Transocean Proxy Statement and 2010 Annual Report

TRANSOCEAN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
Note 11—Debt
Debt, net of unamortized discounts, premiums and fair value adjustments, was comprised of the following (in millions):
Transocean
Ltd.
and
subsidiaries
AR-92
December 31, 2010 December 31, 2009
Consolidated
variable
interest
entities
Consolidated
total
Transocean
Ltd.
and
subsidiaries
Consolidated
variable
interest
entities
Consolidated
total
ODL Loan Facility $ 10 $ — $ 10 $ 10 $ — $ 10
Commercial paper program (a) 88 — 88 281 — 281
6.625% Notes due April 2011 (a) 167 — 167 170 — 170
5% Notes due February 2013 255 — 255 247 — 247
5.25% Senior Notes due March 2013 (a) 511 — 511 496 — 496
TPDI Credit Facilities due March 2015 — 560 560 — 581 581
4.95% Senior Notes due November 2015 (a) 1,099 — 1,099 — — —
ADDCL Credit Facilities due November 2017 — 242 242 — 454 454
6.00% Senior Notes due March 2018 (a) 997 — 997 997 — 997
7.375% Senior Notes due April 2018 (a) 247 — 247 247 — 247
TPDI Notes due October 2019 — 148 148 — 148 148
6.50% Senior Notes due November 2020 (a) 899 — 899 — — —
Capital lease obligation due July 2026 — — — 15 — 15
8% Debentures due April 2027 (a) 57 — 57 57 — 57
7.45% Notes due April 2027 (a) 96 — 96 96 — 96
7% Notes due June 2028 313 — 313 313 — 313
Capital lease contract due August 2029 694 — 694 711 — 711
7.5% Notes due April 2031 (a) 598 — 598 598 — 598
1.625% Series A Convertible Senior Notes due December 2037 (a) 11 — 11 1,261 — 1,261
1.50% Series B Convertible Senior Notes due December 2037 (a) 1,625 — 1,625 2,057 — 2,057
1.50% Series C Convertible Senior Notes due December 2037 (a) 1,605 — 1,605 1,979 — 1,979
6.80% Senior Notes due March 2038 (a) 999 — 999 999 — 999
Total debt 10,271 950 11,221 10,534 1,183 11,717
Less debt due within one year
ODL Loan Facility 10 — 10 10 — 10
Commercial paper program (a) 88 — 88 281 — 281
6.625% Notes due April 2011 (a) 167 — 167 — — —
TPDI Credit Facilities due March 2015 — 70 70 — 52 52
ADDCL Credit Facilities due November 2017 — 25 25 — 248 248
Capital lease contract due August 2029 16 — 16 16 — 16
1.625% Series A Convertible Senior Notes due December 2037 (a) 11 — 11 1,261 — 1,261
1.50% Series B Convertible Senior Notes due December 2037 (a) 1,625 — 1,625 — — —
Total debt due within one year 1,917 95 2,012 1,568 300 1,868
Total long-term debt
______________________________
$ 8,354 $ 855 $ 9,209 $ 8,966 $ 883 $ 9,849
(a) Transocean Inc., a 100 percent owned subsidiary of Transocean Ltd., is the issuer of the notes and debentures, which have been guaranteed by
Transocean Ltd. Transocean Ltd. has also guaranteed borrowings under the commercial paper program and the Five-Year Revolving Credit Facility.
Transocean Ltd. has no independent assets or operations, its guarantee of debt securities of Transocean Inc. is full and unconditional and its only
other subsidiary, not owned indirectly through Transocean Inc., is minor. Transocean Inc.’s only operating assets are its investments in its operating
subsidiaries. Transocean Inc.’s independent assets and operations, other than those related to investments in its subsidiaries and balances
primarily pertaining to its cash and cash equivalents and debt are less than two percent of the total consolidated assets and operations of
Transocean Ltd., and thus, substantially all of the assets and operations exist within these non-guarantor operating companies. Furthermore,
Transocean Ltd. and Transocean Inc. are not subject to any significant restrictions on their ability to obtain funds from their consolidated subsidiaries
or entities accounted for under the equity method by dividends, loans or return of capital distributions.