Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DIAMOND OFFSHORE DRILLING, INC. | ||
Entity Central Index Key | 0000949039 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 138,054,311 | ||
Entity Public Float | $ 16,882,138 | ||
Entity Current Reporting Status | Yes | ||
Entity File Number | 1-13926 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 76-0321760 | ||
Entity Address, Address Line One | 15415 Katy Freeway | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77094 | ||
City Area Code | 281 | ||
Local Phone Number | 492-5300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | The information called for by Part III, Items 10, 11, 12, 13 and 14 of this Form 10-K, will be included in a definitive proxy statement or an amendment to this Form 10-K to be filed within 120 days after the end of the fiscal year covered by this Form 10-K, and is incorporated herein by reference. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 405,869 | $ 156,281 |
Restricted cash | 24,511 | |
Accounts receivable | 136,222 | 256,315 |
Less: allowance for credit losses | (5,562) | (5,459) |
Accounts receivable, net | 130,660 | 250,856 |
Prepaid expenses and other current assets | 62,275 | 68,658 |
Assets held for sale | 2,000 | 1,000 |
Total current assets | 625,315 | 476,795 |
Drilling and other property and equipment, net of accumulated depreciation | 4,122,809 | 5,152,828 |
Other assets | 200,329 | 204,421 |
Total assets | 4,948,453 | 5,834,044 |
Current liabilities: | ||
Accounts payable | 33,437 | 68,586 |
Accrued liabilities | 140,788 | 210,780 |
Taxes payable | 27,214 | 23,228 |
Total current liabilities | 201,439 | 302,594 |
Long-term debt | 1,975,741 | |
Deferred tax liability | 28,338 | 47,528 |
Other liabilities | 117,305 | 275,971 |
Commitments and contingencies (Note 11) | ||
Total liabilities not subject to compromise | 347,082 | 2,601,834 |
Liabilities subject to compromise | 2,618,805 | |
Stockholders’ equity: | ||
Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding) | ||
Common stock (par value $0.01, 500,000,000 shares authorized; 145,263,865 shares issued and 138,054,311 shares outstanding at December 31, 2020; 144,781,766 shares issued and 137,703,910 shares outstanding at December 31, 2019) | 1,453 | 1,448 |
Additional paid-in capital | 2,029,979 | 2,024,347 |
Retained earnings | 157,297 | 1,412,201 |
Accumulated other comprehensive loss | (18) | |
Treasury stock, at cost (7,209,554 and 7,077,856 shares of common stock at December 31, 2020 and 2019, respectively) | (206,163) | (205,768) |
Total stockholders’ equity | 1,982,566 | 3,232,210 |
Total liabilities and stockholders’ equity | $ 4,948,453 | $ 5,834,044 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 145,263,865 | 144,781,766 |
Common stock, shares outstanding | 138,054,311 | 137,703,910 |
Treasury stock, shares | 7,209,554 | 7,077,856 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 733,687 | $ 980,644 | $ 1,083,215 |
Operating expenses: | |||
Depreciation | 320,085 | 355,596 | 331,789 |
General and administrative | 56,925 | 67,878 | 85,351 |
Impairment of assets | 842,016 | 27,225 | |
Restructuring and separation costs | 17,724 | 5,041 | |
(Gain) loss on disposition of assets | (7,375) | 1,072 | 241 |
Total operating expenses | 1,886,828 | 1,262,974 | 1,195,398 |
Operating loss | (1,153,141) | (282,330) | (112,183) |
Other income (expense): | |||
Interest income | 484 | 6,382 | 8,477 |
Interest expense, net of amounts capitalized (excludes $98,027 of contractual interest expense on debt subject to compromise for the year ended December 31, 2020) | (42,585) | (122,832) | (123,240) |
Foreign currency transaction loss | (4,498) | (3,936) | (379) |
Reorganization items, net | (76,910) | ||
Other, net | 560 | 702 | 700 |
Loss before income tax benefit | (1,276,090) | (402,014) | (226,625) |
Income tax benefit | 21,186 | 44,800 | 46,353 |
Net loss | $ (1,254,904) | $ (357,214) | $ (180,272) |
Loss per share, Basic and Diluted | $ (9.09) | $ (2.60) | $ (1.31) |
Weighted-average shares outstanding, Basic and Diluted | 137,996 | 137,652 | 137,399 |
Contract Drilling [Member] | |||
Revenues: | |||
Total revenues | $ 692,753 | $ 934,934 | $ 1,059,973 |
Operating expenses: | |||
Contract drilling, excluding depreciation | 618,553 | 793,412 | 722,834 |
Reimbursable Expenses [Member] | |||
Revenues: | |||
Total revenues | 40,934 | 45,710 | 23,242 |
Operating expenses: | |||
Contract drilling, excluding depreciation | $ 38,900 | $ 45,016 | $ 22,917 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Statement [Abstract] | |
Contractual interest expense of debt | $ 98,027 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income or Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (1,254,904) | $ (357,214) | $ (180,272) |
Derivative financial instruments: | |||
Reclassification adjustment for loss (gain) included in net loss | 18 | (7) | (6) |
Investments in marketable securities: | |||
Unrealized holding gain on investments | 23 | 69 | |
Reclassification adjustment for gain included in net loss | (55) | (37) | |
Total other comprehensive gain (loss) | 18 | (39) | 26 |
Comprehensive loss | $ (1,254,886) | $ (357,253) | $ (180,246) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Change in Accounting Principle [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Change in Accounting Principle [Member] | Accumulated Other Comprehensive Gains (Losses) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2017 | $ 3,774,261 | $ (14,812) | $ 1,441 | $ 2,011,397 | $ 1,964,497 | $ (14,812) | $ (5) | $ (203,069) |
Beginning Balance, shares at Dec. 31, 2017 | 144,085,292 | 6,857,510 | ||||||
Adjusted balance at Dec. 31, 2017 | 3,759,449 | $ 1,441 | 2,011,397 | 1,949,685 | (5) | $ (203,069) | ||
Adjusted balance, shares at Dec. 31, 2017 | 144,085,292 | 6,857,510 | ||||||
Net loss | (180,272) | (180,272) | ||||||
Anti-dilution adjustment | 2 | 2 | ||||||
Stock options exercised, shares | 3,773 | |||||||
Stock-based compensation, net of tax | 5,448 | $ 3 | 6,746 | $ (1,301) | ||||
Stock-based compensation, net of tax, shares | 294,597 | 87,799 | ||||||
Net (loss) gain on derivative financial instruments | (6) | (6) | ||||||
Net gain (loss) on investments | 32 | 32 | ||||||
Ending Balance at Dec. 31, 2018 | 3,584,653 | $ 1,444 | 2,018,143 | 1,769,415 | 21 | $ (204,370) | ||
Ending Balance, shares at Dec. 31, 2018 | 144,383,662 | 6,945,309 | ||||||
Net loss | (357,214) | (357,214) | ||||||
Stock-based compensation, net of tax | 4,810 | $ 4 | 6,204 | $ (1,398) | ||||
Stock-based compensation, net of tax, shares | 398,104 | 132,547 | ||||||
Net (loss) gain on derivative financial instruments | (7) | (7) | ||||||
Net gain (loss) on investments | (32) | (32) | ||||||
Ending Balance at Dec. 31, 2019 | 3,232,210 | $ 1,448 | 2,024,347 | 1,412,201 | (18) | $ (205,768) | ||
Ending Balance, shares at Dec. 31, 2019 | 144,781,766 | 7,077,856 | ||||||
Net loss | (1,254,904) | (1,254,904) | ||||||
Stock-based compensation, net of tax | 5,242 | $ 5 | 5,632 | $ (395) | ||||
Stock-based compensation, net of tax, shares | 482,099 | 131,698 | ||||||
Net (loss) gain on derivative financial instruments | 18 | $ 18 | ||||||
Ending Balance at Dec. 31, 2020 | $ 1,982,566 | $ 1,453 | $ 2,029,979 | $ 157,297 | $ (206,163) | |||
Ending Balance, shares at Dec. 31, 2020 | 145,263,865 | 7,209,554 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net loss | $ (1,254,904) | $ (357,214) | $ (180,272) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 320,085 | 355,596 | 331,789 |
Loss on impairment of assets | 842,016 | 27,225 | |
Reorganization items, net | 22,106 | ||
(Gain) loss on disposition of assets | (7,375) | 1,072 | 241 |
Deferred tax provision | (19,228) | (56,908) | (75,993) |
Stock-based compensation expense | 5,637 | 6,208 | 6,749 |
Contract liabilities, net | 8,823 | 27,578 | 183 |
Contract assets, net | 3,444 | 2,625 | (6,221) |
Deferred contract costs, net | 1,960 | 59,141 | 22,765 |
Long-term employee remuneration programs | (4,256) | 3,169 | 547 |
Noncurrent collateral deposits | (18,262) | ||
Other assets, noncurrent | (7,950) | 52 | (1,307) |
Other liabilities, noncurrent | (2,279) | 6,514 | (3,217) |
Other | 3,321 | 2,380 | 2,491 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 114,329 | (37,832) | 87,970 |
Prepaid expenses and other current assets | 6,334 | (1,170) | 6,211 |
Accounts payable and accrued liabilities | (14,143) | 3,897 | (7,587) |
Taxes payable | 8,721 | (6,019) | 20,484 |
Net cash provided by operating activities | 8,379 | 9,089 | 232,058 |
Investing activities: | |||
Capital expenditures | (189,528) | (326,090) | (222,406) |
Proceeds from disposition of assets, net of disposal costs | 13,333 | 16,217 | 70,067 |
Proceeds from sale of foreign bonds | 5,915 | ||
Proceeds from sale and maturities of marketable securities | 2,300,000 | 1,600,000 | |
Purchase of marketable securities | (1,996,996) | (1,895,997) | |
Net cash used in investing activities | (170,280) | (6,869) | (448,336) |
Financing activities: | |||
Borrowings under credit facility | 436,000 | ||
Debt issuance costs and arrangement fees | (12) | (5,651) | |
Other | (35) | ||
Net cash provided by (used in) financing activities | 436,000 | (12) | (5,686) |
Net change in cash, cash equivalents and restricted cash | 274,099 | 2,208 | (221,964) |
Cash, cash equivalents and restricted cash, beginning of year | 156,281 | 154,073 | 376,037 |
Cash, cash equivalents and restricted cash, end of year | $ 430,380 | $ 156,281 | $ 154,073 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry around the globe with a fleet of 13 offshore drilling rigs, consisting of four drillships and nine semisubmersible rigs, including two cold-stacked semisubmersible rigs. Our current fleet excludes two previously impaired rigs, which we expect to sell in the first half of 2021. See Note 8. Unless the context otherwise requires, references in these Notes to “Diamond Offshore,” “we,” “us” or “our” mean Diamond Offshore Drilling, Inc. and our consolidated subsidiaries. We were incorporated in Delaware in 1989. As of February 4, 2021, Loews Corporation, or Loews, owned approximately 53% of the outstanding shares of our common stock. Principles of Consolidation Our consolidated financial statements include the accounts of Diamond Offshore Drilling, Inc. and our wholly-owned subsidiaries after elimination of intercompany transactions and balances. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States (or U.S.), or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. Changes in Accounting Principles Credit Losses Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to measure credit losses of certain financial assets, including trade receivables, utilizing a Leases. Leases We adopted ASU 2016-02 effective January 1, 2019 using an optional transition method requiring leases existing at, or entered into after, January 1, 2019 to be recognized and measured under the new accounting standard. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting for leases. In our adoption of ASU 2016-02, we also utilized a transition practical expedient package whereby we did not reassess (i) whether any of our expired or existing contracts contain a lease, (ii) the classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The adoption of this standard resulted in the recording of operating lease assets and offsetting operating lease liabilities of $146.8 million as of January 1, 2019, with no related impact on our annual Consolidated Statement of Stockholders’ Equity. See Note 12. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 . Revenue Recognition Revenue from Contracts with Customers (Topic 606) We adopted ASU 2014-09 and its related amendments, or collectively Topic 606, effective January 1, 2018 using the modified retrospective implementation method. Accordingly, we have applied the five-step method outlined in Topic 606 for determining when and how revenue is recognized to all contracts that were not completed as of the date of adoption. Revenues for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported under the previous revenue recognition guidance. For contracts that were modified before the effective date, we have considered the modification guidance within the new standard and determined that the revenue recognized and contract balances recorded prior to adoption for such contracts were not impacted. While Topic 606 requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, its adoption has not had a material impact on the measurement or recognition of our revenues. Our adoption of ASU 2014-09 represents a change in accounting principle and therefore, we have recorded the cumulative effect of adopting Topic 606 as an increase to opening retained earnings on January 1, 2018. This adjustment represents an accrual for the earned portion of demobilization revenue expected to be received for contracts not completed as of December 31, 2017, which was not recordable under previous revenue recognition guidance until completion of the demobilization activities. See Note 3. Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash to be cash equivalents. The effect of exchange rate changes on cash balances held in foreign currencies was not material for the years ended December 31, 2020, 2019 and 2018. Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income currently while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. Significant judgments, assumptions and estimates may be required in determining whether or not such replacements and betterments meet the criteria for capitalization and in determining useful lives and salvage values of such assets . Changes in these judgments, assumptions and estimates could produce results that differ from those reported . During the years ended December 31, 2020 and 2019 , we capitalized $ 137.4 million and $ 343.8 million, respectively, in replacements and betterments of our drilling fleet . Costs incurred for major rig upgrades and/or the construction of rigs are accumulated in construction work-in-progress, with no depreciation recorded on the additions, until the month the upgrade or newbuild is completed and the rig is placed in service. Upon retirement or sale of a rig, the cost and related accumulated depreciation are removed from the respective accounts and any gains or losses are reported in our Consolidated Statements of Operations as “(Gain) loss on disposition of assets.” Depreciation is recognized up to applicable salvage values by applying the straight-line method over the remaining estimated useful lives from the year the asset is placed in service. Drilling rigs and equipment are depreciated over their estimated useful lives ranging from 3 to 30 years. Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, contracted backlog of less than one year for a rig, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project, reactivation or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm-stacked or cold-stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm-stacked or cold-stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance, inspection or other reactivation costs associated with a rig returning to work; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability-weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes and then assesses its future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation , further sustained decline in oil and gas prices, cancelations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, capital expenditures required due to advances in offshore drilling technology, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations . Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different . See Note 4 . Fair Value of Financial Instruments We believe that the carrying amount of our current financial instruments approximates fair value because of the short maturity of these instruments. See Note 8. Debt Issuance Costs Deferred costs associated with our credit facilities are presented in “Other assets” in our Consolidated Balance Sheets at December 31, 2020 and 2019 and amortized as interest expense over the respective terms of the credit facilities. During 2018, we paid $5.7 million in debt issuance and arrangement fees in connection with our credit facilities. Deferred costs associated with our senior notes are presented in our Consolidated Balance Sheets at December 31, 2019 as a reduction to the related long-term debt and are amortized over the respective terms of the related debt. Subsequent to the commencement of bankruptcy proceedings in April 2020, we wrote off $3.9 million in deferred arrangement fees associated with our Revolving Credit Facility (as defined below) and $23.7 million in unamortized discount and debt issuance costs associated with our senior indebtedness during the year ended December 31, 2020 in accordance with FASB Accounting Standards Codification Topic No. 852 – Reorganizations , or ASC 852. The write-off of fees and unamortized discount in 2020 were reported as “Reorganization items, net” in our Consolidated Statements of Operations. Income Taxes We account for income taxes in accordance with accounting standards that require the recognition of the amount of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been currently recognized in our financial statements or tax returns. In each of our tax jurisdictions we recognize a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax asset or liability for the estimated future tax effects attributable to temporary differences and carryforwards. Deferred tax assets are reduced by a valuation allowance, if necessary, which is determined by the amount of any tax benefits that, based on available evidence, are not expected to be realized under a “more likely than not” approach. Deferred tax assets and liabilities are classified as noncurrent in a classified statement of financial position. We make judgments regarding future events and related estimates especially as they pertain to the forecasting of our effective tax rate, the potential realization of deferred tax assets such as utilization of foreign tax credits, and exposure to the disallowance of items deducted on tax returns upon audit. We record both interest and penalties related to accrued uncertain tax positions in “Income tax benefit” in our Consolidated Statements of Operations. Liabilities for uncertain tax positions, including any interest and penalties, are denominated in the currency of the related tax jurisdiction and are revalued for changes in currency exchange rates. The revaluation of such liabilities for uncertain tax positions is reported in “Income tax benefit” in our Consolidated Statements of Operations. See Note 15. Comprehensive Loss Comprehensive (loss) income is the change in equity of a business enterprise during a period from transactions and other events and circumstances except those transactions resulting from investments by owners and distributions to owners. Comprehensive loss for the three years ended December 31, 2020, 2019 and 2018 includes net loss and unrealized holding gains and losses on marketable securities and financial derivatives designated as cash flow accounting hedges. Foreign Currency Our functional currency is the U.S. dollar. Transactions incurred in currencies other than the U.S. dollar are subject to gains or losses due to fluctuations in those currencies. We report foreign currency transaction gains and losses as “Foreign currency transaction (loss) gain” in our Consolidated Statements of Operations. The revaluation of assets and liabilities related to foreign income taxes, including deferred tax assets and liabilities and uncertain tax positions, including any interest and/or penalties, is reported in “Income tax benefit” in our Consolidated Statements of Operations. |
Chapter 11 Proceedings
Chapter 11 Proceedings | 12 Months Ended |
Dec. 31, 2020 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | 2. Chapter 11 Proceedings Chapter 11 Cases On April 26, 2020 (or the Petition Date), Diamond Offshore Drilling, Inc. (or the Company) and certain of its direct and indirect subsidiaries (which we refer to, together with the Company, as the Debtors) filed voluntary petitions (or the Chapter 11 Cases) for relief under chapter 11 (or Chapter 11) of title 11 of the United States Code (or the Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of Texas (or the Bankruptcy Court). The Chapter 11 Cases are jointly administered under the caption In re Diamond Offshore Drilling, Inc., ., Case No. 20-32307 (DRJ). The Debtors filed motions with the Bankruptcy Court seeking authorization to continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. To ensure their ability to continue operating in the ordinary course of business, the Debtors filed a variety of motions with the Bankruptcy Court seeking “first day” relief, including authority to continue using their cash management system, pay employee wages and benefits and pay certain vendors and suppliers in the ordinary course of business, or the First Day Motions, all of which were approved. Pursuant to the First Day Motions, and subject to certain terms and dollar limits included therein, the Debtors were authorized to continue to use their unrestricted cash on hand, as well as all cash generated from daily operations, which is being used to continue the Debtors’ operations without interruption during the course of their restructuring. Also pursuant to the First Day Motions, the Debtors received the Bankruptcy Court’s authorization to, among other things and subject to the terms and conditions set forth in the applicable orders, pay prepetition employee wages, salaries, health benefits and other obligations to employees during their restructuring, pay certain claims relating to critical and other vendors, continue their cash management programs and insurance policies and continue to honor their current customer programs. The Debtors are authorized under the Bankruptcy Code to pay post-petition expenses incurred in the ordinary course of business without seeking Bankruptcy Court approval. Until a plan of reorganization is approved and effective, the Debtors will continue to manage their properties and operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Commencement of the Chapter 11 Cases automatically stayed most actions against the Debtors, including actions to collect indebtedness incurred prior to the Petition Date, actions to enforce pre-Petition Date contractual rights or remedies against the Debtors and actions to exercise control over the Debtors’ property. Subject to certain exceptions under the Bankruptcy Code, the commencement of the Chapter 11 Cases also automatically stayed the continuation of most legal proceedings or the filing of other actions against the Debtors or their property to recover on, collect, or secure a claim arising prior to the Petition Date or to exercise control over property of the Debtors’ bankruptcy estates, unless and until the Bankruptcy Court modifies or lifts the automatic stay as to any such claim. Notwithstanding the general application of the automatic stay described above, governmental authorities may determine to continue actions brought under their police and regulatory powers. The U.S. Trustee for the Southern District of Texas filed a notice appointing an official committee of unsecured creditors on May 11, 2020, which was subsequently reconstituted on June 11, 2020 and September 14, 2020. On May 27, 2020, the Bankruptcy Court approved a new key employee retention plan and a new non-executive incentive plan covering certain non-executive key employees. On June 23, 2020, the Bankruptcy Court approved a key employee incentive plan covering certain additional key employees, including our executive officers. Upon the participating employee’s acceptance of an award under the new compensation plans, all outstanding unvested incentive awards previously granted to the employee under our previously existing incentive plans, consisting of restricted stock units , or RSUs, stock appreciation rights , or SARs , and/or cash incentive awards, were canceled. As of December 31, 2020, the Debtors had not emerged from bankruptcy. On January 22, 2021, the Debtors entered into a Plan Support Agreement, or the PSA, among the Debtors, certain holders of the Company’s 5.70% Senior Notes due 2039, 3.45% Senior Notes due 2023, 4.875% Senior Notes due 2043 and 7.875% Senior Notes due 2025 (collectively, the Senior Notes) party thereto (collectively the Consenting Note Holders) and certain holders of claims (collectively, the RCF Claims) under the Company’s $950.0 million syndicated revolving credit facility (or Revolving Credit Agreement). Concurrently, the Debtors entered into the Backstop Agreement (as defined in the PSA) with certain holders of Senior Notes and entered into the Commitment Letter (as defined in the PSA) with certain holders of RCF Claims to provide exit financing upon emergence from bankruptcy. See Note 18 for a discussion of the Debtors’ Chapter 11 plan of reorganization attached as an exhibit to the PSA, or the Plan. Potential Claims Certain holders of prepetition claims were required to file proofs of claim by August 17, 2020, and applicable governmental entities were required to file proofs of claim by October 23, 2020. As of February 1, 2021, 866 proofs of claim (or Claims), excluding intercompany obligations, totaling approximately $4.5 The Debtors have recorded $2.6 billion of "Liabilities subject to compromise" in their combined condensed financial statements at December 31, 2020. Through the claims resolution process, as set forth in the Plan, we have identified, and we expect to continue to identify, Claims that we believe should be modified or disallowed entirely by the Bankruptcy Court because they are duplicative, have been settled, later amended or superseded, are without merit or are overstated or are not valid liabilities of the Debtors for other reasons. We will file objections with the Bankruptcy Court as necessary for Claims we believe should be disallowed or modified in amount or priority. As is typical in Chapter 11 cases, due to the number of claims filed and other factors, the claims resolution process will continue beyond February 1, 2021. Due to the uncertainty of estimating certain claims prior to a final order by the Bankruptcy Court, ultimate recoveries on the Claims cannot be fully determined as of December 31, 2020. Going Concern During the first quarter of 2020, the business climate in which we operate experienced a significant adverse change, primarily as a result of the market impacts of the oil price war between Saudi Arabia and Russia and regulatory, market and commercial challenges that arose due to the COVID-19 pandemic and efforts to mitigate the spread of the virus, both of which resulted in a dramatic decline in oil prices. As a result of the filing of the Chapter 11 Cases, the principal and interest due under our outstanding Senior Notes and Revolving Credit Agreement became immediately due and payable and have been presented as “Liabilities subject to compromise” in our Consolidated Balance Sheets at December 31, 2020. However, any We have projected that we will not have sufficient cash on hand or available liquidity to repay all such outstanding debt. For the year ended December 31, 2020 we reported a net loss of $1.3 billion, inclusive of a pre-tax $842.0 million impairment charge. These conditions and events raise substantial doubt as to our ability to continue as a going concern for twelve months after the date our financial statements are issued. Financial information in this report has been prepared on the basis that we will continue as a going concern, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business as they come due. Financial information in this report does not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if we were unable to realize our assets and settle our liabilities as a going concern in the normal course of operations. Such adjustments could be material. Our long-term liquidity requirements and the adequacy of capital resources are difficult to predict at this time. Although we anticipate that the financial restructuring pursuant to our Chapter 11 Cases will help address our liquidity concerns, as of December 31, 2020, we did not have a plan of reorganization in place. Although we filed the Plan with the Bankruptcy Court on January 22, 2021, as of the date of this report, the Plan has not yet been approved by the Bankruptcy Court. Additionally, the approval of the Plan, or another Chapter 11 plan of reorganization, is not within our control and uncertainty remains over the Bankruptcy Court's approval of a plan of reorganization. As such, due to the lack of clarity regarding confirmation of the Plan and emergence from bankruptcy, we have concluded that substantial doubt continues to exist about our ability to continue as a going concern. Chapter 11 Accounting We have prepared our Consolidated Financial Statements as if we were a going concern and in accordance with ASC 852. Prepetition Restructuring Charges Reorganization Items The following table provides information about reorganization items incurred during the year ended December 31, 2020, subsequent to the Petition Date (in thousands): Year Ended December 31, 2020 Professional fees $ 53,517 Write-off of debt issuance costs 27,552 Net gain on settlement with certain unsecured vendors (4,159 ) Total reorganization items, net $ 76,910 Payments of $40.3 million related to professional fees and vendor cancellation costs have been presented as cash outflows from operating activities in our Consolidated Statements of Cash Flows for the year ended December 31, 2020. See Note 5. Liabilities Subject to Compromise . We have reported prepetition unsecured and under-secured obligations that may be impacted by the Chapter 11 Cases as “Liabilities subject to compromise” in our Consolidated Balance Sheets at December 31, 2020. ASC 852 requires prepetition liabilities that are subject to compromise to be reported at the amounts expected to be allowed by the Bankruptcy Court. The amounts currently reported as liabilities subject to compromise are preliminary and may be subject to future adjustment depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, continued reconciliation or other events. These amounts represent our best estimate of allowed claims that will be resolved as part of the bankruptcy proceedings but may be ultimately settled for a lesser amount. We will continue to evaluate these liabilities throughout the Chapter 11 Cases and adjust amounts as necessary. Such adjustments may be material. Liabilities subject to compromise at December 31 , 2020 consist of the following (in thousands): December 31, 2020 Debt subject to compromise: Borrowings under Revolving Credit Agreement $ 436,000 3.45% Senior Notes due 2023 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Lease liabilities 112,646 Accrued interest 47,636 Accounts payable 16,725 Other accrued liabilities 1,302 Other liabilities 4,496 Total liabilities subject to compromise $ 2,618,805 Upon filing of the Chapter 11 Cases on April 26, 2020, we ceased accruing interest on our Senior Notes and borrowings under our Revolving Credit Agreement. As a result, we did not record $76.7 million and $21.3 million of contractual interest expense related to our Senior Notes and borrowings under our Revolving Credit Agreement, respectively, for the year ended December 31, 2020. Debtor Financial Statements . Condensed combined financial statements of the Debtors are set forth below. These financial statements exclude the financial statements of the non-Debtor subsidiaries. Transactions and balances of receivables and payables between the Debtors have been eliminated in consolidation. Amounts payable to the non-Debtor subsidiaries are reported in the condensed combined balance sheet of the Debtors. DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED BALANCE SHEET (In thousands) December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 390,407 Restricted cash 24,511 Accounts receivable 123,981 Less: allowance for credit losses (102 ) Accounts receivable, net 123,879 Prepaid expenses and other current assets 50,439 Assets held for sale 1,000 Total current assets 590,236 Drilling and other property and equipment, net of accumulated depreciation 4,112,527 Investments in non-debtor subsidiaries 2,468,384 Other assets 184,955 Total assets $ 7,356,102 LIABILITIES AND DEBTORS’ EQUITY Current liabilities: Accounts payable $ 30,280 Accrued liabilities 130,133 Taxes payable 25,005 Amounts payable to non-debtor subsidiaries 1,057,913 Total current liabilities 1,243,331 Note payable to non-debtor subsidiary 328,000 Deferred tax liability 11,907 Other liabilities 63,674 Total liabilities not subject to compromise 1,646,912 Liabilities subject to compromise 2,618,805 Total debtors’ equity 3,090,385 Total liabilities and debtors’ equity $ 7,356,102 DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENT OF OPERATIONS (In thousands) Year Ended December 31, 2020 Revenues: Contract drilling $ 601,354 Revenues related to reimbursable expenses 40,952 Total revenues 642,306 Operating expenses: Contract drilling, excluding depreciation 538,074 Reimbursable expenses 38,917 Depreciation 319,124 General and administrative 53,039 Impairment of assets 842,016 Restructuring and separation costs 15,634 Gain on disposition of assets (7,208 ) Total operating expenses 1,799,596 Operating loss (1,157,290 ) Other income (expense): Interest income 466 Interest expense (50,586 ) Foreign currency transaction loss (1,757 ) Reorganization items, net (76,910 ) Other, net (431 ) Loss before income tax benefit (1,286,508 ) Income tax benefit 29,093 Net loss $ (1,257,415 ) DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENT OF CASH FLOWS (In thousands) Year Ended December 31, 2020 Operating activities: Net loss $ (1,257,415 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 319,124 Loss on impairment of assets 842,016 Reorganization items, net 22,106 Gain on disposition of assets (7,208 ) Deferred tax provision (19,467 ) Stock-based compensation expense 5,637 Contract liabilities, net 13,238 Contract assets, net 1,337 Deferred contract costs, net (4,231 ) Long-term employee remuneration programs (3,991 ) Noncurrent collateral deposits (18,262 ) Other assets, noncurrent (7,608 ) Other 3,701 Changes in operating assets and liabilities: Accounts receivable 72,550 Prepaid expenses and other current assets 17,664 Accounts payable and accrued liabilities (1,713 ) Taxes payable (15,712 ) Due to non-debtor subsidiaries 61,697 Net cash provided by operating activities 23,463 Investing activities: Capital expenditures (184,101 ) Capital contribution to non-debtor subsidiary (15,661 ) Proceeds from disposition of assets, net of disposal costs 13,119 Net cash used in investing activities (186,643 ) Financing activities: Borrowings under credit facility 436,000 Net cash provided by financing activities 436,000 Net change in cash, cash equivalents and restricted cash 272,820 Cash, cash equivalents and restricted cash, beginning of period 142,098 Cash, cash equivalents and restricted cash, end of period $ 414,918 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our contract drilling services include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities and/or modifications required for the contract. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services provided within our drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which we provide drilling services. Consideration for activities that are not distinct within the context of our contracts and do not correspond to a distinct time increment within the contract term are allocated across the single performance obligation and recognized ratably over the initial term of the contract (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months). Consideration for activities that correspond to a distinct time increment within the contract term is recognized in the period when the services are performed. The total transaction price is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. See below for further discussion regarding the allocation of the transaction price to the remaining performance obligations. The amount estimated for variable consideration may be constrained (reduced) and is only included in the transaction price to the extent that it is probable that a significant reversal of previously recognized revenue will not occur throughout the term of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside of our control that could result in a significant reversal of revenue as well as the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period as required. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term, and therefore, recognized in line with the contractual rate billed for the services provided for any given hour. Mobilization/Demobilization Revenue. We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization and demobilization of our rigs. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to contract drilling revenue as services are rendered over the initial term of the related drilling contract. Demobilization revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized in earnings ratably over the initial term of the contract with an offset to an accretive contract asset. In some contracts, there is uncertainty as to the likelihood and amount of expected demobilization revenue to be received. For example, contractual provisions may require that a rig demobilize a certain distance before the demobilization revenue is payable or the amount may vary dependent upon whether or not the rig has additional contracted work within a certain distance from the wellsite. Therefore, the estimate for such revenue may be constrained, as described above, depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on our past experience and knowledge of market conditions. Contract Preparation Revenue. Some of our drilling contracts require downtime before the start of the contract to prepare the rig to meet customer requirements. At times, we may be compensated by the customer for such work (on either a fixed lump-sum or variable dayrate basis). These activities are not considered to be distinct within the context of the contract. We record a contract liability for contract preparation fees received, which is amortized ratably to contract drilling revenue over the initial term of the related drilling contract. Capital Modification Revenue . From time to time, we may receive fees from our customers for capital improvements or upgrades to our rigs to meet contractual requirements (on either a fixed lump-sum or variable dayrate basis). The activities related to these capital modifications are not considered to be distinct within the context of our contracts. We record a contract liability for such fees and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer, as “Revenues related to reimbursable expenses” in our Consolidated Statements of Operations. Such amounts are recognized ratably over the period within the contract term during which the corresponding goods and services are to be consumed. Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Contract asset balances consist primarily of demobilization revenue that we expect to receive and is recognized ratably throughout the contract term, but invoiced upon completion of the demobilization activities. Once the demobilization revenue is invoiced, the corresponding contract asset is transferred to accounts receivable. Contract assets may also include amounts recognized in advance of amounts invoiced due to the blending of rates when a contract has operating dayrates that increase over the initial contract term. Contract liabilities include payments received for mobilization as well as rig preparation and upgrade activities which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. Contract liabilities may also include amounts invoiced in advance of amounts recognized due to the blending of rates when a contract has operating dayrates that decrease over the initial contract term. Contract balances are netted at a contract level, such that deferred revenue for mobilization, contract preparation and capital modifications (contract liabilities) is netted with any accrued demobilization revenue (contract asset) for each applicable contract. The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): December 31, 2020 December 31, 2019 Trade receivables $ 115,732 $ 199,572 Current contract assets (1) 2,870 6,314 Noncurrent contract assets (1) — — Current contract liabilities (deferred revenue) (1) (51,763 ) (9,573 ) Noncurrent contract liabilities (deferred revenue) (1) (5,164 ) (38,531 ) (1) Contract assets and contract liabilities may reflect balances that have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2020 and 2019. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances December 31, 2020 2019 Contract assets, beginning of period $ 6,314 $ 8,939 Contract liabilities, beginning of period (48,104 ) (20,526 ) Net balance at beginning of period (41,790 ) (11,587 ) Decrease due to amortization of revenue that was included in the beginning contract liability balance 35,231 6,952 Increase due to cash received, excluding amounts recognized as revenue during the period (44,081 ) (34,529 ) Increase due to revenue recognized during the period but contingent on future performance 4,748 3,537 Decrease due to transfer to receivables during the period (7,466 ) (5,119 ) Adjustments (699 ) (1,044 ) Net balance at end of period $ (54,057 ) $ (41,790 ) Contract assets at end of period $ 2,870 $ 6,314 Contract liabilities at end of period (56,927 ) (48,104 ) Deferred Contract Costs Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of contracted rigs represent costs of fulfilling a contract as they relate directly to a contract, enhance resources that will be used in satisfying our performance obligations in the future and are expected to be recovered. Such costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such deferred contract costs in the amount of $19.8 million and $2.2 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2020. Deferred contract costs in the amount of $20.0 million and $4.0 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2019. During the years ended December 31, 2020 and 2019, the amount of amortization of such costs was $22.8 million and $96.0 million, respectively. There was no impairment loss in relation to capitalized costs. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as drilling and other property and equipment and depreciated over the estimated useful life of the improvement. Transaction Price Allocated to Remaining Performance Obligations The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of December 31, 2020 (in thousands): For the Years Ending December 31, 2021 2022 Total Mobilization and contract preparation revenue $ 26,521 $ 2,614 $ 29,135 Capital modification revenue 13,906 1,452 15,358 Blended rate and other revenue 14,668 874 15,542 Total $ 55,095 $ 4,940 $ 60,035 The revenue included above consists of expected fixed mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations, as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. Revenue expected to be recognized in the future related to the blending of rates when a contract has operating dayrates that decrease over the initial contract term is also included. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at December 31, 2020. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in Topic 606 and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts, including dayrate revenue. |
Asset Impairments
Asset Impairments | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Asset Impairments | 4. Asset Impairments 2020 Impairments. As discussed in Note 2, during the first quarter of 2020, the business climate in which we operate experienced a significant adverse change, which resulted in a dramatic decline in oil prices. During the first quarter of 2020, we evaluated five rigs with indicators of impairment. Based on our assumptions and analysis at that time, we determined that the carrying values of four of our drilling rigs were impaired and recorded an aggregate impairment charge of $774.0 million to write down the carrying values of these rigs to their estimated fair values. During the fourth quarter of 2020, we evaluated three drilling rigs with indicators of impairment, including one rig that was previously impaired in the first quarter of 2020. Based on further diminished business opportunities for the previously impaired rig, we reassessed our business plan and, after consideration of several factors, including the costs of relocating and stacking the rig, concluded that the carrying value of this rig was impaired at December 31, 2020. We recognized an additional impairment charge of $68.0 million to further adjust the carrying value of this rig to its fair value. With respect to the two other rigs with indicators of impairment at December 31, 2020, we determined that the undiscounted probability-weighted cash flow for each of these rigs was in excess of each rig’s respective carrying value, based on our assumptions and analysis at that time, and concluded that no impairment of these two rigs had occurred at December 31, 2020. We collectively refer to rigs impaired during the first and fourth quarters of 2020 as the 2020 Impaired Rigs. We estimated the fair values of the 2020 Impaired Rigs using an income approach, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures, repair and regulatory survey costs, as well as See Note 8. 2019 Impairment Evaluation. At December 31, 2019, we evaluated three drilling rigs with indicators of impairment. Based on our assumptions and analysis at that time, we determined that the undiscounted probability-weighted cash flow of each of these rigs was in excess of its carrying value. As a result, we concluded that no impairment of these rigs had occurred at December 31, 2019. 2018 Impairment. During 2018, we recorded an impairment loss of $27.2 million to recognize a reduction in fair value of the . We estimated the fair value of the impaired rig using a market approach based on a signed agreement to sell the rig, less estimated costs to sell. We considered this valuation approach to be a Level 3 fair value measurement due to the level of estimation involved as the sale had not yet been completed at the time of our analysis. See Note 1. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Consolidated Balance Sheets Information Accounts receivable, net of allowance for bad debts, consists of the following (in thousands): December 31, 2020 2019 Trade receivables $ 115,732 $ 199,572 Value added tax receivables 10,781 17,716 Federal income tax receivable 8,420 38,574 Related party receivables 78 166 Other 1,211 287 136,222 256,315 Allowance for credit losses (5,562 ) (5,459 ) Total $ 130,660 $ 250,856 The allowance for credit losses at December 31, 2020 and 2019 represents our current estimate of credit losses associated with our “Trade receivables” and “Current contract assets.” See Note 8 for a discussion of our concentrations of credit risk and allowance for credit losses. Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2020 2019 Deferred contract costs $ 19,808 $ 20,019 Prepaid taxes 16,112 12,475 Rig spare parts and supplies 12,606 18,250 Current contract assets 2,870 6,314 Prepaid insurance 2,446 2,892 Prepaid legal retainers 2,408 — Prepaid rig costs 2,317 2,990 Other 3,708 5,718 Total $ 62,275 $ 68,658 Accrued liabilities consist of the following (in thousands): December 31, 2020 2019 Deferred revenue $ 51,763 $ 9,573 Payroll and benefits 30,296 42,494 Shorebase and administrative costs 17,275 5,275 Rig operating expenses 21,123 37,969 Personal injury and other claims 6,495 7,074 Accrued capital project/upgrade costs 7,075 56,603 Current operating lease liability 5,072 20,030 Interest payable — 28,234 Other 1,689 3,528 Total $ 140,788 $ 210,780 Consolidated Statements of Cash Flows Information Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): December 31, 2020 2019 2018 Accrued but unpaid capital expenditures at period end $ 7,615 $ 56,603 $ 37,234 Common stock withheld for payroll tax obligations (1) 395 1,398 1,301 Cash interest payments 19,843 113,063 113,063 Cash paid for reorganization items, net 40,301 — — Cash income taxes paid (refunded), net: Foreign 11,826 17,821 9,286 U.S. federal (42,462 ) 1,001 (7,389 ) State 36 (15 ) 2 (1) Represents the cost of 131,698, 132,547 and 87,799 shares of common stock withheld to satisfy the payroll tax obligation incurred as a result of the vesting of restricted stock units in 2020, 2019 and 2018, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at December 31, 2020, 2019 and 2018, respectively. In June 2020, we received Trinidad bonds in settlement of a VAT receivable. The bonds were valued at $5.7 million based on third-party quotes received, which approximated the amount of the settled receivable. During the third quarter of 2020, we sold the bonds for proceeds of $5.9 million. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation We have an Equity Incentive Compensation Plan, or Equity Plan, for our officers, independent contractors, employees and non-employee directors, which is designed to encourage stock ownership by such persons. Under the Equity Plan, we may grant both time-vesting and performance-vesting awards, which are earned on the achievement of certain performance criteria. The following types of awards may be granted under the Equity Plan: • Stock options (including incentive stock options and nonqualified stock options); • Stock appreciation rights, or SARs; • Restricted stock; • Restricted stock units, or RSUs; • Performance shares or units; and • Other stock-based awards (including dividend equivalents). A maximum of 7,500,000 shares of our common stock were initially available for the grant or settlement of awards under the Equity Plan, subject to adjustment for certain business transactions and changes in capital structure. Vesting conditions and other terms and conditions of awards under the Equity Plan are determined by our Board of Directors or the compensation committee of our Board of Directors, subject to the terms of the Equity Plan. RSUs may be issued with performance-vesting or time-vesting features. Except for RSUs issued to our Chief Executive Officer, RSUs are not participating securities, and the holders of such awards have no right to receive regular dividends if or when declared. However, we have not paid a dividend to stockholders since 2015. Total compensation cost recognized for all awards under the Equity Plan (or its predecessor) for the years ended December 31, 2020, 2019 and 2018 was $5.6 million, $6.2 million and $6.8 million, respectively. Tax benefits recognized for the years ended December 31, 2020, 2019 and 2018 related thereto were $0.2 million, $0.5 million and $0.8 million, respectively. As of December 31, 2020 there was $0.1 million of total unrecognized compensation cost related to non-vested awards under the Equity Plan, which we expect to recognize over a weighted average period of one year. On May 27, 2020, the Bankruptcy Court approved a new key employee retention plan and a new non-executive incentive plan covering certain non-executive key employees. On June 23, 2020, the Bankruptcy Court approved a key employee incentive plan covering certain additional key employees, including our executive officers. Upon the participating employee’s acceptance of an award under the new compensation plans, all outstanding unvested incentive awards previously granted to the employee under our previously-existing incentive plans, consisting of RSUs, SARs and/or cash incentive awards, were canceled. Time-Vesting Awards SARs . Currently, SARs awarded under the Equity Plan generally vest immediately and expire in ten years. The exercise price per share of SARs awarded under the Equity Plan may not be less than the fair market value of our common stock on the date of grant. The fair value of SARs granted under the Equity Plan (or its predecessor) during each of the years ended December 31, 2020, 2019 and 2018 was estimated using the Black Scholes pricing model with the following weighted average assumptions: Year Ended December 31, 2020 2019 2018 Expected life of SARs (in years) 8 7 7 Expected volatility 127.65 % 39.35 % 32.10 % Risk free interest rate 1.85 % 2.11 % 2.56 % The expected life of SARs is based on historical data as is the expected volatility. Risk free interest rates are determined using the U.S. Treasury yield curve at time of grant with a term equal to the expected life of the SARs. A summary of SARs activity under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In Thousands) Awards outstanding at January 1, 2020 922,230 $ 50.19 Granted 7,000 $ 7.13 Cancelled (160,400 ) $ 56.57 Expired (156,130 ) $ 66.61 Awards outstanding at December 31, 2020 612,700 $ 43.84 3.3 $ — Awards exercisable at December 31, 2020 612,700 $ 43.84 3.3 $ — The weighted-average grant date fair values per share of awards granted during the years ended December 31, 2020, 2019 and 2018 were $6.64, $3.75 and $7.11, respectively. The total intrinsic value of awards exercised during the years ended December 31, 2020, 2019 and 2018 was $0, $0 and $0.1 million, respectively. The total fair value of awards vested during the years ended December 31, 2020, 2019 and 2018 was $0.1 million, $0.1 million and $0.7 million, respectively. Restricted Stock Units . RSUs are contractual rights to receive shares of our common stock in the future if the applicable vesting conditions are met. In 2020, 2019 and 2018, we granted an aggregate of 0, 310,700 and 135,759 time-vesting RSUs, respectively. One-half of each annual grant of time-vesting RSUs will vest two years from the date of grant and the remaining 50% will vest three years from the date of grant, conditioned upon continued employment through the applicable vesting date. The fair value of time-vesting RSUs granted under the Equity Plan was estimated based on the fair market value of our common stock on the date of grant. A summary of activity for time-vesting RSUs under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted -Average Grant Date Fair Value Per Share Nonvested awards at January 1, 2020 533,603 $ 12.58 Granted — $ — Vested (156,819 ) $ 15.64 Cancelled (301,816 ) $ 11.26 Forfeited (63,968 ) $ 11.55 Nonvested awards at December 31, 2020 11,000 $ 11.49 The total fair value of time-vesting RSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $0.2 million, $1.9 million and $1.9 million, respectively. Performance-Vesting Awards Restricted Stock Units . In 2020, 2019 and 2018, we granted an aggregate of 0, 190,634 and 194,563 performance-vesting RSUs, respectively, which will vest upon achievement of certain performance goals as set forth in the individual award agreements over the three-year performance period beginning on January 1 in the year of grant. The shares of our common stock to be received upon the vesting of the performance-vesting RSUs will be delivered no later than March 15 of the year following completion of the three-year performance period. The fair value of performance-vesting RSUs granted under the Equity Plan to employees was estimated based on the fair market value of our common stock on the date of grant. A summary of activity for performance-vesting RSUs under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted -Average Grant Date Fair Value Per Share Nonvested awards at January 1, 2020 709,277 $ 14.41 Granted — $ — Vested (325,280 ) $ 16.61 Cancelled (346,001 ) $ 12.58 Forfeited (37,996 ) $ 12.31 Nonvested awards at December 31, 2020 — $ — The total fair value of performance-vesting RSUs that vested during the years ended December 31, 2020, 2019 and 2018 was $1.2 million, $2.3 million and $2.5 million, respectively. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 7. Loss Per Share We present basic and diluted loss per share on our Consolidated Statements of Operations. Basic loss per share excludes dilution and is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. We experienced a net loss for each of the years in the three-year period ended December 31, 2020 and therefore, have excluded shares of common stock issuable upon exercise of outstanding stock appreciation rights and vesting of outstanding restricted stock units from the calculation of weighted-average shares because their inclusion would be antidilutive. The following table sets forth the stock-based awards excluded from the computations of diluted loss per share Year Ended December 31, 2020 2019 2018 Employee and director: SARs 777 982 1,133 RSUs 464 1,205 1,153 |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 8. Financial Instruments and Fair Value Disclosures Concentrations of Credit Risk and Allowance for Credit Losses Our credit risk corresponds primarily to trade receivables. Since the market for our services is the offshore oil and gas industry, our customer base consists primarily of major and independent oil and gas companies, as well as government-owned oil companies. At December 31, 2020, we believe that we have potentially significant concentrations of credit risk due to the number of rigs we currently have contracted and our limited number of customers, as some of our customers have contracted for multiple rigs. In general, before working for a customer with whom we have not had a prior business relationship and/or whose financial stability may be uncertain, we perform a credit review on that customer, including a review of its credit ratings and financial statements. Based on that credit review, we may require that the customer have a bank issue a letter of credit on its behalf, prepay for the services in advance or provide other credit enhancements. We currently have one customer for which we have required letters of credit to guarantee $12.8 million of the revenue to be earned pursuant to a contract extension amendment signed during the third quarter of 2020. We have not required any other credit enhancements by our customers or required any to pay for services in advance at December 31, 2020. We have historically used the specific identification method to identify and reserve for uncollectible accounts. The amounts reserved for uncollectible accounts in previous periods have not been significant, individually or in comparison to our total revenues. At December 31, 2020, $6.1 million in trade receivables were considered past due by 30 days or more, of which $5.5 million were fully reserved for in previous years. The remaining $0.6 million were less than 90 days past due and considered collectible. Pursuant to ASU 2016-13, we have reviewed our historical credit loss experience over a look-back period of ten years, which we deem to be representative of both up-turns and down-cycles in the offshore drilling industry. Based on this review, we developed a credit loss factor using a weighted-average ratio of our actual credit losses to revenues during the look-back period. In addition, we also considered current and future anticipated economic conditions in determining our credit loss factor, including crude oil prices and liquidity of credit markets. In applying the requirements of CECL, we segregated our trade receivables into three credit loss risk pools based on customer credit ratings, each of which represents a tier of increasing credit risk. We calculated a credit loss factor based on historical loss rate information and then applied a multiple of our credit loss factor to each of these risk pools, considering the impact of current and future economic information and the level of risk associated with these pools, to calculate our current estimate of credit losses. Trade receivables that are fully covered by allowances for credit losses are excluded from these risk pools for purposes of calculating our current estimate of credit losses. For purposes of calculating our current estimate of credit losses at January 1, 2020 and December 31, 2020, all trade receivables were deemed to be in a single risk pool based on their credit ratings at each respective period. Our current estimate of credit losses under CECL was $0.1 million at December 31, 2020, which included the cumulative adjustment recorded for the initial adoption of ASU 2016-13. Due to immateriality, the cumulative adjustment was recorded in “Contract drilling, excluding depreciation” expense in our Consolidated Statements of Operations instead of in opening retained earnings as prescribed in ASU 2016-13. Our total allowance for credit losses was $5.6 million and $5.5 million at December 31, 2020 and 2019, respectively. See Notes 1 and 5. Fair Values Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted market prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 assets and liabilities generally include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation or for which there is a lack of transparency as to the inputs used. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis in accordance with GAAP. In addition, certain assets and liabilities may be recorded at fair value on a nonrecurring basis. Generally, we record assets at fair value on a nonrecurring basis as a result of impairment charges. We recorded impairment charges related to four of our drilling rigs, which were measured at fair value on a nonrecurring basis in 2020 and have presented the aggregate loss in “Impairment of assets” in our Consolidated Statements of Operations for the year ended December 31, 2020. Assets measured at fair value are summarized below (in thousands). December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Year Ended (1) Nonrecurring fair value measurements: Impaired assets (2) $ — $ — $ 1,000 $ 1,000 $ 842,016 December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Money market funds $ 135,300 $ — $ — $ 135,300 (1) Represents impairment losses of $774.0 million and $68.0 million recognized during the first and fourth quarters of 2020, respectively, related to four semisubmersible rigs which were written down to their estimated fair values. See Note 4. (2) Represents the total book value as of December 31, 2020 of one semisubmersible rig, which was written down to its estimated fair value during the fourth quarter of 2020. See Note 4. We believe that the carrying amounts of our other financial assets and liabilities (excluding long-term debt), which are not measured at fair value in our Consolidated Balance Sheets, approximate fair value based on the following assumptions: • Cash and cash equivalents and restricted cash -- The carrying amounts approximate fair value because of the short maturity of these instruments. • Accounts receivable and accounts payable -- The carrying amounts approximate fair value based on the nature of the instruments. Our Senior Notes are not measured at fair value; however, under the GAAP fair value hierarchy, our Senior Notes would be considered Level 2 liabilities. The fair value of our Senior Notes was derived using a third-party pricing service at December 31, 2020 and 2019 . We perform control procedures over information we obtain from pricing services and brokers to test whether prices received represent a reasonable estimate of fair value. These procedures include the review of pricing service or broker pricing methodologies and comparing fair value estimates to actual trade activity executed in the market for these instruments occurring generally within a 10-day period of the report date . Fair values and related carrying values of our Senior Notes (see Note 10) are shown below (in millions). December 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 30.6 $ 250.0 $ 212.5 $ 249.6 7.875% Senior Notes due 2025 61.3 500.0 435.0 497.1 5.70% Senior Notes due 2039 61.2 500.0 292.5 497.3 4.875% Senior Notes due 2043 91.9 750.0 408.8 749.0 We have estimated the fair value amounts by using appropriate valuation methodologies and information available to management. Considerable judgment is required in developing these estimates, and accordingly, no assurance can be given that the estimated values are indicative of the amounts that would be realized in a free market exchange. |
Drilling and Other Property and
Drilling and Other Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Drilling and Other Property and Equipment | 9. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): December 31, 2020 2019 Drilling rigs and equipment $ 6,987,630 $ 8,004,489 Land and buildings 41,072 64,267 Office equipment and other 83,016 92,289 Cost 7,111,718 8,161,045 Less: accumulated depreciation (2,988,909 ) (3,008,217 ) Drilling and other property and equipment, net $ 4,122,809 $ 5,152,828 During 2020, we recognized an aggregate pre-tax gain of $7.4 million on the disposal of assets, which included a pre-tax gain on the sale of our corporate headquarters office building in Houston, Texas and the Ocean Confidence During 2020, we transferred the net book value of the Ocean America Ocean Rover |
Credit Agreements and Senior No
Credit Agreements and Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Agreements and Senior Notes | 10. Credit Agreements and Senior Notes Credit Agreements In March 2020, we terminated our $225.0 million revolving credit agreement, which was scheduled to mature on October 22, 2020. At December 31, 2019 and the time of termination, there were no borrowings outstanding under the facility. We did not incur any early termination penalties in connection with the termination and wrote off $0.5 million in deferred arrangement fees associated with the facility during the year ended December 31, 2020. On October 2, 2018, Diamond Offshore Drilling, Inc., or DODI, as the U.S. borrower, and our subsidiary Diamond Foreign Asset Company, or DFAC, as the foreign borrower, entered into our senior 5-year Revolving Credit Agreement with a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent, for general corporate purposes, including investments, acquisitions and capital expenditures. The maximum amount of borrowings available under the Revolving Credit Agreement was $950.0 million and it provided for a swingline subfacili t In March 2020, we borrowed $436.0 million under the Revolving Credit Agreement . The filing of the Chapter 11 Cases on April 26, 2020 constituted an event of default under the Revolving Credit Agreement, and the principal and interest on outstanding borrowings thereunder became immediately due and payable . Also, as a result of the filing of the Chapter 11 Cases, we received notification on April 28, 2020 that the commitments under our Revolving Credit Agreement had been reduced from $950 million to approximately $442.0 million, representing the amount of borrowings outstanding plus the value of a . have been presented as “Liabilities subject to compromise” in our Consolidated Balance Sheets at December 31, 2020. See Note 2. At December 31, 2020, the outstanding borrowings under the Revolving Credit Agreement of $436.0 million are adjusted base rate loans that bear interest at a rate of 5.25 The weighted average interest rate on the combined borrowings at December 31, 2020 was 8.50%. In addition, we had a $6.0 million financial letter of credit outstanding under the Revolving Credit Agreement, which incurs a participation fee of 6.25% per annum. The letter of credit was drawn on by the beneficiary in January 2021 and was converted to an adjusted base rate loan under the Revolving Credit Agreement. On April 26, 2020, as a result of filing the Chapter 11 Cases, we ceased accruing interest on our borrowings under our Revolving Credit Agreement. As a result, we did not record $21.3 million of contractual interest expense related to outstanding borrowings under our Revolving Credit Agreement for the year ended December 31, 2020. However, the exact amount of interest relating to the period after the Petition Date is subject to final determination in accordance with the Plan. Additionally, we wrote off $3.9 million in deferred arrangement fees associated with the Revolving Credit Agreement during the year ended December 31, 2020. Senior Notes At December 31, 2020, our Senior Notes were comprised of the following debt issues (dollars in millions): Aggregate Principal Stated Interest Rate at Issuance Semiannual Interest Debt Issue Amount Maturity Date Coupon Effective Payment Dates 3.45% Senior Notes due 2023 $ 250.0 November 1, 2023 3.45 % 3.50 % May 1 and November 1 7.875% Senior Notes due 2025 $ 500.0 August 15, 2025 7.875 % 8.00 % February 15 and August 15 5.70% Senior Notes due 2039 $ 500.0 October 15, 2039 5.70 % 5.75 % April 15 and October 15 4.875% Senior Notes due 2043 $ 750.0 November 1, 2043 4.875 % 4.89 % May 1 and November 1 The filing of the Chapter 11 Cases constituted an event of default that accelerated the Company’s obligations under our Senior Notes. As a result, the principal and accrued interest thereon are immediately due and payable and have been presented as “Liabilities subject to compromise” in our Consolidated Balance Sheets at December 31, 2020 Upon filing of the Chapter 11 Cases, we ceased accruing interest on our senior unsecured debt. As a result, we did not record $ 76.7 million of contractual interest expense related to our Senior Notes for the year ended December 31, 2020. In addition, we wrote off $ 23.7 million in unamortized discount and debt issuance costs associated with the Senior Notes during the year ended December 31, 2020. At December 31, 2020 and 2019, the carrying value of our Senior Notes, net of unamortized discount and debt issuance costs, was as follows (in thousands): December 31, 2020 2019 3.45% Senior Notes due 2023 $ 250,000 $ 248,759 7.875% Senior Notes due 2025 500,000 491,655 5.70% Senior Notes due 2039 500,000 493,316 4.875% Senior Notes due 2043 750,000 742,011 Total Senior Notes, net $ 2,000,000 $ 1,975,741 Senior Notes Due 2025 . In August 2017, we issued $500.0 million aggregate principal amount of unsecured 7.875% senior notes due 2025, or 2025 Notes, and received net proceeds of $489.1 million after deduction of underwriter discounts, commissions and expenses. We used the net proceeds from the 2025 Notes, together with cash on hand, to fund the redemption of our previously outstanding 5.875% Senior Notes due 2019. The 2025 Notes are unsecured obligations of DODI, and rank equally in right of payment to all of its existing and future senior indebtedness, and are structurally subordinated to all existing and future obligations of our subsidiaries. We have the right to redeem some or all of the 2025 Notes at any time or from time to time, on at least 15 days but not more than 60 days prior written notice, at the applicable redemption price specified in the governing indenture, plus accrued and unpaid interest to, but excluding, the date of redemption Senior Notes Due 2023 and 2043 . Our 3.45% Senior Notes due 2023 and 4.875% Senior Notes due 2043 are unsecured and unsubordinated obligations of DODI, and rank equally in right of payment to all of its existing and future unsecured and unsubordinated indebtedness, and are effectively subordinated to all existing and future obligations of our subsidiaries. We have the right to redeem all or a portion of these notes for cash at any time or from time to time, on at least 15 days 60 days Senior Notes Due 2039 . Our 5.70% Senior Notes due 2039 are unsecured and unsubordinated obligations of DODI, and rank equally in right of payment to all of its existing and future unsecured and unsubordinated indebtedness, and are effectively subordinated to all existing and future obligations of our subsidiaries. We have the right to redeem all or a portion of these notes for cash at any time or from time to time, on at least 15 days but not more than 60 days prior written notice, at the redemption price specified in the governing indenture plus accrued and unpaid interest to the date of redemption. See Note 18. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Various claims have been filed against us in the ordinary course of business, including claims by offshore workers alleging personal injuries. With respect to each claim or exposure, we have made an assessment, in accordance with GAAP, of the probability that the resolution of the matter would ultimately result in a loss. When we determine that an unfavorable resolution of a matter is probable and such amount of loss can be determined, we record a liability for the amount of the estimated loss at the time that both of these criteria are met. Our management believes that we have recorded adequate accruals for any liabilities that may reasonably be expected to result from these claims. Asbestos Litigation . We are one of several unrelated defendants in lawsuits filed in Louisiana state courts alleging that defendants manufactured, distributed or utilized drilling mud containing asbestos and, in our case, allowed such drilling mud to have been utilized aboard our drilling rigs. The plaintiffs seek, among other things, an award of unspecified compensatory and punitive damages. The manufacture and use of asbestos-containing drilling mud had already ceased before we acquired any of the drilling rigs addressed in these lawsuits. We believe that we are not liable for the damages asserted in the lawsuits pursuant to the terms of our 1989 asset purchase agreement with Diamond M Corporation. We are unable to estimate our potential exposure, if any, to these lawsuits at this time but do not believe that our ultimate liability, if any, resulting from this litigation will have a material effect on our consolidated financial condition, results of operations or cash flows . Non-Income Tax and Related Claims . We have received assessments related to, or otherwise have exposure to, non-income tax items such as sales-and-use tax, value-added tax, ad valorem tax, custom duties, and other similar taxes in various taxing jurisdictions. We have determined that we have a probable loss for these taxes and the related penalties and interest and, accordingly, have recorded a $13.5 million and $16.1 million liability at December 31, 2020 and 2019, respectively. We intend to defend these matters vigorously; however, the ultimate outcome of these assessments and exposures could result in additional taxes, interest and penalties for which the fully assessed amounts would have a material adverse effect on our financial condition, results of operations or cash flows Other Litigation. We have been named in various other claims, lawsuits or threatened actions that are incidental to the ordinary course of our business, including a claim by one of our customers in Brazil, Petróleo Brasileiro S.A., or Petrobras, that it will seek to recover from its contractors, including us, any taxes, penalties, interest and fees that it must pay to the Brazilian tax authorities for our applicable portion of withholding taxes related to Petrobras’ charter agreements with its contractors. We intend to defend these matters vigorously; however, litigation is inherently unpredictable, and the ultimate outcome or effect of any claim, lawsuit or action cannot be predicted with certainty. As a result, there can be no assurance as to the ultimate outcome of any litigation matter. Any claims against us, whether meritorious or not, could cause us to incur significant costs and expenses and require significant amounts of management and operational time and resources. In the opinion of our management, no such pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. Personal Injury Claims . Under our current insurance policies, our deductibles for marine liability insurance coverage with respect to personal injury claims not related to named windstorms in the U.S. Gulf of Mexico, which primarily result from Jones Act liability in the U.S. Gulf of Mexico, are $5.0 million for the first occurrence and vary in amounts ranging between $5.0 million and, if aggregate claims exceed certain thresholds, up to $100.0 million for each subsequent occurrence, depending on the nature, severity and frequency of claims that might arise during the policy year. Our deductibles for personal injury claims arising due to named windstorms in the U.S. Gulf of Mexico are $25.0 million for the first occurrence and vary in amounts ranging between $25.0 million and, if aggregate claims exceed certain thresholds, up to $100.0 million for each subsequent occurrence, depending on the nature, severity and frequency of claims that might arise during the policy year. The Jones Act is a federal law that permits seamen to seek compensation for certain injuries during the course of their employment on a vessel and governs the liability of vessel operators and marine employers for the work-related injury or death of an employee. We engage outside consultants to assist us in estimating our aggregate liability for personal injury claims based on our historical losses and utilizing various actuarial models. We allocate a portion of the aggregate liability to “Accrued liabilities” based on an estimate of claims expected to be paid within the next twelve months with the residual recorded as “Other liabilities.” At December 31, 2020, our estimated liability for personal injury claims was $14.7 million, of which $5.9 million and $8.8 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2019, our estimated liability for personal injury claims was $17.4 million, of which $6.4 million and $11.0 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. The eventual settlement or adjudication of these claims could differ materially from our estimated amounts due to uncertainties such as: • the severity of personal injuries claimed; • significant changes in the volume of personal injury claims; • the unpredictability of legal jurisdictions where the claims will ultimately be litigated; • inconsistent court decisions; and • the risks and lack of predictability inherent in personal injury litigation. Purchase Obligations . At December 31, 2020, we had no purchase obligations for major rig upgrades or any other significant obligations, except for those related to our direct rig operations, which arise during the normal course of business. Services Agreement . In February 2016, we entered into a ten-year Future commitments under the contractual services agreements are estimated to be approximately $39 million per year or an estimated $210 million in the aggregate over the remaining term of the agreements. See Note 18. In addition, we lease Well Control Equipment for our drillships under ten-year operating leases. See Note 12. Letters of Credit and Other. We were contingently liable as of December 31, 2020 in the amount of $32.5 million under certain tax, performance, supersedeas, VAT and customs bonds and letters of credit. Agreements relating to approximately $24.2 million of customs, tax, VAT and supersedeas bonds can require collateral at any time, while the remaining agreements, aggregating $8.3 million, cannot require collateral except in events of default. The letter of credit was drawn on by the beneficiary in January 2021 and was converted to an adjusted base rate loan under our Revolving Credit Agreement. During 2020, we also made cash collateral deposits of $17.5 million with respect to other bonds and letters of credit, which are recorded in “Other assets” in our Consolidated Balance Sheets at December 31, 2020. |
Leases and Lease Commitments
Leases and Lease Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases and Lease Commitments | 12. Leases and Lease Commitments Our leasing activities primarily consist of operating leases for our corporate and shorebase offices, office and information technology equipment, employee housing, vehicles, onshore storage yards and certain rig equipment and tools. Our leases have terms ranging from one month to ten years, some of which include options to extend the lease for up to five years and/or to terminate the lease within one year. In November 2020, we sold our corporate headquarters office building in Houston, Texas for a net pre-tax gain of $3.7 million and entered into a corresponding 3-year leaseback agreement for a portion of the office, which includes an option to terminate after two years. Additionally, we are participants in four sale and leaseback arrangements with a subsidiary of Baker Hughes pursuant to the 2016 sale of Well Control Equipment on our drillships and corresponding agreements to lease back that equipment under ten-year five-year In applying ASU 2016-02, we utilize an exemption for short-term leases whereby we do not record leases with terms of one year or less on the balance sheet. We have also made an accounting policy election not to separate lease components from non-lease components for each of our classes of underlying assets, except for subsea equipment, which includes the Well Control Equipment discussed above. At inception, the consideration for the overall Well Control Equipment arrangement was allocated between the lease and service components based on an estimation of stand-alone selling price of each component, which maximized observable inputs. The costs associated with the service portion of the agreement are accounted for separately from the cost attributable to the equipment leases based on that allocation and thus, are not included in our right-of-use lease asset or lease liability balances. The non-lease components for each of our other classes of assets generally relate to maintenance, monitoring and security services and are not separated from their respective lease components. See Note 1 1 . The lease term used for calculating our right-of-use assets and lease liabilities is determined by considering the noncancelable lease term, as well as any extension options that we are reasonably certain to exercise. The determination to include option periods is generally made by considering the activity in the region or for the rig corresponding to the respective lease, among other contract-based and market-based factors. We have used our incremental borrowing rate to discount future lease payments as the rate implicit in our leases is not readily determinable. To arrive at our incremental borrowing rate prior to filing of the Chapter 11 Cases, we considered our unsecured borrowings and then adjusted those rates to assume full collateralization and to factor in the individual lease term and payment structure. The incremental borrowing rate for leases entered or modified in 2020 subsequent to the Petition Date was determined primarily based on secured borrowing rates being negotiated in relation to a pending plan of reorganization. Components of lease expense are as follows (in thousands): Year Ended December 31, 2020 2019 Operating lease cost $ 35,964 $ 35,752 Short-term lease cost 832 3,414 Variable lease cost 1,465 504 Total lease cost $ 38,261 $ 39,670 Total operating lease expense for the year ended December 31, 2018 was $30.1 million. Supplemental information related to leases is as follows (in thousands, except weighted-average data): Year Ended December 31, 2020 2019 Operating cash flows used for operating leases $ 35,057 $ 39,561 Right-of-use assets obtained in exchange for lease liabilities 10,645 26,248 Weighted-average remaining lease term 5.6 years 6.7 years Weighted-average discount rate 8.94 % 8.68 % Maturities of lease liabilities as of December 31, 2020 are as follows (in thousands): 2021 $ 33,214 2022 32,918 2023 32,248 2024 31,071 2025 29,879 Thereafter 21,635 Total lease payments 180,965 Less: interest (39,771 ) Total lease liability $ 141,194 Amounts recognized in Consolidated Balance Sheets: Accrued liabilities $ 5,072 Other liabilities 23,476 Liabilities subject to compromise 112,646 Total operating lease liability $ 141,194 Operating lease assets, including prepaid rent balances related to the Baker Hughes transaction, totaling $154.8 million and $169.2 million are included in “Other assets” in our Consolidated Balance Sheets as of December 31, 2020 and 2019, respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 13. Related-Party Transactions Transactions with Loews. We were party to a services agreement with Loews, or the Services Agreement, pursuant to which Loews performed certain administrative and technical services on our behalf. Such services included internal auditing services and advice and assistance with respect to obtaining insurance. Under the Services Agreement, we were required to reimburse Loews for (i) allocated personnel cost (such as salaries, employee benefits and payroll taxes) of the Loews personnel actually providing such services and (ii) all out-of-pocket expenses related to the provision of such services. On April 24, 2020, our Services Agreement with Loews was terminated by mutual agreement. We have since retained unrelated third parties to assist us with some of these services, including services related to internal audit functions. We were charged $0.3 million, $0.7 million and $0.6 million by Loews for these support functions related to the years ended December 31, 2020, 2019 and 2018, respectively. |
Restructuring and Separation Co
Restructuring and Separation Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Separation Costs | 14. Restructuring and Separation Costs Prepetition Restructuring Charges . We engaged financial and legal advisors to assist us in, among other things, analyzing various strategic alternatives to our capital structure, leading to the commencement of the Chapter 11 Cases in the Bankruptcy Court on April 26, 2020. Prior to the Petition Date, we incurred $7.4 million in legal and other professional advisor fees in connection with the consideration of restructuring alternatives, including the preparation for filing of the Chapter 11 Cases and related matters. We have reported these amounts in “Restructuring and separation costs” in our Consolidated Statements of Operations for the year ended December 31, 2020. Professional fees in connection with the Chapter 11 Cases after the Petition Date are reported in “Reorganization items, net” in our Consolidated Statements of Operations for the year ended December 31, 2020. See Note 2. Reductions in Force. 2020 . In April 2020, we initiated a plan to reduce the number of employees in our world-wide organization in an effort to restructure our business operations and lower operating costs. During the year ended December 31, 2020, we incurred $10.3 million, primarily for severance and related costs associated with a reduction in personnel in our corporate offices, warehouse facilities and certain of our international shorebase locations. We have reported these amounts in “Restructuring and separation costs” in our Consolidated Statements of Operations for the year ended December 31, 2020. 2018 . In late 2017, in response to a downturn in the offshore drilling market, combined with changes to the size and composition of our drilling fleet since 2015, our management approved and initiated a reduction in workforce at our onshore bases and corporate facilities. During 2018, we incurred $5.0 million in severance and related costs for redundant employees identified in 2018 in connection with the restructuring plan and paid $12.4 million in previously accrued costs. During 2019, all remaining obligations under the restructuring plan were settled. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act. The CARES Act allows a carryback of net operating losses generated in 2018, 2019 and 2020 to each of the five preceding taxable years. As a result of the carryback, we recognized a tax benefit of $9.7 million due to a partial release of a previously recognized valuation allowance and tax rate change. The Chapter 11 Cases may have a material impact on our tax attributes, the full extent of which will not be known until a plan of reorganization is finalized. Cancellation of indebtedness income resulting from the Chapter 11 Cases may reduce our tax attributes including, but not limited to, net operating loss carryforwards, foreign tax credits and depreciable tax basis of our offshore drilling rigs. In addition, the utilization of any remaining tax attributes could potentially be limited in future periods should the plan of reorganization result in an ownership change under Internal Revenue Code Section 382. Several of our rigs are owned by Swiss branches of entities incorporated in the United Kingdom, or U.K., that have historically been taxed under a special tax regime pursuant to Swiss corporate income tax rules. On September 3, 2019, the Swiss federal government, along with the Canton of Zug, enacted tax legislation, which we refer to as Swiss Tax Reform, effective as of January 1, 2020. Swiss Tax Reform significantly changed Swiss corporate income tax rules by, among other things, abolishing special tax regimes. The legislation also provides transition rules under which companies can maintain their current basis of taxation through January 1, 2022. The abolition of special tax regimes will require us to determine our Swiss tax liability on a net income basis beginning on January 1, 2022, thus also requiring deferred taxes to be computed on the difference between the Swiss tax basis and U.S. GAAP basis of certain items, including property, plant and equipment. There are still many uncertainties in the application of Swiss Tax Reform, including the values to be used to measure depreciable property. Therefore, we have recorded a $187.0 million net deferred tax asset for the difference in basis of certain of our rigs between Swiss tax and U.S. GAAP, offset, where appropriate, by a reserve for an uncertain tax position. As further clarification is issued by the Swiss tax authorities, deferred tax balances and the reserve for uncertain tax positions may need to be adjusted. The potential changes could have a material effect on our consolidated financial statements. In 2019, the Internal Revenue Service, or IRS, issued final regulations with respect to the calculation of the toll charge associated with the deemed repatriation of previously deferred earnings of our non-U.S. subsidiaries, or Transition Tax, in response to the Tax Cuts and Jobs Act enacted in 2017, commonly referred to as the Tax Reform Act. Based on the new regulations, we recorded a net tax benefit of $14.2 million in the second quarter of 2019, primarily to reverse a previously recorded uncertain tax position related to the Transition Tax. Consequently, our revised net tax benefit associated with the Tax Reform Act is $34.5 million, which now consists of (i) a $38.0 million charge relating to the one-time mandatory repatriation of previously deferred earnings of certain non-U.S. subsidiaries that are owned either wholly or partially by our U.S. subsidiaries, inclusive of the utilization of certain tax attributes and (ii) a $72.5 million credit resulting from the determination and re-measurement of our net U.S. deferred tax liabilities at the lower corporate income tax rate. Our income tax expense is a function of the mix between our domestic and international pre-tax earnings or losses, the mix of international tax jurisdictions in which we operate and recognition of valuation allowances for deferred tax assets for which the tax benefits are not likely to be realized. Certain of our rigs are owned and operated, directly or indirectly, by DFAC. Our management has determined that we will no longer permanently reinvest foreign earnings. The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 31, 2020 2019 2018 Federal – current $ (11,844 ) $ (13,810 ) $ 20,107 State – current (12 ) 19 2 Foreign – current 9,898 25,899 9,531 Total current (1,958 ) 12,108 29,640 Federal – deferred (7,431 ) (67,015 ) (75,279 ) Foreign – deferred (11,797 ) 10,107 (714 ) Total deferred (19,228 ) (56,908 ) (75,993 ) Total $ (21,186 ) $ (44,800 ) $ (46,353 ) The difference between actual income tax expense and the tax provision computed by applying the statutory federal income tax rate to income before taxes is attributable to the following (in thousands): Year Ended December 31, 2020 2019 2018 (Loss) income before income tax expense: U.S. $ (336,880 ) $ (339,072 ) $ (266,855 ) Foreign (939,210 ) (62,942 ) 40,230 $ (1,276,090 ) $ (402,014 ) $ (226,625 ) Expected income tax benefit at federal statutory rate $ (267,979 ) $ (84,423 ) $ (47,591 ) Effect of tax rate changes (7,003 ) (74,168 ) 1,763 Reorganization items 7,871 — — Post-petition interest expense (16,778 ) — — Effect of foreign operations 136,262 3,129 15 Valuation allowance 17,331 11,650 11,929 Uncertain tax positions, settlements and adjustments relating to prior years 107,148 96,960 (15,777 ) Other 1,962 2,052 3,308 Income tax benefit $ (21,186 ) $ (44,800 ) $ (46,353 ) Deferred Income Taxes. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards, or NOLs $ 285,910 $ 253,973 Foreign tax credits 34,089 43,026 Disallowed interest deduction 66,395 40,777 Worker’s compensation and other current accruals 5,644 6,250 Deferred deductions 7,749 12,345 Deferred revenue 11,240 7,209 Operating lease liability 9,156 5,461 Other 12,967 4,367 Total deferred tax assets 433,150 373,408 Valuation allowance (203,950 ) (186,620 ) Net deferred tax assets 229,200 186,788 Deferred tax liabilities: Property, plant and equipment (239,576 ) (225,643 ) Mobilization (7,422 ) (2,245 ) Right-of-use assets (9,603 ) (5,461 ) Other (937 ) (967 ) Total deferred tax liabilities (257,538 ) (234,316 ) Net deferred tax liability $ (28,338 ) $ (47,528 ) Net Operating Loss Carryforwards . As of December 31, 2020, we recorded a deferred tax asset of $285.9 million for the benefit of NOL carryforwards, comprised of $217.2 million related to our U.S. losses and $68.7 million related to our international operations. Approximately $215.9 million of this deferred tax asset relates to NOL carryforwards that have an indefinite life. The remaining $70.0 million relates to NOL carryforwards in several of our foreign subsidiaries, as well as in the U.S. Unless utilized, these NOL carryforwards will expire between 2024 and 2038. Foreign Tax Credits. As of December 31, 2020, we recorded a deferred tax asset of $34.1 million for the benefit of foreign tax credits in the U.S., all of which will expire, unless utilized, between 2024 to 2029. Valuation Allowances. We record a valuation allowance on a portion of our deferred tax assets not expected to be ultimately realized. During the years ended December 31, 2020, 2019 and 2018, we established valuation allowances related to net operating losses, foreign tax credits and other deferred tax assets of $69.2 million, $30.7 million and $35.2 million, respectively. During the years ended December 31, 2020, 2019 and 2018, we released valuation allowances in various jurisdictions of $51.9 million, $19.0 million and $23.3 million, respectively. The valuation allowance was also reduced by a $6.2 million adjustment to retained earnings at January 1, 2018 in connection with our adoption of ASU 2016-16. See Note 1 “General Information - Income Taxes. As of December 31, 2020, valuation allowances aggregating $204.0 million have been recorded for our net operating losses, foreign tax credits and other deferred tax assets for which the tax benefits are not likely to be realized. Unrecognized Tax Benefits. Our income tax returns are subject to review and examination in the various jurisdictions in which we operate, and we are currently contesting various tax assessments. We accrue for income tax contingencies, or uncertain tax positions, that we believe are not likely to be realized. A rollforward of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Balance, beginning of period $ (118,884 ) $ (55,943 ) $ (81,864 ) Additions for current year tax positions (100,780 ) (85,970 ) (2,906 ) Additions for prior year tax positions (1,559 ) (2,113 ) (20,943 ) Reductions for prior year tax positions 2,944 23,267 49,175 Reductions related to statute of limitation expirations 3,653 1,875 595 Balance, end of period $ (214,626 ) $ (118,884 ) $ (55,943 ) The addition for current year tax positions in 2020 is due to a change in Switzerland tax legislation enacted in 2019. Due to the uncertainties regarding the application of Swiss Tax Reform, including the values to be used to measure depreciable property, a liability for an uncertain tax position was recorded in the amount of $ 100.8 million in 2020 and $ 86.2 million in 2019. The $23.3 million reduction in 2019 for prior year tax positions is mainly due to reversal of an uncertain tax position recorded for the one-time mandatory repatriation provision of the Tax Reform Act, following final regulations issued by the IRS in June 2019. The $20.9 million addition for prior year tax positions in 2018 , as well as the $49.2 million reduction for prior year tax positions are all primarily due to uncertainty associated with the enactment of the Tax Reform Act and subsequent clarification issued by the IRS related to the positions in question. At December 31, 2020, $0.6 million, $193.2 million and $56.3 million of the net liability for uncertain tax positions were reflected in “Other assets,” “Deferred tax liability” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2019, $0.5 million, $91.1 million and $58.3 million of the net liability for uncertain tax positions were reflected in “Other assets,” “Deferred tax liability” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. Of the net unrecognized tax benefits at December 31, 2020, 2019 and 2018, $249.0 million, $148.8 million and $81.6 million, respectively, would affect the effective tax rates if recognized. At December 31, 2020, the amount of accrued interest and penalties related to uncertain tax positions was $6.0 million and $19.0 million, respectively. At December 31, 2019, the amount of accrued interest and penalties related to uncertain tax positions was $4.0 million and $16.5 million, respectively. Interest expense recognized during the years ended December 31, 2020, 2019 and 2018 related to uncertain tax positions was $1.9 million, $1.0 million and $0.1 million, respectively. Penalties recognized during the years ended December 31, 2020, 2019 and 2018 related to uncertain tax positions were $1.1 million, $0.3 million and $(0.6) million, respectively. We expect the statute of limitations for the 2015 through 2017 tax years to expire in 2021 for various of our subsidiaries operating in Mexico, Trinidad and the United States. We anticipate that the related unrecognized tax benefit will decrease by $4.5 million at that time. Tax Returns and Examinations. We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various foreign jurisdictions. Tax years that remain subject to examination by these jurisdictions include the year 2000 and the years 2009 to 2019. We are currently under audit in Australia, Brazil, Egypt, Equatorial Guinea, Malaysia, Mexico and Romania. We do not anticipate that any adjustments resulting from the tax audit of any of these years will have a material impact on our consolidated results of operations, financial condition or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 16. Employee Benefit Plans Defined Contribution Plans We maintain defined contribution retirement plans for our U.S., U.K., and third-country national (or TCN) employees. The plan for our U.S. employees, or the 401k Plan, is designed to qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended, or the Code. Under the 401k Plan, each participant may elect to defer taxation on a portion of his or her eligible earnings, as defined by the 401k Plan, by directing his or her employer to withhold a percentage of such earnings. A participating employee may also elect to make after-tax contributions to the 401k Plan. During 2020, 2019 and 2018, we matched 100% of the first 5% of each employee’s qualifying annual compensation contributed to the 401k Plan on a pre-tax or Roth elective deferral basis in each respective year. Participants are fully vested in the employer match immediately upon enrollment in the 401k Plan. We ceased matching contributions to the 401k Plan effective November 2020. For the years ended December 31, 2020, 2019 and 2018, our provision for contributions was $6.2 million, $9.1 million and $8.0 million, respectively. The defined contribution retirement plan for our U.K. employees provides that we make annual contributions in an amount equal to the employee's contributions generally up to a maximum percentage of the employee's defined compensation per year. Our contribution during 2020, 2019 and 2018 for employees working in the U.K. sector of the North Sea was 6% of the employee’s defined compensation. Our provision for contributions was $1.8 million, $2.1 million and $1.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Effective December 2020, we reduced our matching contribution to 4% of the employee’s defined compensation. The defined contribution retirement plan for our TCN employees, or International Savings Plan, is similar to the 401k Plan. During 2020, 2019 and 2018, we matched 5% of each employee’s compensation contributed to the International Savings Plan in each respective year. We ceased matching contributions to the International Savings Plan effective November 2020. Our provision for contributions to the plan was $0.2 million in 2020 and $0.4 million in each of the years ended December 31, 2019 and 2018. Deferred Compensation and Supplemental Executive Retirement Plan Our Amended and Restated Diamond Offshore Management Company Supplemental Executive Retirement Plan, or Supplemental Plan, provides benefits to a select group of our management or other highly compensated employees to compensate such employees for any portion of the applicable percentage of the base salary contribution and/or matching contribution under the 401k Plan that could not be contributed to that plan because of limitations within the Code. We ceased matching contributions to the Supplemental Plan effective January 2020. Our provision for contributions to the Supplemental Plan for 2020, 2019 and 2018 was $0, $0.1 million and $0.1 million, respectively. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 17. Segments and Geographic Area Analysis Although we provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics due to the nature of the revenue-earning process as it relates to the offshore drilling industry over the operating lives of our drilling rigs. Our drilling rigs are highly mobile and may be moved to other markets throughout the world in response to market conditions or customer needs. At December 31, 2020, our active drilling rigs were located offshore three countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed. The following tables provide information about disaggregated revenue by equipment-type and country (in thousands): Year Ended December 31, 2020 Total Contract Drilling Revenues (1) Revenues Related to Reimbursable Expenses Total United States $ 321,150 $ 13,262 $ 334,412 Brazil 155,436 (18 ) 155,418 United Kingdom 112,121 8,929 121,050 Australia 63,876 13,271 77,147 Malaysia (2) 40,170 5,490 45,660 Total $ 692,753 $ 40,934 $ 733,687 Year Ended December 31, 2019 Total Contract Drilling Revenues (1) Revenues Related to Reimbursable Expenses Total United States $ 507,759 $ 7,881 $ 515,640 Brazil 191,519 83 191,602 United Kingdom 149,724 14,036 163,760 Australia 85,932 23,710 109,642 Total $ 934,934 $ 45,710 $ 980,644 (1) Contract drilling revenue for 2020 and 2019 was entirely attributable to our floater rigs (drillships and semisubmersibles). (2) Revenue earned by the Ocean Monarch during a standby period in Malaysia while awaiting clearance to begin operations in Myanmar waters. Year Ended December 31, 2018 Floater Rigs Jack-up Rigs (1) Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 628,574 $ 8,413 $ 636,987 $ 7,436 $ 644,423 Brazil 170,839 — 170,839 (26 ) 170,813 United Kingdom 84,749 — 84,749 7,738 92,487 Australia 53,170 — 53,170 7,612 60,782 Malaysia 114,228 — 114,228 (210 ) 114,018 Other countries (2) — — — 692 692 Total $ 1,051,560 $ 8,413 $ 1,059,973 $ 23,242 $ 1,083,215 (1) Loss-of-hire insurance proceeds related to early contract terminations for two jack-up rigs that were disposed of in previous years. (2) Countries that individually comprise less than 5% of total revenues. The following table presents the locations of our long-lived tangible assets by country as of December 31, 2020, 2019 and 2018. A substantial portion of our assets is comprised of rigs that are mobile, and therefore asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the country in which they were expected to operate (in thousands). December 31, 2020 (1) 2019 2018 (1) Drilling and other property and equipment, net: United States $ 2,162,488 $ 2,227,934 $ 2,245,989 International: Australia 722,389 570,964 242,929 Spain 686,436 — — United Kingdom 248,500 1,061,585 1,083,540 Myanmar 207,451 — — Brazil 87,543 883,607 923,355 Singapore 5,819 404,420 366,798 Malaysia 29 2,037 318,191 Other countries (2) 2,154 2,281 3,420 1,960,321 2,924,894 2,938,233 Total $ 4,122,809 $ 5,152,828 $ 5,184,222 (1) During 2020 and 2018, we recorded aggregate impairment losses of $842.0 million and $27.2 million, respectively, to write down certain of our drilling rigs and related equipment with indicators of impairment to their estimated recoverable amounts. (2) Countries with long-lived assets that individually comprise less than 5% of total d rilling and other property and equipment, net of accumulated depreciation . Major Customers Our customer base includes major and independent oil and gas companies and government-owned oil companies. Revenues from our major customers for the years ended December 31, 2020, 2019 and 2018 that contributed more than 10% of our total revenues are as follows: Year Ended December 31, Customer 2020 2019 2018 Petróleo Brasileiro S.A. 21.2 % 19.5 % 15.8 % BP 20.6 % 3.1 % 10.5 % Occidental (formerly Anadarko) 20.1 % 20.6 % 33.8 % Hess Corporation 10.7 % 28.9 % 25.0 % Shell 10.1 % 5.2 % 1.0 % |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 18. Subsequent Event On January 22, 2021, the Debtors entered into the PSA with certain holders of the Company’s Senior Notes party thereto (collectively, the Consenting Noteholders), and certain holders of the RCF Claims under the Company’s Revolving Credit Agreement (collectively, the Consenting RCF Lenders and, together with the Consenting Noteholders, the Consenting Stakeholders). Concurrently, the Debtors entered into the Backstop Agreement (as defined in the PSA) with certain holders of Senior Notes and also entered into the Commitment Letter (as defined below) with certain holders of RCF Claims. The PSA requires the Consenting Stakeholders to support the proposed financial restructuring (or the Restructuring) of the Debtors consistent with the terms and conditions set forth in the Plan, the Backstop Agreement and the commitment letter for the Exit Revolving Credit Facility, as defined below, (or the Commitment Letter). The Debtors have agreed to seek approval of the Plan and complete their restructuring efforts. The PSA also provides for termination by the parties upon the occurrence of certain events. The PSA and the Plan contemplate a comprehensive deleveraging and restructuring of the Company’s balance sheet. The Company entered into the PSA with holders of over 70% of each of the Senior Notes and the RCF Claims, with both groups of stakeholders agreeing to provide exit financing. • Entrance into new exit financing facilities upon the Debtors’ emergence consisting of the following, which is described further below under “– Exit Facilities”: (a) a $300 million to $400 million aggregate principal amount first lien, first out exit revolving credit facility, or the Exit Revolving Credit Facility; (b) a $100 million to $200 million aggregate principal amount first lien, last out exit term loan facility, or the Exit Term Loan Facility; and (c) $110 million aggregate principal amount in first lien, last out exit notes, or the Exit Notes ($75.0 million of which will be issued upon emergence and $35.0 million of which will be available through a delayed draw mechanism, in each case, as more fully described below in “– Exit Facilities”), plus $9.9 million aggregate principal amount of any additional Exit Notes issued on account of the Commitment Premium (as defined in the Backstop Agreement), as more fully described below in“– Exit Facilities”; • Equitization of funded debt to the holders of the Senior Notes for their pro rata share of 70% of the reorganized Company’s equity; • • Payment in full or reinstatement of all general unsecured claims (including trade creditors); • Cancellation of all existing common equity interests; and • Adjustment, reinstatement or discharge of intercompany claims at the Debtor’s discretion in consultation with the Ad Hoc Group (as defined in the Plan). The Plan provides, among other things, that the following holders of claims receive the following recovery on the emergence date (unless such holder agrees to less favorable treatment): • Holders of the RCF Claims will be refinanced by the Exit Revolving Credit Facility and the Exit Term Loan Facility, and holders of RCF Claims will receive either: (a) if such holder elects to participate in the Exit Revolving Credit Facility, a combination of its pro rata share of approximately $275 million to $280 million in cash (or the RCF Cash Paydown), its pro rata share of up to $100 million of funded loans under the Exit Revolving Credit Facility, and, to the extent its claims are not satisfied in full by such cash payment and funded loans under the Exit Revolving Credit Facility, a pro rata share of the funded loans under the Exit Term Loan Facility; or (b) if such holder does not elect to participate in the Exit Revolving Credit Facility, a combination of its pro rata share of the funded loans under the Exit Term Loan Facility and/or cash to the extent the RCF Cash Paydown has not been fully allocated to holders of RCF Claims that elect to participate in the Exit Revolving Credit Facility. The exact amount of the RCF Cash Paydown is subject to finalizing the amount of post-petition interest due to holders of RCF Claims on the emergence date; • (a) certain private placements (or the Private Placements), set forth in the Backstop Agreement and (b) two fully backstopped rights offerings (or the Rights Offerings), • • will be cancelled and will be of no further force or effect; • Holders of the Company’s existing common equity • • The PSA contains certain covenants on the part of the Debtors and the Consenting Stakeholders, including that the Consenting Stakeholders shall, among other things, support and take all commercially reasonable actions that are necessary and appropriate to facilitate the confirmation of the Plan and consummation of the Debtors’ restructuring in accordance with the PSA. The PSA further provides that the Consenting Stakeholders shall have the right, but not the obligation, to terminate the PSA upon the occurrence of certain events, including the failure of the Debtors to achieve certain milestones . The Company is subject to numerous conditions precedent to its emergence from Chapter 11 protection. Such conditions include the completion of restructuring steps described in the PSA and the Plan, the completion of the Exit Revolving Credit Facility and the Exit Term Loan Facility, and the issuance of Exit Notes pursuant to the Rights Offerings Procedures and the Backstop Agreement, among other governmental and court-ordered administrative conditions. Exit Facilities As noted above, the PSA contemplates that the reorganized Company will enter into the Exit Revolving Credit Facility, the Exit Term Loan Facility and the Exit Notes upon emergence. The Exit Revolving Credit Facility will be fully committed, with up to $100 million drawn as of the emergence date. The Exit Revolving Credit Facility will mature in 2026. Interest on the Exit Revolving Credit Facility will accrue at LIBOR + 425 bps and is payable in cash. In connection with the Exit Revolving Credit Facility, the Debtors have secured commitments from certain holders of RCF Claims pursuant to the Commitment Letter that ensures at least $300 million in aggregate principal amount of the Exit Revolving Credit Facility is fully committed to upon the Debtors’ emergence from the Chapter 11 Cases in accordance with the PSA and the Plan. As consideration for entering into the Commitment Letter and providing such commitments, the Debtors will pay to the Commitment Parties (as defined in the Commitment Letter) a commitment fee of approximately $3.5 million payable in kind in the form of additional drawn commitments under the Exit Revolving Credit Facility, which shall increase both the amount of drawn and total commitments thereunder, in exchange for providing such new money commitments. The Exit Term Loan Facility will mature in 2027. At the reorganized Company’s option, interest on the Exit Term Loan Facility will accrue at a cash pay rate of LIBOR + 600 bps, a payment in kind, or PIK, rate of LIBOR + 1000 bps, or a 50/50 combined cash and PIK rate of LIBOR + 800 bps. The Exit Term Loan Facility will rank pari passu with the Exit Notes. As of the emergence date, $75.0 million of the Exit Notes will be issued and outstanding excluding the $9.9 million of Exit Notes to be issued on account of the Commitment Premium (as defined in the Backstop Agreement), while $35.0 million of the Exit Notes will remain fully committed but undrawn as of the emergence date and will be available through a delayed draw mechanism pursuant to the terms of the Exit Notes (or the Delayed Draw Exit Notes). The reorganized Company will pay a ticking fee of 3% per annum on the aggregate principal amount of any undrawn Delayed Draw Exit Notes, which shall be payable in cash semi-annually in arrears commencing on the date that is six months from the Debtors’ emergence from the Chapter 11 Cases until the earliest of (i) the date of the issuance of the Delayed Draw Exit Notes, (ii) the date that is 24 months prior to the scheduled maturity of the Exit Notes and (iii) the date that the Delayed Draw Subscription Agreement (as defined in the Backstop Agreement) is terminated in accordance with its terms. The Exit Notes will mature in 2027. At the reorganized Company’s option, interest on the Exit Notes will accrue at a cash pay rate of 9.0%, a PIK rate of 13.0%, or a 50/50 combined cash and PIK rate of 11.0%. The Company may redeem the Exit Notes, in whole or in part, at its option at any time on at least 15 days but not more than 60 days prior written notice at the applicable redemption prices set forth in the relevant indenture, subject to the limitations on the Company’s ability to exercise such redemption contained in the Exit Revolving Credit Facility and the Exit Term Loan Facility. Backstop Commitments and Rights Offering In connection with the Exit Notes, the Debtors have secured commitments from certain holders of the Senior Notes pursuant to the Backstop Agreement that ensures the Exit Notes are fully funded or committed to upon the Debtors’ emergence from the Chapter 11 Cases pursuant to (a) the Private Placements set forth in the Backstop Agreement for Exit Notes in an aggregate principal amount of $ 41,250,000 and (b) the Rights Offerings pursuant to which eligible holders of Senior Notes will receive subscription rights to purchase or commit to purchase $68,750,000 of the Exit Notes in accordance with and pursuant to the Plan, subject to the terms and conditions of the Rights Offering Procedures (as defined in the PSA) . Any Exit Notes not subscribed to by the eligible holders of Senior Notes in the Rights Offerings will be funded or committed to upon the Debtor’s emergence from the Chapter 11 Cases by the Commitment Parties (as defined in the Backstop Agreement). As consideration for entering into the Backstop Agreement and providing the commitments in the Private Placements and Rights Offerings , the Debtors will pay to the Financing Parties (as defined in the Backstop Agreement) a commitment premium equal to 9.0 % of the aggregate amount of commitments provided by the respective Backstop Parties (as defined in the Backstop Agreement) under the Backstop Agreement, payable in kind in the form of additional Exit Notes. Eligible holders of Senior Notes that elect to join the Backstop Agreement are eligible to participate in the Private Placements, but will not receive a pro rata portion of the Commitment Premium. The Plan, the Rights Offering Procedures, the Backstop Agreement, and the Commitment Letter remain subject to approval by the Bankruptcy Court. Accordingly, no assurance can be given that the Restructuring described in the PSA and the Plan will be consummated. Pressure Control by the Hour Contracts The Debtors will make a determination on whether to assume or reject the PCbtH Contracts (as defined in the Plan) following the conclusion of the PCbtH Litigation (as defined in the Plan), unless the applicable parties are able to reach a consensual resolution prior to the conclusion of the litigation. Disclosure Statement On January 22, 2021, the Debtors filed the Plan and a related disclosure statement (or the Disclosure Statement), with the Bankruptcy Court. On January 23, 2021, the Debtors also filed a motion seeking Bankruptcy Court approval of the Debtors’ Disclosure Statement prepared in connection with soliciting votes to accept the Plan and a separate motion seeking authority to enter into the Backstop Agreement and the Commitment Letter and approval of the procedures to conduct the Rights Offerings. A hearing on such motions is scheduled for February 26, 2021 at 9:30 a.m. (Central Time) before the Bankruptcy Court. The foregoing descriptions of the PSA, the Backstop Agreement, and the Commitment Letter do not purport to be complete and are qualified in their entirety by reference to the PSA, including the Backstop Agreement, the Commitment Letter and the other exhibits thereto, a copy of which is filed as Exhibit 10.23 to this report. |
General Information (Policies)
General Information (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Diamond Offshore Drilling, Inc. and our wholly-owned subsidiaries after elimination of intercompany transactions and balances. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States (or U.S.), or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. |
Changes in Accounting Principles | Changes in Accounting Principles Credit Losses Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to measure credit losses of certain financial assets, including trade receivables, utilizing a Leases. Leases We adopted ASU 2016-02 effective January 1, 2019 using an optional transition method requiring leases existing at, or entered into after, January 1, 2019 to be recognized and measured under the new accounting standard. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting for leases. In our adoption of ASU 2016-02, we also utilized a transition practical expedient package whereby we did not reassess (i) whether any of our expired or existing contracts contain a lease, (ii) the classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The adoption of this standard resulted in the recording of operating lease assets and offsetting operating lease liabilities of $146.8 million as of January 1, 2019, with no related impact on our annual Consolidated Statement of Stockholders’ Equity. See Note 12. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 . Revenue Recognition Revenue from Contracts with Customers (Topic 606) We adopted ASU 2014-09 and its related amendments, or collectively Topic 606, effective January 1, 2018 using the modified retrospective implementation method. Accordingly, we have applied the five-step method outlined in Topic 606 for determining when and how revenue is recognized to all contracts that were not completed as of the date of adoption. Revenues for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported under the previous revenue recognition guidance. For contracts that were modified before the effective date, we have considered the modification guidance within the new standard and determined that the revenue recognized and contract balances recorded prior to adoption for such contracts were not impacted. While Topic 606 requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, its adoption has not had a material impact on the measurement or recognition of our revenues. Our adoption of ASU 2014-09 represents a change in accounting principle and therefore, we have recorded the cumulative effect of adopting Topic 606 as an increase to opening retained earnings on January 1, 2018. This adjustment represents an accrual for the earned portion of demobilization revenue expected to be received for contracts not completed as of December 31, 2017, which was not recordable under previous revenue recognition guidance until completion of the demobilization activities. See Note 3. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash to be cash equivalents. The effect of exchange rate changes on cash balances held in foreign currencies was not material for the years ended December 31, 2020, 2019 and 2018. |
Drilling and Other Property and Equipment | Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income currently while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. Significant judgments, assumptions and estimates may be required in determining whether or not such replacements and betterments meet the criteria for capitalization and in determining useful lives and salvage values of such assets . Changes in these judgments, assumptions and estimates could produce results that differ from those reported . During the years ended December 31, 2020 and 2019 , we capitalized $ 137.4 million and $ 343.8 million, respectively, in replacements and betterments of our drilling fleet . Costs incurred for major rig upgrades and/or the construction of rigs are accumulated in construction work-in-progress, with no depreciation recorded on the additions, until the month the upgrade or newbuild is completed and the rig is placed in service. Upon retirement or sale of a rig, the cost and related accumulated depreciation are removed from the respective accounts and any gains or losses are reported in our Consolidated Statements of Operations as “(Gain) loss on disposition of assets.” Depreciation is recognized up to applicable salvage values by applying the straight-line method over the remaining estimated useful lives from the year the asset is placed in service. Drilling rigs and equipment are depreciated over their estimated useful lives ranging from 3 to 30 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, cold stacking a rig, the expectation of cold stacking a rig in the near term, contracted backlog of less than one year for a rig, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project, reactivation or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm-stacked or cold-stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm-stacked or cold-stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance, inspection or other reactivation costs associated with a rig returning to work; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability-weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes and then assesses its future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation , further sustained decline in oil and gas prices, cancelations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, capital expenditures required due to advances in offshore drilling technology, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations . Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different . See Note 4 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We believe that the carrying amount of our current financial instruments approximates fair value because of the short maturity of these instruments. See Note 8. |
Debt Issuance Costs | Debt Issuance Costs Deferred costs associated with our credit facilities are presented in “Other assets” in our Consolidated Balance Sheets at December 31, 2020 and 2019 and amortized as interest expense over the respective terms of the credit facilities. During 2018, we paid $5.7 million in debt issuance and arrangement fees in connection with our credit facilities. Deferred costs associated with our senior notes are presented in our Consolidated Balance Sheets at December 31, 2019 as a reduction to the related long-term debt and are amortized over the respective terms of the related debt. Subsequent to the commencement of bankruptcy proceedings in April 2020, we wrote off $3.9 million in deferred arrangement fees associated with our Revolving Credit Facility (as defined below) and $23.7 million in unamortized discount and debt issuance costs associated with our senior indebtedness during the year ended December 31, 2020 in accordance with FASB Accounting Standards Codification Topic No. 852 – Reorganizations , or ASC 852. The write-off of fees and unamortized discount in 2020 were reported as “Reorganization items, net” in our Consolidated Statements of Operations. |
Income Taxes | Income Taxes We account for income taxes in accordance with accounting standards that require the recognition of the amount of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been currently recognized in our financial statements or tax returns. In each of our tax jurisdictions we recognize a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax asset or liability for the estimated future tax effects attributable to temporary differences and carryforwards. Deferred tax assets are reduced by a valuation allowance, if necessary, which is determined by the amount of any tax benefits that, based on available evidence, are not expected to be realized under a “more likely than not” approach. Deferred tax assets and liabilities are classified as noncurrent in a classified statement of financial position. We make judgments regarding future events and related estimates especially as they pertain to the forecasting of our effective tax rate, the potential realization of deferred tax assets such as utilization of foreign tax credits, and exposure to the disallowance of items deducted on tax returns upon audit. We record both interest and penalties related to accrued uncertain tax positions in “Income tax benefit” in our Consolidated Statements of Operations. Liabilities for uncertain tax positions, including any interest and penalties, are denominated in the currency of the related tax jurisdiction and are revalued for changes in currency exchange rates. The revaluation of such liabilities for uncertain tax positions is reported in “Income tax benefit” in our Consolidated Statements of Operations. See Note 15. |
Comprehensive Loss | Comprehensive Loss Comprehensive (loss) income is the change in equity of a business enterprise during a period from transactions and other events and circumstances except those transactions resulting from investments by owners and distributions to owners. Comprehensive loss for the three years ended December 31, 2020, 2019 and 2018 includes net loss and unrealized holding gains and losses on marketable securities and financial derivatives designated as cash flow accounting hedges. |
Foreign Currency | Foreign Currency Our functional currency is the U.S. dollar. Transactions incurred in currencies other than the U.S. dollar are subject to gains or losses due to fluctuations in those currencies. We report foreign currency transaction gains and losses as “Foreign currency transaction (loss) gain” in our Consolidated Statements of Operations. The revaluation of assets and liabilities related to foreign income taxes, including deferred tax assets and liabilities and uncertain tax positions, including any interest and/or penalties, is reported in “Income tax benefit” in our Consolidated Statements of Operations. |
Leases and Lease Commitments | In applying ASU 2016-02, we utilize an exemption for short-term leases whereby we do not record leases with terms of one year or less on the balance sheet. We have also made an accounting policy election not to separate lease components from non-lease components for each of our classes of underlying assets, except for subsea equipment, which includes the Well Control Equipment discussed above. At inception, the consideration for the overall Well Control Equipment arrangement was allocated between the lease and service components based on an estimation of stand-alone selling price of each component, which maximized observable inputs. The costs associated with the service portion of the agreement are accounted for separately from the cost attributable to the equipment leases based on that allocation and thus, are not included in our right-of-use lease asset or lease liability balances. The non-lease components for each of our other classes of assets generally relate to maintenance, monitoring and security services and are not separated from their respective lease components. See Note 1 1 . The lease term used for calculating our right-of-use assets and lease liabilities is determined by considering the noncancelable lease term, as well as any extension options that we are reasonably certain to exercise. The determination to include option periods is generally made by considering the activity in the region or for the rig corresponding to the respective lease, among other contract-based and market-based factors. We have used our incremental borrowing rate to discount future lease payments as the rate implicit in our leases is not readily determinable. To arrive at our incremental borrowing rate prior to filing of the Chapter 11 Cases, we considered our unsecured borrowings and then adjusted those rates to assume full collateralization and to factor in the individual lease term and payment structure. The incremental borrowing rate for leases entered or modified in 2020 subsequent to the Petition Date was determined primarily based on secured borrowing rates being negotiated in relation to a pending plan of reorganization. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our contract drilling services include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities and/or modifications required for the contract. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services provided within our drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which we provide drilling services. Consideration for activities that are not distinct within the context of our contracts and do not correspond to a distinct time increment within the contract term are allocated across the single performance obligation and recognized ratably over the initial term of the contract (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months). Consideration for activities that correspond to a distinct time increment within the contract term is recognized in the period when the services are performed. The total transaction price is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. See below for further discussion regarding the allocation of the transaction price to the remaining performance obligations. The amount estimated for variable consideration may be constrained (reduced) and is only included in the transaction price to the extent that it is probable that a significant reversal of previously recognized revenue will not occur throughout the term of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside of our control that could result in a significant reversal of revenue as well as the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period as required. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term, and therefore, recognized in line with the contractual rate billed for the services provided for any given hour. Mobilization/Demobilization Revenue. We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization and demobilization of our rigs. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to contract drilling revenue as services are rendered over the initial term of the related drilling contract. Demobilization revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized in earnings ratably over the initial term of the contract with an offset to an accretive contract asset. In some contracts, there is uncertainty as to the likelihood and amount of expected demobilization revenue to be received. For example, contractual provisions may require that a rig demobilize a certain distance before the demobilization revenue is payable or the amount may vary dependent upon whether or not the rig has additional contracted work within a certain distance from the wellsite. Therefore, the estimate for such revenue may be constrained, as described above, depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on our past experience and knowledge of market conditions. Contract Preparation Revenue. Some of our drilling contracts require downtime before the start of the contract to prepare the rig to meet customer requirements. At times, we may be compensated by the customer for such work (on either a fixed lump-sum or variable dayrate basis). These activities are not considered to be distinct within the context of the contract. We record a contract liability for contract preparation fees received, which is amortized ratably to contract drilling revenue over the initial term of the related drilling contract. Capital Modification Revenue . From time to time, we may receive fees from our customers for capital improvements or upgrades to our rigs to meet contractual requirements (on either a fixed lump-sum or variable dayrate basis). The activities related to these capital modifications are not considered to be distinct within the context of our contracts. We record a contract liability for such fees and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer, as “Revenues related to reimbursable expenses” in our Consolidated Statements of Operations. Such amounts are recognized ratably over the period within the contract term during which the corresponding goods and services are to be consumed. Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Contract asset balances consist primarily of demobilization revenue that we expect to receive and is recognized ratably throughout the contract term, but invoiced upon completion of the demobilization activities. Once the demobilization revenue is invoiced, the corresponding contract asset is transferred to accounts receivable. Contract assets may also include amounts recognized in advance of amounts invoiced due to the blending of rates when a contract has operating dayrates that increase over the initial contract term. Contract liabilities include payments received for mobilization as well as rig preparation and upgrade activities which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. Contract liabilities may also include amounts invoiced in advance of amounts recognized due to the blending of rates when a contract has operating dayrates that decrease over the initial contract term. Contract balances are netted at a contract level, such that deferred revenue for mobilization, contract preparation and capital modifications (contract liabilities) is netted with any accrued demobilization revenue (contract asset) for each applicable contract. The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): December 31, 2020 December 31, 2019 Trade receivables $ 115,732 $ 199,572 Current contract assets (1) 2,870 6,314 Noncurrent contract assets (1) — — Current contract liabilities (deferred revenue) (1) (51,763 ) (9,573 ) Noncurrent contract liabilities (deferred revenue) (1) (5,164 ) (38,531 ) (1) Contract assets and contract liabilities may reflect balances that have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2020 and 2019. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances December 31, 2020 2019 Contract assets, beginning of period $ 6,314 $ 8,939 Contract liabilities, beginning of period (48,104 ) (20,526 ) Net balance at beginning of period (41,790 ) (11,587 ) Decrease due to amortization of revenue that was included in the beginning contract liability balance 35,231 6,952 Increase due to cash received, excluding amounts recognized as revenue during the period (44,081 ) (34,529 ) Increase due to revenue recognized during the period but contingent on future performance 4,748 3,537 Decrease due to transfer to receivables during the period (7,466 ) (5,119 ) Adjustments (699 ) (1,044 ) Net balance at end of period $ (54,057 ) $ (41,790 ) Contract assets at end of period $ 2,870 $ 6,314 Contract liabilities at end of period (56,927 ) (48,104 ) Deferred Contract Costs Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of contracted rigs represent costs of fulfilling a contract as they relate directly to a contract, enhance resources that will be used in satisfying our performance obligations in the future and are expected to be recovered. Such costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such deferred contract costs in the amount of $19.8 million and $2.2 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2020. Deferred contract costs in the amount of $20.0 million and $4.0 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2019. During the years ended December 31, 2020 and 2019, the amount of amortization of such costs was $22.8 million and $96.0 million, respectively. There was no impairment loss in relation to capitalized costs. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as drilling and other property and equipment and depreciated over the estimated useful life of the improvement. Transaction Price Allocated to Remaining Performance Obligations The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of December 31, 2020 (in thousands): For the Years Ending December 31, 2021 2022 Total Mobilization and contract preparation revenue $ 26,521 $ 2,614 $ 29,135 Capital modification revenue 13,906 1,452 15,358 Blended rate and other revenue 14,668 874 15,542 Total $ 55,095 $ 4,940 $ 60,035 The revenue included above consists of expected fixed mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations, as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. Revenue expected to be recognized in the future related to the blending of rates when a contract has operating dayrates that decrease over the initial contract term is also included. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at December 31, 2020. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in Topic 606 and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts, including dayrate revenue. |
