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Risk management and financial instruments (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Fair Value Disclosures [Abstract]

Schedule of interest rate risk

We have set out our exposure to interest rate risk at June 30, 2021 in the table below(1):

(In $ millions)

As at June 30, 2021

Impact of 1% increase in rates

Cash and Restricted Cash

644

6

(1) Debt instruments have been excluded above as:

- We have not paid any interest on the $5,662 million of senior credit facilities since filing for Chapter 11;

- The $546 million of senior secured notes are a fixed rate debt instrument.

Schedule of realized and unrealized gains and losses

Gains and losses on derivatives reported in our Consolidated Statement of Operations included the following:

Gain/(loss) recognized in the Consolidated Statement of Operations relating to derivative financial instruments																		Six months ended June 30, 2021						Six months ended June 30, 2020
Interest rate cap agreement																		—						(2)
Embedded conversion option on Archer convertible debt instrument																		5						3
Gain on derivative financial instruments																		5						1

Schedule of derivative financial instruments

Derivative financial instruments included in our Consolidated Balance Sheet, within "Other Assets" included the following:

(In $ millions)

Maturity date

Applicable rate

Outstanding principal - June 30, 2021

As at June 30, 2021

As at December 31, 2020

Interest rate cap

June 2023

2.87% LIBOR cap

3,500

—

—

Schedule of fair value of financial instruments measured at amortized cost

The carrying value and estimated fair value of our financial instruments that are measured at amortized cost at June 30, 2021 and December 31, 2020 are as follows:

						As at June 30, 2021												As at December 31, 2020
(In $ millions)						Fair value						Carrying value						Fair value						Carrying value
Assets
Related party loans receivable (1) (Level 2)						391						391						379						379
Liabilities
Secured credit facilities (Level 3)						1,213						5,662						1,193						5,662
Senior Secured Notes (Level 1)						306						546						213						515
Related party loans payable (Level 3)						370						635						424						426

(1)         Excludes Archer convertible debt receivable, which is measured at fair value on a recurring basis.  Related party loans receivable is $198 million, comprised of principal due of $540 million offset by allowance for expected credit losses recognized of $342 million. For further information on the impact of the expected credit losses to our financial assets please refer to Note 4 - "Current expected credit losses".

Schedule of financial instruments measured at fair value on a recurring basis

The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 are as follows:

						As at June 30, 2021												As at December 31, 2020
(In $ millions)						Fair value						Carrying value						Fair value						Carrying value
Assets
Cash and cash equivalents (Level 1)						428						428						526						526
Restricted cash (Level 1)						216						216						197						197
Marketable securities (Level 1)						13						13						8						8
Related party loans receivable - Archer convertible debt (Level 3)						19						19						13						13

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Derivative Instruments and Fair Value Disclosures [Abstract]

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments.

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