Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | Sep. 30, 2009
| Dec. 31, 2008
|
CURRENT ASSETS | ||
Cash and cash equivalents | 957.5 | 712.5 |
Trade receivables, net | 328.8 | 438.8 |
Deferred income taxes | 14.9 | 90.5 |
Prepaid expenses and other current assets | 118.1 | 177.4 |
Assets held for sale | 0 | 1.4 |
Total current assets | 1419.3 | 1420.6 |
PROPERTY AND EQUIPMENT | 5815.5 | 6067.8 |
Less: accumulated depreciation | 1163.1 | 1474.9 |
Property and equipment, net | 4652.4 | 4592.9 |
INTANGIBLE AND OTHER ASSETS | 83.2 | 55.5 |
Total assets | 6154.9 | 6,069 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 30.3 | 30.3 |
Accounts payable | 125.5 | 137.3 |
Accrued expenses and other current liabilities | 353.8 | 403.4 |
Total current liabilities | 509.6 | 571 |
OTHER LONG-TERM LIABILITIES | 120.3 | 146.2 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 1169.4 | 692.9 |
DEFERRED INCOME TAXES | 85.3 | 258.9 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value; 50.0 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 400.0 shares authorized; 174.9 and 173.8 shares issued; 174.0 and 173.1 shares outstanding | 1.7 | 1.7 |
Paid-in capital | 2038.2 | 2002.6 |
Treasury stock, at cost; 0.9 and 0.7 shares | -16.3 | -13.3 |
Retained earnings | 2243.6 | 2408.2 |
Accumulated other comprehensive income | 3.1 | 0.8 |
Total stockholders' equity | 4270.3 | 4,400 |
Total liabilities and stockholders' equity | 6154.9 | $6,069 |
Parenthetical Data to the Conso
Parenthetical Data to the Consolidated Balance Sheets (USD $) | ||
Share data in Millions, except Per Share data | Sep. 30, 2009
| Dec. 31, 2008
|
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value (in dollars per share) | 0.01 | 0.01 |
Preferred stock, shares authorized (in shares) | 50 | 50 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | 0.01 | 0.01 |
Common stock, shares authorized (in shares) | 400 | 400 |
Common stock, shares issued (in shares) | 174.9 | 173.8 |
Common stock, shares outstanding (in shares) | 174 | 173.1 |
Treasury stock, shares (in shares) | 0.9 | 0.7 |
Consolidated Statements of Oper
Consolidated Statements of Operations (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
REVENUES | ||||
Revenues excluding reimbursable revenues | 379.5 | 455.5 | $1,253 | 1181.4 |
Reimbursable revenues | 6.6 | 7.8 | 24.4 | 31 |
REVENUES | 386.1 | 463.3 | 1277.4 | 1212.4 |
COSTS AND EXPENSES | ||||
Operating costs, excluding depreciation and amortization | 210.6 | 206.4 | 615.9 | 565.7 |
Reimbursable costs | 5.8 | 7.4 | 21.6 | 29.8 |
Depreciation and amortization | 39.5 | 38 | 118.3 | 109.7 |
General and administrative, excluding depreciation and amortization | 30.2 | 26.5 | 85.3 | 95.5 |
Loss (gain) on sale of assets, net | -0.1 | 0 | -0.5 | 0.5 |
COSTS AND EXPENSES | 286 | 278.3 | 840.6 | 801.2 |
EARNINGS FROM OPERATIONS | 100.1 | 185 | 436.8 | 411.2 |
OTHER INCOME (EXPENSE), NET | ||||
Interest expense, net | 0 | -2.1 | -0.1 | -19.9 |
Refinancing charges | 0 | 0 | 0 | -1.2 |
Interest income | 0.6 | 2.9 | 2.6 | 15.1 |
Other income (expense), net | -2.7 | 6.1 | -3.3 | 15.7 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 98 | 191.9 | 436 | 420.9 |
INCOME TAXES | -18.1 | -47.7 | -72.5 | -84.6 |
INCOME FROM CONTINUING OPERATIONS, NET OF TAX | 79.9 | 144.2 | 363.5 | 336.3 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | -44.3 | 44.9 | -44.9 | 280.1 |
NET INCOME | 35.6 | 189.1 | 318.6 | 616.4 |
BASIC EARNINGS PER SHARE | ||||
Income from continuing operations | 0.45 | 0.82 | 2.06 | 1.96 |
Income (loss) from discontinued operations | -0.26 | 0.26 | -0.26 | 1.63 |
Net income | 0.19 | 1.08 | 1.8 | 3.59 |
DILUTED EARNINGS PER SHARE | ||||
Income from continuing operations | 0.45 | 0.82 | 2.06 | 1.89 |
Income (loss) from discontinued operations | -0.25 | 0.26 | -0.26 | 1.58 |
Net income | 0.2 | 1.08 | 1.8 | 3.47 |
SHARES USED IN PER SHARE CALCULATIONS | ||||
Basic | 173.5 | 172.7 | 173.4 | 169.9 |
Diluted | 174 | 173.3 | 173.7 | 176 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 |
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | ||
Net Income | 318.6 | 616.4 |
Adjustments to reconcile net income to net cash from operating activities | ||
Gain on sale of Eastern Hemisphere land rigs | -5.4 | 0 |
Gain on sale of tender-assist rigs | 0 | -112.7 |
Gain on sale of Latin America and E&P Services segments | 0 | -33.6 |
Gain on sale of equity method investment | 0 | -11.4 |
Depreciation and amortization | 155.8 | 159.3 |
Amortization and write-offs of deferred financing costs | 1.6 | 3.5 |
Amortization of deferred contract liabilities | -40.3 | -45.6 |
