Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2012	Oct. 23, 2012
Document and Entity Information
Entity Registrant Name	Transocean Ltd.
Entity Central Index Key	0001451505
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		359,425,927
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Operating revenues
Contract drilling revenues	$ 2,310	$ 1,827	$ 6,498	$ 5,396
Other revenues	130	164	420	576
Total operating revenues	2,440	1,991	6,918	5,972
Costs and expenses
Operating and maintenance	1,338	1,344	4,731	3,915
Depreciation and amortization	280	281	846	821
General and administrative	69	67	217	200
Total costs and expenses	1,687	1,692	5,794	4,936
Loss on impairment			(210)
Gain (loss) on disposal of assets, net	50	(1)	40	(1)
Operating income	803	298	954	1,035
Other income (expense), net
Interest income	15	7	43	27
Interest expense, net of amounts capitalized	(180)	(151)	(543)	(443)
Other, net	(8)	(77)	(32)	(79)
Total other income (expense), net	(173)	(221)	(532)	(495)
Income from continuing operations before income tax expense	630	77	422	540
Income tax expense	104	93	96	211
Income (loss) from continuing operations	526	(16)	326	329
Income (loss) from discontinued operations, net of tax	(909)	(5)	(994)	116
Net income (loss)	(383)	(21)	(668)	445
Net income (loss) attributable to noncontrolling interest	(2)	11	7	34
Net income (loss) attributable to controlling interest	$ (381)	$ (32)	$ (675)	$ 411
Earnings (loss) per share-basic
Earnings (loss) from continuing operations (in dollars per share)	$ 1.47	$ (0.08)	$ 0.90	$ 0.92
Earnings (loss) from discontinued operations (in dollars per share)	$ (2.53)	$ (0.02)	$ (2.80)	$ 0.36
Earnings (loss) per share (in dollars per share)	$ (1.06)	$ (0.10)	$ (1.90)	$ 1.28
Earnings (loss) per share-diluted
Earnings (loss) from continuing operations (in dollars per share)	$ 1.47	$ (0.08)	$ 0.90	$ 0.92
Earnings (loss) from discontinued operations (in dollars per share)	$ (2.53)	$ (0.02)	$ (2.80)	$ 0.36
Earnings (loss) per share (in dollars per share)	$ (1.06)	$ (0.10)	$ (1.90)	$ 1.28
Weighted-average shares outstanding
Basic (in shares)	359	320	354	320
Diluted (in shares)	359	320	354	320

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income (loss)	$ (383)	$ (21)	$ (668)	$ 445
Other comprehensive income (loss) before income taxes
Unrecognized components of net periodic benefit costs	(5)	(4)	(32)	(10)
Unrecognized loss on derivative instruments		(7)		(14)
Unrealized loss on marketable securities		(14)		(14)
Recognized components of net periodic benefit costs	11	7	34	19
Recognized (gain) loss on derivative instruments	(3)	3		8
Other comprehensive income (loss) before income taxes	3	(15)	2	(11)
Income taxes related to other comprehensive income (loss)	1		(1)	(2)
Other comprehensive income (loss), net of income taxes	4	(15)	1	(13)
Total comprehensive income (loss)	(379)	(36)	(667)	432
Total comprehensive income (loss) attributable to noncontrolling interest	(2)	6	7	27
Total comprehensive income (loss) attributable to controlling interest	$ (377)	$ (42)	$ (674)	$ 405

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 6,001	$ 4,017
Accounts receivable, net of allowance for doubtful accounts of $28 at September 30, 2012 and December 31, 2011	2,163	2,176
Materials and supplies, net of allowance for obsolescence of $71 and $59 at September 30, 2012 and December 31, 2011, respectively	597	529
Deferred income taxes, net	169	142
Assets held for sale	930	26
Other current assets	444	646
Total current assets	10,304	7,536
Property and equipment	26,567	24,833
Property and equipment of consolidated variable interest entities	817	2,252
Less accumulated depreciation	6,925	6,297
Property and equipment, net	20,459	20,788
Goodwill	2,987	3,217
Other assets	1,562	3,491
Total assets	35,312	35,032
Liabilities and equity
Accounts payable	876	880
Accrued income taxes	257	86
Debt due within one year	2,701	1,942
Debt of consolidated variable interest entities due within one year	28	245
Other current liabilities	2,839	2,375
Total current liabilities	6,701	5,528
Long-term debt	11,211	10,756
Long-term debt of consolidated variable interest entities	177	593
Deferred income taxes, net	450	514
Other long-term liabilities	1,517	1,898
Total long-term liabilities	13,355	13,761
Commitments and contingencies
Redeemable noncontrolling interest		116
Shares, CHF 15.00 par value, 402,282,355 authorized, 167,617,649 conditionally authorized, and 373,830,649 and 365,135,298 issued at September 30, 2012 and December 31, 2011, respectively; 359,418,883 and 349,805,793 outstanding at September 30, 2012 and December 31, 2011, respectively	5,129	4,982
Additional paid-in capital	7,496	7,211
Treasury shares, at cost, 2,863,267 held at September 30, 2012 and December 31, 2011	(240)	(240)
Retained earnings	3,399	4,180
Accumulated other comprehensive loss	(512)	(496)
Total controlling interest shareholders' equity	15,272	15,637
Noncontrolling interest	(16)	(10)
Total equity	15,256	15,627
Total liabilities and equity	$ 35,312	$ 35,032

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) In Millions, except Share data, unless otherwise specified	Sep. 30, 2012 USD ($)	Sep. 30, 2012 CHF	Dec. 31, 2011 USD ($)	Dec. 31, 2011 CHF
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 28		$ 28
Materials and supplies, allowance for obsolescence (in dollars)	$ 71		$ 59
Shares, CHF par value (in Swiss francs per share)		15.00		15.00
Shares, authorized	402,282,355	402,282,355	402,282,355	402,282,355
Shares, conditionally authorized	167,617,649	167,617,649	167,617,649	167,617,649
Shares, issued	373,830,649	373,830,649	365,135,298	365,135,298
Shares, outstanding	359,418,883	359,418,883	349,805,793	349,805,793
Treasury shares	2,863,267	2,863,267	2,863,267	2,863,267

- Definition

Number of shares of common stock outstanding. Common stock represent the ownership interest in a corporation.

+ References+ Details

- Definition

The amount of the valuation account as of the balance sheet date which reduces the carrying amount of inventory to net realizable value; takes into consideration such factors as market value, excessive quantities based on expected sales, technological obsolescence, and shrinkage. May also provide for estimated product returns or price concessions pertaining to product cost.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.6(a))

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 6

-Subparagraph a

-Article 5

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Section A

-Paragraph 9

-Chapter 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 330

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SAB TOPIC 5.BB)

-URI http://asc.fasb.org/extlink&oid=6386940&loc=d3e100047-122729

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 4

-Subparagraph (SX 210.12-09)

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24092-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 330

-SubTopic 10

-Section 35

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6386567&loc=d3e3927-108312

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Paragraph 14

-Chapter 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Paragraph 8, 9, 14

-Chapter 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 09

-Article 12

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) In Millions, except Share data, unless otherwise specified	Total	Total controlling interest shareholders' equity	Shares	Additional paid-in capital	Treasury shares, at cost	Retained earnings	Accumulated other comprehensive loss	Noncontrolling interest
Balance at Dec. 31, 2010	$ 21,340	$ 21,348	$ 4,482	$ 7,504	$ (240)	$ 9,934	$ (332)	$ (8)
Balance (in shares) at Dec. 31, 2010			319,000,000
Increase (Decrease) in Shareholders' Equity
Issuance of shares under share-based compensation plans	(6)	(6)	11	(17)
Issuance of shares under share-based compensation plans (in shares)			1,000,000
Share-based compensation	74	74		74
Obligation for distribution of qualifying additional paid-in capital	(1,017)	(1,017)		(1,017)
Other, net	1	1		1
Net income (loss) attributable to controlling interest	411					411
Other comprehensive income (loss) attributable to controlling interest							(6)
Total comprehensive income (loss) attributable to controlling interest	405	405
Total comprehensive loss attributable to noncontrolling interest	27							(3)
Total comprehensive income (loss)	432
Balance at Sep. 30, 2011	20,794	20,805	4,493	6,545	(240)	10,345	(338)	(11)
Balance (in shares) at Sep. 30, 2011			320,000,000
Balance at Jun. 30, 2011
Increase (Decrease) in Shareholders' Equity
Net income (loss) attributable to controlling interest	(32)
Other comprehensive income (loss) attributable to controlling interest							(10)
Total comprehensive income (loss) attributable to controlling interest	(42)
Total comprehensive loss attributable to noncontrolling interest	6
Total comprehensive income (loss)	(36)
Balance at Sep. 30, 2011	20,794				(240)		(338)
Balance at Dec. 31, 2011	15,627	15,637	4,982	7,211	(240)	4,180	(496)	(10)
Balance (in shares) at Dec. 31, 2011			350,000,000
Increase (Decrease) in Shareholders' Equity
Issuance of shares under share-based compensation plans	(3)	(3)	13	(16)
Issuance of shares in exchange for noncontrolling interest	367	367	134	233
Issuance of shares in exchange for noncontrolling interest (in shares)			9,000,000
Share-based compensation	72	72		72
Other, net	(4)	(4)		(4)
Net income (loss) attributable to controlling interest	(675)					(675)
Fair value adjustment of redeemable noncontrolling interest	(106)	(106)				(106)
Reclassification from redeemable noncontrolling interest	(17)	(17)					(17)
Other comprehensive income (loss) attributable to controlling interest							1
Total comprehensive income (loss) attributable to controlling interest	(674)	(674)
Total comprehensive loss attributable to noncontrolling interest	7							(6)
Total comprehensive income (loss)	(667)
Balance at Sep. 30, 2012	15,256	15,272	5,129	7,496	(240)	3,399	(512)	(16)
Balance (in shares) at Sep. 30, 2012			359,000,000
Balance at Jun. 30, 2012
Increase (Decrease) in Shareholders' Equity
Net income (loss) attributable to controlling interest	(381)
Other comprehensive income (loss) attributable to controlling interest							4
Total comprehensive income (loss) attributable to controlling interest	(377)
Total comprehensive loss attributable to noncontrolling interest	(2)
Total comprehensive income (loss)	(379)
Balance at Sep. 30, 2012	$ 15,256				$ (240)		$ (512)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net income (loss)	$ (383)	$ (21)	$ (668)	$ 445
Adjustments to reconcile to net cash provided by operating activities
Amortization of drilling contract intangibles	(9)	(12)	(32)	(32)
Depreciation and amortization	280	281	846	821
Depreciation and amortization of assets in discontinued operations	48	80	182	258
Share-based compensation expense	24	20	72	74
Loss on impairment			210
Loss on impairment of assets in discontinued operations	878	7	913	32
(Gain) loss on disposal of assets, net	(50)	1	(40)	1
(Gain) loss on disposal of assets in discontinued operations, net	1	1	(70)	(175)
Amortization of debt issue costs, discounts and premiums, net	17	33	52	95
Deferred income taxes	(61)	(6)	(104)	30
Other, net	12	79	47	85
Changes in deferred revenue, net	(64)	(36)	(69)	7
Changes in deferred expenses, net	51	18	30	(66)
Changes in operating assets and liabilities	42	47	416	(353)
Net cash provided by operating activities	786	492	1,785	1,222
Cash flows from investing activities
Capital expenditures	(201)	(124)	(646)	(633)
Capital expenditures for discontinued operations	(24)	(13)	(75)	(37)
Investment in marketable security		(199)		(199)
Proceeds from disposal of assets, net	178	4	189	12
Proceeds from disposal of assets in discontinued operations, net	5	84	196	353
Payment for settlement of forward exchange contract		(78)		(78)
Other, net	7	6	32	(27)
Net cash used in investing activities	(35)	(320)	(304)	(609)
Cash flows from financing activities
Changes in short-term borrowings, net		2	(260)	58
Proceeds from debt	1,493		1,493	5
Repayments of debt	(264)	(23)	(584)	(272)
Proceeds from restricted cash investments	106		298
Deposits to restricted cash investments	(42)		(158)
Distribution of qualifying additional paid-in capital		(254)	(278)	(508)
Other, net	(7)		(8)	(4)
Net cash provided by (used in) financing activities	1,286	(275)	503	(721)
Net increase (decrease) in cash and cash equivalents	2,037	(103)	1,984	(108)
Cash and cash equivalents at beginning of period	3,964	3,349	4,017	3,354
Cash and cash equivalents at end of period	$ 6,001	$ 3,246	$ 6,001	$ 3,246

Nature of Business

9 Months Ended

Sep. 30, 2012

Nature of Business

Nature of Business

Note 1—Nature of Business

Transocean Ltd. (together with its subsidiaries and predecessors, unless the context requires otherwise, “Transocean,” the “Company,” “we,” “us” or “our”) is a leading international provider of offshore contract drilling services for oil and gas wells. We specialize in technically demanding sectors of the offshore drilling business with a particular focus on deepwater and harsh environment drilling services. Our mobile offshore drilling fleet is considered one of the most versatile fleets in the world. We contract our drilling rigs, related equipment and work crews predominantly on a dayrate basis to drill oil and gas wells. At September 30, 2012, we owned or had partial ownership interests in and operated 82 mobile offshore drilling units associated with our continuing operations. As of this date, our fleet consisted of 48 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh Environment semisubmersibles and drillships), 25 Midwater Floaters, and nine High-Specification Jackups. Additionally, we owned and operated 32 Standard Jackups and one swamp barge associated with our discontinued operations (see Note 9—Discontinued Operations). We also had six Ultra-Deepwater drillships and three High-Specification Jackups under construction or under contract to be constructed. See Note 11—Drilling Fleet.

We also provide oil and gas drilling management services, drilling engineering and drilling project management services through Applied Drilling Technology Inc., our wholly owned subsidiary, and through ADT International, a division of one of our United Kingdom (“U.K.”) subsidiaries (together, “ADTI”). ADTI conducts drilling management services primarily on either a dayrate or a completed-project, fixed-price (or “turnkey”) basis.

Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Significant Accounting Policies

Significant Accounting Policies

Note 2—Significant Accounting Policies

Basis of presentation—We have prepared our accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to such rules and regulations, these financial statements do not include all disclosures required by accounting principles generally accepted in the U.S. for complete financial statements. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. Such adjustments are considered to be of a normal recurring nature unless otherwise noted. Operating results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012 or for any future period. The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2011 and 2010 and for each of the three years in the period ended December 31, 2011 included in our annual report on Form 10-K filed on February 27, 2012.

Accounting estimates—To prepare financial statements in accordance with accounting principles generally accepted in the U.S., we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to our allowance for doubtful accounts, materials and supplies obsolescence, property and equipment, investments, notes receivable, goodwill and other intangible assets, income taxes, defined benefit pension plans and other postretirement benefits, contingencies and share-based compensation. We base our estimates and assumptions on historical experience and on various other factors we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from such estimates.

Fair value measurements—We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”), and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.

Consolidation—We consolidate entities in which we have a majority voting interest and entities that meet the criteria for variable interest entities for which we are deemed to be the primary beneficiary for accounting purposes. We eliminate intercompany transactions and accounts in consolidation. We apply the equity method of accounting for investments in entities if we have the ability to exercise significant influence over an entity that (a) does not meet the variable interest entity criteria or (b) meets the variable interest entity criteria, but for which we are not deemed to be the primary beneficiary. We apply the cost method of accounting for investments in other entities if we do not have the ability to exercise significant influence over the unconsolidated entity. See Note 5—Variable Interest Entities.

Share-based compensation—Share-based compensation expense was $24 million and $72 million for the three and nine months ended September 30, 2012, respectively. Share-based compensation expense was $20 million and $74 million for the three and nine months ended September 30, 2011, respectively.

Capitalized interest—We capitalize interest costs for qualifying construction and upgrade projects. We capitalized interest costs on construction work in progress of $12 million and $37 million for the three and nine months ended September 30, 2012, respectively. We capitalized interest costs for construction work in progress of $5 million and $30 million for the three and nine months ended September 30, 2011, respectively.

Reclassifications—We have made certain reclassifications, which did not have an effect on net income, to prior period amounts to conform with the current period’s presentation, including certain reclassifications to our condensed consolidated statements of financial position, results of operations and cash flows to present our operations in the Standard Jackup and swamp barge market sectors, components of our contract drilling service segment, as discontinued operations (See Note 9—Discontinued Operations). Other reclassifications did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows.

Subsequent events—We evaluate subsequent events through the time of our filing on the date we issue our financial statements. See Note 20—Subsequent Events.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

New Accounting Pronouncements

9 Months Ended

Sep. 30, 2012

New Accounting Pronouncements

New Accounting Pronouncements

Note 3—New Accounting Pronouncements

Recently Adopted Accounting Standards

Intangibles-goodwill and other—Effective January 1, 2012, we adopted the accounting standards update that amends the goodwill impairment testing requirements by giving an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether the two-step impairment test is required. The update is effective for goodwill impairment tests performed for annual and interim periods beginning after December 15, 2011. Our adoption did not have an effect on our condensed consolidated financial statements.

Fair value measurements—Effective January 1, 2012, we adopted the accounting standards update that requires additional disclosure about fair value measurements that involve significant unobservable inputs, including additional quantitative information about the unobservable inputs, a description of valuation techniques used, and a qualitative evaluation of the sensitivity of these measurements. Our adoption did not have a material effect on the disclosures contained in our notes to condensed consolidated financial statements.

Recently Issued Accounting Standards

Balance sheet—Effective January 1, 2013, we will adopt the accounting standards update that expands the disclosure requirements for the offsetting of assets and liabilities related to certain financial instruments and derivative instruments. The update requires disclosures to present both gross information and net information for financial instruments and derivative instruments that are eligible for net presentation due to a right of offset, an enforceable master netting arrangement or similar agreement. The update is effective for interim and annual periods beginning on or after January 1, 2013. We do not expect that our adoption will have a material effect on our condensed consolidated balance sheet or the disclosures contained in our notes to condensed consolidated financial statements.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

-Section 45

-Paragraph 13

-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

-Section 45

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Accounting Change

-URI http://asc.fasb.org/extlink&oid=6503790

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Direct Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6510796

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Indirect Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6515603

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6507316

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.10-01.(b)(6))

-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Retrospective Application

-URI http://asc.fasb.org/extlink&oid=6523989

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 01

-Paragraph b

-Subparagraph 6

-Article 10

+ Details

Correction of Errors in Previously Reported Consolidated Financial Statements

9 Months Ended

Sep. 30, 2012

Correction of Errors in Previously Reported Consolidated Financial Statements

Correction of Errors in Previously Reported Consolidated Financial Statements

Note 4—Correction of Errors in Previously Reported Consolidated Financial Statements

We perform assessments of our contingencies and corresponding assets for insurance recoveries on an ongoing basis to evaluate the appropriateness of our balances and disclosures for such contingencies and insurance recoveries. We establish liabilities for estimated loss contingencies when we believe a loss is probable and the amount of the probable loss can be reasonably estimated. We recognize corresponding assets for those loss contingencies that we believe are probable of being recovered through insurance. In performing these assessments in the three months ended June 30, 2012, we identified an error in our previously issued financial statements for the year ended December 31, 2011 and the three months ended March 31, 2012 related to the recognition of assets for insurance recoveries related to legal and other costs totaling $67 million and $37 million, respectively, which we have concluded should not have been recorded because they were not probable of recovery.

We assessed the materiality of this error in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), using both the rollover method and the iron curtain method, as defined in SAB 108, and concluded the error, inclusive of other adjustments discussed below, was immaterial to prior years but could be material to the current year. Under SAB 108, if the prior year error, if corrected in the current year, would be material to the current year, the prior year financial statements should be corrected, even though such correction previously was immaterial to the prior year financial statements. Correcting prior year financial statements for immaterial errors does not require our previously filed reports to be amended, but rather these corrections will be made the next time we file the prior period consolidated financial statements.

In addition to the adjustments in 2011 and 2012 related to the assets for insurance recoveries, we recorded other adjustments related to the years ended December 31, 2011 and 2010 and the three months ended March 31, 2012 to correct for immaterial errors for repair and maintenance costs, income taxes, discontinued operations, and the allocation of net income attributable to noncontrolling interest. These other adjustments were not previously recorded in the appropriate periods, as we concluded that they were immaterial to our previously issued consolidated financial statements.

For the three and nine month periods ended September 30, 2011, correction of these errors increased income from continuing operations by $35 million and $1 million, respectively, and net income attributable to controlling interest by $39 million and $17 million, respectively. The summary of adjustments for increases and (decreases) to net income (loss) from continuing operations and net income (loss) attributable to controlling interest for the applicable periods were as follows (in millions):

	Three months ended September 30, 2011			Nine months ended September 30, 2011

Legal and other costs	$	(19	)	$	(49	)
Repair and maintenance costs	59			11
Income tax benefit	5			25
Other immaterial adjustments, net	(10		)	14
Net adjustment to income from continuing operations	35			1
Net adjustment to income from discontinued operations, net of tax	4			—
Net adjustment to net income attributable to noncontrolling interest	—			(16		)
Net adjustment to net income attributable to controlling interest	$	39		$	17

The effects of the corrections of the errors on our consolidated statements of operations for the three and nine months ended September 30, 2011 are presented in the tables below. Previously reported amounts include reclassifications for discontinued operations (see Note 9—Discontinued Operations). The corrections of the errors had no effect on our consolidated statements of comprehensive income (loss) other than the effect of the changes to net income (loss) for each period. The corrections of the errors had no effect on the previously reported amounts of operating, investing, and financing cash flows in our consolidated statements of cash flows.

	Three months ended September 30, 2011									Nine months ended September 30, 2011
	Previously reported			Adjustments			As adjusted			Previously reported			Adjustments			As adjusted
Operating revenues
Contract drilling revenues	$	1,830		$	(3	)	$	1,827		$	5,399		$	(3	)	$	5,396
Other revenues	164			—			164			576			—			576
	1,994			(3		)	1,991			5,975			(3		)	5,972
Costs and expenses
Operating and maintenance	1,377			(33		)	1,344			3,894			21			3,915
Depreciation and amortization	281			—			281			821			—			821
General and administrative	67			—			67			200			—			200
	1,725			(33		)	1,692			4,915			21			4,936
Loss on impairment	—			—			—			—			—			—
Gain (loss) on disposal of assets, net	(1		)	—			(1		)	(1		)	—			(1		)
Operating income	268			30			298			1,059			(24		)	1,035

Other income (expense), net
Interest income	7			—			7			27			—			27
Interest expense, net of amounts capitalized	(151		)	—			(151		)	(443		)	—			(443		)
Other, net	(77		)	—			(77		)	(79		)	—			(79		)
	(221		)	—			(221		)	(495		)	—			(495		)
Income from continuing operations before income tax expense	47			30			77			564			(24		)	540
Income tax expense	98			(5		)	93			236			(25		)	211
Income (loss) from continuing operations	(51		)	35			(16		)	328			1			329
Income (loss) from discontinued operations, net of tax	(9		)	4			(5		)	116			—			116

Net income (loss)	(60		)	39			(21		)	444			1			445
Net income (loss) attributable to noncontrolling interest	11			—			11			50			(16		)	34
Net income (loss) attributable to controlling interest	$	(71	)	$	39		$	(32	)	$	394		$	17		$	411

Earnings (loss) per share-basic
Earnings (loss) from continuing operations	$	(0.19	)	$	0.11		$	(0.08	)	$	0.86		$	0.06		$	0.92
Earnings (loss) from discontinued operations	(0.03		)	0.01			(0.02		)	0.36			—			0.36
Earnings (loss) per share	$	(0.22	)	$	0.12		$	(0.10	)	$	1.22		$	0.06		$	1.28

Earnings (loss) per share-diluted
Earnings (loss) from continuing operations	$	(0.19	)	$	0.11		$	(0.08	)	$	0.86		$	0.06		$	0.92
Earnings (loss) from discontinued operations	(0.03		)	0.01			(0.02		)	0.36			—			0.36
Earnings (loss) per share	$	(0.22	)	$	0.12		$	(0.10	)	$	1.22		$	0.06		$	1.28

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References+ Details

Variable Interest Entities

9 Months Ended

Sep. 30, 2012

Variable Interest Entities

Variable Interest Entities

Note 5—Variable Interest Entities

Consolidated variable interest entities—The carrying amounts associated with our consolidated variable interest entities, after eliminating the effect of intercompany transactions, were as follows (in millions):

	September 30, 2012						December 31, 2011
	Assets		Liabilities		Net carrying amount		Assets		Liabilities		Net carrying amount
Variable interest entity
TPDI	$	—	$	—	$	—	$	1,562	$	673	$	889
ADDCL	941		313		628		930		334		596
Total	$	941	$	313	$	628	$	2,492	$	1,007	$	1,485

Transocean Pacific Drilling Inc. (“TPDI”), a consolidated British Virgin Islands company, met the definition of a variable interest entity for which we were the primary beneficiary. On May 31, 2012, TPDI became a wholly owned subsidiary, and no longer meets the definition of a variable interest entity. See Note 16—Redeemable Noncontrolling Interest.

Angola Deepwater Drilling Company Limited (“ADDCL”), a consolidated Cayman Islands company, is a variable interest entity for which we are the primary beneficiary. Accordingly, we consolidate the operating results, assets and liabilities of ADDCL.

Unconsolidated variable interest entities—As holder of two notes receivable and a lender under a working capital loan, we have a variable interest in Awilco Drilling plc (“Awilco”), a U.K. company listed on the Oslo Stock Exchange. In the three months ended March 31, 2012, Awilco encountered operational downtime, both planned and unplanned, and disputed billings, at which time we reevaluated whether Awilco met the definition of a variable interest entity. Based on our reevaluation, we determined that Awilco now met the definition of a variable interest entity since its equity at risk is insufficient to permit it to carry on its activities without additional subordinated financial support. We also continue to believe that we are not the primary beneficiary since we do not have the power to direct the activities that most significantly impact the entity’s economic performance.

The notes receivable were originally accepted in exchange for and are secured by two drilling units. The notes receivable have stated interest rates of nine percent and are payable in scheduled quarterly installments of principal and interest through maturity in January 2015. The working capital loan, also secured by the two drilling units, has a stated interest rate of 10 percent and is payable in scheduled quarterly installments of principal and interest through maturity in January 2013, subject to acceleration under certain conditions. We evaluate the credit quality and financial condition of Awilco quarterly. The aggregate carrying amount of the notes receivable was $106 million and $110 million at September 30, 2012 and December 31, 2011, respectively. The aggregate carrying amount of the working capital loan receivable was $5 million and $29 million at September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, our aggregate exposure to loss on these receivable instruments was $111 million.

Business Combination

9 Months Ended

Sep. 30, 2012

Business Combination

Business Combination

Note 6—Business Combination

As of October 3, 2011, the acquisition date, we held 99 percent of the shares of Aker Drilling ASA (“Aker Drilling”), a Norwegian company formerly listed on the Oslo Stock Exchange, having paid an aggregate amount of NOK 7.9 billion, equivalent to $1.4 billion. On October 4, 2011, we acquired the remaining noncontrolling interest from holders of Aker Drilling that were required to tender their shares pursuant to Norwegian law. We believe the acquisition of Aker Drilling enhances the composition of our High-Specification Floater fleet and strengthens our presence in Norway. In accounting for the business combination, we applied the acquisition method of accounting, recording the assets and liabilities of Aker Drilling at their estimated fair values as of the acquisition date.

As of October 3, 2011, the acquisition price included the following, measured at estimated fair value: current assets of $323 million, drilling rigs and other property and equipment of $1.8 billion, other assets of $757 million, and the assumption of long-term debt of $1.6 billion and other liabilities of $291 million. The acquired assets included $901 million of cash investments restricted for the payment of certain assumed debt instruments. The excess of the purchase price over the estimated fair value of net assets acquired was approximately $285 million, which was recorded as goodwill. We subsequently made adjustments to the estimated fair value of certain assets and liabilities, which are reflected in the amounts noted above, with a corresponding net increase to goodwill in the amount of $12 million.

In the three and nine months ended September 30, 2012, our operating revenues included approximately $90 million and $285 million of contract drilling revenues, respectively, associated with the operations of the two Harsh Environment, Ultra-Deepwater semisubmersibles that we acquired in our acquisition of Aker Drilling.

Unaudited pro forma combined operating results from continuing operations, assuming the acquisition was completed as of January 1, 2011, were as follows (in millions, except per share data):

	Three months ended September 30, 2011		Nine months ended September 30, 2011
Operating revenues	$	2,099	$	6,284
Operating income	345		1,181
Income (loss) from continuing operations	$	35	$	427

Per share earnings (loss) from continuing operations
Basic	$	0.08	$	1.23
Diluted	$	0.08	$	1.23

The pro forma financial information includes various adjustments, primarily related to depreciation expense resulting from the fair value adjustments to the acquired property and equipment. The pro forma information is not necessarily indicative of the results of operations had the acquisition of Aker Drilling been completed on the assumed dates or the results of operations for any future periods.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph F4

-Subparagraph e

-Appendix F

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141

-Paragraph 51, 52

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 20

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 67-73

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 20

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 20

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 88-16

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 17: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 30

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 18: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 19: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 805

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463

+ Details

Impairments

9 Months Ended

Sep. 30, 2012

Impairments

Impairments

Note 7—Impairments

Definite-lived intangible assets—During the nine months ended September 30, 2012, we determined that the customer relationships intangible asset associated with our drilling management services reporting unit was impaired due to the declining market outlook for these services in the shallow waters of the U.S. Gulf of Mexico as well as the increased regulatory environment for obtaining drilling permits and the diminishing demand for our drilling management services. We estimated the fair value of the customer relationships intangible asset using the multiperiod excess earnings method, a valuation methodology that applies the income approach. Our valuation required us to project the future performance of the drilling management services reporting unit based on significant unobservable inputs, representing a Level 3 fair value measurement, including assumptions for future commodity prices, projected demand for our services, rig availability and dayrates. As a result of our valuation, we determined that the carrying amount of the customer relationships intangible asset exceeded its fair value, and we recognized a loss on impairment of $53 million ($37 million, or $0.10 per diluted share from continuing operations, net of tax) in the nine months ended September 30, 2012.

Goodwill and other indefinite-lived intangible assets—As a result of our annual impairment test, performed as of October 1, 2011, we determined that the goodwill associated with our contract drilling services reporting unit was impaired due to a decline in projected cash flows and market valuations for this reporting unit. In the year ended December 31, 2011, we recognized a loss on impairment, representing our best estimate, in the amount of $5.2 billion ($16.15 per diluted share from continuing operations), which had no tax effect. In the nine months ended September 30, 2012, we completed our analysis and recognized an incremental adjustment to our original estimate in the amount of $118 million ($0.33 per diluted share from continuing operations), which had no tax effect. We estimated the implied fair value of the goodwill using a variety of valuation methods, including cost, income, and market approaches. Our valuation required us to project the future performance of our contract drilling services reporting unit based on significant unobservable inputs, representing a Level 3 fair value measurement, including assumptions for future commodity prices, projected demand for our services, rig availability and dayrates.

During the nine months ended September 30, 2012, we determined that the trade name intangible asset associated with our drilling management services reporting unit was impaired due to the declining market outlook for these services in the shallow waters of the U.S. Gulf of Mexico as well as the increased regulatory environment for obtaining drilling permits and the diminishing demand for drilling management services. We estimated the fair value of the trade name intangible asset using the relief from royalty method, a valuation methodology that applies the income approach. Our valuation required us to project the future performance of the drilling management services reporting unit based on significant unobservable inputs, representing a Level 3 fair value measurement, including assumptions for future commodity prices, projected demand for drilling management services, rig availability and dayrates. As a result of our valuation, we determined that the carrying amount of the trade name intangible asset exceeded its fair value, and we recognized a loss on impairment of $39 million ($25 million, or $0.07 per diluted share from continuing operations, net of tax) in the nine months ended September 30, 2012.

Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes

Income Taxes

Note 8—Income Taxes

Tax rate—Transocean Ltd., a holding company and Swiss resident, is exempt from cantonal and communal income tax in Switzerland, but is subject to Swiss federal income tax. At the federal level, qualifying net dividend income and net capital gains on the sale of qualifying investments in subsidiaries are exempt from Swiss federal income tax. Consequently, Transocean Ltd. expects dividends from its subsidiaries and capital gains from sales of investments in its subsidiaries to be exempt from Swiss federal income tax.

