QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Ticker Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-Accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
OPERATING REVENUES | $ | $ | ||||||||||||
OPERATING EXPENSES | ||||||||||||||
Contract drilling (exclusive of depreciation) | ||||||||||||||
Loss on impairment | ||||||||||||||
Depreciation | ||||||||||||||
General and administrative | ||||||||||||||
Total operating expenses | ||||||||||||||
EQUITY IN EARNINGS OF ARO | ||||||||||||||
OPERATING LOSS | ( | ( | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||
Interest income | ||||||||||||||
Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $ | ( | ( | ||||||||||||
Reorganization items, net | ( | ( | ||||||||||||
Other, net | ||||||||||||||
( | ||||||||||||||
LOSS BEFORE INCOME TAXES | ( | ( | ||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES | ||||||||||||||
Current income tax expense (benefit) | ( | |||||||||||||
Deferred income tax expense (benefit) | ( | |||||||||||||
( | ||||||||||||||
NET LOSS | ( | ( | ||||||||||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ( | |||||||||||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ | ( | $ | ( | ||||||||||
LOSS PER SHARE - BASIC AND DILUTED | $ | ( | $ | ( | ||||||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING | ||||||||||||||
Basic and Diluted |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
NET LOSS | $ | ( | $ | ( | ||||||||||
OTHER COMPREHENSIVE LOSS, NET | ||||||||||||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit | ||||||||||||||
Reclassification of net gains on derivative instruments from other comprehensive loss into net loss | ( | |||||||||||||
Other | ( | |||||||||||||
NET OTHER COMPREHENSIVE LOSS | ( | ( | ||||||||||||
COMPREHENSIVE LOSS | ( | ( | ||||||||||||
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ( | |||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ | ( | $ | ( |
March 31, 2022 | December 31, 2021 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
PROPERTY AND EQUIPMENT, AT COST | |||||||||||
Less accumulated depreciation | |||||||||||
Property and equipment, net | |||||||||||
LONG-TERM NOTES RECEIVABLE FROM ARO | |||||||||||
INVESTMENT IN ARO | |||||||||||
OTHER ASSETS | |||||||||||
$ | $ | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable - trade | $ | $ | |||||||||
Accrued liabilities and other | |||||||||||
Total current liabilities | |||||||||||
LONG-TERM DEBT | |||||||||||
OTHER LIABILITIES | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
VALARIS SHAREHOLDERS' EQUITY | |||||||||||
Common shares, $ | |||||||||||
Preference shares, $ | |||||||||||
Stock warrants | |||||||||||
Additional paid-in capital | |||||||||||
Retained deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Valaris shareholders' equity | |||||||||||
NONCONTROLLING INTERESTS | |||||||||||
Total equity | |||||||||||
$ | $ |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation expense | ||||||||||||||
Accretion of discount on shareholders note | ( | |||||||||||||
Equity in earnings of ARO | ( | ( | ||||||||||||
Net periodic pension and retiree medical income | ( | ( | ||||||||||||
Share-based compensation expense | ||||||||||||||
Gain on asset disposals | ( | ( | ||||||||||||
Amortization, net | ( | |||||||||||||
Deferred income tax expense (benefit) | ( | |||||||||||||
Amortization of debt issuance cost | ||||||||||||||
Loss on impairment | ||||||||||||||
Other | ||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Contributions to pension plans and other post-retirement benefits | ( | ( | ||||||||||||
Net cash provided by (used in) operating activities | ( | |||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Additions to property and equipment | ( | ( | ||||||||||||
Net proceeds from disposition of assets | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | |||||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ( | ( | ||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | ||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Current contract assets | $ | $ | |||||||||
Noncurrent contract assets | $ | $ | |||||||||
Current contract liabilities (deferred revenue) | $ | $ | |||||||||
Noncurrent contract liabilities (deferred revenue) | $ | $ |
Contract Assets | Contract Liabilities | ||||||||||
Balance as of December 31, 2021 | $ | $ | |||||||||
Revenue recognized in advance of right to bill customer | — | ||||||||||
Increase due to cash received | — | ||||||||||
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance | — | ( | |||||||||
Decrease due to amortization of deferred revenue added during the period | — | ( | |||||||||
Balance as of March 31, 2022 | $ | $ |
Remaining 2022 | 2023 | 2024 | 2025 and Thereafter | Total | ||||||||||||||||||||||||||||
Amortization of contract liabilities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Amortization of deferred costs | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||
Revenues | $ | $ | ||||||||||||
Operating expenses | ||||||||||||||
Contract drilling (exclusive of depreciation) | ||||||||||||||
Depreciation | ||||||||||||||
General and administrative | ||||||||||||||
Operating income | ||||||||||||||
Other expense, net | ||||||||||||||
Provision for income taxes | ||||||||||||||
Net income | $ | $ |
March 31, 2022 | December 31, 2021 | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Other current assets | ||||||||||||||
Non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Current liabilities | $ | $ | ||||||||||||
Non-current liabilities | ||||||||||||||
Total liabilities | $ | $ |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
50% interest in ARO net income | $ | $ | ||||||||||||
Amortization of basis differences | ( | |||||||||||||
Equity in earnings of ARO | $ | $ |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
Lease revenue | $ | $ | ||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Total assets | $ | $ | |||||||||
Less: total liabilities | |||||||||||
Maximum exposure to loss | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||
Senior secured first lien notes due 2028 | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
Drilling rigs and equipment | $ | $ | ||||||||||||
Work-in-progress | ||||||||||||||
Other | ||||||||||||||
$ | $ |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
Interest cost | ||||||||||||||
Expected return on plan assets | ( | ( | ||||||||||||
Amortization of net loss | ||||||||||||||
Net periodic pension and retiree medical income (1) | $ | ( | $ | ( |
Shares | Par Value | Additional Paid-in Capital | Warrants | Retained Earnings (Deficit) | AOCI | Non-controlling Interest | |||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2021 (Successor) | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2022 (Successor) | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid-in Capital | Retained Earnings (Deficit) | AOCI | Treasury Shares | Non-controlling Interest | |||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2020 (Predecessor) | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||
Shares issued under share-based compensation plans, net | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||
Net changes in pension and other postretirement benefits | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net other comprehensive loss | — | — | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2021 (Predecessor) | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | ( | |||||||||||||||||||||||||||||||||||||
Depreciation | ( | |||||||||||||||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||||||||
Equity in earnings of ARO | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | ( | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Property and equipment, net | $ | $ | $ | $ | $ | ( | $ |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | ( | |||||||||||||||||||||||||||||||||||||
Loss on impairment | ||||||||||||||||||||||||||||||||||||||
Depreciation | ( | |||||||||||||||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||||||||
Equity in earnings of ARO | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||
Property and equipment, net | $ | $ | $ | $ | $ | ( | $ |
Floaters | Jackups | Other | Total Valaris | ARO | |||||||||||||||||||||||||
North & South America | |||||||||||||||||||||||||||||
Europe & the Mediterranean | |||||||||||||||||||||||||||||
Middle East & Africa | |||||||||||||||||||||||||||||
Asia & Pacific Rim | |||||||||||||||||||||||||||||
Total |
March 31, 2022 | December 31, 2021 | ||||||||||
Trade | $ | $ | |||||||||
Income tax receivable | |||||||||||
Other | |||||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
$ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Prepaid taxes | $ | $ | |||||||||
Deferred costs | |||||||||||
Prepaid expenses | |||||||||||
Other | |||||||||||
$ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Tax receivables | $ | $ | |||||||||
Deferred tax assets | |||||||||||
Right-of-use assets | |||||||||||
Other | |||||||||||
$ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Personnel costs | $ | $ | |||||||||
Deferred revenue | |||||||||||
Income and other taxes payable | |||||||||||
Accrued interest | |||||||||||
Lease liabilities | |||||||||||
Other | |||||||||||
$ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Unrecognized tax benefits (inclusive of interest and penalties) | $ | $ | |||||||||
Pension and other post-retirement benefits | |||||||||||
Other | |||||||||||
$ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Pension and other post-retirement benefits | $ | ( | $ | ( | |||||||
Currency translation adjustment | ( | ||||||||||
$ | ( | $ | ( |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
Net foreign currency exchange gains | $ | $ | ||||||||||||
Net periodic pension income, excluding service cost | ||||||||||||||
Net gain on sale of property | ||||||||||||||
Other income (expense) | ( | |||||||||||||
$ | $ |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
BP plc ("BP")(1) | % | % | ||||||||||||
Shell plc ("Shell")(2) | % | % | ||||||||||||
Eni S.p.A ("Eni")(3) | % | % | ||||||||||||
Other | % | % | ||||||||||||
% | % |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
United Kingdom(1) | $ | $ | ||||||||||||
U.S. Gulf of Mexico(2) | ||||||||||||||
Saudi Arabia(3) | ||||||||||||||
Norway(1) | ||||||||||||||
Mexico(4) | ||||||||||||||
Other | ||||||||||||||
$ | $ |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended December 31, 2021 | Three Months Ended March 31, 2021 | ||||||||||||||||||
Revenues | $ | 318.4 | $ | 305.5 | $ | 307.1 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 331.3 | 285.5 | 253.6 | |||||||||||||||||
Loss on impairment | — | — | 756.5 | |||||||||||||||||
Depreciation | 22.5 | 25.1 | 122.1 | |||||||||||||||||
General and administrative | 18.8 | 18.3 | 24.3 | |||||||||||||||||
Total operating expenses | 372.6 | 328.9 | 1,156.5 | |||||||||||||||||
Equity in earnings (losses) of ARO | 4.3 | (1.3) | 1.9 | |||||||||||||||||
Operating loss | (49.9) | (24.7) | (847.5) | |||||||||||||||||
Other income (expense), net | 9.4 | 21.4 | (28.4) | |||||||||||||||||
Provision (benefit) for income taxes | (0.7) | (31.0) | 31.7 | |||||||||||||||||
Net income (loss) | (39.8) | 27.7 | (907.6) | |||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 1.2 | — | (2.4) | |||||||||||||||||
Net income (loss) attributable to Valaris | $ | (38.6) | $ | 27.7 | $ | (910.0) |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Floaters | 16 | 16 | 16 | ||||||||||||||
Jackups(1) | 31 | 33 | 36 | ||||||||||||||
Other(2) | 8 | 7 | 9 | ||||||||||||||
Total Valaris | 55 | 56 | 61 | ||||||||||||||
ARO(3) | 7 | 7 | 7 | ||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended December 31, 2021 | Three Months Ended March 31, 2021 | |||||||||||||||
Rig Utilization(1) | |||||||||||||||||
Floaters | 25 | % | 28 | % | 29 | % | |||||||||||
Jackups | 63 | % | 55 | % | 50 | % | |||||||||||
Other (2) | 100 | % | 100 | % | 100 | % | |||||||||||
Total Valaris | 57 | % | 54 | % | 54 | % | |||||||||||
ARO | 91 | % | 84 | % | 90 | % | |||||||||||
Average Day Rates(3) | |||||||||||||||||
Floaters | $ | 197,394 | $ | 188,523 | $ | 198,485 | |||||||||||
Jackups | 88,641 | 90,053 | 95,043 | ||||||||||||||
Other (2) | 39,227 | 32,538 | 31,647 | ||||||||||||||
Total Valaris | $ | 89,609 | $ | 89,325 | $ | 88,637 | |||||||||||
ARO | $ | 95,867 | $ | 97,251 | $ | 93,199 |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 99.7 | $ | 180.7 | $ | 111.3 | $ | 38.0 | $ | (111.3) | $ | 318.4 | ||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 147.6 | 139.2 | 84.2 | 15.5 | (55.2) | 331.3 | ||||||||||||||||||||||||||||||||
Depreciation | 12.2 | 9.1 | 16.5 | 0.9 | (16.2) | 22.5 | ||||||||||||||||||||||||||||||||
General and administrative | — | — | 5.2 | — | 13.6 | 18.8 | ||||||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | 4.3 | 4.3 | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (60.1) | $ | 32.4 | $ | 5.4 | $ | 21.6 | $ | (49.2) | $ | (49.9) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 100.5 | $ | 172.3 | $ | 105.4 | $ | 32.7 | $ | (105.4) | $ | 305.5 | ||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 113.8 | 128.0 | 88.9 | 15.4 | (60.6) | 285.5 | ||||||||||||||||||||||||||||||||
Depreciation | 11.7 | 12.1 | 17.7 | 1.1 | (17.5) | 25.1 | ||||||||||||||||||||||||||||||||
General and administrative | — | — | 5.1 | — | 13.2 | 18.3 | ||||||||||||||||||||||||||||||||
Equity in losses of ARO | — | — | — | — | (1.3) | (1.3) | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (25.0) | $ | 32.2 | $ | (6.3) | $ | 16.2 | $ | (41.8) | $ | (24.7) |
Floaters | Jackups | ARO | Other | Reconciling Items | Consolidated Total | |||||||||||||||||||||||||||||||||
Revenues | $ | 97.3 | $ | 172.6 | $ | 122.7 | $ | 37.2 | $ | (122.7) | $ | 307.1 | ||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||
Contract drilling (exclusive of depreciation) | 85.1 | 121.3 | 86.3 | 15.3 | (54.4) | 253.6 | ||||||||||||||||||||||||||||||||
Loss on impairment | 756.5 | — | — | — | — | 756.5 | ||||||||||||||||||||||||||||||||
Depreciation | 56.2 | 52.4 | 16.1 | 11.3 | (13.9) | 122.1 | ||||||||||||||||||||||||||||||||
General and administrative | — | — | 3.0 | — | 21.3 | 24.3 | ||||||||||||||||||||||||||||||||
Equity in earnings of ARO | — | — | — | — | 1.9 | 1.9 | ||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (800.5) | $ | (1.1) | $ | 17.3 | $ | 10.6 | $ | (73.8) | $ | (847.5) |
Successor | Predecessor | |||||||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended December 31, 2021 | Three Months Ended March 31, 2021 | ||||||||||||||||||
Interest income | $ | 10.9 | $ | 11.0 | $ | 2.6 | ||||||||||||||
Interest expense | (11.5) | (11.7) | (1.3) | |||||||||||||||||
Reorganization items, net | (1.0) | (4.9) | (52.2) | |||||||||||||||||
Net foreign currency exchange gains | 4.7 | 3.3 | 16.6 | |||||||||||||||||
Net gain on sale of property | 2.5 | 21.0 | 1.4 | |||||||||||||||||
Other | 3.8 | 2.7 | 4.5 | |||||||||||||||||
$ | 9.4 | $ | 21.4 | $ | (28.4) |
Successor | Predecessor | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||
