| Document and Entity Information (USD $) | ||
| 9 Months Ended
Sep. 30, 2009 | Oct. 21, 2009
| |
| Document Information | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | 2009-09-30 | |
| Entity Information | ||
| Entity Registrant Name | ENSCO International Incorporated | |
| Entity Central Index Key | 0000314808 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 142,506,762 |
| Condensed Consolidated Statements of Income (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Operating revenues | 425.4 | 619.5 | 1446.3 | 1788.8 |
| Operating Expenses | ||||
| Contract drilling (exclusive of depreciation) | 183.3 | 185.2 | 524.8 | 566.8 |
| Depreciation expense | 53.3 | 47 | 149.8 | 139.4 |
| General and administrative | 13.6 | 15.2 | 41.6 | 41.7 |
| Total operating expenses | 250.2 | 247.4 | 716.2 | 747.9 |
| Operating income | 175.2 | 372.1 | 730.1 | 1040.9 |
| Other income (expense), net | 3.6 | -6.5 | 6.2 | 4.8 |
| Income from continuing operations before income taxes | 178.8 | 365.6 | 736.3 | 1045.7 |
| Provision For Income Taxes | ||||
| Current income tax expense | 17.3 | 59.1 | 104.9 | 175.9 |
| Deferred income tax expense | 11.1 | 9.7 | 28.9 | 16.1 |
| Total provision for income taxes | 28.4 | 68.8 | 133.8 | 192 |
| Income from continuing operations | 150.4 | 296.8 | 602.5 | 853.7 |
| Discontinued Operations | ||||
| Income (loss) from discontinued operations, net | 0.4 | 10.4 | -16.4 | 25.1 |
| Loss on disposal of discontinued operations, net | 0 | -23.5 | -11.8 | -23.5 |
| Total income (loss) from discontinued operations, net | 0.4 | -13.1 | -28.2 | 1.6 |
| Net income | 150.8 | 283.7 | 574.3 | 855.3 |
| Less: Net income attributable to noncontrolling interests | -1.1 | -1.4 | -3.6 | -4.3 |
| Net income attributable to Ensco | 149.7 | 282.3 | 570.7 | 851 |
| Earnings (Loss) Per Common Share - Basic | ||||
| Continuing operations | 1.05 | 2.07 | 4.22 | 5.91 |
| Discontinued operations | $0 | -0.09 | -0.2 | 0.01 |
| Total earnings (loss) per common share - basic | 1.05 | 1.98 | 4.02 | 5.92 |
| Earnings (Loss) Per Common Share - Diluted | ||||
| Continuing operations | 1.05 | 2.06 | 4.21 | 5.9 |
| Discontinued operations | $0 | -0.09 | -0.2 | 0.01 |
| Total earnings (loss) per common share - diluted | 1.05 | 1.97 | 4.01 | 5.91 |
| Net Income Attributable To Ensco Common Shares | ||||
| Basic | 147.8 | 278.8 | 563.7 | 842.1 |
| Diluted | 147.8 | 278.8 | 563.7 | 842.1 |
| Weighted-Average Common Shares Outstanding | ||||
| Basic | 140.7 | 141.1 | 140.3 | 142.2 |
| Diluted | 140.7 | 141.4 | 140.4 | 142.6 |
| Cash dividends per common share | 0.025 | 0.025 | 0.075 | 0.075 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Millions | Sep. 30, 2009
| Dec. 31, 2008
|
| Current Assets | ||
| Cash and cash equivalents | 1017.2 | 789.6 |
| Accounts receivable, net of allowance of $25.1 and $20.6 | 341.2 | 482.7 |
| Other | 192.4 | 128.6 |
| Total current assets | 1550.8 | 1400.9 |
| Noncurrent Assets | ||
| Property and equipment, at cost | 5951.8 | 5376.3 |
| Less accumulated depreciation | 1621.3 | 1,505 |
| Property and equipment, net | 4330.5 | 3871.3 |
| Goodwill | 336.2 | 336.2 |
| Long-term investments | 60.9 | 64.2 |
| Other assets, net | 176.8 | 157.5 |
| Total assets | 6455.2 | 5830.1 |
| Current Liabilities | ||
| Accounts payable | 28.8 | 30 |
| Accrued liabilities and other | 357 | 380.7 |
| Current maturities of long-term debt | 17.2 | 17.2 |
| Total current liabilities | 403 | 427.9 |
| Noncurrent Liabilities | ||
| Long-term debt | 265.8 | 274.3 |
| Deferred income taxes | 372 | 340.5 |
| Other liabilities | 122.9 | 103.8 |
| Ensco Stockholders' Equity | ||
| Preferred stock, $1 par value, 20.0 shares authorized and none issued | 0 | 0 |
| Common stock, $.10 par value, 250.0 shares authorized, 142.6 and 181.9 shares issued | 14.3 | 18.2 |
| Additional paid-in capital | 594 | 1761.2 |
| Retained earnings | 4,674 | 4,114 |
| Accumulated other comprehensive income (loss) | 4.1 | (17) |
| Treasury stock, at cost, .1 and 40.1 shares | -2.2 | -1199.5 |
| Total Ensco stockholders' equity | 5284.2 | 4676.9 |
| Noncontrolling interests | 7.3 | 6.7 |
| Total equity | 5291.5 | 4683.6 |
| Total liabilities and equity | 6455.2 | 5830.1 |
| Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
