Information about Noble-Cayman | NOBLE CORPORATION PLC AND SUBSIDIARIES NOBLE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data) 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 September 30, 2015 as follows: Issuer Notes (Co-Issuer(s)) Guarantor $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 September 30, 2015 (in thousands) Other Non-guarantor Noble - Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total ASSETS Current assets Cash and cash equivalents $ 4 $ — $ 135 $ — $ — $ 164,101 $ — $ 164,240 Accounts receivable — — 13,816 — — 516,585 — 530,401 Taxes receivable — 12,124 26 — — 54,173 — 66,323 Short-term notes receivable from affiliates — — 119,476 — — 171,925 (291,401 ) — Accounts receivable from affiliates 617,430 451,674 124,763 832,288 67,170 3,256,189 (5,349,514 ) — Prepaid expenses and other current assets 1,756 — 4,857 — — 144,245 — 150,858 Total current assets 619,190 463,798 263,073 832,288 67,170 4,307,218 (5,640,915 ) 911,822 Property and equipment, at cost — — 1,846,298 — — 12,833,307 — 14,679,605 Accumulated depreciation — — (330,361 ) — — (2,456,068 ) — (2,786,429 ) Property and equipment, net — — 1,515,937 — — 10,377,239 — 11,893,176 Notes receivable from affiliates 3,304,653 — 236,921 1,614,802 5,000 1,516,702 (6,678,078 ) — Investments in affiliates 5,306,418 1,413,824 2,973,478 9,384,951 6,951,400 — (26,030,071 ) — Other assets 6,369 — 7,264 26,788 424 159,428 — 200,273 Total assets $ 9,236,630 $ 1,877,622 $ 4,996,673 $ 11,858,829 $ 7,023,994 $ 16,360,587 $ (38,349,064 ) $ 13,005,271 LIABILITIES AND EQUITY Current liabilities Short-term notes payables from affiliates $ — $ 171,925 $ — $ — $ — $ 119,476 $ (291,401 ) $ — Current maturities of long-term debt — — — 299,993 — — — 299,993 Accounts payable — — 5,251 — — 200,187 — 205,438 Accrued payroll and related costs — — 8,004 — — 78,108 — 86,112 Accounts payable to affiliates 837,540 67,191 2,274,884 87,104 5,706 2,077,089 (5,349,514 ) — Taxes payable — 35,743 — — — 116,393 — 152,136 Interest payable — — — 44,292 630 — — 44,922 Other current liabilities 103 — 4,824 — — 99,672 — 104,599 Total current liabilities 837,643 274,859 2,292,963 431,389 6,336 2,690,925 (5,640,915 ) 893,200 Long-term debt — — — 3,987,032 201,695 — — 4,188,727 Notes payable to affiliates 1,545,239 — 460,227 1,169,180 124,216 3,379,216 (6,678,078 ) — Deferred income taxes — — — — — 46,366 — 46,366 Other liabilities 19,929 — 26,361 — — 274,125 — 320,415 Total liabilities 2,402,811 274,859 2,779,551 5,587,601 332,247 6,390,632 (12,318,993 ) 5,448,708 Commitments and contingencies — — — — — — — — Total shareholder equity 6,833,819 1,602,763 2,217,122 6,271,228 6,691,747 8,810,922 (25,593,782 ) 6,833,819 Noncontrolling interests — — — — — 1,159,033 (436,289 ) 722,744 Total equity 6,833,819 1,602,763 2,217,122 6,271,228 6,691,747 9,969,955 (26,030,071 ) 7,556,563 Total liabilities and equity $ 9,236,630 $ 1,877,622 $ 4,996,673 $ 11,858,829 $ 7,023,994 $ 16,360,587 $ (38,349,064 ) $ 13,005,271 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments 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 September 30, 2015 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Operating revenues Contract drilling services $ — $ — $ 37,659 $ — $ — $ 856,145 $ (19,991 ) $ 873,813 Reimbursables — — 4,662 — — 18,196 — 22,858 Total operating revenues — — 42,321 — — 874,341 (19,991 ) 896,671 Operating costs and expenses Contract drilling services 850 3,630 32,370 14,850 — 260,770 (19,991 ) 292,479 Reimbursables — — 8,414 — — 9,369 — 17,783 Depreciation and