Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DO | |
Entity Registrant Name | DIAMOND OFFSHORE DRILLING INC | |
Entity Central Index Key | 949,039 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 137,169,663 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 81,329 | $ 119,028 |
Marketable securities | 46 | 11,518 |
Accounts receivable, net of allowance for bad debts | 273,982 | 405,370 |
Prepaid expenses and other current assets | 114,166 | 119,479 |
Assets held for sale | 7,600 | 14,200 |
Total current assets | 477,123 | 669,595 |
Drilling and other property and equipment, net of accumulated depreciation | 5,819,309 | 6,378,814 |
Other assets | 112,743 | 101,485 |
Total assets | 6,409,175 | 7,149,894 |
Current liabilities: | ||
Accounts payable | 36,480 | 70,272 |
Accrued liabilities | 224,390 | 253,769 |
Taxes payable | 36,911 | 15,093 |
Short-term borrowings | 182,100 | 286,589 |
Total current liabilities | 479,881 | 625,723 |
Long-term debt | 1,980,602 | 1,979,778 |
Deferred tax liability | 164,389 | 276,529 |
Other liabilities | 151,375 | 155,094 |
Total liabilities | 2,776,247 | 3,037,124 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding) | ||
Common stock (par value $0.01, 500,000,000 shares authorized; 143,997,757 shares issued and 137,169,663 shares outstanding at September 30, 2016; 143,978,877 shares issued and 137,158,706 shares outstanding at December 31, 2015) | 1,440 | 1,440 |
Additional paid-in capital | 2,003,388 | 1,999,634 |
Retained earnings | 1,830,683 | 2,319,136 |
Accumulated other comprehensive gain (loss) | 3 | (5,035) |
Treasury stock, at cost (6,828,094 and 6,820,171 shares of common stock at September 30, 2016 and December 31, 2015, respectively) | (202,586) | (202,405) |
Total stockholders' equity | 3,632,928 | 4,112,770 |
Total liabilities and stockholders' equity | $ 6,409,175 | $ 7,149,894 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 143,997,757 | 143,978,877 |
Common stock, shares outstanding | 137,169,663 | 137,158,706 |
Treasury stock, shares | 6,828,094 | 6,820,171 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Contract drilling | $ 339,636 | $ 599,036 | $ 1,140,568 | $ 1,816,055 |
Revenues related to reimbursable expenses | 9,542 | 10,706 | 67,900 | 47,775 |
Total revenues | 349,178 | 609,742 | 1,208,468 | 1,863,830 |
Operating expenses: | ||||
Contract drilling, excluding depreciation | 186,654 | 277,944 | 597,831 | 971,471 |
Reimbursable expenses | 7,965 | 10,476 | 51,283 | 46,904 |
Depreciation | 86,473 | 118,086 | 295,729 | 378,714 |
General and administrative | 15,237 | 16,888 | 48,774 | 50,888 |
Impairment of assets | 2,546 | 678,145 | 361,074 | |
Restructuring and separation costs | 1,574 | 8,735 | ||
(Gain) loss on disposition of assets | (1,222) | 794 | (2,265) | 19 |
Total operating expenses | 295,107 | 428,308 | 1,669,497 | 1,817,805 |
Operating income (loss) | 54,071 | 181,434 | (461,029) | 46,025 |
Other income (expense): | ||||
Interest income | 150 | 629 | 592 | 1,796 |
Interest expense, net of amounts capitalized | (19,032) | (21,350) | (68,704) | (70,800) |
Foreign currency transaction (loss) gain | (712) | (1,163) | (7,833) | 954 |
Other, net | 269 | 217 | (11,199) | 702 |
Income (loss) before income tax (expense) benefit | 34,746 | 159,767 | (548,173) | (21,323) |
Income tax (expense) benefit | (20,819) | (23,345) | 59,588 | (7,578) |
Net income (loss) | $ 13,927 | $ 136,422 | $ (488,585) | $ (28,901) |
Earnings (loss) per share, Basic and Diluted | $ 0.10 | $ 0.99 | $ (3.56) | $ (0.21) |
Weighted-average shares outstanding: | ||||
Shares of common stock | 137,170 | 137,159 | 137,167 | 137,156 |
Dilutive potential shares of common stock | 84 | 44 | ||
Total weighted-average shares outstanding | 137,254 | 137,203 | 137,167 | 137,156 |
Cash dividends declared per share of common stock | $ 0.125 | $ 0.375 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,927 | $ 136,422 | $ (488,585) | $ (28,901) |
Derivative financial instruments: | ||||
Unrealized holding loss | (40) | (1,574) | ||
Reclassification adjustment for loss (gain) included in net income (loss) | 268 | (3) | 5,085 | |
Investments in marketable securities: | ||||
Unrealized holding loss | (1) | (2,440) | (6,559) | (2,733) |
Reclassification adjustment for loss included in net income (loss) | 11,600 | |||
Total other comprehensive (loss) gain | (1) | (2,212) | 5,038 | 778 |
Comprehensive income (loss) | $ 13,926 | $ 134,210 | $ (483,547) | $ (28,123) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net loss | $ (488,585) | $ (28,901) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 295,729 | 378,714 |
Loss on impairment of assets | 678,145 | 361,074 |
(Gain) loss on disposition of assets | (2,265) | 19 |
Loss on sale of marketable securities, net | 12,146 | |
Loss on foreign currency forward exchange contracts | 8,364 | |
Deferred tax provision | (114,405) | (114,662) |
Stock-based compensation expense | 3,754 | 3,503 |
Deferred income, net | (23,381) | (24,735) |
Deferred expenses, net | (1,099) | (42,261) |
Other assets, noncurrent | (677) | 774 |
Other liabilities, noncurrent | 3,021 | (3,844) |
Payments for settlement of foreign currency forward exchange contracts designated as accounting hedges | (8,364) | |
Other | 1,997 | 998 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 131,388 | (33,360) |
Prepaid expenses and other current assets | 3,950 | 10,979 |
Accounts payable and accrued liabilities | (32,762) | (112,206) |
Taxes payable | 25,038 | 70,585 |
Net cash provided by operating activities | 491,994 | 466,677 |
Investing activities: | ||
Capital expenditures (including rig construction) | (598,236) | (758,342) |
Proceeds from disposition of assets, net of disposal costs | 169,038 | 8,442 |
Proceeds from sale and maturities of marketable securities | 4,603 | 34 |
Net cash used in investing activities | (424,595) | (749,866) |
Financing activities: | ||
Net (repayment of) proceeds from short-term borrowings | (104,489) | 492,996 |
Repayment of long-term debt | (250,000) | |
Payment of dividends and anti-dilution payments | (408) | (52,287) |
Other | (201) | (12) |
Net cash (used in) provided by financing activities | (105,098) | 190,697 |
Net change in cash and cash equivalents | (37,699) | (92,492) |
Cash and cash equivalents, beginning of period | 119,028 | 233,623 |
Cash and cash equivalents, end of period | $ 81,329 | $ 141,131 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information The unaudited consolidated financial statements of Diamond Offshore Drilling, Inc. and subsidiaries, which we refer to as “Diamond Offshore,” “we,” “us” or “our,” should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 1-13926). As of October 26, 2016, Loews Corporation owned approximately 53% of the outstanding shares of our common stock. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S., or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by GAAP for complete financial statements. The consolidated financial information has not been audited but, in the opinion of management, includes all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of Diamond Offshore’s consolidated balance sheets, statements of operations, statements of comprehensive income and statements of cash flows at the dates and for the periods indicated. Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. Assets Held For Sale At December 31, 2015, we reported the $14.2 million carrying value of five marketed-for-sale jack-up rigs as “Assets held for sale” in our Consolidated Balance Sheets. One of these rigs was sold for $8.0 million in February 2016. At September 30, 2016, we reported “Assets held for sale” of $7.6 million in our Consolidated Balance Sheets, consisting of $6.2 million for our four marketed-for-sale jack-up rigs and $1.4 million for two of our semisubmersible rigs, which we expect to sell as scrap in the fourth quarter of 2016. Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income currently while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. During the nine-month period ended September 30, 2016 and the year ended December 31, 2015, we capitalized $154.8 million and $262.4 million, respectively, in replacements and betterments of our drilling fleet. See Notes 2 and 8. Capitalized Interest We capitalize interest cost for qualifying construction and upgrade projects. See Note 8. A reconciliation of our total interest cost to “Interest expense, net of amounts capitalized” as reported in our Consolidated Statements of Operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Total interest cost, including amortization of debt issuance costs $ 27,016 $ 23,830 $ 83,888 $ 84,254 Capitalized interest (7,984 ) (2,480 ) (15,184 ) (13,454 ) Total interest expense as reported $ 19,032 $ 21,350 $ 68,704 $ 70,800 Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, contracted backlog of less than one year for a rig, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm stacked or cold stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm stacked or cold stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance, inspection or other reactivation costs associated with a rig returning to work; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability- weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes, and then assesses the rig’s future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported. Our methodology generally involves the use of significant unobservable inputs, representative of a Level 3 fair value measurement, which may include assumptions related to future dayrate revenue, costs and rig utilization, quotes from rig brokers, the long-term future performance of our rigs and future market conditions. Management’s assumptions involve uncertainties about future demand for our services, dayrates, expenses and other future events, and management’s expectations may not be indicative of future outcomes. Significant unanticipated changes to these assumptions could materially alter our analysis in testing an asset for potential impairment. For example, changes in market conditions that exist at the measurement date or that are projected by management could affect our key assumptions. Other events or circumstances that could affect our assumptions may include, but are not limited to, a further sustained decline in oil and gas prices, cancelations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations. Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different. See Note 2. Debt Issuance Costs Historically, we have presented deferred costs associated with the issuance of long-term debt as “Other Assets” in our unaudited consolidated balance sheets and have amortized such costs over the respective terms of the related debt. In April 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs Other Assets Long-term (In thousands) Amount as previously presented, before adoption of ASU 2015-03 $ 116,480 $ 1,994,773 Deferred debt issuance costs (14,995 ) (14,995 ) Amount as restated, after adoption of ASU 2015-03 $ 101,485 $ 1,979,778 Recent Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ASU 2016-15 In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ASU 2016-02, ASU 2014-09. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Asset Impairments
Asset Impairments | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairments | 2. Asset Impairments 2016 Impairments In the second quarter of 2016, we evaluated 15 of our drilling rigs with indications that their carrying amounts may not be recoverable. Based on our updated assumptions and analyses, we determined that the carrying values of eight of these rigs, consisting of three ultra-deepwater, three deepwater and two mid-water semisubmersible rigs, were impaired (we collectively refer to these eight rigs as the “Second Quarter 2016 Impaired Rigs”). We estimated the fair value of the Second Quarter 2016 Impaired Rigs using an income approach. The fair value of each rig was estimated based on a calculation of the rig’s discounted future net cash flows over its remaining economic life, which utilized significant unobservable inputs, including, but not limited to, assumptions related to estimated dayrate revenue, rig utilization, estimated reactivation and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. Our fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. During the second quarter of 2016, we recorded an impairment loss of $670.0 million related to our Second Quarter 2016 Impaired Rigs In the third quarter of 2016, we evaluated nine of our drilling rigs with indications that their carrying amounts may not be recoverable. Based on our assumptions and analyses, we determined that the carrying values of these rigs were not impaired. If market fundamentals in the offshore oil and gas industry deteriorate further, we may be required to recognize additional impairment losses in future periods. 2015 Impairments We estimated the fair value of 16 of the 2015 Impaired Rigs utilizing a market approach, which required us to estimate the value that would be received for each rig in the principal or most advantageous market for that rig in an orderly transaction between market participants. Such estimates were based on various inputs, including historical contracted sales prices for similar rigs in our fleet, nonbinding quotes from rig brokers and/or indicative bids, where applicable. We estimated the fair value of the one remaining 2015 Impaired Rig using an income approach, as discussed above. Our fair value estimates are representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. During the first, third and fourth quarters of 2015, we recognized impairment losses of $358.5 million, $2.6 million and $499.4 million, respectively, for an aggregate impairment loss of $860.4 million for the year ended December 31, 2015. Of the 2015 Impaired Rigs, six mid-water semisubmersible rigs, our older drillship and one marketed-for-sale jack-up rig have been sold. At September 30, 2016, eight rigs impaired during 2015 or 2016 were cold stacked and an additional four jack-up rigs were being marketed for sale. Two previously-impaired semisubmersible rigs have been retired and are expected to be sold as scrap in the near term. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | 3. Supplemental Financial Information Consolidated Balance Sheets Information Accounts receivable, net of allowance for bad debts, consist of the following: September 30, December 31, (In thousands) Trade receivables $ 255,935 $ 390,429 Value added tax receivables 21,812 14,475 Amounts held in escrow 995 4,966 Related party receivables 142 167 Other 822 1,057 279,706 411,094 Allowance for bad debts (5,724 ) (5,724 ) Total $ 273,982 $ 405,370 Prepaid expenses and other current assets consist of the following: September 30, December 31, (In thousands) Rig spare parts and supplies $ 26,690 $ 42,804 Deferred mobilization costs 54,734 52,965 Prepaid insurance 4,697 4,483 Prepaid taxes 19,794 14,969 Prepaid BOP Lease 2,987 — Other 5,264 4,258 Total $ 114,166 $ 119,479 During the nine-month period ended September 30, 2016, we recognized an $8.1 million impairment loss related to our rig spare parts and supplies. Accrued liabilities consist of the following: September 30, December 31, (In thousands) Rig operating expenses $ 40,157 $ 47,426 Payroll and benefits 44,331 59,787 Deferred revenue 14,922 31,542 Accrued capital project/upgrade costs 65,286 84,146 Interest payable 44,130 18,365 Personal injury and other claims 6,243 8,320 Other 9,321 4,183 Total $ 224,390 $ 253,769 Consolidated Statements of Cash Flows Information Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows: Nine Months Ended September 30, 2016 2015 (In thousands) Accrued but unpaid capital expenditures at period end $ 65,286 $ 42,325 Common stock withheld for payroll tax obligations (1) 181 236 Cash interest payments (2) 53,433 57,625 Cash income taxes paid, net of (refunds): U.S. federal — (3,344 ) Foreign 33,479 53,292 State 1 150 (1) Represents the cost of 7,923 shares and 7,810 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units in the nine months ended September 30, 2016 and 2015, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at September 30, 2016 and 2015. (2) Interest payments, net of amounts capitalized, were $43.6 million and $48.7 million for the nine-month periods ended September 30, 2016 and 2015, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings Per Share A reconciliation of the numerators and the denominators of our basic and diluted per-share computations follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share data) Net income (loss) – basic and diluted numerator $ 13,927 $ 136,422 $ (488,585 ) $ (28,901 ) Weighted average shares – basic (denominator): 137,170 137,159 137,167 137,156 Dilutive effect of stock-based awards 84 44 — — Weighted average shares including conversions – diluted (denominator) 137,254 137,203 137,167 137,156 Earnings (loss) earnings per share: Basic $ 0.10 $ 0.99 $ (3.56 ) $ (0.21 ) Diluted $ 0.10 $ 0.99 $ (3.56 ) $ (0.21 ) The following table sets forth the share effects of stock-based awards excluded from our computations of diluted earnings per share, or EPS, as the inclusion of such potentially dilutive shares would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Employee and director: Stock options 6 23 8 29 Stock appreciation rights 1,469 1,521 1,519 1,561 Restricted stock units 423 176 687 252 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 5. Marketable Securities We report our investments as current assets in our Consolidated Balance Sheets in “Marketable securities,” representing the investment of cash available for current operations. See Note 7. Our investments in marketable securities are classified as available for sale and are summarized as follows: September 30, 2016 Amortized Unrealized Gain (Loss) Market Value (In thousands) Mortgage-backed securities $ 45 $ 1 $ 46 December 31, 2015 Amortized Unrealized Gain (Loss) Market Value (In thousands) Corporate bonds $ 16,480 $ (5,042 ) $ 11,438 Mortgage-backed securities 77 3 80 Total $ 16,557 $ (5,039 ) $ 11,518 In June 2016, we sold our investment in corporate bonds for proceeds of $4.6 million and recognized a loss of $12.9 million, including $0.8 million in accrued interest that we do not expect to collect. Proceeds from maturities and sales of mortgage-backed securities and the related gains and losses during the three-month and nine-month periods ended September 30, 2016 and 2015 were not significant. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 6. Derivative Financial Instruments Foreign Currency Forward Exchange Contracts During the nine months ended September 30, 2015, we settled foreign currency forward exchange, or FOREX, contracts with aggregate notional values of approximately $91.6 million, of which the entire aggregate amount was designated as a cash flow accounting hedge. We did not settle any FOREX contracts during the nine months ended September 30, 2016 and had no FOREX contracts outstanding at September 30, 2016 or December 31, 2015. During the three-month and nine-month periods ended September 30, 2015, we recognized aggregate losses of $0.5 million and $8.4 million, respectively, related to our FOREX contracts designated as accounting hedges. We have presented these amounts within “Contract drilling, excluding depreciation” expense in our Consolidated Statements of Operations. The following table presents the amounts recognized in our Consolidated Balance Sheets and Consolidated Statements of Operations related to our derivative financial instruments designated as cash flow hedges for the three-month and nine-month periods ended September 30, 2015. In the table, AOCGL refers to accumulated other comprehensive gain (loss). Period Ended September 30, 2015 Three Months Nine Months (In thousands) FOREX contracts: Amount of loss recognized in AOCGL on derivative (effective portion) $ (61 ) $ (2,420 ) Location of loss reclassified from AOCGL into income (effective portion) Contract drilling Contract drilling Amount of loss reclassified from AOCGL into income (effective portion) $ (415 ) $ (7,829 ) Location of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Foreign currency Foreign currency Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ — $ (1 ) During the nine-month period ended September 30, 2015, we did not reclassify any amounts from AOCGL due to the probability of an underlying forecasted transaction not occurring. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 7. Financial Instruments and Fair Value Disclosures Financial instruments that potentially subject us to significant concentrations of credit or market risk consist primarily of periodic temporary investments of excess cash, trade accounts receivable and investments in debt securities, including residential mortgage-backed securities. We generally place our excess cash investments in U.S. government-backed short-term money market instruments through several financial institutions. At times, such investments may be in excess of the insurable limit. We periodically evaluate the relative credit standing of these financial institutions as part of our investment strategy. Concentrations of credit risk with respect to our trade accounts receivable are limited primarily due to the entities comprising our customer base. Since the market for our services is the offshore oil and gas industry, this customer base has consisted primarily of major and independent oil and gas companies and government-owned oil companies. Based on our current customer base and the geographic areas in which we operate, as well as the number of rigs currently working in a geographic area, we do not believe that we have any significant concentrations of credit risk at September 30, 2016. In general, before working for a customer with whom we have not had a prior business relationship and/or whose financial stability may be uncertain to us, we perform a credit review on that company. Based on that analysis, we may require that the customer present a letter of credit, prepay or provide other credit enhancements. We record a provision for bad debts on a case-by-case basis when facts and circumstances indicate that a customer receivable may not be collectible and, historically, losses on our trade receivables have been infrequent occurrences. Fair Values Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical instruments in active markets. Level 1 assets include short-term investments such as money market funds, U.S. Treasury Bills and Treasury notes. Our Level 1 assets at September 30, 2016 consisted of cash held in money market funds of $55.4 million and time deposits of $20.4 million. Our Level 1 assets at December 31, 2015 consisted of cash held in money market funds of $85.2 million and time deposits of $20.4 million. Level 2 Quoted market prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 assets and liabilities include residential mortgage-backed securities, corporate bonds purchased in a private placement offering and over-the-counter FOREX contracts. Our residential mortgage-backed securities and corporate bonds, prior to being sold in the second quarter of 2016, were valued using a model-derived valuation technique based on the quoted closing market prices received from a financial institution. The inputs used in our valuation are obtained from a Bloomberg curve analysis which uses par coupon swap rates to calculate implied forward rates so that projected floating rate cash flows can be calculated. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment. Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 assets and liabilities generally include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation or for which there is a lack of transparency as to the inputs used. Our Level 3 assets at September 30, 2016 consisted of nonrecurring measurements of certain of our drilling rigs and associated spare parts and supplies for which we recorded impairment losses during the second quarter of 2016 and the year ended December 31, 2015. See Notes 1, 2 and 3. Market conditions could cause an instrument to be reclassified among Levels 1, 2 and 3. Our policy regarding fair value measurements of financial instruments transferred into and out of levels is to reflect the transfers as having occurred at the beginning of the reporting period. There were no transfers between fair value levels during the three-month and nine-month periods ended September 30, 2016 and 2015. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis in accordance with GAAP. In addition, certain assets and liabilities may be recorded at fair value on a nonrecurring basis. Generally, we record assets at fair value on a nonrecurring basis as a result of impairment charges. We recorded impairment charges related to certain of our drilling rigs and related rig spare parts and supplies, which were measured at fair value on a nonrecurring basis during the three-month periods ended March 31, 2015, September 30, 2015, December 31, 2015 and June 30, 2016 of $358.5 million, $2.6 million, $499.4 million and $678.1 million, respectively. Assets and liabilities measured at fair value are summarized below: September 30, 2016 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Total for Nine Months Ended (1) (In thousands) Recurring fair value measurements: Assets: Short-term investments $ 75,850 $ — $ — $ 75,850 Mortgage-backed securities — 46 — 46 Total assets $ 75,850 $ 46 $ — $ 75,896 Nonrecurring fair value measurements: Assets: Impaired assets (2)(3) $ — $ — $ 85,091 $ 85,091 $ 678,145 (1) Represents impairment losses of $8.1 million and $670.0 million recognized during the nine-month period ended September 30, 2016 related to our rig spare parts and supplies and the Second Quarter 2016 Impaired Rigs, respectively. See Notes 2 and 3. (2) Represents the total book value as of September 30, 2016 for 16 drilling rigs ($60.9 million), which were written down to their estimated recoverable amounts in 2015 and 2016, and for rig spare parts and supplies ($24.2 million), which were written down to their estimated recoverable amounts in the second quarter of 2016. Of the total fair value, $24.2 million, $7.6 million and $53.3 million were reported as “Prepaid expenses and other current assets,” “Assets held for sale” and “Drilling and other property and equipment, net of accumulated depreciation,” respectively, in our Consolidated Balance Sheets at September 30, 2016. See Notes 1, 2 and 3. (3) Includes depreciation expense of $15.8 million recognized in nine-month period ended September 30, 2016 for rigs which have previously been written down to their estimated fair values using an income approach and are still under contract. Also excludes the fair value of one marketed-for-sale jack-up rig and two mid-water semisubmersible rigs sold during the first nine months of 2016. December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Total Losses for Year (1) (In thousands) Recurring fair value measurements: Assets: Short-term investments $ 105,659 $ — $ — $ 105,659 Corporate bonds — 11,438 — 11,438 Mortgage-backed securities — 80 — 80 Total assets $ 105,659 $ 11,518 $ — $ 117,177 Nonrecurring fair value measurements: Assets: Impaired assets (2)(3) $ — $ — $ 189,600 $ 189,600 $ 860,441 (1) Represents the aggregate impairment loss recognized for the year ended December 31, 2015 related to our rigs impaired during 2015. (2) Represents the book value of our rigs impaired during 2015, which were written down to their estimated recoverable amounts during 2015, of which $14.2 million and $175.4 million were reported as “Assets held for sale” and “Drilling and other property and equipment, net of accumulated depreciation,” respectively, in our Consolidated Balance Sheets at December 31, 2015. (3) Excludes five rigs with an aggregate fair value of $2.4 million, which were impaired in 2015, but were subsequently sold for scrap prior to December 31, 2015. We believe that the carrying amounts of our other financial assets and liabilities (excluding long-term debt), which are not measured at fair value in our Consolidated Balance Sheets, approximate fair value based on the following assumptions: • Cash and cash equivalents • Accounts receivable and accounts payable • Short-term borrowings We consider our senior notes to be Level 2 liabilities under the GAAP fair value hierarchy and, accordingly, the fair value of our senior notes was derived using a third-party pricing service at September 30, 2016 and December 31, 2015. We perform control procedures over information we obtain from pricing services and brokers to test whether prices received represent a reasonable estimate of fair value. These procedures include the review of pricing service or broker pricing methodologies and comparing fair value estimates to actual trade activity executed in the market for these instruments occurring generally within a 10-day period of the report date. Fair values and related carrying values of our senior notes are shown below. September 30, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value (In millions) 5.875% Senior Notes due 2019 $ 518.8 $ 499.8 $ 506.8 $ 499.7 3.45% Senior Notes due 2023 218.5 249.2 208.0 249.2 5.70% Senior Notes due 2039 393.2 497.1 360.0 497.0 4.875% Senior Notes due 2043 520.5 748.9 455.3 748.9 We have estimated the fair value amounts by using appropriate valuation methodologies and information available to management. Considerable judgment is required in developing these estimates, and accordingly, no assurance can be given that the estimated values are indicative of the amounts that would be realized in a free market exchange. |
Drilling and Other Property and
Drilling and Other Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Drilling and Other Property and Equipment | 8. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows: September 30, December 31, (In thousands) Drilling rigs and equipment $ 8,217,405 $ 9,345,484 Construction work-in-progress 748,426 269,605 Land and buildings 64,415 64,775 Office equipment and other 72,312 71,537 Cost 9,102,558 9,751,401 Less: accumulated depreciation (3,283,249 ) (3,372,587 ) Drilling and other property and equipment, net $ 5,819,309 $ 6,378,814 During the nine-month period ended September 30, 2016, we recognized an aggregate impairment loss of $670.0 million related to the Second Quarter 2016 Impaired Rigs. See Notes 1 and 2. See Note 13 for a discussion of three sale and leaseback transactions that were executed during the nine-month period ended September 30, 2016. Construction work-in-progress, including capitalized interest, at September 30, 2016 and December 31, 2015 was $748.4 million and $269.6 million, respectively, attributable to the Ocean GreatWhite |
Credit Agreement, Commercial Pa
