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Wiki	Wiki Summary
Balance sheet	In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Operation Mincemeat	Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Offshore drilling	Offshore drilling is a mechanical process where a wellbore is drilled below the seabed. It is typically carried out in order to explore for and subsequently extract petroleum that lies in rock formations beneath the seabed.
Natural environment	The natural environment or natural world encompasses all living and non-living things occurring naturally, meaning in this case not artificial. The term is most often applied to the Earth or some parts of Earth.
Market environment	Market environment and business environment are marketing terms that refer to factors and forces that affect a firm's ability to build and maintain successful customer relationships. The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the organisation."The three levels of the environment are as follows:\n\nInternal environment – the internal elements of the organisation used to create, communicate and deliver market offerings.
Atmospheric Environment	Atmospheric Environment is a peer-reviewed scientific journal covering research pertaining to air pollution and other ways humans and natural forces affect the Earth's atmosphere. It was established in 1967.
Social environment	The social environment, social context, sociocultural context or milieu refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
Life insurance	Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.
Contract	A contract is a legally enforceable agreement that creates, defines, and governs mutual rights and obligations among its parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date.
Free cash flow	In corporate finance, free cash flow (FCF) or free cash flow to firm (FCFF) is the amount by which a business's operating cash flow exceeds its working capital needs and expenditures on fixed assets (known as capital expenditures). It is that portion of cash flow that can be extracted from a company and distributed to creditors and securities holders without causing issues in its operations.
Net present value	The net present value (NPV) or net present worth (NPW) applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow.
Cash flow forecasting	Cash flow forecasting is the process of obtaining an estimate or forecast of a company's future financial position; the cash flow forecast is typically based on anticipated payments and receivables.\nSee Financial forecast for general discussion re methodology.
GeneRally	A general officer is an officer of high rank in the armies, and in some nations' air forces, space forces, and marines or naval infantry.In some usages the term "general officer" refers to a rank above colonel.The term general is used in two ways: as the generic title for all grades of general officer and as a specific rank. \nIt originates in the 16th century, as a shortening of captain general, which rank was taken from Middle French capitaine général.
Accounting standard	Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders.
Boys Generally Asian	Boys Generally Asian, also known by the acronym BgA, is an American K-pop parody group that was created by YouTube personality Ryan Higa. The group, which describes itself as "guys who can't sing, dance or really speak Korean", debuted in 2016 with the single, "Dong Saya Dae".
Generally Accepted Auditing Standards	Generally Accepted Auditing Standards, or GAAS are sets of standards against which the quality of audits are performed and may be judged. Several organizations have developed such sets of principles, which vary by territory.
Generally Accepted Accounting Principles (United States)	Generally Accepted Accounting Principles (GAAP or U.S. GAAP, pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the latter differ considerably from GAAP and progress has been slow and uncertain.
Magazine	A magazine is a periodical publication, generally published on a regular schedule (often weekly or monthly), containing a variety of content. They are generally financed by advertising, by a purchase price, by prepaid subscriptions, or by a combination of the three.
Financial position of the United States	The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP) as of Q1 2014.\nThe U.S. increased the ratio of public and private debt from 152% GDP in 1980 to peak at 296% GDP in 2008, before falling to 279% GDP by Q2 2011.
Financial accounting	Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. This involves the preparation of financial statements available for public use.
Financial law	Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. Understanding Financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.
Financial services	Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual asset managers, and some government-sponsored enterprises.\n\n\n== History ==\n\nThe term "financial services" became more prevalent in the United States partly as a result of the Gramm–Leach–Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge.Companies usually have two distinct approaches to this new type of business.
Free cash flow to equity	In corporate finance, free cash flow to equity (FCFE) is a metric of how much cash can be distributed to the equity shareholders of the company as dividends or stock buybacks—after all expenses, reinvestments, and debt repayments are taken care of. It is also referred to as the levered free cash flow or the flow to equity (FTE).
Legal liability	In law, liable means "responsible or answerable in law; legally obligated". Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government agencies.
Vicarious liability	Vicarious liability is a form of a strict, secondary liability that arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. It can be distinguished from contributory liability, another form of secondary liability, which is rooted in the tort theory of enterprise liability because, unlike contributory infringement, knowledge is not an element of vicarious liability.
