Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | X0 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Entity File Number | 1-8097 | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Ensco Rowan plc | |
Entity Central Index Key | 0000314808 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Shares, Shares Outstanding | 197,872,156 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Address, Address Line One | 6 Chesterfield Gardens | |
Entity Address, City or Town | London, | |
City Area Code | 44 (0) 20 | |
Local Phone Number | 7659 4660 | |
Entity Address, State or Province | GB | |
Entity Tax Identification Number | 98-0635229 | |
Entity Address, Postal Zip Code | W1J 5BQ | |
Entity Interactive Data Current | Yes | |
Class A ordinary shares, U.S. $0.40 par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A ordinary shares, U.S. $0.40 par value | |
Trading Symbol | VAL | |
Security Exchange Name | NYSE | |
4.70% Senior Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.70% Senior Notes due 2021 | |
Trading Symbol | VAL21 | |
Security Exchange Name | NYSE | |
4.50% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.50% Senior Notes due 2024 | |
Trading Symbol | VAL24 | |
Security Exchange Name | NYSE | |
8.00% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.00% Senior Notes due 2024 | |
Trading Symbol | VAL24A | |
Security Exchange Name | NYSE | |
5.20% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.20% Senior Notes due 2025 | |
Trading Symbol | VAL25A | |
Security Exchange Name | NYSE | |
7.75% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.75% Senior Notes due 2026 | |
Trading Symbol | VAL26 | |
Security Exchange Name | NYSE | |
5.75% Senior notes due 2044 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.75% Senior Notes due 2044 | |
Trading Symbol | VAL44 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 583.9 | $ 458.5 | $ 989.8 | $ 875.5 |
OPERATING EXPENSES | ||||
Contract drilling (exclusive of depreciation) | 500.3 | 344.3 | 832.9 | 669.5 |
Asset Impairment Charges | 2.5 | 0 | 2.5 | 0 |
Depreciation expense | 157.9 | 120.7 | 282.9 | 235.9 |
General and administrative | 81.2 | 26.1 | 110.8 | 54 |
Total operating expenses | 741.9 | 491.1 | 1,229.1 | 959.4 |
Income (Loss) from Equity Method Investments | (0.6) | 0 | (0.6) | 0 |
OPERATING LOSS | (157.4) | (32.6) | (238.7) | (83.9) |
OTHER INCOME (EXPENSE) | ||||
Interest income | 11.9 | 3.9 | 15.4 | 6.9 |
Interest expense, net | (118.3) | (75.7) | (199.3) | (141.3) |
Other, net | 703.7 | (13) | 706 | (21.1) |
Other income (expense), net | 597.3 | (84.8) | 522.1 | (155.5) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 439.9 | (117.4) | 283.4 | (239.4) |
PROVISION FOR INCOME TAXES | ||||
Current income tax expense | 21.2 | 20.1 | 46.8 | 27.2 |
Deferred income tax expense | 11.4 | 4.6 | 17.3 | 15.9 |
Total provision for income taxes | 32.6 | 24.7 | 64.1 | 43.1 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 407.3 | (142.1) | 219.3 | (282.5) |
LOSS FROM DISCONTINUED OPERATIONS, NET | 0 | (8) | 0 | (8.1) |
NET INCOME (LOSS) | 407.3 | (150.1) | 219.3 | (290.6) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ 405.5 | $ (151) | $ 215.1 | $ (291.1) |
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED | ||||
Continuing operations (in dollars per share) | $ 2.09 | $ (1.31) | $ 1.40 | $ (2.61) |
Discontinued operations (in dollars per share) | 0 | (0.08) | 0 | (0.08) |
(Loss) earnings per share - basic and diluted (in dollars per share) | $ 2.09 | $ (1.39) | $ 1.40 | $ (2.69) |
WEIGHTED-AVERAGE SHARES OUTSTANDING | ||||
Basic and Diluted (in shares) | 188.6 | 108.5 | 148.9 | 108.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 407.3 | $ (150.1) | $ 219.3 | $ (290.6) |
OTHER COMPREHENSIVE INCOME (LOSS), NET | ||||
Net change in derivative fair value | (1.6) | (7.6) | (1.6) | (5.7) |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income (loss) into net income (loss) | 1.8 | (0.7) | 3.4 | (2.9) |
Other | 0 | (0.2) | (0.1) | (0.3) |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0.2 | (8.5) | 1.7 | (8.9) |
COMPREHENSIVE INCOME (LOSS) | 407.5 | (158.6) | 221 | (299.5) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ 405.7 | $ (159.5) | $ 216.8 | $ (300) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 959.1 | $ 275.1 |
Short-term investments | 135 | 329 |
Accounts receivable, net | 628.7 | 344.7 |
Other current assets | 499.7 | 360.9 |
Total current assets | 2,222.5 | 1,309.7 |
PROPERTY AND EQUIPMENT, AT COST | 18,472.8 | 15,517 |
Less accumulated depreciation | 3,017.1 | 2,900.8 |
Property and equipment, net | 15,455.7 | 12,616.2 |
Due from Joint Ventures, Noncurrent | 453.1 | 0 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 139.4 | 0 |
OTHER ASSETS | 169.4 | 97.8 |
TOTAL ASSETS | 18,440.1 | 14,023.7 |
CURRENT LIABILITIES | ||
Accounts payable - trade | 335.2 | 210.5 |
Accrued liabilities and other | 438.3 | 318 |
Long-term Debt, Current Maturities | 1,125.3 | 0 |
Total current liabilities | 1,898.8 | 528.5 |
LONG-TERM DEBT | 6,020.1 | 5,010.4 |
OTHER LIABILITIES | 799 | 396 |
COMMITMENTS AND CONTINGENCIES | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Additional paid-in capital | 8,608.4 | 7,225 |
Retained earnings | 1,084.8 | 874.2 |
Accumulated other comprehensive income | 19.9 | 18.2 |
Treasury shares, at cost | (75) | (72.2) |
Total Valaris shareholders' equity | 9,720.6 | 8,091.4 |
NONCONTROLLING INTERESTS | 1.6 | (2.6) |
Total equity | 9,722.2 | 8,088.8 |
Total liabilities and shareholders' equity | 18,440.1 | 14,023.7 |
Class A ordinary shares, U.S. | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Common shares, value | 82.4 | 46.1 |
Common Class B, Par Value In GBP [Member] | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Common shares, value | $ 0.1 | $ 0.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) | Jun. 30, 2019£ / sharesshares | Jun. 30, 2019$ / sharesshares | Dec. 31, 2018£ / sharesshares | Dec. 31, 2018$ / sharesshares |
Treasury shares, shares held (in shares) | 8,100,000 | 8,100,000 | 5,900,000 | 5,900,000 |
Class A ordinary shares, U.S. | ||||
Common stock, par value per share (in dollars per share or pounds sterling per share) | $ / shares | $ 0.40 | $ 0.40 | ||
Common shares, shares issued (in shares) | 205,800,000 | 205,800,000 | 115,200,000 | 115,200,000 |
Common Class B, Par Value In GBP [Member] | ||||
Common stock, par value per share (in dollars per share or pounds sterling per share) | £ / shares | £ 1 | £ 1 | ||
Common shares, shares issued (in shares) | 50,000 | 50,000 | 50,000 | 50,000 |
Common shares, shares authorized (in shares) | 50,000 | 50,000 | 50,000 | 50,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 219.3 | $ (290.6) |
Adjustments to reconcile net income (loss) to net cash used in operating activities of continuing operations: | ||
Gain on bargain purchase | (712.8) | (8.3) |
Depreciation expense | 282.9 | 235.9 |
Share-based compensation expense | 19.2 | 14.8 |
Amortization, net | (17.3) | (24.4) |
Deferred income tax expense | 17.3 | 15.9 |
Payment for Pension Benefits | (4) | 0 |
Asset Impairment Charges | 2.5 | 0 |
Income (Loss) from Equity Method Investments | (0.6) | 0 |
Loss on debt extinguishment | 0 | 19 |
Loss from discontinued operations, net | 0 | 8.1 |
Other | 4.9 | (2.1) |
Changes in operating assets and liabilities | (104.8) | 13.7 |
Net cash used in operating activities of continuing operations | (293.4) | (18) |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 931.9 | 0 |
Maturities of short-term investments | 339 | 599 |
Purchases of short-term investments | (145) | (414) |
Additions to property and equipment | (134.8) | (331.9) |
Other | 4.5 | 2.9 |
Net cash provided by (used in) investing activities of continuing operations | 995.6 | (144) |
FINANCING ACTIVITIES | ||
Payments for Other Fees | (8.7) | 0 |
Cash dividends paid | (4.5) | (9) |
Proceeds from Issuance of Senior Long-term Debt | 0 | 1,000 |
Reduction of long-term borrowings | 0 | (771.2) |
Debt issuance costs | 0 | (17) |
Payments for Repurchase of Common Stock | (4.2) | (2) |
Other | (0.5) | (0.5) |
Net cash provided by (used in) financing activities | (17.9) | 200.3 |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.7) |
INCREASE IN CASH AND CASH EQUIVALENTS | 684 | 40.1 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 275.1 | 445.4 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 959.1 | $ 485.5 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Unaudited Condensed Consolidated Financial Statements [Abstract] | |
Unaudited Condensed Consolidated Financial Statements | Unaudited Condensed Consolidated Financial Statements On April 11, 2019 , we completed our combination with Rowan Companies Limited (formerly named Rowan Companies plc) ("Rowan") and effected a four-to-one share consolidation (being a reverse stock split under English law or the "Reverse Stock Split") and changed our name to Ensco Rowan plc. On July 30, 2019, we changed our name to Valaris plc. All share and per-share amounts in these financial statements have been retrospectively adjusted to reflect the Reverse Stock Split. We prepared the accompanying condensed consolidated financial statements of Valaris plc and subsidiaries (the "Company," "Valaris," "our," "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, 2018 condensed consolidated balance sheet data was derived from our 2018 audited consolidated financial statements, but does not include all disclosures required by GAAP. The preparation of our condensed consolidated financial statements requires us 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 quarters ended June 30, 2019 and 2018 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, and the independent registered public accounting firm's liability under Section 11 does not extend to it. Results of operations for the quarter ended June 30, 2019 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2019 . We recommend these condensed consolidated financial statements be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on February 28, 2019 . New Accounting Pronouncements Recently adopted accounting standards Derivatives and Hedging - In August 2017, the FASB issued Update 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("Update 2017-12"), which makes more hedging strategies eligible for hedge accounting, amends presentation and disclosure requirements and changes how companies assess effectiveness, including the elimination of separate measurement and recognition of ineffectiveness on designated hedging instruments. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We adopted Updated 2017-12 effective January 1, 2019. As a result, beginning on the effective date, we will no longer separately measure and recognize ineffectiveness on our designated cash flow hedges. Update 2017-02 requires a modified retrospective adoption approach whereby amounts previously recorded to earnings for hedge ineffectiveness on hedging relationships that exist as of the adoption date are recorded as a cumulative effect adjustment to opening retained earnings. As of our adoption date, we had no amounts previously recorded for ineffectiveness for hedging relationships that existed as of our adoption date and therefore no cumulative effect adjustment to retained earnings was recorded. Leases - During 2016, the FASB issued Update 2016-02, Leases (Topic 842) ("Update 2016-02"), which requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key qualitative and quantitative information about the entity's leasing arrangements. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. During our evaluation of Update 2016-02, we concluded that our drilling contracts contain a lease component. In July 2018, the FASB issued Accounting Standard Update 2018-11, Leases (Topic 842), Targeted Improvements, which (1) provided for a new transition method whereby entities could elect to adopt the Update using a prospective with cumulative catch-up approach (the "effective date method") and (2) provided lessors with a practical expedient, by class of underlying asset, to not separate lease and non-lease components and account for the combined component under Topic 606 when the non-lease component is the predominant element of the combined component. The lessor practical expedient is limited to circumstances in which the lease, if accounted for separately, would be classified as an operating lease under Topic 842. We adopted ASU 2016-02, effective January 1, 2019, using the effective date method. With respect to our drilling contracts, which contain a lease component, we elected to apply the practical expedient to not separate the lease and non-lease components and account for the combined component under Topic 606. With respect to all of our drilling contracts that existed on the adoption date, we concluded that the criteria to elect the lessor practical expedient had been met. As a result, we will continue to recognize the revenue associated with our drilling contracts under Topic 606. Therefore, we do not expect any change in our revenue recognition patterns or disclosures as a result of our adoption of Topic 842. With respect to leases whereby we are the lessee, we elected several practical expedients afforded under Topic 842. We elected the package of practical expedients permitted under the transition guidance of Topic 842, including the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. We also elected the practical expedient to not separate lease components from non-lease components for all asset classes, with the exception of office space. Furthermore, we also elected the practical expedient that permits entities not to apply the recognition requirements for leases with a term of 12 months or less. Upon adoption of ASU 2016-02 on January 1, 2019, we recognized lease liabilities and right-of-use assets of $64.6 million and $53.7 million , respectively. See Note 14 for additional information. Defined Benefit Plans - In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. We will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2021, with early adoption permitted. Adoption is required to be applied on a retrospective basis to all periods presented. We are in the process of evaluating the impact this amendment will have on our condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers Our drilling contracts with customers provide a drilling rig and drilling services on a day rate contract basis. Under day rate contracts, we provide an integrated service that includes the provision of a drilling rig and rig crews for which we receive a daily rate that may vary between the full rate and zero rate throughout the duration of the contractual term, depending on the operations of the rig. We also may receive lump-sum fees or similar compensation for the mobilization, demobilization and capital upgrades of our rigs. Our customers bear substantially all of the costs of constructing the well and supporting drilling operations, as well as the economic risk relative to the success of the well. Our integrated drilling service provided under each drilling contract is a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. Total revenue is determined for each individual drilling contract by estimating both fixed and variable consideration expected to be earned over the contract term. Fixed consideration generally relates to activities such as mobilization, demobilization and capital upgrades of our rigs that are not distinct within the context of our contracts and is recognized on a straight-line basis over the contract term. Variable consideration generally relates to distinct service periods during the contract term and is recognized in the period when the services are performed. The amount estimated for variable consideration is only recognized as revenue to the extent that it is probable that a significant reversal will not occur during the contract term. We have applied the optional exemption afforded in Update 2014-09 and have not disclosed the variable consideration related to our estimated future day rate revenues. The remaining duration of our drilling contracts based on those in place as of June 30, 2019 was between approximately one month and four years . Day Rate Drilling Revenue Our drilling contracts provide for payment on a day rate basis and include a rate schedule with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The day rate invoiced to the customer is determined based on the varying rates applicable to specific activities performed on an hourly or other time increment basis. Day rate consideration is allocated to the distinct hourly or other time increment to which it relates within the contract term and is generally recognized consistent with the contractual rate invoiced for the services provided during the respective period. Invoices are typically billed to our customers on a monthly basis and payment terms on customer invoices typically range 30 - 45 days. Certain of our contracts contain performance incentives whereby we may earn a bonus based on pre-established performance criteria. Such incentives are generally based on our performance over individual monthly or other time periods or individual wells. Consideration related to performance bonus is generally recognized in the specific time period to which the performance criteria was attributed. We may receive termination fees if certain drilling contracts are terminated by the customer prior to the end of the contractual term. Such compensation is recognized as revenues whereby our performance obligation is satisfied, the termination fee can be reasonably measured and collection is probable. Mobilization / Demobilization Revenue In connection with certain contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. Fees received for the mobilization or demobilization of equipment and personnel are included in operating revenues. The costs incurred in connection with the mobilization and demobilization of equipment and personnel are included in contract drilling expense. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight-line basis over the contract term. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the contract term. In some cases, demobilization fees may be contingent upon the occurrence or non-occurrence of a future event. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Capital Upgrade / Contract Preparation Revenue In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. Fees received are recorded as a contract liability and amortized on a straight-line basis over the contract term to operating revenues. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Contract Assets and Liabilities Contract assets and liabilities are presented net on our condensed consolidated balance sheet on a contract-by-contract basis. Current contract assets and liabilities are included in other current assets and accrued liabilities and other, respectively, and noncurrent contract assets and liabilities are included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets. Contract assets represent amounts previously recognized as revenue but for which the right to invoice the customer is dependent upon our future performance. Once the previously recognized revenue is invoiced, the corresponding contract asset, or a portion thereof, is transferred to accounts receivable. Contract liabilities generally represent fees received for mobilization or capital upgrades. The following table summarizes our contract assets and contract liabilities (in millions): June 30, 2019 December 31, 2018 Current contract assets $ 12.8 $ 4.0 Current contract liabilities (deferred revenue) $ 46.2 $ 56.9 Noncurrent contract liabilities (deferred revenue) $ 14.8 $ 20.5 Significant changes in contract assets and liabilities during the period are as follows (in millions): Contract Assets Contract Liabilities Balance as of December 31, 2018 $ 4.0 $ 77.4 Contract assets acquired and liabilities assumed in the Rowan Transaction 8.4 5.3 Revenue recognized in advance of right to bill customer 2.3 — Increase due to cash received — 34.3 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (40.2 ) Decrease due to amortization of deferred revenue that was added during the period — (15.8 ) Decrease due to transfer to receivables during the period (1.9 ) — Balance as of June 30, 2019 $ 12.8 $ 61.0 Deferred Contract Costs Costs incurred for upfront rig mobilizations and certain contract preparation are attributable to our future performance obligation under each respective drilling contract. Such costs are deferred and amortized on a straight-line basis over the contract term. Demobilization costs are recognized as incurred upon contract completion. Costs associated with the mobilization of equipment and personnel to more promising market areas without contracts are expensed as incurred. Deferred contract costs were included in other current assets and other assets on our condensed consolidated balance sheets and totaled $45.1 million and $23.5 million as of June 30, 2019 and December 31, 2018 , respectively. During the three-month and six-month periods ended June 30, 2019 , amortization of such costs totaled $14.7 million and $21.1 million , respectively. During the three-month and six-month periods ended June 30, 2018 , amortization of such costs totaled $9.1 million and $15.9 million , respectively. Deferred Certification Costs We must obtain certifications from various regulatory bodies in order to operate our drilling rigs and must maintain such certifications through periodic inspections and surveys. The costs incurred in connection with maintaining such certifications, including inspections, tests, surveys and drydock, as well as remedial structural work and other compliance costs, are deferred and amortized on a straight-line basis over the corresponding certification periods. Deferred regulatory certification and compliance costs were included in other current assets and other assets on our condensed consolidated balance sheets and totaled $12.1 million and $13.6 million as of June 30, 2019 and December 31, 2018 , respectively. During the three-month and six-month periods ended June 30, 2019 , amortization of such costs totaled $2.8 million and $5.7 million , respectively. During the three-month and six-month periods ended June 30, 2018 , amortization of such costs totaled $3.2 million and $6.3 million , respectively. Expected Future Amortization of Contract Liabilities and Deferred Costs Our contract liabilities and deferred costs are amortized on a straight-line basis over the contract term or corresponding certification period to operating revenues and contract drilling expense, respectively. Expected future amortization of our contract liabilities and deferred costs recorded as of June 30, 2019 is set forth in the table below (in millions): Remaining 2019 2020 2021 2022 and Thereafter Total Amortization of contract liabilities $ 39.0 $ 11.7 $ 7.6 $ 2.7 $ 61.0 Amortization of deferred costs $ 39.7 $ 13.3 $ 2.8 $ 1.4 $ 57.2 |
Rowan Transaction
