Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor Obligations

Noble-Cayman, or one or more 100 percent owned subsidiaries of Noble-Cayman, is a co-issuer or full and unconditional guarantor or otherwise obligated as of September 30, 2017 as follows:

	Issuer
Notes	(Co-Issuer(s))	Guarantor
$250 million 5.75% Senior Notes due 2018	NHIL	Noble-Cayman
$202 million 7.50% Senior Notes due 2019	NHUS	Noble-Cayman
	Noble Drilling Holding, LLC (“NDH” )
	Noble Drilling Services 6 LLC (“NDS6”)
$168 million 4.90% Senior Notes due 2020	NHIL	Noble-Cayman
$209 million 4.625% Senior Notes due 2021	NHIL	Noble-Cayman
$126 million 3.95% Senior Notes due 2022	NHIL	Noble-Cayman
$1 billion 7.75% Senior Notes due 2024	NHIL	Noble-Cayman
$450 million 7.70% Senior Notes due 2025	NHIL	Noble-Cayman
$400 million 6.20% Senior Notes due 2040	NHIL	Noble-Cayman
$400 million 6.05% Senior Notes due 2041	NHIL	Noble-Cayman
$500 million 5.25% Senior Notes due 2042	NHIL	Noble-Cayman
$400 million 8.70% Senior Notes due 2045	NHIL	Noble-Cayman

Condensed Consolidating Balance Sheet

The following condensed consolidating financial statements of Noble-Cayman, NHUS, NDH, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2017

(in thousands)

(Unaudited)

	Noble - Cayman		NHUS		NDH			NHIL		NDS6		Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	13	$	—	$	39		$	57	$	—	$	607,849		$	—		$	607,958
Accounts receivable	—		—		23,936			—		—		178,597			—			202,533
Taxes receivable	—		29,357		3			—		—		26,034			—			55,394
Short-term notes receivable from affiliates	—		—		119,476			—		2,373,452		—			(2,492,928		)	—
Accounts receivable from affiliates	593,643		1,454		124,519			60,945		411,853		5,780,487			(6,972,901		)	—
Prepaid expenses and other current assets	96		—		967			19		1		72,566			—			73,649
Total current assets	593,752		30,811		268,940			61,021		2,785,306		6,665,533			(9,465,829		)	939,534
Property and equipment, at cost	—		—		1,071,989			—		—		11,349,776			—			12,421,765
Accumulated depreciation	—		—		(260,496		)	—		—		(2,449,002		)	—			(2,709,498		)
Property and equipment, net	—		—		811,493			—		—		8,900,774			—			9,712,267
Notes receivable from affiliates	3,177,249		—		1,077,773			—		3,943,299		1,173,281			(9,371,602		)	—
Investments in affiliates	4,941,085		4,601,780		5,340,411			12,539,320		7,254,988		—			(34,677,584		)	—
Other assets	3,046		16,775		6,026			—		—		218,901			—			244,748
Total assets	$	8,715,132	$	4,649,366	$	7,504,643		$	12,600,341	$	13,983,593	$	16,958,489		$	(53,515,015	)	$	10,896,549
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	—		1,605,243		—			249,652		—		887,685			(2,492,928		)	249,652
Accounts payable	—		—		2,004			—		—		81,871			—			83,875
Accrued payroll and related costs	—		—		4,959			—		—		41,885			—			46,844
Accounts payable to affiliates	3,407,065		391,266		1,802,128			553,930		—		818,512			(6,972,901		)	—
Taxes payable	—		—		1			—		—		53,202			—			53,203
Interest payable	2,211		—		—			53,833		8,236		—			—			64,280
Other current liabilities	16		—		945			—		—		95,827			—			96,788
Total current liabilities	3,409,292		1,996,509		1,810,037			857,415		8,236		1,978,982			(9,465,829		)	594,642
Long-term debt	—		—		—			3,593,814		201,513		—			—			3,795,327
Notes payable to affiliates	—		700,000		472,620			3,175,662		—		5,023,320			(9,371,602		)	—
Deferred income taxes	—		—		—			—		—		253,444			—			253,444
Other liabilities	19,929		—		10,774			—		—		258,627			—			289,330
Total liabilities	3,429,221		2,696,509		2,293,431			7,626,891		209,749		7,514,373			(18,837,431		)	4,932,743
Commitments and contingencies
Total shareholder equity	5,285,911		1,952,857		5,211,212			4,973,450		13,773,844		8,766,221			(34,677,584		)	5,285,911
Noncontrolling interests	—		—		—			—		—		677,895			—			677,895
Total equity	5,285,911		1,952,857		5,211,212			4,973,450		13,773,844		9,444,116			(34,677,584		)	5,963,806
Total liabilities and equity	$	8,715,132	$	4,649,366	$	7,504,643		$	12,600,341	$	13,983,593	$	16,958,489		$	(53,515,015	)	$	10,896,549

