Supplemental Financial Information

Consolidated Balance Sheet Information

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



	September 30, 2018			December 31, 2017
Trade	$	334.7		$	335.4
Other	17.7			33.6
	352.4			369.0
Allowance for doubtful accounts	(3.9		)	(23.6		)
	$	348.5		$	345.4

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



	September 30, 2018		December 31, 2017
Inventory	$	270.7	$	278.8
Prepaid taxes	70.2		43.5
Deferred costs	29.7		29.7
Prepaid expenses	19.5		14.2
Derivative asset	0.4		6.8
Other	13.5		8.2
	$	404.0	$	381.2

Other assets consisted of the following (in millions):



	September 30, 2018		December 31, 2017
Deferred tax assets	$	33.1	$	38.8
Supplemental executive retirement plan assets	30.5		30.9
Deferred costs	21.1		37.4
Intangible assets	5.4		15.7
Other	14.4		17.4
	$	104.5	$	140.2

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



	September 30, 2018		December 31, 2017
Personnel costs	$	80.9	$	112.0
Accrued interest	78.1		83.1
Deferred revenue	69.0		71.9
Taxes	46.8		46.4
Derivative liabilities	8.8		0.4
Other	26.4		12.1
	$	310.0	$	325.9

Other liabilities consisted of the following (in millions):



	September 30, 2018		December 31, 2017
Unrecognized tax benefits (inclusive of interest and penalties)	$	182.8	$	178.0
Deferred tax liabilities	62.7		18.5
Intangible liabilities	54.3		59.6
Supplemental executive retirement plan liabilities	32.1		32.0
Personnel costs	24.8		18.1
Deferred revenue	13.4		51.2
Deferred rent	12.1		17.1
Other	7.8		12.2
	$	390.0	$	386.7

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



	September 30, 2018			December 31, 2017
Derivative instruments	$	13.5		$	22.5
Currency translation adjustment	7.4			7.8
Other	(1.7		)	(1.7		)
	$	19.2		$	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 nine-month periods ended September 30, 2018 and 2017 were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Total⁽¹⁾	14	%	24	%	14	%	23	%
Saudi Aramco⁽²⁾	11	%	10	%	10	%	9	%
Petrobras⁽¹⁾	5	%	11	%	9	%	11	%
BP⁽³⁾	5	%	15	%	7	%	15	%
Other	65	%	40	%	60	%	42	%
	100	%	100	%	100	%	100	%


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


⁽²⁾	During the three-month and nine-month periods ended September 30, 2018 and 2017, all revenues were attributable to our Jackups segment.


⁽³⁾	During the three-month period ended September 30, 2018, 27% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our Other segment. During the three-month period ended September 30, 2017, 78% of the revenues provided by BP were attributable to our Floaters segment and the remainder was attributable to our Other segment.

During the nine-month period ended September 30, 2018, 33% of the revenues provided by BP were attributable to our Floaters segment, 18% of the revenues were attributable to our Jackups segment and the remainder was attributable to our Other segment. During the nine-month period ended September 30, 2017, 78% of the revenues provided by BP were attributable to our Floaters segment and the remainder was attributable to our Other segment.

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Angola⁽¹⁾	$	76.2	$	118.9	$	209.5	$	356.5
Australia⁽²⁾	75.1		48.7		207.7		158.6
U.S. Gulf of Mexico⁽³⁾	59.3		34.9		172.4		112.2
United Kingdom⁽⁴⁾	55.4		49.1		155.7		117.0
Saudi Arabia⁽⁴⁾	49.0		44.2		131.8		127.4
Brazil⁽⁵⁾	22.1		51.1		118.5		147.6
Egypt⁽⁵⁾	—		53.8		31.2		160.4
Other	93.8		59.5		279.6		209.1
	$	430.9	$	460.2	$	1,306.4	$	1,388.8

⁽¹⁾

During the three-month periods ended September 30, 2018 and 2017, 82% and 85% 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 nine-month periods ended September 30, 2018 and 2017, 87% 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.

⁽²⁾

During the three-month periods ended September 30, 2018 and 2017, 87% and 92% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment. During the nine-month periods ended September 30, 2018 and 2017, 94% and 83% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

⁽³⁾

During the three-month period ended September 30, 2018, 35% 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 September 30, 2017, 21% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 35% were attributable to our Jackups segment and the remaining revenues were attributable to our Other segment. During the nine-month period ended September 30, 2018, 36% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 38% were attributable to our Jackups segment, and the remaining revenues were attributable to our Other segment. During the nine-month period ended September 30, 2017, 24% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 37% were attributable to our Jackups segment, and the remaining revenues were attributable to our Other segment.


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


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