Guarantee Of Registered Securities | Guarantee of Registered Securities Ensco plc provides for the full and unconditional guarantee of Pride International, Inc.'s, a wholly-owned subsidiary of Ensco plc, 8.5% unsecured senior notes due 2019 , 6.875% unsecured senior notes due 2020 and 7.875% unsecured senior notes due 2040 , which had an aggregate outstanding principal balance of $1.5 billion as of June 30, 2016 . The Ensco plc guarantee provides for the unconditional and irrevocable guarantee of the prompt payment, when due, of any amount owed to the note holders. Ensco plc is also a full and unconditional guarantor of the 7.2% debentures due 2027 issued by ENSCO International Incorporated, a wholly-owned subsidiary of Ensco plc, during 1997, which had an aggregate outstanding principal balance of $150.0 million as of June 30, 2016 . All guarantees are unsecured obligations of Ensco plc ranking equal in right of payment with all of its existing and future unsecured and unsubordinated indebtedness. The following tables present the unaudited condensed consolidating statements of operations for the three-month and six-month periods ended June 30, 2016 and 2015 ; the unaudited condensed consolidating statements of comprehensive income for the three-month and six-month periods ended June 30, 2016 and 2015 ; the condensed consolidating balance sheets as of June 30, 2016 (unaudited) and December 31, 2015 ; and the unaudited condensed consolidating statements of cash flows for the six-month periods ended June 30, 2016 and 2015 , in accordance with Rule 3-10 of Regulation S-X. ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING REVENUES $ 7.6 $ 36.5 $ — $ 937.4 $ (71.9 ) $ 909.6 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 6.7 36.4 — 379.0 (71.9 ) 350.2 Depreciation — 4.4 — 108.0 — 112.4 General and administrative 10.5 — — 16.9 — 27.4 OPERATING (LOSS) INCOME (9.6 ) (4.3 ) — 433.5 — 419.6 OTHER INCOME (EXPENSE), NET 175.8 (8.3 ) (18.8 ) 1.3 59.9 209.9 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 166.2 (12.6 ) (18.8 ) 434.8 59.9 629.5 INCOME TAX PROVISION — (15.6 ) — 52.3 — 36.7 DISCONTINUED OPERATIONS, NET — — — (.2 ) — (.2 ) EQUITY EARNINGS IN AFFILIATES, NET OF TAX 424.4 20.0 10.2 — (454.6 ) — NET INCOME (LOSS) 590.6 23.0 (8.6 ) 382.3 (394.7 ) 592.6 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.0 ) — (2.0 ) NET INCOME (LOSS)ATTRIBUTABLE TO ENSCO $ 590.6 $ 23.0 $ (8.6 ) $ 380.3 $ (394.7 ) $ 590.6 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2015 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING REVENUES $ 8.7 $ 34.5 $ — $ 1,086.6 $ (70.8 ) $ 1,059.0 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 6.3 34.5 — 532.6 (70.8 ) 502.6 Depreciation — 2.4 — 138.1 — 140.5 General and administrative 13.7 — — 16.0 — 29.7 OPERATING (LOSS) INCOME (11.3 ) (2.4 ) — 399.9 — 386.2 OTHER (EXPENSE) INCOME, NET (36.3 ) 2.4 (15.2 ) (6.3 ) — (55.4 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (47.6 ) — (15.2 ) 393.6 — 330.8 INCOME TAX PROVISION — 14.1 — 43.9 — 58.0 DISCONTINUED OPERATIONS, NET — — — (10.1 ) — (10.1 ) EQUITY EARNINGS IN AFFILIATES, NET OF TAX 307.9 47.5 71.4 — (426.8 ) — NET INCOME 260.3 33.4 56.2 339.6 (426.8 ) 262.7 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.4 ) — (2.4 ) NET INCOME ATTRIBUTABLE TO ENSCO $ 260.3 $ 33.4 $ 56.2 $ 337.2 $ (426.8 ) $ 260.3 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING REVENUES $ 14.8 $ 72.1 $ — $ 1,780.7 $ (144.0 ) $ 1,723.6 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 13.9 72.1 — 771.9 (144.0 ) 713.9 Depreciation — 8.7 — 217.0 — 225.7 General and administrative 16.7 .1 — 34.0 — 50.8 OPERATING (LOSS) INCOME (15.8 ) (8.8 ) — 757.8 — 733.2 OTHER INCOME (EXPENSE), NET 139.0 (6.7 ) (37.9 ) (9.0 ) 59.9 145.3 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 123.2 (15.5 ) (37.9 ) 748.8 59.9 878.5 INCOME TAX PROVISION — 15.4 — 92.7 — 108.1 DISCONTINUED OPERATIONS, NET — — — (1.1 ) — (1.1 ) EQUITY EARNINGS IN AFFILIATES, NET OF TAX 642.7 53.5 63.8 — (760.0 ) — NET INCOME 765.9 22.6 25.9 655.0 (700.1 ) 769.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.4 ) — (3.4 ) NET INCOME ATTRIBUTABLE TO ENSCO $ 765.9 $ 22.6 $ 25.9 $ 651.6 $ (700.1 ) $ 765.9 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2015 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING REVENUES $ 17.4 $ 69.3 $ — $ 2,278.2 $ (142.0 ) $ 2,222.9 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 13.1 69.3 — 1,080.5 (142.0 ) 1,020.9 Depreciation .1 4.9 — 272.6 — 277.6 General and administrative 27.0 .1 — 32.7 — 59.8 OPERATING (LOSS) INCOME (22.8 ) (5.0 ) — 892.4 — 864.6 OTHER (EXPENSE) INCOME, NET (96.2 ) (14.4 ) (31.1 ) 13.7 — (128.0 ) (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (119.0 ) (19.4 ) (31.1 ) 906.1 — 736.6 INCOME TAX PROVISION — 27.9 — 107.8 — 135.7 DISCONTINUED OPERATIONS, NET — — — (10.3 ) — (10.3 ) EQUITY EARNINGS IN AFFILIATES, NET OF TAX 704.0 92.7 135.3 — (932.0 ) — NET INCOME 585.0 45.4 104.2 788.0 (932.0 ) 590.6 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (5.6 ) — (5.6 ) NET INCOME ATTRIBUTABLE TO ENSCO $ 585.0 $ 45.4 $ 104.2 $ 782.4 $ (932.0 ) $ 585.0 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total NET INCOME (LOSS) $ 590.6 $ 23.0 $ (8.6 ) $ 382.3 $ (394.7 ) $ 592.6 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — (4.1 ) — — — (4.1 ) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 2.0 — — — 2.0 Other — — — .1 — .1 NET OTHER COMPREHENSIVE (LOSS) INCOME — (2.1 ) — .1 — (2.0 ) COMPREHENSIVE INCOME (LOSS) 590.6 20.9 (8.6 ) 382.4 (394.7 ) 590.6 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.0 ) — (2.0 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ENSCO $ 590.6 $ 20.9 $ (8.6 ) $ 380.4 $ (394.7 ) $ 588.6 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2015 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total NET INCOME $ 260.3 $ 33.4 $ 56.2 $ 339.6 $ (426.8 ) $ 262.7 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — 8.7 — — — 8.7 Reclassification of net gains on derivative instruments from other comprehensive income into net income — 5.1 — — — 5.1 Other — — — (1.3 ) — (1.3 ) NET OTHER COMPREHENSIVE INCOME (LOSS) — 13.8 — (1.3 ) — 12.5 COMPREHENSIVE INCOME 260.3 47.2 56.2 338.3 (426.8 ) 275.2 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.4 ) — (2.4 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO $ 260.3 $ 47.2 $ 56.2 $ 335.9 $ (426.8 ) $ 272.8 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total NET INCOME $ 765.9 $ 22.6 $ 25.9 $ 655.0 $ (700.1 ) $ 769.3 OTHER COMPREHENSIVE INCOME, NET Net change in derivative fair value — (.6 ) — — — (.6 ) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 7.9 — — — 7.9 Other — — — — — — NET OTHER COMPREHENSIVE INCOME — 7.3 — — — 7.3 COMPREHENSIVE INCOME 765.9 29.9 25.9 655.0 (700.1 ) 776.6 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.4 ) — (3.4 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO $ 765.9 $ 29.9 $ 25.9 $ 651.6 $ (700.1 ) $ 773.2 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2015 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total NET INCOME $ 585.0 $ 45.4 $ 104.2 $ 788.0 $ (932.0 ) $ 590.6 OTHER COMPREHENSIVE INCOME, NET Net change in derivative fair value — (8.7 ) — — — (8.7 ) Reclassification of net gains on derivative instruments from other comprehensive income into net income — 10.1 — — — 10.1 Other — — — 1.3 — 1.3 NET OTHER COMPREHENSIVE INCOME — 1.4 — 1.3 — 2.7 COMPREHENSIVE INCOME 585.0 46.8 104.2 789.3 (932.0 ) 593.3 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (5.6 ) — (5.6 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO $ 585.0 $ 46.8 $ 104.2 $ 783.7 $ (932.0 ) $ 587.7 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 712.8 $ — $ 26.1 $ 51.4 $ — $ 790.3 Short-term investments 1,010.0 — — — — 1,010.0 Accounts receivable, net 5.2 — — 402.8 — 408.0 Accounts receivable from affiliates 245.7 637.7 — 565.8 (1,449.2 ) — Other .1 10.1 — 336.2 — 346.4 Total current assets 1,973.8 647.8 26.1 1,356.2 (1,449.2 ) 2,554.7 PROPERTY AND EQUIPMENT, AT COST 1.8 118.8 — 12,756.6 — 12,877.2 Less accumulated depreciation 1.8 55.7 — 1,798.5 — 1,856.0 Property and equipment, net — 63.1 — 10,958.1 — 11,021.2 DUE FROM AFFILIATES 1,428.5 5,069.7 2,043.1 6,731.5 (15,272.8 ) — INVESTMENTS IN AFFILIATES 8,412.1 1,717.2 — — (10,129.3 ) — OTHER ASSETS, NET — 40.0 — 290.5 (141.4 ) 189.1 $ 11,814.4 $ 7,537.8 $ 2,069.2 $ 19,336.3 $ (26,992.7 ) $ 13,765.0 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 48.0 $ 32.1 $ 30.9 $ 499.8 $ — $ 610.8 Accounts payable to affiliates 46.4 591.2 3.8 807.8 (1,449.2 ) $ — Total current liabilities 94.4 623.3 34.7 1,307.6 (1,449.2 ) 610.8 DUE TO AFFILIATES 791.1 5,391.6 2,056.0 7,034.1 (15,272.8 ) — LONG-TERM DEBT 3,041.8 149.1 1,714.7 — — 4,905.6 INVESTMENTS IN AFFILIATES — — 1,215.2 (1,215.2 ) — OTHER LIABILITIES — 150.2 — 352.9 (141.4 ) 361.7 ENSCO SHAREHOLDERS' EQUITY 7,887.1 1,223.6 (2,951.4 ) 10,634.7 (8,914.1 ) 7,879.9 NONCONTROLLING INTERESTS — — — 7.0 — 7.0 Total equity 7,887.1 1,223.6 (2,951.4 ) 10,641.7 (8,914.1 ) 7,886.9 $ 11,814.4 $ 7,537.8 $ 2,069.2 $ 19,336.3 $ (26,992.7 ) $ 13,765.0 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2015 (in millions) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-Guarantor Subsidiaries of Ensco Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 94.0 $ — $ 2.0 $ 25.3 $ — $ 121.3 Short-term investments 1,180.0 — — — — $ 1,180.0 Accounts receivable, net 1.2 — — 580.8 — 582.0 Accounts receivable from affiliates 808.7 237.3 — 148.1 (1,194.1 ) — Other .2 229.3 — 172.3 — 401.8 Total current assets 2,084.1 466.6 2.0 926.5 (1,194.1 ) 2,285.1 PROPERTY AND EQUIPMENT, AT COST 1.8 117.5 — 12,600.1 — 12,719.4 Less accumulated depreciation 1.8 47.7 — 1,582.1 — 1,631.6 Property and equipment, net — 69.8 — 11,018.0 — 11,087.8 DUE FROM AFFILIATES 1,303.7 5,270.0 2,035.5 6,869.9 (15,479.1 ) — INVESTMENTS IN AFFILIATES 7,743.8 — — — (7,743.8 ) — OTHER ASSETS, NET — 43.1 — 324.9 (130.4 ) 237.6 $ 11,131.6 $ 5,849.5 $ 2,037.5 $ 19,139.3 $ (24,547.4 ) $ 13,610.5 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 60.7 $ 69.6 $ 34.8 $ 610.4 $ — $ 775.5 Accounts payable to affiliates 19.4 176.3 — 998.4 (1,194.1 ) — Total current liabilities 80.1 245.9 34.8 1,608.8 (1,194.1 ) 775.5 DUE TO AFFILIATES 751.9 4,354.3 1,763.7 8,609.2 (15,479.1 ) — LONG-TERM DEBT 3,782.4 149.0 1,937.2 — — 5,868.6 INVESTMENTS IN AFFILIAITES — 442.0 1,319.3 — (1,761.3 ) — OTHER