Chapter 11 Proceedings (Tables)
Chapter 11 Proceedings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items Incurred | The following table provides information about reorganization items incurred during the year ended December 31, 2020, subsequent to the Petition Date (in thousands): Year Ended December 31, 2020 Professional fees $ 53,517 Write-off of debt issuance costs 27,552 Net gain on settlement with certain unsecured vendors (4,159 ) Total reorganization items, net $ 76,910 Payments of $40.3 million related to professional fees and vendor cancellation costs have been presented as cash outflows from operating activities in our Consolidated Statements of Cash Flows for the year ended December 31, 2020. See Note 5. |
Summary of Liabilities Subject to Compromise | Liabilities subject to compromise at December 31 , 2020 consist of the following (in thousands): December 31, 2020 Debt subject to compromise: Borrowings under Revolving Credit Agreement $ 436,000 3.45% Senior Notes due 2023 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Lease liabilities 112,646 Accrued interest 47,636 Accounts payable 16,725 Other accrued liabilities 1,302 Other liabilities 4,496 Total liabilities subject to compromise $ 2,618,805 |
Debtor-in-Possession Condensed Combined Balance Sheet | Condensed combined financial statements of the Debtors are set forth below. These financial statements exclude the financial statements of the non-Debtor subsidiaries. Transactions and balances of receivables and payables between the Debtors have been eliminated in consolidation. Amounts payable to the non-Debtor subsidiaries are reported in the condensed combined balance sheet of the Debtors. DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED BALANCE SHEET (In thousands) December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 390,407 Restricted cash 24,511 Accounts receivable 123,981 Less: allowance for credit losses (102 ) Accounts receivable, net 123,879 Prepaid expenses and other current assets 50,439 Assets held for sale 1,000 Total current assets 590,236 Drilling and other property and equipment, net of accumulated depreciation 4,112,527 Investments in non-debtor subsidiaries 2,468,384 Other assets 184,955 Total assets $ 7,356,102 LIABILITIES AND DEBTORS’ EQUITY Current liabilities: Accounts payable $ 30,280 Accrued liabilities 130,133 Taxes payable 25,005 Amounts payable to non-debtor subsidiaries 1,057,913 Total current liabilities 1,243,331 Note payable to non-debtor subsidiary 328,000 Deferred tax liability 11,907 Other liabilities 63,674 Total liabilities not subject to compromise 1,646,912 Liabilities subject to compromise 2,618,805 Total debtors’ equity 3,090,385 Total liabilities and debtors’ equity $ 7,356,102 |
Debtor-in-Possession Condensed Combined Statement of Operations | DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENT OF OPERATIONS (In thousands) Year Ended December 31, 2020 Revenues: Contract drilling $ 601,354 Revenues related to reimbursable expenses 40,952 Total revenues 642,306 Operating expenses: Contract drilling, excluding depreciation 538,074 Reimbursable expenses 38,917 Depreciation 319,124 General and administrative 53,039 Impairment of assets 842,016 Restructuring and separation costs 15,634 Gain on disposition of assets (7,208 ) Total operating expenses 1,799,596 Operating loss (1,157,290 ) Other income (expense): Interest income 466 Interest expense (50,586 ) Foreign currency transaction loss (1,757 ) Reorganization items, net (76,910 ) Other, net (431 ) Loss before income tax benefit (1,286,508 ) Income tax benefit 29,093 Net loss $ (1,257,415 ) |
Debtor-in-Possession Condensed Combined Statement of Cash Flows | DIAMOND OFFSHORE DRILLING, INC. AND CERTAIN SUBSIDIARIES PARTY TO THE BANKRUPTCY CASES (DEBTOR-IN-POSSESSION) CONDENSED COMBINED STATEMENT OF CASH FLOWS (In thousands) Year Ended December 31, 2020 Operating activities: Net loss $ (1,257,415 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 319,124 Loss on impairment of assets 842,016 Reorganization items, net 22,106 Gain on disposition of assets (7,208 ) Deferred tax provision (19,467 ) Stock-based compensation expense 5,637 Contract liabilities, net 13,238 Contract assets, net 1,337 Deferred contract costs, net (4,231 ) Long-term employee remuneration programs (3,991 ) Noncurrent collateral deposits (18,262 ) Other assets, noncurrent (7,608 ) Other 3,701 Changes in operating assets and liabilities: Accounts receivable 72,550 Prepaid expenses and other current assets 17,664 Accounts payable and accrued liabilities (1,713 ) Taxes payable (15,712 ) Due to non-debtor subsidiaries 61,697 Net cash provided by operating activities 23,463 Investing activities: Capital expenditures (184,101 ) Capital contribution to non-debtor subsidiary (15,661 ) Proceeds from disposition of assets, net of disposal costs 13,119 Net cash used in investing activities (186,643 ) Financing activities: Borrowings under credit facility 436,000 Net cash provided by financing activities 436,000 Net change in cash, cash equivalents and restricted cash 272,820 Cash, cash equivalents and restricted cash, beginning of period 142,098 Cash, cash equivalents and restricted cash, end of period $ 414,918 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): December 31, 2020 December 31, 2019 Trade receivables $ 115,732 $ 199,572 Current contract assets (1) 2,870 6,314 Noncurrent contract assets (1) — — Current contract liabilities (deferred revenue) (1) (51,763 ) (9,573 ) Noncurrent contract liabilities (deferred revenue) (1) (5,164 ) (38,531 ) (1) Contract assets and contract liabilities may reflect balances that have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2020 and 2019. |
Summary of Significant Changes in Contract Assets and Contract Liabilities Balances | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances December 31, 2020 2019 Contract assets, beginning of period $ 6,314 $ 8,939 Contract liabilities, beginning of period (48,104 ) (20,526 ) Net balance at beginning of period (41,790 ) (11,587 ) Decrease due to amortization of revenue that was included in the beginning contract liability balance 35,231 6,952 Increase due to cash received, excluding amounts recognized as revenue during the period (44,081 ) (34,529 ) Increase due to revenue recognized during the period but contingent on future performance 4,748 3,537 Decrease due to transfer to receivables during the period (7,466 ) (5,119 ) Adjustments (699 ) (1,044 ) Net balance at end of period $ (54,057 ) $ (41,790 ) Contract assets at end of period $ 2,870 $ 6,314 Contract liabilities at end of period (56,927 ) (48,104 ) |
Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of December 31, 2020 (in thousands): For the Years Ending December 31, 2021 2022 Total Mobilization and contract preparation revenue $ 26,521 $ 2,614 $ 29,135 Capital modification revenue 13,906 1,452 15,358 Blended rate and other revenue 14,668 874 15,542 Total $ 55,095 $ 4,940 $ 60,035 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for bad debts, consists of the following (in thousands): December 31, 2020 2019 Trade receivables $ 115,732 $ 199,572 Value added tax receivables 10,781 17,716 Federal income tax receivable 8,420 38,574 Related party receivables 78 166 Other 1,211 287 136,222 256,315 Allowance for credit losses (5,562 ) (5,459 ) Total $ 130,660 $ 250,856 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2020 2019 Deferred contract costs $ 19,808 $ 20,019 Prepaid taxes 16,112 12,475 Rig spare parts and supplies 12,606 18,250 Current contract assets 2,870 6,314 Prepaid insurance 2,446 2,892 Prepaid legal retainers 2,408 — Prepaid rig costs 2,317 2,990 Other 3,708 5,718 Total $ 62,275 $ 68,658 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, 2020 2019 Deferred revenue $ 51,763 $ 9,573 Payroll and benefits 30,296 42,494 Shorebase and administrative costs 17,275 5,275 Rig operating expenses 21,123 37,969 Personal injury and other claims 6,495 7,074 Accrued capital project/upgrade costs 7,075 56,603 Current operating lease liability 5,072 20,030 Interest payable — 28,234 Other 1,689 3,528 Total $ 140,788 $ 210,780 |
Noncash Investing and Financing Activities | Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): December 31, 2020 2019 2018 Accrued but unpaid capital expenditures at period end $ 7,615 $ 56,603 $ 37,234 Common stock withheld for payroll tax obligations (1) 395 1,398 1,301 Cash interest payments 19,843 113,063 113,063 Cash paid for reorganization items, net 40,301 — — Cash income taxes paid (refunded), net: Foreign 11,826 17,821 9,286 U.S. federal (42,462 ) 1,001 (7,389 ) State 36 (15 ) 2 (1) Represents the cost of 131,698, 132,547 and 87,799 shares of common stock withheld to satisfy the payroll tax obligation incurred as a result of the vesting of restricted stock units in 2020, 2019 and 2018, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at December 31, 2020, 2019 and 2018, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Activity Under Stock Plan | The fair value of SARs granted under the Equity Plan (or its predecessor) during each of the years ended December 31, 2020, 2019 and 2018 was estimated using the Black Scholes pricing model with the following weighted average assumptions: Year Ended December 31, 2020 2019 2018 Expected life of SARs (in years) 8 7 7 Expected volatility 127.65 % 39.35 % 32.10 % Risk free interest rate 1.85 % 2.11 % 2.56 % |
Weighted Average Assumptions Used in Estimating Fair Value of Options and SARs | A summary of SARs activity under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In Thousands) Awards outstanding at January 1, 2020 922,230 $ 50.19 Granted 7,000 $ 7.13 Cancelled (160,400 ) $ 56.57 Expired (156,130 ) $ 66.61 Awards outstanding at December 31, 2020 612,700 $ 43.84 3.3 $ — Awards exercisable at December 31, 2020 612,700 $ 43.84 3.3 $ — |
Time-vesting RSUs [Member] | |
Summary of Restricted Stock Units Awarded Under Equity Plan | A summary of activity for time-vesting RSUs under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted -Average Grant Date Fair Value Per Share Nonvested awards at January 1, 2020 533,603 $ 12.58 Granted — $ — Vested (156,819 ) $ 15.64 Cancelled (301,816 ) $ 11.26 Forfeited (63,968 ) $ 11.55 Nonvested awards at December 31, 2020 11,000 $ 11.49 |
Performance-Vesting RSUs [Member] | |
Summary of Restricted Stock Units Awarded Under Equity Plan | A summary of activity for performance-vesting RSUs under the Equity Plan as of December 31, 2020 and changes during the year then ended is as follows: Number of Awards Weighted -Average Grant Date Fair Value Per Share Nonvested awards at January 1, 2020 709,277 $ 14.41 Granted — $ — Vested (325,280 ) $ 16.61 Cancelled (346,001 ) $ 12.58 Forfeited (37,996 ) $ 12.31 Nonvested awards at December 31, 2020 — $ — |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Securities Excluded from Computations of Diluted Loss Per Share | The following table sets forth the stock-based awards excluded from the computations of diluted loss per share Year Ended December 31, 2020 2019 2018 Employee and director: SARs 777 982 1,133 RSUs 464 1,205 1,153 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Nonrecurring and Recurring Basis | Assets measured at fair value are summarized below (in thousands). December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Year Ended (1) Nonrecurring fair value measurements: Impaired assets (2) $ — $ — $ 1,000 $ 1,000 $ 842,016 December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Recurring fair value measurements: Money market funds $ 135,300 $ — $ — $ 135,300 (1) Represents impairment losses of $774.0 million and $68.0 million recognized during the first and fourth quarters of 2020, respectively, related to four semisubmersible rigs which were written down to their estimated fair values. See Note 4. (2) Represents the total book value as of December 31, 2020 of one semisubmersible rig, which was written down to its estimated fair value during the fourth quarter of 2020. See Note 4. |
Fair Values and Related Carrying Values of Our Debt Instruments | Fair values and related carrying values of our Senior Notes (see Note 10) are shown below (in millions). December 31, 2020 December 31, 2019 Fair Value Carrying Value Fair Value Carrying Value 3.45% Senior Notes due 2023 $ 30.6 $ 250.0 $ 212.5 $ 249.6 7.875% Senior Notes due 2025 61.3 500.0 435.0 497.1 5.70% Senior Notes due 2039 61.2 500.0 292.5 497.3 4.875% Senior Notes due 2043 91.9 750.0 408.8 749.0 |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment | Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): December 31, 2020 2019 Drilling rigs and equipment $ 6,987,630 $ 8,004,489 Land and buildings 41,072 64,267 Office equipment and other 83,016 92,289 Cost 7,111,718 8,161,045 Less: accumulated depreciation (2,988,909 ) (3,008,217 ) Drilling and other property and equipment, net $ 4,122,809 $ 5,152,828 |
Credit Agreements and Senior _2
Credit Agreements and Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Senior Notes | At December 31, 2020, our Senior Notes were comprised of the following debt issues (dollars in millions): Aggregate Principal Stated Interest Rate at Issuance Semiannual Interest Debt Issue Amount Maturity Date Coupon Effective Payment Dates 3.45% Senior Notes due 2023 $ 250.0 November 1, 2023 3.45 % 3.50 % May 1 and November 1 7.875% Senior Notes due 2025 $ 500.0 August 15, 2025 7.875 % 8.00 % February 15 and August 15 5.70% Senior Notes due 2039 $ 500.0 October 15, 2039 5.70 % 5.75 % April 15 and October 15 4.875% Senior Notes due 2043 $ 750.0 November 1, 2043 4.875 % 4.89 % May 1 and November 1 |
Summary of Carrying Value of Senior Notes, Net of Unamortized Discount and Debt Issuance Costs | At December 31, 2020 and 2019, the carrying value of our Senior Notes, net of unamortized discount and debt issuance costs, was as follows (in thousands): December 31, 2020 2019 3.45% Senior Notes due 2023 $ 250,000 $ 248,759 7.875% Senior Notes due 2025 500,000 491,655 5.70% Senior Notes due 2039 500,000 493,316 4.875% Senior Notes due 2043 750,000 742,011 Total Senior Notes, net $ 2,000,000 $ 1,975,741 |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense are as follows (in thousands): Year Ended December 31, 2020 2019 Operating lease cost $ 35,964 $ 35,752 Short-term lease cost 832 3,414 Variable lease cost 1,465 504 Total lease cost $ 38,261 $ 39,670 |
Supplemental Information Related to Leases | Supplemental information related to leases is as follows (in thousands, except weighted-average data): Year Ended December 31, 2020 2019 Operating cash flows used for operating leases $ 35,057 $ 39,561 Right-of-use assets obtained in exchange for lease liabilities 10,645 26,248 Weighted-average remaining lease term 5.6 years 6.7 years Weighted-average discount rate 8.94 % 8.68 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 are as follows (in thousands): 2021 $ 33,214 2022 32,918 2023 32,248 2024 31,071 2025 29,879 Thereafter 21,635 Total lease payments 180,965 Less: interest (39,771 ) Total lease liability $ 141,194 Amounts recognized in Consolidated Balance Sheets: Accrued liabilities $ 5,072 Other liabilities 23,476 Liabilities subject to compromise 112,646 Total operating lease liability $ 141,194 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 31, 2020 2019 2018 Federal – current $ (11,844 ) $ (13,810 ) $ 20,107 State – current (12 ) 19 2 Foreign – current 9,898 25,899 9,531 Total current (1,958 ) 12,108 29,640 Federal – deferred (7,431 ) (67,015 ) (75,279 ) Foreign – deferred (11,797 ) 10,107 (714 ) Total deferred (19,228 ) (56,908 ) (75,993 ) Total $ (21,186 ) $ (44,800 ) $ (46,353 ) |
Difference Between Actual Income Tax Expense and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Income Before Taxes | The difference between actual income tax expense and the tax provision computed by applying the statutory federal income tax rate to income before taxes is attributable to the following (in thousands): Year Ended December 31, 2020 2019 2018 (Loss) income before income tax expense: U.S. $ (336,880 ) $ (339,072 ) $ (266,855 ) Foreign (939,210 ) (62,942 ) 40,230 $ (1,276,090 ) $ (402,014 ) $ (226,625 ) Expected income tax benefit at federal statutory rate $ (267,979 ) $ (84,423 ) $ (47,591 ) Effect of tax rate changes (7,003 ) (74,168 ) 1,763 Reorganization items 7,871 — — Post-petition interest expense (16,778 ) — — Effect of foreign operations 136,262 3,129 15 Valuation allowance 17,331 11,650 11,929 Uncertain tax positions, settlements and adjustments relating to prior years 107,148 96,960 (15,777 ) Other 1,962 2,052 3,308 Income tax benefit $ (21,186 ) $ (44,800 ) $ (46,353 ) |
Components of Deferred Income Tax Assets and Liabilities | Deferred Income Taxes. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards, or NOLs $ 285,910 $ 253,973 Foreign tax credits 34,089 43,026 Disallowed interest deduction 66,395 40,777 Worker’s compensation and other current accruals 5,644 6,250 Deferred deductions 7,749 12,345 Deferred revenue 11,240 7,209 Operating lease liability 9,156 5,461 Other 12,967 4,367 Total deferred tax assets 433,150 373,408 Valuation allowance (203,950 ) (186,620 ) Net deferred tax assets 229,200 186,788 Deferred tax liabilities: Property, plant and equipment (239,576 ) (225,643 ) Mobilization (7,422 ) (2,245 ) Right-of-use assets (9,603 ) (5,461 ) Other (937 ) (967 ) Total deferred tax liabilities (257,538 ) (234,316 ) Net deferred tax liability $ (28,338 ) $ (47,528 ) |
Summary of Rollforward of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties | A rollforward of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Balance, beginning of period $ (118,884 ) $ (55,943 ) $ (81,864 ) Additions for current year tax positions (100,780 ) (85,970 ) (2,906 ) Additions for prior year tax positions (1,559 ) (2,113 ) (20,943 ) Reductions for prior year tax positions 2,944 23,267 49,175 Reductions related to statute of limitation expirations 3,653 1,875 595 Balance, end of period $ (214,626 ) $ (118,884 ) $ (55,943 ) |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Information About Disaggregated Revenue by Equipment type and Country | The following tables provide information about disaggregated revenue by equipment-type and country (in thousands): Year Ended December 31, 2020 Total Contract Drilling Revenues (1) Revenues Related to Reimbursable Expenses Total United States $ 321,150 $ 13,262 $ 334,412 Brazil 155,436 (18 ) 155,418 United Kingdom 112,121 8,929 121,050 Australia 63,876 13,271 77,147 Malaysia (2) 40,170 5,490 45,660 Total $ 692,753 $ 40,934 $ 733,687 Year Ended December 31, 2019 Total Contract Drilling Revenues (1) Revenues Related to Reimbursable Expenses Total United States $ 507,759 $ 7,881 $ 515,640 Brazil 191,519 83 191,602 United Kingdom 149,724 14,036 163,760 Australia 85,932 23,710 109,642 Total $ 934,934 $ 45,710 $ 980,644 (1) Contract drilling revenue for 2020 and 2019 was entirely attributable to our floater rigs (drillships and semisubmersibles). (2) Revenue earned by the Ocean Monarch during a standby period in Malaysia while awaiting clearance to begin operations in Myanmar waters. Year Ended December 31, 2018 Floater Rigs Jack-up Rigs (1) Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 628,574 $ 8,413 $ 636,987 $ 7,436 $ 644,423 Brazil 170,839 — 170,839 (26 ) 170,813 United Kingdom 84,749 — 84,749 7,738 92,487 Australia 53,170 — 53,170 7,612 60,782 Malaysia 114,228 — 114,228 (210 ) 114,018 Other countries (2) — — — 692 692 Total $ 1,051,560 $ 8,413 $ 1,059,973 $ 23,242 $ 1,083,215 (1) Loss-of-hire insurance proceeds related to early contract terminations for two jack-up rigs that were disposed of in previous years. (2) Countries that individually comprise less than 5% of total revenues. |
Long-Lived Tangible Assets by Country | The following table presents the locations of our long-lived tangible assets by country as of December 31, 2020, 2019 and 2018. A substantial portion of our assets is comprised of rigs that are mobile, and therefore asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the country in which they were expected to operate (in thousands). December 31, 2020 (1) 2019 2018 (1) Drilling and other property and equipment, net: United States $ 2,162,488 $ 2,227,934 $ 2,245,989 International: Australia 722,389 570,964 242,929 Spain 686,436 — — United Kingdom 248,500 1,061,585 1,083,540 Myanmar 207,451 — — Brazil 87,543 883,607 923,355 Singapore 5,819 404,420 366,798 Malaysia 29 2,037 318,191 Other countries (2) 2,154 2,281 3,420 1,960,321 2,924,894 2,938,233 Total $ 4,122,809 $ 5,152,828 $ 5,184,222 (1) During 2020 and 2018, we recorded aggregate impairment losses of $842.0 million and $27.2 million, respectively, to write down certain of our drilling rigs and related equipment with indicators of impairment to their estimated recoverable amounts. (2) Countries with long-lived assets that individually comprise less than 5% of total d rilling and other property and equipment, net of accumulated depreciation . |
Revenues from Major Customers that Contributed More than 10% of Total Revenues | Revenues from our major customers for the years ended December 31, 2020, 2019 and 2018 that contributed more than 10% of our total revenues are as follows: Year Ended December 31, Customer 2020 2019 2018 Petróleo Brasileiro S.A. 21.2 % 19.5 % 15.8 % BP 20.6 % 3.1 % 10.5 % Occidental (formerly Anadarko) 20.1 % 20.6 % 33.8 % Hess Corporation 10.7 % 28.9 % 25.0 % Shell 10.1 % 5.2 % 1.0 % |
General Information - Additiona
General Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($)Rig | Mar. 31, 2020Rig | Dec. 31, 2020USD ($)Rig | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 04, 2021 | Jan. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Number of offshore rigs owned | Rig | 13 | ||||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | true | |||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | Jan. 1, 2020 | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | true | |||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Operating lease assets | $ 154,800 | $ 154,800 | $ 169,200 | ||||
Operating lease liabilities | $ 141,194 | $ 141,194 | |||||
Period considered to treat short-term, highly liquid investments as cash equivalents | three months or less | ||||||
Amount capitalized for asset replacements and betterments | $ 137,400 | 343,800 | |||||
Debt issuance costs and arrangement fees | $ 12 | $ 5,651 | |||||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | 27,552 | ||||||
Senior Indebtedness [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | 23,700 | ||||||
Revolving Credit Agreement [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | $ 3,900 | ||||||
Minimum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life for drilling rigs and equipment | 3 years | ||||||
Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life for drilling rigs and equipment | 30 years | ||||||
ASU 2016-02 [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Operating lease assets | $ 146,800 | ||||||
Operating lease liabilities | $ 146,800 | ||||||
Subsequent Event [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Outstanding common stock owned by loews corporation | 53.00% | ||||||
2020 Impaired Rigs [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of rigs evaluated for impairment | Rig | 3 | 5 | |||||
Ultra-deepwater Drillship [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of offshore rigs owned | Rig | 4 | ||||||
Semisubmersible Rigs [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of offshore rigs owned | Rig | 9 | ||||||
Cold Stacked Rigs [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of offshore rigs owned | Rig | 2 | ||||||
Other Drilling Rigs [Member] | 2020 Impaired Rigs [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of rigs evaluated for impairment | Rig | 2 |
Chapter 11 Proceedings - Additi
Chapter 11 Proceedings - Additional Information (Detail) $ in Thousands | Feb. 01, 2021USD ($)Claim | Jan. 22, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Liabilities Subject To Compromise [Line Items] | |||||
Line of credit | $ 436,000 | ||||
Liabilities subject to compromise | 2,618,805 | ||||
Net loss | (1,254,904) | $ (357,214) | $ (180,272) | ||
Pre-tax impairment charge | 842,016 | $ 27,225 | |||
Contractual interest expense not recorded | 98,027 | ||||
Senior Notes [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Contractual interest expense not recorded | 76,700 | ||||
Revolving Credit Agreement [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Line of credit | 6,000 | ||||
Contractual interest expense not recorded | $ 21,300 | ||||
5.70% Senior Notes due 2039 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 5.70% | 5.70% | |||
3.45% Senior Notes due 2023 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 3.45% | 3.45% | |||
4.875% Senior Notes due 2043 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 4.875% | 4.875% | |||
7.875% Senior Notes due 2025 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 7.875% | 7.875% | |||
Subsequent Event [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Bankruptcy claims, number claims filed | Claim | 866 | ||||
Bankruptcy claims, amount of claims filed against the debtors | $ 4,500,000 | ||||
Subsequent Event [Member] | Revolving Credit Agreement [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Line of credit | $ 950,000 | ||||
Subsequent Event [Member] | 5.70% Senior Notes due 2039 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 5.70% | ||||
Senior notes maturity year | 2039 | ||||
Subsequent Event [Member] | 3.45% Senior Notes due 2023 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 3.45% | ||||
Senior notes maturity year | 2023 | ||||
Subsequent Event [Member] | 4.875% Senior Notes due 2043 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 4.875% | ||||
Senior notes maturity year | 2043 | ||||
Subsequent Event [Member] | 7.875% Senior Notes due 2025 [Member] | |||||
Liabilities Subject To Compromise [Line Items] | |||||
Interest rate of senior notes | 7.875% | ||||
Senior notes maturity year | 2025 |
Chapter 11 Proceedings - Schedu
Chapter 11 Proceedings - Schedule of Reorganization Items Incurred (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reorganizations [Abstract] | |
Professional fees | $ 53,517 |
Write-off of debt issuance costs | 27,552 |
Net gain on settlement with certain unsecured vendors | (4,159) |
Total reorganization items, net | $ 76,910 |
Chapter 11 Proceedings - Sche_2
Chapter 11 Proceedings - Schedule of Reorganization Items Incurred (Detail) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reorganizations [Abstract] | |
Payment for professional fees and vendor cancellation costs | $ 40,301 |
Chapter 11 Proceedings - Summar
Chapter 11 Proceedings - Summary of Liabilities Subject to Compromise (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Aug. 31, 2017 |
Debt subject to compromise: | ||
Line of credit | $ 436,000 | |
Lease liabilities | 112,646 | |
Accrued interest | 47,636 | |
Accounts payable | 16,725 | |
Other accrued liabilities | 1,302 | |
Other liabilities | 4,496 | |
Total liabilities subject to compromise | 2,618,805 | |
3.45% Senior Notes due 2023 [Member] | ||
Debt subject to compromise: | ||
Senior Notes | 250,000 | |
7.875% Senior Notes due 2025 [Member] | ||
Debt subject to compromise: | ||
Senior Notes | 500,000 | $ 500,000 |
5.70% Senior Notes due 2039 [Member] | ||
Debt subject to compromise: | ||
