Information about Noble-Cayman (Tables)

12 Months Ended

Dec. 31, 2016

Guarantees [Abstract]

Guarantor Obligations

Noble-Cayman, or one or more wholly-owned subsidiaries of Noble-Cayman, are a co-issuer or full and unconditional guarantor or otherwise obligated as of December 31, 2016 as follows:

	Issuer
Notes	(Co-Issuer(s))	Guarantor(s)
$300 million 2.50% Senior Notes due 2017	NHIL	Noble-Cayman
$250 million 5.25% Senior Notes due 2018	NHIL	Noble-Cayman
$202 million 7.50% Senior Notes due 2019	NHC	Noble-Cayman
	NDH
	Noble Drilling Services 6 LLC (“NDS6”)
$168 million 4.90% Senior Notes due 2020	NHIL	Noble-Cayman
$209 million 4.625% Senior Notes due 2021	NHIL	Noble-Cayman
$126 million 3.95% Senior Notes due 2022	NHIL	Noble-Cayman
$1 billion 7.75% Senior Notes due 2024	NHIL	Noble-Cayman
$450 million 7.20% Senior Notes due 2025	NHIL	Noble-Cayman
$400 million 6.20% Senior Notes due 2040	NHIL	Noble-Cayman
$400 million 6.05% Senior Notes due 2041	NHIL	Noble-Cayman
$500 million 5.25% Senior Notes due 2042	NHIL	Noble-Cayman
$400 million 8.20% Senior Notes due 2045	NHIL	Noble-Cayman

Condensed Consolidating Balance Sheet

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016

(in thousands)

	Noble- Cayman		NHC		NDH			NHIL		NDS6		Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	2,537	$	—	$	10,855		$	—	$	—	$	640,441		$	—		$	653,833
Accounts receivable	—		—		33,162			—		—		285,990			—			319,152
Taxes receivable	—		21,428		—			—		—		34,052			—			55,480
Short-term notes receivable from affiliates	—		—		243,915			—		1,349,708		52,611			(1,646,234		)	—
Accounts receivable from affiliates	361,313		—		137,476			67,560		85,274		3,038,658			(3,690,281		)	—
Prepaid expenses and other current assets	270		—		1,611			—		—		86,868						88,749
Total current assets	364,120		21,428		427,019			67,560		1,434,982		4,138,620			(5,336,515		)	1,117,214
Property and equipment, at cost	—		—		2,376,862			—		—		9,988,026			—			12,364,888
Accumulated depreciation	—		—		(428,308		)	—		—		(1,874,632		)	—			(2,302,940		)
Property and equipment, net	—		—		1,948,554			—		—		8,113,394			—			10,061,948
Notes receivable from affiliates	3,304,672		—		112,706			69,564		5,000		1,798,614			(5,290,556		)	—
Investments in affiliates	2,848,855		2,007,016		1,411,874			8,369,728		6,129,082		—			(20,766,555		)	—
Other assets	4,292		—		5,687			—		—		168,573			—			178,552
Total assets	$	6,521,939	$	2,028,444	$	3,905,840		$	8,506,852	$	7,569,064	$	14,219,201		$	(31,393,626	)	$	11,357,714
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	—	$	171,925	$	—		$	—	$	—	$	1,474,309		$	(1,646,234	)	$	—
Current maturities of long-term debt	—		—		—			299,882		—		—			—			299,882
Accounts payable	—		—		4,228			—		—		103,640			—			107,868
Accrued payroll and related costs	—		—		4,882			—		—		43,437			—			48,319
Accounts payable to affiliates	818,737		111,801		1,995,788			123,642		—		640,313			(3,690,281		)	—
Taxes payable	—		—		—			—		—		46,561			—			46,561
Interest payable	48		—		—			56,839		4,412		—			—			61,299
Other current liabilities	12		—		4,296			—		—		63,004			—			67,312
Total current liabilities	818,797		283,726		2,009,194			480,363		4,412		2,371,264			(5,336,515		)	631,241
Long-term debt	—		—		—			3,838,807		201,422		—			—			4,040,229
Notes payable to affiliates	—		700,000		467,139			744,181		—		3,379,236			(5,290,556		)	—
Deferred income taxes	—		—		534			—		—		1,550			—			2,084
Other liabilities	19,929		—		24,035			—		—		248,219			—			292,183
Total liabilities	838,726		983,726		2,500,902			5,063,351		205,834		6,000,269			(10,627,071		)	4,965,737
Commitments and contingencies
Total shareholder equity	5,683,213		1,044,718		1,404,938			3,443,501		7,363,230		7,106,323			(20,362,710		)	5,683,213
Noncontrolling interests	—		—		—			—		—		1,112,609			(403,845		)	708,764
Total equity	5,683,213		1,044,718		1,404,938			3,443,501		7,363,230		8,218,932			(20,766,555		)	6,391,977
Total liabilities and equity	$	6,521,939	$	2,028,444	$	3,905,840		$	8,506,852	$	7,569,064	$	14,219,201		$	(31,393,626	)	$	11,357,714

