Transocean Ltd. Reports Fourth Quarter and Full Year 2023 Results

February 19, 2024

             Three months ended     December 31,  September 30, Sequential 2023 2023 change(In millions, except per share amounts and backlog)           Contract drilling revenues$741   $713   $28  Adjusted contract drilling revenues$748   $721   $27  Revenue efficiency 97.0 %  95.4 %  1.6 %Operating and maintenance expense$569   $524   $45  Net loss attributable to controlling interest$(104)  $(220)  $116  Diluted loss per share$(0.13)  $(0.28)  $0.15              Adjusted EBITDA$122   $162   $(40) Adjusted EBITDA margin 16.3 %  22.5 %  (6.2)%Adjusted net loss$(74)  $(280)  $206  Adjusted diluted loss per share$(0.09)  $(0.36)  $0.27                          Backlog as of the February 2024 Fleet Status Report$9.01 billion                  

STEINHAUSEN, Switzerland, Feb. 19, 2024 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $104 million, $0.13 per diluted share, for the three months ended December 31, 2023.

Fourth quarter results included net unfavorable items of $30 million, $0.04 per diluted share as follows:

$24 million, $0.03 per diluted share, loss on conversion of debt to equity;$5 million, $0.01 per diluted share, loss on impairment of our investment in an unconsolidated affiliate; and$3 million, discrete tax items, net.

These unfavorable items were partially offset by:

$1 million gain on early retirement of debt;$1 million of other net favorable items.

After consideration of these net unfavorable items, fourth quarter 2023 adjusted net loss was $74 million, $0.09 per diluted share.

Contract drilling revenues for the three months ended December 31, 2023 increased sequentially by $28 million to $741 million due to increased average daily revenue and higher fleet revenue efficiency, as well as increased utilization on four rigs that were undergoing contract preparation and one rig that underwent a special periodic survey in the third quarter. This was partially offset by lower revenue generated by two rigs that were idle and two rigs that were undergoing contract preparation during the fourth quarter.

Contract intangible amortization represented a non-cash revenue reduction of $7 million, compared to $8 million in the prior quarter.

Operating and maintenance expense was $569 million, compared with $524 million in the prior quarter. The sequential increase was primarily due to rigs returning to work after undergoing contract preparation in the prior quarter and higher in-service maintenance costs across our fleet, partially offset by lower activity for two rigs that were idle in the fourth quarter.

After consideration of the fair value adjustment of the bifurcated exchange feature embedded in our 4.625% exchangeable bonds, which was favorable $145 million in the fourth quarter and unfavorable $93 million in the third quarter, interest expense net of amounts capitalized was $142 million, compared with $139 million in the prior period. Interest income was $10 million, compared with $12 million in the previous quarter.

The Effective Tax Rate(2) was (25.0)%, down from 16.3% in the prior quarter. The decrease was primarily due to reduced losses in the current quarter. The Effective Tax Rate excluding discrete items was (30.0)% compared to (8.7)% in the previous quarter.

Cash provided by operating activities was $98 million during the fourth quarter of 2023, representing an increase of $142 million compared to the prior quarter. The sequential increase was primarily due to timing of interest payments and increased collections from customers partially offset by decreased cash collected from, and increased payments to, our unconsolidated affiliates.

Fourth quarter 2023 capital expenditures of $220 million were primarily associated with the newbuild ultra-deepwater drillship Deepwater Aquila. This compares with $50 million in the prior quarter.

“We are very proud of our performance in 2023,” said Chief Executive Officer Jeremy Thigpen. “We added $3.2 billion of backlog in the calendar year, providing additional visibility to future cash flows. In addition to delivering standout personal and process safety results, we finished the year with a company-best 97.6% uptime performance. Notably, we generated these results in a year that included eight large-scale projects, including installation of the 20K BOP on the Deepwater Atlas, the industry’s first eighth-generation drillship, and the timely delivery and commissioning of the Deepwater Titan, our second eighth-generation drillship. Finally, we took delivery of our eighth 1,400 short ton drillship, the Deepwater Aquila.”

