Transocean Proxy Statement and 2010 Annual Report

Liquidity and Capital Resources
Sources and Uses of Cash
Our primary sources of cash during the year ended December 31, 2010 were our cash flows from operating activities, proceeds
from the issuance in September 2010 of our 4.95% Senior Notes and our 6.50% Senior Notes and the receipt of insurance proceeds of
$560 million following the total loss of Deepwater Horizon. Our primary uses of cash were capital expenditures, primarily associated with
our newbuild projects, repurchases of our Convertible Senior Notes and repurchases of shares under our share repurchase program. At
December 31, 2010, we had $3.4 billion in cash and cash equivalents.
AR-48
Years ended December 31,
2010 2009 Change
(In millions)
Cash flows from operating activities
Net income $ 988 $ 3,170 $ (2,182)
Amortization of drilling contract intangibles (98) (281 ) 183
Depreciation, depletion and amortization 1,589 1,464 125
Loss on impairment 1,012 334 678
(Gain) loss on disposal of assets, net (257) 9 (266)
Other non-cash items 303 468 (165)
Changes in operating assets and liabilities, net 409 434 (25)
$ 3,946 $ 5,598 $ (1,652)
Net cash provided by operating activities decreased primarily due to less cash generated from net income, after adjusting for
non-cash items largely related to a loss on impairment to our Standard Jackup asset group and a gain on the loss of Deepwater Horizon
during the year ended December 31, 2010.
Years ended December 31,
2010 2009
(In millions)
Change
Cash flows from investing activities
Capital expenditures $ (1,411) $ (3,052 ) $ 1,641
Proceeds from disposal of assets, net 60 18 42
Proceeds from insurance recoveries for loss of drilling unit 560 — 560
Proceeds from payments on notes receivables 37 — 37
Proceeds from short-term investments 37 564 (527)
Purchases of short-term investments — (269 ) 269
Joint ventures and other investments, net (4) 45 (49)
$ (721) $ (2,694 ) $ 1,973
Net cash used in investing activities decreased primarily due to reduced capital expenditures, as five of our Ultra-Deepwater
Floaters were under construction during the year ended December 31, 2010 compared to 10 of our Ultra-Deepwater Floaters that were
under construction during the year ended December 31, 2009. In addition, net cash used in investing activities declined as a result of the
proceeds from insurance recoveries for the loss of Deepwater Horizon in the year ended December 31, 2010. These reductions of net
cash used in investing activities were partially offset by reduced proceeds from, and net of purchases of, short-term investments as a result
of diminished investing activity in marketable securities during the year ended December 31, 2010 compared to the year ended
December 31, 2009.