XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.19.2

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2019
Segment Reporting Information, Revenue for Reportable Segment [Abstract] |
Segment Information | Segment Information Prior to the Rowan Transaction, our business consisted of three operating segments: (1) Floaters, which included our drillships and semisubmersible rigs, (2) Jackups and (3) Other, which consisted only of our management services provided on rigs owned by third-parties. Our Floaters and Jackups segments were also reportable segments. As a result of the Rowan Transaction, we concluded that we would maintain the aforementioned segment structure while adding ARO as a reportable segment for the new combined company. We also concluded that the activities associated with our arrangements with ARO, consisting of our Transition Services Agreement, Rig Lease Agreements and Secondment Agreement, do not constitute reportable segments and are therefore included within Other in the following segment disclosures. Substantially all of the expenses incurred associated with our Transition Services Agreement are included in general and administrative under "Reconciling Items" in the table set forth below. General and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income and are included in "Reconciling Items." The full operating results included below for ARO (representing only results of operations of ARO from the Transaction Date) are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. See Note 4 for additional information on ARO and related arrangements. Segment information for the three-month and six-month periods ended June 30, 2019 and 2018 is presented below (in millions): Three Months Ended June 30, 2019
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 295.6 |  |  | $ | 229.2 |  |  | $ | 123.8 |  |  | $ | 59.1 |  |  | $ | (123.8 | ) |  | $ | 583.9 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 249.2 |  |  | 212.2 |  |  | 78.9 |  |  | 38.9 |  |  | (78.9 | ) |  | 500.3 |
Loss on impairment | — |  |  | — |  |  | — |  |  | — |  |  | 2.5 |  |  | 2.5 |
Depreciation | 98.4 |  |  | 55.5 |  |  | 12.4 |  |  | — |  |  | (8.4 | ) |  | 157.9 |
General and administrative | — |  |  | — |  |  | 5.3 |  |  | — |  |  | 75.9 |  |  | 81.2 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 0.6 |  |  | 0.6 |
Operating income (loss) | $ | (52.0 | ) |  | $ | (38.5 | ) |  | $ | 27.2 |  |  | $ | 20.2 |  |  | $ | (114.3 | ) |  | $ | (157.4 | )
Property and equipment, net | $ | 10,364.7 |  |  | $ | 5,055.6 |  |  | $ | 656.5 |  |  | $ | — |  |  | $ | (621.1 | ) |  | $ | 15,455.7 |
Three Months Ended June 30, 2018
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 284.9 |  |  | $ | 158.7 |  |  | $ | — |  |  | $ | 14.9 |  |  | $ | — |  |  | $ | 458.5 |
Operating expenses |  |  |  |  |  |  |  |  |  |  | — |
Contract drilling (exclusive of depreciation) | 203.7 |  |  | 126.8 |  |  | — |  |  | 13.8 |  |  | — |  |  | 344.3 |
Depreciation | 80.8 |  |  | 36.5 |  |  | — |  |  | — |  |  | 3.4 |  |  | 120.7 |
General and administrative | — |  |  | — |  |  | — |  |  | — |  |  | 26.1 |  |  | 26.1 |
Operating income (loss) | $ | 0.4 |  |  | $ | (4.6 | ) |  | $ | — |  |  | $ | 1.1 |  |  | $ | (29.5 | ) |  | $ | (32.6 | )
Property and equipment, net | $ | 9,574.9 |  |  | $ | 3,167.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 42.0 |  |  | $ | 12,783.9 |
Six Months Ended June 30, 2019
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 528.3 |  |  | $ | 386.2 |  |  | $ | 123.8 |  |  | $ | 75.3 |  |  | $ | (123.8 | ) |  | $ | 989.8 |
Operating expenses |  |  |  |  |  |  |  |  |  |  | — |
Contract drilling (exclusive of depreciation) | 431.0 |  |  | 347.6 |  |  | 78.9 |  |  | 54.3 |  |  | (78.9 | ) |  | 832.9 |
Loss on impairment | — |  |  | — |  |  | — |  |  | — |  |  | 2.5 |  |  | 2.5 |
Depreciation | 183.2 |  |  | 92.4 |  |  | 12.4 |  |  | — |  |  | (5.1 | ) |  | 282.9 |
General and administrative | — |  |  | — |  |  | 5.3 |  |  | — |  |  | 105.5 |  |  | 110.8 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 0.6 |  |  | 0.6 |
Operating income (loss) | $ | (85.9 | ) |  | $ | (53.8 | ) |  | $ | 27.2 |  |  | $ | 21.0 |  |  | $ | (147.2 | ) |  | $ | (238.7 | )
Property and equipment, net | $ | 10,364.7 |  |  | $ | 5,055.6 |  |  | $ | 656.5 |  |  | $ | — |  |  | $ | (621.1 | ) |  | $ | 15,455.7 |
Six Months Ended June 30, 2018
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 543.9 |  |  | $ | 302.1 |  |  | $ | — |  |  | $ | 29.5 |  |  | $ | — |  |  | $ | 875.5 |
Operating expenses |  |  |  |  |  |  |  |  |  |  | — |
Contract drilling (exclusive of depreciation) | 388.8 |  |  | 253.7 |  |  | — |  |  | 27.0 |  |  | — |  |  | 669.5 |
Depreciation | 156.1 |  |  | 73.0 |  |  | — |  |  | — |  |  | 6.8 |  |  | 235.9 |
General and administrative | — |  |  | — |  |  | — |  |  | — |  |  | 54.0 |  |  | 54.0 |
Operating income (loss) | $ | (1.0 | ) |  | $ | (24.6 | ) |  | $ | — |  |  | $ | 2.5 |  |  | $ | (60.8 | ) |  | (83.9 | )
Property and equipment, net | $ | 9,574.9 |  |  | $ | 3,167.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 42.0 |  |  | 12,783.9 |
Information about Geographic Areas As of June 30, 2019, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other (1) |  | Total Valaris |  | ARO
North & South America | 12 |  | 9 |  | — |  | 21 |  | —
Europe & Mediterranean | 5 |  | 17 |  | — |  | 22 |  | —
Middle East & Africa(2) | 5 |  | 11 |  | 9 |  | 25 |  | 7
Asia & Pacific Rim | 4 |  | 7 |  | — |  | 11 |  | —
Asia & Pacific Rim (under construction) | 2 |  | — |  | — |  | 2 |  | —
Total | 28 |  | 44 |  | 9 |  | 81 |  | 7
(1) | The rigs included in the "Other" segment represent the nine rigs leased to ARO (two of which are expected to commence drilling operations during the third quarter of 2019). See Note 4 for additional information.
(2) The number of Middle East & Africa Jackup drilling rigs excludes one older Rowan jackup rig marked for retirement.

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingInformationRevenueAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration