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Fair Value Measurements
12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS

The following fair value hierarchy table categorizes information regarding our net financial assets measured at fair value on a recurring basis as of December 31, 2016 and 2015 (in millions):

 
Quoted Prices in
Active Markets
for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
  (Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
As of December 31, 2016
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
27.7

 
$

 
$

 
$
27.7

Total financial assets
27.7

 

 

 
27.7

Derivatives, net

 
(8.8
)
 

 
(8.8
)
Total financial liabilities
$

 
$
(8.8
)
 
$

 
$
(8.8
)
As of December 31, 2015
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
33.1

 
$

 
$

 
$
33.1

Total financial assets
33.1

 

 

 
33.1

Derivatives, net

 
(19.7
)
 

 
(19.7
)
Total financial liabilities
$

 
$
(19.7
)
 
$

 
$
(19.7
)


Supplemental Executive Retirement Plans

Our Ensco supplemental executive retirement plans (the "SERP") are non-qualified plans that provide for eligible employees to defer a portion of their compensation for use after retirement. Assets held in the SERP were marketable securities measured at fair value on a recurring basis using Level 1 inputs and were included in other assets, net, on our consolidated balance sheets as of December 31, 2016 and 2015.  The fair value measurements of assets held in the SERP were based on quoted market prices. Net unrealized gains of $1.8 million, $700,000 and $2.3 million from marketable securities held in our SERP were included in other, net, in our consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014, respectively.
 
Derivatives

Our derivatives were measured at fair value on a recurring basis using Level 2 inputs as of December 31, 2016 and 2015.  See "Note 5 - Derivative Instruments" for additional information on our derivatives, including a description of our foreign currency hedging activities and related methodologies used to manage foreign currency exchange rate risk. The fair value measurements of our derivatives were based on market prices that are generally observable for similar assets or liabilities at commonly quoted intervals.

Other Financial Instruments

The carrying values and estimated fair values of our debt instruments as of December 31, 2016 and 2015 were as follows (in millions):
 
 
December 31, 2016
 
December 31, 2015
 
 
Carrying
Value
 
Estimated
  Fair
Value
 
Carrying
Value
 
Estimated
  Fair
Value
 
 
 
 
 
 
 
 
 
8.50% Senior notes due 2019
 
$
480.2

 
$
485.0

 
$
566.4

 
$
510.2

6.875% Senior notes due 2020
 
735.9

 
727.5

 
990.9

 
850.5

4.70% Senior notes due 2021
 
674.4

 
658.9

 
1,476.7

 
1,254.0

3.00% Exchangeable senior notes due 2024 (1)
 
604.3

 
874.7

 

 

4.50% Senior notes due 2024
 
618.6

 
536.0

 
619.7

 
417.4

5.20% Senior notes due 2025
 
662.8

 
582.3

 
692.5

 
505.2

7.20% Debentures due 2027
 
149.2

 
138.7

 
149.1

 
133.5

7.875% Senior notes due 2040
 
378.3

 
270.6

 
379.8

 
244.0

5.75% Senior notes due 2044
 
970.8

 
728.0

 
993.5

 
707.1

Total 
 
$
5,274.5

 
$
5,001.7

 
$
5,868.6

 
$
4,621.9



 (1)  
Our 2024 Convertible Notes were issued with a conversion feature. The 2024 Convertible Notes were separated into their liability and equity components on our consolidated balance sheet. The equity component was initially recorded to additional paid-in capital and as a debt discount, which will be amortized to interest expense. Excluding the unamortized discount, the carrying value of the 2024 Convertible Notes was $830.1 million as of December 31, 2016. See "Note 4 - Debt" for additional information on this issuance.

The estimated fair values of our senior notes and debentures were determined using quoted market prices. The decline in the carrying value of long-term debt instruments from December 31, 2015 to December 31, 2016 is primarily due to debt repurchases as discussed in "Note 4 - Debt". The estimated fair values of our cash and cash equivalents, short-term investments, receivables, trade payables and other liabilities approximated their carrying values as of December 31, 2016 and 2015.