UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): January 13, 2012
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Ensco plc
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(Exact name of registrant as specified in its charter)
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England and Wales
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1-8097
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98-0635229
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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6 Chesterfield Gardens
London, England W1J 5BQ
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(Address of Principal Executive Offices and Zip Code)
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Registrant's telephone number, including area code: 44 (0) 20 7659 4660
Not Applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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•
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Sections b) and j) of Note 1 and Note 13 to our audited consolidated financial statements as of December 31, 2010 and 2009 and for each of the years in the three-year period ended December 31, 2010, included in Part II, "Item 8. Financial Statements and Supplementary Data" of the Form 10-K (filed as Exhibit 99.1 hereto);
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•
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The Business Environment and Results of Operations sections, included in Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Form 10-K (filed as Exhibit 99.2 hereto); and
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•
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The Contract Drilling Operations and Backlog Information sections included in Part I, "Item 1. Business" of the Form 10-K (filed as Exhibit 99.3 hereto).
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•
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our ability to successfully integrate the operations of Ensco and Pride as contemplated and to realize the anticipated benefits of the Merger;
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•
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our ability to meet our increased debt service obligations as a result of the Merger and to fund planned expenditures, including construction costs for our remaining newbuild construction projects;
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•
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our ability to realize expected benefits from the December 2009 redomestication as a U.K. public limited company and the related reorganization of Ensco’s corporate structure (the "redomestication"), including the effect of any changes in laws, rules and regulations, or the interpretation thereof, or in the applicable facts, that could adversely affect our status as a non-U.S. corporation for U.S. tax purposes or otherwise adversely affect our anticipated consolidated effective income tax rate;
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•
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the continued impact of the Macondo well incident on offshore drilling operations, including current and any future actual or de facto drilling permit and operations delays, moratoria or suspensions, new and future regulatory, legislative or permitting requirements (including requirements related to certification and testing of blow-out preventers and other equipment or otherwise impacting operations), future lease sales, changes in laws, rules and regulations that have or may impose increased financial responsibility, additional oil spill abatement contingency plan capability requirements and other governmental actions that may result in claims of force majeure or otherwise adversely affect our existing drilling contracts;
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•
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governmental regulatory, legislative and permitting requirements affecting drilling operations, including limitations on drilling locations, such as the Gulf of Mexico during hurricane season;
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•
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changes in worldwide rig supply and demand, competition or technology, including changes as a result of delivery of newbuild drilling rigs;
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•
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changes in future levels of drilling activity and expenditures, whether as a result of global capital markets and liquidity, prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs;
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•
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downtime and other risks associated with offshore rig operations or rig relocations, including rig or equipment failure, damage and other unplanned repairs, the limited availability of transport vessels, hazards, self-imposed drilling limitations and other delays due to severe storms and hurricanes and the limited availability or high cost of insurance coverage for certain offshore perils, such as hurricanes in the Gulf of Mexico or associated removal of wreckage or debris;
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•
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possible cancellation or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons;
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•
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risks inherent to shipyard rig construction, repair or enhancement, including risks associated with concentration of our construction contracts with two shipyards, unexpected delays in equipment delivery and engineering or design issues following delivery, or changes in the commencement, completion or service dates;
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•
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delays in actual contract commencement dates;
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•
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environmental or other liabilities, risks or losses, whether related to storm or hurricane damage, losses or liabilities (including wreckage or debris removal), collisions, groundings, blowouts, fires, explosions and other accidents or terrorism or otherwise, for which insurance coverage and contractual indemnities may be insufficient or otherwise unavailable;
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•
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our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to labor regulations, unionization or otherwise;
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•
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governmental action, terrorism, piracy, military action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, mass strikes, or an escalation or additional outbreak of armed hostilities or other crises in oil or natural gas producing areas of the Middle East, North Africa, West Africa or other geographic areas, which may result in expropriation, nationalization, confiscation or deprivation of our assets or result in claims of a force majeure situation;
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•
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the outcome of litigation, legal proceedings, investigations or other claims or contract disputes, including any inability to collect receivables or resolve significant contractual or day rate disputes, claims related to the Seahawk bankruptcy and related matters, any purported renegotiation, nullification, cancellation or breach of contracts with customers or other parties and any failure to negotiate or complete definitive contracts following announcements of receipt of letters of intent;
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•
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adverse changes in foreign currency exchange rates, including their effect on the fair value measurement of our derivative instruments; and
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•
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potential long-lived asset or goodwill impairments
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Exhibit No.
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Description
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23.1
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Consent of Independent Registered Public Accounting Firm.
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99.1
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Updated Part II, "Item 8. Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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99.2 |
Updated Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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99.3
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Updated Part I, "Item 1. Business" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
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XBRL Instance Document
XBRL Taxonomy Extension Schema
XBRL Taxonomy Extension Calculation Linkbase
XBRL Taxonomy Extension Definition Linkbase
XBRL Taxonomy Extension Label Linkbase
XBRL Taxonomy Extension Presentation Linkbase
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Ensco plc
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||
Date: January 13, 2012
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/s/ DOUGLAS J. MANKO
Douglas J. Manko
Controller
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Exhibit No.
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Description
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23.1
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Consent of Independent Registered Public Accounting Firm.
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99.1
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Updated Part II, "Item 8. Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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99.2
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Updated Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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99.3
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Updated Part I, "Item 1. Business" of our Annual Report on Form 10-K for the year ended December 31, 2010.
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101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
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XBRL Instance Document
XBRL Taxonomy Extension Schema
XBRL Taxonomy Extension Calculation Linkbase
XBRL Taxonomy Extension Definition Linkbase
XBRL Taxonomy Extension Label Linkbase
XBRL Taxonomy Extension Presentation Linkbase
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7
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Year Ended December 31,
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|||||||
2010
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2009
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2008
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|||||
OPERATING REVENUES
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$1,696.8
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$1,888.9
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$2,242.6
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OPERATING EXPENSES
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|||||||
Contract drilling (exclusive of depreciation)
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768.1
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709.0
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736.3
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||||
Depreciation
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216.3
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189.5
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172.6
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||||
General and administrative
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86.1
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64.0
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53.8
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||||
1,070.5
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962.5
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962.7
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|||||
OPERATING INCOME
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626.3
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926.4
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1,279.9
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||||
OTHER INCOME (EXPENSE), NET
|
18.2
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8.8
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(4.2
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)
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|||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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644.5
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935.2
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1,275.7
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||||
PROVISION FOR INCOME TAXES
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|||||||
Current income tax expense
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81.7
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159.5
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218.3
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||||
Deferred income tax expense
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14.3
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20.5
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4.1
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||||
96.0
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180.0
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222.4
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|||||
INCOME FROM CONTINUING OPERATIONS
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548.5
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755.2
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1,053.3
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||||
DISCONTINUED OPERATIONS
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|||||||
(Loss) income from discontinued operations, net
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(1.2
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) |
29.3
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126.9
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Gain (loss) on disposal of discontinued operations, net
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38.6
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--
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(23.5
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)
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37.4
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29.3
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103.4
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||||
NET INCOME
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585.9
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784.5
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1,156.7
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||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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(6.4
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)
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(5.1
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)
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(5.9
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)
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NET INCOME ATTRIBUTABLE TO ENSCO
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$ 579.5
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$ 779.4
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$1,150.8
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EARNINGS PER SHARE - BASIC
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|||||||
Continuing operations
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$ 3.80
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$ 5.28
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$ 7.32
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Discontinued operations
