0001451505-21-000071 | 10-Q | XBRL Viewer

Drilling Fleet (Tables)

6 Months Ended

Jun. 30, 2021

Changes in our construction work in progress, including capital expenditures and capitalized interest


	Six months ended
	June 30,
	2021		2020
Construction work in progress, beginning of period	$	828	$	753

Capital expenditures
Newbuild construction program		77		70
Other equipment and construction projects		23		83
Total capital expenditures		100		153
Changes in accrued capital additions		(9)		(31)

Property and equipment placed into service		(18)		(98)
Construction work in progress, end of period	$	901	$	777

Subsequent Events (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	6 Months Ended
	Aug. 03, 2021	Jun. 30, 2021
Subsequent events
Proceeds from issuance of shares		$ 66
Subsequent Events
Subsequent events
Proceeds from issuance of shares	$ 77
Aggregate sale of shares (in shares)	16.5

Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator for loss per share, basic and diluted
Net loss attributable to controlling interest	$ (103)	$ (497)	$ (202)	$ (889)
Denominator for loss per share, basic and diluted
Weighted-average shares outstanding (in shares)	620.0	614.0	618.0	614.0
Effect of share-based awards (in shares)	1.0	1.0	1.0	1.0
Weighted-average shares for per share calculation	621.0	615.0	619.0	615.0
Loss per share, basic and diluted (in dollars per share)	$ (0.17)	$ (0.81)	$ (0.33)	$ (1.45)
Share-based awards
Denominator for loss per share, basic and diluted
Securities excluded from earnings per share calculation (in shares)	13.3	14.8	12.9	13.0
Convertible debt
Denominator for loss per share, basic and diluted
Securities excluded from earnings per share calculation (in shares)	108.0	84.0	101.0	84.0
0.50% Exchangeable Senior Bonds due January 2023
Denominator for loss per share, basic and diluted
Debt instrument interest rate stated percentage	0.50%	0.50%	0.50%	0.50%
2.50% Senior Guaranteed Exchangeable Bonds due January 2027
Denominator for loss per share, basic and diluted
Debt instrument interest rate stated percentage	2.50%		2.50%
4.00% Senior Guaranteed Exchangeable Bonds due December 2025
Denominator for loss per share, basic and diluted
Debt instrument interest rate stated percentage	4.00%		4.00%

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2021
Significant Accounting Policies
Presentation	Presentation—We 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. 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 six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, 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, 2020 and 2019, and for each of the three years in the period ended December 31, 2020, included in our annual report on Form 10-K filed on March 1, 2021.
Accounting estimates	Accounting estimates—To prepare financial statements in accordance with accounting principles generally accepted in the U.S., we must 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 income taxes, property and equipment, equity investments, contingencies, allowance for excess materials and supplies, assets held for sale, intangibles, allowance for credit losses, leases, share-based compensation and postemployment benefit plans. We base our estimates and assumptions on historical experience and other factors that we believe are reasonable. Actual results could differ from such estimates.
Fair value measurements	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 a valuation requires multiple input levels, 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

Debt (Maturities) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Scheduled maturities of debt
Total installments of debt	$ 7,150	$ 7,376
Total Installments
Scheduled maturities of debt
2022	548
2023	867
2024	719
2025	532
2026	1,606
Thereafter	3,340
Total installments of debt	7,612
Total debt-related balances, net	(85)
Total carrying amount of debt	7,527
Principal installments
Scheduled maturities of debt
2022	472
2023	791
2024	642
2025	455
2026	1,528
Thereafter	3,262
Total installments of debt	7,150
Other installments
Scheduled maturities of debt
2022	76
2023	76
2024	77
2025	77
2026	78
Thereafter	78
Total installments of debt	$ 462

Contingencies

6 Months Ended

Jun. 30, 2021

Contingencies

Contingencies

Note 10—Contingencies

Legal proceedings

Debt exchange litigation and purported notice of default—Prior to the consummation of the exchange transactions that we completed in August and September 2020, we completed certain internal reorganization transactions (the “Internal Reorganization”). In September 2020, funds managed by, or affiliated with, Whitebox Advisors LLC (“Whitebox”) as holders of certain series of our notes subject to the exchange offer transactions completed in September 2020 (the “Exchange Offers”), filed a claim (the “Claim”) in the U.S. District Court for the Southern District of New York (the “Court”) related to such certain internal reorganization transactions and the Exchange Offers. Additionally, in September and October 2020, Whitebox and funds managed by, or affiliated with, Pacific Investment Management Company LLC, as debtholders, together with certain other advisors and debtholders, provided purported notices of alleged default with respect to the indentures governing, respectively, the 8.00% Senior Notes and the 7.25% senior notes due November 2025 (the “7.25% Senior Notes”).

On September 23, 2020, we filed an answer to the Claim with the Court and asserted counterclaims seeking a declaratory judgment that, among other matters, the Internal Reorganization did not cause a default under the indenture governing the 8.00% Senior Notes. Concurrently, with our answer and counterclaims, we also submitted a motion for summary judgment seeking an expedited judgment on our request for declaratory judgment. Whitebox subsequently submitted a cross motion for summary judgment seeking dismissal of our counterclaims. On November 30, 2020, while awaiting the Court’s ruling on our motion for summary judgment, we amended certain of our financing documents and implemented certain internal reorganization transactions, which resolved the allegations contained in the purported notices of default. On December 17, 2020, the Court issued its ruling granting our motion for summary judgment and denying the plaintiff’s cross motion for summary judgment, holding, among other matters, that the allegations contained in the purported notice of default did not constitute a default under the indenture governing the 8.00% Senior Notes. Whitebox has appealed the Court’s ruling.

The facts alleged in the purported notice of default under the 8.00% Senior Notes were the same as the facts underlying the Claim and the purported notice of default under the 7.25% Senior Notes. Accordingly, following the amendment and internal reorganization

transactions on November 30, 2020, and the subsequent ruling from the Court granting our motion for summary judgment, we do not expect the liability, if any, resulting from these matters to have a material adverse effect on our condensed 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 complaints filed in the Circuit Courts of the State of Mississippi, and in 2014, a group of similar complaints were filed in Louisiana. The plaintiffs, former employees of some of the defendants, generally allege that the defendants used or manufactured asbestos-containing drilling mud additives for use in connection with drilling operations, claiming 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, but the court-appointed special master has ruled that a Jones Act employer defendant, such as us, cannot be sued for punitive damages. One of our subsidiaries was named in additional complaints filed in Illinois and Missouri, where the plaintiffs similarly allege that the defendants manufactured asbestos-containing products or used asbestos-containing drilling mud additives in connection with land-based drilling operations. As of June 30, 2021, nine plaintiffs have claims pending in Louisiana and 16 plaintiffs have claims pending in Illinois and Missouri, in which we have or may have an interest. We intend to defend these lawsuits vigorously, although we can provide no assurance as to the 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 condensed consolidated statement of financial position, results of operations or cash flows.

One of our subsidiaries has been named as a defendant, along with numerous other companies, in lawsuits arising out of the subsidiary’s manufacture and sale of heat exchangers, and involvement in the construction and refurbishment of major industrial complexes alleging bodily injury or personal injury as a result of exposure to asbestos. As of June 30, 2021, the subsidiary was a defendant in approximately 281 lawsuits with a corresponding number of plaintiffs. For many of these lawsuits, we have not been provided 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 operating assets of the subsidiary were sold in 1989. In September 2018, the subsidiary and certain insurers agreed to a settlement of outstanding disputes that provided the subsidiary with cash and an annuity. Together with a coverage-in-place agreement with certain insurers and additional coverage issued by other insurers, we believe the subsidiary has sufficient resources to respond to both the current lawsuits as well as future lawsuits of a similar nature. While we cannot predict or provide assurance as to the outcome of these matters, we do not expect the ultimate liability, if any, resulting from these claims to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows.

Other matters—We are involved in various tax matters, various regulatory matters, and a number of claims and lawsuits, asserted and unasserted, 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 condensed 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, threatened, or possible litigation or liability. We can provide no assurance that our beliefs or expectations as to the outcome or effect of any tax, regulatory, lawsuit or other litigation matter will prove correct and the eventual outcome of these matters could materially differ from management’s current estimates.

Environmental matters

We have certain potential liabilities under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state acts regulating cleanup of hazardous substances at various 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. It is difficult to quantify the potential cost of environmental matters and remediation obligations. Liability is strict and can be joint and several.

One of our subsidiaries was 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 agreed, under a participation agreement with the U.S. Environmental Protection Agency (the “EPA”) and the U.S. Department of Justice, to settle our potential liabilities by remediating the site. The remedial action for the site was completed in 2006. Our share of the ongoing operating and maintenance costs has been insignificant, and we do not expect any additional potential liabilities to be material. Resolutions of other claims by the EPA, the involved state agency or PRPs are at various stages of investigation. Nevertheless, based on available information, we do not expect the ultimate liability, if any, resulting from all environmental matters and known potential legal claims that are likely to be asserted, to have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows.

Drilling Fleet (Disposal) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Dispositions
Net cash proceeds from sale of assets			$ 7	$ 3
Gain (loss) on the sale of assets	$ 1	$ 1	(58)
Assets sold, not discontinued operations \| Rig sales
Dispositions
Net cash proceeds from sale of assets			4	$ 2
Gain (loss) on the sale of assets			$ (60)
Gain (loss) on the sale of assets per diluted share			$ (0.10)
Gain (loss) on disposal of assets, tax effect			$ 0

Debt

6 Months Ended

Jun. 30, 2021

Debt

Debt

Note 7—Debt

Overview

Outstanding debt—The aggregate principal amounts and aggregate carrying amounts, net of debt-related balances, including unamortized discounts, premiums, issue costs and fair value adjustments of our debt, were as follows (in millions):


	Principal amount				Carrying amount
	June 30,		December 31,		June 30,		December 31,
	2021		2020		2021		2020
6.375% Senior Notes due December 2021	$	38	$	38	$	38	$	38
5.52% Senior Secured Notes due May 2022		66		111		66		111
3.80% Senior Notes due October 2022		27		27		27		27
0.50% Exchangeable Senior Bonds due January 2023		140		463		140		462
5.375% Senior Secured Notes due May 2023		347		364		345		360
5.875% Senior Secured Notes due January 2024		544		585		537		577
7.75% Senior Secured Notes due October 2024		330		360		325		354
6.25% Senior Secured Notes due December 2024		344		375		339		369
6.125% Senior Secured Notes due August 2025		435		468		428		461
7.25% Senior Notes due November 2025		411		411		406		405
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		294		—		261		—
7.50% Senior Notes due January 2026		569		569		565		565
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		238		238		274		277
11.50% Senior Guaranteed Notes due January 2027		687		687		1,113		1,139
6.875% Senior Secured Notes due February 2027		550		550		543		542
8.00% Senior Notes due February 2027		612		612		607		606
7.45% Notes due April 2027		52		52		51		51
8.00% Debentures due April 2027		22		22		22		22
7.00% Notes due June 2028		261		261		265		266
7.50% Notes due April 2031		396		396		394		394
6.80% Senior Notes due March 2038		610		610		605		605
7.35% Senior Notes due December 2041		177		177		176		176
Total debt		7,150		7,376		7,527		7,807

Less debt due within one year
6.375% Senior Notes due December 2021		38		38		38		38
5.52% Senior Secured Notes due May 2022		66		93		66		92
5.375% Senior Secured Notes due May 2023		63		47		62		46
5.875% Senior Secured Notes due January 2024		83		83		80		80
7.75% Senior Secured Notes due October 2024		60		60		58		58
6.25% Senior Secured Notes due December 2024		62		62		60		60
6.125% Senior Secured Notes due August 2025		66		66		64		64
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		—		—		6		6
11.50% Senior Guaranteed Notes due January 2027		—		—		70		61
6.875% Senior Secured Notes due February 2027		34		—		32		—
Total debt due within one year		472		449		536		505
Total long-term debt	$	6,678	$	6,927	$	6,991	$	7,302

Scheduled maturities—At June 30, 2021, the principal installments and other installments, representing contractual interest payments of previously restructured debt, were as follows (in millions):


	Principal		Other
	installments		installments		Total
Twelve months ending June 30,
2022	$	472	$	76	$	548
2023		791		76		867
2024		642		77		719
2025		455		77		532
2026		1,528		78		1,606
Thereafter		3,262		78		3,340
Total installments of debt	$	7,150	$	462		7,612
Total debt-related balances, net						(85)
Total carrying amount of debt					$	7,527

Interest rate adjustments—The interest rates for certain of our notes are subject to adjustment from time to time upon a change to the credit rating of our non-credit enhanced senior unsecured long-term debt. As of June 30, 2021, the interest rate in effect for the

6.375% senior notes due December 2021, 3.80% senior notes due October 2022 and the 7.35% senior notes due December 2041 was 8.375 percent, 5.80 percent and 9.35 percent, respectively.

Credit agreements

Secured Credit Facility—As of June 30, 2021, we have a $1.3 billion secured revolving credit facility established under a bank credit agreement (as amended from time to time, the “Secured Credit Facility”), which is scheduled to expire on June 22, 2023. The Secured Credit Facility is guaranteed by Transocean Ltd. and certain wholly owned subsidiaries. We may borrow under the Secured Credit Facility at either (1) the reserve adjusted London interbank offered rate plus a margin (the “Secured Credit Facility Margin”), which ranges from 2.625 percent to 3.375 percent based on the credit rating of the Secured Credit Facility, or (2) the base rate specified in the credit agreement plus the Secured Credit Facility Margin, minus one percent per annum. Throughout the term of the Secured Credit Facility, we pay a facility fee on the amount of the underlying commitment which ranges from 0.375 percent to 1.00 percent based on the credit rating of the Secured Credit Facility. At June 30, 2021, based on the credit rating of the Secured Credit Facility on that date, the Secured Credit Facility Margin was 3.375 percent and the facility fee was 0.875 percent. At June 30, 2021, we had no borrowings outstanding, $23 million of letters of credit issued, and we had $1.3 billion of available borrowing capacity under the Secured Credit Facility. See Note 10—Contingencies.

Shipyard financing arrangement—In June 2021, Transocean Offshore Deepwater Holdings Limited, a Cayman Islands company and our wholly owned indirect subsidiary, entered into credit agreements with Jurong Shipyard Pte Ltd. establishing facilities (the “Shipyard Loans”) to finance the final payments expected to be owed to the shipyard upon delivery of the ultra-deepwater floaters Deepwater Atlas and Deepwater Titan. The Shipyard Loans will be guaranteed by Transocean Inc. Borrowings under the Shipyard Loan for Deepwater Atlas may be secured by, among other security, a lien on the rig. In certain circumstances, borrowings under the Shipyard Loan for Deepwater Titan may also be secured by, among other security, a lien on the rig. We will repay the borrowings, together with interest of 4.5 percent per annum, according to the selected installment schedule with a maximum of a six-year period following delivery of the drilling rigs. We will have the right to prepay any outstanding borrowings, in full or in part, without penalty. The Shipyard Loans contain customary events of default and affirmative and negative covenants, including covenants limiting the ability of the subsidiary owners of the drilling rigs from incurring certain types of additional indebtedness or making certain additional commitments or investments. At June 30, 2021, we had no borrowings outstanding under the Shipyard Loans.

Exchangeable bonds

Exchange terms—At June 30, 2021, the current exchange rates, expressed as the number of Transocean Ltd. shares per $1,000 note, implied exchange prices per Transocean Ltd. share and shares issuable upon exchange, expressed in millions, for our exchangeable bonds were as follows:


			Implied
	Exchange		exchange		Shares
	rate		price		issuable
0.50% Exchangeable Senior Bonds due January 2023		97.29756	$	10.28		13.6
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		190.47620		5.25		56.0
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		162.16260		6.17		38.6

The exchange rates of our exchangeable bonds, identified above, are subject to adjustment upon the occurrence of certain events. The 0.50% Exchangeable Senior Bonds may be exchanged by holders into Transocean Ltd. shares at any time prior to the close of business on the business day immediately preceding the maturity date. The 2.50% Senior Guaranteed Exchangeable Bonds may be exchanged by holders into Transocean Ltd. shares at any time prior to the close of business on the second business day immediately preceding the maturity date or redemption date. The 4.00% Senior Guaranteed Exchangeable Bonds may be exchanged by holders at any time prior to the close of business on the second business day immediately preceding the maturity date and, at our election, such exchange may be settled by delivering cash, Transocean Ltd. shares or a combination of cash and shares.

Effective interest rates and fair values—At June 30, 2021, the effective interest rates and estimated fair values of our exchangeable bonds were as follows (in millions, except effective interest rates):


	Effective		Fair
	interest rate		value
0.50% Exchangeable Senior Bonds due January 2023		0.5%	$	125
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		6.9%		349
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		0.0%		262

We estimated the fair values of the exchangeable debt instruments, including the exchange features, by employing a binomial lattice model and by using significant other observable inputs, representative of a Level 2 fair value measurement, including the terms and credit spreads of our debt and expected volatility of the market price for our shares.

Related balances—At June 30, 2021 and December 31, 2020, the premium associated with the original issuance of the 0.50% Exchangeable Senior Bonds had a carrying amount of $172 million, recorded in equity as a component of additional paid-in capital.

Debt issuances

Senior guaranteed exchangeable bonds—On February 26, 2021, we issued $294 million aggregate principal amount of the 4.00% Senior Guaranteed Exchangeable Bonds and made an aggregate cash payment of $11 million in private exchanges (the “2021 Private Exchanges”) for $323 million aggregate principal amount of outstanding 0.50% Exchangeable Senior Bonds. In the six months ended June 30, 2021, as a result of the 2021 Private Exchanges, we recognized a gain of $51 million ($0.08 per diluted share), with no tax effect, associated with the retirement of debt (see “—Debt retirements”). The 4.00% Senior Guaranteed Exchangeable Bonds are guaranteed by Transocean Ltd. and the same subsidiaries of Transocean Inc. that guarantee the 2.50% Senior Guaranteed Exchangeable Bonds and 11.50% senior guaranteed notes due January 2027. The initial carrying amount of the 4.00% Senior Guaranteed Exchangeable Bonds, measured at the estimated fair value on the date of issuance, was $260 million. We estimated the fair value of the exchangeable debt instrument, including the exchange feature, by employing a binomial lattice model and by using significant other observable inputs, representative of a Level 2 fair value measurement, including the terms and credit spreads of our debt and expected volatility of the market price for our shares.

Guaranteed senior unsecured notes—On January 17, 2020, we issued $750 million aggregate principal amount of 8.00% senior unsecured notes due February 2027 (the “8.00% Senior Notes”), and we received aggregate cash proceeds of $743 million, net of issue costs. We may redeem all or a portion of the 8.00% Senior Notes on or prior to February 1, 2023 at a price equal to 100 percent of the aggregate principal amount plus a make-whole premium, and subsequently, at specified redemption prices.

Debt retirements

During the six months ended June 30, 2021 and 2020, we retired certain notes as a result of redemption, private exchanges and open market repurchases. The aggregate principal amounts, cash payments and recognized gain or loss for such transactions were as follows (in millions):


	Six months ended June 30,
	2021						2020
	Exchanged		Repurchased		Total		Redeemed		Repurchased		Total
6.50% Senior Notes due November 2020	$	—	$	—	$	—	$	—	$	8	$	8
6.375% Senior Notes due December 2021		—		—		—		—		38		38
3.80% Senior Notes due October 2022		—		—		—		—		8		8
0.50% Exchangeable Senior Bonds due January 2023		323		—		323		—		—		—
5.375% Senior Secured Notes due May 2023		—		1		1		—		22		22
9.00% Senior Notes due July 2023		—		—		—		714		—		714
Aggregate principal amount retired	$	323	$	1	$	324	$	714	$	76	$	790

Aggregate cash payment	$	11	$	1	$	12	$	767	$	63	$	830
Aggregate principal amount of debt issued in exchanges	$	294	$	—	$	294	$	—	$	—	$	—
Aggregate net gain (loss)	$	51	$	—	$	51	$	(65)	$	12	$	(53)

Revenues (Disaggregation) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Revenues (Disaggregation) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue
Face amount of receivable		$ 185		$ 185
Performance obligations satisfied in previous periods		177		177
Receivable net of discount	$ 88		$ 88		$ 133
Recognized pre-operating costs	16	23	30	32
Unrecognized pre-operating costs	10		10		20
Contract drilling revenues	656	930	1,309	1,689
Ultra-deepwater floaters
Revenue
Contract drilling revenues	424	636	860	1,164
Harsh environment floaters
Revenue
Contract drilling revenues	232	293	449	513
Midwater floaters
Revenue
Contract drilling revenues		1		12
U.S.
Revenue
Contract drilling revenues	273	440	543	727
U.S. \| Ultra-deepwater floaters
Revenue
Contract drilling revenues	273	440	539	727
U.S. \| Harsh environment floaters
Revenue
Contract drilling revenues			4
Norway
Revenue
Contract drilling revenues	222	207	424	414
Norway \| Harsh environment floaters
Revenue
Contract drilling revenues	222	207	424	414
Other
Revenue
Contract drilling revenues	161	283	342	548
Other \| Ultra-deepwater floaters
Revenue
Contract drilling revenues	151	196	321	437
Other \| Harsh environment floaters
Revenue
Contract drilling revenues	10	86	21	99
Other \| Midwater floaters
Revenue
Contract drilling revenues		$ 1		$ 12
Accounts receivable
Revenue
Receivable net of discount	45		45		45
Other assets
Revenue
Receivable net of discount	$ 43		$ 43		$ 88

Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financial instruments
Long-term debt, including current maturities	$ 7,527	$ 7,807
Carrying amount
Financial instruments
Cash and cash equivalents	988	1,154
Restricted cash and cash equivalents	502	406
Long-term loans receivable from unconsolidated affiliates	35	2
Long-term debt, including current maturities	7,527	7,807
Fair value
Financial instruments
Cash and cash equivalents	988	1,154
Restricted cash and cash equivalents	502	406
Long-term loans receivable from unconsolidated affiliates	31	2
Long-term debt, including current maturities	$ 6,586	$ 4,820

Unconsolidated Affiliates

6 Months Ended

Jun. 30, 2021

Unconsolidated Affiliates

Unconsolidated Affiliates

Note 4—Unconsolidated Affiliates

Equity investments—We hold noncontrolling equity investments in various unconsolidated companies, including (a) our 33.0 percent ownership interest in Orion Holdings (Cayman) Limited (together with its subsidiary, “Orion”), a Cayman Islands company that, through its wholly owned subsidiary, owns the harsh environment floater Transocean Norge, and (b) our interests in certain companies that are involved in researching and developing technology to improve efficiency and reliability and to increase automation, sustainability and safety for drilling and other activities. In the three months ended June 30, 2020, we recognized a loss of $59 million, which had no tax effect,

recorded in other, net, associated with the impairment of our investment in Orion upon determination that the carrying amount of our equity method investment exceeded the estimated fair value and that the impairment was other than temporary. We estimated the fair value of our investment using the income method, which required us to use significant unobservable inputs, representative of a Level 3 fair value measurement, including applying an assumed discount rate of 12 percent and making assumptions about the future performance of the investment, including future demand and supply for harsh environment floaters, rig utilization, revenue efficiency and dayrates. At June 30, 2021 and December 31, 2020, the aggregate carrying amount of our equity investments was $139 million and $138 million, respectively, recorded in other assets, of which the aggregate carrying amount of our equity investment in Orion was $105 million and $104 million, respectively.

Related party transactions—We engage in certain related party transactions with our unconsolidated affiliates, the most significant of which are under agreements with Orion. We have a management services agreement for the operation, stacking and maintenance of the harsh environment floater Transocean Norge and a marketing services agreement for the marketing of the rig. We also leased the rig under a short-term bareboat charter agreement, which expired in June 2021. Prior to the rig’s placement into service, we engaged in certain related party transactions with Orion under a shipyard care agreement for the construction of the rig and other matters related to its completion and delivery. In the three and six months ended June 30, 2020, we received an aggregate cash payment of $26 million and $31 million, respectively, primarily related to the shipyard care agreement.

Additionally, in June 2021, Orion refinanced its shipyard loans under a financing arrangement for $100 million, in which we participated at a rate equivalent to our ownership interest in Orion. Borrowings under the financing arrangement are secured by Transocean Norge. The financing arrangement, which expires in June 2024, requires interest to be paid on outstanding borrowings at the London Interbank Offered Rate plus a margin of 6.50 percent per annum. In the three months ended June 30, 2021, we made a cash investment in loans of $33 million, and at June 30, 2021, the outstanding borrowings due to us under the financing arrangement were $33 million, recorded in other assets.

Revenues (Changes) (Details) - USD ($) $ in Millions	6 Months Ended
Revenues (Changes) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Significant changes to contract liabilities
Total contract liabilities, at beginning of period	$ 456	$ 529
Decrease due to recognition of revenues for goods and services	(81)	(108)
Increase due to goods and services transferred over time	9	98
Total contract liabilities, at end of period	$ 384	$ 519

Drilling Fleet (Impairment held for sale) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Drilling Fleet
Aggregate loss on impairment of assets held for sale	$ 419	$ 556
Aggregate loss on impairment of assets held for sale, net of tax	$ 420
Loss associated with impairment, net of tax (per share)	$ 0.68	$ 0.90
Aggregate loss on impairment of assets held for sale, tax effect		$ 0

Business (Details)	Jun. 30, 2021 item
Number of mobile offshore drilling units	37
Ultra-deepwater floaters
Number of mobile offshore drilling units	27
Number of mobile offshore drilling units under construction	2
Harsh environment floaters
Number of mobile offshore drilling units	10

Accounting Standards Update

6 Months Ended

Jun. 30, 2021

Accounting Standards Update

Accounting Standards Update

Note 3—Accounting Standards Update

Recently adopted accounting standards

Debt with conversion and other options—Effective January 1, 2021, we early adopted the accounting standards update that simplifies the accounting for convertible instruments, such as our exchangeable debt, by limiting the accounting models that result in separately recognizing embedded conversion features from the host contract. The accounting standards update also enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance. Our adoption did not result in any accounting changes for the 0.50% exchangeable senior bonds due January 2023 (the “0.50% Exchangeable Senior Bonds”) or the 2.50% senior guaranteed exchangeable bonds due January 2027 (the “2.50% Senior Guaranteed Exchangeable Bonds”). Under previous accounting guidance, for the 4.00% Senior Guaranteed Exchangeable Bonds due December 2025 (the “4.00% Senior Guaranteed Exchangeable Bonds”), we would have recorded the debt and exchange features separately and, consequently, we would have recognized in current and future periods greater amortization, as a component of interest expense. See Note 7—Debt.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Revenues (Tables)

6 Months Ended

Jun. 30, 2021

Revenues

Schedule of revenue disaggregation


	Three months ended June 30, 2021								Three months ended June 30, 2020
	U.S.		Norway		Other		Total		U.S.		Norway		Other		Total
Ultra-deepwater floaters	$	273	$	—	$	151	$	424	$	440	$	—	$	196	$	636
Harsh environment floaters		—		222		10		232		—		207		86		293
Midwater floaters		—		—		—		—		—		—		1		1
Total contract drilling revenues	$	273	$	222	$	161	$	656	$	440	$	207	$	283	$	930


	Six months ended June 30, 2021								Six months ended June 30, 2020
	U.S.		Norway		Other		Total		U.S.		Norway		Other		Total
Ultra-deepwater floaters	$	539	$	—	$	321	$	860	$	727	$	—	$	437	$	1,164
Harsh environment floaters		4		424		21		449		—		414		99		513
Midwater floaters		—		—		—		—		—		—		12		12
Total contract drilling revenues	$	543	$	424	$	342	$	1,309	$	727	$	414	$	548	$	1,689

Schedule of contract balances and changes


	June 30,		December 31,
	2021		2020
Deferred contract revenues, recorded in other current liabilities	$	102	$	133
Deferred contract revenues, recorded in other long-term liabilities		282		323
Total contract liabilities	$	384	$	456

The changes in contract liabilities were as follows (in millions):


	Six months ended
	June 30,
	2021		2020
Total contract liabilities, beginning of period	$	456	$	529
Decrease due to recognition of revenues for goods and services		(81)		(108)
Increase due to goods and services transferred over time		9		98
Total contract liabilities, end of period	$	384	$	519

Debt (Interest and Credit Agreements) (Details) $ in Millions	1 Months Ended	6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)
6.375% Senior Notes due December 2021
Debt
Debt instrument interest rate stated percentage	6.375%	6.375%
Interest rate, as adjusted (as a percent)		8.375%
3.80% Senior Notes due October 2022
Debt
Debt instrument interest rate stated percentage	3.80%	3.80%
Interest rate, as adjusted (as a percent)		5.80%
7.35% Senior Notes due December 2041
Debt
Debt instrument interest rate stated percentage	7.35%	7.35%
Interest rate, as adjusted (as a percent)		9.35%
Five-Year Revolving Credit Facility
Debt
Borrowing capacity, maximum	$ 1,300	$ 1,300
Commitment fee percentage at period end		0.875%
Credit facility amount outstanding	0	$ 0
Letters of credit issued and outstanding	23	23
Credit facility available borrowing capacity	$ 1,300	$ 1,300
Five-Year Revolving Credit Facility \| Minimum
Debt
Commitment fee percentage at period end		0.375%
Five-Year Revolving Credit Facility \| Maximum
Debt
Commitment fee percentage at period end		1.00%
Five-Year Revolving Credit Facility \| Adjusted LIBOR
Debt
Spread on variable rate basis (as a percent)		3.375%
Percentage reduction to the calculated variable rate	1.00%	1.00%
Five-Year Revolving Credit Facility \| Adjusted LIBOR \| Minimum
Debt
Spread on variable rate basis (as a percent)		2.625%
Five-Year Revolving Credit Facility \| Adjusted LIBOR \| Maximum
Debt
Spread on variable rate basis (as a percent)		3.375%
Shipyard Loans
Debt
Debt instrument interest rate stated percentage	4.50%	4.50%
Credit facility amount outstanding	$ 0	$ 0
Debt term	6 years

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating revenues
Contract drilling revenues	$ 656	$ 930	$ 1,309	$ 1,689
Revenue from Contract with Customer, Product and Service [Extensible List]	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember
Costs and expenses
Operating and maintenance	$ 434	$ 525	$ 869	$ 1,065
Cost, Product and Service [Extensible List]	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember	us-gaap:OilAndGasServiceMember
Depreciation and amortization	$ 186	$ 196	$ 373	$ 402
General and administrative	39	45	78	88
Total costs and expenses	659	766	1,320	1,555
Loss on impairment		(429)		(597)
Gain (loss) on disposal of assets, net	1	1	(58)
Operating loss	(2)	(264)	(69)	(463)
Other income (expense), net
Interest income	4	4	7	13
Interest expense, net of amounts capitalized	(115)	(153)	(230)	(313)
Gain (loss) on retirement of debt		4	51	(53)
Other, net	14	(56)	23	(44)
Total other income (expense), net	(97)	(201)	(149)	(397)
Loss before income tax expense	(99)	(465)	(218)	(860)
Income tax expense (benefit)	4	32	(17)	28
Net loss	(103)	(497)	(201)	(888)
Net income attributable to noncontrolling interest			1	1
Net loss attributable to controlling interest	$ (103)	$ (497)	$ (202)	$ (889)
Loss per share, basic and diluted (in dollars per share)	$ (0.17)	$ (0.81)	$ (0.33)	$ (1.45)
Weighted average shares, basic and diluted (in shares)	621	615	619	615

Debt (Exchange and Issue) (Details) $ / shares in Units, $ in Millions			6 Months Ended		12 Months Ended
	Feb. 26, 2021 USD ($) $ / shares	Jan. 17, 2020 USD ($)	Jun. 30, 2021 USD ($) $ / shares	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Debt
Issuance of debt in exchange transactions			$ 294.0
Aggregate cash payment			12.0	$ 830.0
Proceeds from issuance of debt				$ 743.0
Exchanged
Debt
Issuance of debt in exchange transactions			294.0
Aggregate cash payment			$ 11.0
0.50% Exchangeable Senior Bonds due January 2023
Debt
Debt conversion ratio			0.09729756
Debt conversion (in dollars per share) \| $ / shares			$ 10.28
Shares issuable (in shares)			13.6
Effective interest rate (as a percent)			0.50%
Fair value of debt			$ 125.0
Equity component of convertible debt instruments			$ 172.0		$ 172.0
Aggregate cash payment	$ 11.0
Original debt in exchange	323.0
Gains (losses) on restructuring	$ 51.0
Gains (losses) on restructuring (in dollars per share) \| $ / shares	$ 0.08
4.00% Senior Guaranteed Exchangeable Bonds due December 2025
Debt
Debt conversion ratio			0.19047620
Debt conversion (in dollars per share) \| $ / shares			$ 5.25
Shares issuable (in shares)			56.0
Effective interest rate (as a percent)			6.90%
Fair value of debt			$ 349.0
Equity component of convertible debt instruments	$ 260.0
Issuance of debt in exchange transactions	$ 294.0
2.50% Senior Guaranteed Exchangeable Bonds due January 2027
Debt
Debt conversion ratio			0.16216260
Debt conversion (in dollars per share) \| $ / shares			$ 6.17
Shares issuable (in shares)			38.6
Effective interest rate (as a percent)			0.00%
Fair value of debt			$ 262.0
8.00% Senior Notes due February 2027
Debt
Debt instrument face value		$ 750.0
Proceeds from issuance of debt		$ 743.0
Redemption price of debt instrument (as a percent)		100.00%

Drilling Fleet (Impairment held and used) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Impairment of assets held and used
Loss associated with impairment, net of tax (per share)	$ 0.68	$ 0.90
Midwater floaters
Impairment of assets held and used
Impairment of in use assets		$ 31
Loss associated with impairment, net of tax (per share)		$ 0.05
Loss associated with in use asset impairment, tax effect		$ 0

Subsequent Event

6 Months Ended

Jun. 30, 2021

Subsequent Event

Subsequent Event

Note 13—Subsequent Event

Share issuance—Subsequent to June 30, 2021, we received aggregate cash proceeds of $77 million, net of issue costs, for the aggregate sale of 16.5 million shares under the ATM Program.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions	Jun. 30, 2021 USD ($) shares	Jun. 30, 2021 SFr / shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2020 SFr / shares
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts \| $	$ 2		$ 2
Materials and supplies, net of allowance \| $	$ 145		$ 143
Shares, CHF par value (in Swiss francs per share) \| SFr / shares		SFr 0.10		SFr 0.10
Shares, authorized	891,379,015		824,650,660
Shares, conditionally authorized	142,363,647		142,363,647
Shares, issued	685,676,165		639,676,165
Shares, outstanding	634,629,502		615,140,276

Income Taxes (Tax Returns) (Details) - 6 months ended Jun. 30, 2021 - Brazil R$ in Millions, $ in Millions	USD ($)	BRL (R$)
Corporate income tax
Income Tax Examination
Net adjustments of additional taxes, including interest and penalties	$ 127	R$ 631
Indirect tax
Income Tax Examination
Net adjustments of additional taxes, including interest and penalties	$ 22	R$ 108

