SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of deferred revenue and deferred costs

The following table sets forth deferred revenue (revenues received but unearned) and deferred contracts costs on the Consolidated Balance Sheets at December 31 (in millions):



	Balance Sheet Classification	2016		2015
Deferred revenue ⁽¹⁾
Current	Deferred Revenue	$	103.9	$	33.1
Noncurrent	Other Liabilities	10.5		17.7
		$	114.4	$	50.8

Deferred contract costs
Current	Prepaid Expenses and Other Current Assets	$	2.0	$	3.2
Noncurrent	Other Assets	0.2		1.2
		$	2.2	$	4.4

(1) 2016 Deferred revenue includes $95.9 million ($86.5 million and $9.4 million, current and noncurrent, respectively) related to the Cobalt contract amendment (see Note 1).

Components of receivables and other

The following table sets forth the components of Receivables - Trade and Other at December 31 (in millions):



	2016		2015
Trade	$	286.2	$	395.7
Income tax	7.7		4.5
Other	7.4		10.3
Total receivables - trade and other	$	301.3	$	410.5

Schedule of asset estimated useful life and salvage value

Estimated useful lives and salvage values are presented below:



	Life (in years)	Salvage Value
Jack-up drilling rigs:
Hulls	25 to 35	10	%
Legs	25 to 30	10	%
Quarters	25	10	%
Drilling equipment	2 to 25	0% to 10%

Drillships:
Hulls	35	10	%
Drilling equipment	2 to 25	0% to 10%

Drill pipe and tubular equipment	4	10	%
Other property and equipment	3 to 30	various

Expenditures for new property or enhancements to existing property are capitalized and depreciated over the asset’s estimated useful life. As assets are sold or retired, property cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in results of operations. The Company capitalized a portion of interest cost incurred during the drillship construction period, which ended in 2015 with the completion of the drillship construction program. We capitalized interest in the amount of $16.2 million in 2015 and $57.6 million in 2014. We did not capitalize interest in 2016.

Expenditures for maintenance and repairs are charged to expense as incurred and totaled $118 million in 2016, $129 million in 2015 and $161 million in 2014.

Reconciliation of income (loss) from continuing operations for basic and diluted income per share

A reconciliation of income (loss) from continuing operations for basic and diluted income per share is set forth below (in millions):



	2016		2015		2014
Income (loss) from continuing operations	$	320.6	$	93.3	$	(118.9	)
Income from continuing operations allocated to non-vested share awards	1.5		—		—
Income (loss) from continuing operations available to shareholders	$	322.1	$	93.3	$	(118.9	)

Reconciliation of shares for basic and diluted income per share

A reconciliation of shares for basic and diluted income per share is set forth below (in millions):



	2016	2015	2014
Average common shares outstanding	125.3	124.5	124.1
Effect of dilutive securities - share based compensation	1.0	0.7	—
Average shares for diluted computations	126.3	125.2	124.1

Schedule of antidilutive securities

Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions):



	2016		2015		2014
Share options and appreciation rights	$	1.6	$	1.2	$	2.2
Nonvested restricted shares and restricted share units	0.9		1.1		0.6
Total potentially dilutive shares	$	2.5	$	2.3	$	2.8