No liability	A no-liability company in Australia (suffix NL) is a company which, under the Corporations Act 2001 (Cth), must have as its stated objects that it is solely a mining company and that it is not entitled to calls on the unpaid issue price of shares. It is a company which is restricted to mining activities and is the only sort of corporation which is entitled to this form of liability, given the sometimes financially risky business of mining.
Regulation	Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.
Regulation A	In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Regulation A (or Reg A) contains rules providing exemptions from the registration requirements, allowing some companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC. Regulation A offerings are intended to make access to capital possible for small and medium-sized companies that could not otherwise bear the costs of a normal SEC registration and to allow nonaccredited investors to participate in the offering.
Regulation of therapeutic goods	The regulation of therapeutic goods, defined as drugs and therapeutic devices, varies by jurisdiction. In some countries, such as the United States, they are regulated at the national level by a single agency.
Queen's Regulations	The Queen's Regulations (first published in 1731 and known as the King's Regulations when the monarch is a king) is a collection of orders and regulations in force in the Royal Navy, British Army, Royal Air Force, and Commonwealth Realm Forces (where the same person as on the British throne is also their separate head of state), forming guidance for officers of these armed services in all matters of discipline and personal conduct. Originally, a single set of regulations were published in one volume.
New York Codes, Rules and Regulations	The New York Codes, Rules and Regulations (NYCRR) contains New York state rules and regulations. The NYCRR is officially compiled by the New York State Department of State's Division of Administrative Rules.

Risk Factors
DIAMOND OFFSHORE DRILLING INC Item 1A Risk Factors
You should carefully consider these risks before investing in our securities
The risks and uncertainties described below are not the only ones facing our company
We are also subject to a variety of risks that affect many other companies generally, as well as additional risks and uncertainties not known to us or that we currently believe are not as significant as the risks described below
If any of the following risks actually occur, our business, financial condition, cash flows and results of operations and the trading prices of our securities may be materially and adversely affected
Our business depends on the level of activity in the oil and gas industry, which is significantly affected by volatile oil and gas prices
Our business depends on the level of activity in offshore oil and gas exploration, development and production in markets worldwide
Oil and gas prices, market expectations of potential changes in these prices and a variety of political and economic factors significantly affect this level of activity
However, higher commodity prices do not necessarily translate into increased drilling activity since our customers’ expectations of future commodity prices typically drive demand for our rigs
Oil and gas prices are extremely volatile and are affected by numerous factors beyond our control, including: • the political environment of oil-producing regions, including uncertainty or instability resulting from an escalation or additional outbreak of armed hostilities in the Middle East or other geographic areas or further acts of terrorism in the United States or elsewhere; • worldwide demand for oil and gas; • the cost of exploring for, producing and delivering oil and gas; • the discovery rate of new oil and gas reserves; • the rate of decline of existing and new oil and gas reserves; • available pipeline and other oil and gas transportation capacity; • the ability of oil and gas companies to raise capital; • weather conditions in the United States and elsewhere; • the ability of the Organization of Petroleum Exporting Countries, commonly called OPEC, to set and maintain production levels and pricing; • the level of production in non-OPEC countries; • the policies of the various governments regarding exploration and development of their oil and gas reserves; and • advances in exploration and development technology
Our industry is highly competitive and cyclical, with intense price competition
The offshore contract drilling industry is highly competitive with numerous industry participants, none of which at the present time has a dominant market share
Some of our competitors may have greater financial or other resources than we do
Drilling contracts are traditionally awarded on a competitive bid basis
Intense price competition is often the primary factor in determining which qualified contractor is awarded a job, although rig availability and location, a drilling contractor’s safety record and the quality and technical capability of service and equipment may also be considered
Mergers among oil and natural gas exploration and production companies have reduced the number of available customers
Our industry has historically been cyclical
There have been periods of high demand, short rig supply and high dayrates (such as we are currently experiencing), followed by periods of lower demand, excess rig supply and low dayrates
Periods of excess rig supply intensify the competition in the industry and often result in rigs being idle for long periods of time
9 _________________________________________________________________ [54]Table of Contents Although oil and natural gas prices are currently significantly above historical averages, resulting in higher utilization and dayrates earned by our drilling units, generally beginning in the third quarter of 2004, we can provide no assurance that the current industry cycle of high demand, short rig supply and higher dayrates will continue
We may be required to idle rigs or to enter into lower rate contracts in response to market conditions in the future
Significant new rig construction and reactivation of cold-stacked drilling units could also intensify price competition
We believe that approximately 15 additional jack-up and semisubmersible rigs are currently being reactivated or scheduled for reactivation, upgrade or conversion for drilling use
Improvements in dayrates and expectations of sustained improvements in rig utilization rates and dayrates may result in the construction of additional new rigs or additional reactivations
These increases in rig supply could result in depressed rig utilization and greater price competition
In addition, competing contractors are able to adjust localized supply and demand imbalances by moving rigs from areas of low utilization and dayrates to areas of greater activity and relatively higher dayrates
Prolonged periods of low utilization and dayrates could also result in the recognition of impairment charges on certain of our drilling rigs if future cash flow estimates, based upon information available to management at the time, indicate that the carrying value of these rigs may not be recoverable
The terms of some of our dayrate drilling contracts may limit our ability to benefit from increasing dayrates in an improving market
The duration of offshore drilling contracts is generally determined by market demand and the respective management strategies of the offshore drilling contractor and its customers
In periods of rising demand for offshore rigs, contractors typically prefer well-to-well contracts that allow them to profit from increasing dayrates
In contrast, during these periods customers with reasonably definite drilling programs typically prefer longer term contracts to maintain dayrate prices at a consistent level
Conversely, in periods of decreasing demand for offshore rigs, contractors generally prefer longer term contracts to preserve dayrates at existing levels and ensure utilization, while customers prefer well-to-well contracts that allow them to obtain the benefit of lower dayrates
To the extent possible, we seek to have a foundation of long-term contracts with a reasonable balance of single-well, well-to-well and short-term contracts to attempt to limit the downside impact of a decline in the market while still participating in the benefit of increasing dayrates in an improving market
However, we can provide no assurance that we will be able to achieve or maintain such a balance from time to time
Our inability to fully benefit from increasing dayrates in an improving market, due to the long-term nature of some of our contracts, may adversely affect our profitability
The majority of our contracts for our drilling units are fixed dayrate contracts, and increases in our operating costs could adversely affect our profitability on those contracts
The majority of our contracts with our customers for our drilling units provide for the payment of a fixed dayrate per rig operating day
However, many of our operating costs, such as labor costs, are unpredictable and fluctuate based on events beyond our control
The gross margin that we realize on these fixed dayrate contracts will fluctuate based on variations in our operating costs over the terms of the contracts
We may be unable to recover increased or unforeseen costs from our customers, which could adversely affect our financial position, results of operations and cash flows
Our drilling contracts may be terminated due to events beyond our control
Our customers may terminate some of our term drilling contracts if the drilling unit is destroyed or lost or if drilling operations are suspended for a specified period of time as a result of a breakdown of major equipment or, in some cases, due to other events beyond the control of either party
In addition, some of our drilling contracts permit the customer to terminate the contract after specified notice periods by tendering contractually specified termination amounts
These termination payments may not fully compensate us for the loss of a contract
In addition, the early termination of a contract may result in a rig being idle for an extended period of time, which could adversely affect our financial position, results of operations and cash flows
10 _________________________________________________________________ [55]Table of Contents During depressed market conditions, our customers may also seek renegotiation of firm drilling contracts to reduce their obligations
The renegotiation of our drilling contracts could adversely affect our financial position, results of operations and cash flows
Rig conversions, upgrades or newbuilds may be subject to delays and cost overruns
From time to time we may undertake to add new capacity through conversions or upgrades to rigs or through new construction
We have entered into agreements to upgrade two of our semisubmersible drilling units to ultra-deepwater capability at an estimated aggregate cost of approximately dlra550 million with expected delivery dates in mid-2007 and the fourth quarter of 2008
We also have entered into agreements to construct two new jack-up drilling units with expected delivery dates in the first quarter of 2008 at an aggregate cost of approximately dlra300 million
These projects and other projects of this type are subject to risks of delay or cost overruns inherent in any large construction project resulting from numerous factors, including the following: • shortages of equipment, materials or skilled labor; • work stoppages; • unscheduled delays in the delivery of ordered materials and equipment; • unanticipated cost increases; • weather interferences; • difficulties in obtaining necessary permits or in meeting permit conditions; • design and engineering problems; • shipyard failures; and • failure or delay of third party service providers and labor disputes
Failure to complete a rig upgrade or new construction on time, or failure to complete a rig conversion or new construction in accordance with its design specifications may, in some circumstances, result in the delay, renegotiation or cancellation of a drilling contract
Our business involves numerous operating hazards, and we are not fully insured against all of them
Our operations are subject to the usual hazards inherent in drilling for oil and gas offshore, such as blowouts, reservoir damage, loss of production, loss of well control, punchthroughs, craterings and natural disasters such as hurricanes or fires
The occurrence of these events could result in the suspension of drilling operations, damage to or destruction of the equipment involved and injury or death to rig personnel, damage to producing or potentially productive oil and gas formations and environmental damage
Operations also may be suspended because of machinery breakdowns, abnormal drilling conditions, failure of subcontractors to perform or supply goods or services or personnel shortages
In addition, offshore drilling operators are subject to perils peculiar to marine operations, including capsizing, grounding, collision and loss or damage from severe weather
Damage to the environment could also result from our operations, particularly through oil spillage or extensive uncontrolled fires
We may also be subject to damage claims by oil and gas companies
Although we maintain insurance, pollution and environmental risks generally are not fully insurable, and we do not typically retain loss-of-hire insurance policies to cover our rigs
Our insurance policies and contractual rights to indemnity may not adequately cover our losses, or may have exclusions of coverage for some losses
We do not have insurance coverage or rights to indemnity for all risks, including, among other things, war risk
If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could adversely affect our financial position, results of operations or cash flows
In addition, there can be no assurance that we will continue to carry the insurance we currently maintain or that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks
As a result of underwriting losses suffered by the insurance industry over the past few years and damages caused by two recent hurricanes in the GOM, we could be faced with the prospect of significantly higher insurance premiums, as well as significantly increasing our deductibles to offset or mitigate premium increases
Our retention of liability for property damage is currently between dlra1dtta0 million and dlra2dtta5 million per incident, depending on the value of the equipment, with an additional aggregate annual deductible of dlra4dtta5 million
No assurance can be made that we will be able to maintain adequate insurance in the future at rates we consider to be reasonable or that we will 11 _________________________________________________________________ [56]Table of Contents be able to obtain insurance against some risks
A significant portion of our operations are conducted outside the United States and involve additional risks not associated with domestic operations
We operate in various regions throughout the world which may expose us to political and other uncertainties, including risks of: • terrorist acts, war and civil disturbances; • expropriation of property or equipment; • foreign and domestic monetary policy; • the inability to repatriate income or capital; • regulatory or financial requirements to comply with foreign bureaucratic actions; and • changing taxation policies
In addition, international contract drilling operations are subject to various laws and regulations in countries in which we operate, including laws and regulations relating to: • the equipping and operation of drilling units; • repatriation of foreign earnings; • oil and gas exploration and development; • taxation of offshore earnings and earnings of expatriate personnel; and • use and compensation of local employees and suppliers by foreign contractors
No prediction can be made as to what governmental regulations may be enacted in the future that could adversely affect the international drilling industry
The actions of foreign governments, including initiatives by OPEC, may adversely affect our ability to compete
Our drilling contracts in the Mexican GOM expose us to greater risks than we normally assume
In 2003, we entered into contracts to operate four of our intermediate semisubmersible rigs offshore Mexico for PEMEX, the national oil company of Mexico
The terms of these contracts expose us to greater risks than we normally assume, such as exposure to greater environmental liability
While we believe that the financial terms of these contracts and our operating safeguards in place mitigate these risks, we can provide no assurance that the increased risk exposure will not have a negative impact on our future operations or financial results
Fluctuations in exchange rates and nonconvertibility of currencies could result in losses to us
Due to our international operations, we may experience currency exchange losses where revenues are received and expenses are paid in nonconvertible currencies or where we do not hedge an exposure to a foreign currency
We may also incur losses as a result of an inability to collect revenues because of a shortage of convertible currency available to the country of operation, controls over currency exchange or controls over the repatriation of income or capital
