VALARIS LTD, 10-Q filed on 8/2/2022
Quarterly Report
v3.22.2
Cover Page - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Jul. 28, 2022
Document Information [Line Items]      
Document Type   10-Q  
Document Quarterly Report   true  
Document Period End Date   Jun. 30, 2022  
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   2022  
Document Fiscal Period Focus   Q2  
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     75,178,547
Entity Bankruptcy Proceedings, Reporting Current true    
Common Class A [Member]      
Document Information [Line Items]      
Title of 12(b) Security   Common Shares, $0.01 par value share  
Trading Symbol   VAL  
Security Exchange Name   NYSE  
Warrants      
Document Information [Line Items]      
Title of 12(b) Security   Warrants to purchase Common Shares  
Trading Symbol   VAL WS  
Security Exchange Name   NYSE  
v3.22.2
Condensed Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Income Statement [Abstract]          
OPERATING REVENUES $ 90.3 $ 202.8 $ 413.3 $ 397.4 $ 731.7
OPERATING EXPENSES          
Contract Drilling 90.2 168.6 361.8 343.8 693.1
Asset Impairment Charges 0.0 0.0 34.5 756.5 34.5
Depreciation expense 37.5 16.6 22.3 159.6 44.8
General and Administrative Expense 6.4 12.7 19.0 30.7 37.8
Total operating expenses 134.1 197.9 437.6 1,290.6 810.2
Equity in earnings of ARO (1.2) (4.8) (8.7) (3.1) (13.0)
OPERATING INCOME (LOSS) (42.6) 9.7 (15.6) (890.1) (65.5)
OTHER INCOME (EXPENSE)          
Other Interest and Dividend Income 1.0 7.8 11.2 3.6 22.1
Interest expense, net (1.1) (8.0) (11.6) (2.4) (23.1)
Reorganization Items (3,532.4) (4.1) (0.7) (3,584.6) (1.7)
Other Nonoperating Income (Expense) 3.4 5.6 149.7 25.9 160.7
OTHER INCOME (EXPENSE), NET (3,529.1) 1.3 148.6 (3,557.5) 158.0
INCOME (LOSS) BEFORE INCOME TAXES (3,571.7) 11.0 133.0 (4,447.6) 92.5
Income Tax Expense (Benefit), Continuing Operations [Abstract]          
Current Income Tax Expense (Benefit) 3.6 14.0 12.9 34.4 12.8
Deferred income tax expense (benefit) (19.1) 1.1 7.3 (18.2) 6.7
Total provision for income taxes (15.5) 15.1 20.2 16.2 19.5
Net income (loss) (3,556.2) (4.1) 112.8 (4,463.8) 73.0
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (0.8) (2.1) (1.2) (3.2) 0.0
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (3,557.0) $ (6.2) $ 111.6 $ (4,467.0) $ 73.0
EARNINGS (LOSS) PER SHARE          
Earnings Per Share, Basic $ (17.81) $ (0.08) $ 1.49 $ (22.38) $ 0.97
Earnings Per Share, Diluted $ (17.81) $ (0.08) $ 1.48 $ (22.38) $ 0.97
WEIGHTED-AVERAGE SHARES OUTSTANDING          
Basic 199.7 75.0 75.0 199.6 75.0
Diluted 199.7 75.0 75.6 199.6 75.5
v3.22.2
Condensed Consolidated Statement Of Operations (Parenthetical) - USD ($)
$ in Millions
 1 Months Ended 4 Months Ended
Apr. 30, 2021
Apr. 30, 2021
Income Statement [Abstract]    
Contractual interest expense $ 32.6 $ 132.9
v3.22.2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]          
NET INCOME (LOSS) $ (3,556.2) $ (4.1) $ 112.8 $ (4,463.8) $ 73.0
OTHER COMPREHENSIVE INCOME (LOSS), NET          
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit 0.0 0.0 (0.1) 0.1 (0.1)
Reclassification of net gains on derivative instruments from other comprehensive loss into net loss   0.0   5.6 0.0
Other (0.2) (0.2) 0.3 0.0 0.0
NET OTHER COMPREHENSIVE INCOME (LOSS) (0.2) (0.2) 0.2 (5.5) (0.1)
COMPREHENSIVE INCOME (LOSS) (3,556.4) (4.3) 113.0 (4,469.3) 72.9
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (0.8) (2.1) (1.2) (3.2) 0.0
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ (3,557.2) $ (6.4) $ 111.8 $ (4,472.5) $ 72.9
v3.22.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
CURRENT ASSETS    
    Cash and cash equivalents $ 553.5 $ 608.7
Restricted Cash 23.8 35.9
    Accounts receivable, net 544.6 444.2
    Other current assets 159.0 117.8
Total current assets 1,280.9 1,206.6
PROPERTY AND EQUIPMENT, AT COST 1,042.6 957.0
    Less accumulated depreciation 110.9 66.1
Property, Plant and Equipment, Net, Total 931.7 890.9
Due from Joint Ventures, Noncurrent 264.5 249.1
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures 99.6 86.6
OTHER ASSETS 184.1 176.0
Total assets 2,760.8 2,609.2
CURRENT LIABILITIES    
Accounts payable - trade 287.0 225.8
Accrued liabilities and other 260.1 196.2
Total current liabilities 547.1 422.0
LONG-TERM DEBT 545.7 545.3
OTHER LIABILITIES 527.6 581.1
Total liabilities 1,620.4 1,548.4
Commitments and Contingencies
VALARIS SHAREHOLDERS' EQUITY    
Stock warrants 16.4 16.4
Additional paid-in capital 1,089.9 1,083.0
Retained earnings (deficit) 40.0 (33.0)
Accumulated other comprehensive loss (9.2) (9.1)
Treasury shares, at cost, 3 thousand shares as of June 30, 2022 0.2 0.0
Total Valaris shareholders' equity 1,137.7 1,058.1
NONCONTROLLING INTERESTS 2.7 2.7
Total equity 1,140.4 1,060.8
Total liabilities and shareholders' equity 2,760.8 2,609.2
Preferred Stock    
VALARIS SHAREHOLDERS' EQUITY    
Shares outstanding 0.0 0.0
Common Stock    
VALARIS SHAREHOLDERS' EQUITY    
Shares outstanding $ 0.8 $ 0.8
v3.22.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2022
Dec. 31, 2021
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) 700,000,000 700,000,000
Common shares, shares issued (in shares) 75,000,000 75,000,000
Preferred Stock, Par or Stated Value Per Share $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 150,000,000 150,000,000
Preferred Stock, Value, Issued 0 0
Treasury shares, shares held (in shares)   3,000
v3.22.2
Condensed Consolidated Statements Of Cash Flows - USD ($)
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
OPERATING ACTIVITIES          
Net income (loss) $ (3,556,200,000) $ (4,100,000) $ 112,800,000 $ (4,463,800,000) $ 73,000,000.0
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
(Gain) loss on asset disposals   100,000   (6,000,000.0) (137,600,000)
Depreciation expense 37,500,000 16,600,000 22,300,000 159,600,000 44,800,000
Loss on impairment 0 0 34,500,000 756,500,000 34,500,000
Accretion of discount on shareholders note   (6,000,000) (7,700,000) 0 (15,400,000)
Equity in earnings of ARO (1,200,000) (4,800,000) (8,700,000) (3,100,000) (13,000,000.0)
Net periodic pension and retiree medical income (1,400,000) (2,400,000) (4,100,000) (5,400,000) (8,100,000)
Deferred income tax expense (benefit) (19,100,000) 1,100,000 7,300,000 (18,200,000) 6,700,000
Share-based compensation expense   0   4,800,000 6,900,000
Amortization, net   (300,000)   (4,800,000) (1,600,000)
Amortization of debt issuance cost   400,000   0 400,000
Non-cash reorganization items, net   0   3,487,300,000 0
Other   (200,000)   7,300,000 300,000
Changes in operating assets and liabilities   (25,700,000)   68,500,000 (102,300,000)
Contributions to pension plans and other post-retirement benefits   600,000   22,500,000 2,700,000
Net cash used in operating activities   (25,900,000)   (39,800,000) (114,100,000)
INVESTING ACTIVITIES          
Additions to property and equipment   8,100,000   8,700,000 99,600,000
Net proceeds from disposition of assets   200,000   30,100,000 146,500,000
Net cash provided by (used in) investing activities   (7,900,000)   21,400,000 46,900,000
FINANCING ACTIVITIES          
Issuance of first lien notes   0   520,000,000.0 0
Payments to Predecessor creditors   0   129,900,000 0
Other   0   (1,400,000) (200,000)
Net cash provided by (used in) financing activities   0   388,700,000 (200,000)
Effect of exchange rate changes on cash and cash equivalents and restricted cash   (300,000)   (100,000) 100,000
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH   (34,100,000)   370,200,000 (67,300,000)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD   696,000,000.0   325,800,000 644,600,000
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 696,000,000.0 $ 661,900,000 $ 577,300,000 $ 696,000,000.0 $ 577,300,000
v3.22.2
Unaudited Condensed Consolidated Financial Statements
 6 Months Ended
Jun. 30, 2022
Unaudited Condensed Consolidated 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 ("Valaris" or "Successor") 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, 2021 Condensed Consolidated Balance Sheet data was derived from our 2021 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 and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022, 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, 2021, filed with the SEC on February 22, 2022 (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. Certain previously reported amounts have been reclassified to conform to the current year presentation.

Emergence from Chapter 11 Bankruptcy and Fresh Start Accounting

As described in "Note 1. Description of the Business and Summary of Significant Accounting Policies", "Note 2. Chapter 11 Proceedings" and "Note 3. Fresh Start Accounting" from our Annual Report, we filed voluntary petitions for bankruptcy on August 19, 2020 (the “Petition Date”), and on April 30, 2021 (the "Effective Date") emerged from bankruptcy.

References to the financial position and results of operations of the "Successor" relate to the financial position and results of operations of Valaris Limited, together with its consolidated subsidiaries, after the Effective Date. References to the financial position and results of operations of the "Predecessor" refer to the financial position and results of operations of Valaris plc ("Legacy Valaris"), together with its consolidated subsidiaries, on and prior to the Effective Date. References to the “Company,” “we,” “us” or “our” in this Quarterly Report are to Valaris Limited, together with its consolidated subsidiaries, when referring to periods following the Effective Date, and to Legacy Valaris, together with its consolidated subsidiaries, when referring to periods prior to and including the Effective Date.

On the Effective Date, we qualified for and applied fresh start accounting. The application of fresh start accounting resulted in a new basis of accounting, and we became a new entity for financial reporting purposes. Accordingly, our financial statements and notes after the Effective Date are not comparable to our financial statements and notes on and prior to that date. The condensed consolidated financial statements and notes have been presented with a black line division to delineate the lack of comparability between the Predecessor and Successor. Historical financial statements on or before the Effective Date are not a reliable indicator of the Company's financial condition and results of operations for any period after the adoption of fresh start accounting.
New Accounting Pronouncements

Recently adopted accounting pronouncements
Leases - In July 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments,” (“Update 2021-05”) which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if another classification (i.e. sales-type or direct financing) would trigger a day-one loss. Update 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted this update January 1, 2022 using a prospective method, with no material impact to our condensed consolidated financial statements.

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 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. Our notes receivable with ARO, from which we generate interest income on a LIBOR-based rate, are impacted by the application of this standard. As the notes bear interest on the LIBOR rate determined at the end of the preceding year, the rate governing our interest income in 2022 has already been determined. We expect to be able to modify the terms of our notes receivable 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.

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 will adopt Update 2021-08 in the period required and will apply it to any business combination completed subsequent to the adoption.
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.
v3.22.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2022
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, 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 contracts contain a lease component and we have elected to apply the practical expedient provided under Accounting Standards Codification ("ASC") 842 to not separate the lease and non-lease components and apply the revenue recognition guidance in ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." 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 amount estimated for variable consideration is only recognized as revenue to the extent that it is probable that a significant reversal will not occur during the contract term. We have applied the optional exemption afforded in ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," and have not disclosed the variable consideration related to our estimated future day rate revenues. The remaining duration of our drilling contracts based on those in place as of June 30, 2022 was between approximately 1 month and 3 years.

Contract Termination - VALARIS DS-11

In July 2021, a contract was awarded to VALARIS DS-11 for an eight-well deepwater project in the U.S. Gulf of Mexico that was expected to commence in mid-2024. The contract required the rig to be upgraded with 20,000 psi well-control equipment. In February 2022, the customer decided not to sanction and therefore withdrew from the project associated with this contract. In March 2022, the contract was novated to another customer, which was a partner on the project. No material changes to the contract resulted from the novation, including with respect to the termination provisions in the event the project did not receive final investment decision (FID). In June 2022, the customer terminated the contract awarded to VALARIS DS-11.

