Rowan Transaction (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The provisional amounts for assets acquired and liabilities assumed as of the Transaction Date and respective measurement period adjustments were as follows (in millions):


	Amounts Recognized as of Transaction Date		Measurement Period Adjustments (1)		Estimated Fair Value
Assets:
Cash and cash equivalents	$	931.9	$	—	$	931.9
Accounts receivable (2)	207.1		(6.9)		200.2
Other current assets	101.6		(2.6)		99.0
Long-term notes receivable from ARO	454.5		—		454.5
Investment in ARO	138.8		2.5		141.3
Property and equipment	2,989.8		(26.0)		2,963.8
Other assets	41.7		1.1		42.8
Liabilities:
Accounts payable and accrued liabilities	259.4		15.7		275.1
Current portion of long-term debt	203.2		—		203.2
Long-term debt	1,910.9		—		1,910.9
Other liabilities	376.3		34.5		410.8
Net assets acquired	2,115.6		(82.1)		2,033.5
Less: Merger consideration	(1,402.8)		—		(1,402.8)
Estimated bargain purchase gain	$	712.8	$	(82.1)	$	630.7

(1) The measurement period adjustments reflect changes in the estimated fair values of certain assets and liabilities, primarily related to long-lived assets, deferred income taxes and uncertain tax positions. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Transaction Date and did not result from subsequent intervening events. The adjustments recorded resulted in a $6.3 million decline to bargain purchase gain during the first quarter of 2020 and are included in other, net, in our condensed consolidated statements of operations for the nine months ended September 30, 2020.

(2) Gross contractual amounts receivable totaled $208.3 million as of the Transaction Date.

Business Acquisition, Pro Forma Information [Table Text Block]

The pro forma results do not include any potential synergies or non-recurring charges that may result directly from the Rowan Transaction.


(in millions, except per share amounts)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Revenues	$	552.0	$	1,729.5
Net loss	$	(136.0)	$	(788.2)
Loss per share - basic and diluted	$	(0.48)	$	(4.02)

(1) Pro forma net loss and loss per share were adjusted to exclude an aggregate $16.0 million and $85.4 million of transaction-related and integration costs incurred during the three and nine months ended September 30, 2019, respectively. Additionally, pro forma net loss and loss per share exclude the measurement period adjustments and estimated gain on bargain purchase of $53.0 million and $659.8 million recognized during the three and nine months ended September 30, 2019, respectively.