Transocean Proxy Statement and 2010 Annual Report

TRANSOCEAN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
Transocean Mercury and related equipment. As of December 31, 2010, Transocean Mercury had a net carrying amount of less than
$1 million, recorded in assets held for sale on our consolidated balance sheet. See Note 25—Subsequent Events.
During the year ended December 31, 2009, we received net proceeds of $10 million in connection with our sale of Sedco 135-D
and disposals of other unrelated property and equipment, and these disposals had no net effect on income taxes or net income. In
addition, we received net proceeds of $4 million in exchange for our 45 percent ownership interest in Caspian Drilling Company Limited,
which operates Dada Gorgud and Istigal under long-term bareboat charters with the owner of the rigs and $38 million in exchange for our
interest in Arab Drilling & Workover Company. During the year ended December 31, 2009, we recognized a loss on disposal of assets of
$9 million, which had no tax effect.
During the year ended December 31, 2008, we completed the sale of three Standard Jackups, GSF High Island VIII,
GSF Adriatic III and GSF High Island I. We received cash proceeds of $320 million associated with the sales, which had no effect on
earnings.
Deepwater Horizon—On April 22, 2010, the Ultra-Deepwater Floater Deepwater Horizon sank after a blowout of the
Macondo well caused a fire and explosion on the rig. The rig’s insured value was $560 million, which was not subject to a deductible, and
our insurance underwriters declared the vessel a total loss. During the year ended December 31, 2010, we received $560 million in cash
proceeds from insurance recoveries related to the loss of the drilling unit and, for the year ended December 31, 2010, we recognized a
gain on the loss of the rig in the amount of $267 million ($0.83 per diluted share), which had no tax effect. See Note 14—Commitments
and Contingencies.
Note 10—Goodwill and Other Intangible Assets
Goodwill and other indefinite-lived intangible assets—The gross carrying amounts of goodwill and accumulated impairment
were as follows (in millions):
Year ended December 31, 2010 Year ended December 31, 2009
Gross
carrying
amount
AR-90
Accumulated
impairment
Net
carrying
amount
Gross
carrying
amount
Accumulated
impairment
Contract drilling services
Balance, beginning of period $ 10,626 $ (2,494) $ 8,132 $ 10,620 $ (2,494 ) $ 8,126
Purchase price adjustment — — — 6 — 6
Balance, end of period 10,626 (2,494) 8,132 10,626 (2,494 ) 8,132
Drilling management services
Balance, beginning of period 176 (176) — 176 (176 ) —
Balance, end of period 176 (176) — 176 (176 ) —
Oil and gas properties
Balance, beginning of period 2 — 2 2 — 2
Impairment — (2) (2) — — —
Balance, end of period 2 (2) — 2 — 2
Total goodwill
Balance, beginning of period 10,804 (2,670) 8,134 10,798 (2,670 ) 8,128
Impairment — (2) (2) — — —
Purchase price adjustment — — — 6 — 6
Balance, end of period $ 10,804 $ (2,672) $ 8,132 $ 10,804 $ (2,670 ) $ 8,134
The gross carrying amounts of the ADTI trade name, which we consider to be an indefinite-lived intangible asset, and
accumulated impairment were as follows (in millions):
Net
carrying
amount
Year ended December 31, 2010 Year ended December 31, 2009
Gross
carrying
amount
Accumulated
impairment
Net
carrying
amount
Gross
carrying
amount
Accumulated
impairment
Trade name
Balance, beginning of period $ 76 $ (37 ) $ 39 $ 76 $ (31 ) $ 45
Impairment — — — — (6 ) (6 )
Balance, end of period $ 76 $ (37) $ 39 $ 76 $ (37 ) $ 39
Net
carrying
amount