XML 39 R26.htm IDEA: XBRL DOCUMENT
v3.21.2

Fresh Start Accounting (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2021
Reorganizations [Abstract] |
Schedule of Fresh Start Accounting | The following table reconciles the enterprise value to the estimated fair value of Successor Common Shares as of the Effective Date (in millions, except per share value):
| April 30, 2021
Enterprise Value | $ | 1,860.0 |
Plus: Cash and cash equivalents | 607.6 |
Less: Fair value of debt | (544.8) |
Less: Warrants | (16.4) |
Less: Noncontrolling interest | 1.1 |
Less: Pension and other post retirement benefits liabilities | (189.0) |
Less: Adjustments not contemplated in Enterprise Value | (639.0) |
Fair value of Successor Common Shares | $ | 1,079.5 |
Shares issued upon emergence | 75 |
Per share value | $ | 14.39 |
The following table reconciles the enterprise value to the reorganization value as of the Effective Date (in millions):
| April 30, 2021
Enterprise Value | $ | 1,860.0 |
Plus: Cash and cash equivalents | 607.6 |
Plus: Non-interest bearing current liabilities | 346.0 |
Less: Adjustments not contemplated in Enterprise Value | (218.0) |
Reorganization value of Successor assets | $ | 2,595.6 |
| As of April 30, 2021
| Predecessor |  | Reorganization Adjustments |  | Fresh Start Accounting Adjustments |  | Successor
ASSETS
CURRENT ASSETS |  |  |  |  |  |  |
Cash and cash equivalents | $ | 280.2 |  |  | $ | 327.4 |  | (a) | $ | — |  |  | $ | 607.6 |
Restricted cash | 45.7 |  |  | 42.7 |  | (b) | — |  |  | 88.4 |
Accounts receivable, net | 425.9 |  |  | — |  |  | — |  |  | 425.9 |
Other current assets | 370.1 |  |  | 1.5 |  | (c) | (281.1) |  | (o) | 90.5 |
Total current assets | 1,121.9 |  |  | 371.6 |  |  | (281.1) |  |  | 1,212.4 |
PROPERTY AND EQUIPMENT, NET | 10,026.4 |  |  | (417.6) |  | (d) | (8,699.7) |  | (p) | 909.1 |
LONG-TERM NOTES RECEIVABLE FROM ARO | 442.7 |  |  | — |  |  | (214.4) |  | (q) | 228.3 |
INVESTMENT IN ARO | 123.9 |  |  | — |  |  | (43.4) |  | (r) | 80.5 |
OTHER ASSETS | 166.4 |  |  | (10.0) |  | (e) | 8.9 |  | (s) | 165.3 |
| $ | 11,881.3 |  |  | $ | (56.0) |  |  | $ | (9,229.7) |  |  | $ | 2,595.6 |
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES |  |  |  |  |  |  |
Accounts payable - trade | $ | 161.5 |  |  | $ | 13.1 |  | (f) | $ | (0.5) |  | (t) | $ | 174.1 |
Accrued liabilities and other | 290.7 |  |  | (12.4) |  | (g) | (61.8) |  | (u) | 216.5 |
Total current liabilities | 452.2 |  |  | 0.7 |  |  | (62.3) |  |  | 390.6 |
LONG-TERM DEBT | — |  |  | 544.8 |  | (h) | — |  |  | 544.8 |
OTHER LIABILITIES | 706.2 |  |  | (55.2) |  | (i) | (85.6) |  | (v) | 565.4 |
Total liabilities not subject to compromise | 1,158.4 |  |  | 490.3 |  |  | (147.9) |  |  | 1,500.8 |
LIABILITIES SUBJECT TO COMPROMISE | 7,313.7 |  |  | (7,313.7) |  | (j) | — |  |  | — |
COMMITMENTS AND CONTINGENCIES |  |  |  |  |  |  |
VALARIS SHAREHOLDERS' EQUITY |  |  |  |  |  |  |
Predecessor Class A ordinary shares | 82.5 |  |  | (82.5) |  | (k) | — |  |  | — |
Predecessor Class B ordinary shares | 0.1 |  |  | (0.1) |  | (k) | — |  |  | — |
Successor common shares | — |  |  | 0.8 |  | (l) | — |  |  | 0.8 |
Successor stock warrants | — |  |  | 16.4 |  | (m) | — |  |  | 16.4 |
Predecessor additional paid-in capital | 8,644.0 |  |  | (8,644.0) |  | (k) | — |  |  | — |
Successor additional paid-in capital | — |  |  | 1,078.7 |  | (l) | — |  |  | 1,078.7 |
Retained deficit | (5,147.4) |  |  | 14,322.6 |  | (n) | (9,175.2) |  | (w) | — |
Accumulated other comprehensive loss | (93.4) |  |  | — |  |  | 93.4 |  | (x) | — |
Predecessor treasury shares | (75.5) |  |  | 75.5 |  | (k) | — |  |  | — |
Total Valaris shareholders' equity | 3,410.3 |  |  | 6,767.4 |  |  | (9,081.8) |  |  | 1,095.9 |
NONCONTROLLING INTERESTS | (1.1) |  |  | — |  |  | — |  |  | (1.1) |
Total equity | 3,409.2 |  |  | 6,767.4 |  |  | (9,081.8) |  |  | 1,094.8 |
| $ | 11,881.3 |  |  | $ | (56.0) |  |  | $ | (9,229.7) |  |  | $ | 2,595.6 |
Cash Represents the reorganization adjustments (in millions):
Receipt of cash for First Lien Notes | $ | 500.0 |
Loan proceeds from backstop lenders | 20.0 |
Funds received for liquidation of rabbi trust related to certain employee benefits | 17.6 |
PaymentsPayments to Predecessor Creditors | (129.9) |
Transfer of funds for payment of certain professional fees to escrow account | (42.7) |
Payment for certain professional services fees | (29.0) |
Various other | (8.6) |
| $ | 327.4 |
Other assets Represents the reorganization adjustments (in millions):
Liquidation of rabbi trust related to certain employee benefits | $ | (17.6) |
Elimination of right-of-use asset associated with Newbuild Rigs | (5.5) |
Fair value of options to purchase Newbuild Rigs | 13.1 |
| $ | (10.0) |
Reflects the following reorganization adjustments (in millions):
Professional fees incurred upon emergence | $ | 26.1 |
Payment of professional fees incurred prior to emergence | (12.6) |
Payment of certain accounts payable incurred prior to emergence | (0.4) |
| $ | 13.1 |
