Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 23, 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 | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Valaris plc | |
Entity Central Index Key | 0000314808 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Shares, Shares Outstanding | 197,877,182 | |
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 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000314808 | |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 551.3 | $ 430.9 | $ 1,541.1 | $ 1,306.4 |
OPERATING EXPENSES | ||||
Contract drilling (exclusive of depreciation) | 496.5 | 327.1 | 1,329.4 | 996.6 |
Loss on impairment | 88.2 | 0 | 90.7 | 0 |
Depreciation | 163 | 120.6 | 445.9 | 356.5 |
General and administrative | 36.1 | 25.1 | 146.9 | 79.1 |
Total operating expenses | 783.8 | 472.8 | 2,012.9 | 1,432.2 |
EQUITY IN EARNINGS OF ARO | (3.7) | 0 | (3.1) | 0 |
OPERATING LOSS | (236.2) | (41.9) | (474.9) | (125.8) |
OTHER INCOME (EXPENSE) | ||||
Interest income | 6.7 | 3.6 | 22.1 | 10.5 |
Interest expense, net | (113.9) | (72.2) | (313.2) | (213.5) |
Other, net | 147.4 | (9.1) | 853.4 | (30.2) |
Other income (expense), net | 40.2 | (77.7) | 562.3 | (233.2) |
LOSS BEFORE INCOME TAXES | (196) | (119.6) | 87.4 | (359) |
PROVISION FOR INCOME TAXES | ||||
Current income tax expense (benefit) | 22.6 | (5.7) | 69.4 | 21.5 |
Deferred income tax expense (benefit) | (21.1) | 29 | (3.8) | 44.9 |
Total provision for income taxes | 1.5 | 23.3 | 65.6 | 66.4 |
LOSS FROM CONTINUING OPERATIONS | 21.8 | (425.4) | ||
LOSS FROM DISCONTINUED OPERATIONS, NET | 0 | (8.1) | ||
NET LOSS | (197.5) | (142.9) | 21.8 | (433.5) |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
NET LOSS ATTRIBUTABLE TO VALARIS | $ (197.1) | $ (145) | $ 18 | $ (436.1) |
LOSS PER SHARE - BASIC AND DILUTED | ||||
Continuing operations (in dollars per share) | $ 0.10 | $ (3.94) | ||
Discontinued operations (in dollars per share) | 0 | (0.08) | ||
Basic and diluted (in dollars per share) | $ (1) | $ (1.34) | $ 0.10 | $ (4.02) |
WEIGHTED-AVERAGE SHARES OUTSTANDING | ||||
Basic and Diluted (in shares) | 197.6 | 108.6 | 165.2 | 108.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (197.5) | $ (142.9) | $ 21.8 | $ (433.5) |
OTHER COMPREHENSIVE LOSS, NET | ||||
Net change in derivative fair value | (5.7) | (1.9) | (7.3) | (7.6) |
Reclassification of net losses on derivative instruments from other comprehensive loss into net loss | 4.9 | 0.7 | 8.3 | (2.2) |
Other | (0.2) | (0.1) | (0.3) | (0.4) |
NET OTHER COMPREHENSIVE LOSS | (1) | (1.3) | 0.7 | (10.2) |
COMPREHENSIVE LOSS | (198.5) | (144.2) | 22.5 | (443.7) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ (198.1) | $ (146.3) | $ 18.7 | $ (446.3) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 129.5 | $ 275.1 |
Short-term investments | 0 | 329 |
Accounts receivable, net | 567 | 344.7 |
Other current assets | 487.5 | 360.9 |
Total current assets | 1,184 | 1,309.7 |
PROPERTY AND EQUIPMENT, AT COST | 18,392.9 | 15,517 |
Less accumulated depreciation | 3,142.2 | 2,900.8 |
Property and equipment, net | 15,250.7 | 12,616.2 |
LONG-TERM NOTES RECEIVABLE FROM ARO | 452.9 | 0 |
INVESTMENT IN ARO | 138.2 | 0 |
OTHER ASSETS | 204.8 | 97.8 |
TOTAL ASSETS | 17,230.6 | 14,023.7 |
CURRENT LIABILITIES | ||
Accounts payable - trade | 326.4 | 210.5 |
Accrued liabilities and other | 407.7 | 318 |
Less: current maturities | 125.5 | 0 |
Total current liabilities | 859.6 | 528.5 |
Long-term Debt, Excluding Current Maturities | 6,042.3 | 5,010.4 |
OTHER LIABILITIES | 798.2 | 396 |
COMMITMENTS AND CONTINGENCIES | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Additional paid-in capital | 8,617.5 | 7,225 |
Retained earnings | 887.7 | 874.2 |
Accumulated other comprehensive income | 18.9 | 18.2 |
Treasury shares, at cost | (75.2) | (72.2) |
Total Valaris shareholders' equity | 9,531.4 | 8,091.4 |
NONCONTROLLING INTERESTS | (0.9) | (2.6) |
Total equity | 9,530.5 | 8,088.8 |
Total liabilities and shareholders' equity | 17,230.6 | 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 | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Common shares, value | $ 0.1 | $ 0.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2019$ / sharesshares | Sep. 30, 2019£ / sharesshares | Mar. 31, 2019$ / sharesshares | Mar. 31, 2019£ / sharesshares |
Treasury shares, shares held (in shares) | 7,900,000 | 7,900,000 | 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 | ||||
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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net loss | $ 21.8 | $ (433.5) |
Adjustments to reconcile net income (loss) to net cash used in operating activities of continuing operations: | ||
Gain on bargain purchase | (659.8) | (1.8) |
Depreciation | 445.9 | 356.5 |
(Gain) loss on extinguishment of debt | (194.1) | 19 |
Loss on impairment | 90.7 | 0 |
Share-based compensation expense | 28.7 | 21.6 |
Amortization, net | (18.1) | (30.7) |
Contributions to pension plans | (8) | 0 |
Deferred income tax expense (benefit) | (3.8) | 44.9 |
Contributions to pension plans | (8) | 0 |
Equity in earnings of ARO | 3.1 | 0 |
Loss from discontinued operations, net | 0 | 8.1 |
Other | 13.4 | (5.3) |
Changes in operating assets and liabilities | (147.3) | (61) |
Net cash used in operating activities of continuing operations | (427.5) | (82.2) |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 931.9 | 0 |
Maturities of short-term investments | 474 | 675 |
Additions to property and equipment | (174.2) | (378.7) |
Purchases of short-term investments | (145) | (669) |
Other | 4.9 | 10 |
Net cash provided by (used in) investing activities of continuing operations | 1,091.6 | (362.7) |
FINANCING ACTIVITIES | ||
Reduction of long-term borrowings | (928.1) | (771.2) |
Borrowings on credit facility | 175 | 0 |
Repayments of credit facility borrowings | (34.4) | 0 |
Debt solicitation fees | (9.4) | 0 |
Cash dividends paid | (4.5) | (13.4) |
Proceeds from issuance of senior notes | 0 | 1,000 |
Debt issuance costs | 0 | (17) |
Other | (7.7) | (4.7) |
Net cash provided by (used in) financing activities | (809.1) | 193.7 |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | (0.7) |
DECREASE IN CASH AND CASH EQUIVALENTS | (145.6) | (249.4) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 275.1 | 445.4 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 129.5 | $ 196 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 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 September 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 September 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 Financial Accounting Standards Board (the "FASB") issued ASU 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 Update 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 Update 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 Update 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. Recently issued accounting standards 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. Credit Losses - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("Update 2016-13") , which |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 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 September 30, 2019 was between approximately one month and three 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 from 30 to 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): September 30, 2019 December 31, 2018 Current contract assets $ 10.7 $ 4.0 Current contract liabilities (deferred revenue) $ 24.6 $ 56.9 Noncurrent contract liabilities (deferred revenue) $ 11.7 $ 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 0.3 — Increase due to cash received — 29.4 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (52.1) Decrease due to amortization of deferred revenue that was added during the period — (23.7) Decrease due to transfer to receivables during the period (2.0) — Balance as of September 30, 2019 $ 10.7 $ 36.3 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 $22.2 million and $23.5 million as of September 30, 2019 and December 31, 2018, respectively. During the three-month and nine-month periods ended September 30, 2019, amortization of such costs totaled $12.6 million and $33.7 million, respectively. During the three-month and nine-month periods ended September 30, 2018, amortization of such costs totaled $10.1 million and $26.0 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 $10.5 million and $13.6 million as of September 30, 2019 and December 31, 2018, respectively. During the three-month and nine-month periods ended September 30, 2019, amortization of such costs totaled $2.5 million and $8.1 million, respectively. During the three-month and nine-month periods ended September 30, 2018, amortization of such costs totaled $3.3 million and $9.6 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 September 30, 2019 is set forth in the table below (in millions): Remaining 2019 2020 2021 2022 and Thereafter Total Amortization of contract liabilities $ 12.1 $ 12.9 $ 7.2 $ 4.1 $ 36.3 Amortization of deferred costs $ 12.1 $ 15.9 $ 3.3 $ 1.4 $ 32.7 |
Rowan Transaction
Rowan Transaction | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Rowan Transaction | Rowan Transaction 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 (one of which is expected to commence drilling operations during the fourth quarter of 2019) and has plans to purchase up to 20 newbuild jackup rigs over an approximate 10 year period. 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 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): Amounts Recognized as of Merger Date Measurement Period Adjustments (1) Estimated Fair Value Assets: Cash and cash equivalents $ 931.9 $ — $ 931.9 Accounts receivable (2) 207.1 (2.6) 204.5 Other current assets 101.6 — 101.6 Long-term notes receivable from ARO 454.5 — 454.5 Investment in ARO 138.8 2.5 141.3 Property and equipment 2,989.8 (14.2) 2,975.6 Other assets 41.7 (1.8) 39.9 Liabilities: Accounts payable and accrued liabilities 259.4 (0.3) 259.1 Current portion of long-term debt 203.2 — 203.2 Long-term debt 1,910.9 — 1,910.9 Other liabilities 376.3 37.2 413.5 Net assets acquired 2,115.6 (53.0) 2,062.6 Less: Merger consideration (1,402.8) — (1,402.8) Estimated bargain purchase gain $ 712.8 $ (53.0) $ 659.8 (1) The measurement period adjustments reflect changes in the estimated fair values of certain assets and liabilities, primarily related to long-lived assets, deferred income taxes and uncertain tax positions. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Transaction Date and did not result from subsequent intervening events. These adjustments resulted in a $53.0 million decrease to the bargain purchase gain within current period earnings, which is included in other, net, in our condensed consolidated statement of operations for the three-month and nine-month periods ended September 30, 2019. (2) 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. 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 $0.2 million and $18.0 million for the three-month and nine-month periods ended September 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 additional 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 $1.3 million and $2.4 million for net asset amortization during the three-month and nine-month periods ended September 30, 2019, respectively. The remaining balance of intangible assets and liabilities of $13.3 million and $1.6 million, respectively, was included in other assets and other liabilities, respectively, on our condensed consolidated balance sheet as of September 30, 2019. These balances will be amortized to operating revenues over the respective remaining contract terms on a straight-line basis. As of September 30, 2019, the remaining terms of the underlying contracts is approximately 2.3 years. Amortization of these intangibles is expected to result in a reduction to revenue of $1.3 million, $5.1 million and $5.3 million in 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, a decrease of $100.0 million to Rowan's historical net deferred tax assets 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. During 2019, we received income tax assessments from Luxembourg tax authorities related to certain filing positions taken by Rowan for several of Rowan’s Luxembourg subsidiaries in prior years totaling approximately €142.0 million (approximately $155.0 million converted using the current period-end exchange rates). During the second quarter, we recognized liabilities of €47.0 million (approximately $51.0 million converted using the current period-end exchange rates) in connection with the Luxembourg assessments, which reflected the amount of the Rowan filing positions that we concluded, on a preliminary basis, we would not more-likely-than-not sustain. During the third quarter, as a result of our continued review and analysis of facts and circumstances that existed at the Transaction Date, we recognized additional liabilities of €46.0 million (approximately $50.0 million converted using the current period-end exchange rates) as measurement period adjustments. As a result, the amount recognized on our condensed consolidated balance sheet related to the Luxembourg income tax assessments totaled €93.0 million (approximately $101.0 million converted using the current period-end exchange rates) as of September 30, 2019. Our ongoing evaluation of the relevant facts and circumstances surrounding these positions may result in further revisions to this estimate, which could be material. Revenue and Earnings of Rowan Our condensed consolidated statements of operations for the three-month and nine-month periods ended September 30, 2019 included revenues of $138.9 million and $286.2 million and net losses of $31.2 million and $95.1 million f or the three-month and nine-month periods ended September 30, 2019, respectively. 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, (1) the amortization associated with acquired intangible assets and liabilities (2) a reduction in depreciation expense for adjustments to property and equipment (3) the amortization of premiums and discounts recorded on Rowan's debt (4) removal of the historical amortization of unrealized gains and losses related to Rowan's pension plans and (5) 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 Nine Months Ended 2019 (1) 2018 2019 (1) 2018 Revenues $ 552.0 $ 624.0 $ 1,729.5 $ 1,952.0 Net loss $ (151.1) $ (250.0) $ (795.2) $ (607.1) Loss per share - basic and diluted $ (0.53) $ (1.27) $ (3.14) $ (3.09) (1) Pro forma net loss and loss per share were adjusted to exclude an aggregate of $16.0 million and $85.4 million of transaction-related and integration costs incurred for the three-month and nine-month periods ended September 30, 2019, respectively. Additionally, pro forma net loss and loss per share exclude the measurement period adjustments and estimated gain on bargain purchase of $53.0 million and $659.8 million recognized during the three-month and nine-month periods ended September 30, 2019, respectively. |
Equity Method Investment In ARO
Equity Method Investment In ARO | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment In ARO | 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 owned seven jackup rigs as of the Transaction Date. 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 September 30, 2019, the carrying amount of the long-term notes receivable from ARO was $452.9 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 September 30, 2019 , eight of the rigs were operating under their contracts and the remaining rig, VALARIS JU-148, is expected to commence operations during the fourth quarter of 2019. Rowan and Saudi Aramco have agreed to take all steps necessary to ensure that ARO purchases 20 newbuild jackup rigs ratably over an approximate 10 year period. 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, ARO provides 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 rigs leased from us that operated during the three-month period ended September 30, 2019 and for the period from the Transaction Date through September 30, 2019, respectively. The contract drilling expenses, depreciation and general and administrative expenses presented below are also for the three-month period ended September 30, 2019 and the period from the Transaction Date through September 30, 2019, respectively. 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): Three Months Ended September 30, 2019 April 11 - September 30, 2019 Revenues $ 138.4 $ 262.2 Operating expenses Contract drilling (exclusive of depreciation) 92.7 171.7 Depreciation 14.6 26.9 General and administrative 8.8 13.9 Operating income 22.3 49.7 Other expense, net 9.9 18.8 Provision for income taxes 2.2 3.8 Net income $ 10.2 $ 27.1 September 30, 2019 Current assets $ 452.8 Non-current assets 887.1 Total assets $ 1,339.9 Current liabilities $ 232.4 Non-current liabilities 1,021.7 Total liabilities $ 1,254.1 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): Three Months Ended September 30, 2019 April 11 - September 30, 2019 50% interest in ARO net income $ 5.1 $ 13.6 Amortization of basis differences (8.8) (16.7) Equity in earnings of ARO $ (3.7) $ (3.1) Related-Party Transactions Revenues recognized by us related to the Lease Agreements, Transition Services Agreement and Secondment Agreement are as follows (in millions): Three Months Ended September 30, 2019 April 11 - September 30, 2019 Lease revenue $ 19.9 $ 37.0 Secondment revenue 17.9 33.5 Transition Services revenue 5.0 10.2 Total revenue from ARO (1) $ 42.8 $ 80.7 (1) All of the revenues presented above are included in our Other segment in our segment disclosures. See Note 15 for additional information. Amounts receivable from ARO related to the above items totaled $40.6 million as of September 30, 2019 and are included in accounts receivable, net, on our condensed consolidated balance sheet. Accounts payable to ARO totaled $3.0 million as of September 30, 2019. 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 VALARIS JU-147 and VALARIS JU-148. As of September 30, 2019, $14.3 million related to reimbursement of these expenditures is included in accounts receivable, net, on our condensed consolidated balance sheet. 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 that mature in 2027 and 2028. Interest is recognized as interest income in our condensed consolidated statement of operations and totaled $5.8 million and $10.9 million for the three-month period ended September 30, 2019 and for the period from the Transaction Date through September 30, 2019, respectively. As of September 30, 2019, we had interest receivable from ARO of $17.3 million, which is included in other current assets on our condensed consolidated balance sheet. The following table summarizes the maturity schedule of our notes receivable from ARO as of September 30, 2019 (in millions): Principal Amount October 2027 $ 275.2 October 2028 177.7 Total $ 452.9 Maximum Exposure to Loss 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. September 30, 2019 Total assets $ 663.3 Less: total liabilities 3.0 Maximum exposure to loss $ 660.3 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 Significant Other Observable Inputs Significant Unobservable Inputs Total As of September 30, 2019 Supplemental executive retirement plan assets $ 25.1 $ — $ — $ 25.1 Total financial assets $ 25.1 $ — $ — $ 25.1 Derivatives, net $ — $ (7.9) $ — $ (7.9) Total financial liabilities $ — $ (7.9) $ — $ (7.9) 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): September 30, December 31, Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 6.875% Senior notes due 2020 $ 125.5 $ 121.3 $ 127.5 $ 121.6 4.70% Senior notes due 2021 113.1 98.7 112.7 101.8 4.875% Senior notes due 2022 (2) 597.1 474.9 — — 3.00% Exchangeable senior notes due 2024 (1) 691.0 573.4 666.8 575.5 4.50% Senior notes due 2024 301.9 170.5 619.8 405.2 4.75% Senior notes due 2024 (2) 274.3 197.9 — — 8.00% Senior notes due 2024 296.0 195.4 337.0 273.7 7.375% Senior notes due 2025 (2) 328.1 214.1 — — 5.20% Senior notes due 2025 331.6 180.3 664.4 443.9 7.75% Senior notes due 2026 986.6 541.9 985.0 725.5 7.20% Debentures due 2027 111.6 70.5 149.3 109.1 7.875% Senior notes due 2040 373.7 155.3 375.0 223.2 5.40% Senior notes due 2042 (2) 262.3 192.2 — — 5.75% Senior notes due 2044 973.7 434.0 972.9 566.3 5.85% Senior notes due 2044 (2) 268.4 197.1 — — Amounts borrowed under credit facility (3) 132.9 140.6 — — Total debt $ 6,167.8 $ 3,958.1 $ 5,010.4 $ 3,545.8 Less: current maturities 125.5 121.3 — — Total long-term debt $ 6,042.3 $ 3,836.8 $ 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 $838.0 million and $836.3 million as of September 30, 2019 and December 31, 2018, respectively. (2) These senior notes were assumed by Valaris as a result of the Rowan Transaction. (3) Total outstanding borrowings under our credit facility are $140.6 million and are recorded net of $7.7 million of unamortized deferred financing cost on our condensed consolidated balance sheet. The estimated fair values of our senior notes and debentures were determined using quoted market prices, which are level 1 inputs. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-retirement Benefits | Pension and Other Post-retirement Benefits 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 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): Three Months Ended September 30, 2019 April 11 to September 30, 2019 Service cost (1) $ 0.5 $ 1.0 Interest cost (2) 7.7 13.9 Expected return on plan assets (2) (9.4) (17.6) Net periodic pension cost $ (1.2) $ (2.7) (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 September 30, 2019, we contributed $8.0 million to our pension and other post-retirement benefit plans and expect to make additional contributions to such plans totaling approximately $6.6 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 | 9 Months Ended |
