XML 37 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Guarantee Of Registered Securities
3 Months Ended
Mar. 31, 2017
Guarantees [Abstract]  
Guarantee Of Registered Securities
Guarantee of Registered Securities

In connection with the Pride acquisition, Ensco plc and Pride entered into a supplemental indenture to the indenture dated as of July 1, 2004 between Pride and the Bank of New York Mellon, as indenture trustee, providing for, among other matters, the full and unconditional guarantee by Ensco plc of Pride’s 8.5% unsecured senior notes due 2019, 6.875% unsecured senior notes due 2020 and 7.875% unsecured senior notes due 2040, which had an aggregate outstanding principal balance of $1.1 billion as of March 31, 2017. The Ensco plc guarantee provides for the unconditional and irrevocable guarantee of the prompt payment, when due, of any amount owed to the holders of the notes.
 
Ensco plc is also a full and unconditional guarantor of the 7.2% debentures due 2027 issued by ENSCO International Incorporated during 1997, which had an aggregate outstanding principal balance of $150.0 million as of March 31, 2017.
    
Pride International LLC (formerly Pride International, Inc.) and Ensco International Incorporated are 100% owned subsidiaries of Ensco plc. All guarantees are unsecured obligations of Ensco plc ranking equal in right of payment with all of its existing and future unsecured and unsubordinated indebtedness.
   
The following tables present the unaudited condensed consolidating statements of operations for the three month periods ended March 31, 2017 and 2016; the unaudited condensed consolidating statements of comprehensive (loss) income for the three month periods ended March 31, 2017 and 2016; the condensed consolidating balance sheets as of March 31, 2017 (unaudited) and December 31, 2016; and the unaudited condensed consolidating statements of cash flows for the three month periods ended March 31, 2017 and 2016, in accordance with Rule 3-10 of Regulation S-X.

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2017
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING REVENUES
$
12.7

 
$
46.0

 
$

 
$
500.7

 
$
(88.3
)
 
$
471.1

OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
11.3

 
42.0

 

 
313.1

 
(88.3
)
 
278.1

Depreciation

 
4.2

 

 
105.0

 

 
109.2

General and administrative
11.5

 
.1

 

 
14.4

 

 
26.0

OPERATING (LOSS) INCOME
(10.1
)
 
(.3
)



68.2




57.8

OTHER (EXPENSE) INCOME, NET
(6.5
)
 
(31.3
)
 
(18.7
)
 
(7.7
)
 
6.5

 
(57.7
)
(LOSS) INCOME BEFORE INCOME TAXES
(16.6
)
 
(31.6
)

(18.7
)

60.5


6.5


.1

INCOME TAX PROVISION

 
14.6

 

 
9.5

 

 
24.1

DISCONTINUED OPERATIONS, NET

 

 

 
(.6
)
 

 
(.6
)
EQUITY IN (LOSSES) EARNINGS OF AFFILIATES, NET OF TAX
(9.1
)
 
54.9

 
26.3

 

 
(72.1
)
 

NET (LOSS) INCOME
(25.7
)

8.7


7.6


50.4


(65.6
)

(24.6
)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(1.1
)
 

 
(1.1
)
NET (LOSS) INCOME ATTRIBUTABLE TO ENSCO
$
(25.7
)
 
$
8.7


$
7.6


$
49.3


$
(65.6
)

$
(25.7
)
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2016
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING REVENUES
$
7.2

 
$
35.6

 
$

 
$
843.3

 
$
(72.1
)
 
$
814.0

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

 


Contract drilling (exclusive of depreciation)
7.2

 
35.7

 

 
392.9

 
(72.1
)
 
363.7

Depreciation

 
4.3

 

 
109.0

 

 
113.3

General and administrative
6.2

 
.1

 

 
17.1

 

 
23.4

OPERATING (LOSS) INCOME
(6.2
)

(4.5
)



324.3




313.6

OTHER (EXPENSE) INCOME, NET
(36.8
)
 
1.6

 
(19.1
)
 
(10.3
)
 

 
(64.6
)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(43.0
)

(2.9
)

(19.1
)

314.0




249.0

INCOME TAX PROVISION

 
31.0

 

 
40.4

 

 
71.4

DISCONTINUED OPERATIONS, NET

 

 

 
(.9
)
 

 
(.9
)
EQUITY IN EARNINGS OF AFFILIATES, NET OF TAX
218.3

 
33.5

 
53.6

 

 
(305.4
)
 

NET INCOME (LOSS)
175.3

 
(.4
)

34.5


272.7


(305.4
)

176.7

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(1.4
)
 

 
(1.4
)
NET INCOME (LOSS) ATTRIBUTABLE TO ENSCO
$
175.3


$
(.4
)

$
34.5


$
271.3


$
(305.4
)

$
175.3




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Three Months Ended March 31, 2017
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET (LOSS) INCOME
$
(25.7
)
 
$
8.7

 
$
7.6

 
$
50.4

 
$
(65.6
)
 
$
(24.6
)
OTHER COMPREHENSIVE INCOME, NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives

 
3.1

 

 

 

