<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
---------------------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED].
For the transition period from _____________ to ____________
Commission file number 1-13926
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below: DIAMOND OFFSHORE DEFINED
CONTRIBUTION RETIREMENT PLAN
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
DIAMOND OFFSHORE DRILLING, INC.
15415 KATY FREEWAY
HOUSTON, TEXAS 77094
<PAGE> 2
REQUIRED INFORMATION
Item 4.
The financial statements and schedules of the Diamond Offshore
Defined Contribution Retirement Plan for the fiscal year ended December 31,
1997 (attached).
Exhibits
23.1 Consent of Deloitte & Touche LLP
<PAGE> 3
AUDITED FINANCIAL STATEMENTS AND SCHEDULES
DIAMOND OFFSHORE DEFINED CONTRIBUTION RETIREMENT PLAN
Years ended December 31, 1997 and 1996 and
Supplemental Schedules for Year ended December 31, 1997
with Report of Independent Auditors
<PAGE> 4
DIAMOND OFFSHORE DEFINED CONTRIBUTION RETIREMENT PLAN
Audited Financial Statements and Schedules
Years ended December 31, 1997 and 1996
CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Financial Statements
Statements of Net Assets Available for Plan Benefits, December 31, 1997 and 1996 . . . . . . . . . . . . . . . . . . . 2
Statements of Changes in Net Assets Available for Plan Benefits for the Years ended
December 31, 1997, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
ERISA Supplemental Schedules
Item 27a--Schedule of Assets Held for Investment Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 27d--Schedule of Reportable Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
<PAGE> 5
INDEPENDENT AUDITORS' REPORT
TO THE PARTICIPANTS AND ADMINISTRATIVE COMMITTEE
OF THE DIAMOND OFFSHORE DEFINED CONTRIBUTION
RETIREMENT PLAN
HOUSTON, TEXAS
We have audited the accompanying statements of net assets available for benefits
of the Diamond Offshore Defined Contribution Retirement Plan (the "Plan") as of
December 31, 1997 and 1996, and the related statements of changes in net assets
available for benefits for each of the three years in the period ended December
31, 1997. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1997 and 1996, and the changes in net assets available for benefits for each of
the three years in the period ended December 31, 1997 in conformity with
generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1997 and (2) reportable
transactions for the year ended December 31, 1997 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employment
Retirement Income Security Act of 1974. These schedules are the responsibility
of the Plan's management. Such schedules have been subjected to the auditing
procedures applied in our audit of the basic 1997 financial statements and, in
our opinion, are fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
May 29, 1998
<PAGE> 6
DIAMOND OFFSHORE DEFINED CONTRIBUTION
RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1997 1996
------------- -------------
<S> <C> <C>
INVESTMENTS AT FAIR VALUE:
Mutual funds .............................. $ 47,380,647 $ 14,989,894
Company stock ............................. 1,713,155 --
Short-term investments .................... -- 12,408,858
------------- -------------
Total investments ................... 49,093,802 27,398,752
CONTRIBUTIONS RECEIVABLE:
Employee .................................. 589,847 333,432
Employer .................................. 1,267,153 639,513
------------- -------------
Total contributions receivable ...... 1,857,000 972,945
LOANS TO PARTICIPANTS ................................. 2,022,640 --
OTHER ASSETS .......................................... 6,302 --
------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS ..................... $ 52,979,744 $ 28,371,697
============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<PAGE> 7
DIAMOND OFFSHORE CONTRIBUTION
RETIREMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
1997 1996 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest ............................. $ 2,938,430 $ 1,944,678 $ 1,031,711
Net appreciation in fair value of investments ...... 3,659,059 736,638 1,368,590
--------------- --------------- ---------------
Total investment income ....................... 6,597,489 2,681,316 2,400,301
CONTRIBUTIONS:
Employee ......................................... 4,680,340 3,733,432 3,288,331
Employer ......................................... 6,477,438 2,524,009 2,330,783
Rollover ......................................... 11,231,765 -- --
--------------- --------------- ---------------
Total contributions ........................... 22,389,543 6,257,441 5,619,114
--------------- --------------- ---------------
Total additions ............................... 28,987,032 8,938,757 8,019,415
--------------- --------------- ---------------
DEDUCTIONS:
Benefit payments ................................. (4,362,444) (2,018,926) (1,266,340)
Miscellaneous expenditures ....................... (16,541) -- --
--------------- --------------- ---------------
Total deductions .............................. (4,378,985) (2,018,926) (1,266,340)
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS AVAILABLE
FOR BENEFITS ....................................... 24,608,047 6,919,831 6,753,075
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period ............................... 28,371,697 21,451,866 14,698,791
--------------- --------------- ---------------
End of period ..................................... $ 52,979,744 $ 28,371,697 $ 21,451,866
=============== =============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 8
DIAMOND OFFSHORE CONTRIBUTION
RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. ORGANIZATION
The Diamond Offshore Defined Contribution Retirement Plan (the "Plan")
was established effective July 1, 1989. Effective January 1, 1997,
Diamond Offshore Drilling, Inc. (the "Company") merged the Arethusa
Off-Shore Company Profit Sharing Plan ("Arethusa Plan") with and into
the Plan. Net assets available for benefits for the Arethusa Plan were
$10,731,913 as of December 31, 1996. In connection with this merger,
the Plan changed trustees from The Dreyfus Trust Company ("Dreyfus") to
The Scudder Trust Company ("Scudder") effective January 1, 1997. The
adoption of the Plan in its entirety is intended to comply with the
provisions of Sections 401(a), 401(k) and 401(m) of the Internal
Revenue Code (the "IRC") and applicable regulations thereunder. The
Plan is intended to qualify as a profit-sharing plan in accordance with
the requirement of Section 401(a)(27) of the IRC.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTING BASIS - The financial statements of the Plan are prepared
using the accrual basis of accounting.
INVESTMENTS - Investments are reported in the financial statements at
fair value with the exception of the Capital Preservation Fund which
represents investments in guaranteed investment contracts and is
reported at contract value. Fair value of collective investment funds
are based on quoted prices in an active market as determined by
Dreyfus. During 1996, the Plan adopted the provisions of Statement of
Position 94-4, "Reporting of Investment Contracts Held by Health and
Welfare Plans and Defined Contribution Pension Plans" ("SOP 94-4").
According to the provisions of SOP 94-4, the contracts for this Plan
have been deemed to be benefit-responsive. As such, the contracts are
presented at contract value in the statement of net assets available
for benefits at December 31, 1996. The average yield of Capital
Preservation Fund in 1996 was 5.64%, and the weighted average crediting
interest rate of the contracts was 5.88% at December 31, 1996.
TRUSTEE FEES - Normal recurring trustee fees are paid by the Company,
the Plan's sponsor. Fees paid by the Company were $10,112 and $38,216
for the years ended December 31, 1997 and 1996, respectively.
USE OF ESTIMATES - The preparation of financial statements in
conformity with generally accepted accounting principles requires Plan
management to make estimates and assumptions that affect the reported
amounts of net assets available for benefits and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of the Plan income and expenses
during the reporting period. Actual results could differ from these
estimates.
3. DESCRIPTION OF PLAN
The following description of the Plan provides only general
information. Participants should refer to the Plan agreement for a
complete description of the Plan's provisions.
GENERAL - The Plan is a defined contribution retirement plan for
U.S.-paid employees of the Company and its subsidiaries. The Plan is
subject to the provisions of the Employee Retirement Income Security
Act of 1974 ("ERISA") and the IRC.
ADMINISTRATION - The Plan is administered by an administrative
committee appointed by the President of the Company.
4
<PAGE> 9
PARTICIPANTS - Prior to July 1, 1997, any employee of the Company
became a participant of the Plan on the first quarterly entry date
(January 1, April 1, July 1 or October 1) following the completion of
one year of service. Effective July 1, 1997 an employee of the Company
will become a participant of the Plan beginning in the month following
the completion of a 90-day service period.