Sep. 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 $7.9 million and $10.7 million associated with our derivatives were included on our condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018, respectively. All of our derivative instruments mature during the next 18 months. See Note 5 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 September 30, December 31, September 30, December 31, Derivatives Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ — $ .2 $ 7.0 $ 8.3 Foreign currency forward contracts - non-current (2) — — .4 .4 $ — $ .2 $ 7.4 $ 8.7 Derivatives Not Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .3 $ .4 $ .8 $ 2.6 Total $ .3 $ .6 $ 8.2 $ 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 September 30, 2019, we had cash flow hedges outstanding to exchange an aggregate $212.6 million for various foreign currencies, including $116.7 million for British pounds, $44.6 million for Australian dollars, $18.2 million for euros, $9.5 million for Singapore dollars, $16.5 million for Norwegian krone and $7.1 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 September 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 Interest rate lock contracts (3) $ — $ — $ 1.7 $ (.1) $ — $ — Foreign currency forward contracts (4) (5.7) (1.9) 3.2 (.6) — (.3) Total $ (5.7) $ (1.9) $ 4.9 $ (.7) $ — $ (.3) Nine Months Ended September 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) $ — $ — $ 1.8 $ (.2) $ — $ — Foreign currency forward contracts (5) (7.3) (7.6) 6.5 2.4 — (1.5) Total $ (7.3) $ (7.6) $ 8.3 $ 2.2 $ — $ (1.5) (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 on 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 three-month period ended September 30, 2019, $3.4 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the three-month period ended September 30, 2018, $0.8 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. (5) During the nine-month period ended September 30, 2019, $7.1 million of losses were reclassified from AOCI into contract drilling expense and $0.6 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the nine-month period ended September 30, 2018, $1.8 million of gains were reclassified from AOCI into contract drilling expense and $0.6 million 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 September 30, 2019, we held derivatives not designated as hedging instruments to exchange an aggregate $27.1 million for various foreign currencies, including $7.8 million for British pounds, $9.6 million for Nigerian Naira, $6.6 million for Israeli New Shekel and $3.1 million for Mexican pesos. Net losses of $2.3 million and net gains of $2.2 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 September 30, 2019 and 2018, respectively. Net losses of $7.6 million and net gains of $9.7 million associated with our derivatives not designated as hedging instruments were included in other, net, in our condensed consolidated statements of operations for the nine-month periods ended September 30, 2019 and 2018, respectively. As of September 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 $5.0 million. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of September 30, 2019 and December 31, 2018 consisted of the following, at cost (in millions): September 30, 2019 December 31, 2018 Drilling rigs and equipment $ 17,615.1 $ 14,542.5 Work-in-progress 574.6 779.2 Other 203.2 195.3 $ 18,392.9 $ 15,517.0 Impairment of Long-Lived Assets On a quarterly basis, we evaluate the carrying value of our property and equipment to identify events or changes in circumstances that indicate the carrying value may not be recoverable. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share We compute basic and diluted earnings (loss) per share in accordance with the two-class method. Net income (loss) attributable to Valaris used in our computations of basic and diluted earnings (loss) per share 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 income (loss) is calculated using the treasury stock method and excludes non-vested shares. During the three-month and nine-month periods ended September 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 earnings (loss) per share computations for the three-month and nine-month periods ended September 30, 2019 and 2018 (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations attributable to Valaris $ (197.1) $ (145.0) $ 18.0 $ (436.1) Income from continuing operations allocated to non-vested share awards (1) — (.2) (.6) (.4) Income (loss) from continuing operations attributable to Valaris shares $ (197.1) $ (145.2) $ 17.4 $ (436.5) (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 0.4 million and 0.3 million were excluded from the computation of diluted earnings (loss) per share for the three-month and nine-month periods ended September 30, 2019, respectively. Anti-dilutive share awards totaling 1.6 million and 1.7 million were excluded from the computation of diluted earnings (loss) per share for the three-month and nine-month periods ended September 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 earnings (loss) per share using the treasury stock method. Our average share price did not exceed the exchange price during the three-month or nine-month periods ended September 30, 2019 and 2018. |
Debt
Debt | 9 Months Ended |
Sep. 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, which was repaid at maturity in August 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 was $2.3 billion through September 2019 and $1.6 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 As of September 30, 2019, we had $140.6 million outstanding under our credit facility and no amounts outstanding as of December 31, 2018. Tender Offers On June 25, 2019, we commenced cash tender offers for certain series of senior notes issued by us and Ensco International Incorporated and Rowan Companies, Inc., our wholly-owned subsidiaries. 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 recognized a pre-tax gain from debt extinguishment of $194.1 million related to the tender offers, net of discounts, premiums and transaction costs. |
Shareholders Equity
Shareholders Equity | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Activity in our various shareholders' equity accounts for the nine-month periods ended September 30, 2019 and 2018 were as follows (in millions, except per share amounts): Shares Par Value Additional Retained AOCI Treasury Non-controlling 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 Net loss — — — (197.1) — — (.4) Equity issuance costs — — (.6) — — — — Repurchase of shares — — — — — (.2) — Share-based compensation cost — — 9.7 — — — — Distributions to noncontrolling interests — — — — — — (2.1) Net other comprehensive loss — — — — (1.0) — — BALANCE, September 30, 2019 205.8 $ 82.5 $ 8,617.5 $ 887.7 $ 18.9 $ (75.2) $ (0.9) 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) Net loss — — — (145.0) — — 2.1 Dividends paid ($0.04 per share) — — — (4.5) — — — Distributions to noncontrolling interests — — — — — — (2.0) Repurchase of shares — — (.1) — — (.1) — Share-based compensation cost — — 7.2 — — — — Net other comprehensive loss — — — — (1.3) — — BALANCE, September 30, 2018 115.2 $ 46.2 $ 7,216.6 $ 1,082.5 $ 19.2 $ (72.1) $ (2.2) 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 the Reverse Stock Split. All share and per-share amounts in these condensed consolidated financial statements have been retrospectively adjusted to reflect the Reverse Stock Split. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 nine-month periods ended September 30, 2019 and 2018. We used a discrete effective tax rate method to calculate income taxes for the three-month and nine-month periods ended September 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 September 30, 2019 was $18.4 million and was primarily attributable to restructuring transactions, the impairment of a drilling rig, changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years and other resolutions of prior year tax matters, partially offset by discrete tax expense resulting from gains on the repurchase of debt. Discrete income tax benefit for the three-month period ended September 30, 2018 was $7.9 million and was primarily attributable to an election under U.S. Treasury Regulations not to apply U.S. 2017 operating losses to deemed repatriated income, which provided for utilization of foreign tax credits that were subject to valuation allowance, and U.S. tax reform, partially offset by discrete tax expense related to the settlement of arbitration proceedings, rig sales 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 September 30, 2019 and 2018 was $19.9 million and $31.2 million, respectively. Discrete income tax benefit for the nine-month period ended September 30, 2019 was $19.0 million and was primarily attributable to restructuring transactions, the impairment of a drilling rig, changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years and other resolutions of prior year tax matters, partially offset by discrete tax expense resulting from gains on the repurchase of debt. Discrete income tax benefit for the nine-month period ended September 30, 2018 was $19.1 million and was primarily attributable to an election under U.S. Treasury Regulations not to apply U.S. 2017 operating losses to deemed repatriated income, which provided for utilization of foreign tax credits that were subject to valuation allowance, U.S. tax reform and a restructuring transaction, partially offset by discrete tax expense related to the settlement of arbitration proceedings, repurchase and redemption of senior notes, 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 nine-month periods ended September 30, 2019 and 2018 was $84.6 million and $85.5 million, respectively. Recent Tax Assessments During 2019, the Luxembourg tax authorities issued aggregate tax assessments totaling approximately €142.0 million (approximately $155.0 million converted using the current period-end exchange rates) related to tax years 2014, 2015 and 2016 for several of Rowan’s Luxembourg subsidiaries, which assessments accrue interest at the rate of 7.2% per annum. 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 totaling €93.0 million (approximately $101.0 million converted using the current period-end exchange rates), 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 2019, the Australian tax authorities issued aggregate tax assessments totaling approximately A$101 million (approximately $68 million converted using the current period-end exchange rate) plus interest related to the examination of certain of our tax returns for years 2011 through 2016. During the third quarter of 2019, we made a A$42 million payment (approximately $29 million at then-current exchange rates) to the Australian tax authorities to litigate the assessment, partially mitigating potential interest on any ultimate assessment outcomes. 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 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 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. Indonesian Well-Control Event 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 $14 million decrease in our backlog as of September 30, 2019. Indonesian authorities have initiated a preliminary investigation into the event and have contacted the customer, us and other parties involved in drilling the well for additional information. We are cooperating with the Indonesian authorities. We cannot predict the scope or ultimate outcome of this preliminary investigation or whether the Indonesian authorities will open a full investigation into our involvement in this matter. If the Indonesian authorities determine that we violated local laws in connection with this matter, we could be subject to penalties including environmental or other liabilities, which may have a material adverse impact on us. Middle East Dispute 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 strongly disagree 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. 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 September 30, 2019 totaled $90.0 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 September 30, 2019, we had not been required to make collateral deposits with respect to these agreements. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LeasesWe 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 The components of lease expense are as follows (in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Long-term operating lease cost $ 8.3 $ 21.5 Short-term operating lease cost 1.3 5.6 Sublease income (.7) (1.7) Total operating lease cost $ 8.9 $ 25.4 Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): September 30, 2019 Operating lease right-of-use assets (1) $ 64.9 Current lease liability (1) $ 23.4 Long-term lease liability (1) 53.5 Total operating lease liabilities $ 76.9 Weighted-average remaining lease term (in years) 5.1 Weighted-average discount rate (2) 8.18 % (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-month and nine-month periods ended September 30, 2019, cash paid for amounts included in the measurement of our operating lease liabilities was $7.5 million and $21.1 million, respectively. Right-of-use assets and lease liabilities recorded for leases commencing during the quarter ended September 30, 2019 totaled $1.4 million, primarily related to the commencement of an operating lease for certain office space in the U.K. Maturities of lease liabilities as of September 30, 2019 were as follows (in millions): Year Ending December 31, Total 2019 (excluding the nine months ended September 30, 2019) $ 8.4 2020 24.2 2021 17.6 2022 12.0 2023 10.4 Thereafter 22.2 Total lease payments $ 94.8 Less imputed interest 17.9 Total $ 76.9 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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, 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 nine-month periods ended September 30, 2019 and 2018 is presented below (in millions): Three Months Ended September 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 269.8 $ 217.8 $ 138.4 $ 63.7 $ (138.4) $ 551.3 Operating expenses Contract drilling (exclusive of depreciation) 250.3 213.5 92.7 32.7 (92.7) 496.5 Loss on impairment 88.2 — — — — 88.2 Depreciation 98.1 59.0 14.6 — (8.7) 163.0 General and administrative — — 8.8 — 27.3 36.1 Equity in earnings of ARO — — — — (3.7) (3.7) Operating income (loss) $ (166.8) $ (54.7) $ 22.3 $ 31.0 $ (68.0) $ (236.2) Property and equipment, net $ 10,187.5 $ 5,022.0 $ 652.5 $ — $ (611.3) $ 15,250.7 Three Months Ended September 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 241.8 $ 173.3 $ — $ 15.8 $ — $ 430.9 Operating expenses Contract drilling (exclusive of depreciation) 175.6 136.4 — 15.1 — 327.1 Depreciation 77.8 39.3 — — 3.5 120.6 General and administrative — — — — 25.1 25.1 Operating income (loss) $ (11.6) $ (2.4) $ — $ 0.7 $ (28.6) $ (41.9) Property and equipment, net $ 9,501.7 $ 3,190.2 $ — $ — $ 39.7 $ 12,731.6 Nine Months Ended September 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 798.1 $ 604.0 $ 262.2 $ 139.0 $ (262.2) $ 1,541.1 Operating expenses Contract drilling (exclusive of depreciation) 681.3 561.1 171.7 87.0 (171.7) 1,329.4 Loss on impairment 88.2 — — 2.5 90.7 Depreciation 281.3 151.4 26.9 — (13.7) 445.9 General and administrative — — 13.9 — 133.0 146.9 Equity in earnings of ARO — — — — (3.1) (3.1) Operating income (loss) $ (252.7) $ (108.5) $ 49.7 $ 52.0 $ (215.4) $ (474.9) Property and equipment, net $ 10,187.5 $ 5,022.0 $ 652.5 $ — $ (611.3) $ 15,250.7 Nine Months Ended September 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 785.7 $ 475.4 $ — $ 45.3 $ — $ 1,306.4 Operating expenses Contract drilling (exclusive of depreciation) 564.4 390.1 — 42.1 — 996.6 Depreciation 233.9 112.3 — — 10.3 356.5 General and administrative — — — — 79.1 79.1 Operating income (loss) $ (12.6) $ (27.0) $ — $ 3.2 $ (89.4) (125.8) Property and equipment, net $ 9,501.7 $ 3,190.2 $ — $ — $ 39.7 12,731.6 Information about Geographic Areas As of September 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 11 8 — 19 — Europe & Mediterranean 6 15 — 21 — Middle East & Africa 5 13 9 27 7 Asia & Pacific Rim 3 7 — 10 — Asia & Pacific Rim (under construction) 2 — — 2 — Held for Sale 1 1 — 2 — Total 28 44 9 81 7 (1) The rigs included in the "Other" segment represent the nine rigs leased to ARO. See Note 4 for additional information. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 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): September 30, December 31, Trade $ 518.7 $ 301.7 Other 56.1 46.4 574.8 348.1 Allowance for doubtful accounts (7.8) (3.4) $ 567.0 $ 344.7 Other current assets consisted of the following (in millions): September 30, December 31, Materials and supplies $ 347.1 $ 268.1 Prepaid taxes 59.2 35.0 Deferred costs 25.2 23.5 Prepaid expenses 17.3 15.2 Assets held-for-sale 8.9 — Other 29.8 19.1 $ 487.5 $ 360.9 Other assets consisted of the following (in millions): September 30, December 31, Right-of-use assets $ 64.9 $ — Deferred tax assets 42.7 29.4 Tax receivables 36.6 8.4 Supplemental executive retirement plan assets 25.1 27.2 Intangible assets 13.4 2.5 Deferred costs 10.5 21.5 Other 11.6 8.8 $ 204.8 $ 97.8 Accrued liabilities and other consisted of the following (in millions): September 30, December 31, Personnel costs $ 117.9 $ 82.5 Accrued interest 99.0 100.6 Income and other taxes payable 65.3 36.9 Pension and other post-retirement benefits 34.1 — Deferred revenue 24.6 56.9 Lease liabilities 23.4 — Derivative liabilities 7.8 10.9 Accrued rig holding costs 7.2 14.3 Other 28.4 15.9 $ 407.7 $ 318.0 Other liabilities consisted of the following (in millions): September 30, December 31, Unrecognized tax benefits (inclusive of interest and penalties) $ 313.5 $ 177.0 Pension and other post-retirement benefits 194.5 — Deferred tax liabilities 88.4 70.7 Lease liabilities 53.5 — Intangible liabilities 52.7 53.5 Supplemental executive retirement plan liabilities 25.6 28.1 Personnel costs 21.0 25.1 Deferred revenue 11.7 20.5 Deferred rent — 11.7 Other 37.3 9.4 $ 798.2 $ 396.0 Accumulated other comprehensive income consisted of the following (in millions): September 30, December 31, Derivative instruments $ 13.6 $ 12.6 Currency translation adjustment 7.0 7.3 Other (1.7) (1.7) $ 18.9 $ 18.2 Concentration of Risk We are exposed to credit risk related to our receivables from customers, our cash and cash equivalents 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 nine-month periods ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Saudi Aramco (1) 16 % 11 % 12 % 10 % Total (2) 15 % 14 % 15 % 14 % BP (3) 10 % 5 % 8 % 7 % INPEX (4) 7 % 10 % 7 % 7 % Other 52 % 60 % 58 % 62 % 84 % 89 % 88 % 90 % (1) During the three-month and nine-month periods ended September 30, 2019 and 2018, all revenues were attributable to our Jackups segment. (2) During the three-month and nine-month periods ended September 30, 2019, 90% and 93% 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 nine-month periods ended September 30, 2018, all revenues were attributable to the Floaters segment. (3) During the three-month period ended September 30, 2019, 43% of the revenues provided by BP were attributable to our Jackups segment, 17% of the revenues were attributable to our Floaters segment and the remaining was attributable to our Other segment. During the three-month period ended September 30, 2018, 27% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our Other segment. During the nine-month period ended September 30, 2019, 41% of the revenues provided by BP were attributable to our Jackups segment, 16% of the revenues were attributable to our Floaters segment and the remainder was attributable to our Other segment. During the nine-month period ended September 30, 2018, 33% of the revenues provided by BP were attributable to our Floaters segment, 18% of the revenues were attributable to our Jackups segment and the remainder was attributable to our Other segment. (4) During the three-month and nine-month periods ended September 30, 2019 and 2018, all revenues were attributable to our Floaters segment. Consolidated revenues by region for the three-month and nine-month periods ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Saudi Arabia (1) $ 90.3 $ 49.0 $ 226.9 $ 131.8 U.S. Gulf of Mexico (2) 83.1 59.3 231.2 172.4 Angola (3) 72.1 76.2 210.8 209.5 United Kingdom (4) 59.6 55.4 157.2 155.7 Australia (5) 51.6 75.1 189.0 207.7 Other 194.6 115.9 526.0 429.3 $ 551.3 $ 430.9 $ 1,541.1 $ 1,306.4 (1) During the three-month and nine-month periods ended September 30, 2019, 58% and 69% of the revenues earned in Saudi Arabia were attributable to our Jackups segment, respectively. The remaining revenues were attributable to our Other segment and related to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. During the three-month and nine-month periods ended September 30, 2018, all revenues earned in Saudi Arabia were attributable to our Jackups segment. (2) During the three-month period ended September 30, 2019, 52% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 22% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the three-month period ended September 30, 2018, 35% of the revenues earned in 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 Other segment. During the nine-month period ended September 30, 2019, 40% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 35% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the nine-month period ended September 30, 2018, 36% of the revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 38% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. (3) During the three-month periods ended September 30, 2019 and 2018, 86% and 82% of the revenues earned in Angola were attributable to our Floaters segment, respectively, and the remaining revenues were attributable to our Jackups segment. During the nine-month periods ended September 30, 2019 and 2018, 87% of the revenues earned in Angola were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment. (4) During the three-month and nine-month periods ended September 30, 2019 and 2018, all revenues earned in the United Kingdom were attributable to our Jackups segment. (5) During the three-month periods ended September 30, 2019 and 2018, 99% and 87% of the revenues earned in Australia, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the nine-month periods ended September 30, 2019 and 2018, 95% and 94% of the revenues earned in Australia were attributable to our Floaters segment, respectively, and the remaining revenues were attributable to our Jackups segment. |
Guarantee Of Registered Securit
Guarantee Of Registered Securities | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees [Abstract] | |
Guarantee Of Registered Securities | Guarantee of Registered Securities In connection with the Pride International LLC ("Pride") 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 $422.8 million as of September 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 $112.1 million as of September 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 nine-month periods ended September 30, 2019 and 2018; the unaudited condensed consolidating statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2019 and 2018; the condensed consolidating balance sheets as of September 30, 2019 (unaudited) and December 31, 2018; and the unaudited condensed consolidating statements of cash flows for the nine-month periods ended September 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 September 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 15.7 $ 53.0 $ — $ 588.8 $ (106.2) $ 551.3 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 19.3 45.3 — 538.1 (106.2) 496.5 Loss on impairment — — — 88.2 — 88.2 Depreciation — 7.7 — 155.3 — 163.0 General and administrative 9.7 .1 — 26.3 — 36.1 Total operating expenses 29.0 53.1 — 807.9 (106.2) 783.8 EQUITY IN EARNINGS OF ARO — — — (3.7) — (3.7) OPERATING LOSS (13.3) (.1) — (222.8) — (236.2) OTHER INCOME (EXPENSE), NET 94.7 (5.6) (20.2) (33.0) 4.3 40.2 INCOME (LOSS) BEFORE INCOME TAXES 81.4 (5.7) (20.2) (255.8) 4.3 (196.0) INCOME TAX PROVISION — (18.4) — 19.9 — 1.5 EQUITY LOSSES IN AFFILIATES, NET OF TAX (278.5) (40.2) (68.0) — 386.7 — NET LOSS (197.1) (27.5) (88.2) (275.7) 391.0 (197.5) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — .4 — .4 NET LOSS ATTRIBUTABLE TO VALARIS $ (197.1) $ (27.5) $ (88.2) $ (275.3) $ 391.0 $ (197.1) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 12.1 $ 40.7 $ — $ 459.2 $ (81.1) $ 430.9 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 15.2 36.4 — 356.6 (81.1) 327.1 Depreciation — 3.6 — 117.0 — 120.6 General and administrative 10.5 1.9 — 12.7 — 25.1 OPERATING LOSS (13.6) (1.2) — (27.1) — (41.9) OTHER EXPENSE, NET (.6) (32.6) (19.5) (29.0) 4.0 (77.7) LOSS BEFORE INCOME TAXES (14.2) (33.8) (19.5) (56.1) 4.0 (119.6) INCOME TAX PROVISION — 9.5 — 13.8 — 23.3 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (130.8) 28.2 23.1 — 79.5 — NET INCOME (LOSS) (145.0) (15.1) 3.6 (69.9) 83.5 (142.9) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.1) — (2.1) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (145.0) $ (15.1) $ 3.6 $ (72.0) $ 83.5 $ (145.0) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Nine Months Ended September 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 47.0 $ 128.6 $ — $ 1,627.1 $ (261.6) $ 1,541.1 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 49.3 112.8 — 1,428.9 (261.6) 1,329.4 Loss on impairment — — — 90.7 — 90.7 Depreciation — 15.4 — 430.5 — 445.9 General and administrative 71.0 .3 — 75.6 — 146.9 Total operating expenses 120.3 128.5 — 2,025.7 (261.6) 2,012.9 EQUITY IN EARNINGS OF ARO — — — (3.1) — (3.1) OPERATING INCOME (LOSS) (73.3) 0.1 — (401.7) — (474.9) OTHER INCOME (EXPENSE), NET 773.5 (36.6) (61.0) (126.3) 12.7 562.3 INCOME (LOSS) BEFORE INCOME TAXES 700.2 (36.5) (61.0) (528.0) 12.7 87.4 INCOME TAX PROVISION — 10.6 — 55.0 — 65.6 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (682.2) 35.1 (14.9) — 662.0 — NET INCOME (LOSS) 18.0 (12.0) (75.9) (583.0) 674.7 21.8 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.8) — (3.8) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 18.0 $ (12.0) $ (75.9) $ (586.8) $ 674.7 $ 18.0 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Nine Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 36.7 $ 120.8 $ — $ 1,387.0 $ (238.1) $ 1,306.4 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 41.6 109.2 — 1,083.9 (238.1) 996.6 Depreciation — 10.6 — 345.9 — 356.5 General and administrative 31.0 2.2 — 45.9 — 79.1 OPERATING LOSS (35.9) (1.2) — (88.7) — (125.8) OTHER INCOME (EXPENSE), NET (0.1) (101.1) (69.5) (85.9) 23.4 (233.2) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (36.0) (102.3) (69.5) (174.6) 23.4 (359.0) INCOME TAX PROVISION — 32.4 — 34.0 — 66.4 DISCONTINUED OPERATIONS, NET — — — (8.1) — (8.1) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (400.1) 77.7 69.1 — 253.3 — NET LOSS (436.1) (57.0) (0.4) (216.7) 276.7 (433.5) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.6) — (2.6) NET LOSS ATTRIBUTABLE TO VALARIS $ (436.1) $ (57.0) $ (.4) $ (219.3) $ 276.7 $ (436.1) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Three Months Ended September 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (197.1) $ (27.5) $ (88.2) $ (275.7) $ 391.0 $ (197.5) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (5.7) — — — (5.7) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 4.9 — — — 4.9 Other — — — (.2) — (.2) NET OTHER COMPREHENSIVE LOSS — (.8) — (.2) — (1.0) COMPREHENSIVE LOSS (197.1) (28.3) (88.2) (275.9) 391.0 (198.5) COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — .4 — .4 COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (197.1) $ (28.3) $ (88.2) $ (275.5) $ 391.0 $ (198.1) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 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) $ (145.0) $ (15.1) $ 3.6 $ (69.9) $ 83.5 $ (142.9) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (1.9) — — — (1.9) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — .7 — — — .7 Other — — — (.1) — (.1) NET OTHER COMPREHENSIVE LOSS — (1.2) — (.1) — (1.3) COMPREHENSIVE INCOME (LOSS) (145.0) (16.3) 3.6 (70.0) 83.5 (144.2) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.1) — (2.1) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (145.0) $ (16.3) $ 3.6 $ (72.1) $ 83.5 $ (146.3) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 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) $ 18.0 $ (12.0) $ (75.9) $ (583.0) $ 674.7 $ 21.8 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — (7.3) — — — (7.3) Reclassification of net gains on derivative instruments from other comprehensive income (loss) to net income (loss) — 8.3 — — — 8.3 Other — — — (.3) — (.3) NET OTHER COMPREHENSIVE INCOME (LOSS) — 1.0 — (.3) — .7 COMPREHENSIVE INCOME (LOSS) 18.0 (11.0) (75.9) (583.3) 674.7 22.5 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.8) — (3.8) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 18.0 $ (11.0) $ (75.9) $ (587.1) $ 674.7 $ 18.7 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Nine Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (436.1) $ (57.0) $ (.4) $ (216.7) $ 276.7 $ (433.5) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (7.6) — — — (7.6) Reclassification of net gains on derivative instruments from other comprehensive loss into net loss — (2.2) — — — (2.2) Other — — — (.4) — (.4) NET OTHER COMPREHENSIVE LOSS — (9.8) — (.4) — (10.2) COMPREHENSIVE LOSS (436.1) (66.8) (.4) (217.1) 276.7 (443.7) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.6) — (2.6) COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (436.1) $ (66.8) $ (.4) $ (219.7) $ 276.7 $ (446.3) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS September 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 $ 72.5 $ — $ — $ 57.0 $ — $ 129.5 Short-term investments — — — — — — Accounts receivable, net 2.0 25.4 — 539.6 — 567.0 Accounts receivable from affiliates 3,282.0 372.2 2.0 280.5 (3,936.7) — Other — 8.9 — 478.6 — 487.5 Total current assets 3,356.5 406.5 2.0 1,355.7 (3,936.7) 1,184.0 PROPERTY AND EQUIPMENT, AT COST 1.8 123.2 — 18,267.9 — 18,392.9 Less accumulated depreciation 1.8 82.8 — 3,057.6 — 3,142.2 Property and equipment, net — 40.4 — 15,210.3 — 15,250.7 LONG-TERM NOTES RECEIVABLE FROM ARO — — — 452.9 — 452.9 INVESTMENT IN ARO — — — 138.2 — 138.2 DUE FROM AFFILIATES 1,100.0 — 38.9 2,590.3 (3,729.2) — INVESTMENTS IN AFFILIATES 9,934.2 776.1 1,184.9 — (11,895.2) — OTHER ASSETS 1.5 — — 203.3 — 204.8 $ 14,392.2 $ 1,223.0 $ 1,225.8 $ 19,950.7 $ (19,561.1) $ 17,230.6 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 81.6 $ 22.1 $ 4.7 $ 625.7 $ — $ 734.1 Accounts payable to affiliates 213.7 112.9 796.8 2,813.3 (3,936.7) — Current maturities of long-term debt — — 125.5 — — 125.5 Total current liabilities 295.3 135.0 927.0 3,439.0 (3,936.7) 859.6 DUE TO AFFILIATES 1,454.3 542.4 593.6 1,138.9 (3,729.2) — LONG-TERM DEBT 3,122.7 111.7 373.6 2,434.3 — 6,042.3 OTHER LIABILITIES (10.6) 56.0 — 752.8 — 798.2 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 9,530.5 377.9 (668.4) 12,186.6 (11,895.2) 9,531.4 NONCONTROLLING INTERESTS — — — (.9) — (.9) Total equity (deficit) 9,530.5 377.9 (668.4) 12,185.7 (11,895.2) 9,530.5 $ 14,392.2 $ 1,223.0 $ 1,225.8 $ 19,950.7 $ (19,561.1) $ 17,230.6 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 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 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 Financial Accounting Standards Board (the "FASB") issued ASU 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 Update 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 Update 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 Update 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. Recently issued accounting standards 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. Credit Losses - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("Update 2016-13") , which |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | The following table summarizes our contract assets and contract liabilities (in millions): September 30, 2019 December 31, 2018 Current contract assets $ 10.7 $ 4.0 Current contract liabilities (deferred revenue) $ 24.6 $ 56.9 Noncurrent contract liabilities (deferred revenue) $ 11.7 $ 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 0.3 — Increase due to cash received — 29.4 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (52.1) Decrease due to amortization of deferred revenue that was added during the period — (23.7) Decrease due to transfer to receivables during the period (2.0) — Balance as of September 30, 2019 $ 10.7 $ 36.3 |
Expected Future Amortization of Contract Liabilities | Expected future amortization of our contract liabilities and deferred costs recorded as of September 30, 2019 is set forth in the table below (in millions): Remaining 2019 2020 2021 2022 and Thereafter Total Amortization of contract liabilities $ 12.1 $ 12.9 $ 7.2 $ 4.1 $ 36.3 Amortization of deferred costs $ 12.1 $ 15.9 $ 3.3 $ 1.4 $ 32.7 |
Rowan Transaction (Tables)
Rowan Transaction (Tables) | 9 Months Ended |
Sep. 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): Amounts Recognized as of Merger Date Measurement Period Adjustments (1) Estimated Fair Value Assets: Cash and cash equivalents $ 931.9 $ — $ 931.9 Accounts receivable (2) 207.1 (2.6) 204.5 Other current assets 101.6 — 101.6 Long-term notes receivable from ARO 454.5 — 454.5 Investment in ARO 138.8 2.5 141.3 Property and equipment 2,989.8 (14.2) 2,975.6 Other assets 41.7 (1.8) 39.9 Liabilities: Accounts payable and accrued liabilities 259.4 (0.3) 259.1 Current portion of long-term debt 203.2 — 203.2 Long-term debt 1,910.9 — 1,910.9 Other liabilities 376.3 37.2 413.5 Net assets acquired 2,115.6 (53.0) 2,062.6 Less: Merger consideration (1,402.8) — (1,402.8) Estimated bargain purchase gain $ 712.8 $ (53.0) $ 659.8 (1) The measurement period adjustments reflect changes in the estimated fair values of certain assets and liabilities, primarily related to long-lived assets, deferred income taxes and uncertain tax positions. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Transaction Date and did not result from subsequent intervening events. These adjustments resulted in a $53.0 million decrease to the bargain purchase gain within current period earnings, which is included in other, net, in our condensed consolidated statement of operations for the three-month and nine-month periods ended September 30, 2019. (2) Gross contractual amounts receivable totaled $208.3 million as of the Transaction Date. |
Unaudited Pro Forma Impact | 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, (1) the amortization associated with acquired intangible assets and liabilities (2) a reduction in depreciation expense for adjustments to property and equipment (3) the amortization of premiums and discounts recorded on Rowan's debt (4) removal of the historical amortization of unrealized gains and losses related to Rowan's pension plans and (5) 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 Nine Months Ended 2019 (1) 2018 2019 (1) 2018 Revenues $ 552.0 $ 624.0 $ 1,729.5 $ 1,952.0 Net loss $ (151.1) $ (250.0) $ (795.2) $ (607.1) Loss per share - basic and diluted $ (0.53) $ (1.27) $ (3.14) $ (3.09) (1) Pro forma net loss and loss per share were adjusted to exclude an aggregate of $16.0 million and $85.4 million of transaction-related and integration costs incurred for the three-month and nine-month periods ended September 30, 2019, respectively. Additionally, pro forma net loss and loss per share exclude the measurement period adjustments and estimated gain on bargain purchase of $53.0 million and $659.8 million recognized during the three-month and nine-month periods ended September 30, 2019, respectively. |
Equity Method Investment In A_2
