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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)
FloatersJackupsAROOtherReconciling ItemsConsolidated 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 
Depreciation12.6 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)
FloatersJackupsAROOtherReconciling ItemsConsolidated 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 
Depreciation11.4 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)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$489.5 $562.4 $339.1 $117.0 $(339.1)$1,168.9 
Operating expenses
Contract drilling (exclusive of depreciation)473.4 409.4 256.3 58.0 (167.3)1,029.8 
Loss on impairment34.5 — — — — 34.5 
Depreciation37.1 26.5 47.3 3.4 (46.9)67.4 
General and administrative— — 13.1 — 43.9 57.0 
Equity in earnings of ARO— — — — 15.9 15.9 
Operating income (loss)$(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)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$154.0 $314.8 $201.7 $60.7 $(201.7)$529.5 
Operating expenses
Contract drilling (exclusive of depreciation)136.9 237.1 157.3 23.4 (111.5)443.2 
Depreciation19.3 19.9 26.5 1.7 (26.4)41.0 
General and administrative— — 8.5 — 31.4 39.9 
Equity in earnings of ARO— — — — 7.4 7.4 
Operating income (loss)$(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)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$115.7 $232.4 163.5 $49.3 $(163.5)$397.4 
Operating expenses
Contract drilling (exclusive of depreciation)106.5 175.0 116.1 19.9 (73.7)343.8 
Loss on impairment756.5 — — — — 756.5 
Depreciation72.1 69.7 21.0 14.8 (18.0)159.6 
General and administrative— — 4.2 — 26.5 30.7 
Equity in earnings of ARO— — — — 3.1 3.1 
Operating income (loss)$(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:
FloatersJackupsOtherTotal ValarisARO
North & South America 76—13—
Europe & the Mediterranean412—16—
Middle East & Africa368177
Asia & Pacific Rim24—6—
Total16288527

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.