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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (date of earliest event reported): February 18, 2020

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TRANSOCEAN LTD.

(Exact name of registrant as specified in its charter)

Switzerland

001-38373

98-0599916

(State or other jurisdiction of incorporation or organization)

(Commission file number)

(I.R.S. Employer Identification No.)

Turmstrasse 30

Steinhausen, Switzerland

6312

(Address of principal executive offices)

(Zip Code)

+41 (41) 749-0500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Shares, CHF 0.10 par value

RIG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 7.01. Regulation FD Disclosure

Furnished as Exhibit 99.1 to this Current Report on Form 8-K is the Company’s consolidated Swiss statutory financial statements, which comprise the consolidated balance sheets as of December 31, 2019 and 2018 and the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows and notes thereto for each of the three years in the period ended December 31, 2019, which financial statements and reports thereon are incorporated herein by reference.

Furnished as Exhibit 99.2 to this Current Report on Form 8-K is the Company’s standalone Swiss statutory financial statements, which comprise the statement of operations, balance sheet and notes for the year ended December 31, 2019, which financial statements and reports thereon are incorporated herein by reference.

The information in this Current Report on Form 8-K is being “furnished” pursuant to Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any Company filing, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(d)  Exhibits

The exhibits to this report furnished pursuant to Item 9.01 are as follows:

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

TRANSOCEAN LTD.

Date: February 18, 2020

By

/s/ Brady Long

Brady Long

Authorized Person

rig_EX99_1

 

Exhibit 99.1

 

 

 

 

 

 

 

 

 

TRANSOCEAN LTD.

 

 

STATUTORY CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2019,  2018 and 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THIS PAGE INTENTIONALLY LEFT BLANK

 

 

 

Picture 5

 

 

 

Ernst & Young Ltd

Maagplatz 1

P.O. Box

8005 Zurich

Phone: +41 58 286 86 86

Fax: +41 58 286 30 04

www.ey.com/ch

 

 

 

To the General Meeting of 

Transocean Ltd., Steinhausen

Zurich, February 18, 2020

 

Report of the statutory auditor on the consolidated financial statements

Opinion

As statutory auditor, we have audited the consolidated financial statements of Transocean Ltd. and its subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2019 and 2018, and the related consolidated statements of operations, comprehensive loss, equity, cash flows, and notes to the consolidated financial statements for each of the three years in the period ended December 31, 2019 (pages AR-3 – AR-36).  In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2019 and 2018, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in accordance with U.S. generally accepted accounting principles and comply with Swiss law.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles and the requirements of Swiss law.  This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.  The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits.  We are a public accounting firm and are required to be independent with respect to the Company.  We conducted our audits in accordance with Swiss law, Swiss Auditing Standards and the standards of the Public Company Accounting Oversight Board (United States) (PCAOB).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to fraud or error.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.  The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.  In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control system.  An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.  The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

AR-1

 

 

 

 

 

 

Income Taxes

Description of the Matter

 

As discussed in Notes 2 and 12 to the consolidated financial statements, the Company operates in multiple jurisdictions through a complex operating structure and is subject to applicable tax laws, treaties or regulations in each jurisdiction where it operates.  The Company’s provision for income taxes is based on the tax laws and rates applicable in each jurisdiction.  The Company recognizes tax benefits they believe are more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the position.

Auditing management’s provision for income taxes and related deferred taxes is complex because of the Company’s multi-national operating structure.  In addition, a higher degree of auditor judgment was required to evaluate the Company’s deferred tax provision as a result of the Company’s interpretation of tax law in each jurisdiction across its multiple subsidiaries.

How We Addressed the Matter in Our Audit

 

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s income tax provision process, including controls over management’s review of the identification and valuation of deferred income taxes and changes in tax laws and regulations that may impact the Company’s deferred income tax provision.

Our audit procedures also included, among others, (i) obtaining an understanding of the Company’s overall tax structure, evaluating changes in the Company’s tax structure that occurred during the year as well as changes in tax law, and assessing the interpretation of those changes under the relevant jurisdiction’s tax law; (ii) utilizing tax resources with appropriate knowledge of local jurisdictional laws and regulations; (iii) evaluating the completeness and accuracy of deferred income taxes, and (iv) assessing the reasonableness of the Company’s valuation allowance on deferred tax assets, including projections of taxable income from the future reversal of existing taxable temporary differences. 

