Guarantee Of Registered Securities (Tables)

6 Months Ended

Jun. 30, 2020

Guarantees [Abstract]

Condensed Consolidating Statements Of Operations

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2020

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	17.6		$	49.7		$	—		$	445.7		$	(124.2	)	$	388.8
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	35.6			52.6			—			406.7			(124.2		)	370.7
Loss on impairment	—			—			—			838.0			—			838.0
Depreciation	—			4.7			—			126.8			—			131.5
General and administrative	13.5			13.3			—			35.8			—			62.6
Total operating expenses	49.1			70.6			—			1,407.3			(124.2		)	1,402.8
EQUITY IN EARNINGS OF ARO	—			—			—			(5.2		)	—			(5.2		)
OPERATING LOSS	(31.5		)	(20.9		)	—			(966.8		)	—			(1,019.2		)
OTHER INCOME (EXPENSE), NET	(129.6		)	(0.4		)	(18.3		)	38.4			4.5			(105.4		)
LOSS BEFORE INCOME TAXES	(161.1		)	(21.3		)	(18.3		)	(928.4		)	4.5			(1,124.6		)
PROVISION (BENEFIT) FOR INCOME TAXES	—			(88.4		)	—			72.6			—			(15.8		)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(946.3		)	(50.0		)	9.3			—			987.0			—
NET INCOME (LOSS)	(1,107.4		)	17.1			(9.0		)	(1,001.0		)	991.5			(1,108.8		)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			1.4			—			1.4
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(1,107.4	)	$	17.1		$	(9.0	)	$	(999.6	)	$	991.5		$	(1,107.4	)

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2019

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	19.9		$	36.1		$	—		$	607.9		$	(80.0	)	$	583.9
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	18.3			31.8			—			530.2			(80.0		)	500.3
Loss on impairment	—			—			—			2.5			—			2.5
Depreciation	—			4.0			—			153.9			—			157.9
General and administrative	46.4			.1			—			34.7			—			81.2
Total operating expenses	64.7			35.9			—			721.3			(80.0		)	741.9
EQUITY IN EARNINGS OF ARO	—			—			—			.6			—			.6
OPERATING INCOME (LOSS)	(44.8		)	.2			—			(112.8		)	—			(157.4		)
OTHER INCOME (EXPENSE), NET	694.9			(15.6		)	(20.3		)	(66.0		)	4.3			597.3
INCOME (LOSS) BEFORE INCOME TAXES	650.1			(15.4		)	(20.3		)	(178.8		)	4.3			439.9
PROVISION FOR INCOME TAXES	—			12.4			—			20.2			—			32.6
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(244.6		)	43.2			27.0			—			174.4			—
NET INCOME (LOSS)	405.5			15.4			6.7			(199.0		)	178.7			407.3
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(1.8		)	—			(1.8		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	405.5		$	15.4		$	6.7		$	(200.8	)	$	178.7		$	405.5

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2020 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	34.9		$	96.7		$	—		$	939.0		$	(225.2	)	$	845.4
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	56.2			95.7			—			920.0			(225.2		)	846.7
Loss on impairment	—			—			—			3,646.2			—			3,646.2
Depreciation	—			9.3			—			286.7			—			296.0
General and administrative	33.7			24.8			—			57.5			—			116.0
Total operating expenses	89.9			129.8			—			4,910.4			(225.2		)	4,904.9
EQUITY IN EARNINGS OF ARO	—			—			—			(11.5		)	—			(11.5		)
OPERATING LOSS	(55.0		)	(33.1		)	—			(3,982.9		)	—			(4,071.0		)
OTHER INCOME (EXPENSE), NET	215.5			(.2		)	(37.8		)	(399.7		)	8.9			(213.3		)
INCOME (LOSS) BEFORE INCOME TAXES	160.5			(33.3		)	(37.8		)	(4,382.6		)	8.9			(4,284.3		)
BENEFIT FOR INCOME TAXES	—			(100.0		)	—			(67.8		)	—			(167.8		)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(4,274.2		)	(134.6		)	14.9			—			4,393.9			—
NET LOSS	(4,113.7		)	(67.9		)	(22.9		)	(4,314.8		)	4,402.8			(4,116.5		)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			2.8			—			2.8
NET LOSS ATTRIBUTABLE TO VALARIS	$	(4,113.7	)	$	(67.9	)	$	(22.9	)	$	(4,312.0	)	$	4,402.8		$	(4,113.7	)

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2019 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	31.3		$	75.6		$	—		$	1,038.3		$	(155.4	)	$	989.8
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	30.0			67.5			—			890.8			(155.4		)	832.9
Loss on impairment	—			—			—			2.5			—			2.5
Depreciation	—			7.7			—			275.2			—			282.9
General and administrative	61.3			.2			—			49.3			—			110.8
Total operating expenses	91.3			75.4			—			1,217.8			(155.4		)	1,229.1
EQUITY IN EARNINGS OF ARO	—			—			—			.6			—			.6
OPERATING INCOME (LOSS)	(60.0		)	.2			—			(178.9		)	—			(238.7		)
OTHER INCOME (EXPENSE), NET	678.8			(31.0		)	(40.8		)	(93.3		)	8.4			522.1
INCOME (LOSS) BEFORE INCOME TAXES	618.8			(30.8		)	(40.8		)	(272.2		)	8.4			283.4
PROVISION FOR INCOME TAXES	—			29.0			—			35.1			—			64.1
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(403.7		)	75.3			53.1			—			275.3			—
NET INCOME (LOSS)	215.1			15.5			12.3			(307.3		)	283.7			219.3
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(4.2		)	—			(4.2		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	215.1		$	15.5		$	12.3		$	(311.5	)	$	283.7		$	215.1

Condensed Consolidating Statements Of Comprehensive Income

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended June 30, 2020

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	(1,107.4	)	$	17.1		$	(9.0	)	$	(1,001.0	)	$	991.5	$	(1,108.8	)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value	—			4.8			—			—			—		4.8
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss	—			(10.9		)	—			—			—		(10.9		)
NET OTHER COMPREHENSIVE LOSS	—			(6.1		)	—			—			—		(6.1		)
COMPREHENSIVE INCOME (LOSS)	(1,107.4		)	11.0			(9.0		)	(1,001.0		)	991.5		(1,114.9		)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			1.4			—		1.4
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(1,107.4	)	$	11.0		$	(9.0	)	$	(999.6	)	$	991.5	$	(1,113.5	)

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30, 2019

(In millions)

(Unaudited)



	Valaris plc		ENSCO International Incorporated			Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	405.5	$	15.4		$	6.7	$	(199.0	)	$	178.7	$	407.3
OTHER COMPREHENSIVE INCOME, NET
Net change in derivative fair value	—		(1.6		)	—		—			—		(1.6		)
Reclassification of net losses on derivative instruments from other comprehensive income to net income (loss)	—		1.8			—		—			—		1.8
NET OTHER COMPREHENSIVE INCOME	—		.2			—		—			—		.2
COMPREHENSIVE INCOME (LOSS)	405.5		15.6			6.7		(199.0		)	178.7		407.5
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—		—			—		(1.8		)	—		(1.8		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	405.5	$	15.6		$	6.7	$	(200.8	)	$	178.7	$	405.7

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS

Six Months Ended June 30, 2020

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET LOSS	$	(4,113.7	)	$	(67.9	)	$	(22.9	)	$	(4,314.8	)	$	4,402.8	$	(4,116.5	)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value	—			(8.1		)	—			—			—		(8.1		)
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss	—			(11.0		)	—			—			—		(11.0		)
Other	—			—			—			(.4		)	—		(.4		)
NET OTHER COMPREHENSIVE LOSS	—			(19.1		)	—			(.4		)	—		(19.5		)
COMPREHENSIVE LOSS	(4,113.7		)	(87.0		)	(22.9		)	(4,315.2		)	4,402.8		(4,136.0		)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			2.8			—		2.8
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS	$	(4,113.7	)	$	(87.0	)	$	(22.9	)	$	(4,312.4	)	$	4,402.8	$	(4,133.2	)

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Six Months Ended June 30, 2019

(In millions)

(Unaudited)



