QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(Registered Number 08354954) | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) | |
Name of Company | Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||
Noble Corporation plc | NEBLQ* | * | ||||
Noble Corporation | None | — | — | |||
Noble Corporation plc: | Large accelerated filer | ☐ | ☑ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||
Noble Corporation: | Large accelerated filer | ☐ | Accelerated filer | ☐ | ☑ | Smaller reporting company | Emerging growth company | |||
Page | ||||
PART I | ||||
Item 1 | ||||
Noble Corporation plc (Noble-UK) Financial Statements: | ||||
Noble Corporation (Noble-Cayman) Financial Statements: | ||||
Item 2 | ||||
Item 3 | ||||
Item 4 | ||||
PART II | ||||
Item 1 | ||||
Item 1A | ||||
Item 2 | ||||
Item 3 | ||||
Item 6 | ||||
June 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable, net of allowance for credit losses of $3,069 and $1,939, respectively | ||||||||
Taxes receivable | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property and equipment, at cost | ||||||||
Accumulated depreciation | ( | ) | ( | ) | ||||
Property and equipment, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | $ | ||||||
Accounts payable | ||||||||
Accrued payroll and related costs | ||||||||
Taxes payable | ||||||||
Interest payable | ||||||||
Other current liabilities | ||||||||
Total current liabilities | ||||||||
Long-term debt | ||||||||
Deferred income taxes | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Note 13) | ||||||||
Shareholders’ equity | ||||||||
Common stock, $0.01 par value, ordinary shares; 251,041 and 249,200 shares outstanding as of June 30, 2020 and December 31, 2019, respectively | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total shareholders’ equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating revenues | ||||||||||||||||
Contract drilling services | $ | $ | $ | $ | ||||||||||||
Reimbursables and other | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Contract drilling services | ||||||||||||||||
Reimbursables | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
General and administrative | ||||||||||||||||
Pre-petition charges | ||||||||||||||||
Loss on impairment | ||||||||||||||||
Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net of amounts capitalized | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Gain (loss) on extinguishment of debt, net | ( | ) | ( | ) | ||||||||||||
Interest income and other, net | ||||||||||||||||
Loss from continuing operations before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax benefit | ||||||||||||||||
Net loss from continuing operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net loss attributable to Noble Corporation plc | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net loss from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Per share data | ||||||||||||||||
Basic: | ||||||||||||||||
Loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Loss from discontinued operations | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Diluted: | ||||||||||||||||
Loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Loss from discontinued operations | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ||||||||||
Amortization of deferred pension plan amounts (net of tax provision of $150 and $146 for the three months ended June 30, 2020 and 2019, respectively, and $300 and $291 for the six months ended June 30, 2020 and 2019, respectively.) | ||||||||||||||||
Other comprehensive income (loss), net | ( | ) | ||||||||||||||
Net comprehensive income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||||||
Depreciation and amortization | ||||||||
Loss on impairment | ||||||||
(Gain) loss on extinguishment of debt, net | ( | ) | ||||||
Deferred income taxes | ( | ) | ( | ) | ||||
Amortization of share-based compensation | ||||||||
Other costs, net | ( | ) | ||||||
Changes in components of working capital: | ||||||||
Change in taxes receivable | ( | ) | ||||||
Net changes in other operating assets and liabilities | ( | ) | ||||||
Net cash provided by (used in) operating activities | ( | ) | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Proceeds from disposal of assets, net | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings on credit facilities | ||||||||
Repayments of credit facilities | ( | ) | ||||||
Repayments of debt | ( | ) | ( | ) | ||||
Debt issuance costs | ( | ) | ||||||
Dividends paid to noncontrolling interests | ( | ) | ||||||
Cash paid to settle equity awards | ( | ) | ||||||
Taxes withheld on employee stock transactions | ( | ) | ( | ) | ||||
Net cash provided by (used in) financing activities | ( | ) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | ||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | ||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||
Balance | Par Value | ||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Employee related equity activity | |||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Issuance of share-based compensation shares | ( | ) | — | — | — | ||||||||||||||||||||||
Shares withheld for taxes on equity transactions | — | — | — | — | — | ||||||||||||||||||||||
Net loss | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | — | $ | ||||||||||||||||||
Employee related equity activity | |||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Issuance of share-based compensation shares | — | — | — | — | |||||||||||||||||||||||
Shares withheld for taxes on equity transactions | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net loss | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | — | $ | ||||||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||
Balance | Par Value | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Employee related equity activity | |||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Issuance of share-based compensation shares | ( | ) | — | — | — | ||||||||||||||||||||||
Shares withheld for taxes on equity transactions | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net loss | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Employee related equity activity | |||||||||||||||||||||||||||
Amortization of share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Issuance of share-based compensation shares | ( | ) | — | — | — | ||||||||||||||||||||||
Shares withheld for taxes on equity transactions | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||
Net loss | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable, net of allowance for credit losses of $3,069 and $1,939, respectively | ||||||||
Taxes receivable | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property and equipment, at cost | ||||||||
Accumulated depreciation | ( | ) | ( | ) | ||||
Property and equipment, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | $ | ||||||
Accounts payable | ||||||||
Accrued payroll and related costs | ||||||||
Taxes payable | ||||||||
Interest payable | ||||||||
Other current liabilities | ||||||||
Total current liabilities | ||||||||
Long-term debt | ||||||||
Deferred income taxes | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Note 13) | ||||||||
Shareholders’ equity | ||||||||
Common stock, $0.10 par value, ordinary shares; 261,246 shares outstanding as of June 30, 2020 and December 31, 2019 | ||||||||
Capital in excess of par value | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total shareholders’ equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating revenues | ||||||||||||||||
Contract drilling services | $ | $ | $ | $ | ||||||||||||
Reimbursables and other | ||||||||||||||||
Operating costs and expenses | ||||||||||||||||
Contract drilling services | ||||||||||||||||
Reimbursables | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
General and administrative | ||||||||||||||||
Loss on impairment | ||||||||||||||||
Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net of amounts capitalized | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Gain (loss) on extinguishment of debt, net | ( | ) | ( | ) | ||||||||||||
Interest income and other, net | ||||||||||||||||
Loss from continuing operations before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax provision | ||||||||||||||||
Net income (loss) from continuing operations | ( | ) | ( | ) | ( | ) | ||||||||||
Net income (loss) from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
Net income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Net income (loss) attributable to Noble Corporation | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive income (loss) | ||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ||||||||||
Amortization of deferred pension plan amounts (net of tax provision of $150 and $146 for the three months ended June 30, 2020 and 2019, respectively, and $300 and $291 for the six months ended June 30, 2020 and 2019, respectively.) | ||||||||||||||||
Other comprehensive income (loss), net | ( | ) | ||||||||||||||
Net comprehensive income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) attributable to Noble Corporation | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||||||
Depreciation and amortization | ||||||||
Loss on impairment | ||||||||
(Gain) loss on extinguishment of debt, net | ( | ) | ||||||
Deferred income taxes | ( | ) | ( | ) | ||||
Amortization of share-based compensation | ||||||||
Other costs, net | ( | ) | ( | ) | ||||
Changes in components of working capital: | ||||||||
Change in taxes receivable | ( | ) | ||||||
Net changes in other operating assets and liabilities | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Proceeds from disposal of assets, net | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings on credit facilities | ||||||||
Repayments of credit facilities | ( | ) | ||||||
Repayments of debt | ( | ) | ( | ) | ||||
Debt issuance costs | ( | ) | ||||||
Dividends paid to noncontrolling interests | ( | ) | ||||||
Distributions to parent company, net | ( | ) | ( | ) | ||||
Net cash provided by (used in) financing activities | ( | ) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | ||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | ||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||
Balance | Par Value | ||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Distributions to parent company, net | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Capital contribution by parent - share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Net income (loss) | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | — | $ | ||||||||||||||||||
Distributions to parent company, net | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Capital contribution by parent - share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | — | $ | ||||||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||
Balance | Par Value | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Distributions to parent company, net | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Capital contribution by parent - share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Net income (loss) | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | ||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Distributions to parent company, net | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Capital contribution by parent - share-based compensation | — | — | — | — | — | ||||||||||||||||||||||
Net loss | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | ||||||||||||||||
Basic | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net loss from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Diluted | ||||||||||||||||
Net loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net loss from discontinued operations, net of tax | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding - basic | ||||||||||||||||
Weighted average shares outstanding - diluted | ||||||||||||||||
Loss per share | ||||||||||||||||
Basic: | ||||||||||||||||
Loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Loss from discontinued operations | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Diluted: | ||||||||||||||||
Loss from continuing operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Loss from discontinued operations | ( | ) | ||||||||||||||
Net loss attributable to Noble Corporation plc | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
June 30, 2020 | December 31, 2019 | |||||||
Drilling equipment and facilities | $ | $ | ||||||
Construction in progress | ||||||||
Other | ||||||||
Property and equipment, at cost | $ | $ | ||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Senior unsecured notes: | ||||||||||||||||
4.90% Senior Notes due August 2020 | $ | $ | $ | $ | ||||||||||||
4.625% Senior Notes due March 2021 | ||||||||||||||||
3.95% Senior Notes due March 2022 | ||||||||||||||||
7.75% Senior Notes due January 2024 | ||||||||||||||||
7.95% Senior Notes due April 2025 | ||||||||||||||||
7.875% Senior Notes due February 2026 | ||||||||||||||||
6.20% Senior Notes due August 2040 | ||||||||||||||||
6.05% Senior Notes due March 2041 | ||||||||||||||||
5.25% Senior Notes due March 2042 | ||||||||||||||||
8.95% Senior Notes due April 2045 | ||||||||||||||||
Seller loans: | ||||||||||||||||
Seller-financed secured loan due September 2022 | ||||||||||||||||
Seller-financed secured loan due February 2023 | ||||||||||||||||
Credit facility: | ||||||||||||||||
2017 Credit Facility matures January 2023 | ||||||||||||||||
Total debt | ||||||||||||||||
Less: Current maturities of long-term debt | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Long-term debt | $ | $ | $ | $ | ||||||||||||
Defined Benefit Pension Items (1) | Foreign Currency Items | Total | ||||||||||
Balance at December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Activity during period: | ||||||||||||
Other comprehensive income (loss) before reclassifications | ||||||||||||
Amounts reclassified from AOCI | ||||||||||||
Net other comprehensive income | ||||||||||||
Balance at March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Activity during period: | ||||||||||||
Other comprehensive income (loss) before reclassifications | $ | $ | ( | ) | ( | ) | ||||||
Amounts reclassified from AOCI | $ | $ | ||||||||||
Net other comprehensive income (loss) | ( | ) | ||||||||||
Balance at June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Balance at December 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Activity during period: | ||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ||||||||
Amounts reclassified from AOCI | ||||||||||||
Net other comprehensive income (loss) | ( | ) | ( | ) | ||||||||
Balance at March 31, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Activity during period: | ||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ||||||||
Amounts reclassified from AOCI | ||||||||||||
Net other comprehensive income (loss) | ( | ) | ||||||||||
Balance at June 30, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
(1) | Defined benefit pension items relate to actuarial changes and the amortization of prior service costs. Reclassifications from AOCI are recognized as expense on our Condensed Consolidated Statements of Operations through “Other income (expense).” See “Note 11— Employee Benefit Plans” for additional information. |
June 30, 2020 | December 31, 2019 | |||||||
Current contract assets | $ | $ | ||||||
Noncurrent contract assets | ||||||||
Total contract assets | ||||||||
Current contract liabilities (deferred revenue) | ( | ) | ( | ) | ||||
Noncurrent contract liabilities (deferred revenue) | ( | ) | ( | ) | ||||
Total contract liabilities | $ | ( | ) | $ | ( | ) | ||
Contract Assets | Contract Liabilities | |||||||
Net balance at December 31, 2018 | $ | $ | ( | ) | ||||
Amortization of deferred costs | ( | ) | — | |||||
Additions to deferred costs | — | |||||||
Amortization of deferred revenue | — | |||||||
Additions to deferred revenue | — | ( | ) | |||||
Total | ( | ) | ||||||
Net balance at June 30, 2019 | $ | $ | ( | ) | ||||
Net balance at December 31, 2019 | $ | $ | ( | ) | ||||
Amortization of deferred costs | ( | ) | — | |||||
Additions to deferred costs | — | |||||||
Amortization of deferred revenue | — | |||||||
Additions to deferred revenue | — | ( | ) | |||||
Total | ( | ) | ||||||
Net balance at June 30, 2020 | $ | $ | ( | ) | ||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2020 (1) | 2021 | 2022 | 2023 | 2024 and beyond | Total | |||||||||||||||||||
Floaters | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Jackups | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Floaters | $ | $ | $ | $ | ||||||||||||
Jackups | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Non-US | US | Non-US | US | |||||||||||||
Interest cost | $ | $ | $ | $ | ||||||||||||
Return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Recognized net actuarial loss | ||||||||||||||||
Net pension benefit cost (gain) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Non-US | US | Non-US | US | |||||||||||||
Interest cost | $ | $ | $ | $ | ||||||||||||
Return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Recognized net actuarial loss | ||||||||||||||||
Net pension benefit cost (gain) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
June 30, 2020 | ||||||||||||||||
Estimated Fair Value Measurements | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets - | ||||||||||||||||
Marketable securities | $ | $ | $ | $ | ||||||||||||
December 31, 2019 | ||||||||||||||||
Estimated Fair Value Measurements | ||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets - | ||||||||||||||||
Marketable securities | $ | $ | $ | $ | ||||||||||||
Noble-UK | Noble-Cayman | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Accounts receivable | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Other current assets | ||||||||||||||||
Other assets | ||||||||||||||||
Accounts payable | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total net change in assets and liabilities | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Year Ending December 31, | ||||||||||||||||||||||||
Total | 2020 (1) | 2021 | 2022 | 2023 | 2024 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Contract Drilling Services Backlog | ||||||||||||||||||||||||
Floaters (2)(3) | $ | 939,595 | $ | 214,082 | $ | 363,524 | $ | 218,423 | $ | 133,724 | $ | 9,842 | ||||||||||||
Jackups (4) | 419,154 | 133,100 | 157,934 | 96,956 | 31,164 | — | ||||||||||||||||||
Total (5) | $ | 1,358,749 | $ | 347,182 | $ | 521,458 | $ | 315,379 | $ | 164,888 | $ | 9,842 | ||||||||||||
Percent of Available Days Committed (6) | ||||||||||||||||||||||||
Floaters | 48 | % | 38 | % | 21 | % | 14 | % | 1 | % | ||||||||||||||
Jackups | 51 | % | 33 | % | 19 | % | 4 | % | — | % | ||||||||||||||
Total | 50 | % | 35 | % | 20 | % | 9 | % | 1 | % | ||||||||||||||
(1) | Represents a six-month period beginning July 1, 2020. |
(2) | Two of our long-term drilling contracts with Shell, the Noble Globetrotter I and Noble Globetrotter II, contain a dayrate adjustment mechanism that utilizes an average of market rates that match a set of distinct technical attributes and is subject to a modest discount, beginning on the fifth-year anniversary of the contract and continuing every six months thereafter. On December 12, 2016, we amended those drilling contracts with Shell. As a result of the amendments, each of the contracts now has a contractual dayrate floor. The contract amendments for the Noble Globetrotter I and Noble Globetrotter II provide a dayrate floor of $275,000 per day. Once the dayrate adjustment mechanism becomes effective and following any idle periods, the dayrate for these rigs will not be lower than the higher of (i) the contractual dayrate floor or (ii) the market rate as calculated under the adjustment mechanism. The impact to contract backlog from these amendments has been reflected in the table above and the backlog calculation assumes that, after any idle period at the contractual stacking rate, each rig will work at its respective dayrate floor for the remaining contract term. |
(3) | Noble entered into a multi-year Commercial Enabling Agreement (the “CEA”) with Exxon Mobil Corporation (“ExxonMobil”) in February 2020. Concurrent with signing the CEA, ExxonMobil awarded three and a half years of term to be added at the conclusion of the Noble Tom Madden’s current contract commitment (three years) and the Noble Bob Douglas’s current contract commitment (six months). In addition, a one-year primary term contract was awarded to the Noble Tom Madden’s current contract commitment. Under the CEA, dayrates earned by each rig will be updated at least twice per year to the prevailing market rate, subject to a scale-based discount and a performance bonus that appropriately aligns the interests of Noble and ExxonMobil. The aforementioned additional backlog was estimated using an illustrative dayrate of $185,000 discounted 5%, resulting in an effective rate of $175,750. |
(4) | In April 2020, we received notice from Saudi Arabian Oil Company (“Saudi Aramco”) to suspend operations on the Noble Scott Marks for a period of up to 12 months. Beginning in early May 2020, we idled the Noble Scott Marks at a rate of $0 per day. The impact to contract backlog has been reflected in the table above and the backlog calculation assumes that, upon completion of the suspension period, the rig will resume operations at the contracted dayrate for the remaining contract term. |
(5) | Some of our drilling contracts provide customers with certain early termination rights and, in limited cases, those termination rights require minimal or no notice and minimal financial penalties. |
(6) | Percent of available days committed is calculated by dividing the total number of days our rigs are operating under contract for such period by the product of the number of our rigs and the number of calendar days in such period. |
Average Rig Utilization (1) | Operating Days (2) | Average Dayrates (2) | ||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||
Jackups | 65 | % | 98 | % | 709 | 1,050 | (32 | )% | $ | 148,781 | $ | 124,572 | 19 | % | ||||||||||||
Floaters | 53 | % | 67 | % | 584 | 728 | (20 | )% | 196,489 | 197,911 | (1 | )% | ||||||||||||||
Total | 59 | % | 82 | % | 1,293 | 1,778 | (27 | )% | $ | 170,325 | $ | 154,609 | 10 | % | ||||||||||||
(1) | We define utilization for a specific period as the total number of days our rigs are operating under contract, divided by the product of the total number of our rigs, including cold stacked rigs, and the number of calendar days in such period. Information reflects our policy of reporting on the basis of the number of available rigs in our fleet, excluding newbuild rigs under construction. |
(2) | An operating day is defined as a calendar day during which a rig operated under a drilling contract. We define average dayrates as revenue from contract drilling services earned per operating day. |
Three Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | $ | % | ||||||||||||
Operating revenues: | |||||||||||||||
Contract drilling services | $ | 220,141 | $ | 274,817 | $ | (54,676 | ) | (20 | )% | ||||||
Reimbursables and other (1) | 17,777 | 18,119 | (342 | ) | (2 | )% | |||||||||
237,918 | 292,936 | (55,018 | ) | (19 | )% | ||||||||||
Operating costs and expenses: | |||||||||||||||
Contract drilling services | 144,154 | 168,865 | (24,711 | ) | (15 | )% | |||||||||
Reimbursables (1) | 16,334 | 15,381 | 953 | 6 | % | ||||||||||
Depreciation and amortization | 87,297 | 107,802 | (20,505 | ) | (19 | )% | |||||||||
General and administrative | 73,003 | 116,252 | (43,249 | ) | (37 | )% | |||||||||
320,788 | 408,300 | (87,512 | ) | (21 | )% | ||||||||||
Operating loss | $ | (82,870 | ) | $ | (115,364 | ) | $ | 32,494 | (28 | )% | |||||
(1) | We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows. |
Average Rig Utilization (1) | Operating Days (2) | Average Dayrates (2) | ||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||
Jackups | 80 | % | 96 | % | 1,791 | 1,972 | (9 | )% | $ | 138,190 | $ | 125,777 | 10 | % | ||||||||||||
Floaters | 56 | % | 63 | % | 1,221 | 1,375 | (11 | )% | 196,630 | 216,170 | (9 | )% | ||||||||||||||
Total | 68 | % | 79 | % | 3,012 | 3,347 | (10 | )% | $ | 161,877 | $ | 162,908 | (1 | )% | ||||||||||||
(1) | We define utilization for a specific period as the total number of days our rigs are operating under contract, divided by the product of the total number of our rigs, including cold stacked rigs, and the number of calendar days in such period. Information reflects our policy of reporting on the basis of the number of available rigs in our fleet, excluding newbuild rigs under construction. |
(2) | An operating day is defined as a calendar day during which a rig operated under a drilling contract. We define average dayrates as revenue from contract drilling services earned per operating day. |
Six Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | $ | % | ||||||||||||
Operating revenues: | |||||||||||||||
Contract drilling services | $ | 487,505 | $ | 545,318 | $ | (57,813 | ) | (11 | )% | ||||||
Reimbursables and other (1) | 31,724 | 30,506 | 1,218 | 4 | % | ||||||||||
519,229 | 575,824 | (56,595 | ) | (10 | )% | ||||||||||
Operating costs and expenses: | |||||||||||||||
Contract drilling services | 305,299 | 340,593 | (35,294 | ) | (10 | )% | |||||||||
Reimbursables (1) | 28,018 | 24,776 | 3,242 | 13 | % | ||||||||||
Depreciation and amortization | 188,405 | 213,888 | (25,483 | ) | (12 | )% | |||||||||
General and administrative | 90,842 | 132,251 | (41,409 | ) | (31 | )% | |||||||||
Loss on impairments | 1,119,517 | — | 1,119,517 | ** | |||||||||||
1,732,081 | 711,508 | 1,020,573 | 143 | % | |||||||||||
Operating loss | $ | (1,212,852 | ) | $ | (135,684 | ) | $ | (1,077,168 | ) | 794 | % | ||||
(1) | We record reimbursements from customers for out-of-pocket expenses as operating revenues and the related direct costs as operating expenses. Changes in the amount of these reimbursables generally do not have a material effect on our financial position, results of operations or cash flows. |
• | normal recurring operating expenses; and |
• | capital expenditures. |
• | normal recurring operating expenses; |
• | planned and discretionary capital expenditures; and |
• | repayments of debt and interest. |
• | $29.4 million for sustaining capital; |
• | $10.5 million in major projects, including subsea and other related projects; and |
• | $25.5 million for rebillable capital and contract modifications. |
• | our ability to successfully develop, prosecute, confirm and consummate a plan of reorganization with respect to the Chapter 11 Cases; |
• | our ability to obtain the Bankruptcy Court’s approval with respect to motions or other requests made to the Bankruptcy Court in the Chapter 11 Cases, including maintaining strategic control as debtors-in-possession; |
• | the possibility that actions and decisions of our creditors and other third parties with interests in the Chapter 11 Cases may be inconsistent with our plans; |
• | the high costs of bankruptcy proceedings and related fees; |
• | our ability to obtain acceptable and sufficient financing to allow us to emerge from bankruptcy and execute our business plan post-emergence, and our ability to comply with terms and conditions of that financing; |
• | our ability to maintain contracts that are critical to our operations on reasonably acceptable terms and conditions; |
• | the ability of third parties to seek and obtain court approval to terminate contracts and other agreements with us; and |
• | the possibility that the Chapter 11 Cases will disrupt or impede our operations. |
• | sell assets outside the ordinary course of business; |
• | consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; |
• | grant liens; and |
• | finance our operations, investments or other capital needs or to engage in other business activities that would be in our interest. |
• | our ability to change substantially our capital structure; |
• | our ability to obtain adequate liquidity and access financing sources; |
• | our ability to maintain customers’ confidence in our viability as a continuing entity and to attract and retain sufficient business from them; |
• | our ability to retain key employees; and |
• | the overall strength and stability of general economic conditions and the financial and oil and gas industries, both in the U.S. and in global markets. |
Exhibit Number | Exhibit | |
2.1 | ||
2.2 | ||
2.3 | ||
3.1 | ||
3.2 | ||
10.1* | ||
10.2* | ||
10.3* | ||
10.4* | ||
22 | ||
31.1 | ||
31.2 | ||
31.3 | ||
31.4 | ||
32.1+ | ||
Exhibit Number | Exhibit | |
32.2+ | ||
32.3+ | ||
32.4+ | ||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |
* | Management contract or compensatory plan or arrangement. |
+ | Furnished in accordance with Item 601(b)(32)(ii) of Regulation S-K. |
/s/ Richard B. Barker | August 7, 2020 | |
Richard B. Barker Senior Vice President and Chief Financial Officer (Principal Financial Officer) | Date | |
/s/ Laura D. Campbell | August 7, 2020 | |
Laura D. Campbell Vice President and Controller (Principal Accounting Officer) | Date | |
/s/ Richard B. Barker | August 7, 2020 | |
Richard B. Barker Director, Senior Vice President and Chief Financial Officer (Principal Financial Officer) | Date | |
/s/ Laura D. Campbell | August 7, 2020 | |
Laura D. Campbell Vice President and Controller (Principal Accounting Officer) | Date | |
• | The participants whose participation hereunder shall also be subject to the terms and conditions of a letter agreement (“Letter Agreement”) that shall be entered into by and between the participant and the Company as part of the Compensation Restructuring, such participants comprising certain members of management of the Company (the “Clawback Participants”); and |
• | The participants whose participation hereunder shall not be subject to any Letter Agreement (the “Other Participants”). |
• | With respect to each of the Clawback Participants (and subject to such participant entering into a Letter Agreement), the applicable Up-Front Payment in the amount set forth in such participant’s Letter Agreement, of which 50% of such Up-Front Payment shall be subject to the service-based and performance-based clawback restrictions, as applicable and as set forth herein (“Clawback Restrictions”), and pursuant to such Clawback Restrictions, the Outstanding Cash Amount (as defined below) shall not be deemed to be vested, unless and until such time that the Clawback Restrictions shall lapse as set forth below; and |
• | With respect to each of the Other Participants, the Up-Front Payment shall be an amount that is approximately 50% of such participant’s target bonus amount under the Original STIP, which is intended to represent payment in respect of Q1 and Q2 of 2020, it being understood that the Clawback Restrictions set forth below shall not apply to the Other Participants. |
