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

3 Months Ended

Mar. 31, 2021

Reorganizations [Abstract]

Schedule Of Reorganization Items

The following table provides information about reorganization items incurred during the three months ended March 31, 2021 (in millions):

												Three Months Ended March 31, 2021
Professional fees												$	47.8
Contract items												3.9
Reorganization items (fees)												51.7
Contract items												.5
Reorganization items (non-cash)												.5
Total reorganization items, net												$	52.2
Reorganization items (fees) unpaid												$	35.8
Reorganization items (fees) paid												$	15.9

Schedule Of Liabilities Subject to Compromise

Liabilities subject to compromise at March 31, 2021 and December 31, 2020 consist of the following (in millions):

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 March 31,
			2021
OPERATING REVENUES
Operating revenues			$	250.1
Operating revenues from non-debtor subsidiaries			20.6
Total operating revenues			270.7
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)			207.7
Loss on impairment			756.5
Depreciation			113.9
General and administrative			24.2
Operating expenses for non-debtor subsidiaries			17.7
Total operating expenses			1,120.0
EQUITY IN EARNINGS OF ARO			1.9
OPERATING LOSS			(847.4)
OTHER INCOME (EXPENSE)
Interest income			2.6
Interest income for non-debtor subsidiaries			58.6
Interest expense, net			(1.3)
Interest expense for non-debtor subsidiaries			(66.4)
Reorganization items, net			(52.2)
Other, net			18.9
			(39.8)
LOSS BEFORE INCOME TAXES			(887.2)
EQUITY IN LOSSES OF SUBSIDIARIES			(12.5)
PROVISION FOR INCOME TAXES			15.0
NET LOSS			$	(914.7)

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)

						March 31, 2021						December 31, 2020
						(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents						$	186.2					$	228.9
Accounts receivable, net						389.1						382.5
Accounts receivable from non-debtor subsidiaries						2,804.7						2,812.0
Other current assets						360.6						377.4
Total current assets						3,740.6						3,800.8
PROPERTY AND EQUIPMENT, AT COST						11,172.8						12,256.1
Less accumulated depreciation						1,758.8						1,973.8
Property and equipment, net						9,414.0						10,282.3
LONG-TERM NOTES RECEIVABLE FROM ARO						442.7						442.7
LONG-TERM NOTES RECEIVABLE FROM NON-DEBTOR SUBSIDIARIES						2,205.3						2,205.3
INVESTMENT IN ARO						122.8						120.9
INVESTMENTS IN NON-DEBTOR SUBSIDIARIES						573.4						585.9
OTHER ASSETS						151.9						158.2
						$	16,650.7					$	17,596.1
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade						$	152.1					$	149.4
Accrued liabilities and other						235.4						196.2
Total current liabilities						387.5						345.6
LONG-TERM NOTES PAYABLE TO NON-DEBTOR SUBSIDIARIES						2,548.6						2,548.6
OTHER LIABILITIES						531.3						602.3
Total liabilities not subject to compromise						3,467.4						3,496.5
Liabilities subject to compromise						7,313.7						7,313.7
Total debtors' equity						5,869.6						6,785.9
Total liabilities and debtors' equity						$	16,650.7					$	17,596.1

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)

						Three Months Ended March 31,
						2021
OPERATING ACTIVITIES
Net loss						$	(914.7)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on impairment						756.5
Depreciation expense						113.9
Equity in losses of non-debtor subsidiaries						12.5
Amortization, net						(4.6)
Share-based compensation expense						3.8
Equity in earnings of ARO						(1.9)
Other						.7
Changes in operating assets and liabilities						8.3
Contributions to pension plans and other post-retirement benefits						(22.2)
Changes in advances (to)/from non-debtor subsidiaries						7.3
Net cash used in operating activities						(40.4)
INVESTING ACTIVITIES
Additions to property and equipment						(6.0)
Net proceeds from disposition of assets						3.7
Net cash used in investing activities						(2.3)
DECREASE IN CASH AND CASH EQUIVALENTS						(42.7)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD						228.9
CASH AND CASH EQUIVALENTS, END OF PERIOD						$	186.2

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