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Chapter 11 Proceedings and Ability to Continue as a Going Concern (Tables) | 9 Months Ended
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Sep. 30, 2020
Reorganizations [Abstract] |
Schedule Of Reorganization Items | The following table provides information about reorganization items incurred during the three and nine months ended September 30, 2020, as of or subsequent to the Petition Date (in millions):
|  |  |  | Three and Nine Months Ended September 30, 2020
Write-off of unamortized debt discounts, premiums and issuance costs |  |  |  | $ | 447.9 |
Reorganization items (non-cash) |  |  |  | 447.9 |
DIP facility fees |  |  |  | 23.8 |
Professional fees |  |  |  | 25.8 |
Reorganization Items (Fees) |  |  |  | 49.6 |
Total reorganization items, net |  |  |  | $ | 497.5 |
Reorganization items (fees) unpaid |  |  |  | $ | 25.8 |
Reorganization items (fees) paid |  |  |  | $ | 23.8 |
Schedule Of Liabilities Subject to Compromise | Liabilities subject to compromise at September 30, 2020 consist of the following (in millions):
|  | September 30, 2020
6.875% Senior notes due 2020 |  | $ | 122.9 |
4.70% Senior notes due 2021 |  | 100.7 |
4.875% Senior notes due 2022 |  | 620.8 |
3.00% Exchangeable senior notes due 2024 |  | 849.5 |
4.50% Senior notes due 2024 |  | 303.4 |
4.75% Senior notes due 2024 |  | 318.6 |
8.00% Senior notes due 2024 |  | 292.3 |
5.20% Senior notes due 2025 |  | 333.7 |
7.375% Senior notes due 2025 |  | 360.8 |
7.75% Senior notes due 2026 |  | 1,000.0 |
7.20% Debentures due 2027 |  | 112.1 |
7.875% Senior notes due 2040 |  | 300.0 |
5.40% Senior notes due 2042 |  | 400.0 |
5.75% Senior notes due 2044 |  | 1,000.5 |
5.85% Senior notes due 2044 |  | 400.0 |
Amounts drawn under revolving credit facility |  | 581.0 |
Accrued Interest on Senior Notes, Exchangeable Senior Notes, Debentures and Revolving Credit Facility |  | 203.5 |
Rig holding costs(1) |  | 13.9 |
Total liabilities subject to compromise |  | $ | 7,313.7 |
(1) Represents the holding costs incurred to maintain VALARIS DS-13 and VALARIS DS-14 in the shipyard until the delivery date.
Debtor-in-Possession, Condensed Combined Statement of Operations | VALARIS PLC AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENTS OF OPERATIONS (Unaudited) (In millions)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2020
OPERATING REVENUES |  |  |
Operating revenues | $ | 236.0 |  |  | $ | 944.6 |
Operating revenues from non-debtor subsidiaries | 26.3 |  |  | 113.6 |
Total operating revenues | 262.3 |  |  | 1,058.2 |
OPERATING EXPENSES |  |  |
Contract drilling (exclusive of depreciation) | 264.2 |  |  | 948.9 |
Loss on impairment | — |  |  | 3,643.9 |
Depreciation | 114.2 |  |  | 393.4 |
General and administrative | 72.9 |  |  | 187.2 |
Operating expenses for non-debtor subsidiaries | 16.0 |  |  | 81.4 |
Total operating expenses | 467.3 |  |  | 5,254.8 |
OTHER OPERATING INCOME | 118.1 |  |  | 118.1 |
EQUITY IN EARNINGS OF ARO | 3.9 |  |  | (7.6) |
OPERATING LOSS | (83.0) |  |  | (4,086.1) |
OTHER INCOME (EXPENSE) |  |  |
Interest income | 4.7 |  |  | 15.2 |
Interest income for non-debtor subsidiaries | 65.2 |  |  | 193.5 |
Interest expense, net | (59.8) |  |  | (289.2) |
Interest Expense for non-debtor subsidiaries | (73.1) |  |  | (210.5) |
Reorganization items, net | (497.5) |  |  | (497.5) |
Other, net | 4.5 |  |  | 12.5 |
| (556.0) |  |  | (776.0) |
LOSS BEFORE INCOME TAXES | (639.0) |  |  | (4,862.1) |
EQUITY IN EARNINGS OF SUBSIDIARIES | 9.2 |  |  | 27.5 |
PROVISION (BENEFIT) FOR INCOME TAXES | 17.3 |  |  | (159.4) |
NET LOSS | (647.1) |  |  | (4,675.2) |
Debtor-in-Possession, Condensed Balance Sheet | VALARIS PLC AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED BALANCE SHEET (Unaudited) (In millions)
|  | September 30, 2020
|  | (Unaudited)
ASSETS
CURRENT ASSETS |  |
Cash and cash equivalents |  | $ | 80.9 |
Accounts receivable, net |  | 376.1 |
Accounts receivable from non-debtor subsidiaries |  | 2,930.6 |
Other current assets |  | 427.4 |
Total current assets |  | 3,815.0 |
PROPERTY AND EQUIPMENT, AT COST |  | 12,262.4 |
Less accumulated depreciation |  | 1,866.4 |
Property and equipment, net |  | 10,396.0 |
LONG-TERM NOTES RECEIVABLE FROM ARO |  | 442.7 |
LONG-TERM NOTES RECEIVABLE FROM NON-DEBTOR SUBSIDIARIES |  | 2,103.0 |
INVESTMENT IN ARO |  | 121.1 |
INVESTMENTS IN NON-DEBTOR SUBSIDIARIES |  | 654.9 |
OTHER ASSETS |  | 175.3 |
|  | $ | 17,708.0 |
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES |  |
Accounts payable - trade |  | $ | 149.3 |
Accrued liabilities and other |  | 162.1 |
Short term notes payable to non-debtors |  | 145.9 |
Total current liabilities |  | 457.3 |
LONG-TERM NOTES PAYABLE TO NON-DEBTOR SUBSIDIARIES |  | 2,402.7 |
OTHER LIABILITIES |  | 536.6 |
Total liabilities not subject to compromise |  | 3,396.6 |
Liabilities subject to compromise |  | 7,313.7 |
Total debtors' equity |  | 6,997.7 |
Total liabilities and debtors' equity |  | $ | 17,708.0 |
Debtor-in-Possession, Condensed Combined Cash Flow Statement | VALARIS PLC AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENT OF CASH FLOWS (Unaudited) (In millions)
|  | Nine Months Ended September 30,
|  | 2020
OPERATING ACTIVITIES |  |
Net loss |  | $ | (4,675.2) |
Adjustments to reconcile net loss to net cash used in operating activities: |  |
Non cash reorganization items, net |  | 447.9 |
Loss on impairment |  | 3,643.9 |
Depreciation expense |  | 393.4 |
Equity in earnings of non-debtor subsidiaries |  | (27.5) |
Gain on extinguishment of debt |  | (3.1) |
Debtor in Possession financing fees and payments on Backstop Agreement |  | 43.8 |
Amortization, net |  | 14.4 |
Equity in earnings of ARO |  | 7.6 |
(Gain on) adjustment to bargain purchase |  | 6.3 |
Other |  | (57.7) |
Changes in operating assets and liabilities |  | (151.1) |
Changes in advances (to)/from non-debtor subsidiaries |  | (120.3) |
Net cash used in operating activities |  | (477.6) |
INVESTING ACTIVITIES |  |
Additions to property and equipment |  | (82.9) |
Net proceeds from disposition of assets |  | 44.2 |
Net cash used in investing activities |  | (38.7) |
FINANCING ACTIVITIES |  |
Borrowings on credit facility |  | 596.0 |
Repayments of credit facility borrowings |  | (15.0) |
Debtor in Possession financing fees and payments on Backstop Agreement |  | (43.8) |
Reduction of long-term borrowings |  | (9.7) |
Other |  | (1.9) |
Net cash provided by financing activities |  | 525.6 |
Effect of exchange rate changes on cash and cash equivalents |  | (.1) |
INCREASE IN CASH AND CASH EQUIVALENTS |  | 9.2 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |  | 71.7 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |  | $ | 80.9 |

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