Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DO | |
Entity Registrant Name | DIAMOND OFFSHORE DRILLING, INC. | |
Entity Central Index Key | 0000949039 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 137,690,627 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 122,840 | $ 154,073 |
Marketable securities | 249,858 | 299,849 |
Accounts receivable, net of allowance for bad debts | 189,381 | 168,620 |
Prepaid expenses and other current assets | 170,232 | 163,396 |
Assets held for sale | 491 | |
Total current assets | 732,802 | 785,938 |
Drilling and other property and equipment, net of accumulated depreciation | 5,170,858 | 5,184,222 |
Other assets | 208,824 | 65,534 |
Total assets | 6,112,484 | 6,035,694 |
Current liabilities: | ||
Accounts payable | 60,284 | 43,933 |
Accrued liabilities | 197,877 | 172,228 |
Taxes payable | 15,096 | 20,685 |
Total current liabilities | 273,257 | 236,846 |
Long-term debt | 1,974,365 | 1,973,922 |
Deferred tax liability | 97,810 | 104,380 |
Other liabilities | 255,176 | 135,893 |
Total liabilities | 2,600,608 | 2,451,041 |
Commitments and contingencies (Note 8) | ||
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; 144,606,992 shares issued and 137,580,203 shares outstanding at March 31, 2019; 144,383,662 shares issued and 137,438,353 shares outstanding at December 31, 2018) | 1,446 | 1,444 |
Additional paid-in capital | 2,019,555 | 2,018,143 |
Retained earnings | 1,696,087 | 1,769,415 |
Accumulated other comprehensive gain | 2 | 21 |
Treasury stock, at cost (7,026,789 and 6,945,309 shares of common stock at March 31, 2019 and December 31, 2018, respectively) | (205,214) | (204,370) |
Total stockholders’ equity | 3,511,876 | 3,584,653 |
Total liabilities and stockholders’ equity | $ 6,112,484 | $ 6,035,694 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Paranthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 144,606,992 | 144,383,662 |
Common stock, shares outstanding | 137,580,203 | 137,438,353 |
Treasury stock, shares | 7,026,789 | 6,945,309 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 233,542 | $ 295,510 |
Operating expenses: | ||
Depreciation | 86,898 | 81,825 |
General and administrative | 17,312 | 18,513 |
Restructuring and separation costs | 3,011 | |
Loss (gain) on disposition of assets | 4,287 | (510) |
Total operating expenses | 282,669 | 294,998 |
Operating (loss) income | (49,127) | 512 |
Other income (expense): | ||
Interest income | 2,414 | 1,637 |
Interest expense, net of amounts capitalized | (29,925) | (28,318) |
Foreign currency transaction (loss) gain | (1,085) | 447 |
Other, net | 333 | 580 |
Loss before income tax benefit | (77,390) | (25,142) |
Income tax benefit | 4,062 | 44,463 |
Net (loss) income | $ (73,328) | $ 19,321 |
(Loss) Earnings per share, Basic and Diluted | $ (0.53) | $ 0.14 |
Weighted-average shares outstanding: | ||
Shares of common stock | 137,522,000 | 137,294,000 |
Dilutive potential shares of common stock | 201,000 | |
Total weighted-average shares outstanding | 137,522,000 | 137,495,000 |
Contract Drilling [Member] | ||
Revenues: | ||
Total revenues | $ 226,697 | $ 287,926 |
Operating expenses: | ||
Contract drilling, excluding depreciation | 167,429 | 184,689 |
Reimbursable Expenses [Member] | ||
Revenues: | ||
Total revenues | 6,845 | 7,584 |
Operating expenses: | ||
Contract drilling, excluding depreciation | $ 6,743 | $ 7,470 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (73,328) | $ 19,321 |
Derivative financial instruments: | ||
Reclassification adjustment for gain included in net (loss) income | (1) | (2) |
Investments in marketable securities: | ||
Unrealized holding gain | 14 | |
Reclassification adjustment for gain included in net (loss) income | (32) | |
Total other comprehensive loss | (19) | (2) |
Comprehensive (loss) income | $ (73,347) | $ 19,319 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Gains (Losses) [Member] | Treasury Stock [Member] |
Impact of change in accounting principle | $ (14,812) | $ (14,812) | ||||
Begining Balance at Dec. 31, 2017 | 3,774,261 | $ 1,441 | $ 2,011,397 | 1,964,497 | $ (5) | $ (203,069) |
Beginning Balance, shares at Dec. 31, 2017 | 144,085,292 | 6,857,510 | ||||
Adjusted balance at Dec. 31, 2017 | 3,759,449 | $ 1,441 | 2,011,397 | 1,949,685 | (5) | $ (203,069) |
Adjusted balance, shares at Dec. 31, 2017 | 144,085,292 | 6,857,510 | ||||
Net (loss) income | 19,321 | 19,321 | ||||
Stock-based compensation, net of tax | 864 | $ 1 | 1,596 | $ (733) | ||
Stock-based compensation, net of tax, shares | 164,271 | 49,082 | ||||
Net loss on derivative financial instruments | (2) | (2) | ||||
Ending Balance at Mar. 31, 2018 | 3,779,632 | $ 1,442 | 2,012,993 | 1,969,006 | (7) | $ (203,802) |
Ending Balance, shares at Mar. 31, 2018 | 144,249,563 | 6,906,592 | ||||
Begining Balance at Dec. 31, 2018 | 3,584,653 | $ 1,444 | 2,018,143 | 1,769,415 | 21 | $ (204,370) |
Beginning Balance, shares at Dec. 31, 2018 | 144,383,662 | 6,945,309 | ||||
Net (loss) income | (73,328) | (73,328) | ||||
Stock-based compensation, net of tax | 570 | $ 2 | 1,412 | $ (844) | ||
Stock-based compensation, net of tax, shares | 223,330 | 81,480 | ||||
Net loss on investments | (18) | (18) | ||||
Net loss on derivative financial instruments | (1) | (1) | ||||
Ending Balance at Mar. 31, 2019 | $ 3,511,876 | $ 1,446 | $ 2,019,555 | $ 1,696,087 | $ 2 | $ (205,214) |
Ending Balance, shares at Mar. 31, 2019 | 144,606,992 | 7,026,789 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net (loss) income | $ (73,328) | $ 19,321 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 86,898 | 81,825 |
Loss (gain) on disposition of assets | 4,287 | (510) |
Deferred tax provision | (7,769) | (49,089) |
Stock-based compensation expense | 1,414 | 1,597 |
Contract liabilities, net | 11,980 | (500) |
Contract assets, net | (1,922) | 611 |
Deferred contract costs, net | (6,244) | 10,827 |
Other assets, noncurrent | 98 | 228 |
Other liabilities, noncurrent | (570) | (1,811) |
Other | (1,517) | 3,182 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,761) | 56,962 |
Prepaid expenses and other current assets | 604 | 2,381 |
Accounts payable and accrued liabilities | 13,329 | (36,542) |
Taxes payable | (3,637) | (4,713) |
Net cash provided by operating activities | 2,862 | 83,769 |
Investing activities: | ||
Capital expenditures | (85,890) | (31,483) |
Proceeds from maturities of marketable securities | 1,000,000 | |
Purchase of marketable securities | (948,298) | |
Proceeds from disposition of assets, net of disposal costs | 95 | 1,427 |
Net cash used in investing activities | (34,093) | (30,056) |
Financing activities: | ||
Other | (2) | (66) |
Net cash used in financing activities | (2) | (66) |
Net change in cash and cash equivalents | (31,233) | 53,647 |
Cash and cash equivalents, beginning of period | 154,073 | 376,037 |
Cash and cash equivalents, end of period | $ 122,840 | $ 429,684 |
General Information
General Information | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information The unaudited condensed 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, 2018 (File No. 1-13926). As of April 25, 2019, Loews Corporation owned approximately 53% of the outstanding shares of our common stock. Interim Financial Information The accompanying unaudited condensed 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 annual financial statements. The condensed consolidated financial information has not been audited but, in the opinion of management, includes all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of Diamond Offshore’s condensed consolidated balance sheets, statements of operations, statements of comprehensive income or loss, statements of stockholders’ equity 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases We adopted ASU 2016-02 effective January 1, 2019 using an optional transition method requiring leases existing at, or entered into after, January 1, 2019 to be recognized and measured under the new accounting standard. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting for leases. In our adoption of ASU 2016-02, we also utilized a transition practical expedient package whereby we did not reassess (i) whether any of our expired or existing contracts contain a lease, (ii) the classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The adoption of this standard resulted in the recording of operating lease assets and offsetting operating lease liabilities of $146.8 million as of January 1, 2019, with no related impact on our unaudited Condensed Consolidated Statements of Stockholders’ Equity. See Note 9. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our drilling contracts include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities and/or modifications required for the contract. We account for these integrated services provided within our drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which we provide drilling services. Dayrate and other revenue for activities, which correspond to a distinct time increment within the contract term, are recognized in the period when the services are performed. Consideration for activities that are not distinct within the context of our contracts and do not correspond to a distinct time increment within the contract term is allocated across the single performance obligation and recognized ratably in proportion to the actual services performed over the initial term of the contract (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months). Such consideration may include mobilization, demobilization, contract preparation and capital modification revenue that is stipulated in our drilling contracts. Contract Balances The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): March 31, December 31, 2019 2018 Trade receivables $ 179,805 $ 160,463 Current contract assets (1) 8,755 6,832 Noncurrent contract assets (1) 2,107 2,107 Current contract liabilities (deferred revenue) (1) (6,840 ) (2,803 ) Noncurrent contract liabilities (deferred revenue) (1) (25,667 ) (17,723 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances Contract assets at January 1, 2019 $ 8,939 Contract liabilities at January 1, 2019 (20,526 ) Net balance at January 1, 2019 (11,587 ) Decrease due to amortization of revenue included in the beginning contract liability balance 2,049 Increase due to cash received, excluding amounts recognized as revenue during the period (14,029 ) Increase due to revenue recognized during the period but contingent on future performance 1,922 Net balance at March 31, 2019 $ (21,645 ) Contract assets at March 31, 2019 $ 10,862 Contract liabilities at March 31, 2019 (32,507 ) Transaction Price Allocated to Remaining Performance Obligations The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of March 31, 2019 (in thousands): For the Years Ending December 31, 2019(1) 2020 2021 2022 Total Mobilization and contract preparation revenue $ 2,691 $ 351 $ 510 $ 124 $ 3,676 Capital modification revenue 5,651 4,524 — — 10,175 Blended rate revenue — 11,118 11,427 — 22,545 Total $ 8,342 $ 15,993 $ 11,937 $ 124 $ 36,396 (1) Represents the nine-month period beginning April 1, 2019. The revenue included above consists of expected fixed mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. Revenue expected to be recognized in the future related to the blending of rates when a contract has operating dayrates that decrease over the initial contract term is also included. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at March 31, 2019. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in Topic 606 and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts, including dayrate revenue. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Information | 3. Supplemental Financial Information Condensed Accounts receivable, net of allowance for bad debts, consist of the following (in thousands): March 31, December 31, 2019 2018 Trade receivables $ 179,805 $ 160,463 Value added tax receivables 14,671 13,237 Related party receivables 103 174 Other 261 205 194,840 174,079 Allowance for bad debts (5,459 ) (5,459 ) Total $ 189,381 $ 168,620 Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2019 2018 Deferred contract costs $ 78,707 $ 70,021 Prepaid taxes 54,786 54,412 Rig spare parts and supplies 18,085 20,256 Current contract assets 8,755 6,832 Prepaid insurance 1,609 2,742 Other 8,290 9,133 Total $ 170,232 $ 163,396 Accrued liabilities consist of the following (in thousands): March 31, December 31, 2019 2018 Payroll and benefits $ 39,690 $ 47,564 Rig operating expenses 38,278 42,323 Accrued capital project/upgrade costs 29,902 37,379 Interest payable 36,813 28,234 Current operating lease liability 29,334 — Personal injury and other claims 5,356 5,544 Deferred revenue 6,840 2,803 Other 11,664 8,381 Total $ 197,877 $ 172,228 We adopted ASU 2016-02 effective January 1, 2019, which required us to recognize a right of use asset and a lease liability on the balance sheet for virtually all leases. See Note 9. Condensed Consolidated Statements of Cash Flows Information Noncash investing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Three Months Ended March 31, 2019 2018 Accrued but unpaid capital expenditures at period end $ 29,902 $ 14,104 Common stock withheld for payroll tax obligations (1) 844 733 Cash interest payments 19,688 19,688 Cash income taxes paid, net of (refunds): Foreign 8,700 2,033 State (15 ) 2 (1) Represents the cost of 81,480 shares and 49,082 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units in the three months ended March 31, 2019 and 