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Equity Method Investment in ARO (Tables) | 12 Months Ended
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Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Summarized financial information for ARO is as follows (in millions):
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | April 11, 2019 - December 31, 2019
Revenues | $ | 470.6 |  | $ | 549.4 |  | $ | 410.5 |
Operating expenses |  |  |
Contract drilling (exclusive of depreciation) | 362.3 |  | 388.2 |  | 280.2 |
Depreciation | 65.2 |  | 54.8 |  | 40.3 |
General and administrative | 17.8 |  | 24.2 |  | 27.1 |
Operating income | 25.3 |  | 82.2 |  | 62.9 |
Other expense, net | 13.4 |  | 26.7 |  | 28.6 |
Provision for income taxes | 7.9 |  | 14.2 |  | 9.7 |
Net income | $ | 4.0 |  | $ | 41.3 |  | $ | 24.6 |
| December 31, 2021 | December 31, 2020 |
Cash and cash equivalents | $ | 270.8 |  | $ | 237.7 |  |
Other current assets | 135.0 |  | 120.9 |  |
Non-current assets | 775.8 |  | 804.0 |  |
Total assets | $ | 1,181.6 |  | $ | 1,162.6 |  |
Current liabilities | $ | 79.9 |  | $ | 70.8 |  |
Non-current liabilities | 956.7 |  | 950.8 |  |
Total liabilities | $ | 1,036.6 |  | $ | 1,021.6 |  |
A reconciliation of those components is presented below (in millions):
| Successor |  |  | Predecessor
| Eight Months Ended December 31, 2021 |  |  | Four Months Ended April 30, 2021 | Year Ended December 31, 2020 | April 11, 2019 - December 31, 2019
50% interest in ARO net income (loss) | $ | (4.0) |  |  |  | $ | 6.0 |  | $ | 20.7 |  | $ | 12.3 |
Amortization of basis differences | 10.1 |  |  |  | (2.9) |  | (28.5) |  | (24.9) |
Equity in earnings (losses) of ARO | $ | 6.1 |  |  |  | $ | 3.1 |  | $ | (7.8) |  | $ | (12.6) |
The following table summarizes the total assets and liabilities as reflected in our Consolidated Balance Sheets as well as our maximum exposure to loss related to ARO (in millions). Our maximum exposure to loss is limited to (1) our equity investment in ARO; (2) the carrying amount of our shareholder notes receivable; and (3) other receivables and contract assets from ARO, partially offset by contract liabilities as well as payables to ARO.
| Successor |  |  | Predecessor
| December 31, 2021 |  |  | December 31, 2020 |
Total assets | $ | 348.1 |  |  |  | $ | 585.2 |  |
Less: total liabilities | 49.1 |  |  |  | 30.9 |  |
Maximum exposure to loss | $ | 299.0 |  |  |  | $ | 554.3 |  |
Schedule of Related Party Transactions | Revenues recognized by us related to the Lease Agreements, Transition Services Agreement and Secondment Agreement are as follows (in millions):
| Successor |  |  | Predecessor
| Eight Months Ended December 31, 2021 |  |  | Four Months Ended April 30, 2021 | Year Ended December 31, 2020 | April 11, 2019 - December 31, 2019
Lease revenue | $ | 35.4 |  |  |  | $ | 21.7 |  | $ | 52.2 |  | $ | 58.2 |
Secondment revenue | 1.5 |  |  |  | 1.1 |  | 21.6 |  | 49.9 |
Transition Services revenue | — |  |  |  | — |  | 1.3 |  | 17.3 |
Total revenue from ARO (1) | $ | 36.9 |  |  |  | $ | 22.8 |  | $ | 75.1 |  | $ | 125.4 |
(1) All of the revenues presented above are included in our Other segment in our segment disclosures. See "Note 1 7- Segment Information" for additional information.

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates. + References No definition available. + Details
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