We are subject to litigation that could have an adverse effect on us
We are, from time to time, involved in various litigation matters
These matters may include, among other things, contract disputes, personal injury claims, environmental claims or proceedings, asbestos and other toxic tort claims, employment and tax matters and other litigation that arises in the ordinary course of our business
Although we intend to defend these matters vigorously, we cannot predict with certainty the outcome or effect of any claim or other litigation matter, and there can be no assurance as to the ultimate outcome of any litigation
Litigation may have an adverse effect on us because of potential adverse outcomes, defense costs, the diversion of our management’s resources and other factors
12 _________________________________________________________________ [57]Table of Contents Failure to obtain and retain highly skilled personnel could hurt our operations
We require highly skilled personnel to operate and provide technical services and support for our business
To the extent that demand for drilling services and the size of the worldwide industry fleet increase, shortages of qualified personnel could arise, creating upward pressure on wages and difficulty in staffing and servicing our rigs, which could adversely affect our results of operations
Governmental laws and regulations may add to our costs or limit our drilling activity
Our operations are affected from time to time in varying degrees by governmental laws and regulations
The drilling industry is dependent on demand for services from the oil and gas exploration industry and, accordingly, is affected by changing tax and other laws relating to the energy business generally
We may be required to make significant capital expenditures to comply with governmental laws and regulations
It is also possible that these laws and regulations may in the future add significantly to our operating costs or may significantly limit drilling activity
Compliance with or breach of environmental laws can be costly and could limit our operations
In the United States, regulations controlling the discharge of materials into the environment, requiring removal and cleanup of materials that may harm the environment or otherwise relating to the protection of the environment apply to some of our operations
For example, we, as an operator of mobile offshore drilling units in navigable United States waters and some offshore areas, may be liable for damages and costs incurred in connection with oil spills related to those operations
Laws and regulations protecting the environment have become more stringent in recent years, and may in some cases impose “strict liability,” rendering a person liable for environmental damage without regard to negligence or fault on the part of that person
These laws and regulations may expose us to liability for the conduct of or conditions caused by others or for acts that were in compliance with all applicable laws at the time they were performed
The United States Oil Pollution Act of 1990, or OPA ’90, and similar legislation enacted in Texas, Louisiana and other coastal states, addresses oil spill prevention and control and significantly expands liability exposure across all segments of the oil and gas industry
OPA ’90 and such similar legislation and related regulations impose a variety of obligations on us related to the prevention of oil spills and liability for damages resulting from such spills
OPA ‘90 imposes strict and, with limited exceptions, joint and several liability upon each responsible party for oil removal costs and a variety of public and private damages
The application of these requirements or the adoption of new requirements could have a material adverse effect on our financial position, results of operations or cash flows
We are controlled by a single stockholder, which could result in potential conflicts of interest
Loews Corporation, which we refer to as Loews, beneficially owns approximately 54dtta3prca of our outstanding shares of common stock and is in a position to control actions that require the consent of stockholders, including the election of directors, amendment of our Restated Certificate of Incorporation and any merger or sale of substantially all of our assets
In addition, three officers of Loews serve on our Board of Directors
One of those, James S Tisch, the Chief Executive Officer and Chairman of the Board of our company, is also the Chief Executive Officer and a director of Loews
We have also entered into a services agreement and a registration rights agreement with Loews and we may in the future enter into other agreements with Loews
Loews and its subsidiaries and we are generally engaged in businesses sufficiently different from each other as to make conflicts as to possible corporate opportunities unlikely
However, it is possible that Loews may in some circumstances be in direct or indirect competition with us, including competition with respect to certain business strategies and transactions that we may propose to undertake
In addition, potential conflicts of interest exist or could arise in the future for our directors that are also officers of Loews with respect to a number of areas relating to the past and ongoing relationships of Loews and us, including tax and insurance matters, financial commitments and sales of common stock pursuant to registration rights or otherwise
Although the affected directors may abstain from voting on matters in which our interests and those of Loews are in conflict so as to avoid potential violations of their fiduciary duties to stockholders, the presence of potential or actual conflicts could affect the process or outcome of Board deliberations
We cannot assure you that these conflicts of interest will not materially adversely affect us