Property And Equipment

Note 4 - Property and Equipment

Property and equipment as of September 30, 2011 and December 31, 2010 consisted of the following (in millions):


	September 30,	December 31,
	2011	2010

Drilling rigs and equipment	$12,572.2	$5,175.2
Other	89.6	50.4
Work in progress	1,572.2	1,519.0
	$14,234.0	$6,744.6

Drilling rigs and equipment increased $7.4 billion during 2011 primarily due to the Merger. The fair values recorded for Pride's drilling rigs and equipment as of the Merger Date was $5.5 billion, which included five drillships, 12 semisubmersible rigs and seven jackup rigs.

Work in progress increased $53.2 million during 2011 primarily related to the Merger, mostly offset by ENSCO 8503 and ENSCO 8504, which were placed into service during 2011. The fair value recorded for Pride's work in progress as of the Merger Date was $1.3 billion. Work in progress as of September 30, 2011 primarily consisted of $783.1 million related to the construction of our ENSCO 8500 Series® ultra-deepwater semisubmersible rigs, $455.5 million related to the construction of our ENSCO DS-5, ENSCO DS-6 and ENSCO DS-7 ultra-deepwater drillships, which were acquired in connection with the Merger, $91.5 million related to the construction of two ultra-high specification harsh environment jackup rigs and costs associated with various modification and enhancement projects. Work in progress as of December 31, 2010 primarily consisted of $1.4 billion related to the construction of our ENSCO 8500 Series® ultra-deepwater semisubmersible rigs and costs associated with various modification and enhancement projects.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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