Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DOFSQ | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,050,347 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-13926 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0321760 | |
Entity Address, Address Line One | 15415 Katy Freeway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77094 | |
City Area Code | 281 | |
Local Phone Number | 492-5300 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 499,138 | $ 156,281 |
Accounts receivable | 273,923 | 256,315 |
Less: allowance for credit losses | (5,760) | (5,459) |
Accounts receivable, net | 268,163 | 250,856 |
Prepaid expenses and other current assets | 76,769 | 68,658 |
Asset held for sale | 1,000 | |
Total current assets | 844,070 | 476,795 |
Drilling and other property and equipment, net of accumulated depreciation | 4,329,983 | 5,152,828 |
Other assets | 204,280 | 204,421 |
Total assets | 5,378,333 | 5,834,044 |
Current liabilities: | ||
Accounts payable | 59,564 | 68,586 |
Accrued liabilities | 196,031 | 210,780 |
Taxes payable | 16,437 | 23,228 |
Current maturities of long-term debt | 2,412,215 | |
Total current liabilities | 2,684,247 | 302,594 |
Long-term debt | 1,975,741 | |
Deferred tax liability | 37,825 | 47,528 |
Other liabilities | 284,773 | 275,971 |
Total liabilities | 3,006,845 | 2,601,834 |
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; 145,107,046 shares issued and 137,944,059 shares outstanding at March 31, 2020; 144,781,766 shares issued and 137,703,910 shares outstanding at December 31, 2019) | 1,451 | 1,448 |
Additional paid-in capital | 2,025,887 | 2,024,347 |
Retained earnings | 550,261 | 1,412,201 |
Accumulated other comprehensive loss | (19) | (18) |
Treasury stock, at cost (7,162,987 and 7,077,856 shares of common stock at March 31, 2020 and December 31, 2019, respectively) | (206,092) | (205,768) |
Total stockholders’ equity | 2,371,488 | 3,232,210 |
Total liabilities and stockholders’ equity | $ 5,378,333 | $ 5,834,044 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Paranthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 145,107,046 | 144,781,766 |
Common stock, shares outstanding | 137,944,059 | 137,703,910 |
Treasury stock, shares | 7,162,987 | 7,077,856 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 229,170 | $ 233,542 |
Operating expenses: | ||
Depreciation | 93,043 | 86,898 |
General and administrative | 16,345 | 17,312 |
Impairment of assets | 774,028 | |
(Gain) loss on disposition of assets | (3,433) | 4,287 |
Total operating expenses | 1,075,607 | 282,669 |
Operating loss | (846,437) | (49,127) |
Other income (expense): | ||
Interest income | 389 | 2,414 |
Interest expense, net of amounts capitalized | (32,321) | (29,925) |
Foreign currency transaction gain (loss) | 207 | (1,085) |
Other, net | 323 | 333 |
Loss before income tax benefit | (877,839) | (77,390) |
Income tax benefit | 15,899 | 4,062 |
Net loss | $ (861,940) | $ (73,328) |
Loss per share, Basic and Diluted | $ (6.25) | $ (0.53) |
Weighted-average shares outstanding: | ||
Shares of common stock | 137,831 | 137,522 |
Total weighted-average shares outstanding | 137,831 | 137,522 |
Contract Drilling [Member] | ||
Revenues: | ||
Total revenues | $ 217,866 | $ 226,697 |
Operating expenses: | ||
Contract drilling, excluding depreciation | 184,511 | 167,429 |
Reimbursable Expenses [Member] | ||
Revenues: | ||
Total revenues | 11,304 | 6,845 |
Operating expenses: | ||
Contract drilling, excluding depreciation | $ 11,113 | $ 6,743 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (861,940) | $ (73,328) |
Derivative financial instruments: | ||
Reclassification adjustment for gain included in net loss | (1) | (1) |
Investments in marketable securities: | ||
Unrealized holding gain | 14 | |
Reclassification adjustment for gain included in net loss | (32) | |
Total other comprehensive loss | (1) | (19) |
Comprehensive loss | $ (861,941) | $ (73,347) |
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] |
Beginning 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 | (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 | ||||
Beginning Balance at Dec. 31, 2019 | 3,232,210 | $ 1,448 | 2,024,347 | 1,412,201 | (18) | $ (205,768) |
Beginning Balance, shares at Dec. 31, 2019 | 144,781,766 | 7,077,856 | ||||
Net loss | (861,940) | (861,940) | ||||
Stock-based compensation, net of tax | 1,219 | $ 3 | 1,540 | $ (324) | ||
Stock-based compensation, net of tax, shares | 325,280 | 85,131 | ||||
Net loss on derivative financial instruments | (1) | (1) | ||||
Ending Balance at Mar. 31, 2020 | $ 2,371,488 | $ 1,451 | $ 2,025,887 | $ 550,261 | $ (19) | $ (206,092) |
Ending Balance, shares at Mar. 31, 2020 | 145,107,046 | 7,162,987 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (861,940) | $ (73,328) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 93,043 | 86,898 |
Loss on impairment of assets | 774,028 | |
(Gain) loss on disposition of assets | (3,433) | 4,287 |
Deferred tax provision | (13,797) | (7,769) |
Stock-based compensation expense | 1,543 | 1,414 |
Contract liabilities, net | 34,285 | 11,980 |
Contract assets, net | 3,092 | (1,922) |
Deferred contract costs, net | (14,576) | (6,244) |
Other assets, noncurrent | (393) | 98 |
Other liabilities, noncurrent | (3,346) | (570) |
Other | 451 | (1,517) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,307) | (20,761) |
Prepaid expenses and other current assets | 131 | 604 |
Accounts payable and accrued liabilities | (9,586) | 13,329 |
Taxes payable | (5,036) | (3,637) |
Net cash (used in) provided by operating activities | (22,841) | 2,862 |
Investing activities: | ||
Capital expenditures | (74,850) | (85,890) |
Proceeds from maturities of marketable securities | 1,000,000 | |
Purchase of marketable securities | (948,298) | |
Proceeds from disposition of assets, net of disposal costs | 4,548 | 95 |
Net cash used in investing activities | (70,302) | (34,093) |
Financing activities: | ||
Borrowings under Credit Facility | 436,000 | |
Other | (2) | |
Net cash provided by (used in) financing activities | 436,000 | (2) |
Net change in cash and cash equivalents | 342,857 | (31,233) |
Cash and cash equivalents, beginning of period | 156,281 | 154,073 |
Cash and cash equivalents, end of period | $ 499,138 | $ 122,840 |
General Information
General Information | 3 Months Ended |
Mar. 31, 2020 | |
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/A for the year ended December 31, 2019 (File No. 1-13926). As of May 1, 2020, 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 United States (“U.S.”) (“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 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 June 2016, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to measure credit losses of certain financial assets, including trade receivables, utilizing a We adopted ASU 2016-13 and its related amendments Asset Held for Sale We reported the Ocean Confidence |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Going Concern | 2. Going Concern As a result of the prolonged downturn in the offshore contract drilling industry, combined with the added economic uncertainty in the global energy markets resulting from a further decline in energy prices and the COVID-19 pandemic and efforts to mitigate the spread of the virus, we have reported a net loss of $861.9 million, inclusive of a $774.0 million impairment charge, for the three months ended March 31, 2020. As of March 31, 2020, we had an aggregate of approximately $2.4 billion in senior notes and borrowings under our revolving credit facility outstanding with stated maturities at various times from 2023 through 2043, of which an aggregate of $436.0 million was borrowed under our revolving credit facility. As described in Note 13 “Subsequent Events,” on April 26, 2020, Diamond Offshore Drilling, Inc. (the “Company”) and certain of its direct and indirect subsidiaries (together with the Company, the “Debtors”) filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). As a result of the filing of the Chapter 11 Cases, the principal and interest due under our outstanding senior notes and revolving credit facility became immediately due and payable and have been presented as “Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet at March 31, 2020 . However, any efforts to enforce such payment obligations with respect to our senior notes and revolving credit facility are automatically stayed as a result of the filing of the Chapter 11 Cases. We have projected that we will not have sufficient cash on hand or available liquidity to repay such outstanding debt. These conditions and events raise substantial doubt over our ability to continue as a going concern for twelve months after the date our financial statements are issued. Financial information in this report has been prepared on the basis that we will continue as a going concern, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business as they come due. Financial information in this report does not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if we were unable to realize our assets and settle our liabilities as a going concern in the normal course of operations. Such adjustments could be material. Our long-term liquidity requirements, the adequacy of capital resources and ability to continue as a going concern are difficult to predict at this time. If our future sources of liquidity are insufficient, we could face substantial liquidity constraints and be unable to continue as a going concern and will likely be required to significantly reduce, delay or eliminate capital expenditures, implement further cost reductions, or seek other financing alternatives. Although we anticipate that the Chapter 11 Cases will help address our liquidity concerns, the approval of a plan of reorganization is not within our control and uncertainty remains over the Bankruptcy Court's approval of a plan of reorganization. As such we have concluded that substantial doubt continues to exist about our ability to continue as a going concern. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our contract drilling services 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. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. 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. 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 are allocated across the single performance obligation and recognized ratably 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. Consideration for activities that correspond to a distinct time increment within the contract term is recognized in the period when the services are performed. The total transaction price is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. 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, 2020 2019 Trade receivables $ 218,666 $ 199,572 Current contract assets (1) 3,223 6,314 Current contract liabilities (deferred revenue) (1) (23,662 ) (9,573 ) Noncurrent contract liabilities (deferred revenue) (1) (58,728 ) (38,531 ) (1) 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, 2020 $ 6,314 Contract liabilities at January 1, 2020 (48,104 ) Net balance at January 1, 2020 (41,790 ) Decrease due to amortization of revenue included in the beginning contract liability balance 2,591 Increase due to cash received, excluding amounts recognized as revenue during the period (36,876 ) Increase due to revenue recognized during the period but contingent on future performance 160 Decrease due to transfer to receivables during the period (3,252 ) Net balance at March 31, 2020 $ (79,167 ) Contract assets at March 31, 2020 $ 3,223 Contract liabilities at March 31, 2020 (82,390 ) Transaction Price Allocated to Remaining Performance Obligations The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of March 31, 2020 (in thousands): For the Years Ending December 31, 2020 (1) 2021 2022 Total Mobilization and contract preparation revenue $ 3,135 $ 2,683 $ 352 $ 6,170 Capital modification revenue 16,054 15,509 1,452 33,015 Blended rate revenue and other 31,249 8,165 — 39,414 Total $ 50,438 $ 26,357 $ 1,804 $ 78,599 (1) nine-month The revenue included above consists of expected fixed m obilization and upgrade revenue for both wholly and partially unsatisfied performance obligations , as well as expected variable m obilization 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, 2020 . 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 ASU No. 2014-09, Revenue from Contracts with Customers ( Topic 606 ) and its related amendments, 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 . |
Impairment of Assets
Impairment of Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | 4 . Impairment of Assets 2020 Evaluation. During the first quarter of 2020, the business climate in which we operate experienced a significant adverse change, primarily as a result of the market impacts of the oil price war between Saudi Arabia and Russia and regulatory, market and commercial challenges arising as a result of the COVID-19 pandemic and efforts to mitigate the spread of the virus, both of which resulted in a dramatic decline in oil prices. At March 31, 2020, we evaluated five of our drilling rigs that had indicators of impairment. Based on our assumptions and analysis at that time, we determined that the carrying value of four of these rigs was impaired (we collectively refer to these four rigs as the 2020 Impaired Rigs). We estimated the fair values of the 2020 Impaired Rigs using an income approach, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures, repair and regulatory survey costs, as well as We recorded aggregate impairments of $774.0 million for the three months ended March 31, 2020 related to our 2020 Impaired Rigs. See Note 7. We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If market fundamentals in the offshore oil and gas industry deteriorate further or a market recovery is further delayed, we may be required to recognize additional impairment charges in future periods. See Note 13. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Condensed Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): March 31, December 31, 2020 2019 Trade receivables $ 218,666 $ 199,572 Federal income tax receivables 38,574 38,574 Value added tax receivables 16,111 17,716 Related party receivables 80 166 Other 492 287 273,923 256,315 Allowance for credit losses (5,760 ) (5,459 ) Total $ 268,163 $ 250,856 The Allowance for credit losses at March 31, 2020 and December 31, 2019, represents our current estimate of credit losses associated with our “Trade receivables” and “Current contract assets.” See Note 7 for a discussion of our concentrations of credit risk and allowance for credit losses . Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2020 2019 Deferred contract costs $ 31,956 $ 20,019 Rig spare parts and supplies 14,971 18,250 Prepaid taxes 13,877 12,475 Prepaid rig costs 3,897 2,990 Current contract assets 3,223 6,314 Prepaid insurance 1,940 2,892 Prepaid software costs 1,518 2,319 Other 5,387 3,399 Total $ 76,769 $ 68,658 Accrued liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Rig operating expenses $ 45,231 $ 37,969 Interest payable 36,813 28,234 Payroll and benefits 28,713 42,494 Accrued capital project/upgrade costs 26,094 56,603 Deferred revenue 23,662 9,573 Current operating lease liability 20,482 20,030 Personal injury and other claims 6,484 7,074 Shorebase and administrative costs 4,374 5,275 Other 4,178 3,528 Total $ 196,031 $ 210,780 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, 2020 2019 Accrued but unpaid capital expenditures at period end $ 26,094 $ 29,902 Common stock withheld for payroll tax obligations (1) 324 844 Cash interest payments 19,785 19,688 Cash income taxes paid, net of (refunds): Foreign 7,142 8,700 State (14 ) (15 ) (1) Represents the cost of 85,131 shares and 81,480 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units during the three-month periods ended March 31, 2020 and 2019, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Balance Sheets at March 31, 2020 and 2019, respectively. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 6. Loss Per Share We present basic and diluted net loss per share on our unaudited Condensed Consolidated Statements of Operations. Basic net loss per share excludes dilution and is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. For all periods in which we experience a net loss, all shares of common stock issuable upon exercise of outstanding stock appreciation rights and vesting of outstanding restricted stock units have been excluded from the calculation of weighted-average shares because their inclusion would be antidilutive. The following table sets forth the stock-based awards excluded from the computations of diluted loss per share (in thousands). Three Months Ended March 31, 2020 2019 Employee and director: Stock appreciation rights 918 1,022 Restricted stock units 912 1,027 |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 7. Financial Instruments and Fair Value Disclosures Concentrations of Credit Risk and Allowance for Credit Losses Our credit risk corresponds primarily to trade receivables. Since the market for our services is the offshore oil and gas industry, our customer base consists primarily of major and independent oil and gas companies, as well as government-owned oil companies. At March 31, 2020, we believe that we have potentially significant concentrations of credit risk due to the number of rigs we currently have contracted and our limited number of customers, as some of our customers have contracted for multiple rigs. 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, we perform a credit review on that customer, including a review of credit ratings and financial statements. Based on that credit review, we may require that the customer have a bank issue a letter of credit on their behalf, prepay for the services in advance or provide other credit enhancements. At March 31, 2020, we have not required customers to pay for services in advance, nor have we required credit enhancements from our customers. We have historically used the specific identification method to identify and reserve for uncollectible accounts. The amounts reserved for uncollectible accounts in previous periods have not been significant, individually or in comparison to our total revenues. At March 31, 2020, $6.9 million in trade receivables were considered past due by 30 days or more, of which $5.5 million were fully reserved for in previous years and the remaining $1.4 million were less than 90 days past due and considered collectible. Pursuant to ASU 2016-13, we have reviewed our historical credit loss experience over a look-back period of ten years, which we deem to be representative of both up-turns and down-cycles in the offshore drilling industry. Based on this review, we developed a credit loss factor using a weighted-average ratio of our actual credit losses to revenues during the look-back period. In addition, we also considered current and future anticipated economic conditions in determining our credit loss factor, including crude oil prices and liquidity of credit markets. In applying the requirements of CECL, we segregated our trade receivables into three credit loss risk pools based on customer credit ratings, each of which represents a tier of increasing credit risk. We calculated a credit loss factor based on historical loss rate information and then applied a multiple of our credit loss factor to each of these risk pools, considering the impact of current and future economic information and the level of risk associated with these pools, to calculate our current estimate of credit losses. Trade receivables that are fully covered by allowances for credit losses are excluded from these risk pools for purposes of calculating our current estimate of credit losses. For purposes of calculating our current estimate of credit losses at January 1, 2020 and March 31, 2020, all trade receivables were deemed to be in a single risk pool based on their credit ratings at each respective period. Our current estimate of credit losses under CECL was $0.3 million for the three months ended March 31, 2020, all of which related to the cumulative adjustment recorded for the initial adoption of ASU 2016-13. Due to immateriality, the cumulative adjustment was recorded in “Contract drilling expense, excluding depreciation” in our unaudited Condensed Consolidated Statements of Operations instead of in opening retained earnings as prescribed in ASU 2016-13 . Our total allowance for credit losses was $ 5.8 million and $ 5.5 million at March 31, 2020 and December 31, 2019, respectively. See Note s 1 and 5 . 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 2 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. 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 an impairment charge related to four of our drilling rigs, which were measured at fair value on a nonrecurring basis at March 31, 2020 and have presented the aggregate loss in “Impairment of assets” in our unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2020. Assets measured at fair value are summarized below (in thousands). March 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Three-Months Ended (1) Recurring fair value measurements: Money market funds $ 482,699 $ — $ — $ 482,699 Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ 175,400 $ 175,400 $ 774,028 (1) Represents the aggregate impairment charge recognized during the three months ended March 31, 2020 and corresponding book value as of March 31, 2020 of the four semisubmersible rigs, which were written down to their estimated fair values. See Note 4. December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Money market funds $ 135,300 $ — $ — $ 135,300 We believe that the carrying amounts of our other financial assets and liabilities (excluding our senior notes), 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. Our senior notes are not measured at fair value; however, under the GAAP fair value hierarchy, our senior notes would be considered Level 2 liabilities. The fair value of our senior notes was derived using a third-party pricing service at March 31, 2020 and December 31, 2019. 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, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 73.7 $ 249.6 $ 212.5 $ 249.6 7.875% Senior Notes due 2025 147.5 497.3 435.0 497.1 5.70% Senior Notes due 2039 77.5 497.3 292.5 497.3 4.875% Senior Notes due 2043 101.3 749.0 408.8 749.0 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, 2020 | |
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 (in thousands): March 31, December 31, 2020 2019 Drilling rigs and equipment $ 7,273,173 $ 8,004,489 Land and buildings 64,342 64,267 Office equipment and other 92,965 92,289 Cost 7,430,480 8,161,045 Less: accumulated depreciation (3,100,497 ) (3,008,217 ) Drilling and other property and equipment, net $ 4,329,983 $ 5,152,828 During the three months ended March 31, 2020, we recorded an aggregate impairment charge of $774.0 million, to write down four of our drilling rigs with indicators of impairment to their estimated fair values. See Notes 4 and 7. |
Credit Agreements and Credit Ra
Credit Agreements and Credit Ratings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Agreements and Credit Ratings | 9. Credit Agreements and Credit Ratings Credit Agreements Effective March 17, 2020, we terminated our $225.0 million revolving credit agreement, which was scheduled to mature on October 22, 2020. At the time of termination, there were no borrowings outstanding under the facility. We did not incur any early termination penalties in connection with the termination and wrote off $0.5 million in deferred arrangement fees associated with the facility. In March 2020, we borrowed $436.0 million under our $950.0 million senior 5-year revolving credit agreement, or Credit Agreement, which was entered into on October 2, 2018. The weighted average interest rate on the combined borrowings at March 31, 2020 was 5.32%. Borrowings under the Credit Agreement mature at the earliest of the maturity of the Credit Agreement on October 2, 2023, termination of the commitments or acceleration upon an event of default. The filing of the Chapter 11 Cases constituted an event of default and the principal and interest due under the Credit Agreement became immediately due and payable and therefore ,have been presented as “Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet at March 31, 2020. In January 2020, a $6.0 million financial letter of credit was issued under the Credit Agreement in support of a previously issued surety bond. See Note 13 “Subsequent Events.” Credit Ratings On March 9, 2020, Moody’s Investor Services (“Moody’s), downgraded our current corporate credit rating to Caa1 from B2 and our current senior unsecured notes credit rating to Caa2 from B3. On April 16, 2020, Moody’s further downgraded both our corporate credit rating and our current senior unsecured notes credit rating to Ca. And, on April 27, 2020, Moody’s downgraded our corporate credit rating to D. The rating outlook from Moody’s is negative. Additionally, on April 16, 2020, S&P Global Ratings (“S&P”) downgraded our corporate and senior unsecured notes credit ratings to CC from CCC+ and our Credit Agreement rating to CC from B-. On April 24, 2020, S&P lowered our corporate credit rating and all issue-level credit ratings to D. Our rating outlook from S&P has been designated as not meaningful. Our current credit ratings are below investment grade and could raise our cost of financing. Consequently, we may not be able to issue additional debt in amounts and/or with terms that we consider to be reasonable. These ratings could limit our ability to pursue other business opportunities. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 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. Non-Income Tax and Related Claims We have received assessments related to, or otherwise have exposure to, non-income tax items such as sales-and-use tax, value-added tax, ad valorem tax, custom duties, and other similar taxes in various taxing jurisdictions. We have determined that we have a probable loss for these taxes and the related penalties and interest and, accordingly, have recorded a $12.7 million and $16.1 million liability at March 31, 2020 and December 31, 2019, respectively. We intend to defend these matters vigorously; however, the ultimate outcome of these assessments and exposures could result in additional taxes, interest and penalties for which the fully assessed amounts would have a material adverse 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. 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 such pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Personal Injury Claims Under our insurance policies, 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 $5.0 million for the first occurrence 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 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, 2020 our estimated liability for personal injury claims was $15.7 million, of which $6.2 million and $9.5 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. At December 31, 2019 our estimated liability for personal injury claims was $17.4 million, of which $6.4 million and $11.0 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 and volume of personal injuries claimed; • 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, 2020 in the aggregate amount of $32.9 million under certain customs, performance, tax and VAT bonds and letters of credit. Agreements relating to approximately $24.3 million of these tax and customs bonds can require collateral at any time, while the remaining agreements, aggregating $ 8.6 million, cannot require collateral except in events of default. During the quarter ended March 31, 2020, we issued a $ 6.0 million financial letter of credit as collateral in support of our outstanding surety bonds. In April 2020, we made cash collateral deposits of $ 17.5 million with respect to other bonds and letters of credit. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 11. 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, 2020, 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 where the services were performed. The following tables provide information about disaggregated revenue by country (in thousands): Three Months Ended March 31, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 104,900 $ 3,144 $ 108,044 Brazil 63,179 - 63,179 United Kingdom 32,599 3,245 35,844 Australia 17,188 4,915 22,103 Total $ 217,866 $ 11,304 $ 229,170 Three Months Ended March 31, 2019 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 138,632 $ 1,946 $ 140,578 Brazil 53,284 30 53,314 United Kingdom 24,609 1,907 26,516 Australia 10,172 2,962 13,134 Total $ 226,697 $ 6,845 $ 233,542 |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 12. Income Tax On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act allows a carryback of net operating losses generated in 2018, 2019 and 2020 to each of the five preceding taxable years. As a result of the carryback, we recognized a tax benefit of $9.7 million due to a partial release of a previously recognized valuation allowance and tax rate change. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Senior Notes and Potential Event of Default On April 16, 2020, we announced that we elected not to make the semiannual interest payment due in respect of our 5.70% Senior Notes due 2039 (the “Notes”), which was due on April 15, 2020. Under the terms of the governing indenture, we have a 30-day grace period to make the payment. Non-payment of the interest due on the due date was not an event of default but would become an event of default if the payment was not made within the 30-day grace period. During the grace period, we are not permitted to borrow additional amounts under our Credit Agreement. An event of default under the indenture governing the Notes would result in a cross-default under the Credit Agreement, whereupon the Notes and our borrowings under the Credit Agreement may then be subject to acceleration. The acceleration of the Notes or our borrowings under the Credit Agreement would result in a cross-default under the indentures governing our 3.45% Senior Notes due 2023, 7.875% Senior Notes due 2025 and 4.875% Senior Notes due 2043, whereupon such notes may then be subject to acceleration, subject to a 10-day cure period. We also announced on April 16, 2020 that we have retained the services of Lazard Frères & Co. LLC as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisor to assist our Board of Directors and management team in analyzing and evaluating the various alternatives with respect to our capital structure. Reduction in Force In April 2020, we initiated a plan to reduce the number of employees in our world-wide organization in an effort to lower operating costs and restructure our business. As a result, we announced and communicated a reduction in personnel in our corporate offices, warehouse facilities and certain of our international shorebase locations. Contract Termination In April 2020, we received a purported notice of termination by a subsidiary of Beach Energy Limited of its contract for the Ocean Onyx , which contract was scheduled to commence during the second quarter of 2020. We consider termination of the Ocean Onyx contract to be a triggering event for purposes of impairment testing, as the rig has no future contracts at this time, and we are currently preparing the rig for cold stacking. Based on our assumptions and analysis, we determined that the undiscounted probability-weighted cash flow for the Ocean Onyx was in excess of its carrying value. As a result, we concluded that the carrying value of the rig was not impaired. Termination of Services Agreement On April 24, 2020, our services agreement with Loews Corporation was terminated by mutual agreement. Under the services agreement, Loews had previously provided certain administrative and technical services, such as internal auditing services and advice and assistance with respect to obtaining insurance. We are in the process of replacing certain of these functions with services obtained through other third-party providers. Bankruptcy Filing On April 26, 2020, the Debtors commenced the Chapter 11 Cases. The Chapter 11 Cases are jointly administered under the caption In re Diamond Offshore Drilling, Inc., et al, Case No. 20-32307 The Debtors filed motions with the Bankruptcy Court seeking authorization to continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the United States Bankruptcy Code (the “Code”) and orders of the Bankruptcy Court. To ensure their ability to continue operating in the ordinary course of business, the Debtors have also filed with the Bankruptcy Court a variety of motions seeking “first day” relief, including authority to continue using their cash management system, pay employee wages and benefits and pay certain vendors and suppliers in the ordinary course of business (the “First Day Motions”). On April 27, 2020 the Bankruptcy Court approved the First Day Motions, certain of which were approved on an interim basis. A subsequent hearing to approve the First Day Motions granted on an interim basis is currently scheduled for May 27, 2020. Pursuant to the First Day Motions, and subject to certain terms and dollar limits included therein, the Debtors were authorized to continue to use their unrestricted cash on hand, as well as all cash generated from daily operations, which is being used to continue the Debtors’ operations without interruption during the course of their restructuring. Also pursuant to the First Day Motions, the Debtors received Bankruptcy Court authorization to, among other things and subject to the terms and conditions set forth in the applicable orders, pay certain pre-petition employee wages, salaries, health benefits and other employee obligations during their restructuring, pay certain claims relating to critical and other vendors, continue their cash management programs and insurance policies, as well as continue to honor their current customer programs. The Debtors are authorized under the Bankruptcy Code to pay post-petition expenses incurred in the ordinary course of business without seeking Bankruptcy Court approval. Until a plan of reorganization is approved and effective, the Debtors will continue to manage their properties and operate their businesses as “debtor s- in - possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Debtors filed the Chapter 11 Cases with approximately $434.9 million of unrestricted cash, which they will use to fund operations in the ordinary course and administrative costs during the Chapter 11 Cases. The filing of the Chapter 11 Cases constitutes an event of default that accelerated the Company’s obligations under the following debt instruments (collectively, the “Debt Instruments”): • 3.45 • 7.875 • 5.70 • 4.875 • the Credit Agreement, under which an aggregate of $442.0 million is outstanding, consisting of borrowings of $436.0 million and $6.0 million in the form of a letter of credit. The Debt Instruments provide that as a result of the filing of the Chapter 11 Cases, the principal and accrued interest due thereunder shall be immediately due and payable and have been presented as ”Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet at March 31, 2020 Credit Agreement As a result of the filing of the Chapter 11 Cases, we received notification on April 28, 2020 that the commitment under our Credit Agreement had been reduced from $950 million to approximately $442.0 million, representing the amount of borrowings outstanding plus the value of the letter of credit that had been issued under the Credit Agreement. |
General Information (Policies)
General Information (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 June 2016, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to measure credit losses of certain financial assets, including trade receivables, utilizing a We adopted ASU 2016-13 and its related amendments |