Rowan Transaction | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | On October 7, 2018 , we entered into a transaction agreement (the "Transaction Agreement") with Rowan. On April 11, 2019 (the "Transaction Date"), we completed our combination with Rowan pursuant to the Transaction Agreement (the "Rowan Transaction"). Rowan's financial results are included in our consolidated results beginning on the Transaction Date. Prior to the Rowan Transaction, Rowan and Saudi Aramco formed a 50/50 joint venture to own, manage and operate drilling rigs offshore Saudi Arabia ("Saudi Aramco Rowan Offshore Drilling Company" or "ARO"). ARO currently owns a fleet of seven jackup rigs, leases another nine jackup rigs from us (two of which are expected to commence drilling operations during the third quarter of 2019) and has plans to order up to 20 newbuild jackup rigs over the next 10 years . See Note 4 for additional information on ARO. The Rowan Transaction is expected to enhance the market leadership of the combined company with a fleet of high-specification floaters and jackups and position us well to meet increasing and evolving customer demand. The increased scale, diversification and financial strength of the combined company will provide us advantages to better serve our customers. Exclusive of two older jackup rigs marked for retirement, Rowan’s offshore rig fleet as of the Transaction Date consisted of four ultra-deepwater drillships and 19 jackup rigs. Consideration As a result of the Rowan Transaction, Rowan shareholders received 2.750 Valaris Class A ordinary shares for each Rowan Class A ordinary share, representing a value of $43.67 per Rowan share based on a closing price of $15.88 per Valaris share on April 10, 2019 , the last trading day before the Transaction Date. Total consideration delivered in the Rowan Transaction consisted of 88.3 million Valaris shares with an aggregate value of $1.4 billion , inclusive of $2.6 million for the estimated fair value of replacement employee equity awards. Upon closing of the Rowan Transaction, we effected a consolidation (being a reverse stock split under English law) where every four existing Class A ordinary shares, each with a nominal value of $0.10 , were consolidated into one Class A ordinary share, each with a nominal value of $0.40 . All share and per share data included in this report have been retroactively adjusted to reflect the Reverse Stock Split. Assets Acquired and Liabilities Assumed Under U.S. GAAP, Valaris is considered to be the acquirer for accounting purposes. As a result, Rowan's assets acquired and liabilities assumed in the Rowan Transaction were recorded at their estimated fair values as of the Transaction Date under the acquisition method of accounting. When the fair value of the net assets acquired exceeds the consideration transferred in an acquisition, the difference is recorded as a bargain purchase gain in the period in which the transaction occurs. We have not finalized the fair values of assets acquired and liabilities assumed; therefore, the fair value estimates set forth below are subject to adjustment during a one-year measurement period subsequent to the Transaction Date. The estimated fair values of certain assets and liabilities including materials and supplies, long-lived assets, contingencies and unrecognized tax benefits require judgments and assumptions that increase the likelihood that adjustments may be made to these estimates during the measurement period, and those adjustments could be material. The provisional amounts for assets acquired and liabilities assumed are based on preliminary estimates of their fair values as of the Transaction Date and are as follows (in millions): Estimated Fair Value Assets: Cash and cash equivalents $ 931.9 Accounts receivable (1) 207.1 Other current assets 101.6 Long-term notes receivable from ARO 454.5 Investment in ARO 138.8 Property and equipment 2,989.8 Other assets 41.7 Liabilities: Accounts payable and accrued liabilities 259.4 Current portion of long-term debt 203.2 Long-term debt 1,910.9 Other liabilities 376.3 Net assets acquired 2,115.6 Less: Transaction consideration (1,402.8 ) Estimated bargain purchase gain $ 712.8 (1) Gross contractual amounts receivable totaled $208.3 million as of the Transaction Date. Bargain Purchase Gain The estimated fair values assigned to assets acquired net of liabilities assumed exceeded the consideration transferred, resulting in a bargain purchase gain primarily driven by the decline in our share price from $33.92 to $15.88 between the last trading day prior to the announcement of the Rowan Transaction and the Transaction Date. The estimated bargain purchase gain of $712.8 million was reflected in other, net, in our condensed consolidated statement of operations for the three-month and six-month periods ended June 30, 2019 . Transaction-Related Costs Transaction-related costs were expensed as incurred and consisted of various advisory, legal, accounting, valuation and other professional or consulting fees totaling $15.0 million and $17.8 million for the three-month and six-month periods ended June 30, 2019 . These costs were included in general and administrative expense in our condensed consolidated statements of operations. Materials and Supplies We recorded materials and supplies at an estimated fair value of $83.0 million . Materials and supplies consist of consumable parts and supplies maintained on drilling rigs and in shore-based warehouse locations for use in operations and is generally comprised of items of low per unit cost and high reorder frequency. We estimated the fair value of Rowan's materials and supplies primarily using a market approach. Equity Method Investment in ARO The equity method investment in ARO was recorded at its estimated fair value as of the Transaction Date. See Note 4 for addition information on ARO. We estimated the fair value of the equity investment primarily by applying an income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate and an estimated effective income tax rate. Property and Equipment Property and equipment acquired in connection with the Rowan Transaction consisted primarily of drilling rigs and related equipment, including four drillships and 19 jackup rigs (exclusive of two jackups marked for retirement). We recorded property and equipment at its estimated fair value of $3.0 billion . We estimated the fair value of the rigs and equipment by applying an income approach, using projected discounted cash flows, a risk-adjusted discount rate and an estimated effective income tax rate. The estimated remaining useful lives for Rowan's drilling rigs ranged from 16 to 35 years based on original estimated useful lives of 30 to 35 years. Intangible Assets and Liabilities We recorded intangible assets and liabilities of $16.2 million and $2.1 million , respectively, representing the estimated fair value of Rowan's firm contracts in place at the Transaction Date with favorable or unfavorable contract terms compared to then-market day rates for comparable drilling rigs. The various factors considered in the determination of these fair values were (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the Transaction Date. The intangible assets and liabilities were calculated based on the present value of the difference in cash flows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated then-current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate. Operating revenues were reduced by $1.1 million for net asset amortization during the period from the Transaction Date through June 30, 2019 . The remaining balance of intangible assets and liabilities of $14.9 million and $1.9 million , respectively, was included in other assets and other liabilities, respectively, on our condensed consolidated balance sheet as of June 30, 2019 . These balances will be amortized to operating revenues over the respective remaining contract terms on a straight-line basis. As of June 30, 2019 , the remaining terms of the underlying contracts is approximately 2.5 years. Amortization of these intangibles is expected to result in a reduction to revenue of $2.6 million , $5.1 million and $5.4 million for 2019, 2020 and 2021, respectively. Long-term Debt We recorded Rowan's long-term debt at its estimated fair value as of the Transaction Date, which were based on quoted market prices for Rowan's publicly traded debt as of April 10, 2019. Deferred Taxes The Rowan Transaction was executed through the acquisition of Rowan's outstanding ordinary shares and, therefore, the historical tax bases of the acquired assets and assumed liabilities, net operating losses and other tax attributes of Rowan, were assumed as of the Transaction Date. However, adjustments were recorded to recognize deferred tax assets and liabilities for the tax effects of differences between acquisition date fair values and tax bases of assets acquired and liabilities assumed. Additionally, the interaction of our and Rowan's tax attributes that impacted the deferred taxes of the combined entity were also recognized as part of acquisition accounting. As of the Transaction Date, an increase of $10.0 million and a decrease of $98.0 million to Rowan's historical net deferred tax liabilities and deferred tax assets, respectively, was recognized. Deferred tax assets and liabilities recognized in connection with the Rowan Transaction were measured at rates enacted as of the Transaction Date. Tax rate changes, or any deferred tax adjustments for new tax legislation, following the Transaction Date will be reflected in our operating results in the period in which the change in tax laws or rate is enacted. Uncertain Tax Positions Uncertain tax positions assumed in a business combination are measured at the largest amount of the tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. As of the Transaction Date, Rowan had previously recognized net liabilities for uncertain tax positions totaling $50.4 million . Subsequent to the Transaction Date, we received tax assessments related to certain filing positions taken by Rowan in prior years totaling approximately $159.0 million . We continue to evaluate these and other Rowan filing positions and have recognized additional liabilities of $52.0 million , which reflects the amount of the Rowan filing positions that we have preliminarily concluded we will not more-likely-than-not sustain. Our continuing evaluation of the relevant facts and circumstances surrounding these positions may result in revisions to this estimate, which could be material. Revenue and Earnings of Rowan Our condensed consolidated statements of operations for the three-month and six-month periods end June 30, 2019 include revenues of $147.2 million and a net loss of $95.3 million associated with Rowan's operations from the Transaction Date through June 30, 2019 . Unaudited Pro Forma Impact of the Rowan Transaction The following unaudited supplemental pro forma results present consolidated information as if the Rowan Transaction was completed on January 1, 2018. The pro forma results include, among others, (i) the amortization associated with acquired intangible assets and liabilities (ii) a reduction in depreciation expense for adjustments to property and equipment (iii) the amortization of premiums and discounts recorded on Rowan's debt (iv) removal of the historical amortization of unrealized gains and losses related to Rowan's pension plans and (v) the amortization of basis differences in assets and liabilities of ARO. The pro forma results do not include any potential synergies or non-recurring charges that may result directly from the Rowan Transaction. (in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2019 (1) 2018 2019 (1) 2018 Revenues $ 599.0 $ 699.8 $ 1,179.5 $ 1,328.0 Net loss $ (264.9 ) $ (172.6 ) $ (596.4 ) $ (373.5 ) Loss per share - basic and diluted $ (1.35 ) $ (0.88 ) $ (3.04 ) $ (1.90 ) (1) Pro forma net loss and loss per share were adjusted to exclude an aggregate of $71.5 million and $ 80.8 million of transaction-related and integration costs incurred for the three-month and six-month periods ended June 30, 2019 , respectively, and the estimated $712.8 million bargain purchase gain. |
Equity Method Investment In ARO
Equity Method Investment In ARO Equity Method Investment In ARO | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment In ARO | Background During 2016, Rowan and Saudi Aramco entered into an agreement to create a 50/50 joint venture (the "Shareholders' Agreement") to own, manage and operate offshore drilling rigs in Saudi Arabia. The new entity, ARO, was formed in May 2017 with each of Rowan and Saudi Aramco contributing $25 million to be used for working capital needs. In October 2017, Rowan sold rigs Bob Keller, J.P. Bussell and Gilbert Rowe to ARO and Saudi Aramco sold SAR 201 and related assets to ARO in each case for cash. Upon completion of the rig sales, ARO was deemed to have commenced operations. Saudi Aramco subsequently sold another rig, SAR 202, to ARO in December 2017 for cash and in October 2018, Rowan sold two additional jackup rigs, the Scooter Yeargain and the Hank Boswell, to ARO for cash. As a result of these rig sales, ARO owns seven jackup rigs as of June 30, 2019 . During 2017 and 2018, Rowan contributed cash to ARO in exchange for 10-year shareholder notes receivable at a stated interest rate of LIBOR plus two percent. As of June 30, 2019 , the carrying amount of the long-term notes receivable from ARO was $453.1 million . The Shareholders’ Agreement prohibits the sale or transfer of the shareholder note to a third party, except in certain limited circumstances. Rigs purchased by ARO will receive contracts from Saudi Aramco for an aggregate 15 years , renewed and re-priced every three years , provided that the rigs meet the technical and operational requirements of Saudi Aramco. Each of the seven rigs owned by ARO is currently operating under its initial three-year contract. Additionally, prior to the Rowan Transaction, Rowan entered into agreements with ARO to lease nine rigs to ARO (the "Lease Agreements"). The rigs are leased to ARO through bareboat charter arrangements whereby substantially all operating costs are incurred by ARO. All nine leased rigs are under three-year drilling contracts with Saudi Aramco. As of June 30, 2019 , seven of the rigs were operating under their contracts and two rigs, the Bess Brants and Earnest Dees, were undergoing shipyard projects prior to commencing their contracts with Saudi Aramco. The Bess Brants and Earnest Dees are expected to commence drilling operations in August and September 2019, respectively. Rowan and Saudi Aramco have agreed to take all steps necessary to ensure that ARO purchases at least 20 newbuild jackup rigs ratably over 10 years . The partners intend for the newbuild jackup rigs to be financed out of available cash from ARO's operations and/or funds available from third-party debt financing. In the event ARO has insufficient cash from operations or is unable to obtain third party financing, each partner may periodically be required to make additional capital contributions to ARO, up to a maximum aggregate contribution of $1.25 billion to fund the newbuild program. Each partner's commitment shall be reduced by the actual cost of each newbuild rig, on a proportionate basis. The partners agreed that Saudi Aramco as a customer will provide drilling contracts to ARO in connection with the acquisition of the newbuild rigs. The initial contracts provided by Saudi Aramco for each of the newbuild rigs will be for an eight-year term. The day rate for the initial contracts for each newbuild rig will be determined using a pricing mechanism that targets a defined payback period for construction costs on an EBITDA basis. The initial eight-year contracts will be followed by a minimum of another eight years of term, re-priced in three-year intervals based on a market pricing mechanism. Upon establishment of ARO, Rowan also entered into (1) an agreement to provide certain back-office services for a period of time until ARO develops its own infrastructure (the "Transition Services Agreement"), and (2) an agreement to provide certain Rowan employees through secondment arrangements to assist with various onshore and offshore services for the benefit of ARO (the "Secondment Agreement"). These agreements remain in place subsequent to the Rowan Transaction. Pursuant to these agreements, we or our seconded employees provide various services to ARO, and in return, are provided remuneration for those services. From time to time, we may also sell equipment or supplies to ARO. The operating revenues of ARO presented below reflect revenues earned under drilling contracts with Saudi Aramco for the seven ARO-owned jackup rigs and the seven rigs leased from us that operated during the period from the Transaction Date through June 30, 2019 . The contract drilling expenses, depreciation and general and administrative expenses presented below are also for the period from the Transaction Date through June 30, 2019. Contract drilling expense is inclusive of the bareboat charter fees for the rigs leased from us. Cost incurred under the Secondment Agreement are included in both contract drilling expense and general and administrative, depending on the function to which the seconded employee's service relates. Substantially all costs incurred under the Transition Services Agreement are included in general and administrative. See additional discussion below regarding these related-party transactions. We account for our interest in ARO using the equity method of accounting and only recognize our portion of ARO's net income, adjusted for basis differences as discussed below, which is included in equity in earnings of ARO in our condensed consolidated statements of operations. ARO is a variable interest entity; however, we are not the primary beneficiary and therefore do not consolidate ARO. Judgments regarding our level of influence over ARO included considering key factors such as: each partner's ownership interest, representation on the board of managers of ARO and ability to direct activities that most significantly impact ARO's economic performance, including the ability to influence policy-making decisions. Summarized Financial Information Summarized financial information for ARO is as follows (in millions): April 11 - June 30, 2019 Revenues $ 123.8 Operating expenses Contract drilling (exclusive of depreciation) 78.9 Depreciation 12.4 General and administrative 5.3 Operating income 27.2 Other expense, net 8.7 Provision for income taxes 1.7 Net income $ 16.8 June 30, 2019 Current assets $ 434.9 Non-current assets 898.6 Total assets $ 1,333.5 Current liabilities $ 227.4 Non-current liabilities 1,030.6 Total liabilities $ 1,258.0 Equity in Earnings of ARO As a result of the Rowan Transaction, we recorded our equity method investment in ARO at its estimated fair value on the Transaction Date. Additionally, we computed the difference between the fair value of ARO's net assets and the carrying value of those net assets in ARO's GAAP financial statements ("basis differences"). The basis differences primarily relate to ARO's long-lived assets and the recognition of intangible assets associated with certain of ARO's drilling contracts that were determined to have favorable terms as of the Transaction Date. The basis differences are amortized over the remaining life of the assets or liabilities to which they relate and are recognized as an adjustment to the equity in earnings of ARO in our condensed consolidated statements of operations. The amortization of those basis differences are combined with our 50% interest in ARO's net income. A reconciliation of those components is presented below (in millions): April 11 - June 30, 2019 50% interest in ARO net income $ 8.4 Amortization of basis differences (7.8 ) Equity in earnings of ARO $ 0.6 Related-Party Transactions Revenues recognized by us related to the Lease Agreements, Transition Services Agreement and Secondment Agreement are as follows (in millions): April 11 - June 30, 2019 Lease revenue $ 18.3 Secondment revenue 15.6 Transition Services revenue 5.2 Total revenue from ARO (1) $ 39.1 (1) All of the revenues presented above are included in our Other segment in our segment disclosures. See Note 15 for additional information. We also have an agreement between us and ARO, pursuant to which ARO will reimburse us for certain capital expenditures related to the shipyard upgrade projects for the Bess Brants and Earnest Dees. As of June 30, 2019 , $14.3 million related to reimbursement of these expenditures is included in accounts receivable, net, on our condensed consolidated balance sheet. Amounts receivable from ARO related to the above items totaled $ 63.6 million as of June 30, 2019 and are included in accounts receivable, net, on our condensed consolidated balance sheet. Accounts payable to ARO totaled $ 2.8 million as of June 30, 2019. During 2017 and 2018, Rowan contributed cash to ARO in exchange for 10-year shareholder notes receivable at a stated interest rate of LIBOR plus two percent. Interest is recognized as interest income in our condensed consolidated statement of operations and totaled $5.1 million for the period from the Transaction Date through June 30, 2019 . As of June 30, 2019 , we had interest receivable from ARO of $ 11.5 million , which is included in other current assets on our condensed consolidated balance sheet. The following summarizes the total assets and liabilities as reflected in our condensed consolidated balance sheet as well as our maximum exposure to loss related to ARO (in millions). Generally, our maximum exposure to loss is limited to (1) our equity investment in ARO; (2) the outstanding balance on our shareholder notes receivable; and (3) other receivables for services provided to ARO, partially offset by payables for services received. June 30, 2019 Total assets $ 667.6 Less: total liabilities 2.8 Maximum exposure to loss $ 664.8 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following fair value hierarchy table categorizes information regarding our financial assets and liabilities measured at fair value on a recurring basis (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of June 30, 2019 Supplemental executive retirement plan assets $ 26.2 $ — $ — $ 26.2 Total financial assets $ 26.2 $ — $ — $ 26.2 Derivatives, net $ — $ (4.3 ) $ — $ (4.3 ) Total financial liabilities $ — $ (4.3 ) $ — $ (4.3 ) As of December 31, 2018 Supplemental executive retirement plan assets $ 27.2 $ — $ — $ 27.2 Total financial assets $ 27.2 $ — $ — $ 27.2 Derivatives, net $ — $ (10.7 ) $ — $ (10.7 ) Total financial liabilities $ — $ (10.7 ) $ — $ (10.7 ) Supplemental Executive Retirement Plan Assets Our supplemental executive retirement plans (the "SERP") are non-qualified plans that provide eligible employees an opportunity to defer a portion of their compensation for use after retirement. Assets held in the SERP were marketable securities measured at fair value on a recurring basis using Level 1 inputs and were included in other assets on our condensed consolidated balance sheets. The fair value measurement of assets held in the SERP was based on quoted market prices. Derivatives Our derivatives are measured at fair value on a recurring basis using Level 2 inputs. See Note 7 for additional information on our derivatives, including a description of our foreign currency hedging activities and related methodologies used to manage foreign currency exchange rate risk. The fair value measurement of our derivatives was based on market prices that are generally observable for similar assets or liabilities at commonly-quoted intervals. Other Financial Instruments The carrying values and estimated fair values of our long-term debt instruments were as follows (in millions): June 30, December 31, Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 7.875% Senior notes due 2019 (2) $ 202.0 $ 201.9 $ — $ — 6.875% Senior notes due 2020 126.2 122.4 127.5 121.6 4.70% Senior notes due 2021 113.0 105.8 112.7 101.8 4.875% Senior notes due 2022 (2) 595.0 572.6 — — 3.00% Exchangeable senior notes due 2024 (1) 682.8 666.4 666.8 575.5 4.50% Senior notes due 2024 620.1 467.7 619.8 405.2 4.75% Senior notes due 2024 (2) 339.5 304.0 — — 8.00% Senior notes due 2024 336.5 282.2 337.0 273.7 7.375% Senior notes due 2025 (2) 452.5 388.3 — — 5.20% Senior notes due 2025 664.8 494.1 664.4 443.9 7.75% Senior notes due 2026 986.1 750.7 985.0 725.5 7.20% Debentures due 2027 149.4 114.8 149.3 109.1 7.875% Senior notes due 2040 374.2 205.9 375.0 223.2 5.40% Senior notes due 2042 (2) 261.9 237.9 — — 5.75% Senior notes due 2044 973.4 585.9 972.9 566.3 5.85% Senior notes due 2044 (2) 268.0 233.8 — — Total debt $ 7,145.4 $ 5,734.4 $ 5,010.4 $ 3,545.8 Less: current maturities 1,125.3 921.2 — — Total long-term debt $ 6,020.1 $ 4,813.2 $ 5,010.4 $ 3,545.8 (1) Our exchangeable senior notes due 2024 (the "2024 Convertible Notes") were issued with a conversion feature. The 2024 Convertible Notes were separated into their liability and equity components on our condensed consolidated balance sheet. The equity component was initially recorded to additional paid-in capital and as a debt discount that will be amortized to interest expense over the life of the instrument. Excluding the unamortized discount, the carrying value of the 2024 Convertible Notes was $837.4 million and $836.3 million as of June 30, 2019 and December 31, 2018 , respectively. (2) These senior notes were assumed by Valaris as a result of the Rowan Transaction. The estimated fair values of our senior notes and debentures were determined using quoted market prices, which are level 1 inputs. The estimated fair values of our cash and cash equivalents, short-term investments, receivables, trade payables and other liabilities approximated their carrying values as of June 30, 2019 and December 31, 2018 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Prior to the Rowan Transaction, Rowan established various defined-benefit pension plans and a post-retirement health and life insurance plan that provide benefits upon retirement for certain full-time employees. The defined-benefit-pension plans include: (1) the Rowan Pension Plan; (2) the Rowan SERP; (3) the Norway Onshore Plan; and (4) the Norway Offshore Plan. The Retiree Medical Plan provides post-retirement health and life insurance benefits. As a result of the Rowan Transaction, we assumed these plans, which were remeasured as of the Transaction Date. Each of the plans has a benefit obligation that exceeds the fair value of plan assets. As of the Transaction Date, the net projected benefit obligations totaled $239.3 million , of which $19.2 million was classified as current. The current and non-current portions of the net benefit obligations are included in accrued liabilities and other liabilities in our condensed consolidated balance sheet, respectively. The most significant of the assumed plans is the Rowan Pension Plan, which had a net projected benefit obligation of $202.1 million . Prior to the Transaction Date, Rowan amended the Rowan Pension Plan to freeze the plan as to any future benefit accruals. As a result, eligible employees no longer receive pay credits in the pension plan and newly hired employees will not be eligible to participate in the pension plan. The components of net periodic pension cost were as follows (in millions): April 11 - June 30, 2019 Service cost (1) $ 0.4 Interest cost (2) 6.5 Expected return on plan assets (2) (8.2 ) Net periodic pension cost $ (1.3 ) (1) Included in contract drilling and general and administrative expense in our condensed consolidated statements of operations. (2) Included in other, net, in our condensed consolidated statements of operations. From the Transaction Date through June 30, 2019, we contributed $ 4.0 million to our pension and other post-retirement benefit plans and expect to make additional contributions to such plans totaling approximately $10.7 million for the remainder of 2019, which represent the minimum contributions we are required to make under relevant statutes. We do not expect to make contributions in excess of the minimum required amounts. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues are denominated in U.S. dollars; however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar. These transactions are remeasured in U.S. dollars based on a combination of both current and historical exchange rates. We use foreign currency forward contracts to reduce our exposure to various market risks, primarily foreign currency exchange rate risk. All of our derivatives were recorded on our condensed consolidated balance sheets at fair value. Derivatives subject to legally enforceable master netting agreements were not offset in our condensed consolidated balance sheets. 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. Net liabilities of $4.3 million and $10.7 million associated with our derivatives were included on our condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. All of our derivative instruments mature during the next 18 months . See "Note 5 - Fair Value Measurements" for additional information on the fair value measurement of our derivatives. Derivatives recorded at fair value on our condensed consolidated balance sheets consisted of the following (in millions): Derivative Assets Derivative Liabilities June 30, December 31, June 30, December 31, Derivatives Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .3 $ .2 $ 4.4 $ 8.3 Foreign currency forward contracts - non-current (2) — — .3 .4 $ .3 $ .2 $ 4.7 $ 8.7 Derivatives Not Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .8 $ .4 $ .7 $ 2.6 Total $ 1.1 $ .6 $ 5.4 $ 11.3 (1) Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets. (2) Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets. We utilize cash flow hedges to hedge forecasted foreign currency denominated transactions, primarily to reduce our exposure to foreign currency exchange rate risk associated with contract drilling expenses and capital expenditures denominated in various currencies. As of June 30, 2019 , we had cash flow hedges outstanding to exchange an aggregate $177.5 million for various foreign currencies, including $94.1 million for British pounds, $44.4 million for Australian dollars, $18.9 million for euros, $10.4 million for Singapore dollars and $9.7 million for Brazilian reals. Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our condensed consolidated statements of operations and comprehensive income (loss) were as follows (in millions): Three Months Ended June 30, 2019 and 2018 Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) (1) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (2) 2019 2018 2019 2018 2019 2018 Foreign currency forward contracts (4) $ (1.6 ) $ (7.6 ) $ 1.8 $ (.7 ) $ — $ (1.0 ) Total $ (1.6 ) $ (7.6 ) $ 1.8 $ (.7 ) $ — $ (1.0 ) Six Months Ended June 30, 2019 and 2018 Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) (1) Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (2) 2019 2018 2019 2018 2019 2018 Interest rate lock contracts (3) $ — $ — $ .1 $ .1 $ — $ — Foreign currency forward contracts (5) (1.6 ) (5.7 ) 3.3 (3.0 ) — (1.2 ) Total $ (1.6 ) $ (5.7 ) $ 3.4 $ (2.9 ) $ — $ (1.2 ) (1) Changes in the fair value of cash flow hedge derivatives are recorded in AOCI. Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction. (2) Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our condensed consolidated statements of operations. As a result of our adoption of Update 2017-12, which we adopted effective January 1, 2019, ineffectiveness is no longer separately measured and recognized. See additional information in Note 1 . (3) Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net, in our condensed consolidated statements of operations. (4) During the second quarter of 2019, $2.0 million of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the prior year quarter, $500,000 of gains were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. (5) During the six-month period ended June 30, 2019 , $3.7 million of losses were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the six-month period ended June 30, 2018 , $2.6 million of gains were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. We have net assets and liabilities denominated in numerous foreign currencies and use various methods to manage our exposure to foreign currency exchange rate risk. We predominantly structure our drilling contracts in U.S. dollars, which significantly reduces the portion of our cash flows and assets denominated in foreign currencies. We occasionally enter into derivatives that hedge the fair value of recognized foreign currency denominated assets or liabilities but do not designate such derivatives as hedging instruments. In these situations, a natural hedging relationship generally exists whereby changes in the fair value of the derivatives offset changes in the fair value of the underlying hedged items. As of June 30, 2019 , we held derivatives not designated as hedging instruments to exchange an aggregate $104.2 million for various foreign currencies, including $28.1 million for Australian dollars, $ 13.8 million for Indonesian rupiahs, $ 13.4 million for Qatari riyals, $ 8.3 million for British pounds, $ 7.3 million for Nigerian Naira, $ 6.8 million for Thai Baht, $ 6.2 million for Israeli New Shekel, $5.3 million for euros, and $15.0 million for other currencies. Net losses of $2.2 million and $9.3 million associated with our derivatives not designated as hedging instruments were included in other, net, in our condensed consolidated statements of operations for the three-month periods ended June 30, 2019 and 2018 , respectively. Net losses of $5.3 million and $7.5 million associated with our derivatives not designated as hedging instruments were included in other, net, in our condensed consolidated statements of operations for the six-month periods ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , the estimated amount of net losses associated with derivative instruments, net of tax, that would be reclassified into earnings during the next twelve months totaled $2.9 million . |
Noncontrolling Interest Noncont
Noncontrolling Interest Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries. Noncontrolling interests are classified as equity on our condensed consolidated balance sheets, and net income attributable to noncontrolling interests is presented separately in our condensed consolidated statements of operations. Loss from continuing operations attributable to Valaris for the three-month and six-month periods ended June 30, 2019 and 2018 was as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations $ 407.3 $ (142.1 ) $ 219.3 $ (282.5 ) Income from continuing operations attributable to noncontrolling interests (1.8 ) (.9 ) (4.2 ) (0.5 ) Income (loss) from continuing operations attributable to Valaris $ 405.5 $ (143.0 ) $ 215.1 $ (283.0 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We compute basic and diluted earnings per share ("EPS") in accordance with the two-class method. Net income attributable to Valaris used in our computations of basic and diluted EPS is adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS is calculated using the treasury stock method and excludes non-vested shares. During the three-month and six-month periods ended June 30, 2019 and 2018 , all income attributable to noncontrolling interests was from continuing operations. The following table is a reconciliation of income (loss) from continuing operations attributable to Valaris shares used in our basic and diluted EPS computations for the three-month and six-month periods ended June 30, 2019 and 2018 (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations attributable to Valaris $ 405.5 $ (143.0 ) $ 215.1 $ (283.0 ) Income from continuing operations allocated to non-vested share awards (1) (12.1 ) (.1 ) (6.3 ) (.2 ) Income (loss) from continuing operations attributable to Valaris shares $ 393.4 $ (143.1 ) $ 208.8 $ (283.2 ) (1) Losses are not allocated to non-vested share awards. Therefore, in periods in which we were in a net loss position, only dividends attributable to our non-vested share awards are included. Anti-dilutive share awards totaling 400.000 and 300,000 were excluded from the computation of diluted EPS for the three-month and six-month periods ended June 30, 2019 , respectively. Anti-dilutive share awards totaling 1.7 million were excluded from the computation of diluted EPS for the three-month and six-month periods ended June 30, 2018 . We have the option to settle our 2024 Convertible Notes in cash, shares or a combination thereof for the aggregate amount due upon conversion. Our intent is to settle the principal amount of the 2024 Convertible Notes in cash upon conversion. If the conversion value exceeds the principal amount, (i.e., our share price exceeds the exchange price on the date of conversion), we expect to deliver shares equal to the remainder of our conversion obligation in excess of the principal amount. During each reporting period that our average share price exceeds the exchange price, an assumed number of shares required to settle the conversion obligation in excess of the principal amount will be included in our denominator for the computation of diluted EPS using the treasury stock method. Our average share price did not exceed the exchange price during the three-month or six-month periods ended June 30, 2019 and 2018 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Rowan Transaction As a result of the Rowan Transaction, we assumed the following debt from Rowan: (1) $201.4 million in aggregate principal amount of 7.875% unsecured senior notes due 2019, (2) $620.8 million in aggregate principal amount of 4.875% unsecured senior notes due 2022, (3) $398.1 million in aggregate principal amount of 4.75% unsecured senior notes due 2024, (4) $500.0 million in aggregate principal amount of 7.375% unsecured senior notes due 2025, (5) $400.0 million in aggregate principal amount of 5.4% unsecured senior notes due 2042 and (6) $400.0 million in aggregate principal amount of 5.85% unsecured senior notes due 2044. Upon closing of the Rowan Transaction, we terminated Rowan's outstanding credit facilities. Effective upon closing of the Rowan Transaction, we amended our credit facility to, among other changes, increase the borrowing capacity. Previously, our borrowing capacity was $2.0 billion through September 2019, $1.3 billion through September 2020 and $1.2 billion through September 2022. Subsequent to the amendment, our borrowing capacity is $2.3 billion through September 2019 and $1.7 billion through September 2022. The credit agreement governing the credit facility includes an accordion feature allowing us to increase future commitments up to an aggregate amount not to exceed $250.0 million . Revolving Credit Facility We had no amounts outstanding under our credit facility as of June 30, 2019 and December 31, 2018 . On July 29, 2019, we borrowed $125.0 million under our credit facility to partially fund the maturity of our 7.875% senior notes due in August 2019. Tender Offers On June 25, 2019, we commenced cash tender offers for up to $600 million aggregate purchase price, exclusive of accrued interest, for certain series of senior notes issued by us and by Ensco International Incorporated and Rowan Companies, Inc., our wholly-owned subsidiaries. On July 10, 2019, we announced the early results of the tender offers and also announced that the maximum aggregate purchase price, exclusive of accrued interest, was increased from $600 million to $724.1 million and that the early settlement date would be July 12, 2019. The tender offers expired on July 23, 2019, and we repurchased $951.8 million aggregate principal amount of notes. The following table sets forth the total principal amounts repurchased and purchase price paid in the tender offers (in millions): Aggregate Principal Amount Repurchased Aggregate Repurchase Price (1) 4.50% Senior notes due 2024 $ 320.0 $ 240.0 5.20% Senior notes due 2025 335.5 250.0 7.20% Senior notes due 2027 37.9 29.9 4.75% Senior notes due 2024 79.5 61.2 7.375% Senior notes due 2025 139.2 109.2 8.00% Senior notes due 2024 39.7 33.8 Total $ 951.8 $ 724.1 (1) Excludes accrued interest paid to holders of the repurchased senior notes. During the third quarter of 2019, we expect to recognize a pre-tax gain from debt extinguishment of approximately $195.7 million related to the tender offers, net of discounts, premiums and transaction costs. |
Shareholders Equity (Notes)
Shareholders Equity (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Shareholders' Equity Activity in our various shareholders' equity accounts for the six-month periods ended June 30, 2019 and 2018 were as follows (in millions): Shares Par Value Additional Paid-in Capital Retained Earnings AOCI Treasury Shares Non-controlling Interest BALANCE, December 31, 2018 115.2 $ 46.2 $ 7,225.0 $ 874.2 $ 18.2 $ (72.2 ) $ (2.6 ) Net loss — — — (190.4 ) — — 2.4 Dividends paid ($0.04 per share) — — — (4.5 ) — — — Shares issued under share-based compensation plans, net — — (.1 ) — — .1 — Repurchase of shares — — — — — (2.8 ) — Share-based compensation cost — — 5.3 — — — — Net other comprehensive income — — — — 1.5 — — BALANCE, March 31, 2019 115.2 $ 46.2 $ 7,230.2 $ 679.3 $ 19.7 $ (74.9 ) $ (0.2 ) Net income — — — 405.5 — — 1.8 Equity issuance in connection with the Rowan Transaction 88.0 35.2 1,365.5 — — 2.1 — Shares issued under share-based compensation plans, net 2.6 1.1 (1.1 ) — — (.8 ) — Repurchase of shares — — — — — (1.4 ) — Share-based compensation cost — — 13.8 — — — — Net other comprehensive income — — — — .2 — — BALANCE, June 30, 2019 205.8 $ 82.5 $ 8,608.4 $ 1,084.8 $ 19.9 $ (75.0 ) $ 1.6 Shares Par Value Additional Retained AOCI Treasury Non-controlling BALANCE, December 31, 2017 111.8 $ 44.8 $ 7,195.0 $ 1,532.7 $ 28.6 $ (69.0 ) $ (2.1 ) Net loss — — — (140.1 ) — — (.4 ) Dividends paid ($0.04 per share) — — — (4.4 ) — — — Cumulative-effect due to ASU 2018-02 — — — (.8 ) .8 — — Shares issued under share-based compensation plans, net — — (.1 ) — — .1 — Repurchase of shares — — — — — (1.1 ) — Share-based compensation cost — — 7.5 — — — — Net other comprehensive loss — — — — (.4 ) — — BALANCE, March 31, 2018 111.8 $ 44.8 $ 7,202.4 $ 1,387.4 $ 29.0 $ (70.0 ) $ (2.5 ) Net loss — — — (151.0 ) — — .9 Dividends paid ($0.04 per share) — — — (4.4 ) — — — Shares issued under share-based compensation plans, net 3.4 1.4 (.4 ) — — (1.4 ) — Distributions to noncontrolling interests — — — — — — (.7 ) Repurchase of shares — — — — — (.6 ) — Share-based compensation cost — — 7.5 — — — — Net other comprehensive loss — — — — (8.5 ) — — BALANCE, June 30, 2018 115.2 $ 46.2 $ 7,209.5 $ 1,232.0 $ 20.5 $ (72.0 ) $ (2.3 ) In connection with the Rowan Transaction on April 11, 2019 , we issued 88.3 million Class A ordinary shares with an aggregate value of $1.4 billion . See Note 3 for additional information. On April 11, 2019 , we completed our combination with Rowan and effected a four-to-one share consolidation (being a reverse stock split under English law or the "Reverse Stock Split"). All share and per-share amounts in these financial statements have been retrospectively adjusted to reflect the Reverse Stock Split. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes Valaris plc, our parent company, is domiciled and resident in the U.K. Our subsidiaries conduct operations and earn income in numerous countries and are subject to the laws of taxing jurisdictions within those countries. The income of our non-U.K. subsidiaries is generally not subject to U.K. taxation. Income tax rates imposed in the tax jurisdictions in which our subsidiaries conduct operations vary, as does the tax base to which the rates are applied. In some cases, tax rates may be applicable to gross revenues, statutory or negotiated deemed profits or other bases utilized under local tax laws, rather than to net income. Therefore, we generally incur income tax expense in periods in which we operate at a loss. Our drilling rigs frequently move from one taxing jurisdiction to another to perform contract drilling services. In some instances, the movement of our drilling rigs among taxing jurisdictions will involve the transfer of ownership of the drilling rigs among our subsidiaries. As a result of frequent changes in the taxing jurisdictions in which our drilling rigs are operated and/or owned, changes in the overall level of our income and changes in tax laws, our consolidated effective income tax rate may vary substantially from one reporting period to another. Income tax rates and taxation systems in the jurisdictions in which our subsidiaries conduct operations vary and our subsidiaries are frequently subjected to minimum taxation regimes. In some jurisdictions, tax liabilities are based on gross revenues, statutory or negotiated deemed profits or other factors, rather than on net income and our subsidiaries are frequently unable to realize tax benefits when they operate at a loss. Accordingly, during periods of declining profitability, our consolidated income tax expense generally does not decline proportionally with consolidated income, which results in higher effective income tax rates. Furthermore, we generally continue to incur income tax expense in periods in which we operate at a loss on a consolidated basis. Historically, we calculated our provision for income taxes during interim reporting periods by applying the estimated annual effective tax rate for the full fiscal year to pre-tax income or loss, excluding discrete items, for the reporting period. We determined that since small changes in estimated pre-tax income or loss would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate of income taxes for the three-month and six-month periods ended June 30, 2019 and 2018 . We used a discrete effective tax rate method to calculate income taxes for the three-month and six-month periods ended June 30, 2019 and 2018 . We will continue to evaluate income tax estimates under the historical method in subsequent quarters and employ a discrete effective tax rate method if warranted. Discrete income tax benefit for the three-month period ended June 30, 2019 was $1.2 million and was primarily attributable to the resolution of prior period tax matters. Discrete income tax benefit for the three-month period ended June 30, 2018 was $2.3 million and was primarily attributable to U.S. tax reform and a restructuring transaction, partially offset by discrete tax expense related to the repurchase and redemption of senior notes and unrecognized tax benefits associated with tax positions taken in prior years. Excluding the aforementioned discrete tax items, income tax expense for the three-month periods ended June 30, 2019 and 2018 was $33.8 million and $27.0 million , respectively. The 6.8 million increase in income tax expense as compared to the prior year quarter was primarily due to income tax associated with Rowan's operations from the Transaction Date. Discrete income tax benefit for the six-month period ended June 30, 2019 was $0.6 million and was primarily attributable to unrecognized tax benefits associated with tax positions taken in prior years and the resolution of other prior period tax matters. Discrete income tax benefit for the six-month period ended June 30, 2018 was $11.2 million and was primarily attributable to U.S. tax reform and a restructuring transaction, partially offset by discrete tax expense related to repurchase and redemption of senior notes, the effective settlement of liabilities for unrecognized tax benefits associated with tax positions taken in prior years and rig sales. Excluding the aforementioned discrete tax items, income tax expense for the six-month periods ended June 30, 2019 and 2018 was $64.7 million and $54.3 million , respectively. The $10.4 million increase in income tax expense as compared to the prior year period was primarily due to income tax associated with Rowan's operations from the Transaction Date and an increase in the U.S. base erosion anti-abuse tax rate and an increase in the relative components of our earnings generated in tax jurisdictions with higher tax rates. Recent Tax Assessments During the second quarter of 2019, the Luxembourg tax authorities issued aggregate tax assessments totaling approximately $159 million plus interest related to tax years 2014, 2015 and 2016 for several of Rowan’s Luxembourg subsidiaries. Although we are vigorously contesting these assessments, we have recorded an estimated liability for uncertain tax positions taken during these years as part of our acquisition accounting for the Rowan Transaction, which could change materially as we complete our evaluation of the filing positions. See Note 3 for additional information. Although the outcome of such assessments and related administrative proceedings cannot be predicted with certainty, an unfavorable outcome could result in a material adverse effect on our financial position, operating results and cash flows. During the second quarter of 2019, the Australian tax authorities issued aggregate tax assessments totaling approximately $69 million plus interest related to the examination of certain of our tax returns for years 2011 through 2016. We believe our tax returns are materially correct as filed, and we are vigorously contesting these assessments. Although the outcome of such assessments and related administrative proceedings cannot be predicted with certainty, we do not expect these matters to have a material adverse effect on our financial position, operating results and cash flows. Other Matters In July 2019, we began executing a series of restructuring transactions that we plan to complete in August 2019. In connection with this restructuring, we expect to recognize an approximate $900 million deferred tax asset for a U.S. capital loss, which will be subject to a full valuation allowance because we more-likely-than-not will be unable to realize a future benefit from such capital loss. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies DSA Dispute On January 4, 2016, Petrobras sent a notice to us declaring the drilling services agreement with Petrobras (the "DSA") for ENSCO DS-5, a drillship ordered from Samsung Heavy Industries, a shipyard in South Korea ("SHI"), void effective immediately, reserving its rights and stating its intention to seek any restitution to which it may be entitled. The previously disclosed arbitral hearing on liability related to the matter was held in March 2018. Prior to the arbitration tribunal issuing its decision, we and Petrobras agreed in August 2018 to a settlement of all claims relating to the DSA. No payments were made by either party in connection with the settlement agreement. The parties agreed to normalize business relations and the settlement agreement provides for our participation in current and future Petrobras tenders on the same basis as all other companies invited to these tenders. No losses were recognized during 2018 with respect to this settlement as all disputed receivables with Petrobras related to the DSA were fully reserved in 2015. In April 2016, we initiated separate arbitration proceedings in the U.K. against SHI for the losses incurred in connection with the foregoing Petrobras arbitration and certain other losses relating to the DSA. In January 2018, the arbitration tribunal for the SHI matter issued an award on liability fully in our favor. The January 2018 arbitration award provides that SHI is liable to us for $10.0 million or damages that we can prove. We submitted our claim for damages to the tribunal, and the arbitral hearing on damages owed to us by SHI took place in the first quarter of 2019. In May 2019, the arbitration tribunal for the SHI matter awarded us $180.0 million in damages. Further, we are entitled to claim interest on this award and costs incurred in connection with this matter. In June 2019, we and SHI filed separate applications with the English High Court to seek leave to appeal the damages awarded. We are awaiting the English High Court decision as to whether it will hear the appeal, which decision is expected in the fourth quarter of 2019. There can be no assurance when we will collect all or any portion of the damages awarded or any related interest or costs. Other Matters In addition to the foregoing, we are named defendants or parties in certain other lawsuits, claims or proceedings incidental to our business and are involved from time to time as parties to governmental investigations or proceedings, including matters related to taxation, arising in the ordinary course of business. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, we do not expect these matters to have a material adverse effect on our financial position, operating results or cash flows. In the ordinary course of business with customers and others, we have entered into letters of credit to guarantee our performance as it relates to our drilling contracts, contract bidding, customs duties, tax appeals and other obligations in various jurisdictions. Letters of credit outstanding as of June 30, 2019 totaled $135.9 million and are issued under facilities provided by various banks and other financial institutions. Obligations under these letters of credit and surety bonds are not normally called, as we typically comply with the underlying performance requirement. As of June 30, 2019 , we had not been required to make collateral deposits with respect to these agreements. In July 2019, a well being drilled offshore Indonesia by one of our jackup rigs experienced a well control event requiring the cessation of drilling activities. The operator could seek to terminate the contract under certain circumstances. If this drilling contract were to be terminated for cause, it would result in an approximate $19.0 million decrease in our backlog as of June 30, 2019. On July 30, 2019, we received notice that a local partner of legacy Ensco plc in the Middle East filed a lawsuit in the U.K. against the Company alleging it induced the breach of a non-compete provision in an agreement between the local partner and a subsidiary of the Company. The lawsuit includes a claim for an unspecified amount of damages in excess of £100 million and other relief. We believe the claim is without merit and intend to vigorously defend against the lawsuit. We do not have sufficient information at this time to provide a reasonable estimate of potential liability, if any. As a result, there can be no assurance as to how this dispute will ultimately be resolved. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases We have operating leases for office space, facilities, equipment, employee housing and certain rig berthing facilities. For all asset classes, except office space, we account for the lease component and the non-lease component as a single lease component. Our leases have remaining lease terms of less than one year to 11 years, some of which include options to extend. Additionally, we sublease certain office space to third parties. The components of lease expense are as follows (in millions): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Long-term operating lease cost $ 7.0 $ 13.2 Short-term operating lease cost 2.2 5.3 Sublease income (.4 ) (.7 ) Total operating lease cost $ 8.8 $ 17.8 Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): June 30, 2019 Operating lease right-of-use assets (1) $ 57.1 Current lease liability (1) $ 21.5 Long-term lease liability (1) 48.6 Total operating lease liabilities $ 70.1 Weighted-average remaining lease term (in years) 5.4 Weighted-average discount rate (2) 8.00 % (1) The right-of-use assets include $12.2 million assumed in the Rowan Transaction. The current and long-term lease liabilities include $3.9 million and $10.6 million , respectively, assumed in the Rowan Transaction. (2) Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases. For the three and six-month periods ended June 30, 2019 , cash paid for amounts included in the measurement of our operating lease liabilities was $7.2 million and $14.2 million , respectively. Right-of-use assets and lease liabilities recorded for leases commencing during the quarter ended June 30, 2019 were insignificant. Maturities of lease liabilities as of June 30, 2019 were as follows (in millions): Year Ending December 31, Total 2019 (excluding the six months ended June 30, 2019) $ 15.3 2020 19.5 2021 10.8 2022 9.9 2023 10.2 Thereafter 22.1 Total lease payments $ 87.8 Less imputed interest (17.7 ) Total $ 70.1 In July 2019, we entered into operating lease agreements for rig berthing facilities. Future payments for these leases are approximately $9.6 million . The leases commence in fiscal year 2019 and have lease terms of one to two years. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | Segment Information Prior to the Rowan Transaction, our business consisted of three operating segments: (1) Floaters, which included our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which consisted only of our management services provided on rigs owned by third-parties. Our Floaters and Jackups segments were also reportable segments. As a result of the Rowan Transaction, we concluded that we would maintain the aforementioned segment structure while adding ARO as a reportable segment for the new combined company. We also concluded that the activities associated with our arrangements with ARO, consisting of our Transition Services Agreement, Rig Lease Agreements and Secondment Agreement, do not constitute reportable segments and are therefore included within Other in the following segment disclosures. Substantially all of the expenses incurred associated with our Transition Services Agreement are included in general and administrative under "Reconciling Items" in the table set forth 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 are included in "Reconciling Items." The full operating results included below for ARO (representing only results of operations of ARO from the Transaction Date) are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. See Note 4 for additional information on ARO and related arrangements. Segment information for the three-month and six-month periods ended June 30, 2019 and 2018 is presented below (in millions): Three Months Ended June 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 295.6 $ 229.2 $ 123.8 $ 59.1 $ (123.8 ) $ 583.9 Operating expenses Contract drilling (exclusive of depreciation) 249.2 212.2 78.9 38.9 (78.9 ) 500.3 Loss on impairment — — — — 2.5 2.5 Depreciation 98.4 55.5 12.4 — (8.4 ) 157.9 General and administrative — — 5.3 — 75.9 81.2 Equity in earnings of ARO — — — — 0.6 0.6 Operating income (loss) $ (52.0 ) $ (38.5 ) $ 27.2 $ 20.2 $ (114.3 ) $ (157.4 ) Property and equipment, net $ 10,364.7 $ 5,055.6 $ 656.5 $ — $ (621.1 ) $ 15,455.7 Three Months Ended June 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 284.9 $ 158.7 $ — $ 14.9 $ — $ 458.5 Operating expenses — Contract drilling (exclusive of depreciation) 203.7 126.8 — 13.8 — 344.3 Depreciation 80.8 36.5 — — 3.4 120.7 General and administrative — — — — 26.1 26.1 Operating income (loss) $ 0.4 $ (4.6 ) $ — $ 1.1 $ (29.5 ) $ (32.6 ) Property and equipment, net $ 9,574.9 $ 3,167.0 $ — $ — $ 42.0 $ 12,783.9 Six Months Ended June 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 528.3 $ 386.2 $ 123.8 $ 75.3 $ (123.8 ) $ 989.8 Operating expenses — Contract drilling (exclusive of depreciation) 431.0 347.6 78.9 54.3 (78.9 ) 832.9 Loss on impairment — — — — 2.5 2.5 Depreciation 183.2 92.4 12.4 — (5.1 ) 282.9 General and administrative — — 5.3 — 105.5 110.8 Equity in earnings of ARO — — — — 0.6 0.6 Operating income (loss) $ (85.9 ) $ (53.8 ) $ 27.2 $ 21.0 $ (147.2 ) $ (238.7 ) Property and equipment, net $ 10,364.7 $ 5,055.6 $ 656.5 $ — $ (621.1 ) $ 15,455.7 Six Months Ended June 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 543.9 $ 302.1 $ — $ 29.5 $ — $ 875.5 Operating expenses — Contract drilling (exclusive of depreciation) 388.8 253.7 — 27.0 — 669.5 Depreciation 156.1 73.0 — — 6.8 235.9 General and administrative — — — — 54.0 54.0 Operating income (loss) $ (1.0 ) $ (24.6 ) $ — $ 2.5 $ (60.8 ) (83.9 ) Property and equipment, net $ 9,574.9 $ 3,167.0 $ — $ — $ 42.0 12,783.9 Information about Geographic Areas As of June 30, 2019 , the geographic distribution of our and ARO's drilling rigs was as follows: Floaters Jackups Other (1) Total Valaris ARO North & South America 12 9 — 21 — Europe & Mediterranean 5 17 — 22 — Middle East & Africa (2) 5 11 9 25 7 Asia & Pacific Rim 4 7 — 11 — Asia & Pacific Rim (under construction) 2 — — 2 — Total 28 44 9 81 7 (1) The rigs included in the "Other" segment represent the nine rigs leased to ARO (two of which are expected to commence drilling operations during the third quarter of 2019). See Note 4 for additional information. (2) The number of Middle East & Africa Jackup drilling rigs excludes one older Rowan jackup rig marked for retirement. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Consolidated Balance Sheet Information Accounts receivable, net, consisted of the following (in millions): June 30, December 31, Trade $ 568.3 $ 301.7 Other 68.9 46.4 637.2 348.1 Allowance for doubtful accounts (8.5 ) (3.4 ) $ 628.7 $ 344.7 Other current assets consisted of the following (in millions): June 30, December 31, Materials and supplies $ 360.7 $ 268.1 Prepaid taxes 58.3 35.0 Deferred costs 47.5 23.5 Prepaid expenses 16.2 15.2 Other 17.0 19.1 $ 499.7 $ 360.9 Other assets consisted of the following (in millions): June 30, December 31, Right-of-use assets $ 57.1 $ — Deferred tax assets 31.4 29.4 Supplemental executive retirement plan assets 26.2 27.2 Deferred costs 19.9 21.5 Intangible assets 14.9 — Other 19.9 19.7 $ 169.4 $ 97.8 Accrued liabilities and other consisted of the following (in millions): June 30, December 31, Accrued interest $ 136.9 $ 100.6 Personnel costs 101.2 82.5 Income and other taxes payable 53.7 36.9 Deferred revenue 46.2 56.9 Accrued rig holding costs 26.5 14.3 Lease liabilities 21.5 — Pension and other post-retirement benefits 19.7 — Derivative liabilities 5.1 10.9 Other 27.5 15.9 $ 438.3 $ 318.0 Other liabilities consisted of the following (in millions): June 30, December 31, Unrecognized tax benefits (inclusive of interest and penalties) $ 276.2 $ 177.0 Pension and other post-retirement benefits 214.4 — Deferred tax liabilities 106.5 70.7 Intangible liabilities 53.8 53.5 Lease liabilities 48.6 — Supplemental executive retirement plan liabilities 26.9 28.1 Personnel costs 22.7 25.1 Deferred revenue 14.8 20.5 Deferred rent — 11.7 Other 35.1 9.4 $ 799.0 $ 396.0 Accumulated other comprehensive income consisted of the following (in millions): June 30, December 31, Derivative instruments $ 14.4 $ 12.6 Currency translation adjustment 7.3 7.3 Other (1.8 ) (1.7 ) $ 19.9 $ 18.2 Concentration of Risk We are exposed to credit risk related to our receivables from customers, our cash and cash equivalents, our short-term investments and our use of derivatives in connection with the management of foreign currency exchange rate risk. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which generally have been within our expectations. We mitigate our credit risk relating to cash and cash equivalents by focusing on diversification and quality of instruments. Cash equivalents consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents is maintained at several well-capitalized financial institutions, and we monitor the financial condition of those financial institutions. We mitigate our credit risk relating to derivative counterparties through a variety of techniques, including transacting with multiple, high-quality financial institutions, thereby limiting our exposure to individual counterparties and by entering into International Swaps and Derivatives Association, Inc. ("ISDA") Master Agreements, which include provisions for a legally enforceable master netting agreement, with almost all of our derivative counterparties. The terms of the ISDA agreements may also include credit support requirements, cross default provisions, termination events or set-off provisions. Legally enforceable master netting agreements reduce credit risk by providing protection in bankruptcy in certain circumstances and generally permitting the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. See Note 5 for additional information on our derivatives. Consolidated revenues by customer for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Total (1) 13 % 13 % 15 % 14 % Saudi Aramco (2) 9 % 9 % 10 % 9 % BP (3) 9 % 5 % 8 % 8 % Petrobras (4) 4 % 10 % 5 % 11 % Other 65 % 63 % 62 % 58 % 100 % 100 % 100 % 100 % (1) During the three-month and six-month periods ended June 30, 2019 , 90% and 95% of revenues provided by Total were attributable to the Floaters segment and the remainder was attributable to the Jackup segments. During the three-month and six-month periods ended June 30, 2018 , all revenues were attributable to our Floaters segment. (2) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues were attributable to our Jackups segment. (3) During the three-month period ended June 30, 2019 , 44% of the revenues provided by BP were attributable to our Jackups segment, 19% of the revenues were attributable to our Floaters segment and the remaining was attributable to our managed rigs. During the three-month period ended June 30, 2018 , 28% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our managed rigs. During the six-month period ended June 30, 2019 , 39% of the revenues provided by BP were attributable to our Jackups segment, 13% of the revenues were attributable to our Floaters segment and the remainder was attributable to our managed rigs. During the six-month period ended June 30, 2018 , 43% of the revenues provided by BP were attributable to our Floaters segment, 15% of the revenues were attributable to our Jackups segment and the remainder was attributable to our managed rigs. (4) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues were attributable to our Floaters segment. Consolidated revenues by region for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 U.S. Gulf of Mexico (1) $ 93.4 $ 59.5 $ 148.1 $ 113.1 Saudi Arabia (2) 83.2 39.5 136.6 82.7 Australia (3) 70.0 80.4 137.3 132.6 Angola (4) 68.1 72.2 138.7 133.3 United Kingdom (5) 54.2 53.7 97.6 100.3 Brazil (6) 25.1 46.1 47.1 96.4 Other 189.9 107.1 284.4 217.1 $ 583.9 $ 458.5 $ 989.8 $ 875.5 (1) During the three-month period ended June 30, 2019 , 39% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 39% were attributable to our Jackups segment, and the remaining revenues were attributable to our managed rigs. During the three-month period ended June 30, 2018 , 36% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 39% were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs. During the six-month period ended June 30, 2019 , 34% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 41% were attributable to our Jackups segment, and the remaining revenues were attributable to our managed rigs. During the six-month period ended June 30, 2018 , our Floaters and Jackups segments each earned 37% of the revenues in the U.S. Gulf of Mexico, and the remaining revenues were attributable to our managed rigs. (2) During the three-month and six-month periods ended June 30, 2019 , 60% and 76% of the revenues earned in Saudi Arabia, respectively, were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. During the three-month and six-month period ended June 30, 2018 , all revenues earned in Saudi Arabia were attributable to our Jackups segment. (3) During the three-month periods ended June 30, 2019 and 2018 , 94% and 95% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2019 and 2018 , 94% and 97% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. (4) During the three-month periods ended June 30, 2019 and 2018 , 90% and 84% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2019 and 2018 , 88% and 90% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. (5) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues earned in the United Kingdom were attributable to our Jackups segment. (6) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues earned in Brazil were attributable to our Floaters segment. |
Guarantee Of Registered Securit
Guarantee Of Registered Securities | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Guarantee Of Registered Securities | In connection with the Pride International acquisition, Valaris and Pride entered into a supplemental indenture to the indenture dated as of July 1, 2004, between Pride and the Bank of New York Mellon, as indenture trustee, providing for, among other matters, the full and unconditional guarantee by Valaris of Pride’s 6.875% unsecured senior notes due 2020 and 7.875% unsecured senior notes due 2040 , which had an aggregate outstanding principal balance of $422.9 million as of June 30, 2019 . The Valaris guarantee provides for the unconditional and irrevocable guarantee of the prompt payment, when due, of any amount owed to the holders of the notes. Valaris is also a full and unconditional guarantor of the 7.2% debentures due 2027 issued by Ensco International Incorporated during 1997, which had an aggregate outstanding principal balance of $150.0 million as of June 30, 2019 . Pride and Ensco International Incorporated are 100% owned subsidiaries of Valaris. All guarantees are unsecured obligations of Valaris 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, 2019 and 2018 ; the unaudited condensed consolidating statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2019 and 2018 ; the condensed consolidating balance sheets as of June 30, 2019 (unaudited) and December 31, 2018 ; and the unaudited condensed consolidating statements of cash flows for the six-month periods ended June 30, 2019 and 2018 , in accordance with Rule 3-10 of Regulation S-X. VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 19.9 $ 36.1 $ — $ 607.9 $ (80.0 ) $ 583.9 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 18.3 31.8 — 530.2 (80.0 ) 500.3 Loss on impairment — — — 2.5 — 2.5 Depreciation — 4.0 — 153.9 — 157.9 General and administrative 46.4 .1 — 34.7 — 81.2 Total operating expenses 64.7 35.9 — 721.3 (80.0 ) 741.9 EQUITY IN EARNINGS OF ARO — — — .6 — .6 OPERATING INCOME (LOSS) (44.8 ) .2 — (112.8 ) — (157.4 ) OTHER INCOME (EXPENSE), NET 694.9 (15.6 ) (20.3 ) (66.0 ) 4.3 597.3 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 650.1 (15.4 ) (20.3 ) (178.8 ) 4.3 439.9 INCOME TAX PROVISION — 12.4 — 20.2 — 32.6 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (244.6 ) 43.2 27.0 — 174.4 — NET INCOME (LOSS) 405.5 15.4 6.7 (199.0 ) 178.7 407.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (1.8 ) — (1.8 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 405.5 $ 15.4 $ 6.7 $ (200.8 ) $ 178.7 $ 405.5 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 12.3 $ 39.8 $ — $ 484.3 $ (77.9 ) $ 458.5 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 13.0 36.2 — 373.0 (77.9 ) 344.3 Depreciation — 3.5 — 117.2 — 120.7 General and administrative 10.3 .1 — 15.7 — 26.1 OPERATING LOSS (11.0 ) — — (21.6 ) — (32.6 ) OTHER EXPENSE, NET (5.1 ) (40.5 ) (19.7 ) (23.5 ) 4.0 (84.8 ) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (16.1 ) (40.5 ) (19.7 ) (45.1 ) 4.0 (117.4 ) INCOME TAX PROVISION — 18.6 — 6.1 — 24.7 DISCONTINUED OPERATIONS, NET — — — (8.0 ) — (8.0 ) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (134.9 ) 28.7 22.6 — 83.6 — NET INCOME (LOSS) (151.0 ) (30.4 ) 2.9 (59.2 ) 87.6 (150.1 ) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.9 ) — (.9 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (151.0 ) $ (30.4 ) $ 2.9 $ (60.1 ) $ 87.6 $ (151.0 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 31.3 $ 75.6 $ — $ 1,038.3 $ (155.4 ) $ 989.8 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 30.0 67.5 — 890.8 (155.4 ) 832.9 Loss on impairment — — — 2.5 — 2.5 Depreciation — 7.7 — 275.2 — 282.9 General and administrative 61.3 .2 — 49.3 — 110.8 Total operating expenses 91.3 75.4 — 1,217.8 (155.4 ) 1,229.1 EQUITY IN EARNINGS OF ARO — — — .6 — .6 OPERATING INCOME (LOSS) (60.0 ) 0.2 — (178.9 ) — (238.7 ) OTHER INCOME (EXPENSE), NET 678.8 (31.0 ) (40.8 ) (93.3 ) 8.4 522.1 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 618.8 (30.8 ) (40.8 ) (272.2 ) 8.4 283.4 INCOME TAX PROVISION — 29.0 — 35.1 — 64.1 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (403.7 ) 75.3 53.1 — 275.3 — NET INCOME (LOSS) 215.1 15.5 12.3 (307.3 ) 283.7 219.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (4.2 ) — (4.2 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 215.1 $ 15.5 $ 12.3 $ (311.5 ) $ 283.7 $ 215.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 24.6 $ 80.1 $ — $ 927.8 $ (157.0 ) $ 875.5 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 26.4 72.8 — 727.3 (157.0 ) 669.5 Depreciation — 7.0 — 228.9 — 235.9 General and administrative 20.5 .3 — 33.2 — 54.0 OPERATING LOSS (22.3 ) — — (61.6 ) — (83.9 ) OTHER INCOME (EXPENSE), NET 0.5 (68.5 ) (50.0 ) (56.9 ) 19.4 (155.5 ) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (21.8 ) (68.5 ) (50.0 ) (118.5 ) 19.4 (239.4 ) INCOME TAX PROVISION — 22.9 — 20.2 — 43.1 DISCONTINUED OPERATIONS, NET — — — (8.1 ) — (8.1 ) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (269.3 ) 49.5 46.0 — 173.8 — NET LOSS (291.1 ) (41.9 ) (4.0 ) (146.8 ) 193.2 (290.6 ) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.5 ) — (.5 ) NET LOSS ATTRIBUTABLE TO VALARIS $ (291.1 ) $ (41.9 ) $ (4.0 ) $ (147.3 ) $ 193.2 $ (291.1 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ 405.5 $ 15.4 $ 6.7 $ (199.0 ) $ 178.7 $ 407.3 OTHER COMPREHENSIVE INCOME, NET Net change in derivative fair value — (1.6 ) — — — (1.6 ) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 1.8 — — — 1.8 NET OTHER COMPREHENSIVE INCOME — .2 — — — .2 COMPREHENSIVE INCOME (LOSS) 405.5 15.6 6.7 (199.0 ) 178.7 407.5 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (1.8 ) — (1.8 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 405.5 $ 15.6 $ 6.7 $ (200.8 ) $ 178.7 $ 405.7 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ (151.0 ) $ (30.4 ) $ 2.9 $ (59.2 ) $ 87.6 $ (150.1 ) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (7.6 ) — — — (7.6 ) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — (.7 ) — — — (.7 ) Other — — — (.2 ) — (.2 ) NET OTHER COMPREHENSIVE LOSS — (8.3 ) — (.2 ) — (8.5 ) COMPREHENSIVE INCOME (LOSS) (151.0 ) (38.7 ) 2.9 (59.4 ) 87.6 (158.6 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.9 ) — (.9 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (151.0 ) $ (38.7 ) $ 2.9 $ (60.3 ) $ 87.6 $ (159.5 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ 215.1 $ 15.5 $ 12.3 $ (307.3 ) $ 283.7 $ 219.3 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — (1.6 ) — — — (1.6 ) Reclassification of net gains on derivative instruments from other comprehensive loss to net loss — 3.4 — — — 3.4 Other — — — (.1 ) — (.1 ) NET OTHER COMPREHENSIVE INCOME (LOSS) — 1.8 — (.1 ) — 1.7 COMPREHENSIVE INCOME (LOSS) 215.1 17.3 12.3 (307.4 ) 283.7 221.0 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (4.2 ) — (4.2 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 215.1 $ 17.3 $ 12.3 $ (311.6 ) $ 283.7 $ 216.8 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (291.1 ) $ (41.9 ) $ (4.0 ) $ (146.8 ) $ 193.2 $ (290.6 ) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (5.7 ) — — — (5.7 ) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — (2.9 ) — — — (2.9 ) Other — — — (.3 ) — (.3 ) NET OTHER COMPREHENSIVE LOSS — (8.6 ) — (.3 ) — (8.9 ) COMPREHENSIVE LOSS (291.1 ) (50.5 ) (4.0 ) (147.1 ) 193.2 (299.5 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.5 ) — (.5 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (291.1 ) $ (50.5 ) $ (4.0 ) $ (147.6 ) $ 193.2 $ (300.0 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 481.7 $ — $ 2.7 $ 474.7 $ — $ 959.1 Short-term investments 135.0 — — — — 135.0 Accounts receivable, net 4.4 23.4 — 600.9 — 628.7 Accounts receivable from affiliates 2,008.3 110.0 1.4 76.5 (2,196.2 ) — Other — 11.5 — 488.2 — 499.7 Total current assets 2,629.4 144.9 4.1 1,640.3 (2,196.2 ) 2,222.5 PROPERTY AND EQUIPMENT, AT COST 1.8 104.7 — 18,366.3 — 18,472.8 Less accumulated depreciation 1.8 75.1 — 2,940.2 — 3,017.1 Property and equipment, net — 29.6 — 15,426.1 — 15,455.7 LONG-TERM NOTES RECEIVABLE FROM ARO — — — 453.1 — 453.1 INVESTMENT IN ARO — — — 139.4 — 139.4 DUE FROM AFFILIATES 2,416.3 — 61.1 2,865.3 (5,342.7 ) — INVESTMENTS IN AFFILIATES 10,259.5 3,789.0 1,253.0 — (15,301.5 ) — OTHER ASSETS 10.3 — — 159.1 — 169.4 $ 15,315.5 $ 3,963.5 $ 1,318.2 $ 20,683.3 $ (22,840.4 ) $ 18,440.1 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 105.6 $ 14.9 $ 12.7 $ 640.3 $ — $ 773.5 Accounts payable to affiliates 34.5 71.6 27.6 2,062.5 (2,196.2 ) — Current maturities of long-term debt $ 691.9 $ 37.7 $ — $ 395.7 $ — $ 1,125.3 Total current liabilities 832.0 124.2 40.3 3,098.5 (2,196.2 ) 1,898.8 DUE TO AFFILIATES 1,781.6 1,036.3 1,357.7 1,167.1 (5,342.7 ) — LONG-TERM DEBT 2,988.2 111.6 500.3 2,420.0 — 6,020.1 OTHER LIABILITIES (8.4 ) 79.0 — 728.4 — 799.0 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 9,722.1 2,612.4 (580.1 ) 13,267.7 (15,301.5 ) 9,720.6 NONCONTROLLING INTERESTS — — — 1.6 — 1.6 Total equity (deficit) 9,722.1 2,612.4 (580.1 ) 13,269.3 (15,301.5 ) 9,722.2 $ 15,315.5 $ 3,963.5 $ 1,318.2 $ 20,683.3 $ (22,840.4 ) $ 18,440.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 199.8 $ — $ 2.7 $ 72.6 $ — $ 275.1 Short-term investments 329.0 — — — — $ 329.0 Accounts receivable, net 7.3 25.4 — 312.0 — 344.7 Accounts receivable from affiliates 1,861.2 171.4 — 131.7 (2,164.3 ) — Other .6 6.0 — 354.3 — 360.9 Total current assets 2,397.9 202.8 2.7 870.6 (2,164.3 ) 1,309.7 PROPERTY AND EQUIPMENT, AT COST 1.8 125.2 — 15,390.0 — 15,517.0 Less accumulated depreciation 1.8 91.3 — 2,807.7 — 2,900.8 Property and equipment, net — 33.9 — 12,582.3 — 12,616.2 DUE FROM AFFILIATES 2,413.8 234.5 125.0 2,715.1 (5,488.4 ) — INVESTMENTS IN AFFILIATES 8,522.6 3,713.7 1,199.9 — (13,436.2 ) — OTHER ASSETS 8.1 — — 89.7 — 97.8 $ 13,342.4 $ 4,184.9 $ 1,327.6 $ 16,257.7 $ (21,088.9 ) $ 14,023.7 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 85.3 $ 32.0 $ 12.7 $ 398.5 $ — $ 528.5 Accounts payable to affiliates 59.7 139.5 38.2 1,926.9 (2,164.3 ) — Total current liabilities 145.0 171.5 50.9 2,325.4 (2,164.3 ) 528.5 DUE TO AFFILIATES 1,432.0 1,226.9 1,366.5 1,463.0 (5,488.4 ) — LONG-TERM DEBT 3,676.5 149.3 502.6 682.0 — 5,010.4 OTHER LIABILITIES 0.1 64.3 — 331.6 — 396.0 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 8,088.8 2,572.9 (592.4 ) 11,458.3 (13,436.2 ) 8,091.4 NONCONTROLLING INTERESTS — — — (2.6 ) — (2.6 ) Total equity (deficit) 8,088.8 2,572.9 (592.4 ) 11,455.7 (13,436.2 ) 8,088.8 $ 13,342.4 $ 4,184.9 $ 1,327.6 $ 16,257.7 $ (21,088.9 ) $ 14,023.7 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING ACTIVITIES Net cash used in operating activities of continuing operations $ (79.9 ) $ (117.5 ) $ (68.6 ) $ (27.4 ) $ — $ (293.4 ) INVESTING ACTIVITIES Rowan cash acquired — — — 931.9 — 931.9 Maturities of short-term investments 339.0 — — — — 339.0 Purchases of short-term investments (145.0 ) — — — (145.0 ) Additions to property and equipment — — — (134.8 ) — (134.8 ) Other 2.5 — — 2.0 — 4.5 Net cash provided by investing activities of continuing operations 196.5 — — 799.1 — 995.6 FINANCING ACTIVITIES Repurchase of common shares (4.2 ) — — — — (4.2 ) Cash dividends paid (4.5 ) — — — — (4.5 ) Debt solicitation fees — — — (8.7 ) — (8.7 ) Other (0.5 ) — — — (0.5 ) Advances from (to) affiliates 174.5 117.5 68.6 (360.6 ) — — Net cash provided by (used in) financing activities 165.3 117.5 68.6 (369.3 ) — (17.9 ) Net cash provided by discontinued operations — — — — — — Effect of exchange rate changes on cash and cash equivalents — — — (.3 ) (.3 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 281.9 — — 402.1 — 684.0 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 199.8 — 2.7 72.6 — 275.1 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 481.7 $ — $ 2.7 $ 474.7 $ — $ 959.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING ACTIVITIES Net cash provided by (used in) operating activities of continuing operations $ 28.3 $ (87.8 ) $ (56.6 ) $ 98.1 $ — $ (18.0 ) INVESTING ACTIVITIES Maturities of short-term investments 599.0 — — — — 599.0 Purchases of short-term investments (414.0 ) — — — — (414.0 ) Additions to property and equipment — — — (331.9 ) — (331.9 ) Sale of affiliate debt 479.0 — — — (479.0 ) — Purchase of affiliate debt (552.5 ) — — — 552.5 — Other — — — 2.9 — 2.9 Net cash provided by (used in) investing activities of continuing operations 111.5 — — (329.0 ) 73.5 (144.0 ) FINANCING ACTIVITIES Proceeds from issuance of senior notes 1,000.0 — — — — 1,000.0 Reduction of long-term borrowings (159.9 ) — (537.8 ) — (73.5 ) (771.2 ) Cash dividends paid (9.0 ) — — — — (9.0 ) Debt issuance costs (17.0 ) — — — — (17.0 ) Repurchase of common shares (2.0 ) — — — — (2.0 ) Advances from affiliates (831.5 ) 87.8 584.9 158.8 — — Other — — — (0.5 ) — (0.5 ) Net cash provided by (used in) financing activities (19.4 ) 87.8 47.1 158.3 (73.5 ) 200.3 Net cash provided by discontinued operations — — — 2.5 — 2.5 Effect of exchange rate changes on cash and cash equivalents — — — (.7 ) — (.7 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 120.4 — (9.5 ) (70.8 ) — 40.1 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 185.2 — 25.6 234.6 — 445.4 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 305.6 $ — $ 16.1 $ 163.8 $ — $ 485.5 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Unaudited Condensed Consolidated Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently adopted accounting standards Derivatives and Hedging - In August 2017, the FASB issued Update 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("Update 2017-12"), which makes more hedging strategies eligible for hedge accounting, amends presentation and disclosure requirements and changes how companies assess effectiveness, including the elimination of separate measurement and recognition of ineffectiveness on designated hedging instruments. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We adopted Updated 2017-12 effective January 1, 2019. As a result, beginning on the effective date, we will no longer separately measure and recognize ineffectiveness on our designated cash flow hedges. Update 2017-02 requires a modified retrospective adoption approach whereby amounts previously recorded to earnings for hedge ineffectiveness on hedging relationships that exist as of the adoption date are recorded as a cumulative effect adjustment to opening retained earnings. As of our adoption date, we had no amounts previously recorded for ineffectiveness for hedging relationships that existed as of our adoption date and therefore no cumulative effect adjustment to retained earnings was recorded. Leases - During 2016, the FASB issued Update 2016-02, Leases (Topic 842) ("Update 2016-02"), which requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key qualitative and quantitative information about the entity's leasing arrangements. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. During our evaluation of Update 2016-02, we concluded that our drilling contracts contain a lease component. In July 2018, the FASB issued Accounting Standard Update 2018-11, Leases (Topic 842), Targeted Improvements, which (1) provided for a new transition method whereby entities could elect to adopt the Update using a prospective with cumulative catch-up approach (the "effective date method") and (2) provided lessors with a practical expedient, by class of underlying asset, to not separate lease and non-lease components and account for the combined component under Topic 606 when the non-lease component is the predominant element of the combined component. The lessor practical expedient is limited to circumstances in which the lease, if accounted for separately, would be classified as an operating lease under Topic 842. We adopted ASU 2016-02, effective January 1, 2019, using the effective date method. With respect to our drilling contracts, which contain a lease component, we elected to apply the practical expedient to not separate the lease and non-lease components and account for the combined component under Topic 606. With respect to all of our drilling contracts that existed on the adoption date, we concluded that the criteria to elect the lessor practical expedient had been met. As a result, we will continue to recognize the revenue associated with our drilling contracts under Topic 606. Therefore, we do not expect any change in our revenue recognition patterns or disclosures as a result of our adoption of Topic 842. With respect to leases whereby we are the lessee, we elected several practical expedients afforded under Topic 842. We elected the package of practical expedients permitted under the transition guidance of Topic 842, including the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. We also elected the practical expedient to not separate lease components from non-lease components for all asset classes, with the exception of office space. Furthermore, we also elected the practical expedient that permits entities not to apply the recognition requirements for leases with a term of 12 months or less. Upon adoption of ASU 2016-02 on January 1, 2019, we recognized lease liabilities and right-of-use assets of $64.6 million and $53.7 million , respectively. See Note 14 for additional information. Defined Benefit Plans - In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. We will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2021, with early adoption permitted. Adoption is required to be applied on a retrospective basis to all periods presented. We are in the process of evaluating the impact this amendment will have on our condensed consolidated financial statements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes our contract assets and contract liabilities (in millions): June 30, 2019 December 31, 2018 Current contract assets $ 12.8 $ 4.0 Current contract liabilities (deferred revenue) $ 46.2 $ 56.9 Noncurrent contract liabilities (deferred revenue) $ 14.8 $ 20.5 Significant changes in contract assets and liabilities during the period are as follows (in millions): Contract Assets Contract Liabilities Balance as of December 31, 2018 $ 4.0 $ 77.4 Contract assets acquired and liabilities assumed in the Rowan Transaction 8.4 5.3 Revenue recognized in advance of right to bill customer 2.3 — Increase due to cash received — 34.3 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (40.2 ) Decrease due to amortization of deferred revenue that was added during the period — (15.8 ) Decrease due to transfer to receivables during the period (1.9 ) — Balance as of June 30, 2019 $ 12.8 $ 61.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Expected future amortization of our contract liabilities and deferred costs recorded as of June 30, 2019 is set forth in the table below (in millions): Remaining 2019 2020 2021 2022 and Thereafter Total Amortization of contract liabilities $ 39.0 $ 11.7 $ 7.6 $ 2.7 $ 61.0 Amortization of deferred costs $ 39.7 $ 13.3 $ 2.8 $ 1.4 $ 57.2 |
Rowan Transaction (Tables)
Rowan Transaction (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The provisional amounts for assets acquired and liabilities assumed are based on preliminary estimates of their fair values as of the Transaction Date and are as follows (in millions): Estimated Fair Value Assets: Cash and cash equivalents $ 931.9 Accounts receivable (1) 207.1 Other current assets 101.6 Long-term notes receivable from ARO 454.5 Investment in ARO 138.8 Property and equipment 2,989.8 Other assets 41.7 Liabilities: Accounts payable and accrued liabilities 259.4 Current portion of long-term debt 203.2 Long-term debt 1,910.9 Other liabilities 376.3 Net assets acquired 2,115.6 Less: Transaction consideration (1,402.8 ) Estimated bargain purchase gain $ 712.8 (1) Gross contractual amounts receivable totaled $208.3 million as of the Transaction Date. |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited supplemental pro forma results present consolidated information as if the Rowan Transaction was completed on January 1, 2018. The pro forma results include, among others, (i) the amortization associated with acquired intangible assets and liabilities (ii) a reduction in depreciation expense for adjustments to property and equipment (iii) the amortization of premiums and discounts recorded on Rowan's debt (iv) removal of the historical amortization of unrealized gains and losses related to Rowan's pension plans and (v) the amortization of basis differences in assets and liabilities of ARO. The pro forma results do not include any potential synergies or non-recurring charges that may result directly from the Rowan Transaction. (in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2019 (1) 2018 2019 (1) 2018 Revenues $ 599.0 $ 699.8 $ 1,179.5 $ 1,328.0 Net loss $ (264.9 ) $ (172.6 ) $ (596.4 ) $ (373.5 ) Loss per share - basic and diluted $ (1.35 ) $ (0.88 ) $ (3.04 ) $ (1.90 ) (1) Pro forma net loss and loss per share were adjusted to exclude an aggregate of $71.5 million and $ 80.8 million of transaction-related and integration costs incurred for the three-month and six-month periods ended June 30, 2019 , respectively, and the estimated $712.8 million bargain purchase gain. |
Equity Method Investment In A_2
Equity Method Investment In ARO (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following summarizes the total assets and liabilities as reflected in our condensed consolidated balance sheet as well as our maximum exposure to loss related to ARO (in millions). Generally, our maximum exposure to loss is limited to (1) our equity investment in ARO; (2) the outstanding balance on our shareholder notes receivable; and (3) other receivables for services provided to ARO, partially offset by payables for services received. June 30, 2019 Total assets $ 667.6 Less: total liabilities 2.8 Maximum exposure to loss $ 664.8 Summarized financial information for ARO is as follows (in millions): April 11 - June 30, 2019 Revenues $ 123.8 Operating expenses Contract drilling (exclusive of depreciation) 78.9 Depreciation 12.4 General and administrative 5.3 Operating income 27.2 Other expense, net 8.7 Provision for income taxes 1.7 Net income $ 16.8 June 30, 2019 Current assets $ 434.9 Non-current assets 898.6 Total assets $ 1,333.5 Current liabilities $ 227.4 Non-current liabilities 1,030.6 Total liabilities $ 1,258.0 Equity in Earnings of ARO As a result of the Rowan Transaction, we recorded our equity method investment in ARO at its estimated fair value on the Transaction Date. Additionally, we computed the difference between the fair value of ARO's net assets and the carrying value of those net assets in ARO's GAAP financial statements ("basis differences"). The basis differences primarily relate to ARO's long-lived assets and the recognition of intangible assets associated with certain of ARO's drilling contracts that were determined to have favorable terms as of the Transaction Date. The basis differences are amortized over the remaining life of the assets or liabilities to which they relate and are recognized as an adjustment to the equity in earnings of ARO in our condensed consolidated statements of operations. The amortization of those basis differences are combined with our 50% interest in ARO's net income. A reconciliation of those components is presented below (in millions): April 11 - June 30, 2019 50% interest in ARO net income $ 8.4 Amortization of basis differences (7.8 ) Equity in earnings of ARO $ 0.6 |
Schedule of Related Party Transactions | Revenues recognized by us related to the Lease Agreements, Transition Services Agreement and Secondment Agreement are as follows (in millions): April 11 - June 30, 2019 Lease revenue $ 18.3 Secondment revenue 15.6 Transition Services revenue 5.2 Total revenue from ARO (1) $ 39.1 (1) All of the revenues presented above are included in our Other segment in our segment disclosures. See Note 15 for additional information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following fair value hierarchy table categorizes information regarding our financial assets and liabilities measured at fair value on a recurring basis (in millions): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of June 30, 2019 Supplemental executive retirement plan assets $ 26.2 $ — $ — $ 26.2 Total financial assets $ 26.2 $ — $ — $ 26.2 Derivatives, net $ — $ (4.3 ) $ — $ (4.3 ) Total financial liabilities $ — $ (4.3 ) $ — $ (4.3 ) As of December 31, 2018 Supplemental executive retirement plan assets $ 27.2 $ — $ — $ 27.2 Total financial assets $ 27.2 $ — $ — $ 27.2 Derivatives, net $ — $ (10.7 ) $ — $ (10.7 ) Total financial liabilities $ — $ (10.7 ) $ — $ (10.7 ) |
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments | The carrying values and estimated fair values of our long-term debt instruments were as follows (in millions): June 30, December 31, Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 7.875% Senior notes due 2019 (2) $ 202.0 $ 201.9 $ — $ — 6.875% Senior notes due 2020 126.2 122.4 127.5 121.6 4.70% Senior notes due 2021 113.0 105.8 112.7 101.8 4.875% Senior notes due 2022 (2) 595.0 572.6 — — 3.00% Exchangeable senior notes due 2024 (1) 682.8 666.4 666.8 575.5 4.50% Senior notes due 2024 620.1 467.7 619.8 405.2 4.75% Senior notes due 2024 (2) 339.5 304.0 — — 8.00% Senior notes due 2024 336.5 282.2 337.0 273.7 7.375% Senior notes due 2025 (2) 452.5 388.3 — — 5.20% Senior notes due 2025 664.8 494.1 664.4 443.9 7.75% Senior notes due 2026 986.1 750.7 985.0 725.5 7.20% Debentures due 2027 149.4 114.8 149.3 109.1 7.875% Senior notes due 2040 374.2 205.9 375.0 223.2 5.40% Senior notes due 2042 (2) 261.9 237.9 — — 5.75% Senior notes due 2044 973.4 585.9 972.9 566.3 5.85% Senior notes due 2044 (2) 268.0 233.8 — — Total debt $ 7,145.4 $ 5,734.4 $ 5,010.4 $ 3,545.8 Less: current maturities 1,125.3 921.2 — — Total long-term debt $ 6,020.1 $ 4,813.2 $ 5,010.4 $ 3,545.8 (1) Our exchangeable senior notes due 2024 (the "2024 Convertible Notes") were issued with a conversion feature. The 2024 Convertible Notes were separated into their liability and equity components on our condensed consolidated balance sheet. The equity component was initially recorded to additional paid-in capital and as a debt discount that will be amortized to interest expense over the life of the instrument. Excluding the unamortized discount, the carrying value of the 2024 Convertible Notes was $837.4 million and $836.3 million as of June 30, 2019 and December 31, 2018 , respectively. (2) These senior notes were assumed by Valaris as a result of the Rowan Transaction. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic pension cost were as follows (in millions): April 11 - June 30, 2019 Service cost (1) $ 0.4 Interest cost (2) 6.5 Expected return on plan assets (2) (8.2 ) Net periodic pension cost $ (1.3 ) (1) Included in contract drilling and general and administrative expense in our condensed consolidated statements of operations. (2) Included in other, net, in our condensed consolidated statements of operations. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivatives At Fair Value | Derivatives recorded at fair value on our condensed consolidated balance sheets consisted of the following (in millions): Derivative Assets Derivative Liabilities June 30, December 31, June 30, December 31, Derivatives Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .3 $ .2 $ 4.4 $ 8.3 Foreign currency forward contracts - non-current (2) — — .3 .4 $ .3 $ .2 $ 4.7 $ 8.7 Derivatives Not Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .8 $ .4 $ .7 $ 2.6 Total $ 1.1 $ .6 $ 5.4 $ 11.3 (1) Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets. (2) Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets. |
Gains And Losses On Derivatives Designated As Cash Flow Hedges | Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our condensed consolidated statements of operations and comprehensive income (loss) were as follows (in millions): Three Months Ended June 30, 2019 and 2018 Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) (1) Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (2) 2019 2018 2019 2018 2019 2018 Foreign currency forward contracts (4) $ (1.6 ) $ (7.6 ) $ 1.8 $ (.7 ) $ — $ (1.0 ) Total $ (1.6 ) $ (7.6 ) $ 1.8 $ (.7 ) $ — $ (1.0 ) Six Months Ended June 30, 2019 and 2018 Gain (Loss) Recognized in Other Comprehensive Income (Loss) ("OCI") (Effective Portion) (Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) (1) Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (2) 2019 2018 2019 2018 2019 2018 Interest rate lock contracts (3) $ — $ — $ .1 $ .1 $ — $ — Foreign currency forward contracts (5) (1.6 ) (5.7 ) 3.3 (3.0 ) — (1.2 ) Total $ (1.6 ) $ (5.7 ) $ 3.4 $ (2.9 ) $ — $ (1.2 ) (1) Changes in the fair value of cash flow hedge derivatives are recorded in AOCI. Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction. (2) Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our condensed consolidated statements of operations. As a result of our adoption of Update 2017-12, which we adopted effective January 1, 2019, ineffectiveness is no longer separately measured and recognized. See additional information in Note 1 . (3) Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net, in our condensed consolidated statements of operations. (4) During the second quarter of 2019, $2.0 million of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the prior year quarter, $500,000 of gains were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. (5) During the six-month period ended June 30, 2019 , $3.7 million of losses were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the six-month period ended June 30, 2018 , $2.6 million of gains were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Reconciliation Of Income From Continuing Operations [Table Text Block] | Loss from continuing operations attributable to Valaris for the three-month and six-month periods ended June 30, 2019 and 2018 was as follows (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations $ 407.3 $ (142.1 ) $ 219.3 $ (282.5 ) Income from continuing operations attributable to noncontrolling interests (1.8 ) (.9 ) (4.2 ) (0.5 ) Income (loss) from continuing operations attributable to Valaris $ 405.5 $ (143.0 ) $ 215.1 $ (283.0 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Net Income Attributable To Ensco Shares | The following table is a reconciliation of income (loss) from continuing operations attributable to Valaris shares used in our basic and diluted EPS computations for the three-month and six-month periods ended June 30, 2019 and 2018 (in millions): Three Months Ended Six Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations attributable to Valaris $ 405.5 $ (143.0 ) $ 215.1 $ (283.0 ) Income from continuing operations allocated to non-vested share awards (1) (12.1 ) (.1 ) (6.3 ) (.2 ) Income (loss) from continuing operations attributable to Valaris shares $ 393.4 $ (143.1 ) $ 208.8 $ (283.2 ) (1) Losses are not allocated to non-vested share awards. Therefore, in periods in which we were in a net loss position, only dividends attributable to our non-vested share awards are included. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Extinguishment of Debt | The following table sets forth the total principal amounts repurchased and purchase price paid in the tender offers (in millions): Aggregate Principal Amount Repurchased Aggregate Repurchase Price (1) 4.50% Senior notes due 2024 $ 320.0 $ 240.0 5.20% Senior notes due 2025 335.5 250.0 7.20% Senior notes due 2027 37.9 29.9 4.75% Senior notes due 2024 79.5 61.2 7.375% Senior notes due 2025 139.2 109.2 8.00% Senior notes due 2024 39.7 33.8 Total $ 951.8 $ 724.1 (1) Excludes accrued interest paid to holders of the repurchased senior notes. |
Shareholders Equity (Tables)
Shareholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Schedule Of Activity In Our Various Shareholders Equity [Table Text Block] | Activity in our various shareholders' equity accounts for the six-month periods ended June 30, 2019 and 2018 were as follows (in millions): Shares Par Value Additional Paid-in Capital Retained Earnings AOCI Treasury Shares Non-controlling Interest BALANCE, December 31, 2018 115.2 $ 46.2 $ 7,225.0 $ 874.2 $ 18.2 $ (72.2 ) $ (2.6 ) Net loss — — — (190.4 ) — — 2.4 Dividends paid ($0.04 per share) — — — (4.5 ) — — — Shares issued under share-based compensation plans, net — — (.1 ) — — .1 — Repurchase of shares — — — — — (2.8 ) — Share-based compensation cost — — 5.3 — — — — Net other comprehensive income — — — — 1.5 — — BALANCE, March 31, 2019 115.2 $ 46.2 $ 7,230.2 $ 679.3 $ 19.7 $ (74.9 ) $ (0.2 ) Net income — — — 405.5 — — 1.8 Equity issuance in connection with the Rowan Transaction 88.0 35.2 1,365.5 — — 2.1 — Shares issued under share-based compensation plans, net 2.6 1.1 (1.1 ) — — (.8 ) — Repurchase of shares — — — — — (1.4 ) — Share-based compensation cost — — 13.8 — — — — Net other comprehensive income — — — — .2 — — BALANCE, June 30, 2019 205.8 $ 82.5 $ 8,608.4 $ 1,084.8 $ 19.9 $ (75.0 ) $ 1.6 Shares Par Value Additional Retained AOCI Treasury Non-controlling BALANCE, December 31, 2017 111.8 $ 44.8 $ 7,195.0 $ 1,532.7 $ 28.6 $ (69.0 ) $ (2.1 ) Net loss — — — (140.1 ) — — (.4 ) Dividends paid ($0.04 per share) — — — (4.4 ) — — — Cumulative-effect due to ASU 2018-02 — — — (.8 ) .8 — — Shares issued under share-based compensation plans, net — — (.1 ) — — .1 — Repurchase of shares — — — — — (1.1 ) — Share-based compensation cost — — 7.5 — — — — Net other comprehensive loss — — — — (.4 ) — — BALANCE, March 31, 2018 111.8 $ 44.8 $ 7,202.4 $ 1,387.4 $ 29.0 $ (70.0 ) $ (2.5 ) Net loss — — — (151.0 ) — — .9 Dividends paid ($0.04 per share) — — — (4.4 ) — — — Shares issued under share-based compensation plans, net 3.4 1.4 (.4 ) — — (1.4 ) — Distributions to noncontrolling interests — — — — — — (.7 ) Repurchase of shares — — — — — (.6 ) — Share-based compensation cost — — 7.5 — — — — Net other comprehensive loss — — — — (8.5 ) — — BALANCE, June 30, 2018 115.2 $ 46.2 $ 7,209.5 $ 1,232.0 $ 20.5 $ (72.0 ) $ (2.3 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense are as follows (in millions): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Long-term operating lease cost $ 7.0 $ 13.2 Short-term operating lease cost 2.2 5.3 Sublease income (.4 ) (.7 ) Total operating lease cost $ 8.8 $ 17.8 |
Assets and Liabilities, Lessee [Table Text Block] | Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): June 30, 2019 Operating lease right-of-use assets (1) $ 57.1 Current lease liability (1) $ 21.5 Long-term lease liability (1) 48.6 Total operating lease liabilities $ 70.1 Weighted-average remaining lease term (in years) 5.4 Weighted-average discount rate (2) 8.00 % (1) The right-of-use assets include $12.2 million assumed in the Rowan Transaction. The current and long-term lease liabilities include $3.9 million and $10.6 million , respectively, assumed in the Rowan Transaction. (2) Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities as of June 30, 2019 were as follows (in millions): Year Ending December 31, Total 2019 (excluding the six months ended June 30, 2019) $ 15.3 2020 19.5 2021 10.8 2022 9.9 2023 10.2 Thereafter 22.1 Total lease payments $ 87.8 Less imputed interest (17.7 ) Total $ 70.1 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Schedule Of Segment Reporting Information | Three Months Ended June 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 295.6 $ 229.2 $ 123.8 $ 59.1 $ (123.8 ) $ 583.9 Operating expenses Contract drilling (exclusive of depreciation) 249.2 212.2 78.9 38.9 (78.9 ) 500.3 Loss on impairment — — — — 2.5 2.5 Depreciation 98.4 55.5 12.4 — (8.4 ) 157.9 General and administrative — — 5.3 — 75.9 81.2 Equity in earnings of ARO — — — — 0.6 0.6 Operating income (loss) $ (52.0 ) $ (38.5 ) $ 27.2 $ 20.2 $ (114.3 ) $ (157.4 ) Property and equipment, net $ 10,364.7 $ 5,055.6 $ 656.5 $ — $ (621.1 ) $ 15,455.7 Three Months Ended June 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 284.9 $ 158.7 $ — $ 14.9 $ — $ 458.5 Operating expenses — Contract drilling (exclusive of depreciation) 203.7 126.8 — 13.8 — 344.3 Depreciation 80.8 36.5 — — 3.4 120.7 General and administrative — — — — 26.1 26.1 Operating income (loss) $ 0.4 $ (4.6 ) $ — $ 1.1 $ (29.5 ) $ (32.6 ) Property and equipment, net $ 9,574.9 $ 3,167.0 $ — $ — $ 42.0 $ 12,783.9 Six Months Ended June 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 528.3 $ 386.2 $ 123.8 $ 75.3 $ (123.8 ) $ 989.8 Operating expenses — Contract drilling (exclusive of depreciation) 431.0 347.6 78.9 54.3 (78.9 ) 832.9 Loss on impairment — — — — 2.5 2.5 Depreciation 183.2 92.4 12.4 — (5.1 ) 282.9 General and administrative — — 5.3 — 105.5 110.8 Equity in earnings of ARO — — — — 0.6 0.6 Operating income (loss) $ (85.9 ) $ (53.8 ) $ 27.2 $ 21.0 $ (147.2 ) $ (238.7 ) Property and equipment, net $ 10,364.7 $ 5,055.6 $ 656.5 $ — $ (621.1 ) $ 15,455.7 Six Months Ended June 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 543.9 $ 302.1 $ — $ 29.5 $ — $ 875.5 Operating expenses — Contract drilling (exclusive of depreciation) 388.8 253.7 — 27.0 — 669.5 Depreciation 156.1 73.0 — — 6.8 235.9 General and administrative — — — — 54.0 54.0 Operating income (loss) $ (1.0 ) $ (24.6 ) $ — $ 2.5 $ (60.8 ) (83.9 ) Property and equipment, net $ 9,574.9 $ 3,167.0 $ — $ — $ 42.0 12,783.9 |
Schedule Of Geographic Distribution Of Rigs By Segment | As of June 30, 2019 , the geographic distribution of our and ARO's drilling rigs was as follows: Floaters Jackups Other (1) Total Valaris ARO North & South America 12 9 — 21 — Europe & Mediterranean 5 17 — 22 — Middle East & Africa (2) 5 11 9 25 7 Asia & Pacific Rim 4 7 — 11 — Asia & Pacific Rim (under construction) 2 — — 2 — Total 28 44 9 81 7 (1) The rigs included in the "Other" segment represent the nine rigs leased to ARO (two of which are expected to commence drilling operations during the third quarter of 2019). See Note 4 for additional information. (2) The number of Middle East & Africa Jackup drilling rigs excludes one older Rowan jackup rig marked for retirement. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Financial Information [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net, consisted of the following (in millions): June 30, December 31, Trade $ 568.3 $ 301.7 Other 68.9 46.4 637.2 348.1 Allowance for doubtful accounts (8.5 ) (3.4 ) $ 628.7 $ 344.7 |
Other Current Assets | Other current assets consisted of the following (in millions): June 30, December 31, Materials and supplies $ 360.7 $ 268.1 Prepaid taxes 58.3 35.0 Deferred costs 47.5 23.5 Prepaid expenses 16.2 15.2 Other 17.0 19.1 $ 499.7 $ 360.9 |
Other Assets, Net | Other assets consisted of the following (in millions): June 30, December 31, Right-of-use assets $ 57.1 $ — Deferred tax assets 31.4 29.4 Supplemental executive retirement plan assets 26.2 27.2 Deferred costs 19.9 21.5 Intangible assets 14.9 — Other 19.9 19.7 $ 169.4 $ 97.8 |
Accrued Liabilities And Other | Accrued liabilities and other consisted of the following (in millions): June 30, December 31, Accrued interest $ 136.9 $ 100.6 Personnel costs 101.2 82.5 Income and other taxes payable 53.7 36.9 Deferred revenue 46.2 56.9 Accrued rig holding costs 26.5 14.3 Lease liabilities 21.5 — Pension and other post-retirement benefits 19.7 — Derivative liabilities 5.1 10.9 Other 27.5 15.9 $ 438.3 $ 318.0 |
Other Liabilities | Other liabilities consisted of the following (in millions): June 30, December 31, Unrecognized tax benefits (inclusive of interest and penalties) $ 276.2 $ 177.0 Pension and other post-retirement benefits 214.4 — Deferred tax liabilities 106.5 70.7 Intangible liabilities 53.8 53.5 Lease liabilities 48.6 — Supplemental executive retirement plan liabilities 26.9 28.1 Personnel costs 22.7 25.1 Deferred revenue 14.8 20.5 Deferred rent — 11.7 Other 35.1 9.4 $ 799.0 $ 396.0 |
Accumulated other comprehensive income | Accumulated other comprehensive income consisted of the following (in millions): June 30, December 31, Derivative instruments $ 14.4 $ 12.6 Currency translation adjustment 7.3 7.3 Other (1.8 ) (1.7 ) $ 19.9 $ 18.2 |
Schedule of Revenue by Major Customers by Reporting Segments | Consolidated revenues by customer for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Total (1) 13 % 13 % 15 % 14 % Saudi Aramco (2) 9 % 9 % 10 % 9 % BP (3) 9 % 5 % 8 % 8 % Petrobras (4) 4 % 10 % 5 % 11 % Other 65 % 63 % 62 % 58 % 100 % 100 % 100 % 100 % (1) During the three-month and six-month periods ended June 30, 2019 , 90% and 95% of revenues provided by Total were attributable to the Floaters segment and the remainder was attributable to the Jackup segments. During the three-month and six-month periods ended June 30, 2018 , all revenues were attributable to our Floaters segment. (2) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues were attributable to our Jackups segment. (3) During the three-month period ended June 30, 2019 , 44% of the revenues provided by BP were attributable to our Jackups segment, 19% of the revenues were attributable to our Floaters segment and the remaining was attributable to our managed rigs. During the three-month period ended June 30, 2018 , 28% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our managed rigs. During the six-month period ended June 30, 2019 , 39% of the revenues provided by BP were attributable to our Jackups segment, 13% of the revenues were attributable to our Floaters segment and the remainder was attributable to our managed rigs. During the six-month period ended June 30, 2018 , 43% of the revenues provided by BP were attributable to our Floaters segment, 15% of the revenues were attributable to our Jackups segment and the remainder was attributable to our managed rigs. (4) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues were attributable to our Floaters segment. |