Net cash provided by (used in) operating activities | $ | 0.5 | $ | (31.7) | ||||||||||
Capital expenditures | 38.5 | 6.0 |
Maturity Date | Principal Amount | ||||
October 2027 | $ | 265.0 | |||
October 2028 | 177.7 | ||||
Total | $ | 442.7 |
(in millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
ASSETS | ||||||||||||||
Current assets | $ | 1,094.7 | $ | 1,140.2 | ||||||||||
Amounts due from non-guarantor subsidiaries, current | 693.8 | 785.8 | ||||||||||||
Amounts due from related party, current | 12.0 | 13.1 | ||||||||||||
Noncurrent assets | 1,008.5 | 989.8 | ||||||||||||
Amounts due from non-guarantor subsidiaries, noncurrent | 1,469.7 | 1,469.7 | ||||||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||
Current liabilities | 374.3 | 308.0 | ||||||||||||
Amounts due to non-guarantor subsidiaries, current | 10.9 | 55.3 | ||||||||||||
Amounts due to related party, current | 37.1 | 38.3 | ||||||||||||
Long-term debt | 545.5 | 545.3 | ||||||||||||
Noncurrent liabilities | 444.3 | 438.5 | ||||||||||||
Amounts due to non-guarantor subsidiaries, noncurrent | 1,922.5 | 1,921.6 | ||||||||||||
Noncontrolling interest | 1.4 | 2.6 |
Successor | Predecessor | |||||||||||||
(in millions) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||
Operating revenues | $ | 299.9 | $ | 314.7 | ||||||||||
Operating revenues from related party | 14.3 | 17.8 | ||||||||||||
Operating costs and expenses | 349.5 | 1,148.4 | ||||||||||||
Reorganization expense | (1.0) | (51.6) | ||||||||||||
Loss from continuing operations before income taxes | (65.0) | (849.2) | ||||||||||||
Net income (loss) attributable to noncontrolling interest | 1.2 | (2.4) | ||||||||||||
Net loss | (63.9) | (851.6) |
Exhibit Number | Exhibit | ||||||||||
4.1 | |||||||||||
*10.1 | |||||||||||
10.2 | |||||||||||
*22.1 | |||||||||||
*31.1 | |||||||||||
*31.2 | |||||||||||
**32.1 | |||||||||||
**32.2 | |||||||||||
*101.INS | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
*101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||
*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||
*104 | The cover page of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL (included with Exhibit 101 attachments). |
Valaris Limited | |||||||||||
Date: | May 3, 2022 | /s/ DARIN GIBBINS | |||||||||
Darin Gibbins Interim Chief Financial Officer and Vice President, Investor Relations and Treasurer (principal financial officer) | |||||||||||
/s/ COLLEEN W. GRABLE | |||||||||||
Colleen W. Grable Controller (principal accounting officer) |
Guarantor | State or Other Jurisdiction of Incorporation or Organization | |||||||
Alpha Achiever Company | Cayman Islands | |||||||
Alpha Admiral Company | Cayman Islands | |||||||
Alpha Archer Company | Cayman Islands | |||||||
Alpha Aurora Company | Cayman Islands | |||||||
Alpha Offshore Drilling Services Company | Cayman Islands | |||||||
Alpha Orca Company | Cayman Islands | |||||||
Alpha South Pacific Holding Company | Cayman Islands | |||||||
Atlantic Maritime Services LLC | Delaware (USA) | |||||||
Atwood Australian Waters Drilling Pty Limited | Australia | |||||||
Atwood Oceanics Australia Pty Limited | Australia | |||||||
Atwood Oceanics Pacific Limited | Cayman Islands | |||||||
Atwood Offshore Drilling Limited | Hong Kong | |||||||
Atwood Offshore Worldwide Limited | Cayman Islands | |||||||
ENSCO (Barbados) Limited | Cayman Islands | |||||||
Ensco (Myanmar) Limited | Myanmar | |||||||
ENSCO Arabia Co. Ltd. | Saudi Arabia | |||||||
ENSCO Asia Company LLC | Texas (USA) | |||||||
ENSCO Asia Pacific Pte. Limited | Singapore | |||||||
Ensco Associates Company | Cayman Islands | |||||||
ENSCO Australia Pty. Limited | Australia | |||||||
ENSCO Capital Limited | Cayman Islands / United Kingdom | |||||||
ENSCO Corporate Resources LLC | Delaware (USA) | |||||||
Ensco Deepwater Drilling Limited | England and Wales (UK) | |||||||
ENSCO Deepwater USA II LLC | Delaware (USA) | |||||||
ENSCO Development Limited | Cayman Islands | |||||||
Ensco do Brasil Petróleo e Gás Ltda. | Brazil | |||||||
Ensco Drilling I Ltd. | Cayman Islands | |||||||
ENSCO Drilling Mexico LLC | Delaware (USA) | |||||||
Ensco Endeavors Limited | Cayman Islands / United Kingdom | |||||||
ENSCO Global GmbH | Switzerland | |||||||
Ensco Global II Ltd. | Cayman Islands | |||||||
ENSCO Global Investments LP | England and Wales (UK) | |||||||
Ensco Global IV Ltd | British Virgin Islands | |||||||
ENSCO Global Limited | Cayman Islands / United Kingdom | |||||||
ENSCO Global Resources Limited | England and Wales (UK) | |||||||
Ensco Holdco Limited | England and Wales (UK) | |||||||
ENSCO Holding Company | Delaware (USA) | |||||||
Ensco Holdings I Ltd. | Cayman Islands | |||||||
Ensco Incorporated | Texas (USA) | |||||||
Ensco Intercontinental GmbH | Switzerland | |||||||
ENSCO International Incorporated | Delaware (USA) | |||||||
Ensco International Ltd. | British Virgin Islands / United Kingdom | |||||||
ENSCO Investments LLC | Nevada (USA) / United Kingdom | |||||||
Ensco Jersey Finance Limited | Jersey / United Kingdom | |||||||
ENSCO Limited | Cayman Islands |
Ensco Management Corp | British Virgin Islands | |||||||
ENSCO Maritime Limited | Bermuda | |||||||
Ensco Mexico Services S.de R.L. | Mexico | |||||||
Ensco Ocean 2 Company | Cayman Islands | |||||||
ENSCO Oceanics LLC | Delaware (USA) | |||||||
ENSCO Oceanics International Company | Cayman Islands | |||||||
ENSCO Offshore LLC | Delaware (USA) | |||||||
ENSCO Offshore International Company | Cayman Islands | |||||||
ENSCO Offshore International Holdings Limited | Cayman Islands / United Kingdom | |||||||
ENSCO Offshore International Inc. | Marshall Islands | |||||||
Ensco Offshore International LLC | Delaware (USA) | |||||||
Ensco Offshore Petróleo e Gás Ltda. | Brazil | |||||||
ENSCO Offshore U.K. Limited | England and Wales (UK) | |||||||
ENSCO Overseas Limited | Cayman Islands | |||||||
ENSCO Services Limited | England and Wales (UK) | |||||||
Ensco Transcontinental II LP | England and Wales (UK) | |||||||
Ensco Transnational I Limited | Cayman Islands | |||||||
Ensco Transnational III Limited | Cayman Islands | |||||||
ENSCO U.K. Limited | England and Wales (UK) | |||||||
Ensco UK Drilling Limited | England and Wales (UK) | |||||||
Ensco Universal Holdings I Ltd. | Cayman Islands / United Kingdom | |||||||
Ensco Universal Holdings II Ltd. | Cayman Islands / United Kingdom | |||||||
ENSCO Universal Limited | England and Wales (UK) | |||||||
Ensco Vistas Limited | Cayman Islands | |||||||
Ensco Worldwide GmbH | Switzerland | |||||||
EnscoRowan Ghana Drilling Limited | Ghana | |||||||
Great White Shark Limited | Gibraltar | |||||||
Green Turtle Limited | Gibraltar | |||||||
International Technical Services LLC | Delaware (USA) | |||||||
Manatee Limited | Malta | |||||||
Manta Ray Limited | Malta | |||||||
Marine Blue Limited | Gibraltar | |||||||
Offshore Drilling Services LLC | Delaware (USA) | |||||||
Pacific Offshore Labor Company | Cayman Islands | |||||||
Petroleum International Pte. Ltd. | Singapore | |||||||
Pride Global II Ltd | British Virgin Islands | |||||||
Pride International LLC | Delaware (USA) | |||||||
Pride International Management Co. LP | Texas (USA) | |||||||
Ralph Coffman Cayman Limited | Cayman | |||||||
Ralph Coffman Limited | Gibraltar | |||||||
Ralph Coffman Luxembourg S.à r.l. | Luxembourg | |||||||
RCI International, Inc. | Cayman Islands | |||||||
RD International Services Pte. Ltd. | Singapore | |||||||
RDC Arabia Drilling, Inc. | Cayman Islands | |||||||
RDC Holdings Luxembourg S.à r.l. | Luxembourg | |||||||
RDC Malta Limited | Malta | |||||||
RDC Offshore Luxembourg S.à r.l. | Luxembourg | |||||||
RDC Offshore Malta Limited | Malta | |||||||
RoCal Cayman Limited | Cayman Islands | |||||||
Rowan 240C#3, Inc. | Cayman Islands | |||||||
Rowan Companies Limited | England and Wales (UK) | |||||||
Rowan Companies, LLC | Delaware (USA) | |||||||
Rowan Drilling (Gibraltar) Limited | Gibraltar | |||||||
Rowan Drilling (Trinidad) Limited | Cayman Islands | |||||||
Rowan Drilling (U.K.) Limited | Scotland (UK) |
Rowan Drilling Services Limited | Gibraltar | |||||||
Rowan Financial Holdings S.à r.l. | Luxembourg | |||||||
Rowan International Rig Holdings S.à r.l. | Luxembourg | |||||||
Rowan Marine Services LLC | Texas (USA) | |||||||
Rowan N-Class (Gibraltar) Limited | Gibraltar | |||||||
Rowan No. 1 Limited | England and Wales (UK) | |||||||
Rowan No. 2 Limited | England and Wales (UK) | |||||||
Rowan Norway Limited | Gibraltar | |||||||
Rowan Offshore (Gibraltar) Limited | Gibraltar | |||||||
Rowan Offshore Luxembourg S.à r.l. | Luxembourg | |||||||
Rowan Rigs S.à r.l. | Luxembourg | |||||||
Rowan S. de R.L. de C.V. | Mexico | |||||||
Rowan Services LLC | Delaware (USA) | |||||||
Rowan US Holdings (Gibraltar) Limited | Gibraltar | |||||||
Rowandrill, LLC | Texas (USA) | |||||||
Valaris Holdco 1 Limited | Bermuda | |||||||
Valaris Holdco 2 Limited | Bermuda | |||||||
Valaris United LLC | Delaware (USA) |
Affiliate Pledgee | Class of Security | Percentage Pledged | ||||||||||||||||||
Alpha Achiever Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Admiral Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Archer Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Aurora Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Falcon Drilling Company | Ordinary Shares; Class A Shares | 100.00% | ||||||||||||||||||
Alpha Int’l Drilling Company S.à r.l | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Mako Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Manta Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Offshore Drilling (S) Pte Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Offshore Drilling Services Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Offshore International Leasing Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha Orca Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Alpha South Pacific Holding Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Atlantic Maritime Services LLC | Units | 100.00% | ||||||||||||||||||
Atwood Advantage S.à r.l. | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Beacon S.à r.l. | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Drilling LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Hunter LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Malta Holding Company Limited | Class A Shares | > 99.00% | ||||||||||||||||||
Atwood Oceanics Drilling Mexico S. de R.L. de C.V. | Partnership Interest | 99.00% | ||||||||||||||||||
Atwood Oceanics Global Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Oceanics Pacific Limited | Ordinary Shares; Class A Shares | 100.00% | ||||||||||||||||||
Atwood Offshore Labor Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Atwood Offshore Worldwide Limited | Ordinary Shares; Class A Shares | 64.12% | ||||||||||||||||||
Drillquest Offshore Company | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO (Barbados) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO (Bermuda) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco (Myanmar) Limited | Ordinary Shares | 100.00% |
Ensco (Thailand) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Arabia Company Limited | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Ensco Asia Company LLC | Units | 100.00% | ||||||||||||||||||
Ensco Asia Pacific Pte. Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Associates Company | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Australia Pty Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Capital Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Corporate Resources LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO de Venezuela, S.R.L. | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Deepwater Drilling Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Deepwater USA II LLC | Non-Assessable Member Units | 100.00% | ||||||||||||||||||
Ensco do Brasil Petróleo e Gás Ltda. | Quotas | 100.00% | ||||||||||||||||||
ENSCO Drilling (Caribbean), Inc. | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Drilling Company (Nigeria) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Drilling Company LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Drilling I Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Drilling Mexico LLC | Units | 100.00% | ||||||||||||||||||
Ensco Endeavors Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Gerudi (M) Sdn. Bhd. | Ordinary Shares | 49.00% | ||||||||||||||||||
ENSCO Global GmbH | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Ensco Global II Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Global Investment LP | Partnership Interests | 95.00% | ||||||||||||||||||
ENSCO Global IV Ltd. | Shares | 100.00% | ||||||||||||||||||
Ensco Global Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Global Resources Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Holdco Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Holding Company | Shares | 100.00% | ||||||||||||||||||
Ensco Holdings I Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Holland B.V. | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Incorporated | Common Stock | 100.00% | ||||||||||||||||||
ENSCO Intercontinental GmbH | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Ensco International Incorporated | Common Stock | 100.00% | ||||||||||||||||||
Ensco International Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Investments LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Labuan Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Maritime Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Mexico Services, S. de R.L. de C.V. | Partnership Interests | 100.00% | ||||||||||||||||||
Ensco North America LLC | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
ENSCO Ocean 1 Company | Ordinary Shares | 88.29% | ||||||||||||||||||
ENSCO Ocean 2 Company | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Oceanics Company LLC | Units | 100.00% | ||||||||||||||||||
Ensco Oceanics International Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Offshore LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Offshore International Company | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Offshore International Holdings Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Offshore International Inc. | Registered Shares | 100.00% | ||||||||||||||||||
Ensco Offshore International LLC | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Ensco Offshore Petróleo e Gás Ltda. | Quotas | 100.00% | ||||||||||||||||||
Ensco Offshore Services LLC | Units | 100.00% | ||||||||||||||||||
ENSCO Offshore U.K. Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Overseas Limited | Ordinary Shares | 100.00% |
Ensco Services Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Services LLC | Units | 100.00% | ||||||||||||||||||
Ensco South Pacific LLC | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Ensco Transcontinental I LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Transcontinental II LLC | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Transnational I Ltd. | Ordinary Share | 100.00% | ||||||||||||||||||
Ensco Transnational II Ltd. | Ordinary Share | 100.00% | ||||||||||||||||||
Ensco Transnational III Ltd. | Ordinary Share | 100.00% | ||||||||||||||||||
Ensco Transnational Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO U.K. Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco UK Drilling Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Universal Holdings I Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Universal Holdings II Ltd. | Ordinary Shares | 6.25% | ||||||||||||||||||
ENSCO Universal Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Vistas Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
ENSCO Worldwide GmbH | Ordinary Shares | 100.00% | ||||||||||||||||||
Ensco Worldwide Holdings Ltd. | Ordinary Shares | 100.00% | ||||||||||||||||||
Forasub B.V. | Ordinary Shares | 100.00% | ||||||||||||||||||
Great White Shark Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Green Turtle Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Manatee Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Manta Ray Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Offshore Drilling Services LLC | Units | 100.00% | ||||||||||||||||||
P.T. ENSCO Sarida Offshore | Ordinary Shares | 49.00% | ||||||||||||||||||
Pride Arabia Co. Ltd. | Ordinary Shares | 25.00% | ||||||||||||||||||
Pride Global II Ltd. | Shares | 100.00% | ||||||||||||||||||
Pride Global Offshore Nigeria Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Pride International LLC | Shares | 100.00% | ||||||||||||||||||
Ralph Coffman Cayman Limited | N/A (Uncertificated) | 100.00% | ||||||||||||||||||
Ralph Coffman Luxembourg S.à r.l. | Percentage Ownership Interests | 100.00% | ||||||||||||||||||
RD International Services Pte. Ltd. | Shares | 100.00% | ||||||||||||||||||
RDC Arabia Drilling, Inc. | Ordinary Shares | 100.00% | ||||||||||||||||||
RDC Holdings Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
RDC Malta Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
RDC Offshore Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
RDC Offshore Malta Limited | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Angola Limitada | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan California S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Deepwater Drilling (Gibraltar) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan do Brasil Servicos de Perfuracao Ltda. | Percentage Ownership Interest | > 99.00% | ||||||||||||||||||
Rowan Drilling (Gibraltar) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Drilling (Trinidad) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Drilling (U.K.) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Drilling Cyprus Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Drilling Services Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Drilling Services Nigeria Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Egypt Petroleum Services L.L.C. | Quotas | 50.00% | ||||||||||||||||||
Rowan Finanz S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
ROWAN Global Drilling Services Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Holdings Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan International Rig Holdings S.à r.l. | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Marine Services LLC | LLC Interests | 100.00% | ||||||||||||||||||
Rowan Middle East, Inc. | Rowan Middle East, Inc. | 100.00% |
Rowan N-Class (Gibraltar) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan No. 2 Limited | Shares | 100.00% | ||||||||||||||||||
Rowan North Sea, Inc. | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Norway Limited (FKA Rowan (Gibraltar) Limited) | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Offshore (Gibraltar) Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Offshore Luxembourg S.à r.l. | Shares | 100.00% | ||||||||||||||||||
Rowan Relentless Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Reliance Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Renaissance Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Resolute Luxembourg S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Rex Limited (Cayman) | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowan Rigs S.à r.l. | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Services LLC | Percentage Ownership Interest | 100.00% | ||||||||||||||||||
Rowan Standard Ghana Limited | Ordinary Shares | 49.00% | ||||||||||||||||||
Rowan US Holdings (Gibraltar) Limited | Ordinary Shares | 73.86% | ||||||||||||||||||
Rowan, S. de R.L. de C.V. | Social Part | 99.00% | ||||||||||||||||||
Rowandrill Labuan Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Rowandrill Malaysia Sdn. Bhd. | Ordinary Shares | 49.00% | ||||||||||||||||||
Swiftdrill Offshore Drilling Services Company | Ordinary Shares | 100.00% | ||||||||||||||||||
Valaris Holdco 1 Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Valaris Holdco 2 Limited | Ordinary Shares | 100.00% | ||||||||||||||||||
Valaris United LLC | Shares | 100.00% |
Dated: | May 3, 2022 | ||||||||||
/s/ Anton Dibowitz | |||||||||||
Anton Dibowitz Director, President and Chief Executive Officer |
Dated: | May 3, 2022 | ||||||||||
/s/ Darin Gibbins | |||||||||||
Darin Gibbins Interim Chief Financial Officer and Vice President, Investor Relations and Treasurer (principal financial officer) |
/s/ Anton Dibowitz | ||||||||
Anton Dibowitz Director, President and Chief Executive Officer | ||||||||
May 3, 2022 |
/s/ Darin Gibbins | ||||||||
Darin Gibbins Interim Chief Financial Officer and Vice President, Investor Relations and Treasurer (principal financial officer) | ||||||||
May 3, 2022 |
Condensed Consolidated Statement Of Operations (Parenthetical) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Income Statement [Abstract] | |
Contractual interest expense | $ 100.3 |
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
NET LOSS | $ (39.8) | $ (907.6) |
OTHER COMPREHENSIVE LOSS, NET | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0.0 | 0.1 |
Reclassification of net gains on derivative instruments from other comprehensive loss into net loss | 0.0 | 5.6 |
Other | (0.3) | 0.2 |
NET OTHER COMPREHENSIVE LOSS | (0.3) | (5.3) |
COMPREHENSIVE LOSS | (40.1) | (912.9) |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1.2 | (2.4) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS | $ (38.9) | $ (915.3) |
Condensed Consolidated Balance Sheets (Parenthetical) |
Mar. 31, 2022
$ / shares
shares
|
---|---|
Common stock, par value per share (in dollars per share or pounds sterling per share) | $ / shares | $ 0.01 |
Common shares, shares authorized (in shares) | 700,000,000 |
Common shares, shares issued (in shares) | 75,000,000 |
Preferred Stock | |
Common stock, par value per share (in dollars per share or pounds sterling per share) | $ / shares | $ 0.01 |
Common shares, shares authorized (in shares) | 150,000,000 |
Common shares, shares issued (in shares) | 0 |
Unaudited Condensed Consolidated Financial Statements |
3 Months Ended |
---|---|
Mar. 31, 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 months ended March 31, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022. 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. 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 Form 10-K for the year ended December 31, 2021, filed with the SEC on February 22, 2022, 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 2021 Form 10-K, 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 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 Contracts 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.
|
Revenue from Contracts with Customers |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 for the mobilization, demobilization and capital upgrades of our rigs. Our customers bear substantially all of the costs of constructing the well and supporting drilling operations, as well as the economic risk relative to the success of the well. Our drilling 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 March 31, 2022 was between approximately 1 month and 3.5 years. 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 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. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. 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):
Changes in contract assets and liabilities during the period are as follows (in millions):
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 $37.2 million and $31.4 million as of March 31, 2022 and December 31, 2021, respectively. For the Successor, during the three months ended March 31, 2022, amortization of such costs totaled $11.7 million. For the Predecessor, during the three months ended March 31, 2021, amortization of such costs totaled $5.8 million. 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 $7.6 million and $3.3 million as of March 31, 2022 and December 31, 2021, respectively. For the Successor, during the three months ended March 31, 2022, amortization of such costs totaled $0.3 million. For the Predecessor, during the three months ended March 31, 2021, amortization of such costs totaled $2.6 million. 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 expected future amortization of our contract liabilities, or in the case of our contract liabilities related to our bareboat charter arrangements with ARO, the amount is reflected at the end of the lease term, and deferred costs recorded as of March 31, 2022 is set forth in the table below (in millions):
|
Equity Method Investment In ARO Equity Method Investment In ARO |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 March 31, 2022, ARO owns seven jackup rigs, has ordered two newbuild jackup rigs, and leases eight rigs from us through bareboat charter arrangements (the "Lease Agreements") whereby substantially all operating costs are incurred by ARO. At March 31, 2022, all of the leased rigs were operating under three-year drilling contracts, or related extensions, 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):
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):
Related-Party Transactions Revenues recognized by us related to the Lease Agreements are as follows (in millions):
(1) Revenues presented above are included in our Other segment in our segment disclosures. See "Note 12 - Segment Information" for additional information. Amounts receivable from ARO totaled $11.6 million and $12.1 million as of March 31, 2022 and December 31, 2021, respectively, and are included in Accounts receivable, net, on our Condensed Consolidated Balance Sheets. We had $13.9 million and $37.1 million of Contract liabilities and Accounts payable, respectively, related to the Lease Agreements as of March 31, 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 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 March 31, 2022 and December 31, 2021, the carrying amount of the long-term notes receivable from ARO was $256.8 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 March 31, 2022 (Successor), interest income totaled $10.5 million of which $7.7 million pertains to non-cash amortization of the discount on the shareholder notes. During the three months ended March 31, 2021 (Predecessor), interest income totaled $2.6 million. As of March 31, 2022, our interest receivable from ARO was $2.9 million, which is included in Accounts receivable, net, on our Condensed Consolidated Balance Sheet. 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.
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
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 March 31, 2022, the estimated fair value of our notes receivable from ARO was $274.9 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 March 31, 2022 and December 31, 2021.
|
Property and Equipment |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in millions):
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. 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 March 31, 2022, or December 31, 2021. VALARIS 67 was sold during the three months ended March 31, 2022 (Successor) 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 three months ended March 31, 2022 (Successor). During the three months ended March 31, 2021 (Predecessor), our Australia office building was sold, resulting in an immaterial pre-tax gain, which is included in Other, net on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 (Predecessor). Subsequent to March 31, 2022, we reached an agreement for the sale of VALARIS 113 and VALARIS 114, resulting in an expected pre-tax gain on sale to be recorded in the second quarter of 2022 of approximately $120 million.
|
Pension and Other Postretirement Benefits |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
(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. As a result, we currently expect to contribute or directly pay approximately $4.2 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.
|
Earnings Per Share |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (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 warrants, restricted stock unit awards and performance stock unit awards and for the Predecessor includes the effect of all potentially dilutive stock options and excludes non-vested shares. For the Successor, during the three months ended March 31, 2022, 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. Additionally, for the Predecessor, during the three months ended March 31, 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 three months ended March 31, 2022, loss from continuing operations attributable to our shares was $38.6 million. For the Predecessor, during the three months ended March 31, 2021, loss from continuing operations attributable to Legacy Valaris and Legacy Valaris shares was $910.0 million. No amounts were allocated to non-vested share awards in this period given that losses are not allocated to non-vested share awards. Anti-dilutive share awards totaling 1.0 million and 300,000 for the three months ended March 31, 2022 (Successor) and the three months ended March 31, 2021 (Predecessor), respectively, were excluded from the computation of diluted EPS. Due to the net loss position, potentially dilutive share awards are excluded from the computation of diluted EPS. We have 5,470,972 warrants outstanding (the "Warrants") as of March 31, 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 the three months ended March 31, 2022.
|
Debt |
3 Months Ended |
---|---|
Mar. 31, 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 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 applicable 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.
|
Shareholders Equity (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | Shareholders' Equity Activity in our various shareholders' equity accounts for the three months ended March 31, 2022 (Successor) and the three months ended March 31, 2021 (Predecessor) were as follows (in millions, except per share amounts):
|
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 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 months ended March 31, 2022 (Successor) and three months ended March 31, 2021 (Predecessor). We used a discrete effective tax rate method to calculate income taxes for the three months ended March 31, 2022 (Successor) and March 31, 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 benefit for the three months ended March 31, 2022 (Successor) was $14.5 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. Discrete income tax expense for the three months ended March 31, 2021 (Predecessor) was $20.3 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. Excluding the aforementioned discrete tax items, income tax expense for the three months ended March 31, 2022 (Successor) and the three months ended March 31, 2021 (Predecessor) was $13.8 million and $11.4 million, respectively.
