Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 17, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | VDI | |
Entity Registrant Name | VANTAGE DRILLING INTERNATIONAL | |
Entity Central Index Key | 0001465872 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,000,053 | |
Entity File Number | 333-212081 | |
Entity Tax Identification Number | 981372204 | |
Entity Address, Address Line One | 777 Post Oak Boulevard | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 281 | |
Local Phone Number | 404-4700 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 814,724 | $ 224,967 |
Restricted cash | 5,637 | 10,362 |
Trade receivables | 36,467 | 28,431 |
Inventory | 46,883 | 45,195 |
Prepaid expenses and other current assets | 19,324 | 17,278 |
Total current assets | 923,035 | 326,233 |
Property and equipment | ||
Property and equipment | 1,002,709 | 996,139 |
Accumulated depreciation | (263,778) | (208,836) |
Property and equipment, net | 738,931 | 787,303 |
Operating lease ROU assets | 7,515 | |
Other assets | 13,470 | 16,026 |
Total assets | 1,682,951 | 1,129,562 |
Current liabilities | ||
Accounts payable | 46,692 | 44,372 |
Other current liabilities | 39,267 | 17,983 |
Total current liabilities | 85,959 | 62,355 |
Long–term debt, net of discount and financing costs of $6,830 and $12,914 | 1,118,962 | 1,109,011 |
Other long-term liabilities | 25,426 | 22,889 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity | ||
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding | 5 | 5 |
Additional paid-in capital | 373,972 | 373,972 |
Accumulated earnings (deficit) | 78,449 | (438,670) |
Controlling interest shareholders' equity | 452,426 | (64,693) |
Noncontrolling interests | 178 | |
Total equity | 452,604 | (64,693) |
Total liabilities and shareholders’ equity | $ 1,682,951 | $ 1,129,562 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Long-term debt, discount and financing costs | $ 6,830 | $ 12,914 |
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 5,000,053 | 5,000,053 |
Ordinary shares, shares outstanding | 5,000,053 | 5,000,053 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | ||||
Total revenue | $ 40,644 | $ 64,556 | $ 711,582 | $ 182,681 |
Operating costs and expenses | ||||
Operating costs | 37,915 | 43,307 | 114,538 | 128,943 |
General and administrative | 6,644 | 9,303 | 86,014 | 22,935 |
Depreciation | 18,459 | 17,638 | 55,491 | 53,217 |
Total operating costs and expenses | 63,018 | 70,248 | 256,043 | 205,095 |
Income (loss) from operations | (22,374) | (5,692) | 455,539 | (22,414) |
Other income (expense) | ||||
Interest income | 4,245 | 533 | 113,614 | 974 |
Interest expense and other financing charges | (10,465) | (19,439) | (36,715) | (58,122) |
Other, net | 97 | 53 | 221 | (1,031) |
Total other income (expense) | (6,123) | (18,853) | 77,120 | (58,179) |
Income (loss) before income taxes | (28,497) | (24,545) | 532,659 | (80,593) |
Income tax (benefit) provision | (2,749) | 1,515 | 15,852 | 8,698 |
Net income (loss) | (25,748) | (26,060) | 516,807 | (89,291) |
Net loss attributable to noncontrolling interests | (28) | (312) | ||
Net income (loss) attributable to shareholders | $ (25,720) | $ (26,060) | $ 517,119 | $ (89,291) |
Earnings (loss) per share | ||||
Basic | $ (5.14) | $ (5.21) | $ 102.47 | $ (17.86) |
Diluted | $ (5.14) | $ (5.21) | $ 102.14 | $ (17.86) |
Contract Drilling Services | ||||
Revenue | ||||
Total revenue | $ 35,830 | $ 59,034 | $ 101,575 | $ 165,813 |
Contract Termination Revenue | ||||
Revenue | ||||
Total revenue | 594,029 | |||
Reimbursables and Other | ||||
Revenue | ||||
Total revenue | $ 4,814 | $ 5,522 | $ 15,978 | $ 16,868 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2017 | $ 76,775 | $ 5 | $ 373,972 | $ (297,202) | |
Beginning Balance (in shares) at Dec. 31, 2017 | 5,000,000 | ||||
Net income (loss) | (32,137) | (32,137) | |||
Ending Balance at Mar. 31, 2018 | 44,638 | $ 5 | 373,972 | (329,339) | |
Ending Balance (in shares) at Mar. 31, 2018 | 5,000,000 | ||||
Beginning Balance at Dec. 31, 2017 | 76,775 | $ 5 | 373,972 | (297,202) | |
Beginning Balance (in shares) at Dec. 31, 2017 | 5,000,000 | ||||
Net income (loss) | (89,291) | ||||
Ending Balance at Sep. 30, 2018 | (12,516) | $ 5 | 373,972 | (386,493) | |
Ending Balance (in shares) at Sep. 30, 2018 | 5,000,000 | ||||
Beginning Balance at Mar. 31, 2018 | 44,638 | $ 5 | 373,972 | (329,339) | |
Beginning Balance (in shares) at Mar. 31, 2018 | 5,000,000 | ||||
Net income (loss) | (31,094) | (31,094) | |||
Ending Balance at Jun. 30, 2018 | 13,544 | $ 5 | 373,972 | (360,433) | |
Ending Balance (in shares) at Jun. 30, 2018 | 5,000,000 | ||||
Net income (loss) | (26,060) | (26,060) | |||
Ending Balance at Sep. 30, 2018 | (12,516) | $ 5 | 373,972 | (386,493) | |
Ending Balance (in shares) at Sep. 30, 2018 | 5,000,000 | ||||
Beginning Balance at Dec. 31, 2018 | $ (64,693) | $ 5 | 373,972 | (438,670) | |
Beginning Balance (in shares) at Dec. 31, 2018 | 5,000,053 | 5,000,000 | |||
Contributions from holders of noncontrolling interests | $ 122 | $ 122 | |||
Net income (loss) | (47,904) | (47,890) | (14) | ||
Ending Balance at Mar. 31, 2019 | (112,475) | $ 5 | 373,972 | (486,560) | 108 |
Ending Balance (in shares) at Mar. 31, 2019 | 5,000,000 | ||||
Beginning Balance at Dec. 31, 2018 | $ (64,693) | $ 5 | 373,972 | (438,670) | |
Beginning Balance (in shares) at Dec. 31, 2018 | 5,000,053 | 5,000,000 | |||
Net income (loss) | $ 516,807 | ||||
Ending Balance at Sep. 30, 2019 | $ 452,604 | $ 5 | 373,972 | 78,449 | 178 |
Ending Balance (in shares) at Sep. 30, 2019 | 5,000,053 | 5,000,000 | |||
Beginning Balance at Mar. 31, 2019 | $ (112,475) | $ 5 | 373,972 | (486,560) | 108 |
Beginning Balance (in shares) at Mar. 31, 2019 | 5,000,000 | ||||
Contributions from holders of noncontrolling interests | 1,059 | 1,059 | |||
Net income (loss) | 590,459 | 590,729 | (270) | ||
Ending Balance at Jun. 30, 2019 | 479,043 | $ 5 | 373,972 | 104,169 | 897 |
Ending Balance (in shares) at Jun. 30, 2019 | 5,000,000 | ||||
Reclassification of contributions from holders of noncontrolling interests | (691) | (691) | |||
Net income (loss) | (25,748) | (25,720) | (28) | ||
Ending Balance at Sep. 30, 2019 | $ 452,604 | $ 5 | $ 373,972 | $ 78,449 | $ 178 |
Ending Balance (in shares) at Sep. 30, 2019 | 5,000,053 | 5,000,000 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 516,807 | $ (89,291) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation | 55,491 | 53,217 |
Amortization of debt financing costs | 1,217 | 351 |
Amortization of debt discount | 5,354 | 37,021 |
Amortization of contract value | 1,643 | 4,721 |
PIK interest on the Convertible Notes | 5,779 | 5,735 |
Share-based compensation expense | 1,053 | 7,777 |
Deferred income tax expense | 59 | 1,874 |
Loss (gain) on disposal of assets | 109 | (1,313) |
Changes in operating assets and liabilities: | ||
Trade receivables | (8,036) | 6,290 |
Inventory | (1,688) | 544 |
Prepaid expenses and other current assets | (2,046) | (5,591) |
Other assets | 3,214 | 1,230 |
Accounts payable | 2,320 | (3,245) |
Other current liabilities and other long-term liabilities | 11,011 | (6,839) |
Net cash provided by operating activities | 592,287 | 12,481 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property and equipment | (7,229) | (8,275) |
Down payment on Soehanah acquisition | (15,000) | |
Proceeds from sale of Vantage 260 | 4,703 | |
Net cash used in investing activities | (7,229) | (18,572) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of long-term debt | (5,815) | |
Contributions from holders of noncontrolling interests | 1,181 | |
Debt issuance costs | (487) | |
Net cash provided by (used in) financing activities | 694 | (5,815) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 585,752 | (11,906) |
Unrestricted and restricted cash and cash equivalents—beginning of period | 239,387 | 195,455 |
Unrestricted and restricted cash and cash equivalents—end of period | 825,139 | 183,549 |
Cash paid for: | ||
Interest | 14,916 | 16,874 |
Income taxes (net of refunds) | 11,675 | 10,955 |
Non-cash investing and financing transactions: | ||
PIK interest on the Convertible Notes | $ 3,867 | 3,824 |
Accrued but unpaid capital expenditures at period end | 4,353 | |
Trade-in value on equipment upgrades | $ 570 |
Organization and Recent Events
Organization and Recent Events | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Recent Events | 1. Organization and Recent Events Vantage Drilling International, a Cayman Islands exempted company, is an international offshore drilling company focused on operating a fleet of modern, high specification drilling units. Our principal business is to contract drilling units, related equipment and work crews, primarily on a dayrate basis to drill oil and natural gas wells for our customers. Through our fleet of drilling units, we are a provider of offshore contract drilling services to major, national and independent oil and natural gas companies, focused on international markets. Additionally, for drilling units owned by others, we provide construction supervision services for rigs that are under construction, preservation management services for rigs that are stacked and operations and marketing services for operating rigs. Joint Venture On November 15, 2017, Vantage and ADES, through their subsidiaries, entered into a Shareholders’ Agreement to form an entity named ADVantage to provide deepwater drilling services offshore of Egypt. ADVantage, which is a joint venture, owned 51% by Vantage and 49% by ADES, commenced a drilling services contract with Dana Gas Egypt Limited (“Dana Gas”) in May 2019 (the “Egyptian Drilling Contract”) to perform deepwater drilling services offshore of Egypt. The term of the Egyptian Drilling Contract was for one well with the option to extend the term by up to three additional wells. On September 24, 2019, Dana Gas assigned the Egyptian Drilling Contract to Belayim Petroleum Company (“Petrobel”), a joint venture of Eni and Egyptian General Petroleum Corporation, pursuant to which Petrobel has exercised an option under the Egyptian Drilling Contract to extend the term for one well. On October 15, 2019, ADVantage became entitled to perform drilling services for Petrobel. Repurchase Offer On July 8, 2019, we commenced an offer (the “Repurchase Offer”) to repurchase up to $75.0 million of the 9.25% First Lien Notes. See “Note 6. Debt” Drilling Contract Arbitration On June 20, 2019, VDEEP and VDDI entered into the Petrobras Agreement with the Petrobras Parties relating to the Petrobras Award. See “Note 9. Commitments and Contingencies” Brazil Improbity Action On April 27, 2018, the Company was added as an additional defendant in a legal proceeding initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer “Note 9. Commitments and Contingencies” |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Consolidation: The accompanying interim consolidated financial information as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 has been prepared without audit, pursuant to the rules and regulations of the SEC, and includes our accounts and those of our majority owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair presentation. The balance sheet at December 31, 2018 is derived from our December 31, 2018 audited financial statements. These interim financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we have the (a) power to direct the operating activities, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheet. The carrying amount associated with ADVantage was as follows: September 30, 2019 December 31, 2018 (unaudited, in thousands) Assets $ 5,807 $ — Liabilities 5,444 — Net carrying amount $ 363 $ — Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. Inventory: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated initial useful lives ranging from five to thirty-five years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated initial useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the balance sheet and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. In the nine months ended September 30, 2019, we recognized a net loss of approximately $0.1 million related to the sale or retirement of assets. No gain or loss was recognized in the three months ended September 30, 2019 related to the sale or retirement of assets. For the three and nine months ended September 30, 2018, we recognized a net loss of approximately $1.2 million and a net gain of approximately $1.3 million, respectively, related to the sale or retirement of assets. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and natural gas exploration, development and production expenditures. Oil and natural gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and natural gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and natural gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. In connection with our adoption of fresh-start accounting upon our emergence from bankruptcy on the Effective Date, an adjustment of $2.0 billion was recorded to decrease the net book value of our drilling rigs to estimated fair value. The projections and assumptions used in that valuation have not changed significantly as of September 30, 2019; accordingly, no triggering event has occurred to indicate that the current carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did not capitalize any interest for the reported periods. Intangible Assets: In April 2017, pursuant to a purchase and sale agreement with a third party, we completed the purchase of the , a class 154-44C jackup rig, and a related multi-year drilling contract for $13.0 million. In connection with our acquisition, the Company recorded an identifiable intangible asset of $12.6 million for the fair value of the acquired favorable drilling contract. The resulting intangible asset was amortized on a straight-line basis over the two-year term of the drilling contract, which ended in April 2019. We recognized approximately $1.6 million of amortization expense for intangible assets for the nine months ended September 30, 2019, and approximately $1.6 million and $4.7 million for the three and nine months ended September 30, 2018, respectively Debt Financing Costs: Costs incurred with debt financings are deferred and amortized over the term of the related financing facility on a straight-line basis which approximates the interest method. Debt issuance costs related to a recognized debt liability are presented in the Consolidated Balance Sheet as a direct deduction from the carrying amount of that debt liability. Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We do not have an allowance for doubtful accounts on our trade receivables as of September 30, 2019 and December 31, 2018. Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of ordinary shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of ordinary shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into ordinary shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Weighted average ordinary shares outstanding for basic EPS 5,000 5,000 5,047 5,000 Restricted share equity awards — — 16 — Adjusted weighted average ordinary shares outstanding for diluted EPS 5,000 5,000 5,063 5,000 The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Convertible Notes 8,115 7,995 8,075 7,995 Restricted share equity awards 62 35 — 29 Future potentially dilutive ordinary shares excluded from diluted EPS 8,177 8,030 8,075 8,024 The ordinary shares issuable upon the conversion of the Convertible Notes, if converted, are excluded as the conditions necessary for conversion had not been satisfied as of the end of the reporting period. Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three and nine months ended September 30, 2019, we recognized a net gain of approximately $0.1 million and $0.2 million, respectively, related to currency exchange rates. For the three and nine months ended September 30, 2018, we recognized net gain of approximately $0.1 million and a net loss of approximately $1.0 million, respectively, related to currency exchange rates. Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in the balance sheet principally due to the short-term nature or floating rate nature of these instruments. At September 30, 2019, the fair value of the 9.25% First Lien Notes and the Convertible Notes was approximately $339.5 million and $594.3 million, respectively, based on quoted market prices in a less active market, a Level 2 measurement. Recently Adopted Accounting Standards: We adopted ASU No. 2016-02, Leases (ASC 842) ASU No. 2018-11, "Leases - Targeted Improvements." Leases. n addition, we elected certain practical expedients, which permit us to not reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, and to not separate lease and non-lease components for all classes of underlying assets. As a lessee, we also made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet for all classes of underlying assets. Adoption of the new standard resulted in an increase in the Company’s assets and liabilities of approximately $9.2 million as of January 1, 2019. Our drilling contracts contain a lease component related to the underlying drilling equipment, in addition to the service component provided by our crews and our expertise to operate such drilling equipment. As outlined in ASU 2018-11, we have determined that the non-lease service component of our drilling contracts is the predominant element of the combined component and continue to account for the combined components as a single performance obligation under Topic 606, Revenue from Contracts with Customers. The bareboat charter contract on the recently acquired Soehanah Recently Issued Accounting Standards: In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses.” |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. Mobilization/Demobilization Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight ‑ Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Contract Termination Revenue. On June 20, 2019, VDEEP and VDDI entered into the Petrobras Agreement with the Petrobras Parties relating to the Petrobras Award (see “Note 9. Commitments and Contingencies” for additional information regarding the Petrobras Agreement and the Petrobras Award). For the nine months ended September 30, 2019, we recognized approximately $594.0 million in “Contract termination revenue” and $106.9 million in “Interest income” associated with the Payments (as defined in “Note 9. Commitments and Contingencies”) . Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We are generally considered a principal in such transactions and therefore, recognize reimbursable revenues and the corresponding costs as we provide the customer ‑ requested goods and services. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 23,265 $ 11,571 $ 324 $ 35,160 $ 22,427 $ 35,535 $ 307 $ 58,269 Charter lease revenue 1,288 — — 1,288 — — — — Amortized revenue 406 588 — 994 484 588 — 1,072 Reimbursable revenue 2,229 346 627 3,202 2,559 1,523 1,133 5,215 Total revenue $ 27,188 $ 12,505 $ 951 $ 40,644 $ 25,470 $ 37,646 $ 1,440 $ 64,556 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 64,382 $ 34,073 $ 725 $ 99,180 $ 62,127 $ 101,183 $ 912 $ 164,222 Contract termination revenue — 594,029 — 594,029 — — — — Charter lease revenue 3,173 — — 3,173 — — — — Amortized revenue 1,375 1,745 — 3,120 758 1,745 — 2,503 Reimbursable revenue 6,687 3,255 2,138 12,080 7,760 4,835 3,361 15,956 Total revenue $ 75,617 $ 633,102 $ 2,863 $ 711,582 $ 70,645 $ 107,763 $ 4,273 $ 182,681 Dayrate revenue and amortized revenue for Jackups and Deepwater are included within “Contract drilling services” in our Consolidated Statement of Operations. All other revenue, excluding “Contract termination revenue”, are included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days. We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities”, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: September 30, 2019 December 31, 2018 (unaudited, in thousands) Current contract cost assets $ 301 $ 774 Noncurrent contract cost assets 2,047 3,999 Current contract revenue liabilities 2,109 2,309 Noncurrent contract revenue liabilities 2,679 4,424 Significant changes in contract cost assets and contract revenue liabilities during the nine months ended September 30, 2019 are as follows: Contract Costs Contract Revenues (unaudited, in thousands) Balance as of December 31, 2018 $ 4,773 $ 6,733 Increase (decrease) due to contractual changes 774 3,201 Decrease due to recognition of revenue (3,199 ) (5,146 ) Balance as of September 30, 2019 (1) $ 2,348 $ 4,788 (1) We expect to recognize contract revenues of approximately $2.7 million during the remaining three months of 2019 and $2.1 million thereafter related to unsatisfied performance obligations existing as of September 30, 2019. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time of the future services. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On June 13, 2018, we entered into a share purchase agreement with Ship Finance International Limited to acquire the shares of Rig Finance Limited, an entity that owns the Soehanah We accounted for the acquisition as an asset purchase in accordance with accounting guidance considering that substantially all of the fair value of the gross assets acquired was concentrated in the Soehanah (in thousands) Total cash consideration (1) $ 85,000 Purchase price allocation: Soehanah rig and equipment 81,850 Inventory supplies and spare parts 3,150 Cash 913 Charterer deposit (913 ) Net assets acquired $ 85,000 (1) Includes $0.4 million of transaction costs. Pro forma results of operations related to the acquisition are not material to our Consolidated Statement of Operations. In April 2017, pursuant to a purchase and sale agreement with a third party, we completed the purchase of the Vantage 260 Sapphire Driller Vantage 260 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. The components of lease expense were as follows: (unaudited, in thousands) Classification in the Consolidated Statement of Operations Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost (1) Operating costs $ 1,480 $ 4,096 Operating lease cost (1) General and administrative 279 869 Sublease income Operating costs (124 ) (346 ) Sublease income General and administrative (76 ) (220 ) Total operating lease cost $ 1,559 $ 4,399 (1) Short-term lease costs were $0.3 million and $0.7 million during the three and nine months ended September 30, 2019, respectively. Operating cash flows used for operating leases approximates lease expense. (unaudited, in thousands) Classification in the Consolidated Balance Sheet September 30, 2019 Assets: Operating lease assets Operating lease ROU assets $ 7,515 Total leased assets $ 7,515 Liabilities: Current operating Other current liabilities $ 4,209 Noncurrent operating Other long-term liabilities 3,656 Total lease liabilities $ 7,865 As of September 30, 2019, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining three months of 2019 $ 1,182 2020 4,031 2021 1,500 2022 1,316 2023 905 Thereafter - Total future lease payments $ 8,934 Less imputed interest (1,069 ) Present value of lease obligations $ 7,865 As of September 30, 2019, the weighted average discount rate and the weighted average remaining lease term for operating leases was 9.25% and 2.7 years, respectively. ROU assets and lease liabilities recorded for leases commencing during the quarter ended September 30, 2019 was $0.7 million. As of December 31, 2018, maturities of lease liabilities as presented under ASC Topic 840 were as follows: (unaudited, in thousands) Operating Leases 2019 $ 4,035 2020 3,465 2021 1,321 2022 1,313 2023 903 Thereafter - Total future minimum lease payments $ 11,037 The bareboat charter contract on our recently acquired Soehanah “Note 4. Acquisitions” Soehanah |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Our debt was composed of the following, as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $6,830 and $7,560, respectively $ 343,170 $ 342,439 Convertible Notes, net of discount of $0 and $5,354, respectively 775,792 766,572 1,118,962 1,109,011 Less current maturities of long-term debt — — Long-term debt, net $ 1,118,962 $ 1,109,011 9.25% First Lien Notes. On November 30, 2018, the Company issued $350.0 million in aggregate principal amount of 9.25% First Lien Notes in a private placement. The 9.25% First Lien Notes were issued at par and are fully guaranteed on senior secured basis, by the Company’s direct and indirect subsidiaries and are secured by a first priority lien on substantially all of the assets of the Company and its subsidiaries, in each case subject to certain exceptions. The 9.25% First Lien Notes are subject to first payment priority in favor of holders of up to $50.0 million of future super-priority debt and are subject to both mandatory and optional redemption provisions. The 9.25% First Lien Notes mature on November 15, 2023 and bear interest from the date of their issuance at the rate of 9.25% per year. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months and is payable semi-annually in arrears, commencing on May 15, 2019. The Indenture for the 9.25% First Lien Notes includes customary covenants and events of default, including covenants that, among other things, restrict the granting of liens, restrict the making of investments, restrict the incurrence of indebtedness and the conveyance of vessels, limit transactions with affiliates, and require that the Company provide periodic financial reports. The net proceeds from the issuance were used (i) to repay all obligations under the 2016 Term Loan Facility and to terminate the credit agreement governing such facility, (ii) to redeem all of our then-outstanding 10% Second Lien Notes, (iii) to fund the remaining amounts to be paid in connection with the purchase of the Soehanah Concurrently with the issuance of the 9.25% First Lien Notes, we entered into a new letter of credit facility to replace the letter of credit facility existing under the 2016 Term Loan Facility. The new facility has a capacity of $50.0 million, with all outstanding letters of credit being cash collateralized. We had issued $9.6 million in letters of credit under this facility as of September 30, 2019. On July 8, 2019, we commenced the Offer to repurchase up to $75.0 million of the 9.25% First Lien Notes at a purchase price equal to 100.0% of the principal of the 9.25% First Lien Notes to be repurchased, plus accrued and unpaid interest and additional amounts, if any, but not including, the date fixed for the purchase of the 9.25% First Lien Notes tendered pursuant to the Offer. The Offer to purchase for cash was made pursuant to the terms of the indenture governing the 9.25% First Lien Notes in connection with the receipt by our subsidiaries, VDEEP and VDDI, of approximately $690.8 million and $10.1 million, respectively, on June 21, 2019 on account of the Petrobras Award. In accordance with the indenture governing the 9.25% First Lien Notes, we were required to offer to purchase at least $75.0 million of the 9.25% First Lien Notes in accordance with the terms thereof. No 9.25% First Lien Notes were tendered for purchase as of the Offer Expiration Date. Accordingly, the Company has concluded its obligation under the Indenture to conduct such offer, and, in accordance with the terms of the Indenture, the proceeds from the Petrobras Agreement (net of direct costs relating to the recovery thereof) will be available for use by the Company without any restrictions under the Indenture. Convertible Notes. In connection with the adoption of fresh-start accounting, the Convertible Notes were recorded at an estimated fair value of approximately $603.1 million. The difference between face value and the fair value at date of issuance of the Convertible Notes was recorded as a debt discount and was being amortized to interest expense over the expected life of the Convertible Notes using the effective interest rate method. The debt discount was fully amortized in February 2019. Interest on the Convertible Notes, which commenced on June 30, 2016, is payable semi-annually in arrears as PIK, either through an increase in the outstanding principal amount of the Convertible Notes or, if the Company is unable to increase such principal amount, by the issuance of additional Convertible Notes. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months at a rate of 1.0% per annum for the first four years and then increasing to 12.0% per annum until maturity. The Company’s obligations under the Convertible Notes are fully and unconditionally guaranteed (except for customary release provisions), on a senior secured basis, by all of the subsidiaries of the Company, and the obligations of the Company and guarantors are secured by liens on substantially all of their respective assets. The guarantees by the Company’s subsidiaries of the Convertible Notes are joint and several. The Company has no independent assets or operations apart from the assets and operations of its wholly-owned subsidiaries. In addition, there are no significant restrictions on the Company’s or any subsidiary guarantor’s ability to obtain funds from its subsidiaries by dividend or loan. The Indenture for the Convertible Notes includes customary covenants that restrict the granting of liens and customary events of default, including, among other things, failure to issue securities upon conversion of the Convertible Notes. In addition, the Indenture, and the applicable Collateral Agreements, provide that any capital stock and other securities of any of the guarantors will be excluded from the collateral to the extent the pledge of such capital stock or other securities to secure the Convertible Notes would cause such guarantor to be required to file separate financial statements with the SEC pursuant to Rule 3-16 of Regulation S-X (as in effect from time to time). The Convertible Notes will convert only upon the approval of the Board of Directors (which approval shall require the affirmative vote of a supermajority of the non-management directors). For these purposes, “supermajority of the non-management directors” means the affirmative vote of at least 75% of the non-management directors eligible to vote. In the event of a change in control, the holders of the Convertible Notes have the right to require us to repurchase all or any part of the Convertible Notes at a price equal to 101.0% of their principal amount. We assessed the prepayment requirements and concluded that this feature met the criteria to be considered an embedded derivative and must be bifurcated and separately valued at fair value due to the discount on the Convertible Notes at issuance. We considered the probabilities of a change of control occurring and determined that the derivative had a de minimis value at September 30, 2019 and December 31, 2018, respectively. On June 7, 2019, the Company announced that the Board of Directors had approved the conversion of all of the Convertible Notes into ordinary shares of the Company to take effect on or as promptly as practicable after July 1, 2019, subject to the satisfaction of certain conditions required by the indenture governing the Convertible Notes. The Company then announced on July 18, 2019 that, in light of the Petrobras Agreement between the Petrobras Parties and certain of the Company’s subsidiaries, the Board of Directors had decided to reevaluate whether it is in the best interests of the Company and its shareholders to proceed with the Conversion of the Convertible Notes into ordinary shares at this point in time. Accordingly, no action is being undertaken by the Company at the current time to proceed with the Conversion. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity We have 50,000,000 authorized ordinary shares, par value $0.001 per share. Upon emergence from bankruptcy on the Effective Date, we issued 5,000,053 ordinary shares in connection with the settlement of Liabilities Subject to Compromise in accordance with the Reorganization Plan and the On August 9, 2016, the Company adopted the 2016 Amended MIP to align the interests of participants with those of the shareholders by providing incentive compensation opportunities tied to the performance of the Company’s equity securities. Pursuant to the 2016 Amended MIP, the Compensation Committee may grant to employees, directors and consultants stock options, restricted stock, restricted stock units or other awards. TBGs granted under the 2016 Amended MIP vest annually, ratably over four years; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the Effective Date. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that actually vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. No awards were granted to employees or directors during the nine months ended September 30, 2019. During the nine months ended September 30, 2018, 1,030 TBGs and 2,403 PBGs were granted to a single employee of the Company. During the same period, four members of the Board of Directors were granted 300 TBGs each, for a total of 1,200 TBGs. In the nine months ended September 30, 2019, 18,889 of previously granted TBGs vested. Both the TBGs and PBGs are classified as liabilities consistent with the classification of the underlying securities and under the provisions of ASC 718 Compensation – Stock Compensation Share based compensation expense for PBGs will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the balance sheet date will be recognized for the service period completed. As of September 30, 2019, we concluded that it was not probable that the TEV performance condition would be met and therefore, no share based compensation expense was recognized for PBGs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes We are a Cayman Islands entity. The Cayman Islands do not impose corporate income taxes. Consequently, we have calculated income taxes based on the laws and tax rates in effect in the countries in which operations are conducted, or in which we and our subsidiaries are considered resident for income tax purposes. We operate in multiple countries under different legal forms. As a result, we are subject to the jurisdiction of numerous domestic and foreign tax authorities, as well as to tax agreements and treaties among these governments. Tax rates vary between jurisdictions, as does the tax base to which the rates are applied. Taxes may be levied based on net profit before taxes or gross revenues or as withholding taxes on revenue. Determination of income tax expense in any jurisdiction requires the interpretation of the related tax laws and regulations and the use of estimates and assumptions regarding significant future events, such as the amount, timing and character of deductions, permissible revenue recognition methods under the tax law and the sources and character of income and tax credits. Our income tax expense may vary substantially from one period to another as a result of changes in the tax laws, regulations, agreements and treaties, foreign currency exchange restrictions and fluctuations, rig movements or our level of operations or profitability in each tax jurisdiction. Furthermore, our income taxes are generally dependent upon the results of our operations and when we generate significant revenues in jurisdictions where the income tax liability is based on gross revenues or asset values, there is no correlation to the operating results and the income tax expense. Furthermore, in some jurisdictions we do not pay taxes or receive benefits for certain income and expense items, including interest expense, gains or losses on disposal or transfer of assets, reorganization expenses and write-off of development costs. Deferred income tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We provide for deferred taxes on temporary differences between the financial statements and tax bases of assets and liabilities using the enacted tax rates which are expected to apply to taxable income when the temporary differences are expected to reverse. Deferred tax assets are also provided for certain tax losses and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. In certain jurisdictions we are taxed under preferential tax regimes, which may require our compliance with specified requirements to sustain the tax benefits. We believe we are in compliance with the specified requirements and will continue to make all reasonable efforts to comply; however, our ability to meet the requirements of the preferential tax regimes may be affected by changes in laws or administrative practices, our business operations and other factors affecting the Company and industry, many of which are beyond our control. Our periodic tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate in accordance with the normal statute of limitations in the applicable jurisdiction. These examinations may result in assessments of additional taxes that are resolved with the authorities or through the courts. Resolution of these matters involves uncertainties and there are no assurances as to the outcome. Our tax years 2010 and forward remain open to examination in many of our jurisdictions and we are currently involved in several tax examinations in jurisdictions where we are operating or have previously operated. As information becomes available during the course of these examinations, we may increase or decrease our estimates of tax assessments and accruals. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies We are subject to litigation, claims and disputes in the ordinary course of business, some of which may not be covered by insurance. There is an inherent risk in any litigation or dispute and no assurance can be given as to the outcome of any claims. Matters Related to the Reorganization Plan In connection with our bankruptcy cases, two appeals were filed relating to the confirmation of the Reorganization Plan. Specifically, on January 29, 2016, Mr. Hsin-Chi Su and his company, F3 Capital, filed two appeals before the U.S. District Court – Delaware seeking a reversal of (i) the Court’s determination that Mr. Hsin-Chi Su and F3 Capital did not have standing to appear and be heard in the bankruptcy cases, which was made on the record at a hearing held on January 14, 2016, and (ii) the Court’s Findings of Fact, Conclusions of Law, and Order (I) Approving the Debtors’ (A) Disclosure Statement Pursuant to Sections 1125 and 1126(b) of the Bankruptcy Code, (B) Solicitation of Votes and Voting Procedures, and (C) Forms of Ballots, and (II) Confirming the Amended Joint Prepackaged Chapter 11 Plan of Offshore Group Investment Limited and its Affiliated Debtors [Docket No. 188], which was entered on January 15, 2016. The appeals were consolidated on June 14, 2016. On June 21, 2019, the U.S. District Court – Delaware rendered a decision affirming the U.S. Bankruptcy Court’s confirmation order relating to the Reorganization Plan. As Mr. Hsin-Chi Su and F3 Capital did not file a subsequent appeal of the U.S. District Court – Delaware’s decision within the prescribed period of time, the order of the U.S. District Court – Delaware constitutes a final, non-appealable order and therefore the foregoing matter is closed. On January 10, 2019, Mr. Hsin-Chi Su and F3 Capital filed a declaratory action against us in the U.S. District Court – Delaware seeking a ruling from the court that the confirmation of the Reorganization Plan does not prevent Mr. Hsin-Chi Su or F3 Capital from suing the Company for certain unspecified claims based on a theory of fraud alleged to be valued in excess of $2.0 billion. On March 4, 2019, we filed a motion to dismiss with the court, to which Mr. Hsin-Chi Su and F3 Capital filed a response and to which we subsequently filed a reply. We intend to vigorously defend against these claims, which we deem to be meritless. However, we cannot predict with certainty the ultimate decision by the court with respect to Mr. Hsin-Chi Su’s request. Drilling Contract Arbitration On August 31, 2015, PAI and PVIS, both subsidiaries of Petrobras, notified the Company of the termination of the Drilling Contract between PVIS and VDEEP and which had been novated to PAI and VDDI, claiming the Company had breached its obligations under the Drilling Contract. VDEEP and VDDI are both wholly-owned subsidiaries of the Company. We immediately filed an international arbitration claim against the Petrobras Parties, claiming wrongful termination of the Drilling Contract. On July 2, 2018, an international arbitration tribunal issued the Petrobras Award in favor of VDEEP and VDDI. The tribunal found that the Petrobras Parties breached the Drilling Contract, and awarded VDEEP and VDDI damages in the aggregate amount of $622.0 million against the Petrobras Parties, and dismissed the Petrobras Parties’ counterclaims against the Company with prejudice. The tribunal also awarded the Company interest on the foregoing award amount at an annual rate of 15.2%, compounded monthly, to accrue from (i) April 1, 2018, with respect to $615.6 million thereof, (ii) October 20, 2015, with respect to $5.2 million thereof, and (iii) November 19, 2015, with respect to $1.2 million thereof, in each case, until final payment of the Petrobras Award. In accordance with the terms of the Petrobras Award, each of the Company and Petrobras bore its own legal fees, and the fees and expenses of the tribunal, including the compensation of the arbitrators, aggregating approximately $1.5 million, were borne equally by both sides. On July 2, 2018, VDEEP and VDDI filed a petition (the “Petition”) in the U.S. District Court – Texas to confirm the Petrobras Award against the Petrobras Parties. On August 31, 2018, the Petrobras Parties filed with the U.S. District Court – Texas, among other things, a response to the Petition and a motion to vacate the Petrobras Award (the “Response and Motion to Vacate”). On March 8, 2019, the U.S. District Court – Texas heard both the Petition and the Response and Motion to Vacate. On May 20, 2019, the U.S. District Court – Texas granted the Petition to confirm the Petrobras Award against the Petrobras Parties and denied the Petrobras Parties’ motion to vacate the Petrobras Award. On May 22, 2019, the U.S. District Court – Texas rendered its final judgment in favor of VDEEP and VDDI in the amount of approximately $734.0 million. Separately, in connection with enforcing the Petrobras Award against the Petrobras Parties, VDEEP and VDDI secured an order from the Amsterdam District Court in the Netherlands on August 22, 2018, which froze certain assets of Petrobras and PVIS in the Netherlands that we believe are valued in excess of our claim at this time. On November 15, 2018, VDEEP and VDDI filed a petition in the Court of Appeals in The Hague, the Netherlands, to recognize and enforce the Petrobras Award against the Petrobras Parties in the Netherlands (the “Dutch Enforcement Action”). On March 1, 2019, the Petrobras Parties filed their statement of defense with the Court of Appeals. The Court of Appeals heard the petition of VDEEP and VDDI and the Petrobras Parties’ statement of defense on May 14, 2019. On June 20, 2019, VDEEP and VDDI entered into the Petrobras Agreement with the Petrobras Parties relating to the Petrobras Award. The Petrobras Agreement considered the Petrobras Award amount together with interest calculated through May 22, 2019 and reduced that amount by 4.5%. Pursuant to the Petrobras Agreement, PVIS agreed to pay VDEEP $690,810,875 and PAI agreed to pay VDDI $10,128,565 (collectively, the “Payments”), in full satisfaction and payment of the Petrobras Award and the related judgement entered by the U.S. District Court – Texas confirming the Petrobras Award (the “Judgment”). Neither party released any of its claims, except for certain claims in respect of certain pre-judgement attachments made by VDEEP and VDDI on certain assets of PVIS and Petrobras in the Netherlands. VDEEP and VDDI received the Payments in full on June 21, 2019. The Petrobras Parties filed a notice of appeal with the U.S. Court of Appeals for the Fifth Circuit seeking a reversal of the Judgment, which confirmed the Petrobras Award and denied their motion for vacatur. We believe there is no basis for reversal and intend to vigorously contest the appeal. Under the Petrobras Agreement, VDEEP and VDDI were required to take actions in order to release liens on certain Petrobras assets in the United States and the Netherlands. In addition, the parties agreed under the Petrobras Agreement to a stay of the Dutch Enforcement Action until such time as there is a final, non-appealable judgment in the U.S. proceedings or until such time as the Petrobras Parties assert a claim for reimbursement of all or any part of the Payments, whichever is earlier. In light of the retention by the Petrobras Parties of their rights, including the right to appeal the Judgment, the Petrobras Parties may assert a claim for the return of all or a portion of the Payments made to satisfy the Petrobras Award in the event the U.S. judgment is overturned on appeal. The Company can provide no assurances as to the ultimate outcome of any such appeals. In addition, the Payments received by VDEEP and VDDI will be subject to reductions due to currently owed and future legal fees (including, among others, a contingency fee equal to 10% of the Payments) and any applicable taxes. Accordingly, no assurances can be given as to the amount of the Payments to be ultimately realized by the Company. Brazil Improbity Action On April 27, 2018, the Company was added as an additional defendant in a legal proceeding initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer Titanium Explorer th The damages claimed in the proceeding are in the amount of BRL 102.8 million (approximately $31.0 million), together with a civil fine equal to three times that amount. We understand that the Brazilian Federal Court issued an order authorizing the seizure and freezing of the assets of the Company and the other three defendants in the legal proceeding, as a precautionary measure, in the amount of approximately $124.0 million. We and the other three defendants are jointly and severally liable for this amount. The seizure order has not had an effect on our assets or operations, as we do not own any assets in Brazil, and do not currently intend to relocate any assets to Brazil. On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the U.S. Department of Justice pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against our U.S. assets in the amount of $124.0 million. We believe this request is not supported by applicable law and intend to vigorously oppose and defend against any attempts to seize our assets. On April 12, 2019, we filed an interlocutory appeal with the 4 th On May 20, 2019, the Company announced that the Brazilian Appellate Court ruled in favor of the Company’s appeal to stay the seizure and freezing order of the Brazilian Federal Court. The foregoing ruling is still subject to confirmation by a three-judge panel, and is subject to appeal, and the Company can offer no assurances that the stay will be confirmed or as to the outcome of any appeal thereof. The Company has communicated the Brazilian Appellate Court’s ruling to the DOJ, and has asked the Brazilian Federal Court to do the same. On July 18, 2019, the Company announced that the Brazilian Government made a filing with the Brazilian Federal Court reporting that the DOJ has advised the Brazilian Ministry of Justice that it would not be possible for the DOJ to comply with the mutual assistance request in respect of the asset freeze order. The Company also announced that it learned from the Brazilian Ministry of Justice that the DOJ’s response to the request for mutual assistance stated that no legal grounds existed for the implementing the requested asset freeze, and that the DOJ was returning the request without taking action and considers the matter concluded. The Company intends to continue to vigorously defend against the allegations made in the underlying improbity action. However, we can neither predict the ultimate outcome of this matter nor that there will not be further developments in the “Car Wash” investigation or in any other ongoing investigation or related proceeding that could adversely affect us. Restructuring Agreement Pursuant to the terms of the Restructuring Agreement among VDC and a majority of our secured creditors, the Company agreed to the Reorganization Plan and VDC agreed to commence official liquidation proceedings under the laws of the Cayman Islands. On December 2, 2015, pursuant to the Restructuring Agreement, the Company acquired two subsidiaries responsible for the management of the Company from VDC in exchange for the VDC Note. In connection with our separation from VDC, we and the Joint Official Liquidators, appointed to oversee the liquidation of VDC entered into discussions regarding the settlement of certain intercompany receivables and payables as between the Company and its subsidiaries, on the one hand, and VDC and its subsidiaries, on the other. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | 10. Supplemental Financial Information Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Sales tax receivable $ 9,205 $ 10,145 Income tax receivable 1,697 874 Prepaid insurance 1,026 660 Other receivables 1,948 1,634 Current deferred contract costs 301 774 Other 5,147 3,191 $ 19,324 $ 17,278 Property and Equipment, net Property and equipment, net, consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Drilling equipment $ 963,649 $ 962,618 Assets under construction 19,484 13,969 Office and technology equipment 18,452 18,452 Leasehold improvements 1,124 1,100 1,002,709 996,139 Accumulated depreciation (263,778 ) (208,836 ) Property and equipment, net $ 738,931 $ 787,303 Other Assets Other assets consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Noncurrent restricted cash $ 4,778 $ 4,058 Contract value, net — 1,643 Deferred certification costs 3,738 3,548 Noncurrent deferred contract costs 2,047 3,999 Deferred income taxes 1,787 1,844 Other noncurrent assets 1,120 934 $ 13,470 $ 16,026 Other Current Liabilities Other current liabilities consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Interest $ 14,182 $ 2,827 Compensation 7,760 7,013 Income taxes payable 7,803 3,175 Current deferred revenue 2,109 2,309 Current portion of operating lease liabilities 4,209 — Other 3,204 2,659 $ 39,267 $ 17,983 Long-term Liabilities Long-term liabilities consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Noncurrent deferred revenue $ 2,679 $ 4,424 Deferred income taxes 722 720 2016 MIP 12,618 11,565 Noncurrent operating lease liabilities 3,656 — Other non-current liabilities 5,751 6,180 $ 25,426 $ 22,889 Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Cash and cash equivalents $ 814,724 $ 224,967 Restricted cash 5,637 10,362 Restricted cash included within Other Assets 4,778 4,058 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 825,139 $ 239,387 Restricted cash as of September 30, 2019 and December 31, 2018 represents cash held by banks as certificates of deposit collateralizing letters of credit. Transactions with Former Parent Company The following table summarizes the balances payable to VDC included in the Company's Consolidated Balance Sheet as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Accounts payable to related parties, net $ 17,278 $ 17,278 $ 17,278 $ 17,278 See “Note 9. Commitments and Contingencies” Related Party Transactions In association with the establishment of ADVantage, the Company and ADES contributed cash to ADVantage in excess of the issued capital of the joint venture, with the understanding that such amounts are to be considered shareholder loans. As of September 30, 2019, the total outstanding amount due to ADES for such excess cash contributions was approximately $691,000, which is included in “Other current liabilities” on the Consolidated Balance Sheet. In conjunction with the establishment of ADVantage, the Company entered into a series of agreements with ADES, including: (i) a Secondment Agreement; (ii) a Manpower Agreement; and (iii) a Supply Services Agreement. Pursuant to these agreements, the Company, largely through its seconded employees, will provide various services to ADES and ADES will in turn provide various services to ADVantage. As of September 30, 2019, accounts receivable from ADES totaled approximately $4.0 million and accounts payable to ADES totaled approximately $3.6 million, included in “Trade receivables” and “Accounts payable,” respectively, on the Consolidated Balance Sheet. Except for the foregoing, we had no other material related party transactions that were not in the ordinary course of business as of September 30, 2019. |