Revenue from External Customers by Geographic Areas | Consolidated revenues by region for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 U.S. Gulf of Mexico (1) $ 93.4 $ 59.5 $ 148.1 $ 113.1 Saudi Arabia (2) 83.2 39.5 136.6 82.7 Australia (3) 70.0 80.4 137.3 132.6 Angola (4) 68.1 72.2 138.7 133.3 United Kingdom (5) 54.2 53.7 97.6 100.3 Brazil (6) 25.1 46.1 47.1 96.4 Other 189.9 107.1 284.4 217.1 $ 583.9 $ 458.5 $ 989.8 $ 875.5 (1) During the three-month period ended June 30, 2019 , 39% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 39% were attributable to our Jackups segment, and the remaining revenues were attributable to our managed rigs. During the three-month period ended June 30, 2018 , 36% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 39% were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs. During the six-month period ended June 30, 2019 , 34% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 41% were attributable to our Jackups segment, and the remaining revenues were attributable to our managed rigs. During the six-month period ended June 30, 2018 , our Floaters and Jackups segments each earned 37% of the revenues in the U.S. Gulf of Mexico, and the remaining revenues were attributable to our managed rigs. (2) During the three-month and six-month periods ended June 30, 2019 , 60% and 76% of the revenues earned in Saudi Arabia, respectively, were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. During the three-month and six-month period ended June 30, 2018 , all revenues earned in Saudi Arabia were attributable to our Jackups segment. (3) During the three-month periods ended June 30, 2019 and 2018 , 94% and 95% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2019 and 2018 , 94% and 97% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. (4) During the three-month periods ended June 30, 2019 and 2018 , 90% and 84% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2019 and 2018 , 88% and 90% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. (5) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues earned in the United Kingdom were attributable to our Jackups segment. (6) During the three-month and six-month periods ended June 30, 2019 and 2018 , all revenues earned in Brazil were attributable to our Floaters segment. |
Guarantee Of Registered Secur_2
Guarantee Of Registered Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Condensed Consolidating Statements Of Operations | VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 19.9 $ 36.1 $ — $ 607.9 $ (80.0 ) $ 583.9 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 18.3 31.8 — 530.2 (80.0 ) 500.3 Loss on impairment — — — 2.5 — 2.5 Depreciation — 4.0 — 153.9 — 157.9 General and administrative 46.4 .1 — 34.7 — 81.2 Total operating expenses 64.7 35.9 — 721.3 (80.0 ) 741.9 EQUITY IN EARNINGS OF ARO — — — .6 — .6 OPERATING INCOME (LOSS) (44.8 ) .2 — (112.8 ) — (157.4 ) OTHER INCOME (EXPENSE), NET 694.9 (15.6 ) (20.3 ) (66.0 ) 4.3 597.3 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 650.1 (15.4 ) (20.3 ) (178.8 ) 4.3 439.9 INCOME TAX PROVISION — 12.4 — 20.2 — 32.6 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (244.6 ) 43.2 27.0 — 174.4 — NET INCOME (LOSS) 405.5 15.4 6.7 (199.0 ) 178.7 407.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (1.8 ) — (1.8 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 405.5 $ 15.4 $ 6.7 $ (200.8 ) $ 178.7 $ 405.5 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 12.3 $ 39.8 $ — $ 484.3 $ (77.9 ) $ 458.5 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 13.0 36.2 — 373.0 (77.9 ) 344.3 Depreciation — 3.5 — 117.2 — 120.7 General and administrative 10.3 .1 — 15.7 — 26.1 OPERATING LOSS (11.0 ) — — (21.6 ) — (32.6 ) OTHER EXPENSE, NET (5.1 ) (40.5 ) (19.7 ) (23.5 ) 4.0 (84.8 ) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (16.1 ) (40.5 ) (19.7 ) (45.1 ) 4.0 (117.4 ) INCOME TAX PROVISION — 18.6 — 6.1 — 24.7 DISCONTINUED OPERATIONS, NET — — — (8.0 ) — (8.0 ) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (134.9 ) 28.7 22.6 — 83.6 — NET INCOME (LOSS) (151.0 ) (30.4 ) 2.9 (59.2 ) 87.6 (150.1 ) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.9 ) — (.9 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (151.0 ) $ (30.4 ) $ 2.9 $ (60.1 ) $ 87.6 $ (151.0 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 31.3 $ 75.6 $ — $ 1,038.3 $ (155.4 ) $ 989.8 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 30.0 67.5 — 890.8 (155.4 ) 832.9 Loss on impairment — — — 2.5 — 2.5 Depreciation — 7.7 — 275.2 — 282.9 General and administrative 61.3 .2 — 49.3 — 110.8 Total operating expenses 91.3 75.4 — 1,217.8 (155.4 ) 1,229.1 EQUITY IN EARNINGS OF ARO — — — .6 — .6 OPERATING INCOME (LOSS) (60.0 ) 0.2 — (178.9 ) — (238.7 ) OTHER INCOME (EXPENSE), NET 678.8 (31.0 ) (40.8 ) (93.3 ) 8.4 522.1 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 618.8 (30.8 ) (40.8 ) (272.2 ) 8.4 283.4 INCOME TAX PROVISION — 29.0 — 35.1 — 64.1 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (403.7 ) 75.3 53.1 — 275.3 — NET INCOME (LOSS) 215.1 15.5 12.3 (307.3 ) 283.7 219.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (4.2 ) — (4.2 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 215.1 $ 15.5 $ 12.3 $ (311.5 ) $ 283.7 $ 215.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 24.6 $ 80.1 $ — $ 927.8 $ (157.0 ) $ 875.5 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 26.4 72.8 — 727.3 (157.0 ) 669.5 Depreciation — 7.0 — 228.9 — 235.9 General and administrative 20.5 .3 — 33.2 — 54.0 OPERATING LOSS (22.3 ) — — (61.6 ) — (83.9 ) OTHER INCOME (EXPENSE), NET 0.5 (68.5 ) (50.0 ) (56.9 ) 19.4 (155.5 ) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (21.8 ) (68.5 ) (50.0 ) (118.5 ) 19.4 (239.4 ) INCOME TAX PROVISION — 22.9 — 20.2 — 43.1 DISCONTINUED OPERATIONS, NET — — — (8.1 ) — (8.1 ) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (269.3 ) 49.5 46.0 — 173.8 — NET LOSS (291.1 ) (41.9 ) (4.0 ) (146.8 ) 193.2 (290.6 ) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.5 ) — (.5 ) NET LOSS ATTRIBUTABLE TO VALARIS $ (291.1 ) $ (41.9 ) $ (4.0 ) $ (147.3 ) $ 193.2 $ (291.1 ) |
Condensed Consolidating Statements Of Comprehensive Income | VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ 405.5 $ 15.4 $ 6.7 $ (199.0 ) $ 178.7 $ 407.3 OTHER COMPREHENSIVE INCOME, NET Net change in derivative fair value — (1.6 ) — — — (1.6 ) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 1.8 — — — 1.8 NET OTHER COMPREHENSIVE INCOME — .2 — — — .2 COMPREHENSIVE INCOME (LOSS) 405.5 15.6 6.7 (199.0 ) 178.7 407.5 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (1.8 ) — (1.8 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 405.5 $ 15.6 $ 6.7 $ (200.8 ) $ 178.7 $ 405.7 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ (151.0 ) $ (30.4 ) $ 2.9 $ (59.2 ) $ 87.6 $ (150.1 ) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (7.6 ) — — — (7.6 ) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — (.7 ) — — — (.7 ) Other — — — (.2 ) — (.2 ) NET OTHER COMPREHENSIVE LOSS — (8.3 ) — (.2 ) — (8.5 ) COMPREHENSIVE INCOME (LOSS) (151.0 ) (38.7 ) 2.9 (59.4 ) 87.6 (158.6 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.9 ) — (.9 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (151.0 ) $ (38.7 ) $ 2.9 $ (60.3 ) $ 87.6 $ (159.5 ) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET INCOME (LOSS) $ 215.1 $ 15.5 $ 12.3 $ (307.3 ) $ 283.7 $ 219.3 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — (1.6 ) — — — (1.6 ) Reclassification of net gains on derivative instruments from other comprehensive loss to net loss — 3.4 — — — 3.4 Other — — — (.1 ) — (.1 ) NET OTHER COMPREHENSIVE INCOME (LOSS) — 1.8 — (.1 ) — 1.7 COMPREHENSIVE INCOME (LOSS) 215.1 17.3 12.3 (307.4 ) 283.7 221.0 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (4.2 ) — (4.2 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 215.1 $ 17.3 $ 12.3 $ (311.6 ) $ 283.7 $ 216.8 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (291.1 ) $ (41.9 ) $ (4.0 ) $ (146.8 ) $ 193.2 $ (290.6 ) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (5.7 ) — — — (5.7 ) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — (2.9 ) — — — (2.9 ) Other — — — (.3 ) — (.3 ) NET OTHER COMPREHENSIVE LOSS — (8.6 ) — (.3 ) — (8.9 ) COMPREHENSIVE LOSS (291.1 ) (50.5 ) (4.0 ) (147.1 ) 193.2 (299.5 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (.5 ) — (.5 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (291.1 ) $ (50.5 ) $ (4.0 ) $ (147.6 ) $ 193.2 $ (300.0 ) |
Condensed Consolidating Balance Sheets | VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 481.7 $ — $ 2.7 $ 474.7 $ — $ 959.1 Short-term investments 135.0 — — — — 135.0 Accounts receivable, net 4.4 23.4 — 600.9 — 628.7 Accounts receivable from affiliates 2,008.3 110.0 1.4 76.5 (2,196.2 ) — Other — 11.5 — 488.2 — 499.7 Total current assets 2,629.4 144.9 4.1 1,640.3 (2,196.2 ) 2,222.5 PROPERTY AND EQUIPMENT, AT COST 1.8 104.7 — 18,366.3 — 18,472.8 Less accumulated depreciation 1.8 75.1 — 2,940.2 — 3,017.1 Property and equipment, net — 29.6 — 15,426.1 — 15,455.7 LONG-TERM NOTES RECEIVABLE FROM ARO — — — 453.1 — 453.1 INVESTMENT IN ARO — — — 139.4 — 139.4 DUE FROM AFFILIATES 2,416.3 — 61.1 2,865.3 (5,342.7 ) — INVESTMENTS IN AFFILIATES 10,259.5 3,789.0 1,253.0 — (15,301.5 ) — OTHER ASSETS 10.3 — — 159.1 — 169.4 $ 15,315.5 $ 3,963.5 $ 1,318.2 $ 20,683.3 $ (22,840.4 ) $ 18,440.1 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 105.6 $ 14.9 $ 12.7 $ 640.3 $ — $ 773.5 Accounts payable to affiliates 34.5 71.6 27.6 2,062.5 (2,196.2 ) — Current maturities of long-term debt $ 691.9 $ 37.7 $ — $ 395.7 $ — $ 1,125.3 Total current liabilities 832.0 124.2 40.3 3,098.5 (2,196.2 ) 1,898.8 DUE TO AFFILIATES 1,781.6 1,036.3 1,357.7 1,167.1 (5,342.7 ) — LONG-TERM DEBT 2,988.2 111.6 500.3 2,420.0 — 6,020.1 OTHER LIABILITIES (8.4 ) 79.0 — 728.4 — 799.0 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 9,722.1 2,612.4 (580.1 ) 13,267.7 (15,301.5 ) 9,720.6 NONCONTROLLING INTERESTS — — — 1.6 — 1.6 Total equity (deficit) 9,722.1 2,612.4 (580.1 ) 13,269.3 (15,301.5 ) 9,722.2 $ 15,315.5 $ 3,963.5 $ 1,318.2 $ 20,683.3 $ (22,840.4 ) $ 18,440.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 199.8 $ — $ 2.7 $ 72.6 $ — $ 275.1 Short-term investments 329.0 — — — — $ 329.0 Accounts receivable, net 7.3 25.4 — 312.0 — 344.7 Accounts receivable from affiliates 1,861.2 171.4 — 131.7 (2,164.3 ) — Other .6 6.0 — 354.3 — 360.9 Total current assets 2,397.9 202.8 2.7 870.6 (2,164.3 ) 1,309.7 PROPERTY AND EQUIPMENT, AT COST 1.8 125.2 — 15,390.0 — 15,517.0 Less accumulated depreciation 1.8 91.3 — 2,807.7 — 2,900.8 Property and equipment, net — 33.9 — 12,582.3 — 12,616.2 DUE FROM AFFILIATES 2,413.8 234.5 125.0 2,715.1 (5,488.4 ) — INVESTMENTS IN AFFILIATES 8,522.6 3,713.7 1,199.9 — (13,436.2 ) — OTHER ASSETS 8.1 — — 89.7 — 97.8 $ 13,342.4 $ 4,184.9 $ 1,327.6 $ 16,257.7 $ (21,088.9 ) $ 14,023.7 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 85.3 $ 32.0 $ 12.7 $ 398.5 $ — $ 528.5 Accounts payable to affiliates 59.7 139.5 38.2 1,926.9 (2,164.3 ) — Total current liabilities 145.0 171.5 50.9 2,325.4 (2,164.3 ) 528.5 DUE TO AFFILIATES 1,432.0 1,226.9 1,366.5 1,463.0 (5,488.4 ) — LONG-TERM DEBT 3,676.5 149.3 502.6 682.0 — 5,010.4 OTHER LIABILITIES 0.1 64.3 — 331.6 — 396.0 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 8,088.8 2,572.9 (592.4 ) 11,458.3 (13,436.2 ) 8,091.4 NONCONTROLLING INTERESTS — — — (2.6 ) — (2.6 ) Total equity (deficit) 8,088.8 2,572.9 (592.4 ) 11,455.7 (13,436.2 ) 8,088.8 $ 13,342.4 $ 4,184.9 $ 1,327.6 $ 16,257.7 $ (21,088.9 ) $ 14,023.7 |
Condensed Consolidating Statements Of Cash Flows | VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING ACTIVITIES Net cash used in operating activities of continuing operations $ (79.9 ) $ (117.5 ) $ (68.6 ) $ (27.4 ) $ — $ (293.4 ) INVESTING ACTIVITIES Rowan cash acquired — — — 931.9 — 931.9 Maturities of short-term investments 339.0 — — — — 339.0 Purchases of short-term investments (145.0 ) — — — (145.0 ) Additions to property and equipment — — — (134.8 ) — (134.8 ) Other 2.5 — — 2.0 — 4.5 Net cash provided by investing activities of continuing operations 196.5 — — 799.1 — 995.6 FINANCING ACTIVITIES Repurchase of common shares (4.2 ) — — — — (4.2 ) Cash dividends paid (4.5 ) — — — — (4.5 ) Debt solicitation fees — — — (8.7 ) — (8.7 ) Other (0.5 ) — — — (0.5 ) Advances from (to) affiliates 174.5 117.5 68.6 (360.6 ) — — Net cash provided by (used in) financing activities 165.3 117.5 68.6 (369.3 ) — (17.9 ) Net cash provided by discontinued operations — — — — — — Effect of exchange rate changes on cash and cash equivalents — — — (.3 ) (.3 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 281.9 — — 402.1 — 684.0 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 199.8 — 2.7 72.6 — 275.1 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 481.7 $ — $ 2.7 $ 474.7 $ — $ 959.1 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING ACTIVITIES Net cash provided by (used in) operating activities of continuing operations $ 28.3 $ (87.8 ) $ (56.6 ) $ 98.1 $ — $ (18.0 ) INVESTING ACTIVITIES Maturities of short-term investments 599.0 — — — — 599.0 Purchases of short-term investments (414.0 ) — — — — (414.0 ) Additions to property and equipment — — — (331.9 ) — (331.9 ) Sale of affiliate debt 479.0 — — — (479.0 ) — Purchase of affiliate debt (552.5 ) — — — 552.5 — Other — — — 2.9 — 2.9 Net cash provided by (used in) investing activities of continuing operations 111.5 — — (329.0 ) 73.5 (144.0 ) FINANCING ACTIVITIES Proceeds from issuance of senior notes 1,000.0 — — — — 1,000.0 Reduction of long-term borrowings (159.9 ) — (537.8 ) — (73.5 ) (771.2 ) Cash dividends paid (9.0 ) — — — — (9.0 ) Debt issuance costs (17.0 ) — — — — (17.0 ) Repurchase of common shares (2.0 ) — — — — (2.0 ) Advances from affiliates (831.5 ) 87.8 584.9 158.8 — — Other — — — (0.5 ) — (0.5 ) Net cash provided by (used in) financing activities (19.4 ) 87.8 47.1 158.3 (73.5 ) 200.3 Net cash provided by discontinued operations — — — 2.5 — 2.5 Effect of exchange rate changes on cash and cash equivalents — — — (.7 ) — (.7 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 120.4 — (9.5 ) (70.8 ) — 40.1 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 185.2 — 25.6 234.6 — 445.4 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 305.6 $ — $ 16.1 $ 163.8 $ — $ 485.5 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Financial Statements New Accounting Pronouncements or Changes in Accounting Principle (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liability | $ 70.1 | ||
Operating Lease, Right-of-Use Asset | $ 57.1 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liability | $ 64.6 | ||
Operating Lease, Right-of-Use Asset | $ 53.7 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Upfront Rig Mobilizations And Certain Contract Preparation [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 45.1 | $ 45.1 | $ 23.5 | ||
Capitalized Contract Cost, Amortization | 14.7 | $ 9.1 | 21.1 | $ 15.9 | |
Deferred Certification Costs | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | 12.1 | 12.1 | $ 13.6 | ||
Capitalized Contract Cost, Amortization | $ 2.8 | $ 3.2 | $ 5.7 | $ 6.3 | |
Minimum [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Remaining duration of drilling contracts | 1 month | 1 month | |||
Maximum [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Remaining duration of drilling contracts | 4 years | 4 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net, Current | $ 12.8 | $ 4 |
Contract with Customer, Liability, Current | 46.2 | 56.9 |
Contract with Customer, Liability, Noncurrent | $ 14.8 | $ 20.5 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 12.8 | $ 4 |
Contract with Customer, Liability | 61 | $ 77.4 |
Contract with Customer, Asset, Increase (Decrease) for Contract Acquired in Business Combination | 8.4 | |
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination | 5.3 | |
Revenue from Contract with Customer, Excluding Assessed Tax | 2.3 | |
Contract with Customer, Liability, Increase from Cash Receipts | 34.3 | |
Contract with Customer, Liability, Revenue Recognized, Included In Beginning Balance | (40.2) | |
Contract with Customer, Liability, Revenue Recognized, Added During Period | (15.8) | |
Contract with Customer, Asset, Reclassified to Receivable | $ (1.9) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Future Amortization of Liabilities and Deferred Costs (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Amount | $ 39 |
Capitalized Contract Cost, Amortization Expense, Remainder Of Fiscal Year | $ 39.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 11.7 |
Capitalized Contract Cost, Amortization Expense, Year Two | $ 13.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 7.6 |
Capitalized Contract Cost, Amortization Expense, Year Three | 2.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 2.7 |
Capitalized Contract Cost, Amortization Expense, Year Four and Thereafter | 1.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 61 |
Capitalized Contract Cost, Net | $ 57.2 |
Rowan Transaction (Narrative) (
Rowan Transaction (Narrative) (Details) | Apr. 11, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)jackup$ / shares | Jun. 30, 2019USD ($)jackup$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)jackup$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 10, 2019jackup$ / shares | Dec. 31, 2018$ / shares | Oct. 05, 2018$ / shares |
Business Acquisition [Line Items] | ||||||||||||
Number of Rigs Owned by ARO | jackup | 7 | 7 | 7 | |||||||||
Number of jackups leased by ARO | jackup | 9 | 9 | 9 | |||||||||
Number of Newbuild Jackup Rigs | jackup | 20 | 20 | 20 | |||||||||
Years for Jackup Rig Orders | 10 years | |||||||||||
Jackups Marked For Retirement | jackup | 1 | 1 | 1 | 2 | ||||||||
Number of Drillships owned by legacy Rowan | jackup | 4 | 4 | 4 | |||||||||
Number of Jackup Rigs Owned by Acquiree | jackup | 19 | 19 | 19 | |||||||||
Bargain purchase gain | $ 712,800,000 | $ 8,300,000 | ||||||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years 6 months | |||||||||||
Revenues | $ 583,900,000 | $ 458,500,000 | $ 989,800,000 | 875,500,000 | ||||||||
Net Income (Loss) Attributable to Parent | $ 405,500,000 | (151,000,000) | $ 215,100,000 | $ (291,100,000) | ||||||||
Class A ordinary shares, U.S. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Common stock, par value per share (in dollars per share or pounds sterling per share) | $ / shares | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | ||||||||
Rowan Companies [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Jackups Marked For Retirement | jackup | 2 | 2 | 2 | |||||||||
Number of Drillships owned by legacy Rowan | jackup | 4 | 4 | 4 | |||||||||
Number of Jackup Rigs Owned by Acquiree | jackup | 19 | 19 | 19 | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Per Share | $ / shares | $ 43.67 | |||||||||||
Business Combination, Consideration Transferred | $ 1,402,800,000 | |||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 2,600,000 | |||||||||||
Bargain purchase gain | 712,800,000 | |||||||||||
Business Combination, Acquisition Related Costs | $ 15,000,000 | $ 17,800,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Materials And Supplies | 83,000,000 | |||||||||||
Property and equipment | 2,989,800,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 16,200,000 | 14,900,000 | $ 14,900,000 | 14,900,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,100,000 | 1,900,000 | 1,900,000 | 1,900,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Amortization | $ 1,100,000 | |||||||||||
Deferred Other Tax Expense (Benefit) | 10,000,000 | 52,000,000 | ||||||||||
Deferred Tax Assets, Net | $ 98,000,000 | |||||||||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 50,400,000 | |||||||||||
Unrecognized tax benefit, maximum exposure | $ 159,000,000 | |||||||||||
Revenues | $ 147,200,000 | |||||||||||
Net Income (Loss) Attributable to Parent | $ 95,300,000 | |||||||||||
Rowan Companies [Member] | Class A ordinary shares, U.S. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Per Share | $ / shares | $ 2.750 | |||||||||||
Share Price | $ / shares | $ 15.88 | $ 33.92 | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 88,300,000 | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | shares | 4 | |||||||||||
Common stock, par value per share (in dollars per share or pounds sterling per share) | $ / shares | $ 0.40 | $ 0.10 | ||||||||||
Scenario, Forecast [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Capitalized Contract Cost, Amortization | $ 5,400,000 | $ 5,100,000 | $ 2,600,000 | |||||||||
Minimum [Member] | Rowan Companies [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, Plant and Equipment, Useful Life | 30 years | 16 years | ||||||||||
Maximum [Member] | Rowan Companies [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, Plant and Equipment, Useful Life | 35 years | 35 years |
Rowan Transaction Assets Acquir
Rowan Transaction Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 11, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Liabilities: | |||
Bargain purchase gain | $ 712.8 | $ 8.3 | |
Rowan Companies [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 208.3 | ||
Assets: | |||
Cash and cash equivalents | $ 931.9 | ||
Accounts receivable | 207.1 | ||
Other current assets | 101.6 | ||
Long-term notes receivable from ARO | 454.5 | ||
Investment in ARO | 138.8 | ||
Property and equipment | 2,989.8 | ||
Other assets | 41.7 | ||
Liabilities: | |||
Accounts payable and accrued liabilities | 259.4 | ||
Current portion of long-term debt | 203.2 | ||
Long-term debt | 1,910.9 | ||
Other liabilities | 376.3 | ||
Net assets acquired | 2,115.6 | ||
Less: Transaction consideration | (1,402.8) | ||
Bargain purchase gain | $ 712.8 |
Rowan Transaction Pro Forma Imp
Rowan Transaction Pro Forma Impact of Rowan Transaction (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 11, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Bargain purchase gain | $ 712.8 | $ 8.3 | |||
Rowan Companies [Member] | |||||
Business Acquisition, Pro Forma Revenue | $ 599 | $ 699.8 | 1,179.5 | 1,328 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ (264.9) | $ (172.6) | $ (596.4) | $ (373.5) | |
Business Acquisition, Pro Forma Earnings Per Share, Basic (usd per share) | $ (1.35) | $ (0.88) | $ (3.04) | $ (1.90) | |
Business Acquisition, Transaction Costs | $ 71.5 | $ 80.8 | |||
Bargain purchase gain | $ 712.8 |
Equity Method Investment In A_3
Equity Method Investment In ARO Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2017USD ($) | Jun. 30, 2019USD ($)jackuprigs | Jun. 30, 2019USD ($)jackuprigs | Dec. 31, 2018USD ($) | Oct. 31, 2018rigs | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of Rigs Sold | rigs | 2 | ||||
Number of Rigs Owned by ARO | jackup | 7 | 7 | |||
Shareholder Notes Receivable, Terms | 10 years | ||||
Due from Joint Ventures, Noncurrent | $ 453.1 | $ 453.1 | $ 0 | ||
Contracts Terms On Purchased Rigs | 15 years | ||||
Contracts On Purchased Rigs, Terms For Renewal And Repricing | 3 years | ||||
Number of jackups leased by ARO | jackup | 9 | 9 | |||
Number of Rigs Undergoing Shipyard Projects | rigs | 2 | 2 | |||
Number of Newbuild Jackup Rigs | jackup | 20 | 20 | |||
Years for Jackup Rig Orders | 10 years | ||||
Maximum Contingent Contributions To Joint Venture | $ 1,250 | $ 1,250 | |||
Number of Contingent Newbuild Rigs | jackup | 10 | 10 | |||
Initial Contract Terms On Rigs Owned | 3 years | ||||
Contract Terms For NewBuild Rigs | 8 years | ||||
Minimum Renewal Contract Terms For NewBuild Rigs | 8 years | ||||
Contract On New Build Rigs, Terms for Repricing | 3 years | ||||
Number of Jackup Rigs Leased and Operated During Transaction Period | rigs | 7 | 7 | |||
Due from Joint Ventures | $ 14.3 | $ 14.3 | |||
Equity Method Investment Summarized Financial Information Accounts Receivable | 63.6 | 63.6 | |||
Equity Method Investment Summarized Financial Information Accounts Payable | 2.8 | 2.8 | |||
Equity Method Investment Summarized Financial Information Interest Income | 5.1 | ||||
Equity Method Investment Summarized Financial Information Interest Receivable | $ 11.5 | $ 11.5 | |||
ARO | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments to Acquire Interest in Joint Venture | $ 25 | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
LIBOR | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loans Receivable, Basis Spread on Variable Rate | 2.00% | 2.00% | |||
ARO | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 16.8 |
Equity Method Investment In A_4
Equity Method Investment In ARO - Summarized Financial Data (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
ARO | |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |
Total assets | $ 667.6 |
Total liabilities | 2.8 |
Maximum exposure to loss | 664.8 |
Investment Owned, Balance [Abstract] | |
50% interest in ARO net income | 8.4 |
Amortization of basis differences | (7.8) |
Equity in earnings of ARO | 0.6 |
ARO | |
Related Party Transactions [Abstract] | |
Lease revenue | 18.3 |
Secondment revenue | 15.6 |
Transition Services revenue | 5.2 |
Total revenue from ARO | 39.1 |
ARO | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |
Revenues | 123.8 |
Contract drilling (exclusive of depreciation) | 78.9 |
Depreciation | 12.4 |
General and administrative | 5.3 |
Operating income | 27.2 |
Other expense, net | 8.7 |
Provision for income taxes | 1.7 |
Net income | 16.8 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |
Current assets | 434.9 |
Non-current assets | 898.6 |
Total assets | 1,333.5 |
Current liabilities | 227.4 |
Non-current liabilities | 1,030.6 |
Total liabilities | $ 1,258 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | $ 26,200,000 | $ 27,200,000 |
Supplemental executive retirement plan assets | 27,200,000 | |
Total financial assets | (4,300,000) | (10,700,000) |
Total Financial Liabilities | (4,300,000) | (10,700,000) |
Total Financial Assets | 26,200,000 | 27,200,000 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 26,200,000 | |
