VALARIS LTD, 10-Q filed on 5/2/2023
Quarterly Report
v3.23.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2023
Apr. 27, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 1-8097  
Entity Registrant Name Valaris Limited  
Entity Incorporation, State or Country Code D0  
Entity Tax Identification Number 98-1589854  
Entity Address, Address Line One Clarendon House, 2 Church Street  
Entity Address, City or Town Hamilton  
Entity Address, State or Province BM  
Entity Address, Postal Zip Code HM 11  
City Area Code 44 (0) 20  
Local Phone Number 7659 4660  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000314808  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Shares, Shares Outstanding   75,181,200
Entity Bankruptcy Proceedings, Reporting Current true  
Common Class A [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common Shares, $0.01 par value share  
Trading Symbol VAL  
Security Exchange Name NYSE  
Warrants    
Document Information [Line Items]    
Title of 12(b) Security Warrants to purchase Common Shares  
Trading Symbol VAL WS  
Security Exchange Name NYSE  
v3.23.1
Condensed Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]    
OPERATING REVENUES $ 430.1 $ 318.4
OPERATING EXPENSES    
Contract drilling (exclusive of depreciation) 377.2 331.3
Depreciation expense 23.3 22.5
General and administrative 24.4 18.8
Total operating expenses 424.9 372.6
Income (Loss) from Equity Method Investments (3.3) (4.3)
OPERATING INCOME (LOSS) 8.5 (49.9)
OTHER INCOME (EXPENSE)    
Interest income 23.0 10.9
Interest expense, net (11.1) (11.5)
Other, net 0.6 10.0
OTHER INCOME (EXPENSE), NET 12.5 9.4
INCOME (LOSS) BEFORE INCOME TAXES 21.0 (40.5)
Income Tax Expense (Benefit), Continuing Operations [Abstract]    
Current income tax benefit (32.2) (0.1)
Deferred income tax expense (benefit) 4.6 (0.6)
Total provision for income taxes (27.6) (0.7)
Net income (loss) 48.6 (39.8)
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1.9) 1.2
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 46.7 $ (38.6)
EARNINGS (LOSS) PER SHARE    
Basic (in dollars per share) $ 0.62 $ (0.51)
Diluted (in dollars per share) $ 0.61 $ (0.51)
WEIGHTED-AVERAGE SHARES OUTSTANDING    
Basic (in shares) 75.2 75.0
Diluted (in shares) 76.4 75.0
v3.23.1
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]    
NET INCOME (LOSS) $ 48.6 $ (39.8)
OTHER COMPREHENSIVE LOSS, NET    
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit (0.1) 0.0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax (0.1) (0.3)
NET OTHER COMPREHENSIVE LOSS (0.2) (0.3)
COMPREHENSIVE INCOME (LOSS) 48.4 (40.1)
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1.9) 1.2
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 46.5 $ (38.9)
v3.23.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
CURRENT ASSETS    
    Cash and cash equivalents $ 822.5 $ 724.1
Restricted Cash 21.5 24.4
    Accounts receivable, net 393.4 449.1
    Other current assets 158.1 148.6
Total current assets 1,395.5 1,346.2
PROPERTY AND EQUIPMENT, AT COST 1,196.1 1,134.5
    Less accumulated depreciation 180.6 157.3
Property, Plant and Equipment, Net, Total 1,015.5 977.2
LONG-TERM NOTES RECEIVABLE FROM ARO 261.0 254.0
INVESTMENT IN ARO 114.4 111.1
OTHER ASSETS 164.8 171.8
Total assets 2,951.2 2,860.3
CURRENT LIABILITIES    
Accounts payable - trade 324.1 256.5
Accrued liabilities and other 267.7 247.9
Total current liabilities 591.8 504.4
LONG-TERM DEBT 542.8 542.4
OTHER LIABILITIES 464.6 515.6
Total liabilities 1,599.2 1,562.4
Commitments and Contingencies
VALARIS SHAREHOLDERS' EQUITY    
Common Stock, Value, Outstanding 0.8 0.8
Preferred Stock, Value, Outstanding 0.0 0.0
Stock warrants 16.4 16.4
Additional paid-in capital 1,103.6 1,097.9
Retained earnings 206.8 160.1
Accumulated other comprehensive income 14.5 14.7
Total Valaris shareholders' equity 1,342.1 1,289.9
NONCONTROLLING INTERESTS 9.9 8.0
Total equity 1,352.0 1,297.9
Total liabilities and shareholders' equity $ 2,951.2 $ 2,860.3
v3.23.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common stock, par value per share (in dollars per share or pounds sterling per share) $ 0.01 $ 0.01
Common shares, shares authorized (in shares) 700,000,000.0 700,000,000.0
Common shares, shares issued (in shares) 75,200,000  
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 150,000,000.0 150,000,000.0
Preferred Stock, Value, Issued 0 0
v3.23.1
Condensed Consolidated Statements Of Cash Flows - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
OPERATING ACTIVITIES    
Net income (loss) $ 48,600,000 $ (39,800,000)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation expense 23,300,000 22,500,000
Accretion of discount on the Notes Receivable from ARO (7,000,000.0) (7,700,000)
Share-based compensation expense 5,700,000 3,400,000
Deferred Income Tax Expense (Benefit) 4,600,000 (600,000)
Amortization, Net (4,200,000) 1,600,000
Income (Loss) from Equity Method Investments (3,300,000) (4,300,000)
Net periodic pension and retiree medical income (100,000) (4,000,000.0)
Gain on asset disposals (100,000) (2,500,000)
Other 100,000 500,000
Changes in operating assets and liabilities 85,100,000 32,500,000
Contributions to pension plans and other post-retirement benefits 1,000,000.0 800,000
Net cash provided by operating activities 151,700,000 800,000
INVESTING ACTIVITIES    
Additions to property and equipment (56,300,000) (38,500,000)
Net proceeds from disposition of assets 100,000 1,300,000
Net cash used in investing activities (56,200,000) (37,200,000)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 95,500,000 (36,400,000)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 748,500,000 644,600,000
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 844,000,000.0 $ 608,200,000
v3.23.1
Unaudited Condensed Consolidated Financial Statements
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Financial Statements
 
We prepared the accompanying condensed consolidated financial statements of Valaris Limited and its subsidiaries (the "Company," "Valaris," "our," "we" or "us") in accordance with accounting principles generally accepted in the United States of America ("GAAP"), pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") included in the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial information included in this report is unaudited but, in our opinion, includes all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The December 31, 2022 Condensed Consolidated Balance Sheet data was derived from our 2022 audited consolidated financial statements but does not include all disclosures required by GAAP. The preparation of our condensed consolidated financial statements requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and disclosures of gain and loss contingencies as of the date of the financial statements. Actual results could differ from those estimates.

Results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2023, or for any future period. We recommend these condensed consolidated financial statements be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 21, 2023 (our "Annual Report").

Summary of Significant Accounting Policies

Please refer to "Note 1. Description of the Business and Summary of Significant Accounting Policies" of our Consolidated Financial Statements from our Annual Report for the discussion of our significant accounting policies.

New Accounting Pronouncements

Recently adopted accounting pronouncements

Business Combinations - In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“Update 2021-08”). ASU No. 2021-08 requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 and provides practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments also apply to contract assets and contract liabilities from other contracts to which the provisions of Topic 606 apply, such as contract liabilities for the sale of nonfinancial assets within the scope of Subtopic 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. The FASB issued the update to improve the accounting for acquired revenue contracts with customers in a business combination. Update 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We adopted Update 2021-08 effective January 1, 2023 with no material impact to our condensed consolidated financial statements upon adoption.
Accounting pronouncements to be adopted

Reference Rate Reform - In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("Update 2020-04"), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in Update 2020-04 apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients and that are retained through the end of the hedging relationship. The provisions in Update 2020-04 are effective upon issuance and can be applied prospectively through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022, to December 31, 2024. Our long-term notes receivable from Saudi Aramco Rowan Offshore Drilling Company, our 50/50 unconsolidated joint venture with Saudi Aramco ("ARO"), from which we generate interest income on a LIBOR-based rate (the "Notes Receivable from ARO"), are impacted by the application of this standard. As the Notes Receivable from ARO bear interest on the LIBOR rate determined at the end of the preceding year, the rate governing our interest income in 2023 has already been determined. We expect to be able to modify the terms of our Notes Receivable from ARO to a comparable interest rate before the applicable LIBOR rate is no longer available and as such, do not expect this standard to have a material impact to our condensed consolidated financial statements.
With the exception of the updated standards discussed above, there have been no accounting pronouncements issued and not yet effective that have significance, or potential significance, to our condensed consolidated financial statements.
v3.23.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue from Contracts with Customers
 
Our drilling contracts with customers provide a drilling rig and drilling services on a day rate contract basis. Under day rate contracts, we provide an integrated service that includes the provision of a drilling rig and rig crews for which we receive a daily rate that may vary between the full rate and zero rate throughout the duration of the contractual term, depending on the operations of the rig. We also may receive lump-sum fees or similar compensation generally for the mobilization, demobilization, and capital upgrades of our rigs. Our customers bear substantially all of the costs of constructing the well and supporting drilling operations, as well as the economic risk relative to the success of the well.

