Shareholders Equity (Notes)

9 Months Ended

Sep. 30, 2021

Shareholders' Equity and Share-based Payments [Text Block]

Shareholders' Equity

Activity in our various shareholders' equity accounts for the three and five months ended September 30, 2021 (Successor), four months ended April 30, 2021 (Predecessor), and three and nine months ended September 30, 2020 (Predecessor) were as follows (in millions, except per share amounts):


	Shares	Par Value		Additional Paid-in Capital		Warrants		Retained Earnings (Deficit)		AOCI		Treasury Shares		Non-controlling Interest
BALANCE, December 31, 2020 (Predecessor)	206.1	$	82.6	$	8,639.9	$	—	$	(4,183.8)	$	(87.9)	$	(76.2)	$	(4.3)
Net loss	—	—		—		—		(910.0)		—		—		2.4
Shares issued under share-based compensation plans, net	—	—		(.2)		—		—		—		.2		—

Net changes in pension and other postretirement benefits	—	—		—		—		—		.1		—		—
Share-based compensation cost	—	—		3.8		—		—		—		—		—
Net other comprehensive loss	—	—		—		—		—		(5.4)		—		—
BALANCE, March 31, 2021 (Predecessor)	206.1	$	82.6	$	8,643.5	$	—	$	(5,093.8)	$	(93.2)	$	(76.0)	$	(1.9)
Net loss	—	—		—		—		(3,557.0)		—		—		.8
Shares issued under share-based compensation plans, net	—	—		(.5)		—		—		—		.5		—

Share-based compensation cost	—	—		1.0		—		—		—		—		—
Net other comprehensive loss	—	—		—		—		—		(.2)		—		—

Cancellation of Predecessor equity	(206.1)	(82.6)		(8,644.0)		—		8,650.8		93.4		75.5		—
Issuance of Successor Common Shares and Warrants	75.0	.8		1,078.7		16.4		—		—		—		—
BALANCE, April 30, 2021 (Predecessor)	75.0	$	.8	$	1,078.7	$	16.4	$	—	$	—	$	—	$	(1.1)


BALANCE, May 1, 2021 (Successor)	75.0	$	.8	$	1,078.7	$	16.4	$	—	$	—	$	—	$	(1.1)
Net loss	—	—		—		—		(6.2)		—		—		$	2.1
Net other comprehensive loss	—	—		—		—		—		(.2)		—		$	—
BALANCE, June 30, 2021 (Successor)	75.0	$	.8	$	1,078.7	$	16.4	$	(6.2)	$	(.2)	$	—	$	1.0
Net loss	—	—		—		—		(54.5)		—		—		1.7



Share-based compensation cost	—	—		1.6		—		—		—		—		—

BALANCE, September 30, 2021 (Successor)	75.0	.8		1,080.3		16.4		(60.7)		(.2)		—		2.7


	Shares	Par Value		Additional Paid-in Capital		Retained Earnings (Deficit)		AOCI		Treasury Shares		Non-controlling Interest
BALANCE, December 31, 2019 (Predecessor)	205.9	$	82.5	$	8,627.8	$	671.7	$	6.2	$	(77.3)	$	(1.3)
Net loss	—	—		—		(3,006.3)		—		—		(1.4)

Shares issued under share-based compensation plans, net	—	—		(.7)		—		—		.9		—
Repurchase of shares	—	—		—		—		—		(.9)		—
Share-based compensation cost	—	—		7.8		—		—		—		—
Net other comprehensive loss	—	—		—		—		(13.4)		—		—
BALANCE, March 31, 2020 (Predecessor)	205.9	$	82.5	$	8,634.9	$	(2,334.6)	$	(7.2)	$	(77.3)	$	(2.7)
Net loss	—	—		—		(1,107.4)		—		—		(1.4)

Shares issued under share-based compensation plans, net	.2	.1		(.7)		—		—		.6		—
Repurchase of shares	—	—		—		—		—		(.1)		—
Share-based compensation cost	—	—		5.7		—		—		—		—
Net other comprehensive loss	—	—		—		—		(6.1)		—		—
Distributions to noncontrolling interests	—	—		—		—		—		—		(.9)
BALANCE, June 30, 2020 (Predecessor)	206.1	$	82.6	$	8,639.9	$	(3,442.0)	$	(13.3)	$	(76.8)	$	(5.0)
Net loss	—	—		—		(670.9)		—		—		(1.1)
Shares issued under share-based compensation plans, net	—	—		(.5)		—		—		.5		—
Share-based compensation cost	—	—		4.3		—		—		—		—
Purchase of noncontrolling interests	—	—		(7.2)		—		—		—		—

Net other comprehensive income	—	—		—		—		2.1		—		—
BALANCE, September 30, 2020 (Predecessor)	206.1	$	82.6	$	8,636.5	$	(4,112.9)	$	(11.2)	$	(76.3)	$	(6.1)

Valaris Limited Share Capital

As of the Effective Date, the authorized share capital of Valaris Limited is $8.5 million divided into 700 million Common Shares of a par value of $0.01 each and 150 million preference shares of a par value of $0.01.

Issuance of Common Shares

On the Effective Date, pursuant to the plan of reorganization, we issued 75 million Common Shares.

Cancellation of Predecessor Equity and Issuance of Warrants

On the Effective Date and pursuant to the plan of reorganization, the Legacy Valaris Class A ordinary shares were cancelled and the Company issued 5,645,161 Warrants to the former holders of the Company's equity interests outstanding prior to the Effective Date. The Warrants are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant, in each case as may be adjusted from time to time pursuant to the applicable warrant agreement. The Warrants are exercisable for a period of seven years and will expire on April 29, 2028. The exercise of these Warrants into Common Shares would have a dilutive effect to the holdings of Valaris Limited's existing shareholders.

Management Incentive Plan

In accordance with the plan of reorganization, Valaris Limited adopted the 2021 Management Incentive Plan (the “MIP”) as of the Effective Date and authorized and reserved 8,960,573 Common Shares for issuance pursuant to equity incentive awards to be granted under the MIP, which may be in the form of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and cash awards or any combination thereof.