Credit Agreement, Commercial Paper and Credit Ratings | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreement, Commercial Paper and Credit Ratings | 9. Credit Agreement, Commercial Paper and Credit Ratings In February 2016, Moody’s Investors Service, or Moody’s, downgraded our senior unsecured credit rating to Ba2 from Baa2, with a stable outlook, and also downgraded our short-term credit rating to sub-prime. In July 2016, S&P Global Ratings (formerly Standard & Poor’s Ratings Services) downgraded our senior unsecured credit rating to BBB from BBB+ with a negative outlook. As a result of the Moody’s downgrade in the first quarter of 2016, we canceled our commercial paper program due to our inability to access the commercial paper market in the foreseeable future. We no longer obtain a short-term credit rating from either rating agency. Based on our current credit ratings, the applicable interest rate for alternate base rate loans under our revolving credit agreement is 0.25% over the greater of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the daily one-month Eurodollar Rate plus 1.00%. The applicable interest rate for Eurodollar loans under our revolving credit agreement is currently 1.25% over British Bankers’ Association LIBOR. The applicable commitment fee is 0.20%, and the participation fee for performance letters of credit is 0.625%. In January 2016, we repaid the $286.6 million in commercial paper notes outstanding at December 31, 2015 with proceeds from borrowings under our revolving credit agreement. At September 30, 2016, we had $182.1 million in borrowings outstanding under our revolving credit agreement. These borrowings bore interest at a weighted average interest rate of 1.8%. As of October 27, 2016, we had $221.5 million in borrowings outstanding and an additional $1.28 billion available under our revolving credit agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Various claims have been filed against us in the ordinary course of business, including claims by offshore workers alleging personal injuries. With respect to each claim or exposure, we have made an assessment, in accordance with GAAP, of the probability that the resolution of the matter would ultimately result in a loss. When we determine that an unfavorable resolution of a matter is probable and such amount of loss can be determined, we record a liability for the amount of the estimated loss at the time that both of these criteria are met. Our management believes that we have recorded adequate accruals for any liabilities that may reasonably be expected to result from these claims. Asbestos Litigation Other Litigation. NPI Arrangement. Personal Injury Claims The Jones Act is a federal law that permits seamen to seek compensation for certain injuries during the course of their employment on a vessel and governs the liability of vessel operators and marine employers for the work-related injury or death of an employee. We engage outside consultants to assist us in estimating our aggregate liability for personal injury claims based on our historical losses and utilizing various actuarial models. We allocate a portion of the aggregate liability to “Accrued liabilities” based on an estimate of claims expected to be paid within the next twelve months with the residual recorded as “Other liabilities.” At September 30, 2016 our estimated liability for personal injury claims was $33.3 million, of which $6.1 million and $27.2 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2015 our estimated liability for personal injury claims was $40.4 million, of which $8.2 million and $32.2 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. The eventual settlement or adjudication of these claims could differ materially from our estimated amounts due to uncertainties such as: • the severity of personal injuries claimed; • significant changes in the volume of personal injury claims; • the unpredictability of legal jurisdictions where the claims will ultimately be litigated; • inconsistent court decisions; and • the risks and lack of predictability inherent in personal injury litigation. Purchase Obligations Ocean GreatWhite At September 30, 2016, we had no other purchase obligations for major rig upgrades or any other significant obligations, except for those related to our direct rig operations, that arise during the normal course of business. See Note 13. Letters of Credit and Other |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Gain (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Gain (Loss) | 11. Accumulated Other Comprehensive Gain (Loss) The components of our AOCGL and related changes thereto are as follows : Unrealized (Loss) Gain on Derivative Marketable Total AOCGL (In thousands) Balance at January 1, 2016 $ 6 $ (5,041 ) $ (5,035 ) Change in other comprehensive loss before reclassifications, after tax of $0 and $1 — (6,559 ) (6,559 ) Reclassification adjustments for items included in Net Loss, after tax of $3 and $0 (3 ) 11,600 11,597 Balance at September 30, 2016 $ 3 $ — $ 3 The following table presents the line items in our Consolidated Statements of Operations affected by reclassification adjustments out of AOCGL. Major Category of AOCGL Three Months Ended September 30, Nine Months Ended September 30, Consolidated Statements of 2016 2015 2016 2015 (In thousands) Derivative Financial Instruments: Unrealized loss on FOREX contracts $ — $ 415 $ — $ 7,829 Contract drilling, excluding depreciation Unrealized (gain) on treasury lock agreements (2 ) (2 ) (6 ) (6 ) Interest expense 2 (145 ) 3 (2,738 ) Income tax expense Total, net of tax $ — $ 268 $ (3 ) $ 5,085 Marketable Securities: Unrealized loss on marketable securities $ — $ — $ 11,600 $ — Other, net — — — — Income tax expense Total, net of tax $ — $ — $ 11,600 $ — |
Restructuring and Separation Co
Restructuring and Separation Costs | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Separation Costs | 12. Restructuring and Separation Costs In early 2015, in response to the continuing decline in the offshore drilling market, we reviewed our cost and organization structure and, as a result, our management approved and initiated a reduction in workforce at our onshore bases and corporate facilities, also referred to as the Corporate Reduction Plan. We recognized $1.6 million and $8.7 million in restructuring and employee separation-related costs for the three-month and nine-month periods ended September 30, 2015, respectively. Substantially all costs associated with the Corporate Reduction Plan had been paid as of September 30, 2015. |
Sale and Leaseback Transaction
Sale and Leaseback Transaction | 9 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Sale and Leaseback Transaction | 13. Sale and Leaseback Transactions In February 2016, we entered into a ten-year agreement with a subsidiary of GE Oil & Gas, or GE, to provide services with respect to certain blowout preventer and related well control equipment, or Well Control Equipment, on our four newly-built drillships. Such services include management of maintenance, certification and reliability with respect to such equipment. In connection with the contractual services agreement with GE, we agreed to sell the Well Control Equipment to another GE affiliate and subsequently lease back such equipment pursuant to separate ten-year operating leases. During the nine months ended September 30, 2016, we completed three sale and leaseback transactions with respect to the Well Control Equipment on the Ocean BlackHawk, Ocean BlackHornet Ocean BlackLion Ocean BlackHawk, Ocean BlackHornet Ocean BlackLion Ocean BlackRhino |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Our income tax expense is a function of the mix between our domestic and international pre-tax earnings or losses, as well as the mix of international tax jurisdictions in which we operate. Certain of our international rigs are owned and operated, directly or indirectly, by one of our wholly owned foreign subsidiaries. It is our intention to indefinitely reinvest future earnings of this subsidiary to finance foreign activities. Accordingly, we have not made a provision for U.S. income taxes on such earnings except to the extent that such earnings were immediately subject to U.S. income taxes. At December 31, 2015 we had recorded a deferred tax asset of $33.7 million for the benefit of foreign tax credits in the U.S. that we expected to utilize prior to their expiration in 2024 and 2025. As of September 30, 2016, we no longer expect to be able to realize this future tax benefit and, accordingly, we established a valuation allowance of $33.7 million in the second quarter of 2016 for the prior year deferred tax asset. We have also recorded a $27.1 million valuation allowance for the deferred tax asset for the benefit of foreign tax credits arising in 2016 that we do not expect to be able to utilize prior to their expiration in 2026. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 15. Segments and Geographic Area Analysis Although we provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics due to the nature of the revenue earning process as it relates to the offshore drilling industry over the operating lives of our drilling rigs. Revenues from contract drilling services by equipment type are listed below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Floaters: Ultra-Deepwater $ 217,275 $ 376,195 $ 757,338 $ 943,261 Deepwater 66,011 136,668 192,319 456,542 Mid-Water 56,350 69,500 160,716 342,783 Total Floaters 339,636 582,363 1,110,373 1,742,586 Jack-ups — 16,673 30,195 73,469 Total contract drilling revenues 339,636 599,036 1,140,568 1,816,055 Revenues related to reimbursable expenses 9,542 10,706 67,900 47,775 Total revenues $ 349,178 $ 609,742 $ 1,208,468 $ 1,863,830 Geographic Areas Our drilling rigs are highly mobile and may be moved to other markets throughout the world in response to market conditions or customer needs. At September 30, 2016, our actively-marketed drilling rigs were en route to or located offshore in four countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) United States $ 121,895 $ 140,898 $ 414,087 $ 330,765 International: South America 105,614 222,717 333,803 654,432 Europe 63,117 132,345 253,287 420,147 Australia/Asia 56,688 86,608 169,323 333,628 Mexico 1,864 27,174 37,968 124,858 Total revenues $ 349,178 $ 609,742 $ 1,208,468 $ 1,863,830 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On October 26, 2016, we executed a settlement agreement with a former customer in connection with a contractual dispute regarding one of our rigs that had previously worked in the North Sea. Pursuant to the agreement, we expect to receive compensation of approximately $36.0 million in the fourth quarter of 2016 in full settlement of the dispute. |
General Information (Policies)
General Information (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S., or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by GAAP for complete financial statements. The consolidated financial information has not been audited but, in the opinion of management, includes all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of Diamond Offshore’s consolidated balance sheets, statements of operations, statements of comprehensive income and statements of cash flows at the dates and for the periods indicated. Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. |
Assets Held For Sale | Assets Held For Sale At December 31, 2015, we reported the $14.2 million carrying value of five marketed-for-sale jack-up rigs as “Assets held for sale” in our Consolidated Balance Sheets. One of these rigs was sold for $8.0 million in February 2016. At September 30, 2016, we reported “Assets held for sale” of $7.6 million in our Consolidated Balance Sheets, consisting of $6.2 million for our four marketed-for-sale jack-up rigs and $1.4 million for two of our semisubmersible rigs, which we expect to sell as scrap in the fourth quarter of 2016. |
Drilling and Other Property and Equipment | Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income currently while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. During the nine-month period ended September 30, 2016 and the year ended December 31, 2015, we capitalized $154.8 million and $262.4 million, respectively, in replacements and betterments of our drilling fleet. See Notes 2 and 8. |
Capitalized Interest | Capitalized Interest We capitalize interest cost for qualifying construction and upgrade projects. See Note 8. A reconciliation of our total interest cost to “Interest expense, net of amounts capitalized” as reported in our Consolidated Statements of Operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Total interest cost, including amortization of debt issuance costs $ 27,016 $ 23,830 $ 83,888 $ 84,254 Capitalized interest (7,984 ) (2,480 ) (15,184 ) (13,454 ) Total interest expense as reported $ 19,032 $ 21,350 $ 68,704 $ 70,800 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, contracted backlog of less than one year for a rig, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm stacked or cold stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm stacked or cold stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance, inspection or other reactivation costs associated with a rig returning to work; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability- weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes, and then assesses the rig’s future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported. Our methodology generally involves the use of significant unobservable inputs, representative of a Level 3 fair value measurement, which may include assumptions related to future dayrate revenue, costs and rig utilization, quotes from rig brokers, the long-term future performance of our rigs and future market conditions. Management’s assumptions involve uncertainties about future demand for our services, dayrates, expenses and other future events, and management’s expectations may not be indicative of future outcomes. Significant unanticipated changes to these assumptions could materially alter our analysis in testing an asset for potential impairment. For example, changes in market conditions that exist at the measurement date or that are projected by management could affect our key assumptions. Other events or circumstances that could affect our assumptions may include, but are not limited to, a further sustained decline in oil and gas prices, cancelations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations. Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different. See Note 2. |
Debt Issuance Costs | Debt Issuance Costs Historically, we have presented deferred costs associated with the issuance of long-term debt as “Other Assets” in our unaudited consolidated balance sheets and have amortized such costs over the respective terms of the related debt. In April 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs Other Assets Long-term (In thousands) Amount as previously presented, before adoption of ASU 2015-03 $ 116,480 $ 1,994,773 Deferred debt issuance costs (14,995 ) (14,995 ) Amount as restated, after adoption of ASU 2015-03 $ 101,485 $ 1,979,778 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ASU 2016-15 In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ASU 2016-02, ASU 2014-09. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
General Information (Tables)
General Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Reconciliation of Total Interest Cost to Interest Expense | A reconciliation of our total interest cost to “Interest expense, net of amounts capitalized” as reported in our Consolidated Statements of Operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Total interest cost, including amortization of debt issuance costs $ 27,016 $ 23,830 $ 83,888 $ 84,254 Capitalized interest (7,984 ) (2,480 ) (15,184 ) (13,454 ) Total interest expense as reported $ 19,032 $ 21,350 $ 68,704 $ 70,800 |
Retrospective Effect of Adoption that Impacted on Presentation of Deferred Debt Issuance Costs | The retrospective effect of our adoption of ASU 2015-03, which affected only the presentation of deferred debt issuance costs in our Consolidated Balance Sheets at December 31, 2015, is as follows: Other Assets Long-term (In thousands) Amount as previously presented, before adoption of ASU 2015-03 $ 116,480 $ 1,994,773 Deferred debt issuance costs (14,995 ) (14,995 ) Amount as restated, after adoption of ASU 2015-03 $ 101,485 $ 1,979,778 |
Supplemental Financial Inform25
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for bad debts, consist of the following: September 30, December 31, (In thousands) Trade receivables $ 255,935 $ 390,429 Value added tax receivables 21,812 14,475 Amounts held in escrow 995 4,966 Related party receivables 142 167 Other 822 1,057 279,706 411,094 Allowance for bad debts (5,724 ) (5,724 ) Total $ 273,982 $ 405,370 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: September 30, December 31, (In thousands) Rig spare parts and supplies $ 26,690 $ 42,804 Deferred mobilization costs 54,734 52,965 Prepaid insurance 4,697 4,483 Prepaid taxes 19,794 14,969 Prepaid BOP Lease 2,987 — Other 5,264 4,258 Total $ 114,166 $ 119,479 |
Accrued Liabilities | Accrued liabilities consist of the following: September 30, December 31, (In thousands) Rig operating expenses $ 40,157 $ 47,426 Payroll and benefits 44,331 59,787 Deferred revenue 14,922 31,542 Accrued capital project/upgrade costs 65,286 84,146 Interest payable 44,130 18,365 Personal injury and other claims 6,243 8,320 Other 9,321 4,183 Total $ 224,390 $ 253,769 |
Noncash Investing and Financing Activities | Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows: Nine Months Ended September 30, 2016 2015 (In thousands) Accrued but unpaid capital expenditures at period end $ 65,286 $ 42,325 Common stock withheld for payroll tax obligations (1) 181 236 Cash interest payments (2) 53,433 57,625 Cash income taxes paid, net of (refunds): U.S. federal — (3,344 ) Foreign 33,479 53,292 State 1 150 (1) Represents the cost of 7,923 shares and 7,810 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units in the nine months ended September 30, 2016 and 2015, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at September 30, 2016 and 2015. (2) Interest payments, net of amounts capitalized, were $43.6 million and $48.7 million for the nine-month periods ended September 30, 2016 and 2015, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Per-Share Computations | A reconciliation of the numerators and the denominators of our basic and diluted per-share computations follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share data) Net income (loss) – basic and diluted numerator $ 13,927 $ 136,422 $ (488,585 ) $ (28,901 ) Weighted average shares – basic (denominator): 137,170 137,159 137,167 137,156 Dilutive effect of stock-based awards 84 44 — — Weighted average shares including conversions – diluted (denominator) 137,254 137,203 137,167 137,156 Earnings (loss) earnings per share: Basic $ 0.10 $ 0.99 $ (3.56 ) $ (0.21 ) Diluted $ 0.10 $ 0.99 $ (3.56 ) $ (0.21 ) |
Securities Excluded from Computation of Diluted Earning Per Share | The following table sets forth the share effects of stock-based awards excluded from our computations of diluted earnings per share, or EPS, as the inclusion of such potentially dilutive shares would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Employee and director: Stock options 6 23 8 29 Stock appreciation rights 1,469 1,521 1,519 1,561 Restricted stock units 423 176 687 252 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities as Available for Sale | Our investments in marketable securities are classified as available for sale and are summarized as follows: September 30, 2016 Amortized Unrealized Gain (Loss) Market Value (In thousands) Mortgage-backed securities $ 45 $ 1 $ 46 December 31, 2015 Amortized Unrealized Gain (Loss) Market Value (In thousands) Corporate bonds $ 16,480 $ (5,042 ) $ 11,438 Mortgage-backed securities 77 3 80 Total $ 16,557 $ (5,039 ) $ 11,518 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amounts Recognized in Consolidated Balance Sheets and Consolidated Statements of Operations Related to Derivative Financial Instruments Designated as Cash Flow Hedges | The following table presents the amounts recognized in our Consolidated Balance Sheets and Consolidated Statements of Operations related to our derivative financial instruments designated as cash flow hedges for the three-month and nine-month periods ended September 30, 2015. In the table, AOCGL refers to accumulated other comprehensive gain (loss). Period Ended September 30, 2015 Three Months Nine Months (In thousands) FOREX contracts: Amount of loss recognized in AOCGL on derivative (effective portion) $ (61 ) $ (2,420 ) Location of loss reclassified from AOCGL into income (effective portion) Contract drilling Contract drilling Amount of loss reclassified from AOCGL into income (effective portion) $ (415 ) $ (7,829 ) Location of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Foreign currency Foreign currency Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ — $ (1 ) |
Financial Instruments and Fai29
Financial Instruments and Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value are summarized below: September 30, 2016 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Total for Nine Months Ended (1) (In thousands) Recurring fair value measurements: Assets: Short-term investments $ 75,850 $ — $ — $ 75,850 Mortgage-backed securities — 46 — 46 Total assets $ 75,850 $ 46 $ — $ 75,896 Nonrecurring fair value measurements: Assets: Impaired assets (2)(3) $ — $ — $ 85,091 $ 85,091 $ 678,145 (1) Represents impairment losses of $8.1 million and $670.0 million recognized during the nine-month period ended September 30, 2016 related to our rig spare parts and supplies and the Second Quarter 2016 Impaired Rigs, respectively. See Notes 2 and 3. (2) Represents the total book value as of September 30, 2016 for 16 drilling rigs ($60.9 million), which were written down to their estimated recoverable amounts in 2015 and 2016, and for rig spare parts and supplies ($24.2 million), which were written down to their estimated recoverable amounts in the second quarter of 2016. Of the total fair value, $24.2 million, $7.6 million and $53.3 million were reported as “Prepaid expenses and other current assets,” “Assets held for sale” and “Drilling and other property and equipment, net of accumulated depreciation,” respectively, in our Consolidated Balance Sheets at September 30, 2016. See Notes 1, 2 and 3. (3) Includes depreciation expense of $15.8 million recognized in nine-month period ended September 30, 2016 for rigs which have previously been written down to their estimated fair values using an income approach and are still under contract. Also excludes the fair value of one marketed-for-sale jack-up rig and two mid-water semisubmersible rigs sold during the first nine months of 2016. December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Total Losses for Year (1) (In thousands) Recurring fair value measurements: Assets: Short-term investments $ 105,659 $ — $ — $ 105,659 Corporate bonds — 11,438 — 11,438 Mortgage-backed securities — 80 — 80 Total assets $ 105,659 $ 11,518 $ — $ 117,177 Nonrecurring fair value measurements: Assets: Impaired assets (2)(3) $ — $ — $ 189,600 $ 189,600 $ 860,441 (1) Represents the aggregate impairment loss recognized for the year ended December 31, 2015 related to our rigs impaired during 2015. (2) Represents the book value of our rigs impaired during 2015, which were written down to their estimated recoverable amounts during 2015, of which $14.2 million and $175.4 million were reported as “Assets held for sale” and “Drilling and other property and equipment, net of accumulated depreciation,” respectively, in our Consolidated Balance Sheets at December 31, 2015. (3) Excludes five rigs with an aggregate fair value of $2.4 million, which were impaired in 2015, but were subsequently sold for scrap prior to December 31, 2015. |
Fair Values and Related Carrying Values of Our Debt Instruments | September 30, 2016 December 31, 2015 Fair Value Carrying Value Fair Value Carrying Value (In millions) 5.875% Senior Notes due 2019 $ 518.8 $ 499.8 $ 506.8 $ 499.7 3.45% Senior Notes due 2023 218.5 249.2 208.0 249.2 5.70% Senior Notes due 2039 393.2 497.1 360.0 497.0 4.875% Senior Notes due 2043 520.5 748.9 455.3 748.9 |
Drilling and Other Property a30
Drilling and Other Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment | Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows: September 30, December 31, (In thousands) Drilling rigs and equipment $ 8,217,405 $ 9,345,484 Construction work-in-progress 748,426 269,605 Land and buildings 64,415 64,775 Office equipment and other 72,312 71,537 Cost 9,102,558 9,751,401 Less: accumulated depreciation (3,283,249 ) (3,372,587 ) Drilling and other property and equipment, net $ 5,819,309 $ 6,378,814 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Gain (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Gain (Loss) | The components of our AOCGL and related changes thereto are as follows : Unrealized (Loss) Gain on Derivative Marketable Total AOCGL (In thousands) Balance at January 1, 2016 $ 6 $ (5,041 ) $ (5,035 ) Change in other comprehensive loss before reclassifications, after tax of $0 and $1 — (6,559 ) (6,559 ) Reclassification adjustments for items included in Net Loss, after tax of $3 and $0 (3 ) 11,600 11,597 Balance at September 30, 2016 $ 3 $ — $ 3 |
Items in Consolidated Statements of Operations Affected by Reclassification Adjustments | The following table presents the line items in our Consolidated Statements of Operations affected by reclassification adjustments out of AOCGL. Major Category of AOCGL Three Months Ended September 30, Nine Months Ended September 30, Consolidated Statements of 2016 2015 2016 2015 (In thousands) Derivative Financial Instruments: Unrealized loss on FOREX contracts $ — $ 415 $ — $ 7,829 Contract drilling, excluding depreciation Unrealized (gain) on treasury lock agreements (2 ) (2 ) (6 ) (6 ) Interest expense 2 (145 ) 3 (2,738 ) Income tax expense Total, net of tax $ — $ 268 $ (3 ) $ 5,085 Marketable Securities: Unrealized loss on marketable securities $ — $ — $ 11,600 $ — Other, net — — — — Income tax expense Total, net of tax $ — $ — $ 11,600 $ — |
Segments and Geographic Area 32
Segments and Geographic Area Analysis (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenues from Contract Drilling Services by Equipment Type | Revenues from contract drilling services by equipment type are listed below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Floaters: Ultra-Deepwater $ 217,275 $ 376,195 $ 757,338 $ 943,261 Deepwater 66,011 136,668 192,319 456,542 Mid-Water 56,350 69,500 160,716 342,783 Total Floaters 339,636 582,363 1,110,373 1,742,586 Jack-ups — 16,673 30,195 73,469 Total contract drilling revenues 339,636 599,036 1,140,568 1,816,055 Revenues related to reimbursable expenses 9,542 10,706 67,900 47,775 Total revenues $ 349,178 $ 609,742 $ 1,208,468 $ 1,863,830 |
Revenues by Geographic Area Presented by Attributing Revenues to Individual Country | Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (In thousands) United States $ 121,895 $ 140,898 $ 414,087 $ 330,765 International: South America 105,614 222,717 333,803 654,432 Europe 63,117 132,345 253,287 420,147 Australia/Asia 56,688 86,608 169,323 333,628 Mexico 1,864 27,174 37,968 124,858 Total revenues $ 349,178 $ 609,742 $ 1,208,468 $ 1,863,830 |
General Information - Additiona
General Information - Additional Information (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 29, 2016USD ($)Rigs | Sep. 30, 2016USD ($)Rigs | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Rigs | Oct. 26, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Carrying value of rigs in disposal group | $ 7,600 | ||||
Proceeds from disposition of assets | 169,038 | $ 8,442 | |||
Amount capitalized for asset replacements and betterments | 154,800 | $ 262,400 | |||
Jack-ups Held for Sale [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Carrying value of rigs in disposal group | $ 6,200 | $ 14,200 | |||
Number of offshore rigs owned | Rigs | 4 | 5 | |||
Proceeds from disposition of assets | $ 8,000 | ||||
Number of offshore rigs sold | Rigs | 1 | ||||
Semisubmersible Drilling Rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Carrying value of rigs in disposal group | $ 1,400 | ||||
Number of offshore rigs owned | Rigs | 2 | ||||
Subsequent Event [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Outstanding common stock owned by Loews Corporation | 53.00% |
General Information - Reconcili
General Information - Reconciliation of Total Interest Cost to Interest Expense, Net of Amounts Capitalized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Costs Incurred [Abstract] | ||||
Total interest cost, including amortization of debt issuance costs | $ 27,016 | $ 23,830 | $ 83,888 | $ 84,254 |
Capitalized interest | (7,984) | (2,480) | (15,184) | (13,454) |
Total interest expense as reported | $ 19,032 | $ 21,350 | $ 68,704 | $ 70,800 |
General Information - Retrospec
General Information - Retrospective Effect of Adoption that Impacted on Presentation of Deferred Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 112,743 | $ 101,485 |
Long-term debt | $ 1,980,602 | 1,979,778 |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | 116,480 | |
Long-term debt | 1,994,773 | |
Restatement Adjustment [Member] | Deferred Debt Issuance Costs [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | (14,995) | |
Long-term debt | $ (14,995) |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($)Rigs | Dec. 31, 2015USD ($)Rigs | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($)Rigs | Sep. 30, 2016USD ($)Rigs | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Rigs | |
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs evaluated for impairment | 9 | |||||||
Impairment of assets | $ | $ 678,100 | $ 499,400 | $ 2,546 | $ 358,500 | $ 678,145 | $ 361,074 | ||
Number of rigs cold stacked | 8 | |||||||
2016 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Impaired long-lived assets held and used, method for determining fair value | We estimated the fair value of the Second Quarter 2016 Impaired Rigs using an income approach. The fair value of each rig was estimated based on a calculation of the rig’s discounted future net cash flows over its remaining economic life, which utilized significant unobservable inputs, including, but not limited to, assumptions related to estimated dayrate revenue, rig utilization, estimated reactivation and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. Our fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. | |||||||
Impairment of assets | $ | $ 670,000 | $ 670,000 | $ 670,000 | |||||
2016 Impaired Rigs [Member] | Second Interim Period Review [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs evaluated for impairment | 15 | 15 | ||||||
Number of rigs impaired | 8 | 8 | ||||||
2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs evaluated for impairment | 25 | 25 | ||||||
Number of rigs impaired | 17 | 17 | ||||||
Impaired long-lived assets held and used, method for determining fair value | We estimated the fair value of 16 of the 2015 Impaired Rigs utilizing a market approach, which required us to estimate the value that would be received for each rig in the principal or most advantageous market for that rig in an orderly transaction between market participants. Such estimates were based on various inputs, including historical contracted sales prices for similar rigs in our fleet, nonbinding quotes from rig brokers and/or indicative bids, where applicable. We estimated the fair value of the one remaining 2015 Impaired Rig using an income approach, as discussed above. Our fair value estimates are representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. | |||||||
Impairment of assets | $ | $ 499,400 | $ 2,600 | $ 358,500 | $ 860,400 | ||||
Ultra-deep Water Rigs [Member] | 2016 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 3 | 3 | ||||||
Ultra-deep Water Rigs [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 2 | 2 | ||||||
Deep Water Rigs [Member] | 2016 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 3 | 3 | ||||||
Deep Water Rigs [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 1 | 1 | ||||||
Mid-Water Drilling Rigs [Member] | 2016 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 2 | 2 | ||||||
Mid-Water Drilling Rigs [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 9 | 9 | ||||||
Number of rigs sold | 6 | |||||||
Semisubmersible Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs expected to be sold as scrap | 2 | |||||||
Jack-ups [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs marketed for sale | 4 | |||||||
Jack-ups [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Number of rigs impaired | 5 | 5 | ||||||
Number of rigs sold | 1 | |||||||
Rig with Fair Values Estimated Using Market Approach [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Total rigs estimated using market approach | 16 | 16 | ||||||
Rig with Fair Values Estimated Using Income Approach [Member] | 2015 Impaired Rigs [Member] | ||||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||||
Total rigs estimated using income approach | 1 | 1 |
Supplemental Financial Inform37
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade receivables | $ 255,935 | $ 390,429 |
Value added tax receivables | 21,812 | 14,475 |
Amounts held in escrow | 995 | 4,966 |
Related party receivables | 142 | 167 |
Other | 822 | 1,057 |
Receivables Gross Current, Total | 279,706 | 411,094 |
Allowance for bad debts | (5,724) | (5,724) |
Total | $ 273,982 | $ 405,370 |
Supplemental Financial Inform38
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Rig spare parts and supplies | $ 26,690 | $ 42,804 |
Deferred mobilization costs | 54,734 | 52,965 |
Prepaid insurance | 4,697 | 4,483 |
Prepaid taxes | 19,794 | 14,969 |
Prepaid BOP Lease | 2,987 | |
Other | 5,264 | 4,258 |
Total | $ 114,166 | $ 119,479 |
Supplemental Financial Inform39
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on impairment of assets | $ 678,100 | $ 499,400 | $ 2,546 | $ 358,500 | $ 678,145 | $ 361,074 |
Rig Spare Parts and Supplies [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on impairment of assets | $ 8,100 |
Supplemental Financial Inform40
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Rig operating expenses | $ 40,157 | $ 47,426 |
Payroll and benefits | 44,331 | 59,787 |
Deferred revenue | 14,922 | 31,542 |
Accrued capital project/upgrade costs | 65,286 | 84,146 |
Interest payable | 44,130 | 18,365 |
Personal injury and other claims | 6,243 | 8,320 |
Other | 9,321 | 4,183 |
Total | $ 224,390 | $ 253,769 |
Supplemental Financial Inform41
Supplemental Financial Information - Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Accrued but unpaid capital expenditures at period end | $ 65,286 | $ 42,325 |
Common stock withheld for payroll tax obligations | 181 | 236 |
Cash interest payments | 53,433 | 57,625 |
U.S Federal [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | (3,344) | |
Foreign [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | 33,479 | 53,292 |
State [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | $ 1 | $ 150 |
Supplemental Financial Inform42
Supplemental Financial Information - Noncash Investing and Financing Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest payments, net of amounts capitalized | $ 43.6 | $ 48.7 |
Restricted Stock [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Number of shares of common stock withheld | 7,923 | 7,810 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Per-Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) - basic and diluted numerator | $ 13,927 | $ 136,422 | $ (488,585) | $ (28,901) |
Weighted average shares - basic (denominator): | 137,170 | 137,159 | 137,167 | 137,156 |
Dilutive effect of stock-based awards | 84 | 44 | ||
Weighted average shares including conversions - diluted (denominator) | 137,254 | 137,203 | 137,167 | 137,156 |
Earnings (loss) earnings per share: | ||||
Basic | $ 0.10 | $ 0.99 | $ (3.56) | $ (0.21) |
Diluted | $ 0.10 | $ 0.99 | $ (3.56) | $ (0.21) |
Earnings Per Share - Securities
Earnings Per Share - Securities Excluded from Computation of Diluted Earning Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options [Member] | ||||
Employee and director: | ||||
Securities excluded from computation of diluted earning per share | 6 | 23 | 8 | 29 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee and director: | ||||
Securities excluded from computation of diluted earning per share | 423 | 176 | 687 | 252 |
Stock Appreciation Rights (SARs) [Member] | ||||
Employee and director: | ||||
Securities excluded from computation of diluted earning per share | 1,469 | 1,521 | 1,519 | 1,561 |
Marketable Securities - Investm
Marketable Securities - Investments in Marketable Securities as Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 16,557 | |
Unrealized Gain (Loss) | (5,039) | |
Market Value | $ 46 | 11,518 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,480 | |
Unrealized Gain (Loss) | (5,042) | |
Market Value | 11,438 | |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 45 | 77 |
Unrealized Gain (Loss) | 1 | 3 |
Market Value | $ 46 | $ 80 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds for investment | $ 4,600 | $ 4,603 | $ 34 |
Recognized a loss on investment | (12,900) | $ (12,146) | |
Accrued interest receivable | $ 800 |
Derivative Financial Instrume47
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount of foreign currency contracts settled | $ 0 | $ 91,600,000 | ||
Derivative contracts outstanding | $ 0 | $ 0 | ||
Amount of losses recognized | 8,364,000 | |||
Contract Drilling [Member] | FOREX Contracts Designated as Accounting Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of losses recognized | $ 500,000 | 8,400,000 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from AOCGL due to the probability of a forecasted transaction not occurring | $ 0 |
Derivative Financial Instrume48
Derivative Financial Instruments - Amounts Recognized in Consolidated Balance Sheets and Consolidated Statements of Operations Related to Derivative Financial Instruments Designated as Cash Flow Hedges (Detail) - Derivative Designated as Accounting Hedges [Member] - FOREX Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized in AOCGL on derivative (effective portion) | $ (61) | $ (2,420) |
Contract Drilling Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss reclassified from AOCGL into income (effective portion) | $ (415) | (7,829) |
Foreign Currency Transaction (Loss) Gain [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | $ (1) |
Financial Instruments and Fai49
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Transfers between fair value levels | $ 0 | $ 0 | $ 0 | $ 0 | |||
Impairment of assets | $ 678,100,000 | $ 499,400,000 | $ 2,546,000 | $ 358,500,000 | $ 678,145,000 | $ 361,074,000 | |
Measurement period for determining fair value of debt instruments | 10 days | ||||||
Level 1 [Member] | Cash Held in Money Market Funds [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of investments | 55,400,000 | 85,200,000 | $ 55,400,000 | ||||
Level 1 [Member] | Time Deposits [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of investments | $ 20,400,000 | $ 20,400,000 | $ 20,400,000 |
Financial Instruments and Fai50
Financial Instruments and Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Assets: | |||||||
Loss on assets | $ 678,100 | $ 499,400 | $ 2,546 | $ 358,500 | $ 678,145 | $ 361,074 | |
Carrying value of impaired assets | 175,400 | 53,300 | $ 175,400 | ||||
Fair Value Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Short-term investments | 105,659 | 75,850 | 105,659 | ||||
Mortgage-backed securities | 80 | 46 | 80 | ||||
Total assets | 117,177 | 75,896 | 117,177 | ||||
Corporate bonds | 11,438 | 11,438 | |||||
Fair Value Measurements, Recurring [Member] | Level 1 [Member] | |||||||
Assets: | |||||||
Short-term investments | 105,659 | 75,850 | 105,659 | ||||
Total assets | 105,659 | 75,850 | 105,659 | ||||
Fair Value Measurements, Recurring [Member] | Level 2 [Member] | |||||||
Assets: | |||||||
Mortgage-backed securities | 80 | 46 | 80 | ||||
Total assets | 11,518 | 46 | 11,518 | ||||
Corporate bonds | 11,438 | 11,438 | |||||
Nonrecurring Fair Value Measurements [Member] | |||||||
Assets: | |||||||
Loss on assets | 678,145 | 860,441 | |||||
Carrying value of impaired assets | 189,600 | 85,091 | 189,600 | ||||
Nonrecurring Fair Value Measurements [Member] | Level 3 [Member] | |||||||
Assets: | |||||||
Carrying value of impaired assets | $ 189,600 | $ 85,091 | $ 189,600 |
Financial Instruments and Fai51
Financial Instruments and Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($)Rigs | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016USD ($)Rigs | Sep. 30, 2016USD ($)Rigs | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Rigs | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loss on impairment of assets | $ 678,100 | $ 499,400 | $ 2,546 | $ 358,500 | $ 678,145 | $ 361,074 | ||
Book value of physical assets | 6,378,814 | 5,819,309 | $ 6,378,814 | |||||
Carrying value of impaired assets | 175,400 | 53,300 | 175,400 | |||||
Depreciation expense | 15,800 | |||||||
2016 Impaired Rigs [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loss on impairment of assets | $ 670,000 | $ 670,000 | $ 670,000 | |||||
Jack-ups [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of rigs sold for scrap | Rigs | 1 | |||||||
Mid-Water Drilling Rigs [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of rigs sold for scrap | Rigs | 2 | |||||||
Mid-Water Drilling Rigs [Member] | 2016 Impaired Rigs [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of rigs written down to their estimated recoverable amounts | Rigs | 2 | 2 | ||||||
Jack Ups Rigs Held For Sale [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Carrying value of impaired assets | 14,200 | $ 7,600 | 14,200 | |||||
Rig Spare Parts and Supplies [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loss on impairment of assets | 8,100 | |||||||
Carrying value of impaired assets | 24,200 | |||||||
Nonrecurring Fair Value Measurements [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loss on impairment of assets | 678,145 | 860,441 | ||||||
Carrying value of impaired assets | 189,600 | $ 85,091 | $ 189,600 | |||||
Number of rigs sold for scrap | Rigs | 5 | |||||||
Fair value of assets impaired and sold during the period | $ 2,400 | $ 2,400 | ||||||
Nonrecurring Fair Value Measurements [Member] | Drilling Rigs [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of rigs written down to their estimated recoverable amounts | Rigs | 16 | |||||||
Book value of physical assets | $ 60,900 | |||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Carrying value of impaired assets | $ 24,200 |
Financial Instruments and Fai52
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
5.875% Senior Notes due 2019 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 518.8 | $ 506.8 |
Carrying Value | 499.8 | 499.7 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 218.5 | 208 |
Carrying Value | 249.2 | 249.2 |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 393.2 | 360 |
Carrying Value | 497.1 | 497 |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 520.5 | 455.3 |
Carrying Value | $ 748.9 | $ 748.9 |
Financial Instruments and Fai53
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Parenthetical) (Detail) | Sep. 30, 2016 | Dec. 31, 2015 |
5.875% Senior Notes due 2019 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 5.875% | 5.875% |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Drilling and Other Property a54
Drilling and Other Property and Equipment - Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 9,102,558 | $ 9,751,401 |
Less: accumulated depreciation | (3,283,249) | (3,372,587) |
Drilling and other property and equipment, net | 5,819,309 | 6,378,814 |
Drilling Rigs and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 8,217,405 | 9,345,484 |
Construction Work-in-Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 748,426 | 269,605 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 64,415 | 64,775 |
Office Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 72,312 | $ 71,537 |
Drilling and Other Property a55
Drilling and Other Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||||||
Loss on impairment of assets | $ 678,100 | $ 499,400 | $ 2,546 | $ 358,500 | $ 678,145 | $ 361,074 | |
2016 Impaired Rigs [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Loss on impairment of assets | $ 670,000 | $ 670,000 | 670,000 | ||||
Ocean GreatWhite [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Rigs under construction | $ 269,600 | $ 748,400 |
Credit Agreement, Commercial 56
Credit Agreement, Commercial Paper and Credit Ratings - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Sep. 30, 2016 | Oct. 27, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Commitment fee | 0.20% | |||
Borrowings outstanding | $ 182,100 | $ 286,589 | ||
Eurodollar Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest margin | 1.25% | |||
ABR Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest margin | 0.25% | |||
Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis point increase | 0.50% | |||
Eurodollar [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis point increase | 1.00% | |||
Performance Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Participation fees for letters of credit | 0.625% | |||
Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of notes | $ 286,600 | |||
Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 182,100 | |||
Borrowings weighted average interest rate | 1.80% | |||
Revolving Credit Agreement [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 221,500 | |||
Additional amount available under Credit Agreement | $ 1,280,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Contingencies And Commitments [Line Items] | |||
Net profits interest percent | 27.00% | ||
Disgorgement claims, limit | $ 17,000,000 | ||
Deductible for marine liability coverage including personal injury claims, per first occurrence | 10,000,000 | ||
Range of deductible for liability coverage for personal injury claims, lower limit | 5,000,000 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | 100,000,000 | ||
Cost of construction per shipyard agreement | $ 402,500,000 | ||
Other purchase obligations | 0 | ||
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 57,200,000 | ||
Potentially Collateralized Contingent Liability Under Letters Of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 54,100,000 | ||
NPI Arrangement [Member] | |||
Contingencies And Commitments [Line Items] | |||
Payments received from customer after bankruptcy filing | 3,250,000 | ||
Payments received from customer before and after bankruptcy filing | 30,000,000 | ||
Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 33,300,000 | $ 40,400,000 | |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 6,100,000 | 8,200,000 | |
Personal Injury Claims [Member] | Other Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 27,200,000 | $ 32,200,000 | |
Windstorms in U.S. Gulf of Mexico [Member] | |||
Contingencies And Commitments [Line Items] | |||
Deductible for marine liability coverage including personal injury claims, per first occurrence | 25,000,000 | ||
Range of deductible for liability coverage for personal injury claims, lower limit | 25,000,000 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | $ 100,000,000 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Gain (Loss) - Components of Accumulated Other Comprehensive Gain (Loss) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ (5,035) |
Change in other comprehensive loss before reclassifications | (6,559) |
Reclassification adjustments for items included in Net Loss | 11,597 |
Ending balance | 3 |
Derivative Financial Instrument [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 6 |
Reclassification adjustments for items included in Net Loss | (3) |
Ending balance | 3 |
Marketable Securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (5,041) |
Change in other comprehensive loss before reclassifications | (6,559) |
Reclassification adjustments for items included in Net Loss | $ 11,600 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Gain (Loss) - Components of Accumulated Other Comprehensive Gain (Loss) (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Equity [Abstract] | |
Change in other comprehensive loss on derivatives, tax expense (benefit) | $ 0 |
Change in other comprehensive loss on marketable securities, tax (expense) benefit | 1 |
Reclassification adjustments for items included in Net Loss on derivatives, tax (expense) benefit | 3 |
Reclassification adjustments for items included in Net Loss on marketable securities, tax (expense) benefit | $ 0 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Gain (Loss) - Items in Consolidated Statements of Operations Affected by Reclassification Adjustments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | $ 269 | $ 217 | $ (11,199) | $ 702 |
Contract drilling, excluding depreciation | (186,654) | (277,944) | (597,831) | (971,471) |
Interest expense | (19,032) | (21,350) | (68,704) | (70,800) |
Income tax expense | 20,819 | 23,345 | (59,588) | 7,578 |
Net income (loss) | 13,927 | 136,422 | (488,585) | (28,901) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 2 | (145) | 3 | (2,738) |
Net income (loss) | 268 | (3) | 5,085 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | FOREX Contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Contract drilling, excluding depreciation | 415 | 7,829 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Treasury Lock Agreements [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (2) | $ (2) | (6) | $ (6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Marketable Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other, net | 11,600 | |||
Net income (loss) | $ 11,600 |
Restructuring and Separation 61
Restructuring and Separation Costs - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and employee separation related costs | $ 1,574 | $ 8,735 |
Sale and Leaseback Transaction
Sale and Leaseback Transaction - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended |
Feb. 29, 2016Drillship | Sep. 30, 2016USD ($)Transactions | |
Leases [Abstract] | ||
Maturity of lease agreement | 10 years | 10 years |
Number of new build drillships in lease agreement | Drillship | 4 | |
Number of sale and leaseback transactions completed | Transactions | 3 | |
Future minimum rental payments under leases | $ 491 | |
Proceeds from sale of equipment | $ 157.5 | |
Operating lease and contractual services agreements | Executed three ten-year operating lease and contractual services agreements with respect to the Well Control Equipment. | |
Future minimum rental payments under leases per annum | $ 49 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Prior Period Foreign Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 33.7 | ||
2016 Foreign Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 27.1 | ||
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets for foreign tax credits | $ 33.7 |
Segments and Geographic Area 64
Segments and Geographic Area Analysis - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016CountrySegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of countries with rigs | Country | 4 |
Segments and Geographic Area 65
Segments and Geographic Area Analysis - Revenues from Contract Drilling Services by Equipment Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Contract drilling | $ 339,636 | $ 599,036 | $ 1,140,568 | $ 1,816,055 |
Revenues related to reimbursable expenses | 9,542 | 10,706 | 67,900 | 47,775 |
Total revenues | 349,178 | 609,742 | 1,208,468 | 1,863,830 |
Ultra-Deepwater Rigs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Contract drilling | 217,275 | 376,195 | 757,338 | 943,261 |
Deepwater [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Contract drilling | 66,011 | 136,668 | 192,319 | 456,542 |
Mid-Water [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Contract drilling | 56,350 | 69,500 | 160,716 | 342,783 |
Total Floaters [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Contract drilling | $ 339,636 | 582,363 | 1,110,373 | 1,742,586 |
Jack-ups [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Contract drilling | $ 16,673 | $ 30,195 | $ 73,469 |
Segments and Geographic Area 66
Segments and Geographic Area Analysis - Revenues by Geographic Area Presented by Attributing Revenues to Individual Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 349,178 | $ 609,742 | $ 1,208,468 | $ 1,863,830 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 121,895 | 140,898 | 414,087 | 330,765 |
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 105,614 | 222,717 | 333,803 | 654,432 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 63,117 | 132,345 | 253,287 | 420,147 |
Australia/Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 56,688 | 86,608 | 169,323 | 333,628 |
Mexico [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 1,864 | $ 27,174 | $ 37,968 | $ 124,858 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - USD ($) $ in Millions | Oct. 26, 2016 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||
Expected contractual dispute settlement receivable | $ 36 | |
Settlement agreement date | Oct. 26, 2016 |