ENSCO PLC, 10-K filed on 2/26/2014
Annual Report
Document And Entity Information (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Feb. 10, 2014
Jun. 30, 2013
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Entity Registrant Name
Ensco plc 
 
 
Entity Central Index Key
0000314808 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Document Fiscal Year Focus
2013 
 
 
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
 
 
$ 11,730,723 
Entity Common Shares, Shares Outstanding
 
233,568,357 
 
Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement [Abstract]
 
 
 
OPERATING REVENUES
$ 4,919.8 
$ 4,300.7 
$ 2,797.7 
OPERATING EXPENSES
 
 
 
Contract drilling (exclusive of depreciation)
2,402.5 
2,028.0 
1,449.1 
Depreciation
611.9 
558.6 
408.9 
General and administrative
146.8 
148.9 
158.6 
Total operating expenses
3,161.2 
2,735.5 
2,016.6 
OPERATING INCOME
1,758.6 
1,565.2 
781.1 
OTHER INCOME (EXPENSE)
 
 
 
Interest income
16.6 
22.8 
17.2 
Interest expense, net
(158.8)
(123.6)
(95.9)
Other, net
42.1 
2.2 
20.8 
Other income (expense), net
(100.1)
(98.6)
(57.9)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
1,658.5 
1,466.6 
723.2 
PROVISION FOR INCOME TAXES
 
 
 
Current income tax expense
219.4 
226.4 
134.9 
Deferred income tax expense (benefit)
6.2 
18.0 
(19.5)
Total provision for income taxes
225.6 
244.4 
115.4 
INCOME FROM CONTINUING OPERATIONS
1,432.9 
1,222.2 
607.8 
DISCONTINUED OPERATIONS, NET
(5.0)
(45.5)
(2.2)
NET INCOME
1,427.9 
1,176.7 
605.6 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(9.7)
(7.0)
(5.2)
NET INCOME ATTRIBUTABLE TO ENSCO
1,418.2 
1,169.7 
600.4 
EARNINGS PER SHARE - BASIC
 
 
 
Continuing operations
$ 6.10 
$ 5.24 
$ 3.10 
Discontinued operations
$ (0.02)
$ (0.19)
$ (0.01)
Total earnings per share - basic
$ 6.08 
$ 5.05 
$ 3.09 
EARNINGS PER SHARE - DILUTED
 
 
 
Continuing operations
$ 6.09 
$ 5.23 
$ 3.09 
Discontinued operations
$ (0.02)
$ (0.19)
$ (0.01)
Total earnings per share - diluted
$ 6.07 
$ 5.04 
$ 3.08 
NET INCOME ATTRIBUTABLE TO ENSCO SHARES - BASIC AND DILUTED
$ 1,403.1 
$ 1,157.4 
$ 593.5 
WEIGHTED-AVERAGE SHARES OUTSTANDING
 
 
 
Basic
230.9 
229.4 
192.2 
Diluted
231.1 
229.7 
192.6 
CASH DIVIDENDS PER SHARE
$ 2.25 
$ 1.5 
$ 1.40 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$ 364.0 
$ 381.4 
$ 362.6 
$ 319.9 
$ 221.2 
$ 345.4 
$ 342.7 
$ 267.4 
$ 1,427.9 
$ 1,176.7 
$ 605.6 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
(5.8)
8.7 
0.1 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
2.0 
(5.5)
Other
 
 
 
 
 
 
 
 
1.9 
2.8 
2.9 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
(1.9)
11.5 
(2.5)
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,426.0 
1,188.2 
603.1 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(9.7)
(7.0)
(5.2)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ 1,416.3 
$ 1,181.2 
$ 597.9 
Consolidated Balance Sheets (USD $)
Dec. 31, 2013
Dec. 31, 2012
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 165,600,000 
$ 487,100,000 
Accounts receivable, net
855,700,000 
811,400,000 
Other
513,900,000 
425,400,000 
Total current assets
1,535,200,000 
1,723,900,000 
PROPERTY AND EQUIPMENT, AT COST
17,498,500,000 
15,737,100,000 
Less accumulated depreciation
3,187,500,000 
2,591,500,000 
Property and equipment, net
14,311,000,000 
13,145,600,000 
GOODWILL
3,274,000,000 
3,274,000,000 
OTHER ASSETS, NET
352,700,000 
421,800,000 
TOTAL ASSETS
19,472,900,000 
18,565,300,000 
CURRENT LIABILITIES
 
 
Accounts payable - trade
341,100,000 
357,800,000 
Accrued liabilities and other
658,700,000 
584,400,000 
Short-term debt
 
Current maturities of long-term debt
47,500,000 
47,500,000 
Total current liabilities
1,047,300,000 
989,700,000 
LONG-TERM DEBT
4,718,900,000 
4,798,400,000 
DEFERRED INCOME TAXES
362,100,000 
351,700,000 
OTHER LIABILITIES
545,700,000 
573,400,000 
COMMITMENTS AND CONTINGENCIES
   
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Additional paid-in capital
5,467,200,000 
5,398,700,000 
Retained earnings
7,327,300,000 
6,434,700,000 
Accumulated other comprehensive income
18,200,000 
20,100,000 
Treasury shares, at cost, 6.0 million shares and 5.3 million shares
(45,200,000)
(31,000,000)
Total Ensco shareholders' equity
12,791,600,000 
11,846,400,000 
NONCONTROLLING INTERESTS
7,300,000 
5,700,000 
Total equity
12,798,900,000 
11,852,100,000 
Total liabilities and shareholders' equity
19,472,900,000 
18,565,300,000 
Class A Ordinary Shares, U.S. [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
24,000,000 
23,800,000 
Common Class B, Par Value In GBP [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
$ 100,000 
$ 100,000 
Consolidated Balance Sheets (Parenthetical)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Class A Ordinary Shares, U.S. [Member]
USD ($)
Dec. 31, 2012
Class A Ordinary Shares, U.S. [Member]
USD ($)
Dec. 31, 2013
Common Class B, Par Value In GBP [Member]
GBP (£)
Dec. 31, 2012
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 
450,000,000.0 
50,000 
50,000 
Common shares, shares issued
 
 
239,500,000 
237,700,000 
50,000 
50,000 
Treasury shares, shares held
6,000,000 
5,300,000 
 
 
 
 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
OPERATING ACTIVITIES
 
 
 
Net income
$ 1,427.9 
$ 1,176.7 
$ 605.6 
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
 
 
 
Discontinued operations, net
5.0 
45.5 
2.2 
Depreciation expense
611.9 
558.6 
408.9 
Settlement of warranty or other claims
(11.0)
(57.9)
Share-based compensation expense
50.3 
53.2 
47.7 
Amortization of intangibles and other, net
(22.5)
(27.1)
(39.7)
Deferred income tax expense (benefit)
6.2 
18.0 
(19.5)
Other
15.0 
6.0 
(0.9)
Changes in operating assets and liabilities
(102.5)
427.2 
(272.5)
Net cash provided by operating activities of continuing operations
1,980.3 
2,200.2 
731.8 
INVESTING ACTIVITIES
 
 
 
Additions to property and equipment
(1,779.2)
(1,802.2)
(729.0)
Acquisition of Pride International, Inc., net of cash acquired
(2,656.0)
Purchases of short-term investments
(50.0)
(90.0)
(4.5)
Maturities of short-term investments
50.0 
44.5 
Advance payment received on sale of assets
33.0 
Other
6.0 
3.2 
5.3 
Net cash used in investing activities of continuing operations
(1,740.2)
(1,844.5)
(3,384.2)
FINANCING ACTIVITIES
 
 
 
Cash dividends paid
(525.6)
(348.1)
(292.3)
Reduction of long-term borrowings
(47.5)
(47.5)
(213.3)
Proceeds from exercise of share options
22.3 
35.8 
39.9 
Debt financing costs
(4.6)
(31.8)
Commercial paper borrowings, net
(125.0)
125.0 
Equity financing costs
66.7 
(70.5)
Proceeds from issuance of senior notes
2,462.8 
Other
(21.7)
(17.4)
(15.7)
Net cash (used in) provided by financing activities of continuing operations
(577.1)
(435.5)
2,004.1 
DISCONTINUED OPERATIONS
 
 
 
Operating activities
0.2 
(13.1)
0.4 
Investing activities
15.5 
147.3 
28.7 
Net cash provided by discontinued operations
15.7 
134.2 
29.1 
Effect of exchange rate changes on cash and cash equivalents
(0.2)
2.0 
(0.8)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(321.5)
56.4 
(620.0)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
487.1 
430.7 
1,050.7 
CASH AND CASH EQUIVALENTS, END OF YEAR
$ 165.6 
$ 487.1 
$ 430.7 
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 six rigs under construction, spanning most of the strategic, high-growth markets around the globe. Our rig fleet includes ten drillships, 13 dynamically positioned semisubmersible rigs, six moored semisubmersible rigs and 45 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.  

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 offshore basin around the world. The markets in which we operate include the U.S. Gulf of Mexico, Mexico, Brazil, the Mediterranean, the North Sea, the Middle East, West Africa, Australia and Southeast Asia.

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

During 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, 2013 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 gains of $6.4 million, net foreign currency exchange losses of $3.5 million and net foreign currency exchange gains of $16.9 million for the years ended December 31, 2013, 2012 and 2011, 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 at 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 sheets and totaled $50.0 million as of December 31, 2013 and 2012. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our consolidated statements of cash flows for the years ended December 31, 2013, 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.
    
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
Our business consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which 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.

Based on a qualitative assessment performed as of December 31, 2013, we concluded it was more-likely-than-not that the fair value of our reporting units exceeded their carrying amount, and there was no impairment of goodwill. However, if the market value of our shares declines for a prolonged period, and if management's judgments and assumptions regarding future industry conditions and operations diminish, it is reasonably possible that our expectations of future cash flows may decline and ultimately result in a goodwill impairment for our Floaters reporting unit. 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 prior to commencement of drilling operations 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 $66.6 million and $54.5 million as of December 31, 2013 and 2012, respectively. Deferred mobilization revenue was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $76.8 million and $52.6 million as of December 31, 2013 and 2012, 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 $273.6 million and $301.9 million as of December 31, 2013 and 2012, 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 $18.3 million and $14.4 million as of December 31, 2013 and 2012, 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 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. Derivatives subject to legally enforceable master netting agreements are not offset on our consolidated balance sheet. 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 do not offset deferred tax assets and deferred tax liabilities attributable to different tax paying jurisdictions.
    
We operate in certain 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 is calculated 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, 2013 (in millions):

 
2013
 
2012
 
2011
Net income attributable to Ensco

$1,418.2

 

$1,169.7

 

$600.4

Net income allocated to non-vested share awards
(15.1
)
 
(12.3
)
 
(6.9
)
Net income attributable to Ensco shares

$1,403.1

 

$1,157.4

 

$593.5



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, 2013 (in millions):

 
2013
 
2012
 
2011
Weighted-average shares - basic
230.9

 
229.4

 
192.2

Potentially dilutive shares
.2

 
.3

 
.4

Weighted-average shares - diluted
231.1

 
229.7

 
192.6



Antidilutive share options totaling 300,000 for the year ended December 31, 2013 and 400,000 for the years ended December 31, 2012 and 2011 were excluded from the computation of diluted EPS.
 
Noncontrolling Interests

Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries. Noncontrolling interests are classified as equity on our consolidated balance sheet and net income attributable to noncontrolling interests is presented separately in our consolidated statement of income. 

Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):

 
2013
 
2012
 
2011
Income from continuing operations
$
1,432.9

 
$
1,222.2

 
$
607.8

Income from continuing operations attributable to noncontrolling interests
(9.7
)
 
(7.0
)
 
(5.2
)
Income from continuing operations attributable to Ensco
$
1,423.2

 
$
1,215.2

 
$
602.6


    
Loss from discontinued operations, net, for each of the years in the three-year period ended December 31, 2013 was attributable to Ensco.
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"), pursuant to which Pride became an indirect, wholly-owned subsidiary of Ensco plc.

The Merger  added drillships to our asset base, 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.  

Pro Forma Impact of the Merger
 
The following unaudited supplemental pro forma results for the year ended December 31, 2011 includes pro forma results for the period prior to the closing date of May 31, 2011 and actual results for the period from May 31, 2011 through December 31, 2011. 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 reductions 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. The pro forma results should not be considered indicative of future results. 
(In millions, except per share amounts) 
 
 
2011*

Revenues
$
3,451.8

Net income
604.8

Earnings per share - basic
2.61

Earnings per share - diluted
2.60


* 
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 net financial assets measured at fair value on a recurring basis as of December 31, 2013 and 2012 (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, 2013
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
37.7

 
$

 
$

 
$
37.7

Derivatives, net

 
1.8

 

 
1.8

Total financial assets
$
37.7

 
$
1.8

 
$

 
$
39.5

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



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, 2013 and 2012.  The fair value measurements of assets held in the SERP were based on quoted market prices. Net unrealized gains of $6.2 million and $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 statements of income for the years ended December 31, 2013, 2012 and 2011, respectively.
 
Derivatives

Our derivatives were measured at fair value on a recurring basis using Level 2 inputs as of December 31, 2013 and 2012.  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 are generally observable for similar assets or liabilities at commonly quoted intervals.

Other Financial Instruments

The carrying values and estimated fair values of our debt instruments as of December 31, 2013 and 2012 were as follows (in millions):
 
 
December 31, 2013
 
December 31, 2012
 
 
Carrying
Value
 
Estimated
  Fair
Value
 
Carrying
Value
 
Estimated
  Fair
Value
 
 
 
 
 
 
 
 
 
4.70% Senior notes due 2021
 
$
1,477.2

 
$
1,596.9

 
$
1,474.7

 
$
1,715.6

6.875% Senior notes due 2020
 
1,024.8

 
1,086.7

 
1,040.6

 
1,138.3

3.25% Senior notes due 2016
 
996.5

 
1,045.8

 
995.1

 
1,068.9

8.50% Senior notes due 2019
 
600.5

 
635.8

 
616.4

 
661.7

7.875% Senior notes due 2040
 
382.6

 
410.5

 
383.8

 
423.9

7.20% Debentures due 2027
 
149.1

 
178.6

 
149.0

 
193.2

4.33% MARAD bonds, including current maturities, due 2016
 
78.9

 
79.7

 
112.3

 
121.6

6.36% MARAD bonds, including current maturities, due 2015
 
25.3

 
27.1

 
38.0

 
48.7

4.65% MARAD bonds, including current maturities, due 2020
 
31.5

 
35.2

 
36.0

 
43.9

Total 
 
$
4,766.4

 
$
5,096.3

 
$
4,845.9

 
$
5,415.8


 
The estimated fair values of our senior notes and debentures were determined using quoted market prices. The estimated fair values of our U.S. Maritime Administration ("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, 2013 and 2012.
Property And Equipment
Property And Equipment
PROPERTY AND EQUIPMENT

Property and equipment as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Drilling rigs and equipment
 
$
15,839.0

 
$
13,499.4

Other
 
101.0

 
89.1

Work in progress
 
1,558.5

 
2,148.6

 
 
$
17,498.5

 
$
15,737.1


 
Drilling rigs and equipment increased $2.3 billion primarily due to ENSCO 8506, ENSCO DS-6 and ENSCO DS-7, which were placed into service during 2013, and capital upgrades to the existing rig fleet.
 
Work in progress decreased $590.1 million during 2013 primarily due to the aforementioned rigs that were placed into service, partially offset by the construction of four ultra-premium harsh environment jackup rigs, three ultra-deepwater drillships and one premium jackup rig. Work in progress as of December 31, 2013 primarily consisted of $627.2 million related to the construction of the ENSCO 120 Series ultra-premium harsh environment jackup rigs, $513.4 million related to the construction of ENSCO DS-8, ENSCO DS-9 and ENSCO DS-10 ultra-deepwater drillships, $43.7 million related to the construction of ENSCO 110 premium jackup rig and costs associated with various modification and enhancement projects.

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 the ENSCO 120 Series ultra-premium 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, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
4.70% Senior notes due 2021
 
$
1,477.2

 
$
1,474.7

6.875% Senior notes due 2020
 
1,024.8

 
1,040.6

3.25% Senior notes due 2016
 
996.5

 
995.1

8.50% Senior notes due 2019
 
600.5

 
616.4

7.875% Senior notes due 2040
 
382.6

 
383.8

7.20% Debentures due 2027
 
149.1

 
149.0

4.33% MARAD bonds due 2016
 
78.9

 
112.3

6.36% MARAD bonds due 2015
 
25.3

 
38.0

4.65% MARAD bonds due 2020
 
31.5

 
36.0

Total debt
 
4,766.4

 
4,845.9

Less current maturities
 
(47.5
)
 
(47.5
)
Total long-term debt
 
$
4,718.9

 
$
4,798.4



Senior Notes
 
During 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, and a supplemental indenture between us and the Trustee, dated March 17, 2011. 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 Notes and Acquired 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 indentures governing both the Notes and Acquired Notes contain customary events of default, including failure to pay principal or interest on the Notes and Acquired Notes when due, among others. The indentures governing both the Notes and Acquired Notes also contain 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 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%.

Commercial Paper
 
We participate in 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 $1.0 billion.  Amounts issued under the commercial paper program are supported by the available and unused committed capacity under our Five-Year Credit Facility. As a result, amounts issued under the commercial paper program will be limited by the amount of our available and unused committed capacity under our Five-Year Credit Facility. The proceeds of such financings may 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 0.35% and 0.44% during 2013 and 2012, 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, 2013 and 2012.
 
Revolving Credit Facility
 
On May 7, 2013, we entered into the Fourth Amended and Restated Credit Agreement (the "Five-Year Credit Facility"), among Ensco, a subsidiary of Ensco, Citibank, N.A., as Administrative Agent, DNB Bank ASA, as Syndication Agent, and a syndicate of banks party thereto. The Five-Year Credit Facility provides for a $2.0 billion senior unsecured revolving credit facility to be used for general corporate purposes with a five-year term expiring on May 7, 2018. The Five-Year Credit Facility amends and restates our $1.45 billion credit agreement which was scheduled to mature on May 12, 2016. Advances under the Five-Year Credit Facility bear interest at Base Rate or LIBOR plus an applicable margin rate (currently 0.125% per annum for Base Rate advances and 1.125% per annum for LIBOR advances) depending on our credit rating. Amounts repaid may be re-borrowed during the term. We are required to pay a quarterly undrawn facility fee (currently 0.125% per annum) on the total $2.0 billion commitment, which is also based on our credit rating. In addition to other customary restrictive covenants, the Five-Year Credit Facility requires us to maintain a total debt to total capitalization ratio less than or equal to 50%. 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 $2.5 billion. We had no amounts outstanding under the Five-Year Credit Facility as of December 31, 2013 and 2012.

In connection with the amendment of our Five-Year Credit Facility, we terminated our $450.0 million 364-day revolving unsecured credit facility dated as of May 12, 2011. We had no amounts outstanding under the 364-Day Credit Facility as of December 31, 2012.

Maturities

The aggregate maturities of our debt, excluding net unamortized premiums of $283.7 million, as of December 31, 2013 were as follows (in millions):
2014
 
$
47.5

2015
 
47.5

2016
 
1,019.7

2017
 
4.5

2018
 
4.5

Thereafter
 
3,359.0

Total
 
$
4,482.7


    
Interest expense totaled $158.8 million, $123.6 million and $95.9 million for the years ended December 31, 2013, 2012 and 2011, respectively, which was net of interest amounts capitalized of $67.7 million, $105.8 million and $80.2 million 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. 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 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. See "Note 14 - Supplemental Financial Information" for additional information on the mitigation of credit risk relating to counterparties of our derivatives. We do not enter into derivatives for trading or other speculative purposes.
 
All derivatives were recorded on our consolidated balance sheets at fair value. Derivatives subject to legally enforceable master netting agreements were not offset on our consolidated balance sheets. 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, 2013 and 2012, our consolidated balance sheets included net foreign currency derivative assets of $1.8 million and $5.2 million, respectively.  All of our derivatives mature during the next 18 months.  Derivatives recorded at fair value on our consolidated balance sheets as of December 31, 2013 and 2012 consisted of the following (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
2013
 
2012
 
2013
 
2012
Derivatives Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
9.1

 
$
5.0

 
$
9.8

 
$
.3

Foreign currency forward contracts - non-current(2)
1.2

 
.5

 
.6

 

 
10.3

 
5.5

 
10.4

 
.3

Derivatives not Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
2.5

 
.2

 
.6

 
.2

 
2.5

 
.2

 
.6

 
.2

Total
$
12.8

 
$
5.7

 
$
11.0

 
$
.5


(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, 2013, we had cash flow hedges outstanding to exchange an aggregate $376.1 million for various foreign currencies, including $175.1 million for British pounds, $110.8 million for Brazilian reais, $35.3 million for Singapore dollars, $23.6 million for Australian dollars, $22.3 million for Euros and $9.0 million for other currencies.

Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our consolidated statements of income and comprehensive income for each of the years in the three-year period ended December 31, 2013 were as follows (in millions):
 
(Loss) Gain Recognized in Other Comprehensive
Income ("OCI")
on Derivatives
  (Effective Portion)  
 
(Loss) Gain
Reclassified from
 AOCI into Income
(Effective Portion)(1)
 
(Loss) Gain Recognized
in Income on
Derivatives (Ineffective
Portion and Amount
Excluded from
Effectiveness Testing)(2)
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Interest rate lock contracts(3) 
$

 
$

 
$

 
$
(.4
)
 
$
(.5
)
 
$
(.5
)
 
$

 
$

 
$

Foreign currency forward contracts(4)
(5.8
)
 
8.7

 
.1

 
(1.6
)
 
.5

 
6.0

 
(.3
)
 
(.3
)
 
.3

Total
$
(5.8
)
 
$
8.7

 
$
.1

 
$
(2.0
)
 
$

 
$
5.5

 
$
(.3
)
 
$
(.3
)
 
$
.3

 
(1)
Changes in the fair value of cash flow hedges are recorded in 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 transaction.

(2) 
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.

(3) 
Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net in our consolidated statements of income.

(4) 
During the year ended December 31, 2013, $2.5 million of losses were reclassified from AOCI into contract drilling expense and $900,000 of gains were reclassified from AOCI into depreciation expense in our consolidated statement 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, 2013, we held derivatives not designated as hedging instruments to exchange an aggregate $208.9 million for various foreign currencies, including $97.9 million for Euros, $25.8 million for British pounds, $21.4 million for Swiss francs, $20.8 million for Brazilian reais, $16.5 million for Australian dollars, $13.9 million for Indonesian Rupiah and $12.6 million for other currencies.

Net gains of $3.6 million, $1.5 million and $500,000 associated with our derivatives not designated as hedging instruments were included in other, net, in our consolidated statements of income for the years ended December 31, 2013, 2012 and 2011, respectively.