As a result of the contract termination, we received an early termination fee of $51.0 million which is included in revenues on our condensed consolidated statements of operations for the three and six months ended June 30, 2022. As of June 30, 2022, the $51.0 million termination fee was included in Accounts receivable, net on our Condensed Consolidated Balance Sheet and was subsequently collected in July 2022.

As of the date of the termination, we had incurred costs to upgrade the rig pursuant to the requirements of the contract. Costs incurred for capital upgrades specific to the customer requirements were considered to be impaired and as such, we recorded a pre-tax, non-cash loss on impairment in the second quarter of 2022 of $34.5 million. Additional costs were recorded for penalties and other costs incurred upon cancellation of equipment ordered. See "Note 5 - Property and Equipment" for additional information on the impairment.

Day Rate Drilling Revenue

Our drilling contracts provide for payment on a day rate basis and include a rate schedule with higher rates for periods when the drilling rig is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The day rate invoiced to the customer is determined based on the varying rates applicable to specific activities performed on an hourly or other time increment basis. Day rate consideration is allocated to the distinct hourly or other time increment to which it relates within the contract term and is generally recognized consistent with the contractual rate invoiced for the services provided during the respective period. Invoices are typically issued to our customers on a monthly basis and payment terms on customer invoices are typically 30 days.
Certain of our contracts contain performance incentives whereby we may earn a bonus based on pre-established performance criteria. Such incentives are generally based on our performance over individual monthly time periods or individual wells. Consideration related to performance bonus is generally recognized in the specific time period to which the performance criteria was attributed.

We may receive termination fees if certain drilling contracts are terminated by the customer prior to the end of the contractual term. Such compensation is recognized as revenue when our performance obligation is satisfied, the termination fee can be reasonably measured and collection is probable.

Mobilization / Demobilization Revenue

In connection with certain contracts, we receive lump-sum fees or similar compensation for the mobilization of equipment and personnel prior to the commencement of drilling services or the demobilization of equipment and personnel upon contract completion. Fees received for the mobilization or demobilization of equipment and personnel are included in Operating revenues. The costs incurred in connection with the mobilization and demobilization of equipment and personnel are included in Contract drilling expense.

Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight-line basis over the contract term. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the contract term. In some cases, demobilization fees may be contingent upon the occurrence or non-occurrence of a future event. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term.

Capital Upgrade / Contract Preparation Revenue

In connection with certain contracts, we receive lump-sum fees or similar compensation generally for requested capital upgrades to our drilling rigs or for other contract preparation work. Fees received for requested capital upgrades and other contract preparation work are recorded as a contract liability and amortized on a straight-line basis over the contract term to Operating revenues.

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 joint venture with Saudi Aramco, represent the difference between the amounts billed under the bareboat charter arrangements and lease revenues earned up to the respective period end. 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):
 June 30, 2022 December 31, 2021
Current contract assets$0.5 $0.3 
Noncurrent contract assets$0.8 $— 
Current contract liabilities (deferred revenue)$63.5 $45.8 
Noncurrent contract liabilities (deferred revenue)$13.9 $10.8 

Changes in contract assets and liabilities during the period are as follows (in millions):
 Contract AssetsContract Liabilities
Balance as of December 31, 2021$0.3 $56.6 
Revenue recognized in advance of right to bill customer4.4 — 
Increase due to cash received— 53.2 
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance— (25.5)
Decrease due to amortization of deferred revenue added during the period— (6.9)
Decrease due to transfer to receivables during the period(3.4)— 
Balance as of June 30, 2022$1.3 $77.4 

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. Demobilization costs are recognized as incurred upon contract completion. Costs associated with the mobilization of equipment and personnel to more promising market areas without contracts are expensed as incurred. Deferred contract costs were included in Other current assets and Other assets on our Condensed Consolidated Balance Sheets and totaled $73.7 million and $31.4 million as of June 30, 2022 and December 31, 2021, respectively. For the Successor, during the three and six months ended June 30, 2022 and two months ended June 30, 2021, amortization of such costs totaled $10.5 million, $22.2 million and $1.8 million, respectively. For the Predecessor, during the one month and four months ended April 30, 2021, amortization of such costs totaled $1.8 million and $7.6 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 $10.5 million and $3.3 million as of June 30, 2022 and December 31, 2021, respectively. For the Successor, during the three and six months ended June 30, 2022 and two months ended June 30, 2021, amortization of such costs totaled $0.8 million, $1.1 million and $0.1 million, respectively. For the Predecessor, during the one month and four months ended April 30, 2021, amortization of such costs totaled $0.5 million and $3.1 million, respectively.
Future Amortization of Contract Liabilities and Deferred Costs

Our contract liabilities and deferred costs are amortized on a straight-line basis over the contract term or corresponding certification period to Operating revenues and Contract drilling expense, respectively, with the exception of the contract liabilities related to our bareboat charter arrangements with ARO which would not be contractually payable until the end of the lease term or termination, if sooner. See "Note 3 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. The table below reflects the expected future amortization of our contract liabilities and deferred costs recorded as of June 30, 2022. 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 lease term.
(In millions)
 Remaining 202220232024 Total
Amortization of contract liabilities$46.9 $23.0 $7.5 $77.4 
Amortization of deferred costs$35.3 $40.9 $8.0 $84.2 
v3.22.2
Equity Method Investment In ARO Equity Method Investment In ARO
 6 Months Ended
Jun. 30, 2022
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 June 30, 2022, ARO owns seven jackup rigs, has ordered two newbuild jackup rigs, and leases seven rigs from us through bareboat charter arrangements (the "Lease Agreements") whereby substantially all operating costs are incurred by ARO. At June 30, 2022, each of the leased rigs were operating under three-year drilling contracts with Saudi Aramco. The seven rigs owned by ARO are currently operating under contracts with Saudi Aramco for an aggregate 15 years provided that the rigs meet the technical and operational requirements of Saudi Aramco.

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, each with a shipyard price of $176.0 million. These newbuild rigs are expected to be delivered in the first or second quarter of 2023 and ARO is expected to place orders for two additional newbuild jackups in 2022. In connection with these plans, we have a potential obligation to fund ARO for newbuild jackup rigs. See "Note 11 - Contingencies" for additional information.

The joint venture partners agreed in the shareholders' agreement that Saudi Aramco, as a customer, will provide drilling contracts to ARO in connection with the acquisition of the newbuild rigs. The initial contracts provided by Saudi Aramco for each of the newbuild rigs will be for an eight-year term. The day rate for the initial contracts for each newbuild rig will be determined using a pricing mechanism that targets a six-year payback period for construction costs on an EBITDA basis. The initial eight-year contracts will be followed by a minimum of another eight years of term, re-priced in three-year intervals based on a market pricing mechanism.

Summarized Financial Information

The operating revenues of ARO presented below reflect revenues earned under drilling contracts with Saudi Aramco for the seven 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. See additional discussion below regarding these related-party transactions.
Summarized financial information for ARO is as follows (in millions):
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Revenues$116.4 $124.8 $227.7 $247.5 
Operating expenses
Contract drilling (exclusive of depreciation)82.1 92.7 166.3 179.0 
Depreciation15.4 14.6 31.9 30.7 
General and administrative3.2 4.3 8.4 7.3 
Operating income15.7 13.2 21.1 30.5 
Other expense, net3.3 3.1 6.6 7.6 
Provision for income taxes2.5 1.9 3.2 6.4 
Net income$9.9 $8.2 $11.3 $16.5 

June 30,
2022		December 31, 2021
Cash and cash equivalents$293.3 $270.8 
Other current assets106.3 135.0 
Non-current assets777.5 775.8 
Total assets$1,177.1 $1,181.6 
Current liabilities$63.7 $79.9 
Non-current liabilities958.7 956.7 
Total liabilities$1,022.4 $1,036.6 

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 (losses) of ARO in our Condensed Consolidated Statements of Operations. ARO is a variable interest entity; however, we are not the primary beneficiary and therefore do not consolidate ARO. Judgments regarding our level of influence over ARO included considering key factors such as each partner's ownership interest, representation on the board of managers of ARO and ability to direct activities that most significantly impact ARO's economic performance, including the ability to influence policy-making decisions. Our investment in ARO would be assessed for impairment if there are changes in facts and circumstances that indicate a loss in value may have occurred. If a loss were deemed to have occurred and this loss was determined to be other than temporary, the carrying value of our investment would be written down to fair value and an impairment recorded.

We have an equity method investment in ARO that was recorded at its estimated fair value at both the Effective Date and the date of our combination with our joint venture partner. 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 (losses) of ARO in our Condensed Consolidated Statements of Operations. The amortization of those basis differences are combined with our 50% interest in ARO's net income. A reconciliation of those components is presented below (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
50% interest in ARO net income$5.0 $2.3 $1.9 
Amortization of basis differences3.7 2.5 (0.7)
Equity in earnings of ARO$8.7 $4.8 $1.2 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
50% interest in ARO net income$5.7 $2.3 $6.0 
Amortization of basis differences7.3 2.5 (2.9)
Equity in earnings of ARO$13.0 $4.8 $3.1 

Related-Party Transactions

Revenues recognized by us related to the Lease Agreements are as follows (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Lease revenue $14.6 $10.3 $5.1 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Lease revenue $28.8 $10.3 $21.7 

Amounts receivable from ARO totaled $6.4 million and $12.1 million as of June 30, 2022 and December 31, 2021, respectively, and are included in Accounts receivable, net, on our Condensed Consolidated Balance Sheets.

We had $15.8 million and $37.1 million of Contract liabilities and Accounts payable, respectively, related to the Lease Agreements as of June 30, 2022. As of December 31, 2021, we had $10.8 million and $38.3 million of Contract liabilities and Accounts payable, respectively, related to the Lease Agreements. 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 ten-year shareholder notes receivable with interest based on a one-year LIBOR rate, set as of the end of the year prior to the year applicable, plus two percent. The notes receivable were adjusted to fair value as of the Effective Date by recording a discount to the principal amount of $442.7 million. The discount is being amortized using the effective interest method to interest income over the remaining terms of the notes. As of June 30, 2022 and December 31, 2021, the carrying amount of the long-term notes receivable from ARO was $264.5 million and $249.1 million, respectively. The agreement entered into by us and Saudi Aramco to create ARO prohibits the sale or transfer of the shareholder note to a third party, except in certain limited circumstances. During the three months ended June 30, 2022 (Successor), interest income totaled $10.7 million of which $7.7 million pertains to non-cash amortization of the discount on the shareholder notes. During the six months ended June 30, 2022 (Successor), interest income totaled $21.2 million of which $15.4 million pertains to non-cash amortization of the discount on the shareholder notes. For the Successor, during the two months ended June 30, 2021, interest income totaled $7.7 million of which $6.0 million pertains to non-cash amortization of the discount on the shareholder notes. For the Predecessor, the one month and four months ended April 30, 2021, interest income totaled $0.9 million and $3.5 million, respectively. As of June 30, 2022, our interest receivable from ARO was $5.8 million, which is included in Accounts receivable, net, on our Condensed Consolidated Balance Sheet. We collected our 2021 interest on our long-term notes receivable from ARO in cash prior to December 31, 2021 and as such there was no interest receivable from ARO as of December 31, 2021.

Maximum Exposure to Loss

The following table summarizes the total assets and liabilities as reflected in our Condensed Consolidated Balance Sheets as well as our maximum exposure to loss related to ARO (in millions). Our maximum exposure to loss is limited to (1) our equity investment in ARO; (2) the carrying amount of our shareholder notes receivable; and (3) other receivables and contract assets from ARO, partially offset by contract liabilities as well as payables to ARO.
June 30, 2022December 31, 2021
Total assets$377.2 $348.1 
Less: total liabilities52.9 49.1 
Maximum exposure to loss$324.3 $299.0 
v3.22.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying values and estimated fair values of our long-term debt instrument were as follows (in millions):
June 30,
2022		December 31,
2021
Carrying Value  Estimated Fair Value  Carrying Value  Estimated Fair Value  
Senior secured first lien notes due 2028$545.7 $534.6 $545.3 $575.7 

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

As of June 30, 2022, the estimated fair value of our notes receivable from ARO was $293.1 million and was estimated by using an income approach to value the forecasted cash flows attributed to the notes receivable using a discount rate based on comparable yield with a country-specific risk premium.

The estimated fair values of our cash and cash equivalents, restricted cash, accounts receivable and trade payables approximated their carrying values as of June 30, 2022 and December 31, 2021.
v3.22.2
Property and Equipment
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
    Property and equipment consisted of the following (in millions):
June 30,
2022		December 31, 2021
Drilling rigs and equipment$973.7 $886.9 
Work-in-progress30.5 35.6 
Other38.4 34.5 
$1,042.6 $957.0 

Assets held-for-use

On a quarterly basis, we evaluate the carrying value of our property and equipment to identify events or changes in circumstances ("triggering events") that indicate the carrying value may not be recoverable. For rigs whose carrying values are determined not to be recoverable, we record an impairment for the difference between their fair values and carrying values.