Equity Method Investment In ARO (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Summarized financial information for ARO is as follows (in millions): Three Months Ended September 30, 2019 April 11 - September 30, 2019 Revenues $ 138.4 $ 262.2 Operating expenses Contract drilling (exclusive of depreciation) 92.7 171.7 Depreciation 14.6 26.9 General and administrative 8.8 13.9 Operating income 22.3 49.7 Other expense, net 9.9 18.8 Provision for income taxes 2.2 3.8 Net income $ 10.2 $ 27.1 September 30, 2019 Current assets $ 452.8 Non-current assets 887.1 Total assets $ 1,339.9 Current liabilities $ 232.4 Non-current liabilities 1,021.7 Total liabilities $ 1,254.1 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): Three Months Ended September 30, 2019 April 11 - September 30, 2019 50% interest in ARO net income $ 5.1 $ 13.6 Amortization of basis differences (8.8) (16.7) Equity in earnings of ARO $ (3.7) $ (3.1) |
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. September 30, 2019 Total assets $ 663.3 Less: total liabilities 3.0 Maximum exposure to loss $ 660.3 |
Schedule of Notes Receivable | The following table summarizes the maturity schedule of our notes receivable from ARO as of September 30, 2019 (in millions): Principal Amount October 2027 $ 275.2 October 2028 177.7 Total $ 452.9 |
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): Three Months Ended September 30, 2019 April 11 - September 30, 2019 Lease revenue $ 19.9 $ 37.0 Secondment revenue 17.9 33.5 Transition Services revenue 5.0 10.2 Total revenue from ARO (1) $ 42.8 $ 80.7 (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) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
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 Significant Other Observable Inputs Significant Unobservable Inputs Total As of September 30, 2019 Supplemental executive retirement plan assets $ 25.1 $ — $ — $ 25.1 Total financial assets $ 25.1 $ — $ — $ 25.1 Derivatives, net $ — $ (7.9) $ — $ (7.9) Total financial liabilities $ — $ (7.9) $ — $ (7.9) 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) |
Carrying and Fair Values of Long-Term Debt Instruments | The carrying values and estimated fair values of our long-term debt instruments were as follows (in millions): September 30, December 31, Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 6.875% Senior notes due 2020 $ 125.5 $ 121.3 $ 127.5 $ 121.6 4.70% Senior notes due 2021 113.1 98.7 112.7 101.8 4.875% Senior notes due 2022 (2) 597.1 474.9 — — 3.00% Exchangeable senior notes due 2024 (1) 691.0 573.4 666.8 575.5 4.50% Senior notes due 2024 301.9 170.5 619.8 405.2 4.75% Senior notes due 2024 (2) 274.3 197.9 — — 8.00% Senior notes due 2024 296.0 195.4 337.0 273.7 7.375% Senior notes due 2025 (2) 328.1 214.1 — — 5.20% Senior notes due 2025 331.6 180.3 664.4 443.9 7.75% Senior notes due 2026 986.6 541.9 985.0 725.5 7.20% Debentures due 2027 111.6 70.5 149.3 109.1 7.875% Senior notes due 2040 373.7 155.3 375.0 223.2 5.40% Senior notes due 2042 (2) 262.3 192.2 — — 5.75% Senior notes due 2044 973.7 434.0 972.9 566.3 5.85% Senior notes due 2044 (2) 268.4 197.1 — — Amounts borrowed under credit facility (3) 132.9 140.6 — — Total debt $ 6,167.8 $ 3,958.1 $ 5,010.4 $ 3,545.8 Less: current maturities 125.5 121.3 — — Total long-term debt $ 6,042.3 $ 3,836.8 $ 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 $838.0 million and $836.3 million as of September 30, 2019 and December 31, 2018, respectively. (2) These senior notes were assumed by Valaris as a result of the Rowan Transaction. (3) Total outstanding borrowings under our credit facility are $140.6 million and are recorded net of $7.7 million of unamortized deferred financing cost on our condensed consolidated balance sheet. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows (in millions): Three Months Ended September 30, 2019 April 11 to September 30, 2019 Service cost (1) $ 0.5 $ 1.0 Interest cost (2) 7.7 13.9 Expected return on plan assets (2) (9.4) (17.6) Net periodic pension cost $ (1.2) $ (2.7) (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) | 9 Months Ended |
Sep. 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 September 30, December 31, September 30, December 31, Derivatives Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ — $ .2 $ 7.0 $ 8.3 Foreign currency forward contracts - non-current (2) — — .4 .4 $ — $ .2 $ 7.4 $ 8.7 Derivatives Not Designated as Hedging Instruments Foreign currency forward contracts - current (1) $ .3 $ .4 $ .8 $ 2.6 Total $ .3 $ .6 $ 8.2 $ 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 September 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 Interest rate lock contracts (3) $ — $ — $ 1.7 $ (.1) $ — $ — Foreign currency forward contracts (4) (5.7) (1.9) 3.2 (.6) — (.3) Total $ (5.7) $ (1.9) $ 4.9 $ (.7) $ — $ (.3) Nine Months Ended September 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) $ — $ — $ 1.8 $ (.2) $ — $ — Foreign currency forward contracts (5) (7.3) (7.6) 6.5 2.4 — (1.5) Total $ (7.3) $ (7.6) $ 8.3 $ 2.2 $ — $ (1.5) (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 on 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 three-month period ended September 30, 2019, $3.4 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the three-month period ended September 30, 2018, $0.8 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. (5) During the nine-month period ended September 30, 2019, $7.1 million of losses were reclassified from AOCI into contract drilling expense and $0.6 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the nine-month period ended September 30, 2018, $1.8 million of gains were reclassified from AOCI into contract drilling expense and $0.6 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment as of September 30, 2019 and December 31, 2018 consisted of the following, at cost (in millions): September 30, 2019 December 31, 2018 Drilling rigs and equipment $ 17,615.1 $ 14,542.5 Work-in-progress 574.6 779.2 Other 203.2 195.3 $ 18,392.9 $ 15,517.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 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 earnings (loss) per share computations for the three-month and nine-month periods ended September 30, 2019 and 2018 (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Income (loss) from continuing operations attributable to Valaris $ (197.1) $ (145.0) $ 18.0 $ (436.1) Income from continuing operations allocated to non-vested share awards (1) — (.2) (.6) (.4) Income (loss) from continuing operations attributable to Valaris shares $ (197.1) $ (145.2) $ 17.4 $ (436.5) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity [Abstract] | |
Schedule Of Activity In Our Various Shareholders Equity | Activity in our various shareholders' equity accounts for the nine-month periods ended September 30, 2019 and 2018 were as follows (in millions, except per share amounts): Shares Par Value Additional Retained AOCI Treasury Non-controlling 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 Net loss — — — (197.1) — — (.4) Equity issuance costs — — (.6) — — — — Repurchase of shares — — — — — (.2) — Share-based compensation cost — — 9.7 — — — — Distributions to noncontrolling interests — — — — — — (2.1) Net other comprehensive loss — — — — (1.0) — — BALANCE, September 30, 2019 205.8 $ 82.5 $ 8,617.5 $ 887.7 $ 18.9 $ (75.2) $ (0.9) 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) Net loss — — — (145.0) — — 2.1 Dividends paid ($0.04 per share) — — — (4.5) — — — Distributions to noncontrolling interests — — — — — — (2.0) Repurchase of shares — — (.1) — — (.1) — Share-based compensation cost — — 7.2 — — — — Net other comprehensive loss — — — — (1.3) — — BALANCE, September 30, 2018 115.2 $ 46.2 $ 7,216.6 $ 1,082.5 $ 19.2 $ (72.1) $ (2.2) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows (in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Long-term operating lease cost $ 8.3 $ 21.5 Short-term operating lease cost 1.3 5.6 Sublease income (.7) (1.7) Total operating lease cost $ 8.9 $ 25.4 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): September 30, 2019 Operating lease right-of-use assets (1) $ 64.9 Current lease liability (1) $ 23.4 Long-term lease liability (1) 53.5 Total operating lease liabilities $ 76.9 Weighted-average remaining lease term (in years) 5.1 Weighted-average discount rate (2) 8.18 % (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. |
Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2019 were as follows (in millions): Year Ending December 31, Total 2019 (excluding the nine months ended September 30, 2019) $ 8.4 2020 24.2 2021 17.6 2022 12.0 2023 10.4 Thereafter 22.2 Total lease payments $ 94.8 Less imputed interest 17.9 Total $ 76.9 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Schedule Of Segment Reporting Information | Segment information for the three-month and nine-month periods ended September 30, 2019 and 2018 is presented below (in millions): Three Months Ended September 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 269.8 $ 217.8 $ 138.4 $ 63.7 $ (138.4) $ 551.3 Operating expenses Contract drilling (exclusive of depreciation) 250.3 213.5 92.7 32.7 (92.7) 496.5 Loss on impairment 88.2 — — — — 88.2 Depreciation 98.1 59.0 14.6 — (8.7) 163.0 General and administrative — — 8.8 — 27.3 36.1 Equity in earnings of ARO — — — — (3.7) (3.7) Operating income (loss) $ (166.8) $ (54.7) $ 22.3 $ 31.0 $ (68.0) $ (236.2) Property and equipment, net $ 10,187.5 $ 5,022.0 $ 652.5 $ — $ (611.3) $ 15,250.7 Three Months Ended September 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 241.8 $ 173.3 $ — $ 15.8 $ — $ 430.9 Operating expenses Contract drilling (exclusive of depreciation) 175.6 136.4 — 15.1 — 327.1 Depreciation 77.8 39.3 — — 3.5 120.6 General and administrative — — — — 25.1 25.1 Operating income (loss) $ (11.6) $ (2.4) $ — $ 0.7 $ (28.6) $ (41.9) Property and equipment, net $ 9,501.7 $ 3,190.2 $ — $ — $ 39.7 $ 12,731.6 Nine Months Ended September 30, 2019 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 798.1 $ 604.0 $ 262.2 $ 139.0 $ (262.2) $ 1,541.1 Operating expenses Contract drilling (exclusive of depreciation) 681.3 561.1 171.7 87.0 (171.7) 1,329.4 Loss on impairment 88.2 — — 2.5 90.7 Depreciation 281.3 151.4 26.9 — (13.7) 445.9 General and administrative — — 13.9 — 133.0 146.9 Equity in earnings of ARO — — — — (3.1) (3.1) Operating income (loss) $ (252.7) $ (108.5) $ 49.7 $ 52.0 $ (215.4) $ (474.9) Property and equipment, net $ 10,187.5 $ 5,022.0 $ 652.5 $ — $ (611.3) $ 15,250.7 Nine Months Ended September 30, 2018 Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 785.7 $ 475.4 $ — $ 45.3 $ — $ 1,306.4 Operating expenses Contract drilling (exclusive of depreciation) 564.4 390.1 — 42.1 — 996.6 Depreciation 233.9 112.3 — — 10.3 356.5 General and administrative — — — — 79.1 79.1 Operating income (loss) $ (12.6) $ (27.0) $ — $ 3.2 $ (89.4) (125.8) Property and equipment, net $ 9,501.7 $ 3,190.2 $ — $ — $ 39.7 12,731.6 |
Schedule Of Geographic Distribution Of Rigs By Segment | As of September 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 11 8 — 19 — Europe & Mediterranean 6 15 — 21 — Middle East & Africa 5 13 9 27 7 Asia & Pacific Rim 3 7 — 10 — Asia & Pacific Rim (under construction) 2 — — 2 — Held for Sale 1 1 — 2 — Total 28 44 9 81 7 (1) The rigs included in the "Other" segment represent the nine rigs leased to ARO. See Note 4 for additional information. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Financial Information [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net, consisted of the following (in millions): September 30, December 31, Trade $ 518.7 $ 301.7 Other 56.1 46.4 574.8 348.1 Allowance for doubtful accounts (7.8) (3.4) $ 567.0 $ 344.7 |
Other Current Assets | Other current assets consisted of the following (in millions): September 30, December 31, Materials and supplies $ 347.1 $ 268.1 Prepaid taxes 59.2 35.0 Deferred costs 25.2 23.5 Prepaid expenses 17.3 15.2 Assets held-for-sale 8.9 — Other 29.8 19.1 $ 487.5 $ 360.9 |
Other Assets, Net | Other assets consisted of the following (in millions): September 30, December 31, Right-of-use assets $ 64.9 $ — Deferred tax assets 42.7 29.4 Tax receivables 36.6 8.4 Supplemental executive retirement plan assets 25.1 27.2 Intangible assets 13.4 2.5 Deferred costs 10.5 21.5 Other 11.6 8.8 $ 204.8 $ 97.8 |
Accrued Liabilities And Other | Accrued liabilities and other consisted of the following (in millions): September 30, December 31, Personnel costs $ 117.9 $ 82.5 Accrued interest 99.0 100.6 Income and other taxes payable 65.3 36.9 Pension and other post-retirement benefits 34.1 — Deferred revenue 24.6 56.9 Lease liabilities 23.4 — Derivative liabilities 7.8 10.9 Accrued rig holding costs 7.2 14.3 Other 28.4 15.9 $ 407.7 $ 318.0 |
Other Liabilities | Other liabilities consisted of the following (in millions): September 30, December 31, Unrecognized tax benefits (inclusive of interest and penalties) $ 313.5 $ 177.0 Pension and other post-retirement benefits 194.5 — Deferred tax liabilities 88.4 70.7 Lease liabilities 53.5 — Intangible liabilities 52.7 53.5 Supplemental executive retirement plan liabilities 25.6 28.1 Personnel costs 21.0 25.1 Deferred revenue 11.7 20.5 Deferred rent — 11.7 Other 37.3 9.4 $ 798.2 $ 396.0 |
Accumulated other comprehensive income | Accumulated other comprehensive income consisted of the following (in millions): September 30, December 31, Derivative instruments $ 13.6 $ 12.6 Currency translation adjustment 7.0 7.3 Other (1.7) (1.7) $ 18.9 $ 18.2 |
Schedule of Revenue by Major Customers by Reporting Segments | Consolidated revenues by customer for the three-month and nine-month periods ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Saudi Aramco (1) 16 % 11 % 12 % 10 % Total (2) 15 % 14 % 15 % 14 % BP (3) 10 % 5 % 8 % 7 % INPEX (4) 7 % 10 % 7 % 7 % Other 52 % 60 % 58 % 62 % 84 % 89 % 88 % 90 % (1) During the three-month and nine-month periods ended September 30, 2019 and 2018, all revenues were attributable to our Jackups segment. (2) During the three-month and nine-month periods ended September 30, 2019, 90% and 93% 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 nine-month periods ended September 30, 2018, all revenues were attributable to the Floaters segment. (3) During the three-month period ended September 30, 2019, 43% of the revenues provided by BP were attributable to our Jackups segment, 17% of the revenues were attributable to our Floaters segment and the remaining was attributable to our Other segment. During the three-month period ended September 30, 2018, 27% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our Other segment. During the nine-month period ended September 30, 2019, 41% of the revenues provided by BP were attributable to our Jackups segment, 16% of the revenues were attributable to our Floaters segment and the remainder was attributable to our Other segment. During the nine-month period ended September 30, 2018, 33% of the revenues provided by BP were attributable to our Floaters segment, 18% of the revenues were attributable to our Jackups segment and the remainder was attributable to our Other segment. (4) During the three-month and nine-month periods ended September 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 nine-month periods ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Saudi Arabia (1) $ 90.3 $ 49.0 $ 226.9 $ 131.8 U.S. Gulf of Mexico (2) 83.1 59.3 231.2 172.4 Angola (3) 72.1 76.2 210.8 209.5 United Kingdom (4) 59.6 55.4 157.2 155.7 Australia (5) 51.6 75.1 189.0 207.7 Other 194.6 115.9 526.0 429.3 $ 551.3 $ 430.9 $ 1,541.1 $ 1,306.4 (1) During the three-month and nine-month periods ended September 30, 2019, 58% and 69% of the revenues earned in Saudi Arabia were attributable to our Jackups segment, respectively. The remaining revenues were attributable to our Other segment and related to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. During the three-month and nine-month periods ended September 30, 2018, all revenues earned in Saudi Arabia were attributable to our Jackups segment. (2) During the three-month period ended September 30, 2019, 52% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 22% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the three-month period ended September 30, 2018, 35% of the revenues earned in 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 Other segment. During the nine-month period ended September 30, 2019, 40% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 35% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the nine-month period ended September 30, 2018, 36% of the revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 38% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. (3) During the three-month periods ended September 30, 2019 and 2018, 86% and 82% of the revenues earned in Angola were attributable to our Floaters segment, respectively, and the remaining revenues were attributable to our Jackups segment. During the nine-month periods ended September 30, 2019 and 2018, 87% of the revenues earned in Angola were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment. (4) During the three-month and nine-month periods ended September 30, 2019 and 2018, all revenues earned in the United Kingdom were attributable to our Jackups segment. (5) During the three-month periods ended September 30, 2019 and 2018, 99% and 87% of the revenues earned in Australia, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the nine-month periods ended September 30, 2019 and 2018, 95% and 94% of the revenues earned in Australia were attributable to our Floaters segment, respectively, and the remaining revenues were attributable to our Jackups segment. |
Guarantee Of Registered Secur_2
Guarantee Of Registered Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees [Abstract] | |
Condensed Consolidating Statements Of Operations | Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 15.7 $ 53.0 $ — $ 588.8 $ (106.2) $ 551.3 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 19.3 45.3 — 538.1 (106.2) 496.5 Loss on impairment — — — 88.2 — 88.2 Depreciation — 7.7 — 155.3 — 163.0 General and administrative 9.7 .1 — 26.3 — 36.1 Total operating expenses 29.0 53.1 — 807.9 (106.2) 783.8 EQUITY IN EARNINGS OF ARO — — — (3.7) — (3.7) OPERATING LOSS (13.3) (.1) — (222.8) — (236.2) OTHER INCOME (EXPENSE), NET 94.7 (5.6) (20.2) (33.0) 4.3 40.2 INCOME (LOSS) BEFORE INCOME TAXES 81.4 (5.7) (20.2) (255.8) 4.3 (196.0) INCOME TAX PROVISION — (18.4) — 19.9 — 1.5 EQUITY LOSSES IN AFFILIATES, NET OF TAX (278.5) (40.2) (68.0) — 386.7 — NET LOSS (197.1) (27.5) (88.2) (275.7) 391.0 (197.5) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — .4 — .4 NET LOSS ATTRIBUTABLE TO VALARIS $ (197.1) $ (27.5) $ (88.2) $ (275.3) $ 391.0 $ (197.1) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 12.1 $ 40.7 $ — $ 459.2 $ (81.1) $ 430.9 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 15.2 36.4 — 356.6 (81.1) 327.1 Depreciation — 3.6 — 117.0 — 120.6 General and administrative 10.5 1.9 — 12.7 — 25.1 OPERATING LOSS (13.6) (1.2) — (27.1) — (41.9) OTHER EXPENSE, NET (.6) (32.6) (19.5) (29.0) 4.0 (77.7) LOSS BEFORE INCOME TAXES (14.2) (33.8) (19.5) (56.1) 4.0 (119.6) INCOME TAX PROVISION — 9.5 — 13.8 — 23.3 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (130.8) 28.2 23.1 — 79.5 — NET INCOME (LOSS) (145.0) (15.1) 3.6 (69.9) 83.5 (142.9) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.1) — (2.1) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (145.0) $ (15.1) $ 3.6 $ (72.0) $ 83.5 $ (145.0) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Nine Months Ended September 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 47.0 $ 128.6 $ — $ 1,627.1 $ (261.6) $ 1,541.1 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 49.3 112.8 — 1,428.9 (261.6) 1,329.4 Loss on impairment — — — 90.7 — 90.7 Depreciation — 15.4 — 430.5 — 445.9 General and administrative 71.0 .3 — 75.6 — 146.9 Total operating expenses 120.3 128.5 — 2,025.7 (261.6) 2,012.9 EQUITY IN EARNINGS OF ARO — — — (3.1) — (3.1) OPERATING INCOME (LOSS) (73.3) 0.1 — (401.7) — (474.9) OTHER INCOME (EXPENSE), NET 773.5 (36.6) (61.0) (126.3) 12.7 562.3 INCOME (LOSS) BEFORE INCOME TAXES 700.2 (36.5) (61.0) (528.0) 12.7 87.4 INCOME TAX PROVISION — 10.6 — 55.0 — 65.6 EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (682.2) 35.1 (14.9) — 662.0 — NET INCOME (LOSS) 18.0 (12.0) (75.9) (583.0) 674.7 21.8 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.8) — (3.8) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 18.0 $ (12.0) $ (75.9) $ (586.8) $ 674.7 $ 18.0 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Nine Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total OPERATING REVENUES $ 36.7 $ 120.8 $ — $ 1,387.0 $ (238.1) $ 1,306.4 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 41.6 109.2 — 1,083.9 (238.1) 996.6 Depreciation — 10.6 — 345.9 — 356.5 General and administrative 31.0 2.2 — 45.9 — 79.1 OPERATING LOSS (35.9) (1.2) — (88.7) — (125.8) OTHER INCOME (EXPENSE), NET (0.1) (101.1) (69.5) (85.9) 23.4 (233.2) LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (36.0) (102.3) (69.5) (174.6) 23.4 (359.0) INCOME TAX PROVISION — 32.4 — 34.0 — 66.4 DISCONTINUED OPERATIONS, NET — — — (8.1) — (8.1) EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX (400.1) 77.7 69.1 — 253.3 — NET LOSS (436.1) (57.0) (0.4) (216.7) 276.7 (433.5) NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.6) — (2.6) NET LOSS ATTRIBUTABLE TO VALARIS $ (436.1) $ (57.0) $ (.4) $ (219.3) $ 276.7 $ (436.1) |
Condensed Consolidating Statements Of Comprehensive Income | VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Three Months Ended September 30, 2019 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (197.1) $ (27.5) $ (88.2) $ (275.7) $ 391.0 $ (197.5) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (5.7) — — — (5.7) Reclassification of net losses on derivative instruments from other comprehensive income into net income — 4.9 — — — 4.9 Other — — — (.2) — (.2) NET OTHER COMPREHENSIVE LOSS — (.8) — (.2) — (1.0) COMPREHENSIVE LOSS (197.1) (28.3) (88.2) (275.9) 391.0 (198.5) COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — .4 — .4 COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (197.1) $ (28.3) $ (88.2) $ (275.5) $ 391.0 $ (198.1) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 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) $ (145.0) $ (15.1) $ 3.6 $ (69.9) $ 83.5 $ (142.9) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (1.9) — — — (1.9) Reclassification of net gains on derivative instruments from other comprehensive income into net loss — .7 — — — .7 Other — — — (.1) — (.1) NET OTHER COMPREHENSIVE LOSS — (1.2) — (.1) — (1.3) COMPREHENSIVE INCOME (LOSS) (145.0) (16.3) 3.6 (70.0) 83.5 (144.2) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.1) — (2.1) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (145.0) $ (16.3) $ 3.6 $ (72.1) $ 83.5 $ (146.3) VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 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) $ 18.0 $ (12.0) $ (75.9) $ (583.0) $ 674.7 $ 21.8 OTHER COMPREHENSIVE INCOME (LOSS), NET Net change in derivative fair value — (7.3) — — — (7.3) Reclassification of net gains on derivative instruments from other comprehensive income (loss) to net income (loss) — 8.3 — — — 8.3 Other — — — (.3) — (.3) NET OTHER COMPREHENSIVE INCOME (LOSS) — 1.0 — (.3) — .7 COMPREHENSIVE INCOME (LOSS) 18.0 (11.0) (75.9) (583.3) 674.7 22.5 COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (3.8) — (3.8) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 18.0 $ (11.0) $ (75.9) $ (587.1) $ 674.7 $ 18.7 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS Nine Months Ended September 30, 2018 (In millions) (Unaudited) Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total NET LOSS $ (436.1) $ (57.0) $ (.4) $ (216.7) $ 276.7 $ (433.5) OTHER COMPREHENSIVE LOSS, NET Net change in derivative fair value — (7.6) — — — (7.6) Reclassification of net gains on derivative instruments from other comprehensive loss into net loss — (2.2) — — — (2.2) Other — — — (.4) — (.4) NET OTHER COMPREHENSIVE LOSS — (9.8) — (.4) — (10.2) COMPREHENSIVE LOSS (436.1) (66.8) (.4) (217.1) 276.7 (443.7) COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — (2.6) — (2.6) COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS $ (436.1) $ (66.8) $ (.4) $ (219.7) $ 276.7 $ (446.3) |
Condensed Consolidating Balance Sheets | Valaris plc ENSCO International Incorporated Pride International LLC Other Non-Guarantor Subsidiaries of Valaris Consolidating Adjustments Total ASSETS CURRENT ASSETS Cash and cash equivalents $ 72.5 $ — $ — $ 57.0 $ — $ 129.5 Short-term investments — — — — — — Accounts receivable, net 2.0 25.4 — 539.6 — 567.0 Accounts receivable from affiliates 3,282.0 372.2 2.0 280.5 (3,936.7) — Other — 8.9 — 478.6 — 487.5 Total current assets 3,356.5 406.5 2.0 1,355.7 (3,936.7) 1,184.0 PROPERTY AND EQUIPMENT, AT COST 1.8 123.2 — 18,267.9 — 18,392.9 Less accumulated depreciation 1.8 82.8 — 3,057.6 — 3,142.2 Property and equipment, net — 40.4 — 15,210.3 — 15,250.7 LONG-TERM NOTES RECEIVABLE FROM ARO — — — 452.9 — 452.9 INVESTMENT IN ARO — — — 138.2 — 138.2 DUE FROM AFFILIATES 1,100.0 — 38.9 2,590.3 (3,729.2) — INVESTMENTS IN AFFILIATES 9,934.2 776.1 1,184.9 — (11,895.2) — OTHER ASSETS 1.5 — — 203.3 — 204.8 $ 14,392.2 $ 1,223.0 $ 1,225.8 $ 19,950.7 $ (19,561.1) $ 17,230.6 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 81.6 $ 22.1 $ 4.7 $ 625.7 $ — $ 734.1 Accounts payable to affiliates 213.7 112.9 796.8 2,813.3 (3,936.7) — Current maturities of long-term debt — — 125.5 — — 125.5 Total current liabilities 295.3 135.0 927.0 3,439.0 (3,936.7) 859.6 DUE TO AFFILIATES 1,454.3 542.4 593.6 1,138.9 (3,729.2) — LONG-TERM DEBT 3,122.7 111.7 373.6 2,434.3 — 6,042.3 OTHER LIABILITIES (10.6) 56.0 — 752.8 — 798.2 VALARIS SHAREHOLDERS' EQUITY (DEFICIT) 9,530.5 377.9 (668.4) 12,186.6 (11,895.2) 9,531.4 NONCONTROLLING INTERESTS — — — (.9) — (.9) Total equity (deficit) 9,530.5 377.9 (668.4) 12,185.7 (11,895.2) 9,530.5 $ 14,392.2 $ 1,223.0 $ 1,225.8 $ 19,950.7 $ (19,561.1) $ 17,230.6 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 Nine Months Ended September 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 $ (125.2) $ (82.3) $ (98.0) $ (122.0) $ — $ (427.5) INVESTING ACTIVITIES Rowan cash acquired — — — 931.9 — 931.9 Maturities of short-term investments 474.0 — — — — 474.0 Purchases of short-term investments (145.0) — — — — (145.0) Additions to property and equipment — — — (174.2) — (174.2) Other — — — 4.9 — 4.9 Net cash provided by investing activities of continuing operations 329.0 — — 762.6 — 1,091.6 FINANCING ACTIVITIES Reduction of long-term borrowings (536.6) (30.4) — (361.1) — (928.1) Cash dividends paid (4.5) — — — — (4.5) Borrowings on credit facility 175.0 — — — — 175.0 Repayments of credit facility borrowings (34.4) — — — — (34.4) Debt solicitation fee — — — (9.4) — (9.4) Other (5.3) — — (2.4) — (7.7) Advances from (to) affiliates 74.7 112.7 95.3 (282.7) — — Net cash provided by (used in) financing activities (331.1) 82.3 95.3 (655.6) — (809.1) Net cash provided by discontinued operations — — — — — — Effect of exchange rate changes on cash and cash equivalents — — — (.6) (.6) NET DECREASE IN CASH AND CASH EQUIVALENTS (127.3) — (2.7) (15.6) — (145.6) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 199.8 — 2.7 72.6 — 275.1 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 72.5 $ — $ — $ 57.0 $ — $ 129.5 VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended September 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 $ 19.7 $ (257.2) $ (85.1) $ 240.4 $ — $ (82.2) INVESTING ACTIVITIES Maturities of short-term investments 675.0 — — — — 675.0 Purchases of short-term investments (669.0) — — — — (669.0) Additions to property and equipment — — — (378.7) — (378.7) Sale of affiliate debt 479.0 — — — (479.0) — Purchase of affiliate debt (552.5) — — — 552.5 — Other — — — 10.0 — 10.0 Net cash used in investing activities of continuing operations (67.5) — — (368.7) 73.5 (362.7) 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 (13.4) — — — — (13.4) Debt issuance costs (17.0) — — — — (17.0) Advances from affiliates (798.5) 257.2 603.2 (61.9) — — Other (1.9) — — (2.8) — (4.7) Net cash provided by (used in) financing activities 9.3 257.2 65.4 (64.7) (73.5) 193.7 Net cash provided by discontinued operations — — — 2.5 — 2.5 Effect of exchange rate changes on cash and cash equivalents — — — (.7) — (.7) NET DECREASE IN CASH AND CASH EQUIVALENTS (38.5) — (19.7) (191.2) — (249.4) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 185.2 — 25.6 234.6 — 445.4 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 146.7 $ — $ 5.9 $ 43.4 $ — $ 196.0 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total operating lease liabilities | $ 76.9 | ||
Operating lease right-of-use assets | $ 64.9 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total operating lease liabilities | $ 64.6 | ||
Operating lease right-of-use assets | $ 53.7 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 32.7 | $ 32.7 | |||
Amortization of deferred contract costs | 1.3 | 2.4 | |||
Upfront Rig Mobilizations And Certain Contract Preparation | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | 22.2 | 22.2 | $ 23.5 | ||
Amortization of deferred contract costs | 12.6 | $ 10.1 | 33.7 | $ 26 | |
Deferred Certification Costs | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | 10.5 | 10.5 | $ 13.6 | ||
Amortization of deferred contract costs | $ 2.5 | $ 3.3 | $ 8.1 | $ 9.6 | |
Minimum | |||||
Capitalized Contract Cost [Line Items] | |||||
Remaining duration of drilling contracts | 1 month | 1 month | |||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Remaining duration of drilling contracts | 3 years | 3 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Current contract assets | $ 10.7 | $ 4 |
Current contract liabilities (deferred revenue) | 24.6 | 56.9 |
Noncurrent contract liabilities (deferred revenue) | $ 11.7 | $ 20.5 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 10.7 | $ 4 |
Contract with Customer, Asset, Increase (Decrease) for Contract Acquired in Business Combination | 8.4 | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0.3 | |
Contract with Customer, Asset, Reclassified to Receivable | (2) | |
Contract with Customer, Liability | 36.3 | $ 77.4 |
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination | 5.3 | |
Contract with Customer, Liability, Increase from Cash Receipts | 29.4 | |
Contract with Customer, Liability, Revenue Recognized, Included In Beginning Balance | (52.1) | |
Contract with Customer, Liability, Revenue Recognized, Added During Period | $ (23.7) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Future Amortization of Liabilities and Deferred Costs (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 36.3 |
Deferred contract costs | $ 32.7 |
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, 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, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 12.1 |
Capitalized Contract Cost, Amortization Expense, Remainder Of Fiscal Year | $ 12.1 |
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 | $ 12.9 |
Capitalized Contract Cost, Amortization Expense, Year Two | 15.9 |
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 | 7.2 |
Capitalized Contract Cost, Amortization Expense, Year Three | 3.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 4.1 |
Capitalized Contract Cost, Amortization Expense, Year Four and Thereafter | $ 1.4 |
Rowan Transaction (Narrative) (
Rowan Transaction (Narrative) (Details) $ / shares in Units, € in Millions | Apr. 11, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($)jackup$ / shares | Sep. 30, 2019EUR (€) | Jun. 30, 2019 | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)jackup$ / shares | Sep. 30, 2019EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 10, 2019jackup$ / shares | Mar. 31, 2019$ / shares | Oct. 05, 2018$ / shares |
Business Acquisition [Line Items] | ||||||||||||||
Number of rigs owned by ARO | jackup | 7 | 7 | ||||||||||||
Number of jackups leased by ARO | jackup | 9 | 9 | ||||||||||||
Number of newbuild Jackup Rigs | jackup | 20 | 20 | ||||||||||||
Jackups Marked For Retirement | jackup | 2 | |||||||||||||
Number of Drillships owned by legacy Rowan | jackup | 4 | 4 | ||||||||||||
Number of Jackup Rigs Owned by Acquiree | jackup | 19 | 19 | ||||||||||||
Estimated bargain purchase gain | $ 659,800,000 | $ 1,800,000 | ||||||||||||
Amortization of deferred contract costs | $ 1,300,000 | 2,400,000 | ||||||||||||
Deferred tax assets | 988,000,000 | $ 988,000,000 | ||||||||||||
Remaining terms of underlying contracts | 2 years 3 months 18 days | 2 years 3 months 18 days | ||||||||||||
Revenues | 551,300,000 | $ 430,900,000 | $ 1,541,100,000 | 1,306,400,000 | ||||||||||
Net losses | $ (197,100,000) | $ (145,000,000) | $ 18,000,000 | $ (436,100,000) | ||||||||||
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 | |||||||||||
Rowan Companies | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Jackups Marked For Retirement | jackup | 2 | 2 | ||||||||||||
Number of Drillships owned by legacy Rowan | jackup | 4 | 4 | ||||||||||||
Number of Jackup Rigs Owned by Acquiree | jackup | 19 | 19 | ||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Per Share | $ / shares | $ 43.67 | |||||||||||||
Aggregate value of shares | $ 1,402,800,000 | |||||||||||||
Estimated fair value of employee equity awards | 2,600,000 | |||||||||||||
Estimated bargain purchase gain | $ 53,000,000 | $ 659,800,000 | ||||||||||||
Transaction related costs | 200,000 | 18,000,000 | ||||||||||||
Fair value of materials and supplies | 83,000,000 | |||||||||||||
Property and equipment | 2,975,600,000 | |||||||||||||
Intangible assets | 16,200,000 | 13,300,000 | 13,300,000 | |||||||||||
Intangible liabilities | 2,100,000 | 1,600,000 | 1,600,000 | |||||||||||
Liabilities recognized | 50,000,000 | € 46 | 51,000,000 | € 47 | ||||||||||
Deferred tax assets | 100,000,000 | |||||||||||||
Uncertain tax positions | $ 50,400,000 | |||||||||||||
Revenues | 138,900,000 | 286,200,000 | ||||||||||||
Net losses | 31,200,000 | 95,100,000 | ||||||||||||
Rowan Companies | Luxembourg Inland Revenue | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Income tax assesments | $ 101,000,000 | 101,000,000 | ||||||||||||
Unrecognized tax benefit, maximum exposure | $ 155,000,000 | € 142 | ||||||||||||
Rowan Companies | Class A ordinary shares, U.S. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Per Share | $ / shares | $ 2.750 | |||||||||||||
Closing price | $ / shares | $ 15.88 | $ 33.92 | ||||||||||||
Number of shares issued | shares | 88,300,000 | |||||||||||||
Consolidation 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 | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of deferred contract costs | $ 1,300,000 | $ 5,300,000 | $ 5,100,000 | |||||||||||
Minimum | Rowan Companies | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Useful lives | 30 years | 16 years | ||||||||||||
Maximum | Rowan Companies | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Useful lives | 35 years | 35 years |
Rowan Transaction Assets Acquir
Rowan Transaction Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 11, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Estimated bargain purchase gain | $ 659.8 | $ 1.8 | ||
Gross contractual amounts receivable | $ 208.3 | |||
Rowan Companies | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Cash and cash equivalents | 931.9 | |||
Accounts receivable | 204.5 | |||
Other current assets | 101.6 | |||
Long-term notes receivable from ARO | 454.5 | |||
Investment in ARO | 141.3 | |||
Property and equipment | 2,975.6 | |||
Other assets | 39.9 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Accounts payable and accrued liabilities | 259.1 | |||
Current portion of long-term debt | 203.2 | |||
Long-term debt | 1,910.9 | |||
Other liabilities | 413.5 | |||
Net assets acquired | 2,062.6 | |||
Less: Merger consideration | (1,402.8) | |||
Estimated bargain purchase gain | $ 53 | $ 659.8 | ||
Previously Reported | Rowan Companies | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
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 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
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: Merger consideration | (1,402.8) | |||
Estimated bargain purchase gain | 712.8 | |||
Restatement Adjustment | Rowan Companies | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Cash and cash equivalents | 0 | |||
Accounts receivable | (2.6) | |||
Other current assets | 0 | |||
Long-term notes receivable from ARO | 0 | |||
Investment in ARO | 2.5 | |||
Property and equipment | (14.2) | |||
Other assets | (1.8) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Accounts payable and accrued liabilities | (0.3) | |||
Current portion of long-term debt | 0 | |||
Long-term debt | 0 | |||
Other liabilities | 37.2 | |||
Net assets acquired | (53) | |||
Less: Merger consideration | 0 | |||
Estimated bargain purchase gain | $ (53) |
Rowan Transaction Pro Forma Imp
Rowan Transaction Pro Forma Impact of Rowan Transaction (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Estimated bargain purchase gain | $ 659.8 | $ 1.8 | ||
Rowan Companies | ||||
Revenues | $ 552 | $ 624 | 1,729.5 | 1,952 |
Net loss | $ (151.1) | $ (250) | $ (795.2) | $ (607.1) |
Loss per share - basic and diluted (in usd per share) | $ (0.53) | $ (1.27) | $ (3.14) | $ (3.09) |
Aggregate of transaction-related and integration costs | $ 16 | $ 85.4 | ||
Estimated bargain purchase gain | $ 53 | $ 659.8 |
Equity Method Investment In A_3
Equity Method Investment In ARO Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2017USD ($) | Sep. 30, 2019USD ($)jackup | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($)jackup | Dec. 31, 2018USD ($) | Oct. 31, 2018rigs | |
Schedule of Equity Method Investments [Line Items] | ||||||
Number of Rigs Sold | rigs | 2 | |||||
Long-term notes receivable | $ 452.9 | $ 452.9 | $ 0 | |||
Contracts terms on purchased rigs | 15 years | |||||
Contract re-pricing and renewal | 3 years | |||||
Number of rigs owned by ARO | jackup | 7 | 7 | ||||
Number of rigs leased in operation | jackup | 8 | 8 | ||||
Number of jackups leased by ARO | jackup | 9 | 9 | ||||
Number of newbuild Jackup Rigs | jackup | 20 | 20 | ||||
Order period | 10 years | |||||
Maximum aggregate contribution | $ 1,250 | $ 1,250 | ||||
Minimum terms for renewal | 8 years | |||||
Amounts receivable from ARO | 40.6 | $ 40.6 | ||||
Accounts payable to ARO | 3 | 3 | ||||
Reimbursements included in accounts receivable | 14.3 | $ 14.3 | ||||
Interest recognized as interest income | $ 5.8 | $ 10.9 | ||||
ARO | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Contributions to establish join venture | $ 25 | |||||
Ownership percentage | 50.00% | 50.00% |
Equity Method Investment In A_4
Equity Method Investment In ARO - Summarized Financial Data (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investment Owned, Balance [Abstract] | |||||
Equity in earnings of ARO | $ (3,700,000) | $ 0 | $ (3,100,000) | $ 0 | |
Notes Receivable [Abstract] | |||||
Notes Receivable, Related Parties | 452,900,000 | $ 452,900,000 | 452,900,000 | ||
ARO | |||||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||||
Total assets | 663,300,000 | 663,300,000 | 663,300,000 | ||
Total liabilities | 3,000,000 | 3,000,000 | 3,000,000 | ||
Maximum exposure to loss | 660,300,000 | 660,300,000 | 660,300,000 | ||
Investment Owned, Balance [Abstract] | |||||
50% interest in ARO net income | 5,100,000 | 13,600,000 | |||
Amortization of basis differences | (8,800,000) | (16,700,000) | |||
Equity in earnings of ARO | (3,700,000) | (3,100,000) | |||
ARO | |||||
Related Party Transactions [Abstract] | |||||
Lease revenue | 19,900,000 | 37,000,000 | |||
Secondment revenue | 17,900,000 | 33,500,000 | |||
Transition Services revenue | 5,000,000 | 10,200,000 | |||
Total revenue from ARO | 42,800,000 | 80,700,000 | |||
ARO | |||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Revenues | 138,400,000 | 262,200,000 | |||
Contract drilling (exclusive of depreciation) | 92,700,000 | 171,700,000 | |||
Depreciation | 14,600,000 | 26,900,000 | |||
General and administrative | 8,800,000 | 13,900,000 | |||
Operating income | 22,300,000 | 49,700,000 | |||
Other expense, net | 9,900,000 | 18,800,000 | |||
Provision for income taxes | 2,200,000 | 3,800,000 | |||
Net income | 10,200,000 | 27,100,000 | |||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | |||||
Current assets | 452,800,000 | 452,800,000 | 452,800,000 | ||
Non-current assets | 887,100,000 | 887,100,000 | 887,100,000 | ||
Total assets | 1,339,900,000 | 1,339,900,000 | 1,339,900,000 | ||
Current liabilities | 232,400,000 | 232,400,000 | 232,400,000 | ||
Non-current liabilities | 1,021,700,000 | 1,021,700,000 | 1,021,700,000 | ||
Total liabilities | 1,254,100,000 | 1,254,100,000 | 1,254,100,000 | ||
October 2027 | |||||
Notes Receivable [Abstract] | |||||
Notes Receivable, Related Parties | 275,200,000 | 275,200,000 | 275,200,000 | ||
October 2028 | |||||
Notes Receivable [Abstract] | |||||
Notes Receivable, Related Parties | $ 177,700,000 | $ 177,700,000 | $ 177,700,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | $ 25.1 | $ 27.2 |
Total Financial Assets | 25.1 | 27.2 |
Derivatives, net | 7.9 | 10.7 |
Total financial liabilities | 7.9 | 10.7 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 25.1 | 27.2 |
Total Financial Assets | 25.1 | 27.2 |
Derivatives, net | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 0 | 0 |
Total Financial Assets | 0 | 0 |
Derivatives, net | 7.9 | 10.7 |
Total financial liabilities | 7.9 | 10.7 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Supplemental executive retirement plan assets | 0 | 0 |
Total Financial Assets | 0 | 0 |
Derivatives, net | 0 | 0 |
Total financial liabilities | $ 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 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amounts borrowed under the credit facility | $ 140.6 | $ 0 | |
Less: current maturities | 125.5 | 0 | |
Total long-term debt, carrying value | 6,042.3 | 5,010.4 | |
Total outstanding borrowings under credit facility | 140.6 | ||
Unamortized deferred financing cost | 7.7 | ||
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 6,167.8 | 5,010.4 | |
Less: current maturities | 125.5 | 0 | |
Total long-term debt, carrying value | 6,042.3 | 5,010.4 | |
Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | 3,958.1 | 3,545.8 | |
Less: current maturities | 121.3 | 0 | |
Total long-term debt, estimated fair value | 3,836.8 | 3,545.8 | |
Line of Credit | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 132.9 | 0 | |
Line of Credit | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amounts borrowed under the credit facility | $ 140.6 | 0 | |
7.88% Senior notes due 2019 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 6.875% | 6.875% | |
7.88% Senior notes due 2019 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 125.5 | 127.5 | |
7.88% Senior notes due 2019 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 121.3 | 121.6 | |
4.70% Senior notes due 2021 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 4.70% | 4.70% | |
4.70% Senior notes due 2021 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 113.1 | 112.7 | |
4.70% Senior notes due 2021 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 98.7 | 101.8 | |
4.875% Senior Notes Due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 4.875% | 4.875% | |
4.875% Senior Notes Due 2022 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 597.1 | 0 | |
4.875% Senior Notes Due 2022 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 474.9 | 0 | |
3.00% exchangeable senior notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 3.00% | 3.00% | |
3.00% exchangeable senior notes due 2024 | Convertible Debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of 2024 convertible notes | $ 838 | 836.3 | |
3.00% exchangeable senior notes due 2024 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 691 | 666.8 | |
3.00% exchangeable senior notes due 2024 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 573.4 | 575.5 | |
4.50% Senior Notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 4.50% | 4.50% | |
4.50% Senior Notes due 2024 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 301.9 | 619.8 | |
4.50% Senior Notes due 2024 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 170.5 | 405.2 | |
4.75% Senior notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | |
4.75% Senior notes due 2024 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 274.3 | 0 | |
4.75% Senior notes due 2024 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 197.9 | 0 | |
8.00% Senior notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | |
8.00% Senior notes due 2024 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 296 | 337 | |
8.00% Senior notes due 2024 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 195.4 | 273.7 | |
7.375% Senior notes due 2025 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 7.375% | 7.375% | |
7.375% Senior notes due 2025 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 328.1 | 0 | |
7.375% Senior notes due 2025 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 214.1 | 0 | |
5.20% Senior notes due 2025 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 5.20% | 5.20% | |
5.20% Senior notes due 2025 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 331.6 | 664.4 | |
5.20% Senior notes due 2025 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 180.3 | 443.9 | |
7.75% Senior notes due 2026 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 7.75% | 7.75% | |
7.75% Senior notes due 2026 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 986.6 | 985 | |
7.75% Senior notes due 2026 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 541.9 | 725.5 | |
7.20% Senior notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 7.20% | 7.20% | |
7.20% Senior notes due 2027 | Debentures | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 111.6 | 149.3 | |
7.20% Senior notes due 2027 | Debentures | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 70.5 | 109.1 | |
7.875% Senior notes due 2040 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 7.875% | 7.875% | |
7.875% Senior notes due 2040 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 373.7 | 375 | |
7.875% Senior notes due 2040 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 155.3 | 223.2 | |
5.40% Senior Notes Due 2042 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 5.40% | 5.40% | |
5.40% Senior Notes Due 2042 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 262.3 | 0 | |
5.40% Senior Notes Due 2042 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 192.2 | 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% | |
5.75% Senior notes due 2044 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 973.7 | 972.9 | |
5.75% Senior notes due 2044 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 434 | 566.3 | |
5.85% Senior Notes Due 2044 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument interest rate stated percentage | 5.85% | 5.85% | |
5.85% Senior Notes Due 2044 | Senior Notes | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 268.4 | 0 | |
5.85% Senior Notes Due 2044 | Senior Notes | Estimate of Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated Fair Value | $ 197.1 | $ 0 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits Pension Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions to pension and other post-retirement benefit plans | $ 8 | |
Additional contributions | $ 6.6 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net projected benefit obligations | 239.3 | |
Pension Plan | Rowan Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net projected benefit obligations, current | $ 19.2 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 0.5 | $ 1 |
Interest cost | 7.7 | 13.9 |
Expected return on plant assets | (9.4) | (17.6) |
Net periodic pension cost | $ (1.2) | $ (2.7) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net assets associated with foreign currency derivatives | $ (7.9) | $ (7.9) | $ (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 | $ (5) | ||||
Designated as Hedging Instrument | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 212.6 | 212.6 | |||
Designated as Hedging Instrument | United Kingdom, Pounds | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 116.7 | 116.7 | |||
Designated as Hedging Instrument | Australia, Dollars | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 44.6 | 44.6 | |||
Designated as Hedging Instrument | Euro Member Countries, Euro | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 18.2 | 18.2 | |||
Designated as Hedging Instrument | Singapore, Dollars | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 9.5 | 9.5 | |||
Designated as Hedging Instrument | Norway, Krone | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 16.5 | 16.5 | |||
Designated as Hedging Instrument | Brazil, Brazil Real | Foreign Exchange Forward | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 7.1 | 7.1 | |||
Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gains (losses) on derivatives not designated as hedging instruments | (2.3) | $ 2.2 | (7.6) | $ 9.7 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 27.1 | 27.1 | |||
Not Designated as Hedging Instrument | United Kingdom, Pounds | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 7.8 | 7.8 | |||
Not Designated as Hedging Instrument | Nigeria, Nairas | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 9.6 | 9.6 | |||
Not Designated as Hedging Instrument | Israel, New Shekels | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 6.6 | 6.6 | |||
Not Designated as Hedging Instrument | Mexico, Pesos | Foreign Exchange Forward | Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | $ 3.1 | $ 3.1 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Derivatives At Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Total fair value of derivative assets | $ 0.3 | $ 0.6 | |
Total fair value of derivative liabilities | 8.2 | 11.3 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | 0 | 0.2 | |
Total fair value of derivative liabilities | 7.4 | 8.7 | |
Other Current Assets | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | [1] | 0 | 0.2 |
Other Current Assets | Not Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative assets | [1] | 0.3 | 0.4 |
Other Current Liabilities | Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative liabilities | [1] | 7 | 8.3 |
Other Current Liabilities | Not Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Total fair value of derivative liabilities | [1] | 0.8 | 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] | $ 0.4 | $ 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 | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||||
Interest Rate Lock Contracts | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | $ 0 | $ 0 | $ 0 | [1] | $ 0 | [1] | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | 1,700,000 | (100,000) | 1,800,000 | [1],[2] | (200,000) | [1],[2] | |||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | [1],[3] | 0 | [1],[3] | |||
Foreign Exchange Forward | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | (5,700,000) | [4] | (1,900,000) | [4] | (7,300,000) | [5] | (7,600,000) | [5] | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | [2] | 3,200,000 | [4] | (600,000) | [4] | 6,500,000 | [5] | 2,400,000 | [5] |
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [3] | 0 | [4] | (300,000) | [4] | 0 | [5] | (1,500,000) | [5] |
Foreign Exchange Forward | Contract Drilling | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | (3,400,000) | (800,000) | (7,100,000) | 1,800,000 | |||||
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 | 600,000 | 600,000 | |||||
Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | (5,700,000) | (1,900,000) | (7,300,000) | (7,600,000) | |||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | [2] | 4,900,000 | (700,000) | 8,300,000 | 2,200,000 | ||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | [3] | $ 0 | $ (300,000) | $ 0 | $ (1,500,000) | ||||
[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 on January 1, 2019, ineffectiveness is no longer separately measured and recognized. See additional information in Note 1 . | ||||||||
[4] | During the three-month period ended September 30, 2019, $3.4 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the three-month period ended September 30, 2018, $0.8 million of losses were reclassified from AOCI into contract drilling expense and $0.2 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. | ||||||||
[5] | During the nine-month period ended September 30, 2019, $7.1 million of losses were reclassified from AOCI into contract drilling expense and $0.6 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the nine-month period ended September 30, 2018, $1.8 million of gains were reclassified from AOCI into contract drilling expense and $0.6 million of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 18,392.9 | $ 15,517 |
Non-cash impairment charge | 88.2 | |
Drilling rigs and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 17,615.1 | 14,542.5 |
Work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 574.6 | 779.2 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 203.2 | $ 195.3 |
Earnings (Loss) Per Share (Reco
Earnings (Loss) Per Share (Reconciliation Of Net Income Attributable To Ensco Shares) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations attributable to Valaris | $ (197.1) | $ (145) | $ 18 | $ (436.1) |
Income from continuing operations allocated to non-vested share awards | 0 | (0.2) | (0.6) | (0.4) |
Income (loss) from continuing operations attributable to Valaris shares | $ (197.1) | $ (145.2) | $ 17.4 | $ (436.5) |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive share options excluded from computation of diluted earnings per share (in shares) | 400,000 | 1,600,000 | 300,000 | 1,700,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 25, 2019 | Apr. 10, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 2,300 | $ 2,300 | $ 2,000 | ||||
Maximum borrowing capacity, through 2020 | 1,300 | ||||||
Maximum borrowing capacity, through 2022 | 1,600 | 1,600 | $ 1,200 | ||||
Accordion feature, increase limit | 250 | ||||||
Amounts borrowed under the credit facility | 140.6 | 140.6 | $ 0 | ||||
Principal amount repurchased | $ 951.8 | ||||||
Gain (Loss) on Extinguishment of Debt | 194.1 | 194.1 | $ (19) | ||||
7.875% Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 201.4 | $ 201.4 | |||||
Debt instrument interest rate stated percentage | 7.875% | 7.875% | |||||
4.875% Senior Notes Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 620.8 | $ 620.8 | |||||
Debt instrument interest rate stated percentage | 4.875% | 4.875% | 4.875% | ||||
4.75% Senior notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 398.1 | $ 398.1 | |||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | 4.75% | ||||
7.375% Senior notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 500 | $ 500 | |||||
Debt instrument interest rate stated percentage | 7.375% | 7.375% | 7.375% | ||||
5.40% Senior Notes Due 2042 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 400 | $ 400 | |||||
Debt instrument interest rate stated percentage | 5.40% | 5.40% | 5.40% | ||||
5.85% Senior Notes Due 2044 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt assumed | $ 400 | $ 400 | |||||
Debt instrument interest rate stated percentage | 5.85% | 5.85% | 5.85% |
Debt Schedule of Extinguishment
Debt Schedule of Extinguishment of Debt - Tender Offers and Repurchases (Details) $ in Millions | Jun. 25, 2019USD ($) |
Debt Instrument [Line Items] | |
Principal amount repurchased | $ 951.8 |
Aggregate repurchase price | 724.1 |
Senior Notes | 4.50% Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 320 |
Aggregate repurchase price | 240 |
Senior Notes | 5.20% Senior notes due 2025 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 335.5 |
Aggregate repurchase price | 250 |
Senior Notes | 7.20% Senior notes due 2027 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 37.9 |
Aggregate repurchase price | 29.9 |
Senior Notes | 4.75% Senior notes due 2024 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 79.5 |
Aggregate repurchase price | 61.2 |
Senior Notes | 7.375% Senior notes due 2025 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 139.2 |
Aggregate repurchase price | 109.2 |
Senior Notes | 8.00% Senior notes due 2024 | |
Debt Instrument [Line Items] | |
Principal amount repurchased | 39.7 |
Aggregate repurchase price | $ 33.8 |
Shareholders Equity Shareholder
Shareholders Equity Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 8,088.8 | $ 8,088.8 | |||||||
Net loss | $ (197.5) | $ (142.9) | 21.8 | $ (433.5) | |||||
Shares issued under share-based compensation plans, net | 3,400,000 | ||||||||
Distributions to noncontrolling interests | (2) | $ (0.7) | |||||||
Net other comprehensive income | (1) | $ (1.3) | 0.7 | $ (10.2) | |||||
Ending balance | $ 9,530.5 | $ 9,530.5 | |||||||
Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 205,800,000 | 115,200,000 | 115,200,000 | 115,200,000 | 111,800,000 | 111,800,000 | 115,200,000 | 111,800,000 | |
Beginning balance | $ 82.5 | $ 46.2 | $ 46.2 | $ 46.2 | $ 44.8 | $ 44.8 | $ 46.2 | $ 44.8 | |
Equity issuance in connection with the Rowan Transaction | $ 35.2 | ||||||||
Equity issuance in connection with the Rowan Transaction (in shares) | 88,000,000 | ||||||||
Shares issued under share-based compensation plans, net | 2,600,000 | ||||||||
Shares issued under share-based compensation plans, net | $ 1.1 | $ 1.4 | |||||||
Ending balance (in shares) | 205,800,000 | 205,800,000 | 115,200,000 | 115,200,000 | 115,200,000 | 111,800,000 | 205,800,000 | 115,200,000 | |
Ending balance | $ 82.5 | $ 82.5 | $ 46.2 | $ 46.2 | $ 46.2 | $ 44.8 | $ 82.5 | $ 46.2 | |
Additional Paid-in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 8,608.4 | 7,230.2 | 7,225 | 7,209.5 | 7,202.4 | 7,195 | 7,225 | 7,195 | |
Equity issuance in connection with the Rowan Transaction | (0.6) | 1,365.5 | |||||||
Shares issued under share-based compensation plans, net | (1.1) | (0.1) | (0.4) | (0.1) | |||||
Repurchase of shares | 0.1 | ||||||||
Share-based compensation cost | 9.7 | 13.8 | 5.3 | 7.2 | 7.5 | 7.5 | |||
Ending balance | 8,617.5 | 8,608.4 | 7,230.2 | 7,216.6 | 7,209.5 | 7,202.4 | 8,617.5 | 7,216.6 | |
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 1,084.8 | 679.3 | 874.2 | 1,232 | 1,387.4 | 1,532.7 | 874.2 | 1,532.7 | |
Net loss | (197.1) | 405.5 | (190.4) | (145) | (151) | (140.1) | |||
Dividends paid | (4.5) | (4.5) | (4.4) | (4.4) | |||||
Ending balance | 887.7 | 1,084.8 | 679.3 | 1,082.5 | 1,232 | 1,387.4 | 887.7 | 1,082.5 | |
Retained Earnings | Accounting Standards Update 2018-02 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative-effect due to ASU 2018-02 | $ (0.8) | ||||||||
AOCI Attributable to Parent | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 19.9 | 19.7 | 18.2 | 20.5 | 29 | 28.6 | 18.2 | 28.6 | |
Net other comprehensive income | (1) | 0.2 | 1.5 | (1.3) | (8.5) | (0.4) | |||
Ending balance | 18.9 | 19.9 | 19.7 | 19.2 | 20.5 | 29 | 18.9 | 19.2 | |
AOCI Attributable to Parent | Accounting Standards Update 2018-02 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative-effect due to ASU 2018-02 | $ 0.8 | ||||||||
Treasury Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (75) | (74.9) | (72.2) | (72) | (70) | (69) | (72.2) | (69) | |
Equity issuance in connection with the Rowan Transaction | 2.1 | ||||||||
Shares issued under share-based compensation plans, net | (0.8) | 0.1 | (1.4) | 0.1 | |||||
Repurchase of shares | 0.2 | 1.4 | 2.8 | 0.1 | 0.6 | 1.1 | |||
Ending balance | (75.2) | (75) | (74.9) | (72.1) | (72) | (70) | (75.2) | (72.1) | |
Noncontrolling Interest | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 1.6 | (0.2) | (2.6) | (2.3) | (2.5) | (2.1) | (2.6) | (2.1) | |
Net loss | (0.4) | 1.8 | 2.4 | 2.1 | 0.9 | (0.4) | |||
Distributions to noncontrolling interests | (2.1) | ||||||||
Ending balance | $ (0.9) | $ 1.6 | $ (0.2) | $ (2.2) | $ (2.3) | $ (2.5) | $ (0.9) | $ (2.2) |
Shareholders Equity Additional
Shareholders Equity Additional Information (Details) - Rowan Companies shares in Millions, $ in Millions | Apr. 11, 2019USD ($)shares |
Aggregate value of shares | $ | $ 1,402.8 |
Class A ordinary shares, U.S. | |
Number of shares issued | shares | 88.3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Apr. 11, 2019USD ($) | |
Income Tax Contingency [Line Items] | ||||||
Discrete Income Tax Expense (Benefit) | $ 18.4 | $ 7.9 | $ 19 | $ 19.1 | ||
Income tax expense, adjusted for discrete items | 19.9 | $ 31.2 | 84.6 | $ 85.5 | ||
Tax Assessment | 42 | |||||
Deferred tax assets | 988 | 988 | ||||
Rowan Companies | ||||||
Income Tax Contingency [Line Items] | ||||||
Deferred tax assets | $ 100 | |||||
Rowan Companies | Luxembourg Inland Revenue | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax Assessment | € | € 93 | |||||
Unrecognized tax benefit, maximum exposure | € 142 | 155 | ||||
Rowan Companies | Australian Taxation Office | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax Assessment | 101 | |||||
Unrecognized tax benefit, maximum exposure | $ 29 | $ 68 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | May 01, 2019 | Jul. 31, 2019 | Jan. 31, 2019 | Sep. 30, 2019 | Jul. 30, 2019 |
Loss Contingencies [Line Items] | |||||
Decline in backlog as a result of potential contract termination | $ 14 | ||||
Letters of credit outstanding, amount | $ 90 | $ 100 | |||
SHI Matter | |||||
Loss Contingencies [Line Items] | |||||
Liabilities arising from arbitration | $ 180 | $ 10 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Leased Assets [Line Items] | ||
Cash paid for lease liabilities | $ 7.5 | $ 21.1 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease terms | 11 years |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Long-term operating lease cost | $ 8.3 | $ 21.5 |
Short-term operating lease cost | 1.3 | 5.6 |
Sublease income | (0.7) | (1.7) |
Lease, Cost, Total | $ 8.9 | $ 25.4 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||
Operating lease right-of-use assets | $ 64.9 | $ 0 |
Current lease liability | 23.4 | 0 |
Long-term lease liability | 53.5 | $ 0 |
Total operating lease liabilities | $ 76.9 | |
Weighted-average remaining lease term (in years) | 5 years 1 month 6 days | |
Weighted-average discount rate | 8.18% | |
Rowan Companies | ||
Operating Leased Assets [Line Items] | ||
Operating lease right-of-use assets | $ 12.2 | |
Current lease liability | 3.9 | |
Long-term lease liability | $ 10.6 |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 8.4 |
2020 | 24.2 |
2021 | 17.6 |
2022 | 12 |
2023 | 10.4 |
Thereafter | 22.2 |
Lessee, Operating Lease, Liability, Payments, Due, Total | 94.8 |
Less imputed interest | (17.9) |
Total operating lease liabilities | $ 76.9 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)jackup | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Reportable_segmentjackup | Sep. 30, 2018USD ($) | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Number of operating segments | Reportable_segment | 3 | |||
Number of jackups leased by ARO | jackup | 9 | 9 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | $ | $ (3.7) | $ 0 | $ (3.1) | $ 0 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 551,300,000 | $ 430,900,000 | $ 1,541,100,000 | $ 1,306,400,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 496,500,000 | 327,100,000 | 1,329,400,000 | 996,600,000 | |
Loss on impairment | 88,200,000 | 0 | 90,700,000 | 0 | |
Depreciation | 163,000,000 | 120,600,000 | 445,900,000 | 356,500,000 | |
General and administrative | 36,100,000 | 25,100,000 | 146,900,000 | 79,100,000 | |
EQUITY IN EARNINGS OF ARO | 3,700,000 | 0 | 3,100,000 | 0 | |
OPERATING LOSS | (236,200,000) | (41,900,000) | (474,900,000) | (125,800,000) | |
Property and equipment, net | 15,250,700,000 | 12,731,600,000 | 15,250,700,000 | 12,731,600,000 | $ 12,616,200,000 |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | ||||
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 0 | ||||
Depreciation | 10,300,000 | ||||
General and administrative | 79,100,000 | ||||
OPERATING LOSS | (89,400,000) | ||||
Property and equipment, net | 39,700,000 | 39,700,000 | |||
Operating Segments | Floaters | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 269,800,000 | 241,800,000 | 798,100,000 | 785,700,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 250,300,000 | 175,600,000 | 681,300,000 | 564,400,000 | |
Loss on impairment | 88,200,000 | 88,200,000 | |||
Depreciation | 98,100,000 | 77,800,000 | 281,300,000 | 233,900,000 | |
General and administrative | 0 | 0 | 0 | 0 | |
EQUITY IN EARNINGS OF ARO | 0 | 0 | |||
OPERATING LOSS | (166,800,000) | (11,600,000) | (252,700,000) | (12,600,000) | |
Property and equipment, net | 10,187,500,000 | 9,501,700,000 | 10,187,500,000 | 9,501,700,000 | |
Operating Segments | Jackups | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 217,800,000 | 173,300,000 | 604,000,000 | 475,400,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 213,500,000 | 136,400,000 | 561,100,000 | 390,100,000 | |
Loss on impairment | 0 | ||||
Depreciation | 59,000,000 | 39,300,000 | 151,400,000 | 112,300,000 | |
General and administrative | 0 | 0 | 0 | 0 | |
EQUITY IN EARNINGS OF ARO | 0 | 0 | |||
OPERATING LOSS | (54,700,000) | (2,400,000) | (108,500,000) | (27,000,000) | |
Property and equipment, net | 5,022,000,000 | 3,190,200,000 | 5,022,000,000 | 3,190,200,000 | |
Operating Segments | ARO | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 138,400,000 | 0 | 262,200,000 | 0 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 92,700,000 | 0 | 171,700,000 | 0 | |
Loss on impairment | 0 | 0 | |||
Depreciation | 14,600,000 | 0 | 26,900,000 | 0 | |
General and administrative | 8,800,000 | 0 | 13,900,000 | 0 | |
EQUITY IN EARNINGS OF ARO | 0 | 0 | |||
OPERATING LOSS | 22,300,000 | 0 | 49,700,000 | 0 | |
Property and equipment, net | 652,500,000 | 0 | 652,500,000 | 0 | |
Operating Segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 63,700,000 | 15,800,000 | 139,000,000 | 45,300,000 | |
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | 32,700,000 | 15,100,000 | 87,000,000 | 42,100,000 | |
Loss on impairment | 0 | 0 | |||
Depreciation | 0 | 0 | 0 | 0 | |
General and administrative | 0 | 0 | 0 | 0 | |
EQUITY IN EARNINGS OF ARO | 0 | 0 | |||
OPERATING LOSS | 31,000,000 | 700,000 | 52,000,000 | 3,200,000 | |
Property and equipment, net | 0 | 0 | 0 | 0 | |
Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (138,400,000) | 0 | (262,200,000) | ||
Operating Expenses [Abstract] | |||||
Contract drilling (exclusive of depreciation) | (92,700,000) | 0 | (171,700,000) | ||
Loss on impairment | 0 | 2,500,000 | |||
Depreciation | (8,700,000) | 3,500,000 | (13,700,000) | ||
General and administrative | 27,300,000 | 25,100,000 | 133,000,000 | ||
EQUITY IN EARNINGS OF ARO | 3,700,000 | 3,100,000 | |||
OPERATING LOSS | (68,000,000) | (28,600,000) | (215,400,000) | ||
Property and equipment, net | $ (611,300,000) | $ 39,700,000 | $ (611,300,000) | $ 39,700,000 |
Segment Information (Schedule_2
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details) | Sep. 30, 2019jackup |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 81 |
Number of jackups leased by ARO | 9 |
Held for Sale | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 2 |
Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 28 |
Floaters | Held for Sale | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 1 |
Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 44 |
Jackups | Held for Sale | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 1 |
Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 9 |
Other | Held for Sale | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 7 |
ARO | Held for Sale | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
North & South America (Excl. Brazil) | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 19 |
North & South America (Excl. Brazil) | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 11 |
North & South America (Excl. Brazil) | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 8 |
North & South America (Excl. Brazil) | Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
North & South America (Excl. Brazil) | ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Europe & Mediterranean | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 21 |
Europe & Mediterranean | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 6 |
Europe & Mediterranean | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 15 |
Europe & Mediterranean | Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Europe & Mediterranean | ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Middle East & Africa | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 27 |
Middle East & Africa | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 5 |
Middle East & Africa | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 13 |
Middle East & Africa | Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 9 |
Middle East & Africa | ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 7 |
Asia & Pacific Rim | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 10 |
Asia & Pacific Rim | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 3 |
Asia & Pacific Rim | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 7 |
Asia & Pacific Rim | Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Asia & Pacific Rim | ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Construction in Progress | Asia & Pacific Rim | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 2 |
Construction in Progress | Asia & Pacific Rim | Floaters | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 2 |
Construction in Progress | Asia & Pacific Rim | Jackups | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Construction in Progress | Asia & Pacific Rim | Other | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs (in rigs) | 0 |
Construction in Progress | Asia & Pacific Rim | ARO | |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 574.8 | $ 348.1 |
Allowance for doubtful accounts | (7.8) | (3.4) |
Accounts receivable, net | 567 | 344.7 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 518.7 | 301.7 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 56.1 | $ 46.4 |
Supplemental Financial Inform_4
Supplemental Financial Information (Other Current Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Materials and supplies | $ 347.1 | $ 268.1 |
Prepaid Taxes | 59.2 | 35 |
Other Deferred Costs, Net | 25.2 | 23.5 |
Prepaid expenses | 17.3 | 15.2 |
Assets held-for-sale | 8.9 | 0 |
Other | 29.8 | 19.1 |
Other current assets | $ 487.5 | $ 360.9 |
Supplemental Financial Inform_5
Supplemental Financial Information (Other Assets, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Operating lease right-of-use assets | $ 64.9 | $ 0 |
Deferred tax assets | 42.7 | 29.4 |
Tax receivables | 36.6 | 8.4 |
Supplemental executive retirement plan assets | 25.1 | 27.2 |
Deferred costs | 10.5 | 21.5 |
Intangible Assets, Net (Excluding Goodwill) | 13.4 | 2.5 |
Other | 11.6 | 8.8 |
Other assets, net | $ 204.8 | $ 97.8 |
Supplemental Financial Inform_6
Supplemental Financial Information (Accrued Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Accrued interest | $ 99 | $ 100.6 |
Personnel costs | 117.9 | 82.5 |
Taxes | 65.3 | 36.9 |
Deferred revenue | 24.6 | 56.9 |
Other Accrued Liabilities, Current | 7.2 | 14.3 |
Current lease liability | 23.4 | 0 |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 34.1 | 0 |
Derivative liabilities | 7.8 | 10.9 |
Other | 28.4 | 15.9 |
Accrued liabilities and other | $ 407.7 | $ 318 |
Supplemental Financial Inform_7
Supplemental Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Unrecognized tax benefits (inclusive of interest and penalties) | $ 313.5 | $ 177 |
Liability, Pension and Other Postretirement and Postemployment Benefits, Noncurrent | 194.5 | 0 |
Deferred Tax Liabilities, Net, Noncurrent | 88.4 | 70.7 |
Intangible Liabilities Noncurrent | 52.7 | 53.5 |
Long-term lease liability | 53.5 | 0 |
Supplemental executive retirement plan liabilities | 25.6 | 28.1 |
Deferred tax liabilities | 21 | 25.1 |
Deferred revenue | 11.7 | 20.5 |
Deferred rent | 0 | 11.7 |
Other | 37.3 | 9.4 |
Other liabilities | $ 798.2 | $ 396 |
Supplemental Financial Inform_8
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental Financial Information [Abstract] | ||
Derivative instruments | $ 13.6 | $ 12.6 |
Currency translation adjustment | 7 | 7.3 |
Other | (1.7) | (1.7) |
Accumulated other comprehensive income | $ 18.9 | $ 18.2 |
Supplemental Financial Inform_9
Supplemental Financial Information Schedule of Revenue by Major Customers, by Reporting Segments (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Benchmark | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 84.00% | 89.00% | 88.00% | 90.00% |
Revenue Benchmark | Saudi Aramco | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 16.00% | 11.00% | 12.00% | 10.00% |
Revenue Benchmark | Total S.A. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 15.00% | 14.00% | 15.00% | 14.00% |
Revenue Benchmark | BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 10.00% | 5.00% | 8.00% | 7.00% |
Revenue Benchmark | INPEX | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 7.00% | 10.00% | 7.00% | 7.00% |
Revenue Benchmark | Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 52.00% | 60.00% | 58.00% | 62.00% |
Floaters | Revenue Benchmark | BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 17.00% | 16.00% | 33.00% | |
Floaters | Segment Benchmark | Total S.A. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 90.00% | 93.00% | ||
Jackups | Revenue Benchmark | BP | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 43.00% | 27.00% | 41.00% | 18.00% |
Supplemental Financial Infor_10
Supplemental Financial Information Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 551.3 | $ 430.9 | $ 1,541.1 | $ 1,306.4 |
Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 551.3 | 430.9 | 1,541.1 | 1,306.4 |
Geographic Concentration Risk | US Gulf Of Mexico | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 83.1 | 59.3 | 231.2 | 172.4 |
Geographic Concentration Risk | SAUDI ARABIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 90.3 | 49 | 226.9 | 131.8 |
Geographic Concentration Risk | AUSTRALIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 51.6 | 75.1 | 189 | 207.7 |
Geographic Concentration Risk | ANGOLA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 72.1 | 76.2 | 210.8 | 209.5 |
Geographic Concentration Risk | UNITED KINGDOM | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 59.6 | 55.4 | 157.2 | 155.7 |
Geographic Concentration Risk | Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 194.6 | $ 115.9 | $ 526 | $ 429.3 |
Jackups | Geographic Concentration Risk | US Gulf Of Mexico | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 22.00% | 39.00% | 35.00% | 38.00% |
Jackups | Geographic Concentration Risk | SAUDI ARABIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 58.00% | 69.00% | ||
Floaters | Geographic Concentration Risk | US Gulf Of Mexico | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 52.00% | 35.00% | 40.00% | 36.00% |
Floaters | Geographic Concentration Risk | AUSTRALIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 99.00% | 87.00% | 95.00% | 94.00% |
Floaters | Geographic Concentration Risk | ANGOLA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 86.00% | 82.00% | 87.00% |
Guarantee Of Registered Secur_3
Guarantee Of Registered Securities (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Senior notes aggregate outstanding principal balance | $ 422.8 | |
7.88% Senior notes due 2019 | ||
Guarantor Obligations [Line Items] | ||
Debt instrument interest rate stated percentage | 6.875% | 6.875% |
Senior note, maturity year | 2020 | |
7.875% Senior notes due 2040 | ||
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 | $ 112.1 | |
Pride International Inc and Ensco International Inc | ||
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Guarantor Obligations [Line Items] | ||||
Revenues | $ 551.3 | $ 430.9 | $ 1,541.1 | $ 1,306.4 |
Contract drilling (exclusive of depreciation) | 496.5 | 327.1 | 1,329.4 | 996.6 |
Loss on impairment | 88.2 | 0 | 90.7 | 0 |
Depreciation | 163 | 120.6 | 445.9 | 356.5 |
General and administrative | 36.1 | 25.1 | 146.9 | 79.1 |
Total operating expenses | 783.8 | 472.8 | 2,012.9 | 1,432.2 |
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | (3.7) | 0 | (3.1) | 0 |
Operating Income (Loss) | (236.2) | (41.9) | (474.9) | (125.8) |
OTHER INCOME (EXPENSE), NET | 40.2 | (77.7) | 562.3 | (233.2) |
LOSS BEFORE INCOME TAXES | (196) | (119.6) | 87.4 | (359) |
INCOME TAX PROVISION | 1.5 | 23.3 | 65.6 | 66.4 |
Equity in Earnings of Subsidiaries Net of Tax | 0 | 0 | ||
DISCONTINUED OPERATIONS, NET | 0 | (8.1) | ||
NET LOSS | (197.5) | (142.9) | 21.8 | (433.5) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
NET LOSS ATTRIBUTABLE TO VALARIS | (197.1) | (145) | 18 | (436.1) |
Valaris plc | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 15.7 | 12.1 | 47 | 36.7 |
Contract drilling (exclusive of depreciation) | 19.3 | 15.2 | 49.3 | 41.6 |
Depreciation | 0 | 0 | 0 | 0 |
General and administrative | 9.7 | 10.5 | 71 | 31 |
Total operating expenses | 29 | 120.3 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | (130.8) | (400.1) | ||
Operating Income (Loss) | (13.3) | (13.6) | (73.3) | (35.9) |
OTHER INCOME (EXPENSE), NET | 94.7 | (0.6) | 773.5 | (0.1) |
LOSS BEFORE INCOME TAXES | 81.4 | (14.2) | 700.2 | (36) |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | (278.5) | (682.2) | ||
DISCONTINUED OPERATIONS, NET | 0 | |||
NET LOSS | (197.1) | (145) | 18 | (436.1) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET LOSS ATTRIBUTABLE TO VALARIS | (197.1) | (145) | 18 | (436.1) |
ENSCO International Incorporated | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 53 | 40.7 | 128.6 | 120.8 |
Contract drilling (exclusive of depreciation) | 45.3 | 36.4 | 112.8 | 109.2 |
Depreciation | 7.7 | 3.6 | 15.4 | 10.6 |
General and administrative | 0.1 | 1.9 | 0.3 | 2.2 |
Total operating expenses | 53.1 | 128.5 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 28.2 | 77.7 | ||
Operating Income (Loss) | (0.1) | (1.2) | 0.1 | (1.2) |
OTHER INCOME (EXPENSE), NET | (5.6) | (32.6) | (36.6) | (101.1) |
LOSS BEFORE INCOME TAXES | (5.7) | (33.8) | (36.5) | (102.3) |
INCOME TAX PROVISION | (18.4) | 9.5 | 10.6 | 32.4 |
Equity in Earnings of Subsidiaries Net of Tax | (40.2) | 35.1 | ||
DISCONTINUED OPERATIONS, NET | 0 | |||
NET LOSS | (27.5) | (15.1) | (12) | (57) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET LOSS ATTRIBUTABLE TO VALARIS | (27.5) | (15.1) | (12) | (57) |
Pride International LLC | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Contract drilling (exclusive of depreciation) | 0 | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 23.1 | 69.1 | ||
Operating Income (Loss) | 0 | 0 | 0 | 0 |
OTHER INCOME (EXPENSE), NET | (20.2) | (19.5) | (61) | (69.5) |
LOSS BEFORE INCOME TAXES | (20.2) | (19.5) | (61) | (69.5) |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | (68) | (14.9) | ||
DISCONTINUED OPERATIONS, NET | 0 | |||
NET LOSS | (88.2) | 3.6 | (75.9) | (0.4) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET LOSS ATTRIBUTABLE TO VALARIS | (88.2) | 3.6 | (75.9) | (0.4) |
Other Non-Guarantor Subsidiaries of Valaris | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | 588.8 | 459.2 | 1,627.1 | 1,387 |
Contract drilling (exclusive of depreciation) | 538.1 | 356.6 | 1,428.9 | 1,083.9 |
Loss on impairment | 88.2 | 90.7 | ||
Depreciation | 155.3 | 117 | 430.5 | 345.9 |
General and administrative | 26.3 | 12.7 | 75.6 | 45.9 |
Total operating expenses | 807.9 | 2,025.7 | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | (3.7) | 0 | (3.1) | 0 |
Operating Income (Loss) | (222.8) | (27.1) | (401.7) | (88.7) |
OTHER INCOME (EXPENSE), NET | (33) | (29) | (126.3) | (85.9) |
LOSS BEFORE INCOME TAXES | (255.8) | (56.1) | (528) | (174.6) |
INCOME TAX PROVISION | 19.9 | 13.8 | 55 | 34 |
Equity in Earnings of Subsidiaries Net of Tax | 0 | 0 | ||
DISCONTINUED OPERATIONS, NET | (8.1) | |||
NET LOSS | (275.7) | (69.9) | (583) | (216.7) |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
NET LOSS ATTRIBUTABLE TO VALARIS | (275.3) | (72) | (586.8) | (219.3) |
Consolidating Adjustments | ||||
Guarantor Obligations [Line Items] | ||||
Revenues | (106.2) | (81.1) | (261.6) | (238.1) |
Contract drilling (exclusive of depreciation) | (106.2) | (81.1) | (261.6) | (238.1) |
Depreciation | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Total operating expenses | (106.2) | (261.6) | ||
EQUITY EARNINGS IN AFFILIATES, NET OF TAX | 79.5 | 253.3 | ||
Operating Income (Loss) | 0 | 0 | 0 | 0 |
OTHER INCOME (EXPENSE), NET | 4.3 | 4 | 12.7 | 23.4 |
LOSS BEFORE INCOME TAXES | 4.3 | 4 | 12.7 | 23.4 |
INCOME TAX PROVISION | 0 | 0 | 0 | 0 |
Equity in Earnings of Subsidiaries Net of Tax | 386.7 | 662 | ||
DISCONTINUED OPERATIONS, NET | 0 | |||
NET LOSS | 391 | 83.5 | 674.7 | 276.7 |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET LOSS ATTRIBUTABLE TO VALARIS | $ 391 | $ 83.5 | $ 674.7 | $ 276.7 |
Guarantee Of Registered Secur_5
Guarantee Of Registered Securities (Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
NET LOSS | $ (197.5) | $ (142.9) | $ 21.8 | $ (433.5) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | (5.7) | (1.9) | (7.3) | (7.6) |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 4.9 | 0.7 | 8.3 | (2.2) |
Other | (0.2) | (0.1) | (0.3) | (0.4) |
NET OTHER COMPREHENSIVE LOSS | (1) | (1.3) | 0.7 | (10.2) |
COMPREHENSIVE LOSS | (198.5) | (144.2) | 22.5 | (443.7) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | (198.1) | (146.3) | 18.7 | (446.3) |
Valaris plc | ||||
NET LOSS | (197.1) | (145) | 18 | (436.1) |
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 LOSS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS | (197.1) | (145) | 18 | (436.1) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | (197.1) | (145) | 18 | (436.1) |
ENSCO International Incorporated | ||||
NET LOSS | (27.5) | (15.1) | (12) | (57) |
OTHER COMPREHENSIVE INCOME (LOSS), NET: | ||||
Net change in derivative fair value | (5.7) | (1.9) | (7.3) | (7.6) |
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income | 4.9 | 0.7 | 8.3 | (2.2) |
Other | 0 | 0 | 0 | 0 |
NET OTHER COMPREHENSIVE LOSS | (0.8) | (1.2) | 1 | (9.8) |
COMPREHENSIVE LOSS | (28.3) | (16.3) | (11) | (66.8) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | (28.3) | (16.3) | (11) | (66.8) |
Pride International LLC | ||||
NET LOSS | (88.2) | 3.6 | (75.9) | (0.4) |
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 | |
NET OTHER COMPREHENSIVE LOSS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS | (88.2) | 3.6 | (75.9) | (0.4) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | (88.2) | 3.6 | (75.9) | (0.4) |
Other Non-Guarantor Subsidiaries of Valaris | ||||
NET LOSS | (275.7) | (69.9) | (583) | (216.7) |
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 | (0.2) | (0.1) | (0.3) | (0.4) |
NET OTHER COMPREHENSIVE LOSS | (0.2) | (0.1) | (0.3) | (0.4) |
COMPREHENSIVE LOSS | (275.9) | (70) | (583.3) | (217.1) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0.4 | (2.1) | (3.8) | (2.6) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | (275.5) | (72.1) | (587.1) | (219.7) |
Consolidating Adjustments | ||||
NET LOSS | 391 | 83.5 | 674.7 | 276.7 |
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 LOSS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS | 391 | 83.5 | 674.7 | 276.7 |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ 391 | $ 83.5 | $ 674.7 | $ 276.7 |
Guarantee Of Registered Secur_6
Guarantee Of Registered Securities (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||||||
Cash and cash equivalents | $ 129.5 | $ 275.1 | $ 275.1 | $ 196 | $ 445.4 | $ 445.4 |
Short-term investments | 0 | 329 | ||||
Accounts receivable, net | 567 | 344.7 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Other current assets | 487.5 | 360.9 | ||||
Total current assets | 1,184 | 1,309.7 | ||||
PROPERTY AND EQUIPMENT, AT COST | 18,392.9 | 15,517 | ||||
Less accumulated depreciation | 3,142.2 | 2,900.8 | ||||
Property and equipment, net | 15,250.7 | 12,616.2 | 12,731.6 | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | 452.9 | 0 | ||||
INVESTMENT IN ARO | 138.2 | 0 | ||||
DUE FROM AFFILIATES | 0 | 0 | ||||
Investment in and advances to Consolidated Subsidiaries | 0 | 0 | ||||
OTHER ASSETS | 204.8 | 97.8 | ||||
TOTAL ASSETS | 17,230.6 | 14,023.7 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 734.1 | 528.5 | ||||
Accounts payable to affiliates | 0 | 0 | ||||
Less: current maturities | 125.5 | 0 | ||||
Total current liabilities | 859.6 | 528.5 | ||||
Due to Affiliate | 0 | 0 | ||||
Long-term Debt, Excluding Current Maturities | 6,042.3 | 5,010.4 | ||||
OTHER LIABILITIES | 798.2 | 396 | ||||
ENSCO SHAREHOLDERS' EQUITY | 9,531.4 | 8,091.4 | ||||
NONCONTROLLING INTERESTS | (0.9) | (2.6) | ||||
Total equity | 9,530.5 | 8,088.8 | ||||
Total liabilities and shareholders' equity | 17,230.6 | 14,023.7 | ||||
Valaris plc | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 72.5 | 199.8 | 146.7 | 185.2 | ||
Short-term investments | 0 | 329 | ||||
Accounts receivable, net | 2 | 7.3 | ||||
Accounts receivable from affiliates | 3,282 | 1,861.2 | ||||
Other current assets | 0 | 0.6 | ||||
Total current assets | 3,356.5 | 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 | 1,100 | 2,413.8 | ||||
Investment in and advances to Consolidated Subsidiaries | 9,934.2 | 8,522.6 | ||||
OTHER ASSETS | 1.5 | 8.1 | ||||
TOTAL ASSETS | 14,392.2 | 13,342.4 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 81.6 | 85.3 | ||||
Accounts payable to affiliates | 213.7 | 59.7 | ||||
Less: current maturities | 0 | |||||
Total current liabilities | 295.3 | 145 | ||||
Due to Affiliate | 1,454.3 | 1,432 | ||||
Long-term Debt, Excluding Current Maturities | 3,122.7 | 3,676.5 | ||||
OTHER LIABILITIES | (10.6) | 0.1 | ||||
ENSCO SHAREHOLDERS' EQUITY | 9,530.5 | 8,088.8 | ||||
NONCONTROLLING INTERESTS | 0 | 0 | ||||
Total equity | 9,530.5 | 8,088.8 | ||||
Total liabilities and shareholders' equity | 14,392.2 | 13,342.4 | ||||
ENSCO International Incorporated | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | 25.4 | 25.4 | ||||
Accounts receivable from affiliates | 372.2 | 171.4 | ||||
Other current assets | 8.9 | 6 | ||||
Total current assets | 406.5 | 202.8 | ||||
PROPERTY AND EQUIPMENT, AT COST | 123.2 | 125.2 | ||||
Less accumulated depreciation | 82.8 | 91.3 | ||||
Property and equipment, net | 40.4 | 33.9 | ||||
DUE FROM AFFILIATES | 0 | 234.5 | ||||
Investment in and advances to Consolidated Subsidiaries | 776.1 | 3,713.7 | ||||
OTHER ASSETS | 0 | 0 | ||||
TOTAL ASSETS | 1,223 | 4,184.9 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 22.1 | 32 | ||||
Accounts payable to affiliates | 112.9 | 139.5 | ||||
Less: current maturities | 0 | |||||
Total current liabilities | 135 | 171.5 | ||||
Due to Affiliate | 542.4 | 1,226.9 | ||||
Long-term Debt, Excluding Current Maturities | 111.7 | 149.3 | ||||
OTHER LIABILITIES | 56 | 64.3 | ||||
ENSCO SHAREHOLDERS' EQUITY | 377.9 | 2,572.9 | ||||
NONCONTROLLING INTERESTS | 0 | 0 | ||||
Total equity | 377.9 | 2,572.9 | ||||
Total liabilities and shareholders' equity | 1,223 | 4,184.9 | ||||
Pride International LLC | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 0 | 2.7 | 5.9 | 25.6 | ||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable from affiliates | 2 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 2 | 2.7 | ||||
PROPERTY AND EQUIPMENT, AT COST | 0 | 0 | ||||
Less accumulated depreciation | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
DUE FROM AFFILIATES | 38.9 | 125 | ||||
Investment in and advances to Consolidated Subsidiaries | 1,184.9 | 1,199.9 | ||||
OTHER ASSETS | 0 | 0 | ||||
TOTAL ASSETS | 1,225.8 | 1,327.6 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 4.7 | 12.7 | ||||
Accounts payable to affiliates | 796.8 | 38.2 | ||||
Less: current maturities | 125.5 | |||||
Total current liabilities | 927 | 50.9 | ||||
Due to Affiliate | 593.6 | 1,366.5 | ||||
Long-term Debt, Excluding Current Maturities | 373.6 | 502.6 | ||||
OTHER LIABILITIES | 0 | 0 | ||||
ENSCO SHAREHOLDERS' EQUITY | (668.4) | (592.4) | ||||
NONCONTROLLING INTERESTS | 0 | 0 | ||||
Total equity | (668.4) | (592.4) | ||||
Total liabilities and shareholders' equity | 1,225.8 | 1,327.6 | ||||
Other Non-Guarantor Subsidiaries of Valaris | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 57 | 72.6 | 43.4 | 234.6 | ||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | 539.6 | 312 | ||||
Accounts receivable from affiliates | 280.5 | 131.7 | ||||
Other current assets | 478.6 | 354.3 | ||||
Total current assets | 1,355.7 | 870.6 | ||||
PROPERTY AND EQUIPMENT, AT COST | 18,267.9 | 15,390 | ||||
Less accumulated depreciation | 3,057.6 | 2,807.7 | ||||
Property and equipment, net | 15,210.3 | 12,582.3 | ||||
LONG-TERM NOTES RECEIVABLE FROM ARO | 452.9 | |||||
INVESTMENT IN ARO | 138.2 | |||||
DUE FROM AFFILIATES | 2,590.3 | 2,715.1 | ||||
Investment in and advances to Consolidated Subsidiaries | 0 | 0 | ||||
OTHER ASSETS | 203.3 | 89.7 | ||||
TOTAL ASSETS | 19,950.7 | 16,257.7 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 625.7 | 398.5 | ||||
Accounts payable to affiliates | 2,813.3 | 1,926.9 | ||||
Less: current maturities | 0 | |||||
Total current liabilities | 3,439 | 2,325.4 | ||||
Due to Affiliate | 1,138.9 | 1,463 | ||||
Long-term Debt, Excluding Current Maturities | 2,434.3 | 682 | ||||
OTHER LIABILITIES | 752.8 | 331.6 | ||||
ENSCO SHAREHOLDERS' EQUITY | 12,186.6 | 11,458.3 | ||||
NONCONTROLLING INTERESTS | (0.9) | (2.6) | ||||
Total equity | 12,185.7 | 11,455.7 | ||||
Total liabilities and shareholders' equity | 19,950.7 | 16,257.7 | ||||
Consolidating Adjustments | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable from affiliates | (3,936.7) | (2,164.3) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (3,936.7) | (2,164.3) | ||||
PROPERTY AND EQUIPMENT, AT COST | 0 | 0 | ||||
Less accumulated depreciation | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
DUE FROM AFFILIATES | (3,729.2) | (5,488.4) | ||||
Investment in and advances to Consolidated Subsidiaries | (11,895.2) | (13,436.2) | ||||
OTHER ASSETS | 0 | 0 | ||||
TOTAL ASSETS | (19,561.1) | (21,088.9) | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Accounts payable to affiliates | (3,936.7) | (2,164.3) | ||||
Less: current maturities | 0 | |||||
Total current liabilities | (3,936.7) | (2,164.3) | ||||
Due to Affiliate | (3,729.2) | (5,488.4) | ||||
Long-term Debt, Excluding Current Maturities | 0 | 0 | ||||
OTHER LIABILITIES | 0 | 0 | ||||
ENSCO SHAREHOLDERS' EQUITY | (11,895.2) | (13,436.2) | ||||
NONCONTROLLING INTERESTS | 0 | 0 | ||||
Total equity | (11,895.2) | (13,436.2) | ||||
Total liabilities and shareholders' equity | $ (19,561.1) | $ (21,088.9) |
Guarantee Of Registered Secur_7
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | $ (427.5) | $ (82.2) |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 931.9 | 0 |
Maturities of short-term investments | 474 | 675 |
Purchases of short-term investments | (145) | (669) |
Additions to property and equipment | (174.2) | (378.7) |
Other | 4.9 | 10 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Net cash provided by (used in) investing activities of continuing operations | 1,091.6 | (362.7) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 1,000 | |
Reduction of long-term borrowings | (928.1) | (771.2) |
Cash dividends paid | (4.5) | (13.4) |
Borrowings on credit facility | 175 | 0 |
Debt issuance costs | 0 | 17 |
Repayments of credit facility borrowings | 34.4 | 0 |
Repayments of credit facility borrowings | 9.4 | 0 |
Debt solicitation fees | (9.4) | 0 |
Other | (7.7) | (4.7) |
Advances from affiliates | 0 | |
Net cash provided by (used in) financing activities | (809.1) | 193.7 |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | (0.7) |
DECREASE IN CASH AND CASH EQUIVALENTS | (145.6) | (249.4) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 275.1 | 445.4 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 129.5 | 196 |
Valaris plc | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (125.2) | 19.7 |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 0 | |
Maturities of short-term investments | 474 | 675 |
Purchases of short-term investments | (145) | (669) |
Additions to property and equipment | 0 | 0 |
Other | 0 | 0 |
Sale of Affiliate Debt | 479 | |
Purchase of Affiliate Debt | 552.5 | |
Net cash provided by (used in) investing activities of continuing operations | 329 | (67.5) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 1,000 | |
Reduction of long-term borrowings | (536.6) | (159.9) |
Cash dividends paid | (4.5) | (13.4) |
Borrowings on credit facility | 175 | |
Debt issuance costs | 17 | |
Repayments of credit facility borrowings | 34.4 | |
Other | (5.3) | (1.9) |
Advances from affiliates | 74.7 | 798.5 |
Net cash provided by (used in) financing activities | (331.1) | 9.3 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
DECREASE IN CASH AND CASH EQUIVALENTS | (127.3) | (38.5) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 199.8 | 185.2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 72.5 | 146.7 |
ENSCO International Incorporated | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (82.3) | (257.2) |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Other | 0 | 0 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Net cash provided by (used in) investing activities of continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 0 | |
Reduction of long-term borrowings | (30.4) | 0 |
Cash dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Repayments of credit facility borrowings | 0 | |
Other | 0 | 0 |
Advances from affiliates | 112.7 | 257.2 |
Net cash provided by (used in) financing activities | 82.3 | 257.2 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
DECREASE 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 | (98) | (85.1) |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Other | 0 | 0 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Net cash provided by (used in) investing activities of continuing operations | 0 | 0 |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 0 | |
Reduction of long-term borrowings | 0 | (537.8) |
Cash dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Repayments of credit facility borrowings | 0 | |
Other | 0 | 0 |
Advances from affiliates | 95.3 | 603.2 |
Net cash provided by (used in) financing activities | 95.3 | 65.4 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
DECREASE IN CASH AND CASH EQUIVALENTS | (2.7) | (19.7) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2.7 | 25.6 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 5.9 |
Other Non-Guarantor Subsidiaries of Valaris | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | (122) | 240.4 |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 931.9 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | (174.2) | (378.7) |
Other | 4.9 | 10 |
Sale of Affiliate Debt | 0 | |
Purchase of Affiliate Debt | 0 | |
Net cash provided by (used in) investing activities of continuing operations | 762.6 | (368.7) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 0 | |
Reduction of long-term borrowings | (361.1) | 0 |
Cash dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Repayments of credit facility borrowings | 9.4 | |
Debt solicitation fees | (9.4) | |
Other | (2.4) | (2.8) |
Advances from affiliates | 282.7 | 61.9 |
Net cash provided by (used in) financing activities | (655.6) | (64.7) |
Net cash provided by discontinued operations | 0 | 2.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | (0.7) |
DECREASE IN CASH AND CASH EQUIVALENTS | (15.6) | (191.2) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 72.6 | 234.6 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 57 | 43.4 |
Consolidating Adjustments | ||
OPERATING ACTIVITIES | ||
Net cash (used in) provided by operating activities of continuing operations | 0 | 0 |
INVESTING ACTIVITIES | ||
Rowan cash acquired | 0 | |
Maturities of short-term investments | 0 | 0 |
Purchases of short-term investments | 0 | 0 |
Additions to property and equipment | 0 | 0 |
Other | 0 | 0 |
Sale of Affiliate Debt | (479) | |
Purchase of Affiliate Debt | (552.5) | |
Net cash provided by (used in) investing activities of continuing operations | 0 | 73.5 |
FINANCING ACTIVITIES | ||
Proceeds from issuance of senior notes | 0 | |
Reduction of long-term borrowings | 0 | (73.5) |
Cash dividends paid | 0 | 0 |
Debt issuance costs | 0 | |
Repayments of credit facility borrowings | 0 | |
Other | 0 | 0 |
Advances from affiliates | 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 | |
DECREASE 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 |