As of December 31, 2013, the estimated amount of net losses associated with derivatives, net of tax, that will be reclassified to earnings during the next 12 months was as follows (in millions):
Net unrealized (losses) to be reclassified to contract drilling expense
 
$
(1.7
)
Net realized gains to be reclassified to depreciation expense
 
.9

Net realized (losses) to be reclassified to interest expense
 
(.4
)
Net (losses) to be reclassified to earnings
 
$
(1.2
)
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, 2013 was as follows (in millions):
 
 Shares 
 
 
Par Value 
 
 
Additional
Paid-in
Capital

 
Retained
Earnings

 
AOCI 
 
 
Treasury
Shares  

 
Noncontrolling
Interest

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

Net income

 

 

 
1,418.2

 

 

 
9.7

Cash dividends paid

 

 

 
(525.6
)
 

 

 

Distributions to noncontrolling interests

 

 

 

 

 

 
(8.1
)
Shares issued in connection with share-based compensation plans, net
1.9

 
.2

 
21.8

 

 

 
(.1
)
 

Tax benefit from share-based compensation

 

 
.1

 

 

 

 

Repurchase of shares

 

 

 

 

 
(14.1
)
 

Share-based compensation cost

 

 
46.6

 

 

 

 

Net other comprehensive loss

 

 

 

 
(1.9
)
 

 

BALANCE, December 31, 2013
239.6

 
$
24.1

 
$
5,467.2

 
$
7,327.3

 
$
18.2

 
$
(45.2
)
 
$
7.3



In May 2013, our shareholders approved a new share repurchase program. Subject to certain provisions under English law, including the requirement of Ensco plc to have sufficient distributable reserves, we may purchase up to a maximum of $2.0 billion in the aggregate under the program, but in no case more than 35.0 million shares. The program terminates in May 2018. As of December 31, 2013, there had been no share repurchases under this program.
Benefit Plans
Benefit Plans
BENEFIT PLANS
 
During 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. 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, 2013, there were 9.8 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 an affiliated employee benefit trust at the Company's discretion.

Non-Vested Share Awards
 
Grants of non-vested share awards 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. Our 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, 2013 (in millions):
 
2013
 
2012
 
2011
Contract drilling
$
21.3

 
$
17.1

 
$
17.0

General and administrative
21.6

 
24.8

 
21.5

Non-vested share award related compensation expense included in operating expenses
42.9

 
41.9

 
38.5

Tax benefit
(5.4
)
 
(7.0
)
 
(6.9
)
Total non-vested share award related compensation expense included in net income
$
37.5

 
$
34.9

 
$
31.6



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, 2013:
 
2013
 
2012
 
2011
Weighted-average grant-date fair value of
  non-vested share awards granted (per share)
$
59.79

 
$
48.32

 
$
52.50

Total fair value of non-vested share awards
  vested during the period (in millions)
$
49.6

 
$
42.5

 
$
41.0


    
The following table summarizes non-vested share award activity for the year ended December 31, 2013 (shares in thousands): 
 
Shares
 
Weighted-Average
Grant-Date
Fair Value
Non-vested share awards as of December 31, 2012
2,491

 
$
46.52

Granted
1,018

 
59.79

Vested
(829
)
 
49.96

Forfeited
(184
)
 
49.16

Non-vested share awards as of December 31, 2013
2,496

 
$
52.95



As of December 31, 2013, there was $100.5 million of total unrecognized compensation cost related to non-vested share awards, which is expected to be recognized over a weighted-average period of 2.2 years.

Share Option Awards

Share option awards ("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, 2013, options granted under predecessor or acquired plans to purchase 814,000 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, 2013 (in millions):
 
2013
 
2012
 
2011
General and administrative
$
.8

 
$
1.6

 
$
2.5

Option related compensation expense included in operating expenses
.8

 
1.6

 
2.5

Tax benefit
(.1
)
 
(.3
)
 
(.5
)
Total option related compensation expense included in net income
$
.7

 
$
1.3

 
$
2.0


    
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 years ended December 31, 2013 and 2012. The following weighted-average assumptions were utilized in the Black-Scholes model for options granted during the year ended December 31, 2011:
 
 
2011
Risk-free interest rate
 
1.4
%
Expected term (in years)
 
3.7

Expected volatility
 
50.2
%
Dividend yield
 
2.6
%


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, 2013 (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, 2012
1,346

 
$
46.05

 
 

 
 

Granted

 

 
 

 
 

Exercised
(506
)
 
43.96

 
 

 
 

Forfeited

 

 
 

 
 

Expired
(26
)
 
51.24

 
 

 
 

Outstanding as of December 31, 2013
814

 
$
47.18

 
2.5

 
$
9,065

Exercisable as of December 31, 2013
780

 
$
46.85

 
2.4

 
$
8,986



The following table summarizes the value of options granted and exercised during each of the years in the three-year period ended December 31, 2013:
 
2013
 
2012
 
2011
Weighted-average grant-date fair value of
options granted (per share)
$

 
$

 
$
19.05

Intrinsic value of options exercised during
the year (in millions)
$
8.7

 
$
17.8

 
$
17.2


   
The following table summarizes information about options outstanding as of December 31, 2013 (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
$21.54 - $40.99
 
247
 
3.1 years
 
$33.51
 
247
 
$33.51
41.18 - 54.30
 
229
 
3.5 years
 
43.77
 
217
 
43.22
55.34 - 60.74
 
338
 
1.3 years
 
59.50
 
316
 
59.79
 
 
814
 
2.5 years
 
$47.18
 
780
 
$46.85


As of December 31, 2013, there was $200,000 of total unrecognized compensation cost related to options, which is expected to be recognized over a weighted-average period of 0.3 years.

Performance Awards

Under the 2012 LTIP, performance awards may be issued to our senior executive officers. Performance awards granted prior to 2013 are payable in Ensco shares, cash or a combination thereof upon attainment of specified performance goals based on relative total shareholder return ("TSR") and absolute and relative return on capital employed ("ROCE"). Performance awards granted during 2013 are payable in Ensco shares upon attainment of specified performance goals based on relative TSR and relative ROCE. 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 granted prior to 2013 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. Our performance awards granted during 2013 are classified as equity awards with compensation expense 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 for the relative ROCE performance goal 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 2013, 2012 and 2011 totaled $8.2 million, $7.2 million and $3.1 million, respectively. The aggregate fair value of performance awards vested during 2013, 2012 and 2011 totaled $7.4 million, $5.3 million and $5.6 million, respectively, all of which was paid in cash.

During the years ended December 31, 2013, 2012 and 2011, we recognized $6.6 million, $9.7 million and $6.7 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, 2013, there was $8.7 million of total unrecognized compensation cost related to unvested performance awards, which is expected to be recognized over a weighted-average period of 1.8 years.

Savings Plans

We have profit sharing plans (the "Ensco Savings Plan," the "Ensco Multinational Savings Plan" and the "Ensco Limited Retirement 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.  The Ensco Limited Retirement Plan also 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 $21.1 million, $16.5 million and $12.8 million for the years ended December 31, 2013, 2012 and 2011, 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 $55.3 million, $45.1 million and $21.1 million for the years ended December 31, 2013, 2012 and 2011, 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, 2013 is detailed below by reporting unit (in millions):
Floaters

$3,081.4

Jackups
192.6

Total

$3,274.0


    
Drilling Contract Intangibles
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, 2013 and 2012 were as follows (in millions):
 
December 31, 2013
 
December 31, 2012
 
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

 
$
(88.3
)
 
$
120.7

 
$
209.0

 
$
(36.4
)
 
$
172.6

Amortization

 
(42.3
)
 
(42.3
)
 

 
(51.9
)
 
(51.9
)
Balance, end of period
$
209.0

 
$
(130.6
)
 
$
78.4

 
$
209.0

 
$
(88.3
)
 
$
120.7

 
 
 
 
 
 
 
 
 
 
 
 
Drilling contract intangible liabilities
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
278.0

 
$
(160.0
)
 
$
118.0

 
$
278.0

 
$
(92.8
)
 
$
185.2

Amortization

 
(48.9
)
 
(48.9
)
 

 
(67.2
)
 
(67.2
)
Balance, end of period
$
278.0

 
$
(208.9
)
 
$
69.1

 
$
278.0

 
$
(160.0
)
 
$
118.0



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 net (reduction) increase to future operating revenues related to the amortization of these intangible assets and liabilities as of December 31, 2013, is as follows (in millions):
2014
 
$
(4.3
)
2015
 
(4.5
)
2016
 
(.8
)
2017
 
.3

Total
 
$
(9.3
)
Income Taxes
Income Taxes
INCOME TAXES

We generated income of $177.0 million, $109.3 million and loss of $28.3 million from continuing operations before income taxes in the U.S. and $1.5 billion, $1.4 billion and $751.5 million of income from continuing operations before income taxes in non-U.S. countries for the years ended December 31, 2013, 2012 and 2011, 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, 2013 (in millions):
 
2013
 
2012
 
2011
Current income tax expense:
 

 
 

 
 

U.S.
$
97.3

 
$
42.8

 
$
40.7

Non-U.S.
122.1

 
183.6

 
94.2

 
219.4

 
226.4

 
134.9

Deferred income tax expense (benefit):
 

 
 

 
 

U.S.
14.7

 
32.0

 
(14.8
)
Non-U.S.
(8.5
)
 
(14.0
)
 
(4.7
)
 
6.2

 
18.0

 
(19.5
)
Total income tax expense
$
225.6

 
$
244.4

 
$
115.4


    
Deferred Taxes

The following table summarizes significant components of deferred income tax assets (liabilities) as of December 31, 2013 and 2012 (in millions):
 
 
2013
 
2012
Deferred tax assets:
 
 
 
 

Foreign tax credits
 
$
159.0

 
$
173.4

Premium on long-term debt
 
111.9

 
124.0

Net operating loss carryforwards
 
104.0

 
87.8

Employee benefits, including share-based compensation
 
41.7

 
33.4

Deferred revenue
 
19.4

 
22.7

Other
 
19.8

 
24.5

Total deferred tax assets
 
455.8

 
465.8

Valuation allowance
 
(232.6
)
 
(227.1
)
Net deferred tax assets
 
223.2

 
238.7

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(453.6
)
 
(472.9
)
Intercompany transfers of property
 
(29.2
)
 
(32.2
)
Deferred costs
 
(11.4
)
 
(20.9
)
Other
 
(24.0
)
 
(31.3
)
Total deferred tax liabilities
 
(518.2
)
 
(557.3
)
Net deferred tax liability
 
$
(295.0
)
 
$
(318.6
)
Net current deferred tax asset
 
$
20.9

 
$
13.8

Net noncurrent deferred tax liability
 
(315.9
)
 
(332.4
)
Net deferred tax liability
 
$
(295.0
)
 
$
(318.6
)

 
Unrecognized tax benefits of $21.0 million associated with a tax position taken in tax years with NOL carryforwards were presented as a reduction of deferred tax assets in accordance with Financial Accounting Standards Board ("FASB") ASC Topic 740 Income Taxes.    

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 our estimates of future taxable income change.

As of December 31, 2013, we had deferred tax assets of $159.0 million for U.S. foreign tax credits (“FTC”) and $104.0 million related to $375.6 million of net operating loss (“NOL”) carryforwards, which can be used to reduce our income taxes payable in future years.  The FTC expires between 2017 and 2023.  NOL carryforwards, which were generated in various jurisdictions worldwide, include $231.4 million that do not expire and $144.2 million that will expire, if not utilized, beginning in 2014 through 2020.  Due to the uncertainty of realization, we have a $228.8 million valuation allowance on FTC and NOL carryforwards, 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, 2013, differs from the U.K. statutory income tax rate as follows:
 
2013
 
2012
 
2011
U.K. statutory income tax rate
23.3
 %
 
24.5
 %
 
26.5
 %
Non-U.K. taxes
(12.9
)
 
(15.5
)
 
(19.6
)
Valuation allowance
1.8

 
2.6

 
6.8

Net expense associated with uncertain tax positions and other adjustments relating to prior years
.6

 
1.0

 
.8

Amortization of net deferred charges
   associated with intercompany rig sales
.3

 
.6

 
1.0

Income taxes associated with restructuring transactions

 
3.5

 

Other
.5

 

 
.4

Effective income tax rate
13.6
 %
 
16.7
 %
 
15.9
 %


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 2013 includes various discrete tax items. The majority of discrete tax expense recognized during 2013 was attributable to the recognition of a $7.4 million liability for taxes associated with a $30.6 million reimbursement from the resolution of a dispute with the Mexican tax authority and a $7.0 million increase in the valuation allowance on U.S. FTC resulting from a restructuring transaction in December 2013. Our consolidated effective income tax rate for 2012 also includes the impact of various discrete tax items. The majority of discrete tax expense recognized during 2012 was 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. Excluding the impact of the aforementioned discrete tax items, our consolidated effective income tax rate for the years ended December 31, 2013 and 2012 was 12.7% and 12.2%, respectively. The increase in our consolidated effective income tax rate, excluding discrete tax items, was due to the change 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 taxing jurisdictions with higher tax rates.    

Our consolidated effective income tax rate for 2011 includes the impact of various discrete tax items. The majority of discrete tax expense recognized during 2011 was 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 tax items, our consolidated effective income tax rate for the year ended December 31, 2011 was 15.1%. The decrease in our 2012 consolidated effective income tax rate, excluding discrete tax items, to 12.2% from 15.1% in 2011 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 taxing 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, 2013, we had $151.7 million of unrecognized tax benefits, of which $130.7 million was included in other liabilities on our consolidated balance sheet. Unrecognized tax benefits of $21.0 million associated with a tax position taken in tax years with NOL carryforwards were presented as a reduction of deferred tax assets in accordance with FASB ASC Topic 740 Income Taxes. If recognized, $127.4 million of our unrecognized tax benefits would impact our consolidated effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 and 2012 is as follows (in millions):
 
 
2013
 
2012
Balance, beginning of year
 
$
110.7

 
$
53.6

   Increases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
35.8

 
21.3

   Increases in unrecognized tax benefits as a result
      of tax positions taken during the current year
 
10.0

 
60.7

   Decreases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
(3.7
)
 
(.4
)
Settlements with taxing authorities
 

 
(4.1
)
Lapse of applicable statutes of limitations
 
(1.1
)
 
(20.8
)
Impact of foreign currency exchange rates
 

 
.4

Balance, end of year
 
$
151.7

 
$
110.7


   
Accrued interest and penalties totaled $17.3 million and $18.9 million as of December 31, 2013 and 2012, respectively, and were included in other liabilities on our consolidated balance sheets. We recognized net benefits of $1.6 million, $2.8 million and $400,000 associated with interest and penalties during the years ended December 31, 2013, 2012 and 2011, 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, 2011 and 2012 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 2013, 2012 and 2011, resulting in net income tax benefits, inclusive of interest and penalties, of $3.1 million, $28.6 million and $4.2 million, respectively.
  
Statutes of limitations applicable to certain of our tax positions will lapse during 2014.  Therefore, it is reasonably possible that our unrecognized tax benefits will decline during the next 12 months by $2.3 million, inclusive of $900,000 of accrued interest and penalties, all of which 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 during 2011, one jackup rig during 2012 and two semisubmersible rigs during 2013.  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. There was no income tax liability associated with the intercompany transfers of drilling rigs during 2013. 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 during 2012 and 2011. Similarly, the tax effects of $29.6 million of reversing temporary differences of the selling subsidiaries during 2011 also were deferred and are being amortized on the same basis and over the same periods as described above.

As of December 31, 2013 and 2012, the unamortized balance associated with deferred charges for income taxes incurred in connection with intercompany transfers of drilling rigs totaled $50.2 million and $58.3 million, respectively, and was included in other assets, net, on our consolidated balance sheets. Current income tax expense for the years ended December 31, 2013, 2012 and 2011 included $8.1 million, $13.4 million and $14.0 million, respectively, of amortization of income taxes incurred in connection with intercompany transfers of drilling rigs.
 
As of December 31, 2013 and 2012, the deferred tax liability associated with temporary differences of transferred drilling rigs totaled $29.2 million and $32.2 million, respectively, and was included in deferred income taxes on our consolidated balance sheets.  Deferred income tax expense for the years ended December 31, 2013, 2012 and 2011 included benefits of $3.0 million, $4.4 million and $4.6 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, 2013, 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, 2013.
Discontinued Operations
Discontinued Operations
DISCONTINUED OPERATIONS
We sold the following rigs during the three-year period ended December 31, 2013 (in millions):
Rig
 
Date of Rig Sale
 
Segment(1)
 
Net Proceeds
 
Net Book Value(2)
 
Pre-tax (Loss)/Gain(3)
Pride Pennsylvania
 
March 2013
 
Jackups
 
$
15.5

 
$
15.7

 
$
(.2
)
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

 
 
 
 
 
 
$
203.0

 
$
204.5

 
$
(1.5
)
(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, 2013 and were previously 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 (loss)/gain was included in loss from discontinued operations, net in our consolidated statement of income in the year of sale. Income tax expense of $900,000 and $10.9 million was recognized in connection with the sale of assets during the years ended December 31, 2013 and December 31, 2011, respectively. There was no net income tax expense recognized in connection with the sale of assets during the year ended December 31, 2012.

During 2012, we classified jackup rig Pride Pennsylvania as held for sale and the rig was written down to fair value less estimated cost to sell. We recognized a $2.5 million loss for assets classified as held for sale during the year ended December 31, 2012.

The following table summarizes loss from discontinued operations for each of the years in the three-year period ended December 31, 2013 (in millions):
 
 
2013
 
2012
 
2011
Revenues
 
$

 
$
6.7

 
$
45.0

Operating expenses
 
6.5

 
44.3

 
44.4

Operating (loss) income
 
(6.5
)
 
(37.6
)
 
.6

Other income
 
.3

 
1.3

 
.2

Income tax benefit (expense)
 
2.3

 
7.3

 
(4.8
)
(Loss) gain on disposal of discontinued operations, net
 
(1.1
)
 
(16.5
)
 
1.8

Loss from discontinued operations
 
$
(5.0
)
 
$
(45.5
)
 
$
(2.2
)


Debt and interest expense are not allocated to our discontinued operations.

During 2008, ENSCO 74 was lost as a result of Hurricane Ike in the U.S. Gulf of Mexico. The owner of a pipeline filed claims alleging that ENSCO 74 caused the pipeline to rupture during Hurricane Ike. We have incurred $3.6 million in professional fees in connection with this matter, which we have applied against our $10.0 million per occurrence deductible under our liability insurance policy.

We recently reached an agreement in principle to settle with the pipeline owner for $9.6 million. Accordingly, we recorded a $6.4 million charge for our remaining obligation under our liability insurance policy in loss from discontinued operations in our consolidated statement of income for the year ended December 31, 2013. The remaining $3.2 million will be settled by our underwriters. See "Note 12 - Commitments and Contingencies" for additional information on the ENSCO 74 loss.
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 $53.6 million, $47.5 million and $31.5 million during the years ended December 31, 2013, 2012 and 2011, respectively. Future minimum rental payments under our noncancellable operating lease obligations are as follows:  $36.9 million during 2014; $20.1 million during 2015; $10.3 million during 2016; $9.5 million during 2017; $9.6 million during 2018 and $63.7 million thereafter.

Capital Commitments

The following table summarizes the cumulative amount of contractual payments made as of December 31, 2013 for our rigs under construction and estimated timing of our remaining contractual payments (in millions): 
 
 
Cumulative Paid(1)
 
2014
 
2015
 
2016
 
Total(2)
ENSCO DS-8
 
161.4

 
383.2

 

 

 
544.6

ENSCO DS-9
 
157.4

 
373.2

 

 

 
530.6

ENSCO DS-10
 
103.0

 
103.0

 
307.4

 

 
513.4

ENSCO 110
 
41.0

 

 
166.1

 

 
207.1

ENSCO 122
 
49.0

 
202.0

 

 

 
251.0

ENSCO 123
 
53.5

 

 

 
213.8

 
267.3

 
 
$
565.3

 
$
1,061.4

 
$
473.5

 
$
213.8

 
$
2,314.0



(1)
Cumulative paid represents the aggregate amount of contractual payments made from commencement of the construction agreement through December 31, 2013.

(2)
Total commitments are based on fixed-price shipyard construction contracts, exclusive of costs associated with commissioning, systems integration testing, project management and capitalized interest.

Future contractual payments for rig enhancement projects, which are not reflected in the table above, are $94.2 million. We currently estimate these payments will be made during 2014.     

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.
 
ENSCO 74 Loss

During 2008, 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.
 
During 2012, we entered into an agreement with the customer pursuant to which, among other matters, the customer agreed to remove the legs. Regardless of the actual removal costs incurred by the customer, we agreed to pay $19.0 million in nine installments upon the completion of certain milestones during the removal. We have insurance coverage for the actual removal costs incurred by the customer.
 
We have paid $19.0 million to the customer and received $18.5 million in insurance reimbursements through December 31, 2013. Our consolidated balance sheet as of December 31, 2013 included a $500,000 receivable for recovery of related costs under our insurance policy in other assets, net.

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 claimants remain. We have liability insurance policies that provide coverage for such 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 deductible for third-party claims and an annual aggregate limit of $490.0 million

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 owner of a pipeline filed claims alleging that ENSCO 74 caused the 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. These matters are currently scheduled for trial in April 2014. We have reached an agreement in principle with the owner of the pipeline to settle the claims for $9.6 million. Prior to the settlement we incurred legal fees of $3.6 million for this matter. Accordingly, we accrued a $6.4 million liability as of December 31, 2013 for the remainder of our deductible under our liability insurance policy, which was included in accrued liabilities and other on our consolidated balance sheet. The remaining $3.2 million will be paid by underwriters. Based on information currently available, primarily the adequacy of available defenses, we have not concluded that it is probable a liability exists with respect to the claim by the owner of the oil tanker.
 
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 deductible 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.

In December 2013, we reached an agreement in principle with 58 of the plaintiffs to settle lawsuits filed in Mississippi for a nominal amount. While we believe the special master's recommendations will be accepted by the plaintiffs and approved by the Court, there can be no assurances as to the ultimate outcome.
We intend to vigorously defend against the remaining 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 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.

  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.

In the ordinary course of business with customers and others, we have entered into letters of credit and surety bonds to guarantee our performance as it relates to our drilling contracts, contract bidding, customs duties, tax appeals and other obligations in various jurisdictions. Letters of credit and surety bonds outstanding as of December 31, 2013 totaled $232.3 million and are issued under facilities provided by various banks and other financial institutions. Obligations under these letters of credit and surety bonds are not normally called, as we typically comply with the underlying performance requirement. As of December 31, 2013, we had not been required to make collateral deposits with respect to these agreements.
Segment Information
Segment Information
SEGMENT INFORMATION
Our business consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which 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, 2013 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.

Year Ended December 31, 2013
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
Revenues
$
3,109.5

 
$
1,735.2

 
$
75.1

 
$
4,919.8

 
$

 
$
4,919.8

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling
  (exclusive of depreciation)
1,509.4

 
834.6

 
58.5

 
2,402.5

 

 
2,402.5

  Depreciation
441.9

 
163.5

 

 
605.4

 
6.5

 
611.9

  General and administrative

 

 

 

 
146.8

 
146.8

Operating income (loss)
$
1,158.2

 
$
737.1

 
$
16.6

 
$
1,911.9

 
$
(153.3
)
 
$
1,758.6

Property and equipment, net
$
11,303.4

 
$
2,961.6

 
$

 
$
14,265.0

 
$
46.0

 
$
14,311.0

Capital expenditures
$
1,038.1

 
$
714.5

 
$

 
$
1,752.6

 
$
26.6

 
$
1,779.2


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


 
Information about Geographic Areas
 
As of December 31, 2013, our Floaters segment consisted of seven drillships, 13 dynamically positioned semisubmersible rigs and six moored semisubmersible rigs deployed in various locations throughout North and South America, Middle East and Africa, Asia Pacific, Europe and Mediterranean and Brazil. Additionally, our Floaters segment consisted of three ultra-deepwater drillships under construction in South Korea.  Our Jackups segment consisted of 47 jackup rigs, of which 44 were deployed in various locations throughout North and South America, Middle East and Africa, Asia Pacific and Europe and Mediterranean, and three were under construction in Singapore.  
 