Our drilling service provided under each drilling contract is a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. Total revenue is determined for each individual drilling contract by estimating both fixed and variable consideration expected to be earned over the contract term. Fixed consideration generally relates to activities such as mobilization, demobilization and capital upgrades of our rigs that are not distinct performance obligations within the context of our contracts and is recognized on a straight-line basis over the contract term. Variable consideration generally relates to distinct service periods during the contract term and is recognized in the period when the services are performed.

The remaining duration of our drilling contracts based on those in place as of March 31, 2023 was between approximately 1 month and 5 years.

Contract Assets and Liabilities

Contract assets represent amounts recognized as revenue but for which the right to invoice the customer is dependent upon our future performance. Once the previously recognized revenue is invoiced, the corresponding contract asset, or a portion thereof, is transferred to accounts receivable.
Contract liabilities generally represent fees received for mobilization, capital upgrades or in the case of our 50/50 unconsolidated joint venture with Saudi Aramco, represent the difference between the amounts billed under the bareboat charter arrangements and lease revenues earned. See “Note 3 – Equity Method Investment in ARO" for additional details regarding our balances with ARO.

Contract assets and liabilities are presented net on our Condensed Consolidated Balance Sheets on a contract-by-contract basis. Current contract assets and liabilities are included in Other current assets and Accrued liabilities and other, respectively, and noncurrent contract assets and liabilities are included in Other assets and Other liabilities, respectively, on our Condensed Consolidated Balance Sheets.

The following table summarizes our contract assets and contract liabilities (in millions):
 March 31, 2023 December 31, 2022
Current contract assets$1.3 $4.6 
Noncurrent contract assets$1.2 $0.7 
Current contract liabilities (deferred revenue)$65.8 $78.0 
Noncurrent contract liabilities (deferred revenue)$32.4 $41.0 

Changes in contract assets and liabilities during the period are as follows (in millions):
 Contract AssetsContract Liabilities
Balance as of December 31, 2022$5.3 $119.0 
Revenue recognized in advance of right to bill customer1.1 — 
Increase due to cash received— 15.2 
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance— (23.3)
Decrease due to amortization of deferred revenue added during the period— (4.2)
Decrease due to transfer to receivables and payables during the period(3.9)(8.5)
Balance as of March 31, 2023$2.5 $98.2 

Deferred Contract Costs

Costs incurred for upfront rig mobilizations and certain contract preparations are attributable to our future performance obligation under each respective drilling contract. These costs are deferred and amortized on a straight-line basis over the contract term. Deferred contract costs were included in Other current assets and Other assets on our Condensed Consolidated Balance Sheets and totaled $53.8 million and $57.3 million as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023 and 2022, amortization of such costs totaled $20.0 million and $11.7 million, respectively.

Deferred Certification Costs

We must obtain certifications from various regulatory bodies in order to operate our drilling rigs and must maintain such certifications through periodic inspections and surveys. The costs incurred in connection with maintaining such certifications, including inspections, tests, surveys and drydock, as well as remedial structural work and other compliance costs, are deferred and amortized on a straight-line basis over the corresponding certification periods. Deferred regulatory certification and compliance costs were included in Other current assets and Other assets on our Condensed Consolidated Balance Sheets and totaled $19.2 million and $16.2 million as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023 and 2022, amortization of such costs totaled $2.7 million and $0.3 million, respectively.
Future Amortization of Contract Liabilities and Deferred Costs

The table below reflects the expected future amortization of our contract liabilities and deferred costs recorded as of March 31, 2023. In the case of our contract liabilities related to our bareboat charter arrangements with ARO, the contract liability is not amortized and as such, the amount is reflected in the table below at the end of the current lease term. See "Note 3 - Equity Method Investment in ARO" for additional information on ARO and related arrangements.
(In millions)
 Remaining 2023202420252026 and Thereafter Total
Amortization of contract liabilities$53.3 $41.7 $2.0 $1.2 $98.2 
Amortization of deferred costs$51.7 $19.2 $1.6 $0.5 $73.0 
v3.23.1
Equity Method Investment In ARO Equity Method Investment In ARO
 3 Months Ended
Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investment In ARO Equity Method Investment in ARO
Background
    
ARO is a 50/50 unconsolidated joint venture between the Company and Saudi Aramco that owns and operates offshore drilling rigs in Saudi Arabia. As of March 31, 2023, ARO owns seven jackup rigs, has ordered two newbuild jackup rigs, and leases eight rigs from us through bareboat charter arrangements (the "Lease Agreements") whereby substantially all operating costs are incurred by ARO.

ARO has plans to purchase 20 newbuild jackup rigs over an approximate 10-year period. In January 2020, ARO ordered the first two newbuild jackups, and the delivery of these rigs is expected in 2023. ARO is expected to place orders for two additional newbuild jackups in the near term. In connection with these plans, we have a potential obligation to fund ARO for newbuild jackup rigs. See "Note 11 - Contingencies" for additional information.

Summarized Financial Information

The operating revenues of ARO presented below reflect revenues earned under drilling contracts with Saudi Aramco for the ARO-owned jackup rigs as well as the rigs leased from us.

Contract drilling expense is inclusive of the bareboat charter fees for the rigs leased from us. Cost incurred under the Secondment Agreement are included in Contract drilling expense and General and administrative, depending on the function to which the seconded employee's service related. See additional discussion below regarding these related-party transactions.
Summarized financial information for ARO is as follows (in millions):
Three Months Ended
March 31, 2023March 31, 2022
Revenues$123.6 $111.3 
Operating expenses
Contract drilling (exclusive of depreciation)90.9 84.2 
Depreciation15.0 16.5 
General and administrative4.6 5.2 
Operating income13.1 5.4 
Other expense, net10.4 3.3 
Provision for income taxes1.9 0.7 
Net income$0.8 $1.4 

March 31, 2023December 31, 2022
Cash and cash equivalents$101.2 $176.2 
Other current assets189.3 140.6 
Non-current assets830.2 818.1 
Total assets$1,120.7 $1,134.9 
Current liabilities$68.5 $86.3 
Non-current liabilities887.4 884.6 
Total liabilities$955.9 $970.9 

Equity in Earnings of ARO

We account for our interest in ARO using the equity method of accounting and only recognize our portion of ARO's net income, adjusted for basis differences as discussed below, which is included in Equity in earnings of ARO in our Condensed Consolidated Statements of Operations.

Our equity method investment in ARO was recorded at its estimated fair value at both the Effective Date and the date of our 2019 transaction where we acquired the subsidiary that held the joint venture interest. We computed the difference between the fair value of ARO's net assets and the carrying value of those net assets in ARO's U.S. GAAP financial statements ("basis differences") on each of these dates. These basis differences primarily related to ARO's long-lived assets and the recognition of intangible assets associated with certain of ARO's drilling contracts that were determined to have favorable terms as of the measurement dates.

Basis differences are amortized over the remaining life of the assets or liabilities to which they relate and are recognized as an adjustment to the Equity in earnings of ARO in our Condensed Consolidated Statements of Operations. The amortization of those basis differences is combined with our 50% interest in ARO's net income. A reconciliation of those components is presented below (in millions):
Three Months Ended
March 31,
20232022
50% interest in ARO net income$0.4 $0.7 
Amortization of basis differences2.9 3.6 
Equity in earnings of ARO$3.3 $4.3 
Related-Party Transactions

Revenues recognized by us related to the Lease Agreements were $18.8 million and $14.2 million for the three months ended March 31, 2023 and 2022, respectively.

Our balances related to the ARO lease agreements were as follows (in millions):

March 31, 2023December 31, 2022
Amounts receivable (1)
$16.9 $12.0 
Contract liabilities(2)
8.9 16.7 
Accounts payable(2)
$53.4 $43.2 

(1)Amounts receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheet.
(2)The per day bareboat charter amount in the Lease Agreements is subject to adjustment based on actual performance of the respective rig and as such contract liabilities related to the Lease Agreements are subject to adjustment during the lease term. Upon completion of the lease term, such amount becomes a payable to or a receivable from ARO.

During 2017 and 2018, the Company contributed cash to ARO in exchange for the 10-year Notes Receivable from ARO based on a one-year LIBOR rate, set as of the end of the year prior to the year applicable, plus two percent.

