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Segment Information | 12 Months Ended
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Dec. 31, 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 of management services on rigs owned by third-parties. Floaters and Jackups 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 (loss) and are included in "Reconciling Items." We measure segment assets as property and equipment. The full operating results included below for ARO (representing only results 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 each of the years in the three-year period ended December 31, 2019 is presented below (in millions). Year Ended December 31, 2019
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 1,014.4 |  |  | $ | 834.6 |  |  | $ | 410.5 |  |  | $ | 204.2 |  |  | $ | (410.5 | ) |  | $ | 2,053.2 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 898.6 |  |  | 788.9 |  |  | 280.2 |  |  | 118.5 |  |  | (280.2 | ) |  | 1,806.0 |
Loss on impairment | 88.2 |  |  | 10.2 |  |  | — |  |  | — |  |  | 5.6 |  |  | 104.0 |
Depreciation | 378.6 |  |  | 212.4 |  |  | 40.3 |  |  | — |  |  | (21.6 | ) |  | 609.7 |
General and administrative | — |  |  | — |  |  | 27.1 |  |  | — |  |  | 161.8 |  |  | 188.9 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | (12.6 | ) |  | (12.6 | )
Operating income (loss) | $ | (351.0 | ) |  | $ | (176.9 | ) |  | $ | 62.9 |  |  | $ | 85.7 |  |  | $ | (288.7 | ) |  | $ | (668.0 | )
Property and equipment, net | $ | 10,073.1 |  |  | $ | 4,322.7 |  |  | $ | 650.7 |  |  | $ | 701.1 |  |  | $ | (650.7 | ) |  | $ | 15,096.9 |
Capital expenditures | $ | 31.4 |  |  | $ | 184.6 |  |  | $ | 27.5 |  |  | $ | — |  |  | $ | (16.5 | ) |  | $ | 227.0 |
Year Ended December 31, 2018
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 1,013.5 |  |  | $ | 630.9 |  |  | $ | — |  |  | $ | 61.0 |  |  | $ | — |  |  | $ | 1,705.4 |
Operating expenses |  |  |  |  |  |  |  |  |  |  | — |
Contract drilling (exclusive of depreciation) | 737.4 |  |  | 526.5 |  |  | — |  |  | 55.5 |  |  | — |  |  | 1,319.4 |
Loss on impairment | — |  |  | 40.3 |  |  | — |  |  | — |  |  | — |  |  | 40.3 |
Depreciation | 311.8 |  |  | 153.3 |  |  | — |  |  | — |  |  | 13.8 |  |  | 478.9 |
General and administrative | — |  |  | — |  |  | — |  |  | — |  |  | 102.7 |  |  | 102.7 |
Operating income (loss) | $ | (35.7 | ) |  | $ | (89.2 | ) |  | $ | — |  |  | $ | 5.5 |  |  | $ | (116.5 | ) |  | $ | (235.9 | )
Property and equipment, net | $ | 9,465.6 |  |  | $ | 3,114.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 36.5 |  |  | $ | 12,616.2 |
Capital expenditures | $ | 105.5 |  |  | $ | 317.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 3.5 |  |  | $ | 426.7 |
Year Ended December 31, 2017
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 1,143.5 |  |  | $ | 640.3 |  |  | $ | — |  |  | $ | 59.2 |  |  | $ | — |  |  | $ | 1,843.0 |
Operating expenses |  |  |  |  |  |  |  |  |  |  | — |
Contract drilling (exclusive of depreciation) | 624.2 |  |  | 512.1 |  |  | — |  |  | 53.2 |  |  | — |  |  | 1,189.5 |
Loss on impairment | 174.7 |  |  | 8.2 |  |  | — |  |  | — |  |  | — |  |  | 182.9 |
Depreciation | 297.4 |  |  | 131.5 |  |  | — |  |  | — |  |  | 15.9 |  |  | 444.8 |
General and administrative | — |  |  | — |  |  | — |  |  | — |  |  | 157.8 |  |  | 157.8 |
Operating income (loss) | $ | 47.2 |  |  | $ | (11.5 | ) |  | $ | — |  |  | $ | 6.0 |  |  | $ | (173.7 | ) |  | $ | (132.0 | )
Property and equipment, net | $ | 9,650.9 |  |  | $ | 3,177.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 45.2 |  |  | $ | 12,873.7 |
Capital expenditures | $ | 470.3 |  |  | $ | 62.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 4.3 |  |  | $ | 536.7 |
Information about Geographic Areas As of December 31, 2019, our Floaters segment consisted of 16 drillships, eight dynamically positioned semisubmersible rigs and two moored semisubmersible rigs deployed in various locations. Of the drillships included in our Floaters segment, two ultra-deepwater drillships are under construction in South Korea. Our Jackups segment consisted of 41 jackup rigs which were deployed in various locations and our Other segment consisted of nine jackup rigs that are leased to our 50/50 joint venture with Saudi Aramco. Additionally, we had three rigs classified as held-for-sale. As of December 31, 2019, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total |  | ARO
North & South America | 10 |  | 8 |  | — |  | 18 |  | —
Europe & the Mediterranean | 7 |  | 14 |  | — |  | 21 |  | —
Middle East & Africa | 4 |  | 12 |  | 9 |  | 25 |  | 7
Asia & Pacific Rim | 3 |  | 7 |  | — |  | 10 |  | —
Asia & Pacific Rim (under construction) | 2 |  | — |  | — |  | 2 |  | —
Held-for-sale | 1 |  | 2 |  | — |  | 3 |  | —
Total | 27 |  | 43 |  | 9 |  | 79 |  | 7
We provide management services on two rigs owned by third-parties not included in the table above. For purposes of our long-lived asset geographic disclosure, we attribute assets to the geographic location of the drilling rig as of the end of the applicable year. For new construction projects, assets are attributed to the location of future operation if known or to the location of construction if the ultimate location of operation is undetermined. Information by country for those countries that account for more than 10% of our long-lived assets as well as the United Kingdom, our country of domicile, was as follows (in millions):
| Long-lived Assets
| 2019 |  | 2018 |  | 2017
Spain | $ | 3,012.4 |  |  | $ | 2,306.6 |  |  | $ | 2,004.2 |
United States | 2,943.9 |  |  | 2,270.0 |  |  | 2,764.9 |
Saudi Arabia | 1,257.7 |  |  | 668.6 |  |  | 93.6 |
United Kingdom | 1,204.0 |  |  | 1,185.2 |  |  | 609.4 |
Nigeria | 787.3 |  |  | 1,368.2 |  |  | 583.3 |
Singapore | 22.6 |  |  | 23.9 |  |  | 2,859.3 |
Other countries | 5,869.0 |  |  | 4,793.7 |  |  | 3,959.0 |
Total | $ | 15,096.9 |  |  | $ | 12,616.2 |  |  | $ | 12,873.7 |

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- 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
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