Leases Leases

12 Months Ended

Dec. 31, 2024

LEASES

We have operating leases for office space, facilities, equipment, employee housing and certain rig berthing facilities. For all asset classes, except office space, we account for the lease component and the non-lease component as a single lease component. Short-term leases with a term of one year or less are not recorded in the Consolidated Balance Sheet. Our leases have remaining lease terms of less than one month to seven years, some of which include options to extend. The lease term used for calculating our right-of-use assets and lease liabilities is determined by considering the non-cancelable lease term, as well as any extension options that we are reasonably certain to exercise. Our right-of-use assets, current lease liabilities, and long-term lease liabilities are included within Other assets, Accrued liabilities and other, and Other liabilities, respectively, in the Consolidated Balance Sheets.

We evaluate the carrying value of our right-of-use assets on a periodic basis to identify events or changes in circumstances, such as lease abandonment, which indicate that the carrying value of such right-of-use assets may be impaired.

The components of lease expense are as follows (in millions):


	Years Ended December 31,
	2024		2023		2022
Long-term operating lease cost	$	35.4	$	24.6	$	13.4
Short-term operating lease cost	17.6		13.2		15.2
Variable lease cost (1)	9.8		11.3		1.0
Total operating lease cost	$	62.8	$	49.1	$	29.6

(1)Variable lease costs are excluded from the measurement of right-of-use assets and lease liabilities and consist primarily of variable fees related to offshore equipment rentals.

Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):


	December 31,
	2024			2023
Operating lease right-of-use assets	$	84.5		$	74.6

Current lease liability	$	28.0		$	27.2
Long-term lease liability	56.9			48.9
Total operating lease liabilities	$	84.9		$	76.1

Weighted-average remaining lease term (in years)	3.2			3.6

Weighted-average discount rate (1)	7.75		%	8.21		%

(1)Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases.

Supplemental cash flow information related to our operating leases is as follows (in millions):


	Years Ended December 31,
	2024		2023		2022
ROU assets obtained in exchange for operating lease liabilities	$	39.4	$	80.3	$	14.7

Cash paid for amounts included in the measurement of our operating lease liabilities	$	34.9	$	26.2	$	14.0

Maturities of lease liabilities as of December 31, 2024 were as follows (in millions):



2025	$	32.7
2026	31.3
2027	20.9
2028	5.4
2029	3.1
Thereafter	3.0
Total lease payments	$	96.4
Less imputed interest	(11.5)
Total	$	84.9