ENSCO PLC, 8-K filed on 9/22/2014
Current report filing
Document And Entity Information
3 Months Ended
Mar. 31, 2014
Apr. 21, 2014
Document And Entity Information [Abstract]
 
 
Document Type
8-K 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Entity Registrant Name
Ensco plc 
 
Entity Central Index Key
0000314808 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Shares, Shares Outstanding
 
233,662,387 
Condensed Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Income Statement [Abstract]
 
 
OPERATING REVENUES
$ 1,129.9 
$ 1,040.3 
OPERATING EXPENSES
 
 
Contract drilling (exclusive of depreciation)
552.6 
479.8 
Depreciation
139.2 
127.9 
General and administrative
38.1 
37.8 
Total operating expenses
729.9 
645.5 
OPERATING (LOSS) INCOME
400.0 
394.8 
OTHER INCOME (EXPENSE)
 
 
Interest income
3.6 
3.3 
Interest expense, net
(34.6)
(39.2)
Other, net
1.9 
6.1 
Other income (expense), net
(29.1)
(29.8)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
370.9 
365.0 
PROVISION FOR INCOME TAXES
 
 
Current income tax expense
58.5 
55.9 
Deferred income tax (benefit) expense
(5.6)
(5.1)
Total provision for income taxes
52.9 
50.8 
INCOME FROM CONTINUING OPERATIONS
318.0 
314.2 
DISCONTINUED OPERATIONS, NET
(21.3)
5.7 
NET INCOME
296.7 
319.9 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(4.2)
(2.8)
NET INCOME ATTRIBUTABLE TO ENSCO
292.5 
317.1 
EARNINGS PER SHARE - DILUTED
 
 
Income (Loss) from Continuing Operations, Per Basic and Diluted Share
$ 1.34 
$ 1.34 
Earnings Per Share, Basic and Diluted
$ 1.25 
$ 1.36 
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share
$ (0.09)
$ 0.02 
NET INCOME ATTRIBUTABLE TO ENSCO SHARES - BASIC AND DILUTED
$ 289.5 
$ 313.8 
WEIGHTED-AVERAGE SHARES OUTSTANDING
 
 
Basic (in shares)
231.3 
230.3 
Diluted (in shares)
231.4 
230.6 
CASH DIVIDENDS PER SHARE (in dollars per share)
$ 0.750 
$ 0.500 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
NET INCOME
$ 296.7 
$ 319.9 
OTHER COMPREHENSIVE (LOSS) INCOME, NET
 
 
Net change in fair value of derivatives
4.9 
(4.0)
Reclassification of net losses (gains) on derivative instruments from other comprehensive income into net income
0.5 
(1.0)
Other
(0.1)
NET OTHER COMPREHENSIVE (LOSS) INCOME
5.4 
(5.1)
COMPREHENSIVE INCOME
302.1 
314.8 
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(4.2)
(2.8)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$ 297.9 
$ 312.0 
Condensed Consolidated Balance Sheets (USD $)
Mar. 31, 2014
Dec. 31, 2013
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 122,500,000 
$ 165,600,000 
Accounts receivable, net
779,600,000 
855,700,000 
Other
570,300,000 
513,900,000 
Total current assets
1,472,400,000 
1,535,200,000 
PROPERTY AND EQUIPMENT, AT COST
17,700,700,000 
17,498,500,000 
Less accumulated depreciation
3,282,400,000 
3,187,500,000 
Property and equipment, net
14,418,300,000 
14,311,000,000 
GOODWILL
3,274,000,000 
3,274,000,000 
OTHER ASSETS, NET
356,500,000 
352,700,000 
TOTAL ASSETS
19,521,200,000 
19,472,900,000 
CURRENT LIABILITIES
 
 
Accounts payable - trade
411,900,000 
341,100,000 
Accrued liabilities and other
493,500,000 
658,700,000 
Current maturities of long-term debt
47,500,000 
47,500,000 
Total current liabilities
952,900,000 
1,047,300,000 
LONG-TERM DEBT
4,703,700,000 
4,718,900,000 
DEFERRED INCOME TAXES
364,700,000 
362,100,000 
OTHER LIABILITIES
569,100,000 
545,700,000 
COMMITMENTS AND CONTINGENCIES
   
   
ENSCO SHAREHOLDERS' EQUITY
 
 
Additional paid-in capital
5,479,100,000 
5,467,200,000 
Retained earnings
7,444,100,000 
7,327,300,000 
Accumulated other comprehensive income
23,600,000 
18,200,000 
Treasury shares, at cost
(49,300,000)
(45,200,000)
Total Ensco shareholders' equity
12,921,600,000 
12,791,600,000 
NONCONTROLLING INTERESTS
9,200,000 
7,300,000 
Total equity
12,930,800,000 
12,798,900,000 
Total liabilities and shareholders' equity
19,521,200,000 
19,472,900,000 
Class A ordinary shares, U.S. [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
24,000,000 
24,000,000 
Common Class B, Par Value In GBP [Member]
 
 
ENSCO SHAREHOLDERS' EQUITY
 
 
Common shares, value
$ 100,000 
$ 100,000 
Condensed Consolidated Balance Sheets (Parenthetical)
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Class A ordinary shares, U.S. [Member]
USD ($)
Dec. 31, 2013
Class A ordinary shares, U.S. [Member]
USD ($)
Mar. 31, 2014
Common Class B, Par Value In GBP [Member]
GBP (£)
Dec. 31, 2013
Common Class B, Par Value In GBP [Member]
GBP (£)
Common stock, par value per share (in dollars per share or pounds sterling per share)
 
 
$ 0.10 
$ 0.10 
£ 1 
£ 1 
Common shares, shares authorized (in shares)
 
 
450,000,000 
450,000,000 
50,000 
50,000 
Common shares, shares issued (in shares)
 
 
239,500,000 
239,500,000 
50,000 
50,000 
Treasury shares, shares held (in shares)
5,900,000 
6,000,000 
 
 
 
 
Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
OPERATING ACTIVITIES
 
 
Net income
$ 296.7 
$ 319.9 
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
 
 
Discontinued operations, net
21.3 
(5.7)
Depreciation expense
139.2 
127.9 
Gain (Loss) on Disposition of Property Plant Equipment
(0.1)
(0.6)
Other Noncash Income (Expense)
(0.1)
6.4 
Share-based compensation expense
11.9 
12.8 
Deferred income tax (benefit) expense
(5.6)
(5.1)
Amortization of intangibles and other, net
(2.8)
(9.3)
Changes in operating assets and liabilities
(18.2)
(134.7)
Net cash provided by operating activities of continuing operations
442.5 
298.8 
INVESTING ACTIVITIES
 
 
Additions to property and equipment
(273.4)
(164.7)
Other
0.8 
0.9 
Net cash provided by (used in) investing activities of continuing operations
(272.6)
(163.8)
FINANCING ACTIVITIES
 
 
Cash dividends paid
(175.7)
(116.5)
Reduction of long-term borrowings
(7.1)
(7.1)
Proceeds from exercise of share options
0.2 
13.4 
Other
(6.4)
(5.5)
Net cash provided by (used in) financing activities
(189.0)
(115.7)
DISCONTINUED OPERATIONS
 
 
Operating activities
(25.9)
43.5 
Investing activities
1.8 
11.9 
Net cash provided by discontinued operations
(24.1)
55.4 
Effect of exchange rate changes on cash and cash equivalents
0.1 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(43.1)
74.7 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
165.6 
487.1 
CASH AND CASH EQUIVALENTS, END OF PERIOD
$ 122.5 
$ 561.8 
Unaudited Condensed Consolidated Financial Statements
Unaudited Condensed Consolidated Financial Statements
Unaudited Condensed Consolidated Financial Statements
 
We prepared the accompanying condensed consolidated financial statements of Ensco plc and subsidiaries (the "Company," "Ensco," "our," "we" or "us") in accordance with accounting principles generally accepted in the United States of America ("GAAP"), pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") included in the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial information included in this report is unaudited but, in our opinion, includes all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The December 31, 2013 condensed consolidated balance sheet data were derived from our 2013 audited consolidated financial statements, but do not include all disclosures required by GAAP. Certain previously reported amounts have been reclassified to conform to the current year presentation. The preparation of our condensed consolidated financial statements 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.
 
The financial data for the quarters ended March 31, 2014 and 2013 included herein have been subjected to a limited review by KPMG LLP, our independent registered public accounting firm. The accompanying independent registered public accounting firm's review report is not a report within the meaning of Sections 7 and 11 of the Securities Act of 1933, and the independent registered public accounting firm's liability under Section 11 does not extend to it.
 
