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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information SEGMENT INFORMATION
Our business consists of four operating segments, which have been determined based on the asset type and specifications and services we provide. These operating segments are: Floaters, Jackups, ARO and Other. These operating segments are Floaters, Jackups, ARO and Other. The Floaters segment consists of our drillships and semisubmersible rigs, which can generally drill in water depths up to 12,000 feet and 8,500, respectively. Floaters are generally considered to be more advanced, typically earn higher day rates and require a larger crew compliment to operate. The Jackups segment consists of our jackup rigs, which generally operate in water depths of 400 feet or less. As Jackups have a simpler design and operate in shallow waters, they typically earn lower day rates and require a smaller crew to operate. The ARO segment consists of the full operations of ARO, which operates jackup drilling rigs in Saudi Arabia for Saudi Aramco. The Other segment consists of management services on rigs owned by third parties and the activities associated with our arrangements with ARO under the Lease Agreements.
Each of the reporting segments earn revenues through drilling contracts, in which we provide a drilling rig and/or drilling services, inclusive of rig crews, on a day rate basis. Floaters, Jackups and ARO are also reportable segments.

Our chief operating decision maker (“CODM”) is the executive management committee, which is comprised of the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Commercial Officer, General Counsel & Secretary, Chief Human Resources Officer, Vice President – Strategy and Sustainability and Vice President – Operational Integrity. The CODM assesses segment performance based on their review of the operating income (loss) of each segment, which measures profitability after deducting normal operating costs. Components within operating income (loss), such as revenues and contract drilling expense, are used to monitor actual performance against budget and monthly forecasted results for each segment. Further, the CODM utilizes revenue to derive a segment’s asset utilization, average daily revenue and revenue efficiency. Using these metrics, the CODM can identify potentially underperforming segments and develop strategies to increase profits or reduce costs, make investment decisions and allocate resources as needed. The disaggregated segment information, as presented in the tables below, aligns with the segment level information that is regularly provided to the CODM.

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.

During the fourth quarter of 2024, we adopted Update 2023-07 (see "Note 1 Description of the Business and Summary of Significant Accounting Policies" for further discussion on Update 2023-07). In connection with this, we have updated our segment disclosure presentation for the year ended December 31, 2024, to break out Reimbursable revenues and Reimbursable expenses from Revenues and Contract drilling expense, respectively, and have retrospectively applied the changes to the periods ended December 31, 2023 and 2022.
Segment information for the years ended December 31, 2024, 2023 and 2022 are presented below (in millions).

Year Ended December 31, 2024
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Operating revenues:
Revenues (exclusive of reimbursable revenues)
$1,382.8 $686.5 $512.5 $142.6 $(512.5)$2,211.9 
Reimbursable revenues57.9 68.4 — 24.4 — 150.7 
Total operating revenues
1,440.7 754.9 512.5 167.0 (512.5)2,362.6 
Operating expenses:
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)
930.3 477.1 367.7 63.6 (220.2)1,618.5 
Reimbursable expenses
54.9 64.3 — 23.2 — 142.4 
Total contract drilling (exclusive of depreciation)
985.2 541.4 367.7 86.8 (220.2)1,760.9 
Loss on impairment — — 28.4 — (28.4)— 
Depreciation58.1 45.0 89.2 9.5 (79.7)122.1 
General and administrative— — 23.7 — 92.6 116.3 
Equity in losses of ARO— — — — (11.0)(11.0)
Operating income$397.4 $168.5 $3.5 $70.7 $(287.8)$352.3 
Property and equipment, net$1,174.2 $575.3 $1,253.1 $132.8 $(1,202.5)$1,932.9 
Capital expenditures$239.7 $213.1 $285.0 $— $(282.7)$455.1 

Year Ended December 31, 2023
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Operating revenues:
Revenues (exclusive of reimbursable revenues)
$902.8 $620.6 $496.6 $152.6 $(496.6)$1,676.0 
Reimbursable revenues45.9 39.0 — 23.3 — 108.2 
Total operating revenues
948.7 659.6 496.6 175.9 (496.6)1,784.2 
Operating expenses:
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)768.4 480.4 365.9 52.6 (226.9)1,440.4 
Reimbursable expenses43.6 37.0 — 22.6 — 103.2 
Total contract drilling (exclusive of depreciation)812.0 517.4 365.9 75.2 (226.9)1,543.6 
Depreciation55.8 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
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Operating revenues:
Revenues (exclusive of reimbursable revenues)
$649.3 $713.4 $459.5 $134.6 $(459.5)$1,497.3 
Reimbursable revenues51.2 30.8 — 23.2 — 105.2 
Total operating revenues
700.5 744.2 459.5 157.8 (459.5)1,602.5 
Operating expenses:
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)598.3 509.4 341.8 54.1 (219.9)1,283.7 
Reimbursable expenses47.7 29.5 — 22.3 — 99.5 
Total contract drilling (exclusive of depreciation)646.0 538.9 341.8 76.4 (219.9)1,383.2 
Loss on impairment 34.5 — — — — 34.5 
Depreciation50.0 36.1 63.4 4.6 (62.9)91.2 
General and administrative— — 18.7 — 62.2 80.9 
Equity in earnings of ARO— — — — 24.5 24.5 
Operating income (loss)$(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 
 
Information about Geographic Areas
 
As of December 31, 2024, 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 28 jackup rigs which were deployed in various locations and our Other segment consisted of seven jackup rigs which are leased to our 50/50 unconsolidated joint venture with Saudi Aramco. As of December 31, 2024, the geographic distribution of our and ARO's drilling rigs was as follows:

As of December 31, 2024, the geographic distribution of our and ARO's drilling rigs was as follows:
FloatersJackupsOtherTotal ValarisARO
Middle East & Africa367169
North & South America 97—16—
Europe
411—15—
Asia & Pacific Rim24—6—
Total18287539

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 ordered one newbuild jackup, Kingdom 3, during the fourth quarter of 2024, which is under construction in the Middle East and 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,
20242023
Spain$484.8 $438.9 
Brazil413.9 374.5 
United States314.3 206.5 
United Kingdom290.4 277.8 
Other countries(1)
514.0 410.7 
Total$2,017.4 $1,708.4 

(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.