 

Report on other legal requirements

We are a public accounting firm registered with the Swiss Federal Audit Oversight Authority (FAOA) and the PCAOB and we confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA).  We are independent with respect to the Company in accordance with Swiss law (article 728 CO and article 11 AOA) and U.S. federal securities laws as well as the applicable rules and regulations of the Swiss audit profession, the U.S. Securities and Exchange Commission and the PCAOB, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

We have served as the Company’s auditor since 2008.

 

Ernst & Young Ltd

 

 

 

/s/ Reto Hofer

 

/s/ Ralph Petermann

Licensed audit expert

 

Certified public accountant

(Auditor in charge)

 

 

 

 

 

 

AR-2

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

 

 

2019

    

2018

    

2017

  

 

 

 

 

 

 

 

 

 

 

 

Contract drilling revenues

 

$

3,088

 

$

3,018

 

$

2,731

 

Other revenues

 

 

 —

 

 

 —

 

 

242

 

 

 

 

3,088

 

 

3,018

 

 

2,973

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Operating and maintenance

 

 

2,140

 

 

1,799

 

 

1,389

 

Depreciation and amortization

 

 

855

 

 

818

 

 

832

 

General and administrative

 

 

193

 

 

188

 

 

156

 

 

 

 

3,188

 

 

2,805

 

 

2,377

 

Loss on impairment

 

 

(609)

 

 

(1,464)

 

 

(1,498)

 

Loss on disposal of assets, net

 

 

(12)

 

 

 —

 

 

(1,603)

 

Operating loss

 

 

(721)

 

 

(1,251)

 

 

(2,505)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

43

 

 

53

 

 

43

 

Interest expense, net of amounts capitalized

 

 

(660)

 

 

(620)

 

 

(491)

 

Loss on retirement of debt

 

 

(41)

 

 

(3)

 

 

(55)

 

Other, net

 

 

181

 

 

46

 

 

 5

 

 

 

 

(477)

 

 

(524)

 

 

(498)

 

Loss before income tax expense

 

 

(1,198)

 

 

(1,775)

 

 

(3,003)

 

Income tax expense

 

 

59

 

 

228

 

 

94

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(1,257)

 

 

(2,003)

 

 

(3,097)

 

Net income (loss) attributable to noncontrolling interest

 

 

(2)

 

 

(7)

 

 

30

 

Net loss attributable to controlling interest

 

$

(1,255)

 

$

(1,996)

 

$

(3,127)

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(2.05)

 

$

(4.27)

 

$

(8.00)

 

Diluted

 

$

(2.05)

 

$

(4.27)

 

$

(8.00)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

 

612

 

 

468

 

 

391

 

Diluted

 

 

612

 

 

468

 

 

391

 

 

 

 

See accompanying notes.

 

AR-3

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

 

    

2019

    

2018

    

2017

  

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,257)

 

$

(2,003)

 

$

(3,097)

 

Net income (loss) attributable to noncontrolling interest

 

 

(2)

 

 

(7)

 

 

30

 

Net loss attributable to controlling interest

 

 

(1,255)

 

 

(1,996)

 

 

(3,127)

 

 

 

 

 

 

 

 

 

 

 

 

Components of net periodic benefit costs before reclassifications

 

 

(25)

 

 

 6

 

 

 —

 

Components of net periodic benefit costs reclassified to net loss

 

 

 4

 

 

 5

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before income taxes

 

 

(21)

 

 

11

 

 

21

 

Income taxes related to other comprehensive income

 

 

 —

 

 

 —

 

 

(28)

 

Other comprehensive income (loss)

 

 

(21)

 

 

11

 

 

(7)

 

Other comprehensive income attributable to noncontrolling interest

 

 

 

 

 —

 

 

 —

 

Other comprehensive income (loss) attributable to controlling interest

 

 

(21)

 

 

11

 

 

(7)

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss

 

 

(1,278)

 

 

(1,992)

 

 

(3,104)

 

Total comprehensive income (loss) attributable to noncontrolling interest

 

 

(2)

 

 

(7)

 

 

30

 

Total comprehensive loss attributable to controlling interest

 

$

(1,276)

 

$

(1,985)

 

$

(3,134)

 

 

 

 

See accompanying notes.

