☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
incorporation or organization) | Identification No.) | |||||||||||||||||||
98-0635229 | ||||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
110 Cannon Street | ||||||||||||||||||||
London, | England | EC4N 6EU | ||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Ticker Symbol(s) | Name of each exchange on which | |||||||||||
Class A ordinary shares, U.S. $0.40 par value | VAL | New York Stock Exchange | |||||||||||
4.70% Senior Notes due 2021 | VAL21 | New York Stock Exchange | |||||||||||
4.875% Senior Notes due 2022 | VAL/22 | New York Stock Exchange | |||||||||||
4.50% Senior Notes due 2024 | VAL24 | New York Stock Exchange | |||||||||||
4.75% Senior Notes due 2024 | VAL/24 | New York Stock Exchange | |||||||||||
8.00% Senior Notes due 2024 | VAL24A | New York Stock Exchange | |||||||||||
5.20% Senior Notes due 2025 | VAL25A | New York Stock Exchange | |||||||||||
7.375% Senior Notes due 2025 | VAL/25 | New York Stock Exchange | |||||||||||
7.75% Senior Notes due 2026 | VAL26 | New York Stock Exchange | |||||||||||
5.4% Senior Notes due 2042 | VAL/42 | New York Stock Exchange | |||||||||||
5.75% Senior Notes due 2044 | VAL44 | New York Stock Exchange | |||||||||||
5.85% Senior Notes due 2044 | VAL/44 | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||||||||
Non-Accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||||||||
Emerging-growth company | ☐ |
Three Months Ended September 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
OPERATING REVENUES | $ | 551.3 | $ | 430.9 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Contract drilling (exclusive of depreciation) | 496.5 | 327.1 | |||||||||||||||
Loss on impairment | 88.2 | — | |||||||||||||||
Depreciation | 163.0 | 120.6 | |||||||||||||||
General and administrative | 36.1 | 25.1 | |||||||||||||||
Total operating expenses | 783.8 | 472.8 | |||||||||||||||
EQUITY IN EARNINGS OF ARO | (3.7) | — | |||||||||||||||
OPERATING LOSS | (236.2) | (41.9) | |||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||
Interest income | 6.7 | 3.6 | |||||||||||||||
Interest expense, net | (113.9) | (72.2) | |||||||||||||||
Other, net | 147.4 | (9.1) | |||||||||||||||
40.2 | (77.7) | ||||||||||||||||
LOSS BEFORE INCOME TAXES | (196.0) | (119.6) | |||||||||||||||
PROVISION FOR INCOME TAXES | |||||||||||||||||
Current income tax expense (benefit) | 22.6 | (5.7) | |||||||||||||||
Deferred income tax expense (benefit) | (21.1) | 29.0 | |||||||||||||||
1.5 | 23.3 | ||||||||||||||||
NET LOSS | (197.5) | (142.9) | |||||||||||||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | .4 | (2.1) | |||||||||||||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ | (197.1) | $ | (145.0) | |||||||||||||
LOSS PER SHARE - BASIC AND DILUTED | $ | (1.00) | $ | (1.34) | |||||||||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING | |||||||||||||||||
Basic and Diluted | 197.6 | 108.6 |
Three Months Ended June 30, | |||||||
2020 | 2019 | ||||||
OPERATING REVENUES | $ | 388.8 | $ | 583.9 | |||
OPERATING EXPENSES | |||||||
Contract drilling (exclusive of depreciation) | 370.7 | 500.3 | |||||
Loss on impairment | 838.0 | 2.5 | |||||
Depreciation | 131.5 | 157.9 | |||||
General and administrative | 62.6 | 81.2 | |||||
Total operating expenses | 1,402.8 | 741.9 | |||||
EQUITY IN EARNINGS OF ARO | (5.2 | ) | .6 | ||||
OPERATING LOSS | (1,019.2 | ) | (157.4 | ) | |||
OTHER INCOME (EXPENSE) | |||||||
Interest income | 5.7 | 11.9 | |||||
Interest expense, net | (116.2 | ) | (118.3 | ) | |||
Other, net | 5.1 | 703.7 | |||||
(105.4 | ) | 597.3 | |||||
INCOME (LOSS) BEFORE INCOME TAXES | (1,124.6 | ) | 439.9 | ||||
PROVISION (BENEFIT) FOR INCOME TAXES | |||||||
Current income tax expense | 13.8 | 21.2 | |||||
Deferred income tax expense (benefit) | (29.6 | ) | 11.4 | ||||
(15.8 | ) | 32.6 | |||||
NET INCOME (LOSS) | (1,108.8 | ) | 407.3 | ||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1.4 | (1.8 | ) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (1,107.4 | ) | $ | 405.5 | ||
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED | $ | (5.58 | ) | $ | 2.09 | ||
WEIGHTED-AVERAGE SHARES OUTSTANDING | |||||||
Basic and Diluted | 198.6 | 188.6 |
Nine Months Ended September 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
OPERATING REVENUES | $ | 1,541.1 | $ | 1,306.4 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Contract drilling (exclusive of depreciation) | 1,329.4 | 996.6 | |||||||||||||||
Loss on impairment | 90.7 | — | |||||||||||||||
Depreciation | 445.9 | 356.5 | |||||||||||||||
General and administrative | 146.9 | 79.1 | |||||||||||||||
Total operating expenses | 2,012.9 | 1,432.2 | |||||||||||||||
EQUITY IN EARNINGS OF ARO | (3.1) | — | |||||||||||||||
OPERATING LOSS | (474.9) | (125.8) | |||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||
Interest income | 22.1 | 10.5 | |||||||||||||||
Interest expense, net | (313.2) | (213.5) | |||||||||||||||
Other, net | 853.4 | (30.2) | |||||||||||||||
562.3 | (233.2) | ||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 87.4 | (359.0) | |||||||||||||||
PROVISION FOR INCOME TAXES | |||||||||||||||||
Current income tax expense | 69.4 | 21.5 | |||||||||||||||
Deferred income tax expense (benefit) | (3.8) | 44.9 | |||||||||||||||
65.6 | 66.4 | ||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 21.8 | (425.4) | |||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS, NET | — | (8.1) | |||||||||||||||
NET INCOME (LOSS) | 21.8 | (433.5) | |||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (3.8) | (2.6) | |||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 18.0 | $ | (436.1) | |||||||||||||
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED | |||||||||||||||||
Continuing operations | $ | 0.10 | $ | (3.94) | |||||||||||||
Discontinued operations | — | (0.08) | |||||||||||||||
$ | 0.10 | $ | (4.02) | ||||||||||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING | |||||||||||||||||
Basic and Diluted | 165.2 | 108.5 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
OPERATING REVENUES | $ | 845.4 | $ | 989.8 | |||
OPERATING EXPENSES | |||||||
Contract drilling (exclusive of depreciation) | 846.7 | 832.9 | |||||
Loss on impairment | 3,646.2 | 2.5 | |||||
Depreciation | 296.0 | 282.9 | |||||
General and administrative | 116.0 | 110.8 | |||||
Total operating expenses | 4,904.9 | 1,229.1 | |||||
EQUITY IN EARNINGS OF ARO | (11.5 | ) | .6 | ||||
OPERATING LOSS | (4,071.0 | ) | (238.7 | ) | |||
OTHER INCOME (EXPENSE) | |||||||
Interest income | 10.5 | 15.4 | |||||
Interest expense, net | (229.4 | ) | (199.3 | ) | |||
Other, net | 5.6 | 706.0 | |||||
(213.3 | ) | 522.1 | |||||
INCOME (LOSS) BEFORE INCOME TAXES | (4,284.3 | ) | 283.4 | ||||
PROVISION (BENEFIT) FOR INCOME TAXES | |||||||
Current income tax expense (benefit) | (58.7 | ) | 46.8 | ||||
Deferred income tax expense (benefit) | (109.1 | ) | 17.3 | ||||
(167.8 | ) | 64.1 | |||||
NET INCOME (LOSS) | (4,116.5 | ) | 219.3 | ||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 2.8 | (4.2 | ) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (4,113.7 | ) | $ | 215.1 | ||
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED | $ | (20.75 | ) | $ | 1.40 | ||
WEIGHTED-AVERAGE SHARES OUTSTANDING | |||||||
Basic and Diluted | 198.3 | 148.9 |
Three Months Ended September 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
NET LOSS | $ | (197.5) | $ | (142.9) | |||||||||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||
Net change in derivative fair value | (5.7) | (1.9) | |||||||||||||||
Reclassification of net losses on derivative instruments from other comprehensive loss into net loss | 4.9 | .7 | |||||||||||||||
Other | (.2) | (.1) | |||||||||||||||
NET OTHER COMPREHENSIVE LOSS | (1.0) | (1.3) | |||||||||||||||
COMPREHENSIVE LOSS | (198.5) | (144.2) | |||||||||||||||
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | .4 | (2.1) | |||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ | (198.1) | $ | (146.3) |
Nine Months Ended September 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
NET INCOME (LOSS) | $ | 21.8 | $ | (433.5) | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET | |||||||||||||||||
Net change in derivative fair value | (7.3) | (7.6) | |||||||||||||||
Reclassification of net (gains) losses on derivative instruments from other comprehensive income (loss) into net income (loss) | 8.3 | (2.2) | |||||||||||||||
Other | (.3) | (.4) | |||||||||||||||
NET OTHER COMPREHENSIVE INCOME (LOSS) | .7 | (10.2) | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | 22.5 | (443.7) | |||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (3.8) | (2.6) | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 18.7 | $ | (446.3) |
Three Months Ended June 30, | |||||||
2020 | 2019 | ||||||
NET INCOME (LOSS) | $ | (1,108.8 | ) | $ | 407.3 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET | |||||||
Net change in derivative fair value | 4.8 | (1.6 | ) | ||||
Reclassification of net (gains) losses on derivative instruments from other comprehensive income (loss) into net income (loss) | (10.9 | ) | 1.8 | ||||
NET OTHER COMPREHENSIVE INCOME (LOSS) | (6.1 | ) | .2 | ||||
COMPREHENSIVE INCOME (LOSS) | (1,114.9 | ) | 407.5 | ||||
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1.4 | (1.8 | ) | ||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (1,113.5 | ) | $ | 405.7 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 129.5 | $ | 275.1 | ||||||||||||||||
Short-term investments | — | 329.0 | ||||||||||||||||||
Accounts receivable, net | 567.0 | 344.7 | ||||||||||||||||||
Other current assets | 487.5 | 360.9 | ||||||||||||||||||
Total current assets | 1,184.0 | 1,309.7 | ||||||||||||||||||
PROPERTY AND EQUIPMENT, AT COST | 18,392.9 | 15,517.0 | ||||||||||||||||||
Less accumulated depreciation | 3,142.2 | 2,900.8 | ||||||||||||||||||
Property and equipment, net | 15,250.7 | 12,616.2 | ||||||||||||||||||
LONG-TERM NOTES RECEIVABLE FROM ARO | 452.9 | — | ||||||||||||||||||
INVESTMENT IN ARO | 138.2 | — | ||||||||||||||||||
OTHER ASSETS | 204.8 | 97.8 | ||||||||||||||||||
$ | 17,230.6 | $ | 14,023.7 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Accounts payable - trade | $ | 326.4 | $ | 210.5 | ||||||||||||||||
Accrued liabilities and other | 407.7 | 318.0 | ||||||||||||||||||
Current maturities of long-term debt | 125.5 | — | ||||||||||||||||||
Total current liabilities | 859.6 | 528.5 | ||||||||||||||||||
LONG-TERM DEBT | 6,042.3 | 5,010.4 | ||||||||||||||||||
OTHER LIABILITIES | 798.2 | 396.0 | ||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
VALARIS SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Class A ordinary shares, U.S. $.40 par value, 205.8 million and 115.2 million shares issued as of September 30, 2019 and December 31, 2018 | 82.4 | 46.1 | ||||||||||||||||||
Class B ordinary shares, £1 par value, 50,000 shares authorized and issued as of September 30, 2019 and December 31, 2018 | .1 | .1 | ||||||||||||||||||
Additional paid-in capital | 8,617.5 | 7,225.0 | ||||||||||||||||||
Retained earnings | 887.7 | 874.2 | ||||||||||||||||||
Accumulated other comprehensive income | 18.9 | 18.2 | ||||||||||||||||||
Treasury shares, at cost, 7.9 million and 5.9 million shares as of September 30, 2019 and December 31, 2018 | (75.2) | (72.2) | ||||||||||||||||||
Total Valaris shareholders' equity | 9,531.4 | 8,091.4 | ||||||||||||||||||
NONCONTROLLING INTERESTS | (0.9) | (2.6) | ||||||||||||||||||
Total equity | 9,530.5 | 8,088.8 | ||||||||||||||||||
$ | 17,230.6 | $ | 14,023.7 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
NET INCOME (LOSS) | $ | (4,116.5 | ) | $ | 219.3 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET | |||||||
Net change in derivative fair value | (8.1 | ) | (1.6 | ) | |||
Reclassification of net (gains) losses on derivative instruments from other comprehensive income (loss) into net income (loss) | (11.0 | ) | 3.4 | ||||
Other | (.4 | ) | (.1 | ) | |||
NET OTHER COMPREHENSIVE INCOME (LOSS) | (19.5 | ) | 1.7 | ||||
COMPREHENSIVE INCOME (LOSS) | (4,136.0 | ) | 221.0 | ||||
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 2.8 | (4.2 | ) | ||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (4,133.2 | ) | $ | 216.8 |
June 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 202.0 | $ | 97.2 | |||
Accounts receivable, net | 363.3 | 520.7 | |||||
Other current assets | 500.8 | 446.5 | |||||
Total current assets | 1,066.1 | 1,064.4 | |||||
PROPERTY AND EQUIPMENT, AT COST | 13,220.3 | 18,393.8 | |||||
Less accumulated depreciation | 2,027.7 | 3,296.9 | |||||
Property and equipment, net | 11,192.6 | 15,096.9 | |||||
LONG-TERM NOTES RECEIVABLE FROM ARO | 452.8 | 452.9 | |||||
INVESTMENT IN ARO | 117.2 | 128.7 | |||||
OTHER ASSETS | 210.2 | 188.3 | |||||
$ | 13,038.9 | $ | 16,931.2 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable - trade | $ | 151.9 | $ | 288.2 | |||
Accrued liabilities and other | 398.1 | 417.7 | |||||
Current maturities of long-term debt | 2,518.1 | 124.8 | |||||
Total current liabilities | 3,068.1 | 830.7 | |||||
LONG-TERM DEBT | 4,092.2 | 5,923.5 | |||||
OTHER LIABILITIES | 693.2 | 867.4 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
VALARIS SHAREHOLDERS' EQUITY | |||||||
Class A ordinary shares, U.S. $.40 par value, 206.1 and 205.9 million shares issued as of June 30, 2020 and December 31, 2019 | 82.5 | 82.4 | |||||
Class B ordinary shares, £1 par value, 50,000 shares issued as of June 30, 2020 and December 31, 2019 | .1 | .1 | |||||
Additional paid-in capital | 8,639.9 | 8,627.8 | |||||
Retained (deficit) earnings | (3,442.0 | ) | 671.7 | ||||
Accumulated other comprehensive (loss) income | (13.3 | ) | 6.2 | ||||
Treasury shares, at cost, 6.8 million and 7.9 million shares as of June 30, 2020 and December 31, 2019 | (76.8 | ) | (77.3 | ) | |||
Total Valaris shareholders' equity | 5,190.4 | 9,310.9 | |||||
NONCONTROLLING INTERESTS | (5.0 | ) | (1.3 | ) | |||
Total equity | 5,185.4 | 9,309.6 | |||||
$ | 13,038.9 | $ | 16,931.2 |
Nine Months Ended September 30, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income (loss) | $ | 21.8 | $ | (433.5) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities of continuing operations: | |||||||||||||||||
Gain on bargain purchase | (659.8) | (1.8) | |||||||||||||||
Depreciation expense | 445.9 | 356.5 | |||||||||||||||
(Gain) loss on extinguishment of debt | (194.1) | 19.0 | |||||||||||||||
Loss on impairment | 90.7 | — | |||||||||||||||
Share-based compensation expense | 28.7 | 21.6 | |||||||||||||||
Amortization, net | (18.1) | (30.7) | |||||||||||||||
Contributions to pension plans | (8.0) | — | |||||||||||||||
Deferred income tax expense (benefit) | (3.8) | 44.9 | |||||||||||||||
Equity in earnings of ARO | 3.1 | — | |||||||||||||||
Loss from discontinued operations, net | — | 8.1 | |||||||||||||||
Other | 13.4 | (5.3) | |||||||||||||||
Changes in operating assets and liabilities | (147.3) | (61.0) | |||||||||||||||
Net cash used in operating activities of continuing operations | (427.5) | (82.2) | |||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Rowan cash acquired | 931.9 | — | |||||||||||||||
Maturities of short-term investments | 474.0 | 675.0 | |||||||||||||||
Additions to property and equipment | (174.2) | (378.7) | |||||||||||||||
Purchases of short-term investments | (145.0) | (669.0) | |||||||||||||||
Other | 4.9 | 10.0 | |||||||||||||||
Net cash provided by (used in) investing activities of continuing operations | 1,091.6 | (362.7) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Reduction of long-term borrowings | (928.1) | (771.2) | |||||||||||||||
Borrowings on credit facility | 175.0 | — | |||||||||||||||
Repayments of credit facility borrowings | (34.4) | — | |||||||||||||||
Debt solicitation fees | (9.4) | — | |||||||||||||||
Cash dividends paid | (4.5) | (13.4) | |||||||||||||||
Proceeds from issuance of senior notes | — | 1,000.0 | |||||||||||||||
Debt issuance costs | — | (17.0) | |||||||||||||||
Other | (7.7) | (4.7) | |||||||||||||||
Net cash provided by (used in) financing activities | (809.1) | 193.7 | |||||||||||||||
Net cash provided by discontinued operations | — | 2.5 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (.6) | (.7) | |||||||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (145.6) | (249.4) | |||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 275.1 | 445.4 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 129.5 | $ | 196.0 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | (4,116.5 | ) | $ | 219.3 | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Loss on impairment | 3,646.2 | 2.5 | |||||
Depreciation expense | 296.0 | 282.9 | |||||
Deferred income tax expense (benefit) | (109.1 | ) | 17.3 | ||||
Debt discounts and other | 28.8 | 8.7 | |||||
Share-based compensation expense | 13.5 | 19.2 | |||||
Amortization, net | 12.2 | (17.3 | ) | ||||
Equity in earnings of ARO | 11.5 | (.6 | ) | ||||
(Gain on) adjustment to bargain purchase | 6.3 | (712.8 | ) | ||||
Other | (2.7 | ) | 2.9 | ||||
Changes in operating assets and liabilities | (156.7 | ) | (111.5 | ) | |||
Contributions to pension plans and other post-retirement benefits | (10.6 | ) | (4.0 | ) | |||
Net cash used in operating activities | (381.1 | ) | (293.4 | ) | |||
INVESTING ACTIVITIES | |||||||
Additions to property and equipment | (67.1 | ) | (134.8 | ) | |||
Net proceeds from disposition of assets | 13.8 | 4.5 | |||||
Maturities of short-term investments | — | 339.0 | |||||
Rowan cash acquired | — | 931.9 | |||||
Purchases of short-term investments | — | (145.0 | ) | ||||
Net cash provided by (used in) investing activities | (53.3 | ) | 995.6 | ||||
FINANCING ACTIVITIES | |||||||
Borrowings on credit facility | 566.0 | — | |||||
Repayments of credit facility borrowings | (15.0 | ) | — | ||||
Reduction of long-term borrowings | (9.7 | ) | — | ||||
Debt solicitation fees | — | (8.7 | ) | ||||
Cash dividends paid | — | (4.5 | ) | ||||
Other | (1.9 | ) | (4.7 | ) | |||
Net cash provided by (used in) financing activities | 539.4 | (17.9 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (.2 | ) | (.3 | ) | |||
INCREASE IN CASH AND CASH EQUIVALENTS | 104.8 | 684.0 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 97.2 | 275.1 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 202.0 | $ | 959.1 |
September 30, 2019 | December 31, 2018 | ||||||||||
Current contract assets | $ | 10.7 | $ | 4.0 | |||||||
Current contract liabilities (deferred revenue) | $ | 24.6 | $ | 56.9 | |||||||
Noncurrent contract liabilities (deferred revenue) | $ | 11.7 | $ | 20.5 |
June 30, 2020 | December 31, 2019 | ||||||
Current contract assets | $ | 6.6 | $ | 3.5 | |||
Noncurrent contract assets | $ | .5 | $ | — | |||
Current contract liabilities (deferred revenue) | $ | 31.5 | $ | 30.0 | |||
Noncurrent contract liabilities (deferred revenue) | $ | 11.2 | $ | 9.7 |
Contract Assets | Contract Liabilities | ||||||||||
Balance as of December 31, 2018 | $ | 4.0 | $ | 77.4 | |||||||
Contract assets acquired and liabilities assumed in the Rowan Transaction | 8.4 | 5.3 | |||||||||
Revenue recognized in advance of right to bill customer | 0.3 | — | |||||||||
Increase due to cash received | — | 29.4 | |||||||||
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance | — | (52.1) | |||||||||
Decrease due to amortization of deferred revenue that was added during the period | — | (23.7) | |||||||||
Decrease due to transfer to receivables during the period | (2.0) | — | |||||||||
Balance as of September 30, 2019 | $ | 10.7 | $ | 36.3 |
Contract Assets | Contract Liabilities | ||||||
Balance as of December 31, 2019 | $ | 3.5 | $ | 39.7 | |||
Revenue recognized in advance of right to bill customer | 4.6 | — | |||||
Increase due to cash received | — | 23.5 | |||||
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance | — | (17.5 | ) | ||||
Decrease due to amortization of deferred revenue that was added during the period | — | (3.0 | ) | ||||
Decrease due to transfer to receivables during the period | (1.0 | ) | — | ||||
Balance as of June 30, 2020 | $ | 7.1 | $ | 42.7 |
Remaining 2019 | 2020 | 2021 | 2022 and Thereafter | Total | Remaining 2020 | 2021 | 2022 | 2023 and Thereafter | Total | |||||||||||||||||||||||||||||||||||||||
Amortization of contract liabilities | Amortization of contract liabilities | $ | 12.1 | $ | 12.9 | $ | 7.2 | $ | 4.1 | $ | 36.3 | $ | 21.6 | $ | 17.2 | $ | 3.9 | $ | — | $ | 42.7 | |||||||||||||||||||||||||||
Amortization of deferred costs | Amortization of deferred costs | $ | 12.1 | $ | 15.9 | $ | 3.3 | $ | 1.4 | $ | 32.7 | $ | 15.7 | $ | 11.1 | $ | 3.2 | $ | .3 | $ | 30.3 |
Amounts Recognized as of Merger Date | Measurement Period Adjustments(1) | Estimated Fair Value | |||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 931.9 | $ | — | $ | 931.9 | |||||||||||
Accounts receivable(2) | 207.1 | (2.6) | 204.5 | ||||||||||||||
Other current assets | 101.6 | — | 101.6 | ||||||||||||||
Long-term notes receivable from ARO | 454.5 | — | 454.5 | ||||||||||||||
Investment in ARO | 138.8 | 2.5 | 141.3 | ||||||||||||||
Property and equipment | 2,989.8 | (14.2) | 2,975.6 | ||||||||||||||
Other assets | 41.7 | (1.8) | 39.9 | ||||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable and accrued liabilities | 259.4 | (0.3) | 259.1 | ||||||||||||||
Current portion of long-term debt | 203.2 | — | 203.2 | ||||||||||||||
Long-term debt | 1,910.9 | — | 1,910.9 | ||||||||||||||
Other liabilities | 376.3 | 37.2 | 413.5 | ||||||||||||||
Net assets acquired | 2,115.6 | (53.0) | 2,062.6 | ||||||||||||||
Less: Merger consideration | (1,402.8) | — | (1,402.8) | ||||||||||||||
Estimated bargain purchase gain | $ | 712.8 | $ | (53.0) | $ | 659.8 |
Amounts Recognized as of Transaction Date | Measurement Period Adjustments (1) | Estimated Fair Value | |||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 931.9 | $ | — | $ | 931.9 | |||
Accounts receivable (2) | 207.1 | (6.9 | ) | 200.2 | |||||
Other current assets | 101.6 | (2.6 | ) | 99.0 | |||||
Long-term notes receivable from ARO | 454.5 | — | 454.5 | ||||||
Investment in ARO | 138.8 | 2.5 | 141.3 | ||||||
Property and equipment | 2,989.8 | (26.0 | ) | 2,963.8 | |||||
Other assets | 41.7 | 1.1 | 42.8 | ||||||
Liabilities: | |||||||||
Accounts payable and accrued liabilities | 259.4 | 15.7 | 275.1 | ||||||
Current portion of long-term debt | 203.2 | — | 203.2 | ||||||
Long-term debt | 1,910.9 | — | 1,910.9 | ||||||
Other liabilities | 376.3 | 34.5 | 410.8 | ||||||
Net assets acquired | 2,115.6 | (82.1 | ) | 2,033.5 | |||||
Less: Merger consideration | (1,402.8 | ) | — | (1,402.8 | ) | ||||
Estimated bargain purchase gain | $ | 712.8 | $ | (82.1 | ) | $ | 630.7 |
(1) | The measurement period adjustments reflect changes in the estimated fair values of certain assets and liabilities, primarily related to long-lived assets, deferred income taxes and uncertain tax positions. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Transaction Date and did not result from subsequent intervening events. The adjustments recorded resulted in a $6.3 million decline to bargain purchase gain during the first quarter of 2020 and are included in other, net, in our condensed consolidated statements of operations for the six monthsendedJune 30, 2020. |
(2) | Gross contractual amounts receivable totaled $208.3 million as of the Transaction Date. |
(in millions, except per share amounts) | (in millions, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||
2019(1) | 2018 | 2019(1) | 2018 | ||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | $ | 552.0 | $ | 624.0 | $ | 1,729.5 | $ | 1,952.0 | $ | 599.0 | $ | 1,179.5 | ||||||||||||||||||||||||||||||
Net loss | Net loss | $ | (151.1) | $ | (250.0) | $ | (795.2) | $ | (607.1) | $ | (271.3 | ) | $ | (591.8 | ) | ||||||||||||||||||||||||||||
Loss per share - basic and diluted | Loss per share - basic and diluted | $ | (0.53) | $ | (1.27) | $ | (3.14) | $ | (3.09) | $ | (1.38 | ) | $ | (3.02 | ) |
(1) | Pro forma net loss and loss per share were adjusted to exclude an aggregate $71.5 million and $80.8 million of transaction-related and integration costs incurred during the three and six months ended June 30, 2019, respectively, and the estimated $712.8 million bargain purchase gain. |
Three Months Ended | Six Months Ended | April 11 - June 30, 2019 | ||||||||||
June 30, 2020 | ||||||||||||
Revenues | $ | 146.0 | $ | 286.3 | $ | 123.8 | ||||||
Operating expenses | ||||||||||||
Contract drilling (exclusive of depreciation) | 112.5 | 220.8 | 78.9 | |||||||||
Depreciation | 13.3 | 26.3 | 12.4 | |||||||||
General and administrative | 7.1 | 15.4 | 5.3 | |||||||||
Operating income | 13.1 | 23.8 | 27.2 | |||||||||
Other expense, net | 6.7 | 13.3 | 8.7 | |||||||||
Provision (Benefit) for income taxes | (.2 | ) | .7 | 1.7 | ||||||||
Net income | $ | 6.6 | $ | 9.8 | $ | 16.8 |
June 30, 2020 | December 31, 2019 | ||||||
Current assets | $ | 349.2 | $ | 407.2 | |||
Non-current assets | 924.1 | 874.8 | |||||
Total assets | $ | 1,273.3 | $ | 1,282.0 | |||
Current liabilities | $ | 206.8 | $ | 183.2 | |||
Non-current liabilities | 973.4 | 1,015.5 | |||||
Total liabilities | $ | 1,180.2 | $ | 1,198.7 |
Three Months Ended September 30, 2019 | April 11 - September 30, 2019 | ||||||||||
Revenues | $ | 138.4 | $ | 262.2 | |||||||
Operating expenses | |||||||||||
Contract drilling (exclusive of depreciation) | 92.7 | 171.7 | |||||||||
Depreciation | 14.6 | 26.9 | |||||||||
General and administrative | 8.8 | 13.9 | |||||||||
Operating income | 22.3 | 49.7 | |||||||||
Other expense, net | 9.9 | 18.8 | |||||||||
Provision for income taxes | 2.2 | 3.8 | |||||||||
Net income | $ | 10.2 | $ | 27.1 |
Three Months Ended | Six Months Ended | April 11 - June 30, 2019 | |||||||||||||||||||||
Three Months Ended September 30, 2019 | April 11 - September 30, 2019 | June 30, 2020 | |||||||||||||||||||||
50% interest in ARO net income | 50% interest in ARO net income | $ | 5.1 | $ | 13.6 | $ | 3.3 | $ | 4.9 | $ | 8.4 | ||||||||||||
Amortization of basis differences | Amortization of basis differences | (8.8) | (16.7) | (8.5 | ) | (16.4 | ) | (7.8 | ) | ||||||||||||||
Equity in earnings of ARO | Equity in earnings of ARO | $ | (3.7) | $ | (3.1) | $ | (5.2 | ) | $ | (11.5 | ) | $ | .6 |
Three Months Ended September 30, 2019 | April 11 - September 30, 2019 | |||||||||||||
Lease revenue | $ | 19.9 | $ | 37.0 | ||||||||||
Secondment revenue | 17.9 | 33.5 | ||||||||||||
Transition Services revenue | 5.0 | 10.2 | ||||||||||||
Total revenue from ARO (1) | $ | 42.8 | $ | 80.7 | ||||||||||
Three Months Ended | Six Months Ended | April 11 - June 30, 2019 | ||||||||||
June 30, 2020 | ||||||||||||
Lease revenue | $ | 19.9 | $ | 41.4 | $ | 18.3 | ||||||
Secondment and Transition Services revenue | .2 | 22.0 | 20.8 | |||||||||
Total revenue from ARO (1) | $ | 20.1 | $ | 63.4 | $ | 39.1 |
(1) | All of the revenues presented above are included in our Other segment in our segment disclosures. See "Note 14 - Segment Information" for additional information. |
Maturity Date | |||||
June 30, 2020 | December 31, 2019 | |||||||
Total assets | $ | 593.7 | $ | 623.5 | ||||
Less: total liabilities | — | .7 | ||||||
Maximum exposure to loss | $ | 593.7 | $ | 622.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||||||||||||||
As of September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Supplemental executive retirement plan assets | $ | 25.1 | $ | — | $ | — | $ | 25.1 | ||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||||||||||||||||||
Total financial assets | $ | 25.1 | $ | — | $ | — | $ | 25.1 | ||||||||||||||||||||||||||||||
Derivatives, net | $ | — | $ | (7.9) | $ | — | $ | (7.9) | ||||||||||||||||||||||||||||||
Total financial liabilities | $ | — | $ | (7.9) | $ | — | $ | (7.9) | ||||||||||||||||||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
As of June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Supplemental executive retirement plan assets | Supplemental executive retirement plan assets | $ | 27.2 | $ | — | $ | — | $ | 27.2 | $ | 22.3 | $ | — | $ | — | $ | 22.3 | |||||||||||||||||||||
Total financial assets | Total financial assets | $ | 27.2 | $ | — | $ | — | $ | 27.2 | 22.3 | — | — | 22.3 | |||||||||||||||||||||||||
Derivatives, net | Derivatives, net | $ | — | $ | (10.7) | $ | — | $ | (10.7) | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||||||
Total financial liabilities | Total financial liabilities | $ | — | $ | (10.7) | $ | — | $ | (10.7) | $ | — | $ | (1.0 | ) | $ | — | $ | (1.0 | ) | |||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Supplemental executive retirement plan assets | $ | 26.0 | $ | — | $ | — | $ | 26.0 | ||||||||||||||||||||||||||||||
Derivatives, net | — | 5.4 | — | 5.4 | ||||||||||||||||||||||||||||||||||
Total financial assets | $ | 26.0 | $ | 5.4 | $ | — | $ | 31.4 |
June 30, 2020 | December 31, 2019 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
6.875% Senior notes due 2020 | $ | 123.4 | $ | 9.7 | $ | 124.8 | $ | 117.3 | |||||||
4.70% Senior notes due 2021 | 100.5 | 7.1 | 113.2 | 95.5 | |||||||||||
4.875% Senior notes due 2022 | 603.3 | 69.2 | 599.2 | 460.5 | |||||||||||
3.00% Exchangeable senior notes due 2024(1) | 716.2 | 124.0 | 699.0 | 607.4 | |||||||||||
4.50% Senior notes due 2024 | 302.1 | 26.3 | 302.0 | 167.2 | |||||||||||
4.75% Senior notes due 2024 | 280.8 | 33.5 | 276.5 | 201.4 | |||||||||||
8.00% Senior notes due 2024 | 295.4 | 19.4 | 295.7 | 181.7 | |||||||||||
5.20% Senior notes due 2025 | 331.9 | 28.1 | 331.7 | 186.7 | |||||||||||
7.375% Senior notes due 2025 | 331.4 | 37.2 | 329.2 | 218.6 | |||||||||||
7.75% Senior notes due 2026 | 988.2 | 82.6 | 987.1 | 575.1 | |||||||||||
7.20% Debentures due 2027 | 111.7 | 15.7 | 111.7 | 70.0 | |||||||||||
7.875% Senior notes due 2040 | 372.3 | 22.1 | 373.3 | 153.5 | |||||||||||
5.40% Senior notes due 2042 | 263.7 | 42.3 | 262.8 | 194.4 | |||||||||||
5.75% Senior notes due 2044 | 974.4 | 76.4 | 973.3 | 450.0 | |||||||||||
