Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

Schedule II - Valuation and Qualifying Accounts

Schedule II - Valuation and Qualifying Accounts

Transocean Ltd. and Subsidiaries

Schedule II - Valuation and Qualifying Accounts

(In millions)


			Additions
					Charge to
	Balance at		Charge to cost		other						Balance at
	beginning of		and		accounts			Deductions			end of
	period		expenses		-describe			-describe			period

Year ended December 31, 2017
Reserves and allowances deducted from asset accounts:
Allowance for excess and obsolete materials and supplies		153		24		—			36	(a)		141
Valuation allowance on deferred tax assets		412		162		—			—			574

Year ended December 31, 2018
Reserves and allowances deducted from asset accounts:
Allowance for excess and obsolete materials and supplies		141		12		—			19	(a)		134
Valuation allowance on deferred tax assets		574		67		40	(b)		—			681

Year ended December 31, 2019
Reserves and allowances deducted from asset accounts:
Allowance for excess and obsolete materials and supplies		134		3		—			10	(a)		127
Valuation allowance on deferred tax assets		681		37		—			2	(c)		716

(a)	Amount related to materials and supplies on rigs and related assets sold or classified as held for sale.

(b)

Amount primarily related to the following: (i) adjustments of $26 million to the valuation allowance and related deferred tax assets with corresponding adjustments to retained earnings associated with our adoption of the accounting standards update that requires an entity to recognize in the period in which it occurs the income tax consequences of an intra entity transfer of an asset other than inventory and (ii) an adjustment of $14 million to the valuation allowance related to deferred tax assets acquired in business combinations.

(c)	Amount related to adjustments to other deferred tax assets with valuation allowances.