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Investment in associated companies (Tables) | 12 Months Ended
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Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract] |
Schedule of ownership percentages and book values in associated companies | The cash flows were estimated over the remaining useful economic lives of the underlying assets but no longer than 30 years in total, and discounted using an estimated market participant WACC as follows:
Investment | WACC
Seadrill Capricorn Holdings LLC | 11.4 | %
Seadrill Operating LP | 12.0 | %
Seadrill Deepwater Drillship Ltd | 12.0 | %
Seabras Sapura Holding | 14.3 | %
Seabras Sapura Participacoes | 13.7 | %
SeaMex | 12.7 | %
We have the following investments in associated companies:
Ownership percentage | Joint venture partner |  | December 31, 2020 |  | December 31, 2019 |
Seadrill Partners and Seadrill Partner subsidiaries ("SDLP investments") (a) (b) | (a) |  | (a) |  | (a) |
Seabras Sapura (b) | Sapura Energy |  | 50.0 | % |  | 50.0 | % |
SeaMex Ltd. ("SeaMex") (b) | Fintech |  | 50.0 | % |  | 50.0 | % |
Sonadrill (b) | Sonangol E.P. |  | 50.0 | % |  | 50.0 | % |
Gulfdrill (b) | Gulf Drilling International |  | 50.0 | % |  | 50.0 | % |
(a) Refer to the Seadrill Partners subsidiaries paragraph below for additional information. For transactions with related parties refer to Note 32 - "Related party transactions". (b) We own 50% equity interests in the above entities. The remaining 50% equity interest is owned by the above joint venture partners. We account for our 50% investments in the joint ventures under the equity method. For transactions with related parties refer to Note 32 - "Related party transactions". At the year end, the book values of our investments in our associated companies were as follows:
(In $ millions) | December 31, 2020 |  | December 31, 2019
Seadrill Partners - Direct ownership interest | — |  |  | 122 |
Seabras Sapura | 103 |  |  | 98 |
Seabras Sapura Holding GmbH - shareholder loans held as equity | 121 |  |  | 123 |
SeaMex Ltd | — |  |  | 22 |
Sonadrill | 22 |  |  | 24 |
Gulfdrill | 2 |  |  | — |
Total | 248 |  |  | 389 |
Share in results from associated companies | We have recognized the following impairment of our investments in associated companies in the Consolidated Statements of Operations within "Loss on impairment of investments".
| Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Impairments of Investment in associated companies and joint ventures |  |  |  |  |  |  |  |
Seadrill Partners - Direct ownership investments | 47 |  |  | 248 |  |  | — |  |  |  | — |
Seadrill Partners - Seadrill member interest and IDRs | — |  |  | 54 |  |  | — |  |  |  | — |
Total impairment of investments in associated companies and joint ventures | 47 |  |  | 302 |  |  | — |  |  |  | — |
Our share in results of our associated companies (net of tax) were as follows:
| Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Seadrill Partners - Direct ownership interests | (75) |  |  | (107) |  |  | (82) |  |  |  | 77 |
Seadrill Partners - Subordinated units | — |  |  | (17) |  |  | (20) |  |  |  | 22 |
Seabras Sapura | 20 |  |  | 29 |  |  | 24 |  |  |  | 46 |
SeaMex | (22) |  |  | (19) |  |  | (12) |  |  |  | 4 |
Sonadrill | (2) |  |  | (1) |  |  | — |  |  |  | — |
Gulfdrill | 2 |  |  | — |  |  | — |  |  |  | — |
Total share in results from associated companies (net of tax) | (77) |  |  | (115) |  |  | (90) |  |  |  | 149 |
Summary of Consolidated Statements of Operations for our equity method investees | The results of the Direct ownership interests in Seadrill Partners and its subsidiaries and our share in those results (net of tax) were as follows:
Seadrill Partners |  | Successor |  |  | Predecessor
(In $ millions) |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Operating revenues (1) |  | 750 |  |  | 426 |  |  |  | 612 |
Net operating (loss)/income (1) |  | 51 |  |  | 100 |  |  |  | 257 |
Net (loss)/income (1) |  | (187) |  |  | (127) |  |  |  | 201 |
Net (loss)/income allocated to subsidiaries of Seadrill Partners (1) |  | (92) |  |  | (59) |  |  |  | 77 |
