Drilling and Other Property and Equipment

9 Months Ended

Sep. 30, 2011

Drilling and Other Property and Equipment [Abstract]

Drilling and Other Property and Equipment

7. Drilling and Other Property and Equipment

Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows:


	September 30,			December 31,
	2011			2010
	(In thousands)
Drilling rigs and equipment	$	7,298,695		$	7,163,196
Construction work-in-progress		483,046			—
Land and buildings		60,449			56,536
Office equipment and other		47,622			44,689

Cost		7,889,812			7,264,421
Less: accumulated depreciation		(3,284,064	)		(2,980,629	)

Drilling and other property and equipment, net	$	4,605,748		$	4,283,792

In August 2011, we transferred $478.3 million in deposits related to the construction of three drillships, of which $154.4 million had been accrued at December 31, 2010, from “Other assets” in our Consolidated Balance Sheets into construction work-in-progress and commenced capitalization of interest on qualifying expenditures. See Notes 1 and 2.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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