Chapter 11 Proceedings and Ability to Continue as a Going Concern (Tables)

12 Months Ended

Dec. 31, 2020

Schedule Of Reorganization Items In Consolidated Statement of Operations And Cash Flow

The following table provides information about reorganization items incurred during the year ended December 31, 2020, as of or subsequent to the Petition Date (in millions):


	Year Ended December 31, 2020
Write-off of unamortized debt discounts, premiums and issuance costs	$	447.9
Contract items	(11.5)
Reorganization items (non-cash)	436.4


DIP Facility fees	20.0
Professional fees	66.8
Contract items	4.4
Reorganization items (fees)	91.2
Total reorganization items, net	$	527.6

Reorganization items (fees) unpaid	$	61.2
Reorganization items (fees) paid	$	30.0

Schedule Of Liabilities Subject to Compromise

Liabilities subject to compromise at December 31, 2020 consist of the following (in millions):


	December 31, 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

(In millions)


	Year Ended December 31, 2020
OPERATING REVENUES
Operating revenues	$	1,185.1
Operating revenues from non-debtor subsidiaries	169.8
Total operating revenues	1,354.9
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	1,203.0
Loss on impairment	3,643.9
Depreciation	507.5
General and administrative	213.6
Operating expenses for non-debtor subsidiaries	169.1
Total operating expenses	5,737.1
OTHER OPERATING INCOME	118.1
EQUITY IN LOSSES OF ARO	(7.8)
OPERATING LOSS	(4,271.9)
OTHER INCOME (EXPENSE)
Interest income	19.7
Interest income for non-debtor subsidiaries	285.7
Interest expense, net	(290.8)
Interest Expense for non-debtor subsidiaries	(310.9)
Reorganization items, net	(527.6)

Other, net	(6.7)
	(830.6)
LOSS BEFORE INCOME TAXES	(5,102.5)
EQUITY IN EARNINGS OF SUBSIDIARIES	11.4



PROVISION (BENEFIT) FOR INCOME TAXES	(277.5)
NET LOSS	$	(4,813.6)

Debtor-in-Possession, Condensed Balance Sheet

VALARIS PLC AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES

(DEBTOR-IN-POSSESSION)

CONDENSED COMBINED BALANCE SHEET

(In millions)


	December 31, 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	228.9
Accounts receivable, net	382.5
Accounts receivable from non-debtor subsidiaries	2,812.0
Other current assets	377.4
Total current assets	3,800.8
PROPERTY AND EQUIPMENT, AT COST	12,256.1
Less accumulated depreciation	1,973.8
Property and equipment, net	10,282.3
LONG-TERM NOTES RECEIVABLE FROM ARO	442.7
LONG-TERM NOTES RECEIVABLE FROM NON-DEBTOR SUBSIDIARIES	2,205.3
INVESTMENT IN ARO	120.9
INVESTMENTS IN NON-DEBTOR SUBSIDIARIES	585.9
OTHER ASSETS	158.2
	$	17,596.1
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade	$	149.4
Accrued liabilities and other	196.2



Total current liabilities	345.6

LONG-TERM NOTES PAYABLE TO NON-DEBTOR SUBSIDIARIES	2,548.6
OTHER LIABILITIES	602.3
Total liabilities not subject to compromise	3,496.5
Liabilities subject to compromise	7,313.7
Total debtors' equity	6,785.9
Total liabilities and debtors' equity	$	17,596.1

Debtor-in-Possession, Condensed Cash Flow Statement

VALARIS PLC AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES

(DEBTOR-IN-POSSESSION)

CONDENSED COMBINED STATEMENT OF CASH FLOWS

(In millions)


	Year Ended December 31, 2020
OPERATING ACTIVITIES
Net loss	$	(4,813.6)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on impairment	3,643.9
Depreciation expense	507.5
Non cash reorganization items, net	436.4
Deferred income tax benefit	(107.5)
Debtor in Possession financing fees and payments on Backstop Agreement	40.0
Debt discounts and other	36.8
Share-based compensation expense	21.4
Equity in earnings of non-debtor subsidiaries	(11.4)
Equity in losses of ARO	7.8
(Gain on) adjustment to bargain purchase	6.3
Amortization, net	6.2
Gain on extinguishment of debt	(3.1)
Other	17.5
Changes in operating assets and liabilities	(44.5)

Changes in advances (to)/from non-debtor subsidiaries	(74.0)
Net cash used in operating activities	(330.3)
INVESTING ACTIVITIES
Additions to property and equipment	(93.8)
Net proceeds from disposition of assets	51.8




Net cash used in investing activities	(42.0)
FINANCING ACTIVITIES
Borrowings on credit facility	596.0
Debtor in Possession financing fees and payments on Backstop Agreement	(40.0)
Repayments of credit facility borrowings	(15.0)
Reduction of long-term borrowings	(9.7)

Other	(1.8)
Net cash provided by financing activities	529.5
Effect of exchange rate changes on cash and cash equivalents	—
INCREASE IN CASH AND CASH EQUIVALENTS	157.2
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	71.7
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	228.9