The principal amount and discount of the Notes Receivable from ARO were as follows (in millions):

March 31, 2023December 31, 2022
Principal amount$402.7 $402.7 
Discount(141.7)(148.7)
Carrying value$261.0 $254.0 
Interest receivable(1)(2)
$7.5 $— 

(1)Our interest receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheet.
(2)We collected our 2022 interest on the Notes Receivable from ARO in cash prior to December 31, 2022, and as such, there was no interest receivable from ARO as of December 31, 2022.

Interest income earned on the Notes Receivable from ARO was as follows (in millions):

Three Months Ended
March 31,
20232022
Interest income$7.5 $2.8 
Non-cash amortization7.0 7.7 
Total interest income on the Notes Receivable from ARO$14.5 $10.5 
v3.23.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying values and estimated fair values of certain of our financial instruments were as follows (in millions):
March 31, 2023December 31, 2022
Carrying Value  Estimated Fair Value  Carrying ValueEstimated Fair Value  
First Lien Notes (1)
$542.8 $561.8 $542.4 $545.9 
Long-term notes receivable from ARO (2)
$261.0 $321.9 $254.0 $336.7 

(1)The estimated fair value of the Senior Secured First Lien Notes due 2028 (the "First Lien Notes") was determined using quoted market prices, which are level 1 inputs.

(2)The estimated fair value of our Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium, which are considered to be level 2 inputs.

The estimated fair values of our cash and cash equivalents, restricted cash, accounts receivable and trade payables approximated their carrying values as of March 31, 2023 and December 31, 2022.
v3.23.1
Property and Equipment
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following (in millions):
March 31, 2023December 31, 2022
Drilling rigs and equipment$1,049.3 $1,036.5 
Work-in-progress108.0 59.8 
Other38.8 38.2 
$1,196.1 $1,134.5 

No assets were classified as held-for-sale on our Condensed Consolidated Balance Sheet as of March 31, 2023, or December 31, 2022.

In April 2023, VALARIS 54 was sold resulting in a pre-tax gain on the sale of approximately $28.0 million in the second quarter of 2023. The rig had an immaterial net book value as of March 31, 2023.
v3.23.1
Pension and Other Postretirement Benefits
 3 Months Ended
Mar. 31, 2023
Retirement Benefits [Abstract]  
Retirement Benefits [Text Block] Pension and Other Post-retirement Benefits
We have defined-benefit pension plans and retiree medical plans that provide post-retirement health and life insurance benefits.

The components of net periodic pension and retiree medical income were as follows (in millions):
Three Months Ended
March 31,
 20232022
Interest cost$7.7 $5.5 
Expected return on plan assets(7.7)(9.5)
Amortization of net gain(0.1)— 
Net periodic pension and retiree medical income (1)
$(0.1)$(4.0)

(1)Included in Other, net, in our Condensed Consolidated Statements of Operations.
v3.23.1
Earnings (Loss) Per Share
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Earnings (Loss) Per Share
 
Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Weighted-average shares outstanding used in our computation of diluted EPS is calculated using the treasury stock method and includes the effect of all potentially dilutive stock equivalents, including warrants, restricted stock unit awards and performance stock unit awards.

The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the three months ended March 31, 2023 and 2022 (in millions):

Three Months Ended
March 31,
 20232022
Income (loss) from continuing operations attributable to our shares $46.7 $(38.6)
Weighted average shares outstanding:
Basic75.2 75.0 
Effect of stock equivalents1.2 — 
Diluted76.4 75.0 

Anti-dilutive share awards totaling 8,000 were excluded from the computation of diluted EPS for the three months ended March 31, 2023.

Anti-dilutive share awards totaling 1.0 million were excluded from the computation of diluted EPS for the three months ended March 31, 2022. Due to the net loss position, our potentially dilutive share awards were not included in the computation of diluted EPS as the effect these shares would have been anti-dilutive.

We had 5,470,950 warrants outstanding (the "Warrants") as of March 31, 2023 to purchase common shares of Valaris Limited (the "Common Shares") which are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant and expire on April 29, 2028. The exercise of these Warrants into Common Shares would have a dilutive effect to the holdings of Valaris Limited's existing shareholders. These warrants are anti-dilutive for all periods presented.
v3.23.1
Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
First Lien Notes Indenture

On April 30, 2021, in accordance with the plan of reorganization and Backstop Commitment Agreement, dated August 18, 2020 (as amended, the "BCA"), the Company consummated the rights offering of the First Lien Notes and associated Common Shares in an aggregate principal amount of $550.0 million. For a summary of the First Lien Notes, see “Note 8 – Debt” to our consolidated financial statements included in our Annual Report on Form 10-K.

On April 3, 2023, the Company issued a notice of conditional redemption to the holders of the First Lien Notes at a redemption price equal to 104.0% of the principal amount of the First Lien Notes, plus accrued and unpaid interest to, but not including, the redemption date (the “Redemption Price”). On April 19, 2023, in connection with the issuance of our 8.375% Senior Secured Second Lien Notes due 2030 (the “Second Lien Notes”) discussed below, the Company discharged its obligations under the indenture governing the First Lien Notes and deposited the Redemption Price with Wilmington Savings Fund Society, as trustee under such indenture. The First Lien Notes will be redeemed on May 3, 2023.

Second Lien Notes Indenture

On April 19, 2023, the Company and Valaris Finance Company LLC (“Valaris Finance”), a wholly-owned subsidiary, issued and sold $700.0 million aggregate principal amount of Second Lien Notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Second Lien Notes bear an interest rate of 8.375% per annum, will mature on April 30, 2030 and were issued at par for net proceeds of approximately $685.0 million, after deducting the initial purchasers’ discount and offering expenses. The Company is using a portion of the net proceeds to fund the redemption of its outstanding First Lien Notes as described above.

Senior Secured Revolving Credit Facility

On April 3, 2023, the Company entered into a senior secured revolving credit agreement (the “Credit Agreement”). The Credit Agreement provides for commitments permitting borrowings of up to $375.0 million (which may be increased, subject to the satisfaction of certain conditions and the agreement of lenders to provide such additional commitments, by an additional $200.0 million pursuant to the terms of the Credit Agreement) and includes a $150.0 million sublimit for the issuance of letters of credit. Valaris Finance and certain other subsidiaries of the Company (together with Valaris Finance, the “Guarantors”) guarantee the Company’s obligations under the Credit Agreement, and the lenders have a first priority lien on the assets securing the Credit Agreement. The commitments under the Credit Agreement became available to be borrowed on April 19, 2023.
v3.23.1
Shareholders Equity
 3 Months Ended
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]  
Shareholders' Equity and Share-based Payments [Text Block] Shareholders' Equity
Activity in our various shareholders' equity accounts for the three months ended March 31, 2023 and 2022 were as follows (in millions):

 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained EarningsAOCI Non-controlling
Interest
BALANCE, December 31, 202275.2 $0.8 $1,097.9 $16.4 $160.1 $14.7 $8.0 
Net income— — — — 46.7 — 1.9 
Share-based compensation cost— — 5.7 — — — — 
Net changes in Pension and other postretirement benefits— — — — — (0.1)— 
Net other comprehensive loss— — — — — (0.1)— 
BALANCE, March 31, 202375.2 $0.8 $1,103.6 $16.4 $206.8 $14.5 $9.9 

 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Deficit		AOCI Non-controlling
Interest
BALANCE, December 31, 202175.0 $0.8 $1,083.0 $16.4 $(16.4)$(9.1)$2.7 
Net loss— — — — (38.6)— (1.2)
Share-based compensation cost— — 3.4 — — — — 
Net other comprehensive loss— — — — — (0.3)— 
BALANCE, March 31, 202275.0 $0.8 $1,086.4 $16.4 $(55.0)$(9.4)$1.5 

Share Repurchase Program

In 2022, our board of directors authorized a share repurchase program under which we may purchase up to $100.0 million of our outstanding Common Shares. In April 2023, the board of directors authorized an increase of this amount to $300.0 million. The share repurchase program does not have a fixed expiration, and may be modified, suspended or discontinued at any time. We did not repurchase any Common Shares during the three months ended March 31, 2023 under the repurchase program.
v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]  
Income Taxes Income Taxes
 
Historically, we calculated our provision for income taxes during interim reporting periods by applying the estimated annual effective tax rate for the full fiscal year to pre-tax income or loss, excluding discrete items, for the reporting period. We determined that since small changes in estimated pre-tax income or loss would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate of income taxes for the three months ended March 31, 2023 and 2022, and therefore, we used a discrete effective tax rate method to calculate income taxes for each of these periods. We will continue to evaluate income tax estimates under the historical method in subsequent quarters and employ a discrete effective tax rate method if warranted.