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015

(in thousands)

	Noble- Cayman		NHC		NDH			NHIL		NDS6		Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	1,627	$	—	$	2,101		$	—	$	—	$	508,067		$	—		$	511,795
Accounts receivable	—		—		9,381			—		—		489,550			—			498,931
Taxes receivable	—		12,124		27			—		—		43,291			—			55,442
Short-term notes receivable from affiliates	—		—		119,476			—		—		171,925			(291,401		)	—
Accounts receivable from affiliates	626,305		451,201		128,457			811,785		67,684		3,445,590			(5,531,022		)	—
Prepaid expenses and other current assets	246		—		1,696			—		—		166,527			—			168,469
Total current assets	628,178		463,325		261,138			811,785		67,684		4,824,950			(5,822,423		)	1,234,637
Property and equipment, at cost	—		—		1,877,520			—		—		12,177,038			—			14,054,558
Accumulated depreciation	—		—		(344,591		)	—		—		(2,227,740		)	—			(2,572,331		)
Property and equipment, net	—		—		1,532,929			—		—		9,949,298			—			11,482,227
Notes receivable from affiliates	3,304,652		—		236,921			1,587,927		5,000		2,435,154			(7,569,654		)	—
Investments in affiliates	5,159,064		2,174,480		3,001,327			9,752,912		7,438,397		—			(27,526,180		)	—
Other assets	5,954		—		7,496			—		—		118,869			—			132,319
Total assets	$	9,097,848	$	2,637,805	$	5,039,811		$	12,152,624	$	7,511,081	$	17,328,271		$	(40,918,257	)	$	12,849,183
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables from affiliates	$	—	$	171,925	$	—		$	—	$	—	$	119,476		$	(291,401	)	$	—
Current maturities of long-term debt	—		—		—			299,924		—		—			—			299,924
Accounts payable	—		—		10,676			—		—		210,401			—			221,077
Accrued payroll and related costs	—		—		6,584			—		—		74,780			—			81,364
Accounts payable to affiliates	868,046		60,100		2,440,965			96,543		6,426		2,058,942			(5,531,022		)	—
Taxes payable	—		917		—			—		—		87,191			—			88,108
Interest payable	—		—		—			68,549		4,412		—			—			72,961
Other current liabilities	40		—		4,108			—		—		92,183			—			96,331
Total current liabilities	868,086		232,942		2,462,333			465,016		10,838		2,642,973			(5,822,423		)	859,765
Long-term debt	—		—		—			3,961,338		201,300		—			—			4,162,638
Notes payable to affiliates	1,518,363		—		461,379			2,086,480		124,216		3,379,216			(7,569,654		)	—
Deferred income taxes	—		—		1,529			—		—		91,268			—			92,797
Other liabilities	19,929		—		25,312			—		—		274,271			—			319,512
Total liabilities	2,406,378		232,942		2,950,553			6,512,834		336,354		6,387,728			(13,392,077		)	5,434,712
Commitments and contingencies
Total shareholder equity	6,691,470		2,404,863		2,089,258			5,639,790		7,174,727		9,781,284			(27,089,922		)	6,691,470
Noncontrolling interests	—		—		—			—		—		1,159,259			(436,258		)	723,001
Total equity	6,691,470		2,404,863		2,089,258			5,639,790		7,174,727		10,940,543			(27,526,180		)	7,414,471
Total liabilities and equity	$	9,097,848	$	2,637,805	$	5,039,811		$	12,152,624	$	7,511,081	$	17,328,271		$	(40,918,257	)	$	12,849,183

Condensed Consolidating Statement of Income

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2016

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	250,049		$	—		$	—		$	2,086,848		$	(94,697	)	$	2,242,200
Reimbursables	—			—			9,190			—			—			50,242			—			59,432
Other	—			—			—			—			—			1,133			—			1,133
Total operating revenues	—			—			259,239			—			—			2,138,223			(94,697		)	2,302,765
Operating costs and expenses
Contract drilling services	4,532			18,902			70,801			84,309			—			789,814			(94,697		)	873,661
Reimbursables	—			—			8,231			—			—			37,268			—			45,499
Depreciation and amortization	—			—			91,802			—			—			519,211			—			611,013
General and administrative	1,264			8,716			—			40,082			1			(4,018		)	—			46,045
Loss on impairment	—			—			—			—			—			1,458,749			—			1,458,749
Total operating costs and expenses	5,796			27,618			170,834			124,391			1			2,801,024			(94,697		)	3,034,967
Operating income (loss)	(5,796		)	(27,618		)	88,405			(124,391		)	(1		)	(662,801		)	—			(732,202		)
Other income (expense)
Income (loss) of unconsolidated affiliates	(962,662		)	(257,142		)	(980,099		)	(333,446		)	515,518			—			2,017,831			—
Interest expense, net of amounts capitalized	(27,891		)	(70,494		)	(11,461		)	(228,423		)	(15,117		)	(122,345		)	252,816			(222,915		)
Gain on extinguishment of debt, net	—			—			—			17,814			—			—			—			17,814
Interest income and other, net	96,635			120			12,616			20,412			15,058			108,108			(252,816		)	133
Income (loss) before income taxes	(899,714		)	(355,134		)	(890,539		)	(648,034		)	515,458			(677,038		)	2,017,831			(937,170		)
Income tax benefit (provision)	—			(42,522		)	163			—			—			151,522			—			109,163
Net income (loss)	(899,714		)	(397,656		)	(890,376		)	(648,034		)	515,458			(525,516		)	2,017,831			(828,007		)
Net income attributable to noncontrolling interests	—			—			—			—			—			(39,294		)	(32,413		)	(71,707		)
Net income (loss) attributable to Noble Corporation	(899,714		)	(397,656		)	(890,376		)	(648,034		)	515,458			(564,810		)	1,985,418			(899,714		)
Other comprehensive income (loss), net	11,035			—			—			—			—			11,035			(11,035		)	11,035
Comprehensive income (loss) attributable to Noble Corporation	$	(888,679	)	$	(397,656	)	$	(890,376	)	$	(648,034	)	$	515,458		$	(553,775	)	$	1,974,383		$	(888,679	)

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2015

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	354,657		$	—		$	—		$	3,325,608		$	(418,655	)	$	3,261,610
Reimbursables	—			—			18,529			—			—			72,113			—			90,642
Revenue from affiliates	—			—			—			—			—			200			—			200
Total operating revenues	—			—			373,186			—			—			3,397,921			(418,655		)	3,352,452
Operating costs and expenses
Contract drilling services	3,611			19,160			395,365			84,005			—			1,142,891			(418,655		)	1,226,377
Reimbursables	—			—			13,686			—			—			56,590			—			70,276
Depreciation and amortization	—			—			77,187			—			—			556,057			—			633,244
General and administrative	1,138			8,683			—			38,167			1			7,446			—			55,435
Loss on impairment	—			—			13			—			—			418,285			—			418,298
Total operating costs and expenses	4,749			27,843			486,251			122,172			1			2,181,269			(418,655		)	2,403,630
Operating income (loss)	(4,749		)	(27,843		)	(113,065		)	(122,172		)	(1		)	1,216,652			—			948,822
Other income (expense)
Income (loss) of unconsolidated affiliates—continuing operations	591,297			73,319			190,335			936,429			647,856			—			(2,439,236		)	—
Interest expense, net of amounts capitalized	(75,925		)	(4,932		)	(12,110		)	(224,894		)	(25,578		)	(68,670		)	198,255			(213,854		)
Interest income and other, net	24,188			4,852			52,026			71,617			5,165			75,071			(198,255		)	34,664
Income before income taxes	534,811			45,396			117,186			660,980			627,442			1,223,053			(2,439,236		)	769,632
Income tax provision	—			(77,929		)	(4,466		)	—			—			(80,225		)	—			(162,620		)
Net Income	534,811			(32,533		)	112,720			660,980			627,442			1,142,828			(2,439,236		)	607,012
Net income attributable to noncontrolling interests	—			—			—			—			—			(105,240		)	33,039			(72,201		)
Net income attributable to Noble Corporation	534,811			(32,533		)	112,720			660,980			627,442			1,037,588			(2,406,197		)	534,811
Other comprehensive income, net	6,243			—			—			—			—			6,243			(6,243		)	6,243
Comprehensive income attributable to Noble Corporation	$	541,054		$	(32,533	)	$	112,720		$	660,980		$	627,442		$	1,043,831		$	(2,412,440	)	$	541,054