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (103)	$ (497)	$ (201)	$ (888)
Net income attributable to noncontrolling interest			1	1
Net loss attributable to controlling interest	(103)	(497)	(202)	(889)
Components of net periodic benefit costs before reclassifications			(5)	(9)
Components of net periodic benefit costs reclassified to net loss	3	2	4	4
Other comprehensive income (loss) before income taxes	3	2	(1)	(5)
Other comprehensive income (loss)	3	2	(1)	(5)
Other comprehensive income (loss) attributable to controlling interest	3	2	(1)	(5)
Total comprehensive loss	(100)	(495)	(202)	(893)
Total comprehensive income attributable to noncontrolling interest			1	1
Total comprehensive loss attributable to controlling interest	$ (100)	$ (495)	$ (203)	$ (894)

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Jul. 27, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38373
Entity Registrant Name	Transocean Ltd
Entity Incorporation, State or Country Code	V8
Entity Tax Identification Number	98-0599916
Entity Address, Address Line One	Turmstrasse 30
Entity Address, City or Town	Steinhausen
Entity Address, Country	CH
Entity Address, Postal Zip Code	6312
City Area Code	+41 (41)
Local Phone Number	749-0500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		651,139,945
Entity Central Index Key	0001451505
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Shares
Document and Entity Information
Title of 12(b) Security	Shares
Trading Symbol	RIG
Security Exchange Name	NYSE
0.50% Exchangeable Senior Bonds due January 2023
Document and Entity Information
Title of 12(b) Security	0.50% Exchangeable Senior Bonds due 2023
Trading Symbol	RIG/23
Security Exchange Name	NYSE

Drilling Fleet

6 Months Ended

Jun. 30, 2021

Drilling Fleet

Drilling Fleet

Note 6—Drilling Fleet

Construction work in progress—The changes in our construction work in progress were as follows (in millions):


	Six months ended
	June 30,
	2021		2020
Construction work in progress, beginning of period	$	828	$	753

Capital expenditures
Newbuild construction program		77		70
Other equipment and construction projects		23		83
Total capital expenditures		100		153
Changes in accrued capital additions		(9)		(31)

Property and equipment placed into service		(18)		(98)
Construction work in progress, end of period	$	901	$	777

Impairments of assets held and used—During the three months ended March 31, 2020, we identified indicators that the carrying amounts of our asset groups may not be recoverable. Such indicators included significant declines in commodity prices and the market value of our stock, a reduction of expected demand for our drilling services as our customers announced reductions of capital investments in response to commodity prices and a reduction of projected dayrates. As a result of our testing, we determined that the carrying amount of our midwater floater asset group was impaired. In the six months ended June 30, 2020, we recognized a loss of $31 million ($0.05 per diluted share), which had no tax effect, associated with the impairment of our midwater floater asset group. We measured the fair value of the drilling unit and related assets in this asset group by applying the market approach, using estimates of the exchange price that would be received for the assets in the principal or most advantageous markets for the assets in an orderly transaction between participants as of the measurement date. Our estimate of fair value required us to use significant other observable inputs, representative of Level 2 fair value measurements, including the marketability of the rig and prices of comparable rigs that may be sold for scrap value.

Impairments of assets held for sale—During the six months ended June 30, 2020, we announced our intent to sell or retire, in an environmentally responsible way, the ultra-deepwater floater GSF Development Driller II, the harsh environment floaters Polar Pioneer and Songa Dee and the midwater floaters Sedco 711, Sedco 714 and Transocean 712, along with related assets. In the three and six months ended June 30, 2020, we recognized an aggregate loss of $419 million ($420 million, or $0.68 per diluted share, net of tax) and $556 million ($0.90 per diluted share), which had no tax effect, respectively, associated with the impairment of these assets, which we determined were impaired at the time we classified the assets as held for sale. We measured the impairment of the drilling units and related assets as the amount by which the carrying amount exceeded the estimated fair value less costs to sell. We estimated the fair value of the assets using significant other observable inputs, representative of Level 2 fair value measurements, including indicative market values for the drilling units and related assets to be sold for scrap value or other purposes.

Dispositions—During the six months ended June 30, 2021, in connection with our efforts to dispose of non-strategic assets, we completed the sale of the harsh environment floater Leiv Eiriksson and related assets. In the six months ended June 30, 2021, we received aggregate net cash proceeds of $4 million and recognized an aggregate net loss of $60 million ($0.10 per diluted share), which had no tax effect, associated with the disposal of these assets. In the six months ended June 30, 2020, we completed the sale of the midwater floater Sedco 714 and related assets, and we received aggregate net cash proceeds of $2 million associated with the disposal of these assets.

Revenues (Contract liabilities) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Contract balances
Deferred contract revenues, recorded in other current liabilities	$ 102	$ 133
Deferred contract revenues, recorded in other long-term liabilities	282	323
Total contract liabilities	$ 384	$ 456	$ 519	$ 529

Loss Per Share

6 Months Ended

Jun. 30, 2021

Loss Per Share

Loss Per Share

Note 9—Loss Per Share

The computations of basic and diluted loss per share were as follows (in millions, except per share data):


	Three months ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Numerator for loss per share, basic and diluted
Net loss attributable to controlling interest	$	(103)	$	(497)	$	(202)	$	(889)

Denominator for loss per share, basic and diluted
Weighted-average shares outstanding		620		614		618		614
Effect of share-based awards		1		1		1		1
Weighted-average shares for per share calculation		621		615		619		615

Loss per share, basic and diluted	$	(0.17)	$	(0.81)	$	(0.33)	$	(1.45)

In the three and six months ended June 30, 2021, we excluded from the calculation 13.3 million and 12.9 million shares, respectively, issuable pursuant to share-based awards since the effect would have been antidilutive. In the three and six months ended June 30, 2020, we excluded from the calculation 14.8 million and 13.0 million shares, respectively, issuable pursuant to share-based awards since the effect would have been antidilutive. In the three and six months ended June 30, 2021, we excluded from the calculation 108.0 million and 101.0 million shares, respectively, issuable upon exchange of the 0.50% Exchangeable Senior Bonds, the 2.50% Senior Guaranteed Exchangeable Bonds and the 4.00% Senior Guaranteed Exchangeable Bonds since the effect would have been antidilutive. In the three and six months ended June 30, 2020, we excluded from the calculation 84.0 million shares, respectively, issuable upon exchange of the 0.50% Exchangeable Senior Bonds since the effect would have been antidilutive.

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Financial Instruments

Carrying amounts and fair values of the financial instruments


	June 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
Cash and cash equivalents	$	988	$	988	$	1,154	$	1,154
Restricted cash and cash equivalents		502		502		406		406
Long-term loans receivable from unconsolidated affiliates		35		31		2		2
Total debt		7,527		6,586		7,807		4,820

Financial Instruments

6 Months Ended

Jun. 30, 2021

Financial Instruments

Financial Instruments

Note 12—Financial Instruments

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


	June 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
Cash and cash equivalents	$	988	$	988	$	1,154	$	1,154
Restricted cash and cash equivalents		502		502		406		406
Long-term loans receivable from unconsolidated affiliates		35		31		2		2
Total debt		7,527		6,586		7,807		4,820

Cash and cash equivalents—Our cash and cash equivalents are primarily invested in demand deposits, short-term time deposits and money market funds. The carrying amount of our cash and cash equivalents represents the historical cost, plus accrued interest, which approximates fair value because of the short maturities of the instruments.

Restricted cash and cash equivalents—Our restricted cash and cash equivalents, which are subject to restrictions due to collateral requirements, legislation, regulation or court order, are primarily invested in demand deposits and money market funds. The carrying amount of our restricted cash and cash equivalents represents the historical cost, plus accrued interest, which approximates fair value because of the short maturities of the instruments.

Long-term loans receivable from unconsolidated affiliates—The carrying amount of our long-term loans receivable from unconsolidated affiliates, recorded in other assets, represents the principal amount of the cash investment. We measured the estimated fair value of our long-term loans receivable from unconsolidated affiliates using significant unobservable inputs, representative of a Level 3 fair value measurement, including the terms and credit spreads for the instruments.