Successor

In June 2022, the drilling contract previously awarded to VALARIS DS-11 was terminated. As of the date of termination, we had incurred costs to upgrade the rig pursuant to the requirements of the contract. Costs incurred related to these capital upgrades were included in work-in-progress and upon termination were determined to be impaired. We recorded a pre-tax, non-cash loss on impairment in the second quarter of 2022 of $34.5 million. See "Note 2 - Revenue from Contracts with Customers" for additional information regarding the termination.

Predecessor

During the first quarter of 2021, as a result of challenging market conditions for certain of our floaters, we revised our near-term operating assumptions which resulted in a triggering event for purposes of evaluating impairment. We determined that the estimated undiscounted cash flows were not sufficient to recover the carrying values for certain rigs and concluded they were impaired as of March 31, 2021.

Based on the asset impairment analysis performed as of March 31, 2021, we recorded a pre-tax, non-cash loss on impairment in the first quarter of 2021 for certain floaters totaling $756.5 million, inclusive of $5.6 million of gains reclassified from accumulated other comprehensive income into loss on impairment associated with related cash flow hedges. We measured the fair value of these assets to be $26.0 million at the time of impairment by applying either an income approach, using projected discounted cash flows or estimated sales price. These valuations were based on unobservable inputs that require significant judgments for which there is limited information, including, in the case of an income approach, assumptions regarding future day rates, utilization, operating costs and capital requirements. In instances where we applied an income approach, forecasted day rates and utilization took into account then current market conditions and our anticipated business outlook.
Assets held-for-sale and Assets sold

Our business strategy has been to focus on ultra-deepwater floater and premium jackup operations and de-emphasize other assets and operations that are not part of our long-term strategic plan or that no longer meet our standards for economic returns. We continue to focus on our fleet management strategy in light of the composition of our rig fleet. While taking into account certain restrictions on the sales of assets under our Indenture dated April 30, 2021 that governs our First Lien Notes (the “Indenture”), as part of our strategy, we may act opportunistically from time to time to monetize assets to enhance stakeholder value and improve our liquidity profile, in addition to reducing holding costs by selling or disposing of lower-specification or non-core rigs. To this end, we continually assess our rig portfolio and actively work with rig brokers to market certain rigs. See “Note 8 – Debt" for additional information on restrictions on the sales of assets.

On a quarterly basis, we assess whether any long-lived assets meets the criteria established for held-for-sale classification on our balance sheet. Assets classified as held-for-sale are recorded at fair value, less costs to sell. We measure the fair value of our assets held-for-sale by applying a market approach based on unobservable third-party estimated prices that would be received in exchange for the assets in an orderly transaction between market participants or a negotiated sales price. We reassess the fair value of our held-for-sale assets on a quarterly basis and adjust the carrying value, as necessary. No assets were considered as held-for-sale on our Condensed Consolidated Balance Sheets as of June 30, 2022, or December 31, 2021.

Successor

In April 2022, VALARIS 113 and VALARIS 114 were sold resulting in a combined pre-tax gain on sale of $120.0 million, and in May 2022, VALARIS 36 was sold resulting in a pre-tax gain on sale of $8.5 million. Also in May 2022, we received additional proceeds of $7.0 million on our 2020 sale of VALARIS 68 resulting from post-sale conditions of that sale agreement. These incremental proceeds were recorded as a pre-tax gain on sale. Gains on sales are included in Other, net on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022.

VALARIS 67 was sold in March 2022, resulting in a pre-tax gain of $2.0 million, which is included in Other, net on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2022 (Successor).

Predecessor

VALARIS 101 was sold in April 2021, resulting in a pre-tax gain of $5.3 million, which is included in Other, net on the Condensed Consolidated Statements of Operations for the one month and four months ended April 30, 2021 (Predecessor).

Our Australia office building was sold in March 2021, resulting in an immaterial pre-tax gain, which is included in Other, net on the Condensed Consolidated Statements of Operations for the four months ended April 30, 2021 (Predecessor).
v3.22.2
Pension and Other Postretirement Benefits
 6 Months Ended
Jun. 30, 2022
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 cost were as follows (in millions):
SuccessorPredecessor
 Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Interest cost$5.6 $3.8 $1.6 
Expected return on plan assets(9.6)(6.2)(3.0)
Amortization of net gain(0.1)— — 
Net periodic pension and retiree medical income (1)
$(4.1)$(2.4)$(1.4)

SuccessorPredecessor
 Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Interest cost$11.1 $3.8 $6.6 
Expected return on plan assets(19.1)(6.2)(12.1)
Amortization of net (gain) loss(0.1)— 0.1 
Net periodic pension and retiree medical income (1)
$(8.1)$(2.4)$(5.4)

(1)Included in Other, net, in our Condensed Consolidated Statements of Operations.
In March 2021, the American Rescue Plan Act of 2021 ("ARPA-21") was passed. ARPA-21 provides funding relief for U.S. qualified pension plans which should lower pension contribution requirements over the next few years. During the six months ended June 30, 2022 (Successor), we contributed or directly paid $2.7 million to our pension and other post-retirement benefit plans. We currently expect to contribute or directly pay approximately $2.3 million to our pension and other post-retirement benefits plans for the remainder of 2022. These amounts represent the minimum contributions we are required to make under relevant statutes. We do not expect to make contributions in excess of the minimum required amounts.
v3.22.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share Earnings 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. Basic and diluted earnings per share ("EPS") for the Predecessor was calculated in accordance with the two-class method. Predecessor net loss attributable to Legacy Valaris used in our computations of basic and diluted EPS was adjusted to exclude net income allocated to non-vested shares granted to our employees and non-employee directors. Weighted-average shares outstanding used in our computation of diluted EPS is calculated using the treasury stock method and for the Successor includes the effect of all potentially dilutive stock equivalents, including warrants, restricted stock unit awards and performance stock unit awards and for the Predecessor would include the effect of all potentially dilutive stock options and excludes non-vested shares.

For the Successor, during the three and six months ended June 30, 2022, income from continuing operations attributable to our shares was $111.6 million and $73.0 million, respectively.

For the Successor, during the two months ended June 30, 2021, loss from continuing operations attributable to our shares was $6.2 million.
For the Predecessor, during the one month and four months ended April 30, 2021, loss from continuing operations attributable to Legacy Valaris and Legacy Valaris shares was $3.6 billion and $4.5 billion, respectively. No amounts were allocated to non-vested share awards in these periods given that losses are not allocated to non-vested share awards.

The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the three and six months ended June 30, 2022 (Successor), two months ended June 30, 2021 (Successor), and one and four months ended April 30, 2021 (Predecessor) (in millions):

SuccessorPredecessor
 Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Weighted average shares outstanding:
Basic75.0 75.0 199.7 
Effect of stock equivalents0.6 — — 
Diluted75.6 75.0 199.7 

SuccessorPredecessor
 Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Month Ended April 30, 2021
Weighted average shares outstanding:
Basic75.0 75.0 199.6 
Effect of stock equivalents0.5 — — 
Diluted75.5 75.0 199.6 


Anti-dilutive share awards totaling 13,000 and 6,000 were excluded from the computation of diluted EPS for the three and six months ended June 30, 2022, respectively.

Due to the net loss position of the Successor during the two months ended June 30, 2021, our potentially dilutive instruments were not included in the computation of diluted EPS as the effect of including these shares in the calculation would have been anti-dilutive. For the Successor, during the two months ended June 30, 2021, there were 29,000 anti-dilutive shares.

Due to the net loss position of the Predecessor, during the one month and four months ended April 30, 2021, our potentially dilutive instruments were not included in the computation of diluted EPS as the effect of including these shares in the calculation would have been anti-dilutive. For the Predecessor, during the one month and four months ended April 30, 2021, anti-dilutive share awards totaling 300,000 were excluded from the computation of diluted EPS.

We have 5,470,971 warrants outstanding (the "Warrants") as of June 30, 2022 to purchase common shares of Valaris Limited which are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant, in each case as may be adjusted from time to time pursuant to the applicable warrant agreement. The Warrants are exercisable for a period of seven years and will 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 for the Successor.
v3.22.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt Debt
First Lien Notes Indenture

On the Effective Date, 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.

The First Lien Notes were issued pursuant to the Indenture, among Valaris Limited, certain direct and indirect subsidiaries of Valaris Limited as guarantors, and Wilmington Savings Fund Society, FSB, as collateral agent and trustee (in such capacities, the “Collateral Agent”).

The First Lien Notes are guaranteed, jointly and severally, on a senior basis, by certain of the direct and indirect subsidiaries of the Company. The First Lien Notes and such guarantees are secured by first-priority perfected liens on 100% of the equity interests of each restricted subsidiary directly owned by the Company or any guarantor and a first-priority perfected lien on substantially all assets of the Company and each guarantor of the First Lien Notes, in each case subject to certain exceptions and limitations. The following is a brief description of the material provisions of the Indenture and the First Lien Notes.

The First Lien Notes are scheduled to mature on April 30, 2028. Interest on the First Lien Notes accrues, at our option, at a rate of: (i) 8.25% per annum, payable in cash; (ii) 10.25% per annum, with 50% of such interest to be payable in cash and 50% of such interest to be paid in kind; or (iii) 12% per annum, with the entirety of such interest to be paid in kind. Interest is due semi-annually in arrears on May 1 and November 1 of each year and shall be computed on the basis of a 360-day year of twelve 30-day months.

At any time prior to April 30, 2023, the Company may redeem up to 35% of the aggregate principal amount of the First Lien Notes at a redemption price of 104% up to the net cash proceeds received by the Company from equity offerings provided that at least 65% of the aggregate principal amount of the First Lien Notes remains outstanding and provided that the redemption occurs within 120 days after such equity offering of the Company. At any time prior to April 30, 2023, the Company may redeem the First Lien Notes at a redemption price of 104% plus a “make-whole” premium. On or after April 30, 2023, the Company may redeem all or part of the First Lien Notes at fixed redemption prices (expressed as percentages of the principal amount), plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may also redeem the First Lien Notes, in whole or in part, at any time and from time to time on or after April 30, 2026 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Notwithstanding the foregoing, if a Change of Control (as defined in the Indenture, with certain exclusions as provided therein) occurs, the Company will be required to make an offer to repurchase all or any part of each note holder’s notes at a purchase price equal to 101% of the aggregate principal amount of First Lien Notes repurchased, plus accrued and unpaid interest to, but excluding, the applicable date.

The Indenture contains covenants that limit, among other things, the Company’s ability and the ability of the guarantors and other restricted subsidiaries, to: (i) incur, assume or guarantee additional indebtedness; (ii) pay dividends or distributions on equity interests or redeem or repurchase equity interests; (iii) make investments; (iv) repay or redeem junior debt; (v) transfer or sell assets; (vi) enter into sale and lease back transactions; (vii) create, incur or assume liens; and (viii) enter into transactions with certain affiliates. These covenants are subject to a number of important limitations and exceptions.