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016

(in thousands)

(Unaudited)

	Noble- Cayman		NHUS		NDH			NHIL		NDS6		Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	2,537	$	—	$	10,855		$	—	$	—	$	640,441		$	—		$	653,833
Accounts receivable	—		—		33,162			—		—		285,990			—			319,152
Taxes receivable	—		21,428		—			—		—		34,052			—			55,480
Short-term notes receivable from affiliates	—		—		243,915			—		1,349,708		52,611			(1,646,234		)	—
Accounts receivable from affiliates	361,313		—		137,476			67,560		85,274		3,038,658			(3,690,281		)	—
Prepaid expenses and other current assets	270		—		1,611			—		—		86,868			—			88,749
Total current assets	364,120		21,428		427,019			67,560		1,434,982		4,138,620			(5,336,515		)	1,117,214
Property and equipment, at cost	—		—		2,376,862			—		—		9,988,026			—			12,364,888
Accumulated depreciation	—		—		(428,308		)	—		—		(1,874,632		)	—			(2,302,940		)
Property and equipment, net	—		—		1,948,554			—		—		8,113,394			—			10,061,948
Notes receivable from affiliates	3,304,672		—		112,706			69,564		5,000		1,798,614			(5,290,556		)	—
Investments in affiliates	2,848,855		2,007,016		1,411,874			8,369,728		6,129,082		—			(20,766,555		)	—
Other assets	4,292		—		5,687			—		—		168,573			—			178,552
Total assets	$	6,521,939	$	2,028,444	$	3,905,840		$	8,506,852	$	7,569,064	$	14,219,201		$	(31,393,626	)	$	11,357,714
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables to affiliates	$	—	$	171,925	$	—		$	—	$	—	$	1,474,309		$	(1,646,234	)	$	—
Current maturities of long-term debt	—		—		—			299,882		—		—			—			299,882
Accounts payable	—		—		4,228			—		—		103,640			—			107,868
Accrued payroll and related costs	—		—		4,882			—		—		43,437			—			48,319
Accounts payable to affiliates	818,737		111,801		1,995,788			123,642		—		640,313			(3,690,281		)	—
Taxes payable	—		—		—			—		—		46,561			—			46,561
Interest payable	48		—		—			56,839		4,412		—			—			61,299
Other current liabilities	12		—		4,296			—		—		63,004			—			67,312
Total current liabilities	818,797		283,726		2,009,194			480,363		4,412		2,371,264			(5,336,515		)	631,241
Long-term debt	—		—		—			3,838,807		201,422		—			—			4,040,229
Notes payable to affiliates	—		700,000		467,139			744,181		—		3,379,236			(5,290,556		)	—
Deferred income taxes	—		—		534			—		—		1,550			—			2,084
Other liabilities	19,929		—		24,035			—		—		248,219			—			292,183
Total liabilities	838,726		983,726		2,500,902			5,063,351		205,834		6,000,269			(10,627,071		)	4,965,737
Commitments and contingencies
Total shareholder equity	5,683,213		1,044,718		1,404,938			3,443,501		7,363,230		7,106,323			(20,362,710		)	5,683,213
Noncontrolling interests	—		—		—			—		—		1,112,609			(403,845		)	708,764
Total equity	5,683,213		1,044,718		1,404,938			3,443,501		7,363,230		8,218,932			(20,766,555		)	6,391,977
Total liabilities and equity	$	6,521,939	$	2,028,444	$	3,905,840		$	8,506,852	$	7,569,064	$	14,219,201		$	(31,393,626	)	$	11,357,714