Total debt—The carrying amount of our total debt represents the principal amount, net of unamortized discounts, premiums, issue costs and fair value adjustments along with contractual interest payments of previously restructured debt. The carrying amount and fair value of our total debt includes amounts related to certain exchangeable debt instruments (see Note 7—Debt). We measured the estimated fair value of our total debt using significant other observable inputs, representative of a Level 2 fair value measurement, including the terms and credit spreads for 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 + Details

Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Loss Per Share

Loss Per Share

The computations of basic and diluted loss per share were as follows (in millions, except per share data):


	Three months ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Numerator for loss per share, basic and diluted
Net loss attributable to controlling interest	$	(103)	$	(497)	$	(202)	$	(889)

Denominator for loss per share, basic and diluted
Weighted-average shares outstanding		620		614		618		614
Effect of share-based awards		1		1		1		1
Weighted-average shares for per share calculation		621		615		619		615

Loss per share, basic and diluted	$	(0.17)	$	(0.81)	$	(0.33)	$	(1.45)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 988	$ 1,154
Accounts receivable, net of allowance of $2 at June 30, 2021 and December 31, 2020	539	583
Materials and supplies, net of allowance of $145 and $143 at June 30, 2021 and December 31, 2020, respectively	433	434
Restricted cash and cash equivalents	502	406
Other current assets	156	163
Total current assets	2,618	2,740
Property and equipment	23,054	23,040
Less accumulated depreciation	(5,718)	(5,373)
Property and equipment, net	17,336	17,667
Contract intangible assets	280	393
Deferred income taxes, net	8	9
Other assets	956	995
Total assets	21,198	21,804
Liabilities and equity
Accounts payable	198	194
Accrued income taxes	8	28
Debt due within one year	536	505
Other current liabilities	577	659
Total current liabilities	1,319	1,386
Long-term debt	6,991	7,302
Deferred income taxes, net	325	315
Other long-term liabilities	1,251	1,366
Total long-term liabilities	8,567	8,983
Commitments and contingencies
Shares, CHF 0.10 par value, 891,379,015 authorized, 142,363,647 conditionally authorized, 685,676,165 issued and 634,629,502 outstanding at June 30, 2021, and 824,650,660 authorized, 142,363,647 conditionally authorized, 639,676,165 issued and 615,140,276 outstanding at December 31, 2020	62	60
Additional paid-in capital	13,578	13,501
Accumulated deficit	(2,068)	(1,866)
Accumulated other comprehensive loss	(264)	(263)
Total controlling interest shareholders' equity	11,308	11,432
Noncontrolling interest	4	3
Total equity	11,312	11,435
Total liabilities and equity	$ 21,198	$ 21,804

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss	$ (497)	$ (201)	$ (888)
Adjustments to reconcile to net cash provided by operating activities:
Contract intangible asset amortization		113	101
Depreciation and amortization	196	373	402
Share-based compensation expense		14	15
Loss on impairment	429		597
Loss on impairment of investment in unconsolidated affiliates			59
Loss on disposal of assets, net	(1)	58
(Gain) loss on retirement of debt	(4)	(51)	53
Deferred income tax expense		11	30
Other, net		14	32
Changes in deferred revenues, net		(72)	(10)
Changes in deferred costs, net		7	(4)
Changes in other operating assets and liabilities, net		(17)	(348)
Net cash provided by operating activities		249	39
Cash flows from investing activities
Capital expenditures		(100)	(153)
Proceeds from disposal of assets, net		7	3
Investments in loans to unconsolidated affiliates		(33)
Investments in unconsolidated affiliates			(6)
Net cash used in investing activities		(126)	(156)
Cash flows from financing activities
Repayments of debt		(239)	(1,009)
Proceeds from issuance of shares		66
Proceeds from issuance of debt, net of issue costs			743
Other, net		(20)	(18)
Net cash used in financing activities		(193)	(284)
Net decrease in unrestricted and restricted cash and cash equivalents		(70)	(401)
Unrestricted and restricted cash and cash equivalents, beginning of period		1,560	2,349
Unrestricted and restricted cash and cash equivalents, end of period	$ 1,948	$ 1,490	$ 1,948

Income Taxes (Provision) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Provision) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Taxes
Effective tax rate			7.70%	(3.20%)
Income tax expense (benefit)	$ 4	$ 32	$ (17)	$ 28
Various discrete tax items expense (benefit)			$ (33)	$ (9)
Annual effective tax rate excluding discrete items (as a percent)			(7.80%)	(12.00%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Revenues

6 Months Ended

Jun. 30, 2021

Revenues

Revenues

Note 5—Revenues

Overview—The duration of our performance obligation varies by contract. As of June 30, 2021, the drilling contract with the longest expected remaining duration, excluding unexercised options, extends through February 2028. In the three and six months ended June 30, 2021, we recognized pre-operating costs of $16 million and $30 million, respectively. In the three and six months ended June 30, 2020, we recognized pre-operating costs of $23 million and $32 million, respectively. At June 30, 2021 and December 31, 2020, the carrying amount of our unrecognized pre-operating costs to obtain contracts was $10 million and $20 million, respectively, recorded in other assets.

In June 2020, we entered into a settlement and mutual release agreement with a customer, which provided for the final settlement of disputes related to performance obligations satisfied in prior periods. In connection with the settlement, among other things, our customer agreed to pay us $185 million in four equal installments through January 15, 2023. In the three and six months ended June 30, 2020, we recognized revenues of $177 million, representing the discounted value of the future payments, and recorded corresponding accounts receivable, net of imputed interest. At June 30, 2021 and December 31, 2020, the aggregate carrying amount of the related receivable was $88 million and $133 million, respectively, net of imputed interest, including $45 million, recorded in accounts receivable, and $43 million and $88 million, respectively, recorded in other assets.

Disaggregation—Our contract drilling revenues, disaggregated by asset group and by country in which they were earned, were as follows (in millions):


	Three months ended June 30, 2021								Three months ended June 30, 2020
	U.S.		Norway		Other		Total		U.S.		Norway		Other		Total
Ultra-deepwater floaters	$	273	$	—	$	151	$	424	$	440	$	—	$	196	$	636
Harsh environment floaters		—		222		10		232		—		207		86		293
Midwater floaters		—		—		—		—		—		—		1		1
Total contract drilling revenues	$	273	$	222	$	161	$	656	$	440	$	207	$	283	$	930


	Six months ended June 30, 2021								Six months ended June 30, 2020
	U.S.		Norway		Other		Total		U.S.		Norway		Other		Total
Ultra-deepwater floaters	$	539	$	—	$	321	$	860	$	727	$	—	$	437	$	1,164
Harsh environment floaters		4		424		21		449		—		414		99		513
Midwater floaters		—		—		—		—		—		—		12		12
Total contract drilling revenues	$	543	$	424	$	342	$	1,309	$	727	$	414	$	548	$	1,689

Contract liabilities—The contract liabilities for our contracts with customers were as follows (in millions):


	June 30,		December 31,
	2021		2020
Deferred contract revenues, recorded in other current liabilities	$	102	$	133
Deferred contract revenues, recorded in other long-term liabilities		282		323
Total contract liabilities	$	384	$	456

The changes in contract liabilities were as follows (in millions):


	Six months ended
	June 30,
	2021		2020
Total contract liabilities, beginning of period	$	456	$	529
Decrease due to recognition of revenues for goods and services		(81)		(108)
Increase due to goods and services transferred over time		9		98
Total contract liabilities, end of period	$	384	$	519

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Business

6 Months Ended

Jun. 30, 2021

Business

Business

Note 1—Business

Transocean Ltd. (together with its subsidiaries and predecessors, unless the context requires otherwise, “Transocean,” “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 ultra-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. As of June 30, 2021, we owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater floaters and 10 harsh environment floaters. As of June 30, 2021, we were constructing two ultra-deepwater drillships.

Income Taxes

6 Months Ended

Jun. 30, 2021

Income Taxes

Income Taxes

Note 8—Income Taxes

Tax provision and rate—In the six months ended June 30, 2021 and 2020, our effective tax rate was 7.7 percent and (3.2) percent, respectively, based on loss before income tax expense or benefit. In the six months ended June 30, 2021 and 2020, the effect of various discrete period tax items was a net tax benefit of $33 million and $9 million, respectively. In the six months ended June 30, 2021, such discrete items included loss on disposal of assets, gain on retirement of debt and expiration and settlements of various uncertain tax positions. In the six months ended June 30, 2020, such discrete items included the revenues recognized for the settlement of disputes, the loss on impairment of an investment in an unconsolidated affiliate, the carryback of net operating losses in the U.S. as a result of the Coronavirus Aid, Relief, and Economic Security Act, which included the release of valuation allowances previously recorded, as well as settlements and expirations of various uncertain tax positions, gains and losses on currency exchange rates and changes in valuation allowances. In the six months ended June 30, 2021 and 2020, our effective tax rate, excluding discrete items, was (7.8) percent and (12.0) percent, respectively, based on loss before income tax expense.

Tax returns—Tax authorities in certain jurisdictions are examining our tax returns and, in some cases, have issued assessments. We intend to defend our tax positions vigorously, although we can provide no assurance as to the outcome. We do not expect the ultimate liability to have a material adverse effect on our condensed consolidated statement of financial position or results of operations, although it could have a material adverse effect on our condensed consolidated statement of cash flows.

Brazil tax investigations—In December 2005, the Brazilian tax authorities began issuing tax assessments with respect to our tax returns for the years 2000 through 2004. In May 2014, the Brazilian tax authorities issued an additional tax assessment for the years 2009 and 2010. We filed protests with the Brazilian tax authorities for the assessments and are currently engaged in the appeals process. During the years ended December 31, 2018 and 2019, a portion of the two cases was favorably closed. As of June 30, 2021, the remaining

aggregate tax assessment, including interest and penalties, was for corporate income tax of BRL 631 million, equivalent to approximately $127 million, and indirect tax of BRL 108 million, equivalent to $22 million. We believe our returns are materially correct as filed, and we are vigorously contesting these assessments. An unfavorable outcome on these proposed assessments could have a material adverse effect on our condensed consolidated statement of financial position, results of operations or cash flows.