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2014

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	327,070		$	—		$	—		$	3,067,195		$	(246,406	)	$	3,147,859
Reimbursables	—			—			6,239			—			—			78,405			—			84,644
Other	—			—			—			—			—			1			—			1
Total operating revenues	—			—			333,309			—			—			3,145,601			(246,406		)	3,232,504
Operating costs and expenses
Contract drilling services	30,885			39,039			120,971			115,909			—			1,447,073			(246,406		)	1,507,471
Reimbursables	—			—			4,687			—			—			61,691			—			66,378
Depreciation and amortization	—			—			65,164			—			—			559,114			—			624,278
General and administrative	2,437			11,376			—			31,620			1			7,560			—			52,994
Loss on impairment	—			—			—			—			—			745,428			—			745,428
Total operating costs and expenses	33,322			50,415			190,822			147,529			1			2,820,866			(246,406		)	2,996,549
Operating income (loss)	(33,322		)	(50,415		)	142,487			(147,529		)	(1		)	324,735			—			235,955
Other income (expense)
Income (loss) of unconsolidated affiliates—continuing operations	(2,885,628		)	157,648			(80,080		)	604,419			448,785			—			1,754,856			—
Income (loss) of unconsolidated affiliates—discontinued operations, net of tax	223,083			50,565			28,580			170,845			6,240			—			(479,313		)	—
Total income (loss) of unconsolidated affiliates	(2,662,545		)	208,213			(51,500		)	775,264			455,025			—			1,275,543			—
Interest expense, net of amounts capitalized	(93,536		)	(3,046		)	(24,974		)	(169,666		)	(33,671		)	(3,148,822		)	3,318,536			(155,179		)
Interest income and other, net	2,913,631			—			249,005			89,449			3,308			64,267			(3,318,536		)	1,124
Income from continuing operations before income taxes	124,228			154,752			315,018			547,518			424,661			(2,759,820		)	1,275,543			81,900
Income tax provision	—			(68,805		)	(3,574		)	—			(1,546		)	(32,005		)	—			(105,930		)
Net income (loss) from continuing operations	124,228			85,947			311,444			547,518			423,115			(2,791,825		)	1,275,543			(24,030		)
Net income (loss) from discontinued operations, net of tax	—			(18,655		)	6,634			—			—			235,104			—			223,083
Net Income	124,228			67,292			318,078			547,518			423,115			(2,556,721		)	1,275,543			199,053
Net income attributable to noncontrolling interests	—			—			—			—			—			(98,603		)	23,778			(74,825		)
Net income attributable to Noble Corporation	124,228			67,292			318,078			547,518			423,115			(2,655,324		)	1,299,321			124,228
Other comprehensive loss, net	(21,732		)	—			—			—			—			(21,732		)	21,732			(21,732		)
Comprehensive income attributable to Noble Corporation	$	102,496		$	67,292		$	318,078		$	547,518		$	423,115		$	(2,677,056	)	$	1,321,053		$	102,496

Condensed Consolidating Statement of Cash Flows

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2016

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments		Total
Cash flows from operating activities
Net cash from operating activities	$	97,388		$	(150,735	)	$	149,431		$	(344,112	)	$	(60	)	$	1,404,359		$	—	$	1,156,271
Cash flows from investing activities
Capital expenditures	—			—			(492,985		)	—			—			(201,754		)	—		(694,739		)
Proceeds from disposal of assets	—			—			—			—			—			24,808			—		24,808
Notes receivable from affiliates	—			—			—			—			—			—			—		—
Net cash from investing activities	—			—			(492,985		)	—			—			(176,946		)	—		(669,931		)
Cash flows from financing activities
Repayment of long-term debt	—			—			—			(1,049,338		)	—			—			—		(1,049,338		)
Issuance of senior notes	—			—			—			980,100			—			—			—		980,100
Debt issuance costs on senior notes	—			—			—			(12,111		)	—			—			—		(12,111		)
Tender offer premium	—			—			—			(24,649		)	—			—			—		(24,649		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(85,944		)	—		(85,944		)
Distributions to parent company, net	(152,360		)	—			—			—			—			—			—		(152,360		)
Advances (to) from affiliates	55,882			150,735			352,308			450,110			60			(1,009,095		)	—		—
Notes payable to affiliates	—			—			—			—			—			—			—		—
Net cash from financing activities	(96,478		)	150,735			352,308			344,112			60			(1,095,039		)	—		(344,302		)
Net change in cash and cash equivalents	910			—			8,754			—			—			132,374			—		142,038
Cash and cash equivalents, beginning of period	1,627			—			2,101			—			—			508,067			—		511,795
Cash and cash equivalents, end of period	$	2,537		$	—		$	10,855		$	—		$	—		$	640,441		$	—	$	653,833

