Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate in two principal operating segments – deepwater, which consists of our drillship operations, and jack-ups. Both segments provide one service – contract drilling. The Company evaluates performance primarily based on income from operations.

Depreciation and amortization and selling, general and administrative expenses related to our corporate function and other administrative offices have not been allocated to our operating segments for purposes of measuring segment operating income and are included in “Unallocated costs and other.” “Other operating items” consists of non-cash impairment charges, and gains and losses on equipment sales and litigation and related.

Segment information for the three and nine months ended September 30, 2016 and 2015 is set forth below (in millions):

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Deepwater:
Revenues	$	135.1		$	220.9		$	699.0		$	529.7
Operating expenses:
Direct operating costs (excluding items below)	52.4			77.8			175.4			207.3
Depreciation and amortization	28.8			27.6			86.0			66.4
Selling, general and administrative	—			—			—			—
Other operating items	0.1			—			0.4			—
Income from operations	$	53.8		$	115.5		$	437.2		$	256.0
Jack-ups:
Revenues	$	244.3		$	324.5		$	792.4		$	1,071.5
Operating expenses:
Direct operating costs (excluding items below)	133.6			169.8			422.9			550.0
Depreciation and amortization	71.5			73.2			211.0			213.2
Selling, general and administrative	—			—			—			—
Other operating items	33.6			333.5			37.3			338.5
Income (loss) from operations	$	5.6		$	(252.0	)	$	121.2		(30.2		)
Unallocated costs and other:
Revenues	$	—		$	—		$	—		$	—
Operating expenses:
Direct operating costs (excluding items below)	—			—			—			—
Depreciation and amortization	1.9			3.3			4.2			9.6
Selling, general and administrative	23.5			29.7			76.5			88.4
Other operating items	0.4			1.1			0.5			0.9
Loss from operations	$	(25.8	)	$	(34.1	)	$	(81.2	)	$	(98.9	)
Consolidated:
Revenues	$	379.4		$	545.4		$	1,491.4		$	1,601.2
Operating expenses:
Direct operating costs (excluding items below)	186.0			247.6			598.3			757.3
Depreciation and amortization	102.2			104.1			301.2			289.2
Selling, general and administrative	23.5			29.7			76.5			88.4
Other operating items	34.1			334.6			38.2			339.4
Income (loss) from operations	$	33.6		$	(170.6	)	$	477.2		$	126.9