CONTRIBUTIONS - The Company makes a profit sharing contribution equal
to 3.75% of the employee's qualified yearly earnings and a matching
contribution equal to 25% for every percent the employee contributes up
to a maximum of 6%. In 1997 and 1996, Company contributions were made
quarterly. In addition, each participant may make voluntary
contributions of up to 15% of his or her annual compensation, as
defined by the Plan. Employee contributions are made through payroll
deductions.
INVESTMENT FUNDS - Effective January 1, 1997, the following investment
options are available to plan participants:
Scudder Stable Value Fund: This collective investment trust
invests in high-quality instruments, including guaranteed
investment contracts, bank investment contracts, money market
instruments and synthetic contracts.
Scudder Income Fund: This fund invests primarily in high-grade
corporate bonds, convertible bonds and government securities.
Scudder Balanced Fund: This fund invests in common stocks of
companies that the Fund's advisor believes offer the
potential for above-average growth of earnings, cash flow or
assets relative to the overall market.
Scudder Growth & Income Fund: This fund's primary investments are
income-producing common and preferred stocks of established
companies.
Scudder Stock Index Fund: This collective investment trust invests
in common stocks of companies listed in the S&P 500. The
trust may invest in all 500 stocks or in other mutual funds
that approximately mirror the S&P 500 in their weightings.
MFS Research Fund A: This fund invests in common stocks or
securities convertible into common stocks of companies
believed to possess better-than-average prospects for
long-term growth.
Templeton Foreign Fund I: This fund generally invests in common
stock, although it may also invest in preferred stocks and
certain debt securities, rated or unrated.
Putnam New Opportunities Fund A: This fund invests primarily in
common stocks in the following sectors: personal
communications, environmental services, media/entertainment,
medical technology/medical cost containment, applied advanced
technology, value-oriented consuming and personal finance.
Diamond Offshore Drilling, Inc. Common Stock - This fund invests
in the common stock of the Company and reinvests dividends of
the Company's stock, if any, into additional shares of the
Company.
PARTICIPANT ACCOUNTS - Each participant's account is credited with the
Company's and the participant's contributions and an allocation of the
Plan's earnings. Allocations are based primarily on account balances at
specified dates as provided under the terms of the Plan.
VESTING - Each participant has at all times a fully vested and
nonforfeitable interest in their contributions and earnings thereon.
Matching contributions made by the Company to participant accounts vest
100% after five years of service.
FORFEITURES - Forfeitures are applied to reduce company contributions
to the Plan.
LOANS - Participants may borrow from his or her account up to the
lessor of (i) one-half of the vested value of their accounts or (ii)
$50,000.
5
<PAGE> 10
PAYMENT OF BENEFITS - Upon separation of service, each participant may
elect to receive the entire account balance in a lump sum payment. As
of December 31, 1997 and 1996, amounts payable to participants who had
terminated or withdrawn from the Plan were $624,336 and $29,039,
respectively.
4. PLAN TERMINATION
Although the Company has not expressed any intent to do so, it has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. Upon
termination of the Plan by the Company, the trustee will distribute to
each participant the amounts credited to his or her account. No amount
will revert to the Company in the event of the Plan's termination.
5. FEDERAL INCOME TAXES
The Plan has obtained a favorable tax determination letter from the
Internal Revenue Service ("IRS") dated February 25, 1997. It is the
opinion of the Plan Administrator that the Plan has met, and continues
to meet, all necessary IRS requirements exempting it from federal
income taxes; therefore, no provision for income taxes has been made.
6
<PAGE> 11
6. STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS - BY FUND
<TABLE>
<CAPTION>
SCUDDER SCUDDER
SCUDDER SCUDDER SCUDDER GROWTH & STOCK MFS TEMPLETON
STABLE VALUE INCOME BALANCED INCOME INDEX RESEARCH FOREIGN
DECEMBER 31, 1997 FUND FUND FUND FUND FUND FUND A FUND I
------------ ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
Mutual funds $15,152,285 $ 1,089,500 $ 161,987 $10,859,687 $ 412,600 $ 8,072,838 $ 2,560,440
Company stock
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 15,152,285 1,089,500 161,987 10,859,687 412,600 8,072,838 2,560,440
----------- ----------- ----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
RECEIVABLE:
Employee 146,690 11,204 6,435 131,304 15,397 95,662 34,487
Employer 498,888 20,563 10,312 225,929 23,820 167,618 59,752
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions
receivable 645,578 31,767 16,747 357,233 39,217 263,280 94,239
----------- ----------- ----------- ----------- ----------- ----------- -----------
OTHER ASSETS
LOANS TO PARTICIPANTS
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $15,797,863 $ 1,121,267 $ 178,734 $11,216,920 $ 451,817 $ 8,336,118 $ 2,654,679
=========== =========== =========== =========== =========== =========== ===========
<CAPTION>
DIAMOND
PUTNAM OFFSHORE
NEW DRILLING, INC.
OPPORTUNITIES COMMON CASH LOAN TRANSACTIONS
DECEMBER 31, 1997 FUND A STOCK FUND FUND PENDING TOTAL
------------- -------------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
Mutual funds $ 9,071,310 $47,380,647
Company stock $ 1,713,155 1,713,155
----------- ----------- ----------- ----------- ----------- -----------
Total investments 9,071,310 1,713,155 49,093,802
----------- ----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
RECEIVABLE:
Employee 124,243 $ 24,425 589,847
Employer 224,480 35,791 1,267,153
----------- ----------- ----------- ----------- ----------- -----------
Total contributions
receivable 348,723 60,216 1,857,000
----------- ----------- ----------- ----------- ----------- -----------
OTHER ASSETS $ 1,981 4,321 6,302
LOANS TO PARTICIPANTS $ 2,022,640 2,022,640
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $ 9,420,033 $ 1,713,155 $ 1,981 $ 2,022,640 $ 64,537 $52,979,744
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS DREYFUS PREMIER
CAPITAL GENERAL GROWTH AND DREYFUS DREYFUS GLOBAL
PRESERVATION MONEY INCOME NEW APPRECIATION INVESTING
DECEMBER 31, 1996 FUND MARKET FUND LEADERS FUND FUND TOTAL
------------ ----------- ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
Short-term investments $ 9,931,919 $ 2,476,939 $12,408,858
Mutual funds $ 4,829,817 $ 4,034,118 $ 3,896,328 $ 2,229,631 14,989,894
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 9,931,919 2,476,939 4,829,817 4,034,118 3,896,328 2,229,631 27,398,752
----------- ----------- ----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
RECEIVABLE:
Employee 94,361 33,676 64,686 64,019 52,349 24,341 333,432
Employer 180,982 64,591 124,066 122,786 100,404 46,684 639,513
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions
receivable 275,343 98,267 188,752 186,805 152,753 71,025 972,945
----------- ----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR BENEFITS $10,207,262 $ 2,575,206 $ 5,018,569 $ 4,220,923 $ 4,049,081 $ 2,300,656 $28,371,697
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
7
<PAGE> 12
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - BY FUND
<TABLE>
<CAPTION>
SCUDDER SCUDDER SCUDDER
STABLE SCUDDER SCUDDER GROWTH & STOCK MFS
FOR THE YEAR ENDED VALUE INCOME BALANCED INCOME INDEX RESEARCH
DECEMBER 31, 1997 FUND FUND FUND FUND FUND FUND A
------------ ------------ ------------ ------------ ------------ ------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C> <C>
Dividends and interest $ 934,551 $ 62,559 $ 8,732 $ 1,052,153 $ 1,446 $ 366,326
Net appreciation (depreciation) in
fair value of investments 25,240 7,257 1,326,941 39,651 934,599
------------ ------------ ------------ ------------ ------------ ------------
Total investment income 934,551 87,799 15,989 2,379,094 41,097 1,300,925
------------ ------------ ------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employee 1,253,982 111,050 32,638 1,032,458 85,895 776,853
Employer 2,617,625 101,076 29,898 1,090,014 72,358 988,269
Rollover 2,157,282 1,045,372 2,456,201 2,383,960
------------ ------------ ------------ ------------ ------------ ------------
Total contributions 6,028,889 1,257,498 62,536 4,578,673 158,253 4,149,082
------------ ------------ ------------ ------------ ------------ ------------
Total additions 6,963,440 1,345,297 78,525 6,957,767 199,350 5,450,007
------------ ------------ ------------ ------------ ------------ ------------
DEDUCTIONS:
Benefit payments (1,781,636) (249,828) (745) (777,078) (10,828) (559,679)
Miscellaneous expenditures
------------ ------------ ------------ ------------ ------------ ------------
Total deductions (1,781,636) (249,828) (745) (777,078) (10,828) (559,679)
INTERFUND TRANSFERS 10,616,059 25,798 100,954 5,036,231 263,295 3,445,790
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS 15,797,863 1,121,267 178,734 11,216,920 451,817 8,336,118
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of period
------------ ------------ ------------ ------------ ------------ ------------
End of period $ 15,797,863 $ 1,121,267 $ 178,734 $ 11,216,920 $ 451,817 $ 8,336,118
============ ============ ============ ============ ============ ============
<CAPTION>
PUTNAM DIAMOND
FOR THE YEAR ENDED TEMPLETON NEW ZAPATA OFFSHORE
DECEMBER 31, 1997 FOREIGN OPPORTUNITIES COMMON DRILLING, INC.
FUND I FUND A STOCK COMMON STOCK
----------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest $ 282,992 $ 224,197 $ 3,542
Net appreciation (depreciation) in
fair value of investments (119,636) 1,315,837 $ (212,580) 341,750
----------- ----------- ----------- -----------
Total investment income 163,356 1,540,034 (212,580) 345,292
----------- ----------- ----------- -----------
CONTRIBUTIONS:
Employee 278,040 1,011,275
Employer 323,704 1,108,551 213
Rollover 2,383,960 283,584 104,509
----------- ----------- ----------- -----------
Total contributions 601,744 4,503,786 283,584 104,722
----------- ----------- ----------- -----------
Total additions 765,100 6,043,820 71,004 450,014
----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (198,120) (586,872) (8,655) (188,697)
Miscellaneous expenditures (58)
----------- ----------- ----------- -----------
Total deductions (198,120) (586,872) (8,655) (188,755)
INTERFUND TRANSFERS 2,087,699 3,963,085 (62,349) 1,451,896
----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS 2,654,679 9,420,033 1,713,155
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of period
----------- ----------- ----------- -----------
End of period $ 2,654,679 $ 9,420,033 $ $ 1,713,155
=========== =========== =========== ===========
<CAPTION>
FOR THE YEAR ENDED CAPITAL
DECEMBER 31, 1997 CASH LOAN TRANSACTION PRESERVATION
FUND FUND PENDING FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest $ 209 $ 1,723
Net appreciation (depreciation) in
fair value of investments
------------ ------------ ------------ ------------
Total investment income 209 1,723
------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employee 98,149
Employer 145,730
Rollover $ 416,897
------------ ------------ ------------ ------------
Total contributions 416,897 243,879
------------ ------------ ------------ ------------
Total additions 209 416,897 245,602
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefit payments (306)
Miscellaneous expenditures (16,483)
------------ ------------ ------------ ------------