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.26
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.20
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.72
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||||
$ 4.06 | $ 5.48 | $ 8.04 | |||||
EARNINGS PER SHARE - DILUTED
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|||||||
Continuing operations
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$ 3.80
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$ 5.28
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$ 7.31
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Discontinued operations
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.26
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.20
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.71
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$ 4.06
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$ 5.48
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$ 8.02
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NET INCOME ATTRIBUTABLE TO ENSCO SHARES
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|||||||
Basic
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$ 572.1
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$ 769.7
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$1,138.2
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Diluted
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$ 572.1
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$ 769.7
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$1,138.2
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WEIGHTED-AVERAGE SHARES OUTSTANDING
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|||||||
Basic
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141.0
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140.4
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141.6
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Diluted
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141.0
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140.5
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141.9
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CASH DIVIDENDS PER SHARE
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$ 1.075
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$ .10
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$ .10
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December 31,
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|||||
ASSETS |
2010
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2009
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|||
CURRENT ASSETS
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|||||
Cash and cash equivalents
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$1,050.7
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$1,141.4
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Accounts receivable, net
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214.6
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324.6
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|||
Other
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171.4
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186.8
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|||
Total current assets
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1,436.7
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1,652.8
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|||
PROPERTY AND EQUIPMENT, AT COST
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6,744.6
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6,151.2
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|||
Less accumulated depreciation
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1,694.7
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1,673.9
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Property and equipment, net
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5,049.9
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4,477.3
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GOODWILL
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336.2
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336.2
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LONG-TERM INVESTMENTS
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44.5
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60.5
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|||
OTHER ASSETS, NET
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184.2
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220.4
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|||
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$7,051.5
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$6,747.2
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LIABILITIES AND SHAREHOLDERS' EQUITY
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|||||
CURRENT LIABILITIES
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|||||
Accounts payable - trade
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$ 163.5
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$ 159.1
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Accrued liabilities and other
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168.3
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308.6
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|||
Current maturities of long-term debt
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17.2
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17.2
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|||
Total current liabilities
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349.0
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484.9
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|||
LONG-TERM DEBT
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240.1
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257.2
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|||
DEFERRED INCOME TAXES
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358.0
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377.3
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|||
OTHER LIABILITIES
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139.4
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120.7
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|||
COMMITMENTS AND CONTINGENCIES
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|||||
ENSCO SHAREHOLDERS' EQUITY
|
|||||
Class A ordinary shares, U.S. $.10 par value, 450.0 million shares authorized,
150.0 million shares issued as of December 31, 2010 and 2009
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15.0
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15.0
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|||
Class B ordinary shares, £1 par value, 50,000 shares authorized and issued
as of December 31, 2010 and 2009
|
.1
|
.1
|
|||
Additional paid-in capital
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637.1
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602.6
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|||
Retained earnings
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5,305.0
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4,879.2
|
|||
Accumulated other comprehensive income
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11.1
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5.2
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|||
Treasury shares, at cost, 7.1 million shares and 7.5 million shares
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(8.8
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)
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(2.9
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)
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Total Ensco shareholders' equity
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5,959.5
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5,499.2
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|||
NONCONTROLLING INTERESTS
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5.5
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7.9
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|||
Total equity
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5,965.0
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5,507.1
|
|||
|
$7,051.5
|
|
$6,747.2
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Year Ended December 31,
|
|||||||
2010
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2009
|
2008
|
|||||
OPERATING ACTIVITIES
|
|||||||
Net income
|
|
$ 585.9
|
|
$ 784.5
|
|
$1,156.7
|
|
Adjustments to reconcile net income to net cash provided
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|||||||
by operating activities of continuing operations:
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|||||||
Depreciation expense
|
216.3
|
189.5
|
172.6
|
||||
Share-based compensation expense
|
44.5
|
35.5
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27.3
|
||||
Amortization expense
|
31.4
|
31.0
|
30.5
|
||||
Deferred income tax expense
|
14.3
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20.5
|
4.1
|
||||
Loss on asset impairment | 12.2 | 17.3 | -- | ||||
Loss (income) from discontinued operations, net
|
1.2
|
|
(29.3
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)
|
(126.9
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)
|
|
(Gain) loss on disposal of discontinued operations, net
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(38.6
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) |
--
|
23.5
|
|||
Bad debt expense | (.8 | ) | 4.5 | 16.2 | |||
Other
|
7.4
|
3.0
|
2.1
|
||||
Changes in operating assets and liabilities:
|
|||||||
Decrease (increase) in accounts receivable
|
110.9
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167.4
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(110.7
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)
|
|||
Decrease (increase) in trading securities
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16.7
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5.5
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(72.3
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)
|
|||
Increase in other assets
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(27.3
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)
|
(73.1
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)
|
(40.5
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)
|
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(Decrease) increase in liabilities
|
(157.4
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) |
29.3
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(67.9
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)
|
||
Net cash provided by operating activities of continuing operations
|
816.7
|
1,185.6
|
1,014.7
|
||||
INVESTING ACTIVITIES
|
|||||||
Additions to property and equipment
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(875.3
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)
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(857.2
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)
|
(764.2
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)
|
|
Proceeds from disposal of discontinued operations
|
158.1
|
14.3
|
45.1
|
||||
Proceeds from disposition of assets
|
1.5
|
2.6
|
4.7
|
||||
Net cash used in investing activities
|
(715.7
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)
|
(840.3
|
)
|
(714.4
|
)
|
|
FINANCING ACTIVITIES
|
|||||||
Cash dividends paid
|
(153.7
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)
|
(14.2
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)
|
(14.3
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)
|
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Reduction of long-term borrowings
|
(17.2
|
)
|
(17.2
|
)
|
(19.0
|
)
|
|
Financing costs
|
(6.2
|
) |
--
|
--
|
|||
Repurchase of shares
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(6.0
|
)
|
(6.5
|
)
|
(259.7
|
)
|
|
Proceeds from exercise of share options | 1.4 | 9.6 | 27.3 | ||||
Other
|
(10.9
|
)
|
(5.9
|
)
|
1.5
|
||
Net cash used in financing activities
|
(192.6
|
)
|
(34.2
|
)
|
(264.2
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
(.5
|
) |
.5
|
(15.0
|
)
|
||
Net cash provided by operating activities of discontinued operations
|
1.4
|
40.2
|
139.0
|
||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(90.7
|
) |
351.8
|
160.1
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
1,141.4
|
789.6
|
629.5
|
||||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$1,050.7
|
|
$1,141.4
|
|
$ 789.6
|
Deepwater
|
|
$143.6
|
|||
Midwater*
|
--
|
||||
Jackup
|
192.6
|
||||
Total
|
|
$336.2
|
*
|
Prior to the Merger Date, our rig fleet did not consist of midwater rigs. Therefore, no pre-existing goodwill was reassigned to the Midwater reporting unit as of December 31, 2010.
|
2010
|
2009
|
2008
|
|||||
Net income attributable to Ensco
|
579.5
|
$779.4
|
$1,150.8
|
||||
Net income allocated to non-vested share awards
|
(7.4
|
) |
(9.7
|
) |
(12.6
|
) | |
Net income attributable to Ensco shares
|
572.1
|
$769.7
|
$1,138.2
|
2010
|
2009
|
2008
|
|||||
Weighted-average shares - basic
|
141.0
|
140.4
|
141.6
|
||||
Potentially dilutive share options
|
.0
|
.1
|
.3
|
||||
Weighted-average shares - diluted
|
141.0
|
140.5
|
141.9
|
2010
|
2009
|
2008
|
|
Income from continuing operations
|
$548.5
|
$755.2
|
$1,053.3
|
Income from continuing operations attributable to
noncontrolling interests
|
(6.2)
|
(4.2)
|
(5.1)
|
Income from continuing operations attributable to Ensco
|
$542.3
|
$751.0
|
$1,048.2
|
2010
|
2009
|
2008
|
|
Income from discontinued operations
|
$37.4
|
$29.3
|
$103.4
|
Income from discontinued operations attributable to
noncontrolling interests
|
(.2)
|
(.9)
|
(.8)
|
Income from discontinued operations attributable to Ensco
|
$37.2
|
$28.4
|
$102.6
|
2010
|
2009
|
||||
Drilling rigs and equipment
|
|
$5,175.2
|
|
$4,801.1
|
|
Other
|
50.4
|
47.0
|
|||
Work in progress
|
1,519.0
|
1,303.1
|
|||
|
$6,744.6
|
|
$6,151.2
|
2010
|
2009
|
||||
7.20% Debentures due 2027
|
$148.9
|
$148.9
|
|||
6.36% Bonds due 2015
|
63.4
|
76.0
|
|||
4.65% Bonds due 2020
|
45.0
|
49.5
|
|||
257.3
|
274.4
|
||||
Less current maturities
|
(17.2
|
)
|
(17.2
|
)
|
|
Total long-term debt
|
$240.1
|
$257.2
|
2011
|
|
$ 17.2
|
|||
2012
|
17.2
|
||||
2013
|
17.2
|
||||
2014
|
17.2
|
||||
2015
|
17.2
|
||||
Thereafter
|
172.4
|
||||
Total
|
|
$258.4
|
Derivative Assets | Derivative Liabilities | |||||||
2010
|
2009
|
2010
|
2009
|
|||||
Derivatives Designated as Hedging Instruments
|
||||||||
Foreign currency forward contracts - current(1)
|
$16.8
|
$10.2
|
$.6
|
$1.1
|
||||
Foreign currency forward contracts - non-current(2)
|
.1
|
3.8
|
.1
|
--
|
||||
16.9
|
14.0
|
.7
|
1.1
|
|||||
Derivatives not Designated as Hedging Instruments
|
||||||||
Foreign currency forward contracts - current(1)
|
.2
|
.3
|
--
|
.0
|
||||
.2
|
.3
|
--
|
.0
|
|||||
Total
|
$17.1
|
$14.3
|
$.7
|
$1.1
|
(1)
|
Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet dates were included in other current assets and accrued liabilities and other, respectively, on our consolidated balance sheets.
|
|
(2)
|
Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet dates were included in other assets, net, and other liabilities, respectively, on our consolidated balance sheets.
|
Gain (Loss)
Recognized in
Other Comprehensive
Income ("OCI")
on Derivatives
(Effective Portion)
|
(Loss) Gain
Reclassified from
AOCI into Income
(Effective Portion)
|
Gain (Loss) Recognized
in Income on
Derivatives (Ineffective
Portion and Amount
Excluded from
Effectiveness Testing)(1)
|
|||||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
|||||||||
Interest rate lock contracts(2) | $ -- | $ -- | $ -- | $ (.6) | $ (.7) | $ (.7) | $ -- | $ -- | $ -- | ||||||||
Foreign currency forward contracts(3)
|
7.6
|
13.5
|
(16.4)
|
2.3
|
(8.0)
|
(2.9)
|
.3
|
(2.9)
|
(1.0)
|
||||||||
Total
|
$ 7.6
|
$13.5
|
$(16.4)
|
$ 1.7
|
$(8.7)
|
$(3.6)
|
$ .3
|
$(2.9)
|
$(1.0)
|
(1)
|
Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other income (expense), net, in our consolidated statements of income.
|
|
(2)
|
Gains and losses on derivatives reclassified from AOCI into income (effective portion) were included in other income (expense), net, in our consolidated statements of income.
|
|
(3)
|
Gains and losses on derivatives reclassified from AOCI into income (effective portion) were included in contract drilling expense in our consolidated statements of income.
|
Net unrealized gains to be reclassified to contract drilling expense
|
|
$1.1
|
|
Net realized losses to be reclassified to other income (expense), net
|
(.3
|
)
|
|
Net gains to be reclassified to earnings
|
|
$ .8
|
2010
|
2009
|
2008
|
|||||
Net income
|
$585.9
|
$784.5
|
$1,156.7
|
||||
Other comprehensive income:
|
|||||||
Net change in fair value of derivatives
|
7.6
|
13.5
|
(16.4
|
)
|
|||
Reclassification of gains and losses on derivative
instruments from other comprehensive (income)
loss into net income
|
(1.7
|
) |
8.7
|
3.6
|
|||
Net other comprehensive income (loss)
|
5.9
|
22.2
|
(12.8
|
)
|
|||
Comprehensive income
|
591.8
|
806.7
|
1,143.9
|
||||
Comprehensive income attributable to noncontrolling interests
|
(6.4
|
)
|
(5.1
|
)
|
(5.9
|
)
|
|
Comprehensive income attributable to Ensco
|
$585.4
|
$801.6
|
$1,138.0
|
Accumulated
|
|||||||||||||||
Other
|
|||||||||||||||
Additional
|
Comprehensive
|
||||||||||||||
Paid-In
|
Retained
|
Income
|
Treasury
|
Noncontrolling
|
|||||||||||
Shares
|
Par Value
|
Capital
|
Earnings
|
(Loss)
|
Shares
|
Interest
|
|||||||||
BALANCE, December 31, 2007
|
180.3
|
$18.0
|
$1,700.5
|
$2,977.5
|
$ (4.2)
|
$(939.8)
|
$ 4.6
|
||||||||
Net income
|
--
|
--
|
--
|
1,150.8
|
--
|
--
|
5.9
|
||||||||
Cash dividends paid
|
--
|
--
|
--
|
(14.3
|
)
|
--
|
--
|
|
--
|
||||||
Distributions to noncontrolling interests
|
--
|
--
|
--
|
--
|
--
|
--
|
(3.8)
|
||||||||
Shares issued under share-based compensation
|
|||||||||||||||
plans, net
|
1.6
|
.2
|
27.1
|
--
|
--
|
--
|
--
|
||||||||
Tax benefit from share-based
|
|||||||||||||||
compensation
|
--
|
--
|
5.3
|
--
|
--
|
--
|
--
|
||||||||
Repurchase of shares
|
--
|
--
|
--
|
--
|
--
|
(259.7)
|
--
|
||||||||
Share-based compensation cost
|
--
|
--
|
28.3
|
--
|
--
|
--
|
--
|
||||||||
Net other comprehensive loss
|
--
|
--
|
--
|
--
|
(12.8)
|
--
|
--
|
||||||||
BALANCE, December 31, 2008
|
181.9
|
18.2
|
1,761.2
|
4,114.0
|
(17.0)
|
(1,199.5)
|
6.7
|
||||||||
Net income
|
--
|
--
|
--
|
779.4
|
--
|
--
|
5.1
|
||||||||
Cash dividends paid
|
--
|
--
|
--
|
(14.2
|
)
|
--
|
--
|
--
|
|||||||
Distributions to noncontrolling interests
|
--
|
--
|
--
|
--
|
--
|
--
|
(3.9)
|
||||||||
Shares issued under share-based compensation
|
|||||||||||||||
plans, net
|
.9
|
.1
|
9.5
|
--
|
--
|
--
|
--
|
||||||||
Tax deficiency from share-based
|
|||||||||||||||
compensation
|
--
|
--
|
(2.4)
|
--
|
--
|
--
|
--
|
||||||||
Repurchase of shares
|
--
|
--
|
--
|
--
|
--
|
(6.5)
|
--
|
||||||||
Retirement of treasury shares
|
(40.2)
|
(4.0)
|
(1,200.0)
|
--
|
--
|
1,203.9
|
--
|
||||||||
Share-based compensation cost
|
--
|
--
|
34.3
|
--
|
--
|
--
|
--
|
||||||||
Net other comprehensive income
|
--
|
--
|
--
|
--
|
22.2
|
--
|
--
|
||||||||
Cancellation of shares of common stock
during redomestication
|
(142.6)
|
(14.3)
|
--
|
--
|
--
|
--
|
--
|
||||||||
Issuance of ordinary shares pursuant
to the redomestication
|
150.1
|
15.1
|
--
|
--
|
--
|
(.8)
|
--
|
||||||||
BALANCE, December 31, 2009
|
150.1
|
15.1
|
602.6
|
4,879.2
|
5.2
|
(2.9)
|
7.9
|
||||||||
Net income
|
--
|
--
|
--
|
579.5
|
--
|
--
|
6.4
|
||||||||
Cash dividends paid
|
--
|
--
|
--
|
(153.7
|
)
|
--
|
--
|
--
|
|||||||
Distributions to noncontrolling interests
|
--
|
--
|
--
|
--
|
--
|
--
|
(8.8)
|
||||||||
Shares issued under share-based compensation
|
|||||||||||||||
plans, net
|
--
|
--
|
1.4
|
--
|
--
|
.1
|
--
|
||||||||
Tax deficiency from share-based
|
|||||||||||||||
compensation
|
--
|
--
|
(2.2)
|
--
|
--
|
--
|
--
|
||||||||
Repurchase of shares
|
--
|
--
|
--
|
--
|
--
|
(6.0)
|
--
|
||||||||
Share-based compensation cost
|
--
|
--
|
35.3
|
--
|
--
|
--
|
--
|
||||||||
Net other comprehensive income
|
--
|
--
|
--
|
--
|
5.9
|
--
|
--
|
||||||||
BALANCE, December 31, 2010
|
150.1
|
$15.1
|
$ 637.1
|
$5,305.0
|
$ 11.1
|
$ (8.8)
|
$ 5.5
|
Quoted Prices in
|
Significant
|
|||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||
for
|
Observable
|
Unobservable
|
||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||
As of December 31, 2010
|
||||||||||||
Auction rate securities
|
$ --
|
$ --
|
$44.5
|
$44.5
|
||||||||
Supplemental executive retirement plan assets
|
23.0
|
--
|
--
|
23.0
|
||||||||
Derivatives, net
|
--
|
16.4
|
--
|
16.4
|
||||||||
Total financial assets
|
$23.0
|
$16.4
|
$44.5
|
$83.9
|
||||||||
As of December 31, 2009
|
||||||||||||
Auction rate securities
|
$ --
|
$ --
|
$60.5
|
$60.5
|
||||||||
Supplemental executive retirement plan assets
|
18.7
|
--
|
--
|
18.7
|
||||||||
Derivatives, net
|
--
|
13.2
|
--
|
13.2
|
||||||||
Total financial assets
|
$18.7
|
$13.2
|
$60.5
|
$92.4
|
2010
|
2009
|
2008 | |||||
Beginning Balance
|
$60.5
|
$64.2
|
$ -- | ||||
Purchases | -- | -- | 83.0 | ||||
Sales
|
(16.7
|
)
|
(5.5
|
)
|
(10.7 | ) | |
Unrealized gains (losses)*
|
.7
|
1.8
|
(8.1 | ) | |||
Transfers in and/or out of Level 3
|
--
|
--
|
-- | ||||
Ending balance
|
$44.5
|
$60.5
|
$64.2 |
*
|
Unrealized gains (losses) are included in other income (expense), net, in our consolidated statement of income.
|
December 31,
|
December 31,
|
||||||||
2010
|
2009
|
||||||||
Estimated
|
Estimated
|
||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||
Value
|
Value
|
Value
|
Value
|
||||||
7.20% Debentures
|
$148.9
|
$165.0
|
$148.9
|
$155.9
|
|||||
6.36% Bonds, including current maturities
|
63.4
|
71.9
|
76.0
|
85.8
|
|||||
4.65% Bonds, including current maturities
|
45.0
|
50.6
|
49.5
|
53.8
|
2010
|
2009
|
2008
|
|||||
Contract drilling
|
$17.2
|
|
$16.8
|
|
$11.4
|
|
|
General and administrative
|
13.9
|
11.4
|
7.6
|
||||
Non-vested share award related compensation expense
|
|||||||
included in operating expenses
|
31.1
|
28.2
|
19.0
|
||||
Tax benefit
|
(6.3
|
)
|
(7.0
|
)
|
(4.7
|
)
|
|
Total non-vested share award related compensation
|
|||||||
expense included in net income
|
$24.8
|
$21.2
|
$14.3
|
2010
|
2009
|
2008
|
|||||
Weighted-average grant-date fair value of
|
|
|
|
||||
non-vested share awards granted (per share)
|
$35.81
|
$40.91
|
$67.99
|
||||
Total fair value of non-vested share awards
|
|||||||
vested during the period (in millions)
|
$22.1
|
$18.6
|
$17.9
|
Weighted-
|
|||||
Average
|
|||||
Grant-Date
|
|||||
Shares
|
Fair Value
|
||||
Non-vested as of January 1, 2010
|
1,811
|
$54.21
|
|||
Granted
|
626
|
35.81
|
|||
Vested
|
(576
|
)
|
54.59
|
||
Forfeited
|
(70
|
)
|
51.75
|
||
Non-vested as of December 31, 2010
|
1,791
|
$47.75
|
2010
|
2009
|
2008
|
|||||
Contract drilling
|
$ .7
|
$ 1.7
|
$ 3.3
|
|
|||
General and administrative
|
2.8
|
3.7
|
5.0
|
||||
Option related compensation expense included in
|
|||||||
operating expenses
|
3.5
|
5.4
|
8.3
|
||||
Tax benefit
|
(.6)
|
(1.6)
|
(2.3)
|
||||
Total option related compensation expense included
|
|||||||
in net income
|
|
$ 2.9
|
|
$ 3.8
|
|
$ 6.0
|
2010
|
2009
|
||||
Risk-free interest rate
|
1.8
|
%
|
1.8
|
%
|
|
Expected term (in years)
|
4.0
|
3.9
|
|||
Expected volatility
|
53.1
|
%
|
53.3
|
%
|
|
Dividend yield
|
4.1
|
%
|
.2
|
%
|
Weighted-
|
Weighted-
|
||||||||
Average
|
Average
|
||||||||
Exercise
|
Contractual
|
Intrinsic
|
|||||||
Shares
|
Price
|
Term
|
Value
|
||||||
Outstanding as of January 1, 2010
|
1,213
|
$48
|
.98
|
||||||
Granted
|
160
|
34
|
.45
|
||||||
Exercised
|
(38
|
)
|
37
|
.26
|
|||||
Forfeited
|
(3
|
)
|
53
|
.12
|
|||||
Expired
|
(11
|
)
|
51
|
.79
|
|||||
Outstanding as of December 31, 2010
|
1,321
|
$47
|
.52
|
3
|
.3
|
$9,915
|
|||
Exercisable as of December 31, 2010
|
1,022
|
$49
|
.12
|
2
|
.6
|
$6,036
|
2010
|
2009
|
2008
|
|||||
Weighted-average grant-date fair value of
|
|
|
|
||||
options granted (per share)
|
$11.05
|
$17.17
|
$ --
|
||||
Intrinsic value of options exercised during
|
|||||||
the year (in millions)
|
$ .4
|
$ 3.6
|
$25.5
|
Options Outstanding
|
Options Exercisable
|
||||||
Weighted-Average
|
|||||||
Number
|
Remaining
|
Weighted-Average
|
Number
|
Weighted-Average
|
|||
Exercise Prices
|
Outstanding
|
Contractual Life
|
Exercise Price
|
Exercisable
|
Exercise Price
|
||
$23.12 - $34.45
|
294
|
4.1 years
|
$34.03
|
134
|
$33.54
|
||
41.29 - 47.12
|
380
|
3.2 years
|
45.10
|
311
|
45.94
|
||
50.09 - 52.82
|
351
|
2.5 years
|
50.31
|
347
|
50.31
|
||
57.38 - 60.74
|
296
|
3.4 years
|
60.71
|
230
|
60.71
|
||
1,321
|
3.3 years
|
$47.52
|
1,022
|
$49.12
|
2010
|
2009
|
2008
|
|||||
Current income tax expense:
|
|||||||
U.S.
|
$ 9.8
|
$ 71.9
|
$103.7
|
||||
Non-U.S.
|
71.9
|
87.6
|
114.6
|
||||
81.7
|
159.5
|
218.3
|
|||||
Deferred income tax expense (benefit):
|
|||||||
U.S.
|
15.2
|
20.5
|
13.9
|
||||
Non-U.S.
|
(.9
|
)
|
--
|
|
(9.8
|
)
|
|
14.3
|
20.5
|
4.1
|
|||||
Total income tax expense
|
$96.0
|
$180.0
|
$222.4
|
2010
|
2009
|
||||
Deferred tax assets:
|
|||||
Deferred revenue
|
$ 28.9
|
$ 34.1
|
|||
Employee benefits, including share-based compensation
|
21.1
|
25.6
|
|||
Other
|
10.9
|
18.3
|
|||
Total deferred tax assets
|
60.9
|
78.0
|
|||
Deferred tax liabilities:
|
|||||
Property and equipment
|
(335.6
|
)
|
(348.9
|
)
|
|
Intercompany transfers of property
|
(35.2
|
)
|
(45.5
|
)
|
|
Deferred costs
|
(24.5
|
)
|
(23.5
|
)
|
|
Other
|
(14.3
|
)
|
(7.7
|
)
|
|
Total deferred tax liabilities
|
(409.6
|
)
|
(425.6
|
)
|
|
Net deferred tax liability
|
$(348.7
|
)
|
$(347.6
|
)
|
|
Net current deferred tax asset
|
$ 9.3
|
$ 29.7
|
|||
Net noncurrent deferred tax liability
|
(358.0
|
)
|
(377.3
|
)
|
|
Net deferred tax liability
|
$(348.7
|
)
|
$(347.6
|
)
|
2010
|
2009
|
2008
|
|||||
Statutory income tax rate
|
28.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|
Non-U.K./U.S. taxes
|
(18.4
|
)
|
(17.6
|
)
|
(19.2
|
)
|
|
Amortization of deferred charges
associated with intercompany rig sales
|
2.7
|
1.8
|
1.3
|
||||
Redomestication related income taxes
|
.0
|
.9
|
--
|
||||
Net (benefit) expense in connection with resolutions
|
|||||||
of tax issues and adjustments relating to prior years
|
(.5
|
)
|
(.9
|
)
|
.5
|
||
Other
|
3.1
|
--
|
(.2
|
)
|
|||
Effective income tax rate
|
14.9
|
%
|
19.2
|
%
|
17.4
|
%
|
2010
|
2009
|
||||
Balance, beginning of year
|
$17.6
|
$26.8
|
|||
Increases in unrecognized tax benefits as a result
of tax positions taken during the current year
|
1.0
|
2.0
|
|||
Increases in unrecognized tax benefits as a result
of tax positions taken during prior years
|
--
|
--
|
|||
Decreases in unrecognized tax benefits as a result
of tax positions taken during prior years
|
(.2
|
)
|
(2.7
|
)
|
|
Settlements with taxing authorities
|
--
|
|
(8.7
|
)
|
|
Lapse of applicable statutes of limitations
|
(1.3
|
)
|
(.8
|
)
|
|
Impact of foreign currency exchange rates
|
(3.4
|
) |
1.0
|
||
Balance, end of year
|
$13.7
|
$17.6
|
2010
|
2009
|
2008
|
||||||
Revenues
|
$12.5
|
|
$83.0
|
|
$244.0
|
|
||
Operating expenses
|
17.1
|
54.2
|
89.3
|
|||||
Operating (loss) income before income taxes
|
(4.6
|
) |
28.8
|
154.7
|
||||
Income tax (benefit) expense
|
(3.4
|
) |
(.5
|
) |
27.8
|
|||
Gain (loss) on disposal of discontinued operations, net
|
38.6
|
|
--
|
|
(23.5
|
)
|
||
Income from discontinued operations
|
$37.4
|
$29.3
|
$103.4
|
|
2011
|
|
$ 435.6
|
|||
2012
|
223.9
|
||||
Total
|
|
$659.5
|
|
|||||||||||||||||||||||
|
|
Operating
|
|||||||||||||||||||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||||||||||||||||||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|||||||||||||||||
Revenues
|
$ 475.2
|
$ --
|
$1,221.6
|
$ --
|
$1,696.8
|
$ --
|
$1,696.8
|
||||||||||||||||
Operating expenses
Contract drilling (exclusive
of depreciation)
|
176.1
|
--
|
578.2
|
13.8
|
768.1
|
--
|
768.1
|
||||||||||||||||
Depreciation
|
44.8
|
--
|
167.8
|
2.4
|
215.0
|
1.3
|
216.3
|
||||||||||||||||
General and administrative
|
--
|
--
|
--
|
--
|
--
|
86.1
|
86.1
|
||||||||||||||||
Operating income (loss)
|
$ 254.3
|
$ --
|
$ 475.6
|
$(16.2
|
) |
$ 713.7
|
$(87.4
|
) |
$ 626.3
|
||||||||||||||
Property and equipment, net
|
$2,866.4
|
$ --
|
$2,165.2
|
$ 14.4
|
$5,046.0
|
$ 3.9
|
$5,049.9
|
||||||||||||||||
Capital expenditures
|
632.5
|
--
|
238.7
|
--
|
871.2
|
4.1
|
875.3
|
|
|||||||||||||||||||||||
|
|
Operating
|
|||||||||||||||||||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||||||||||||||||||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|||||||||||||||||
Revenues
|
$ 254.1
|
$ --
|
$1,634.8
|
$ --
|
$1,888.9
|
$ --
|
$1,888.9
|
||||||||||||||||
Operating expenses
Contract drilling (exclusive
of depreciation)
|
108.1
|
--
|
599.0
|
1.9
|
709.0
|
--
|
709.0
|
||||||||||||||||
Depreciation
|
22.2
|
--
|
162.9
|
3.1
|
188.2
|
1.3
|
189.5
|
||||||||||||||||
General and administrative
|
--
|
--
|
--
|
--
|
--
|
64.0
|
64.0
|
||||||||||||||||
Operating income (loss)
|
$ 123.8
|
$ --
|
$ 872.9
|
$ (5.0
|
) |
$ 991.7
|
$(65.3
|
) |
$ 926.4
|
||||||||||||||
Property and equipment, net
|
$2,243.3
|
$ --
|
$2,200.8
|
$28.8
|
$4,472.9
|
$ 4.4
|
$4,477.3
|
||||||||||||||||
Capital expenditures
|
644.4
|
--
|
209.8
|
.3
|
854.5
|
2.7
|
857.2
|
|
|||||||||||||||||||||||
|
|
Operating
|
|||||||||||||||||||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||||||||||||||||||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|||||||||||||||||
Revenues
|
$ 84.4
|
$ --
|
$2,144.0
|
$14.2
|
$2,242.6
|
$ --
|
$2,242.6
|
||||||||||||||||
Operating expenses
Contract drilling (exclusive
of depreciation)
|
31.2
|
--
|
696.5
|
8.6
|
736.3
|
--
|
736.3
|
||||||||||||||||
Depreciation
|
9.1
|
--
|
158.3
|
3.3
|
170.7
|
1.9
|
172.6
|
||||||||||||||||
General and administrative
|
--
|
--
|
--
|
--
|
--
|
53.8
|
53.8
|
||||||||||||||||
Operating income (loss)
|
$ 44.1
|
$ --
|
$1,289.2
|
$ 2.3
|
$1,335.6
|
$(55.7
|
) |
$1,279.9
|
|||||||||||||||
Property and equipment, net
|
$1,641.2
|
$ --
|
$2,194.0
|
$32.2
|
$3,867.4
|
$ 3.9
|
$3,871.3
|
||||||||||||||||
Capital expenditures
|
657.8
|
--
|
103.2
|
.5
|
761.5
|
2.7
|
764.2
|
Revenues
|
Long-lived Assets
|
||||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
||||||||
United States
|
$ 421.3
|
$ 263.0
|
$ 461.4
|
$1,993.3
|
$1,806.7
|
$1,663.6
|
|||||||
Australia
|
225.3
|
188.7
|
97.0
|
194.9
|
175.0
|
274.4
|
|||||||
United Kingdom | 219.0 | 353.2 | 478.3 | 429.2 | 457.4 | 309.0 | |||||||
Mexico | 179.8 | 159.5 | 53.9 | 259.3 | 229.3 | 41.2 | |||||||
Indonesia
|
56.8
|
72.3
|
254.2
|
134.6
|
50.2
|
153.9
|
|||||||
Singapore
|
--
|
--
|
--
|
1,235.6
|
720.1
|
550.5
|
|||||||
Other countries
|
594.6
|
852.2
|
897.8
|
803.0
|
1,038.6
|
878.7
|
|||||||
Total
|
$1,696.8
|
$1,888.9
|
$2,242.6
|
$5,049.9
|
$4,477.3
|
$3,871.3
|
2010
|
2009
|
||||
|
|
||||
Trade
|
$209.9
|
$310.1
|
|||
Other
|
7.8
|
17.9
|
|||
217.7
|
328.0
|
||||
Allowance for doubtful accounts
|
(3.1
|
)
|
(3.4
|
)
|
|
$214.6
|
$324.6
|
2010
|
2009
|
||||
Inventory
|
$ 56.4
|
$ 53.1
|
|||
Prepaid taxes
|
47.4
|
39.6
|
|||
Deferred mobilization costs
|
19.7
|
29.0
|
|||
Derivative assets
|
17.0
|
10.5
|
|||
Prepaid expenses | 12.9 | 13.6 | |||
Deferred tax assets
|
9.5
|
30.0
|
|||
Other
|
8.5
|
11.0
|
|||
$171.4
|
$186.8
|
2010
|
2009
|
|||||
Prepaid taxes on intercompany transfers of property
|
$ 74.6
|
$ 99.0
|
||||
Deferred mobilization costs
|
31.3
|
23.7
|
||||
Wreckage and debris removal receivables
|
26.8
|
55.8
|
||||
Supplemental executive retirement plan assets
|
23.0
|
18.7
|
||||
Other
|
28.5
|
23.2
|
||||
$184.2
|
$220.4
|
2010
|
2009
|
|||||
Personnel costs
|
$ 58.0
|
$ 48.6
|
||||
Deferred revenue
|
48.1
|
89.0
|
||||
Taxes
|
22.1
|
97.3
|
||||
Wreckage and debris removal
|
21.0
|
50.3
|
||||
Other
|
19.1
|
23.4
|
||||
$168.3
|
$308.6
|
2010
|
2009
|
||||
Deferred revenue
|
$ 68.0
|
$ 51.2
|
|||
Unrecognized tax benefits (inclusive of interest and penalties)
|
25.7
|
|
33.4
|
||
Supplemental executive retirement plan liabilities
|
26.0
|
21.0
|
|||
Other
|
19.7
|
15.1
|
|||
$139.4
|
$120.7
|
2010
|
2009
|
2008
|
|||||
Repair and maintenance expense
|
$120.0
|
$120.6
|
$111.4
|
2010
|
2009
|
2008
|
|||||
Interest, net of amounts capitalized
|
$ .1
|
$ .1
|
$ .5
|
||||
Income taxes
|
171.6
|
152.9
|
327.7
|
2010
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Year
|
||||||||||
Operating revenues
|
$448.6
|
$411.4
|
$428.3
|
$408.5
|
$1,696.8
|
||||||||||
Operating expenses
|
|||||||||||||||
Contract drilling (exclusive of depreciation)
|
182.4
|
206.0
|
194.1
|
185.6
|
768.1
|
||||||||||
Depreciation
|
51.7
|
51.9
|
55.6
|
57.1
|
216.3
|
||||||||||
General and administrative
|
20.6
|
22.0
|
20.6
|
22.9
|
86.1
|
||||||||||
Operating income
|
193.9
|
131.5
|
158.0
|
142.9
|
626.3
|
||||||||||
Other income (expense), net
|
3.1
|
12.8
|
2.7
|
|
(.4
|
)
|
18.2
|
|
|||||||
Income from continuing operations before income taxes
|
197.0
|
144.3
|
160.7
|
142.5
|
644.5
|
||||||||||
Provision for income taxes
|
35.0
|
22.4
|
26.7
|
11.9
|
96.0
|
||||||||||
Income from continuing operations
|
162.0
|
121.9
|
134.0
|
130.6
|
548.5
|
||||||||||
Income (loss) from discontinued operations, net
|
29.6
|
6.0
|
(1.9
|
)
|
3.7
|
|
37.4
|
|
|||||||
Net income
|
191.6
|
127.9
|
132.1
|
134.3
|
585.9
|
||||||||||
Net income attributable to noncontrolling interests
|
(1.8
|
)
|
(1.6
|
)
|
(1.6
|
)
|
(1.4
|
)
|
(6.4
|
)
|
|||||
Net income attributable to Ensco
|
$189.8
|
$126.3
|
$130.5
|
$132.9
|
$ 579.5
|
||||||||||
Earnings (loss) per share – basic
|
|||||||||||||||
Continuing operations
|
$ 1.12
|
$ .85
|
$ .92
|
$ .90
|
$ 3.80
|
||||||||||
Discontinued operations
|
.21
|
.04
|
(.01
|
)
|
.03
|
|
.26
|
|
|||||||
$ 1.33
|
$ .89
|
$ .91
|
$ .93
|
$ 4.06
|
|||||||||||
Earnings (loss) per share - diluted
|
|||||||||||||||
Continuing operations
|
$ 1.12
|
$ .85
|
$ .92
|
$ .90
|
$ 3.80
|
||||||||||
Discontinued operations
|
.21
|
.04
|
(.01
|
)
|
.03
|
|
.26
|
|
|||||||
$ 1.33
|
$ .89
|
$ .91
|
$ .93
|
$ 4.06
|
2009
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Year
|
||||||||||
Operating revenues
|
$484.8
|
$497.4
|
$408.9
|
$497.8
|
$1,888.9
|
||||||||||
Operating expenses
|
|||||||||||||||
Contract drilling (exclusive of depreciation)
|
161.5
|
196.3
|
175.4
|
175.8
|
709.0
|
||||||||||
Depreciation
|
43.7
|
45.3
|
48.9
|
51.6
|
189.5
|
||||||||||
General and administrative
|
12.0
|
16.0
|
13.6
|
22.4
|
64.0
|
||||||||||
Operating income
|
267.6
|
239.8
|
171.0
|
248.0
|
926.4
|
||||||||||
Other income (expense), net
|
(4.3
|
)
|
6.9
|
3.6
|
2.6
|
8.8
|
|||||||||
Income from continuing operations before income taxes
|
263.3
|
246.7
|
174.6
|
250.6
|
935.2
|
||||||||||
Provision for income taxes
|
52.2
|
47.9
|
29.6
|
50.3
|
180.0
|
||||||||||
Income from continuing operations
|
211.1
|
198.8
|
145.0
|
200.3
|
755.2
|
||||||||||
Income from discontinued operations, net
|
11.0
|
|
2.6
|
|
5.8
|
9.9
|
29.3
|
||||||||
Net income
|
222.1
|
201.4
|
150.8
|
210.2
|
784.5
|
||||||||||
Net income attributable to noncontrolling interests
|
(1.4
|
)
|
(1.1
|
)
|
(1.1
|
)
|
(1.5
|
)
|
(5.1
|
)
|
|||||
Net income attributable to Ensco
|
$220.7
|
$200.3
|
$149.7
|
$208.7
|
$ 779.4
|
||||||||||
Earnings per share - basic
|
|||||||||||||||
Continuing operations
|
$ 1.48
|
$ 1.39
|
$ 1.01
|
$ 1.40
|
$ 5.28
|
||||||||||
Discontinued operations
|
.08
|
|
.02
|
|
.04
|
.06
|
.20
|
||||||||
$ 1.56
|
$ 1.41
|
$ 1.05
|
$ 1.46
|
$ 5.48
|
|||||||||||
Earnings per share - diluted
|
|||||||||||||||
Continuing operations
|
$ 1.48
|
$ 1.39
|
$ 1.01
|
$ 1.40
|
$ 5.28
|
||||||||||
Discontinued operations
|
.08
|
|
.02
|
|
.04
|
.06
|
.20
|
||||||||
$ 1.56
|
$ 1.41
|
$ 1.05
|
$ 1.46
|
$ 5.48
|
|
•
|
demand for oil and natural gas,
|
|
•
|
regional and global economic conditions and changes therein,
|
|
•
|
political, social and legislative environments in major oil-producing countries,
|
|
•
|
production and inventory levels and related activities of OPEC and other oil and natural gas producers,
|
|
•
|
technological advancements that impact the methods or cost of oil and natural gas exploration and development,
|
|
•
|
disruption to exploration and development activities due to hurricanes and other severe weather conditions and the risk thereof, and
|
|
•
|
the impact that these and other events, whether caused by economic conditions, international or national climate change regulations or other factors, may have on the current and expected future prices of oil and natural gas.
|
2010
|
2009
|
2008
|
|||||||
Revenues
|
|
$1,696.8
|
|
$1,888.9
|
|
$2,242.6
|
|||
Operating expenses
|
|||||||||
Contract drilling (exclusive of depreciation)
|
768.1
|
709.0
|
736.3
|
||||||
Depreciation
|
216.3
|
189.5
|
172.6
|
||||||
General and administrative
|
86.1
|
64.0
|
53.8
|
||||||
Operating income
|
626.3
|
926.4
|
1,279.9
|
||||||
Other income (expense), net
|
18.2
|
8.8
|
(4.2
|
)
|
|||||
Provision for income taxes
|
96.0
|
180.0
|
222.4
|
||||||
Income from continuing operations
|
548.5
|
755.2
|
1,053.3
|
||||||
Income from discontinued operations, net
|
37.4
|
29.3
|
103.4
|
|
|||||
Net income
|
585.9
|
784.5
|
1,156.7
|
||||||
Net income attributable to noncontrolling interests
|
(6.4
|
)
|
(5.1
|
)
|
(5.9
|
)
|
|||
Net income attributable to Ensco
|
|
$ 579.5
|
|
$ 779.4
|
|
$1,150.8
|
2010
|
2009 |
2008
|
|
Deepwater(1)
|
5
|
3
|
2
|
Midwater(2)
|
--
|
--
|
--
|
Jackup(3)
|
40
|
39
|
39
|
Under construction(1)
|
3
|
5
|
6
|
Total(4)
|
48
|
47
|
47
|
(1)
|
ENSCO 8502 was delivered in January 2010 and commenced drilling operations in the U.S. Gulf of Mexico under a short-term sublet agreement during the fourth quarter of 2010. ENSCO 8503 was delivered in September 2010 and is expected to commence drilling operations in French Guiana under a short-term sublet agreement during the first quarter of 2011. ENSCO 8502 and ENSCO 8503 are expected to commence drilling operations in the U.S. Gulf of Mexico under two-year contracts during 2011.
During 2009, we accepted delivery of ENSCO 8501, which commenced drilling operations in the U.S. Gulf of Mexico under a three-and-a-half year contract in October 2009.
|
|
(2)
|
In May 2011, midwater rigs were acquired in connection with the Merger. Therefore, our rig fleet did not consist of midwater rigs as of December 31, 2010, 2009 and 2008.
|
(3)
|
In July 2010, we acquired an ultra-high specification jackup rig. The rig was renamed ENSCO 109 and is currently operating offshore Australia.
|
|
(4)
|
The total number of rigs for each period excludes rigs reclassified to discontinued operations.
|
2010
|
2009
|
2008
|
|||||
Rig utilization(1)
|
|||||||
Deepwater
|
81%
|
85%
|
95%
|
||||
Midwater(3)
|
N/A
|
N/A
|
N/A
|
||||
Jackup(4)
|
77%
|
74%
|
96%
|
||||
Total
|
77%
|
75%
|
96%
|
||||
Average day rates(2)
|
|||||||
Deepwater
|
$375,098
|
$425,190
|
$334,688
|
||||
Midwater(3)
|
N/A
|
N/A
|
N/A
|
||||
Jackup(4)
|
106,007
|
151,636
|
152,418
|
||||
Total
|
$128,784
|
$163,568
|
$155,767
|
(1)
|
Rig utilization is derived by dividing the number of days under contract by the number of days in the period. Days under contract equals the total number of days that rigs have earned a day rate, including days associated with compensated downtime and mobilizations. For newly constructed or acquired rigs, the number of days in the period begins upon commencement of drilling operations for rigs with a contract or when the rig becomes available for drilling operations for rigs without a contract.
|
|
(2)
|
Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues and lump sum revenues, by the aggregate number of contract days, adjusted to exclude contract days associated with certain mobilizations, demobilizations, shipyard contracts and standby contracts.
|
|
(3) |
Rig utilization and average day rates were not applicable for the Midwater segment as our rig fleet did not consist of midwater rigs during each of the years in the three-year period ended December 31, 2010.
|
|
(4)
|
ENSCO 69 has been excluded from rig utilization and average day rates for our Jackup operating segment during the period the rig was controlled and operated by Petrosucre, a subsidiary of Petróleos de Venezuela S.A., the national oil company of Venezuela (January 2009 - August 2010). See Note 11 to our consolidated financial statements for additional information on ENSCO 69.
|
|
|||||||
|
|
Operating
|
|||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|
Revenues
|
$475.2
|
$ --
|
$1,221.6
|
$ --
|
$1,696.8
|
$ --
|
$1,696.8
|
Operating expenses
Contract drilling (exclusive
of depreciation)
|
176.1
|
--
|
578.2
|
13.8
|
768.1
|
--
|
768.1
|
Depreciation
|
44.8
|
--
|
167.8
|
2.4
|
215.0
|
1.3
|
216.3
|
General and administrative
|
--
|
--
|
--
|
--
|
--
|
86.1
|
86.1
|
Operating income (loss)
|
$254.3
|
$ --
|
$ 475.6
|
$(16.2)
|
$ 713.7
|
$(87.4)
|
$ 626.3
|
|
|||||||
|
|
Operating
|
|||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|
Revenues
|
$254.1
|
$ --
|
$1,634.8
|
$ --
|
$1,888.9
|
$ --
|
$1,888.9
|
Operating expenses
Contract drilling (exclusive
of depreciation)
|
108.1
|
--
|
599.0
|
1.9
|
709.0
|
--
|
709.0
|
Depreciation
|
22.2
|
--
|
162.9
|
3.1
|
188.2
|
1.3
|
189.5
|
General and administrative
|
--
|
--
|
--
|
--
|
--
|
64.0
|
64.0
|
Operating income (loss)
|
$123.8
|
$ --
|
$ 872.9
|
$ (5.0)
|
$ 991.7
|
$(65.3)
|
$ 926.4
|
|
|||||||
|
|
Operating
|
|||||
|
|
|
Segments
|
Reconciling
|
Consolidated
|
||
Deepwater
|
Midwater
|
Jackup
|
Other
|
Total
|
Items
|
Total
|
|
Revenues
|
$ 84.4
|
$ --
|
$2,144.0
|
$ 14.2
|
$2,242.6
|
$ --
|
$2,242.6
|
Operating expenses
Contract drilling (exclusive
of depreciation)
|
31.2
|
--
|
696.5
|
8.6
|
736.3
|
--
|
736.3
|
Depreciation
|
9.1
|
--
|
158.3
|
3.3
|
170.7
|
1.9
|
172.6
|
General and administrative
|
--
|
--
|
--
|
--
|
--
|
53.8
|
53.8
|
Operating income (loss)
|
$ 44.1
|
$ --
|
$1,289.2
|
$ 2.3
|
$1,335.6
|
$(55.7)
|
$1,279.9
|
2010
|
2009
|
2008
|
|||||||
|
|||||||||
Interest income
|
|
$ .7
|
|
$ 2.2
|
|
$ 14.0
|
|||
Interest expense, net:
|
|||||||||
Interest expense
|
(21.3
|
)
|
(20.9
|
)
|
(21.6
|
)
|
|||
Capitalized interest
|
21.3
|
20.9
|
21.6
|
||||||
--
|
--
|
--
|
|||||||
Other, net
|
17.5
|
6.6
|
(18.2
|
)
|
|||||
|
$ 18.2
|
|
$ 8.8
|
|
$ (4.2
|
)
|
2010
|
2009
|
2008
|
|||||
Revenues
|
$12.5
|
$83.0
|
$244.0
|
||||
Operating expenses
|
17.1
|
54.2
|
89.3
|
||||
Operating (loss) income before income taxes
|
(4.6
|
) |
28.8
|
154.7
|
|||
Income tax (benefit) expense
|
(3.4
|
) |
(.5
|
) |
27.8
|
||
Gain (loss) on disposal of discontinued operations, net
|
38.6
|
|
--
|
|
(23.5
|
)
|
|
Income from discontinued operations
|
$37.4
|
$29.3
|
$103.4
|
|
2010
|
2009
|
2008
|
||||
Cash flows from operating activities of continuing operations
|
$816.7
|
$1,185.6
|
$1,014.7
|
|||
Capital expenditures on continuing operations:
|
||||||
New rig construction
|
$567.5
|
$ 623.4
|
$ 651.5
|
|||
Rig acquisition | 184.2 | -- | -- | |||
Minor upgrades and improvements
|
87.3
|
80.8
|
79.0
|
|||
Rig enhancements
|
36.3
|
153.0
|
33.7
|
|||
$875.3
|
$ 857.2
|
$ 764.2
|
2010
|
2009
|
2008
|
|||||
Long-term debt
|
$ 240.1
|
$ 257.2
|
$ 274.3
|
||||
Total capital*
|
6,199.6
|
5,756.4
|
4,951.2
|
||||
Long-term debt to total capital
|
3.9%
|
4.5%
|
5.5%
|
*
|
Total capital includes long-term debt plus Ensco shareholders' equity.
|
Payments due by period
|
||||||||||
2012
|
2014
|
|||||||||
and
|
and
|
After
|
||||||||
2011
|
2013
|
2015
|
2015
|
Total
|
||||||
New rig construction agreements(1)
|
$ 435.6
|
$223.9
|
$ --
|
$ --
|
$ 659.5
|
|||||
Principal payments on long-term debt
|
17.2
|
34.4
|
34.4
|
172.4
|
258.4
|
|||||
Interest payments on long-term debt
|
16.7
|
30.3
|
26.2
|
131.5
|
204.7
|
|||||
Operating leases
|
8.2
|
6.3
|
4.2
|
5.3
|
24.0
|
|||||
Total contractual obligations(2)(3)
|
$477.7
|
$294.9
|
$64.8
|
$309.2
|
$1,146.6
|
(1) |
In February 2011, we entered into agreements to construct two ultra-high specification harsh environment jackup rigs. The amounts disclosed above exclude construction obligations of $87.6 million for 2011 and $350.2 million for 2013 related to these rigs.
In connection with the aforementioned agreements to construct two new jackup rigs, we agreed with the shipyard contractor to defer $340.0 million of contractual commitments due during 2011 related to the construction of ENSCO 8505 and ENSCO 8506 until the rigs are delivered during the first and second half of 2012, respectively. The amounts disclosed above exclude the aforementioned deferral of contractual commitments.
|
(2) |
Contractual obligations do not include $13.7 million of unrecognized tax benefits included on our consolidated balance sheet as of December 31, 2010. Substantially all of our unrecognized tax benefits relate to uncertain tax positions that were not under review by taxing authorities. Therefore, we are unable to specify the future periods in which we may be obligated to settle such amounts.
|
(3) |
Contractual obligations do not include foreign currency forward contracts ("derivatives"). As of December 31, 2010, we had derivatives outstanding to exchange an aggregate $239.9 million U.S. dollars for various foreign currencies, including $121.0 million for Singapore dollars. As of December 31, 2010, our consolidated balance sheet included net derivative assets of $16.4 million. All of our outstanding derivatives mature during the next 18 months.
|
2010
|
2009
|
2008
|
|||||
Cash and cash equivalents
|
$1,050.7
|
$1,141.4
|
$789.6
|
||||
Working capital
|
1,087.7
|
1,167.9
|
973.0
|
||||
Current ratio
|
4.1
|
3.4
|
3.3
|
Increase (decrease) in
useful lives of our
drilling rigs
|
Estimated increase (decrease) in
depreciation expense that would
have been recognized (in millions)
|
||
10%
|
$(29.3)
|
||
20%
|
(46.2)
|
||
(10%)
|
13.1
|
||
(20%)
|
42.5
|
•
|
The IRS and HMRC may disagree with our interpretation of tax laws, treaties, or regulations with respect to the redomestication.
|
|
•
|
During recent years, the number of tax jurisdictions in which we conduct operations has increased, and we currently anticipate that this trend will continue.
|
|
•
|
In order to utilize tax planning strategies and conduct operations efficiently, our subsidiaries frequently enter into transactions with affiliates that are generally subject to complex tax regulations and are frequently reviewed by tax authorities.
|
|
•
|
We may conduct future operations in certain tax jurisdictions where tax laws are not well developed, and it may be difficult to secure adequate professional guidance.
|
|
•
|
Tax laws, regulations, agreements and treaties change frequently, requiring us to modify existing tax strategies to conform to such changes.
|
22
|
•
|
market price of oil and natural gas and the stability thereof,
|
|
•
|
production levels and related activities of the Organization of Petroleum Exporting Countries ("OPEC") and other oil and natural gas producers,
|
|
•
|
global oil supply and demand,
|
|
•
|
regional natural gas supply and demand,
|
|
•
|
worldwide expenditures for offshore oil and natural gas drilling,
|
|
•
|
long-term effect of worldwide energy conservation measures,
|
|
•
|
applicable regulatory and legislative restrictions, | |
•
|
the development and use of alternatives to hydrocarbon-based energy sources, and
|
|
•
|
worldwide economic activity.
