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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information Segment Information
 
Our business consists of four operating segments: (1) Floaters, which includes our drillships and semisubmersible rigs, (2) Jackups, (3) ARO and (4) Other, which consists of management services on rigs owned by third-parties and the activities associated with our arrangements with ARO under the Transition Services Agreement, Rig Lease Agreements and Secondment Agreement. Floaters, Jackups and ARO are also reportable segments.

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." 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. 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 - Equity Method Investment in ARO" for additional information on ARO and related arrangements.
Segment information for the three and six months ended June 30, 2020 and 2019 is presented below (in millions):

Three Months Ended June 30, 2020

 
Floaters
 
Jackups
 
ARO
 
Other
 
Reconciling Items
 
Consolidated Total
Revenues
$
163.6

 
$
186.3

 
$
146.0

 
$
38.9

 
$
(146.0
)
 
$
388.8

Operating expenses
 
 
 
 
 
 
 
 
 
 


Contract drilling (exclusive of depreciation)
170.8

 
182.7

 
112.5

 
17.2

 
(112.5
)
 
370.7

Loss on impairment
831.9

 
0.4

 
—

 
5.7

 
—

 
838.0

Depreciation
62.0

 
52.8

 
13.3

 
11.2

 
(7.8
)
 
131.5

General and administrative
—

 
—

 
7.1

 
—

 
55.5

 
62.6

Equity in earnings of ARO
—

 
—

 
—

 
—

 
(5.2
)
 
(5.2
)
Operating income (loss)
$
(901.1
)

$
(49.6
)

$
13.1


$
4.8


$
(86.4
)
 
$
(1,019.2
)
Property and equipment, net
$
6,536.9

 
$
4,000.6

 
$
739.7

 
$
655.1

 
$
(739.7
)
 
$
11,192.6


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


Six Months Ended June 30, 2020
 
Floaters
 
Jackups
 
ARO
 
Other
 
Reconciling Items
 
Consolidated Total
Revenues
$
343.2

 
$
399.1

 
$
286.3

 
$
103.1

 
$
(286.3
)
 
$
845.4

Operating expenses
 
 
 
 
 
 
 
 
 
 


Contract drilling (exclusive of depreciation)
384.7

 
408.8

 
220.8

 
53.2

 
(220.8
)
 
846.7

Loss on impairment
3,386.2

 
254.3

 
—

 
5.7

 
—

 
3,646.2

Depreciation
151.4

 
111.3

 
26.3

 
22.3

 
(15.3
)
 
296.0

General and administrative
—

 
—

 
15.4

 
—

 
100.6

 
116.0

Equity in earnings of ARO
—

 
—

 
—

 
—

 
(11.5
)
 
(11.5
)
Operating income (loss)
$
(3,579.1
)
 
$
(375.3
)
 
$
23.8

 
$
21.9

 
$
(162.3
)
 
$
(4,071.0
)
Property and equipment, net
$
6,536.9

 
$
4,000.6

 
$
739.7

 
$
655.1

 
$
(739.7
)
 
$
11,192.6


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



Information about Geographic Areas

As of June 30, 2020, the geographic distribution of our and ARO's drilling rigs was as follows:
 
Floaters
 
Jackups
 
Other
 
Total Valaris
 
ARO
North & South America
7
 
7
 
—
 
14
 
—
Europe & the Mediterranean
5
 
14
 
—
 
19
 
—
Middle East & Africa
2
 
12
 
9
 
23
 
7
Asia & Pacific Rim
3
 
6
 
—
 
9
 
—
Asia & Pacific Rim (under construction)
2
 
—
 
—
 
2
 
—
Held-for-sale
6
 
1
 
—
 
7
 
—
Total
25
 
40

9
 
74

7

We provide management services on two rigs owned by third-parties not included in the table above.