Supplemental Financial Information

12 Months Ended

Dec. 31, 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:

	December 31,
	2011			2010
	(In thousands)
Trade receivables	$	555,451		$	633,224
Value added tax receivables		11,615			5,003
Interest receivable		2,540			805
Related party receivables		508			538
Other		687			1,944
		570,801			641,514
Allowance for bad debts		(6,867	)		(31,908)
Total	$	563,934		$	609,606

During 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 and recovered $12.3 million in bad debts, including $0.2 million from our Egypt customer which had been reserved for in the current year. Recoveries during 2011 also included $8.4 million in final payments from a previous customer in the North Sea and $3.7 million from another customer in Egypt for whom we no longer perform work, both of which were reserved for in previous years. 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 2010, we recovered $9.7 million in previously reserved bad debts. Recoveries during 2010 included $4.2 million from a previous customer in the North Sea and $5.5 million from a previous customer in Egypt. No provision for bad debts was deemed necessary for 2010. In 2009, we recorded a $10.7 million provision for bad debts to reserve a portion of the uncollected balance of receivables related to our operations in Egypt and recovered $0.9 million associated with the reserve for bad debts recorded in 2008.

Prepaid expenses and other current assets consist of the following:

	December 31,
	2011		2010
	(In thousands)
Rig spare parts and supplies	$	52,637	$	50,288
Deferred mobilization costs		74,659		76,868
Prepaid insurance		12,417		9,587
Deferred tax assets		6,800		9,557
Deposits		1,549		827
Prepaid taxes		37,612		20,347
FOREX contracts		1,262		4,326
Other		5,634		5,353
Total	$	192,570	$	177,153

Accrued liabilities consist of the following:

	December 31,
	2011		2010
	(In thousands)
Rig operating expenses	$	108,342	$	77,995
Payroll and benefits		77,055		79,866
Deferred revenue		67,894		69,825
Accrued capital expenditures		22,725		28,947
Interest payable		21,406		21,219
Construction milestone payments		14,600		154,427
Personal injury and other claims		10,536		11,758
Other		13,842		25,153
Total	$	336,400	$	469,190

At December 31, 2011 and 2010, we had accrued the first installments or construction milestones payable under our rig construction agreements of $14.6 million and $154.4 million, respectively. See Notes 8 and 11.

Consolidated Statement of Cash Flows Information

We paid interest on long-term debt totaling $82.9 million, $83.5 million and $39.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. We paid $0.9 million in interest on Internal Revenue Service assessments during the year ended December 31, 2010.

We paid $150.5 million, $128.5 million and $176.2 million in foreign income taxes, net of foreign tax refunds, during the years ended December 31, 2011, 2010 and 2009, respectively. We paid $94.8 million, $427.5 million and $252.4 million in U.S. federal income taxes during the years ended December 31, 2011, 2010 and 2009, respectively. We paid state income taxes, net of refunds, of $0.2 million, $0.1 million and $0.2 million during the years ended December 31, 2011, 2010 and 2009, respectively.

Cash payments for capital expenditures for the years ended December 31, 2011, 2010 and 2009 included $28.9 million, $64.9 million and $59.4 million, respectively, of capital expenditures that were accrued but unpaid on December 31, 2010, 2009 and 2008, respectively. Capital expenditures that were accrued but not paid as of December 31, 2011 and 2010 totaled $37.3 million and $28.9 million, respectively. We have included these amounts in “Accrued liabilities” in our Consolidated Balance Sheets at December 31, 2011 and 2010.

We recorded an income tax benefit of $1.0 million related to the exercise of employee stock options in 2009.