Supplemental Financial Information

9 Months Ended

Sep. 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:

	September 30,			December 31,
	2011			2010
	(In thousands)
Trade receivables	$	621,012		$	633,224
Value added tax receivables		6,952			5,003
Unbilled third party claims		445			45
Related party receivables		2,443			538
Other		264			2,704
		631,116			641,514
Allowance for bad debts		(8,167	)		(31,908	)
Total	$	622,949		$	609,606

     In September 2011, we recorded a $5.7 million provision for bad debts to reserve a portion of the uncollected balance of receivables from one of our current customers in Egypt. During the three-month and nine-month periods ended September 30, 2011, we recovered $1.0 million and $11.1 million, respectively, in previously reserved bad debts. Recoveries during the first nine months of 2011 included $8.5 million in final payments from a previous customer in the North Sea and $2.6 million from another customer in Egypt for whom we no longer work. In addition, during 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 the North Sea customer.

     During the three-month and nine-month periods ended September 30, 2010, we recovered $2.0 million and $5.9 million, respectively, in previously reserved bad debts. Recoveries during the first nine months of 2010 included $1.0 million from a previous customer in the North Sea and $4.9 million from a previous customer in Egypt. No allowances were deemed necessary for the three-month and nine-month periods ended September 30, 2010.

     Prepaid expenses and other current assets consist of the following:

	September 30,		December 31,
	2011		2010
	(In thousands)
Rig spare parts and supplies	$	50,857	$	50,288
Deferred mobilization costs		60,005		76,868
Prepaid insurance		20,409		9,587
Deferred tax assets		9,557		9,557
Deposits		1,574		827
Prepaid taxes		5,515		20,347
FOREX contracts		236		4,326
Other		9,236		5,353
Total	$	157,389	$	177,153

     Accrued liabilities consist of the following:

	September 30,		December 31,
	2011		2010
	(In thousands)
Accrued capital project/upgrade costs	$	11,905	$	28,947
Payroll and benefits		69,741		76,041
Deferred revenue		47,149		69,825
Rig operating expenses		92,944		81,820
Interest payable		29,617		21,219
Personal injury and other claims		8,955		11,758
Accrued drillship construction installment		—		154,427
Other		18,898		25,153
Total	$	279,209	$	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 “Other assets” in our Consolidated Balance Sheets. See Notes 7 and 9.

Consolidated Statement of Cash Flows Information

     We paid interest on long-term debt totaling $54.0 million and $54.6 million for the nine-month periods ended September 30, 2011 and 2010, respectively. During the nine months ended September 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 $64.0 million and $362.5 million during the nine-month periods ended September 30, 2011 and 2010, respectively. We paid $121.9 million and $88.5 million in foreign income taxes, net of foreign tax refunds, during the nine months ended September 30, 2011 and 2010, respectively. We paid state income taxes, net of refunds, of $0.2 million and $1.0 million during the nine months ended September 30, 2011 and 2010, respectively.

     Capital expenditures for the nine months ended September 30, 2011 included $28.9 million that was accrued but unpaid at December 31, 2010. Capital expenditures for the nine months ended September 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 September 30, 2011 totaled $11.9 million. We have included this amount in “Accrued liabilities” in our Consolidated Balance Sheets at September 30, 2011.