The Indenture also provides for certain customary events of default, including, among other things, nonpayment of principal or interest, breach of covenants, failure to pay final judgments in excess of a specified threshold, failure of a guarantee to remain in effect, failure of a collateral document to create an effective security interest in collateral, with a fair market value in excess of a specified threshold, bankruptcy and insolvency events, cross payment default and cross acceleration, which could permit the principal, premium, if any, interest and other monetary obligations on all the then outstanding First Lien Notes to be declared due and payable immediately.
The Company incurred $5.2 million in issuance costs in association with the First Lien Notes that are being amortized into interest expense over the expected life of the notes using the effective interest method.
v3.22.2
Shareholders Equity (Notes)
 6 Months Ended
Jun. 30, 2022
Shareholders' Equity [Abstract]  
Shareholders' Equity and Share-based Payments [Text Block] Shareholders' Equity
    Activity in our various shareholders' equity accounts for the three and six months ended June 30, 2022 (Successor), the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor) were as follows (in millions):

 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Earnings (Deficit)		AOCI Treasury
Shares		Non-controlling
Interest
BALANCE, December 31, 2021 (Successor)75.0 $0.8 $1,083.0 $16.4 $(33.0)$(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, 2022 (Successor)75.0 $0.8 $1,086.4 $16.4 $(71.6)$(9.4)$— $1.5 
Net income— — — — 111.6 — — 1.2 
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit— — — — — (0.1)— — 
Share-based compensation cost— — 3.5 — — — — — 
Shares withheld for taxes on vesting of share-based awards— — — — — — (0.2)— 
Net other comprehensive income— — — — — 0.3 — — 
BALANCE, June 30, 2022 (Successor)75.0 $0.8 $1,089.9 $16.4 $40.0 $(9.2)$(0.2)$2.7 
 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Earnings (Deficit)		AOCI Treasury
Shares		Non-controlling
Interest
BALANCE, December 31, 2020 (Predecessor)206.1 $82.6 $8,639.9 $— $(4,183.8)$(87.9)$(76.2)$(4.3)
Net loss— — — — (910.0)— — 2.4 
Shares issued under share-based compensation plans, net— — (0.2)— — — 0.2 — 
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit— — — — — 0.1 — — 
Share-based compensation cost— — 3.8 — — — — — 
Net other comprehensive loss— — — — — (5.4)— — 
BALANCE, March 31, 2021 (Predecessor)206.1 $82.6 $8,643.5 $— $(5,093.8)$(93.2)$(76.0)$(1.9)
Net loss— — — — (3,557.0)— — 0.8 
Shares issued under share-based compensation plans, net— — (0.5)— — — 0.5 — 
Share-based compensation cost— — 1.0 — — — — — 
Net other comprehensive loss— — — — — (0.2)— — 
Cancellation of Predecessor equity(206.1)(82.6)(8,644.0)— 8,650.8 93.4 75.5 — 
Issuance of Successor Common Shares and Warrants75.0 0.8 1,078.7 16.4 — — — — 
BALANCE, April 30, 2021 (Predecessor)75.0 $0.8 $1,078.7 $16.4 $— $— $— $(1.1)
BALANCE, May 1, 2021 (Successor)75.0 $0.8 $1,078.7 $16.4 $— $— $— $(1.1)
Net loss— — — — (6.2)— — 2.1 
Net other comprehensive loss— — — — — (0.2)— — 
BALANCE, June 30, 2021 (Successor)75.0 $0.8 $1,078.7 $16.4 $(6.2)$(0.2)$— $1.0 
v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]  
Income Taxes Income Taxes
 
Valaris Limited is domiciled and resident in Bermuda. Our subsidiaries conduct operations and earn income in numerous countries and are subject to the laws of taxing jurisdictions within those countries. The income of our non-Bermuda subsidiaries is not subject to Bermuda taxation as there is not an income tax regime in Bermuda. Legacy Valaris was domiciled and resident in the U.K. The income of our non-U.K. subsidiaries was generally not subject to U.K. taxation.
Income tax rates and taxation systems in the jurisdictions in which our subsidiaries conduct operations vary and our subsidiaries are frequently subjected to minimum taxation regimes. In some jurisdictions, tax liabilities are based on gross revenues, statutory deemed profits or other factors, rather than on net income, and our subsidiaries are frequently unable to realize tax benefits when they operate at a loss. Accordingly, during periods of declining profitability, our income tax expense may not decline proportionally with income, which could result in higher effective income tax rates. Furthermore, we will continue to incur income tax expense in periods in which we operate at a loss.
    
Our drilling rigs frequently move from one taxing jurisdiction to another to perform contract drilling services. In some instances, the movement of drilling rigs among taxing jurisdictions will involve the transfer of ownership of the drilling rigs among our subsidiaries. As a result of frequent changes in the taxing jurisdictions in which our drilling rigs are operated and/or owned, changes in profitability levels and changes in tax laws, our annual effective income tax rate may vary substantially from one reporting period to another.

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 and six months ended June 30, 2022 (Successor), the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor). We used a discrete effective tax rate method to calculate income taxes for the three and six months ended June 30, 2022 (Successor), the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor). 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 expense for the three months ended June 30, 2022 (Successor) was $6.2 million and was primarily attributable to income associated with a contract termination. Discrete income tax benefit for the six months ended June 30, 2022 (Successor) was $8.3 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years, partially offset by discrete tax expense attributable to income associated with a contract termination. Excluding the aforementioned discrete tax items, income tax expense for the three and six months ended June 30, 2022 (Successor) was $14.0 million and $27.8 million, respectively.

Discrete income tax expense for the two months ended June 30, 2021 (Successor) was $5.6 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years and resolution of other prior period tax matters. Discrete income tax benefit for the one month ended April 30, 2021 (Predecessor) was $18.1 million and was primarily attributable to fresh start accounting adjustments. Discrete income tax expense for the four months ended April 30, 2021 (Predecessor) was $2.2 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years and resolution of other prior period tax matters offset by discrete tax benefit related to fresh start accounting adjustments. Excluding the aforementioned discrete tax items, income tax expense for the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor) was $9.5 million, $2.6 million and $14.0 million, respectively.
v3.22.2
Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
Indonesian Well-Control Event

In July 2019, a well being drilled offshore Indonesia by one of our jackup rigs experienced a well-control event requiring the cessation of drilling activities. In February 2020, the rig resumed operations. Indonesian authorities initiated an investigation into the event and have contacted the customer, us and other parties involved in drilling the well for additional information. We cooperated with the Indonesian authorities. We cannot predict the scope or ultimate outcome of this investigation. If the Indonesian authorities determine that we violated local laws in connection with this matter, we could be subject to penalties including environmental or other liabilities, which may have a material adverse impact on us.

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 June 30, 2022 (Successor) totaled $136.2 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 June 30, 2022 (Successor), we had collateral deposits in the amount of $20.6 million with respect to these agreements.

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. We have increased our accrual with respect to certain matters as of June 30, 2022 by approximately $25.0 million to reflect a change in the projected value of these claims against us.
v3.22.2
Segment Information
 6 Months Ended
Jun. 30, 2022
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 and six months ended June 30, 2022 (Successor), the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor), respectively, are presented below (in millions).

Three Months Ended June 30, 2022 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$188.1 $185.8 $116.4 $39.4 $(116.4)$413.3 
Operating expenses
Contract drilling (exclusive of depreciation)165.3 142.2 82.1 24.7 (52.5)361.8 
Loss on impairment34.5 — — — — 34.5 
Depreciation12.3 8.7 15.4 1.3 (15.4)22.3 
General and administrative— — 3.2 — 15.8 19.0 
Equity in earnings of ARO— — — — 8.7 8.7 
Operating income (loss)$(24.0)$34.9 $15.7 $13.4 $(55.6)$(15.6)
Property and equipment, net$462.9 $384.8 $733.4 $50.4 $(699.8)$931.7 

Six Months Ended June 30, 2022 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$287.8 $366.5 $227.7 $77.4 $(227.7)$731.7 
Operating expenses
Contract drilling (exclusive of depreciation)312.9 281.4 166.3 40.2 (107.7)693.1 
Loss on impairment34.5 — — — — 34.5 
Depreciation24.5 17.8 31.9 2.2 (31.6)44.8 
General and administrative— — 8.4 — 29.4 37.8 
Equity in earnings of ARO— — — — 13.0 13.0 
Operating income (loss)$(84.1)$67.3 $21.1 $35.0 $(104.8)$(65.5)
Property and equipment, net$462.9 $384.8 $733.4 $50.4 $(699.8)$931.7 
Two Months Ended June 30, 2021 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$49.7 $128.5 $84.0 $24.6 $(84.0)$202.8 
Operating expenses
Contract drilling (exclusive of depreciation)45.3 95.4 62.9 9.2 (44.2)168.6 
Depreciation7.9 7.8 9.7 0.8 (9.6)16.6 
General and administrative— — 3.1 — 9.6 12.7 
Equity in earnings of ARO— — — — 4.8 4.8 
Operating income (loss)$(3.5)$25.3 $8.3 $14.6 $(35.0)$9.7 
Property and equipment, net$413.8 $396.2 $730.0 $49.8 $(692.0)$897.8 


One Month Ended April 30, 2021 (Predecessor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$18.4 $59.8 $40.8 $12.1 $(40.8)$90.3 
Operating expenses
Contract drilling (exclusive of depreciation)21.4 53.8 29.8 4.7 (19.5)90.2 
Depreciation15.9 17.3 4.9 3.5 (4.1)37.5 
General and administrative— — 1.2 — 5.2 6.4 
Equity in earnings of ARO— — — — 1.2 1.2 
Operating income (loss)$(18.9)$(11.3)$4.9 $3.9 $(21.2)$(42.6)
Property and equipment, net$419.3 $401.4 $730.7 $50.5 $(692.8)$909.1 

Four Months Ended April 30, 2021 (Predecessor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$115.7 $232.4 163.5 $49.3 $(163.5)$397.4 
Operating expenses
Contract drilling (exclusive of depreciation)106.5 175.0 116.1 19.9 (73.7)343.8 
Loss on impairment756.5 — — — — 756.5 
Depreciation72.1 69.7 21.0 14.8 (18.0)159.6 
General and administrative— — 4.2 — 26.5 30.7 
Equity in earnings of ARO— — — — 3.1 3.1 
Operating income (loss)$(819.4)$(12.3)$22.2 $14.6 $(95.2)$(890.1)
Property and equipment, net$419.3 $401.4 $730.7 $50.5 $(692.8)$909.1 
Information about Geographic Areas

    As of June 30, 2022, 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 & Africa377177
Asia & Pacific Rim24—6—
Total16297527

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.
v3.22.2
Supplemental Financial Information
 6 Months Ended
Jun. 30, 2022
Supplemental Financial Information [Abstract]  
Supplemental Financial Information Supplemental Financial Information
Condensed Consolidated Balance Sheet Information

Accounts receivable, net, consisted of the following (in millions):
June 30,
2022		December 31,
2021
Trade$391.2 $296.8 
Income tax receivable146.9 151.1 
Other23.2 12.7 
 561.3 460.6 
Allowance for doubtful accounts(16.7)(16.4)
 $544.6 $444.2 

Other current assets consisted of the following (in millions):
June 30,
2022		December 31,
2021
Deferred costs$57.9 $26.9 
Prepaid taxes47.4 44.4 
Prepaid expenses27.1 23.1 
Other26.6 23.4 
 $159.0 $117.8 
    
Other assets consisted of the following (in millions):
June 30,
2022		December 31,
2021
Tax receivables$63.0 $64.8 
Deferred tax assets52.2 59.7 
Right-of-use assets23.0 20.5 
Other45.9 31.0 
$184.1 $176.0 
    
Accrued liabilities and other consisted of the following (in millions):
June 30,
2022		December 31,
2021
Deferred revenue$63.5 $45.8 
Income and other taxes payable55.1 45.7 
Personnel costs53.2 47.3 
Accrued claims41.2 17.3 
Lease liabilities8.5 10.0 
Accrued interest7.6 7.6 
Other31.0 22.5 
 $260.1 $196.2 
        
Other liabilities consisted of the following (in millions):
June 30,
2022		December 31,
2021
Unrecognized tax benefits (inclusive of interest and penalties)$274.2 $320.2 
Pension and other post-retirement benefits194.5 204.0 
Other58.9 56.9 
 $527.6 $581.1 

Accumulated other comprehensive income (loss) consisted of the following (in millions):
June 30,
2022		December 31,
2021
Pension and other post-retirement benefits$(9.2)$(9.1)

Condensed Consolidated Statements of Operations Information

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

SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Net gain (loss) on sale of property$135.1 $(0.1)$4.6 
Net foreign currency exchange gains (losses)10.7 3.1 (3.2)
Net periodic pension income4.1 2.4 1.4 
Other income (expense)(0.2)0.2 0.6 
$149.7 $5.6 $3.4 
SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Net gain (loss) on sale of property$137.6 $(0.1)$6.0 
Net foreign currency exchange gains15.4 3.1 13.4 
Net periodic pension income8.1 2.4 5.4 
Other income (expense)(0.4)0.2 1.1 
$160.7 $5.6 $25.9 

Condensed Consolidated Statement of Cash Flows Information

Our restricted cash of $23.8 million and $35.9 million at June 30, 2022 and December 31, 2021, respectively, consists primarily of $20.6 million and $31.1 million of collateral on letters of credit for each respective period. See "Note 11 - Contingencies" for more information regarding our letters of credit.

Concentration of Risk

We are exposed to credit risk relating to our receivables from customers, our cash and cash equivalents and, at times, investments. 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. We mitigate our credit risk relating to cash and investments by focusing on diversification and quality of instruments.

Consolidated revenues with customers that individually contributed 10% or more of revenue were as follows:
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Equinor ASA ("Equinor")(1)
17 %6 %7 %
BP plc ("BP")(2)
13 %9 %11 %
Other70 %85 %82 %
100 %100 %100 %

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Equinor(1)
12 %6 %6 %
BP(2)
14 %9 %14 %
Other74 %85 %80 %
100 %100 %100 %
(1)During the three months ended June 30, 2022 (Successor), 72% of the revenues provided by Equinor were attributable to our Floaters segment and 28% of the revenues were attributable to our Jackups segment.

During the six months ended June 30, 2022 (Successor), 57% of the revenues provided by Equinor were attributable to our Floaters segment and 43% of the revenues were attributable to our Jackups segment.
During the two months ended June 30, 2021 (Successor) and one month and four months ended April 30, 2021 (Predecessor), 100% of the revenues provided by Equinor were attributable to our Jackups segment.

