SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)DECEMBER 12, 1996
(DECEMBER 12, 1996)
GLOBAL MARINE INC.
__________________________________________________________________
(Exact name or registrant as specified in charter)
Delaware 1-5471 95-1849298
___________________ ___________ __________________
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.
incorporation)
777 N. Eldridge Road, Houston, Texas 77079
_______________________________________ __________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 596-5100
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ITEM 5. OTHER EVENTS.
As required by Statement of Financial Accounting Standards No. 109
(FAS 109), the company recognizes tax assets on its balance sheet
if it is "more likely than not" that they will be realized on future
tax returns. Although the company has had net operating loss
carryforwards (NOLs) since 1984, the lack of an earnings history
and the lack of significant revenue backlog, among other factors,
led the company to conclude that the realization of the tax
benefits of the NOLs did not pass the "more likely than not" test.
Consequently, the company has not previously recognized these tax
benefits as assets. At December 31, 1996, the company's NOLs will
approximate $1.1 billion, and the resulting tax asset would, if
fully recognized, approximate $375 million.
The company now believes that it is more likely than not that a
material amount of these benefits will be realized in the
foreseeable future. This belief is based on the amount of the
company's earnings and its use of NOLs for 1995 and the first nine
months of 1996, along with the amount of its revenue backlog and
improved fundamentals in the offshore drilling industry.
Accordingly, as required under FAS 109, the company will record a
credit to income taxes in an amount estimated to be between $65
million and $75 million, or $0.38 and $0.44 per share, in the
fourth quarter of 1996. This adjustment will be recorded as a
credit to deferred income taxes, which is a separately reported
component of income tax expense. Although the adjustment will
increase fourth quarter net income by the same amount, it will have
no cash effect.
In future quarters, the company will reevaluate the amount of NOLs
likely to be realized on future tax returns and, in compliance with
FAS 109, make appropriate adjustments to its financial statements.
In addition, the company will charge to deferred income tax expense
the benefits of NOLs actually used in future quarters. The future
impact on net income may therefore be positive or negative,
depending on the net result of such adjustments and charges.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
GLOBAL MARINE INC.
Date: December 12, 1996 By: s/Thomas R. Johnson
Thomas R. Johnson
Vice President
and Corporate Controller
