Paragon Offshore (PGNPQ) 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Entity [Abstract]
Entity Registrant Name	Paragon Offshore plc
Entity Central Index Key	1,594,590
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		87,894,997

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Contract drilling services	$ 116,674	$ 338,710	$ 516,182	$ 1,101,618
Labor contract drilling services	4,517	6,853	16,750	21,224
Reimbursables and other	3,887	23,410	42,201	70,023
Total operating revenues	125,078	368,973	575,133	1,192,865
Operating costs and expenses
Contract drilling services	85,109	190,536	289,446	612,610
Labor contract drilling services	4,966	4,792	14,218	16,086
Reimbursables	2,778	19,517	35,870	58,173
Depreciation and amortization	50,270	95,826	181,732	280,574
General and administrative	11,464	12,800	33,459	41,901
Loss on impairments	0	1,150,846	0	1,152,547
(Gain) on sale of assets, net	0	0	0	(12,717)
(Gain) on repurchase of long-term debt	0	0	0	(4,345)
Total operating costs and expenses	154,587	1,474,317	554,725	2,144,829
Operating income (loss) before interest, reorganization items and income taxes	(29,509)	(1,105,344)	20,408	(951,964)
Interest expense, net (contractual interest of $36,610 and $103,729 for the three and nine months ended September 30, 2016)	(18,446)	(33,900)	(58,299)	(93,107)
Other, net	2,804	(983)	1,512	1,421
Reorganization items, net	(17,211)	0	(56,602)	0
Loss before income taxes	(62,362)	(1,140,227)	(92,981)	(1,043,650)
Income tax benefit (provision)	(1,256)	55,389	(956)	67,301
Net loss	(63,618)	(1,084,838)	(93,937)	(976,349)
Net income attributable to non-controlling interest	0	0	0	(31)
Net loss attributable to Paragon	$ (63,618)	$ (1,084,838)	$ (93,937)	$ (976,380)
Loss per share
Basic and diluted (in dollars per share)	$ (0.72)	$ (12.46)	$ (1.08)	$ (11.39)
Weighted-average shares outstanding
Basic and diluted (in shares)	87,876	87,077	87,360	85,703

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Income Statement [Abstract]
Contractual interest	$ 36,610	$ 103,729

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (63,618)	$ (1,084,838)	$ (93,937)	$ (976,349)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(8,919)	(5,145)	(768)	(6,818)
Adjustments to pension plans	69	190	455	570
Total other comprehensive loss, net	(8,850)	(4,955)	(313)	(6,248)
Total comprehensive loss	$ (72,468)	$ (1,089,793)	$ (94,250)	$ (982,597)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 879,963	$ 773,571
Restricted cash	26,047	3,000
Accounts receivable, net of allowance for doubtful accounts of $34 million and $44 million as of September 30, 2016 and December 31, 2015, respectively	138,121	266,325
Prepaid and other current assets	73,730	110,027
Total current assets	1,117,861	1,152,923
Property and equipment, at cost	2,687,308	2,652,537
Accumulated depreciation	(1,714,751)	(1,541,439)
Property and equipment, net	972,557	1,111,098
Restricted cash	36,249	25,030
Other long-term assets	42,041	73,796
Total assets	2,168,708	2,362,847
Current liabilities
Current maturities of long-term debt	30,659	40,629
Accounts payable and accrued expenses	69,665	85,374
Accrued payroll and related costs	39,570	48,246
Taxes payable	30,930	34,381
Interest payable	400	34,085
Other current liabilities	32,800	41,174
Total current liabilities	204,024	283,889
Long-term debt	178,500	2,538,444
Deferred income taxes	5,188	9,373
Other liabilities	30,937	37,731
Liabilities subject to compromise	2,343,963	0
Total liabilities	2,762,612	2,869,437
Commitments and contingencies
Equity
Ordinary shares, $0.01 par value, 186,457,393 shares authorized; with 87,894,997 and 86,026,247 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	879	860
Additional paid-in capital	1,436,373	1,429,456
Accumulated deficit	(1,988,829)	(1,894,892)
Accumulated other comprehensive loss	(42,327)	(42,014)
Total shareholders’ deficit	(593,904)	(506,590)
Total liabilities and equity	$ 2,168,708	$ 2,362,847

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 34	$ 44
Ordinary shares
Par value (in dollars per share)	$ 0.01	$ 0.01
Shares authorized (in shares)	186,457,393	186,457,393
Shares issued (in shares)	87,894,997	86,026,247
Shares outstanding (in shares)	87,894,997	86,026,247

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity/ (Deficit)	Non-Controlling Interest
Balance (in shares) at Dec. 31, 2014		84,753,000
Beginning of period at Dec. 31, 2014	$ 494,249	$ 848	$ 1,423,153	$ (895,249)	$ (37,144)	$ 491,608	$ 2,641
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(976,349)			(976,380)		(976,380)	31
Adjustments to distribution by former parent	(9,493)		(9,493)			(9,493)
Employee related equity activity:
Amortization of share-based compensation	12,791		12,791			12,791
Vesting of restricted stock unit awards (in shares)		1,273,000
Vesting of restricted stock unit awards	(768)	$ 12	(780)			(768)
Acquisition of Prospector non-controlling interest	(2,185)		487			487	(2,672)
Other comprehensive loss, net	(6,248)				(6,248)	(6,248)
Balance (in shares) at Sep. 30, 2015		86,026,000
End of period at Sep. 30, 2015	$ (488,003)	$ 860	1,426,158	(1,871,629)	(43,392)	(488,003)	0
Balance (in shares) at Dec. 31, 2015	86,026,247	86,026,000
Beginning of period at Dec. 31, 2015	$ (506,590)	$ 860	1,429,456	(1,894,892)	(42,014)	(506,590)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(93,937)			(93,937)		(93,937)
Employee related equity activity:
Amortization of share-based compensation	7,066		7,066			7,066
Vesting of restricted stock unit awards (in shares)		1,869,000
Vesting of restricted stock unit awards	(130)	$ 19	(149)			(130)
Other comprehensive loss, net	$ (313)				(313)	(313)
Balance (in shares) at Sep. 30, 2016	87,894,997	87,895,000
End of period at Sep. 30, 2016	$ (593,904)	$ 879	$ 1,436,373	$ (1,988,829)	$ (42,327)	$ (593,904)	$ 0

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net loss	$ (93,937)	$ (976,349)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization	181,732	280,574
Loss on impairments	0	1,152,547
Gain on sale of assets	0	(12,717)
Gain on repurchase of long-term debt	0	(4,345)
Deferred income taxes	5,208	(70,149)
Share-based compensation	7,973	12,937
Provision for doubtful accounts	0	26,479
Recoveries of doubtful accounts	(5,878)	0
Other, net	1,255	0
Net change in other assets and liabilities	148,283	(22,226)
Net cash provided by operating activities	244,636	386,751
Cash flows from investing activities
Capital expenditures	(36,201)	(156,753)
Change in accrued capital expenditures	(8,612)	(11,768)
Proceeds from sale of assets	0	29,316
Acquisition of Prospector Offshore Drilling S.A. non-controlling interest	0	(2,185)
Change in restricted cash	(34,266)	(17,297)
Net cash used in investing activities	(79,079)	(158,687)
Cash flows from financing activities
Net Activity – Revolving Credit Facility	0	11,000
Additional Borrowings - Revolving Credit Facility	0	532,000
Net proceeds from Sale-Leaseback Financing	0	291,576
Repayments on Sale-Leaseback Financing	(59,165)	(8,365)
Repayment of Term Loan Facility	0	(4,875)
Purchase of Senior Notes	0	(6,546)
Net cash used in financing activities	(59,165)	448,124
Net change in cash and cash equivalents	106,392	676,188
Cash and cash equivalents, beginning of period	773,571	56,772
Cash and cash equivalents, end of period	879,963	732,960
Line of Credit
Cash flows from financing activities
Repayment of Prospector debt	0	(265,666)
Callable Bond
Cash flows from financing activities
Repayment of Prospector debt	$ 0	$ (101,000)

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, BASIS OF PRESENTATION AND CURRENT EVENTS	ORGANIZATION, BASIS OF PRESENTATION AND CURRENT EVENTS Paragon Offshore plc (together with its subsidiaries, “Paragon,” the “Company,” “we,” “us” or “our”) is a global provider of offshore drilling rigs. Our operated fleet includes 34 jackups (including two high specification heavy duty/harsh environment jackups), four drillships and two semisubmersibles. Our primary business is contracting our rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for our exploration and production customers on a dayrate basis around the world. We operate in significant hydrocarbon-producing geographies throughout the world, including the North Sea, the Middle East, India, Brazil, Mexico, West Africa and Southeast Asia. As of September 30, 2016 , our contract backlog was $365 million and included contracts with leading national, international and independent oil and gas companies. We are a public limited company registered under the Companies Act 2006 of England. In July 2014, Noble Corporation plc (“Noble”) transferred to us the assets and liabilities (the “Separation”) constituting most of Noble’s standard specification drilling units and related assets, liabilities and business (our “Predecessor”). On August 1, 2014, Noble made a pro rata distribution to its shareholders of all of our issued and outstanding ordinary shares (the “Distribution” and, collectively with the Separation, the “Spin-Off”). Basis of Presentation All financial information presented in this Form 10-Q represents the consolidated results of operations, financial position and cash flows of Paragon. At the Spin-Off, Noble contributed its entire net parent investment in our Predecessor. Concurrent with the Spin-Off and in accordance with the terms of our Separation from Noble, certain assets and liabilities were transferred between us and Noble, which have been recorded as part of the net capital contributed by Noble. During the first quarter of 2015, we recorded an out-of-period adjustment to the opening balance sheet of our Predecessor of approximately $9 million to reflect transfers of fixed assets resulting from the Spin-Off between us and our former parent, as well as revisions in estimates of liabilities associated with the Spin-Off. This adjustment did not affect our Condensed Consolidated Statement of Operations. On November 17, 2014, we initiated the acquisition of the outstanding shares of Prospector, an offshore drilling company organized in Luxembourg and traded on the Oslo Axess, from certain shareholders and in open market purchases. On February 23, 2015, we acquired all remaining issued and outstanding shares of Prospector. We spent approximately $2 million in the first quarter of 2015 to purchase the remaining issued and outstanding shares of Prospector and funded the purchase using proceeds from our Revolving Credit Facility and cash on hand. Unaudited Interim Information The interim consolidated financial statements of Paragon and its subsidiaries are unaudited. However, they include all adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair statement of the Company’s consolidated financial position as of September 30, 2016 and the results of its operations and cash flows for the three and nine months ended September 30, 2016 and 2015 . Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC regarding interim financial reporting. The 2015 year-end balance sheet data was derived from audited financial statements This interim report does not include all disclosures required by U.S. GAAP for annual periods and should be read in conjunction with the Annual Report on Form 10-K of Paragon Offshore plc for the year ended December 31, 2015. The interim financial results may not be indicative of the results to be expected for the full year. Certain amounts in prior periods have been reclassified to conform to the current year presentation. Going Concern The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon our development of a plan of reorganization, approval of the plan by the Bankruptcy Court and our creditors, and our ability to successfully implement a plan of reorganization. This represents a material uncertainty related to events and conditions that raises substantial doubt on our ability to continue as a going concern and, therefore, we may be unable to realize our assets and discharge our liabilities in the normal course of business. During the period that we are operating as debtors-in-possession under chapter 11 of the Bankruptcy Code, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business (and subject to restrictions in our debt agreements), for amounts other than those reflected in the accompanying consolidated financial statements. Further, any reorganization plan could materially change the amounts and classifications of assets and liabilities reported in the consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should we be unable to continue as a going concern. Chapter 11 Filing On February 12, 2016, the Debtors entered into a plan support agreement (the “PSA”) relating to a plan of reorganization (the “Plan”) pursuant to chapter 11 of the Bankruptcy Code with holders (the “Noteholder Group”) representing an aggregate of 77% of the outstanding $457 million of our 6.75% senior unsecured notes maturing July 2022 (the “2022 Senior Notes”) and the outstanding $527 million of our 7.25% senior unsecured notes maturing August 2024 (the “2024 Senior Notes”) together with lenders (the “Revolver Group”) representing an aggregate of 96% of the amounts outstanding (including letters of credit) under our Revolving Credit Agreement. On February 14, 2016, the Debtors filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court (the “Bankruptcy cases”). On April 6, 2016, the Bankruptcy Court approved the Company’s disclosure statement, which included a revised plan. On August 5, 2016, we reached an agreement in principle with an ad hoc committee of the holders of our Senior Notes (“Noteholders”) and a steering committee of the lenders under the Revolving Credit Facility (“Revolver Lenders”) for a proposed amendment to the PSA (the “PSA Amendment”), which among other things, provides for an extension of certain milestone dates and contains amendments to the Plan and disclosure statement. Additionally, on August 5, 2016, the Debtors filed an amended and restated plan of reorganization (the “Amended Plan”) and a supplemental disclosure statement (the “Supplemental Disclosure Statement”) with the Bankruptcy Court. On August 10, 2016, the Company received signatures to the PSA Amendment from 100% of the Revolver Lenders. Together with the signatures already received from the Noteholders of approximately 69% in principal amount of our Senior Notes, the PSA Amendment became effective as of August 5, 2016. On October 28, 2016, the Bankruptcy Court issued an oral ruling denying confirmation of the Debtors’ Amended Plan. Paragon is currently evaluating its potential courses of action. As a result of the Bankruptcy Court not confirming the Debtors’ Amended Plan on or before October 31, 2016, the Noteholders and the Revolver Lenders each have the right to terminate the PSA upon three business days’ notice. Debtors-in-Possession Since the filing date, the Debtors have operated their business as “debtors-in-possession.” Under the Bankruptcy cases, the Debtor’s trade creditors and vendors are being paid in full in the ordinary course of business and all of the Company’s contracts have remained in effect in accordance with their terms preserving the rights of all parties. Certain subsidiaries of the Company were not party to the chapter 11 filing (the “Non-Filing entities”). The Non-Filing entities have continued to operate in the ordinary course of business. Settlement with Noble Corporation On February 12, 2016, we entered into a binding term sheet (the “Term Sheet”) with Noble with respect to the “Noble Settlement Agreement” (as described below), which we executed on April 29, 2016. The Noble Settlement Agreement will become effective upon the effective date of the Debtors’ plan of reorganization if such plan is substantially similar to the Debtors’ Plan filed with the PSA. In light of the Bankruptcy Court’s order on October 28, 2016, we intend to discuss this requirement with Noble if the Debtors elect to pursue a plan of reorganization that will not fulfill this condition to the Noble Settlement Agreement. The Noble Settlement Agreement provides that Noble may only unilaterally terminate the Noble Settlement Agreement if: (i) the Debtors’ file a plan of reorganization with the Bankruptcy Court that does not incorporate the terms and conditions of the Noble Settlement Agreement, (ii) the Debtors file a motion before the Bankruptcy Court to terminate their obligations under the Noble Settlement Agreement, or (iii) the release of claims by the Debtors in favor of Noble, as detailed below, is deemed invalid or unenforceable. Pursuant to the Noble Settlement Agreement, Noble will provide direct bonding in fulfillment of the requirements necessary to challenge tax assessments in Mexico relating to our business for the tax years 2005 through 2010 (the “Mexican Tax Assessments”). The Mexican Tax Assessments were originally assigned to us by Noble pursuant to the Tax Sharing Agreement which was entered into in connection with the Spin-Off. See Note 16 - “Commitments and Contingencies” for additional information. The Company has contested or intends to contest the Mexico Tax Assessments and may be required to post bonds in connection thereto. In addition, on August 5, 2016, we entered into a binding term sheet with respect to an amendment to the Noble Settlement Agreement (the “Noble Settlement Agreement Amendment”). Upon effectiveness of the Noble Settlement Agreement Amendment, certain provisions of the Tax Sharing Agreement will be further amended to permit us, at our option, to defer up to $5 million in amounts owed to Noble under the Tax Sharing Agreement with respect to the Mexican Tax Assessments (the “Deferred Noble Payment Amount”). In consideration for this deferral, we would issue an unsecured promissory note to Noble in the amount of the Deferred Noble Payment Amount (the “Noble Note”) which would be due and payable on the fourth anniversary of the effective date of the Amended Plan. The Noble Note would accrue interest, quarterly, to be paid either: (x) in cash at 12% per annum, or (y) in kind at 15% per annum (in our discretion). As of September 30, 2016, our estimated Mexican Tax Assessments totaled approximately $172 million , with assessments for 2009 and 2010 yet to be received. Noble will be responsible for all of the ultimate tax liability for Noble legal entities and 50% of the ultimate tax liability for our legal entities relating to the Mexican Tax Assessments. In consideration for this support, we have agreed to release Noble, fully and unconditionally, from any and all claims in relation to the Spin-Off. Upon the effectiveness of the Noble Settlement Agreement, a material portion of our Mexican Tax Assessments, and any corresponding ultimate tax liability, will be assumed by Noble on the Effective Date in connection with certain amendments to the Tax Sharing Agreement executed between Noble and Paragon for the Spin-Off. Until such time, the current Tax Sharing Agreement remains in effect.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, which creates ASC Topic 606, Revenue from Contracts with Customers and supersedes the revenue recognition requirements in Topic 605 and industry-specific standards that currently exist under U.S. GAAP. The amendments in this ASU are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that the entity expects to be entitled to in exchange for those goods or services. Based on ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued in August 2015, the amendments in this ASU are effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The Company is not permitted to adopt this standard earlier than the original effective date for public entities. This ASU can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In March, April and May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients , respectively. These updates are not intended to change the core principles of ASU No. 2014-09 but instead clarify important aspects of the guidance and improve its operability and implementation on such topics as: principal versus agent considerations in revenue transactions, goods or services that are “separately identifiable” performance obligations, collectability, noncash consideration and presentation of sales taxes. These updates have the same effective date and transition requirements as the new revenue standard. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures and have not decided upon a method of adoption. In February 2016, the FASB issued ASU No. 2016-02, which creates ASC Topic 842, Leases . This ASU requires an entity to separate lease components from nonlease components in a contract. The lease components would be accounted for under ASU 2016-02, which requires lessees to recognize a right-of-use asset and a lease liability for capital and operating leases with lease terms greater than twelve months. Lessors must align certain requirements with the updates to lessee accounting standards and potentially derecognize a leased asset and recognize a net investment in the lease. This ASU also requires key qualitative and quantitative disclosures by lessess and lessors to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. We are evaluating the provisions of ASU 2016-02, concurrently with the provisions of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) since nonlease components would be accounted for under ASU 2014-09. This update is effective for financial statements issued for annual reporting periods beginning after December 15, 2018, and interim reporting periods within that reporting period. Early adoption is permitted. A modified retrospective approach is required. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation - Stock Compensation . The ASU includes provisions intended to simplify the accounting for and presentation of share-based payment transactions, including such areas as income tax effects, minimum statutory tax withholding requirements and classification of awards as either equity or liabilities, forfeitures, and the classification on the statement of cash flows. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. Transition methods vary for the related amendments. We do not expect that our adoption will have a material impact on our financial condition, results of operations, cash flows or financial disclosures. In June 2016, the FASB issued ASU No. 2016-13, which creates ASC Topic 326, Financial Instruments - Credit Losses . The new guidance introduces new accounting models for expected credit losses on financial instruments and applies to: (1) loans, accounts receivable, trade receivables and other financial assets measured at amortized cost, (2) loan commitments and certain other off-balance sheet credit exposures, (3) debt securities and other financial assets measured at fair value through other comprehensive income, and (4) beneficial interests in securitized financial assets. The scope of the new guidance is broad and is designed to improve the current accounting models for the impairment of financial assets. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. A modified retrospective approach is required. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016 the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , a consensus of the FASB’s Emerging Issues Task Force. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The ASU addresses how the following cash transactions are presented: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investments; and (7) beneficial interests in securitization transactions. The ASU also addresses how to present cash receipts and cash payments that have aspects of multiple cash flow classifications. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. We do not expect that our adoption will have a material impact on our cash flows or financial disclosure. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been made available for issuance. This ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are considering early adoption of this ASU effective January 1, 2017 and do not expect that our adoption will have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Our unaudited condensed consolidated financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. Actual results could differ from those estimates. The significant accounting policies and estimates below update and supplement those described in our Annual Report on Form 10-K for the year ended December 31, 2015 . Reorganization Accounting In connection with filing chapter 11 of the Bankruptcy Code on February 14, 2016, the Company is subject to the requirements of FASB ASC 852, Reorganizations (“ASC 852”) . ASC852 is applicable to companies under bankruptcy protection and requires amendments to the presentation of key financial statement line items. ASC 852 generally does not change the manner in which financial statements are prepared. However, it does require that the financial statements for periods subsequent to the filing of the Bankruptcy cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Revenues, expenses, realized gains and losses, and provisions for losses that can be directly associated with the reorganization of the business must be reported separately as reorganization items in the consolidated statements of operations for the three and nine months ended September 30, 2016 . The balance sheet must distinguish pre-petition liabilities subject to compromise from both those pre-petition liabilities that are not subject to compromise and from post-petition liabilities. Liabilities that may be affected by the plan of reorganization must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the plan of reorganization. See Note 9 - “Reorganization Items” for cash paid for reorganization items in the consolidated statements of cash flows. Allowance for Doubtful Accounts We utilize the specific identification method for establishing and maintaining allowances for doubtful accounts. We review accounts receivable on a quarterly basis to determine the reasonableness of the allowance. The Company monitors the accounts receivable from its customers for any collectability issues. An allowance for doubtful accounts is established based on reviews of individual customer accounts, recent loss experience, current economic conditions, and other pertinent factors. Our allowance for doubtful accounts was $34 million and $44 million as of September 30, 2016 and December 31, 2015 , respectively. We had no recoveries for the three months ended September 30, 2016 , and $6 million of recoveries for the nine months ended September 30, 2016 compared to bad debt expense of $12 million and $27 million for the three and nine months ended September 30, 2015 , respectively. Bad debt expense and recoveries are reported as a component of “Contract drilling services operating costs and expenses” in our Condensed Consolidated Statements of Operations. Debt Issuance Costs In the first quarter of 2016, we adopted the guidance issued by the FASB in April 2015 in ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount and are being amortized over the life of the debt. In our December 31, 2015 Condensed Consolidated Balance Sheet presented in this Form 10-Q, we reclassified $21 million of debt issuance costs for our Senior Notes, Term Loan Facility, and Sale-Leaseback Transaction from “Other assets” to “Long-term debt” to conform to the current period presentation of debt issuance costs. Debt issuance costs related to line of credit arrangements will continue to be classified in “Other assets” on the Condensed Consolidated Balance Sheets; however, as a result of the filing of the Bankruptcy cases, debt issuance costs related to our Revolving Credit Facility have been classified as liabilities subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . For our debt securities that are considered to be liabilities subject to compromise, we ceased to amortize deferred debt issuance costs through interest expense. (See Note 8 - “Liabilities Subject to Compromise” ).