 

AR-4

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

    

2018

  

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,790

 

$

2,160

 

Accounts receivable, net

 

 

654

 

 

604

 

Materials and supplies, net

 

 

479

 

 

474

 

Restricted cash accounts and investments

 

 

558

 

 

551

 

Other current assets

 

 

159

 

 

159

 

Total current assets

 

 

3,640

 

 

3,948

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

24,281

 

 

25,811

 

Less accumulated depreciation

 

 

(5,434)

 

 

(5,403)

 

Property and equipment, net

 

 

18,847

 

 

20,408

 

Contract intangible assets

 

 

608

 

 

795

 

Deferred income taxes, net

 

 

20

 

 

66

 

Other assets

 

 

990

 

 

448

 

Total assets

 

$

24,105

 

$

25,665

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

Accounts payable

 

$

311

 

$

269

 

Accrued income taxes

 

 

64

 

 

70

 

Debt due within one year

 

 

568

 

 

373

 

Other current liabilities

 

 

781

 

 

746

 

Total current liabilities

 

 

1,724

 

 

1,458

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

8,693

 

 

9,605

 

Deferred income taxes, net

 

 

266

 

 

64

 

Other long-term liabilities

 

 

1,555

 

 

1,424

 

Total long-term liabilities

 

 

10,514

 

 

11,093

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares, CHF 0.10 par value, 639,674,422 authorized, 142,365,398 conditionally authorized, 617,970,525 issued

 

 

 

 

 

 

 

and 611,871,374  outstanding at December 31, 2019, and 638,285,574 authorized, 143,754,246 conditionally

 

 

 

 

 

 

 

authorized, 610,581,677 issued and 609,649,291 outstanding at December 31, 2018

 

 

59

 

 

59

 

Additional paid-in capital

 

 

13,424

 

 

13,394

 

Accumulated deficit

 

 

(1,297)

 

 

(67)

 

Accumulated other comprehensive loss

 

 

(324)

 

 

(279)

 

Total controlling interest shareholders’ equity

 

 

11,862

 

 

13,107

 

Noncontrolling interest

 

 

 5

 

 

 7

 

Total equity

 

 

11,867

 

 

13,114

 

Total liabilities and equity

 

$

24,105

 

$

25,665

 

 

 

See accompanying notes.

 

AR-5

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

Years ended December 31, 

 

 

 

2019

  

2018

  

2017

  

2019

  

2018

  

2017

 

 

 

Quantity

 

Amount

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

610

 

391

 

389

 

$

59

 

$

37

 

$

36

 

Issuance of shares under share-based compensation plans

 

 2

 

 3

 

 2

 

 

 —

 

 

 —

 

 

 1

 

Issuance of shares in acquisition transactions

 

 —

 

216

 

 —

 

 

 —

 

 

22

 

 

 —

 

Balance, end of period

 

612

 

610

 

391

 

$

59

 

$

59

 

$

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

13,394

 

$

11,031

 

$

10,993

 

Share-based compensation

 

 

 

 

 

 

 

 

37

 

 

45

 

 

41

 

Issuance of shares in acquisition transactions

 

 

 

 

 

 

 

 

 —

 

 

2,101

 

 

 —

 

Equity component of convertible debt instruments

 

 

 

 

 

 

 

 

 —

 

 

172

 

 

 —

 

Acquisition of redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

53

 

 

 —

 

Allocated capital for transactions with holders of noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

(3)

 

 

 —

 

Other, net

 

 

 

 

 

 

 

 

(7)

 

 

(5)

 

 

(3)

 

Balance, end of period

 

 

 

 

 

 

 

$

13,424

 

$

13,394

 

$

11,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained earnings (accumulated deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

(67)

 

$

1,929

 

$

5,056

 

Net loss attributable to controlling interest

 

 

 

 

 

 

 

 

(1,255)

 

 

(1,996)

 

 

(3,127)

 

Effect of adopting accounting standards updates

 

 

 

 

 

 

 

 

25

 

 

 —

 

 

 —

 

Balance, end of period

 

 

 

 

 

 

 

$

(1,297)

 

$

(67)

 

$

1,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

(279)

 

$

(290)

 

$

(283)

 

Other comprehensive income (loss) attributable to controlling interest

 

 

 

 

 

 

 

 

(21)

 

 

11

 

 

(7)

 

Effect of adopting accounting standards update

 

 

 

 

 

 

 

 

(24)

 

 

 —

 

 

 —

 

Balance, end of period

 

 

 

 

 

 

 

$

(324)

 

$

(279)

 

$

(290)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total controlling interest shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

13,107

 

$

12,707

 

$

15,802

 

Total comprehensive loss attributable to controlling interest

 

 

 

 

 

 

 

 

(1,276)

 

 

(1,985)

 

 

(3,134)