amortization — — 20,690 — — 139,693 — 160,383 General and administrative 192 1,866 — 7,524 — 794 — 10,376 Total operating costs and expenses 1,042 5,496 61,474 22,374 — 410,626 (19,991 ) 481,021 Operating income (loss) (1,042 ) (5,496 ) (19,153 ) (22,374 ) — 463,715 — 415,650 Other income (expense) Income (loss) of unconsolidated affiliates 334,441 130,794 70,445 344,840 132,616 — (1,013,136 ) — Interest expense, net of amounts capitalized (17,914 ) (1,342 ) (3,204 ) (58,129 ) (7,522 ) (37,611 ) 71,035 (54,687 ) Interest income and other, net 16,052 4 22,837 17,876 2,283 43,049 (71,035 ) 31,066 Income before income taxes 331,537 123,960 70,925 282,213 127,377 469,153 (1,013,136 ) 392,029 Income tax provision — (53,518 ) (1,198 ) — — 12,848 — (41,868 ) Net Income 331,537 70,442 69,727 282,213 127,377 482,001 (1,013,136 ) 350,161 Net income attributable to noncontrolling interests — — — — — (32,733 ) 14,109 (18,624 ) Net income attributable to Noble Corporation 331,537 70,442 69,727 282,213 127,377 449,268 (999,027 ) 331,537 Other comprehensive loss, net (2,859 ) — — — — (2,859 ) 2,859 (2,859 ) Comprehensive income attributable to Noble Corporation $ 328,678 $ 70,442 $ 69,727 $ 282,213 $ 127,377 $ 446,409 $ (996,168 ) $ 328,678 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2015 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Operating revenues Contract drilling services $ — $ — $ 176,987 $ — $ — $ 2,349,537 $ (102,043 ) $ 2,424,481 Reimbursables — — 15,578 — — 54,509 — 70,087 Total operating revenues — — 192,565 — — 2,404,046 (102,043 ) 2,494,568 Operating costs and expenses Contract drilling services 5,457 20,223 79,612 61,078 — 866,598 (102,043 ) 930,925 Reimbursables — — 13,195 — — 42,397 — 55,592 Depreciation and amortization — — 58,741 — — 414,305 — 473,046 General and administrative 1,131 8,926 — 24,918 1 1,117 — 36,093 Total operating costs and expenses 6,588 29,149 151,548 85,996 1 1,324,417 (102,043 ) 1,495,656 Operating income (loss) (6,588 ) (29,149 ) 41,017 (85,996 ) (1 ) 1,079,629 — 998,912 Other income (expense) Income (loss) of unconsolidated affiliates 738,742 197,773 162,486 883,323 475,715 — (2,458,039 ) — Interest expense, net of amounts capitalized (63,800 ) (3,590 ) (9,769 ) (167,017 ) (21,491 ) (65,553 ) 170,024 (161,196 ) Interest income and other, net 22,525 4,835 49,824 59,666 5,096 63,691 (170,024 ) 35,613 Income before income taxes 690,879 169,869 243,558 689,976 459,319 1,077,767 (2,458,039 ) 873,329 Income tax provision — (87,203 ) (2,974 ) — — (34,785 ) — (124,962 ) Net Income 690,879 82,666 240,584 689,976 459,319 1,042,982 (2,458,039 ) 748,367 Net income attributable to noncontrolling interests — — — — — (90,557 ) 33,069 (57,488 ) Net income attributable to Noble Corporation 690,879 82,666 240,584 689,976 459,319 952,425 (2,424,970 ) 690,879 Other comprehensive loss, net (2,614 ) — — — — (2,614 ) 2,614 (2,614 ) Comprehensive income attributable to Noble Corporation $ 688,265 $ 82,666 $ 240,584 $ 689,976 $ 459,319 $ 949,811 $ (2,422,356 ) $ 688,265 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended September 30, 2014 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Operating revenues Contract drilling services $ — $ — $ 81,834 $ — $ — $ 866,699 $ (138,333 ) $ 810,200 Reimbursables — — 1,495 — — 17,100 — 18,595 Other — — — — — 1 — 1 Total operating revenues — — 83,329 — — 883,800 (138,333 ) 828,796 Operating costs and expenses Contract drilling services 3,571 9,239 27,593 25,489 — 456,352 (138,333 ) 383,911 Reimbursables — — 1,112 — — 12,529 — 13,641 Depreciation and