|
•
|
contract duration extending over a specific period of time or a period necessary to drill one or more wells,
|
|
•
|
term extension options in favor of our customer, generally exercisable upon advance notice to us, at mutually agreed, indexed or fixed rates,
|
|
•
|
provisions permitting early termination of the contract (i) if the rig is lost or destroyed or (ii) by the customer if operations are suspended for a specified period of time due to breakdown of major rig equipment, unsatisfactory performance, "force majeure" events beyond the control of either party or other specified conditions,
|
•
|
some of our drilling contracts permit early termination of the contract by the customer for convenience (without cause), generally exercisable upon advance notice and in some cases without making an early termination payment to us,
|
|
•
|
payment of compensation to us (generally in U.S. dollars although some contracts require a portion of the compensation to be paid in local currency) on a "day work" basis such that we receive a fixed amount for each day ("day rate") that the drilling unit is operating under contract (lower rates or no payments ("zero rate") generally apply during periods of equipment breakdown and repair or in the event operations are suspended or interrupted by other specified conditions, some of which may be beyond our control),
|
|
•
|
payment by us of the operating expenses of the drilling unit, including crew labor and incidental rig supply costs, and
|
|
•
|
provisions in term contracts allowing us to recover certain labor and other operating cost increases from our customers through day rate adjustment or otherwise.
|
2011(1)
|
2010(1)
|
||||
Deepwater
|
$1,723
|
.4
|
$1,689
|
.9
|
|
Midwater(2)
|
|
--
|
|
--
|
|
Jackup
|
1,345
|
.3
|
1,265
|
.2
|
|
Total
|
$3,068
|
.7
|
$2,955
|
.1
|
|
(1) |
Backlog includes revenues realized during January of the respective year.
|
(2) | In May 2011, midwater rigs were acquired in connection with the Merger. Therefore, our rig fleet did not consist of midwater rigs as of February 1, 2011 and 2010. |
2011 (1)
|
2012
|
2013
|
2014
and Beyond
|
Total
|
|||||||
Deepwater
|
$ 535
|
.5
|
$731
|
.8
|
$428
|
.3
|
$27
|
.8
|
$1,723
|
.4
|
|
Midwater(2)
|
|
--
|
|
--
|
|
--
|
--
|
|
--
|
||
Jackup
|
834
|
.2
|
257
|
.8
|
74
|
.2
|
179 |
.1
|
1,345
|
.3
|
|
Total
|
$1,369
|
.7
|
$989
|
.6
|
$502
|
.5
|
$206
|
.9
|
$3,068
|
.7
|
(1) |
Backlog for the year ended December 31, 2011 includes revenues realized during January 2011.
|
(2) | In May 2011, midwater rigs were acquired in connection with the Merger. Therefore, our rig fleet did not consist of midwater rigs as of February 1, 2011. |
•
|
terrorist acts, war and civil disturbances,
|
|
•
|
expropriation, nationalization, deprivation or confiscation of our equipment,
|
|
•
|
expropriation or nationalization of a customer's property or drilling rights,
|
|
•
|
repudiation or nationalization of contracts,
|
|
•
|
assaults on property or personnel,
|
|
•
|
piracy, kidnapping and extortion demands,
|
|
•
|
exchange restrictions,
|
|
•
|
currency fluctuations,
|
|
•
|
changes in the manner or rate of taxation,
|
|
•
|
limitations on our ability to recover amounts due,
|
|
•
|
increased risk of government and/or vendor/supplier corruption,
|
|
•
|
changes in political conditions, and
|
|
•
|
changes in monetary policies.
|
Name
|
Age
|
Position
|
||
Daniel W. Rabun
|
56
|
Chairman, President and Chief Executive Officer
|
||
William S. Chadwick, Jr.
|
63
|
Executive Vice President - Chief Operating Officer
|
||
John Mark Burns
|
54
|
Senior Vice President
|
||
Patrick Carey Lowe
|
52
|
Senior Vice President
|
||
James W. Swent III
|
60
|
Senior Vice President - Chief Financial Officer
|
||
David A. Armour
|
53
|
Vice President - Finance
|
||
John Knowlton | 51 | Vice President - Engineering and Capital Projects | ||
H. E. Malone, Jr.
|
67
|
Vice President and Assistant Secretary
|
||
Cary A. Moomjian, Jr.
|
63
|
Vice President, General Counsel and Secretary
|
||
Sean P. O'Neill
|
47
|
Vice President - Investor Relations
|
||
Michael K. Wiley | 51 | Vice President - Human Resources and Security | ||
Michael B. Howe
|
44
|
Treasurer
|
||
Douglas J. Manko
|
36
|
Controller and Assistant Secretary
|
||
11
|
Description Of The Business And Summary Of Significant Accounting Policies (Reconciliation Of Weighted-Average Shares Used In Basic And Diluted EPS) (Details)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Description Of The Business And Summary Of Significant Accounting Policies [Abstract] | |||
Weighted-average shares - basic | 141.0 | 140.4 | 141.6 |
Potentially dilutive share options | 0 | 0.1 | 0.3 |
Weighted-average shares - diluted | 141.0 | 140.5 | 141.9 |
Derivative Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Derivative [Line Items] | |||
Net foreign currency derivative assets included on balance sheet | $ 16.4 | $ 13.2 | |
Not Designated [Member]
|
|||
Derivative [Line Items] | |||
Net losses on derivatives not designated as hedging instruments | 3.5 | ||
Net gains on derivatives not designated as hedging instruments | 2.9 | 4.6 | |
Foreign Exchange [Member] | Cash Flow Hedging [Member]
|
|||
Derivative [Line Items] | |||
Aggregate cash flow hedges outstanding | 216.4 | ||
Singapore dollars | 118.8 | ||
British pounds | 77.6 | ||
Australian dollars | 9.2 | ||
Other currencies | 10.8 | ||
Foreign Exchange [Member] | Not Designated [Member]
|
|||
Derivative [Line Items] | |||
Singapore dollars | 2.2 | ||
Australian dollars | 15.3 | ||
Malaysian ringgits dollars | 3.0 | ||
Other currencies | 3.0 | ||
Aggregate derivatives not designated as hedging instruments outstanding | $ 23.5 |
Income Taxes (Significant Components Of Deferred Income Tax Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2010
|
Dec. 31, 2009
|
---|---|---|
Deferred tax assets: | ||
Deferred Tax Assets, Deferred revenue | $ 28.9 | $ 34.1 |
Employee benefits, including share-based compensation | 21.1 | 25.6 |
Other | 10.9 | 18.3 |
Total deferred tax assets | 60.9 | 78.0 |
Deferred tax liabilities: | ||
Property and equipment | (335.6) | (348.9) |
Intercompany transfers of property | (35.2) | (45.5) |
Deferred costs | (24.5) | (23.5) |
Other | (14.3) | (7.7) |
Total deferred tax liabilities | (409.6) | (425.6) |
Net deferred tax liability | (348.7) | (347.6) |
Taxes payable | ||
Net current deferred tax asset | 9.3 | 29.7 |
Net noncurrent deferred tax liability | (358.0) | (377.3) |
Net deferred tax liability | $ (348.7) | $ (347.6) |
Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2010
|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Auction rate securities par value | $ 50.1 | $ 66.8 | |
Loss on asset impairment | $ 12.2 | $ 12.2 | $ 17.3 |
Debentures, 7.20% [Member]
|
|||
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | ||
Bonds, Including Current Maturities, 6.36% [Member]
|
|||
Debt Instrument, Interest Rate, Stated Percentage | 6.36% | ||
Bonds, Including Current Maturities, 4.65% [Member]
|
|||
Debt Instrument, Interest Rate, Stated Percentage | 4.65% |
Long-Term Debt (Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2010
|
Dec. 31, 2009
|
---|---|---|
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Long-term debt gross | $ 257.3 | $ 274.4 |
Less current maturities | (17.2) | (17.2) |
Total long-term debt | 240.1 | 257.2 |
7.20% Debentures Due 2027 [Member]
|
||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Total long-term debt | 148.9 | 148.9 |
Long-term debt interest rate | 7.20% | |
Long-term debt maturity year | 2027 | |
6.36% Bonds Due 2015 [Member]
|
||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Total long-term debt | 63.4 | 76.0 |
Long-term debt interest rate | 6.36% | |
Long-term debt maturity year | 2015 | |
4.65% Bonds Due 2020 [Member]
|
||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Total long-term debt | $ 45.0 | $ 49.5 |
Long-term debt interest rate | 4.65% | |
Long-term debt maturity year | 2020 |
Commitments And Contingencies (Tables)
|
12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
|||||||||||||||||||
Commitments And Contingencies [Abstract] | |||||||||||||||||||
Capital Commitments |
|
Segment Information (Segment Reporting On Individual Countries Total Revenues Long-Lived Assets ) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,696.8 | $ 1,888.9 | $ 2,242.6 |
Long-lived Assets | 5,049.9 | 4,477.3 | 3,871.3 |
United States [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 421.3 | 263.0 | 461.4 |
Long-lived Assets | 1,993.3 | 1,806.7 | 1,663.6 |
Australia [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 225.3 | 188.7 | 97.0 |
Long-lived Assets | 194.9 | 175.0 | 274.4 |
United Kingdom [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 219.0 | 353.2 | 478.3 |
Long-lived Assets | 429.2 | 457.4 | 309.0 |
Mexico [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 179.8 | 159.5 | 53.9 |
Long-lived Assets | 259.3 | 229.3 | 41.2 |
Indonesia [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 56.8 | 72.3 | 254.2 |
Long-lived Assets | 134.6 | 50.2 | 153.9 |
Singapore [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Long-lived Assets | 1,235.6 | 720.1 | 550.5 |
Other Countries [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenues | 594.6 | 852.2 | 897.8 |
Long-lived Assets | $ 803.0 | $ 1,038.6 | $ 878.7 |
Discontinued Operations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
Nov. 30, 2010
ENSCO 60 [Member]
|
Dec. 31, 2010
ENSCO 60 [Member]
|
Apr. 30, 2010
ENSCO 57 [Member]
|
Dec. 31, 2010
ENSCO 57 [Member]
|
Dec. 31, 2009
ENSCO 57 [Member]
|
Mar. 31, 2010
ENSCO 50 And ENSCO 51 [Member]
|
Dec. 31, 2010
ENSCO 50 And ENSCO 51 [Member]
|
Dec. 31, 2009
ENSCO 50 And ENSCO 51 [Member]
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from sale of rig | $ 1.5 | $ 2.6 | $ 4.7 | $ 25.7 | $ 47.1 | $ 94.7 | |||||
Pre-tax gain (loss) on sale of rig | 5.7 | 17.9 | 33.9 | ||||||||
Net book value and inventory and other assets | 20.0 | 29.2 | 60.8 | ||||||||
Deposit received from sale of rig | $ 4.7 | $ 4.7 |
Subsequent Event (Details) (USD $)
|
12 Months Ended | |
---|---|---|
Dec. 31, 2010
|
Feb. 06, 2011
|
|
Subsequent Event [Abstract] | ||
Cash that outstanding shares can be converted into if exercised properly and not withdrawn | $ 15.60 | |
Number of ADSs that outstanding shares can be converted into if properly exercised and not withdrawn | 0.4778 | |
Total consideration to be delivered in the merger | 7,400,000,000 | |
