2.2.0.7 false Commitments and Contingencies 11201 - Disclosure - Commitments and Contingencies true false false false 1 USD false false Unit12 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Unit1 Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Commitments and Contingencies 0 glbl_CommitmentsAndContingenciesAbstract glbl false na duration Commitments and Contingencies [Abstract] 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 Commitments and Contingencies [Abstract] false 3 Commitments and Contingencies 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="1%" nowrap="nowrap" align="left"><b>12.</b></td> <td width="1%"> </td> <td><b><i>Commitments and Contingencies</i></b></td></tr></table></div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td><b>Commitments</b></td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td><b><i>Construction and Purchases in Progress </i></b><b>— </b>The estimated cost to complete capital expenditure projects in progress at September 30, 2010 was approximately $198.2 million, of which $90.6 million is obligated through contractual commitments. The total estimated cost primarily represents expenditures for construction of the <b><i>Global 1200 </i></b>and <b><i>Global 1201</i></b>, our new generation derrick/pipelay vessels. This amount includes aggregate commitments of 44.0 million Singapore dollars (or $33.4 million as of September 30, 2010) and 4.5 million Euros or ($6.2 million as of September 30, 2010). We have entered into forward contracts to purchase 7.5 million Singapore dollars to hedge certain purchase commitments related to the construction of the <b><i>Global 1201 </i></b>and 2.5 million Singapore dollars to hedge operating expenses related to our Asia Pacific/Middle East segment.</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td><b><i>Off Balance Sheet Arrangements — </i></b>In the normal course of our business activities, and pursuant to agreements or upon obtaining such agreements to perform construction services, we provide guarantees, bonds, and letters of credit to customers, vendors, and other parties. At September 30, 2010, the aggregate amount of these outstanding bonds was $33.4 million, which are scheduled to expire between October 2010 and September 2011, and the aggregate amount of outstanding letters of credit was $44.6 million, which are due to expire between October 2010 and March 2014.</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td><b>Contingencies</b></td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td>During the fourth quarter of 2007, we received a payroll tax assessment for the years 2005 through 2007 from the Nigerian Revenue Department valued at $18.5 million based on the exchange rate of the Nigerian naira as of September 30, 2010. The assessment alleges that certain expatriate employees, working on projects in Nigeria, were subject to personal income taxes, which were not paid to the government. We filed a formal objection to the assessment on November 12, 2007. We do not believe these employees are subject to the personal income tax assessed; however, based on past practices of the Nigerian Revenue Department, we believe this matter will ultimately have to be resolved by litigation. We do not expect the ultimate resolution to have a material adverse effect on our future operating results.</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td>During 2008, we received an additional assessment from the Nigerian Revenue Department valued at $37.9 million, based on the exchange rate of the Nigerian naira as of September 30, 2010, for tax withholding related to third party service providers. The assessment alleges that taxes were not withheld from third party service providers for the years 2002 through 2006 and remitted to the Nigerian government. We have filed an objection to the assessment. We do not expect the ultimate resolution to have a material adverse effect on our future operating results.</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td>During the third quarter of 2009, we received a tax assessment from the Mexican Revenue Department in the amount of $5.9 million related to the 2003 tax year. The assessment alleges that chartered vessels should be treated as equipment leases and subject to tax at a rate of 10%. We have engaged outside counsel to assist us in this matter and have filed an appeal in the Mexican court system. We await disposition of that appeal. We do not expect the ultimate resolution to have a material adverse effect on our future operating results; however, if the Mexican Revenue Department prevails in its assessment, we could be exposed to similar liabilities for each of the tax years beginning with 2004 through the current year.</td></tr></table></div> <div style="margin-top: 6pt;"> </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="2%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td>We have one unresolved issue related to an Algerian tax assessment received by us on February 21, 2007. The remaining amount in dispute is approximately $10.4 million of alleged value added tax for the years 2004 and 2005. We are contractually indemnified by our client for the full amount of the assessment that remains in dispute. We continue to engage outside tax counsel to assist us in resolving the tax assessment.</td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="2%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td><b>Litigation</b></td></tr> <tr><td style="font-size: 6pt;"> </td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="2%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td>We are involved in various legal proceedings and potential claims that arise in the ordinary course of business, primarily involving claims for personal injury under the General Maritime Laws of the United States and Jones Act as a result of alleged negligence. We believe that the outcome of all such proceedings, even if determined adversely, would not have a material adverse effect on our business or financial condition.</td></tr></table></div></div> </div> 12.   Commitments and Contingencies     Commitments       Construction and Purchases in Progress — The estimated cost to false false false us-types:textBlockItemType textblock Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 false 1 2 false UnKnown UnKnown UnKnown false true