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Supplemental Financial Information

6 Months Ended

Jun. 30, 2020

Supplemental Financial Information [Abstract]

Consolidated Balance Sheet Information

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



	June 30, 2020			December 31, 2019
Trade	$	316.7		$	466.4
Other	54.9			60.3
	371.6			526.7
Allowance for doubtful accounts	(8.3		)	(6.0		)
	$	363.3		$	520.7

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



	June 30, 2020		December 31, 2019
Materials and supplies	$	303.0	$	340.1
Prepaid expenses	81.0		13.5
Prepaid taxes	44.5		36.2
Deferred costs	21.9		23.3
Assets held-for-sale	20.9		2.3
Other	29.5		31.1
	$	500.8	$	446.5

Other assets consisted of the following (in millions):



	June 30, 2020		December 31, 2019
Tax receivables	$	64.4	$	36.3
Deferred tax assets	48.6		26.6
Right-of-use assets	46.2		58.1
Supplemental executive retirement plan assets	22.3		26.0
Deferred costs	8.4		7.1
Intangible assets	3.8		11.9
Other	16.5		22.3
	$	210.2	$	188.3

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



	June 30, 2020		December 31, 2019
Accrued interest	$	157.2	$	115.2
Personnel costs	97.9		134.4
Income and other taxes payable	65.9		61.2
Deferred revenue	31.5		30.0
Lease liabilities	16.8		21.1
Derivative liabilities	4.2		.9
Settlement of legal dispute	—		20.3
Other	24.6		34.6
	$	398.1	$	417.7

Other liabilities consisted of the following (in millions):



	June 30, 2020		December 31, 2019
Unrecognized tax benefits (inclusive of interest and penalties)	$	240.1	$	323.1
Pension and other post-retirement benefits	230.3		246.7
Intangible liabilities	50.8		52.1
Lease liabilities	44.1		51.8
Deferred tax liabilities	37.1		99.0
Supplemental executive retirement plan liabilities	22.7		26.7
Personnel costs	15.1		24.5
Deferred revenue	11.2		9.7
Other	41.8		33.8
	$	693.2	$	867.4

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



	June 30, 2020			December 31, 2019
Pension and other post-retirement benefits	$	(21.7	)	$	(21.7	)
Derivative instruments	3.5			22.6
Currency translation adjustment	6.7			7.1
Other	(1.8		)	(1.8		)
	$	(13.3	)	$	6.2

Consolidated Statement of Operations Information

Other, net, for the three and six months ended June 30, 2020 and 2019 (in millions):



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net periodic pension (cost) income, excluding service cost	$	3.1		$	1.7		$	6.1		$	1.7
Currency translation adjustments	(1.2		)	(2.8		)	2.6			(3.1		)
Gain on bargain purchase and measurement period adjustments	—			712.8			(6.3		)	712.8
Other income (expense)	3.2			(8.0		)	3.2			(5.4		)
	$	5.1		$	703.7		$	5.6		$	706.0

Concentration of Risk

We are exposed to credit risk related to our receivables from customers, our cash and cash equivalents, 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 investments by focusing on diversification and quality of instruments.

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 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 8 - Derivative Instruments" for additional information on our derivative activity.

Consolidated revenues by customer for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Woodside Energy⁽¹⁾	12	%	4	%	7	%	4	%
BP⁽²⁾	11	%	9	%	9	%	8	%
Saudi Aramco⁽³⁾	9	%	9	%	9	%	10	%
Total⁽⁴⁾	5	%	13	%	11	%	15	%
Other	63	%	65	%	64	%	63	%
	100	%	100	%	100	%	100	%


⁽¹⁾	During the three and six months ended June 30, 2020 and 2019, all revenues were attributable to our Floaters segment.


⁽²⁾	During the three-month period ended June 30, 2020, 17% of the revenues provided by BP were attributable to our Jackups segment, 39% of the revenues were attributable to our Floaters segment and the remaining were attributable to our managed rigs. During the six-month period ended June 30, 2020, 20% of the revenues

provided by BP were attributable to our Jackups segment, 27% of the revenues were attributable to our Floaters segment and the remaining were attributable to our managed rigs.

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 were 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 remaining were attributable to our managed rigs.


⁽³⁾	During the three and six months ended June 30, 2020 and 2019, all revenues were attributable to our Jackups segment.


⁽⁴⁾	During the three and six months ended June 30, 2020, 56% and 82% of revenues provided by Total were attributable to the Floaters segment and the remaining were attributable to the Jackup segment. During the three and six months ended June 30, 2019, 90% and 95% of revenues provided by Total were attributable to the Floaters segment and the remaining were attributable to the Jackup segment.

Consolidated revenues by region for the three and six months ended June 30, 2020 and 2019 were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Australia⁽¹⁾	$	72.3	$	70.0	$	98.3	$	137.3
U.S. Gulf of Mexico⁽²⁾	66.6		93.4		145.3		148.1
Saudi Arabia⁽³⁾	57.3		83.2		141.2		136.6
United Kingdom⁽⁴⁾	52.8		54.2		105.3		97.6
Norway⁽⁴⁾	46.5		9.7		87.5		9.7
Angola⁽⁵⁾	1.7		68.1		63.2		138.7
Other	91.6		205.3		204.6		321.8
	$	388.8	$	583.9	$	845.4	$	989.8


⁽¹⁾	During the three months ended June 30, 2020 and 2019, 100% and 94% 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 months ended June 30, 2020 and 2019, 89% and 94% of the revenues earned in Australia, respectively, were attributable to our Floaters segment, and remaining revenues were attributable to our Jackups segment.

⁽²⁾

During the three months ended June 30, 2020, 66% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 6%were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs. During the six months ended June 30, 2020, 61% of the revenues earned in the U.S. Gulf of Mexico were attributable to our Floaters segment, 12% were attributable to our Jackups segment and the remaining revenues were attributable to our managed rigs.

During the three months 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 six months ended June 30, 2019, 34% of the revenues earned 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.


⁽³⁾	During the three and six months ended June 30, 2020, 62% and 57% 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 and six months 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.


⁽⁴⁾	During the three and six months ended June 30, 2020 and 2019, all revenues earned in the United Kingdom and Norway were attributable to our Jackups segment.


⁽⁵⁾	During the three months ended June 30, 2020, all of the revenues earned in Angola were attributable to our Jackup segment. During the three months ended June 30, 2019, 90% of the revenues earned in Angola, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.

During the six months ended June 30, 2020 and 2019, 79% and 88% of the revenues earned in Angola, respectively, were attributable to our Floaters segment, and the remaining revenues were attributable to our Jackups segment.