Asset Held For Sale | Asset Held for Sale We reported the Ocean Confidence |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Trade receivables $ 218,666 $ 199,572 Current contract assets (1) 3,223 6,314 Current contract liabilities (deferred revenue) (1) (23,662 ) (9,573 ) Noncurrent contract liabilities (deferred revenue) (1) (58,728 ) (38,531 ) (1) |
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, 2020 $ 6,314 Contract liabilities at January 1, 2020 (48,104 ) Net balance at January 1, 2020 (41,790 ) Decrease due to amortization of revenue included in the beginning contract liability balance 2,591 Increase due to cash received, excluding amounts recognized as revenue during the period (36,876 ) Increase due to revenue recognized during the period but contingent on future performance 160 Decrease due to transfer to receivables during the period (3,252 ) Net balance at March 31, 2020 $ (79,167 ) Contract assets at March 31, 2020 $ 3,223 Contract liabilities at March 31, 2020 (82,390 ) |
Summary of Specified Types Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of March 31, 2020 (in thousands): For the Years Ending December 31, 2020 (1) 2021 2022 Total Mobilization and contract preparation revenue $ 3,135 $ 2,683 $ 352 $ 6,170 Capital modification revenue 16,054 15,509 1,452 33,015 Blended rate revenue and other 31,249 8,165 — 39,414 Total $ 50,438 $ 26,357 $ 1,804 $ 78,599 (1) nine-month |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Credit Losses | Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): March 31, December 31, 2020 2019 Trade receivables $ 218,666 $ 199,572 Federal income tax receivables 38,574 38,574 Value added tax receivables 16,111 17,716 Related party receivables 80 166 Other 492 287 273,923 256,315 Allowance for credit losses (5,760 ) (5,459 ) Total $ 268,163 $ 250,856 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2020 2019 Deferred contract costs $ 31,956 $ 20,019 Rig spare parts and supplies 14,971 18,250 Prepaid taxes 13,877 12,475 Prepaid rig costs 3,897 2,990 Current contract assets 3,223 6,314 Prepaid insurance 1,940 2,892 Prepaid software costs 1,518 2,319 Other 5,387 3,399 Total $ 76,769 $ 68,658 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Rig operating expenses $ 45,231 $ 37,969 Interest payable 36,813 28,234 Payroll and benefits 28,713 42,494 Accrued capital project/upgrade costs 26,094 56,603 Deferred revenue 23,662 9,573 Current operating lease liability 20,482 20,030 Personal injury and other claims 6,484 7,074 Shorebase and administrative costs 4,374 5,275 Other 4,178 3,528 Total $ 196,031 $ 210,780 |
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, 2020 2019 Accrued but unpaid capital expenditures at period end $ 26,094 $ 29,902 Common stock withheld for payroll tax obligations (1) 324 844 Cash interest payments 19,785 19,688 Cash income taxes paid, net of (refunds): Foreign 7,142 8,700 State (14 ) (15 ) (1) Represents the cost of 85,131 shares and 81,480 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units during the three-month periods ended March 31, 2020 and 2019, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Balance Sheets at March 31, 2020 and 2019, respectively. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Securities Excluded from Computation of Diluted Loss Per Share | The following table sets forth the stock-based awards excluded from the computations of diluted loss per share (in thousands). Three Months Ended March 31, 2020 2019 Employee and director: Stock appreciation rights 918 1,022 Restricted stock units 912 1,027 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring and Nonrecurring Basis | Assets measured at fair value are summarized below (in thousands). March 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Three-Months Ended (1) Recurring fair value measurements: Money market funds $ 482,699 $ — $ — $ 482,699 Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ 175,400 $ 175,400 $ 774,028 (1) Represents the aggregate impairment charge recognized during the three months ended March 31, 2020 and corresponding book value as of March 31, 2020 of the four semisubmersible rigs, which were written down to their estimated fair values. See Note 4. December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Money market funds $ 135,300 $ — $ — $ 135,300 |
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, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 73.7 $ 249.6 $ 212.5 $ 249.6 7.875% Senior Notes due 2025 147.5 497.3 435.0 497.1 5.70% Senior Notes due 2039 77.5 497.3 292.5 497.3 4.875% Senior Notes due 2043 101.3 749.0 408.8 749.0 |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Drilling rigs and equipment $ 7,273,173 $ 8,004,489 Land and buildings 64,342 64,267 Office equipment and other 92,965 92,289 Cost 7,430,480 8,161,045 Less: accumulated depreciation (3,100,497 ) (3,008,217 ) Drilling and other property and equipment, net $ 4,329,983 $ 5,152,828 |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Information about Disaggregated Revenue by Country | The following tables provide information about disaggregated revenue by country (in thousands): Three Months Ended March 31, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 104,900 $ 3,144 $ 108,044 Brazil 63,179 - 63,179 United Kingdom 32,599 3,245 35,844 Australia 17,188 4,915 22,103 Total $ 217,866 $ 11,304 $ 229,170 Three Months Ended March 31, 2019 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 138,632 $ 1,946 $ 140,578 Brazil 53,284 30 53,314 United Kingdom 24,609 1,907 26,516 Australia 10,172 2,962 13,134 Total $ 226,697 $ 6,845 $ 233,542 |
General Information - Additiona
General Information - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | May 01, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||||
Asset held for sale | $ 1,000 | ||||
Gain (loss) on disposition of assets | $ 3,433 | $ (4,287) | |||
Semisubmersible Rig [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Gain (loss) on disposition of assets | $ 3,500 | ||||
Subsequent Event [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Outstanding common stock owned by loews corporation | 53.00% |
Going Concern - Additional Info
Going Concern - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Going Concern [Line Items] | ||
Net loss | $ (861,940) | $ (73,328) |
Loss on impairment of assets | 774,028 | |
Amount in senior notes and borrowings under revolving credit facility | 2,412,215 | |
950 Million Credit Agreement [Member] | ||
Going Concern [Line Items] | ||
Amount in senior notes and borrowings under revolving credit facility | 2,400,000 | |
Amount borrowed under revolving credit facility | $ 436,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Minimum [Member] | |
Revenue From Contract With Customers [Line Items] | |
Initial term of contract | 2 months |
Maximum [Member] | |
Revenue From Contract With Customers [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, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Trade receivables | $ 218,666 | $ 199,572 |
Current contract assets | 3,223 | 6,314 |
Current contract liabilities (deferred revenue) | (23,662) | (9,573) |
Noncurrent contract liabilities (deferred revenue) | $ (58,728) | $ (38,531) |
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, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract assets at January 1, 2020 | $ 6,314 |
Contract liabilities at January 1, 2020 | (48,104) |
Net balance at January 1, 2020 | (41,790) |
Decrease due to amortization of revenue included in the beginning contract liability balance | 2,591 |
Increase due to cash received, excluding amounts recognized as revenue during the period | (36,876) |
Increase due to revenue recognized during the period but contingent on future performance | 160 |
Decrease due to transfer to receivables during the period | (3,252) |
Net balance at March 31, 2020 | (79,167) |
Contract assets at March 31, 2020 | 3,223 |
Contract liabilities at March 31, 2020 | $ (82,390) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 78,599 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
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 | $ 50,438 |
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 | $ 26,357 |
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 | $ 1,804 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 6,170 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 3,135 |
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 | 2,683 |
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 | 352 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 33,015 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 16,054 |
Capital Modification 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 | 15,509 |
Capital Modification 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 | 1,452 |
Blended Rate Revenue and Other [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 39,414 |
Blended Rate Revenue and Other [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 31,249 |
Blended Rate Revenue and Other [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 | $ 8,165 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 78,599 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 6,170 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 33,015 |
Blended Rate Revenue and Other [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 39,414 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) (Parenthetical) | Mar. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
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: 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 |
Impairment of Assets - Addition
Impairment of Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)Rig | |
Schedule Of Asset Impairment Charges [Line Items] | |
Impairment of assets | $ | $ 774,028 |
2020 Impaired Rigs [Member] | |
Schedule Of Asset Impairment Charges [Line Items] | |
Number of rigs evaluated for impairment | Rig | 5 |
Number Of Rigs Impaired During Period | Rig | 4 |
Impairment of assets | $ | $ 774,000 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade receivables | $ 218,666 | $ 199,572 |
Federal income tax receivables | 38,574 | 38,574 |
Value added tax receivables | 16,111 | 17,716 |
Related party receivables | 80 | 166 |
Other | 492 | 287 |
Receivables Gross Current, Total | 273,923 | 256,315 |
Allowance for credit losses | (5,760) | (5,459) |
Accounts receivable, net | $ 268,163 | $ 250,856 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred contract costs | $ 31,956 | $ 20,019 |
Rig spare parts and supplies | 14,971 | 18,250 |
Prepaid taxes | 13,877 | 12,475 |
Prepaid rig costs | 3,897 | 2,990 |
Current contract assets | 3,223 | 6,314 |
Prepaid insurance | 1,940 | 2,892 |
Prepaid software costs | 1,518 | 2,319 |
Other | 5,387 | 3,399 |
Total | $ 76,769 | $ 68,658 |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Rig operating expenses | $ 45,231 | $ 37,969 |
Interest payable | 36,813 | 28,234 |
Payroll and benefits | 28,713 | 42,494 |
Accrued capital project/upgrade costs | 26,094 | 56,603 |
Deferred revenue | 23,662 | 9,573 |
Current operating lease liability | 20,482 | 20,030 |
Personal injury and other claims | 6,484 | 7,074 |
Shorebase and administrative costs | 4,374 | 5,275 |
Other | 4,178 | 3,528 |
Total | $ 196,031 | $ 210,780 |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Accrued but unpaid capital expenditures at period end | $ 26,094 | $ 29,902 |
Common stock withheld for payroll tax obligations | 324 | 844 |
Cash interest payments | 19,785 | 19,688 |
Foreign [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | 7,142 | 8,700 |
State [Member] | ||
Cash income taxes paid, net of (refunds): | ||
Cash income taxes paid, net of refunds | $ (14) | $ (15) |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Investing and Financing Activities (Parenthetical) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Number of shares of common stock withheld | 85,131 | 81,480 |
Loss Per Share - Securities Exc
Loss Per Share - Securities Excluded from Computations of Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units [Member] | ||
Employee and director: | ||
Securities excluded from computation of diluted loss per share | 912 | 1,027 |
Stock Appreciation Rights [Member] | ||
Employee and director: | ||
Securities excluded from computation of diluted loss per share | 918 | 1,022 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trade receivables past due | $ 6,900 | |
Trade receivables reserved for previous years | 5,500 | |
Trade receivables, less than 90 Days past due | 1,400 | |
Allowance for credit losses | $ 5,760 | $ 5,459 |
Measurement period for determining fair value of debt instruments | 10 days | |
ASU 2016-13 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimate of credit losses | $ 300 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of assets | $ 774,028 | |
Nonrecurring Fair Value Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired assets | 175,400 | |
Impairment of assets | 774,028 | |
Money Market Funds [Member] | Fair Value Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 482,699 | $ 135,300 |
Level 1 [Member] | Money Market Funds [Member] | Fair Value Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total short-term investments | 482,699 | $ 135,300 |
Level 3 [Member] | Nonrecurring Fair Value Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired assets | $ 175,400 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2020Rig | |
Fair Value Disclosures [Abstract] | |
Number of semisubmersible rigs | 4 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 73.7 | $ 212.5 |
Carrying Value | 249.6 | 249.6 |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 147.5 | 435 |
Carrying Value | 497.3 | 497.1 |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 77.5 | 292.5 |
Carrying Value | 497.3 | 497.3 |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 101.3 | 408.8 |
Carrying Value | $ 749 | $ 749 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Parenthetical) (Detail) | Mar. 31, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 7,430,480 | $ 8,161,045 |
Less: accumulated depreciation | (3,100,497) | (3,008,217) |
Drilling and other property and equipment, net | 4,329,983 | 5,152,828 |
Drilling Rigs and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 7,273,173 | 8,004,489 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 64,342 | 64,267 |
Office Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 92,965 | $ 92,289 |
Drilling and Other Property a_4
Drilling and Other Property and Equipment - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)Rig | |
Property, Plant and Equipment [Line Items] | |