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2015

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	(31,562	)	$	(53,686	)	$	15,207		$	(267,735	)	$	(20,292	)	$	2,105,575		$	—		$	1,747,507
Cash flows from investing activities
Capital expenditures	—			—			(116,594		)	—			—			(320,557		)	—			(437,151		)
Proceeds from disposal of assets	—			—			—			—			—			4,614			—			4,614
Notes receivable from affiliates	124,951			—			—			608,771			—			—			(733,722		)	—
Net cash from investing activities	124,951			—			(116,594		)	608,771			—			(315,943		)	(733,722		)	(432,537		)
Cash flows from financing activities
Net change in borrowings outstanding on bank credit facilities	(1,123,495		)	—			—			—			—			—			—			(1,123,495		)
Repayment of long-term debt	—			—			—			(350,000		)	—			—			—			(350,000		)
Issuance of senior notes	—			—			—			1,092,728			—			—			—			1,092,728
Debt issuance costs on senior notes and credit facilities	(6,450		)	—			—			(9,620		)	—			—			—			(16,070		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(71,504		)	—			(71,504		)
Distributions to parent company, net	(400,614		)	—			—			—			—			—			—			(400,614		)
Advances (to) from affiliates	2,047,563			53,686			103,234			(1,074,144		)	20,292			(1,150,631		)	—			—
Notes payable to affiliates	(608,771		)	—			—			—			—			(124,951		)	733,722			—
Net cash from financing activities	(91,767		)	53,686			103,234			(341,036		)	20,292			(1,347,086		)	733,722			(868,955		)
Net change in cash and cash equivalents	1,622			—			1,847			—			—			442,546			—			446,015
Cash and cash equivalents, beginning of period	5			—			254			—			—			65,521			—			65,780
Cash and cash equivalents, end of period	$	1,627		$	—		$	2,101		$	—		$	—		$	508,067		$	—		$	511,795

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014

(in thousands)

	Noble- Cayman			NHC			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Cash flows from operating activities
Net cash from operating activities	$	2,825,524		$	(151,987	)	$	366,583		$	(232,605	)	$	(31,788	)	$	(903,811	)	$	—		$	1,871,916
Cash flows from investing activities
Capital expenditures	—			—			(1,404,560		)	—			—			(704,574		)	—			(2,109,134		)
Notes receivable from affiliates	50			—			—			273,744			—			—			(273,794		)	—
Net cash from investing activities	50			—			(1,404,560		)	273,744			—			(704,574		)	(273,794		)	(2,109,134		)
Cash flows from financing activities
Net change in borrowings outstanding on bank credit facilities	(437,647		)	—			—			—			—			—			—			(437,647		)
Repayment of long-term debt	—			—			—			(250,000		)	—			—			—			(250,000		)
Long-term borrowings of Paragon Offshore	—			—			—			—			—			1,710,550			—			1,710,550
Financing costs on long-term borrowings of Paragon Offshore	—			—			—			—			—			(14,676		)	—			(14,676		)
Cash balances of Paragon Offshore in Spin-Off	—			—			—			—			—			(104,152		)	—			(104,152		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(79,966		)	—			(79,966		)
Debt issuance costs on senior notes and credit facilities	(398		)	—			—			—			—			—			—			(398		)
Distributions to parent company, net	(631,095		)	—			—			—			—			—			—			(631,095		)
Advances (to) from affiliates	(1,482,686		)	151,987			1,037,829			208,857			31,788			52,225			—			—
Notes payable to affiliates	(273,744		)	—			—			—			—			(50		)	273,794			—
Net cash from financing activities	(2,825,570		)	151,987			1,037,829			(41,143		)	31,788			1,563,931			273,794			192,616
Net change in cash and cash equivalents	4			—			(148		)	(4		)	—			(44,454		)	—			(44,602		)
Cash and cash equivalents, beginning of period	1			—			402			4			—			109,975			—			110,382
Cash and cash equivalents, end of period	$	5		$	—		$	254		$	—		$	—		$	65,521		$	—		$	65,780