Discrete income tax benefit for the three months ended March 31, 2023 and 2022 was $43.8 million and $14.5 million, respectively, and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. Excluding the aforementioned discrete tax items, income tax expense for the three months ended March 31, 2023 and 2022 was $16.2 million and $13.8 million, respectively.
v3.23.1
Contingencies
 3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
ARO Newbuild Funding Obligations

In connection with our 50/50 unconsolidated joint venture, we have a potential obligation to fund ARO for newbuild jackup rigs. ARO has plans to purchase 20 newbuild jackup rigs over an approximate 10-year period. The joint venture partners intend for the newbuild jackup rigs to be financed out of available cash from ARO's operations and/or funds available from third-party debt financing. ARO paid a 25% down payment from cash on hand for each of the two newbuilds ordered in January 2020 and is actively exploring financing options for remaining payments due upon delivery. In the event ARO has insufficient cash from operations or is unable to obtain third-party financing, each partner may periodically be required to make additional capital contributions to ARO, up to a maximum aggregate contribution of $1.25 billion from each partner to fund the newbuild program. Each partner's commitment shall be reduced by the actual cost of each newbuild rig, as delivered, on a proportionate basis.

Letters of Credit

In the ordinary course of business with customers and others, we have entered into letters of credit to guarantee our performance as it relates to our drilling contracts, contract bidding, customs duties, tax appeals and other obligations in various jurisdictions. Letters of credit outstanding as of March 31, 2023 totaled $140.9 million and are issued under facilities provided by various banks and other financial institutions. Obligations under these letters of credit are not normally called, as we typically comply with the underlying performance requirement. As of March 31, 2023, we had collateral deposits in the amount of $19.4 million with respect to these agreements.

Patent Litigation

In December 2022, a subsidiary of Transocean Ltd. commenced an arbitration proceeding against us alleging breach of a license agreement related to certain dual-activity drilling patents. We are unable to estimate our potential exposure, if any, to the proceeding at this time but do not believe that our ultimate liability, if any, resulting from this proceeding will have a material effect on our consolidated financial condition, results of operations or cash flows. We do not believe that we have breached the license agreement and intend to defend ourselves vigorously against this claim.

Other Matters
In addition to the foregoing, we are named defendants or parties in certain other lawsuits, claims or proceedings incidental to our business and are involved from time to time as parties to governmental investigations or proceedings, including matters related to taxation, arising in the ordinary course of business. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, we do not expect these matters to have a material adverse effect on our financial position, operating results and cash flows.
v3.23.1
Segment Information
 3 Months Ended
Mar. 31, 2023
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 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.

Segment information for the three months ended March 31, 2023 and 2022, respectively, are presented below (in millions).

Three Months Ended March 31, 2023
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$214.8 $169.8 $123.6 $45.5 $(123.6)$430.1 
Operating expenses
Contract drilling (exclusive of depreciation)174.6 148.9 90.9 20.2 (57.4)377.2 
Depreciation13.0 9.0 15.0 1.3 (15.0)23.3 
General and administrative— — 4.6 — 19.8 24.4 
Equity in earnings of ARO— — — — 3.3 3.3 
Operating income$27.2 $11.9 $13.1 $24.0 $(67.7)$8.5 
Property and equipment, net$515.7 $404.1 $788.6 $55.6 $(748.5)$1,015.5 

Three Months Ended March 31, 2022
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$99.7 $180.7 $111.3 $38.0 $(111.3)$318.4 
Operating expenses
Contract drilling (exclusive of depreciation)147.6 139.2 84.2 15.5 (55.2)331.3 
Depreciation12.2 9.1 16.5 0.9 (16.2)22.5 
General and administrative— — 5.2 — 13.6 18.8 
Equity in earnings of ARO— — — — 4.3 4.3 
Operating income (loss)$(60.1)$32.4 $5.4 $21.6 $(49.2)$(49.9)
Property and equipment, net$457.6 $387.1 $730.9 $51.7 $(697.1)$930.2 

Information about Geographic Areas

As of March 31, 2023, the geographic distribution of our and ARO's drilling rigs was as follows:
FloatersJackupsOtherTotal ValarisARO
North & South America 76—13—
Europe & the Mediterranean412—16—
Middle East & Africa368177
Asia & Pacific Rim24—6—
Total16288527
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.

We are a party to contracts whereby we have the option to take delivery of two recently constructed drillships that are not included in the table above.

ARO has ordered two newbuild jackups which are under construction in the Middle East that are not included in the table above.
v3.23.1
Supplemental Financial Information
 3 Months Ended
Mar. 31, 2023
Supplemental Financial Information [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Condensed Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):
March 31,
2023		December 31,
2022
Trade$339.6 $345.7 
Income tax receivables47.9 93.6 
Other20.6 24.6 
 408.1 463.9 
Allowance for doubtful accounts(14.7)(14.8)
 $393.4 $449.1 

Other current assets consisted of the following (in millions):
March 31,
2023		December 31,
2022
Deferred costs$63.4 $59.1 
Prepaid taxes47.3 44.6 
Prepaid expenses17.6 17.5 
Other29.8 27.4 
 $158.1 $148.6 
        
Accrued liabilities and other consisted of the following (in millions):
March 31,
2023		December 31,
2022
Deferred revenue$65.8 $78.0 
Personnel costs60.6 55.8 
Income and other taxes payable53.5 41.4 
Accrued claims25.6 27.2 
Accrued interest18.9 7.6 
Lease liabilities8.8 9.4 
Other34.5 28.5 
 $267.7 $247.9 
        
Other liabilities consisted of the following (in millions):
March 31,
2023		December 31,
2022
Unrecognized tax benefits (inclusive of interest and penalties)$230.1 $275.0 
Pension and other post-retirement benefits158.7 159.8 
Other75.8 80.8 
 $464.6 $515.6 

Condensed Consolidated Statements of Operations Information

Other, net consisted of the following (in millions):

Three Months Ended
March 31,
20232022
Net foreign currency exchange gains$0.5 $4.7 
Net periodic pension income0.1 4.0 
Net gain on sale of property0.1 2.5 
Other expense(0.1)(1.2)
$0.6 $10.0 


Condensed Consolidated Statement of Cash Flows Information

Our restricted cash of $21.5 million and $24.4 million at March 31, 2023 and December 31, 2022, respectively, consists primarily of $19.4 million and $20.7 million of collateral on letters of credit for each respective period. See "Note 11 - Contingencies" for more information regarding our letters of credit.

We received an income tax refund of $45.9 million during the first quarter of 2023 related to the U.S. Coronavirus Aid, Relief, and Economic Security Act.

Concentration of Risk

Credit Risk - We are exposed to credit risk relating to our receivables from customers and our cash and cash equivalents. We mitigate our credit risk relating to receivables from customers, which consist primarily of major international, government-owned and independent oil and gas companies, by performing ongoing credit evaluations. We also maintain reserves for potential credit losses, which generally have been within our expectations.

Customer Concentration - Consolidated revenues with customers that individually contributed 10% or more of revenue were as follows:
Three Months Ended March 31, 2023Three Months Ended March 31, 2022
FloatersJackupsOtherTotalFloatersJackupsOtherTotal
Eni S.p.A7 %7 %— %14 %4 %6 %— %10 %
BP plc2 %5 %6 %13 %7 %2 %7 %16 %
Shell plc5 %2 %— %7 %7 %4 %— %11 %
Other customers (1)
36 %25 %5 %66 %13 %45 %5 %63 %
50 %39 %11 %100 %31 %57 %12 %100 %
(1) Other customers includes customers that individually contributed to less than 10% of our total revenues.

Geographic Concentration - For purposes of our geographic disclosure, we attribute revenues to the geographic location where such revenues are earned. Consolidated revenues for locations that individually had 10% or more of revenue were as follows (in millions):
Three Months Ended March 31, 2023Three Months Ended March 31, 2022
FloatersJackupsOtherTotalFloatersJackupsOtherTotal
U.S. Gulf of Mexico$41.7 $8.2 $26.1 $76.0 $20.6 $6.7 $23.3 $50.6 
United Kingdom— 53.5 — 53.5 — 65.6 — 65.6 
Australia37.7 12.9 — 50.6 12.0 0.1 — 12.1 
Saudi Arabia— 19.9 19.4 39.3 — 23.5 14.6 38.1 
Other countries (1)
135.4 75.3 — 210.7 67.1 84.8 0.1 152.0 
$214.8 $169.8 $45.5 $430.1 $99.7 $180.7 $38.0 $318.4 
v3.23.1
Unaudited Condensed Consolidated Financial Statements (Policies)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Accounting, Policy Unaudited Condensed Consolidated Financial Statements
 
We prepared the accompanying condensed consolidated financial statements of Valaris Limited and its subsidiaries (the "Company," "Valaris," "our," "we" or "us") in accordance with accounting principles generally accepted in the United States of America ("GAAP"), pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") included in the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial information included in this report is unaudited but, in our opinion, includes all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The December 31, 2022 Condensed Consolidated Balance Sheet data was derived from our 2022 audited consolidated financial statements but does not include all disclosures required by GAAP. The preparation of our condensed consolidated financial statements requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the related revenues and expenses and disclosures of gain and loss contingencies as of the date of the financial statements. Actual results could differ from those estimates.