Business Segment and Significan
Business Segment and Significant Customer Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment and Significant Customer Information | 11. Business Segment and Significant Customer Information We aggregate our contract drilling operations into one reportable segment even though we provide contract drilling services with different types of rigs, including jackup rigs and drillships, and in different geographic regions. Our operations are dependent on the global oil and gas industry and our rigs are relocated based on demand for our services and customer requirements. Our customers consist primarily of large international oil and gas companies, national or government-controlled oil and gas companies, and other international exploration and production companies. Soehanah Additionally, for drilling units owned by others, we provide construction supervision services while under construction, preservation management services when stacked and operations and marketing services for operating rigs. Our management business (excluding reimbursable revenue) represented less than 1% of our total revenue for each of the three and nine months ended September 30, 2019 and 2018, respectively. For the three and nine months ended September 30, 2019 and 2018, a substantial amount of our revenue was derived from countries outside of the United States. Consequently, we are exposed to the risk of changes in economic, political and social conditions inherent in foreign operations. Four customers accounted for approximately 34%, 23%, 14% and 11% of consolidated revenue for the three months ended September 30, 2019. Contract termination revenue from the Petrobras Parties accounted for approximately 83% of consolidated revenue for the nine months ended September 30, 2019. Excluding the contract termination revenue received from the Petrobras Parties, four customers accounted for approximately 26%, 24%, 14%, and 12% of consolidated revenue for the nine months ended September 30, 2019. Four customers accounted for approximately 43%, 15%, 12% and 12% of consolidated revenue for the three months ended September 30, 2018. For the nine months ended September 30, 2018, three customers accounted for approximately 45%, 14% and 14% of consolidated revenue. Our revenue by country was as follows for the periods indicated (periods representing revenues of less than 10% are included in Other countries): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (unaudited, in thousands) Cayman Islands $ — $ — $ 561,530 $ — Congo 7,807 35,939 — 107,666 India 9,374 9,618 — 24,991 Cameroon — 7,500 — — Gabon 7,901 — — — Qatar 5,560 — — — Malaysia 4,632 — — — Other countries (1) 5,370 11,499 150,052 50,024 Total revenues $ 40,644 $ 64,556 $ 711,582 $ 182,681 ( 1 ) Other countries represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. Our property and equipment, net by country was as follows as of the dates indicated (as of dates representing property and equipment of less than 10% are included in Other countries): September 30, 2019 December 31, 2018 (unaudited, in thousands) Egypt $ 210,992 $ — Canary Islands — 216,955 India 129,916 141,342 Indonesia 77,335 81,850 South Africa 152,983 164,239 Other countries (1) 167,705 182,917 Total property and equipment $ 738,931 $ 787,303 ( 1 ) Other countries represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. A substantial portion of our assets are mobile drilling units. Asset locations at the end of the period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the periods. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation: The accompanying interim consolidated financial information as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 has been prepared without audit, pursuant to the rules and regulations of the SEC, and includes our accounts and those of our majority owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair presentation. The balance sheet at December 31, 2018 is derived from our December 31, 2018 audited financial statements. These interim financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we have the (a) power to direct the operating activities, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheet. The carrying amount associated with ADVantage was as follows: September 30, 2019 December 31, 2018 (unaudited, in thousands) Assets $ 5,807 $ — Liabilities 5,444 — Net carrying amount $ 363 $ — |
Cash and Cash Equivalents | Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. |
Inventory | Inventory: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. |
Property and Equipment | Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated initial useful lives ranging from five to thirty-five years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated initial useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the balance sheet and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. In the nine months ended September 30, 2019, we recognized a net loss of approximately $0.1 million related to the sale or retirement of assets. No gain or loss was recognized in the three months ended September 30, 2019 related to the sale or retirement of assets. For the three and nine months ended September 30, 2018, we recognized a net loss of approximately $1.2 million and a net gain of approximately $1.3 million, respectively, related to the sale or retirement of assets. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and natural gas exploration, development and production expenditures. Oil and natural gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and natural gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and natural gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. In connection with our adoption of fresh-start accounting upon our emergence from bankruptcy on the Effective Date, an adjustment of $2.0 billion was recorded to decrease the net book value of our drilling rigs to estimated fair value. The projections and assumptions used in that valuation have not changed significantly as of September 30, 2019; accordingly, no triggering event has occurred to indicate that the current carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did not capitalize any interest for the reported periods. |
Intangible Assets | Intangible Assets: In April 2017, pursuant to a purchase and sale agreement with a third party, we completed the purchase of the , a class 154-44C jackup rig, and a related multi-year drilling contract for $13.0 million. In connection with our acquisition, the Company recorded an identifiable intangible asset of $12.6 million for the fair value of the acquired favorable drilling contract. The resulting intangible asset was amortized on a straight-line basis over the two-year term of the drilling contract, which ended in April 2019. We recognized approximately $1.6 million of amortization expense for intangible assets for the nine months ended September 30, 2019, and approximately $1.6 million and $4.7 million for the three and nine months ended September 30, 2018, respectively |
Debt Financing Costs | Debt Financing Costs: Costs incurred with debt financings are deferred and amortized over the term of the related financing facility on a straight-line basis which approximates the interest method. Debt issuance costs related to a recognized debt liability are presented in the Consolidated Balance Sheet as a direct deduction from the carrying amount of that debt liability. |
Rig and Equipment Certifications | Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. |
Income Taxes | Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We do not have an allowance for doubtful accounts on our trade receivables as of September 30, 2019 and December 31, 2018. |
Use of Estimates | Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. |
Earnings (Loss) per Share | Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of ordinary shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of ordinary shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into ordinary shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Weighted average ordinary shares outstanding for basic EPS 5,000 5,000 5,047 5,000 Restricted share equity awards — — 16 — Adjusted weighted average ordinary shares outstanding for diluted EPS 5,000 5,000 5,063 5,000 The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Convertible Notes 8,115 7,995 8,075 7,995 Restricted share equity awards 62 35 — 29 Future potentially dilutive ordinary shares excluded from diluted EPS 8,177 8,030 8,075 8,024 The ordinary shares issuable upon the conversion of the Convertible Notes, if converted, are excluded as the conditions necessary for conversion had not been satisfied as of the end of the reporting period. |
Functional Currency | Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three and nine months ended September 30, 2019, we recognized a net gain of approximately $0.1 million and $0.2 million, respectively, related to currency exchange rates. For the three and nine months ended September 30, 2018, we recognized net gain of approximately $0.1 million and a net loss of approximately $1.0 million, respectively, related to currency exchange rates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in the balance sheet principally due to the short-term nature or floating rate nature of these instruments. At September 30, 2019, the fair value of the 9.25% First Lien Notes and the Convertible Notes was approximately $339.5 million and $594.3 million, respectively, based on quoted market prices in a less active market, a Level 2 measurement. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards: We adopted ASU No. 2016-02, Leases (ASC 842) ASU No. 2018-11, "Leases - Targeted Improvements." Leases. n addition, we elected certain practical expedients, which permit us to not reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, and to not separate lease and non-lease components for all classes of underlying assets. As a lessee, we also made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet for all classes of underlying assets. Adoption of the new standard resulted in an increase in the Company’s assets and liabilities of approximately $9.2 million as of January 1, 2019. Our drilling contracts contain a lease component related to the underlying drilling equipment, in addition to the service component provided by our crews and our expertise to operate such drilling equipment. As outlined in ASU 2018-11, we have determined that the non-lease service component of our drilling contracts is the predominant element of the combined component and continue to account for the combined components as a single performance obligation under Topic 606, Revenue from Contracts with Customers. The bareboat charter contract on the recently acquired Soehanah |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses.” |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. Mobilization/Demobilization Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight ‑ Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Contract Termination Revenue. On June 20, 2019, VDEEP and VDDI entered into the Petrobras Agreement with the Petrobras Parties relating to the Petrobras Award (see “Note 9. Commitments and Contingencies” for additional information regarding the Petrobras Agreement and the Petrobras Award). For the nine months ended September 30, 2019, we recognized approximately $594.0 million in “Contract termination revenue” and $106.9 million in “Interest income” associated with the Payments (as defined in “Note 9. Commitments and Contingencies”) . Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We are generally considered a principal in such transactions and therefore, recognize reimbursable revenues and the corresponding costs as we provide the customer ‑ requested goods and services. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 23,265 $ 11,571 $ 324 $ 35,160 $ 22,427 $ 35,535 $ 307 $ 58,269 Charter lease revenue 1,288 — — 1,288 — — — — Amortized revenue 406 588 — 994 484 588 — 1,072 Reimbursable revenue 2,229 346 627 3,202 2,559 1,523 1,133 5,215 Total revenue $ 27,188 $ 12,505 $ 951 $ 40,644 $ 25,470 $ 37,646 $ 1,440 $ 64,556 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 64,382 $ 34,073 $ 725 $ 99,180 $ 62,127 $ 101,183 $ 912 $ 164,222 Contract termination revenue — 594,029 — 594,029 — — — — Charter lease revenue 3,173 — — 3,173 — — — — Amortized revenue 1,375 1,745 — 3,120 758 1,745 — 2,503 Reimbursable revenue 6,687 3,255 2,138 12,080 7,760 4,835 3,361 15,956 Total revenue $ 75,617 $ 633,102 $ 2,863 $ 711,582 $ 70,645 $ 107,763 $ 4,273 $ 182,681 Dayrate revenue and amortized revenue for Jackups and Deepwater are included within “Contract drilling services” in our Consolidated Statement of Operations. All other revenue, excluding “Contract termination revenue”, are included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days. We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities”, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: September 30, 2019 December 31, 2018 (unaudited, in thousands) Current contract cost assets $ 301 $ 774 Noncurrent contract cost assets 2,047 3,999 Current contract revenue liabilities 2,109 2,309 Noncurrent contract revenue liabilities 2,679 4,424 Significant changes in contract cost assets and contract revenue liabilities during the nine months ended September 30, 2019 are as follows: Contract Costs Contract Revenues (unaudited, in thousands) Balance as of December 31, 2018 $ 4,773 $ 6,733 Increase (decrease) due to contractual changes 774 3,201 Decrease due to recognition of revenue (3,199 ) (5,146 ) Balance as of September 30, 2019 (1) $ 2,348 $ 4,788 (1) We expect to recognize contract revenues of approximately $2.7 million during the remaining three months of 2019 and $2.1 million thereafter related to unsatisfied performance obligations existing as of September 30, 2019. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time of the future services. |
Leases | Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amounts of Assets and Liabilities of VIE | The carrying amount associated with ADVantage was as follows: September 30, 2019 December 31, 2018 (unaudited, in thousands) Assets $ 5,807 $ — Liabilities 5,444 — Net carrying amount $ 363 $ — |
Schedule of Reconciliation of Number of Shares Used for Basic and Diluted EPS Computations | The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Weighted average ordinary shares outstanding for basic EPS 5,000 5,000 5,047 5,000 Restricted share equity awards — — 16 — Adjusted weighted average ordinary shares outstanding for diluted EPS 5,000 5,000 5,063 5,000 |
Schedule of Number of Shares Excluded from Diluted EPS Computations | The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Convertible Notes 8,115 7,995 8,075 7,995 Restricted share equity awards 62 35 — 29 Future potentially dilutive ordinary shares excluded from diluted EPS 8,177 8,030 8,075 8,024 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated by Revenue | The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 23,265 $ 11,571 $ 324 $ 35,160 $ 22,427 $ 35,535 $ 307 $ 58,269 Charter lease revenue 1,288 — — 1,288 — — — — Amortized revenue 406 588 — 994 484 588 — 1,072 Reimbursable revenue 2,229 346 627 3,202 2,559 1,523 1,133 5,215 Total revenue $ 27,188 $ 12,505 $ 951 $ 40,644 $ 25,470 $ 37,646 $ 1,440 $ 64,556 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Jackups Deepwater Management Consolidated Jackups Deepwater Management Consolidated (unaudited, in thousands) Dayrate revenue $ 64,382 $ 34,073 $ 725 $ 99,180 $ 62,127 $ 101,183 $ 912 $ 164,222 Contract termination revenue — 594,029 — 594,029 — — — — Charter lease revenue 3,173 — — 3,173 — — — — Amortized revenue 1,375 1,745 — 3,120 758 1,745 — 2,503 Reimbursable revenue 6,687 3,255 2,138 12,080 7,760 4,835 3,361 15,956 Total revenue $ 75,617 $ 633,102 $ 2,863 $ 711,582 $ 70,645 $ 107,763 $ 4,273 $ 182,681 |
Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers | The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: September 30, 2019 December 31, 2018 (unaudited, in thousands) Current contract cost assets $ 301 $ 774 Noncurrent contract cost assets 2,047 3,999 Current contract revenue liabilities 2,109 2,309 Noncurrent contract revenue liabilities 2,679 4,424 |
Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities | Significant changes in contract cost assets and contract revenue liabilities during the nine months ended September 30, 2019 are as follows: Contract Costs Contract Revenues (unaudited, in thousands) Balance as of December 31, 2018 $ 4,773 $ 6,733 Increase (decrease) due to contractual changes 774 3,201 Decrease due to recognition of revenue (3,199 ) (5,146 ) Balance as of September 30, 2019 (1) $ 2,348 $ 4,788 (1) We expect to recognize contract revenues of approximately $2.7 million during the remaining three months of 2019 and $2.1 million thereafter related to unsatisfied performance obligations existing as of September 30, 2019. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Entity Owns Baker Marine Pacific Class 375 Jackup Rig | |
Schedule of Cost of Acquisition Allocated and Estimated Fair Values of Assets Acquired and Liabilities Assumed | Using the cost accumulation model, the cost of the acquisition was allocated to the assets acquired as follows: (in thousands) Total cash consideration (1) $ 85,000 Purchase price allocation: Soehanah rig and equipment 81,850 Inventory supplies and spare parts 3,150 Cash 913 Charterer deposit (913 ) Net assets acquired $ 85,000 (1) Includes $0.4 million of transaction costs. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (unaudited, in thousands) Classification in the Consolidated Statement of Operations Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost (1) Operating costs $ 1,480 $ 4,096 Operating lease cost (1) General and administrative 279 869 Sublease income Operating costs (124 ) (346 ) Sublease income General and administrative (76 ) (220 ) Total operating lease cost $ 1,559 $ 4,399 (1) Short-term lease costs were $0.3 million and $0.7 million during the three and nine months ended September 30, 2019, respectively. Operating cash flows used for operating leases approximates lease expense. |
Schedule of Operating Leases Included in Consolidated Balance Sheet | (unaudited, in thousands) Classification in the Consolidated Balance Sheet September 30, 2019 Assets: Operating lease assets Operating lease ROU assets $ 7,515 Total leased assets $ 7,515 Liabilities: Current operating Other current liabilities $ 4,209 Noncurrent operating Other long-term liabilities 3,656 Total lease liabilities $ 7,865 |
Schedule of Maturities of Operating Lease Liabilities | As of September 30, 2019, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining three months of 2019 $ 1,182 2020 4,031 2021 1,500 2022 1,316 2023 905 Thereafter - Total future lease payments $ 8,934 Less imputed interest (1,069 ) Present value of lease obligations $ 7,865 |
Schedule of Maturities of Lease Liabilities as Presented Under ASC Topic 840 | As of December 31, 2018, maturities of lease liabilities as presented under ASC Topic 840 were as follows: (unaudited, in thousands) Operating Leases 2019 $ 4,035 2020 3,465 2021 1,321 2022 1,313 2023 903 Thereafter - Total future minimum lease payments $ 11,037 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our debt was composed of the following, as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $6,830 and $7,560, respectively $ 343,170 $ 342,439 Convertible Notes, net of discount of $0 and $5,354, respectively 775,792 766,572 1,118,962 1,109,011 Less current maturities of long-term debt — — Long-term debt, net $ 1,118,962 $ 1,109,011 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Sales tax receivable $ 9,205 $ 10,145 Income tax receivable 1,697 874 Prepaid insurance 1,026 660 Other receivables 1,948 1,634 Current deferred contract costs 301 774 Other 5,147 3,191 $ 19,324 $ 17,278 |
Property and Equipment, Net | Property and equipment, net, consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Drilling equipment $ 963,649 $ 962,618 Assets under construction 19,484 13,969 Office and technology equipment 18,452 18,452 Leasehold improvements 1,124 1,100 1,002,709 996,139 Accumulated depreciation (263,778 ) (208,836 ) Property and equipment, net $ 738,931 $ 787,303 |
Other Assets | Other assets consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Noncurrent restricted cash $ 4,778 $ 4,058 Contract value, net — 1,643 Deferred certification costs 3,738 3,548 Noncurrent deferred contract costs 2,047 3,999 Deferred income taxes 1,787 1,844 Other noncurrent assets 1,120 934 $ 13,470 $ 16,026 |
Other Current Liabilities | Other current liabilities consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Interest $ 14,182 $ 2,827 Compensation 7,760 7,013 Income taxes payable 7,803 3,175 Current deferred revenue 2,109 2,309 Current portion of operating lease liabilities 4,209 — Other 3,204 2,659 $ 39,267 $ 17,983 |
Long-term Liabilities | Long-term liabilities consisted of the following as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Noncurrent deferred revenue $ 2,679 $ 4,424 Deferred income taxes 722 720 2016 MIP 12,618 11,565 Noncurrent operating lease liabilities 3,656 — Other non-current liabilities 5,751 6,180 $ 25,426 $ 22,889 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheet that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Cash and cash equivalents $ 814,724 $ 224,967 Restricted cash 5,637 10,362 Restricted cash included within Other Assets 4,778 4,058 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 825,139 $ 239,387 |
Consolidated Balance Sheet Balances Payable to Former Parent Company | The following table summarizes the balances payable to VDC included in the Company's Consolidated Balance Sheet as of the dates indicated: September 30, 2019 December 31, 2018 (unaudited, in thousands) Accounts payable to related parties, net $ 17,278 $ 17,278 $ 17,278 $ 17,278 |
Business Segment and Signific_2
Business Segment and Significant Customer Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Country | Our revenue by country was as follows for the periods indicated (periods representing revenues of less than 10% are included in Other countries): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (unaudited, in thousands) Cayman Islands $ — $ — $ 561,530 $ — Congo 7,807 35,939 — 107,666 India 9,374 9,618 — 24,991 Cameroon — 7,500 — — Gabon 7,901 — — — Qatar 5,560 — — — Malaysia 4,632 — — — Other countries (1) 5,370 11,499 150,052 50,024 Total revenues $ 40,644 $ 64,556 $ 711,582 $ 182,681 ( 1 ) Other countries represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Schedule of Property and Equipment, Net by Country | Our property and equipment, net by country was as follows as of the dates indicated (as of dates representing property and equipment of less than 10% are included in Other countries): September 30, 2019 December 31, 2018 (unaudited, in thousands) Egypt $ 210,992 $ — Canary Islands — 216,955 India 129,916 141,342 Indonesia 77,335 81,850 South Africa 152,983 164,239 Other countries (1) 167,705 182,917 Total property and equipment $ 738,931 $ 787,303 ( 1 ) Other countries represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |
Organization and Recent Events
Organization and Recent Events - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Jul. 08, 2019 |
9.25% First Lien Notes | ||
Organization And Recent Events [Line Items] | ||
Debt repurchase, maximum permissible limit | $ 75,000,000 | |
ADVantage | Vantage | ||
Organization And Recent Events [Line Items] | ||
Joint venture, ownership percentage | 51.00% | |
ADVantage | ADES | ||
Organization And Recent Events [Line Items] | ||
Joint venture, ownership percentage | 49.00% |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Carrying Amounts of Assets and Liabilities of VIE (Detail) - ADVantage $ in Thousands | Sep. 30, 2019USD ($) |
Variable Interest Entity [Line Items] | |
Assets | $ 5,807 |
Liabilities | 5,444 |
Net carrying amount | $ 363 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2019 | Apr. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Feb. 10, 2016 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Net gain (loss) on sale or retirement of assets | $ 0 | $ (1,200,000) | $ (109,000) | $ 1,313,000 | |||||
Decrease the net book value of property and equipment | $ 2,000,000,000 | ||||||||
Capitalized interest | 0 | 0 | |||||||
Recognition of amortization expense of intangible assets | 1,643,000 | 4,721,000 | |||||||
Allowance for doubtful accounts on trade receivables | 0 | 0 | $ 0 | ||||||
Foreign currency transaction gain (loss) | 100,000 | 100,000 | 200,000 | (1,000,000) | |||||
ASU No. 2016-02 | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Adoption of new standard resulted in an increase in assets and liabilities | $ 9,200,000 | ||||||||
9.25% First Lien Notes | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Fair value of notes outstanding | 339,500,000 | 339,500,000 | |||||||
Convertible Notes | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Fair value of notes outstanding | $ 594,300,000 | $ 594,300,000 | |||||||
Minimum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Term of customer invoice payment | 30 days | ||||||||
Maximum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Term of customer invoice payment | 45 days | ||||||||
Drilling Equipment | Purchase and Sale Agreement | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Purchase price of assets | $ 13,000,000 | ||||||||
Drilling Equipment | Minimum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, initial useful lives | 5 years | ||||||||
Drilling Equipment | Maximum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, initial useful lives | 35 years | ||||||||
Office and Technology Equipment | Minimum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, initial useful lives | 3 years | ||||||||
Office and Technology Equipment | Maximum | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, initial useful lives | 7 years | ||||||||
Vantage 260 | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Identifiable intangible assets | $ 12,600,000 | ||||||||
Intangible asset being amortized over a straight-line basis of drilling contract | 2 years | ||||||||
Intangible asset expiration date for drilling contract | 2019-04 | ||||||||
Recognition of amortization expense of intangible assets | $ 1,600,000 | $ 1,600,000 | $ 4,700,000 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Reconciliation of Number of Shares Used For Basic and Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Weighted average ordinary shares outstanding for basic EPS | 5,000 | 5,000 | 5,047 | 5,000 |
Adjusted weighted average ordinary shares outstanding for diluted EPS | 5,000 | 5,000 | 5,063 | 5,000 |
Restricted Shares Equity Award | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Restricted share equity awards | 16 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Number of Shares Excluded from Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 8,177 | 8,030 | 8,075 | 8,024 |
Convertible Notes | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 8,115 | 7,995 | 8,075 | 7,995 |
Restricted Shares Equity Award | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 62 | 35 | 29 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 40,644 | $ 64,556 | $ 711,582 | $ 182,681 |
Interest income | $ 4,245 | $ 533 | $ 113,614 | $ 974 |
Minimum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Term of customer invoice payment | 30 days | |||
Maximum | ||||
Disaggregation Of Revenue [Line Items] | ||||
Term of customer invoice payment | 45 days | |||
Contract Termination Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 594,029 | |||
Petrobras Parties | ||||
Disaggregation Of Revenue [Line Items] | ||||
Interest income | $ 106,900 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated by Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 40,644 | $ 64,556 | $ 711,582 | $ 182,681 |
Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 27,188 | 25,470 | 75,617 | 70,645 |
Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 12,505 | 37,646 | 633,102 | 107,763 |
Management | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 951 | 1,440 | 2,863 | 4,273 |
Dayrate Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 35,160 | 58,269 | 99,180 | 164,222 |
Dayrate Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 23,265 | 22,427 | 64,382 | 62,127 |
Dayrate Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 11,571 | 35,535 | 34,073 | 101,183 |
Dayrate Revenue | Management | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 324 | 307 | 725 | 912 |
Charter Lease Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,288 | 3,173 | ||
Charter Lease Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,288 | 3,173 | ||
Amortized Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 994 | 1,072 | 3,120 | 2,503 |
Amortized Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 406 | 484 | 1,375 | 758 |
Amortized Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 588 | 588 | 1,745 | 1,745 |
Reimbursable Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,202 | 5,215 | 12,080 | 15,956 |
Reimbursable Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,229 | 2,559 | 6,687 | 7,760 |
Reimbursable Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 346 | 1,523 | 3,255 | 4,835 |
Reimbursable Revenue | Management | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 627 | $ 1,133 | 2,138 | $ 3,361 |
Contract Termination Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 594,029 | |||
Contract Termination Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 594,029 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Current contract cost assets | $ 301 | $ 774 |
Noncurrent contract cost assets | 2,047 | 3,999 |
Current contract revenue liabilities | 2,109 | 2,309 |
Noncurrent contract revenue liabilities | $ 2,679 | $ 4,424 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Revenue From Contract With Customer [Abstract] | ||
Beginning balance, contract costs | $ 4,773 | |
Increase (decrease) due to contractual changes, contract costs | 774 | |
Decrease due to recognition of revenue, contract costs | (3,199) | |
Ending balance, contract costs | 2,348 | [1] |
Beginning balance, contract revenues | 6,733 | |
Increase (decrease) due to contractual changes, contract revenues | 3,201 | |
Decrease due to recognition of revenue, contract revenues | (5,146) | |
Ending balance, contract revenues | $ 4,788 | [1] |
[1] | We expect to recognize contract revenues of approximately $2.7 million during the remaining three months of 2019 and $2.1 million thereafter related to unsatisfied performance obligations existing as of September 30, 2019. |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Parenthetical) (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 2.7 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 2.1 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 13, 2018 | Feb. 26, 2018 | Apr. 30, 2017 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||||
Payment made in connection with agreement | $ 15,000 | |||||
Entity Owns Baker Marine Pacific Class 375 Jackup Rig | Share Purchase Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price of assets net of transaction costs | $ 84,600 | |||||
Payment made in connection with agreement | $ 69,600 | 15,000 | ||||
Purchase price of assets | [1] | $ 85,000 | ||||
Vantage 260 | Purchase and Sale Agreement | Drilling Equipment | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price of assets | $ 13,000 | |||||
Proceeds from sale of assets | $ 5,100 | |||||
[1] | Includes $0.4 million of transaction costs. |
Acquisitions - Schedule of Cost
Acquisitions - Schedule of Cost of Acquisition Allocated and Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Entity Owns Baker Marine Pacific Class 375 Jackup Rig - Share Purchase Agreement $ in Thousands | Jun. 13, 2018USD ($) | |
Business Acquisition [Line Items] | ||
Total cash consideration | $ 85,000 | [1] |
Purchase price allocation: | ||
Soehanah rig and equipment | 81,850 | |
Inventory supplies and spare parts | 3,150 | |
Cash | 913 | |
Charterer deposit | (913) | |
Net assets acquired | $ 85,000 | |
[1] | Includes $0.4 million of transaction costs. |
Acquisitions - Schedule of Co_2
Acquisitions - Schedule of Cost of Acquisition Allocated and Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) $ in Millions | Jun. 13, 2018USD ($) |
Entity Owns Baker Marine Pacific Class 375 Jackup Rig | Share Purchase Agreement | |
Business Acquisition [Line Items] | |
Transaction costs | $ 0.4 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | ||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | $ 1,559 | $ 4,399 | |
Operating Costs | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 1,480 | 4,096 |
Sublease income | (124) | (346) | |
General and Administrative | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 279 | 869 |
Sublease income | $ (76) | $ (220) | |
[1] | Short-term lease costs were $0.3 million and $0.7 million during the three and nine months ended September 30, 2019, respectively. Operating cash flows used for operating leases approximates lease expense. |
Leases - Components of Lease _2
Leases - Components of Lease Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Short term lease costs | $ 0.3 | $ 0.7 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Included in Consolidated Balance Sheet (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Assets: | |
Operating lease assets | $ 7,515 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseRightOfUseAsset |
Liabilities: | |
Current operating | $ 4,209 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Noncurrent operating | $ 3,656 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurrent |
Total lease liabilities | $ 7,865 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remaining three months of 2019 | $ 1,182 |
2020 | 4,031 |
2021 | 1,500 |
2022 | 1,316 |
2023 | 905 |
Total future lease payments | 8,934 |
Less imputed interest | (1,069) |
Present value of lease obligations | $ 7,865 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Weighted average discount rate for operating leases | 9.25% |
Weighted average remaining lease term for operating leases | 2 years 8 months 12 days |
ROU assets obtained in exchange of operating lease liability | $ 0.7 |
Receive Lease payments | $ 1.3 |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Lease Liabilities as Presented Under ASC Topic 840 (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 4,035 |
2020 | 3,465 |
2021 | 1,321 |
2022 | 1,313 |
2023 | 903 |
Total future minimum lease payments | $ 11,037 |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,118,962 | $ 1,109,011 |
Long-term debt, net | 1,118,962 | 1,109,011 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 343,170 | 342,439 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 775,792 | $ 766,572 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 6,830 | $ 7,560 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Debt discount | $ 0 | $ 5,354 |
Debt - 9% First Lien Notes - Ad
Debt - 9% First Lien Notes - Additional Information (Detail) - USD ($) | Jul. 08, 2019 | Jun. 21, 2019 | Nov. 30, 2018 | Sep. 30, 2019 |
Petrobras Award | VDEEP | ||||
Debt Instrument [Line Items] | ||||
Damages awarded, aggregate amount | $ 690,800,000 | |||
Petrobras Award | VDDI | ||||
Debt Instrument [Line Items] | ||||
Damages awarded, aggregate amount | $ 10,100,000 | |||
9.25% First Lien Notes | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 350,000,000 | |||
Debt instrument, interest rate | 9.25% | |||
Debt instrument, maturity date | Nov. 15, 2023 | |||
Debt instrument, payment terms | interest from the date of their issuance at the rate of 9.25% per year. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months and is payable semi-annually in arrears, commencing on May 15, 2019 | |||
Letters of credit | $ 9,600,000 | |||
Debt repurchase, maximum permissible limit | $ 75,000,000 | |||
Debt purchase price as percentage of principal amount | 100.00% | |||
Tender to purchase | $ 0 | |||
9.25% First Lien Notes | New Letter of Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
9.25% First Lien Notes | First Payment [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 50,000,000 |
Debt - Convertible Notes - Addi
Debt - Convertible Notes - Additional Information (Detail) - Convertible Notes - USD ($) | Feb. 10, 2016 | Dec. 03, 2015 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Shares issued for convertible notes | 4,344,959 | ||
Pre-petition secured debt claims | $ 2,500,000,000 | ||
