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Segment Information
 3 Months Ended
Mar. 31, 2025
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 chief operating decision maker ("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 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, 2025 and 2024, respectively, are presented below (in millions):
Three Months Ended March 31, 2025
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Operating revenues:
Revenues (exclusive of reimbursable revenues)
$356.0 $185.9 $134.7 $35.9 $(134.7)$577.8 
Reimbursable revenues8.9 27.7 — 6.3 — 42.9 
Total operating revenues364.9 213.6 134.7 42.2 (134.7)620.7 
Operating expenses:
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)
204.0 116.7 85.6 16.0 (48.3)374.0 
Reimbursable expenses8.3 26.4 — 6.3 — 41.0 
Total contract drilling (exclusive of depreciation)
212.3 143.1 85.6 22.3 (48.3)415.0 
Loss on impairment7.8 — — — — 7.8 
Depreciation14.2 12.7 29.5 2.8 (26.1)33.1 
General and administrative— — 6.3 — 18.1 24.4 
Equity in earnings of ARO— — — — 2.6 2.6 
Operating income$130.6 $57.8 $13.3 $17.1 $(75.8)$143.0 
Property and equipment, net$1,162.3 $625.5 $1,227.8 $131.6 $(1,170.1)$1,977.1 
Capital expenditures
$27.0 $70.2 $8.0 $— $(5.0)$100.2 

Three Months Ended March 31, 2024
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Operating revenues:
Revenues (exclusive of reimbursable revenues) (1)
$309.8 $139.3 $138.3 $42.1 $(138.3)$491.2 
Reimbursable revenues (1)
14.6 13.0 — 6.2 — 33.8 
Total operating revenues (1)
324.4 152.3 138.3 48.3 (138.3)525.0 
Operating expenses:
Contract drilling expenses (exclusive of depreciation and reimbursable expenses) (1)
239.6 121.6 98.3 16.0 (63.0)412.5 
Reimbursable expenses (1)
13.8 12.3 — 6.2 — 32.3 
Total contract drilling (exclusive of depreciation) (1)
253.4 133.9 98.3 22.2 (63.0)444.8 
Depreciation13.2 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 
Capital expenditures
$94.8 $56.3 $29.7 $— $(29.5)$151.3 
(1)We have adopted ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures beginning with the 2024 Annual Report. In connection with this, we updated our segment disclosure presentation for the three months ended March 31, 2024, to break out Reimbursable revenues and Reimbursable expenses from Revenues and Contract drilling expense, respectively. The disaggregation of these line items is presentational only and there were no impacts to the overall Total operating revenues or Total contract drilling expense (exclusive of depreciation) line items.
Information about Geographic Areas

As of March 31, 2025, the geographic distribution of our and ARO's drilling rigs was as follows:
FloatersJackupsOtherTotal ValarisARO
Europe
6 11 — 17 — 
Middle East & Africa1 7 7 15 9 
North & South America
6 5 — 11 — 
Asia & Pacific Rim2 4 — 6 — 
Held for sale (1)
3 — — 3 — 
Total18 27 7 52 9 
(1)Represents the Retired Semis, which were classified as held for sale as of March 31, 2025. See "Note 5 - Property and Equipment" for more information regarding the Retired Semis.

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, which is under construction in the Middle East and is not included in the table above.