Long-Lived Asset Impairments (Notes)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

7 – Long-Lived Assets Impairment

We did not recognize long-lived assets impairments in the 2021 Successor Period.

During the 2020 Successor Period, the global economic and industry conditions resulting from the decline in demand and impact from the COVID-19 pandemic were identified as impairment indicators. As a result, we performed interim impairment assessments of our property, plant and equipment, definite-lived intangible assets, and right of use assets with the assistance of a third-party valuation advisor. As of March 31, 2020, and as of June 30, 2020, we determined the carrying amount of certain long-lived assets exceeded their respective fair values and recognized $814 million of long-lived asset impairments as summarized by asset class and segment in the table below, which was included in “Goodwill and Long-Lived Assets Impairment” on the Consolidated Statements of Operations.

The fair values of our long-lived assets were determined using discounted cash flows under the income approach, a Level 3 fair value analysis. The income approach required significant assumptions to determine the fair value of an asset or asset group including the estimated discounted future cash flows, forecasted revenues and operating margins and the discount rate.


Long-Lived Assets Impairment by Asset Class and Segment

(Dollars in millions)	Drilling and Evaluation		Well Construction and Completions		Production and Intervention		All Other		Total
Property, Plant and Equipment	$	195	$	126	$	232	$	18	$	571
Intangible Assets	76		39		40		—		155
Right of Use Assets	14		20		54		—		88
Long-lived Assets Impairment	$	285	$	185	$	326	$	18	$	814

We recognized long-lived assets impairment of $20 million for the 2019 Predecessor Period to write-down our land drilling rigs included in All Other due to the sustained downturn in the energy services industry.