Total deductions (16,483) (306)
INTERFUND TRANSFERS 1,772 1,622,226 (180,759) $(10,207,262)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS 1,981 2,022,640 64,537 (10,207,262)
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of period 10,207,262
------------ ------------ ------------ ------------
End of period $ 1,981 $ 2,022,640 $ 64,537 $
============ ============ ============ ============
</TABLE>
(CONTINUED)
8
<PAGE> 13
<TABLE>
<CAPTION>
Dreyfus Dreyfus Premier
General Growth Dreyfus Dreyfus Global
For the Year Ended Money and Income New Appreciation Investing
December 31, 1997 Market Fund Leaders Fund Fund Total
(Continued)
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest $ 2,938,430
Net appreciation (depreciation) in
fair value of investments 3,659,059
----------- ----------- ----------- ----------- ----------- -----------
Total investment income 6,597,489
----------- ----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS:
Employee 4,680,340
Employer 6,477,438
Rollover 11,231,765
----------- ----------- ----------- ----------- ----------- -----------
Total contributions 22,389,543
----------- ----------- ----------- ----------- ----------- -----------
Total additions 28,987,032
----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Benefit payments (4,362,444)
Miscellaneous expenditures (16,541)
----------- ----------- ----------- ----------- ----------- -----------
Total deductions (4,378,985)
INTERFUND TRANSFERS $(2,575,206) $(5,018,569) $(4,220,923) $(4,049,081) $(2,300,656)
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS (2,575,206) (5,018,569) (4,220,923) (4,049,081) (2,300,656) 24,608,047
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of period 2,575,206 5,018,569 4,220,923 4,049,081 2,300,656 28,371,697
----------- ----------- ----------- ----------- ----------- -----------
End of period $ $ $ $ $ $52,979,744
=========== =========== =========== =========== =========== ===========
</TABLE>
9
<PAGE> 14
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - BY FUND
(Continued)
<TABLE>
<CAPTION>
Dreyfus Dreyfus
Capital General Growth Dreyfus
Preservation Money and Income New
For the Year Ended December 31, 1996 Fund Market Fund Leaders
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest $ 531,875 $ 98,530 $ 689,207 $ 281,723
Net appreciation (depreciation) in fair value of investments -- -- (77,148) 215,237
------------ ------------ ------------ ------------
Total investment income 531,875 98,530 612,059 496,960
------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employee 1,160,241 387,889 741,433 629,436
Employer 1,074,004 233,253 408,395 343,692
------------ ------------ ------------ ------------
Total contributions 2,234,245 621,142 1,149,828 973,128
------------ ------------ ------------ ------------
Total additions 2,766,120 719,672 1,761,887 1,470,088
------------ ------------ ------------ ------------
BENEFIT PAYMENTS (936,234) (176,449) (314,812) (165,752)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS (555,151) 201,765 (408,983) 571,025
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 1,274,735 744,988 1,038,092 1,875,361
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period 8,932,527 1,830,218 3,980,477 2,345,562
------------ ------------ ------------ ------------
End of period $ 10,207,262 $ 2,575,206 $ 5,018,569 $ 4,220,923
============ ============ ============ ============
<CAPTION>
Premier
Dreyfus Global
Appreciation Investing
For the Year Ended December 31, 1996 Fund Fund Total
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interest $ 37,717 $ 305,626 $ 1,944,678
Net appreciation in fair value of investments 663,996 (65,447) 736,638
------------ ------------ ------------
Total investment income 701,713 240,179 2,681,316
------------ ------------ ------------
CONTRIBUTIONS:
Employee 495,960 318,473 3,733,432
Employer 286,054 178,611 2,524,009
------------ ------------ ------------
Total contributions 782,014 497,084 6,257,441
------------ ------------ ------------
Total additions 1,483,727 737,263 8,938,757
------------ ------------ ------------
BENEFIT PAYMENTS (275,742) (149,937) (2,018,926)
------------ ------------ ------------
INTERFUND TRANSFERS 454,913 (263,569) --
------------ ------------ ------------
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 1,662,898 323,757 6,919,831
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period 2,386,183 1,976,899 21,451,866
------------ ------------ ------------
End of period $ 4,049,081 $ 2,300,656 $ 28,371,697
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Dreyfus
Capital General Growth Dreyfus
Preservation Money and Income New
For the Year Ended December 31, 1995 Fund Market Fund Leaders
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interests $ 433,214 $ 78,520 $ 182,551 $ 174,298
Net appreciation in fair value of investments -- -- 505,029 275,355
------------ ------------ ------------ ------------
Total investment income 433,214 78,520 687,580 449,653
------------ ------------ ------------ ------------
CONTRIBUTIONS:
Employee 1,122,615 386,378 671,613 422,673
Employer 1,166,530 226,672 351,865 220,925
------------ ------------ ------------ ------------
Total contributions 2,289,145 613,050 1,023,478 643,598
------------ ------------ ------------ ------------
Total additions 2,722,359 691,570 1,711,058 1,093,251
------------ ------------ ------------ ------------
BENEFIT PAYMENTS (605,367) (143,142) (164,271) (103,799)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS 31,823 58,461 (76,054) 52,515
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 2,148,815 606,889 1,470,733 1,041,967
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period 6,783,712 1,223,329 2,509,744 1,303,595
------------ ------------ ------------ ------------
End of period $ 8,932,527 $ 1,830,218 $ 3,980,477 $ 2,345,562
============ ============ ============ ============
<CAPTION>
Premier
Dreyfus Global
Appreciation Investing
For the Year Ended December 31, 1995 Fund Fund Total
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends and interests $ 39,424 $ 123,704 $ 1,031,711
Net appreciation in fair value of investments 510,383 77,823 1,368,590
------------ ------------ ------------
Total investment income 549,807 201,527 2,400,301
------------ ------------ ------------
CONTRIBUTIONS:
Employee 346,076 338,976 3,288,331
Employer 193,155 171,636 2,330,783
------------ ------------ ------------
Total contributions 539,231 510,612 5,619,114
------------ ------------ ------------
Total additions 1,089,038 712,139 8,019,415
------------ ------------ ------------
BENEFIT PAYMENTS (112,468) (137,293) (1,266,340)
------------ ------------ ------------
INTERFUND TRANSFERS 158,090 (224,835) --
------------ ------------ ------------
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 1,134,660 350,011 6,753,075
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period 1,251,523 1,626,888 14,698,791
------------ ------------ ------------
End of period $ 2,386,183 $ 1,976,899 $ 21,451,866
============ ============ ============
</TABLE>
******
10
<PAGE> 15
DIAMOND OFFSHORE CONTRIBUTION
RETIREMENT PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES
December 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
NUMBER OF
UNITS OR CURRENT
IDENTITY OF ISSUE DESCRIPTION SHARES COST VALUE
<S> <C> <C> <C> <C>
Scudder Stable Value Fund Mutual Fund 15,152,284.770 $ 15,152,285 $ 15,152,285
Scudder Income Fund Mutual Fund 80,883.472 1,067,313 1,089,500
Scudder Balanced Fund Mutual Fund 9,613.499 158,404 161,987
Scudder Growth and Income Fund Mutual Fund 397,354.095 9,741,977 10,859,687