2018, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Balance Sheets at March 31, 2019 and 2018, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 4. Earnings (Loss) Per Share A reconciliation of the numerators and the denominators of our basic and diluted per-share computations is as follows (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net (loss) income – basic and diluted numerator $ (73,328 ) $ 19,321 Weighted average shares – basic (denominator): 137,522 137,294 Dilutive effect of stock-based awards — 201 Weighted average shares including conversions – diluted (denominator) 137,522 137,495 (Loss) earnings per share: Basic $ (0.53 ) $ 0.14 Diluted $ (0.53 ) $ 0.14 The following table sets forth the share effects of stock-based awards excluded from the computations of diluted (loss) earnings per share , as the inclusion of such potentially dilutive shares would have been antidilutive for the periods presented (in thousands): Three Months Ended March 31, 2019 2018 Employee and director: Stock appreciation rights 1,022 1,237 Restricted stock units 1,027 623 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 5. Marketable Securities We report our investments as current assets in our unaudited Condensed Consolidated Balance Sheets in “Marketable securities,” representing the investment of cash available for current operations. See Note 6. Our investments in marketable securities are classified as available for sale and are summarized as follows (in thousands): March 31, 2019 Amortized Cost Unrealized Gain Market Value U.S. Treasury bills (due within one year) $ 249,842 $ 16 $ 249,858 December 31, 2018 Amortized Cost Unrealized Gain Market Value U.S. Treasury bills (due within one year) $ 299,813 $ 36 $ 299,849 |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 6. 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. We generally place our excess cash investments in U.S. Treasury bills and U.S. government-backed short-term money market instruments through several financial institutions. 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, we do not believe that we have any significant concentrations of credit risk at March 31, 2019. 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 and U.S. Treasury bills. Our Level 1 assets at March 31, 2019 consisted of cash held in money market funds of $109.1 million and investments in U.S. Treasury bills of $249.9 million. Our Level 1 assets at December 31, 2018 consisted of cash held in money market funds of $135.8 million and investments in U.S. Treasury bills of $299.8 million. Level 2 We had no Level 2 assets or liabilities as of March 31, 2019 or December 31, 2018. 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. We had no Level 3 assets as of March 31, 2019 or December 31, 2018. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis in accordance with GAAP. Assets measured at fair value are summarized below (in thousands). March 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Short-term investments $ 359,027 $ — $ — $ 359,027 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Short-term investments $ 435,671 $ — $ — $ 435,671 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 unaudited Condensed Consolidated Balance Sheets, approximate fair value based on the following assumptions: • Cash and cash equivalents -- The carrying amounts approximate fair value because of the short maturity of these instruments. • Accounts receivable and accounts payable -- The carrying amounts approximate fair value based on the nature of the instruments. 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 March 31, 2019 and December 31, 2018. 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 (in millions). March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 214.4 $ 249.5 $ 185.0 $ 249.5 7.875% Senior Notes due 2025 482.5 497.0 415.0 496.8 5.70% Senior Notes due 2039 336.2 497.2 305.0 497.2 4.875% Senior Notes due 2043 474.4 748.9 416.3 748.9 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 | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Drilling and Other Property and Equipment | 7. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): March 31, December 31, 2019 2018 Drilling rigs and equipment $ 8,149,585 $ 8,210,824 Land and buildings 63,916 63,757 Office equipment and other 92,095 91,819 Cost 8,305,596 8,366,400 Less: accumulated depreciation (3,134,738 ) (3,182,178 ) Drilling and other property and equipment, net $ 5,170,858 $ 5,184,222 During the three-month period ended March 31, 2019, we retired or scrapped certain rig equipment, a significant portion of which was fully depreciated, and also transferred the net book value of a previously impaired semisubmersible rig, the Ocean Guardian Ocean Guardian |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. 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 reasonably estimated, we record a liability for the amount of the reasonably 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 . We are one of several unrelated defendants in lawsuits filed in Louisiana state courts alleging that defendants manufactured, distributed or utilized drilling mud containing asbestos and, in our case, allowed such drilling mud to have been utilized aboard our drilling rigs. The plaintiffs seek, among other things, an award of unspecified compensatory and punitive damages. The manufacture and use of asbestos-containing drilling mud had already ceased before we acquired any of the drilling rigs addressed in these lawsuits. We believe that we are not liable for the damages asserted in the lawsuits pursuant to the terms of our 1989 asset purchase agreement with Diamond M Corporation. We are unable to estimate our potential exposure, if any, to these lawsuits at this time but do not believe that our ultimate liability, if any, resulting from this litigation will have a material effect on our consolidated financial condition, results of operations or cash flows. Other Litigation. We have been named in various other claims, lawsuits or threatened actions that are incidental to the ordinary course of our business, including a claim by one of our customers in Brazil, Petróleo Brasileiro S.A., or Petrobras, that it will seek to recover from its contractors, including us, any taxes, penalties, interest and fees that it must pay to the Brazilian tax authorities for our applicable portion of withholding taxes related to Petrobras’ charter agreements with its contractors. Additionally, tax authorities in Brazil have issued tax assessments on intercompany revenue between our subsidiaries doing business in Brazil that, if upheld by the Brazilian courts, could result in additional taxes, interest and penalties for which the fully assessed amounts would be material