Losses not recognized |  | — |  |  | — |  |  |  | — |
Amortization of basis differences |  | (15) |  |  | (23) |  |  |  | — |
Share in results of Seadrill Partners (net of tax) |  | (107) |  |  | (82) |  |  |  | 77 |
Net (loss)/income allocated to SDLP subordinated units |  | (17) |  |  | (15) |  |  |  | 22 |
Amortization of basis differences |  | — |  |  | (5) |  |  |  | — |
Share in results of the subordinated units of Seadrill Partners (net of tax) |  | (17) |  |  | (20) |  |  |  | 22 |
(1) The 'Summary of Consolidated Statements of Operations' has not been included for Seadrill Partners for the period ending December 1, 2020. Seadrill Partners on the date of issuance of these consolidated financial statements have yet to issue consolidated statements for the year ending December 31, 2020 that comply with U.S. GAAP and would be impractical to obtain the results for the year ended December 31, 2020. Furthermore, our associated investment was substantially written down through impairment in the year ending December 31, 2019 and was fully impaired to nil carrying value in the first quarter of 2020 and thus our share in results of Seadrill Partners did not incorporate results for the period from April 1, 2020 to December 1, 2020. The share in results of a loss of $75 million represents Seadrill's share for the period before the investment was reduced to nil. The results of the Seabras Sapura companies and our share in those results (net of tax) were as follows:
Seabras Sapura | Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Operating revenues | 360 |  |  | 434 |  |  | 232 |  |  |  | 241 |
Net operating income | 103 |  |  | 198 |  |  | 124 |  |  |  | 125 |
Net income | 75 |  |  | 113 |  |  | 88 |  |  |  | 92 |
Seadrill ownership percentage | 50 | % |  | 50 | % |  | 50 | % |  |  | 50 | %
Share of net income | 38 |  |  | 57 |  |  | 44 |  |  |  | 46 |
Amortization of basis differences | (18) |  |  | (28) |  |  | (20) |  |  |  | — |
Share in results from Seabras Sapura (net of tax) | 20 |  |  | 29 |  |  | 24 |  |  |  | 46 |
The results of the SeaMex companies and our share in those results (net of tax) were as follows:
SeaMex | Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Operating revenues | 234 |  |  | 232 |  |  | 118 |  |  |  | 121 |
Net operating income | 49 |  |  | 70 |  |  | 40 |  |  |  | 40 |
Net (loss)/income | (13) |  |  | 18 |  |  | 4 |  |  |  | 7 |
Seadrill ownership percentage | 50 | % |  | 50 | % |  | 50 | % |  |  | 50 | %
Share of net (loss) / income | (6) |  |  | 9 |  |  | 2 |  |  |  | 4 |
Amortization of basis differences | (16) |  |  | (28) |  |  | (14) |  |  |  | — |
Share in results from SeaMex (net of tax) | (22) |  |  | (19) |  |  | (12) |  |  |  | 4 |
The results of the Sonadrill companies and our share in those results (net of tax) were as follows:
Sonadrill | Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Operating revenues | 56 |  |  | 22 |  |  | — |  |  |  | — |
Net operating income | (2) |  |  | (1) |  |  | — |  |  |  | — |
Net income | (5) |  |  | (2) |  |  | — |  |  |  | — |
Seadrill ownership percentage | 50 | % |  | 50 | % |  | — | % |  |  | — | %
Share of net income | (2) |  |  | (1) |  |  | — |  |  |  | — |
Share in results from Sonadrill (net of tax) | (2) |  |  | (1) |  |  | — |  |  |  | — |
The results of the Gulfdrill companies and our share in those results (net of tax) were as follows:
Gulfdrill | Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Operating revenues | 44 |  |  | — |  |  | — |  |  |  | — |
Net operating income | 6 |  |  | — |  |  | — |  |  |  | — |
Net income | 4 |  |  | — |  |  | — |  |  |  | — |
Seadrill ownership percentage | 50 | % |  | 50 | % |  | — | % |  |  | — | %
Share of net income | 2 |  |  | — |  |  | — |  |  |  | — |
Share in results from Gulfdrill (net of tax) | 2 |  |  | — |  |  | — |  |  |  | — |
Summarized Consolidated Balance sheets for our equity method investees | The summarized balance sheets of the directly owned subsidiaries of Seadrill Partners and our share of equity in those companies was as follows:
Seadrill Partners |  |
(In $ millions) |  | December 31, 2019
Current assets |  | 833 |
