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Segment Information | 12 Months Ended
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Dec. 31, 2023
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 5 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. Segment information for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) are presented below (in millions). Year Ended December 31, 2023 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 948.7 |  |  | $ | 659.6 |  |  | $ | 496.6 |  |  | $ | 175.9 |  |  | $ | (496.6) |  |  | $ | 1,784.2 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 812.0 |  |  | 517.4 |  |  | 365.9 |  |  | 75.2 |  |  | (226.9) |  |  | 1,543.6 |
Depreciation | 55.8 |  |  | 40.0 |  |  | 65.9 |  |  | 5.0 |  |  | (65.6) |  |  | 101.1 |
General and administrative | — |  |  | — |  |  | 22.2 |  |  | — |  |  | 77.1 |  |  | 99.3 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 13.3 |  |  | 13.3 |
Operating income | $ | 80.9 |  |  | $ | 102.2 |  |  | $ | 42.6 |  |  | $ | 95.7 |  |  | $ | (267.9) |  |  | $ | 53.5 |
Property and equipment, net | $ | 1,035.5 |  |  | $ | 480.8 |  |  | $ | 1,036.6 |  |  | $ | 52.1 |  |  | $ | (971.2) |  |  | $ | 1,633.8 |
Capital expenditures | $ | 562.0 |  |  | $ | 132.3 |  |  | $ | 300.8 |  |  | $ | — |  |  | $ | (299.0) |  |  | $ | 696.1 |
Year Ended December 31, 2022 (Successor)
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  | Consolidated Total
Revenues | $ | 700.5 |  |  | $ | 744.2 |  |  | $ | 459.5 |  |  | $ | 157.8 |  |  | $ | (459.5) |  |  | $ | 1,602.5 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 646.0 |  |  | 538.9 |  |  | 341.8 |  |  | 76.4 |  |  | (219.9) |  |  | 1,383.2 |
Loss on impairment | 34.5 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 34.5 |
Depreciation | 50.0 |  |  | 36.1 |  |  | 63.4 |  |  | 4.6 |  |  | (62.9) |  |  | 91.2 |
General and administrative | — |  |  | — |  |  | 18.7 |  |  | — |  |  | 62.2 |  |  | 80.9 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 24.5 |  |  | 24.5 |
Operating income (loss) | $ | (30.0) |  |  | $ | 169.2 |  |  | $ | 35.6 |  |  | $ | 76.8 |  |  | $ | (214.4) |  |  | $ | 37.2 |
Property and equipment, net | $ | 487.5 |  |  | $ | 391.7 |  |  | $ | 775.6 |  |  | $ | 56.8 |  |  | $ | (734.4) |  |  | $ | 977.2 |
Capital expenditures | $ | 152.9 |  |  | $ | 53.5 |  |  | $ | 103.7 |  |  | $ | — |  |  | $ | (103.1) |  |  | $ | 207.0 |
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 |  |  | (176.9) |  |  | 724.1 |
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 |  |  | $ | (124.8) |  |  | $ | (7.3) |
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 |
Information about Geographic Areas As of December 31, 2023, our Floaters segment consisted of 13 drillships, four dynamically positioned semisubmersible rigs and one moored semisubmersible rig deployed in various locations. Our Jackups segment consisted of 27 jackup rigs which were deployed in various locations and our Other segment consisted of eight jackup rigs which are leased to our 50/50 unconsolidated joint venture with Saudi Aramco. As of December 31, 2023, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total Valaris |  | ARO
Middle East & Africa | 3 |  | 5 |  | 8 |  | 16 |  | 8
North & South America | 9 |  | 7 |  | — |  | 16 |  | —
Europe | 4 |  | 12 |  | — |  | 16 |  | —
Asia & Pacific Rim | 2 |  | 3 |  | — |  | 5 |  | —
Total | 18 |  | 27 |  | 8 |  | 53 |  | 8
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. ARO has ordered one newbuild jackup which is under construction in the Middle East and expected to be delivered in first half of 2024. This rig is not included in the table above. 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
| December 31, 2023 |  | December 31, 2022
Spain | $ | 438.9 |  |  | $ | 117.7 |
Brazil | 374.5 |  |  | 102.0 |
United Kingdom | 277.8 |  |  | 185.2 |
United States | 206.5 |  |  | 166.3 |
Other countries(1) | 410.7 |  |  | 427.0 |
Total | $ | 1,708.4 |  |  | $ | 998.2 |
(1)Other countries includes countries where individually we had long-lived assets representing less than 10% of total long-lived assets. For purposes of our geographic disclosures above, 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. Any rigs in transit as of the end of the year are included in the location to which they are mobilizing.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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