XML 31 R19.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2022
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. Floaters, Jackups and ARO are also reportable segments. Our onshore support costs included within Contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, those costs are included in “Reconciling Items.” 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." 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 3 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. Segment information for the three and nine months ended September 30, 2022 (Successor), the three and five months ended September 30, 2021 (Successor), and the four months ended April 30, 2021 (Predecessor), respectively, are presented below (in millions). Three Months Ended September 30, 2022 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total |
Revenues | $ | 201.7 |  |  | $ | 195.9 |  |  | $ | 111.4 |  |  | $ | 39.6 |  |  | $ | (111.4) |  |  |  | $ | 437.2 |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 160.5 |  |  | 128.0 |  |  | 90.0 |  |  | 17.8 |  |  | (59.6) |  |  |  | 336.7 |  |
Depreciation | 12.6 |  |  | 8.7 |  |  | 15.4 |  |  | 1.2 |  |  | (15.3) |  |  |  | 22.6 |  |
General and administrative | — |  |  | — |  |  | 4.7 |  |  | — |  |  | 14.5 |  |  |  | 19.2 |  |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 2.9 |  |  |  | 2.9 |  |
Operating income (loss) | $ | 28.6 |  |  | $ | 59.2 |  |  | $ | 1.3 |  |  | $ | 20.6 |  |  | $ | (48.1) |  |  |  | $ | 61.6 |  |
Property and equipment, net | $ | 473.4 |  |  | $ | 386.7 |  |  | $ | 757.7 |  |  | $ | 57.7 |  |  | $ | (721.9) |  |  |  | $ | 953.6 |  |
Three Months Ended September 30, 2021 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total
Revenues | $ | 104.3 |  |  | $ | 186.3 |  |  | $ | 117.7 |  |  | $ | 36.1 |  |  | $ | (117.7) |  |  |  | $ | 326.7 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 91.6 |  |  | 141.7 |  |  | 94.4 |  |  | 14.2 |  |  | (67.3) |  |  |  | 274.6 |
Depreciation | 11.4 |  |  | 12.1 |  |  | 16.8 |  |  | 0.9 |  |  | (16.8) |  |  |  | 24.4 |
General and administrative | — |  |  | — |  |  | 5.4 |  |  | — |  |  | 21.8 |  |  |  | 27.2 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 2.6 |  |  |  | 2.6 |
Operating income (loss) | $ | 1.3 |  |  | $ | 32.5 |  |  | $ | 1.1 |  |  | $ | 21.0 |  |  | $ | (52.8) |  |  |  | $ | 3.1 |
Property and equipment, net | $ | 416.2 |  |  | $ | 394.2 |  |  | $ | 728.3 |  |  | $ | 47.3 |  |  | $ | (693.7) |  |  |  | $ | 892.3 |
Nine Months Ended September 30, 2022 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total
Revenues | $ | 489.5 |  |  | $ | 562.4 |  |  | $ | 339.1 |  |  | $ | 117.0 |  |  | $ | (339.1) |  |  |  | $ | 1,168.9 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 473.4 |  |  | 409.4 |  |  | 256.3 |  |  | 58.0 |  |  | (167.3) |  |  |  | 1,029.8 |
Loss on impairment | 34.5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | 34.5 |
Depreciation | 37.1 |  |  | 26.5 |  |  | 47.3 |  |  | 3.4 |  |  | (46.9) |  |  |  | 67.4 |
General and administrative | — |  |  | — |  |  | 13.1 |  |  | — |  |  | 43.9 |  |  |  | 57.0 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 15.9 |  |  |  | 15.9 |
Operating income (loss) | $ | (55.5) |  |  | $ | 126.5 |  |  | $ | 22.4 |  |  | $ | 55.6 |  |  | $ | (152.9) |  |  |  | $ | (3.9) |
Property and equipment, net | $ | 473.4 |  |  | $ | 386.7 |  |  | $ | 757.7 |  |  | $ | 57.7 |  |  | $ | (721.9) |  |  |  | $ | 953.6 |
Five Months Ended September 30, 2021 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total
Revenues | $ | 154.0 |  |  | $ | 314.8 |  |  | $ | 201.7 |  |  | $ | 60.7 |  |  | $ | (201.7) |  |  |  | $ | 529.5 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 136.9 |  |  | 237.1 |  |  | 157.3 |  |  | 23.4 |  |  | (111.5) |  |  |  | 443.2 |
Depreciation | 19.3 |  |  | 19.9 |  |  | 26.5 |  |  | 1.7 |  |  | (26.4) |  |  |  | 41.0 |
General and administrative | — |  |  | — |  |  | 8.5 |  |  | — |  |  | 31.4 |  |  |  | 39.9 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 7.4 |  |  |  | 7.4 |
Operating income (loss) | $ | (2.2) |  |  | $ | 57.8 |  |  | $ | 9.4 |  |  | $ | 35.6 |  |  | $ | (87.8) |  |  |  | $ | 12.8 |
Property and equipment, net | $ | 416.2 |  |  | $ | 394.2 |  |  | $ | 728.3 |  |  | $ | 47.3 |  |  | $ | (693.7) |  |  |  | $ | 892.3 |
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 |
Information about Geographic Areas As of September 30, 2022, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total Valaris |  | ARO |  |
North & South America | 7 |  | 6 |  | — |  | 13 |  | — |  |
Europe & the Mediterranean | 4 |  | 12 |  | — |  | 16 |  | — |  |
Middle East & Africa | 3 |  | 6 |  | 8 |  | 17 |  | 7 |  |
Asia & Pacific Rim | 2 |  | 4 |  | — |  | 6 |  | — |  |
Total | 16 |  | 28 |  | 8 |  | 52 |  | 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 recently constructed drillships 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.

X
- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingInformationRevenueAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration