Note 10—Drilling Fleet

Construction work in progress—For each of the three years ended December 31, 2013, the changes in our construction work in progress, including capital expenditures and other capital additions, such as capitalized interest, were as follows (in millions):

	Years ended December 31,
	2013			2012			2011
Construction work in progress, at beginning of period	$	2,010		$	1,391		$	1,459

Newbuild construction program
Deepwater Champion (a) (b)	—			—			76
Transocean Honor (a) (c)	—			35			129
Transocean Siam Driller (a) (d)	74			39			113
Transocean Andaman (a) (d)	82			38			113
Transocean Ao Thai (a) (d)	90			72			80
Deepwater Asgard (e)	309			46			4
Deepwater Invictus (e)	65			40			3
Deepwater Thalassa (f)	154			139			—
Deepwater Proteus (f)	146			128			—
Deepwater Pontus (f)	65			76			—
Deepwater Poseidon (f)	66			76			—
Deepwater Conqueror (g)	108			—			—
High-Specification Jackup TBN1 (h)	44			—			—
High-Specification Jackup TBN2 (h)	44			—			—
High-Specification Jackup TBN3 (h)	44			—			—
High-Specification Jackup TBN4 (h)	44			—			—
High-Specification Jackup TBN5 (h)	44			—			—
Other construction projects and capital additions	859			614			456
Total capital expenditures	2,238			1,303			974
Changes in accrued capital expenditures	44			61			(2		)
Acquisition of construction work in progress (e)	—			—			272
Impairment of certain corporate assets under construction	(17		)	—			—

Property and equipment placed into service
Deepwater Champion (b)	—			—			(881		)
Transocean Honor (c)	—			(262		)	—
Transocean Siam Driller (a) (d)	(236		)	—			—
Transocean Andaman (a) (d)	(242		)	—			—
Transocean Ao Thai (a) (d)	(242		)	—			—
Other property and equipment	(845		)	(483		)	(431		)
Construction work in progress, at end of period	$	2,710		$	2,010		$	1,391

(a) The accumulated construction costs of this rig are no longer included in construction work in progress, as the construction project had been completed as of December 31, 2013.

(b) The Ultra-Deepwater Floater Deepwater Champion commenced operations in May 2011.

(c) The High-Specification Jackup Transocean Honor, owned through our 70 percent interest in TDSOI, commenced operations in May 2012. The costs presented above represent 100 percent of TDSOI’s expenditures in the construction of Transocean Honor.

(d) The High-Specification Jackups Transocean Siam Driller, Transocean Andaman and Transocean Ao Thai commenced operations in March 2013, May 2013 and October 2013, respectively.

(e) Deepwater Asgard and Deepwater Invictus, two newbuild Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the second quarter of 2014. In the year ended December 31, 2011, in connection with our acquisition of Aker Drilling ASA (“Aker Drilling”), we acquired construction work in progress with an aggregate estimated fair value of $272 million.

(f) Deepwater Thalassa, Deepwater Proteus, Deepwater Pontus and Deepwater Poseidon, four newbuild Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the first quarter of 2016, the second quarter of 2016, the first quarter of 2017 and the second quarter of 2017, respectively.

(g) Deepwater Conqueror, a newbuild Ultra-Deepwater drillship under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, is expected to commence operations in the fourth quarter of 2016.

(h) Our five unnamed Keppel FELS Super B 400 Bigfoot class design newbuild High-Specification Jackups under construction do not yet have drilling contracts and are expected to be delivered in the first quarter of 2016, the third quarter of 2016, the fourth quarter of 2016, the first quarter of 2017 and the third quarter of 2017, respectively.

Dispositions—During the year ended December 31, 2013, in connection with our efforts to dispose of non-strategic assets, we committed to plans to sell the Deepwater Floaters Sedco 709 and Transocean Richardson, the Midwater Floaters C. Kirk Rhein, Jr., Falcon 100 and Sedco 703 and the High-Specification Jackup GSF Monitor. During the year ended December 31, 2013, we completed the sale of Transocean Richardson along with related equipment, and as a result of the sale, we received net cash proceeds of $142 million and recognized a net gain of $33 million ($22 million or $0.06 per diluted share, net of tax). In the year ended December 31, 2013, we received cash proceeds of $32 million and recognized an aggregate net loss of $26 million associated with the disposal of assets unrelated to dispositions of rigs. At December 31, 2013, in addition to the remaining assets of our discontinued operations, our assets held for sale included Sedco 709, C. Kirk Rhein, Jr., Falcon 100, Sedco 703 and GSF Monitor, along with related equipment, with an aggregate carrying amount of $129 million. See Note 5—Impairments.

During the year ended December 31, 2012, in connection with our efforts to dispose of non-strategic assets, we completed the sales of the Deepwater Floaters Discoverer 534 and Jim Cunningham. In connection with these sales, we received aggregate net cash proceeds of $178 million and recognized an aggregate net gain of $51 million ($48 million or $0.13 per diluted share, net of tax). In the year ended December 31, 2012, we recognized an aggregate net loss of $15 million associated with the disposal of assets unrelated to dispositions of rigs.

In the year ended December 31, 2011, we recognized an aggregate net loss of $12 million associated with the disposal of assets unrelated to dispositions of rigs.