Senior Notes | 500,000 | |
4.875% Senior Notes due 2043 [Member] | ||
Debt subject to compromise: | ||
Senior Notes | $ 750,000 |
Chapter 11 Proceedings - Summ_2
Chapter 11 Proceedings - Summary of Liabilities Subject to Compromise (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Chapter 11 Proceedings - Debtor
Chapter 11 Proceedings - Debtor-in-Possession Condensed Combined Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 405,869 | $ 156,281 | ||
Accounts receivable | 136,222 | 256,315 | ||
Less: allowance for credit losses | (5,562) | (5,459) | ||
Accounts receivable, net | 130,660 | 250,856 | ||
Prepaid expenses and other current assets | 62,275 | 68,658 | ||
Assets held for sale | 2,000 | 1,000 | ||
Total current assets | 625,315 | 476,795 | ||
Drilling and other property and equipment, net of accumulated depreciation | 4,122,809 | 5,152,828 | $ 5,184,222 | |
Other assets | 200,329 | 204,421 | ||
Total assets | 4,948,453 | 5,834,044 | ||
Current liabilities: | ||||
Accounts payable | 33,437 | 68,586 | ||
Accrued liabilities | 140,788 | 210,780 | ||
Taxes payable | 27,214 | 23,228 | ||
Total current liabilities | 201,439 | 302,594 | ||
Deferred tax liability | 28,338 | 47,528 | ||
Other liabilities | 117,305 | 275,971 | ||
Total liabilities not subject to compromise | 347,082 | 2,601,834 | ||
Liabilities subject to compromise | 2,618,805 | |||
Total debtors’ equity | 1,982,566 | 3,232,210 | $ 3,584,653 | $ 3,774,261 |
Total liabilities and stockholders’ equity | 4,948,453 | $ 5,834,044 | ||
Debtor [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 390,407 | |||
Restricted cash | 24,511 | |||
Accounts receivable | 123,981 | |||
Less: allowance for credit losses | (102) | |||
Accounts receivable, net | 123,879 | |||
Prepaid expenses and other current assets | 50,439 | |||
Assets held for sale | 1,000 | |||
Total current assets | 590,236 | |||
Drilling and other property and equipment, net of accumulated depreciation | 4,112,527 | |||
Investments in non-debtor subsidiaries | 2,468,384 | |||
Other assets | 184,955 | |||
Total assets | 7,356,102 | |||
Current liabilities: | ||||
Accounts payable | 30,280 | |||
Accrued liabilities | 130,133 | |||
Taxes payable | 25,005 | |||
Amounts payable to non-debtor subsidiaries | 1,057,913 | |||
Total current liabilities | 1,243,331 | |||
Note payable to non-debtor subsidiary | 328,000 | |||
Deferred tax liability | 11,907 | |||
Other liabilities | 63,674 | |||
Total liabilities not subject to compromise | 1,646,912 | |||
Liabilities subject to compromise | 2,618,805 | |||
Total debtors’ equity | 3,090,385 | |||
Total liabilities and stockholders’ equity | $ 7,356,102 |
Chapter 11 Proceedings - Debt_2
Chapter 11 Proceedings - Debtor-in-Possession Condensed Combined Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 733,687 | $ 980,644 | $ 1,083,215 |
Operating expenses: | |||
Depreciation | 320,085 | 355,596 | 331,789 |
General and administrative | 56,925 | 67,878 | 85,351 |
Impairment of assets | 842,016 | 27,225 | |
Restructuring and separation costs | 17,724 | 5,041 | |
Gain on disposition of assets | (7,375) | 1,072 | 241 |
Total operating expenses | 1,886,828 | 1,262,974 | 1,195,398 |
Operating loss | (1,153,141) | (282,330) | (112,183) |
Other income (expense): | |||
Interest income | 484 | 6,382 | 8,477 |
Interest expense | (42,585) | (122,832) | (123,240) |
Foreign currency transaction loss | (4,498) | (3,936) | (379) |
Reorganization items, net | (76,910) | ||
Other, net | 560 | 702 | 700 |
Loss before income tax benefit | (1,276,090) | (402,014) | (226,625) |
Income tax benefit | 21,186 | 44,800 | 46,353 |
Net loss | (1,254,904) | (357,214) | (180,272) |
Debtor [Member] | |||
Revenues: | |||
Total revenues | 642,306 | ||
Operating expenses: | |||
Depreciation | 319,124 | ||
General and administrative | 53,039 | ||
Impairment of assets | 842,016 | ||
Restructuring and separation costs | 15,634 | ||
Gain on disposition of assets | (7,208) | ||
Total operating expenses | 1,799,596 | ||
Operating loss | (1,157,290) | ||
Other income (expense): | |||
Interest income | 466 | ||
Interest expense | (50,586) | ||
Foreign currency transaction loss | (1,757) | ||
Reorganization items, net | (76,910) | ||
Other, net | (431) | ||
Loss before income tax benefit | (1,286,508) | ||
Income tax benefit | 29,093 | ||
Net loss | (1,257,415) | ||
Contract Drilling [Member] | |||
Revenues: | |||
Total revenues | 692,753 | 934,934 | 1,059,973 |
Operating expenses: | |||
Contract drilling, excluding depreciation | 618,553 | 793,412 | 722,834 |
Contract Drilling [Member] | Debtor [Member] | |||
Revenues: | |||
Total revenues | 601,354 | ||
Operating expenses: | |||
Contract drilling, excluding depreciation | 538,074 | ||
Reimbursable Expenses [Member] | |||
Revenues: | |||
Total revenues | 40,934 | 45,710 | 23,242 |
Operating expenses: | |||
Contract drilling, excluding depreciation | 38,900 | $ 45,016 | $ 22,917 |
Reimbursable Expenses [Member] | Debtor [Member] | |||
Revenues: | |||
Total revenues | 40,952 | ||
Operating expenses: | |||
Contract drilling, excluding depreciation | $ 38,917 |
Chapter 11 Proceedings - Debt_3
Chapter 11 Proceedings - Debtor-in-Possession Condensed Combined Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net loss | $ (1,254,904) | $ (357,214) | $ (180,272) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 320,085 | 355,596 | 331,789 |
Impairment of assets | 842,016 | 27,225 | |
Reorganization items, net | 22,106 | ||
(Gain) loss on disposition of assets | (7,375) | 1,072 | 241 |
Deferred tax provision | (19,228) | (56,908) | (75,993) |
Stock-based compensation expense | 5,637 | 6,208 | 6,749 |
Contract liabilities, net | 8,823 | 27,578 | 183 |
Contract assets, net | 3,444 | 2,625 | (6,221) |
Deferred contract costs, net | 1,960 | 59,141 | 22,765 |
Noncurrent collateral deposits | (18,262) | ||
Other assets, noncurrent | (7,950) | 52 | (1,307) |
Other | (35) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 114,329 | (37,832) | 87,970 |
Prepaid expenses and other current assets | 6,334 | (1,170) | 6,211 |
Accounts payable and accrued liabilities | (14,143) | 3,897 | (7,587) |
Taxes payable | 8,721 | (6,019) | 20,484 |
Net cash provided by operating activities | 8,379 | 9,089 | 232,058 |
Investing activities: | |||
Capital expenditures | (189,528) | (326,090) | (222,406) |
Proceeds from disposition of assets, net of disposal costs | 13,333 | 16,217 | 70,067 |
Net cash used in investing activities | (170,280) | (6,869) | (448,336) |
Financing activities: | |||
Borrowings under credit facility | 436,000 | ||
Net cash provided by (used in) financing activities | 436,000 | (12) | (5,686) |
Net change in cash, cash equivalents and restricted cash | 274,099 | 2,208 | (221,964) |
Cash, cash equivalents and restricted cash, beginning of year | 156,281 | 154,073 | 376,037 |
Cash, cash equivalents and restricted cash, end of year | 430,380 | 156,281 | $ 154,073 |
Debtor [Member] | |||
Operating activities: | |||
Net loss | (1,257,415) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 319,124 | ||
Impairment of assets | 842,016 | ||
Reorganization items, net | 22,106 | ||
(Gain) loss on disposition of assets | (7,208) | ||
Deferred tax provision | (19,467) | ||
Stock-based compensation expense | 5,637 | ||
Contract liabilities, net | 13,238 | ||
Contract assets, net | 1,337 | ||
Deferred contract costs, net | (4,231) | ||
Long-term employee remuneration programs | (3,991) | ||
Noncurrent collateral deposits | (18,262) | ||
Other assets, noncurrent | (7,608) | ||
Other | 3,701 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 72,550 | ||
Prepaid expenses and other current assets | 17,664 | ||
Accounts payable and accrued liabilities | (1,713) | ||
Taxes payable | (15,712) | ||
Due to non-debtor subsidiaries | 61,697 | ||
Net cash provided by operating activities | 23,463 | ||
Investing activities: | |||
Capital expenditures | (184,101) | ||
Capital contribution to non-debtor subsidiary | (15,661) | ||
Proceeds from disposition of assets, net of disposal costs | 13,119 | ||
Net cash used in investing activities | (186,643) | ||
Financing activities: | |||
Borrowings under credit facility | 436,000 | ||
Net cash provided by (used in) financing activities | 436,000 | ||
Net change in cash, cash equivalents and restricted cash | 272,820 | ||
Cash, cash equivalents and restricted cash, beginning of year | 142,098 | ||
Cash, cash equivalents and restricted cash, end of year | $ 414,918 | $ 142,098 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue From Contract With Customers [Line Items] | ||
Payment terms on invoiced amounts | 30 days | |
Deferred contract costs | $ 19,808,000 | $ 20,019,000 |
Contract costs amortization | 22,800,000 | 96,000,000 |
Contract costs impairment loss | 0 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Deferred contract costs | 19,800,000 | 20,000,000 |
Other Assets [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Deferred contract costs | $ 2,200,000 | $ 4,000,000 |
Minimum [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Initial term of contract | 2 months | |
Maximum [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Initial term of contract | 60 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Trade receivables | $ 115,732 | $ 199,572 |
Current contract assets | 2,870 | 6,314 |
Current contract liabilities (deferred revenue) | (51,763) | (9,573) |
Noncurrent contract liabilities (deferred revenue) | $ (5,164) | $ (38,531) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Significant Changes in Contract Assets and Contract Liabilities Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets, beginning of period | $ 6,314 | $ 8,939 |
Contract liabilities, beginning of period | (48,104) | (20,526) |
Net balance at beginning of period | (41,790) | (11,587) |
Decrease due to amortization of revenue that was included in the beginning contract liability balance | 35,231 | 6,952 |
Increase due to cash received, excluding amounts recognized as revenue during the period | (44,081) | (34,529) |
Increase due to revenue recognized during the period but contingent on future performance | 4,748 | 3,537 |
Decrease due to transfer to receivables during the period | (7,466) | (5,119) |
Adjustments | (699) | (1,044) |
Net balance at end of period | (54,057) | (41,790) |
Contract assets at end of period | 2,870 | 6,314 |
Contract liabilities at end of period | $ (56,927) | $ (48,104) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 60,035 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation | $ 55,095 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue remaining performance obligation | $ 4,940 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 29,135 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 26,521 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 2,614 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 15,358 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 13,906 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,452 |
Blended Rate and Other Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 15,542 |
Blended Rate and Other Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 14,668 |
Blended Rate and Other Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 874 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 60,035 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 29,135 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 15,358 |
Blended Rate and Other Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 15,542 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($)Rig | Mar. 31, 2020USD ($)Rig | Dec. 31, 2020USD ($)Rig | Dec. 31, 2019USD ($)Rig | Dec. 31, 2018USD ($) | |
Schedule Of Asset Impairment Charges [Line Items] | |||||
Number of rigs impaired during period | Rig | 4 | ||||
Loss on impairment of assets | $ 842,016,000 | $ 27,225,000 | |||
2020 Impaired Rigs [Member] | |||||
Schedule Of Asset Impairment Charges [Line Items] | |||||
Number of rigs evaluated for impairment | Rig | 3 | 5 | |||
Number of rigs impaired during period | Rig | 1 | 4 | |||
Loss on impairment of assets | $ 774,000 | ||||
Impaired long-lived assets held and used, method for determining fair value | We estimated the fair values of the 2020 Impaired Rigs using an income approach, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures, repair and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of each rig. Our fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. | ||||
2020 Impaired Rigs [Member] | Previously Impaired Rig [Member] | |||||
Schedule Of Asset Impairment Charges [Line Items] | |||||
Loss on impairment of assets | $ 68,000,000 | ||||
2020 Impaired Rigs [Member] | Other Drilling Rigs [Member] | |||||
Schedule Of Asset Impairment Charges [Line Items] | |||||
Number of rigs evaluated for impairment | Rig | 2 | ||||
Loss on impairment of assets | $ 0 | ||||
2019 Impaired Rigs [Member] | |||||
Schedule Of Asset Impairment Charges [Line Items] | |||||
Number of rigs evaluated for impairment | Rig | 3 | ||||
Loss on impairment of assets | $ 0 | ||||
2018 Impaired Rigs [Member] | |||||
Schedule Of Asset Impairment Charges [Line Items] | |||||
Loss on impairment of assets | $ 27,200,000 | ||||
Impaired long-lived assets held and used, method for determining fair value | We estimated the fair value of the impaired rig using a market approach based on a signed agreement to sell the rig, less estimated costs to sell. We considered this valuation approach to be a Level 3 fair value measurement due to the level of estimation involved as the sale had not yet been completed at the time of our analysis. |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade receivables | $ 115,732 | $ 199,572 |
Value added tax receivables | 10,781 | 17,716 |
Federal income tax receivable | 8,420 | 38,574 |
Related party receivables | 78 | 166 |
Other | 1,211 | 287 |
Receivables Gross Current, Total | 136,222 | 256,315 |
Allowance for credit losses | (5,562) | (5,459) |
Accounts receivable, net | $ 130,660 | $ 250,856 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred contract costs | $ 19,808 | $ 20,019 |
Prepaid taxes | 16,112 | 12,475 |
Rig spare parts and supplies | 12,606 | 18,250 |
Current contract assets | 2,870 | 6,314 |
Prepaid insurance | 2,446 | 2,892 |
Prepaid legal retainers | 2,408 | |
Prepaid rig costs | 2,317 | 2,990 |
Other | 3,708 | 5,718 |
Total | $ 62,275 | $ 68,658 |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Deferred revenue | $ 51,763 | $ 9,573 |
Payroll and benefits | 30,296 | 42,494 |
Shorebase and administrative costs | 17,275 | 5,275 |
Rig operating expenses | 21,123 | 37,969 |
Personal injury and other claims | 6,495 | 7,074 |
Accrued capital project/upgrade costs | 7,075 | 56,603 |
Current operating lease liability | 5,072 | 20,030 |
Interest payable | 28,234 | |
Other | 1,689 | 3,528 |
Total | $ 140,788 | $ 210,780 |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Accrued but unpaid capital expenditures at period end | $ 7,615 | $ 56,603 | $ 37,234 |
Common stock withheld for payroll tax obligations | 395 | 1,398 | 1,301 |
Cash interest payments | 19,843 | 113,063 | 113,063 |
Cash paid for reorganization items, net | 40,301 | ||
Foreign [Member] | |||
Cash income taxes paid (refunded), net: | |||
Cash income taxes paid, net of refunds | 11,826 | 17,821 | 9,286 |
U.S. Federal [Member] | |||
Cash income taxes paid (refunded), net: | |||
Cash income taxes paid, net of refunds | (42,462) | 1,001 | (7,389) |
State [Member] | |||
Cash income taxes paid (refunded), net: | |||
Cash income taxes paid, net of refunds | $ 36 | $ (15) | $ 2 |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Investing and Financing Activities (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of shares of common stock withheld | 131,698 | 132,547 | 87,799 |
Supplemental Financial Inform_8
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Proceeds from bonds | $ 5,915 | ||
Trinidad Bonds [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Proceeds from bonds | $ 5,900 | ||
Bonds received | $ 5,700 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration (in years) | 10 years | ||
Weighted-average grant date fair values of awards granted | $ 6.64 | $ 3.75 | $ 7.11 |
Intrinsic value of awards exercised | $ 0 | $ 0 | $ 100,000 |
Fair value of awards vested | 100,000 | 100,000 | 700,000 |
Time-vesting RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 200,000 | $ 1,900,000 | $ 1,900,000 |
Number of Equity Instruments Awarded in Period | 0 | 310,700 | 135,759 |
Time-vesting RSUs [Member] | Two Years from the Date of Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of RSUs vesting | 50.00% | ||
Time-vesting RSUs [Member] | Three Year from the Date of Grant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of RSUs vesting | 50.00% | ||
Performance-Vesting RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 1,200,000 | $ 2,300,000 | $ 2,500,000 |
Number of Equity Instruments Awarded in Period | 0 | 190,634 | 194,563 |
Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost recognized for awards under the Equity Plan | $ 5,600,000 | $ 6,200,000 | $ 6,800,000 |
Tax benefits recognized | 200,000 | $ 500,000 | $ 800,000 |
Unrecognized compensation cost related to nonvested awards under the Equity Plan | $ 100,000 | ||
Expected weighted average period to recognized compensation cost related to nonvested awards under the Equity Plan | 1 year | ||
Equity Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock available for issuance | 7,500,000 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used in Estimating Fair Value of Options and SARs (Detail) - Stock Appreciation Rights (SARs) [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of SARs (in years) | 8 years | 7 years | 7 years |
Expected volatility | 127.65% | 39.35% | 32.10% |
Risk free interest rate | 1.85% | 2.11% | 2.56% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity Under Stock Plan (Detail) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Outstanding, Beginning Balance | shares | 922,230 |
Number of Awards, granted | shares | 7,000 |
Number of Awards, cancelled | shares | (160,400) |
Number of Awards, expired | shares | (156,130) |
Number of Awards, Outstanding, Ending Balance | shares | 612,700 |
Number of Awards, exercisable | shares | 612,700 |
Weighted-Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 50.19 |
Weighted-Average Exercise Price, granted | $ / shares | 7.13 |
Weighted-Average Exercise Price, cancelled | $ / shares | 56.57 |
Weighted-Average Exercise Price, expired | $ / shares | 66.61 |
Weighted-Average Exercise Price Outstanding, Ending Balance | $ / shares | 43.84 |
Weighted-Average Exercise Price Outstanding, exercisable | $ / shares | $ 43.84 |
Weighted-Average Remaining Contractual Term, outstanding | 3 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, exercisable | 3 years 3 months 18 days |
Aggregate Intrinsic Value, outstanding | $ | $ 0 |
Aggregate Intrinsic Value, exercisable | $ | $ 0 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units Awarded Under Equity Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Time-vesting RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Awards, Nonvested, Beginning Balance | 533,603 | ||
Number of Awards, granted | 0 | 310,700 | 135,759 |
Number of Awards, vested | (156,819) | ||
Number of Awards, cancelled | (301,816) | ||
Number of Awards, forfeited | (63,968) | ||
Number of Awards, Nonvested, Ending Balance | 11,000 | 533,603 | |
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Beginning Balance | $ 12.58 | ||
Weighted-Average Grant Date Fair Value Per Share, vested | 15.64 | ||
Weighted-Average Grant Date Fair Value Per Share, cancelled | 11.26 | ||
Weighted-Average Grant Date Fair Value Per Share, forfeited | 11.55 | ||
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Ending Balance | $ 11.49 | $ 12.58 | |
Performance-Vesting RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Awards, Nonvested, Beginning Balance | 709,277 | ||
Number of Awards, granted | 0 | 190,634 | 194,563 |
Number of Awards, vested | (325,280) | ||
Number of Awards, cancelled | (346,001) | ||
Number of Awards, forfeited | (37,996) | ||
Number of Awards, Nonvested, Ending Balance | 709,277 | ||
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Beginning Balance | $ 14.41 | ||
Weighted-Average Grant Date Fair Value Per Share, vested | 16.61 | ||
Weighted-Average Grant Date Fair Value Per Share, cancelled | 12.58 | ||
Weighted-Average Grant Date Fair Value Per Share, forfeited | $ 12.31 | ||
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Ending Balance | $ 14.41 |
Loss Per Share - Securities Exc
Loss Per Share - Securities Excluded from Computations of Diluted Loss Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | |||
Employee and director: | |||
Securities excluded from computation of diluted loss per share | 464 | 1,205 | 1,153 |
Stock Appreciation Rights (SARs) [Member] | |||
Employee and director: | |||
Securities excluded from computation of diluted loss per share | 777 | 982 | 1,133 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Letters of credit to guarantee | $ 12,800 | ||
Trade receivables past due | $ 6,100 | ||
Trade receivables reserved for previous years | 5,500 | ||
Trade receivables, less than 90 Days past due | 600 | ||
Allowance for credit losses | $ 5,562 | $ 5,459 | |
Measurement period for determining fair value of debt instruments | 10 days | ||
ASU 2016-13 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Estimate of credit losses | $ 100 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring and Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of assets | $ 842,016 | $ 27,225 | |
Nonrecurring Fair Value Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impaired assets | 1,000 | ||
Impairment of assets | 842,016 | ||
Nonrecurring Fair Value Measurements [Member] | Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impaired assets | $ 1,000 | ||
Recurring Fair Value Measurements [Member] | Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total short-term investments | $ 135,300 | ||
Recurring Fair Value Measurements [Member] | Level 1 [Member] | Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total short-term investments | $ 135,300 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring and Recurring Basis (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)Rig | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Loss on impairment of assets | $ 842,016 | $ 27,225 | ||
Number of semisubmersible rigs | Rig | 1 | |||
Four Semisubmersible Rigs [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Loss on impairment of assets | $ 68,000 | $ 774,000 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 30.6 | $ 212.5 |
Carrying Value | 250 | 249.6 |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 61.3 | 435 |
Carrying Value | 500 | 497.1 |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 61.2 | 292.5 |
Carrying Value | 500 | 497.3 |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 91.9 | 408.8 |
Carrying Value | $ 750 | $ 749 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Drilling and Other Property a_3
Drilling and Other Property and Equipment - Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 7,111,718 | $ 8,161,045 | |
Less: accumulated depreciation | (2,988,909) | (3,008,217) | |
Drilling and other property and equipment, net | 4,122,809 | 5,152,828 | $ 5,184,222 |
Drilling Rigs and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 6,987,630 | 8,004,489 | |
Land and Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 41,072 | 64,267 | |
Office Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 83,016 | $ 92,289 |
Drilling and Other Property a_4
Drilling and Other Property and Equipment - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2020USD ($) | Dec. 31, 2020USD ($)Rig | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Gain (loss) on disposition of assets | $ 7,375 | $ (1,072) | $ (241) | |
Impairment of assets | $ 842,016 | $ 27,225 | ||
Number of rigs impaired during period | Rig | 4 | |||
Corporate Headquarters Office Building [Member] | Houston, Texas [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (loss) on disposition of assets | $ 3,700 | $ 3,700 | ||
Ocean Confidence [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (loss) on disposition of assets | $ 3,500 |
Credit Agreements and Senior _3
Credit Agreements and Senior Notes - Credit Agreement - Additional Information (Detail) - USD ($) | Oct. 02, 2018 | Mar. 31, 2020 | Dec. 31, 2020 | Apr. 28, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||||
Line of credit facility, amount borrowed | $ 436,000,000 | ||||
Line of credit issued | 436,000,000 | ||||
Contractual interest expense not recorded | 98,027,000 | ||||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | 27,552,000 | ||||
Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maturity | Oct. 2, 2023 | ||||
Amount available for general purposes | $ 950,000,000 | $ 950,000,000 | $ 442,000,000 | ||
Credit facility, term | 5 years | ||||
Line of credit facility, amount borrowed | 436,000,000 | 436,000,000 | |||
Line of credit issued | $ 6,000,000 | ||||
Line of credit facility, interest rate | 5.25% | ||||
Debt instruments interest rate description | At December 31, 2020, the outstanding borrowings under the Revolving Credit Agreement of $436.0 million are adjusted base rate loans that bear interest at a rate of 5.25% over the greater of (i) the prime rate, (ii) the federal funds rate plus 0.50% and (iii) the daily one-month Eurodollar Rate plus 1.00%. | ||||
Weighted average interest rate on borrowings | 8.50% | ||||
Percentage of participation fee on letter of credit | 6.25% | ||||
Contractual interest expense not recorded | $ 21,300,000 | ||||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | $ 3,900,000 | ||||
Revolving Credit Agreement [Member] | Eurodollar [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis point increase | 1.00% | ||||
Revolving Credit Agreement [Member] | Financial Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit issued | $ 6,000,000 | ||||
Revolving Credit Agreement [Member] | Diamond Foreign Assets Corporation [Member] | |||||
Debt Instrument [Line Items] | |||||
Equity interest pledged as collateral on borrowing | 65.00% | ||||
Revolving Credit Agreement [Member] | Letter Of Credit Subfacility [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount available for general purposes | $ 250,000,000 | ||||
Revolving Credit Agreement [Member] | Swingline Sub Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount available for general purposes | $ 100,000,000 | ||||
Credit facility Mature on October 22, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Termination of credit agreement | $ 225,000,000 | ||||
Credit facility, maturity | Oct. 22, 2020 | ||||
Write-off of deferred arrangement fees | $ 500,000 | ||||
Federal Funds Rate [Member] | Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis point increase | 0.50% |
Credit Agreements and Senior _4
Credit Agreements and Senior Notes - Summary of Senior Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2017 | |
3.45% Senior Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount | $ 250,000 | ||
Maturity Date | Nov. 1, 2023 | ||
Interest rate Coupon, senior notes | 3.45% | 3.45% | |
Interest rate Effective, senior notes | 3.50% | ||
Semiannual Interest Payment Dates | May 1 and November 1 | ||
7.875% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount | $ 500,000 | $ 500,000 | |
Maturity Date | Aug. 15, 2025 | ||
Interest rate Coupon, senior notes | 7.875% | 7.875% | |
Interest rate Effective, senior notes | 8.00% | ||
Semiannual Interest Payment Dates | February 15 and August 15 | ||
5.70% Senior Notes due 2039 [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount | $ 500,000 | ||
Maturity Date | Oct. 15, 2039 | ||
Interest rate Coupon, senior notes | 5.70% | 5.70% | |
Interest rate Effective, senior notes | 5.75% | ||
Semiannual Interest Payment Dates | April 15 and October 15 | ||
4.875% Senior Notes due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount | $ 750,000 | ||
Maturity Date | Nov. 1, 2043 | ||
Interest rate Coupon, senior notes | 4.875% | 4.875% | |
Interest rate Effective, senior notes | 4.89% | ||
Semiannual Interest Payment Dates | May 1 and November 1 |
Credit Agreements and Senior _5
Credit Agreements and Senior Notes - Summary of Senior Notes (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Credit Agreements and Senior _6
Credit Agreements and Senior Notes - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense not recorded | $ 98,027 | |||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | 27,552 | |||
7.875% Senior Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of senior unsecured notes | $ 500,000 | $ 500,000 | ||
Interest rate of senior notes | 7.875% | 7.875% | ||
Proceeds from issuance of senior notes | $ 489,100 | |||
7.875% Senior Notes due 2025 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 15 days | |||
7.875% Senior Notes due 2025 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 60 days | |||
5.875% Senior Notes due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate of senior notes | 5.875% | |||
3.45% Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of senior unsecured notes | $ 250,000 | |||
Interest rate of senior notes | 3.45% | 3.45% | ||
3.45% Senior Notes due 2023 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 15 days | |||
3.45% Senior Notes due 2023 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 60 days | |||
4.875% Senior Notes due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of senior unsecured notes | $ 750,000 | |||
Interest rate of senior notes | 4.875% | 4.875% | ||
4.875% Senior Notes due 2043 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 15 days | |||
4.875% Senior Notes due 2043 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 60 days | |||
5.70% Senior Notes due 2039 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of senior unsecured notes | $ 500,000 | |||
Interest rate of senior notes | 5.70% | 5.70% | ||
5.70% Senior Notes due 2039 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 15 days | |||
5.70% Senior Notes due 2039 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Notice period for redemption of senior notes | 60 days | |||
Senior Indebtedness [Member] | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense not recorded | $ 76,700 | |||
Write-off of deferred arrangement fees and unamortized discount and debt issuance costs | $ 23,700 |
Credit Agreements and Senior _7
Credit Agreements and Senior Notes - Summary of Carrying Value of Senior Notes, Net of Unamortized Discount and Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 2,000,000 | $ 1,975,741 |
3.45% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 250,000 | 248,759 |
7.875% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 500,000 | 491,655 |
5.70% Senior Notes due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 500,000 | 493,316 |
4.875% Senior Notes due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 750,000 | $ 742,011 |
Credit Agreements and Senior _8
Credit Agreements and Senior Notes - Summary of Carrying Value of Senior Notes, Net of Unamortized Discount and Debt Issuance Costs (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
3.45% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contingencies And Commitments [Line Items] | |||
Estimated sales tax and related penalties and interest | $ 13,500,000 | $ 16,100,000 | |
Deductible for marine liability coverage including personal injury claims, per first occurrence | 5,000,000 | ||
Range of deductible for liability coverage for personal injury claims, lower limit | 5,000,000 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | 100,000,000 | ||
Purchase obligations | 0 | ||
Maturity of service arrangement | 10 years | ||
Annual payments due under service agreement | 39,000,000 | ||
Total remaining payments due under service agreement | 210,000,000 | ||
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 32,500,000 | ||
Potentially Collateralized Contingent Liability Under Letters Of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 24,200,000 | ||
Uncollateralized Contingent Liability Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 8,300,000 | ||
Collateralized Contingent Liability Under Financial Letters of Credit and Surety Bond [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 6,000,000 | ||
Cash Collateralized Contingent Liability Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 17,500,000 | ||
Windstorms in U.S. Gulf of Mexico [Member] | |||
Contingencies And Commitments [Line Items] | |||
Deductible for marine liability coverage including personal injury claims, per first occurrence | 25,000,000 | ||
Range of deductible for liability coverage for personal injury claims, lower limit | 25,000,000 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | 100,000,000 | ||
Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 14,700,000 | 17,400,000 | |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 5,900,000 | 6,400,000 | |
Personal Injury Claims [Member] | Other Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | $ 8,800,000 | $ 11,000,000 |
Leases and Leases Commitments -
Leases and Leases Commitments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | |||||
Options to extend the leases | 5 years | ||||
Gain (loss) on disposition of assets | $ 7,375 | $ (1,072) | $ (241) | ||
Operating cash flows used for operating leases | 35,057 | 39,561 | |||
Total operating lease expense | 35,964 | 35,752 | $ 30,100 | ||
Operating lease assets | $ 154,800 | $ 169,200 | |||
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | |||
ASU 2016-02 [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease assets | $ 146,800 | ||||
ASU 2016-02 [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Prepaid rent | 3,900 | ||||
ASU 2016-02 [Member] | Other Assets [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Prepaid rent | $ 10,600 | ||||
Corporate Headquarters Office Building [Member] | Houston, Texas [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Gain (loss) on disposition of assets | $ 3,700 | $ 3,700 | |||
Sale and Leaseback Office Building [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term | 3 years | ||||
Options to terminate the leases | 2 years | ||||
Sale and Lease-back Equipment [Member] | ASU 2016-02 [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term | 10 years | ||||
Options to extend the leases | 5 years | ||||
Operating cash flows used for operating leases | $ 26,000 | ||||
Sale lease back transaction renewal term description | renewal options for two successive five-year periods. | ||||
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term | 1 month | ||||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term | 10 years | ||||
Options to terminate the leases | 1 year |
Leases and Leases Commitments_2
Leases and Leases Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 35,964 | $ 35,752 | $ 30,100 |
Short-term lease cost | 832 | 3,414 | |
Variable lease cost | 1,465 | 504 | |
Total lease cost | $ 38,261 | $ 39,670 |
Leases and Leases Commitments_3
Leases and Leases Commitments - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 35,057 | $ 39,561 |
Right-of-use assets obtained in exchange for lease liabilities | $ 10,645 | $ 26,248 |
Weighted-average remaining lease term | 5 years 7 months 6 days | 6 years 8 months 12 days |
Weighted-average discount rate | 8.94% | 8.68% |
Leases and Leases Commitments_4
Leases and Leases Commitments - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 33,214 | |
2022 | 32,918 | |
2023 | 32,248 | |
2024 | 31,071 | |
2025 | 29,879 | |
Thereafter | 21,635 | |
Total lease payments | 180,965 | |
Less: interest | (39,771) | |
Operating lease liabilities | 141,194 | |
Amounts recognized in Consolidated Balance Sheets: | ||
Accrued liabilities | $ 5,072 | $ 20,030 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesMember | |
Other liabilities | $ 23,476 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesMember | |
Liabilities subject to compromise | $ 112,646 | |
Total operating lease liability | $ 141,194 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Services Agreement with Loews [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction expenses | $ 0.3 | $ 0.7 | $ 0.6 |
Restructuring and Separation _2
Restructuring and Separation Costs - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Commencement of chapter 11 cases in bankruptcy court , date of petition filed | Apr. 26, 2020 | |
Payment of accrued costs associated with restructuring plan | $ 12.4 | |
Restructuring a cost description | During 2018, we incurred $5.0 million in severance and related costs for redundant employees identified in 2018 in connection with the restructuring plan and paid $12.4 million in previously accrued costs. | |
Restructuring and Separation Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Legal and other professional advisor fees incurred prior to petition date | $ 7.4 | |
Severance and related costs | $ 10.3 | $ 5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||||
Income tax benefit from carryback of net operating losses | $ (9,700) | |||||
Net deferred tax asset and offsetting valuation allowance for swiss tax reform | $ 187,000 | |||||
Net tax benefit related to tax law change | $ 14,200 | 2,944 | $ 23,267 | $ 49,175 | ||
Charge relating to previously deferred earnings of certain non-US subsidiaries | 11,240 | 7,209 | ||||
Revised net tax benefit associated with tax reform act | 34,500 | |||||
Net operating loss carryforwards, or NOLs | 285,910 | 253,973 | ||||
Deferred tax asset relates to NOL carryforwards | 215,900 | |||||
Net operating loss carryforwards to expire | $ 70,000 | |||||
Net operating loss carryforwards expiring years | 2024 and 2038 | |||||
Deferred tax assets for foreign tax credits | $ 34,089 | 43,026 | ||||
Valuation allowance of net operating losses | 204,000 | |||||
Net liability for uncertain tax positions | 214,626 | 118,884 | 55,943 | $ 81,864 | ||
Net increase in uncertain tax positions from prior years | 1,559 | 2,113 | 20,943 | |||
Net unrecognized tax benefits that would affect the effective tax rate | 249,000 | 148,800 | 81,600 | |||
Accrued interest on uncertain tax positions | 6,000 | 4,000 | ||||
Accrued penalties on uncertain tax positions | 19,000 | 16,500 | ||||
Interest expense recognized related to uncertain tax positions | 1,900 | 1,000 | 100 | |||
Penalties recognized related to uncertain tax positions | 1,100 | 300 | (600) | |||
Tax Year 2015 Through 2017 [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Decrease in unrecognized tax benefit | 4,500 | |||||
Other Assets [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net liability for uncertain tax positions | 600 | 500 | ||||
Deferred Tax Liability [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net liability for uncertain tax positions | 193,200 | 91,100 | ||||
Other Liabilities [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net liability for uncertain tax positions | 56,300 | 58,300 | ||||
Retained Earnings [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Valuation allowance reduced | 6,200 | |||||
Deferred Tax Assets Including Net Operating Losses, Foreign Tax Credits and Other [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Change in valuation allowance | 69,200 | 30,700 | 35,200 | |||
Releases of Valuation Allowances in Various Jurisdictions [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Change in valuation allowance | 51,900 | 19,000 | $ 23,300 | |||
United States [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Deferred tax assets for foreign tax credits | 34,100 | |||||
Diamond Foreign Assets Corporation [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Withholding income tax | 500 | |||||
U.S. Federal [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax credit resulting from remeasurement of net U.S. deferred tax liabilities | 72,500 | |||||
Net operating loss carryforwards, or NOLs | 217,200 | |||||
Foreign [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net operating loss carryforwards, or NOLs | 68,700 | |||||
Switzerland Tax Legislation [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Net liability for uncertain tax positions | $ 100,800 | $ 86,200 | ||||
Mandatory Repatriation [Member] | U.S. Federal [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Charge relating to previously deferred earnings of certain non-US subsidiaries | $ 38,000 | |||||
Foreign Tax Credit Carryforwards [Member] | United States [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Foreign tax credits expiration periods | between 2024 to 2029 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal – current | $ (11,844) | $ (13,810) | $ 20,107 |
State – current | (12) | 19 | 2 |
Foreign – current | 9,898 | 25,899 | 9,531 |
Total current | (1,958) | 12,108 | 29,640 |
Federal – deferred | (7,431) | (67,015) | (75,279) |
Foreign – deferred | (11,797) | 10,107 | (714) |
Total deferred | (19,228) | (56,908) | (75,993) |
Income tax benefit | $ (21,186) | $ (44,800) | $ (46,353) |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Actual Income Tax Expense and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Income Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
(Loss) income before income tax expense: | |||
U.S. | $ (336,880) | $ (339,072) | $ (266,855) |
Foreign | (939,210) | (62,942) | 40,230 |
Worldwide | (1,276,090) | (402,014) | (226,625) |
Expected income tax benefit at federal statutory rate | (267,979) | (84,423) | (47,591) |
Effect of tax rate changes | (7,003) | (74,168) | 1,763 |
Reorganization items | 7,871 | ||
Post-petition interest expense | (16,778) | ||
Effect of foreign operations | 136,262 | 3,129 | 15 |
Valuation allowance | 17,331 | 11,650 | 11,929 |
Uncertain tax positions, settlements and adjustments relating to prior years | 107,148 | 96,960 | (15,777) |
Other | 1,962 | 2,052 | 3,308 |
Income tax benefit | $ (21,186) | $ (44,800) | $ (46,353) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards, or NOLs | $ 285,910 | $ 253,973 |
Foreign tax credits | 34,089 | 43,026 |
Disallowed interest deduction | 66,395 | 40,777 |
Worker’s compensation and other current accruals | 5,644 | 6,250 |
Deferred deductions | 7,749 | 12,345 |
Deferred revenue | 11,240 | 7,209 |
Operating lease liability | 9,156 | 5,461 |
Other | 12,967 | 4,367 |
Total deferred tax assets | 433,150 | 373,408 |
Valuation allowance | (203,950) | (186,620) |
Net deferred tax assets | 229,200 | 186,788 |
Deferred tax liabilities: | ||
Property, plant and equipment | (239,576) | (225,643) |
Mobilization | (7,422) | (2,245) |
Right-of-use assets | (9,603) | (5,461) |
Other | (937) | (967) |
Total deferred tax liabilities | (257,538) | (234,316) |
Net deferred tax liability | $ (28,338) | $ (47,528) |
Income Taxes - Summary of Rollf
Income Taxes - Summary of Rollforward of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Balance, beginning of period | $ (118,884) | $ (55,943) | $ (81,864) | |
Additions for current year tax positions | (100,780) | (85,970) | (2,906) | |
Additions for prior year tax positions | (1,559) | (2,113) | (20,943) | |
Reductions for prior year tax positions | $ 14,200 | 2,944 | 23,267 | 49,175 |
Reductions related to statute of limitation expirations | 3,653 | 1,875 | 595 | |
Balance, end of period | $ (214,626) | $ (118,884) | $ (55,943) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Matching Contribution per employee by the company | 4.00% | |||
Provision for contributions to the Supplemental Plan | $ 0 | $ 100,000 | $ 100,000 | |
US Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employers percentage matching of first 5% of each employee's qualifying annual compensation | 100.00% | 100.00% | 100.00% | |
Defined Contribution Plan, Matching Contribution per employee by the company | 5.00% | 5.00% | 5.00% | |
Defined contribution plan, cost recognized | $ 6,200,000 | $ 9,100,000 | $ 8,000,000 | |
UK Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, cost recognized | $ 1,800,000 | $ 2,100,000 | $ 1,500,000 | |
UK Plan [Member] | U. K. Sector of North Sea [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Matching Contribution by the company | 6.00% | 6.00% | 6.00% | |
International Savings Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Matching Contribution per employee by the company | 5.00% | 5.00% | 5.00% | |
Defined contribution plan, cost recognized | $ 200,000 | $ 400,000 | $ 400,000 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020SegmentCountry | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Number of countries with rigs | Country | 3 | ||
Customer Concentration Risk [Member] | Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk benchmark | contributed more than 10% of our total revenues | ||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Segments and Geographic Area _4
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Equipment-type and Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 733,687 | $ 980,644 | $ 1,083,215 |
Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 692,753 | 934,934 | 1,059,973 |
Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,051,560 | ||
Contract Drilling [Member] | Jack-up Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 8,413 | ||
Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 40,934 | 45,710 | 23,242 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 334,412 | 515,640 | 644,423 |
United States [Member] | Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 321,150 | 507,759 | 636,987 |
United States [Member] | Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 628,574 | ||
United States [Member] | Contract Drilling [Member] | Jack-up Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 8,413 | ||
United States [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 13,262 | 7,881 | 7,436 |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 155,418 | 191,602 | 170,813 |
Brazil [Member] | Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 155,436 | 191,519 | 170,839 |
Brazil [Member] | Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 170,839 | ||
Brazil [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (18) | 83 | (26) |
United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 121,050 | 163,760 | 92,487 |
United Kingdom [Member] | Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 112,121 | 149,724 | 84,749 |
United Kingdom [Member] | Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 84,749 | ||
United Kingdom [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 8,929 | 14,036 | 7,738 |
Australia [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 77,147 | 109,642 | 60,782 |
Australia [Member] | Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 63,876 | 85,932 | 53,170 |
Australia [Member] | Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 53,170 | ||
Australia [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 13,271 | $ 23,710 | 7,612 |
Malaysia [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 45,660 | 114,018 | |
Malaysia [Member] | Contract Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 40,170 | 114,228 | |
Malaysia [Member] | Contract Drilling [Member] | Floater Rigs [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 114,228 | ||
Malaysia [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 5,490 | (210) | |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 692 | ||
Other Countries [Member] | Reimbursable Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 692 |
Segments and Geographic Area _5
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Equipment-type and Country (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Other Countries [Member] | Maximum [Member] | Revenues [Member] | |
Segment Reporting Information [Line Items] | |
Concentration risk percentage | 5.00% |
Segments and Geographic Area _6
Segments and Geographic Area Analysis - Long-Lived Tangible Assets by Country (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | $ 4,122,809 | $ 5,152,828 | $ 5,184,222 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 2,162,488 | 2,227,934 | 2,245,989 |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 722,389 | 570,964 | 242,929 |
Spain [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 686,436 | ||
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 248,500 | 1,061,585 | 1,083,540 |
Myanmar [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 207,451 | ||
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 87,543 | 883,607 | 923,355 |
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 5,819 | 404,420 | 366,798 |
Malaysia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 29 | 2,037 | 318,191 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | 2,154 | 2,281 | 3,420 |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Drilling and other property and equipment, net | $ 1,960,321 | $ 2,924,894 | $ 2,938,233 |
Segments and Geographic Area _7
Segments and Geographic Area Analysis - Long-Lived Tangible Assets by Country (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Impairment of assets | $ 842,016 | $ 27,225 |
Other Countries [Member] | Drilling and Other Property and Equipment , Net of Accumulated Depreciation [Member] | Maximum [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk percentage | 5.00% |
Segments and Geographic Area _8
Segments and Geographic Area Analysis - Revenues from Major Customers that Contributed More than 10% of Total Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 10.00% | 10.00% | 10.00% |
Petrobras Brasileiro S.A. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 21.20% | 19.50% | 15.80% |
BP [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 20.60% | 3.10% | 10.50% |
Occidental (formerly Anadarko) [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 20.10% | 20.60% | 33.80% |
Hess Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 10.70% | 28.90% | 25.00% |
Shell [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenues from major customers | 10.10% | 5.20% | 1.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Jan. 22, 2021USD ($) |
Exit Revolving Credit Facility [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Credit facility pro rata share cash | $ 275,000,000 |
Exit Revolving Credit Facility [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Credit facility pro rata share cash | 280,000,000 |
Credit facility pro rata share amount of funded loans | $ 100,000,000 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Pro rata share, exercisable percentage on common equity | 7.00% |
Warrants exercise period | 5 years |
Plan of reorganization, date plan filed | Jan. 22, 2021 |
Subsequent Event [Member] | Exit Revolving Credit Facility [Member] | |
Subsequent Event [Line Items] | |
Amount available for general purposes | $ 100,000,000 |
Credit facility, maturity year | 2026 |
Debt instruments interest rate description | LIBOR + 425 bps and is payable in cash |
Commitment fee payable | $ 3,500,000 |
Subsequent Event [Member] | Exit Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Subsequent Event [Line Items] | |
Credit facility, basis spread on interest rate | 4.25% |
Subsequent Event [Member] | Exit Revolving Credit Facility [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 300,000,000 |
Subsequent Event [Member] | Exit Revolving Credit Facility [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 400,000,000 |
Subsequent Event [Member] | Exit Term Loan Facility [Member] | |
Subsequent Event [Line Items] | |
Debt instrument, maturity year | 2027 |
Debt instrument, interest rate description | cash pay rate of LIBOR + 600 bps, a payment in kind, or PIK, rate of LIBOR + 1000 bps, or a 50/50 combined cash and PIK rate of LIBOR + 800 bps. |
Subsequent Event [Member] | Exit Term Loan Facility [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 100,000,000 |
Notice period for redemption of senior notes | 15 days |
Subsequent Event [Member] | Exit Term Loan Facility [Member] | Maximum [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 200,000,000 |
Notice period for redemption of senior notes | 60 days |
Subsequent Event [Member] | Exit Notes [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 110,000,000 |
Debt issued and outstanding amount | 75,000,000 |
Exit finaincing, amount receivable by holders upon rights offering | $ 68,750,000 |
Commitment premium percentage | 9.00% |
Subsequent Event [Member] | Exit Notes [Member] | Private Placements [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 41,250,000 |
Subsequent Event [Member] | Exit Notes [Member] | Unfunded Loan Commitment [Member] | |
Subsequent Event [Line Items] | |
Debt issued and outstanding amount | $ 35,000,000 |
Debt instrument, interest rate term description | The reorganized Company will pay a ticking fee of 3% per annum on the aggregate principal amount of any undrawn Delayed Draw Exit Notes, which shall be payable in cash semi-annually in arrears commencing on the date that is six months from the Debtors’ emergence from the Chapter 11 Cases until the earliest of (i) the date of the issuance of the Delayed Draw Exit Notes, (ii) the date that is 24 months prior to the scheduled maturity of the Exit Notes and (iii) the date that the Delayed Draw Subscription Agreement (as defined in the Backstop Agreement) is terminated in accordance with its terms. |
Debt instrument, interest rate | 3.00% |
Subsequent Event [Member] | Exit Notes [Member] | Commitment Premium [Member] | |
Subsequent Event [Line Items] | |
Aggregate principal amount | $ 9,900,000 |
Senior Indebtedness [Member] | |
Subsequent Event [Line Items] | |
Pro rata share received percentage | 70.00% |
Senior Indebtedness [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Pro rata share received percentage | 70.00% |
Remaining percentage of pro rata share of issued common equity | 30.00% |
Senior Indebtedness [Member] | Subsequent Event [Member] | Private Placements [Member] | |
Subsequent Event [Line Items] | |
Remaining percentage of pro rata share of issued common equity | 11.25% |
Senior Indebtedness [Member] | Subsequent Event [Member] | Rights Offerings [Member] | |
Subsequent Event [Line Items] | |
Remaining percentage of pro rata share of issued common equity | 18.75% |
Cash Pay Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | |
Subsequent Event [Line Items] | |
Interest rate of senior notes | 9.00% |
Cash Pay Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Subsequent Event [Line Items] | |
Credit facility, basis spread on interest rate | 6.00% |
Payment in Kind Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | |
Subsequent Event [Line Items] | |
Interest rate of senior notes | 13.00% |
Payment in Kind Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Subsequent Event [Line Items] | |
Credit facility, basis spread on interest rate | 10.00% |
Cash Pay Rate and Payment in Kind Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | |
Subsequent Event [Line Items] | |
Interest rate of senior notes | 11.00% |
Cash Pay Rate and Payment in Kind Rate [Member] | Subsequent Event [Member] | Exit Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Subsequent Event [Line Items] | |
Credit facility, basis spread on interest rate | 8.00% |