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Supplemental Financial Information
 6 Months Ended
Jun. 30, 2019
Supplemental Financial Information [Abstract]  
Supplemental Financial Information Supplemental Financial Information

Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Trade
$
568.3

 
$
301.7

Other
68.9

 
46.4

 
637.2

 
348.1

Allowance for doubtful accounts
(8.5
)
 
(3.4
)
 
$
628.7

 
$
344.7



Other current assets consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Materials and supplies
$
360.7

 
$
268.1

Prepaid taxes
58.3

 
35.0

Deferred costs
47.5

 
23.5

Prepaid expenses
16.2

 
15.2

Other
17.0

 
19.1

 
$
499.7

 
$
360.9

 
    
Other assets consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Right-of-use assets
$
57.1

 
$
—

Deferred tax assets
31.4

 
29.4

Supplemental executive retirement plan assets
26.2

 
27.2

Deferred costs
19.9

 
21.5

Intangible assets
14.9

 
—

Other
19.9

 
19.7

 
$
169.4


$
97.8


    
Accrued liabilities and other consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Accrued interest
$
136.9

 
$
100.6

Personnel costs
101.2

 
82.5

Income and other taxes payable
53.7

 
36.9

Deferred revenue
46.2

 
56.9

Accrued rig holding costs
26.5

 
14.3

Lease liabilities
21.5

 
—

Pension and other post-retirement benefits
19.7

 
—

Derivative liabilities
5.1

 
10.9

Other
27.5

 
15.9

 
$
438.3

 
$
318.0


        
Other liabilities consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Unrecognized tax benefits (inclusive of interest and penalties)
$
276.2

 
$
177.0

Pension and other post-retirement benefits
214.4

 
—

Deferred tax liabilities
106.5

 
70.7

Intangible liabilities
53.8

 
53.5

Lease liabilities
48.6

 
—

Supplemental executive retirement plan liabilities
26.9

 
28.1

Personnel costs
22.7

 
25.1

Deferred revenue
14.8

 
20.5

Deferred rent
—

 
11.7

Other
35.1

 
9.4

 
$
799.0

 
$
396.0


    
Accumulated other comprehensive income consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
Derivative instruments
$
14.4

 
$
12.6

Currency translation adjustment
7.3

 
7.3

Other
(1.8
)
 
(1.7
)
 
$
19.9

 
$
18.2



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 for additional information on our derivatives.

Consolidated revenues by customer for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Total(1)
13
%
 
13
%
 
15
%
 
14
%
Saudi Aramco(2)
9
%
 
9
%
 
10
%
 
9
%
BP(3)
9
%
 
5
%
 
8
%
 
8
%
Petrobras(4)
4
%
 
10
%
 
5
%
 
11
%
Other
65
%
 
63
%
 
62
%
 
58
%
 
100
%

100
%

100
%

100
%

(1) 
During the three-month and six-month periods ended June 30, 2019, 90% and 95% of revenues provided by Total were attributable to the Floaters segment and the remainder was attributable to the Jackup segments. During the three-month and six-month periods ended June 30, 2018, all revenues were attributable to our Floaters segment.

(2) 
During the three-month and six-month periods ended June 30, 2019 and 2018, all revenues were attributable to our Jackups segment.

(3) 
During the three-month period ended June 30, 2019, 44% of the revenues provided by BP were attributable to our Jackups segment, 19% of the revenues were attributable to our Floaters segment and the remaining was attributable to our managed rigs. During the three-month period ended June 30, 2018, 28% of the revenues provided by BP were attributable to our Jackups segment and the remainder was attributable to our managed rigs.

During the six-month period ended June 30, 2019, 39% of the revenues provided by BP were attributable to our Jackups segment, 13% of the revenues were attributable to our Floaters segment and the remainder was attributable to our managed rigs. 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 remainder was attributable to our managed rigs.

(4) 
During the three-month and six-month periods ended June 30, 2019 and 2018, all revenues were attributable to our Floaters segment.


Consolidated revenues by region for the three-month and six-month periods ended June 30, 2019 and 2018 were as follows:

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
U.S. Gulf of Mexico(1)
$
93.4

 
$
59.5

 
$
148.1

 
$
113.1

Saudi Arabia(2)
83.2

 
39.5

 
136.6

 
82.7

Australia(3)
70.0

 
80.4

 
137.3

 
132.6

Angola(4)
68.1

 
72.2

 
138.7

 
133.3

United Kingdom(5)
54.2

 
53.7

 
97.6

 
100.3

Brazil(6)
25.1

 
46.1

 
47.1

 
96.4

Other
189.9

 
107.1

 
284.4

 
217.1

 
$
583.9

 
$
458.5

 
$
989.8

 
$
875.5


(1) 
During the three-month period ended June 30, 2019, 39% 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 managed rigs. 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 managed rigs.

During the six-month period ended June 30, 2019, 34% of revenues in the U.S. Gulf of Mexico were attributable to our Floaters segment, 41% were attributable to our Jackups segment, and the remaining revenues were attributable to our managed rigs. During the six-month period ended June 30, 2018, our Floaters and Jackups segments each earned 37% of the revenues in the U.S. Gulf of Mexico, and the remaining revenues were attributable to our managed rigs.

(2) 
During the three-month and six-month periods ended June 30, 2019, 60% and 76% of the revenues earned in Saudi Arabia, respectively, were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates to our rigs leased to ARO and certain revenues related to our Transition Services Agreement and Secondment Agreement. During the three-month and six-month period ended June 30, 2018, all revenues earned in Saudi Arabia were attributable to our Jackups segment.

(3) 
During the three-month periods ended June 30, 2019 and 2018, 94% and 95% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment. During the six-month periods ended June 30, 2019 and 2018, 94% and 97% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

(4) 
During the three-month periods ended June 30, 2019 and 2018, 90% and 84% 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, 2019 and 2018, 88% and 90% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

(5) 
During the three-month and six-month periods ended June 30, 2019 and 2018, all revenues earned in the United Kingdom were attributable to our Jackups segment.

(6) 
During the three-month and six-month periods ended June 30, 2019 and 2018, all revenues earned in Brazil were attributable to our Floaters segment.