Asset Impairment Charges | 33.4 | 0 |
Gain on sales of assets, net | -0.5 | -20.8 |
Deferred income taxes | -23.9 | 56.2 |
Excess tax benefits from stock-based compensation | (1) | -6.6 |
Stock-based compensation | 28.8 | 17.8 |
Other, net | 0.6 | 2 |
Net effect of changes in operating accounts (See Note 11) | 59.3 | -178.3 |
Change in deferred gain on asset sales and retirements | 4.9 | -12.6 |
Increase (decrease) in deferred revenue | 0.6 | -4.2 |
Decrease (increase) in deferred expense | -0.4 | 3 |
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 532.1 | 432.4 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Purchases of property and equipment | -698.6 | -752.8 |
Reduction of cash from spin-off of Seahawk | -82.4 | 0 |
Proceeds from dispositions of property and equipment | 7.3 | 0.9 |
Proceeds from the sale of Eastern Hemisphere land rigs, net | 9.6 | 0 |
Proceeds from sale of tender-assist rigs, net | 0 | 210.8 |
Proceeds from sale of platform rigs, net | 0 | 64.5 |
Proceeds from sale of equity method investment | 0 | 15 |
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | -764.1 | -461.6 |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of borrowings | -22.3 | -529.1 |
Proceeds from debt borrowings | 498.2 | 68 |
Debt finance costs | -6.2 | 0 |
Net proceeds from employee stock transactions | 6.3 | 21.2 |
Excess tax benefits from stock-based compensation | 1 | 6.6 |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | 477 | -433.3 |
Increase (decrease) in cash and cash equivalents | 245 | -462.5 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 712.5 | 890.4 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 957.5 | 427.9 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity (USD $) | ||||||
In Millions | Common Stock
| Paid-in Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income
| Total
|
Shares: Balance at Dec. 31, 2008 | 173.8 | 0.7 | ||||
Balance at Dec. 31, 2008 | 1.7 | 2002.6 | -13.3 | 2408.2 | 0.8 | $4,400 |
Comprehensive income | ||||||
Net Income | 318.6 | 318.6 | ||||
Foreign Currency Translation | 2.2 | 2.2 | ||||
Foreign Currency Hedges, Net of Tax | 0.1 | 0.1 | ||||
Total comprehensive income | 318.6 | 2.3 | 320.9 | |||
Exercise of Stock Options, Value | 4.2 | 4.2 | ||||
Exercise of Stock Options, Shares | 0.2 | |||||
Tax deficiency from stock-based compensation | -1.1 | -1.1 | ||||
Stock-based compensation, net: Value | 32.5 | (3) | 29.5 | |||
Stock-based compensation, net: Shares | 0.9 | 0.2 | ||||
Spin-off of Seahawk | -483.2 | -483.2 | ||||
Shares: Balance at Sep. 30, 2009 | 174.9 | 0.9 | ||||
Balance at Sep. 30, 2009 | 1.7 | 2038.2 | -16.3 | 2243.6 | 3.1 | 4270.3 |
GENERAL
GENERAL | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 1. General | NOTE 1. GENERAL Nature of Operations Pride International, Inc. (Pride, we, our, or us) is a leading international provider of offshore contract drilling services. We provide these services to oil and natural gas exploration and production companies through the operation and management of 23 offshore rigs. We also have four ultra-deepwater drillships under construction. Basis of Presentation On August 24, 2009, we completed the spin-off of our 20-rig mat-supported jackup business. In the third quarter of 2008, we entered into agreements to sell our Eastern Hemisphere land rig operations and completed the sale of all but one land rig used in those operations in the fourth quarter of 2008. The sale of the remaining land rig closed in the second quarter of 2009.The results of operations, for all periods presented, of the assets disposed of in these transactions have been reclassified to income from discontinued operations. Except where noted, the discussions in the following notes relate to our continuing operations only (see Note 2). Our unaudited consolidated financial statements included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. We believe that the presentation and disclosures herein are adequate to make the information not misleading. In the opinion of management, the unaudited consolidated financial information included herein reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2008. The results of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for a full year or any other interim period. In the notes to the unaudited consolidated financial statements, all dollar and share amounts, other than per share amounts, in tabulations are in millions of dollars and shares, respectively, unless otherwise noted. Subsequent Events In preparing these financial statements, we have evaluated subsequent events through November 2, 2009, which is the date the financial statements are being issued. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Propert |