| In Millions, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
| Accounts Receivable | ||
| Allowance for doubtful accounts | 25.1 | 20.6 |
| Preferred Stock | ||
| Preferred stock, par value | $1 | $1 |
| Preferred stock, shares authorized | 20 | 20 |
| Preferred stock, shares issued | 0 | 0 |
| Common Stock | ||
| Common stock, par value | 0.1 | 0.1 |
| Common stock, shares authorized | 250 | 250 |
| Common stock, shares issued | 142.6 | 181.9 |
| Treasury Stock | ||
| Treasury stock, shares | 0.1 | 40.1 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
| Operating Activities | ||
| Net income | 574.3 | 855.3 |
| Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | ||
| Depreciation expense | 149.8 | 139.4 |
| Deferred income tax expense | 28.9 | 16.1 |
| Share-based compensation expense | 25.1 | 21.1 |
| Amortization expense | 23.5 | 24.6 |
| Loss (income) from discontinued operations, net | 16.4 | -25.1 |
| Loss on disposal of discontinued operations, net | 11.8 | 23.5 |
| Other | 2.9 | -2.2 |
| Changes in operating assets and liabilities: | ||
| Decrease (increase) in accounts receivable | 154.4 | -86.6 |
| Decrease (increase) in trading securities | 3.6 | -73.2 |
| Increase in other assets | (76) | -31.2 |
| Increase (decrease) in accounts payable and other liabilities | 23.5 | -127.9 |
| Net cash provided by operating activities of continuing operations | 938.2 | 733.8 |
| Investing Activities | ||
| Additions to property and equipment | -684.7 | -653.9 |
| Proceeds from disposal of discontinued operations | 4.9 | 0 |
| Proceeds from disposition of assets | 1.9 | 5.1 |
| Purchase of short-term investments | 0 | -38.4 |
| Net cash used in investing activities | -677.9 | -687.2 |
| Financing Activities | ||
| Cash dividends paid | -10.7 | -10.7 |
| Proceeds from exercise of stock options | 9 | 27.3 |
| Reduction of long-term borrowings | -8.6 | -10.5 |
| Repurchase of common stock | -6.3 | -259.5 |
| Other | -5.1 | 2.1 |
| Net cash used in financing activities | -21.7 | -251.3 |
| Effect of exchange rate changes on cash and cash equivalents | 0.3 | -7.6 |
| Net cash (used in) provided by operating activities of discontinued operations | -11.3 | 30.4 |
| Increase (decrease) in cash and cash equivalents | 227.6 | -181.9 |
| Cash and cash equivalents, beginning of period | 789.6 | 629.5 |
| Cash and cash equivalents, end of period | 1017.2 | 447.6 |
| Unaudited Condensed Consolidated Financial Statements | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Unaudited Condensed Consolidated Financial Statements [Abstract] | |
| Unaudited Condensed Consolidated Financial Statements | Note 1 - Unaudited Condensed Consolidated Financial Statements We prepared the accompanying condensed consolidated financial statements of ENSCO International Incorporated and subsidiaries (the Company, Ensco, we or us) in accordance with accounting principles generally accepted in the United States of America (GAAP), pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) included in the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial information included in this report is unaudited but, in our opinion, includes all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The December 31, 2008 condensed consolidated balance sheet data were derived from our 2008 audited consolidated financial statements, as updated in the Current Report on Form 8-K dated October 13, 2009, but do not include all disclosures required by GAAP. Certain previously reported amounts have been reclassified to conform to the current year presentation. The preparation of our condensed consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and disclosures of gain and loss contingencies as of the date of the financial statements. Actual results could differ from those estimates. The financial data for the three-month and nine-month periods ended September 30, 2009 and 2008 included herein have been subjected to a limited review by KPMG LLP, our independent registered public accounting firm. The accompanying independent registered public accounting firm's review report is not a report within the meaning of Sections 7 and 11 of the Securities Act of 1933 and the independent registered public accounting firm's liability under Section 11 does not extend to it. Results of operations for the three-month and nine-month periods ended September 30, 2009 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2009. It is recommended that these condensed consolidated financial statements be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2008 included in our Annual Report on Form 10-K dated February 26, 2009, as updated in the Current Report on Form 8-K dated October 13, 2009. |