Results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2023, or for any future period. We recommend these condensed consolidated financial statements be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 21, 2023 (our "Annual Report").
New Accounting Pronouncements
New Accounting Pronouncements

Recently adopted accounting pronouncements

Business Combinations - In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“Update 2021-08”). ASU No. 2021-08 requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 and provides practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments also apply to contract assets and contract liabilities from other contracts to which the provisions of Topic 606 apply, such as contract liabilities for the sale of nonfinancial assets within the scope of Subtopic 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. The FASB issued the update to improve the accounting for acquired revenue contracts with customers in a business combination. Update 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We adopted Update 2021-08 effective January 1, 2023 with no material impact to our condensed consolidated financial statements upon adoption.
Accounting pronouncements to be adopted

Reference Rate Reform - In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("Update 2020-04"), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in Update 2020-04 apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients and that are retained through the end of the hedging relationship. The provisions in Update 2020-04 are effective upon issuance and can be applied prospectively through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022, to December 31, 2024. Our long-term notes receivable from Saudi Aramco Rowan Offshore Drilling Company, our 50/50 unconsolidated joint venture with Saudi Aramco ("ARO"), from which we generate interest income on a LIBOR-based rate (the "Notes Receivable from ARO"), are impacted by the application of this standard. As the Notes Receivable from ARO bear interest on the LIBOR rate determined at the end of the preceding year, the rate governing our interest income in 2023 has already been determined. We expect to be able to modify the terms of our Notes Receivable from ARO to a comparable interest rate before the applicable LIBOR rate is no longer available and as such, do not expect this standard to have a material impact to our condensed consolidated financial statements.
With the exception of the updated standards discussed above, there have been no accounting pronouncements issued and not yet effective that have significance, or potential significance, to our condensed consolidated financial statements.
v3.23.1
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]
The following table summarizes our contract assets and contract liabilities (in millions):
 March 31, 2023 December 31, 2022
Current contract assets$1.3 $4.6 
Noncurrent contract assets$1.2 $0.7 
Current contract liabilities (deferred revenue)$65.8 $78.0 
Noncurrent contract liabilities (deferred revenue)$32.4 $41.0 

Changes in contract assets and liabilities during the period are as follows (in millions):
 Contract AssetsContract Liabilities
Balance as of December 31, 2022$5.3 $119.0 
Revenue recognized in advance of right to bill customer1.1 — 
Increase due to cash received— 15.2 
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance— (23.3)
Decrease due to amortization of deferred revenue added during the period— (4.2)
Decrease due to transfer to receivables and payables during the period(3.9)(8.5)
Balance as of March 31, 2023$2.5 $98.2 
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
The table below reflects the expected future amortization of our contract liabilities and deferred costs recorded as of March 31, 2023. In the case of our contract liabilities related to our bareboat charter arrangements with ARO, the contract liability is not amortized and as such, the amount is reflected in the table below at the end of the current lease term. See "Note 3 - Equity Method Investment in ARO" for additional information on ARO and related arrangements.
(In millions)
 Remaining 2023202420252026 and Thereafter Total
Amortization of contract liabilities$53.3 $41.7 $2.0 $1.2 $98.2 
Amortization of deferred costs$51.7 $19.2 $1.6 $0.5 $73.0 
v3.23.1
Equity Method Investment In ARO (Tables)
 3 Months Ended
Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
Summarized financial information for ARO is as follows (in millions):
Three Months Ended
March 31, 2023March 31, 2022
Revenues$123.6 $111.3 
Operating expenses
Contract drilling (exclusive of depreciation)90.9 84.2 
Depreciation15.0 16.5 
General and administrative4.6 5.2 
Operating income13.1 5.4 
Other expense, net10.4 3.3 
Provision for income taxes1.9 0.7 
Net income$0.8 $1.4 

March 31, 2023December 31, 2022
Cash and cash equivalents$101.2 $176.2 
Other current assets189.3 140.6 
Non-current assets830.2 818.1 
Total assets$1,120.7 $1,134.9 
Current liabilities$68.5 $86.3 
Non-current liabilities887.4 884.6 
Total liabilities$955.9 $970.9 
A reconciliation of those components is presented below (in millions):
Three Months Ended
March 31,
20232022
50% interest in ARO net income$0.4 $0.7 
Amortization of basis differences2.9 3.6 
Equity in earnings of ARO$3.3 $4.3 
Schedule of Related Party Transactions
Our balances related to the ARO lease agreements were as follows (in millions):

March 31, 2023December 31, 2022
Amounts receivable (1)
$16.9 $12.0 
Contract liabilities(2)
8.9 16.7 
Accounts payable(2)
$53.4 $43.2 

(1)Amounts receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheet.
(2)The per day bareboat charter amount in the Lease Agreements is subject to adjustment based on actual performance of the respective rig and as such contract liabilities related to the Lease Agreements are subject to adjustment during the lease term. Upon completion of the lease term, such amount becomes a payable to or a receivable from ARO.
The principal amount and discount of the Notes Receivable from ARO were as follows (in millions):

March 31, 2023December 31, 2022
Principal amount$402.7 $402.7 
Discount(141.7)(148.7)
Carrying value$261.0 $254.0 
Interest receivable(1)(2)
$7.5 $— 

(1)Our interest receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheet.
(2)We collected our 2022 interest on the Notes Receivable from ARO in cash prior to December 31, 2022, and as such, there was no interest receivable from ARO as of December 31, 2022.

Interest income earned on the Notes Receivable from ARO was as follows (in millions):

Three Months Ended
March 31,
20232022
Interest income$7.5 $2.8 
Non-cash amortization7.0 7.7 
Total interest income on the Notes Receivable from ARO$14.5 $10.5 
v3.23.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments
The carrying values and estimated fair values of certain of our financial instruments were as follows (in millions):
March 31, 2023December 31, 2022
Carrying Value  Estimated Fair Value  Carrying ValueEstimated Fair Value  
First Lien Notes (1)
$542.8 $561.8 $542.4 $545.9 
Long-term notes receivable from ARO (2)
$261.0 $321.9 $254.0 $336.7 

(1)The estimated fair value of the Senior Secured First Lien Notes due 2028 (the "First Lien Notes") was determined using quoted market prices, which are level 1 inputs.

(2)The estimated fair value of our Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium, which are considered to be level 2 inputs.
v3.23.1
Property and Equipment (Tables)
 3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property And Equipment
Property and equipment consisted of the following (in millions):
March 31, 2023December 31, 2022
Drilling rigs and equipment$1,049.3 $1,036.5 
Work-in-progress108.0 59.8 
Other38.8 38.2 
$1,196.1 $1,134.5 
v3.23.1
Pension and Other Postretirement Benefits (Tables)
 3 Months Ended
Mar. 31, 2023
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs [Table Text Block] The components of net periodic pension and retiree medical income were as follows (in millions):
Three Months Ended
March 31,
 20232022
Interest cost$7.7 $5.5 
Expected return on plan assets(7.7)(9.5)
Amortization of net gain(0.1)— 
Net periodic pension and retiree medical income (1)
$(0.1)$(4.0)

(1)Included in Other, net, in our Condensed Consolidated Statements of Operations.
v3.23.1
Earnings (Loss) Per Share (Tables)
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share - Reconciliation of Weighted Average Shares
The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the three months ended March 31, 2023 and 2022 (in millions):

Three Months Ended
March 31,
 20232022
Income (loss) from continuing operations attributable to our shares $46.7 $(38.6)
Weighted average shares outstanding:
Basic75.2 75.0 
Effect of stock equivalents1.2 — 
Diluted76.4 75.0 
v3.23.1
Shareholders Equity (Tables)
 3 Months Ended
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]  
Schedule Of Activity In Our Various Shareholders Equity [Table Text Block]
Activity in our various shareholders' equity accounts for the three months ended March 31, 2023 and 2022 were as follows (in millions):

 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained EarningsAOCI Non-controlling
Interest
BALANCE, December 31, 202275.2 $0.8 $1,097.9 $16.4 $160.1 $14.7 $8.0 
Net income— — — — 46.7 — 1.9 
Share-based compensation cost— — 5.7 — — — — 
Net changes in Pension and other postretirement benefits— — — — — (0.1)— 
Net other comprehensive loss— — — — — (0.1)— 
BALANCE, March 31, 202375.2 $0.8 $1,103.6 $16.4 $206.8 $14.5 $9.9 

 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Deficit		AOCI Non-controlling
Interest
BALANCE, December 31, 202175.0 $0.8 $1,083.0 $16.4 $(16.4)$(9.1)$2.7 
Net loss— — — — (38.6)— (1.2)
Share-based compensation cost— — 3.4 — — — — 
Net other comprehensive loss— — — — — (0.3)— 
BALANCE, March 31, 202275.0 $0.8 $1,086.4 $16.4 $(55.0)$(9.4)$1.5 
v3.23.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2023
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Schedule Of Segment Reporting Information
Segment information for the three months ended March 31, 2023 and 2022, respectively, are presented below (in millions).