DISCONTINUED OPERATIONS AND OTH
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 2. Discontinued Operations and Other Divestitures | NOTE 2. DISCONTINUED OPERATIONS AND OTHER DIVESTITURES Discontinued Operations We report discontinued operations in accordance with the guidance of ASC Topic 205, Presentation of Financial Statements, and Topic 360, Property, Plant and Equipment. We reclassify, from continuing operations to discontinued operations, for all periods presented, the results of operations for any asset group either held for sale or disposed of. We define an asset group as an operating group. Such reclassifications had no effect on our net income or stockholders equity. Spin-off of Mat-Supported Jackup Business On August 24, 2009, we completed the spin-off of Seahawk Drilling, Inc. (Seahawk), which holds the assets and liabilities that were associated with our mat-supported jackup rig business.In the spin-off, our stockholders received 100% (approximately 11.6 million shares) of the outstanding common stock of Seahawk by way of a pro rata stock dividend.Each of our stockholders of record at the close of business on August 14, 2009 received one share of Seahawk common stock for every 15 shares of our common stock held by such stockholder and cash in lieu of any fractional shares of Seahawk common stock to which such stockholder otherwise would have been entitled. The following table presents selected information regarding the results of operations of our former mat-supported jackup business: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Revenues $ 30.8 $ 143.9 $ 189.4 $ 476.4 Operating costs, excluding depreciation and amortization 30.7 77.4 161.6 247.7 Depreciation and amortization 8.4 14.2 37.5 45.3 General and administrative, excluding depreciation and amortization 17.7 1.1 28.4 2.2 Impairment expense 33.4 - 33.4 - Gain on sales of assets, net - (3.0 ) (5.0 ) (21.3 ) Earnings (loss) from operations $ (59.4 ) $ 54.2 $ (66.5 ) $ 202.5 Other income (expense), net (0.1 ) (0.5 ) 1.2 0.2 Income (loss) before taxes (59.5 ) 53.7 (65.3 ) 202.7 Income taxes 17.5 (18.3 ) 18.0 (71.0 ) Income (loss) from discontinued operations $ (42.0 ) $ 35.4 $ (47.3 ) $ 131.7 In connection with the spin-off, we made a cash contribution to Seahawk of approximately $47.3 million to achieve a targeted working capital for Seahawk as of May31, 2009 of $85million. We and Seahawk also agreed to indemnify each other for certain liabilities that may arise or be incurred in the future attributable to our respective businesses. As of the date of the spin-off, per ASC Topic 360, we conducted a fair value assessment of the long-lived assets of Seahawk to determine whether an impairment loss should be recognized. We used multiple valuation methods and weighted the results of those methods for the final fair value determination. For the first valuation technique, we applied the income approach using a discounted cash flows metho |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 3. Property and Equipment | NOTE 3. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, December 31, 2009 2008 (As Adjusted) Rigs and rig equipment $ 3,999.9 $ 4,873.6 Construction-in-progress - newbuild drillships 1,484.3 965.5 Construction-in-progress - other 248.4 165.7 Other 82.9 63.0 Property and equipment, cost 5,815.5 6,067.8 Accumulated depreciation and amortization (1,163.1 ) (1,474.9 ) Property and equipment, net $ 4,652.4 $ 4,592.9 |
DEBT
DEBT | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 4. Debt | NOTE 4. DEBT Debt consisted of the following: September 30, December 31, 2009 2008 Senior unsecured revolving credit facility $ - $ - 8 1/2% Senior Notes due 2019, net of unamortized discount of $1.8 million 498.2 - 7 3/8%Senior Notes due 2014, net of unamortized discount of $1.5million and $1.7 million, respectively 498.5 498.3 MARAD notes, net of unamortized fair value discount of $2.0 million and $2.4 million, respectively 203.0 224.9 Total debt 1,199.7 723.2 Less: current portion of long-term debt 30.3 30.3 Long-term debt $ 1,169.4 $ 692.9 In July 2009, borrowing availability under our unsecured revolving credit facility was increased from $300.0 million to $320.0 million. Amounts drawn under the senior unsecured revolving credit facility bear interest at variable rates based on LIBOR plus a margin or the alternative base rate defined in the agreement. The interest rate margin applicable to LIBOR advances varies based on our credit rating. As of September 30, 2009, there were no borrowings or letters of credit outstanding under the facility and availability was $320.0 million. On June 2, 2009, we completed an offering of $500.0 million aggregate principal amount of 8 1/2%Senior Notes due 2019. The 2019 notes bear interest at 8.5% per annum, payable semiannually. We expect to use the proceeds from this offering, net of discount and issuance costs, of $492.4 million for general corporate purposes. The 2019 notes contain provisions that limit our ability and the ability of our subsidiaries, with certain exceptions, to engage in sale and leaseback transactions, create liens and consolidate, merge or transfer all or substantially all of our assets. If we are required to make an offer to repurchase our 7 3/8% Senior Notes due 2014 as a result of specified change in control events that result in a ratings decline, we will be required to make a concurrent offer to purchase the 2019 notes. The 2019 notes are subject to redemption, in whole or in part, at our option at any time at a redemption price equal to the principal amount of the notes redeemed plus a make-whole premium.We will also pay accrued but unpaid interest to the redemption date. ASC Subtopic 470-20, Debt with Conversion and Other Options (formerly FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)), applies to any convertible debt instrument that may be wholly or partially settled in cash and requires the separation of the debt and equity components of cash-settleable convertibles at the date of issuance.The accounting under ASC Subtopic 470-20, which we adopted January 1, 2009, required retrospective application for all periods presented and therefore must be applied to our $300 million 3.25% convertible senior notes due 2033, which were issued in May 2003 and retired in May 2008.We have calculated a theoretical non-cash interest expense based on a similar debt instrument carrying a fixed |
DERIVATIVES AND FINANCIAL INSTR
DERIVATIVES AND FINANCIAL INSTRUMENTS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 5. Derivatives and Financial Instruments | NOTE 5. DERIVATIVES AND FINANCIAL INSTRUMENTS Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, foreign currency forward contracts and debt. The estimated fair value of our debt at September 30, 2009 and December 31, 2008 was $1,285.3 million and $702.5 million, respectively, which differs from the carrying amounts of $1,199.7 million and $723.2 million, respectively, included in our consolidated balance sheets. The fair value of our debt has been estimated based on quarter- and year-end quoted market prices. The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis: September 30, 2009 December 31, 2008 Estimated Fair Value Measurements Carrying Amount Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs(Level 2) Significant Unobservable Inputs(Level 3) CarryingAmount Estimated Fair Value Derivative Financial Instruments: Foreign currency forward contracts $ 0.2 $ - $ 0.2 $ - $ 0.2 $ 0.2 The foreign currency forward contracts have been valued using a combined income and market-based valuation methodology based on forward exchange curves and credit. These curves are obtained from independent pricing services reflecting broker market quotes. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying value included in the accompanying consolidated balance sheets approximate fair value. Cash Flow Hedging We have a foreign currency hedging program to moderate the change in value of forecasted payroll transactions and related costs denominated in Euros. We are hedging a portion of these payroll and related costs using forward contracts. When the U.S. dollar strengthens against the Euro, the decline in the value of the forward contracts is offset by lower future payroll costs. Conversely, when the U.S. dollar weakens, the increase in value of forward contracts offsets higher future payroll costs. The maximum amount of time that we are hedging our exposure to Euro-denominated forecasted payroll costs is six months. The aggregate notional amount of these forward contracts, expressed in U.S. dollars, was $6.1 million at September 30, 2009. All of our foreign currency forward contracts were accounted for as cash flow hedges under ASC Topic 815, Derivatives and Hedging (formerly SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities). The fair market value of these derivative instruments is included in prepaid expenses and other current assets or accrued expenses and other current liabilities, with the cumulative unrealized gain or loss included in accumulated other comprehensive income in our consolidated balance sheet. The estimated fair market value of our outstanding foreign currency forward contracts resulted in an asset of approximately $0.2 million at September 30, 2009. Hedge effectiveness |
INCOME TAXES
INCOME TAXES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 6. Income Taxes | NOTE 6. INCOME TAXES In accordance with generally accepted accounting principles, we estimate the full-year tax rate from continuing operations and apply this rate to our year-to-date income from continuing operations. In addition, we separately calculate the tax impact of unusual items, if any.For the three months ended September 30, 2009 and September 30, 2008, our consolidated effective tax rate for continuing operations was 18.5% and 24.9%, respectively. For the nine months ended September 30, 2009 and September 30, 2008 our consolidated effective tax rate for continuing operations was 16.6% and 20.1%, respectively. The lower tax rate for the 2009 period was principally the result of increased profitability in lower tax jurisdictions and tax benefits related to the finalization of certain tax returns. |
EARNINGS PER SHARE
EARNINGS PER SHARE | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 7. Earnings Per Share | NOTE 7. EARNINGS PER SHARE ASC Topic 260, Earnings per Share, clarifies that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid,are participating securities and should be included in the computation of earnings per share under the two class method described in ASC Subtopic 260-10-45. The two class method allocates undistributed earnings between common shares and participating securities.We have determined that our grants of unvested restricted stock awards are considered participating securities. We have prepared our current period earnings per share calculations and retrospectively revised our prior period calculationsto exclude net income allocated to these unvested restricted stock awards. As a result, basic and diluted income from continuing operations per share decreased by $0.01 for the three months ended September 30, 2008 and $0.03 for the nine months ended September 30, 2008. The following table is a reconciliation of the numerator and the denominator of our basic and diluted earnings per share from continuing operations: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Income from continuing operations $ 79.9 $ 144.2 $ 363.5 $ 336.3 Income from continuing operations allocated to non-vested share awards (1.2 ) (1.5 ) (5.6 ) (3.6 ) Income from continuing operations - basic 78.7 142.7 357.9 332.7 Interest expense on convertible notes - - - - Income tax effect - - - - Income from continuing operations - diluted $ 78.7 $ 142.7 $ 357.9 $ 332.7 Weighted average shares of common stock outstanding - basic 173.5 172.7 173.4 169.9 Convertible notes - - - 5.5 Stock options 0.5 0.6 0.3 0.6 Weighted average shares of common stock outstanding - diluted 174.0 173.3 173.7 176.0 Income from continuing operations per share: Basic $ 0.45 $ 0.82 $ 2.06 $ 1.96 Diluted $ 0.45 $ 0.82 $ 2.06 $ 1.89 The calculation of weighted average shares of common stock outstanding diluted for the three months ended September 30, 2009 and 2008, excludes 1.4 million and 0.5 million shares of common stock, respectively, issuable pursuant to outstanding stock options because their effect was antidilutive. The calculation of weighted average shares of common stock outstanding diluted for the nine months ended September 30, 2009 and 2008 excludes 2.6 million and 0.8 million shares of common stock, respectively, issuable pursuant to outstanding stock options because their effect was antidilutive. |
EMPLOYEE STOCK PLANS
EMPLOYEE STOCK PLANS | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 8. Employee Stock Plans | NOTE 8. EMPLOYEE STOCK PLANS Our stock-based compensation plans provide for the granting or awarding of stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards and cash awards to directors, officers and other key employees. Under the terms of our stock-based compensation plans, the number of shares available for awards under the plans was adjusted pursuant to the terms of the plans to prevent dilution as a result of the spin-off of Seahawk. This adjustment resulted in additional shares being made available for awards under the plans in the following amounts: 366,404 shares under our 2007 Long-Term Incentive Plan and 5,991 shares under our 2004 Directors' Stock Incentive Plan. An adjustment was also made under our Employee Stock Purchase Plan to add an additional 8,798 shares available for issuance under the plan. During the nine months ended September 30, 2009, we granted approximately 1,189,000 stock options at a weighted average exercise price of $17.58. The weighted average fair value per share of these stock-based awards estimated on the date of grant using the Black-Scholes option pricing model was $10.38. The implied volatility used to calculate the Black-Scholes fair value of stock-based awards granted during the nine months ended September 30, 2009 increased to 68.7% from 35.1% in 2008, due to the significant changes in the market price of our common stock in 2008. With the exception of volatility, there were no other significant changes in the weighted average assumptions used to calculate the Black-Scholes fair value of stock-based awards granted during the nine months ended September 30, 2009 from those used in 2008 as reported in Note 11 of our Annual Report on Form 10-K for the year ended December 31, 2008. During the nine months ended September 30, 2009, we also granted approximately 1,797,000 restricted stock unit awards with a weighted average grant-date fair value per share of $16.65. The restricted stock unit awards granted during 2009, but prior to the Seahawk spin-off, were modified at the time of the spin-off to increase the number of units to reflect the stock dividend associated with the underlying shares. We granted 107,847 additional units, with a weighted average grant-date fair value per share of $26.54 on the date of the spin-off. Restricted stock unit awards that were granted prior to 2009 and were unvested at the time of the spin-off were not modified, but the holders received a cash dividend in lieu of additional units. As a result of Pride employees transferring to Seahawk, 189,592 restricted stock unit awards were forfeited. Awards of restricted stock that were unvested at the time of the spin-off were not modified, but the holders of those restricted stock awards participated in the spin-off on the same basis as the holders of our common stock and received one fully vested share of Seahawk common stock for every 15 shares of restricted stock held by the holder. In connection with the spin-off of Seahawk, we modified the outstanding stock options to preserve the intrinsic value of each option to the holder. The spin-off modifications resulted i |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 9. Commitments and Contingencies | NOTE 9. COMMITMENTS AND CONTINGENCIES FCPA Investigation During the course of an internal audit and investigation relating to certain of our Latin American operations, our management and internal audit department received allegations of improper payments to foreign government officials. In February 2006, the Audit Committee of our Board of Directors assumed direct responsibility over the investigation and retained independent outside counsel to investigate the allegations, as well as corresponding accounting entries and internal control issues, and to advise the Audit Committee. The investigation, which is continuing, has found evidence suggesting that payments, which may violate the U.S. Foreign Corrupt Practices Act, were made to government officials in Venezuela and Mexico aggregating less than $1 million. The evidence to date regarding these payments suggests that payments were made beginning in early 2003 through 2005 (a) to vendors with the intent that they would be transferred to government officials for the purpose of extending drilling contracts for two jackup rigs and one semisubmersible rig operating offshore Venezuela; and (b) to one or more government officials, or to vendors with the intent that they would be transferred to government officials, for the purpose of collecting payment for work completed in connection with offshore drilling contracts in Venezuela. In addition, the evidence suggests that other payments were made beginning in 2002 through early 2006 (a) to one or more government officials in Mexico in connection with the clearing of a jackup rig and equipment through customs, the movement of personnel through immigration or the acceptance of a jackup rig under a drilling contract; and (b) with respect to the potentially improper entertainment of government officials in Mexico. The Audit Committee, through independent outside counsel, has undertaken a review of our compliance with the FCPA in certain of our other international operations.This review has found evidence suggesting that during the period from 2001 through 2006 payments were made