Results of operations for the quarter ended March 31, 2014 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2014. We recommend these condensed consolidated financial statements be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 26, 2014, as updated by the Current Report on Form 8-K dated September 22, 2014.
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 (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 March 31, 2014
 
 
 

 
 

 
 

Supplemental executive retirement plan assets 
$
39.2

 
$

 
$

 
$
39.2

Derivatives, net 

 
8.8

 

 
8.8

Total financial assets
$
39.2

 
$
8.8

 
$

 
$
48.0

 
 
 
 
 
 
 
 
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



Supplemental Executive Retirement Plan Assets
 
Our supplemental executive retirement plans (the "SERP") are non-qualified plans that provide eligible employees an opportunity 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 condensed consolidated balance sheets. The fair value measurement of assets held in the SERP was based on quoted market prices.
 
Derivatives
 
Our derivatives were measured at fair value on a recurring basis using Level 2 inputs. See "Note 3 - 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 measurement of our derivatives was 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 long-term debt instruments were as follows (in millions):
 
March 31,
2014
 
December 31,
2013
 
Carrying Value  
 
Estimated Fair Value  
 
Carrying Value  
 
Estimated Fair Value  
4.70% Senior notes due 2021
$
1,477.9

 
$
1,614.8

 
$
1,477.2

 
$
1,596.9

6.875% Senior notes due 2020
1,020.7

 
1,076.6

 
1,024.8

 
1,086.7

3.25% Senior notes due 2016
996.9

 
1,043.3

 
996.5

 
1,045.8

8.50% Senior notes due 2019
596.4

 
632.5

 
600.5

 
635.8

7.875% Senior notes due 2040
382.2

 
427.3

 
382.6

 
410.5

7.20% Debentures due 2027
149.1

 
182.4

 
149.1

 
178.6

4.33% MARAD bonds, including current maturities, due 2016
71.2

 
71.6

 
78.9

 
79.7

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

 
34.9

 
31.5

 
35.2

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

 
26.7

 
25.3

 
27.1

Total
$
4,751.2

 
$
5,110.1

 
$
4,766.4

 
$
5,096.3



The estimated fair values of our senior notes and debentures were determined using quoted market prices. The estimated fair values of our 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 March 31, 2014 and December 31, 2013.
Derivative Instruments
Derivative Instruments
Derivative Instruments
    
Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues 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. We use foreign currency forward contracts to reduce our exposure to various market risks, primarily foreign currency exchange rate risk.
 
All derivatives were recorded on our condensed consolidated balance sheets at fair value. Derivatives subject to legally enforceable master netting agreements were not offset in our condensed 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.  Net assets of $8.8 million and $1.8 million associated with our foreign currency forward contracts were included on our condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively.  All of our derivatives mature during the next 18 months.  See "Note 2 - Fair Value Measurements" for additional information on the fair value measurement of our derivatives.
 
Derivatives recorded at fair value on our condensed consolidated balance sheets consisted of the following (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
March 31,
2014
 
December 31,
2013
 
March 31,
2014
 
December 31,
2013
Derivatives Designated as Hedging Instruments
 
 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
11.0

 
$
9.1

 
$
3.0

 
$
9.8

Foreign currency forward contracts - non-current(2)
1.0

 
1.2

 
.1

 
.6

 
12.0

 
10.3

 
3.1

 
10.4

Derivatives Not Designated as Hedging Instruments
 
 
 

 
 

 
 

Foreign currency forward contracts - current(1)
1.2

 
2.5

 
1.3

 
.6

 
1.2

 
2.5

 
1.3

 
.6

Total
$
13.2

 
$
12.8

 
$
4.4

 
$
11.0

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

(2) 
Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets, net, and other liabilities, respectively, on our condensed 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 March 31, 2014, we had cash flow hedges outstanding to exchange an aggregate $392.2 million for various foreign currencies, including $188.3 million for British pounds, $118.1 million for Brazilian reais, $34.8 million for Singapore dollars, $22.6 million for euros, $19.4 million for Australian dollars and $9.0 million for other currencies.

Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our condensed consolidated statements of income and comprehensive income for the quarters ended March 31, 2014 and 2013 were as follows (in millions):

 
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") (Effective Portion)  
 
(Loss) Gain Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)(1)
 
Gain Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(2)
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Interest rate lock contracts(3)
$

 
$

 
$
(.1
)
 
$
(.1
)
 
$

 
$

Foreign currency forward contracts(4)
4.9

 
(4.0
)
 
(.4
)
 
1.1

 
.7

 
.2

Total
$
4.9

 
$
(4.0
)
 
$
(.5
)
 
$
1.0

 
$
.7

 
$
.2



(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 condensed 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 condensed consolidated statements of income.