• | Subject to all applicable Clawback Restrictions set forth herein, the portion of the Partial Cash Amount that shall vest, if at all, and for which the corresponding Clawback Restrictions shall lapse, shall be based on the applicable “Final Performance Percentage” (as further described in Annex II) that the Committee determines and certifies, confirms or approves as being achieved under the “Performance Measures” as further described in the attached Exhibit 1. |
• | If at least a “Threshold” performance level (as described in Annex I to Exhibit 1) is achieved during the Performance Cycle (“Qualifying Performance”), then, subject to all applicable Clawback Restrictions set forth herein, some portion of the Partial Cash Amount determined under the attached Exhibit 1 (“Certified Cash Amount”) shall be eligible to vest and the corresponding Clawback Restrictions shall lapse with respect to such portion, in each case as determined pursuant to Annex I and Annex II to Exhibit 1. For the avoidance of doubt, if Qualifying Performance is not achieved with respect to any of the Performance Cycles, then no portion of the Partial Cash Amount shall vest with respect to the Performance Cycles and the Clawback Participant shall be obligated to repay the entire Partial Cash Amount to Noble (i.e., the Clawback Restrictions shall apply to the entire Partial Cash Amount). |
• | If Qualifying Performance is achieved with respect to a Performance Cycle as determined pursuant to Annex I to Exhibit 1, but the “Final Performance Percentage” as further described in Annex II to Exhibit 1 is less than 100%, then, subject to all applicable Clawback Restrictions set forth herein, (i) less than 100% of the Partial Cash Amount related to the Performance Cycle shall vest, (ii) the Clawback Restrictions shall lapse with respect to such vested portion of the Partial Cash Amount, (iii) the Clawback Restrictions shall apply to the remainder of the Partial Cash Amount that does not vest and (iv) the Clawback Participant shall be obligated to repay the applicable portion of the Partial Cash Amount that does not vest to Noble (i.e., based on the extent to which such Partial Cash Amount exceeds the portion thereof that vests as the Certified Cash Amount). |
• | Any repayment required pursuant to the foregoing “Performance-Based Clawback Restrictions” shall be paid by the Clawback Participant to Noble within fifteen days after receipt by the Clawback Participant of the associated repayment instructions relating to the Determination Date for the final Performance Cycle, it being understood that repayment instructions will be provided to the Clawback Participant promptly following the occurrence of such Determination Date. |
• | EBITDA Measure - Financial |
EBITDA Measure (50% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
STIP Multiple | 0.50 | 1.00 | 2.00 |
Q3 2020 Goal | [***] | [***] | [***] |
Q4 2020 Goal | [***] | [***] | [***] |
• | Unpaid Downtime Measure - Operational |
Downtime Measure (25% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
STIP Multiple | 0.50 | 1.00 | 2.00 |
Q3 / Q4 2020 Goal | 3.50% | 2.75% | 2.00% |
• | Safety Measure - Other |
Safety Measure (25% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
STIP Multiple | 0.50 | 1.00 | 2.00 |
Q3 / Q4 2020 Goal TRIR Rate | 0.65 | 0.50 | 0.35 |
Incremental Performance Percentage Determination | |||
Weighting (A) | STIP Multiple (Interpolated) (B) | Performance Percentage (A × B) | |
EBITDA Measure | 50% | [Based on Actual Performance] | [Percentage Result 1] |
Unpaid Downtime Measure | 25% | [Based on Actual Performance] | [Percentage Result 2] |
Safety Measure | 25% | [Based on Actual Performance] | [Percentage Result 3] |
Totals: | 100% | N/A | Sum of Results 1 - 3 |
Blended Performance Percentage Determination | |||
Weighting (A) | STIP Multiple (Interpolated) (B) | Performance Percentage (A × B) | |
EBITDA Measure Q3 | 25% | [Based on Actual Performance] | [Percentage Result 1] |
Unpaid Downtime Measure Q3 | 12.5% | [Based on Actual Performance] | [Percentage Result 2] |
Safety Measure Q3 | 12.5% | [Based on Actual Performance] | [Percentage Result 3] |
EBITDA Measure Q4 | 25% | [Based on Actual Performance] | [Percentage Result 4] |
Unpaid Downtime Measure Q4 | 12.5% | [Based on Actual Performance] | [Percentage Result 5] |
Safety Measure Q4 | 12.5% | [Based on Actual Performance] | [Percentage Result 6] |
Totals: | 100% | N/A | Sum of Results 1 - 6 |
• | Performance Component. The application or lapse of the performance-based Clawback Restrictions under the Performance Component (“Performance Award”) will primarily be a function of the Company’s performance on key metrics, which shall consist of the EBITDA Measure, the Unpaid Downtime Measure and the Safety Measure (each as defined in Annex I to Exhibit 1). See Exhibit 1 and Annex I and Annex II for details on the Company’s performance measures and goals for purposes of the OCAP. Generally, each goal is structured to include a Threshold, Target and Maximum level of achievement. |
• | Retention Component. The application or lapse of Clawback Restrictions under the Retention Component (“Retention Award”) will be based on the Clawback Participant’s continued service until the end of the Restricted Period. |
• | Subject to all applicable Clawback Restrictions set forth herein, the portion of any Outstanding Performance Amount that shall vest, if at all, and for which the corresponding Clawback Restrictions shall lapse, shall be based on the applicable “Final Performance Percentage” (as further described in Annex II) that the Committee determines and certifies, confirms or approves as being achieved under the “Performance Measures” as further described in the attached Exhibit 1. |
• | If at least a “Threshold” performance level (as described in Annex I to Exhibit 1) is achieved during the Performance Cycle (“Qualifying Performance”), then, subject to all applicable Clawback Restrictions set forth herein, some portion of the Outstanding Performance Amount determined under the attached Exhibit 1 (“Certified Cash Amount”) shall be eligible to vest and the corresponding Clawback Restrictions shall lapse with respect to such portion, in each case as determined pursuant to Annex I and Annex II to Exhibit 1. For the avoidance of doubt, if Qualifying Performance is not achieved with respect to both of the Performance Cycles, then no portion of the Outstanding Performance Amount shall vest with respect to the Performance Cycles and the Clawback Participant shall be obligated to repay the entire Outstanding Performance Amount to Noble (i.e., the Clawback Restrictions shall apply to the entire Outstanding Performance Amount). |
• | If Qualifying Performance is achieved with respect to a Performance Cycle as determined pursuant to Annex I to Exhibit 1, but the “Final Performance Percentage” as further described in Annex II to Exhibit 1 is less than 100%, then, subject to all applicable Clawback Restrictions set forth herein, (i) less than 100% of the Outstanding Performance Amount related to the Performance Cycle shall vest, (ii) the Clawback Restrictions shall lapse with respect to such vested portion of the Outstanding Performance Amount, (iii) the Clawback Restrictions shall apply to the remainder of the Outstanding Performance Amount that does not vest and (iv) the Clawback Participant shall be obligated to repay the applicable portion of the Outstanding Performance Amount that does not vest to Noble (i.e., based on the extent to which such Outstanding Performance Amount exceeds the portion thereof that vests as the Certified Cash Amount). |
• | Any repayment required pursuant to the foregoing “Performance-Based Clawback Restrictions” shall be paid by the Clawback Participant to Noble within fifteen days after receipt by the Clawback Participant of the associated repayment instructions relating to the Determination Date for the final Performance Cycle, it being understood that repayment instructions will be provided to the Clawback Participant promptly following the occurrence of such Determination Date. |
• | Performance Component If the Clawback Participant’s employment with the Company or an affiliate terminates during the Restricted Period due to a “Qualified Termination,” as such term is defined in the Letter Agreement, then, if applicable, a portion of the Outstanding Performance Amount may be forfeited (i.e., such forfeited portion shall not vest) and the Clawback Participant shall be obligated to repay such portion of the Outstanding Performance Amount to Noble (i.e., the Clawback Restrictions shall apply to such portion of the Outstanding Performance Amount) (the “Excluded Performance Amount”). The Excluded Performance Amount shall be determined by multiplying the Outstanding Performance Amount by a fraction, (i) the numerator of which is the number of calendar months remaining in 2020 that end after the date of the Clawback Participant’s Qualified Termination, and (ii) the denominator of which is 6 (the “Qualified Termination Fraction”). |
• | EBITDA Measure - Financial |
EBITDA Measure (50% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
OCAP Multiple | 0.50 | 1.00 | 2.00 |
Q3 2020 Goal | [***] | [***] | [***] |
Q4 2020 Goal | [***] | [***] | [***] |
• | Unpaid Downtime Measure - Operational |
Downtime Measure (25% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
OCAP Multiple | 0.50 | 1.00 | 2.00 |
Q3 / Q4 2020 Goal | 3.50% | 2.75% | 2.00% |
• | Safety Measure - Other |
Safety Measure (25% Weighting Separately for Q3 and Q4) | |||
Level of Achievement | Threshold | Target | Maximum |
OCAP Multiple | 0.50 | 1.00 | 2.00 |
Q3 / Q4 2020 Goal TRIR Rate | 0.65 | 0.50 | 0.35 |
Incremental Performance Percentage Determination | |||
Weighting (A) | OCAP Multiple (Interpolated) (B) | Performance Percentage (A × B) | |
EBITDA Measure | 50% | [Based on Actual Performance] | [Percentage Result 1] |
Unpaid Downtime Measure | 25% | [Based on Actual Performance] | [Percentage Result 2] |
Safety Measure | 25% | [Based on Actual Performance] | [Percentage Result 3] |
Totals: | 100% | N/A | Sum of Results 1 - 3 |
Blended Performance Percentage Determination | |||
Weighting (A) | OCAP Multiple (Interpolated) (B) | Performance Percentage (A × B) | |
EBITDA Measure Q3 | 25% | [Based on Actual Performance] | [Percentage Result 1] |
Unpaid Downtime Measure Q3 | 12.5% | [Based on Actual Performance] | [Percentage Result 2] |
Safety Measure Q3 | 12.5% | [Based on Actual Performance] | [Percentage Result 3] |
EBITDA Measure Q4 | 25% | [Based on Actual Performance] | [Percentage Result 4] |
Unpaid Downtime Measure Q4 | 12.5% | [Based on Actual Performance] | [Percentage Result 5] |
Safety Measure Q4 | 12.5% | [Based on Actual Performance] | [Percentage Result 6] |
Totals: | 100% | N/A | Sum of Results 1 - 6 |
Notes | Issuer | Guarantor | ||
4.90% Senior Notes due 2020 | Noble Holding International Limited | Noble-Cayman | ||
4.625% Senior Notes due 2021 | Noble Holding International Limited | Noble-Cayman | ||
3.95% Senior Notes due 2022 | Noble Holding International Limited | Noble-Cayman | ||
7.75% Senior Notes due 2024 | Noble Holding International Limited | Noble-Cayman | ||
7.95% Senior Notes due 2025 | Noble Holding International Limited | Noble-Cayman | ||
6.20% Senior Notes due 2040 | Noble Holding International Limited | Noble-Cayman | ||
6.05% Senior Notes due 2041 | Noble Holding International Limited | Noble-Cayman | ||
5.25% Senior Notes due 2042 | Noble Holding International Limited | Noble-Cayman | ||
8.95% Senior Notes due 2045 | Noble Holding International Limited | Noble-Cayman | ||
1. | I have reviewed this quarterly report on Form 10-Q of Noble Corporation plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert W. Eifler | August 7, 2020 | |
Robert W. Eifler | Date | |
President and Chief Executive Officer (Principal Executive Officer) of Noble Corporation plc, a public limited company incorporated under the laws of England and Wales | ||
1. | I have reviewed this quarterly report on Form 10-Q of Noble Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert W. Eifler | August 7, 2020 | |
Robert W. Eifler | Date | |
President and Chief Executive Officer (Principal Executive Officer) of Noble Corporation, a Cayman Islands company | ||
1. | I have reviewed this quarterly report on Form 10-Q of Noble Corporation plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Richard B. Barker | August 7, 2020 |
Richard B. Barker | Date |
Senior Vice President and Chief Financial Officer (Principal Financial Officer) of Noble Corporation plc, a public limited company incorporated under the laws of England and Wales | |
1. | I have reviewed this quarterly report on Form 10-Q of Noble Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Richard B. Barker | August 7, 2020 |
Richard B. Barker | Date |
Director, Senior Vice President and Chief Financial Officer (Principal Financial Officer) of Noble Corporation, a Cayman Islands company | |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 7, 2020 | /s/ Robert W. Eifler |
Robert W. Eifler | |
President and Chief Executive Officer (Principal Executive Officer) of Noble Corporation plc, a public limited company incorporated under the laws of England and Wales | |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 7, 2020 | /s/ Robert W. Eifler |
Robert W. Eifler | |
President and Chief Executive Officer (Principal Executive Officer) of Noble Corporation, a Cayman Islands company | |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 7, 2020 | /s/ Richard B. Barker |
Richard B. Barker | |
Senior Vice President and Chief Financial Officer (Principal Financial Officer) of Noble Corporation plc, a public limited company incorporated under the laws of England and Wales | |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
August 7, 2020 | /s/ Richard B. Barker |
Richard B. Barker | |
Director, Senior Vice President and Chief Financial Officer (Principal Financial Officer) of Noble Corporation, a Cayman Islands company | |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Allowance for credit losses | $ 3,069 | $ 1,939 |
| Ordinary shares, shares outstanding (in shares) | 251,041 | 249,200 |
| Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
| Noble Corp | ||
| Allowance for credit losses | $ 3,069 | $ 1,939 |
| Ordinary shares, shares outstanding (in shares) | 261,246 | 261,246 |
| Common stock, par value (usd per share) | $ 0.10 | $ 0.10 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Operating revenues | ||||
| Revenue from contract with customer | $ 237,918,000 | $ 292,936,000 | $ 519,229,000 | $ 575,824,000 |
| Operating costs and expenses | ||||
| Depreciation and amortization | 89,365,000 | 111,148,000 | 193,046,000 | 220,726,000 |
| General and administrative | 73,003,000 | 116,252,000 | 90,842,000 | 132,251,000 |
| Pre-petition charges | 10,515,000 | 0 | 10,515,000 | 0 |
| Loss on impairment | 0 | 0 | 1,119,517,000 | 0 |
| Total operating costs and expenses | 333,371,000 | 411,646,000 | 1,747,237,000 | 718,346,000 |
| Operating loss | (95,453,000) | (118,710,000) | (1,228,008,000) | (142,522,000) |
| Other income (expense) | ||||
| Interest expense, net of amounts capitalized | (70,279,000) | (68,976,000) | (141,159,000) | (139,220,000) |
| Gain (loss) on extinguishment of debt, net | (593,000) | 0 | (593,000) | 31,266,000 |
| Interest income and other, net | 2,956,000 | 1,860,000 | 674,000 | 4,366,000 |
| Loss from continuing operations before income taxes | (163,369,000) | (185,826,000) | (1,369,086,000) | (246,110,000) |
| Income tax benefit | 121,175,000 | 37,182,000 | 264,215,000 | 34,317,000 |
| Net loss from continuing operations | (42,194,000) | (148,644,000) | (1,104,871,000) | (211,793,000) |
| Net loss from discontinued operations, net of tax | 0 | 0 | 0 | (3,821,000) |
| Net loss | (42,194,000) | (148,644,000) | (1,104,871,000) | (215,614,000) |
| Net income attributable to noncontrolling interests | 0 | (3,316,000) | 0 | (7,235,000) |
| Net income (loss) attributable to parent | (42,194,000) | (151,960,000) | (1,104,871,000) | (222,849,000) |
| Net loss from continuing operations | (42,194,000) | (151,960,000) | (1,104,871,000) | (219,028,000) |
| Net loss from discontinued operations, net of tax | 0 | 0 | 0 | (3,821,000) |
| Net income (loss) attributable to parent | $ (42,194,000) | $ (151,960,000) | $ (1,104,871,000) | $ (222,849,000) |
| Basic: | ||||
| Loss from continuing operations (usd per share) | $ (0.17) | $ (0.61) | $ (4.41) | $ (0.88) |
| Loss from discontinued operations (usd per share) | 0 | 0 | 0 | (0.02) |
| Net loss attributable to Noble Corporation plc (usd per share) | (0.17) | (0.61) | (4.41) | (0.90) |
| Diluted: | ||||
| Loss from continuing operations (usd per share) | (0.17) | (0.61) | (4.41) | (0.88) |
| Loss from discontinued operations (usd per share) | 0 | 0 | 0 | (0.02) |
| Net loss attributable to Noble Corporation plc (usd per share) | $ (0.17) | $ (0.61) | $ (4.41) | $ (0.90) |
| Noble Corp | ||||
| Operating revenues | ||||
| Revenue from contract with customer | $ 237,918,000 | $ 292,936,000 | $ 519,229,000 | $ 575,824,000 |
| Operating costs and expenses | ||||
| Depreciation and amortization | 89,040,000 | 110,538,000 | 192,149,000 | 219,310,000 |
| General and administrative | 17,552,000 | 8,672,000 | 24,303,000 | 16,267,000 |
| Loss on impairment | 0 | 0 | 1,119,517,000 | 0 |
| Total operating costs and expenses | 266,595,000 | 303,037,000 | 1,668,497,000 | 599,661,000 |
| Operating loss | (28,677,000) | (10,101,000) | (1,149,268,000) | (23,837,000) |
| Other income (expense) | ||||
| Interest expense, net of amounts capitalized | (70,279,000) | (68,976,000) | (141,159,000) | (139,220,000) |
| Gain (loss) on extinguishment of debt, net | (593,000) | 0 | (593,000) | 31,266,000 |
| Interest income and other, net | 2,959,000 | 1,860,000 | 665,000 | 4,366,000 |
| Loss from continuing operations before income taxes | (96,590,000) | (77,217,000) | (1,290,355,000) | (127,425,000) |
| Income tax benefit | 121,176,000 | 37,182,000 | 264,216,000 | 34,317,000 |
| Net loss from continuing operations | 24,586,000 | (40,035,000) | (1,026,139,000) | (93,108,000) |
| Net loss from discontinued operations, net of tax | 0 | 0 | 0 | (3,821,000) |
| Net loss | 24,586,000 | (40,035,000) | (1,026,139,000) | (96,929,000) |
| Net income attributable to noncontrolling interests | 0 | (3,316,000) | 0 | (7,235,000) |
| Net income (loss) attributable to parent | 24,586,000 | (43,351,000) | (1,026,139,000) | (104,164,000) |
| Net income (loss) attributable to parent | 24,586,000 | (43,351,000) | (1,026,139,000) | (104,164,000) |
| Contract drilling services | ||||
| Operating revenues | ||||
| Revenue from contract with customer | 220,141,000 | 274,817,000 | 487,505,000 | 545,318,000 |
| Operating costs and expenses | ||||
| Cost of services | 144,154,000 | 168,865,000 | 305,299,000 | 340,593,000 |
| Contract drilling services | Noble Corp | ||||
| Operating revenues | ||||
| Revenue from contract with customer | 220,141,000 | 274,817,000 | 487,505,000 | 545,318,000 |
| Operating costs and expenses | ||||
| Cost of services | 143,669,000 | 168,446,000 | 304,510,000 | 339,308,000 |
| Reimbursables and other | ||||
| Operating revenues | ||||
| Revenue from contract with customer | 17,777,000 | 18,119,000 | 31,724,000 | 30,506,000 |
| Operating costs and expenses | ||||
| Cost of services | 16,334,000 | 15,381,000 | 28,018,000 | 24,776,000 |
| Reimbursables and other | Noble Corp | ||||
| Operating revenues | ||||
| Revenue from contract with customer | 17,777,000 | 18,119,000 | 31,724,000 | 30,506,000 |
| Operating costs and expenses | ||||
| Cost of services | $ 16,334,000 | $ 15,381,000 | $ 28,018,000 | $ 24,776,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Amortization of deferred pension plan, tax provision | $ 150 | $ 146 | $ 300 | $ 291 |
| Noble Corp | ||||
| Amortization of deferred pension plan, tax provision | $ 150 | $ 146 | $ 300 | $ 291 |
Organization and Basis of Presentation |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Organization and Basis of Presentation | Note 1— Organization and Basis of Presentation Noble Corporation plc, a public limited company incorporated under the laws of England and Wales (“Noble-UK”), is a leading offshore drilling contractor for the oil and gas industry. We provide contract drilling services to the international oil and gas industry with our global fleet of mobile offshore drilling units. As of June 30, 2020, our fleet of 24 drilling rigs consisted of 12 floaters and 12 jackups. We report our contract drilling operations as a single reportable segment, Contract Drilling Services, which reflects how we manage our business. The mobile offshore drilling units comprising our offshore rig fleet operate in a global market for contract drilling services and are often redeployed to different regions due to changing demands of our customers, which consist primarily of large, integrated, independent and government-owned or controlled oil and gas companies throughout the world. Noble Corporation, a Cayman Islands company (“Noble-Cayman”), is an indirect, wholly-owned subsidiary of Noble-UK, our publicly-traded parent company. Noble-UK’s principal asset is all of the shares of Noble-Cayman. Noble-Cayman has no public equity outstanding. The condensed consolidated financial statements of Noble-UK include the accounts of Noble-Cayman, and Noble-UK conducts substantially all of its business through Noble-Cayman and its subsidiaries. The accompanying unaudited condensed consolidated financial statements of Noble-UK and Noble-Cayman have been prepared pursuant to the rules and regulations of the US Securities and Exchange Commission as they pertain to Quarterly Reports on Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements are prepared on a going concern basis and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a recurring nature. The December 31, 2019 Condensed Consolidated Balance Sheets presented herein are derived from the December 31, 2019 audited consolidated financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019, filed by both Noble-UK and Noble-Cayman. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.
|
| Chapter 11 Proceedings, Liquidity and Going Concern | Chapter 11 Proceedings, Liquidity and Going Concern The offshore drilling industry experienced a significant expansion from the early 2000s to the mid-2010s, during which time the Company constructed or rebuilt each rig in our current fleet and incurred a substantial amount of debt in connection therewith. Since that time, the industry has experienced a significant sustained reduction in oil prices and a substantial increase in offshore rig supply, which have led to an industry-wide supply and demand imbalance and an extremely challenging environment. During such period of supply and demand imbalance, we accepted contracts with dayrates and terms that were lower than anticipated when these capital projects and the associated debt were incurred. As a result, the Company has incurred significant losses since 2016 and significant impairment losses since 2014. The challenging environment experienced through 2019 was further exacerbated in the beginning of 2020 by the novel strain of coronavirus (“COVID-19”) pandemic, as well as production level disagreements that developed among members of the Organization of Petroleum Exporting Countries and other oil and gas producing nations (“OPEC+”) ultimately culminating with increased production by Saudi Arabia and Russia. The actions taken by governmental authorities around the world to mitigate the spread of COVID-19 and the risk of infection have altered, and are expected to continue to alter, policies of governments and companies and behaviors of customers around the world in ways that we anticipate will have a continued significant negative effect on oil consumption. The convergence of these events resulted in an unprecedented steep decline in the demand for oil and a substantial surplus in the supply of oil and is expected to continue to have a severe impact on our business, operations and financial condition in various respects, including substantially reducing demand for our services. As a result of the foregoing matters, we have actively pursued a variety of transactions and cost-cutting measures, including but not limited to potential refinancing transactions by us or our subsidiaries, potential capital exchange transactions, and a potential waiver from lenders under, or amendment to, our 2017 Credit Facility (as defined herein). In the first half of 2020, we enacted further reductions in corporate discretionary expenditures, capital expenditures and workforce, and increased focus on our operational efficiencies. On July 31, 2020 (the “Petition Date”), Noble-UK and certain of its subsidiaries, including Noble-Cayman (collectively, the “Debtors”) filed voluntary petitions in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Chapter 11 proceedings are being jointly administered under the caption Noble Corporation plc, et al. (Case No. 20-33826) (“Chapter 11 Cases”). The Debtors are now operating their business as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court pursuant to sections 1107 and 1108 of the Bankruptcy Code and orders of the Bankruptcy Court. To ensure the Debtors’ ability to continue operating in the ordinary course of business, on August 3, 2020, the Bankruptcy Court entered a variety of orders providing “first day” relief to the Debtors, including the authority for the Debtors to continue using their cash management system, pay employee wages and benefits and pay vendors and suppliers in the ordinary course of business. The filing of the Chapter 11 Cases constituted events of default that accelerated the Company’s obligations under the indentures governing our outstanding senior notes and our 2017 Credit Facility. As a result, we are no longer able to borrow any amounts under our 2017 Credit Facility. In addition, the principal and interest due under our outstanding senior notes and 2017 Credit Facility became immediately due and payable and have been presented as “Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet at June 30, 2020. However, any efforts to enforce such payment obligations with respect to our senior notes and 2017 Credit Facility are automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditors’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. We do not have sufficient cash on hand or available liquidity to repay such outstanding debt. As of June 30, 2020, we had an aggregate outstanding principal amount of approximately $3.4 billion in senior notes with stated maturities at various times from 2020 through 2045 and $545.0 million of borrowings outstanding under our 2017 Credit Facility. On July 15, 2020, we announced that we elected not to make the semiannual interest payment due in respect of our Senior Notes due 2024 (the “2024 Notes”), which was due on July 15, 2020. On the Petition Date, the Debtors entered into a Restructuring Support Agreement (together with all exhibits and schedules thereto, the “Restructuring Support Agreement”) with an ad hoc group of certain holders of approximately 70% of the aggregate outstanding principal amount of our outstanding Senior Notes due 2026 (the “2026 Notes”) and an ad hoc group of certain holders of approximately 45% of the aggregate outstanding principal amount of our other outstanding senior notes, taken as a whole (the “Legacy Notes”). Among other things, the Restructuring Support Agreement provides that the Consenting Creditors (as defined in the Restructuring Support Agreement) will support the Debtors' restructuring efforts as set forth in, and subject to the terms and conditions of, the Restructuring Support Agreement. The Debtors have agreed to seek approval of a plan of reorganization and complete their restructuring efforts subject to the terms, conditions, and milestones contained in the Restructuring Support Agreement and otherwise comply with the terms and requirements set forth in the Restructuring Support Agreement. The Restructuring Support Agreement will become effective upon the execution and delivery of the Restructuring Support Agreement by the holders of at least 66.67% of the aggregate principal amount of the outstanding 2026 Notes and holders of at least 66.67% of the aggregate principal amount of the outstanding Legacy Notes. The Restructuring Support Agreement contains customary conditions, representations, and warranties of the parties and is subject to a number of conditions, including, among others, the accuracy of the representations and warranties of the parties and compliance with the obligations set forth in the Restructuring Support Agreement. The Restructuring Support Agreement also provides for termination by the parties upon the occurrence of certain events. Based on our evaluation of the circumstances described above, substantial doubt exists about our ability to continue as a going concern. The unaudited condensed consolidated financial statements included herein were prepared on a going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, as a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. Our liquidity requirements, and the availability to us of adequate capital resources are difficult to predict at this time. Notwithstanding the protections available to us under the Bankruptcy Code, if our future sources of liquidity are insufficient, we would face substantial liquidity constraints and will likely be required to significantly reduce, delay or eliminate capital expenditures, implement further cost reductions, seek other financing alternatives or cease operations as a going concern and liquidate. While operating as debtors-in-possession during the Chapter 11 Cases, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business, for amounts other than those reflected in these condensed consolidated financial statements. Further, a chapter 11 plan could materially change the amounts and classifications of assets and liabilities reported in these condensed consolidated financial statements. The condensed consolidated financial statements do not reflect any adjustments that might be necessary should we be unable to continue as a going concern. As a result of the filing of the Chapter 11 Cases, our Board of Directors determined to cancel the Company’s share ownership policy applicable to the officers and directors, and the Company will consider an appropriate policy upon the Company’s emergence from bankruptcy. Pre-petition Charges Pre-petition charges consist primarily of professional fees related to but incurred prior to the filing of the Chapter 11 Cases.
|
Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Accounting Standards Update and Change in Accounting Principle [Abstract] | |
| Accounting Pronouncements | Note 2— Accounting Pronouncements Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 (Topic 326, “Measurement of Credit Losses on Financial Instruments”), which requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income, including loans, debt securities, trade receivables, net investments in leases and available-for-sale debt securities. This guidance is effective for annual and interim periods beginning after December 15, 2019. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We adopted this standard effective January 1, 2020 and our adoption did not have a material effect on our condensed consolidated financial statements. Issued Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, which amends Accounting Standards Codification (“ASC”) Subtopic 740, “Income Taxes.” This update simplifies the accounting for income taxes by removing certain exceptions to general principles. The amendment is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, and is required to be adopted on a retrospective basis for all periods presented. We do not expect the adoption of this guidance to materially affect our condensed consolidated financial statements. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our condensed consolidated financial statements.
|
Consolidated Joint Ventures |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Noncontrolling Interest [Abstract] | |
| Consolidated Joint Ventures | Note 3— Consolidated Joint Ventures On December 3, 2019, we completed a transaction with a subsidiary of Royal Dutch Shell plc (“Shell”), in which Shell bought out the remaining term of its drilling contract for the drillship Noble Bully II for $166.9 million, and we acquired Shell’s 50 percent interests in the Bully I and Bully II joint ventures for $106.7 million. As a result of this transaction, the former joint venture entities became our wholly-owned subsidiaries. Shell’s equity interests were presented as noncontrolling interests on our condensed consolidated financial statements. During the three and six months ended June 30, 2019, the Bully joint ventures approved and paid dividends totaling $25.0 million and $35.1 million, respectively. Of these amounts, 50 percent was paid to our former joint venture partner, Shell.
|
Income (Loss) Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) Per Share | Note 4— Income (Loss) Per Share The following table presents the computation of basic and diluted loss per share for Noble-UK:
Only those items having a dilutive impact on our basic loss per share are included in diluted loss per share. For the three and six months ended June 30, 2020 and 2019, approximately 11.6 million and 13.4 million share-based awards, respectively, were excluded from diluted loss per share since the effect would have been anti-dilutive. Share capital As of June 30, 2020, Noble-UK had approximately 251.0 million shares outstanding and trading as compared to approximately 249.2 million shares outstanding and trading at December 31, 2019. At our 2020 Annual General Meeting, shareholders authorized our Board of Directors to increase share capital through the issuance of up to approximately 8.7 million ordinary shares (at current nominal value of $0.01 per share). That authority to allot shares will expire at the end of our 2021 Annual General Meeting unless we seek an extension from shareholders at that time. Other than shares issued to our directors under our Noble Corporation plc 2017 Director Omnibus Plan, the authority was not used to allot shares during the six months ended June 30, 2020. The declaration and payment of dividends require the authorization of the Board of Directors of Noble-UK, provided that such dividends on issued share capital may be paid only out of Noble-UK’s “distributable reserves” on its statutory balance sheet in accordance with UK law. Therefore, Noble-UK is not permitted to pay dividends out of share capital, which includes share premium. Noble has not paid dividends since the third quarter of 2016. The payment of future dividends will depend on our results of operations, financial condition, cash requirements, future business prospects, contractual and indenture restrictions and other factors deemed relevant by our Board of Directors; however, at this time, we do not expect to pay any dividends in the foreseeable future. Share repurchases Under UK law, the Company is only permitted to purchase its own shares by way of an “off-market purchase” in a plan approved by shareholders. We currently do not have shareholder authority to repurchase shares. During the six months ended June 30, 2020 and 2019, we did not repurchase any of our shares.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Note 5— Property and Equipment Property and equipment, at cost consisted of the following:
On February 28, 2019, we purchased a new GustoMSC CJ46 rig, the Noble Joe Knight, from the PaxOcean Group in connection with a concurrently awarded drilling contract in the Middle East region. We paid $83.8 million for the rig, with $30.2 million paid in cash and the remaining $53.6 million of the purchase price financed with a loan by the seller. See “Note 6— Debt” for additional information. During the six months ended June 30, 2020, we recognized a non-cash loss on impairment of $1.1 billion, related to our long-lived assets. During the six months ended June 30, 2019, we recognized no impairment charges to long-lived assets. See “Note 9— Loss on Impairment” for additional information.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Note 6— Debt Credit Facilities 2017 Credit Facility On December 21, 2017, Noble Cayman Limited, a Cayman Islands company and a wholly-owned indirect subsidiary of Noble-Cayman; Noble International Finance Company, a Cayman Islands company and a wholly-owned indirect subsidiary of Noble-Cayman; and Noble Holding UK Limited, a company incorporated under the laws of England and Wales and a wholly-owned direct subsidiary of Noble-UK (“NHUK”), as parent guarantor, entered into a new senior unsecured credit agreement (as amended, the “2017 Credit Facility”). In July 2019, we executed an amendment to our 2017 Credit Facility (the “First Amendment to the 2017 Credit Facility”), which, among other things, reduced the maximum aggregate amount of commitments thereunder from $1.5 billion to $1.3 billion. As a result of such reduction in the maximum aggregate amount of commitments, we recognized a net loss of approximately $0.7 million in the year ended December 31, 2019. Prior to the filing of the Chapter 11 Cases, borrowings under the 2017 Credit Facility were subject to certain conditions precedent to advance loans. The First Amendment to the 2017 Credit Facility added a requirement that any amounts drawn under the 2017 Credit Facility plus any undrawn amounts needed to cause us to be in compliance with the $300.0 million Liquidity (as defined in the First Amendment to the 2017 Credit Facility) covenant (the “Minimum Liquidity Covenant”) not exceed the amount of the Indenture Secured Debt Basket (as defined in the First Amendment to the 2017 Credit Facility) at the time of each borrowing. The First Amendment to the 2017 Credit Facility also replaced the debt to capitalization ratio financial covenant with a Senior Guaranteed Indebtedness to Adjusted EBITDA (each as defined in the First Amendment to the 2017 Credit Facility) ratio financial covenant, as described below. Prior to the filing of the Chapter 11 Cases, the 2017 Credit Facility was scheduled to mature in January 2023. Borrowings were available for working capital and other general corporate purposes. The 2017 Credit Facility provided for a letter of credit sub-facility in the amount of $15.0 million, with the ability to increase such amount up to $500.0 million with the approval of the lenders. The 2017 Credit Facility has provisions that vary the applicable interest rates for borrowings based upon our debt ratings. Borrowings under the 2017 Credit Facility bear interest at LIBOR plus an applicable margin, which is currently the maximum contractual rate of 4.25%. At June 30, 2020, the interest rates in effect under the 2017 Credit Facility were the highest permitted interest rates under that agreement. We also pay a commitment fee under the 2017 Credit Facility on the daily unused amount of the underlying commitments, which varies depending on our credit ratings. The maximum aggregate amount of commitments under the 2017 Credit Facility on June 30, 2020 was $1.3 billion with approximately $275.6 million available to borrow. In April 2020, we borrowed $100.0 million under the 2017 Credit Facility to pay down our indebtedness under the Seller Loans (as defined herein) as further described below. At June 30, 2020, we had $545.0 million of borrowings outstanding under the 2017 Credit Facility. At June 30, 2020, we had $7.5 million of letters of credit issued under the 2017 Credit Facility and an additional $7.5 million in letters of credit and surety bonds issued under unsecured bilateral arrangements. The filing of the Chapter 11 Cases constituted events of default that accelerated the Company’s obligations under the indentures governing our outstanding senior notes and our 2017 Credit Facility. As a result, we are no longer able to borrow any amounts under our 2017 Credit Facility. In addition, the principal and interest due under our indentures and the 2017 Credit Facility became immediately due and payable, and therefore have been presented as “Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet at June 30, 2020. However, any efforts to enforce such payment obligations with respect to our senior notes and 2017 Credit Facility are automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditor's rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. See “Note 1— Organization and Basis of Presentation” for additional information. 2015 Credit Facility Effective January 2018, in connection with entering into the 2017 Credit Facility, we amended our $300.0 million senior unsecured credit facility that would have matured in January 2020 and was guaranteed by our indirect, wholly-owned subsidiaries, Noble Holding (U.S.) LLC and Noble Holding International Limited (as amended, the “2015 Credit Facility”). On December 20, 2019, we repaid $300.0 million of outstanding borrowings and terminated the 2015 Credit Facility. Seller Loans 2019 Seller Loan In February 2019, we purchased the Noble Joe Knight for $83.8 million with a $53.6 million seller-financed secured loan (the “2019 Seller Loan”). The 2019 Seller Loan had a term of four years and required a 5% principal payment at the end of the third year with the remaining 95% of the principal due at the end of the term. The 2019 Seller Loan bore a cash interest rate of 4.25% and the equivalent of a 1.25% interest rate paid-in-kind over the four-year term of the 2019 Seller Loan. Based on the terms of the 2019 Seller Loan, the 1.25% paid-in-kind interest rate was accelerated into the first year, resulting in an overall first year interest rate of 8.91%, of which only 4.25% was payable in cash. Thereafter, the paid-in-kind interest ended and the cash interest rate of 4.25% was payable for the remainder of the term. 2018 Seller Loan In September 2018, we purchased the Noble Johnny Whitstine for $93.8 million with a $60.0 million seller-financed secured loan (the “2018 Seller Loan” and, together with the 2019 Seller Loan, the “Seller Loans”). The 2018 Seller Loan had a term of four years and required a 5% principal payment at the end of the third year with the remaining 95% of the principal due at the end of the term. The 2018 Seller Loan bore a cash interest rate of 4.25% and the equivalent of a 1.25% interest rate paid-in-kind over the four-year term of the 2018 Seller Loan. Based on the terms of the 2018 Seller Loan, the 1.25% paid-in-kind interest rate was accelerated into the first year, resulting in an overall first year interest rate of 8.91%, of which only 4.25% was payable in cash. Thereafter, the paid-in-kind interest ended and the cash interest rate of 4.25% was payable for the remainder of the term. Both of the Seller Loans were guaranteed by Noble-Cayman and each was secured by a mortgage on the applicable rig and by the pledge of the shares of the applicable single-purpose entity that owned the relevant rig. Each Seller Loan contained a debt to total capitalization ratio requirement that such ratio not exceed 0.55 at the end of each fiscal quarter, a $300.0 million minimum liquidity financial covenant and an asset and revenue covenant substantially similar to the 2026 Notes, as well as other covenants and provisions customarily found in secured transactions, including a cross default provision. Each Seller Loan required immediate repayment on the occurrence of certain events, including the termination of the drilling contract associated with the relevant rig or circumstances in connection with a material adverse effect. Upon completion of our financial statements for the quarter ended March 31, 2020, we would have exceeded the debt to total capitalization ratio requirement under the Seller Loans. In April 2020, the Company agreed with the lender under the Seller Loans to pay off 85% of the outstanding principal amount of the Seller Loans in exchange for a discount to the outstanding loan balance. On April 20, 2020, the Company made a payment of $48.1 million under the 2019 Seller Loan and $53.6 million under the 2018 Seller Loan, and, upon the lender’s receipt of such payment, interest ceased accruing, and the financial covenants set forth in the agreements relating to the Seller Loans ceased to apply. As a result of such early repayment, we avoided a default under the Seller Loans, and the discount was agreed upon prior to any default. On July 20, 2020, at the conclusion of the 90-day period following the payment date, all outstanding amounts were reduced to zero, all security was released, and the Seller Loans were terminated. As a result of the early repayment of the Seller Loans, we recognized a loss of approximately $0.6 million in the three and six months ended June 30, 2020. The aggregate principal balance subject to final release was $17.8 million, and is included in “Current maturities of long-term debt” in our unaudited Condensed Consolidated Balance Sheet as of June 30, 2020. Senior Notes Interest Rate Adjustments Our Senior Notes due 2025 and our Senior Notes due 2045 are subject to provisions that vary the applicable interest rates based on our debt rating. Effective April 2018, these senior notes have reached the contractually defined