	Valaris plc		ENSCO International Incorporated			Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	215.1	$	15.5		$	12.3	$	(307.3	)	$	283.7	$	219.3
OTHER COMPREHENSIVE INCOME (LOSS), NET
Net change in derivative fair value	—		(1.6		)	—		—			—		(1.6		)
Reclassification of net losses on derivative instruments from other comprehensive income (loss) to net income (loss)	—		3.4			—		—			—		3.4
Other	—		—			—		(.1		)	—		(.1		)
NET OTHER COMPREHENSIVE INCOME (LOSS)	—		1.8			—		(.1		)	—		1.7
COMPREHENSIVE INCOME (LOSS)	215.1		17.3			12.3		(307.4		)	283.7		221.0
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—		—			—		(4.2		)	—		(4.2		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	215.1	$	17.3		$	12.3	$	(311.6	)	$	283.7	$	216.8

Condensed Consolidating Balance Sheets

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2020 (In millions) (Unaudited)

	Valaris plc		ENSCO International Incorporated		Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	156.5	$	—	$	—		$	45.5		$	—		$	202.0
Accounts receivable, net	.2		25.7		—			337.4			—			363.3
Accounts receivable from affiliates	4,334.8		201.2		1.4			1,224.7			(5,762.1		)	—
Other current assets	.5		53.6		—			446.7			—			500.8
Total current assets	4,492.0		280.5		1.4			2,054.3			(5,762.1		)	1,066.1
PROPERTY AND EQUIPMENT, AT COST	1.1		113.6		—			13,105.6			—			13,220.3
Less accumulated depreciation	1.1		93.4		—			1,933.2			—			2,027.7
Property and equipment, net	—		20.2		—			11,172.4			—			11,192.6
LONG - TERM NOTES RECEIVABLE FROM ARO	—		—		—			452.8			—			452.8
INVESTMENT IN ARO	—		—		—			117.2			—			117.2
DUE FROM AFFILIATES	1,593.3		217.5		38.9			4,680.8			(6,530.5		)	—
INVESTMENTS IN AFFILIATES	9,166.5		654.2		1,239.8						(11,060.5		)	—
OTHER ASSETS	1.1		20.4		—			188.7			—			210.2
	$	15,252.9	$	1,192.8	$	1,280.1		$	18,666.2		$	(23,353.1	)	$	13,038.9
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	141.1	$	16.6	$	12.2		$	380.1		$	—		$	550.0
Accounts payable to affiliates	1,117.0		237.2		802.2			3,605.7			(5,762.1		)	—
Current maturities of long-term debt	2,394.8				123.3			—			—			2,518.1
Total current liabilities	3,652.9		253.8		937.7			3,985.8			(5,762.1		)	3,068.1
DUE TO AFFILIATES	3,534.0		505.6		641.2			1,849.7			(6,530.5		)	—
LONG-TERM DEBT	2,880.6		111.7		372.3			727.6						4,092.2
OTHER LIABILITIES			247.6					445.6			—			693.2
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	5,185.4		74.1		(671.1		)	11,662.5			(11,060.5		)	5,190.4
NONCONTROLLING INTERESTS	—		—		—			(5.0		)	—			(5.0		)
Total equity (deficit)	5,185.4		74.1		(671.1		)	11,657.5			(11,060.5		)	5,185.4
	$	15,252.9	$	1,192.8	$	1,280.1		$	18,666.2		$	(23,353.1	)	$	13,038.9

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions)

