Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt

Schedule of debt

	Principal amount				Carrying amount
	September 30,		December 31,		September 30,		December 31,
	2023		2022		2023		2022
0.50% Exchangeable Senior Bonds due January 2023	$	—	$	49	$	—	$	49
5.375% Senior Secured Notes due May 2023		—		243		—		242
5.875% Senior Secured Notes due January 2024		—		352		—		350
7.75% Senior Secured Notes due October 2024		—		240		—		238
6.25% Senior Secured Notes due December 2024		—		250		—		248
6.125% Senior Secured Notes due August 2025		—		336		—		332
7.25% Senior Notes due November 2025		354		354		352		351
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		294		294		276		271
7.50% Senior Notes due January 2026		569		569		567		566
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		—		238		—		265
11.50% Senior Guaranteed Notes due January 2027		687		687		938		1,008
6.875% Senior Secured Notes due February 2027		413		482		409		477
8.00% Senior Notes due February 2027		612		612		609		608
7.45% Notes due April 2027		52		52		52		52
8.00% Debentures due April 2027		22		22		22		22
4.50% Shipyard Loans due September 2027		430		439		390		389
8.375% Senior Secured Notes due February 2028		525		—		517		—
7.00% Notes due June 2028		261		261		264		264
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		300		300		721		440
8.75% Senior Secured Notes due February 2030		1,116		—		1,093		—
7.50% Notes due April 2031		396		396		395		394
6.80% Senior Notes due March 2038		610		610		605		605
7.35% Senior Notes due December 2041		177		177		176		176
Total debt		6,818		6,963		7,386		7,347
Less debt due within one year
0.50% Exchangeable Senior Bonds due January 2023		—		49		—		49
5.375% Senior Secured Notes due May 2023		—		243		—		242
5.875% Senior Secured Notes due January 2024		—		83		—		81
7.75% Senior Secured Notes due October 2024		—		60		—		59
6.25% Senior Secured Notes due December 2024		—		62		—		61
6.125% Senior Secured Notes due August 2025		—		66		—		64
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		—		—		—		6
11.50% Senior Guaranteed Notes due January 2027		—		—		71		70
6.875% Senior Secured Notes due February 2027		83		69		81		67
4.50% Shipyard Loans due September 2027		70		20		55		20
8.75% Senior Secured Notes due February 2030		117		—		113		—
Total debt due within one year		270		652		320		719
Total long-term debt	$	6,548	$	6,311	$	7,066	$	6,628

Scheduled maturities of debt

	Principal		Other
	installments		installments		Total
Twelve months ending September 30,
2024	$	270	$	71	$	341
2025		420		72		492
2026		1,680		72		1,752
2027		1,902		36		1,938
2028		534		—		534
Thereafter		2,012		—		2,012
Total installments of debt	$	6,818	$	251		7,069
Total unamortized debt-related balances, net						(250)
Bifurcated compound exchange feature, at estimated fair value						567
Total carrying amount of debt					$	7,386

Schedule of interest expense

	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Contractual interest	$	6	$	3	$	19	$	9
Amortization		5		1		15		5
Bifurcated compound exchange feature		93		—		272		—
Total	$	104	$	4	$	306	$	14

Schedule of debt retirements

	Nine months ended September 30,
	2023		2022
	Redeemed		Redeemed		Exchanged		Total
5.52% Senior Secured Notes due May 2022	$	—	$	18	$	—	$	18
3.80% Senior Notes due October 2022		—		27		—		27
0.50% Exchangeable Senior Bonds due January 2023		—		18		73		91
5.375% Senior Secured Notes due May 2023		243		—		—		—
5.875% Senior Secured Notes due January 2024		311		—		—		—
7.75% Senior Secured Notes due October 2024		240		—		—		—
6.25% Senior Secured Notes due December 2024		250		—		—		—
6.125% Senior Secured Notes due August 2025		336		—		—		—
7.25% Senior Notes due November 2025		—		5		43		48
Aggregate principal amount of debt retired	$	1,380	$	68	$	116	$	184
Aggregate cash payment	$	1,402	$	67	$	—	$	67
Aggregate principal amount of debt issued in exchanges	$	—	$	—	$	112	$	112
Aggregate fair value of warrants issued in exchanges	$	—	$	—	$	5	$	5
Aggregate net gain, three-month period	$	—	$	1	$	6	$	7
Aggregate net gain (loss), nine-month period	$	(32)	$	1	$	6	$	7

Exchanged

Debt

Schedule of debt

Effective interest rates and fair values—At September 30, 2023, the effective interest rates and estimated fair values of our exchangeable bonds were as follows (in millions, except effective interest rates):

	Effective		Fair
	interest rate		value
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		6.9%	$	531
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		18.3%	$	810

Exchange terms—At September 30, 2023, the (a) current exchange rates, expressed as the number of Transocean Ltd. shares per $1,000 note, (b) implied exchange prices per Transocean Ltd. share and (c) aggregate shares, expressed in millions, issuable upon exchange of our exchangeable bonds were as follows:

			Implied
	Exchange		exchange		Shares
	rate		price		issuable
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		190.4762	$	5.25		56.0
4.625% Senior Guaranteed Exchangeable Bonds due September 2029		290.6618	$	3.44		87.2