Supplemental executive retirement plan assets | 27,200,000 | |
Total financial assets | 0 | 0 |
Total Financial Liabilities | 0 | 0 |
Total Financial Assets | 26,200,000 | 27,200,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 0 | |
Supplemental executive retirement plan assets | 0 | |
Total financial assets | (4,300,000) | (10,700,000) |
Total Financial Liabilities | (4,300,000) | (10,700,000) |
Total Financial Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 0 | |
Supplemental executive retirement plan assets | 0 | |
Total financial assets | 0 | 0 |
Total Financial Liabilities | 0 | 0 |
Total Financial Assets | $ 0 | $ 0 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 7,145.4 | $ 5,010.4 |
Estimated Fair Value | 5,734.4 | 3,545.8 |
Long-term Debt, Current Maturities | 1,125.3 | 0 |
Short-term Debt, Fair Value | 921.2 | |
LONG-TERM DEBT | 6,020.1 | $ 5,010.4 |
Long-term Debt, Fair Value | $ 4,813.2 | |
7.88% Senior Notes Due 2019 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 7.88% | 7.88% |
Carrying Value | $ 202 | $ 0 |
Estimated Fair Value | $ 201.9 | $ 0 |
Six Point Eight Seven Five Percent Senior Notes Due Two Thousand Twenty Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 6.875% | 6.875% |
Carrying Value | $ 126.2 | $ 127.5 |
Estimated Fair Value | $ 122.4 | $ 121.6 |
Four Point Seven Zero Percent Senior Notes Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 4.70% | 4.70% |
Carrying Value | $ 113 | $ 112.7 |
Estimated Fair Value | $ 105.8 | $ 101.8 |
4.875%SeniorNotesDue2022Member [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 4.58% | 4.58% |
Carrying Value | $ 595 | $ 0 |
Estimated Fair Value | $ 572.6 | $ 0 |
Three percent exchangeable senior notes due twenty twenty four [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 3.00% | 3.00% |
Carrying Value | $ 682.8 | $ 666.8 |
Estimated Fair Value | 666.4 | 575.5 |
Three percent exchangeable senior notes due twenty twenty four [Member] | Convertible Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
3.00% exchangeable senior notes, excluding discount and net of debt issuance costs | $ 837.4 | $ 836.3 |
Four Point Five Percent Senior Notes Member [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 4.50% | 4.50% |
Carrying Value | $ 620.1 | $ 619.8 |
Estimated Fair Value | $ 467.7 | $ 405.2 |
4.75% Senior Notes Due 2024 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 4.75% | 4.75% |
Carrying Value | $ 339.5 | $ 0 |
Estimated Fair Value | $ 304 | $ 0 |
8.00% senior notes due 2024 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 8.00% | 8.00% |
Carrying Value | $ 336.5 | $ 337 |
Estimated Fair Value | $ 282.2 | $ 273.7 |
7.38% Senior Notes Due 2025 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 7.38% | 7.38% |
Carrying Value | $ 452.5 | $ 0 |
Estimated Fair Value | $ 388.3 | $ 0 |
Five Point Two Percent Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 5.20% | 5.20% |
Carrying Value | $ 664.8 | $ 664.4 |
Estimated Fair Value | $ 494.1 | $ 443.9 |
Seven Point Seven Five Percent Senior Notes Due Two Thousand Twenty Six [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 7.75% | 7.75% |
Carrying Value | $ 986.1 | $ 985 |
Estimated Fair Value | $ 750.7 | $ 725.5 |
Seven Point Two Zero Percent Debentures Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 7.20% | 7.20% |
Carrying Value | $ 149.4 | $ 149.3 |
Estimated Fair Value | $ 114.8 | $ 109.1 |
Seven Point Eight Seven Five Percent Senior Notes Member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 7.875% | 7.875% |
Carrying Value | $ 374.2 | $ 375 |
Estimated Fair Value | $ 205.9 | $ 223.2 |
5.40% Senior Notes Due 2042 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 5.40% | 5.40% |
Carrying Value | $ 261.9 | $ 0 |
Estimated Fair Value | $ 237.9 | $ 0 |
5.75% Senior notes due 2044 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 5.75% | 5.75% |
Carrying Value | $ 973.4 | $ 972.9 |
Estimated Fair Value | $ 585.9 | $ 566.3 |
5.85% Senior Notes Due 2044 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate stated percentage | 5.85% | 5.85% |
Carrying Value | $ 268 | $ 0 |
Estimated Fair Value | $ 233.8 | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits Pension Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Apr. 11, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 239.3 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation, Current | $ 19.2 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 4 | |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 10.7 | |
Pension Plan [Member] | Rowan Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 202.1 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Details) - Pension Plan [Member] $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Service Cost | $ 0.4 |
Defined Benefit Plan, Interest Cost | 6.5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (8.2) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (1.3) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net assets associated with foreign currency derivatives | $ (4.3) | $ (4.3) | $ (10.7) | ||
Maturity period of derivatives (in months) | 18 months | ||||
Estimated amount of net gains (losses) associated with derivative instruments, net of tax, in next twelve months | $ (2.9) | ||||
Designated as Hedging Instrument | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 177.5 | 177.5 | |||
Designated as Hedging Instrument | United Kingdom, Pounds | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 94.1 | 94.1 | |||
Designated as Hedging Instrument | Australia, Dollars | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 44.4 | 44.4 | |||
Designated as Hedging Instrument | Euro Member Countries, Euro | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 18.9 | 18.9 | |||
Designated as Hedging Instrument | Brazil, Brazil Real | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 9.7 | 9.7 | |||
Designated as Hedging Instrument | Singapore, Dollars | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 10.4 | 10.4 | |||
Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) on derivatives not designated as hedging instruments | (2.2) | $ (9.3) | (5.3) | $ (7.5) | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 104.2 | 104.2 | |||
Not Designated as Hedging Instrument | United Kingdom, Pounds | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 8.3 | 8.3 | |||
Not Designated as Hedging Instrument | Nigeria, Nairas | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 7.3 | 7.3 | |||
Not Designated as Hedging Instrument | Thailand, Baht | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 6.8 | 6.8 | |||
Not Designated as Hedging Instrument | Israel, New Shekels | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 6.2 | 6.2 | |||
Not Designated as Hedging Instrument | Australia, Dollars | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 28.1 | 28.1 | |||
Not Designated as Hedging Instrument | Indonesia, Rupiahs | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 13.8 | 13.8 | |||
Not Designated as Hedging Instrument | Saudi Arabia, Riyals | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 13.4 | 13.4 | |||
Not Designated as Hedging Instrument | Euro Member Countries, Euro | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 5.3 | 5.3 | |||
Not Designated as Hedging Instrument | No currency | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | $ 15 | $ 15 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Derivatives At Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Total fair value of derivative assets | $ 1.1 | $ 0.6 | |
Total fair value of derivative liabilities | 5.4 | 11.3 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | 0.3 | 0.2 | |
Total fair value of derivative liabilities | 4.7 | 8.7 | |
Other Current Assets | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | [1] | 0.3 | 0.2 |
Other Current Assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | [1] | 0.8 | 0.4 |
Other Current Liabilities | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative liabilities | [1] | 4.4 | 8.3 |
Other Current Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative liabilities | [1] | 0.7 | 2.6 |
Other Noncurrent Assets | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | [2] | 0 | 0 |
Other Noncurrent Liabilities | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative liabilities | [2] | $ 0.3 | $ 0.4 |
[1] | Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets. | ||
[2] | Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets. |
Derivative Instruments (Gains A
Derivative Instruments (Gains And Losses On Derivatives Designated As Cash Flow Hedges) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||||
Interest Rate Lock Contracts | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | [1] | $ 0 | $ 0 | ||||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | [1],[2] | 100,000 | 100,000 | ||||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [1],[3] | 0 | 0 | ||||||
Foreign Exchange Forward | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | $ (1,600,000) | [4] | $ (7,600,000) | [4] | (1,600,000) | [5] | (5,700,000) | [5] | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | [2] | 1,800,000 | [4] | (700,000) | [4] | 3,300,000 | [5] | (3,000,000) | [5] |
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [3] | 0 | [4] | (1,000,000) | [4] | 0 | [5] | (1,200,000) | [5] |
Foreign Exchange Forward | Contract Drilling | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | (2,000,000) | 500,000 | (3,700,000) | 2,600,000 | |||||
Foreign Exchange Forward | Depreciation Expense | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | 200,000 | 200,000 | 400,000 | 400,000 | |||||
Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | (1,600,000) | (7,600,000) | (1,600,000) | (5,700,000) | |||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | [2] | 1,800,000 | (700,000) | 3,400,000 | (2,900,000) | ||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [3] | $ 0 | $ (1,000,000) | $ 0 | $ (1,200,000) | ||||
[1] | Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net, in our condensed consolidated statements of operations. | ||||||||
[2] | Changes in the fair value of cash flow hedge derivatives are recorded in AOCI. Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction. | ||||||||
[3] | Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our condensed consolidated statements of operations. As a result of our adoption of Update 2017-12, which we adopted effective January 1, 2019, ineffectiveness is no longer separately measured and recognized. See additional information in Note 1 . | ||||||||
[4] | During the second quarter of 2019, $2.0 million of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the prior year quarter, $500,000 of gains were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. | ||||||||
[5] | During the six-month period ended June 30, 2019 , $3.7 million of losses were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the six-month period ended June 30, 2018 , $2.6 million of gains were reclassified from AOCI into contract drilling expense and $400,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 407.3 | $ (142.1) | $ 219.3 | $ (282.5) |
Net Income (Loss) Attributable to Noncontrolling Interest | 1.8 | 0.9 | 4.2 | 0.5 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 405.5 | $ (143) | $ 215.1 | $ (283) |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Net Income Attributable To Ensco Shares) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations attributable to Valaris | $ 405.5 | $ (143) | $ 215.1 | $ (283) |
Income from continuing operations allocated to non-vested share awards | (12.1) | (0.1) | (6.3) | (0.2) |
Income (loss) from continuing operations attributable to Valaris shares | $ 393.4 | $ (143.1) | $ 208.8 | $ (283.2) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive share options excluded from computation of diluted earnings per share (in shares) | 400 | 1,700,000 | 300,000 | 1,700,000 |
Debt Schedule of Extinguishment
Debt Schedule of Extinguishment of Debt - Tender Offers and Repurchases (Details) - Scenario, Forecast [Member] | Jul. 12, 2019USD ($) |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | $ 951,800,000 |
Debt Instrument, Repurchase Amount | 724,100,000 |
Senior Notes | Four Point Five Percent Senior Notes Member [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 320,000,000 |
Debt Instrument, Repurchase Amount | 240,000,000 |
Senior Notes | Five Point Two Percent Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 335,500,000 |
Debt Instrument, Repurchase Amount | 250,000,000 |
Senior Notes | Seven Point Two Zero Percent Debentures Member | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 37,900,000 |
Debt Instrument, Repurchase Amount | 29,900,000 |
Senior Notes | 4.75% Senior Notes Due 2024 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 79,500,000 |
Debt Instrument, Repurchase Amount | 61,200,000 |
Senior Notes | 7.38%SeniorNotesDue2025 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 139,200,000 |
Debt Instrument, Repurchase Amount | 109,200,000 |
Senior Notes | 8.00% senior notes due 2024 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount Repurchased | 39,700,000 |
Debt Instrument, Repurchase Amount | $ 33,800,000 |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 29, 2019 | Jul. 12, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ (19) | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,300 | $ 2,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity Through 2020 | 1,300 | |||||
Line of Credit Facility, Maximum Borrowing Capacity through 2022 | 1,700 | $ 1,200 | ||||
Line of Credit Facility, Increase (Decrease), Net | 250 | |||||
Tender Offer | 600 | |||||
Scenario, Forecast [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain (Loss) on Extinguishment of Debt | $ 195.7 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 125 | |||||
Debt Instrument, Repurchased Face Amount | $ 951.8 | |||||
Debt Instrument, Repurchase Amount | $ 724.1 | |||||
7.88%SeniorNotesDue2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 201.4 | |||||
4.875%SeniorNotesDue2022Member [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 620.8 | |||||
4.75%SeniorNotesDue2024Member [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 398.1 | |||||
7.38%SeniorNotesDue2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 500 | |||||
5.40%SeniorNotesDue2042 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 400 | |||||
5.85%SeniorNotesDue2044 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 400 |
Shareholders Equity (Details)
Shareholders Equity (Details) - Rowan Companies [Member] shares in Millions, $ in Millions | Apr. 11, 2019USD ($)shares |
Business Combination, Consideration Transferred | $ | $ 1,402.8 |
Class A ordinary shares, U.S. | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 88.3 |
Shareholders Equity Shareholder
Shareholders Equity Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 9,722.2 | $ 9,722.2 | $ 8,088.8 | ||||||
Net income (loss) | 407.3 | $ (150.1) | 219.3 | $ (290.6) | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 88 | ||||||||
Shares Issued Under Share Based Compensation Plans, Shares | 2,600,000 | 3,400,000 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ (0.7) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 0.2 | $ (8.5) | $ 1.7 | $ (8.9) | |||||
Common Stock [Member] | |||||||||
Shares, Issued | 205,800,000 | 115,200,000 | 115,200,000 | 111,800,000 | 205,800,000 | 115,200,000 | 115,200,000 | 111,800,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 82.5 | $ 46.2 | $ 46.2 | $ 44.8 | $ 82.5 | $ 46.2 | $ 46.2 | $ 44.8 | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 35.2 | ||||||||
Shares Issued Under Share Based Compensation Plans, Shares | 1,100,000 | 1,400,000 | |||||||
Additional Paid-in Capital [Member] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 8,608.4 | $ 7,230.2 | $ 7,209.5 | $ 7,202.4 | 8,608.4 | 7,209.5 | 7,225 | 7,195 | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,365.5 | ||||||||
Shares Issued Under Share Based Compensation Plans, Shares | (1,100,000) | (100,000) | (400,000) | (100,000) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 13.8 | $ 5.3 | $ 7.5 | $ 7.5 | |||||
Retained Earnings [Member] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,084.8 | 679.3 | 1,232 | 1,387.4 | 1,084.8 | 1,232 | 874.2 | 1,532.7 | |
Net income (loss) | 405.5 | (190.4) | (151) | (140.1) | |||||
Dividends, Common Stock, Cash | (4.5) | (4.4) | (4.4) | ||||||
Retained Earnings [Member] | Accounting Standards Update 2018-02 [Member] | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.8) | ||||||||
AOCI Attributable to Parent [Member] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 19.9 | 19.7 | 20.5 | 29 | 19.9 | 20.5 | 18.2 | 28.6 | |
Other Comprehensive Income (Loss), Net of Tax | 0.2 | 1.5 | (8.5) | (0.4) | |||||
AOCI Attributable to Parent [Member] | Accounting Standards Update 2018-02 [Member] | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0.8 | ||||||||
Treasury Stock [Member] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (75) | $ (74.9) | $ (72) | $ (70) | (75) | (72) | (72.2) | (69) | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 2.1 | ||||||||
Shares Issued Under Share Based Compensation Plans, Shares | (800,000) | 100,000 | (1,400,000) | 100,000 | |||||
Stock Repurchased During Period, Value | $ (1.4) | $ (2.8) | $ (0.6) | $ (1.1) | |||||
Noncontrolling Interest [Member] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1.6 | (0.2) | (2.3) | (2.5) | $ 1.6 | $ (2.3) | $ (2.6) | $ (2.1) | |
Net income (loss) | $ 1.8 | $ 2.4 | $ 0.9 | $ (0.4) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Discrete Income Tax Expense (Benefit) | $ 1,200,000 | $ 2,300,000 | $ 600,000 | $ 11,200,000 |
Income tax expense, adjusted for discrete items | $ 33,800,000 | $ 27,000,000 | 64,700,000 | $ 54,300,000 |
Tax Assessment | 69,000,000 | |||
Rowan Companies [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits, Increase Resulting from Acquisition | $ 50,400,000 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | May 01, 2019 | Jan. 31, 2019 | Jun. 30, 2019 |
Loss Contingencies [Line Items] | |||
Decline in backlog as a result of potential contract termination | $ 19 | ||
Letters of credit outstanding, amount | $ 135.9 | ||
SHI Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 180 | $ 10 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||||
Operating Lease, Right-of-Use Asset | $ 57.1 | $ 57.1 | $ 0 | ||
Operating Lease, Liability, Current | 21.5 | 21.5 | 0 | ||
Operating Lease, Liability, Noncurrent | 48.6 | 48.6 | $ 0 | ||
Minimum [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating Lease, Payments | 7.2 | ||||
Lessee, Operating Lease, Remaining Lease Terms | 1 year | ||||
Maximum [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating Lease, Payments | 14.2 | ||||
Lessee, Operating Lease, Remaining Lease Terms | 11 years | ||||
Rowan Companies [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating Lease, Right-of-Use Asset | 12.2 | 12.2 | |||
Operating Lease, Liability, Current | 3.9 | 3.9 | |||
Operating Lease, Liability, Noncurrent | $ 10.6 | $ 10.6 | |||
Scenario, Forecast [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Operating Lease, Payments | $ 9.6 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 7 | $ 13.2 |
Short-term Lease, Cost | 2.2 | 5.3 |
Sublease Income | (0.4) | (0.7) |
Lease, Cost | $ 8.8 | $ 17.8 |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 15.3 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 19.5 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 10.8 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 9.9 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 10.2 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 22.1 |
Lessee, Operating Lease, Liability, Payments, Due | 87.8 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (17.7) |
Operating Lease, Liability | $ 70.1 |
Leases Supplemental balance she
Leases Supplemental balance sheet information related to operating leases (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental balance sheet information [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 57.1 | $ 0 |
Operating Lease, Liability, Current | 21.5 | 0 |
Operating Lease, Liability, Noncurrent | 48.6 | $ 0 |
Operating Lease, Liability | $ 70.1 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 4 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 8.00% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2019jackupReportable_segment | Apr. 10, 2019jackup | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Number of jackups leased by ARO | 9 | |
Number of operating segments (in segments) | Reportable_segment | 3 | |
Jackups Marked For Retirement | 1 | 2 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 583,900,000 | $ 458,500,000 | $ 989,800,000 | $ 875,500,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 500,300,000 | 344,300,000 | 832,900,000 | 669,500,000 | |
Asset Impairment Charges | 2,500,000 | 0 | 2,500,000 | 0 | |
Depreciation expense | 157,900,000 | 120,700,000 | 282,900,000 | 235,900,000 | |
General and administrative | 81,200,000 | 26,100,000 | 110,800,000 | 54,000,000 | |
Income (Loss) from Equity Method Investments | (600,000) | 0 | (600,000) | 0 | |
OPERATING LOSS | (157,400,000) | (32,600,000) | (238,700,000) | (83,900,000) | |
Property and equipment, net | 15,455,700,000 | 12,783,900,000 | 15,455,700,000 | 12,783,900,000 | $ 12,616,200,000 |
Floaters | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 295,600,000 | 284,900,000 | 528,300,000 | 543,900,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 249,200,000 | 203,700,000 | 431,000,000 | 388,800,000 | |
Depreciation expense | 98,400,000 | 80,800,000 | 183,200,000 | 156,100,000 | |
General and administrative | 0 | 0 | 0 | 0 | |
OPERATING LOSS | (52,000,000) | 400,000 | (85,900,000) | (1,000,000) | |
Property and equipment, net | 10,364,700,000 | 9,574,900,000 | 10,364,700,000 | 9,574,900,000 | |
Jackups | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 229,200,000 | 158,700,000 | 386,200,000 | 302,100,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 212,200,000 | 126,800,000 | 347,600,000 | 253,700,000 | |
Depreciation expense | 55,500,000 | 36,500,000 | 92,400,000 | 73,000,000 | |
General and administrative | 0 | 0 | 0 | 0 | |
OPERATING LOSS | (38,500,000) | (4,600,000) | (53,800,000) | (24,600,000) | |
Property and equipment, net | 5,055,600,000 | 3,167,000,000 | 5,055,600,000 | 3,167,000,000 | |
ARO | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 123,800,000 | 123,800,000 | |||
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 78,900,000 | 78,900,000 | |||
Depreciation expense | 12,400,000 | 12,400,000 | |||
General and administrative | 5,300,000 | 5,300,000 | |||
OPERATING LOSS | 27,200,000 | 27,200,000 | |||
Property and equipment, net | 656,500,000 | 656,500,000 | |||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 59,100,000 | 14,900,000 | 75,300,000 | 29,500,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 38,900,000 | 13,800,000 | 54,300,000 | 27,000,000 | |
Depreciation expense | 0 | 0 | 0 | 0 | |
General and administrative | 0 | 0 | 0 | 0 | |
OPERATING LOSS | 20,200,000 | 1,100,000 | 21,000,000 | 2,500,000 | |
Property and equipment, net | 0 | 0 | 0 | 0 | |
Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (123,800,000) | 0 | (123,800,000) | 0 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | (78,900,000) | 0 | (78,900,000) | 0 | |
Asset Impairment Charges | 2,500,000 | ||||
Depreciation expense | (8,400,000) | 3,400,000 | (5,100,000) | 6,800,000 | |
General and administrative | 75,900,000 | 26,100,000 | 105,500,000 | 54,000,000 | |
Income (Loss) from Equity Method Investments | (600,000) | (600,000) | |||
OPERATING LOSS | (114,300,000) | (29,500,000) | (147,200,000) | (60,800,000) | |
Property and equipment, net | $ (621,100,000) | $ 42,000,000 | $ (621,100,000) | $ 42,000,000 |
Segment Information (Schedule_2
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details) | Jun. 30, 2019jackup |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 81 |
Number of Rigs Owned by ARO | 7 |
Number of jackups leased by ARO | 9 |
Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 28 |
Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 44 |
Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 9 |
ARO | |
Segment Reporting Information [Line Items] | |
Number of Rigs Owned by ARO | 7 |
North & South America (Excl. Brazil) | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 21 |
North & South America (Excl. Brazil) | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 12 |
North & South America (Excl. Brazil) | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 9 |
Europe & Mediterranean | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 22 |
Europe & Mediterranean | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 5 |
Europe & Mediterranean | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 17 |
Middle East & Africa(2) | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 25 |
Middle East & Africa(2) | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 5 |
Middle East & Africa(2) | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 11 |
Middle East & Africa(2) | Other | |
Segment Reporting Information [Line Items] | |
Number of jackups leased by ARO | 9 |
Middle East & Africa(2) | ARO | |
Segment Reporting Information [Line Items] | |
Number of Rigs Owned by ARO | 7 |
Asia & Pacific Rim | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 11 |
Asia & Pacific Rim | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 4 |
Asia & Pacific Rim | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 7 |
Construction in Progress [Member] | Asia & Pacific Rim | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 2 |
Construction in Progress [Member] | Asia & Pacific Rim | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 2 |
Construction in Progress [Member] | Asia & Pacific Rim | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Supplemental Financial Inform_3
Supplemental Financial Information (Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 637.2 | $ 348.1 |
Allowance for doubtful accounts | (8.5) | (3.4) |
Accounts receivable, net | 628.7 | 344.7 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 568.3 | 301.7 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 68.9 | $ 46.4 |
Supplemental Financial Inform_4