5.85% Senior notes due 2044 | 269.5 | 44.6 | 268.8 | 194.8 | |||||||||||
Amounts borrowed under credit facility(2) | 545.5 | 551.0 | — | — | |||||||||||
Total debt | $ | 6,610.3 | $ | 1,189.2 | $ | 6,048.3 | $ | 3,874.1 | |||||||
Less: current maturities | 2,518.1 | 794.6 | 124.8 | 117.3 | |||||||||||
Total long-term debt | $ | 4,092.2 | $ | 394.6 | $ | 5,923.5 | $ | 3,756.8 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||||||
6.875% Senior notes due 2020 | $ | 125.5 | $ | 121.3 | $ | 127.5 | $ | 121.6 | |||||||||||||||||||||||||||
4.70% Senior notes due 2021 | 113.1 | 98.7 | 112.7 | 101.8 | |||||||||||||||||||||||||||||||
4.875% Senior notes due 2022(2) | 597.1 | 474.9 | — | — | |||||||||||||||||||||||||||||||
3.00% Exchangeable senior notes due 2024(1) | 691.0 | 573.4 | 666.8 | 575.5 | |||||||||||||||||||||||||||||||
4.50% Senior notes due 2024 | 301.9 | 170.5 | 619.8 | 405.2 | |||||||||||||||||||||||||||||||
4.75% Senior notes due 2024(2) | 274.3 | 197.9 | — | — | |||||||||||||||||||||||||||||||
8.00% Senior notes due 2024 | 296.0 | 195.4 | 337.0 | 273.7 | |||||||||||||||||||||||||||||||
7.375% Senior notes due 2025(2) | 328.1 | 214.1 | — | — | |||||||||||||||||||||||||||||||
5.20% Senior notes due 2025 | 331.6 | 180.3 | 664.4 | 443.9 | |||||||||||||||||||||||||||||||
7.75% Senior notes due 2026 | 986.6 | 541.9 | 985.0 | 725.5 | |||||||||||||||||||||||||||||||
7.20% Debentures due 2027 | 111.6 | 70.5 | 149.3 | 109.1 | |||||||||||||||||||||||||||||||
7.875% Senior notes due 2040 | 373.7 | 155.3 | 375.0 | 223.2 | |||||||||||||||||||||||||||||||
5.40% Senior notes due 2042(2) | 262.3 | 192.2 | — | — | |||||||||||||||||||||||||||||||
5.75% Senior notes due 2044 | 973.7 | 434.0 | 972.9 | 566.3 | |||||||||||||||||||||||||||||||
5.85% Senior notes due 2044(2) | 268.4 | 197.1 | — | — | |||||||||||||||||||||||||||||||
Amounts borrowed under credit facility(3) | 132.9 | 140.6 | — | — | |||||||||||||||||||||||||||||||
Total debt | $ | 6,167.8 | $ | 3,958.1 | $ | 5,010.4 | $ | 3,545.8 | |||||||||||||||||||||||||||
Less: current maturities | 125.5 | 121.3 | — | — | |||||||||||||||||||||||||||||||
Total long-term debt | $ | 6,042.3 | $ | 3,836.8 | $ | 5,010.4 | $ | 3,545.8 |
(1) | Our 2024 Convertible Notes were issued with a conversion feature. The 2024 Convertible Notes were separated into their liability and equity components on our condensed consolidated balance sheet. The equity component was initially recorded to additional paid-in capital and as a debt discount that will be amortized to interest expense over the life of the instrument. Excluding the unamortized discount, the carrying value of the 2024 Convertible Notes was $839.9 million and $838.3 million as of June 30, 2020 and December 31, 2019, respectively. |
(2) | Total outstanding borrowings under our credit facility are $551.0 million and are recorded net of $5.5 million of unamortized deferred financing cost on our condensed consolidated balance sheet. In addition, we have $37.8 million in letters of credit issued under our credit facility, leaving $1.0 billion of undrawn borrowing capacity at June 30, 2020. |
June 30, 2020 | December 31, 2019 | |||||||
Drilling rigs and equipment | $ | 12,559.5 | $ | 17,714.0 | ||||
Work-in-progress | 473.2 | 473.6 | ||||||
Other | 187.6 | 206.2 | ||||||
$ | 13,220.3 | $ | 18,393.8 |
Three Months Ended September 30, 2019 | April 11 to September 30, 2019 | |||||||||||||
Service cost (1) | $ | 0.5 | $ | 1.0 | ||||||||||
Interest cost (2) | 7.7 | 13.9 | ||||||||||||
Expected return on plan assets (2) | (9.4) | (17.6) | ||||||||||||
Net periodic pension cost | $ | (1.2) | $ | (2.7) |
Three Months Ended | Six Months Ended | April 11 - June 30, 2019 | ||||||||||
June 30, 2020 | ||||||||||||
Service cost (1) | $ | .7 | $ | 1.3 | $ | .4 | ||||||
Interest cost (2) | 6.4 | 12.9 | 6.5 | |||||||||
Expected return on plan assets (2) | (9.5 | ) | (19.0 | ) | (8.2 | ) | ||||||
Net periodic pension and retiree medical cost (income) | $ | (2.4 | ) | $ | (4.8 | ) | $ | (1.3 | ) |
(1) | Included in contract drilling and general and administrative expense in our condensed consolidated statements of operations. |
(2) | Included in other, net, in our condensed consolidated statements of operations. |
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - current(1) | $ | — | $ | .2 | $ | 7.0 | $ | 8.3 | |||||||||||||||||||||||||||
Foreign currency forward contracts - non-current(2) | — | — | .4 | .4 | |||||||||||||||||||||||||||||||
$ | — | $ | .2 | $ | 7.4 | $ | 8.7 | ||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign currency forward contracts - current(1) | $ | .3 | $ | .4 | $ | .8 | $ | 2.6 | |||||||||||||||||||||||||||
Total | $ | .3 | $ | .6 | $ | 8.2 | $ | 11.3 |
Derivative Assets | Derivative Liabilities | ||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||
Foreign currency forward contracts - current(1) | $ | 1.1 | $ | 4.2 | $ | 4.0 | $ | .7 | |||||||
Foreign currency forward contracts - non-current(2) | .3 | .8 | .2 | — | |||||||||||
$ | 1.4 | $ | 5.0 | $ | 4.2 | $ | .7 | ||||||||
Derivatives not Designated as Hedging Instruments | |||||||||||||||
Foreign currency forward contracts - current(1) | $ | 2.0 | $ | 1.3 | $ | .2 | $ | .2 | |||||||
Total | $ | 3.4 | $ | 6.3 | $ | 4.4 | $ | .9 |
(1) | Derivative assets and liabilities that have maturity dates equal to or less than 12 months from the respective balance sheet dates were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets. |
(2) | Derivative assets and liabilities that have maturity dates greater than 12 months from the respective balance sheet dates were included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets. |
Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) | (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)(1) | Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate lock contracts(3) | $ | — | $ | — | $ | 1.7 | $ | (.1) | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts(4) | (5.7) | (1.9) | 3.2 | (.6) | — | (.3) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (5.7) | $ | (1.9) | $ | 4.9 | $ | (.7) | $ | — | $ | (.3) |
Gain (Loss) Recognized in Other Comprehensive Loss ("OCI") on Derivatives (Effective Portion) | (Gain) Loss Reclassified from ("AOCI") into Income (Effective Portion)(1) | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign currency forward contracts(2) | $ | 4.8 | $ | (1.6 | ) | $ | (10.9 | ) | $ | 1.8 |
Loss Recognized in Other Comprehensive Loss ("OCI") on Derivatives (Effective Portion) | (Gain) Loss Reclassified from ("AOCI") into Income (Effective Portion)(1) | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest rate lock contracts(3) | $ | — | $ | — | $ | — | $ | .1 | |||||||
Foreign currency forward contracts(4) | (8.1 | ) | (1.6 | ) | (11.0 | ) | 3.3 | ||||||||
Total | $ | (8.1 | ) | $ | (1.6 | ) | $ | (11.0 | ) | $ | 3.4 |
(1) | Changes in the fair value of cash flow hedges are recorded in AOCI. Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction. |
Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) | (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)(1) | Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate lock contracts(3) | $ | — | $ | — | $ | 1.8 | $ | (.2) | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts(5) | (7.3) | (7.6) | 6.5 | 2.4 | — | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (7.3) | $ | (7.6) | $ | 8.3 | $ | 2.2 | $ | — | $ | (1.5) |
(2) | During the three months ended June 30, 2020, $1.6 million of losses were reclassified from AOCI into contract drilling expense and $12.5 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the three months ended June 30, 2019, $2.0 million of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
(3) | Losses on interest rate lock derivatives reclassified from AOCI into income were included in interest expense, net, in our condensed consolidated statements of operations. |
(4) | During the six months ended June 30, 2020, $2.5 million of losses were reclassified from AOCI into contract drilling expense and $13.5 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the six months ended June 30, 2019, $3.7 million of losses were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
September 30, 2019 | December 31, 2018 | ||||||||||
Drilling rigs and equipment | $ | 17,615.1 | $ | 14,542.5 | |||||||
Work-in-progress | 574.6 | 779.2 | |||||||||
Other | 203.2 | 195.3 | |||||||||
$ | 18,392.9 | $ | 15,517.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to Valaris | Income (loss) from continuing operations attributable to Valaris | $ | (197.1) | $ | (145.0) | $ | 18.0 | $ | (436.1) | $ | (1,107.4 | ) | $ | 405.5 | $ | (4,113.7 | ) | $ | 215.1 | |||||||||||||||||||||||||||||||
Income from continuing operations allocated to non-vested share awards(1) | Income from continuing operations allocated to non-vested share awards(1) | — | (.2) | (.6) | (.4) | — | (12.1 | ) | — | (6.3 | ) | |||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to Valaris shares | Income (loss) from continuing operations attributable to Valaris shares | $ | (197.1) | $ | (145.2) | $ | 17.4 | $ | (436.5) | $ | (1,107.4 | ) | $ | 393.4 | $ | (4,113.7 | ) | $ | 208.8 |
(1) | Losses are not allocated to non-vested share awards. Due to the net loss position, potentially dilutive share awards are excluded from the computation of diluted EPS. There were no potentially dilutive share awards for the three and six months ended June 30, 2019. |
Aggregate Principal Amount Repurchased | Aggregate Repurchase Price(1) | ||||||||||
4.50% Senior notes due 2024 | $ | 320.0 | $ | 240.0 | |||||||
5.20% Senior notes due 2025 | 335.5 | 250.0 | |||||||||
7.20% Senior notes due 2027 | 37.9 | 29.9 | |||||||||
4.75% Senior notes due 2024 | 79.5 | 61.2 | |||||||||
7.375% Senior notes due 2025 | 139.2 | 109.2 | |||||||||
8.00% Senior notes due 2024 | 39.7 | 33.8 | |||||||||
Total | $ | 951.8 | $ | 724.1 |
Shares | Par Value | Additional Paid-in Capital | Retained Earnings | AOCI | Treasury Shares | Non-controlling Interest | |||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2018 | 115.2 | $ | 46.2 | $ | 7,225.0 | $ | 874.2 | $ | 18.2 | $ | (72.2) | $ | (2.6) | ||||||||||||||||||||||||||||
Net loss | — | — | — | (190.4) | — | — | 2.4 | ||||||||||||||||||||||||||||||||||
Dividends paid ($0.04 per share) | — | — | — | (4.5) | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued under share-based compensation plans, net | — | — | (.1) | — | — | .1 | — | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (2.8) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 5.3 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net other comprehensive income | — | — | — | — | 1.5 | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2019 | 115.2 | $ | 46.2 | $ | 7,230.2 | $ | 679.3 | $ | 19.7 | $ | (74.9) | $ | (0.2) | ||||||||||||||||||||||||||||
Net income | — | — | — | 405.5 | — | — | 1.8 | ||||||||||||||||||||||||||||||||||
Equity issuance in connection with the Rowan Transaction | 88.0 | 35.2 | 1,365.5 | — | — | 2.1 | — | ||||||||||||||||||||||||||||||||||
Shares issued under share-based compensation plans, net | 2.6 | 1.1 | (1.1) | — | — | (.8) | — | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (1.4) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 13.8 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net other comprehensive income | — | — | — | — | .2 | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, June 30, 2019 | 205.8 | $ | 82.5 | $ | 8,608.4 | $ | 1,084.8 | $ | 19.9 | $ | (75.0) | $ | 1.6 | ||||||||||||||||||||||||||||
Net loss | — | — | — | (197.1) | — | — | (.4) | ||||||||||||||||||||||||||||||||||
Equity issuance costs | — | — | (.6) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (.2) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 9.7 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (2.1) | ||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (1.0) | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, September 30, 2019 | 205.8 | $ | 82.5 | $ | 8,617.5 | $ | 887.7 | $ | 18.9 | $ | (75.2) | $ | (0.9) |
Shares | Par Value | Additional Paid-in Capital | Retained Earnings (Deficit) | AOCI | Treasury Shares | Non-controlling Interest | ||||||||||||||||||||
BALANCE, December 31, 2019 | 205.9 | $ | 82.5 | $ | 8,627.8 | $ | 671.7 | $ | 6.2 | $ | (77.3 | ) | $ | (1.3 | ) | |||||||||||
Net loss | — | — | — | (3,006.3 | ) | — | — | (1.4 | ) | |||||||||||||||||
Shares issued under share-based compensation plans, net | — | — | (.7 | ) | — | — | .9 | — | ||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (.9 | ) | — | ||||||||||||||||||
Share-based compensation cost | — | — | 7.8 | — | — | — | — | |||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (13.4 | ) | — | — | ||||||||||||||||||
BALANCE, March 31, 2020 | 205.9 | $ | 82.5 | $ | 8,634.9 | $ | (2,334.6 | ) | $ | (7.2 | ) | $ | (77.3 | ) | $ | (2.7 | ) | |||||||||
Net loss | — | — | — | (1,107.4 | ) | — | — | (1.4 | ) | |||||||||||||||||
Shares issued under share-based compensation plans, net | .2 | .1 | (.7 | ) | — | — | .6 | — | ||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (.1 | ) | — | ||||||||||||||||||
Share-based compensation cost | — | — | 5.7 | — | — | — | — | |||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (6.1 | ) | — | — | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (.9 | ) | ||||||||||||||||||
BALANCE, June 30, 2020 | 206.1 | $ | 82.6 | $ | 8,639.9 | $ | (3,442.0 | ) | $ | (13.3 | ) | $ | (76.8 | ) | $ | (5.0 | ) |
Shares | Par Value | Additional Paid-in Capital | Retained Earnings | AOCI | Treasury Shares | Non-controlling Interest | ||||||||||||||||||||
BALANCE, December 31, 2018 | 115.2 | $ | 46.2 | $ | 7,225.0 | $ | 874.2 | $ | 18.2 | $ | (72.2 | ) | $ | (2.6 | ) | |||||||||||
Net loss | — | — | — | (190.4 | ) | — | — | 2.4 | ||||||||||||||||||
Dividends paid ($0.04 per share) | — | — | — | (4.5 | ) | — | — | — | ||||||||||||||||||
Shares issued under share-based compensation plans, net | — | — | (.1 | ) | — | — | .1 | — | ||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (2.8 | ) | — | ||||||||||||||||||
Share-based compensation cost | — | — | 5.3 | — | — | — | — | |||||||||||||||||||
Net other comprehensive income | — | — | — | — | 1.5 | — | — | |||||||||||||||||||
BALANCE, March 31, 2019 | 115.2 | $ | 46.2 | $ | 7,230.2 | $ | 679.3 | $ | 19.7 | $ | (74.9 | ) | $ | (0.2 | ) | |||||||||||
Net income | — | — | — | 405.5 | — | — | 1.8 | |||||||||||||||||||
Equity issuance in connection with the Rowan Transaction | 88.0 | 35.2 | 1,367.5 | — | — | .1 | — | |||||||||||||||||||
Shares issued under share-based compensation plans, net | 2.6 | 1.1 | (1.1 | ) | — | — | (.8 | ) | — | |||||||||||||||||
Repurchase of shares | — | — | — | — | — | (1.4 | ) | — | ||||||||||||||||||
Share-based compensation cost | — | — | 13.8 | — | — | — | — | |||||||||||||||||||
Net other comprehensive income | — | — | — | — | .2 | — | — | |||||||||||||||||||