Three Months Ended March 31, 2023
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$214.8 $169.8 $123.6 $45.5 $(123.6)$430.1 
Operating expenses
Contract drilling (exclusive of depreciation)174.6 148.9 90.9 20.2 (57.4)377.2 
Depreciation13.0 9.0 15.0 1.3 (15.0)23.3 
General and administrative— — 4.6 — 19.8 24.4 
Equity in earnings of ARO— — — — 3.3 3.3 
Operating income$27.2 $11.9 $13.1 $24.0 $(67.7)$8.5 
Property and equipment, net$515.7 $404.1 $788.6 $55.6 $(748.5)$1,015.5 

Three Months Ended March 31, 2022
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$99.7 $180.7 $111.3 $38.0 $(111.3)$318.4 
Operating expenses
Contract drilling (exclusive of depreciation)147.6 139.2 84.2 15.5 (55.2)331.3 
Depreciation12.2 9.1 16.5 0.9 (16.2)22.5 
General and administrative— — 5.2 — 13.6 18.8 
Equity in earnings of ARO— — — — 4.3 4.3 
Operating income (loss)$(60.1)$32.4 $5.4 $21.6 $(49.2)$(49.9)
Property and equipment, net$457.6 $387.1 $730.9 $51.7 $(697.1)$930.2 
Schedule Of Geographic Distribution Of Rigs By Segment
As of March 31, 2023, the geographic distribution of our and ARO's drilling rigs was as follows:
FloatersJackupsOtherTotal ValarisARO
North & South America 76—13—
Europe & the Mediterranean412—16—
Middle East & Africa368177
Asia & Pacific Rim24—6—
Total16288527
v3.23.1
Supplemental Financial Information (Tables)
 3 Months Ended
Mar. 31, 2023
Supplemental Financial Information [Abstract]  
Accounts Receivable, Net
Accounts receivable, net, consisted of the following (in millions):
March 31,
2023		December 31,
2022
Trade$339.6 $345.7 
Income tax receivables47.9 93.6 
Other20.6 24.6 
 408.1 463.9 
Allowance for doubtful accounts(14.7)(14.8)
 $393.4 $449.1 
Other Current Assets
Other current assets consisted of the following (in millions):
March 31,
2023		December 31,
2022
Deferred costs$63.4 $59.1 
Prepaid taxes47.3 44.6 
Prepaid expenses17.6 17.5 
Other29.8 27.4 
 $158.1 $148.6 
Schedule of Accrued Liabilities
Accrued liabilities and other consisted of the following (in millions):
March 31,
2023		December 31,
2022
Deferred revenue$65.8 $78.0 
Personnel costs60.6 55.8 
Income and other taxes payable53.5 41.4 
Accrued claims25.6 27.2 
Accrued interest18.9 7.6 
Lease liabilities8.8 9.4 
Other34.5 28.5 
 $267.7 $247.9 
Other Liabilities
Other liabilities consisted of the following (in millions):
March 31,
2023		December 31,
2022
Unrecognized tax benefits (inclusive of interest and penalties)$230.1 $275.0 
Pension and other post-retirement benefits158.7 159.8 
Other75.8 80.8 
 $464.6 $515.6 
Schedule of Other Nonoperating Income, by Component
Other, net consisted of the following (in millions):

