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Guarantee Of Registered Securities
 9 Months Ended
Sep. 30, 2020
Guarantees [Abstract]  
Guarantee Of Registered Securities
In connection with the Pride acquisition, Valaris and Pride entered into a supplemental indenture to the indenture dated July 1, 2004 between Pride and the Bank of New York Mellon, as indenture trustee, providing for, among other matters, the full and unconditional guarantee by Valaris of Pride’s 2020 Notes and 2040 Notes, which had an aggregate outstanding principal balance of $422.9 million as of September 30, 2020. The Valaris guarantee provides for the unconditional and irrevocable guarantee of the prompt payment, when due, of any amount owed to the holders of the notes.
 
Valaris is also a full and unconditional guarantor of the 7.2% debentures due 2027 issued by Ensco International Incorporated in November 1997, which had an aggregate outstanding principal balance of $112.1 million as of September 30, 2020.
    
Pride and Ensco International Incorporated are 100% owned subsidiaries of Valaris. All guarantees are unsecured obligations of Valaris ranking equal in right of payment with all of its existing and future unsecured and unsubordinated indebtedness.

Valaris, Pride and Ensco International Incorporated as well as certain entities included below in non-guarantor subsidiaries of Valaris are the Debtors in the Chapter 11 Cases. The Debtors continue to operate their businesses and manage their properties as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. See "Note 2 -Chapter 11 Proceedings and Ability to Continue as a Going Concern" for additional information.
   
The following tables present the unaudited condensed consolidating statements of operations for the three and nine months ended September 30, 2020 and 2019; the unaudited condensed consolidating statements of comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019; the condensed consolidating balance sheets as of September 30, 2020 (unaudited) and December 31, 2019; and the unaudited condensed consolidating statements of cash flows for the nine months ended September 30, 2020 and 2019, in accordance with Rule 3-10 of Regulation S-X.
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended September 30, 2020
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING REVENUES$12.4 $85.3 $— $372.4 $(184.8)$285.3 
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)
72.4 84.7 — 334.9 (184.8)307.2 
Depreciation— 1.8 — 120.6 — 122.4 
General and administrative26.7 8.8 — 36.6 — 72.1 
Total operating expenses99.1 95.3 — 492.1 (184.8)501.7 
OTHER OPERATING INCOME— — — 118.1 — 118.1 
EQUITY IN EARNINGS OF ARO— — — 3.9 — 3.9 
OPERATING INCOME (LOSS)(86.7)(10.0)— 2.3 — (94.4)
OTHER INCOME (EXPENSE), NET(499.1)(0.8)64.8 (123.1)2.5 (555.7)
INCOME (LOSS) BEFORE INCOME TAXES(585.8)(10.8)64.8 (120.8)2.5 (650.1)
PROVISION FOR INCOME TAXES— 7.3 — 14.6 — 21.9 
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX(85.1)43.2 3.0 — 38.9 — 
NET INCOME (LOSS)(670.9)25.1 67.8 (135.4)41.4 (672.0)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — 1.1 — 1.1 
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS$(670.9)$25.1 $67.8 $(134.3)$41.4 $(670.9)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended September 30, 2019
(In millions)
(Unaudited)

Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING REVENUES$15.7 $53.0 $— $588.8 $(106.2)$551.3 
OPERATING EXPENSES     
Contract drilling (exclusive of depreciation)
19.3 45.3 — 538.1 (106.2)496.5 
Loss on impairment— — — 88.2 — 88.2 
Depreciation— 7.7 — 155.3 — 163.0 
General and administrative9.7 .1 — 26.3 — 36.1 
Total operating expenses29.0 53.1 — 807.9 (106.2)783.8 
EQUITY IN EARNINGS OF ARO
— — — (3.7)— (3.7)
OPERATING LOSS(13.3)(.1)— (222.8)— (236.2)
OTHER INCOME (EXPENSE), NET
94.7 (5.6)(20.2)(33.0)4.3 40.2 
INCOME (LOSS) BEFORE INCOME TAXES
81.4 (5.7)(20.2)(255.8)4.3 (196.0)
PROVISION (BENEFIT) FOR INCOME TAXES— (18.4)— 19.9 — 1.5 
EQUITY LOSSES IN AFFILIATES, NET OF TAX
(278.5)(40.2)(68.0)— 386.7 — 
NET LOSS(197.1)(27.5)(88.2)(275.7)391.0 (197.5)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
— — — .4 — .4 
NET LOSS ATTRIBUTABLE TO VALARIS
$(197.1)$(27.5)$(88.2)$(275.3)$391.0 $(197.1)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 2020
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING REVENUES$47.3 $182.0 $— $1,311.4 $(410.0)$1,130.7 
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)
128.6 180.4 — 1,254.9 (410.0)1,153.9 
Loss on impairment— — — 3,646.2 — 3,646.2 
Depreciation— 11.1 — 407.3 — 418.4 
General and administrative60.4 33.6 — 94.1 — 188.1 
Total operating expenses189.0 225.1 — 5,402.5 (410.0)5,406.6 
OTHER OPERATING INCOME— — — 118.1 118.1 
EQUITY IN LOSSES OF ARO— — — (7.6)— (7.6)
OPERATING LOSS(141.7)(43.1)— (3,980.6)— (4,165.4)
OTHER INCOME (EXPENSE), NET
(283.6)(1.0)27.0 (522.8)11.4 (769.0)
INCOME (LOSS) BEFORE INCOME TAXES(425.3)(44.1)27.0 (4,503.4)11.4 (4,934.4)
BENEFIT FOR INCOME TAXES
— (92.7)— (53.2)— (145.9)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX(4,359.3)(91.4)17.9 — 4,432.8 — 
NET INCOME (LOSS)(4,784.6)(42.8)44.9 (4,450.2)4,444.2 (4,788.5)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — 3.9 — 3.9 
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS$(4,784.6)$(42.8)$44.9 $(4,446.3)$4,444.2 $(4,784.6)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 2019
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING REVENUES$47.0 $128.6 $— $1,627.1 $(261.6)$1,541.1 
OPERATING EXPENSES      
Contract drilling (exclusive of depreciation)
49.3 112.8 — 1,428.9 (261.6)1,329.4 
Loss on impairment— — — 90.7 — 90.7 
Depreciation— 15.4 — 430.5 — 445.9 
General and administrative71.0 .3 — 75.6 — 146.9 
Total operating expenses120.3 128.5 — 2,025.7 (261.6)2,012.9 
EQUITY IN EARNINGS OF ARO
— — — (3.1)— (3.1)
OPERATING INCOME (LOSS)(73.3).1 — (401.7)— (474.9)
OTHER INCOME (EXPENSE), NET773.5 (36.6)(61.0)(126.3)12.7 562.3 
INCOME (LOSS) BEFORE INCOME TAXES700.2 (36.5)(61.0)(528.0)12.7 87.4 
PROVISION FOR INCOME TAXES
— 10.6 — 55.0 — 65.6 
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX(682.2)35.1 (14.9)— 662.0 — 
NET INCOME (LOSS)18.0 (12.0)(75.9)(583.0)674.7 21.8 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — (3.8)— (3.8)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS$18.0 $(12.0)$(75.9)$(586.8)$674.7 $18.0 