BALANCE, June 30, 2019 | 205.8 | $ | 82.5 | $ | 8,610.4 | $ | 1,084.8 | $ | 19.9 | $ | (77.0 | ) | $ | 1.6 |
Shares | Par Value | Additional Paid-in Capital | Retained Earnings | AOCI | Treasury Shares | Non-controlling Interest | |||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2017 | 111.8 | $ | 44.8 | $ | 7,195.0 | $ | 1,532.7 | $ | 28.6 | $ | (69.0) | $ | (2.1) | ||||||||||||||||||||||||||||
Net loss | — | — | — | (140.1) | — | — | (.4) | ||||||||||||||||||||||||||||||||||
Dividends paid ($0.04 per share) | — | — | — | (4.4) | — | — | — | ||||||||||||||||||||||||||||||||||
Cumulative-effect due to ASU 2018-02 | — | — | — | (.8) | .8 | — | — | ||||||||||||||||||||||||||||||||||
Shares issued under share-based compensation plans, net | — | — | (.1) | — | — | .1 | — | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (1.1) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 7.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (.4) | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2018 | 111.8 | $ | 44.8 | $ | 7,202.4 | $ | 1,387.4 | $ | 29.0 | $ | (70.0) | $ | (2.5) | ||||||||||||||||||||||||||||
Net loss | — | — | — | (151.0) | — | — | .9 | ||||||||||||||||||||||||||||||||||
Dividends paid ($0.04 per share) | — | — | — | (4.4) | — | — | — | ||||||||||||||||||||||||||||||||||
Shares issued under share-based compensation plans, net | 3.4 | 1.4 | (.4) | — | — | (1.4) | — | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (.7) | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | — | — | — | (.6) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 7.5 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (8.5) | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, June 30, 2018 | 115.2 | $ | 46.2 | $ | 7,209.5 | $ | 1,232.0 | $ | 20.5 | $ | (72.0) | $ | (2.3) | ||||||||||||||||||||||||||||
Net loss | — | — | — | (145.0) | — | — | 2.1 | ||||||||||||||||||||||||||||||||||
Dividends paid ($0.04 per share) | — | — | — | (4.5) | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (2.0) | ||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | (.1) | — | — | (.1) | — | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 7.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | (1.3) | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, September 30, 2018 | 115.2 | $ | 46.2 | $ | 7,216.6 | $ | 1,082.5 | $ | 19.2 | $ | (72.1) | $ | (2.2) |
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||
Long-term operating lease cost | $ | 8.3 | $ | 21.5 | |||||||
Short-term operating lease cost | 1.3 | 5.6 | |||||||||
Sublease income | (.7) | (1.7) | |||||||||
Total operating lease cost | $ | 8.9 | $ | 25.4 |
Year Ending December 31, | Total | ||||
2019 (excluding the nine months ended September 30, 2019) | $ | 8.4 | |||
2020 | 24.2 | ||||
2021 | 17.6 | ||||
2022 | 12.0 | ||||
2023 | 10.4 | ||||
Thereafter | 22.2 | ||||
Total lease payments | $ | 94.8 | |||
Less imputed interest | 17.9 | ||||
Total | $ | 76.9 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 269.8 | $ | 217.8 | $ | 138.4 | $ | 63.7 | $ | (138.4) | $ | 551.3 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 250.3 | 213.5 | 92.7 | 32.7 | (92.7) | 496.5 | |||||||||||||||||||||||||||||
Loss on impairment | 88.2 | — | — | — | — | 88.2 | |||||||||||||||||||||||||||||
Depreciation | 98.1 | 59.0 | 14.6 | — | (8.7) | 163.0 | |||||||||||||||||||||||||||||
General and administrative | — | — | 8.8 | — | 27.3 | 36.1 | |||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (3.7) | (3.7) | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (166.8) | $ | (54.7) | $ | 22.3 | $ | 31.0 | $ | (68.0) | $ | (236.2) | |||||||||||||||||||||||
Property and equipment, net | $ | 10,187.5 | $ | 5,022.0 | $ | 652.5 | $ | — | $ | (611.3) | $ | 15,250.7 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 163.6 | $ | 186.3 | $ | 146.0 | $ | 38.9 | $ | (146.0 | ) | $ | 388.8 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 170.8 | 182.7 | 112.5 | 17.2 | (112.5 | ) | 370.7 | ||||||||||||||||
Loss on impairment | 831.9 | 0.4 | — | 5.7 | — | 838.0 | |||||||||||||||||
Depreciation | 62.0 | 52.8 | 13.3 | 11.2 | (7.8 | ) | 131.5 | ||||||||||||||||
General and administrative | — | — | 7.1 | — | 55.5 | 62.6 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (5.2 | ) | (5.2 | ) | |||||||||||||||
Operating income (loss) | $ | (901.1 | ) | $ | (49.6 | ) | $ | 13.1 | $ | 4.8 | $ | (86.4 | ) | $ | (1,019.2 | ) | |||||||
Property and equipment, net | $ | 6,536.9 | $ | 4,000.6 | $ | 739.7 | $ | 655.1 | $ | (739.7 | ) | $ | 11,192.6 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 241.8 | $ | 173.3 | $ | — | $ | 15.8 | $ | — | $ | 430.9 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 175.6 | 136.4 | — | 15.1 | — | 327.1 | |||||||||||||||||||||||||||||
Depreciation | 77.8 | 39.3 | — | — | 3.5 | 120.6 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 25.1 | 25.1 | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (11.6) | $ | (2.4) | $ | — | $ | 0.7 | $ | (28.6) | $ | (41.9) | |||||||||||||||||||||||
Property and equipment, net | $ | 9,501.7 | $ | 3,190.2 | $ | — | $ | — | $ | 39.7 | $ | 12,731.6 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 295.6 | $ | 229.2 | $ | 123.8 | $ | 59.1 | $ | (123.8 | ) | $ | 583.9 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 249.2 | 212.2 | 78.9 | 38.9 | (78.9 | ) | 500.3 | ||||||||||||||||
Loss on impairment | — | — | — | — | 2.5 | 2.5 | |||||||||||||||||
Depreciation | 98.4 | 55.5 | 12.4 | — | (8.4 | ) | 157.9 | ||||||||||||||||
General and administrative | — | — | 5.3 | — | 75.9 | 81.2 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | 0.6 | 0.6 | |||||||||||||||||
Operating income (loss) | $ | (52.0 | ) | $ | (38.5 | ) | $ | 27.2 | $ | 20.2 | $ | (114.3 | ) | $ | (157.4 | ) | |||||||
Property and equipment, net | $ | 10,364.7 | $ | 5,055.6 | $ | 656.5 | $ | — | $ | (621.1 | ) | $ | 15,455.7 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 343.2 | $ | 399.1 | $ | 286.3 | $ | 103.1 | $ | (286.3 | ) | $ | 845.4 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 384.7 | 408.8 | 220.8 | 53.2 | (220.8 | ) | 846.7 | ||||||||||||||||
Loss on impairment | 3,386.2 | 254.3 | — | 5.7 | — | 3,646.2 | |||||||||||||||||
Depreciation | 151.4 | 111.3 | 26.3 | 22.3 | (15.3 | ) | 296.0 | ||||||||||||||||
General and administrative | — | — | 15.4 | — | 100.6 | 116.0 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (11.5 | ) | (11.5 | ) | |||||||||||||||
Operating income (loss) | $ | (3,579.1 | ) | $ | (375.3 | ) | $ | 23.8 | $ | 21.9 | $ | (162.3 | ) | $ | (4,071.0 | ) | |||||||
Property and equipment, net | $ | 6,536.9 | $ | 4,000.6 | $ | 739.7 | $ | 655.1 | $ | (739.7 | ) | $ | 11,192.6 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 528.3 | $ | 386.2 | 123.8 | $ | 75.3 | $ | (123.8 | ) | $ | 989.8 | |||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 431.0 | 347.6 | 78.9 | 54.3 | (78.9 | ) | 832.9 | ||||||||||||||||
Loss on impairment | — | — | — | — | 2.5 | 2.5 | |||||||||||||||||
Depreciation | 183.2 | 92.4 | 12.4 | — | (5.1 | ) | 282.9 | ||||||||||||||||
General and administrative | — | — | 5.3 | — | 105.5 | 110.8 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | 0.6 | 0.6 | |||||||||||||||||
Operating income (loss) | $ | (85.9 | ) | $ | (53.8 | ) | $ | 27.2 | $ | 21.0 | $ | (147.2 | ) | $ | (238.7 | ) | |||||||
Property and equipment, net | $ | 10,364.7 | $ | 5,055.6 | $ | 656.5 | $ | — | $ | (621.1 | ) | $ | 15,455.7 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 798.1 | $ | 604.0 | $ | 262.2 | $ | 139.0 | $ | (262.2) | $ | 1,541.1 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 681.3 | 561.1 | 171.7 | 87.0 | (171.7) | 1,329.4 | |||||||||||||||||||||||||||||
Loss on impairment | 88.2 | — | — | 2.5 | 90.7 | ||||||||||||||||||||||||||||||
Depreciation | 281.3 | 151.4 | 26.9 | — | (13.7) | 445.9 | |||||||||||||||||||||||||||||
General and administrative | — | — | 13.9 | — | 133.0 | 146.9 | |||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (3.1) | (3.1) | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (252.7) | $ | (108.5) | $ | 49.7 | $ | 52.0 | $ | (215.4) | $ | (474.9) | |||||||||||||||||||||||
Property and equipment, net | $ | 10,187.5 | $ | 5,022.0 | $ | 652.5 | $ | — | $ | (611.3) | $ | 15,250.7 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 785.7 | $ | 475.4 | $ | — | $ | 45.3 | $ | — | $ | 1,306.4 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 564.4 | 390.1 | — | 42.1 | — | 996.6 | |||||||||||||||||||||||||||||
Depreciation | 233.9 | 112.3 | — | — | 10.3 | 356.5 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 79.1 | 79.1 | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (12.6) | $ | (27.0) | $ | — | $ | 3.2 | $ | (89.4) | (125.8) | ||||||||||||||||||||||||
Property and equipment, net | $ | 9,501.7 | $ | 3,190.2 | $ | — | $ | — | $ | 39.7 | 12,731.6 |
Floaters | Jackups | Other (1) | Total Valaris | ARO | |||||||||||||||||||||||||
North & South America | 11 | 8 | — | 19 | — | ||||||||||||||||||||||||
Europe & Mediterranean | 6 | 15 | — | 21 | — | ||||||||||||||||||||||||
Middle East & Africa | 5 | 13 | 9 | 27 | 7 | ||||||||||||||||||||||||
Asia & Pacific Rim | 3 | 7 | — | 10 | — | ||||||||||||||||||||||||
Asia & Pacific Rim (under construction) | 2 | — | — | 2 | — | ||||||||||||||||||||||||
Held for Sale | 1 | 1 | — | 2 | — | ||||||||||||||||||||||||
Total | 28 | 44 | 9 | 81 | 7 |
Floaters | Jackups | Other | Total Valaris | ARO | |||||
North & South America | 7 | 7 | — | 14 | — | ||||
Europe & the Mediterranean | 5 | 14 | — | 19 | — | ||||
Middle East & Africa | 2 | 12 | 9 | 23 | 7 | ||||
Asia & Pacific Rim | 3 | 6 | — | 9 | — | ||||
Asia & Pacific Rim (under construction) | 2 | — | — | 2 | — | ||||
Held-for-sale | 6 | 1 | — | 7 | — | ||||
Total | 25 | 40 | 9 | 74 | 7 |
September 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||
Trade | Trade | $ | 518.7 | $ | 301.7 | $ | 316.7 | $ | 466.4 | |||||||||
Other | Other | 56.1 | 46.4 | 54.9 | 60.3 | |||||||||||||
574.8 | 348.1 | 371.6 | 526.7 | |||||||||||||||
Allowance for doubtful accounts | Allowance for doubtful accounts | (7.8) | (3.4) | (8.3 | ) | (6.0 | ) | |||||||||||
$ | 567.0 | $ | 344.7 | $ | 363.3 | $ | 520.7 |
September 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||
Materials and supplies | Materials and supplies | $ | 347.1 | $ | 268.1 | $ | 303.0 | $ | 340.1 | |||||||||
Prepaid expenses | 81.0 | 13.5 | ||||||||||||||||
Prepaid taxes | Prepaid taxes | 59.2 | 35.0 | 44.5 | 36.2 | |||||||||||||
Deferred costs | Deferred costs | 25.2 | 23.5 | 21.9 | 23.3 | |||||||||||||
Prepaid expenses | 17.3 | 15.2�� | ||||||||||||||||
Assets held-for-sale | Assets held-for-sale | 8.9 | — | 20.9 | 2.3 | |||||||||||||
Other | Other | 29.8 | 19.1 | 29.5 | 31.1 | |||||||||||||
$ | 487.5 | $ | 360.9 | $ | 500.8 | $ | 446.5 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
Tax receivables | $ | 64.4 | $ | 36.3 | ||||||||||||||
Deferred tax assets | 48.6 | 26.6 | ||||||||||||||||
Right-of-use assets | Right-of-use assets | $ | 64.9 | $ | — | 46.2 | 58.1 | |||||||||||
Deferred tax assets | 42.7 | 29.4 | ||||||||||||||||
Tax receivables | 36.6 | 8.4 | ||||||||||||||||
Supplemental executive retirement plan assets | Supplemental executive retirement plan assets | 25.1 | 27.2 | 22.3 | 26.0 | |||||||||||||
Deferred costs | 8.4 | 7.1 | ||||||||||||||||
Intangible assets | Intangible assets | 13.4 | 2.5 | 3.8 | 11.9 | |||||||||||||
Deferred costs | 10.5 | 21.5 | ||||||||||||||||
Other | Other | 11.6 | 8.8 | 16.5 | 22.3 | |||||||||||||
$ | 204.8 | $ | 97.8 | $ | 210.2 | $ | 188.3 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
Accrued interest | $ | 157.2 | $ | 115.2 | ||||||||||||||
Personnel costs | Personnel costs | $ | 117.9 | $ | 82.5 | 97.9 | 134.4 | |||||||||||
Accrued interest | 99.0 | 100.6 | ||||||||||||||||
Income and other taxes payable | Income and other taxes payable | 65.3 | 36.9 | 65.9 | 61.2 | |||||||||||||
Pension and other post-retirement benefits | 34.1 | — | ||||||||||||||||
Deferred revenue | Deferred revenue | 24.6 | 56.9 | 31.5 | 30.0 | |||||||||||||
Lease liabilities | Lease liabilities | 23.4 | — | 16.8 | 21.1 | |||||||||||||
Derivative liabilities | Derivative liabilities | 7.8 | 10.9 | 4.2 | .9 | |||||||||||||
Accrued rig holding costs | 7.2 | 14.3 | ||||||||||||||||
Settlement of legal dispute | — | 20.3 | ||||||||||||||||
Other | Other | 28.4 | 15.9 | 24.6 | 34.6 | |||||||||||||
$ | 407.7 | $ | 318.0 | $ | 398.1 | $ | 417.7 |
September 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||
Unrecognized tax benefits (inclusive of interest and penalties) | Unrecognized tax benefits (inclusive of interest and penalties) | $ | 313.5 | $ | 177.0 | $ | 240.1 | $ | 323.1 | |||||||||
Pension and other post-retirement benefits | Pension and other post-retirement benefits | 194.5 | — | 230.3 | 246.7 | |||||||||||||
Intangible liabilities | 50.8 | 52.1 | ||||||||||||||||
Lease liabilities | 44.1 | 51.8 | ||||||||||||||||
Deferred tax liabilities | Deferred tax liabilities | 88.4 | 70.7 | 37.1 | 99.0 | |||||||||||||
Lease liabilities | 53.5 | — | ||||||||||||||||
Intangible liabilities | 52.7 | 53.5 | ||||||||||||||||
Supplemental executive retirement plan liabilities | Supplemental executive retirement plan liabilities | 25.6 | 28.1 | 22.7 | 26.7 | |||||||||||||
Personnel costs | Personnel costs | 21.0 | 25.1 | 15.1 | 24.5 | |||||||||||||
Deferred revenue | Deferred revenue | 11.7 | 20.5 | 11.2 | 9.7 | |||||||||||||
Deferred rent | — | 11.7 | ||||||||||||||||
Other | Other | 37.3 | 9.4 | 41.8 | 33.8 | |||||||||||||
$ | 798.2 | $ | 396.0 | $ | 693.2 | $ | 867.4 |
September 30, 2019 | December 31, 2018 | |||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
Pension and other post-retirement benefits | $ | (21.7 | ) | $ | (21.7 | ) | ||||||||||||
Derivative instruments | Derivative instruments | $ | 13.6 | $ | 12.6 | 3.5 | 22.6 | |||||||||||
Currency translation adjustment | Currency translation adjustment | 7.0 | 7.3 | 6.7 | 7.1 | |||||||||||||
Other | Other | (1.7) | (1.7) | (1.8 | ) | (1.8 | ) | |||||||||||
$ | 18.9 | $ | 18.2 | $ | (13.3 | ) | $ | 6.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net periodic pension (cost) income, excluding service cost | $ | 3.1 | $ | 1.7 | $ | 6.1 | $ | 1.7 | |||||||
Currency translation adjustments | (1.2 | ) | (2.8 | ) | 2.6 | (3.1 | ) | ||||||||
Gain on bargain purchase and measurement period adjustments | — | 712.8 | (6.3 | ) | 712.8 | ||||||||||
Other income (expense) | 3.2 | (8.0 | ) | 3.2 | (5.4 | ) | |||||||||
$ | 5.1 | $ | 703.7 | $ | 5.6 | $ | 706.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Saudi Aramco(1) | 16 | % | 11 | % | 12 | % | 10 | % | |||||||||||||||||||||||||||
Total(2) | 15 | % | 14 | % | 15 | % | 14 | % | |||||||||||||||||||||||||||
BP(3) | 10 | % | 5 | % | 8 | % | 7 | % | |||||||||||||||||||||||||||
INPEX(4) | 7 | % | 10 | % | 7 | % | 7 | % | |||||||||||||||||||||||||||
Other | 52 | % | 60 | % | 58 | % | 62 | % | |||||||||||||||||||||||||||