|
Contingencies |
3 Months Ended |
---|---|
Mar. 31, 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 March 31, 2022 (Successor) totaled $33.6 million and are issued under facilities provided by various banks and other financial institutions. Obligations under these letters of credit are not normally called, as we typically comply with the underlying performance requirement. As of March 31, 2022 (Successor), we had collateral deposits in the amount of $27.1 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.
|
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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. Upon emergence, we ceased allocation of our onshore support costs included within Contract drilling expenses to our operating segments for purposes of measuring segment operating income (loss) and as such, those costs are included in “Reconciling Items”. We have adjusted the historical period to conform with current period presentation. Further, General and administrative expense and Depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "Reconciling Items." We measure segment assets as Property and equipment, net. The full operating results included below for ARO are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. See "Note 3 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. Segment information for the three months ended March 31, 2022 (Successor) and March 31, 2021 (Predecessor), respectively, are presented below (in millions). Three Months Ended March 31, 2022 (Successor)
Three Months Ended March 31, 2021 (Predecessor)
Information about Geographic Areas As of March 31, 2022, the geographic distribution of our and ARO's drilling rigs was as follows:
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.
|
Supplemental Financial Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
Other current assets consisted of the following (in millions):
Other assets consisted of the following (in millions):
Accrued liabilities and other consisted of the following (in millions):
Other liabilities consisted of the following (in millions):
Accumulated other comprehensive income (loss) consisted of the following (in millions):
Condensed Consolidated Statements of Operations Information Other, net, consisted of the following (in millions):
Condensed Consolidated Statement of Cash Flows Information Our restricted cash of $30.0 million and $35.9 million at March 31, 2022 and December 31, 2021, respectively, consists primarily of $27.1 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:
(1)During the three months ended March 31, 2022 (Successor), 43% of the revenues provided by BP were attributable to our Floaters segment, 13% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs. During the three months ended March 31, 2021 (Predecessor), 43% of the revenues provided by BP were attributable to our Floaters segment, 15% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs. (2) During the three months ended March 31, 2022 (Successor), 67% of the revenues provided by Shell were attributable to our Floaters segment and 33% of the revenues were attributable to our Jackups segment. During the three months ended March 31, 2021 (Predecessor), 62% of the revenues provided by Shell were attributable to our Floaters segment and 38% of the revenues were attributable to our Jackups segment. (3) During the three months ended March 31, 2022 (Successor), 58% of the revenues provided by Eni were attributable to our Jackups segment and 42% of the revenues were attributable to our Floaters segment. During the three months ended March 31, 2021 (Predecessor), 69% of the revenues provided by Eni were attributable to our Floaters segment and 31% of the revenues were attributable to our Jackups segment. 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):
(1)During the three months ended March 31, 2022 (Successor) and 2021 (Predecessor), revenues earned in the United Kingdom and Norway were attributable to our Jackups segment. (2)During the three months ended March 31, 2022 (Successor), 41% and 13% 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 three months ended March 31, 2021 (Predecessor), 65% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and the remaining revenues were primarily attributable to our managed rigs. (3)During the three months ended March 31, 2022 (Successor), 62% 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 three months ended March 31, 2021 (Predecessor), 57% 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. (4)During the three months ended March 31, 2022 (Successor), 93% of the revenues earned in Mexico were attributable to our Jackups segment and the remaining revenues were attributable to our Floaters segment. During the three months ended March 31, 2021 (Predecessor), 56% of the revenues earned in Mexico were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment.
|
Unaudited Condensed Consolidated Financial Statements (Policies) |
3 Months Ended |
---|---|
Mar. 31, 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 months ended March 31, 2022 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2022. 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.
|
New Accounting Pronouncements | New 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 Contracts 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.
|
Revenue from Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
Changes in contract assets and liabilities during the period are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | xpected future amortization of our contract liabilities, or in the case of our contract liabilities related to our bareboat charter arrangements with ARO, the amount is reflected at the end of the lease term, and deferred costs recorded as of March 31, 2022 is set forth in the table below (in millions):
|
Equity Method Investment In ARO (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | Summarized financial information for ARO is as follows (in millions):
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Revenues recognized by us related to the Lease Agreements are as follows (in millions):
(1) Revenues presented above are included in our Other segment in our segment disclosures. See "Note 12 - Segment Information" for additional information.
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
|
Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property And Equipment | Property and equipment consisted of the following (in millions):
|
Pension and Other Postretirement Benefits (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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):
(1)Included in Other, net, in our Condensed Consolidated Statements of Operations.
|
Shareholders Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 months ended March 31, 2022 (Successor) and the three months ended March 31, 2021 (Predecessor) were as follows (in millions, except per share amounts):
|
Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Segment Reporting Information | Three Months Ended March 31, 2022 (Successor)
Three Months Ended March 31, 2021 (Predecessor)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Geographic Distribution Of Rigs By Segment | As of March 31, 2022, the geographic distribution of our and ARO's drilling rigs was as follows:
|
Supplemental Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | Accounts receivable, net, consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other current assets consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Net | Other assets consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities and other consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other liabilities consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income (loss) consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income, by Component | Other, net, consisted of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | Consolidated revenues with customers that individually contributed 10% or more of revenue were as follows:
(1)During the three months ended March 31, 2022 (Successor), 43% of the revenues provided by BP were attributable to our Floaters segment, 13% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs. During the three months ended March 31, 2021 (Predecessor), 43% of the revenues provided by BP were attributable to our Floaters segment, 15% of the revenues were attributable to our Jackups segment and the remaining were attributable to our managed rigs. (2) During the three months ended March 31, 2022 (Successor), 67% of the revenues provided by Shell were attributable to our Floaters segment and 33% of the revenues were attributable to our Jackups segment. During the three months ended March 31, 2021 (Predecessor), 62% of the revenues provided by Shell were attributable to our Floaters segment and 38% of the revenues were attributable to our Jackups segment. (3) During the three months ended March 31, 2022 (Successor), 58% of the revenues provided by Eni were attributable to our Jackups segment and 42% of the revenues were attributable to our Floaters segment. During the three months ended March 31, 2021 (Predecessor), 69% of the revenues provided by Eni were attributable to our Floaters segment and 31% of the revenues were attributable to our Jackups segment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | Consolidated revenues for locations that individually had 10% or more of revenue are as follows (in millions):
(1)During the three months ended March 31, 2022 (Successor) and 2021 (Predecessor), revenues earned in the United Kingdom and Norway were attributable to our Jackups segment. (2)During the three months ended March 31, 2022 (Successor), 41% and 13% 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 three months ended March 31, 2021 (Predecessor), 65% of the revenues earned in U.S. Gulf of Mexico were attributable to our Floaters segment and the remaining revenues were primarily attributable to our managed rigs. (3)During the three months ended March 31, 2022 (Successor), 62% 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 three months ended March 31, 2021 (Predecessor), 57% 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. (4)During the three months ended March 31, 2022 (Successor), 93% of the revenues earned in Mexico were attributable to our Jackups segment and the remaining revenues were attributable to our Floaters segment. During the three months ended March 31, 2021 (Predecessor), 56% of the revenues earned in Mexico were attributable to our Floaters segment and the remaining revenues were attributable to our Jackups segment.