Impairment charge of assets | $ 774,028 |
2020 Impaired Rigs [Member] | |
Property, Plant and Equipment [Line Items] | |
Impairment charge of assets | $ 774,000 |
Number Of Rigs Impaired During Period | Rig | 4 |
Credit Agreements and Credit _2
Credit Agreements and Credit Ratings - Additional Information (Detail) - USD ($) | Apr. 16, 2020 | Mar. 17, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Apr. 28, 2020 | Apr. 26, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount borrowed | $ 436,000,000 | ||||||
Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit issued | $ 436,000,000 | ||||||
Credit Ratings | On March 9, 2020, Moody’s Investor Services (“Moody’s), downgraded our current corporate credit rating to Caa1 from B2 and our current senior unsecured notes credit rating to Caa2 from B3. On April 16, 2020, Moody’s further downgraded both our corporate credit rating and our current senior unsecured notes credit rating to Ca. And, on April 27, 2020, Moody’s downgraded our corporate credit rating to D. The rating outlook from Moody’s is negative. Additionally, on April 16, 2020, S&P Global Ratings (“S&P”) downgraded our corporate and senior unsecured notes credit ratings to CC from CCC+ and our Credit Agreement rating to CC from B-. On April 24, 2020, S&P lowered our corporate credit rating and all issue-level credit ratings to D. Our rating outlook from S&P has been designated as not meaningful. Our current credit ratings are below investment grade and could raise our cost of financing. Consequently, we may not be able to issue additional debt in amounts and/or with terms that we consider to be reasonable. These ratings could limit our ability to pursue other business opportunities. | ||||||
Amended Credit Agreement [Member] | Credit facility Mature on October 22, 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Termination of credit agreement | $ 225,000,000 | ||||||
Credit facility, scheduled maturity date | Oct. 22, 2020 | ||||||
Write-off of deferred arrangement fees | $ 500,000 | ||||||
950 Million Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount borrowed | $ 436,000,000 | ||||||
Amount available for general purposes | $ 950,000,000 | $ 950,000,000 | $ 442,000,000 | ||||
Credit facility, term | 5 years | ||||||
Weighted average interest rate on borrowings | 5.32% | 5.32% | |||||
Line of credit issued | $ 436,000,000 | $ 436,000,000 | |||||
950 Million Credit Agreement [Member] | Financial Letter of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit issued | $ 6,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | |
Contingencies And Commitments [Line Items] | |||
Estimated sales tax and related penalties and interest | $ 12,700,000 | $ 16,100,000 | |
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 | 32,900,000 | ||
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 | 24,300,000 | ||
Uncollateralized Contingent Liability Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 8,600,000 | ||
Collateralized Contingent Liability Under Financial Letters of Credit and Surety Bond [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 6,000,000 | ||
Cash Collateralized Contingent Liability Under Letters of Credit and Bonds [Member] | Subsequent Event [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | $ 17,500,000 | ||
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 | 15,700,000 | 17,400,000 | |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 6,200,000 | 6,400,000 | |
Personal Injury Claims [Member] | Other Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | $ 9,500,000 | $ 11,000,000 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020SegmentCountry | |
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 Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 229,170 | $ 233,542 |
Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 217,866 | 226,697 |
Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 11,304 | 6,845 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 108,044 | 140,578 |
United States [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 104,900 | 138,632 |
United States [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3,144 | 1,946 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 63,179 | 53,314 |
Brazil [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 63,179 | 53,284 |
Brazil [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 30 | |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 35,844 | 26,516 |
United Kingdom [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 32,599 | 24,609 |
United Kingdom [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3,245 | 1,907 |
Australia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 22,103 | 13,134 |
Australia [Member] | Contract Drilling [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 17,188 | 10,172 |
Australia [Member] | Reimbursable Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 4,915 | $ 2,962 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) $ in Millions | Mar. 27, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Income tax benefit from carryback of net operating losses | $ (9.7) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Apr. 26, 2020 | Apr. 16, 2020 | Apr. 30, 2020 | Apr. 28, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of credit | $ 436,000,000 | |||||
Amount available for general purposes | $ 442,000,000 | $ 950,000,000 | ||||
5.70% Senior Notes due 2039 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 5.70% | 5.70% | ||||
3.45% Senior Notes due 2023 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 3.45% | 3.45% | ||||
7.875% Senior Notes due 2025 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 7.875% | 7.875% | ||||
4.875% Senior Notes due 2043 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 4.875% | 4.875% | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Expected incremental costs for severance and outplacement services | $ 7,000,000 | |||||
Unrestricted Cash | $ 434,900,000 | |||||
Credit agreement aggregate amount outstanding | 442,000,000 | |||||
Line of credit | 436,000,000 | |||||
Subsequent Event [Member] | Credit Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Letters of credit | $ 6,000,000 | |||||
Subsequent Event [Member] | 5.70% Senior Notes due 2039 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Maturity date | Apr. 15, 2020 | |||||
Interest rate of senior notes | 5.70% | |||||
Percentage of senior notes due | 5.70% | |||||
Aggregate principal amount outstanding | $ 500,000,000 | |||||
Subsequent Event [Member] | 3.45% Senior Notes due 2023 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 3.45% | |||||
Percentage of senior notes due | 3.45% | |||||
Aggregate principal amount outstanding | $ 250,000,000 | |||||
Subsequent Event [Member] | 7.875% Senior Notes due 2025 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 7.875% | |||||
Percentage of senior notes due | 7.875% | |||||
Aggregate principal amount outstanding | $ 500,000,000 | |||||
Subsequent Event [Member] | 4.875% Senior Notes due 2043 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate of senior notes | 4.875% | |||||
Percentage of senior notes due | 4.875% | |||||
Aggregate principal amount outstanding | $ 750,000,000 |