Information about Noble-Cayman | Note 17 — Information about Noble-Cayman Guarantees of Registered Securities Noble-Cayman, or one or more wholly-owned subsidiaries of Noble-Cayman, are a co-issuer or full and unconditional guarantor or otherwise obligated as of June 30, 2015 as follows: Notes Issuer (Co-Issuer(s)) Guarantor $350 million 3.45% Senior Notes due 2015 NHIL Noble-Cayman $300 million 3.05% Senior Notes due 2016 NHIL Noble-Cayman $300 million 2.50% Senior Notes due 2017 NHIL Noble-Cayman $250 million 4.00% Senior Notes due 2018 NHIL Noble-Cayman $202 million 7.50% Senior Notes due 2019 NHC Noble-Cayman Noble Drilling Holding, LLC (“NDH”) Noble Drilling Services 6 LLC (“NDS6”) $500 million 4.90% Senior Notes due 2020 NHIL Noble-Cayman $400 million 4.625% Senior Notes due 2021 NHIL Noble-Cayman $400 million 3.95% Senior Notes due 2022 NHIL Noble-Cayman $450 million 5.95% Senior Notes due 2025 NHIL Noble-Cayman $400 million 6.20% Senior Notes due 2040 NHIL Noble-Cayman $400 million 6.05% Senior Notes due 2041 NHIL Noble-Cayman $500 million 5.25% Senior Notes due 2042 NHIL Noble-Cayman $400 million 6.95% Senior Notes due 2045 NHIL Noble-Cayman The following condensed consolidating financial statements of Noble-Cayman, NHC, NDH, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting. NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2015 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total ASSETS Current assets Cash and cash equivalents $ 29 $ — $ 126 $ — $ — $ 244,965 $ — $ 245,120 Accounts receivable — — 16,141 — — 524,282 — 540,423 Taxes receivable — 16,063 281 — — 43,813 — 60,157 Short-term notes receivable from affiliates 125,330 — 1,077,965 — 333,965 171,925 (1,709,185 ) — Accounts receivable from affiliates 693,834 437,455 234,677 1,164,504 121,829 4,258,806 (6,911,105 ) — Prepaid expenses and other current assets 1,436 — 4,961 — — 132,207 — 138,604 Total current assets 820,629 453,518 1,334,151 1,164,504 455,794 5,375,998 (8,620,290 ) 984,304 Property and equipment, at cost — — 2,081,631 — — 12,490,780 — 14,572,411 Accumulated depreciation — — (315,372 ) — — (2,312,354 ) — (2,627,726 ) Property and equipment, net — — 1,766,259 — — 10,178,426 — 11,944,685 Notes receivable from affiliates 3,304,653 — 236,920 1,980,391 5,000 1,583,587 (7,110,551 ) — Investments in affiliates 4,971,977 1,316,576 2,913,930 8,777,006 6,634,018 — (24,613,507 ) — Other assets 6,773 — 6,523 27,668 455 179,345 — 220,764 Total assets $ 9,104,032 $ 1,770,094 $ 6,257,783 $ 11,949,569 $ 7,095,267 $ 17,317,356 $ (40,344,348 ) $ 13,149,753 LIABILITIES AND EQUITY Current liabilities Short-term notes payables from affiliates $ — $ 171,925 $ — $ — $ 371,720 $ 1,165,540 $ (1,709,185 ) $ — Current maturities of long-term debt — — — 350,000 — — — 350,000 Accounts payable — — 7,658 — — 210,408 — 218,066 Accrued payroll and related costs — — 6,412 — — 67,993 — 74,405 Accounts payable to affiliates 717,632 65,849 3,460,644 78,638 23,959 2,564,383 (6,911,105 ) — Taxes payable — — — — — 107,716 — 107,716 Interest payable — — — 75,888 4,412 — — 80,300 Other current liabilities 273 — 7,097 — — 100,197 — 107,567 Total current liabilities 717,905 237,774 3,481,811 504,526 400,091 4,216,237 (8,620,290 ) 938,054 Long-term debt — — — 4,286,846 201,695 — — 4,488,541 Notes payable to affiliates 1,769,064 — 600,874 1,169,181 192,215 3,379,217 (7,110,551 ) — Deferred income taxes — — — — — 104,402 — 104,402 Other liabilities 19,929 — 27,703 — — 257,306 — 304,938 Total liabilities 2,506,898 237,774 4,110,388 5,960,553 794,001 7,957,162 (15,730,841 ) 5,835,935 Commitments and contingencies Total shareholder equity 6,597,134 1,532,320 2,147,395 5,989,016 6,301,266 8,221,330 (24,191,327 ) 6,597,134 Noncontrolling interests — — — — — 1,138,864 (422,180 ) 716,684 Total equity 6,597,134 1,532,320 2,147,395 5,989,016 6,301,266 9,360,194 (24,613,507 ) 7,313,818 Total liabilities and equity $ 9,104,032 $ 1,770,094 $ 6,257,783 $ 11,949,569 $ 7,095,267 $ 17,317,356 $ (40,344,348 ) $ 13,149,753 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total ASSETS Current assets Cash and cash equivalents $ 5 $ — $ 254 $ — $ — $ 65,521 $ — $ 65,780 Accounts receivable — — 37,655 2,336 — 529,105 — 569,096 Taxes receivable — 63,373 752 — — 43,164 — 107,289 Short-term notes receivable from affiliates 123,449 — 1,077,965 — 333,966 171,925 (1,707,305 ) — Accounts receivable from affiliates 2,019,319 374,012 192,771 157,164 125,834 4,191,406 (7,060,506 ) — Prepaid expenses and other current assets 14,274 — 1,764 — — 123,631 — 139,669 Total current assets 2,157,047 437,385 1,311,161 159,500 459,800 5,124,752 (8,767,811 ) 881,834 Property and equipment, at cost — — 2,040,168 — — 12,364,203 — 14,404,371 Accumulated depreciation — — (278,147 ) — — (2,040,073 ) — (2,318,220 ) Property and equipment, net — — 1,762,021 — — 10,324,130 — 12,086,151 Notes receivable from affiliates 3,304,654 — 236,921 1,980,391 5,000 1,581,429 (7,108,395 ) — Investments in affiliates 4,567,335 1,318,239 2,921,452 8,266,444 6,290,918 — (23,364,388 ) — Other assets 2,908 — 6,212 19,826 517 192,791 — 222,254 Total assets $ 10,031,944 $ 1,755,624 $ 6,237,767 $ 10,426,161 $ 6,756,235 $ 17,223,102 $ (39,240,594 ) $ 13,190,239 LIABILITIES AND EQUITY Current liabilities Short-term notes payables from affiliates $ — $ 171,925 $ — $ — $ 371,720 $ 1,163,660 $ (1,707,305 ) $ — Accounts payable 600 — 10,130 — — 250,282 — 261,012 Accrued payroll and related costs — — 7,738 — — 83,749 — 91,487 Accounts payable to affiliates 606,224 63,602 3,513,705 61,982 16,869 2,798,124 (7,060,506 ) — Taxes payable — — — — — 91,471 — 91,471 Interest payable 499 — — 57,053 4,412 — — 61,964 Other current liabilities 15,651 — 13,409 — — 110,890 — 139,950 Total current liabilities 622,974 235,527 3,544,982 119,035 393,001 4,498,176 (8,767,811 ) 645,884 Long-term debt 1,123,495 — — 3,543,830 201,695 — — 4,869,020 Notes payable to affiliates 1,769,068 — 598,715 1,169,180 192,216 3,379,216 (7,108,395 ) — Deferred income taxes — — — — — 120,589 — 120,589 Other liabilities 19,929 — 29,093 — — 286,942 — 335,964 Total liabilities 3,535,466 235,527 4,172,790 4,832,045 786,912 8,284,923 (15,876,206 ) 5,971,457 Commitments and contingencies Total shareholder equity 6,496,478 1,520,097 2,064,977 5,594,116 5,969,323 7,812,656 (22,961,169 ) 6,496,478 Noncontrolling interests — — — — — 1,125,523 (403,219 ) 722,304 Total equity 6,496,478 1,520,097 2,064,977 5,594,116 5,969,323 8,938,179 (23,364,388 ) 7,218,782 Total liabilities and equity $ 10,031,944 $ 1,755,624 $ 6,237,767 $ 10,426,161 $ 6,756,235 $ 17,223,102 $ (39,240,594 ) $ 13,190,239 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2015 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Operating revenues Contract drilling services $ — $ — $ 64,269 $ — $ — $ 755,585 $ (48,547 ) $ 771,307 Reimbursables — — 8,537 — — 13,711 — 22,248 Total operating revenues — — 72,806 — — 769,296 (48,547 ) 793,555 Operating costs and expenses Contract drilling services 2,792 8,302 17,864 23,389 — 315,167 (48,547 ) 318,967 Reimbursables — — 3,299 — — 14,353 — 17,652 Depreciation and amortization — — 20,683 — — 138,114 — 158,797 General and administrative 482 3,672 — 9,045 1 309 — 13,509 Total operating costs and expenses 3,274 11,974 41,846 32,434 1 467,943 (48,547 ) 508,925 Operating income (loss) (3,274 ) (11,974 ) 30,960 (32,434 ) (1 ) 301,353 — 284,630 Other income (expense) Income (loss) of unconsolidated affiliates 187,575 34,898 37,017 248,725 164,049 — (672,264 ) — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax — — — — — — — — Total income (loss) of unconsolidated affiliates 187,575 34,898 37,017 248,725 164,049 — (672,264 ) — Interest expense, net of amounts capitalized (21,133 ) (1,229 ) (3,310 ) (60,552 ) (7,753 ) (14,215 ) 50,727 (57,465 ) Interest income and other, net 3,743 (1 ) 14,275 21,011 1,414 8,384 (50,727 ) (1,901 ) Income from continuing operations before income taxes 166,911 21,694 78,942 176,750 157,709 295,522 (672,264 ) 225,264 Income tax provision — (17,592 ) (1,397 ) — — (20,547 ) — (39,536 ) Net income from continuing operations 166,911 4,102 77,545 176,750 157,709 274,975 (672,264 ) 185,728 Net income from discontinued operations, net of tax — — — — — — — — Net Income 166,911 4,102 77,545 176,750 157,709 274,975 (672,264 ) 185,728 Net income attributable to noncontrolling interests — — — — — (27,360 ) 8,543 (18,817 ) Net income attributable to Noble Corporation 166,911 4,102 77,545 176,750 157,709 247,615 (663,721 ) 166,911 Other comprehensive income, net 5,608 — — — — 5,608 (5,608 ) 5,608 Comprehensive income attributable to Noble Corporation $ 172,519 $ 4,102 $ 77,545 $ 176,750 $ 157,709 $ 253,223 $ (669,329 ) $ 172,519 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2015 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Operating revenues Contract drilling services $ — $ — $ 139,328 $ — $ — $ 1,493,392 $ (82,052 ) $ 1,550,668 Reimbursables — — 10,916 — — 36,313 — 47,229 Total operating revenues — — 150,244 — — 1,529,705 (82,052 ) 1,597,897 Operating costs and expenses Contract drilling services 4,607 16,593 47,242 46,228 — 605,828 (82,052 ) 638,446 Reimbursables — — 4,781 — — 33,028 — 37,809 Depreciation and amortization — — 38,051 — — 274,612 — 312,663 General and administrative 939 7,060 — 17,394 1 323 — 25,717 Total operating costs and expenses 5,546 23,653 90,074 63,622 1 913,791 (82,052 ) 1,014,635 Operating income (loss) (5,546 ) (23,653 ) 60,170 (63,622 ) (1 ) 615,914 — 583,262 Other income (expense) Income (loss) of unconsolidated affiliates 404,301 66,979 92,041 538,483 343,099 — (1,444,903 ) — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax — — — — — — — — Total income (loss) of unconsolidated affiliates 404,301 66,979 92,041 538,483 343,099 — (1,444,903 ) — Interest expense, net of amounts capitalized (45,886 ) (2,248 ) (6,565 ) (108,888 ) (13,969 ) (27,942 ) 98,989 (106,509 ) Interest income and other, net 6,473 4,831 26,987 41,790 2,813 20,642 (98,989 ) 4,547 Income from continuing operations before income taxes 359,342 45,909 172,633 407,763 331,942 608,614 (1,444,903 ) 481,300 Income tax provision — (33,685 ) (1,776 ) — — (47,633 ) — (83,094 ) Net income from continuing operations 359,342 12,224 170,857 407,763 331,942 560,981 (1,444,903 ) 398,206 Net income from discontinued operations, net of tax — — — — — — — — Net Income 359,342 12,224 170,857 407,763 331,942 560,981 (1,444,903 ) 398,206 Net income attributable to noncontrolling interests — — — — — (57,824 ) 18,960 (38,864 ) Net income attributable to Noble Corporation 359,342 12,224 170,857 407,763 331,942 503,157 (1,425,943 ) 359,342 Other comprehensive income, net 245 — — — — 245 (245 ) 245 Comprehensive income attributable to Noble Corporation $ 359,587 $ 12,224 $ 170,857 $ 407,763 $ 331,942 $ 503,402 $ (1,426,188 ) $ 359,587 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2014 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Operating revenues Contract drilling services $ — $ — $ 85,664 $ — $ — $ 725,970 $ (32,266 ) $ 779,368 Reimbursables — — 2,575 — — 21,838 — 24,413 Total operating revenues — — 88,239 — — 747,808 (32,266 ) 803,781 Operating costs and expenses Contract drilling services 2,615 13,267 26,516 35,214 — 317,860 (32,266 ) 363,206 Reimbursables — — 1,662 — — 16,070 — 17,732 Depreciation and amortization — — 15,711 — — 136,531 — 152,242 General and administrative 334 3,156 — 8,263 1 (265 ) — 11,489 Total operating costs and expenses 2,949 16,423 43,889 43,477 1 470,196 (32,266 ) 544,669 Operating income (loss) (2,949 ) (16,423 ) 44,350 (43,477 ) (1 ) 277,612 — 259,112 Other income (expense) Income (loss) of unconsolidated affiliates 184,704 64,955 22,653 164,952 114,022 — (551,286 ) — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax 100,692 28,089 93,520 118,125 4,083 — (344,509 ) — Total income (loss) of unconsolidated affiliates 285,396 93,044 116,173 283,077 118,105 — (895,795 ) — Interest expense, net of amounts capitalized (22,466 ) (736 ) (7,151 ) (39,998 ) (7,955 ) (12,452 ) 54,407 (36,351 ) Interest income and other, net 5,258 — 13,069 21,011 317 13,504 (54,407 ) (1,248 ) Income from continuing operations before income taxes 265,239 75,885 166,441 220,613 110,466 278,664 (895,795 ) 221,513 Income tax provision — (17,194 ) (1,522 ) — (1,547 ) (13,800 ) — (34,063 ) Net income from continuing operations 265,239 58,691 164,919 220,613 108,919 264,864 (895,795 ) 187,450 Net income from discontinued operations, net of tax — (9,860 ) (55 ) — — 110,607 — 100,692 Net Income 265,239 48,831 164,864 220,613 108,919 375,471 (895,795 ) 288,142 Net income attributable to noncontrolling interests — — — — — (33,655 ) 10,752 (22,903 ) Net income attributable to Noble Corporation 265,239 48,831 164,864 220,613 108,919 341,816 (885,043 ) 265,239 Other comprehensive income, net 3,182 — — — — 3,182 (3,182 ) 3,182 Comprehensive income attributable to Noble Corporation $ 268,421 $ 48,831 $ 164,864 $ 220,613 $ 108,919 $ 344,998 $ (888,225 ) $ 268,421 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2014 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Operating revenues Contract drilling services $ — $ — $ 162,617 $ — $ — $ 1,461,912 $ (74,524 ) $ 1,550,005 Reimbursables — — 3,253 — — 45,710 — 48,963 Total operating revenues — — 165,870 — — 1,507,622 (74,524 ) 1,598,968 Operating costs and expenses Contract drilling services 12,686 20,486 61,090 61,330 — 632,715 (74,524 ) 713,783 Reimbursables — — 2,493 — — 36,743 — 39,236 Depreciation and amortization — — 30,345 — — 267,500 — 297,845 General and administrative 907 5,003 — 15,224 1 2,286 — 23,421 Total operating costs and expenses 13,593 25,489 93,928 76,554 1 939,244 (74,524 ) 1,074,285 Operating income (loss) (13,593 ) (25,489 ) 71,942 (76,554 ) (1 ) 568,378 — 524,683 Other income (expense) Income (loss) of unconsolidated affiliates 391,000 110,710 120,767 420,510 284,171 — (1,327,158 ) — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax 214,609 53,067 104,560 181,326 6,125 — (559,687 ) — Total income (loss) of unconsolidated affiliates 605,609 163,777 225,327 601,836 290,296 — (1,886,845 ) — Interest expense, net of amounts capitalized (48,350 ) (963 ) (12,974 ) (86,491 ) (15,904 ) (24,746 ) 112,685 (76,743 ) Interest income and other, net 6,888 — 26,749 46,968 630 28,807 (112,685 ) (2,643 ) Income from continuing operations before income taxes 550,554 137,325 311,044 485,759 275,021 572,439 (1,886,845 ) 445,297 Income tax provision — (38,593 ) (2,206 ) — (1,547 ) (27,187 ) — (69,533 ) Net income from continuing operations 550,554 98,732 308,838 485,759 273,474 545,252 (1,886,845 ) 375,764 Net income from discontinued operations, net of tax — (18,655 ) 6,634 — — 226,630 — 214,609 Net Income 550,554 80,077 315,472 485,759 273,474 771,882 (1,886,845 ) 590,373 Net income attributable to noncontrolling interests — — — — — (63,641 ) 23,822 (39,819 ) Net income attributable to Noble Corporation 550,554 80,077 315,472 485,759 273,474 708,241 (1,863,023 ) 550,554 Other comprehensive income, net 10,900 — — — — 10,900 (10,900 ) 10,900 Comprehensive income attributable to Noble Corporation $ 561,454 $ 80,077 $ 315,472 $ 485,759 $ 273,474 $ 719,141 $ (1,873,923 ) $ 561,454 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2015 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Cash flows from operating activities Net cash from operating activities $ (37,768 ) $ (7,445 ) $ 123,844 $ (117,391 ) $ (11,095 ) $ 802,833 $ — $ 752,978 Cash flows from investing activities Capital expenditures — — (48,227 ) — — (160,464 ) — (208,691 ) Net cash from investing activities — — (48,227 ) — — (160,464 ) — (208,691 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities (1,123,495 ) — — — — — — (1,123,495 ) Issuance of senior notes — — — 1,092,728 — — — 1,092,728 Debt issuance costs on senior notes and credit facilities (6,450 ) — — (9,620 ) — — — (16,070 ) Dividends paid to noncontrolling interests — — — — — (44,484 ) — (44,484 ) Distributions to parent company, net (273,626 ) — — — — — — (273,626 ) Advances (to) from affiliates 1,441,363 7,445 (75,745 ) (965,717 ) 11,095 (418,441 ) — — Net cash from financing activities 37,792 7,445 (75,745 ) 117,391 11,095 (462,925 ) — (364,947 ) Net change in cash and cash equivalents 24 — (128 ) — — 179,444 — 179,340 Cash and cash equivalents, beginning of period 5 — 254 — — 65,521 — 65,780 Cash and cash equivalents, end of period $ 29 $ — $ 126 $ — $ — $ 244,965 $ — $ 245,120 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2014 (in thousands) Noble- NHC NDH NHIL NDS6 Other Non-guarantor Consolidating Total Cash flows from operating activities Net cash from operating activities $ (33,190 ) $ (89,407 ) $ 132,085 $ (120,048 ) $ (16,759 ) $ 1,208,454 $ — $ 1,081,135 Cash flows from investing activities Capital expenditures — — (860,876 ) — — (367,207 ) — (1,228,083 ) Notes receivable from affiliates — — — 273,744 — — (273,744 ) — Net cash from investing activities — — (860,876 ) 273,744 — (367,207 ) (273,744 ) (1,228,083 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities 707,472 — — — — — — 707,472 Repayment of long-term debt — — — (250,000 ) — — — (250,000 ) Debt issuance costs on senior notes and credit facilities (386 ) — — — — — — (386 ) Dividends paid to noncontrolling interests — — — — — (41,910 ) — (41,910 ) Distributions to parent company, net (240,900 ) — — — — — — (240,900 ) Advances (to) from affiliates (159,248 ) 89,407 729,719 96,300 16,759 (772,937 ) — — Notes payable to affiliates (273,744 ) — — — — — 273,744 — Net cash from financing activities 33,194 89,407 729,719 (153,700 ) 16,759 (814,847 ) 273,744 174,276 Net change in cash and cash equivalents 4 — 928 (4 ) — 26,400 — 27,328 Cash and cash equivalents, beginning of period 1 — 402 4 — 109,975 — 110,382 Cash and cash equivalents, end of period $ 5 $ — $ 1,330 $ — $ — $ 136,375 $ — $ 137,710 |