Three Months Ended
March 31,
20232022
Net foreign currency exchange gains$0.5 $4.7 
Net periodic pension income0.1 4.0 
Net gain on sale of property0.1 2.5 
Other expense(0.1)(1.2)
$0.6 $10.0 
Schedule of Revenue by Major Customers by Reporting Segments Consolidated revenues with customers that individually contributed 10% or more of revenue were as follows:
Three Months Ended March 31, 2023Three Months Ended March 31, 2022
FloatersJackupsOtherTotalFloatersJackupsOtherTotal
Eni S.p.A7 %7 %— %14 %4 %6 %— %10 %
BP plc2 %5 %6 %13 %7 %2 %7 %16 %
Shell plc5 %2 %— %7 %7 %4 %— %11 %
Other customers (1)
36 %25 %5 %66 %13 %45 %5 %63 %
50 %39 %11 %100 %31 %57 %12 %100 %
(1) Other customers includes customers that individually contributed to less than 10% of our total revenues.
Revenue from External Customers by Geographic Areas Consolidated revenues for locations that individually had 10% or more of revenue were as follows (in millions):
Three Months Ended March 31, 2023Three Months Ended March 31, 2022
FloatersJackupsOtherTotalFloatersJackupsOtherTotal
U.S. Gulf of Mexico$41.7 $8.2 $26.1 $76.0 $20.6 $6.7 $23.3 $50.6 
United Kingdom— 53.5 — 53.5 — 65.6 — 65.6 
Australia37.7 12.9 — 50.6 12.0 0.1 — 12.1 
Saudi Arabia— 19.9 19.4 39.3 — 23.5 14.6 38.1 
Other countries (1)
135.4 75.3 — 210.7 67.1 84.8 0.1 152.0 
$214.8 $169.8 $45.5 $430.1 $99.7 $180.7 $38.0 $318.4 
(1) Other countries includes locations that individually contributed to less than 10% of total revenues.
v3.23.1
Revenue from Contracts with Customers (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Capitalized Contract Cost [Line Items]      
Capitalized Contract Cost, Net $ 73.0    
Upfront Rig Mobilizations And Certain Contract Preparation [Member]      
Capitalized Contract Cost [Line Items]      
Capitalized Contract Cost, Net 53.8   $ 57.3
Capitalized Contract Cost, Amortization 20.0 $ 11.7  
Deferred Certification Costs      
Capitalized Contract Cost [Line Items]      
Capitalized Contract Cost, Net 19.2   $ 16.2
Capitalized Contract Cost, Amortization $ 2.7 $ 0.3  
Minimum      
Capitalized Contract Cost [Line Items]      
Remaining duration of drilling contracts 1 month    
Maximum      
Capitalized Contract Cost [Line Items]      
Remaining duration of drilling contracts 5 years    
v3.23.1
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Current contract assets $ 1.3 $ 4.6
Noncurrent contract assets 1.2 0.7
Current contract liabilities (deferred revenue) 65.8 78.0
Noncurrent contract liabilities (deferred revenue) $ 32.4 $ 41.0
v3.23.1
Revenue from Contracts with Customers Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Contract Assets    
Contract with Customer, Asset, after Allowance for Credit Loss $ 2.5 $ 5.3
Revenue recognized in advance of right to bill customer 1.1  
Decrease due to transfer to receivables during the period (3.9)  
Contract Liabilities    
Contract with Customer, Liability 98.2 $ 119.0
Contract with Customer, Liability, Increase from Cash Receipts 15.2  
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance (23.3)  
Contract with Customer, Liability, Revenue Recognized, Added During Period (4.2)  
Increase (Decrease) in Contract with Customer, Liability $ (8.5)  
v3.23.1
Revenue from Contracts with Customers Future Amortization of Liabilities and Deferred Costs (Details)
$ in Millions
Mar. 31, 2023
USD ($)
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 98.2
Capitalized Contract Cost, Net $ 73.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 9 months
Revenue, Remaining Performance Obligation, Amount $ 53.3
Capitalized Contract Cost, Amortization Expense, Remainder Of Fiscal Year $ 51.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Amount $ 41.7
Capitalized Contract Cost, Amortization Expense, Year Two $ 19.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Amount $ 2.0
Capitalized Contract Cost, Amortization Expense, Year Three $ 1.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Revenue, Remaining Performance Obligation, Amount $ 1.2
Capitalized Contract Cost, Amortization Expense, Year Four and Thereafter $ 0.5
v3.23.1
Equity Method Investment In ARO - Summarized Financial Data (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]      
OPERATING REVENUES $ 430.1 $ 318.4  
Contract drilling (exclusive of depreciation) 377.2 331.3  
Depreciation expense 23.3 22.5  
General and administrative 24.4 18.8  
Operating Income (Loss) 8.5 (49.9)  
OTHER INCOME (EXPENSE), NET 12.5 9.4  
INCOME TAX PROVISION (27.6) (0.7)  
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS 46.7 (38.6)  
Equity Method Investment, Summarized Financial Information [Abstract]      
    Cash and cash equivalents 822.5   $ 724.1
    Other current assets 158.1   148.6
Total assets 2,951.2   2,860.3
Liabilities, Current 591.8   504.4
Total liabilities 1,599.2   1,562.4
Investment Owned, Balance [Abstract]      
Equity in earnings of ARO 3.3 4.3  
ARO      
Investment Owned, Balance [Abstract]      
50% interest in ARO net income 0.4 0.7  
Amortization of basis differences 2.9 3.6  
Equity in earnings of ARO 3.3 4.3  
ARO      
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]      
OPERATING REVENUES 123.6 111.3  
Contract drilling (exclusive of depreciation) 90.9 84.2  
Depreciation expense 15.0 16.5  
General and administrative 4.6 5.2  
Operating Income (Loss) 13.1 5.4  
OTHER INCOME (EXPENSE), NET 10.4 3.3  
INCOME TAX PROVISION 1.9 0.7  
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS 0.8 $ 1.4  
Equity Method Investment, Summarized Financial Information [Abstract]      
    Cash and cash equivalents 101.2   176.2
    Other current assets 189.3   140.6
Non-current assets 830.2   818.1
Total assets 1,120.7   1,134.9
Liabilities, Current 68.5   86.3
Liabilities, Noncurrent 887.4   884.6
Total liabilities $ 955.9   $ 970.9
v3.23.1
Equity Method Investment in ARO - Schedule of Related Parties (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]      
Amounts receivable (1) $ 16.9   $ 12.0
Contract liabilities(2) 8.9   16.7
Accounts payable(2) 53.4   43.2
Carrying value 261.0   254.0
Non-cash amortization 7.0 $ 7.7  
ARO      
Schedule of Equity Method Investments [Line Items]      
Principal amount 402.7   402.7
Discount (141.7)   (148.7)
Carrying value 261.0   254.0
Interest receivable 7.5   $ 0.0
Interest income 7.5 2.8  
Non-cash amortization 7.0 7.7  
Total interest income on the Notes Receivable from ARO $ 14.5 $ 10.5  
v3.23.1
Equity Method Investment In ARO Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
jackup
drillship
Mar. 31, 2022
USD ($)
Jan. 31, 2020
drillship
Schedule of Equity Method Investments [Line Items]      
Number of Rigs Owned by ARO | jackup 7    
Total Number Of Contract Drilling Rigs 52    
Number of Newbuild Jackup Rigs | jackup 20    
Order Period 10 years    
ARO Rigs Under Construction | drillship 2   2
Shareholder Notes Payable, Term 10 years    
Other      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs 8    
ARO      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs 7    
ARO      
Schedule of Equity Method Investments [Line Items]      
Lease Revenue From Related Party | $ $ 18.8 $ 14.2  
London Interbank Offered Rate (LIBOR)      
Schedule of Equity Method Investments [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 2.00%    
Middle East & Africa      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs 17    
Middle East & Africa | Other      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs 8    
Middle East & Africa | ARO      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs 7    
Middle East & Africa | Work-in-progress | ARO      
Schedule of Equity Method Investments [Line Items]      
Total Number Of Contract Drilling Rigs | drillship 2    
ARO      
Schedule of Equity Method Investments [Line Items]      
Equity Method Investment, Ownership Percentage 50.00%    
v3.23.1
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
LONG-TERM NOTES RECEIVABLE FROM ARO $ 261.0 $ 254.0
Reported Value Measurement [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
LONG-TERM NOTES RECEIVABLE FROM ARO 261.0 254.0
Reported Value Measurement [Member] | Eight Point Two Five Percent Senior Lien Notes Due Two Thousand Twenty Eight Member | Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt 542.8 542.4
Estimate of Fair Value Measurement [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
LONG-TERM NOTES RECEIVABLE FROM ARO 321.9 336.7
Estimate of Fair Value Measurement [Member] | Eight Point Two Five Percent Senior Lien Notes Due Two Thousand Twenty Eight Member | Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt $ 561.8 $ 545.9
v3.23.1
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST $ 1,196.1 $ 1,134.5
Drilling rigs and equipment    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST 1,049.3 1,036.5
Work-in-progress    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST 108.0 59.8
Other    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST $ 38.8 $ 38.2
v3.23.1
Property and Equipment (Narratives) (Details)
$ in Millions
 1 Months Ended
Apr. 30, 2023
USD ($)
V54 | Operating Segments [Member] | Jackups | Subsequent Event  
Property, Plant and Equipment [Line Items]  
Gain (Loss) on Disposition of Other Assets $ 28.0
v3.23.1
Pension and other Postretirement Benefits - Narrative (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Retirement Benefits [Abstract]    
Defined Benefit Plan, Interest Cost $ 7.7 $ 5.5
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (7.7) (9.5)
Defined Benefit Plan, Amortization of Gain (Loss) 0.1 0.0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) $ (0.1) $ (4.0)
v3.23.1
Earnings (Loss) Per Share - Reconciliation of Weighted-Average Shares (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]    
Net Income (Loss) Attributable to Parent $ 46.7 $ (38.6)
Basic (in shares) 75.2 75.0
Unvested restricted stock units 1.2 0.0
Diluted (in shares) 76.4 75.0
v3.23.1
Earnings (Loss) Per Share (Narrative) (Details) - $ / shares
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Earnings Per Share [Abstract]    
Antidilutive share options excluded from computation of diluted earnings per share (in shares) 8,000 1,000,000
Class of Warrant or Right, Outstanding 5,470,950  
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 131.88  
v3.23.1
Debt (Narrative) (Details) - Senior Notes - USD ($)
 1 Months Ended
Apr. 19, 2023
Apr. 30, 2023
Apr. 03, 2023
Apr. 30, 2021
Revolving Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Line of Credit Facility, Maximum Borrowing Capacity     $ 375,000,000  
Line of Credit Facility, Additional Borrowing Capacity     200,000,000  
Revolving Credit Facility | Letter of Credit | Subsequent Event        
Debt Instrument [Line Items]        
Line of Credit Facility, Additional Borrowing Capacity     $ 150,000,000  
First Lien Notes        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount       $ 550,000,000
First Lien Notes | Debt Instrument, Redemption, Period One | Subsequent Event        
Debt Instrument [Line Items]        
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed   104.00%    
Second Lien Notes | Subsequent Event        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount $ 700,000,000      
Proceeds from Issuance of Debt $ 685,000,000      
Second Lien Notes | Debt Instrument Interest Rate Payout Option One Member | Subsequent Event        
Debt Instrument [Line Items]        
Debt Instrument, Interest Rate, Annual Payment Percent 8.375%      
Debt Instrument, Interest Rate, Stated Percentage 8.375%      
v3.23.1
Shareholders Equity Shareholders' Equity (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance $ 1,297.9  
Net income (loss) 48.6 $ (39.8)
Net other comprehensive income (loss) (0.2) $ (0.3)
Ending balance $ 1,352.0  
Common Stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance (in shares) 75.2 75.0
Beginning balance $ 0.8 $ 0.8
Ending balance (in shares) 75.2 75.0
Ending balance $ 0.8 $ 0.8
Additional Paid-in Capital    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance 1,097.9 1,083.0
Share-based compensation cost 5.7 3.4
Ending balance 1,103.6 1,086.4
Warrants    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance 16.4 16.4
Ending balance 16.4 16.4
Retained Earnings    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance 160.1 (16.4)
Net income (loss) 46.7 (38.6)
Ending balance 206.8 (55.0)