As of December 31, 2013, the geographic distribution of our drilling rigs by operating segment was as follows:
 
Floaters

 
Jackups

 
Total *

North & South America (excluding Brazil)
8
 
14
 
22
Middle East & Africa
6
 
10
 
16
Asia & Pacific Rim
3
 
10
 
13
Europe & Mediterranean
2
 
10
 
12
Brazil
7
 
 
7
Asia & Pacific Rim (under construction)
3
 
3
 
6
Total
29
 
47
 
76
 
*We provide management services on two 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
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
United States
$
1,724.9

 
$
1,291.3

 
$
753.8

 
$
4,617.8

 
$
4,525.9

 
$
3,450.6

Brazil
953.7

 
1,093.2

 
575.6

 
2,447.5

 
2,911.3

 
3,101.8

Angola
467.1

 
431.7

 
243.7

 
2,543.7

 
2,147.2

 
1,347.9

Other countries
1,774.1

 
1,484.5

 
1,224.6

 
4,702.0

 
3,561.2

 
4,521.6

Total
$
4,919.8

 
$
4,300.7

 
$
2,797.7

 
$
14,311.0

 
$
13,145.6

 
$
12,421.9

Supplemental Financial Information
Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION

Consolidated Balance Sheet Information

Accounts receivable, net, as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Trade
 
$
869.8

 
$
812.4

Other
 
14.3

 
18.2

 
 
884.1

 
830.6

Allowance for doubtful accounts
 
(28.4
)
 
(19.2
)
 
 
$
855.7

 
$
811.4



The liquidity of OGX Petróleo e Gás Participações S.A. ("OGX") deteriorated during the second half of 2013, and on October 30, 2013, OGX filed for bankruptcy protection in Brazil. We did not recognize revenue for drilling services provided to OGX during the second half of 2013 as we concluded collectability of these amounts was not reasonably assured. Additionally, we recorded a $14.6 million provision for doubtful accounts during the year ended December 31, 2013 for receivables related to drilling services provided through June 30, 2013. Our receivables with OGX were fully reserved on our consolidated balance sheet as of December 31, 2013.

Other current assets as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Inventory
 
$
256.4

 
$
207.8

Prepaid taxes
 
88.1

 
62.2

Short-term investments
 
50.0

 
50.0

Deferred costs
 
47.4

 
46.9

Deferred tax assets
 
23.1

 
14.6

Prepaid expenses
 
18.5

 
20.3

Derivative assets
 
11.6

 
5.2

Assets held for sale
 
8.6

 
14.2

Other
 
10.2

 
4.2

 
 
$
513.9

 
$
425.4


    
    Other assets, net, as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Intangible assets
 
$
83.8

 
$
143.3

Deferred costs
 
59.1

 
45.2

Unbilled receivables
 
51.9

 
77.1

Prepaid taxes on intercompany transfers of property
 
50.2

 
58.3

Supplemental executive retirement plan assets
 
37.7

 
29.8

Warranty and other claim receivables
 
30.6

 
30.6

Deferred tax assets
 
25.2

 
19.3

Wreckage and debris removal receivables
 
.5

 
13.2

Other
 
13.7

 
5.0

 
 
$
352.7

 
$
421.8



      Accrued liabilities and other as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Personnel costs
 
$
242.0

 
$
231.1

Deferred revenue
 
169.8

 
146.9

Taxes
 
84.2

 
86.9

Accrued interest
 
68.0

 
67.9

Advance payment received on sale of assets
 
33.0

 

Customer pre-payments
 
20.0

 

Wreckage and debris removal
 

 
9.0

Other
 
41.7

 
42.6

 
 
$
658.7

 
$
584.4



Other liabilities as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Deferred revenue
 
$
217.6

 
$
224.5

Unrecognized tax benefits (inclusive of interest and penalties)

 
148.0

 
129.6

Intangible liabilities
 
69.1

 
118.0

Supplemental executive retirement plan liabilities
 
40.5

 
33.3

Personnel costs
 
37.2

 
31.6

Other
 
33.3

 
36.4

 
 
$
545.7

 
$
573.4


 
Accumulated other comprehensive income as of December 31, 2013 and 2012 consisted of the following (in millions):
 
2013
 
2012
Derivative Instruments
$
20.6

 
$
24.4

Other
(2.4
)
 
(4.3
)
 
$
18.2

 
$
20.1


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, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
Repair and maintenance expense
 
$
374.4

 
$
344.9

 
$
263.7



Consolidated Statement of Cash Flows Information
 
Net cash provided by operating activities of continuing operations attributable to the net change in operating assets and liabilities for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
(Increase) decrease in other assets
 
$
(80.7
)
 
$
80.1

 
$
(14.5
)
(Decrease) increase in liabilities
 
(22.9
)
 
319.0

 
(13.2
)
Decrease (increase) in accounts receivable
 
1.1

 
28.1

 
(244.8
)
 
 
$
(102.5
)
 
$
427.2

 
$
(272.5
)


Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
Interest, net of amounts capitalized
 
$
182.2

 
$
150.7

 
$
28.6

Income taxes
 
221.8

 
103.5

 
123.9



Capitalized interest totaled $67.7 million, $105.8 million and $80.2 million during the years ended December 31, 2013, 2012 and 2011, respectively. Capital expenditure accruals totaling $113.9 million, $112.5 million and $305.8 million for the years ended December 31, 2013, 2012 and 2011, 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, debt premiums related to the fair value adjustment of acquired Company debt instruments, deferred charges for income taxes incurred on intercompany transfers of drilling rigs and certain other deferred costs.

Concentration of 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 generally 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 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 well-capitalized 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 by entering into 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. 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 years ended December 31, 2013, 2012 and 2011, Petrobras, our largest customer, accounted for $817.8 million, $1.0 billion and $456.6 million, or 17%, 24% and 16%, of consolidated revenues, respectively, all of which were attributable to our Floaters segment.  

During the year ended December 31, 2013, revenues provided by our drilling operations in the U. S. Gulf of Mexico totaled $1.7 billion, or 35%, of consolidated revenues, of which 75% were attributable to our Floaters segment. Revenues provided by our drilling operations in Brazil during the year ended December 31, 2013 totaled $953.7 million, or 19%, of consolidated revenues, all of which 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 of $1.7 billion as of December 31, 2013. 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, 2013.
 
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, 2013; our condensed consolidating statements of comprehensive income for each of the years in the three-year period ended December 31, 2013; our condensed consolidating balance sheets as of December 31, 2013 and 2012; and our condensed consolidating statements of cash flows for each of the years in the three-year period ended December 31, 2013, in accordance with Rule 3-10 of Regulation S-X. 
 
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2013
(in millions)
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-guarantor Subsidiaries of Ensco  
 
Consolidating Adjustments
 
Total  
OPERATING REVENUES
$
35.0

 
$
149.4

 
$

 
$
5,042.8

 
$
(307.4
)
 
$
4,919.8

OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
27.5

 
149.4

 

 
2,533.0

 
(307.4
)
 
2,402.5

Depreciation
.3

 
4.0

 

 
607.6

 

 
611.9

General and administrative
63.5

 
.5

 

 
82.8

 

 
146.8

OPERATING (LOSS) INCOME
(56.3
)
 
(4.5
)
 

 
1,819.4

 

 
1,758.6

OTHER (EXPENSE) INCOME, NET
(65.6
)
 
(9.4
)
 
(27.9
)
 
2.8

 

 
(100.1
)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(121.9
)
 
(13.9
)

(27.9
)

1,822.2




1,658.5

INCOME TAX PROVISION

 
92.5

 

 
133.1

 

 
225.6

DISCONTINUED OPERATIONS, NET

 

 

 
(5.0
)
 

 
(5.0
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
1,540.1

 
366.2

 
111.6

 

 
(2,017.9
)
 

NET INCOME
1,418.2

 
259.8


83.7


1,684.1


(2,017.9
)

1,427.9

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(9.7
)
 

 
(9.7
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
1,418.2

 
$
259.8


$
83.7


$
1,674.4


$
(2,017.9
)

$
1,418.2


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 FROM CONTINUING OPERATIONS 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 COMPREHENSIVE INCOME
Year Ended December 31, 2013
(in millions)
 
 Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
1,418.2

 
$
259.8

 
$
83.7

 
$
1,684.1

 
$
(2,017.9
)
 
$
1,427.9

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

 
(5.8
)
 

 

 

 
(5.8
)
Reclassification of net losses on derivative instruments from other comprehensive income into net income

 
2.0

 

 

 

 
2.0

Other

 

 

 
1.9

 

 
1.9

NET OTHER COMPREHENSIVE (LOSS) INCOME

 
(3.8
)
 

 
1.9

 

 
(1.9
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,418.2

 
256.0

 
83.7

 
1,686.0

 
(2,017.9
)
 
1,426.0

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(9.7
)
 

 
(9.7
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
1,418.2

 
$
256.0

 
$
83.7

 
$
1,676.3

 
$
(2,017.9
)
 
$
1,416.3



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE 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
 
 
 
 
 
 
 
 
 
 
 
 
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

 
6.3

 

 
2.4

 

 
8.7

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

 
.2

 

 
(.2
)
 

 

Other

 

 

 
2.8

 

 
2.8

NET OTHER COMPREHENSIVE INCOME

 
6.5

 

 
5.0

 

 
11.5

 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,169.7

 
262.7

 
189.2

 
1,424.6

 
(1,858.0
)
 
1,188.2

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(7.0
)
 

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

 
$
262.7

 
$
189.2

 
$
1,417.6

 
$
(1,858.0
)
 
$
1,181.2




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE 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
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
600.4

 
$
220.5

 
$
119.7

 
$
748.2

 
$
(1,083.2
)
 
$
605.6

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

 
(4.2
)
 

 
4.3

 

 
.1

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

 
.2

 

 
(5.7
)
 

 
(5.5
)
Other

 

 

 
2.9

 

 
2.9

NET OTHER COMPREHENSIVE (LOSS) INCOME

 
(4.0
)
 

 
1.5

 

 
(2.5
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
600.4

 
216.5

 
119.7

 
749.7

 
(1,083.2
)
 
603.1

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(5.2
)
 

 
(5.2
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
216.5

 
$
119.7

 
$
744.5

 
$
(1,083.2
)
 
$
597.9



























ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2013
(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
$
46.5

 
$
.5

 
$
4.9

 
$
113.7

 
$

 
$
165.6

Accounts receivable, net 

 

 

 
855.7

 

 
855.7

Accounts receivable from
  affiliates
1,235.0

 
213.8

 
5.5

 
4,169.2

 
(5,623.5
)
 

Other
3.2

 
61.3

 

 
449.4

 

 
513.9

 Total current assets
1,284.7

 
275.6

 
10.4

 
5,588.0

 
(5,623.5
)
 
1,535.2

PROPERTY AND EQUIPMENT, AT COST
2.1

 
34.3

 

 
17,462.1

 

 
17,498.5

Less accumulated depreciation
1.5

 
26.5

 

 
3,159.5

 

 
3,187.5

Property and equipment, net  
.6

 
7.8

 

 
14,302.6

 

 
14,311.0

GOODWILL

 

 

 
3,274.0

 

 
3,274.0

DUE FROM AFFILIATES
4,876.8

 
4,236.0

 
1,898.0

 
5,069.7

 
(16,080.5
)
 

INVESTMENTS IN AFFILIATES
13,830.1

 
4,868.6

 
4,092.2

 

 
(22,790.9
)
 

OTHER ASSETS, NET 
8.8

 
60.1

 

 
283.8

 

 
352.7

 
$
20,001.0

 
$
9,448.1

 
$
6,000.6

 
$
28,518.1

 
$
(44,494.9
)
 
$
19,472.9

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
31.5

 
$
9.1

 
$
34.2

 
$
925.0

 
$

 
$
999.8

Accounts payable to affiliates
3,666.1

 
549.7

 

 
1,407.7

 
(5,623.5
)
 

Current maturities of long-term
  debt

 

 

 
47.5

 

 
47.5

Total current liabilities
3,697.6

 
558.8

 
34.2

 
2,380.2

 
(5,623.5
)
 
1,047.3

DUE TO AFFILIATES 
1,030.8

 
2,760.4

 
1,331.1

 
10,958.2

 
(16,080.5
)
 

LONG-TERM DEBT 
2,473.7

 
149.1

 
2,007.8

 
88.3

 

 
4,718.9

DEFERRED INCOME TAXES

 
358.3

 

 
3.8

 

 
362.1

OTHER LIABILITIES

 
2.3

 
8.7

 
534.7

 

 
545.7

ENSCO SHAREHOLDERS' EQUITY 
12,798.9

 
5,619.2

 
2,618.8

 
14,545.6

 
(22,790.9
)
 
12,791.6

NONCONTROLLING INTERESTS

 

 

 
7.3

 

 
7.3

Total equity
12,798.9

 
5,619.2

 
2,618.8

 
14,552.9

 
(22,790.9
)
 
12,798.9

      
$
20,001.0

 
$
9,448.1

 
$
6,000.6

 
$
28,518.1

 
$
(44,494.9
)
 
$
19,472.9

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 STATEMENTS OF CASH FLOWS
Year Ended December 31, 2013
(in millions)
 
Ensco plc
 
ENSCO International Incorporated  
 
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
$
(114.8
)
 
$
(128.7
)
 
$
(62.9
)
 
$
2,286.7

 
$

 
$
1,980.3

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment 

 

 

 
(1,779.2
)
 

 
(1,779.2
)
Purchases of short-term investments

 

 

 
(50.0
)
 

 
(50.0
)
Maturities of short-term investments

 

 

 
50.0

 

 
50.0

Advance payment received on sale of assets

 

 

 
33.0

 

 
33.0

Other

 
(4.1
)
 

 
10.1

 

 
6.0

Net cash used in investing activities of continuing operations 

 
(4.1
)
 

 
(1,736.1
)
 

 
(1,740.2
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 

 


Cash dividends paid
(525.6
)
 

 

 

 

 
(525.6
)
Reduction of long-term
  borrowings

 

 

 
(47.5
)
 

 
(47.5
)
Proceeds from exercise of share
  options
22.3

 

 

 

 

 
22.3

Debt financing costs

 
(4.6
)
 

 

 

 
(4.6
)
Advances from (to) affiliates
407.2

 
136.2

 
(17.2
)
 
(526.2
)
 

 

Other
(14.4
)
 

 

 
(7.3
)
 

 
(21.7
)
      Net cash (used in) provided by
         financing activities
(110.5
)
 
131.6

 
(17.2
)
 
(581.0
)
 

 
(577.1
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 


Operating activities

 

 

 
.2

 

 
.2

Investing activities

 

 

 
15.5

 

 
15.5

Net cash provided by discontinued operations

 

 


15.7



 
15.7

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(.2
)
 

 
(.2
)
DECREASE IN CASH AND CASH EQUIVALENTS
(225.3
)
 
(1.2
)

(80.1
)

(14.9
)



(321.5
)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
271.8

 
1.7

 
85.0

 
128.6

 

 
487.1

CASH AND CASH EQUIVALENTS, END OF YEAR
$
46.5

 
$
.5


$
4.9


$
113.7


$


$
165.6



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
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 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
)
Purchases of short-term investments

 

 

 
(90.0
)
 

 
(90.0
)
Maturities of short-term investments

 

 

 
44.5

 

 
44.5

Other
(.3
)
 
.4

 

 
3.1

 

 
3.2

   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
)
Commercial paper borrowings,
  net
(125.0
)
 

 

 

 

 
(125.0
)
Equity issuance reimbursement
66.7

 

 

 

 

 
66.7

Reduction of long-term
  borrowings

 

 

 
(47.5
)
 

 
(47.5
)
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
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

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
35.2

 
1.7


62.4


(42.9
)



56.4

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
236.6

 

 
22.6

 
171.5

 

 
430.7

CASH AND CASH EQUIVALENTS, END OF YEAR
$
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 Incorporated
 
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
)
Purchases of short-term investments

 

 

 
(4.5
)
 

 
(4.5
)
Other

 
(6.1
)
 

 
11.4

 

 
5.3

   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 cost
(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
(1,956.1
)
 
(34.5
)
 
170.6

 
1,820.0

 

 

Other
(10.6
)
 

 

 
(5.1
)
 

 
(15.7
)
Net cash provided by (used in) financing activities
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 (used in) provided by discontinued operations

 
(11.1
)



40.2



 
29.1

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(.8
)
 

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

 
(19.1
)

22.6


(856.7
)


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

 
19.1

 

 
1,028.2

 

 
1,050.7

CASH AND CASH EQUIVALENTS, END
       OF YEAR
$
236.6

 
$


$
22.6


$
171.5


$

 
$
430.7

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

The following tables summarize our unaudited quarterly consolidated income statement data for the years ended December 31, 2013 and 2012 (in millions, except per share amounts):

2013
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
1,149.9

 
$
1,248.1

 
$
1,266.2

 
$
1,255.6

 
$
4,919.8

Operating expenses
 
 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
560.8

 
606.8

 
619.2

 
615.7

 
2,402.5

Depreciation
149.0

 
152.9

 
153.3

 
156.7

 
611.9

General and administrative
37.8

 
36.4

 
37.4

 
35.2

 
146.8

Operating income
402.3

 
452.0

 
456.3

 
448.0

 
1,758.6

Other expense, net
(29.8
)
 
(39.8
)
 
(1.6
)
 
(28.9
)
 
(100.1
)
Income from continuing operations before income taxes
372.5

 
412.2

 
454.7

 
419.1

 
1,658.5

Provision for income taxes
51.7

 
49.6

 
73.3

 
51.0

 
225.6

Income from continuing operations
320.8

 
362.6

 
381.4

 
368.1

 
1,432.9

Loss from discontinued operations, net
(.9
)
 

 

 
(4.1
)
 
(5.0
)
Net income
319.9

 
362.6

 
381.4

 
364.0

 
1,427.9

Net income attributable to noncontrolling interests
(2.8
)
 
(1.7
)
 
(2.6
)
 
(2.6
)
 
(9.7
)
Net income attributable to Ensco
$
317.1

 
$
360.9

 
$
378.8

 
$
361.4

 
$
1,418.2

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 


Continuing operations
$
1.37

 
$
1.55

 
$
1.62

 
$
1.57

 
$
6.10

Discontinued operations
(0.01
)
 

 

 
(0.02
)
 
(0.02
)
 
$
1.36

 
$
1.55

 
$
1.62

 
$
1.55

 
$
6.08

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 


Continuing operations
$
1.36

 
$
1.55

 
$
1.62

 
$
1.56

 
$
6.09

Discontinued operations

 

 

 
(0.02
)
 
(0.02
)
 
$
1.36

 
$
1.55

 
$
1.62

 
$
1.54

 
$
6.07

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

Subsequent Events Subsequent Events
Subsequent Events [Text Block]
SUBSEQUENT EVENT

In January 2014, we closed on the sale of two jackup rigs, ENSCO 69 and Pride Wisconsin, for $33.0 million. The proceeds were received in December 2013 and included in net cash used in investing activities of continuing operations in our consolidated statement of cash flows for the year ended December 31, 2013 and accrued liabilities and other on our consolidated balance sheet as of December 31, 2013. We classified the rigs as held for sale during the fourth quarter of 2013 and included the $8.6 million aggregate net book value in other current assets on our consolidated balance sheet as of December 31, 2013. The gain on sale will be recognized during the first quarter of 2014.
Description Of The Business And Summary Of Significant Accounting Policies (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 six rigs under construction, spanning most of the strategic, high-growth markets around the globe. Our rig fleet includes ten drillships, 13 dynamically positioned semisubmersible rigs, six moored semisubmersible rigs and 45 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.  

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 offshore basin around the world. The markets in which we operate include the U.S. Gulf of Mexico, Mexico, Brazil, the Mediterranean, the North Sea, the Middle East, West Africa, Australia and Southeast Asia.

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

During 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, 2013 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 gains of $6.4 million, net foreign currency exchange losses of $3.5 million and net foreign currency exchange gains of $16.9 million for the years ended December 31, 2013, 2012 and 2011, 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 at 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 sheets and totaled $50.0 million as of December 31, 2013 and 2012. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our consolidated statements of cash flows for the years ended December 31, 2013, 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.
    
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
Our business consists of three operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which 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.

Based on a qualitative assessment performed as of December 31, 2013, we concluded it was more-likely-than-not that the fair value of our reporting units exceeded their carrying amount, and there was no impairment of goodwill. However, if the market value of our shares declines for a prolonged period, and if management's judgments and assumptions regarding future industry conditions and operations diminish, it is reasonably possible that our expectations of future cash flows may decline and ultimately result in a goodwill impairment for our Floaters reporting unit. 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 prior to commencement of drilling operations 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 $66.6 million and $54.5 million as of December 31, 2013 and 2012, respectively. Deferred mobilization revenue was included in accrued liabilities and other, and other liabilities on our consolidated balance sheets and totaled $76.8 million and $52.6 million as of December 31, 2013 and 2012, 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 $273.6 million and $301.9 million as of December 31, 2013 and 2012, 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 $18.3 million and $14.4 million as of December 31, 2013 and 2012, 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 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. Derivatives subject to legally enforceable master netting agreements are not offset on our consolidated balance sheet. 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 do not offset deferred tax assets and deferred tax liabilities attributable to different tax paying jurisdictions.
    
We operate in certain 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 is calculated 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, 2013 (in millions):

 
2013
 
2012
 
2011
Net income attributable to Ensco

$1,418.2

 

$1,169.7

 

$600.4

Net income allocated to non-vested share awards
(15.1
)
 
(12.3
)
 
(6.9
)
Net income attributable to Ensco shares

$1,403.1

 

$1,157.4

 

$593.5



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, 2013 (in millions):

 
2013
 
2012
 
2011
Weighted-average shares - basic
230.9

 
229.4

 
192.2

Potentially dilutive shares
.2

 
.3

 
.4

Weighted-average shares - diluted
231.1

 
229.7

 
192.6



Antidilutive share options totaling 300,000 for the year ended December 31, 2013 and 400,000 for the years ended December 31, 2012 and 2011 were excluded from the computation of diluted EPS.
Noncontrolling Interests

Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries. Noncontrolling interests are classified as equity on our consolidated balance sheet and net income attributable to noncontrolling interests is presented separately in our consolidated statement of income. 

Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):

 
2013
 
2012
 
2011
Income from continuing operations
$
1,432.9

 
$
1,222.2

 
$
607.8

Income from continuing operations attributable to noncontrolling interests
(9.7
)
 
(7.0
)
 
(5.2
)
Income from continuing operations attributable to Ensco
$
1,423.2

 
$
1,215.2

 
$
602.6


    
Loss from discontinued operations, net, for each of the years in the three-year period ended December 31, 2013 was attributable to Ensco.

