Transocean Proxy Statement and 2010 Annual Report

TRANSOCEAN LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
ESPP—Through December 31, 2008, we offered an ESPP under which certain full-time employees could choose to have
between two and 20 percent of their annual base earnings withheld to purchase up to $21,150 of our shares each year. The purchase
price of the shares was 85 percent of the lower of the beginning-of-year or end-of-year market price of our shares. At December 31, 2008,
577,537 shares were available for issuance under the ESPP. As of January 1, 2009, we discontinued offering the ESPP.
Note 18—Supplemental Balance Sheet Information
Other current liabilities were comprised of the following (in millions):
AR-113
December 31,
2010 2009
Other current liabilities
Accrued payroll and employee benefits $ 272 $ 263
Deferred revenue 150 147
Accrued taxes, other than income 123 102
Accrued interest 97 83
Unearned income 15 15
Other 204 120
Total other current liabilities $ 861 $ 730
Other long-term liabilities were comprised of the following (in millions):
December 31,
2010 2009
Other long-term liabilities
Long-term income taxes payable $ 655 $ 594
Accrued pension liabilities 416 453
Deferred revenue 393 214
Drilling contract intangibles 152 268
Accrued retiree life insurance and medical benefits 53 51
Other 103 104
Total other long-term liabilities $ 1,772 $ 1,684
Note 19—Fair Value of Financial Instruments
We estimate the fair value of each class of financial instruments, for which estimating fair value is practicable, by applying the
following methods and assumptions:
Cash and cash equivalents—The carrying amount of cash and cash equivalents, which are stated at cost plus accrued interest,
approximates fair value because of the short maturities of those instruments.
Accounts receivable—The carrying amount, net of valuation allowance, approximates fair value because of the short maturities
of those instruments.
Short-term investments—The carrying amount of our short-term investments approximates fair value and represents our
estimate of the amount we expect to recover. Our short-term investments primarily include our investment in The Reserve International
Liquidity Fund Ltd. At December 31, 2010, we did not hold any short-term investments. At December 31, 2009, the carrying amount of our
short-term investments was $38 million, recorded in other current assets on our consolidated balance sheets (see Note 21—Supplemental
Cash Flow Information).
Notes receivable and working capital loan receivable—The carrying amount represents the estimated fair value, measured
using unobservable inputs that require significant judgment, for which there is little or no market data, including the credit rating of the
borrower. At December 31, 2010, the aggregate carrying amount of our notes receivable and working capital loan receivable was
$115 million, including $4 million and $111 million recorded in other current assets and other assets, respectively. We did not hold notes
receivable as of December 31, 2009.