Non-current assets |  | 4,847 |
Current liabilities |  | (533) |
Non-current liabilities |  | (2,623) |
Net Assets (2) |  | 2,524 |
Seadrill share of book equity |  | 1,305 |
Basis difference allocated to rigs (1) |  | (1,220) |
Basis difference allocated to contracts (1) |  | 37 |
Book equity allocated to direct investments in subsidiaries of Seadrill Partners |  | 122 |
(1)In 2020, an impairment of $47 million (December 31, 2019: $302 million) was recognized against the Seadrill Partners direct ownership interests and IDRs in the Consolidated Statements of Operations within "Loss on impairment of investments" reducing the balance of our investment in Seadrill Partners to nil. See Note 13 – "Impairment loss on investments in associated companies". (2)The 'Summary Consolidated Balance sheet' has not been included for Seadrill Partners as at December 1, 2020. Seadrill Partners on the date of issuance of these consolidated financial statements have yet to issue consolidated statements for the year ending December 31, 2020 that comply with U.S. GAAP and would be impractical to obtain the results for the year ended December 31, 2020. Furthermore, our associated investment was substantially written down through impairment in the year ending December 31, 2019 and was fully impaired to nil carrying value in the first quarter of 2020. The summarized balance sheets of the Seabras Sapura companies and our share of recorded equity in those companies was as follows:
Seabras Sapura |  |  |
(In $ millions, unless otherwise stated) | December 31, 2020 |  | December 31, 2019
Current assets | 207 |  |  | 195 |
Non-current assets | 1,474 |  |  | 1,495 |
Current liabilities | (541) |  |  | (510) |
Non-current liabilities | (419) |  |  | (504) |
Net Assets | 721 |  |  | 676 |
Seadrill ownership percentage | 50 | % |  | 50 | %
Seadrill share of book equity | 361 |  |  | 338 |
Shareholder loans held as equity (1) | 121 |  |  | 123 |
Basis difference allocated to rigs | (351) |  |  | (369) |
Basis difference allocated to contracts | 93 |  |  | 129 |
Total adjustments | (137) |  |  | (117) |
Book value of Seadrill investment | 224 |  |  | 221 |
(1) In 2020, Seabras Sapura repaid $2 million (December 31, 2019: $9 million) of shareholder loans, with the cash proceeds held in escrow against a future redemption of Senior Secured Notes. The summarized balance sheets of the SeaMex companies and our share of recorded equity in those companies was as follows:
SeaMex |  |  |
(In $ millions) | December 31, 2020 |  | December 31, 2019
Current assets | 291 |  |  | 260 |
Non-current assets | 898 |  |  | 939 |
Current liabilities | (174) |  |  | (141) |
Non-current liabilities | (555) |  |  | (586) |
Net Assets | 460 |  |  | 472 |
Seadrill ownership percentage | 50 | % |  | 50 | %
Seadrill share of book equity | 230 |  |  | 236 |
Basis difference allocated to rigs | (325) |  |  | (341) |
Basis difference allocated to contracts | 95 |  |  | 127 |
Total adjustments | (230) |  |  | (214) |
Book value of Seadrill investment | — |  |  | 22 |
The summarized balance sheets of the Sonadrill companies and our share of recorded equity in those companies was as follows:
Sonadrill |  |  |
(In $ millions) | December 31, 2020 |  | December 31, 2019
Current assets | 54 |  |  | 57 |
Non-current assets | — |  |  | — |
Current liabilities | (11) |  |  | (9) |
Non-current liabilities | — |  |  | — |
Net Assets | 43 |  |  | 48 |
Seadrill ownership percentage | 50 | % |  | 50 | %
Seadrill share of book equity | 22 |  |  | 24 |
Book value of Seadrill investment | 22 |  |  | 24 |
The summarized balance sheets of the Gulfdrill companies and our share of recorded equity in those companies was as follows:
Gulfdrill |  |  |
(In $ millions) | December 31, 2020 |  | December 31, 2019
Current assets | 67 |  |  | — |
Non-current assets | 102 |  |  | — |
Current liabilities | (135) |  |  | — |
Non-current liabilities | (31) |  |  | — |
Net Assets | 3 |  |  | — |
Seadrill ownership percentage | 50 | % |  | 50 | %
Seadrill share of book equity | 2 |  |  | — |
Book value of Seadrill investment | 2 |  |  | — |

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