Drilling and Other Property and Equipment

6 Months Ended

Jun. 30, 2021

Property Plant And Equipment [Abstract]

Drilling and Other Property and Equipment

9. Drilling and Other Property and Equipment

Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands):

	Successor			Predecessor
	June 30,			December 31,
	2021			2020
Drilling rigs and equipment	$	1,182,243		$	6,987,630
Land and buildings		9,803			41,072
Office equipment and other		2,177			83,016
Finance lease right of use asset		174,571			—
Cost		1,368,794			7,111,718
Less: accumulated depreciation		(18,736	)		(2,988,909	)
Drilling and other property and equipment, net	$	1,350,058		$	4,122,809

All assets were adjusted to fair value as of the Effective Date of fresh start accounting. See Note 3 “Fresh Start Accounting.”

During the period from January 1 through April 23, 2021, we recorded an impairment charge of $197.0 million to write down a drilling rig with indicators of impairment to its estimated fair value. See Note 5 “Impairment of Assets” and Note 8 “Financial Instruments and Fair Value Disclosures.”  

We have reported the $1.0 million net book value of the Ocean Valor, a previously impaired semisubmersible rig, as “Assets held for sale” in our unaudited Condensed Consolidated Balance Sheet at June 30, 2021. During the period from January 1 through April 23, 2021, we sold the Ocean America and Ocean Rover, both previously impaired semisubmersible rigs that were reported as “Assets held for sale” in our unaudited Condensed Consolidated Balance Sheet at December 31, 2020, for an aggregate net pre-tax gain of $4.4 million.