Cash to be delivered in the merger | 2,800,000,000 | |
Number of shares to be delivered in the merger | 86,000,000 | |
Aggregate value of the shares to be delivered in the merger | 4,550,000,000 | |
Closing price of Ensco ADSs | $ 52.88 | |
Estimated fair value of Pride employee stock options | 45,000,000 | |
Unsecured bridge term loan facility | $ 2,750,000,000 |
Fair Value Measurements (Summary Of Fair Value Measurements Of Auction Rate Securities Using Significant Level 3 Inputs) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
||||||
Fair Value Measurements [Abstract] | ||||||||
Beginning balance | $ 60.5 | $ 64.2 | ||||||
Purchases | 83.0 | |||||||
Sales | (16.7) | (5.5) | (10.7) | |||||
Unrealized gains (losses) | 0.7 | [1] | 1.8 | [1] | (8.1) | [1] | ||
Transfers in and/or out of Level 3 | ||||||||
Ending balance | $ 44.5 | $ 60.5 | $ 64.2 | |||||
|
Commitments And Contingencies (Capital Commitments) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2010
|
|
Commitments And Contingencies [Abstract] | |
2011 | $ 435.6 |
2012 | 223.9 |
Total | $ 659.5 |
Supplemental Financial Information (Schedule Of Repairs And Maintenance Expenses) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Supplemental Financial Information [Abstract] | |||
Repairs and maintenance expense | $ 120.0 | $ 120.6 | $ 111.4 |
Supplemental Financial Information (Schedule Of Accounts Receivable Net) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Supplemental Financial Information [Abstract] | ||
Trade | $ 209.9 | $ 310.1 |
Other | 7.8 | 17.9 |
Accounts receivable gross | 217.7 | 328.0 |
Allowance for doubtful accounts | (3.1) | (3.4) |
Accounts receivable, net | $ 214.6 | $ 324.6 |
Supplemental Financial Information (Schedule Of Interest And Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Supplemental Financial Information [Abstract] | |||
Interest, net of amounts capitalized | $ 0.1 | $ 0.1 | $ 0.5 |
Income taxes | $ 171.6 | $ 152.9 | $ 327.7 |
Income Taxes (Details Of The Consolidated Effective Income Tax Rate) (Details)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Income Taxes [Abstract] | |||
Statutory income tax rate | 28.00% | 35.00% | 35.00% |
Non-U.K./U.S. taxes | (18.40%) | (17.60%) | (19.20%) |
Amortization of deferred charges associated with intercompany rig sales | 2.70% | 1.80% | 1.30% |
Redomestication related income taxes | 0.00% | 0.90% | |
Net (benefit) expense in connection with resolutions of tax issues and adjustments relating to prior years | (0.50%) | (0.90%) | 0.50% |
Other | 3.10% | (0.20%) | |
Effective income tax rate | 14.90% | 19.20% | 17.40% |
Long-Term Debt (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2010
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Maturities Of Long-Term Debt, Excluding Unamortized Discounts |
|
Derivative Instruments (Gains And Losses On Derivatives Designated As Cash Flow Hedges) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | $ 7.6 | $ 13.5 | $ (16.4) | |||||||||
(Loss) Gain Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | 1.7 | (8.7) | (3.6) | |||||||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0.3 | [1] | (2.9) | [1] | (1.0) | [1] | ||||||
Interest Rate Contract [Member]
|
||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
(Loss) Gain Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | (0.6) | [2] | (0.7) | [2] | (0.7) | [2] | ||||||
Foreign Currency Forward Contracts [Member]
|
||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion) | 7.6 | [3] | 13.5 | [3] | (16.4) | [3] | ||||||
(Loss) Gain Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion) | 2.3 | [3] | (8.0) | [3] | (2.9) | [3] | ||||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 0.3 | [1],[3] | $ (2.9) | [1],[3] | $ (1.0) | [1],[3] | ||||||
|
Property And Equipment (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
|
Property, Plant and Equipment [Line Items] | ||
Construction work in progress | $ 1,519.0 | $ 1,303.1 |
Impairment loss on property and equipment | 12.2 | |
ENSCO 8500 Series
|
||
Property, Plant and Equipment [Line Items] | ||
Construction work in progress | $ 1,401.1 | $ 1,262.5 |
Description Of The Business And Summary Of Significant Accounting Policies (Assignment Of Goodwill To Operating Segments) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2010
|
Dec. 31, 2009
|
|||
---|---|---|---|---|---|
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Total | $ 336.2 | $ 336.2 | |||
Deepwater [Member]
|
|||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Total | 143.6 | ||||
Midwater [Member]
|
|||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Total | [1] | ||||
Jackup [Member]
|
|||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Total | $ 192.6 | ||||
|
Comprehensive Income (Components Of Other Comprehensive (Loss) Income, Net Of Tax) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
Sep. 30, 2010
|
Jun. 30, 2010
|
Mar. 31, 2010
|
Dec. 31, 2009
|
Sep. 30, 2009
|
Jun. 30, 2009
|
Mar. 31, 2009
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Comprehensive Income [Abstract] | |||||||||||
Net income | $ 134.3 | $ 132.1 | $ 127.9 | $ 191.6 | $ 210.2 | $ 150.8 | $ 201.4 | $ 222.1 | $ 585.9 | $ 784.5 | $ 1,156.7 |
Net change in fair value of derivatives | 7.6 | 13.5 | (16.4) | ||||||||
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income | (1.7) | 8.7 | 3.6 | ||||||||
Net other comprehensive income (loss) | 5.9 | 22.2 | (12.8) | ||||||||
Comprehensive income | 591.8 | 806.7 | 1,143.9 | ||||||||
Comprehensive income attributable to noncontrolling interests | (6.4) | (5.1) | (5.9) | ||||||||
Comprehensive income attributable to Ensco | $ 585.4 | $ 801.6 | $ 1,138.0 |
Benefit Plans (Summary Of The Value Of Non-Vested Share Awards Granted And Vested) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
|
Benefit Plans [Abstract] | |||
Weighted-average grant-date fair value of non-vested share awards grant (per share) | $ 35.81 | $ 40.91 | $ 67.99 |
Total fair value of non-vested share awards vested during the period (in millions) | $ 22.1 | $ 18.6 | $ 17.9 |
Long-Term Debt (Aggregate Maturities Of Long-Term Debt, Excluding Unamortized Discounts) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2010
|
---|---|
Long-Term Debt [Abstract] | |
2011 | $ 17.2 |
2012 | 17.2 |
2013 | 17.2 |
2014 | 17.2 |
2015 | 17.2 |
Thereafter | 172.4 |
Total | $ 258.4 |
Long-Term Debt
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2010
|
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Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | 4. LONG-TERM DEBT
Long-term debt as of December 31, 2010 and 2009 consisted of the following (in millions):
Debentures Due 2027
In November 1997, Ensco Delaware issued $150.0 million of unsecured 7.20% Debentures due November 15, 2027 (the "Debentures") in a public offering. Interest on the Debentures is payable semiannually in May and November and may be redeemed at any time at our option, in whole or in part, at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, and a make-whole premium. The indenture under which the Debentures were issued contains limitations on the incurrence of indebtedness secured by certain liens and limitations on engaging in certain sale/leaseback transactions and certain merger, consolidation or reorganization transactions. The Debentures are not subject to any sinking fund requirements. In December 2009, in connection with the redomestication, Ensco plc entered into a supplemental indenture to unconditionally guarantee the principal and interest payments on the Debentures. Bonds Due 2015 and 2020
In January 2001, a subsidiary of Ensco Delaware issued $190.0 million of 15-year bonds to provide long-term financing for ENSCO 7500. The bonds will be repaid in 30 equal semiannual principal installments of $6.3 million ending in December 2015. Interest on the bonds is payable semiannually, in June and December, at a fixed rate of 6.36%. In October 2003, a subsidiary of Ensco Delaware issued $76.5 million of 17-year bonds to provide long-term financing for ENSCO 105. The bonds will be repaid in 34 equal semiannual principal installments of $2.3 million ending in October 2020. Interest on the bonds is payable semiannually, in April and October, at a fixed rate of 4.65%. Both bond issuances are guaranteed by the United States of America, acting by and through the United States Department of Transportation, Maritime Administration ("MARAD"), and Ensco Delaware issued separate guaranties to MARAD, guaranteeing the performance of obligations under the bonds. In February 2010, the documents governing MARAD's guarantee commitments were amended to address certain changes arising from the redomestication and to include Ensco plc as an additional guarantor of the debt obligations.
Revolving Credit Facility
On May 28, 2010, we entered into an amended and restated agreement (the "2010 Credit Facility") with a syndicate of banks that provides for a $700.0 million unsecured revolving credit facility for general corporate purposes. The 2010 Credit Facility has a four-year term, expiring in May 2014, and replaces our $350.0 million five-year credit agreement which was scheduled to mature in June 2010. Advances under the 2010 Credit Facility generally bear interest at LIBOR plus an applicable margin rate (currently 2.0% per annum), depending on our credit rating. We are required to pay an annual undrawn facility fee (currently .25% per annum) on the total $700.0 million commitment, which is also based on our credit rating. We also are required to maintain a debt to total capitalization ratio less than or equal to 50% under the 2010 Credit Facility. We have the right, subject to lender consent, to increase the commitments under the 2010 Credit Facility up to $850.0 million. We had no amounts outstanding under the 2010 Credit Facility or the prior credit agreement as of December 31, 2010 and 2009, respectively.
Maturities
The aggregate maturities of our long-term debt, excluding unamortized discounts of $1.1 million, as of December 31, 2010 were as follows (in millions):
Interest expense totaled $21.3 million, $20.9 million and $21.6 million for the years ended December 31, 2010, 2009 and 2008, respectively. All interest expense incurred during each of the years in the three-year period ended December 31, 2010 was capitalized in connection with the construction of our ENSCO 8500 Series® rigs. |
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