to our financial statements. We intend to defend these matters vigorously; however, litigation is inherently unpredictable, and the ultimate outcome or effect of any claim, lawsuit or action cannot be predicted with certainty. As a result, there can be no assurance as to the ultimate outcome of any litigation matter. Any claims against us, whether meritorious or not, could cause us to incur significant costs and expenses and require significant amounts of management and operational time and resources. In the opinion of our management, no pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. Personal Injury Claims . Under our insurance policies, which are scheduled to renew on May 1, 2019, our deductibles for marine liability insurance coverage with respect to personal injury claims not related to named windstorms in the U.S. Gulf of Mexico, which primarily result from Jones Act liability in the U.S. Gulf of Mexico, are expected to be $5.0 million for the first occurrence, with no aggregate deductible, and vary in amounts ranging between $5.0 million and, if aggregate claims exceed certain thresholds, up to $100.0 million for each subsequent occurrence, depending on the nature, severity and frequency of claims that might arise during the policy year. Our deductibles for personal injury claims arising due to named windstorms in the U.S. Gulf of Mexico are $25.0 million for the first occurrence, with no aggregate deductible, and vary in amounts ranging between $25.0 million and, if aggregate claims exceed certain thresholds, up to $100.0 million for each subsequent occurrence, depending on the nature, severity and frequency of claims that might arise during the policy year. 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 March 31, 2019 our estimated liability for personal injury claims was $25.8 million, of which $4.9 million and $20.9 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. At December 31, 2018 our estimated liability for personal injury claims was $27.9 million, of which $5.2 million and $22.7 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. Letters of Credit and Other. We were contingently liable as of March 31, 2019 in the amount of $25.7 million under certain customs, performance, tax and VAT bonds and letters of credit. Agreements relating to approximately $17.1 million of tax and customs bonds can require collateral at any time. As of March 31, 2019, we had not been required to make any collateral deposits with respect to these agreements. The remaining agreements cannot require collateral except in events of default. Banks have issued letters of credit on our behalf, securing certain of these bonds. |
Leases and Lease Commitments
Leases and Lease Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases and Lease Commitments | 9. Leases and Lease Commitments Our leasing activities primarily consist of operating leases for shorebase offices, office and information technology equipment, employee housing, vehicles, onshore storage yards and certain rig equipment and tools. Our leases have terms ranging from one month to ten years, some of which include options to extend the lease for up to five years and/or to terminate the lease within one year. Additionally, we are participants in four sale and leaseback arrangements with a subsidiary of GE Oil & Gas, or GE, pursuant to the 2016 sale of certain blowout preventers and related well control equipment, or Well Control Equipment, on our drillships and corresponding agreements to lease back that equipment under ten-year operating leases for approximately $26 million per year with renewal options for two successive five-year periods. At the time of the transactions with GE, the carrying value of the Well Control Equipment exceeded the aggregate proceeds received from the sale, resulting in the recognition of prepaid rent, which was being amortized over the respective terms of the leases. On January 1, 2019, as a result of the adoption of ASU 2016-02, the aggregate remaining prepaid rent balances of $3.9 million and $10.6 million, previously recorded as “Prepaid expenses and other current assets” and “Other assets,” respectively, were reclassified to a right-of-use lease asset within “Other assets” in our unaudited Condensed Consolidated Balance Sheets and continue to be amortized over the remaining terms of the leases. In connection with the sale and leaseback transactions, we also entered into a ten-year service agreement with another GE affiliate pertaining to the Well Control Equipment. Such services include management of maintenance, certification and reliability with respect to such equipment. In applying the standard, we utilize an exemption for short-term leases whereby we do not record leases with terms of one year or less on the balance sheet. We have also made an accounting policy election to not separate lease components from non-lease components for each of our classes of underlying assets, except for subsea equipment, which includes the Well Control Equipment discussed above. At inception, the consideration for the overall Well Control Equipment arrangement was allocated between the lease and service components based on an estimation of stand-alone selling price of each component, which maximized observable inputs. The costs associated with the service portion of the agreement are accounted for separately from the cost attributable to the equipment leases based on that allocation and thus, are not included in our right-of-use lease asset or lease liability balances. The non-lease components for each of our other classes of assets generally relate to maintenance, monitoring and security services and are not separated from their respective lease components. The lease term used for calculating our right-of-use assets and lease liabilities is determined by considering the noncancelable lease term, as well as any extension options that we are reasonably certain to exercise. The determination to include option periods is generally made by considering the activity in the region or for the rig corresponding to the respective lease, among other contract-based and market-based factors. We have used our incremental borrowing rate to discount future lease payments as the rate implicit in our leases is not readily determinable. To arrive at our incremental borrowing rate, we consider our unsecured borrowings and then adjust those rates to assume full collateralization and to factor in the individual lease term and payment structure. Total operating lease expense for the three months ended March 31, 2019 was $9.4 million, of which $1.3 million related to short-term leases. Total operating lease expense for the three months ended March 31, 2018 was $7.6 million. Supplemental information related to leases is as follows (in thousands, except weighted-average data): Three Months Ended March 31, 2019 Operating cash flows used for operating leases $ 11,302 Right-of-use assets obtained in exchange for lease liabilities 714 Weighted-average remaining lease term 7.0 years Weighted-average discount rate 9.24 % Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 28,373 2020 27,144 2021 26,565 2022 26,281 2023 26,280 Thereafter 64,062 Total lease payments $ 198,705 Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): 2019 (excluding three months ended March 31, 2019) $ 23,739 2020 27,865 2021 26,545 2022 26,296 2023 26,280 2024 26,352 Thereafter 37,710 Total lease payments 194,787 Less: interest (51,737 ) Total lease liability $ 143,050 Amounts recognized in unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 29,334 Other liabilities 113,716 Total operating lease liability $ 143,050 Operating lease assets, including prepaid rent balances related to the GE transaction, totaling $157.0 million are included in “Other assets” in our unaudited Condensed Consolidated Balance Sheets as of March 31, 2019. As of March 31, 2019, we have three additional operating leases for mooring equipment to be used on our rigs that have not yet commenced. These agreements provide for fixed lease payments of approximately $12 million to be paid over each of the respective lease terms, or an aggregate of approximately $36 million. These leases are expected to commence in April, May and September of 2019, and each is expected to have a lease term of approximately ten years. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 10. 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. 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 March 31, 2019, our active drilling rigs were located offshore three 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 and, unless otherwise noted, reflect earnings attributable to our floater rigs (drillships and semisubmersibles). The following tables provide information about disaggregated revenue by primary geographical market (in thousands): Three Months Ended March 31, 2019 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 138,632 $ 1,946 $ 140,578 South America 53,284 30 53,314 Europe 24,609 1,907 26,516 Australia 10,172 2,962 13,134 Total $ 226,697 $ 6,845 $ 233,542 Three Months Ended March 31, 2018 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States (1) $ 164,439 $ 2,137 $ 166,576 South America 54,268 1 54,269 Europe 11,392 1,378 12,770 Australia/Asia 57,827 4,068 61,895 Total $ 287,926 $ 7,584 $ 295,510 (1) Includes $4.8 million in loss-of-hire insurance proceeds received in 2018 related to early contract terminations in prior years for two jack-up rigs that previously worked in Mexico. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11 . Income Taxes In response to our interpretation of the Tax Cuts and Jobs Act, commonly referred to as theTax Reform Act, which was signed into law in late December 2017, we recorded a provisional net tax expense of $1.1 million during the fourth quarter of 2017, which included a charge relating to the one-time mandatory repatriation of previously deferred earnings of certain non-U.S. subsidiaries that are owned either wholly or partially by our U.S. subsidiaries, inclusive of the utilization of certain tax attributes offset by a provisional liability for uncertain tax positions related to such attributes. Due to the timing of the enactment of the Tax Reform Act, there has been and continues to be a significant amount of uncertainty as to the appropriate application of a number of the underlying provisions, pending further guidance and clarification from the relevant authorities. In 2018, the U.S. Department of the Treasury and Internal Revenue Service, or IRS, issued additional guidance which we believe clarified certain of our tax positions taken in 2017 and, consequently, during the first quarter of 2018, we reversed a $43.3 million liability for an uncertain tax position related to the deemed repatriation of accumulated non-U.S. earnings in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, or SAB 118. SAB 118 allowed companies to report the income tax benefits of the Tax Reform Act as a provisional amount based on a reasonable estimate, subject to adjustment during a reasonable measurement period, not to exceed 12 months, until the accounting and analysis under the FASB’s Accounting Standards Codification No. 740, Income Taxes |
General Information (Policies)
General Information (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-02, Leases We adopted ASU 2016-02 effective January 1, 2019 using an optional transition method requiring leases existing at, or entered into after, January 1, 2019 to be recognized and measured under the new accounting standard. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting for leases. In our adoption of ASU 2016-02, we also utilized a transition practical expedient package whereby we did not reassess (i) whether any of our expired or existing contracts contain a lease, (ii) the classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The adoption of this standard resulted in the recording of operating lease assets and offsetting operating lease liabilities of $146.8 million as of January 1, 2019, with no related impact on our unaudited Condensed Consolidated Statements of Stockholders’ Equity. See Note 9. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606 . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): March 31, December 31, 2019 2018 Trade receivables $ 179,805 $ 160,463 Current contract assets (1) 8,755 6,832 Noncurrent contract assets (1) 2,107 2,107 Current contract liabilities (deferred revenue) (1) (6,840 ) (2,803 ) Noncurrent contract liabilities (deferred revenue) (1) (25,667 ) (17,723 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. |
Summary of Significant Changes in Contract Assets and Contract Liabilities Balances | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances Contract assets at January 1, 2019 $ 8,939 Contract liabilities at January 1, 2019 (20,526 ) Net balance at January 1, 2019 (11,587 ) Decrease due to amortization of revenue included in the beginning contract liability balance 2,049 Increase due to cash received, excluding amounts recognized as revenue during the period (14,029 ) Increase due to revenue recognized during the period but contingent on future performance 1,922 Net balance at March 31, 2019 $ (21,645 ) Contract assets at March 31, 2019 $ 10,862 Contract liabilities at March 31, 2019 (32,507 ) |
Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of March 31, 2019 (in thousands): For the Years Ending December 31, 2019(1) 2020 2021 2022 Total Mobilization and contract preparation revenue $ 2,691 $ 351 $ 510 $ 124 $ 3,676 Capital modification revenue 5,651 4,524 — — 10,175 Blended rate revenue — 11,118 11,427 — 22,545 Total $ 8,342 $ 15,993 $ 11,937 $ 124 $ 36,396 (1) Represents the nine-month period beginning April 1, 2019. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (in thousands): March 31, December 31, 2019 2018 Trade receivables $ 179,805 $ 160,463 Value added tax receivables 14,671 13,237 Related party receivables 103 174 Other 261 205 194,840 174,079 Allowance for bad debts (5,459 ) (5,459 ) Total $ 189,381 $ 168,620 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2019 2018 Deferred contract costs $ 78,707 $ 70,021 Prepaid taxes 54,786 54,412 Rig spare parts and supplies 18,085 20,256 Current contract assets 8,755 6,832 Prepaid insurance 1,609 2,742 Other 8,290 9,133 Total $ 170,232 $ 163,396 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, December 31, 2019 2018 Payroll and benefits $ 39,690 $ 47,564 Rig operating expenses 38,278 42,323 Accrued capital project/upgrade costs 29,902 37,379 Interest payable 36,813 28,234 Current operating lease liability 29,334 — Personal injury and other claims 5,356 5,544 Deferred revenue 6,840 2,803 Other 11,664 8,381 Total $ 197,877 $ 172,228 |
Noncash Investing and Financing Activities | Noncash investing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Three Months Ended March 31, 2019 2018 Accrued but unpaid capital expenditures at period end $ 29,902 $ 14,104 Common stock withheld for payroll tax obligations (1) 844 733 Cash interest payments 19,688 19,688 Cash income taxes paid, net of (refunds): Foreign 8,700 2,033 State (15 ) 2 (1) Represents the cost of 81,480 shares and 49,082 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units in the three months ended March 31, 2019 and 2018, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Balance Sheets at March 31, 2019 and 2018, respectively. |
Earnings (Loss) Per Share (Tab
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 is as follows (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net (loss) income – basic and diluted numerator $ (73,328 ) $ 19,321 Weighted average shares – basic (denominator): 137,522 137,294 Dilutive effect of stock-based awards — 201 Weighted average shares including conversions – diluted (denominator) 137,522 137,495 (Loss) earnings per share: Basic $ (0.53 ) $ 0.14 Diluted $ (0.53 ) $ 0.14 |
Securities Excluded from Computation of Diluted Earning (Loss) Per Share | The following table sets forth the share effects of stock-based awards excluded from the computations of diluted (loss) earnings per share , as the inclusion of such potentially dilutive shares would have been antidilutive for the periods presented (in thousands): Three Months Ended March 31, 2019 2018 Employee and director: Stock appreciation rights 1,022 1,237 Restricted stock units 1,027 623 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Our investments in marketable securities are classified as available for sale and are summarized as follows (in thousands): March 31, 2019 Amortized Cost Unrealized Gain Market Value U.S. Treasury bills (due within one year) $ 249,842 $ 16 $ 249,858 December 31, 2018 Amortized Cost Unrealized Gain Market Value U.S. Treasury bills (due within one year) $ 299,813 $ 36 $ 299,849 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | March 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Short-term investments $ 359,027 $ — $ — $ 359,027 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Short-term investments $ 435,671 $ — $ — $ 435,671 |
Fair Values and Related Carrying Values of Our Debt Instruments | Fair values and related carrying values of our senior notes are shown below (in millions). March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 214.4 $ 249.5 $ 185.0 $ 249.5 7.875% Senior Notes due 2025 482.5 497.0 415.0 496.8 5.70% Senior Notes due 2039 336.2 497.2 305.0 497.2 4.875% Senior Notes due 2043 474.4 748.9 416.3 748.9 |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (in thousands): March 31, December 31, 2019 2018 Drilling rigs and equipment $ 8,149,585 $ 8,210,824 Land and buildings 63,916 63,757 Office equipment and other 92,095 91,819 Cost 8,305,596 8,366,400 Less: accumulated depreciation (3,134,738 ) (3,182,178 ) Drilling and other property and equipment, net $ 5,170,858 $ 5,184,222 |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Information Related to Leases | Supplemental information related to leases is as follows (in thousands, except weighted-average data): Three Months Ended March 31, 2019 Operating cash flows used for operating leases $ 11,302 Right-of-use assets obtained in exchange for lease liabilities 714 Weighted-average remaining lease term 7.0 years Weighted-average discount rate 9.24 % |
Schedule of Future Minimum Rental Payment Under Non-Cancelable Operating Leases | Future minimum rental payments under noncancelable operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 28,373 2020 27,144 2021 26,565 2022 26,281 2023 26,280 Thereafter 64,062 Total lease payments $ 198,705 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2019 are as follows (in thousands): 2019 (excluding three months ended March 31, 2019) $ 23,739 2020 27,865 2021 26,545 2022 26,296 2023 26,280 2024 26,352 Thereafter 37,710 Total lease payments 194,787 Less: interest (51,737 ) Total lease liability $ 143,050 Amounts recognized in unaudited Condensed Consolidated Balance Sheet: Accrued liabilities $ 29,334 Other liabilities 113,716 Total operating lease liability $ 143,050 |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Information about Disaggregated Revenue by Primary Geographical Market | The following tables provide information about disaggregated revenue by primary geographical market (in thousands): Three Months Ended March 31, 2019 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 138,632 $ 1,946 $ 140,578 South America 53,284 30 53,314 Europe 24,609 1,907 26,516 Australia 10,172 2,962 13,134 Total $ 226,697 $ 6,845 $ 233,542 Three Months Ended March 31, 2018 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States (1) $ 164,439 $ 2,137 $ 166,576 South America 54,268 1 54,269 Europe 11,392 1,378 12,770 Australia/Asia 57,827 4,068 61,895 Total $ 287,926 $ 7,584 $ 295,510 (1) Includes $4.8 million in loss-of-hire insurance proceeds received in 2018 related to early contract terminations in prior years for two jack-up rigs that previously worked in Mexico. |
General Information - Additiona
General Information - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 25, 2019 | Mar. 31, 2019 | Jan. 01, 2019 |
Property Plant And Equipment [Line Items] | |||
Operating lease assets | $ 157,000 | ||
Operating lease liabilities | $ 143,050 | ||
ASU 2016-02 [Member] | |||
Property Plant And Equipment [Line Items] | |||
Operating lease assets | $ 146,800 | ||
Operating lease liabilities | $ 146,800 | ||
Subsequent Event [Member] | |||
Property Plant And Equipment [Line Items] | |||
Outstanding common stock owned by loews corporation | 53.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Initial term of contract | 2 months |
Maximum [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Initial term of contract | 60 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Trade receivables | $ 179,805 | $ 160,463 |
Current contract assets | 8,755 | 6,832 |
Noncurrent contract assets | 2,107 | 2,107 |
Current contract liabilities (deferred revenue) | (6,840) | (2,803) |
Noncurrent contract liabilities (deferred revenue) | $ (25,667) | $ (17,723) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Significant Changes in Contract Assets and Contract Liabilities Balances (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract assets at January 1, 2019 | $ 8,939 |
Contract liabilities at January 1, 2019 | (20,526) |
Net balance at January 1, 2019 | (11,587) |
Decrease due to amortization of revenue included in the beginning contract liability balance | 2,049 |
Increase due to cash received, excluding amounts recognized as revenue during the period | (14,029) |
Increase due to revenue recognized during the period but contingent on future performance | 1,922 |
Net balance at March 31, 2019 | (21,645) |
Contract assets at March 31, 2019 | 10,862 |
Contract liabilities at March 31, 2019 | $ (32,507) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 36,396 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue remaining performance obligation | $ 8,342 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation | $ 15,993 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation | $ 11,937 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation | $ 124 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 3,676 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 2,691 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 351 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 510 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 124 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 10,175 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 5,651 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 4,524 |
Blended Rate Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 22,545 |
Blended Rate Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 11,118 |
Blended Rate Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 11,427 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 36,396 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 3,676 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 10,175 |
Blended Rate Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 22,545 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) (Parenthetical) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivables | $ 179,805 | $ 160,463 |
Value added tax receivables | 14,671 | 13,237 |
Related party receivables | 103 | 174 |
Other | 261 | 205 |
Receivables Gross Current, Total | 194,840 | 174,079 |
Allowance for bad debts | (5,459) | (5,459) |
Total | $ 189,381 | $ 168,620 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred contract costs | $ 78,707 | $ 70,021 |
Prepaid taxes | 54,786 | 54,412 |
Rig spare parts and supplies | 18,085 | 20,256 |
Current contract assets | 8,755 | 6,832 |
Prepaid insurance | 1,609 | 2,742 |
Other | 8,290 | 9,133 |
Total | $ 170,232 | $ 163,396 |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Payroll and benefits | $ 39,690 | $ 47,564 |
Rig operating expenses | 38,278 | 42,323 |
Accrued capital project/upgrade costs | 29,902 | 37,379 |
Interest payable | 36,813 | 28,234 |
Current operating lease liability | 29,334 | |
Personal injury and other claims | 5,356 | 5,544 |
Deferred revenue | 6,840 | 2,803 |
Other | 11,664 | 8,381 |
Total | $ 197,877 | $ 172,228 |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Accrued but unpaid capital expenditures at period end | $ 29,902 | $ 14,104 |
Common stock withheld for payroll tax obligations | 844 | 733 |
Cash interest payments | 19,688 | 19,688 |
Foreign [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | 8,700 | 2,033 |
State [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | $ (15) | $ 2 |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Investing and Financing Activities (Parenthetical) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Number of shares of common stock withheld | 81,480 | 49,082 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Per-Share Computations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net (loss) income – basic and diluted numerator | $ (73,328) | $ 19,321 |
Weighted average shares – basic (denominator): | 137,522,000 | 137,294,000 |
Dilutive effect of stock-based awards | 201,000 | |
Total weighted-average shares outstanding | 137,522,000 | 137,495,000 |
(Loss) earnings per share: | ||
Basic | $ (0.53) | $ 0.14 |
Diluted | $ (0.53) | $ 0.14 |
Earnings (Loss) Per Share - Sec
Earnings (Loss) Per Share - Securities Excluded from Computations of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock Units [Member] | ||
Employee and director: | ||
Securities excluded from computation of diluted earning per share | 1,027 | 623 |
Stock Appreciation Rights [Member] | ||
Employee and director: | ||
Securities excluded from computation of diluted earning per share | 1,022 | 1,237 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities [Line Items] | ||
Market Value | $ 249,858 | $ 299,849 |
U.S. Treasury Bills (due within one year) [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 249,842 | 299,813 |
Unrealized Gain | 16 | 36 |
Market Value | $ 249,858 | $ 299,849 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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 | $ 109.1 | $ 135.8 |
U.S. Treasury Bills (due within one year) [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | $ 249.9 | $ 299.8 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 359,027 | $ 435,671 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 359,027 | $ 435,671 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 214.4 | $ 185 |
Carrying Value | 249.5 | 249.5 |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 482.5 | 415 |
Carrying Value | 497 | 496.8 |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 336.2 | 305 |
Carrying Value | 497.2 | 497.2 |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 474.4 | 416.3 |
Carrying Value | $ 748.9 | $ 748.9 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Parenthetical) (Detail) | Mar. 31, 2019 | Dec. 31, 2018 |
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% |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