Property and Equipment and Othe

Property and Equipment and Other Assets	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT AND OTHER ASSETS	PROPERTY AND EQUIPMENT AND OTHER ASSETS Loss on Impairment We assess the recoverability of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project or major rig upgrade). An impairment loss on our property and equipment exists when the estimated fair value, which is based on estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition, is less than its carrying amount. Estimates of undiscounted future cash flows typically include (i) discrete financial forecasts, which rely on management’s estimates of revenue and operating expenses, (ii) long-term growth rates, and (iii) estimates of useful lives of the assets. Such estimates of future undiscounted cash flows are highly subjective and are based on numerous assumptions about future operations and market conditions. For the three and nine months ended September 30, 2016, we did not recognize an impairment loss in our Condensed Consolidated Statements of Operations. During the third quarter of 2015, we identified indicators of impairment, including the downward movement of crude oil prices, the release of the Paragon DPDS2 , the increased probability of lower activity in Brazil and Mexico and the resultant projected declines in dayrates and utilization. As a result of these indicators, we concluded that a triggering event existed, which required us to perform an impairment assessment of our fleet of drilling rigs. Based on this assessment and other operational analyses, we determined that five floaters, sixteen jackups, certain capital spares and the deposits related to the Three High-Spec Jackups Under Construction were impaired in 2015. In aggregate, we recognized non-cash impairment losses of approximately $1.1 billion during the three and nine months ended September 30, 2015, which is included in “Loss on impairments” in our Condensed Consolidated Statements of Operations. Goodwill Impairment As of December 31, 2015 and September 30, 2016 , we had no goodwill. For purposes of evaluating goodwill during the prior period, we have a single reporting unit, which represents our Contract Drilling Services provided by our fleet of mobile offshore drilling units. Given the events impacting the Company during the three months ended September 30, 2015, including the decrease in contractual activities, a sustained decline in the Company’s market capitalization and credit rating downgrades, the Company concluded that there were sufficient indicators to require a goodwill impairment analysis during the third quarter of 2015 in conjunction with our annual goodwill assessment. In accordance with the applicable accounting guidance, the Company performed a two-step impairment test. Based on this analysis, the Company determined goodwill was impaired and recognized a non-cash impairment charge of approximately $37 million for the three and nine months ended September 30, 2015, which is included in “Loss on impairments” in our Condensed Consolidated Statements of Operations. Gain on Sale of Assets In January 2015, we completed the sale of the Paragon M822 for $24 million to an unrelated third party. In connection with the sale, we recorded a pre-tax gain of approximately $17 million . In June 2015, we identified drill pipe that we would no longer utilize in our operations. We sold these items for $2 million and recorded a pre-tax loss of approximately $4 million .

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION In conjunction with the Spin-Off, we adopted equity incentive plans for our employees and directors, the Paragon Offshore plc 2014 Employee Omnibus Incentive Plan (the “Employee Plan”) and the Paragon Offshore plc 2014 Director Omnibus Plan (the “Director Plan”). Replacement awards of Paragon time-vested restricted stock units (“TVRSU’s”) and performance-vested restricted stock units (“PVRSU’s”), granted in connection with the Spin-Off, as well as, since the Spin-off, new share-settled and cash-settled awards (“CS-TVRSU’s”) have been granted under the Employee Plan and the Director Plan. No awards were granted during three and nine months ended September 30, 2016 . Shares available for issuance and outstanding restricted stock units under our two equity incentive plans as of September 30, 2016 are as follows (excluding the impact of cash-settled awards): (In shares) Employee Plan Director Plan Shares available for future awards or grants 4,745,363 434,048 Outstanding unvested restricted stock units 3,887,027 — We have awarded both TVRSU’s and PVRSU’s under our Employee Plan and TVRSU’s under our Director Plan. The TVRSU’s under our Employee Plan generally vest pro-rata over a three -year period. The number of PVRSU’s which vest will depend on the degree of achievement of specified company-based and market-based performance criteria over the service period. Under the Employee Plan, we have awarded CS-TVRSU’s that are accounted for as liability-based awards. The CS-TVRSU’s vest pro-rata over a three -year period. A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows: TVRSU’s Outstanding TVRSU Weighted Average Grant-Date Fair Value CS-TVRSU’s Outstanding Share Price (1) PVRSU’s Outstanding (2) PVRSU Weighted Average Grant-Date Fair Value Outstanding as of December 31, 2015 5,824,857 $ 5.34 2,647,565 849,484 $ 5.31 Awarded — — — — — Vested (2,481,499 ) 5.13 (858,459 ) — — Forfeited (235,543 ) 5.70 (407,449 ) (70,272 ) 11.00 Outstanding as of September 30, 2016 3,107,815 1,381,657 $ 0.62 779,212 (1) The share price represents the closing price of our shares on September 30, 2016 at which our CS-TVRSU’s are measured. (2) Includes 191,474 PVRSU’s outstanding as of September 30, 2016 for which vesting depends on the degree of achievement of a company-based performance criteria, the Company’s ROCE. The share amount of these PVRSU’s equals the units that would vest if the “maximum” level of performance is achieved based on ROCE. The minimum number of units is zero and the “target” level of performance is 50% of the maximum. During the nine months ended September 30, 2016 , 70,272 PVRSU’s were forfeited as a result of the Company not achieving the thresholds for vesting based on annualized ROCE performance over the term of the awards. For the remaining 587,738 PVRSU’s outstanding, the share amount equals the units that would vest if the “target” level of performance is achieved based on the Company’s achievement of a market-based objective, the Company’s total shareholder return (“TSR”). The minimum number of units is zero and the “maximum” level of performance is 200% of the target amount. Equity and liability-based award amortization recognized during the three and nine months ended September 30, 2016 totaled $2 million and $8 million , respectively. Equity and liability-based award amortization recognized during the three and nine months ended September 30, 2015 totaled $3 million and $13 million , respectively. As of September 30, 2016 , we had $8 million of total unrecognized compensation cost related to our TVRSU’s. The Company expects to recognize this cost over a remaining weighted-average period of 1.1 years. As of September 30, 2016 , we had $0.6 million of total unrecognized compensation cost related to our CS-TVRSU’s. The Company expects to recognize this cost over a remaining weighted-average period of 1.4 years. As of September 30, 2016 , we had $0.3 million of total unrecognized compensation cost related to our PVRSU’s. The Company expects to recognize this cost over a remaining weighted-average period of 1 year . The total potential compensation for the 191,474 PVRSU’s based on ROCE is recognized over the service period based on an estimate of the likelihood that our ROCE will achieve the targeted threshold. We currently estimate a 100% forfeiture rate related to these PVRSU’s. The total potential compensation for the 587,738 PVRSU’s based on TSR is recognized over the service period regardless of whether the TSR performance thresholds are ultimately achieved since vesting is based on market conditions.

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
LOSS PER SHARE	LOSS PER SHARE Our outstanding share-based payment awards currently consist solely of restricted stock units. These unvested restricted stock units, which contain non-forfeitable rights to dividends, are deemed to be participating securities and are included in the computation of earnings per share pursuant to the “two-class” method. The “two-class” method allocates undistributed earnings between ordinary shares and participating securities; however, in a period of net loss, losses are not allocated to our participating securities. No earnings were allocated to unvested share-based payment awards in our earnings per share calculation for the three and nine months ended September 30, 2016 and 2015 due to our net loss in each respective period. Weighted average shares outstanding, basic and diluted, has been computed based on the weighted average number of ordinary shares outstanding during the applicable periods. Restricted stock units do not represent ordinary shares outstanding until they are vested and converted into ordinary shares. The diluted earnings per share calculation under the two class method is the same as our basic earnings per share calculation as we currently have no stock options or other potentially dilutive securities outstanding. Upon our development of a plan of reorganization, any issuance of ordinary shares to our creditors could dilute current equity interests. The following table sets forth the computation of basic and diluted loss per share: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Allocation of loss - basic and diluted Net loss $ (63,618 ) $ (1,084,838 ) $ (93,937 ) $ (976,380 ) Earnings allocated to unvested share-based payment awards — — — — Net loss attributable to ordinary shareholders - basic and diluted $ (63,618 ) $ (1,084,838 ) $ (93,937 ) $ (976,380 ) Weighted average shares outstanding Basic and diluted 87,876 87,077 87,360 85,703 Weighted average unvested share-based payment awards 3,929 6,947 4,731 6,023 Loss per share Basic and diluted $ (0.72 ) $ (12.46 ) $ (1.08 ) $ (11.39 )

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
DEBT	DEBT A summary of long-term debt as of September 30, 2016 and December 31, 2015 is as follows: September 30, December 31, (In thousands) 2016 2015 Revolving Credit Facility (1) $ — $ 708,500 Term Loan Facility, bearing interest of 5.25% and 3.75% as of September 30, 2016 and December 31, 2015, respectively (1) — 641,875 Senior Notes due 2022, bearing fixed interest at 6.75% per annum (1) — 456,572 Senior Notes due 2024, bearing fixed interest at 7.25% per annum (1) — 527,010 Sale-Leaseback Transaction 209,926 268,688 Unamortized debt issuance costs (767 ) (23,572 ) Total debt 209,159 2,579,073 Less: Current maturities of long-term debt (30,659 ) (40,629 ) Long-term debt $ 178,500 $ 2,538,444 (1) See Note 8 - “Liabilities Subject to Compromise” for each of the respective September 30, 2016 balances identified above. Revolving Credit Facility, Term Loan Facility and Senior Notes On June 17, 2014, we entered into the Revolving Credit Agreement with lenders that provided commitments in the amount of $800 million . The Revolving Credit Agreement, which is secured by substantially all of our rigs, has a term of five years and matures in July 2019. Borrowings under the Revolving Credit Facility bear interest, at our option, at either (i) an adjusted LIBOR , plus an applicable margin ranging between 1.50% to 2.50% , depending on our leverage ratio, or (ii) a base rate plus an applicable margin ranging between 1.50% to 2.50% . Under the Revolving Credit Agreement, we may also obtain letters of credit, the issuance of which would reduce a corresponding amount available for borrowing. As of September 30, 2016 , we had $709 million in borrowings outstanding at a weighted-average interest rate of 3.03% , and an aggregate amount of $87 million of letters of credit issued under the Revolving Credit Facility. The balance of our Revolving Credit Facility and unamortized deferred debt issuance costs are classified as liabilities subject to compromise (See Note 8 - “Liabilities Subject to Compromise” ). We continue to pay interest on the Revolving Credit Facility in the ordinary course of business based on Bankruptcy Court approval. Accordingly, interest payable on the Revolving Credit Facility is not classified as a liability subject to compromise. On July 18, 2014, we issued $1.08 billion of Senior Notes and also borrowed $650 million under the Term Loan Facility. The Term Loan Facility is secured by substantially all of our rigs. The proceeds from the Term Loan Facility and the Senior Notes were used to repay $1.7 billion of intercompany indebtedness to Noble incurred as partial consideration for the Separation. The Senior Notes consisted of $500 million of 6.75% senior notes and $580 million of 7.25% senior notes, which mature on July 15, 2022 and August 15, 2024 , respectively. The Senior Notes were issued without an original issue discount. Contractual interest on the 6.75% senior notes is payable semi-annually, in January and July. Contractual interest on the 7.25% senior notes is payable semi-annually, in February and August. The $1 billion balance of our Senior Notes, accrued pre-petition interest, and unamortized deferred debt issuance costs are classified as liabilities subject to compromise (See Note 8 - “Liabilities Subject to Compromise” ). As interest on the Company’s unsecured Senior Notes subsequent to February 14, 2016 was not expected to be an allowed claim, the Company ceased accruing interest on its Senior Notes on this date. Results for the three and nine months ended September 30, 2016 would have included contractual interest expense of $18 million and $44 million , respectively. These costs would have been incurred had the unsecured Senior Notes not been classified as subject to compromise. Borrowings under the Term Loan Facility bear interest at an adjusted LIBOR rate plus 2.75% , subject to a minimum LIBOR rate of 1% or a base rate plus 1.75% , at our option. We are required to make quarterly principal payments of $1.6 million plus interest and may prepay all or a portion of the Term Loan Facility at any time. The Term Loan Facility matures in July 2021. The loans under the Term Loan Facility were issued with 0.50% original issue discount. As a result of the oral ruling which denied confirmation of the Debtors’ Amended Plan including the reinstatement of the Term Loan Facility, our Term Loan Facility may be affected by a plan of reorganization. Consequently, as of September 30, 2016, the net balance of our Term Loan Facility, unamortized deferred debt issuance costs and unamortized discount was classified as liabilities subject to compromise (See Note 8 - “Liabilities Subject to Compromise” ). Paragon continues to make interest payments on its Term Loan Facility in the ordinary course of business, based on Bankruptcy Court approval. Accordingly, interest payable on the Term Loan Facility is not classified as liabilities subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . During the first quarter of 2015, we repurchased and canceled an aggregate principal amount of $11 million of our Senior Notes at an aggregate cost of $7 million , including accrued interest. The repurchases consisted of $1 million aggregate principal amount of our 6.75% senior notes due July 2022 and $10 million aggregate principal amount of our 7.25% senior notes due August 2024. As a result of the repurchases, we recognized a total gain on debt retirement, net of the write-off of issuance costs, of approximately $4 million in “Gain on repurchase of long-term debt.” All Senior Note repurchases were made using available cash balances. We had no debt repurchases subsequent to the first quarter of 2015. The agreements related to our Debt Facilities contain covenants that place restrictions on certain merger and consolidation transactions; our ability to sell or transfer certain assets; payment of dividends; making distributions; redemption of stock; incurrence or guarantee of debt; issuance of loans; prepayment; redemption of certain debt; as well as incurrence or assumption of certain liens. The covenants and events of default under our Revolving Credit Agreement, Senior Notes, and Term Loan Facility are substantially similar. Sale-Leaseback Transaction On July 24, 2015, we executed a combined $300 million Sale-Leaseback Transaction with subsidiaries of SinoEnergy (collectively, the “Lessors”) for our two high specification jackup units, Prospector 1 and Prospector 5 (collectively, the “Prospector Rigs”). We sold the Prospector Rigs to the Lessors and immediately leased the Prospector Rigs from the Lessors for a period of five years pursuant to a lease agreement for each Prospector Rig (collectively, the “Lease Agreements”). Net of fees and expenses and certain lease prepayments, we received net proceeds of approximately $292 million , including amounts used to fund certain required reserve accounts. The Prospector 5 is currently operating under drilling contracts with Total S.A. until November 2017. The Prospector 1 ended its contract with Total S.A. in mid-September 2016. On April 5, 2016, the Company obtained a forbearance from the Lessors of the event of default relating to the filing of the chapter 11 cases under the Lease Agreements. The forbearance will become a permanent waiver of this event of default upon the occurrence of certain conditions, including that the effective date of the Plan occurs by the outside date set forth in the PSA. We have extended this forbearance so that the forbearance will continue until November 30, 2016, subject to certain conditions, including that the PSA is not terminated before such date. In light of the Bankruptcy Court’s oral order on October 28, 2016, we are discussing modifications to the conditions of the waiver with the Lessor if the Debtors elect to pursue an alternative plan of reorganization. If we do not receive this waiver, we intend to file petitions for relief under chapter 11 of the Bankruptcy Code for the parties to the Lease Agreements and certain of their affiliates. While it has been determined that the Lessors are variable interest entities (“VIEs”), we are not the primary beneficiary of the VIEs for accounting purposes since we do not have the power to direct the operation of the VIEs and we do not have the obligation to absorb losses nor the right to receive benefits that could potentially be significant to the VIEs. As a result, we do not consolidate the Lessors in our consolidated financial statements. We have accounted for the Sale-Leaseback Transaction as a capital lease. The following table includes our minimum annual rental payments using weighted-average effective interest rates of 5.2% for the Prospector 1 and 7.5% for the Prospector 5 . (In millions) 2016 2017 2018 2019 2020 Thereafter Total Minimum annual rental payments $ 12 $ 41 $ 33 $ 31 $ 133 $ — $ 250 We made rental payments, including interest, of approximately $24 million and $71 million during the three and nine months ended September 30, 2016 . We made rental payments, including interest, of approximately $13 million during the three and nine months ended September 30, 2015 . This includes pre-payments or Excess Cash Amounts (as defined below) of $4 million and $11 million for the Prospector 1 for the three and nine months ended September 30, 2016 , respectively, and $7 million and $21 million for the Prospector 5 for the three and nine months ended September 30, 2016 , respectively. Following the third and fourth anniversaries of the closing dates of the Lease Agreements, we have the option to repurchase each Prospector Rig for an amount as defined in the Lease Agreements. At the end of the lease term, we have an obligation to repurchase each Prospector Rig for a maximum amount of $88 million per Prospector Rig, less any pre-payments made by us during the term of the Lease Agreements. The Lease Agreements obligate us to make certain termination payments upon the occurrence of certain events of default, including payment defaults, breaches of representations and warranties, termination of the underlying drilling contract for each Rig, covenant defaults, cross-payment defaults, certain events of bankruptcy, material judgments and actual or asserted failure of any credit document to be in force and effect. The Lease Agreements contain certain representations, warranties, obligations, conditions, indemnification provisions and termination provisions customary for sale and leaseback financing transactions. The Lease Agreements contain certain affirmative and negative covenants that, subject to exceptions, limit our ability to, among other things, incur additional indebtedness and guarantee indebtedness, pay inter-company dividends or make other inter-company distributions or repurchase or redeem capital stock, prepay, redeem or repurchase certain debt, make loans and investments, sell, transfer or otherwise dispose of certain assets, create or incur liens, enter into certain types of transactions with affiliates, consolidate, merge or sell all or substantially all of our assets, and enter into new lines of business. In addition, we are required to maintain a cash reserve of $11.5 million for each Prospector Rig throughout the term of the Lease Agreements. During the term of the current drilling contract for each Prospector Rig, we are also required to pay to the Lessors any excess cash amounts earned under such contract, after payment of bareboat charter fees and operating expenses for such Prospector Rig and maintenance of any mandatory reserve cash amounts (the “Excess Cash Amounts”). These excess cash payments represent prepayment for the remaining rental payments under the applicable Lease Agreement (the “Cash Sweep”). As of September 30, 2016 and December 31, 2015 , we had short-term restricted cash balances of $8 million and $3 million , respectively, and long-term restricted cash balances $27 million and $25 million , respectively, related to the Lease Agreements in “Restricted cash” on our Condensed Consolidated Balance Sheet. Following the conclusion of the current drilling contract for each Rig, the Cash Sweep will be reduced, requiring us to make prepayments to the Lessors of up to 25% of the Excess Cash Amounts.

Liabilities Subject to Compromi

Liabilities Subject to Compromise	9 Months Ended
	Sep. 30, 2016
Liabilities Subject to Compromise [Abstract]
LIABILITIES SUBJECT TO COMPROMISE	LIABILITIES SUBJECT TO COMPROMISE As a result of the filing of the Bankruptcy cases on February 14, 2016, we have classified pre-petition liabilities that may be affected by a plan of reorganization as liabilities subject to compromise in our interim consolidated financial statements. Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. If there is uncertainty about whether a secured claim is under-secured, or will be impaired under a plan of reorganization, the entire amount of the claim is included in liabilities subject to compromise. The amounts currently classified as liabilities subject to compromise represent Paragon’s current estimate of claims expected to be allowed under a plan of reorganization. We will continue to evaluate these liabilities during the pendency of the Bankruptcy cases and they may be subject to future adjustments depending on the Bankruptcy Court actions, further development with respect to disputed claims, or other events. Such adjustments may be material. The Revolving Credit Facility, Senior Notes, and Term Loan Facility may be affected by a plan of reorganization which is subject to confirmation by the Bankruptcy Court. As such, the outstanding balances of these debt instruments and related accrued pre-petition interest (for the Senior Notes only), unamortized debt issuance costs and unamortized discount (for Term Loan Facility only) have been classified as liabilities subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims is generally not permitted, the Bankruptcy Court approved the Debtors’ “first day” motions allowing, among other things, the payment of obligations related to human capital, supplier relations, customer relations, business operations, tax matters, cash management, utilities, case management and retention of professionals. As a result of this approval, the Company continues to pay certain pre-petition claims in designated categories and subject to certain terms and conditions in the ordinary course of business, and we have not classified these liabilities as subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . This is designed to preserve the value of the Company’s businesses and assets. With respect to pre-petition claims, the Company has notified all known claimants of the deadline to file a proof of claim with the Court. The Company has been paying and intends to continue to pay undisputed post-petition claims in the ordinary course of business. The following table reflects pre-petition liabilities that are subject to compromise included in our Condensed Consolidated Balance Sheets as of September 30, 2016 . See Note 7 - “Debt” for a specific discussion on the debt instruments and related balances subject to compromise: September 30, (In thousands) 2016 Revolving Credit Facility $ 708,500 Term Loan Facility 641,875 Senior Notes due 2022, bearing fixed interest at 6.75% per annum 456,572 Senior Notes due 2024, bearing fixed interest at 7.25% per annum 527,010 Interest payable on Senior Notes 37,168 Debt issuance costs on Revolving Credit Facility (5,891 ) Discount and debt issuance costs on Term Loan Facility (7,259 ) Debt issuance costs on Senior Notes (14,012 ) Liabilities subject to compromise $ 2,343,963 REORGANIZATION ITEMS ASC 852 requires that transactions and events directly associated with the reorganization be distinguished from the ongoing operations of the business. The Company uses “Reorganization items, net” on its Condensed Consolidated Statements of Operations to reflect the net revenues, expenses, gains and losses that are the direct result of the reorganization of the business. The following table summarizes the components included in “Reorganization items, net”: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2016 Professional fees $ 14,249 $ 46,747 Other 2,962 9,855 Total Reorganization items, net $ 17,211 $ 56,602 Included in Reorganization items, net for the nine months ended September 30, 2016, is approximately $31 million of cash paid for professional fees, $18 million of accrued expenses and $8 million of non-cash amortization associated with the reorganization.

Reorganization Items

Reorganization Items	9 Months Ended
	Sep. 30, 2016
Reorganizations [Abstract]
REORGANIZATION ITEMS	LIABILITIES SUBJECT TO COMPROMISE As a result of the filing of the Bankruptcy cases on February 14, 2016, we have classified pre-petition liabilities that may be affected by a plan of reorganization as liabilities subject to compromise in our interim consolidated financial statements. Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. If there is uncertainty about whether a secured claim is under-secured, or will be impaired under a plan of reorganization, the entire amount of the claim is included in liabilities subject to compromise. The amounts currently classified as liabilities subject to compromise represent Paragon’s current estimate of claims expected to be allowed under a plan of reorganization. We will continue to evaluate these liabilities during the pendency of the Bankruptcy cases and they may be subject to future adjustments depending on the Bankruptcy Court actions, further development with respect to disputed claims, or other events. Such adjustments may be material. The Revolving Credit Facility, Senior Notes, and Term Loan Facility may be affected by a plan of reorganization which is subject to confirmation by the Bankruptcy Court. As such, the outstanding balances of these debt instruments and related accrued pre-petition interest (for the Senior Notes only), unamortized debt issuance costs and unamortized discount (for Term Loan Facility only) have been classified as liabilities subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims is generally not permitted, the Bankruptcy Court approved the Debtors’ “first day” motions allowing, among other things, the payment of obligations related to human capital, supplier relations, customer relations, business operations, tax matters, cash management, utilities, case management and retention of professionals. As a result of this approval, the Company continues to pay certain pre-petition claims in designated categories and subject to certain terms and conditions in the ordinary course of business, and we have not classified these liabilities as subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . This is designed to preserve the value of the Company’s businesses and assets. With respect to pre-petition claims, the Company has notified all known claimants of the deadline to file a proof of claim with the Court. The Company has been paying and intends to continue to pay undisputed post-petition claims in the ordinary course of business. The following table reflects pre-petition liabilities that are subject to compromise included in our Condensed Consolidated Balance Sheets as of September 30, 2016 . See Note 7 - “Debt” for a specific discussion on the debt instruments and related balances subject to compromise: September 30, (In thousands) 2016 Revolving Credit Facility $ 708,500 Term Loan Facility 641,875 Senior Notes due 2022, bearing fixed interest at 6.75% per annum 456,572 Senior Notes due 2024, bearing fixed interest at 7.25% per annum 527,010 Interest payable on Senior Notes 37,168 Debt issuance costs on Revolving Credit Facility (5,891 ) Discount and debt issuance costs on Term Loan Facility (7,259 ) Debt issuance costs on Senior Notes (14,012 ) Liabilities subject to compromise $ 2,343,963 REORGANIZATION ITEMS ASC 852 requires that transactions and events directly associated with the reorganization be distinguished from the ongoing operations of the business. The Company uses “Reorganization items, net” on its Condensed Consolidated Statements of Operations to reflect the net revenues, expenses, gains and losses that are the direct result of the reorganization of the business. The following table summarizes the components included in “Reorganization items, net”: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2016 Professional fees $ 14,249 $ 46,747 Other 2,962 9,855 Total Reorganization items, net $ 17,211 $ 56,602 Included in Reorganization items, net for the nine months ended September 30, 2016, is approximately $31 million of cash paid for professional fees, $18 million of accrued expenses and $8 million of non-cash amortization associated with the reorganization.

Condensed Combined Debtor-In-Po

Condensed Combined Debtor-In-Possession Financial Information	9 Months Ended
	Sep. 30, 2016
Condensed Financial Information of Debtor in Possession Disclosure [Abstract]
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION	CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. Effective January 1, 2016, the Non-Filing entities are accounted for as non-consolidated subsidiaries in these financial statements and, as such, their net earnings are included as “Equity in earnings of Non-Filing entities, net of tax” in the Debtors’ Condensed Combined Statement of Operations and their net assets are included as “Investment in Non-Filing entities” in the Debtors’ Condensed Combined Balance Sheet. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing entities have not been eliminated in the Debtors’ financial statements. DEBTORS’ CONDENSED COMBINED STATEMENT OF OPERATIONS ( Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Operating revenues Contract drilling services $ 85,594 $ 417,259 Reimbursables and other 8,009 38,866 93,603 456,125 Operating costs and expenses Contract drilling services 82,802 270,407 Reimbursables 1,387 25,987 Depreciation and amortization 44,445 164,247 General and administrative 11,110 29,783 139,744 490,424 Operating loss before interest, reorganization items and income taxes (46,141 ) (34,299 ) Interest expense, net (contractual interest of $33,011 and $95,782 for the three and nine months ended September 30, 2016) (14,429 ) (50,771 ) Other, net 2,408 1,325 Reorganization items, net (15,046 ) (49,253 ) Loss before income taxes (73,208 ) (132,998 ) Income tax provision (1,912 ) (2,372 ) Net loss (75,120 ) (135,370 ) Equity in earnings of Non-Filing entities, net of tax 11,502 41,433 Net loss attributable to Paragon Offshore plc $ (63,618 ) $ (93,937 ) DEBTORS’ CONDENSED COMBINED BALANCE SHEET ( Unaudited) (In thousands ) September 30, 2016 ASSETS Current assets Cash and cash equivalents $ 566,998 Accounts receivable, net of allowance for doubtful accounts of $33 million 114,222 Accounts receivable from Non-Filing entities 486,932 Prepaid and other current assets 35,343 Total current assets 1,203,495 Investment in Non-Filing entities 1,086,836 Notes receivable from Non-Filing entities 57,238 Property and equipment, at cost 2,154,078 Accumulated depreciation (1,677,888 ) Property and equipment, net 476,190 Other assets 40,987 Total assets $ 2,864,746 LIABILITIES AND EQUITY Current liabilities Current maturities of debt due to Non-Filing entities $ 3,606 Accounts payable 40,965 Accounts payable due to Non-Filing entities 778,456 Accrued payroll and related costs 26,200 Taxes payable 13,135 Interest payable 2,058 Other current liabilities 25,600 Total current liabilities 890,020 Long-term debt due to Non-Filing entities 5,640 Deferred income taxes 1,350 Other liabilities 26,406 Liabilities subject to compromise 2,343,963 Total liabilities 3,267,379 Equity Total deficit (402,633 ) Total liabilities and equity $ 2,864,746 DEBTORS’ CONDENSED COMBINED STATEMENT OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2016 Net cash provided by operating activities $ 148,301 Capital expenditures (30,817 ) Change in accrued capital expenditures (8,149 ) Change in restricted cash (9,254 ) Net cash used in investing activities (48,220 ) Net cash used in financing activities — Net change in cash and cash equivalents 100,081 Cash and cash equivalents, beginning of period 466,917 Cash and cash equivalents, end of period $ 566,998

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES We operate through various subsidiaries in numerous countries throughout the world. Consequently, income taxes have been based on the laws and rates in effect in the countries in which operations are conducted and in which we and our subsidiaries or our Predecessor and its subsidiaries were incorporated or otherwise considered to have a taxable presence. The change in the effective tax rate from period to period is primarily attributable to changes in the profitability or loss mix of our operations in various jurisdictions. As our operations continually change among numerous jurisdictions, and methods of taxation in these jurisdictions vary greatly, there is little direct correlation between the income tax provision or benefit and income or loss before taxes. The income tax provision was $1 million for both the three and nine months ended September 30, 2016 . The income tax benefit for the three and nine months ended September 30, 2015 was $55 million and $67 million , respectively. At September 30, 2016 , the liabilities related to our unrecognized tax benefits, including estimated accrued interest and penalties, totaled $19 million , and if recognized, would reduce our income tax provision by $19 million . At December 31, 2015 , the liabilities related to our unrecognized tax benefits totaled $19 million . It is reasonably possible that our existing liabilities related to our unrecognized tax benefits may increase or decrease in the next twelve months primarily due to the progression of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of potential changes in our existing liabilities for unrecognized tax benefits due to various uncertainties, such as the unresolved nature of various audits.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Defined Benefit Plans We sponsor two non-U.S. noncontributory defined benefit pension plans, the Paragon Offshore Enterprise Ltd and the Paragon Offshore Nederland B.V. pension plans, which cover certain Europe-based salaried, non-union employees. For the three and nine months ended September 30, 2016 pension benefit expense related to our defined benefit pension plans, based on actuary estimates, are presented in the table below. Pension cost includes the following components: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Service cost $ 1,163 $ 1,361 $ 3,452 $ 4,097 Interest cost 575 493 1,706 1,484 Expected return on plan assets (460 ) (449 ) (1,366 ) (1,352 ) Amortization of prior service cost (5 ) (5 ) (14 ) (15 ) Amortization of net actuarial loss 193 195 573 579 Net pension expense $ 1,466 $ 1,595 $ 4,351 $ 4,793 During the three and nine months ended September 30, 2016 , we contributed approximately $6 million to our pension plans. Other Benefit Plans We sponsor a 401(k) defined contribution plan and a profit sharing plan, which cover our employees who are not otherwise enrolled in the above defined benefit plans. Other post-retirement benefit expense related to these other benefit plans included in the accompanying Condensed Consolidated Statements of Operations was $0.7 million and $0.6 million for the nine months ended September 30, 2016 and 2015 , respectively.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We have historically entered into derivative instruments to manage our exposure to fluctuations in foreign currency exchange rates, and we may conduct hedging activities in future periods to mitigate such exposure. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives. Cash Flow Hedges We have not entered into any hedging activity during 2016 . Depending on market conditions and availability of counterparties, we may elect to utilize short-term forward currency contracts in the future. Prospector Interest Rate Swaps At the time of our acquisition of Prospector, Prospector had outstanding a 2018 senior secured credit facility of $270 million (the “Prospector Senior Credit Facility”) which exposed Prospector to short-term changes in market interest rates as interest obligations on these instruments were periodically redetermined based on the prevailing LIBOR rate. Prior to our acquisition, a subsidiary of Prospector had entered into interest rate swaps with an aggregate maximum notional amount of $135 million . The interest rate swaps were entered into to reduce the variability of the cash interest payments under the Prospector Senior Credit Facility and to fix the interest on 50% of the outstanding borrowings under the facility. Prospector received interest at three-month LIBOR and paid interest at a fixed rate of 1.512% over the expected term of the Prospector Senior Credit Facility. In the first quarter of 2015, we had repaid in full the remaining principal balance outstanding under the Prospector Senior Credit Facility; therefore, the related interest rate swaps were terminated. The termination resulted in a settlement at fair market value plus accrued interest of approximately $1 million recorded in “Interest expense net of amount capitalized.” We did not apply hedge accounting with respect to these interest rate swaps and therefore, changes in fair values were recognized as either income or loss in our Consolidated Statements of Operations. For the nine months ended September 30, 2015, a gain of approximately $1 million resulting from the change in fair value of the interest rate swaps was recorded in “Interest expense, net of amount capitalized.”

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in the accompanying Condensed Consolidated Balance Sheets approximate fair value. Fair Value of Debt The estimated fair values of our Senior Notes and Term Loan Facility were based on the quoted market prices for similar issues (Level 2 measurement). The estimated fair value of our Senior Notes due July 15, 2022, excluding debt issuance costs of $6 million for September 30, 2016 and December 31, 2015 , respectively, and our Senior Notes due August 15, 2024, excluding debt issuance costs of $8 million for September 30, 2016 and December 31, 2015 , respectively, are as follows: Subject to Compromise Not Subject to Compromise September 30, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 6.75% Senior Notes due July 15, 2022 $ 456,572 $ 128,982 $ 456,572 $ 65,062 7.25% Senior Notes due August 15, 2024 527,010 149,473 527,010 75,099 Total senior unsecured notes $ 983,582 $ 278,455 $ 983,582 $ 140,161 The estimated fair value of our Term Loan Facility, bearing interest at 5.25% , excluding unamortized discount and debt issuance costs of $7 million and $8 million for September 30, 2016 and December 31, 2015 , respectively, is as follows: Subject to Compromise Not Subject to Compromise September 30, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Term Loan Facility $ 641,875 $ 152,044 $ 641,875 $ 235,889 The carrying amount of our variable-rate debt, the Revolving Credit Facility, which is subject to compromise as of September 30, 2016 , approximates fair value as such debt bears short-term, market-based interest rates. We have classified this instrument as Level 2 as valuation inputs used for purposes of determining our fair value disclosure are readily available published LIBOR rates.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the changes in the accumulated balances for each component of “Accumulated other comprehensive loss” (“AOCL”) for the nine months ended September 30, 2016 and 2015 . All amounts within the tables are shown net of tax. (In thousands) Defined Benefit Pension Items (1) Foreign Currency Items Total Balance as of December 31, 2014 $ (22,911 ) $ (14,233 ) $ (37,144 ) Activity during period: Other comprehensive loss before reclassification — (6,818 ) (6,818 ) Amounts reclassified from AOCL 570 — 570 Net other comprehensive income (loss) 570 (6,818 ) (6,248 ) Balance as of September 30, 2015 $ (22,341 ) $ (21,051 ) $ (43,392 ) Balance as of December 31, 2015 $ (20,351 ) $ (21,663 ) $ (42,014 ) Activity during period: Other comprehensive income before reclassification — (768 ) (768 ) Amounts reclassified from AOCL 455 — 455 Net other comprehensive income 455 (768 ) (313 ) Balance as of September 30, 2016 $ (19,896 ) $ (22,431 ) $ (42,327 ) (1) Defined benefit pension items relate to actuarial losses, prior service credits, and the amortization of actuarial losses and prior service credits. Reclassifications from AOCL are recognized as expense on our Condensed Consolidated Statements of Operations through either “Contract drilling services” or “General and administrative.” See Note 12, “Employee Benefit Plans” for additional information.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Purchase Commitments In connection with our capital expenditure program, we have outstanding commitments, including shipyard and purchase commitments of approximately $592 million as of September 30, 2016 . Our shipyard and purchase commitments consist of obligations outstanding to external vendors primarily related to future capital purchases and the construction of three high-specification jackup rigs, the Prospector 6, Prospector 7 and Prospector 8 (collectively, the “ Three High-Spec Jackups Under Construction”) by Shanghai Waigaoqiao Ship Co. Ltd. (“SWS”) in China. Our outstanding shipyard commitments include $579 million , of which $192 million is due in 2016 for the Prospector 7 and $387 million is due in 2017 for the Prospector 6 and the Prospector 8. In April 2016, we agreed with SWS to an extension of the delivery of the Prospector 6, Prospector 7 and Prospector 8 to the second quarter of 2017, the fourth quarter of 2016 and the fourth quarter of 2017, respectively. We are currently in discussions with SWS to further extend each of these delivery dates and have agreed in principle regarding these extensions, but such extensions remain subject to documentation. Each newbuild has been built pursuant to a contract between one of these subsidiaries and SWS, without our parent company guarantee or other direct recourse to any of our subsidiaries other than the applicable subsidiary. The Prospector subsidiaries are not included in the Bankruptcy cases. Litigation We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims. Tax Contingencies We operate in a number of countries throughout the world and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. As of September 30, 2016 , we have received tax audit claims of approximately $351 million , of which $90 million is subject to indemnity by Noble, primarily in Mexico and Brazil, attributable to our income, customs and other business taxes. In addition, as of September 30, 2016 , approximately $31 million of tax audit claims in Mexico assessed against Noble are subject to indemnity by us as a result of the Spin-Off. We have contested, or intend to contest, these claims, including through litigation if necessary. Tax authorities may issue additional claims or pursue legal actions as a result of tax audits, and we cannot predict or provide assurance as to the ultimate outcome of such claims and legal actions. In some cases, we will be required to post cash deposit as collateral while we defend these claims. We could be required to post such collateral in the near future, and such amounts could be substantial and could have a material adverse effect on our liquidity, financial condition, results of operations and cash flows. As of September 30, 2016 , we have no surety bonds or letters of credit associated with tax audit claims outstanding. In January 2015, a subsidiary of Noble received an unfavorable ruling from the Mexican Supreme Court on a tax depreciation position claimed in periods prior to the Spin-Off. Although the ruling does not constitute mandatory jurisprudence in Mexico, it does create potential indemnification exposure for us under the Tax Sharing Agreement with Noble if Noble is ultimately determined to be liable for any amounts. We are presently unable to determine a timeline on this matter, nor are we able to determine the extent of our liability. We have considered this matter under ASC 460, Guarantees , and concluded that our liability under this matter is reasonably possible. Due to these current uncertainties, we are not able to reasonably estimate the magnitude of any liability at this time. Petrobras has notified us, along with other industry participants, that it is currently challenging assessments by Brazilian tax authorities of withholding taxes associated with the provision of drilling rigs for its operations in Brazil during the years 2008 and 2009 totaling $87 million , of which $25 million is subject to indemnity by Noble. Petrobras has also notified us that if they must pay such withholding taxes, they will seek reimbursement from us. We believe that we are contractually indemnified by Petrobras for these amounts and dispute the validity of the assessment. We have notified Petrobras of our position. We will, if necessary, vigorously defend our rights. If we were required to pay such reimbursement, however, the amount of such reimbursement could be substantial and could have a material adverse effect on our financial condition, results of operations and cash flows. In addition, a tax law was enacted in Brazil, effective January 1, 2015, that under certain circumstances would impose a 15% to 25% withholding tax on charter hire payments made to a non-Brazilian related party exceeding certain thresholds of total contract value. Although we believe that our operations are not subject to this law, the tax is being withheld at the source by our customer and we have recorded $8 million withholding tax expense since inception of the law. Discussions with our customer over the applicability of this legislation are ongoing. Settlement with Noble Corporation On February 12, 2016, as part of the PSA, we entered into the Term Sheet with Noble with respect to the Noble Settlement Agreement, which we executed on April 29, 2016. The Noble Settlement Agreement will become effective upon the effective date of the Debtors’ plan of reorganization if such plan is substantially similar to the Debtors’ Plan filed with the PSA. In light of the Bankruptcy Court’s recent order on October 28, 2016, we intend to discuss this requirement with Noble if the Debtors elect to pursue a plan of reorganization that will not fulfill this condition to the Noble Settlement Agreement. The Noble Settlement Agreement provides that Noble may only unilaterally terminate the Noble Settlement Agreement if: (i) the Debtors’ file a plan of reorganization with the Bankruptcy Court that does not incorporate the terms and conditions of the Noble Settlement Agreement, (ii) the Debtors file a motion before the Bankruptcy Court to terminate their obligations under the Noble Settlement Agreement, or (iii) the release of claims by the Debtors in favor of Noble, as detailed below, is deemed invalid or unenforceable. Pursuant to the Noble Settlement Agreement, Noble will provide direct bonding in fulfillment of the requirements necessary to challenge tax assessments in Mexico relating to our business for the tax years 2005 through 2010. The Mexican Tax Assessments were originally assigned to us by Noble pursuant to the Tax Sharing Agreement which was entered into in connection with the Spin-Off. The Company has contested or intends to contest the Mexico Tax Assessments and may be required to post bonds in connection thereto. In addition, on August 5, 2016, we entered into a binding term sheet with respect to an amendment to the Noble Settlement Agreement (the “Noble Settlement Agreement Amendment”). Upon effectiveness of the Noble Settlement Agreement Amendment, certain provisions of the Tax Sharing Agreement will be further amended to permit us, at our option, to defer up to $5 million in amounts owed to Noble under the Tax Sharing Agreement with respect to the Mexican Tax Assessments (the “Deferred Noble Payment Amount”). In consideration for this deferral, we would issue an unsecured promissory note to Noble in the amount of the Deferred Noble Payment Amount (the “Noble Note”) which would be due and payable on the fourth anniversary of the effective date of the Amended Plan. The Noble Note would accrue interest, quarterly, to be paid either: (x) in cash at 12% per annum, or (y) in kind at 15% per annum (in our discretion). As of September 30, 2016, our estimated Mexican Tax Assessments totaled approximately $172 million , which is included in the tax assessment amounts disclosed above, with assessments for 2009 and 2010 yet to be received. Noble will be responsible for all of the ultimate tax liability for Noble legal entities and 50% of the ultimate tax liability for our legal entities relating to the Mexican Tax Assessments. In consideration for this support, we have agreed to release Noble, fully and unconditionally, from any and all claims in relation to the Spin-Off. Upon the effectiveness of the Noble Settlement Agreement, a material portion of our Mexican Tax Assessments, and any corresponding ultimate tax liability, will be assumed by Noble on the Effective Date in connection with certain amendments to the Tax Share Agreement executed between Noble and Paragon for the Spin-Off. Until such time, the current Tax Sharing Agreement remains in effect. Other Contingencies Our subsidiary used a commercial agent in Brazil in connection with Petrobras drilling contracts. The agent pleaded guilty in Brazil in connection with the award by Petrobras of a drilling contract to one of our competitors as part of a wider investigation of Petrobras’ business practices. The agent has represented a number of different companies in Brazil over many years, including several offshore drilling contractors. Since mid-2015, we have been conducting an independent review of our relationship with the agent and with Petrobras. Our review to date has found no evidence of wrongdoing by our employees or the commercial agent on our behalf. The SEC and the U.S. Department of Justice are aware of our review. We are currently party to several commercial disputes with a former customer relating to services we performed under our contracts with them. We believe we have a reasonable possibility of prevailing in these disputes and have not included these amounts in our provision for contingencies. In the event that we are unsuccessful in resolving these disputes, our ultimate liability could be up to $15 million . Insurance We maintain certain insurance coverage against specified marine perils, which include physical damage and loss of hire for certain units. We maintain insurance in the geographic areas in which we operate, although pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet or named windstorm perils with respect to our rigs cold-stacked in the U.S. Gulf of Mexico. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property on board our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows. Additionally, there can be no assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks. Other As of September 30, 2016 , we had letters of credit of $87 million and performance bonds totaling $115 million supported by surety bonds outstanding and backed by $75 million in letters of credit and $27 million held in restricted cash. Certain of our subsidiaries issued guarantees to the temporary import status of rigs or equipment imported into certain countries in which we operated. These guarantees are issued in lieu of payment of custom, value added or similar taxes in those countries. Separation Agreements In connection with the Spin-Off, we entered into several definitive agreements with Noble or its subsidiaries that, among other things, set forth the terms and conditions of the Spin-Off and provide a framework for our relationship with Noble after the Spin-Off, including the following agreements: • Master Separation Agreement; • Tax Sharing Agreement; • Employee Matters Agreement; • Transition Services Agreement relating to services Noble and Paragon will provide to each other on an interim basis; and • Transition Services Agreement relating to Noble’s Brazil operations. Pursuant to these agreements with Noble, our Condensed Consolidated Balance Sheets include the following balances due from and to Noble as of September 30, 2016 and December 31, 2015 : September 30, December 31, (In thousands) 2016 2015 Accounts receivable $ 13,960 $ 22,695 Other current assets 1,930 3,032 Other assets 7,039 6,686 Due from Noble $ 22,929 $ 32,413 Accounts payable $ 82 $ 211 Other current liabilities 2,403 6,067 Other liabilities 3,268 3,268 Due to Noble $ 5,753 $ 9,546 These receivables and payables primarily relate to rights and obligations under the Tax Sharing Agreement and the Transition Services Agreement (Brazil). Master Separation Agreement We entered into the Master Separation Agreement with Noble Corporation, Noble-Cayman, which provided for, among other things, the Distribution of our ordinary shares to Noble shareholders and the transfer to us of the assets and the assumption by us of the liabilities relating to our business and the responsibility of Noble for liabilities related to Noble’s, and in certain limited cases, our business. The Master Separation Agreement identified which assets and liabilities constitute our business and which assets and liabilities constitute Noble’s business. Tax Sharing Agreement We entered into the Tax Sharing Agreement with Noble, which governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes following the Distribution. Employee Matters Agreement We entered into an Employee Matters Agreement with Noble-Cayman to allocate liabilities and responsibilities relating to our employees and their participation in certain compensation and benefit plans maintained by Noble or a subsidiary of Noble. The Employee Matters Agreement provides that, following the Distribution, most of our employee benefits are provided under compensation and benefit plans adopted or assumed by us. In general, our plans are substantially similar to the plans of Noble or its subsidiaries that covered our employees prior to the completion of the Distribution. Transition Services Agreement We entered into a Transition Services Agreement with Noble-Cayman pursuant to which Noble-Cayman provides, on a transitional basis, certain administrative and other assistance, generally consistent with the services that Noble provided to us before the Separation, and we provide certain transition services to Noble and its subsidiaries. The charges for the transition services are generally intended to allow the party providing the services to fully recover the costs directly associated with providing the services, plus all out-of-pocket costs and expenses, generally without profit. The charges for each of the transition services generally are based on either a pre-determined flat fee or an allocation of the costs incurred, including certain fees and expenses of third-party service providers. We concluded providing services to Noble, and Noble concluded providing services to us, in the third quarter of 2016. Transition Services Agreement (Brazil) We and Noble-Cayman and certain other subsidiaries of Noble entered into a Transition Services Agreement (and a related rig charter) pursuant to which we provide certain transition services to Noble and its subsidiaries in connection with Noble’s Brazil operations. The provision of these rig-based and shore-based support services concluded in the second quarter of 2016 in conjunction with the termination of Noble’s business in Brazil.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows: Nine Months Ended September 30, (In thousands) 2016 2015 Accounts receivable $ 134,082 $ 177,765 Other current assets 29,602 (1,711 ) Other assets 8,254 (11,687 ) Accounts payable and accrued payroll (33,694 ) (25,003 ) Other current liabilities (9,295 ) (104,701 ) Other liabilities (6,748 ) (56,889 ) Prepaid and accrued reorganization items 26,082 — Net change in other assets and liabilities $ 148,283 $ (22,226 ) Supplemental information for non-cash activities: Assets related to Sale-Leaseback $ — $ 465,043 Adjustments to distribution by former parent — 9,493 Reclassification of Liabilities subject to compromise 2,343,963 — We received income tax refunds, net of payments, of approximately $10 million and made income tax payments of approximately $66 million during the nine months ended September 30, 2016 and 2015 , respectively.

Segment and Related Information

Segment and Related Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
SEGMENT AND RELATED INFORMATION	SEGMENT AND RELATED INFORMATION At September 30, 2016 , our contract drilling operations were reported as a single reportable segment, Contract Drilling Services, which reflects how our business is managed, and the fact that all of our drilling fleet is dependent upon the worldwide oil industry. The mobile offshore drilling units that comprise our offshore rig fleet operated in a single, global market for contract drilling services and are often redeployed globally due to changing demands of our customers, which consisted leading national, international and independent oil and gas companies throughout the world. Our Contract Drilling Services segment conducts contract drilling operations in the North Sea, the Middle East, India, Brazil, Mexico, West Africa and Southeast Asia.

Significant Accounting Polici27

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	All financial information presented in this Form 10-Q represents the consolidated results of operations, financial position and cash flows of Paragon. At the Spin-Off, Noble contributed its entire net parent investment in our Predecessor. Concurrent with the Spin-Off and in accordance with the terms of our Separation from Noble, certain assets and liabilities were transferred between us and Noble, which have been recorded as part of the net capital contributed by Noble.
New Accounting Pronouncements	In May 2014, the FASB issued ASU No. 2014-09, which creates ASC Topic 606, Revenue from Contracts with Customers and supersedes the revenue recognition requirements in Topic 605 and industry-specific standards that currently exist under U.S. GAAP. The amendments in this ASU are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The core principle of Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that the entity expects to be entitled to in exchange for those goods or services. Based on ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued in August 2015, the amendments in this ASU are effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The Company is not permitted to adopt this standard earlier than the original effective date for public entities. This ASU can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In March, April and May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients , respectively. These updates are not intended to change the core principles of ASU No. 2014-09 but instead clarify important aspects of the guidance and improve its operability and implementation on such topics as: principal versus agent considerations in revenue transactions, goods or services that are “separately identifiable” performance obligations, collectability, noncash consideration and presentation of sales taxes. These updates have the same effective date and transition requirements as the new revenue standard. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures and have not decided upon a method of adoption. In February 2016, the FASB issued ASU No. 2016-02, which creates ASC Topic 842, Leases . This ASU requires an entity to separate lease components from nonlease components in a contract. The lease components would be accounted for under ASU 2016-02, which requires lessees to recognize a right-of-use asset and a lease liability for capital and operating leases with lease terms greater than twelve months. Lessors must align certain requirements with the updates to lessee accounting standards and potentially derecognize a leased asset and recognize a net investment in the lease. This ASU also requires key qualitative and quantitative disclosures by lessess and lessors to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. We are evaluating the provisions of ASU 2016-02, concurrently with the provisions of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) since nonlease components would be accounted for under ASU 2014-09. This update is effective for financial statements issued for annual reporting periods beginning after December 15, 2018, and interim reporting periods within that reporting period. Early adoption is permitted. A modified retrospective approach is required. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation - Stock Compensation . The ASU includes provisions intended to simplify the accounting for and presentation of share-based payment transactions, including such areas as income tax effects, minimum statutory tax withholding requirements and classification of awards as either equity or liabilities, forfeitures, and the classification on the statement of cash flows. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. Transition methods vary for the related amendments. We do not expect that our adoption will have a material impact on our financial condition, results of operations, cash flows or financial disclosures. In June 2016, the FASB issued ASU No. 2016-13, which creates ASC Topic 326, Financial Instruments - Credit Losses . The new guidance introduces new accounting models for expected credit losses on financial instruments and applies to: (1) loans, accounts receivable, trade receivables and other financial assets measured at amortized cost, (2) loan commitments and certain other off-balance sheet credit exposures, (3) debt securities and other financial assets measured at fair value through other comprehensive income, and (4) beneficial interests in securitized financial assets. The scope of the new guidance is broad and is designed to improve the current accounting models for the impairment of financial assets. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. A modified retrospective approach is required. We are evaluating what impact the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures. In August 2016 the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , a consensus of the FASB’s Emerging Issues Task Force. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The ASU addresses how the following cash transactions are presented: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies; (6) distributions received from equity method investments; and (7) beneficial interests in securitization transactions. The ASU also addresses how to present cash receipts and cash payments that have aspects of multiple cash flow classifications. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. We do not expect that our adoption will have a material impact on our cash flows or financial disclosure. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. The guidance is effective for financial statements issued for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been made available for issuance. This ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are considering early adoption of this ASU effective January 1, 2017 and do not expect that our adoption will have a material impact on our financial condition, results of operations, cash flows or financial disclosures. In the first quarter of 2016, we adopted the guidance issued by the FASB in April 2015 in ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs are presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount and are being amortized over the life of the debt. In our December 31, 2015 Condensed Consolidated Balance Sheet presented in this Form 10-Q, we reclassified $21 million of debt issuance costs for our Senior Notes, Term Loan Facility, and Sale-Leaseback Transaction from “Other assets” to “Long-term debt” to conform to the current period presentation of debt issuance costs. Debt issuance costs related to line of credit arrangements will continue to be classified in “Other assets” on the Condensed Consolidated Balance Sheets; however, as a result of the filing of the Bankruptcy cases, debt issuance costs related to our Revolving Credit Facility have been classified as liabilities subject to compromise in the Condensed Consolidated Balance Sheet as of September 30, 2016 . For our debt securities that are considered to be liabilities subject to compromise, we ceased to amortize deferred debt issuance costs through interest expense.
Reorganization Accounting	In connection with filing chapter 11 of the Bankruptcy Code on February 14, 2016, the Company is subject to the requirements of FASB ASC 852, Reorganizations (“ASC 852”) . ASC852 is applicable to companies under bankruptcy protection and requires amendments to the presentation of key financial statement line items. ASC 852 generally does not change the manner in which financial statements are prepared. However, it does require that the financial statements for periods subsequent to the filing of the Bankruptcy cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Revenues, expenses, realized gains and losses, and provisions for losses that can be directly associated with the reorganization of the business must be reported separately as reorganization items in the consolidated statements of operations for the three and nine months ended September 30, 2016 . The balance sheet must distinguish pre-petition liabilities subject to compromise from both those pre-petition liabilities that are not subject to compromise and from post-petition liabilities. Liabilities that may be affected by the plan of reorganization must be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the plan of reorganization.
Allowance for Doubtful Accounts	We utilize the specific identification method for establishing and maintaining allowances for doubtful accounts. We review accounts receivable on a quarterly basis to determine the reasonableness of the allowance. The Company monitors the accounts receivable from its customers for any collectability issues. An allowance for doubtful accounts is established based on reviews of individual customer accounts, recent loss experience, current economic conditions, and other pertinent factors.
Impairment of Long-Lived Assets	We assess the recoverability of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project or major rig upgrade). An impairment loss on our property and equipment exists when the estimated fair value, which is based on estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition, is less than its carrying amount. Estimates of undiscounted future cash flows typically include (i) discrete financial forecasts, which rely on management’s estimates of revenue and operating expenses, (ii) long-term growth rates, and (iii) estimates of useful lives of the assets. Such estimates of future undiscounted cash flows are highly subjective and are based on numerous assumptions about future operations and market conditions.
Goodwill Impairment	For purposes of evaluating goodwill during the prior period, we have a single reporting unit, which represents our Contract Drilling Services provided by our fleet of mobile offshore drilling units. Given the events impacting the Company during the three months ended September 30, 2015, including the decrease in contractual activities, a sustained decline in the Company’s market capitalization and credit rating downgrades, the Company concluded that there were sufficient indicators to require a goodwill impairment analysis during the third quarter of 2015 in conjunction with our annual goodwill assessment. In accordance with the applicable accounting guidance, the Company performed a two-step impairment test.
Earnings/Loss Per Share	Our outstanding share-based payment awards currently consist solely of restricted stock units. These unvested restricted stock units, which contain non-forfeitable rights to dividends, are deemed to be participating securities and are included in the computation of earnings per share pursuant to the “two-class” method. The “two-class” method allocates undistributed earnings between ordinary shares and participating securities; however, in a period of net loss, losses are not allocated to our participating securities. No earnings were allocated to unvested share-based payment awards in our earnings per share calculation for the three and nine months ended September 30, 2016 and 2015 due to our net loss in each respective period. Weighted average shares outstanding, basic and diluted, has been computed based on the weighted average number of ordinary shares outstanding during the applicable periods. Restricted stock units do not represent ordinary shares outstanding until they are vested and converted into ordinary shares. The diluted earnings per share calculation under the two class method is the same as our basic earnings per share calculation as we currently have no stock options or other potentially dilutive securities outstanding.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares Available for Issuance and Outstanding Restricted Stock Units	Shares available for issuance and outstanding restricted stock units under our two equity incentive plans as of September 30, 2016 are as follows (excluding the impact of cash-settled awards): (In shares) Employee Plan Director Plan Shares available for future awards or grants 4,745,363 434,048 Outstanding unvested restricted stock units 3,887,027 —
Summary of Restricted Stock Activity	A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows: TVRSU’s Outstanding TVRSU Weighted Average Grant-Date Fair Value CS-TVRSU’s Outstanding Share Price (1) PVRSU’s Outstanding (2) PVRSU Weighted Average Grant-Date Fair Value Outstanding as of December 31, 2015 5,824,857 $ 5.34 2,647,565 849,484 $ 5.31 Awarded — — — — — Vested (2,481,499 ) 5.13 (858,459 ) — — Forfeited (235,543 ) 5.70 (407,449 ) (70,272 ) 11.00 Outstanding as of September 30, 2016 3,107,815 1,381,657 $ 0.62 779,212 (1) The share price represents the closing price of our shares on September 30, 2016 at which our CS-TVRSU’s are measured. (2) Includes 191,474 PVRSU’s outstanding as of September 30, 2016 for which vesting depends on the degree of achievement of a company-based performance criteria, the Company’s ROCE. The share amount of these PVRSU’s equals the units that would vest if the “maximum” level of performance is achieved based on ROCE. The minimum number of units is zero and the “target” level of performance is 50% of the maximum. During the nine months ended September 30, 2016 , 70,272 PVRSU’s were forfeited as a result of the Company not achieving the thresholds for vesting based on annualized ROCE performance over the term of the awards. For the remaining 587,738 PVRSU’s outstanding, the share amount equals the units that would vest if the “target” level of performance is achieved based on the Company’s achievement of a market-based objective, the Company’s total shareholder return (“TSR”). The minimum number of units is zero and the “maximum” level of performance is 200% of the target amount.

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted loss per share: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Allocation of loss - basic and diluted Net loss $ (63,618 ) $ (1,084,838 ) $ (93,937 ) $ (976,380 ) Earnings allocated to unvested share-based payment awards — — — — Net loss attributable to ordinary shareholders - basic and diluted $ (63,618 ) $ (1,084,838 ) $ (93,937 ) $ (976,380 ) Weighted average shares outstanding Basic and diluted 87,876 87,077 87,360 85,703 Weighted average unvested share-based payment awards 3,929 6,947 4,731 6,023 Loss per share Basic and diluted $ (0.72 ) $ (12.46 ) $ (1.08 ) $ (11.39 )

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt	A summary of long-term debt as of September 30, 2016 and December 31, 2015 is as follows: September 30, December 31, (In thousands) 2016 2015 Revolving Credit Facility (1) $ — $ 708,500 Term Loan Facility, bearing interest of 5.25% and 3.75% as of September 30, 2016 and December 31, 2015, respectively (1) — 641,875 Senior Notes due 2022, bearing fixed interest at 6.75% per annum (1) — 456,572 Senior Notes due 2024, bearing fixed interest at 7.25% per annum (1) — 527,010 Sale-Leaseback Transaction 209,926 268,688 Unamortized debt issuance costs (767 ) (23,572 ) Total debt 209,159 2,579,073 Less: Current maturities of long-term debt (30,659 ) (40,629 ) Long-term debt $ 178,500 $ 2,538,444 (1) See Note 8 - “Liabilities Subject to Compromise” for each of the respective September 30, 2016 balances identified above.
Schedule of Future Minimum Lease Payments for Capital Leases	The following table includes our minimum annual rental payments using weighted-average effective interest rates of 5.2% for the Prospector 1 and 7.5% for the Prospector 5 . (In millions) 2016 2017 2018 2019 2020 Thereafter Total Minimum annual rental payments $ 12 $ 41 $ 33 $ 31 $ 133 $ — $ 250

Liabilities Subject to Compro31

Liabilities Subject to Compromise (Tables)	9 Months Ended
	Sep. 30, 2016
Liabilities Subject to Compromise [Abstract]
Schedule of Liabilities Subject to Compromise	The following table reflects pre-petition liabilities that are subject to compromise included in our Condensed Consolidated Balance Sheets as of September 30, 2016 . See Note 7 - “Debt” for a specific discussion on the debt instruments and related balances subject to compromise: September 30, (In thousands) 2016 Revolving Credit Facility $ 708,500 Term Loan Facility 641,875 Senior Notes due 2022, bearing fixed interest at 6.75% per annum 456,572 Senior Notes due 2024, bearing fixed interest at 7.25% per annum 527,010 Interest payable on Senior Notes 37,168 Debt issuance costs on Revolving Credit Facility (5,891 ) Discount and debt issuance costs on Term Loan Facility (7,259 ) Debt issuance costs on Senior Notes (14,012 ) Liabilities subject to compromise $ 2,343,963

Reorganization Items (Tables)

Reorganization Items (Tables)	9 Months Ended
	Sep. 30, 2016
Reorganizations [Abstract]
Schedule of Reorganization Items	The following table summarizes the components included in “Reorganization items, net”: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2016 Professional fees $ 14,249 $ 46,747 Other 2,962 9,855 Total Reorganization items, net $ 17,211 $ 56,602

Condensed Combined Debtor-In-33

Condensed Combined Debtor-In-Possession Financial Information (Tables)	9 Months Ended
	Sep. 30, 2016
Condensed Financial Information of Debtor in Possession Disclosure [Abstract]
Debtors' Condensed Combined Statement of Operations	DEBTORS’ CONDENSED COMBINED STATEMENT OF OPERATIONS ( Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Operating revenues Contract drilling services $ 85,594 $ 417,259 Reimbursables and other 8,009 38,866 93,603 456,125 Operating costs and expenses Contract drilling services 82,802 270,407 Reimbursables 1,387 25,987 Depreciation and amortization 44,445 164,247 General and administrative 11,110 29,783 139,744 490,424 Operating loss before interest, reorganization items and income taxes (46,141 ) (34,299 ) Interest expense, net (contractual interest of $33,011 and $95,782 for the three and nine months ended September 30, 2016) (14,429 ) (50,771 ) Other, net 2,408 1,325 Reorganization items, net (15,046 ) (49,253 ) Loss before income taxes (73,208 ) (132,998 ) Income tax provision (1,912 ) (2,372 ) Net loss (75,120 ) (135,370 ) Equity in earnings of Non-Filing entities, net of tax 11,502 41,433 Net loss attributable to Paragon Offshore plc $ (63,618 ) $ (93,937 )
Debtor Condensed Combined Balance Sheet	DEBTORS’ CONDENSED COMBINED BALANCE SHEET ( Unaudited) (In thousands ) September 30, 2016 ASSETS Current assets Cash and cash equivalents $ 566,998 Accounts receivable, net of allowance for doubtful accounts of $33 million 114,222 Accounts receivable from Non-Filing entities 486,932 Prepaid and other current assets 35,343 Total current assets 1,203,495 Investment in Non-Filing entities 1,086,836 Notes receivable from Non-Filing entities 57,238 Property and equipment, at cost 2,154,078 Accumulated depreciation (1,677,888 ) Property and equipment, net 476,190 Other assets 40,987 Total assets $ 2,864,746 LIABILITIES AND EQUITY Current liabilities Current maturities of debt due to Non-Filing entities $ 3,606 Accounts payable 40,965 Accounts payable due to Non-Filing entities 778,456 Accrued payroll and related costs 26,200 Taxes payable 13,135 Interest payable 2,058 Other current liabilities 25,600 Total current liabilities 890,020 Long-term debt due to Non-Filing entities 5,640 Deferred income taxes 1,350 Other liabilities 26,406 Liabilities subject to compromise 2,343,963 Total liabilities 3,267,379 Equity Total deficit (402,633 ) Total liabilities and equity $ 2,864,746
Debtor Condensed Combined Statement of Cash Flows	DEBTORS’ CONDENSED COMBINED STATEMENT OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2016 Net cash provided by operating activities $ 148,301 Capital expenditures (30,817 ) Change in accrued capital expenditures (8,149 ) Change in restricted cash (9,254 ) Net cash used in investing activities (48,220 ) Net cash used in financing activities — Net change in cash and cash equivalents 100,081 Cash and cash equivalents, beginning of period 466,917 Cash and cash equivalents, end of period $ 566,998

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of Net Benefit Costs	Pension cost includes the following components: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Service cost $ 1,163 $ 1,361 $ 3,452 $ 4,097 Interest cost 575 493 1,706 1,484 Expected return on plan assets (460 ) (449 ) (1,366 ) (1,352 ) Amortization of prior service cost (5 ) (5 ) (14 ) (15 ) Amortization of net actuarial loss 193 195 573 579 Net pension expense $ 1,466 $ 1,595 $ 4,351 $ 4,793

Fair Value of Financial Instr35

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	The estimated fair value of our Senior Notes due July 15, 2022, excluding debt issuance costs of $6 million for September 30, 2016 and December 31, 2015 , respectively, and our Senior Notes due August 15, 2024, excluding debt issuance costs of $8 million for September 30, 2016 and December 31, 2015 , respectively, are as follows: Subject to Compromise Not Subject to Compromise September 30, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 6.75% Senior Notes due July 15, 2022 $ 456,572 $ 128,982 $ 456,572 $ 65,062 7.25% Senior Notes due August 15, 2024 527,010 149,473 527,010 75,099 Total senior unsecured notes $ 983,582 $ 278,455 $ 983,582 $ 140,161 The estimated fair value of our Term Loan Facility, bearing interest at 5.25% , excluding unamortized discount and debt issuance costs of $7 million and $8 million for September 30, 2016 and December 31, 2015 , respectively, is as follows: Subject to Compromise Not Subject to Compromise September 30, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Term Loan Facility $ 641,875 $ 152,044 $ 641,875 $ 235,889

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table sets forth the changes in the accumulated balances for each component of “Accumulated other comprehensive loss” (“AOCL”) for the nine months ended September 30, 2016 and 2015 . All amounts within the tables are shown net of tax. (In thousands) Defined Benefit Pension Items (1) Foreign Currency Items Total Balance as of December 31, 2014 $ (22,911 ) $ (14,233 ) $ (37,144 ) Activity during period: Other comprehensive loss before reclassification — (6,818 ) (6,818 ) Amounts reclassified from AOCL 570 — 570 Net other comprehensive income (loss) 570 (6,818 ) (6,248 ) Balance as of September 30, 2015 $ (22,341 ) $ (21,051 ) $ (43,392 ) Balance as of December 31, 2015 $ (20,351 ) $ (21,663 ) $ (42,014 ) Activity during period: Other comprehensive income before reclassification — (768 ) (768 ) Amounts reclassified from AOCL 455 — 455 Net other comprehensive income 455 (768 ) (313 ) Balance as of September 30, 2016 $ (19,896 ) $ (22,431 ) $ (42,327 ) (1) Defined benefit pension items relate to actuarial losses, prior service credits, and the amortization of actuarial losses and prior service credits. Reclassifications from AOCL are recognized as expense on our Condensed Consolidated Statements of Operations through either “Contract drilling services” or “General and administrative.” See Note 12, “Employee Benefit Plans” for additional information.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Related Party Transactions	Pursuant to these agreements with Noble, our Condensed Consolidated Balance Sheets include the following balances due from and to Noble as of September 30, 2016 and December 31, 2015 : September 30, December 31, (In thousands) 2016 2015 Accounts receivable $ 13,960 $ 22,695 Other current assets 1,930 3,032 Other assets 7,039 6,686 Due from Noble $ 22,929 $ 32,413 Accounts payable $ 82 $ 211 Other current liabilities 2,403 6,067 Other liabilities 3,268 3,268 Due to Noble $ 5,753 $ 9,546

Supplemental Cash Flow Inform38

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Effect of Changes in Other Assets and Liabilities on Cash Flows from Operating Activities	The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows: Nine Months Ended September 30, (In thousands) 2016 2015 Accounts receivable $ 134,082 $ 177,765 Other current assets 29,602 (1,711 ) Other assets 8,254 (11,687 ) Accounts payable and accrued payroll (33,694 ) (25,003 ) Other current liabilities (9,295 ) (104,701 ) Other liabilities (6,748 ) (56,889 ) Prepaid and accrued reorganization items 26,082 — Net change in other assets and liabilities $ 148,283 $ (22,226 ) Supplemental information for non-cash activities: Assets related to Sale-Leaseback $ — $ 465,043 Adjustments to distribution by former parent — 9,493 Reclassification of Liabilities subject to compromise 2,343,963 —

Organization, Basis of Presenta

Organization, Basis of Presentation and Current Events (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2015USD ($)	Sep. 30, 2016USD ($)rig	Sep. 30, 2015USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of jackups		34
Number of heavy duty jackups		2
Number of drillships		4
Number of semisubmersibles		2
Contract backlog | $		$ 365,000
Adjustments to distribution by former parent | $	$ 9,000	$ 0	$ 9,493
Prospector Offshore Drilling S.A.
Business Acquisition [Line Items]
Payments to acquire stock | $	$ 2,000