Other tax matters—We conduct operations through our various subsidiaries in 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 adjustments to have a material adverse effect on our condensed 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 + Details

Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Significant Accounting Policies

Significant Accounting Policies

Note 2—Significant Accounting Policies

Presentation—We 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. 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 six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, 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, 2020 and 2019, and for each of the three years in the period ended December 31, 2020, included in our annual report on Form 10-K filed on March 1, 2021.

Accounting estimates—To prepare financial statements in accordance with accounting principles generally accepted in the U.S., we must 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 income taxes, property and equipment, equity investments, contingencies, allowance for excess materials and supplies, assets held for sale, intangibles, allowance for credit losses, leases, share-based compensation and postemployment benefit plans. We base our estimates and assumptions on historical experience and other factors that we believe are reasonable. 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 a valuation requires multiple input levels, 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.

Debt (Settled) (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
Debt (Settled) (Details) - USD ($) $ in Millions	Feb. 26, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Debt
Debt retirement			$ 324	$ 790
Aggregate cash payment			12	830
Aggregate principal amount of debt issued in exchanges			294
Aggregate net gain (loss)		$ 4	$ 51	(53)
6.50% Senior Notes due November 2020
Debt
Debt instrument interest rate stated percentage			6.50%
Debt retirement				8
6.375% Senior Notes due December 2021
Debt
Debt instrument interest rate stated percentage			6.375%
Debt retirement				38
3.80% Senior Notes due October 2022
Debt
Debt instrument interest rate stated percentage			3.80%
Debt retirement				8
0.50% Exchangeable Senior Bonds due January 2023
Debt
Debt instrument interest rate stated percentage			0.50%
Debt retirement			$ 323
Aggregate cash payment	$ 11
5.375% Senior Secured Notes due May 2023
Debt
Debt instrument interest rate stated percentage			5.375%
Debt retirement			$ 1	22
9.00% Senior Notes due July 2023
Debt
Debt instrument interest rate stated percentage			9.00%
Debt retirement				714
Redeemed
Debt
Debt retirement				714
Aggregate cash payment				767
Aggregate net gain (loss)				(65)
Redeemed \| 9.00% Senior Notes due July 2023
Debt
Debt retirement				714
Repurchased
Debt
Debt retirement			$ 1	76
Aggregate cash payment			1	63
Aggregate net gain (loss)				12
Repurchased \| 6.50% Senior Notes due November 2020
Debt
Debt retirement				8
Repurchased \| 6.375% Senior Notes due December 2021
Debt
Debt retirement				38
Repurchased \| 3.80% Senior Notes due October 2022
Debt
Debt retirement				8
Repurchased \| 5.375% Senior Secured Notes due May 2023
Debt
Debt retirement			1	$ 22
Exchanged
Debt
Debt retirement			323
Aggregate cash payment			11
Aggregate principal amount of debt issued in exchanges			294
Aggregate net gain (loss)			51
Exchanged \| 0.50% Exchangeable Senior Bonds due January 2023
Debt
Debt retirement			$ 323

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total controlling interest shareholders' equity	Shares	Additional paid-in capital	Accumulated deficit Period of Adoption, Adjustment	Accumulated deficit	Accumulated other comprehensive loss	Noncontrolling interest	Total
Balance at Dec. 31, 2019	$ 11,862	$ 59	$ 13,424		$ (1,297)	$ (324)	$ 5	$ 11,867
Increase (Decrease) in Shareholders' Equity
Share-based compensation	15		15					15
Issuance of shares		1	(1)
Net loss attributable to controlling interest					(889)			(889)
Other comprehensive income (loss) attributable to controlling interest						(5)		(5)
Total comprehensive loss attributable to controlling interest	(894)							(894)
Total comprehensive income attributable to noncontrolling interest							1
Total comprehensive loss								(893)
Other, net	(2)							(2)
Balance at Jun. 30, 2020	10,981	60	13,438	$ (2)	(2,188)	(329)	6	10,987
Balance at Dec. 31, 2019	11,862	59	13,424		(1,297)	(324)	5	11,867
Balance at Dec. 31, 2020	11,432	60	13,501		(1,866)	(263)	3	11,435
Balance at Mar. 31, 2020	11,469	60	13,431		(1,691)	(331)	6	11,475
Increase (Decrease) in Shareholders' Equity
Share-based compensation	7		7					7
Net loss attributable to controlling interest					(497)			(497)
Other comprehensive income (loss) attributable to controlling interest						2		2
Total comprehensive loss attributable to controlling interest	(495)							(495)
Total comprehensive loss								(495)
Balance at Jun. 30, 2020	10,981	60	13,438	$ (2)	(2,188)	(329)	6	10,987
Balance at Dec. 31, 2020	11,432	60	13,501		(1,866)	(263)	3	11,435
Increase (Decrease) in Shareholders' Equity
Share-based compensation	14		14					14
Issuance of shares	66	2	64					66
Net loss attributable to controlling interest					(202)			(202)
Other comprehensive income (loss) attributable to controlling interest						(1)		(1)
Total comprehensive loss attributable to controlling interest	(203)							(203)
Total comprehensive income attributable to noncontrolling interest							1
Total comprehensive loss								(202)
Other, net	(1)		(1)					(1)
Balance at Jun. 30, 2021	11,308	62	13,578		(2,068)	(264)	4	11,312
Balance at Mar. 31, 2021	11,336	60	13,508		(1,965)	(267)	4	11,340
Increase (Decrease) in Shareholders' Equity
Share-based compensation	7		7					7
Issuance of shares	66	2	64					66
Net loss attributable to controlling interest					(103)			(103)
Other comprehensive income (loss) attributable to controlling interest						3		3
Total comprehensive loss attributable to controlling interest	(100)							(100)
Total comprehensive loss								(100)
Other, net	(1)		(1)					(1)
Balance at Jun. 30, 2021	$ 11,308	$ 62	$ 13,578		$ (2,068)	$ (264)	$ 4	$ 11,312

Unconsolidated Affiliates (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Unconsolidated Affiliates (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investments
Loss on impairment of investment in unconsolidated affiliates				$ 59
Aggregate carrying amount of equity investment	$ 139		$ 139		$ 138
Investments in loans to unconsolidated affiliates			$ 33
Orion/Transocean Norge
Investments
Ownership percentage	33.00%		33.00%
Loss on impairment of investment in unconsolidated affiliates		$ 59
Aggregate carrying amount of equity investment	$ 105		$ 105		$ 104
Related party transaction		$ 26		$ 31
Investments in loans to unconsolidated affiliates	33
Affiliate loan receivable	$ 33		$ 33
Orion/Transocean Norge \| LIBOR
Investments
Loan receivable interest rate (as a percent)	6.50%		6.50%
Orion/Transocean Norge \| Orion/Transocean Norge
Investments
Loan payable	$ 100		$ 100
Orion/Transocean Norge \| Discount rate
Investments
Investment fair value measurement	12		12

Debt (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of debt


	Principal amount				Carrying amount
	June 30,		December 31,		June 30,		December 31,
	2021		2020		2021		2020
6.375% Senior Notes due December 2021	$	38	$	38	$	38	$	38
5.52% Senior Secured Notes due May 2022		66		111		66		111
3.80% Senior Notes due October 2022		27		27		27		27
0.50% Exchangeable Senior Bonds due January 2023		140		463		140		462
5.375% Senior Secured Notes due May 2023		347		364		345		360
5.875% Senior Secured Notes due January 2024		544		585		537		577
7.75% Senior Secured Notes due October 2024		330		360		325		354
6.25% Senior Secured Notes due December 2024		344		375		339		369
6.125% Senior Secured Notes due August 2025		435		468		428		461
7.25% Senior Notes due November 2025		411		411		406		405
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		294		—		261		—
7.50% Senior Notes due January 2026		569		569		565		565
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		238		238		274		277
11.50% Senior Guaranteed Notes due January 2027		687		687		1,113		1,139
6.875% Senior Secured Notes due February 2027		550		550		543		542
8.00% Senior Notes due February 2027		612		612		607		606
7.45% Notes due April 2027		52		52		51		51
8.00% Debentures due April 2027		22		22		22		22
7.00% Notes due June 2028		261		261		265		266
7.50% Notes due April 2031		396		396		394		394
6.80% Senior Notes due March 2038		610		610		605		605
7.35% Senior Notes due December 2041		177		177		176		176
Total debt		7,150		7,376		7,527		7,807

Less debt due within one year
6.375% Senior Notes due December 2021		38		38		38		38
5.52% Senior Secured Notes due May 2022		66		93		66		92
5.375% Senior Secured Notes due May 2023		63		47		62		46
5.875% Senior Secured Notes due January 2024		83		83		80		80
7.75% Senior Secured Notes due October 2024		60		60		58		58
6.25% Senior Secured Notes due December 2024		62		62		60		60
6.125% Senior Secured Notes due August 2025		66		66		64		64
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		—		—		6		6
11.50% Senior Guaranteed Notes due January 2027		—		—		70		61
6.875% Senior Secured Notes due February 2027		34		—		32		—
Total debt due within one year		472		449		536		505
Total long-term debt	$	6,678	$	6,927	$	6,991	$	7,302