(4) 
During the quarter ended March 31, 2014, $600,000 of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of income. During the quarter ended March 31, 2013, $900,000 of gains were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed 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 March 31, 2014, we held derivatives not designated as hedging instruments to exchange an aggregate $223.0 million for various foreign currencies, including $109.7 million for euros, $30.6 million for British pounds, $25.7 million for Swiss francs, $19.1 million for Indonesian rupiah, $15.2 million for Australian dollars and $22.7 million for other currencies.
     
Net losses of $600,000 and $4.4 million associated with our derivatives not designated as hedging instruments were included in other, net in our condensed consolidated statements of income for the quarters ended March 31, 2014 and 2013, respectively.

As of March 31, 2014, the estimated amount of net gains associated with derivative instruments, net of tax, that would be reclassified into earnings during the next twelve months totaled $4.3 million.
Noncontrolling Interests (Notes)
Noncontrolling Interests
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 condensed consolidated balance sheets, and net income attributable to noncontrolling interests is presented separately in our condensed consolidated statements of income.
    
Income from continuing operations attributable to Ensco for the quarters ended March 31, 2014 and 2013 was as follows (in millions):
 
2014
 
2013
Income from continuing operations
$
318.0

 
$
314.2

Income from continuing operations attributable to noncontrolling interests
(4.1
)
 
(2.7
)
Income from continuing operations attributable to Ensco
$
313.9

 
$
311.5



(Loss) income from discontinued operations, net attributable to Ensco for the quarters ended March 31, 2014 and 2013 was as follows (in millions):
 
2014
 
2013
(Loss) income from discontinued operations, net
$
(21.3
)
 
$
5.7

Income from discontinued operations attributable to noncontrolling interests
(.1
)
 
(.1
)
(Loss) income from continuing operations attributable to Ensco
$
(21.4
)
 
$
5.6

Earnings Per Share
Earnings Per Share
Earnings Per Share
 
We compute basic and diluted earnings per share ("EPS") in accordance with the two-class method. Net income attributable to Ensco used in our computations of basic and diluted EPS is adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS 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 the quarters ended March 31, 2014 and 2013 (in millions):
 
2014
 
2013
Net income attributable to Ensco
$
292.5

 
$
317.1

Net income allocated to non-vested share awards
(3.0
)
 
(3.3
)
Net income attributable to Ensco shares
$
289.5

 
$
313.8

 
The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the quarters ended March 31, 2014 and 2013 (in millions):
 
2014
 
2013
Weighted-average shares - basic
231.3

 
230.3

Potentially dilutive shares
.1

 
.3

Weighted-average shares - diluted
231.4

 
230.6

 
Antidilutive share options totaling 400,000 and 100,000 were excluded from the computation of diluted EPS for the quarters ended March 31, 2014 and 2013, respectively.
Discontinued Operations (Notes)
Discontinued Operations
Discontinued Operations
    
During the quarter ended June 30, 2014, management committed to a plan to sell five floaters. The ENSCO 5000, ENSCO 5001, ENSCO 5002, ENSCO 6000 and ENSCO 7500 were removed from our portfolio of rigs marketed for contract drilling services and are being actively marketed for sale. The operating results from these rigs were included in (loss) income from discontinued operations, net in our condensed consolidated statement of income for the quarters ended March 31, 2014 and 2013.

In connection with the sale of the ENSCO 7500, we will be required to pay the outstanding principal on the 6.36% MARAD bonds due 2015, which are collateralized by this rig. The outstanding principal balance on this bond is $25.3 million as of March 31, 2014, of which $12.7 million is included in current maturities of long-term debt on our condensed consolidated balance sheet as of March 31, 2014.

During the quarter ended June 30, 2014, we sold ENSCO 85 for net proceeds of $64.4 million. The rig was classified as held for sale as of March 31, 2014. ENSCO 85 operating results were included in (loss) income from discontinued operations, net in our condensed consolidated statement of income for the quarters ended March 31, 2014 and 2013.

During the quarter ended March 31, 2014, we sold ENSCO 69 and Pride Wisconsin for net proceeds of $32.2 million. These rigs were classified as held for sale as of December 31, 2013. The proceeds from the sale were received in December 2013 and included in net cash used in investing activities of discontinued operations in our consolidated statement of cash flows for the year ended December 31, 2013 in our annual report on Form 10-K for the year ended December 31, 2013. ENSCO 69 and Pride Wisconsin operating results were included in (loss) income from discontinued operations, net in our condensed consolidated statement of income for the quarters ended March 31, 2014 and 2013. We recognized a gain of $19.4 million in connection with the disposal, which was also included in (loss) income from discontinued operations, net in our condensed consolidated statement of income for the quarter ended March 31, 2014.
    