(2)During the three months ended June 30, 2022 (Successor), 35% of the revenues provided by BP were attributable to our Floaters segment, 19% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

During the six months ended June 30, 2022 (Successor), 39% of the revenues provided by BP were attributable to our Floaters segment, 16% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

During the two months ended June 30, 2021 (Successor), 25% of the revenues provided by BP were attributable to our Jackups segment, and the remaining were attributable to our managed rigs. During the one month and four months ended April 30, 2021 (Predecessor), 7% and 37%, respectively, of the revenues provided by BP were attributable to our Floaters segment, 28% and 17%, respectively, of the revenues were attributable to our Jackups segment, and the remaining were attributable to our managed rigs.

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 are as follows (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
U.S. Gulf of Mexico(1)
$125.8 $30.9 $17.6 
United Kingdom(2)
63.1 41.1 19.6 
Saudi Arabia(3)
35.1 25.2 12.0 
Norway(2)
28.1 40.5 19.3 
Mexico(4)
20.6 18.9 6.1 
Other140.6 46.2 15.7 
$413.3 $202.8 $90.3 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
U.S. Gulf of Mexico(1)
$176.4 $30.9 $74.4 
United Kingdom(2)
128.7 41.1 75.7 
Saudi Arabia(3)
73.2 25.2 53.6 
Norway(2)
52.4 40.5 73.3 
Mexico(4)
42.7 18.9 44.3 
Other258.3 46.2 76.1 
$731.7 $202.8 $397.4 


(1)During the three months ended June 30, 2022 (Successor), 77% and 4% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and Jackups segment, respectively. The remaining revenues were attributable to our managed rigs.
During the six months ended June 30, 2022 (Successor), 66% and 7% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and Jackups segment, respectively. The remaining revenues were primarily attributable to our managed rigs.

During the two months ended June 30, 2021 (Successor), 56% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment. During the one month and four months ended April 30, 2021 (Predecessor), 62% and 64%, respectively, of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment. The remaining revenues were attributable to our managed rigs.

(2)During the three and six months ended June 30, 2022 (Successor), two months ended June 30, 2021 (Successor) and one month and four months ended April 30, 2021 (Predecessor), revenues earned in the United Kingdom and Norway were attributable to our Jackups segment.

(3)During the three and six months ended June 30, 2022 (Successor), 57% and 59%, respectively, of the revenues earned in Saudi Arabia were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates primarily to our rigs leased to ARO.

During the two months ended June 30, 2021 (Successor), 57% of the revenues earned in Saudi Arabia were attributable to our Jackups segment. During the one month and four months ended April 30, 2021 (Predecessor), 55% and 57%, respectively, of the revenues earned in Saudi Arabia were attributable to our Jackups segment.

(4)During the three and six months ended June 30, 2022 (Successor), 84% and 89%, respectively, of the revenues earned in Mexico were attributable to our Jackups segment, and the remaining revenues were attributable to our Floaters segment.

During the two months ended June 30, 2021 (Successor), 41% and 59% of the revenues earned in Mexico were attributable to our Floaters segment and Jackups segment, respectively. During the one month and four months ended April 30, 2021 (Predecessor), 4% and 49%, respectively, of the revenues earned in Mexico were attributable to our Floaters segment, and 96% and 51%, respectively, of the revenues earned in Mexico were attributable to our Jackups segment.
v3.22.2
Unaudited Condensed Consolidated Financial Statements (Policies)
 6 Months Ended
Jun. 30, 2022
Unaudited Condensed Consolidated 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 ("Valaris" or "Successor") 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, 2021 Condensed Consolidated Balance Sheet data was derived from our 2021 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 and six months ended June 30, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022, 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, 2021, filed with the SEC on February 22, 2022 (our "Annual Report").
New Accounting Pronouncements
New Accounting Pronouncements

Recently adopted accounting pronouncements
Leases - In July 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments,” (“Update 2021-05”) which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if another classification (i.e. sales-type or direct financing) would trigger a day-one loss. Update 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted this update January 1, 2022 using a prospective method, with no material impact to our condensed consolidated financial statements.

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 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. Our notes receivable with ARO, from which we generate interest income on a LIBOR-based rate, are impacted by the application of this standard. As the notes bear interest on the LIBOR rate determined at the end of the preceding year, the rate governing our interest income in 2022 has already been determined. We expect to be able to modify the terms of our notes receivable 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.

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 will adopt Update 2021-08 in the period required and will apply it to any business combination completed subsequent to the adoption.
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.
v3.22.2
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2022
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):
 June 30, 2022 December 31, 2021
Current contract assets$0.5 $0.3 
Noncurrent contract assets$0.8 $— 
Current contract liabilities (deferred revenue)$63.5 $45.8 
Noncurrent contract liabilities (deferred revenue)$13.9 $10.8 

Changes in contract assets and liabilities during the period are as follows (in millions):
 Contract AssetsContract Liabilities
Balance as of December 31, 2021$0.3 $56.6 
Revenue recognized in advance of right to bill customer4.4 — 
Increase due to cash received— 53.2 
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance— (25.5)
Decrease due to amortization of deferred revenue added during the period— (6.9)
Decrease due to transfer to receivables during the period(3.4)— 
Balance as of June 30, 2022$1.3 $77.4 
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 June 30, 2022. 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 lease term.
(In millions)
 Remaining 202220232024 Total
Amortization of contract liabilities$46.9 $23.0 $7.5 $77.4 
Amortization of deferred costs$35.3 $40.9 $8.0 $84.2 
v3.22.2
Equity Method Investment In ARO (Tables)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]    
Equity Method Investments A reconciliation of those components is presented below (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
50% interest in ARO net income$5.0 $2.3 $1.9 
Amortization of basis differences3.7 2.5 (0.7)
Equity in earnings of ARO$8.7 $4.8 $1.2 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
50% interest in ARO net income$5.7 $2.3 $6.0 
Amortization of basis differences7.3 2.5 (2.9)
Equity in earnings of ARO$13.0 $4.8 $3.1 
Summarized financial information for ARO is as follows (in millions):
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Revenues$116.4 $124.8 $227.7 $247.5 
Operating expenses
Contract drilling (exclusive of depreciation)82.1 92.7 166.3 179.0 
Depreciation15.4 14.6 31.9 30.7 
General and administrative3.2 4.3 8.4 7.3 
Operating income15.7 13.2 21.1 30.5 
Other expense, net3.3 3.1 6.6 7.6 
Provision for income taxes2.5 1.9 3.2 6.4 
Net income$9.9 $8.2 $11.3 $16.5 

June 30,
2022		December 31, 2021
Cash and cash equivalents$293.3 $270.8 
Other current assets106.3 135.0 
Non-current assets777.5 775.8 
Total assets$1,177.1 $1,181.6 
Current liabilities$63.7 $79.9 
Non-current liabilities958.7 956.7 
Total liabilities$1,022.4 $1,036.6 
The following table summarizes the total assets and liabilities as reflected in our Condensed Consolidated Balance Sheets as well as our maximum exposure to loss related to ARO (in millions). Our maximum exposure to loss is limited to (1) our equity investment in ARO; (2) the carrying amount of our shareholder notes receivable; and (3) other receivables and contract assets from ARO, partially offset by contract liabilities as well as payables to ARO.
June 30, 2022December 31, 2021
Total assets$377.2 $348.1 
Less: total liabilities52.9 49.1 
Maximum exposure to loss$324.3 $299.0 
Schedule of Related Party Transactions  
Revenues recognized by us related to the Lease Agreements are as follows (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Lease revenue $14.6 $10.3 $5.1 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Lease revenue $28.8 $10.3 $21.7 
v3.22.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments
The carrying values and estimated fair values of our long-term debt instrument were as follows (in millions):
June 30,
2022		December 31,
2021
Carrying Value  Estimated Fair Value  Carrying Value  Estimated Fair Value  
Senior secured first lien notes due 2028$545.7 $534.6 $545.3 $575.7 
v3.22.2
Property and Equipment (Tables)
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property And Equipment Property and equipment consisted of the following (in millions):
June 30,
2022		December 31, 2021
Drilling rigs and equipment$973.7 $886.9 
Work-in-progress30.5 35.6 
Other38.4 34.5 
$1,042.6 $957.0 
v3.22.2
Pension and Other Postretirement Benefits (Tables)
 6 Months Ended
Jun. 30, 2022
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs [Table Text Block] The components of net periodic pension and retiree medical cost were as follows (in millions):
SuccessorPredecessor
 Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Interest cost$5.6 $3.8 $1.6 
Expected return on plan assets(9.6)(6.2)(3.0)
Amortization of net gain(0.1)— — 
Net periodic pension and retiree medical income (1)
$(4.1)$(2.4)$(1.4)

SuccessorPredecessor
 Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Interest cost$11.1 $3.8 $6.6 
Expected return on plan assets(19.1)(6.2)(12.1)
Amortization of net (gain) loss(0.1)— 0.1 
Net periodic pension and retiree medical income (1)
$(8.1)$(2.4)$(5.4)

(1)Included in Other, net, in our Condensed Consolidated Statements of Operations.
v3.22.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2022
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 and six months ended June 30, 2022 (Successor), two months ended June 30, 2021 (Successor), and one and four months ended April 30, 2021 (Predecessor) (in millions):

SuccessorPredecessor
 Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Weighted average shares outstanding:
Basic75.0 75.0 199.7 
Effect of stock equivalents0.6 — — 
Diluted75.6 75.0 199.7 

SuccessorPredecessor
 Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Month Ended April 30, 2021
Weighted average shares outstanding:
Basic75.0 75.0 199.6 
Effect of stock equivalents0.5 — — 
Diluted75.5 75.0 199.6 
v3.22.2
Shareholders Equity (Tables)
 6 Months Ended
Jun. 30, 2022
Shareholders' Equity [Abstract]  
Schedule Of Activity In Our Various Shareholders Equity [Table Text Block] Activity in our various shareholders' equity accounts for the three and six months ended June 30, 2022 (Successor), the two months ended June 30, 2021 (Successor), and the one month and four months ended April 30, 2021 (Predecessor) were as follows (in millions):
 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Earnings (Deficit)		AOCI Treasury
Shares		Non-controlling
Interest
BALANCE, December 31, 2021 (Successor)75.0 $0.8 $1,083.0 $16.4 $(33.0)$(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, 2022 (Successor)75.0 $0.8 $1,086.4 $16.4 $(71.6)$(9.4)$— $1.5 
Net income— — — — 111.6 — — 1.2 
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit— — — — — (0.1)— — 
Share-based compensation cost— — 3.5 — — — — — 
Shares withheld for taxes on vesting of share-based awards— — — — — — (0.2)— 
Net other comprehensive income— — — — — 0.3 — — 
BALANCE, June 30, 2022 (Successor)75.0 $0.8 $1,089.9 $16.4 $40.0 $(9.2)$(0.2)$2.7 
 Shares Par ValueAdditional
Paid-in
Capital		WarrantsRetained
Earnings (Deficit)		AOCI Treasury
Shares		Non-controlling
Interest
BALANCE, December 31, 2020 (Predecessor)206.1 $82.6 $8,639.9 $— $(4,183.8)$(87.9)$(76.2)$(4.3)
Net loss— — — — (910.0)— — 2.4 
Shares issued under share-based compensation plans, net— — (0.2)— — — 0.2 — 
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit— — — — — 0.1 — — 
Share-based compensation cost— — 3.8 — — — — — 
Net other comprehensive loss— — — — — (5.4)— — 
BALANCE, March 31, 2021 (Predecessor)206.1 $82.6 $8,643.5 $— $(5,093.8)$(93.2)$(76.0)$(1.9)
Net loss— — — — (3,557.0)— — 0.8 
Shares issued under share-based compensation plans, net— — (0.5)— — — 0.5 — 
Share-based compensation cost— — 1.0 — — — — — 
Net other comprehensive loss— — — — — (0.2)— — 
Cancellation of Predecessor equity(206.1)(82.6)(8,644.0)— 8,650.8 93.4 75.5 — 
Issuance of Successor Common Shares and Warrants75.0 0.8 1,078.7 16.4 — — — — 
BALANCE, April 30, 2021 (Predecessor)75.0 $0.8 $1,078.7 $16.4 $— $— $— $(1.1)
BALANCE, May 1, 2021 (Successor)75.0 $0.8 $1,078.7 $16.4 $— $— $— $(1.1)
Net loss— — — — (6.2)— — 2.1 
Net other comprehensive loss— — — — — (0.2)— — 
BALANCE, June 30, 2021 (Successor)75.0 $0.8 $1,078.7 $16.4 $(6.2)$(0.2)$— $1.0 
v3.22.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Schedule Of Segment Reporting Information
Three Months Ended June 30, 2022 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$188.1 $185.8 $116.4 $39.4 $(116.4)$413.3 
Operating expenses
Contract drilling (exclusive of depreciation)165.3 142.2 82.1 24.7 (52.5)361.8 
Loss on impairment34.5 — — — — 34.5 
Depreciation12.3 8.7 15.4 1.3 (15.4)22.3 
General and administrative— — 3.2 — 15.8 19.0 
Equity in earnings of ARO— — — — 8.7 8.7 
Operating income (loss)$(24.0)$34.9 $15.7 $13.4 $(55.6)$(15.6)
Property and equipment, net$462.9 $384.8 $733.4 $50.4 $(699.8)$931.7 

