Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor Obligations

Noble-Cayman, or one or more 100 percent owned subsidiaries of Noble-Cayman, is a co-issuer or full and unconditional guarantor or otherwise obligated as of December 31, 2017 as follows:

	Issuer
Notes	(Co-Issuer(s))	Guarantor
$250 million 5.75% Senior Notes due 2018	NHIL	Noble-Cayman
$202 million 7.50% Senior Notes due 2019	NHUS	Noble-Cayman
	Noble Drilling Holding, LLC (“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 7.70% 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 8.70% Senior Notes due 2045	NHIL	Noble-Cayman

Condensed Consolidating Balance Sheet

The following consolidating financial statements of Noble-Cayman, NHUS, NDH, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Noble - Cayman		NHUS		NDH			NHIL		NDS6		Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
ASSETS
Current assets
Cash and cash equivalents	$	11	$	—	$	23,160		$	29,324	$	—	$	609,516		$	—		$	662,011
Accounts receivable	—		—		24,722			—		—		179,974			—			204,696
Taxes receivable	—		93,302		3			—		—		12,040			—			105,345
Short-term notes receivable from affiliates	—		—		119,476			—		2,373,452		—			(2,492,928		)	—
Accounts receivable from affiliates	594,456		1,454		144,367			60,945		465,749		5,813,846			(7,080,817		)	—
Prepaid expenses and other current assets	—		—		1,477			—		1		63,963			—			65,441
Total current assets	594,467		94,756		313,205			90,269		2,839,202		6,679,339			(9,573,745		)	1,037,493
Property and equipment, at cost	—		—		857,784			—		—		11,176,547			—			12,034,331
Accumulated depreciation	—		—		(110,005		)	—		—		(2,435,086		)	—			(2,545,091		)
Property and equipment, net	—		—		747,779			—		—		8,741,461			—			9,489,240
Notes receivable from affiliates	3,177,248		—		1,199,815			—		3,943,299		1,175,300			(9,495,662		)	—
Investments in affiliates	4,933,978		4,550,358		5,252,135			12,560,598		7,237,474		—			(34,534,543		)	—
Other assets	2,663		16,775		8,372			—		—		238,718			—			266,528
Total assets	$	8,708,356	$	4,661,889	$	7,521,306		$	12,650,867	$	14,019,975	$	16,834,818		$	(53,603,950	)	$	10,793,261
LIABILITIES AND EQUITY
Current liabilities
Short-term notes payables to affiliates	$	—	$	1,605,243	$	—		$	—	$	—	$	887,685		$	(2,492,928	)	$	—
Current maturities of long-term debt	—		—		—			249,843		—		—			—			249,843
Accounts payable	—		—		1,467			—		—		82,406			—			83,873
Accrued payroll and related costs	—		—		4,780			—		—		50,124			—			54,904
Accounts payable to affiliates	3,410,669		393,073		1,770,066			661,375		—		845,634			(7,080,817		)	—
Taxes payable	—		—		—			—		—		33,965			—			33,965
Interest payable	2,211		—		—			83,960		12,018		—			—			98,189
Other current liabilities	—		—		5,169			—		—		66,297			—			71,466
Total current liabilities	3,412,880		1,998,316		1,781,482			995,178		12,018		1,966,111			(9,573,745		)	592,240
Long-term debt	—		—		—			3,594,332		201,535		—			—			3,795,867
Notes payable to affiliates	—		700,000		474,637			3,175,663		—		5,145,362			(9,495,662		)	—
Deferred income taxes	—		—		5			—		—		164,957			—			164,962
Other liabilities	19,929		—		30,330			—		—		239,919			—			290,178
Total liabilities	3,432,809		2,698,316		2,286,454			7,765,173		213,553		7,516,349			(19,069,407		)	4,843,247
Commitments and contingencies
Total shareholder equity	5,275,547		1,963,573		5,234,852			4,885,694		13,806,422		8,644,002			(34,534,543		)	5,275,547
Noncontrolling interests	—		—		—			—		—		674,467			—			674,467
Total equity	5,275,547		1,963,573		5,234,852			4,885,694		13,806,422		9,318,469			(34,534,543		)	5,950,014
Total liabilities and equity	$	8,708,356	$	4,661,889	$	7,521,306		$	12,650,867	$	14,019,975	$	16,834,818		$	(53,603,950	)	$	10,793,261

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Noble- Cayman		NHUS		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 to 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

