Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting Information, Revenue for Reportable Segment [Abstract]

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