| Noncontrolling Interests | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Noncontrolling Interests [Abstract] | |
| Noncontrolling Interests | Note 2 - Noncontrolling Interests On January 1, 2009, we adopted certain provisions of FASB ASC 810-10 (previously SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements). This standard clarifies that a noncontrolling interest should be reported as equity in the consolidated financial statements and requires net income attributable to both the parent and the noncontrolling interest to be disclosed separately on the face of the consolidated statement of income. These presentation and disclosure provisions require retrospective application to all prior periods presented. Noncontrolling interests were classified as equity on our condensed consolidated balance sheets as of September 30, 2009 and December 31, 2008, and net income attributable to noncontrolling interests was presented separately on our condensed consolidated statements of income for the three-month and nine-month periods ended September 30, 2009 and 2008. Local third parties hold a noncontrolling ownership interest in three of our international subsidiaries. No changes in the ownership interests of these subsidiaries occurred during the nine-month period ended September 30, 2009. The following table is a reconciliation of income from continuing operations attributable to Ensco during the three-month and nine-month periods ended September 30, 2009 and 2008 (in millions): Three Months Nine Months Ended September 30, Ended September 30, 2009 2008 2009 2008 Income from continuing operations $150.4 $296.8 $602.5 $853.7 Income from continuing operations attributable to noncontrolling interests (1.1 ) (1.4 ) (3.6 ) (4.3 ) Income from continuing operations attributable to Ensco $149.3 $295.4 $598.9 $849.4 Income (loss) from discontinued operations, net, for the three-month and nine-month periods ended September 30, 2009 and 2008 was attributable to Ensco. |
| Earnings Per Share | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | Note 3 - Earnings Per Share On January 1, 2009, we adopted certain provisions of FASB ASC 260-10-45 (previously FASB Staff Position EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities). This standard addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (EPS) under the two-class method. Non-vested share awards granted to our employees and non-employee directors contain nonforfeitable dividend rights and, therefore, are now considered participating securities. We have prepared our current period basic and diluted EPS computations and retrospectively revised our comparative prior period computations to exclude net income allocated to non-vested share awards. The following table is a reconciliation of net income attributable to Ensco common shares used in our basic and diluted EPS computations for the three-month and nine-month periods ended September 30, 2009 and 2008 (in millions): Three Months Nine Months Ended September 30, Ended September 30, 2009 2008 2009 2008 Net income attributable to Ensco $149.7 $282.3 $570.7 $851.0 Net income allocated to non-vested share awards (1.9 ) (3.5 ) (7.0 ) (8.9 ) Net income attributable to Ensco common shares $147.8 $278.8 $563.7 $842.1 The following table is a reconciliation of the weighted-average common shares used in our basic and diluted EPS computations for the three-month and nine-month periods ended September 30, 2009 and 2008 (in millions): Three Months Nine Months Ended September 30, Ended September 30, 2009 2008 2009 2008 Weighted-average common shares - basic 140.7 141.1 140.3 142.2 Potentially dilutive share options .0 .3 .1 .4 Weighted-average common shares - diluted 140.7 141.4 140.4 142.6 Antidilutive share options totaling 1.1 million and 361,000 were excluded from the computation of diluted EPS during the three-month periods ended September 30, 2009 and 2008, respectively. Antidilutive share options totaling 1.3 million and 546,000 were excluded from the computation of diluted EPS during the nine-month periods ended September 30, 2009 and 2008, respectively. |
| Derivative Financial Instruments | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Derivative Financial Instruments [Abstract] | |
| Derivative Financial Instruments | Note 4 - Derivative Financial Instruments On January 1, 2009, we adopted certain disclosure provisions of FASB ASC 815-10-50 (previously SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities). These provisions require enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under FASB ASC 815 (previously SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities) and its related interpretations and (c) how derivative instruments and related hedged items affect an entity's financial position, operating results and cash flows. We use derivative financial instruments (derivatives) to reduce our exposure to various market risks, primarily foreign currency risk. We maintain a foreign currency risk management strategy that utilizes derivatives to reduce our exposure to unanticipated fluctuations in earnings and cash flows caused by changes in foreign currency exchange rates. Although no interest rate related derivatives were outstanding as of September 30, 2009 and December 31, 2008, we occasionally employ an interest rate risk management strategy that utilizes derivatives to minimize or eliminate unanticipated fluctuations in earnings and cash flows arising from changes in, and volatility of, interest rates. We minimize our credit risk relating to our derivative counterparties by transacting with multiple, high-quality financial institutions, thereby limiting exposure to individual counterparties, and by monitoring the financial condition of our counterparties. We do not enter into derivatives for trading or other speculative purposes. All derivatives were recorded on our condensed consolidated balance sheets at fair value. Accounting for the gains and losses resulting from changes in the fair value of derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. As of September 30, 2009 and December 31, 2008, our condensed consolidated balance sheets included net foreign currency derivative assets of $12.5 million and net foreign currency derivative liabilities of $20.3 million, respectively. See Note 7 - Fair Value Measurements for additional information on the fair value measurement of our derivatives. Derivatives recorded at fair value in our condensed consolidated balance sheets as of September 30, 2009 and December 31, 2008 consisted of the following (in millions): Derivative Assets Derivative Liabilities September 30, December 31, September 30, December 31, 2009 2008 2009 2008 Derivatives Designated as Hedging Instruments Foreign currency forward contracts - current(1) $12.2 $.3 $3.2 $25.8 Foreign currency forward contracts - non-current(2) 3.3 5.1 -- .0 15.5 5.4 3.2 25.8 Derivatives not Designated as Hedging Instruments Foreign currency forward contracts - current(1) .2 .1 -- .0 .2 .1 -- .0 Total $15 |
| Stockholders' Equity | |
| 1/1/2009 - 9/30/2009
USD / shares | |
| Stockholders' Equity [Abstract] | |
| Stockholders' Equity | Note 5 - Stockholders' Equity In August 2009, under authorization from our Board of Directors, 40.2 million treasury shares with a historical cost totaling $1,203.7 million were retired. As of September 30, 2009 and December 31, 2008, our treasury stock balance totaled $2.2 million and $1,199.5 million, respectively, our additional paid-in capital balance totaled $594.0 million and $1,761.2 million, respectively, and our common stock balance totaled $14.3 million and $18.2 million, respectively. |