Thigpen concluded: “We remain encouraged by the continued tightness in the market and remain focused on delivering value to our shareholders as we progress through what we expect to be a multi-year upcycle.”

Full Year 2023

For the year ended December 31, 2023, net loss attributable to controlling interest totaled $954 million, $1.24 per diluted share. Full year results included $215 million, $0.28 per diluted share, net unfavorable items listed as follows:

$169 million, $0.22 per diluted share, loss on disposal of assets;$57 million, $0.07 per diluted share, loss on impairment of assets;$31 million, $0.04 per diluted share, loss on retirement of debt;$27 million, $0.04 per diluted share, loss on conversion of debt to equity; and$5 million, $0.01 per diluted share, loss on impairment of our investment in an unconsolidated affiliate; partially offset by,$74 million, $0.10 per diluted share, related to favorable discrete tax items.

After consideration of these net unfavorable items, adjusted net loss for 2023 was $739 million, $0.96 per diluted share.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 36 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and eight harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 9 a.m. EST, 3 p.m. CET, on Tuesday, February 20, 2024, to discuss the results. To participate, dial +1 785-424-1226 and refer to conference code 932678 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

A replay of the conference call will be available after 12 p.m. EST, 6 p.m. CET, on Tuesday, February 20, 2024. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-2660, passcode 932678. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could 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 and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, such as COVID-19, 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, 2022, 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.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

(1) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”(2) Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”   

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647

TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share data)(Unaudited)             Years ended December 31,      2023
 2022
 2021
             Contract drilling revenues $2,832  $2,575  $2,556             Costs and expenses          Operating and maintenance  1,986   1,679   1,697  Depreciation and amortization  744   735   742  General and administrative  187   182   167     2,917   2,596   2,606  Loss on impairment of assets  (57)  —   —  Loss on disposal of assets, net  (183)  (10)  (62) Operating loss  (325)  (31)  (112)            Other income (expense), net          Interest income  52   27   15  Interest expense, net of amounts capitalized  (646)  (561)  (447) Gain (loss) on retirement of debt  (31)  8   51  Other, net  9   (5)  23     (616)  (531)  (358) Loss before income tax expense  (941)  (562)  (470) Income tax expense  13   59   121             Net loss  (954)  (621)  (591) Net income attributable to noncontrolling interest  —   —   1  Net loss attributable to controlling interest $(954) $(621) $(592)            Loss per share, basic and diluted $(1.24) $(0.89) $(0.93) Weighted-average shares, basic and diluted  768   699   637  

TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)          December 31,    2023
 2022
  Assets       Cash and cash equivalents $762  $683  Accounts receivable, net  512   485  Materials and supplies, net  426   388  Restricted cash and cash equivalents  233   308  Other current assets  193   144  Total current assets  2,126   2,008          Property and equipment  23,875   24,217  Less accumulated depreciation  (6,934)  (6,748) Property and equipment, net  16,941   17,469  Contract intangible assets  4   56  Deferred tax assets, net  44   13  Other assets  1,139   890  Total assets $20,254  $20,436          Liabilities and equity       Accounts payable $323  $281  Accrued income taxes  23   19  Debt due within one year  370   719  Other current liabilities  681   539  Total current liabilities  1,397   1,558          Long-term debt  7,043   6,628  Deferred tax liabilities, net  540   493  Other long-term liabilities  858   965  Total long-term liabilities  8,441   8,086          Commitments and contingencies               Shares, CHF 0.10 par value, 1,021,294,549 authorized, 142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023, and 905,093,509 authorized, 142,362,675 conditionally authorized, 797,244,753 issued and 721,888,427 outstanding at December 31, 2022  81   71  Additional paid-in capital  14,544   13,984  Accumulated deficit  (4,033)  (3,079) Accumulated other comprehensive loss  (177)  (185) Total controlling interest shareholders’ equity  10,415   10,791  Noncontrolling interest  1   1  Total equity  10,416   10,792  Total liabilities and equity $20,254  $20,436  

TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)             Years ended December 31,    2023
 2022
 2021
               Cash flows from operating activities          Net loss $(954) $(621) $(591) Adjustments to reconcile to net cash provided by operating activities:          Amortization of contract intangible asset  52   117   220  Depreciation and amortization  744   735   742  Share-based compensation expense  40   29   28  Loss on impairment of assets  57   —   —  Loss on impairment of investment in unconsolidated affiliates  5   —   37  Loss on disposal of assets, net  183   10   62  Fair value adjustment to bifurcated compound exchange feature  127   157   —  Amortization of debt-related balances, net  51   33   25  (Gain) loss on retirement of debt  31   (8)  (51) Deferred income tax expense  18   46   128  Other, net  43   44   52  Changes in deferred revenues, net  70   (20)  (108) Changes in deferred costs, net  (190)  1   (6) Changes in other operating assets and liabilities, net  (113)  (75)  37  Net cash provided by operating activities  164   448   575             Cash flows from investing activities          Capital expenditures  (427)  (717)  (208) Investments in equity of unconsolidated affiliates  (10)  (42)  (1) Investment in loans to unconsolidated affiliates  (3)  (5)  (33) Proceeds from disposal of assets, net  10   7   9  Proceeds from acquisition of unconsolidated affiliate  7   —   —  Net cash used in investing activities  (423)  (757)  (233)            Cash flows from financing activities          Repayments of debt  (1,717)  (554)  (606) Proceeds from issuance of debt, net of issue costs  1,983   175   —  Proceeds from issuance of shares, net of issue costs  —   263   158  Proceeds from issuance of warrants, net of issue costs  —   12   —  Other, net  (3)  (8)  (42) Net cash provided by (used in) financing activities  263   (112)  (490)            Net increase (decrease) in unrestricted and restricted cash and cash equivalents  4   (421)  (148) Unrestricted and restricted cash and cash equivalents, beginning of period  991   1,412   1,560  Unrestricted and restricted cash and cash equivalents, end of period $995  $991  $1,412  

TRANSOCEAN LTD. AND SUBSIDIARIESFLEET OPERATING STATISTICS                                    Three months ended   Years ended   December 31,  September 30 December 31,   December 31,  December 31, Contract Drilling Revenues (in millions) 2023  2023  2022   2023  2022Ultra-deepwater floaters $536 $516 $434  $2,072 $1,708Harsh environment floaters  205  197  172   760  867Total contract drilling revenues $741 $713 $606  $2,832 $2,575

                   Three months ended   Years ended   December 31,  September 30 December 31,   December 31,  December 31, Average Daily Revenue (1) 2023  2023  2022   2023  2022Ultra-deepwater floaters $432,100 $406,500 $344,800  $393,700 $329,100Harsh environment floaters  354,700  357,400  357,900   354,300  380,000Total fleet average daily revenue $407,800 $391,300 $348,600  $382,300 $345,500

                   Three months ended   Years ended    December 31,   September 30  December 31,   December 31,   December 31, Utilization (2) 2023 2023 2022  2023 2022Ultra-deepwater floaters 46.8% 45.0% 47.9%  49.4% 50.1%Harsh environment floaters 66.7% 63.0% 53.5%  59.1% 64.9%Total fleet average rig utilization 51.6% 49.4% 49.4%  51.9% 54.1%

                   Three months ended   Years ended   December 31,  September 30 December 31,   December 31,  December 31, Revenue Efficiency (3) 2023 2023 2022  2023  2022Ultra-deepwater floaters 96.8% 94.3% 97.8%  96.5% 95.7%Harsh environment floaters 97.6% 98.1% 98.4%  97.8% 97.6%Total fleet average revenue efficiency 97.0% 95.4% 98.0%  96.8% 96.4%                                  (1) Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence.                 (2) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage.                 (3) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.