Organization, Basis of Presen40

Organization, Basis of Presentation and Current Events - Additional Information (Details) - USD ($)	Oct. 28, 2016	Dec. 31, 2016	Sep. 30, 2016	Aug. 10, 2016	Aug. 05, 2016	Feb. 12, 2016	Dec. 31, 2015	Mar. 31, 2015	Jul. 18, 2014
Loss Contingencies [Line Items]
Long-term debt			$ 209,159,000				$ 2,579,073,000
Tax Audit Claims | Tax Audit Claims in Mexico Result of Spin-Off
Loss Contingencies [Line Items]
Estimate of loss			31,000,000
Tax Audit Claims | Tax Audit Claims in Mexico Result of Spin-Off | Maximum
Loss Contingencies [Line Items]
Debt deferral option (up to)					$ 5,000,000
Tax Assessments | Mexican Tax Assessments
Loss Contingencies [Line Items]
Estimate of loss			$ 172,000,000
Percentage of predecessor tax liability			50.00%
Subsequent Event
Loss Contingencies [Line Items]
Lender termination period	3 days
Senior Notes
Loss Contingencies [Line Items]
Percentage of borrowings outstanding					69.00%	77.00%
Long-term debt			$ 1,000,000,000
Senior Notes | 6.75% Senior Notes due July 15, 2022
Loss Contingencies [Line Items]
Long-term debt						$ 457,000,000
Stated interest rate			6.75%			6.75%	6.75%	6.75%	6.75%
Senior Notes | 7.25% Senior Notes due August 15, 2024
Loss Contingencies [Line Items]
Long-term debt						$ 527,000,000
Stated interest rate			7.25%			7.25%	7.25%	7.25%	7.25%
Line of Credit | Acquired Senior Credit Facility
Loss Contingencies [Line Items]
Percentage of borrowings outstanding				100.00%		96.00%
Unsecured Debt | Noble Note | Forecast
Loss Contingencies [Line Items]
Debt percentage rate for repayment of cash or common shares		12.00%
Debt percentage for repayment in kind		15.00%

Significant Accounting Polici41

Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for doubtful accounts	$ 34,000,000		$ 34,000,000		$ 44,000,000
Recoveries			5,878,000	$ 0
Bad debt expense			0	26,479,000
Debt issuance cost, net	767,000		767,000		23,572,000
Accounting Standards Update 2015-03 | Other assets
Financing Receivable, Allowance for Credit Losses [Line Items]
Debt issuance cost, net					(21,000,000)
Accounting Standards Update 2015-03 | Long-term Debt
Financing Receivable, Allowance for Credit Losses [Line Items]
Debt issuance cost, net					$ 21,000,000
Contract Drilling Services Operating Costs and Expenses
Financing Receivable, Allowance for Credit Losses [Line Items]
Recoveries	$ 0		$ 6,000,000
Bad debt expense		$ 12,000,000		$ 27,000,000

Property and Equipment and Ot42

Property and Equipment and Other Assets (Details)	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jan. 31, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)reporting_unit	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)rig
Loss on Impairment
Number of floaters impaired | rig							5
Number of jackups impaired | rig							16
Number of jackups under construction | rig							3
Loss on impairments			$ 0	$ 1,150,846,000	$ 0	$ 1,152,547,000
Goodwill Impairment
Goodwill			0		$ 0		$ 0
Number of reporting units | reporting_unit					1
Goodwill impairment loss				37,000,000		37,000,000
Gain on Sale of Assets
Proceeds from sale of assets					$ 0	29,316,000
Gain (loss) on disposal of assets			$ 0	0	$ 0	12,717,000
Drilling Rigs
Loss on Impairment
Loss on impairments				$ 1,100,000,000		$ 1,100,000,000
Gain on Sale of Assets
Proceeds from sale of assets		$ 24,000,000
Gain (loss) on disposal of assets		$ 17,000,000
Drill Pipe Joints
Gain on Sale of Assets
Proceeds from sale of assets	$ 2,000,000
Gain (loss) on disposal of assets	$ (4,000,000)

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	0		0
Share-based compensation costs	$ 2	$ 3	$ 8	$ 13
Time-Vested Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			0
Vesting period			3 years
Unrecognized share-based amortization	$ 8		$ 8
RSU weighted-average period of recognition			1 year 1 month 6 days
Outstanding unvested restricted stock units (in shares)	3,107,815		3,107,815		5,824,857
Cash Settlement Time-Vested Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			0
Vesting period			3 years
Unrecognized share-based amortization	$ 0.6		$ 0.6
RSU weighted-average period of recognition			1 year 4 months 24 days
Outstanding unvested restricted stock units (in shares)	1,381,657		1,381,657		2,647,565
Performance-Vested Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)			0
Unrecognized share-based amortization	$ 0.3		$ 0.3
RSU weighted-average period of recognition			1 year
Outstanding unvested restricted stock units (in shares)	779,212		779,212		849,484
Performance-Vested Restricted Shares - ROCE
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock units (in shares)	191,474		191,474
Estimated forfeiture rate	100.00%		100.00%
Performance-Vested Restricted Shares - TSR
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock units (in shares)	587,738		587,738

Share-Based Compensation - Shar

Share-Based Compensation - Shares Available for Issuance and Outstanding Restricted Stock Units (Details)	9 Months Ended
	Sep. 30, 2016incentive_planshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock incentive plans | incentive_plan	2
Employee Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future awards or grants (in shares)	4,745,363
Employee Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock units (in shares)	3,887,027
Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future awards or grants (in shares)	434,048
Director Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock units (in shares)	0

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Activity (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2016$ / sharesshares	Sep. 30, 2016$ / sharesshares
RSU's Outstanding
Awarded (in shares)	0	0
Time-Vested Restricted Shares
RSU's Outstanding
Outstanding as of beginning of period (in shares)		5,824,857
Awarded (in shares)		0
Vested (in shares)		(2,481,499)
Forfeited (in shares)		(235,543)
Outstanding as of end of period (in shares)	3,107,815	3,107,815
TVRSU Weighted Average Grant-Date Fair Value
Outstanding as of beginning of period (in dollars per shares) | $ / shares		$ 5.34
Awarded (in dollars per share) | $ / shares		0
Vested (in dollars per share) | $ / shares		5.13
Forfeited (in dollars per share) | $ / shares		5.70
Outstanding as of end of period (in dollars per share) | $ / shares
Cash Settlement Time-Vested Restricted Shares
RSU's Outstanding
Outstanding as of beginning of period (in shares)		2,647,565
Awarded (in shares)		0
Vested (in shares)		(858,459)
Forfeited (in shares)		(407,449)
Outstanding as of end of period (in shares)	1,381,657	1,381,657
Share Price
Share price, end of period (in dollars per share) | $ / shares	$ 0.62	$ 0.62
Performance-Vested Restricted Shares
RSU's Outstanding
Outstanding as of beginning of period (in shares)		849,484
Awarded (in shares)		0
Vested (in shares)		0
Forfeited (in shares)		(70,272)
Outstanding as of end of period (in shares)	779,212	779,212
TVRSU Weighted Average Grant-Date Fair Value
Outstanding as of beginning of period (in dollars per shares) | $ / shares		$ 5.31
Awarded (in dollars per share) | $ / shares		0
Vested (in dollars per share) | $ / shares		0
Forfeited (in dollars per share) | $ / shares		11
Outstanding as of end of period (in dollars per share) | $ / shares
Performance-Vested Restricted Shares - ROCE
RSU's Outstanding
Outstanding as of end of period (in shares)	191,474	191,474
Share Price
Minimum number of performance vested shares (in shares)		0
Target level of performance, percentage		50.00%
Performance-Vested Restricted Shares - TSR
RSU's Outstanding
Outstanding as of end of period (in shares)	587,738	587,738
Share Price
Minimum number of performance vested shares (in shares)		0
Target level of performance, percentage		200.00%

Loss Per Share - Computation of

Loss Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Allocation of loss - basic and diluted
Net loss	$ (63,618)	$ (1,084,838)	$ (93,937)	$ (976,380)
Earnings allocated to unvested share-based payment awards, basic	0	0	0	0
Earnings allocated to unvested share-based payment awards, diluted	0	0	0	0
Net loss attributable to ordinary shareholders - basic	(63,618)	(1,084,838)	(93,937)	(976,380)
Net loss attributable to ordinary shareholders - diluted	$ (63,618)	$ (1,084,838)	$ (93,937)	$ (976,380)
Weighted-average shares outstanding
Basic and diluted (in shares)	87,876	87,077	87,360	85,703
Weighted average unvested share-based payment awards (in shares)	3,929	6,947	4,731	6,023
Loss per share
Basic and diluted (in dollars per share)	$ (0.72)	$ (12.46)	$ (1.08)	$ (11.39)

Debt - Summary of Long-Term Deb

Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Feb. 12, 2016	Dec. 31, 2015	Mar. 31, 2015	Jul. 18, 2014
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (767)		$ (23,572)
Long-term Debt	209,159		2,579,073
Less: Current maturities of long-term debt	(30,659)		(40,629)
Long-term debt	178,500		2,538,444
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	0		708,500
Secured Debt | Term Loan Facility, bearing interest of 5.25% and 3.75% as of September 30, 2016 and December 31, 2015, respectively
Debt Instrument [Line Items]
Total debt	$ 0		$ 641,875
Term loan facility effective interest rate	5.25%		3.75%
Senior Notes
Debt Instrument [Line Items]
Long-term Debt	$ 1,000,000
Senior Notes | Senior Notes due 2022, bearing fixed interest at 6.75% per annum
Debt Instrument [Line Items]
Total debt	0		$ 456,572
Unamortized debt issuance costs	$ (6,000)		$ (6,000)
Long-term Debt		$ 457,000
Stated interest rate	6.75%	6.75%	6.75%	6.75%	6.75%
Senior Notes | Senior Notes due 2024, bearing fixed interest at 7.25% per annum
Debt Instrument [Line Items]
Total debt	$ 0		$ 527,010
Unamortized debt issuance costs	$ (8,000)		$ (8,000)
Long-term Debt		$ 527,000
Stated interest rate	7.25%	7.25%	7.25%	7.25%	7.25%
Sale-Leaseback Transaction | Sale-Leaseback Transaction
Debt Instrument [Line Items]
Total debt	$ 209,926		$ 268,688

Debt - Revolving Credit Facilit

Debt - Revolving Credit Facility, Term Loan Facility and Senior Notes (Details) - USD ($)	Jul. 18, 2014	Jun. 17, 2014	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Feb. 12, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Aggregate letters of credit issued			$ 87,000,000			$ 87,000,000
Long-term debt			209,159,000			209,159,000			$ 2,579,073,000
Contractual interest			36,610,000			103,729,000
Debt issuance cost, net			767,000			767,000			$ 23,572,000
Recognized gain on debt retirement as a result of repurchase			0	$ 0		0	$ 4,345,000
Predecessor
Debt Instrument [Line Items]
Repayments of intercompany indebtedness	$ 1,700,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum amount available under credit facility		$ 800,000,000
Revolving credit facility maturity period		5 years
Outstanding revolving credit facility			$ 709,000,000			$ 709,000,000
Weighted average interest rate			3.03%			3.03%
Aggregate letters of credit issued			$ 87,000,000			$ 87,000,000
Line of Credit | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Interest rate on borrowings outstanding		1.50%
Line of Credit | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Interest rate on borrowings outstanding		2.50%
Line of Credit | Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Interest rate on borrowings outstanding		1.50%
Line of Credit | Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Interest rate on borrowings outstanding		2.50%
Senior Notes
Debt Instrument [Line Items]
Debt face amount	1,080,000,000
Long-term debt			1,000,000,000			1,000,000,000
Contractual interest			$ 18,000,000			$ 44,000,000
Principal amount of repurchased and cancelled Senior Notes					$ 11,000,000
Repurchase of Senior Notes					7,000,000
Recognized gain on debt retirement as a result of repurchase					$ 4,000,000
Senior Notes | 6.75% Senior Notes due July 15, 2022
Debt Instrument [Line Items]
Debt face amount	$ 500,000,000
Stated interest rate	6.75%		6.75%		6.75%	6.75%		6.75%	6.75%
Long-term debt								$ 457,000,000
Debt issuance cost, net			$ 6,000,000			$ 6,000,000			$ 6,000,000
Principal amount of repurchased and cancelled Senior Notes					$ 1,000,000
Senior Notes | 7.25% Senior Notes due August 15, 2024
Debt Instrument [Line Items]
Debt face amount	$ 580,000,000
Stated interest rate	7.25%		7.25%		7.25%	7.25%		7.25%	7.25%
Long-term debt								$ 527,000,000
Debt issuance cost, net			$ 8,000,000			$ 8,000,000			$ 8,000,000
Principal amount of repurchased and cancelled Senior Notes					$ 10,000,000
Secured Debt | Term Loan Facility
Debt Instrument [Line Items]
Debt face amount	$ 650,000,000
Quarterly debt principal payments	$ 1,600,000
Original issue discount	0.50%
Secured Debt | LIBOR | Term Loan Facility
Debt Instrument [Line Items]
Interest rate on borrowings outstanding	2.75%
Minimum LIBOR rate	1.00%
Secured Debt | Base Rate | Term Loan Facility
Debt Instrument [Line Items]
Interest rate on borrowings outstanding	1.75%

Debt - Sale-Leaseback Transacti

Debt - Sale-Leaseback Transaction, Additional Information (Details)	Jul. 24, 2015USD ($)rig	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Sale Leaseback Transaction [Line Items]
Sale-leaseback transaction amount	$ 300,000,000
Number of jackup units in sale and lease back transaction | rig	2
Term of sale leaseback contract	5 years
Net proceeds from sale and lease back transaction	$ 292,000,000			$ 0	$ 291,576,000
Restricted cash, current		$ 26,047,000		26,047,000		$ 3,000,000
Restricted cash, noncurrent		36,249,000		$ 36,249,000		25,030,000
Percentage of excess cash amounts (up to)				25.00%
Prospector 1
Sale Leaseback Transaction [Line Items]
Rental prepayments		4,000,000		$ 11,000,000
Cash reserve		11,500,000		11,500,000
Prospector 1 | Maximum
Sale Leaseback Transaction [Line Items]
Lease obligation (maximum)		88,000,000		88,000,000
Prospector 5
Sale Leaseback Transaction [Line Items]
Rental prepayments		7,000,000		21,000,000
Lease obligation (maximum)		88,000,000		88,000,000
Cash reserve		11,500,000		11,500,000
Lease Agreements | Other assets
Sale Leaseback Transaction [Line Items]
Restricted cash, current		8,000,000		8,000,000		3,000,000
Restricted cash, noncurrent		27,000,000		27,000,000		$ 25,000,000
SinoEnergy Subsidiaries
Sale Leaseback Transaction [Line Items]
Rental payments, including interest		$ 24,000,000	$ 13,000,000	$ 71,000,000	$ 13,000,000

Debt - Schedule of Minimum Annu

Debt - Schedule of Minimum Annual Rental Payments (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Prospector 1
Sale Leaseback Transaction [Line Items]
Weighted average interest rate	5.20%
Prospector 5
Sale Leaseback Transaction [Line Items]
Weighted average interest rate	7.50%
Total S.A.
Sale Leaseback Transaction [Line Items]
2,016	$ 12
2,017	41
2,018	33
2,019	31
2,020	133
Thereafter	0
Total	$ 250

