="bottom" style= "width:1.0%;padding:0in 0in 0in 0in"> ) </td> </tr> <tr style="mso-yfti-irow:2"> <td colspan="6" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="1" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> <tr style="mso-yfti-irow:3"> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">           Net unrealized gains to be reclassified to earnings </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in"> $ .3 </td> <td valign="bottom" style= "background:#CCEEFF;padding:0in 0in 0in 0in">   </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td colspan="6" style="padding:0in 0in 0in 0in"> <div class="MsoNormal" align="center" style= "text-align:center"> <hr size="3" width="100%" noshade="noshade" style= "color:#ACA899" align="center" /> </div> </td> </tr> </table> <style> /*<![CDATA[*/ v:* {behavior:url(#default#VML);} o:* {behavior:url(#default#VML);} w:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);}  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} /*]]>*/ </style> </div> Note 4 - Derivative Financial Instruments        On January 1, 2009, we adopted SFAS No. 161, false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true