Supplemental Financial Information

6 Months Ended

Jun. 30, 2011

Supplemental Financial Information [Abstract]

Supplemental Financial Information

2. Supplemental Financial Information

Consolidated Balance Sheet Information

     Accounts receivable, net of allowance for bad debts, consists of the following:

	June 30,			December 31,
	2011			2010
	(In thousands)
Trade receivables	$	583,595		$	633,224
Value added tax receivables		7,442			5,003
Unbilled third party claims		106			45
Related party receivables		3,320			538
Other		1,123			2,704
		595,586			641,514
Allowance for bad debts		(3,429	)		(31,908	)
Total	$	592,157		$	609,606

     During the three-month and six-month periods ended June 30, 2011, we recovered $1.7 million and $10.1 million, respectively, associated with reserves for bad debts recorded in previous years. During the three-month and six-month periods ended June 30, 2010, we recovered $2.8 million and $3.9 million, respectively, associated with the reserves for bad debts recorded in previous years. No additional allowances were deemed necessary for each of the three-month and six-month periods ended June 30, 2011 and 2010.

     In addition, during the six months ended June 30, 2011, we offset $18.4 million in previously reserved trade receivables against the allowance for bad debts as we had exhausted all methods of recovery against this customer.

     Prepaid expenses and other current assets consist of the following:

	June 30,		December 31,
	2011		2010
	(In thousands)
Rig spare parts and supplies	$	51,175	$	50,288
Deferred mobilization costs		60,396		76,868
Prepaid insurance		27,743		9,587
Deferred tax assets		9,557		9,557
Deposits		724		827
Prepaid taxes		32,865		20,347
FOREX contracts		8,410		4,326
Other		5,819		5,353
Total	$	196,689	$	177,153

     Accrued liabilities consist of the following:

	June 30,		December 31,
	2011		2010
	(In thousands)
Accrued capital project/upgrade costs	$	6,848	$	28,947
Payroll and benefits		87,522		76,041
Deferred revenue		55,933		69,825
Rig operating expenses		71,901		81,820
Interest payable		21,219		21,219
Personal injury and other claims		8,563		11,758
Accrued drillship construction installment		—		154,427
Other		26,911		25,153
Total	$	278,897	$	469,190

     At December 31, 2010, we had accrued the first installment payable under a turnkey construction agreement with Hyundai Heavy Industries Co., Ltd., or Hyundai, of $154.4 million and recorded the related noncurrent asset in an equal amount in “Construction deposits” in our Consolidated Balance Sheets. See Note 9.

Consolidated Statement of Cash Flows Information

     We paid interest on long-term debt totaling $41.5 million and $42.0 million for the six-month periods ended June 30, 2011 and 2010, respectively. During the six months ended June 30, 2010, we paid $0.9 million in interest on assessments from the Internal Revenue Service.

     We made estimated U.S. federal income tax payments of $49.0 million and $254.5 million during the six-month periods ended June 30, 2011 and 2010, respectively. We paid $96.5 million and $76.2 million in foreign income taxes, net of foreign tax refunds, during the six months ended June 30, 2011 and 2010, respectively. We paid state income taxes, net of refunds, of $0.2 million and $0.1 million during the six months ended June 30, 2011 and 2010, respectively.

     Capital expenditures for the six months ended June 30, 2011 included $28.9 million that was accrued but unpaid at December 31, 2010. Capital expenditures for the six months ended June 30, 2010 included $64.9 million that was accrued but unpaid at December 31, 2009. Capital expenditures that were accrued but not paid as of June 30, 2011 totaled $6.8 million. We have included this amount in “Accrued liabilities” in our Consolidated Balance Sheets at June 30, 2011.