| Comprehensive Income | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | Note 6 - Comprehensive Income Accumulated other comprehensive income (loss) as of September 30, 2009 and December 31, 2008 was comprised of net gains and losses on derivative instruments, net of tax. The components of comprehensive income, net of tax, for the three-month and nine-month periods ended September 30, 2009 and 2008 were as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Net income $150.8 $283.7 $574.3 $855.3 Other comprehensive income: Net change in fair value of derivatives 7.8 (11.7 ) 6.6 (6.3 ) Reclassification of gains and losses on derivatives from other comprehensive (income) loss into net income (.6 ) .2 14.5 (4.0 ) Net other comprehensive income (loss) 7.2 (11.5 ) 21.1 (10.3 ) Comprehensive income 158.0 272.2 595.4 845.0 Comprehensive income attributable to noncontrolling interests (1.1 ) (1.4 ) (3.6 ) (4.3 ) Comprehensive income attributable to Ensco $156.9 $270.8 $591.8 $840.7 |
| Fair Value Measurements | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | Note 7 - Fair Value Measurements The following fair value hierarchy table categorizes information regarding our assets and liabilities measured at fair value on a recurring basis as of September 30, 2009 and December 31, 2008 (in millions): Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total As of September 30, 2009 Auction rate securities $-- $-- $60.9 $60.9 Supplemental executive retirement plan assets 17.6 -- -- 17.6 Derivative instruments, net -- 12.5 -- 12.5 Total financial assets $17.6 $12.5 $60.9 $91.0 As of December 31, 2008 Auction rate securities $-- $-- $64.2 $64.2 Supplemental executive retirement plan assets 12.7 -- -- 12.7 Total financial assets $12.7 $-- $64.2 $76.9 Derivative instruments, net $-- $20.3 $-- $20.3 Total financial liabilities $-- $20.3 $-- $20.3 Auction Rate Securities As of September 30, 2009 and December 31, 2008, we held long-term debt instruments with variable interest rates that periodically reset through an auction process (auction rate securities) totaling $68.7 million and $72.3 million (par value), respectively. Auction rate securities were classified as long-term investments on our condensed consolidated balance sheets. Our auction rate securities were originally acquired in January 2008 and have maturity dates ranging from 2025 to 2047. Our auction rate securities were measured at fair value on a recurring basis using significant Level 3 inputs as of September 30, 2009 and December 31, 2008. The following table summarizes the fair value measurements of our auction rate securities using significant Level 3 inputs, and changes therein, for the three-month and nine-month periods ended September 30, 2009 and 2008 (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Beginning Balance $61.6 $70.0 $64.2 $-- (Sales) purchases, net (1.0) (.1 ) (3.6) 73.2 Unrealized gains (losses)* .3 .3 .3 (3.0) Realized losses -- -- -- -- Transfers in and/or out of Level 3 -- -- -- -- Ending balance $60.9 $70.2 $60.9 $70.2 * Unrealized gains (losses) are included in other (expense), net, in the condensed consolidated statements of income. Before utilizing Level 3 inputs in our fair value measurements, we considered whether observable inputs were available. As a result of continued auction failures, quoted prices for our auction rate securities did not exist as of September 30, 2009. Accordingly, we concluded th |
| Discontinued Operations | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Discontinued Operations [Abstract] | |
| Discontinued Operations | Note 8 - Discontinued Operations ENSCO 69 From May 2007 to June 2009, ENSCO 69 was contracted to Petrosucre, a subsidiary of Petrleos de Venezuela S.A., the national oil company of Venezuela (PDVSA). PDVSA subsidiaries reportedly lack funds and generally have not been paying their contractors and service providers since the latter portions of 2008. In January 2009, we suspended drilling operations on ENSCO 69 after Petrosucre failed to satisfy its contractual obligations and meet commitments relative to the payment of past due invoices. Petrosucre then took over complete control of ENSCO 69 drilling operations utilizing Petrosucre employees and a portion of the Venezuelan rig crews we had utilized. When Petrosucre initially advised us that it temporarily was taking over operations on the rig, we placed our supervisory rig personnel on ENSCO 69 to observe Petrosucre's operations. On April 30, 2009, we submitted a notice of termination to Petrosucre for non-payment of past due invoices. The terms of the ENSCO 69 drilling contract provided for termination of the contract upon