Description Of The Business And Summary Of Significant Accounting Policies (Tables)
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, 2013 (in millions):

 
2013
 
2012
 
2011
Net income attributable to Ensco

$1,418.2

 

$1,169.7

 

$600.4

Net income allocated to non-vested share awards
(15.1
)
 
(12.3
)
 
(6.9
)
Net income attributable to Ensco shares

$1,403.1

 

$1,157.4

 

$593.5

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, 2013 (in millions):

 
2013
 
2012
 
2011
Weighted-average shares - basic
230.9

 
229.4

 
192.2

Potentially dilutive shares
.2

 
.3

 
.4

Weighted-average shares - diluted
231.1

 
229.7

 
192.6

Income from continuing operations attributable to Ensco for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):

 
2013
 
2012
 
2011
Income from continuing operations
$
1,432.9

 
$
1,222.2

 
$
607.8

Income from continuing operations attributable to noncontrolling interests
(9.7
)
 
(7.0
)
 
(5.2
)
Income from continuing operations attributable to Ensco
$
1,423.2

 
$
1,215.2

 
$
602.6

Acquisition Of Pride International, Inc. (Tables)
Business Acquisition, Pro Forma Information
(In millions, except per share amounts) 
 
 
2011*

Revenues
$
3,451.8

Net income
604.8

Earnings per share - basic
2.61

Earnings per share - diluted
2.60


* 
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)
The following fair value hierarchy table categorizes information regarding our net financial assets measured at fair value on a recurring basis as of December 31, 2013 and 2012 (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, 2013
 

 
 

 
 

 
 

Supplemental executive retirement plan assets
$
37.7

 
$

 
$

 
$
37.7

Derivatives, net

 
1.8

 

 
1.8

Total financial assets
$
37.7

 
$
1.8

 
$

 
$
39.5

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

The carrying values and estimated fair values of our debt instruments as of December 31, 2013 and 2012 were as follows (in millions):
 
 
December 31, 2013
 
December 31, 2012
 
 
Carrying
Value
 
Estimated
  Fair
Value
 
Carrying
Value
 
Estimated
  Fair
Value
 
 
 
 
 
 
 
 
 
4.70% Senior notes due 2021
 
$
1,477.2

 
$
1,596.9

 
$
1,474.7

 
$
1,715.6

6.875% Senior notes due 2020
 
1,024.8

 
1,086.7

 
1,040.6

 
1,138.3

3.25% Senior notes due 2016
 
996.5

 
1,045.8

 
995.1

 
1,068.9

8.50% Senior notes due 2019
 
600.5

 
635.8

 
616.4

 
661.7

7.875% Senior notes due 2040
 
382.6

 
410.5

 
383.8

 
423.9

7.20% Debentures due 2027
 
149.1

 
178.6

 
149.0

 
193.2

4.33% MARAD bonds, including current maturities, due 2016
 
78.9

 
79.7

 
112.3

 
121.6

6.36% MARAD bonds, including current maturities, due 2015
 
25.3

 
27.1

 
38.0

 
48.7

4.65% MARAD bonds, including current maturities, due 2020
 
31.5

 
35.2

 
36.0

 
43.9

Total 
 
$
4,766.4

 
$
5,096.3

 
$
4,845.9

 
$
5,415.8

Property And Equipment (Tables)
Schedule Of Property And Equipment
Property and equipment as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Drilling rigs and equipment
 
$
15,839.0

 
$
13,499.4

Other
 
101.0

 
89.1

Work in progress
 
1,558.5

 
2,148.6

 
 
$
17,498.5

 
$
15,737.1

Debt (Tables)
The carrying value of long-term debt as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
4.70% Senior notes due 2021
 
$
1,477.2

 
$
1,474.7

6.875% Senior notes due 2020
 
1,024.8

 
1,040.6

3.25% Senior notes due 2016
 
996.5

 
995.1

8.50% Senior notes due 2019
 
600.5

 
616.4

7.875% Senior notes due 2040
 
382.6

 
383.8

7.20% Debentures due 2027
 
149.1

 
149.0

4.33% MARAD bonds due 2016
 
78.9

 
112.3

6.36% MARAD bonds due 2015
 
25.3

 
38.0

4.65% MARAD bonds due 2020
 
31.5

 
36.0

Total debt
 
4,766.4

 
4,845.9

Less current maturities
 
(47.5
)
 
(47.5
)
Total long-term debt
 
$
4,718.9

 
$
4,798.4

The aggregate maturities of our debt, excluding net unamortized premiums of $283.7 million, as of December 31, 2013 were as follows (in millions):
2014
 
$
47.5

2015
 
47.5

2016
 
1,019.7

2017
 
4.5

2018
 
4.5

Thereafter
 
3,359.0

Total
 
$
4,482.7

Derivative Instruments (Tables)
Derivatives recorded at fair value on our consolidated balance sheets as of December 31, 2013 and 2012 consisted of the following (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
2013
 
2012
 
2013
 
2012
Derivatives Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
9.1

 
$
5.0

 
$
9.8

 
$
.3

Foreign currency forward contracts - non-current(2)
1.2

 
.5

 
.6

 

 
10.3

 
5.5

 
10.4

 
.3

Derivatives not Designated as Hedging Instruments
 

 
 

 
 

 
 

Foreign currency forward contracts - current(1)
2.5

 
.2

 
.6

 
.2

 
2.5

 
.2

 
.6

 
.2

Total
$
12.8

 
$
5.7

 
$
11.0

 
$
.5


(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, net of tax, on derivatives designated as cash flow hedges included in our consolidated statements of income and comprehensive income for each of the years in the three-year period ended December 31, 2013 were as follows (in millions):
 
(Loss) Gain Recognized in Other Comprehensive
Income ("OCI")
on Derivatives
  (Effective Portion)  
 
(Loss) Gain
Reclassified from
 AOCI into Income
(Effective Portion)(1)
 
(Loss) Gain Recognized
in Income on
Derivatives (Ineffective
Portion and Amount
Excluded from
Effectiveness Testing)(2)
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Interest rate lock contracts(3) 
$

 
$

 
$

 
$
(.4
)
 
$
(.5
)
 
$
(.5
)
 
$

 
$

 
$

Foreign currency forward contracts(4)
(5.8
)
 
8.7

 
.1

 
(1.6
)
 
.5

 
6.0

 
(.3
)
 
(.3
)
 
.3

Total
$
(5.8
)
 
$
8.7

 
$
.1

 
$
(2.0
)
 
$

 
$
5.5

 
$
(.3
)
 
$
(.3
)
 
$
.3

 
(1)
Changes in the fair value of cash flow hedges are recorded in 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 transaction.

(2) 
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.

(3) 
Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net in our consolidated statements of income.

(4) 
During the year ended December 31, 2013, $2.5 million of losses were reclassified from AOCI into contract drilling expense and $900,000 of gains were reclassified from AOCI into depreciation expense in our consolidated statement of income.
As of December 31, 2013, the estimated amount of net losses associated with derivatives, net of tax, that will be reclassified to earnings during the next 12 months was as follows (in millions):
Net unrealized (losses) to be reclassified to contract drilling expense
 
$
(1.7
)
Net realized gains to be reclassified to depreciation expense
 
.9

Net realized (losses) to be reclassified to interest expense
 
(.4
)
Net (losses) to be reclassified to earnings
 
$
(1.2
)
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, 2013 was as follows (in millions):
 
 Shares 
 
 
Par Value 
 
 
Additional
Paid-in
Capital

 
Retained
Earnings

 
AOCI 
 
 
Treasury
Shares  

 
Noncontrolling
Interest

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

Net income

 

 

 
1,418.2

 

 

 
9.7

Cash dividends paid

 

 

 
(525.6
)
 

 

 

Distributions to noncontrolling interests

 

 

 

 

 

 
(8.1
)
Shares issued in connection with share-based compensation plans, net
1.9

 
.2

 
21.8

 

 

 
(.1
)
 

Tax benefit from share-based compensation

 

 
.1

 

 

 

 

Repurchase of shares

 

 

 

 

 
(14.1
)
 

Share-based compensation cost

 

 
46.6

 

 

 

 

Net other comprehensive loss

 

 

 

 
(1.9
)
 

 

BALANCE, December 31, 2013
239.6

 
$
24.1

 
$
5,467.2

 
$
7,327.3

 
$
18.2

 
$
(45.2
)
 
$
7.3

Benefit Plans (Tables)
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, 2013 (in millions):
 
2013
 
2012
 
2011
Contract drilling
$
21.3

 
$
17.1

 
$
17.0

General and administrative
21.6

 
24.8

 
21.5

Non-vested share award related compensation expense included in operating expenses
42.9

 
41.9

 
38.5

Tax benefit
(5.4
)
 
(7.0
)
 
(6.9
)
Total non-vested share award related compensation expense included in net income
$
37.5

 
$
34.9

 
$
31.6

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, 2013:
 
2013
 
2012
 
2011
Weighted-average grant-date fair value of
  non-vested share awards granted (per share)
$
59.79

 
$
48.32

 
$
52.50

Total fair value of non-vested share awards
  vested during the period (in millions)
$
49.6

 
$
42.5

 
$
41.0

The following table summarizes non-vested share award activity for the year ended December 31, 2013 (shares in thousands): 
 
Shares
 
Weighted-Average
Grant-Date
Fair Value
Non-vested share awards as of December 31, 2012
2,491

 
$
46.52

Granted
1,018

 
59.79

Vested
(829
)
 
49.96

Forfeited
(184
)
 
49.16

Non-vested share awards as of December 31, 2013
2,496

 
$
52.95

The following table summarizes option related compensation expense recognized during each of the years in the three-year period ended December 31, 2013 (in millions):
 
2013
 
2012
 
2011
General and administrative
$
.8

 
$
1.6

 
$
2.5

Option related compensation expense included in operating expenses
.8

 
1.6

 
2.5

Tax benefit
(.1
)
 
(.3
)
 
(.5
)
Total option related compensation expense included in net income
$
.7

 
$
1.3

 
$
2.0

The following weighted-average assumptions were utilized in the Black-Scholes model for options granted during the year ended December 31, 2011:
 
 
2011
Risk-free interest rate
 
1.4
%
Expected term (in years)
 
3.7

Expected volatility
 
50.2
%
Dividend yield
 
2.6
%
The following table summarizes option activity for the year ended December 31, 2013 (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, 2012
1,346

 
$
46.05

 
 

 
 

Granted

 

 
 

 
 

Exercised
(506
)
 
43.96

 
 

 
 

Forfeited

 

 
 

 
 

Expired
(26
)
 
51.24

 
 

 
 

Outstanding as of December 31, 2013
814

 
$
47.18

 
2.5

 
$
9,065

Exercisable as of December 31, 2013
780

 
$
46.85

 
2.4

 
$
8,986

The following table summarizes the value of options granted and exercised during each of the years in the three-year period ended December 31, 2013:
 
2013
 
2012
 
2011
Weighted-average grant-date fair value of
options granted (per share)
$

 
$

 
$
19.05

Intrinsic value of options exercised during
the year (in millions)
$
8.7

 
$
17.8

 
$
17.2

The following table summarizes information about options outstanding as of December 31, 2013 (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
$21.54 - $40.99
 
247
 
3.1 years
 
$33.51
 
247
 
$33.51
41.18 - 54.30
 
229
 
3.5 years
 
43.77
 
217
 
43.22
55.34 - 60.74
 
338
 
1.3 years
 
59.50
 
316
 
59.79
 
 
814
 
2.5 years
 
$47.18
 
780
 
$46.85
Goodwill and Other Intangible Assets and Liabilities (Tables)
The carrying amount of goodwill as of December 31, 2013 is detailed below by reporting unit (in millions):
Floaters

$3,081.4

Jackups
192.6

Total

$3,274.0

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, 2013 and 2012 were as follows (in millions):
 
December 31, 2013
 
December 31, 2012
 
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

 
$
(88.3
)
 
$
120.7

 
$
209.0

 
$
(36.4
)
 
$
172.6

Amortization

 
(42.3
)
 
(42.3
)
 

 
(51.9
)
 
(51.9
)
Balance, end of period
$
209.0

 
$
(130.6
)
 
$
78.4

 
$
209.0

 
$
(88.3
)
 
$
120.7

 
 
 
 
 
 
 
 
 
 
 
 
Drilling contract intangible liabilities
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
278.0

 
$
(160.0
)
 
$
118.0

 
$
278.0

 
$
(92.8
)
 
$
185.2

Amortization

 
(48.9
)
 
(48.9
)
 

 
(67.2
)
 
(67.2
)
Balance, end of period
$
278.0

 
$
(208.9
)
 
$
69.1

 
$
278.0

 
$
(160.0
)
 
$
118.0

The estimated net (reduction) increase to future operating revenues related to the amortization of these intangible assets and liabilities as of December 31, 2013, is as follows (in millions):
2014
 
$
(4.3
)
2015
 
(4.5
)
2016
 
(.8
)
2017
 
.3

Total
 
$
(9.3
)
Income Taxes (Tables)
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, 2013 (in millions):
 
2013
 
2012
 
2011
Current income tax expense:
 

 
 

 
 

U.S.
$
97.3

 
$
42.8

 
$
40.7

Non-U.S.
122.1

 
183.6

 
94.2

 
219.4

 
226.4

 
134.9

Deferred income tax expense (benefit):
 

 
 

 
 

U.S.
14.7

 
32.0

 
(14.8
)
Non-U.S.
(8.5
)
 
(14.0
)
 
(4.7
)
 
6.2

 
18.0

 
(19.5
)
Total income tax expense
$
225.6

 
$
244.4

 
$
115.4

The following table summarizes significant components of deferred income tax assets (liabilities) as of December 31, 2013 and 2012 (in millions):
 
 
2013
 
2012
Deferred tax assets:
 
 
 
 

Foreign tax credits
 
$
159.0

 
$
173.4

Premium on long-term debt
 
111.9

 
124.0

Net operating loss carryforwards
 
104.0

 
87.8

Employee benefits, including share-based compensation
 
41.7

 
33.4

Deferred revenue
 
19.4

 
22.7

Other
 
19.8

 
24.5

Total deferred tax assets
 
455.8

 
465.8

Valuation allowance
 
(232.6
)
 
(227.1
)
Net deferred tax assets
 
223.2

 
238.7

Deferred tax liabilities:
 
 

 
 

Property and equipment
 
(453.6
)
 
(472.9
)
Intercompany transfers of property
 
(29.2
)
 
(32.2
)
Deferred costs
 
(11.4
)
 
(20.9
)
Other
 
(24.0
)
 
(31.3
)
Total deferred tax liabilities
 
(518.2
)
 
(557.3
)
Net deferred tax liability
 
$
(295.0
)
 
$
(318.6
)
Net current deferred tax asset
 
$
20.9

 
$
13.8

Net noncurrent deferred tax liability
 
(315.9
)
 
(332.4
)
Net deferred tax liability
 
$
(295.0
)
 
$
(318.6
)
Our consolidated effective income tax rate on continuing operations for each of the years in the three-year period ended December 31, 2013, differs from the U.K. statutory income tax rate as follows:
 
2013
 
2012
 
2011
U.K. statutory income tax rate
23.3
 %
 
24.5
 %
 
26.5
 %
Non-U.K. taxes
(12.9
)
 
(15.5
)
 
(19.6
)
Valuation allowance
1.8

 
2.6

 
6.8

Net expense associated with uncertain tax positions and other adjustments relating to prior years
.6

 
1.0

 
.8

Amortization of net deferred charges
   associated with intercompany rig sales
.3

 
.6

 
1.0

Income taxes associated with restructuring transactions

 
3.5

 

Other
.5

 

 
.4

Effective income tax rate
13.6
 %
 
16.7
 %
 
15.9
 %
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 and 2012 is as follows (in millions):
 
 
2013
 
2012
Balance, beginning of year
 
$
110.7

 
$
53.6

   Increases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
35.8

 
21.3

   Increases in unrecognized tax benefits as a result
      of tax positions taken during the current year
 
10.0

 
60.7

   Decreases in unrecognized tax benefits as a result
      of tax positions taken during prior years
 
(3.7
)
 
(.4
)
Settlements with taxing authorities
 

 
(4.1
)
Lapse of applicable statutes of limitations
 
(1.1
)
 
(20.8
)
Impact of foreign currency exchange rates
 

 
.4

Balance, end of year
 
$
151.7

 
$
110.7

Discontinued Operations (Tables)
Summary Of Rig Sales and Income From Discontinued Operations
The following table summarizes loss from discontinued operations for each of the years in the three-year period ended December 31, 2013 (in millions):
 
 
2013
 
2012
 
2011
Revenues
 
$

 
$
6.7

 
$
45.0

Operating expenses
 
6.5

 
44.3

 
44.4

Operating (loss) income
 
(6.5
)
 
(37.6
)
 
.6

Other income
 
.3

 
1.3

 
.2

Income tax benefit (expense)
 
2.3

 
7.3

 
(4.8
)
(Loss) gain on disposal of discontinued operations, net
 
(1.1
)
 
(16.5
)
 
1.8

Loss from discontinued operations
 
$
(5.0
)
 
$
(45.5
)
 
$
(2.2
)
We sold the following rigs during the three-year period ended December 31, 2013 (in millions):
Rig
 
Date of Rig Sale
 
Segment(1)
 
Net Proceeds
 
Net Book Value(2)
 
Pre-tax (Loss)/Gain(3)
Pride Pennsylvania
 
March 2013
 
Jackups
 
$
15.5

 
$
15.7

 
$
(.2
)
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

 
 
 
 
 
 
$
203.0

 
$
204.5

 
$
(1.5
)
(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, 2013 and were previously 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 (loss)/gain was included in loss from discontinued operations, net in our consolidated statement of income in the year of sale. Income tax expense of $900,000 and $10.9 million was recognized in connection with the sale of assets during the years ended December 31, 2013 and December 31, 2011, respectively. There was no net income tax expense recognized in connection with the sale of assets during the year ended December 31, 2012.
Commitments And Contingencies (Tables)
Capital Commitments
The following table summarizes the cumulative amount of contractual payments made as of December 31, 2013 for our rigs under construction and estimated timing of our remaining contractual payments (in millions): 
 
 
Cumulative Paid(1)
 
2014
 
2015
 
2016
 
Total(2)
ENSCO DS-8
 
161.4

 
383.2

 

 

 
544.6

ENSCO DS-9
 
157.4

 
373.2

 

 

 
530.6

ENSCO DS-10
 
103.0

 
103.0

 
307.4

 

 
513.4

ENSCO 110
 
41.0

 

 
166.1

 

 
207.1

ENSCO 122
 
49.0

 
202.0

 

 

 
251.0

ENSCO 123
 
53.5

 

 

 
213.8

 
267.3

 
 
$
565.3

 
$
1,061.4

 
$
473.5

 
$
213.8

 
$
2,314.0



(1)
Cumulative paid represents the aggregate amount of contractual payments made from commencement of the construction agreement through December 31, 2013.

(2)
Total commitments are based on fixed-price shipyard construction contracts, exclusive of costs associated with commissioning, systems integration testing, project management and capitalized interest.

Segment Information (Tables)

Year Ended December 31, 2013
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
Revenues
$
3,109.5

 
$
1,735.2

 
$
75.1

 
$
4,919.8

 
$

 
$
4,919.8

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
  Contract drilling
  (exclusive of depreciation)
1,509.4

 
834.6

 
58.5

 
2,402.5

 

 
2,402.5

  Depreciation
441.9

 
163.5

 

 
605.4

 
6.5

 
611.9

  General and administrative

 

 

 

 
146.8

 
146.8

Operating income (loss)
$
1,158.2

 
$
737.1

 
$
16.6

 
$
1,911.9

 
$
(153.3
)
 
$
1,758.6

Property and equipment, net
$
11,303.4

 
$
2,961.6

 
$

 
$
14,265.0

 
$
46.0

 
$
14,311.0

Capital expenditures
$
1,038.1

 
$
714.5

 
$

 
$
1,752.6

 
$
26.6

 
$
1,779.2


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

As of December 31, 2013, the geographic distribution of our drilling rigs by operating segment was as follows:
 
Floaters

 
Jackups

 
Total *

North & South America (excluding Brazil)
8
 
14
 
22
Middle East & Africa
6
 
10
 
16
Asia & Pacific Rim
3
 
10
 
13
Europe & Mediterranean
2
 
10
 
12
Brazil
7
 
 
7
Asia & Pacific Rim (under construction)
3
 
3
 
6
Total
29
 
47
 
76
 
*We provide management services on two rigs owned by third-parties not included in the table above. 
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
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
United States
$
1,724.9

 
$
1,291.3

 
$
753.8

 
$
4,617.8

 
$
4,525.9

 
$
3,450.6

Brazil
953.7

 
1,093.2

 
575.6

 
2,447.5

 
2,911.3

 
3,101.8

Angola
467.1

 
431.7

 
243.7

 
2,543.7

 
2,147.2

 
1,347.9

Other countries
1,774.1

 
1,484.5

 
1,224.6

 
4,702.0

 
3,561.2

 
4,521.6

Total
$
4,919.8

 
$
4,300.7

 
$
2,797.7

 
$
14,311.0

 
$
13,145.6

 
$
12,421.9

Supplemental Financial Information (Tables)
Accounts receivable, net, as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Trade
 
$
869.8

 
$
812.4

Other
 
14.3

 
18.2

 
 
884.1

 
830.6

Allowance for doubtful accounts
 
(28.4
)
 
(19.2
)
 
 
$
855.7

 
$
811.4

Other current assets as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Inventory
 
$
256.4

 
$
207.8

Prepaid taxes
 
88.1

 
62.2

Short-term investments
 
50.0

 
50.0

Deferred costs
 
47.4

 
46.9

Deferred tax assets
 
23.1

 
14.6

Prepaid expenses
 
18.5

 
20.3

Derivative assets
 
11.6

 
5.2

Assets held for sale
 
8.6

 
14.2

Other
 
10.2

 
4.2

 
 
$
513.9

 
$
425.4

Other assets, net, as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Intangible assets
 
$
83.8

 
$
143.3

Deferred costs
 
59.1

 
45.2

Unbilled receivables
 
51.9

 
77.1

Prepaid taxes on intercompany transfers of property
 
50.2

 
58.3

Supplemental executive retirement plan assets
 
37.7

 
29.8

Warranty and other claim receivables
 
30.6

 
30.6

Deferred tax assets
 
25.2

 
19.3

Wreckage and debris removal receivables
 
.5

 
13.2

Other
 
13.7

 
5.0

 
 
$
352.7

 
$
421.8

Accrued liabilities and other as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Personnel costs
 
$
242.0

 
$
231.1

Deferred revenue
 
169.8

 
146.9

Taxes
 
84.2

 
86.9

Accrued interest
 
68.0

 
67.9

Advance payment received on sale of assets
 
33.0

 

Customer pre-payments
 
20.0

 

Wreckage and debris removal
 

 
9.0

Other
 
41.7

 
42.6

 
 
$
658.7

 
$
584.4

Other liabilities as of December 31, 2013 and 2012 consisted of the following (in millions):
 
