Supplemental Financial Information

Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):



	September 30, 2017			December 31, 2016
Trade	$	338.6		$	358.4
Other	31.2			24.5
	369.8			382.9
Allowance for doubtful accounts	(20.8		)	(21.9		)
	$	349.0		$	361.0

Other current assets consisted of the following (in millions):



	September 30, 2017		December 31, 2016
Inventory	$	219.7	$	225.2
Prepaid taxes	35.8		30.7
Deferred costs	31.4		32.4
Prepaid expenses	14.1		7.9
Other	17.3		19.8
	$	318.3	$	316.0

Other assets, net, consisted of the following (in millions):



	September 30, 2017		December 31, 2016
Deferred tax assets	$	54.7	$	69.3
Deferred costs	30.8		35.7
Supplemental executive retirement plan assets	30.0		27.7
Prepaid taxes on intercompany transfers of property	—		33.0
Other	9.5		10.2
	$	125.0	$	175.9

Accrued liabilities and other consisted of the following (in millions):



	September 30, 2017		December 31, 2016
Personnel costs	$	95.2	$	124.0
Deferred revenue	88.0		116.7
Accrued interest	70.6		71.7
Taxes	36.9		40.7
Derivative liabilities	1.8		12.7
Other	8.3		10.8
	$	300.8	$	376.6

Other liabilities consisted of the following (in millions):



	September 30, 2017		December 31, 2016
Unrecognized tax benefits (inclusive of interest and penalties)	$	144.2	$	142.9
Deferred revenue	65.5		120.9
Supplemental executive retirement plan liabilities	31.2		28.9
Personnel costs	14.9		13.5
Other	23.4		16.3
	$	279.2	$	322.5

Accumulated other comprehensive income consisted of the following (in millions):



	September 30, 2017			December 31, 2016
Derivative instruments	$	22.4		$	13.6
Currency translation adjustment	7.8			7.6
Other	(1.6		)	(2.2		)
	$	28.6		$	19.0

Concentration of Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents, our short-term 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 management's expectations. We mitigate our credit risk relating to cash and cash equivalents by focusing on diversification and quality of instruments. Cash equivalents consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents 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 derivative counterparties through a variety of techniques, including transacting with multiple, high-quality financial institutions, thereby limiting our exposure to individual counterparties and by entering into International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements, which include provisions for a legally enforceable master netting agreement, with our derivative counterparties. 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. See "Note 4 - Derivative Instruments" for additional information on our derivatives.

Consolidated revenues by customer for the three-month and nine-month periods ended September 30, 2017 and 2016 were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total⁽¹⁾	24	%	23	%	23	%	16	%
BP ⁽²⁾	15	%	13	%	15	%	12	%
Petrobras⁽¹⁾	11	%	9	%	11	%	11	%
ConocoPhillips⁽³⁾	3	%	2	%	2	%	12	%
Other	47	%	53	%	49	%	49	%
	100	%	100	%	100	%	100	%


⁽¹⁾	During the three-month and nine-month periods ended September 30, 2017 and 2016, all revenues were attributable to our Floater segment.

⁽²⁾

During the three-month periods ended September 30, 2017 and 2016, 78% and 73% of the revenues provided by BP, respectively, were attributable to our Floaters segment and no revenue was attributable to our Jackups segment. During the nine-month periods ended September 30, 2017 and 2016, 78% and 75% of the revenues provided by BP, respectively, were attributable to our Floaters segment and no revenue was attributable to our Jackups segment.


⁽³⁾	During the nine-month period ended September 30, 2016, excluding the impact of the lump-sum termination payment of $185.0 million for ENSCO DS-9, revenues from ConocoPhillips represented 3% of our consolidated revenues.

Consolidated revenues by region for the three-month and nine-month periods ended September 30, 2017 and 2016 were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Angola⁽¹⁾	$	118.9	$	142.7	$	356.5	$	411.3
Egypt⁽²⁾	53.8		50.5		160.4		87.0
Brazil⁽²⁾	51.1		48.6		147.6		251.3
United Kingdom⁽³⁾	49.1		60.5		117.0		204.0
Australia⁽⁴⁾	48.7		44.6		158.6		169.4
U.S. Gulf of Mexico⁽⁵⁾⁽⁶⁾	34.9		33.6		112.2		498.3
Other	103.7		167.7		336.5		650.5
	$	460.2	$	548.2	$	1,388.8	$	2,271.8


⁽¹⁾	During the three-month periods ended September 30, 2017 and 2016, 85% and 87% of the revenues earned in Angola, respectively, were attributable to our Floaters segment. During the nine-month periods ended September 30, 2017 and 2016, 86% and 87% of the revenues earned in Angola, respectively, were attributable to our Floaters segment.


⁽²⁾	During the three-month and nine-month periods ended September 30, 2017 and 2016, all revenues were attributable to our Floaters segment.


⁽³⁾	During the three-month and nine-month periods ended September 30, 2017 and 2016, all revenues were attributable to our Jackups segment.


⁽⁴⁾	During the three-month and nine-month periods ended September 30, 2017, 92% and 83% of the revenues earned in Australia were attributable to our Floaters segment. For the three-month and nine-month periods ended September 30, 2016, all revenues were attributable to our Floaters segment.

⁽⁵⁾

During the three-month periods ended September 30, 2017 and 2016, 21% and 41% of the revenues earned, respectively, were attributable to our Floaters segment and 35% and 14% of the revenues earned, respectively, were attributable to our Jackups segment. During the nine-month period ended September 30, 2017 and 2016, 24% and 86% of the revenues earned, respectively, were attributable to our Floaters segment and 37% and 5% earned, respectively, were attributable to our Jackups segment.


⁽⁶⁾	Revenue recognized during the nine-month period ended September 30, 2016 related to the U.S. Gulf of Mexico included termination fees totaling $205.0 million as discussed in "Note 1 - Unaudited Condensed Consolidated Financial Statements." ENSCO DS-9 termination revenues were attributed to the U.S. Gulf of Mexico as the related drilling contract was intended for operations in that region.