84 | % | 89 | % | 88 | % | 90 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Woodside Energy(1) | 12 | % | 4 | % | 7 | % | 4 | % | |||
BP(2) | 11 | % | 9 | % | 9 | % | 8 | % | |||
Saudi Aramco(3) | 9 | % | 9 | % | 9 | % | 10 | % | |||
Total(4) | 5 | % | 13 | % | 11 | % | 15 | % | |||
Other | 63 | % | 65 | % | 64 | % | 63 | % | |||
100 | % | 100 | % | 100 | % | 100 | % |
(1) | During the three and six months ended June 30, 2020 and 2019, all revenues were attributable to our Floaters segment. |
(2) | During the three-month period ended June 30, 2020, 17% of the revenues provided by BP were attributable to our Jackups segment, 39% of the revenues were attributable to our Floaters segment and the remaining were attributable to our managed rigs. During the six-month period ended June 30, 2020, 20% of the revenues |
(3) | During the three and six months ended June 30, 2020 and 2019, all revenues were attributable to our Jackups segment. |
(4) | During the three and six months ended June 30, 2020, 56% and 82% of revenues provided by Total were attributable to the Floaters segment and the remaining were attributable to the Jackup segment. During the three and six months ended June 30, 2019, 90% and 95% of revenues provided by Total were attributable to the Floaters segment and the remaining were attributable to the Jackup segment. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Saudi Arabia(1) | $ | 90.3 | $ | 49.0 | $ | 226.9 | $ | 131.8 | |||||||||||||||||||||||||||
U.S. Gulf of Mexico(2) | 83.1 | 59.3 | 231.2 | 172.4 | |||||||||||||||||||||||||||||||
Angola(3) | 72.1 | 76.2 | 210.8 | 209.5 | |||||||||||||||||||||||||||||||
United Kingdom(4) | 59.6 | 55.4 | 157.2 | 155.7 | |||||||||||||||||||||||||||||||
Australia(5) | 51.6 | 75.1 | 189.0 | 207.7 | |||||||||||||||||||||||||||||||
Other | 194.6 | 115.9 | 526.0 | 429.3 | |||||||||||||||||||||||||||||||
$ | 551.3 | $ | 430.9 | $ | 1,541.1 | $ | 1,306.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Australia(1) | $ | 72.3 | $ | 70.0 | $ | 98.3 | $ | 137.3 | |||||||
U.S. Gulf of Mexico(2) | 66.6 | 93.4 | 145.3 | 148.1 | |||||||||||
Saudi Arabia(3) | 57.3 | 83.2 | 141.2 | 136.6 | |||||||||||
United Kingdom(4) | 52.8 | 54.2 | 105.3 | 97.6 | |||||||||||
Norway(4) | 46.5 | 9.7 | 87.5 | 9.7 | |||||||||||
Angola(5) | 1.7 | 68.1 | 63.2 | 138.7 | |||||||||||
Other | 91.6 | 205.3 | 204.6 | 321.8 | |||||||||||
$ | 388.8 | $ | 583.9 | $ | 845.4 | $ | 989.8 |
(1) | During the three months ended June 30, 2020 and 2019, 100% and 94% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment. |
(2) | During the three months ended June 30, 2020, 66% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 6%were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs. During the six months ended June 30, 2020, 61% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 12% were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs. |
(3) | During the three and six months ended June 30, 2020, 62% and 57% of the revenues earned in Saudi Arabia, respectively, were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. |
(4) | During the three and six months ended June 30, 2020 and 2019, all revenues earned in the United Kingdom and Norway were attributable to our Jackups segment. |
(5) | During the three months ended June 30, 2020, all of the revenues earned in Angola were attributable to our Jackup segment. During the three months ended June 30, 2019, 90% of the revenues earned in Angola, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
OPERATING REVENUES | $ | 15.7 | $ | 53.0 | $ | — | $ | 588.8 | $ | (106.2) | $ | 551.3 | |||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 19.3 | 45.3 | — | 538.1 | (106.2) | 496.5 | |||||||||||||||||||||||||||||
Loss on impairment | — | — | — | 88.2 | — | 88.2 | |||||||||||||||||||||||||||||
Depreciation | — | 7.7 | — | 155.3 | — | 163.0 | |||||||||||||||||||||||||||||
General and administrative | 9.7 | .1 | — | 26.3 | — | 36.1 | |||||||||||||||||||||||||||||
Total operating expenses | 29.0 | 53.1 | — | 807.9 | (106.2) | 783.8 | |||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | (3.7) | — | (3.7) | |||||||||||||||||||||||||||||
OPERATING LOSS | (13.3) | (.1) | — | (222.8) | — | (236.2) | |||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | 94.7 | (5.6) | (20.2) | (33.0) | 4.3 | 40.2 | |||||||||||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 81.4 | (5.7) | (20.2) | (255.8) | 4.3 | (196.0) | |||||||||||||||||||||||||||||
INCOME TAX PROVISION | — | (18.4) | — | 19.9 | — | 1.5 | |||||||||||||||||||||||||||||
EQUITY LOSSES IN AFFILIATES, NET OF TAX | (278.5) | (40.2) | (68.0) | — | 386.7 | — | |||||||||||||||||||||||||||||
NET LOSS | (197.1) | (27.5) | (88.2) | (275.7) | 391.0 | (197.5) | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | .4 | — | .4 | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ | (197.1) | $ | (27.5) | $ | (88.2) | $ | (275.3) | $ | 391.0 | $ | (197.1) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING REVENUES | $ | 17.6 | $ | 49.7 | $ | — | $ | 445.7 | $ | (124.2 | ) | $ | 388.8 | ||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 35.6 | 52.6 | — | 406.7 | (124.2 | ) | 370.7 | ||||||||||||||||
Loss on impairment | — | — | — | 838.0 | — | 838.0 | |||||||||||||||||
Depreciation | — | 4.7 | — | 126.8 | — | 131.5 | |||||||||||||||||
General and administrative | 13.5 | 13.3 | — | 35.8 | — | 62.6 | |||||||||||||||||
Total operating expenses | 49.1 | 70.6 | — | 1,407.3 | (124.2 | ) | 1,402.8 | ||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | (5.2 | ) | — | (5.2 | ) | |||||||||||||||
OPERATING LOSS | (31.5 | ) | (20.9 | ) | — | (966.8 | ) | — | (1,019.2 | ) | |||||||||||||
OTHER INCOME (EXPENSE), NET | (129.6 | ) | (0.4 | ) | (18.3 | ) | 38.4 | 4.5 | (105.4 | ) | |||||||||||||
LOSS BEFORE INCOME TAXES | (161.1 | ) | (21.3 | ) | (18.3 | ) | (928.4 | ) | 4.5 | (1,124.6 | ) | ||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES | — | (88.4 | ) | — | 72.6 | — | (15.8 | ) | |||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (946.3 | ) | (50.0 | ) | 9.3 | — | 987.0 | — | |||||||||||||||
NET INCOME (LOSS) | (1,107.4 | ) | 17.1 | (9.0 | ) | (1,001.0 | ) | 991.5 | (1,108.8 | ) | |||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | 1.4 | — | 1.4 | |||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (1,107.4 | ) | $ | 17.1 | $ | (9.0 | ) | $ | (999.6 | ) | $ | 991.5 | $ | (1,107.4 | ) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
OPERATING REVENUES | $ | 12.1 | $ | 40.7 | $ | — | $ | 459.2 | $ | (81.1) | $ | 430.9 | |||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 15.2 | 36.4 | — | 356.6 | (81.1) | 327.1 | |||||||||||||||||||||||||||||
Depreciation | — | 3.6 | — | 117.0 | — | 120.6 | |||||||||||||||||||||||||||||
General and administrative | 10.5 | 1.9 | — | 12.7 | — | 25.1 | |||||||||||||||||||||||||||||
OPERATING LOSS | (13.6) | (1.2) | — | (27.1) | — | (41.9) | |||||||||||||||||||||||||||||
OTHER EXPENSE, NET | (.6) | (32.6) | (19.5) | (29.0) | 4.0 | (77.7) | |||||||||||||||||||||||||||||
LOSS BEFORE INCOME TAXES | (14.2) | (33.8) | (19.5) | (56.1) | 4.0 | (119.6) | |||||||||||||||||||||||||||||
INCOME TAX PROVISION | — | 9.5 | — | 13.8 | — | 23.3 | |||||||||||||||||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (130.8) | 28.2 | 23.1 | — | 79.5 | — | |||||||||||||||||||||||||||||
NET INCOME (LOSS) | (145.0) | (15.1) | 3.6 | (69.9) | 83.5 | (142.9) | |||||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (2.1) | — | (2.1) | |||||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (145.0) | $ | (15.1) | $ | 3.6 | $ | (72.0) | $ | 83.5 | $ | (145.0) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
OPERATING REVENUES | $ | 47.0 | $ | 128.6 | $ | — | $ | 1,627.1 | $ | (261.6) | $ | 1,541.1 | |||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 49.3 | 112.8 | — | 1,428.9 | (261.6) | 1,329.4 | |||||||||||||||||||||||||||||
Loss on impairment | — | — | — | 90.7 | — | 90.7 | |||||||||||||||||||||||||||||
Depreciation | — | 15.4 | — | 430.5 | — | 445.9 | |||||||||||||||||||||||||||||
General and administrative | 71.0 | .3 | — | 75.6 | — | 146.9 | |||||||||||||||||||||||||||||
Total operating expenses | 120.3 | 128.5 | — | 2,025.7 | (261.6) | 2,012.9 | |||||||||||||||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | (3.1) | — | (3.1) | |||||||||||||||||||||||||||||
OPERATING INCOME (LOSS) | (73.3) | 0.1 | — | (401.7) | — | (474.9) | |||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | 773.5 | (36.6) | (61.0) | (126.3) | 12.7 | 562.3 | |||||||||||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 700.2 | (36.5) | (61.0) | (528.0) | 12.7 | 87.4 | |||||||||||||||||||||||||||||
INCOME TAX PROVISION | — | 10.6 | — | 55.0 | — | 65.6 | |||||||||||||||||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (682.2) | 35.1 | (14.9) | — | 662.0 | — | |||||||||||||||||||||||||||||
NET INCOME (LOSS) | 18.0 | (12.0) | (75.9) | (583.0) | 674.7 | 21.8 | |||||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (3.8) | — | (3.8) | |||||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 18.0 | $ | (12.0) | $ | (75.9) | $ | (586.8) | $ | 674.7 | $ | 18.0 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING REVENUES | $ | 19.9 | $ | 36.1 | $ | — | $ | 607.9 | $ | (80.0 | ) | $ | 583.9 | ||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 18.3 | 31.8 | — | 530.2 | (80.0 | ) | 500.3 | ||||||||||||||||
Loss on impairment | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||
Depreciation | — | 4.0 | — | 153.9 | — | 157.9 | |||||||||||||||||
General and administrative | 46.4 | .1 | — | 34.7 | — | 81.2 | |||||||||||||||||
Total operating expenses | 64.7 | 35.9 | — | 721.3 | (80.0 | ) | 741.9 | ||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | .6 | — | .6 | |||||||||||||||||
OPERATING INCOME (LOSS) | (44.8 | ) | .2 | — | (112.8 | ) | — | (157.4 | ) | ||||||||||||||
OTHER INCOME (EXPENSE), NET | 694.9 | (15.6 | ) | (20.3 | ) | (66.0 | ) | 4.3 | 597.3 | ||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 650.1 | (15.4 | ) | (20.3 | ) | (178.8 | ) | 4.3 | 439.9 | ||||||||||||||
PROVISION FOR INCOME TAXES | — | 12.4 | — | 20.2 | — | 32.6 | |||||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (244.6 | ) | 43.2 | 27.0 | — | 174.4 | — | ||||||||||||||||
NET INCOME (LOSS) | 405.5 | 15.4 | 6.7 | (199.0 | ) | 178.7 | 407.3 | ||||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (1.8 | ) | — | (1.8 | ) | |||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 405.5 | $ | 15.4 | $ | 6.7 | $ | (200.8 | ) | $ | 178.7 | $ | 405.5 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
OPERATING REVENUES | $ | 36.7 | $ | 120.8 | $ | — | $ | 1,387.0 | $ | (238.1) | $ | 1,306.4 | |||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 41.6 | 109.2 | — | 1,083.9 | (238.1) | 996.6 | |||||||||||||||||||||||||||||
Depreciation | — | 10.6 | — | 345.9 | — | 356.5 | |||||||||||||||||||||||||||||
General and administrative | 31.0 | 2.2 | — | 45.9 | — | 79.1 | |||||||||||||||||||||||||||||
OPERATING LOSS | (35.9) | (1.2) | — | (88.7) | — | (125.8) | |||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | (0.1) | (101.1) | (69.5) | (85.9) | 23.4 | (233.2) | |||||||||||||||||||||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (36.0) | (102.3) | (69.5) | (174.6) | 23.4 | (359.0) | |||||||||||||||||||||||||||||
INCOME TAX PROVISION | — | 32.4 | — | 34.0 | — | 66.4 | |||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS, NET | — | — | — | (8.1) | — | (8.1) | |||||||||||||||||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (400.1) | 77.7 | 69.1 | — | 253.3 | — | |||||||||||||||||||||||||||||
NET LOSS | (436.1) | (57.0) | (0.4) | (216.7) | 276.7 | (433.5) | |||||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (2.6) | — | (2.6) | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ | (436.1) | $ | (57.0) | $ | (.4) | $ | (219.3) | $ | 276.7 | $ | (436.1) |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2020 (In millions) (Unaudited) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING REVENUES | $ | 34.9 | $ | 96.7 | $ | — | $ | 939.0 | $ | (225.2 | ) | $ | 845.4 | ||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 56.2 | 95.7 | — | 920.0 | (225.2 | ) | 846.7 | ||||||||||||||||
Loss on impairment | — | — | — | 3,646.2 | — | 3,646.2 | |||||||||||||||||
Depreciation | — | 9.3 | — | 286.7 | — | 296.0 | |||||||||||||||||
General and administrative | 33.7 | 24.8 | — | 57.5 | — | 116.0 | |||||||||||||||||
Total operating expenses | 89.9 | 129.8 | — | 4,910.4 | (225.2 | ) | 4,904.9 | ||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | (11.5 | ) | — | (11.5 | ) | |||||||||||||||
OPERATING LOSS | (55.0 | ) | (33.1 | ) | — | (3,982.9 | ) | — | (4,071.0 | ) | |||||||||||||
OTHER INCOME (EXPENSE), NET | 215.5 | (.2 | ) | (37.8 | ) | (399.7 | ) | 8.9 | (213.3 | ) | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 160.5 | (33.3 | ) | (37.8 | ) | (4,382.6 | ) | 8.9 | (4,284.3 | ) | |||||||||||||
BENEFIT FOR INCOME TAXES | — | (100.0 | ) | — | (67.8 | ) | — | (167.8 | ) | ||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (4,274.2 | ) | (134.6 | ) | 14.9 | — | 4,393.9 | — | |||||||||||||||
NET LOSS | (4,113.7 | ) | (67.9 | ) | (22.9 | ) | (4,314.8 | ) | 4,402.8 | (4,116.5 | ) | ||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | 2.8 | — | 2.8 | |||||||||||||||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ | (4,113.7 | ) | $ | (67.9 | ) | $ | (22.9 | ) | $ | (4,312.0 | ) | $ | 4,402.8 | $ | (4,113.7 | ) |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2019 (In millions) (Unaudited) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING REVENUES | $ | 31.3 | $ | 75.6 | $ | — | $ | 1,038.3 | $ | (155.4 | ) | $ | 989.8 | ||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 30.0 | 67.5 | — | 890.8 | (155.4 | ) | 832.9 | ||||||||||||||||
Loss on impairment | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||
Depreciation | — | 7.7 | — | 275.2 | — | 282.9 | |||||||||||||||||
General and administrative | 61.3 | .2 | — | 49.3 | — | 110.8 | |||||||||||||||||
Total operating expenses | 91.3 | 75.4 | — | 1,217.8 | (155.4 | ) | 1,229.1 | ||||||||||||||||
EQUITY IN EARNINGS OF ARO | — | — | — | .6 | — | .6 | |||||||||||||||||
OPERATING INCOME (LOSS) | (60.0 | ) | .2 | — | (178.9 | ) | — | (238.7 | ) | ||||||||||||||
OTHER INCOME (EXPENSE), NET | 678.8 | (31.0 | ) | (40.8 | ) | (93.3 | ) | 8.4 | 522.1 | ||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 618.8 | (30.8 | ) | (40.8 | ) | (272.2 | ) | 8.4 | 283.4 | ||||||||||||||
PROVISION FOR INCOME TAXES | — | 29.0 | — | 35.1 | — | 64.1 | |||||||||||||||||
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX | (403.7 | ) | 75.3 | 53.1 | — | 275.3 | — | ||||||||||||||||
NET INCOME (LOSS) | 215.1 | 15.5 | 12.3 | (307.3 | ) | 283.7 | 219.3 | ||||||||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (4.2 | ) | — | (4.2 | ) | |||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 215.1 | $ | 15.5 | $ | 12.3 | $ | (311.5 | ) | $ | 283.7 | $ | 215.1 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
NET LOSS | $ | (197.1) | $ | (27.5) | $ | (88.2) | $ | (275.7) | $ | 391.0 | $ | (197.5) | |||||||||||||||||||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||||||||||||||||||||
Net change in derivative fair value | — | (5.7) | — | — | — | (5.7) | |||||||||||||||||||||||||||||
Reclassification of net losses on derivative instruments from other comprehensive income into net income | — | 4.9 | — | — | — | 4.9 | |||||||||||||||||||||||||||||
Other | — | — | — | (.2) | — | (.2) | |||||||||||||||||||||||||||||
NET OTHER COMPREHENSIVE LOSS | — | (.8) | — | (.2) | — | (1.0) | |||||||||||||||||||||||||||||
COMPREHENSIVE LOSS | (197.1) | (28.3) | (88.2) | (275.9) | 391.0 | (198.5) | |||||||||||||||||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | .4 | — | .4 | |||||||||||||||||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ | (197.1) | $ | (28.3) | $ | (88.2) | $ | (275.5) | $ | 391.0 | $ | (198.1) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
NET INCOME (LOSS) | $ | (1,107.4 | ) | $ | 17.1 | $ | (9.0 | ) | $ | (1,001.0 | ) | $ | 991.5 | $ | (1,108.8 | ) | |||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||||||||
Net change in derivative fair value | — | 4.8 | — | — | — | 4.8 | |||||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss | — | (10.9 | ) | — | — | — | (10.9 | ) | |||||||||||||||
NET OTHER COMPREHENSIVE LOSS | — | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | (1,107.4 | ) | 11.0 | (9.0 | ) | (1,001.0 | ) | 991.5 | (1,114.9 | ) | |||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | 1.4 | — | 1.4 | |||||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (1,107.4 | ) | $ | 11.0 | $ | (9.0 | ) | $ | (999.6 | ) | $ | 991.5 | $ | (1,113.5 | ) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
NET INCOME (LOSS) | $ | 405.5 | $ | 15.4 | $ | 6.7 | $ | (199.0 | ) | $ | 178.7 | $ | 407.3 | ||||||||||
OTHER COMPREHENSIVE INCOME, NET | |||||||||||||||||||||||
Net change in derivative fair value | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||
Reclassification of net losses on derivative instruments from other comprehensive income to net income (loss) | — | 1.8 | — | — | — | 1.8 | |||||||||||||||||
NET OTHER COMPREHENSIVE INCOME | — | .2 | — | — | — | .2 | |||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | 405.5 | 15.6 | 6.7 | (199.0 | ) | 178.7 | 407.5 | ||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (1.8 | ) | — | (1.8 | ) | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 405.5 | $ | 15.6 | $ | 6.7 | $ | (200.8 | ) | $ | 178.7 | $ | 405.7 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (145.0) | $ | (15.1) | $ | 3.6 | $ | (69.9) | $ | 83.5 | $ | (142.9) | |||||||||||||||||||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||||||||||||||||||||
Net change in derivative fair value | — | (1.9) | — | — | — | (1.9) | |||||||||||||||||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive income into net loss | — | .7 | — | — | — | .7 | |||||||||||||||||||||||||||||
Other | — | — | — | (.1) | — | (.1) | |||||||||||||||||||||||||||||
NET OTHER COMPREHENSIVE LOSS | — | (1.2) | — | (.1) | — | (1.3) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | (145.0) | (16.3) | 3.6 | (70.0) | 83.5 | (144.2) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (2.1) | — | (2.1) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | (145.0) | $ | (16.3) | $ | 3.6 | $ | (72.1) | $ | 83.5 | $ | (146.3) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
NET LOSS | $ | (4,113.7 | ) | $ | (67.9 | ) | $ | (22.9 | ) | $ | (4,314.8 | ) | $ | 4,402.8 | $ | (4,116.5 | ) | ||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||||||||
Net change in derivative fair value | — | (8.1 | ) | — | — | — | (8.1 | ) | |||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss | — | (11.0 | ) | — | — | — | (11.0 | ) | |||||||||||||||
Other | — | — | — | (.4 | ) | — | (.4 | ) | |||||||||||||||
NET OTHER COMPREHENSIVE LOSS | — | (19.1 | ) | — | (.4 | ) | — | (19.5 | ) | ||||||||||||||
COMPREHENSIVE LOSS | (4,113.7 | ) | (87.0 | ) | (22.9 | ) | (4,315.2 | ) | 4,402.8 | (4,136.0 | ) | ||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | 2.8 | — | 2.8 | |||||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ | (4,113.7 | ) | $ | (87.0 | ) | $ | (22.9 | ) | $ | (4,312.4 | ) | $ | 4,402.8 | $ | (4,133.2 | ) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
NET INCOME (LOSS) | $ | 215.1 | $ | 15.5 | $ | 12.3 | $ | (307.3 | ) | $ | 283.7 | $ | 219.3 | ||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET | |||||||||||||||||||||||
Net change in derivative fair value | — | (1.6 | ) | — | — | — | (1.6 | ) | |||||||||||||||
Reclassification of net losses on derivative instruments from other comprehensive income (loss) to net income (loss) | — | 3.4 | — | — | — | 3.4 | |||||||||||||||||
Other | — | — | — | (.1 | ) | — | (.1 | ) | |||||||||||||||
NET OTHER COMPREHENSIVE INCOME (LOSS) | — | 1.8 | — | (.1 | ) | — | 1.7 | ||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | 215.1 | 17.3 | 12.3 | (307.4 | ) | 283.7 | 221.0 | ||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (4.2 | ) | — | (4.2 | ) | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 215.1 | $ | 17.3 | $ | 12.3 | $ | (311.6 | ) | $ | 283.7 | $ | 216.8 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | 18.0 | $ | (12.0) | $ | (75.9) | $ | (583.0) | $ | 674.7 | $ | 21.8 | |||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET | |||||||||||||||||||||||||||||||||||
Net change in derivative fair value | — | (7.3) | — | — | — | (7.3) | |||||||||||||||||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive income (loss) to net income (loss) | — | 8.3 | — | — | — | 8.3 | |||||||||||||||||||||||||||||
Other | — | — | — | (.3) | — | (.3) | |||||||||||||||||||||||||||||
NET OTHER COMPREHENSIVE INCOME (LOSS) | — | 1.0 | — | (.3) | — | .7 | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | 18.0 | (11.0) | (75.9) | (583.3) | 674.7 | 22.5 | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (3.8) | — | (3.8) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ | 18.0 | $ | (11.0) | $ | (75.9) | $ | (587.1) | $ | 674.7 | $ | 18.7 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2020 (In millions) (Unaudited) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | 156.5 | $ | — | $ | — | $ | 45.5 | $ | — | $ | 202.0 | |||||||||||
Accounts receivable, net | .2 | 25.7 | — | 337.4 | — | 363.3 | |||||||||||||||||
Accounts receivable from affiliates | 4,334.8 | 201.2 | 1.4 | 1,224.7 | (5,762.1 | ) | — | ||||||||||||||||
Other current assets | .5 | 53.6 | — | 446.7 | — | 500.8 | |||||||||||||||||
Total current assets | 4,492.0 | 280.5 | 1.4 | 2,054.3 | (5,762.1 | ) | 1,066.1 | ||||||||||||||||
PROPERTY AND EQUIPMENT, AT COST | 1.1 | 113.6 | — | 13,105.6 | — | 13,220.3 | |||||||||||||||||
Less accumulated depreciation | 1.1 | 93.4 | — | 1,933.2 | — | 2,027.7 | |||||||||||||||||
Property and equipment, net | — | 20.2 | — | 11,172.4 | — | 11,192.6 | |||||||||||||||||
LONG - TERM NOTES RECEIVABLE FROM ARO | — | — | — | 452.8 | — | 452.8 | |||||||||||||||||
INVESTMENT IN ARO | — | — | — | 117.2 | — | 117.2 | |||||||||||||||||
DUE FROM AFFILIATES | 1,593.3 | 217.5 | 38.9 | 4,680.8 | (6,530.5 | ) | — | ||||||||||||||||
INVESTMENTS IN AFFILIATES | 9,166.5 | 654.2 | 1,239.8 | (11,060.5 | ) | — | |||||||||||||||||
OTHER ASSETS | 1.1 | 20.4 | — | 188.7 | — | 210.2 | |||||||||||||||||
$ | 15,252.9 | $ | 1,192.8 | $ | 1,280.1 | $ | 18,666.2 | $ | (23,353.1 | ) | $ | 13,038.9 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 141.1 | $ | 16.6 | $ | 12.2 | $ | 380.1 | $ | — | $ | 550.0 | |||||||||||
Accounts payable to affiliates | 1,117.0 | 237.2 | 802.2 | 3,605.7 | (5,762.1 | ) | — | ||||||||||||||||
Current maturities of long-term debt | 2,394.8 | 123.3 | — | — | 2,518.1 | ||||||||||||||||||
Total current liabilities | 3,652.9 | 253.8 | 937.7 | 3,985.8 | (5,762.1 | ) | 3,068.1 | ||||||||||||||||
DUE TO AFFILIATES | 3,534.0 | 505.6 | 641.2 | 1,849.7 | (6,530.5 | ) | — | ||||||||||||||||
LONG-TERM DEBT | 2,880.6 | 111.7 | 372.3 | 727.6 | 4,092.2 | ||||||||||||||||||
OTHER LIABILITIES | 247.6 | 445.6 | — | 693.2 | |||||||||||||||||||
VALARIS SHAREHOLDERS' EQUITY (DEFICIT) | 5,185.4 | 74.1 | (671.1 | ) | 11,662.5 | (11,060.5 | ) | 5,190.4 | |||||||||||||||
NONCONTROLLING INTERESTS | — | — | — | (5.0 | ) | — | (5.0 | ) | |||||||||||||||
Total equity (deficit) | 5,185.4 | 74.1 | (671.1 | ) | 11,657.5 | (11,060.5 | ) | 5,185.4 | |||||||||||||||
$ | 15,252.9 | $ | 1,192.8 | $ | 1,280.1 | $ | 18,666.2 | $ | (23,353.1 | ) | $ | 13,038.9 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | 21.5 | $ | — | $ | — | $ | 75.7 | $ | — | $ | 97.2 | |||||||||||
Accounts receivable, net | .2 | 19.7 | — | 500.8 | — | 520.7 | |||||||||||||||||
Accounts receivable from affiliates | 4,031.4 | 386.0 | — | 897.2 | (5,314.6 | ) | — | ||||||||||||||||
Other current assets | .6 | 11.6 | — | 434.3 | — | 446.5 | |||||||||||||||||
Total current assets | 4,053.7 | 417.3 | — | 1,908.0 | (5,314.6 | ) | 1,064.4 | ||||||||||||||||
PROPERTY AND EQUIPMENT, AT COST | 1.9 | 108.8 | — | 18,283.1 | — | 18,393.8 | |||||||||||||||||
Less accumulated depreciation | 1.9 | 84.7 | — | 3,210.3 | — | 3,296.9 | |||||||||||||||||
Property and equipment, net | — | 24.1 | — | 15,072.8 | — | 15,096.9 | |||||||||||||||||
LONG-TERM NOTES RECEIVABLE FROM ARO | — | — | — | 452.9 | — | 452.9 | |||||||||||||||||
INVESTMENT IN ARO | — | — | — | 128.7 | — | 128.7 | |||||||||||||||||
DUE FROM AFFILIATES | 73.8 | — | 38.9 | 1,775.7 | (1,888.4 | ) | — | ||||||||||||||||
INVESTMENTS IN AFFILIATES | 9,778.5 | 788.8 | 1,224.9 | — | (11,792.2 | ) | — | ||||||||||||||||
OTHER ASSETS | 7.9 | 3.8 | — | 182.6 | (6.0 | ) | 188.3 | ||||||||||||||||
$ | 13,913.9 | $ | 1,234.0 | $ | 1,263.8 | $ | 19,520.7 | $ | (19,001.2 | ) | $ | 16,931.2 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 99.2 | $ | 29.3 | $ | 12.2 | $ | 565.2 | $ | — | $ | 705.9 | |||||||||||
Accounts payable to affiliates | 818.8 | 147.8 | 815.1 | 3,532.9 | (5,314.6 | ) | — | ||||||||||||||||
Current maturities of long - term debt | — | — | 124.8 | — | — | 124.8 | |||||||||||||||||
Total current liabilities | 918.0 | 177.1 | 952.1 | 4,098.1 | (5,314.6 | ) | 830.7 | ||||||||||||||||
DUE TO AFFILIATES | 710.3 | 478.8 | 586.6 | 112.7 | (1,888.4 | ) | — | ||||||||||||||||
LONG-TERM DEBT | 2,990.6 | 111.7 | 373.3 | 2,447.9 | — | 5,923.5 | |||||||||||||||||
OTHER LIABILITIES | (14.6 | ) | 90.6 | — | 797.4 | (6.0 | ) | 867.4 | |||||||||||||||
VALARIS SHAREHOLDERS' EQUITY (DEFICIT) | 9,309.6 | 375.8 | (648.2 | ) | 12,065.9 | (11,792.2 | ) | 9,310.9 | |||||||||||||||
NONCONTROLLING INTERESTS | — | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||||
Total equity (deficit) | 9,309.6 | 375.8 | (648.2 | ) | 12,064.6 | (11,792.2 | ) | 9,309.6 | |||||||||||||||
$ | 13,913.9 | $ | 1,234.0 | $ | 1,263.8 | $ | 19,520.7 | $ | (19,001.2 | ) | $ | 16,931.2 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2020 (In millions) (Unaudited) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (203.1 | ) | $ | 149.5 | $ | (40.3 | ) | $ | (287.2 | ) | $ | — | $ | (381.1 | ) | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||
Additions to property and equipment | — | — | — | (67.1 | ) | — | (67.1 | ) | |||||||||||||||
Proceeds from disposition of assets | — | — | — | 13.8 | — | 13.8 | |||||||||||||||||
Net cash used in investing activities | — | — | — | (53.3 | ) | — | (53.3 | ) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||
Borrowings on credit facility | 566.0 | — | — | — | — | 566.0 | |||||||||||||||||
Advances from (to) affiliates | (202.9 | ) | (149.5 | ) | 40.3 | 312.1 | — | — | |||||||||||||||
Repayments of credit facility borrowings | (15.0 | ) | — | — | — | — | (15.0 | ) | |||||||||||||||
Reduction of long -term borrowings | (9.7 | ) | — | — | — | — | (9.7 | ) | |||||||||||||||
Other | (.3 | ) | — | — | (1.6 | ) | — | (1.9 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 338.1 | (149.5 | ) | 40.3 | 310.5 | — | 539.4 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (.2 | ) | (.2 | ) | ||||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 135.0 | — | — | (30.2 | ) | — | 104.8 | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 21.5 | — | — | 75.7 | — | 97.2 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 156.5 | $ | — | $ | — | $ | 45.5 | $ | — | $ | 202.0 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (In millions) (Unaudited) | |||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||||
Net cash used in operating activities | $ | (79.9 | ) | $ | (117.5 | ) | $ | (68.6 | ) | $ | (27.4 | ) | $ | — | $ | (293.4 | ) | ||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||
Rowan cash acquired | — | — | — | 931.9 | — | 931.9 | |||||||||||||||||
Maturities of short-term investments | 339.0 | — | — | — | — | 339.0 | |||||||||||||||||
Purchases of short-term investments | (145.0 | ) | — | — | — | — | (145.0 | ) | |||||||||||||||
Additions to property and equipment | — | — | — | (134.8 | ) | — | (134.8 | ) | |||||||||||||||
Other | 2.5 | — | — | 2.0 | — | 4.5 | |||||||||||||||||
Net cash provided by investing activities | 196.5 | — | — | 799.1 | — | 995.6 | |||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||
Debt solicitation fees | — | — | — | (8.7 | ) | — | (8.7 | ) | |||||||||||||||
Cash dividends paid | (4.5 | ) | — | — | — | — | (4.5 | ) | |||||||||||||||
Repurchase of common shares | (4.2 | ) | — | — | — | — | (4.2 | ) | |||||||||||||||
Advances from (to) affiliates | 174.5 | 117.5 | 68.6 | (360.6 | ) | — | — | ||||||||||||||||
Other | (0.5 | ) | — | — | — | — | (0.5 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 165.3 | 117.5 | 68.6 | (369.3 | ) | — | (17.9 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (.3 | ) | — | (.3 | ) | |||||||||||||||
INCREASE IN CASH AND CASH EQUIVALENTS | 281.9 | — | — | 402.1 | — | 684.0 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 199.8 | — | 2.7 | 72.6 | — | 275.1 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 481.7 | $ | — | $ | 2.7 | $ | 474.7 | $ | — | $ | 959.1 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | ||||||||||||||||||||||||||||||
NET LOSS | $ | (436.1) | $ | (57.0) | $ | (.4) | $ | (216.7) | $ | 276.7 | $ | (433.5) | |||||||||||||||||||||||
OTHER COMPREHENSIVE LOSS, NET | |||||||||||||||||||||||||||||||||||
Net change in derivative fair value | — | (7.6) | — | — | — | (7.6) | |||||||||||||||||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive loss into net loss | — | (2.2) | — | — | — | (2.2) | |||||||||||||||||||||||||||||
Other | — | — | — | (.4) | — | (.4) | |||||||||||||||||||||||||||||
NET OTHER COMPREHENSIVE LOSS | — | (9.8) | — | (.4) | — | (10.2) | |||||||||||||||||||||||||||||
COMPREHENSIVE LOSS | (436.1) | (66.8) | (.4) | (217.1) | 276.7 | (443.7) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | (2.6) | — | (2.6) | |||||||||||||||||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ | (436.1) | $ | (66.8) | $ | (.4) | $ | (219.7) | $ | 276.7 | $ | (446.3) |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | |||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 72.5 | $ | — | $ | — | $ | 57.0 | $ | — | $ | 129.5 | ||||||||||||||||||||||||||||||||
Short-term investments | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | 2.0 | 25.4 | — | 539.6 | — | 567.0 | ||||||||||||||||||||||||||||||||||||||
Accounts receivable from affiliates | 3,282.0 | 372.2 | 2.0 | 280.5 | (3,936.7) | — | ||||||||||||||||||||||||||||||||||||||
Other | — | 8.9 | — | 478.6 | — | 487.5 | ||||||||||||||||||||||||||||||||||||||
Total current assets | 3,356.5 | 406.5 | 2.0 | 1,355.7 | (3,936.7) | 1,184.0 | ||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, AT COST | 1.8 | 123.2 | — | 18,267.9 | — | 18,392.9 | ||||||||||||||||||||||||||||||||||||||
Less accumulated depreciation | 1.8 | 82.8 | — | 3,057.6 | — | 3,142.2 | ||||||||||||||||||||||||||||||||||||||
Property and equipment, net | — | 40.4 | — | 15,210.3 | — | 15,250.7 | ||||||||||||||||||||||||||||||||||||||
LONG-TERM NOTES RECEIVABLE FROM ARO | — | — | — | 452.9 | — | 452.9 | ||||||||||||||||||||||||||||||||||||||
INVESTMENT IN ARO | — | — | — | 138.2 | — | 138.2 | ||||||||||||||||||||||||||||||||||||||
DUE FROM AFFILIATES | 1,100.0 | — | 38.9 | 2,590.3 | (3,729.2) | — | ||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN AFFILIATES | 9,934.2 | 776.1 | 1,184.9 | — | (11,895.2) | — | ||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | 1.5 | — | — | 203.3 | — | 204.8 | ||||||||||||||||||||||||||||||||||||||
$ | 14,392.2 | $ | 1,223.0 | $ | 1,225.8 | $ | 19,950.7 | $ | (19,561.1) | $ | 17,230.6 | |||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 81.6 | $ | 22.1 | $ | 4.7 | $ | 625.7 | $ | — | $ | 734.1 | ||||||||||||||||||||||||||||||||
Accounts payable to affiliates | 213.7 | 112.9 | 796.8 | 2,813.3 | (3,936.7) | — | ||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | — | — | 125.5 | — | — | 125.5 | ||||||||||||||||||||||||||||||||||||||
Total current liabilities | 295.3 | 135.0 | 927.0 | 3,439.0 | (3,936.7) | 859.6 | ||||||||||||||||||||||||||||||||||||||
DUE TO AFFILIATES | 1,454.3 | 542.4 | 593.6 | 1,138.9 | (3,729.2) | — | ||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | 3,122.7 | 111.7 | 373.6 | 2,434.3 | — | 6,042.3 | ||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES | (10.6) | 56.0 | — | 752.8 | — | 798.2 | ||||||||||||||||||||||||||||||||||||||
VALARIS SHAREHOLDERS' EQUITY (DEFICIT) | 9,530.5 | 377.9 | (668.4) | 12,186.6 | (11,895.2) | 9,531.4 | ||||||||||||||||||||||||||||||||||||||
NONCONTROLLING INTERESTS | — | — | — | (.9) | — | (.9) | ||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | 9,530.5 | 377.9 | (668.4) | 12,185.7 | (11,895.2) | 9,530.5 | ||||||||||||||||||||||||||||||||||||||
$ | 14,392.2 | $ | 1,223.0 | $ | 1,225.8 | $ | 19,950.7 | $ | (19,561.1) | $ | 17,230.6 |
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-Guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | |||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 199.8 | $ | — | $ | 2.7 | $ | 72.6 | $ | — | $ | 275.1 | ||||||||||||||||||||||||||||||||
Short-term investments | 329.0 | — | — | — | — | 329.0 | ||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | 7.3 | 25.4 | — | 312.0 | — | 344.7 | ||||||||||||||||||||||||||||||||||||||
Accounts receivable from affiliates | 1,861.2 | 171.4 | — | 131.7 | (2,164.3) | — | ||||||||||||||||||||||||||||||||||||||
Other | .6 | 6.0 | — | 354.3 | — | 360.9 | ||||||||||||||||||||||||||||||||||||||
Total current assets | 2,397.9 | 202.8 | 2.7 | 870.6 | (2,164.3) | 1,309.7 | ||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, AT COST | 1.8 | 125.2 | — | 15,390.0 | — | 15,517.0 | ||||||||||||||||||||||||||||||||||||||
Less accumulated depreciation | 1.8 | 91.3 | — | 2,807.7 | — | 2,900.8 | ||||||||||||||||||||||||||||||||||||||
Property and equipment, net | — | 33.9 | — | 12,582.3 | — | 12,616.2 | ||||||||||||||||||||||||||||||||||||||
DUE FROM AFFILIATES | 2,413.8 | 234.5 | 125.0 | 2,715.1 | (5,488.4) | — | ||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN AFFILIATES | 8,522.6 | 3,713.7 | 1,199.9 | — | (13,436.2) | — | ||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | 8.1 | — | — | 89.7 | — | 97.8 | ||||||||||||||||||||||||||||||||||||||
$ | 13,342.4 | $ | 4,184.9 | $ | 1,327.6 | $ | 16,257.7 | $ | (21,088.9) | $ | 14,023.7 | |||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 85.3 | $ | 32.0 | $ | 12.7 | $ | 398.5 | $ | — | $ | 528.5 | ||||||||||||||||||||||||||||||||
Accounts payable to affiliates | 59.7 | 139.5 | 38.2 | 1,926.9 | (2,164.3) | — | ||||||||||||||||||||||||||||||||||||||
Total current liabilities | 145.0 | 171.5 | 50.9 | 2,325.4 | (2,164.3) | 528.5 | ||||||||||||||||||||||||||||||||||||||
DUE TO AFFILIATES | 1,432.0 | 1,226.9 | 1,366.5 | 1,463.0 | (5,488.4) | — | ||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | 3,676.5 | 149.3 | 502.6 | 682.0 | — | 5,010.4 | ||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES | 0.1 | 64.3 | — | 331.6 | — | 396.0 | ||||||||||||||||||||||||||||||||||||||
VALARIS SHAREHOLDERS' EQUITY (DEFICIT) | 8,088.8 | 2,572.9 | (592.4) | 11,458.3 | (13,436.2) | 8,091.4 | ||||||||||||||||||||||||||||||||||||||
NONCONTROLLING INTERESTS | — | — | — | (2.6) | — | (2.6) | ||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | 8,088.8 | 2,572.9 | (592.4) | 11,455.7 | (13,436.2) | 8,088.8 | ||||||||||||||||||||||||||||||||||||||
$ | 13,342.4 | $ | 4,184.9 | $ | 1,327.6 | $ | 16,257.7 | $ | (21,088.9) | $ | 14,023.7 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2019 (In millions) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used in operating activities of continuing operations | $ | (125.2) | $ | (82.3) | $ | (98.0) | $ | (122.0) | $ | — | $ | (427.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rowan cash acquired | — | — | — | 931.9 | — | 931.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of short-term investments | 474.0 | — | — | — | — | 474.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of short-term investments | (145.0) | — | — | — | — | (145.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | — | — | — | (174.2) | — | (174.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 4.9 | — | 4.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by investing activities of continuing operations | 329.0 | — | — | 762.6 | — | 1,091.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction of long-term borrowings | (536.6) | (30.4) | — | (361.1) | — | (928.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | (4.5) | — | — | — | — | (4.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings on credit facility | 175.0 | — | — | — | — | 175.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of credit facility borrowings | (34.4) | — | — | — | — | (34.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt solicitation fee | — | — | — | (9.4) | — | (9.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (5.3) | — | — | (2.4) | — | (7.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from (to) affiliates | 74.7 | 112.7 | 95.3 | (282.7) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (331.1) | 82.3 | 95.3 | (655.6) | — | (809.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by discontinued operations | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (.6) | (.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (127.3) | — | (2.7) | (15.6) | — | (145.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 199.8 | — | 2.7 | 72.6 | — | 275.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 72.5 | $ | — | $ | — | $ | 57.0 | $ | — | $ | 129.5 |
VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2018 (In millions) (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valaris plc | ENSCO International Incorporated | Pride International LLC | Other Non-guarantor Subsidiaries of Valaris | Consolidating Adjustments | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 19.7 | $ | (257.2) | $ | (85.1) | $ | 240.4 | $ | — | $ | (82.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of short-term investments | 675.0 | — | — | — | — | 675.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of short-term investments | (669.0) | — | — | — | — | (669.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | — | — | — | (378.7) | — | (378.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of affiliate debt | 479.0 | — | — | — | (479.0) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of affiliate debt | (552.5) | — | — | — | 552.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 10.0 | — | 10.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used in investing activities of continuing operations | (67.5) | — | — | (368.7) | 73.5 | (362.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of senior notes | 1,000.0 | — | — | — | — | 1,000.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction of long-term borrowings | (159.9) | — | (537.8) | — | (73.5) | (771.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid | (13.4) | — | — | — | — | (13.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | (17.0) | — | — | — | — | (17.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from affiliates | (798.5) | 257.2 | 603.2 | (61.9) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (1.9) | — | — | (2.8) | — | (4.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 9.3 | 257.2 | 65.4 | (64.7) | (73.5) | 193.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by discontinued operations | — | — | — | 2.5 | — | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (.7) | — | (.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (38.5) | — | (19.7) | (191.2) | — | (249.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 185.2 | — | 25.6 | 234.6 | — | 445.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 146.7 | $ | — | $ | 5.9 | $ | 43.4 | $ | — | $ | 196.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Revenues | $ | 551.3 | $ | 430.9 | $ | 1,541.1 | $ | 1,306.4 | |||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 496.5 | 327.1 | 1,329.4 | 996.6 | |||||||||||||||||||||||||||||||
Loss on impairment | 88.2 | — | 90.7 | — | |||||||||||||||||||||||||||||||
Depreciation | 163.0 | 120.6 | 445.9 | 356.5 | |||||||||||||||||||||||||||||||
General and administrative | 36.1 | 25.1 | 146.9 | 79.1 | |||||||||||||||||||||||||||||||
Total operating expenses | 783.8 | 472.8 | 2,012.9 | 1,432.2 | |||||||||||||||||||||||||||||||
Equity in earnings of ARO | (3.7) | — | (3.1) | — | |||||||||||||||||||||||||||||||
Operating loss | (236.2) | (41.9) | (474.9) | (125.8) | |||||||||||||||||||||||||||||||
Other income (expense), net | 40.2 | (77.7) | 562.3 | (233.2) | |||||||||||||||||||||||||||||||
Provision for income taxes | 1.5 | 23.3 | 65.6 | 66.4 | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations | (197.5) | (142.9) | 21.8 | (425.4) | |||||||||||||||||||||||||||||||
Loss from discontinued operations, net | — | — | — | (8.1) | |||||||||||||||||||||||||||||||
Net income (loss) | (197.5) | (142.9) | 21.8 | (433.5) | |||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | .4 | (2.1) | (3.8) | (2.6) | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Valaris | $ | (197.1) | $ | (145.0) | $ | 18.0 | $ | (436.1) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019(1) | 2020 | 2019(1) | ||||||||||||
Revenues | $ | 388.8 | $ | 583.9 | $ | 845.4 | $ | 989.8 | |||||||
Operating expenses | |||||||||||||||
Contract drilling (exclusive of depreciation) | 370.7 | 500.3 | 846.7 | 832.9 | |||||||||||
Loss on impairment | 838.0 | 2.5 | 3,646.2 | 2.5 | |||||||||||
Depreciation | 131.5 | 157.9 | 296.0 | 282.9 | |||||||||||
General and administrative | 62.6 | 81.2 | 116.0 | 110.8 | |||||||||||
Total operating expenses | 1,402.8 | 741.9 | 4,904.9 | 1,229.1 | |||||||||||
Equity in earnings of ARO | (5.2 | ) | .6 | (11.5 | ) | .6 | |||||||||
Operating loss | (1,019.2 | ) | (157.4 | ) | (4,071.0 | ) | (238.7 | ) | |||||||
Other income (expense), net | (105.4 | ) | 597.3 | (213.3 | ) | 522.1 | |||||||||
Provision (benefit) for income taxes | (15.8 | ) | 32.6 | (167.8 | ) | 64.1 | |||||||||
Net income (loss) | (1,108.8 | ) | 407.3 | (4,116.5 | ) | 219.3 | |||||||||
Net (income) loss attributable to noncontrolling interests | 1.4 | (1.8 | ) | 2.8 | (4.2 | ) | |||||||||
Net income (loss) attributable to Valaris | $ | (1,107.4 | ) | $ | 405.5 | $ | (4,113.7 | ) | $ | 215.1 |
(1) | The three months and six months ended June 30, 2019 include results of the Rowan transaction from April 11, 2019 through June 30, 2019. |
2019 | 2018 | ||||||||||
Floaters(1)(5) | 25 | 22 | |||||||||
Jackups(2)(3)(4)(5) | 43 | 34 | |||||||||
Other(6) | 9 | — | |||||||||
Under construction(4) | 2 | 3 | |||||||||
Held-for-sale(5) | 2 | — | |||||||||
Total Valaris | 81 | 59 | |||||||||
ARO(7) | 7 | — | |||||||||
2020 | 2019 | ||
Floaters(1) | 17 | 26 | |
Jackups(2) | 39 | 44 | |
Other | 9 | 9 | |
Under construction | 2 | 2 | |
Held-for-sale(1)(2) | 7 | — | |
Total Valaris | 74 | 81 | |
ARO(3) | 7 | 7 |
(1) | During the fourth quarter of 2019, we sold VALARIS 5006. During the first and second quarters of 2020, we sold VALARIS 6002 and VALARIS 5004, respectively. During the second quarter of 2020, we classified VALARIS 8500, VALARIS 8501, VALARIS 8502, VALARIS DS-3, VALARIS DS-5 and VALARIS DS-6 as held-for-sale. |
(2) | During the fourth quarter of 2019, we sold VALARIS JU-96 and in the first quarter of 2020, we sold VALARIS JU-68. During the second quarter of 2020, we classified VALARIS JU-105 as held-for-sale and sold VALARIS JU-70 and VALARIS JU-71. |
(3) | This represents the seven rigs owned by ARO. |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Rig Utilization(1) | Rig Utilization(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Floaters | Floaters | 48 | % | 46 | % | 48 | % | 47 | % | 32 | % | 53 | % | 35 | % | 48 | % | ||||||||||||||||||||||||||||||||||
Jackups | Jackups | 65 | % | 66 | % | 67 | % | 64 | % | 53 | % | 69 | % | 57 | % | 69 | % | ||||||||||||||||||||||||||||||||||
Other (2) | Other (2) | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 82 | % | 100 | % | 85 | % | ||||||||||||||||||||||||||||||||||
Total Valaris | Total Valaris | 64 | % | 59 | % | 64 | % | 59 | % | 53 | % | 65 | % | 56 | % | 63 | % | ||||||||||||||||||||||||||||||||||
ARO | ARO | 89 | % | — | 93 | % | — | 97 | % | 97 | % | 93 | % | 97 | % | ||||||||||||||||||||||||||||||||||||
Average Day Rates(3) | Average Day Rates(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Floaters | Floaters | $ | 215,157 | $ | 239,196 | $ | 223,041 | $ | 245,617 | $ | 152,968 | $ | 218,339 | $ | 176,338 | $ | 227,415 | ||||||||||||||||||||||||||||||||||
Jackups | Jackups | 77,888 | 79,921 | 76,418 | 77,365 | 83,698 | 78,229 | 82,515 | 75,608 | ||||||||||||||||||||||||||||||||||||||||||