 
3.1

Reclassification of net losses on derivative instruments from other comprehensive income into net income

 
.9

 

 

 

 
.9

Other

 

 

 
.5

 

 
.5

NET OTHER COMPREHENSIVE INCOME

 
4.0




.5




4.5

COMPREHENSIVE (LOSS) INCOME
(25.7
)
 
12.7


7.6


50.9


(65.6
)

(20.1
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(1.1
)
 

 
(1.1
)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ENSCO
$
(25.7
)
 
$
12.7


$
7.6


$
49.8


$
(65.6
)

$
(21.2
)

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2016
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
175.3

 
$
(.4
)
 
$
34.5

 
$
272.7

 
$
(305.4
)
 
$
176.7

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 

Net change in fair value of derivatives

 
3.5

 

 

 

 
3.5

Reclassification of net losses on derivative instruments from other comprehensive income into net income

 
5.9

 

 

 

 
5.9

Other

 

 

 
(.1
)
 

 
(.1
)
NET OTHER COMPREHENSIVE INCOME (LOSS)


9.4




(.1
)


 
9.3

COMPREHENSIVE INCOME
175.3


9.0


34.5


272.6


(305.4
)
 
186.0

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(1.4
)
 

 
(1.4
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
175.3


$
9.0


$
34.5


$
271.2


$
(305.4
)

$
184.6




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
March 31, 2017
(in millions)
(Unaudited)

 
 Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
                          ASSETS 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
180.2

 
$

 
$
15.5

 
$
76.0

 
$

 
$
271.7

Short-term investments
1,800.1

 
5.5

 

 

 

 
1,805.6

Accounts receivable, net 
7.2

 

 

 
316.9

 

 
324.1

Accounts receivable from affiliates
418.3

 
298.0

 

 
373.0

 
(1,089.3
)
 

Other
.4

 
9.9

 

 
301.9

 

 
312.2

Total current assets
2,406.2

 
313.4


15.5


1,067.8


(1,089.3
)

2,713.6

PROPERTY AND EQUIPMENT, AT COST
1.8

 
121.6

 

 
13,178.3

 

 
13,301.7

Less accumulated depreciation
1.8

 
68.1

 

 
2,111.1

 

 
2,181.0

Property and equipment, net  

 
53.5




11,067.2




11,120.7

DUE FROM AFFILIATES
1,814.0

 
4,100.5

 
1,982.4

 
6,890.5

 
(14,787.4
)
 

INVESTMENTS IN AFFILIATES
8,549.6

 
3,517.2

 
1,087.6

 

 
(13,154.4
)
 

OTHER ASSETS, NET 

 
49.0

 

 
175.8

 
(86.8
)
 
138.0

 
$
12,769.8

 
$
8,033.6


$
3,085.5


$
19,201.3


$
(29,117.9
)

$
13,972.3

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
55.4

 
$
32.1

 
$
15.3

 
$
405.7

 
$

 
$
508.5

Accounts payable to affiliates
233.1

 
279.7

 
8.1

 
568.4

 
(1,089.3
)
 

Current maturities of long-term debt
2.7

 

 
34.9

 

 

 
37.6

Total current liabilities
291.2

 
311.8


58.3


974.1


(1,089.3
)

546.1

DUE TO AFFILIATES 
1,382.5

 
4,957.8

 
2,375.5

 
6,071.6

 
(14,787.4
)
 

LONG-TERM DEBT 
2,870.3

 
149.2

 
1,253.3

 
633.1

 

 
4,905.9

OTHER LIABILITIES

 
4.7

 

 
376.6

 
(86.8
)
 
294.5

ENSCO SHAREHOLDERS' EQUITY 
8,225.8

 
2,610.1

 
(601.6
)
 
11,141.3

 
(13,154.4
)
 
8,221.2

NONCONTROLLING INTERESTS

 

 

 
4.6

 

 
4.6

Total equity
8,225.8

 
2,610.1


(601.6
)

11,145.9


(13,154.4
)

8,225.8

 
$
12,769.8

 
$
8,033.6


$
3,085.5


$
19,201.3


$
(29,117.9
)

$
13,972.3





ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2016
(in millions)

 
 Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
                          ASSETS 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
892.6

 
$

 
$
19.8

 
$
247.3

 
$

 
$
1,159.7

Short-term investments
1,165.1

 
5.5

 

 
272.0

 

 
1,442.6

Accounts receivable, net 
6.8

 

 

 
354.2

 

 
361.0

Accounts receivable from affiliates
486.5

 
251.2

 

 
152.2

 
(889.9
)
 

Other
.1

 
6.8

 

 
309.1

 

 
316.0

Total current assets
2,551.1


263.5


19.8


1,334.8


(889.9
)

3,279.3

PROPERTY AND EQUIPMENT, AT COST
1.8

 
121.0

 

 
12,869.7

 

 
12,992.5

Less accumulated depreciation
1.8

 
63.8

 

 
2,007.6

 

 
2,073.2

Property and equipment, net  


57.2




10,862.1




10,919.3

DUE FROM AFFILIATES
1,512.2

 
4,513.8

 
1,978.8

 
7,234.4

 
(15,239.2
)
 

INVESTMENTS IN AFFILIATES
8,557.7

 
3,462.3

 
1,061.3

 

 
(13,081.3
)
 

OTHER ASSETS, NET 

 
81.5

 

 
181.1

 
(86.7
)
 
175.9

 
$
12,621.0


$
8,378.3


$
3,059.9


$
19,612.4


$
(29,297.1
)

$
14,374.5

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
44.1

 
$
45.2

 
$
28.3

 
$
404.9

 
$

 
$
522.5

Accounts payable to affiliates
38.8

 
208.4

 
5.9

 
636.8

 
(889.9
)
 

Current maturities of long-term debt
187.1

 

 
144.8

 

 

 
331.9

Total current liabilities
270.0


253.6


179.0


1,041.7


(889.9
)

854.4

DUE TO AFFILIATES 
1,375.8

 
5,367.6

 
2,040.7

 
6,455.1

 
(15,239.2
)
 

LONG-TERM DEBT 
2,720.2

 
149.2

 
1,449.5

 
623.7

 

 
4,942.6

OTHER LIABILITIES

 
2.9

 

 
406.3

 
(86.7
)
 
322.5

ENSCO SHAREHOLDERS' EQUITY 
8,255.0

 
2,605.0

 
(609.3
)
 
11,081.2

 
(13,081.3
)
 
8,250.6

NONCONTROLLING INTERESTS

 

 

 
4.4

 

 
4.4

Total equity
8,255.0

 
2,605.0


(609.3
)

11,085.6


(13,081.3
)

8,255.0

      
$
12,621.0

 
$
8,378.3


$
3,059.9


$
19,612.4


$
(29,297.1
)

$
14,374.5



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2017
(in millions)
(Unaudited)
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International LLC
 
Other Non-guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Net cash provided by (used in) operating activities
$
.2

 
$
(19.5
)
 
$
(41.3
)
 
$
165.2

 
$

 
$
104.6

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Purchases of short-term investments
(965.0
)
 

 

 

 

 
(965.0
)
Maturities of short-term investments
330.0

 

 

 
272.0

 

 
602.0

Additions to property and equipment 

 

 

 
(282.6
)
 

 
(282.6
)
Repurchase of affiliate debt
(151.1
)
 

 

 

 
151.1

 

Other

 

 

 
.2

 

 
.2

Net cash used in investing activities 
(786.1
)
 




(10.4
)

151.1


(645.4
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 


Reduction of long-term borrowings
(185.5
)
 

 

 

 
(151.1
)
 
(336.6
)
Debt financing costs
(4.5
)
 

 

 

 

 
(4.5
)
Cash dividends paid
(3.2
)
 

 

 

 

 
(3.2
)
Advances from (to) affiliates
268.2

 
19.5

 
37.0

 
(324.7
)
 

 

Other
(1.5
)
 

 

 
(.9
)
 

 
(2.4
)
Net cash provided by (used in) financing activities
73.5

 
19.5


37.0


(325.6
)

(151.1
)

(346.7
)
Net cash used in discontinued operations

 

 

 
(.6
)
 

 
(.6
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
.1

 

 
.1

NET DECREASE IN CASH AND CASH EQUIVALENTS
(712.4
)
 


(4.3
)

(171.3
)



(888.0
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
892.6

 

 
19.8

 
247.3

 

 
1,159.7

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
180.2

 
$

 
$
15.5

 
$
76.0

 
$

 
$
271.7


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2016
(in millions)
(Unaudited)
 
Ensco plc
 
ENSCO International Incorporated 
 
Pride International LLC
 
Other Non-guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Net cash (used in) provided by operating activities of continuing operations
$
(46.3
)
 
$
.7

 
$
(39.2
)
 
$
317.9

 
$

 
$
233.1

INVESTING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 
Additions to property and equipment 

 

 

 
(158.1
)
 

 
(158.1
)
Purchases of short-term investments
965.0

 

 

 

 

 
965.0

Maturities on short-term investments
(80.0
)
 

 

 

 

 
(80.0
)
Other

 

 

 
.1

 

 
.1

Net cash provided by (used in) investing activities of continuing operations  
885.0

 

 

 
(158.0
)
 

 
727.0

FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 
Cash dividends paid
(2.4
)
 

 

 

 

 
(2.4
)
Advances from (to) affiliates
119.8

 
(.7
)
 
39.2

 
(158.3
)
 

 

Other
(.4
)
 

 

 
(.1
)
 

 
(.5
)
Net cash provided by (used in) financing activities
117.0

 
(.7
)
 
39.2

 
(158.4
)
 

 
(2.9
)
Net cash provided by discontinued operations

 

 

 
5.6

 

 
5.6

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(.1
)
 

 
(.1
)
NET INCREASE IN CASH AND CASH EQUIVALENTS
955.7

 

 

 
7.0

 

 
962.7

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
94.0

 

 
2.0

 
25.3

 

 
121.3

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
1,049.7

 
$

 
$
2.0

 
$
32.3

 
$

 
$
1,084.0