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Supplemental Financial Information

12 Months Ended

Dec. 31, 2021

Supplemental Financial Information [Abstract]

Supplemental Balance Sheet Disclosures [Text Block]

SUPPLEMENTAL FINANCIAL INFORMATION

Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Trade			$	296.8								$	260.1
Income tax receivables			151.1									190.6
Other			12.7									14.7
			460.6									465.4
Allowance for doubtful accounts			(16.4)									(16.2)
			$	444.2								$	449.2

Other current assets consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Prepaid taxes			$	44.4								$	32.9
Deferred costs			26.9									17.4
Prepaid expenses			23.1									43.4
Materials and supplies			—									279.4
Other			23.4									13.4
			$	117.8								$	386.5

Other assets consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Tax receivables			$	64.8								$	66.8
Deferred tax assets			59.7									21.9
Right-of-use assets			20.5									35.8
Supplemental executive retirement plan assets			—									22.6
Other			31.0									29.1
			$	176.0								$	176.2

Accrued liabilities and other consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Personnel costs			$	64.6								$	95.6
Income and other taxes payable			45.7									50.8
Deferred revenue			45.8									57.6
Lease liabilities			10.0									15.7
Accrued interest			7.6									—
Other			22.5									30.7
			$	196.2								$	250.4

Other liabilities consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Unrecognized tax benefits (inclusive of interest and penalties)			$	320.2								$	286.1
Pension and other post-retirement benefits			204.0									296.6
Intangible liabilities			—									50.4
Customer payable			—									35.5
Other			56.9									93.8
			$	581.1								$	762.4

Accumulated other comprehensive income (loss) consisted of the following (in millions):

			Successor									Predecessor
			December 31, 2021									December 31, 2020
Pension and other post-retirement benefits			$	(9.1)								$	(98.2)
Currency translation adjustment			—									6.5
Derivative instruments			—									5.6
Other			—									(1.8)
			$	(9.1)								$	(87.9)

Consolidated Statements of Operations Information

Repair and maintenance expense related to continuing operations was as follows (in millions):

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
Repair and maintenance expense			$	76.3								$	48.4		$	200.4		$	303.7

Other, net, consisted of the following (in millions):

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
Net gain on sale of property			$	21.2								$	6.0		$	11.8		$	1.8
Net periodic pension income, excluding service cost			8.7									5.4			14.6			5.8
Currency transaction adjustments			8.1									13.4			(11.0)			(7.4)
Gain on bargain purchase and measurement period adjustments			—									—			(6.3)			637.0
Gain on extinguishment of debt			—									—			3.1			194.1
SHI settlement			—									—			—			200.0
Settlement of legal dispute			—									—			—			(20.3)
Other income (expense)			0.1									1.1			3.8			(4.8)
			$	38.1								$	25.9		$	16.0		$	1,006.2

Consolidated Statements of Cash Flows Information

Our restricted cash of $35.9 million at December 31, 2021 (Successor) consists primarily of $31.1 million of collateral on letters of credit. See "Note 15 - Commitments and Contingencies" for more information regarding our letters of credit.

Net cash used in operating activities attributable to the net change in operating assets and liabilities was as follows (in millions):

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
(Increase) decrease in accounts receivable			$	(18.3)								$	23.2		$	53.3		$	29.5
(Increase) decrease in other assets			(48.4)									27.3			(63.8)			(56.6)
Increase (decrease) in liabilities			77.0									18.0			(11.5)			(25.4)
			$	10.3								$	68.5		$	(22.0)		$	(52.5)

Cash paid for interest and income taxes was as follows (in millions):

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
Interest, net of amounts capitalized			$	22.8								$	—		$	190.0		$	410.0
Income taxes			29.1									12.8			78.9			107.6

During the eight months ended December 31, 2021 (Successor) and during the four months ended April 30, 2021 (Predecessor), there was no capitalized interest. Capitalized interest totaled $1.3 million and $20.9 million during the years ended December 31, 2020 and 2019 (Predecessor), respectively.

Accruals for capital expenditures totaling $9.3 million and $6.5 million as of December 31, 2021 (Successor) and April 30, 2021 (Predecessor), respectively, were excluded from Investing activities in our Consolidated Statements of Cash Flows. Additionally, accruals for capital expenditures totaling $5.4 million and $16.3 million as of December 31, 2020 and 2019 (Predecessor), respectively, were excluded from Investing activities in our Consolidated Statements of Cash Flows. 

Amortization, net, includes amortization of deferred mobilization revenues and costs, deferred capital upgrade revenues, intangible amortization and other amortization.

Other adjustments to reconcile net loss to net cash used in operating activities includes provisions for inventory reserves, bad debt expense, and other items.

Concentration of Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents, and at times, investments. Previously, our use of derivatives in connection with the management of foreign currency exchange rate risk also subjected us to credit risk. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which generally have been within our expectations. We mitigate our credit risk relating to cash and investments by focusing on diversification and quality of instruments.

We mitigated our credit risk relating to counterparties of our previous derivatives through a variety of techniques, including transacting with multiple, high-quality financial institutions, thereby limiting our exposure to individual counterparties and by entering into International Swaps and Derivatives Association, Inc. ("ISDA") Master Agreements, which included provisions for a legally enforceable master netting agreement, with our derivative counterparties. The terms of the ISDA agreements may also have included credit support requirements, cross default provisions, termination events or set-off provisions. Legally enforceable master netting agreements reduce credit risk by providing protection in bankruptcy in certain circumstances and generally permitting the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. See "Note 10 - Derivative Instruments" for additional information on our previous derivative activity.

Consolidated revenues by customer were as follows:

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
BP (1)			11		%							14		%	11		%	9		%
Total(2)			9		%							—		%	8		%	16		%
Other			80		%							86		%	81		%	75		%
			100		%							100		%	100		%	100		%

(1)During the eight months ended December 31, 2021(Successor), 21% of the revenues provided by BP were attributable to our Floaters segment, 20% of the revenues provided by BP were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

During the four months ended April 30, 2021 (Predecessor), 37% of the revenues provided by BP were attributable to our Floaters segment, 17% of the revenues provided by BP were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

For the year ended December 31, 2020 (Predecessor), 30% of the revenues provided by BP were attributable to our Floaters segment, 19% were attributable to our Jackups segment, and 51% of the revenues were attributable to our managed rigs.

For the year ended December 31, 2019 (Predecessor), 41% of the revenues provided by BP were attributable to our Jackups segment, 16% of the revenues were attributable to our Floaters segment and 43% of the revenues were attributable to our managed rigs.

(2)During the eight months ended December 31, 2021 (Successor), all of the revenues provided by Total were attributable to the Floaters segment.

For the years ended December 31, 2020 and 2019 (Predecessor), 71% and 93% of the revenues provided by Total were attributable to the Floaters segment and the remainder was attributable to the Jackup segment.

For purposes of our geographic disclosure, we attribute revenues to the geographic location where such revenues are earned. Consolidated revenues by region were as follows (in millions):

			Successor									Predecessor
			Eight Months Ended December 31, 2021									Four Months Ended April 30, 2021			Year Ended December 31, 2020			Year Ended December 31, 2019
United Kingdom(1)			$	185.2								$	75.7		$	211.3		$	213.1
Norway(1)			123.9									73.3			188.5			39.2
U.S. Gulf of Mexico(2)			109.9									74.4			241.4			301.0
Saudi Arabia(3)			92.3									53.6			200.8			313.4
Mexico(4)			77.8									44.3			112.1			73.0
Angola(5)			19.4									20.5			86.3			284.0
Other			226.5									55.6			386.8			829.5
			$	835.0								$	397.4		$	1,427.2		$	2,053.2

(1)During the eight months ended December 31, 2021 (Successor), four months ended April 30, 2021 (Predecessor) and for the years ended December 31, 2020 and 2019 (Predecessor) all revenues earned in the United Kingdom and Norway were attributable to our Jackups segment.

(2)During the eight months ended December 31, 2021 (Successor), 48% and 1% of the revenues earned in the U.S. Gulf of Mexico, were attributable to our Floaters segment and Jackups segment, respectively. The remaining revenues were attributable to our managed rigs. During the four months ended April 30, 2021 (Predecessor), 64% of the revenues earned in the U.S. Gulf of Mexico, were attributable to our Floaters segment. The remaining revenues were attributable to our managed rigs.

For the years ended December 31, 2020 and 2019 (Predecessor), 55% and 46% of the revenues earned in the U.S. Gulf of Mexico, respectively, were attributable to our Floaters segment, 11% and 28% of the revenues were attributable to our Jackups segment, for the respective periods, and the remaining revenues were attributable to our managed rigs.

(3)During the eight months ended December 31, 2021(Successor) and four months ended April 30, 2021 (Predecessor), 60% and 57% of the revenues earned in Saudi Arabia, respectively were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates to our rigs leased to ARO and certain revenues related to our Secondment Agreement.

For the years ended December 31, 2020 and 2019 (Predecessor), 63% and 65% of the revenues earned in Saudi Arabia, respectively, were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and related to our rigs leased to ARO and certain revenues related to our Secondment Agreement and Transition Services Agreement.

(4)During the eight months ended December 31, 2021 (Successor), 52% of the revenues earned in Mexico were attributable to our Jackups segment and the remaining revenues were attributable to our Floaters segment. During the four months ended April 30, 2021 (Predecessor), 51% of the revenues earned in Mexico were attributable to our Jackups segment and the remaining revenues were attributable to our Floaters segment.

For the year ended December 31, 2020 (Predecessor), 54% of the revenues earned in Mexico were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment. For the year ended December 31, 2019 (Predecessor), all revenues earned in Mexico were attributable to our Floaters segment.

(5) During the eight months ended December 31, 2021 (Successor) and the four months ended April 30, 2021 (Predecessor), all the revenues earned in Angola were attributable to our Floaters Segment.

For the years ended December 31, 2020 and 2019 (Predecessor), 84% and 87% of the revenues earned in Angola, respectively, were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment.

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- Definition

The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-URI http://asc.fasb.org/topic&trid=2122208

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Supplemental Financial Information [Abstract]

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