 
2013
 
2012
Deferred revenue
 
$
217.6

 
$
224.5

Unrecognized tax benefits (inclusive of interest and penalties)

 
148.0

 
129.6

Intangible liabilities
 
69.1

 
118.0

Supplemental executive retirement plan liabilities
 
40.5

 
33.3

Personnel costs
 
37.2

 
31.6

Other
 
33.3

 
36.4

 
 
$
545.7

 
$
573.4

Repair and maintenance expense related to continuing operations for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
Repair and maintenance expense
 
$
374.4

 
$
344.9

 
$
263.7

Net cash provided by operating activities of continuing operations attributable to the net change in operating assets and liabilities for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
(Increase) decrease in other assets
 
$
(80.7
)
 
$
80.1

 
$
(14.5
)
(Decrease) increase in liabilities
 
(22.9
)
 
319.0

 
(13.2
)
Decrease (increase) in accounts receivable
 
1.1

 
28.1

 
(244.8
)
 
 
$
(102.5
)
 
$
427.2

 
$
(272.5
)
Cash paid for interest and income taxes for each of the years in the three-year period ended December 31, 2013 was as follows (in millions):
 
 
2013
 
2012
 
2011
Interest, net of amounts capitalized
 
$
182.2

 
$
150.7

 
$
28.6

Income taxes
 
221.8

 
103.5

 
123.9

Guarantee Of Registered Securities (Tables)
ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 2013
(in millions)
 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-guarantor Subsidiaries of Ensco  
 
Consolidating Adjustments
 
Total  
OPERATING REVENUES
$
35.0

 
$
149.4

 
$

 
$
5,042.8

 
$
(307.4
)
 
$
4,919.8

OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
27.5

 
149.4

 

 
2,533.0

 
(307.4
)
 
2,402.5

Depreciation
.3

 
4.0

 

 
607.6

 

 
611.9

General and administrative
63.5

 
.5

 

 
82.8

 

 
146.8

OPERATING (LOSS) INCOME
(56.3
)
 
(4.5
)
 

 
1,819.4

 

 
1,758.6

OTHER (EXPENSE) INCOME, NET
(65.6
)
 
(9.4
)
 
(27.9
)
 
2.8

 

 
(100.1
)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(121.9
)
 
(13.9
)

(27.9
)

1,822.2




1,658.5

INCOME TAX PROVISION

 
92.5

 

 
133.1

 

 
225.6

DISCONTINUED OPERATIONS, NET

 

 

 
(5.0
)
 

 
(5.0
)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
1,540.1

 
366.2

 
111.6

 

 
(2,017.9
)
 

NET INCOME
1,418.2

 
259.8


83.7


1,684.1


(2,017.9
)

1,427.9

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(9.7
)
 

 
(9.7
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
1,418.2

 
$
259.8


$
83.7


$
1,674.4


$
(2,017.9
)

$
1,418.2


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 FROM CONTINUING OPERATIONS 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 COMPREHENSIVE INCOME
Year Ended December 31, 2013
(in millions)
 
 Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
1,418.2

 
$
259.8

 
$
83.7

 
$
1,684.1

 
$
(2,017.9
)
 
$
1,427.9

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

 
(5.8
)
 

 

 

 
(5.8
)
Reclassification of net losses on derivative instruments from other comprehensive income into net income

 
2.0

 

 

 

 
2.0

Other

 

 

 
1.9

 

 
1.9

NET OTHER COMPREHENSIVE (LOSS) INCOME

 
(3.8
)
 

 
1.9

 

 
(1.9
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,418.2

 
256.0

 
83.7

 
1,686.0

 
(2,017.9
)
 
1,426.0

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(9.7
)
 

 
(9.7
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
1,418.2

 
$
256.0

 
$
83.7

 
$
1,676.3

 
$
(2,017.9
)
 
$
1,416.3



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE 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
 
 
 
 
 
 
 
 
 
 
 
 
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

 
6.3

 

 
2.4

 

 
8.7

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

 
.2

 

 
(.2
)
 

 

Other

 

 

 
2.8

 

 
2.8

NET OTHER COMPREHENSIVE INCOME

 
6.5

 

 
5.0

 

 
11.5

 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
1,169.7

 
262.7

 
189.2

 
1,424.6

 
(1,858.0
)
 
1,188.2

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(7.0
)
 

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

 
$
262.7

 
$
189.2

 
$
1,417.6

 
$
(1,858.0
)
 
$
1,181.2




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE 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
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
600.4

 
$
220.5

 
$
119.7

 
$
748.2

 
$
(1,083.2
)
 
$
605.6

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

 
(4.2
)
 

 
4.3

 

 
.1

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

 
.2

 

 
(5.7
)
 

 
(5.5
)
Other

 

 

 
2.9

 

 
2.9

NET OTHER COMPREHENSIVE (LOSS) INCOME

 
(4.0
)
 

 
1.5

 

 
(2.5
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
600.4

 
216.5

 
119.7

 
749.7

 
(1,083.2
)
 
603.1

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(5.2
)
 

 
(5.2
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
600.4

 
$
216.5

 
$
119.7

 
$
744.5

 
$
(1,083.2
)
 
$
597.9

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2013
(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
$
46.5

 
$
.5

 
$
4.9

 
$
113.7

 
$

 
$
165.6

Accounts receivable, net 

 

 

 
855.7

 

 
855.7

Accounts receivable from
  affiliates
1,235.0

 
213.8

 
5.5

 
4,169.2

 
(5,623.5
)
 

Other
3.2

 
61.3

 

 
449.4

 

 
513.9

 Total current assets
1,284.7

 
275.6

 
10.4

 
5,588.0

 
(5,623.5
)
 
1,535.2

PROPERTY AND EQUIPMENT, AT COST
2.1

 
34.3

 

 
17,462.1

 

 
17,498.5

Less accumulated depreciation
1.5

 
26.5

 

 
3,159.5

 

 
3,187.5

Property and equipment, net  
.6

 
7.8

 

 
14,302.6

 

 
14,311.0

GOODWILL

 

 

 
3,274.0

 

 
3,274.0

DUE FROM AFFILIATES
4,876.8

 
4,236.0

 
1,898.0

 
5,069.7

 
(16,080.5
)
 

INVESTMENTS IN AFFILIATES
13,830.1

 
4,868.6

 
4,092.2

 

 
(22,790.9
)
 

OTHER ASSETS, NET 
8.8

 
60.1

 

 
283.8

 

 
352.7

 
$
20,001.0

 
$
9,448.1

 
$
6,000.6

 
$
28,518.1

 
$
(44,494.9
)
 
$
19,472.9

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
   Accounts payable and accrued
     liabilities
$
31.5

 
$
9.1

 
$
34.2

 
$
925.0

 
$

 
$
999.8

Accounts payable to affiliates
3,666.1

 
549.7

 

 
1,407.7

 
(5,623.5
)
 

Current maturities of long-term
  debt

 

 

 
47.5

 

 
47.5

Total current liabilities
3,697.6

 
558.8

 
34.2

 
2,380.2

 
(5,623.5
)
 
1,047.3

DUE TO AFFILIATES 
1,030.8

 
2,760.4

 
1,331.1

 
10,958.2

 
(16,080.5
)
 

LONG-TERM DEBT 
2,473.7

 
149.1

 
2,007.8

 
88.3

 

 
4,718.9

DEFERRED INCOME TAXES

 
358.3

 

 
3.8

 

 
362.1

OTHER LIABILITIES

 
2.3

 
8.7

 
534.7

 

 
545.7

ENSCO SHAREHOLDERS' EQUITY 
12,798.9

 
5,619.2

 
2,618.8

 
14,545.6

 
(22,790.9
)
 
12,791.6

NONCONTROLLING INTERESTS

 

 

 
7.3

 

 
7.3

Total equity
12,798.9

 
5,619.2

 
2,618.8

 
14,552.9

 
(22,790.9
)
 
12,798.9

      
$
20,001.0

 
$
9,448.1

 
$
6,000.6

 
$
28,518.1

 
$
(44,494.9
)
 
$
19,472.9

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 STATEMENTS OF CASH FLOWS
Year Ended December 31, 2013
(in millions)
 
Ensco plc
 
ENSCO International Incorporated  
 
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
$
(114.8
)
 
$
(128.7
)
 
$
(62.9
)
 
$
2,286.7

 
$

 
$
1,980.3

INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Additions to property and equipment 

 

 

 
(1,779.2
)
 

 
(1,779.2
)
Purchases of short-term investments

 

 

 
(50.0
)
 

 
(50.0
)
Maturities of short-term investments

 

 

 
50.0

 

 
50.0

Advance payment received on sale of assets

 

 

 
33.0

 

 
33.0

Other

 
(4.1
)
 

 
10.1

 

 
6.0

Net cash used in investing activities of continuing operations 

 
(4.1
)
 

 
(1,736.1
)
 

 
(1,740.2
)
FINANCING ACTIVITIES
 
 
 
 
 
 
 

 
 

 


Cash dividends paid
(525.6
)
 

 

 

 

 
(525.6
)
Reduction of long-term
  borrowings

 

 

 
(47.5
)
 

 
(47.5
)
Proceeds from exercise of share
  options
22.3

 

 

 

 

 
22.3

Debt financing costs

 
(4.6
)
 

 

 

 
(4.6
)
Advances from (to) affiliates
407.2

 
136.2

 
(17.2
)
 
(526.2
)
 

 

Other
(14.4
)
 

 

 
(7.3
)
 

 
(21.7
)
      Net cash (used in) provided by
         financing activities
(110.5
)
 
131.6

 
(17.2
)
 
(581.0
)
 

 
(577.1
)
DISCONTINUED OPERATIONS
 
 
 
 
 
 
 
 
 
 


Operating activities

 

 

 
.2

 

 
.2

Investing activities

 

 

 
15.5

 

 
15.5

Net cash provided by discontinued operations

 

 


15.7



 
15.7

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(.2
)
 

 
(.2
)
DECREASE IN CASH AND CASH EQUIVALENTS
(225.3
)
 
(1.2
)

(80.1
)

(14.9
)



(321.5
)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
271.8

 
1.7

 
85.0

 
128.6

 

 
487.1

CASH AND CASH EQUIVALENTS, END OF YEAR
$
46.5

 
$
.5


$
4.9


$
113.7


$


$
165.6



ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
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 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
)
Purchases of short-term investments

 

 

 
(90.0
)
 

 
(90.0
)
Maturities of short-term investments

 

 

 
44.5

 

 
44.5

Other
(.3
)
 
.4

 

 
3.1

 

 
3.2

   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
)
Commercial paper borrowings,
  net
(125.0
)
 

 

 

 

 
(125.0
)
Equity issuance reimbursement
66.7

 

 

 

 

 
66.7

Reduction of long-term
  borrowings

 

 

 
(47.5
)
 

 
(47.5
)
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
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

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
35.2

 
1.7


62.4


(42.9
)



56.4

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
236.6

 

 
22.6

 
171.5

 

 
430.7

CASH AND CASH EQUIVALENTS, END OF YEAR
$
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 Incorporated
 
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
)
Purchases of short-term investments

 

 

 
(4.5
)
 

 
(4.5
)
Other

 
(6.1
)
 

 
11.4

 

 
5.3

   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 cost
(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
(1,956.1
)
 
(34.5
)
 
170.6

 
1,820.0

 

 

Other
(10.6
)
 

 

 
(5.1
)
 

 
(15.7
)
Net cash provided by (used in) financing activities
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 (used in) provided by discontinued operations

 
(11.1
)



40.2



 
29.1

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(.8
)
 

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

 
(19.1
)

22.6


(856.7
)


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

 
19.1

 

 
1,028.2

 

 
1,050.7

CASH AND CASH EQUIVALENTS, END
       OF YEAR
$
236.6

 
$


$
22.6


$
171.5


$

 
$
430.7

Unaudited Quarterly Financial Data (Tables)
Summary Of Unaudited Quarterly Consolidated Income Statement
The following tables summarize our unaudited quarterly consolidated income statement data for the years ended December 31, 2013 and 2012 (in millions, except per share amounts):

2013
First 
Quarter  
     
 
Second
Quarter  
     
 
Third
Quarter  
     
 
Fourth 
Quarter  
     
 
Year 

Operating revenues
$
1,149.9

 
$
1,248.1

 
$
1,266.2

 
$
1,255.6

 
$
4,919.8

Operating expenses
 
 
 

 
 

 
 

 
 

Contract drilling (exclusive of depreciation)
560.8

 
606.8

 
619.2

 
615.7

 
2,402.5

Depreciation
149.0

 
152.9

 
153.3

 
156.7

 
611.9

General and administrative
37.8

 
36.4

 
37.4

 
35.2

 
146.8

Operating income
402.3

 
452.0

 
456.3

 
448.0

 
1,758.6

Other expense, net
(29.8
)
 
(39.8
)
 
(1.6
)
 
(28.9
)
 
(100.1
)
Income from continuing operations before income taxes
372.5

 
412.2

 
454.7

 
419.1

 
1,658.5

Provision for income taxes
51.7

 
49.6

 
73.3

 
51.0

 
225.6

Income from continuing operations
320.8

 
362.6

 
381.4

 
368.1

 
1,432.9

Loss from discontinued operations, net
(.9
)
 

 

 
(4.1
)
 
(5.0
)
Net income
319.9

 
362.6

 
381.4

 
364.0

 
1,427.9

Net income attributable to noncontrolling interests
(2.8
)
 
(1.7
)
 
(2.6
)
 
(2.6
)
 
(9.7
)
Net income attributable to Ensco
$
317.1

 
$
360.9

 
$
378.8

 
$
361.4

 
$
1,418.2

Earnings (loss) per share – basic
 

 
 

 
 

 
 

 


Continuing operations
$
1.37

 
$
1.55

 
$
1.62

 
$
1.57

 
$
6.10

Discontinued operations
(0.01
)
 

 

 
(0.02
)
 
(0.02
)
 
$
1.36

 
$
1.55

 
$
1.62

 
$
1.55

 
$
6.08

Earnings (loss) per share – diluted
 

 
 

 
 

 
 

 


Continuing operations
$
1.36

 
$
1.55

 
$
1.62

 
$
1.56

 
$
6.09

Discontinued operations

 

 

 
(0.02
)
 
(0.02
)
 
$
1.36

 
$
1.55

 
$
1.62

 
$
1.54

 
$
6.07

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

Description Of The Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
continent
country
segments
service
Dec. 31, 2012
Dec. 31, 2011
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of rigs under construction
 
 
Number of different countries having drilling contracts spanning
20 
 
 
Number of different continents having drilling contracts
 
 
Net foreign currency exchange gains (losses)
$ 6.4 
$ (3.5)
$ 16.9 
Short-term investments
50.0 
50.0 
 
Number of operating segments
 
 
Number of reportable segments
 
 
Number of services
 
 
Deferred mobilization revenue
76.8 
52.6 
 
Deferred revenue
273.6 
301.9 
 
Antidilutive share options excluded from computation of diluted earnings per share
0.3 
0.4 
 
Deferred Mobilization Costs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Other assets
66.6 
54.5 
 
Deferred Regulatory Certification And Compliance Costs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Other assets
$ 18.3 
$ 14.4 
 
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 
 
 
Offshore Drilling Rigs [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
10 
 
 
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
 
 
Jackup Rigs [Member]
 
 
 
Description Of The Business And Summary Of Significant Accounting Policies [Line Items]
 
 
 
Number of contract drilling rigs
45 
 
 
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 
 
 
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Ensco
$ 361.4 
$ 378.8 
$ 360.9 
$ 317.1 
$ 219.5 
$ 343.5 
$ 341.3 
$ 265.4 
$ 1,418.2 
$ 1,169.7 
$ 600.4 
Net income allocated to non-vested share awards
 
 
 
 
 
 
 
 
(15.1)
(12.3)
(6.9)
Net income attributable to Ensco shares
 
 
 
 
 
 
 
 
$ 1,403.1 
$ 1,157.4 
$ 593.5 
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, 2013
Dec. 31, 2012
Dec. 31, 2011
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
Weighted-average shares - basic
230.9 
229.4 
192.2 
Potentially dilutive share options
0.2 
0.3 
0.4 
Weighted-average shares - diluted
231.1 
229.7 
192.6 
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$ 368.1 
$ 381.4 
$ 362.6 
$ 320.8 
$ 243.3 
$ 361.2 
$ 337.2 
$ 280.5 
$ 1,432.9 
$ 1,222.2 
$ 607.8 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(2.6)
(2.6)
(1.7)
(2.8)
(1.7)
(1.9)
(1.4)
(2.0)
(9.7)
(7.0)
(5.2)
Income from continuing operations attributable to Ensco
 
 
 
 
 
 
 
 
$ 1,423.2 
$ 1,215.2 
$ 602.6 
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Description Of The Business And Summary Of Significant Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from discontinued operations
$ (4.1)
$ 0 
$ 0 
$ (0.9)
$ (22.1)
$ (15.8)
$ 5.5 
$ (13.1)
$ (5.0)
$ (45.5)
$ (2.2)
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
Pride International Inc. [Member]
 
Business Acquisition [Line Items]
 
Revenues
$ 3,451.8 1
Net income
604.8 1
Earnings per share - basic (in dollars per share)
$ 2.61 1
Earnings per share - diluted (in dollars per share)
$ 2.60 1
Merger-related costs
$ 157.6 
Fair Value Measurements (Narrative) (Details) (Supplemental Executive Retirement Plans [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
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
$ 6.2 
$ 2.8 
$ (0.3)
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, 2013
Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Supplemental executive retirement plan assets
$ 37.7 
$ 29.8 
Derivatives, net
1.8 
5.2 
Total financial assets
39.5 
35.0 
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Supplemental executive retirement plan assets
37.7 
29.8 
Derivatives, net
Total financial assets
37.7 
29.8 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Supplemental executive retirement plan assets
Derivatives, net
1.8 
5.2 
Total financial assets
1.8 
5.2 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
 
 
Supplemental executive retirement plan assets
Derivatives, net
Total financial assets
$ 0 
$ 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, 2013
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
7.20% Debentures due 2027 [Member]
Dec. 31, 2013
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2013
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2013
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2013
Carrying Value [Member]
Dec. 31, 2012
Carrying Value [Member]
Dec. 31, 2013
Carrying Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
Carrying Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
Carrying Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
Carrying Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
Carrying Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
Carrying Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
Carrying Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
Carrying Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
Carrying Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
Carrying Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
Carrying Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
Carrying Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2013
Carrying Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2012
Carrying Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2013
Carrying Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2012
Carrying Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2013
Carrying Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2012
Carrying Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
4.33% MARAD bonds, including current maturities, due 2016 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2012
Estimated Fair Value [Member]
6.36% MARAD bonds, including current maturities, due 2015 [Member]
Dec. 31, 2013
Estimated Fair Value [Member]
4.65% MARAD bonds, including current maturities, due 2020 [Member]
Dec. 31, 2012
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
 
 
 
 
 
 
 
 
 
$ 4,766.4 
$ 4,845.9 
$ 1,477.2 
$ 1,474.7 
$ 1,024.8 
$ 1,040.6 
$ 996.5 
$ 995.1 
$ 600.5 
$ 616.4 
$ 382.6 
$ 383.8 
$ 149.1 
$ 149.0 
$ 78.9 
$ 112.3 
$ 25.3 
$ 38.0 
$ 31.5 
$ 36.0 
$ 5,096.3 
$ 5,415.8 
$ 1,596.9 
$ 1,715.6 
$ 1,086.7 
$ 1,138.3 
$ 1,045.8 
$ 1,068.9 
$ 635.8 
$ 661.7 
$ 410.5 
$ 423.9 
$ 178.6 
$ 193.2 
$ 79.7 
$ 121.6 
$ 27.1 
$ 48.7 
$ 35.2 
$ 43.9 
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, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 17,498.5 
$ 15,737.1 
Drilling rigs and equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Increase in drilling rigs and equipment
2,339.6 
 
Property and equipment
15,839.0 
13,499.4 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Increase in drilling rigs and equipment
(590.1)
 
Property and equipment
1,558.5 
2,148.6 
Work in progress [Member] |
Jackup Rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
627.2 
157.4 
Work in progress [Member] |
Ultra Deepwater Drillships [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
513.4 
1,100.0 
Work in progress [Member] |
Premium Jackup Rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
43.7 
 
Work in progress [Member] |
Ultra Deepwater Semisubmersible Rigs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
 
$ 603.9 
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 17,498.5 
$ 15,737.1 
Drilling rigs and equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
15,839.0 
13,499.4 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
101.0 
89.1 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment
$ 1,558.5 
$ 2,148.6 
Debt (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Senior Notes [Member]
Dec. 31, 2013
Commercial Paper Program [Member]
Dec. 31, 2012
Commercial Paper Program [Member]
Dec. 31, 2013
Debentures Due 2027 [Member]
Dec. 31, 2013
ENSCO 7500 [Member]
Bonds Due 2015 And 2020 [Member]
Dec. 31, 2013
ENSCO 105 [Member]
Bonds Due 2015 And 2020 [Member]
Dec. 31, 2013
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
6.875% Senior notes due 2020 [Member]
Acquired Debt [Member]
Dec. 31, 2013
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
8.50% Senior notes due 2019 [Member]
Acquired Debt [Member]
Dec. 31, 2013
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
7.875% Senior notes due 2040 [Member]
Acquired Debt [Member]
Dec. 31, 2013
4.33% MARAD bonds due 2016 [Member]
Dec. 31, 2013
4.33% MARAD bonds due 2016 [Member]
Acquired Debt [Member]
Dec. 31, 2013
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
3.25% Senior notes due 2016 [Member]
Senior Notes [Member]
Dec. 31, 2013
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
4.70% Senior notes due 2021 [Member]
Senior Notes [Member]
May 7, 2013
Five Year Credit Facility Member
Dec. 31, 2013
Five Year Credit Facility Member
Mar. 31, 2013
Five Year Credit Facility Member
Dec. 31, 2012
Five Year Credit Facility Member
May 7, 2013
Base Rate [Member]
Five Year Credit Facility Member
May 7, 2013
London Interbank Offered Rate (LIBOR) [Member]
Five Year Credit Facility Member
May 7, 2013
Maximum [Member]
Five Year Credit Facility Member
May 7, 2013
Three Hundred Sixty Four Day Credit Facility [Member]
Five Year Credit Facility Member
Dec. 31, 2012
Three Hundred Sixty Four Day Credit Facility [Member]
Five Year Credit Facility Member
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.125% 
 
 
 
 
 
 
 
 
Unsecured debt instruments issued
 
 
 
 
 
 
$ 150,000,000.0 
 
$ 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% 
 
 
 
 
 
 
 
 
 
Commercial paper, capacity
 
 
 
 
1,000,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000,000.0 
 
 
 
 
 
 
 
 
Aggregate amount of unsecured debt instrument
 
 
 
 
 
 
 
190,000,000.0 
 
 
 
 
 
 
 
 
 
 
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% 
 
 
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 
 
 
 
 
 
 
364 days 
 
Maximum days of maturity of notes
 
 
 
 
364 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument maturity term, years
 
 
 
 
 
 
 
15 
17 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of right to increase the commitment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,500,000,000.0 
2,000,000,000.0 
1,450,000,000.00 
 
 
 
