REORGANIZATION (Tables)

3 Months Ended

Mar. 31, 2020

Reorganizations [Abstract]

Schedule of Reorganization Items

For the period ended March 31, 2020, reorganization items pertaining to continuing operations were $246 million and consisted of the following items:

	March 31, 2020
	(In millions)
Claims valuation adjustments	$	96
DIP Credit Facility fees		87
Professional fees and other		63
Total reorganization items, net	$	246

Schedule of Liabilities Subject to Compromise

At March 31, 2020, liabilities subject to compromise consisted of the following balances: 

	March 31, 2020
	(In millions)
Term facility	$	2,220
10.625% Senior Notes		1,300
Revolving credit facility		801
Accrued and unpaid interest		114
Allowed claims on Term facility and Revolving credit facility		96
Interest rate derivative		47
Total liabilities subject to compromise	$	4,578

Schedule of Consolidated Financial Statements of Entities Included in Chapter 11 Cases

The followings are the consolidated financial statements of the entities included in the Chapter 11 Cases (all intercompany balances due between Debtor entities have been eliminated):

McDERMOTT INTERNATIONAL, INC. DEBTOR ENTITIES (DEBTOR IN POSSESSION)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

	Three months ended,
	March 31, 2020
	(In millions)
Revenues	$	1,757
Costs and Expenses:
Cost of operations		1,732
Other operating expenses, net		1,087
Total operating expenses, net		2,819
Operating loss		(1,062	)
Other expense:
Interest expense, net		(58	)
Intercompany charges for interest		5
Reorganization items		(246	)
Other non-operating expense, net		(6	)
Total other expense, net		(305	)
Loss before provision for income taxes		(1,367	)
Income tax expense		6
Loss from continuing operations		(1,373	)
Loss from discontinued operations		(14	)
Net loss		(1,387	)
Less: Net income attributable to noncontrolling interests		6
Net loss attributable to Debtor entities	$	(1,393	)

McDERMOTT INTERNATIONAL, INC. DEBTOR ENTITIES (DEBTOR IN POSSESSION)

CONDENSED CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	March 31, 2020
		(In millions)
Assets
Current assets:
Cash and cash equivalents	$	990
Restricted cash and cash equivalents		397
Current assets of discontinued operations		2,451
Other current assets		2,015
Total current assets		5,853
Property, plant and equipment, net		1,171
Other non-current assets		1,695
Total assets	$	8,719
Liabilities, Mezzanine Equity and Stockholders' Equity
Current liabilities:
Debt	$	2,038
Current liabilities of discontinued operations		426
Advance billings on contracts, accounts payable, accrued and other current liabilities		3,149
Total current liabilities		5,613
Intercompany accounts payable		727
Other non-current liabilities		1,051
Total liabilities not subject to compromise		7,391
Liabilities subject to compromise		4,578
Mezzanine equity: Redeemable preferred stock		294
Debtor entities total McDermott stockholders' equity		(3,551	)
Noncontrolling interest		7
Debtor entities total stockholders' equity		(3,544	)
Debtor entities total liabilities and stockholders' equity	$	8,719

McDERMOTT INTERNATIONAL, INC. DEBTOR ENTITIES (DEBTOR IN POSSESSION)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

		Three months ended
		March 31, 2020
		(In millions)
Cash flows from operating activities:
Net loss	$		(1,387	)
Adjustments to reconcile net loss to cash flows from operating activities:
Reorganization items, net - Claims valuation adjustments			96
Reorganization items, net - DIP Credit Facility fees			87
Property, plant and equipment impairment			884
Goodwill and intangible assets impairment			94
Charges from parent of subsidiary			5
Other current and non-current assets and liabilities, net			(465	)
Total cash used in operating activities			(686	)
Cash flows from investing activities:
Purchases of property, plant and equipment			(25	)
Advances related to proportionately consolidated consortiums			(57	)
Other investing activities			(4	)
Total cash used in investing activities			(86	)
Cash flows from financing activities:
DIP Term Facility borrowings			1,200
DIP Credit Facility fees			(87	)
Advances related to equity method joint ventures and proportionately consolidated consortiums			69
Other financing activities among subsidiaries			(47	)
Other financing activities			(5	)
Total cash provided by financing activities			1,130
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(3	)
Net Increase in cash, cash equivalents and restricted cash			355
Cash, cash equivalents and restricted cash at beginning of period			1,032
Cash, cash equivalents and restricted cash at end of period	$		1,387