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Segment Information | 3 Months Ended
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Mar. 31, 2024
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 are 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. Similarly, the Property and equipment, net balances presented below for ARO are not included within our condensed consolidated balance sheets and thus are also deducted under "Reconciling Items." Segment information for the three months ended March 31, 2024 and 2023, respectively, are presented below (in millions): Three Months Ended March 31, 2024
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total
Revenues | $ | 324.4 |  |  | $ | 152.3 |  |  | $ | 138.3 |  |  | $ | 48.3 |  |  | $ | (138.3) |  |  |  | $ | 525.0 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 253.4 |  |  | 133.9 |  |  | 98.3 |  |  | 22.2 |  |  | (63.0) |  |  |  | 444.8 |
Depreciation | 13.2 |  |  | 10.4 |  |  | 19.0 |  |  | 1.3 |  |  | (17.1) |  |  |  | 26.8 |
General and administrative | — |  |  | — |  |  | 5.8 |  |  | — |  |  | 20.7 |  |  |  | 26.5 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 2.4 |  |  |  | 2.4 |
Operating income | $ | 57.8 |  |  | $ | 8.0 |  |  | $ | 15.2 |  |  | $ | 24.8 |  |  | $ | (76.5) |  |  |  | $ | 29.3 |
Property and equipment, net | $ | 1,080.6 |  |  | $ | 493.8 |  |  | $ | 1,050.1 |  |  | $ | 86.5 |  |  | $ | (978.7) |  |  |  | $ | 1,732.3 |
Three Months Ended March 31, 2023
| Floaters |  | Jackups |  | ARO |  | Other |  | Reconciling Items |  |  | Consolidated Total
Revenues | $ | 214.8 |  |  | $ | 169.8 |  |  | $ | 123.6 |  |  | $ | 45.5 |  |  | $ | (123.6) |  |  |  | $ | 430.1 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling (exclusive of depreciation) | 174.6 |  |  | 148.9 |  |  | 90.9 |  |  | 20.2 |  |  | (57.4) |  |  |  | 377.2 |
Depreciation | 13.0 |  |  | 9.0 |  |  | 15.0 |  |  | 1.3 |  |  | (15.0) |  |  |  | 23.3 |
General and administrative | — |  |  | — |  |  | 4.6 |  |  | — |  |  | 19.8 |  |  |  | 24.4 |
Equity in earnings of ARO | — |  |  | — |  |  | — |  |  | — |  |  | 3.3 |  |  |  | 3.3 |
Operating income | $ | 27.2 |  |  | $ | 11.9 |  |  | $ | 13.1 |  |  | $ | 24.0 |  |  | $ | (67.7) |  |  |  | $ | 8.5 |
Property and equipment, net | $ | 515.7 |  |  | $ | 404.1 |  |  | $ | 788.6 |  |  | $ | 55.6 |  |  | $ | (748.5) |  |  |  | $ | 1,015.5 |
Information about Geographic Areas As of March 31, 2024, the geographic distribution of our and ARO's drilling rigs was as follows:
| Floaters |  | Jackups |  | Other |  | Total Valaris |  | ARO
Middle East & Africa | 3 |  |  | 4 |  |  | 9 |  |  | 16 |  |  | 8 |
Europe | 4 |  |  | 12 |  |  | — |  |  | 16 |  |  | — |
North & South America | 9 |  |  | 7 |  |  | — |  |  | 16 |  |  | — |
Asia & Pacific Rim | 2 |  |  | 3 |  |  | — |  |  | 5 |  |  | — |
Total | 18 |  |  | 26 |  |  | 9 |  |  | 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 the second quarter of 2024. This rig is not included in the table above.

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