Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Spin-off of Paragon Offshore plc (“Paragon Offshore”)

Note 3 - Discontinued Operations

Paragon Offshore, which had been reflected as continuing operations in our consolidated financial statements prior to the Spin-off, meets the criteria for being reported as discontinued operations and has been reclassified as such in our results of operations. The results of discontinued operations for 2014 and 2013 include the historical results of Paragon Offshore through the Spin-off date, including costs incurred by Noble to complete the Spin-off. Non-recurring Spin-off related costs totaled $63 million and $18 million for the years ended December 31, 2014 and 2013, respectively. There was no activity related to discontinued operations during the year ended December 31, 2015.

Prior to the Spin-off, Paragon Offshore issued approximately $1.7 billion of debt consisting of:

· $1.08 billion aggregate principal amount of senior notes in two separate tranches, comprising $500 million of 6.75% Senior Notes due 2022 and $580 million of 7.25% Senior Notes due 2024; and

· $650 million of a senior secured term credit agreement, at an interest rate of LIBOR plus 2.75%, subject to a LIBOR floor of 1%, which has an initial term of seven years.

We allocated interest expense on the above debt, which is directly related to Paragon Offshore, to discontinued operations. For the year ended December 31, 2014, we allocated approximately $4 million of interest expense related to such debt. No interest was allocated to discontinued operations for the year ended December 31, 2013.

The following table provides the results of operations from discontinued operations:

	2014			2013
Operating revenues
Contract drilling services	$	993,253		$	1,615,325
Reimbursables		21,899			45,582
Labor contract drilling services		19,304			35,146
Other		2			94
Operating revenues from discontinued operations	$	1,034,458		$	1,696,147
Income from discontinued operations
Income from discontinued operations before income    taxes	$	216,391		$	379,591
Income tax provision		(55,889	)		(75,489	)
Net income from discontinued operations, net of tax	$	160,502		$	304,102