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Segment Information | 3 Months Ended
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Mar. 31, 2021
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 Rig Lease Agreements, the Secondment Agreement and the Transition Services 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 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 months ended March 31, 2021 and 2020 is presented below (in millions): Three Months Ended March 31, 2021
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total |
Revenues | $ | 97.3 |  |  | $ | 172.6 |  |  | $ | 122.7 |  |  | $ | 37.2 |  |  | $ | (122.7) |  |  | $ | 307.1 |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 98.9 |  |  | 135.4 |  |  | 86.3 |  |  | 17.9 |  |  | (86.3) |  |  | 252.2 |  |
Loss on impairment | 756.5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 756.5 |  |
Depreciation | 56.2 |  |  | 52.4 |  |  | 16.1 |  |  | 11.3 |  |  | (13.9) |  |  | 122.1 |  |
General and administrative | — |  |  | — |  |  | 3.0 |  |  | — |  |  | 21.3 |  |  | 24.3 |  |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 1.9 |  |  | 1.9 |  |
Operating income (loss) | $ | (814.3) |  |  | $ | (15.2) |  |  | $ | 17.3 |  |  | $ | 8.0 |  |  | $ | (41.9) |  |  | $ | (846.1) |  |
Property and equipment, net | $ | 5,685.4 |  |  | $ | 3,778.9 |  |  | $ | 729.2 |  |  | $ | 566.3 |  |  | $ | (675.9) |  |  | $ | 10,083.9 |  |
Three Months Ended March 31, 2020
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 179.6 |  |  | $ | 212.8 |  |  | $ | 140.3 |  |  | $ | 64.2 |  |  | $ | (140.3) |  |  | $ | 456.6 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 213.9 |  |  | 226.1 |  |  | 108.3 |  |  | 36.0 |  |  | (108.3) |  |  | 476.0 |
Loss on impairment | 2,554.3 |  |  | 253.9 |  |  | — |  |  | — |  |  | — |  |  | 2,808.2 |
Depreciation | 89.4 |  |  | 58.5 |  |  | 13.0 |  |  | 11.1 |  |  | (7.5) |  |  | 164.5 |
General and administrative | — |  |  | — |  |  | 8.3 |  |  | — |  |  | 45.1 |  |  | 53.4 |
Equity in (losses) of ARO | — |  |  | — |  |  | — |  |  | — |  |  | (6.3) |  |  | (6.3) |
Operating income (loss) | $ | (2,678.0) |  |  | $ | (325.7) |  |  | $ | 10.7 |  |  | $ | 17.1 |  |  | $ | (75.9) |  |  | $ | (3,051.8) |
Property and equipment, net | $ | 7,442.5 |  |  | $ | 4,036.0 |  |  | $ | 740.6 |  |  | $ | 610.9 |  |  | $ | (672.8) |  |  | $ | 12,157.2 |
Information about Geographic Areas As of March 31, 2021, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total Valaris |  | ARO |  |
North & South America | 5 |  | 6 |  | — |  | 11 |  | — |  |
Europe & the Mediterranean | 7 |  | 16 |  | — |  | 23 |  | — |  |
Middle East & Africa | 2 |  | 8 |  | 9 |  | 19 |  | 7 |  |
Asia & Pacific Rim | 2 |  | 6 |  | — |  | 8 |  | — |  |
Total | 16 |  | 36 |  | 9 |  | 61 |  | 7 |  |
We provide management services on two rigs owned by third-parties not included in the table above. We are a party to contracts for the construction of two drillships in South Korea, VALARIS DS-13 and VALARIS DS-14, that are not included in the table above. ARO has ordered two newbuild jackups which are under construction in the Middle East that are not included in the table above.

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