Supplemental Financial Information

Consolidated Balance Sheet Information

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



	June 30, 2018			December 31, 2017
Trade	$	338.6		$	335.4
Other	15.1			33.6
	353.7			369.0
Allowance for doubtful accounts	(21.0		)	(23.6		)
	$	332.7		$	345.4

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



	June 30, 2018		December 31, 2017
Inventory	$	274.8	$	278.8
Prepaid taxes	44.7		43.5
Deferred costs	38.2		29.7
Prepaid expenses	13.3		14.2
Assets held-for-sale	3.4		1.5
Derivative asset	1.3		6.8
Other	13.9		6.7
	$	389.6	$	381.2

Other assets consisted of the following (in millions):



	June 30, 2018		December 31, 2017
Supplemental executive retirement plan assets	$	30.5	$	30.9
Deferred costs	24.8		37.4
Deferred tax assets	15.5		38.8
Intangible assets	8.2		15.7
Other	14.9		17.4
	$	93.9	$	140.2

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



	June 30, 2018		December 31, 2017
Accrued interest	$	101.6	$	83.1
Personnel costs	81.7		112.0
Deferred revenue	76.6		71.9
Taxes	50.8		46.4
Derivative liabilities	6.7		0.4
Other	14.1		12.1
	$	331.5	$	325.9

Other liabilities consisted of the following (in millions):



	June 30, 2018		December 31, 2017
Unrecognized tax benefits (inclusive of interest and penalties)	$	180.7	$	178.0
Intangible liabilities	55.1		59.6
Supplemental executive retirement plan liabilities	31.5		32.0
Personnel costs	24.1		18.1
Deferred revenue	23.2		51.2
Deferred tax liabilities	16.3		18.5
Deferred rent	13.0		17.1
Other	18.1		12.2
	$	362.0	$	386.7

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



	June 30, 2018			December 31, 2017
Derivative instruments	$	14.7		$	22.5
Currency translation adjustment	7.5			7.8
Other	(1.7		)	(1.7		)
	$	20.5		$	28.6

Concentration of Risk

We are exposed to credit risk related 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 our 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 almost all of 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 5 - Derivative Instruments" for additional information on our derivatives.

Consolidated revenues by customer for the three-month and six-month periods ended June 30, 2018 and 2017 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Total⁽¹⁾	13	%	22	%	14	%	22	%
Petrobras⁽¹⁾	10	%	11	%	11	%	10	%
BP⁽²⁾	5	%	15	%	8	%	15	%
Other	72	%	52	%	67	%	53	%
	100	%	100	%	100	%	100	%


⁽¹⁾	During the three-month and six-month periods ended June 30, 2018 and 2017, all revenues were attributable to our Floaters segment.

⁽²⁾

During the three-month periods ended June 30, 2018 and 2017, 28% of the revenues provided by BP were attributable to our Jackups segment and 79% were attributable to our Floaters segment, respectively, and the remaining revenues were attributable to our Other segment. During the six-month period ended June 30, 2018, 43% of the revenues provided by BP were attributable to our Floaters segment, 15% of the revenues were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the six-month period ended June 30, 2017, 79% of the revenues provided by BP were attributable to our Floaters segment and the remaining revenues were attributable to our Other segment.

Consolidated revenues by region for the three-month and six-month periods ended June 30, 2018 and 2017 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Australia⁽¹⁾	$	80.4	$	55.3	$	132.6	$	109.9
Angola⁽²⁾	72.2		115.9		133.3		237.6
U.S. Gulf of Mexico⁽³⁾	59.5		33.0		113.1		77.3
United Kingdom⁽⁴⁾	53.7		36.7		100.3		67.9
Brazil⁽⁵⁾	46.1		48.7		96.4		96.5
Egypt⁽⁵⁾	—		53.4		31.2		106.6
Other	146.6		114.5		268.6		232.8
	$	458.5	$	457.5	$	875.5	$	928.6

⁽¹⁾

During the three-month periods ended June 30, 2018 and 2017, 95% and 78% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2018 and 2017, 97% and 78% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

⁽²⁾

During the three-month periods ended June 30, 2018 and 2017, 84% and 87% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2018 and 2017, 90% and 86% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

⁽³⁾

During the three-month period ended June 30, 2018, 36% of the revenues earned in the U.S. Gulf of Mexico, were attributable to our Floaters segment, 39% were attributable to our Jackups segment, and the remaining revenues were attributable to our Other segment. During the three-month period ended June 30, 2017, 10% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 46% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the six-month period ended June 30, 2018, both the Jackups and Floaters segments earned 37% of revenues in the U.S. Gulf of Mexico and the remaining revenues were attributable to our Other segment. During the six-month period ended June 30, 2017, 37% and 25% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Jackups segment and Floaters segment, respectively, and the remaining revenues were attributable to our Other segment.


⁽⁴⁾	During the three-month and six-month periods ended June 30, 2018 and 2017, all revenues earned in the United Kingdom were attributable to our Jackups segment.


⁽⁵⁾	During the three-month and six-month periods ended June 30, 2018 and 2017, all revenues earned in Brazil and Egypt were attributable to our Floaters segment.