Condensed Consolidating Statement of Income

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30, 2017

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	37,675		$	—		$	—		$	231,873		$	(9,808	)	$	259,740
Reimbursables and other	—			—			863			—			—			5,609			—			6,472
Total operating revenues	—			—			38,538			—			—			237,482			(9,808		)	266,212
Operating costs and expenses
Contract drilling services	67			3,056			10,306			852			—			160,095			(9,808		)	164,568
Reimbursables	—			—			490			—			—			3,344			—			3,834
Depreciation and amortization	—			—			13,971			—			—			122,680			—			136,651
General and administrative	28			1,229			—			371			—			8,195			—			9,823
Total operating costs and expenses	95			4,285			24,767			1,223			—			294,314			(9,808		)	314,876
Operating income (loss)	(95		)	(4,285		)	13,771			(1,223		)	—			(56,832		)	—			(48,664		)
Other income (expense)
Income (loss) of unconsolidated affiliates	(88,898		)	(64,360		)	7,347			22,238			(20,878		)	—			144,551			—
Interest income (expense), net of amounts capitalized	(2,592		)	(4,492		)	(3,533		)	(108,892		)	(3,813		)	(24,877		)	75,312			(72,887		)
Interest income and other, net	1,602			(50		)	16,273			(52		)	53,897			3,916			(75,312		)	274
Income (loss) before income taxes	(89,983		)	(73,187		)	33,858			(87,929		)	29,206			(77,793		)	144,551			(121,277		)
Income tax benefit (provision)	—			53,957			(19		)	—			—			(25,333		)	—			28,605
Net income (loss)	(89,983		)	(19,230		)	33,839			(87,929		)	29,206			(103,126		)	144,551			(92,672		)
Net (income) loss attributable to noncontrolling interests	—			—			—			—			—			3,867			(1,178		)	2,689
Net income (loss) attributable to Noble Corporation	(89,983		)	(19,230		)	33,839			(87,929		)	29,206			(99,259		)	143,373			(89,983		)
Other comprehensive income (loss), net	793			—			—			—			—			793			(793		)	793
Comprehensive income (loss) attributable to Noble Corporation	$	(89,190	)	$	(19,230	)	$	33,839		$	(87,929	)	$	29,206		$	(98,466	)	$	142,580		$	(89,190	)

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

Nine Months Ended September 30, 2017

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	124,767		$	—		$	—		$	798,085		$	(36,921	)	$	885,931
Reimbursables and other	—			—			2,891			—			—			18,508			—			21,399
Total operating revenues	—			—			127,658			—			—			816,593			(36,921		)	907,330
Operating costs and expenses
Contract drilling services	202			8,989			34,492			2,505			—			477,174			(36,921		)	486,441
Reimbursables	—			—			1,782			—			—			11,592			—			13,374
Depreciation and amortization	—			—			44,491			—			—			362,511			—			407,002
General and administrative	99			4,074			—			1,263			9			26,673			—			32,118
Total operating costs and expenses	301			13,063			80,765			3,768			9			877,950			(36,921		)	938,935
Operating income (loss)	(301		)	(13,063		)	46,893			(3,768		)	(9		)	(61,357		)	—			(31,605		)
Other income (expense)
Income (loss) of unconsolidated affiliates - continuing operations	(469,274		)	(477,279		)	48,830			167,531			35,388			—			694,804			—
Income (loss) of unconsolidated affiliates - discontinued operations, net of tax	2,967			4,566			—			—			—			—			(7,533		)	—
Interest income (expense), net of amounts capitalized	(7,775		)	(28,348		)	(9,916		)	(322,580		)	(11,484		)	(105,324		)	265,884			(219,543		)
Interest income and other, net	8,880			(141		)	70,484			4,871			170,875			15,036			(265,884		)	4,121
Income (loss) from continuing operations before income taxes	(465,503		)	(514,265		)	156,291			(153,946		)	194,770			(151,645		)	687,271			(247,027		)
Income tax benefit (provision)	—			170,543			(345		)	—			—			(380,753		)	—			(210,555		)
Net income (loss) from continuing operations	(465,503		)	(343,722		)	155,946			(153,946		)	194,770			(532,398		)	687,271			(457,582		)
Net income (loss) from discontinuing operations, net of tax	—			(1,598		)	—			—			—			4,565			—			2,967
Net Income (loss)	(465,503		)	(345,320		)	155,946			(153,946		)	194,770			(527,833		)	687,271			(454,615		)
Net income attributable to noncontrolling interests	—			—			—			—			—			(8,894		)	(1,994		)	(10,888		)
Net income (loss) attributable to Noble Corporation	(465,503		)	(345,320		)	155,946			(153,946		)	194,770			(536,727		)	685,277			(465,503		)
Other comprehensive income (loss), net	2,579			—			—			—			—			2,579			(2,579		)	2,579
Comprehensive income (loss) attributable to Noble Corporation	$	(462,924	)	$	(345,320	)	$	155,946		$	(153,946	)	$	194,770		$	(534,148	)	$	682,698		$	(462,924	)

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF INCOME and COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30, 2016

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL				NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	52,333		$	—			$	—		$	331,916		$	(10,992	)	$	373,257
Reimbursables and other	—			—			2,933			—				—			8,963			—			11,896
Total operating revenues	—			—			55,266			—				—			340,879			(10,992		)	385,153
Operating costs and expenses
Contract drilling services	857			3,914			20,487			17,483				—			174,323			(10,992		)	206,072
Reimbursables	—			—			2,702			—				—			6,440			—			9,142
Depreciation and amortization	—			—			22,661			—				—			132,581			—			155,242
General and administrative	203			1,552			—			7,231				—			3,047			—			12,033
Loss on impairment	—			—			—			—				—			—			—			—
Total operating costs and expenses	1,060			5,466			45,850			24,714			—	—			316,391			(10,992		)	382,489
Operating income (loss)	(1,060		)	(5,466		)	9,416			(24,714		)		—			24,488			—			2,664
Other income (expense)
Income (loss) of unconsolidated affiliates	(49,010		)	17,529			(6,572		)	10,186				12,187			—			15,680			—
Interest expense, net of amounts capitalized	(2,472		)	(25,311		)	(2,872		)	(52,073		)		(3,258		)	(10,278		)	43,695			(52,569		)
Gain on extinguishment of debt, net	—			—			—			—				—			—			—			—
Interest income and other, net	1,666			30			2,816			525				6,046			33,180			(43,695		)	568
Income (loss) from continuing operations before income taxes	(50,876		)	(13,218		)	2,788			(66,076		)		14,975			47,390			15,680			(49,337		)
Income tax provision	—			(10,050		)	(167		)	—				—			19,524			—			9,307
Net income (loss)	(50,876		)	(23,268		)	2,621			(66,076		)		14,975			66,914			15,680			(40,030		)
Net (income) loss attributable to noncontrolling interests	—			—			—			—				—			(5,933		)	(4,913		)	(10,846		)
Net income (loss) attributable to Noble Corporation	(50,876		)	(23,268		)	2,621			(66,076		)		14,975			60,981			10,767			(50,876		)
Other comprehensive income (loss), net	701			—			—			—				—			701			(701		)	701
Comprehensive income (loss) attributable to Noble Corporation	$	(50,175	)	$	(23,268	)	$	2,621		$	(66,076	)		$	14,975		$	61,682		$	10,066		$	(50,175	)

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF INCOME and COMPREHENSIVE INCOME (LOSS)

