TRANSOCEAN LTD. (NYSE:RIG) Files An 8-K Material ImpairmentsItem 2.06Material Impairments.
On September 22, 2017, Transocean Ltd. (the "Company") announced that it intends to dispose of, in an environmentally responsible way, the following six rigs: the five ultra-deepwater floaters GSF Jack Ryan, Sedco Energy, Sedco Express, Cajun Express and Deepwater Pathfinder and the deepwater floater Transocean Marianas. These rigs are classified as held for sale. As a result of the Company’s decision to dispose of these six rigs on September 21, 2017, the Company concluded that it expects its third quarter 2017 results to include an estimated non-cash charge of approximately $1.4 billion. As the Company continues to evaluate the long-term competitiveness of its fleet, additional rigs may be identified as candidates for disposal.
The statements described in this Form 8-K that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements contain words such as "possible," "intend," "will," "if," "expect" or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas, the intention to scrap certain drilling rigs and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2016, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at www.deepwater.com.