Six Months Ended June 30, 2022 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$287.8 $366.5 $227.7 $77.4 $(227.7)$731.7 
Operating expenses
Contract drilling (exclusive of depreciation)312.9 281.4 166.3 40.2 (107.7)693.1 
Loss on impairment34.5 — — — — 34.5 
Depreciation24.5 17.8 31.9 2.2 (31.6)44.8 
General and administrative— — 8.4 — 29.4 37.8 
Equity in earnings of ARO— — — — 13.0 13.0 
Operating income (loss)$(84.1)$67.3 $21.1 $35.0 $(104.8)$(65.5)
Property and equipment, net$462.9 $384.8 $733.4 $50.4 $(699.8)$931.7 
Two Months Ended June 30, 2021 (Successor)
FloatersJackupsAROOtherReconciling ItemsConsolidated Total
Revenues$49.7 $128.5 $84.0 $24.6 $(84.0)$202.8 
Operating expenses
Contract drilling (exclusive of depreciation)45.3 95.4 62.9 9.2 (44.2)168.6 
Depreciation7.9 7.8 9.7 0.8 (9.6)16.6 
General and administrative— — 3.1 — 9.6 12.7 
Equity in earnings of ARO— — — — 4.8 4.8 
Operating income (loss)$(3.5)$25.3 $8.3 $14.6 $(35.0)$9.7 
Property and equipment, net$413.8 $396.2 $730.0 $49.8 $(692.0)$897.8 
Schedule Of Geographic Distribution Of Rigs By Segment As of June 30, 2022, 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 & Africa377177
Asia & Pacific Rim24—6—
Total16297527
v3.22.2
Supplemental Financial Information (Tables)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Supplemental Financial Information [Abstract]    
Accounts Receivable, Net  
Accounts receivable, net, consisted of the following (in millions):
June 30,
2022		December 31,
2021
Trade$391.2 $296.8 
Income tax receivable146.9 151.1 
Other23.2 12.7 
 561.3 460.6 
Allowance for doubtful accounts(16.7)(16.4)
 $544.6 $444.2 
Other Current Assets  
Other current assets consisted of the following (in millions):
June 30,
2022		December 31,
2021
Deferred costs$57.9 $26.9 
Prepaid taxes47.4 44.4 
Prepaid expenses27.1 23.1 
Other26.6 23.4 
 $159.0 $117.8 
Other Assets, Net  
Other assets consisted of the following (in millions):
June 30,
2022		December 31,
2021
Tax receivables$63.0 $64.8 
Deferred tax assets52.2 59.7 
Right-of-use assets23.0 20.5 
Other45.9 31.0 
$184.1 $176.0 
Schedule of Accrued Liabilities  
Accrued liabilities and other consisted of the following (in millions):
June 30,
2022		December 31,
2021
Deferred revenue$63.5 $45.8 
Income and other taxes payable55.1 45.7 
Personnel costs53.2 47.3 
Accrued claims41.2 17.3 
Lease liabilities8.5 10.0 
Accrued interest7.6 7.6 
Other31.0 22.5 
 $260.1 $196.2 
Other Liabilities  
Other liabilities consisted of the following (in millions):
June 30,
2022		December 31,
2021
Unrecognized tax benefits (inclusive of interest and penalties)$274.2 $320.2 
Pension and other post-retirement benefits194.5 204.0 
Other58.9 56.9 
 $527.6 $581.1 
Accumulated other comprehensive income  
Accumulated other comprehensive income (loss) consisted of the following (in millions):
June 30,
2022		December 31,
2021
Pension and other post-retirement benefits$(9.2)$(9.1)
Schedule of Other Nonoperating Income, by Component
Other, net consisted of the following (in millions):

SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Net gain (loss) on sale of property$135.1 $(0.1)$4.6 
Net foreign currency exchange gains (losses)10.7 3.1 (3.2)
Net periodic pension income4.1 2.4 1.4 
Other income (expense)(0.2)0.2 0.6 
$149.7 $5.6 $3.4 
SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Net gain (loss) on sale of property$137.6 $(0.1)$6.0 
Net foreign currency exchange gains15.4 3.1 13.4 
Net periodic pension income8.1 2.4 5.4 
Other income (expense)(0.4)0.2 1.1 
$160.7 $5.6 $25.9 
  
Schedule of Revenue by Major Customers by Reporting Segments  
Consolidated revenues with customers that individually contributed 10% or more of revenue were as follows:
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
Equinor ASA ("Equinor")(1)
17 %6 %7 %
BP plc ("BP")(2)
13 %9 %11 %
Other70 %85 %82 %
100 %100 %100 %

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
Equinor(1)
12 %6 %6 %
BP(2)
14 %9 %14 %
Other74 %85 %80 %
100 %100 %100 %
(1)During the three months ended June 30, 2022 (Successor), 72% of the revenues provided by Equinor were attributable to our Floaters segment and 28% of the revenues were attributable to our Jackups segment.

During the six months ended June 30, 2022 (Successor), 57% of the revenues provided by Equinor were attributable to our Floaters segment and 43% of the revenues were attributable to our Jackups segment.
During the two months ended June 30, 2021 (Successor) and one month and four months ended April 30, 2021 (Predecessor), 100% of the revenues provided by Equinor were attributable to our Jackups segment.

(2)During the three months ended June 30, 2022 (Successor), 35% of the revenues provided by BP were attributable to our Floaters segment, 19% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

During the six months ended June 30, 2022 (Successor), 39% of the revenues provided by BP were attributable to our Floaters segment, 16% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs.

During the two months ended June 30, 2021 (Successor), 25% of the revenues provided by BP were attributable to our Jackups segment, and the remaining were attributable to our managed rigs. During the one month and four months ended April 30, 2021 (Predecessor), 7% and 37%, respectively, of the revenues provided by BP were attributable to our Floaters segment, 28% and 17%, respectively, of the revenues were attributable to our Jackups segment, and the remaining were attributable to our managed rigs.
Revenue from External Customers by Geographic Areas   Consolidated revenues for locations that individually had 10% or more of revenue are as follows (in millions):
SuccessorPredecessor
Three Months Ended June 30, 2022Two Months Ended June 30, 2021One Month Ended April 30, 2021
U.S. Gulf of Mexico(1)
$125.8 $30.9 $17.6 
United Kingdom(2)
63.1 41.1 19.6 
Saudi Arabia(3)
35.1 25.2 12.0 
Norway(2)
28.1 40.5 19.3 
Mexico(4)
20.6 18.9 6.1 
Other140.6 46.2 15.7 
$413.3 $202.8 $90.3 

SuccessorPredecessor
Six Months Ended June 30, 2022Two Months Ended June 30, 2021Four Months Ended April 30, 2021
U.S. Gulf of Mexico(1)
$176.4 $30.9 $74.4 
United Kingdom(2)
128.7 41.1 75.7 
Saudi Arabia(3)
73.2 25.2 53.6 
Norway(2)
52.4 40.5 73.3 
Mexico(4)
42.7 18.9 44.3 
Other258.3 46.2 76.1 
$731.7 $202.8 $397.4 


(1)During the three months ended June 30, 2022 (Successor), 77% and 4% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and Jackups segment, respectively. The remaining revenues were attributable to our managed rigs.
During the six months ended June 30, 2022 (Successor), 66% and 7% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and Jackups segment, respectively. The remaining revenues were primarily attributable to our managed rigs.

During the two months ended June 30, 2021 (Successor), 56% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment. During the one month and four months ended April 30, 2021 (Predecessor), 62% and 64%, respectively, of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment. The remaining revenues were attributable to our managed rigs.

(2)During the three and six months ended June 30, 2022 (Successor), two months ended June 30, 2021 (Successor) and one month and four months ended April 30, 2021 (Predecessor), revenues earned in the United Kingdom and Norway were attributable to our Jackups segment.

(3)During the three and six months ended June 30, 2022 (Successor), 57% and 59%, respectively, of the revenues earned in Saudi Arabia were attributable to our Jackups segment. The remaining revenues were attributable to our Other segment and relates primarily to our rigs leased to ARO.

During the two months ended June 30, 2021 (Successor), 57% of the revenues earned in Saudi Arabia were attributable to our Jackups segment. During the one month and four months ended April 30, 2021 (Predecessor), 55% and 57%, respectively, of the revenues earned in Saudi Arabia were attributable to our Jackups segment.

(4)During the three and six months ended June 30, 2022 (Successor), 84% and 89%, respectively, of the revenues earned in Mexico were attributable to our Jackups segment, and the remaining revenues were attributable to our Floaters segment.