maximum interest rate set for each rating agency and no further interest rate increases are possible. The interest rates on these senior notes may be decreased if our debt ratings were to be raised by either rating agency above specified levels. Our other outstanding senior notes do not contain provisions varying applicable interest rates based upon our credit ratings. Debt Tender Offers, Repayments and Open Market Repurchases In March 2019, we completed cash tender offers for our Senior Notes due 2020, Senior Notes due 2021, Senior Notes due 2022 and 2024 Notes. Pursuant to such tender offers, we purchased $440.9 million aggregate principal amount of these senior notes for $400.0 million, plus accrued interest, using cash on hand and borrowings under the 2015 Credit Facility. As a result of this transaction, we recognized a net gain of approximately $31.3 million. Covenants At June 30, 2020, the 2017 Credit Facility contained certain financial covenants applicable to NHUK and its subsidiaries, including (i) a covenant that limits our ratio of Senior Guaranteed Indebtedness to Adjusted EBITDA as of the last day of each fiscal quarter, with such ratio not being permitted to exceed 4.0 to 1.0 for the fiscal quarters ending September 30, 2019 through December 31, 2020, 3.5 to 1.0 for the fiscal quarters ending March 31, 2021 through December 31, 2021 and 3.0 to 1.0 for the fiscal quarters ending March 31, 2022 and thereafter, (ii) the Minimum Liquidity Covenant, (iii) a covenant that the ratio of the Rig Value (as defined in the 2017 Credit Facility) of Marketed Rigs (as defined in the 2017 Credit Facility) to the sum of commitments under the 2017 Credit Facility plus indebtedness for borrowed money of the borrowers and guarantors, in each case, that directly own Marketed Rigs, is not less than 3:00 to 1:00 at the end of each fiscal quarter and (iv) a covenant that the ratio of (A) the Rig Value of the Closing Date Rigs (as defined in the 2017 Credit Facility) that are directly wholly owned by the borrowers and guarantors to (B) the Rig Value of the Closing Date Rigs owned by NHUK, subsidiaries of NHUK and certain local content affiliates, is not less than 80% at the end of each fiscal quarter (such covenants described in (iii) and (iv) of this paragraph, the “Guarantor Ratio Covenants”). At June 30, 2020, the 2017 Credit Facility also included restrictions on borrowings if, after giving effect to any such borrowings and the application of the proceeds thereof, the aggregate amount of Available Cash (as defined in the 2017 Credit Facility) would exceed $200.0 million and a requirement that any amounts drawn under the 2017 Credit Facility plus any undrawn amounts needed to cause us to be in compliance with the Minimum Liquidity Covenant not exceed the amount of the Indenture Secured Debt Basket at the time of each borrowing. The Indenture Secured Debt Basket is fully defined in the credit agreement governing the 2017 Credit Facility but is generally calculated as 15% of Consolidated Net Tangible Assets of Noble-Cayman minus other secured debt excluding Permitted Liens (as defined in the 2017 Credit Facility) such as those connected to the Seller Loans. Commitments under the 2017 Credit Facility total $1.3 billion; however, prior to the filing of the Chapter 11 Cases, the maximum availability was constrained by the Indenture Secured Debt Basket. In addition, a certain amount of commitments is required to remain unused to satisfy the Minimum Liquidity Covenant. As of June 30, 2020, we had $545.0 million of borrowings and $7.5 million of letters of credit outstanding under the 2017 Credit Facility, and we would have been able to borrow a maximum of an additional approximately $275.6 million thereunder. NHUK has guaranteed the obligations of the borrowers under the 2017 Credit Facility. In addition, certain indirect subsidiaries of Noble-UK that own rigs are guarantors under the 2017 Credit Facility. The 2017 Credit Facility contains additional restrictive covenants generally applicable to NHUK and its subsidiaries, including restrictions on the incurrence of liens and indebtedness, mergers and other fundamental changes, restricted payments, repurchases and redemptions of indebtedness with maturities outside of the maturity of the 2017 Credit Facility, sale and leaseback transactions and transactions with affiliates. The indenture for the 2026 Notes contains certain covenants and restrictions, including, among others, restrictions on our subsidiaries’ ability to incur certain additional indebtedness. Additionally, the subsidiary guarantors must own, directly or indirectly, (i) assets comprising at least 85% of the revenue of Noble-Cayman and its subsidiaries on a consolidated basis and (ii) jackups, semisubmersibles, drillships, submersibles or other mobile offshore drilling units of material importance, the combined book value of which comprises at least 85% of the combined book value of all such assets of Noble-Cayman and its subsidiaries on a consolidated basis, in each case, with respect to the most recently completed fiscal year. In addition to the covenants from the 2017 Credit Facility and the 2026 Notes described above and the covenants from the Seller Loans described under “—Seller Loans” above, the indentures governing our outstanding senior notes contain covenants that place restrictions on certain merger and consolidation transactions, unless we are the surviving entity or the other party assumes the obligations under the indenture, and on the ability to sell or transfer all or substantially all of our assets. There are also restrictions on incurring or assuming certain liens and on entering into sale and lease-back transactions. The filing of the Chapter 11 Cases constituted events of default that accelerated our obligations under the indentures governing our outstanding senior notes and our 2017 Credit Facility. However, any efforts to enforce such payment obligations with respect to our senior notes and 2017 Credit Facility are automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditors’ rights of enforcement are subject to the applicable provisions of the Bankruptcy Code. Fair Value of Debt Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The estimated fair value of our debt instruments was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar remaining maturities (Level 2 measurement). The carrying amount of the 2017 Credit Facility approximates fair value as the interest rate is variable and reflective of market rates. All remaining fair value disclosures are presented in “Note 12— Fair Value of Financial Instruments.” The following table presents the carrying value, net of unamortized debt issuance costs and discounts, and the estimated fair value of our total debt, not including the effect of unamortized debt issuance costs, respectively:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) | Note 7— Accumulated Other Comprehensive Income (Loss) The following table presents the changes in the accumulated balances for each component of “Accumulated other comprehensive income (loss)” (“AOCI”) for the three and six months ended June 30, 2020 and 2019. All amounts within the table are shown net of tax.
(1) Defined benefit pension items relate to actuarial changes and the amortization of prior service costs. Reclassifications from AOCI are recognized as expense on our Condensed Consolidated Statements of Operations through “Other income (expense).” See “Note 11— Employee Benefit Plans” for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Customers |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue and Customers | Note 8— Revenue and Customers Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets. The following table provides information about contract assets and contract liabilities from contracts with customers:
Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the six months ended June 30, 2020 and 2019 are as follows:
Transaction Price Allocated to the Remaining Performance Obligations The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations, by rig type, as of June 30, 2020:
(1) Represents a six-month period beginning July 1, 2020. The revenue included above consists of expected mobilization, demobilization, and upgrade revenue for unsatisfied performance obligations. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at June 30, 2020. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have taken the optional exemption, permitted by accounting standards, to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly, or more frequent, periods, the variability of which will be resolved at the time of the future services. Disaggregation of Revenue The following table provides information about contract drilling revenue by rig types:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on Impairment |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Asset Impairment Charges [Abstract] | |
| Loss on Impairment | Note 9— Loss on Impairment Asset Impairments We evaluate our property and equipment for impairment whenever there are changes in facts that suggest that the value of the asset is not recoverable. In connection with the preparation of our financial statements for the first and second quarter of 2020 and in light of the rapid and unexpected decline in demand for our services resulting from the global COVID-19 pandemic, the steep decline in the demand for oil and the substantial surplus in the supply of oil, we conducted a review of our fleet to determine recoverability. The review included an assessment of certain assumptions, including future marketability of each unit in light of the current market conditions and its current technical specifications. Assumptions used in our assessment included, but were not limited to, timing of future contract awards and expected operating dayrates, operating costs, utilization rates, discount rates, capital expenditures, reactivation costs, estimated economic useful lives and, in certain cases, our belief that a drilling unit is no longer marketable and is unlikely to return to service in the near to medium term. Based upon our impairment analysis during the second quarter, no impairment charges were made. During the first quarter, we impaired the carrying value to their corresponding estimated fair values for the Noble Bully I, Noble Bully II, Noble Danny Adkins and Noble Jim Day. For our impaired units, we estimated the fair value of these units by applying the income valuation approach utilizing significant unobservable inputs, representative of a Level 3 fair value measurement. If we experience prolonged unfavorable changes to current market conditions, reactivation costs or dayrates or if we are unable to secure new or extended contracts for our active rigs at favorable rates, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term, resulting in the need to write down the affected assets to their corresponding estimated fair values. During the six months ended June 30, 2020, we recognized approximately $1.1 billion in impairment charges related to the Noble Bully I, Noble Bully II, Noble Danny Adkins and Noble Jim Day, and $5.5 million of impairment charges related to certain capital spare equipment. The impact of the current global economic turmoil continues to evolve and its duration and ultimate disruption to our customers’ and our business cannot be estimated at this time. Should such disruption continue, weaker economic conditions generally could result in further impairments. During the three months ended June 30, 2020 and the three and six months ended June 30, 2019, we recognized no impairment charges on our fleet.
|
Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 10— Income Taxes At June 30, 2020, the reserves for uncertain tax positions totaled $33.6 million (net of related tax benefits of $0.4 million). At December 31, 2019, the reserves for uncertain tax positions totaled $159.7 million (net of related tax benefits of $0.4 million). It is reasonably possible that our existing liabilities related to our reserve for uncertain tax positions may fluctuate in the next 12 months primarily due to the expiration of statutes of limitation. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) into law. The CARES Act makes significant changes to various areas of US federal income tax law by, among other things, allowing a five-year carryback period for 2018, 2019 and 2020 net operating losses (“NOL”), accelerating the realization of remaining alternative minimum tax credits, and increasing the interest expense limitation under Section 163(j) for years 2019 and 2020. The Company recognized an income tax benefit of $42.6 million as a result of the application of the CARES Act in its first quarter of 2020 financial statements in accordance with ASC Topic 740, Income Taxes. Such $42.6 million tax benefit is comprised primarily of a current income tax receivable of $151.4 million, partially offset by non-cash deferred tax expense of $107.6 million related to NOL utilization. In July 2020, we received $134.0 million of the income tax receivable related to the CARES Act, along with an additional receipt of $4.4 million of related interest. At June 30, 2020, in addition to the aforementioned CARES Act impact, our income tax provision also included a tax benefit of $4.6 million related to a non-US reserve release following a statute expiration, a tax benefit of $111.9 million following the closure of the examination of our US tax returns for the taxable years ended December, 31, 2012, 2013, 2014, 2015, 2016, and 2017 and a non-cash deferred tax benefit of $95.6 million related to the impairment of two rigs and certain capital spares. At June 30, 2020, we also recorded a non-US reserve release of $22.2 million and an $11.8 million US reserve increase, with offsetting balance sheet amounts related to these reserve releases which resulted in a zero net impact to our income tax provision. At June 30, 2019, our income tax provision included a net tax benefit of $33.7 million following the effective settlement of the examination of our US tax returns for the taxable years ended December 31, 2010 and 2011. As a result of the Company’s substantial doubt about its ability to continue as a going concern, we have re-evaluated assumptions we previously made with respect to the realization of our deferred tax assets and our ability to assert permanent reinvestment of the earnings and outside book/tax basis differences in our subsidiaries. We determined that no changes to our existing assumptions and assertions are warranted in the current period, but we will continue to monitor such assumptions and assertions in subsequent quarters to determine whether or not changes to the tax provision are warranted.
|
Employee Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefit Plans | Note 11— Employee Benefit Plans Pension costs include the following components for the three and six months ended June 30, 2020 and 2019:
During the three and six months ended June 30, 2020 and 2019, we made no contributions to our pension plans. Effective December 31, 2016, employees and alternate payees accrue no future benefits under the US plans and, as such, Noble recognized no service costs with the plans for the three and six months ended June 30, 2020 and 2019.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | Note 12— Fair Value of Financial Instruments The following tables present the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:
Our cash, cash equivalents and restricted cash, accounts receivable, marketable securities and accounts payable are by their nature short-term. As a result, the carrying values included in our Condensed Consolidated Balance Sheets approximate fair value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Note 13— Commitments and Contingencies Transocean Ltd. In January 2017, a subsidiary of Transocean Ltd. (“Transocean”) filed suit against us and certain of our subsidiaries seeking damages for patent infringement in a Texas federal court. The suit claims that five of our newbuild rigs that operated in the US Gulf of Mexico violated Transocean patents relating to what is generally referred to as dual-activity drilling, and Transocean is seeking royalties of a $10.0 million fee and a five percent license fee for the pertinent period of operation for each vessel and damages for the breach of contract alleged in February 2019, regarding a 2007 settlement agreement that we entered into with Transocean relating to patent claims in respect of another Noble rig. We were aware of the patents when we constructed the rigs. The patents are now expired in the United States and most other countries. While there is inherent risk in litigation, we do not believe that our rigs infringe the Transocean patents. We also do not believe there has been any breach of the 2007 settlement agreement. The Company’s current estimated loss related to the final disposition of this matter is $7.5 million, which is reflected as a current liability as of June 30, 2020. The trial date had been rescheduled for November 2020, but the case is now stayed as a result of the filing of the Chapter 11 Cases. We continue to defend ourselves vigorously against this claim. Paragon Offshore On August 1, 2014, Noble-UK completed the separation and spin-off of a majority of its standard specification offshore drilling business (the “Spin-off”) through a pro rata distribution of all of the ordinary shares of its wholly-owned subsidiary, Paragon Offshore plc (“Paragon Offshore”), to the holders of Noble’s ordinary shares. In February 2016, Paragon Offshore sought approval of a pre-negotiated plan of reorganization (the “Prior Plan”) by filing for voluntary relief under Chapter 11 of the Bankruptcy Code. As part of the Prior Plan, we entered into a settlement agreement with Paragon Offshore (the “Settlement Agreement”). The Prior Plan was rejected by the bankruptcy court in October 2016. In April 2017, Paragon Offshore filed a revised plan of reorganization (the “New Plan”) in its bankruptcy proceeding. Under the New Plan, Paragon Offshore no longer needed the Mexican tax bonding that Noble-UK was required to provide under the Settlement Agreement. Consequently, Paragon Offshore abandoned the Settlement Agreement as part of the New Plan, and the Settlement Agreement was terminated at the time of the filing of the New Plan. On May 2, 2017, Paragon Offshore announced that it had reached an agreement in principle with both its secured and unsecured creditors to revise the New Plan to create and fund a litigation trust to pursue litigation against us. On June 7, 2017, the revised New Plan was approved by the bankruptcy court, and Paragon Offshore emerged from bankruptcy on July 18, 2017. On December 15, 2017, the litigation trust filed claims relating to the Spin-off against us and certain of our current and former officers and directors in the Delaware bankruptcy court that heard Paragon Offshore’s bankruptcy, and the litigation trust filed an amended complaint in October 2019. The amended complaint alleges claims of actual and constructive fraudulent conveyance, unjust enrichment and recharacterization of intercompany notes as equity claims against Noble and claims of breach of fiduciary duty and aiding and abetting breach of fiduciary duty against the officer and director defendants. The litigation trust is seeking damages of (i) approximately $1.7 billion from the Company, an amount equal to the amount borrowed by Paragon Offshore immediately prior to the Spin-off, (ii) an additional approximately $935 million relating to the transfer of intercompany receivables and notes from a Paragon subsidiary to a Noble subsidiary prior to the Spin-off (bringing the total claimed damages to approximately $2.6 billion), and (iii) unspecified amounts in respect of the claims against the officer and director defendants, all of whom have indemnification agreements with us. A trial date had been set for September 2020, but as a result of the filing of the Chapter 11 Cases, the claims against the corporate defendants have been stayed, and we have asked the court to stay the proceeding against the individual officer and director defendants. We expect the litigation trust to contest the stay with respect to both groups, and we expect the court to make a decision regarding the stay in the third quarter of 2020. We believe that Paragon Offshore, at the time of the Spin-off, was properly funded, solvent and had appropriate liquidity and that the claims brought by the litigation trust are without merit. However, the Company continually assesses potential outcomes, including the probability of the parties ultimately resolving the matter through settlement in light of various factors, including given the complex factual issues involved, the uncertainty and risk inherent in this type of litigation, the time commitment and distraction of our organization, the potential effect of the ongoing litigation and uncertainty on our business, and the substantial expense incurred in litigating the claims. As such, the Company’s current estimated loss related to the final disposition of this matter is $146.5 million, which is reflected as a current liability as of June 30, 2020. Leading up to the filing of the Chapter 11 Cases, we were in discussions with the litigation trust and underwriters in an attempt to settle the claims. As a result of those discussions, the Company recorded a $46.5 million charge during the three and six months ended June 30, 2020 as a general and administrative expense. The Company recorded $100.0 million as a general and administrative expense for the three and six months ended June 30, 2019. As pre-trial matters progress, the Company’s estimated loss could change from time to time, and any such change individually or in the aggregate could be material. There is inherent risk and substantial expense in litigation, and the amount of damages that the plaintiff is seeking is substantial. If any of the litigation trust’s claims are successful, or if we elect to settle any claims (in part to reduce or eliminate the ongoing cost of defending the litigation and eliminate any risk of a larger judgment against us), any damages or other amounts we would be required to or agree to pay in excess of the amount we recognized at June 30, 2020, could have a material adverse effect on our business, financial condition, results of operations and cash flows, including impeding our ability to meet ongoing financial obligations or to continue as a going concern. Given the risks and considerations discussed above, we cannot predict with any degree of certainty what the outcome of the litigation may be. Furthermore, as discussed below, we cannot predict the amount of insurance coverage, if any, that we may have if we were to settle or be found liable in the litigation. We have directors’ and officers’ indemnification coverage for the officers and directors who have been sued by the litigation trust. The insurers have accepted coverage for the director and officer claims and we are continuing to discuss with them the scope of their reimbursement of litigation expenses. In addition, at the time of the Spin-off, we had entity coverage, or “Side C” coverage, which was meant to cover certain litigation claims up to the coverage limit of $150.0 million, including litigation expenses. We have made a claim for coverage of the litigation trust’s claims against Noble under such entity insurance. The insurers have rejected coverage for these claims. However, we intend to pursue coverage should the litigation be concluded adversely to us or should we settle the litigation without the participation of the insurers. We cannot predict the amount of claims and expenses we may incur, pay or settle in the Paragon Offshore litigation that such insurance will cover, if any. Prior to the completion of the Spin-off, Noble-UK and Paragon Offshore entered into a series of agreements to effect the separation and Spin-off and govern the relationship between the parties after the Spin-off (the “Separation Agreements”), including a Master Separation Agreement (the “MSA”) and a Tax Sharing Agreement (the “TSA”). As part of its final bankruptcy plan, Paragon Offshore rejected the Separation Agreements. Accordingly, the indemnity obligations that Paragon Offshore potentially would have owed us under the Separation Agreements have now terminated, including indemnities arising under the MSA and the TSA in respect of obligations related to Paragon Offshore’s business that were incurred through Noble-retained entities prior to the Spin-off. Likewise, any potential indemnity obligations that we would have owed Paragon Offshore under the Separation Agreements, including those under the MSA and the TSA in respect of Noble-UK’s business that was conducted prior to the Spin-off through Paragon Offshore-retained entities, are now also extinguished. In the absence of the Separation Agreements, liabilities relating to the respective parties will be borne by the owner of the legal entity or asset at issue and neither party will look to an allocation based on the historic relationship of an entity or asset to one of the party’s business, as had been the case under the Separation Agreements. The rejection and ultimate termination of the indemnity and related obligations under the Separation Agreements resulted in a number of accounting charges and benefits during the year ended December 31, 2017, and such termination may continue to affect us in the future as liabilities arise for which we would have been indemnified by Paragon Offshore or would have had to indemnify Paragon Offshore. We do not expect that, overall, the rejection of the Separation Agreements by Paragon Offshore will have a material adverse effect on our financial condition or liquidity. However, any loss we experience with respect to which we would have been able to secure indemnification from Paragon Offshore under one or more of the Separation Agreements could have an adverse impact on our results of operations in any period, which impact may be material depending on our results of operations during this down-cycle. During the six months ended June 30, 2019, we recognized charges of $3.8 million recorded in “Net loss from discontinued operations, net of tax” on our Condensed Consolidated Statement of Operations relating to settlement of Mexico customs audits from rigs included in the Spin-off. Tax matters The Internal Revenue Service (“IRS”) has completed its examination procedures, including all appeals and administrative reviews, for the taxable years ended December 31, 2012, 2013, 2014, 2015, 2016 and 2017. In May 2020, the IRS examination team notified us that it was no longer proposing any adjustments with respect to our tax reporting for the taxable years ended December 31, 2012, 2013, 2014, 2015, 2016 and 2017. Audit claims of approximately $61.3 million attributable to income and other business taxes were assessed against Noble entities in Mexico related to tax years 2007, 2009 and 2010 and in Australia related to tax years 2013 to 2016. We intend to vigorously defend our reported positions and believe the ultimate resolution of the audit claims will not have a material adverse effect on our condensed consolidated financial statements. We operate in a number of countries throughout the world and our tax returns filed in those jurisdictions are subject to review and examination by tax authorities within those jurisdictions. We recognize uncertain tax positions that we believe have a greater than 50 percent likelihood of being sustained upon challenge by a tax authority. We cannot predict or provide assurance as to the ultimate outcome of any existing or future assessments. Other contingencies We have entered into agreements with certain of our executive officers, as well as certain other employees. These agreements become effective upon a change of control of Noble-UK (within the meaning set forth in the agreements) or a termination of employment in connection with or in anticipation of a change of control and remain effective for three years thereafter. These agreements provide for compensation and certain other benefits under such circumstances. We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, including personal injury claims, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.
|
Supplemental Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information | Note 14— Supplemental Financial Information Condensed Consolidated Balance Sheets Information Our restricted cash balance as of both June 30, 2020 and December 31, 2019 consisted of $1.3 million and is included in “Prepaid expenses and other current assets.” Condensed Consolidated Statements of Cash Flows Information Operating cash activities The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:
Non-cash investing and financing activities Additions to property and equipment, at cost for which we had accrued a corresponding liability in accounts payable as of June 30, 2020 and December 31, 2019 were $32.1 million and $36.0 million, respectively. Additions to property and equipment, at cost for which we had accrued a corresponding liability in accounts payable as of June 30, 2019 and December 31, 2018 were $46.8 million and $52.1 million, respectively. In February 2019, we entered into the $53.6 million 2019 Seller Loan to finance a portion of the purchase price for the Noble Joe Knight. See “Note 6— Debt” for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Note 15— Subsequent Events Interest Payment Under 2024 Notes On July 15, 2020, we announced that we elected not to make the semiannual interest payment due in respect of our 2024 Notes, which was due on July 15, 2020. Under the terms of the indenture governing the 2024 Notes, we had a 30-day grace period to make the payment. Nonpayment of the interest due on the due date was not an event of default but would have become an event of default if the payment was not made within the 30-day grace period, which would have permitted holders of 25% of the outstanding principal amount of the 2024 Notes to declare the 2024 Notes immediately due and payable. However, the subsequent filing of the Chapter 11 Cases on the Petition Date constituted an event of default. Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code On the Petition Date, the Debtors filed the Chapter 11 Cases in the Bankruptcy Court seeking relief under Chapter 11 of the Bankruptcy Code. The Chapter 11 Cases are being jointly administered under the caption In re Noble Corporation plc, et. al. Case No. 20-33826. See “Note 1— Organization and Basis of Presentation” and “Note 6— Debt” for additional information. Delisting of Our Common Stock from the NYSE In connection with the Chapter 11 Cases, on July 30, 2020, the New York Stock Exchange (“NYSE”) notified Noble-UK that it would suspend trading in Noble-UK’s ordinary shares on the Petition Date and that it would commence proceedings to delist Noble-UK’s ordinary shares because Noble-UK is no longer suitable for listing pursuant to Section 802.01D of the NYSE continued listing standards. On the Petition Date, the NYSE suspended trading in Noble-UK’s ordinary shares at the market opening. Since August 4, 2020, Noble-UK’s ordinary shares have been quoted on the OTC Pink Open Market under the symbol “NEBLQ.” The Company cannot provide any assurance that Noble-UK’s ordinary shares will continue to trade on this market or whether quotes for Noble-UK’s ordinary shares will continue on this market in the future. The Company informed the NYSE that it does not intend to take any further action to appeal the NYSE’s decision to delist Noble-UK’s ordinary shares. Therefore, it is expected that Noble-UK’s ordinary shares will be delisted after the completion of the NYSE’s application to the SEC to delist Noble-UK’s ordinary shares. The Company does not expect the NYSE delisting of Noble-UK’s ordinary shares to adversely affect the Company’s business operations or the pending restructuring under the Chapter 11 Cases, and delisting Noble-UK’s ordinary shares does not change Noble-UK’s reporting requirements under the SEC’s rules and regulations.
|
Organization and Basis of Presentation (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Consolidation | The accompanying unaudited condensed consolidated financial statements of Noble-UK and Noble-Cayman have been prepared pursuant to the rules and regulations of the US Securities and Exchange Commission as they pertain to Quarterly Reports on Form 10-Q. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements are prepared on a going concern basis and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a recurring nature. The December 31, 2019 Condensed Consolidated Balance Sheets presented herein are derived from the December 31, 2019 audited consolidated financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019, filed by both Noble-UK and Noble-Cayman. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.
|
| Accounting Pronouncements | Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 (Topic 326, “Measurement of Credit Losses on Financial Instruments”), which requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income, including loans, debt securities, trade receivables, net investments in leases and available-for-sale debt securities. This guidance is effective for annual and interim periods beginning after December 15, 2019. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We adopted this standard effective January 1, 2020 and our adoption did not have a material effect on our condensed consolidated financial statements. Issued Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, which amends Accounting Standards Codification (“ASC”) Subtopic 740, “Income Taxes.” This update simplifies the accounting for income taxes by removing certain exceptions to general principles. The amendment is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, and is required to be adopted on a retrospective basis for all periods presented. We do not expect the adoption of this guidance to materially affect our condensed consolidated financial statements. With the exception of the updated standards discussed above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to our condensed consolidated financial statements.
|
| Contract Balances | Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets.
|
Income (Loss) Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Computation of Basic and Diluted Earnings Per Share for Noble-UK | The following table presents the computation of basic and diluted loss per share for Noble-UK:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment, at Cost | Property and equipment, at cost consisted of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated Fair Value of Our Long-Term Debt, not Including Effect of Unamortized Debt Issuance Costs | The following table presents the carrying value, net of unamortized debt issuance costs and discounts, and the estimated fair value of our total debt, not including the effect of unamortized debt issuance costs, respectively:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Accumulated Balances for Components of AOCI | The following table presents the changes in the accumulated balances for each component of “Accumulated other comprehensive income (loss)” (“AOCI”) for the three and six months ended June 30, 2020 and 2019. All amounts within the table are shown net of tax.
(1) Defined benefit pension items relate to actuarial changes and the amortization of prior service costs. Reclassifications from AOCI are recognized as expense on our Condensed Consolidated Statements of Operations through “Other income (expense).” See “Note 11— Employee Benefit Plans” for additional information.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Assets and Contract Liabilities | The following table provides information about contract assets and contract liabilities from contracts with customers:
Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the six months ended June 30, 2020 and 2019 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations, by rig type, as of June 30, 2020: (1) Represents a six-month period beginning July 1, 2020
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue by Rig Types | The following table provides information about contract drilling revenue by rig types:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Pension Costs | Pension costs include the following components for the three and six months ended June 30, 2020 and 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying Amount and Estimated Fair Value of Financial Instruments | The following tables present the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effect of Changes in Other Assets and Liabilities on Cash Flows from Operating Activities | The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentation (Details) |
6 Months Ended | ||
|---|---|---|---|
|
Jun. 30, 2020
USD ($)
vessel
segment
|
Apr. 23, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
| Debt Instrument [Line Items] | |||
| Number of drilling rigs (vessel) | vessel | 24 | ||
| Number of floaters (vessel) | vessel | 12 | ||
| Number of jackups (vessel) | vessel | 12 | ||
| Number of reportable segments | segment | 1 | ||
| 2017 Credit Facility matures January 2023 | |||
| Debt Instrument [Line Items] | |||
| Maximum borrowing capacity under credit facilities | $ | $ 1,300,000,000 | $ 1,500,000,000 | |
| Line of credit | 2017 Credit Facility matures January 2023 | |||
| Debt Instrument [Line Items] | |||
| Maximum borrowing capacity under credit facilities | $ | $ 1,300,000,000 | $ 3,400,000,000 | |
| Borrowings outstanding or letters of credit issued | $ | $ 545,000,000.0 |
Consolidated Joint Ventures (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Dec. 03, 2019 |
Jun. 30, 2019 |
Jun. 30, 2019 |
|
| Schedule Of Equity Method Investments [Line Items] | |||
| Percentage attributable to noncontrolling interests | 50.00% | 50.00% | |
| Bully Joint Venture | |||
| Schedule Of Equity Method Investments [Line Items] | |||
| Equity interest | 50.00% | ||
| Payments to to acquire interest | $ 106.7 | ||
| Dividends approved | $ 25.0 | $ 35.1 | |
| Subsidiary of Shell | |||
| Schedule Of Equity Method Investments [Line Items] | |||
| Proceeds from contract termination | $ 166.9 |
Income (Loss) Per Share - Additional Information (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Shares outstanding and trading (in shares) | 251,041,000 | 251,041,000 | 249,200,000 | |
| Additional shares authorized for issuance (in shares) | 8,700,000 | |||
| Current nominal value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
| Number of shares allotted (in shares) | 0 | |||
| Number of shares repurchased (in shares) | 0 | 0 | ||
| Noble-UK | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Shares outstanding and trading (in shares) | 251,000,000.0 | 251,000,000.0 | 249,200,000 | |
| Equity option | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Shares excluded from the diluted net income per share (in shares) | 11,600,000 | 11,000,000 | 13,400,000 | |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
| Beginning Balance | $ 2,596,532 | $ 3,658,972 | $ 4,583,808 | $ 4,654,574 | $ 3,658,972 | $ 4,654,574 |
| Amounts reclassified from AOCI | 568 | 568 | 549 | 550 | ||
| Other comprehensive income (loss), net | 29 | (1,568) | 143 | 1,058 | (1,539) | 1,201 |
| Ending Balance | 2,556,970 | 2,596,532 | 4,427,749 | 4,583,808 | 2,556,970 | 4,427,749 |
| Other comprehensive income (loss) before reclassifications | (539) | (2,136) | (406) | 508 | ||
| Defined Benefit Pension Items | ||||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
| Beginning Balance | (40,067) | (40,635) | (38,508) | (39,058) | (40,635) | (39,058) |
| Amounts reclassified from AOCI | 568 | 568 | 549 | 550 | ||
| Other comprehensive income (loss), net | 568 | 568 | 549 | 550 | ||
| Ending Balance | (39,499) | (40,067) | (37,959) | (38,508) | (39,499) | (37,959) |
| Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
| Foreign Currency Items | ||||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
| Beginning Balance | (19,890) | (17,754) | (17,506) | (18,014) | (17,754) | (18,014) |
| Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||
| Other comprehensive income (loss), net | (539) | (2,136) | (406) | 508 | ||
| Ending Balance | (20,429) | (19,890) | (17,912) | (17,506) | (20,429) | (17,912) |
| Other comprehensive income (loss) before reclassifications | (539) | (2,136) | (406) | 508 | ||
| Total | ||||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
| Beginning Balance | (59,957) | (58,389) | (56,014) | (57,072) | (58,389) | (57,072) |
| Other comprehensive income (loss), net | 29 | 143 | (1,539) | 1,201 | ||
| Ending Balance | $ (59,928) | $ (59,957) | $ (55,871) | $ (56,014) | $ (59,928) | $ (55,871) |
Revenue and Customers - Additional Information (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Revenue from Contract with Customer [Abstract] | |
| Payment term | 30 days |
Revenue and Customers - Receivables, Contract Assets, and Contract Liabilities with Customers (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|---|---|
| Revenue from Contract with Customer [Abstract] | ||||
| Current contract assets | $ 13,189 | $ 21,292 | ||
| Noncurrent contract assets | 6,154 | 9,508 | ||
| Total contract assets | 19,343 | 30,800 | $ 40,119 | $ 47,664 |
| Current contract liabilities (deferred revenue) | (34,370) | (34,196) | ||
| Noncurrent contract liabilities (deferred revenue) | (29,006) | (30,859) | ||
| Total contract liabilities | $ (63,376) | $ (65,055) | $ (77,803) | $ (80,753) |
Revenue and Customers - Significant Changes in Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
| Contract assets, beginning balance | $ 30,800 | $ 47,664 |
| Contract liabilities, beginning balance | (65,055) | (80,753) |
| Amortization of deferred costs | (16,253) | (16,811) |
| Additions to deferred costs | 4,796 | 9,266 |
| Amortization of deferred revenue | 32,071 | 28,907 |
| Additions to deferred revenue | (30,392) | (25,957) |
| Total | (11,457) | (7,545) |
| Total | 1,679 | 2,950 |
| Contract assets, ending balance | 19,343 | 40,119 |
| Contract liabilities, ending balance | $ (63,376) | $ (77,803) |
Revenue and Customers - Performance Obligations (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
|---|---|
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Unsatisfied performance obligations | $ 63,376 |
| Floaters | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Unsatisfied performance obligations | 47,789 |
| Jackups | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Unsatisfied performance obligations | $ 15,587 |
Revenue and Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from contract with customer | $ 237,918 | $ 292,936 | $ 519,229 | $ 575,824 |
| Contract drilling services | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from contract with customer | 220,141 | 274,817 | 487,505 | 545,318 |
| Floaters | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from contract with customer | 105,458 | 144,079 | 247,487 | 297,233 |
| Jackups | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from contract with customer | $ 114,683 | $ 130,738 | $ 240,018 | $ 248,085 |
Loss on Impairment (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Property, Plant and Equipment [Line Items] | ||||
| Loss on impairment | $ 0 | $ 0 | $ 1,119,517,000 | $ 0 |
| Capital Spare Equipment | ||||
| Property, Plant and Equipment [Line Items] | ||||
| Loss on impairment | 5,500,000 | |||
| Noble Bully I, Noble Bully II, Noble Danny Adkins and Noble Jim Day | Drillships | ||||
| Property, Plant and Equipment [Line Items] | ||||
| Loss on impairment | $ 1,100,000,000 | |||
Income Taxes (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
|
Mar. 27, 2020
USD ($)
|
Jul. 31, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
rig
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
| Income Tax Contingency [Line Items] | |||||
| Reserves for uncertain tax positions net | $ 33,600 | $ 159,700 | |||
| Related tax benefits | $ 400 | 400 | |||
| Operational period | 12 months | ||||
| Income tax benefit from CARES Act | $ 42,600 | ||||
| Taxes receivable | 151,400 | $ 193,116 | $ 59,771 | ||
| Deferred income taxes | $ 107,600 | (6,846) | $ (4,741) | ||
| Non-US reserve release following statute limitation | 4,600 | ||||
| Tax benefit from closure of examination | 111,900 | ||||
| Non-cash deferred tax benefit from impairment charges | $ 95,600 | ||||
| Number of impaired rigs | rig | 2 | ||||
| Tax settlement benefit | $ 33,700 | ||||
| Non-US | |||||
| Income Tax Contingency [Line Items] | |||||
| Reserve increase (decrease) | (22,200) | ||||
| US | |||||
| Income Tax Contingency [Line Items] | |||||
| Reserve increase (decrease) | $ 11,800 | ||||
| Subsequent Event | |||||
| Income Tax Contingency [Line Items] | |||||
| Proceeds from income tax receivable | $ 134,000 | ||||
| Proceeds from tax interest | $ 4,400 | ||||
Employee Benefit Plans (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Employer contributions | $ 0 | $ 0 | $ 0 | $ 0 |
| Service cost | 0 | 0 | 0 | 0 |
| Non-US | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Interest cost | 430,000 | 431,000 | 863,000 | 876,000 |
| Return on plan assets | (494,000) | (614,000) | (993,000) | (1,248,000) |
| Recognized net actuarial loss | 2,000 | 2,000 | 4,000 | 5,000 |
| Net pension benefit cost (gain) | (62,000) | (181,000) | (126,000) | (367,000) |
| US | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Interest cost | 1,892,000 | 2,178,000 | 3,784,000 | 4,356,000 |
| Return on plan assets | (2,919,000) | (2,579,000) | (5,838,000) | (5,157,000) |
| Recognized net actuarial loss | 716,000 | 693,000 | 1,432,000 | 1,385,000 |
| Net pension benefit cost (gain) | $ (311,000) | $ 292,000 | $ (622,000) | $ 584,000 |
Fair Value of Financial Instruments (Details) - Marketable securities - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Quoted Prices in Active Markets (Level 1) | ||
| Assets | ||
| Marketable securities | $ 10,511 | $ 10,433 |
| Significant Other Observable Inputs (Level 2) | ||
| Assets | ||
| Marketable securities | 0 | 0 |
| Significant Unobservable Inputs (Level 3) | ||
| Assets | ||
| Marketable securities | 0 | 0 |
| Reported Value Measurement | ||
| Assets | ||
| Marketable securities | $ 10,511 | $ 10,433 |
Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | |||||
|---|---|---|---|---|---|---|
Feb. 28, 2019 |
Feb. 28, 2019 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
| Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
| Restricted cash | $ 1.3 | $ 1.3 | ||||
| Capital expenditures incurred but not yet paid | $ 32.1 | $ 36.0 | $ 46.8 | $ 52.1 | ||
| 2019 Seller Loan | ||||||
| Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
| Financed value | $ 53.6 | $ 53.6 |
Supplemental Financial Information - Effect of Changes in Other Assets and Liabilities on Cash Flows (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Operating Capital [Line Items] | ||
| Total net change in assets and liabilities | $ 22,442 | $ (50,161) |
| Noble-UK | ||
| Operating Capital [Line Items] | ||
| Accounts receivable | 34,693 | (21,767) |
| Other current assets | 10,017 | 3,194 |
| Other assets | 3,045 | 5,166 |
| Accounts payable | (9,713) | (3,197) |
| Other current liabilities | (8,532) | (27,575) |
| Other liabilities | (7,068) | (5,982) |
| Total net change in assets and liabilities | 22,442 | (50,161) |
| Noble-Cayman | ||
| Operating Capital [Line Items] | ||
| Accounts receivable | 34,693 | (21,767) |
| Other current assets | 14,387 | 2,605 |
| Other assets | 2,292 | 6,582 |
| Accounts payable | (11,816) | (3,105) |
| Other current liabilities | (8,563) | (27,422) |
| Other liabilities | (7,068) | (5,982) |
| Total net change in assets and liabilities | $ 23,925 | $ (49,089) |
Subsequent Events (Details) - Subsequent Event - Senior Notes - 7.75% Senior Notes due January 2024 |
Jul. 15, 2020 |
|---|---|
| Subsequent Event [Line Items] | |
| Grace period | 30 days |
| Percentage of principal payment due at end of term | 25.00% |