Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Information

Financial information with respect to operating segments

The following table sets forth financial information with respect to our reportable operating segments:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2024		2023		2024		2023
	(In thousands)
Operating revenues:
U.S. Drilling		$	254,773	$	276,385	$	786,485	$	941,867
International Drilling			368,594		344,780		1,074,686		1,002,478
Drilling Solutions			79,544		72,831		238,079		224,729
Rig Technologies			45,809		61,437		145,511		183,481
Other reconciling items (1)			(16,915)		(21,459)		(44,454)		(72,375)
Total		$	731,805	$	733,974	$	2,200,307	$	2,280,180

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2024		2023		2024		2023
	(In thousands)
Adjusted operating income (loss): (2)
U.S. Drilling		$	41,694	$	49,582	$	137,308	$	210,859
International Drilling			32,182		9,862		78,330		22,226
Drilling Solutions			29,231		25,341		83,443		80,830
Rig Technologies			2,761		4,995		11,830		13,741
Total segment adjusted operating income (loss)		$	105,868	$	89,780	$	310,911	$	327,656

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2024		2023		2024		2023
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss):
Net income (loss)		$	(33,087)	$	(31,244)	$	(55,118)	$	46,047
Income tax expense (benefit)			10,118		10,513		41,716		59,976
Income (loss) before income taxes			(22,969)		(20,731)		(13,402)		106,023
Investment (income) loss			(11,503)		(10,169)		(29,885)		(31,778)
Interest expense			55,350		44,042		157,222		135,347
Other, net			41,608		35,546		69,795		(8,604)
Other reconciling items (3)			43,382		41,092		127,181		126,668
Total segment adjusted operating income (loss) (2)		$	105,868	$	89,780	$	310,911	$	327,656

	September 30,		December 31,
	2024		2023
	(In thousands)
Total assets:
U.S. Drilling	$	1,108,961	$	1,239,765
International Drilling		2,321,729		2,227,308
Drilling Solutions		77,810		78,472
Rig Technologies		213,507		239,167
Other reconciling items (3)		831,629		1,493,253
Total	$	4,553,636	$	5,277,965

(1) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.

(2) Adjusted operating income (loss) represents income (loss) before income taxes, interest expense, investment income (loss), and other, net. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our

ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation from net income (loss) is provided in the above table.

(3) Represents the elimination of inter-segment transactions and unallocated corporate expenses and assets.