During the two months ended June 30, 2021 (Successor), 41% and 59% of the revenues earned in Mexico were attributable to our Floaters segment and Jackups segment, respectively. During the one month and four months ended April 30, 2021 (Predecessor), 4% and 49%, respectively, of the revenues earned in Mexico were attributable to our Floaters segment, and 96% and 51%, respectively, of the revenues earned in Mexico were attributable to our Jackups segment.
v3.22.2
Revenue from Contracts with Customers (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Dec. 31, 2021
Capitalized Contract Cost [Line Items]            
Early termination fee received     $ 51.0      
Early termination fee receivable     51.0   $ 51.0  
Asset Impairment Charges $ 0.0 $ 0.0 34.5 $ 756.5 34.5  
Capitalized Contract Cost, Net     84.2   $ 84.2  
Contract With Customers, Invoice Term         30 days  
Upfront Rig Mobilizations And Certain Contract Preparation [Member]            
Capitalized Contract Cost [Line Items]            
Capitalized Contract Cost, Net     73.7   $ 73.7 $ 31.4
Capitalized Contract Cost, Amortization 1.8 1.8 10.5 7.6 22.2  
Deferred Certification Costs            
Capitalized Contract Cost [Line Items]            
Capitalized Contract Cost, Net     10.5   10.5 $ 3.3
Capitalized Contract Cost, Amortization $ 0.5 $ 0.1 $ 0.8 $ 3.1 $ 1.1  
Minimum [Member]            
Capitalized Contract Cost [Line Items]            
Remaining duration of drilling contracts         1 month  
Maximum [Member]            
Capitalized Contract Cost [Line Items]            
Remaining duration of drilling contracts         3 years  
v3.22.2
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Current contract assets $ 0.5 $ 0.3
Noncurrent contract assets 0.8 0.0
Current contract liabilities (deferred revenue) 63.5 45.8
Noncurrent contract liabilities (deferred revenue) $ 13.9 $ 10.8
v3.22.2
Revenue from Contracts with Customers Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 5 Months Ended 6 Months Ended
Sep. 30, 2021
Jun. 30, 2022
Dec. 31, 2021
Contract Assets      
Contract with Customer, Asset, after Allowance for Credit Loss   $ 1.3 $ 0.3
Revenue recognized in advance of right to bill customer   4.4  
Contract Liabilities      
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance $ (25.5)    
Contract with Customer, Liability   77.4 $ 56.6
Contract with Customer, Liability, Increase from Cash Receipts   53.2  
Contract with Customer, Liability, Revenue Recognized, Added During Period   (6.9)  
Decrease due to transfer to receivables during the period   (3.4)  
Increase (Decrease) in Contract with Customer, Liability   $ 0.0  
v3.22.2
Revenue from Contracts with Customers Future Amortization of Liabilities and Deferred Costs (Details)
$ in Millions
Jun. 30, 2022
USD ($)
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 77.4
Capitalized Contract Cost, Net 84.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 46.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 6 months
Capitalized Contract Cost, Amortization Expense, Remainder Of Fiscal Year $ 35.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 23.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Capitalized Contract Cost, Amortization Expense, Year Two $ 40.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Capitalized Contract Cost [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 7.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 1 year
Capitalized Contract Cost, Amortization Expense, Year Three $ 8.0
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
v3.22.2
Equity Method Investment In ARO - Summarized Financial Data (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Apr. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Equity Method Investment, Summarized Financial Information [Abstract]                
    Cash and cash equivalents     $ 553.5     $ 553.5   $ 608.7
    Other current assets     159.0     159.0   117.8
Total assets     2,760.8     2,760.8   2,609.2
Liabilities, Current     547.1     547.1   422.0
Investment Owned, Balance [Abstract]                
Equity in earnings of ARO $ 1.2 $ 4.8 8.7   $ 3.1 13.0    
ARO                
Equity Method Investment, Summarized Financial Information [Abstract]                
Total assets     377.2     377.2   348.1
Total liabilities     52.9     52.9   49.1
Maximum exposure to loss     324.3     324.3   299.0
Investment Owned, Balance [Abstract]                
50% interest in ARO net income 1.9 2.3 5.0   6.0 5.7    
Amortization of basis differences (0.7) 2.5 3.7   (2.9) 7.3    
Equity in earnings of ARO $ 1.2 $ 4.8 8.7   $ 3.1 13.0    
ARO                
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]                
Equity Method Investment Summarized Fin Information Revenue     116.4 $ 124.8   227.7 $ 247.5  
Contract drilling (exclusive of depreciation)     82.1 92.7   166.3 179.0  
Depreciation     15.4 14.6   31.9 30.7  
General and administrative     3.2 4.3   8.4 7.3  
Operating income     15.7 13.2   21.1 30.5  
Other expense, net     3.3 3.1   6.6 7.6  
Provision for income taxes     2.5 1.9   3.2 6.4  
Equity Method Investment Summarized Fin Information Net Income Loss     9.9 $ 8.2   11.3 $ 16.5  
Equity Method Investment, Summarized Financial Information [Abstract]                
    Cash and cash equivalents     293.3     293.3   270.8
    Other current assets     106.3     106.3   135.0
Non-current assets     777.5     777.5   775.8
Total assets     1,177.1     1,177.1   1,181.6
Liabilities, Current     63.7     63.7   79.9
Liabilities, Noncurrent     958.7     958.7   956.7
Total liabilities     $ 1,022.4     $ 1,022.4   $ 1,036.6
v3.22.2
Equity Method Investment in ARO - Schedule of Related Parties (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
ARO          
Schedule of Equity Method Investments [Line Items]          
Lease revenue $ 5.1 $ 10.3 $ 14.6 $ 21.7 $ 28.8
v3.22.2
Equity Method Investment In ARO Narrative (Details)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
drillship
jackup
Apr. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
drillship
jackup
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Schedule of Equity Method Investments [Line Items]              
Number of Rigs Owned by ARO | jackup     7   7    
Total Number Of Contract Drilling Rigs     52   52    
Contracts Terms On Purchased Rigs         15 years    
Number of Newbuild Jackup Rigs | jackup     20   20    
Order Period         10 years    
ARO Rigs Under Construction | drillship     2   2    
Cost of ARO newbuild jackups, each     $ 176.0   $ 176.0    
Maximum Contingent Contributions To Joint Venture     1,250.0   $ 1,250.0    
Minimum Renewal Contract Terms For NewBuild Rigs         8 years    
Equity Method Investment Summarized Financial Information Accounts Receivable     6.4   $ 6.4 $ 12.1  
Equity Method Investment Summarized Financial Information Contract Liabilities     15.8   15.8 10.8  
Equity Method Investment Summarized Financial Information Accounts Payable     37.1   37.1 38.3  
Due from Joint Ventures, Noncurrent     264.5   264.5 $ 249.1 $ 442.7
Equity Method Investment Summarized Financial Information Interest Income $ 0.9 $ 7.7 10.7 $ 3.5 21.2    
Equity Method Investment Summarized Financial Information Interest Receivable     5.8   $ 5.8    
Shareholder Notes Payable, Term         10 years    
Accretion of discount on shareholders note   $ 6.0 $ 7.7 $ 0.0 $ 15.4    
London Interbank Offered Rate (LIBOR)              
Schedule of Equity Method Investments [Line Items]              
Debt Instrument, Basis Spread on Variable Rate         2.00%    
ARO              
Schedule of Equity Method Investments [Line Items]              
Total Number Of Contract Drilling Rigs     7   7    
Middle East & Africa              
Schedule of Equity Method Investments [Line Items]              
Total Number Of Contract Drilling Rigs     17   17    
Middle East & Africa | ARO              
Schedule of Equity Method Investments [Line Items]              
Total Number Of Contract Drilling Rigs     7   7    
Middle East & Africa | Work-in-progress | ARO              
Schedule of Equity Method Investments [Line Items]              
Total Number Of Contract Drilling Rigs | drillship     2   2    
ARO              
Schedule of Equity Method Investments [Line Items]              
Equity Method Investment, Ownership Percentage     50.00%   50.00%    
v3.22.2
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
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 $ 545.7 $ 545.3
Estimate of Fair Value Measurement [Member] | Notes Receivable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Estimated Fair Value 293.1  
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]    
Estimated Fair Value $ 534.6 $ 575.7
v3.22.2
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST $ 1,042.6 $ 957.0
Drilling rigs and equipment    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST 973.7 886.9
Work-in-progress    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST 30.5 35.6
Other    
Property, Plant and Equipment [Line Items]    
PROPERTY AND EQUIPMENT, AT COST $ 38.4 $ 34.5
v3.22.2
Property and Equipment (Narratives) (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
May 31, 2022
Apr. 30, 2022
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Apr. 30, 2021
Jun. 30, 2022
Mar. 31, 2022
Property, Plant and Equipment [Line Items]                  
Asset Impairment Charges     $ 0.0 $ 0.0 $ 34.5   $ 756.5 $ 34.5  
Gain (Loss) on Disposition of Other Assets             5.3 2.0  
Net proceeds from disposition of assets $ 7.0     $ 0.2     30.1 146.5  
Operating Segments [Member] | Jackups                  
Property, Plant and Equipment [Line Items]                  
Asset Impairment Charges         $ 0.0   0.0 $ 0.0  
Operating Segments [Member] | Jackups | V113 & V114                  
Property, Plant and Equipment [Line Items]                  
Gain (Loss) on Disposition of Other Assets   $ 120.0              
Operating Segments [Member] | Jackups | V36                  
Property, Plant and Equipment [Line Items]                  
Gain (Loss) on Disposition of Other Assets $ 8.5                
Foreign Exchange Forward | Loss on Impairment                  
Property, Plant and Equipment [Line Items]                  
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)             $ 5.6    
Floaters                  
Property, Plant and Equipment [Line Items]                  
Asset Impairment Charges           $ 756.5      
Property, Plant, and Equipment, Fair Value Disclosure                 $ 26.0
v3.22.2
Pension and other Postretirement Benefits - Narrative (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 5 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Sep. 30, 2021
Jun. 30, 2022
Retirement Benefits [Abstract]            
Defined Benefit Plan, Plan Assets, Amount     $ 2.7     $ 2.7
Defined Benefit Plan, Interest Cost $ 1.6 $ 3.8 5.6 $ 6.6   11.1
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (3.0) (6.2) (9.6) (12.1)   (19.1)
Defined Benefit Plan, Amortization of Gain (Loss) 0.0 0.0 0.1 (0.1) $ 0.0 0.1
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) $ (1.4) $ (2.4) $ (4.1) $ (5.4)   $ (8.1)
v3.22.2
Pension and Other Postretirement Benefits (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 5 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Sep. 30, 2021
Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]            
Net periodic pension and retiree medical income $ (1.4) $ (2.4) $ (4.1) $ (5.4)   $ (8.1)
Defined Benefit Plan, Interest Cost 1.6 3.8 5.6 6.6   11.1
Defined Benefit Plan, Amortization of Gain (Loss) 0.0 0.0 (0.1) 0.1 $ 0.0 (0.1)
Defined Benefit Plan, Expected Return (Loss) on Plan Assets $ (3.0) $ (6.2) (9.6) $ (12.1)   (19.1)
Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year     $ 2.3     $ 2.3
v3.22.2
Earnings Per Share - Reconciliation of Weighted-Average Shares (Details) - shares
shares in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]          
Basic 199.7 75.0 75.0 199.6 75.0
Unvested restricted stock units 0.0 0.0   0.0 0.6
Diluted 199.7 75.0 75.6 199.6 75.5
v3.22.2
Earnings Per Share (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Earnings Per Share [Abstract]          
Net Income (Loss) Attributable to Parent $ (3,557.0) $ (6.2) $ 111.6 $ (4,467.0) $ 73.0
Antidilutive share options excluded from computation of diluted earnings per share (in shares) 300,000 29,000 13,000 300,000 6,000
Class of Warrant or Right, Outstanding     5,470,971   5,470,971
Class of Warrant or Right, Exercise Price of Warrants or Rights     $ 131.88   $ 131.88
Warranted, Period Exercisable         7 years
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent $ (3,600.0)     $ (4,500.0)  
v3.22.2
Debt (Narrative) (Details)
Apr. 30, 2021
USD ($)
Reorganization, Chapter 11, Plan Effect Adjustment [Member]  
Debt Instrument [Line Items]  
Debt Issuance Costs, Net $ (5,200,000)
Senior Notes | First Lien Notes  
Debt Instrument [Line Items]  
Debt Instrument, Face Amount $ 550,000,000
Debt Instrument, Percent Secured, Equity Interest 100.00%
Debt Instrument, Allowable Redemption Percent, Prior To Maturity 35.00%
Debt Instrument, Redemption Price, Percent Of Net Cash Proceeds From Equity Offering 104.00%
Debt Instrument, Percent Of Note Remaining Outstanding 65.00%
Debt Instrument, Redemption Period Timing 12000.00%
Senior Notes | First Lien Notes | Debt Instrument, Redemption, Period One  
Debt Instrument [Line Items]  
Debt Instrument, Redemption Price, Percent Of Net Cash Proceeds From Equity Offering 104.00%
Senior Notes | First Lien Notes | Debt Instrument, Redemption, Period Two  
Debt Instrument [Line Items]  
Debt Instrument, Redemption Price, Percent Of Net Cash Proceeds From Equity Offering 100.00%
Senior Notes | First Lien Notes | Debt Instrument, Redemption, Period Three  
Debt Instrument [Line Items]  
Debt Instrument, Redemption Price, Percent Of Net Cash Proceeds From Equity Offering 101.00%
Senior Notes | First Lien Notes | Debt Instrument, Interest Rate Payout Option One  
Debt Instrument [Line Items]  
Debt Instrument, Interest Rate, Annual Payment Percent 8.25%
Senior Notes | First Lien Notes | Debt Instrument, Interest Rate Payout Option Two  
Debt Instrument [Line Items]  
Debt Instrument, Interest Rate, Annual Payment Percent 10.25%
Debt Instrument, Annual Interest Payout Percent In Cash 50.00%
Debt Instrument, Annual interest Payout Percent Paid In Kind 50.00%
Senior Notes | First Lien Notes | Debt Instrument, Interest Rate Payout Option Three  
Debt Instrument [Line Items]  
Debt Instrument, Interest Rate, Annual Payment Percent Paid In Kind 12.00%
v3.22.2
Shareholders Equity Shareholders' Equity (Details) - USD ($)
shares in Millions, $ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Mar. 31, 2022
Mar. 31, 2021
Apr. 30, 2021
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance       $ 1,060.8     $ 1,060.8
Net income (loss) $ (3,556.2) $ (4.1) $ 112.8     $ (4,463.8) 73.0
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit 0.0 0.0 (0.1)     0.1 (0.1)
Shares withheld for taxes on vesting of share-based awards     (0.2)        
Net other comprehensive income (loss) $ (0.2) $ (0.2) 0.2     $ (5.5) (0.1)
Ending balance     $ 1,140.4       $ 1,140.4
Common Stock              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance (in shares) 206.1 75.0 75.0 75.0 206.1 206.1 75.0
Beginning balance $ 82.6 $ 0.8 $ 0.8 $ 0.8 $ 82.6 $ 82.6 $ 0.8
Cancellation of predecessor equity (in shares) (206.1)            
Cancellation of Predecessor equity $ (82.6)            
Shares issued upon emergence (in shares) 75.0            
Issuance of Successor Common Shares and Warrants $ 0.8            
Ending balance (in shares) 75.0 75.0 75.0 75.0 206.1 75.0 75.0
Ending balance $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 82.6 $ 0.8 $ 0.8
Additional Paid-in Capital              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance 8,643.5 1,078.7 1,086.4 1,083.0 8,639.9 8,639.9 1,083.0
Shares issued under share-based compensation plans, net (0.5)       (0.2)    
Share-based compensation cost 1.0   3.5 3.4 3.8    
Cancellation of Predecessor equity (8,644.0)            
Issuance of Successor Common Shares and Warrants 1,078.7            
Ending balance 1,078.7 1,078.7 1,089.9 1,086.4 8,643.5 1,078.7 1,089.9
Warrants              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance 0.0 16.4 16.4 16.4 0.0 0.0 16.4
Issuance of Successor Common Shares and Warrants 16.4            
Ending balance 16.4 16.4 16.4 16.4 0.0 16.4 16.4
Retained Earnings (Deficit)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance (5,093.8) 0.0 (71.6) (33.0) (4,183.8) (4,183.8) (33.0)
Net income (loss) (3,557.0) (6.2) 111.6 (38.6) (910.0)    
Cancellation of Predecessor equity 8,650.8            
Ending balance 0.0 (6.2) 40.0 (71.6) (5,093.8) 0.0 40.0
AOCI               
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance (93.2) 0.0 (9.4) (9.1) (87.9) (87.9) (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) (0.2) (0.2) 0.3 (0.3) (5.4)    
Cancellation of Predecessor equity 93.4            
Ending balance 0.0 (0.2) (9.2) (9.4) (93.2) 0.0 (9.2)
Treasury Shares              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance (76.0) 0.0 0.0 0.0 (76.2) (76.2) 0.0
Shares issued under share-based compensation plans, net 0.5       0.2    
Cancellation of Predecessor equity 75.5            
Ending balance 0.0 0.0 (0.2) 0.0 (76.0) 0.0 (0.2)
Non-controlling Interest              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Beginning balance (1.9) (1.1) 1.5 2.7 (4.3) (4.3) 2.7
Net income (loss) 0.8 2.1 1.2 (1.2) 2.4    
Ending balance $ (1.1) $ 1.0 $ 2.7 $ 1.5 $ (1.9) $ (1.1) $ 2.7
v3.22.2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Apr. 30, 2021
Jun. 30, 2022
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]            
Discrete Income Tax Expense (Benefit)   $ (5.6) $ (6.2) $ 18.1 $ (2.2) $ 8.3
Income Tax Expense (Benefit) Excluding Discrete Items $ 2.6 $ 9.5 $ 14.0   $ 14.0 $ 27.8
v3.22.2
Contingencies (Narrative) (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2022
USD ($)
jackup
drillship
Dec. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]    
Number of Newbuild Jackup Rigs | jackup 20  
Order Period 10 years  
ARO Rigs Under Construction | drillship 2  
Cost of ARO newbuild jackups, each $ 176.0  
Percentage of Down Payment Paid for ARO Newbuilds 25.00%  
Maximum Contingent Contributions To Joint Venture $ 1,250.0  
Minimum Renewal Contract Terms For NewBuild Rigs 8 years  
Letters of credit outstanding, amount $ 136.2  
Deposit Liabilities, Collateral Issued, Financial Instruments 20.6 $ 31.1
Loss contingency accrual, period increase $ 25.0  
v3.22.2
Segment Information (Narrative) (Details)
 6 Months Ended
Jun. 30, 2022
Reportable_segment
drillship
Segment Reporting Information [Line Items]  
Number of operating segments (in segments) | Reportable_segment 4
Total Number Of Contract Drilling Rigs 52
Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 16
Asia & Pacific Rim  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 6
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
Asia & Pacific Rim | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 2
Asia & Pacific Rim | Work-in-progress | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 2
North & South America  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 13
North & South America | Other  
Segment Reporting Information [Line Items]  
Number of Drilling Management Contracts 2
Total Number Of Contract Drilling Rigs 0
North & South America | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 0
North & South America | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
Middle East & Africa  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 17
Middle East & Africa | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
Middle East & Africa | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
Middle East & Africa | Floaters  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 3
Middle East & Africa | Work-in-progress | ARO  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 2
v3.22.2
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]            
Revenues $ 90.3 $ 202.8 $ 413.3 $ 397.4 $ 731.7  
Operating expenses            
Contract drilling (exclusive of depreciation) 90.2 168.6 361.8 343.8 693.1  
Loss on impairment 0.0 0.0 34.5 756.5 34.5  
Depreciation expense 37.5 16.6 22.3 159.6 44.8  
General and Administrative Expense 6.4 12.7 19.0 30.7 37.8  
Equity in earnings of ARO (1.2) (4.8) (8.7) (3.1) (13.0)  
Operating Income (Loss) (42.6) 9.7 (15.6) (890.1) (65.5)  
Property, Plant and Equipment, Net (909.1) (897.8) (931.7) (909.1) (931.7) $ (890.9)
Operating Segments [Member] | Floaters            
Segment Reporting Information [Line Items]            
Revenues 18.4 49.7 188.1 115.7 287.8  
Operating expenses            
Contract drilling (exclusive of depreciation) 21.4 45.3 165.3 106.5 312.9  
Loss on impairment     34.5 756.5 34.5  
Depreciation expense 15.9 7.9 12.3 72.1 24.5  
General and Administrative Expense 0.0 0.0 0.0 0.0 0.0  
Equity in earnings of ARO 0.0 0.0 0.0 0.0 0.0  
Operating Income (Loss) (18.9) (3.5) (24.0) (819.4) (84.1)  
Property, Plant and Equipment, Net (419.3) (413.8) (462.9) (419.3) (462.9)  
Operating Segments [Member] | Jackups            
Segment Reporting Information [Line Items]            
Revenues 59.8 128.5 185.8 232.4 366.5  
Operating expenses            
Contract drilling (exclusive of depreciation) 53.8 95.4 142.2 175.0 281.4  
Loss on impairment     0.0 0.0 0.0  
Depreciation expense 17.3 7.8 8.7 69.7 17.8  
General and Administrative Expense 0.0 0.0 0.0 0.0 0.0  
Equity in earnings of ARO 0.0 0.0 0.0 0.0 0.0  
Operating Income (Loss) (11.3) 25.3 34.9 (12.3) 67.3  
Property, Plant and Equipment, Net (401.4) (396.2) (384.8) (401.4) (384.8)  
Operating Segments [Member] | ARO            
Segment Reporting Information [Line Items]            
Revenues 40.8 84.0 116.4 163.5 227.7  
Operating expenses            
Contract drilling (exclusive of depreciation) 29.8 62.9 82.1 116.1 166.3  
Loss on impairment     0.0 0.0 0.0  
Depreciation expense 4.9 9.7 15.4 21.0 31.9  
General and Administrative Expense 1.2 3.1 3.2 4.2 8.4  
Equity in earnings of ARO 0.0 0.0 0.0 0.0 0.0  
Operating Income (Loss) 4.9 8.3 15.7 22.2 21.1  
Property, Plant and Equipment, Net (730.7) (730.0) (733.4) (730.7) (733.4)  
Operating Segments [Member] | Other            
Segment Reporting Information [Line Items]            
Revenues 12.1 24.6 39.4 49.3 77.4  
Operating expenses            
Contract drilling (exclusive of depreciation) 4.7 9.2 24.7 19.9 40.2  
Loss on impairment     0.0 0.0 0.0  
Depreciation expense 3.5 0.8 1.3 14.8 2.2  
General and Administrative Expense 0.0 0.0 0.0 0.0 0.0  
Equity in earnings of ARO 0.0 0.0 0.0 0.0 0.0  
Operating Income (Loss) 3.9 14.6 13.4 14.6 35.0  
Property, Plant and Equipment, Net (50.5) (49.8) (50.4) (50.5) (50.4)  
Corporate, Non-Segment [Member] | Reconciling Items            
Segment Reporting Information [Line Items]            
Revenues (40.8) (84.0) (116.4) (163.5) (227.7)  
Operating expenses            
Contract drilling (exclusive of depreciation) (19.5) (44.2) (52.5) (73.7) (107.7)  
Loss on impairment     0.0 0.0 0.0  
Depreciation expense (4.1) (9.6) (15.4) (18.0) (31.6)  
General and Administrative Expense 5.2 9.6 15.8 26.5 29.4  
Equity in earnings of ARO (1.2) (4.8) (8.7) (3.1) (13.0)  
Operating Income (Loss) (21.2) (35.0) (55.6) (95.2) (104.8)  
Property, Plant and Equipment, Net $ 692.8 $ 692.0 $ 699.8 $ 692.8 $ 699.8  
v3.22.2
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details)
Jun. 30, 2022
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 29
Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
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 7
Middle East & Africa | Other  
Segment Reporting Information [Line Items]  
Total Number Of Contract Drilling Rigs 7
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
v3.22.2
Supplemental Financial Information (Accounts Receivable, Net) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 561.3 $ 460.6
Allowance for doubtful accounts (16.7) (16.4)
Accounts receivable, net 544.6 444.2
Trade    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables 391.2 296.8
Income Tax Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables 146.9 151.1
Other Accounts Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade receivables $ 23.2 $ 12.7
v3.22.2
Supplemental Financial Information (Other Current Assets) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Supplemental Financial Information [Abstract]    
Prepaid taxes $ 47.4 $ 44.4
Prepaid expenses 27.1 23.1
Other Deferred Costs, Net 57.9 26.9
Other 26.6 23.4
Other current assets $ 159.0 $ 117.8
v3.22.2
Supplemental Financial Information (Other Assets, Net) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Supplemental Financial Information [Abstract]    
Tax receivables $ 63.0 $ 64.8
Deferred Income Tax Assets, Net 52.2 59.7
Right-of-use assets 23.0 20.5
Other 45.9 31.0
Other assets, net $ 184.1 $ 176.0
v3.22.2
Supplemental Financial Information (Accrued Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Supplemental Financial Information [Abstract]    
Deferred revenue $ 63.5 $ 45.8
Income and other taxes payable 55.1 45.7
Personnel costs 53.2 47.3
Accrued claims 41.2 17.3
Lease liabilities 8.5 10.0
Accrued interest 7.6 7.6
Other 31.0 22.5
 Accrued liabilities and other $ 260.1 $ 196.2
v3.22.2
Supplemental Financial Information (Other Liabilities) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Supplemental Financial Information [Abstract]    
Unrecognized tax benefits (inclusive of interest and penalties) $ 274.2 $ 320.2
Pension and other post-retirement benefits 194.5 204.0
Other 58.9 56.9
Other liabilities $ 527.6 $ 581.1
v3.22.2
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Supplemental Financial Information [Abstract]    
Pension and other post-retirement benefits $ (9.2) $ (9.1)
v3.22.2
Supplemental Financial Information (Other Income) (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Supplemental Financial Information [Abstract]          
Foreign Currency Transaction Gain (Loss), before Tax $ (3.2) $ 3.1 $ 10.7 $ 13.4 $ 15.4
Net periodic pension income (1.4) 2.4 (4.1) 5.4 8.1
Gain (Loss) on Sale of Properties 4.6 (0.1) 135.1 6.0 137.6
Other Nonoperating Expense 0.6 0.2 0.2 1.1 0.4
Other Nonoperating Income (Expense) $ 3.4 $ 5.6 $ 149.7 $ 25.9 $ 160.7
v3.22.2
Supplemental Financial Information Schedule of Revenue by Major Customers, by Reporting Segments (Details) - Revenue Benchmark [Member] - Customer Concentration Risk
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Apr. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 100.00% 100.00% 100.00% 100.00% 100.00%  
Equinor ASA            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 7.00% 6.00% 17.00% 6.00% 12.00%  
British Petroleum            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 11.00% 9.00% 13.00% 14.00% 14.00%  
Other            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 82.00% 85.00% 70.00% 80.00% 74.00%  
Floaters | Equinor ASA            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage     72.00%   57.00%  
Floaters | British Petroleum            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 7.00%   35.00% 37.00%   39.00%
Jackups | Equinor ASA            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 100.00%   28.00% 100.00% 43.00%  
Jackups | British Petroleum            
Revenues from External Customers and Long-Lived Assets [Line Items]            
Concentration risk, percentage 28.00% 25.00% 19.00% 17.00%   16.00%
v3.22.2
Supplemental Financial Information Revenue from External Customers by Geographic Areas (Details) - USD ($)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended 4 Months Ended 5 Months Ended 6 Months Ended
Apr. 30, 2021
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Apr. 30, 2021
Sep. 30, 2021
Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES $ 90.3 $ 202.8 $ 413.3   $ 397.4   $ 731.7
Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 90.3 202.8 413.3   397.4   731.7
UNITED KINGDOM | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 19.6 41.1 63.1   75.7   128.7
NORWAY | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 19.3 40.5 28.1   73.3   52.4
US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 17.6 30.9 125.8   74.4   176.4
SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 12.0 25.2 35.1   53.6   73.2
MEXICO | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES 6.1 18.9 20.6   44.3   42.7
Other | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
OPERATING REVENUES $ 15.7 $ 46.2 $ 140.6   $ 76.1   $ 258.3
Floaters | US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
Concentration risk, percentage 62.00% 56.00% 77.00% 66.00% 64.00% 4.00%  
Floaters | MEXICO | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
Concentration risk, percentage 4.00% 41.00%     49.00%    
Jackups | US Gulf Of Mexico | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
Concentration risk, percentage       7.00%      
Jackups | SAUDI ARABIA | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
Concentration risk, percentage 55.00% 57.00% 57.00%   57.00%   59.00%
Jackups | MEXICO | Revenue Benchmark [Member] | Geographic Concentration Risk              
Revenues from External Customers and Long-Lived Assets [Line Items]              
Concentration risk, percentage   59.00% 84.00%       89.00%
v3.22.2
Supplemental Financial Information - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Restricted Cash $ 23.8 $ 35.9
Deposit Liabilities, Collateral Issued, Financial Instruments $ 20.6 $ 31.1