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Segment Information | 12 Months Ended
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Dec. 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 Lease Agreements, the Secondment Agreement and the Transition Services Agreement. Floaters, Jackups and ARO are also reportable segments. Upon emergence, we ceased allocation of our onshore support costs included within Contract drilling expenses to our operating segments for purposes of measuring segment operating income (loss) and as such, those costs are included in “Reconciling Items”. We have adjusted the historical periods to conform with current period presentation. Further, 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, net. 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 6 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. Segment information for the eight months ended December 31, 2021 (Successor), the four months ended April 30, 2021 (Predecessor), the years ended December 31, 2020 and 2019 (Predecessor), respectively are presented below (in millions). Eight Months Ended December 31, 2021 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 254.5 |  |  | $ | 487.1 |  |  | $ | 307.1 |  |  | $ | 93.4 |  |  | $ | (307.1) |  |  | $ | 835.0 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 250.7 |  |  | 365.2 |  |  | 246.2 |  |  | 38.9 |  |  | (172.3) |  |  | 728.7 |
Depreciation | 31.0 |  |  | 32.0 |  |  | 44.2 |  |  | 2.8 |  |  | (43.9) |  |  | 66.1 |
General and administrative | — |  |  | — |  |  | 13.6 |  |  | — |  |  | 44.6 |  |  | 58.2 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 6.1 |  |  | 6.1 |
Operating income (loss) | $ | (27.2) |  |  | $ | 89.9 |  |  | $ | 3.1 |  |  | $ | 51.7 |  |  | $ | (129.4) |  |  | $ | (11.9) |
Property and equipment, net | $ | 408.2 |  |  | $ | 401.9 |  |  | $ | 730.6 |  |  | $ | 46.0 |  |  | $ | (695.8) |  |  | $ | 890.9 |
Capital expenditures | $ | 26.0 |  |  | $ | 23.7 |  |  | $ | 41.8 |  |  | $ | — |  |  | $ | (41.3) |  |  | $ | 50.2 |
Four Months Ended April 30, 2021 (Predecessor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 115.7 |  |  | $ | 232.4 |  |  | $ | 163.5 |  |  | $ | 49.3 |  |  | $ | (163.5) |  |  | $ | 397.4 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 106.5 |  |  | 175.0 |  |  | 116.1 |  |  | 19.9 |  |  | (73.7) |  |  | 343.8 |
Loss on impairment | 756.5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 756.5 |
Depreciation | 72.1 |  |  | 69.7 |  |  | 21.0 |  |  | 14.8 |  |  | (18.0) |  |  | 159.6 |
General and administrative | — |  |  | — |  |  | 4.2 |  |  | — |  |  | 26.5 |  |  | 30.7 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 3.1 |  |  | 3.1 |
Operating income (loss) | $ | (819.4) |  |  | $ | (12.3) |  |  | $ | 22.2 |  |  | $ | 14.6 |  |  | $ | (95.2) |  |  | $ | (890.1) |
Property and equipment, net | $ | 419.3 |  |  | $ | 401.4 |  |  | $ | 730.7 |  |  | $ | 50.5 |  |  | $ | (692.8) |  |  | $ | 909.1 |
Capital expenditures | $ | 3.3 |  |  | $ | 5.4 |  |  | $ | 14.9 |  |  | $ | — |  |  | $ | (14.9) |  |  | $ | 8.7 |
Year Ended December 31, 2020 (Predecessor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 505.8 |  |  | $ | 765.3 |  |  | $ | 549.4 |  |  | $ | 156.1 |  |  | $ | (549.4) |  |  | $ | 1,427.2 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 566.1 |  |  | 659.5 |  |  | 388.2 |  |  | 82.8 |  |  | (226.2) |  |  | 1,470.4 |
Loss on impairment | 3,386.2 |  |  | 254.3 |  |  | — |  |  | 5.7 |  |  | — |  |  | 3,646.2 |
Depreciation | 262.8 |  |  | 217.2 |  |  | 54.8 |  |  | 44.8 |  |  | (38.8) |  |  | 540.8 |
General and administrative | — |  |  | — |  |  | 24.2 |  |  | — |  |  | 190.4 |  |  | 214.6 |
Other operating income | 118.1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 118.1 |
Equity in losses of ARO | — |  |  | — |  |  | — |  |  | — |  |  | (7.8) |  |  | (7.8) |
Operating income (loss) | $ | (3,591.2) |  |  | $ | (365.7) |  |  | $ | 82.2 |  |  | $ | 22.8 |  |  | $ | (482.6) |  |  | $ | (4,334.5) |
Property and equipment, net | $ | 6,413.4 |  |  | $ | 3,912.6 |  |  | $ | 736.2 |  |  | $ | 577.9 |  |  | $ | (679.6) |  |  | $ | 10,960.5 |
Capital expenditures | $ | 25.1 |  |  | $ | 58.9 |  |  | $ | 136.1 |  |  | $ | — |  |  | $ | (126.3) |  |  | $ | 93.8 |
Year Ended December 31, 2019 (Predecessor)
| 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) | 785.0 |  |  | 711.3 |  |  | 280.2 |  |  | 111.0 |  |  | (79.7) |  |  | 1,807.8 |
Loss on impairment | 88.2 |  |  | 10.2 |  |  | — |  |  | — |  |  | 5.6 |  |  | 104.0 |
Depreciation | 362.3 |  |  | 203.3 |  |  | 40.3 |  |  | 25.5 |  |  | (21.7) |  |  | 609.7 |
General and administrative | — |  |  | — |  |  | 27.1 |  |  | — |  |  | 161.8 |  |  | 188.9 |
Equity in losses of ARO | — |  |  | — |  |  | — |  |  | — |  |  | (12.6) |  |  | (12.6) |
Operating income (loss) | $ | (221.1) |  |  | $ | (90.2) |  |  | $ | 62.9 |  |  | $ | 67.7 |  |  | $ | (489.1) |  |  | $ | (669.8) |
Property and equipment, net | $ | 10,073.1 |  |  | $ | 4,322.7 |  |  | $ | 650.7 |  |  | $ | 620.9 |  |  | $ | (570.5) |  |  | $ | 15,096.9 |
Capital expenditures | $ | 31.4 |  |  | $ | 184.6 |  |  | $ | 27.5 |  |  | $ | — |  |  | $ | (16.5) |  |  | $ | 227.0 |
Information about Geographic Areas As of December 31, 2021 (Successor), our Floaters segment consisted of 11 drillships, four dynamically positioned semisubmersible rigs and one moored semisubmersible rig deployed in various locations. Our Jackups segment consisted of 33 jackup rigs which were deployed in various locations and our Other segment consisted of seven jackup rigs which are leased to our 50/50 joint venture with Saudi Aramco. As of December 31, 2021 (Successor), the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total Valaris |  | ARO
North & South America | 6 |  | 6 |  | — |  | 12 |  | —
Europe & the Mediterranean | 6 |  | 12 |  | — |  | 18 |  | —
Middle East & Africa | 2 |  | 8 |  | 7 |  | 17 |  | 7
Asia & Pacific Rim | 2 |  | 7 |  | — |  | 9 |  | —
Total | 16 |  | 33 |  | 7 |  | 56 |  | 7
We provide management services in the U.S. Gulf of Mexico on two rigs owned by a third party not included in the table above. We are a party to contracts whereby we have the option to take delivery of two drillships, 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. For purposes of our long-lived asset geographic disclosure, we attribute assets to the geographic location of the drilling rig or operating lease, in the case of our right-of-use assets, 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, was as follows (in millions):
| Long-lived Assets
| Successor |  |  | Predecessor
| December 31, 2021 |  |  | December 31, 2020 |  | December 31, 2019
United States | $ | 152.1 |  |  |  | $ | 1,811.9 |  |  | $ | 2,972.4 |
Spain | 145.8 |  |  |  | 2,122.6 |  |  | 3,012.4 |
United Kingdom | 142.4 |  |  |  | 2,584.0 |  |  | 1,210.5 |
Saudi Arabia | 75.2 |  |  |  | 1,183.7 |  |  | 1,259.3 |
Other countries(1) | 395.9 |  |  |  | 3,294.1 |  |  | 6,700.4 |
Total | $ | 911.4 |  |  |  | $ | 10,996.3 |  |  | $ | 15,155.0 |
(1)Other countries includes countries where individually we had long-lived assets representing less than 10% of total long-lived assets

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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