During the first quarter of 2013, we sold Pride Pennsylvania for net proceeds of $15.5 million. The rig was classified as held for sale and included in discontinued operations during 2012 in connection with the sale of multiple rigs in our fleet. The proceeds from the sale were included in investing activities of discontinued operations in our condensed consolidated statement of cash flows for the quarter ended March 31, 2013. We recognized a loss of $1.1 million in connection with the disposal, which was included in (loss) income from discontinued operations, net, in our condensed consolidated statement of income for the quarter ended March 31, 2013. Pride Pennsylvania operating results were included in (loss) income from discontinued operations, net in our condensed consolidated statement of income for the quarter ended March 31, 2013.

The following table summarizes (loss) income from discontinued operations, net, for the quarters ended March 31, 2014 and 2013 (in millions):
 
2014
 
2013
Revenues
$
57.1

 
$
109.7

Operating expenses
96.2

 
102.3

Operating (loss) income
(39.1
)
 
7.4

Other income

 
.3

Income tax expense
(1.6
)
 
(0.9
)
Income (loss) on disposal of discontinued operations, net
19.4

 
(1.1
)
(Loss) income from discontinued operations, net
$
(21.3
)
 
$
5.7



Debt and interest expense are not allocated to our discontinued operations.
Income Taxes
Income Taxes
Income Taxes
 
Our consolidated effective income tax rate for the quarter ended March 31, 2014 was 14.3% as compared to 13.9% in the prior year quarter. Excluding the impact of discrete tax items, our consolidated effective income tax rate for the quarters ended March 31, 2014 and 2013 was 10.9% and 12.1%, respectively.

Discrete tax expense for the quarter ended March 31, 2014 was primarily attributable to the recognition of a liability for unrecognized tax benefits associated with certain tax positions taken in prior years and the resolution of prior period tax matters. Discrete tax expense for the quarter ended March 31, 2013 was primarily attributable to the recognition of a liability for unrecognized tax benefits associated with a tax position taken in prior years.
Contingencies
Contingencies
Contingencies

ENSCO 74 Loss

During 2008, ENSCO 74 was lost as a result of Hurricane Ike in the U.S. Gulf of Mexico.  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.

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 one claimant remains. 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 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. During the first quarter of 2014, we reached an agreement 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. An accrued liability of $6.4 million for the remainder of our deductible under our liability insurance policy was included in accrued liabilities and other on our condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013. In April 2014, we paid the $6.4 million balance of our deductible under our liability insurance policy. The remaining $3.2 million of settlement proceeds was paid by our underwriters under the terms of the related insurance policies.

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. This matter is currently scheduled for trial in June 2014. 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 self-insured retention is $15.0 million for two occurrences and $1.0 million for each occurrence thereafter.

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

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

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 settlement will be 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 March 31, 2014 totaled $242.7 million and were 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 March 31, 2014, 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 the quarters ended March 31, 2014 and 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.

Three Months Ended March 31, 2014
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
Revenues
$
690.2

 
$
423.1

 
$
16.6

 
$
1,129.9

 
$

 
$
1,129.9

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
326.1

 
215.2

 
11.3

 
552.6

 

 
552.6

Depreciation
96.4

 
40.9

 

 
137.3

 
1.9

 
139.2

General and administrative

 

 

 

 
38.1

 
38.1

Operating income (loss)
$
267.7

 
$
167.0

 
$
5.3

 
$
440.0

 
$
(40.0
)
 
$
400.0

Property and equipment, net
$
11,376.2

 
$
2,986.1

 
$

 
$
14,362.3

 
$
56.0

 
$
14,418.3


Three Months Ended March 31, 2013
 
Floaters
 
Jackups
 
Other
 
Operating Segments Total
 
Reconciling Items
 
Consolidated Total
Revenues
$
625.3

 
$
394.8

 
$
20.2

 
$
1,040.3

 
$

 
$
1,040.3

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
270.6

 
193.5

 
15.7

 
479.8

 

 
479.8

Depreciation
87.7

 
38.6

 

 
126.3

 
1.6

 
127.9

General and administrative

 

 

 

 
37.8

 
37.8

Operating income (loss)
$
267.0

 
$
162.7

 
$
4.5

 
$
434.2

 
$
(39.4
)
 
$
394.8

Property and equipment, net
$
10,710.0

 
$
2,413.3

 
$

 
$
13,123.3

 
$
31.9

 
$
13,155.2


Information about Geographic Areas    

As of March 31, 2014, the geographic distribution of our drilling rigs by reportable segment was as follows:
 
Floaters(1)

 
Jackups(1)(2)

 
Total(3)

North & South America (excluding Brazil)
9
 
12
 
21
Middle East & Africa
6
 
10
 
16
Asia & Pacific Rim
4
 
10
 
14
Europe & Mediterranean
1
 
10
 
11
Brazil
6
 
 
6
Asia & Pacific Rim (under construction)
3
 
3
 
6
Total
29
 
45
 
74

(1) 
The table above includes the five floaters classified as "held for sale" as of June 30, 2014, and ENSCO 85 which was sold during the quarter ended June 30, 2014.

(2) 
In April 2014, we entered into an agreement with Lamprell plc to construct two premium jackup rigs (ENSCO 140 and ENSCO 141), which are scheduled for delivery during mid-2016. ENSCO 140 and ENSCO 141 are not included in the table above. 

(3) 
We provide management services on two rigs owned by third-parties not included in the table above.
Supplemental Financial Information
Supplemental Financial Information
Supplemental Financial Information

Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Trade
$
773.6

 
$
869.8

Other
18.3

 
14.3

 
791.9

 
884.1

Allowance for doubtful accounts
(12.3
)
 
(28.4
)
 
$
779.6

 
$
855.7



Other current assets consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Inventory
$
262.1

 
$
256.4

Prepaid taxes
76.1

 
88.1

Deferred costs
55.6

 
47.4

Assets held for sale
53.7

 
8.6

Short-term investments
50.0

 
50.0

Prepaid expenses
28.2

 
18.5

Deferred tax assets
22.9

 
23.1

Derivative assets
12.2

 
11.6

Other
9.5

 
10.2

 
$
570.3

 
$
513.9

 
    
Other assets, net, consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Deferred costs
$
76.0

 
$
59.1

Intangible assets
75.3

 
83.8

Prepaid taxes on intercompany transfers of property
48.6

 
50.2

Unbilled receivables
44.0

 
51.9

Supplemental executive retirement plan assets
39.2

 
37.7

Warranty and other claim receivables
30.6

 
30.6

Deferred tax assets
29.3

 
25.2

Other
13.5

 
14.2

 
$
356.5

 
$
352.7



Accrued liabilities and other consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Personnel costs
$
176.7

 
$
242.0

Deferred revenue
156.1

 
169.8

Taxes
93.8

 
84.2

Accrued interest
34.3

 
68.0

Advance payment received on sale of assets
3.3

 
33.0

Customer pre-payments

 
20.0

Other
29.3

 
41.7

 
$
493.5

 
$
658.7


    
Other liabilities consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Deferred revenue
$
244.7

 
$
217.6

Unrecognized tax benefits (inclusive of interest and penalties)
156.6

 
148.0

Intangible liabilities
62.2

 
69.1

Supplemental executive retirement plan liabilities
41.9

 
40.5

Personnel costs
30.5

 
37.2

Other
33.2

 
33.3

 
$
569.1

 
$
545.7


 
Accumulated other comprehensive income consisted of the following (in millions):
 
March 31,
2014
 
December 31,
2013
Derivative Instruments
$
26.0

 
$
20.6

Other
(2.4
)
 
(2.4
)
 
$
23.6

 
$
18.2



Concentration of Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents, our short-term 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 cash equivalents by focusing on diversification and quality of instruments. Cash equivalents consist of a portfolio of high-grade instruments. Custody of cash and cash equivalents 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 International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements, which include provisions for a legally enforceable master netting agreement, with almost all of our derivative counterparties. The terms of the ISDA agreements may also include credit support requirements, cross default provisions, termination events or set-off provisions.  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 quarter ended March 31, 2014, Total, Petrobras and Anadarko Petroleum accounted for 15%, 10% and 10% of our consolidated revenues, respectively, all of which were attributable to our Floaters segment. During the same period, BP accounted for 16% of our consolidated revenues, 80% of which were attributable to our Floaters segment.

During the quarter ended March 31, 2014, revenues provided by our drilling operations in the U.S. Gulf of Mexico totaled $419.9 million, or 37%, of our consolidated revenues, of which 75% were provided by our Floaters segment. Revenues provided by our drilling operations in Angola and Brazil during the quarter ended March 31, 2014 totaled $189.3 million and $134.4 million, or 17% and 12%, respectively, of our consolidated revenues, all of which were provided by our Floaters segment.
Guarantee Of Registered Securities
Guarantee Of Registered Securities
Guarantee of Registered Securities

On May 31, 2011, Ensco plc completed a merger transaction (the "Merger") with Pride International Inc. ("Pride"). 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% unsecured senior notes due 2019, 6.875% unsecured senior notes due 2020 and 7.875% unsecured senior notes due 2040, which had an aggregate outstanding principal balance of $1.7 billion as of March 31, 2014. The Ensco plc guarantee provides for the unconditional and irrevocable guarantee of the prompt payment, when due, of any amount owed to the holders of the notes.
 