|
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net | $ 44.8 | ||
Upfront Rig Mobilizations And Certain Contract Preparation [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net | 37.2 | $ 31.4 | |
Capitalized Contract Cost, Amortization | 11.7 | $ 5.8 | |
Deferred Certification Costs | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net | 7.6 | $ 3.3 | |
Capitalized Contract Cost, Amortization | $ 0.3 | $ 2.6 | |
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 6 months |
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Current contract assets | $ 3.6 | $ 0.3 |
Noncurrent contract assets | 0.1 | 0.0 |
Current contract liabilities (deferred revenue) | 56.3 | 45.8 |
Noncurrent contract liabilities (deferred revenue) | $ 9.7 | $ 10.8 |
Revenue from Contracts with Customers Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | 5 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Contract Assets | |||
Fair value of contracts with customers | $ 3.7 | $ 0.3 | |
Revenue recognized in advance of right to bill customer | 3.4 | ||
Contract Liabilities | |||
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance | $ (12.1) | ||
Fair value of contracts with customers | 66.0 | $ 56.6 | |
Increase due to cash received | 22.3 | ||
Decrease due to amortization of deferred revenue that was added during the period | $ (0.8) |
Equity Method Investment in ARO - Schedule of Related Parties (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
ARO | ||
Schedule of Equity Method Investments [Line Items] | ||
Lease revenue | $ 14.2 | $ 16.6 |
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Millions |
Mar. 31, 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 | $ 545.5 | $ 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 | 274.9 | |
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 | $ 569.1 | $ 575.7 |
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
PROPERTY AND EQUIPMENT, AT COST | $ 1,018.8 | $ 957.0 |
Drilling rigs and equipment | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY AND EQUIPMENT, AT COST | 938.7 | 886.9 |
Work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY AND EQUIPMENT, AT COST | 42.6 | 35.6 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
PROPERTY AND EQUIPMENT, AT COST | $ 37.5 | $ 34.5 |
Property and Equipment (Narratives) (Details) - USD ($) |
3 Months Ended | 4 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Apr. 30, 2021 |
Dec. 31, 2021 |
|
Property, Plant and Equipment [Line Items] | |||||
Asset Impairment Charges | $ 0 | $ 756,500,000 | |||
Gain (Loss) on Disposition of Other Assets | $ 2,000,000 | ||||
Operating Segments [Member] | Jackups | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset Impairment Charges | 0 | ||||
Operating Segments [Member] | Jackups | Subsequent Event | V113 & V114 | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) on Disposition of Other Assets | $ 120 | ||||
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) | $ 5,600,000 | ||||
Floaters | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset Impairment Charges | $ 756,500,000 | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 26,000,000 |
Pension and other Postretirement Benefits - Narrative (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Retirement Benefits [Abstract] | ||
Defined Benefit Plan, Interest Cost | $ 5.5 | $ 5.0 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (9.5) | (9.1) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0.0 | 0.1 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (4.0) | $ (4.0) |
Pension and Other Postretirement Benefits (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 4.2 |
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Earnings Per Share [Abstract] | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (38.6) | $ (910.0) | |
Antidilutive share options excluded from computation of diluted earnings per share (in shares) | 1,000,000 | 300,000 | |
Class of Warrant or Right, Outstanding | 5,470,972 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 131.88 | ||
Warranted, Period Exercisable | 7 years |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Discrete Income Tax Expense (Benefit) | $ 14.5 | $ (20.3) |
Income Tax Expense (Benefit) Excluding Discrete Items | $ 13.8 | $ 11.4 |
Contingencies (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 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 | $ 33.6 | |
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 27.1 | $ 31.1 |
Supplemental Financial Information (Accounts Receivable, Net) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 455.6 | $ 460.6 |
Allowance for doubtful accounts | (16.3) | (16.4) |
Accounts receivable, net | 439.3 | 444.2 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 288.2 | 296.8 |
Income Tax Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | 150.9 | 151.1 |
Other Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 16.5 | $ 12.7 |
Supplemental Financial Information (Other Current Assets) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Supplemental Financial Information [Abstract] | ||
Prepaid taxes | $ 42.8 | $ 44.4 |
Prepaid expenses | 21.4 | 23.1 |
Elimination of other deferred costs | 31.8 | 26.9 |
Other | 29.7 | 23.4 |
Other current assets | $ 125.7 | $ 117.8 |
Supplemental Financial Information (Other Assets, Net) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Supplemental Financial Information [Abstract] | ||
Tax receivables | $ 65.6 | $ 64.8 |
Deferred Income Tax Assets, Net | 60.8 | 59.7 |
Right-of-use assets | 22.1 | 20.5 |
Other | 38.1 | 31.0 |
Other assets, net | $ 186.6 | $ 176.0 |
Supplemental Financial Information (Accrued Liabilities) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Supplemental Financial Information [Abstract] | ||
Personnel costs | $ 58.2 | $ 64.6 |
Income and other taxes payable | 48.6 | 45.7 |
Deferred revenue | 56.3 | 45.8 |
Accrued interest | 18.9 | 7.6 |
Operating Lease, Liability, Current | 9.7 | 10.0 |
Other | 20.4 | 22.5 |
Accrued liabilities and other | $ 212.1 | $ 196.2 |
Supplemental Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Supplemental Financial Information [Abstract] | ||
Unrecognized tax benefits (inclusive of interest and penalties) | $ 285.2 | $ 320.2 |
Pension and other post-retirement benefits | 199.2 | 204.0 |
Other | 60.4 | 56.9 |
Other liabilities | $ 544.8 | $ 581.1 |
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Supplemental Financial Information [Abstract] | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (9.1) | $ (9.1) |
Currency translation adjustment | (0.3) | 0.0 |
Accumulated other comprehensive loss | $ (9.4) | $ (9.1) |
Supplemental Financial Information (Other Income) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Supplemental Financial Information [Abstract] | ||
Currency translation adjustments | $ 4.7 | $ 16.6 |
Net periodic pension income, excluding service cost | 4.0 | 4.0 |
Gain (Loss) on Sale of Properties | 2.5 | 1.4 |
Other Nonoperating Expense | (0.2) | (0.5) |
Other Nonoperating Income (Expense) | $ 11.0 | $ 22.5 |
/F^?P'1ZI'M/<>V(7;_"UG?&;D:AML6,F(I!7PXZTVUQ+*ST
M3J*#<<\6QJ:@C['OB.*@0CIP(OT,%1==?85P031R-&/RP"4SN/D63:6DRIH!
M@P:@MAVY1=#O.H /*^!#)_!I' OZBC-A,N;'7&D7Y)X(NN=I0H5$.5?6P ^;
MJ 8#&_RFX!G