2.2.0.7 false Derivative Instruments 10401 - Disclosure - Derivative Instruments true false false false 1 USD false false Unit12 Standard http://www.xbrl.org/2003/instance pure xbrli 0 Unit1 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Derivative Instruments 0 esv_DerivativesInstrumentsAbstract esv false na duration Derivatives Instruments false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Derivatives Instruments false 3 Derivative Instruments 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 <div> <div style="width: 800px;"> <div style="width: 800px;"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: Times New Roman; font-size: 11pt; font-weight: bold;" class="_mt">Note 4 - Derivative&nbsp;Instruments</font></div> <div style="text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font></font></div> <div style="text-indent: 0pt; display: block;"> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues are denominated in U.S. dollars, however, a portion of the revenues earned and expenses incurred by some of our subsidiaries are denominated in currencies other than the U.S. dollar ("foreign currencies"). These transactions are remeasured in U.S. dollars based on a combination of both current and historical exchange rates. We use foreign currency forward contracts ("derivatives") to reduce our exposure to various market risks, primarily foreign currency exchange rate risk. We maintain a foreign currency exchange rate 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, 2010 and December 31, 2009, 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 the counterparties of our derivatives 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.</font></font></font></div></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-align: justify; text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;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.&nbsp; As of June 30, 2010 and December 31, 2009, our condensed consolidated balance sheets included net foreign currency derivative assets of $<font class="_mt">3.0</font> million and&nbsp;$<font class="_mt">13.2</font> million, respectively. See "Note 9 - Fair Value Measurements" for additional information on the fair value measurement of our derivatives.</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-align: justify; text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;Derivatives recorded at fair value in our condensed consolidated balance sheets as of June 30, 2010 and December 31, 2009 consisted of the following (in millions):</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div align="left"> <table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="top" width="40%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td style="text-align: center;" valign="top" width="29%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp; &nbsp; &nbsp;</font><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp; <font style="font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative Assets&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font></font></font></td> <td style="text-align: center;" valign="top" width="30%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<font style="font-family: times new roman; font-size: 11pt; font-weight: bold; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Derivative Liabilities&nbsp;&nbsp; &nbsp;&nbsp;</font> </font></td></tr> <tr><td valign="top" width="40%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td style="text-align: right;" valign="top" width="11%"> <div style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">June 30,</font></div> <div style="text-align: right;"><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: times new roman; font-size: 11pt; font-weight: bold; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;2010&nbsp;&nbsp;&nbsp;&nbsp;</font></font></font></div></td> <td style="text-align: right;" valign="top" width="18%"> <div style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp; December 31,&nbsp; </font></div> <div style="text-align: right;"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;<font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;<font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp; <font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">2009</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font></font><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;&nbsp;</font></font></div></td> <td valign="top" width="14%" align="right"> <div> <div style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">June 30,</font></div> <div style="text-align: right;"><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;2010&nbsp;&nbsp;&nbsp;&nbsp;</font></font></font></div></div></td> <td valign="top" width="16%" align="right"> <div style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">December 31,</font></font></div> <div style="text-align: right;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">&nbsp;&nbsp;</font><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</font> </font></font></font></font></div></td></tr> <tr><td valign="top" width="40%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></td> <td valign="top" width="11%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="18%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td> <td valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr><td style="text-align: left;" valign="top" width="40%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives&nbsp;Designated as Hedging Instruments</font></td> <td valign="top" width="18%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr bgcolor="#cceeff"><td style="text-align: left;" valign="top" width="40%"> <div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Foreign currency forward contracts - current<font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font></font></font></font></div></td> <td valign="top" width="11%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;$3.5&nbsp; &nbsp;&nbsp;&nbsp;</font></td> <td valign="top" width="18%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$10.2&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></td> <td valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$3.1&nbsp; &nbsp;</font></td> <td valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$1.1&nbsp;&nbsp; &nbsp; &nbsp;</font></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 2px solid; text-align: left;" valign="top" width="40%"> <div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Foreign currency forward contracts - non-current<font style="font-family: times new roman; font-size: 11pt;" class="_mt" size="2"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(2)</font></font></font></font></font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="11%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">3.3&nbsp;&nbsp; &nbsp;&nbsp;</font></td> <td style="border-bottom: darkgray 2px solid; text-align: right;" valign="top" width="18%"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">3.8&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">-&nbsp;&nbsp;&nbsp;</font></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td></tr> <tr bgcolor="#cceeff"><td style="border-bottom: darkgray 2px solid;" valign="top" width="40%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="11%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">6.8&nbsp;&nbsp; &nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="18%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">14.0&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="14%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">3.1&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="16%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">1.1&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="white"><td valign="top" width="40%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="11%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="18%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr bgcolor="white"><td style="text-align: left;" valign="top" width="51%" colspan="2"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives Not Designated as Hedging Instruments</font></td> <td valign="top" width="18%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="14%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="16%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 2px solid; text-align: left;" valign="top" width="40%"> <div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Foreign currency forward contracts - current<font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font></font></font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="11%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="18%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">.3&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="14%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;.7&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="16%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">.0&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="#cceeff"><td style="border-bottom: darkgray 2px solid;" valign="top" width="40%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="11%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="18%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">.3&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="14%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;.7&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="top" width="16%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">.0&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 3px double; text-align: left;" valign="top" width="40%"> <div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Total</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="top" width="11%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$6.8 &nbsp; &nbsp;&nbsp; </font></div></td> <td style="border-bottom: darkgray 3px double;" valign="top" width="18%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$14.3&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="top" width="14%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$3.8&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="top" width="16%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$1.1&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></div></td></tr></table></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div> <table style="font-family: times new roman; font-size: 10pt;" class="MetaData" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top" width="3%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right">&nbsp;</div></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font> </font></td> <td style="text-align: justify;" class="MetaData" valign="bottom" width="95%"> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets.</font></div></td></tr> <tr><td valign="top" width="3%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="95%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr><td valign="top" width="3%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right">&nbsp;</div></td> <td style="text-align: left;" valign="top" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(2)</font></font></font></td> <td class="MetaData" valign="top" width="95%"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets, net, and other liabilities, respectively, on our condensed consolidated balance sheets.</font></div></td></tr></table></div> <div><br /></div> <div><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We utilize derivatives designated as hedging instruments to hedge forecasted foreign currency denominated transactions ("cash flow hedges"), primarily to reduce our exposure to foreign currency exchange rate risk associated with the portion of our remaining ENSCO 8500 Series&#174; construction obligations denominated in Singapore dollars and contract drilling expenses denominated in various other currencies. As of June 30, 2010, we had cash flow hedges outstanding to exchange an aggregate $<font class="_mt">230.3</font> million for various foreign currencies, including $<font class="_mt">161.5</font> million for Singapore dollars, $<font class="_mt">44.0</font> million for British pounds, $<font class="_mt">13.2</font> million for Australian dollars and $<font class="_mt">11.6</font> million for&nbsp;other currencies.</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-align: justify; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; margin-left: 36pt; font-size: 11pt;" class="_mt"> </font><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt">Gains and losses on derivatives designated as cash flow hedges&nbsp;included in our condensed consolidated statements of income for the three-month and six-month periods ended June 30, 2010 and 2009 were as follows (in millions):</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 11pt; text-decoration: underline;" class="_mt">Three Months Ended June 30, 2010 and 2009</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div> <table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom" width="36%" colspan="2"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives Designated</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;as Cash Flow Hedges&nbsp;&nbsp;&nbsp;</font></font></div></td> <td valign="bottom" width="18%" colspan="4"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">(Loss) Gain</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Recognized in</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Other Comprehensive</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Income ("OCI")</font></font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;(Effective Portion)&nbsp;&nbsp;&nbsp; </font></font></div></td> <td valign="bottom" width="21%" colspan="4"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;(Loss) Gain</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;Reclassified&nbsp;</font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">from</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Accumulated Other</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Comprehensive Income</font></font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">("AOCI") into Income</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp; <font style="font-family: times new roman; font-size: 11pt;" class="_mt">(Effective Portion)&nbsp;&nbsp;&nbsp;</font></font></font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold; text-decoration: underline;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="20%" colspan="5"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">(Loss) Gain</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Recognized in Income on</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives (Ineffective</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Portion and Amount</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Excluded from</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">Effectiveness Testing)</font><font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font></font></div></td></tr> <tr><td valign="bottom" width="34%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font></font></font></font></div></td> <td valign="bottom" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font></font></font></font></div></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="7%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font>&nbsp;&nbsp; </font></font></font></div></td> <td valign="bottom" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="9%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font>&nbsp;&nbsp; </font></font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font>&nbsp;&nbsp; </font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="10%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; </font></font></font></font></div></td></tr> <tr><td valign="middle" width="34%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="7%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="6%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="7%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="9%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="10%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td></tr> <tr bgcolor="#cceeff"><td valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Interest rate lock contracts<font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(2)</font></font></font></div></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp; &nbsp;&nbsp;-&nbsp; </font></div></td> <td valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;&nbsp;&nbsp; -</font></div></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(.2)</font></div></td> <td valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp; (.1)&nbsp;&nbsp;&nbsp;</font></div></td> <td valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td> <td valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$ -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 2px solid;" valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Foreign currency forward contracts<font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(3)</font></font></font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;(1.6)</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="3%" align="left">&nbsp;</td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">14.2</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;.4&nbsp; </font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;(5.0)&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;(.2)&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="#cceeff"><td style="border-bottom: darkgray 3px double;" valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Total</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(1.6)</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$14.2</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;.2&nbsp; </font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(5.1)&nbsp;&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(.2) &nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr></table></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"> </font>&nbsp;</div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: Times New Roman; font-size: 11pt; text-decoration: underline;" class="_mt">Six Months Ended June 30, 2010 and 2009</font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div align="left"> <table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="100%"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom" width="36%" colspan="2"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives Designated</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;as Cash Flow Hedges&nbsp;&nbsp;&nbsp;</font></font></div></td> <td valign="bottom" width="18%" colspan="4"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">L<font style="font-family: times new roman; font-size: 11pt;" class="_mt">oss</font> </font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Recognized</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">in&nbsp;</font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">OCI</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;(Effective Portion)&nbsp;&nbsp;&nbsp;</font></font></div></td> <td valign="bottom" width="21%" colspan="4"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;(Loss) Gain</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">&nbsp;Reclassified&nbsp;</font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">from</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">AOCI into Income</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;<font style="text-decoration: underline;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;<font style="font-family: times new roman; font-size: 11pt;" class="_mt">(Effective Portion)&nbsp;&nbsp;&nbsp;&nbsp;</font></font></font></font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="20%" colspan="5"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Loss </font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Recognized</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">in Income on</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Derivatives (Ineffective</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Portion and Amount</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt">Excluded from</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="center"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; text-decoration: underline;" class="_mt">Effectiveness Testing)</font><font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font></font></div></td></tr> <tr><td valign="bottom" width="34%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp; &nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font></font></font></font></div></td> <td valign="bottom" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font></font></font></font></div></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="7%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font>&nbsp; &nbsp; </font></font></font></div></td> <td valign="bottom" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="9%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;<font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font>&nbsp;&nbsp;</font></font></font><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp; </font></font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2010</font>&nbsp;&nbsp; </font></font></div></td> <td valign="bottom" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="text-align: right;" valign="bottom" width="10%"> <div style="text-align: right; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: times new roman; font-size: 11pt; font-weight: bold;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;<font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="text-decoration: underline;" class="_mt">2009</font>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; </font></font></font></font></div></td></tr> <tr><td valign="middle" width="34%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="7%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="6%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="2%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="7%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="3%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="9%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="4%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="middle" width="10%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td></tr> <tr bgcolor="#cceeff"><td valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Interest rate lock contracts<font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(2)</font></font></font></div></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp; &nbsp; -&nbsp; </font></div></td> <td valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;&nbsp;&nbsp; -&nbsp; </font></div></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(.3)</font></div></td> <td valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp; &nbsp; (.3)&nbsp;&nbsp;</font></div></td> <td valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td> <td valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 2px solid;" valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Foreign currency forward contracts<font style="display: inline; font-size: 70%; vertical-align: text-top;" class="_mt">(3)</font></font></font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;(3.0)</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">(1.2)</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp; </font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;(14.8)&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="1%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;(.2)&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">(2.4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr> <tr bgcolor="#cceeff"><td style="border-bottom: darkgray 3px double;" valign="bottom" width="34%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Total</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(3.0)</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="6%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(1.2)</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="7%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$1.5&nbsp; </font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="3%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="9%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(15.1)&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="1%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(.2)&nbsp;&nbsp;</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="10%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$(2.4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div></td></tr></table></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div> <table style="font-family: times new roman; font-size: 10pt;" class="MetaData" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top" width="2%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right">&nbsp;</div></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(1)</font></font></td> <td class="MetaData" valign="top" width="96%"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">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.</font></div></td></tr> <tr><td valign="top" width="2%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="96%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr><td valign="top" width="2%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right">&nbsp;</div></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(2)</font></font></font></td> <td class="MetaData" valign="top" width="96%"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Losses on derivatives reclassified from AOCI into income (effective portion) were included in other income, net, in our&nbsp;condensed consolidated statements of income.</font></div></td></tr> <tr><td valign="top" width="2%" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td> <td valign="top" width="96%"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr> <tr><td valign="top" width="2%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right">&nbsp;</div></td> <td valign="top" width="2%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-size: 70%; vertical-align: text-top;" class="_mt">(3)</font></font></font></td> <td class="MetaData" valign="top" width="96%"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Gains and losses on derivatives reclassified from&nbsp;AOCI into income (effective portion) were included in contract drilling expense in&nbsp;our condensed consolidated statements of income.</font></div></td></tr></table></div> <div style="text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;We have net assets and liabilities denominated in numerous foreign currencies and use various methods to manage our exposure to foreign currency exchange rate 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.&nbsp; 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, 2010, we had derivatives not designated as hedging instruments outstanding to exchange an aggregate $<font class="_mt">26.7</font> million for various foreign currencies, including&nbsp;$<font class="_mt">15.7</font> million for Australian dollars, $<font class="_mt">4.5</font> million for British pounds and $<font class="_mt">6.5</font> million for&nbsp;other currencies.</font></font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-align: justify; text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;Net losses of $<font class="_mt">1.7</font> million and net gains of&nbsp;$<font class="_mt">3.2</font> million associated with our derivatives not designated as hedging instruments&nbsp;were included in other income, net, in our condensed consolidated statements of income for the three-month periods ended June 30, 2010 and 2009, respectively. Net losses of $<font class="_mt">1.1</font> million and net gains of $<font class="_mt">2.2</font> million associated with our derivatives not designated as hedging instruments&nbsp;were included in other income, net, in our condensed consolidated statements of income for the six-month periods ended June 30, 2010 and 2009, respectively.</font></font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div style="text-align: justify; text-indent: 0pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; font-size: 11pt;" class="_mt"><font style="font-family: Times New Roman; letter-spacing: 5pt; font-size: 11pt;" class="_mt">&nbsp;&nbsp;&nbsp;</font>&nbsp;As of June 30, 2010, the estimated amount of net&nbsp;losses associated with derivative instruments, net of tax, that will be reclassified to earnings during the next twelve months was as follows (in millions):</font></font></font></div> <div style="text-indent: 0pt; display: block;">&nbsp;</div> <div align="center"> <table style="font-family: times new roman; font-size: 10pt;" cellspacing="0" cellpadding="0" width="75%"> <tr bgcolor="#cceeff"><td valign="bottom" width="89%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Net unrealized losses to be reclassified to contract drilling expense</font></div></td> <td valign="bottom" width="5%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$1.5</font></div></td> <td valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td></tr> <tr bgcolor="white"><td style="border-bottom: darkgray 2px solid;" valign="bottom" width="89%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">Net realized losses to be reclassified to other income, net</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="5%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">.4</font></div></td> <td style="border-bottom: darkgray 2px solid;" valign="bottom" width="1%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr bgcolor="#cceeff"><td style="border-bottom: darkgray 3px double;" valign="bottom" width="89%" align="left"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt"><font style="font-family: times new roman; font-size: 11pt;" class="_mt">Net&nbsp;losses to be reclassified to earnings</font></font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="5%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp; </font></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="4%" align="right"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="right"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">$1.9</font></div></td> <td style="border-bottom: darkgray 3px double;" valign="bottom" width="1%" align="left"><font style="display: inline; font-family: times new roman; font-size: 11pt;" class="_mt">&nbsp;</font></td></tr></table></div></div></div> </div> Note 4 - Derivative&nbsp;Instruments &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Our functional currency is the U.S. dollar. As is customary in the oil and gas false false false us-types:textBlockItemType textblock This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 false 1 2 false UnKnown UnKnown UnKnown false true