Petrosucre's failure to satisfy its contractual payment obligations during the 30-day period subsequent to our notice. On June 4, 2009, after Petrosucre's failure to satisfy its contractual payment obligations, failure to reach a mutually acceptable agreement with us and denial of our request to demobilize ENSCO 69 from Venezuela, Petrosucre advised that it would not return the rig and would continue to operate it without our consent. Petrosucre further advised that it would release ENSCO 69 after a six-month period, subject to a mutually agreed accord addressing the resolution of all remaining obligations under the ENSCO 69 drilling contract. On June 6, 2009, we terminated our contract with Petrosucre and removed all remaining Ensco employees from the rig. On July 17, 2009, we received an $11.5 million payment from Petrosucre, which represented less than 25% of the $47.9 million contractually due to us as of June 30, 2009. Due to Petrosucre's longstanding failure to satisfy its contractual obligations and meet payment commitments, and in consideration of the Venezuelan government's recent nationalization of assets owned by international oil and gas companies and oilfield service companies, we believe it is remote that ENSCO 69 will be returned to us by Petrosucre and operated again by Ensco. Therefore, we recorded the disposal of ENSCO 69 during the quarter ended June 30, 2009. ENSCO 69 results of operations have been reclassified as discontinued operations in our condensed consolidated statements of income for the three-month and nine-month periods ended September 30, 2009 and 2008. At the time of disposal, ENSCO 69 had a net book value of $17.3 million and inventory and other assets totaling $800,000. In connection with the disposal of ENSCO 69 during the quarter ended June 30, 2009, we recognized a pre-tax loss of $18.1 million, which was classified as loss on disposal of discontinued operations, net, in our condensed consolidated statements of income for the nine-month period ended September 30, 2009. Loss on discontinued operations, net, for the nine-m |
| Contingencies | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Contingencies [Abstract] | |
| Contingencies | Note 9 - Contingencies FCPA Internal Investigation Following disclosures by other offshore service companies announcing internal investigations involving the legality of amounts paid to and by customs brokers in connection with temporary importation of rigs and vessels into Nigeria, the Audit Committee of our Board of Directors and management commenced an internal investigation in July 2007. The investigation initially focused on our payments to customs brokers relating to the temporary importation of ENSCO 100, our only rig that operated offshore Nigeria during the pertinent period. As is customary for companies operating offshore Nigeria, we had engaged independent customs brokers to process customs clearance of routine shipments of equipment, materials and supplies and to process the ENSCO 100 temporary importation permits, extensions and renewals. One or more of the customs brokers that our subsidiary in Nigeria used to obtain the ENSCO 100 temporary import permits, extensions and renewals also provided this service to other offshore service companies that have undertaken Foreign Corrupt Practices Act (FCPA) compliance internal investigations. The principal purpose of our investigation was to determine whether any of the payments made to or by our customs brokers were inappropriate under the anti-bribery provisions of the FCPA or whether any violations of the recordkeeping or internal accounting control provisions of the FCPA occurred. Our Audit Committee engaged a Washington, D.C. law firm with significant experience in investigating and advising upon FCPA matters to assist in the internal investigation. Following notification to the Audit Committee and to KPMG LLP, our independent registered public accounting firm, in consultation with the Audit Committee's external legal counsel, we voluntarily notified the United States Department of Justice and SEC that we had commenced an internal investigation. We expressed our intention to cooperate with both agencies, comply with their directives and fully disclose the results of the investigation. The internal investigation process has involved extensive reviews of documents and records, as well as production to the authorities, and interviews of relevant personnel. In addition to the temporary importation of ENSCO 100, the investigation has examined our customs clearance of routine shipments and immigration activities in Nigeria. Our internal investigation has essentially been concluded. Meetings to review the results of the investigation with the authorities were held on February 24, 2009 and September 14, 2009. We expect to discuss a possible negotiated disposition with the authorities in the near-term. Although we believe the U.S. authorities will take into account our voluntary disclosure, our cooperation with the agencies and the remediation and compliance enhancement activities that are underway, we are unable to predict the ultimate disposition of this matter, whether we will be charged with violation of the anti-bribery, recordkeeping or internal accounting control provisions of the FCPA or whether the scope of the investigation will be extended to other issues in Nige |
| Segment Information | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Segment Information [Abstract] | |
| Segment Information | Note 10 - Segment Information Our business consists of four operating segments: (1) Deepwater, (2) Asia Pacific, (3) Europe and Africa and (4) North and South America. Each of our four operating segments provides one service, contract drilling. Segment information for the three-month and nine-month periods ended September 30, 2009 and 2008 is presented below. General and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income and were included in Reconciling Items. Assets not allocated to our operating segments consisted primarily of cash and cash equivalents and goodwill and were also included in Reconciling Items. Three Months Ended September 30, 2009 (in millions) North and Operating Asia Europe South Segments Reconciling Consolidated Deepwater Pacific and Africa America Total Items Total Revenues $62.5 $161.6 $104.4 $96.9 $425.4 $-- $425.4 Operating expenses Contract drilling (exclusive of depreciation) 34.7 61.1 46.5 41.0 183.3 -- 183.3 Depreciation 6.5 22.3 11.1 13.1 53.0 .3 53.3 General and administrative -- -- -- -- -- 13.6 13.6 Operating income (loss) $21.3 $78.2 $46.8 $42.8 $189.1 $(13.9) $175.2 Total assets $2,225.6 $1,277.5 $785.5 $821.9 $5,110.5 $1,344.7 $6,455.2 Three Months Ended September 30, 2008 (in millions) North and Operating Asia Europe South Segments Reconciling Consolidated Deepwater Pacific and Africa America Total Items Total Revenues $27.1 $260.8 $209.3 $122.3 $619.5 $-- $619.5 Operating expenses Contract drilling (exclusive of depreciation) 8.3 75.3 62.8 38.8 185.2 -- 185.2 Depreciation 2.3 21.4 10.8 12.0 46.5 .5 47.0 General and administrative -- -- -- -- -- 15.2 15.2 Operating income (loss) $16.5 $164.1 $135.7 $71.5 $387.8 $(15.7) $372.1 Total assets $1,602.0 $1,310.7 $747.2 $801.3 $4,461.2 $996.0 $5,457.2 Nine Months Ended September 30, 2009 (in millions) North and Operating Asia Europe South Segments Reconciling Consolidated Deepwater Pacific and Africa America Total Items Total Revenues $130.2 $544.0 $476.8 $295.3 $1,446.3 $-- $1,446.3 Operating expenses Contract drilling (exclusive of depreciation) 63.2 188.4 152.6 120.6 524.8 -- 524.8 Depreciation 12.5 66.2 33.0 37.2 148.9 .9 149.8 General and administrative -- -- -- -- -- 41.6 41.6 Operating income (loss) $54.5 $289.4 $291.2 $137.5 $772.6 $(42.5) $730.1 |
| Subsequent Events | |
| 9 Months Ended
Sep. 30, 2009 USD / shares | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Note 11 - Subsequent Events During the second quarter of 2009, we adopted FASB ASC 855 (previously SFAS No. 165, Subsequent Events) which establishes general standards regarding the accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Adoption of this standard did not result in significant changes in the subsequent events that we are required to recognize or disclosure in our financial statements. We account for and disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued. We evaluated subsequent events through October 22, 2009, the date these condensed consolidated financial statements were filed with the SEC. |