Liabilities Subject to Compro51

Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Feb. 12, 2016	Dec. 31, 2015	Mar. 31, 2015	Jul. 18, 2014
Debt Instrument [Line Items]
Liabilities subject to compromise	$ 2,343,963		$ 0
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	708,500
Debt issuance costs	(5,891)
Secured Debt
Debt Instrument [Line Items]
Debt issuance costs	(7,259)
Secured Debt | Term Loan Facility
Debt Instrument [Line Items]
Long-term debt	641,875
Senior Notes
Debt Instrument [Line Items]
Interest payable on Senior Notes	37,168
Debt issuance costs	(14,012)
Senior Notes | 6.75% Senior Notes due July 15, 2022
Debt Instrument [Line Items]
Long-term debt	$ 456,572
Stated interest rate	6.75%	6.75%	6.75%	6.75%	6.75%
Senior Notes | 7.25% Senior Notes due August 15, 2024
Debt Instrument [Line Items]
Long-term debt	$ 527,010
Stated interest rate	7.25%	7.25%	7.25%	7.25%	7.25%

Reorganization Items (Details)

Reorganization Items (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reorganizations [Abstract]
Professional fees	$ 14,249		$ 46,747
Other	2,962		9,855
Total Reorganization items, net	$ 17,211	$ 0	56,602	$ 0
Professional fees			31,000
Accrued expenses			18,000
Non-cash amortization			$ 8,000

Condensed Combined Debtor-In-53

Condensed Combined Debtor-In-Possession Financial Information - Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenues
Contract drilling services	$ 116,674	$ 338,710	$ 516,182	$ 1,101,618
Reimbursables and other	3,887	23,410	42,201	70,023
Total operating revenues	125,078	368,973	575,133	1,192,865
Operating costs and expenses
Contract drilling services	85,109	190,536	289,446	612,610
Reimbursables	2,778	19,517	35,870	58,173
Depreciation and amortization	50,270	95,826	181,732	280,574
General and administrative	11,464	12,800	33,459	41,901
Total operating costs and expenses	154,587	1,474,317	554,725	2,144,829
Operating income (loss) before interest, reorganization items and income taxes	(29,509)	(1,105,344)	20,408	(951,964)
Interest expense, net (contractual interest of $33,011 and $95,782 for the three and nine months ended September 30, 2016)	(18,446)	(33,900)	(58,299)	(93,107)
Other, net	2,804	(983)	1,512	1,421
Reorganization items, net	(17,211)	0	(56,602)	0
Loss before income taxes	(62,362)	(1,140,227)	(92,981)	(1,043,650)
Income tax provision	(1,256)	55,389	(956)	67,301
Net loss	(63,618)	(1,084,838)	(93,937)	(976,349)
Net loss attributable to Paragon	(63,618)	$ (1,084,838)	(93,937)	$ (976,380)
Contractual interest	36,610		103,729
Subsidiaries in Bankruptcy Proceedings
Operating revenues
Contract drilling services	85,594		417,259
Reimbursables and other	8,009		38,866
Total operating revenues	93,603		456,125
Operating costs and expenses
Contract drilling services	82,802		270,407
Reimbursables	1,387		25,987
Depreciation and amortization	44,445		164,247
General and administrative	11,110		29,783
Total operating costs and expenses	139,744		490,424
Operating income (loss) before interest, reorganization items and income taxes	(46,141)		(34,299)
Interest expense, net (contractual interest of $33,011 and $95,782 for the three and nine months ended September 30, 2016)	(14,429)		(50,771)
Other, net	2,408		1,325
Reorganization items, net	(15,046)		(49,253)
Loss before income taxes	(73,208)		(132,998)
Income tax provision	(1,912)		(2,372)
Net loss	(75,120)		(135,370)
Equity in earnings of Non-Filing entities, net of tax	11,502		41,433
Net loss attributable to Paragon	(63,618)		(93,937)
Contractual interest	$ 33,011		$ 95,782

Condensed Combined Debtor-In-54

Condensed Combined Debtor-In-Possession Financial Information - Statement of Financial Position (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 879,963	$ 773,571	$ 732,960	$ 56,772
Accounts receivable, net of allowance for doubtful accounts of $33 million	138,121	266,325
Prepaid and other current assets	73,730	110,027
Total current assets	1,117,861	1,152,923
Property and equipment, at cost	2,687,308	2,652,537
Accumulated depreciation	(1,714,751)	(1,541,439)
Property and equipment, net	972,557	1,111,098
Other long-term assets	42,041	73,796
Total assets	2,168,708	2,362,847
Current liabilities
Accounts payable	69,665	85,374
Accrued payroll and related costs	39,570	48,246
Taxes payable	30,930	34,381
Interest payable	400	34,085
Other current liabilities	32,800	41,174
Total current liabilities	204,024	283,889
Deferred income taxes	5,188	9,373
Other liabilities	30,937	37,731
Liabilities subject to compromise	2,343,963	0
Total liabilities	2,762,612	2,869,437
Equity
Total deficit	(593,904)	(506,590)	$ (488,003)	$ 494,249
Total liabilities and equity	2,168,708	2,362,847
Allowance for doubtful accounts	34,000	44,000
Subsidiaries in Bankruptcy Proceedings
Current assets
Cash and cash equivalents	566,998	$ 466,917
Accounts receivable, net of allowance for doubtful accounts of $33 million	114,222
Accounts receivable from Non-Filing entities	486,932
Prepaid and other current assets	35,343
Total current assets	1,203,495
Investment in Non-Filing entities	1,086,836
Notes receivable from Non-Filing entities	57,238
Property and equipment, at cost	2,154,078
Accumulated depreciation	(1,677,888)
Property and equipment, net	476,190
Other long-term assets	40,987
Total assets	2,864,746
Current liabilities
Current maturities of debt due to Non-Filing entities	3,606
Accounts payable	40,965
Accounts payable due to Non-Filing entities	778,456
Accrued payroll and related costs	26,200
Taxes payable	13,135
Interest payable	2,058
Other current liabilities	25,600
Total current liabilities	890,020
Long-term debt due to Non-Filing entities	5,640
Deferred income taxes	1,350
Other liabilities	26,406
Liabilities subject to compromise	2,343,963
Total liabilities	3,267,379
Equity
Total deficit	(402,633)
Total liabilities and equity	2,864,746
Allowance for doubtful accounts	$ 33,000

Condensed Combined Debtor-in-55

Condensed Combined Debtor-in-Possession Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	$ 244,636	$ 386,751
Capital expenditures	(36,201)	(156,753)
Change in accrued capital expenditures	(8,612)	(11,768)
Change in restricted cash	(34,266)	(17,297)
Net cash used in investing activities	(79,079)	(158,687)
Net cash used in financing activities	(59,165)	448,124
Net change in cash and cash equivalents	106,392	676,188
Cash and cash equivalents, beginning of period	773,571	56,772
Cash and cash equivalents, end of period	879,963	$ 732,960
Subsidiaries in Bankruptcy Proceedings
Condensed Financial Statements, Captions [Line Items]
Net cash provided by operating activities	148,301
Capital expenditures	(30,817)
Change in accrued capital expenditures	(8,149)
Change in restricted cash	(9,254)
Net cash used in investing activities	(48,220)
Net cash used in financing activities	0
Net change in cash and cash equivalents	100,081
Cash and cash equivalents, beginning of period	466,917
Cash and cash equivalents, end of period	$ 566,998

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ (1,256)	$ 55,389	$ (956)	$ 67,301
Reserve for uncertain tax positions, including interest and penalties	19,000		19,000		$ 19,000
Unrecognized tax benefits that would impact effective tax rate	$ 19,000		$ 19,000

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)pension_plan	Sep. 30, 2015USD ($)
Defined Benefit Plan Disclosure [Line Items]
Other postretirement benefit expense		$ 0.7	$ 0.6
Non-U.S. Defined Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Number of plans | pension_plan		2
Employer contributions to non-U.S. pension plans	$ 6	$ 6

Employee Benefit Plans - Pensio

Employee Benefit Plans - Pension Cost Components (Details) - Non-U.S. Defined Benefit Plan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 1,163	$ 1,361	$ 3,452	$ 4,097
Interest cost	575	493	1,706	1,484
Expected return on plan assets	(460)	(449)	(1,366)	(1,352)
Amortization of prior service cost	(5)	(5)	(14)	(15)
Amortization of net actuarial loss	193	195	573	579
Net pension expense	$ 1,466	$ 1,595	$ 4,351	$ 4,793

Derivative Instruments and He59

Derivative Instruments and Hedging Activities (Details) - Prospector Offshore Drilling S.A. - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Nov. 17, 2014
Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fixed interest rate			1.512%
Interest rate swaps | Interest expense, net of amount capitalized
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value settlement and accrued interest	$ 1,000,000
Gain on derivative		$ 1,000,000
Interest rate swaps | Maximum
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding derivative contracts			$ 135,000,000
Line of Credit | 2018 Senior Secured Credit Facility
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum amount available under credit facility			$ 270,000,000
Minimum percentage of debt required to hedge			50.00%

Fair Value of Financial Instr60

Fair Value of Financial Instruments - (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Feb. 12, 2016	Dec. 31, 2015	Mar. 31, 2015	Jul. 18, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt issuance cost, net	$ 767		$ 23,572
Senior Notes | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	983,582		983,582
Senior Notes | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	278,455		140,161
Senior Notes | 6.75% Senior Notes due July 15, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt issuance cost, net	$ 6,000		$ 6,000
Stated interest rate	6.75%	6.75%	6.75%	6.75%	6.75%
Senior Notes | 6.75% Senior Notes due July 15, 2022 | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 456,572		$ 456,572
Senior Notes | 6.75% Senior Notes due July 15, 2022 | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	128,982		65,062
Senior Notes | 7.25% Senior Notes due August 15, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt issuance cost, net	$ 8,000		$ 8,000
Stated interest rate	7.25%	7.25%	7.25%	7.25%	7.25%
Senior Notes | 7.25% Senior Notes due August 15, 2024 | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 527,010		$ 527,010
Senior Notes | 7.25% Senior Notes due August 15, 2024 | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 149,473		$ 75,099
Secured Debt | Term Loan Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Term loan facility effective interest rate	5.25%		3.75%
Unamortized discount and debt issuance costs	$ 7,000		$ 8,000
Secured Debt | Term Loan Facility | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	641,875		641,875
Secured Debt | Term Loan Facility | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 152,044		$ 235,889

Accumulated Other Comprehensi61

Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period			$ (506,590)	$ 494,249
Activity during period:
Total other comprehensive loss, net	$ (8,850)	$ (4,955)	(313)	(6,248)
End of period	(593,904)	(488,003)	(593,904)	(488,003)
Defined Benefit Pension Items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period			(20,351)	(22,911)
Activity during period:
Other comprehensive loss before reclassification			0	0
Amounts reclassified from AOCL			455	570
Total other comprehensive loss, net			455	570
End of period	(19,896)	(22,341)	(19,896)	(22,341)
Foreign Currency Items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period			(21,663)	(14,233)
Activity during period:
Other comprehensive loss before reclassification			(768)	(6,818)
Amounts reclassified from AOCL			0	0
Total other comprehensive loss, net			(768)	(6,818)
End of period	(22,431)	(21,051)	(22,431)	(21,051)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period			(42,014)	(37,144)
Activity during period:
Other comprehensive loss before reclassification			(768)	(6,818)
Amounts reclassified from AOCL			455	570
Total other comprehensive loss, net			(313)	(6,248)
End of period	$ (42,327)	$ (43,392)	$ (42,327)	$ (43,392)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	5 Months Ended	9 Months Ended	21 Months Ended
	Dec. 31, 2016	Sep. 30, 2016USD ($)rig	Sep. 30, 2016USD ($)	Aug. 05, 2016USD ($)
Other Commitments [Line Items]
Shipyard and purchase commitments		$ 592,000,000	$ 592,000,000
Letters of credit, amount outstanding		87,000,000	87,000,000
Performance bonds		115,000,000	115,000,000
Letter of Credit
Other Commitments [Line Items]
Letters of credit backing performance bonds		75,000,000	75,000,000
Cash Deposit
Other Commitments [Line Items]
Letters of credit backing performance bonds		27,000,000	27,000,000
Forecast | Noble Note | Unsecured Debt
Other Commitments [Line Items]
Debt percentage rate for repayment of cash or common shares	12.00%
Debt percentage for repayment in kind	15.00%
Tax Audit Claims in Mexico and Brazil | Tax Audit Claims
Other Commitments [Line Items]
Estimate of loss		351,000,000	351,000,000
Claims subject to indemnity by Noble		90,000,000	90,000,000
Petrobras | Withholding Taxes
Other Commitments [Line Items]
Estimate of loss		87,000,000	87,000,000
Claims subject to indemnity by Noble		25,000,000	25,000,000
Tax Audit Claims in Mexico Result of Spin-Off | Tax Audit Claims
Other Commitments [Line Items]
Estimate of loss		31,000,000	31,000,000
Mexican Tax Assessments | Tax Assessments
Other Commitments [Line Items]
Estimate of loss		$ 172,000,000	$ 172,000,000
Percentage of predecessor tax liability		50.00%	50.00%
Maximum | International Commercial Claims
Other Commitments [Line Items]
Estimate of loss		$ 15,000,000	$ 15,000,000
Maximum | Tax Audit Claims in Mexico Result of Spin-Off | Tax Audit Claims
Other Commitments [Line Items]
Debt deferral option (up to)				$ 5,000,000
Secretariat of the Federal Revenue Bureau of Brazil
Other Commitments [Line Items]
Withholding tax expense			$ 8,000,000
Secretariat of the Federal Revenue Bureau of Brazil | Minimum | Withholding Taxes
Other Commitments [Line Items]
Withholding tax, percentage of contractual value			15.00%
Secretariat of the Federal Revenue Bureau of Brazil | Maximum | Withholding Taxes
Other Commitments [Line Items]
Withholding tax, percentage of contractual value			25.00%
Prospector Offshore Drilling S.A.
Other Commitments [Line Items]
Number of jackups under construction | rig		3
Future Capital Purchases
Other Commitments [Line Items]
Shipyard and purchase commitments		$ 579,000,000	$ 579,000,000
Due in 2016		192,000,000	192,000,000
Due in 2017		$ 387,000,000	$ 387,000,000

Commitments and Contingencies63

Commitments and Contingencies - Balance Sheet Position of Balances Due From and To Noble (Details) - Noble Corporation PLC - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Commitments [Line Items]
Due from Noble	$ 22,929	$ 32,413
Due to Noble	5,753	9,546
Accounts receivable
Other Commitments [Line Items]
Due from Noble, current	13,960	22,695
Other current assets
Other Commitments [Line Items]
Due from Noble, current	1,930	3,032
Other assets
Other Commitments [Line Items]
Other assets	7,039	6,686
Accounts payable
Other Commitments [Line Items]
Due to Noble, current	82	211
Other current liabilities
Other Commitments [Line Items]
Due to Noble, current	2,403	6,067
Other liabilities
Other Commitments [Line Items]
Other liabilities	$ 3,268	$ 3,268

Supplemental Cash Flow Inform64

Supplemental Cash Flow Information - Effect of Changes in Other Assets and Liabilities on Cash Flows from Operating Activities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Accounts receivable		$ 134,082	$ 177,765
Other current assets		29,602	(1,711)
Other assets		8,254	(11,687)
Accounts payable and accrued payroll		(33,694)	(25,003)
Other current liabilities		(9,295)	(104,701)
Other liabilities		(6,748)	(56,889)
Prepaid and accrued reorganization items		26,082	0
Net change in other assets and liabilities		148,283	(22,226)
Assets related to Sale-Leaseback		0	465,043
Adjustments to distribution by former parent	$ 9,000	0	9,493
Reclassification of Liabilities subject to compromise		2,343,963	0
Income tax payments		$ 10,000	$ 66,000

Segment and Related Informati65

Segment and Related Information (Details)	9 Months Ended
	Sep. 30, 2016segment
Segment Reporting [Abstract]
Number of reportable segments	1