Our provision for income taxes is based on the tax laws and rates applicable in the jurisdictions in which we operate and earn income. The relationship between our provision for or benefit from income taxes and our income or loss before income taxes can vary significantly from period to period considering, among other factors, (a) the overall level of income before income taxes, (b) changes in the blend of income that is taxed based on gross revenues rather than income before taxes, (c) rig movements between taxing jurisdictions and (d) our rig operating structures. Generally, our annual marginal tax rate is lower than our annual effective tax rate.

The estimated annual effective tax rates for our continuing operations were 20.5 percent and 30.8 percent for the nine months ended September 30, 2012 and 2011, respectively. These rates were based on estimated annual income before income taxes for each period after adjusting for various discrete items.

Deferred taxes—The valuation allowance for our non-current deferred tax assets was as follows (in millions):

	September 30, 2012		December 31, 2011
Valuation allowance for non-current deferred tax assets	$	182	$	183

Unrecognized tax benefits—The liabilities related to our unrecognized tax benefits, including related interest and penalties that we recognize as a component of income tax expense, were as follows (in millions):

	September 30, 2012		December 31, 2011
Unrecognized tax benefits, excluding interest and penalties	$	453	$	515
Interest and penalties	207		256
Unrecognized tax benefits, including interest and penalties	$	660	$	771

We engage in ongoing discussions with tax authorities regarding the resolution of tax matters in the various jurisdictions in which we operate. Both the ultimate outcome of these tax matters and the timing of any resolution or closure of the tax audits are highly uncertain. In the three and nine months ended September 30, 2012, the amount of current tax benefit recognized from the settlement of disputes with tax authorities and from the expiration of statutes of limitations, including interest and penalties, was $2 million and $196 million, respectively. It is reasonably possible that the total amount of our existing liabilities for unrecognized tax benefit could decrease by up to 20 percent or increase by up to 10 percent in the next 12 months.

Tax returns—We file federal and local tax returns in several jurisdictions throughout the world. With few exceptions, we are no longer subject to examinations of our U.S. and non-U.S. tax matters for years prior to 2006.

Our tax returns in the major jurisdictions in which we operate, other than the U.S., Norway and Brazil which are mentioned below, are generally subject to examination for periods ranging from three to six years. We have agreed to extensions beyond the statute of limitations in two major jurisdictions for up to 17 years. Tax authorities in certain jurisdictions are examining our tax returns and in some cases have issued assessments. We are defending our tax positions in those jurisdictions. While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect the ultimate liability to have a material adverse effect on our consolidated statement of financial position or results of operations, although it may have a material adverse effect on our consolidated cash flows.

U.S. tax investigations—With respect to our 2004 U.S. federal income tax return, the U.S. tax authorities withdrew all of their previously proposed tax adjustments, including all claims related to transfer pricing. In January 2012, a judge in the U.S. Tax Court entered a decision of no deficiency for the 2004 tax year and cancelled the trial previously scheduled to take place in February 2012. With respect to our 2005 U.S. federal income tax returns, the U.S. tax authorities have withdrawn all of their previously proposed tax adjustments. In May 2010, we received an assessment from the U.S. tax authorities related to our 2006 and 2007 U.S. federal income tax returns. In July 2010, we filed a protest letter with the U.S. tax authorities responding to this assessment. The significant issues raised in the assessment relate to transfer pricing for certain charters of drilling rigs between our subsidiaries and the creation of intangible assets resulting from the performance of engineering services between our subsidiaries. These two items would result in net adjustments of approximately $278 million of additional taxes, excluding interest and penalties. An unfavorable outcome on these adjustments could result in a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. We believe our U.S. federal income tax returns are materially correct as filed, and we intend to continue to vigorously defend against all such claims.

In addition, the May 2010 assessment included adjustments related to a series of restructuring transactions that occurred between 2001 and 2004. These restructuring transactions impacted our basis in our former subsidiary, TODCO, which we disposed of in 2004 and 2005. The authorities are disputing the amount of capital losses that resulted from the disposition of TODCO. We utilized a portion of the capital losses to offset capital gains on our U.S. federal income tax returns for 2006 through 2009. The majority of the capital losses were unutilized and expired on December 31, 2009. The adjustments would also impact the amount of certain net operating losses and other carryovers in 2006 and later years. The authorities are also contesting the characterization of certain amounts of income received in 2006 and 2007 as capital gain and thus the availability of the capital loss to offset such gains. These claims with respect to our U.S. federal income tax returns for 2006 through 2009 could result in net tax adjustments of approximately $295 million, excluding interest and penalties. An unfavorable outcome on these potential adjustments could result in a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. We believe that our U.S. federal income tax returns are materially correct as filed, and we intend to continue to vigorously defend against any potential claims.

The May 2010 assessment also included certain claims with respect to withholding taxes and certain other items resulting in net tax adjustments of approximately $160 million, excluding interest. In addition, the tax authorities assessed penalties associated with the various tax adjustments for the 2006 and 2007 audits in the aggregate amount of approximately $88 million, excluding interest. An unfavorable outcome on these adjustments could result in a material adverse effect on our consolidated statement of financial position, results of operations and cash flows. We believe that our U.S. federal income tax returns are materially correct as filed, and we intend to continue to vigorously defend against potential claims.

In February 2012, we received an assessment from the U.S. tax authorities related to our 2008 and 2009 U.S. federal income tax returns. The significant issues raised in the assessment relate to transfer pricing for certain charters of drilling rigs between our subsidiaries and the creation of intangible assets resulting from the performance of engineering services between our subsidiaries. These items would result in net adjustments of approximately $473 million of additional taxes, excluding interest and penalties. An unfavorable outcome on these adjustments could result in a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. Furthermore, if the authorities were to continue to pursue these positions with respect to subsequent years and were successful in such assertions, our effective tax rate on worldwide earnings with respect to years following 2009 could increase substantially, and could have a material adverse effect on our consolidated results of operations and cash flows. We believe our U.S. federal income tax returns are materially correct as filed, and we intend to continue to vigorously defend against all such claims.

Norway tax investigations—Norwegian civil tax and criminal authorities are investigating various transactions undertaken by our subsidiaries in 2001 and 2002 as well as the actions of certain employees of our former external tax advisors on these transactions. The authorities issued tax assessments of approximately $116 million, plus interest, related to the migration of a subsidiary that was previously subject to tax in Norway, approximately $70 million, plus interest, related to a 2001 dividend payment, and approximately $7 million, plus interest, related to certain foreign exchange deductions and dividend withholding tax. We have filed or expect to file appeals to these tax assessments. We have provided a parent company guarantee in the amount of approximately $118 million with respect to one of these tax disputes. Furthermore, we may be required to provide some form of additional financial security, in an amount up to $206 million, including interest and penalties, for other assessed amounts as these disputes are appealed and addressed by the Norwegian courts. The authorities have indicated that they plan to seek penalties of 60 percent on most but not all matters. In June 2011, the Norwegian authorities issued criminal indictments against two of our subsidiaries alleging misleading or incomplete disclosures in Norwegian tax returns for the years 1999 through 2002, as well as inaccuracies in Norwegian statutory financial statements for the years ended December 31, 1996 through 2001. The criminal trial has been scheduled for December 2012. Two employees of our former external tax advisors were also issued indictments with respect to the disclosures in our tax returns. In October 2011, the Norwegian authorities issued criminal indictments against a Norwegian tax attorney related to certain of our restructuring transactions and to the 2001 dividend payment. The indicted Norwegian tax attorney worked for us in an advisory capacity on these transactions. We believe the charges brought against us are without merit and do not alter our technical assessment of the underlying claims. In January 2012, the Norwegian authorities supplemented the previously issued criminal indictments by issuing a financial claim of approximately $311 million, jointly and severally, against our two subsidiaries, the two external advisors and the external tax attorney. In February 2012, the authorities dropped the previously existing tax assessment related to a certain restructuring transaction. In April 2012, the Norwegian tax authorities supplemented the previously issued criminal indictments against our two subsidiaries by extending a criminal indictment against a third subsidiary on the same matter, alleging misleading or incomplete disclosures in Norwegian tax returns for the years 2001 and 2002. We believe our Norwegian tax returns are materially correct as filed, and we intend to continue to vigorously contest any assertions to the contrary by the Norwegian civil and criminal authorities in connection with the various transactions being investigated. An unfavorable outcome on the Norwegian civil or criminal tax matters could result in a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. See Note 20—Subsequent Events.

Brazil tax investigations—Certain of our Brazilian income tax returns for the years 2000 through 2004 are currently under examination. The Brazilian tax authorities have issued tax assessments totaling $98 million, plus a 75 percent penalty in the amount of $73 million and interest through December 31, 2011 in the amount of $146 million. We believe our returns are materially correct as filed, and we are vigorously contesting these assessments. On January 25, 2008, we filed a protest letter with the Brazilian tax authorities, and we are currently engaged in the appeals process. An unfavorable outcome on these proposed assessments could result in a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

Other tax matters—We conduct operations through our various subsidiaries in a number of countries throughout the world. Each country has its own tax regimes with varying nominal rates, deductions and tax attributes. From time to time, we may identify changes to previously evaluated tax positions that could result in adjustments to our recorded assets and liabilities. Although we are unable to predict the outcome of these changes, we do not expect the effect, if any, resulting from these assessments to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations

Discontinued Operations

Note 9—Discontinued Operations

Standard Jackup and swamp barge market sectors—In September 2012, we committed to a strategy to discontinue operations in the Standard Jackup and swamp barge market sectors, components of our contract drilling services operating segment, and to increase our focus on High-Specification Floaters and High-Specification Jackups. Consistent with our strategy, we committed to a plan to sell 46 Standard Jackups and one swamp barge, representing our entire fleet of rigs in these market sectors. As a result of our decision, as of September 30, 2012, we reclassified the assets and liabilities associated with this disposal group to assets held for sale and other liabilities for all periods presented, and as of December 31, 2011, we reclassified the assets and liabilities associated with this disposal group to other current assets, other assets and other long-term liabilities. At September 30, 2012, the aggregate carrying amount of the assets associated with the disposal group was $924 million. At December 31, 2011, the aggregate carrying amounts of the assets and liabilities associated with the disposal group were $1.9 billion and $33 million, respectively.

As a result of our decision to discontinue operations associated with these components of our contract drilling services operating segment, we allocated $112 million of goodwill to the disposal group based on the fair value of the disposal group relative to the fair value of the contract drilling services operating segment. We estimated the implied fair value of the goodwill attributable to the disposal group using a variety of valuation methods, including the income and market approaches. Our valuation required us to project the future performance of the disposal group and of our contract drilling services reporting unit based on significant unobservable inputs, representing a Level 3 fair value measurement, including assumptions for future commodity prices, projected demand for our services, rig availability and dayrates.

Disposal transactions with Shelf Drilling—In September 2012, in connection with our strategy to discontinue operations in the Standard Jackup and swamp barge market sectors, we entered into definitive agreements with Shelf Drilling Holdings, Ltd. and certain of its affiliates (“Shelf Drilling”) to sell 37 Standard Jackups, including the Standard Jackup GSF Baltic, which was formerly classified as a High-Specification Jackup, the Standard Jackups C.E. Thornton, F.G. McClintock, GSF Adriatic I, GSF Adriatic V, GSF Adriatic VI, GSF Adriatic IX, GSF Adriatic X, GSF Compact Driller, GSF Galveston Key, GSF High Island II, GSF High Island IV, GSF High Island V, GSF High Island VII, GSF High Island IX, GSF Key Gibraltar, GSF Key Hawaii, GSF Key Manhattan, GSF Key Singapore, GSF Main Pass I, GSF Main Pass IV, GSF Parameswara, GSF Rig 105, GSF Rig 124, GSF Rig 141, Harvey H. Ward, J.T. Angel, Randolph Yost, Ron Tappmeyer, Transocean Comet, Trident II, Trident VIII, Trident IX, Trident XII, Trident XIV, Trident XV and Trident XVI and the swamp barge Hibiscus, along with related equipment.

As of September 30, 2012, the aggregate carrying amount of the rigs and related equipment, materials and supplies and other related assets included in the Shelf Drilling disposal transactions was approximately $800 million. The aggregate sales price associated with the disposal transactions is approximately $1.1 billion, including net cash proceeds of $855 million and non-cash seller financing of $195 million, and the transactions are subject to certain working capital and other adjustments. The disposal transactions are expected to close in the fourth quarter of 2012. We have agreed, after the closing of the disposal transactions, to temporarily continue operating certain rigs under operating agreements and to perform other services for Shelf Drilling under a transition services agreement. Under the transition services agreement, we are required to continue to perform these transition services for a period ranging from nine months to 27 months after the closing.

For a period of up to three years following the closing of the disposal transactions, we have agreed to provide to Shelf Drilling up to $125 million of financial support by maintaining letters of credit, surety bonds and parent guarantees to guarantee various contract bidding and performance activities associated with the drilling units being sold to Shelf Drilling and in effect at the closing of the disposal transactions. Included within the $125 million maximum amount, we have agreed to provide up to $65 million of additional financial support, excluding parent guarantees, in connection with any new drilling contracts related to such drilling units. At September 30, 2012, we had $116 million outstanding letters of credit, issued under our committed and uncommitted credit lines, in support of rigs associated with the Shelf Drilling disposal transactions. See Note 15—Commitments and Contingencies.

The parent company of Shelf Drilling, which will own the drilling units upon closing of the disposal transactions, is a newly formed company sponsored equally by three private equity firms. The non-cash seller financing consists of perpetual preference shares of the parent company of Shelf Drilling. The preference shares will be entitled to dividends that are cumulative and payable in-kind at 10 percent per annum, escalating two percent biannually to a maximum of 14 percent but subject to reductions or increases under certain circumstances. The preference shares are subject to mandatory redemption upon certain specified events, including an initial public offering or change of control of Shelf Drilling.

As a result of the pending disposal transactions, we increased our liabilities for postemployment obligations and severance payments. In the three and nine months ended September 30, 2012, we recognized $20 million of personnel costs, included in the loss on impairment disclosed below, relating to employees and contract labor. The loss on impairment also included approximately $60 million of costs for required reactivation of one drilling unit after the closing of the disposal transactions and costs to mobilize certain drilling units.

Disposals of other Standard Jackups—In September 2012, in connection with our strategy to discontinue operations in the Standard Jackup and swamp barge market sectors, we also committed to a plan to sell, within the next 12 months, the remaining nine Standard Jackups, including D.R. Stewart, GSF Adriatic VIII, GSF Rig 103, GSF Rig 127, GSF Rig 134, Interocean III, Trident 17, Trident IV-A and Trident VI. At September 30, 2012, the nine Standard Jackups and related equipment, materials and supplies and other related assets that were classified as held for sale and unrelated to the Shelf Drilling disposal transactions had an aggregate carrying amount of $124 million.

Caspian Sea operations—In February 2011, in connection with our efforts to dispose of non-strategic assets, we sold the subsidiary that owns the High-Specification Jackup Trident 20, located in the Caspian Sea. The disposal of this subsidiary, a component of our contract drilling services segment, reflects our decision to discontinue operations in the Caspian Sea. Through June 2011, we continued to operate Trident 20 under a bareboat charter to perform services for the customer and the buyer reimbursed us for the approximate cost of providing these services. Additionally, we provided certain transition services to the buyer through September 2011.

Oil and gas properties—In March 2011, in connection with our efforts to dispose of non-strategic assets, we engaged an unaffiliated advisor to coordinate the sale of the assets of our oil and gas properties reporting unit, a component of our other operations segment, which comprises the exploration, development and production activities performed by Challenger Minerals Inc. and Challenger Minerals (North Sea) Limited, our wholly owned oil and gas subsidiaries.

Summarized results of discontinued operations—The summarized results of operations included in income from discontinued operations were as follows (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Operating revenues	$	257		$	259		$	696		$	804
Operating and maintenance expense	(224		)	(169		)	(656		)	(539		)
Depreciation and amortization expense	(48		)	(80		)	(182		)	(258		)
Loss on impairment of assets in discontinued operations	(878		)	(7		)	(913		)	(32		)
Gain (loss) on disposal of assets in discontinued operations, net	(1		)	(1		)	70			175
Income (loss) from discontinued operations before income tax expense	(894		)	2			(985		)	150
Income tax expense	(15		)	(7		)	(9		)	(34		)
Income (loss) from discontinued operations, net of tax	$	(909	)	$	(5	)	$	(994	)	$	116

Impairments—In September 2012, in connection with our reclassification of the Standard Jackup and swamp barge disposal group to assets held for sale, we determined that the disposal group was impaired since its aggregate carrying amount exceeded its aggregate fair value. We estimated the fair value of this disposal group by applying a variety of valuation methods, including cost, income, and market approaches to estimate the exit price that would be received for the assets in the principal or most advantageous market for the assets in an orderly transaction between market participants as of the measurement date. Although we based certain components of our valuation on significant other observable inputs, including binding sale and purchase agreements, a significant portion of our valuation required us to project the future performance of the disposal group based on significant unobservable inputs, representing a Level 3 fair value measurement, including assumptions regarding long-term projections for future revenues and costs, dayrates, rig utilization and idle time. We measured the impairments of the disposal group as the amount by which the carrying amounts exceeded its estimated fair value less costs to sell. Costs to sell the disposal group included approximately $17 million of legal and financial advisory costs and expenses. In the three and nine months ended September 30, 2012, as a result of our valuation, we recognized losses of $744 million ($2.09 per diluted share) and $112 million ($0.31 per diluted share), with no tax effect, associated with the impairment of long-lived assets and the goodwill, respectively.

In the nine months ended September 30, 2012, we also recognized aggregate losses of $29 million ($0.08 per diluted share), which had no tax effect, associated with the impairment of the Standard Jackups GSF Adriatic II and GSF Rig 136, which were classified as assets held for sale at the time of impairment. In the three and nine months ended September 30, 2011, we recognized aggregate losses of $3 million ($0.01 per diluted share from continuing operations), which had no tax effect, and $28 million ($0.08 per diluted share from continuing operations), which had a tax effect of less than $1 million, respectively, associated with the impairment of the Standard Jackups George H. Galloway, GSF Britannia, GSF Labrador and the swamp barge Searex IV, which were classified as assets held for sale at the time of impairment. We measured the impairments of the drilling units and related equipment as the amount by which the carrying amounts exceeded the estimated fair values less costs to sell. We estimated the fair value of the assets using significant other observable inputs, representing Level 2 fair value measurements, including binding sale and purchase agreements for the drilling units and related equipment.

In the three and nine months ended September 30, 2012, we recognized losses of $2 million, which had no tax effect, and $8 million ($7 million or $0.02 per diluted share, net of tax) associated with the impairment of our oil and gas properties, which were classified as assets held for sale, since the carrying amount of the properties exceeded the estimated fair value less costs to sell the properties. In the three and nine months ended September 30, 2011, we recognized a loss of $4 million ($2 million or $0.01 per diluted share, net of tax) associated with the impairment of our oil and gas properties, which were classified as assets held for sale, since the carrying amount of the properties exceeded the estimated fair value less costs to sell the properties. We estimated fair value based on significant other observable inputs, representing a Level 2 fair value measurement, including a binding sale and purchase agreement for the properties.

Disposals—During the nine months ended September 30, 2012, we completed the sales of the Standard Jackups GSF Adriatic II, GSF Rig 136, Roger W. Mowell, Transocean Nordic and Transocean Shelf Explorer, along with related equipment. During the nine months ended September 30, 2011, we completed the sales of the Standard Jackups George H. Galloway, GSF Britannia, GSF Labrador and Transocean Mercury and the swamp barge Searex IV, along with related equipment. In connection with the disposal of these assets, in the nine months ended September 30, 2012 and 2011, we received aggregate net cash proceeds of $179 million and $94 million, and we recognized a net gains on disposal of these assets in the amount of $64 million ($0.18 per diluted share) and $8 million ($0.03 per diluted share), respectively which had no tax effect in either period. For the three and nine months ended September 30, 2012, we recognized losses on disposal of unrelated assets in the amount of $1 million and $6 million, respectively. For the three and nine months ended September 30, 2011, we recognized losses on disposal of unrelated assets in the amount of $2 million.

In the nine months ended September 30, 2011, in connection with the sale of the High-Specification Jackup Trident 20, we received net cash proceeds of $259 million and recognized a gain on the disposal of the assets of $169 million ($0.51 per diluted share), which had no tax effect.

In April 2012, we completed the sale of the assets of Challenger Minerals Inc. for net cash proceeds of $7 million, and in May 2012, we received an additional $10 million of cash proceeds from the buyer of Challenger Minerals (North Sea) Limited. In the three and nine months ended September 30, 2012, we recognized gains of $1million and $12 million ($0.03 per diluted share), respectively, which had no tax effect for either period, associated with the disposal of oil and gas properties.

Assets and liabilities of discontinued operations—As a result of our decision to discontinue the operations in the Standard Jackups and swamp barge market sectors, the Caspian Sea and the oil and gas exploration and production market, we have classified the related assets and liabilities of these components of our business to other current assets, other assets, other current liabilities and other long-term liabilities as of September 30, 2012 and December 31, 2011. The carrying amounts of the major classes of assets and liabilities associated with these operations were classified as follows (in millions):

	September 30, 2012		December 31, 2011
Assets
Rigs and related equipment, net	$	819	$	—
Materials and supplies	99		—
Oil and gas properties, net	6		24
Other related assets	6		2
Assets held for sale	$	930	$	26

Materials and supplies	$	—	$	98
Other assets	8		21
Other current assets	$	8	$	119

Rigs and related equipment, net	$	—	$	1,745
Deferred costs	—		42
Other assets	$	—	$	1,787

Liabilities
Deferred revenue	$	—	$	17
Deferred income taxes, net	6		6
Other liabilities	3		14
Other current liabilities	$	9	$	37

Deferred revenue	$	—	$	8
Deferred income taxes, net	—		5
Other liabilities	$	—	$	13

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 144

-Paragraph 43-48

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Earnings Per Share

Note 10—Earnings Per Share

The numerator and denominator used for the computation of basic and diluted per share earnings from continuing operations were as follows (in millions, except per share data):

	Three months ended September 30,										Nine months ended September 30,
	2012				2011						2012				2011
	Basic		Diluted		Basic			Diluted			Basic		Diluted		Basic			Diluted
Numerator for earnings (loss) per share
Income (loss) from continuing operations attributable to controlling interest	$	528	$	528	$	(27	)	$	(27	)	$	319	$	319	$	295		$	295
Undistributed earnings allocable to participating securities	—		—		—			—			—		—		(2		)	(2)
Income (loss) from continuing operations available to shareholders	$	528	$	528	$	(27	)	$	(27	)	$	319	$	319	$	293		$	293

Denominator for earnings (loss) per share
Weighted-average shares outstanding	359		359		320			320			354		354		320			320
Effect of stock options and other share-based awards	—		—		—			—			—		—		—			—
Weighted-average shares for per share calculation	359		359		320			320			354		354		320			320

Per share earnings (loss) from continuing operations	$	1.47	$	1.47	$	(0.08	)	$	(0.08	)	$	0.90	$	0.90	$	0.92		$	0.92

For the three and nine months ended September 30, 2012, respectively, we excluded 1.9 million share-based awards from the calculation since the effect would have been anti-dilutive. For the three and nine months ended September 30, 2011, respectively, we excluded 2.9 million and 1.8 million share-based awards from the calculation since the effect would have been anti-dilutive.

The 1.50% Series B Convertible Senior Notes and 1.50% Series C Convertible Senior Notes did not have an effect on the calculation for the periods presented. See Note 12—Debt.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Drilling Fleet

9 Months Ended

Sep. 30, 2012

Drilling Fleet

Drilling Fleet

Note 11—Drilling Fleet

Expansion—Capital expenditures and other capital additions, including capitalized interest, for the nine months ended September 30, 2012 and 2011 were as follows (in millions):

	Nine months ended September 30,
	2012			2011
Construction work in progress, at beginning of period	$	1,360		$	1,450

Newbuild construction program
Transocean Ao Thai (a)	49			10
Deepwater Asgard (b)	40			—
Deepwater Invictus (b)	35			—
Transocean Honor (c)	35			83
Transocean Siam Driller (a)	32			72
Transocean Andaman (a)	31			72
Deepwater Champion (d)	—			76
Other construction projects and capital additions	424			320
Total capital expenditures	646			633
Changes in accrued capital expenditures	(10		)	11

Property and equipment placed into service
Transocean Honor (c)	(262		)	—
Deepwater Champion (d)	—			(881		)
Other property and equipment	(413		)	(348		)
Construction work in progress, at end of period	$	1,321		$	865

(a) Transocean Siam Driller, Transocean Andaman and Transocean Ao Thai, three Keppel FELS Super B class design High-Specification Jackups, under construction at Keppel FELS’ yard in Singapore, are expected to commence operations in the first quarter of 2013, the second quarter of 2013 and the fourth quarter of 2013, respectively.

(b) Deepwater Asgard and Deepwater Invictus, two Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to be ready to commence operations in the second quarter of 2014.

(d) Deepwater Champion, an Ultra-Deepwater drillship, commenced operations in May 2011.

In September 2012, we entered into shipyard contracts for the construction of four newbuild Ultra-Deepwater drillships at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, which are expected to commence operations in the fourth quarter of 2015, the second quarter of 2016, the fourth quarter of 2016 and the first quarter of 2017, respectively. See Note 15—Commitments and Contingencies.

Dispositions—During the nine months ended September 30, 2012, we committed to a plan to sell 46 Standard Jackups and a swamp barge, reflecting our decision to discontinue operations in the Standard Jackup and swamp barge market sectors (see Note 9—Discontinued Operations). In addition, during the nine months ended September 30, 2012, we completed the sales of the Deepwater Floaters Discoverer 534 and Jim Cunningham. In connection with the disposal of these assets, in the three and nine months ended September 30, 2012, we received aggregate net cash proceeds of $178 million, and we recognized a net gain on disposal of these drilling units and related equipment in the amount of $51 million ($48 million or $0.13 per diluted share from continuing operations net of tax). In the three and nine months ended September 30, 2012, we recognized losses on disposal of unrelated assets in the amount of $1 million and $11 million, respectively.

During the nine months ended September 30, 2011, in connection with our efforts to dispose of non-strategic assets, we sold the High-Specification Jackup Trident 20, reflecting our decision to discontinue operations in the Caspian Sea (see Note 9—Discontinued Operations). In the three and nine months ended September 30, 2011, we recognized a net loss on disposal of unrelated assets in the amounts of $1 million and $3 million, respectively.

Unconsolidated affiliates—In July 2011, we completed the sale of our 50 percent ownership interest in Overseas Drilling Limited, a Cayman Islands company, which owns the drillship Joides Resolution, which was adapted for scientific research. In the three and nine months ended September 30, 2011, we received net cash proceeds of $22 million and recognized a net gain of $13 million ($0.04 per diluted share from continuing operations), recorded in other, net, which had no tax effect.

- 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.

+ References+ Details

Debt

9 Months Ended

Sep. 30, 2012

Debt

Debt

Note 12—Debt

Debt, net of unamortized discounts, premiums and fair value adjustments, was comprised of the following (in millions):

	September 30, 2012						December 31, 2011
	Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total		Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total
5% Notes due February 2013	$	251	$	—	$	251	$	253	$	—	$	253
5.25% Senior Notes due March 2013 (a)	503		—		503		507		—		507
TPDI Credit Facilities due March 2015	420		—		420		—		473		473
4.95% Senior Notes due November 2015 (a)	1,120		—		1,120		1,120		—		1,120
Aker Revolving Credit and Term Loan Facility due December 2015	—		—		—		594		—		594
Callable Bonds due February 2016	274		—		274		267		—		267
5.05% Senior Notes due December 2016 (a)	999		—		999		999		—		999
2.5% Senior Notes due October 2017 (a)	748		—		748		—		—		—
ADDCL Credit Facilities due December 2017	—		205		205		—		217		217
Eksportfinans Loans due January 2018	774		—		774		884		—		884
6.00% Senior Notes due March 2018 (a)	998		—		998		998		—		998
7.375% Senior Notes due April 2018 (a)	247		—		247		247		—		247
TPDI Notes due October 2019	—		—		—		—		148		148
6.50% Senior Notes due November 2020 (a)	899		—		899		899		—		899
6.375% Senior Notes due December 2021 (a)	1,199		—		1,199		1,199		—		1,199
3.8% Senior Notes due October 2022 (a)	745		—		745		—		—		—
7.45% Notes due April 2027 (a)	97		—		97		97		—		97
8% Debentures due April 2027 (a)	57		—		57		57		—		57
7% Notes due June 2028	311		—		311		311		—		311
Capital lease contract due August 2029	664		—		664		676		—		676
7.5% Notes due April 2031 (a)	598		—		598		598		—		598
1.50% Series B Convertible Senior Notes due December 2037 (a)	—		—		—		30		—		30
1.50% Series C Convertible Senior Notes due December 2037 (a)	1,709		—		1,709		1,663		—		1,663
6.80% Senior Notes due March 2038 (a)	999		—		999		999		—		999
7.35% Senior Notes due December 2041 (a)	300		—		300		300		—		300
Total debt	13,912		205		14,117		12,698		838		13,536
Less debt due within one year
5% Notes due February 2013	251		—		251		—		—		—
5.25% Senior Notes due March 2013 (a)	503		—		503		—		—		—
TPDI Credit Facilities due March 2015	70		—		70		—		70		70
Aker Revolving Credit and Term Loan Facility due December 2015	—		—		—		90		—		90
ADDCL Credit Facilities due November 2017	—		28		28		—		27		27
Eksportfinans Loans due January 2018	148		—		148		142		—		142
TPDI Notes due October 2019	—		—		—		—		148		148
Capital lease contract due August 2029	20		—		20		17		—		17
1.50% Series B Convertible Senior Notes due December 2037 (a)	—		—		—		30		—		30
1.50% Series C Convertible Senior Notes due December 2037 (a)	1,709		—		1,709		1,663		—		1,663
Total debt due within one year	2,701		28		2,729		1,942		245		2,187
Total long-term debt	$	11,211	$	177	$	11,388	$	10,756	$	593	$	11,349

(a) Transocean Inc., a 100 percent owned subsidiary of Transocean Ltd., is the issuer of the notes and debentures, which have been guaranteed by Transocean Ltd. Transocean Ltd. has also guaranteed borrowings under the Transocean Inc. Five-Year Revolving Credit Facility. Transocean Ltd. and Transocean Inc. are not subject to any significant restrictions on their ability to obtain funds from their consolidated subsidiaries by dividends, loans or return of capital distributions. See Note 19—Condensed Consolidating Financial Information.

Scheduled maturities—In preparing the scheduled maturities of our debt, we assume the noteholders will exercise their options to require us to repurchase the 1.50% Series C Convertible Senior Notes in December 2012. At September 30, 2012, the scheduled maturities of our debt were as follows (in millions):

	Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total
Twelve months ending September 30,
2013	$	2,710	$	28	$	2,738
2014	240		29		269
2015	451		31		482
2016	1,535		62		1,597
2017	1,175		36		1,211
Thereafter	7,788		19		7,807
Total debt, excluding unamortized discounts, premiums and fair value adjustments	13,899		205		14,104
Total unamortized discounts, premiums and fair value adjustments, net	13		—		13
Total debt	$	13,912	$	205	$	14,117

Five-Year Revolving Credit Facility—We have a $2.0 billion revolving credit facility established by the Credit Agreement dated November 1, 2011 (the “Five-Year Revolving Credit Facility”). We pay a facility fee on the daily unused amount of the underlying commitment, which ranges from 0.125 percent to 0.325 percent, based on the credit rating of our non-credit enhanced senior unsecured long-term debt (“Debt Rating”), and was 0.275 percent at September 30, 2012. At September 30, 2012, we had $24 million in letters of credit issued and outstanding, we had no borrowings outstanding, and we had $2.0 billion available borrowing capacity under the Five-Year Revolving Credit Facility.

TPDI Credit Facilities—We have a bank credit agreement, which establishes a $1.265 billion secured credit facility, comprised of a $1.0 billion senior term loan, a $190 million junior term loan and a $75 million revolving credit facility (collectively, the “TPDI Credit Facilities”), which was established to finance the construction of and is secured by Dhirubhai Deepwater KG1 and Dhirubhai Deepwater KG2. One of our other subsidiaries participates as a lender in the senior and junior term loans. At September 30, 2012, $840 million was outstanding under the TPDI Credit Facilities, of which $420 million was due to the other subsidiary and was eliminated in consolidation. On September 30, 2012, the weighted-average interest rate was 2.0 percent. See Note 13—Derivatives and Hedging and Note 16—Redeemable Noncontrolling Interest.

At September 30, 2012, we had an outstanding letter of credit in the amount of $60 million to satisfy our liquidity requirements under the TPDI Credit Facilities. Additionally, we are required to maintain certain cash balances in accounts restricted for the payment of the scheduled installments on the TPDI Credit Facilities. We had restricted cash investments of $23 million at September 30, 2012 and December 31, 2011.

Aker Revolving Credit and Term Loan Facility—We had a credit facility established by the Revolving Credit and Term Loan Facility Agreement dated February 21, 2011 (the “Aker Revolving Credit and Term Loan Facility”), comprised of a $500 million revolving credit facility (the “Aker Revolving Credit Facility”) and a $400 million term loan (the “Aker Term Loan”), which was secured by Transocean Spitsbergen and Transocean Barents and guaranteed by Transocean Ltd.

In the three and nine months ended September 30, 2012, we prepaid $173 million and $333 million of borrowings under the Aker Term Loan, and we recognized losses on retirement of debt in the amount of $1 million and $2 million, respectively. In September 2012, we cancelled the Aker Revolving Credit and Term Loan Facility.

Callable Bonds—Aker Drilling is the obligor on the FRN Aker Drilling ASA Senior Unsecured Callable Bond Issue 2011/2016 (the “FRN Callable Bonds”) and the 11% Aker Drilling ASA Senior Unsecured Callable Bond Issue 2011/2016 (the “11% Callable Bonds,” and together with the FRN Callable Bonds, the “Callable Bonds”), which are publicly traded on the Oslo Stock Exchange. At September 30, 2012, the total aggregate principal amounts of the FRN Callable Bonds and the 11% Callable Bonds were NOK 940 million and NOK 560 million, equivalent to $164 million and $98 million, respectively, using an exchange rate of NOK 5.73 to US $1.00. At September 30, 2012, the interest rate on the FRN Callable Bonds was 9.1 percent. See Note 13—Derivatives and Hedging.

2.5% Senior Notes and the 3.8% Senior Notes—In September 2012, we issued $750 million aggregate principal amount of 2.5% Senior Notes due October 2017 (the “2.5% Senior Notes”) and $750 million aggregate principal amount of 3.8% Senior Notes due October 2022 (the “3.8% Senior Notes,” and together with the 2.5% Senior Notes, the “2012 Senior Notes”). The interest rates for the notes are subject to adjustment from time to time upon a change to the credit rating for the notes assigned by Moody’s Investors Service or Standard & Poor’s Ratings Services. We are required to pay interest on the 2012 Senior Notes on April 15 and October 15 of each year, beginning April 15, 2013. We may redeem some or all of the 2012 Senior Notes at any time prior to maturity at a redemption price equal to 100 percent of the principal amount plus accrued and unpaid interest, if any, together with a make-whole premium unless, in the case of the 3.8% Senior Notes, such redemption occurs on or after July 15, 2022, in which case no such make-whole premium will apply. The indenture pursuant to which the 2012 Senior Notes were issued contains restrictions on creating liens, engaging in sale/leaseback transactions and engaging in merger, consolidation or reorganization transactions. At September 30, 2012, $750 million aggregate principal amount of the 2.5% Senior Notes and $750 million aggregate principal amount of the 3.8% Senior Notes were outstanding.

ADDCL Credit Facilities—ADDCL has a primary bank credit agreement, which establishes a senior secured credit facility (the “ADDCL Primary Loan Facility”) comprised of Tranche A and Tranche C for $215 million and $399 million, respectively, which was established to finance the construction of and is secured by Discoverer Luanda. Unaffiliated financial institutions provide the commitment for and borrowings under Tranche A, and one of our subsidiaries provides the commitment for Tranche C. At September 30, 2012, $177 million was outstanding under Tranche A at a weighted-average interest rate of 1.5 percent. At September 30, 2012, $399 million was outstanding under Tranche C, which was eliminated in consolidation.

Additionally, ADDCL has a secondary bank credit agreement, which establishes a $90 million credit facility (the “ADDCL Secondary Loan Facility” and together with the ADDCL Primary Loan Facility, the “ADDCL Credit Facilities”), for which one of our subsidiaries provides 65 percent of the total commitment. At September 30, 2012, $80 million was outstanding under the ADDCL Secondary Loan Facility, of which $52 million was due to one of our subsidiaries and has been eliminated in consolidation. On September 30, 2012, the weighted-average interest rate was 3.5 percent.

ADDCL is required to maintain certain cash balances in accounts restricted for the payment of the scheduled installments on the ADDCL Credit Facilities. ADDCL had restricted cash investments of $31 million and $16 million at September 30, 2012 and December 31, 2011, respectively.

Eksportfinans Loans—The Eksportfinans Loans require cash collateral to remain on deposit at a financial institution (the “Aker Restricted Cash Investments”) through expiration. The aggregate principal amount of the Aker Restricted Cash Investments was $778 million and $889 million at September 30, 2012 and December 31, 2011, respectively.

TPDI Notes—We previously issued promissory notes (the “TPDI Notes”), which had maturities through October 2019 and were payable to one of our subsidiaries and its former second shareholder, Quantum Pacific Management Limited (“Quantum”). On May 31, 2012, in connection with the exchange of Quantum’s interest in TPDI for our shares, the TPDI Notes payable to Quantum were extinguished and contributed as additional paid-in capital. See Note 16—Redeemable Noncontrolling Interest.

1.50% Series B and 1.50% Series C Convertible Senior Notes—Including amortization of the unamortized discount, the effective interest rates for the Series C Convertible Senior Notes was 5.28 percent. At September 30, 2012, the remaining period over which the discount will be amortized is less than one year. Interest expense, excluding amortization of debt issue costs, was as follows (in millions):

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Interest expense
Series B Convertible Senior Notes due 2037	$	—	$	21	$	—	$	61
Series C Convertible Senior Notes due 2037	22		21		65		62

The carrying amounts of the liability components of the outstanding Convertible Senior Notes were as follows (in millions):

	September 30, 2012							December 31, 2011
	Principal amount		Unamortized discount			Carrying amount		Principal amount		Unamortized discount			Carrying amount
Carrying amount of liability component
Series B Convertible Senior Notes due 2037	$	—	$	—		$	—	$	30	$	—		$	30
Series C Convertible Senior Notes due 2037	1,722		(13		)	1,709		1,722		(59		)	1,663

In February 2012, we redeemed the remaining $30 million of aggregate principal amount of our Series B Convertible Senior Notes for an aggregate cash payment of $30 million.

The carrying amounts of the equity components of the outstanding Convertible Senior Notes were as follows (in millions):

	September 30, 2012		December 31, 2011
Carrying amount of equity component
Series B Convertible Senior Notes due 2037	$	—	$	4
Series C Convertible Senior Notes due 2037	276		276

See Note 20—Subsequent Events.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Derivatives and Hedging

9 Months Ended

Sep. 30, 2012

Derivatives and Hedging

Derivatives and Hedging

Note 13—Derivatives and Hedging

Derivatives designated as hedging instruments—We have interest rate swaps, which are designated and have qualified as fair value hedges, to reduce our exposure to changes in the fair values of the 5% Notes due February 2013 and the 5.25% Senior Notes due March 2013. The interest rate swaps have aggregate notional amounts equal to the corresponding face values of the hedged instruments and have stated maturities that coincide with those of the hedged instruments. We have determined that the hedging relationships qualify for, and we have applied, the shortcut method of accounting, under which the interest rate swaps are considered to have no ineffectiveness and no ongoing assessment of effectiveness is required. Accordingly, changes in the fair value of the interest rate swaps recognized in interest expense offset changes in the fair value of the hedged fixed-rate notes. Through the stated maturities of the interest rate swaps, we receive semi-annual interest at a fixed rate equal to that of the underlying debt instrument and pay variable interest semi-annually at three-month London Interbank Offered Rate (“LIBOR”) plus a margin.

We previously entered into interest rate swaps, which were designated and qualified as fair value hedges, to reduce our exposure to changes in the fair values of the 4.95% Senior Notes due November 2015. In June 2012, we terminated these interest rate swaps and received an aggregate net cash payment of $23 million.

We have interest rate swaps, which have been designated and qualify as a cash flow hedge, to reduce the variability of cash interest payments associated with the variable rate borrowings under the TPDI Credit Facilities through December 31, 2014. The aggregate notional amount corresponds with the aggregate outstanding amount of the borrowings under the TPDI Credit Facilities.

We have cross-currency interest rate swaps, which have been designated and qualify as a cash flow hedge, to reduce the variability of cash interest payments and the final principal payment due at maturity in February 2016 associated with the changes in the U.S. dollar to Norwegian krone exchange rate. The aggregate notional amount corresponds with the aggregate outstanding amount of the 11% Callable Bonds. The swap agreements are subject to a security agreement assigning Transocean Spitsbergen and Transocean Barents as security for our obligations under the swap agreements.

At September 30, 2012, the aggregate notional amounts and the weighted average interest rates associated with our derivatives designated as hedging instruments were as follows (in millions, except weighted average interest rates):

	Pay					Receive
	Aggregate notional amount		Fixed or variable rate	Weighted average rate		Aggregate notional amount			Fixed or variable rate	Weighted average rate
Interest rate swaps, fair value hedges	$	750	variable	3.6	%	$	750		fixed	5.2	%
Interest rate swaps, cash flow hedges	$	403	fixed	2.4	%	$	403		variable	0.4	%
Cross-currency swaps, cash flow hedges	$	102	fixed	8.9	%	NOK		560	fixed	11.0	%

The effect on our condensed consolidated statements of operations resulting from derivatives designated as cash flow hedges was as follows (in millions):

		Three months ended September 30,						Nine months ended September 30,
	Statement of operations classification	2012			2011			2012			2011
Loss associated with effective portion	Interest expense, net of amounts capitalized	$	(1	)	$	(3	)	$	(4	)	$	(8	)
Gain associated with effective portion	Other, net	4			—			4			—

The balance sheet classification and aggregate carrying amount of our derivatives designated as hedging instruments, measured at fair value, including accrued interest, were as follows (in millions):

	Balance sheet classification	September 30, 2012		December 31, 2011
Interest rate swaps, fair value hedges	Other current assets	$	6	$	5
Interest rate swaps, fair value hedges	Other assets	—		31
Interest rate swaps, cash flow hedges	Other long-term liabilities	15		16
Cross-currency swaps, cash flow hedges	Other current assets	1		—
Cross-currency swaps, cash flow hedges	Other long-term liabilities	3		7

Derivatives not designated as hedging instruments—In connection with our acquisition of Aker Drilling, we assumed certain derivatives not designated as hedging instruments. In June 2012, we terminated the interest rate swaps not designated as hedging instruments and made an aggregate cash payment of $14 million.

Additionally, in August 2011, in connection with our acquisition of Aker Drilling, we entered into a forward exchange contract, which was not designated and did not qualify as a hedging instrument for accounting purposes, in order to offset the variability in the cash flows resulting from fluctuations in the U.S. dollar to Norwegian krone exchange rate. The forward exchange contract had aggregate notional amounts requiring us to pay $1.1 billion in exchange for receiving NOK 6.1 billion, representing an exchange rate of $1.00 to NOK 5.40. On September 28, 2011, we settled the full amount of the forward exchange contract and made a cash payment of $78 million.

The effect on our condensed consolidated statements of operations resulting from changes in the fair values of derivatives not designated as hedging instruments was as follows (in millions):

		Three months ended September 30,					Nine months ended September 30,
	Statement of operations classification	2012		2011			2012			2011
Loss associated with undesignated interest rate swaps	Interest expense, net of amounts capitalized	$	—	$	—		$	(1	)	$	—
Loss associated with undesignated forward exchange contract	Other, net	—		(78		)	—			(78		)

The balance sheet classification and aggregate carrying amount of our derivatives not designated as hedging instruments, measured at fair value, were as follows (in millions):

	Balance sheet classification	September 30, 2012		December 31, 2011
Interest rate swaps, undesignated	Other long-term liabilities	$	—	$	15

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4J

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4A

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4E

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4H

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 25

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 30

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 44

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 30

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4K

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(n))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 45

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 30

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1A

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 21: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 22: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4D

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959

+ Details

Postemployment Benefit Plans

9 Months Ended

Sep. 30, 2012

Postemployment Benefit Plans

Postemployment Benefit Plans

Note 14—Postemployment Benefit Plans

We have several defined benefit pension plans, both funded and unfunded, covering substantially all of our U.S. employees, including certain frozen plans, assumed in connection with our mergers, that cover certain current employees and certain former employees and directors of our predecessors (the “U.S. Plans”). We also have various defined benefit plans in the U.K., Norway, Nigeria, Egypt and Indonesia that cover our employees in those areas (the “Non-U.S. Plans”). Additionally, we offer several unfunded contributory and noncontributory other postretirement employee benefit plans covering substantially all of our U.S. employees (the “OPEB Plans”).

The components of net periodic benefit costs, before tax, and funding contributions for these plans were as follows (in millions):

	Three months ended September 30, 2012											Three months ended September 30, 2011
	U.S. Plans			Non-U.S. Plans			OPEB Plans		Total			U.S. Plans			Non-U.S. Plans			OPEB Plans			Total
Net periodic benefit costs
Service cost	$	13		$	7		$	1	$	21		$	10		$	4		$	—		$	14
Interest cost	15			4			1		20			15			5			1			21
Expected return on plan assets	(16		)	(4		)	—		(20		)	(15		)	(5		)	—			(20		)
Settlements and curtailments	—			19			—		19			1			—			—			1
Actuarial losses, net	11			1			—		12			5			2			—			7
Prior service cost, net	—			(1		)	—		(1		)	—			1			(1		)	—
Transition obligation, net	—			—			—		—			—			(1		)	—			(1		)
Net periodic benefit costs	$	23		$	26		$	2	$	51		$	16		$	6		$	—		$	22

Funding contributions	$	1		$	10		$	1	$	12		$	1		$	7		$	1		$	9

	Nine months ended September 30, 2012											Nine months ended September 30, 2011
	U.S. Plans			Non-U.S. Plans			OPEB Plans		Total			U.S. Plans			Non-U.S. Plans			OPEB Plans			Total
Net periodic benefit costs
Service cost	$	37		$	23		$	1	$	61		$	32		$	14		$	1		$	47
Interest cost	44			17			2		63			44			16			2			62
Expected return on plan assets	(47		)	(17		)	—		(64		)	(47		)	(17		)	—			(64		)
Settlements and curtailments	2			19			—		21			2			—			—			2
Actuarial losses, net	31			3			—		34			17			2			—			19
Prior service cost, net	(1		)	(1		)	—		(2		)	(1		)	1			(2		)	(2		)
Net periodic benefit costs	$	66		$	44		$	3	$	113		$	47		$	16		$	1		$	64

Funding contributions	$	104		$	27		$	3	$	134		$	69		$	20		$	4		$	93

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies

Commitments and Contingencies

Note 15—Commitments and Contingencies

Purchase obligations

At September 30, 2012, our purchase obligations, primarily related to our newbuilds, including the shipyard contracts for four Ultra-Deepwater drillships entered into in September 2012, were as follows (in millions):

	Purchase obligations
Twelve months ending September 30,
2013	$	632
2014	1,387
2015	224
2016	621
2017	617
Thereafter	—
Total	$	3,481

Macondo well incident

Overview—On April 22, 2010, the Ultra-Deepwater Floater Deepwater Horizon sank after a blowout of the Macondo well caused a fire and explosion on the rig. Eleven persons were declared dead and others were injured as a result of the incident. At the time of the explosion, Deepwater Horizon was located approximately 41 miles off the coast of Louisiana in Mississippi Canyon Block 252 and was contracted to BP America Production Co. (“BP”).

We are currently unable to estimate the full impact the Macondo well incident will have on us. We have recognized a liability for estimated loss contingencies that we believe are probable and for which a reasonable estimate can be made. This liability takes into account certain events related to the litigation and investigations arising out of the incident. There are loss contingencies related to the Macondo well incident that we believe are reasonably possible and for which we do not believe a reasonable estimate can be made. These contingencies could increase the liabilities we ultimately recognize. As of September 30, 2012 and December 31, 2011, the liability associated for estimated loss contingencies that we believe are probable and for which a reasonable estimate can be made was $1.9 billion and $1.2 billion, respectively, recorded in other current liabilities.

We have also recognized an asset associated with the portion of our estimated losses, primarily related to the personal injury and fatality claims of our crew and vendors, that we believe is recoverable from insurance. Although we have available policy limits that could result in additional amounts recoverable from insurance, recovery of such additional amounts is not probable and we are not currently able to estimate such amounts (see “—Insurance coverage”). Our estimates involve a significant amount of judgment. As a result of new information or future developments, we may adjust our estimated loss contingencies arising out of the Macondo well incident or our estimated recoveries from insurance, and the resulting losses could have a material adverse effect on our consolidated statement of financial position, results of operations and cash flows. In the three months ended September 30, 2012, we received $15 million of cash proceeds from insurance recoveries for losses related to the personal injury and fatality claims of our crew and vendors. Additionally, BP received $57 million of cash proceeds from insurance recoveries under our insurance program for losses that were covered under our contractual indemnity of BP (see “—Contractual indemnity”). The payments made to BP resulted in corresponding reductions of our insurance recoverable asset and contingent liability. As of September 30, 2012 and December 31, 2011, the insurance recoverable asset related to estimated losses primarily for additional personal injury and fatality claims of our crew and vendors that we believe are probable of recovery from insurance was $179 million and $233 million, respectively, recorded in other assets.

Many of the Macondo well related claims are pending in the U.S. District Court, Eastern District of Louisiana (the “MDL Court”). The first phase of a three-phase trial was originally scheduled to commence in March 2012. In March 2012, BP and the Plaintiff’s Steering Committee (the “PSC”) announced that they had agreed to a partial settlement related primarily to private party environmental and economic loss claims as well as response effort related claims (the “BP/PSC Settlement”). The BP/PSC Settlement agreement provides that (a) the BP/PSC Settlement is subject to court approvals, (b) to the extent permitted by law, BP will assign to the settlement class certain of BP’s claims, rights and recoveries against us for damages with protections such that the settlement class is barred from collecting any amounts from us unless it is finally determined that we cannot recover such amounts from BP, and (c) the settlement class releases all claims for compensatory damages against us but purports to retain claims for punitive damages against us.

In February 2012, prior to the announcement of the BP/PSC Settlement, BP proposed a settlement to us. Later that month, but before the announcement of the BP/PSC Settlement, we suggested a settlement of all claims of the plaintiffs represented by the PSC. The PSC responded with a settlement proposal. We have not made a counterproposal to either BP or the PSC after receiving their respective proposals, and we have not had settlement discussions with either BP or the PSC since the initial proposals. The settlement amounts proposed by both BP and the PSC were each far in excess of the amount contemplated by our settlement discussions with the U.S. Department of Justice (the “DOJ”), as described below. Both of these proposed amounts also far exceeded the amounts we had been willing to consider for a settlement with either BP or the PSC.

In May 2012, the MDL Court granted preliminary approval of the economic and property damage class settlement between BP and the PSC. After giving consideration to the BP/PSC Settlement, the MDL Court ordered that the first phase of the trial, at which liability will be determined, be rescheduled for February 2013. The MDL Court subsequently issued an order with a projected trial date of June 2013 for the second phase of the trial, which will address conduct related to stopping the release of hydrocarbons between April 22, 2010 and approximately September 19, 2010 and seek to determine the amount of oil actually released during the period. There can be no assurance as to the outcome of the trial, as to the timing of any phase of trial, that we will not enter into a settlement as to some or all of the matters related to the Macondo well incident, including those to be determined at a trial, or the timing or terms of any such settlement.

In April 2011, several defendants in the Macondo well litigation before the Multi-District Litigation Panel (the “MDL”) filed cross-claims or third-party claims against us and certain of our subsidiaries, and other defendants. BP filed a claim seeking contribution under the Oil Pollution Act of 1990 (“OPA”) and maritime law, subrogation and claimed breach of contract, unseaworthiness, negligence and gross negligence. BP also sought a declaration that it is not liable in contribution, indemnification, or otherwise to us. Anadarko Petroleum Corporation (“Anadarko”), which owned a 25 percent non-operating interest in the Macondo well, asserted claims of negligence, gross negligence, and willful misconduct and is seeking indemnity under state and maritime law and contribution under maritime and state law as well as OPA. MOEX Offshore 2007 LLC (“MOEX”), which owns a 10 percent non-operating interest in the Macondo well, filed claims of negligence under state and maritime law, gross negligence under state law, gross negligence and willful misconduct under maritime law and is seeking indemnity under state and maritime law and contribution under maritime law and OPA. Cameron International Corporation (“Cameron”), the manufacturer and designer of the blowout preventer, asserted multiple claims for contractual indemnity and declarations regarding contractual obligations under various contracts and quotes and is also seeking non-contractual indemnity and contribution under maritime law and OPA. As part of the BP/PSC Settlement, one or more of these claims against us and certain of our subsidiaries may be assigned to the PSC settlement class. Halliburton Company (“Halliburton”), which provided cementing and mud-logging services to the operator, filed a claim against us seeking contribution and indemnity under maritime law, contractual indemnity and alleging negligence and gross negligence. Additionally, certain other third parties filed claims against us for indemnity and contribution.

In April 2011, we filed cross-claims and counter-claims against BP, Halliburton, Cameron, Anadarko, MOEX, certain of these parties’ affiliates, the U.S. and certain other third parties. We seek indemnity, contribution (including contribution under OPA), and subrogation under OPA, and we have asserted claims for breach of warranty of workmanlike performance, strict liability for manufacturing and design defect, breach of express contract, and damages for the difference between the fair market value of Deepwater Horizon and the amount received from insurance proceeds. We are not pursuing arbitration on the key contractual issues with BP; instead, we are relying on the court to resolve the disputes. With regard to the U.S., we are not currently seeking recovery of monetary damages, but rather a declaration regarding relative fault and contribution via credit, setoff, or recoupment.

Notices of alleged non-compliance—The Department of the Interior’s Bureau of Safety and Environmental Enforcement issued four notices of alleged non-compliance with regulatory requirements to us on October 12, 2011. While we cannot predict or provide assurance as to the full outcome of these citations, they could result in the assessment of civil penalties. Our appeal is stayed by mutual agreement with the Department of Interior until a ruling is issued in the MDL.

Insurance coverage—At the time of the Macondo well incident, our excess liability insurance program offered aggregate insurance coverage of $950 million, excluding a $15 million deductible and a $50 million self-insured layer through our wholly owned captive insurance subsidiary. This excess liability insurance coverage consisted of a first and a second layer of $150 million each, a third and fourth layer of $200 million each and a fifth layer of $250 million. The first four excess layers have similar coverage and contractual terms, while the $250 million fifth layer is on a different policy form, which varies to some extent from the underlying coverage and contractual terms. Generally, we believe that the policy forms for all layers include coverage for personal injury and fatality claims of our crew and vendors, actual and compensatory damages, punitive damages and related legal defense costs and that the policy forms for the first four excess layers provide coverage for fines; however, we do not expect payments deemed to be criminal in nature to be covered by any of the layers.

In May 2010, we received notice from BP maintaining that it believes that it is entitled to additional insured status under our excess liability insurance program. Our insurers have also received notices from Anadarko and MOEX advising of their intent to preserve any rights they may have to our insurance policies as an additional insured under the drilling contract. In response, our wholly owned captive insurance subsidiary and our first four excess layer insurers filed declaratory judgment actions in the Houston Division of the U.S. District Court for the Southern District of Texas in May 2010 seeking a judgment declaring that they have limited additional insured obligations to BP, Anadarko and MOEX. We are parties to the declaratory judgment actions, which have been transferred to the MDL for discovery and other purposes in the MDL Court. On November 15, 2011, the MDL Court ruled that BP’s coverage rights are limited to the scope of our indemnification of BP in the drilling contract. A final judgment was entered against BP, Anadarko and MOEX, and BP has filed an appeal. Oral argument has been scheduled for December 2012. We believe that additional insured coverage for BP, Anadarko or MOEX under the $250 million fifth layer of our insurance program is also limited to the scope of our indemnification of BP under the drilling contract. While we cannot predict the outcome of the appeal, we do not expect it to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

Additionally, our first layer of excess insurers filed interpleader actions on June 17, 2011. The insurers contend that they face multiple, and potentially competing, claims to the relevant insurance proceeds. In these actions, the insurers effectively ask the court to manage disbursement of the funds to the alleged claimants, as appropriate, and discharge the insurers of any additional liability. The parties to the interpleader actions have executed a protocol agreement to facilitate the reimbursement and funding of settlements of personal injury and fatality claims of our crew and vendors using insurance funds and claims have been submitted to the court for review. Pending the court’s determination of the parties’ claims, and with the court’s approval, the insurers have made interim reimbursement payments to the parties.

Our second layer of excess insurers filed an interpleader action on July 31, 2012. Like the interpleader actions filed by the first layer of excess insurers, the second layer of excess insurers contend that they face multiple, and potentially competing, claims to the relevant insurance proceeds. In this action, the insurers effectively ask the court to manage disbursement of the funds to the alleged claimants, as appropriate, and discharge the insurers of any additional liability. The parties have expressed a desire to enter into another agreement modeled on the first excess layer protocol agreement. A draft agreement is currently under review.

Litigation—As of September 30, 2012, 374 actions or claims were pending against us, along with other unaffiliated defendants, in state and federal courts. Additionally, government agencies have initiated investigations into the Macondo well incident. We have categorized below the nature of the legal actions or claims. We are evaluating all claims and intend to vigorously defend any claims and pursue any and all defenses available. In addition, we believe we are entitled to contractual defense and indemnity for all wrongful death and personal injury claims made by non-employees and third-party subcontractors’ employees as well as all liabilities for pollution or contamination, other than for pollution or contamination originating on or above the surface of the water. See “—Contractual indemnity.”

Wrongful death and personal injury—As of September 30, 2012, we have been named, along with other unaffiliated defendants, in nine complaints that were pending in state and federal courts in Louisiana and Texas involving multiple plaintiffs that allege wrongful death and other personal injuries arising out of the Macondo well incident. Per the order of the MDL, these claims have been centralized for discovery purposes in the MDL Court. The complaints generally allege negligence and seek awards of unspecified economic damages and punitive damages. BP, MI-SWACO, Weatherford Ltd. and Cameron and certain of their affiliates, have, based on contractual arrangements, also made indemnity demands upon us with respect to personal injury and wrongful death claims asserted by our employees or representatives of our employees against these entities. See “—Contractual indemnity.”

Economic loss—As of September 30, 2012, we and certain of our subsidiaries were named, along with other unaffiliated defendants, in 155 pending individual complaints as well as 179 putative class-action complaints that were pending in the federal and state courts in Louisiana, Texas, Mississippi, Alabama, Georgia, Kentucky, South Carolina, Tennessee, Florida and possibly other courts. The complaints generally allege, among other things, potential economic losses as a result of environmental pollution arising out of the Macondo well incident and are based primarily on the OPA and state OPA analogues. The plaintiffs are generally seeking awards of unspecified economic, compensatory and punitive damages, as well as injunctive relief. These actions have been transferred to the MDL. See “—Contractual indemnity.”

Federal securities claims—A federal securities class action is currently pending in the U.S. District Court, Southern District of New York, naming us and former chief executive officers of Transocean Ltd. and one of our acquired companies as defendants. In the action, a former shareholder of the acquired company alleges that the joint proxy statement related to our shareholder meeting in connection with our merger with the acquired company violated Section 14(a) of the Exchange Act of 1934 (the “Exchange Act”), Rule 14a-9 promulgated thereunder and Section 20(a) of the Exchange Act. The plaintiff claims that the acquired company’s shareholders received inadequate consideration for their shares as a result of the alleged violations and seeks compensatory and rescissory damages and attorneys’ fees. In addition, we are obligated to pay the defense fees and costs for the individual defendants, which may be covered by our directors’ and officers’ liability insurance, subject to a deductible. We and the individual defendants have filed a motion to dismiss the action on the ground that the plaintiff lacks standing to assert the claims alleged. See Note 20—Subsequent Events.

Other federal statutes—Several of the claimants have made assertions under the statutes, including the Clean Water Act (the “CWA”), the Endangered Species Act, the Migratory Bird Treaty Act, the Clean Air Act, the Comprehensive Environmental Response Compensation and Liability Act and the Emergency Planning and Community Right-to-Know Act.

Shareholder derivative claims—In June 2010, two shareholder derivative suits were filed by our shareholders naming us as a nominal defendant and certain of our current and former officers and directors as defendants in state district court in Texas. These cases allege breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement and waste of corporate assets in connection with the Macondo well incident. The plaintiffs are generally seeking to recover, on behalf of us, damages to the corporation and disgorgement of all profits, benefits, and other compensation from the individual defendants. Any recovery of the damages or disgorgement by the plaintiffs in these actions would be paid to us. If the plaintiffs prevail, we could be required to pay plaintiffs’ attorneys’ fees. In addition, we are obligated to pay the defense fees and costs for the individual defendants, which may be covered by our directors’ and officers’ liability insurance, subject to a deductible. The two actions have been consolidated before a single judge. The defendants have filed a motion to dismiss the complaint on the ground that if the actions are to proceed they must be maintained in the courts of Switzerland and on the ground that the plaintiffs lack standing to assert the claims alleged.

U.S. Department of Justice claims—On December 15, 2010, the DOJ filed a civil lawsuit against us and other unaffiliated defendants. The complaint alleges violations under OPA and the CWA, including claims for per barrel civil penalties of up to $1,100 per barrel or up to $4,300 per barrel if gross negligence or willful misconduct is established, and the DOJ reserved its rights to amend the complaint to add new claims and defendants. The U.S. government has estimated that up to 4.1 million barrels of oil were discharged and subject to penalties. The complaint asserts that all defendants named are jointly and severally liable for all removal costs and damages resulting from the Macondo well incident. On December 6, 2011, the DOJ filed a motion for partial summary judgment seeking a ruling that we were jointly and severely liable under OPA, and liable for civil penalties under the CWA, for all of the discharges from the Macondo well on the theory that discharges not only came from the well but also from the blowout preventer and riser, appurtenances of Deepwater Horizon.

On January 9, 2012, we filed our opposition to the motion and filed a cross-motion for partial summary judgment seeking a ruling that we are not liable for the subsurface discharge of hydrocarbons. On February 22, 2012, the MDL Court ruled that we are not liable as a responsible party for damages under OPA with respect to the below surface discharges from the Macondo well. The court also ruled that the below surface discharge was discharged from the well facility, and not from the Deepwater Horizon vessel, within the meaning of the CWA, and that we therefore are not liable for such discharges as an owner of the vessel under the CWA. However, the court ruled that the issue of whether we could be held liable for such discharge under the CWA as an “operator” of the well facility could not be resolved on summary judgment. The court did not determine whether we could be liable for removal costs under OPA, or the extent of such removal costs. On August 27, 2012, Anadarko filed a notice of appeal seeking to appeal to the Fifth Circuit Court of Appeals that portion of the MDL Court’s February 22, 2012 ruling concerning liability under the CWA. On September 18, 2012, BP and the U.S. also filed notices of appeal seeking to appeal to the Fifth Circuit Court of Appeals the MDL Court’s February 22, 2012 ruling without limiting the notice of appeal to the CWA aspects of the ruling. Our response to these appeals is not yet due.

In addition to the civil complaint, the DOJ served us with civil investigative demands on December 8, 2010. These demands were part of an investigation by the DOJ to determine if we made false claims, or false statements in support of claims, in connection with the operator’s acquisition of the leasehold interest in the Mississippi Canyon Block 252, Gulf of Mexico and drilling operations on Deepwater Horizon.

The DOJ is also conducting a criminal investigation into the Macondo well incident. On March 7, 2011, the DOJ announced the formation of a new task force to lead the criminal investigation. The task force is investigating possible violations by us and certain unaffiliated parties of the CWA, the Migratory Bird Treaty Act, the Refuse Act, the Endangered Species Act, and the Seaman’s Manslaughter Act, among other federal statutes, and possible criminal liabilities including fines under those statutes and under the Alternative Fines Act. Under the Alternatives Fines Act, a corporate defendant convicted of a criminal offense may be subject to a fine in the amount of twice the gross pecuniary loss suffered by third parties as a result of the offense. If we are charged with or convicted of certain criminal offenses, we may be subject to suspension or debarment as a contractor or subcontractor on certain government contracts, including leases.

We have had discussions with the DOJ seeking to resolve certain civil and criminal claims of the U.S. related to the Macondo well incident for a settlement of $1.5 billion, payable over a period of years. We and the DOJ have been unable to come to an agreement on certain terms of any such settlement, including whether such settlement would include or exclude claims under the Natural Resource Damage Assessment Process under the OPA, the time period for payment, and the factual basis of a plea. If we are able to enter into a settlement that includes such payment terms, we would not expect to recognize an additional loss as a result of such settlement beyond the previously recognized amounts. There can be no assurance that we and the DOJ will enter into agreements on the terms described or at all, nor any assurance regarding the timing of any such agreements, the effect of such agreements on other claims arising out of the Macondo well incident or that any court approvals required as conditions of such agreements will be obtained.

State and other government claims—In June 2010, the Louisiana Department of Environmental Quality (the “LDEQ”) issued a consolidated compliance order and notice of potential penalty to us and certain of our subsidiaries asking us to eliminate and remediate discharges of oil and other pollutants into waters and property located in the State of Louisiana, and to submit a plan and report in response to the order. In October 2010, the LDEQ rescinded its enforcement actions against us and our subsidiaries but reserved its rights to seek civil penalties for future violations of the Louisiana Environmental Quality Act.

In September 2010, the State of Louisiana filed a declaratory judgment seeking to designate us as a responsible party under OPA and the Louisiana Oil Spill Prevention and Response Act for the discharges emanating from the Macondo well.

Additionally, suits have been filed by the State of Alabama and the cities of Greenville, Evergreen, Georgiana and McKenzie, Alabama in the U.S. District Court, Middle District of Alabama; the Mexican States of Veracruz, Quintana Roo and Tamaulipas in the U.S. District Court, Western District of Texas; and the City of Panama City Beach, Florida in the U.S. District Court, Northern District of Florida. Suits were also filed by the City of New Orleans, by and on behalf of multiple Parishes, and by or on behalf of the Town of Grand Isle, Grand Isle Independent Levee District, the Town of Jean Lafitte, the Lafitte Area Independent Levee District, the City of Gretna, the City of Westwego, and the City of Harahan in the MDL Court. Additional suits were filed by or on behalf of other Parishes in the respective Parish courts and were removed to federal court. A local government master complaint also was filed in which cities, municipalities, and other local government entities can and have joined. Generally, these governmental entities allege economic losses under OPA and other statutory environmental state claims and also assert various common law state claims. The claims have been centralized in the MDL. The city of Panama City Beach’s claim was voluntarily dismissed.

On August 26, 2011, the MDL Court ruled on the motion to dismiss certain economic loss claims. The court ruled that state law, both statutory and common law, is preempted by maritime law, notwithstanding OPA’s savings provisions. Accordingly, all claims brought under state law were dismissed. Secondly, general maritime law claims that do not allege physical damage to a proprietary interest were dismissed, unless the claim falls into the commercial fisherman exception. The court ruled that OPA claims for economic loss do not require physical damage to a proprietary interest. Third, the MDL Court ruled that presentment under OPA is a mandatory condition precedent to filing suit against a responsible party. Finally, the MDL Court ruled that claims for punitive damages may be available under general maritime law in claims against responsible parties and non-responsible parties. Certain Louisiana parishes have appealed portions of this ruling. The parties have completed appellate briefing.

The Mexican States’ OPA claims were dismissed for failure to demonstrate that recovery under OPA was authorized by treaty or executive agreement. However, the Court preserved some of the Mexican States’ negligence and gross negligence claims, but only to the extent there has been a physical injury to a proprietary interest. As such, the ruling as to the Mexican States is not yet final and not subject to appeal at this time.

By letter dated May 5, 2010, the Attorneys General of the five Gulf Coast states of Alabama, Florida, Louisiana, Mississippi and Texas informed us that they intend to seek recovery of pollution clean-up costs and related damages arising from the Macondo well incident. In addition, by letter dated June 21, 2010, the Attorneys General of the 11 Atlantic Coast states of Connecticut, Delaware, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New York, North Carolina, Rhode Island and South Carolina informed us that their states have not sustained any damage from the Macondo well incident but they would like assurances that we will be responsible financially if damages are sustained. We responded to each letter from the Attorneys General and indicated that we intend to fulfill our obligations as a responsible party for any discharge of oil from Deepwater Horizon on or above the surface of the water, and we assume that the operator will similarly fulfill its obligations under OPA for discharges from the undersea well.

Wreck removal—By letter dated December 6, 2010, the U.S. Coast Guard requested us to formulate and submit a comprehensive oil removal plan to remove any diesel fuel contained in the sponsons and fuel tanks that can be recovered from Deepwater Horizon. We have conducted a survey of the rig wreckage and have confirmed that no diesel fuel remains on the rig. We have insurance coverage for wreck removal for up to 25 percent of Deepwater Horizon’s insured value, or $140 million, with any excess wreck removal liability generally covered to the extent of our remaining excess liability limits. The U.S. Coast Guard has not requested that we remove the rig wreckage from the sea floor.

Contractual indemnity—Under our drilling contract for Deepwater Horizon, the operator has agreed, among other things, to assume full responsibility for and defend, release and indemnify us from any loss, expense, claim, fine, penalty or liability for pollution or contamination, including control and removal thereof, arising out of or connected with operations under the contract other than for pollution or contamination originating on or above the surface of the water from hydrocarbons or other specified substances within the control and possession of the contractor, as to which we agreed to assume responsibility and protect, release and indemnify the operator. Although we do not believe it is applicable to the Macondo well incident, we also agreed to indemnify and defend the operator up to a limit of $15 million for claims for loss or damage to third parties arising from pollution caused by the rig while it is off the drilling location, while the rig is underway or during drive off or drift off of the rig from the drilling location. The operator has also agreed, among other things, (1) to defend, release and indemnify us against loss or damage to the reservoir, and loss of property rights to oil, gas and minerals below the surface of the earth and (2) to defend, release and indemnify us and bear the cost of bringing the well under control in the event of a blowout or other loss of control. We agreed to defend, release and indemnify the operator for personal injury and death of our employees, invitees and the employees of our subcontractors while the operator agreed to defend, release and indemnify us for personal injury and death of its employees, invitees and the employees of its other subcontractors, other than us. We have also agreed to defend, release and indemnify the operator for damages to the rig and equipment, including salvage or removal costs.

Although we believe we are entitled to contractual defense and indemnity, given the potential amounts involved in connection with the Macondo well incident, the operator has sought to avoid its indemnification obligations. In particular, the operator, in response to our request for indemnification, has generally reserved all of its rights and stated that it could not at this time conclude that it is obligated to indemnify us. In doing so, the operator has asserted that the facts are not sufficiently developed to determine who is responsible and has cited a variety of possible legal theories based upon the contract and facts still to be developed. We believe this reservation of rights is without justification and that the operator is required to honor its indemnification obligations contained in our contract and described above.

In April 2011, BP filed a claim seeking a declaration that it is not liable to us in contribution, indemnification, or otherwise. On November 1, 2011, we filed a motion for partial summary judgment, seeking enforcement of the indemnity obligations for pollution and civil fines and penalties contained in the drilling contract with BP. On January 26, 2012, the court ruled that the drilling contract requires BP to indemnify us for compensatory damages asserted by third parties against us related to pollution that did not originate on or above the surface of the water, even if the claim is the result of our strict liability, negligence, or gross negligence. The court also held that BP does not owe us indemnity to the extent that we are held liable for civil penalties under the CWA or for punitive damages. The court deferred ruling on BP’s argument that we breached the drilling contract or materially increased BP’s risk or prejudiced its rights so as to vitiate BP’s indemnity obligations. Our motion for partial summary judgment and the court’s ruling did not address the issue of contractual indemnity for criminal fines and penalties. The law generally considers contractual indemnity for criminal fines and penalties to be against public policy.

Other legal proceedings

Brazil Frade field incident—On or about November 7, 2011, oil was released from fissures in the ocean floor in the vicinity of a development well being drilled by Chevron off the coast of Rio de Janeiro in the Frade field with Sedco 706. The release was ultimately controlled, the well was plugged, and the released oil is being contained by Chevron.

On or about December 13, 2011, a federal prosecutor in the town of Campos in Rio de Janeiro State filed a civil public action against Chevron and us seeking BRL 20.0 billion, equivalent to approximately $10.0 billion, and seeking a preliminary and permanent injunction preventing Chevron and us from operating in Brazil. The prosecutor amended the requested injunction on December 15, 2011, to seek to prevent Chevron and us from conducting extraction or transportation activities in Brazil and to seek to require Chevron to stop the release and remediate its effects. On January 11, 2012, a judge of the federal court in Campos issued an order finding that the case should be transferred to the federal court in Rio de Janeiro. The prosecutor has appealed this jurisdictional decision and that appeal remains pending. On February 24, 2012, the court in Rio de Janeiro issued an order denying the federal prosecutor’s request for a preliminary injunction. The prosecutor further appealed this decision, and a three-judge panel heard the appeal on May 8, 2012. In July 2012, the appellate court granted the request for preliminary injunction. On September 22, 2012, the federal court in Rio de Janeiro served us with the preliminary injunction. The terms of this injunction required us to cease conducting extraction or transportation activities in Brazil with 30 days from the date of service. On September 28, 2012, the Brazilian Superior Court of Justice partially suspended this preliminary injunction. As a result of this suspension, the preliminary injunction will only apply to our operations in the Campo de Frade field, and we may continue to operate in all other offshore oil and gas fields in Brazil. The lawsuit will continue in the trial court, and there remains a risk that the preliminary injunction could be reinstated, or that at the conclusion of the case Brazilian authorities could permanently enjoin us from further operations in Brazil. If either or both of these events occur, it could have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. We continue to vigorously pursue the substantive merits of the case.

On December 21, 2011, a federal police marshal investigating the release filed a report with the federal court in Rio de Janeiro State recommending the indictment of Chevron, us, and 17 individuals, five of whom are our employees. The report recommended indictment on four counts, three alleging environmental offenses and one alleging false statements by Chevron in connection with its cleanup efforts. On March 21, 2012, the Campos prosecutor recommended indictments against the two companies and the 17 individuals. The prosecutor requested that the defendants be enjoined from disposing of property and that bail be set at BRL 10 million for the companies and BRL 1 million for the individuals. Subsequently, the federal court in Campos ruled that it does not have jurisdiction over the matter, and the file was transferred to the court in Rio de Janeiro. On or about June 15, 2012, the Rio de Janeiro court amended the travel order to state that passports could be returned to the individuals and that the individuals could travel with prior notice to the court. The indictments must be approved by a court of competent jurisdiction to become effective, and the criminal judge can accept, reject or modify the charges. The court has not yet approved the indictments.

The drilling services and charter contracts between Chevron and us provide, among other things, for Chevron to indemnify and defend us for claims based on pollution or contamination originating from below the surface of the water, including claims for control or removal or property loss or damage, including but not limited to third-party claims and liabilities, with an excludable amount of $250,000 per occurrence if the claim arises from our negligence. We have submitted a claim for indemnity and defense to Chevron under these contracts. Chevron responded that our request was premature, and requested that we confirm our intent to indemnify and defend Chevron regarding alleged violations of safety regulations aboard Sedco 706 that have resulted in the issuance of notices of infractions and any other claims or liabilities that may fall within our legal obligations. By letter dated September 6, 2012, Chevron agreed to indemnify us for all claims and liabilities resulting in judgments, awards or other monetary assessments of a strictly compensatory nature for alleged damages arising from pollution or contamination that originated below the surface of the water in connection with the incident. Chevron has also agreed to assume our defense in the criminal and civil lawsuits. We have yet to receive payment from Chevron. Discussions between Chevron and us regarding the parameters of Chevron’s agreement are ongoing.

On March 15, 2012, Chevron publicly announced that it had identified a new sheen in Frade field whose source was determined to be seepage from an 800-meter fissure 3 kilometers away from the location of the November incident. Chevron and the Brazilian National Agency of Petroleum have publicly stated that, while further studies are being conducted, the new seepage, which was estimated by Chevron, at the time, to be five liters, is now believed to be unrelated to the November incident.

On March 27, 2012, the union of oil industry workers in Brazil, Federacao Unica dos Petroleiros (“FUP”), filed a civil lawsuit in federal court in Rio de Janeiro against Chevron and us alleging a number of claims, including negligence on our part, and seeking a permanent injunction enjoining our operations in Brazil. The lawsuit sought unspecified damages. On or about April 16, 2012, the court issued an order transferring this case to the same court in Rio de Janeiro in which the initial civil public action is pending. On or about May 1, 2012, the Rio de Janeiro court dismissed this lawsuit, without prejudice, as duplicative of the other civil lawsuits. The FUP has appealed this dismissal.

On or about April 3, 2012, the same federal prosecutor who filed the original civil public action and the criminal indictments filed a new civil lawsuit against Chevron and us in federal court in Campos. The lawsuit alleges the new seepage discovered in March 2012 is related to the November 2011 incident and release. The lawsuit seeks an additional BRL 20.0 billion in damages, equivalent to approximately $10.0 billion. We have not been served in this matter.

We intend to defend ourselves vigorously against any claims that are brought based on the incident. While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect it to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

Asbestos litigation—In 2004, several of our subsidiaries were named, along with numerous other unaffiliated defendants, in 21 complaints filed on behalf of 769 plaintiffs in the Circuit Courts of the State of Mississippi and which claimed injuries arising out of exposure to asbestos allegedly contained in drilling mud during these plaintiffs’ employment in drilling activities between 1965 and 1986. Each individual plaintiff was subsequently required to file a separate lawsuit, and the original 21 multi-plaintiff complaints were then dismissed by the Circuit Courts. We have or may have an indirect interest in a total of 26 cases. The complaints generally allege that the defendants used or manufactured asbestos-containing drilling mud additives for use in connection with drilling operations and have included allegations of negligence, products liability, strict liability and claims allowed under the Jones Act and general maritime law. The plaintiffs generally seek awards of unspecified compensatory and punitive damages. In each of these cases, the complaints have named other unaffiliated defendant companies, including companies that allegedly manufactured the drilling-related products that contained asbestos. All of these cases are being governed for discovery and trial setting by a single Case Management Order entered by a Special Master appointed by the court to reside over all the cases, and of the 14 cases in which we are a named defendant, only one has been scheduled for trial and pre-trial discovery, which will take place in 2013. The preliminary information available on these claims is not sufficient to determine if there is an identifiable period for alleged exposure to asbestos, whether any asbestos exposure in fact occurred, the vessels potentially involved in the claims, or the basis on which the plaintiffs would support claims that their injuries were related to exposure to asbestos. However, the initial evidence available would suggest that we would have significant defenses to liability and damages. None of our companies have manufactured or distributed drilling mud or additives for same, and the handling of such additives by one of our employees would be a relatively infrequent occurrence that likely would have involved a non-asbestos product. In 2011, the Special Master issued a ruling that a Jones Act employer defendant, such as us, cannot be sued for punitive damages, and this ruling has now been obtained in three of our 14 cases. To date, seven of the 769 cases have gone to trial against defendants who allegedly manufactured or distributed drilling mud additives. None of these cases have involved an individual Jones Act employer, and we have not been a defendant in any of these cases. Two of the cases resulted in defense verdicts, and one case ended with a hung jury. Four cases resulted in verdicts for the plaintiff. Because the jury awarded punitive damages, two of these cases resulted in a substantial verdict in favor of the plaintiff; however, both of these verdicts have since been vacated by the trial court. The first plaintiff verdict was vacated on the basis that the plaintiff failed to meet its burden of proof. While the court’s decision is consistent with our general evaluation of the strength of these cases, it is currently being reviewed on appeal. The second plaintiff verdict was vacated because the presiding judge was removed from hearing any asbestos cases due to a conflict of interest, but when this case ultimately went to trial earlier this year, it resulted in a defense verdict. The two remaining plaintiff verdicts are under appeal by the defendants. We intend to defend these lawsuits vigorously, although there can be no assurance as to the ultimate outcome. We historically have maintained broad liability insurance, although we are not certain whether insurance will cover the liabilities, if any, arising out of these claims. Based on our evaluation of the exposure to date, we do not expect the liability, if any, resulting from these claims to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

One of our subsidiaries was involved in lawsuits arising out of the subsidiary’s involvement in the design, construction and refurbishment of major industrial complexes. The operating assets of the subsidiary were sold and its operations discontinued in 1989, and the subsidiary has no remaining assets other than the insurance policies involved in its litigation, with its insurers and, either directly or indirectly as the beneficiary of a qualified settlement fund, funding from settlements with insurers, assigned rights from insurers and coverage-in-place settlement agreements with insurers, and funds received from the commutation of certain insurance policies. The subsidiary has been named as a defendant, along with numerous other companies, in lawsuits alleging bodily injury or personal injury as a result of exposure to asbestos. As of September 30, 2012, the subsidiary was a defendant in approximately 895 lawsuits, some of which include multiple plaintiffs, and we estimate that there are approximately 1,977 plaintiffs in these lawsuits. For many of these lawsuits, we have not been provided with sufficient information from the plaintiffs to determine whether all or some of the plaintiffs have claims against the subsidiary, the basis of any such claims, or the nature of their alleged injuries. The first of the asbestos-related lawsuits was filed against the subsidiary in 1990. Through September 30, 2012, the costs incurred to resolve claims, including both defense fees and expenses and settlement costs, have not been material, all known deductibles have been satisfied or are inapplicable, and the subsidiary’s defense fees and expenses and settlement costs have been met by insurance made available to the subsidiary. The subsidiary continues to be named as a defendant in additional lawsuits, and we cannot predict the number of additional cases in which it may be named a defendant nor can we predict the potential costs to resolve such additional cases or to resolve the pending cases. However, the subsidiary has in excess of $1.0 billion in insurance limits potentially available to the subsidiary. Although not all of the policies may be fully available due to the insolvency of certain insurers, we believe that the subsidiary will have sufficient funding from settlements and claims payments from insurers, assigned rights from insurers and coverage-in-place settlement agreements with insurers to respond to these claims. While we cannot predict or provide assurance as to the final outcome of these matters, we do not believe that the current value of the claims where we have been identified will have a material impact on our consolidated statement of financial position, results of operations or cash flows.

Rio de Janeiro tax assessment—In the third quarter of 2006, we received tax assessments of BRL 376 million, equivalent to approximately $185 million from the state tax authorities of Rio de Janeiro in Brazil against one of our Brazilian subsidiaries for taxes on equipment imported into the state in connection with our operations. The assessments resulted from a preliminary finding by these authorities that our subsidiary’s record keeping practices were deficient. We currently believe that the substantial majority of these assessments are without merit. We filed an initial response with the Rio de Janeiro tax authorities on September 9, 2006 refuting these additional tax assessments. In September 2007, we received confirmation from the state tax authorities that they believe the additional tax assessments are valid, and as a result, we filed an appeal on September 27, 2007 to the state Taxpayer’s Council contesting these assessments. While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect it to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

Brazilian import license assessment—In the fourth quarter of 2010, one of our Brazilian subsidiaries received an assessment from the Brazilian federal tax authorities in Rio de Janeiro of BRL 480 million, equivalent to approximately $236 million, including interest and penalties, based upon the alleged failure to timely apply for import licenses for certain equipment and for allegedly providing improper information on import license applications. We believe that a substantial majority of the assessment is without merit and are vigorously pursuing legal remedies. While we cannot predict or provide assurance as to the final outcome of these proceedings, we do not expect it to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows.

Other matters—We are involved in various tax matters and various regulatory matters. We are also involved in lawsuits relating to damage claims arising out of hurricanes Katrina and Rita, all of which are insured and which are not material to us. As of September 30, 2012, we were involved in a number of other lawsuits, including a dispute for municipal tax payments in Brazil and a dispute involving customs procedures in India, neither of which is material to us, and all of which have arisen in the ordinary course of our business. We do not expect the liability, if any, resulting from these other matters to have a material adverse effect on our consolidated statement of financial position, results of operations or cash flows. We cannot predict with certainty the outcome or effect of any of the litigation matters specifically described above or of any such other pending or threatened litigation. There can be no assurance that our beliefs or expectations as to the outcome or effect of any lawsuit or other litigation matter will prove correct and the eventual outcome of these matters could materially differ from management’s current estimates.

Other environmental matters

Hazardous waste disposal sites—We have certain potential liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state acts regulating cleanup of various hazardous waste disposal sites, including those described below. CERCLA is intended to expedite the remediation of hazardous substances without regard to fault. Potentially responsible parties (“PRPs”) for each site include present and former owners and operators of, transporters to and generators of the substances at the site. Liability is strict and can be joint and several.

We have been named as a PRP in connection with a site located in Santa Fe Springs, California, known as the Waste Disposal, Inc. site. We and other PRPs have agreed with the U.S. Environmental Protection Agency (“EPA”) and the DOJ to settle our potential liabilities for this site by agreeing to perform the remaining remediation required by the EPA. The form of the agreement is a consent decree, which has been entered by the court. The parties to the settlement have entered into a participation agreement, which makes us liable for approximately eight percent of the remediation and related costs. The remediation is complete, and we believe our share of the future operation and maintenance costs of the site is not material. There are additional potential liabilities related to the site, but these cannot be quantified, and we have no reason at this time to believe that they will be material.

One of our subsidiaries has been ordered by the California Regional Water Quality Control Board (“CRWQCB”) to develop a testing plan for a site known as Campus 1000 Fremont in Alhambra, California. This site was formerly owned and operated by certain of our subsidiaries. It is presently owned by an unrelated party, which has received an order to test the property. We have also been advised that one or more of our subsidiaries is likely to be named by the EPA as a PRP for the San Gabriel Valley, Area 3, Superfund site, which includes this property. Testing has been completed at the property but no contaminants of concern were detected. In discussions with CRWQCB staff, we were advised of their intent to issue us a “no further action” letter but it has not yet been received. Based on the test results, we would contest any potential liability. We have no knowledge at this time of the potential cost of any remediation, who else will be named as PRPs, and whether in fact any of our subsidiaries is a responsible party. The subsidiaries in question do not own any operating assets and have limited ability to respond to any liabilities.

Resolutions of other claims by the EPA, the involved state agency or PRPs are at various stages of investigation. These investigations involve determinations of:

· the actual responsibility attributed to us and the other PRPs at the site;

· appropriate investigatory or remedial actions; and

· allocation of the costs of such activities among the PRPs and other site users.

Our ultimate financial responsibility in connection with those sites may depend on many factors, including:

· the volume and nature of material, if any, contributed to the site for which we are responsible;

· the number of other PRPs and their financial viability; and

· the remediation methods and technology to be used.

It is difficult to quantify with certainty the potential cost of these environmental matters, particularly in respect of remediation obligations. Nevertheless, based upon the information currently available, we believe that our ultimate liability arising from all environmental matters, including the liability for all other related pending legal proceedings, asserted legal claims and known potential legal claims which are likely to be asserted, is adequately accrued and should not have a material effect on our statement of financial position or results of operations. Estimated costs of future expenditures for environmental remediation obligations are not discounted to their present value.

Contamination litigation

On July 11, 2005, one of our subsidiaries was served with a lawsuit filed on behalf of three landowners in Louisiana in the 12th Judicial District Court for the Parish of Avoyelles, State of Louisiana. The lawsuit named 19 other defendants, all of which were alleged to have contaminated the plaintiffs’ property with naturally occurring radioactive material, produced water, drilling fluids, chlorides, hydrocarbons, heavy metals and other contaminants as a result of oil and gas exploration activities. Experts retained by the plaintiffs issued a report suggesting significant contamination in the area operated by the subsidiary and another codefendant (the “Co-Defendant”), and claimed that over $300 million would be required to properly remediate the contamination. The experts retained by the defendants conducted their own investigation and concluded that the remediation costs would amount to no more than $2.5 million. The Co-Defendant settled the actions with the three landowners (the “Settlement”). The Co-Defendant subsequently filed suit in 2008 against the subsidiary and certain of its insurers in the Court of Avoyelles Parish to determine their liability for the Settlement.

On March 11, 2010, the Co-Defendant filed a motion for leave to amend the pending litigation in Avoyelles Parish to add GlobalSantaFe Corporation, Transocean Worldwide Inc., its successor, and two other subsidiaries under the single business enterprise doctrine contained in Louisiana law, as well as various additional insurers. The single business enterprise doctrine is similar to corporate veil piercing doctrines. A subsequent amendment added a claim for abuse of process under Louisiana law for an earlier bankruptcy filed by the subsidiary in Delaware, which was ultimately dismissed by a bankruptcy court and various other actions undertaken by our subsidiary, GlobalSantaFe Corporation and Transocean Worldwide Inc. Judgment was granted on a motion in favor of the Co-Defendant on the single business enterprise claims on July 16, 2012.

On its own motion, the court ordered an in-court mediation in August 2012. As a result of the mediation, a settlement was finalized and the matter was dismissed.

Retained risk

Our hull and machinery and excess liability insurance program consists of commercial market and captive insurance policies. We periodically evaluate our insurance limits and self-insured retentions. As of September 30, 2012, the insured value of our drilling rig fleet was approximately $30.2 billion, excluding our rigs under construction.

Hull and machinery coverage—Under the hull and machinery program, we generally maintain a $125 million per occurrence deductible, limited to a maximum of $200 million per policy period. Subject to the same shared deductible, we also have coverage for costs incurred to mitigate damage to a rig up to an amount equal to 25 percent of a rig’s insured value. Also subject to the same shared deductible, we have additional coverage for wreck removal for up to 25 percent of a rig’s insured value, with any excess generally covered to the extent of our remaining excess liability coverage described below. However, we generally retain the risk for all hull and machinery exposures for our Standard Jackups and swamp barge, which are self-insured through our wholly owned captive insurance company.

Excess liability coverage—We carry $775 million of commercial market excess liability coverage, exclusive of the deductibles and self-insured retention, noted below, which generally covers offshore risks such as personal injury, third-party property claims, and third-party non-crew claims, including wreck removal and pollution. Our excess liability coverage has (1) separate $10 million per occurrence deductibles on collision liability claims and (2) separate $5 million per occurrence deductibles on crew personal injury claims and on other third-party non-crew claims. Through our wholly owned captive insurance company, we have retained the risk of the primary $50 million excess liability coverage. In addition, we generally retain the risk for any liability losses in excess of $825 million.

Other insurance coverage—We also carry $100 million of additional insurance that generally covers expenses that would otherwise be assumed by the well owner, such as costs to control the well, redrill expenses and pollution from the well. This additional insurance provides coverage for such expenses in circumstances in which we have legal or contractual liability arising from our gross negligence or willful misconduct.

We have elected to self-insure operators extra expense coverage for ADTI. This coverage provides protection against expenses related to well control, pollution and redrill liability associated with blowouts. ADTI’s customers assume, and indemnify ADTI for, liability associated with blowouts in excess of a contractually agreed amount, generally $50 million.

We do not generally carry commercial market insurance coverage for loss of revenue unless it is contractually required. We do not generally carry commercial market insurance coverage for our fleet for physical damage losses, including liability for wreck removal expenses, which are caused by named windstorms in the U.S. Gulf of Mexico.

Letters of credit and surety bonds

We had outstanding letters of credit totaling $556 million and $650 million at September 30, 2012 and December 31, 2011, respectively, issued under various committed and uncommitted credit lines provided by several banks to guarantee various contract bidding, performance activities and customs obligations. Included in the $556 million outstanding letters of credit at September 30, 2012 were $116 million letters of credit that we have agreed to retain in support of the operations for Shelf Drilling following the closing of the disposal transactions and for up to three years thereafter.

As is customary in the contract drilling business, we also have various surety bonds in place that secure customs obligations relating to the importation of our rigs and certain performance and other obligations. We had outstanding surety bonds totaling $12 million at September 30, 2012 and December 31, 2011.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.25)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 460

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 450

-SubTopic 20

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 440

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 9, 10, 11, 12

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Redeemable Noncontrolling Interest

9 Months Ended

Sep. 30, 2012

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest

Note 16—Redeemable Noncontrolling Interest

On February 29, 2012, Quantum exercised its rights under the put option agreement to exchange its interest in TPDI for our shares or cash, at its election. Based on the redemption value of Quantum’s interest as of that date, we adjusted the carrying amount of the noncontrolling interest and reclassified Quantum’s interest to other current liabilities with a corresponding adjustment in the amount of $106 million to retained earnings within shareholders’ equity. We measured the estimated fair value of Quantum’s interest using significant other observable inputs, representing a Level 2 fair value measurement.

On March 29, 2012, Quantum elected to exchange its interest in TPDI for our shares, net of Quantum’s share of TPDI’s indebtedness, as defined in the put option agreement. Quantum had the right, prior to closing of this exchange, to change its election to cash, net of Quantum’s share of TPDI’s indebtedness.

The carrying amount of Quantum’s interest was measured at its estimated fair value through settlement of the exchange transaction on May 31, 2012, resulting in an adjustment of $25 million to increase the liability with corresponding adjustments to other expense on our condensed consolidated statement of operations. On May 31, 2012, we issued 8,695,351 shares to Quantum in a non-cash exchange for its interest in TPDI to satisfy our obligation, resulting in an adjustment of $134 million and $233 million to shares and additional paid-in capital, respectively. The adjustment included the extinguishment of $148 million of TPDI Notes payable to Quantum and accrued and unpaid interest of $16 million. As a result of this transaction, TPDI became our wholly owned subsidiary. In August 2012, we paid $72 million as the final cash settlement, representing 50 percent of TPDI’s working capital at May 29, 2012.

Until February 29, 2012, Quantum had the unilateral right, pursuant to a put option agreement, to exchange its 50 percent interest in TPDI for our shares or cash, at its election, at an amount based on an appraisal of the fair value of the drillships that are owned by TPDI, subject to certain adjustments. Accordingly, we presented Quantum’s interest as redeemable noncontrolling interest on our condensed consolidated balance sheets until Quantum exercised its rights under the put option agreement. Changes in redeemable noncontrolling interest were as follows (in millions):

	Nine months ended September 30,
	2012			2011
Redeemable noncontrolling interest
Balance, beginning of period	$	116		$	41
Net income attributable to noncontrolling interest	13			36
Other comprehensive loss attributable to noncontrolling interest	—			(6		)
Fair value adjustment to redeemable noncontrolling interest	106			—
Reclassification to accumulated other comprehensive loss	17			—
Reclassification to other current liabilities	(252		)	—
Balance, end of period	$	—		$	71

Shareholders' Equity

9 Months Ended

Sep. 30, 2012

Shareholders' Equity

Shareholders' Equity

Note 17—Shareholders’ Equity

Distribution of qualifying additional paid-in capital—In May 2011, at our annual general meeting, our shareholders approved the distribution of additional paid-in capital in the form of a U.S. dollar denominated dividend of $3.16 per outstanding share, payable in four equal installments of $0.79 per outstanding share, subject to certain limitations. On June 15, 2011 and September 21, 2011, we paid the first two installments in the aggregate amount of $508 million to shareholders of record as of May 20, 2011 and August 26, 2011, respectively. On March 21, 2012, we paid the final installment in the aggregate amount of $278 million to shareholders of record as of February 24, 2012.

Shares held by subsidiary—In December 2008, we issued 16 million of our shares to one of our subsidiaries for future use to satisfy our obligations to deliver shares in connection with awards granted under our incentive plans or other rights to acquire our shares. Our subsidiary held approximately 12 million shares at September 30, 2012 and December 31, 2011.

