Chapter 11 Proceedings (Tables)

6 Months Ended

Jun. 30, 2021

Liabilities subject to compromise, as presented on the Consolidated Balance Sheet as at June 30, 2021, include the following:


(In $ millions)			As at June 30, 2021
Senior under-secured external debt			5,662
Accounts payable and other liabilities			75
Accrued interest on external debt			34
Amount due to related party			645
Liabilities subject to compromise in combined filers			6,416
Less: Elimination of positions held with non-filers within the Seadrill Consolidated Group			(10)
Liabilities subject to compromise in consolidated group			6,406

The following table summarizes the reorganization items recognized in the six months ended June 30, 2021:


(In $ millions)			Six months ended June 30, 2021
Advisory and professional fees after filing			(52)
Remeasurement of terminated lease to allowable claim			(186)
Gain on write-off of related party balances			8
Total reorganization items			(230)

Debtors' unaudited combined Statement of Operations for the six months ended June 30, 2021


(In $ millions)															Six months ended June 30, 2021
Operating revenues
Contract revenues															335
Reimbursable revenues															17
Management contract revenues															88
Other revenues															12
Total operating revenues															452

Operating expenses
Vessel and rig operating expenses															(316)
Reimbursable expenses															(16)
Management contract expense															(118)
Depreciation															(83)
General and administrative expenses															(36)
Total operating expenses															(569)

Other operating items
Loss on impairment of long-lived assets															(152)

Gain on sale of assets															11
Other operating income															3
Total other operating items															(138)

Operating loss															(255)

Financial and other non-operating items
Interest income															1
Total Interest expenses															(79)
Share in results of joint ventures															1
Foreign currency exchange gain															9
Other financial items															(13)
Reorganization items															(230)
Total financial and other non-operating items, net															(311)
Loss before income taxes															(566)
Income tax expense															(9)
Net loss															(575)

Debtors' unaudited combined Balance Sheet as at June 30, 2021


(In $ millions)			As at June 30, 2021
ASSETS
Current assets
Cash and cash equivalents			414
Restricted cash			78
Accounts receivable, net			122
Amounts due from related parties, net			81
Other current assets			185
Total current assets			880
Non-current assets
Investment in associated companies and joint ventures			25
Drilling units			1,927
Shares in subsidiaries			409
Restricted cash			69
Deferred tax assets			8
Equipment			16
Amount due from related party, net			3
Other non-current assets			32
Total non-current assets			2,489
Total assets			3,369
LIABILITIES AND EQUITY
Current liabilities

Trade accounts payable			(56)


Short-term debt due to related party			(1)
Other current liabilities			(239)
Total current liabilities			(296)

Liabilities subject to compromise			(6,416)
Non-current liabilities



Deferred tax liability			(8)
Other non-current liabilities			(105)
Total non-current liabilities			(113)


Equity





Total equity			3,456


Total liabilities and equity			(3,369)

Debtors' unaudited Statement of Cash Flows for the six months ended June 30, 2021


(In $ millions)			Six months ended June 30, 2021
Cash Flows from Operating Activities
Net loss			(575)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			83

Gain on sale of assets			(11)

Share in results from joint ventures (net of tax)			(1)
Loss on impairment of long-lived assets			152
Deferred tax benefit			(1)





Non-cash reorganization items			178

Unrealized foreign exchange gain			(4)
Change in allowance for credit losses			54

Other cash movements in operating activities
Payments for long-term maintenance			(26)
Repayments made under lease arrangements			(12)
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
Trade accounts receivable			3
Trade accounts payable			14
Related party receivables			—
Related party payables			28
Other assets			11
Other liabilities			45
Net cash flows used in operating activities			(62)


Cash Flows from Investing Activities
Additions to drilling units and equipment			(13)
Proceeds from disposal of drilling unit			7
Net cash flows used in investing activities			(6)


Cash Flows from Financing Activities













Net cash used in financing activities			—
Effect of exchange rate changes on cash			4
Net decrease in cash and cash equivalents, including restricted cash			(64)
Cash and cash equivalents, including restricted cash, at beginning of the period			625
Cash and cash equivalents, including restricted cash, at the end of period			561