ENSCO PLC, 10-K filed on 2/22/2013
Annual Report
Document And Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Feb. 14, 2013
Jun. 30, 2012
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2012 
 
 
Entity Registrant Name
Ensco plc 
 
 
Entity Central Index Key
0000314808 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Document Fiscal Year Focus
2012 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 9,156.83 
Entity Common Shares, Shares Outstanding
 
232,709,320 
 
Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Statement [Abstract]
 
 
 
OPERATING REVENUES
$ 4,300.7 
$ 2,797.7 
$ 1,674.2 
OPERATING EXPENSES
 
 
 
Contract drilling (exclusive of depreciation)
2,028.0 
1,449.1 
741.8 
Depreciation
558.6 
408.9 
210.4 
General and administrative
148.9 
158.6 
86.1 
Total operating expenses
2,735.5 
2,016.6 
1,038.3 
OPERATING INCOME
1,565.2 
781.1 
635.9 
OTHER INCOME (EXPENSE)
 
 
 
Interest income
22.8 
17.2 
0.7 
Interest expense, net
(123.6)
(95.9)
0 
Other, net
2.2 
20.8 
17.5 
Other income (expense), net
(98.6)
(57.9)
18.2 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
1,466.6 
723.2 
654.1 
PROVISION FOR INCOME TAXES
 
 
 
Current income tax expense
226.4 
134.9 
80.5 
Deferred income tax expense (benefit)
18.0 
(19.5)
16.7 
Total provision for income taxes
244.4 
115.4 
97.2 
INCOME FROM CONTINUING OPERATIONS
1,222.2 
607.8 
556.9 
DISCONTINUED OPERATIONS
 
 
 
Loss from discontinued operations, net
(29.0)
(4.0)
(9.6)
(Loss) gain on disposal of discontinued operations, net
(16.5)
1.8 
38.6 
DISCONTINUED OPERATIONS, NET
(45.5)
(2.2)
29.0 
NET INCOME
1,176.7 
605.6 
585.9 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(7.0)
(5.2)
(6.4)
NET INCOME ATTRIBUTABLE TO ENSCO
1,169.7 
600.4 
579.5 
EARNINGS PER SHARE - BASIC
 
 
 
Continuing operations
$ 5.24 
$ 3.10 
$ 3.86 
Discontinued operations
$ (0.19)
$ (0.01)
$ 0.20 
Total earnings per share - basic
$ 5.05 
$ 3.09 
$ 4.06 
EARNINGS PER SHARE - DILUTED
 
 
 
Continuing operations
$ 5.23 
$ 3.09 
$ 3.86 
Discontinued operations
$ (0.19)
$ (0.01)
$ 0.20 
Total earnings per share - diluted
$ 5.04 
$ 3.08 
$ 4.06 
NET INCOME ATTRIBUTABLE TO ENSCO SHARES - BASIC AND DILUTED
$ 1,157.4 
$ 593.5 
$ 572.1 
WEIGHTED-AVERAGE SHARES OUTSTANDING
 
 
 
Basic
229.4 
192.2 
141.0 
Diluted
229.7 
192.6 
141.0 
CASH DIVIDENDS PER SHARE
$ 1.5 
$ 1.40 
$ 1.075 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Statement of Other Comprehensive Income [Abstract]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$ 221.2 
$ 345.4 
$ 342.7 
$ 267.4 
$ 230.4 
$ 206.1 
$ 103.6 
$ 65.5 
$ 1,176.7 
$ 605.6 
$ 585.9 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
8.7 
0.1 
7.6 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0 
(5.5)
(1.7)
Other
 
 
 
 
 
 
 
 
2.8 
2.9 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
11.5 
(2.5)
5.9 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,188.2 
603.1 
591.8 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(7.0)
(5.2)
(6.4)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ 1,181.2 
$ 597.9 
$ 585.4 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 487.1 
$ 430.7 
Accounts receivable, net
811.4 
851.7 
Other
425.4 
398.9 
Total current assets
1,723.9 
1,681.3 
PROPERTY AND EQUIPMENT, AT COST
15,737.1 
14,483.4 
Less accumulated depreciation
2,591.5 
2,061.5 
Property and equipment, net
13,145.6 
12,421.9 
GOODWILL
3,274.0 
3,274.0 
OTHER ASSETS, NET
421.8 
521.6 
TOTAL ASSETS
18,565.3 
17,898.8 
CURRENT LIABILITIES
 
 
Accounts payable - trade
357.8 
644.4 
Accrued liabilities and other
584.4 
515.7 
Short-term debt
0 
125.0 
Current maturities of long-term debt
47.5 
47.5 
Total current liabilities
989.7 
1,332.6 
LONG-TERM DEBT
4,798.4 
4,877.6 
DEFERRED INCOME TAXES
351.7 
339.5 
OTHER LIABILITIES
573.4 
464.6 
COMMITMENTS AND CONTINGENCIES
   
   
ENSCO SHAREHOLDERS' EQUITY
 
 
Additional paid-in capital
5,398.7 
5,253.0 
Retained earnings
6,434.7 
5,613.1 
Accumulated other comprehensive income
20.1 
8.6 
Treasury shares, at cost, 5.3 million shares and 4.9 million shares
(31.0)
(19.1)
Total Ensco shareholders' equity
11,846.4 
10,879.3 
NONCONTROLLING INTERESTS
5.7 
5.2 
Total equity
11,852.1 
10,884.5 
Total liabilities and shareholders' equity
18,565.3 
17,898.8 
Class A Ordinary Shares, U.S. [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
23.8 
23.6 
Common Class B, Par Value In GBP [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
$ 0.1 
$ 0.1 
Consolidated Balance Sheets (Parenthetical)
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Class A Ordinary Shares, U.S. [Member]
USD ($)
Dec. 31, 2011
Class A Ordinary Shares, U.S. [Member]
USD ($)
Dec. 31, 2012
Common Class B, Par Value In GBP [Member]
GBP (£)
Dec. 31, 2011
Common Class B, Par Value In GBP [Member]
GBP (£)
Common shares, par value
 
 
$ 0.10 
$ 0.10 
£ 1 
£ 1 
Common shares, shares authorized
 
 
450,000,000 
450,000,000 
50,000 
50,000 
Common shares, shares issued
 
 
237,700,000 
235,800,000 
50,000 
50,000 
Treasury shares, shares held
5,300,000 
4,900,000 
 
 
 
 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
OPERATING ACTIVITIES
 
 
 
Net income
$ 1,176.7 
$ 605.6 
$ 585.9 
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
 
 
 
Discontinued operations, net
45.5 
2.2 
(29.0)
Depreciation expense
558.6 
408.9 
210.4 
Settlement of warranty or other claims
(57.9)
0 
0 
Share-based compensation expense
53.2 
47.7 
44.5 
Amortization of intangibles and other, net
(27.1)
(39.7)
31.3 
Deferred income tax expense (benefit)
18.0 
(19.5)
16.7 
Other
6.0 
(0.9)
6.6 
Changes in operating assets and liabilities:
 
 
 
Decrease (increase) in other assets
80.1 
(14.5)
(10.6)
Decrease (increase) in accounts receivable
28.1 
(244.8)
108.6 
Increase (decrease) in liabilities
319.0 
(13.2)
(157.4)
Net cash provided by operating activities of continuing operations
2,200.2 
731.8 
807.0 
INVESTING ACTIVITIES
 
 
 
Additions to property and equipment
(1,802.2)
(729.0)
(875.3)
Acquisition of Pride International, Inc., net of cash acquired
0 
(2,656.0)
0 
Other
(42.3)
0.8 
1.5 
Net cash used in investing activities of continuing operations
(1,844.5)
(3,384.2)
(873.8)
FINANCING ACTIVITIES
 
 
 
Cash dividends paid
(348.1)
(292.3)
(153.7)
Commercial paper borrowings, net
(125.0)
125.0 
0 
Reduction of long-term borrowings
(47.5)
(213.3)
(17.2)
Equity financing costs
66.7 
(70.5)
0 
Proceeds from exercise of share options
35.8 
39.9 
1.4 
Proceeds from issuance of senior notes
0 
2,462.8 
0 
Debt financing costs
0 
(31.8)
(6.2)
Other
(17.4)
(15.7)
(16.9)
Net cash (used in) provided by financing activities of continuing operations
(435.5)
2,004.1 
(192.6)
DISCONTINUED OPERATIONS
 
 
 
Operating activities
(13.1)
0.4 
11.1 
Investing activities
147.3 
28.7 
158.1 
Net cash provided by discontinued operations
134.2 
29.1 
169.2 
Effect of exchange rate changes on cash and cash equivalents
2.0 
(0.8)
(0.5)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
56.4 
(620.0)
(90.7)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
430.7 
1,050.7 
1,141.4 
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 487.1 
$ 430.7 
$ 1,050.7 
Description Of The Business And Summary Of Significant Accounting Policies
Description Of The Business And Summary Of Significant Accounting Policies
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
    Business
 
We are one of the leading providers of offshore contract drilling services to the international oil and gas industry. We own an offshore drilling rig fleet of 74 rigs, including rigs under construction, spanning most of the strategic, high-growth markets around the globe.  Our rig fleet includes nine drillships, 13 dynamically positioned semisubmersible rigs, six moored semisubmersible rigs and 46 jackup rigs.  Our fleet is the world's second largest amongst competitive rigs, our ultra-deepwater fleet is the newest in the industry and our premium jackup fleet is the largest of any offshore drilling company.  We currently have three technologically-advanced drillships and three ultra-premium harsh environment jackup rigs under construction as part of our ongoing strategy to continually expand and high-grade our fleet.

Our customers include most of the leading national and international oil companies, in addition to many independent operators. We are among the most geographically diverse offshore drilling companies, with current operations and drilling contracts spanning approximately 20 countries on six continents in nearly every major deepwater and shallow-water basin around the world. The regions in which we operate include major markets in Southeast Asia, Australia, the North Sea, Mediterranean, U.S. Gulf of Mexico, Mexico and the Middle East, as well as the fastest-growing deepwater markets in Brazil and West Africa, where some of the world's most prolific geology resides.

We provide drilling services on a "day rate" contract basis. Under day rate contracts, we provide a drilling rig and rig crews and receive a fixed amount per day for drilling a well. Our customers bear substantially all of the ancillary costs of constructing the well and supporting drilling operations, as well as the economic risk relative to the success of the well. In addition, our customers may pay all or a portion of the cost of moving our equipment and personnel to and from the well site. We do not provide "turnkey" or other risk-based drilling services.

Redomestication

In December 2009, we completed a reorganization of the corporate structure of the group of companies controlled by our predecessor, ENSCO International Incorporated ("Ensco Delaware"), pursuant to which an indirect, wholly-owned subsidiary merged with Ensco Delaware, and Ensco plc became our publicly-held parent company incorporated under English law (the "redomestication").
 
The redomestication was accounted for as an internal reorganization of entities under common control and, therefore, Ensco Delaware's assets and liabilities were accounted for at their historical cost basis and not revalued in the transaction. We remain subject to the U.S. Securities and Exchange Commission (the "SEC") reporting requirements, the mandates of the Sarbanes-Oxley Act of 2002, as amended, and the applicable corporate governance rules of the New York Stock Exchange ("NYSE"), and we will continue to report our consolidated financial results in U.S. dollars and in accordance with U.S. generally accepted accounting principles ("GAAP"). We also must comply with additional reporting requirements of English law.
 
Basis of Presentation—U.K. Companies Act 2006 Section 435 Statement

The accompanying consolidated financial statements have been prepared in accordance with GAAP, which the directors consider to be the most meaningful presentation of our results of operations and financial position.  The accompanying consolidated financial statements do not constitute statutory accounts required by the U.K. Companies Act 2006, which for the year ended December 31, 2012 will be prepared in accordance with generally accepted accounting principles in the U.K. and delivered to the Registrar of Companies in the U.K. following the annual general meeting of shareholders.  The U.K. statutory accounts are expected to include an unqualified auditor’s report, which is not expected to contain any references to matters on which the auditors drew attention by way of emphasis without qualifying the report or any statements under Sections 498(2) or 498(3) of the U.K. Companies Act 2006.
 
Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Ensco plc and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year presentation.

Pervasiveness of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and disclosures of gain and loss contingencies as of the date of the financial statements. Actual results could differ from those estimates.

Foreign Currency Remeasurement and Translation

Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues and expenses are denominated in U.S. dollars; however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar ("foreign currencies"). These transactions are remeasured in U.S. dollars based on a combination of both current and historical exchange rates. Most transaction gains and losses, including certain gains and losses on our derivative instruments, are included in other, net, in our consolidated statement of income.  Certain gains and losses from the translation of foreign currency balances of our non-U.S. dollar functional currency subsidiaries are included in accumulated other comprehensive income on our consolidated balance sheet.  We incurred net foreign currency exchange losses of $3.5 million and net foreign currency exchange gains of $16.9 million and $3.5 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Cash Equivalents and Short-Term Investments

Highly liquid investments with maturities of three months or less at the date of purchase are considered cash equivalents. Highly liquid investments with maturities of greater than three months but less than one year as of the date of purchase are classified as short-term investments.

Short-term investments, consisting of time deposits with initial maturities in excess of three months but less than one year, were included in other current assets on our consolidated balance sheet and totaled $50.0 million and $4.5 million as of December 31, 2012 and 2011, respectively. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our consolidated statement of cash flows for the year ended December 31, 2012 and 2011.
    
Property and Equipment

All costs incurred in connection with the acquisition, construction, major enhancement and improvement of assets are capitalized, including allocations of interest incurred during periods that our drilling rigs are under construction or undergoing major enhancements and improvements. Repair and maintenance costs are charged to contract drilling expense in the period in which they occur. Upon sale or retirement of assets, the related cost and accumulated depreciation are removed from the balance sheet and the resulting gain or loss is included in contract drilling expense, unless reclassified to discontinued operations.

Our property and equipment is depreciated on a straight-line basis, after allowing for salvage values, over the estimated useful lives of our assets. Drilling rigs and related equipment are depreciated over estimated useful lives ranging from four to 35 years.  Buildings and improvements are depreciated over estimated useful lives ranging from two to 30 years. Other equipment, including computer and communications hardware and software costs, is depreciated over estimated useful lives ranging from two to six years.
 
We evaluate the carrying value of our property and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For property and equipment used in our operations, recoverability generally is determined by comparing the carrying value of an asset to the expected undiscounted future cash flows of the asset. If the carrying value of an asset is not recoverable, the amount of impairment loss is measured as the difference between the carrying value of the asset and its estimated fair value. Property and equipment held for sale is recorded at the lower of net book value or net realizable value.
    
We recorded a $12.2 million impairment charge on ENSCO I during 2010. The rig was sold during 2012 and we reclassified the rig's operating results, including the aforementioned 2010 impairment charge, to discontinued operations in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012.  If the global economy were to deteriorate and/or the offshore drilling industry were to incur a significant prolonged downturn, it is reasonably possible that impairment charges may occur with respect to specific individual rigs, groups of rigs, such as a specific type of drilling rig, or rigs in a certain geographic location.

Goodwill
 
Management of our business is a dynamic and constantly evolving process. This was especially true during 2011 and 2012 as we completed the Merger and executed integration activities. During the fourth quarter, the CODM evaluated the manner in which our business was being managed and concluded that distinctions in water depth capabilities for our floating rigs were no longer a significant factor in the performance assessment and resource allocation decision making process. The CODM requested that financial information previously disaggregated between floating rigs capable of drilling in 4,500 feet and greater (Deepwater) and floating rigs capable of drilling in 4,499 feet or less (Midwater) be combined into a single floaters category for internal financial reporting purposes effective for the fourth quarter of 2012. We now consider our drillship and semisubmersible rig fleet to be one operating segment.

Our business now consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which currently consists of management services on rigs owned by third-parties. Our two reportable segments, Floaters and Jackups, provide one service, contract drilling.
We test goodwill for impairment on an annual basis as of December 31 of each year or when events or changes in circumstances indicate that a potential impairment exists.  When testing goodwill for impairment, we perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount.

If we conclude that the fair value of one or both of our reporting units has more-likely-than-not declined below its carrying amount after qualitatively assessing existing facts and circumstances, we perform a quantitative assessment whereby we estimate the fair value of each reporting unit.  In most instances, our calculation of the fair value of our reporting units is based on estimates of future discounted cash flows to be generated by our drilling rigs in the reporting unit.

We performed quantitative assessments of both the current and historical reporting units and determined there was no impairment of goodwill as of December 31, 2012. However, if the global economy deteriorates and the offshore drilling industry was to incur a significant prolonged downturn, it is reasonably possible that our expectations of future cash flows may decline and ultimately result in a goodwill impairment. See "Note 9 - Goodwill and Other Intangible Assets and Liabilities" for additional information on our goodwill.
 
Operating Revenues and Expenses

Substantially all of our drilling contracts ("contracts") are performed on a day rate basis, and the terms of such contracts are typically for a specific period of time or the period of time required to complete a specific task, such as drill a well. Contract revenues and expenses are recognized on a per day basis, as the work is performed. Day rate revenues are typically earned, and contract drilling expense is typically incurred, on a uniform basis over the terms of our contracts.

In connection with some contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. Fees received for the mobilization or demobilization of equipment and personnel are included in operating revenues. The costs incurred in connection with the mobilization and demobilization of equipment and personnel are included in contract drilling expense.

Mobilization fees received and costs incurred are deferred and recognized on a straight-line basis over the period that the related drilling services are performed. Demobilization fees and related costs are recognized as incurred upon contract completion. Costs associated with the mobilization of equipment and personnel to more promising market areas without contracts are expensed as incurred.

Deferred mobilization costs were included in other current assets and other assets, net, on our consolidated balance sheets and totaled $54.5 million and $82.2 million as of December 31, 2012 and 2011, respectively. Deferred mobilization revenue was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $52.6 million and $104.3 million as of December 31, 2012 and 2011, respectively.

In connection with some contracts, we receive up-front lump-sum fees or similar compensation for capital improvements to our drilling rigs. Such compensation is deferred and recognized as revenue over the period that the related drilling services are performed. The cost of such capital improvements is capitalized and depreciated over the useful life of the asset. Deferred revenue associated with capital improvements was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $120.4 million and $37.9 million as of December 31, 2012 and 2011, respectively.

We must obtain certifications from various regulatory bodies in order to operate our drilling rigs and must maintain such certifications through periodic inspections and surveys. The costs incurred in connection with maintaining such certifications, including inspections, tests, surveys and drydock, as well as remedial structural work and other compliance costs, are deferred and amortized over the corresponding certification periods. Deferred regulatory certification and compliance costs were included in other current assets and other assets, net, on our consolidated balance sheets and totaled $14.4 million and $9.1 million as of December 31, 2012 and 2011, respectively.

In certain countries in which we operate, taxes such as sales, use, value-added, gross receipts and excise may be assessed by the local government on our revenues. We generally record our tax-assessed revenue transactions on a net basis in our consolidated statement of income.

Derivative Instruments

We use foreign currency forward contracts ("derivatives") to reduce our exposure to various market risks, primarily foreign currency exchange rate risk. See "Note 6 - Derivative Instruments" for additional information on how and why we use derivatives.

All derivatives are recorded on our consolidated balance sheet at fair value. Accounting for the gains and losses resulting from changes in the fair value of derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. Derivatives qualify for hedge accounting when they are formally designated as hedges and are effective in reducing the risk exposure that they are designated to hedge. Our assessment of hedge effectiveness is formally documented at hedge inception, and we review hedge effectiveness and measure any ineffectiveness throughout the designated hedge period on at least a quarterly basis.

Changes in the fair value of derivatives that are designated as hedges of the variability in expected future cash flows associated with existing recognized assets or liabilities or forecasted transactions ("cash flow hedges") are recorded in accumulated other comprehensive income ("AOCI").  Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transactions.

Gains and losses on a cash flow hedge, or a portion of a cash flow hedge, that no longer qualifies as effective due to an unanticipated change in the forecasted transaction are recognized currently in earnings and included in other, net, in our consolidated statement of income based on the change in the fair value of the derivative. When a forecasted transaction is no longer probable of occurring, gains and losses on the derivative previously recorded in AOCI are reclassified currently into earnings and included in other, net, in our consolidated statement of income.

We occasionally enter into derivatives that hedge the fair value of recognized assets or liabilities, but do not designate such derivatives as hedges or the derivatives otherwise do not qualify for hedge accounting. In these situations, there generally is a natural hedging relationship where changes in the fair value of the derivatives offset changes in the fair value of the underlying hedged items. Changes in the fair value of these derivatives are recognized currently in earnings in other, net, in our consolidated statement of income.

Derivatives with asset fair values are reported in other current assets or other assets, net, on our consolidated balance sheet depending on maturity date. Derivatives with liability fair values are reported in accrued liabilities and other, or other liabilities on our consolidated balance sheet depending on maturity date.

Income Taxes

We conduct operations and earn income in numerous countries. Current income taxes are recognized for the amount of taxes payable or refundable based on the laws and income tax rates in the taxing jurisdictions in which operations are conducted and income is earned.
 
Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of our assets and liabilities using the enacted tax rates in effect at year-end. A valuation allowance for deferred tax assets is recorded when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized.
    
We operate in jurisdictions where tax laws relating to the offshore drilling industry are not well developed and change frequently. Furthermore, we may enter into transactions with affiliates or employ other tax planning strategies that generally are subject to complex tax regulations. As a result of the foregoing, the tax liabilities and assets we recognize in our financial statements may differ from the tax positions taken, or expected to be taken, in our tax returns. Our tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to income taxes are included in current income tax expense in our consolidated statement of income.

Our drilling rigs frequently move from one taxing jurisdiction to another based on where they are contracted to perform drilling services. The movement of drilling rigs among taxing jurisdictions may involve a transfer of drilling rig ownership among our subsidiaries (“intercompany rig sale”). The pre-tax profit resulting from an intercompany rig sale is eliminated from our consolidated financial statements and the carrying value of a rig sold in an intercompany transaction remains at historical net depreciated cost prior to the transaction. Our consolidated financial statements do not reflect the asset disposition transaction of the selling subsidiary or the asset acquisition transaction of the acquiring subsidiary. Income taxes resulting from an intercompany rig sale, as well as the tax effect of any reversing temporary differences resulting from the sale, are deferred and amortized on a straight-line basis over the remaining useful life of the rig.

In some instances, we may determine that certain temporary differences will not result in a taxable or deductible amount in future years, as it is more-likely-than-not we will commence operations and depart from a given taxing jurisdiction without such temporary differences being recovered or settled. Under these circumstances, no future tax consequences are expected and no deferred taxes are recognized in connection with such operations. We evaluate these determinations on a periodic basis and, in the event our expectations relative to future tax consequences change, the applicable deferred taxes are recognized or derecognized.
   
We do not provide deferred taxes on the undistributed earnings of certain subsidiaries because our policy and intention is to reinvest such earnings indefinitely. See "Note 10 - Income Taxes" for additional information on our deferred taxes, unrecognized tax benefits, intercompany transfers of drilling rigs and undistributed earnings.
 
Share-Based Compensation

We sponsor share-based compensation plans that provide equity compensation to our key employees, officers and non-employee directors. Share-based compensation cost is measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). The amount of compensation cost recognized in our consolidated statement of income is based on the awards ultimately expected to vest and, therefore, reduced for estimated forfeitures. All changes in estimated forfeitures are based on historical experience and are recognized as a cumulative adjustment to compensation cost in the period in which they occur. See "Note 8 - Benefit Plans" for additional information on our share-based compensation.

Fair Value Measurements

We measure certain of our assets and liabilities based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3").  Level 2 measurements represent inputs that are observable for similar assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1.  See "Note 3 - Fair Value Measurements" for additional information on the fair value measurement of certain of our assets and liabilities.

Earnings Per Share
    
We compute basic and diluted earnings per share ("EPS") in accordance with the two-class method. Net income attributable to Ensco used in our computations of basic and diluted EPS is adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS includes the dilutive effect of share options using the treasury stock method and excludes non-vested shares.
 
The following table is a reconciliation of net income attributable to Ensco shares used in our basic and diluted EPS computations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
 
2012
 
2011
 
2010
Net income attributable to Ensco

$1,169.7

 

$600.4

 

$579.5

Net income allocated to non-vested share awards
(12.3
)
 
(6.9
)
 
(7.4
)
Net income attributable to Ensco shares

$1,157.4

 

$593.5

 

$572.1



The following table is a reconciliation of the weighted-average shares used in our basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2012 (in millions):

 
2012
 
2011
 
2010
Weighted-average shares - basic
229.4

 
192.2

 
141.0

Potentially dilutive share options
.3

 
.4

 
—

Weighted-average shares - diluted
229.7

 
192.6

 
141.0



Antidilutive share options totaling 400,000 for the years ended December 31, 2012 and 2011, and 1.1 million for the year ended December 31, 2010, were excluded from the computation of diluted EPS.
 
Noncontrolling Interests

Noncontrolling interests are classified as equity on our consolidated balance sheet and net income attributable to noncontrolling interests is presented separately on our consolidated statement of income.  Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries.
    
Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):

 
2012
 
2011
 
2010
Income from continuing operations
$
1,222.2

 
$
607.8

 
$
556.9

Income from continuing operations attributable to noncontrolling interests
(7.0
)
 
(5.2
)
 
(5.4
)
Income from continuing operations attributable to Ensco
$
1,215.2

 
$
602.6

 
$
551.5



Income from discontinued operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows:

 
2012
 
2011
 
2010
(Loss) income from discontinued operations
$
(45.5
)
 
$
(2.2
)
 
$
29.0

Income from discontinued operations attributable to
   noncontrolling interests
—

 
—

 
(1.0
)
(Loss) income from discontinued operations attributable to Ensco
$
(45.5
)
 
$
(2.2
)
 
$
28.0

 

New Accounting Pronouncements

In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("Update 2013-01"), an amendment to FASB ASC Topic 210. The update clarifies that the scope of Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities, applies to derivatives accounted for in accordance with FASB ASC Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments in Update 2013-01 are to be applied retrospectively for all comparative periods presented and are effective for the Company for annual and interim periods beginning January 1, 2013. We will adopt the accounting standard effective January 1, 2013. We do not expect that our adoption will have a material effect on our consolidated financial statements.
Acquisition Of Pride International, Inc.
Acquisition Of Pride International, Inc.
ACQUISITION OF PRIDE INTERNATIONAL, INC.
 
On May 31, 2011 (the "Merger Date"), Ensco plc completed a merger transaction (the "Merger") with Pride International, Inc., a Delaware corporation ("Pride"), Ensco Delaware, and ENSCO Ventures LLC, a Delaware limited liability company and an indirect, wholly-owned subsidiary of Ensco plc ("Merger Sub"). Pursuant to the merger agreement and subject to the conditions set forth therein, Merger Sub merged with and into Pride, with Pride as the surviving entity and an indirect, wholly-owned subsidiary of Ensco plc.

The Merger expanded our floater fleet with drillship assets, increased our presence in Angola and Brazil as well as various other major offshore drilling markets and established our fleet as the world's second largest competitive offshore drilling rig fleet.  
    Assets Acquired and Liabilities Assumed

The Merger was accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recorded at their estimated fair values as of the Merger Date. The excess of the consideration transferred over the estimated fair values of the net assets acquired was recorded as goodwill. The acquired assets and assumed liabilities were subject to adjustment during a one-year measurement period subsequent to the Merger Date as permitted under GAAP. During the second quarter of 2012, we finalized the determination of the fair values of the assets acquired and liabilities assumed as set forth below. The estimated fair values of certain assets and liabilities, primarily inventory, taxes and contingencies, required judgments and assumptions that resulted in adjustments made to these estimates during the measurement period.  
 
Amounts Recognized as of Merger Date
 
Measurement Period Adjustments(1)
 
Estimated Fair Value
Assets:
 

 
 

 
 

Cash and cash equivalents
$
147.0

 
$
—

 
$
147.0

Accounts receivable(2)
371.3

 
38.1

 
409.4

Other current assets
150.9

 
32.7

 
183.6

Property and equipment
6,758.8

 
(9.4
)
 
6,749.4

Other assets
343.7

 
27.8

 
371.5

Liabilities:
 

 
 

 
 

Accounts payable and accrued liabilities and other
539.8

 
60.6

 
600.4

Debt 
2,436.0

 
—

 
2,436.0

Deferred income tax liabilities
19.0

 
(.1
)
 
18.9

Other liabilities
319.8

 
7.7

 
327.5

Net assets acquired
4,457.1

 
21.0

 
4,478.1

Less merger consideration
7,415.9

 
—

 
7,415.9

Goodwill
$
2,958.8

 
$
(21.0
)
 
$
2,937.8


(1) 
In the second quarter of 2012, we completed our evaluation of the purchase price allocation. As a result, during 2012, we made adjustments to the estimated fair value of certain assets and liabilities with a corresponding net adjustment to goodwill amounting to $21.0 million, which are reflected in the amounts noted above. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Merger Date and did not result from subsequent intervening events.  These adjustments primarily related to inventory, contingencies and income taxes and did not have a material impact on our previously reported financial position or results of operations subsequent to the Merger Date; however, we have retrospectively revised our 2011 consolidated financial statements to reflect these adjustments as if they were recorded as of the Merger Date. 

(2) 
Gross contractual amounts receivable totaled $466.7 million as of the Merger Date.



Pro Forma Impact of the Merger
 
The following unaudited supplemental pro forma results for the years ended December 31, 2011 and 2010, gives effect to the Merger as if it had occurred January 1, 2010. The pro forma results include, among others,  (i) the amortization associated with the acquired intangible assets and liabilities; (ii) interest expense associated with debt used to fund a portion of the Merger; and (iii) the impact of certain fair value adjustments such as additional depreciation expense for adjustments to property and equipment and reduction to interest expense for adjustments to debt.  The pro forma results do not include any potential synergies, non-recurring charges resulting directly from the Merger, cost savings or other expected benefits of the Merger.  Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the Merger and related borrowings had occurred on January 1, 2010, nor are they indicative of future results.
(In millions, except per share amounts) 
Year Ended
 
December 31,
 
2011*

 
2010

Revenues
$
3,451.8

 
$
3,157.2

Net income
604.8

 
805.9

Earnings per share - basic
2.61

 
3.50

Earnings per share - diluted
2.60

 
3.49


* Supplemental pro forma earnings were adjusted to exclude an aggregate $157.6 million of merger-related costs incurred by Ensco and Pride during 2011.
Fair Value Measurements
Fair Value Measurements
FAIR VALUE MEASUREMENTS

    The following fair value hierarchy table categorizes information regarding our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 (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, 2012
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
29.8

 
$
—

 
$
—

 
$
29.8

Derivatives, net
—

 
5.2

 
—

 
5.2

Total financial assets
$
29.8

 
$
5.2

 
$
—

 
$
35.0

As of December 31, 2011
 

 
 

 
 

 
 

Hercules Offshore, Inc. common stock
$
32.2

 
$
—

 
$
—

 
$
32.2

Supplemental executive retirement plan assets
25.6

 
—

 
—

 
$
25.6

Total financial assets
$
57.8

 
$
—

 
$
—

 
$
57.8

Derivatives, net
$
—

 
$
7.1

 
$
—

 
$
7.1

Total financial liabilities
$
—

 
$
7.1

 
$
—

 
$
7.1





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, 2012 and 2011.  The fair value measurements of assets held in the SERP were based on quoted market prices. Net unrealized gains of $2.8 million and net unrealized losses of $300,000 from marketable securities held in our SERP were included in other, net, in our consolidated statement of income for the years ended December 31, 2012 and 2011, respectively.

Hercules Offshore, Inc. Common Stock
 
In December 2011, we received 10.3 million shares of Hercules Offshore, Inc. ("HERO") common stock in connection with the resolution of certain litigation in respect of the previously reported Seahawk Drilling, Inc. bankruptcy claims. We subsequently sold 3.0 million shares for $13.4 million of net proceeds in December 2011 and sold the remaining 7.3 million shares for $31.6 million of net proceeds in January 2012.

During 2012, in connection with the bankruptcy, we received an additional 1.4 million shares of HERO common stock, which we sold for $6.1 million during the same period. As of December 31, 2012, we did not hold any HERO common stock.

Our investments in HERO common stock were measured at fair value on a recurring basis using Level 1 inputs and were included in other current assets on our consolidated balance sheet as of December 31, 2011.  The fair value measurement of HERO common stock was based on quoted market prices of identical assets.  Net unrealized losses of $400,000 were included in other, net, in our consolidated statement of income for the year ended December 31, 2011.  We designated our investments in HERO common stock as trading securities as it was our intent to sell them in the near-term.  
 
Derivatives

Our derivatives were measured at fair value on a recurring basis using Level 2 inputs as of December 31, 2012 and 2011.  See "Note 6 - 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 generally are 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, 2012 and 2011 were as follows (in millions):
 
 
December 31, 2012
 
December 31, 2011
 
 
Carrying
Value
 
Estimated
  Fair
Value
 
Carrying
Value
 
Estimated
  Fair
Value
 
 
 
 
 
 
 
 
 
4.70% Senior notes due 2021
 
$
1,474.7

 
$
1,715.6

 
$
1,472.2

 
$
1,565.8

6.875% Senior notes due 2020
 
1,040.6

 
1,138.3

 
1,055.8

 
1,042.7

3.25% Senior notes due 2016
 
995.1

 
1,068.9

 
993.5

 
1,016.5

8.50% Senior notes due 2019
 
616.4

 
661.7

 
631.7

 
615.3

7.875% Senior notes due 2040
 
383.8

 
423.9

 
385.0

 
381.9

7.20% Debentures due 2027
 
149.0

 
193.2

 
149.0

 
167.2

4.33% MARAD bonds, including current maturities, due 2016
 
112.3

 
121.6

 
146.7

 
156.4

6.36% MARAD bonds, including current maturities, due 2015
 
38.0

 
48.7

 
50.7

 
64.0

4.65% MARAD bonds, including current maturities, due 2020
 
36.0

 
43.9

 
40.5

 
49.6

Total 
 
$
4,845.9

 
$
5,415.8

 
$
4,925.1

 
$
5,059.4


 
The estimated fair values of our senior notes and debentures were determined using quoted market prices. The estimated fair values of our MARAD bonds were determined using an income approach valuation model. 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, 2012 and 2011.
Property And Equipment
Property And Equipment
PROPERTY AND EQUIPMENT

Property and equipment as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Drilling rigs and equipment
 
$
13,499.4

 
$
12,672.6

Other
 
89.1

 
92.7

Work in progress
 
2,148.6

 
1,718.1

 
 
$
15,737.1

 
$
14,483.4


 
Drilling rigs and equipment increased $826.8 million during 2012 primarily due to ENSCO 8505, which was placed into service during 2012, and capital upgrades to the existing rig fleet.
 
Work in progress increased $430.5 million during 2012 primarily related to the construction of ENSCO 8506, ENSCO DS-6, ENSCO DS-7, ENSCO DS-8 and ENSCO DS-9, partially offset by ENSCO 8505, which was placed into service during 2012. Work in progress as of December 31, 2012 primarily consisted of $1.1 billion related to the construction of  ENSCO DS-6, ENSCO DS-7, ENSCO DS-8 and ENSCO DS-9 ultra-deepwater drillships, $603.9 million related to the construction of ENSCO 8506 ultra-deepwater semisubmersible rig, $157.4 million related to the construction of three ultra-high specification harsh environment jackup rigs and costs associated with various modification and enhancement projects.

Work in progress as of December 31, 2011 primarily consisted of $803.4 million related to the construction of ENSCO 8505 and ENSCO 8506 ultra-deepwater semisubmersible rigs, $487.8 million related to the construction of ENSCO DS-6 and ENSCO DS-7 ultra-deepwater drillships, which were acquired in connection with the Merger, $142.7 million related to the construction of three ultra-high specification harsh environment jackup rigs and costs associated with various modification and enhancement projects.
Debt
Debt
DEBT

The carrying value of long-term debt as of December 31, 2012 and 2011 consisted of the following (in millions):

 
 
2012
 
2011
4.70% Senior notes due 2021
 
$
1,474.7

 
$
1,472.2

6.875% Senior notes due 2020
 
1,040.6

 
1,055.8

3.25% Senior notes due 2016
 
995.1

 
993.5

8.50% Senior notes due 2019
 
616.4

 
631.7

7.875% Senior notes due 2040
 
383.8

 
385.0

7.20% Debentures due 2027
 
149.0

 
149.0

4.33% MARAD bonds due 2016
 
112.3

 
146.7

6.36% MARAD bonds due 2015
 
38.0

 
50.7

4.65% MARAD bonds due 2020
 
36.0

 
40.5

Commercial paper
 
—

 
125.0

Total debt
 
4,845.9

 
5,050.1

Less current maturities
 
(47.5
)
 
(172.5
)
Total long-term debt
 
$
4,798.4

 
$
4,877.6



   Senior Notes
 
On March 17, 2011, we issued $1.0 billion aggregate principal amount of unsecured 3.25% senior notes due 2016 at a discount of $7.6 million and $1.5 billion aggregate principal amount of unsecured 4.70% senior notes due 2021 at a discount of $29.6 million (collectively the "Notes") in a public offering. Interest on the Notes is payable semiannually in March and September of each year.  The Notes were issued pursuant to an indenture between us and Deutsche Bank Trust Company Americas, as trustee (the "Trustee"), dated March 17, 2011 (the "Indenture"), and a supplemental indenture between us and the Trustee, dated March 17, 2011 (the "Supplemental Indenture"). The proceeds from the sale of the Notes were used to fund a portion of the cash consideration payable in connection with the Merger.

Upon consummation of the Merger, we assumed the acquired company's outstanding debt comprised of $900.0 million aggregate principal amount of 6.875% senior notes due 2020, $500.0 million aggregate principal amount of 8.5% senior notes due 2019 and $300.0 million aggregate principal amount of 7.875% senior notes due 2040 (the "Acquired Notes"). Under a supplemental indenture, Ensco plc has fully and unconditionally guaranteed the performance of all obligations of Pride with respect to the Acquired Notes.  See "Note 15 - Guarantee of Registered Securities" for additional information on the guarantee of the Acquired Notes. 
   
We may redeem each series of the Senior Notes, in whole or in part, at any time, at a price equal to 100% of their principal amount, plus accrued and unpaid interest and a "make-whole" premium. The Notes and Acquired Notes, the indenture and the supplemental indenture also contain customary events of default, including failure to pay principal or interest on the Notes when due, among others. The supplemental indenture contains certain restrictions, including, among others, restrictions on our ability and the ability of our subsidiaries to create or incur secured indebtedness, enter into certain sale/leaseback transactions and enter into certain merger or consolidation transactions.

Debentures Due 2027

During 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. We may redeem the Debentures, in whole or in part, at any time prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest 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. During 2009, in connection with the redomestication, Ensco plc entered into a supplemental indenture to unconditionally guarantee the principal and interest payments on the Debentures.

The Debentures, the indenture and the supplemental indenture also contain customary events of default, including failure to pay principal or interest on the Debentures when due, among others. The supplemental indenture contains certain restrictions, including, among others, restrictions on our ability and the ability of our subsidiaries to create or incur secured indebtedness, enter into certain sale/leaseback transactions and enter into certain merger or consolidation transactions.

MARAD Bonds Due 2015, 2016 and 2020

During 2001, a subsidiary of Ensco Delaware issued $190.0 million of 15-year bonds which are guaranteed by the U.S. Maritime Administration ("MARAD") 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%.

During 2003, a subsidiary of Ensco Delaware issued $76.5 million of 17-year bonds which are guaranteed by MARAD 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%.

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 of Ensco Delaware and its subsidiaries.

Upon consummation of the Merger, we assumed $151.5 million of MARAD bonds issued to provide long-term financing for ENSCO 6003 and ENSCO 6004. The bonds are guaranteed by MARAD and will be repaid in semiannual principal installments ending in 2016. Interest on the bonds is payable semiannually at a weighted average fixed rate of 4.33%.
 
Five-Year Credit Facility
 
On May 12, 2011, we entered into an amended and restated agreement (the "Five-Year Credit Facility") with a syndicate of banks that provided for a $700.0 million unsecured revolving credit facility for general corporate purposes.  The Five-Year Credit Facility had an original term of five years, expiring in May 2016, and replaced our $700.0 million four-year credit agreement, which was scheduled to mature in May 2014. On May 31, 2011, upon the consummation of the Merger, and pursuant to the terms of the Five-Year Credit Facility, the commitment under the Five-Year Credit Facility increased from $700.0 million to $1.45 billion. In addition, certain of Ensco’s subsidiaries became borrowers and/or guarantors of the Five-Year Credit Facility. On May 2, 2012, we entered into an amendment to the Five-Year Credit Facility, dated as of May 12, 2011, among Ensco, certain subsidiaries of Ensco, Citibank, N.A., as Administrative Agent, Deutsche Bank Securities, Inc. as Syndication Agent, and a syndicate of banks party thereto. As amended, certain covenants relating to the requirement to provide additional guarantors and borrowers were revised to exclude intercompany indebtedness, among other clarifying changes. Except as amended, all other terms of the Five-Year Credit Facility, including its term, remained unchanged. Advances under the Five-Year Credit Facility bear interest at LIBOR plus an applicable margin rate (currently 1.5% per annum), depending on our credit rating. We are required to pay a quarterly undrawn facility fee (currently 0.20% per annum) on the total $1.45 billion commitment, which is also based on our credit rating. We also are required to maintain a total debt to total capitalization ratio less than or equal to 50% under the Five-Year Credit Facility. We have the right, subject to lender consent, to increase the commitments under the Five-Year Credit Facility to an aggregate amount of up to $1.7 billion.  We had no amounts outstanding under the Five-Year Credit Facility as of December 31, 2012 and December 31, 2011, respectively.

364-Day Credit Facility
 
On May 12, 2011, we entered into a 364-Day Credit Agreement (the "364-Day Credit Facility") with a syndicate of banks. The 364-Day Credit Facility provided for a $450.0 million unsecured revolving credit facility to be used for general corporate purposes, which would not be available for borrowing until certain conditions at the closing of the Merger were satisfied.  On May 31, 2011, upon the consummation of the Merger, the full commitment of $450.0 million under the 364-Day Credit Facility became available for Ensco to use for general corporate purposes. In addition, certain of Ensco’s subsidiaries became borrowers and/or guarantors of the 364-Day Credit Facility. On May 2, 2012, we entered into an amendment to the 364-Day Credit Agreement, dated as of May 12, 2011, among Ensco, certain subsidiaries of Ensco, Citibank, N.A., as Administrative Agent, Deutsche Bank Securities, Inc. as Syndication Agent, and a syndicate of banks party thereto. As amended, effective as of May 10, 2012, the term of the 364-Day Facility was extended until May 9, 2013 and certain covenants relating to the requirements to provide additional guarantors and borrowers were revised to exclude intercompany indebtedness, among other clarifying changes. Except as amended, all other covenants of the 364-Day Credit Facility remained unchanged. The 364-Day Credit Facility, as amended, has a one-year term, expiring in May 2013, or the date of the termination of the lender commitments as set forth in the 364-Day Credit Facility.  Upon our election prior to maturity, amounts outstanding under the 364-Day Credit Facility may be converted into a term loan with a maturity date of May 9, 2014 after payment of a fee equal to 1% of the amounts converted. Advances under the 364-Day Credit Facility bear interest at LIBOR plus an applicable margin rate (currently 1.13% per annum) depending on our credit rating. We are required to pay a quarterly undrawn facility fee (currently 0.09% per annum) on the total $450.0 million commitment. We also are required to maintain a total debt to total capitalization ratio less than or equal to 50% under the 364-Day Credit Facility. We have the right, subject to lender consent, to increase the commitments under the 364-Day Credit Facility to an aggregate amount of up to $550.0 million.  We had no amounts outstanding under the 364-Day Credit Facility as of December 31, 2012 and December 31, 2011, respectively.
 
    Commercial Paper
 
On April 26, 2011, we entered into a commercial paper program with four commercial paper dealers pursuant to which we may issue, on a private placement basis, unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $700.0 million.  On May 31, 2011, following the consummation of the Merger, Ensco increased the maximum aggregate amount of the commercial paper program to $1.0 billion. Under the commercial paper program, we may issue commercial paper from time to time, and the proceeds of such financings will be used for capital expenditures and other general corporate purposes.  The commercial paper will bear interest at rates that will vary based on market conditions and the ratings assigned by credit rating agencies at the time of issuance.  The weighted-average interest rate on our commercial paper borrowings was 0.44% and 0.40% during 2012 and 2011, respectively.  The maturities of the commercial paper will vary, but may not exceed 364 days from the date of issue. The commercial paper is not redeemable or subject to voluntary prepayment by us prior to maturity.  We had no amounts outstanding under our commercial paper program as of December 31, 2012, and we had $125.0 million outstanding as of December 31, 2011, which was classified as short-term debt on our consolidated balance sheet.

Maturities

The aggregate maturities of our debt, excluding net unamortized premiums of $315.7 million, as of December 31, 2012 were as follows (in millions):
 
2013
 
$
47.5

2014
 
47.5

2015
 
47.5

2016
 
1,019.7

2017
 
4.5

Thereafter
 
3,363.5

Total
 
$
4,530.2


    
Interest expense totaled $123.6 million and $95.9 million for the years ended December 31, 2012 and 2011, respectively, which was net of interest amounts capitalized of $105.8 million and $80.2 million in connection with our newbuild rig construction and other capital projects.  We incurred $21.3 million of interest expense during the year ended December 31, 2010, all of which was capitalized in connection with our newbuild rig construction and other capital projects.
Derivative Instruments
Derivative Instruments
DERIVATIVE INSTRUMENTS
   
We use derivatives to reduce our exposure to various market risks, primarily foreign currency exchange rate risk. We maintain a foreign currency exchange rate risk management strategy that utilizes derivatives to reduce our exposure to unanticipated fluctuations in earnings and cash flows caused by changes in foreign currency exchange rates. Although no interest rate related derivatives were outstanding as of December 31, 2012 and 2011, we may employ an interest rate risk management strategy that utilizes derivatives to mitigate or eliminate unanticipated fluctuations in earnings and cash flows arising from changes in, and volatility of, interest rates. We mitigate our credit risk relating to the counterparties of our derivatives by transacting with multiple, high-quality financial institutions, thereby limiting exposure to individual counterparties, and by monitoring the financial condition of our counterparties. We do not enter into derivatives for trading or other speculative purposes.
 
All derivatives were recorded on our consolidated balance sheets at fair value. Accounting for the gains and losses resulting from changes in the fair value of derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. See "Note 1 - Description of the Business and Summary of Significant Accounting Policies" for additional information on our accounting policy for derivatives and "Note 3 - Fair Value Measurements" for additional information on the fair value measurement of our derivatives.
 
As of December 31, 2012 and 2011, our consolidated balance sheets included a net foreign currency derivative asset of $5.2 million and a net foreign currency derivative liability of $7.1 million , respectively.  All of our derivatives mature during the next 18 months.  Derivatives recorded at fair value in our consolidated balance sheets as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
Derivative Assets
 
Derivative Liabilities
 
2012
 
2011
 
2012
 
2011
Derivatives Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
5.0

 
$
.2

 
$
.3

 
$
7.1

Foreign currency forward contracts - non-current(2)
.5

 
.1

 
—

 
.1

 
5.5

 
.3

 
.3

 
7.2

Derivatives not Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
.2

 
—

 
.2

 
.2

 
.2

 
—

 
.2

 
.2

Total
$
5.7

 
$
.3

 
$
.5

 
$
7.4


(1) 
Derivative assets and liabilities that have maturity dates equal to or less than 12 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 12 months from the respective balance sheet dates were included in other assets, net, and other liabilities, respectively, on our consolidated balance sheets.

We utilize cash flow hedges to hedge forecasted foreign currency denominated transactions, primarily to reduce our exposure to foreign currency exchange rate risk associated with contract drilling expenses and capital expenditures denominated in various currencies.  As of December 31, 2012, we had cash flow hedges outstanding to exchange an aggregate $330.5 million for various foreign currencies, including $144.6 million for British pounds, $99.9 million for Brazilian reais $28.3 million for Singapore dollars, $26.3 million for Australian dollars, $21.5 million for Euros and $9.9 million for other currencies.

Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012 were as follows (in millions):

Gain Recognized in
Other Comprehensive
Income ("OCI")
on Derivatives
  (Effective Portion)  
 
(Loss) Gain
Reclassified from
AOCI into Income
(Effective Portion)
 
(Loss) Gain Recognized
in Income on
Derivatives (Ineffective
Portion and Amount
Excluded from
Effectiveness Testing)(1)
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Interest rate lock contracts(2) 
$
—

 
$
—

 
$
—

 
$
(.5
)
 
$
(.5
)
 
$
(.6
)
 
$
—

 
$
—

 
$
—

Foreign currency forward contracts(3)
8.7

 
.1

 
7.6

 
.5

 
6.0

 
2.3

 
(.3
)
 
.3

 
.3

Total
$
8.7

 
$
.1

 
$
7.6

 
$
—

 
$
5.5

 
$
1.7

 
$
(.3
)
 
$
.3

 
$
.3

 
(1) 
Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our consolidated statements of income. 

(2) 
Gains and losses on derivatives reclassified from AOCI into income (effective portion) were included in interest expense 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 and depreciation expense in our consolidated statements of income.

We have net assets and liabilities denominated in numerous foreign currencies and use various methods to manage our exposure to foreign currency exchange rate risk. We predominantly structure our drilling contracts in U.S. dollars, which significantly reduces the portion of our cash flows and assets denominated in foreign currencies. We occasionally enter into derivatives that hedge the fair value of recognized foreign currency denominated assets or liabilities but do not designate such derivatives as hedging instruments. In these situations, a natural hedging relationship generally exists whereby changes in the fair value of the derivatives offset changes in the fair value of the underlying hedged items. As of December 31, 2012, we had derivatives not designated as hedging instruments outstanding to exchange an aggregate $102.4 million for various foreign currencies, including $22.6 million for British pounds, $15.9 million for Euros, $15.3 million for Swiss francs, $13.3 million for Australian dollars, $10.6 million for Indonesian Rupiah and $24.7 million for other currencies.

We realized gains of $1.5 million, $500,000 and $2.9 million associated with our derivatives not designated as hedging instruments that were included in other, net, in our consolidated statements of income for the years ended December 31, 2012, 2011 and 2010, respectively.

As of December 31, 2012, the estimated amount of net gains associated with derivatives, net of tax, that will be reclassified to earnings during the next 12 months was as follows (in millions):
Net unrealized gains to be reclassified to contract drilling expense
 
$
2.1

Net realized gains to be reclassified to depreciation expense
 
.6

Net realized (losses) to be reclassified to interest expense
 
(.4
)
Net gains to be reclassified to earnings
 
$
2.3

Shareholders' Equity
Shareholders' Equity
SHAREHOLDERS' EQUITY
 
Activity in our various shareholders' equity accounts for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 Shares 
 
 
Par Value 
 
 
Additional
Paid-in
Capital

 
Retained
Earnings

 
AOCI 
 
 
Treasury
Shares  

 
Noncontrolling
Interest

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

Net income
—

 
—

 
—

 
600.4

 
—

 
—

 
5.2

Cash dividends paid
—

 
—

 
—

 
(292.3
)
 
—

 
—

 
—

Distributions to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

 
(5.5
)
Shares issued under share-based compensation plans, net
—

 
—

 
39.7

 
—

 
—

 
.2

 
—

Shares issued in connection with the Merger
85.8

 
8.6

 
4,568.9

 
—

 
—

 
—

 
—

Fair value of share options assumed in connection with the Merger
—

 
—

 
35.4

 
—

 
—

 
—

 
—

Equity issuance costs
—

 
—

 
(70.5
)
 
—

 
—

 
—

 
—

Tax benefit from share-based compensation
—

 
—

 
.5

 
—

 
—

 
—

 
—

Repurchase of shares
—

 
—

 
—

 
—

 
—

 
(10.5
)
 
—

Share-based compensation cost
—

 
—

 
41.9

 
—

 
—

 
—

 
—

Net other comprehensive loss
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
—

BALANCE, December 31, 2011
235.9

 
23.7

 
5,253.0

 
5,613.1

 
8.6

 
(19.1
)
 
5.2

Net income
—

 
—

 
—

 
1,169.7

 
—

 
—

 
7.0

Cash dividends paid
—

 
—

 
—

 
(348.1
)
 
—

 
—

 
—

Distributions to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

 
(6.5
)
Shares issued in connection with share-based compensation plans, net
1.8

 
.2

 
35.3

 
—

 
—

 
(.1
)
 
—

Equity issuance cost refunds
—

 
—

 
66.7

 
—

 
—

 
—

 
—

Tax deficiency from share-based compensation
—

 
—

 
(1.0
)
 
—

 
—

 
—

 
—

Repurchase of shares
—

 
—

 
—

 
—

 
—

 
(11.8
)
 
—

Share-based compensation cost
—

 
—

 
44.7

 
—

 
—

 
—

 
—

Net other comprehensive income
—

 
—

 
—

 
—

 
11.5

 
—

 
—

BALANCE, December 31, 2012
237.7

 
$
23.9

 
$
5,398.7

 
$
6,434.7

 
$
20.1

 
$
(31.0
)
 
$
5.7



During 2009, the then-Board of Directors authorized the repurchase of up to $562.4 million of American depositary shares ("ADSs") pursuant to share repurchase agreements with two investment banks. No shares were repurchased under the share repurchase programs during the years ended December 31, 2011 and 2010. On May 22, 2012, we terminated our ADS facility and converted our outstanding ADSs into Class A ordinary shares on a one-for-one basis. Our Class A ordinary shares trade on the NYSE under the same symbol “ESV.” 

The conversion was executed in response to favorable regulatory developments involving shares of certain companies domiciled in the U.K. and allows shareholders to directly own and trade our Class A ordinary shares on the NYSE, which is a requirement to be eligible for the S&P 500 Index. After the close of trading on July 30, 2012, we were readmitted to the S&P 500 index. The conversion did not significantly impact our shareholder rights or our share capital.
In connection with the termination of the ADS facility and the conversion to Class A ordinary shares, our previously executed share repurchase agreements with two investment banks became of no effect by their own terms. Accordingly, our share repurchase program, which provided for the repurchase from time to time, of Ensco’s ADSs in an aggregate amount of up to $562.4 million, ended. The establishment of a new share repurchase program would require approval from our shareholders by special resolution.
Benefit Plans
Benefit Plans
BENEFIT PLANS
 
In May 2012, our shareholders approved the 2012 Long-Term Incentive Plan (the “2012 LTIP”) effective January 1, 2012, to provide for the issuance of non-vested share awards, share option awards and performance awards (collectively "awards"). The 2012 LTIP is similar to and replaces the Company's previously adopted 2005 Long-Term Incentive Plan (the "2005 LTIP"). No further awards will be granted under the 2005 LTIP. Under the 2012 LTIP, 14.0 million shares were reserved for issuance as awards to officers, non-employee directors and key employees who are in a position to contribute materially to our growth, development and long-term success. As of December 31, 2012, there were 11.7 million shares available for issuance as awards under the 2012 LTIP. Awards may be satisfied by newly issued shares, including shares held by a subsidiary or affiliated entity, or by delivery of shares held in the employee benefit trust at the Company's discretion.

Non-Vested Share Awards
 
Consistent with the 2005 LTIP, grants of non-vested share awards under the 2012 LTIP generally vest at rates of 20% or 33% per year, as determined by a committee or subcommittee of the Board of Directors at the time of grant. Prior to the adoption of the 2005 LTIP, non-vested share awards were issued under a predecessor plan and generally vested at a rate of 10% per year. The majority of non-vested share awards have voting and dividend rights effective on the date of grant. Compensation expense is measured using the market value of our shares on the date of grant and is recognized on a straight-line basis over the requisite service period (usually the vesting period).

The following table summarizes non-vested share award related compensation expense recognized during each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Contract drilling
$
17.1

 
$
17.0

 
$
17.2

General and administrative
24.8

 
21.5

 
13.9

Non-vested share award related compensation expense included in operating expenses
41.9

 
38.5

 
31.1

Tax benefit
(7.0
)
 
(6.9
)
 
(6.3
)
Total non-vested share award related compensation expense included in net income
$
34.9

 
$
31.6

 
$
24.8



The following table summarizes the value of non-vested share awards granted and vested during each of the years in the three-year period ended December 31, 2012:

 
2012
 
2011
 
2010
Weighted-average grant-date fair value of
 

 
 

 
 

non-vested share awards granted (per share)
$
48.32

 
$
52.50

 
$
35.81

Total fair value of non-vested share awards
 

 
 

 
 

vested during the period (in millions)
$
42.5

 
$
41.0

 
$
22.1


    
The following table summarizes non-vested share award activity for the year ended December 31, 2012 (shares in thousands): 
 
Shares
 
Weighted-Average
Grant-Date
Fair Value
 
 
 
 
Non-vested as of December 31, 2011
2,376

 
$
46.69

Granted
1,204

 
48.32

Vested
(829
)
 
51.10

Forfeited
(260
)
 
48.66

Non-vested as of December 31, 2012
2,491

 
$
46.52



As of December 31, 2012, there was $95.2 million of total unrecognized compensation cost related to non-vested share awards, which is expected to be recognized over a weighted-average period of 3.3 years.

Share Option Awards

Under the 2012 LTIP, share option awards ("options") may be issued to our officers, non-employee directors and key employees who are in a position to contribute materially to our growth, development and long-term success. Options granted to officers and employees generally become exercisable in 25% increments over a four-year period or 33% increments over a three-year period and, to the extent not exercised, expire on the seventh anniversary of the date of grant. Options granted to non-employee directors are immediately exercisable and, to the extent not exercised, expire on the seventh anniversary of the date of grant. The exercise price of options granted under the 2012 LTIP equals the market value of the underlying shares on the date of grant. As of December 31, 2012, options granted under predecessor or acquired plans to purchase 1.3 million shares were outstanding under the 2012 LTIP.

The following table summarizes option related compensation expense recognized during each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Contract drilling
$
—

 
$
—

 
$
.7

General and administrative
1.6

 
2.5

 
2.8

Option related compensation expense included in operating expenses
1.6

 
2.5

 
3.5

Tax benefit
(.3
)
 
(.5
)
 
(.6
)
Total option related compensation expense included in net income
$
1.3

 
$
2.0

 
$
2.9


    
The fair value of each option is estimated on the date of grant using the Black-Scholes option valuation model.  We did not grant share option awards during the year ended December 31, 2012. The following weighted-average assumptions were utilized in the Black-Scholes model for options granted during the years ended December 31, 2011 and 2010:
 
 
2011
 
2010
Risk-free interest rate
 
1.4
%
 
1.8
%
Expected term (in years)
 
3.7

 
4.0

Expected volatility
 
50.2
%
 
53.1
%
Dividend yield
 
2.6
%
 
4.1
%


Expected volatility is based on the historical volatility in the market price of our shares over the period of time equivalent to the expected term of the options granted. The expected term of options granted is derived from historical exercise patterns over a period of time equivalent to the contractual term of the options granted. We have not experienced significant differences in the historical exercise patterns among officers, employees and non-employee directors for them to be considered separately for valuation purposes. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon issues on the date of grant with a remaining term approximating the expected term of the options granted.
 
The following table summarizes option activity for the year ended December 31, 2012 (shares and intrinsic value in thousands, term in years):
 
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Contractual
Term
 
Intrinsic
Value
 
 
 
 
 
 
 
 
Outstanding as of December 31, 2011
2,289

 
$
42.78

 
 

 
 

Granted
—

 
—

 
 

 
 

Exercised
(939
)
 
38.00

 
 

 
 

Forfeited
—

 
—

 
 

 
 

Expired
(4
)
 
52.61

 
 

 
 

Outstanding as of December 31, 2012
1,346

 
$
46.05

 
3.2

 
$
18,240

Exercisable as of December 31, 2012
1,241

 
$
45.93

 
3.0

 
$
17,005



The following table summarizes the value of options granted and exercised during each of the years in the three-year period ended December 31, 2012:

 
2012
 
2011
 
2010
Weighted-average grant-date fair value of
options granted (per share)
$
—

 
$
19.05

 
$
11.05

Intrinsic value of options exercised during
the year (in millions)
$
17.8

 
$
17.2

 
$
.4


   
The following table summarizes information about options outstanding as of December 31, 2012 (shares in thousands):

 
Options Outstanding

 
Options Exercisable

 
 
Number     
 
Weighted-Average
Remaining
 
Weighted-Average
 
Number
 
Weighted-Average
Exercise Prices

 
Outstanding
 
Contractual Life
 
Exercise Price  
 
Exercisable
 
Exercise Price
$18.87  - $40.99
 
387
 
4.6 years
 
$32.90
 
349
 
$32.73
41.18  -   50.09
 
368
 
3.6 years
 
43.08
 
368
 
43.08
50.28  -   55.34
 
295
 
2.5 years
 
52.27
 
228
 
51.52
57.38  -   60.74
 
296
 
1.4 years
 
60.71
 
296
 
60.71
 
 
1,346
 
3.2 years
 
$46.05
 
1,241
 
$45.93


As of December 31, 2012, there was $1.1 million of total unrecognized compensation cost related to options, which is expected to be recognized over a weighted-average period of 1.1 years.

Performance Awards

Under the 2012 LTIP, performance awards may be issued to our senior executive officers. Performance awards are payable in Ensco shares, cash or a combination thereof upon attainment of specified performance goals based on relative total shareholder return and absolute and relative return on capital employed. The performance goals are determined by a committee or subcommittee of the Board of Directors.

Performance awards generally vest at the end of a three-year measurement period based on attainment of performance goals. Our performance awards are classified as liability awards with compensation expense measured based on the estimated probability of attainment of the specified performance goals and recognized on a straight-line basis over the requisite service period. The estimated probable outcome of attainment of the specified performance goals is based on historical experience, and any subsequent changes in this estimate are recognized as a cumulative adjustment to compensation cost in the period in which the change in estimate occurs. The aggregate grant-date fair value of performance awards granted during 2012, 2011 and 2010 totaled $7.2 million, $3.1 million and $4.3 million, respectively.  The aggregate fair value of performance awards vested during 2012, 2011 and 2010 totaled $5.3 million, $5.6 million and $2.4 million, respectively, all of which was paid in cash.

During the years ended December 31, 2012, 2011 and 2010, we recognized $9.7 million, $6.7 million and $9.9 million of compensation expense for performance awards, respectively, which was included in general and administrative expense in our consolidated statements of income.  As of December 31, 2012, there was $10.3 million of total unrecognized compensation cost related to unvested performance awards, which is expected to be recognized over a weighted-average period of 1.9 years.

Savings Plans

We have profit sharing plans (the "Ensco Savings Plan" and the "Ensco Multinational Savings Plan"), which cover eligible employees, as defined within each plan.  The Ensco Savings Plan includes a 401(k) savings plan feature which allows eligible employees to make tax deferred contributions to the plan.  Contributions made to the Ensco Multinational Savings Plan may or may not qualify for tax deferral based on each plan participant's local tax requirements.
 
We generally make matching cash contributions to the plans.  We match 100% of the amount contributed by the employee up to a maximum of 5% of eligible salary. Matching contributions totaled $14.9 million, $11.6 million and $5.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.  Profit sharing contributions made into the plans require approval of the Board of Directors and are generally paid in cash.  We recorded profit sharing contribution provisions of $40.9 million, $18.1 million and $16.2 million for the years ended December 31, 2012, 2011 and 2010, respectively.  Matching contributions and profit sharing contributions become vested in 33% increments upon completion of each initial year of service with all contributions becoming fully vested subsequent to achievement of three or more years of service.  We have 1.0 million shares reserved for issuance as matching contributions under the Ensco Savings Plan.
Goodwill and Other Intangible Assets and Liabilities
Goodwill and Other Intangible Assets and Liabilities
GOODWILL AND OTHER INTANGIBLE ASSETS AND LIABILITIES

Goodwill

The carrying amount of goodwill as of December 31, 2012 is detailed below by reporting unit (in millions):
Floaters

$3,081.4

Jackups
192.6

Total

$3,274.0


    
Other Intangible Assets and Liabilities
In connection with the Merger, we recorded intangible assets and liabilities representing the estimated fair values of the acquired company's firm drilling contracts in place at the Merger Date with favorable or unfavorable contract terms as compared to then-current market day rates for comparable drilling rigs. The gross carrying amounts of our drilling contract intangibles, which we consider to be definite-lived intangibles assets and intangible liabilities, and accumulated amortization as of December 31, 2012 and 2011 were as follows (in millions):
 
 
December 31, 2012
 
December 31, 2011
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Drilling contract intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
209.0

 
$
(36.4
)
 
$
172.6

 
$
209.0

 
$
—

 
$
209.0

Amortization
 
—

 
(51.9
)
 
(51.9
)
 
—

 
(36.4
)
 
(36.4
)
Balance, end of period
 
$
209.0

 
$
(88.3
)
 
$
120.7

 
$
209.0

 
$
(36.4
)
 
$
172.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Drilling contract intangible liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
278.0

 
$
(92.8
)
 
$
185.2

 
$
278.0

 
$
—

 
$
278.0

Amortization
 
—

 
(67.2
)
 
(67.2
)
 
—

 
(92.8
)
 
(92.8
)
Balance, end of period
 
$
278.0

 
$
(160.0
)
 
$
118.0

 
$
278.0

 
$
(92.8
)
 
$
185.2



The various factors considered in the determination of the fair values of our drilling contract intangibles were (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the Merger Date.  The intangible assets and liabilities were calculated based on the present value of the difference in cash inflows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated then-current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate.  

We amortize the drilling contract intangibles to operating revenues over the respective remaining drilling contract terms on a straight-line basis. The estimated future amortization income (expense) related to these intangible assets and liabilities as of December 31, 2012, was as follows (in millions):
2013
 
$
6.6

2014
 
(4.3
)
2015
 
(4.5
)
2016
 
(0.8
)
2017
 
.3

Thereafter
 
—

Total
 
$
(2.7
)
Income Taxes
Income Taxes
INCOME TAXES

We generated income of $109.3 million, loss of $28.3 million and income of $90.5 million from continuing operations before income taxes in the U.S. and $1.4 billion, $751.5 million and $563.6 million of income from continuing operations before income taxes in non-U.S. countries for the years ended December 31, 2012, 2011 and 2010, respectively.

The following table summarizes components of the provision for income taxes from continuing operations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Current income tax expense:
 

 
 

 
 

U.S.
$
42.8

 
$
40.7

 
$
9.5

Non-U.S.
183.6

 
94.2

 
71.0

 
226.4

 
134.9

 
80.5

Deferred income tax expense (benefit):
 

 
 

 
 

U.S.
32.0

 
(14.8
)
 
15.2

Non-U.S.
(14.0
)
 
(4.7
)
 
1.5

 
18.0

 
(19.5
)
 
16.7

Total income tax expense
$
244.4

 
$
115.4

 
$
97.2


    
Deferred Taxes

The following table summarizes significant components of deferred income tax assets (liabilities) as of December 31, 2012 and 2011 (in millions):


 
2012
 
2011
Deferred tax assets:
 


 
 

Foreign tax credits
 
$
173.4

 
$
92.6

Premium on long-term debt
 
124.0

 
135.7

Net operating loss carryforwards
 
87.8

 
193.1

Employee benefits, including share-based compensation
 
33.4

 
33.3

Deferred revenue
 
22.7

 
32.0

Other
 
24.5

 
29.1

Total deferred tax assets
 
465.8

 
515.8

Valuation allowance
 
(227.1
)
 
(224.7
)
Net deferred tax assets
 
238.7

 
291.1

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(472.9
)
 
(493.6
)
Intercompany transfers of property
 
(32.2
)
 
(38.8
)
Deferred costs
 
(20.9
)
 
(36.6
)
Other
 
(31.3
)
 
(25.2
)
Total deferred tax liabilities
 
(557.3
)
 
(594.2
)
Net deferred tax liability
 
$
(318.6
)
 
$
(303.1
)
Net current deferred tax asset
 
$
13.8

 
$
10.4

Net noncurrent deferred tax liability
 
(332.4
)
 
(313.5
)
Net deferred tax liability
 
$
(318.6
)
 
$
(303.1
)

 
The realization of substantially all of our deferred tax assets is dependent on generating sufficient taxable income during future periods in various jurisdictions in which we operate.  Realization of certain of our deferred tax assets is not assured. We recognize a valuation allowance for deferred tax assets when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized.  The amount of deferred tax assets considered realizable could increase or decrease in the near-term if estimates of future taxable income change.

As of December 31, 2012, we had deferred tax assets of $173.4 million for U.S. foreign tax credits (“FTC”) and $87.8 million related to $322.9 million of net operating loss (“NOL”) carryforwards, which can be used to reduce our income taxes payable in future years.  The FTC expire between 2017 and 2022.  NOL carryforwards, which were generated in various jurisdictions worldwide, include $194.5 million of NOLs that do not expire and $128.4 million that will expire, if not utilized, beginning in 2013 through 2031.  Due to the uncertainty of realization, we have a $222.9 million valuation allowance on NOL carryforwards and FTC, primarily relating to countries where we no longer operate or do not expect to generate future taxable income.
 
Effective Tax Rate

     Ensco plc, our parent company, is domiciled and resident in the U.K. Our subsidiaries conduct operations and earn income in numerous countries and are subject to the laws of taxing jurisdictions within those countries. The income of our non-U.K. subsidiaries is not subject to U.K. taxation. As a result of frequent changes in the taxing jurisdictions in which our drilling rigs are operated and/or owned, changes in the overall level of our income and changes in tax laws, our consolidated effective income tax rate may vary substantially from one reporting period to another. Our consolidated effective income tax rate on continuing operations for each of the years in the three-year period ended December 31, 2012, differs from the U.K. statutory income tax rate as follows:

 
2012
 
2011
 
2010
U.K. statutory income tax rate
24.5
 %
 
26.5
 %
 
28.0
 %
Non-U.K. taxes
(15.5
)
 
(19.6
)
 
(18.9
)
Amortization of net deferred charges
   associated with intercompany rig sales
.6

 
1.0

 
2.6

Income taxes associated with restructuring transactions
3.5

 
—

 
—

Valuation allowance
2.6

 
6.8

 
1.6

Net expense (benefit) associated with uncertain tax positions and other adjustments relating to prior years
1.0

 
.8

 
(.5
)
Other
—

 
.4

 
2.1

Effective income tax rate
16.7
 %
 
15.9
 %
 
14.9
 %


In December 2012, we completed the restructuring of certain subsidiaries of the acquired company and recognized $51.2 million of income tax expense in connection therewith.

Our consolidated effective income tax rate for 2012 includes the impact of various discrete tax items, the majority of which is attributable to income tax expense associated with certain restructuring transactions in December 2012 and net income tax expense associated with liabilities for unrecognized tax benefits and other adjustments relating to prior years. Our consolidated effective income tax rate for 2011 includes the impact of various discrete tax items, the majority of which is attributable to the recognition of a liability for unrecognized tax benefits associated with a tax position taken in a prior year. Excluding the impact of the aforementioned discrete items, our consolidated effective income tax rate for the years ended December 31, 2012 and 2011 was 12.2% and 15.1%, respectively. The decrease in our consolidated effective income tax rate, excluding discrete tax items, was due to unrecognized benefits related to net operating losses and foreign tax credits of certain acquired subsidiaries in 2011 and changes in taxing jurisdictions in which our drilling rigs are operated and/or owned that resulted in an increase in the relative components of our earnings generated in tax jurisdictions with lower tax rates.

The increase in our 2011 consolidated effective income tax rate, excluding discrete tax items, to 15.1% from 14.9% in 2010 was primarily due to unrecognized benefits related to net operating losses and foreign tax credits of certain acquired subsidiaries during 2011, partially offset by the transfer of ownership of several of our drilling rigs among our subsidiaries in 2010 and other changes in taxing jurisdictions in which our drilling rigs are operated and/or owned that resulted in an increase in the relative components of our earnings generated in tax jurisdictions with lower tax rates.

Unrecognized Tax Benefits

Our tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information.  As of December 31, 2012, we had $110.7 million of unrecognized tax benefits which was included in other liabilities on our consolidated balance sheets, of which $107.0 million would impact our consolidated effective income tax rate if recognized.  A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2012 and 2011 is as follows (in millions):

 
 
2012
 
2011
Balance, beginning of year
 
$
53.6

 
$
13.7

Unrecognized tax benefits assumed in the Merger
 
—

 
34.8

   Increases in unrecognized tax benefits as a result
      of tax positions taken during the current year
 
60.7

 
1.9

   Increases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
21.3

 
6.1

   Decreases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
(.4
)
 
—

Settlements with taxing authorities
 
(4.1
)
 
—

Lapse of applicable statutes of limitations
 
(20.8
)
 
(2.0
)
Impact of foreign currency exchange rates
 
.4

 
(.9
)
Balance, end of year
 
$
110.7

 
$
53.6


   
Accrued interest and penalties totaled $18.9 million and $22.7 million as of December 31, 2012 and 2011, respectively, and were included in other liabilities on our consolidated balance sheets. We recognized a net benefit of $2.8 million, net benefit of $400,000 and net expense of $1.5 million associated with interest and penalties during the years ended December 31, 2012, 2011 and 2010, respectively. Interest and penalties are included in current income tax expense in our consolidated statements of income.
 
Tax years as early as 2003 remain subject to examination in the major tax jurisdictions in which we operated.  Ensco Delaware and Ensco United Incorporated, an indirect wholly-owned subsidiary of Ensco, participate in the U.S. Internal Revenue Service’s Compliance Assurance Process (“IRS CAP”) which, among other things, provides for the resolution of tax issues in a timely manner and generally eliminates the need for lengthy post-filing examinations.  The 2010 and 2011 U.S federal tax returns of Ensco Delaware remain subject to examination under the IRS CAP.

Statutes of limitations applicable to certain of our tax positions lapsed during 2012, 2011 and 2010, resulting in net income tax benefits, inclusive of interest and penalties, of $28.6 million, $4.2 million and $2.5 million, respectively.
  
Statutes of limitations applicable to certain of our tax positions will lapse during 2013.  Therefore, it is reasonably possible that our unrecognized tax benefits will decline during the next 12 months by $4.2 million, inclusive of $2.5 million of accrued interest and penalties, of which $3.8 million would impact our consolidated effective income tax rate if recognized.

Intercompany Transfer of Drilling Rigs
 
Subsequent to the Merger, we transferred ownership of several acquired drilling rigs among our subsidiaries, including five drillships in June 2011 and one jackup rig in 2012.  The income tax liability associated with gains on the intercompany transfers of drilling rigs totaled $3.3 million and $10.3 million in 2012 and 2011, respectively. The related income tax expense was deferred and is being amortized on a straight-line basis over the remaining useful lives of the associated rigs, which range from 15 to 35 years for the rigs transferred in 2012 and 2011. Similarly, the tax effects of $29.6 million of reversing temporary differences of the selling subsidiaries in 2011, also were deferred and are being amortized on the same basis and over the same periods as described above.

Following our redomestication to the U.K. in December 2009, we reorganized our worldwide operations, which included the transfer of ownership of several of our drilling rigs among our subsidiaries during 2010.  The drilling rigs transferred during 2010 were either transferred among subsidiaries that are not subject to income tax or transferred among subsidiaries that were resident in the same tax jurisdiction and included in a consolidated tax return.  Accordingly, the selling subsidiaries incurred no income tax liability or benefit on gains and losses, and no reversing temporary differences arose, in connection with the transfer of drilling rigs during 2010.

As of December 31, 2012 and 2011, the unamortized balance associated with deferred charges for income taxes incurred in connection with intercompany transfers of drilling rigs totaled $58.3 million and $68.8 million, respectively, and was included in other assets, net, on our consolidated balance sheets. Current income tax expense for the years ended December 31, 2012, 2011 and 2010 included $13.4 million, $14.0 million and $23.2 million, respectively, of amortization of income taxes incurred in connection with intercompany transfers of drilling rigs.
 
As of December 31, 2012 and 2011, the deferred tax liability associated with temporary differences of transferred drilling rigs totaled $32.2 million and $38.8 million, respectively, and was included in deferred income taxes on our consolidated balance sheet.  Deferred income tax expense for the years ended December 31, 2012, 2011 and 2010 included benefits of $4.4 million, $4.6 million and $6.1 million, respectively, of amortization of deferred reversing temporary differences associated with intercompany transfers of drilling rigs.
 
Undistributed Earnings
    
Dividend income received by Ensco plc from its subsidiaries is exempt from U.K. taxation. We do not provide deferred taxes on undistributed earnings of certain subsidiaries because our policy and intention is to reinvest such earnings indefinitely. Each of the subsidiaries for which we maintain such policy has significant net assets, liquidity, contract backlog and/or other financial resources available to meet operational and capital investment requirements and otherwise allow us to continue to maintain our policy of reinvesting the undistributed earnings indefinitely.

In December 2012, a U.S. subsidiary received $530.0 million in earnings distributions from two non-U.S. subsidiaries. There was no net U.S. tax liability on the earnings repatriation, as we utilized net operating loss carryforwards to offset the previously untaxed portion of the earnings distribution. The earnings distribution was made in consideration of unique circumstances and our U.S. subsidiaries continue to have significant net assets, liquidity, contract backlog and other financial resources available to meet operational and capital investment requirements. Accordingly, this distribution does not change, and we continue to maintain, our policy and intention to reinvest the undistributed earnings of the two aforementioned subsidiaries indefinitely.

As of December 31, 2012, the aggregate undistributed earnings of the subsidiaries for which we maintain a policy and intention to reinvest earnings indefinitely totaled $2.1 billion. Should we make a distribution from these subsidiaries in the form of dividends or otherwise, we would be subject to additional income taxes. The unrecognized deferred tax liability related to these undistributed earnings was not practicable to estimate as of December 31, 2012.
Discontinued Operations
Discontinued Operations
DISCONTINUED OPERATIONS
We sold the following rigs during the three-year period ended December 31, 2012 (in millions):
Rig
 
Date of Rig Sale
 
Segment(1)
 
Net Proceeds
 
Net Book Value(2)
 
Pre-tax Gain/(Loss)(3)
ENSCO 5003
 
December 2012
 
Floaters
 
$
68.2

 
$
89.4

 
$
(21.2
)
Pride Hawaii
 
October 2012
 
Jackups
 
18.8

 
16.8

 
2.0

ENSCO I
 
September 2012
 
Other
 
4.5

 
12.3

 
(7.8
)
ENSCO 61
 
June 2012
 
Jackups
 
31.7

 
19.6

 
12.1

ENSCO 59
 
May 2012
 
Jackups
 
22.8

 
21.9

 
.9

ENSCO 95
 
June 2011
 
Jackups
 
41.5

 
28.8

 
12.7

ENSCO 60
 
November 2010
 
Jackups
 
25.7

 
20.0

 
5.7

ENSCO 57
 
April 2010
 
Jackups
 
47.1

 
29.2

 
17.9

ENSCO 50 & ENSCO 51
 
March 2010
 
Jackups
 
94.7

 
60.8

 
33.9

 
 
 
 
 
 
$
355.0

 
$
298.8

 
$
56.2

(1) The rigs' operating results were reclassified to discontinued operations in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012 and previously were included within the operating segment noted in the above table.
(2) Includes the rig's net book value as well as inventory and other assets on the date of the sale.
(3) The pre-tax gain/(loss) was included in (loss)/gain on disposal of discontinued operations, net in our consolidated statement of income in the year of sale.
During 2012, we classified our jackup rig Pride Pennsylvania as held for sale. The rig's aggregate net book value totaled $14.2 million, which was included in prepaid expenses and other on our consolidated balance sheet at December 31, 2012. We have received a nonrefundable deposit related to the potential sale of the asset and associated inventory. The sale is expected to be completed within one year. The rig was written down to fair value less estimated cost to sell, resulting in a pre-tax impairment charge of approximately $500,000, which was included in loss from discontinued operations, net, in our consolidated statement of income for the year ended December 31, 2012. Furthermore, the rig's operating results were reclassified to discontinued operations and included in loss from discontinued operations, net in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012. The rig's operating results were previously included within our Jackups segment results.

The following table summarizes income from discontinued operations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
 
2012
 
2011
 
2010

Revenues
 
$
6.7

 
$
45.0

 
$
35.1

Operating expenses
 
44.3

 
44.4

 
49.3

Operating (loss) income before income taxes
 
(37.6
)
 
.6

 
(14.2
)
Other income (expense)
 
1.3

 
.2

 
—

Income tax benefit (expense)
 
7.3

 
(4.8
)
 
4.6

(Loss) gain on disposal of discontinued operations, net
 
(16.5
)
 
1.8

 
38.6

(Loss) income from discontinued operations
 
$
(45.5
)
 
$
(2.2
)
 
$
29.0



Debt and interest expense are not allocated to our discontinued operations.
Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES

Leases

We are obligated under leases for certain of our offices and equipment.  Rental expense relating to operating leases was $47.5 million, $31.5 million and $15.9 million during the years ended December 31, 2012, 2011 and 2010, respectively. Future minimum rental payments under our noncancellable operating lease obligations are as follows:  $31.5 million during 2013; $19.3 million during 2014; $9.7 million during 2015; $6.1 million during 2016, $6.1 million during 2017 and $43.5 million thereafter.

Capital Commitments

The following table summarizes the aggregate contractual commitments related to our three ultra-deepwater drillships and our three ultra-high specification harsh environment jackup rigs under construction as of December 31, 2012 (in millions): 
2013
 
$
924.2

2014
 
942.1

Total
 
$
1,866.3


 
The actual timing of these expenditures may vary based on the completion of various construction milestones, which are, to a large extent, beyond our control.
 
Warranty and Other Claims

We enter into agreements with third parties from time-to-time, which may provide us with various forms of compensation to settle warranty or other claims related to lost revenues and/or costs incurred as a result of equipment ineffectiveness and other operational matters. Settlements related to these matters in the aggregate of $63.3 million were recognized during the year ended December 31, 2012 and included as a reduction to contract drilling expense in our consolidated statement of income.

ENSCO 74 Loss

During 2008, our jackup rig ENSCO 74 was lost as a result of Hurricane Ike in the U.S. Gulf of Mexico.  Portions of its legs remained underwater adjacent to the customer's platform, and the sunken rig hull of ENSCO 74 was located approximately 95 miles from the original drilling location when it was struck by an oil tanker during 2009.  Wreck removal operations on the sunken rig hull of ENSCO 74 were completed during 2010.
 
In April 2012, we entered into an agreement with the customer pursuant to which, among other matters, the customer agreed to remove the legs, and we agreed to pay $19.0 million in nine installments upon the completion of certain milestones during the removal. The actual removal costs incurred by the customer may be less than or greater than the aggregate $19.0 million we agreed to pay the customer. This will not result in any reduction in the $19.0 million amount paid or in any additional payments due to the customer from us. We have insurance coverage for the actual removal costs incurred by the customer. During 2012, we paid $10.0 million to the customer upon completion of certain milestones and received $5.8 million in insurance reimbursements. A $9.0 million liability for remaining installments due to the customer and a $13.2 million receivable for recovery of related costs under our insurance policy was recorded as of December 31, 2012 and included in accrued liabilities and other and other assets, net, respectively, on our consolidated balance sheet.

               We filed a petition for exoneration or limitation of liability under U.S. admiralty and maritime law during 2009. A number of claimants presented claims in the exoneration/limitation proceedings. Currently, only three claims remain.  The owner of a pipeline filed claims alleging that ENSCO 74 caused a pipeline to rupture during Hurricane Ike and sought damages for the cost of repairs and business interruption in an amount in excess of $26.0 million. The owner of a second pipeline filed claims for damages that currently have not been quantified.  The owner of the oil tanker that struck the hull of ENSCO 74 filed claims seeking monetary damages currently in excess of $5.0 million for losses incurred when the tanker struck the sunken hull of ENSCO 74. The matter currently is scheduled for trial in September 2013. Based on information currently available, primarily the adequacy of available defenses, we have not concluded that it is probable liabilities exist with respect to these matters.
 
We have liability insurance policies that provide coverage for claims such as the tanker and pipeline claims as well as removal of wreckage and debris in excess of the property insurance policy sublimit, subject to a $10.0 million per occurrence self-insured retention for third-party claims and an annual aggregate limit of $500.0 million. We believe all liabilities associated with the ENSCO 74 loss during Hurricane Ike resulted from a single occurrence under the terms of the applicable insurance policies. However, legal counsel for certain liability underwriters have asserted that the liability claims arise from separate occurrences. In the event of multiple occurrences, the self-insured retention is $15.0 million for two occurrences and $1.0 million for each occurrence thereafter.

Although we do not expect final disposition of the claims associated with the ENSCO 74 loss to have a material adverse effect upon our financial position, operating results or cash flows, there can be no assurances as to the ultimate outcome.

Asbestos Litigation

We and certain subsidiaries have been named as defendants, along with numerous third-party companies as co-defendants, in multi-party lawsuits filed in Mississippi and Louisiana by approximately 100 plaintiffs. The lawsuits seek an unspecified amount of monetary damages on behalf of individuals alleging personal injury or death, primarily under the Jones Act, purportedly resulting from exposure to asbestos on drilling rigs and associated facilities during the 1960s through the 1980s.

We intend to vigorously defend against these claims and have filed responsive pleadings preserving all defenses and challenges to jurisdiction and venue. However, discovery is still ongoing and, therefore, available information regarding the nature of all pending claims is limited. At present, we cannot reasonably determine how many of the claimants may have valid claims under the Jones Act or estimate a range of potential liability exposure, if any.
 
In addition to the pending cases in Mississippi and Louisiana, we have other asbestos or lung injury claims pending against us in litigation in other jurisdictions. Although we do not expect the final disposition of these asbestos or lung injury lawsuits to have a material adverse effect upon our financial position, operating results or cash flows, there can be no assurances as to the ultimate outcome of the lawsuits.

    Environmental Matters

We currently are subject to pending notices of assessment issued from 2008 to 2012 pursuant to which governmental authorities in Brazil are seeking fines in an aggregate amount of approximately $2.0 million for the release of drilling fluid from drilling rigs operating offshore Brazil. We are contesting these notices and intend to vigorously defend ourselves.  Although we do not expect the outcome of these assessments to have a material adverse effect on our financial position, operating results or cash flows, there can be no assurance as to the ultimate outcome of these assessments.  A $2.0 million liability related to these matters was recorded as of December 31, 2012 and included in accrued liabilities and other on our consolidated balance sheet.
 
We currently are subject to a pending administrative proceeding initiated in July 2009 by a governmental authority of Spain pursuant to which such governmental authority is seeking payment in an aggregate amount of approximately $4.0 million for an alleged environmental spill originating from the ENSCO 5006 while it was operating offshore Spain. Our customer has posted guarantees with the Spanish government to cover potential penalties. Additionally, we expect to be indemnified for any payments resulting from this incident by our customer under the terms of the drilling contract. A criminal investigation of the incident was initiated in July 2010 by a prosecutor in Tarragona, Spain, and the administrative proceedings have been suspended pending the outcome of this investigation.  We do not know at this time what, if any, involvement we may have in this investigation.
 
We intend to vigorously defend ourselves in the administrative proceeding and any criminal investigation. At this time, we are unable to predict the outcome of these matters or estimate the extent to which we may be exposed to any resulting liability. Although we do not expect the outcome of the proceedings to have a material adverse effect on our financial position, operating results or cash flows, there can be no assurance as to the ultimate outcome of the proceedings.

Other Matters

In addition to the foregoing, we are named defendants or parties in certain other lawsuits, claims or proceedings incidental to our business and are involved from time to time as parties to governmental investigations or proceedings, including matters related to taxation, arising in the ordinary course of business. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, we do not expect these matters to have a material adverse effect on our financial position, operating results or cash flows.
Segment Information
Segment Information
SEGMENT INFORMATION

Management of our business is a dynamic and constantly evolving process. This was especially true during 2011 and 2012 as we completed the Merger and executed integration activities. During the fourth quarter, the CODM evaluated the manner in which our business was being managed and concluded that distinctions in water depth capabilities for our floating rigs were no longer a significant factor in the performance assessment and resource allocation decision making process. The CODM requested that financial information previously disaggregated between floating rigs capable of drilling in 4,500 feet and greater (Deepwater) and floating rigs capable of drilling in 4,499 feet or less (Midwater) be combined into a single floaters category for internal financial reporting purposes effective for the fourth quarter of 2012. We now consider our drillship and semisubmersible rig fleet to be one operating segment.

Our business now consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which currently consists of management services on rigs owned by third-parties. Our two reportable segments, Floaters and Jackups, provide one service, contract drilling.
Segment information for each of the years in the three-year period ended December 31, 2012 is presented below (in millions). General and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income and were included in "Reconciling Items."  We measure segment assets as property and equipment. Prior year information has been reclassified to conform to the current year presentation.

Year Ended December 31, 2012
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
2,707.8

 
$
1,510.1

 
$
82.8

 
$
4,300.7

 
$
—

 
$
4,300.7

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
1,225.1

 
741.8

 
61.1

 
2,028.0

 
—

 
2,028.0

Depreciation
382.3

 
167.4

 
—

 
549.7

 
8.9

 
558.6

General and administrative
—

 
—

 
—

 
—

 
148.9

 
148.9

Operating income (loss)
$
1,100.4

 
$
600.9

 
$
21.7

 
$
1,723.0

 
$
(157.8
)
 
$
1,565.2

Property and equipment, net
$
10,727.6

 
$
2,389.8

 
$
—

 
$
13,117.4

 
$
28.2

 
$
13,145.6

Capital expenditures
$
1,575.5

 
$
224.0

 
$
—

 
$
1,799.5

 
$
2.7

 
$
1,802.2



Year Ended December 31, 2011
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,532.8

 
$
1,212.5

 
$
52.4

 
$
2,797.7

 
$
—

 
$
2,797.7

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
785.1

 
621.1

 
42.9

 
1,449.1

 
—

 
1,449.1

Depreciation
235.9

 
168.6

 
—

 
404.5

 
4.4

 
408.9

General and administrative
—

 
—

 
—

 
—

 
158.6

 
158.6

Operating income (loss)
$
511.8

 
$
422.8

 
$
9.5

 
$
944.1

 
$
(163.0
)
 
$
781.1

Property and equipment, net
$
9,923.6

 
$
2,462.4

 
$
12.8

 
$
12,398.8

 
$
23.1

 
$
12,421.9

Capital expenditures
$
436.7

 
$
278.3

 
$
—

 
$
715.0

 
$
14.0

 
$
729.0


Year Ended December 31, 2010
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
475.2

 
$
1,199.0

 
$
—

 
$
1,674.2

 
$
—

 
$
1,674.2

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
176.1

 
565.7

 
—

 
741.8

 
—

 
741.8

Depreciation
44.8

 
164.3

 
—

 
209.1

 
1.3

 
210.4

General and administrative
—

 
—

 
—

 
—

 
86.1

 
86.1

Operating income (loss)
$
254.3

 
$
469.0

 
$
—

 
$
723.3

 
$
(87.4
)
 
$
635.9

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

 
Information about Geographic Areas
 
As of December 31, 2012, our Floaters segment consisted of six drillships, 13 dynamically positioned semisubmersible rigs and six moored semisubmersible rigs deployed in various locations throughout Asia Pacific, Europe and Mediterranean, Brazil, Middle East and Africa and North and South America. Additionally, our Floaters segment consisted of three ultra-deepwater drillships under construction in South Korea.  Our Jackups segment consisted of 46 jackup rigs, of which 43 are deployed in various locations throughout Asia Pacific, Europe and Mediterranean, Middle East and Africa and North and South America, and three currently are under construction in Singapore as part of our ongoing strategy to continually expand and high-grade our fleet.  
 
As of December 31, 2012, the geographic distribution of our drilling rigs by operating segment was as follows:
 
Floaters

 
Jackups

 
Total *

North & South America (excluding Brazil)
8
 
14
 
22
Brazil
10
 
—
 
10
Europe & Mediterranean
1
 
8
 
9
Middle East & Africa
4
 
10
 
14
Asia & Pacific Rim
2
 
11
 
13
Asia & Pacific Rim (under construction)
3
 
3
 
6
Total
28
 
46
 
74
 
*We provide management services on three rigs owned by third-parties not included in the table above. 

For purposes of our geographic disclosure, we attribute revenues to the geographic location where such revenues are earned and assets to the geographic location of the drilling rig as of the end of the applicable year. For new construction projects, assets are attributed to the location of future operation if known or to the location of construction if the ultimate location of operation is undetermined. Information by country for those countries that account for more than 10% of total revenues or 10% of our long-lived assets was as follows (in millions):
 
Revenues
 
Long-lived Assets
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
United States
$
1,291.3

 
$
753.8

 
$
421.3

 
$
4,525.9

 
$
3,450.6

 
$
1,993.3

Brazil
1,093.2

 
575.6

 
—

 
2,911.3

 
3,101.8

 
—

Angola
431.7

 
243.7

 
—

 
2,147.2

 
1,347.9

 
—

United Kingdom
314.1

 
240.4

 
219.0

 
436.8

 
398.9

 
429.2

Australia
136.4

 
61.2

 
225.3

 
345.1

 
350.6

 
194.9

Mexico
124.6

 
148.3

 
179.8

 
189.1

 
206.3

 
259.3

Singapore
—

 
—

 
—

 
367.4

 
1,082.3

 
1,235.6

Other countries
909.4

 
774.7

 
628.8

 
2,222.8

 
2,483.5

 
937.6

Total
$
4,300.7

 
$
2,797.7

 
$
1,674.2

 
$
13,145.6

 
$
12,421.9

 
$
5,049.9

Supplemental Financial Information
Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION

Consolidated Balance Sheet Information

Accounts receivable, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Trade
 
$
812.4

 
$
818.2

Other
 
18.2

 
48.6

 
 
830.6

 
866.8

Allowance for doubtful accounts
 
(19.2
)
 
(15.1
)
 
 
$
811.4

 
$
851.7



Other current assets as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Inventory
 
$
207.8

 
$
201.4

Prepaid taxes
 
62.2

 
64.9

Short-term investments
 
50.0

 
4.5

Deferred mobilization costs
 
33.7

 
43.8

Prepaid expenses
 
20.3

 
22.3

Deferred tax assets
 
14.6

 
9.8

Assets held for sale
 
14.2

 
—

Marketable securities
 
—

 
32.2

Other
 
22.6

 
20.0

 
 
$
425.4

 
$
398.9


    
    Other assets, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Intangible assets
 
$
143.3

 
$
197.3

Unbilled receivables
 
77.1

 
119.4

Prepaid taxes on intercompany transfers of property
 
58.3

 
68.8

Warranty and other claim receivables
 
30.6

 
—

Supplemental executive retirement plan assets
 
29.8

 
25.6

Deferred mobilization costs
 
20.8

 
38.4

Deferred tax assets
 
19.3

 
25.9

Wreckage and debris removal receivables
 
13.2

 
19.8

Other
 
29.4

 
26.4

 
 
$
421.8

 
$
521.6



      Accrued liabilities and other as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Personnel costs
 
$
231.1

 
$
159.9

Deferred revenue
 
146.2

 
111.3

Taxes
 
86.9

 
74.0

Accrued interest
 
67.9

 
69.4

Wreckage and debris removal
 
9.0

 
16.0

Intangible liabilities
 
—

 
43.4

Other
 
43.3

 
41.7

 
 
$
584.4

 
$
515.7



Other liabilities as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Deferred revenue
 
$
224.5

 
$
124.4

Intangible liabilities
 
118.0

 
177.8

Unrecognized tax benefits (inclusive of interest and penalties)

 
129.6

 
75.5

Supplemental executive retirement plan liabilities
 
33.3

 
30.1

Other
 
68.0

 
56.8

 
 
$
573.4

 
$
464.6


 
Consolidated Statement of Income Information

Repair and maintenance expense related to continuing operations for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Repair and maintenance expense
 
$
344.9

 
$
263.7

 
$
117.8



Consolidated Statement of Cash Flows Information
 
Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Interest, net of amounts capitalized
 
$
150.7

 
$
28.6

 
$
—

Income taxes
 
103.5

 
123.9

 
171.6



Capitalized interest totaled $105.8 million, $80.2 million and $21.3 million during the years ended December 31, 2012, 2011 and 2010, respectively. Capital expenditure accruals totaling $112.5 million, $305.8 million and $39.7 million for the years ended December 31, 2012, 2011 and 2010, respectively, were excluded from investing activities in our consolidated statements of cash flows. 

Amortization of intangibles and other, net, included amortization of intangible assets and liabilities related to the estimated fair values of acquired Company firm drilling contracts in place at the Merger Date, deferred charges for income taxes incurred on intercompany transfers of drilling rigs and certain other deferred costs.

Concentration of Credit Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents and investments and our use of derivatives in connection with the management of foreign currency exchange rate risk. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which to date have been within management's expectations. We mitigate our credit risk relating to cash and investments by focusing on diversification and quality of instruments. Cash balances are maintained in major, well-capitalized commercial banks. Cash equivalents and short-term investments consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents and short-term investments is maintained at several major financial institutions, and we monitor the financial condition of those financial institutions.  

We mitigate our credit risk relating to counterparties of our derivatives through a variety of techniques, including transacting with multiple, high quality financial institutions, thereby limiting our exposure to individual counterparties and generally by entering into International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements, which include provisions for a legally enforceable master netting agreement with almost all of our derivative counterparties. The terms of the ISDA agreements may also include credit support requirements, cross default provisions, termination events, or set-off provisions, in addition to a master netting agreement.  Legally enforceable master netting agreements reduce credit risk by providing protection in bankruptcy in certain circumstances and generally permitting the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. 

During the year ended December 31, 2012, one customer provided a total of $1.0 billion, or 24%, of consolidated revenues, which were attributable to our Floaters segment.  During the year ended December 31, 2011, one customer provided a total of $456.6 million, or 16%, of consolidated revenues, which were attributable to our Floaters segment. During the year ended December 31, 2010, two customers provided a total of $421.4 million, or 25%, of consolidated revenues which were attributable to our Floaters and Jackups segments. 
During the year ended December 31, 2012, revenues provided by our drilling operations in the U. S. Gulf of Mexico totaled $1.3 billion, or 30%, of consolidated revenues, of which 73% were attributable to our Floaters segment. Revenues provided by our drilling operations in Brazil during the year ended December 31, 2012 totaled $1.1 billion, or 25%, of consolidated revenues, which were attributable to our Floaters segment. During the year ended December 31, 2012, revenues provided by our drilling operations in Angola totaled $431.7 million, or 10%, of consolidated revenues, of which 95% were attributable to our Floaters segment.
Guarantee Of Registered Securities
Guarantee Of Registered Securities
GUARANTEE OF REGISTERED SECURITIES
 
In connection with the Merger, 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% senior notes due 2019, 6.875% senior notes due 2020 and 7.875% senior notes due 2040, which had an aggregate outstanding principal balance as of $1.7 billion as of December 31, 2012. 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 Delaware in November 1997, which had an aggregate outstanding principal balance of $150.0 million as of December 31, 2012.
 
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 our condensed consolidating statements of income for each of the years in the three-year period ended December 31, 2012; our condensed consolidating statements of comprehensive income for each of the years in the three-year period ended December 31, 2012; our condensed consolidating balance sheets as of December 31, 2012 and 2011; and our condensed consolidating statements of cash flows for each of the years in the three-year period ended December 31, 2012, in accordance with Rule 3-10 of Regulation S-X. 
 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
 Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco  
 
 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
44.0

 
$
147.6

 
$
—

 
$
4,429.2

 
$
(320.1
)
 
$
4,300.7

OPERATING EXPENSES


 


 


 


 


 


Contract drilling (exclusive of depreciation)
51.2

 
147.6

 
—

 
2,149.3

 
(320.1
)
 
2,028.0

Depreciation
.4

 
3.5

 
—

 
554.7

 
—

 
558.6

General and administrative
63.8

 
.4

 
—

 
84.7

 
—

 
148.9

OPERATING (LOSS) INCOME
(71.4
)
 
(3.9
)
 
—

 
1,640.5

 
—

 
1,565.2

OTHER (EXPENSE) INCOME, NET
(41.8
)
 
(7.0
)
 
(50.0
)
 
.2

 
—

 
(98.6
)
(LOSS) INCOME BEFORE INCOME TAXES
(113.2
)
 
(10.9
)
 
(50.0
)
 
1,640.7

 
—

 
1,466.6

INCOME TAX PROVISION
—

 
68.8

 
—

 
175.6

 
—

 
244.4

DISCONTINUED OPERATIONS, NET
—

 
—

 
—

 
(45.5
)
 
—

 
(45.5
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
1,282.9

 
335.9

 
239.2

 
—

 
(1,858.0
)
 
—

NET INCOME
1,169.7

 
256.2

 
189.2

 
1,419.6

 
(1,858.0
)
 
1,176.7

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(7.0
)
 
—

 
(7.0
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
1,169.7

 
$
256.2

 
$
189.2

 
$
1,412.6

 
$
(1,858.0
)
 
$
1,169.7


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
 Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco  
 
 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
—

 
$
70.0

 
$
—

 
$
2,869.5

 
$
(141.8
)
 
$
2,797.7

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
46.9

 
70.0

 
—

 
1,474.0

 
(141.8
)
 
1,449.1

Depreciation
.4

 
1.8

 
—

 
406.7

 
—

 
408.9

General and administrative
52.2

 
—

 
—

 
106.4

 
—

 
158.6

OPERATING (LOSS) INCOME
(99.5
)
 
(1.8
)
 
—

 
882.4

 
—

 
781.1

OTHER INCOME (EXPENSE), NET
32.1

 
.4

 
(22.7
)
 
(67.7
)
 
—

 
(57.9
)
(LOSS) INCOME BEFORE INCOME TAXES
(67.4
)
 
(1.4
)
 
(22.7
)
 
814.7

 
—

 
723.2

INCOME TAX PROVISION
—

 
38.5

 
1.5

 
75.4

 
—

 
115.4

DISCONTINUED OPERATIONS, NET


 
(11.1
)
 


 
8.9

 


 
(2.2
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
667.8

 
271.5

 
143.9

 
—

 
(1,083.2
)
 
—

NET INCOME
600.4

 
220.5

 
119.7

 
748.2

 
(1,083.2
)
 
605.6

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
—

 
—

 
—

 
(5.2
)
 
—

 
(5.2
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
220.5

 
$
119.7

 
$
743.0

 
$
(1,083.2
)
 
$
600.4


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2010
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
—

 
$
53.4

 
$
1,725.9

 
$
(105.1
)
 
$
1,674.2

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

  Contract drilling (exclusive of depreciation)
29.0

 
53.4

 
764.5

 
(105.1
)
 
741.8

Depreciation
.2

 
1.0

 
209.2

 
—

 
210.4

General and administrative
55.1

 
—

 
31.0

 
—

 
86.1

OPERATING (LOSS) INCOME
(84.3
)
 
(1.0
)
 
721.2

 
—

 
635.9

OTHER INCOME (EXPENSE), NET
55.6

 
3.8

 
(41.2
)
 
—

 
18.2

(LOSS) INCOME BEFORE INCOME TAXES
(28.7
)
 
2.8

 
680.0

 
—

 
654.1

INCOME TAX PROVISION
1.3

 
43.4

 
52.5

 
—

 
97.2

DISCONTINUED OPERATIONS, NET
—

 
(16.7
)
 
45.7

 


 
29.0

EQUITY EARNINGS IN AFFILIATES,
NET OF TAX
609.5

 
137.7

 
—

 
(747.2
)
 
—

NET INCOME
579.5

 
80.4

 
673.2

 
(747.2
)
 
585.9

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
—

 
—

 
(6.4
)
 
—

 
(6.4
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
579.5

 
$
80.4

 
$
666.8

 
$
(747.2
)
 
$
579.5






ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2012
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
1,169.7

 
$
256.2

 
$
189.2

 
$
1,419.6

 
$
(1,858.0
)
 
$
1,176.7

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
4.0

 
—

 
4.7

 
—

 
8.7

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
—

 
(.2
)
 
—

 
—

Other
—

 
—

 
—

 
2.8

 
—

 
2.8

NET OTHER COMPREHENSIVE INCOME
—

 
4.2

 
—

 
7.3

 
—

 
11.5

 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,169.7

 
260.4

 
189.2

 
1,426.9

 
(1,858.0
)
 
1,188.2

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(7.0
)
 
—

 
(7.0
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
1,169.7

 
$
260.4

 
$
189.2

 
$
1,419.9

 
$
(1,858.0
)
 
$
1,181.2



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2011
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
600.4

 
$
220.5

 
$
119.7

 
$
748.2

 
$
(1,083.2
)
 
$
605.6

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
(7.5
)
 
—

 
7.6

 
—

 
.1

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
—

 
(5.7
)
 
—

 
(5.5
)
Other
—

 
—

 
—

 
2.9

 
—

 
2.9

NET OTHER COMPREHENSIVE (LOSS) INCOME
—

 
(7.3
)
 
—

 
4.8

 
—

 
(2.5
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
600.4

 
213.2

 
119.7

 
753.0

 
(1,083.2
)
 
603.1

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(5.2
)
 
—

 
(5.2
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
213.2

 
$
119.7

 
$
747.8

 
$
(1,083.2
)
 
$
597.9




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2010
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
579.5

 
$
80.4

 
$
673.2

 
$
(747.2
)
 
$
585.9

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
1.2

 
6.4

 
—

 
7.6

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
(1.9
)
 
—

 
(1.7
)
Other
—

 
—

 
—

 
—

 
—

NET OTHER COMPREHENSIVE (LOSS) INCOME
—

 
1.4

 
4.5

 
—

 
5.9

 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
579.5

 
81.8

 
677.7

 
(747.2
)
 
591.8

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
(6.4
)
 
—

 
(6.4
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
579.5

 
$
81.8

 
$
671.3

 
$
(747.2
)
 
$
585.4



























ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
Pride
International, Inc. 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

                          ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
271.8

 
$
1.7

 
$
85.0

 
$
128.6

 
$
—

 
$
487.1

Accounts receivable, net 
—

 
.2

 
—

 
811.2

 
—

 
811.4

Accounts receivable from
  affiliates
1,294.5

 
226.5

 
—

 
2,375.1

 
(3,896.1
)
 
—

Other
2.8

 
24.9

 
—

 
397.7

 
—

 
425.4

 Total current assets
1,569.1

 
253.3

 
85.0

 
3,712.6

 
(3,896.1
)
 
1,723.9

PROPERTY AND EQUIPMENT,AT COST
2.1

 
30.2

 
—

 
15,704.8

 
—

 
15,737.1

Less accumulated depreciation
1.1

 
23.5

 
—

 
2,566.9

 
—

 
2,591.5

Property and equipment, net  
1.0

 
6.7

 
—

 
13,137.9

 
—

 
13,145.6

GOODWILL
—

 
—

 
—

 
3,274.0

 
—

 
3,274.0

DUE FROM AFFILIATES
3,483.5

 
3,594.7

 
1,628.4

 
4,748.9

 
(13,455.5
)
 
—

INVESTMENTS IN AFFILIATES
13,469.3

 
2,693.8

 
3,824.8

 
—

 
(19,987.9
)
 
—

OTHER ASSETS, NET 
11.3

 
67.4

 
—

 
343.1

 
—

 
421.8

 
$
18,534.2

 
$
6,615.9

 
$
5,538.2

 
$
25,216.5

 
$
(37,339.5
)
 
$
18,565.3

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
31.0

 
$
28.1

 
$
34.1

 
$
849.0

 
$
—

 
$
942.2

Accounts payable to affiliates
2,364.8

 
136.9

 
—

 
1,394.4

 
(3,896.1
)
 
—

Current maturities of long-term
  debt
—

 
—

 
—

 
47.5

 
—

 
47.5

Total current liabilities
2,395.8

 
165.0

 
34.1

 
2,290.9

 
(3,896.1
)
 
989.7

DUE TO AFFILIATES 
1,816.7

 
2,054.7

 
877.5

 
8,706.6

 
(13,455.5
)
 
—

LONG-TERM DEBT 
2,469.6

 
149.0

 
2,040.8

 
139.0

 
—

 
4,798.4

DEFERRED INCOME TAXES
—

 
335.1

 
—

 
16.6

 
—

 
351.7

OTHER LIABILITIES
—

 
—

 
10.8

 
562.6

 
—

 
573.4

ENSCO SHAREHOLDERS' EQUITY 
11,852.1

 
3,912.1

 
2,575.0

 
13,495.1

 
(19,987.9
)
 
11,846.4

NONCONTROLLING INTERESTS
—

 
—

 
—

 
5.7

 
—

 
5.7

Total equity
11,852.1

 
3,912.1

 
2,575.0

 
13,500.8

 
(19,987.9
)
 
11,852.1

      
$
18,534.2

 
$
6,615.9

 
$
5,538.2

 
$
25,216.5

 
$
(37,339.5
)
 
$
18,565.3

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
Pride
International, Inc. 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

                          ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
   Cash and cash equivalents
$
236.6

 
$
—

 
$
22.6

 
$
171.5

 
$
—

 
$
430.7

Accounts receivable, net 
—

 
.3

 
5.2

 
846.2

 
—

 
851.7

Accounts receivable from
  affiliates
1,268.4

 
89.8

 
278.2

 
1,194.5

 
(2,830.9
)
 
—

Other
2.8

 
35.2

 
46.2

 
314.7

 
—

 
398.9

 Total current assets
1,507.8

 
125.3

 
352.2

 
2,526.9

 
(2,830.9
)
 
1,681.3

PROPERTY AND EQUIPMENT,
AT COST
1.8

 
30.6

 
—

 
14,451.0

 
—

 
14,483.4

Less accumulated depreciation
.7

 
23.8

 
—

 
2,037.0

 
—

 
2,061.5

Property and equipment, net  
1.1

 
6.8

 
—

 
12,414.0

 
—

 
12,421.9

GOODWILL
—

 
—

 
—

 
3,274.0

 
—

 
3,274.0

DUE FROM AFFILIATES
2,002.3

 
2,486.9

 
313.5

 
3,638.7

 
(8,441.4
)
 
—

INVESTMENTS IN AFFILIATES
12,041.9

 
2,966.0

 
4,802.6

 
—

 
(19,810.5
)
 
—

OTHER ASSETS, NET 
13.9

 
83.4

 
9.8

 
414.5

 
—

 
521.6

 
$
15,567.0

 
$
5,668.4

 
$
5,478.1

 
$
22,268.1

 
$
(31,082.8
)
 
$
17,898.8

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
30.4

 
$
20.0

 
$
27.4

 
$
1,082.3

 
$
—

 
$
1,160.1

Accounts payable to affiliates
575.1

 
606.6

 
85.2

 
1,564.0

 
(2,830.9
)
 
—

Short-term debt 
125.0

 
—

 
—

 
—

 
—

 
125.0

Current maturities of long-term
  debt
—

 
—

 
—

 
47.5

 
—

 
47.5

Total current liabilities
730.5

 
626.6

 
112.6

 
2,693.8

 
(2,830.9
)
 
1,332.6

DUE TO AFFILIATES 
2,191.7

 
1,058.2

 
401.3

 
4,790.2

 
(8,441.4
)
 
—

LONG-TERM DEBT 
2,465.7

 
149.0

 
2,072.5

 
190.4

 
—

 
4,877.6

DEFERRED INCOME TAXES
—

 
326.8

 
—

 
12.7

 
—

 
339.5

OTHER LIABILITIES
—

 
5.2

 
18.7

 
440.7

 
—

 
464.6

ENSCO SHAREHOLDERS' EQUITY 
10,179.1

 
3,502.6

 
2,873.0

 
14,135.1

 
(19,810.5
)
 
10,879.3

NONCONTROLLING INTERESTS
—

 
—

 
—

 
5.2

 
—

 
5.2

Total equity
10,179.1

 
3,502.6

 
2,873.0

 
14,140.3

 
(19,810.5
)
 
10,884.5

      
$
15,567.0

 
$
5,668.4

 
$
5,478.1

 
$
22,268.1

 
$
(31,082.8
)
 
$
17,898.8



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporation  

 
Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Net cash (used in) provided by
     operating activities of continuing operations
$
(71.6
)
 
$
(38.2
)
 
$
(21.6
)
 
$
2,331.6

 
$
—

 
$
2,200.2

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment 
—

 
—

 
—

 
(1,802.2
)
 
—

 
(1,802.2
)
Other
(.3
)
 
.4

 
—

 
(42.4
)
 
—

 
(42.3
)
Net cash (used in) provided by investing activities of continuing operations 
(.3
)
 
.4

 
—

 
(1,844.6
)
 
—

 
(1,844.5
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Cash dividends paid
(348.1
)
 
—

 
—

 
—

 
—

 
(348.1
)
Reduction of long-term
  borrowings
—

 
—

 
—

 
(47.5
)
 
—

 
(47.5
)
Commercial paper borrowings,
   net
(125.0
)
 
—

 
—

 
—

 
—

 
(125.0
)
Equity issuance reimbursement
66.7

 
—

 
—

 
—

 
—

 
66.7

Proceeds from exercise of share
  options
23.9

 
11.9

 
—

 
—

 
—

 
35.8

Advances from (to) affiliates
501.2

 
27.6

 
84.0

 
(612.8
)
 
—

 
—

Other
(11.6
)
 
—

 
—

 
(5.8
)
 
—

 
(17.4
)
      Net cash provided by (used in)
         financing activities of
    continuing operations
107.1

 
39.5

 
84.0

 
(666.1
)
 
—

 
(435.5
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Operating activities
—

 
—

 
—

 
(13.1
)
 
—

 
(13.1
)
Investing activities
—

 
—

 
—

 
147.3

 
—

 
147.3

Net cash provided by discontinued operations
—

 
—

 
—

 
134.2

 
—

 
134.2

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
2.0

 
—

 
2.0

NET INCREASE IN CASH AND CASH EQUIVALENTS
35.2

 
1.7

 
62.4

 
(42.9
)
 
—

 
56.4

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
236.6

 
—

 
22.6

 
171.5

 
—

 
430.7

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
271.8

 
$
1.7

 
$
85.0

 
$
128.6

 
$
—

 
$
487.1





ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporation  

 
Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Net cash provided by (used in)
     operating activities of continuing operations
$
2.0

 
$
(2.6
)
 
$
(59.9
)
 
$
792.3

 
$
—

 
$
731.8

INVESTING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Acquisition of Pride International, Inc.,
       net of cash acquired 
—

 
—

 
92.9

 
(2,748.9
)
 
—

 
(2,656.0
)
Additions to property and
  equipment 
—

 
—

 
—

 
(729.0
)
 
—

 
(729.0
)
Other
—

 
(6.1
)
 
—

 
6.9

 
—

 
.8

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

 
(6.1
)
 
92.9

 
(3,471.0
)
 
—

 
(3,384.2
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Proceeds from issuance of senior
  notes
2,462.8

 
—

 
—

 
—

 
—

 
2,462.8

Cash dividends paid
(292.3
)
 
—

 
—

 
—

 
—

 
(292.3
)
Reduction of long-term
  borrowings
—

 
—

 
(181.0
)
 
(32.3
)
 
—

 
(213.3
)
Commercial paper borrowings,
  net
125.0

 
—

 
—

 
—

 
—

 
125.0

Equity issuance costs
(70.5
)
 
—

 
—

 
—

 
—

 
(70.5
)
Proceeds from exercise of share
  options
—

 
39.9

 


 


 


 
39.9

Debt financing costs
(27.1
)
 
(4.7
)
 
—

 
—

 
—

 
(31.8
)
Advances (to) from affiliates
(1,966.7
)
 
(34.5
)
 
170.6

 
1,830.6

 
—

 
—

Other
—

 
—

 
—

 
(15.7
)
 
—

 
(15.7
)
      Net cash provided by (used in)
         financing activities of
  continuing operations
231.2

 
.7

 
(10.4
)
 
1,782.6

 
—

 
2,004.1

DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Operating activities
—

 
(11.1
)
 
—

 
11.5

 
—

 
.4

Investing activities
—

 
—

 
—

 
28.7

 
—

 
28.7

Net cash provided by discontinued operations
—

 
(11.1
)
 
—

 
40.2

 
—

 
29.1

Effect of exchange rate changes
  on cash and cash equivalents
—

 
—

 
—

 
(.8
)
 
—

 
(.8
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
233.2

 
(19.1
)
 
22.6

 
(856.7
)
 
—

 
(620.0
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
3.4

 
19.1

 
—

 
1,028.2

 
—

 
1,050.7

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
236.6

 
$
—

 
$
22.6

 
$
171.5

 
$
—

 
$
430.7


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2010
(in millions)
 
Ensco plc

 
ENSCO International Incorporation

 
Other Non guarantor Subsidiaries of Ensco  
  
 
    Consolidating     Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

  Net cash (used in) provided by 
    operating activities of continuing
    operations
$
(6.8
)
 
$
(53.9
)
 
$
867.7

 
$
—

 
$
807.0

INVESTING ACTIVITIES
 

 
 

 
 

 
 

 
 

Additions to property and equipment 
—

 
—

 
(875.3
)
 
—

 
(875.3
)
Other
(1.8
)
 
—

 
3.3

 
—

 
1.5

Net cash used in investing activities of  continuing operations 
(1.8
)
 
—

 
(872.0
)
 
—

 
(873.8
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

Cash dividends paid 
(153.7
)
 
—

 
—

 
—

 
(153.7
)
Reduction of long-term borrowings
—

 
—

 
(17.2
)
 
—

 
(17.2
)
Proceeds from exercise of share options 
—

 
1.4

 
—

 
—

 
1.4

Debt financing costs
—

 
(6.2
)
 
—

 
—

 
(6.2
)
Advances from (to) affiliates
140.9

 
(183.3
)
 
42.4

 
—

 
—

Other
—

 
—

 
(16.9
)
 
—

 
(16.9
)
      Net cash (used in) provided by
        financing activities of continuing
        operations
(12.8
)
 
(188.1
)
 
8.3

 
—

 
(192.6
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
Operating activities
—

 
(16.7
)
 
27.8

 
—

 
11.1

Investing activities
—

 
—

 
158.1

 
—

 
158.1

Net cash (used in) provided by discontinued operations
—

 
(16.7
)
 
185.9

 
—

 
169.2

   Effect of exchange rate changes on cash and
       cash equivalents 
—

 
—

 
(.5
)
 
—

 
(.5
)
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS
(21.4
)
 
(258.7
)
 
189.4

 
—

 
(90.7
)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
24.8

 
277.8

 
838.8

 
—

 
1,141.4

CASH AND CASH EQUIVALENTS, END
OF PERIOD
$
3.4

 
$
19.1

 
$
1,028.2

 
$
—

 
$
1,050.7

Unaudited Quarterly Financial Data
Unaudited Quarterly Financial Data
UNAUDITED QUARTERLY FINANCIAL DATA

   The following table summarizes our unaudited quarterly consolidated income statement data for the years ended December 31, 2012 and 2011 (in millions, except per share amounts):

2012
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
1,020.6

 
$
1,071.1

 
$
1,123.5

 
$
1,085.5

 
$
4,300.7

Operating expenses


 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
502.2

 
494.0

 
507.3

 
524.5

 
2,028.0

Depreciation
136.0

 
136.3

 
142.4

 
143.9

 
558.6

General and administrative
38.2

 
35.5

 
40.2

 
35.0

 
148.9

Operating income
344.2

 
405.3

 
433.6

 
382.1

 
1,565.2

Other expense, net
(26.7
)
 
(24.7
)
 
(25.5
)
 
(21.7
)
 
(98.6
)
Income from continuing operations before income taxes
317.5

 
380.6

 
408.1

 
360.4

 
1,466.6

Provision for income taxes
37.0

 
43.4

 
46.9

 
117.1

 
244.4

Income from continuing operations
280.5

 
337.2

 
361.2

 
243.3

 
1,222.2

(Loss) income from discontinued operations, net
(13.1
)
 
5.5

 
(15.8
)
 
(22.1
)
 
(45.5
)
Net income
267.4

 
342.7

 
345.4

 
221.2

 
1,176.7

Net income attributable to noncontrolling interests
(2.0
)
 
(1.4
)
 
(1.9
)
 
(1.7
)
 
(7.0
)
Net income attributable to Ensco
$
265.4

 
$
341.3

 
$
343.5

 
$
219.5

 
$
1,169.7

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 
 

Continuing operations
$
1.21

 
$
1.45

 
$
1.55

 
$
1.04

 
$
5.24

Discontinued operations
(0.06
)
 
0.02

 
(0.07
)
 
(0.10
)
 
(0.19
)
 
$
1.15

 
$
1.47

 
$
1.48

 
$
0.94

 
$
5.05

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 
 

Continuing operations
$
1.20

 
$
1.45

 
$
1.55

 
$
1.04

 
$
5.23

Discontinued operations
(0.05
)
 
0.02

 
(0.07
)
 
(0.10
)
 
(0.19
)

$
1.15

 
$
1.47

 
$
1.48

 
$
0.94

 
$
5.04

2011
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
361.5

 
$
561.4

 
$
901.6

 
$
973.2

 
$
2,797.7

Operating expenses
 

 
 

 
 

 


 
 

Contract drilling (exclusive of depreciation)
190.8

 
295.0

 
465.0

 
498.3

 
1,449.1

Depreciation
58.2

 
81.4

 
132.8

 
136.5

 
408.9

General and administrative
30.1

 
47.4

 
40.8

 
40.3

 
158.6

Operating income
82.4

 
137.6

 
263.0

 
298.1

 
781.1

Other income (expense), net
2.3

 
(18.1
)
 
(13.6
)
 
(28.5
)
 
(57.9
)
Income from continuing operations before income taxes
84.7

 
119.5

 
249.4

 
269.6

 
723.2

Provision for income taxes
17.1

 
14.0

 
40.3

 
44.0

 
115.4

Income from continuing operations
67.6

 
105.5

 
209.1

 
225.6

 
607.8

(Loss) income from discontinued operations, net
(2.1
)
 
(1.9
)
 
(3.0
)
 
4.8

 
(2.2
)
Net income
65.5

 
103.6

 
206.1

 
230.4

 
605.6

Net income attributable to noncontrolling interests
(.9
)
 
(1.7
)
 
(1.6
)
 
(1.0
)
 
(5.2
)
Net income attributable to Ensco
$
64.6

 
$
101.9

 
$
204.5

 
$
229.4

 
$
600.4

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 
 

Continuing operations
$
0.46

 
$
0.60

 
$
0.90

 
$
0.97

 
$
3.10

Discontinued operations
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.02

 
(0.01
)
 
$
0.45

 
$
0.59

 
$
0.89

 
$
0.99

 
$
3.09

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 
 

Continuing operations
$
0.46

 
$
0.60

 
$
0.90

 
$
0.97

 
$
3.09

Discontinued operations
(0.01
)
 
(0.01
)
 
(0.02
)
 
0.02

 
(0.01
)
 
$
0.45

 
$
0.59

 
$
0.88

 
$
0.99

 
$
3.08

Description Of The Business And Summary Of Significant Accounting Policies (Policies)
Business 
Business
 
We are one of the leading providers of offshore contract drilling services to the international oil and gas industry. We own an offshore drilling rig fleet of 74 rigs, including rigs under construction, spanning most of the strategic, high-growth markets around the globe.  Our rig fleet includes nine drillships, 13 dynamically positioned semisubmersible rigs, six moored semisubmersible rigs and 46 jackup rigs.  Our fleet is the world's second largest amongst competitive rigs, our ultra-deepwater fleet is the newest in the industry and our premium jackup fleet is the largest of any offshore drilling company.  We currently have three technologically-advanced drillships and three ultra-premium harsh environment jackup rigs under construction as part of our ongoing strategy to continually expand and high-grade our fleet.

Our customers include most of the leading national and international oil companies, in addition to many independent operators. We are among the most geographically diverse offshore drilling companies, with current operations and drilling contracts spanning approximately 20 countries on six continents in nearly every major deepwater and shallow-water basin around the world. The regions in which we operate include major markets in Southeast Asia, Australia, the North Sea, Mediterranean, U.S. Gulf of Mexico, Mexico and the Middle East, as well as the fastest-growing deepwater markets in Brazil and West Africa, where some of the world's most prolific geology resides.

We provide drilling services on a "day rate" contract basis. Under day rate contracts, we provide a drilling rig and rig crews and receive a fixed amount per day for drilling a well. Our customers bear substantially all of the ancillary costs of constructing the well and supporting drilling operations, as well as the economic risk relative to the success of the well. In addition, our customers may pay all or a portion of the cost of moving our equipment and personnel to and from the well site. We do not provide "turnkey" or other risk-based drilling services.
Redomestication 
Redomestication

In December 2009, we completed a reorganization of the corporate structure of the group of companies controlled by our predecessor, ENSCO International Incorporated ("Ensco Delaware"), pursuant to which an indirect, wholly-owned subsidiary merged with Ensco Delaware, and Ensco plc became our publicly-held parent company incorporated under English law (the "redomestication").
 
The redomestication was accounted for as an internal reorganization of entities under common control and, therefore, Ensco Delaware's assets and liabilities were accounted for at their historical cost basis and not revalued in the transaction. We remain subject to the U.S. Securities and Exchange Commission (the "SEC") reporting requirements, the mandates of the Sarbanes-Oxley Act of 2002, as amended, and the applicable corporate governance rules of the New York Stock Exchange ("NYSE"), and we will continue to report our consolidated financial results in U.S. dollars and in accordance with U.S. generally accepted accounting principles ("GAAP"). We also must comply with additional reporting requirements of English law.
Basis Of Presentation-U.K. Companies Act 2006 Section 435 Statement 
Basis of Presentation—U.K. Companies Act 2006 Section 435 Statement

The accompanying consolidated financial statements have been prepared in accordance with GAAP, which the directors consider to be the most meaningful presentation of our results of operations and financial position.  The accompanying consolidated financial statements do not constitute statutory accounts required by the U.K. Companies Act 2006, which for the year ended December 31, 2012 will be prepared in accordance with generally accepted accounting principles in the U.K. and delivered to the Registrar of Companies in the U.K. following the annual general meeting of shareholders.  The U.K. statutory accounts are expected to include an unqualified auditor’s report, which is not expected to contain any references to matters on which the auditors drew attention by way of emphasis without qualifying the report or any statements under Sections 498(2) or 498(3) of the U.K. Companies Act 2006.
Principles Of Consolidation 
Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Ensco plc and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to the current year presentation.
Pervasiveness Of Estimates 
Pervasiveness of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and disclosures of gain and loss contingencies as of the date of the financial statements. Actual results could differ from those estimates.
Foreign Currency Remeasurement And Translation 
Foreign Currency Remeasurement and Translation

Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues and expenses are denominated in U.S. dollars; however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar ("foreign currencies"). These transactions are remeasured in U.S. dollars based on a combination of both current and historical exchange rates. Most transaction gains and losses, including certain gains and losses on our derivative instruments, are included in other, net, in our consolidated statement of income.  Certain gains and losses from the translation of foreign currency balances of our non-U.S. dollar functional currency subsidiaries are included in accumulated other comprehensive income on our consolidated balance sheet.  We incurred net foreign currency exchange losses of $3.5 million and net foreign currency exchange gains of $16.9 million and $3.5 million for the years ended December 31, 2012, 2011 and 2010, respectively.
Cash Equivalents And Short-Term Investments 
Cash Equivalents and Short-Term Investments

Highly liquid investments with maturities of three months or less at the date of purchase are considered cash equivalents. Highly liquid investments with maturities of greater than three months but less than one year as of the date of purchase are classified as short-term investments.

Short-term investments, consisting of time deposits with initial maturities in excess of three months but less than one year, were included in other current assets on our consolidated balance sheet and totaled $50.0 million and $4.5 million as of December 31, 2012 and 2011, respectively. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our consolidated statement of cash flows for the year ended December 31, 2012 and 2011.
Property And Equipment 
Property and Equipment

All costs incurred in connection with the acquisition, construction, major enhancement and improvement of assets are capitalized, including allocations of interest incurred during periods that our drilling rigs are under construction or undergoing major enhancements and improvements. Repair and maintenance costs are charged to contract drilling expense in the period in which they occur. Upon sale or retirement of assets, the related cost and accumulated depreciation are removed from the balance sheet and the resulting gain or loss is included in contract drilling expense, unless reclassified to discontinued operations.

Our property and equipment is depreciated on a straight-line basis, after allowing for salvage values, over the estimated useful lives of our assets. Drilling rigs and related equipment are depreciated over estimated useful lives ranging from four to 35 years.  Buildings and improvements are depreciated over estimated useful lives ranging from two to 30 years. Other equipment, including computer and communications hardware and software costs, is depreciated over estimated useful lives ranging from two to six years.
 
We evaluate the carrying value of our property and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For property and equipment used in our operations, recoverability generally is determined by comparing the carrying value of an asset to the expected undiscounted future cash flows of the asset. If the carrying value of an asset is not recoverable, the amount of impairment loss is measured as the difference between the carrying value of the asset and its estimated fair value. Property and equipment held for sale is recorded at the lower of net book value or net realizable value.
    
We recorded a $12.2 million impairment charge on ENSCO I during 2010. The rig was sold during 2012 and we reclassified the rig's operating results, including the aforementioned 2010 impairment charge, to discontinued operations in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012.  If the global economy were to deteriorate and/or the offshore drilling industry were to incur a significant prolonged downturn, it is reasonably possible that impairment charges may occur with respect to specific individual rigs, groups of rigs, such as a specific type of drilling rig, or rigs in a certain geographic location.

Goodwill 
Goodwill
 
Management of our business is a dynamic and constantly evolving process. This was especially true during 2011 and 2012 as we completed the Merger and executed integration activities. During the fourth quarter, the CODM evaluated the manner in which our business was being managed and concluded that distinctions in water depth capabilities for our floating rigs were no longer a significant factor in the performance assessment and resource allocation decision making process. The CODM requested that financial information previously disaggregated between floating rigs capable of drilling in 4,500 feet and greater (Deepwater) and floating rigs capable of drilling in 4,499 feet or less (Midwater) be combined into a single floaters category for internal financial reporting purposes effective for the fourth quarter of 2012. We now consider our drillship and semisubmersible rig fleet to be one operating segment.

Our business now consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which currently consists of management services on rigs owned by third-parties. Our two reportable segments, Floaters and Jackups, provide one service, contract drilling.
We test goodwill for impairment on an annual basis as of December 31 of each year or when events or changes in circumstances indicate that a potential impairment exists.  When testing goodwill for impairment, we perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount.

If we conclude that the fair value of one or both of our reporting units has more-likely-than-not declined below its carrying amount after qualitatively assessing existing facts and circumstances, we perform a quantitative assessment whereby we estimate the fair value of each reporting unit.  In most instances, our calculation of the fair value of our reporting units is based on estimates of future discounted cash flows to be generated by our drilling rigs in the reporting unit.

We performed quantitative assessments of both the current and historical reporting units and determined there was no impairment of goodwill as of December 31, 2012. However, if the global economy deteriorates and the offshore drilling industry was to incur a significant prolonged downturn, it is reasonably possible that our expectations of future cash flows may decline and ultimately result in a goodwill impairment.
Operating Revenues And Expenses 
Operating Revenues and Expenses

Substantially all of our drilling contracts ("contracts") are performed on a day rate basis, and the terms of such contracts are typically for a specific period of time or the period of time required to complete a specific task, such as drill a well. Contract revenues and expenses are recognized on a per day basis, as the work is performed. Day rate revenues are typically earned, and contract drilling expense is typically incurred, on a uniform basis over the terms of our contracts.

In connection with some contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. Fees received for the mobilization or demobilization of equipment and personnel are included in operating revenues. The costs incurred in connection with the mobilization and demobilization of equipment and personnel are included in contract drilling expense.

Mobilization fees received and costs incurred are deferred and recognized on a straight-line basis over the period that the related drilling services are performed. Demobilization fees and related costs are recognized as incurred upon contract completion. Costs associated with the mobilization of equipment and personnel to more promising market areas without contracts are expensed as incurred.

Deferred mobilization costs were included in other current assets and other assets, net, on our consolidated balance sheets and totaled $54.5 million and $82.2 million as of December 31, 2012 and 2011, respectively. Deferred mobilization revenue was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $52.6 million and $104.3 million as of December 31, 2012 and 2011, respectively.

In connection with some contracts, we receive up-front lump-sum fees or similar compensation for capital improvements to our drilling rigs. Such compensation is deferred and recognized as revenue over the period that the related drilling services are performed. The cost of such capital improvements is capitalized and depreciated over the useful life of the asset. Deferred revenue associated with capital improvements was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $120.4 million and $37.9 million as of December 31, 2012 and 2011, respectively.

We must obtain certifications from various regulatory bodies in order to operate our drilling rigs and must maintain such certifications through periodic inspections and surveys. The costs incurred in connection with maintaining such certifications, including inspections, tests, surveys and drydock, as well as remedial structural work and other compliance costs, are deferred and amortized over the corresponding certification periods. Deferred regulatory certification and compliance costs were included in other current assets and other assets, net, on our consolidated balance sheets and totaled $14.4 million and $9.1 million as of December 31, 2012 and 2011, respectively.

In certain countries in which we operate, taxes such as sales, use, value-added, gross receipts and excise may be assessed by the local government on our revenues. We generally record our tax-assessed revenue transactions on a net basis in our consolidated statement of income.

Derivative Instruments 
Derivative Instruments

We use foreign currency forward contracts ("derivatives") to reduce our exposure to various market risks, primarily foreign currency exchange rate risk. See "Note 6 - Derivative Instruments" for additional information on how and why we use derivatives.

All derivatives are recorded on our consolidated balance sheet at fair value. Accounting for the gains and losses resulting from changes in the fair value of derivatives depends on the use of the derivative and whether it qualifies for hedge accounting. Derivatives qualify for hedge accounting when they are formally designated as hedges and are effective in reducing the risk exposure that they are designated to hedge. Our assessment of hedge effectiveness is formally documented at hedge inception, and we review hedge effectiveness and measure any ineffectiveness throughout the designated hedge period on at least a quarterly basis.

Changes in the fair value of derivatives that are designated as hedges of the variability in expected future cash flows associated with existing recognized assets or liabilities or forecasted transactions ("cash flow hedges") are recorded in accumulated other comprehensive income ("AOCI").  Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transactions.

Gains and losses on a cash flow hedge, or a portion of a cash flow hedge, that no longer qualifies as effective due to an unanticipated change in the forecasted transaction are recognized currently in earnings and included in other, net, in our consolidated statement of income based on the change in the fair value of the derivative. When a forecasted transaction is no longer probable of occurring, gains and losses on the derivative previously recorded in AOCI are reclassified currently into earnings and included in other, net, in our consolidated statement of income.

We occasionally enter into derivatives that hedge the fair value of recognized assets or liabilities, but do not designate such derivatives as hedges or the derivatives otherwise do not qualify for hedge accounting. In these situations, there generally is a natural hedging relationship where changes in the fair value of the derivatives offset changes in the fair value of the underlying hedged items. Changes in the fair value of these derivatives are recognized currently in earnings in other, net, in our consolidated statement of income.

Derivatives with asset fair values are reported in other current assets or other assets, net, on our consolidated balance sheet depending on maturity date. Derivatives with liability fair values are reported in accrued liabilities and other, or other liabilities on our consolidated balance sheet depending on maturity date.
Income Taxes 
Income Taxes

We conduct operations and earn income in numerous countries. Current income taxes are recognized for the amount of taxes payable or refundable based on the laws and income tax rates in the taxing jurisdictions in which operations are conducted and income is earned.
 
Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of our assets and liabilities using the enacted tax rates in effect at year-end. A valuation allowance for deferred tax assets is recorded when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized.
    
We operate in jurisdictions where tax laws relating to the offshore drilling industry are not well developed and change frequently. Furthermore, we may enter into transactions with affiliates or employ other tax planning strategies that generally are subject to complex tax regulations. As a result of the foregoing, the tax liabilities and assets we recognize in our financial statements may differ from the tax positions taken, or expected to be taken, in our tax returns. Our tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to income taxes are included in current income tax expense in our consolidated statement of income.

Our drilling rigs frequently move from one taxing jurisdiction to another based on where they are contracted to perform drilling services. The movement of drilling rigs among taxing jurisdictions may involve a transfer of drilling rig ownership among our subsidiaries (“intercompany rig sale”). The pre-tax profit resulting from an intercompany rig sale is eliminated from our consolidated financial statements and the carrying value of a rig sold in an intercompany transaction remains at historical net depreciated cost prior to the transaction. Our consolidated financial statements do not reflect the asset disposition transaction of the selling subsidiary or the asset acquisition transaction of the acquiring subsidiary. Income taxes resulting from an intercompany rig sale, as well as the tax effect of any reversing temporary differences resulting from the sale, are deferred and amortized on a straight-line basis over the remaining useful life of the rig.

In some instances, we may determine that certain temporary differences will not result in a taxable or deductible amount in future years, as it is more-likely-than-not we will commence operations and depart from a given taxing jurisdiction without such temporary differences being recovered or settled. Under these circumstances, no future tax consequences are expected and no deferred taxes are recognized in connection with such operations. We evaluate these determinations on a periodic basis and, in the event our expectations relative to future tax consequences change, the applicable deferred taxes are recognized or derecognized.
   
We do not provide deferred taxes on the undistributed earnings of certain subsidiaries because our policy and intention is to reinvest such earnings indefinitely.
Share-Based Compensation 
Share-Based Compensation

We sponsor share-based compensation plans that provide equity compensation to our key employees, officers and non-employee directors. Share-based compensation cost is measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). The amount of compensation cost recognized in our consolidated statement of income is based on the awards ultimately expected to vest and, therefore, reduced for estimated forfeitures. All changes in estimated forfeitures are based on historical experience and are recognized as a cumulative adjustment to compensation cost in the period in which they occur. See "Note 8 - Benefit Plans" for additional information on our share-based compensation.
Fair Value Measurements 
Fair Value Measurements

We measure certain of our assets and liabilities based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3").  Level 2 measurements represent inputs that are observable for similar assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1.  See "Note 3 - Fair Value Measurements" for additional information on the fair value measurement of certain of our assets and liabilities.
Earnings Per Share 
Earnings Per Share
    
We compute basic and diluted earnings per share ("EPS") in accordance with the two-class method. Net income attributable to Ensco used in our computations of basic and diluted EPS is adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS includes the dilutive effect of share options using the treasury stock method and excludes non-vested shares.
 
The following table is a reconciliation of net income attributable to Ensco shares used in our basic and diluted EPS computations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
 
2012
 
2011
 
2010
Net income attributable to Ensco

$1,169.7

 

$600.4

 

$579.5

Net income allocated to non-vested share awards
(12.3
)
 
(6.9
)
 
(7.4
)
Net income attributable to Ensco shares

$1,157.4

 

$593.5

 

$572.1



The following table is a reconciliation of the weighted-average shares used in our basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2012 (in millions):

 
2012
 
2011
 
2010
Weighted-average shares - basic
229.4

 
192.2

 
141.0

Potentially dilutive share options
.3

 
.4

 
—

Weighted-average shares - diluted
229.7

 
192.6

 
141.0



Antidilutive share options totaling 400,000 for the years ended December 31, 2012 and 2011, and 1.1 million for the year ended December 31, 2010, were excluded from the computation of diluted EPS.
Noncontrolling Interests 
Noncontrolling Interests

Noncontrolling interests are classified as equity on our consolidated balance sheet and net income attributable to noncontrolling interests is presented separately on our consolidated statement of income.  Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries.
    
Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):

 
2012
 
2011
 
2010
Income from continuing operations
$
1,222.2

 
$
607.8

 
$
556.9

Income from continuing operations attributable to noncontrolling interests
(7.0
)
 
(5.2
)
 
(5.4
)
Income from continuing operations attributable to Ensco
$
1,215.2

 
$
602.6

 
$
551.5



Income from discontinued operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows:

 
2012
 
2011
 
2010
(Loss) income from discontinued operations
$
(45.5
)
 
$
(2.2
)
 
$
29.0

Income from discontinued operations attributable to
   noncontrolling interests
—

 
—

 
(1.0
)
(Loss) income from discontinued operations attributable to Ensco
$
(45.5
)
 
$
(2.2
)
 
$
28.0

New Accounting Pronouncements 
New Accounting Pronouncements

In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("Update 2013-01"), an amendment to FASB ASC Topic 210. The update clarifies that the scope of Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities, applies to derivatives accounted for in accordance with FASB ASC Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments in Update 2013-01 are to be applied retrospectively for all comparative periods presented and are effective for the Company for annual and interim periods beginning January 1, 2013. We will adopt the accounting standard effective January 1, 2013. We do not expect that our adoption will have a material effect on our consolidated financial statements.
Description Of The Business And Summary Of Significant Accounting Policies (Tables)
Reconciliation Of Net Income Attributable To Ensco Shares Used In Basic And Diluted EPS Computations 
The following table is a reconciliation of net income attributable to Ensco shares used in our basic and diluted EPS computations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
 
2012
 
2011
 
2010
Net income attributable to Ensco

$1,169.7

 

$600.4

 

$579.5

Net income allocated to non-vested share awards
(12.3
)
 
(6.9
)
 
(7.4
)
Net income attributable to Ensco shares

$1,157.4

 

$593.5

 

$572.1

Reconciliation Of The Weighted-Average Shares Used In Basic And Diluted Earnings Per Share Computations 
The following table is a reconciliation of the weighted-average shares used in our basic and diluted earnings per share computations for each of the years in the three-year period ended December 31, 2012 (in millions):

 
2012
 
2011
 
2010
Weighted-average shares - basic
229.4

 
192.2

 
141.0

Potentially dilutive share options
.3

 
.4

 
—

Weighted-average shares - diluted
229.7

 
192.6

 
141.0

Schedule Of Income From Continuing Operations Attributable To Ensco 
Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):

 
2012
 
2011
 
2010
Income from continuing operations
$
1,222.2

 
$
607.8

 
$
556.9

Income from continuing operations attributable to noncontrolling interests
(7.0
)
 
(5.2
)
 
(5.4
)
Income from continuing operations attributable to Ensco
$
1,215.2

 
$
602.6

 
$
551.5

Schedule Of Income From Discontinued Operations Attributable To Ensco 
Income from discontinued operations attributable to Ensco for each of the years in the three-year period ended December 31, 2012 was as follows:

 
2012
 
2011
 
2010
(Loss) income from discontinued operations
$
(45.5
)
 
$
(2.2
)
 
$
29.0

Income from discontinued operations attributable to
   noncontrolling interests
—

 
—

 
(1.0
)
(Loss) income from discontinued operations attributable to Ensco
$
(45.5
)
 
$
(2.2
)
 
$
28.0

 
Acquisition Of Pride International, Inc. (Tables)
Schedule Of Business Acquisition, Provisional Amounts Recorded For Assets Acquired And Liabilities Assumed 
 
Amounts Recognized as of Merger Date
 
Measurement Period Adjustments(1)
 
Estimated Fair Value
Assets:
 

 
 

 
 

Cash and cash equivalents
$
147.0

 
$
—

 
$
147.0

Accounts receivable(2)
371.3

 
38.1

 
409.4

Other current assets
150.9

 
32.7

 
183.6

Property and equipment
6,758.8

 
(9.4
)
 
6,749.4

Other assets
343.7

 
27.8

 
371.5

Liabilities:
 

 
 

 
 

Accounts payable and accrued liabilities and other
539.8

 
60.6

 
600.4

Debt 
2,436.0

 
—

 
2,436.0

Deferred income tax liabilities
19.0

 
(.1
)
 
18.9

Other liabilities
319.8

 
7.7

 
327.5

Net assets acquired
4,457.1

 
21.0

 
4,478.1

Less merger consideration
7,415.9

 
—

 
7,415.9

Goodwill
$
2,958.8

 
$
(21.0
)
 
$
2,937.8


(1) 
In the second quarter of 2012, we completed our evaluation of the purchase price allocation. As a result, during 2012, we made adjustments to the estimated fair value of certain assets and liabilities with a corresponding net adjustment to goodwill amounting to $21.0 million, which are reflected in the amounts noted above. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Merger Date and did not result from subsequent intervening events.  These adjustments primarily related to inventory, contingencies and income taxes and did not have a material impact on our previously reported financial position or results of operations subsequent to the Merger Date; however, we have retrospectively revised our 2011 consolidated financial statements to reflect these adjustments as if they were recorded as of the Merger Date. 

(2) 
Gross contractual amounts receivable totaled $466.7 million as of the Merger Date.
Business Acquisition, Pro Forma Information 
(In millions, except per share amounts) 
Year Ended
 
December 31,
 
2011*

 
2010

Revenues
$
3,451.8

 
$
3,157.2

Net income
604.8

 
805.9

Earnings per share - basic
2.61

 
3.50

Earnings per share - diluted
2.60

 
3.49


* Supplemental pro forma earnings were adjusted to exclude an aggregate $157.6 million of merger-related costs incurred by Ensco and Pride during 2011.
Fair Value Measurements (Tables)
Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following fair value hierarchy table categorizes information regarding our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011 (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, 2012
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
29.8

 
$
—

 
$
—

 
$
29.8

Derivatives, net
—

 
5.2

 
—

 
5.2

Total financial assets
$
29.8

 
$
5.2

 
$
—

 
$
35.0

As of December 31, 2011
 

 
 

 
 

 
 

Hercules Offshore, Inc. common stock
$
32.2

 
$
—

 
$
—

 
$
32.2

Supplemental executive retirement plan assets
25.6

 
—

 
—

 
$
25.6

Total financial assets
$
57.8

 
$
—

 
$
—

 
$
57.8

Derivatives, net
$
—

 
$
7.1

 
$
—

 
$
7.1

Total financial liabilities
$
—

 
$
7.1

 
$
—

 
$
7.1

Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments 
The carrying values and estimated fair values of our debt instruments as of December 31, 2012 and 2011 were as follows (in millions):
 
 
December 31, 2012
 
December 31, 2011
 
 
Carrying
Value
 
Estimated
  Fair
Value
 
Carrying
Value
 
Estimated
  Fair
Value
 
 
 
 
 
 
 
 
 
4.70% Senior notes due 2021
 
$
1,474.7

 
$
1,715.6

 
$
1,472.2

 
$
1,565.8

6.875% Senior notes due 2020
 
1,040.6

 
1,138.3

 
1,055.8

 
1,042.7

3.25% Senior notes due 2016
 
995.1

 
1,068.9

 
993.5

 
1,016.5

8.50% Senior notes due 2019
 
616.4

 
661.7

 
631.7

 
615.3

7.875% Senior notes due 2040
 
383.8

 
423.9

 
385.0

 
381.9

7.20% Debentures due 2027
 
149.0

 
193.2

 
149.0

 
167.2

4.33% MARAD bonds, including current maturities, due 2016
 
112.3

 
121.6

 
146.7

 
156.4

6.36% MARAD bonds, including current maturities, due 2015
 
38.0

 
48.7

 
50.7

 
64.0

4.65% MARAD bonds, including current maturities, due 2020
 
36.0

 
43.9

 
40.5

 
49.6

Total 
 
$
4,845.9

 
$
5,415.8

 
$
4,925.1

 
$
5,059.4

Property And Equipment (Tables)
Schedule Of Property And Equipment
Property and equipment as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Drilling rigs and equipment
 
$
13,499.4

 
$
12,672.6

Other
 
89.1

 
92.7

Work in progress
 
2,148.6

 
1,718.1

 
 
$
15,737.1

 
$
14,483.4

Debt (Tables)
Schedule Of Long-Term Debt Instruments 
The carrying value of long-term debt as of December 31, 2012 and 2011 consisted of the following (in millions):

 
 
2012
 
2011
4.70% Senior notes due 2021
 
$
1,474.7

 
$
1,472.2

6.875% Senior notes due 2020
 
1,040.6

 
1,055.8

3.25% Senior notes due 2016
 
995.1

 
993.5

8.50% Senior notes due 2019
 
616.4

 
631.7

7.875% Senior notes due 2040
 
383.8

 
385.0

7.20% Debentures due 2027
 
149.0

 
149.0

4.33% MARAD bonds due 2016
 
112.3

 
146.7

6.36% MARAD bonds due 2015
 
38.0

 
50.7

4.65% MARAD bonds due 2020
 
36.0

 
40.5

Commercial paper
 
—

 
125.0

Total debt
 
4,845.9

 
5,050.1

Less current maturities
 
(47.5
)
 
(172.5
)
Total long-term debt
 
$
4,798.4

 
$
4,877.6

Aggregate Maturities Of Long-Term Debt 
The aggregate maturities of our debt, excluding net unamortized premiums of $315.7 million, as of December 31, 2012 were as follows (in millions):
 
2013
 
$
47.5

2014
 
47.5

2015
 
47.5

2016
 
1,019.7

2017
 
4.5

Thereafter
 
3,363.5

Total
 
$
4,530.2

Derivative Instruments (Tables)
Schedule Of Derivatives At Fair Value 
Derivatives recorded at fair value in our consolidated balance sheets as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
Derivative Assets
 
Derivative Liabilities
 
2012
 
2011
 
2012
 
2011
Derivatives Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
5.0

 
$
.2

 
$
.3

 
$
7.1

Foreign currency forward contracts - non-current(2)
.5

 
.1

 
—

 
.1

 
5.5

 
.3

 
.3

 
7.2

Derivatives not Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
.2

 
—

 
.2

 
.2

 
.2

 
—

 
.2

 
.2

Total
$
5.7

 
$
.3

 
$
.5

 
$
7.4


(1) 
Derivative assets and liabilities that have maturity dates equal to or less than 12 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 12 months from the respective balance sheet dates were included in other assets, net, and other liabilities, respectively, on our consolidated balance sheets.
Gains And Losses On Derivatives Designated As Cash Flow Hedges 
Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012 were as follows (in millions):

Gain Recognized in
Other Comprehensive
Income ("OCI")
on Derivatives
  (Effective Portion)  
 
(Loss) Gain
Reclassified from
AOCI into Income
(Effective Portion)
 
(Loss) Gain Recognized
in Income on
Derivatives (Ineffective
Portion and Amount
Excluded from
Effectiveness Testing)(1)
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Interest rate lock contracts(2) 
$
—

 
$
—

 
$
—

 
$
(.5
)
 
$
(.5
)
 
$
(.6
)
 
$
—

 
$
—

 
$
—

Foreign currency forward contracts(3)
8.7

 
.1

 
7.6

 
.5

 
6.0

 
2.3

 
(.3
)
 
.3

 
.3

Total
$
8.7

 
$
.1

 
$
7.6

 
$
—

 
$
5.5

 
$
1.7

 
$
(.3
)
 
$
.3

 
$
.3

 
(1) 
Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our consolidated statements of income. 

(2) 
Gains and losses on derivatives reclassified from AOCI into income (effective portion) were included in interest expense 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 and depreciation expense in our consolidated statements of income.
Schedule Of Estimated Amount Of Net Gains Associated With Derivatives 
As of December 31, 2012, the estimated amount of net gains associated with derivatives, net of tax, that will be reclassified to earnings during the next 12 months was as follows (in millions):
Net unrealized gains to be reclassified to contract drilling expense
 
$
2.1

Net realized gains to be reclassified to depreciation expense
 
.6

Net realized (losses) to be reclassified to interest expense
 
(.4
)
Net gains to be reclassified to earnings
 
$
2.3

Shareholders' Equity (Tables)
Schedule Of Activity In Our Various Shareholders' Equity
Activity in our various shareholders' equity accounts for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 Shares 
 
 
Par Value 
 
 
Additional
Paid-in
Capital

 
Retained
Earnings

 
AOCI 
 
 
Treasury
Shares  

 
Noncontrolling
Interest

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

Net income
—

 
—

 
—

 
600.4

 
—

 
—

 
5.2

Cash dividends paid
—

 
—

 
—

 
(292.3
)
 
—

 
—

 
—

Distributions to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

 
(5.5
)
Shares issued under share-based compensation plans, net
—

 
—

 
39.7

 
—

 
—

 
.2

 
—

Shares issued in connection with the Merger
85.8

 
8.6

 
4,568.9

 
—

 
—

 
—

 
—

Fair value of share options assumed in connection with the Merger
—

 
—

 
35.4

 
—

 
—

 
—

 
—

Equity issuance costs
—

 
—

 
(70.5
)
 
—

 
—

 
—

 
—

Tax benefit from share-based compensation
—

 
—

 
.5

 
—

 
—

 
—

 
—

Repurchase of shares
—

 
—

 
—

 
—

 
—

 
(10.5
)
 
—

Share-based compensation cost
—

 
—

 
41.9

 
—

 
—

 
—

 
—

Net other comprehensive loss
—

 
—

 
—

 
—

 
(2.5
)
 
—

 
—

BALANCE, December 31, 2011
235.9

 
23.7

 
5,253.0

 
5,613.1

 
8.6

 
(19.1
)
 
5.2

Net income
—

 
—

 
—

 
1,169.7

 
—

 
—

 
7.0

Cash dividends paid
—

 
—

 
—

 
(348.1
)
 
—

 
—

 
—

Distributions to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

 
(6.5
)
Shares issued in connection with share-based compensation plans, net
1.8

 
.2

 
35.3

 
—

 
—

 
(.1
)
 
—

Equity issuance cost refunds
—

 
—

 
66.7

 
—

 
—

 
—

 
—

Tax deficiency from share-based compensation
—

 
—

 
(1.0
)
 
—

 
—

 
—

 
—

Repurchase of shares
—

 
—

 
—

 
—

 
—

 
(11.8
)
 
—

Share-based compensation cost
—

 
—

 
44.7

 
—

 
—

 
—

 
—

Net other comprehensive income
—

 
—

 
—

 
—

 
11.5

 
—

 
—

BALANCE, December 31, 2012
237.7

 
$
23.9

 
$
5,398.7

 
$
6,434.7

 
$
20.1

 
$
(31.0
)
 
$
5.7

Benefit Plans (Tables)
Summary Of Non-Vested Share Award Related Compensation Expense Recognized 
The following table summarizes non-vested share award related compensation expense recognized during each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Contract drilling
$
17.1

 
$
17.0

 
$
17.2

General and administrative
24.8

 
21.5

 
13.9

Non-vested share award related compensation expense included in operating expenses
41.9

 
38.5

 
31.1

Tax benefit
(7.0
)
 
(6.9
)
 
(6.3
)
Total non-vested share award related compensation expense included in net income
$
34.9

 
$
31.6

 
$
24.8

Summary Of Value Of Non-Vested Share Awards Granted And Vested 
The following table summarizes the value of non-vested share awards granted and vested during each of the years in the three-year period ended December 31, 2012:

 
2012
 
2011
 
2010
Weighted-average grant-date fair value of
 

 
 

 
 

non-vested share awards granted (per share)
$
48.32

 
$
52.50

 
$
35.81

Total fair value of non-vested share awards
 

 
 

 
 

vested during the period (in millions)
$
42.5

 
$
41.0

 
$
22.1

Summary Of Non-Vested Share Award Activity 
The following table summarizes non-vested share award activity for the year ended December 31, 2012 (shares in thousands): 
 
Shares
 
Weighted-Average
Grant-Date
Fair Value
 
 
 
 
Non-vested as of December 31, 2011
2,376

 
$
46.69

Granted
1,204

 
48.32

Vested
(829
)
 
51.10

Forfeited
(260
)
 
48.66

Non-vested as of December 31, 2012
2,491

 
$
46.52

Summary Of Option Related Compensation Expense Recognized 
The following table summarizes option related compensation expense recognized during each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Contract drilling
$
—

 
$
—

 
$
.7

General and administrative
1.6

 
2.5

 
2.8

Option related compensation expense included in operating expenses
1.6

 
2.5

 
3.5

Tax benefit
(.3
)
 
(.5
)
 
(.6
)
Total option related compensation expense included in net income
$
1.3

 
$
2.0

 
$
2.9

Weighted-Average Assumptions Utilizing The Black-Scholes Model 
The following weighted-average assumptions were utilized in the Black-Scholes model for options granted during the years ended December 31, 2011 and 2010:
 
 
2011
 
2010
Risk-free interest rate
 
1.4
%
 
1.8
%
Expected term (in years)
 
3.7

 
4.0

Expected volatility
 
50.2
%
 
53.1
%
Dividend yield
 
2.6
%
 
4.1
%
Summary Of Option Activity 
The following table summarizes option activity for the year ended December 31, 2012 (shares and intrinsic value in thousands, term in years):
 
Shares
 
Weighted-Average
Exercise Price
 
Weighted-Average
Contractual
Term
 
Intrinsic
Value
 
 
 
 
 
 
 
 
Outstanding as of December 31, 2011
2,289

 
$
42.78

 
 

 
 

Granted
—

 
—

 
 

 
 

Exercised
(939
)
 
38.00

 
 

 
 

Forfeited
—

 
—

 
 

 
 

Expired
(4
)
 
52.61

 
 

 
 

Outstanding as of December 31, 2012
1,346

 
$
46.05

 
3.2

 
$
18,240

Exercisable as of December 31, 2012
1,241

 
$
45.93

 
3.0

 
$
17,005

Summary Of Value Of Options Granted And Exercised 
The following table summarizes the value of options granted and exercised during each of the years in the three-year period ended December 31, 2012:

 
2012
 
2011
 
2010
Weighted-average grant-date fair value of
options granted (per share)
$
—

 
$
19.05

 
$
11.05

Intrinsic value of options exercised during
the year (in millions)
$
17.8

 
$
17.2

 
$
.4

Summary Of Options Outstanding 
The following table summarizes information about options outstanding as of December 31, 2012 (shares in thousands):

 
Options Outstanding

 
Options Exercisable

 
 
Number     
 
Weighted-Average
Remaining
 
Weighted-Average
 
Number
 
Weighted-Average
Exercise Prices

 
Outstanding
 
Contractual Life
 
Exercise Price  
 
Exercisable
 
Exercise Price
$18.87  - $40.99
 
387
 
4.6 years
 
$32.90
 
349
 
$32.73
41.18  -   50.09
 
368
 
3.6 years
 
43.08
 
368
 
43.08
50.28  -   55.34
 
295
 
2.5 years
 
52.27
 
228
 
51.52
57.38  -   60.74
 
296
 
1.4 years
 
60.71
 
296
 
60.71
 
 
1,346
 
3.2 years
 
$46.05
 
1,241
 
$45.93
Goodwill and Other Intangible Assets and Liabilities (Tables)
Changes In The Carrying Amount Of Goodwill 
The carrying amount of goodwill as of December 31, 2012 is detailed below by reporting unit (in millions):
Floaters

$3,081.4

Jackups
192.6

Total

$3,274.0

Schedule of Other Intangible Assets and Liabilities 
The gross carrying amounts of our drilling contract intangibles, which we consider to be definite-lived intangibles assets and intangible liabilities, and accumulated amortization as of December 31, 2012 and 2011 were as follows (in millions):
 
 
December 31, 2012
 
December 31, 2011
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Drilling contract intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
209.0

 
$
(36.4
)
 
$
172.6

 
$
209.0

 
$
—

 
$
209.0

Amortization
 
—

 
(51.9
)
 
(51.9
)
 
—

 
(36.4
)
 
(36.4
)
Balance, end of period
 
$
209.0

 
$
(88.3
)
 
$
120.7

 
$
209.0

 
$
(36.4
)
 
$
172.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Drilling contract intangible liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
278.0

 
$
(92.8
)
 
$
185.2

 
$
278.0

 
$
—

 
$
278.0

Amortization
 
—

 
(67.2
)
 
(67.2
)
 
—

 
(92.8
)
 
(92.8
)
Balance, end of period
 
$
278.0

 
$
(160.0
)
 
$
118.0

 
$
278.0

 
$
(92.8
)
 
$
185.2

Schedule of Expected Amortization Income (Expense) 
The estimated future amortization income (expense) related to these intangible assets and liabilities as of December 31, 2012, was as follows (in millions):
2013
 
$
6.6

2014
 
(4.3
)
2015
 
(4.5
)
2016
 
(0.8
)
2017
 
.3

Thereafter
 
—

Total
 
$
(2.7
)
Income Taxes (Tables)
Summary Of Components Of Provision For Income Taxes From Continuing Operations 
The following table summarizes components of the provision for income taxes from continuing operations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
2012
 
2011
 
2010
Current income tax expense:
 

 
 

 
 

U.S.
$
42.8

 
$
40.7

 
$
9.5

Non-U.S.
183.6

 
94.2

 
71.0

 
226.4

 
134.9

 
80.5

Deferred income tax expense (benefit):
 

 
 

 
 

U.S.
32.0

 
(14.8
)
 
15.2

Non-U.S.
(14.0
)
 
(4.7
)
 
1.5

 
18.0

 
(19.5
)
 
16.7

Total income tax expense
$
244.4

 
$
115.4

 
$
97.2

Summary Of Significant Components Of Deferred Income Tax Assets (Liabilities) 
The following table summarizes significant components of deferred income tax assets (liabilities) as of December 31, 2012 and 2011 (in millions):


 
2012
 
2011
Deferred tax assets:
 


 
 

Foreign tax credits
 
$
173.4

 
$
92.6

Premium on long-term debt
 
124.0

 
135.7

Net operating loss carryforwards
 
87.8

 
193.1

Employee benefits, including share-based compensation
 
33.4

 
33.3

Deferred revenue
 
22.7

 
32.0

Other
 
24.5

 
29.1

Total deferred tax assets
 
465.8

 
515.8

Valuation allowance
 
(227.1
)
 
(224.7
)
Net deferred tax assets
 
238.7

 
291.1

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(472.9
)
 
(493.6
)
Intercompany transfers of property
 
(32.2
)
 
(38.8
)
Deferred costs
 
(20.9
)
 
(36.6
)
Other
 
(31.3
)
 
(25.2
)
Total deferred tax liabilities
 
(557.3
)
 
(594.2
)
Net deferred tax liability
 
$
(318.6
)
 
$
(303.1
)
Net current deferred tax asset
 
$
13.8

 
$
10.4

Net noncurrent deferred tax liability
 
(332.4
)
 
(313.5
)
Net deferred tax liability
 
$
(318.6
)
 
$
(303.1
)
Summary Of Effective Income Tax Rate On Continuing Operations 
Our consolidated effective income tax rate on continuing operations for each of the years in the three-year period ended December 31, 2012, differs from the U.K. statutory income tax rate as follows:

 
2012
 
2011
 
2010
U.K. statutory income tax rate
24.5
 %
 
26.5
 %
 
28.0
 %
Non-U.K. taxes
(15.5
)
 
(19.6
)
 
(18.9
)
Amortization of net deferred charges
   associated with intercompany rig sales
.6

 
1.0

 
2.6

Income taxes associated with restructuring transactions
3.5

 
—

 
—

Valuation allowance
2.6

 
6.8

 
1.6

Net expense (benefit) associated with uncertain tax positions and other adjustments relating to prior years
1.0

 
.8

 
(.5
)
Other
—

 
.4

 
2.1

Effective income tax rate
16.7
 %
 
15.9
 %
 
14.9
 %
Summary Of Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits 
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2012 and 2011 is as follows (in millions):

 
 
2012
 
2011
Balance, beginning of year
 
$
53.6

 
$
13.7

Unrecognized tax benefits assumed in the Merger
 
—

 
34.8

   Increases in unrecognized tax benefits as a result
      of tax positions taken during the current year
 
60.7

 
1.9

   Increases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
21.3

 
6.1

   Decreases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
(.4
)
 
—

Settlements with taxing authorities
 
(4.1
)
 
—

Lapse of applicable statutes of limitations
 
(20.8
)
 
(2.0
)
Impact of foreign currency exchange rates
 
.4

 
(.9
)
Balance, end of year
 
$
110.7

 
$
53.6

Discontinued Operations (Tables)
Summary Of Rig Sales and Income From Discontinued Operations
The following table summarizes income from discontinued operations for each of the years in the three-year period ended December 31, 2012 (in millions):
 
 
2012
 
2011
 
2010

Revenues
 
$
6.7

 
$
45.0

 
$
35.1

Operating expenses
 
44.3

 
44.4

 
49.3

Operating (loss) income before income taxes
 
(37.6
)
 
.6

 
(14.2
)
Other income (expense)
 
1.3

 
.2

 
—

Income tax benefit (expense)
 
7.3

 
(4.8
)
 
4.6

(Loss) gain on disposal of discontinued operations, net
 
(16.5
)
 
1.8

 
38.6

(Loss) income from discontinued operations
 
$
(45.5
)
 
$
(2.2
)
 
$
29.0

We sold the following rigs during the three-year period ended December 31, 2012 (in millions):
Rig
 
Date of Rig Sale
 
Segment(1)
 
Net Proceeds
 
Net Book Value(2)
 
Pre-tax Gain/(Loss)(3)
ENSCO 5003
 
December 2012
 
Floaters
 
$
68.2

 
$
89.4

 
$
(21.2
)
Pride Hawaii
 
October 2012
 
Jackups
 
18.8

 
16.8

 
2.0

ENSCO I
 
September 2012
 
Other
 
4.5

 
12.3

 
(7.8
)
ENSCO 61
 
June 2012
 
Jackups
 
31.7

 
19.6

 
12.1

ENSCO 59
 
May 2012
 
Jackups
 
22.8

 
21.9

 
.9

ENSCO 95
 
June 2011
 
Jackups
 
41.5

 
28.8

 
12.7

ENSCO 60
 
November 2010
 
Jackups
 
25.7

 
20.0

 
5.7

ENSCO 57
 
April 2010
 
Jackups
 
47.1

 
29.2

 
17.9

ENSCO 50 & ENSCO 51
 
March 2010
 
Jackups
 
94.7

 
60.8

 
33.9

 
 
 
 
 
 
$
355.0

 
$
298.8

 
$
56.2

(1) The rigs' operating results were reclassified to discontinued operations in our consolidated statements of income for each of the years in the three-year period ended December 31, 2012 and previously were included within the operating segment noted in the above table.
(2) Includes the rig's net book value as well as inventory and other assets on the date of the sale.
(3) The pre-tax gain/(loss) was included in (loss)/gain on disposal of discontinued operations, net in our consolidated statement of income in the year of sale.
Commitments And Contingencies (Tables)
Capital Commitments
The following table summarizes the aggregate contractual commitments related to our three ultra-deepwater drillships and our three ultra-high specification harsh environment jackup rigs under construction as of December 31, 2012 (in millions): 
2013
 
$
924.2

2014
 
942.1

Total
 
$
1,866.3

Segment Information (Tables)
Schedule Of Segment Reporting Information 
n.

Year Ended December 31, 2012
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
2,707.8

 
$
1,510.1

 
$
82.8

 
$
4,300.7

 
$
—

 
$
4,300.7

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
1,225.1

 
741.8

 
61.1

 
2,028.0

 
—

 
2,028.0

Depreciation
382.3

 
167.4

 
—

 
549.7

 
8.9

 
558.6

General and administrative
—

 
—

 
—

 
—

 
148.9

 
148.9

Operating income (loss)
$
1,100.4

 
$
600.9

 
$
21.7

 
$
1,723.0

 
$
(157.8
)
 
$
1,565.2

Property and equipment, net
$
10,727.6

 
$
2,389.8

 
$
—

 
$
13,117.4

 
$
28.2

 
$
13,145.6

Capital expenditures
$
1,575.5

 
$
224.0

 
$
—

 
$
1,799.5

 
$
2.7

 
$
1,802.2



Year Ended December 31, 2011
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
1,532.8

 
$
1,212.5

 
$
52.4

 
$
2,797.7

 
$
—

 
$
2,797.7

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
785.1

 
621.1

 
42.9

 
1,449.1

 
—

 
1,449.1

Depreciation
235.9

 
168.6

 
—

 
404.5

 
4.4

 
408.9

General and administrative
—

 
—

 
—

 
—

 
158.6

 
158.6

Operating income (loss)
$
511.8

 
$
422.8

 
$
9.5

 
$
944.1

 
$
(163.0
)
 
$
781.1

Property and equipment, net
$
9,923.6

 
$
2,462.4

 
$
12.8

 
$
12,398.8

 
$
23.1

 
$
12,421.9

Capital expenditures
$
436.7

 
$
278.3

 
$
—

 
$
715.0

 
$
14.0

 
$
729.0


Year Ended December 31, 2010
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
475.2

 
$
1,199.0

 
$
—

 
$
1,674.2

 
$
—

 
$
1,674.2

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling (exclusive
     of depreciation)
176.1

 
565.7

 
—

 
741.8

 
—

 
741.8

Depreciation
44.8

 
164.3

 
—

 
209.1

 
1.3

 
210.4

General and administrative
—

 
—

 
—

 
—

 
86.1

 
86.1

Operating income (loss)
$
254.3

 
$
469.0

 
$
—

 
$
723.3

 
$
(87.4
)
 
$
635.9

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

 
In
Schedule Of Geographic Distribution Of Rigs By Segment 
As of December 31, 2012, the geographic distribution of our drilling rigs by operating segment was as follows:
 
Floaters

 
Jackups

 
Total *

North & South America (excluding Brazil)
8
 
14
 
22
Brazil
10
 
—
 
10
Europe & Mediterranean
1
 
8
 
9
Middle East & Africa
4
 
10
 
14
Asia & Pacific Rim
2
 
11
 
13
Asia & Pacific Rim (under construction)
3
 
3
 
6
Total
28
 
46
 
74
 
*We provide management services on three rigs owned by third-parties not included in the table above. 
Schedule Of Revenues And Long-Lived Assets By Geographical Segment 
Information by country for those countries that account for more than 10% of total revenues or 10% of our long-lived assets was as follows (in millions):
 
Revenues
 
Long-lived Assets
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
United States
$
1,291.3

 
$
753.8

 
$
421.3

 
$
4,525.9

 
$
3,450.6

 
$
1,993.3

Brazil
1,093.2

 
575.6

 
—

 
2,911.3

 
3,101.8

 
—

Angola
431.7

 
243.7

 
—

 
2,147.2

 
1,347.9

 
—

United Kingdom
314.1

 
240.4

 
219.0

 
436.8

 
398.9

 
429.2

Australia
136.4

 
61.2

 
225.3

 
345.1

 
350.6

 
194.9

Mexico
124.6

 
148.3

 
179.8

 
189.1

 
206.3

 
259.3

Singapore
—

 
—

 
—

 
367.4

 
1,082.3

 
1,235.6

Other countries
909.4

 
774.7

 
628.8

 
2,222.8

 
2,483.5

 
937.6

Total
$
4,300.7

 
$
2,797.7

 
$
1,674.2

 
$
13,145.6

 
$
12,421.9

 
$
5,049.9

Supplemental Financial Information (Tables)
Accounts Receivable, Net 
Accounts receivable, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Trade
 
$
812.4

 
$
818.2

Other
 
18.2

 
48.6

 
 
830.6

 
866.8

Allowance for doubtful accounts
 
(19.2
)
 
(15.1
)
 
 
$
811.4

 
$
851.7

Other Current Assets 
Other current assets as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Inventory
 
$
207.8

 
$
201.4

Prepaid taxes
 
62.2

 
64.9

Short-term investments
 
50.0

 
4.5

Deferred mobilization costs
 
33.7

 
43.8

Prepaid expenses
 
20.3

 
22.3

Deferred tax assets
 
14.6

 
9.8

Assets held for sale
 
14.2

 
—

Marketable securities
 
—

 
32.2

Other
 
22.6

 
20.0

 
 
$
425.4

 
$
398.9

Other Assets, Net 
Other assets, net, as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Intangible assets
 
$
143.3

 
$
197.3

Unbilled receivables
 
77.1

 
119.4

Prepaid taxes on intercompany transfers of property
 
58.3

 
68.8

Warranty and other claim receivables
 
30.6

 
—

Supplemental executive retirement plan assets
 
29.8

 
25.6

Deferred mobilization costs
 
20.8

 
38.4

Deferred tax assets
 
19.3

 
25.9

Wreckage and debris removal receivables
 
13.2

 
19.8

Other
 
29.4

 
26.4

 
 
$
421.8

 
$
521.6

Accrued Liabilities And Other 
Accrued liabilities and other as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Personnel costs
 
$
231.1

 
$
159.9

Deferred revenue
 
146.2

 
111.3

Taxes
 
86.9

 
74.0

Accrued interest
 
67.9

 
69.4

Wreckage and debris removal
 
9.0

 
16.0

Intangible liabilities
 
—

 
43.4

Other
 
43.3

 
41.7

 
 
$
584.4

 
$
515.7

Other Liabilities 
Other liabilities as of December 31, 2012 and 2011 consisted of the following (in millions):
 
 
2012
 
2011
Deferred revenue
 
$
224.5

 
$
124.4

Intangible liabilities
 
118.0

 
177.8

Unrecognized tax benefits (inclusive of interest and penalties)

 
129.6

 
75.5

Supplemental executive retirement plan liabilities
 
33.3

 
30.1

Other
 
68.0

 
56.8

 
 
$
573.4

 
$
464.6

Repair And Maintenance Expense Related To Continuing Operations 
Repair and maintenance expense related to continuing operations for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Repair and maintenance expense
 
$
344.9

 
$
263.7

 
$
117.8

Cash Paid For Interest And Income Taxes 
Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2012 was as follows (in millions):
 
 
2012
 
2011
 
2010
Interest, net of amounts capitalized
 
$
150.7

 
$
28.6

 
$
—

Income taxes
 
103.5

 
123.9

 
171.6

Guarantee Of Registered Securities (Tables)
Condensed Consolidating Statements Of Income 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
 Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco  
 
 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
44.0

 
$
147.6

 
$
—

 
$
4,429.2

 
$
(320.1
)
 
$
4,300.7

OPERATING EXPENSES


 


 


 


 


 


Contract drilling (exclusive of depreciation)
51.2

 
147.6

 
—

 
2,149.3

 
(320.1
)
 
2,028.0

Depreciation
.4

 
3.5

 
—

 
554.7

 
—

 
558.6

General and administrative
63.8

 
.4

 
—

 
84.7

 
—

 
148.9

OPERATING (LOSS) INCOME
(71.4
)
 
(3.9
)
 
—

 
1,640.5

 
—

 
1,565.2

OTHER (EXPENSE) INCOME, NET
(41.8
)
 
(7.0
)
 
(50.0
)
 
.2

 
—

 
(98.6
)
(LOSS) INCOME BEFORE INCOME TAXES
(113.2
)
 
(10.9
)
 
(50.0
)
 
1,640.7

 
—

 
1,466.6

INCOME TAX PROVISION
—

 
68.8

 
—

 
175.6

 
—

 
244.4

DISCONTINUED OPERATIONS, NET
—

 
—

 
—

 
(45.5
)
 
—

 
(45.5
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
1,282.9

 
335.9

 
239.2

 
—

 
(1,858.0
)
 
—

NET INCOME
1,169.7

 
256.2

 
189.2

 
1,419.6

 
(1,858.0
)
 
1,176.7

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(7.0
)
 
—

 
(7.0
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
1,169.7

 
$
256.2

 
$
189.2

 
$
1,412.6

 
$
(1,858.0
)
 
$
1,169.7


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
 Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco  
 
 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
—

 
$
70.0

 
$
—

 
$
2,869.5

 
$
(141.8
)
 
$
2,797.7

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
46.9

 
70.0

 
—

 
1,474.0

 
(141.8
)
 
1,449.1

Depreciation
.4

 
1.8

 
—

 
406.7

 
—

 
408.9

General and administrative
52.2

 
—

 
—

 
106.4

 
—

 
158.6

OPERATING (LOSS) INCOME
(99.5
)
 
(1.8
)
 
—

 
882.4

 
—

 
781.1

OTHER INCOME (EXPENSE), NET
32.1

 
.4

 
(22.7
)
 
(67.7
)
 
—

 
(57.9
)
(LOSS) INCOME BEFORE INCOME TAXES
(67.4
)
 
(1.4
)
 
(22.7
)
 
814.7

 
—

 
723.2

INCOME TAX PROVISION
—

 
38.5

 
1.5

 
75.4

 
—

 
115.4

DISCONTINUED OPERATIONS, NET


 
(11.1
)
 


 
8.9

 


 
(2.2
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
667.8

 
271.5

 
143.9

 
—

 
(1,083.2
)
 
—

NET INCOME
600.4

 
220.5

 
119.7

 
748.2

 
(1,083.2
)
 
605.6

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
—

 
—

 
—

 
(5.2
)
 
—

 
(5.2
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
220.5

 
$
119.7

 
$
743.0

 
$
(1,083.2
)
 
$
600.4


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2010
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total  

OPERATING REVENUES
$
—

 
$
53.4

 
$
1,725.9

 
$
(105.1
)
 
$
1,674.2

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

  Contract drilling (exclusive of depreciation)
29.0

 
53.4

 
764.5

 
(105.1
)
 
741.8

Depreciation
.2

 
1.0

 
209.2

 
—

 
210.4

General and administrative
55.1

 
—

 
31.0

 
—

 
86.1

OPERATING (LOSS) INCOME
(84.3
)
 
(1.0
)
 
721.2

 
—

 
635.9

OTHER INCOME (EXPENSE), NET
55.6

 
3.8

 
(41.2
)
 
—

 
18.2

(LOSS) INCOME BEFORE INCOME TAXES
(28.7
)
 
2.8

 
680.0

 
—

 
654.1

INCOME TAX PROVISION
1.3

 
43.4

 
52.5

 
—

 
97.2

DISCONTINUED OPERATIONS, NET
—

 
(16.7
)
 
45.7

 


 
29.0

EQUITY EARNINGS IN AFFILIATES,
NET OF TAX
609.5

 
137.7

 
—

 
(747.2
)
 
—

NET INCOME
579.5

 
80.4

 
673.2

 
(747.2
)
 
585.9

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
—

 
—

 
(6.4
)
 
—

 
(6.4
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
579.5

 
$
80.4

 
$
666.8

 
$
(747.2
)
 
$
579.5

Schedule of Condensed Consolidated Statements of Comprehensive Income 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2012
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
1,169.7

 
$
256.2

 
$
189.2

 
$
1,419.6

 
$
(1,858.0
)
 
$
1,176.7

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
4.0

 
—

 
4.7

 
—

 
8.7

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
—

 
(.2
)
 
—

 
—

Other
—

 
—

 
—

 
2.8

 
—

 
2.8

NET OTHER COMPREHENSIVE INCOME
—

 
4.2

 
—

 
7.3

 
—

 
11.5

 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,169.7

 
260.4

 
189.2

 
1,426.9

 
(1,858.0
)
 
1,188.2

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(7.0
)
 
—

 
(7.0
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
1,169.7

 
$
260.4

 
$
189.2

 
$
1,419.9

 
$
(1,858.0
)
 
$
1,181.2



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2011
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
600.4

 
$
220.5

 
$
119.7

 
$
748.2

 
$
(1,083.2
)
 
$
605.6

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
(7.5
)
 
—

 
7.6

 
—

 
.1

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
—

 
(5.7
)
 
—

 
(5.5
)
Other
—

 
—

 
—

 
2.9

 
—

 
2.9

NET OTHER COMPREHENSIVE (LOSS) INCOME
—

 
(7.3
)
 
—

 
4.8

 
—

 
(2.5
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
600.4

 
213.2

 
119.7

 
753.0

 
(1,083.2
)
 
603.1

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
—

 
(5.2
)
 
—

 
(5.2
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
213.2

 
$
119.7

 
$
747.8

 
$
(1,083.2
)
 
$
597.9




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended December 31, 2010
(in millions)
 
 
Ensco plc
 
ENSCO International Incorporated
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
579.5

 
$
80.4

 
$
673.2

 
$
(747.2
)
 
$
585.9

OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
—

 
1.2

 
6.4

 
—

 
7.6

Reclassification of gains and losses on derivative instruments from other comprehensive loss (income) into net income
—

 
.2

 
(1.9
)
 
—

 
(1.7
)
Other
—

 
—

 
—

 
—

 
—

NET OTHER COMPREHENSIVE (LOSS) INCOME
—

 
1.4

 
4.5

 
—

 
5.9

 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
579.5

 
81.8

 
677.7

 
(747.2
)
 
591.8

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
—

 
—

 
(6.4
)
 
—

 
(6.4
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
579.5

 
$
81.8

 
$
671.3

 
$
(747.2
)
 
$
585.4

Condensed Consolidating Balance Sheets 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
Pride
International, Inc. 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

                          ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
271.8

 
$
1.7

 
$
85.0

 
$
128.6

 
$
—

 
$
487.1

Accounts receivable, net 
—

 
.2

 
—

 
811.2

 
—

 
811.4

Accounts receivable from
  affiliates
1,294.5

 
226.5

 
—

 
2,375.1

 
(3,896.1
)
 
—

Other
2.8

 
24.9

 
—

 
397.7

 
—

 
425.4

 Total current assets
1,569.1

 
253.3

 
85.0

 
3,712.6

 
(3,896.1
)
 
1,723.9

PROPERTY AND EQUIPMENT,AT COST
2.1

 
30.2

 
—

 
15,704.8

 
—

 
15,737.1

Less accumulated depreciation
1.1

 
23.5

 
—

 
2,566.9

 
—

 
2,591.5

Property and equipment, net  
1.0

 
6.7

 
—

 
13,137.9

 
—

 
13,145.6

GOODWILL
—

 
—

 
—

 
3,274.0

 
—

 
3,274.0

DUE FROM AFFILIATES
3,483.5

 
3,594.7

 
1,628.4

 
4,748.9

 
(13,455.5
)
 
—

INVESTMENTS IN AFFILIATES
13,469.3

 
2,693.8

 
3,824.8

 
—

 
(19,987.9
)
 
—

OTHER ASSETS, NET 
11.3

 
67.4

 
—

 
343.1

 
—

 
421.8

 
$
18,534.2

 
$
6,615.9

 
$
5,538.2

 
$
25,216.5

 
$
(37,339.5
)
 
$
18,565.3

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
31.0

 
$
28.1

 
$
34.1

 
$
849.0

 
$
—

 
$
942.2

Accounts payable to affiliates
2,364.8

 
136.9

 
—

 
1,394.4

 
(3,896.1
)
 
—

Current maturities of long-term
  debt
—

 
—

 
—

 
47.5

 
—

 
47.5

Total current liabilities
2,395.8

 
165.0

 
34.1

 
2,290.9

 
(3,896.1
)
 
989.7

DUE TO AFFILIATES 
1,816.7

 
2,054.7

 
877.5

 
8,706.6

 
(13,455.5
)
 
—

LONG-TERM DEBT 
2,469.6

 
149.0

 
2,040.8

 
139.0

 
—

 
4,798.4

DEFERRED INCOME TAXES
—

 
335.1

 
—

 
16.6

 
—

 
351.7

OTHER LIABILITIES
—

 
—

 
10.8

 
562.6

 
—

 
573.4

ENSCO SHAREHOLDERS' EQUITY 
11,852.1

 
3,912.1

 
2,575.0

 
13,495.1

 
(19,987.9
)
 
11,846.4

NONCONTROLLING INTERESTS
—

 
—

 
—

 
5.7

 
—

 
5.7

Total equity
11,852.1

 
3,912.1

 
2,575.0

 
13,500.8

 
(19,987.9
)
 
11,852.1

      
$
18,534.2

 
$
6,615.9

 
$
5,538.2

 
$
25,216.5

 
$
(37,339.5
)
 
$
18,565.3

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporated

 
Pride
International, Inc. 

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

                          ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
   Cash and cash equivalents
$
236.6

 
$
—

 
$
22.6

 
$
171.5

 
$
—

 
$
430.7

Accounts receivable, net 
—

 
.3

 
5.2

 
846.2

 
—

 
851.7

Accounts receivable from
  affiliates
1,268.4

 
89.8

 
278.2

 
1,194.5

 
(2,830.9
)
 
—

Other
2.8

 
35.2

 
46.2

 
314.7

 
—

 
398.9

 Total current assets
1,507.8

 
125.3

 
352.2

 
2,526.9

 
(2,830.9
)
 
1,681.3

PROPERTY AND EQUIPMENT,
AT COST
1.8

 
30.6

 
—

 
14,451.0

 
—

 
14,483.4

Less accumulated depreciation
.7

 
23.8

 
—

 
2,037.0

 
—

 
2,061.5

Property and equipment, net  
1.1

 
6.8

 
—

 
12,414.0

 
—

 
12,421.9

GOODWILL
—

 
—

 
—

 
3,274.0

 
—

 
3,274.0

DUE FROM AFFILIATES
2,002.3

 
2,486.9

 
313.5

 
3,638.7

 
(8,441.4
)
 
—

INVESTMENTS IN AFFILIATES
12,041.9

 
2,966.0

 
4,802.6

 
—

 
(19,810.5
)
 
—

OTHER ASSETS, NET 
13.9

 
83.4

 
9.8

 
414.5

 
—

 
521.6

 
$
15,567.0

 
$
5,668.4

 
$
5,478.1

 
$
22,268.1

 
$
(31,082.8
)
 
$
17,898.8

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
30.4

 
$
20.0

 
$
27.4

 
$
1,082.3

 
$
—

 
$
1,160.1

Accounts payable to affiliates
575.1

 
606.6

 
85.2

 
1,564.0

 
(2,830.9
)
 
—

Short-term debt 
125.0

 
—

 
—

 
—

 
—

 
125.0

Current maturities of long-term
  debt
—

 
—

 
—

 
47.5

 
—

 
47.5

Total current liabilities
730.5

 
626.6

 
112.6

 
2,693.8

 
(2,830.9
)
 
1,332.6

DUE TO AFFILIATES 
2,191.7

 
1,058.2

 
401.3

 
4,790.2

 
(8,441.4
)
 
—

LONG-TERM DEBT 
2,465.7

 
149.0

 
2,072.5

 
190.4

 
—

 
4,877.6

DEFERRED INCOME TAXES
—

 
326.8

 
—

 
12.7

 
—

 
339.5

OTHER LIABILITIES
—

 
5.2

 
18.7

 
440.7

 
—

 
464.6

ENSCO SHAREHOLDERS' EQUITY 
10,179.1

 
3,502.6

 
2,873.0

 
14,135.1

 
(19,810.5
)
 
10,879.3

NONCONTROLLING INTERESTS
—

 
—

 
—

 
5.2

 
—

 
5.2

Total equity
10,179.1

 
3,502.6

 
2,873.0

 
14,140.3

 
(19,810.5
)
 
10,884.5

      
$
15,567.0

 
$
5,668.4

 
$
5,478.1

 
$
22,268.1

 
$
(31,082.8
)
 
$
17,898.8

Condensed Consolidating Statements Of Cash Flows 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2012
(in millions)
 
Ensco plc

 
ENSCO
International Incorporation  

 
Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Net cash (used in) provided by
     operating activities of continuing operations
$
(71.6
)
 
$
(38.2
)
 
$
(21.6
)
 
$
2,331.6

 
$
—

 
$
2,200.2

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment 
—

 
—

 
—

 
(1,802.2
)
 
—

 
(1,802.2
)
Other
(.3
)
 
.4

 
—

 
(42.4
)
 
—

 
(42.3
)
Net cash (used in) provided by investing activities of continuing operations 
(.3
)
 
.4

 
—

 
(1,844.6
)
 
—

 
(1,844.5
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Cash dividends paid
(348.1
)
 
—

 
—

 
—

 
—

 
(348.1
)
Reduction of long-term
  borrowings
—

 
—

 
—

 
(47.5
)
 
—

 
(47.5
)
Commercial paper borrowings,
   net
(125.0
)
 
—

 
—

 
—

 
—

 
(125.0
)
Equity issuance reimbursement
66.7

 
—

 
—

 
—

 
—

 
66.7

Proceeds from exercise of share
  options
23.9

 
11.9

 
—

 
—

 
—

 
35.8

Advances from (to) affiliates
501.2

 
27.6

 
84.0

 
(612.8
)
 
—

 
—

Other
(11.6
)
 
—

 
—

 
(5.8
)
 
—

 
(17.4
)
      Net cash provided by (used in)
         financing activities of
    continuing operations
107.1

 
39.5

 
84.0

 
(666.1
)
 
—

 
(435.5
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Operating activities
—

 
—

 
—

 
(13.1
)
 
—

 
(13.1
)
Investing activities
—

 
—

 
—

 
147.3

 
—

 
147.3

Net cash provided by discontinued operations
—

 
—

 
—

 
134.2

 
—

 
134.2

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
2.0

 
—

 
2.0

NET INCREASE IN CASH AND CASH EQUIVALENTS
35.2

 
1.7

 
62.4

 
(42.9
)
 
—

 
56.4

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
236.6

 
—

 
22.6

 
171.5

 
—

 
430.7

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
271.8

 
$
1.7

 
$
85.0

 
$
128.6

 
$
—

 
$
487.1





ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2011
(in millions)
 
Ensco plc

 
ENSCO
International Incorporation  

 
Pride
International, Inc.

 
Other
Non-guarantor
Subsidiaries of Ensco

 
Consolidating
Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Net cash provided by (used in)
     operating activities of continuing operations
$
2.0

 
$
(2.6
)
 
$
(59.9
)
 
$
792.3

 
$
—

 
$
731.8

INVESTING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

   Acquisition of Pride International, Inc.,
       net of cash acquired 
—

 
—

 
92.9

 
(2,748.9
)
 
—

 
(2,656.0
)
Additions to property and
  equipment 
—

 
—

 
—

 
(729.0
)
 
—

 
(729.0
)
Other
—

 
(6.1
)
 
—

 
6.9

 
—

 
.8

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

 
(6.1
)
 
92.9

 
(3,471.0
)
 
—

 
(3,384.2
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Proceeds from issuance of senior
  notes
2,462.8

 
—

 
—

 
—

 
—

 
2,462.8

Cash dividends paid
(292.3
)
 
—

 
—

 
—

 
—

 
(292.3
)
Reduction of long-term
  borrowings
—

 
—

 
(181.0
)
 
(32.3
)
 
—

 
(213.3
)
Commercial paper borrowings,
  net
125.0

 
—

 
—

 
—

 
—

 
125.0

Equity issuance costs
(70.5
)
 
—

 
—

 
—

 
—

 
(70.5
)
Proceeds from exercise of share
  options
—

 
39.9

 


 


 


 
39.9

Debt financing costs
(27.1
)
 
(4.7
)
 
—

 
—

 
—

 
(31.8
)
Advances (to) from affiliates
(1,966.7
)
 
(34.5
)
 
170.6

 
1,830.6

 
—

 
—

Other
—

 
—

 
—

 
(15.7
)
 
—

 
(15.7
)
      Net cash provided by (used in)
         financing activities of
  continuing operations
231.2

 
.7

 
(10.4
)
 
1,782.6

 
—

 
2,004.1

DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Operating activities
—

 
(11.1
)
 
—

 
11.5

 
—

 
.4

Investing activities
—

 
—

 
—

 
28.7

 
—

 
28.7

Net cash provided by discontinued operations
—

 
(11.1
)
 
—

 
40.2

 
—

 
29.1

Effect of exchange rate changes
  on cash and cash equivalents
—

 
—

 
—

 
(.8
)
 
—

 
(.8
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
233.2

 
(19.1
)
 
22.6

 
(856.7
)
 
—

 
(620.0
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
3.4

 
19.1

 
—

 
1,028.2

 
—

 
1,050.7

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
236.6

 
$
—

 
$
22.6

 
$
171.5

 
$
—

 
$
430.7


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Year Ended December 31, 2010
(in millions)
 
Ensco plc

 
ENSCO International Incorporation

 
Other Non guarantor Subsidiaries of Ensco  
  
 
    Consolidating     Adjustments

 
Total

OPERATING ACTIVITIES
 

 
 

 
 

 
 

 
 

  Net cash (used in) provided by 
    operating activities of continuing
    operations
$
(6.8
)
 
$
(53.9
)
 
$
867.7

 
$
—

 
$
807.0

INVESTING ACTIVITIES
 

 
 

 
 

 
 

 
 

Additions to property and equipment 
—

 
—

 
(875.3
)
 
—

 
(875.3
)
Other
(1.8
)
 
—

 
3.3

 
—

 
1.5

Net cash used in investing activities of  continuing operations 
(1.8
)
 
—

 
(872.0
)
 
—

 
(873.8
)
FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

Cash dividends paid 
(153.7
)
 
—

 
—

 
—

 
(153.7
)
Reduction of long-term borrowings
—

 
—

 
(17.2
)
 
—

 
(17.2
)
Proceeds from exercise of share options 
—

 
1.4

 
—

 
—

 
1.4

Debt financing costs
—

 
(6.2
)
 
—

 
—

 
(6.2
)
Advances from (to) affiliates
140.9

 
(183.3
)
 
42.4

 
—

 
—

Other
—

 
—

 
(16.9
)
 
—

 
(16.9
)
      Net cash (used in) provided by
        financing activities of continuing
        operations
(12.8
)
 
(188.1
)
 
8.3

 
—

 
(192.6
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
Operating activities
—

 
(16.7
)
 
27.8

 
—

 
11.1

Investing activities
—

 
—

 
158.1

 
—

 
158.1

Net cash (used in) provided by discontinued operations
—

 
(16.7
)
 
185.9

 
—

 
169.2

   Effect of exchange rate changes on cash and
       cash equivalents 
—

 
—

 
(.5
)
 
—

 
(.5
)
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS
(21.4
)
 
(258.7
)
 
189.4

 
—

 
(90.7
)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
24.8

 
277.8

 
838.8

 
—

 
1,141.4

CASH AND CASH EQUIVALENTS, END
OF PERIOD
$
3.4

 
$
19.1

 
$
1,028.2

 
$
—

 
$
1,050.7



Unaudited Quarterly Financial Data (Tables)
Summary Of Unaudited Quarterly Consolidated Income Statement
The following table summarizes our unaudited quarterly consolidated income statement data for the years ended December 31, 2012 and 2011 (in millions, except per share amounts):

2012
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
1,020.6

 
$
1,071.1

 
$
1,123.5

 
$
1,085.5

 
$
4,300.7

Operating expenses


 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
502.2

 
494.0

 
507.3

 
524.5

 
2,028.0

Depreciation
136.0

 
136.3

 
142.4

 
143.9

 
558.6

General and administrative
38.2

 
35.5

 
40.2

 
35.0

 
148.9

Operating income
344.2

 
405.3

 
433.6

 
382.1

 
1,565.2

Other expense, net
(26.7
)
 
(24.7
)
 
(25.5
)
 
(21.7
)
 
(98.6
)
Income from continuing operations before income taxes
317.5

 
380.6

 
408.1

 
360.4

 
1,466.6

Provision for income taxes
37.0

 
43.4

 
46.9

 
117.1

 
244.4

Income from continuing operations
280.5

 
337.2

 
361.2

 
243.3

 
1,222.2

(Loss) income from discontinued operations, net
(13.1
)
 
5.5

 
(15.8
)
 
(22.1
)
 
(45.5
)
Net income
267.4

 
342.7

 
345.4

 
221.2

 
1,176.7

Net income attributable to noncontrolling interests
(2.0
)
 
(1.4
)
 
(1.9
)
 
(1.7
)
 
(7.0
)
Net income attributable to Ensco
$
265.4

 
$
341.3

 
$
343.5

 
$
219.5

 
$
1,169.7

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 
 

Continuing operations
$
1.21

 
$
1.45

 
$
1.55

 
$
1.04

 
$
5.24

Discontinued operations
(0.06
)
 
0.02

 
(0.07
)
 
(0.10
)
 
(0.19
)
 
$
1.15

 
$
1.47

 
$
1.48

 
$
0.94

 
$
5.05

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 
 

Continuing operations
$
1.20

 
$
1.45

 
$
1.55

 
$
1.04

 
$
5.23

Discontinued operations
(0.05
)
 
0.02

 
(0.07
)
 
(0.10
)
 
(0.19
)

$
1.15

 
$
1.47

 
$
1.48

 
$
0.94

 
$
5.04

2011
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
361.5

 
$
561.4

 
$
901.6

 
$
973.2

 
$
2,797.7

Operating expenses
 

 
 

 
 

 


 
 

Contract drilling (exclusive of depreciation)
190.8

 
295.0

 
465.0

 
498.3

 
1,449.1

Depreciation
58.2

 
81.4

 
132.8

 
136.5

 
408.9

General and administrative
30.1

 
47.4

 
40.8

 
40.3

 
158.6

Operating income
82.4

 
137.6

 
263.0

 
298.1

 
781.1

Other income (expense), net
2.3

 
(18.1
)
 
(13.6
)
 
(28.5
)
 
(57.9
)
Income from continuing operations before income taxes
84.7

 
119.5

 
249.4

 
269.6

 
723.2

Provision for income taxes
17.1

 
14.0

 
40.3

 
44.0

 
115.4

Income from continuing operations
67.6

 
105.5

 
209.1

 
225.6

 
607.8

(Loss) income from discontinued operations, net
(2.1
)
 
(1.9
)
 
(3.0
)
 
4.8

 
(2.2
)
Net income
65.5

 
103.6

 
206.1

 
230.4

 
605.6

Net income attributable to noncontrolling interests
(.9
)
 
(1.7
)
 
(1.6
)
 
(1.0
)
 
(5.2
)
Net income attributable to Ensco
$
64.6

 
$
101.9

 
$
204.5

 
$
229.4

 
$
600.4

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 
 

Continuing operations
$
0.46

 
$
0.60

 
$
0.90

 
$
0.97

 
$
3.10

Discontinued operations
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.02

 
(0.01
)
 
$
0.45

 
$
0.59

 
$
0.89

 
$
0.99

 
$
3.09

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 
 

Continuing operations
$
0.46

 
$
0.60

 
$
0.90

 
$
0.97

 
$
3.09

Discontinued operations
(0.01
)
 
(0.01
)
 
(0.02
)
 
0.02

 
(0.01
)
 
$
0.45

 
$
0.59

 
$
0.88

 
$
0.99

 
$
3.08

Description Of The Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
continent
country
service
segments
Dec. 31, 2011
Dec. 31, 2010
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of different countries having drilling contracts spanning
20 
 
 
Number of different continents having drilling contracts
6 
 
 
Net foreign currency exchange gains (losses)
$ (3.5)
$ 16.9 
$ 3.5 
Short-term investments
50.0 
4.5 
 
Impairment charge on ENSCO I
 
 
12.2 
Number of operating segments
3 
 
 
Number of reportable segments
2 
 
 
Number of services
1 
 
 
Deferred mobilization revenue
52.6 
104.3 
 
Deferred revenue
120.4 
37.9 
 
Antidilutive share options excluded from computation of diluted earnings per share
0.4 
0.4 
1.1 
Deferred Mobilization Costs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Other assets
54.5 
82.2 
 
Deferred Regulatory Certification And Compliance Costs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Other assets
$ 14.4 
$ 9.1 
 
Minimum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
15 years 
 
 
Maximum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
35 years 
 
 
Rigs Under Construction [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
74 
 
 
Ultra-Deepwater Drillships [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
9 
 
 
Semisubmersible Rigs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
13 
 
 
Moored Semisubmersible Rigs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
6 
 
 
Jackup Rigs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
46 
 
 
Drilling Rigs And Equipment [Member] |
Minimum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
4 years 
 
 
Drilling Rigs And Equipment [Member] |
Maximum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
35 years 
 
 
Buildings And Improvements [Member] |
Minimum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
2 years 
 
 
Buildings And Improvements [Member] |
Maximum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
30 years 
 
 
Other Equipment, Computer And Communications Hardware And Software [Member] |
Minimum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
2 years 
 
 
Other Equipment, Computer And Communications Hardware And Software [Member] |
Maximum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Estimated useful lives assets, minimum years
6 years 
 
 
Deepwater [Member] |
Minimum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Rigs drilling capacity (in feet)
4,500 
 
 
Midwater [Member] |
Maximum [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Rigs drilling capacity (in feet)
4,499 
 
 
Description Of The Business And Summary Of Significant Accounting Policies (Reconciliation Of Net Income Attributable To Ensco Shares Used In Basic And Diluted EPS Computations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Ensco
$ 219.5 
$ 343.5 
$ 341.3 
$ 265.4 
$ 229.4 
$ 204.5 
$ 101.9 
$ 64.6 
$ 1,169.7 
$ 600.4 
$ 579.5 
Net income allocated to non-vested share awards
 
 
 
 
 
 
 
 
(12.3)
(6.9)
(7.4)
Net income attributable to Ensco shares
 
 
 
 
 
 
 
 
$ 1,157.4 
$ 593.5 
$ 572.1 
Description Of The Business And Summary Of Significant Accounting Policies (Reconciliation Of The Weighted-Average Shares Used In Basic And Diluted Earnings Per Share Computations) (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
Weighted-average shares - basic
229.4 
192.2 
141.0 
Potentially dilutive share options
0.3 
0.4 
0 
Weighted-average shares - diluted
229.7 
192.6 
141.0 
Description Of The Business And Summary Of Significant Accounting Policies (Schedule Of Income From Continuing Operations Attributable To Ensco) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$ 243.3 
$ 361.2 
$ 337.2 
$ 280.5 
$ 225.6 
$ 209.1 
$ 105.5 
$ 67.6 
$ 1,222.2 
$ 607.8 
$ 556.9 
Income from continuing operations attributable to noncontrolling interests
 
 
 
 
 
 
 
 
(7.0)
 
(5.4)
Income from continuing operations attributable to Ensco
 
 
 
 
 
 
 
 
$ 1,215.2 
$ 602.6 
$ 551.5 
Description Of The Business And Summary Of Significant Accounting Policies (Schedule Of Income From Discontinued Operations Attributable To Ensco) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from discontinued operations
$ (22.1)
$ (15.8)
$ 5.5 
$ (13.1)
$ 4.8 
$ (3.0)
$ (1.9)
$ (2.1)
$ (45.5)
$ (2.2)
$ 29.0 
Income from discontinued operations attributable to noncontrolling interests
 
 
 
 
 
 
 
 
0 
0 
(1.0)
(Loss) income from discontinued operations attributable to Ensco
 
 
 
 
 
 
 
 
$ (45.5)
$ (2.2)
$ 28.0 
Acquisition Of Pride International, Inc. (Schedule Of Business Acquisition, Provisional Amounts Recorded For Assets Acquired And Liabilities Assumed) (Details) (USD $)
In Millions, unless otherwise specified
May 31, 2011
Business Acquisition [Line Items]
 
Gross contractual amounts receivable
$ 466.7 
Pride International Inc. [Member] |
Amounts Recognized As Of Merger Date [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
147.0 
Accounts receivable
371.3 1
Other current assets
150.9 
Property and equipment
6,758.8 
Other assets
343.7 
Accounts payable and accrued liabilities and other
539.8 
Debt
2,436.0 
Deferred income tax liabilities
19.0 
Other liabilities
319.8 
Net assets acquired
4,457.1 
Less merger consideration
7,415.9 
Goodwill
2,958.8 
Pride International Inc. [Member] |
Measurement Period Adjustments [Member]
 
Business Acquisition [Line Items]
 
Accounts receivable
38.1 1 2
Other current assets
32.7 2
Property and equipment
(9.4)2
Other assets
27.8 2
Accounts payable and accrued liabilities and other
60.6 2
Deferred income tax liabilities
(0.1)2
Other liabilities
7.7 2
Net assets acquired
21.0 2
Goodwill
(21.0)2
Pride International Inc. [Member] |
Estimated Fair Value [Member]
 
Business Acquisition [Line Items]
 
Cash and cash equivalents
147.0 
Accounts receivable
409.4 1
Other current assets
183.6 
Property and equipment
6,749.4 
Other assets
371.5 
Accounts payable and accrued liabilities and other
600.4 
Debt
2,436.0 
Deferred income tax liabilities
18.9 
Other liabilities
327.5 
Net assets acquired
4,478.1 
Less merger consideration
7,415.9 
Goodwill
$ 2,937.8 
[2] In the second quarter of 2012, we completed our evaluation of the purchase price allocation. As a result, during 2012, we made adjustments to the estimated fair value of certain assets and liabilities with a corresponding net adjustment to goodwill amounting to $21.0 million, which are reflected in the amounts noted above. The measurement period adjustments were recorded to reflect new information obtained about facts and circumstances existing as of the Merger Date and did not result from subsequent intervening events. These adjustments primarily related to inventory, contingencies and income taxes and did not have a material impact on our previously reported financial position or results of operations subsequent to the Merger Date; however, we have retrospectively revised our 2011 consolidated financial statements to reflect these adjustments as if they were recorded as of the Merger Date.
Acquisition Of Pride International, Inc. (Business Acquisition, Pro Forma Information) (Details) (Pride International Inc. [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Pride International Inc. [Member]
 
 
Business Acquisition [Line Items]
 
 
Revenues
$ 3,451.8 1
$ 3,157.2 
Net income
604.8 1
805.9 
Earnings per share - basic (in dollars per share)
$ 2.61 1
$ 3.50 
Earnings per share - diluted (in dollars per share)
$ 2.60 1
$ 3.49 
Merger-related costs
$ 157.6 
 
Fair Value Measurements (Narrative) (Details) (USD $)
Share data in Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2012
Hercules Offshore, Inc. [Member]
Dec. 31, 2011
Hercules Offshore, Inc. [Member]
Dec. 31, 2012
Hercules Offshore, Inc. [Member]
Dec. 31, 2012
Supplemental Executive Retirement Plans [Member]
Dec. 31, 2011
Supplemental Executive Retirement Plans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Change in unrealized gains (losses) included in other income
 
 
$ (400,000)
$ 2,800,000 
$ (300,000)
Common stock received in litigation of bankruptcy claims
 
10.3 
1.4 
 
 
Common stock, shares sold
 
3.0 
 
 
 
Proceeds from sales of HERO common stock
 
13,400,000 
6,100,000 
 
 
Remaining common shares sold
7.3 
 
 
 
 
Net proceeds received from issuance of remaining common shares
$ 31,600,000 
 
 
 
 
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Hercules Offshore, Inc. common stock
 
$ 32.2 
Supplemental executive retirement plan assets
29.8 
25.6 
Derivatives, net
5.2 
 
Total financial assets
35.0 
57.8 
Derivatives, net
 
7.1 
Total financial liabilities
 
7.1 
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Hercules Offshore, Inc. common stock
 
32.2 
Supplemental executive retirement plan assets
29.8 
25.6 
Derivatives, net
0 
 
Total financial assets
29.8 
57.8 
Derivatives, net
 
0 
Total financial liabilities
 
0 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Hercules Offshore, Inc. common stock
 
0 
Supplemental executive retirement plan assets
0 
0 
Derivatives, net
5.2 
 
Total financial assets
5.2 
0 
Derivatives, net
 
7.1 
Total financial liabilities
 
7.1 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Hercules Offshore, Inc. common stock
 
0 
Supplemental executive retirement plan assets
0 
0 
Derivatives, net
0 
 
Total financial assets
0 
0 
Derivatives, net
 
0 
Total financial liabilities
 
$ 0 
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2012
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2012
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2012
Carrying Value [Member]
Dec. 31, 2011
Carrying Value [Member]
Dec. 31, 2012
Carrying Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2011
Carrying Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
Carrying Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2011
Carrying Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
Carrying Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2011
Carrying Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
Carrying Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2011
Carrying Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
Carrying Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2011
Carrying Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
Carrying Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2011
Carrying Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
Carrying Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2011
Carrying Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2012
Carrying Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2011
Carrying Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2012
Carrying Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2011
Carrying Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2011
Estimated Fair Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument
 
 
 
 
 
 
 
 
 
$ 4,845.9 
$ 4,925.1 
$ 1,474.7 
$ 1,472.2 
$ 1,040.6 
$ 1,055.8 
$ 995.1 
$ 993.5 
$ 616.4 
$ 631.7 
$ 383.8 
$ 385.0 
$ 149.0 
$ 149.0 
$ 112.3 
$ 146.7 
$ 38.0 
$ 50.7 
$ 36.0 
$ 40.5 
$ 5,415.8 
$ 5,059.4 
$ 1,715.6 
$ 1,565.8 
$ 1,138.3 
$ 1,042.7 
$ 1,068.9 
$ 1,016.5 
$ 661.7 
$ 615.3 
$ 423.9 
$ 381.9 
$ 193.2 
$ 167.2 
$ 121.6 
$ 156.4 
$ 48.7 
$ 64.0 
$ 43.9 
$ 49.6 
Debt instrument, interest rate, stated percentage
4.70% 
6.875% 
3.25% 
8.50% 
7.875% 
7.20% 
4.33% 
6.36% 
4.65% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument maturity period
2021 
2020 
2016 
2019 
2040 
2027 
2016 
2015 
2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property And Equipment (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 15,737.1 
$ 14,483.4 
Drilling rigs and equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Increase in drilling rigs and equipment
826.8 
 
Property and equipment
13,499.4 
12,672.6 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
89.1 
92.7 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Increase in drilling rigs and equipment
430.5 
 
Property and equipment
2,148.6 
1,718.1 
Work in progress [Member] |
ENSCO 8506 [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
603.9 
 
Work in progress [Member] |
ENSCO DS-6/7/8/9 ultra-deepwater semisubmersible rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
1,100.0 
 
Work in progress [Member] |
Jackup Rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
157.4 
142.7 
Number of rigs
3 
3 
Work in progress [Member] |
ENSCO 8505 and 8506 [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
 
803.4 
Work in progress [Member] |
ENSCO DS-6/7 ultra-deepwater semisubmersible rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
 
$ 487.8 
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 15,737.1 
$ 14,483.4 
Drilling rigs and equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
13,499.4 
12,672.6 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
89.1 
92.7 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 2,148.6 
$ 1,718.1 
Debt (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Senior Notes [Member]
Apr. 26, 2011
Commercial Paper Program [Member]
Dec. 31, 2012
Commercial Paper Program [Member]
Dec. 31, 2011
Commercial Paper Program [Member]
May 31, 2011
Commercial Paper Program [Member]
Dec. 31, 2012
Debentures Due 2027 [Member]
May 31, 2011
Five-Year Credit Facility [Member]
Dec. 31, 2012
Five-Year Credit Facility [Member]
Dec. 31, 2012
Four Year Credit Facility [Member]
Dec. 31, 2012
364-Day Credit Facility [Member]
Dec. 31, 2012
ENSCO 7500 [Member]
Bonds Due 2015 And 2020 [Member]
Dec. 31, 2012
ENSCO 105 [Member]
Bonds Due 2015 And 2020 [Member]
Dec. 31, 2012
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
6.875% Senior notes due 2020 [Member]
Acquired Debt [Member]
Dec. 31, 2012
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
8.50% Senior notes due 2019 [Member]
Acquired Debt [Member]
Dec. 31, 2012
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
7.875% Senior notes due 2040 [Member]
Acquired Debt [Member]
Dec. 31, 2012
4.33% MARAD bonds due 2016 [Member]
Dec. 31, 2012
4.33% MARAD bonds due 2016 [Member]
Acquired Debt [Member]
Dec. 31, 2012
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
3.25% Senior notes due 2016 [Member]
Senior Notes [Member]
Dec. 31, 2012
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
4.70% Senior notes due 2021 [Member]
Senior Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unsecured debt instrument issued
 
 
 
 
$ 700,000,000 
 
 
 
$ 150,000,000 
$ 1,450,000,000 
$ 700,000,000 
$ 700,000,000 
$ 450,000,000 
 
$ 76,500,000 
 
$ 900,000,000 
 
$ 500,000,000 
 
$ 300,000,000 
 
$ 151,500,000 
 
 
 
 
Debt instrument interest rate stated percentage
 
 
 
 
 
 
 
 
7.20% 
 
 
 
 
6.36% 
4.65% 
6.875% 
 
8.50% 
 
7.875% 
 
4.33% 
 
3.25% 
3.25% 
4.70% 
4.70% 
Aggregate amount of unsecured debt instrument
 
 
 
 
 
 
 
1,000,000,000 
 
 
1,700,000,000 
 
 
190,000,000 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
1,500,000,000 
Discount to senior notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,600,000 
 
29,600,000 
Aggregate redemption price of notes
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of semiannual principal installments
 
 
 
 
 
 
 
 
 
 
 
 
 
30 
34 
 
 
 
 
 
 
 
 
 
 
 
 
Semiannual principal installment amount
 
 
 
 
 
 
 
 
 
 
 
 
 
6,300,000 
2,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
Term of credit facility
 
 
 
 
 
 
 
 
 
 
5 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum days of maturity of notes
 
 
 
 
 
364 
 
 
 
 
 
 
364 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper
0 
125,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument maturity term, years
 
 
 
 
 
 
 
 
 
 
 
 
1 
15 
17 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of LIBOR plus margin rate interest
 
 
 
 
 
 
 
 
 
 
1.50% 
 
1.13% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn facility fee
 
 
 
 
 
 
 
 
 
 
0.20% 
 
0.09% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total facility fee commitment
1,450,000,000 
 
 
 
 
 
 
 
 
 
 
 
450,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum percentage of debt to total capitalization ratio
 
 
 
 
 
 
 
 
 
 
50.00% 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of right to increase the commitment
 
 
 
 
 
 
 
 
 
 
 
 
550,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument maturity period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2020 
 
2019 
 
2040 
 
2016 
 
2016 
2016 
2021 
2021 
Weighted-average interest rate
 
 
 
 
 
0.44% 
0.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unamortized premiums
315,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense totaled
(123,600,000)
(95,900,000)
21,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
$ 105,800,000 
$ 80,200,000 
$ 21,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Schedule Of Long-Term Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Debt Instrument [Line Items]
 
 
Long-term debt
$ 4,530.2 
 
Commercial paper
0 
125.0 
Total debt
4,845.9 
5,050.1 
Less current maturities
(47.5)
(172.5)
Total long-term debt
4,798.4 
4,877.6 
4.70% Senior notes due 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
1,474.7 
1,472.2 
Debt instrument interest rate stated percentage
4.70% 
 
Debt instrument maturity period
2021 
 
6.875% Senior notes due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
1,040.6 
1,055.8 
Debt instrument interest rate stated percentage
6.875% 
 
Debt instrument maturity period
2020 
 
3.25% Senior notes due 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
995.1 
993.5 
Debt instrument interest rate stated percentage
3.25% 
 
Debt instrument maturity period
2016 
 
8.50% Senior notes due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
616.4 
631.7 
Debt instrument interest rate stated percentage
8.50% 
 
Debt instrument maturity period
2019 
 
7.875% Senior notes due 2040 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
383.8 
385.0 
Debt instrument interest rate stated percentage
7.875% 
 
Debt instrument maturity period
2040 
 
7.20% Debentures due 2027 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
149.0 
149.0 
Debt instrument interest rate stated percentage
7.20% 
 
Debt instrument maturity period
2027 
 
4.33% MARAD bonds due 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
112.3 
146.7 
Debt instrument interest rate stated percentage
4.33% 
 
Debt instrument maturity period
2016 
 
6.36% MARAD bonds due 2015 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
38.0 
50.7 
Debt instrument interest rate stated percentage
6.36% 
 
Debt instrument maturity period
2015 
 
4.65% MARAD bonds due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
$ 36.0 
$ 40.5 
Debt instrument interest rate stated percentage
4.65% 
 
Debt instrument maturity period
2020 
 
Debt (Aggregate Maturities Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Debt Instruments [Abstract]
 
2013
$ 47.5 
2014
47.5 
2015
47.5 
2016
1,019.7 
2017
4.5 
Thereafter
3,363.5 
Total
$ 4,530.2 
Derivative Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Maximum maturity period for all derivatives
18 months 
 
 
Not Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Net gains on derivatives not designated as hedging instruments
$ 1.5 
$ 0.5 
$ 2.9 
Foreign Currency Derivative [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Net foreign currency derivative asset (liability) included on balance sheet
5.2 
(7.1)
 
Foreign Currency Derivative [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Aggregate cash flow hedges outstanding
102.4 
 
 
British pounds
22.6 
 
 
Australian dollars
13.3 
 
 
Euros
15.9 
 
 
Indonesian rupiah
10.6 
 
 
Swiss francs
15.3 
 
 
Other currencies
24.7 
 
 
Foreign Currency Derivative [Member] |
Cash Flow Hedges [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Aggregate cash flow hedges outstanding
330.5 
 
 
British pounds
144.6 
 
 
Brazilian reais
99.9 
 
 
Singapore dollars
28.3 
 
 
Australian dollars
26.3 
 
 
Euros
21.5 
 
 
Other currencies
$ 9.9 
 
 
Derivative Instruments (Schedule Of Derivatives At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Derivative [Line Items]
 
 
Total fair value of derivative assets
$ 5.7 
$ 0.3 
Total fair value of derivative liabilities
0.5 
7.4 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
5.5 
0.3 
Total fair value of derivative liabilities
0.3 
7.2 
Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
5.0 1
0.2 1
Total fair value of derivative liabilities
0.3 1
7.1 1
Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Non-Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
0.5 2
0.1 2
Total fair value of derivative liabilities
0 2
0.1 2
Not Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
0.2 
0 
Total fair value of derivative liabilities
0.2 
0.2 
Not Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
0.2 1
0 1
Total fair value of derivative liabilities
$ 0.2 1
$ 0.2 1
Derivative Instruments (Gains And Losses On Derivatives Designated As Cash Flow Hedges) (Details) (Designated as Hedging Instrument [Member], Cash Flow Hedges [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
$ 8.7 
$ 0.1 
$ 7.6 
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
0 
5.5 
1.7 
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(0.3)1
0.3 1
0.3 1
Interest Rate Lock Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
0 2
0 2
0 2
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
(0.5)2
(0.5)2
(0.6)2
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
0 1 2
0 1 2
0 1 2
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
8.7 3
0.1 3
7.6 3
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
0.5 3
6.0 3
2.3 3
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
$ (0.3)1 3
$ 0.3 1 3
$ 0.3 1 3
Derivative Instruments (Schedule Of Estimated Amount Of Net Gains Associated With Derivatives) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
Net unrealized gains to be reclassified to contract drilling expense
$ 2.1 
Net realized gains to be reclassified to depreciation expense
0.6 
Net realized (losses) to be reclassified to interest expense
(0.4)
Net gains to be reclassified to earnings
$ 2.3 
Shareholders' Equity (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
bank
Dec. 31, 2009
Stockholders' Equity Note [Abstract]
 
 
Repurchase authorization limit
 
$ 562.4 
Number of investment banks
2 
 
Shareholders' Equity (Schedule Of Activity In Our Various Shareholders' Equity) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Common Stock [Member]
Dec. 31, 2011
Common Stock [Member]
Dec. 31, 2009
Common Stock [Member]
Dec. 31, 2012
Additional Paid-In Capital [Member]
Dec. 31, 2011
Additional Paid-In Capital [Member]
Dec. 31, 2010
Additional Paid-In Capital [Member]
Dec. 31, 2012
Retained Earnings [Member]
Dec. 31, 2011
Retained Earnings [Member]
Dec. 31, 2010
Retained Earnings [Member]
Dec. 31, 2012
AOCI [Member]
Dec. 31, 2011
AOCI [Member]
Dec. 31, 2010
AOCI [Member]
Dec. 31, 2012
Treasury Shares [Member]
Dec. 31, 2011
Treasury Shares [Member]
Dec. 31, 2010
Treasury Shares [Member]
Dec. 31, 2012
Noncontrolling Interest [Member]
Dec. 31, 2011
Noncontrolling Interest [Member]
Dec. 31, 2010
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE, shares
 
 
 
 
 
 
 
 
 
 
 
235.9 
150.1 
150.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
$ 10,884.5 
 
 
 
 
$ 10,884.5 
 
 
$ 23.7 
$ 15.1 
$ 15.1 
$ 5,253.0 
$ 637.1 
$ 602.6 
$ 5,613.1 
$ 5,305.0 
$ 4,879.2 
$ 8.6 
$ 11.1 
$ 5.2 
$ (19.1)
$ (8.8)
$ (2.9)
$ 5.2 
$ 5.5 
$ 7.9 
Net income
219.5 
343.5 
341.3 
265.4 
229.4 
204.5 
101.9 
64.6 
1,169.7 
600.4 
579.5 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
 
 
 
 
 
 
7.0 
5.2 
6.4 
Cash dividends paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(348.1)
(292.3)
(153.7)
 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(6.5)
(5.5)
(8.8)
Shares issued under share-based compensation plans, net, shares
 
 
 
 
 
 
 
 
 
 
 
1.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued under share-based compensation plans, net
 
 
 
 
 
 
 
 
 
 
 
0.2 
 
 
35.3 
39.7 
1.4 
 
 
 
 
 
 
(0.1)
0.2 
0.1 
 
 
 
Shares issued in connection with the Merger, shares
 
 
 
 
 
 
 
 
 
 
 
 
85.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued in connection with the Merger
 
 
 
 
 
 
 
 
 
 
 
 
8.6 
 
 
4,568.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of share options assumed in connection with the Merger
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity issuance and financing costs
 
 
 
 
 
 
 
 
(66.7)
70.5 
0 
 
 
 
66.7 
(70.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit (deficiency) from share-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1.0)
0.5 
(2.2)
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(11.8)
(10.5)
(6.0)
 
 
 
Share-based compensation cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
44.7 
41.9 
35.3 
 
 
 
 
 
 
 
 
 
 
 
 
Net other comprehensive income (loss)
 
 
 
 
 
 
 
 
11.5 
(2.5)
5.9 
 
 
 
 
 
 
 
 
 
11.5 
(2.5)
5.9 
 
 
 
 
 
 
BALANCE, shares
 
 
 
 
 
 
 
 
 
 
 
237.7 
235.9 
150.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE
$ 11,852.1 
 
 
 
$ 10,884.5 
 
 
 
$ 11,852.1 
$ 10,884.5 
 
$ 23.9 
$ 23.7 
$ 15.1 
$ 5,398.7 
$ 5,253.0 
$ 637.1 
$ 6,434.7 
$ 5,613.1 
$ 5,305.0 
$ 20.1 
$ 8.6 
$ 11.1 
$ (31.0)
$ (19.1)
$ (8.8)
$ 5.7 
$ 5.2 
$ 5.5 
Benefit Plans (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2005
Long-Term Incentive Plan (LTIP) [Member]
Dec. 31, 2012
Non-Vested Share Awards [Member]
Dec. 31, 2012
Non-Vested Share Awards [Member]
Maximum [Member]
Dec. 31, 2012
Non-Vested Share Awards [Member]
Minimum [Member]
Dec. 31, 2005
Predecessor Incentive Plan [Member]
Dec. 31, 2012
Share Options Award [Member]
Dec. 31, 2012
Exercisable In Increments Over Four-Year Period [Member]
Dec. 31, 2012
Exercisable In Increments Over Three-Year Period [Member]
Dec. 31, 2012
Performance Awards [Member]
Dec. 31, 2011
Performance Awards [Member]
Dec. 31, 2010
Performance Awards [Member]
Dec. 31, 2012
Savings Plan [Member]
Dec. 31, 2011
Savings Plan [Member]
Dec. 31, 2010
Savings Plan [Member]
Dec. 31, 2012
Savings Plan [Member]
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reserved for issuance as awards
 
 
14,000,000 
 
 
 
 
11,700,000 
 
 
 
 
 
1,000,000 
 
 
 
Share awards, vest rate
 
 
 
 
33.00% 
20.00% 
10.00% 
 
25.00% 
33.00% 
 
 
 
33.00% 
 
 
 
Unrecognized compensation cost on awards
 
 
 
$ 95.2 
 
 
 
$ 1.1 
 
 
$ 10.3 
 
 
 
 
 
 
Recognized compensation cost, weighted-average period, years
 
 
 
3 years 3 months 18 days 
 
 
 
1 year 1 month 6 days 
 
 
1 year 10 months 24 days 
 
 
 
 
 
 
Share options award, outstanding
1,346,000 
2,289,000 
 
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
 
Share option awards, exercisable, increment
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
3 years 
 
 
 
Performance awards, granted, aggregate grant-date fair value
 
 
 
 
 
 
 
 
 
 
7.2 
3.1 
4.3 
 
 
 
 
Performance awards, vested, aggregate fair value
 
 
 
 
 
 
 
 
 
 
5.3 
5.6 
2.4 
 
 
 
 
Recognized compensation expense
 
 
 
 
 
 
 
 
 
 
9.7 
6.7 
9.9 
 
 
 
 
Employee match
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Maximum percentage of eligible employee compensation to be matched by employer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
Total matching contributions
 
 
 
 
 
 
 
 
 
 
 
 
 
14.9 
11.6 
5.0 
 
Profit sharing contribution provisions
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 40.9 
$ 18.1 
$ 16.2 
 
Benefit Plans (Summary Of 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, 2012
Dec. 31, 2011
Dec. 31, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Weighted-average grant-date fair value of non-vested share awards granted (per share)
$ 48.32 
$ 52.50 
$ 35.81 
Total fair value of non-vested share awards vested during the period (in millions)
$ 42.5 
$ 41.0 
$ 22.1 
Benefit Plans (Summary Of Non-Vested Share Award Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Non-vested as of December 31, 2011, Shares
2,376 
 
 
Non-vested Granted, Shares
1,204 
 
 
Non-vested Vested, Shares
(829)
 
 
Non-vested Forfeited, Shares
(260)
 
 
Non-vested as of December 31, 2012, Shares
2,491 
2,376 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
Non-vested as of December 31, 2011, Weighted-Average Grant-Date Fair Value
$ 46.69 
 
 
Non-vested Granted, Weighted-Average Grant-Date Fair Value
$ 48.32 
$ 52.50 
$ 35.81 
Non-vested Vested, Weighted-Average Grant-Date Fair Value
$ 51.10 
 
 
Non-vested Forfeited, Weighted-Average Grant-Date Fair Value
$ 48.66 
 
 
Non-vested as of December 31, 2012, Weighted-Average Grant-Date Fair Value
$ 46.52 
$ 46.69 
 
Benefit Plans (Weighted-Average Assumptions Utilizing The Black-Scholes Model) (Details)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Risk-free interest rate
1.40% 
1.80% 
Expected term (in years)
3 years 8 months 12 days 
4 years 
Expected volatility
50.20% 
53.10% 
Dividend yield
2.60% 
4.10% 
Benefit Plans (Summary Of Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Outstanding as of December 31, 2011, Shares
2,289 
Granted, Shares
0 
Exercised, Shares
(939)
Forfeited, Shares
0 
Expired, Shares
(4)
Outstanding as of December 31, 2012, Shares
1,346 
Exercisable as of December 31, 2012, Shares
1,241 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
 
Outstanding as of December 31, 2011, Weighted-Average Exercise Price
$ 42.78 
Granted, Weighted-Average Exercise Price
$ 0.00 
Exercised, Weighted-Average Exercise Price
$ 38.00 
Forfeited, Weighted-Average Exercise Price
$ 0.00 
Expired, Weighted-Average Exercise Price
$ 52.61 
Outstanding as of December 31, 2012, Weighted-Average Exercise Price
$ 46.05 
Exercisable as of December 31, 2012, Weighted-Average Exercise Price
$ 45.93 
Outstanding as of December 31, 2012, Weighted Average Contractual Term
3 years 2 months 12 days 
Exercisable as of December 31, 2012, Weighted-Average Contractual Term
3 years 
Outstanding as of December 31, 2012, Intrinsic Value
$ 18,240 
Exercisable as of December 31, 2012, Intrinsic Value
$ 17,005 
Benefit Plans (Summary Of Value Of Options Granted And Exercised) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Weighted-average grant-date fair value of options granted (per share)
$ 0.00 
$ 19.05 
$ 11.05 
Intrinsic value of options exercised during the year (in millions)
$ 17.8 
$ 17.2 
$ 0.4 
Benefit Plans (Summary Of Information About Options Outstanding) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Options Outstanding, Number
1,346 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
3 years 2 months 12 days 
Options Outstanding, Weighted-Average Exercise Price
$ 46.05 
Options Exercisable, Number
1,241 
Options Exercisable, Weighted-Average Exercise Price
$ 45.93 
$18.87 - $40.99 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 18.87 
Exercise Prices, upper range limit
$ 40.99 
Options Outstanding, Number
387 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
4 years 7 months 6 days 
Options Outstanding, Weighted-Average Exercise Price
$ 32.90 
Options Exercisable, Number
349 
Options Exercisable, Weighted-Average Exercise Price
$ 32.73 
$41.18 - $50.09 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 41.18 
Exercise Prices, upper range limit
$ 50.09 
Options Outstanding, Number
368 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
3 years 7 months 6 days 
Options Outstanding, Weighted-Average Exercise Price
$ 43.08 
Options Exercisable, Number
368 
Options Exercisable, Weighted-Average Exercise Price
$ 43.08 
$50.28 - $55.34 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 50.28 
Exercise Prices, upper range limit
$ 55.34 
Options Outstanding, Number
295 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
2 years 6 months 
Options Outstanding, Weighted-Average Exercise Price
$ 52.27 
Options Exercisable, Number
228 
Options Exercisable, Weighted-Average Exercise Price
$ 51.52 
$57.38 - $60.74 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 57.38 
Exercise Prices, upper range limit
$ 60.74 
Options Outstanding, Number
296 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
1 year 4 months 24 days 
Options Outstanding, Weighted-Average Exercise Price
$ 60.71 
Options Exercisable, Number
296 
Options Exercisable, Weighted-Average Exercise Price
$ 60.71 
Goodwill and Other Intangible Assets and Liabilities (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Goodwill [Line Items]
 
 
 
Goodwill
$ 3,274,000,000 
$ 3,274,000,000 
 
Drilling contract intangible assets, Gross Carrying Amount
209,000,000 
209,000,000 
209,000,000 
Intangible Assets, Accumulated Amortization [Roll Forward]
 
 
 
Balance, beginning of period
(36,400,000)
0 
 
Amortization
(51,900,000)
(36,400,000)
 
Balance, end of period
(88,300,000)
(36,400,000)
 
Intangible Assets, Net Carrying Amount [Roll Forward]
 
 
 
Balance, beginning of period
172,600,000 
209,000,000 
 
Amortization
(51,900,000)
(36,400,000)
 
Balance, end of period
120,700,000 
172,600,000 
 
Drilling contract intangible liabilities, Gross Carrying Amount
278,000,000 
278,000,000 
278,000,000 
Intangible Liabilities, Accumulated Amortization [Roll Forward]
 
 
 
Balance, beginning of period
(160,000,000)
(92,800,000)
 
Amortization
(67,200,000)
(92,800,000)
 
Balance, end of period
(92,800,000)
0 
 
Intangible Liabilities, Net Carrying Amount [Roll Forward]
 
 
 
Balance, beginning of period
(185,200,000)
(278,000,000)
 
Amortization
(67,200,000)
(92,800,000)
 
Balance, end of period
(118,000,000)
(185,200,000)
 
Finite-Lived Intangible Assets, Net, Amortization Income (Expense), Fiscal Year Maturity [Abstract]
 
 
 
2013
6.6 
 
 
2014
(4.3)
 
 
2015
(4.5)
 
 
2016
(0.8)
 
 
2017
0.3 
 
 
Thereafter
0.0 
 
 
Total
(2.7)
 
 
Floaters [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
3,081,400,000 
 
 
Jackup [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
$ 192,600,000 
 
 
Income Taxes (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended
Dec. 31, 2012
Jun. 30, 2011
drillship
Dec. 31, 2012
jackup
Dec. 31, 2011
Dec. 31, 2010
Income from continuing operations before income taxes in the U.S. countries
 
 
$ 109,300,000 
$ 28,300,000 
$ 90,500,000 
Income from continuing operations before income taxes in the non-U.S. countries
 
 
1,357,300,000 
751,500,000 
563,600,000 
Deferred tax assets related to U.S. foreign tax credits
173,400,000 
 
173,400,000 
92,600,000 
 
Deferred tax assets related to net operating loss carryforwards
87,800,000 
 
87,800,000 
193,100,000 
 
Net operating loss carryforwards
322,900,000 
 
322,900,000 
 
 
Operating loss carryforwards, Not subject to expiration
194,500,000 
 
194,500,000 
 
 
Operating loss carryforwards, Subject to expiration
128,400,000 
 
128,400,000 
 
 
Valuation allowance on NOL carryforwards and FTC
222,900,000 
 
222,900,000 
 
 
Restructuring charges, tax
51,200,000 
 
 
 
 
Consilidated effective income tax rate excluding discrete items
 
 
12.20% 
15.10% 
14.90% 
Minimum percentage threshold for recognition of tax benefits
 
 
50.00% 
 
 
Total unrecognized tax benefits
110,700,000 
 
110,700,000 
53,600,000 
13,700,000 
Amount of unrecognized tax benefits affecting the consolidated effective income tax rate if recognized
107,000,000 
 
107,000,000 
 
 
Amount of accrued interest and penalties included in other liabilities
18,900,000 
 
18,900,000 
22,700,000 
 
Amount of interest and penalties recognized in net tax expense
 
 
2,800,000 
400,000 
1,500,000 
Income tax benefits, inclusive of interest and penalties due to lapses in statute of limitations
28,600,000 
 
28,600,000 
4,200,000 
2,500,000 
Decline in unrecognized tax benefits during next twelve months
4,200,000 
 
4,200,000 
 
 
Accrued interest and penalty assessments related to the decline in unrecognized tax benefits
2,500,000 
 
2,500,000 
 
 
Reasonably possible change in unrecognized tax benefits
3,800,000 
 
3,800,000 
 
 
Number of assets transferred (in drillships or jackups)
 
5 
1 
 
 
Income tax liability from gain on intercompany transfers
3,300,000 
 
3,300,000 
10,300,000 
 
Deferred tax effects of reversing temporary differences from selling subsidiaries
 
 
 
29,600,000 
 
Unamortized deferred charges related to intercompany transfers
 
 
58,300,000 
68,800,000 
 
Amount included in current income taxes for amortization of deferred income taxes related to intercompany transfers
 
 
13,400,000 
14,000,000 
23,200,000 
Deferred tax liability related to temporary difference from transferred drilling rigs
32,200,000 
 
32,200,000 
38,800,000 
 
Tax benefits included in deferred income tax expense related to amortization of deferred reversing temporary differences from intercompany transfers
 
 
4,400,000 
4,600,000 
6,100,000 
Aggregate Indefinitely reinvested undistributed subsidiary earnings.
530,000,000 
 
 
 
 
Undistributed Earnings of Foreign Subsidiaries
$ 2,100,000,000 
 
$ 2,100,000,000 
 
 
Minimum [Member]
 
 
 
 
 
Operating loss carryforwards tax credits expiration year
 
 
2017 
 
 
Net operating loss carryforwards expiration year
 
 
2013 
 
 
Remaining useful life of drilling rigs associated with amortization of deferred income tax expense, minimum years
 
 
15 years 
 
 
Maximum [Member]
 
 
 
 
 
Operating loss carryforwards tax credits expiration year
 
 
2022 
 
 
Net operating loss carryforwards expiration year
 
 
2031 
 
 
Remaining useful life of drilling rigs associated with amortization of deferred income tax expense, minimum years
 
 
35 years 
 
 
Income Taxes (Summary Of Components Of Provision For Income Taxes From Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Current income tax expense, U.S.
 
 
 
 
 
 
 
 
$ 42.8 
$ 40.7 
$ 9.5 
Current income tax expense, Non-U.S.
 
 
 
 
 
 
 
 
183.6 
94.2 
71.0 
Current Income Tax Expense, Total
 
 
 
 
 
 
 
 
226.4 
134.9 
80.5 
Deferred income tax expense (benefit), U.S.
 
 
 
 
 
 
 
 
32.0 
(14.8)
15.2 
Deferred income tax expense (benefit), Non-U.S.
 
 
 
 
 
 
 
 
(14.0)
(4.7)
1.5 
Deferred income tax expense
 
 
 
 
 
 
 
 
18.0 
(19.5)
16.7 
Total provision for income taxes
$ 117.1 
$ 46.9 
$ 43.4 
$ 37.0 
$ 44.0 
$ 40.3 
$ 14.0 
$ 17.1 
$ 244.4 
$ 115.4 
$ 97.2 
Income Taxes (Summary Of Significant Components Of Deferred Income Tax Assets (Liabilities)) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
 
 
Foreign tax credits
$ 173.4 
$ 92.6 
Premium on long-term debt
124.0 
135.7 
Net operating loss carryfowards
87.8 
193.1 
Employee benefits, including share-based compensation
33.4 
33.3 
Deferred revenue
22.7 
32.0 
Other
24.5 
29.1 
Total deferred tax assets
465.8 
515.8 
Valuation allowance
(227.1)
(224.7)
Net deferred tax assets
238.7 
291.1 
Property and equipment
(472.9)
(493.6)
Intercompany transfers of property
(32.2)
(38.8)
Deferred costs
(20.9)
(36.6)
Other
(31.3)
(25.2)
Total deferred tax liabilities
(557.3)
(594.2)
Net deferred tax liability
(318.6)
(303.1)
Net current deferred tax asset
13.8 
10.4 
Net noncurrent deferred tax liability
$ (332.4)
$ (313.5)
Income Taxes (Summary Of Effective Income Tax Rate On Continuing Operations) (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.K. statutory income tax rate
24.50% 
26.50% 
28.00% 
Non-U.K. taxes
(15.50%)
(19.60%)
(18.90%)
Amortization of deferred charges associated with intercompany rig sales
0.60% 
1.00% 
2.60% 
Redomestication related income taxes
3.50% 
0.00% 
0.00% 
Valuation allowance
2.60% 
6.80% 
1.60% 
Net expense (benefit) in connection with resolutions of tax issues and adjustments relating to prior years
1.00% 
0.80% 
(0.50%)
Other
0.00% 
0.40% 
2.10% 
Effective income tax rate
16.70% 
15.90% 
14.90% 
Income Taxes (Summary Of Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
Balance, beginning of year
$ 53.6 
$ 13.7 
Unrecognized tax benefits assumed in the Merger
0 
34.8 
Increases in unrecognized tax benefits as a result of tax positions taken during the current year
60.7 
1.9 
Increases in unrecognized tax benefits as a result of tax positions taken during prior years
21.3 
6.1 
Decreases in unrecognized tax benefits as a result of tax positions taken during prior years
(0.4)
0 
Settlements with taxing authorities
(4.1)
0 
Lapse of applicable statutes of limitations
(20.8)
(2.0)
Impact of foreign currency exchange rates
0.4 
(0.9)
Balance, end of year
$ 110.7 
$ 53.6 
Discontinued Operations (Schedule of Rig Sales) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 34 Months Ended 1 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Dec. 31, 2012
Floaters [Member]
ENSCO 5003 [Member]
Oct. 31, 2012
Jackups [Member]
Pride Hawaii [Member]
Jun. 30, 2012
Jackups [Member]
ENSCO 61 [Member]
May 31, 2012
Jackups [Member]
ENSCO 59 [Member]
Jun. 30, 2011
Jackups [Member]
ENSCO 95 [Member]
Nov. 30, 2010
Jackups [Member]
ENSCO 60 [Member]
Apr. 30, 2010
Jackups [Member]
ENSCO 57 [Member]
Mar. 31, 2010
Jackups [Member]
ENSCO 50 & ENSCO 51 [Member]
Sep. 30, 2012
Other [Member]
ENSCO I [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Proceeds
$ 134.2 
$ 29.1 
$ 169.2 
$ 355.0 1
$ 68.2 1
$ 18.8 1
$ 31.7 1
$ 22.8 1
$ 41.5 1
$ 25.7 1
$ 47.1 1
$ 94.7 1
$ 4.5 1
Net Book Value
298.8 1 2
 
 
298.8 1 2
89.4 1 2
16.8 1 2
19.6 1 2
21.9 1 2
28.8 1 2
20.0 1 2
29.2 1 2
60.8 1 2
12.3 1 2
Pre-tax Gain/(Loss)
 
 
 
$ 56.2 1 3
$ (21.2)1 3
$ 2.0 1 3
$ 12.1 1 3
$ 0.9 1 3
$ 12.7 1 3
$ 5.7 1 3
$ 17.9 1 3
$ 33.9 1 3
$ (7.8)1 3
Discontinued Operations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Net book value of asset held for sale
$ 298.8 1 2
Pride Pennsylvania Rig [Member]
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Net book value of asset held for sale
14.2 
Impairment charge for asset write down
$ 0.5 
Discontinued Operations (Summary Of Income From Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
$ 6.7 
$ 45.0 
$ 35.1 
Operating expenses
 
 
 
 
 
 
 
 
44.3 
44.4 
49.3 
Operating (loss) income before income taxes
 
 
 
 
 
 
 
 
(37.6)
0.6 
(14.2)
Other income (expense)
 
 
 
 
 
 
 
 
1.3 
0.2 
0 
Income tax benefit
 
 
 
 
 
 
 
 
7.3 
(4.8)
4.6 
Gain on disposal of discontinued operations, net
 
 
 
 
 
 
 
 
(16.5)
1.8 
38.6 
DISCONTINUED OPERATIONS, NET
$ (22.1)
$ (15.8)
$ 5.5 
$ (13.1)
$ 4.8 
$ (3.0)
$ (1.9)
$ (2.1)
$ (45.5)
$ (2.2)
$ 29.0 
Commitments And Contingencies (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended
Apr. 30, 2012
Dec. 31, 2012
occurrence
drillship
claim
rigs
plaintiffs
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Mar. 31, 2009
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Rental expenses
 
$ 47,500,000 
$ 31,500,000 
$ 15,900,000 
 
 
2013
 
31,500,000 
 
 
 
 
2014
 
19,300,000 
 
 
 
 
2015
 
9,700,000 
 
 
 
 
2016
 
6,100,000 
 
 
 
 
2017
 
6,100,000 
 
 
 
 
Thereafter
 
43,500,000 
 
 
 
 
Number of drillships under construction
 
3 
 
 
 
 
Number of rigs under construction
 
3 
 
 
 
 
Warranty and other claims expense recognized
 
63,300,000 
 
 
 
 
Distance from original drilling location in miles
 
 
 
 
 
95 
Leg and debris removal costs
19,000,000 
 
 
 
 
 
Number of payments related to leg and debris removal costs
9 
 
 
 
 
 
Payments for leg and debris removal
 
10,000,000 
 
 
 
 
Insurance reimbursements
 
5,800,000 
 
 
 
 
Wreckage and debris removal
 
9,000,000 
16,000,000 
 
 
 
Wreckage and debris removal receivables
 
13,200,000 
19,800,000 
 
 
 
Number of claims
 
3 
 
 
 
 
Civil litigation claim damages for cost of repairs and business interruption due to pipeline rupture
 
 
 
 
26,000,000 
 
Liability insurance self-insured retention per occurrence
 
10,000,000 
 
 
 
 
Annual liability coverage limit for wreckage and debris removal costs
 
500,000,000 
 
 
 
 
Liability insurance self-insured retention
 
15,000,000 
 
 
 
 
Number of occurrences
 
2 
 
 
 
 
Liability insurance self-insured retention for each occurrence thereafter
 
1,000,000 
 
 
 
 
Number of plaintiffs
 
100 
 
 
 
 
Environmental liabilities
 
2,000,000 
 
 
 
 
Brazil [Member]
 
 
 
 
 
 
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Aggregate amount of fine sought by governmental authorities
 
2,000,000 
 
 
 
 
Spain [Member]
 
 
 
 
 
 
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Aggregate amount of pending administrative processing initiated by governmental authority
 
4,000,000 
 
 
 
 
Minimum [Member]
 
 
 
 
 
 
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Damages sought
 
$ 5,000,000 
 
 
 
 
Commitments And Contingencies (Capital Commitments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
 
2013
$ 924.2 
2014
942.1 
Total
$ 1,866.3 
Segment Information (Narrative) (Details)
12 Months Ended
Dec. 31, 2012
contract
Segment Reporting Information [Line Items]
 
Number of drilling management contracts
3 
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
46 
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Number of drillships
6 
Floaters [Member] |
Dynamically Positioned Semisubmersible [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
13 
Floaters [Member] |
Moored Semisubmersible [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
6 
Jackup [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
46 
South Korea [Member] |
Jackup [Member] |
Ultra-Deepwater [Member]
 
Segment Reporting Information [Line Items]
 
Number of drillships
3 
Asia Pacific, Europe and Mediterranean, Middle East and Africa and North and South America [Member] |
Jackup [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
43 
Singapore [Member] |
Jackup [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
3 
Minimum [Member] |
Deepwater [Member]
 
Segment Reporting Information [Line Items]
 
Rigs drilling capacity (in feet)
4,500 
Maximum [Member] |
Midwater [Member]
 
Segment Reporting Information [Line Items]
 
Rigs drilling capacity (in feet)
4,499 
Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 973.2 
$ 901.6 
$ 561.4 
$ 361.5 
$ 4,300.7 
$ 2,797.7 
$ 1,674.2 
Operating expenses - Contract drilling (exclusive of depreciation)
524.5 
507.3 
494.0 
502.2 
498.3 
465.0 
295.0 
190.8 
2,028.0 
1,449.1 
741.8 
Depreciation
143.9 
142.4 
136.3 
136.0 
136.5 
132.8 
81.4 
58.2 
558.6 
408.9 
210.4 
General and administrative
35.0 
40.2 
35.5 
38.2 
40.3 
40.8 
47.4 
30.1 
148.9 
158.6 
86.1 
OPERATING INCOME
382.1 
433.6 
405.3 
344.2 
298.1 
263.0 
137.6 
82.4 
1,565.2 
781.1 
635.9 
Property and equipment, net
13,145.6 
 
 
 
12,421.9 
 
 
 
13,145.6 
12,421.9 
5,049.9 
Capital expenditures
 
 
 
 
 
 
 
 
1,802.2 
729.0 
875.3 
Floaters [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
2,707.8 
1,532.8 
475.2 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
1,225.1 
785.1 
176.1 
Depreciation
 
 
 
 
 
 
 
 
382.3 
235.9 
44.8 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,100.4 
511.8 
254.3 
Property and equipment, net
10,727.6 
 
 
 
9,923.6 
 
 
 
10,727.6 
9,923.6 
2,866.4 
Capital expenditures
 
 
 
 
 
 
 
 
1,575.5 
436.7 
632.5 
Jackup [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,510.1 
1,212.5 
1,199.0 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
741.8 
621.1 
565.7 
Depreciation
 
 
 
 
 
 
 
 
167.4 
168.6 
164.3 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
600.9 
422.8 
469.0 
Property and equipment, net
2,389.8 
 
 
 
2,462.4 
 
 
 
2,389.8 
2,462.4 
2,165.2 
Capital expenditures
 
 
 
 
 
 
 
 
224.0 
278.3 
238.7 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
82.8 
52.4 
0 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
61.1 
42.9 
0 
Depreciation
 
 
 
 
 
 
 
 
0 
0 
0 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
21.7 
9.5 
0 
Property and equipment, net
0 
 
 
 
12.8 
 
 
 
0 
12.8 
14.4 
Capital expenditures
 
 
 
 
 
 
 
 
0 
0 
0 
Operating Segments Total [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
4,300.7 
2,797.7 
1,674.2 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
2,028.0 
1,449.1 
741.8 
Depreciation
 
 
 
 
 
 
 
 
549.7 
404.5 
209.1 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,723.0 
944.1 
723.3 
Property and equipment, net
13,117.4 
 
 
 
12,398.8 
 
 
 
13,117.4 
12,398.8 
5,046.0 
Capital expenditures
 
 
 
 
 
 
 
 
1,799.5 
715.0 
871.2 
Reconciling Items [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
0 
0 
0 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
0 
0 
0 
Depreciation
 
 
 
 
 
 
 
 
8.9 
4.4 
1.3 
General and administrative
 
 
 
 
 
 
 
 
148.9 
158.6 
86.1 
OPERATING INCOME
 
 
 
 
 
 
 
 
(157.8)
(163.0)
(87.4)
Property and equipment, net
28.2 
 
 
 
23.1 
 
 
 
28.2 
23.1 
3.9 
Capital expenditures
 
 
 
 
 
 
 
 
$ 2.7 
$ 14.0 
$ 4.1 
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details)
12 Months Ended
Dec. 31, 2012
contract
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
74 1
Number of drilling management contracts
3 
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
28 
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
46 
North & South America (Excluding Brazil) [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
22 1
North & South America (Excluding Brazil) [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
8 
North & South America (Excluding Brazil) [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
14 
Brazil [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
10 1
Brazil [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
10 
Brazil [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
0 
Europe & Mediterranean [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
9 1
Europe & Mediterranean [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
1 
Europe & Mediterranean [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
8 
Middle East & Africa [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
14 1
Middle East & Africa [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
4 
Middle East & Africa [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
10 
Asia & Pacific Rim [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
13 1
Asia & Pacific Rim [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
2 
Asia & Pacific Rim [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
11 
Asia & Pacific Rim (Under Construction) [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
6 1
Asia & Pacific Rim (Under Construction) [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
3 
Asia & Pacific Rim (Under Construction) [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
3 
Segment Information (Schedule Of Revenues And Long-Lived Assets By Geographical Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 973.2 
$ 901.6 
$ 561.4 
$ 361.5 
$ 4,300.7 
$ 2,797.7 
$ 1,674.2 
Long-lived Assets
13,145.6 
 
 
 
12,421.9 
 
 
 
13,145.6 
12,421.9 
5,049.9 
Geographic Areas [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
4,300.7 
2,797.7 
1,674.2 
Long-lived Assets
13,145.6 
 
 
 
12,421.9 
 
 
 
13,145.6 
12,421.9 
5,049.9 
Geographic Areas [Member] |
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,291.3 
753.8 
421.3 
Long-lived Assets
4,525.9 
 
 
 
3,450.6 
 
 
 
4,525.9 
3,450.6 
1,993.3 
Geographic Areas [Member] |
Brazil [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,093.2 
575.6 
0 
Long-lived Assets
2,911.3 
 
 
 
3,101.8 
 
 
 
2,911.3 
3,101.8 
0 
Geographic Areas [Member] |
Angola [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
431.7 
243.7 
0 
Long-lived Assets
2,147.2 
 
 
 
1,347.9 
 
 
 
2,147.2 
1,347.9 
0 
Geographic Areas [Member] |
Australia [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
136.4 
61.2 
225.3 
Long-lived Assets
345.1 
 
 
 
350.6 
 
 
 
345.1 
350.6 
194.9 
Geographic Areas [Member] |
United Kingdom [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
314.1 
240.4 
219.0 
Long-lived Assets
436.8 
 
 
 
398.9 
 
 
 
436.8 
398.9 
429.2 
Geographic Areas [Member] |
Mexico [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
124.6 
148.3 
179.8 
Long-lived Assets
189.1 
 
 
 
206.3 
 
 
 
189.1 
206.3 
259.3 
Geographic Areas [Member] |
Singapore [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
0 
0 
0 
Long-lived Assets
367.4 
 
 
 
1,082.3 
 
 
 
367.4 
1,082.3 
1,235.6 
Geographic Areas [Member] |
Other countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
909.4 
774.7 
628.8 
Long-lived Assets
$ 2,222.8 
 
 
 
$ 2,483.5 
 
 
 
$ 2,222.8 
$ 2,483.5 
$ 937.6 
Supplemental Financial Information (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Capitalized interest
$ 105.8 
$ 80.2 
$ 21.3 
Capital expenditure accruals
112.5 
305.8 
39.7 
Sales Revenue, Services, Net [Member] |
Customer Concentration Risk [Member] |
Floaters [Member]
 
 
 
Number of customers providing revenue
1 
1 
 
Revenues
1,026.3 
456.6 
 
Percentage of consolidated revenues
24.00% 
16.00% 
 
Sales Revenue, Services, Net [Member] |
Customer Concentration Risk [Member] |
Floater and Jackup [Member]
 
 
 
Number of customers providing revenue
 
 
2 
Revenues
 
 
421.4 
Percentage of consolidated revenues
 
 
25.00% 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
U.S. Gulf of Mexico [Member]
 
 
 
Revenues
1,300.0 
 
 
Percentage of consolidated revenues
30.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Brazil [Member]
 
 
 
Revenues
1,100.0 
 
 
Percentage of consolidated revenues
25.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Angola [Member]
 
 
 
Revenues
$ 431.7 
 
 
Percentage of consolidated revenues
10.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Floaters [Member] |
U.S. Gulf of Mexico [Member]
 
 
 
Percentage of consolidated revenues
73.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Floaters [Member] |
Angola [Member]
 
 
 
Percentage of consolidated revenues
95.00% 
 
 
Supplemental Financial Information (Accounts Receivable, Net) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
$ 830.6 
$ 866.8 
Allowance for doubtful accounts
(19.2)
(15.1)
Accounts receivable, net
811.4 
851.7 
Trade [Member]
 
 
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
812.4 
818.2 
Other [Member]
 
 
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
$ 18.2 
$ 48.6 
Supplemental Financial Information (Other Current Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Supplemental Financial Information [Abstract]
 
 
Inventory
$ 207.8 
$ 201.4 
Prepaid taxes
62.2 
64.9 
Short-term investments
50.0 
4.5 
Deferred mobilization costs
33.7 
43.8 
Prepaid expenses
20.3 
22.3 
Deferred tax assets
14.6 
9.8 
Assets held for sale
14.2 
0 
Marketable securities
0 
32.2 
Other
22.6 
20.0 
Other current assets
$ 425.4 
$ 398.9 
Supplemental Financial Information (Other Assets, Net) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Supplemental Financial Information [Abstract]
 
 
Intangible assets
$ 143.3 
$ 197.3 
Unbilled reimbursable receivables
77.1 
119.4 
Prepaid taxes on intercompany transfers of property
58.3 
68.8 
Warranty and Other Claim Receivables
30.6 
0 
Supplemental executive retirement plan assets
29.8 
25.6 
Deferred mobilization costs
20.8 
38.4 
Deferred tax assets
19.3 
25.9 
Wreckage and debris removal receivables
13.2 
19.8 
Other
29.4 
26.4 
Other assets, net
$ 421.8 
$ 521.6 
Supplemental Financial Information (Accrued Liabilities And Other) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Supplemental Financial Information [Abstract]
 
 
Personnel costs
$ 231.1 
$ 159.9 
Deferred revenue
146.2 
111.3 
Taxes
86.9 
74.0 
Accrued interest
67.9 
69.4 
Wreckage and debris removal
9.0 
16.0 
Intangible liabilities
0 
43.4 
Other
43.3 
41.7 
Accrued liabilities and other
$ 584.4 
$ 515.7 
Supplemental Financial Information (Other Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Supplemental Financial Information [Abstract]
 
 
Deferred revenue
$ 224.5 
$ 124.4 
Intangible liabilities
118.0 
177.8 
Unrecognized tax benefits (inclusive of interest and penalties)
129.6 
75.5 
Supplemental executive retirement plan liabilities
33.3 
30.1 
Other
68.0 
56.8 
Other liabilities
$ 573.4 
$ 464.6 
Guarantee Of Registered Securities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Guarantor Obligations [Line Items]
 
Senior notes aggregate outstanding principal balance
$ 1,700.0 
8.50% Senior Notes Due 2019 [Member]
 
Guarantor Obligations [Line Items]
 
Senior note, maturity year
2019 
Debt instrument interest rate stated percentage
8.50% 
6.875% Senior notes due 2020 [Member]
 
Guarantor Obligations [Line Items]
 
Senior note, maturity year
2020 
Debt instrument interest rate stated percentage
6.875% 
7.875% Senior Notes Due 2040 [Member]
 
Guarantor Obligations [Line Items]
 
Senior note, maturity year
2040 
Debt instrument interest rate stated percentage
7.875% 
7.20% Debentures due 2027 [Member]
 
Guarantor Obligations [Line Items]
 
Senior note, maturity year
2027 
Debt instrument interest rate stated percentage
7.20% 
Senior notes aggregate outstanding principal balance
$ 150.0 
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 973.2 
$ 901.6 
$ 561.4 
$ 361.5 
$ 4,300.7 
$ 2,797.7 
$ 1,674.2 
Contract drilling (exclusive of depreciation)
524.5 
507.3 
494.0 
502.2 
498.3 
465.0 
295.0 
190.8 
2,028.0 
1,449.1 
741.8 
Depreciation
143.9 
142.4 
136.3 
136.0 
136.5 
132.8 
81.4 
58.2 
558.6 
408.9 
210.4 
General and administrative
35.0 
40.2 
35.5 
38.2 
40.3 
40.8 
47.4 
30.1 
148.9 
158.6 
86.1 
OPERATING INCOME
382.1 
433.6 
405.3 
344.2 
298.1 
263.0 
137.6 
82.4 
1,565.2 
781.1 
635.9 
OTHER (EXPENSE) INCOME, NET
(21.7)
(25.5)
(24.7)
(26.7)
(28.5)
(13.6)
(18.1)
2.3 
(98.6)
(57.9)
18.2 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
360.4 
408.1 
380.6 
317.5 
269.6 
249.4 
119.5 
84.7 
1,466.6 
723.2 
654.1 
INCOME TAX PROVISION
117.1 
46.9 
43.4 
37.0 
44.0 
40.3 
14.0 
17.1 
244.4 
115.4 
97.2 
DISCONTINUED OPERATIONS, NET
(22.1)
(15.8)
5.5 
(13.1)
4.8 
(3.0)
(1.9)
(2.1)
(45.5)
(2.2)
29.0 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
0 
0 
0 
NET INCOME
221.2 
345.4 
342.7 
267.4 
230.4 
206.1 
103.6 
65.5 
1,176.7 
605.6 
585.9 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(1.7)
(1.9)
(1.4)
(2.0)
(1.0)
(1.6)
(1.7)
(0.9)
(7.0)
(5.2)
(6.4)
NET INCOME ATTRIBUTABLE TO ENSCO
219.5 
343.5 
341.3 
265.4 
229.4 
204.5 
101.9 
64.6 
1,169.7 
600.4 
579.5 
Ensco Plc [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
44.0 
0 
0 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
51.2 
46.9 
29.0 
Depreciation
 
 
 
 
 
 
 
 
0.4 
0.4 
0.2 
General and administrative
 
 
 
 
 
 
 
 
63.8 
52.2 
55.1 
OPERATING INCOME
 
 
 
 
 
 
 
 
(71.4)
(99.5)
(84.3)
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(41.8)
32.1 
55.6 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(113.2)
(67.4)
(28.7)
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
0 
0 
1.3 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
0 
   
0 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
1,282.9 
667.8 
609.5 
NET INCOME
 
 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
ENSCO International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
147.6 
70.0 
53.4 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
147.6 
70.0 
53.4 
Depreciation
 
 
 
 
 
 
 
 
3.5 
1.8 
1.0 
General and administrative
 
 
 
 
 
 
 
 
0.4 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
(3.9)
(1.8)
(1.0)
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(7.0)
0.4 
3.8 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(10.9)
(1.4)
2.8 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
68.8 
38.5 
43.4 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
0 
(11.1)
(16.7)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
335.9 
271.5 
137.7 
NET INCOME
 
 
 
 
 
 
 
 
256.2 
220.5 
80.4 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
256.2 
220.5 
80.4 
Pride International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
0 
0 
 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
0 
0 
 
Depreciation
 
 
 
 
 
 
 
 
0 
0 
 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
0 
0 
 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(50.0)
(22.7)
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(50.0)
(22.7)
 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
0 
1.5 
 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
0 
   
 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
239.2 
143.9 
 
NET INCOME
 
 
 
 
 
 
 
 
189.2 
119.7 
 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
189.2 
119.7 
 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
4,429.2 
2,869.5 
1,725.9 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
2,149.3 
1,474.0 
764.5 
Depreciation
 
 
 
 
 
 
 
 
554.7 
406.7 
209.2 
General and administrative
 
 
 
 
 
 
 
 
84.7 
106.4 
31.0 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,640.5 
882.4 
721.2 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
0.2 
(67.7)
(41.2)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
1,640.7 
814.7 
680.0 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
175.6 
75.4 
52.5 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
(45.5)
8.9 
45.7 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
0 
0 
0 
NET INCOME
 
 
 
 
 
 
 
 
1,419.6 
748.2 
673.2 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(7.0)
(5.2)
(6.4)
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,412.6 
743.0 
666.8 
Consolidating Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
(320.1)
(141.8)
(105.1)
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
(320.1)
(141.8)
(105.1)
Depreciation
 
 
 
 
 
 
 
 
0 
0 
0 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
OPERATING INCOME
 
 
 
 
 
 
 
 
0 
0 
0 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
0 
0 
0 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
0 
0 
0 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
0 
0 
0 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
0 
   
   
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
(1,858.0)
(1,083.2)
(747.2)
NET INCOME
 
 
 
 
 
 
 
 
(1,858.0)
(1,083.2)
(747.2)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ (1,858.0)
$ (1,083.2)
$ (747.2)
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$ 221.2 
$ 345.4 
$ 342.7 
$ 267.4 
$ 230.4 
$ 206.1 
$ 103.6 
$ 65.5 
$ 1,176.7 
$ 605.6 
$ 585.9 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
8.7 
0.1 
7.6 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0 
(5.5)
(1.7)
Other
 
 
 
 
 
 
 
 
2.8 
2.9 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
11.5 
(2.5)
5.9 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,188.2 
603.1 
591.8 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(7.0)
(5.2)
(6.4)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,181.2 
597.9 
585.4 
Ensco Plc [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
0 
0 
0 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0 
0 
0 
Other
 
 
 
 
 
 
 
 
0 
0 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
0 
0 
0 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,169.7 
600.4 
579.5 
ENSCO International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
256.2 
220.5 
80.4 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
4.0 
(7.5)
1.2 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0.2 
0.2 
0.2 
Other
 
 
 
 
 
 
 
 
0 
0 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
4.2 
(7.3)
1.4 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
260.4 
213.2 
81.8 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
260.4 
213.2 
81.8 
Pride International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
189.2 
119.7 
 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
0 
0 
 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0 
0 
 
Other
 
 
 
 
 
 
 
 
0 
0 
 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
0 
0 
 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
189.2 
119.7 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
189.2 
119.7 
 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
1,419.6 
748.2 
673.2 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
4.7 
7.6 
6.4 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
(0.2)
(5.7)
(1.9)
Other
 
 
 
 
 
 
 
 
2.8 
2.9 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
7.3 
4.8 
4.5 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,426.9 
753.0 
677.7 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(7.0)
(5.2)
(6.4)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,419.9 
747.8 
671.3 
Consolidating Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
(1,858.0)
(1,083.2)
(747.2)
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
0 
0 
0 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
0 
0 
0 
Other
 
 
 
 
 
 
 
 
0 
0 
0 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
0 
0 
0 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
(1,858.0)
(1,083.2)
(747.2)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
0 
0 
0 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ (1,858.0)
$ (1,083.2)
$ (747.2)
Guarantee Of Registered Securities (Condensed Consolidating Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
$ 487.1 
$ 430.7 
$ 1,050.7 
$ 1,141.4 
Accounts receivable
811.4 
851.7 
 
 
Accounts receivable from affiliates
0 
0 
 
 
Other
425.4 
398.9 
 
 
Total current assets
1,723.9 
1,681.3 
 
 
PROPERTY AND EQUIPMENT, AT COST
15,737.1 
14,483.4 
 
 
Less accumulated depreciation
2,591.5 
2,061.5 
 
 
Property and equipment, net
13,145.6 
12,421.9 
5,049.9 
 
GOODWILL
3,274.0 
3,274.0 
 
 
DUE FROM AFFILIATES
0 
0 
 
 
INVESTMENTS IN AFFILIATES
0 
0 
 
 
OTHER ASSETS, NET
421.8 
521.6 
 
 
TOTAL ASSETS
18,565.3 
17,898.8 
 
 
Accounts payable and accrued liabilities
942.2 
1,160.1 
 
 
Accounts payable to affiliates
0 
0 
 
 
Short-term debt
 
125.0 
 
 
Current maturities of long-term debt
47.5 
47.5 
 
 
Total current liabilities
989.7 
1,332.6 
 
 
DUE TO AFFILIATES
0 
0 
 
 
LONG-TERM DEBT
4,798.4 
4,877.6 
 
 
DEFERRED INCOME TAXES
351.7 
339.5 
 
 
OTHER LIABILITIES
573.4 
464.6 
 
 
ENSCO SHAREHOLDERS' EQUITY
11,846.4 
10,879.3 
 
 
NONCONTROLLING INTERESTS
5.7 
5.2 
 
 
Total equity
11,852.1 
10,884.5 
 
 
Total liabilities and shareholders' equity
18,565.3 
17,898.8 
 
 
Ensco Plc [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
271.8 
236.6 
3.4 
24.8 
Accounts receivable
0 
0 
 
 
Accounts receivable from affiliates
1,294.5 
1,268.4 
 
 
Other
2.8 
2.8 
 
 
Total current assets
1,569.1 
1,507.8 
 
 
PROPERTY AND EQUIPMENT, AT COST
2.1 
1.8 
 
 
Less accumulated depreciation
1.1 
0.7 
 
 
Property and equipment, net
1.0 
1.1 
 
 
GOODWILL
0 
0 
 
 
DUE FROM AFFILIATES
3,483.5 
2,002.3 
 
 
INVESTMENTS IN AFFILIATES
13,469.3 
12,041.9 
 
 
OTHER ASSETS, NET
11.3 
13.9 
 
 
TOTAL ASSETS
18,534.2 
15,567.0 
 
 
Accounts payable and accrued liabilities
31.0 
30.4 
 
 
Accounts payable to affiliates
2,364.8 
575.1 
 
 
Short-term debt
 
125.0 
 
 
Current maturities of long-term debt
0 
0 
 
 
Total current liabilities
2,395.8 
730.5 
 
 
DUE TO AFFILIATES
1,816.7 
2,191.7 
 
 
LONG-TERM DEBT
2,469.6 
2,465.7 
 
 
DEFERRED INCOME TAXES
0 
0 
 
 
OTHER LIABILITIES
0 
0 
 
 
ENSCO SHAREHOLDERS' EQUITY
11,852.1 
10,179.1 
 
 
NONCONTROLLING INTERESTS
0 
0 
 
 
Total equity
11,852.1 
10,179.1 
 
 
Total liabilities and shareholders' equity
18,534.2 
15,567.0 
 
 
ENSCO International Inc. [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
1.7 
0 
19.1 
277.8 
Accounts receivable
0.2 
0.3 
 
 
Accounts receivable from affiliates
226.5 
89.8 
 
 
Other
24.9 
35.2 
 
 
Total current assets
253.3 
125.3 
 
 
PROPERTY AND EQUIPMENT, AT COST
30.2 
30.6 
 
 
Less accumulated depreciation
23.5 
23.8 
 
 
Property and equipment, net
6.7 
6.8 
 
 
GOODWILL
0 
0 
 
 
DUE FROM AFFILIATES
3,594.7 
2,486.9 
 
 
INVESTMENTS IN AFFILIATES
2,693.8 
2,966.0 
 
 
OTHER ASSETS, NET
67.4 
83.4 
 
 
TOTAL ASSETS
6,615.9 
5,668.4 
 
 
Accounts payable and accrued liabilities
28.1 
20.0 
 
 
Accounts payable to affiliates
136.9 
606.6 
 
 
Short-term debt
 
0 
 
 
Current maturities of long-term debt
0 
0 
 
 
Total current liabilities
165.0 
626.6 
 
 
DUE TO AFFILIATES
2,054.7 
1,058.2 
 
 
LONG-TERM DEBT
149.0 
149.0 
 
 
DEFERRED INCOME TAXES
335.1 
326.8 
 
 
OTHER LIABILITIES
0 
5.2 
 
 
ENSCO SHAREHOLDERS' EQUITY
3,912.1 
3,502.6 
 
 
NONCONTROLLING INTERESTS
0 
0 
 
 
Total equity
3,912.1 
3,502.6 
 
 
Total liabilities and shareholders' equity
6,615.9 
5,668.4 
 
 
Pride International Inc. [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
85.0 
22.6 
0 
 
Accounts receivable
0 
5.2 
 
 
Accounts receivable from affiliates
0 
278.2 
 
 
Other
0 
46.2 
 
 
Total current assets
85.0 
352.2 
 
 
PROPERTY AND EQUIPMENT, AT COST
0 
0 
 
 
Less accumulated depreciation
0 
0 
 
 
Property and equipment, net
0 
0 
 
 
GOODWILL
0 
0 
 
 
DUE FROM AFFILIATES
1,628.4 
313.5 
 
 
INVESTMENTS IN AFFILIATES
3,824.8 
4,802.6 
 
 
OTHER ASSETS, NET
0 
9.8 
 
 
TOTAL ASSETS
5,538.2 
5,478.1 
 
 
Accounts payable and accrued liabilities
34.1 
27.4 
 
 
Accounts payable to affiliates
0 
85.2 
 
 
Short-term debt
 
0 
 
 
Current maturities of long-term debt
0 
0 
 
 
Total current liabilities
34.1 
112.6 
 
 
DUE TO AFFILIATES
877.5 
401.3 
 
 
LONG-TERM DEBT
2,040.8 
2,072.5 
 
 
DEFERRED INCOME TAXES
0 
0 
 
 
OTHER LIABILITIES
10.8 
18.7 
 
 
ENSCO SHAREHOLDERS' EQUITY
2,575.0 
2,873.0 
 
 
NONCONTROLLING INTERESTS
0 
0 
 
 
Total equity
2,575.0 
2,873.0 
 
 
Total liabilities and shareholders' equity
5,538.2 
5,478.1 
 
 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
128.6 
171.5 
1,028.2 
838.8 
Accounts receivable
811.2 
846.2 
 
 
Accounts receivable from affiliates
2,375.1 
1,194.5 
 
 
Other
397.7 
314.7 
 
 
Total current assets
3,712.6 
2,526.9 
 
 
PROPERTY AND EQUIPMENT, AT COST
15,704.8 
14,451.0 
 
 
Less accumulated depreciation
2,566.9 
2,037.0 
 
 
Property and equipment, net
13,137.9 
12,414.0 
 
 
GOODWILL
3,274.0 
3,274.0 
 
 
DUE FROM AFFILIATES
4,748.9 
3,638.7 
 
 
INVESTMENTS IN AFFILIATES
0 
0 
 
 
OTHER ASSETS, NET
343.1 
414.5 
 
 
TOTAL ASSETS
25,216.5 
22,268.1 
 
 
Accounts payable and accrued liabilities
849.0 
1,082.3 
 
 
Accounts payable to affiliates
1,394.4 
1,564.0 
 
 
Short-term debt
 
0 
 
 
Current maturities of long-term debt
47.5 
47.5 
 
 
Total current liabilities
2,290.9 
2,693.8 
 
 
DUE TO AFFILIATES
8,706.6 
4,790.2 
 
 
LONG-TERM DEBT
139.0 
190.4 
 
 
DEFERRED INCOME TAXES
16.6 
12.7 
 
 
OTHER LIABILITIES
562.6 
440.7 
 
 
ENSCO SHAREHOLDERS' EQUITY
13,495.1 
14,135.1 
 
 
NONCONTROLLING INTERESTS
5.7 
5.2 
 
 
Total equity
13,500.8 
14,140.3 
 
 
Total liabilities and shareholders' equity
25,216.5 
22,268.1 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable
0 
0 
 
 
Accounts receivable from affiliates
(3,896.1)
(2,830.9)
 
 
Other
0 
0 
 
 
Total current assets
(3,896.1)
(2,830.9)
 
 
PROPERTY AND EQUIPMENT, AT COST
0 
0 
 
 
Less accumulated depreciation
0 
0 
 
 
Property and equipment, net
0 
0 
 
 
GOODWILL
0 
0 
 
 
DUE FROM AFFILIATES
(13,455.5)
(8,441.4)
 
 
INVESTMENTS IN AFFILIATES
(19,987.9)
(19,810.5)
 
 
OTHER ASSETS, NET
0 
0 
 
 
TOTAL ASSETS
(37,339.5)
(31,082.8)
 
 
Accounts payable and accrued liabilities
0 
0 
 
 
Accounts payable to affiliates
(3,896.1)
(2,830.9)
 
 
Short-term debt
 
0 
 
 
Current maturities of long-term debt
0 
0 
 
 
Total current liabilities
(3,896.1)
(2,830.9)
 
 
DUE TO AFFILIATES
(13,455.5)
(8,441.4)
 
 
LONG-TERM DEBT
0 
0 
 
 
DEFERRED INCOME TAXES
0 
0 
 
 
OTHER LIABILITIES
0 
0 
 
 
ENSCO SHAREHOLDERS' EQUITY
(19,987.9)
(19,810.5)
 
 
NONCONTROLLING INTERESTS
0 
0 
 
 
Total equity
(19,987.9)
(19,810.5)
 
 
Total liabilities and shareholders' equity
$ (37,339.5)
$ (31,082.8)
 
 
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 34 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
$ 2,200.2 
$ 731.8 
$ 807.0 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
0 
(2,656.0)
0 
 
Additions to property and equipment
(1,802.2)
(729.0)
(875.3)
 
Other
(42.3)
0.8 
1.5 
 
Net cash used in investing activities of continuing operations
(1,844.5)
(3,384.2)
(873.8)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
0 
2,462.8 
0 
 
Cash dividends paid
(348.1)
(292.3)
(153.7)
 
Reduction of long-term borrowings
(47.5)
(213.3)
(17.2)
 
Commercial paper borrowings, net
(125.0)
125.0 
0 
 
Equity financing costs
66.7 
(70.5)
0 
 
Proceeds from exercise of share options
35.8 
39.9 
1.4 
 
Debt financing costs
0 
(31.8)
(6.2)
 
Advances (to) from affiliates
0 
0 
0 
 
Other
(17.4)
(15.7)
(16.9)
 
Net cash (used in) provided by financing activities of continuing operations
(435.5)
2,004.1 
(192.6)
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
(13.1)
0.4 
11.1 
 
Investing activities
147.3 
28.7 
158.1 
 
Net cash provided by discontinued operations
134.2 
29.1 
169.2 
355.0 1
Effect of exchange rate changes on cash and cash equivalents
2.0 
(0.8)
(0.5)
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
56.4 
(620.0)
(90.7)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
430.7 
1,050.7 
1,141.4 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
487.1 
430.7 
1,050.7 
487.1 
Ensco Plc [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(71.6)
2.0 
(6.8)
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
0 
 
 
Additions to property and equipment
0 
0 
0 
 
Other
(0.3)
0 
(1.8)
 
Net cash used in investing activities of continuing operations
(0.3)
0 
(1.8)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
2,462.8 
 
 
Cash dividends paid
(348.1)
(292.3)
(153.7)
 
Reduction of long-term borrowings
0 
0 
0 
 
Commercial paper borrowings, net
(125.0)
125.0 
 
 
Equity financing costs
66.7 
(70.5)
 
 
Proceeds from exercise of share options
23.9 
0 
0 
 
Debt financing costs
 
(27.1)
0 
 
Advances (to) from affiliates
501.2 
(1,966.7)
140.9 
 
Other
(11.6)
0 
0 
 
Net cash (used in) provided by financing activities of continuing operations
107.1 
231.2 
(12.8)
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0 
0 
0 
 
Investing activities
0 
0 
0 
 
Net cash provided by discontinued operations
0 
0 
0 
 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
35.2 
233.2 
(21.4)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
236.6 
3.4 
24.8 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
271.8 
236.6 
3.4 
271.8 
ENSCO International Inc. [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(38.2)
(2.6)
(53.9)
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
0 
 
 
Additions to property and equipment
0 
0 
0 
 
Other
0.4 
(6.1)
0 
 
Net cash used in investing activities of continuing operations
0.4 
(6.1)
0 
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
0 
 
 
Cash dividends paid
0 
0 
0 
 
Reduction of long-term borrowings
0 
0 
0 
 
Commercial paper borrowings, net
0 
0 
 
 
Equity financing costs
0 
0 
 
 
Proceeds from exercise of share options
11.9 
39.9 
1.4 
 
Debt financing costs
 
(4.7)
(6.2)
 
Advances (to) from affiliates
27.6 
(34.5)
(183.3)
 
Other
0 
0 
0 
 
Net cash (used in) provided by financing activities of continuing operations
39.5 
0.7 
(188.1)
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0 
(11.1)
(16.7)
 
Investing activities
0 
0 
0 
 
Net cash provided by discontinued operations
0 
(11.1)
(16.7)
 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1.7 
(19.1)
(258.7)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
0 
19.1 
277.8 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
1.7 
0 
19.1 
1.7 
Pride International Inc. [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(21.6)
(59.9)
 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
92.9 
 
 
Additions to property and equipment
0 
0 
 
 
Other
0 
0 
 
 
Net cash used in investing activities of continuing operations
0 
92.9 
 
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
0 
 
 
Cash dividends paid
0 
0 
 
 
Reduction of long-term borrowings
0 
(181.0)
 
 
Commercial paper borrowings, net
0 
0 
 
 
Equity financing costs
0 
0 
 
 
Proceeds from exercise of share options
0 
   
 
 
Debt financing costs
 
0 
 
 
Advances (to) from affiliates
84.0 
170.6 
 
 
Other
0 
0 
 
 
Net cash (used in) provided by financing activities of continuing operations
84.0 
(10.4)
 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0 
0 
 
 
Investing activities
0 
0 
 
 
Net cash provided by discontinued operations
0 
0 
 
 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
 
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
62.4 
22.6 
 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
22.6 
0 
 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
85.0 
22.6 
 
85.0 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
2,331.6 
792.3 
867.7 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
(2,748.9)
 
 
Additions to property and equipment
(1,802.2)
(729.0)
(875.3)
 
Other
(42.4)
6.9 
3.3 
 
Net cash used in investing activities of continuing operations
(1,844.6)
(3,471.0)
(872.0)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
0 
 
 
Cash dividends paid
0 
0 
0 
 
Reduction of long-term borrowings
(47.5)
(32.3)
(17.2)
 
Commercial paper borrowings, net
0 
0 
 
 
Equity financing costs
0 
0 
 
 
Proceeds from exercise of share options
0 
   
0 
 
Debt financing costs
 
0 
0 
 
Advances (to) from affiliates
(612.8)
1,830.6 
42.4 
 
Other
(5.8)
(15.7)
(16.9)
 
Net cash (used in) provided by financing activities of continuing operations
(666.1)
1,782.6 
8.3 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
(13.1)
11.5 
27.8 
 
Investing activities
147.3 
28.7 
158.1 
 
Net cash provided by discontinued operations
134.2 
40.2 
185.9 
 
Effect of exchange rate changes on cash and cash equivalents
2.0 
(0.8)
(0.5)
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(42.9)
(856.7)
189.4 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
171.5 
1,028.2 
838.8 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
128.6 
171.5 
1,028.2 
128.6 
Consolidating Adjustments [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
0 
0 
0 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
0 
 
 
Additions to property and equipment
0 
0 
0 
 
Other
0 
0 
0 
 
Net cash used in investing activities of continuing operations
0 
0 
0 
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
0 
 
 
Cash dividends paid
0 
0 
0 
 
Reduction of long-term borrowings
0 
0 
0 
 
Commercial paper borrowings, net
0 
0 
 
 
Equity financing costs
0 
0 
 
 
Proceeds from exercise of share options
0 
   
0 
 
Debt financing costs
 
0 
0 
 
Advances (to) from affiliates
0 
0 
0 
 
Other
0 
0 
0 
 
Net cash (used in) provided by financing activities of continuing operations
0 
0 
0 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0 
0 
0 
 
Investing activities
0 
0 
0 
 
Net cash provided by discontinued operations
0 
0 
0 
 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
0 
0 
0 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
0 
0 
0 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 0 
$ 0 
$ 0 
$ 0 
Unaudited Quarterly Financial Data (Summary Of Unaudited Quarterly Consolidated Income Statement) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Sep. 30, 2011
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Quarterly Financial Data [Abstract]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 973.2 
$ 901.6 
$ 561.4 
$ 361.5 
$ 4,300.7 
$ 2,797.7 
$ 1,674.2 
Contract drilling (exclusive of depreciation)
524.5 
507.3 
494.0 
502.2 
498.3 
465.0 
295.0 
190.8 
2,028.0 
1,449.1 
741.8 
Depreciation
143.9 
142.4 
136.3 
136.0 
136.5 
132.8 
81.4 
58.2 
558.6 
408.9 
210.4 
General and administrative
35.0 
40.2 
35.5 
38.2 
40.3 
40.8 
47.4 
30.1 
148.9 
158.6 
86.1 
OPERATING INCOME
382.1 
433.6 
405.3 
344.2 
298.1 
263.0 
137.6 
82.4 
1,565.2 
781.1 
635.9 
Other income (expense), net
(21.7)
(25.5)
(24.7)
(26.7)
(28.5)
(13.6)
(18.1)
2.3 
(98.6)
(57.9)
18.2 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
360.4 
408.1 
380.6 
317.5 
269.6 
249.4 
119.5 
84.7 
1,466.6 
723.2 
654.1 
Provision for income taxes
117.1 
46.9 
43.4 
37.0 
44.0 
40.3 
14.0 
17.1 
244.4 
115.4 
97.2 
Income from continuing operations
243.3 
361.2 
337.2 
280.5 
225.6 
209.1 
105.5 
67.6 
1,222.2 
607.8 
556.9 
DISCONTINUED OPERATIONS, NET
(22.1)
(15.8)
5.5 
(13.1)
4.8 
(3.0)
(1.9)
(2.1)
(45.5)
(2.2)
29.0 
NET INCOME
221.2 
345.4 
342.7 
267.4 
230.4 
206.1 
103.6 
65.5 
1,176.7 
605.6 
585.9 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(1.7)
(1.9)
(1.4)
(2.0)
(1.0)
(1.6)
(1.7)
(0.9)
(7.0)
(5.2)
(6.4)
NET INCOME ATTRIBUTABLE TO ENSCO
$ 219.5 
$ 343.5 
$ 341.3 
$ 265.4 
$ 229.4 
$ 204.5 
$ 101.9 
$ 64.6 
$ 1,169.7 
$ 600.4 
$ 579.5 
EARNINGS PER SHARE - BASIC
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.04 
$ 1.55 
$ 1.45 
$ 1.21 
$ 0.97 
$ 0.90 
$ 0.60 
$ 0.46 
$ 5.24 
$ 3.10 
$ 3.86 
Discontinued operations
$ (0.10)
$ (0.07)
$ 0.02 
$ (0.06)
$ 0.02 
$ (0.01)
$ (0.01)
$ (0.01)
$ (0.19)
$ (0.01)
$ 0.20 
Total earnings per share - basic
$ 0.94 
$ 1.48 
$ 1.47 
$ 1.15 
$ 0.99 
$ 0.89 
$ 0.59 
$ 0.45 
$ 5.05 
$ 3.09 
$ 4.06 
EARNINGS PER SHARE - DILUTED
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.04 
$ 1.55 
$ 1.45 
$ 1.20 
$ 0.97 
$ 0.90 
$ 0.60 
$ 0.46 
$ 5.23 
$ 3.09 
$ 3.86 
Discontinued operations
$ (0.10)
$ (0.07)
$ 0.02 
$ (0.05)
$ 0.02 
$ (0.02)
$ (0.01)
$ (0.01)
$ (0.19)
$ (0.01)
$ 0.20 
Total earnings per share - diluted
$ 0.94 
$ 1.48 
$ 1.47 
$ 1.15 
$ 0.99 
$ 0.88 
$ 0.59 
$ 0.45 
$ 5.04 
$ 3.08 
$ 4.06