Accumulated other comprehensive loss—The changes in accumulated other comprehensive loss for the nine months ended September 30, 2012 and 2011 were as follows (in millions):

	Three months ended September 30, 2012												Three months ended September 30, 2011
	Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments			Unrecognized gains (losses) on marketable securities			Total			Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments		Unrecognized gains (losses) on marketable securities			Total
Balance, beginning of period	$	(506	)	$	(8	)	$	(2	)	$	(516	)	$	(331	)	$	5	$	(2	)	$	(328	)
Other comprehensive income attributable to controlling interest	6			(2		)	—			4			3			1		(14		)	(10		)
Balance, end of period	$	(500	)	$	(10	)	$	(2	)	$	(512	)	(328		)	$	6	$	(16	)	$	(338	)

	Nine months ended September 30, 2012												Nine months ended September 30, 2011
	Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments			Unrecognized gains (losses) on marketable securities			Total			Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments		Unrecognized gains (losses) on marketable securities			Total
Balance, beginning of period	$	(501	)	$	7		$	(2	)	$	(496	)	$	(335	)	$	5	$	(2	)	$	(332	)
Reclassification from redeemable noncontrolling interest	—			(17		)	—			(17		)	—			—		—			—
Other comprehensive income (loss) attributable to controlling interest	1			—			—			1			7			1		(14		)	(6		)
Balance, end of period	$	(500	)	$	(10	)	$	(2	)	$	(512	)	(328		)	$	6	$	(16	)	$	(338	)

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 15

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Preferred Stock

-URI http://asc.fasb.org/extlink&oid=6521494

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(d),(e))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 30

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 29, 30, 31

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SAB TOPIC 4.E)

-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.29-31)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section C

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Section B

-Paragraph 7, 11A

-Chapter 1

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section E

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section S99

-Paragraph 4

-Subparagraph (SAB TOPIC 4.C)

-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 129

-Paragraph 2, 3, 4, 5, 6, 7, 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

Reference 17: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 18: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.3-04)

-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 19: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 20: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 21: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 22: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 23: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph d

-Article 4

+ Details

Financial Instruments

9 Months Ended

Sep. 30, 2012

Financial Instruments

Financial Instruments

Note 18—Financial Instruments

The carrying amounts and fair values of our financial instruments were as follows (in millions):

	September 30, 2012				December 31, 2011
	Carrying amount		Fair value		Carrying amount		Fair value
Cash and cash equivalents	$	6,001	$	6,001	$	4,017	$	4,017
Notes receivable and working capital loan receivable	111		111		139		139
Restricted cash investments	835		882		934		975
Long-term debt, including current maturities	13,912		15,550		12,698		13,074
Long-term debt of consolidated variable interest entities, including current maturities	205		205		838		838
Derivative instruments, assets	7		7		36		36
Derivative instruments, liabilities	18		18		38		38

We estimated the fair value of each class of financial instruments, for which estimating fair value is practicable, by applying the following methods and assumptions:

Cash and cash equivalents—The carrying amount of cash and cash equivalents, which are stated at cost plus accrued interest, approximates fair value because of the short maturities of those instruments.

Notes receivable and working capital loan receivable—The aggregate carrying amount represents the amortized cost of our investments, which approximates the estimated fair value. We measured the estimated fair value using significant unobservable inputs, representing a Level 3 fair value measurement, including the credit ratings of the borrowers. At September 30, 2012, the aggregate carrying amount of our notes receivable and working capital loan receivable was $111 million, including $11 million and $100 million recorded in other current assets and other assets, respectively. At December 31, 2011, the aggregate carrying amount of our notes receivable and working capital loan receivable was $139 million, including $37 million and $102 million recorded in other current assets and other assets, respectively.

Restricted cash investments—The carrying amount of the Aker Restricted Cash Investments represents the amortized cost of our investment, which was at $775 million and $889 million at September 30, 2012 and December 31, 2011, respectively. We measured the estimated fair value of the Aker Restricted Investments using significant other observable inputs, representing a Level 2 fair value measurement. The estimated fair value of the Aker Restricted Cash Investments was $822 million and $930 million at September 30, 2012 and December 31, 2011, respectively.

The aggregate carrying amount of the restricted cash investments for the TPDI Credit Facilities, the ADDCL Credit Facilities, and other obligations approximates fair value due to the short term nature of the instruments in which the restricted cash investments are held. The aggregate carrying amount of the restricted cash investments for the TPDI Credit Facilities, the ADDCL Credit Facilities and other obligations was $60 million and $45 million at September 30, 2012 and December 31, 2011, respectively.

Debt—The aggregate carrying amount of our fixed-rate debt was $13.3 billion and $11.9 billion at September 30, 2012 and December 31, 2011, respectively. We measured the estimated fair value of our fixed-rate debt using significant other observable inputs, representing a Level 2 fair value measurement, including the terms and credit spreads for the instruments. The aggregate estimated fair value of our fixed-rate debt was $15.0 billion and $12.2 billion at September 30, 2012 and December 31, 2011, respectively.

The aggregate carrying amount of our variable-rate debt approximates fair value because the terms of those debt instruments include short-term interest rates and exclude penalties for prepayment. We measured the estimated fair value of our variable-rate debt using significant other observable inputs, representing a Level 2 fair value measurement, including the terms and credit spreads for the instruments. The aggregate carrying amount of our variable-rate debt was $591 million and $761 million at September 30, 2012 and December 31, 2011, respectively.

Debt of consolidated variable interest entities—The aggregate carrying amount of the variable-rate debt of our consolidated variable interest entities approximates fair value because the terms of those debt instruments include short-term interest rates and exclude penalties for prepayments. We measured the estimated fair value of the debt of our consolidated variable interest entities using significant other observable inputs, representing a Level 2 fair value measurement, including the terms and credit spreads of the instruments. The aggregate carrying amount of the variable-rate debt of our consolidated variable interest entities was $205 million and $838 million at September 30, 2012 and December 31, 2011, respectively.

Derivative instruments—The aggregate carrying amount of our derivative instruments represents the estimated fair value, measured using significant other observable inputs, representing a Level 2 fair value measurement, including the interest rates and terms of the instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 3, 10, 14, 15

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15C, 15D

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32, 33, 34

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 21

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 44A, 44B

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 28

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 16

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15B

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 17-22, 27, 28

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15A

-Subparagraph a-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

Note 19—Condensed Consolidating Financial Information

Transocean Inc., a wholly owned subsidiary of Transocean Ltd., is the issuer of certain notes and debentures, which have been guaranteed by Transocean Ltd. Transocean Ltd. has also guaranteed borrowings under the Five-Year Revolving Credit Facility. Transocean Ltd.’s guarantee of debt securities of Transocean Inc. is full and unconditional. Transocean Ltd. is not subject to any significant restrictions on its ability to obtain funds by dividends, loans or capital distributions from its consolidated subsidiaries.

The following tables present condensed consolidating financial information for (a) Transocean Ltd. (the “Parent Guarantor”), (b) Transocean Inc. (the “Subsidiary Issuer”), and (c) the other direct and indirect wholly owned and partially owned subsidiaries of the Parent Guarantor (the “Other Subsidiaries”), none of which guarantee any indebtedness of the Subsidiary Issuer. The tables also include the consolidating adjustments necessary to present the condensed financial statements on a consolidated basis. The following condensed consolidating financial information may not necessarily be indicative of the results of operations, financial position or cash flows had the subsidiaries operated as independent entities (in millions):

	Three months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	2,446		$	(6	)	$	2,440
Cost and expenses	3			2			1,688			(6		)	1,687
Gain on disposal of assets, net	—			—			50			—			50
Operating income (loss)	(3		)	(2		)	808			—			803

Other income (expense), net
Interest expense, net	(3		)	(149		)	(13		)	—			(165		)
Equity in earnings	(375		)	(223		)	—			598			—
Other, net	—			(5		)	(3		)	—			(8		)
	(378		)	(377		)	(16		)	598			(173		)
Income (loss) from continuing operations before income tax expense	(381		)	(379		)	792			598			630
Income tax expense	—			—			104			—			104
Income (loss) from continuing operations	(381		)	(379		)	688			598			526
Loss from discontinued operations, net of tax	—			—			(909		)	—			(909		)

Net income (loss)	(381		)	(379		)	(221		)	598			(383		)
Net loss attributable to noncontrolling interest	—			—			(2		)	—			(2		)
Net income (loss) attributable to controlling interest	(381		)	(379		)	(219		)	598			(381		)

Other comprehensive income (loss) before income taxes	(3		)	7			(1		)	—			3
Income taxes related to other comprehensive income	—			—			1			—			1
Other comprehensive income (loss), net of income taxes	(3		)	7			—			—			4

Total comprehensive income (loss)	(384		)	(372		)	(221		)	598			(379		)
Total comprehensive loss attributable to noncontrolling interest	—			—			(2		)	—			(2		)
Total comprehensive income (loss) attributable to controlling interest	$	(384	)	$	(372	)	$	(219	)	$	598		$	(377	)

	Nine months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	6,935		$	(17	)	$	6,918
Cost and expenses	35			4			5,772			(17		)	5,794
Loss on impairment	—			—			(210		)	—			(210		)
Gain on disposal of assets, net	—			—			40			—			40
Operating income (loss)	(35		)	(4		)	993			—			954

Other income (expense), net
Interest expense, net	(10		)	(422		)	(68		)	—			(500		)
Equity in earnings	(630		)	(239		)	—			869			—
Other, net	—			4			(36		)	—			(32		)
	(640		)	(657		)	(104		)	869			(532		)
Income (loss) from continuing operations before income tax expense	(675		)	(661		)	889			869			422
Income tax expense	—			—			96			—			96
Income (loss) from continuing operations	(675		)	(661		)	793			869			326
Loss from discontinued operations, net of tax	—			—			(994		)	—			(994		)

Net income (loss)	(675		)	(661		)	(201		)	869			(668		)
Net income attributable to noncontrolling interest	—			—			7			—			7
Net income (loss) attributable to controlling interest	(675		)	(661		)	(208		)	869			(675		)

Other comprehensive income (loss) before income taxes	(7		)	7			2			—			2
Income taxes related to other comprehensive income	—			—			(1		)	—			(1		)
Other comprehensive income (loss), net of income taxes	(7		)	7			1			—			1

Total comprehensive income (loss)	(682		)	(654		)	(200		)	869			(667		)
Total comprehensive income attributable to noncontrolling interest	—			—			7			—			7
Total comprehensive income (loss) attributable to controlling interest	$	(682	)	$	(654	)	$	(207	)	$	869		$	(674	)

	Three months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	1,995		$	(4	)	$	1,991
Cost and expenses	10			1			1,685			(4		)	1,692
Loss on impairment	—			—			—			—			—
Loss on disposal of assets, net	—			—			(1		)	—			(1		)
Operating income (loss)	(10		)	(1		)	309			—			298

Other income (expense), net
Interest expense, net	(4		)	(125		)	(15		)	—			(144		)
Equity in earnings	(18		)	83			14			(65		)	14
Other, net	—			28			(119		)	—			(91		)
	(22		)	(14		)	(120		)	(65		)	(221		)
Income from continuing operations before income tax expense	(32		)	(15		)	189			(65		)	77
Income tax expense	—			—			93			—			93
Income from continuing operations	(32		)	(15		)	96			(65		)	(16		)
Income from discontinued operations, net of tax	—			—			(5		)	—			(5		)

Net income	(32		)	(15		)	91			(65		)	(21		)
Net income attributable to noncontrolling interest	—			—			11			—			11
Net income attributable to controlling interest	(32		)	(15		)	80			(65		)	(32		)

Other comprehensive income (loss) before income taxes	(3		)	4			(16		)	—			(15		)
Income taxes related to other comprehensive income (loss)	—			—			—			—			—
Other comprehensive income (loss), net of income taxes	(3		)	4			(16		)	—			(15		)

Total comprehensive income	(35		)	(11		)	75			(65		)	(36		)
Total comprehensive income attributable to noncontrolling interest	—			—			6			—			6
Total comprehensive income attributable to controlling interest	$	(35	)	$	(11	)	$	69		$	(65	)	$	(42	)

	Nine months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	5,985		$	(13	)	$	5,972
Cost and expenses	34			3			4,912			(13		)	4,936
Loss on impairment	—			—			—			—			—
Loss on disposal of assets, net	—			—			(1		)	—			(1		)
Operating income (loss)	(34		)	(3		)	1,072			—			1,035

Other income (expense), net
Interest expense, net	(4		)	(386		)	(26		)	—			(416		)
Equity in earnings	450			854			18			(1,304		)	18
Other, net	(1		)	(4		)	(92		)	—			(97		)
	445			464			(100		)	(1,304		)	(495		)
Income from continuing operations before income tax expense	411			461			972			(1,304		)	540
Income tax expense	—			—			211			—			211
Income from continuing operations	411			461			761			(1,304		)	329
Income from discontinued operations, net of tax	—			—			116			—			116

Net income	411			461			877			(1,304		)	445
Net income attributable to noncontrolling interest	—			—			34			—			34
Net income attributable to controlling interest	411			461			843			(1,304		)	411

Other comprehensive income (loss) before income taxes	(4		)	2			(9		)	—			(11		)
Income taxes related to other comprehensive income (loss)	—			—			(2		)	—			(2		)
Other comprehensive income (loss), net of income taxes	(4		)	2			(11		)	—			(13		)

Total comprehensive income	407			463			866			(1,304		)	432
Total comprehensive income attributable to noncontrolling interest	—			—			27						27
Total comprehensive income attributable to controlling interest	$	407		$	463		$	839		$	(1,304	)	$	405

	September 30, 2012
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated

Assets
Cash and cash equivalents	$	9	$	4,029	$	1,963	$	—		$	6,001
Other current assets	17		2,748		3,377		(1,839		)	4,303
Total current assets	26		6,777		5,340		(1,839		)	10,304

Property and equipment, net	1		—		20,458		—			20,459
Goodwill	—		—		2,987		—			2,987
Investment in affiliates	15,926		26,469		—		(42,395		)	—
Other assets	—		1,797		19,315		(19,550		)	1,562
Total assets	15,953		35,043		48,100		(63,784		)	35,312

Liabilities and equity
Debt due within one year	—		2,212		517		—			2,729
Other current liabilities	78		324		5,409		(1,839		)	3,972
Total current liabilities	78		2,536		5,926		(1,839		)	6,701

Long-term debt	568		17,192		13,178		(19,550		)	11,388
Other long-term liabilities	35		392		1,540		—			1,967
Total long-term liabilities	603		17,584		14,718		(19,550		)	13,355

Commitments and contingencies	—		—		—		—			—

Total equity	15,272		14,923		27,456		(42,395		)	15,256
Total liabilities and equity	$	15,953	$	35,043	$	48,100	$	(63,784	)	$	35,312

	December 31, 2011
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated

Assets
Cash and cash equivalents	$	3	$	2,793	$	1,221	$	—		$	4,017
Other current assets	8		784		4,476		(1,749		)	3,519
Total current assets	11		3,577		5,697		(1,749		)	7,536

Property and equipment, net	1		—		20,787		—			20,788
Goodwill	—		—		3,217		—			3,217
Investment in affiliates	16,439		27,518		—		(43,957		)	—
Other assets	—		1,368		20,799		(18,676		)	3,491
Total assets	16,451		32,463		50,500		(64,382		)	35,032

Liabilities and equity
Debt due within one year	—		1,693		494		—			2,187
Other current liabilities	294		367		4,429		(1,749		)	3,341
Total current liabilities	294		2,060		4,923		(1,749		)	5,528

Long-term debt	495		14,308		15,222		(18,676		)	11,349
Other long-term liabilities	25		439		1,948		—			2,412
Total long-term liabilities	520		14,747		17,170		(18,676		)	13,761

Commitments and contingencies
Redeemable noncontrolling interest	—		—		116		—			116

Total equity	15,637		15,656		28,291		(43,957		)	15,627
Total liabilities and equity	$	16,451	$	32,463	$	50,500	$	(64,382	)	$	35,032

	Nine months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Cash flows from operating activities	$	(58	)	$	(842	)	$	2,685		$	—		$	1,785

Cash flows from investing activities
Capital expenditures	—			—			(646		)	—			(646		)
Capital expenditures for discontinued operations	—			—			(75		)	—			(75		)
Proceeds from disposal of assets, net	—			—			189			—			189
Proceeds from disposal of discontinued operations, net	—			—			196			—			196
Investing activities with affiliates, net	(165		)	(1,986		)	(3,027		)	5,178			—
Other, net	—			24			8			—			32
Net cash used in investing activities	(165		)	(1,962		)	(3,355		)	5,178			(304		)

Cash flows from financing activities
Changes in short-term borrowings, net	—			—			(260		)	—			(260		)
Proceeds from debt	—			1,493			—			—			1,493
Repayments of debt	—			(30		)	(554		)	—			(584		)
Proceeds from restricted cash investments	—			—			298			—			298
Deposits to restricted cash investments	—			—			(158		)	—			(158		)
Distribution of qualifying additional paid-in capital	(278		)	—			—			—			(278		)
Financing activities with affiliates, net	523			2,577			2,078			(5,178		)	—
Other, net	(16		)	—			8			—			(8		)
Net cash provided by (used in) financing activities	229			4,040			1,412			(5,178		)	503

Net increase (decrease) in cash and cash equivalents	6			1,236			742			—			1,984
Cash and cash equivalents at beginning of period	3			2,793			1,221			—			4,017
Cash and cash equivalents at end of period	$	9		$	4,029		$	1,963		$	—		$	6,001

	Nine months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Cash flows from operating activities	$	(41	)	$	(397	)	$	1,660		$	—		$	1,222

Cash flows from investing activities
Capital expenditures	—			—			(633		)	—			(633		)
Capital expenditures for discontinued operations	—			—			(37		)	—			(37		)
Investment in marketable security	—			—			(199		)	—			(199		)
Proceeds from disposal of assets, net	—			—			12			—			12
Proceeds from disposal of discontinued operations, net	—			—			353			—			353
Payment for settlement of forward exchange contract, net	—			—			(78		)	—			(78		)
Investing activities with affiliates, net	(875		)	(1,333		)	(1,021		)	3,229			—
Other, net	—			(29		)	2			—			(27		)
Net cash used in investing activities	(875		)	(1,362		)	(1,601		)	3,229			(609		)

Cash flows from financing activities
Changes in short-term borrowings, net	—			58			—			—			58
Proceeds from debt	—			5			—			—			5
Repayments of debt	—			(177		)	(95		)	—			(272		)
Distribution of qualifying paid-in capital	(508		)	—			—			—			(508		)
Financing activities with affiliates, net	1,387			371			1,471			(3,229		)	—
Other, net	—			(3		)	(1		)	—			(4		)
Net cash provided by (used in) financing activities	879			254			1,375			(3,229		)	(721		)

Net increase (decrease) in cash and cash equivalents	(37		)	(1,505		)	1,434			—			(108		)
Cash and cash equivalents at beginning of period	38			2,041			1,275			—			3,354
Cash and cash equivalents at end of period	$	1		$	536		$	2,709		$	—		$	3,246

Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events

Subsequent Events

Note 20—Subsequent Events

Drilling fleet—Subsequent to September 30, 2012, we completed the sale of the Standard Jackup GSF Rig 103 along with related equipment. At September 30, 2012, this drilling unit and related equipment was classified as held for sale with an aggregate carrying amount of $9 million.

Three-Year Secured Revolving Credit Facility—Subsequent to September 30, 2012, we entered into a bank credit agreement, which establishes a $900 million three-year secured revolving credit facility (the “Three-Year Secured Revolving Credit Facility”) that expires on October 25, 2015. Borrowings under the Three-Year Secured Revolving Credit Facility will be secured by Deepwater Champion, Discoverer Americas and Discoverer Inspiration and guaranteed by Transocean Ltd. and Transocean Inc. We may borrow under the Three-Year Secured Revolving Credit Facility at a rate of LIBOR plus a margin that ranges from 0.875 percent to 2.5 percent based on our Debt Rating. We will also pay a facility fee on the daily unused amount of the underlying commitment, which ranges from 0.125 percent to 0.50 percent depending on our Debt Rating. Among other things, the Three-Year Secured Revolving Credit Facility contains covenants imposing limitations on creating liens, incurring subsidiary debt, transactions with affiliates, sale/leaseback transactions, mergers and the sale of substantially all assets. The Three-Year Secured Revolving Credit Facility also contains a covenant imposing a maximum debt to tangible capitalization ratio of 0.6 to 1.0.

Norway tax investigations—Subsequent to September 30, 2012, the European Free Trade Association Court (the “EFTA Court”) in Luxembourg issued an advisory opinion to the Norwegian Courts with respect to an exit tax imposed by the Norwegian tax authorities on the migration of one of our subsidiaries. The EFTA Court concluded that the Norwegian exit tax imposed was illegal and contrary to European Law. Although the EFTA Court does not have final authority over the Norwegian courts, this ruling is consistent with the basis on which our tax returns have been prepared.

Macondo well incident—federal securities claims—Our motion to dismiss the securities law allegations with regard to our joint proxy statement was denied on October 4, 2012. An unrelated action pending in the Second Circuit Court of Appeals involving other parties involves a legal question that could be relevant to the disposition of this case. Defendants have filed a motion asking that this case be stayed until that appeal has been decided, and the court has postponed commencement of discovery until January 2013 to allow time for that motion to be briefed.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Significant Accounting Policies

Basis of presentation

Accounting estimates

Fair value measurements

Consolidation

Share-based compensation

Capitalized interest

Reclassifications

Subsequent events

Subsequent events—We evaluate subsequent events through the time of our filing on the date we issue our financial statements. See Note 20—Subsequent Events.

New Accounting Pronouncements

Recently Adopted Accounting Standards

Recently Issued Accounting Standards

Correction of Errors in Previously Reported Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2012

Correction of Errors in Previously Reported Consolidated Financial Statements

Summary of correction of previously reported financial statements

	Three months ended September 30, 2011			Nine months ended September 30, 2011

Legal and other costs	$	(19	)	$	(49	)
Repair and maintenance costs	59			11
Income tax benefit	5			25
Other immaterial adjustments, net	(10		)	14
Net adjustment to income from continuing operations	35			1
Net adjustment to income from discontinued operations, net of tax	4			—
Net adjustment to net income attributable to noncontrolling interest	—			(16		)
Net adjustment to net income attributable to controlling interest	$	39		$	17

	Three months ended September 30, 2011									Nine months ended September 30, 2011
	Previously reported			Adjustments			As adjusted			Previously reported			Adjustments			As adjusted
Operating revenues
Contract drilling revenues	$	1,830		$	(3	)	$	1,827		$	5,399		$	(3	)	$	5,396
Other revenues	164			—			164			576			—			576
	1,994			(3		)	1,991			5,975			(3		)	5,972
Costs and expenses
Operating and maintenance	1,377			(33		)	1,344			3,894			21			3,915
Depreciation and amortization	281			—			281			821			—			821
General and administrative	67			—			67			200			—			200
	1,725			(33		)	1,692			4,915			21			4,936
Loss on impairment	—			—			—			—			—			—
Gain (loss) on disposal of assets, net	(1		)	—			(1		)	(1		)	—			(1		)
Operating income	268			30			298			1,059			(24		)	1,035

Other income (expense), net
Interest income	7			—			7			27			—			27
Interest expense, net of amounts capitalized	(151		)	—			(151		)	(443		)	—			(443		)
Other, net	(77		)	—			(77		)	(79		)	—			(79		)
	(221		)	—			(221		)	(495		)	—			(495		)
Income from continuing operations before income tax expense	47			30			77			564			(24		)	540
Income tax expense	98			(5		)	93			236			(25		)	211
Income (loss) from continuing operations	(51		)	35			(16		)	328			1			329
Income (loss) from discontinued operations, net of tax	(9		)	4			(5		)	116			—			116

Net income (loss)	(60		)	39			(21		)	444			1			445
Net income (loss) attributable to noncontrolling interest	11			—			11			50			(16		)	34
Net income (loss) attributable to controlling interest	$	(71	)	$	39		$	(32	)	$	394		$	17		$	411

Earnings (loss) per share-basic
Earnings (loss) from continuing operations	$	(0.19	)	$	0.11		$	(0.08	)	$	0.86		$	0.06		$	0.92
Earnings (loss) from discontinued operations	(0.03		)	0.01			(0.02		)	0.36			—			0.36
Earnings (loss) per share	$	(0.22	)	$	0.12		$	(0.10	)	$	1.22		$	0.06		$	1.28

Earnings (loss) per share-diluted
Earnings (loss) from continuing operations	$	(0.19	)	$	0.11		$	(0.08	)	$	0.86		$	0.06		$	0.92
Earnings (loss) from discontinued operations	(0.03		)	0.01			(0.02		)	0.36			—			0.36
Earnings (loss) per share	$	(0.22	)	$	0.12		$	(0.10	)	$	1.22		$	0.06		$	1.28

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References+ Details

Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2012

Variable Interest Entities

Carrying Amounts of Variable Interest Entities

	September 30, 2012						December 31, 2011
	Assets		Liabilities		Net carrying amount		Assets		Liabilities		Net carrying amount
Variable interest entity
TPDI	$	—	$	—	$	—	$	1,562	$	673	$	889
ADDCL	941		313		628		930		334		596
Total	$	941	$	313	$	628	$	2,492	$	1,007	$	1,485

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 22E

-Appendix D

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 46R

-Paragraph 4

-Subparagraph g

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 22B

-Appendix D

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 23A

-Appendix D

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5710-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 5A

-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6759159-111685

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5747-111685

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7880789&loc=d3e5728-111685

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228884-111685

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Variable Interest Entity

-URI http://asc.fasb.org/extlink&oid=6528138

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 140

-Paragraph 35

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 46R

-Paragraph 2, 14, 15, 16, 23, 24, 25, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 167

-Paragraph 24

-Appendix D

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS140-4/FIN46(R)-8

-Paragraph C4

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Business Combination (Tables)

9 Months Ended

Sep. 30, 2012

Business Combination

Schedule of pro forma combined operating results from continuing operations

	Three months ended September 30, 2011		Nine months ended September 30, 2011
Operating revenues	$	2,099	$	6,284
Operating income	345		1,181
Income (loss) from continuing operations	$	35	$	427

Per share earnings (loss) from continuing operations
Basic	$	0.08	$	1.23
Diluted	$	0.08	$	1.23

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References+ Details

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Income Taxes

Valuation allowance for non-current deferred tax assets

	September 30, 2012		December 31, 2011
Valuation allowance for non-current deferred tax assets	$	182	$	183

Schedule of unrecognized tax benefits, including related interest and penalties

	September 30, 2012		December 31, 2011
Unrecognized tax benefits, excluding interest and penalties	$	453	$	515
Interest and penalties	207		256
Unrecognized tax benefits, including interest and penalties	$	660	$	771

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References+ Details

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2012

Discontinued Operations

Summarized results income statement, assets and liabilities of discontinued operations

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Operating revenues	$	257		$	259		$	696		$	804
Operating and maintenance expense	(224		)	(169		)	(656		)	(539		)
Depreciation and amortization expense	(48		)	(80		)	(182		)	(258		)
Loss on impairment of assets in discontinued operations	(878		)	(7		)	(913		)	(32		)
Gain (loss) on disposal of assets in discontinued operations, net	(1		)	(1		)	70			175
Income (loss) from discontinued operations before income tax expense	(894		)	2			(985		)	150
Income tax expense	(15		)	(7		)	(9		)	(34		)
Income (loss) from discontinued operations, net of tax	$	(909	)	$	(5	)	$	(994	)	$	116

	September 30, 2012		December 31, 2011
Assets
Rigs and related equipment, net	$	819	$	—
Materials and supplies	99		—
Oil and gas properties, net	6		24
Other related assets	6		2
Assets held for sale	$	930	$	26

Materials and supplies	$	—	$	98
Other assets	8		21
Other current assets	$	8	$	119

Rigs and related equipment, net	$	—	$	1,745
Deferred costs	—		42
Other assets	$	—	$	1,787

Liabilities
Deferred revenue	$	—	$	17
Deferred income taxes, net	6		6
Other liabilities	3		14
Other current liabilities	$	9	$	37

Deferred revenue	$	—	$	8
Deferred income taxes, net	—		5
Other liabilities	$	—	$	13

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Earnings Per Share

	Three months ended September 30,										Nine months ended September 30,
	2012				2011						2012				2011
	Basic		Diluted		Basic			Diluted			Basic		Diluted		Basic			Diluted
Numerator for earnings (loss) per share
Income (loss) from continuing operations attributable to controlling interest	$	528	$	528	$	(27	)	$	(27	)	$	319	$	319	$	295		$	295
Undistributed earnings allocable to participating securities	—		—		—			—			—		—		(2		)	(2)
Income (loss) from continuing operations available to shareholders	$	528	$	528	$	(27	)	$	(27	)	$	319	$	319	$	293		$	293

Denominator for earnings (loss) per share
Weighted-average shares outstanding	359		359		320			320			354		354		320			320
Effect of stock options and other share-based awards	—		—		—			—			—		—		—			—
Weighted-average shares for per share calculation	359		359		320			320			354		354		320			320

Per share earnings (loss) from continuing operations	$	1.47	$	1.47	$	(0.08	)	$	(0.08	)	$	0.90	$	0.90	$	0.92		$	0.92

Drilling Fleet (Tables)

9 Months Ended

Sep. 30, 2012

Drilling Fleet

Actual capital expenditures and other capital additions, including capitalized interest

	Nine months ended September 30,
	2012			2011
Construction work in progress, at beginning of period	$	1,360		$	1,450

Newbuild construction program
Transocean Ao Thai (a)	49			10
Deepwater Asgard (b)	40			—
Deepwater Invictus (b)	35			—
Transocean Honor (c)	35			83
Transocean Siam Driller (a)	32			72
Transocean Andaman (a)	31			72
Deepwater Champion (d)	—			76
Other construction projects and capital additions	424			320
Total capital expenditures	646			633
Changes in accrued capital expenditures	(10		)	11

Property and equipment placed into service
Transocean Honor (c)	(262		)	—
Deepwater Champion (d)	—			(881		)
Other property and equipment	(413		)	(348		)
Construction work in progress, at end of period	$	1,321		$	865

(d) Deepwater Champion, an Ultra-Deepwater drillship, commenced operations in May 2011.

Debt (Tables)

9 Months Ended

Sep. 30, 2012

Debt

Debt, net of unamortized discounts, premiums and fair value adjustments

	September 30, 2012						December 31, 2011
	Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total		Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total
5% Notes due February 2013	$	251	$	—	$	251	$	253	$	—	$	253
5.25% Senior Notes due March 2013 (a)	503		—		503		507		—		507
TPDI Credit Facilities due March 2015	420		—		420		—		473		473
4.95% Senior Notes due November 2015 (a)	1,120		—		1,120		1,120		—		1,120
Aker Revolving Credit and Term Loan Facility due December 2015	—		—		—		594		—		594
Callable Bonds due February 2016	274		—		274		267		—		267
5.05% Senior Notes due December 2016 (a)	999		—		999		999		—		999
2.5% Senior Notes due October 2017 (a)	748		—		748		—		—		—
ADDCL Credit Facilities due December 2017	—		205		205		—		217		217
Eksportfinans Loans due January 2018	774		—		774		884		—		884
6.00% Senior Notes due March 2018 (a)	998		—		998		998		—		998
7.375% Senior Notes due April 2018 (a)	247		—		247		247		—		247
TPDI Notes due October 2019	—		—		—		—		148		148
6.50% Senior Notes due November 2020 (a)	899		—		899		899		—		899
6.375% Senior Notes due December 2021 (a)	1,199		—		1,199		1,199		—		1,199
3.8% Senior Notes due October 2022 (a)	745		—		745		—		—		—
7.45% Notes due April 2027 (a)	97		—		97		97		—		97
8% Debentures due April 2027 (a)	57		—		57		57		—		57
7% Notes due June 2028	311		—		311		311		—		311
Capital lease contract due August 2029	664		—		664		676		—		676
7.5% Notes due April 2031 (a)	598		—		598		598		—		598
1.50% Series B Convertible Senior Notes due December 2037 (a)	—		—		—		30		—		30
1.50% Series C Convertible Senior Notes due December 2037 (a)	1,709		—		1,709		1,663		—		1,663
6.80% Senior Notes due March 2038 (a)	999		—		999		999		—		999
7.35% Senior Notes due December 2041 (a)	300		—		300		300		—		300
Total debt	13,912		205		14,117		12,698		838		13,536
Less debt due within one year
5% Notes due February 2013	251		—		251		—		—		—
5.25% Senior Notes due March 2013 (a)	503		—		503		—		—		—
TPDI Credit Facilities due March 2015	70		—		70		—		70		70
Aker Revolving Credit and Term Loan Facility due December 2015	—		—		—		90		—		90
ADDCL Credit Facilities due November 2017	—		28		28		—		27		27
Eksportfinans Loans due January 2018	148		—		148		142		—		142
TPDI Notes due October 2019	—		—		—		—		148		148
Capital lease contract due August 2029	20		—		20		17		—		17
1.50% Series B Convertible Senior Notes due December 2037 (a)	—		—		—		30		—		30
1.50% Series C Convertible Senior Notes due December 2037 (a)	1,709		—		1,709		1,663		—		1,663
Total debt due within one year	2,701		28		2,729		1,942		245		2,187
Total long-term debt	$	11,211	$	177	$	11,388	$	10,756	$	593	$	11,349

Scheduled maturities of debt

	Transocean Ltd. and subsidiaries		Consolidated variable interest entities		Consolidated total
Twelve months ending September 30,
2013	$	2,710	$	28	$	2,738
2014	240		29		269
2015	451		31		482
2016	1,535		62		1,597
2017	1,175		36		1,211
Thereafter	7,788		19		7,807
Total debt, excluding unamortized discounts, premiums and fair value adjustments	13,899		205		14,104
Total unamortized discounts, premiums and fair value adjustments, net	13		—		13
Total debt	$	13,912	$	205	$	14,117

Interest expense, excluding amortization of debt issue costs

	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Interest expense
Series B Convertible Senior Notes due 2037	$	—	$	21	$	—	$	61
Series C Convertible Senior Notes due 2037	22		21		65		62

Carrying amounts of liability components of outstanding convertible senior notes

	September 30, 2012							December 31, 2011
	Principal amount		Unamortized discount			Carrying amount		Principal amount		Unamortized discount			Carrying amount
Carrying amount of liability component
Series B Convertible Senior Notes due 2037	$	—	$	—		$	—	$	30	$	—		$	30
Series C Convertible Senior Notes due 2037	1,722		(13		)	1,709		1,722		(59		)	1,663

Carrying amounts of equity components of outstanding convertible senior notes

	September 30, 2012		December 31, 2011
Carrying amount of equity component
Series B Convertible Senior Notes due 2037	$	—	$	4
Series C Convertible Senior Notes due 2037	276		276

Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2012

Derivatives designated as hedging instruments

Derivatives designated as hedging and not designated as hedging instruments

Schedule of aggregate notional amounts and the weighted average interest rates associated with derivatives

	Pay					Receive
	Aggregate notional amount		Fixed or variable rate	Weighted average rate		Aggregate notional amount			Fixed or variable rate	Weighted average rate
Interest rate swaps, fair value hedges	$	750	variable	3.6	%	$	750		fixed	5.2	%
Interest rate swaps, cash flow hedges	$	403	fixed	2.4	%	$	403		variable	0.4	%
Cross-currency swaps, cash flow hedges	$	102	fixed	8.9	%	NOK		560	fixed	11.0	%

Schedule of effect on the entity's condensed consolidated statement of operations resulting from derivatives designated as cash flow hedges

		Three months ended September 30,						Nine months ended September 30,
	Statement of operations classification	2012			2011			2012			2011
Loss associated with effective portion	Interest expense, net of amounts capitalized	$	(1	)	$	(3	)	$	(4	)	$	(8	)
Gain associated with effective portion	Other, net	4			—			4			—

Schedule of balance sheet classification and aggregate carrying amount of the entity's derivatives measured at fair value, including accrued interest

	Balance sheet classification	September 30, 2012		December 31, 2011
Interest rate swaps, fair value hedges	Other current assets	$	6	$	5
Interest rate swaps, fair value hedges	Other assets	—		31
Interest rate swaps, cash flow hedges	Other long-term liabilities	15		16
Cross-currency swaps, cash flow hedges	Other current assets	1		—
Cross-currency swaps, cash flow hedges	Other long-term liabilities	3		7

Derivative not designated as hedging instruments | Interest rate swaps

Derivatives designated as hedging and not designated as hedging instruments

Schedule of effect on the entity's condensed consolidated statement of operations resulting from derivatives designated as cash flow hedges

		Three months ended September 30,					Nine months ended September 30,
	Statement of operations classification	2012		2011			2012			2011
Loss associated with undesignated interest rate swaps	Interest expense, net of amounts capitalized	$	—	$	—		$	(1	)	$	—
Loss associated with undesignated forward exchange contract	Other, net	—		(78		)	—			(78		)

Schedule of balance sheet classification and aggregate carrying amount of the entity's derivatives measured at fair value, including accrued interest

	Balance sheet classification	September 30, 2012		December 31, 2011
Interest rate swaps, undesignated	Other long-term liabilities	$	—	$	15

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1A

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 25

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(n)(2))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

+ Details

Postemployment Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2012

Postemployment Benefit Plans

Net Periodic Benefit Costs Before Tax

	Three months ended September 30, 2012											Three months ended September 30, 2011
	U.S. Plans			Non-U.S. Plans			OPEB Plans		Total			U.S. Plans			Non-U.S. Plans			OPEB Plans			Total
Net periodic benefit costs
Service cost	$	13		$	7		$	1	$	21		$	10		$	4		$	—		$	14
Interest cost	15			4			1		20			15			5			1			21
Expected return on plan assets	(16		)	(4		)	—		(20		)	(15		)	(5		)	—			(20		)
Settlements and curtailments	—			19			—		19			1			—			—			1
Actuarial losses, net	11			1			—		12			5			2			—			7
Prior service cost, net	—			(1		)	—		(1		)	—			1			(1		)	—
Transition obligation, net	—			—			—		—			—			(1		)	—			(1		)
Net periodic benefit costs	$	23		$	26		$	2	$	51		$	16		$	6		$	—		$	22

Funding contributions	$	1		$	10		$	1	$	12		$	1		$	7		$	1		$	9

	Nine months ended September 30, 2012											Nine months ended September 30, 2011
	U.S. Plans			Non-U.S. Plans			OPEB Plans		Total			U.S. Plans			Non-U.S. Plans			OPEB Plans			Total
Net periodic benefit costs
Service cost	$	37		$	23		$	1	$	61		$	32		$	14		$	1		$	47
Interest cost	44			17			2		63			44			16			2			62
Expected return on plan assets	(47		)	(17		)	—		(64		)	(47		)	(17		)	—			(64		)
Settlements and curtailments	2			19			—		21			2			—			—			2
Actuarial losses, net	31			3			—		34			17			2			—			19
Prior service cost, net	(1		)	(1		)	—		(2		)	(1		)	1			(2		)	(2		)
Net periodic benefit costs	$	66		$	44		$	3	$	113		$	47		$	16		$	1		$	64

Funding contributions	$	104		$	27		$	3	$	134		$	69		$	20		$	4		$	93

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies

Schedule of purchase obligations

	Purchase obligations
Twelve months ending September 30,
2013	$	632
2014	1,387
2015	224
2016	621
2017	617
Thereafter	—
Total	$	3,481

- Definition

Tabular disclosure of unconditional purchase obligations that are not recognized as a liability on the balance sheet, including the nature and significant terms of an unconditional purchase obligation; the amount of the fixed and determinable portion of the obligation as of the date of the latest balance sheet presented in the aggregate and, if determinable, for each of the five succeeding fiscal years; the nature of any variable components of the obligation; the amount purchased under the obligation (for example, the take-or-pay or throughput contract) for the reporting period; and may include the amount of imputed interest necessary to reduce the obligation to present value.

+ References+ Details

Redeemable Noncontrolling Interest (Tables)

9 Months Ended

Sep. 30, 2012

Redeemable Noncontrolling Interest

Changes in redeemable noncontrolling interest

	Nine months ended September 30,
	2012			2011
Redeemable noncontrolling interest
Balance, beginning of period	$	116		$	41
Net income attributable to noncontrolling interest	13			36
Other comprehensive loss attributable to noncontrolling interest	—			(6		)
Fair value adjustment to redeemable noncontrolling interest	106			—
Reclassification to accumulated other comprehensive loss	17			—
Reclassification to other current liabilities	(252		)	—
Balance, end of period	$	—		$	71

- Definition

Tabular disclosure of redeemable noncontrolling interest (as defined) included in the statement of financial position as either a liability or temporary equity. As of the date of the statement of financial position, such redeemable noncontrolling interest is currently redeemable, as defined, for cash or other assets of the entity at (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder of the noncontrolling interest, or (3) upon occurrence of an event that is not solely within the control of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number D-98

-Paragraph 44

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number D-98

-Paragraph 43

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number D-98

-Paragraph 40

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number D-98

-Paragraph 41

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number D-98

-Paragraph 42

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 25

-Appendix A

+ Details

Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Shareholders' Equity

Changes in accumulated other comprehensive income

	Three months ended September 30, 2012												Three months ended September 30, 2011
	Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments			Unrecognized gains (losses) on marketable securities			Total			Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments		Unrecognized gains (losses) on marketable securities			Total
Balance, beginning of period	$	(506	)	$	(8	)	$	(2	)	$	(516	)	$	(331	)	$	5	$	(2	)	$	(328	)
Other comprehensive income attributable to controlling interest	6			(2		)	—			4			3			1		(14		)	(10		)
Balance, end of period	$	(500	)	$	(10	)	$	(2	)	$	(512	)	(328		)	$	6	$	(16	)	$	(338	)

	Nine months ended September 30, 2012												Nine months ended September 30, 2011
	Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments			Unrecognized gains (losses) on marketable securities			Total			Unrecognized components of net periodic benefit costs			Unrecognized gains (losses) on derivative instruments		Unrecognized gains (losses) on marketable securities			Total
Balance, beginning of period	$	(501	)	$	7		$	(2	)	$	(496	)	$	(335	)	$	5	$	(2	)	$	(332	)
Reclassification from redeemable noncontrolling interest	—			(17		)	—			(17		)	—			—		—			—
Other comprehensive income (loss) attributable to controlling interest	1			—			—			1			7			1		(14		)	(6		)
Balance, end of period	$	(500	)	$	(10	)	$	(2	)	$	(512	)	(328		)	$	6	$	(16	)	$	(338	)

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Financial Instruments

Carrying amounts and fair values of the financial instruments

	September 30, 2012				December 31, 2011
	Carrying amount		Fair value		Carrying amount		Fair value
Cash and cash equivalents	$	6,001	$	6,001	$	4,017	$	4,017
Notes receivable and working capital loan receivable	111		111		139		139
Restricted cash investments	835		882		934		975
Long-term debt, including current maturities	13,912		15,550		12,698		13,074
Long-term debt of consolidated variable interest entities, including current maturities	205		205		838		838
Derivative instruments, assets	7		7		36		36
Derivative instruments, liabilities	18		18		38		38

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Financial Information

Schedule of condensed consolidating statement of operations

	Three months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	2,446		$	(6	)	$	2,440
Cost and expenses	3			2			1,688			(6		)	1,687
Gain on disposal of assets, net	—			—			50			—			50
Operating income (loss)	(3		)	(2		)	808			—			803

Other income (expense), net
Interest expense, net	(3		)	(149		)	(13		)	—			(165		)
Equity in earnings	(375		)	(223		)	—			598			—
Other, net	—			(5		)	(3		)	—			(8		)
	(378		)	(377		)	(16		)	598			(173		)
Income (loss) from continuing operations before income tax expense	(381		)	(379		)	792			598			630
Income tax expense	—			—			104			—			104
Income (loss) from continuing operations	(381		)	(379		)	688			598			526
Loss from discontinued operations, net of tax	—			—			(909		)	—			(909		)

Net income (loss)	(381		)	(379		)	(221		)	598			(383		)
Net loss attributable to noncontrolling interest	—			—			(2		)	—			(2		)
Net income (loss) attributable to controlling interest	(381		)	(379		)	(219		)	598			(381		)

Other comprehensive income (loss) before income taxes	(3		)	7			(1		)	—			3
Income taxes related to other comprehensive income	—			—			1			—			1
Other comprehensive income (loss), net of income taxes	(3		)	7			—			—			4

Total comprehensive income (loss)	(384		)	(372		)	(221		)	598			(379		)
Total comprehensive loss attributable to noncontrolling interest	—			—			(2		)	—			(2		)
Total comprehensive income (loss) attributable to controlling interest	$	(384	)	$	(372	)	$	(219	)	$	598		$	(377	)

	Nine months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	6,935		$	(17	)	$	6,918
Cost and expenses	35			4			5,772			(17		)	5,794
Loss on impairment	—			—			(210		)	—			(210		)
Gain on disposal of assets, net	—			—			40			—			40
Operating income (loss)	(35		)	(4		)	993			—			954

Other income (expense), net
Interest expense, net	(10		)	(422		)	(68		)	—			(500		)
Equity in earnings	(630		)	(239		)	—			869			—
Other, net	—			4			(36		)	—			(32		)
	(640		)	(657		)	(104		)	869			(532		)
Income (loss) from continuing operations before income tax expense	(675		)	(661		)	889			869			422
Income tax expense	—			—			96			—			96
Income (loss) from continuing operations	(675		)	(661		)	793			869			326
Loss from discontinued operations, net of tax	—			—			(994		)	—			(994		)

Net income (loss)	(675		)	(661		)	(201		)	869			(668		)
Net income attributable to noncontrolling interest	—			—			7			—			7
Net income (loss) attributable to controlling interest	(675		)	(661		)	(208		)	869			(675		)

Other comprehensive income (loss) before income taxes	(7		)	7			2			—			2
Income taxes related to other comprehensive income	—			—			(1		)	—			(1		)
Other comprehensive income (loss), net of income taxes	(7		)	7			1			—			1

Total comprehensive income (loss)	(682		)	(654		)	(200		)	869			(667		)
Total comprehensive income attributable to noncontrolling interest	—			—			7			—			7
Total comprehensive income (loss) attributable to controlling interest	$	(682	)	$	(654	)	$	(207	)	$	869		$	(674	)

	Three months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	1,995		$	(4	)	$	1,991
Cost and expenses	10			1			1,685			(4		)	1,692
Loss on impairment	—			—			—			—			—
Loss on disposal of assets, net	—			—			(1		)	—			(1		)
Operating income (loss)	(10		)	(1		)	309			—			298

Other income (expense), net
Interest expense, net	(4		)	(125		)	(15		)	—			(144		)
Equity in earnings	(18		)	83			14			(65		)	14
Other, net	—			28			(119		)	—			(91		)
	(22		)	(14		)	(120		)	(65		)	(221		)
Income from continuing operations before income tax expense	(32		)	(15		)	189			(65		)	77
Income tax expense	—			—			93			—			93
Income from continuing operations	(32		)	(15		)	96			(65		)	(16		)
Income from discontinued operations, net of tax	—			—			(5		)	—			(5		)

Net income	(32		)	(15		)	91			(65		)	(21		)
Net income attributable to noncontrolling interest	—			—			11			—			11
Net income attributable to controlling interest	(32		)	(15		)	80			(65		)	(32		)

Other comprehensive income (loss) before income taxes	(3		)	4			(16		)	—			(15		)
Income taxes related to other comprehensive income (loss)	—			—			—			—			—
Other comprehensive income (loss), net of income taxes	(3		)	4			(16		)	—			(15		)

Total comprehensive income	(35		)	(11		)	75			(65		)	(36		)
Total comprehensive income attributable to noncontrolling interest	—			—			6			—			6
Total comprehensive income attributable to controlling interest	$	(35	)	$	(11	)	$	69		$	(65	)	$	(42	)

	Nine months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Operating revenues	$	—		$	—		$	5,985		$	(13	)	$	5,972
Cost and expenses	34			3			4,912			(13		)	4,936
Loss on impairment	—			—			—			—			—
Loss on disposal of assets, net	—			—			(1		)	—			(1		)
Operating income (loss)	(34		)	(3		)	1,072			—			1,035

Other income (expense), net
Interest expense, net	(4		)	(386		)	(26		)	—			(416		)
Equity in earnings	450			854			18			(1,304		)	18
Other, net	(1		)	(4		)	(92		)	—			(97		)
	445			464			(100		)	(1,304		)	(495		)
Income from continuing operations before income tax expense	411			461			972			(1,304		)	540
Income tax expense	—			—			211			—			211
Income from continuing operations	411			461			761			(1,304		)	329
Income from discontinued operations, net of tax	—			—			116			—			116

Net income	411			461			877			(1,304		)	445
Net income attributable to noncontrolling interest	—			—			34			—			34
Net income attributable to controlling interest	411			461			843			(1,304		)	411

Other comprehensive income (loss) before income taxes	(4		)	2			(9		)	—			(11		)
Income taxes related to other comprehensive income (loss)	—			—			(2		)	—			(2		)
Other comprehensive income (loss), net of income taxes	(4		)	2			(11		)	—			(13		)

Total comprehensive income	407			463			866			(1,304		)	432
Total comprehensive income attributable to noncontrolling interest	—			—			27						27
Total comprehensive income attributable to controlling interest	$	407		$	463		$	839		$	(1,304	)	$	405

Schedule of condensed consolidating balance sheet

	September 30, 2012
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated

Assets
Cash and cash equivalents	$	9	$	4,029	$	1,963	$	—		$	6,001
Other current assets	17		2,748		3,377		(1,839		)	4,303
Total current assets	26		6,777		5,340		(1,839		)	10,304

Property and equipment, net	1		—		20,458		—			20,459
Goodwill	—		—		2,987		—			2,987
Investment in affiliates	15,926		26,469		—		(42,395		)	—
Other assets	—		1,797		19,315		(19,550		)	1,562
Total assets	15,953		35,043		48,100		(63,784		)	35,312

Liabilities and equity
Debt due within one year	—		2,212		517		—			2,729
Other current liabilities	78		324		5,409		(1,839		)	3,972
Total current liabilities	78		2,536		5,926		(1,839		)	6,701

Long-term debt	568		17,192		13,178		(19,550		)	11,388
Other long-term liabilities	35		392		1,540		—			1,967
Total long-term liabilities	603		17,584		14,718		(19,550		)	13,355

Commitments and contingencies	—		—		—		—			—

Total equity	15,272		14,923		27,456		(42,395		)	15,256
Total liabilities and equity	$	15,953	$	35,043	$	48,100	$	(63,784	)	$	35,312

	December 31, 2011
	Parent Guarantor		Subsidiary Issuer		Other Subsidiaries		Consolidating adjustments			Consolidated

Assets
Cash and cash equivalents	$	3	$	2,793	$	1,221	$	—		$	4,017
Other current assets	8		784		4,476		(1,749		)	3,519
Total current assets	11		3,577		5,697		(1,749		)	7,536

Property and equipment, net	1		—		20,787		—			20,788
Goodwill	—		—		3,217		—			3,217
Investment in affiliates	16,439		27,518		—		(43,957		)	—
Other assets	—		1,368		20,799		(18,676		)	3,491
Total assets	16,451		32,463		50,500		(64,382		)	35,032

Liabilities and equity
Debt due within one year	—		1,693		494		—			2,187
Other current liabilities	294		367		4,429		(1,749		)	3,341
Total current liabilities	294		2,060		4,923		(1,749		)	5,528

Long-term debt	495		14,308		15,222		(18,676		)	11,349
Other long-term liabilities	25		439		1,948		—			2,412
Total long-term liabilities	520		14,747		17,170		(18,676		)	13,761

Commitments and contingencies
Redeemable noncontrolling interest	—		—		116		—			116

Total equity	15,637		15,656		28,291		(43,957		)	15,627
Total liabilities and equity	$	16,451	$	32,463	$	50,500	$	(64,382	)	$	35,032

Schedule of condensed consolidating statement of cash flows

	Nine months ended September 30, 2012
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Cash flows from operating activities	$	(58	)	$	(842	)	$	2,685		$	—		$	1,785

Cash flows from investing activities
Capital expenditures	—			—			(646		)	—			(646		)
Capital expenditures for discontinued operations	—			—			(75		)	—			(75		)
Proceeds from disposal of assets, net	—			—			189			—			189
Proceeds from disposal of discontinued operations, net	—			—			196			—			196
Investing activities with affiliates, net	(165		)	(1,986		)	(3,027		)	5,178			—
Other, net	—			24			8			—			32
Net cash used in investing activities	(165		)	(1,962		)	(3,355		)	5,178			(304		)

Cash flows from financing activities
Changes in short-term borrowings, net	—			—			(260		)	—			(260		)
Proceeds from debt	—			1,493			—			—			1,493
Repayments of debt	—			(30		)	(554		)	—			(584		)
Proceeds from restricted cash investments	—			—			298			—			298
Deposits to restricted cash investments	—			—			(158		)	—			(158		)
Distribution of qualifying additional paid-in capital	(278		)	—			—			—			(278		)
Financing activities with affiliates, net	523			2,577			2,078			(5,178		)	—
Other, net	(16		)	—			8			—			(8		)
Net cash provided by (used in) financing activities	229			4,040			1,412			(5,178		)	503

Net increase (decrease) in cash and cash equivalents	6			1,236			742			—			1,984
Cash and cash equivalents at beginning of period	3			2,793			1,221			—			4,017
Cash and cash equivalents at end of period	$	9		$	4,029		$	1,963		$	—		$	6,001

	Nine months ended September 30, 2011
	Parent Guarantor			Subsidiary Issuer			Other Subsidiaries			Consolidating adjustments			Consolidated

Cash flows from operating activities	$	(41	)	$	(397	)	$	1,660		$	—		$	1,222

Cash flows from investing activities
Capital expenditures	—			—			(633		)	—			(633		)
Capital expenditures for discontinued operations	—			—			(37		)	—			(37		)
Investment in marketable security	—			—			(199		)	—			(199		)
Proceeds from disposal of assets, net	—			—			12			—			12
Proceeds from disposal of discontinued operations, net	—			—			353			—			353
Payment for settlement of forward exchange contract, net	—			—			(78		)	—			(78		)
Investing activities with affiliates, net	(875		)	(1,333		)	(1,021		)	3,229			—
Other, net	—			(29		)	2			—			(27		)
Net cash used in investing activities	(875		)	(1,362		)	(1,601		)	3,229			(609		)

Cash flows from financing activities
Changes in short-term borrowings, net	—			58			—			—			58
Proceeds from debt	—			5			—			—			5
Repayments of debt	—			(177		)	(95		)	—			(272		)
Distribution of qualifying paid-in capital	(508		)	—			—			—			(508		)
Financing activities with affiliates, net	1,387			371			1,471			(3,229		)	—
Other, net	—			(3		)	(1		)	—			(4		)
Net cash provided by (used in) financing activities	879			254			1,375			(3,229		)	(721		)

Net increase (decrease) in cash and cash equivalents	(37		)	(1,505		)	1,434			—			(108		)
Cash and cash equivalents at beginning of period	38			2,041			1,275			—			3,354
Cash and cash equivalents at end of period	$	1		$	536		$	2,709		$	—		$	3,246

Nature of Business (Details)	Sep. 30, 2012 drillingunit
Continuing operations
Number of mobile offshore drilling units	82
Number of High-Specification Floaters (in drilling units)	48
Number of Midwater Floaters (in drilling units)	25
Number of High-Specification Jackups (in drilling units)	9
Number of Ultra-Deepwater drillships under construction (in drilling units)	6
Number of High-Specification Jackups under construction (in drilling units)	3
Discontinued operations
Number of Standard Jackups (in drilling units)	32
Number of swamp barge (in drilling units)	1

Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Share-based compensation expense
Share-based compensation expense	$ 24	$ 20	$ 72	$ 74
Capitalized interest
Capitalized interest costs on construction work in progress	$ 12	$ 5	$ 37	$ 30

Correction of Errors in Previously Reported Consolidated Financial Statements (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2011 Previously reported	Sep. 30, 2011 Previously reported	Mar. 31, 2012 Adjustments	Sep. 30, 2011 Adjustments	Sep. 30, 2011 Adjustments	Dec. 31, 2011 Adjustments
Summary of adjustments for increases and (decreases) to net income (loss) from continuing operations and net income (loss) attributable to controlling interest
Adjustments related to Legal and other costs account							$ (37)	$ (19)	$ (49)	$ (67)
Adjustments related to Repair and maintenance costs account								59	11
Adjustments related to Other immaterial adjustments, net account								(10)	14
Operating revenues
Contract drilling revenues	2,310	1,827	6,498	5,396	1,830	5,399		(3)	(3)
Other revenues	130	164	420	576	164	576
Total operating revenues	2,440	1,991	6,918	5,972	1,994	5,975		(3)	(3)
Costs and expenses
Operating and maintenance	1,338	1,344	4,731	3,915	1,377	3,894		(33)	21
Depreciation and amortization	280	281	846	821	281	821
General and administrative	69	67	217	200	67	200
Total costs and expenses	1,687	1,692	5,794	4,936	1,725	4,915		(33)	21
Loss on impairment			(210)
Gain (loss) on disposal of assets, net	50	(1)	40	(1)	(1)	(1)
Operating income	803	298	954	1,035	268	1,059		30	(24)
Other income (expense), net
Interest income	15	7	43	27	7	27
Interest expense, net of amounts capitalized	(180)	(151)	(543)	(443)	(151)	(443)
Other, net	(8)	(77)	(32)	(79)	(77)	(79)
Total other income (expense), net	(173)	(221)	(532)	(495)	(221)	(495)
Income from continuing operations before income tax expense	630	77	422	540	47	564		30	(24)
Income tax expense	104	93	96	211	98	236		(5)	(25)
Income (loss) from continuing operations	526	(16)	326	329	(51)	328		35	1
Income (loss) from discontinued operations, net of tax	(909)	(5)	(994)	116	(9)	116		4
Net income (loss)	(383)	(21)	(668)	445	(60)	444		39	1
Net income (loss) attributable to noncontrolling interest	(2)	11	7	34	11	50			(16)
Net income (loss) attributable to controlling interest	$ (381)	$ (32)	$ (675)	$ 411	$ (71)	$ 394		$ 39	$ 17
Earnings (loss) per share-basic
Earnings (loss) from continuing operations (in dollars per share)	$ 1.47	$ (0.08)	$ 0.90	$ 0.92	$ (0.19)	$ 0.86		$ 0.11	$ 0.06
Earnings (loss) from discontinued operations (in dollars per share)	$ (2.53)	$ (0.02)	$ (2.80)	$ 0.36	$ (0.03)	$ 0.36		$ 0.01
Earnings (loss) per share (in dollars per share)	$ (1.06)	$ (0.10)	$ (1.90)	$ 1.28	$ (0.22)	$ 1.22		$ 0.12	$ 0.06
Earnings (loss) per share-diluted
Earnings (loss) from continuing operations (in dollars per share)	$ 1.47	$ (0.08)	$ 0.90	$ 0.92	$ (0.19)	$ 0.86		$ 0.11	$ 0.06
Earnings (loss) from discontinued operations (in dollars per share)	$ (2.53)	$ (0.02)	$ (2.80)	$ 0.36	$ (0.03)	$ 0.36		$ 0.01
Earnings (loss) per share (in dollars per share)	$ (1.06)	$ (0.10)	$ (1.90)	$ 1.28	$ (0.22)	$ 1.22		$ 0.12	$ 0.06

Variable Interest Entities (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012 note drillingunit	Dec. 31, 2011
Carrying amounts associated with consolidated variable interest entities
Assets	$ 941	$ 2,492
Liabilities	313	1,007
Net carrying amount	628	1,485
Unconsolidated Variable interest entities
Number of notes receivable from sale of Midwater Floaters	2
Number of Midwater Floaters sold (in drilling units)	2
Stated interest rate on notes receivable received from sale of Midwater Floaters (as a percent)	9.00%
Stated interest rate on working capital loan (as a percent)	10.00%
Aggregate carrying amounts of notes receivable in connection with sale of Midwater Floaters	106	110
Aggregate carrying amounts of working capital loan receivable in connection with sale of Midwater Floaters	5	29
Aggregate exposure to loss on receivable instruments in connection with sale of Midwater Floaters	111
TPDI
Carrying amounts associated with consolidated variable interest entities
Assets		1,562
Liabilities		673
Net carrying amount		889
ADDCL
Carrying amounts associated with consolidated variable interest entities
Assets	941	930
Liabilities	313	334
Net carrying amount	$ 628	$ 596

Business Combination (Details) (Aker Drilling)	1 Months Ended	3 Months Ended		9 Months Ended
Business Combination (Details) (Aker Drilling)	Oct. 31, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Oct. 03, 2011 USD ($)	Oct. 03, 2011 NOK
Business Combination
Percentage of equity held by entity immediately before the acquisition date						99.00%	99.00%
Aggregate amount paid						$ 1,400,000,000	7,900,000,000
Purchase price allocated to assets and liabilities at estimated fair value
Current assets						323,000,000
Drilling rigs and other property and equipment						1,800,000,000
Other assets						757,000,000
Other liabilities						291,000,000
Long-term debt						1,600,000,000
Restricted cash investment	901,000,000
Goodwill						285,000,000
Net adjustment to goodwill		12,000,000
Contract drilling revenues associated with the operations of Aker Drilling included in operating revenues		90,000,000		285,000,000
Pro forma combined operating results
Operating revenues			2,099,000,000		6,284,000,000
Operating income			345,000,000		1,181,000,000
Income (loss) from continuing operations			$ 35,000,000		$ 427,000,000
Per share earnings (loss) from continuing operations
Basic (in dollars per share)			$ 0.08		$ 1.23
Diluted (in dollars per share)			$ 0.08		$ 1.23

Impairments (Details) (USD $)	3 Months Ended	9 Months Ended
Impairments (Details) (USD $)	Dec. 31, 2011	Sep. 30, 2012
Impairment of goodwill and other indefinite Lived intangible assets
Estimated loss on impairment of goodwill	$ 5,200,000,000
Estimate of loss on impairment of goodwill per diluted share	$ 16.15
Adjustment to original estimate of goodwill		118,000,000
Adjustment to original estimate of goodwill, per diluted share		$ 0.33
Customer relationships
Assets held for sale
Aggregate losses on impairment of assets per diluted share		$ 0.10
Impairment of definite-lived intangible assets
Impairment loss on finite-lived intangible asset		53,000,000
Impairment loss on finite-lived intangible asset, continuing operations		37,000,000
Trade name intangible asset
Assets held for sale
Aggregate losses on impairment of assets per diluted share		$ 0.07
Impairment of goodwill and other indefinite Lived intangible assets
Impairment loss on indefinite-lived intangible asset		39,000,000
Impairment loss on indefinite-lived intangible asset, continuing operations, net of tax		$ 25,000,000

