Financial instruments and risk management (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Risk

We have set out our exposure to interest rate risk on our net debt obligations at December 31, 2020 in the table below:

(In $ millions)	Principal	Hedging instruments	Total	Impact of 1% increase in rates
Senior Credit Facilities	5,662	(4,500)	1,162	12
Ineffective portion of interest rate cap (1)	—	4,500	4,500	45
Debt exposed to interest rate fluctuations	5,662	—	5,662	57
Less: Cash and Restricted Cash	(723)	—	(723)	(7)
Net debt exposed to interest rate fluctuations (2)	4,939	—	4,939	50

(1) The 3-month LIBOR rate as at December 31, 2020 was 0.238%. At this date, the interest cap would mitigate none of the impact of a theoretical 1% point increase in LIBOR.

(2) The $515 million of Senior Secured Notes are a fixed rate debt instrument and are therefore excluded from the above table.

Schedule of Realized and Unrealized Gains and Losses

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

	Successor			Predecessor
(In $ millions)	Year ended December 31, 2020	Year ended December 31, 2019	Period from July 2, 2018 through December 31, 2018	Period from January 1, 2018 through July 1, 2018
Loss recognized in the Consolidated Statement of Operations relating to derivative financial instruments
Interest rate cap agreement	(3)	(37)	(22)	(6)
Archer convertible debt instrument	3	—	(9)	2
Loss on derivative financial instruments	—	(37)	(31)	(4)

Schedule of Derivative Financial Instruments

Derivative financial instruments included in our Consolidated Balance Sheets, within "other non-current assets" included the following:

(In $ millions)	Maturity date	Applicable rate	Outstanding principal - December 31, 2020	December 31, 2020	December 31, 2019
Interest rate cap	June 2023	2.87% LIBOR cap	4,500	—	3
				—	3