LIABILITIES — 135.7 — 443.9 (130.4 ) 449.2 ENSCO SHAREHOLDERS' EQUITY 6,517.2 522.6 (3,017.5 ) 8,473.1 (5,982.5 ) 6,512.9 NONCONTROLLING INTERESTS — — — 4.3 — 4.3 Total equity 6,517.2 522.6 (3,017.5 ) 8,477.4 (5,982.5 ) 6,517.2 $ 11,131.6 $ 5,849.5 $ 2,037.5 $ 19,139.3 $ (24,547.4 ) $ 13,610.5 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2016 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING ACTIVITIES Net cash (used in) provided by operating activities of continuing operations $ (83.4 ) $ 130.8 $ (60.4 ) $ 813.2 $ — $ 800.2 INVESTING ACTIVITIES Maturities of short-term investments 1,032.0 — — — — 1,032.0 Purchases of short-term investments (862.0 ) — — — — (862.0 ) Additions to property and equipment — — — (209.4 ) — (209.4 ) Purchase of affiliate debt (142.0 ) — — — 142.0 — Other — — — 7.6 — 7.6 Net cash provided by (used in) investing activities of continuing operations 28.0 — — (201.8 ) 142.0 (31.8 ) FINANCING ACTIVITIES Reduction of long-term borrowings (542.8 ) — — — (142.0 ) (684.8 ) Proceeds from equity issuance 585.5 — — — — 585.5 Cash dividends paid (5.5 ) — — — — (5.5 ) Advances from (to) affiliates 638.9 (130.8 ) 84.5 (592.6 ) — — Other (1.9 ) — — — — (1.9 ) Net cash provided by (used in) financing activities 674.2 (130.8 ) 84.5 (592.6 ) (142.0 ) (106.7 ) DISCONTINUED OPERATIONS Operating activities — — — 1.4 — 1.4 Investing activities — — — 6.3 — 6.3 Net cash used in discontinued operations — — — 7.7 — 7.7 Effect of exchange rate changes on cash and cash equivalents — — — (.4 ) — (.4 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 618.8 — 24.1 26.1 — 669.0 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 94.0 — 2.0 25.3 — 121.3 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 712.8 $ — $ 26.1 $ 51.4 $ — $ 790.3 ENSCO PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2015 (in millions) (Unaudited) Ensco plc ENSCO International Incorporated Pride International, Inc. Other Non-guarantor Subsidiaries of Ensco Consolidating Adjustments Total OPERATING ACTIVITIES Net cash (used in) provided by operating activities of continuing operations $ (66.2 ) $ (19.7 ) $ (49.9 ) $ 1,026.8 $ — $ 891.0 INVESTING ACTIVITIES Additions to property and equipment — (5.1 ) — (908.8 ) — (913.9 ) Maturities of short-term investments 712.0 — — 45.3 757.3 Purchases of short-term investments (650.0 ) — — — — (650.0 ) Other — — — 1.1 — 1.1 Net cash provided by (used in) investing activities of continuing operations 62 (5.1 ) — (862.4 ) — (805.5 ) FINANCING ACTIVITIES Proceeds from issuance of senior notes 1,078.7 — — — — 1,078.7 Reduction of long-term borrowings (998.3 ) — — (59.7 ) — (1,058.0 ) Cash dividends paid (70.5 ) — — — — (70.5 ) Premium paid on redemption of debt (27.2 ) — — (3.1 ) — (30.3 ) Debt financing costs (10.5 ) — — — — (10.5 ) Advances from (to) affiliates 88.2 24.8 63.5 (176.5 ) — — Other (9.0 ) — — 2.2 — (6.8 ) Net cash provided by (used in) financing activities 51.4 24.8 63.5 (237.1 ) — (97.4 ) DISCONTINUED OPERATIONS Operating activities — — — (4.2 ) — (4.2 ) Investing activities — — — (0.6 ) — (0.6 ) Net cash used in discontinued operations — — — (4.8 ) — (4.8 ) Effect of exchange rate changes on cash and cash equivalents — — — .2 — .2 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 47.2 — 13.6 (77.3 ) — (16.5 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 287.4 — 90.8 286.6 — 664.8 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 334.6 $ — $ 104.4 $ 209.3 $ — $ 648.3 |