Scudder Stock Index Fund Mutual Fund 15,622.864 379,604 412,600
MFS Research Fund A Mutual Fund 379,184.517 7,317,108 8,072,838
Templeton Foreign Fund I Mutual Fund 257,330.640 2,718,825 2,560,440
Putnam New Opportunities Fund A Mutual Fund 186,460.633 7,873,096 9,071,310
Diamond Offshore Drilling, Inc. Common Stock 35,594.666 1,514,924 1,713,155
Participant Loans Loans to participants 2,022,640 2,022,640
with varying terms
------------ ------------
TOTAL $ 47,946,176 $ 51,116,442
============ ============
</TABLE>
11
<PAGE> 16
DIAMOND OFFSHORE CONTRIBUTION
RETIREMENT PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
CURRENT
VALUE OF
ASSET ON
IDENTITY OF DESCRIPTION OF PURCHASE SELLING COST OF TRANSACTION NET GAIN
PARTY INVOLVED INVESTMENT PRICE PRICE ASSET DATE (LOSS)
<S> <C> <C> <C> <C> <C>
TRANSACTIONS IN EXCESS OF 5%
OF PLAN ASSETS AS OF DECEMBER 31, 1996
SINGLE TRANSACTIONS:
Dreyfus Trust Company Capital Preservation Fund $10,207,262 $ 9,931,919 $10,207,262 $ 275,343
Dreyfus Trust Company Dreyfus General Money 2,575,206 2,476,939 2,575,206 98,267
Market Fund
Dreyfus Trust Company Dreyfus Growth & Income Fund 5,018,569 4,649,287 5,018,569 369,282
Dreyfus Trust Company Dreyfus New Leaders 4,220,923 3,735,818 4,220,923 485,105
Dreyfus Trust Company Appreciation Fund 4,049,081 2,906,577 4,049,081 1,142,504
Dreyfus Trust Company Premier Global Investing Fund 2,300,656 2,300,207 2,300,656 449
Scudder Trust Company Scudder Stable Value Fund $14,566,146 14,566,146 14,566,146
Scudder Trust Company Scudder Income Fund 1,045,372 1,045,372 1,045,372
Scudder Trust Company Scudder Growth & Income Fund 7,286,018 7,286,018 7,286,018
Scudder Trust Company MFS Research Fund A 6,280,251 6,280,251 6,280,251
Scudder Trust Company Templeton Foreign Fund I 2,229,631 2,229,631 2,229,631
Scudder Trust Company Putnam New Opportunities 6,418,078 6,418,078 6,418,078
Fund A
Scudder Trust Company Zapata Common Stock 283,584 283,584 283,584
Scudder Trust Company Diamond Offshore Drilling, Inc. 104,509 104,509 104,509
Common Stock
SERIES TRANSACTIONS:
Scudder Trust Company Scudder Stable Value Fund
Purchases 34,958,311 34,958,311 34,958,311
Sales 19,800,087 19,800,087 19,800,087
Scudder Trust Company Scudder Income Fund
Purchases 1,666,351 1,666,351 1,666,351
Sales 601,504 598,453 601,504 3,051
Scudder Trust Company Scudder Growth & Income Fund
Purchases 11,404,844 11,404,844 11,404,844
Sales 1,868,297 1,659,066 1,868,297 209,231
Scudder Trust Company MFS Research Fund A
Purchases 9,140,764 9,140,764 9,140,764
Sales 2,002,335 1,823,466 2,002,335 178,869
Scudder Trust Company Templeton Foreign Fund I
Purchases 3,442,134 3,442,134 3,442,134
Sales 761,536 722,787 761,536 38,749
Scudder Trust Company Putnam New Opportunities
Fund A
Purchases 9,542,500 9,542,500 9,542,500
Sales 1,785,813 1,668,190 1,785,813 117,623
Scudder Trust Company Diamond Offshore Drilling, Inc.
Common Stock
Purchases 1,881,048 1,881,048 1,881,048
Sales 509,588 366,069 509,588 143,519
</TABLE>
12
<PAGE> 17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Plan Administrator of the Diamond Offshore Defined
Contribution Retirement Plan (the "Plan"), which administers the Plan, has duly
caused this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized, on the 25th day of June, 1998.
By: /s/ Robert L. Charles
Name: Robert L. Charles
Title: Administrative Committee Member
<PAGE> 18
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
23.1 Consent of Independent Auditors
</TABLE>
<PAGE> 1
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
333-22745 of Diamond Offshore Drilling, Inc. in Form S-8 of our report dated May
29, 1998, appearing in this Annual Report on Form 11-K of Diamond Offshore
Defined Contribution Retirement Plan for the year ended December 31, 1997.
/s/ DELOITTE & TOUCHE LLP
Houston, Texas
June 25, 1998