Scheduled maturities of debt


	Principal		Other
	installments		installments		Total
Twelve months ending June 30,
2022	$	472	$	76	$	548
2023		791		76		867
2024		642		77		719
2025		455		77		532
2026		1,528		78		1,606
Thereafter		3,262		78		3,340
Total installments of debt	$	7,150	$	462		7,612
Total debt-related balances, net						(85)
Total carrying amount of debt					$	7,527

Schedule of debt retirements


	Six months ended June 30,
	2021						2020
	Exchanged		Repurchased		Total		Redeemed		Repurchased		Total
6.50% Senior Notes due November 2020	$	—	$	—	$	—	$	—	$	8	$	8
6.375% Senior Notes due December 2021		—		—		—		—		38		38
3.80% Senior Notes due October 2022		—		—		—		—		8		8
0.50% Exchangeable Senior Bonds due January 2023		323		—		323		—		—		—
5.375% Senior Secured Notes due May 2023		—		1		1		—		22		22
9.00% Senior Notes due July 2023		—		—		—		714		—		714
Aggregate principal amount retired	$	323	$	1	$	324	$	714	$	76	$	790

Aggregate cash payment	$	11	$	1	$	12	$	767	$	63	$	830
Aggregate principal amount of debt issued in exchanges	$	294	$	—	$	294	$	—	$	—	$	—
Aggregate net gain (loss)	$	51	$	—	$	51	$	(65)	$	12	$	(53)

Exchanged

Schedule of debt


			Implied
	Exchange		exchange		Shares
	rate		price		issuable
0.50% Exchangeable Senior Bonds due January 2023		97.29756	$	10.28		13.6
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		190.47620		5.25		56.0
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		162.16260		6.17		38.6


	Effective		Fair
	interest rate		value
0.50% Exchangeable Senior Bonds due January 2023		0.5%	$	125
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		6.9%		349
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		0.0%		262

Contingencies (Details) - Asbestos litigation	Jun. 30, 2021 lawsuit plaintiff
Contingencies
Number of claims \| lawsuit	281
LA
Contingencies
Number of claims	9
Illinois and Missouri
Contingencies
Number of claims	16

Equity (Share Issuance) (Details) - USD ($) shares in Millions, $ in Millions		3 Months Ended	6 Months Ended
	Jun. 14, 2021	Jun. 30, 2021	Jun. 30, 2021
Equity
Proceeds from issuance of shares			$ 66
2021 ATM Program
Equity
Maximum value shares to be issued	$ 400
Proceeds from issuance of shares		$ 66
Aggregate sale of shares (in shares)		15.2

Equity

6 Months Ended

Jun. 30, 2021

Equity

Equity

Note 11—Equity

Share issuance—On June 14, 2021, we entered into an equity distribution agreement with a sales agent for the offer and sale of our shares, with up to a maximum aggregate net offering price of $400 million, pursuant to an at-the-market equity offering (the “ATM Program”). We intend to use the net proceeds from the ATM Program for general corporate purposes, which may include, among other things the repayment or refinancing of indebtedness and the funding of working capital, capital expenditures, investments and additional balance sheet liquidity. In the three months ended June 30, 2021, we received aggregate cash proceeds of $66 million, net of issue costs, for the aggregate sale of 15.2 million shares under the ATM Program. See Note 13—Subsequent Events.

Drilling Fleet (Details) - USD ($) $ in Millions	6 Months Ended
Drilling Fleet (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest
Total capital expenditures	$ 100	$ 153
Construction in Progress
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest
Construction work in progress, at beginning of period	828	753
Total capital expenditures	100	153
Changes in accrued capital additions	(9)	(31)
Property and equipment placed into service	(18)	(98)
Construction work in progress, at end of period	901	777
New builds
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest
Total capital expenditures	77	70
Other equipment and construction projects
Changes in construction work in progress, including capital expenditures and other capital additions, such as capitalized interest
Total capital expenditures	$ 23	$ 83

Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Principal amount
Total installments of debt	$ 7,150	$ 7,376
Debt due within one year	472	449
Long-term debt	6,678	6,927
Carrying amount
Total debt	7,527	7,807
Debt due within one year	536	505
Long-term debt	6,991	7,302
6.375% Senior Notes due December 2021
Principal amount
Total installments of debt	38	38
Debt due within one year	38	38
Carrying amount
Total debt	38	38
Debt due within one year	$ 38	38
Debt instrument interest rate stated percentage	6.375%
5.52% Senior Secured Notes due May 2022
Principal amount
Total installments of debt	$ 66	111
Debt due within one year	66	93
Carrying amount
Total debt	66	111
Debt due within one year	$ 66	92
Debt instrument interest rate stated percentage	5.52%
3.80% Senior Notes due October 2022
Principal amount
Total installments of debt	$ 27	27
Carrying amount
Total debt	$ 27	27
Debt instrument interest rate stated percentage	3.80%
0.50% Exchangeable Senior Bonds due January 2023
Principal amount
Total installments of debt	$ 140	463
Carrying amount
Total debt	$ 140	462
Debt instrument interest rate stated percentage	0.50%
5.375% Senior Secured Notes due May 2023
Principal amount
Total installments of debt	$ 347	364
Debt due within one year	63	47
Carrying amount
Total debt	345	360
Debt due within one year	$ 62	46
Debt instrument interest rate stated percentage	5.375%
5.875% Senior Secured Notes due January 2024
Principal amount
Total installments of debt	$ 544	585
Debt due within one year	83	83
Carrying amount
Total debt	537	577
Debt due within one year	$ 80	80
Debt instrument interest rate stated percentage	5.875%
7.75% Senior Secured Notes due October 2024
Principal amount
Total installments of debt	$ 330	360
Debt due within one year	60	60
Carrying amount
Total debt	325	354
Debt due within one year	$ 58	58
Debt instrument interest rate stated percentage	7.75%
6.25% Senior Secured Notes due December 2024
Principal amount
Total installments of debt	$ 344	375
Debt due within one year	62	62
Carrying amount
Total debt	339	369
Debt due within one year	$ 60	60
Debt instrument interest rate stated percentage	6.25%
4.00% Senior Guaranteed Exchangeable Bonds due December 2025
Principal amount
Total installments of debt	$ 294
Carrying amount
Total debt	$ 261
Debt instrument interest rate stated percentage	4.00%
6.125% Senior Secured Notes due August 2025
Principal amount
Total installments of debt	$ 435	468
Debt due within one year	66	66
Carrying amount
Total debt	428	461
Debt due within one year	$ 64	64
Debt instrument interest rate stated percentage	6.125%
7.25% Senior Notes due November 2025
Principal amount
Total installments of debt	$ 411	411
Carrying amount
Total debt	$ 406	405
Debt instrument interest rate stated percentage	7.25%
7.50% Senior Notes due January 2026
Principal amount
Total installments of debt	$ 569	569
Carrying amount
Total debt	$ 565	565
Debt instrument interest rate stated percentage	7.50%
2.50% Senior Guaranteed Exchangeable Bonds due January 2027
Principal amount
Total installments of debt	$ 238	238
Carrying amount
Total debt	274	277
Debt due within one year	$ 6	6
Debt instrument interest rate stated percentage	2.50%
11.50% Senior Guaranteed Notes due January 2027
Principal amount
Total installments of debt	$ 687	687
Carrying amount
Total debt	1,113	1,139
Debt due within one year	$ 70	61
Debt instrument interest rate stated percentage	11.50%
6.875% Senior Secured Notes due February 2027
Principal amount
Total installments of debt	$ 550	550
Debt due within one year	34
Carrying amount
Total debt	543	542
Debt due within one year	$ 32
Debt instrument interest rate stated percentage	6.875%
8.00% Senior Notes due February 2027
Principal amount
Total installments of debt	$ 612	612
Carrying amount
Total debt	$ 607	606
Debt instrument interest rate stated percentage	8.00%
7.45% Notes due April 2027
Principal amount
Total installments of debt	$ 52	52
Carrying amount
Total debt	$ 51	51
Debt instrument interest rate stated percentage	7.45%
8.00% Debentures due April 2027
Principal amount
Total installments of debt	$ 22	22
Carrying amount
Total debt	$ 22	22
Debt instrument interest rate stated percentage	8.00%
7.00% Notes due June 2028
Principal amount
Total installments of debt	$ 261	261
Carrying amount
Total debt	$ 265	266
Debt instrument interest rate stated percentage	7.00%
7.50% Notes due April 2031
Principal amount
Total installments of debt	$ 396	396
Carrying amount
Total debt	$ 394	394
Debt instrument interest rate stated percentage	7.50%
6.80% Senior Notes due March 2038
Principal amount
Total installments of debt	$ 610	610
Carrying amount
Total debt	$ 605	605
Debt instrument interest rate stated percentage	6.80%
7.35% Senior Notes due December 2041
Principal amount
Total installments of debt	$ 177	177
Carrying amount
Total debt	$ 176	$ 176
Debt instrument interest rate stated percentage	7.35%