Condensed Consolidating Statement of Income

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

Year Ended December 31, 2017

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Operating revenues
Contract drilling services	$	—		$	—		$	168,592		$	—		$	—		$	1,086,320		$	(47,886	)	$	1,207,026
Reimbursables and other	—			—			3,443			—			—			26,446			—			29,889
Total operating revenues	—			—			172,035			—			—			1,112,766			(47,886		)	1,236,915
Operating costs and expenses
Contract drilling services	304			12,090			43,161			3,115			—			627,251			(47,886		)	638,035
Reimbursables	—			—			1,992			—			—			16,443			—			18,435
Depreciation and amortization	—			—			58,236			—			—			484,883			—			543,119
General and administrative	129			5,761			—			1,588			9			33,600			—			41,087
Loss on impairment	—			—			45,012			—			—			76,627			—			121,639
Total operating costs and expenses	433			17,851			148,401			4,703			9			1,238,804			(47,886		)	1,362,315
Operating income (loss)	(433		)	(17,851		)	23,634			(4,703		)	(9		)	(126,038		)	—			(125,400		)
Other income (expense)
Income (loss) of unconsolidated affiliates - continuing operations	(476,382		)	(528,702		)	82,596			188,809			17,874			—			715,805			—
Income (loss) of unconsolidated affiliates - discontinued operations, net of tax	2,967			4,566			—			—			—			—			(7,533		)	—
Interest expense, net of amounts capitalized	(10,951		)	(32,838		)	(13,493		)	(430,580		)	(15,288		)	(130,442		)	341,603			(291,989		)
Interest income and other, net	10,483			(141		)	87,287			4,771			224,772			19,716			(341,603		)	5,285
Income (loss) before income taxes	(474,316		)	(574,966		)	180,024			(241,703		)	227,349			(236,764		)	708,272			(412,104		)
Income tax benefit (provision)	—			241,960			(440		)	—			—			(284,115		)	—			(42,595		)
Net income (loss) from continuing operations	(474,316		)	(333,006		)	179,584			(241,703		)	227,349			(520,879		)	708,272			(454,699		)
Net income (loss) from discontinuing operations, net of tax	—			(1,598		)	—			—			—			4,565			—			2,967
Net income (loss)	(474,316		)	(334,604		)	179,584			(241,703		)	227,349			(516,314		)	708,272			(451,732		)
Net (income) loss attributable to noncontrolling interests	—			—			—			—			—			(20,589		)	(1,995		)	(22,584		)
Net income (loss) attributable to Noble Corporation	(474,316		)	(334,604		)	179,584			(241,703		)	227,349			(536,903		)	706,277			(474,316		)
Other comprehensive income (loss), net	9,252			—			—			—			—			9,252			(9,252		)	9,252
Comprehensive income (loss) attributable to Noble Corporation	$	(465,064	)	$	(334,604	)	$	179,584		$	(241,703	)	$	227,349		$	(527,651	)	$	697,025		$	(465,064	)

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)

Year Ended December 31, 2016

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Noble- Cayman			NHUS			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 and other	—			—			9,190			—			—			51,375			—			60,565
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 INCOME and COMPREHENSIVE INCOME (LOSS)

Year Ended December 31, 2015

(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)

	Noble- Cayman			NHUS			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 and other	—			—			18,529			—				—			72,313			—			90,842
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		)
Gain on extinguishment of debt, net	—			—			—			—				—			—			—			—
Interest income and other, net	24,188			4,852			52,026			71,617				5,165			75,071			(198,255		)	34,664
Income (loss) from continuing operations 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 (loss)	534,811			(32,533		)	112,720			660,980				627,442			1,142,828			(2,439,236		)	607,012
Net (income) loss attributable to noncontrolling interests	—			—			—			—				—			(105,240		)	33,039			(72,201		)
Net income (loss) 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 (loss), net	6,243			—			—			—				—			6,243			(6,243		)	6,243
Comprehensive income (loss) attributable to Noble Corporation	$	541,054		$	(32,533	)	$	112,720		$	660,980			$	627,442		$	1,043,831		$	(2,412,440	)	$	541,054

Condensed Consolidating Statement of Cash Flows

CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2017

(Unless otherwise indicated, dollar amounts in tables are in thousands)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments		Total
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	32,195		$	100,883		$	209,898		$	(403,391	)	$	217,080		$	335,672		$	—	$	492,337
Cash flows from investing activities
Capital expenditures	—			—			(3,622		)	—			—			(154,348		)	—		(157,970		)
Proceeds from disposal of assets	—			—			46			—			—			2,336			—		2,382
Net cash used in investing activities	—			—			(3,576		)	—			—			(152,012		)	—		(155,588		)
Cash flows from financing activities
Repayment of long-term debt	—			—			—			(300,000		)	—			—			—		(300,000		)
Debt issuance costs on senior notes and credit facility	—			—			—			(42		)	—			—			—		(42		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(56,881		)	—		(56,881		)
Contributions from parent company, net	28,352			—			—			—			—			—			—		28,352
Advances (to) from affiliates	(63,073		)	(100,883		)	(194,017		)	732,757			(217,080		)	(157,704		)	—		—
Net cash provided by (used in) financing activities	(34,721		)	(100,883		)	(194,017		)	432,715			(217,080		)	(214,585		)	—		(328,571		)
Net change in cash and cash equivalents	(2,526		)	—			12,305			29,324			—			(30,925		)	—		8,178
Cash and cash equivalents, beginning of period	2,537			—			10,855			—			—			640,441			—		653,833
Cash and cash equivalents, end of period	$	11		$	—		$	23,160		$	29,324		$	—		$	609,516		$	—	$	662,011

NOBLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2016

(Unless otherwise indicated, dollar amounts in tables are in thousands)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments		Total
Cash flows from operating activities
Net cash provided by (used in) 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
Net cash used in 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
Tender offer premium	—			—			—			(24,649		)	—			—			—		(24,649		)
Debt issuance costs on senior notes and credit facilities	—			—			—			(12,111		)	—			—			—		(12,111		)
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		)	—		—
Net cash provided by (used in) 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

(Unless otherwise indicated, dollar amounts in tables are in thousands)

	Noble- Cayman			NHUS			NDH			NHIL			NDS6			Other Non-guarantor Subsidiaries of Noble			Consolidating Adjustments			Total
Cash flows from operating activities
Net cash provided by (used in) 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 provided by (used in) 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		)
Notes payable to affiliates	(608,771		)	—			—			—			—			(124,951		)	733,722			—
Advances (to) from affiliates	2,047,563			53,686			103,234			(1,074,144		)	20,292			(1,150,631		)	—			—
Net cash provided by (used in) 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