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 a_3
Drilling and Other Property and Equipment - Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 8,305,596 | $ 8,366,400 |
Less accumulated depreciation | (3,134,738) | (3,182,178) |
Drilling and other property and equipment, net | 5,170,858 | 5,184,222 |
Drilling Rigs and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 8,149,585 | 8,210,824 |
Land and Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 63,916 | 63,757 |
Office Equipment and Other [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 92,095 | $ 91,819 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Contingencies And Commitments [Line Items] | ||
Deductible for marine liability coverage including personal injury claims, per first occurrence | $ 5,000,000 | |
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 | |
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 25,700,000 | |
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 | 17,100,000 | |
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 | |
Personal Injury Claims [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | 25,800,000 | $ 27,900,000 |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | 4,900,000 | 5,200,000 |
Personal Injury Claims [Member] | Other Liabilities [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | $ 20,900,000 | $ 22,700,000 |
Leases and Leases Commitments -
Leases and Leases Commitments - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Lease | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||
Options to extend the leases | 5 years | ||
Operating cash flows used for operating leases | $ 11,302 | ||
Total operating lease expense | 9,400 | $ 7,600 | |
Short-term leases expense | 1,300 | ||
Operating lease assets | $ 157,000 | ||
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | us-gaap:OtherAssetsMember | ||
Mooring Equipment [Member] | |||
Lessee Lease Description [Line Items] | |||
Number of additional operating lease not yet commenced | Lease | 3 | ||
Operating lease payments, lease not yet commenced | $ 12,000 | ||
Aggregate operating lease liability, lease not yet commenced | $ 36,000 | ||
Lease expected to commence lease term | 10 years | ||
ASU 2016-02 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease assets | $ 146,800 | ||
ASU 2016-02 [Member] | Sale and Lease-back Equipment [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 10 years | ||
Options to extend the leases | 5 years | ||
Operating cash flows used for operating leases | $ 26,000 | ||
Sale lease back transaction renewal term description | Renewal options for two successive five-year periods. | ||
Sale leaseback transaction service period | ten-year | ||
ASU 2016-02 [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Lessee Lease Description [Line Items] | |||
Prepaid rent | 3,900 | ||
ASU 2016-02 [Member] | Other Assets [Member] | |||
Lessee Lease Description [Line Items] | |||
Prepaid rent | $ 10,600 | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 1 month | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease term | 10 years | ||
Options to terminate the leases | 1 year |
Leases and Leases Commitments_2
Leases and Leases Commitments - Supplemental Information Related to Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 11,302 |
Right-of-use assets obtained in exchange for lease liabilities | $ 714 |
Weighted-average remaining lease term | 7 years |
Weighted-average discount rate | 9.24% |
Leases and Leases Commitments_3
Leases and Leases Commitments - Schedule of Future Minimum Rental Payment Under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 28,373 |
2020 | 27,144 |
2021 | 26,565 |
2022 | 26,281 |
2023 | 26,280 |
Thereafter | 64,062 |
Total lease payments | $ 198,705 |
Leases and Leases Commitments_4
Leases and Leases Commitments - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding three months ended March 31, 2019) | $ 23,739 |
2020 | 27,865 |
2021 | 26,545 |
2022 | 26,296 |
2023 | 26,280 |
2024 | 26,352 |
Thereafter | 37,710 |
Total lease payments | 194,787 |
Less: interest | (51,737) |
Operating lease liabilities | 143,050 |
Amounts recognized in unaudited Condensed Consolidated Balance Sheet: | |
Accrued liabilities | $ 29,334 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesMember |
Other liabilities | $ 113,716 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesMember |
Total operating lease liability | $ 143,050 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019SegmentCountry | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of countries with rigs | Country | 3 |
Segments and Geographic Area _4
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Primary Geographical Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 233,542 | $ 295,510 |
Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 226,697 | 287,926 |
Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 6,845 | 7,584 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 140,578 | 166,576 |
United States [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 138,632 | 164,439 |
United States [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,946 | 2,137 |
South America [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 53,314 | 54,269 |
South America [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 53,284 | 54,268 |
South America [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 30 | 1 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 26,516 | 12,770 |
Europe [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 24,609 | 11,392 |
Europe [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,907 | 1,378 |
Australia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 13,134 | |
Australia [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 10,172 | |
Australia [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,962 | |
Australia/Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 61,895 | |
Australia/Asia [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 57,827 | |
Australia/Asia [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4,068 |
Segments and Geographic Area _5
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Primary Geographical Market (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)Rig | |
United States [Member] | Jack-up Rigs [Member] | |
Segment Reporting Information [Line Items] | |
Proceeds from loss-of-hire insurance related to early contract terminations | $ | $ 4.8 |
MEXICO | |
Segment Reporting Information [Line Items] | |
Number of Jackup Rigs | Rig | 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Net tax expense related to tax law change | $ 1.1 | |
Reversal of liability for an uncertain tax position | $ 43.3 |