 

Share-based compensation

 

 

 

 

 

 

 

 

37

 

 

45

 

 

41

 

Issuance of shares in acquisition transactions

 

 

 

 

 

 

 

 

 —

 

 

2,123

 

 

 —

 

Equity component of convertible debt instruments

 

 

 

 

 

 

 

 

 —

 

 

172

 

 

 —

 

Acquisition of redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

53

 

 

 —

 

Allocated capital for transactions with holders of noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

(3)

 

 

 —

 

Other, net

 

 

 

 

 

 

 

 

(6)

 

 

(5)

 

 

(2)

 

Balance, end of period

 

 

 

 

 

 

 

$

11,862

 

$

13,107

 

$

12,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

 7

 

$

 4

 

$

 3

 

Total comprehensive income (loss) attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(2)

 

 

(2)

 

 

 1

 

Recognition of noncontrolling interest in business combination

 

 

 

 

 

 

 

 

 —

 

 

33

 

 

 —

 

Acquisition of noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

(31)

 

 

 —

 

Allocated capital for transactions with holders of noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

 3

 

 

 —

 

Balance, end of period

 

 

 

 

 

 

 

$

 5

 

$

 7

 

$

 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 

 

 

 

 

$

13,114

 

$

12,711

 

$

15,805

 

Total comprehensive loss

 

 

 

 

 

 

 

 

(1,278)

 

 

(1,987)

 

 

(3,133)

 

Share-based compensation

 

 

 

 

 

 

 

 

37

 

 

45

 

 

41

 

Issuance of shares in acquisition transactions

 

 

 

 

 

 

 

 

 —

 

 

2,123

 

 

 —

 

Equity component of convertible debt instruments

 

 

 

 

 

 

 

 

 —

 

 

172

 

 

 —

 

Recognition of noncontrolling interest in business combination

 

 

 

 

 

 

 

 

 —

 

 

33

 

 

 —

 

Acquisition of redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

53

 

 

 —

 

Acquisition of noncontrolling interest

 

 

 

 

 

 

 

 

 —

 

 

(31)

 

 

 —

 

Other, net

 

 

 

 

 

 

 

 

(6)

 

 

(5)

 

 

(2)

 

Balance, end of period

 

 

 

 

 

 

 

$

11,867

 

$

13,114

 

$

12,711

 

 

 

See accompanying notes.

 

AR-6

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

 

 

2019

    

2018

    

2017

  

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,257)

 

$

(2,003)

 

$

(3,097)

 

Adjustments to reconcile to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Contract intangible asset amortization

 

 

187

 

 

112

 

 

 —

 

Depreciation and amortization

 

 

855

 

 

818

 

 

832

 

Share-based compensation expense

 

 

37

 

 

45

 

 

41

 

Loss on impairment

 

 

609

 

 

1,464

 

 

1,498

 

Loss on disposal of assets, net

 

 

12

 

 

 —

 

 

1,603

 

Loss on retirement of debt

 

 

41

 

 

 3

 

 

55

 

Gain on termination of construction contracts

 

 

(132)

 

 

 —

 

 

 —

 

Deferred income tax expense (benefit)

 

 

248

 

 

(16)

 

 

89

 

Other, net

 

 

41

 

 

 6

 

 

55

 

Changes in deferred revenues, net

 

 

43

 

 

(139)

 

 

33

 

Changes in deferred costs, net

 

 

(33)

 

 

34

 

 

54

 

Changes in other operating assets and liabilities, net

 

 

(311)

 

 

234

 

 

 7

 

Net cash provided by operating activities

 

 

340

 

 

558

 

 

1,170

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(387)

 

 

(184)

 

 

(497)

 

Proceeds from disposal of assets, net

 

 

70

 

 

43

 

 

350

 

Investments in unconsolidated affiliates

 

 

(77)

 

 

(107)

 

 

 —

 

Cash paid in business combinations, net of cash acquired

 

 

 —

 

 

(883)

 

 

 —

 

Proceeds from maturities of unrestricted and restricted investments

 

 

123

 

 

507

 

 

 —

 

Deposits to unrestricted investments

 

 

 —

 

 

(173)

 

 

(450)

 

Other, net

 

 

 3

 

 

 —

 

 

10

 

Net cash used in investing activities

 

 

(268)

 

 

(797)

 

 

(587)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of debt, net of discounts and issue costs

 

 

1,056

 

 

2,054

 

 

1,144

 

Repayments of debt

 

 

(1,325)