14. SUPPLEMENTAL FINANCIAL INFORMATION

Consolidated Balance Sheet Information

Accounts receivable, net, as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016			2015
Trade	$	358.4		$	595.0
Other	24.5			16.3
	382.9			611.3
Allowance for doubtful accounts	(21.9		)	(29.3		)
	$	361.0		$	582.0

Other current assets as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016		2015
Inventory	$	225.2	$	235.3
Deferred costs	32.4		52.1
Prepaid taxes	30.7		73.5
Prepaid expenses	7.9		20.5
Other	19.8		20.4
	$	316.0	$	401.8

Other assets, net, as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016		2015
Deferred tax assets	$	69.3	$	94.8
Deferred costs	35.7		55.8
Prepaid taxes on intercompany transfers of property	33.0		37.1
Supplemental executive retirement plan assets	27.7		33.1
Other	10.2		16.8
	$	175.9	$	237.6

Accrued liabilities and other as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016		2015
Personnel costs	$	124.0	$	161.6
Deferred revenue	116.7		197.2
Accrued interest	71.7		88.4
Taxes	40.7		70.8
Derivative liabilities	12.7		21.6
Other	10.8		11.3
	$	376.6	$	550.9

Other liabilities as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016		2015
Unrecognized tax benefits (inclusive of interest and penalties)	$	142.9	$	149.7
Deferred revenue	120.9		218.6
Supplemental executive retirement plan liabilities	28.9		34.4
Personnel costs	13.5		17.7
Other	16.3		28.8
	$	322.5	$	449.2

Accumulated other comprehensive income as of December 31, 2016 and 2015 consisted of the following (in millions):



	2016			2015
Derivative instruments	$	13.6		$	6.6
Currency translation adjustment	7.6			7.8
Other	(2.2		)	(1.9		)
	$	19.0		$	12.5

Consolidated Statement of Operations Information

Repair and maintenance expense related to continuing operations for each of the years in the three-year period ended December 31, 2016 was as follows (in millions):



	2016		2015		2014
Repair and maintenance expense	$	151.1	$	270.1	$	357.2

Consolidated Statement of Cash Flows Information

Net cash provided by operating activities of continuing operations attributable to the net change in operating assets and liabilities for each of the years in the three-year period ended December 31, 2016 was as follows (in millions):



	2016			2015			2014
(Decrease) increase in liabilities	$	(316.6	)	$	(379.2	)	$	208.2
Decrease (increase) in accounts receivable	222.3			269.5			(38.5		)
Decrease (increase) in other assets	86.1			25.7			(76.4		)
	$	(8.2	)	$	(84.0	)	$	93.3

During 2016, the net change in operating assets and liabilities increased by $75.8 million as compared to the prior year. The net change during 2016 was primarily due to a decline in liabilities related to lower operating levels across the fleet and the amortization of deferred revenue, mostly offset by a decline in accounts receivable due to lower revenues from contract drilling services and a decline in prepaid taxes and other assets due to collections during the year and amortization, respectively.

During 2015, the net change in operating assets and liabilities declined by $177.3 million as compared to the prior year. The net change during 2015 was primarily due to a decline in liabilities related to lower operating levels across the fleet and the amortization of deferred revenue, partially offset by a decline in accounts receivable due to lower revenues from contract drilling services.

Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2016 was as follows (in millions):



	2016		2015		2014
Interest, net of amounts capitalized	$	264.8	$	249.3	$	170.0
Income taxes	56.4		97.3		218.2

Capitalized interest totaled $45.7 million, $87.4 million and $78.2 million during the years ended December 31, 2016, 2015 and 2014, respectively. Capital expenditure accruals totaling $11.5 million, $60.9 million and $137.2 million for the years ended December 31, 2016, 2015 and 2014, respectively, were excluded from investing activities in our consolidated statements of cash flows.

Amortization of assets and liabilities, net, included the amortization of debt premiums, intangibles, deferred charges for income taxes incurred on intercompany transfers of drilling rigs and certain other deferred costs.

Concentration of Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents and investments and our use of derivatives in connection with the management of foreign currency exchange rate risk. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which generally have been within our expectations. During 2014 and 2015, we insured certain receivables deemed to have a higher credit risk. We mitigate our credit risk relating to cash and investments by focusing on diversification and quality of instruments. Cash equivalents and short-term investments consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents and short-term investments is maintained at several well-capitalized financial institutions, and we monitor the financial condition of those financial institutions.

We mitigate our credit risk relating to counterparties of our derivatives through a variety of techniques, including transacting with multiple, high-quality financial institutions, thereby limiting our exposure to individual counterparties and by entering into ISDA Master Agreements, which include provisions for a legally enforceable master netting agreement, with our derivative counterparties. See "Note 5 - Derivative Instruments" for additional information on our derivative activity.

The terms of the ISDA agreements may also include credit support requirements, cross default provisions, termination events or set-off provisions. Legally enforceable master netting agreements reduce credit risk by providing protection in bankruptcy in certain circumstances and generally permitting the closeout and netting of transactions with the same counterparty upon the occurrence of certain events.

Consolidated revenues by customer for the years ended December 31, 2016, 2015 and 2014 were as follows:



	2016		2015		2014
Total⁽¹⁾	13	%	9	%	9	%
BP ⁽²⁾	12	%	18	%	16	%
Petrobras⁽³⁾	9	%	14	%	9	%
Other	66	%	59	%	66	%
	100	%	100	%	100	%


⁽¹⁾	For the years ended December 31, 2016, 2015 and 2014, all Total revenues were attributable to the Floater segment.


⁽²⁾	For the year ended December 31, 2016, 76%, 17% and 7% of the revenues provided by BP were attributable to our Floaters, Other and Jackups segments, respectively. For the years ended December 31, 2015 and 2014, 81% and 80% of the revenues provided by BP, respectively, were attributable to our Floaters segment and the remaining revenues were attributable to our Other segment.

For the year ended December 31, 2015, excluding the impact of ENSCO DS-4 lump-sum termination payments of $110.6 million, revenues from BP represented 15% of total revenue.


⁽³⁾	For the years ended December 31, 2016, 2015 and 2014, all Petrobras revenues were attributable to our Floaters segment.

For purposes of our geographic disclosure, we attribute revenues to the geographic location where such revenues are earned. Consolidated revenues by region for the years ended December 31, 2016, 2015 and 2014 were as follows (in millions):



	2016		2015		2014
Angola⁽¹⁾	$	552.1	$	586.5	$	607.9
U.S. Gulf of Mexico⁽²⁾	531.7		1,151.5		1,712.4
Brazil⁽³⁾	298.0		468.5		459.1
United Kingdom⁽⁴⁾	246.2		400.7		406.2
Other	1,148.4		1,456.2		1,378.9
	$	2,776.4	$	4,063.4	$	4,564.5


⁽¹⁾	For the years ended December 31, 2016, 2015 and 2014, 87%, 88% and 100% of the revenues earned in Angola, respectively, were attributable to our Floaters segment with the remaining revenues attributable to our Jackups segment.


⁽²⁾	For the years ended December 31, 2016, 2015 and 2014, 82%, 86% and 79% of the revenues earned in the U.S. Gulf of Mexico, respectively, were attributable to our Floaters segment. For the years ended December 31, 2016, 2015 and 2014, 7%, 9% and 18% of revenues were attributable to our Jackups segment.


⁽³⁾	For the years ended December 31, 2016, 2015 and 2014, all revenues were attributable to our Floaters segment.


⁽⁴⁾	For the years ended December 31, 2016, 2015 and 2014, all revenues were attributable to our Jackups segment.