Other (2) | Other (2) | 47,553 | 80,458 | 52,271 | 81,097 | 37,368 | 50,347 | 39,856 | 56,618 | ||||||||||||||||||||||||||||||||||||||||||
Total Valaris | Total Valaris | $ | 106,157 | $ | 132,348 | $ | 110,765 | $ | 132,169 | $ | 83,912 | $ | 110,063 | $ | 89,668 | $ | 113,510 | ||||||||||||||||||||||||||||||||||
ARO | ARO | $ | 109,862 | $ | — | $ | 111,717 | $ | — | $ | 104,346 | $ | 112,906 | $ | 106,518 | $ | 112,906 |
(1) | Rig utilization is derived by dividing the number of days under contract by the number of days in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with early contract terminations, compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example, when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract. |
(2) | Includes our two management services contracts and our nine rigs leased to ARO under bareboat charter contracts. |
(3) | Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump-sum revenues and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain mobilizations, demobilizations and shipyard contracts. |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 269.8 | $ | 217.8 | $ | 138.4 | $ | 63.7 | $ | (138.4) | $ | 551.3 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 250.3 | 213.5 | 92.7 | 32.7 | (92.7) | 496.5 | |||||||||||||||||||||||||||||
Loss on impairment | 88.2 | — | — | — | — | 88.2 | |||||||||||||||||||||||||||||
Depreciation | 98.1 | 59.0 | 14.6 | — | (8.7) | 163.0 | |||||||||||||||||||||||||||||
General and administrative | — | — | 8.8 | — | 27.3 | 36.1 | |||||||||||||||||||||||||||||
Equity in earnings of ARO | (3.7) | (3.7) | |||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (166.8) | $ | (54.7) | $ | 22.3 | $ | 31.0 | $ | (68.0) | $ | (236.2) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 163.6 | $ | 186.3 | $ | 146.0 | $ | 38.9 | $ | (146.0 | ) | $ | 388.8 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 170.8 | 182.7 | 112.5 | 17.2 | (112.5 | ) | 370.7 | ||||||||||||||||
Loss on impairment | 831.9 | .4 | — | 5.7 | — | 838.0 | |||||||||||||||||
Depreciation | 62.0 | 52.8 | 13.3 | 11.2 | (7.8 | ) | 131.5 | ||||||||||||||||
General and administrative | — | — | 7.1 | — | 55.5 | 62.6 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (5.2 | ) | (5.2 | ) | |||||||||||||||
Operating income (loss) | $ | (901.1 | ) | $ | (49.6 | ) | $ | 13.1 | $ | 4.8 | $ | (86.4 | ) | $ | (1,019.2 | ) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 241.8 | $ | 173.3 | $ | — | $ | 15.8 | $ | — | $ | 430.9 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 175.6 | 136.4 | — | 15.1 | — | 327.1 | |||||||||||||||||||||||||||||
Depreciation | 77.8 | 39.3 | — | — | 3.5 | 120.6 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 25.1 | 25.1 | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (11.6) | $ | (2.4) | $ | — | $ | 0.7 | $ | (28.6) | $ | (41.9) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 295.6 | $ | 229.2 | $ | 123.8 | $ | 59.1 | $ | (123.8 | ) | $ | 583.9 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 249.2 | 212.2 | 78.9 | 38.9 | (78.9 | ) | 500.3 | ||||||||||||||||
Loss on impairment | — | — | — | — | 2.5 | 2.5 | |||||||||||||||||
Depreciation | 98.4 | 55.5 | 12.4 | — | (8.4 | ) | 157.9 | ||||||||||||||||
General and administrative | — | — | 5.3 | — | 75.9 | 81.2 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | .6 | .6 | |||||||||||||||||
Operating income (loss) | $ | (52.0 | ) | $ | (38.5 | ) | $ | 27.2 | $ | 20.2 | $ | (114.3 | ) | $ | (157.4 | ) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||||||||||||||
Revenues | $ | 798.1 | $ | 604.0 | $ | 262.2 | $ | 139.0 | $ | (262.2) | $ | 1,541.1 | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 681.3 | 561.1 | 171.7 | 87.0 | (171.7) | 1,329.4 | |||||||||||||||||||||||||||||
Loss on impairment | 88.2 | — | — | 2.5 | 90.7 | ||||||||||||||||||||||||||||||
Depreciation | 281.3 | 151.4 | 26.9 | — | (13.7) | 445.9 | |||||||||||||||||||||||||||||
General and administrative | — | — | 13.9 | — | 133.0 | 146.9 | |||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (3.1) | (3.1) | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (252.7) | $ | (108.5) | $ | 49.7 | $ | 52.0 | $ | (215.4) | $ | (474.9) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | ||||||||||||||||||
Revenues | $ | 343.2 | $ | 399.1 | $ | 286.3 | $ | 103.1 | $ | (286.3 | ) | $ | 845.4 | ||||||||||
Operating expenses | |||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 384.7 | 408.8 | 220.8 | 53.2 | (220.8 | ) | 846.7 | ||||||||||||||||
Loss on impairment | 3,386.2 | 254.3 | — | 5.7 | — | 3,646.2 | |||||||||||||||||
Depreciation | 151.4 | 111.3 | 26.3 | 22.3 | (15.3 | ) | 296.0 | ||||||||||||||||
General and administrative | — | — | 15.4 | — | 100.6 | 116.0 | |||||||||||||||||
Equity in earnings of ARO | — | — | — | — | (11.5 | ) | (11.5 | ) | |||||||||||||||
Operating income (loss) | $ | (3,579.1 | ) | $ | (375.3 | ) | $ | 23.8 | $ | 21.9 | $ | (162.3 | ) | $ | (4,071.0 | ) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | $ | 785.7 | $ | 475.4 | $ | — | $ | 45.3 | $ | — | $ | 1,306.4 | $ | 528.3 | $ | 386.2 | $ | 123.8 | $ | 75.3 | $ | (123.8 | ) | $ | 989.8 | ||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | Contract drilling (exclusive of depreciation) | 564.4 | 390.1 | — | 42.1 | — | 996.6 | 431.0 | 347.6 | 78.9 | 54.3 | (78.9 | ) | 832.9 | ||||||||||||||||||||||||||||||||||||||||||||
Loss on impairment | — | — | — | — | 2.5 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | Depreciation | 233.9 | 112.3 | — | — | 10.3 | 356.5 | 183.2 | 92.4 | 12.4 | — | (5.1 | ) | 282.9 | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative | General and administrative | — | — | — | — | 79.1 | 79.1 | — | — | 5.3 | — | 105.5 | 110.8 | |||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | .6 | .6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | Operating income (loss) | $ | (12.6) | $ | (27.0) | $ | — | $ | 3.2 | $ | (89.4) | $ | (125.8) | $ | (85.9 | ) | $ | (53.8 | ) | $ | 27.2 | $ | 21.0 | $ | (147.2 | ) | $ | (238.7 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest income | $ | 5.7 | $ | 11.9 | $ | 10.5 | $ | 15.4 | |||||||
Interest expense, net: | |||||||||||||||
Interest expense | (116.8 | ) | (126.4 | ) | (230.7 | ) | (213.6 | ) | |||||||
Capitalized interest | .6 | 8.1 | 1.3 | 14.3 | |||||||||||
(116.2 | ) | (118.3 | ) | (229.4 | ) | (199.3 | ) | ||||||||
Other, net | 5.1 | 703.7 | 5.6 | 706.0 | |||||||||||
$ | (105.4 | ) | $ | 597.3 | $ | (213.3 | ) | $ | 522.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Interest income | $ | 6.7 | $ | 3.6 | $ | 22.1 | $ | 10.5 | |||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||
Interest expense | (119.4) | (87.3) | (333.0) | (258.2) | |||||||||||||||||||||||||||||||
Capitalized interest | 5.5 | 15.1 | 19.8 | 44.7 | |||||||||||||||||||||||||||||||
(113.9) | (72.2) | (313.2) | (213.5) | ||||||||||||||||||||||||||||||||
Other, net | 147.4 | (9.1) | 853.4 | (30.2) | |||||||||||||||||||||||||||||||
$ | 40.2 | $ | (77.7) | $ | 562.3 | $ | (233.2) |
June 30, 2020 | December 31, 2019 | |||||||
Cash and cash equivalents | $ | 202.0 | $ | 97.2 | ||||
Available credit facility borrowing capacity | 1,033.4 | 1,622.2 | ||||||
Total liquidity | $ | 1,235.4 | $ | 1,719.4 | ||||
Working capital | $ | (2,002.0 | ) | $ | 233.7 | |||
Current ratio | 0.3 | 1.3 |
2019 | 2018 | ||||||||||
Net cash used in operating activities of continuing operations | $ | (427.5) | $ | (82.2) | |||||||
Capital expenditures | |||||||||||
New rig construction | $ | 46.0 | $ | 309.4 | |||||||
Rig enhancements | 84.4 | 33.6 | |||||||||
Minor upgrades and improvements | 43.8 | 35.7 | |||||||||
$ | 174.2 | $ | 378.7 |
2020 | 2019 | ||||||
Net cash used in operating activities | $ | (381.1 | ) | $ | (293.4 | ) | |
Capital expenditures | |||||||
New rig construction | $ | 2.8 | $ | 40.8 | |||
Rig enhancements | 35.8 | 66.2 | |||||
Minor upgrades and improvements | 28.5 | 27.8 | |||||
$ | 67.1 | $ | 134.8 |
Cumulative Paid(1) | Remaining 2019 | 2020 | 2021 | 2022 | Total Remaining Payments(2) | |||||||||||||||||||||||||||||||||
VALARIS DS-13(3) | $ | — | $ | — | $ | — | $ | 83.9 | $ | — | $ | 83.9 | ||||||||||||||||||||||||||
VALARIS DS-14(3) | 15.0 | — | — | — | 165.0 | 165.0 | ||||||||||||||||||||||||||||||||
$ | 15.0 | $ | — | $ | — | $ | 83.9 | $ | 165.0 | $ | 248.9 |
2020 | 2021 | 2022 | Thereafter | Total(1) | ||||||||||||||||
VALARIS DS-13(2) | $ | — | $ | 83.9 | $ | — | $ | — | $ | 83.9 | ||||||||||
VALARIS DS-14(2) | — | — | 165.0 | — | 165.0 | |||||||||||||||
$ | — | $ | 83.9 | $ | 165.0 | $ | — | $ | 248.9 |
(1) | Total commitments are based on fixed-price shipyard construction contracts, exclusive of our internal costs associated with project management, commissioning and systems integration testing. Total commitments also exclude holding costs and interest. |
(2) | The delivery dates for the VALARIS DS-13 and VALARIS DS-14 are September 30, 2021 and June 30, 2022, respectively. We can elect to request earlier delivery in certain circumstances. The interest rate on the final milestone payments are 7% per annum from October 1, 2019, for the VALARIS DS-13, and from July 1, 2020, for the VALARIS DS-14, until the actual delivery dates. The final milestone payments and applicable interest are due at the delivery dates (or, if accelerated, the actual delivery dates) and are estimated to be approximately $313.3 million in aggregate for both rigs, inclusive of interest, assuming we take delivery on the delivery dates. In lieu of making the final milestone payments, we have the option to take delivery of the rigs and issue a promissory note for each rig to the shipyard owner for the amount due. The promissory notes will bear interest at a rate of 9% per annum with a maturity date of December 31, 2022 and will be secured by a mortgage on each respective rig. The remaining milestone payments for VALARIS DS-13 and VALARIS DS-14 are included in the table above in the period in which we expect to take delivery of the rig. However, we may elect to execute the promissory notes and defer payment until December 2022. If we issue the promissory note to the shipyard owner, we would also be required to provide a guarantee from Valaris plc. |
June 30, 2020 | December 31, 2019 | |||||||
Total debt (1) | $ | 7,066.3 | $ | 6,528.1 | ||||
Total capital (2) | $ | 12,256.7 | $ | 15,839.0 | ||||
Total debt to total capital | 57.7 | % | 41.2 | % |
(1) | Total debt consists of the principal amount outstanding and borrowings on our credit facility. |
(2) | Total capital consists of total debt and Valaris shareholders' equity. |
Maturity Date | |||||
September 30, 2019 | December 31, 2018 | ||||||||||
Total debt (1) | $ | 6,668.7 | $ | 5,161.0 | |||||||
Total capital (2) | $ | 16,200.1 | $ | 13,252.4 | |||||||
Total debt to total capital | 41.2 | % | 38.9 | % |
Aggregate Principal Amount Repurchased | Aggregate Repurchase Price(1) | ||||||||||
4.50% Senior notes due 2024 | $ | 320.0 | $ | 240.0 | |||||||
5.20% Senior notes due 2025 | 335.5 | 250.0 | |||||||||
7.20% Senior notes due 2027 | 37.9 | 29.9 | |||||||||
4.75% Senior notes due 2024 | 79.5 | 61.2 | |||||||||
7.375% Senior notes due 2025 | 139.2 | 109.2 | |||||||||
8.00% Senior notes due 2024 | 39.7 | 33.8 | |||||||||
Total | $ | 951.8 | $ | 724.1 |
Maturity Date | Principal Amount | ||
October 2027 | $ | 275.1 | |
October 2028 | 177.7 | ||
Total | $ | 452.8 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||
Cash and cash equivalents | $ | 129.5 | $ | 275.1 | |||||||||||||
Short-term investments | — | 329.0 | |||||||||||||||
Available credit facility borrowing capacity | 1,481.6 | 2,000.0 | |||||||||||||||
Total liquidity | $ | 1,611.1 | $ | 2,604.1 | |||||||||||||
Working capital | $ | 324.4 | $ | 781.2 | |||||||||||||
Current ratio | 1.4 | 2.5 |
Issuer Purchases of Equity Securities | Issuer Purchases of Equity Securities | Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period | Period | Total Number of Securities Purchased(1) | Average Price Paid per Security | Total Number of Securities Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Securities that May Yet Be Purchased Under Plans or Programs (2) | Total Number of Securities Repurchased(1) | Average Price Paid per Security | Total Number of Securities Repurchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Securities that May Yet Be Repurchased Under Plans or Programs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1 - July 31 | 22,879 | $ | 8.76 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
August 1 - August 31 | 1,473 | $ | 4.93 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 1 - September 30 | 4,500 | $ | 6.23 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 1 - April 30 | 11,824 | $ | 0.48 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
May 1 - May 31 | 20,687 | $ | 0.34 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 1 - June 30 | 242,988 | $ | 0.40 | — | $ | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 28,852 | $ | 8.17 | — | 275,499 | $ | 0.40 | — |
(1) | During the three months ended June 30, 2020, equity securities were repurchased from employees and non-employee directors by an affiliated employee benefit trust in connection with the settlement of income tax withholding obligations arising from the vesting of share awards. Such securities remain available for re-issuance in connection with employee share awards. |
(2) | Our shareholders approved a repurchase program at our annual shareholder meeting held in May 2018. Subject to certain provisions under English law, including the requirement of Valaris plc to have sufficient distributable reserves, we may repurchase up to a maximum of $500.0 million in the aggregate from one or more financial intermediaries under the program, but in no case more than 16.3 million shares. The program terminates in May 2023. As of June 30, 2020, there had been no share repurchases under the repurchase program. Our revolving credit facility prohibits the repurchase of shares for cash, except in certain limited circumstances. |
Exhibit Number | Exhibit | ||||||||||
* 10.2 | |||||||||||
* 10.3 | |||||||||||
* 10.4 | |||||||||||
* 10.5 | |||||||||||
* 10.6 | |||||||||||
10.7 | |||||||||||
* | |||||||||||
* | |||||||||||
* 10.11 | |||||||||||
*15.1 | |||||||||||
*31.1 | |||||||||||
*31.2 | |||||||||||
**32.1 | |||||||||||
**32.2 | |||||||||||
*101.INS | XBRL Instance Document - The | ||||||||||
*101.SCH | XBRL Taxonomy Extension Schema | ||||||||||
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||||||||
*101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||||||||
*101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||||||||
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||||||||
Valaris plc | ||||||||||
Date: | /s/ JONATHAN H. BAKSHT | |||||||||
Jonathan H. Baksht Executive Vice President and Chief Financial Officer (principal financial officer) | ||||||||||
/s/ | ||||||||||
(principal accounting officer) |