	Valaris plc			ENSCO International Incorporated		Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	21.5		$	—	$	—		$	75.7		$	—		$	97.2
Accounts receivable, net	.2			19.7		—			500.8			—			520.7
Accounts receivable from affiliates	4,031.4			386.0		—			897.2			(5,314.6		)	—
Other current assets	.6			11.6		—			434.3			—			446.5
Total current assets	4,053.7			417.3		—			1,908.0			(5,314.6		)	1,064.4
PROPERTY AND EQUIPMENT, AT COST	1.9			108.8		—			18,283.1			—			18,393.8
Less accumulated depreciation	1.9			84.7		—			3,210.3			—			3,296.9
Property and equipment, net	—			24.1		—			15,072.8			—			15,096.9
LONG-TERM NOTES RECEIVABLE FROM ARO	—			—		—			452.9			—			452.9
INVESTMENT IN ARO	—			—		—			128.7			—			128.7
DUE FROM AFFILIATES	73.8			—		38.9			1,775.7			(1,888.4		)	—
INVESTMENTS IN AFFILIATES	9,778.5			788.8		1,224.9			—			(11,792.2		)	—
OTHER ASSETS	7.9			3.8		—			182.6			(6.0		)	188.3
	$	13,913.9		$	1,234.0	$	1,263.8		$	19,520.7		$	(19,001.2	)	$	16,931.2
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	99.2		$	29.3	$	12.2		$	565.2		$	—		$	705.9
Accounts payable to affiliates	818.8			147.8		815.1			3,532.9			(5,314.6		)	—
Current maturities of long - term debt	—			—		124.8			—			—			124.8
Total current liabilities	918.0			177.1		952.1			4,098.1			(5,314.6		)	830.7
DUE TO AFFILIATES	710.3			478.8		586.6			112.7			(1,888.4		)	—
LONG-TERM DEBT	2,990.6			111.7		373.3			2,447.9			—			5,923.5
OTHER LIABILITIES	(14.6		)	90.6		—			797.4			(6.0		)	867.4
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	9,309.6			375.8		(648.2		)	12,065.9			(11,792.2		)	9,310.9
NONCONTROLLING INTERESTS	—			—		—			(1.3		)	—			(1.3		)
Total equity (deficit)	9,309.6			375.8		(648.2		)	12,064.6			(11,792.2		)	9,309.6
	$	13,913.9		$	1,234.0	$	1,263.8		$	19,520.7		$	(19,001.2	)	$	16,931.2

Condensed Consolidating Statements Of Cash Flows



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2020 (In millions) (Unaudited)
	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	(203.1	)	$	149.5		$	(40.3	)	$	(287.2	)	$	—	$	(381.1	)
INVESTING ACTIVITIES
Additions to property and equipment	—			—			—			(67.1		)	—		(67.1		)
Proceeds from disposition of assets	—			—			—			13.8			—		13.8
Net cash used in investing activities	—			—			—			(53.3		)	—		(53.3		)
FINANCING ACTIVITIES
Borrowings on credit facility	566.0			—			—			—			—		566.0
Advances from (to) affiliates	(202.9		)	(149.5		)	40.3			312.1			—		—
Repayments of credit facility borrowings	(15.0		)	—			—			—			—		(15.0		)
Reduction of long -term borrowings	(9.7		)	—			—			—			—		(9.7		)
Other	(.3		)	—			—			(1.6		)	—		(1.9		)
Net cash provided by (used in) financing activities	338.1			(149.5		)	40.3			310.5			—		539.4
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.2		)			(.2		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	135.0			—			—			(30.2		)	—		104.8
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21.5			—			—			75.7			—		97.2
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	156.5		$	—		$	—		$	45.5		$	—	$	202.0



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (In millions) (Unaudited)
	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
OPERATING ACTIVITIES
Net cash used in operating activities	$	(79.9	)	$	(117.5	)	$	(68.6	)	$	(27.4	)	$	—	$	(293.4	)
INVESTING ACTIVITIES
Rowan cash acquired	—			—			—			931.9			—		931.9
Maturities of short-term investments	339.0			—			—			—			—		339.0
Purchases of short-term investments	(145.0		)	—			—			—			—		(145.0		)
Additions to property and equipment	—			—			—			(134.8		)	—		(134.8		)
Other	2.5			—			—			2.0			—		4.5
Net cash provided by investing activities	196.5			—			—			799.1			—		995.6
FINANCING ACTIVITIES
Debt solicitation fees	—			—			—			(8.7		)	—		(8.7		)
Cash dividends paid	(4.5		)	—			—			—			—		(4.5		)
Repurchase of common shares	(4.2		)	—			—			—			—		(4.2		)
Advances from (to) affiliates	174.5			117.5			68.6			(360.6		)	—		—
Other	(0.5		)	—			—			—			—		(0.5		)
Net cash provided by (used in) financing activities	165.3			117.5			68.6			(369.3		)	—		(17.9		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.3		)	—		(.3		)
INCREASE IN CASH AND CASH EQUIVALENTS	281.9			—			—			402.1			—		684.0
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	199.8			—			2.7			72.6			—		275.1
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	481.7		$	—		$	2.7		$	474.7		$	—	$	959.1