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS
Three Months Ended September 30, 2020
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
NET INCOME (LOSS)$(670.9)$25.1 $67.8 $(135.4)$41.4 $(672)
OTHER COMPREHENSIVE INCOME (LOSS), NET
Net change in derivative fair value
— 2.7 — — — 2.7 
Reclassification of net gains on derivative instruments from other comprehensive income (loss) to net income (loss) — (.5)— — — (.5)
Other(.1)(.1)
NET OTHER COMPREHENSIVE INCOME (LOSS)— 2.2 — (.1)— 2.1 
COMPREHENSIVE INCOME (LOSS)
(670.9)27.3 67.8 (135.5)41.4 (669.9)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
— — — 1.1 — 1.1 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS
$(670.9)$27.3 $67.8 $(134.4)$41.4 $(668.8)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS
Three Months Ended September 30, 2019
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
NET LOSS$(197.1)$(27.5)$(88.2)$(275.7)$391.0 $(197.5)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value
— (5.7)— — — (5.7)
Reclassification of net losses on derivative instruments from other comprehensive loss to net loss— 4.9 — — — 4.9 
Other— — — (.2)— (.2)
NET OTHER COMPREHENSIVE LOSS
— (.8)— (.2)— (1.0)
COMPREHENSIVE LOSS
(197.1)(28.3)(88.2)(275.9)391.0 (198.5)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
— — — .4 — .4 
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS
$(197.1)$(28.3)$(88.2)$(275.5)$391.0 $(198.1)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS
Nine Months Ended September 30, 2020
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
NET INCOME (LOSS)$(4,784.6)$(42.8)$44.9 $(4,450.2)$4,444.2 $(4,788.5)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value
— (5.4)— — — (5.4)
Reclassification of net gains on derivative instruments from other comprehensive loss to net income (loss)— (11.5)— — — (11.5)
Other
— — — (.5)— (.5)
NET OTHER COMPREHENSIVE LOSS— (16.9)— (.5)— (17.4)
COMPREHENSIVE INCOME (LOSS)(4,784.6)(59.7)44.9 (4,450.7)4,444.2 (4,805.9)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — 3.9 — 3.9 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS$(4,784.6)$(59.7)$44.9 $(4,446.8)$4,444.2 $(4,802.0)
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Nine Months Ended September 30, 2019
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
NET INCOME (LOSS)$18.0 $(12.0)$(75.9)$(583.0)$674.7 $21.8 
OTHER COMPREHENSIVE INCOME (LOSS), NET
Net change in derivative fair value
— (7.3)— — — (7.3)
Reclassification of net losses on derivative instruments from other comprehensive income (loss) to net income (loss)— 8.3 — — — 8.3 
Other
— — — (.3)— (.3)
NET OTHER COMPREHENSIVE INCOME (LOSS)— 1.0 — (.3)— .7 
COMPREHENSIVE INCOME (LOSS)18.0 (11.0)(75.9)(583.3)674.7 22.5 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS— — — (3.8)— (3.8)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS$18.0 $(11.0)$(75.9)$(587.1)$674.7 $18.7 
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
September 30, 2020
(In millions)
(Unaudited)

Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
ASSETS 
      
CURRENT ASSETS      
Cash and cash equivalents$62.9 $— $— $117.5 $— $180.4 
Accounts receivable, net — 27.5 — 402.2 — 429.7 
Accounts receivable from affiliates4,368.8 201.7 2.0 1,249.0 (5,821.5)— 
Other current assets5.5 42.7 — 406.5 — 454.7 
Total current assets4,437.2 271.9 2.0 2,175.2 (5,821.5)1,064.8 
PROPERTY AND EQUIPMENT, AT COST1.3 116.2 — 13,098.0 — 13,215.5 
Less accumulated depreciation1.3 95.2 — 2,036.6 — 2,133.1 
Property and equipment, net— 21.0 — 11,061.4 — 11,082.4 
LONG - TERM NOTES RECEIVABLE FROM ARO— — — 442.7 — 442.7 
INVESTMENT IN ARO— — 121.1 — 121.1 
DUE FROM AFFILIATES1,592.7 216.8 38.9 4,760.9 (6,609.3)— 
INVESTMENTS IN AFFILIATES9,079.3 697.4 1,242.8 — (11,019.5)— 
OTHER ASSETS.9 14.5 — 184.8 — 200.2 
 $15,110.1 $1,221.6 $1,283.7 $18,746.1 $(23,450.3)$12,911.2 
LIABILITIES AND SHAREHOLDERS' EQUITY     
CURRENT LIABILITIES      
Accounts payable and accrued liabilities$5.7 $2.1 $— $380.2 $— $388.0 
Accounts payable to affiliates1,183.3 171.4 809.1 3,657.7 (5,821.5)— 
Total current liabilities1,189.0 173.5 809.1 4,037.9 (5,821.5)388.0 
DUE TO AFFILIATES 3,538.0 584.1 638.8 1,848.4 (6,609.3)— 
OTHER LIABILITIES241.5 455.4 — 696.9 
Total liabilities not subject to compromise4,727.0 999.1 1,447.9 6,341.7 (12,430.8)1,084.9 
LIABILITIES SUBJECT TO COMPROMISE5,870.5 115.2 439.1 888.9 — 7,313.7 
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)4,512.6 107.3 (603.3)11,521.6 (11,019.5)4,518.7 
NONCONTROLLING INTERESTS— — (6.1)— (6.1)
Total equity (deficit)4,512.6 107.3 (603.3)11,515.5 (11,019.5)4,512.6 
      $15,110.1 $1,221.6 $1,283.7 $18,746.1 $(23,450.3)$12,911.2 
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2019
(In millions)
 Valaris plcENSCO International IncorporatedPride International LLCOther Non-Guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
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 assets4,053.7 417.3 — 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 AFFILIATES73.8 — 38.9 1,775.7 (1,888.4)— 
INVESTMENTS IN AFFILIATES
9,778.5 788.8 1,224.9 — (11,792.2)— 
OTHER ASSETS7.9 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 liabilities918.0 177.1 952.1 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)$16,931.2 
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2020
(In millions)
(Unaudited)
Valaris plcENSCO International IncorporatedPride International LLCOther Non-guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING ACTIVITIES      
Net cash provided by (used in) operating activities$(323.9)$133.3 $(44.2)$(161.6)$— $(396.4)
INVESTING ACTIVITIES
Additions to property and equipment 
— — — (82.9)— (82.9)
Proceeds from disposition of assets
— — — 44.2 — 44.2 
Net cash used in investing activities— — — (38.7)— (38.7)
FINANCING ACTIVITIES     
Debtor in possession financing fees and payments on Backstop Agreement(43.8)— — — — (43.8)
Borrowings on credit facility
343.9 — — 252.1 — 596.0 
Advances from (to) affiliates
89.9 (133.3)44.2 (0.8)— — 
Repayments of credit facility borrowings
(15.0)— — — — (15.0)
Reduction of long -term borrowings
(9.7)— — — — (9.7)
Other
— — — (9.1)— (9.1)
Net cash provided by (used in) financing activities365.3 (133.3)44.2 242.2 — 518.4 
Effect of exchange rate changes on cash and cash equivalents
— — — (.1)(.1)
NET INCREASE IN CASH AND CASH EQUIVALENTS41.4 — — 41.8 — 83.2 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
21.5 — — 75.7 — 97.2 
CASH AND CASH EQUIVALENTS, END OF PERIOD
$62.9 $— $— $117.5 $— $180.4 
VALARIS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2019
(In millions)
(Unaudited)
 Valaris plcENSCO International IncorporatedPride International LLCOther Non-guarantor Subsidiaries of ValarisConsolidating AdjustmentsTotal
OPERATING ACTIVITIES      
Net cash used in operating activities $(125.2)$(82.3)$(98.0)$(122.0)$—$(427.5)
INVESTING ACTIVITIES     

Rowan cash acquired
— — — 931.9 — 931.9 
Maturities of short-term investments
474.0 — — — — 474.0 
Purchases of short-term investments
(145.0)— — — — (145.0)
Additions to property and equipment 
— — — (174.2)— (174.2)
Net proceeds from disposition of assets— — — 4.9 — 4.9 
Net cash provided by investing activities 329.0 — — 762.6 — 1,091.6 
FINANCING ACTIVITIES     
Reduction of long-term borrowings(536.6)(30.4)— (361.1)— (928.1)
Borrowings on credit facility175.0 — — — — 175.0 
Repayments of credit facility borrowings(34.4)— — — — (34.4)
Debt solicitation fees
— — — (9.4)— (9.4)
Cash dividends paid
(4.5)— — — — (4.5)
Advances from (to) affiliates
74.7 112.7 95.3 (282.7)— — 
Other
(5.3)— — (2.4)— (7.7)
Net cash provided by (used in) financing activities(331.1)82.3 95.3 (655.6)— (809.1)
Effect of exchange rate changes on cash and cash equivalents
— — — (.6)— (.6)
DECREASE IN CASH AND CASH EQUIVALENTS(127.3)— (2.7)(15.6)— (145.6)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
199.8 — 2.7 72.6 — 275.1 
CASH AND CASH EQUIVALENTS, END OF PERIOD
$72.5 $— $— $57.0 $— $129.5