Supplemental Financial Information (Other Current Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Materials and supplies | $ 360.7 | $ 268.1 |
Prepaid taxes | 58.3 | 35 |
Deferred costs | 47.5 | 23.5 |
Prepaid expenses | 16.2 | 15.2 |
Other | 17 | 19.1 |
Other current assets | $ 499.7 | $ 360.9 |
Supplemental Financial Inform_5
Supplemental Financial Information (Other Assets, Net) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 57.1 | $ 0 |
Deferred tax assets | 31.4 | 29.4 |
Supplemental executive retirement plan assets | 26.2 | 27.2 |
Deferred costs | 19.9 | 21.5 |
Intangible Assets, Net (Excluding Goodwill) | 14.9 | 0 |
Other | 19.9 | 19.7 |
Other assets, net | $ 169.4 | $ 97.8 |
Supplemental Financial Inform_6
Supplemental Financial Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Accrued interest | $ 136.9 | $ 100.6 |
Personnel costs | 101.2 | 82.5 |
Taxes | 53.7 | 36.9 |
Deferred revenue | 46.2 | 56.9 |
Other Accrued Liabilities, Current | 26.5 | 14.3 |
Operating Lease, Liability, Current | 21.5 | 0 |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 19.7 | 0 |
Derivative liabilities | 5.1 | 10.9 |
Other | 27.5 | 15.9 |
Accrued liabilities and other | $ 438.3 | $ 318 |
Supplemental Financial Inform_7
Supplemental Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Unrecognized tax benefits (inclusive of interest and penalties) | $ 276.2 | $ 177 |
Liability, Pension and Other Postretirement and Postemployment Benefits, Noncurrent | 214.4 | 0 |
Deferred Tax Liabilities, Net, Noncurrent | 106.5 | 70.7 |
Intangible Liabilities Noncurrent | 53.8 | 53.5 |
Operating Lease, Liability, Noncurrent | 48.6 | 0 |
Supplemental executive retirement plan liabilities | 26.9 | 28.1 |
Deferred tax liabilities | 22.7 | 25.1 |
Deferred revenue | 14.8 | 20.5 |
Deferred Rent Credit, Noncurrent | 0 | 11.7 |
Other | 35.1 | 9.4 |
Other liabilities | $ 799 | $ 396 |
Supplemental Financial Inform_8
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Derivative instruments | $ 14.4 | $ 12.6 |
Currency translation adjustment | 7.3 | 7.3 |
Other | (1.8) | (1.7) |
Accumulated other comprehensive income | $ 19.9 | $ 18.2 |
Supplemental Financial Inform_9
Supplemental Financial Information Schedule of Revenue by Major Customers, by Reporting Segments (Details) - Sales Revenue, Services, Net - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Total S.A. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 13.00% | 13.00% | 15.00% | 14.00% |
Saudi Aramco | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 9.00% | 9.00% | 10.00% | 9.00% |
BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 9.00% | 5.00% | 8.00% | 8.00% |
Petrobras | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 4.00% | 10.00% | 5.00% | 11.00% |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 65.00% | 63.00% | 62.00% | 58.00% |
Floaters | Total S.A. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 90.00% | 95.00% | ||
Floaters | BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 19.00% | 13.00% | 43.00% | |
Jackups | BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 44.00% | 28.00% | 39.00% | 15.00% |
Supplemental Financial Infor_10
Supplemental Financial Information Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 583.9 | $ 458.5 | $ 989.8 | $ 875.5 |
Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 583.9 | 458.5 | 989.8 | 875.5 |
US Gulf Of Mexico | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 93.4 | 59.5 | 148.1 | 113.1 |
SAUDI ARABIA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 83.2 | 39.5 | 136.6 | 82.7 |
AUSTRALIA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 70 | 80.4 | 137.3 | 132.6 |
ANGOLA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 68.1 | 72.2 | 138.7 | 133.3 |
UNITED KINGDOM | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 54.2 | 53.7 | 97.6 | 100.3 |
BRAZIL | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 25.1 | 46.1 | 47.1 | 96.4 |
Other | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 189.9 | 107.1 | 284.4 | 217.1 |
Floaters | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 295.6 | $ 284.9 | $ 528.3 | $ 543.9 |
Floaters | US Gulf Of Mexico | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 39.00% | 36.00% | 34.00% | 37.00% |
Floaters | AUSTRALIA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 94.00% | 95.00% | 94.00% | 97.00% |
Floaters | ANGOLA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 90.00% | 84.00% | 88.00% | 90.00% |
Jackups | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 229.2 | $ 158.7 | $ 386.2 | $ 302.1 |
Jackups | US Gulf Of Mexico | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 39.00% | 39.00% | 41.00% | |
Jackups | SAUDI ARABIA | Sales Revenue, Services, Net | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 60.00% | 76.00% |
Guarantee Of Registered Secur_3
Guarantee Of Registered Securities (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | ||
Senior notes aggregate outstanding principal balance | $ 422.9 | |
7.88% Senior notes due 2019(2) | ||
Guarantor Obligations [Line Items] | ||
Debt instrument interest rate stated percentage | 6.875% | 6.875% |
Senior note, maturity year | 2020 | |
7.38% Senior notes due 2025(2) | ||
Guarantor Obligations [Line Items] | ||
Debt instrument interest rate stated percentage | 7.875% | 7.875% |
Senior note, maturity year | 2040 | |
7.20% Debentures Due 2027 | ||
Guarantor Obligations [Line Items] | ||
Debt instrument interest rate stated percentage | 7.20% | |
Senior note, maturity year | 2027 | |
Senior notes aggregate outstanding principal balance | $ 150 | |
Pride International Inc and Ensco International Inc [Member] | ||
Guarantor Obligations [Line Items] | ||
Subsidiary, ownership percentage by parent | 100.00% |
Guarantee Of Registered Secur_4
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Guarantor Obligations [Line Items] | ||||
Revenues | $ 583.9 | $ 458.5 | $ 989.8 | $ 875.5 |
Contract drilling (exclusive of depreciation) | 500.3 | 344.3 | 832.9 | 669.5 |
Asset Impairment Charges | 2.5 | 0 | 2.5 | 0 |
Depreciation expense | 157.9 | 120.7 | 282.9 | 235.9 |
General and administrative | 81.2 | 26.1 | 110.8 | 54 |
Costs and Expenses | 741.9 | 491.1 | 1,229.1 | 959.4 |
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 0.6 | 0 | 0.6 | 0 |
Operating Income (Loss) | (157.4) | (32.6) | (238.7) | (83.9) |
OTHER INCOME (EXPENSE), NET | 597.3 | (84.8) | 522.1 | (155.5) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 439.9 | (117.4) | 283.4 | (239.4) |
INCOME TAX PROVISION | 32.6 | 24.7 | 64.1 | 43.1 |
Equity in Earnings of Subsidiaries Net of Tax | 0 | 0 | ||
DISCONTINUED OPERATIONS, NET | 0 | (8) | 0 | (8.1) |
NET INCOME (LOSS) | 407.3 | (150.1) | 219.3 | (290.6) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 405.5 | (151) | 215.1 | (291.1) |
Valaris plc | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 19.9 | 12.3 | 31.3 | 24.6 |
Contract drilling (exclusive of depreciation) | 18.3 | 13 | 30 | 26.4 |
Depreciation expense | 0 | 0 | 0 | 0 |
General and administrative | 46.4 | 10.3 | 61.3 | 20.5 |
Costs and Expenses | 64.7 | 91.3 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | (134.9) | (269.3) | ||
Operating Income (Loss) | (44.8) | (11) | (60) | (22.3) |
OTHER INCOME (EXPENSE), NET | 694.9 | (5.1) | 678.8 | 0.5 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 650.1 | (16.1) | 618.8 | (21.8) |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | (244.6) | (403.7) | ||
DISCONTINUED OPERATIONS, NET | 0 | 0 | ||
NET INCOME (LOSS) | 405.5 | (151) | 215.1 | (291.1) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 405.5 | (151) | 215.1 | (291.1) |
ENSCO International Incorporated | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 36.1 | 39.8 | 75.6 | 80.1 |
Contract drilling (exclusive of depreciation) | 31.8 | 36.2 | 67.5 | 72.8 |
Depreciation expense | 4 | 3.5 | 7.7 | 7 |
General and administrative | 0.1 | 0.1 | 0.2 | 0.3 |
Costs and Expenses | 35.9 | 75.4 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 28.7 | 49.5 | ||
Operating Income (Loss) | 0.2 | 0 | 0.2 | 0 |
OTHER INCOME (EXPENSE), NET | (15.6) | (40.5) | (31) | (68.5) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (15.4) | (40.5) | (30.8) | (68.5) |
INCOME TAX PROVISION | 12.4 | 18.6 | 29 | 22.9 |
Equity in Earnings of Subsidiaries Net of Tax | 43.2 | 75.3 | ||
DISCONTINUED OPERATIONS, NET | 0 | 0 | ||
NET INCOME (LOSS) | 15.4 | (30.4) | 15.5 | (41.9) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 15.4 | (30.4) | 15.5 | (41.9) |
Pride International LLC | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Contract drilling (exclusive of depreciation) | 0 | 0 | 0 | 0 |
Depreciation expense | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Costs and Expenses | 0 | 0 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 22.6 | 46 | ||
Operating Income (Loss) | 0 | 0 | 0 | 0 |
OTHER INCOME (EXPENSE), NET | (20.3) | (19.7) | (40.8) | (50) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (20.3) | (19.7) | (40.8) | (50) |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | 27 | 53.1 | ||
DISCONTINUED OPERATIONS, NET | 0 | 0 | ||
NET INCOME (LOSS) | 6.7 | 2.9 | 12.3 | (4) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 6.7 | 2.9 | 12.3 | (4) |
Other Non-Guarantor Subsidiaries of Valaris | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 607.9 | 484.3 | 1,038.3 | 927.8 |
Contract drilling (exclusive of depreciation) | 530.2 | 373 | 890.8 | 727.3 |
Asset Impairment Charges | 2.5 | 2.5 | ||
Depreciation expense | 153.9 | 117.2 | 275.2 | 228.9 |
General and administrative | 34.7 | 15.7 | 49.3 | 33.2 |
Costs and Expenses | 721.3 | 1,217.8 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 0.6 | 0 | 0.6 | 0 |
Operating Income (Loss) | (112.8) | (21.6) | (178.9) | (61.6) |
OTHER INCOME (EXPENSE), NET | (66) | (23.5) | (93.3) | (56.9) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (178.8) | (45.1) | (272.2) | (118.5) |
INCOME TAX PROVISION | 20.2 | 6.1 | 35.1 | 20.2 |
Equity in Earnings of Subsidiaries Net of Tax | 0 | 0 | ||
DISCONTINUED OPERATIONS, NET | (8) | (8.1) | ||
NET INCOME (LOSS) | (199) | (59.2) | (307.3) | (146.8) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | (200.8) | (60.1) | (311.5) | (147.3) |
Consolidating Adjustments | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | (80) | (77.9) | (155.4) | (157) |
Contract drilling (exclusive of depreciation) | (80) | (77.9) | (155.4) | (157) |
Depreciation expense | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Costs and Expenses | (80) | (155.4) | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 83.6 | 173.8 | ||
Operating Income (Loss) | 0 | 0 | 0 | 0 |
OTHER INCOME (EXPENSE), NET | 4.3 | 4 | 8.4 | 19.4 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 4.3 | 4 | 8.4 | 19.4 |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | 174.4 | 275.3 | ||
DISCONTINUED OPERATIONS, NET | 0 | 0 | ||
NET INCOME (LOSS) | 178.7 | 87.6 | 283.7 | 193.2 |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ 178.7 | $ 87.6 | $ 283.7 | $ 193.2 |
Guarantee Of Registered Secur_5
Guarantee Of Registered Securities (Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
NET INCOME (LOSS) | $ 407.3 | $ (150.1) | $ 219.3 | $ (290.6) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | (1.6) | (7.6) | (1.6) | (5.7) |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 1.8 | (0.7) | 3.4 | (2.9) |
Other | 0 | (0.2) | (0.1) | (0.3) |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0.2 | (8.5) | 1.7 | (8.9) |
COMPREHENSIVE INCOME (LOSS) | 407.5 | (158.6) | 221 | (299.5) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 405.7 | (159.5) | 216.8 | (300) |
Valaris plc | ||||
NET INCOME (LOSS) | 405.5 | (151) | 215.1 | (291.1) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | 0 | 0 | 0 | 0 |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) | 405.5 | (151) | 215.1 | (291.1) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 405.5 | (151) | 215.1 | (291.1) |
ENSCO International Incorporated | ||||
NET INCOME (LOSS) | 15.4 | (30.4) | 15.5 | (41.9) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | (1.6) | (7.6) | (1.6) | (5.7) |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 1.8 | (0.7) | 3.4 | (2.9) |
Other | 0 | 0 | 0 | 0 |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0.2 | (8.3) | 1.8 | (8.6) |
COMPREHENSIVE INCOME (LOSS) | 15.6 | (38.7) | 17.3 | (50.5) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 15.6 | (38.7) | 17.3 | (50.5) |
Pride International LLC | ||||
NET INCOME (LOSS) | 6.7 | 2.9 | 12.3 | (4) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | 0 | 0 | 0 | 0 |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) | 6.7 | 2.9 | 12.3 | (4) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 6.7 | 2.9 | 12.3 | (4) |
Other Non-Guarantor Subsidiaries of Valaris | ||||
NET INCOME (LOSS) | (199) | (59.2) | (307.3) | (146.8) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | 0 | 0 | 0 | 0 |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 0 | 0 | 0 | 0 |
Other | 0 | (0.2) | (0.1) | (0.3) |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0 | (0.2) | (0.1) | (0.3) |
COMPREHENSIVE INCOME (LOSS) | (199) | (59.4) | (307.4) | (147.1) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1.8) | (0.9) | (4.2) | (0.5) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | (200.8) | (60.3) | (311.6) | (147.6) |
Consolidating Adjustments | ||||
NET INCOME (LOSS) | 178.7 | 87.6 | 283.7 | 193.2 |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | 0 | 0 | 0 | 0 |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
NET OTHER COMPREHENSIVE INCOME (LOSS) | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) | 178.7 | 87.6 | 283.7 | 193.2 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ 178.7 | $ 87.6 | $ 283.7 | $ 193.2 |
Guarantee Of Registered Secur_6
Guarantee Of Registered Securities (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | $ 959.1 | $ 275.1 | $ 485.5 | $ 445.4 |
Short-term investments | 135 | 329 | ||
Accounts receivable, net | 628.7 | 344.7 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Other current assets | 499.7 | 360.9 | ||
Total current assets | 2,222.5 | 1,309.7 | ||
PROPERTY AND EQUIPMENT, AT COST | 18,472.8 | 15,517 | ||
Less accumulated depreciation | 3,017.1 | 2,900.8 | ||
Property and equipment, net | 15,455.7 | 12,616.2 | 12,783.9 | |
Due from Joint Ventures, Noncurrent | 453.1 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 139.4 | 0 | ||
DUE FROM AFFILIATES | 0 | 0 | ||
Investment in and advances to Consolidated Subsidiaries | 0 | 0 | ||
OTHER ASSETS | 169.4 | 97.8 | ||
TOTAL ASSETS | 18,440.1 | 14,023.7 | ||
Accounts payable and accrued liabilities | 773.5 | 528.5 | ||
Accounts payable to affiliates | 0 | 0 | ||
Long-term Debt, Current Maturities | 1,125.3 | 0 | ||
Total current liabilities | 1,898.8 | 528.5 | ||
Due to Affiliate | 0 | 0 | ||
LONG-TERM DEBT | 6,020.1 | 5,010.4 | ||
OTHER LIABILITIES | 799 | 396 | ||
ENSCO SHAREHOLDERS' EQUITY | 9,720.6 | 8,091.4 | ||
NONCONTROLLING INTERESTS | 1.6 | (2.6) | ||
Total equity | 9,722.2 | 8,088.8 | ||
Total liabilities and shareholders' equity | 18,440.1 | 14,023.7 | ||
Valaris plc | ||||
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | 481.7 | 199.8 | 305.6 | 185.2 |
Short-term investments | 135 | 329 | ||
Accounts receivable, net | 4.4 | 7.3 | ||
Accounts receivable from affiliates | 2,008.3 | 1,861.2 | ||
Other current assets | 0 | 0.6 | ||
Total current assets | 2,629.4 | 2,397.9 | ||
PROPERTY AND EQUIPMENT, AT COST | 1.8 | 1.8 | ||
Less accumulated depreciation | 1.8 | 1.8 | ||
Property and equipment, net | 0 | 0 | ||
DUE FROM AFFILIATES | 2,416.3 | 2,413.8 | ||
Investment in and advances to Consolidated Subsidiaries | 10,259.5 | 8,522.6 | ||
OTHER ASSETS | 10.3 | 8.1 | ||
TOTAL ASSETS | 15,315.5 | 13,342.4 | ||
Accounts payable and accrued liabilities | 105.6 | 85.3 | ||
Accounts payable to affiliates | 34.5 | 59.7 | ||
Long-term Debt, Current Maturities | 691.9 | |||
Total current liabilities | 832 | 145 | ||
Due to Affiliate | 1,781.6 | 1,432 | ||
LONG-TERM DEBT | 2,988.2 | 3,676.5 | ||
OTHER LIABILITIES | (8.4) | 0.1 | ||
ENSCO SHAREHOLDERS' EQUITY | 9,722.1 | 8,088.8 | ||
NONCONTROLLING INTERESTS | 0 | 0 | ||
Total equity | 9,722.1 | 8,088.8 | ||
Total liabilities and shareholders' equity | 15,315.5 | 13,342.4 | ||
ENSCO International Incorporated | ||||
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 23.4 | 25.4 | ||
Accounts receivable from affiliates | 110 | 171.4 | ||
Other current assets | 11.5 | 6 | ||
Total current assets | 144.9 | 202.8 | ||
PROPERTY AND EQUIPMENT, AT COST | 104.7 | 125.2 | ||
Less accumulated depreciation | 75.1 | 91.3 | ||
Property and equipment, net | 29.6 | 33.9 | ||
DUE FROM AFFILIATES | 0 | 234.5 | ||
Investment in and advances to Consolidated Subsidiaries | 3,789 | 3,713.7 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | 3,963.5 | 4,184.9 | ||
Accounts payable and accrued liabilities | 14.9 | 32 | ||
Accounts payable to affiliates | 71.6 | 139.5 | ||
Long-term Debt, Current Maturities | 37.7 | |||
Total current liabilities | 124.2 | 171.5 | ||
Due to Affiliate | 1,036.3 | 1,226.9 | ||
LONG-TERM DEBT | 111.6 | 149.3 | ||
OTHER LIABILITIES | 79 | 64.3 | ||
ENSCO SHAREHOLDERS' EQUITY | 2,612.4 | 2,572.9 | ||
NONCONTROLLING INTERESTS | 0 | 0 | ||
Total equity | 2,612.4 | 2,572.9 | ||
Total liabilities and shareholders' equity | 3,963.5 | 4,184.9 | ||
Pride International LLC | ||||
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | 2.7 | 2.7 | 16.1 | 25.6 |
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 1.4 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 4.1 | 2.7 | ||
PROPERTY AND EQUIPMENT, AT COST | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
DUE FROM AFFILIATES | 61.1 | 125 | ||
Investment in and advances to Consolidated Subsidiaries | 1,253 | 1,199.9 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | 1,318.2 | 1,327.6 | ||
Accounts payable and accrued liabilities | 12.7 | 12.7 | ||
Accounts payable to affiliates | 27.6 | 38.2 | ||
Long-term Debt, Current Maturities | 0 | |||
Total current liabilities | 40.3 | 50.9 | ||
Due to Affiliate | 1,357.7 | 1,366.5 | ||
LONG-TERM DEBT | 500.3 | 502.6 | ||
OTHER LIABILITIES | 0 | 0 | ||
ENSCO SHAREHOLDERS' EQUITY | (580.1) | (592.4) | ||
NONCONTROLLING INTERESTS | 0 | 0 | ||
Total equity | (580.1) | (592.4) | ||
Total liabilities and shareholders' equity | 1,318.2 | 1,327.6 | ||
Other Non-Guarantor Subsidiaries of Valaris | ||||
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | 474.7 | 72.6 | 163.8 | 234.6 |
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 600.9 | 312 | ||
Accounts receivable from affiliates | 76.5 | 131.7 | ||
Other current assets | 488.2 | 354.3 | ||
Total current assets | 1,640.3 | 870.6 | ||
PROPERTY AND EQUIPMENT, AT COST | 18,366.3 | 15,390 | ||
Less accumulated depreciation | 2,940.2 | 2,807.7 | ||
Property and equipment, net | 15,426.1 | 12,582.3 | ||
Due from Joint Ventures, Noncurrent | 453.1 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 139.4 | |||
DUE FROM AFFILIATES | 2,865.3 | 2,715.1 | ||
Investment in and advances to Consolidated Subsidiaries | 0 | 0 | ||
OTHER ASSETS | 159.1 | 89.7 | ||
TOTAL ASSETS | 20,683.3 | 16,257.7 | ||
Accounts payable and accrued liabilities | 640.3 | 398.5 | ||
Accounts payable to affiliates | 2,062.5 | 1,926.9 | ||
Long-term Debt, Current Maturities | 395.7 | |||
Total current liabilities | 3,098.5 | 2,325.4 | ||
Due to Affiliate | 1,167.1 | 1,463 | ||
LONG-TERM DEBT | 2,420 | 682 | ||
OTHER LIABILITIES | 728.4 | 331.6 | ||
ENSCO SHAREHOLDERS' EQUITY | 13,267.7 | 11,458.3 | ||
NONCONTROLLING INTERESTS | 1.6 | (2.6) | ||
Total equity | 13,269.3 | 11,455.7 | ||
Total liabilities and shareholders' equity | 20,683.3 | 16,257.7 | ||
Consolidating Adjustments | ||||
Guarantor Obligations [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (2,196.2) | (2,164.3) | ||
Other current assets | 0 | 0 | ||
Total current assets | (2,196.2) | (2,164.3) | ||
PROPERTY AND EQUIPMENT, AT COST | 0 | 0 | ||
Less accumulated depreciation | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
DUE FROM AFFILIATES | (5,342.7) | (5,488.4) | ||
Investment in and advances to Consolidated Subsidiaries | (15,301.5) | (13,436.2) | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (22,840.4) | (21,088.9) | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Accounts payable to affiliates | (2,196.2) | (2,164.3) | ||
Long-term Debt, Current Maturities | 0 | |||
Total current liabilities | (2,196.2) | (2,164.3) | ||
Due to Affiliate | (5,342.7) | (5,488.4) | ||
LONG-TERM DEBT | 0 | 0 | ||
OTHER LIABILITIES | 0 | 0 | ||
ENSCO SHAREHOLDERS' EQUITY | (15,301.5) | (13,436.2) | ||
NONCONTROLLING INTERESTS | 0 | 0 | ||
Total equity | (15,301.5) | (13,436.2) | ||
Total liabilities and shareholders' equity | $ (22,840.4) | $ (21,088.9) |
Guarantee Of Registered Secur_7
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | $ (293.4) | $ (18) |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 931.9 | 0 |
Maturities of short-term investments | 339 | 599 |
Purchases of short-term investments | (145) | (414) |
Additions to property and equipment | (134.8) | (331.9) |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Other | 4.5 | 2.9 |
Net cash provided by (used in) investing activities of continuing operations | 995.6 | (144) |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 1,000 | |
Reduction of long-term borrowings | 0 | (771.2) |
Payments for Repurchase of Common Stock | (4.2) | (2) |
Cash dividends paid | (4.5) | (9) |
Payments of Debt Issuance Costs | 0 | 17 |
Payments for Other Fees | (8.7) | 0 |
Advances from affiliates | 0 | |
Other | (0.5) | (0.5) |
Net cash provided by (used in) financing activities | (17.9) | 200.3 |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.7) |
INCREASE IN CASH AND CASH EQUIVALENTS | 684 | 40.1 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 275.1 | 445.4 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 959.1 | 485.5 |
Valaris plc | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (79.9) | 28.3 |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 0 | |
Maturities of short-term investments | 339 | 599 |
Purchases of short-term investments | (145) | (414) |
Additions to property and equipment | 0 | 0 |
Sale of Affiliate Debt | 479 | |
Purchase of Affiliate Debt | 552.5 | |
Other | 2.5 | 0 |
Net cash provided by (used in) investing activities of continuing operations | 196.5 | 111.5 |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 1,000 | |
Reduction of long-term borrowings | (159.9) | |
Payments for Repurchase of Common Stock | (4.2) | (2) |
Cash dividends paid | (4.5) | (9) |
Payments of Debt Issuance Costs | 17 | |
Payments for Other Fees | 0 | |
Advances from affiliates | 174.5 | |
Advances from (to) affiliate | (831.5) | |
Other | (0.5) | 0 |
Net cash provided by (used in) financing activities | 165.3 | (19.4) |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
INCREASE IN CASH AND CASH EQUIVALENTS | 281.9 | 120.4 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 199.8 | 185.2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 481.7 | 305.6 |
ENSCO International Incorporated | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (117.5) | (87.8) |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Other | 0 | 0 |
Net cash provided by (used in) investing activities of continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 0 | |
Reduction of long-term borrowings | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 |
Cash dividends paid | 0 | 0 |
Payments of Debt Issuance Costs | 0 | |
Payments for Other Fees | 0 | |
Advances from affiliates | 117.5 | 87.8 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 117.5 | 87.8 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Pride International LLC | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (68.6) | (56.6) |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Other | 0 | 0 |
Net cash provided by (used in) investing activities of continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 0 | |
Reduction of long-term borrowings | (537.8) | |
Payments for Repurchase of Common Stock | 0 | 0 |
Cash dividends paid | 0 | 0 |
Payments of Debt Issuance Costs | 0 | |
Payments for Other Fees | 0 | |
Advances from affiliates | 68.6 | 584.9 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 68.6 | 47.1 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
INCREASE IN CASH AND CASH EQUIVALENTS | 0 | (9.5) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2.7 | 25.6 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2.7 | 16.1 |
Other Non-Guarantor Subsidiaries of Valaris | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (27.4) | 98.1 |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 931.9 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | |
Additions to property and equipment | (134.8) | (331.9) |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Other | 2 | 2.9 |
Net cash provided by (used in) investing activities of continuing operations | 799.1 | (329) |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 0 | |
Reduction of long-term borrowings | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 |
Cash dividends paid | 0 | 0 |
Payments of Debt Issuance Costs | 0 | |
Payments for Other Fees | (8.7) | |
Advances from affiliates | 158.8 | |
Advances from (to) affiliate | (360.6) | |
Other | (0.5) | |
Net cash provided by (used in) financing activities | (369.3) | 158.3 |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.7) |
INCREASE IN CASH AND CASH EQUIVALENTS | 402.1 | (70.8) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 72.6 | 234.6 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 474.7 | 163.8 |
Consolidating Adjustments | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | 0 | 0 |
INVESTING ACTIVITIES | ||
Cash Acquired from Acquisition | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Sale of Affiliate Debt | (479) | |
Purchase of Affiliate Debt | (552.5) | |
Other | 0 | 0 |
Net cash provided by (used in) investing activities of continuing operations | 0 | 73.5 |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Debt | 0 | |
Reduction of long-term borrowings | (73.5) | |
Payments for Repurchase of Common Stock | 0 | 0 |
Cash dividends paid | 0 | 0 |
Payments of Debt Issuance Costs | 0 | |
Payments for Other Fees | 0 | |
Advances from affiliates | 0 | |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | (73.5) |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 0 | $ 0 |