AOCI     
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance 14.7 (9.1)
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit (0.1)  
Net other comprehensive income (loss) (0.1) (0.3)
Ending balance 14.5 (9.4)
Non-controlling Interest    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning balance 8.0 2.7
Net income (loss) 1.9 (1.2)
Ending balance $ 9.9 $ 1.5
v3.23.1
Shareholders Equity Narrative (Details) - USD ($)
$ in Millions
Apr. 27, 2023
Sep. 08, 2022
Statement [Line Items]    
Stock Repurchase Program, Authorized Amount   $ 100.0
Subsequent Event    
Statement [Line Items]    
Stock Repurchase Program, Authorized Amount $ 300.0  
v3.23.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]    
Discrete Income Tax Expense (Benefit) $ 43.8 $ 14.5
Income Tax Expense (Benefit) Excluding Discrete Items $ 16.2 $ 13.8
v3.23.1
Contingencies (Narrative) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
drillship
jackup
Dec. 31, 2022
USD ($)
Jan. 31, 2020
drillship
Commitments and Contingencies Disclosure [Abstract]      
Number of Newbuild Jackup Rigs | jackup 20    
Order Period 10 years    
ARO Rigs Under Construction | drillship 2   2
Percentage of Down Payment Paid for ARO Newbuilds 25.00%    
Maximum Contingent Contributions To Joint Venture $ 1,250.0    
Letters of credit outstanding, amount 140.9    
Deposit Liabilities, Collateral Issued, Financial Instruments $ 19.4 $ 20.7  
v3.23.1
Segment Information (Narrative) (Details)
 3 Months Ended
Mar. 31, 2023
Reportable_segment
drillship
Segment Reporting Information [Line Items]  
Number of operating segments (in segments) | Reportable_segment 4
Number of Drilling Management Contracts | drillship 2
Total Number Of Contract Drilling Rigs 52
Middle East & Africa  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 17
v3.23.1
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Revenues $ 430.1 $ 318.4  
Operating expenses      
Cost of Goods and Services Sold 377.2 331.3  
Depreciation expense 23.3 22.5  
General and administrative 24.4 18.8  
Income (Loss) from Equity Method Investments (3.3) (4.3)  
Operating Income (Loss) 8.5 (49.9)  
Property, Plant and Equipment, Net (1,015.5) (930.2) $ (977.2)
Operating Segments [Member] | Floaters      
Segment Reporting Information [Line Items]      
Revenues 214.8 99.7  
Operating expenses      
Cost of Goods and Services Sold 174.6 147.6  
Depreciation expense 13.0 12.2  
General and administrative 0.0 0.0  
Income (Loss) from Equity Method Investments 0.0 0.0  
Operating Income (Loss) 27.2 (60.1)  
Property, Plant and Equipment, Net (515.7) (457.6)  
Operating Segments [Member] | Jackups      
Segment Reporting Information [Line Items]      
Revenues 169.8 180.7  
Operating expenses      
Cost of Goods and Services Sold 148.9 139.2  
Depreciation expense 9.0 9.1  
General and administrative 0.0 0.0  
Income (Loss) from Equity Method Investments 0.0 0.0  
Operating Income (Loss) 11.9 32.4  
Property, Plant and Equipment, Net (404.1) (387.1)  
Operating Segments [Member] | ARO      
Segment Reporting Information [Line Items]      
Revenues 123.6 111.3  
Operating expenses      
Cost of Goods and Services Sold 90.9 84.2  
Depreciation expense 15.0 16.5  
General and administrative 4.6 5.2  
Income (Loss) from Equity Method Investments 0.0 0.0  
Operating Income (Loss) 13.1 5.4  
Property, Plant and Equipment, Net (788.6) (730.9)  
Operating Segments [Member] | Other      
Segment Reporting Information [Line Items]      
Revenues 45.5 38.0  
Operating expenses      
Cost of Goods and Services Sold 20.2 15.5  
Depreciation expense 1.3 0.9  
General and administrative 0.0 0.0  
Income (Loss) from Equity Method Investments 0.0 0.0  
Operating Income (Loss) 24.0 21.6  
Property, Plant and Equipment, Net (55.6) (51.7)  
Corporate, Non-Segment [Member] | Reconciling Items      
Segment Reporting Information [Line Items]      
Revenues (123.6) (111.3)  
Operating expenses      
Cost of Goods and Services Sold (57.4) (55.2)  
Depreciation expense (15.0) (16.2)  
General and administrative 19.8 13.6  
Income (Loss) from Equity Method Investments (3.3) (4.3)  
Operating Income (Loss) (67.7) (49.2)  
Property, Plant and Equipment, Net $ 748.5 $ 697.1  
v3.23.1
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details)
Mar. 31, 2023
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 52
Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 16
Jackups  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 28
Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 8
ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
North & South America  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 13
North & South America | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
North & South America | Jackups  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 6
North & South America | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
North & South America | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
Europe & the Mediterranean  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 16
Europe & the Mediterranean | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 4
Europe & the Mediterranean | Jackups  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 12
Europe & the Mediterranean | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
Europe & the Mediterranean | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
Middle East & Africa  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 17
Middle East & Africa | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 3
Middle East & Africa | Jackups  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 6
Middle East & Africa | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 8
Middle East & Africa | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
Asia & Pacific Rim  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 6
Asia & Pacific Rim | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 2
Asia & Pacific Rim | Jackups  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 4
Asia & Pacific Rim | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
Asia & Pacific Rim | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
v3.23.1
Supplemental Financial Information (Accounts Receivable, Net) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 408.1 $ 463.9
Income Taxes Receivable 47.9 93.6
Allowance for doubtful accounts (14.7) (14.8)
Accounts receivable, net 393.4 449.1
Trade    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables 339.6 345.7
Other Accounts Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 20.6 $ 24.6
v3.23.1
Supplemental Financial Information (Other Current Assets) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Supplemental Financial Information [Abstract]    
Deferred costs $ 63.4 $ 59.1
Prepaid taxes 47.3 44.6
Prepaid expenses 17.6 17.5
Other 29.8 27.4
Other current assets $ 158.1 $ 148.6
v3.23.1
Supplemental Financial Information (Accrued Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Supplemental Financial Information [Abstract]    
Deferred revenue $ 65.8 $ 78.0
Personnel costs 60.6 55.8
Income and other taxes payable 53.5 41.4
Accrued claims 25.6 27.2
Accrued interest 18.9 7.6
Lease liabilities 8.8 9.4
Other 34.5 28.5
 Accrued liabilities and other $ 267.7 $ 247.9
v3.23.1
Supplemental Financial Information (Other Liabilities) (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Supplemental Financial Information [Abstract]    
Unrecognized tax benefits (inclusive of interest and penalties) $ 230.1 $ 275.0
Pension and other post-retirement benefits 158.7 159.8
Other 75.8 80.8
Other liabilities $ 464.6 $ 515.6
v3.23.1
Supplemental Financial Information (Other Income) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Supplemental Financial Information [Abstract]    
Foreign Currency Transaction Gain (Loss), before Tax $ 0.5 $ 4.7
Net periodic pension income (0.1) 4.0
Gain (Loss) on Sale of Properties 0.1 2.5
Other Nonoperating Expense (0.1) (1.2)
Other, net $ 0.6 $ 10.0
v3.23.1
Supplemental Financial Information Schedule of Revenue by Major Customers, by Reporting Segments (Details) - Revenue Benchmark [Member] - Customer Concentration Risk
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 100.00% 100.00%
British Petroleum    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 13.00% 16.00%
Shell    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 7.00% 11.00%
ENI    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 14.00% 10.00%
Other Customers    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 66.00% 63.00%
Floaters    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 50.00% 31.00%
Floaters | British Petroleum    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 2.00% 7.00%
Floaters | Shell    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 5.00% 7.00%
Floaters | ENI    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 7.00% 4.00%
Floaters | Other Customers    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 36.00% 13.00%
Jackups    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 39.00% 57.00%
Jackups | British Petroleum    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 5.00% 2.00%
Jackups | Shell    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 2.00% 4.00%
Jackups | ENI    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 7.00% 6.00%
Jackups | Other Customers    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 25.00% 45.00%
Managed Rigs    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 11.00% 12.00%
Managed Rigs | British Petroleum    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 6.00% 7.00%
Managed Rigs | Shell    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 0.00% 0.00%
Managed Rigs | ENI    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 0.00% 0.00%
Managed Rigs | Other Customers    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Concentration risk, percentage 5.00% 5.00%
v3.23.1
Supplemental Financial Information Revenue from External Customers by Geographic Areas (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES $ 430.1 $ 318.4
Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 430.1 318.4
US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 76.0 50.6
UNITED KINGDOM | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 53.5 65.6
AUSTRALIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 50.6 12.1
SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 39.3 38.1
Other Geographic Areas | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 210.7 152.0
Floaters | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 214.8 99.7
Floaters | US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 41.7 20.6
Floaters | UNITED KINGDOM | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 0.0 0.0
Floaters | AUSTRALIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 37.7 12.0
Floaters | SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 0.0 0.0
Floaters | Other Geographic Areas | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 135.4 67.1
Jackups | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 169.8 180.7
Jackups | US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 8.2 6.7
Jackups | UNITED KINGDOM | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 53.5 65.6
Jackups | AUSTRALIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 12.9 0.1
Jackups | SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 19.9 23.5
Jackups | Other Geographic Areas | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 75.3 84.8
Managed Rigs | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 45.5 38.0
Managed Rigs | US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 26.1 23.3
Managed Rigs | UNITED KINGDOM | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 0.0 0.0
Managed Rigs | AUSTRALIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 0.0 0.0
Managed Rigs | SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES 19.4 14.6
Managed Rigs | Other Geographic Areas | Revenue Benchmark [Member] | Geographic Concentration Risk    
Revenues from External Customers and Long-Lived Assets [Line Items]    
OPERATING REVENUES $ 0.0 $ 0.1
v3.23.1
Supplemental Financial Information - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Restricted Cash $ 21.5 $ 24.4
Deposit Liabilities, Collateral Issued, Financial Instruments 19.4 $ 20.7
Income Tax Refunds, Expected $ 45.9