Ensco plc is also a full and unconditional guarantor of the 7.2% debentures due 2027 issued by ENSCO International Incorporated during 1997, which had an aggregate outstanding principal balance of $150.0 million as of March 31, 2014.
    
All guarantees are unsecured obligations of Ensco plc ranking equal in right of payment with all of its existing and future unsecured and unsubordinated indebtedness.
   
The following tables present the unaudited condensed consolidating statements of income for the three month periods ended March 31, 2014 and 2013; the unaudited condensed consolidating statements of comprehensive income for the three month periods ended March 31, 2014 and 2013; the condensed consolidating balance sheets as of March 31, 2014 (unaudited) and December 31, 2013; and the unaudited condensed consolidating statements of cash flows for the three month periods ended March 31, 2014 and 2013, in accordance with Rule 3-10 of Regulation S-X.

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Three Months Ended March 31, 2014
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING REVENUES
$
7.7

 
$
38.9

 
$

 
$
1,162.8

 
$
(79.5
)
 
$
1,129.9

OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Contract drilling (exclusive of depreciation)
7.3

 
38.9

 

 
585.9

 
(79.5
)
 
552.6

Depreciation
.1

 
1.5

 

 
137.6

 

 
139.2

General and administrative
16.3

 
.1

 

 
21.7

 

 
38.1

OPERATING (LOSS) INCOME
(16.0
)
 
(1.6
)



417.6




400.0

OTHER (EXPENSE) INCOME, NET
(16.6
)
 
(4.0
)
 
(12.2
)
 
3.7

 

 
(29.1
)
(LOSS) INCOME BEFORE INCOME TAXES
(32.6
)
 
(5.6
)

(12.2
)

421.3




370.9

INCOME TAX PROVISION

 
30.8

 

 
22.1

 

 
52.9

DISCONTINUED OPERATIONS, NET

 

 

 
(21.3
)
 

 
(21.3
)
EQUITY EARNINGS (LOSS) IN AFFILIATES, NET OF TAX
325.1

 
94.0

 
(15.3
)
 

 
(403.8
)
 

NET INCOME
292.5


57.6


(27.5
)

377.9


(403.8
)

296.7

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(4.2
)
 

 
(4.2
)
NET INCOME (LOSS) ATTRIBUTABLE TO ENSCO
$
292.5

 
$
57.6


$
(27.5
)

$
373.7


$
(403.8
)

$
292.5

ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
Three Months Ended March 31, 2013
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
OPERATING REVENUES
$
5.5

 
$
38.1

 
$

 
$
1,074.1

 
$
(77.4
)
 
$
1,040.3

OPERATING EXPENSES
 

 
 

 
 

 
 

 
 

 


Contract drilling (exclusive of depreciation)
12.4

 
38.1

 

 
506.7

 
(77.4
)
 
479.8

Depreciation
.1

 
.8

 

 
127.0

 

 
127.9

General and administrative
16.9

 
.2

 

 
20.7

 

 
37.8

OPERATING (LOSS) INCOME
(23.9
)

(1.0
)



419.7




394.8

OTHER (EXPENSE) INCOME, NET
(14.6
)
 
(7.4
)
 
(14.6
)
 
6.8

 

 
(29.8
)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(38.5
)

(8.4
)

(14.6
)

426.5




365.0

INCOME TAX PROVISION

 
29.5

 

 
21.3

 

 
50.8

DISCONTINUED OPERATIONS, NET

 

 

 
5.7

 

 
5.7

EQUITY EARNINGS IN AFFILIATES, NET OF TAX
355.6

 
111.7

 
52.4

 

 
(519.7
)
 

NET INCOME
317.1

 
73.8


37.8


410.9


(519.7
)

319.9

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(2.8
)
 

 
(2.8
)
NET INCOME ATTRIBUTABLE TO ENSCO
$
317.1


$
73.8


$
37.8


$
408.1


$
(519.7
)

$
317.1




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2014
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
$
292.5

 
$
57.6

 
$
(27.5
)
 
$
377.9

 
$
(403.8
)
 
$
296.7

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

 
4.9

 

 

 

 
4.9

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

 
.5

 

 

 

 
.5

NET OTHER COMPREHENSIVE INCOME

 
5.4








5.4

 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME (LOSS)
292.5

 
63.0


(27.5
)

377.9


(403.8
)

302.1

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(4.2
)
 

 
(4.2
)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ENSCO
$
292.5

 
$
63.0


$
(27.5
)

$
373.7


$
(403.8
)

$
297.9


ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2013
(in millions)
(Unaudited)

 
Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
317.1

 
$
73.8

 
$
37.8

 
$
410.9

 
$
(519.7
)
 
$
319.9

OTHER COMPREHENSIVE LOSS, NET
 
 
 
 
 
 
 
 
 
 

Net change in fair value of derivatives

 
(4.0
)
 

 

 

 
(4.0
)
Reclassification of net gains on derivative instruments from other comprehensive income into net income

 
(1.0
)
 

 

 

 
(1.0
)
Other

 

 

 
(.1
)
 

 
(.1
)
NET OTHER COMPREHENSIVE LOSS


(5.0
)



(.1
)


 
(5.1
)
 
 
 
 
 
 
 
 
 
 
 


COMPREHENSIVE INCOME
317.1


68.8


37.8


410.8


(519.7
)
 
314.8

COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 
(2.8
)
 

 
(2.8
)
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSCO
$
317.1


$
68.8


$
37.8


$
408.0


$
(519.7
)

$
312.0




ENSCO PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
March 31, 2014
(in millions)
(Unaudited)

 
 Ensco plc
 
ENSCO International Incorporated
 
Pride International, Inc.
 
Other Non-Guarantor Subsidiaries of Ensco
 
Consolidating Adjustments
 
Total
                          ASSETS 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
38.1

 
$

 
$
2.2

 
$
82.2

 
$

 
$
122.5

Accounts receivable, net 

 

 

 
779.6

 

 
779.6

Accounts receivable from affiliates
2,119.5

 
158.2

 
1.3

 
4,460.7

 
(6,739.7
)
 

Other
3.0

 
66.3

 

 
501.0

 

 
570.3

Total current assets
2,160.6

 
224.5


3.5


5,823.5


(6,739.7
)

1,472.4

PROPERTY AND EQUIPMENT, AT COST
2.1

 
48.2

 

 
17,650.4

 

 
17,700.7

Less accumulated depreciation
1.6

 
28.0

 

 
3,252.8

 

 
3,282.4

Property and equipment, net  
.5

 
20.2




14,397.6




14,418.3

GOODWILL

 

 

 
3,274.0

 

 
3,274.0

DUE FROM AFFILIATES
4,129.1

 
4,380.3

 
1,933.6

 
5,283.2

 
(15,726.2
)
 

INVESTMENTS IN AFFILIATES
14,174.1

 
4,973.8

 
4,076.9

 

 
(23,224.8
)
 

OTHER ASSETS, NET 
8.2

 
57.9

 

 
290.4

 

 
356.5

 
$
20,472.5

 
$
9,656.7


$
6,014.0


$
29,068.7


$
(45,690.7
)

$
19,521.2

LIABILITIES AND SHAREHOLDERS' EQUITY 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
5.2

 
$
17.4

 
$
23.4

 
$
859.4

 
$

 
$
905.4

Accounts payable to affiliates
4,036.0

 
471.4

 

 
2,232.3

 
(6,739.7
)
 

Current maturities of long-term debt

 

 

 
47.5

 

 
47.5

Total current liabilities
4,041.2

 
488.8


23.4


3,139.2


(6,739.7
)

952.9

DUE TO AFFILIATES 
1,025.7

 
2,951.5

 
1,391.9

 
10,357.1

 
(15,726.2
)
 

LONG-TERM DEBT 
2,474.8

 
149.1

 
1,999.3

 
80.5

 

 
4,703.7

DEFERRED INCOME TAXES

 
360.2

 

 
4.5

 

 
364.7

OTHER LIABILITIES

 
2.0

 
8.1

 
559.0

 

 
569.1

ENSCO SHAREHOLDERS' EQUITY 
12,930.8

 
5,705.1

 
2,591.3

 
14,919.2

 
(23,224.8
)
 
12,921.6

NONCONTROLLING INTERESTS

 

 

 
9.2

 

 
9.2

Total equity
12,930.8

 
5,705.1


2,591.3


14,928.4


(23,224.8
)

12,930.8

      
$
20,472.5

 
$
9,656.7


$
6,014.0


$
29,068.7


$
(45,690.7
)

$
19,521.2





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
)