Convertible notes | $ 750,000,000 | ||
Debt instrument, maturity date | Dec. 31, 2030 | ||
Debt conversion of shares to be issued | 8,100,000 | ||
Debt instrument estimated fair value | $ 603,100,000 | ||
Debt instrument, payment terms | Interest is computed on the basis of a 360-day year comprised of twelve 30-day months at a rate of 1.0% per annum for the first four years and then increasing to 12.0% per annum until maturity | ||
Interest rate per annum for the first four years | 1.00% | ||
Interest rate per annum until maturity | 12.00% | ||
Minimum affirmative vote percentage | 75.00% | ||
Percentage of repurchase of convertible notes | 101.00% | ||
Ordinary Shares | |||
Debt Instrument [Line Items] | |||
Convertible notes | $ 95.60 | ||
Number of share embedded in each note holder units | 1 | ||
Convertible notes payable | $ 178.55 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 9 Months Ended | |||
Sep. 30, 2019USD ($)Director$ / sharesshares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018$ / sharesshares | Feb. 10, 2016shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | ||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Ordinary shares, shares issued | 5,000,053 | 5,000,053 | 5,000,053 | |
Ordinary shares, shares outstanding | 5,000,053 | 5,000,053 | ||
Number of shares granted | 0 | |||
Number of directors, shares granted | Director | 4 | |||
Share based compensation expense | $ | $ 1,100,000 | $ 7,700,000 | ||
Performance-Based Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Terms of award | TBGs granted under the 2016 Amended MIP vest annually, ratably over four years; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the Effective Date. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. | |||
Share based compensation expense | $ | $ 0 | |||
Performance-Based Restricted Stock Units | Employee | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 2,403 | |||
Performance-Based Restricted Stock Units | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting period | 7 years | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of previously granted shares vested in period | 18,889 | |||
Restricted Stock | Employee | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 1,030 | |||
Restricted Stock | Director | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 1,200 | |||
Number of shares granted to each director | 300 | |||
Restricted Stock | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Award vesting period | 4 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Income Tax Contingency [Line Items] | |
Open tax year | 2010 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) R$ in Millions | May 22, 2019USD ($) | Feb. 13, 2019USD ($) | Jul. 02, 2018USD ($) | Apr. 27, 2018USD ($)Defendant | Apr. 27, 2018BRL (R$)Defendant | Sep. 30, 2019 | Jun. 20, 2019USD ($) | Jan. 10, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||
Excess of unspecified claims | $ 2,000,000,000 | |||||||
Drilling Contract Arbitration | Petrobras Parties | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | $ 734,000,000 | $ 622,000,000 | ||||||
Annual interest rate on foregoing award amount | 15.20% | |||||||
Loss contingency, settlement agreement, terms | The tribunal also awarded the Company interest on the foregoing award amount at an annual rate of 15.2%, compounded monthly, to accrue from (i) April 1, 2018, with respect to $615.6 million thereof, (ii) October 20, 2015, with respect to $5.2 million thereof, and (iii) November 19, 2015, with respect to $1.2 million thereof, in each case, until final payment of the Petrobras Award. | |||||||
Aggregate fees and expenses of tribunal, including compensation of arbitrators | $ 1,500,000 | |||||||
Contingency fee | 10.00% | |||||||
Drilling Contract Arbitration | Petrobras Parties | Interest Accrued From April 1, 2018 | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | 615,600,000 | |||||||
Drilling Contract Arbitration | Petrobras Parties | Interest Accrued From October 20, 2015 | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | 5,200,000 | |||||||
Drilling Contract Arbitration | Petrobras Parties | Interest Accrued From November 19, 2015 | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | $ 1,200,000 | |||||||
Drilling Contract Arbitration | PVIS | Petrobras Agreement | VDEEP | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | $ 690,810,875 | |||||||
Percentage decrease in settlement payment agreed by other party | 4.50% | |||||||
Drilling Contract Arbitration | PAI | Petrobras Agreement | VDDI | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded, aggregate amount | $ 10,128,565 | |||||||
Percentage decrease in settlement payment agreed by other party | 4.50% | |||||||
Brazil Improbity Action | Brazil | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allegations - description | On April 27, 2018, the Company was added as an additional defendant in a legal proceeding initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Drilling Contract, with the Brazilian Government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefitted from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin-Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. | |||||||
Loss contingency, damages claimed | $ 31,000,000 | R$ 102.8 | ||||||
Court authorization to seizure and freezing assets of defendants | $ 124,000,000 | |||||||
Loss contingency, number of defendants | Defendant | 3 | 3 | ||||||
Loss contingency, actions taken by court | On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the U.S. Department of Justice pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against our U.S. assets in the amount of $124.0 million | |||||||
Brazil Improbity Action | United States | ||||||||
Loss Contingencies [Line Items] | ||||||||
Court authorization to seizure and freezing assets of defendants | $ 124,000,000 |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Sales tax receivable | $ 9,205 | $ 10,145 |
Income tax receivable | 1,697 | 874 |
Prepaid insurance | 1,026 | 660 |
Other receivables | 1,948 | 1,634 |
Current deferred contract costs | 301 | 774 |
Other | 5,147 | 3,191 |
Prepaid expenses and other current assets | $ 19,324 | $ 17,278 |
Supplemental Financial Inform_4
Supplemental Financial Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 1,002,709 | $ 996,139 |
Accumulated depreciation | (263,778) | (208,836) |
Property and equipment, net | 738,931 | 787,303 |
Drilling Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 963,649 | 962,618 |
Assets under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 19,484 | 13,969 |
Office and Technology Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 18,452 | 18,452 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 1,124 | $ 1,100 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Noncurrent restricted cash | $ 4,778 | $ 4,058 |
Contract value, net | 1,643 | |
Deferred certification costs | 3,738 | 3,548 |
Noncurrent deferred contract costs | 2,047 | 3,999 |
Deferred income taxes | 1,787 | 1,844 |
Other noncurrent assets | 1,120 | 934 |
Total other assets | $ 13,470 | $ 16,026 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Interest | $ 14,182 | $ 2,827 |
Compensation | 7,760 | 7,013 |
Income taxes payable | 7,803 | 3,175 |
Current deferred revenue | 2,109 | 2,309 |
Current portion of operating lease liabilities | 4,209 | |
Other | 3,204 | 2,659 |
Other current liabilities | $ 39,267 | $ 17,983 |
Supplemental Financial Inform_7
Supplemental Financial Information - Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Liabilities Noncurrent [Abstract] | ||
Noncurrent deferred revenue | $ 2,679 | $ 4,424 |
Deferred income taxes | 722 | 720 |
2016 MIP | 12,618 | 11,565 |
Noncurrent operating lease liabilities | 3,656 | |
Other non-current liabilities | 5,751 | 6,180 |
Long-term liabilities | $ 25,426 | $ 22,889 |
Supplemental Financial Inform_8
Supplemental Financial Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 814,724 | $ 224,967 |
Restricted cash | 5,637 | 10,362 |
Restricted cash included within Other Assets | $ 4,778 | $ 4,058 |
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 825,139 | $ 239,387 |
Supplemental Financial Inform_9
Supplemental Financial Information - Consolidated Balance Sheet Balances Payable to Former Parent Company (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Accounts payable to related parties, net | $ 17,278 | $ 17,278 |
Total payable to related parties | $ 17,278 | $ 17,278 |
Supplemental Financial Infor_10
Supplemental Financial Information - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Line Items] | ||
Due to related parties | $ 17,278,000 | $ 17,278,000 |
Accounts payable to related parties | 17,278,000 | $ 17,278,000 |
ADES | ||
Supplemental Financial Information [Line Items] | ||
Accounts receivable from related parties | 4,000,000 | |
Accounts payable to related parties | 3,600,000 | |
ADES | Other Current Liabilities | ||
Supplemental Financial Information [Line Items] | ||
Due to related parties | $ 691,000 |
Business Segment and Signific_3
Business Segment and Significant Customer Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019Customer | Sep. 30, 2018Customer | Sep. 30, 2019SegmentCustomer | Sep. 30, 2018Customer | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Number of customers accounted for revenues | 4 | 4 | 3 | |
Excluding Contract Termination Revenue | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Number of customers accounted for revenues | 4 | |||
Product Concentration Risk | Maximum | Sales | Construction Supervision Services | Ultra Deep Water Drillship | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 1.00% | 1.00% | 1.00% | 1.00% |
Customer Concentration Risk | Sales | Customer One | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 34.00% | 43.00% | 45.00% | |
Customer Concentration Risk | Sales | Customer Two | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 23.00% | 15.00% | 14.00% | |
Customer Concentration Risk | Sales | Customer Three | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 14.00% | 12.00% | 14.00% | |
Customer Concentration Risk | Sales | Customer Four | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 11.00% | 12.00% | ||
Customer Concentration Risk | Sales | Contract Termination Revenue | Petrobras Parties | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 83.00% | |||
Customer Concentration Risk | Sales | Excluding Contract Termination Revenue | Customer One | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 26.00% | |||
Customer Concentration Risk | Sales | Excluding Contract Termination Revenue | Customer Two | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 24.00% | |||
Customer Concentration Risk | Sales | Excluding Contract Termination Revenue | Customer Three | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 14.00% | |||
Customer Concentration Risk | Sales | Excluding Contract Termination Revenue | Customer Four | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 12.00% |
Business Segment and Signific_4
Business Segment and Significant Customer Information - Summary of Revenue by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | $ 40,644 | $ 64,556 | $ 711,582 | $ 182,681 | |
Cayman Islands | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 561,530 | ||||
Congo | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 7,807 | 35,939 | 107,666 | ||
India | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 9,374 | 9,618 | 24,991 | ||
Cameroon | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 7,500 | ||||
Gabon | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 7,901 | ||||
Qatar | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 5,560 | ||||
Malaysia | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 4,632 | ||||
Other countries | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | [1] | $ 5,370 | $ 11,499 | $ 150,052 | $ 50,024 |
[1] | Other countries represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Business Segment and Signific_5
Business Segment and Significant Customer Information - Schedule of Property and Equipment, Net by Country (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | $ 738,931 | $ 787,303 | |
Egypt | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 210,992 | ||
Canary Islands | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 216,955 | ||
India | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 129,916 | 141,342 | |
Indonesia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 77,335 | 81,850 | |
South Africa | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 152,983 | 164,239 | |
Other countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | [1] | $ 167,705 | $ 182,917 |
[1] | Other countries represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |