XML 117 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Supplemental Financial Information
12 Months Ended
Dec. 31, 2012
Supplemental Financial Information [Abstract]  
Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION

Consolidated Balance Sheet Information

Accounts receivable, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Trade
 
$
812.4

 
$
818.2

Other
 
18.2

 
48.6

 
 
830.6

 
866.8

Allowance for doubtful accounts
 
(19.2
)
 
(15.1
)
 
 
$
811.4

 
$
851.7



Other current assets as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Inventory
 
$
207.8

 
$
201.4

Prepaid taxes
 
62.2

 
64.9

Short-term investments
 
50.0

 
4.5

Deferred mobilization costs
 
33.7

 
43.8

Prepaid expenses
 
20.3

 
22.3

Deferred tax assets
 
14.6

 
9.8

Assets held for sale
 
14.2

 

Marketable securities
 

 
32.2

Other
 
22.6

 
20.0

 
 
$
425.4

 
$
398.9


    
    Other assets, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Intangible assets
 
$
143.3

 
$
197.3

Unbilled receivables
 
77.1

 
119.4

Prepaid taxes on intercompany transfers of property
 
58.3

 
68.8

Warranty and other claim receivables
 
30.6

 

Supplemental executive retirement plan assets
 
29.8

 
25.6

Deferred mobilization costs
 
20.8

 
38.4

Deferred tax assets
 
19.3

 
25.9

Wreckage and debris removal receivables
 
13.2

 
19.8

Other
 
29.4

 
26.4

 
 
$
421.8

 
$
521.6



      Accrued liabilities and other as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Personnel costs
 
$
231.1

 
$
159.9

Deferred revenue
 
146.2

 
111.3

Taxes
 
86.9

 
74.0

Accrued interest
 
67.9

 
69.4

Wreckage and debris removal
 
9.0

 
16.0

Intangible liabilities
 

 
43.4

Other
 
43.3

 
41.7

 
 
$
584.4

 
$
515.7



Other liabilities as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Deferred revenue
 
$
224.5

 
$
124.4

Intangible liabilities
 
118.0

 
177.8

Unrecognized tax benefits (inclusive of interest and penalties)

 
129.6

 
75.5

Supplemental executive retirement plan liabilities
 
33.3

 
30.1

Other
 
68.0

 
56.8

 
 
$
573.4

 
$
464.6


 
Consolidated Statement of Income Information

Repair and maintenance expense related to continuing operations for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Repair and maintenance expense
 
$
344.9

 
$
263.7

 
$
117.8



Consolidated Statement of Cash Flows Information
 
Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Interest, net of amounts capitalized
 
$
150.7

 
$
28.6

 
$

Income taxes
 
103.5

 
123.9

 
171.6



Capitalized interest totaled $105.8 million, $80.2 million and $21.3 million during the years ended December 31, 2012, 2011 and 2010, respectively. Capital expenditure accruals totaling $112.5 million, $305.8 million and $39.7 million for the years ended December 31, 2012, 2011 and 2010, respectively, were excluded from investing activities in our consolidated statements of cash flows. 

Amortization of intangibles and other, net, included amortization of intangible assets and liabilities related to the estimated fair values of acquired Company firm drilling contracts in place at the Merger Date, deferred charges for income taxes incurred on intercompany transfers of drilling rigs and certain other deferred costs.

Concentration of Credit Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents and investments and our use of derivatives in connection with the management of foreign currency exchange rate risk. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which to date have been within management's expectations. We mitigate our credit risk relating to cash and investments by focusing on diversification and quality of instruments. Cash balances are maintained in major, well-capitalized commercial banks. Cash equivalents and short-term investments consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents and short-term investments is maintained at several major financial institutions, and we monitor the financial condition of those financial institutions.  

We mitigate our credit risk relating to counterparties of our derivatives through a variety of techniques, including transacting with multiple, high quality financial institutions, thereby limiting our exposure to individual counterparties and generally by entering into International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements, which include provisions for a legally enforceable master netting agreement with almost all of our derivative counterparties. The terms of the ISDA agreements may also include credit support requirements, cross default provisions, termination events, or set-off provisions, in addition to a master netting agreement.  Legally enforceable master netting agreements reduce credit risk by providing protection in bankruptcy in certain circumstances and generally permitting the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. 

During the year ended December 31, 2012, one customer provided a total of $1.0 billion, or 24%, of consolidated revenues, which were attributable to our Floaters segment.  During the year ended December 31, 2011, one customer provided a total of $456.6 million, or 16%, of consolidated revenues, which were attributable to our Floaters segment. During the year ended December 31, 2010, two customers provided a total of $421.4 million, or 25%, of consolidated revenues which were attributable to our Floaters and Jackups segments. 
During the year ended December 31, 2012, revenues provided by our drilling operations in the U. S. Gulf of Mexico totaled $1.3 billion, or 30%, of consolidated revenues, of which 73% were attributable to our Floaters segment. Revenues provided by our drilling operations in Brazil during the year ended December 31, 2012 totaled $1.1 billion, or 25%, of consolidated revenues, which were attributable to our Floaters segment. During the year ended December 31, 2012, revenues provided by our drilling operations in Angola totaled $431.7 million, or 10%, of consolidated revenues, of which 95% were attributable to our Floaters segment.