amortization — — 16,922 — — 143,333 — 160,255 General and administrative 397 2,348 — 6,530 — 3,782 — 13,057 Total operating costs and expenses 3,968 11,587 45,627 32,019 — 615,996 (138,333 ) 570,864 Operating income (loss) (3,968 ) (11,587 ) 37,702 (32,019 ) — 267,804 — 257,932 Other income (expense) Income (loss) of unconsolidated affiliates (2,716,832 ) (20,299 ) (130,556 ) 283,190 182,350 — 2,402,147 — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax 10,413 (3,921 ) (10,045 ) 2,021 124 — 1,408 — Total income (loss) of unconsolidated affiliates (2,706,419 ) (24,220 ) (140,601 ) 285,211 182,474 — 2,403,555 — Interest expense, net of amounts capitalized (22,352 ) (1,042 ) (8,729 ) (40,423 ) (10,573 ) (3,109,995 ) 3,155,363 (37,751 ) Interest income and other, net 2,905,973 — 208,241 21,240 1,249 22,445 (3,155,363 ) 3,785 Income from continuing operations before income taxes 173,234 (36,849 ) 96,613 234,009 173,150 (2,819,746 ) 2,403,555 223,966 Income tax provision — (11,352 ) (766 ) — — (28,556 ) — (40,674 ) Net income from continuing operations 173,234 (48,201 ) 95,847 234,009 173,150 (2,848,302 ) 2,403,555 183,292 Net income from discontinued operations, net of tax — — — — — 10,413 — 10,413 Net Income 173,234 (48,201 ) 95,847 234,009 173,150 (2,837,889 ) 2,403,555 193,705 Net income attributable to noncontrolling interests — — — — — (31,612 ) 11,141 (20,471 ) Net income attributable to Noble Corporation 173,234 (48,201 ) 95,847 234,009 173,150 (2,869,501 ) 2,414,696 173,234 Other comprehensive loss, net (8,982 ) — — — — (8,982 ) 8,982 (8,982 ) Comprehensive income attributable to Noble Corporation $ 164,252 $ (48,201 ) $ 95,847 $ 234,009 $ 173,150 $ (2,878,483 ) $ 2,423,678 $ 164,252 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2014 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Operating revenues Contract drilling services $ — $ — $ 244,451 $ — $ — $ 2,328,611 $ (212,857 ) $ 2,360,205 Reimbursables — — 4,748 — — 62,810 — 67,558 Other — — — — — 1 — 1 Total operating revenues — — 249,199 — — 2,391,422 (212,857 ) 2,427,764 Operating costs and expenses Contract drilling services 16,257 29,725 88,683 86,819 — 1,089,067 (212,857 ) 1,097,694 Reimbursables — — 3,605 — — 49,272 — 52,877 Depreciation and amortization — — 47,267 — — 410,833 — 458,100 General and administrative 1,304 7,351 — 21,754 1 6,068 — 36,478 Total operating costs and expenses 17,561 37,076 139,555 108,573 1 1,555,240 (212,857 ) 1,645,149 Operating income (loss) (17,561 ) (37,076 ) 109,644 (108,573 ) (1 ) 836,182 — 782,615 Other income (expense) Income (loss) of unconsolidated affiliates (2,325,832 ) 90,411 (9,789 ) 703,700 466,521 — 1,074,989 — Income (loss) of unconsolidated affiliates - discontinued operations, net of tax 225,022 49,146 94,515 183,347 6,249 — (558,279 ) — Total income (loss) of unconsolidated affiliates (2,100,810 ) 139,557 84,726 887,047 472,770 — 516,710 — Interest expense, net of amounts capitalized (70,702 ) (2,005 ) (21,703 ) (126,914 ) (26,477 ) (3,134,741 ) 3,268,048 (114,494 ) Interest income and other, net 2,912,861 — 234,990 68,208 1,879 51,252 (3,268,048 ) 1,142 Income from continuing operations before income taxes 723,788 100,476 407,657 719,768 448,171 (2,247,307 ) 516,710 669,263 Income tax provision — (49,945 ) (2,972 ) — (1,547 ) (55,743 ) — (110,207 ) Net income from continuing operations 723,788 50,531 404,685 719,768 446,624 (2,303,050 ) 516,710 559,056 Net income from discontinued operations, net of tax — (18,655 ) 6,634 — — 237,043 — 225,022 Net Income 723,788 31,876 411,319 719,768 446,624 (2,066,007 ) 516,710 784,078 Net income attributable to noncontrolling interests — — — — — (95,253 ) 34,963 (60,290 ) Net income attributable to Noble Corporation 723,788 31,876 411,319 719,768 446,624 (2,161,260 ) 551,673 723,788 Other comprehensive income, net 1,918 — — — — 1,918 (1,918 ) 1,918 Comprehensive income attributable to Noble Corporation $ 725,706 $ 31,876 $ 411,319 $ 719,768 $ 446,624 $ (2,159,342 ) $ 549,755 $ 725,706 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2015 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Cash flows from operating activities Net cash from operating activities $ (33,578 ) $ (28,115 ) $ 141,329 $ (210,734 ) $ (20,085 ) $ 1,397,280 $ — $ 1,246,097 Cash flows from investing activities Capital expenditures — — (80,743 ) — — (242,745 ) — (323,488 ) Proceeds from disposal of assets — — — 2,535 — 2,535 Notes receivable from affiliates 124,951 — 608,771 — (733,722 ) — Net cash from investing activities 124,951 — (80,743 ) 608,771 — (240,210 ) (733,722 ) (320,953 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities (1,123,495 ) — — — — — — (1,123,495 ) Repayment of long-term debt — — — (350,000 ) — — — (350,000 ) 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 — — — — — (57,048 ) — (57,048 ) Distributions to parent company, net (372,799 ) — — — — — — (372,799 ) Advances (to) from affiliates 2,020,141 28,115 (60,705 ) (1,131,145 ) 20,085 (876,491 ) — — Notes payable to affiliates (608,771 ) — — — — (124,951 ) 733,722 — Net cash from financing activities (91,374 ) 28,115 (60,705 ) (398,037 ) 20,085 (1,058,490 ) 733,722 (826,684 ) Net change in cash and cash equivalents (1 ) — (119 ) — — 98,580 — 98,460 Cash and cash equivalents, beginning of period 5 — 254 — — 65,521 — 65,780 Cash and cash equivalents, end of period $ 4 $ — $ 135 $ — $ — $ 164,101 $ — $ 164,240 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2014 (in thousands) Other Non-guarantor Noble- Subsidiaries Consolidating Cayman NHC NDH NHIL NDS6 of Noble Adjustments Total Cash flows from operating activities Net cash from operating activities $ 2,858,748 $ (127,706 ) $ 370,512 $ (211,228 ) $ (29,835 ) $ (1,390,805 ) $ — $ 1,469,686 Cash flows from investing activities Capital expenditures — — (1,245,121 ) — — (554,706 ) — (1,799,827 ) Notes receivable from affiliates 50 — — 273,744 — — (273,794 ) — Net cash from investing activities 50 — (1,245,121 ) 273,744 — (554,706 ) (273,794 ) (1,799,827 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities (569,489 ) — — — — — — (569,489 ) Repayment of long-term debt — — — (250,000 ) — — — (250,000 ) Debt issuance costs on senior notes and credit facilities (386 ) — — — — — — (386 ) Long-term borrowings of Paragon Offshore — — — — — 1,726,750 1,726,750 Financing costs on long- term borrowings of Paragon Offshore — — — — — (30,876 ) (30,876 ) Cash balances of Paragon Offshore in Spin-off — — — — (104,152 ) (104,152 ) Dividends paid to noncontrolling interests — — — — — (64,339 ) — (64,339 ) Distributions to parent company, net (421,801 ) — — — — — — (421,801 ) Advances (to) from affiliates (1,593,374 ) 127,706 874,565 187,480 29,835 373,788 — — Notes payable to affiliates (273,744 ) — — — — (50 ) 273,794 — Net cash from financing activities (2,858,794 ) 127,706 874,565 (62,520 ) 29,835 1,901,121 273,794 285,707 Net change in cash and cash equivalents 4 — (44 ) (4 ) — (44,390 ) — (44,434 ) Cash and cash equivalents, beginning of period 1 — 402 4 — 109,975 — 110,382 Cash and cash equivalents, end of period $ 5 $ — $ 358 $ — $ — $ 65,585 $ — $ 65,948 |