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Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
DISCONTINUED OPERATIONS

We sold the following rigs during the three-year period ended December 31, 2014 (in millions):
Rig(3)
 
Date of Rig Sale
 
Segment(1)
 
Net Proceeds
 
Net Book Value(2)
 
Pre-tax Gain/(Loss)
ENSCO 5000
 
December 2014
 
Floaters
 
$
1.3

 
$
.5

 
$
.8

ENSCO 93
 
September 2014
 
Jackups
 
51.7

 
52.9

 
(1.2
)
ENSCO 85
 
April 2014
 
Jackups
 
64.4

 
54.1

 
10.3

ENSCO 69 & Pride Wisconsin
 
January 2014
 
Jackups
 
32.2

 
8.6

 
23.6

Pride Pennsylvania
 
March 2013
 
Jackups
 
15.5

 
15.7

 
(.2
)
ENSCO 5003
 
December 2012
 
Floaters
 
68.2

 
89.4

 
(21.2
)
Pride Hawaii
 
October 2012
 
Jackups
 
18.8

 
16.8

 
2.0

ENSCO I
 
September 2012
 
Other
 
4.5

 
12.3

 
(7.8
)
ENSCO 61
 
June 2012
 
Jackups
 
31.7

 
19.6

 
12.1

ENSCO 59
 
May 2012
 
Jackups
 
22.8

 
21.9

 
.9

 
 
 
 
 
 
$
311.1

 
$
291.8

 
$
19.3

(1) The rigs' operating results were reclassified to discontinued operations in our consolidated statements of operations for each of the years in the three-year period ended December 31, 2014 and were previously included within the operating segment noted in the above table.
(2) Includes the rig's net book value as well as inventory and other assets on the date of the sale.
(3) In September 2014, we sold jackup rigs ENSCO 83, ENSCO 89, ENSCO 93 and ENSCO 98, all of which are contracted to Pemex. As described below, the loss on sale and operating results of ENSCO 93 were included in (loss) income from discontinued operations, net in our consolidated statement of operations for the three-year period ended December 31, 2014.
    
During 2014, management committed to a plan to sell six floaters and two jackups. ENSCO 5000, ENSCO 5001, ENSCO 5002, ENSCO 6000, ENSCO 7500, ENSCO DS-2, ENSCO 58 and ENSCO 90 were removed from our portfolio of rigs marketed for contract drilling services. These rigs were written down to fair value, less costs to sell. We recorded a non-cash loss on impairment totaling $1.2 billion, net of tax benefits of $83.5 million, during the year ended December 31, 2014. The impairment charge was included in (loss) income from discontinued operations, net in our consolidated statement of operations for the year ended December 31, 2014.

We completed the sale of ENSCO 5000 for net proceeds of $1.3 million in December 2014. The remaining five floaters and two jackups are being actively marketed for sale and were classified as "held for sale" on our December 31, 2014 consolidated balance sheet.

The operating results from these rigs were included in (loss) income from discontinued operations, net in our consolidated statement of operations for the three-year period ended December 31, 2014.

During 2014, we sold ENSCO 93, a jackup contracted to Pemex. In connection with this sale, we executed a charter agreement with the purchaser to continue operating the rig for the remainder of the Pemex contract, which had an anticipated completion date in late 2015. Based on market developments during the fourth quarter, we now expect that the ENSCO 93 charter agreement will terminate prior to September 30, 2015. As a result, the loss on sale of $1.2 million and ENSCO 93 operating results were reclassified to (loss) income from discontinued operations, net in our consolidated statement of operations for the three-year period ended December 31, 2014. Net proceeds from the sale of $51.7 million were included in investing activities of discontinued operations in our consolidated statement of cash flows for the year ended December 31, 2014. See "Note 12 - Sale-leaseback" for additional information.
    
During 2014, we sold ENSCO 85 for net proceeds of $64.4 million and ENSCO 69 and Pride Wisconsin for net proceeds of $32.2 million. The operating results of these rigs were included in (loss) income from discontinued operations, net in our consolidated statement of operations for the three-year period ended December 31, 2014. The net proceeds from the sale for ENSCO 69 and Pride Wisconsin were received in December 2013 and included in investing activities of discontinued operations in our consolidated statement of cash flows for the year ended December 31, 2013.

During 2012, we classified jackup rig Pride Pennsylvania as held for sale, and the rig was written down to fair value less estimated cost to sell. We recognized a $2.5 million loss for assets classified as held for sale during the year ended December 31, 2012.

The following table summarizes (loss) income from discontinued operations for each of the years in the three-year period ended December 31, 2014 (in millions):
 
 
2014
 
2013
 
2012
Revenues
 
$
325.0

 
$
596.4

 
$
668.6

Operating expenses
 
372.0

 
577.6

 
544.3

Operating (loss) income
 
(47.0
)
 
18.8

 
124.3

Other income
 
—

 
.3

 
1.3

Income tax expense
 
(30.7
)
 
(20.2
)
 
(8.5
)
Loss on impairment, net
 
(1,158.8
)
 
—

 
—

Gain (loss) on disposal of discontinued operations, net
 
37.3

 
(1.1
)
 
(16.5
)
(Loss) income from discontinued operations
 
$
(1,199.2
)
 
$
(2.2
)
 
$
100.6



Debt and interest expense are not allocated to our discontinued operations.

During 2008, ENSCO 74 was lost as a result of Hurricane Ike in the U.S. Gulf of Mexico. The owner of a pipeline filed claims alleging that ENSCO 74 caused the pipeline to rupture during Hurricane Ike. We incurred $3.6 million in professional fees in connection with this matter, which we applied against our $10.0 million per occurrence deductible under our liability insurance policy.

In February 2014, we reached an agreement with the owner of the pipeline to settle the claims for $9.6 million. Accordingly, we recorded a $6.4 million charge for our remaining obligation under our liability insurance policy in loss from discontinued operations in our consolidated statement of operations for the year ended December 31, 2013. The remaining $3.2 million was settled by our underwriters. See "Note 11 - Commitments and Contingencies" for additional information on the ENSCO 74 loss.