Nine Months Ended September 30, 2016

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	169,379		$	—		$	—		$	1,728,374		$	(56,432	)	$	1,841,321
Reimbursables and other	—			—			6,301			—			—			44,987			—			51,288
Total operating revenues	—			—			175,680			—			—			1,773,361			(56,432		)	1,892,609
Operating costs and expenses
Contract drilling services	3,574			15,627			47,005			69,087			—			618,735			(56,432		)	697,596
Reimbursables	—			—			5,589			—			—			33,857			—			39,446
Depreciation and amortization	—			—			66,431			—			—			389,422			—			455,853
General and administrative	928			7,207			—			32,696			1			(4,341		)	—			36,491
Loss on impairment	—			—			—			—			—			16,616			—			16,616
Total operating costs and expenses	4,502			22,834			119,025			101,783			1			1,054,289			(56,432		)	1,246,002
Operating income (loss)	(4,502		)	(22,834		)	56,655			(101,783		)	(1		)	719,072			—			646,607
Other income (expense)
Income (loss) of unconsolidated affiliates	331,777			58,134			(64,854		)	640,942			610,992			—			(1,576,991		)	—
Interest income (expense), net of amounts capitalized	(25,256		)	(47,977		)	(8,436		)	(173,294		)	(11,722		)	(109,781		)	209,491			(166,975		)
Gain on extinguishment of debt, net	—			—			—			11,066			—			—			—			11,066
Interest income and other, net	94,974			80			9,719			19,885			6,808			76,657			(209,491		)	(1,368		)
Income (loss) from continuing operations before income taxes	396,993			(12,597		)	(6,916		)	396,816			606,077			685,948			(1,576,991		)	489,330
Income tax (provision) benefit	—			(43,788		)	(545		)	—			—			4,023			—			(40,310		)
Net income (loss)	396,993			(56,385		)	(7,461		)	396,816			606,077			689,971			(1,576,991		)	449,020
Net (income) loss attributable to noncontrolling interests	—			—			—			—			—			(70,980		)	18,953			(52,027		)
Net income (loss) attributable to Noble Corporation	396,993			(56,385		)	(7,461		)	396,816			606,077			618,991			(1,558,038		)	396,993
Other comprehensive income (loss), net	2,006			—			—			—			—			2,006			(2,006		)	2,006
Comprehensive income (loss) attributable to Noble Corporation	$	398,999		$	(56,385	)	$	(7,461	)	$	396,816		$	606,077		$	620,997		$	(1,560,044	)	$	398,999

Condensed Consolidating Statement of Cash Flows

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months EndedSeptember 30, 2017

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments		Total
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	26,122		$	102,689		$	141,843		$	(324,502	)	$	163,205		$	212,606		$	—	$	321,963
Cash flows from investing activities
Capital expenditures	—			—			(2,552		)	—			—			(84,148		)	—		(86,700		)
Proceeds from disposal of assets	—			—			46			—			—			1,260			—		1,306
Net cash used in investing activities	—			—			(2,506		)	—			—			(82,888		)	—		(85,394		)
Cash flows from financing activities
Repayment of long-term debt	—			—			—			(300,000		)	—			—			—		(300,000		)
Debt issuance costs on senior notes and credit facility	—			—			—			(42		)	—			—			—		(42		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(26,293		)	—		(26,293		)
Distributions to parent company, net	43,891			—			—			—			—			—			—		43,891
Advances (to) from affiliates	(72,537		)	(102,689		)	(150,153		)	624,601			(163,205		)	(136,017		)	—		—
Net cash provided by (used in) financing activities	(28,646		)	(102,689		)	(150,153		)	324,559			(163,205		)	(162,310		)	—		(282,444		)
Net change in cash and cash equivalents	(2,524		)	—			(10,816		)	57			—			(32,592		)	—		(45,875		)
Cash and cash equivalents, beginning of period	2,537			—			10,855			—			—			640,441			—		653,833
Cash and cash equivalents, end of period	$	13		$	—		$	39		$	57		$	—		$	607,849		$	—	$	607,958

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months EndedSeptember 30, 2016

(in thousands)

(Unaudited)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments		Total
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	91,918		$	(124,190	)	$	81,355		$	(278,331	)	$	(8,697	)	$	1,223,801		$	—	$	985,856
Cash flows from investing activities
Capital expenditures	—			—			(473,460		)	—			—			(159,813		)	—		(633,273		)
Proceeds from disposal of assets	—			—			—			—			—			23,390			—		23,390
Net cash used in investing activities	—			—			(473,460		)	—			—			(136,423		)	—		(609,883		)
Cash flows from financing activities
Repayment of long-term debt	—			—			—			(322,207		)	—			—			—		(322,207		)
Premiums paid on early repayment of long-term debt	—			—			—			(1,781		)	—			—			—		(1,781		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(61,980		)	—		(61,980		)
Distributions to parent company, net	(76,051		)	—			—			—			—			—			—		(76,051		)
Advances (to) from affiliates	(15,513		)	124,190			390,122			602,320			8,697			(1,109,816		)	—		—
Net cash provided by (used in) financing activities	(91,564		)	124,190			390,122			278,332			8,697			(1,171,796		)	—		(462,019		)
Net change in cash and cash equivalents	354			—			(1,983		)	1			—			(84,418		)	—		(86,046		)
Cash and cash equivalents, beginning of period	1,627			—			2,101			—			—			508,067			—		511,795
Cash and cash equivalents, end of period	$	1,981		$	—		$	118		$	1		$	—		$	423,649		$	—	$	425,749