directly or indirectly to government officials in Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola and the Republic of the Congo in connection with clearing rigs or equipment through customs or resolving outstanding issues with customs, immigration, tax, licensing or merchant marine authorities in those countries. In addition, this review has found evidence suggesting that in 2003 payments were made to one or more third parties with the intent that they would be transferred to a government official in India for the purpose of resolving a customs dispute related to the importation of one of our jackup rigs. The evidence suggests that the aggregate amount of payments referred to in this paragraph is less than $2.5 million. In addition, the U.S. Department of Justice ("DOJ") has asked us to provide information with respect to (a) our relationships with a freight and customs agent and (b) our importation of rigs into Nigeria. The investigation of the matters described above and the Audit Committee's compliance review are ongoing. Accordingly, there can be no |
SEGMENT AND ENTERPRISE-RELATED
SEGMENT AND ENTERPRISE-RELATED INFORMATION | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 10. Segment and Enterprise-Related Information | NOTE 10. SEGMENT AND ENTERPRISE-RELATED INFORMATION Our reportable segments include Deepwater, which consists of our rigs capable of drilling in water depths greater than 4,500 feet; Midwater, which consists of our semisubmersible rigs capable of drilling in water depths of 4,500 feet or less; and Independent Leg Jackups, which consists of our rigs capable of operating in water depths up to 300 feet. We also manage the drilling operations for deepwater rigs, which are included in a non-reported operating segment along with corporate costs and other operations.The accounting policies for our segments are the same as those described in Note 1 of our Consolidated Financial Statements. Summarized financial information for our reportable segments are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Deepwater revenues: Revenues excluding reimbursables $ 189.9 $ 239.3 $ 634.4 $ 637.7 Reimbursable revenues 1.9 2.4 10.7 6.5 Total Deepwater revenues 191.8 241.7 645.1 644.2 Midwater revenues: Revenues excluding reimbursables 96.8 118.7 338.9 276.3 Reimbursable revenues 1.4 1.4 4.8 3.4 Total Midwater revenues 98.2 120.1 343.7 279.7 Independent Leg Jackup revenues: Revenues excluding reimbursables 72.6 74.3 220.7 192.4 Reimbursable revenues 0.2 0.2 0.6 0.3 Total Independent Leg Jackup revenues 72.8 74.5 221.3 192.7 Other 21.7 26.7 65.5 94.9 Corporate 1.6 0.3 1.8 0.9 Total revenues $ 386.1 $ 463.3 $ 1,277.4 $ 1,212.4 Earnings (loss) from continuing operations: Deepwater $ 71.8 $ 125.6 $ 300.9 $ 319.6 Midwater 25.7 47.3 121.1 92.7 Independent Leg Jackups 32.6 38.3 102.3 90.7 Other 1.6 1.2 3.9 7.1 Corporate (31.6 ) (27.4 ) (91.4 ) (98.9 ) Total $ 100.1 $ 185.0 $ 436.8 $ 411.2 Capital expenditures: Deepwater $ 195.5 $ 199.9 $ 620.3 $ 549.9 Midwater 10.5 25.5 25.6 129.2 Independent Leg Jackups 2.5 8.9 9.7 26.6 Other 10.1 0.3 12.1 2.3 Corporate 5.3 8.7 18.3 26.5 Discontinued operations - 2.9 12.6 18.3 Total $ 223.9 $ 246.2 $ 698.6 $ 752.8 Depreciation and amortization: Deepwater $ 19.0 $ 18.1 $ 56.8 $ 53.9 Midwater 11.3 11.1 34.0 31.0 Independent Leg Jackups 7.3 6.9 |
OTHER SUPPLEMENTAL INFORMATION
OTHER SUPPLEMENTAL INFORMATION | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Notes To Financial Statements [Abstract] | |
Note 11. Other Supplemental Information | NOTE 11. OTHER SUPPLEMENTAL INFORMATION Supplemental cash flows and non-cash transactions were as follows: Nine Months Ended September 30, 2009 2008 Decrease (increase) in: Trade receivables $ 45.9 $ (180.1 ) Prepaid expenses and other current assets 7.8 (2.6 ) Other assets (19.5 ) (4.3 ) Increase (decrease) in: Accounts payable (30.9 ) (28.1 ) Accrued expenses 50.7 9.6 Other liabilities 5.3 27.2 Net effect of changes in operating accounts $ 59.3 $ (178.3 ) Cash paid during the year for: Interest $ 44.7 $ 53.0 Income taxes 112.0 114.4 Change in capital expenditures in accounts payable 33.2 14.2 |
Document Information
Document Information | |
9 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-09-30 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | |||
9 Months Ended
Sep. 30, 2009 | Oct. 27, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | PRIDE INTERNATIONAL INC | ||
Entity Central Index Key | 0000833081 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $8,100,000,000 | ||
Entity Common Stock, Shares Outstanding | 174,515,635 |