Accrued liabilities and other Reflects the following reorganization adjustments (in millions):
Elimination of lease liabilities associated with Newbuild Rigs | $ | (5.0) |
Elimination of accrued post-petition holding costs associated with Newbuild Rigs | (4.1) |
Payment of certain accrued liabilities incurred prior to emergence | (3.3) |
| $ | (12.4) |
Other liabilities Reflects the following reorganization adjustments (in millions):
Elimination of construction contract intangible liabilities associated with Newbuild Rigs | $ | (49.9) |
Elimination of accrued post-petition holding costs associated with Newbuild Rigs | (4.7) |
Elimination of lease liabilities associated with Newbuild Rigs | (0.6) |
| $ | (55.2) |
Liabilities subject to compromise Reflects the following reorganization adjustments (in millions):
Settlement of liabilities subject to compromise | $ | 7,313.7 |
Issuance of common stock to Predecessor creditors | (721.0) |
Issuance of common stock to backstop parties | (323.8) |
Payment to Predecessor creditors | (129.9) |
Gain on settlement of liabilities subject to compromise | $ | 6,139.0 |
Represents the reorganization adjustments to total equity as follows (in millions):
Gain on settlement of liabilities subject to compromise | $ | (6,139.0) |
Issuance of Common Shares for backstop premium | 29.1 |
Issuance of Common Shares to the Shipyard | 5.4 |
Write-off of unrecognized share-based compensation expense | 16.0 |
Professional fees and success fees | 35.9 |
Backstop premium | 30.0 |
Impact of newbuild contract amendments | 350.7 |
Reorganization items, net | (5,671.9) |
Cancellation of Predecessor common shares | (82.6) |
Cancellation of Predecessor treasury shares | 75.5 |
Cancellation of Predecessor additional paid in capital | (7,856.4) |
Cancellation of equity component of Predecessor convertible notes | (220.0) |
Cancellation of Predecessor cash and equity compensation plans | (583.6) |
Fair value of Warrants | 16.4 |
| $ | (14,322.6) |
Other current assets Reflects the fresh start adjustments to record the estimated fair value of other current assets as follows (in millions):
Elimination of materials and supplies | $ | (260.8) |
Elimination of historical deferred contract drilling expenses | (20.3) |
| $ | (281.1) |
Other assets Reflects the fresh start adjustments to record the estimated fair value of other assets as follows (in millions):
Deferred tax impacts of certain fresh start adjustments | $ | 21.1 |
Fair value of contracts with customers | 8.5 |
Fair value adjustments to right-of-use assets | 0.4 |
Elimination of historical deferred contract drilling expenses | (16.5) |
Elimination of other deferred costs | (4.6) |
| $ | 8.9 |
Accrued liabilities and other Reflects the fresh start adjustments to record the estimated fair value of current liabilities as follows (in millions):
Elimination of customer payable balance | $ | (36.8) |
Elimination of historical deferred revenues | (25.9) |
Fair value of contracts with customers | 0.5 |
Fair value adjustment to lease liabilities | 0.4 |
| $ | (61.8) |
Other liabilities Reflects the fresh start adjustments to record the estimated fair value of other liabilities as follows (in millions):
Adjustment to fair value of pension and other post-retirement plan liabilities | $ | (82.7) |
Elimination of historical deferred revenue | (5.9) |
Deferred tax impacts of certain fresh start adjustments | 1.7 |
Fair value adjustments to lease liabilities | 1.1 |
Fair value adjustments to other liabilities | 0.2 |
| $ | (85.6) |
Reflects the fresh start adjustments to retained deficit as follows (in millions):
Fair value adjustments to prepaid and other current assets | $ | (281.1) |
Fair value adjustments to property | (8,699.7) |
Fair value of intangible assets | 8.5 |
Fair value adjustment to investment in ARO | (43.4) |
Fair value adjustment to note receivable from ARO | (214.4) |
Fair value adjustments to other assets | (20.7) |
Fair value adjustments to other current liability | 62.8 |
Fair value of intangible liabilities | (0.5) |
Fair value adjustment to other liabilities | 87.3 |
Elimination of Predecessor accumulated other comprehensive loss | (93.4) |
Total fresh start adjustments included in reorganization items, net | $ | (9,194.6) |
Tax impact of fresh start adjustments | 19.4 |
| $ | (9,175.2) |

X
- References No definition available. + Details
Name: | us-gaap_ReorganizationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of reorganization under Chapter 11 of Bankruptcy Code. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -SubTopic 10 -Section 55 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -SubTopic 10 -Section 50 -Paragraph 7 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=124433192&loc=SL2890621-112765 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -SubTopic 10 -Section 50 -Paragraph 7 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=124433192&loc=SL2890621-112765 + Details
Name: | us-gaap_ScheduleOfFreshStartAdjustmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration