Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations

Discontinued Operations

Note 8—Discontinued Operations

Standard jackup and swamp barge contract drilling services—In September 2012, in connection with our efforts to dispose of non‑strategic assets and to reduce our exposure to low‑specification drilling units, we committed to a plan to discontinue operations associated with the standard jackup and swamp barge asset groups, components of our contract drilling services operating segment.  In November 2012, we completed the sale of 38 drilling units, and we agreed to operate the standard jackups on behalf of the buyer for a period of time that extended to January 2015.  In the year ended December 31, 2014, we recognized operating revenues of $166 million, operating costs and related losses of $160 million, resulting in a loss of $8 million ($0.02 per diluted share), net of tax expense of $14 million, associated with our discontinued drilling services operations.

Drilling management services—In February 2014, in connection with our efforts to discontinue non‑strategic operations, we completed the sale of a subsidiary that performed drilling management services in the North Sea.  In the year ended December 31, 2014, we received net cash proceeds of $10 million and recognized a net loss of $12 million ($0.03 per diluted share), which had no tax effect, associated with the sale of the drilling management services business.  We agreed to provide a $15 million working capital line of credit to the buyer through March 2016.  In May 2015, the buyer made a cash payment of $15 million to repay the borrowings and terminated the line of credit.