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2012 issue	Sep. 30, 2012 jurisdiction issue	Sep. 30, 2011	Dec. 31, 2011
Components of provision (benefit) for income taxes
Annual effective tax rate (as a percent)		20.50%	30.80%
Deferred taxes
Valuation allowance for non-current deferred tax assets	$ 182	$ 182		$ 183
Unrecognized tax benefits
Unrecognized tax benefits, excluding interest and penalties	453	453		515
Interest and penalties	207	207		256
Unrecognized tax benefits, including interest and penalties	660	660		771
Current tax benefit recognized from the settlement of dispute with tax authorities and lapse of applicable statutes of limitations, including interest and penalties	2	196
Reasonably possible percentage that unrecognized tax benefits could decrease within next twelve months, Maximum	20.00%	20.00%
Reasonably possible percentage that unrecognized tax benefits could increase within next twelve months, Maximum	10.00%	10.00%
Income Tax Examination
Number of jurisdictions with extensions beyond statute of limitations		2
Maximum number of years agreed to extensions beyond the statute of limitations		17 years
Number of tax issues relating to assessment	2	2
2006 and 2007 income tax adjustments, excluding interest and penalties	278	278
2006 through 2009 restructuring transactions tax adjustments excluding interest and penalties	295	295
2006 through 2009 withholding and other tax adjustments, excluding interest	160	160
Assessed penalties associated with the various adjustments for 2006 and 2007 audits, excluding interest		88
Net adjustments of additional taxes, excluding interest and penalties, related to assessments on 2008 and 2009 U.S. federal income tax returns	473	473
Brazil tax assessment penalty	73	73
Brazil tax assessment interest	146	146
Brazil tax assessment for income tax returns 2000 to 2004	98	98
Percentage of penalties to be assessed by Brazil tax authorities	75.00%	75.00%
Minimum
Income Tax Examination
Range of tax returns are subject to examination		3 years
Maximum
Income Tax Examination
Range of tax returns are subject to examination		6 years
Norway Tax Assessments Prior to 2012
Income Tax Examination
Norway tax assessment due to migration of subsidiary, including interest	116	116
Norway tax assessment due to 2001 dividend payment, including interest	70	70
Norway tax assessment due to foreign exchange deductions and dividend withholding taxes, including interest	7	7
Guarantee amount for tax assessment related to the migration of subsidiary	118	118
Norway tax additional financial security, including interest and penalties	206	206
Percentage of penalties to be assessed by Norway tax authorities	60.00%	60.00%
Number of subsidiaries against which notification of criminal charges are issued		2
Number of employees of former external advisors indicted		2
Norway Tax Assessments 2012
Income Tax Examination
Number of subsidiaries against which notification of criminal charges are issued		2
Number of subsidiaries against which notification of criminal charges are extending		2
Number of employees of former external advisors indicted		2
Financial claim issued by the Norweigian authorities supplementing the criminal indictments		$ 311

Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended						3 Months Ended		9 Months Ended		1 Months Ended		3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended
Discontinued Operations (Details) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Sep. 30, 2012 Sell of Standard Jackup and swamp barge market sectors drillingunit	Sep. 30, 2012 Sell of Standard Jackup and swamp barge market sectors drillingunit	Dec. 31, 2011 Sell of Standard Jackup and swamp barge market sectors	Sep. 30, 2012 Shelf Drilling International Holdings, Ltd item drillingunit	Sep. 30, 2012 Shelf Drilling International Holdings, Ltd item drillingunit	Sep. 30, 2012 Shelf Drilling International Holdings, Ltd Maximum	Sep. 30, 2012 Shelf Drilling International Holdings, Ltd Minimum	Sep. 30, 2012 Standard Jackups George H. Galloway, GSF Britannia, GSF Labrador and Transocean Mercury and swamp barge Searex IV	Sep. 30, 2011 Standard Jackups George H. Galloway, GSF Britannia, GSF Labrador and Transocean Mercury and swamp barge Searex IV	Sep. 30, 2011 High-Specification Jackup Trident 20	Sep. 30, 2012 Challenger Minerals	Sep. 30, 2011 Challenger Minerals	Sep. 30, 2012 Challenger Minerals	Sep. 30, 2011 Challenger Minerals	May 31, 2012 Challenger Minerals (North Sea)	Apr. 30, 2012 Challenger Minerals (North Sea)	Sep. 30, 2012 Challenger Minerals (North Sea)	Sep. 30, 2012 Challenger Minerals (North Sea)	Sep. 30, 2012 GSF Adriatic II and GSF Rig 136	Sep. 30, 2011 George H. Galloway, GSF Britannia, GSF Labrador and Searex IV	Sep. 30, 2011 George H. Galloway, GSF Britannia, GSF Labrador and Searex IV
Discontinued Operations
Number of Standard Jackups sell						46	46		37	37
Number of Swamp barge sell						1	1
Number of remaining Standard Jackups sell within next 12 months						9	9
Aggregate carrying amounts of assets associated with disposal group						$ 924,000,000	$ 924,000,000	$ 1,900,000,000
Aggregate carrying amounts of liabilites associated with disposal group								33,000,000
Goodwill allocated to disposal group						112,000,000	112,000,000
Aggregate carrying amount of long-lived assets						124,000,000	124,000,000		800,000,000	800,000,000
Letters of credit issued under committed and uncommitted credit lines									116,000,000	116,000,000
Term of letters of credit										3 years
Maximum financial support									125,000,000	125,000,000
Maximum additional financial support, excluding parent gurantees									65,000,000	65,000,000
Number of private equity firms									3	3
Impairment costs relating to employees and contract labor									20,000,000	20,000,000
Impairment costs including costs for required reactivation and mobilizing certain drilling units										60,000,000
Number of reactive drilling unit									1	1
Legal and financial advisory costs							17,000,000
Proceeds from disposal of discontinued operations										1,100,000,000
Proceeds from disposal of discontinued operations, net										855,000,000					259,000,000					10,000,000	7,000,000
Proceeds from disposal of discontinued operations non-cash										195,000,000
Expected transition services offering period											27 months	9 months
Cumulative percentage of perpetual preference shares										10.00%
Escalating percentage of perpetual perference shares										2.00%
Maximum cumulative percentage of perpetual perference shares										14.00%
Proceeds from disposal of assets, net	178,000,000	4,000,000	189,000,000	12,000,000									179,000,000	94,000,000
Gain (loss) on disposal of assets, net	50,000,000	(1,000,000)	40,000,000	(1,000,000)									64,000,000	8,000,000
Aggregate gains on sale of assets per diluted share													$ 0.18	$ 0.03	$ 0.51								$ 0.03
Recognized losses on disposal of unrelated assets	1,000,000	2,000,000	6,000,000	2,000,000
Long live assets impairment loss						744,000,000	744,000,000
Long live assets impairment loss per diluted share from discontinued operations, net of tax						$ 2.09	$ 2.09
Goodwill impairment loss						112,000,000	112,000,000
Goodwill impairment loss per diluted share from discontinued operations, net of tax						$ 0.31	$ 0.31
Loss on impairment, tax effect																										1,000,000
Summarized results of discontinued operations
Operating revenues	257,000,000	259,000,000	696,000,000	804,000,000
Operating and maintenance expense	(224,000,000)	(169,000,000)	(656,000,000)	(539,000,000)
Depreciation and amortization expense	(48,000,000)	(80,000,000)	(182,000,000)	(258,000,000)
Loss on impairment of assets in discontinued operations	(878,000,000)	(7,000,000)	(913,000,000)	(32,000,000)																					(3,000,000)	(28,000,000)
Gain (loss) on disposal of assets in discontinued operations, net	(1,000,000)	(1,000,000)	70,000,000	175,000,000											169,000,000	2,000,000	4,000,000	8,000,000	4,000,000			1,000,000	12,000,000	29,000,000
Income (loss) from discontinued operations before income tax expense	(894,000,000)	2,000,000	(985,000,000)	150,000,000
Income tax expense	(15,000,000)	(7,000,000)	(9,000,000)	(34,000,000)
Income (loss) from discontinued operations, net of tax	(909,000,000)	(5,000,000)	(994,000,000)	116,000,000
Loss on impairment, net of tax																	(2,000,000)	(7,000,000)	(2,000,000)
Impairment loss per diluted share from discontinued operations, net of tax																	$ 0.01	$ 0.02	$ 0.01					$ 0.08	$ 0.01	$ 0.08
Assets
Rigs and related equipment, net	819,000,000		819,000,000
Materials and supplies	99,000,000		99,000,000
Oil and gas properties, net	6,000,000		6,000,000		24,000,000
Other related assets	6,000,000		6,000,000		2,000,000
Assets held for sale	930,000,000		930,000,000		26,000,000
Materials and supplies					98,000,000
Other assets	8,000,000		8,000,000		21,000,000
Other current assets	8,000,000		8,000,000		119,000,000
Rig and related equipment, net					1,745,000,000
Deferred costs					42,000,000
Other assets					1,787,000,000
Liabilities
Deferred revenue					17,000,000
Deferred income taxes, net	6,000,000		6,000,000		6,000,000
Other liabilities	3,000,000		3,000,000		14,000,000
Other current liabilities	9,000,000		9,000,000		37,000,000
Deferred revenue					8,000,000
Deferred income taxes, net					5,000,000
Other liabilities					$ 13,000,000

Earnings Per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerator for earnings (loss) per share, basic
Income (loss) from continuing operations attributable to controlling interest	$ 528	$ (27)	$ 319	$ 295
Undistributed earnings allocable to participating securities				(2)
Income (loss) from continuing operations available to shareholders	528	(27)	319	293
Denominator for earnings (loss) per share, basic
Weighted-average shares outstanding	359	320	354	320
Weighted-average shares for per share calculation, basic	359	320	354	320
Per share earnings (loss) from continuing operations, basic	$ 1.47	$ (0.08)	$ 0.90	$ 0.92
Numerator for earnings (loss) per share, diluted
Income (loss) from continuing operations attributable to controlling interest	528	(27)	319	295
Undistributed earnings allocable to participating securities				(2)
Income (loss) from continuing operations available to shareholders	$ 528	$ (27)	$ 319	$ 293
Denominator for earnings (loss) per share, diluted
Weighted-average shares outstanding	359	320	354	320
Weighted-average shares for per share calculation, diluted	359	320	354	320
Per share earnings (loss) from continuing operations, diluted	$ 1.47	$ (0.08)	$ 0.90	$ 0.92
1.50% Series B Convertible Senior Notes due December 2037
Anti-dilutive securities
Interest rate on convertible debt not having effect on earning per share calculation (as a percent)	1.50%		1.50%
1.50% Series C Convertible Senior Notes due December 2037
Anti-dilutive securities
Interest rate on convertible debt not having effect on earning per share calculation (as a percent)	1.50%		1.50%
Share-based awards
Anti-dilutive securities
Share-based awards excluded from earnings per share calculation	1.9	2.9	1.9	1.8

Drilling Fleet (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Capital expenditures and other capital additions, including capitalized interest costs
Construction work in progress, at beginning of period			$ 1,360	$ 1,450
Total capital expenditures	201	124	646	633
Changes in accrued capital expenditures			(10)	11
Construction work in progress, at end of period	1,321	865	1,321	865
Transocean Ao Thai
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			49	10
Deepwater Asgard
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			40
Deepwater Invictus
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			35
Transocean Honor
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			35	83
Property and equipment placed into service			(262)
Transocean Siam Driller
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			32	72
Transocean Andaman
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			31	72
Deepwater Asgard and Deepwater Invictus
Capital expenditures and other capital additions, including capitalized interest costs
Number of Ultra-Deepwater Floaters under construction which are expected to commence operations in the second quarter of 2014	2		2
Deepwater Champion
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures				76
Property and equipment placed into service				(881)
Other construction projects and capital additions
Capital expenditures and other capital additions, including capitalized interest costs
Total capital expenditures			424	320
Other property and equipment
Capital expenditures and other capital additions, including capitalized interest costs
Property and equipment placed into service			$ (413)	$ (348)
Transocean Siam Driller, Transocean Andaman and Transocean Ao Thai
Capital expenditures and other capital additions, including capitalized interest costs
Number of High-Specification Jackups under construction (in drilling units)	3		3
Ultra Deepwater drillships
Capital expenditures and other capital additions, including capitalized interest costs
Number of Ultra Deepwater Drillships under Construction	4		4

- Definition

The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets.

+ References+ Details

Drilling Fleet (Details 2) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended			3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012 Sell of Standard Jackup and swamp barge market sectors drillingunit	Sep. 30, 2012 Deepwater Floaters Discoverer 534 and Jim Cunningham	Sep. 30, 2012 Deepwater Floaters Discoverer 534 and Jim Cunningham	Sep. 30, 2011 Overseas Drilling Limited	Sep. 30, 2011 Overseas Drilling Limited	Jul. 31, 2011 Overseas Drilling Limited	Sep. 30, 2012 Sale of Other Assets	Sep. 30, 2011 Sale of Other Assets	Sep. 30, 2012 Sale of Other Assets	Sep. 30, 2011 Sale of Other Assets
Dispositions
Net cash proceeds from sale of assets	$ 178	$ 4	$ 189	$ 12		$ 178	$ 178
Net cash proceeds from sale of assets								22	22
Gain (loss) on the sale of assets	50	(1)	40	(1)		51	51				1	1	11	3
Gain (loss) on the sale of assets								13	13
Gain (loss) on the sale of assets, net of tax						$ 48	$ 48
Aggregate losses on impairment of assets per diluted share								$ 0.04	$ 0.04
Gain (loss) on the sale of assets per diluted share						$ 0.13	$ 0.13
Ownership interest in affiliate (as a percent)										50.00%
Number of Standard Jackups sell					46
Number of Swamp barge sell					1

Debt (Details)	1 Months Ended														3 Months Ended	9 Months Ended				9 Months Ended			9 Months Ended																	9 Months Ended											1 Months Ended									9 Months Ended																																														9 Months Ended
Debt (Details)	May 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2012 NOK	Dec. 31, 2011 USD ($)	Sep. 30, 2012 5% Notes due February 2013 USD ($)	Dec. 31, 2011 5% Notes due February 2013 USD ($)	Sep. 30, 2012 5.25% Senior Notes due March 2013 USD ($)	Dec. 31, 2011 5.25% Senior Notes due March 2013 USD ($)	Sep. 30, 2012 TPDI Credit Facilities due March 2015 USD ($)	Dec. 31, 2011 TPDI Credit Facilities due March 2015 USD ($)	Sep. 30, 2012 4.95% Senior Notes due November 2015 USD ($)	Dec. 31, 2011 4.95% Senior Notes due November 2015 USD ($)	Dec. 31, 2011 Aker Revolving Credit and Term Loan Facility due December 2015 USD ($)	Feb. 21, 2011 Aker Revolving Credit and Term Loan Facility due December 2015 USD ($)	Sep. 30, 2012 Aker Term Loan Facility due December 2015 USD ($)	Sep. 30, 2012 Aker Term Loan Facility due December 2015 USD ($)	Feb. 21, 2011 Aker Term Loan Facility due December 2015 USD ($)	Sep. 30, 2012 5.05% Senior Notes due December 2016 USD ($)	Dec. 31, 2011 5.05% Senior Notes due December 2016 USD ($)	Sep. 30, 2012 2.5% Senior Notes due October 2017 USD ($)	Sep. 30, 2012 Callable Bonds due February 2016 USD ($)	Dec. 31, 2011 Callable Bonds due February 2016 USD ($)	Sep. 30, 2012 FRN Callable Bonds USD ($)	Sep. 30, 2012 FRN Callable Bonds NOK	Sep. 30, 2012 11% Callable Bonds USD ($)	Sep. 30, 2012 11% Callable Bonds NOK	Sep. 30, 2012 ADDCL Credit Facilities due December 2017 USD ($)	Dec. 31, 2011 ADDCL Credit Facilities due December 2017 USD ($)	Sep. 30, 2012 Eksportfinans Loans due January 2018 USD ($)	Dec. 31, 2011 Eksportfinans Loans due January 2018 USD ($)	Sep. 30, 2012 6.00% Senior Notes due March 2018 USD ($)	Dec. 31, 2011 6.00% Senior Notes due March 2018 USD ($)	Sep. 30, 2012 7.375% Senior Notes due April 2018 USD ($)	Dec. 31, 2011 7.375% Senior Notes due April 2018 USD ($)	Dec. 31, 2011 TPDI Notes due October 2019 USD ($)	Sep. 30, 2012 6.50% Senior Notes due November 2020 USD ($)	Dec. 31, 2011 6.50% Senior Notes due November 2020 USD ($)	Sep. 30, 2012 6.375% Senior Notes due December 2021 USD ($)	Dec. 31, 2011 6.375% Senior Notes due December 2021 USD ($)	Sep. 30, 2012 3.8% Senior Notes due October 2022 USD ($)	Sep. 30, 2012 7.45% Notes due April 2027 USD ($)	Dec. 31, 2011 7.45% Notes due April 2027 USD ($)	Sep. 30, 2012 8% Debentures due April 2027 USD ($)	Dec. 31, 2011 8% Debentures due April 2027 USD ($)	Sep. 30, 2012 7% Notes due June 2028 USD ($)	Dec. 31, 2011 7% Notes due June 2028 USD ($)	Sep. 30, 2012 Capital lease contract due August 2029 USD ($)	Dec. 31, 2011 Capital lease contract due August 2029 USD ($)	Sep. 30, 2012 7.5% Notes due April 2031 USD ($)	Dec. 31, 2011 7.5% Notes due April 2031 USD ($)	Feb. 29, 2012 1.50% Series B Convertible Senior Notes due December 2037 USD ($)	Sep. 30, 2012 1.50% Series B Convertible Senior Notes due December 2037	Dec. 31, 2011 1.50% Series B Convertible Senior Notes due December 2037 USD ($)	Sep. 30, 2012 1.50% Series C Convertible Senior Notes due December 2037 USD ($)	Dec. 31, 2011 1.50% Series C Convertible Senior Notes due December 2037 USD ($)	Sep. 30, 2012 6.80% Senior Notes due March 2038 USD ($)	Dec. 31, 2011 6.80% Senior Notes due March 2038 USD ($)	Sep. 30, 2012 7.35% Senior Notes due December 2041 USD ($)	Dec. 31, 2011 7.35% Senior Notes due December 2041 USD ($)	Sep. 30, 2012 Five Year Revolving Credit Facility USD ($)	Sep. 30, 2012 Five Year Revolving Credit Facility Minimum Facility Fee	Sep. 30, 2012 Five Year Revolving Credit Facility Maximum Facility Fee	Sep. 30, 2012 Transocean Ltd. and Subsidiaries USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 5% Notes due February 2013 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 5% Notes due February 2013 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 5.25% Senior Notes due March 2013 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 5.25% Senior Notes due March 2013 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries TPDI Credit Facilities due March 2015 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 4.95% Senior Notes due November 2015 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 4.95% Senior Notes due November 2015 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries Aker Revolving Credit and Term Loan Facility due December 2015 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 5.05% Senior Notes due December 2016 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 5.05% Senior Notes due December 2016 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 2.5% Senior Notes due October 2017 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries Callable Bonds due February 2016 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries Callable Bonds due February 2016 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries Eksportfinans Loans due January 2018 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries Eksportfinans Loans due January 2018 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 6.00% Senior Notes due March 2018 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 6.00% Senior Notes due March 2018 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 7.375% Senior Notes due April 2018 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 7.375% Senior Notes due April 2018 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 6.50% Senior Notes due November 2020 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 6.50% Senior Notes due November 2020 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 6.375% Senior Notes due December 2021 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 6.375% Senior Notes due December 2021 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 3.8% Senior Notes due October 2022 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 7.45% Notes due April 2027 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 7.45% Notes due April 2027 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 8% Debentures due April 2027 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 8% Debentures due April 2027 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 7% Notes due June 2028 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 7% Notes due June 2028 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries Capital lease contract due August 2029 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries Capital lease contract due August 2029 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 7.5% Notes due April 2031 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 7.5% Notes due April 2031 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 1.50% Series B Convertible Senior Notes due December 2037 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 1.50% Series C Convertible Senior Notes due December 2037 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 1.50% Series C Convertible Senior Notes due December 2037 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 6.80% Senior Notes due March 2038 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 6.80% Senior Notes due March 2038 USD ($)	Sep. 30, 2012 Transocean Ltd. and Subsidiaries 7.35% Senior Notes due December 2041 USD ($)	Dec. 31, 2011 Transocean Ltd. and Subsidiaries 7.35% Senior Notes due December 2041 USD ($)	Sep. 30, 2012 Transocean Inc.	Sep. 30, 2012 Consolidated variable interest entities USD ($)	Dec. 31, 2011 Consolidated variable interest entities USD ($)	Dec. 31, 2011 Consolidated variable interest entities TPDI Credit Facilities due March 2015 USD ($)	Sep. 30, 2012 Consolidated variable interest entities ADDCL Credit Facilities due December 2017 USD ($)	Dec. 31, 2011 Consolidated variable interest entities ADDCL Credit Facilities due December 2017 USD ($)	Dec. 31, 2011 Consolidated variable interest entities TPDI Notes due October 2019 USD ($)	Sep. 30, 2012 TPDI TPDI Credit Facilities due March 2015 USD ($)	Dec. 31, 2011 TPDI TPDI Credit Facilities due March 2015 USD ($)	Sep. 30, 2012 TPDI TPDI Credit Facilities Senior Term Loan Due March 2015 USD ($)	Sep. 30, 2012 TPDI TPDI Credit Facilities Junior Term Loan Due March 2015 USD ($)	Sep. 30, 2012 TPDI TPDI Credit Facilities Revolving Credit Facility Due March 2015 USD ($)	Sep. 30, 2012 TPDI Uncommitted Credit Facility Established by Subsidiary USD ($)	Sep. 30, 2012 ADDCL ADDCL Credit Facilities Tranche A Due November 2017 USD ($)	Sep. 30, 2012 ADDCL ADDCL Credit Facilities Tranche C Due November 2017 USD ($)	Sep. 30, 2012 ADDCL ADDCL Secondary Loan Facility Due December 2015 USD ($)	Dec. 31, 2011 ADDCL ADDCL Secondary Loan Facility Due December 2015 USD ($)
Long-term debt by current and noncurrent
Total debt		$ 14,117,000,000		$ 13,536,000,000	$ 251,000,000	$ 253,000,000	$ 503,000,000	$ 507,000,000	$ 420,000,000	$ 473,000,000	$ 1,120,000,000	$ 1,120,000,000	$ 594,000,000					$ 999,000,000	$ 999,000,000	$ 748,000,000	$ 274,000,000	$ 267,000,000					$ 205,000,000	$ 217,000,000	$ 774,000,000	$ 884,000,000	$ 998,000,000	$ 998,000,000	$ 247,000,000	$ 247,000,000	$ 148,000,000	$ 899,000,000	$ 899,000,000	$ 1,199,000,000	$ 1,199,000,000	$ 745,000,000	$ 97,000,000	$ 97,000,000	$ 57,000,000	$ 57,000,000	$ 311,000,000	$ 311,000,000	$ 664,000,000	$ 676,000,000	$ 598,000,000	$ 598,000,000			$ 30,000,000	$ 1,709,000,000	$ 1,663,000,000	$ 999,000,000	$ 999,000,000	$ 300,000,000	$ 300,000,000				$ 13,912,000,000	$ 12,698,000,000	$ 251,000,000	$ 253,000,000	$ 503,000,000	$ 507,000,000	$ 420,000,000	$ 1,120,000,000	$ 1,120,000,000	$ 594,000,000	$ 999,000,000	$ 999,000,000	$ 748,000,000	$ 274,000,000	$ 267,000,000	$ 774,000,000	$ 884,000,000	$ 998,000,000	$ 998,000,000	$ 247,000,000	$ 247,000,000	$ 899,000,000	$ 899,000,000	$ 1,199,000,000	$ 1,199,000,000	$ 745,000,000	$ 97,000,000	$ 97,000,000	$ 57,000,000	$ 57,000,000	$ 311,000,000	$ 311,000,000	$ 664,000,000	$ 676,000,000	$ 598,000,000	$ 598,000,000	$ 30,000,000	$ 1,709,000,000	$ 1,663,000,000	$ 999,000,000	$ 999,000,000	$ 300,000,000	$ 300,000,000		$ 205,000,000	$ 838,000,000	$ 473,000,000	$ 205,000,000	$ 217,000,000	$ 148,000,000
Debt due within one year		2,729,000,000		2,187,000,000	251,000,000		503,000,000		70,000,000	70,000,000			90,000,000														28,000,000	27,000,000	148,000,000	142,000,000					148,000,000												20,000,000	17,000,000					30,000,000	1,709,000,000	1,663,000,000								2,701,000,000	1,942,000,000	251,000,000		503,000,000		70,000,000			90,000,000						148,000,000	142,000,000																20,000,000	17,000,000			30,000,000	1,709,000,000	1,663,000,000						28,000,000	245,000,000	70,000,000	28,000,000	27,000,000	148,000,000
Long-term debt		11,388,000,000		11,349,000,000																																																											11,211,000,000	10,756,000,000																																											177,000,000	593,000,000
Debt instrument interest rate stated percentage					5.00%		5.25%				4.95%							5.05%		2.50%					11.00%	11.00%					6.00%		7.375%			6.50%		6.375%		3.80%	7.45%		8.00%		7.00%				7.50%			1.50%		1.50%		6.80%		7.35%
Percentage ownership interest in Transocean Inc. by Transocean Ltd.																																																																																																										100.00%
Credit facility term																																																												5 years
Borrowing capacity, maximum														500,000,000																																														2,000,000,000																																																					1,265,000,000				75,000,000		215,000,000	399,000,000	90,000,000
Weighted-average interest rate (as a percent)																																																																																																																	2.00%						1.50%		3.50%
Debt instrument face amount																	400,000,000																																																																																																		1,000,000,000	190,000,000
Commitment fee percentage at period end																																																												0.275%	0.125%	0.325%
Credit facility available borrowing capacity																																																												2,000,000,000
Letters of credit issued and outstanding																																																												24,000,000																																																										60,000,000
Principal amount		14,104,000,000																					164,000,000	940,000,000	98,000,000	560,000,000																											30,000,000	1,722,000,000	1,722,000,000								13,899,000,000																																												205,000,000												177,000,000
Aggregate principal amount of notes issued																				750,000,000																				750,000,000
Redemption price of debt instrument (as a percent)																				100.00%																				100.00%
Aggregate principal amount outstanding		14,104,000,000																		750,000,000																				750,000,000																							13,899,000,000																																												205,000,000
Credit facility amount outstanding																																																																																																																	840,000,000								80,000,000
Debt due to a subsidiary, eliminated in consolidation																																																																																																																	420,000,000							399,000,000	52,000,000
Prepayment of debt	148,000,000														173,000,000	333,000,000																																			30,000,000
Loss on retirement of debt															1,000,000	2,000,000
Restricted investments used as security for debt instruments																													778,000,000	889,000,000																																																																																			23,000,000	23,000,000							31,000,000	16,000,000
NOK exchange rate			5.73
Weighted-average interest rate (as a percent)																							9.10%	9.10%
Ownership interest in affiliate (as a percent)																																																																																																																									65.00%

Debt (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Scheduled maturities of debt
2013	$ 2,738
2014	269
2015	482
2016	1,597
2017	1,211
Thereafter	7,807
Total debt, excluding unamortized discounts, premiums and fair value adjustments	14,104
Total unamortized discounts, premiums and fair value adjustments	13
Total debt	14,117	13,536
Transocean Ltd. and Subsidiaries
Scheduled maturities of debt
2013	2,710
2014	240
2015	451
2016	1,535
2017	1,175
Thereafter	7,788
Total debt, excluding unamortized discounts, premiums and fair value adjustments	13,899
Total unamortized discounts, premiums and fair value adjustments	13
Total debt	13,912	12,698
Consolidated variable interest entities
Scheduled maturities of debt
2013	28
2014	29
2015	31
2016	62
2017	36
Thereafter	19
Total debt, excluding unamortized discounts, premiums and fair value adjustments	205
Total debt	$ 205	$ 838

Debt (Details 3) (USD $) In Millions, unless otherwise specified	1 Months Ended			1 Months Ended	3 Months Ended	9 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Feb. 29, 2012 1.50% Series B Convertible Senior Notes due December 2037	Sep. 30, 2011 1.50% Series B Convertible Senior Notes due December 2037	Sep. 30, 2011 1.50% Series B Convertible Senior Notes due December 2037	Dec. 31, 2011 1.50% Series B Convertible Senior Notes due December 2037	Sep. 30, 2012 1.50% Series C Convertible Senior Notes due December 2037	Sep. 30, 2011 1.50% Series C Convertible Senior Notes due December 2037	Sep. 30, 2012 1.50% Series C Convertible Senior Notes due December 2037	Sep. 30, 2011 1.50% Series C Convertible Senior Notes due December 2037	Dec. 31, 2011 1.50% Series C Convertible Senior Notes due December 2037
Carrying amounts of Convertible Senior Notes
Convertible debt instrument effective interest rate (as a percent)												5.28%
Remaining period over which discount will be amortized										1 year
Interest expense					$ 21	$ 61		$ 22	$ 21	$ 65	$ 62
Principal amount		14,104					30	1,722		1,722		1,722
Unamortized discount								(13)		(13)		(59)
Total debt		14,117	13,536				30	1,709		1,709		1,663
Carrying amount of equity component							4	276		276		276
Aggregate principal amount of debt repurchased	148			30
Aggregate cash payment made for debt repurchased				$ 30

Derivatives and Hedging (Details)					9 Months Ended							1 Months Ended				3 Months Ended
Derivatives and Hedging (Details)	Sep. 30, 2012 4.95% Senior Notes due November 2015	Sep. 30, 2012 5.25% Senior Notes due March 2013	Sep. 30, 2012 5% Notes due February 2013	Sep. 30, 2012 11% Callable Bonds	Sep. 30, 2012 Derivatives designated as hedging instruments Interest rate swaps subsidiary	Sep. 30, 2012 Derivatives designated as hedging instruments Interest rate swaps Fair value hedges Pay USD ($)	Sep. 30, 2012 Derivatives designated as hedging instruments Interest rate swaps Fair value hedges Receive USD ($)	Sep. 30, 2012 Derivatives designated as hedging instruments Interest rate swaps Cash flow hedges Pay USD ($)	Sep. 30, 2012 Derivatives designated as hedging instruments Interest rate swaps Cash flow hedges Receive USD ($)	Sep. 30, 2012 Derivatives designated as hedging instruments Cross-currency swaps Cash flow hedges Pay USD ($)	Sep. 30, 2012 Derivatives designated as hedging instruments Cross-currency swaps Cash flow hedges Receive NOK	Jun. 29, 2012 Derivative not designated as hedging instruments Interest rate swaps USD ($)	Sep. 30, 2012 Derivative not designated as hedging instruments Forward exchange contract Cash flow hedges NOK	Sep. 30, 2012 Derivative not designated as hedging instruments Forward exchange contract Cash flow hedges Pay USD ($)	Sep. 30, 2012 Derivative not designated as hedging instruments Forward exchange contract Cash flow hedges Receive NOK	Jun. 30, 2012 Derivatives de-designated as hedging instruments Interest rate swaps Fair value hedges USD ($)
Derivatives and Hedging
Number of wholly owned subsidiaries in interest rate swap agreements					2
Interest rate on notes hedged to reduce exposure to changes in fair value (as a percent)	4.95%	5.25%	5.00%	11.00%
Cash proceeds from termination of derivatives												$ 14,000,000				$ 23,000,000
Interest rate description to determine the variable interest on debt hedged					three-month London Interbank Offered Rate
Exchange rate of forward contract													5.40
Aggregate notional amount						$ 750,000,000	$ 750,000,000	$ 403,000,000	$ 403,000,000	$ 102,000,000	560,000,000			$ 1,100,000,000	6,100,000,000
Weighted average fixed rate (as a percent)							5.20%	2.40%		8.90%	11.00%
Weighted average variable rate (as a percent)						3.60%			0.40%

Derivatives and Hedging (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Derivatives designated as hedging instruments \| Interest rate swaps \| Fair value hedges \| Other current assets
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value	$ 6	$ 5
Derivatives designated as hedging instruments \| Interest rate swaps \| Fair value hedges \| Other assets
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value		31
Derivatives designated as hedging instruments \| Interest rate swaps \| Cash flow hedges \| Other long-term liabilities
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value	15	16
Derivatives designated as hedging instruments \| Cross-currency swaps \| Cash flow hedges \| Other current assets
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value	1
Derivatives designated as hedging instruments \| Cross-currency swaps \| Cash flow hedges \| Other long-term liabilities
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value	3	7
Nondesignated \| Interest rate swaps \| Other long-term liabilities
Derivatives designated as hedging and not designated as hedging instruments
Derivatives at fair value		$ 15

Derivatives and Hedging (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Effect on statement of operations resulting from changes in the fair values of derivatives designated as cash flow hedges
Payment for settlement of forward exchange contract		$ (78)		$ (78)
Derivatives designated as hedging instruments \| Interest rate swaps \| Interest expense, net of amounts capitalized
Effect on statement of operations resulting from changes in the fair values of derivatives designated as cash flow hedges
Loss associated with effective portion	(1)	(3)	(4)	(8)
Derivatives designated as hedging instruments \| Interest rate swaps \| Other, net
Effect on statement of operations resulting from changes in the fair values of derivatives designated as cash flow hedges
Gain associated with effective portion	4		4
Nondesignated \| Interest rate swaps \| Interest expense, net of amounts capitalized
Effect on statement of operations resulting from changes in the fair values of derivatives designated as cash flow hedges
Loss on the termination of not designated derivative instruments			(1)
Nondesignated \| Forward exchange contract \| Other, net
Effect on statement of operations resulting from changes in the fair values of derivatives designated as cash flow hedges
Loss on the termination of not designated derivative instruments		(78)		(78)
Payment for settlement of forward exchange contract		$ 78		$ 78

Postemployment Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net periodic benefit costs, before tax
Service cost	$ 21	$ 14	$ 61	$ 47
Interest cost	20	21	63	62
Expected return on plan assets	(20)	(20)	(64)	(64)
Settlements and curtailments	19	1	21	2
Actuarial losses, net	12	7	34	19
Prior service cost, net	(1)		(2)	(2)
Transition obligation, net		(1)
Net periodic benefit costs	51	22	113	64
Funding contributions	12	9	134	93
U.S. Plans
Net periodic benefit costs, before tax
Service cost	13	10	37	32
Interest cost	15	15	44	44
Expected return on plan assets	(16)	(15)	(47)	(47)
Settlements and curtailments		1	2	2
Actuarial losses, net	11	5	31	17
Prior service cost, net			(1)	(1)
Net periodic benefit costs	23	16	66	47
Funding contributions	1	1	104	69
Non-U.S. Plans
Net periodic benefit costs, before tax
Service cost	7	4	23	14
Interest cost	4	5	17	16
Expected return on plan assets	(4)	(5)	(17)	(17)
Settlements and curtailments	19		19
Actuarial losses, net	1	2	3	2
Prior service cost, net	(1)	1	(1)	1
Transition obligation, net		(1)
Net periodic benefit costs	26	6	44	16
Funding contributions	10	7	27	20
OPEB Plans
Net periodic benefit costs, before tax
Service cost	1		1	1
Interest cost	1	1	2	2
Prior service cost, net		(1)		(2)
Net periodic benefit costs	2		3	1
Funding contributions	$ 1	$ 1	$ 3	$ 4

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012 item
Purchase obligations
Number of Shipyard Contracts for Ultra-Deepwater Drillships	4
New builds
Future Purchase obligations
2013	$ 632
2014	1,387
2015	224
2016	621
2017	617
Total	$ 3,481

Commitments and Contingencies (Details 2)	3 Months Ended								9 Months Ended				9 Months Ended		1 Months Ended										3 Months Ended	9 Months Ended						1 Months Ended				9 Months Ended
Commitments and Contingencies (Details 2)	Sep. 30, 2012 Macondo well incident USD ($)	Dec. 31, 2011 Macondo well incident USD ($)	Apr. 22, 2010 Macondo well incident person mile	Sep. 30, 2012 Macondo well incident Insurance coverage claim	Apr. 22, 2010 Macondo well incident Insurance coverage USD ($)	Sep. 30, 2012 Macondo well incident Wrongful death and personal injury lawsuit	Sep. 30, 2012 Macondo well incident Economic loss lawsuit	Jun. 30, 2010 Macondo well incident Shareholder derivative claims lawsuit	Sep. 30, 2012 Macondo well incident U.S. Department of Justice claims USD ($)	Dec. 15, 2010 Macondo well incident U.S. Department of Justice claims USD ($) bbl	Sep. 30, 2012 Macondo well incident Wreck removal USD ($)	Sep. 30, 2012 Macondo well incident Contractual indemnity USD ($)	Sep. 30, 2012 Macondo well incident Notices of alleged non-compliance note	May 05, 2010 Macondo well incident State and other government claims item	Jul. 31, 2012 Brazil Frade field incident	May 31, 2012 Brazil Frade field incident judge	Apr. 30, 2012 Brazil Frade field incident USD ($)	Apr. 30, 2012 Brazil Frade field incident BRL	Mar. 31, 2012 Brazil Frade field incident BRL	Dec. 31, 2011 Brazil Frade field incident USD ($)	Dec. 31, 2011 Brazil Frade field incident BRL	Mar. 21, 2012 Brazil Frade field incident entity	Mar. 15, 2012 Brazil Frade field incident liters meter kilometers	Dec. 21, 2011 Brazil Frade field incident employee individual count	Sep. 30, 2012 Asbestos litigation USD ($) lawsuit subsidiary plaintiff	Sep. 30, 2012 Asbestos litigation USD ($) lawsuit plaintiff subsidiary	Sep. 30, 2006 Rio de Janeiro tax assessment USD ($) subsidiary	Sep. 30, 2006 Rio de Janeiro tax assessment BRL	Dec. 31, 2010 Brazilian import license assessment USD ($) subsidiary	Dec. 31, 2010 Brazilian import license assessment BRL	Sep. 30, 2012 Hazardous waste disposal sites subsidiary	Jul. 31, 2005 Contamination litigation defendant	Sep. 30, 2012 Contamination litigation USD ($)	Jul. 11, 2005 Contamination litigation subsidiary landowner	Sep. 30, 2012 Retained risk USD ($)	Sep. 30, 2012 Letters of credit and surety bonds USD ($)	Dec. 31, 2011 Letters of credit and surety bonds USD ($)
Contingencies
Number of persons declared dead			11
Number of miles Deepwater Horizon was off coast of Louisiana			41
Estimated liability recorded based on probable losses related to the rig explosion and fire incident	$ 1,900,000,000	$ 1,200,000,000
Proceeds from insurance recoveries	15,000,000
Proceeds from insuranced received by third party	57,000,000
Portion of liability related to the rig explosion and fire incident recoverable from insurance	179,000,000	233,000,000
Percentage of non-operating interest of Anadarko in the Macondo well	25.00%
Percentage of non-operating interest of MOEX in the Macondo well	10.00%
Insured status under excess liability insurance program					950,000,000
Deductible amount under excess liability insurance program					15,000,000
Amount covered by fifth layer of excess liability insurance program					250,000,000
Amount covered by third layer of excess liability insurance program					200,000,000
Amount covered by fourth layer of excess liability insurance program					200,000,000
Amount covered by second layer of excess liability insurance program					150,000,000
Amount covered by first layer of excess liability insurance program					150,000,000
Amount covered by self insured layer of excess liability insurance program					50,000,000
Number of actions or claims that were pending				374		9	155	2																	21	21
Number of putative class action complaints filed alleging, among other things, economic losses as a result of environmental pollution arising out of the Macondo well incident (in lawsuits)							179
Civil penalties per barrel, Maximum (in dollars per barrel)										1,100
Civil penalties per barrel for gross negligence or willful misconduct, Maximum (in dollars per barrel)										4,300
U.S. government's maximum estimate of barrels of oil discharged and subject to penalties										4,100,000
Litigation settlement									1,500,000,000
Percentage of asset value covered											25.00%
Amount agreed to indemnify and defend operator of rig												15,000,000
Area of fissure of which seepage is noted																							800
Distance from the November incident																							3
Volume of seepage																							5
Amount sought under civil public action by a federal prosecutor in Brazilian town of Campos in Rio de Janeiro State																	10,000,000,000	20,000,000,000		10,000,000,000	20,000,000,000
Number of judges																3
Number of individuals for whom indictment recommended under investigation report filed																								17
Number of the entity's employees for whom indictment recommended under investigation report filed																								5
Number of counts on which indictment recommended under investigation report filed																								4
Number of counts alleging environmental offenses on which indictment recommended under investigation report filed																								3
Number of counts alleging false statements by Chevron, on which indictment recommended under investigation report filed																								1
Number of companies for whom indictment recommended under investigation report filed																						2
Bail amount requested by federal prosecutor in Brazilian town of Campos In Rio De Janerio State from companies																			10,000,000
Bail amount requested by federal prosecutor in Brazilian town of Campos In Rio De Janerio State from individuals																			1,000,000
Term of preliminary injunction from the date of service															30 days
Amount excludable per occurrence, claim arising from negligence																				250,000
Number of plaintiffs covered by complaints filed in 2004 in Mississippi regarding asbestos litigation																										769
Number of total cases in which there may be an indirect interest regarding asbestos litigation (in lawsuits)																									26	26
Number of cases being governed for discovery and trial setting and in which the Company is named defendant																									14	14
Number of cases in which ruling has now been obtained and the Company cannot be sued for punitive damages																									3	3
Number of cases gone to trial against defendants who allegedly manufactured or distributed drilling mud additives																										7
Number of cases gone to trial against defendants, resulting in defense verdict																										2
Number of cases gone to trial against defendants, ended with hung jury																										1
Number of cases gone to trial against defendants, resulting in verdict for the plaintiff																										4
Number of cases resulting in substantial verdict in favor of the plaintiff																										2
Number of cases resulting in substantial verdict in favor of the plaintiff vacated on basis failure to meet burden of proof																									1
Number of cases resulting in substantial verdict in favor of the plaintiff vacated as a result of presiding judge being removed from hearing due to conflict of interest																									1
Number of remaining plaintiff verdicts are under appeal by the defendants																										2
Number of subsidiaries involved in lawsuits arising from design, construction and refurbishment of major industrial complexes																									1	1
Number of lawsuits alleging personal injury from asbestos exposure for subsidiary involved in design, construction and refurbishment of major industrial complexes																									895	895
Estimated number of plaintiffs in lawsuits alleging personal injury from asbestos exposure for subsidiary involved in design, construction and refurbishment of major industrial complexes																									1,977	1,977
Insurance limits potentially available for damages in lawsuits regarding personal injury from asbestos exposure for subsidiary involved in design, construction and refurbishment of major industrial																									1,000,000,000	1,000,000,000
Tax assessment from state tax authorities																											185,000,000	376,000,000	236,000,000	480,000,000
Number of subsidiaries involved in tax assessment relating to import license																											1	1
Number of subsidiaries involved in federal tax assessment relating to import license																													1	1
Percentage of liability for remediation and related costs																															8.00%
Number of subsidiaries ordered by California Regional Water Quality Control Board to develop testing plan for Alhambra, California site																															1
Minimum number of subsidiaries likely to be named potentially responsible party by US Environmental Protection Agency for superfund site (in counts)																															1
Number of subsidiaries served with a lawsuit																																		1
Number of landowners who filed a lawsuit																																		3
Number of other defendants involved in lawsuit																																19
Amount claimed by plaintiffs' experts as required remediation costs																																	300,000,000
Amount claimed by defendants' experts as required remediation costs																																	2,500,000
Asset value covered by wreck removal insurance											140,000,000
Aggregate value of drilling rig fleet																																			30,200,000,000
Per occurrence insurance deductible on hull and machinery																																			125,000,000
Maximum aggregate insurance deductible on hull and machinery per year																																			200,000,000
Maximum percentage of asset insured value covered by damage mitigation insurance																																			25.00%
Maximum percentage of rig's insured value covered by wreck removal insurance																																			25.00%
Commercial market excess liability coverage																																			775,000,000
Per occurrence deductible on crew personal injury liability and collision liability claims																																			10,000,000
Per occurrence deductible on other third-party non-crew claims																																			5,000,000
Aggregate per occurrence deductible on other third party non-crew claims																																			50,000,000
Liability loss limit for commercial market excess liability coverage																																			825,000,000
Additional insurance that covers expenses that would otherwise be assumed by the well owner																																			100,000,000
Maximum liability amount for well control and re-drilling liability related to blowouts																																			50,000,000
Outstanding letters of credit																																				556,000,000	650,000,000
Letters of credit issued under committed and uncommitted credit lines																																				116,000,000
Term of letters of credit																																				3 years
Surety bonds outstanding																																				$ 12,000,000	$ 12,000,000
Notices of alleged non-compliance
Number of notices issued by the Department of the Interior's Bureau of Safety and Environmental Enforcement													4
Number of Gulf Coast states Attorneys General seeking recovery of clean up costs and damages														5

Redeemable Noncontrolling Interest (Details) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	9 Months Ended
	May 31, 2012	Sep. 30, 2012	Sep. 30, 2011	Aug. 31, 2012
Redeemable Noncontrolling Interest
Adjustment to retained earnings within shareholders' equity		$ 106
Adjustment to increase the liability	25
Issuance of shares in exchange for noncontrolling interest	8,695,351
Adjustment to share capital	134
Adjustment to additional paid in capital	233
Extinguishment of TPDI Notes payable	148
Accrued and unpaid interest	16
Percentage of TPDI's working capital	50.00%
Final Cash Settlement for Noncontrolling Interest				72
Percentage interest in joint venture (TPDI) that is held by an unaffiliated party (Quantum)				50.00%
Redeemable noncontrolling interest
Balance, beginning of period		116	41
Net income attributable to noncontrolling interest		13	36
Other comprehensive loss attributable to noncontrolling interest			(6)
Fair value adjustment of redeemable noncontrolling interest		106
Reclassification to accumulated other comprehensive loss		17
Reclassification to other current liabilities		(252)
Balance, end of period			$ 71

Shareholders' Equity (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended			3 Months Ended	9 Months Ended
	Aug. 31, 2011	May 31, 2011 installment	Dec. 31, 2008 subsidiary	Sep. 30, 2011 installment	Sep. 30, 2012	Sep. 30, 2011 installment	Dec. 31, 2011
Distribution of qualifying additional paid-in capital
Cash distribution approved in the form of additional paid-in capital (in dollars per share)		$ 3.16
Number of quarterly installments (in installments)		4
Amount of installment (in dollars per share)		$ 0.79
Number of installments paid (in installments)				2		2
Installment of dividend paid	$ 508	$ 508		$ 254	$ 278	$ 508
Shares held by subsidiary
Number of issued shares to a subsidiary to satisfy obligations in connection with awards granted under incentive plans or other rights to acquire shares of stocks			16
Number of subsidiaries to whom shares were issued			1
Number of shares held by subsidiary					12		12

Shareholders' Equity (Details 2) (USD $) In Millions, unless otherwise specified	9 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended				3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012 Unrecognized components of net periodic benefit costs	Sep. 30, 2011 Unrecognized components of net periodic benefit costs	Sep. 30, 2012 Unrecognized components of net periodic benefit costs	Sep. 30, 2011 Unrecognized components of net periodic benefit costs	Sep. 30, 2012 Unrecognized gains (losses) on derivative investments	Sep. 30, 2011 Unrecognized gains (losses) on derivative investments	Sep. 30, 2012 Unrecognized gains (losses) on derivative investments	Sep. 30, 2011 Unrecognized gains (losses) on derivative investments	Sep. 30, 2011 Unrecognized gains (losses) on marketable securities	Sep. 30, 2011 Unrecognized gains (losses) on marketable securities	Sep. 30, 2012 Unrecognized gains (losses) on marketable securities	Jun. 30, 2012 Unrecognized gains (losses) on marketable securities	Dec. 31, 2011 Unrecognized gains (losses) on marketable securities	Sep. 30, 2012 Accumulated other comprehensive income (loss), Total	Sep. 30, 2011 Accumulated other comprehensive income (loss), Total	Sep. 30, 2012 Accumulated other comprehensive income (loss), Total	Sep. 30, 2011 Accumulated other comprehensive income (loss), Total
Changes in accumulated other comprehensive income
Accumulated other comprehensive loss, balance beginning of period	$ (496)	$ (506)	$ (331)	$ (501)	$ (335)	$ (8)	$ 5	$ 7	$ 5	$ (2)	$ (2)	$ (2)	$ (2)	$ (2)	$ (516)	$ (328)	$ (496)	$ (332)
Reclassification from redeemable noncontrolling interest	(17)							(17)									(17)
Other comprehensive income (loss) attributable to controlling interest		6	3	1	7	(2)	1		1	(14)	(14)				4	(10)	1	(6)
Accumulated other comprehensive loss, balance end of period	$ (512)	$ (500)	$ (328)	$ (500)	$ (328)	$ (10)	$ 6	$ (10)	$ 6	$ (16)	$ (16)	$ (2)	$ (2)	$ (2)	$ (512)	$ (338)	$ (512)	$ (338)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14

-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14A

-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 31

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 15D

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 14, 17, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

+ Details

- Definition

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 20

-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569643-111683

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 19

-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 29

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 1A

-Subparagraph (c)(3)

-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

+ Details

Financial Instruments (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Carrying amount
Financial instruments
Cash and cash equivalents	$ 6,001,000,000	$ 4,017,000,000
Notes receivable and working capital loan receivable	111,000,000	139,000,000
Restricted cash investments	835,000,000	934,000,000
Long-term debt, including current maturities	13,912,000,000	12,698,000,000
Derivative instruments, assets	7,000,000	36,000,000
Derivative instruments, liabilities	18,000,000	38,000,000
Debt
Fixed rate debt	13,300,000,000	11,900,000,000
Variable-rate debt	591,000,000	761,000,000
Carrying amount \| Other current assets
Financial instruments
Notes receivable and working capital loan receivable	11,000,000	37,000,000
Carrying amount \| Other assets
Financial instruments
Notes receivable and working capital loan receivable	100,000,000	102,000,000
Carrying amount \| TPDI and ADDCL Credit Facilities
Financial instruments
Restricted cash investments	60,000,000	45,000,000
Carrying amount \| Aker Drilling
Financial instruments
Restricted cash investments	775,000,000	889,000,000
Carrying amount \| Consolidated Variable Interest Entities
Financial instruments
Long-term debt of consolidated variable interest entities, including current maturities	205,000,000	838,000,000
Fair value
Financial instruments
Cash and cash equivalents	6,001,000,000	4,017,000,000
Notes receivable and working capital loan receivable	111,000,000	139,000,000
Restricted cash investments	882,000,000	975,000,000
Fair value \| Level 2
Financial instruments
Long-term debt, including current maturities	15,550,000,000	13,074,000,000
Derivative instruments, assets	7,000,000	36,000,000
Derivative instruments, liabilities	18,000,000	38,000,000
Debt
Fixed rate debt	15,000,000,000	12,200,000,000
Variable-rate debt	205,000,000	838,000,000
Fair value \| Level 2 \| Aker Drilling
Financial instruments
Restricted cash investments	822,000,000	930,000,000
Fair value \| Level 2 \| Consolidated Variable Interest Entities
Financial instruments
Long-term debt of consolidated variable interest entities, including current maturities	$ 205,000,000	$ 838,000,000

Condensed Consolidating Financial Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Condensed Consolidating Financial Information
Operating revenues	$ 2,440	$ 1,991	$ 6,918	$ 5,972
Cost and expenses	1,687	1,692	5,794	4,936
Loss on impairment			(210)
Gain (loss) on disposal of assets, net	50	(1)	40	(1)
Operating income (loss)	803	298	954	1,035
Other income (expense), net
Interest expense, net	(165)	(144)	(500)	(416)
Equity in earnings		14		18
Other, net	(8)	(91)	(32)	(97)
Total other income (expense), net	(173)	(221)	(532)	(495)
Income (loss) from continuing operations before income tax expense	630	77	422	540
Income tax expense	104	93	96	211
Income (loss) from continuing operations	526	(16)	326	329
Income (loss) from discontinued operations, net of tax	(909)	(5)	(994)	116
Net income (loss)	(383)	(21)	(668)	445
Net income attributable to noncontrolling interest	(2)	11	7	34
Net income (loss) attributable to controlling interest	(381)	(32)	(675)	411
Other comprehensive income (loss) before income taxes	3	(15)	2	(11)
Income taxes related to other comprehensive income (loss)	1		(1)	(2)
Other comprehensive income (loss), net of income taxes	4	(15)	1	(13)
Total comprehensive income (loss)	(379)	(36)	(667)	432
Total comprehensive loss attributable to noncontrolling interest	(2)	6	7	27
Total comprehensive income (loss) attributable to controlling interest	(377)	(42)	(674)	405
Five Year Revolving Credit Facility
Condensed Consolidating Financial Information
Term of revolving credit facility			5 years
Parent Guarantor
Condensed Consolidating Financial Information
Cost and expenses	3	10	35	34
Operating income (loss)	(3)	(10)	(35)	(34)
Other income (expense), net
Interest expense, net	(3)	(4)	(10)	(4)
Equity in earnings	(375)	(18)	(630)	450
Other, net				(1)
Total other income (expense), net	(378)	(22)	(640)	445
Income (loss) from continuing operations before income tax expense	(381)	(32)	(675)	411
Income (loss) from continuing operations	(381)	(32)	(675)	411
Net income (loss)	(381)	(32)	(675)	411
Net income (loss) attributable to controlling interest	(381)	(32)	(675)	411
Other comprehensive income (loss) before income taxes	(3)	(3)	(7)	(4)
Other comprehensive income (loss), net of income taxes	(3)	(3)	(7)	(4)
Total comprehensive income (loss)	(384)	(35)	(682)	407
Total comprehensive income (loss) attributable to controlling interest	(384)	(35)	(682)	407
Subsidiary Issuer
Condensed Consolidating Financial Information
Cost and expenses	2	1	4	3
Operating income (loss)	(2)	(1)	(4)	(3)
Other income (expense), net
Interest expense, net	(149)	(125)	(422)	(386)
Equity in earnings	(223)	83	(239)	854
Other, net	(5)	28	4	(4)
Total other income (expense), net	(377)	(14)	(657)	464
Income (loss) from continuing operations before income tax expense	(379)	(15)	(661)	461
Income (loss) from continuing operations	(379)	(15)	(661)	461
Net income (loss)	(379)	(15)	(661)	461
Net income (loss) attributable to controlling interest	(379)	(15)	(661)	461
Other comprehensive income (loss) before income taxes	7	4	7	2
Other comprehensive income (loss), net of income taxes	7	4	7	2
Total comprehensive income (loss)	(372)	(11)	(654)	463
Total comprehensive income (loss) attributable to controlling interest	(372)	(11)	(654)	463
Other Subsidiaries
Condensed Consolidating Financial Information
Operating revenues	2,446	1,995	6,935	5,985
Cost and expenses	1,688	1,685	5,772	4,912
Loss on impairment			(210)
Gain (loss) on disposal of assets, net	50	(1)	40	(1)
Operating income (loss)	808	309	993	1,072
Other income (expense), net
Interest expense, net	(13)	(15)	(68)	(26)
Equity in earnings		14		18
Other, net	(3)	(119)	(36)	(92)
Total other income (expense), net	(16)	(120)	(104)	(100)
Income (loss) from continuing operations before income tax expense	792	189	889	972
Income tax expense	104	93	96	211
Income (loss) from continuing operations	688	96	793	761
Income (loss) from discontinued operations, net of tax	(909)	(5)	(994)	116
Net income (loss)	(221)	91	(201)	877
Net income attributable to noncontrolling interest	(2)	11	7	34
Net income (loss) attributable to controlling interest	(219)	80	(208)	843
Other comprehensive income (loss) before income taxes	(1)	(16)	2	(9)
Income taxes related to other comprehensive income (loss)	1		(1)	(2)
Other comprehensive income (loss), net of income taxes		(16)	1	(11)
Total comprehensive income (loss)	(221)	75	(200)	866
Total comprehensive loss attributable to noncontrolling interest	(2)	6	7	27
Total comprehensive income (loss) attributable to controlling interest	(219)	69	(207)	839
Consolidating adjustments
Condensed Consolidating Financial Information
Operating revenues	(6)	(4)	(17)	(13)
Cost and expenses	(6)	(4)	(17)	(13)
Other income (expense), net
Equity in earnings	598	(65)	869	(1,304)
Total other income (expense), net	598	(65)	869	(1,304)
Income (loss) from continuing operations before income tax expense	598	(65)	869	(1,304)
Income (loss) from continuing operations	598	(65)	869	(1,304)
Net income (loss)	598	(65)	869	(1,304)
Net income (loss) attributable to controlling interest	598	(65)	869	(1,304)
Total comprehensive income (loss)	598	(65)	869	(1,304)
Total comprehensive income (loss) attributable to controlling interest	$ 598	$ (65)	$ 869	$ (1,304)

Condensed Consolidating Financial Information (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 6,001	$ 3,964	$ 4,017	$ 3,246	$ 3,349	$ 3,354
Other current assets	4,303		3,519
Total current assets	10,304		7,536
Property and equipment, net	20,459		20,788
Goodwill	2,987		3,217
Other assets	1,562		3,491
Total assets	35,312		35,032
Liabilities and equity
Debt due within one year	2,729		2,187
Other current liabilities	3,972		3,341
Total current liabilities	6,701		5,528
Long-term debt	11,388		11,349
Other long-term liabilities	1,967		2,412
Total long-term liabilities	13,355		13,761
Commitments and contingencies
Redeemable noncontrolling interest			116	71		41
Total equity	15,256		15,627	20,794		21,340
Total liabilities and equity	35,312		35,032
Parent Guarantor
Assets
Cash and cash equivalents	9		3	1		38
Other current assets	17		8
Total current assets	26		11
Property and equipment, net	1		1
Investment in affiliates	15,926		16,439
Total assets	15,953		16,451
Liabilities and equity
Other current liabilities	78		294
Total current liabilities	78		294
Long-term debt	568		495
Other long-term liabilities	35		25
Total long-term liabilities	603		520
Commitments and contingencies
Total equity	15,272		15,637
Total liabilities and equity	15,953		16,451
Subsidiary Issuer
Assets
Cash and cash equivalents	4,029		2,793	536		2,041
Other current assets	2,748		784
Total current assets	6,777		3,577
Investment in affiliates	26,469		27,518
Other assets	1,797		1,368
Total assets	35,043		32,463
Liabilities and equity
Debt due within one year	2,212		1,693
Other current liabilities	324		367
Total current liabilities	2,536		2,060
Long-term debt	17,192		14,308
Other long-term liabilities	392		439
Total long-term liabilities	17,584		14,747
Commitments and contingencies
Total equity	14,923		15,656
Total liabilities and equity	35,043		32,463
Other Subsidiaries
Assets
Cash and cash equivalents	1,963		1,221	2,709		1,275
Other current assets	3,377		4,476
Total current assets	5,340		5,697
Property and equipment, net	20,458		20,787
Goodwill	2,987		3,217
Other assets	19,315		20,799
Total assets	48,100		50,500
Liabilities and equity
Debt due within one year	517		494
Other current liabilities	5,409		4,429
Total current liabilities	5,926		4,923
Long-term debt	13,178		15,222
Other long-term liabilities	1,540		1,948
Total long-term liabilities	14,718		17,170
Commitments and contingencies
Redeemable noncontrolling interest			116
Total equity	27,456		28,291
Total liabilities and equity	48,100		50,500
Consolidating adjustments
Assets
Other current assets	(1,839)		(1,749)
Total current assets	(1,839)		(1,749)
Investment in affiliates	(42,395)		(43,957)
Other assets	(19,550)		(18,676)
Total assets	(63,784)		(64,382)
Liabilities and equity
Other current liabilities	(1,839)		(1,749)
Total current liabilities	(1,839)		(1,749)
Long-term debt	(19,550)		(18,676)
Total long-term liabilities	(19,550)		(18,676)
Commitments and contingencies
Total equity	(42,395)		(43,957)
Total liabilities and equity	$ (63,784)		$ (64,382)

Condensed Consolidating Financial Information (Details 3) (USD $) In Millions, unless otherwise specified	1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 31, 2011	May 31, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Condensed Consolidating Financial Information
Cash flows from operating activities			$ 786	$ 492	$ 1,785	$ 1,222
Cash flows from investing activities
Capital expenditures			(201)	(124)	(646)	(633)
Capital expenditures for discontinued operations			(24)	(13)	(75)	(37)
Investment in marketable security				(199)		(199)
Proceeds from disposal of assets, net			178	4	189	12
Proceeds from disposal of discontinued operations, net			5	84	196	353
Payment for settlement of forward exchange contract, net				(78)		(78)
Other, net			7	6	32	(27)
Net cash used in investing activities			(35)	(320)	(304)	(609)
Cash flows from financing activities
Changes in short-term borrowings, net				2	(260)	58
Proceeds from debt			1,493		1,493	5
Repayments of debt			(264)	(23)	(584)	(272)
Proceeds from restricted cash investments			106		298
Deposits to restricted cash investments			(42)		(158)
Distribution of qualifying additional paid-in capital	(508)	(508)		(254)	(278)	(508)
Other, net					(8)	(4)
Net cash provided by (used in) financing activities			1,286	(275)	503	(721)
Net increase (decrease) in cash and cash equivalents			2,037	(103)	1,984	(108)
Cash and cash equivalents at beginning of period			3,964	3,349	4,017	3,354
Cash and cash equivalents at end of period			6,001	3,246	6,001	3,246
Parent Guarantor
Condensed Consolidating Financial Information
Cash flows from operating activities					(58)	(41)
Cash flows from investing activities
Investing activities with affiliates, net					(165)	(875)
Net cash used in investing activities					(165)	(875)
Cash flows from financing activities
Distribution of qualifying additional paid-in capital					(278)	(508)
Financing activities with affiliates, net					523	1,387
Other, net					(16)
Net cash provided by (used in) financing activities					229	879
Net increase (decrease) in cash and cash equivalents					6	(37)
Cash and cash equivalents at beginning of period					3	38
Cash and cash equivalents at end of period			9	1	9	1
Subsidiary Issuer
Condensed Consolidating Financial Information
Cash flows from operating activities					(842)	(397)
Cash flows from investing activities
Investing activities with affiliates, net					(1,986)	(1,333)
Other, net					24	(29)
Net cash used in investing activities					(1,962)	(1,362)
Cash flows from financing activities
Changes in short-term borrowings, net						58
Proceeds from debt					1,493	5
Repayments of debt					(30)	(177)
Financing activities with affiliates, net					2,577	371
Other, net						(3)
Net cash provided by (used in) financing activities					4,040	254
Net increase (decrease) in cash and cash equivalents					1,236	(1,505)
Cash and cash equivalents at beginning of period					2,793	2,041
Cash and cash equivalents at end of period			4,029	536	4,029	536
Other Subsidiaries
Condensed Consolidating Financial Information
Cash flows from operating activities					2,685	1,660
Cash flows from investing activities
Capital expenditures					(646)	(633)
Capital expenditures for discontinued operations					(75)	(37)
Investment in marketable security						(199)
Proceeds from disposal of assets, net					189	12
Proceeds from disposal of discontinued operations, net					196	353
Payment for settlement of forward exchange contract, net						(78)
Investing activities with affiliates, net					(3,027)	(1,021)
Other, net					8	2
Net cash used in investing activities					(3,355)	(1,601)
Cash flows from financing activities
Changes in short-term borrowings, net					(260)
Repayments of debt					(554)	(95)
Proceeds from restricted cash investments					298
Deposits to restricted cash investments					(158)
Financing activities with affiliates, net					2,078	1,471
Other, net					8	(1)
Net cash provided by (used in) financing activities					1,412	1,375
Net increase (decrease) in cash and cash equivalents					742	1,434
Cash and cash equivalents at beginning of period					1,221	1,275
Cash and cash equivalents at end of period			1,963	2,709	1,963	2,709
Consolidating adjustments
Cash flows from investing activities
Investing activities with affiliates, net					5,178	3,229
Net cash used in investing activities					5,178	3,229
Cash flows from financing activities
Financing activities with affiliates, net					(5,178)	(3,229)
Net cash provided by (used in) financing activities					$ (5,178)	$ (3,229)

Subsequent Events (Details) (USD $)	9 Months Ended
Subsequent Events (Details) (USD $)	Sep. 30, 2012 item
Subsequent Events \| Norway Tax Investigations
Subsequent Events
Number of subsidiaries against which advisory opinion have been issued	1
Subsequent Events \| Three Year Secured Revolving Credit Facility
Subsequent Events
Borrowing capacity, maximum	$ 900,000,000
Term of facility	3 years
Basis of variable interest rate	LIBOR
Maximum debt to tangible capitalization ratio, numerator	0.6
Maximum debt to tangible capitalization ratio, denominator	1
Subsequent Events \| Three Year Secured Revolving Credit Facility \| Minimum
Subsequent Events
Spread on variable rate basis (as a percent)	0.875%
Commitment fee percentage at period end	0.125%
Subsequent Events \| Three Year Secured Revolving Credit Facility \| Maximum
Subsequent Events
Spread on variable rate basis (as a percent)	2.50%
Commitment fee percentage at period end	0.50%
Drilling Fleet /Standard Jackups GSF Rig 103
Subsequent Events
Carrying value of drilling fleet assets reclassified to assets held for sale	$ 9,000,000