TRANSOCEAN LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (in millions, except per share data)                                                 YTD QTD YTD QTD YTD QTD YTD    12/31/23  12/31/23 09/30/23  09/30/23  06/30/23  06/30/23  03/31/23 Adjusted Net Loss                      Net loss attributable to controlling interest, as reported $(954) $(104) $(850) $(220) $(630) $(165) $(465) Loss on impairment of assets  57   (1)  58   5   53   53   —  Loss on disposal of assets, net  169   —   169   —   169   —   169  Loss on impairment of investment in unconsolidated affiliate  5   5   —   —   —   —   —  Loss on debt conversion  27   24   3   —   3   3   —  (Gain) Loss on retirement of debt  31   (1)  32   —   32   —   32  Discrete tax items  (74)  3   (77)  (65)  (12)  (1)  (11) Net loss, as adjusted $(739) $(74) $(665) $(280) $(385) $(110) $(275)                        Adjusted Diluted Loss Per Share:                      Diluted loss per share, as reported $(1.24) $(0.13) $(1.13) $(0.28) $(0.85) $(0.22) $(0.64) Loss on impairment of assets  0.07   —   0.08   0.01   0.07   0.07   —  Loss on disposal of assets, net  0.22   —   0.23   —   0.23   —   0.23  Loss on impairment of investment in unconsolidated affiliate  0.01   0.01   —   —   —   —   —  Loss on debt conversion  0.04   0.03   —   —   —   —   —  (Gain) Loss on retirement of debt  0.04   —   0.04   —   0.04   —   0.04  Discrete tax items  (0.10)  —   (0.10)  (0.09)  (0.01)  —   (0.01) Diluted loss per share, as adjusted $(0.96) $(0.09) $(0.88) $(0.36) $(0.52) $(0.15) $(0.38) 

                         YTD QTD YTD QTD YTD QTD YTD      12/31/22   12/31/22  09/30/22   09/30/22  06/30/22  06/30/22  03/31/22 Adjusted Net Loss                      Net loss attributable to controlling interest, as reported $(621) $(350) $(271) $(28) $(243) $(68) $(175) Gain on retirement of debt  (8)  (1)  (7)  (7)  —   —   —  Discrete tax items  (19)  (5)  (14)  (6)  (8)  —   (8) Net loss, as adjusted $(648) $(356) $(292) $(41) $(251) $(68) $(183)                        Adjusted Diluted Loss Per Share:                      Diluted loss per share, as reported $(0.89) $(0.48) $(0.39) $(0.04) $(0.36) $(0.10) $(0.26) Gain on retirement of debt  (0.01)  —   (0.01)  (0.01)  —   —   —  Discrete tax items  (0.03)  (0.01)  (0.02)  (0.01)  (0.01)  —   (0.02) Diluted loss per share, as adjusted $(0.93) $(0.49) $(0.42) $(0.06) $(0.37) $(0.10) $(0.28) 

TRANSOCEAN LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED CONTRACT DRILLING REVENUES EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS (in millions, except percentages)                                                 YTD QTD YTD QTD YTD QTD YTD   12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23                        Contract drilling revenues $2,832  $741  $2,091  $713  $1,378  $729  $649  Contract intangible asset amortization  52   7   45   8   37   19   18  Adjusted Contract Drilling Revenues $2,884  $748  $2,136  $721  $1,415  $748  $667                         Net loss $(954) $(104) $(850) $(220) $(630) $(165) $(465) Interest expense, net of interest income  594   (13)  607   220   387   157   230  Income tax expense (benefit)  13   21   (8)  (43)  35   (16)  51  Depreciation and amortization  744   184   560   192   368   186   182  Contract intangible asset amortization  52   7   45   8   37   19   18  EBITDA  449   95   354   157   197   181   16                         Loss on impairment of assets  57   (1)  58   5   53   53   —  Loss on disposal of assets, net  169   —   169   —   169   —   169  Loss on impairment of investment in unconsolidated affiliate  5   5   —   —   —   —   —  Loss on debt conversion  27   24   3   —   3   3   —  (Gain) loss on retirement of debt  31   (1)  32   —   32   —   32  Adjusted EBITDA $738  $122  $616  $162  $454  $237  $217                                                Loss margin  (33.7)% (14.0)% (40.7)% (30.9)% (45.7)% (22.6)% (71.6)%EBITDA margin  15.6 % 12.7 % 16.6 % 21.8 % 13.9 % 24.2 % 2.4 %Adjusted EBITDA margin  25.6 % 16.3 % 28.9 % 22.5 % 32.1 % 31.7 % 32.5 %

                         YTD QTD YTD QTD YTD QTD YTD   12/31/22 12/31/22 09/30/22 09/30/22 06/30/22 06/30/22 03/31/22                        Contract drilling revenues $2,575  $606  $1,969  $691  $1,278  $692  $586  Contract intangible asset amortization  117   19   98   39   59   30   29  Adjusted Contract Drilling Revenues $2,692  $625  $2,067  $730  $1,337  $722  $615                         Net loss $(621) $(350) $(271) $(28) $(243) $(68) $(175) Interest expense, net of interest income  534   251   283   87   196   96   100  Income tax expense (benefit)  59   35   24   (5)  29   3   26  Depreciation and amortization  735   186   549   182   367   184   183  Contract intangible asset amortization  117   19   98   39   59   30   29  EBITDA  824   141   683   275   408   245   163                         Gain on retirement of debt  (8)  (1)  (7)  (7)  —   —   —  Adjusted EBITDA $816  $140  $676  $268  $408  $245  $163                                                Loss margin  (24.1)% (57.8)% (13.8)% (4.1)% (19.0)% (9.8)% (29.9)%EBITDA margin  30.6 % 22.7 % 33.0 % 37.6 % 30.5 % 33.9 % 26.5 %Adjusted EBITDA margin  30.3 % 22.4 % 32.7 % 36.7 % 30.5 % 33.9 % 26.5 %                                              

TRANSOCEAN LTD. AND SUBSIDIARIES SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS (in millions, except tax rates)                                     Three months ended  Years ended    December 31,     September 30,    December 31,  December 31,  December 31,    2023
    2023
    2022
 2023
 2022
                  Loss before income taxes $(83) $(263) $(315) $(941) $(562) Loss on impairment of assets  (1)  5   —   57   —  Loss on disposal of assets, net  —   —   —   169   —  Loss on impairment of investment in unconsolidated affiliate  5   —   —   5   —  Loss on debt conversion  24   —   —   27   —  (Gain) loss on retirement of debt  (1)  —   (1)  31   (8) Adjusted loss before income taxes $(56) $(258) $(316) $(652) $(570)                                   Income tax expense (benefit) $21  $(43) $35  $13  $59  Loss on impairment of assets  —   —   —   —   —  Loss on disposal of assets, net  —   —   —   —   —  Loss on impairment of investment in unconsolidated affiliate  —   —   —   —   —  Loss on debt conversion  —   —   —   —   —  (Gain) loss on retirement of debt  —   —   —   —   —  Changes in estimates (1)  (3)  65   5   74   19  Adjusted income tax expense (benefit) (2) $18  $22  $40  $87  $78                   Effective Tax Rate (3)   (25.0)%  16.3 %  (11.0)  (1.4)%  (10.4)%                 Effective Tax Rate, excluding discrete items (4)   (30.0)%  (8.7)%  (12.6)%  (13.3)%  (13.6)%                                  (1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws and other events that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.                  (2) The three months ended December 31, 2023 included $10 million of additional tax expense, reflecting the cumulative effect of a decrease in the annual effective tax rate from the previous quarter estimate.                  (3) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.                  (4) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate. 

Share

[DISPLAY_ULTIMATE_SOCIAL_ICONS]

Featured Articles

Upcoming Events

April 2024
No event found!
Load More