 
450,000,000 
 
Maximum percentage of debt to total capitalization ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
Amounts outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.125% 
1.125% 
 
 
 
Debt instrument maturity period
 
 
 
 
 
 
 
 
 
2020 
 
2019 
 
2040 
 
2016 
 
2016 
2016 
2021 
2021 
 
 
 
 
 
 
 
 
 
Weighted-average interest rate
 
 
 
 
0.35% 
0.44% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unamortized premiums
283,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
158,800,000 
123,600,000 
95,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
$ 67,700,000 
$ 105,800,000 
$ 80,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Schedule Of Long-Term Debt Instruments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
7.20% Debentures due 2027 [Member]
Dec. 31, 2013
4.33% MARAD bonds due 2016 [Member]
Dec. 31, 2013
6.36% MARAD bonds due 2015 [Member]
Dec. 31, 2013
4.65% MARAD bonds due 2020 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
4.70% Senior notes due 2021 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
6.875% Senior notes due 2020 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
3.25% Senior notes due 2016 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
8.50% Senior notes due 2019 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
7.875% Senior notes due 2040 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
7.20% Debentures due 2027 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
4.33% MARAD bonds due 2016 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
4.33% MARAD bonds due 2016 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
6.36% MARAD bonds due 2015 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
6.36% MARAD bonds due 2015 [Member]
Dec. 31, 2013
Reported Value Measurement [Member]
4.65% MARAD bonds due 2020 [Member]
Dec. 31, 2012
Reported Value Measurement [Member]
4.65% MARAD bonds due 2020 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
$ 4,766.4 
$ 4,845.9 
$ 1,477.2 
$ 1,474.7 
$ 1,024.8 
$ 1,040.6 
$ 996.5 
$ 995.1 
$ 600.5 
$ 616.4 
$ 382.6 
$ 383.8 
$ 149.1 
$ 149.0 
$ 78.9 
$ 112.3 
$ 25.3 
$ 38.0 
$ 31.5 
$ 36.0 
Total
4,766.4 
4,845.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current maturities
(47.5)
(47.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 4,718.9 
$ 4,798.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Aggregate Maturities Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Debt Instruments [Abstract]
 
2013
$ 47.5 
2014
47.5 
2015
1,019.7 
2016
4.5 
2017
4.5 
Thereafter
3,359.0 
Total
$ 4,482.7 
Derivative Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
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
$ 3.6 
$ 1.5 
$ 0.5 
Cash Flow Hedges [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(2.0)
5.5 
Foreign Currency Derivative [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Net foreign currency derivative asset (liability) included on balance sheet
1.8 
5.2 
 
Foreign Exchange Forward [Member] |
Cash Flow Hedges [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(1.6)1 2
0.5 1 2
6.0 1 2
Foreign Exchange [Member] |
Cash Flow Hedges [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Aggregate cash flow hedges outstanding
376.1 
 
 
British pounds
175.1 
 
 
Brazilian reais
110.8 
 
 
Singapore dollars
35.3 
 
 
Australian dollars
23.6 
 
 
Euros
22.3 
 
 
Other currencies
9.0 
 
 
Foreign Exchange [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Aggregate cash flow hedges outstanding
208.9 
 
 
British pounds
25.8 
 
 
Brazilian reais
20.8 
 
 
Australian dollars
16.5 
 
 
Euros
97.9 
 
 
Indonesian rupiah
13.9 
 
 
Swiss francs
21.4 
 
 
Other currencies
12.6 
 
 
Contract Drilling [Member] |
Foreign Exchange Forward [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(2.5)
 
 
Depreciation Expense [Member] |
Foreign Exchange Forward [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ 0.9 
 
 
Derivative Instruments (Schedule Of Derivatives At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
Total fair value of derivative assets
$ 12.8 
$ 5.7 
Total fair value of derivative liabilities
11.0 
0.5 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
10.3 
5.5 
Total fair value of derivative liabilities
10.4 
0.3 
Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
9.1 1
5.0 1
Total fair value of derivative liabilities
9.8 1
0.3 1
Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Non-Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
1.2 2
0.5 2
Total fair value of derivative liabilities
0.6 2
2
Not Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
2.5 
0.2 
Total fair value of derivative liabilities
0.6 
0.2 
Not Designated as Hedging Instrument [Member] |
Foreign Currency Forward Contracts - Current [Member]
 
 
Derivative [Line Items]
 
 
Total fair value of derivative assets
2.5 1
0.2 1
Total fair value of derivative liabilities
$ 0.6 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, 2013
Dec. 31, 2012
Dec. 31, 2011
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
$ (5.8)
$ 8.7 
$ 0.1 
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
(2.0)
5.5 
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(0.3)
(0.3)
0.3 
Interest Rate Lock Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
1
1
1
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
(0.4)1 2
(0.5)1 2
(0.5)1 2
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
1 3
1 3
1 3
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)
(5.8)4
8.7 4
0.1 4
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
(1.6)2 4
0.5 2 4
6.0 2 4
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
$ (0.3)3 4
$ (0.3)3 4
$ 0.3 3 4
Derivative Instruments (Schedule Of Estimated Amount Of Net Gains Associated With Derivatives) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
Net unrealized gains to be reclassified to contract drilling expense
$ (1.7)
Net realized gains to be reclassified to depreciation expense
0.9 
Net realized (losses) to be reclassified to interest expense
(0.4)
Net gains to be reclassified to earnings
$ (1.2)
Shareholders' Equity (Narrative) (Details) (USD $)
0 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2013
Stockholders' Equity Note [Abstract]
 
 
Stock Repurchase Program, Authorized Amount
 
$ 2,000,000,000.0 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
35,000,000.0 
35,000,000.0 
Stock Repurchased During Period, Shares
 
Shareholders' Equity (Schedule Of Activity In Our Various Shareholders' Equity) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
$ 11,852.1 
 
 
 
 
$ 11,852.1 
 
 
Net income
364.0 
381.4 
362.6 
319.9 
221.2 
345.4 
342.7 
267.4 
1,427.9 
1,176.7 
605.6 
Equity issuance and financing costs
 
 
 
 
 
 
 
 
(66.7)
70.5 
Net other comprehensive income (loss)
 
 
 
 
 
 
 
 
(1.9)
11.5 
(2.5)
BALANCE
12,798.9 
 
 
 
11,852.1 
 
 
 
12,798.9 
11,852.1 
 
Common Stock [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE, shares
 
 
 
237.7 
 
 
 
235.9 
237.7 
235.9 
150.1 
BALANCE
 
 
 
23.9 
 
 
 
23.7 
23.9 
23.7 
15.1 
Shares issued under share-based compensation plans, net, shares
 
 
 
 
 
 
 
 
1.9 
1.8 
 
Shares issued under share-based compensation plans, net
 
 
 
 
 
 
 
 
0.2 
0.2 
 
Shares issued in connection with the Merger, shares
 
 
 
 
 
 
 
 
 
 
85.8 
Shares issued in connection with the Merger
 
 
 
 
 
 
 
 
 
 
8.6 
BALANCE, shares
239.6 
 
 
 
237.7 
 
 
 
239.6 
237.7 
235.9 
BALANCE
24.1 
 
 
 
23.9 
 
 
 
24.1 
23.9 
23.7 
Additional Paid-In Capital [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
5,398.7 
 
 
 
5,253.0 
5,398.7 
5,253.0 
637.1 
Shares issued under share-based compensation plans, net
 
 
 
 
 
 
 
 
21.8 
35.3 
39.7 
Shares issued in connection with the Merger
 
 
 
 
 
 
 
 
 
 
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)
Tax benefit (deficiency) from share-based compensation
 
 
 
 
 
 
 
 
0.1 
(1.0)
0.5 
Share-based compensation cost
 
 
 
 
 
 
 
 
46.6 
44.7 
41.9 
BALANCE
5,467.2 
 
 
 
5,398.7 
 
 
 
5,467.2 
5,398.7 
5,253.0 
Retained Earnings [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
6,434.7 
 
 
 
5,613.1 
6,434.7 
5,613.1 
5,305.0 
Net income
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
Cash dividends paid
 
 
 
 
 
 
 
 
(525.6)
(348.1)
(292.3)
BALANCE
7,327.3 
 
 
 
6,434.7 
 
 
 
7,327.3 
6,434.7 
5,613.1 
AOCI [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
20.1 
 
 
 
8.6 
20.1 
8.6 
11.1 
Net other comprehensive income (loss)
 
 
 
 
 
 
 
 
(1.9)
11.5 
(2.5)
BALANCE
18.2 
 
 
 
20.1 
 
 
 
18.2 
20.1 
8.6 
Treasury Shares [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
(31.0)
 
 
 
(19.1)
(31.0)
(19.1)
(8.8)
Shares issued under share-based compensation plans, net
 
 
 
 
 
 
 
 
(0.1)
(0.1)
0.2 
Repurchase of shares
 
 
 
 
 
 
 
 
(14.1)
(11.8)
10.5 
BALANCE
(45.2)
 
 
 
(31.0)
 
 
 
(45.2)
(31.0)
(19.1)
Noncontrolling Interest [Member]
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
BALANCE
 
 
 
5.7 
 
 
 
5.2 
5.7 
5.2 
5.5 
Net income
 
 
 
 
 
 
 
 
9.7 
7.0 
5.2 
Distributions to noncontrolling interests
 
 
 
 
 
 
 
 
(8.1)
(6.5)
(5.5)
BALANCE
$ 7.3 
 
 
 
$ 5.7 
 
 
 
$ 7.3 
$ 5.7 
$ 5.2 
Benefit Plans (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2005
Long-Term Incentive Plan (LTIP) [Member]
Dec. 31, 2013
Non-Vested Share Awards [Member]
Dec. 31, 2013
Non-Vested Share Awards [Member]
Maximum [Member]
Dec. 31, 2013
Non-Vested Share Awards [Member]
Minimum [Member]
Dec. 31, 2013
Share Options Award [Member]
Dec. 31, 2013
Exercisable In Increments Over Four-Year Period [Member]
Dec. 31, 2013
Exercisable In Increments Over Three-Year Period [Member]
Dec. 31, 2013
Performance Awards [Member]
Dec. 31, 2012
Performance Awards [Member]
Dec. 31, 2011
Performance Awards [Member]
Dec. 31, 2013
Savings Plan [Member]
Dec. 31, 2012
Savings Plan [Member]
Dec. 31, 2011
Savings Plan [Member]
Dec. 31, 2013
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 
 
 
 
9,800,000 
 
 
 
 
 
1,000,000 
 
 
 
Share awards, vest rate
 
 
 
 
33.00% 
20.00% 
 
25.00% 
33.00% 
 
 
 
33.00% 
 
 
 
Unrecognized compensation cost on awards
 
 
 
$ 100.5 
 
 
$ 0.2 
 
 
$ 8.7 
 
 
 
 
 
 
Recognized compensation cost, weighted-average period, years
 
 
 
2 years 2 months 12 days 
 
 
3 months 18 days 
 
 
1 year 9 months 18 days 
 
 
 
 
 
 
Share options award, outstanding
814,000 
1,346,000 
 
 
 
 
814,000 
 
 
 
 
 
 
 
 
 
Share option awards, exercisable, increment
 
 
 
 
 
 
 
 
 
3 years 
 
 
3 years 
 
 
 
Performance awards, granted, aggregate grant-date fair value
 
 
 
 
 
 
 
 
 
8.2 
7.2 
3.1 
 
 
 
 
Performance awards, vested, aggregate fair value
 
 
 
 
 
 
 
 
 
7.4 
5.3 
5.6 
 
 
 
 
Recognized compensation expense
 
 
 
 
 
 
 
 
 
6.6 
9.7 
6.7 
 
 
 
 
Employee match
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Maximum percentage of eligible employee compensation to be matched by employer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
Total matching contributions
 
 
 
 
 
 
 
 
 
 
 
 
21.1 
16.5 
12.8 
 
Profit sharing contribution provisions
 
 
 
 
 
 
 
 
 
 
 
 
$ 55.3 
$ 45.1 
$ 21.1 
 
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, 2013
Dec. 31, 2012
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Weighted-average grant-date fair value of non-vested share awards granted (per share)
$ 59.79 
$ 48.32 
$ 52.50 
Total fair value of non-vested share awards vested during the period (in millions)
$ 49.6 
$ 42.5 
$ 41.0 
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, 2013
Dec. 31, 2012
Dec. 31, 2011
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
2,491 
 
 
Non-vested Granted, Shares
1,018 
 
 
Non-vested Vested, Shares
(829)
 
 
Non-vested Forfeited, Shares
(184)
 
 
Non-vested as of December 31, 2012, Shares
2,496 
2,491 
 
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
$ 46.52 
 
 
Non-vested Granted, Weighted-Average Grant-Date Fair Value
$ 59.79 
$ 48.32 
$ 52.50 
Non-vested Vested, Weighted-Average Grant-Date Fair Value
$ 49.96 
 
 
Non-vested Forfeited, Weighted-Average Grant-Date Fair Value
$ 49.16 
 
 
Non-vested as of December 31, 2012, Weighted-Average Grant-Date Fair Value
$ 52.95 
$ 46.52 
 
Benefit Plans (Weighted-Average Assumptions Utilizing The Black-Scholes Model) (Details)
12 Months Ended
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Risk-free interest rate
1.40% 
Expected term (in years)
3 years 8 months 12 days 
Expected volatility
50.20% 
Dividend yield
2.60% 
Benefit Plans (Summary Of Option Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Outstanding as of December 31, 2011, Shares
1,346 
Granted, Shares
Exercised, Shares
(506)
Forfeited, Shares
Expired, Shares
(26)
Outstanding as of December 31, 2012, Shares
814 
Exercisable as of December 31, 2012, Shares
780 
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
$ 46.05 
Granted, Weighted-Average Exercise Price
$ 0.00 
Exercised, Weighted-Average Exercise Price
$ 43.96 
Forfeited, Weighted-Average Exercise Price
$ 0.00 
Expired, Weighted-Average Exercise Price
$ 51.24 
Outstanding as of December 31, 2012, Weighted-Average Exercise Price
$ 47.18 
Exercisable as of December 31, 2012, Weighted-Average Exercise Price
$ 46.85 
Outstanding as of December 31, 2012, Weighted Average Contractual Term
2 years 6 months 
Exercisable as of December 31, 2012, Weighted-Average Contractual Term
2 years 4 months 17 days 
Outstanding as of December 31, 2012, Intrinsic Value
$ 9,065 
Exercisable as of December 31, 2012, Intrinsic Value
$ 8,986 
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, 2013
Dec. 31, 2012
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Weighted-average grant-date fair value of options granted (per share)
$ 0.00 
$ 0.00 
$ 19.05 
Intrinsic value of options exercised during the year (in millions)
$ 8.7 
$ 17.8 
$ 17.2 
Benefit Plans (Summary Of Information About Options Outstanding) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Options Outstanding, Number
814 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
2 years 6 months 
Options Outstanding, Weighted-Average Exercise Price
$ 47.18 
Options Exercisable, Number
780 
Options Exercisable, Weighted-Average Exercise Price
$ 46.85 
$21.54 - $40.99 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 21.54 
Exercise Prices, upper range limit
$ 40.99 
Options Outstanding, Number
247 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
3 years 1 month 6 days 
Options Outstanding, Weighted-Average Exercise Price
$ 33.51 
Options Exercisable, Number
247 
Options Exercisable, Weighted-Average Exercise Price
$ 33.51 
$41.18 - $54.30 [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
$ 54.30 
Options Outstanding, Number
229 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
3 years 6 months 
Options Outstanding, Weighted-Average Exercise Price
$ 43.77 
Options Exercisable, Number
217 
Options Exercisable, Weighted-Average Exercise Price
$ 43.22 
$55.34 - $60.74 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
Exercise Prices, lower range limit
$ 55.34 
Exercise Prices, upper range limit
$ 60.74 
Options Outstanding, Number
338 
Options Outstanding, Weighted Average Remaining Contractual Life (in years)
1 year 3 months 18 days 
Options Outstanding, Weighted-Average Exercise Price
$ 59.50 
Options Exercisable, Number
316 
Options Exercisable, Weighted-Average Exercise Price
$ 59.79 
Goodwill and Other Intangible Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Goodwill [Line Items]
 
 
 
Goodwill
$ 3,274.0 
$ 3,274.0 
 
Drilling contract intangible assets, Gross Carrying Amount
209.0 
209.0 
209.0 
Intangible Assets, Accumulated Amortization [Roll Forward]
 
 
 
Balance, beginning of period
(88.3)
(36.4)
 
Amortization
(42.3)
(51.9)
 
Balance, end of period
(130.6)
(88.3)
 
Intangible Assets, Net Carrying Amount [Roll Forward]
 
 
 
Balance, beginning of period
120.7 
172.6 
 
Amortization
(42.3)
(51.9)
 
Balance, end of period
78.4 
120.7 
 
Drilling contract intangible liabilities, Gross Carrying Amount
278.0 
278.0 
278.0 
Intangible Liabilities, Accumulated Amortization [Roll Forward]
 
 
 
Balance, beginning of period
(160.0)
(92.8)
 
Amortization
(48.9)
(67.2)
 
Balance, end of period
(208.9)
(160.0)
 
Intangible Liabilities, Net Carrying Amount [Roll Forward]
 
 
 
Balance, beginning of period
118.0 
185.2 
 
Amortization
(48.9)
(67.2)
 
Balance, end of period
69.1 
118.0 
 
Finite-Lived Intangible Assets, Net, Amortization Income (Expense), Fiscal Year Maturity [Abstract]
 
 
 
2014
(4.3)
 
 
2015
(4.5)
 
 
2016
(0.8)
 
 
2017
0.3 
 
 
Total
(9.3)
 
 
Floaters [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
3,081.4 
 
 
Jackup [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill
$ 192.6 
 
 
Income Taxes (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
jackup
Dec. 31, 2012
jackup
Dec. 31, 2011
drillship
Income from continuing operations before income taxes in the U.S. countries
 
 
$ 177,000,000 
$ 109,300,000 
$ (28,300,000)
Income from continuing operations before income taxes in the non-U.S. countries
 
 
1,481,500,000 
1,400,000,000 
751,500,000 
Deferred tax assets related to U.S. foreign tax credits
159,000,000 
173,400,000 
159,000,000 
173,400,000 
 
Deferred tax assets related to net operating loss carryforwards
104,000,000 
87,800,000 
104,000,000 
87,800,000 
 
Net operating loss carryforwards
375,600,000 
 
375,600,000 
 
 
Operating loss carryforwards, Not subject to expiration
231,400,000 
 
231,400,000 
 
 
Operating loss carryforwards, Subject to expiration
144,200,000 
 
144,200,000 
 
 
Valuation allowance on NOL carryforwards and FTC
228,800,000 
 
228,800,000 
 
 
Restructuring charges, tax
 
51,200,000 
 
 
 
Proceeds from Income Tax Refunds
 
 
9,600,000 
 
 
Valuation Allowance, Deferred Tax Asset, Change in Amount
7,000,000 
 
 
 
 
Consilidated effective income tax rate excluding discrete items
 
 
12.70% 
12.20% 
15.10% 
Minimum percentage threshold for recognition of tax benefits
 
 
50.00% 
 
 
Total unrecognized tax benefits
151,700,000 
110,700,000 
151,700,000 
110,700,000 
53,600,000 
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions With Net Operating Loss Carryforwards
 
 
21,000,000 
 
 
Amount of unrecognized tax benefits affecting the consolidated effective income tax rate if recognized
127,400,000 
 
127,400,000 
 
 
Amount of accrued interest and penalties included in other liabilities
17,300,000 
18,900,000 
17,300,000 
18,900,000 
 
Amount of interest and penalties recognized in net tax expense
 
 
1,600,000 
2,800,000 
400,000 
Income tax benefits, inclusive of interest and penalties due to lapses in statute of limitations
3,100,000 
28,600,000 
3,100,000 
28,600,000 
4,200,000 
Decline in unrecognized tax benefits during next twelve months
2,300,000 
 
2,300,000 
 
 
Accrued interest and penalty assessments related to the decline in unrecognized tax benefits
900,000 
 
900,000 
 
 
Number of assets transferred (in drillships or jackups)
 
 
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
50,200,000 
58,300,000 
50,200,000 
58,300,000 
 
Amount included in current income taxes for amortization of deferred income taxes related to intercompany transfers
 
 
8,100,000 
13,400,000 
14,000,000 
Deferred tax liability related to temporary difference from transferred drilling rigs
29,200,000 
32,200,000 
29,200,000 
32,200,000 
 
Tax benefits included in deferred income tax expense related to amortization of deferred reversing temporary differences from intercompany transfers
 
 
3,000,000 
4,400,000 
4,600,000 
Aggregate Indefinitely reinvested undistributed subsidiary earnings.
 
530,000,000 
 
 
 
Undistributed Earnings of Foreign Subsidiaries
2,100,000,000 
 
2,100,000,000 
 
 
Other Liabilities [Member]
 
 
 
 
 
Total unrecognized tax benefits
130,700,000 
 
130,700,000 
 
 
Minimum [Member]
 
 
 
 
 
Operating loss carryforwards tax credits expiration year
 
 
2017 
 
 
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
 
 
2023 
 
 
Remaining useful life of drilling rigs associated with amortization of deferred income tax expense, minimum years
 
 
35 years 
 
 
Mexican Tax Authority [Member]
 
 
 
 
 
Deferred Tax Liabilities, Gross
 
 
7,400,000 
 
 
Proceeds from Income Tax Refunds
 
 
$ 30,600,000 
 
 
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Current income tax expense, U.S.
 
 
 
 
 
 
 
 
$ 97.3 
$ 42.8 
$ 40.7 
Current income tax expense, Non-U.S.
 
 
 
 
 
 
 
 
122.1 
183.6 
94.2 
Current Income Tax Expense, Total
 
 
 
 
 
 
 
 
219.4 
226.4 
134.9 
Deferred income tax expense (benefit), U.S.
 
 
 
 
 
 
 
 
14.7 
32.0 
(14.8)
Deferred income tax expense (benefit), Non-U.S.
 
 
 
 
 
 
 
 
(8.5)
(14.0)
(4.7)
Deferred income tax expense
 
 
 
 
 
 
 
 
6.2 
18.0 
(19.5)
Total provision for income taxes
$ 51.0 
$ 73.3 
$ 49.6 
$ 51.7 
$ 117.1 
$ 46.9 
$ 43.4 
$ 37.0 
$ 225.6 
$ 244.4 
$ 115.4 
Income Taxes (Summary Of Significant Components Of Deferred Income Tax Assets (Liabilities)) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
Foreign tax credits
$ 159.0 
$ 173.4 
Premium on long-term debt
111.9 
124.0 
Net operating loss carryfowards
104.0 
87.8 
Employee benefits, including share-based compensation
41.7 
33.4 
Deferred revenue
19.4 
22.7 
Other
19.8 
24.5 
Total deferred tax assets
455.8 
465.8 
Valuation allowance
(232.6)
(227.1)
Net deferred tax assets
223.2 
238.7 
Property and equipment
(453.6)
(472.9)
Intercompany transfers of property
(29.2)
(32.2)
Deferred costs
(11.4)
(20.9)
Other
(24.0)
(31.3)
Total deferred tax liabilities
(518.2)
(557.3)
Net deferred tax liability
(295.0)
(318.6)
Net current deferred tax asset
20.9 
13.8 
Net noncurrent deferred tax liability
$ (315.9)
$ (332.4)
Income Taxes (Summary Of Effective Income Tax Rate On Continuing Operations) (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
U.K. statutory income tax rate
23.30% 
24.50% 
26.50% 
Non-U.K. taxes
(12.90%)
(15.50%)
(19.60%)
Amortization of deferred charges associated with intercompany rig sales
0.30% 
0.60% 
1.00% 
Redomestication related income taxes
0.00% 
3.50% 
0.00% 
Valuation allowance
1.80% 
2.60% 
6.80% 
Net expense (benefit) in connection with resolutions of tax issues and adjustments relating to prior years
0.60% 
1.00% 
0.80% 
Other
0.50% 
0.00% 
0.40% 
Effective income tax rate
13.60% 
16.70% 
15.90% 
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, 2013
Dec. 31, 2012
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
Balance, beginning of year
$ 110.7 
$ 53.6 
Increases in unrecognized tax benefits as a result of tax positions taken during prior years
35.8 
21.3 
Increases in unrecognized tax benefits as a result of tax positions taken during the current year
10.0 
60.7 
Decreases in unrecognized tax benefits as a result of tax positions taken during prior years
(3.7)
(0.4)
Settlements with taxing authorities
(4.1)
Lapse of applicable statutes of limitations
(1.1)
(20.8)
Impact of foreign currency exchange rates
0.4 
Balance, end of year
$ 151.7 
$ 110.7 
Discontinued Operations (Schedule of Rig Sales) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 31 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Dec. 31, 2012
Floaters [Member]
ENSCO 5003 [Member]
Mar. 31, 2013
Jackups [Member]
Pride Pennsylvania Rig [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]
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
$ 15.7 
$ 134.2 
$ 29.1 
$ 203.0 1
$ 68.2 1
$ 15.5 1
$ 18.8 1
$ 31.7 1
$ 22.8 1
$ 41.5 1
$ 4.5 1
Net Book Value
204.5 1 2
 
 
204.5 1 2
89.4 1 2
15.7 1 2
16.8 1 2
19.6 1 2
21.9 1 2
28.8 1 2
12.3 1 2
Pre-tax Gain/(Loss)
 
 
 
$ (1.5)1 3
$ (21.2)
$ (0.2)
$ 2.0 
$ 12.1 
$ 0.9 
$ 12.7 
$ (7.8)
Discontinued Operations (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2011
Dec. 31, 2012
Pride Pennsylvania Rig [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Discontinued Operation, Tax Effect of Discontinued Operation
$ 900,000 
$ 10,900,000 
 
Impairment charge for asset write down
 
 
(2,500,000)
Litigation Settlement, Amount
9,600,000 
 
 
Legal Fees
3,600,000 
 
 
Estimated Litigation Liability
6,400,000 
 
 
Liability insurance self-insured retention per occurrence
10,000,000 
 
 
Litigation Settlement, Amount to be Paid by Underwriters
$ 3,200,000 
 
 
Discontinued Operations (Summary Of Income From Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
$ 0 
$ 6.7 
$ 45.0 
Operating expenses
 
 
 
 
 
 
 
 
6.5 
44.3 
44.4 
Operating (loss) income before income taxes
 
 
 
 
 
 
 
 
(6.5)
(37.6)
0.6 
Other income (expense)
 
 
 
 
 
 
 
 
0.3 
1.3 
0.2 
Income tax benefit
 
 
 
 
 
 
 
 
2.3 
7.3 
(4.8)
Gain on disposal of discontinued operations, net
 
 
 
 
 
 
 
 
(1.1)
(16.5)
1.8 
DISCONTINUED OPERATIONS, NET
$ (4.1)
$ 0 
$ 0 
$ (0.9)
$ (22.1)
$ (15.8)
$ 5.5 
$ (13.1)
$ (5.0)
$ (45.5)
$ (2.2)
Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended 24 Months Ended
Dec. 31, 2013
plaintiffs
claim
Dec. 31, 2013
occurrence
claim
plaintiffs
Dec. 31, 2012
payments
Dec. 31, 2011
Dec. 31, 2013
claim
plaintiffs
Mar. 31, 2009
mi
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Aggregate Contractual Capital Commitments Due In One Year
$ 1,061.4 
$ 1,061.4 
 
 
$ 1,061.4 
 
Rental expenses
 
53.6 
47.5 
31.5 
 
 
2014
36.9 
36.9 
 
 
36.9 
 
2015
20.1 
20.1 
 
 
20.1 
 
2016
10.3 
10.3 
 
 
10.3 
 
2017
9.5 
9.5 
 
 
9.5 
 
2018
9.6 
9.6 
 
 
9.6 
 
Thereafter
63.7 
63.7 
 
 
63.7 
 
Distance from original drilling location in miles
 
 
 
 
 
95 
Leg and debris removal costs
 
 
19.0 
 
 
 
Number of payments related to leg and debris removal costs
 
 
 
 
 
Payments for leg and debris removal
 
 
 
 
19.0 
 
Insurance reimbursements
 
 
 
 
18.5 
 
Wreckage and debris removal
9.0 
 
 
Wreckage and debris removal receivables
0.5 
0.5 
13.2 
 
0.5 
 
Number of claims
 
 
 
Liability insurance self-insured retention per occurrence
10.0 
10.0 
 
 
10.0 
 
Annual liability coverage limit for wreckage and debris removal costs
 
490.0 
 
 
 
 
Civil litigation claim damages for cost of repairs and business interruption due to pipeline rupture
26.0 
26.0 
 
 
26.0 
 
Litigation Settlement, Amount
 
9.6 
 
 
 
 
Legal Fees
 
3.6 
 
 
 
 
Estimated Litigation Liability
6.4 
6.4 
 
 
6.4 
 
Litigation Settlement, Amount to be Paid by Underwriters
3.2 
3.2 
 
 
3.2 
 
Liability insurance self-insured retention
15.0 
15.0 
 
 
15.0 
 
Number of occurrences
 
 
 
 
 
Liability insurance self-insured retention for each occurrence thereafter
 
1.0 
 
 
 
 
Number of plaintiffs
100 
100 
 
 
100 
 
Loss Contingency, Claims Settled, Number
58 
 
 
 
 
 
Letters of Credit Outstanding, Amount
232.3 
232.3 
 
 
232.3 
 
Minimum [Member]
 
 
 
 
 
 
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Damages sought
 
5.0 
 
 
 
 
Rig Enhancement Projects [Member]
 
 
 
 
 
 
Oil and Gas Delivery Commitments and Contracts [Line Items]
 
 
 
 
 
 
Aggregate Contractual Capital Commitments Due In One Year
$ 94.2 
$ 94.2 
 
 
$ 94.2 
 
Commitments And Contingencies (Capital Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
$ 565.3 1
2014
1,061.4 
2015
473.5 
2016
213.8 
Total
2,314.0 2
ENSCO DS-8 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
161.4 1
2014
383.2 
2015
2016
Total
544.6 2
ENSCO DS-9 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
157.4 1
2014
373.2 
2015
2016
Total
530.6 2
ENSCO DS-10 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
103.0 1
2014
103.0 
2015
307.4 
2016
Total
513.4 2
ENSCO 110 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
41.0 1
2014
2015
166.1 
2016
Total
207.1 2
ENSCO 122 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
49.0 1
2014
202.0 
2015
2016
Total
251.0 2
ENSCO 123 [Member]
 
Property, Plant and Equipment [Line Items]
 
Cumulative Paid
53.5 1
2014
2015
2016
213.8 
Total
$ 267.3 
Segment Information (Narrative) (Details)
12 Months Ended
Dec. 31, 2013
service
segments
contract
Segment Reporting Information [Line Items]
 
Number of operating segments
Number of reportable segments
Number of services
Number of drilling management contracts
Moored Semisubmersible Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
45 
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Number of drillships
Floaters [Member] |
Dynamically Positioned Semisubmersible [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
13 
Floaters [Member] |
Moored Semisubmersible Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
Floaters [Member] |
Ultra-Deepwater [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
Jackups [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
47 
Asia Pacific, Europe and Mediterranean, Middle East and Africa and North and South America [Member] |
Jackups [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
44 
Singapore [Member] |
Jackups [Member] |
Jackup Rigs [Member]
 
Segment Reporting Information [Line Items]
 
Number of contract drilling rigs
Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 1,255.6 
$ 1,266.2 
$ 1,248.1 
$ 1,149.9 
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 4,919.8 
$ 4,300.7 
$ 2,797.7 
Operating expenses - Contract drilling (exclusive of depreciation)
615.7 
619.2 
606.8 
560.8 
524.5 
507.3 
494.0 
502.2 
2,402.5 
2,028.0 
1,449.1 
Depreciation
156.7 
153.3 
152.9 
149.0 
143.9 
142.4 
136.3 
136.0 
611.9 
558.6 
408.9 
General and administrative
35.2 
37.4 
36.4 
37.8 
35.0 
40.2 
35.5 
38.2 
146.8 
148.9 
158.6 
OPERATING INCOME
448.0 
456.3 
452.0 
402.3 
382.1 
433.6 
405.3 
344.2 
1,758.6 
1,565.2 
781.1 
Property and equipment, net
14,311.0 
 
 
 
13,145.6 
 
 
 
14,311.0 
13,145.6 
12,421.9 
Capital expenditures
 
 
 
 
 
 
 
 
1,779.2 
1,802.2 
729.0 
Floaters [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
3,109.5 
2,707.8 
1,532.8 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
1,509.4 
1,225.1 
785.1 
Depreciation
 
 
 
 
 
 
 
 
441.9 
382.3 
235.9 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,158.2 
1,100.4 
511.8 
Property and equipment, net
11,303.4 
 
 
 
10,727.6 
 
 
 
11,303.4 
10,727.6 
9,923.6 
Capital expenditures
 
 
 
 
 
 
 
 
1,038.1 
1,575.5 
436.7 
Jackup [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,735.2 
1,510.1 
1,212.5 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
834.6 
741.8 
621.1 
Depreciation
 
 
 
 
 
 
 
 
163.5 
167.4 
168.6 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
737.1 
600.9 
422.8 
Property and equipment, net
2,961.6 
 
 
 
2,389.8 
 
 
 
2,961.6 
2,389.8 
2,462.4 
Capital expenditures
 
 
 
 
 
 
 
 
714.5 
224.0 
278.3 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
75.1 
82.8 
52.4 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
58.5 
61.1 
42.9 
Depreciation
 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
16.6 
21.7 
9.5 
Property and equipment, net
 
 
 
 
 
 
12.8 
Capital expenditures
 
 
 
 
 
 
 
 
Operating Segments Total [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
4,919.8 
4,300.7 
2,797.7 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
2,402.5 
2,028.0 
1,449.1 
Depreciation
 
 
 
 
 
 
 
 
605.4 
549.7 
404.5 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,911.9 
1,723.0 
944.1 
Property and equipment, net
14,265.0 
 
 
 
13,117.4 
 
 
 
14,265.0 
13,117.4 
12,398.8 
Capital expenditures
 
 
 
 
 
 
 
 
1,752.6 
1,799.5 
715.0 
Reconciling Items [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
Operating expenses - Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
 
 
6.5 
8.9 
4.4 
General and administrative
 
 
 
 
 
 
 
 
146.8 
148.9 
158.6 
OPERATING INCOME
 
 
 
 
 
 
 
 
(153.3)
(157.8)
(163.0)
Property and equipment, net
46.0 
 
 
 
28.2 
 
 
 
46.0 
28.2 
23.1 
Capital expenditures
 
 
 
 
 
 
 
 
$ 26.6 
$ 2.7 
$ 14.0 
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details)
Dec. 31, 2013
contract
rigs
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
76 
Number of drilling management contracts
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
29 
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
47 
North & South America (Excluding Brazil) [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
22 
North & South America (Excluding Brazil) [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
North & South America (Excluding Brazil) [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
14 
Middle East & Africa [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
16 
Middle East & Africa [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
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 
Asia & Pacific Rim [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Asia & Pacific Rim [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
10 
Europe & Mediterranean [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
12 
Europe & Mediterranean [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Europe & Mediterranean [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
10 
Brazil [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Brazil [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Brazil [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Asia & Pacific Rim (Under Construction) [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Asia & Pacific Rim (Under Construction) [Member] |
Floaters [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
Asia & Pacific Rim (Under Construction) [Member] |
Jackup [Member]
 
Segment Reporting Information [Line Items]
 
Total number of contract drilling rigs
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 1,255.6 
$ 1,266.2 
$ 1,248.1 
$ 1,149.9 
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 4,919.8 
$ 4,300.7 
$ 2,797.7 
Long-lived Assets
14,311.0 
 
 
 
13,145.6 
 
 
 
14,311.0 
13,145.6 
12,421.9 
Geographic Areas [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
4,919.8 
4,300.7 
2,797.7 
Long-lived Assets
14,311.0 
 
 
 
13,145.6 
 
 
 
14,311.0 
13,145.6 
12,421.9 
Geographic Areas [Member] |
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,724.9 
1,291.3 
753.8 
Long-lived Assets
4,617.8 
 
 
 
4,525.9 
 
 
 
4,617.8 
4,525.9 
3,450.6 
Geographic Areas [Member] |
Brazil [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
953.7 
1,093.2 
575.6 
Long-lived Assets
2,447.5 
 
 
 
2,911.3 
 
 
 
2,447.5 
2,911.3 
3,101.8 
Geographic Areas [Member] |
Angola [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
467.1 
431.7 
243.7 
Long-lived Assets
2,543.7 
 
 
 
2,147.2 
 
 
 
2,543.7 
2,147.2 
1,347.9 
Geographic Areas [Member] |
Other countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,774.1 
1,484.5 
1,224.6 
Long-lived Assets
$ 4,702.0 
 
 
 
$ 3,561.2 
 
 
 
$ 4,702.0 
$ 3,561.2 
$ 4,521.6 
Supplemental Financial Information (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Capitalized interest
$ 67.7 
$ 105.8 
$ 80.2 
Capital expenditure accruals
113.9 
112.5 
305.8 
Sales Revenue, Services, Net [Member] |
Customer Concentration Risk [Member] |
Floaters [Member]
 
 
 
Revenues
817.8 
1,026.3 
456.6 
Percentage of consolidated revenues
17.00% 
24.00% 
16.00% 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
U.S. Gulf of Mexico [Member]
 
 
 
Revenues
1,700.0 
 
 
Percentage of consolidated revenues
35.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Brazil [Member]
 
 
 
Revenues
953.7 
 
 
Percentage of consolidated revenues
19.00% 
 
 
Sales Revenue, Services, Net [Member] |
Geographic Concentration Risk [Member] |
Floaters [Member] |
U.S. Gulf of Mexico [Member]
 
 
 
Percentage of consolidated revenues
75.00% 
 
 
OGX Petróleo e Gás Participações S.A. [Member]
 
 
 
Provision for Doubtful Accounts
$ 14.6 
 
 
Supplemental Financial Information (Accounts Receivable, Net) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
$ 884.1 
$ 830.6 
Allowance for doubtful accounts
(28.4)
(19.2)
Accounts receivable, net
855.7 
811.4 
Trade [Member]
 
 
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
869.8 
812.4 
Other [Member]
 
 
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items]
 
 
Accounts receivable
$ 14.3 
$ 18.2 
Supplemental Financial Information (Other Current Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Financial Information [Abstract]
 
 
Inventory
$ 256.4 
$ 207.8 
Prepaid taxes
88.1 
62.2 
Short-term investments
50.0 
50.0 
Deferred mobilization costs
47.4 
46.9 
Prepaid expenses
18.5 
20.3 
Derivative assets
11.6 
5.2 
Deferred tax assets
23.1 
14.6 
Assets held for sale
8.6 
14.2 
Other
10.2 
4.2 
Other current assets
$ 513.9 
$ 425.4 
Supplemental Financial Information (Other Assets, Net) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Financial Information [Abstract]
 
 
Intangible assets
$ 83.8 
$ 143.3 
Unbilled reimbursable receivables
51.9 
77.1 
Prepaid taxes on intercompany transfers of property
50.2 
58.3 
Warranty and Other Claim Receivables
30.6 
30.6 
Supplemental executive retirement plan assets
37.7 
29.8 
Deferred mobilization costs
59.1 
45.2 
Deferred tax assets
25.2 
19.3 
Wreckage and debris removal receivables
0.5 
13.2 
Other
13.7 
5.0 
Other assets, net
$ 352.7 
$ 421.8 
Supplemental Financial Information (Accrued Liabilities And Other) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Financial Information [Abstract]
 
 
Personnel costs
$ 242.0 
$ 231.1 
Deferred revenue
169.8 
146.9 
Taxes
84.2 
86.9 
Accrued interest
68.0 
67.9 
Prepayment Liability for Sale of Assets, Current
33.0 
Customer Prepayments, Current
20.0 
Wreckage and debris removal
9.0 
Other
41.7 
42.6 
Accrued liabilities and other
$ 658.7 
$ 584.4 
Supplemental Financial Information (Other Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Financial Information [Abstract]
 
 
Deferred revenue
$ 217.6 
$ 224.5 
Intangible liabilities
69.1 
118.0 
Unrecognized tax benefits (inclusive of interest and penalties)
148.0 
129.6 
Supplemental executive retirement plan liabilities
40.5 
33.3 
Personnel costs
37.2 
31.6 
Other
33.3 
36.4 
Other liabilities
$ 545.7 
$ 573.4 
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Supplemental Financial Information [Abstract]
 
 
Derivative Instruments
$ 20.6 
$ 24.4 
Other
(2.4)
(4.3)
Accumulated other comprehensive income
$ 18.2 
$ 20.1 
Supplemental Financial Information (Cash Flows Information) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Supplemental Financial Information [Abstract]
 
 
 
(Increase) decrease in other assets
$ (80.7)
$ 80.1 
$ (14.5)
(Decrease) increase in liabilities
(22.9)
319.0 
(13.2)
Decrease (increase) in accounts receivable
1.1 
28.1 
(244.8)
Changes in operating assets and liabilities
$ 102.5 
$ (427.2)
$ 272.5 
Guarantee Of Registered Securities (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Guarantor Obligations [Line Items]
 
Senior notes aggregate outstanding principal balance
$ 1,700,000,000 
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% 
Notes Issued
$ 150,000,000.0 
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
$ 1,255.6 
$ 1,266.2 
$ 1,248.1 
$ 1,149.9 
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 4,919.8 
$ 4,300.7 
$ 2,797.7 
Contract drilling (exclusive of depreciation)
615.7 
619.2 
606.8 
560.8 
524.5 
507.3 
494.0 
502.2 
2,402.5 
2,028.0 
1,449.1 
Depreciation
156.7 
153.3 
152.9 
149.0 
143.9 
142.4 
136.3 
136.0 
611.9 
558.6 
408.9 
General and administrative
35.2 
37.4 
36.4 
37.8 
35.0 
40.2 
35.5 
38.2 
146.8 
148.9 
158.6 
OPERATING INCOME
448.0 
456.3 
452.0 
402.3 
382.1 
433.6 
405.3 
344.2 
1,758.6 
1,565.2 
781.1 
OTHER (EXPENSE) INCOME, NET
(28.9)
(1.6)
(39.8)
(29.8)
(21.7)
(25.5)
(24.7)
(26.7)
(100.1)
(98.6)
(57.9)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
419.1 
454.7 
412.2 
372.5 
360.4 
408.1 
380.6 
317.5 
1,658.5 
1,466.6 
723.2 
INCOME TAX PROVISION
51.0 
73.3 
49.6 
51.7 
117.1 
46.9 
43.4 
37.0 
225.6 
244.4 
115.4 
DISCONTINUED OPERATIONS, NET
(4.1)
(0.9)
(22.1)
(15.8)
5.5 
(13.1)
(5.0)
(45.5)
(2.2)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
NET INCOME
364.0 
381.4 
362.6 
319.9 
221.2 
345.4 
342.7 
267.4 
1,427.9 
1,176.7 
605.6 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(2.6)
(2.6)
(1.7)
(2.8)
(1.7)
(1.9)
(1.4)
(2.0)
(9.7)
(7.0)
(5.2)
NET INCOME ATTRIBUTABLE TO ENSCO
361.4 
378.8 
360.9 
317.1 
219.5 
343.5 
341.3 
265.4 
1,418.2 
1,169.7 
600.4 
Ensco Plc [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
35.0 
44.0 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
27.5 
51.2 
46.9 
Depreciation
 
 
 
 
 
 
 
 
0.3 
0.4 
0.4 
General and administrative
 
 
 
 
 
 
 
 
63.5 
63.8 
52.2 
OPERATING INCOME
 
 
 
 
 
 
 
 
(56.3)
(71.4)
(99.5)
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(65.6)
(41.8)
32.1 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(121.9)
(113.2)
(67.4)
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
1,540.1 
1,282.9 
667.8 
NET INCOME
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
ENSCO International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
149.4 
147.6 
70.0 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
149.4 
147.6 
70.0 
Depreciation
 
 
 
 
 
 
 
 
4.0 
3.5 
1.8 
General and administrative
 
 
 
 
 
 
 
 
0.5 
0.4 
OPERATING INCOME
 
 
 
 
 
 
 
 
(4.5)
(3.9)
(1.8)
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(9.4)
(7.0)
0.4 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(13.9)
(10.9)
(1.4)
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
92.5 
68.8 
38.5 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
(11.1)
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
366.2 
335.9 
271.5 
NET INCOME
 
 
 
 
 
 
 
 
259.8 
256.2 
220.5 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
259.8 
256.2 
220.5 
Pride International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
(27.9)
(50.0)
(22.7)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
(27.9)
(50.0)
(22.7)
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
1.5 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
111.6 
239.2 
143.9 
NET INCOME
 
 
 
 
 
 
 
 
83.7 
189.2 
119.7 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
83.7 
189.2 
119.7 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
5,042.8 
4,429.2 
2,869.5 
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
2,533.0 
2,149.3 
1,474.0 
Depreciation
 
 
 
 
 
 
 
 
607.6 
554.7 
406.7 
General and administrative
 
 
 
 
 
 
 
 
82.8 
84.7 
106.4 
OPERATING INCOME
 
 
 
 
 
 
 
 
1,819.4 
1,640.5 
882.4 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
2.8 
0.2 
(67.7)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
1,822.2 
1,640.7 
814.7 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
133.1 
175.6 
75.4 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
(5.0)
(45.5)
8.9 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
1,684.1 
1,419.6 
748.2 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(9.7)
(7.0)
(5.2)
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,674.4 
1,412.6 
743.0 
Consolidating Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
 
 
 
 
 
 
 
 
(307.4)
(320.1)
(141.8)
Contract drilling (exclusive of depreciation)
 
 
 
 
 
 
 
 
(307.4)
(320.1)
(141.8)
Depreciation
 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
OTHER (EXPENSE) INCOME, NET
 
 
 
 
 
 
 
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
 
 
 
 
 
 
 
INCOME TAX PROVISION
 
 
 
 
 
 
 
 
DISCONTINUED OPERATIONS, NET
 
 
 
 
 
 
 
 
 
EQUITY EARNINGS IN AFFILIATES, NET OF TAX
 
 
 
 
 
 
 
 
(2,017.9)
(1,858.0)
(1,083.2)
NET INCOME
 
 
 
 
 
 
 
 
(2,017.9)
(1,858.0)
(1,083.2)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
NET INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ (2,017.9)
$ (1,858.0)
$ (1,083.2)
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$ 364.0 
$ 381.4 
$ 362.6 
$ 319.9 
$ 221.2 
$ 345.4 
$ 342.7 
$ 267.4 
$ 1,427.9 
$ 1,176.7 
$ 605.6 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
(5.8)
8.7 
0.1 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
2.0 
(5.5)
Other
 
 
 
 
 
 
 
 
1.9 
2.8 
2.9 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
(1.9)
11.5 
(2.5)
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,426.0 
1,188.2 
603.1 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(9.7)
(7.0)
(5.2)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,416.3 
1,181.2 
597.9 
Ensco Plc [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,418.2 
1,169.7 
600.4 
ENSCO International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
259.8 
256.2 
220.5 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
(5.8)
6.3 
(4.2)
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
2.0 
0.2 
0.2 
Other
 
 
 
 
 
 
 
 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
(3.8)
6.5 
(4.0)
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
256.0 
262.7 
216.5 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
256.0 
262.7 
216.5 
Pride International Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
83.7 
189.2 
119.7 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
83.7 
189.2 
119.7 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
83.7 
189.2 
119.7 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
1,684.1 
1,419.6 
748.2 
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
2.4 
4.3 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
(0.2)
(5.7)
Other
 
 
 
 
 
 
 
 
1.9 
2.8 
2.9 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
1.9 
5.0 
1.5 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
1,686.0 
1,424.6 
749.7 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
(9.7)
(7.0)
(5.2)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
1,676.3 
1,417.6 
744.5 
Consolidating Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
 
 
 
 
 
 
 
 
(2,017.9)
(1,858.0)
(1,083.2)
OTHER COMPREHENSIVE INCOME (LOSS), NET
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of derivatives
 
 
 
 
 
 
 
 
Reclassification of gains and losses on derivative instruments from other comprehensive (income) loss into net income
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
NET OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME
 
 
 
 
 
 
 
 
(2,017.9)
(1,858.0)
(1,083.2)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
 
 
 
 
 
 
 
 
$ (2,017.9)
$ (1,858.0)
$ (1,083.2)
Guarantee Of Registered Securities (Condensed Consolidating Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
$ 165.6 
$ 487.1 
$ 430.7 
$ 1,050.7 
Accounts receivable
855.7 
811.4 
 
 
Accounts receivable from affiliates
 
 
Other
513.9 
425.4 
 
 
Total current assets
1,535.2 
1,723.9 
 
 
PROPERTY AND EQUIPMENT, AT COST
17,498.5 
15,737.1 
 
 
Less accumulated depreciation
3,187.5 
2,591.5 
 
 
Property and equipment, net
14,311.0 
13,145.6 
12,421.9 
 
GOODWILL
3,274.0 
3,274.0 
 
 
DUE FROM AFFILIATES
 
 
INVESTMENTS IN AFFILIATES
 
 
OTHER ASSETS, NET
352.7 
421.8 
 
 
TOTAL ASSETS
19,472.9 
18,565.3 
 
 
Accounts payable and accrued liabilities
999.8 
942.2 
 
 
Accounts payable to affiliates
 
 
Current maturities of long-term debt
47.5 
47.5 
 
 
Total current liabilities
1,047.3 
989.7 
 
 
DUE TO AFFILIATES
 
 
LONG-TERM DEBT
4,718.9 
4,798.4 
 
 
DEFERRED INCOME TAXES
362.1 
351.7 
 
 
OTHER LIABILITIES
545.7 
573.4 
 
 
ENSCO SHAREHOLDERS' EQUITY
12,791.6 
11,846.4 
 
 
NONCONTROLLING INTERESTS
7.3 
5.7 
 
 
Total equity
12,798.9 
11,852.1 
 
 
Total liabilities and shareholders' equity
19,472.9 
18,565.3 
 
 
Ensco Plc [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
46.5 
271.8 
236.6 
3.4 
Accounts receivable
 
 
Accounts receivable from affiliates
1,235.0 
1,294.5 
 
 
Other
3.2 
2.8 
 
 
Total current assets
1,284.7 
1,569.1 
 
 
PROPERTY AND EQUIPMENT, AT COST
2.1 
2.1 
 
 
Less accumulated depreciation
1.5 
1.1 
 
 
Property and equipment, net
0.6 
1.0 
 
 
GOODWILL
 
 
DUE FROM AFFILIATES
4,876.8 
3,483.5 
 
 
INVESTMENTS IN AFFILIATES
13,830.1 
13,469.3 
 
 
OTHER ASSETS, NET
8.8 
11.3 
 
 
TOTAL ASSETS
20,001.0 
18,534.2 
 
 
Accounts payable and accrued liabilities
31.5 
31.0 
 
 
Accounts payable to affiliates
3,666.1 
2,364.8 
 
 
Current maturities of long-term debt
 
 
Total current liabilities
3,697.6 
2,395.8 
 
 
DUE TO AFFILIATES
1,030.8 
1,816.7 
 
 
LONG-TERM DEBT
2,473.7 
2,469.6 
 
 
DEFERRED INCOME TAXES
 
 
OTHER LIABILITIES
 
 
ENSCO SHAREHOLDERS' EQUITY
12,798.9 
11,852.1 
 
 
NONCONTROLLING INTERESTS
 
 
Total equity
12,798.9 
11,852.1 
 
 
Total liabilities and shareholders' equity
20,001.0 
18,534.2 
 
 
ENSCO International Inc. [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
0.5 
1.7 
19.1 
Accounts receivable
0.2 
 
 
Accounts receivable from affiliates
213.8 
226.5 
 
 
Other
61.3 
24.9 
 
 
Total current assets
275.6 
253.3 
 
 
PROPERTY AND EQUIPMENT, AT COST
34.3 
30.2 
 
 
Less accumulated depreciation
26.5 
23.5 
 
 
Property and equipment, net
7.8 
6.7 
 
 
GOODWILL
 
 
DUE FROM AFFILIATES
4,236.0 
3,594.7 
 
 
INVESTMENTS IN AFFILIATES
4,868.6 
2,693.8 
 
 
OTHER ASSETS, NET
60.1 
67.4 
 
 
TOTAL ASSETS
9,448.1 
6,615.9 
 
 
Accounts payable and accrued liabilities
9.1 
28.1 
 
 
Accounts payable to affiliates
549.7 
136.9 
 
 
Current maturities of long-term debt
 
 
Total current liabilities
558.8 
165.0 
 
 
DUE TO AFFILIATES
2,760.4 
2,054.7 
 
 
LONG-TERM DEBT
149.1 
149.0 
 
 
DEFERRED INCOME TAXES
358.3 
335.1 
 
 
OTHER LIABILITIES
2.3 
 
 
ENSCO SHAREHOLDERS' EQUITY
5,619.2 
3,912.1 
 
 
NONCONTROLLING INTERESTS
 
 
Total equity
5,619.2 
3,912.1 
 
 
Total liabilities and shareholders' equity
9,448.1 
6,615.9 
 
 
Pride International Inc. [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
4.9 
85.0 
22.6 
Accounts receivable
 
 
Accounts receivable from affiliates
5.5 
 
 
Other
 
 
Total current assets
10.4 
85.0 
 
 
PROPERTY AND EQUIPMENT, AT COST
 
 
Less accumulated depreciation
 
 
Property and equipment, net
 
 
GOODWILL
 
 
DUE FROM AFFILIATES
1,898.0 
1,628.4 
 
 
INVESTMENTS IN AFFILIATES
4,092.2 
3,824.8 
 
 
OTHER ASSETS, NET
 
 
TOTAL ASSETS
6,000.6 
5,538.2 
 
 
Accounts payable and accrued liabilities
34.2 
34.1 
 
 
Accounts payable to affiliates
 
 
Current maturities of long-term debt
 
 
Total current liabilities
34.2 
34.1 
 
 
DUE TO AFFILIATES
1,331.1 
877.5 
 
 
LONG-TERM DEBT
2,007.8 
2,040.8 
 
 
DEFERRED INCOME TAXES
 
 
OTHER LIABILITIES
8.7 
10.8 
 
 
ENSCO SHAREHOLDERS' EQUITY
2,618.8 
2,575.0 
 
 
NONCONTROLLING INTERESTS
 
 
Total equity
2,618.8 
2,575.0 
 
 
Total liabilities and shareholders' equity
6,000.6 
5,538.2 
 
 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
113.7 
128.6 
171.5 
1,028.2 
Accounts receivable
855.7 
811.2 
 
 
Accounts receivable from affiliates
4,169.2 
2,375.1 
 
 
Other
449.4 
397.7 
 
 
Total current assets
5,588.0 
3,712.6 
 
 
PROPERTY AND EQUIPMENT, AT COST
17,462.1 
15,704.8 
 
 
Less accumulated depreciation
3,159.5 
2,566.9 
 
 
Property and equipment, net
14,302.6 
13,137.9 
 
 
GOODWILL
3,274.0 
3,274.0 
 
 
DUE FROM AFFILIATES
5,069.7 
4,748.9 
 
 
INVESTMENTS IN AFFILIATES
 
 
OTHER ASSETS, NET
283.8 
343.1 
 
 
TOTAL ASSETS
28,518.1 
25,216.5 
 
 
Accounts payable and accrued liabilities
925.0 
849.0 
 
 
Accounts payable to affiliates
1,407.7 
1,394.4 
 
 
Current maturities of long-term debt
47.5 
47.5 
 
 
Total current liabilities
2,380.2 
2,290.9 
 
 
DUE TO AFFILIATES
10,958.2 
8,706.6 
 
 
LONG-TERM DEBT
88.3 
139.0 
 
 
DEFERRED INCOME TAXES
3.8 
16.6 
 
 
OTHER LIABILITIES
534.7 
562.6 
 
 
ENSCO SHAREHOLDERS' EQUITY
14,545.6 
13,495.1 
 
 
NONCONTROLLING INTERESTS
7.3 
5.7 
 
 
Total equity
14,552.9 
13,500.8 
 
 
Total liabilities and shareholders' equity
28,518.1 
25,216.5 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Guarantor Obligations [Line Items]
 
 
 
 
Cash and cash equivalents
Accounts receivable
 
 
Accounts receivable from affiliates
(5,623.5)
(3,896.1)
 
 
Other
 
 
Total current assets
(5,623.5)
(3,896.1)
 
 
PROPERTY AND EQUIPMENT, AT COST
 
 
Less accumulated depreciation
 
 
Property and equipment, net
 
 
GOODWILL
 
 
DUE FROM AFFILIATES
(16,080.5)
(13,455.5)
 
 
INVESTMENTS IN AFFILIATES
(22,790.9)
(19,987.9)
 
 
OTHER ASSETS, NET
 
 
TOTAL ASSETS
(44,494.9)
(37,339.5)
 
 
Accounts payable and accrued liabilities
 
 
Accounts payable to affiliates
(5,623.5)
(3,896.1)
 
 
Current maturities of long-term debt
 
 
Total current liabilities
(5,623.5)
(3,896.1)
 
 
DUE TO AFFILIATES
(16,080.5)
(13,455.5)
 
 
LONG-TERM DEBT
 
 
DEFERRED INCOME TAXES
 
 
OTHER LIABILITIES
 
 
ENSCO SHAREHOLDERS' EQUITY
(22,790.9)
(19,987.9)
 
 
NONCONTROLLING INTERESTS
 
 
Total equity
(22,790.9)
(19,987.9)
 
 
Total liabilities and shareholders' equity
$ (44,494.9)
$ (37,339.5)
 
 
Guarantee Of Registered Securities (Condensed Consolidating Statements Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 31 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
$ 1,980.3 
$ 2,200.2 
$ 731.8 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
(2,656.0)
 
Additions to property and equipment
(1,779.2)
(1,802.2)
(729.0)
 
Purchases of short-term investments
(50.0)
(90.0)
(4.5)
 
Maturities of short-term investments
50.0 
44.5 
 
Advance payment received on sale of assets
33.0 
 
Other
6.0 
3.2 
5.3 
 
Net cash used in investing activities of continuing operations
(1,740.2)
(1,844.5)
(3,384.2)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
2,462.8 
 
Cash dividends paid
(525.6)
(348.1)
(292.3)
 
Commercial paper borrowings, net
(125.0)
125.0 
 
Equity financing costs
66.7 
(70.5)
 
Reduction of long-term borrowings
(47.5)
(47.5)
(213.3)
 
Proceeds from exercise of share options
22.3 
35.8 
39.9 
 
Debt financing costs
(4.6)
(31.8)
 
Advances (to) from affiliates
 
Other
(21.7)
(17.4)
(15.7)
 
Net cash (used in) provided by financing activities of continuing operations
(577.1)
(435.5)
2,004.1 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0.2 
(13.1)
0.4 
 
Investing activities
15.5 
147.3 
28.7 
 
Net cash provided by discontinued operations
15.7 
134.2 
29.1 
203.0 1
Effect of exchange rate changes on cash and cash equivalents
(0.2)
2.0 
(0.8)
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(321.5)
56.4 
(620.0)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
487.1 
430.7 
1,050.7 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
165.6 
487.1 
430.7 
165.6 
Ensco Plc [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(114.8)
(71.6)
2.0 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
 
 
Additions to property and equipment
 
Purchases of short-term investments
 
Maturities of short-term investments
 
 
Advance payment received on sale of assets
 
 
 
Other
(0.3)
 
Net cash used in investing activities of continuing operations
(0.3)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
 
2,462.8 
 
Cash dividends paid
(525.6)
(348.1)
(292.3)
 
Commercial paper borrowings, net
 
(125.0)
125.0 
 
Equity financing costs
 
66.7 
(70.5)
 
Reduction of long-term borrowings
 
Proceeds from exercise of share options
22.3 
23.9 
 
Debt financing costs
 
(27.1)
 
Advances (to) from affiliates
407.2 
501.2 
(1,956.1)
 
Other
(14.4)
(11.6)
(10.6)
 
Net cash (used in) provided by financing activities of continuing operations
(110.5)
107.1 
231.2 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
 
Investing activities
 
Net cash provided by discontinued operations
 
Effect of exchange rate changes on cash and cash equivalents
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(225.3)
35.2 
233.2 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
271.8 
236.6 
3.4 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
46.5 
271.8 
236.6 
46.5 
ENSCO International Inc. [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(128.7)
(38.2)
(2.6)
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
 
 
Additions to property and equipment
 
Purchases of short-term investments
 
Maturities of short-term investments
 
 
Advance payment received on sale of assets
 
 
 
Other
(4.1)
0.4 
(6.1)
 
Net cash used in investing activities of continuing operations
(4.1)
0.4 
(6.1)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
 
 
Cash dividends paid
 
Commercial paper borrowings, net
 
 
Equity financing costs
 
 
Reduction of long-term borrowings
 
Proceeds from exercise of share options
11.9 
39.9 
 
Debt financing costs
(4.6)
 
(4.7)
 
Advances (to) from affiliates
136.2 
27.6 
(34.5)
 
Other
 
Net cash (used in) provided by financing activities of continuing operations
131.6 
39.5 
0.7 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
(11.1)
 
Investing activities
 
Net cash provided by discontinued operations
(11.1)
 
Effect of exchange rate changes on cash and cash equivalents
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(1.2)
1.7 
(19.1)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
1.7 
19.1 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
0.5 
1.7 
0.5 
Pride International Inc. [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
(62.9)
(21.6)
(59.9)
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
 
92.9 
 
Additions to property and equipment
 
Purchases of short-term investments
 
Maturities of short-term investments
 
 
Advance payment received on sale of assets
 
 
 
Other
 
Net cash used in investing activities of continuing operations
92.9 
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
 
 
Cash dividends paid
 
Commercial paper borrowings, net
 
 
Equity financing costs
 
 
Reduction of long-term borrowings
(181.0)
 
Proceeds from exercise of share options
 
 
Debt financing costs
 
 
Advances (to) from affiliates
(17.2)
84.0 
170.6 
 
Other
 
Net cash (used in) provided by financing activities of continuing operations
(17.2)
84.0 
(10.4)
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
 
Investing activities
 
Net cash provided by discontinued operations
 
Effect of exchange rate changes on cash and cash equivalents
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(80.1)
62.4 
22.6 
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
85.0 
22.6 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
4.9 
85.0 
22.6 
4.9 
Other Non-Guarantor Subsidiaries Of Ensco [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
2,286.7 
2,331.6 
792.3 
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
 
(2,748.9)
 
Additions to property and equipment
(1,779.2)
(1,802.2)
(729.0)
 
Purchases of short-term investments
(50.0)
(90.0)
(4.5)
 
Maturities of short-term investments
50.0 
44.5 
 
 
Advance payment received on sale of assets
33.0 
 
 
 
Other
10.1 
3.1 
11.4 
 
Net cash used in investing activities of continuing operations
(1,736.1)
(1,844.6)
(3,471.0)
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
 
 
Cash dividends paid
 
Commercial paper borrowings, net
 
 
Equity financing costs
 
 
Reduction of long-term borrowings
(47.5)
(47.5)
(32.3)
 
Proceeds from exercise of share options
 
 
Debt financing costs
 
 
Advances (to) from affiliates
(526.2)
(612.8)
1,820.0 
 
Other
(7.3)
(5.8)
(5.1)
 
Net cash (used in) provided by financing activities of continuing operations
(581.0)
(666.1)
1,782.6 
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
0.2 
(13.1)
11.5 
 
Investing activities
15.5 
147.3 
28.7 
 
Net cash provided by discontinued operations
15.7 
134.2 
40.2 
 
Effect of exchange rate changes on cash and cash equivalents
(0.2)
2.0 
(0.8)
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(14.9)
(42.9)
(856.7)
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
128.6 
171.5 
1,028.2 
 
CASH AND CASH EQUIVALENTS, END OF YEAR
113.7 
128.6 
171.5 
113.7 
Consolidating Adjustments [Member]
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
Net cash (used in) provided by operating activities of continuing operations
 
INVESTING ACTIVITIES
 
 
 
 
Acquisition of Pride International, Inc., net of cash acquired
 
 
 
Additions to property and equipment
 
Purchases of short-term investments
 
Maturities of short-term investments
 
 
Advance payment received on sale of assets
 
 
 
Other
 
Net cash used in investing activities of continuing operations
 
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of senior notes
 
 
 
Cash dividends paid
 
Commercial paper borrowings, net
 
 
Equity financing costs
 
 
Reduction of long-term borrowings
 
Proceeds from exercise of share options
 
 
Debt financing costs
 
 
Advances (to) from affiliates
 
Other
 
Net cash (used in) provided by financing activities of continuing operations
 
DISCONTINUED OPERATIONS
 
 
 
 
Operating activities
 
Investing activities
 
Net cash provided by discontinued operations
 
Effect of exchange rate changes on cash and cash equivalents
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
 
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
 
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, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Quarterly Financial Data [Abstract]
 
 
 
 
 
 
 
 
 
 
 
OPERATING REVENUES
$ 1,255.6 
$ 1,266.2 
$ 1,248.1 
$ 1,149.9 
$ 1,085.5 
$ 1,123.5 
$ 1,071.1 
$ 1,020.6 
$ 4,919.8 
$ 4,300.7 
$ 2,797.7 
Contract drilling (exclusive of depreciation)
615.7 
619.2 
606.8 
560.8 
524.5 
507.3 
494.0 
502.2 
2,402.5 
2,028.0 
1,449.1 
Depreciation
156.7 
153.3 
152.9 
149.0 
143.9 
142.4 
136.3 
136.0 
611.9 
558.6 
408.9 
General and administrative
35.2 
37.4 
36.4 
37.8 
35.0 
40.2 
35.5 
38.2 
146.8 
148.9 
158.6 
OPERATING INCOME
448.0 
456.3 
452.0 
402.3 
382.1 
433.6 
405.3 
344.2 
1,758.6 
1,565.2 
781.1 
Other income (expense), net
(28.9)
(1.6)
(39.8)
(29.8)
(21.7)
(25.5)
(24.7)
(26.7)
(100.1)
(98.6)
(57.9)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
419.1 
454.7 
412.2 
372.5 
360.4 
408.1 
380.6 
317.5 
1,658.5 
1,466.6 
723.2 
Provision for income taxes
51.0 
73.3 
49.6 
51.7 
117.1 
46.9 
43.4 
37.0 
225.6 
244.4 
115.4 
Income from continuing operations
368.1 
381.4 
362.6 
320.8 
243.3 
361.2 
337.2 
280.5 
1,432.9 
1,222.2 
607.8 
DISCONTINUED OPERATIONS, NET
(4.1)
(0.9)
(22.1)
(15.8)
5.5 
(13.1)
(5.0)
(45.5)
(2.2)
NET INCOME
364.0 
381.4 
362.6 
319.9 
221.2 
345.4 
342.7 
267.4 
1,427.9 
1,176.7 
605.6 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(2.6)
(2.6)
(1.7)
(2.8)
(1.7)
(1.9)
(1.4)
(2.0)
(9.7)
(7.0)
(5.2)
NET INCOME ATTRIBUTABLE TO ENSCO
$ 361.4 
$ 378.8 
$ 360.9 
$ 317.1 
$ 219.5 
$ 343.5 
$ 341.3 
$ 265.4 
$ 1,418.2 
$ 1,169.7 
$ 600.4 
EARNINGS PER SHARE - BASIC
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.57 
$ 1.62 
$ 1.55 
$ 1.37 
$ 1.04 
$ 1.55 
$ 1.45 
$ 1.21 
$ 6.10 
$ 5.24 
$ 3.10 
Discontinued operations
$ (0.02)
$ 0.00 
$ 0.00 
$ (0.01)
$ (0.10)
$ (0.07)
$ 0.02 
$ (0.06)
$ (0.02)
$ (0.19)
$ (0.01)
Total earnings per share - basic
$ 1.55 
$ 1.62 
$ 1.55 
$ 1.36 
$ 0.94 
$ 1.48 
$ 1.47 
$ 1.15 
$ 6.08 
$ 5.05 
$ 3.09 
EARNINGS PER SHARE - DILUTED
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.56 
$ 1.62 
$ 1.55 
$ 1.36 
$ 1.04 
$ 1.55 
$ 1.45 
$ 1.20 
$ 6.09 
$ 5.23 
$ 3.09 
Discontinued operations
$ (0.02)
$ 0.00 
$ 0.00 
$ 0.00 
$ (0.10)
$ (0.07)
$ 0.02 
$ (0.05)
$ (0.02)
$ (0.19)
$ (0.01)
Total earnings per share - diluted
$ 1.54 
$ 1.62 
$ 1.55 
$ 1.36 
$ 0.94 
$ 1.48 
$ 1.47 
$ 1.15 
$ 6.07 
$ 5.04 
$ 3.08 
Subsequent Events Subsequent Events (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jan. 31, 2014
Subsequent Event [Member]
rigs
Dec. 31, 2013
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
Number of Rigs Sold
 
 
 
 
Advance payment received on sale of assets
$ 33.0 
$ 0 
$ 0 
 
$ 33.0 
Assets Held-for-sale, Long Lived
$ 8.6