Segments and Geographic Area Analysis

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segments and Geographic Area Analysis

18. Segments and Geographic Area Analysis

We provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations. However, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics due to the nature of the revenue-earning process as it relates to the offshore drilling industry over the operating lives of our drilling rigs and other qualitative factors such as (i) the nature of services provided (contract drilling), (ii) similarity in operations (interchangeable rig crews and shared management and marketing, engineering, marine and maintenance support), (iii) similar regulatory environment (depending on customer and/or location) and (iv) similar contractual arrangements with customers.

Our drilling rigs are highly mobile and may be moved to other markets throughout the world in response to market conditions or customer needs. At December 31, 2022, our active drilling rigs were located offshore four countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country or areas where the services were performed.

The following tables provide information about disaggregated revenue by equipment-type and country (in thousands):

	Successor
	Year Ended December 31, 2022
	Total Contract Drilling Revenues		Revenues Related to Reimbursable Expenses		Total
United States	$	322,021	$	75,069	$	397,090
Senegal		154,574		11,929		166,503
Australia		92,939		14,082		107,021
United Kingdom		66,116		8,478		74,594
Brazil		80,185		—		80,185
Myanmar		8,909		6,976		15,885
Total	$	724,744	$	116,534	$	841,278

	Successor
	Period from April 24, 2021 through December 31, 2021
	Total Contract Drilling Revenues		Revenues Related to Reimbursable Expenses		Total
United States	$	194,912	$	55,471	$	250,383
Senegal		48,758		10,110		58,868
Australia		95,601		15,132		110,733
United Kingdom		55,245		3,859		59,104
Brazil		42,215		—		42,215
Myanmar		28,597		6,166		34,763
Total	$	465,328	$	90,738	$	556,066

	Predecessor
	Period from January 1, 2021 through April 23, 2021
	Total Contract Drilling Revenues		Revenues Related to Reimbursable Expenses		Total
United States	$	93,215	$	7,048	$	100,263
Australia		17,031		4,697		21,728
United Kingdom		27,967		2,300		30,267
Brazil		3,421		—		3,421
Myanmar		11,730		1,970		13,700
Total	$	153,364	$	16,015	$	169,379

	Predecessor
	Year Ended December 31, 2020
	Total Contract Drilling Revenues		Revenues Related to Reimbursable Expenses			Total
United States	$	321,150	$	13,262		$	334,412
Australia		63,876		13,271			77,147
United Kingdom		112,121		8,929			121,050
Brazil		155,436		(18	)		155,418
Malaysia (1)		40,170		5,490			45,660
Total	$	692,753	$	40,934		$	733,687

(1)Revenue earned by the Ocean Monarch during a standby period in Malaysia while awaiting clearance to begin operations in Myanmar waters.

The following table presents the locations of our long-lived tangible assets by country as of December 31, 2022, 2021 and 2020. A substantial portion of our assets is comprised of rigs that are mobile and, therefore, asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the country in which they were expected to operate (in thousands).

	Successor				Predecessor
	December 31,		December 31,		December 31,
	2022		2021 (1) (2)		2020 (2)
Drilling and other property and equipment, net:
United States	$	362,813	$	559,288	$	2,162,488
International:
Senegal		352,655		188,694		—
United Kingdom		256,837		98,338		248,500
Australia		91,089		106,173		722,389
Brazil		69,596		76,383		87,543
Spain (3)		—		142,930		686,436
Myanmar		—		2,258		207,451
Other countries (4)		8,918		1,831		8,002
		779,095		616,607		1,960,321
Total	$	1,141,908	$	1,175,895	$	4,122,809

(1)Balances reflect a fair value adjustment to “Drilling and other property and equipment” and the elimination of accumulated depreciation aggregating $(2,712.1) million. In addition, the adjustment reflects the fair

value adjustment of $(8.4) million to the BOP finance lease assets by setting the ROU assets equal to the ROU liabilities less the prepaid amounts. See Note 3 “Fresh Start Accounting.”

(2)During the Predecessor period from January 1, 2021 through April 23, 2021 and the Successor period from April 24, 2021 through December, 31, 2021, we recorded aggregate impairment losses of $197.0 million and $132.4 million, respectively, to write down certain of our drilling rigs and related equipment with indicators of impairment to their estimated recoverable amounts. During the Predecessor year 2020, we recorded aggregate impairment losses of $842.0 million to write down certain of our drilling rigs and related equipment with indicators of impairment to their estimated recoverable amounts.

(3)The Ocean GreatWhite was relocated to the U.K. in 2022 for reactivation and contract preparation activities.

(4)Countries with long-lived assets that individually comprise less than 5% of total drilling and other property and equipment, net of accumulated depreciation.

Major Customers

Our customer base includes major and independent oil and gas companies and government-owned oil companies. Revenues from our major customers for the Successor periods comprising the year ended December 31, 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor periods from January 1, 2021 through April 23, 2021 and the year ended December 31, 2020 that contributed more than 10% of our total revenues are as follows:

	Successor						Predecessor
				Period from			Period from
	Year Ended			April 24, 2021 through			January 1, 2021 through			Year Ended
Customer	December 31, 2022			December 31, 2021			April 23, 2021			December 31, 2020
BP		33.1	%		25.4	%		39.8	%		20.6	%
Woodside		29.7	%		22.4	%		0.5	%		7.0	%
Petróleo Brasileiro S.A.		9.5	%		7.6	%		2.0	%		21.2	%
Shell		4.1	%		5.1	%		9.2	%		10.1	%
Occidental		3.9	%		11.5	%		21.4	%		20.1	%
Hess Corporation		—			—			—			10.7	%