Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-8097 | ||
Entity Registrant Name | Valaris Limited | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-1589854 | ||
Entity Address, Address Line One | Clarendon House, 2 Church Street | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Country | BM | ||
Entity Address, Postal Zip Code | HM 11 | ||
City Area Code | +44 (0) | ||
Local Phone Number | 20 7659 4660 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,100 | ||
Entity Common Shares, Shares Outstanding | 72,410,233 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000314808 | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Class A Ordinary Shares, U.S. [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Shares, $0.01 par value share | ||
Trading Symbol | VAL | ||
Security Exchange Name | NYSE | ||
Warrant | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase Common Shares | ||
Trading Symbol | VAL WS | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
OPERATING REVENUES | $ 397.4 | $ 835 | $ 1,784.2 | $ 1,602.5 |
OPERATING EXPENSES | ||||
Cost of Goods and Services Sold | 343.8 | 724.1 | 1,543.6 | 1,383.2 |
Loss on impairment | 756.5 | 0 | 0 | 34.5 |
Depreciation | 159.6 | 66.1 | 101.1 | 91.2 |
General and administrative | 30.7 | 58.2 | 99.3 | 80.9 |
Total operating expenses | 1,290.6 | 848.4 | 1,744 | 1,589.8 |
EQUITY IN EARNINGS OF ARO | 3.1 | 6.1 | 13.3 | 24.5 |
OPERATING INCOME (LOSS) | (890.1) | (7.3) | 53.5 | 37.2 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 3.6 | 28.5 | 101.4 | 65.5 |
Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $132.9 million for the four months ended April 30, 2021) | 2.4 | 31 | 68.9 | 45.3 |
Reorganization items, net | (3,584.6) | (15.5) | 0 | (2.4) |
Other, net | 25.9 | 38.1 | (1.8) | 169.9 |
Other income (expense), net | (3,557.5) | 20.1 | 30.7 | 187.7 |
INCOME (LOSS) BEFORE INCOME TAXES | (4,447.6) | 12.8 | 84.2 | 224.9 |
PROVISION (BENEFIT) FOR INCOME TAXES | ||||
Current income tax expense | 34.4 | 57.7 | 3.8 | 35.2 |
Deferred income tax expense (benefit) | (18.2) | (21.3) | (786.4) | 7.9 |
Total provision for income taxes | 16.2 | 36.4 | (782.6) | 43.1 |
NET INCOME (LOSS) | (4,463.8) | (23.6) | 866.8 | 181.8 |
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (3.2) | (3.8) | (1.4) | (5.3) |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ (4,467) | $ (27.4) | $ 865.4 | $ 176.5 |
EARNINGS (LOSS) PER SHARE | ||||
Basic | $ (22.38) | $ (0.37) | $ 11.68 | $ 2.35 |
Diluted | $ (22.38) | $ (0.37) | $ 11.51 | $ 2.33 |
WEIGHTED-AVERAGE SHARES OUTSTANDING | ||||
Basic | 199,600 | 75,000 | 74,100 | 75,100 |
Diluted | 199,600 | 75,000 | 75,200 | 75,600 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) $ in Millions | 4 Months Ended |
Apr. 30, 2021 USD ($) | |
Income Statement [Abstract] | |
Contractual interest expense | $ 132.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ (4,463.8) | $ (23.6) | $ 866.8 | $ 181.8 |
OTHER COMPREHENSIVE INCOME (LOSS), NET | ||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss) | 0.1 | (9.1) | 10.8 | 23.8 |
Reclassification of net gains on derivative instruments from other comprehensive loss into net loss | (5.6) | 0 | 0 | 0 |
Other | 0 | 0 | (0.3) | 0 |
NET OTHER COMPREHENSIVE INCOME (LOSS) | (5.5) | (9.1) | 10.5 | 23.8 |
COMPREHENSIVE INCOME (LOSS) | (4,469.3) | (32.7) | 877.3 | 205.6 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (3.2) | (3.8) | (1.4) | (5.3) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS | $ (4,472.5) | $ (36.5) | $ 875.9 | $ 200.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 620.5 | $ 724.1 |
Restricted Cash | 15.2 | 24.4 |
Accounts receivable, net | 459.3 | 449.1 |
Other | 177.2 | 148.6 |
Total current assets | 1,272.2 | 1,346.2 |
PROPERTY AND EQUIPMENT, AT COST | 1,889 | 1,134.5 |
Less accumulated depreciation | 255.2 | 157.3 |
Property and equipment, net | 1,633.8 | 977.2 |
LONG-TERM NOTES RECEIVABLE FROM ARO | 282.3 | 254 |
INVESTMENT IN ARO | 124.4 | 111.1 |
Deferred Income Tax Assets, Net | 855.1 | 55.1 |
OTHER ASSETS | 154.4 | 116.7 |
TOTAL ASSETS | 4,322.2 | 2,860.3 |
CURRENT LIABILITIES | ||
Accounts payable - trade | 400.1 | 256.5 |
Accrued liabilities and other | 344.2 | 247.9 |
Liabilities, Current | 744.3 | 504.4 |
LONG-TERM DEBT | 1,079.3 | 542.4 |
Deferred Tax Liabilities, Net | 29.9 | 16.1 |
OTHER LIABILITIES | 471.7 | 499.5 |
Liabilities | 2,325.2 | 1,562.4 |
COMMITMENTS AND CONTINGENCIES | ||
VALARIS SHAREHOLDERS' EQUITY | ||
Common Stock, Value, Outstanding | 0.8 | 0.8 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Warrants and Rights Outstanding | 16.4 | 16.4 |
Additional paid-in capital | 1,119.8 | 1,097.9 |
Retained earnings | 1,025.5 | 160.1 |
Accumulated other comprehensive income | 25.2 | 14.7 |
Treasury Stock, Common, Value | (200.1) | 0 |
Total Valaris shareholders' equity | 1,987.6 | 1,289.9 |
NONCONTROLLING INTERESTS | 9.4 | 8 |
Total equity | 1,997 | 1,297.9 |
Total liabilities and shareholders' equity | $ 4,322.2 | $ 2,860.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common shares, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 700,000,000 | 700,000,000 |
Common shares, shares issued | 75,400,000 | 75,200,000 |
Common Stock, Shares, Outstanding | 72,400,000 | 75,200,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Treasury Stock, Common, Shares | 3,000,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ (4,463.8) | $ (23.6) | $ 866.8 | $ 181.8 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Deferred income tax expense (benefit) | (18.2) | (21.3) | (786.4) | 7.9 |
Depreciation expense | 159.6 | 66.1 | 101.1 | 91.2 |
Loss on extinguishment of debt | 0 | 0 | 29.2 | 0 |
Net gain on sale of property | (6) | (21.2) | (28.6) | (141.2) |
Accretion of discount on notes receivable from ARO | 0 | 20.8 | 28.3 | 44.9 |
Share-based compensation expense | 4.8 | 4.3 | 27.3 | 17.4 |
EQUITY IN EARNINGS OF ARO | 3.1 | 6.1 | 13.3 | 24.5 |
Net periodic pension and retiree medical income | (5.4) | (8.7) | (0.9) | (16.4) |
Loss on impairment | 756.5 | 0 | 0 | 34.5 |
Non-cash reorganization items, net | 3,487.3 | 0 | 0 | 0 |
Changes in deferred costs | 22.2 | (34.7) | (26.1) | (38.8) |
Changes in contract liabilities | (36.2) | 20.8 | 4.9 | 62.4 |
Other | (7.8) | (1.6) | (6.7) | (8.3) |
Changes in operating assets and liabilities | 77.1 | 20 | 121.8 | (6.6) |
Contributions to pension plans and other post-retirement benefits | (22.5) | (2.7) | (6.7) | (4.1) |
Net cash provided by (used in) operating activities | (39.9) | (26.3) | 267.5 | 127 |
INVESTING ACTIVITIES | ||||
Additions to property and equipment | (8.7) | (50.2) | (696.1) | (207) |
Net proceeds from disposition of assets | 30.1 | 25.1 | 30.3 | 150.3 |
Purchases of short-term investments | 0 | 0 | 0 | (220) |
Maturities of short-term investments | 0 | 0 | 0 | 220 |
Repayment of note receivable from ARO | 0 | 0 | 0 | 40 |
Net Cash Provided by (Used in) Investing Activities, Total | 21.4 | (25.1) | (665.8) | (16.7) |
FINANCING ACTIVITIES | ||||
Reduction of long-term borrowings | 0 | 0 | (571.8) | 0 |
Payments for Repurchase of Common Stock | 0 | 0 | (198.6) | 0 |
Payments of Debt Issuance Costs | (1.4) | 0 | (38.6) | 0 |
Payments for tax withholdings for share-based awards | 0 | 0 | (5.4) | (2.5) |
Consent solicitation fees | 0 | 0 | 0 | (3.9) |
Payments to Predecessor creditors | (129.9) | 0 | 0 | 0 |
Other | 0 | 0 | (3.1) | 0 |
Net cash provided by (used in) financing activities | 388.7 | 0 | 285.5 | (6.4) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 370.2 | (51.4) | (112.8) | 103.9 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 696 | 644.6 | 635.7 | 748.5 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | (696) | (644.6) | (635.7) | (748.5) |
Second Lien Notes | ||||
FINANCING ACTIVITIES | ||||
Issuance of Second Lien Notes | 0 | 0 | 1,103 | 0 |
First Lien Notes | ||||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of senior notes | $ 520 | $ 0 | $ 0 | $ 0 |
Description Of The Business And
Description Of The Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description Of The Business And Summary Of Significant Accounting Policies | DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business We are a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. We own the world's largest offshore drilling rig fleet, including one of the newest ultra-deepwater fleets in the industry and a leading premium jackup fleet. We currently own 53 rigs, including 13 drillships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, 35 jackup rigs and a 50% equity interest in Saudi Aramco Rowan Offshore Drilling Company ("ARO"), our 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional eight rigs. Our customers include many of the leading international and government-owned oil and gas companies, in addition to many independent operators. We are among the most geographically diverse offshore drilling companies with global operations. The markets in which we operate include the Gulf of Mexico, South America, the North Sea, the Middle East, Africa and Asia Pacific. We provide 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. Chapter 11 Cases On August 19, 2020 (the “Petition Date”), Valaris plc (“Legacy Valaris” or “Predecessor”) and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code ("Bankruptcy Code") in the Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") The Debtors obtained joint administration of their chapter 11 cases under the caption In re Valaris plc, et al., Case No. 20-34114 (MI) (the “Chapter 11 Cases”). In connection with the Chapter 11 Cases, on and prior to April 30, 2021 (the "Effective Date"), Legacy Valaris effectuated certain restructuring transactions, pursuant to which the successor company, Valaris, was formed and, through a series of transactions, Legacy Valaris transferred to a subsidiary of Valaris substantially all of the subsidiaries, and other assets, of Legacy Valaris. References to the financial position and results of operations of the "Successor" or "Successor Company" relate to the financial position and results of operations of the Company after the Effective Date. References to the financial position and results of operations of the "Predecessor" or "Predecessor Company" refer to the financial position and results of operations of Legacy Valaris on and prior to the Effective Date. References to the “Company,” “we,” “us” or “our” in this Annual 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 Effective Date. See “ Note 2 – Chapter 11 Proceedings” for additional details regarding the Chapter 11 Cases. Fresh Start Accounting On the Effective Date, the Debtors emerged from the Chapter 11 Cases. Upon emergence from the Chapter 11 Cases, we qualified for and adopted fresh start accounting. The application of fresh start accounting resulted in a new basis of accounting, and the Company 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. Furthermore, the consolidated financial statements and notes have been presented with a black line division to delineate the lack of comparability between the Predecessor and Successor. See “ Note 2 – Chapter 11 Proceedings” and “ Note 3 - Fresh Start Accounting” for additional details regarding the Chapter 11 Cases and fresh start accounting. Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Valaris Limited, those of our wholly-owned subsidiaries and entities in which we hold a controlling financial interest. All intercompany accounts and transactions have been eliminated. Investments in operating entities in which we have the ability to exercise significant influence, but where we do not control operating and financial policies are accounted for using the equity method. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. We account for our interest in ARO using the equity method of accounting and only recognize our portion of equity in earnings in our consolidated financial statements. ARO is a variable interest entity; however, we are not the primary beneficiary and therefore do not consolidate ARO. Reclassification Certain previously reported amounts have been reclassified to conform to the current year presentation. Pervasiveness of Estimates The preparation of financial statements in conformity with GAAP 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. Foreign Currency Remeasurement and Translation Our functional currency is the U.S. dollar. As is customary in the oil and gas industry, a majority of our revenues and expenses are denominated in U.S. dollars; however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar. These transactions are remeasured in U.S. dollars based on a combination of both current and historical exchange rates. Most transaction gains and losses are included in Other, net, in our Consolidated Statements of Operations. Certain gains and losses from the translation of foreign currency balances of our non-U.S. dollar functional currency subsidiaries are included in Accumulated other comprehensive income on our Consolidated Balance Sheet. Net foreign currency exchange loss was $3.5 million, and gains were $12.2 million, $8.1 million and $13.4 million, and were included in Other, net, in our Consolidated Statements of Operations for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively. Cash Equivalents and Short-Term Investments Highly liquid investments with maturities of three months or less at the date of purchase are considered cash equivalents. Highly liquid investments with maturities of greater than three months but less than one year at the date of purchase are classified as short-term investments. There were no short-term investments as of December 31, 2023 and 2022. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our Consolidated Statements of Cash Flows for the year ended December 31, 2022. To mitigate our credit risk, our investments in time deposits have historically been diversified across multiple, high-quality financial institutions. Property and Equipment All costs incurred in connection with the acquisition, construction, major enhancement and improvement of assets are capitalized, including allocations of interest incurred during periods that our drilling rigs are under construction or undergoing major enhancements and improvements. Costs incurred to place an asset into service are capitalized, including costs related to the initial mobilization of a newbuild drilling rig. Repair and maintenance costs are charged to contract drilling expense in the period in which they are incurred. Upon the sale or retirement of assets, the related cost and accumulated depreciation are removed from the balance sheet, and the resulting gain or loss is included in Other, net in our Consolidated Statements of Operations. Upon emergence, we elected to change our accounting policies and have identified the significant components of our drilling rigs and ascribed useful lives based on the expected time until the next required overhaul or the end of the expected economic lives of the components. Our property and equipment is depreciated on a straight-line basis, after allowing for salvage values, over the estimated useful lives of our assets. Drilling rigs and related equipment are depreciated over estimated useful lives ranging from five two We evaluate the carrying value of our property and equipment, primarily our drilling rigs, on a quarterly basis to identify events or changes in circumstances ("triggering events") that indicate that the carrying value of such rigs may not be recoverable. For property and equipment used in our operations, recoverability generally is determined by comparing the carrying value of an asset to the expected undiscounted future cash flows of the asset. If the carrying value of an asset is not recoverable, the amount of impairment loss is measured as the difference between the carrying value of the asset and its estimated fair value. Property and equipment held-for-sale is recorded at the lower of net book value or fair value less cost to sell. We recorded pre-tax, non-cash impairment losses related to long-lived assets of $34.5 million and $756.5 million, in the year ended December 31, 2022 (Successor) and the four months ended April 30, 2021 (Predecessor), respectively. See " Note 7 - Property and Equipment" for additional information on our impairment charges. Operating Revenues and Expenses See " Note 4 - Revenue from Contracts with Customers" for information on our accounting policies for revenue recognition and certain operating costs that are deferred and amortized over future periods. Income Taxes We conduct operations and earn income in numerous countries. Current income taxes are recognized for the amount of taxes payable or refundable based on the laws and income tax rates in the taxing jurisdictions in which operations are conducted and income is earned. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of our assets and liabilities using the enacted tax rates in effect at year-end. A valuation allowance for deferred tax assets is recorded when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized. We do not offset deferred tax assets and deferred tax liabilities attributable to different tax paying jurisdictions. We operate in certain jurisdictions where tax laws relating to the offshore drilling industry are not well developed and change frequently. Furthermore, we may enter into transactions with affiliates or employ other tax planning strategies that generally are subject to complex tax regulations. As a result of the foregoing, the tax liabilities and assets we recognize in our financial statements may differ from the tax positions taken, or expected to be taken, in our tax returns. Our tax positions are evaluated for recognition as unrecognized tax benefits using a more-likely-than-not threshold, and those requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to income taxes are included in Current income tax expense in our Consolidated Statements of Operations. Our drilling rigs frequently move from one taxing jurisdiction to another based on where they are contracted to perform drilling services. The movement of drilling rigs among taxing jurisdictions may involve a transfer of drilling rig ownership among our subsidiaries through an intercompany rig sale. The pre-tax profit resulting from an intercompany rig sale is eliminated from our consolidated financial statements, and the carrying value of a rig sold in an intercompany transaction remains at historical net depreciated cost prior to the transaction. Our consolidated financial statements do not reflect the asset disposition transaction of the selling subsidiary or the asset acquisition transaction of the acquiring subsidiary. The income tax effects resulting from intercompany rig sales are recognized in earnings in the period in which the sale occurs. In some instances, we may determine that certain temporary differences will not result in a taxable or deductible amount in future years, as it is more-likely-than-not we will commence operations and depart from a given taxing jurisdiction without such temporary differences being recovered or settled. Under these circumstances, no future tax consequences are expected and no deferred taxes are recognized in connection with such operations. We evaluate these determinations on a periodic basis and, in the event our expectations relative to future tax consequences change, the applicable deferred taxes are recognized or derecognized. We do not provide deferred taxes on the undistributed earnings of certain subsidiaries because our policy and intention is to reinvest such earnings indefinitely. Should we make a distribution from these subsidiaries in the form of dividends or otherwise, we may be subject to additional income taxes. Share-Based Compensation We sponsor share-based compensation plans that provide equity compensation to our key employees, officers and non-employee directors. Our 2021 Management Incentive Plan (the “MIP”) allows our board of directors to authorize equity-based grants to be settled in cash, shares or a combination of shares and cash. Compensation expense for time-based equity awards to be settled in shares is measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). Compensation expense for performance awards is recognized over the requisite service period using the accelerated method and is reduced for forfeited awards in the period in which the forfeitures occur. For our performance awards that cliff vest and require the employee to render service through the vesting date, even though attainment of performance objectives might be earlier, our expense under the accelerated method would be a ratable expense over the vesting period. Equity settled performance awards generally vest at the end of a three-year measurement period based on attainment of performance goals. The estimated probable outcome of attainment of the specified performance goals is based primarily on relative performance over the requisite performance period. Any subsequent changes in this estimate as it relates to performance objectives are recognized as a cumulative adjustment to compensation cost in the period in which the change in estimate occurs, except in the case of objectives based on a market condition, such as our stock price. Compensation cost for awards based on a market performance objective is recognized as long as the requisite service period is completed and will not be reversed even if the market-based objective is never satisfied. Any adjustments to the compensation cost recognized in our Consolidated Statements of Operations for awards that are forfeited are recognized in the period in which the forfeitures occur. See " Note 10 - Share Based Compensation" for additional information on our share-based compensation. Pension and Other Post-retirement Benefit Plans We measure our actuarially determined obligations and related costs for our defined benefit pension and other post-retirement plans, retiree life and medical supplemental plan benefits by applying assumptions, the most significant of which include long-term rate of return on plan assets, discount rates and mortality rates. For the long-term rate of return, we develop our assumptions regarding the expected rate of return on plan assets based on historical experience and projected long-term investment returns, and we weight the assumptions based on each plan's asset allocation. For the discount rate, we base our assumptions on a yield curve approach. Actual results may differ from the assumptions included in these calculations. If gains or losses exceed 10% of the greater of the plan assets or plan liabilities, we amortize such gains or losses into income over either the period of expected future service of active participants, or over the expected average remaining lifetime of all participants. We recognize gains or losses related to plan curtailments at the date the plan amendment or termination is adopted which may precede the effective date. Fair Value Measurements We measure certain of our assets and liabilities based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3"). Level 2 measurements represent inputs that are observable for similar assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. See " Note 6 - Fair Value Measurements" for additional information on the fair value measurement of certain of our assets and liabilities. Noncontrolling Interests Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries. Noncontrolling interests are classified as equity on our Consolidated Balance Sheet, and net income attributable to noncontrolling interests is presented separately in our Consolidated Statements of Operations. All income attributable to noncontrolling interest was from continuing operations. Cancellation of Predecessor Equity and Issuance of Warrants On the Effective Date and pursuant to the plan of reorganization, the Legacy Valaris Class A ordinary shares were cancelled and all agreements, instruments and other documents evidencing, relating or otherwise connected with any of Legacy Valaris' equity interests outstanding prior to the Effective Date, including all equity-based awards, were also cancelled. Also, in accordance with the plan of reorganization, the Company issued 5.6 million warrants (the "Warrants") to the former holders of Legacy Valaris' equity to purchase common shares of Valaris Limited with a nominal value of $0.01 per share (the "Common Shares"). The Warrants 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. Earnings Per Share Basic earnings (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. 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 stock equivalents, including warrants, restricted stock unit awards and performance stock unit awards and for the Predecessor included the effect of all potentially dilutive stock options and excluded non-vested shares. The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Income (loss) attributable to our shares $ 865.4 $ 176.5 $ (27.4) $ (4,467.0) Weighted average shares outstanding: Basic 74.1 75.1 75.0 199.6 Effect of stock equivalents 1.1 0.5 — — Diluted 75.2 75.6 75.0 199.6 Anti-dilutive share awards totaling 147,000 and 192,000 were excluded from the computation of diluted EPS for the year ended December 31, 2023 and 2022 (Successor), respectively. Due to the net loss position, anti-dilutive shares totaling 600,000 and 300,000, for the eight months ended December 31, 2021 (Successor) and the four months ended April 30, 2021 (Predecessor), respectively, were excluded from the computation of diluted EPS. We have 5,470,950 Warrants outstanding as of December 31, 2023 which are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant. 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 all periods presented for the Successor. The Predecessor previously had convertible senior notes due 2024 (the "2024 Convertible Notes") for which we had the option to settle in cash, shares or a combination thereof for the aggregate amount due upon conversion. On the Effective Date, pursuant to the plan of reorganization, all outstanding obligations under the 2024 Convertible Notes were cancelled and the holders thereunder received the treatment as set forth in the plan of reorganization. However, if the Legacy Valaris average share price had exceeded the exchange price during a respective predecessor reporting period, an assumed number of shares required to settle the conversion obligation in excess of the principal amount would have been included in our denominator for the computation of diluted EPS using the treasury stock method. The Legacy Valaris average share price did not exceed the exchange price during the four months ended April 30, 2021 (Predecessor). New Accounting Pronouncements Recently adopted accounting pronouncements Business Combinations - In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract 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 adopted Update 2021-08 effective January 1, 2023 with no material impact to our financial statements upon adoption. 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 U.S. 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 provisions in Update 2020-04 were effective upon issuance and could be applied prospectively to contract modifications made through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022, to December 31, 2024. Our long-term notes receivable from ARO (the "Notes Receivable from ARO"), has generated interest income on a LIBOR-based rate since inception of the note. In 2023, we amended the terms of the Notes Receivable from ARO whereby beginning in 2024, interest income is calculated on a Secured Overnight Financing Rate ("SOFR") based rate. The application of Update 2020-04 and ASU No. 2022-06 on this contract modification and the change in reference rates did not have a material impact on our consolidated financial statements. Accounting pronouncements to be adopted Improvements to Reportable Segment Disclosures - In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("Update 2023-07"), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in Update 2023-07 require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("Update 2023-09"), which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in Update 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes. Update 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied on a prospective basis, with an option to apply the guidance retrospectively. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. |
Chapter 11 Proceedings and Abil
Chapter 11 Proceedings and Ability to Continue as a Going Concern | 12 Months Ended |
Dec. 31, 2023 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings and Ability to Continue as Going Concern | CHAPTER 11 PROCEEDINGS Chapter 11 Cases and Emergence from Chapter 11 On the Petition Date, the Debtors filed voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Debtors obtained joint administration of the Chapter 11 Cases under the caption In re Valaris plc, et al., Case No. 20-34114 (MI). On March 3, 2021, the Bankruptcy Court confirmed the Debtors' chapter 11 plan of reorganization. On the Effective Date, we successfully completed our financial restructuring and together with the Debtors emerged from the Chapter 11 Cases. Upon emergence from the Chapter 11 Cases, we eliminated $7.1 billion of debt and obtained a $520.0 million capital injection by issuing the first lien secured notes (the "First Lien Notes"). See “ Note 8 - Debt" for additional information on the First Lien Notes. On the Effective Date, the Legacy Valaris Class A ordinary shares were cancelled and the Common Shares were issued. Also, former holders of Legacy Valaris' equity were issued Warrants to purchase Common Shares. Below is a summary of the terms of the plan of reorganization: • Appointed six new members to the Company's board of directors to replace all of the directors of Legacy Valaris, other than the director also serving as President and Chief Executive Officer at the Effective Date, who was re-appointed pursuant to the plan of reorganization. All but one of the seven directors became directors as of the Effective Date and one became a director on July 1, 2021. • Obligations under Legacy Valaris' outstanding senior notes (the "Senior Notes") were cancelled and the related indentures were cancelled, except to the limited extent expressly set forth in the plan of reorganization and the holders thereunder received the treatment as set forth in the plan of reorganization; • The Legacy Valaris revolving credit facility (the "Revolving Credit Facility") was terminated and the holders thereunder received the treatment as set forth in the plan of reorganization; • Holders of the Senior Notes received their pro rata share of (1) 38.48%, or 28.9 million, of Common Shares and (2) approximately 97.6% of the subscription rights to participate in the rights offering (the "Rights Offering") through which the Company offered $550.0 million of the First Lien Notes, which includes the backstop premium; • Holders of the Senior Notes who participated in the Rights Offering received their pro rata share of approximately 29.3%, or 22.0 million, of Common Shares, and senior noteholders who agreed to backstop the Rights Offering received their pro rata share of approximately 2.63%, or 2.0 million of Common Shares and approximately $48.8 million in First Lien Notes as a backstop premium; • Certain Revolving Credit Facility lenders ("RCF Lenders") who participated in the Rights Offering received their pro rata share of approximately 0.7%, or 0.5 million Common Shares, RCF Lenders who agreed to backstop the Rights Offering received their pro rata share of 0.07%, or 49,500 of Common Shares and approximately $1.2 million in First Lien Notes as a backstop premium; • Senior noteholders, solely with respect to Pride International LLC's 6.875% senior notes due 2020 and 7.875% senior notes due 2040, Ensco International 7.20% Debentures due 2027, and the 4.875% senior notes due 2022, 4.75% senior notes due 2024, 7.375% senior notes due 2025, 5.4% senior notes due 2042 and 5.85% senior notes due 2044, received an aggregate cash payment of $26.0 million in connection with settlement of certain alleged claims against the Company; • The two RCF Lenders who chose to participate in the Rights Offering received their pro rata share of (1) 5.3%, or 4.0 million Common Shares (2) approximately 2.427% of the First Lien Notes (and associated Common Shares), (3) $7.8 million in cash, and (4) their pro rata share of the backstop premium. The RCF Lenders who entered into the amended restructuring support agreement and elected not to participate in the Rights Offering received their pro rata share of (1) 22.980%, or 17.2 million of Common Shares and (2) $96.1 million in cash; • Holders of general unsecured claims are entitled to receive payment in full within ninety days after the later of (a) the Effective Date and (b) the date such claim comes due; • 0.4 million Common Shares were issued and $5.0 million was paid to Daewoo Shipbuilding & Marine Engineering Co., Ltd (the "Shipyard"); • Legacy Valaris Class A ordinary shares were cancelled and holders received 5.6 million in Warrants exercisable for one Common Share per Warrant at 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; • All equity-based awards of Legacy Valaris that were outstanding were cancelled; • On the Effective Date, Valaris Limited entered into a registration rights agreement with certain parties who received Common Shares; • On the Effective Date, Valaris Limited entered into a registration rights agreement with certain parties who received First Lien Notes; and • There were no borrowings outstanding against our debtor-in-possession ("DIP") facility and there were no DIP claims that were not due and payable on, or that otherwise survived, the Effective Date. The DIP Credit Agreement terminated on the Effective Date. Management Incentive Plan In accordance with the plan of reorganization, Valaris Limited adopted the 2021 Management Incentive Plan (the “MIP”) as of the Effective Date and authorized and reserved 9.0 million Common Shares for issuance pursuant to equity incentive awards to be granted under the MIP, which may be in the form of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and cash awards or any combination thereof. See " Note 1 0 - Share Based Compensation" for more information on awards granted under the MIP after the Effective date. Liabilities Subject to Compromise Prior to the Effective Date, liabilities subject to compromise were comprised primarily of the aggregate balance of our pre-petition Senior Notes of $6.5 billion, amounts drawn under the Revolving Credit Facility as of the Petition Date of $581.0 million and the corresponding unpaid accrued interest as of the Petition Date of $203.5 million. The contractual interest expense on the outstanding Senior Notes and the Revolving Credit Facility was in excess of recorded interest expense by $132.9 million for the four months ended April 30, 2021 (Predecessor). This excess contractual interest was not included as interest expense on our Consolidated Statements of Operations as we had discontinued accruing interest on the Predecessor's Senior Notes and Revolving Credit Facility subsequent to the Petition Date. The Predecessor discontinued making interest payments on the Senior Notes beginning in June 2020. Reorganization Items Expenditures, gains and losses that are realized or incurred by the Debtors as of or subsequent to the Petition Date and as a direct result of the Chapter 11 Cases are reported as Reorganization items, net in our Consolidated Statements of Operations for the year ended December 31, 2022, eight months ended December 31, 2021 (Successor) and four months ended April 30, 2021 (Predecessor). These costs include legal and other professional advisory service fees pertaining to the Chapter 11 Cases and the effects of the emergence from bankruptcy, including the application of fresh start accounting. The components of reorganization items, net were as follows (in millions): Successor Predecessor Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Professional fees $ 2.4 $ 17.2 $ 93.4 Contract items — (1.7) 3.9 Reorganization items (fees) 2.4 15.5 97.3 Contract items — — 0.5 Backstop premium — — 30.0 Gain on settlement of liabilities subject to compromise — — (6,139.0) Issuance of Common Shares for — — 29.1 Issuance of Common Shares to the Shipyard — — 5.4 Write-off of unrecognized share-based compensation expense — — 16.0 Impact of newbuild contract amendments — — 350.7 Loss on fresh start adjustments — — 9,194.6 Reorganization items (non-cash) — — 3,487.3 Total reorganization items, net $ 2.4 $ 15.5 $ 3,584.6 Reorganization items (fees) paid $ 2.4 $ 14.7 $ 59.0 Reorganization items (fees) unpaid $ — $ 0.8 $ 38.3 Applicability of Fresh Start Accounting Upon emergence from bankruptcy, we qualified for and applied fresh start accounting, which resulted in the Company becoming a new entity for financial reporting purposes because (1) the holders of the then existing Class A ordinary shares of the Predecessor received less than 50 percent of the Common Shares of the Successor outstanding upon emergence and (2) the reorganization value of the Company’s assets immediately prior to confirmation of the plan of reorganization was less than the total of all post-petition liabilities and allowed claims. The reorganization value derived from the range of enterprise values associated with the plan of reorganization was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes). The amount of deferred income taxes recorded was determined in accordance with the applicable income tax accounting standard. The April 30, 2021 fair values of the Company’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheets. Reorganization Value The reorganization value represents the fair value of the Successor's total assets and was derived from the enterprise value associated with the plan of reorganization, which represents the estimated fair value of an entity's long-term debt and equity less unrestricted cash upon emergence from chapter 11. As set forth in the disclosure statement and approved by the Bankruptcy Court, third-party valuation advisors estimated the enterprise value to be between $1,860.0 million and $3,145.0 million. The enterprise value range of the reorganized Debtors was determined primarily by using a discounted cash flow analysis. The value agreed in the plan of reorganization is indicative of an enterprise value at the low end of this range, or $1,860.0 million. The following table reconciles the enterprise value to the estimated fair value of Successor Common Shares as of the Effective Date (in millions, except per share value): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Less: Fair value of debt (544.8) Less: Warrants (16.4) Less: Noncontrolling interest 1.1 Less: Pension and other post-retirement benefits liabilities (189.0) Less: Adjustments not contemplated in Enterprise Value (639.0) Fair value of Successor Common Shares $ 1,079.5 Shares issued upon emergence 75.0 Per share value $ 14.39 The following table reconciles the enterprise value to the reorganization value as of the Effective Date (in millions): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Plus: Non-interest bearing current liabilities 346.0 Less: Adjustments not contemplated in Enterprise Value (218.0) Reorganization value of Successor assets $ 2,595.6 Adjustments not contemplated in Enterprise Value represent certain obligations of the Successor that were either not contemplated or contemplated in a different amount in the forecasted cash flows of the enterprise valuation performed by third-party valuation advisors that, had they incorporated those anticipated cash flows into their analysis, the resulting valuation would have been different. For the reconciliation of Reorganization value of Successor assets, this item includes certain tax balances, contract liabilities, as well as an adjustment for the fair value of pension obligations. The reconciliation to Successor Common Share value includes these same reconciling items as well as other current and non-current liabilities of the Successor at the emergence. The enterprise value and corresponding implied equity value are dependent upon achieving the future financial results set forth in the valuation utilizing assumptions regarding future day rates, utilization, operating costs and capital requirements as of the emergence date. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The fair values of the Company's principal assets and liabilities including property, plant and equipment as well as our 50% equity interest in ARO and our Notes Receivable from ARO, options to purchase VALARIS DS-13 and VALARIS DS-14 (the "Newbuild Drillships"), the First Lien Notes, pensions and Warrants were estimated with the assistance of third-party valuation advisors. Property, Plant and Equipment The valuation of the Company’s drilling rigs was estimated by using an income approach 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, reactivation costs and capital requirements. In developing these assumptions, forecasted day rates and utilization took into account current market conditions and our anticipated business outlook. The cash flows were discounted at our weighted average cost of capital, which was derived from a blend of our after-tax cost of debt and our cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates and certain risk premiums specific to the Company. Our remaining property and equipment, including owned real estate and other equipment, was valued using a cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and obsolescence, where applicable, to arrive at estimated fair value. The estimated fair value of our property and equipment includes an adjustment to reconcile to our reorganization value. Notes Receivable from ARO The fair value of the Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium. Investment in ARO We estimated the fair value of the equity investment in ARO primarily by applying an income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate and an estimated effective income tax rate. Options to Purchase Newbuild Drillships The fair value of the options to purchase Newbuild Drillships was estimated using an option pricing model utilizing the estimated fair value of a newbuild rig, estimated purchase price upon exercise of the options, the holding period, equity volatility and the risk-free rate. First Lien Notes The fair value of the First Lien Notes was determined to approximate the par value based on third-party valuation advisors’ analysis of the Company’s collateral coverage, financial metrics, and interest rate for the First Lien Notes relative to market rates of recent placements of a similar term for industry participants with similar credit risk. Pensions Our pension and other postretirement benefit liabilities and costs are based upon actuarial computations that reflect our assumptions about future events, including long-term asset returns, interest rates, annual compensation increases, mortality rates and other factors. Upon emergence, our pension and other postretirement plans were remeasured as of the Effective Date. Key assumptions at the Effective Date included (1) a weighted average discount rate of 2.81% to determine pension benefit obligations and (2) an expected long-term rate of return on pension plan assets of 6.03% to determine net periodic pension cost. Warrants The fair value of the Warrants was determined using an option pricing model considering the contractual terms of the Warrant issuance. The key market data assumptions for the option pricing model are the estimated volatility and the risk-free rate. The volatility assumption was estimated using market data for offshore drilling market participants with consideration for differences in leverage. The risk-free rate assumption was based on U.S. Treasury Constant Maturity rates with a comparable term. Condensed Consolidated Balance Sheet The adjustments included in the following Condensed Consolidated Balance Sheet reflect the effects of the transactions contemplated by the plan of reorganization and executed by the Company on the Effective Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of fresh start accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information with regard to the adjustments recorded. As of April 30, 2021 Predecessor Reorganization Adjustments Fresh Start Accounting Adjustments Successor ASSETS CURRENT ASSETS Cash and cash equivalents $ 280.2 $ 327.4 (a) $ — $ 607.6 Restricted cash 45.7 42.7 (b) — 88.4 Accounts receivable, net 425.9 — — 425.9 Other current assets 370.1 1.5 (c) (281.1) (o) 90.5 Total current assets 1,121.9 371.6 (281.1) 1,212.4 PROPERTY AND EQUIPMENT, NET 10,026.4 (417.6) (d) (8,699.7) (p) 909.1 LONG-TERM NOTES RECEIVABLE FROM ARO 442.7 — (214.4) (q) 228.3 INVESTMENT IN ARO 123.9 — (43.4) (r) 80.5 OTHER ASSETS 166.4 (10.0) (e) 8.9 (s) 165.3 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 161.5 $ 13.1 (f) $ (0.5) (t) $ 174.1 Accrued liabilities and other 290.7 (12.4) (g) (61.8) (u) 216.5 Total current liabilities 452.2 0.7 (62.3) 390.6 LONG-TERM DEBT — 544.8 (h) — 544.8 OTHER LIABILITIES 706.2 (55.2) (i) (85.6) (v) 565.4 Total liabilities not subject to compromise 1,158.4 490.3 (147.9) 1,500.8 LIABILITIES SUBJECT TO COMPROMISE 7,313.7 (7,313.7) (j) — — COMMITMENTS AND CONTINGENCIES VALARIS SHAREHOLDERS' EQUITY Predecessor Class A ordinary shares 82.5 (82.5) (k) — — Predecessor Class B ordinary shares 0.1 (0.1) (k) — — Successor common shares — 0.8 (l) — 0.8 Successor stock warrants — 16.4 (m) — 16.4 Predecessor additional paid-in capital 8,644.0 (8,644.0) (k) — — Successor additional paid-in capital — 1,078.7 (l) — 1,078.7 Retained deficit (5,147.4) 14,322.6 (n) (9,175.2) (w) — Accumulated other comprehensive loss (93.4) — 93.4 (x) — Predecessor treasury shares (75.5) 75.5 (k) — — Total Valaris shareholders' equity 3,410.3 6,767.4 (9,081.8) 1,095.9 NONCONTROLLING INTERESTS (1.1) — — (1.1) Total equity 3,409.2 6,767.4 (9,081.8) 1,094.8 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 Reorganization Adjustments (a) Cash Represents the reorganization adjustments (in millions): Receipt of cash for First Lien Notes $ 500.0 Loan proceeds from backstop lenders 20.0 Funds received for liquidation of rabbi trust related to certain employee benefits 17.6 Payments to Predecessor creditors (129.9) Transfer of funds for payment of certain professional fees to escrow account (42.7) Payment for certain professional services fees (29.0) Various other (8.6) $ 327.4 (b) Restricted cash Reflects the reorganization adjustment to record the transfer of cash for payment of certain professional fees to restricted cash, which were held in escrow until billings from professionals were received and reconciled at which time the funds in the account were released. (c) Other current asset Reflects certain prepayments incurred upon emergence. (d) Property and Equipment, net Reflects the reorganization adjustment to remove $417.6 million of work-in-process related to the Newbuild Drillships. These values were removed from property and equipment, net, based on the terms of the amended agreements with the Shipyard. As a result of the option to take delivery, we removed the historical work-in-process balances from the balance sheet. (e) Other assets Represents the reorganization adjustments (in millions): Liquidation of rabbi trust related to certain employee benefits $ (17.6) Elimination of right-of-use asset associated with Newbuild Drillships (5.5) Fair value of options to purchase Newbuild Drillships 13.1 $ (10.0) Our supplemental executive retirement plans are non-qualified plans that provided eligible employees an opportunity to defer a portion of their compensation for use after retirement. The plans were frozen to the entry of new participants in 2019 and to future compensation deferrals as of January 1, 2020. Upon emergence, assets previously held in a rabbi trust maintained for the plan were liquidated and the plan was amended. In accordance with the amended agreement with the Shipyard, our leases were terminated and we have eliminated the historical right-of-use asset associated with the berthing locations of Newbuild Drillships. Additionally, upon effectiveness of the plan of reorganization, the amended agreement with the Shipyard provides the Company with the option to purchase the Newbuild Drillships. The reorganization adjustments include an asset that reflects the fair value of the option to purchase the Newbuild Drillships and embedded feature related to the ability, under the amended agreements with the Shipyard, for the equity issued pursuant to this arrangement to be put to the Company for $8.0 million of consideration for each rig, should we choose to take delivery. (f) Accounts payable - trade Reflects the following reorganization adjustments (in millions): Professional fees incurred upon emergence $ 26.1 Payment of professional fees incurred prior to emergence (12.6) Payment of certain accounts payable incurred prior to emergence (0.4) $ 13.1 (g) Accrued liabilities and other Reflects the following reorganization adjustments (in millions): Elimination of lease liabilities associated with Newbuild Drillships $ (5.0) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.1) Payment of certain accrued liabilities incurred prior to emergence (3.3) $ (12.4) In accordance with the amended agreement with the Shipyard, our leases were terminated and we eliminated the historical lease liability associated with the berthing locations of Newbuild Drillships. Accrued post-petition holding costs were also eliminated as a result of the amendments made effective upon emergence. Additionally, reorganization adjustments to accrued liabilities and other includes an amount primarily related to payment of professional fees incurred prior to emergence. (h) Long-term debt Reflects the reorganization adjustment to record the issuance of the $550.0 million aggregate principal amount of First Lien Notes and debt issuance costs of $5.2 million. (i) Other liabilities Reflects the following reorganization adjustments (in millions): Elimination of construction contract intangible liabilities associated with Newbuild Drillships $ (49.9) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.7) Elimination of lease liabilities associated with Newbuild Drillships (0.6) $ (55.2) The reorganization adjustments to other liabilities primarily relate to the elimination of construction contract intangible liabilities associated with the Newbuild Drillships. These construction contract intangible liabilities were recorded in purchase accounting for the original contracting entity. As the amended contract was structured as an option whereby we had the right, not the obligation to take delivery of the rigs, there was no longer an intangible liability associated with the contracts. We have eliminated the historical lease liability associated with the berthing locations of Newbuild Drillships and accrued post-petition holding costs as described in (g) above. (j) Liabilities subject to compromise Reflects the following reorganization adjustments (in millions): Settlement of liabilities subject to compromise $ 7,313.7 Issuance of common stock to Predecessor creditors (721.0) Issuance of common stock to backstop parties (323.8) Payments to Predecessor creditors (129.9) Gain on settlement of liabilities subject to compromise $ 6,139.0 (k) Predecessor ordinary shares, additional paid-in capital and treasury shares Represents the cancellation of the Predecessor's ordinary shares of $82.6 million, additional paid-in capital of $8,644.0 million and treasury stock of $75.5 million. (l) Successor common shares and additional paid-in capital Represents par value of 75.0 million new Common Shares of $0.8 million and capital in excess of par value of $1,078.7 million. (m) Successor stock warrants On the Effective Date and pursuant to the plan of reorganization, Valaris Limited issued an aggregate of 5.6 million Warrants exercisable for up to an aggregate of 5.6 million Common Shares to former holders of Legacy Valaris' equity interests. The fair value of the Warrants as of the Effective Date was $16.4 million. (n) Retained deficit Represents the reorganization adjustments to total equity as follows (in millions): Gain on settlement of liabilities subject to compromise $ (6,139.0) Issuance of Common Shares for backstop premium 29.1 Issuance of Common Shares to the Shipyard 5.4 Write-off of unrecognized share-based compensation expense 16.0 Professional fees and success fees 35.9 Backstop premium 30.0 Impact of newbuild contract amendments 350.7 Reorganization items, net (5,671.9) Cancellation of Predecessor common shares (82.6) Cancellation of Predecessor treasury shares 75.5 Cancellation of Predecessor additional paid in capital (7,856.4) Cancellation of equity component of Predecessor convertible notes (220.0) Cancellation of Predecessor cash and equity compensation plans (583.6) Fair value of Warrants 16.4 $ (14,322.6) Fresh Start Adjustments (o) Other current assets Reflects the fresh start adjustments to record the estimated fair value of other current assets as follows (in millions): Elimination of materials and supplies $ (260.8) Elimination of historical deferred contract drilling expenses (20.3) $ (281.1) Primarily reflects the fresh start adjustment to eliminate the historical balance for materials and supplies as the result of a change in accounting policies upon emergence. Historically, we recognized materials and supplies on the balance sheet when purchased and subsequently expensed items when consumed. Upon emergence from bankruptcy, we elected to change our accounting policies related to materials and supplies whereby materials and supplies will be expensed as a period cost when received. Additionally, a customer arrangement provides that we take title to their materials and supplies for the duration of the contract and return or pay cash for them at the termination of the contract. Together with our policy change on materials and supplies, we elected to record these assets and the obligation to our customer on a net basis as opposed to a gross basis. The fresh start adjustment for the elimination of historical deferred contract drilling expenses primarily relates to deferred mobilization costs, deferred contract preparation costs and deferred certification costs. Costs incurred for mobilization and contract preparation prior to the commencement of drilling services are deferred and subsequently amortized over the term of the related drilling contract. Additionally, 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. These deferred costs had no future economic benefit and were eliminated from the fresh start financial statements. (p) Property and equipment, net Reflects the fresh start adjustments to historical amounts to record the estimated fair value of property and equipment. Furthermore, upon emergence from bankruptcy, we elected to change our accounting policies and have identified the significant components of our drilling rigs and ascribed useful lives based on the expected time until the next required overhaul or the end of the expected economic lives of the components. Prior to emergence, we recorded our drilling rigs as a single asset with a useful life ascribed by the expected useful life of that asset. (q) Notes Receivable from ARO Reflects the fresh start adjustment to record the estimated fair value of the Notes Receivable from ARO. (r) Investment in ARO Reflects the fresh start adjustment to record the estimated fair value of the equity investment in ARO. (s) Other assets Reflects the fresh start adjustments to record the estimated fair value of other assets as follows (in millions): Deferred tax impacts of certain fresh start adjustments $ 21.1 Fair value of contracts with customers 8.5 Fair value adjustments to right-of-use assets 0.4 Elimination of historical deferred contract drilling expenses (16.5) Elimination of other deferred costs (4.6) $ 8.9 The fresh start adjustment for deferred income tax assets represents the estimated incremental deferred income taxes, which reflects the tax effect of the differences between the estimated fair value of certain assets and liabilities recorded under fresh start accounting and the carryover tax basis of those assets and liabilities. The fresh start adjustment to record the estimated fair value of contracts with customers represents the intangible assets recognized for firm customer contracts in place at the Effective Date that have favorable contract terms as compared to current market day rates for comparable drilling rigs. The various factors considered in the adjustment were (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the emergence date. The intangible assets are computed based on the present value of the difference in cash inflows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate. This balance was amortized to operating revenues over the respective remaining contract terms on a straight-line basis. The fresh start adjustment to right-of-use assets reflects the remeasuring of our operating leases as of the emergence date. Certain operating leases had unfavorable terms as of the emergence date, and as a result the right-of-use asset for such leases did not equal the lease liability upon emergence. The fresh start adjustment to eliminate historical deferred contract drilling expenses reflects the noncurrent portion of historical deferred contract drilling expenses described in (o) above as well as the elimination of customer contract intangibles previously recorded in purchase accounting for a 2019 transaction. The fresh start adjustments to eliminate other deferred costs reflect non-operational deferred costs that had no future economic benefit. (t) Accounts payable - trade The fresh start adjustment to accounts payable trade reflects the write off of certain deferred amounts related to our operating leases. This value was eliminated through the remeasurement of our leases as of the emergence date. (u) Accrued liabilities and other Reflects the fresh start adjustments to record the estimated fair value of current liabilities as follows (in millions): Elimination of customer payable balance $ (36.8) Elimination of historical deferred revenues (25.9) Fair value of contracts with customers 0.5 Fair value adjustment to lease liabilities 0.4 $ (61.8) The fresh start adjustment to eliminate the customer payable balance is related to the change in accounting policy to present the balance on a net basis. The fresh start adjustment to eliminate historical deferred reve |
Fresh Start Accounting
Fresh Start Accounting | 12 Months Ended |
Dec. 31, 2023 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings and Ability to Continue as Going Concern | CHAPTER 11 PROCEEDINGS Chapter 11 Cases and Emergence from Chapter 11 On the Petition Date, the Debtors filed voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Debtors obtained joint administration of the Chapter 11 Cases under the caption In re Valaris plc, et al., Case No. 20-34114 (MI). On March 3, 2021, the Bankruptcy Court confirmed the Debtors' chapter 11 plan of reorganization. On the Effective Date, we successfully completed our financial restructuring and together with the Debtors emerged from the Chapter 11 Cases. Upon emergence from the Chapter 11 Cases, we eliminated $7.1 billion of debt and obtained a $520.0 million capital injection by issuing the first lien secured notes (the "First Lien Notes"). See “ Note 8 - Debt" for additional information on the First Lien Notes. On the Effective Date, the Legacy Valaris Class A ordinary shares were cancelled and the Common Shares were issued. Also, former holders of Legacy Valaris' equity were issued Warrants to purchase Common Shares. Below is a summary of the terms of the plan of reorganization: • Appointed six new members to the Company's board of directors to replace all of the directors of Legacy Valaris, other than the director also serving as President and Chief Executive Officer at the Effective Date, who was re-appointed pursuant to the plan of reorganization. All but one of the seven directors became directors as of the Effective Date and one became a director on July 1, 2021. • Obligations under Legacy Valaris' outstanding senior notes (the "Senior Notes") were cancelled and the related indentures were cancelled, except to the limited extent expressly set forth in the plan of reorganization and the holders thereunder received the treatment as set forth in the plan of reorganization; • The Legacy Valaris revolving credit facility (the "Revolving Credit Facility") was terminated and the holders thereunder received the treatment as set forth in the plan of reorganization; • Holders of the Senior Notes received their pro rata share of (1) 38.48%, or 28.9 million, of Common Shares and (2) approximately 97.6% of the subscription rights to participate in the rights offering (the "Rights Offering") through which the Company offered $550.0 million of the First Lien Notes, which includes the backstop premium; • Holders of the Senior Notes who participated in the Rights Offering received their pro rata share of approximately 29.3%, or 22.0 million, of Common Shares, and senior noteholders who agreed to backstop the Rights Offering received their pro rata share of approximately 2.63%, or 2.0 million of Common Shares and approximately $48.8 million in First Lien Notes as a backstop premium; • Certain Revolving Credit Facility lenders ("RCF Lenders") who participated in the Rights Offering received their pro rata share of approximately 0.7%, or 0.5 million Common Shares, RCF Lenders who agreed to backstop the Rights Offering received their pro rata share of 0.07%, or 49,500 of Common Shares and approximately $1.2 million in First Lien Notes as a backstop premium; • Senior noteholders, solely with respect to Pride International LLC's 6.875% senior notes due 2020 and 7.875% senior notes due 2040, Ensco International 7.20% Debentures due 2027, and the 4.875% senior notes due 2022, 4.75% senior notes due 2024, 7.375% senior notes due 2025, 5.4% senior notes due 2042 and 5.85% senior notes due 2044, received an aggregate cash payment of $26.0 million in connection with settlement of certain alleged claims against the Company; • The two RCF Lenders who chose to participate in the Rights Offering received their pro rata share of (1) 5.3%, or 4.0 million Common Shares (2) approximately 2.427% of the First Lien Notes (and associated Common Shares), (3) $7.8 million in cash, and (4) their pro rata share of the backstop premium. The RCF Lenders who entered into the amended restructuring support agreement and elected not to participate in the Rights Offering received their pro rata share of (1) 22.980%, or 17.2 million of Common Shares and (2) $96.1 million in cash; • Holders of general unsecured claims are entitled to receive payment in full within ninety days after the later of (a) the Effective Date and (b) the date such claim comes due; • 0.4 million Common Shares were issued and $5.0 million was paid to Daewoo Shipbuilding & Marine Engineering Co., Ltd (the "Shipyard"); • Legacy Valaris Class A ordinary shares were cancelled and holders received 5.6 million in Warrants exercisable for one Common Share per Warrant at 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; • All equity-based awards of Legacy Valaris that were outstanding were cancelled; • On the Effective Date, Valaris Limited entered into a registration rights agreement with certain parties who received Common Shares; • On the Effective Date, Valaris Limited entered into a registration rights agreement with certain parties who received First Lien Notes; and • There were no borrowings outstanding against our debtor-in-possession ("DIP") facility and there were no DIP claims that were not due and payable on, or that otherwise survived, the Effective Date. The DIP Credit Agreement terminated on the Effective Date. Management Incentive Plan In accordance with the plan of reorganization, Valaris Limited adopted the 2021 Management Incentive Plan (the “MIP”) as of the Effective Date and authorized and reserved 9.0 million Common Shares for issuance pursuant to equity incentive awards to be granted under the MIP, which may be in the form of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and cash awards or any combination thereof. See " Note 1 0 - Share Based Compensation" for more information on awards granted under the MIP after the Effective date. Liabilities Subject to Compromise Prior to the Effective Date, liabilities subject to compromise were comprised primarily of the aggregate balance of our pre-petition Senior Notes of $6.5 billion, amounts drawn under the Revolving Credit Facility as of the Petition Date of $581.0 million and the corresponding unpaid accrued interest as of the Petition Date of $203.5 million. The contractual interest expense on the outstanding Senior Notes and the Revolving Credit Facility was in excess of recorded interest expense by $132.9 million for the four months ended April 30, 2021 (Predecessor). This excess contractual interest was not included as interest expense on our Consolidated Statements of Operations as we had discontinued accruing interest on the Predecessor's Senior Notes and Revolving Credit Facility subsequent to the Petition Date. The Predecessor discontinued making interest payments on the Senior Notes beginning in June 2020. Reorganization Items Expenditures, gains and losses that are realized or incurred by the Debtors as of or subsequent to the Petition Date and as a direct result of the Chapter 11 Cases are reported as Reorganization items, net in our Consolidated Statements of Operations for the year ended December 31, 2022, eight months ended December 31, 2021 (Successor) and four months ended April 30, 2021 (Predecessor). These costs include legal and other professional advisory service fees pertaining to the Chapter 11 Cases and the effects of the emergence from bankruptcy, including the application of fresh start accounting. The components of reorganization items, net were as follows (in millions): Successor Predecessor Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Professional fees $ 2.4 $ 17.2 $ 93.4 Contract items — (1.7) 3.9 Reorganization items (fees) 2.4 15.5 97.3 Contract items — — 0.5 Backstop premium — — 30.0 Gain on settlement of liabilities subject to compromise — — (6,139.0) Issuance of Common Shares for — — 29.1 Issuance of Common Shares to the Shipyard — — 5.4 Write-off of unrecognized share-based compensation expense — — 16.0 Impact of newbuild contract amendments — — 350.7 Loss on fresh start adjustments — — 9,194.6 Reorganization items (non-cash) — — 3,487.3 Total reorganization items, net $ 2.4 $ 15.5 $ 3,584.6 Reorganization items (fees) paid $ 2.4 $ 14.7 $ 59.0 Reorganization items (fees) unpaid $ — $ 0.8 $ 38.3 Applicability of Fresh Start Accounting Upon emergence from bankruptcy, we qualified for and applied fresh start accounting, which resulted in the Company becoming a new entity for financial reporting purposes because (1) the holders of the then existing Class A ordinary shares of the Predecessor received less than 50 percent of the Common Shares of the Successor outstanding upon emergence and (2) the reorganization value of the Company’s assets immediately prior to confirmation of the plan of reorganization was less than the total of all post-petition liabilities and allowed claims. The reorganization value derived from the range of enterprise values associated with the plan of reorganization was allocated to the Company’s identifiable tangible and intangible assets and liabilities based on their fair values (except for deferred income taxes). The amount of deferred income taxes recorded was determined in accordance with the applicable income tax accounting standard. The April 30, 2021 fair values of the Company’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheets. Reorganization Value The reorganization value represents the fair value of the Successor's total assets and was derived from the enterprise value associated with the plan of reorganization, which represents the estimated fair value of an entity's long-term debt and equity less unrestricted cash upon emergence from chapter 11. As set forth in the disclosure statement and approved by the Bankruptcy Court, third-party valuation advisors estimated the enterprise value to be between $1,860.0 million and $3,145.0 million. The enterprise value range of the reorganized Debtors was determined primarily by using a discounted cash flow analysis. The value agreed in the plan of reorganization is indicative of an enterprise value at the low end of this range, or $1,860.0 million. The following table reconciles the enterprise value to the estimated fair value of Successor Common Shares as of the Effective Date (in millions, except per share value): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Less: Fair value of debt (544.8) Less: Warrants (16.4) Less: Noncontrolling interest 1.1 Less: Pension and other post-retirement benefits liabilities (189.0) Less: Adjustments not contemplated in Enterprise Value (639.0) Fair value of Successor Common Shares $ 1,079.5 Shares issued upon emergence 75.0 Per share value $ 14.39 The following table reconciles the enterprise value to the reorganization value as of the Effective Date (in millions): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Plus: Non-interest bearing current liabilities 346.0 Less: Adjustments not contemplated in Enterprise Value (218.0) Reorganization value of Successor assets $ 2,595.6 Adjustments not contemplated in Enterprise Value represent certain obligations of the Successor that were either not contemplated or contemplated in a different amount in the forecasted cash flows of the enterprise valuation performed by third-party valuation advisors that, had they incorporated those anticipated cash flows into their analysis, the resulting valuation would have been different. For the reconciliation of Reorganization value of Successor assets, this item includes certain tax balances, contract liabilities, as well as an adjustment for the fair value of pension obligations. The reconciliation to Successor Common Share value includes these same reconciling items as well as other current and non-current liabilities of the Successor at the emergence. The enterprise value and corresponding implied equity value are dependent upon achieving the future financial results set forth in the valuation utilizing assumptions regarding future day rates, utilization, operating costs and capital requirements as of the emergence date. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The fair values of the Company's principal assets and liabilities including property, plant and equipment as well as our 50% equity interest in ARO and our Notes Receivable from ARO, options to purchase VALARIS DS-13 and VALARIS DS-14 (the "Newbuild Drillships"), the First Lien Notes, pensions and Warrants were estimated with the assistance of third-party valuation advisors. Property, Plant and Equipment The valuation of the Company’s drilling rigs was estimated by using an income approach 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, reactivation costs and capital requirements. In developing these assumptions, forecasted day rates and utilization took into account current market conditions and our anticipated business outlook. The cash flows were discounted at our weighted average cost of capital, which was derived from a blend of our after-tax cost of debt and our cost of equity and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates and certain risk premiums specific to the Company. Our remaining property and equipment, including owned real estate and other equipment, was valued using a cost approach, in which the estimated replacement cost of the assets was adjusted for physical depreciation and obsolescence, where applicable, to arrive at estimated fair value. The estimated fair value of our property and equipment includes an adjustment to reconcile to our reorganization value. Notes Receivable from ARO The fair value of the Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium. Investment in ARO We estimated the fair value of the equity investment in ARO primarily by applying an income approach, using projected discounted cash flows of the underlying assets, a risk-adjusted discount rate and an estimated effective income tax rate. Options to Purchase Newbuild Drillships The fair value of the options to purchase Newbuild Drillships was estimated using an option pricing model utilizing the estimated fair value of a newbuild rig, estimated purchase price upon exercise of the options, the holding period, equity volatility and the risk-free rate. First Lien Notes The fair value of the First Lien Notes was determined to approximate the par value based on third-party valuation advisors’ analysis of the Company’s collateral coverage, financial metrics, and interest rate for the First Lien Notes relative to market rates of recent placements of a similar term for industry participants with similar credit risk. Pensions Our pension and other postretirement benefit liabilities and costs are based upon actuarial computations that reflect our assumptions about future events, including long-term asset returns, interest rates, annual compensation increases, mortality rates and other factors. Upon emergence, our pension and other postretirement plans were remeasured as of the Effective Date. Key assumptions at the Effective Date included (1) a weighted average discount rate of 2.81% to determine pension benefit obligations and (2) an expected long-term rate of return on pension plan assets of 6.03% to determine net periodic pension cost. Warrants The fair value of the Warrants was determined using an option pricing model considering the contractual terms of the Warrant issuance. The key market data assumptions for the option pricing model are the estimated volatility and the risk-free rate. The volatility assumption was estimated using market data for offshore drilling market participants with consideration for differences in leverage. The risk-free rate assumption was based on U.S. Treasury Constant Maturity rates with a comparable term. Condensed Consolidated Balance Sheet The adjustments included in the following Condensed Consolidated Balance Sheet reflect the effects of the transactions contemplated by the plan of reorganization and executed by the Company on the Effective Date (reflected in the column “Reorganization Adjustments”), and fair value and other required accounting adjustments resulting from the adoption of fresh start accounting (reflected in the column “Fresh Start Accounting Adjustments”). The explanatory notes provide additional information with regard to the adjustments recorded. As of April 30, 2021 Predecessor Reorganization Adjustments Fresh Start Accounting Adjustments Successor ASSETS CURRENT ASSETS Cash and cash equivalents $ 280.2 $ 327.4 (a) $ — $ 607.6 Restricted cash 45.7 42.7 (b) — 88.4 Accounts receivable, net 425.9 — — 425.9 Other current assets 370.1 1.5 (c) (281.1) (o) 90.5 Total current assets 1,121.9 371.6 (281.1) 1,212.4 PROPERTY AND EQUIPMENT, NET 10,026.4 (417.6) (d) (8,699.7) (p) 909.1 LONG-TERM NOTES RECEIVABLE FROM ARO 442.7 — (214.4) (q) 228.3 INVESTMENT IN ARO 123.9 — (43.4) (r) 80.5 OTHER ASSETS 166.4 (10.0) (e) 8.9 (s) 165.3 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 161.5 $ 13.1 (f) $ (0.5) (t) $ 174.1 Accrued liabilities and other 290.7 (12.4) (g) (61.8) (u) 216.5 Total current liabilities 452.2 0.7 (62.3) 390.6 LONG-TERM DEBT — 544.8 (h) — 544.8 OTHER LIABILITIES 706.2 (55.2) (i) (85.6) (v) 565.4 Total liabilities not subject to compromise 1,158.4 490.3 (147.9) 1,500.8 LIABILITIES SUBJECT TO COMPROMISE 7,313.7 (7,313.7) (j) — — COMMITMENTS AND CONTINGENCIES VALARIS SHAREHOLDERS' EQUITY Predecessor Class A ordinary shares 82.5 (82.5) (k) — — Predecessor Class B ordinary shares 0.1 (0.1) (k) — — Successor common shares — 0.8 (l) — 0.8 Successor stock warrants — 16.4 (m) — 16.4 Predecessor additional paid-in capital 8,644.0 (8,644.0) (k) — — Successor additional paid-in capital — 1,078.7 (l) — 1,078.7 Retained deficit (5,147.4) 14,322.6 (n) (9,175.2) (w) — Accumulated other comprehensive loss (93.4) — 93.4 (x) — Predecessor treasury shares (75.5) 75.5 (k) — — Total Valaris shareholders' equity 3,410.3 6,767.4 (9,081.8) 1,095.9 NONCONTROLLING INTERESTS (1.1) — — (1.1) Total equity 3,409.2 6,767.4 (9,081.8) 1,094.8 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 Reorganization Adjustments (a) Cash Represents the reorganization adjustments (in millions): Receipt of cash for First Lien Notes $ 500.0 Loan proceeds from backstop lenders 20.0 Funds received for liquidation of rabbi trust related to certain employee benefits 17.6 Payments to Predecessor creditors (129.9) Transfer of funds for payment of certain professional fees to escrow account (42.7) Payment for certain professional services fees (29.0) Various other (8.6) $ 327.4 (b) Restricted cash Reflects the reorganization adjustment to record the transfer of cash for payment of certain professional fees to restricted cash, which were held in escrow until billings from professionals were received and reconciled at which time the funds in the account were released. (c) Other current asset Reflects certain prepayments incurred upon emergence. (d) Property and Equipment, net Reflects the reorganization adjustment to remove $417.6 million of work-in-process related to the Newbuild Drillships. These values were removed from property and equipment, net, based on the terms of the amended agreements with the Shipyard. As a result of the option to take delivery, we removed the historical work-in-process balances from the balance sheet. (e) Other assets Represents the reorganization adjustments (in millions): Liquidation of rabbi trust related to certain employee benefits $ (17.6) Elimination of right-of-use asset associated with Newbuild Drillships (5.5) Fair value of options to purchase Newbuild Drillships 13.1 $ (10.0) Our supplemental executive retirement plans are non-qualified plans that provided eligible employees an opportunity to defer a portion of their compensation for use after retirement. The plans were frozen to the entry of new participants in 2019 and to future compensation deferrals as of January 1, 2020. Upon emergence, assets previously held in a rabbi trust maintained for the plan were liquidated and the plan was amended. In accordance with the amended agreement with the Shipyard, our leases were terminated and we have eliminated the historical right-of-use asset associated with the berthing locations of Newbuild Drillships. Additionally, upon effectiveness of the plan of reorganization, the amended agreement with the Shipyard provides the Company with the option to purchase the Newbuild Drillships. The reorganization adjustments include an asset that reflects the fair value of the option to purchase the Newbuild Drillships and embedded feature related to the ability, under the amended agreements with the Shipyard, for the equity issued pursuant to this arrangement to be put to the Company for $8.0 million of consideration for each rig, should we choose to take delivery. (f) Accounts payable - trade Reflects the following reorganization adjustments (in millions): Professional fees incurred upon emergence $ 26.1 Payment of professional fees incurred prior to emergence (12.6) Payment of certain accounts payable incurred prior to emergence (0.4) $ 13.1 (g) Accrued liabilities and other Reflects the following reorganization adjustments (in millions): Elimination of lease liabilities associated with Newbuild Drillships $ (5.0) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.1) Payment of certain accrued liabilities incurred prior to emergence (3.3) $ (12.4) In accordance with the amended agreement with the Shipyard, our leases were terminated and we eliminated the historical lease liability associated with the berthing locations of Newbuild Drillships. Accrued post-petition holding costs were also eliminated as a result of the amendments made effective upon emergence. Additionally, reorganization adjustments to accrued liabilities and other includes an amount primarily related to payment of professional fees incurred prior to emergence. (h) Long-term debt Reflects the reorganization adjustment to record the issuance of the $550.0 million aggregate principal amount of First Lien Notes and debt issuance costs of $5.2 million. (i) Other liabilities Reflects the following reorganization adjustments (in millions): Elimination of construction contract intangible liabilities associated with Newbuild Drillships $ (49.9) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.7) Elimination of lease liabilities associated with Newbuild Drillships (0.6) $ (55.2) The reorganization adjustments to other liabilities primarily relate to the elimination of construction contract intangible liabilities associated with the Newbuild Drillships. These construction contract intangible liabilities were recorded in purchase accounting for the original contracting entity. As the amended contract was structured as an option whereby we had the right, not the obligation to take delivery of the rigs, there was no longer an intangible liability associated with the contracts. We have eliminated the historical lease liability associated with the berthing locations of Newbuild Drillships and accrued post-petition holding costs as described in (g) above. (j) Liabilities subject to compromise Reflects the following reorganization adjustments (in millions): Settlement of liabilities subject to compromise $ 7,313.7 Issuance of common stock to Predecessor creditors (721.0) Issuance of common stock to backstop parties (323.8) Payments to Predecessor creditors (129.9) Gain on settlement of liabilities subject to compromise $ 6,139.0 (k) Predecessor ordinary shares, additional paid-in capital and treasury shares Represents the cancellation of the Predecessor's ordinary shares of $82.6 million, additional paid-in capital of $8,644.0 million and treasury stock of $75.5 million. (l) Successor common shares and additional paid-in capital Represents par value of 75.0 million new Common Shares of $0.8 million and capital in excess of par value of $1,078.7 million. (m) Successor stock warrants On the Effective Date and pursuant to the plan of reorganization, Valaris Limited issued an aggregate of 5.6 million Warrants exercisable for up to an aggregate of 5.6 million Common Shares to former holders of Legacy Valaris' equity interests. The fair value of the Warrants as of the Effective Date was $16.4 million. (n) Retained deficit Represents the reorganization adjustments to total equity as follows (in millions): Gain on settlement of liabilities subject to compromise $ (6,139.0) Issuance of Common Shares for backstop premium 29.1 Issuance of Common Shares to the Shipyard 5.4 Write-off of unrecognized share-based compensation expense 16.0 Professional fees and success fees 35.9 Backstop premium 30.0 Impact of newbuild contract amendments 350.7 Reorganization items, net (5,671.9) Cancellation of Predecessor common shares (82.6) Cancellation of Predecessor treasury shares 75.5 Cancellation of Predecessor additional paid in capital (7,856.4) Cancellation of equity component of Predecessor convertible notes (220.0) Cancellation of Predecessor cash and equity compensation plans (583.6) Fair value of Warrants 16.4 $ (14,322.6) Fresh Start Adjustments (o) Other current assets Reflects the fresh start adjustments to record the estimated fair value of other current assets as follows (in millions): Elimination of materials and supplies $ (260.8) Elimination of historical deferred contract drilling expenses (20.3) $ (281.1) Primarily reflects the fresh start adjustment to eliminate the historical balance for materials and supplies as the result of a change in accounting policies upon emergence. Historically, we recognized materials and supplies on the balance sheet when purchased and subsequently expensed items when consumed. Upon emergence from bankruptcy, we elected to change our accounting policies related to materials and supplies whereby materials and supplies will be expensed as a period cost when received. Additionally, a customer arrangement provides that we take title to their materials and supplies for the duration of the contract and return or pay cash for them at the termination of the contract. Together with our policy change on materials and supplies, we elected to record these assets and the obligation to our customer on a net basis as opposed to a gross basis. The fresh start adjustment for the elimination of historical deferred contract drilling expenses primarily relates to deferred mobilization costs, deferred contract preparation costs and deferred certification costs. Costs incurred for mobilization and contract preparation prior to the commencement of drilling services are deferred and subsequently amortized over the term of the related drilling contract. Additionally, 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. These deferred costs had no future economic benefit and were eliminated from the fresh start financial statements. (p) Property and equipment, net Reflects the fresh start adjustments to historical amounts to record the estimated fair value of property and equipment. Furthermore, upon emergence from bankruptcy, we elected to change our accounting policies and have identified the significant components of our drilling rigs and ascribed useful lives based on the expected time until the next required overhaul or the end of the expected economic lives of the components. Prior to emergence, we recorded our drilling rigs as a single asset with a useful life ascribed by the expected useful life of that asset. (q) Notes Receivable from ARO Reflects the fresh start adjustment to record the estimated fair value of the Notes Receivable from ARO. (r) Investment in ARO Reflects the fresh start adjustment to record the estimated fair value of the equity investment in ARO. (s) Other assets Reflects the fresh start adjustments to record the estimated fair value of other assets as follows (in millions): Deferred tax impacts of certain fresh start adjustments $ 21.1 Fair value of contracts with customers 8.5 Fair value adjustments to right-of-use assets 0.4 Elimination of historical deferred contract drilling expenses (16.5) Elimination of other deferred costs (4.6) $ 8.9 The fresh start adjustment for deferred income tax assets represents the estimated incremental deferred income taxes, which reflects the tax effect of the differences between the estimated fair value of certain assets and liabilities recorded under fresh start accounting and the carryover tax basis of those assets and liabilities. The fresh start adjustment to record the estimated fair value of contracts with customers represents the intangible assets recognized for firm customer contracts in place at the Effective Date that have favorable contract terms as compared to current market day rates for comparable drilling rigs. The various factors considered in the adjustment were (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the emergence date. The intangible assets are computed based on the present value of the difference in cash inflows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate. This balance was amortized to operating revenues over the respective remaining contract terms on a straight-line basis. The fresh start adjustment to right-of-use assets reflects the remeasuring of our operating leases as of the emergence date. Certain operating leases had unfavorable terms as of the emergence date, and as a result the right-of-use asset for such leases did not equal the lease liability upon emergence. The fresh start adjustment to eliminate historical deferred contract drilling expenses reflects the noncurrent portion of historical deferred contract drilling expenses described in (o) above as well as the elimination of customer contract intangibles previously recorded in purchase accounting for a 2019 transaction. The fresh start adjustments to eliminate other deferred costs reflect non-operational deferred costs that had no future economic benefit. (t) Accounts payable - trade The fresh start adjustment to accounts payable trade reflects the write off of certain deferred amounts related to our operating leases. This value was eliminated through the remeasurement of our leases as of the emergence date. (u) Accrued liabilities and other Reflects the fresh start adjustments to record the estimated fair value of current liabilities as follows (in millions): Elimination of customer payable balance $ (36.8) Elimination of historical deferred revenues (25.9) Fair value of contracts with customers 0.5 Fair value adjustment to lease liabilities 0.4 $ (61.8) The fresh start adjustment to eliminate the customer payable balance is related to the change in accounting policy to present the balance on a net basis. The fresh start adjustment to eliminate historical deferred reve |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Under our drilling contracts with customers, we provide a drilling rig and drilling services, including rig crews, on a day rate basis. 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 generally 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 December 31, 2023 was between approximately 1 month and 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. Contract Termination - VALARIS DS-11 In 2021, a contract was awarded to VALARIS DS-11 for a project in the U.S. Gulf of Mexico that was expected to commence in mid-2024. In June 2022, the customer terminated the contract. As a result of the contract termination, we received an early termination fee of $51.0 million which is included in revenues on our Consolidated Statements of Operations for the year ended December 31, 2022 (Successor). 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 generally 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. Revenues Related to Reimbursable Expenses We generally receive reimbursements from our customers for purchases of supplies, equipment, personnel services and other services provided at their request. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is recognized during the period in which the corresponding goods and services are consumed once the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer within Operating revenues. 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 unconsolidated joint venture with Saudi Aramco, represent the difference between the amounts billed under the bareboat charter arrangements and lease revenues earned. See “ Note 5 – Equity Method Investment in ARO" for additional details regarding our balances with ARO. Contract assets and liabilities are presented net on our 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 Consolidated Balance Sheets. The following table summarizes our contract assets and contract liabilities (in millions): December 31, 2023 December 31, 2022 Current contract assets $ 1.5 $ 4.6 Noncurrent contract assets $ 4.5 $ 0.7 Current contract liabilities (deferred revenue) $ 116.2 $ 78.0 Noncurrent contract liabilities (deferred revenue) $ 37.6 $ 41.0 Changes in contract assets and liabilities during the period are as follows (in millions): Contract Assets Contract Liabilities Balance as of December 31, 2021 $ 0.3 $ 56.6 Revenue recognized in advance of right to bill customer 9.2 — Increase due to revenue deferred during the period — 156.7 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (41.1) Decrease due to amortization of deferred revenue that was added during the period — (47.1) Decrease due to transfer to receivables and payables during the period (4.2) (6.1) Balance as of December 31, 2022 5.3 119.0 Revenue recognized in advance of right to bill customer 8.4 — Increase due to revenue deferred during the period — 162.9 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (73.1) Decrease due to amortization of deferred revenue that was added during the period — (46.5) Decrease due to transfer to receivables and payables during the period (7.7) (8.5) Balance as of December 31, 2023 $ 6.0 $ 153.8 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 are included in Other current assets and Other assets on our Consolidated Balance Sheets and totaled $85.1 million and $57.3 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor), amortization of such costs totaled $92.9 million, $61.7 million and $22.0 million, respectively. During the four months ended April 30, 2021 (Predecessor), amortization of such costs totaled $7.6 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 are included in Other current assets and Other assets on our Consolidated Balance Sheets and totaled $14.5 million and $16.2 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor), amortization of such costs totaled $12.7 million, $4.7 million and $0.7 million, respectively. During the four months ended April 30, 2021 (Predecessor), amortization of these costs totaled $3.1 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 5 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. The table below reflects the expected future amortization of our contract liabilities and deferred costs recorded as of December 31, 2023. In the case of our contract liabilities related to our bareboat charter arrangements with ARO, the contract liability is not amortized and as such, the amount is reflected in the table below at the end of the current lease term. (In millions) 2024 2025 2026 2027 & Thereafter Total Amortization of contract liabilities $ 116.2 $ 24.7 $ 12.1 $ 0.8 $ 153.8 Amortization of deferred costs $ 75.3 $ 15.9 $ 8.1 $ 0.3 $ 99.6 |
Equity Method Investment in ARO
Equity Method Investment in ARO | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments 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 December 31, 2023, ARO owned eight jackup rigs, had ordered one newbuild jackup rigs and leased eight rigs from us through bareboat charter arrangements (the "Lease Agreements") whereby substantially all operating costs are incurred by ARO. At December 31, 2023, the leased rigs were operating under three-year drilling contracts, or related extensions, with Saudi Aramco. The eight rigs owned by ARO are currently operating under contracts with Saudi Aramco, each with a minimum aggregate contract term of 15 years, provided that the rigs meet the technical and operational requirements of Saudi Aramco. The shareholder agreement governing the joint venture (the "Shareholder Agreement") specifies that ARO shall purchase 20 newbuild jackup rigs over an approximate 10-year period. The first two newbuild jackups were ordered in January 2020, the first of which, Kingdom 1, was delivered and commenced operations in the fourth quarter of 2023, and the second is expected to be delivered in the first half of 2024. ARO is expected to commit to orders for two additional newbuild jackups in the near term. In connection with these plans, we have a potential obligation to fund ARO for newbuild jackup rigs. See “ Note 1 3 Commitments and Contingencies" for additional information. The joint venture partners agreed in the Shareholder 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 is 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 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): Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues $ 496.6 $ 459.5 $ 470.6 Operating expenses Contract drilling (exclusive of depreciation) 365.9 341.8 362.3 Depreciation 65.9 63.4 65.2 General and administrative 22.2 18.7 17.8 Operating income 42.6 35.6 25.3 Other expense, net 31.8 11.1 13.4 Provision for income taxes 8.3 3.8 7.9 Net income $ 2.5 $ 20.7 $ 4.0 December 31, 2023 December 31, 2022 Cash and cash equivalents $ 92.9 $ 176.2 Other current assets 184.0 140.6 Non-current assets 1,081.0 818.1 Total assets $ 1,357.9 $ 1,134.9 Current liabilities $ 136.0 $ 86.3 Non-current liabilities 1,056.8 884.6 Total liabilities $ 1,192.8 $ 970.9 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 of ARO in our 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 also on the date of our 2019 transaction where we acquired the subsidiary that held the joint venture interest. 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 relative to market 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 of ARO in our Consolidated Statements of Operations. The amortization of those basis differences is combined with our 50% interest in ARO's net income. A reconciliation of those components is presented below (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 50% interest in ARO net income (loss) $ 1.3 $ 10.4 $ (4.0) $ 6.0 Amortization of basis differences 12.0 14.1 10.1 (2.9) Equity in earnings of ARO $ 13.3 $ 24.5 $ 6.1 $ 3.1 Related-Party Transactions During the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor) and four months ended April 30, 2021 (Predecessor), revenues recognized by us related to the Lease Agreements were $69.2 million, $56.7 million, $35.4 million and $21.7 million, respectively. Our balances related to the Lease Agreements were as follows (in millions): December 31, 2023 December 31, 2022 Amounts receivable (1) $ 10.2 $ 12.0 Contract liabilities (2) $ 15.9 $ 16.7 Accounts payable (2) $ 57.7 $ 43.2 (1) Amounts receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheets. (2) The per day bareboat charter amount in the Lease Agreements is subject to adjustment based on actual performance of the respective rig and therefore, the corresponding contract liabilities are subject to adjustment during the lease term. Upon completion of the lease term, such amounts become a payable to or a receivable from ARO. During 2017 and 2018, the Company contributed assets to ARO in exchange for the 10-year Notes Receivable from ARO, and as amended in December 2023, bear interest based on a one-year term SOFR, set as of the end of the year prior to the year applicable, plus 2.10%. The Notes Receivable from ARO were adjusted to the estimated fair value as of the Effective Date and the resulting discount to the principal amount is being amortized using the effective interest method to interest income over the remaining terms of the notes. The principal amount and discount of the Notes Receivable from ARO were as follows (in millions): December 31, 2023 December 31, 2022 Principal amount $ 402.7 $ 402.7 Discount (120.4) (148.7) Carrying value $ 282.3 $ 254.0 We collected our 2023 and 2022 interest on the Notes Receivable from ARO from ARO in cash prior to December 31, 2023 and 2022, respectively, and as such, there was no interest receivable for the Notes Receivable from ARO as of December 31, 2023 and 2022. Interest income earned on the Notes Receivable from ARO was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Interest income $ 30.5 $ 11.3 $ 7.0 $ 3.5 Non-cash amortization (1) 28.3 44.9 20.8 — Total interest income on the Notes Receivable from ARO $ 58.8 $ 56.2 $ 27.8 $ 3.5 (1) Represents the amortization of the discount on the Notes Receivable from ARO using the effective interest method to interest income over the term of the notes. In 2022, we recognized non-cash interest income of $14.8 million attributable to a $40.0 million early principal repayment of the Notes Receivable from ARO received in September 2022. Maximum Exposure to Loss The following table summarizes the total assets and liabilities as reflected in our 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 Notes Receivable from ARO; and (3) other receivables and contract assets from ARO, partially offset by contract liabilities as well as payables to ARO. December 31, 2023 December 31, 2022 Total assets $ 417.1 $ 377.8 Less: total liabilities 73.6 59.9 Maximum exposure to loss $ 343.5 $ 317.9 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The carrying values and estimated fair values of certain of our financial instruments were as follows (in millions): December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Second Lien Notes (1) $ 1,079.3 $ 1,126.1 $ — $ — First Lien Notes (1) — — 542.4 545.9 Long-term debt $ 1,079.3 $ 1,126.1 $ 542.4 $ 545.9 Long-term notes receivable from ARO (2) $ 282.3 $ 423.5 $ 254.0 $ 336.7 (1) The estimated fair value of the 8.375% Senior Secured Second Lien Notes due 2030 (the "Second Lien Notes") and Senior Secured First Lien Notes due 2028 (the "First Lien Notes"), which were discharged in full on April 3, 2023, were determined using quoted market prices, which are level 1 inputs. (2) The estimated fair value of our Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium, which are considered to be level 2 inputs. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in millions): December 31, 2023 December 31, 2022 Drilling rigs and equipment $ 1,312.5 $ 1,036.5 Work-in-progress (1) 537.0 59.8 Other 39.5 38.2 $ 1,889.0 $ 1,134.5 (1) Work-in-progress as of December 31, 2023 includes the Newbuild Drillships, which were purchased for approximately $337.0 million, and a $13.1 million asset representing the fair value of the corresponding purchase option and embedded put option which was reclassified from Other assets upon purchase of the rigs. In December 2023, when the Company exercised its options to purchase the Newbuild Drillships, the corresponding put options expired and the Shipyard retained the Common shares issued to them in the plan of reorganization. See " Note 3 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. Successor In June 2022, the drilling contract previously awarded to VALARIS DS-11 was terminated. As of the date of termination, we had incurred costs to upgrade the rig pursuant to the requirements of the contract. Costs incurred related to these capital upgrades were included in work-in-progress and upon termination were determined to be impaired. We recorded a pre-tax, non-cash loss on impairment in the second quarter of 2022 of $34.5 million. See " Note 4 - Revenue from Contracts with Customers" for additional information regarding the termination. 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 sold While taking into account certain restrictions on the sales of assets under our Indenture dated as of April 19, 2023 (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. Gains recognized on sales of assets are included in Other, net on the Consolidated Statements of Operations. Successor During the year ended December 31, 2023 (Successor), we recognized a pre-tax gain of $27.3 million for the sale of VALARIS 54. During the year ended December 31, 2022 (Successor), we recognized an aggregate pre-tax gain of $130.5 million for the sales of VALARIS 113, VALARIS 114, VALARIS 36 and VALARIS 67. Additionally, we recognized pre-tax gains of $3.2 million and $7.0 million related to additional proceeds received for our 2021 sale of VALARIS 100 and 2020 sale of VALARIS 68, respectively, resulting from post-sale conditions of those sale agreements. During the eight months ended December 31, 2021, we sold VALARIS 22, VALARIS 37, VALARIS 100 and VALARIS 142, resulting in a pre-tax gain of $20.7 million. Predecessor In April 2021, we sold VALARIS 101 resulting in a pre-tax gain of $5.3 million. In March 2021, we sold our Australia office building resulting in an insignificant pre-tax gain. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT First Lien Notes On the Effective Date, in accordance with the plan of reorganization and Backstop Commitment Agreement, dated August 18, 2020, the Company consummated the rights offering of the First Lien Notes and associated Common Shares in an aggregate principal amount of $550.0 million. The First Lien Notes were scheduled to mature on April 30, 2028 and accrued interest, at our option, at a rate of: (1) 8.25% per annum, payable in cash; (2) 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 (3) 12% per annum, with the entirety of such interest to be paid in kind. Interest was due semi-annually in arrears on May 1 and November 1 of each year and was computed on the basis of a 360-day year of twelve 30-day months. The Company incurred $5.2 million in issuance costs in 2021 associated with the First Lien Notes. In August 2022, the Company completed a consent solicitation pursuant to which the Company amended the indenture that governed the First Lien Notes to (1) implement a consolidated net income builder basket for restricted payments, increase the general basket for restricted payments from $100.0 million to $175.0 million and make other incremental changes to the Company’s restricted payments capacity and (2) increase the general basket for investments from the greater of $100.0 million and 4.0% of total assets to the greater of $175.0 million and 6.5% of total assets. The Company incurred $3.9 million of costs in connection with the consent solicitation, comprised of a consent fee paid to consenting holders and professional fees. These costs along with the issuance costs incurred in 2021 were amortized into interest expense over the term of the First Lien Notes using the effective interest method. On April 3, 2023, the Company issued a notice of conditional redemption to the holders of the First Lien Notes at a redemption price equal to 104.0% of the aggregate $550.0 million principal amount of the First Lien Notes plus accrued and unpaid interest to, but not including, the redemption date (the “Redemption Price”). On April 19, 2023, in connection with the issuance of our Second Lien Notes, as discussed below, the Company discharged its obligations under the indenture governing the First Lien Notes and deposited the Redemption Price with Wilmington Savings Fund Society, as trustee under such indenture. The First Lien Notes were redeemed on May 3, 2023 for an aggregate redemption price of $571.8 million (excluding accrued and unpaid interest) with a portion of the net proceeds from the issuance of the Initial Second Lien Notes, as discussed below. We accounted for the redemption as an extinguishment of debt and recognized a corresponding loss of $29.2 million, which is included in our Condensed Consolidated Statements of Operations for the year ended December 31, 2023. Second Lien Notes On April 19, 2023, the Company and Valaris Finance Company LLC (“Valaris Finance”), a wholly-owned subsidiary, issued and sold $700.0 million aggregate principal amount of Second Lien Notes (the "Initial Second Lien Notes") in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Initial Second Lien Notes were issued at par for net proceeds of $681.4 million, after deducting the initial purchasers’ discount and offering expenses. A portion of the proceeds were used to fund the redemption of all of the outstanding First Lien Notes as discussed above. On August 21, 2023, the Company and Valaris Finance issued $400.0 million aggregate principal amount of additional Second Lien Notes (the "Additional Notes") in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. The Additional Notes were issued at 100.75% of par, plus accrued interest from April 19, 2023. The net proceeds were approximately $396.9 million after deducting the initial purchasers’ discount and estimated offering expenses, and excluding accrued interest received of $11.4 million. The Initial Second Lien Notes and the Additional Notes (together, the "Second Lien Notes") were issued under the Indenture, and mature on April 30, 2030. The Second Lien Notes bear an interest rate of 8.375% per annum with an effective interest rate of 8.76%. Interest is payable semi-annually in arrears on April 30 and October 30 of each year, beginning on October 30, 2023. The Second Lien Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by the Guarantors and by each of the Company’s future restricted subsidiaries (other than Valaris Finance) that guarantees any debt of the Issuers or any guarantor under certain future debt in an aggregate principal amount in excess of a certain amount. The Second Lien Notes and the related guarantees are secured on a second-priority basis by the Collateral (as defined below). On or after April 30, 2026, the Issuers may, at their option, redeem all or any portion of the Second Lien Notes, at once or over time, at the redemption prices set forth below, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The following prices are for Second Lien Notes redeemed during the 12-month period commencing on April 30 of the years set forth below, and are expressed as percentages of principal amount: Redemption Year Price 2026 104.188% 2027 102.094% 2028 and thereafter 100.000% At any time prior to April 30, 2026, the Issuers may, on any one or more occasions, redeem up to 40.0% of the aggregate principal amount of the Second Lien Notes issued under the Indenture (including any additional Second Lien Notes issued in the future) with an amount equal to or less than the net cash proceeds of certain equity offerings, at a redemption price equal to 108.375% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to but not including, the redemption date. In addition, at any time prior to April 30, 2026, the Issuers may redeem up to 10.0% of the aggregate principal amount of the Second Lien Notes during any twelve-month period at a redemption price equal to 103.0% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date. At any time prior to April 30, 2026, the Issuers may redeem some or all of the Second Lien Notes at a price equal to 100.0% of the principal amount of the Second Lien Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus a “make-whole” premium. Upon the occurrence of certain Change of Control Triggering Event (as defined in the Indenture), the Issuers may be required to make an offer to repurchase all of the Second Lien Notes then outstanding at a price equal to 101.0% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the repurchase date. The Indenture contains covenants that, among other things, restrict the Company’s ability and the ability of certain of its subsidiaries to: (i) incur additional debt and issue certain preferred stock; (ii) incur or create liens; (iii) make certain distributions, investments and other restricted payments; (iv) sell or otherwise dispose of certain assets; (v) engage in certain transactions with affiliates; and (vi) merge, consolidate, amalgamate or sell, transfer, lease or otherwise dispose of all or substantially all of the Company’s assets. These covenants are subject to important exceptions and qualifications. In addition, many of these covenants will be suspended with respect to the Second Lien Notes during any time that the Second Lien Notes have investment grade ratings from at least two rating agencies and no default with respect to the Second Lien Notes has occurred and is continuing. As of December 31, 2023, we were in compliance with our covenants under the Indenture. Senior Secured Revolving Credit Facility On April 3, 2023, the Company entered into a senior secured revolving credit agreement (the “Credit Agreement”). The Credit Agreement provides for commitments permitting borrowings of up to $375.0 million (which may be increased, subject to the satisfaction of certain conditions and the agreement of lenders to provide such additional commitments, by an additional $200.0 million pursuant to the terms of the Credit Agreement) and includes a $150.0 million sublimit for the issuance of letters of credit. Valaris Finance and certain other subsidiaries of the Company (together with Valaris Finance, the “Guarantors”) guarantee the Company’s obligations under the Credit Agreement, and the lenders have a first priority lien on the assets securing the Credit Agreement. The commitments under the Credit Agreement became available to be borrowed on April 19, 2023 (the "Availability Date"). The Credit Agreement and the related guarantees are secured on a first-priority basis, subject to permitted liens, by (a) first preferred ship mortgages over each vessel owned by us and the Guarantors as of the Availability Date, with certain exceptions (the “Collateral Vessels”); (b) first priority assignments of certain insurances and requisition compensation in respect of the Collateral Vessels; (c) first priority pledges of all equity interests in our subsidiaries that own Collateral Vessels and certain subsidiaries that hold equity interests in entities that own vessels (the “Collateral Rig Owners”); (d) first priority assignments of earnings of the Collateral Vessels from the Collateral Rig Owners; (e) any vessels and other assets of ours and the Guarantors that are pledged, at our option, to secure the Credit Agreement; and (f) all proceeds thereof (the "Collateral"). Amounts borrowed under the Credit Agreement are subject to an interest rate per annum equal to, at our option, either (a) a base rate determined as the greatest of (i) a prime rate, (ii) the federal funds rate plus 0.5% and (iii) Term SOFR (as defined in the Credit Agreement) for a one month interest period plus 1.1% (such base rate to be subject to a 1% floor) or (b) Term SOFR plus 0.10% (subject to a 0% floor), plus, in each case of clauses (a) and (b) above, an applicable margin ranging from 1.50% to 3.00% and 2.50% to 4.00%, respectively, based on the credit ratings that are one notch higher than the corporate family ratings provided by Standard & Poor’s Financial Services LLC (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) with respect to Valaris Limited. In addition to paying interest on outstanding borrowings under the Credit Agreement, we are required to pay a quarterly commitment fee to the lenders under the Credit Agreement with respect to the average daily unutilized commitments thereunder at a rate ranging from 0.375% to 0.75% depending on the credit ratings that are one notch higher than the corporate family ratings provided by S&P and Moody’s with respect to Valaris Limited. With respect to each letter of credit issued pursuant to the Credit Agreement, we are required to pay a letter of credit fee equal to the applicable margin in effect for Term SOFR loans and a fronting fee in an amount to be mutually agreed between us and the issuer of such letter of credit. We are also required to pay customary agency fees in respect of the Credit Agreement. The Credit Agreement contains various covenants that limit, among other things, our and our restricted subsidiaries’ ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to shareholders; enter into transactions with affiliates; enter into sale-leaseback transactions; and enter into a merger, amalgamation, consolidation or sale of assets. Further, the Credit Agreement contains financial covenants that require us to maintain (i) a minimum book value of equity to total assets ratio, (ii) a minimum interest coverage ratio and (iii) a minimum amount of liquidity. As of December 31, 2023, we were in compliance in all material respects with our covenants under the Credit Agreement. We had no amounts outstanding under the Credit Agreement as of December 31, 2023. Interest Expense Interest expense totaled $68.9 million for the year ended December 31, 2023 (Successor) which was net of capitalized interest of $5.6 million for capital projects. Interest expense totaled $45.3 million for the year ended December 31, 2022 (Successor) which was net of capitalized interest of $1.2 million for capital projects. Interest expense totaled $31.0 million and $2.4 million for the eight months ended December 31, 2021 (Successor) and the four months ended April 30, 2021 (Predecessor), respectively. Amortization of debt premium and issuance costs was $5.0 million, $1.0 million and $0.5 million for the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor), respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY Activity in our various shareholders' equity accounts for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) were as follows (in millions): Shares Issued Par Value Additional Warrants Retained AOCI Treasury Non-controlling BALANCE, December 31, 2020 (Predecessor) 206.1 $ 82.6 $ 8,639.9 $ — $ (4,183.8) $ (87.9) $ (76.2) $ (4.3) Net income (loss) — — — — (4,467.0) — — 3.2 Shares issued under share-based compensation plans, net — — (0.7) — — — 0.7 — Net changes in pension and other postretirement benefits — — — — — 0.1 — — Share-based compensation cost — — 4.8 — — — — — Net other comprehensive loss — — — — — (5.6) — — Cancellation of Predecessor equity (206.1) (82.6) (8,644.0) — 8,650.8 93.4 75.5 — Issuance of Successor Common Shares and Warrants 75.0 0.8 1,078.7 16.4 — — — — BALANCE, April 30, 2021 (Predecessor) 75.0 $ 0.8 $ 1,078.7 $ 16.4 $ — $ — $ — $ (1.1) BALANCE, May 1, 2021 (Successor) 75.0 $ 0.8 $ 1,078.7 $ 16.4 $ — $ — $ — $ (1.1) Adjustment to unrecognized tax benefits — — — — 11.0 — — — Net income (loss) — — — — (27.4) — — 3.8 Net changes in pension and other postretirement benefits — — — — — (9.1) — — Share-based compensation cost — — 4.3 — — — — — BALANCE, December 31, 2021 (Successor) 75.0 $ 0.8 $ 1,083.0 $ 16.4 $ (16.4) $ (9.1) $ — $ 2.7 Net income — — — — 176.5 — — 5.3 Share-based compensation cost — — 17.4 — — — — Shares issued under share-based compensation plans, net 0.2 — — — — — — — Net changes in pension and other postretirement benefits — — — — — 23.8 — — Shares withheld for taxes on vesting of share-based awards — — (2.5) — — — — — BALANCE, December 31, 2022 (Successor) 75.2 $ 0.8 $ 1,097.9 $ 16.4 $ 160.1 $ 14.7 $ — $ 8.0 Net income — — — — 865.4 — — 1.4 Share-based compensation cost — — 27.3 — — — — — Shares issued under share-based compensation plans, net 0.2 — — — — — — — Repurchase of Common Shares — — — — — — (200.1) — Net changes in pension and other postretirement benefits — — — — — 10.8 — — Shares withheld for taxes on vesting of share-based awards — — (5.4) — — — — — Net other comprehensive loss — — — — — (0.3) — — BALANCE, December 31, 2023 (Successor) 75.4 $ 0.8 $ 1,119.8 $ 16.4 $ 1,025.5 $ 25.2 $ (200.1) $ 9.4 Valaris Limited Share Capital As of the Effective Date, the authorized share capital of Valaris Limited is $8.5 million divided into 700.0 million Common Shares of a par value of $0.01 each and 150.0 million preference shares of a par value of $0.01. Issuance of Common Shares On the Effective Date, pursuant to the plan of reorganization, we issued 75.0 million Common Shares. Cancellation of Predecessor Equity and Issuance of Warrants On the Effective Date and pursuant to the plan of reorganization, the Legacy Valaris Class A ordinary shares were cancelled and the Company issued 5.6 million Warrants to the former holders of the Company's equity interests outstanding prior to the Effective Date. The Warrants 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. Management Incentive Plan In accordance with the plan of reorganization, Valaris Limited adopted the MIP as of the Effective Date and authorized and reserved 9.0 million Common Shares for issuance pursuant to equity incentive awards to be granted under the MIP. See " Note 1 0 - Share Based Compensation" for information on equity awards granted under the MIP subsequent to the Effective Date. Share Repurchase Program In 2022, our board of directors authorized a share repurchase program under which we may purchase up to $100.0 million of our outstanding Common Shares. In April 2023, the board of directors authorized an increase of this amount to $300.0 million and in February 2024, they authorized a further increase to $600.0 million. The share repurchase program does not have a fixed expiration, may be modified, suspended or discontinued at any time and is subject to compliance with applicable covenants and restrictions under our financing agreements. During the year ended December 31, 2023, we repurchased 3.0 million shares at an aggregate cost of $200.0 million, exclusive of fees, at an average price of $66.77. There were no share repurchases during the year ended December 31, 2022. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share Based Compensation | SHARE BASED COMPENSATION On the Effective Date and pursuant to the plan of reorganization, all of the Predecessor's ordinary shares were cancelled. In accordance with the plan of reorganization, all agreements, instruments and other documents evidencing, relating or otherwise connected with any of Legacy Valaris' equity interests outstanding prior to the Effective Date, including all equity-based awards, were cancelled. Therefore, any Predecessor remaining long-term incentive plans were cancelled. See " Note 2 - Chapter 11 Proceedings" for additional information. Valaris Limited adopted the MIP as of the Effective Date and authorized and reserved 9.0 million Common Shares for issuance pursuant to equity incentive awards to be granted under the MIP, which may be in the form of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and cash awards or any combination thereof. As of December 31, 2023, there were 6.8 million shares available for issuance under the MIP. Successor Awards Time-Based Share Awards Under the Company's MIP, time-based restricted stock unit awards have been granted to certain employees and senior officers which generally vest ratably over a three-year period from the date of grant. The grant-date fair value per share for these time-based restricted stock awards is equal to the closing price of the Company's stock on the grant date. For senior officers, delivery of the shares underlying certain vested restricted stock unit awards is deferred until the third anniversary of the date of grant. Non-employee directors received a one-time grant of time-based restricted awards upon our emergence from the Chapter 11 Cases which vest ratably over a three-year period from the date of grant. Additionally, non-employee directors receive an annual grant of time-based restricted awards which vest in full on the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant. Non-employee directors are permitted to elect to receive deferred share awards which can be settled and delivered on the six-month anniversary following the termination of the director's service or a specific pre-determined date. Our time-based share awards do not have voting or participating rights as the dividend equivalent provided for in the award agreement is forfeitable (except in certain limited circumstances) and further our debt agreements limit our ability to pay dividends and none have been declared. Compensation expense for share awards is measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). Our compensation cost is reduced for forfeited awards in the period in which the forfeitures occur. The following table summarizes Successor time-based share award compensation expense recognized (in millions): Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Contract drilling $ 6.8 $ 3.9 $ 1.6 General and administrative 9.0 6.8 2.0 15.8 10.7 3.6 Tax benefit (1.6) (0.9) (0.2) Total $ 14.2 $ 9.8 $ 3.4 As of December 31, 2023, there was $23.2 million of total estimated unrecognized compensation cost related to time-based share awards, which has a weighted-average remaining vesting period of 1.3 years. The following tables summarizes the value of Successor time-based share awards granted and vested: Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Weighted-average grant date fair value of share awards granted (per share) $ 63.22 $ 45.39 $ 26.07 Total fair value of share awards vested during the period (in millions) (1) $ 25.2 $ 12.8 $ — (1) No share awards vested during the eight months ended December 31, 2021 (Successor). The following table summarizes time-based share awards activity for the year ended December 31, 2023 (Successor) (shares in thousands): Share Awards Awards Weighted-Average Share awards as of December 31, 2022 861 $ 33.54 Granted 295 $ 63.22 Vested (1) (366) $ 32.89 Forfeited (32) $ 36.68 Share awards as of December 31, 2023 758 $ 45.29 (1) The vested share awards include 65,882 awards with a weighted average grant date fair value of $35.40 per share, for which delivery of the shares is deferred until the third anniversary of the date of grant. As of December 31, 2023, these awards had a weighted average remaining contractual life of 0.6 years and a total fair value of $4.5 million. Performance Awards Under the Company's MIP, performance awards may be issued to our senior officers. Performance awards generally vest at the end of a three-year measurement period based on attainment of performance goals. The performance awards granted in 2021 and 2022 are based on three performance goals and subject to achievement of those performance goals based on (a) designated share price hurdles whereby our closing stock price must equal or exceed certain market price targets for ninety consecutive trading days (the "Share Price Objective"); (b) relative return on capital employed ("ROCE") as compared to a specified peer group, all as defined in the award agreements (the "ROCE Objective"), and (c) specified strategic goals as established by the Compensation Committee of the board of directors (the "Strategic Goal Objective" and together with the ROCE Objective, the "Performance-Based Objectives"). These awards are payable in equity following a three-year performance period and subject to attainment of such objectives ranging from 0% to 150% of target performance under such objectives. The performance awards granted in 2023 include awards which are subject to the achievement of goals based on our absolute total shareholder return and our total shareholder return relative to a specified peer group (the "TSR Objectives" and together with the Share Price Objective, the "Market-Based Objectives"). These awards are payable in equity at a range from 0% to 200% of target performance following a three-year performance period. Also, in 2023, incremental awards based on the Strategic Goal Objective were granted. The estimated probable outcome of attainment of the specified performance goals is based primarily on relative performance over the requisite performance period. Any subsequent changes in this estimate as it relates to the Performance-Based Objectives are recognized as a cumulative adjustment to compensation cost in the period in which the change in estimate occurs. Compensation cost for the Market-Based Objectives is recognized as long as the requisite service period is completed and will not be reversed even if the Market-Based Objectives are never satisfied. Compensation expense for performance awards is recognized over the requisite service period using the accelerated method and is reduced for forfeited awards in the period in which the forfeitures occur. The fair value of the performance awards granted during the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor) are measured on the date of grant. The grant-date fair value per unit for the portion of the performance awards related to Performance-Based Objectives was equal to the closing price of the Company's stock on the grant date. The portion of these awards that were based on the Company's achievement of Market-based Objectives were valued at the date of grant using a Monte Carlo simulation with the following weighted average assumptions for the grants made over the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor): Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Expected price volatility 60 % 61 % 61 % Expected dividend yield — — — Risk-free interest rate 4.32 % 3.49 % 0.73 % The expected price volatility assumption is estimated using market data for certain peer companies during periods in which our own trading history is limited. As our trading history increases, it will bear greater weight in determining our expected price volatility assumption. The weighted average grant-date fair value of performance awards granted during the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor) was $62.09, $38.08 and $15.93, respectively. The following table summarizes the performance award activity for the year ended December 31, 2023 (Successor) (shares in thousands): Awards (2) Weighted Average Grant Date Fair Value Price (2) Balance as of December 31, 2022 767 $ 21.77 Granted - Market-Based Objectives (1) 98 $ 59.28 Granted - Performance-Based Objectives (1) 29 $ 71.63 Total Granted 127 $ 62.09 Balance as of December 31, 2023 894 $ 27.49 (1) The number of awards granted reflects the shares that would be granted if the target level of performance were to be achieved. The number of shares actually issued after considering forfeitures may range from zero to 239,000. (2) There were no forfeited or vested shares for the year ended December 31, 2023 (Successor). During the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor), we recognized of $11.7 million, $6.7 million and $0.7 million of compensation expense for performance awards, respectively, which was included in General and administrative expense in our Consolidated Statements of Operations. As of December 31, 2023, there was $10.1 million of total estimated unrecognized compensation cost related to performance awards, which has a weighted-average remaining vesting period of 1.2 years. Predecessor Awards Time-Based Share Awards and Cash-Settled Awards The Predecessor granted share awards and share units (collectively "share awards") and share units to be settled in cash ("cash-settled awards"), which generally vested at a rate of 33% per year. Additionally, non-employee directors were permitted to elect to receive deferred share awards. Deferred share awards vested at the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant but were not to be settled until the director terminated service from the board of directors. Deferred share awards were to be settled in cash, shares or a combination thereof at the discretion of the compensation committee. The Predecessor's non-vested share awards had voting and dividend rights effective on the date of grant, and the non-vested share units had dividend rights effective on the date of grant. Compensation expense for share awards was measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). Compensation expense for cash-settled awards was remeasured each quarter with a cumulative adjustment to compensation cost during the period based on changes in the Legacy Valaris share price. Compensation cost was also reduced for forfeited awards in the period in which the forfeitures occurred. During the four months ended April 30, 2021 (Predecessor) we recognized $4.8 million of compensation expense for these awards, of which $2.4 million was included in Contract drilling expense and $2.4 million was included in General and administrative expense in our Consolidated Statements of Operations. As discussed above, in accordance with the plan of reorganization, the unvested awards of employees, senior executive officers and non-employee directors remaining on the Effective Date were cancelled for no consideration. Share Appreciation Rights Share Appreciation Rights ("SARs") granted to employees under our Predecessor incentive plans were accounted for as equity awards. As of April 30, 2021, there were 319,641 SARs outstanding, all of which were fully vested. In accordance with the plan of reorganization, these remaining outstanding SARs were cancelled. Share Option Awards |
Pension and Other Post-retireme
Pension and Other Post-retirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-retirement Benefits | PENSION AND OTHER POST-RETIREMENT BENEFITS We have defined-benefit pension plans and post-retirement health and life insurance plans that provide benefits upon retirement for certain full-time employees. The defined-benefit pension plans include: (1) a pension plan which was amended in 2018 to freeze any future benefit accrual whereby eligible employees no longer receive pay credits in the plan and newly hired employees are not eligible to participate; and (2) supplemental executive retirement plans, which are also frozen, that provided eligible employees an opportunity to defer a portion of their compensation for use after retirement. Additionally, we have frozen retiree life and medical supplemental plans which provide post-retirement health and life insurance benefits. The following table presents the changes in benefit obligations and plan assets for the years ended December 31, 2023 and 2022 and the funded status and weighted-average assumptions used to determine the benefit obligation at the measurement date (dollars in millions): Year Ended December 31, 2023 2022 Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Projected benefit obligation: BALANCE at the beginning of the period $ 611.5 $ 11.6 $ 623.1 $ 827.9 $ 15.6 $ 843.5 Interest cost 30.6 0.6 31.2 22.0 0.4 22.4 Actuarial loss (gain) 6.1 (0.4) 5.7 (191.0) (3.8) (194.8) Plan settlements — — — (1.4) — (1.4) Benefits paid (41.7) (0.8) (42.5) (46.0) (0.6) (46.6) BALANCE at the end of the period $ 606.5 $ 11.0 $ 617.5 $ 611.5 $ 11.6 $ 623.1 Plan assets Fair value, at the beginning of the period $ 458.5 $ — $ 458.5 $ 634.6 $ — $ 634.6 Actual return 48.5 — 48.5 (132.2) — (132.2) Employer contributions 5.9 — 5.9 3.5 — 3.5 Plan settlements — — — (1.4) — (1.4) Benefits paid (41.7) — (41.7) (46.0) — (46.0) Fair value, at the end of the period $ 471.2 $ — $ 471.2 $ 458.5 $ — $ 458.5 Net benefit liabilities $ 135.3 $ 11.0 $ 146.3 $ 153.0 $ 11.6 $ 164.6 Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (3.6) $ (1.1) $ (4.7) $ (3.7) $ (1.1) $ (4.8) Other liabilities (long-term) (131.7) (9.9) (141.6) (149.3) (10.5) (159.8) Net benefit liabilities $ (135.3) $ (11.0) $ (146.3) $ (153.0) $ (11.6) $ (164.6) Accumulated contributions less than net periodic benefit cost $ (152.9) $ (18.9) $ (171.8) $ (159.8) $ (19.5) $ (179.3) Amounts not yet reflected in net periodic benefit cost: Actuarial loss 17.8 7.9 25.7 7.0 7.9 14.9 Prior service cost (0.2) — (0.2) (0.2) — (0.2) Total accumulated other comprehensive income $ 17.6 $ 7.9 $ 25.5 $ 6.8 $ 7.9 $ 14.7 Net benefit liabilities $ (135.3) $ (11.0) $ (146.3) $ (153.0) $ (11.6) $ (164.6) Weighted-average assumptions: Discount rate 4.97 % 5.00 % 5.21 % 5.30 % Cash balance interest credit rate 3.26 % N/A 3.23 % N/A The projected benefit obligations for pension benefits in the preceding table reflect the actuarial present value of benefits accrued based on services rendered to date assuming the actual or assumed expected date of separation for retirement. The accumulated benefit obligation, which is presented below for all plans in the aggregate at December 31, 2023 and 2022, is based on services rendered to date, but exclude the effect of future salary increases (in millions): 2023 2022 Accumulated benefit obligation $ 617.5 $ 623.1 The components of net periodic pension, retiree medical income and the weighted-average assumptions used to determine net periodic pension and retiree medical income were as follows (dollars in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Interest cost $ 31.2 $ 22.4 $ 15.6 $ 6.6 Expected return on plan assets (31.4) (38.3) (24.7) (12.1) Amortization of net (gain) loss (0.7) (0.1) — 0.1 Settlement (gain) loss recognized (1) — (0.4) 0.4 — Net periodic pension and retiree medical income (2) $ (0.9) $ (16.4) $ (8.7) $ (5.4) Discount rate 5.21 % 2.73 % 2.84 % 2.30 % Expected return on assets 7.10 % 6.26 % 6.03 % 6.03 % Cash balance interest credit rate 3.23 % 3.05 % 2.94 % 2.94 % (1) Settlement accounting is necessary when actual lump sums paid during a fiscal year exceed the sum of the service cost and interest cost for the year. During the year ended December 31, 2022 and eight months ended December 31, 2021 (Successor), the settlement threshold was reached for certain of our pension plans and we recognized a corresponding settlement (gain) loss in our Consolidated Statements of Operations. (2) All components of Net periodic pension and retiree medical income are included in Other, net, in our Consolidated Statements of Operations. The American Rescue Plan Act of 2021, which was passed in March 2021, provided funding relief for U.S. qualified pension plans which lowered our pension contribution requirements for the years ended December 31, 2023 and 2022. We currently expect to contribute approximately $23.7 million to our pension plans and to directly pay other post-retirement benefits of approximately $1.2 million in 2024. 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. The pension plans' investment objectives for fund assets are to: achieve a rate of return such that contributions are minimized and future assets are available to fund liabilities, maintain liquidity sufficient to pay benefits when due, diversify among asset classes so that assets earn a reasonable return with an acceptable level of risk and gradually de-risk the plan by increasing the allocation of investments which track the overall liabilities of the plan as the ratio of assets to liabilities improves and economic conditions warrant. The plans employ several active managers with proven long-term records in their specific investment discipline. Target allocations among asset categories and the fair value of each category of plan assets as of December 31, 2023 and 2022, are presented below. The plans will reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in millions): December 31, 2023 December 31, 2022 Target range (1) Total Total Equities: U.S. equity: 23.9% to 33.9% U.S. large cap $ 105.5 $ 99.4 U.S. small/mid cap 28.7 25.4 Global Low Volatility Equity 3.4% to 13.4% 38.5 38.0 Non-U.S. equity: 19.7% to 29.7% International all cap 51.3 50.7 International small cap 23.1 22.4 Emerging markets 39.3 39.7 Real estate equities 3% to 13% 40.4 49.0 Fixed income: 25% to 35% Long-term corporate bonds 46.6 45.3 U.S. Treasury STRIPS 93.0 83.7 Cash and equivalents $0 - $5.0 4.8 4.9 Total $ 471.2 $ 458.5 (1) Our investment policy only sets allocation target ranges for general asset classes and not specific investment types. All of our investments, other than cash and cash equivalents, are measured at fair value using the net asset value per share (or its equivalent) practical expedient and therefore are not categorized in the fair value hierarchy. Cash and cash equivalents are considered Level 1 as they were valued at cost, which approximates fair value. Assets in the U.S. equities category include investments in common and preferred stocks (and equivalents such as American Depository Receipts and convertible bonds) and may be held through separate accounts, commingled funds or an institutional mutual fund. Assets in the global low volatility equities include investments in a broad range of developed market global equity securities and may be held through a commingled or institutional mutual fund. Assets in the international equities category include investments in a broad range of international equity securities, including both developed and emerging markets, and may be held through a commingled or institutional mutual fund. The real estate category includes investments in pooled and commingled funds whose objectives are diversified equity investments in income-producing properties. Each real estate fund is intended to provide broad exposure to the real estate market by property type, geographic location and size and may invest internationally. Securities in the fixed income categories include U.S. government, corporate, mortgage- and asset-backed securities and Yankee bonds and should be rated investment grade or above. Investments in this category should have an average investment rating of “A” or better. To develop the expected long-term rate of return on assets assumption, we considered the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the plan's other asset classes and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based upon the current asset allocation to develop the expected long-term rate of return on assets assumption for the plan, which decreased to 6.88% at December 31, 2023 from 7.10% at December 31, 2022. Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in millions): Pension Benefits Other Post-Retirement Benefits Year ended December 31, 2024 $ 42.4 $ 1.2 2025 41.2 1.0 2026 40.7 0.9 2027 40.4 0.9 2028 40.1 0.8 2029 through 2033 193.0 3.7 Savings Plans We have savings plans, (the "Savings Plan", the "Multinational Savings Plan", the "Limited Retirement Plan"), which cover eligible employees as defined within each plan. The Savings Plan includes a 401(k) savings plan feature, which allows eligible employees to make tax-deferred contributions to the plans. Contributions made to the Multinational Savings Plan may or may not qualify for tax deferral based on each plan participant's local tax requirements. The Limited Retirement Plan allows eligible employees in the U.K. to make tax-deferred contributions to the plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | INCOME TAXES We generated profits of $30.7 million $39.7 million, $253.4 million and $373.1 million before income taxes in the U.S. for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively. We generated profits of $53.5 million and $185.2 million, and losses of $240.6 million and $4.8 billion before income taxes in non-U.S. jurisdictions for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively. The components of our provision for income taxes are summarized as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Current income tax expense (benefit): U.S. $ (30.3) $ 12.4 $ 5.5 $ — Non-U.S. 34.1 22.8 52.2 34.4 3.8 35.2 57.7 34.4 Deferred income tax expense (benefit): U.S. 1.9 8.5 (6.6) — Non-U.S. (788.3) (0.6) (14.7) (18.2) (786.4) 7.9 (21.3) (18.2) Total income tax expense (benefit) $ (782.6) $ 43.1 $ 36.4 $ 16.2 Deferred Taxes The components of deferred income tax assets and liabilities are summarized as follows (in millions): December 31, 2023 December 31, 2022 Deferred tax assets : Net operating loss carryforwards $ 3,308.9 $ 3,028.7 Property and equipment 1,535.1 1,454.8 Interest limitation carryforwards 123.4 193.4 Foreign tax credits 44.7 60.7 Employee benefits, including share-based compensation 41.6 43.1 Premiums on long-term debt 6.0 8.1 Other 14.4 20.1 Valuation allowance (4,192.4) (4,720.3) Total deferred tax assets 881.7 88.6 Deferred tax liabilities (26.8) (19.4) Net deferred tax asset $ 854.9 $ 69.2 The realization of substantially all of our deferred tax assets is dependent upon generating sufficient taxable income during future periods in various jurisdictions in which we operate. We rely on projected taxable income from both current and future drilling contracts for the recognition of deferred tax assets. Realization of certain of our deferred tax assets is not assured. We recognize a valuation allowance for deferred tax assets when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized. The amount of deferred tax assets considered realizable could increase or decrease in the near-term if our estimates of future taxable income change. As of December 31, 2023, we had gross deferred tax assets of $3.3 billion relating to $14.2 billion of net operating loss ("NOL") carryforwards, $44.7 million of U.S. foreign tax credits (“FTCs”), and $123.4 million of U.S., Luxembourg and U.K. interest limitation carryforwards, which can be used to reduce our income taxes payable in future years. NOL carryforwards, which were generated in various jurisdictions worldwide, include $13.2 billion that do not expire and $1.0 billion that will expire, if not utilized, between 2024 and 2040. Deferred tax assets for NOL carryforwards as of December 31, 2023 include $2.4 billion, $607.5 million, $88.6 million, and $78.0 million pertaining to NOL carryforwards in Luxembourg, the United States, Switzerland, and the U.K., respectively. The U.S. FTCs expire between 2024 and 2026. Interest limitation carryforwards generally do not expire. Additionally, as a result of our emergence from bankruptcy, the utilization of certain U.S. deferred tax assets including, but not limited to, NOL carryforwards, FTCs, and interest limitation carryforwards is limited to $0.5 million annually. We had a $4.2 billion and a $4.7 billion valuation allowance as of December 31, 2023 and 2022, respectively, on deferred tax assets relating to those assets for which we are not more likely than not to realize due to the inability to generate sufficient taxable income in the period prior to expiration and/or of the character necessary to use the benefit of the deferred tax assets. During the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor), we recognized a deferred tax benefit of $802.9 million, a deferred tax expense of $1.5 million and a deferred tax benefit of $9.8 million, respectively, associated with changes in deferred tax asset valuation allowances. The deferred tax benefit in 2023 primarily relates to a $799.5 million reduction of our valuation allowance recognized in the fourth quarter of 2023 due changes in the balance of relevant positive and negative evidence considered when assessing the realization of our deferred tax assets in certain operating jurisdictions. After considering the balance of evidence, which included historical financial results, projected earnings, contract backlog, day rates and market outlook, we determined that sufficient positive evidence exists to conclude that this portion of the valuation allowance on deferred tax assets is no longer needed. This reduction in our valuation allowance was partially offset by a net increase of $275.0 million in 2023, primarily relating to deferred tax asset activity during the year attributable to NOLs and future deductible temporary differences for which we are not more than likely not to realize. We intend to continue maintaining a valuation allowance on a substantial portion of our deferred tax assets until there is sufficient evidence to support a reversal of such allowances. The timing and amount of future valuation allowance reductions are subject to future levels of contracting and profitability achieved. Effective Tax Rate 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. 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. Our consolidated effective income tax rate for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively, differs from the Bermuda and U.K. statutory income tax rates as follows: Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Bermuda (Successor)/ U.K. (Predecessor) statutory income tax rate — % — % — % 19.0 % Non-Bermuda (Successor) taxes 74.0 22.8 376.0 — Valuation allowance (953.6) 0.6 (119.5) (1.8) Resolution of prior year items (49.9) (7.0) 216.2 (0.4) Switzerland Tax Reform — — (188.3) — Asset impairments — — — (3.2) Other — 2.8 — (14.0) Effective income tax rate (929.5) % 19.2 % 284.4 % (0.4) % Our 2023 consolidated effective income tax rate includes discrete tax benefit of $42.0 million primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. Our 2022 consolidated effective income tax rate includes $10.3 million associated with the impact of various discrete items, including $17.2 million income tax benefit associated with changes in liabilities for unrecognized tax benefits and resolution of other prior period tax matters, offset primarily by tax expense attributable to income associated with a contract termination. Our eight months ended December 31, 2021 (Successor) consolidated effective income tax rate includes $14.3 million associated with the impact of various discrete items, including $29.7 million income tax expense associated with changes in liabilities for unrecognized tax benefits and resolution of other prior period tax matters, offset by $15.4 million of tax benefit related to deferred taxes associated with Switzerland tax reform. Our four months ended April 30, 2021 (Predecessor) consolidated effective income tax rate included $2.2 million associated with the impact of various discrete items, including $21.5 million of income tax expense associated with changes in liabilities for unrecognized tax benefits and resolution of other prior period tax matters, offset by $19.3 million of tax benefit related to fresh start accounting adjustments. Excluding the impact of the aforementioned discrete tax items, our consolidated effective income rates for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) were (872.3)%, 73.6%, 213.9% and (12.9)%, respectively. The changes in our consolidated effective income tax rate excluding discrete tax items during the three-year period result primarily from changes in the relative components of our earnings from the various taxing jurisdictions in which our drilling rigs are operated and/or owned and differences in tax rates in such taxing jurisdictions. Unrecognized Tax Benefits Our tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. As of December 31, 2023, we had $201.4 million of unrecognized tax benefits, of which $171.7 million was included in Other liabilities on our Consolidated Balance Sheet, and $29.7 million, which is associated with tax positions taken in tax years with NOL carryforwards, was presented as a reduction of deferred tax assets. As of December 31, 2022, we had $217.6 million of unrecognized tax benefits, of which $187.2 million was included in Other liabilities on our Consolidated Balance Sheet, $30.2 million, which is associated with tax positions taken in tax years with NOL carryforwards, was presented as a reduction of deferred tax assets and $0.2 million was presented as a reduction of long-term income tax receivable. If recognized, $171.2 million of the $201.4 million unrecognized tax benefits as of December 31, 2023 would impact our consolidated effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) (in millions) were as follows: Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Balance, beginning of period $ 217.6 $ 235.1 $ 235.4 $ 237.7 Increase as a result of tax positions taken during prior years 88.6 3.0 34.6 2.9 Lapse of applicable statutes of limitations (73.6) (4.5) (20.2) (0.2) Settlements with taxing authorities (41.8) (16.5) (6.6) — Increases as a result of tax positions taken during the current year 13.4 11.2 6.9 12.6 Impact of foreign currency exchange rates 0.6 (9.7) (10.5) (17.6) Decreases as a result of tax positions taken during prior years (3.4) (1.0) (4.5) — Balance, end of period $ 201.4 $ 217.6 $ 235.1 $ 235.4 Accrued interest and penalties totaled $52.3 million and $87.8 million as of December 31, 2023 and 2022, respectively, and were included in Other liabilities on our Consolidated Balance Sheets. We recognized a net benefit of $35.4 million and $12.5 million, and net expense of $20.3 million and $13.5 million associated with interest and penalties during the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively. Interest and penalties are included in Current income tax expense in our Consolidated Statements of Operations. Three of our subsidiaries file or previously filed U.S. tax returns and the tax returns of one or more of these subsidiaries is under exam for years 2014 and subsequent years. None of these examinations are expected to have a significant impact on the Company's consolidated results of operations and cash flows. Tax years as early as 2005 remain subject to examination in the other major tax jurisdictions in which we operated. Statutes of limitations applicable to certain of our tax positions lapsed during the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), resulting in net income tax benefits, inclusive of interest and penalties, of $77.3 million, $4.5 million, $17.9 million and $0.2 million, respectively. Absent the commencement of examinations by tax authorities, statutes of limitations applicable to certain of our tax positions will lapse during 2024, but we do not expect these to have a material impact to our unrecognized tax benefits or effective income tax rate. Tax Assessments In December 2023, one of our Luxembourg subsidiaries received tax assessments for fiscal years 2019, 2020, 2021 and 2023 and a demand of payment from the Luxembourg tax authorities for an aggregate of approximately €115.0 million (approximately $127.0 million converted at current period-end exchange rates), including interest. In February 2024, we subsequently received notice from the Luxembourg tax authorities reducing the amount attributable to the 2023 payment demand by approximately €55.0 million resulting in a revised aggregate tax demand of approximately €60.0 million. We have recorded a liability for uncertain tax positions of approximately €60.0 million (approximately $66.0 million converted at current period-end exchange rates) in the fourth quarter of 2023 related to the assessments for the 2019-2021 tax years. We are vigorously contesting these assessments, including the validity and amount; however, the outcome of such challenges and related administrative proceedings and appeals cannot be predicted with certainty. An unfavorable outcome could result in a material impact on our financial position, operating results and cash flows. During 2019, the Australian tax authorities issued aggregate tax assessments totaling approximately A$101.0 million (approximately $69.0 million converted at the current period-end exchange rate) plus interest related to the examination of certain of our tax returns for the years 2011 through 2016. During the third quarter of 2019, we made a A$42.0 million payment (approximately $29.0 million at then-current exchange rates) to the Australian tax authorities to litigate the assessment. We have an $18.8 million liability for uncertain tax positions relating to these assessments as of December 31, 2023. We believe our tax returns are materially correct as filed, and we are vigorously contesting these assessments. Although the outcome of such assessments and related administrative proceedings cannot be predicted with certainty, we do not expect these matters to have a material adverse effect on our financial position, operating results and cash flows. Undistributed Earnings Dividend income received by Valaris Limited from its subsidiaries is exempt from Bermuda taxation. We do not provide deferred taxes on undistributed earnings of certain subsidiaries because our policy and intention is to reinvest such earnings indefinitely. As of December 31, 2023, the aggregate undistributed earnings of the subsidiaries for which we maintain a policy and intention to reinvest earnings indefinitely totaled $298.2 million. Should we make a distribution from these subsidiaries in the form of dividends or otherwise, we would be subject to additional income taxes. The unrecognized deferred tax liability related to these undistributed earnings was not practicable to estimate as of December 31, 2023. Tax Legislation The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% applied on a country-by-country basis intended to be effective on January 1, 2024. Numerous jurisdictions are actively considering changes to existing tax laws or have proposed or enacted new laws to align with the recommendations and guidelines under Pillar Two. There remains uncertainty as to the final Pillar Two model rules and we will continue to monitor global legislative action related to this initiative. Additionally, Bermuda recently enacted the Corporate Income Tax Act 2023 on December 27, 2023 (the “CIT Act”) which stipulates a tax on 15% of the net income of certain Bermuda constituent entities (as determined in accordance with the CIT Act, including after adjusting for any relevant foreign tax credits applicable to the Bermuda constituent entities). No tax is chargeable under the CIT Act until tax years starting on or after January 1, 2025. While we are still closely monitoring developments of these rules and evaluating the potential impact on future periods, we do not expect they will have a significant impact on our financial results in the near term. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES 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. The Shareholder Agreement specifies that ARO shall 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 on hand and from ARO's operations and/or funds available from third-party financing. In January 2020, ARO paid 25% of the purchase price from cash on hand for each of the two newbuilds, and in October 2023, entered into a $359.0 million term loan to finance the remaining payments due upon delivery and for general corporate purposes. The term loan matures in eight years following the related drawdown under the term loan and requires equal quarterly amortization payments during the term, with a 50% balloon payment due at maturity. The term loan bears interest based on the three-month SOFR plus a margin ranging from 1.25% to 1.4%. Our Notes Receivable from ARO are subordinated and junior in right of payment to ARO’s term loan. In the event ARO has insufficient cash 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. Beginning with the delivery of the second newbuild, each partner's commitment shall be reduced by the lesser of the actual cost of each newbuild rig or $250.0 million, 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 December 31, 2023 totaled $128.8 million and are issued under facilities provided by various banks and other financial institutions, but none were issued under the Credit Agreement. Obligations under these letters of credit are not normally called, as we typically comply with the underlying performance requirements. As of December 31, 2023, we had collateral deposits in the amount of $12.6 million with respect to these agreements. Patent Litigation In December 2022, a subsidiary of Transocean Ltd. commenced an arbitration proceeding against us alleging breach of a license agreement related to certain dual-activity drilling patents. We are unable to estimate our potential exposure, if any, to the proceeding at this time but do not believe that our ultimate liability, if any, resulting from this proceeding will have a material effect on our consolidated financial condition, results of operations or cash flows. We do not believe that we have breached the license agreement and intend to defend ourselves vigorously against this claim. Brazil Administrative Proceeding In July 2023, we received notice of an administrative proceeding initiated against us in Brazil. Specifically, the Federal Court of Accounts ("TCU") is seeking from us, Samsung Heavy Industries (“SHI”) and others, on a joint and several basis, a total of approximately BRL 601.0 million (approximately $124.0 million at the current quarter-end exchange rates) in damages that TCU asserts arose from the overbilling to Petrobras in 2015 in relation to the drilling services agreement with Petrobras for VALARIS DS-5 (the “DSA”). As fully disclosed in our prior periodic reports, the DSA was previously the subject of (1) investigations by the SEC and the U.S Department of Justice, each of which closed their investigation of us in 2018 without any enforcement action, (2) an arbitration proceeding against SHI in which we prevailed resulting in SHI making a $200.0 million cash payment to us in December 2019, and (3) a settlement with Petrobras normalizing our business relations in August 2018. We plan to vigorously defend ourselves against the allegations made by the TCU. Because these proceedings are in their initial stages, we are unable to estimate our potential exposure, if any, at this time. 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. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES We have operating leases for office space, facilities, equipment, employee housing and certain rig berthing facilities. For all asset classes, except office space, we account for the lease component and the non-lease component as a single lease component. Short-term leases with a term of one year or less are not recorded on the Consolidated Balance Sheet. Our leases have remaining lease terms of less than one month to eight years, some of which include options to extend. The lease term used for calculating our right-of-use assets and lease liabilities is determined by considering the non-cancelable lease term, as well as any extension options that we are reasonably certain to exercise. We evaluate the carrying value of our right-of-use assets on a periodic basis to identify events or changes in circumstances, such as lease abandonment, which indicate that the carrying value of such right-of-use assets may be impaired. The components of lease expense are as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Long-term operating lease cost $ 24.6 $ 13.4 $ 12.9 $ 9.1 Short-term operating lease cost 13.2 15.2 14.3 6.3 Variable lease cost (1) 11.3 1.0 1.0 0.7 Total operating lease cost $ 49.1 $ 29.6 $ 28.2 $ 16.1 (1) Variable lease costs are excluded from the measurement of right-of-use assets and lease liabilities and consist primarily of variable fees related to offshore equipment rentals. Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): December 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 74.6 $ 21.0 Current lease liability $ 27.2 $ 9.4 Long-term lease liability 48.9 13.8 Total operating lease liabilities $ 76.1 $ 23.2 Weighted-average remaining lease term (in years) 3.6 5.0 Weighted-average discount rate (1) 8.21 % 7.48 % (1) Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases. Supplemental cash flow information related to our operating leases is as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 ROU assets obtained in exchange for operating lease liabilities $ 80.3 $ 14.7 $ 0.9 $ 5.5 Cash paid for amounts included in the measurement of our operating lease liabilities $ 26.2 $ 14.0 $ 11.7 $ 7.1 Maturities of lease liabilities as of December 31, 2023 were as follows (in millions): 2024 $ 32.4 2025 20.5 2026 19.1 2027 10.0 2028 2.4 Thereafter 3.7 Total lease payments $ 88.1 Less imputed interest (12.0) Total $ 76.1 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
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. Our onshore support costs included within Contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, those costs are included in “Reconciling Items.” 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 5 - Equity Method Investment in ARO" for additional information on ARO and related arrangements. Segment information for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) are presented below (in millions). Year Ended December 31, 2023 (Successor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 948.7 $ 659.6 $ 496.6 $ 175.9 $ (496.6) $ 1,784.2 Operating expenses Contract drilling (exclusive of depreciation) 812.0 517.4 365.9 75.2 (226.9) 1,543.6 Depreciation 55.8 40.0 65.9 5.0 (65.6) 101.1 General and administrative — — 22.2 — 77.1 99.3 Equity in earnings of ARO — — — — 13.3 13.3 Operating income $ 80.9 $ 102.2 $ 42.6 $ 95.7 $ (267.9) $ 53.5 Property and equipment, net $ 1,035.5 $ 480.8 $ 1,036.6 $ 52.1 $ (971.2) $ 1,633.8 Capital expenditures $ 562.0 $ 132.3 $ 300.8 $ — $ (299.0) $ 696.1 Year Ended December 31, 2022 (Successor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 700.5 $ 744.2 $ 459.5 $ 157.8 $ (459.5) $ 1,602.5 Operating expenses Contract drilling (exclusive of depreciation) 646.0 538.9 341.8 76.4 (219.9) 1,383.2 Loss on impairment 34.5 — — — — 34.5 Depreciation 50.0 36.1 63.4 4.6 (62.9) 91.2 General and administrative — — 18.7 — 62.2 80.9 Equity in earnings of ARO — — — — 24.5 24.5 Operating income (loss) $ (30.0) $ 169.2 $ 35.6 $ 76.8 $ (214.4) $ 37.2 Property and equipment, net $ 487.5 $ 391.7 $ 775.6 $ 56.8 $ (734.4) $ 977.2 Capital expenditures $ 152.9 $ 53.5 $ 103.7 $ — $ (103.1) $ 207.0 Eight Months Ended December 31, 2021 (Successor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 254.5 $ 487.1 $ 307.1 $ 93.4 $ (307.1) $ 835.0 Operating expenses Contract drilling (exclusive of depreciation) 250.7 365.2 246.2 38.9 (176.9) 724.1 Depreciation 31.0 32.0 44.2 2.8 (43.9) 66.1 General and administrative — — 13.6 — 44.6 58.2 Equity in earnings of ARO — — — — 6.1 6.1 Operating income (loss) $ (27.2) $ 89.9 $ 3.1 $ 51.7 $ (124.8) $ (7.3) Property and equipment, net $ 408.2 $ 401.9 $ 730.6 $ 46.0 $ (695.8) $ 890.9 Capital expenditures $ 26.0 $ 23.7 $ 41.8 $ — $ (41.3) $ 50.2 Four Months Ended April 30, 2021 (Predecessor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 115.7 $ 232.4 $ 163.5 $ 49.3 $ (163.5) $ 397.4 Operating expenses Contract drilling (exclusive of depreciation) 106.5 175.0 116.1 19.9 (73.7) 343.8 Loss on impairment 756.5 — — — — 756.5 Depreciation 72.1 69.7 21.0 14.8 (18.0) 159.6 General and administrative — — 4.2 — 26.5 30.7 Equity in earnings of ARO — — — — 3.1 3.1 Operating income (loss) $ (819.4) $ (12.3) $ 22.2 $ 14.6 $ (95.2) $ (890.1) Property and equipment, net $ 419.3 $ 401.4 $ 730.7 $ 50.5 $ (692.8) $ 909.1 Capital expenditures $ 3.3 $ 5.4 $ 14.9 $ — $ (14.9) $ 8.7 Information about Geographic Areas As of December 31, 2023, our Floaters segment consisted of 13 drillships, four dynamically positioned semisubmersible rigs and one moored semisubmersible rig deployed in various locations. Our Jackups segment consisted of 27 jackup rigs which were deployed in various locations and our Other segment consisted of eight jackup rigs which are leased to our 50/50 unconsolidated joint venture with Saudi Aramco. As of December 31, 2023, the geographic distribution of our and ARO's drilling rigs was as follows: Floaters Jackups Other Total Valaris ARO Middle East & Africa 3 5 8 16 8 North & South America 9 7 — 16 — Europe 4 12 — 16 — Asia & Pacific Rim 2 3 — 5 — Total 18 27 8 53 8 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. ARO has ordered one newbuild jackup which is under construction in the Middle East and expected to be delivered in first half of 2024. This rig is not included in the table above. Information by country for those countries that account for more than 10% of our long-lived assets, was as follows (in millions): Long-lived Assets December 31, 2023 December 31, 2022 Spain $ 438.9 $ 117.7 Brazil 374.5 102.0 United Kingdom 277.8 185.2 United States 206.5 166.3 Other countries (1) 410.7 427.0 Total $ 1,708.4 $ 998.2 (1) Other countries includes countries where individually we had long-lived assets representing less than 10% of total long-lived assets. For purposes of our geographic disclosures above, we attribute assets to the geographic location of the drilling rig or operating lease, in the case of our right-of-use assets, as of the end of the applicable year. Any rigs in transit as of the end of the year are included in the location to which they are mobilizing. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | SUPPLEMENTAL FINANCIAL INFORMATION Consolidated Balance Sheet Information Accounts receivable, net, consisted of the following (in millions): December 31, 2023 December 31, 2022 Trade $ 375.2 $ 345.7 Income tax receivables 83.2 93.6 Other 16.2 24.6 474.6 463.9 Allowance for doubtful accounts (15.3) (14.8) $ 459.3 $ 449.1 Other current assets consisted of the following (in millions): December 31, 2023 December 31, 2022 Deferred costs $ 75.3 $ 59.1 Prepaid taxes 49.1 44.6 Prepaid expenses 23.6 17.5 Other 29.2 27.4 $ 177.2 $ 148.6 Accrued liabilities and other consisted of the following (in millions): December 31, 2023 December 31, 2022 Current contract liabilities (deferred revenues) $ 116.2 $ 78.0 Personnel costs 76.6 55.8 Income and other taxes payable 52.9 41.4 Lease liabilities 27.2 9.4 Accrued claims 20.4 27.2 Accrued interest 15.4 7.6 Other 35.5 28.5 $ 344.2 $ 247.9 Other liabilities consisted of the following (in millions): December 31, 2023 December 31, 2022 Unrecognized tax benefits (inclusive of interest and penalties) $ 224.0 $ 275.0 Pension and other post-retirement benefits 141.6 159.8 Lease liabilities 48.9 13.8 Noncurrent contract liabilities (deferred revenues) 37.6 41.0 Other 19.6 9.9 $ 471.7 $ 499.5 Consolidated Statements of Operations Information Repair and maintenance expense related to continuing operations was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Repair and maintenance expense $ 203.3 $ 175.2 $ 76.3 $ 48.4 Other, net, consisted of the following (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Loss on extinguishment of debt $ (29.2) $ — $ — $ — Net gain on sale of property 28.6 141.2 21.2 6.0 Net foreign currency exchange gains (losses) (3.5) 12.2 8.1 13.4 Net periodic pension and retiree medical income 0.9 16.4 8.7 5.4 Other income 1.4 0.1 0.1 1.1 $ (1.8) $ 169.9 $ 38.1 $ 25.9 Consolidated Statements of Cash Flows Information Our restricted cash consists primarily of $12.6 million and $24.4 million of collateral on letters of credit as of December 31, 2023 and 2022, respectively. See " Note 1 3 - Commitments and Contingencies" for more information regarding our letters of credit. Net cash used in operating activities attributable to the net change in operating assets and liabilities was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 (Increase) decrease in accounts receivable $ 44.9 $ (6.9) $ (18.3) $ 23.2 (Increase) decrease in other assets (5.9) 0.5 9.0 15.7 Increase (decrease) in liabilities 82.8 (0.2) 29.3 38.2 $ 121.8 $ (6.6) $ 20.0 $ 77.1 Additional cash flow information was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Cash paid for interest and taxes Interest paid, net of amounts capitalized $ 32.3 $ 44.2 $ 22.8 $ — Income taxes paid (refunded), net $ (8.3) $ 5.6 $ 23.5 $ (16.9) Non-cash investing activities Accruals for capital expenditures as of period end (1) $ 71.5 $ 22.1 $ 9.3 $ 6.5 (1) Accruals for capital expenditures were excluded from investing activities in our Consolidated Statements of Cash Flows. We received an income tax refund of $45.9 million during the first quarter of 2023 related to the U.S. Coronavirus Aid, Relief, and Economic Security Act. Capitalized interest totaled $5.6 million and $1.2 million during the year ended December 31, 2023 and 2022 (Successor), respectively. During the eight months ended December 31, 2021 (Successor) and during the four months ended April 30, 2021 (Predecessor), there was no capitalized interest. Concentration of Risk Credit Risk - We are exposed to credit risk relating to our cash and cash equivalents and receivables from customers. Our cash and cash equivalents are primarily held by various well-capitalized and credit-worthy financial institutions. We monitor the credit ratings of these institutions and limit the amount of exposure to any one institution and therefore, do not believe a significant credit risk exists for these balances. 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. Customer Concentration - Consolidated revenues with customers that individually contributed 10% or more of revenue in the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) were as follows: Successor Year Ended December 31, 2023 Year Ended December 31, 2022 Floaters Jackups Other Total Floaters Jackups Other Total BP plc ("BP") — % 5 % 6 % 11 % 6 % 3 % 6 % 15 % Other customers 53 % 32 % 4 % 89 % 38 % 43 % 4 % 85 % 53 % 37 % 10 % 100 % 44 % 46 % 10 % 100 % Successor Predecessor Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Floaters Jackups Other Total Floaters Jackups Other Total BP 2 % 2 % 7 % 11 % 5 % 2 % 7 % 14 % Other customers 29 % 56 % 4 % 89 % 24 % 57 % 5 % 86 % 31 % 58 % 11 % 100 % 29 % 59 % 12 % 100 % Geographic Concentration - 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 were as follows (in millions): Successor Year Ended December 31, 2023 Year Ended December 31, 2022 Floaters Jackups Other Total Floaters Jackups Other Total U.S. Gulf of Mexico $ 220.9 $ 27.2 $ 104.7 $ 352.8 $ 230.9 $ 21.3 $ 99.0 $ 351.2 United Kingdom — 267.2 — 267.2 — 264.5 — 264.5 Angola 210.9 — — 210.9 78.5 — — 78.5 Brazil 195.0 — — 195.0 111.5 — — 111.5 Australia 157.0 29.9 — 186.9 113.0 30.0 — 143.0 Saudi Arabia — 41.2 71.2 112.4 — 78.3 58.8 137.1 Mexico 65.9 38.7 — 104.6 13.9 58.1 — 72.0 Norway — 2.4 — 2.4 — 114.6 — 114.6 Other countries 99.0 253.0 — 352.0 152.7 177.4 — 330.1 $ 948.7 $ 659.6 $ 175.9 $ 1,784.2 $ 700.5 $ 744.2 $ 157.8 $ 1,602.5 Successor Predecessor Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Floaters Jackups Other Total Floaters Jackups Other Total U.S. Gulf of Mexico $ 52.8 $ 0.7 $ 56.4 $ 109.9 $ 47.9 $ 0.2 $ 26.3 $ 74.4 United Kingdom — 185.2 — 185.2 — 75.7 — 75.7 Angola 19.4 — — 19.4 20.5 — — 20.5 Brazil 38.6 — — 38.6 — — — — Australia 46.2 29.3 — 75.5 0.8 0.2 — 1.0 Saudi Arabia — 55.3 37.0 92.3 — 30.5 23.0 53.5 Mexico 37.0 40.8 — 77.8 21.6 22.7 — 44.3 Norway — 123.9 — 123.9 — 73.3 — 73.3 Other countries 60.5 51.9 — 112.4 24.9 29.8 — 54.7 $ 254.5 $ 487.1 $ 93.4 $ 835.0 $ 115.7 $ 232.4 $ 49.3 $ 397.4 (1) Other countries includes locations that individually contributed to less than 10% of total revenues. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ (4,467) | $ (27.4) | $ 865.4 | $ 176.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description Of The Business A_2
Description Of The Business And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Business We are a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. We own the world's largest offshore drilling rig fleet, including one of the newest ultra-deepwater fleets in the industry and a leading premium jackup fleet. We currently own 53 rigs, including 13 drillships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, 35 jackup rigs and a 50% equity interest in Saudi Aramco Rowan Offshore Drilling Company ("ARO"), our 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional eight rigs. Our customers include many of the leading international and government-owned oil and gas companies, in addition to many independent operators. We are among the most geographically diverse offshore drilling companies with global operations. The markets in which we operate include the Gulf of Mexico, South America, the North Sea, the Middle East, Africa and Asia Pacific. We provide 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. |
Chapter 11 Cases and Restructuring Support Agreement | Chapter 11 Cases On August 19, 2020 (the “Petition Date”), Valaris plc (“Legacy Valaris” or “Predecessor”) and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code ("Bankruptcy Code") in the Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court") The Debtors obtained joint administration of their chapter 11 cases under the caption In re Valaris plc, et al., Case No. 20-34114 (MI) (the “Chapter 11 Cases”). In connection with the Chapter 11 Cases, on and prior to April 30, 2021 (the "Effective Date"), Legacy Valaris effectuated certain restructuring transactions, pursuant to which the successor company, Valaris, was formed and, through a series of transactions, Legacy Valaris transferred to a subsidiary of Valaris substantially all of the subsidiaries, and other assets, of Legacy Valaris. References to the financial position and results of operations of the "Successor" or "Successor Company" relate to the financial position and results of operations of the Company after the Effective Date. References to the financial position and results of operations of the "Predecessor" or "Predecessor Company" refer to the financial position and results of operations of Legacy Valaris on and prior to the Effective Date. References to the “Company,” “we,” “us” or “our” in this Annual 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 Effective Date. See “ Note 2 – Chapter 11 Proceedings” for additional details regarding the Chapter 11 Cases. |
Bankruptcy and Fresh Start Accounting Policy | Fresh Start Accounting On the Effective Date, the Debtors emerged from the Chapter 11 Cases. Upon emergence from the Chapter 11 Cases, we qualified for and adopted fresh start accounting. The application of fresh start accounting resulted in a new basis of accounting, and the Company 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. Furthermore, the consolidated financial statements and notes have been presented with a black line division to delineate the lack of comparability between the Predecessor and Successor. See “ Note 2 – Chapter 11 Proceedings” and “ Note 3 - Fresh Start Accounting” for additional details regarding the Chapter 11 Cases and fresh start accounting. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Valaris Limited, those of our wholly-owned subsidiaries and entities in which we hold a controlling financial interest. All intercompany accounts and transactions have been eliminated. Investments in operating entities in which we have the ability to exercise significant influence, but where we do not control operating and financial policies are accounted for using the equity method. Significant influence generally exists if we have an ownership interest representing between 20% and 50% of the voting stock of the investee. We account for our interest in ARO using the equity method of accounting and only recognize our portion of equity in earnings in our consolidated financial statements. ARO is a variable interest entity; however, we are not the primary beneficiary and therefore do not consolidate ARO. Reclassification Certain previously reported amounts have been reclassified to conform to the current year presentation. |
Pervasiveness Of Estimates | Pervasiveness of Estimates The preparation of financial statements in conformity with GAAP 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. |
Foreign Currency Remeasurement And Translation | Foreign Currency Remeasurement and Translation |
Cash Equivalents And Short-Term Investments | Cash Equivalents and Short-Term Investments Highly liquid investments with maturities of three months or less at the date of purchase are considered cash equivalents. Highly liquid investments with maturities of greater than three months but less than one year at the date of purchase are classified as short-term investments. There were no short-term investments as of December 31, 2023 and 2022. Cash flows from purchases and maturities of short-term investments were classified as investing activities in our Consolidated Statements of Cash Flows for the year ended December 31, 2022. To mitigate our credit risk, our investments in time deposits have historically been diversified across multiple, high-quality financial institutions. |
Property And Equipment | Property and Equipment All costs incurred in connection with the acquisition, construction, major enhancement and improvement of assets are capitalized, including allocations of interest incurred during periods that our drilling rigs are under construction or undergoing major enhancements and improvements. Costs incurred to place an asset into service are capitalized, including costs related to the initial mobilization of a newbuild drilling rig. Repair and maintenance costs are charged to contract drilling expense in the period in which they are incurred. Upon the sale or retirement of assets, the related cost and accumulated depreciation are removed from the balance sheet, and the resulting gain or loss is included in Other, net in our Consolidated Statements of Operations. Upon emergence, we elected to change our accounting policies and have identified the significant components of our drilling rigs and ascribed useful lives based on the expected time until the next required overhaul or the end of the expected economic lives of the components. Our property and equipment is depreciated on a straight-line basis, after allowing for salvage values, over the estimated useful lives of our assets. Drilling rigs and related equipment are depreciated over estimated useful lives ranging from five two We evaluate the carrying value of our property and equipment, primarily our drilling rigs, on a quarterly basis to identify events or changes in circumstances ("triggering events") that indicate that the carrying value of such rigs may not be recoverable. For property and equipment used in our operations, recoverability generally is determined by comparing the carrying value of an asset to the expected undiscounted future cash flows of the asset. If the carrying value of an asset is not recoverable, the amount of impairment loss is measured as the difference between the carrying value of the asset and its estimated fair value. Property and equipment held-for-sale is recorded at the lower of net book value or fair value less cost to sell. We recorded pre-tax, non-cash impairment losses related to long-lived assets of $34.5 million and $756.5 million, in the year ended December 31, 2022 (Successor) and the four months ended April 30, 2021 (Predecessor), respectively. See " Note 7 - Property and Equipment" for additional information on our impairment charges. |
Operating Revenues And Expenses | Operating Revenues and Expenses See " Note 4 - Revenue from Contracts with Customers" for information on our accounting policies for revenue recognition and certain operating costs that are deferred and amortized over future periods. |
Income Taxes | Income Taxes We conduct operations and earn income in numerous countries. Current income taxes are recognized for the amount of taxes payable or refundable based on the laws and income tax rates in the taxing jurisdictions in which operations are conducted and income is earned. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of our assets and liabilities using the enacted tax rates in effect at year-end. A valuation allowance for deferred tax assets is recorded when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized. We do not offset deferred tax assets and deferred tax liabilities attributable to different tax paying jurisdictions. We operate in certain jurisdictions where tax laws relating to the offshore drilling industry are not well developed and change frequently. Furthermore, we may enter into transactions with affiliates or employ other tax planning strategies that generally are subject to complex tax regulations. As a result of the foregoing, the tax liabilities and assets we recognize in our financial statements may differ from the tax positions taken, or expected to be taken, in our tax returns. Our tax positions are evaluated for recognition as unrecognized tax benefits using a more-likely-than-not threshold, and those requiring recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties relating to income taxes are included in Current income tax expense in our Consolidated Statements of Operations. Our drilling rigs frequently move from one taxing jurisdiction to another based on where they are contracted to perform drilling services. The movement of drilling rigs among taxing jurisdictions may involve a transfer of drilling rig ownership among our subsidiaries through an intercompany rig sale. The pre-tax profit resulting from an intercompany rig sale is eliminated from our consolidated financial statements, and the carrying value of a rig sold in an intercompany transaction remains at historical net depreciated cost prior to the transaction. Our consolidated financial statements do not reflect the asset disposition transaction of the selling subsidiary or the asset acquisition transaction of the acquiring subsidiary. The income tax effects resulting from intercompany rig sales are recognized in earnings in the period in which the sale occurs. In some instances, we may determine that certain temporary differences will not result in a taxable or deductible amount in future years, as it is more-likely-than-not we will commence operations and depart from a given taxing jurisdiction without such temporary differences being recovered or settled. Under these circumstances, no future tax consequences are expected and no deferred taxes are recognized in connection with such operations. We evaluate these determinations on a periodic basis and, in the event our expectations relative to future tax consequences change, the applicable deferred taxes are recognized or derecognized. |
Share-Based Compensation | Share-Based Compensation We sponsor share-based compensation plans that provide equity compensation to our key employees, officers and non-employee directors. Our 2021 Management Incentive Plan (the “MIP”) allows our board of directors to authorize equity-based grants to be settled in cash, shares or a combination of shares and cash. Compensation expense for time-based equity awards to be settled in shares is measured at fair value on the date of grant and recognized on a straight-line basis over the requisite service period (usually the vesting period). Compensation expense for performance awards is recognized over the requisite service period using the accelerated method and is reduced for forfeited awards in the period in which the forfeitures occur. For our performance awards that cliff vest and require the employee to render service through the vesting date, even though attainment of performance objectives might be earlier, our expense under the accelerated method would be a ratable expense over the vesting period. Equity settled performance awards generally vest at the end of a three-year measurement period based on attainment of performance goals. The estimated probable outcome of attainment of the specified performance goals is based primarily on relative performance over the requisite performance period. Any subsequent changes in this estimate as it relates to performance objectives are recognized as a cumulative adjustment to compensation cost in the period in which the change in estimate occurs, except in the case of objectives based on a market condition, such as our stock price. Compensation cost for awards based on a market performance objective is recognized as long as the requisite service period is completed and will not be reversed even if the market-based objective is never satisfied. Any adjustments to the compensation cost recognized in our Consolidated Statements of Operations for awards that are forfeited are recognized in the period in which the forfeitures occur. See " Note 10 - Share Based Compensation" for additional information on our share-based compensation. |
Pension and Other Postretirement Benefit Plans | Pension and Other Post-retirement Benefit Plans We measure our actuarially determined obligations and related costs for our defined benefit pension and other post-retirement plans, retiree life and medical supplemental plan benefits by applying assumptions, the most significant of which include long-term rate of return on plan assets, discount rates and mortality rates. For the long-term rate of return, we develop our assumptions regarding the expected rate of return on plan assets based on historical experience and projected long-term investment returns, and we weight the assumptions based on each plan's asset allocation. For the discount rate, we base our assumptions on a yield curve approach. Actual results may differ from the assumptions included in these calculations. If gains or losses exceed 10% of the greater of the plan assets or plan liabilities, we amortize such gains or losses into income over either the period of expected future service of active participants, or over the expected average remaining lifetime of all participants. We recognize gains or losses related to plan curtailments at the date the plan amendment or termination is adopted which may precede the effective date. |
Fair Value Measurements | Fair Value Measurements We measure certain of our assets and liabilities based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3"). Level 2 measurements represent inputs that are observable for similar assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. See " Note 6 - Fair Value Measurements" for additional information on the fair value measurement of certain of our assets and liabilities. |
Noncontrolling Interest | Noncontrolling Interests Third parties hold a noncontrolling ownership interest in certain of our non-U.S. subsidiaries. Noncontrolling interests are classified as equity on our Consolidated Balance Sheet, and net income attributable to noncontrolling interests is presented separately in our Consolidated Statements of Operations. All income attributable to noncontrolling interest was from continuing operations. |
Cancellation of Predecessor Equity and Issuance of Warrants | Cancellation of Predecessor Equity and Issuance of Warrants |
Earnings Per Share | Earnings Per Share Basic earnings (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. 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 stock equivalents, including warrants, restricted stock unit awards and performance stock unit awards and for the Predecessor included the effect of all potentially dilutive stock options and excluded non-vested shares. The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Income (loss) attributable to our shares $ 865.4 $ 176.5 $ (27.4) $ (4,467.0) Weighted average shares outstanding: Basic 74.1 75.1 75.0 199.6 Effect of stock equivalents 1.1 0.5 — — Diluted 75.2 75.6 75.0 199.6 Anti-dilutive share awards totaling 147,000 and 192,000 were excluded from the computation of diluted EPS for the year ended December 31, 2023 and 2022 (Successor), respectively. Due to the net loss position, anti-dilutive shares totaling 600,000 and 300,000, for the eight months ended December 31, 2021 (Successor) and the four months ended April 30, 2021 (Predecessor), respectively, were excluded from the computation of diluted EPS. We have 5,470,950 Warrants outstanding as of December 31, 2023 which are exercisable for one Common Share per Warrant at an initial exercise price of $131.88 per Warrant. 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 all periods presented for the Successor. The Predecessor previously had convertible senior notes due 2024 (the "2024 Convertible Notes") for which we had the option to settle in cash, shares or a combination thereof for the aggregate amount due upon conversion. On the Effective Date, pursuant to the plan of reorganization, all outstanding obligations under the 2024 Convertible Notes were cancelled and the holders thereunder received the treatment as set forth in the plan of reorganization. However, if the Legacy Valaris average share price had exceeded the exchange price during a respective predecessor reporting period, an assumed number of shares required to settle the conversion obligation in excess of the principal amount would have been included in our denominator for the computation of diluted EPS using the treasury stock method. The Legacy Valaris average share price did not exceed the exchange price during the four months ended April 30, 2021 (Predecessor). |
New Accounting Pronouncements | New Accounting Pronouncements Recently adopted accounting pronouncements Business Combinations - In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract 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 adopted Update 2021-08 effective January 1, 2023 with no material impact to our financial statements upon adoption. 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 U.S. 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 provisions in Update 2020-04 were effective upon issuance and could be applied prospectively to contract modifications made through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, to extend the temporary accounting rules under Topic 848 from December 31, 2022, to December 31, 2024. Our long-term notes receivable from ARO (the "Notes Receivable from ARO"), has generated interest income on a LIBOR-based rate since inception of the note. In 2023, we amended the terms of the Notes Receivable from ARO whereby beginning in 2024, interest income is calculated on a Secured Overnight Financing Rate ("SOFR") based rate. The application of Update 2020-04 and ASU No. 2022-06 on this contract modification and the change in reference rates did not have a material impact on our consolidated financial statements. Accounting pronouncements to be adopted Improvements to Reportable Segment Disclosures - In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("Update 2023-07"), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in Update 2023-07 require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for fiscal years beginning after December 15, 2023 and interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("Update 2023-09"), which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in Update 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes. Update 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied on a prospective basis, with an option to apply the guidance retrospectively. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures. |
Description Of The Business A_3
Description Of The Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Reconciliation Of Net Income Attributable To Valaris Shares Used In Basic And Diluted EPS Computations | The following table is a reconciliation of the weighted-average shares used in our basic and diluted EPS computations for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Income (loss) attributable to our shares $ 865.4 $ 176.5 $ (27.4) $ (4,467.0) Weighted average shares outstanding: Basic 74.1 75.1 75.0 199.6 Effect of stock equivalents 1.1 0.5 — — Diluted 75.2 75.6 75.0 199.6 |
Chapter 11 Proceedings and Ab_2
Chapter 11 Proceedings and Ability to Continue as a Going Concern (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reorganizations [Abstract] | |
Schedule Of Reorganization Items In Consolidated Statement of Operations And Cash Flow | Successor Predecessor Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Professional fees $ 2.4 $ 17.2 $ 93.4 Contract items — (1.7) 3.9 Reorganization items (fees) 2.4 15.5 97.3 Contract items — — 0.5 Backstop premium — — 30.0 Gain on settlement of liabilities subject to compromise — — (6,139.0) Issuance of Common Shares for — — 29.1 Issuance of Common Shares to the Shipyard — — 5.4 Write-off of unrecognized share-based compensation expense — — 16.0 Impact of newbuild contract amendments — — 350.7 Loss on fresh start adjustments — — 9,194.6 Reorganization items (non-cash) — — 3,487.3 Total reorganization items, net $ 2.4 $ 15.5 $ 3,584.6 Reorganization items (fees) paid $ 2.4 $ 14.7 $ 59.0 Reorganization items (fees) unpaid $ — $ 0.8 $ 38.3 |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reorganizations [Abstract] | |
Schedule of Reconciles Enterprise Value to Estimated Fair Value of Successors Equity | The following table reconciles the enterprise value to the estimated fair value of Successor Common Shares as of the Effective Date (in millions, except per share value): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Less: Fair value of debt (544.8) Less: Warrants (16.4) Less: Noncontrolling interest 1.1 Less: Pension and other post-retirement benefits liabilities (189.0) Less: Adjustments not contemplated in Enterprise Value (639.0) Fair value of Successor Common Shares $ 1,079.5 Shares issued upon emergence 75.0 Per share value $ 14.39 |
Schedule of Reconciles Enterprise Value to Reorganization Value of Successors Equity | The following table reconciles the enterprise value to the reorganization value as of the Effective Date (in millions): April 30, 2021 Enterprise Value $ 1,860.0 Plus: Cash and cash equivalents 607.6 Plus: Non-interest bearing current liabilities 346.0 Less: Adjustments not contemplated in Enterprise Value (218.0) Reorganization value of Successor assets $ 2,595.6 |
Schedule of Effects on Consolidated Balance Sheet due to Reorganization and Fresh Start Accounting Adjustments | As of April 30, 2021 Predecessor Reorganization Adjustments Fresh Start Accounting Adjustments Successor ASSETS CURRENT ASSETS Cash and cash equivalents $ 280.2 $ 327.4 (a) $ — $ 607.6 Restricted cash 45.7 42.7 (b) — 88.4 Accounts receivable, net 425.9 — — 425.9 Other current assets 370.1 1.5 (c) (281.1) (o) 90.5 Total current assets 1,121.9 371.6 (281.1) 1,212.4 PROPERTY AND EQUIPMENT, NET 10,026.4 (417.6) (d) (8,699.7) (p) 909.1 LONG-TERM NOTES RECEIVABLE FROM ARO 442.7 — (214.4) (q) 228.3 INVESTMENT IN ARO 123.9 — (43.4) (r) 80.5 OTHER ASSETS 166.4 (10.0) (e) 8.9 (s) 165.3 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 161.5 $ 13.1 (f) $ (0.5) (t) $ 174.1 Accrued liabilities and other 290.7 (12.4) (g) (61.8) (u) 216.5 Total current liabilities 452.2 0.7 (62.3) 390.6 LONG-TERM DEBT — 544.8 (h) — 544.8 OTHER LIABILITIES 706.2 (55.2) (i) (85.6) (v) 565.4 Total liabilities not subject to compromise 1,158.4 490.3 (147.9) 1,500.8 LIABILITIES SUBJECT TO COMPROMISE 7,313.7 (7,313.7) (j) — — COMMITMENTS AND CONTINGENCIES VALARIS SHAREHOLDERS' EQUITY Predecessor Class A ordinary shares 82.5 (82.5) (k) — — Predecessor Class B ordinary shares 0.1 (0.1) (k) — — Successor common shares — 0.8 (l) — 0.8 Successor stock warrants — 16.4 (m) — 16.4 Predecessor additional paid-in capital 8,644.0 (8,644.0) (k) — — Successor additional paid-in capital — 1,078.7 (l) — 1,078.7 Retained deficit (5,147.4) 14,322.6 (n) (9,175.2) (w) — Accumulated other comprehensive loss (93.4) — 93.4 (x) — Predecessor treasury shares (75.5) 75.5 (k) — — Total Valaris shareholders' equity 3,410.3 6,767.4 (9,081.8) 1,095.9 NONCONTROLLING INTERESTS (1.1) — — (1.1) Total equity 3,409.2 6,767.4 (9,081.8) 1,094.8 $ 11,881.3 $ (56.0) $ (9,229.7) $ 2,595.6 |
Schedule of Fresh Start Accounting | Cash Represents the reorganization adjustments (in millions): Receipt of cash for First Lien Notes $ 500.0 Loan proceeds from backstop lenders 20.0 Funds received for liquidation of rabbi trust related to certain employee benefits 17.6 Payments to Predecessor creditors (129.9) Transfer of funds for payment of certain professional fees to escrow account (42.7) Payment for certain professional services fees (29.0) Various other (8.6) $ 327.4 Represents the reorganization adjustments (in millions): Liquidation of rabbi trust related to certain employee benefits $ (17.6) Elimination of right-of-use asset associated with Newbuild Drillships (5.5) Fair value of options to purchase Newbuild Drillships 13.1 $ (10.0) Reflects the following reorganization adjustments (in millions): Professional fees incurred upon emergence $ 26.1 Payment of professional fees incurred prior to emergence (12.6) Payment of certain accounts payable incurred prior to emergence (0.4) $ 13.1 Reflects the following reorganization adjustments (in millions): Elimination of lease liabilities associated with Newbuild Drillships $ (5.0) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.1) Payment of certain accrued liabilities incurred prior to emergence (3.3) $ (12.4) Reflects the following reorganization adjustments (in millions): Elimination of construction contract intangible liabilities associated with Newbuild Drillships $ (49.9) Elimination of accrued post-petition holding costs associated with Newbuild Drillships (4.7) Elimination of lease liabilities associated with Newbuild Drillships (0.6) $ (55.2) Reflects the following reorganization adjustments (in millions): Settlement of liabilities subject to compromise $ 7,313.7 Issuance of common stock to Predecessor creditors (721.0) Issuance of common stock to backstop parties (323.8) Payments to Predecessor creditors (129.9) Gain on settlement of liabilities subject to compromise $ 6,139.0 Represents the reorganization adjustments to total equity as follows (in millions): Gain on settlement of liabilities subject to compromise $ (6,139.0) Issuance of Common Shares for backstop premium 29.1 Issuance of Common Shares to the Shipyard 5.4 Write-off of unrecognized share-based compensation expense 16.0 Professional fees and success fees 35.9 Backstop premium 30.0 Impact of newbuild contract amendments 350.7 Reorganization items, net (5,671.9) Cancellation of Predecessor common shares (82.6) Cancellation of Predecessor treasury shares 75.5 Cancellation of Predecessor additional paid in capital (7,856.4) Cancellation of equity component of Predecessor convertible notes (220.0) Cancellation of Predecessor cash and equity compensation plans (583.6) Fair value of Warrants 16.4 $ (14,322.6) Reflects the fresh start adjustments to record the estimated fair value of other current assets as follows (in millions): Elimination of materials and supplies $ (260.8) Elimination of historical deferred contract drilling expenses (20.3) $ (281.1) Reflects the fresh start adjustments to record the estimated fair value of other assets as follows (in millions): Deferred tax impacts of certain fresh start adjustments $ 21.1 Fair value of contracts with customers 8.5 Fair value adjustments to right-of-use assets 0.4 Elimination of historical deferred contract drilling expenses (16.5) Elimination of other deferred costs (4.6) $ 8.9 Reflects the fresh start adjustments to record the estimated fair value of current liabilities as follows (in millions): Elimination of customer payable balance $ (36.8) Elimination of historical deferred revenues (25.9) Fair value of contracts with customers 0.5 Fair value adjustment to lease liabilities 0.4 $ (61.8) Reflects the fresh start adjustments to record the estimated fair value of other liabilities as follows (in millions): Adjustment to fair value of pension and other post-retirement plan liabilities $ (82.7) Elimination of historical deferred revenue (5.9) Deferred tax impacts of certain fresh start adjustments 1.7 Fair value adjustments to lease liabilities 1.1 Fair value adjustments to other liabilities 0.2 $ (85.6) Reflects the fresh start adjustments to retained deficit as follows (in millions): Fair value adjustments to prepaid and other current assets $ (281.1) Fair value adjustments to property (8,699.7) Fair value of intangible assets 8.5 Fair value adjustment to investment in ARO (43.4) Fair value adjustment to note receivable from ARO (214.4) Fair value adjustments to other assets (20.7) Fair value adjustments to other current liability 62.8 Fair value of intangible liabilities (0.5) Fair value adjustment to other liabilities 87.3 Elimination of Predecessor accumulated other comprehensive loss (93.4) Total fresh start adjustments included in reorganization items, net $ (9,194.6) Tax impact of fresh start adjustments 19.4 $ (9,175.2) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes our contract assets and contract liabilities (in millions): December 31, 2023 December 31, 2022 Current contract assets $ 1.5 $ 4.6 Noncurrent contract assets $ 4.5 $ 0.7 Current contract liabilities (deferred revenue) $ 116.2 $ 78.0 Noncurrent contract liabilities (deferred revenue) $ 37.6 $ 41.0 Changes in contract assets and liabilities during the period are as follows (in millions): Contract Assets Contract Liabilities Balance as of December 31, 2021 $ 0.3 $ 56.6 Revenue recognized in advance of right to bill customer 9.2 — Increase due to revenue deferred during the period — 156.7 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (41.1) Decrease due to amortization of deferred revenue that was added during the period — (47.1) Decrease due to transfer to receivables and payables during the period (4.2) (6.1) Balance as of December 31, 2022 5.3 119.0 Revenue recognized in advance of right to bill customer 8.4 — Increase due to revenue deferred during the period — 162.9 Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance — (73.1) Decrease due to amortization of deferred revenue that was added during the period — (46.5) Decrease due to transfer to receivables and payables during the period (7.7) (8.5) Balance as of December 31, 2023 $ 6.0 $ 153.8 |
Expected Future Amortization of Contract Liabilities | The table below reflects the expected future amortization of our contract liabilities and deferred costs recorded as of December 31, 2023. In the case of our contract liabilities related to our bareboat charter arrangements with ARO, the contract liability is not amortized and as such, the amount is reflected in the table below at the end of the current lease term. (In millions) 2024 2025 2026 2027 & Thereafter Total Amortization of contract liabilities $ 116.2 $ 24.7 $ 12.1 $ 0.8 $ 153.8 Amortization of deferred costs $ 75.3 $ 15.9 $ 8.1 $ 0.3 $ 99.6 |
Equity Method Investment in A_2
Equity Method Investment in ARO (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Summarized financial information for ARO is as follows (in millions): Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Revenues $ 496.6 $ 459.5 $ 470.6 Operating expenses Contract drilling (exclusive of depreciation) 365.9 341.8 362.3 Depreciation 65.9 63.4 65.2 General and administrative 22.2 18.7 17.8 Operating income 42.6 35.6 25.3 Other expense, net 31.8 11.1 13.4 Provision for income taxes 8.3 3.8 7.9 Net income $ 2.5 $ 20.7 $ 4.0 December 31, 2023 December 31, 2022 Cash and cash equivalents $ 92.9 $ 176.2 Other current assets 184.0 140.6 Non-current assets 1,081.0 818.1 Total assets $ 1,357.9 $ 1,134.9 Current liabilities $ 136.0 $ 86.3 Non-current liabilities 1,056.8 884.6 Total liabilities $ 1,192.8 $ 970.9 Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 50% interest in ARO net income (loss) $ 1.3 $ 10.4 $ (4.0) $ 6.0 Amortization of basis differences 12.0 14.1 10.1 (2.9) Equity in earnings of ARO $ 13.3 $ 24.5 $ 6.1 $ 3.1 The following table summarizes the total assets and liabilities as reflected in our 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 Notes Receivable from ARO; and (3) other receivables and contract assets from ARO, partially offset by contract liabilities as well as payables to ARO. December 31, 2023 December 31, 2022 Total assets $ 417.1 $ 377.8 Less: total liabilities 73.6 59.9 Maximum exposure to loss $ 343.5 $ 317.9 |
Schedule of Related Party Transactions | Our balances related to the Lease Agreements were as follows (in millions): December 31, 2023 December 31, 2022 Amounts receivable (1) $ 10.2 $ 12.0 Contract liabilities (2) $ 15.9 $ 16.7 Accounts payable (2) $ 57.7 $ 43.2 (1) Amounts receivable from ARO is included in Accounts receivable, net in our Condensed Consolidated Balance Sheets. (2) The per day bareboat charter amount in the Lease Agreements is subject to adjustment based on actual performance of the respective rig and therefore, the corresponding contract liabilities are subject to adjustment during the lease term. Upon completion of the lease term, such amounts become a payable to or a receivable from ARO. The principal amount and discount of the Notes Receivable from ARO were as follows (in millions): December 31, 2023 December 31, 2022 Principal amount $ 402.7 $ 402.7 Discount (120.4) (148.7) Carrying value $ 282.3 $ 254.0 Interest income earned on the Notes Receivable from ARO was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Interest income $ 30.5 $ 11.3 $ 7.0 $ 3.5 Non-cash amortization (1) 28.3 44.9 20.8 — Total interest income on the Notes Receivable from ARO $ 58.8 $ 56.2 $ 27.8 $ 3.5 (1) Represents the amortization of the discount on the Notes Receivable from ARO using the effective interest method to interest income over the term of the notes. In 2022, we recognized non-cash interest income of $14.8 million attributable to a $40.0 million early principal repayment of the Notes Receivable from ARO received in September 2022. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments | The carrying values and estimated fair values of certain of our financial instruments were as follows (in millions): December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Second Lien Notes (1) $ 1,079.3 $ 1,126.1 $ — $ — First Lien Notes (1) — — 542.4 545.9 Long-term debt $ 1,079.3 $ 1,126.1 $ 542.4 $ 545.9 Long-term notes receivable from ARO (2) $ 282.3 $ 423.5 $ 254.0 $ 336.7 (1) The estimated fair value of the 8.375% Senior Secured Second Lien Notes due 2030 (the "Second Lien Notes") and Senior Secured First Lien Notes due 2028 (the "First Lien Notes"), which were discharged in full on April 3, 2023, were determined using quoted market prices, which are level 1 inputs. (2) The estimated fair value of our Notes Receivable from ARO was estimated using an income approach to value the forecasted cash flows attributed to the Notes Receivable from ARO using a discount rate based on a comparable yield with a country-specific risk premium, which are considered to be level 2 inputs. |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property And Equipment | Property and equipment consisted of the following (in millions): December 31, 2023 December 31, 2022 Drilling rigs and equipment $ 1,312.5 $ 1,036.5 Work-in-progress (1) 537.0 59.8 Other 39.5 38.2 $ 1,889.0 $ 1,134.5 (1) Work-in-progress as of December 31, 2023 includes the Newbuild Drillships, which were purchased for approximately $337.0 million, and a $13.1 million asset representing the fair value of the corresponding purchase option and embedded put option which was reclassified from Other assets upon purchase of the rigs. In December 2023, when the Company exercised its options to purchase the Newbuild Drillships, the corresponding put options expired and the Shipyard retained the Common shares issued to them in the plan of reorganization. See " Note 3 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Instrument Redemption | The following prices are for Second Lien Notes redeemed during the 12-month period commencing on April 30 of the years set forth below, and are expressed as percentages of principal amount: Redemption Year Price 2026 104.188% 2027 102.094% 2028 and thereafter 100.000% |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Activity In Our Various Shareholders' Equity | Activity in our various shareholders' equity accounts for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) were as follows (in millions): Shares Issued Par Value Additional Warrants Retained AOCI Treasury Non-controlling BALANCE, December 31, 2020 (Predecessor) 206.1 $ 82.6 $ 8,639.9 $ — $ (4,183.8) $ (87.9) $ (76.2) $ (4.3) Net income (loss) — — — — (4,467.0) — — 3.2 Shares issued under share-based compensation plans, net — — (0.7) — — — 0.7 — Net changes in pension and other postretirement benefits — — — — — 0.1 — — Share-based compensation cost — — 4.8 — — — — — Net other comprehensive loss — — — — — (5.6) — — Cancellation of Predecessor equity (206.1) (82.6) (8,644.0) — 8,650.8 93.4 75.5 — Issuance of Successor Common Shares and Warrants 75.0 0.8 1,078.7 16.4 — — — — BALANCE, April 30, 2021 (Predecessor) 75.0 $ 0.8 $ 1,078.7 $ 16.4 $ — $ — $ — $ (1.1) BALANCE, May 1, 2021 (Successor) 75.0 $ 0.8 $ 1,078.7 $ 16.4 $ — $ — $ — $ (1.1) Adjustment to unrecognized tax benefits — — — — 11.0 — — — Net income (loss) — — — — (27.4) — — 3.8 Net changes in pension and other postretirement benefits — — — — — (9.1) — — Share-based compensation cost — — 4.3 — — — — — BALANCE, December 31, 2021 (Successor) 75.0 $ 0.8 $ 1,083.0 $ 16.4 $ (16.4) $ (9.1) $ — $ 2.7 Net income — — — — 176.5 — — 5.3 Share-based compensation cost — — 17.4 — — — — Shares issued under share-based compensation plans, net 0.2 — — — — — — — Net changes in pension and other postretirement benefits — — — — — 23.8 — — Shares withheld for taxes on vesting of share-based awards — — (2.5) — — — — — BALANCE, December 31, 2022 (Successor) 75.2 $ 0.8 $ 1,097.9 $ 16.4 $ 160.1 $ 14.7 $ — $ 8.0 Net income — — — — 865.4 — — 1.4 Share-based compensation cost — — 27.3 — — — — — Shares issued under share-based compensation plans, net 0.2 — — — — — — — Repurchase of Common Shares — — — — — — (200.1) — Net changes in pension and other postretirement benefits — — — — — 10.8 — — Shares withheld for taxes on vesting of share-based awards — — (5.4) — — — — — Net other comprehensive loss — — — — — (0.3) — — BALANCE, December 31, 2023 (Successor) 75.4 $ 0.8 $ 1,119.8 $ 16.4 $ 1,025.5 $ 25.2 $ (200.1) $ 9.4 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary Of Non-Vested Share Award Related Compensation Expense Recognized | The following table summarizes Successor time-based share award compensation expense recognized (in millions): Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Contract drilling $ 6.8 $ 3.9 $ 1.6 General and administrative 9.0 6.8 2.0 15.8 10.7 3.6 Tax benefit (1.6) (0.9) (0.2) Total $ 14.2 $ 9.8 $ 3.4 |
Summary Of Value Of Non-Vested Share Awards Granted And Vested | The following tables summarizes the value of Successor time-based share awards granted and vested: Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Weighted-average grant date fair value of share awards granted (per share) $ 63.22 $ 45.39 $ 26.07 Total fair value of share awards vested during the period (in millions) (1) $ 25.2 $ 12.8 $ — (1) |
Summary Of Non-Vested Share Award Activity | The following table summarizes time-based share awards activity for the year ended December 31, 2023 (Successor) (shares in thousands): Share Awards Awards Weighted-Average Share awards as of December 31, 2022 861 $ 33.54 Granted 295 $ 63.22 Vested (1) (366) $ 32.89 Forfeited (32) $ 36.68 Share awards as of December 31, 2023 758 $ 45.29 (1) The vested share awards include 65,882 awards with a weighted average grant date fair value of $35.40 per share, for which delivery of the shares is deferred until the third anniversary of the date of grant. As of December 31, 2023, these awards had a weighted average remaining contractual life of 0.6 years and a total fair value of $4.5 million. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of the performance awards granted during the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor) are measured on the date of grant. The grant-date fair value per unit for the portion of the performance awards related to Performance-Based Objectives was equal to the closing price of the Company's stock on the grant date. The portion of these awards that were based on the Company's achievement of Market-based Objectives were valued at the date of grant using a Monte Carlo simulation with the following weighted average assumptions for the grants made over the years ended December 31, 2023 and 2022, and eight months ended December 31, 2021 (Successor): Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Expected price volatility 60 % 61 % 61 % Expected dividend yield — — — Risk-free interest rate 4.32 % 3.49 % 0.73 % |
Schedule Of Summary Of Performance Award Activity | The following table summarizes the performance award activity for the year ended December 31, 2023 (Successor) (shares in thousands): Awards (2) Weighted Average Grant Date Fair Value Price (2) Balance as of December 31, 2022 767 $ 21.77 Granted - Market-Based Objectives (1) 98 $ 59.28 Granted - Performance-Based Objectives (1) 29 $ 71.63 Total Granted 127 $ 62.09 Balance as of December 31, 2023 894 $ 27.49 (1) The number of awards granted reflects the shares that would be granted if the target level of performance were to be achieved. The number of shares actually issued after considering forfeitures may range from zero to 239,000. (2) There were no forfeited or vested shares for the year ended December 31, 2023 (Successor). |
Pension and Other Post-retire_2
Pension and Other Post-retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligations and Plan Assets | The following table presents the changes in benefit obligations and plan assets for the years ended December 31, 2023 and 2022 and the funded status and weighted-average assumptions used to determine the benefit obligation at the measurement date (dollars in millions): Year Ended December 31, 2023 2022 Pension Benefits Other Benefits Total Pension Benefits Other Benefits Total Projected benefit obligation: BALANCE at the beginning of the period $ 611.5 $ 11.6 $ 623.1 $ 827.9 $ 15.6 $ 843.5 Interest cost 30.6 0.6 31.2 22.0 0.4 22.4 Actuarial loss (gain) 6.1 (0.4) 5.7 (191.0) (3.8) (194.8) Plan settlements — — — (1.4) — (1.4) Benefits paid (41.7) (0.8) (42.5) (46.0) (0.6) (46.6) BALANCE at the end of the period $ 606.5 $ 11.0 $ 617.5 $ 611.5 $ 11.6 $ 623.1 Plan assets Fair value, at the beginning of the period $ 458.5 $ — $ 458.5 $ 634.6 $ — $ 634.6 Actual return 48.5 — 48.5 (132.2) — (132.2) Employer contributions 5.9 — 5.9 3.5 — 3.5 Plan settlements — — — (1.4) — (1.4) Benefits paid (41.7) — (41.7) (46.0) — (46.0) Fair value, at the end of the period $ 471.2 $ — $ 471.2 $ 458.5 $ — $ 458.5 Net benefit liabilities $ 135.3 $ 11.0 $ 146.3 $ 153.0 $ 11.6 $ 164.6 Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (3.6) $ (1.1) $ (4.7) $ (3.7) $ (1.1) $ (4.8) Other liabilities (long-term) (131.7) (9.9) (141.6) (149.3) (10.5) (159.8) Net benefit liabilities $ (135.3) $ (11.0) $ (146.3) $ (153.0) $ (11.6) $ (164.6) Accumulated contributions less than net periodic benefit cost $ (152.9) $ (18.9) $ (171.8) $ (159.8) $ (19.5) $ (179.3) Amounts not yet reflected in net periodic benefit cost: Actuarial loss 17.8 7.9 25.7 7.0 7.9 14.9 Prior service cost (0.2) — (0.2) (0.2) — (0.2) Total accumulated other comprehensive income $ 17.6 $ 7.9 $ 25.5 $ 6.8 $ 7.9 $ 14.7 Net benefit liabilities $ (135.3) $ (11.0) $ (146.3) $ (153.0) $ (11.6) $ (164.6) Weighted-average assumptions: Discount rate 4.97 % 5.00 % 5.21 % 5.30 % Cash balance interest credit rate 3.26 % N/A 3.23 % N/A |
Schedule of Accumulated and Projected Benefit Obligations | The accumulated benefit obligation, which is presented below for all plans in the aggregate at December 31, 2023 and 2022, is based on services rendered to date, but exclude the effect of future salary increases (in millions): 2023 2022 Accumulated benefit obligation $ 617.5 $ 623.1 |
Schedule of Net Periodic Pension Costs and Weighted Average Assumptions | The components of net periodic pension, retiree medical income and the weighted-average assumptions used to determine net periodic pension and retiree medical income were as follows (dollars in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Interest cost $ 31.2 $ 22.4 $ 15.6 $ 6.6 Expected return on plan assets (31.4) (38.3) (24.7) (12.1) Amortization of net (gain) loss (0.7) (0.1) — 0.1 Settlement (gain) loss recognized (1) — (0.4) 0.4 — Net periodic pension and retiree medical income (2) $ (0.9) $ (16.4) $ (8.7) $ (5.4) Discount rate 5.21 % 2.73 % 2.84 % 2.30 % Expected return on assets 7.10 % 6.26 % 6.03 % 6.03 % Cash balance interest credit rate 3.23 % 3.05 % 2.94 % 2.94 % (1) Settlement accounting is necessary when actual lump sums paid during a fiscal year exceed the sum of the service cost and interest cost for the year. During the year ended December 31, 2022 and eight months ended December 31, 2021 (Successor), the settlement threshold was reached for certain of our pension plans and we recognized a corresponding settlement (gain) loss in our Consolidated Statements of Operations. (2) All components of Net periodic pension and retiree medical income are included in Other, net, in our Consolidated Statements of Operations. |
Schedule of Allocation of Plan Assets | Target allocations among asset categories and the fair value of each category of plan assets as of December 31, 2023 and 2022, are presented below. The plans will reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in millions): December 31, 2023 December 31, 2022 Target range (1) Total Total Equities: U.S. equity: 23.9% to 33.9% U.S. large cap $ 105.5 $ 99.4 U.S. small/mid cap 28.7 25.4 Global Low Volatility Equity 3.4% to 13.4% 38.5 38.0 Non-U.S. equity: 19.7% to 29.7% International all cap 51.3 50.7 International small cap 23.1 22.4 Emerging markets 39.3 39.7 Real estate equities 3% to 13% 40.4 49.0 Fixed income: 25% to 35% Long-term corporate bonds 46.6 45.3 U.S. Treasury STRIPS 93.0 83.7 Cash and equivalents $0 - $5.0 4.8 4.9 Total $ 471.2 $ 458.5 (1) |
Schedule of Expected Benefit Payments | Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in millions): Pension Benefits Other Post-Retirement Benefits Year ended December 31, 2024 $ 42.4 $ 1.2 2025 41.2 1.0 2026 40.7 0.9 2027 40.4 0.9 2028 40.1 0.8 2029 through 2033 193.0 3.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Summary Of Components Of Provision For Income Taxes From Continuing Operations | The components of our provision for income taxes are summarized as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Current income tax expense (benefit): U.S. $ (30.3) $ 12.4 $ 5.5 $ — Non-U.S. 34.1 22.8 52.2 34.4 3.8 35.2 57.7 34.4 Deferred income tax expense (benefit): U.S. 1.9 8.5 (6.6) — Non-U.S. (788.3) (0.6) (14.7) (18.2) (786.4) 7.9 (21.3) (18.2) Total income tax expense (benefit) $ (782.6) $ 43.1 $ 36.4 $ 16.2 |
Summary Of Significant Components Of Deferred Income Tax Assets (Liabilities) | The components of deferred income tax assets and liabilities are summarized as follows (in millions): December 31, 2023 December 31, 2022 Deferred tax assets : Net operating loss carryforwards $ 3,308.9 $ 3,028.7 Property and equipment 1,535.1 1,454.8 Interest limitation carryforwards 123.4 193.4 Foreign tax credits 44.7 60.7 Employee benefits, including share-based compensation 41.6 43.1 Premiums on long-term debt 6.0 8.1 Other 14.4 20.1 Valuation allowance (4,192.4) (4,720.3) Total deferred tax assets 881.7 88.6 Deferred tax liabilities (26.8) (19.4) Net deferred tax asset $ 854.9 $ 69.2 |
Summary Of Effective Income Tax Rate On Continuing Operations | Our consolidated effective income tax rate for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor), respectively, differs from the Bermuda and U.K. statutory income tax rates as follows: Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Bermuda (Successor)/ U.K. (Predecessor) statutory income tax rate — % — % — % 19.0 % Non-Bermuda (Successor) taxes 74.0 22.8 376.0 — Valuation allowance (953.6) 0.6 (119.5) (1.8) Resolution of prior year items (49.9) (7.0) 216.2 (0.4) Switzerland Tax Reform — — (188.3) — Asset impairments — — — (3.2) Other — 2.8 — (14.0) Effective income tax rate (929.5) % 19.2 % 284.4 % (0.4) % |
Summary Of Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) (in millions) were as follows: Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Balance, beginning of period $ 217.6 $ 235.1 $ 235.4 $ 237.7 Increase as a result of tax positions taken during prior years 88.6 3.0 34.6 2.9 Lapse of applicable statutes of limitations (73.6) (4.5) (20.2) (0.2) Settlements with taxing authorities (41.8) (16.5) (6.6) — Increases as a result of tax positions taken during the current year 13.4 11.2 6.9 12.6 Impact of foreign currency exchange rates 0.6 (9.7) (10.5) (17.6) Decreases as a result of tax positions taken during prior years (3.4) (1.0) (4.5) — Balance, end of period $ 201.4 $ 217.6 $ 235.1 $ 235.4 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Long-term operating lease cost $ 24.6 $ 13.4 $ 12.9 $ 9.1 Short-term operating lease cost 13.2 15.2 14.3 6.3 Variable lease cost (1) 11.3 1.0 1.0 0.7 Total operating lease cost $ 49.1 $ 29.6 $ 28.2 $ 16.1 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): December 31, 2023 December 31, 2022 Operating lease right-of-use assets $ 74.6 $ 21.0 Current lease liability $ 27.2 $ 9.4 Long-term lease liability 48.9 13.8 Total operating lease liabilities $ 76.1 $ 23.2 Weighted-average remaining lease term (in years) 3.6 5.0 Weighted-average discount rate (1) 8.21 % 7.48 % (1) Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases. Supplemental cash flow information related to our operating leases is as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 ROU assets obtained in exchange for operating lease liabilities $ 80.3 $ 14.7 $ 0.9 $ 5.5 Cash paid for amounts included in the measurement of our operating lease liabilities $ 26.2 $ 14.0 $ 11.7 $ 7.1 |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023 were as follows (in millions): 2024 $ 32.4 2025 20.5 2026 19.1 2027 10.0 2028 2.4 Thereafter 3.7 Total lease payments $ 88.1 Less imputed interest (12.0) Total $ 76.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Schedule Of Segment Reporting Information | Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 948.7 $ 659.6 $ 496.6 $ 175.9 $ (496.6) $ 1,784.2 Operating expenses Contract drilling (exclusive of depreciation) 812.0 517.4 365.9 75.2 (226.9) 1,543.6 Depreciation 55.8 40.0 65.9 5.0 (65.6) 101.1 General and administrative — — 22.2 — 77.1 99.3 Equity in earnings of ARO — — — — 13.3 13.3 Operating income $ 80.9 $ 102.2 $ 42.6 $ 95.7 $ (267.9) $ 53.5 Property and equipment, net $ 1,035.5 $ 480.8 $ 1,036.6 $ 52.1 $ (971.2) $ 1,633.8 Capital expenditures $ 562.0 $ 132.3 $ 300.8 $ — $ (299.0) $ 696.1 Year Ended December 31, 2022 (Successor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 700.5 $ 744.2 $ 459.5 $ 157.8 $ (459.5) $ 1,602.5 Operating expenses Contract drilling (exclusive of depreciation) 646.0 538.9 341.8 76.4 (219.9) 1,383.2 Loss on impairment 34.5 — — — — 34.5 Depreciation 50.0 36.1 63.4 4.6 (62.9) 91.2 General and administrative — — 18.7 — 62.2 80.9 Equity in earnings of ARO — — — — 24.5 24.5 Operating income (loss) $ (30.0) $ 169.2 $ 35.6 $ 76.8 $ (214.4) $ 37.2 Property and equipment, net $ 487.5 $ 391.7 $ 775.6 $ 56.8 $ (734.4) $ 977.2 Capital expenditures $ 152.9 $ 53.5 $ 103.7 $ — $ (103.1) $ 207.0 Eight Months Ended December 31, 2021 (Successor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 254.5 $ 487.1 $ 307.1 $ 93.4 $ (307.1) $ 835.0 Operating expenses Contract drilling (exclusive of depreciation) 250.7 365.2 246.2 38.9 (176.9) 724.1 Depreciation 31.0 32.0 44.2 2.8 (43.9) 66.1 General and administrative — — 13.6 — 44.6 58.2 Equity in earnings of ARO — — — — 6.1 6.1 Operating income (loss) $ (27.2) $ 89.9 $ 3.1 $ 51.7 $ (124.8) $ (7.3) Property and equipment, net $ 408.2 $ 401.9 $ 730.6 $ 46.0 $ (695.8) $ 890.9 Capital expenditures $ 26.0 $ 23.7 $ 41.8 $ — $ (41.3) $ 50.2 Four Months Ended April 30, 2021 (Predecessor) Floaters Jackups ARO Other Reconciling Items Consolidated Total Revenues $ 115.7 $ 232.4 $ 163.5 $ 49.3 $ (163.5) $ 397.4 Operating expenses Contract drilling (exclusive of depreciation) 106.5 175.0 116.1 19.9 (73.7) 343.8 Loss on impairment 756.5 — — — — 756.5 Depreciation 72.1 69.7 21.0 14.8 (18.0) 159.6 General and administrative — — 4.2 — 26.5 30.7 Equity in earnings of ARO — — — — 3.1 3.1 Operating income (loss) $ (819.4) $ (12.3) $ 22.2 $ 14.6 $ (95.2) $ (890.1) Property and equipment, net $ 419.3 $ 401.4 $ 730.7 $ 50.5 $ (692.8) $ 909.1 Capital expenditures $ 3.3 $ 5.4 $ 14.9 $ — $ (14.9) $ 8.7 |
Schedule Of Geographic Distribution Of Rigs By Segment | As of December 31, 2023, the geographic distribution of our and ARO's drilling rigs was as follows: Floaters Jackups Other Total Valaris ARO Middle East & Africa 3 5 8 16 8 North & South America 9 7 — 16 — Europe 4 12 — 16 — Asia & Pacific Rim 2 3 — 5 — Total 18 27 8 53 8 |
Schedule Of Revenues And Long-Lived Assets By Geographical Segment | Information by country for those countries that account for more than 10% of our long-lived assets, was as follows (in millions): Long-lived Assets December 31, 2023 December 31, 2022 Spain $ 438.9 $ 117.7 Brazil 374.5 102.0 United Kingdom 277.8 185.2 United States 206.5 166.3 Other countries (1) 410.7 427.0 Total $ 1,708.4 $ 998.2 (1) Other countries includes countries where individually we had long-lived assets representing less than 10% of total long-lived assets. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Financial Information [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net, consisted of the following (in millions): December 31, 2023 December 31, 2022 Trade $ 375.2 $ 345.7 Income tax receivables 83.2 93.6 Other 16.2 24.6 474.6 463.9 Allowance for doubtful accounts (15.3) (14.8) $ 459.3 $ 449.1 |
Other Current Assets | Other current assets consisted of the following (in millions): December 31, 2023 December 31, 2022 Deferred costs $ 75.3 $ 59.1 Prepaid taxes 49.1 44.6 Prepaid expenses 23.6 17.5 Other 29.2 27.4 $ 177.2 $ 148.6 |
Schedule of Accrued Liabilities | Accrued liabilities and other consisted of the following (in millions): December 31, 2023 December 31, 2022 Current contract liabilities (deferred revenues) $ 116.2 $ 78.0 Personnel costs 76.6 55.8 Income and other taxes payable 52.9 41.4 Lease liabilities 27.2 9.4 Accrued claims 20.4 27.2 Accrued interest 15.4 7.6 Other 35.5 28.5 $ 344.2 $ 247.9 |
Other Liabilities | Other liabilities consisted of the following (in millions): December 31, 2023 December 31, 2022 Unrecognized tax benefits (inclusive of interest and penalties) $ 224.0 $ 275.0 Pension and other post-retirement benefits 141.6 159.8 Lease liabilities 48.9 13.8 Noncurrent contract liabilities (deferred revenues) 37.6 41.0 Other 19.6 9.9 $ 471.7 $ 499.5 |
Repair And Maintenance Expense Related To Continuing Operations | Repair and maintenance expense related to continuing operations was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Repair and maintenance expense $ 203.3 $ 175.2 $ 76.3 $ 48.4 |
Schedule of Other Nonoperating Income, by Component | Other, net, consisted of the following (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Loss on extinguishment of debt $ (29.2) $ — $ — $ — Net gain on sale of property 28.6 141.2 21.2 6.0 Net foreign currency exchange gains (losses) (3.5) 12.2 8.1 13.4 Net periodic pension and retiree medical income 0.9 16.4 8.7 5.4 Other income 1.4 0.1 0.1 1.1 $ (1.8) $ 169.9 $ 38.1 $ 25.9 |
Schedule of Cash Flows Information | Net cash used in operating activities attributable to the net change in operating assets and liabilities was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 (Increase) decrease in accounts receivable $ 44.9 $ (6.9) $ (18.3) $ 23.2 (Increase) decrease in other assets (5.9) 0.5 9.0 15.7 Increase (decrease) in liabilities 82.8 (0.2) 29.3 38.2 $ 121.8 $ (6.6) $ 20.0 $ 77.1 |
Cash Paid For Interest And Income Taxes | Additional cash flow information was as follows (in millions): Successor Predecessor Year Ended December 31, 2023 Year Ended December 31, 2022 Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Cash paid for interest and taxes Interest paid, net of amounts capitalized $ 32.3 $ 44.2 $ 22.8 $ — Income taxes paid (refunded), net $ (8.3) $ 5.6 $ 23.5 $ (16.9) Non-cash investing activities Accruals for capital expenditures as of period end (1) $ 71.5 $ 22.1 $ 9.3 $ 6.5 (1) Accruals for capital expenditures were excluded from investing activities in our Consolidated Statements of Cash Flows. |
Revenue from External Customers by Products and Services | Consolidated revenues with customers that individually contributed 10% or more of revenue in the years ended December 31, 2023 and 2022, eight months ended December 31, 2021 (Successor), and four months ended April 30, 2021 (Predecessor) were as follows: Successor Year Ended December 31, 2023 Year Ended December 31, 2022 Floaters Jackups Other Total Floaters Jackups Other Total BP plc ("BP") — % 5 % 6 % 11 % 6 % 3 % 6 % 15 % Other customers 53 % 32 % 4 % 89 % 38 % 43 % 4 % 85 % 53 % 37 % 10 % 100 % 44 % 46 % 10 % 100 % Successor Predecessor Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Floaters Jackups Other Total Floaters Jackups Other Total BP 2 % 2 % 7 % 11 % 5 % 2 % 7 % 14 % Other customers 29 % 56 % 4 % 89 % 24 % 57 % 5 % 86 % 31 % 58 % 11 % 100 % 29 % 59 % 12 % 100 % |
Revenue from External Customers by Geographic Areas | Geographic Concentration - 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 were as follows (in millions): Successor Year Ended December 31, 2023 Year Ended December 31, 2022 Floaters Jackups Other Total Floaters Jackups Other Total U.S. Gulf of Mexico $ 220.9 $ 27.2 $ 104.7 $ 352.8 $ 230.9 $ 21.3 $ 99.0 $ 351.2 United Kingdom — 267.2 — 267.2 — 264.5 — 264.5 Angola 210.9 — — 210.9 78.5 — — 78.5 Brazil 195.0 — — 195.0 111.5 — — 111.5 Australia 157.0 29.9 — 186.9 113.0 30.0 — 143.0 Saudi Arabia — 41.2 71.2 112.4 — 78.3 58.8 137.1 Mexico 65.9 38.7 — 104.6 13.9 58.1 — 72.0 Norway — 2.4 — 2.4 — 114.6 — 114.6 Other countries 99.0 253.0 — 352.0 152.7 177.4 — 330.1 $ 948.7 $ 659.6 $ 175.9 $ 1,784.2 $ 700.5 $ 744.2 $ 157.8 $ 1,602.5 Successor Predecessor Eight Months Ended December 31, 2021 Four Months Ended April 30, 2021 Floaters Jackups Other Total Floaters Jackups Other Total U.S. Gulf of Mexico $ 52.8 $ 0.7 $ 56.4 $ 109.9 $ 47.9 $ 0.2 $ 26.3 $ 74.4 United Kingdom — 185.2 — 185.2 — 75.7 — 75.7 Angola 19.4 — — 19.4 20.5 — — 20.5 Brazil 38.6 — — 38.6 — — — — Australia 46.2 29.3 — 75.5 0.8 0.2 — 1.0 Saudi Arabia — 55.3 37.0 92.3 — 30.5 23.0 53.5 Mexico 37.0 40.8 — 77.8 21.6 22.7 — 44.3 Norway — 123.9 — 123.9 — 73.3 — 73.3 Other countries 60.5 51.9 — 112.4 24.9 29.8 — 54.7 $ 254.5 $ 487.1 $ 93.4 $ 835.0 $ 115.7 $ 232.4 $ 49.3 $ 397.4 (1) Other countries includes locations that individually contributed to less than 10% of total revenues. |
Description Of The Business A_4
Description Of The Business And Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Mar. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2023 USD ($) floater rigs jackup $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | rigs | 53 | |||||
Net foreign currency exchange gains (losses) | $ | $ 13.4 | $ 8.1 | $ (3.5) | $ 12.2 | ||
Asset Impairment Charges | $ | $ 34.5 | $ 5.6 | $ 756.5 | $ 0 | $ 0 | $ 34.5 |
Class of Warrant or Right, Outstanding | shares | 5,600,000 | 5,470,950 | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 14.39 | $ 0.01 | $ 0.01 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 131.88 | |||||
Warranted, Period Exercisable | 7 years | |||||
Antidilutive share options excluded from computation of diluted earnings per share | shares | 300,000 | 600,000 | 147,000 | 192,000 | ||
Drilling rigs and equipment [Member] | Minimum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Drilling rigs and equipment [Member] | Maximum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 35 years | |||||
Building and Building Improvements [Member] | Minimum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||
Building and Building Improvements [Member] | Maximum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 30 years | |||||
Equipment [Member] | Minimum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 2 years | |||||
Equipment [Member] | Maximum | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 6 years | |||||
Other Rigs [Member] | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Asset Impairment Charges | $ | $ 756.5 | $ 34.5 | ||||
Floaters [Member] | Ultra Deepwater Drillships [Member] | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | 13 | |||||
Floaters [Member] | Dynamically Positioned Semisubmersible [Member] | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | 4 | |||||
Floaters [Member] | Moored Semisubmersible Rigs [Member] | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | 1 | |||||
Jackups [Member] | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | jackup | 35 | |||||
ARO | ||||||
Description Of The Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of contract drilling rigs | 8 |
Description Of The Business A_5
Description Of The Business And Summary Of Significant Accounting Policies (Schedule Of Income From Continuing Operations Attributable To Valaris) (Details) - USD ($) shares in Thousands, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||||
NET LOSS ATTRIBUTABLE TO VALARIS | $ (4,467) | $ (27.4) | $ 865.4 | $ 176.5 | |
Basic | 199,600 | 75,000 | 74,100 | 75,100 | |
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements | 0 | 0 | 1,100 | 500 | |
Diluted | 199,600 | 75,000 | 75,200 | 75,600 | 199,600 |
Chapter 11 Proceedings and Ab_3
Chapter 11 Proceedings and Ability to Continue as a Going Concern - Narrative (Details) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Contractual interest expense | $ 132,900,000 | |||
Debtor Reorganization Items, Discharge of Claims and Liabilities | $ 7,100,000,000 | |||
Plan Of Reorganization, Percent Of Subscription Rights | 97.60% | |||
Class of Warrant or Right, Outstanding | 5,600,000 | 5,600,000 | 5,470,950 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 131.88 | $ 131.88 | ||
Warranted, Period Exercisable | 7 years | |||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 0 | |||
Liabilities Subject To Compromise, Accrued Interest On Notes | $ 203,500,000 | |||
Revolving Credit Facility [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liabilities Subject To Compromise, Long-term Debt | 581,000,000 | |||
Management Incentive Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,000,000 | 9,000,000 | ||
Senior Noteholders [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 38.48% | |||
Plan Of Reorganization, Securities Issued | 28,900,000 | |||
Lenders under Revolving Credit Facility Participating in Rights Offering [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 0.70% | |||
Plan Of Reorganization, Securities Issued | 500,000 | |||
Lenders Under Revolving Credit Facility Not Participating in Rights Offering [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 22.98% | |||
Debtor-in-Possession Financing, Amount Arranged | $ 96,100,000 | $ 96,100,000 | ||
Plan Of Reorganization, Securities Issued | 17,200,000 | |||
Senior Noteholders Who Agreed To Backstop The Rights Offering [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 2.63% | |||
Debtor-in-Possession Financing, Amount Arranged | $ 48,800,000 | 48,800,000 | ||
Plan Of Reorganization, Securities Issued | 2,000,000 | |||
Senior Noteholders Participating In Rights Offering [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 29.30% | |||
Plan Of Reorganization, Securities Issued | 22,000,000 | |||
Lenders Under Revolving Credit Facility Who Agreed to Backstop The Rights Offering [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 0.07% | |||
Debtor-in-Possession Financing, Amount Arranged | $ 1,200,000 | 1,200,000 | ||
Plan Of Reorganization, Securities Issued | 49,500 | |||
Two RCF Lendors Participating In The Rights Offering | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 5.30% | |||
Debtor-in-Possession Financing, Amount Arranged | $ 7,800,000 | 7,800,000 | ||
Plan Of Reorganization, Securities Issued | 4,000,000 | |||
Daewoo Shipbuilding & Marine Engineering Co., Ltd. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Amount Arranged | $ 5,000,000 | $ 5,000,000 | ||
Plan Of Reorganization, Securities Issued | 400,000 | |||
First Lien Notes | Two RCF Lendors Participating In The Rights Offering | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Plan Of Reorganization, Pro Rata Share Percentage | 2.427% | |||
Senior Notes [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Cash Payment | $ 26,000,000 | |||
Liabilities Subject To Compromise, Long-term Debt | $ 6,500,000,000 | |||
Senior Notes [Member] | Six Point Eight Seven Five Percent Senior Notes Due Two Thousand Twenty Member | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 6.875% | 6.875% | ||
Senior Notes [Member] | Seven Point Eight Seven Five Percent Senior Notes Due Twenty Forty [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 7.875% | 7.875% | ||
Senior Notes [Member] | Four Point Eight Seven Five Percent Senior Notes Due Twenty Twenty Two [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 4.875% | 4.875% | ||
Senior Notes [Member] | Four Point Seven Five Percent Senior Notes Due Twenty Twenty Four [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 4.75% | 4.75% | ||
Senior Notes [Member] | Seven Point Three Seven Five Senior Notes Due Twenty Twenty Five [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 7.375% | 7.375% | ||
Senior Notes [Member] | Five Point Four Zero Percent Senior Notes Due Twenty Forty Two [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 5.40% | 5.40% | ||
Senior Notes [Member] | Five Point Eight Five Percent Senior Notes Due Twenty Forty Four [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 5.85% | 5.85% | ||
Senior Notes [Member] | First Lien Notes | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Amount Arranged | $ 520,000,000 | $ 520,000,000 | ||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | ||
Senior Notes [Member] | Seven Point Two Zero Debenture Due Twenty Twenty Seven | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 7.20% | 7.20% |
Chapter 11 Proceedings and Ab_4
Chapter 11 Proceedings and Ability to Continue as Going Concern - Schedule of Reorganization Items (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Reorganizations [Abstract] | ||||
Professional fees | $ 93.4 | $ 17.2 | $ 2.4 | |
Contract items | 3.9 | (1.7) | 0 | |
Reorganization items (fees) | 97.3 | 15.5 | 2.4 | |
Contract items | 0.5 | 0 | 0 | |
Backstop premium | 30 | 0 | 0 | |
Debtor Reorganization Items, Gain (Loss) on Settlement of Other Claims, Net | (6,139) | 0 | 0 | |
Debtor Reorganization items, Issuance Of Equity Backstop Premium | 29.1 | 0 | 0 | |
Debtor Reorganization Items, Issuance Of Common Shares To The Shipyard | 5.4 | 0 | 0 | |
Debtor Reorganization items, Share-Based Compensation Expense | 16 | 0 | 0 | |
Debtor Reorganization items, Contract For Property, Plant And Equipment | 350.7 | 0 | 0 | |
Debtor Reorganization items, Loss On Fresh-Start Adjustments | 9,194.6 | 0 | 0 | |
Debtor Reorganization Items, Non-cash | 3,487.3 | 0 | $ 0 | 0 |
Reorganization Items, Total | 3,584.6 | 15.5 | $ 0 | 2.4 |
Debtor Reorganization Items, Items (Fees), Paid | 59 | 14.7 | 2.4 | |
Debtor Reorganization Items, Items (Fees), Unpaid | $ 38.3 | $ 0.8 | $ 0 |
Fresh Start Accounting - Narrat
Fresh Start Accounting - Narrative (Details) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Reorganization, Chapter 11 [Line Items] | |||||
Enterprise Value | $ 1,860,000,000 | $ 1,860,000,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.81% | 2.81% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.03% | 6.03% | 6.03% | 7.10% | 6.26% |
Property, Plant and Equipment, Net | $ 909,100,000 | $ 909,100,000 | $ 890,900,000 | $ 1,633,800,000 | $ 977,200,000 |
Prepaid Rent, Per Rig | 8,000,000 | 8,000,000 | |||
Predecessor, Additional Paid In Capital | 0 | 0 | |||
Treasury Stock, Value | $ 0 | $ 0 | |||
Common shares, shares issued | 75,000,000 | 75,000,000 | 75,400,000 | 75,200,000 | |
Additional paid-in capital | $ 1,078,700,000 | $ 1,078,700,000 | $ 1,119,800,000 | $ 1,097,900,000 | |
Class Of Warrant, Exercisable | 5,600,000 | ||||
Warrants and Rights Outstanding | $ 16,400,000 | 16,400,000 | $ 16,400,000 | $ 16,400,000 | |
Reorganization, Chapter 11, Plan Effect Adjustment | |||||
Reorganization, Chapter 11 [Line Items] | |||||
Property, Plant and Equipment, Net | (417,600,000) | (417,600,000) | |||
Debt Instrument, Face Amount | 550,000,000 | 550,000,000 | |||
Debt Issuance Costs, Net | (5,200,000) | (5,200,000) | |||
Common Stock, Value, Issued | (800,000) | (800,000) | |||
Predecessor, Additional Paid In Capital | 8,644,000,000 | 8,644,000,000 | |||
Treasury Stock, Value | $ 75,500,000 | $ 75,500,000 | |||
Common shares, shares issued | 75,000,000 | 75,000,000 | |||
Additional paid-in capital | $ 1,078,700,000 | $ 1,078,700,000 | |||
Warrants and Rights Outstanding | 16,400,000 | 16,400,000 | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Common Class A And B Shares | |||||
Reorganization, Chapter 11 [Line Items] | |||||
Common Stock, Value, Issued | 82,600,000 | 82,600,000 | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Work in progress | |||||
Reorganization, Chapter 11 [Line Items] | |||||
Property, Plant and Equipment, Net | (417,600,000) | (417,600,000) | |||
Minimum | |||||
Reorganization, Chapter 11 [Line Items] | |||||
Enterprise Value | 1,860,000,000 | 1,860,000,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.10% | ||||
Maximum | |||||
Reorganization, Chapter 11 [Line Items] | |||||
Enterprise Value | $ 3,145,000,000 | $ 3,145,000,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.88% |
Fresh Start Accounting - Schedu
Fresh Start Accounting - Schedule of Enterprise Value (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | |||
Enterprise Value | $ 1,860 | ||
Cash and cash equivalents | 607.6 | $ 620.5 | $ 724.1 |
Long-term Debt, Fair Value | (544.8) | ||
Warrants and Rights Outstanding | (16.4) | (16.4) | (16.4) |
Stockholders' Equity Attributable to Noncontrolling Interest | 1.1 | $ (9.4) | $ (8) |
Liability, Other Postretirement Defined Benefit Plan, Noncurrent | (189) | ||
Other Liabilities | (639) | ||
Stockholders' Equity Attributable To Parent, Successor | $ (1,079.5) | ||
Stock Issued During Period, Shares, New Issues | 75 | ||
Common Stock, Par or Stated Value Per Share | $ 14.39 | $ 0.01 | $ 0.01 |
Fresh Start Accounting - Sche_2
Fresh Start Accounting - Schedule of Reorganization Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 |
Reorganizations [Abstract] | |||
Enterprise Value | $ 1,860 | ||
Cash and cash equivalents | $ 620.5 | $ 724.1 | 607.6 |
Non-Interest Bearing Liabilities, Current | 346 | ||
Adjustments Not Contemplated In The Enterprise Value | 218 | ||
TOTAL ASSETS | $ 4,322.2 | $ 2,860.3 | $ 2,595.6 |
Fresh Start Accounting - Conden
Fresh Start Accounting - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2021 |
Reorganization, Chapter 11 [Line Items] | ||||
Cash and cash equivalents | $ 620.5 | $ 724.1 | $ 607.6 | |
Restricted Cash | 15.2 | 24.4 | 88.4 | |
Accounts receivable, net | 459.3 | 449.1 | 425.9 | |
Other | 177.2 | 148.6 | 90.5 | |
Total current assets | 1,272.2 | 1,346.2 | 1,212.4 | |
Property, Plant and Equipment, Net | 1,633.8 | 977.2 | $ 890.9 | 909.1 |
LONG-TERM NOTES RECEIVABLE FROM ARO | 282.3 | 254 | 228.3 | |
INVESTMENT IN ARO | 124.4 | 111.1 | 80.5 | |
OTHER ASSETS | 154.4 | 116.7 | 165.3 | |
TOTAL ASSETS | 4,322.2 | 2,860.3 | 2,595.6 | |
Accounts payable - trade | 400.1 | 256.5 | 174.1 | |
Accrued Liabilities and Other Liabilities | 216.5 | |||
Liabilities, Current | 744.3 | 504.4 | 390.6 | |
Long-term Debt | 544.8 | |||
Other Liabilities, Noncurrent | 471.7 | 499.5 | 565.4 | |
Liabilities Not Subject to Compromise | 1,500.8 | |||
Liabilities Subject to Compromise | 0 | |||
Warrants and Rights Outstanding | 16.4 | 16.4 | 16.4 | |
Predecessor, Additional Paid In Capital | 0 | |||
Additional paid-in capital | 1,119.8 | 1,097.9 | 1,078.7 | |
Retained earnings | 1,025.5 | 160.1 | 0 | |
Accumulated other comprehensive income | 25.2 | 14.7 | 0 | |
Treasury Stock, Value | 0 | |||
Total Valaris shareholders' equity | 1,987.6 | 1,289.9 | 1,095.9 | |
NONCONTROLLING INTERESTS | 9.4 | 8 | (1.1) | |
Total equity | 1,997 | 1,297.9 | 1,094.8 | |
Liabilities and Equity | $ 4,322.2 | $ 2,860.3 | 2,595.6 | |
Class A Ordinary Shares, U.S. [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0 | |||
Common Class B, Par Value In GBP [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0 | |||
Common Stock [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0.8 | |||
Reorganization, Chapter 11, Predecessor, before Adjustment | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Cash and cash equivalents | 280.2 | |||
Restricted Cash | 45.7 | |||
Accounts receivable, net | 425.9 | |||
Other | 370.1 | |||
Total current assets | 1,121.9 | |||
Property, Plant and Equipment, Net | 10,026.4 | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | 442.7 | |||
INVESTMENT IN ARO | 123.9 | |||
OTHER ASSETS | 166.4 | |||
TOTAL ASSETS | 11,881.3 | |||
Accounts payable - trade | 161.5 | |||
Accrued Liabilities and Other Liabilities | 290.7 | |||
Liabilities, Current | 452.2 | |||
Long-term Debt | 0 | |||
Other Liabilities, Noncurrent | 706.2 | |||
Liabilities Not Subject to Compromise | 1,158.4 | |||
Liabilities Subject to Compromise | 7,313.7 | |||
Warrants and Rights Outstanding | 0 | |||
Predecessor, Additional Paid In Capital | 8,644 | |||
Additional paid-in capital | 0 | |||
Retained earnings | (5,147.4) | |||
Accumulated other comprehensive income | (93.4) | |||
Treasury Stock, Value | (75.5) | |||
Total Valaris shareholders' equity | 3,410.3 | |||
NONCONTROLLING INTERESTS | (1.1) | |||
Total equity | 3,409.2 | |||
Liabilities and Equity | 11,881.3 | |||
Reorganization, Chapter 11, Predecessor, before Adjustment | Class A Ordinary Shares, U.S. [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 82.5 | |||
Reorganization, Chapter 11, Predecessor, before Adjustment | Common Class B, Par Value In GBP [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0.1 | |||
Reorganization, Chapter 11, Predecessor, before Adjustment | Common Stock [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0 | |||
Reorganization, Chapter 11, Plan Effect Adjustment | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Cash and cash equivalents | 327.4 | |||
Restricted Cash | 42.7 | |||
Accounts receivable, net | 0 | |||
Other | 1.5 | |||
Total current assets | 371.6 | |||
Property, Plant and Equipment, Net | (417.6) | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | 0 | |||
INVESTMENT IN ARO | 0 | |||
OTHER ASSETS | (10) | |||
TOTAL ASSETS | (56) | |||
Accounts payable - trade | 13.1 | |||
Accrued Liabilities and Other Liabilities | (12.4) | |||
Liabilities, Current | 0.7 | |||
Long-term Debt | 544.8 | |||
Other Liabilities, Noncurrent | (55.2) | |||
Liabilities Not Subject to Compromise | 490.3 | |||
Liabilities Subject to Compromise | (7,313.7) | |||
Common shares, value | 0.8 | |||
Warrants and Rights Outstanding | 16.4 | |||
Predecessor, Additional Paid In Capital | (8,644) | |||
Additional paid-in capital | 1,078.7 | |||
Retained earnings | 14,322.6 | |||
Accumulated other comprehensive income | 0 | |||
Treasury Stock, Value | 75.5 | |||
Total Valaris shareholders' equity | 6,767.4 | |||
NONCONTROLLING INTERESTS | 0 | |||
Total equity | 6,767.4 | |||
Liabilities and Equity | (56) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Class A Ordinary Shares, U.S. [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | (82.5) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Common Class B, Par Value In GBP [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | (0.1) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Common Stock [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0.8 | |||
Reorganization, Chapter 11, Fresh-Start Adjustment | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Restricted Cash | 0 | |||
Accounts receivable, net | 0 | |||
Other | (281.1) | |||
Total current assets | (281.1) | |||
Property, Plant and Equipment, Net | (8,699.7) | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | (214.4) | |||
INVESTMENT IN ARO | (43.4) | |||
OTHER ASSETS | 8.9 | |||
TOTAL ASSETS | (9,229.7) | |||
Accounts payable - trade | (0.5) | |||
Accrued Liabilities and Other Liabilities | (61.8) | |||
Liabilities, Current | (62.3) | |||
Long-term Debt | 0 | |||
Other Liabilities, Noncurrent | (85.6) | |||
Liabilities Not Subject to Compromise | (147.9) | |||
Liabilities Subject to Compromise | 0 | |||
Warrants and Rights Outstanding | 0 | |||
Predecessor, Additional Paid In Capital | 0 | |||
Additional paid-in capital | 0 | |||
Retained earnings | (9,175.2) | |||
Accumulated other comprehensive income | 93.4 | |||
Treasury Stock, Value | 0 | |||
Total Valaris shareholders' equity | (9,081.8) | |||
NONCONTROLLING INTERESTS | 0 | |||
Total equity | (9,081.8) | |||
Liabilities and Equity | (9,229.7) | |||
Reorganization, Chapter 11, Fresh-Start Adjustment | Class A Ordinary Shares, U.S. [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0 | |||
Reorganization, Chapter 11, Fresh-Start Adjustment | Common Class B, Par Value In GBP [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | 0 | |||
Reorganization, Chapter 11, Fresh-Start Adjustment | Common Stock [Member] | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | $ 0 |
Fresh Start Accounting - Sche_3
Fresh Start Accounting - Schedule of Fresh Start Accounting Adjustments (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Reorganization, Chapter 11 [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 74.6 | $ 21 | ||
Operating Lease, Liability | 76.1 | 23.2 | ||
Accrued Liabilities and Other Liabilities | $ 216.5 | |||
Other Liabilities, Noncurrent | 565.4 | 471.7 | 499.5 | |
Liabilities Subject to Compromise | 0 | |||
Treasury Stock, Value | 0 | |||
Warrants and Rights Outstanding | 16.4 | 16.4 | 16.4 | |
Retained Earnings (Accumulated Deficit) | 0 | (1,025.5) | (160.1) | |
Other | 90.5 | 177.2 | 148.6 | |
Contract with Customer, Asset, after Allowance for Credit Loss | 6 | 5.3 | $ 0.3 | |
Other Deferred Costs, Net | 75.3 | 59.1 | ||
OTHER ASSETS | 165.3 | 154.4 | 116.7 | |
Contract with Customer, Liability, Current | 116.2 | 78 | ||
Operating Lease, Liability, Current | 27.2 | 9.4 | ||
Other liabilities (long-term) | (141.6) | (159.8) | ||
Property, Plant and Equipment, Net | 909.1 | 1,633.8 | 977.2 | $ 890.9 |
Accrued liabilities and other | $ 344.2 | $ 247.9 | ||
Reorganization, Chapter 11, Plan Effect Adjustment | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Proceeds from Issuance of Debt | 500 | |||
Proceeds from Loans | 20 | |||
Proceeds from Decommissioning Trust Fund Assets | 17.6 | |||
Repayments of Lines of Credit | (129.9) | |||
Transfer Of Funds To Escrow | (42.7) | |||
Professional Fees | (29) | |||
Other Cash | (8.6) | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 327.4 | |||
Compensation and Benefits Trust | (17.6) | |||
Operating Lease, Right-of-Use Asset | (5.5) | |||
Other Assets, Fair Value Disclosure | 13.1 | |||
Other Assets | (10) | |||
Accounts Payable, Professional Fees | 26.1 | |||
Accounts Payable, Pre-Emergence Professional Fees | (12.6) | |||
Accounts Payable, Other | (0.4) | |||
Accounts Payable, Trade | 13.1 | |||
Operating Lease, Liability | (5) | |||
Accrued Liabilities, Holding Costs | (4.1) | |||
Accrued Liabilities, Restructuring Payments | (3.3) | |||
Accrued Liabilities and Other Liabilities | (12.4) | |||
Liabilities, Construction Contract Intangible Liabilities | (49.9) | |||
Liabilities, Accrued Holding Costs | (4.7) | |||
Liabilities, Lease Liabilities | (0.6) | |||
Other Liabilities, Noncurrent | (55.2) | |||
Liabilities Subject to Compromise | 7,313.7 | |||
Liabilities Subject to Compromise, Payments under Bankruptcy Court Order for Resolutions of Contingencies Subject to Chapter 11 | (129.9) | |||
Liabilities Subject to Compromise, Period Increase (Decrease) | 6,139 | |||
Settlement On Liabilities Subject To Compromise | (6,139) | |||
Issuance of Common Shares for backstop premium | 29.1 | |||
Issuance of Common Shares to the Shipyard | 5.4 | |||
Write-off of unrecognized share-based compensation expense | 16 | |||
Professional fees and success fees | 35.9 | |||
Backstop Commitment Agreement, Backstop Premium For Retained Deficit | 30 | |||
Impact of newbuild contract amendments | 350.7 | |||
Reorganization Items, Net | (5,671.9) | |||
Common shares, value | 0.8 | |||
Treasury Stock, Value | 75.5 | |||
Predecessor Additional Paid In Capital, Adjustment | (7,856.4) | |||
Equity Component Of Convertible Notes | (220) | |||
Cash And Equity Compensation Plans | (583.6) | |||
Warrants and Rights Outstanding | 16.4 | |||
Retained Earnings (Accumulated Deficit) | (14,322.6) | |||
Other | 1.5 | |||
OTHER ASSETS | (10) | |||
Property, Plant and Equipment, Net | (417.6) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Common Class A And B Shares | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Common shares, value | (82.6) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Predecessor Creditors And The Shipyard | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Liabilities Subject To Compromise, Stock Issued | (721) | |||
Reorganization, Chapter 11, Plan Effect Adjustment | Backstop Parties | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Liabilities Subject To Compromise, Stock Issued | (323.8) | |||
Reorganization, Chapter 11, Fresh-Start Adjustment | ||||
Reorganization, Chapter 11 [Line Items] | ||||
Operating Lease, Right-of-Use Asset | 0.4 | |||
Other Assets | (20.7) | |||
Accounts Payable, Trade | (36.8) | |||
Accrued Liabilities and Other Liabilities | (61.8) | |||
Liabilities, Lease Liabilities | (1.1) | |||
Other Liabilities, Noncurrent | (85.6) | |||
Liabilities Subject to Compromise | 0 | |||
Treasury Stock, Value | 0 | |||
Warrants and Rights Outstanding | 0 | |||
Retained Earnings (Accumulated Deficit) | 9,175.2 | |||
Inventory | (260.8) | |||
Other Asset, Other, Current | (20.3) | |||
Other | (281.1) | |||
Deferred Income Taxes and Other Assets, Noncurrent | 21.1 | |||
Contract with Customer, Asset, after Allowance for Credit Loss | 8.5 | |||
Deferred Contract Drilling | (16.5) | |||
Other Deferred Costs, Net | (4.6) | |||
OTHER ASSETS | 8.9 | |||
Historical Deferred Revenues | (25.9) | |||
Contract with Customer, Liability, Current | 0.5 | |||
Operating Lease, Liability, Current | 0.4 | |||
Other liabilities (long-term) | (82.7) | |||
Historical Deferred Revenues, Noncurrent | (5.9) | |||
Deferred Tax Impacts Of Certain Fresh Start Adjustments | 1.7 | |||
Other Sundry Liabilities | 0.2 | |||
Prepaid Expense and Other Assets, Current | (281.1) | |||
Property, Plant and Equipment, Net | (8,699.7) | |||
Intangible Assets, Net (Excluding Goodwill) | 8.5 | |||
Equity Method Investments | (43.4) | |||
Accounts and Financing Receivable, after Allowance for Credit Loss | (214.4) | |||
Accrued liabilities and other | 62.8 | |||
Intangible Liabilities Noncurrent | (0.5) | |||
Other Sundry Liabilities, Noncurrent | 87.3 | |||
Predecessor, Accumulated Other Comprehensive Loss | (93.4) | |||
Loss On Fresh-Start Adjustments | (9,194.6) | |||
Tax Impact Of Fresh Start Adjustments | $ 19.4 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Narrative (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Capitalized Contract Cost, Net | $ 99.6 | |||
Early Termination Fee Received | $ 51 | |||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Drilling Contracts, Term | 1 month | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Drilling Contracts, Term | 5 years | |||
Upfront Rig Mobilizations And Certain Contract Preparation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Capitalized Contract Cost, Net | $ 85.1 | $ 57.3 | ||
Capitalized Contract Cost, Amortization | $ 7.6 | $ 22 | 92.9 | 61.7 |
Deferred Certification Costs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Capitalized Contract Cost, Net | 14.5 | 16.2 | ||
Capitalized Contract Cost, Amortization | $ 3.1 | $ 0.7 | $ 12.7 | $ 4.7 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Components of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net, Current | $ 1.5 | $ 4.6 |
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent | 4.5 | 0.7 |
Contract with Customer, Liability, Current | 116.2 | 78 |
Contract with Customer, Liability, Noncurrent | 37.6 | 41 |
Change in Contract With Customer, Asset [Roll Forward] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | 5.3 | 0.3 |
Revenue from Contract with Customer, Excluding Assessed Tax | 8.4 | 9.2 |
Contract with Customer, Asset, Reclassified to Receivable | (7.7) | (4.2) |
Change in Contract With Customer, Liability [Roll Forward] | ||
Contract with Customer, Liability | 119 | 56.6 |
Contract with Customer, Liability, Revenue Recognized, Included In Beginning Balance | (73.1) | (41.1) |
Contract with Customer, Liability, Revenue Recognized, Added During Period | (46.5) | (47.1) |
Increase (Decrease) in Contract with Customer, Liability | (8.5) | (6.1) |
Contract with Customer, Liability | 153.8 | 119 |
Increase in Contract Liability due to Revenue Deferred During the Period | $ 162.9 | $ 156.7 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Future Amortization of Contract Liabilities and Deferred Costs (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred contract costs | $ 99.6 |
Revenue, Remaining Performance Obligation, Amount | 153.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capitalized Contract Cost, Amortization Expense, Next Fiscal Year | 75.3 |
Revenue, Remaining Performance Obligation, Amount | $ 116.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capitalized Contract Cost, Amortization Expense, Year Two | $ 15.9 |
Revenue, Remaining Performance Obligation, Amount | $ 24.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capitalized Contract Cost, Amortization Expense, Year Three | $ 8.1 |
Revenue, Remaining Performance Obligation, Amount | $ 12.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Capitalized Contract Cost, Amortization Expense, Year Four and Thereafter | $ 0.3 |
Revenue, Remaining Performance Obligation, Amount | $ 0.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Equity Method Investment in A_3
Equity Method Investment in ARO Equity Method Investment In ARO Narrative (Details) $ in Millions | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Apr. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) rigs | Dec. 31, 2022 USD ($) | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Total number of contract drilling rigs | 53 | |||||
Number of jackups leased by ARO | 8 | |||||
Contract terms on purchased rigs | 15 years | |||||
Order Period | 10 years | |||||
Minimum renewal contract terms for newbuild rigs | 8 years | |||||
Shareholder Notes Payable, Term | 10 years | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Basis spread on variable rate | 2.10% | |||||
ARO | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Total number of contract drilling rigs | 8 | |||||
Number of newbuild jackup rigs | 2 | |||||
ARO | Asset under Construction [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of newbuild jackup rigs | 1 | |||||
ARO | 10 years | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of newbuild jackup rigs | 20 | |||||
ARO | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment Summarized Financial Information Non Cash Interest Income | $ | $ 14.8 | |||||
Early Repayment of Principal from Joint Venture Non Current | $ | $ 40 | |||||
ARO | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Lease Revenue From Related Party | $ | $ 21.7 | $ 35.4 | $ 69.2 | $ 56.7 | ||
ARO | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% |
Equity Method Investment in A_4
Equity Method Investment in ARO Equity Method Investment In ARO - Summarized Financial Data (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
OPERATING REVENUES | $ 397.4 | $ 835 | $ 1,784.2 | $ 1,602.5 | |
Depreciation | 159.6 | 66.1 | 101.1 | 91.2 | |
General and administrative | 30.7 | 58.2 | 99.3 | 80.9 | |
OPERATING INCOME (LOSS) | (890.1) | (7.3) | 53.5 | 37.2 | |
Nonoperating Income (Expense) | (3,557.5) | 20.1 | 30.7 | 187.7 | |
Total provision for income taxes | 16.2 | 36.4 | (782.6) | 43.1 | |
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | (4,467) | (27.4) | 865.4 | 176.5 | |
ASSETS | |||||
Cash and cash equivalents | 607.6 | 620.5 | 724.1 | ||
Other | 90.5 | 177.2 | 148.6 | ||
TOTAL ASSETS | 2,595.6 | 4,322.2 | 2,860.3 | ||
Liabilities [Abstract] | |||||
Liabilities, Current | 390.6 | 744.3 | 504.4 | ||
Liabilities | 2,325.2 | 1,562.4 | |||
Total assets | 343.5 | 317.9 | |||
Investment Owned, Balance [Abstract] | |||||
EQUITY IN EARNINGS OF ARO | 3.1 | 6.1 | 13.3 | 24.5 | |
ARO | |||||
Related Party Transactions [Abstract] | |||||
Lease Revenue From Related Party | 21.7 | 35.4 | 69.2 | 56.7 | |
ARO | |||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
OPERATING REVENUES | 496.6 | 459.5 | $ 470.6 | ||
Contract drilling (exclusive of depreciation) | 365.9 | 341.8 | 362.3 | ||
Depreciation | 65.9 | 63.4 | 65.2 | ||
General and administrative | 22.2 | 18.7 | 17.8 | ||
OPERATING INCOME (LOSS) | 42.6 | 35.6 | 25.3 | ||
Nonoperating Income (Expense) | 31.8 | 11.1 | 13.4 | ||
Total provision for income taxes | 8.3 | 3.8 | 7.9 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS | 2.5 | 20.7 | $ 4 | ||
ASSETS | |||||
Cash and cash equivalents | 92.9 | 176.2 | |||
Other | 184 | 140.6 | |||
Assets, Noncurrent | 1,081 | 818.1 | |||
TOTAL ASSETS | 1,357.9 | 1,134.9 | |||
Liabilities [Abstract] | |||||
Liabilities, Current | 136 | 86.3 | |||
Liabilities, Noncurrent | 1,056.8 | 884.6 | |||
Liabilities | 1,192.8 | 970.9 | |||
ARO | Assets, Total | |||||
Liabilities [Abstract] | |||||
Total assets | 417.1 | 377.8 | |||
ARO | Liabilities, Total | |||||
Liabilities [Abstract] | |||||
Total assets | 73.6 | 59.9 | |||
ARO | |||||
Investment Owned, Balance [Abstract] | |||||
50% interest in ARO net income (loss) | 6 | (4) | 1.3 | 10.4 | |
Amortization of basis differences | (2.9) | 10.1 | 12 | 14.1 | |
EQUITY IN EARNINGS OF ARO | $ 3.1 | $ 6.1 | $ 13.3 | $ 24.5 |
Equity Method Investment in A_5
Equity Method Investment in ARO - Schedule of Related Parties (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Accounts receivable, net | $ 425.9 | $ 459.3 | $ 449.1 | |
Accounts payable - trade | 174.1 | 400.1 | 256.5 | |
Accretion of discount on notes receivable from ARO | 0 | $ 20.8 | 28.3 | 44.9 |
ARO | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Accounts receivable, net | 10.2 | 12 | ||
Contract liabilities(2) | 15.9 | 16.7 | ||
Accounts payable - trade | 57.7 | 43.2 | ||
Principal amount | 402.7 | 402.7 | ||
Discount | (120.4) | (148.7) | ||
Carrying value | 282.3 | 254 | ||
Interest income | 3.5 | 7 | 30.5 | 11.3 |
Accretion of discount on notes receivable from ARO | 0 | 20.8 | 28.3 | 44.9 |
Interest income | $ 3.5 | $ 27.8 | $ 58.8 | $ 56.2 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | $ 544.8 | ||
LONG-TERM NOTES RECEIVABLE FROM ARO | $ 282.3 | $ 254 | $ 228.3 |
Senior Secured Second Lien Notes | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Debt instrument interest rate stated percentage | 8.375% | ||
Reported Value Measurement [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | $ 282.3 | 254 | |
Reported Value Measurement [Member] | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | 1,079.3 | 542.4 | |
Reported Value Measurement [Member] | Senior Secured Second Lien Notes | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | 1,079.3 | 0 | |
Reported Value Measurement [Member] | Senior Secured First Lien Notes | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | 0 | 542.4 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
LONG-TERM NOTES RECEIVABLE FROM ARO | 423.5 | 336.7 | |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | 1,126.1 | 545.9 | |
Estimate of Fair Value Measurement [Member] | Senior Secured Second Lien Notes | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | 1,126.1 | 0 | |
Estimate of Fair Value Measurement [Member] | Senior Secured First Lien Notes | Senior Notes [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Long-term Debt | $ 0 | $ 545.9 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,889 | $ 1,134.5 |
Work in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 537 | 59.8 |
Other Capitalized Property Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 39.5 | 38.2 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,312.5 | $ 1,036.5 |
Equipment [Member] | Floaters [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 337 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Jun. 30, 2022 | Mar. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||||
Loss on impairment | $ 34.5 | $ 5.6 | $ 756.5 | $ 0 | $ 0 | $ 34.5 | |
PROPERTY AND EQUIPMENT, AT COST | 1,889 | 1,134.5 | |||||
V54 | Operating Segments [Member] | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | $ 27.3 | ||||||
V113 & V114 | Operating Segments [Member] | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | 130.5 | ||||||
V100 | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | 3.2 | ||||||
V68 | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | $ 7 | ||||||
V22, V37, V100 and V142 | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | $ 20.7 | ||||||
V101 | Jackups Member | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gain (Loss) on Disposition of Other Assets | $ 5.3 | ||||||
Floaters [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Loss on impairment | 756.5 | ||||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 26 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Aug. 21, 2023 | May 03, 2023 | Apr. 19, 2023 | Apr. 03, 2023 | Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Extinguishment of Debt [Line Items] | |||||||||
Repayments of Long-term Debt | $ 0 | $ 0 | $ 571,800,000 | $ 0 | |||||
Loss on extinguishment of debt | 0 | $ 0 | 29,200,000 | 0 | |||||
Revolving Credit Facility [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 375,000,000 | ||||||||
Line of Credit Facility, Additional Borrowing Capacity | 200,000,000 | ||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | ||||||||
Revolving Credit Facility [Member] | Letter of Credit | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Line of Credit Facility, Additional Borrowing Capacity | $ 150,000,000 | ||||||||
Federal Fund Rate Plus One Half Member | Revolving Credit Facility [Member] | Federal Funds Rate | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
Maximum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Covenant, Restricted Cash | $ 175,000,000 | 175,000,000 | |||||||
Maximum | Revolving Credit Facility [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | ||||||||
Maximum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Standards & Poor's Financial Services LLC | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 3% | ||||||||
Maximum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Moody's Investors Service, Inc. | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 4% | ||||||||
Maximum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 0.10% | ||||||||
Maximum | Term SOFR Plus One and One Tenth Member | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 1.10% | ||||||||
Minimum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Covenant, Restricted Cash | 100,000,000 | 100,000,000 | |||||||
Minimum | Revolving Credit Facility [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | ||||||||
Minimum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Standards & Poor's Financial Services LLC | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Minimum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Moody's Investors Service, Inc. | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Minimum | Term SOFR Plus One Tenth Member | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 0% | ||||||||
Minimum | Floor for Term SOFR and One and One Tenth Member | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
First Lien Notes | Senior Notes [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 | |||||||
DebtInstrumentInterestRateAnnualPaymentPercent | 10.25% | ||||||||
DebtInstrumentRedemptionPricePercentOfNetCashProceedsFromEquityOffering | 104% | ||||||||
Debt Instrument, Consent Solicitation Costs | $ 3,900,000 | ||||||||
Repayments of Long-term Debt | $ 571,800,000 | ||||||||
Loss on extinguishment of debt | $ 29,200,000 | ||||||||
First Lien Notes | Senior Notes [Member] | Debt Instrument Interest Rate Payout Option One Member | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
DebtInstrumentInterestRateAnnualPaymentPercent | 8.25% | ||||||||
First Lien Notes | Senior Notes [Member] | Debt Instrument Interest Rate Payout Option Two Member | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
DebtInstrumentAnnualInterestPayoutPercentInCash | 5,000% | ||||||||
DebtInstrumentAnnualInterestPayoutPercentPaidInKind | 50% | ||||||||
DebtInstrumentInterestRateAnnualPaymentPercentPaidInKind | 12% | ||||||||
Senior Notes [Member] | First Lien Notes | Maximum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Covenant, Investment Maximum | $ 175,000,000 | $ 175,000,000 | |||||||
Debt Instrument, Covenant, Investment Maximum, Percent Of Total Assets | 6.50% | 6.50% | |||||||
Senior Notes [Member] | First Lien Notes | Minimum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Covenant, Investment Maximum | $ 100,000,000 | $ 100,000,000 | |||||||
Debt Instrument, Covenant, Investment Maximum, Percent Of Total Assets | 4% | 4% | |||||||
Initial Second Lien Notes | Senior Notes [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 700,000,000 | ||||||||
Proceeds from Issuance of Debt | $ 681,400,000 | ||||||||
Debt Instrument, Triggering Event, Redemption Price Percentage | 101% | ||||||||
Initial Second Lien Notes | Senior Notes [Member] | Debt Instrument Principle Percentage Redemption, Three | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||||||
Additional Second Lien Notes | Senior Notes [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 400,000,000 | ||||||||
Proceeds from Issuance of Debt | $ 396,900,000 | ||||||||
Debt Instrument, Issued, Percentage of Par | 100.75% | ||||||||
Debt Instrument, Increase, Accrued Interest | $ 11,400,000 | ||||||||
Second Lien Notes | Senior Notes [Member] | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt instrument interest rate stated percentage | 837.50% | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.76% | ||||||||
Second Lien Notes | Senior Notes [Member] | Federal Fund Rate Plus One Half Member | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Principle redemption | 40% | ||||||||
Debt Instrument, Redemption Price, Percentage | 108.375% | ||||||||
Second Lien Notes | Senior Notes [Member] | Term SOFR Plus One Tenth Member | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Principle redemption | 10% | ||||||||
Debt Instrument, Redemption Price, Percentage | 103% | ||||||||
Second Lien Notes | Senior Notes [Member] | Debt Instrument, Redemption, Period One | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 104.188% | ||||||||
Second Lien Notes | Senior Notes [Member] | Debt Instrument, Redemption, Period Three | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||||||
Reorganization, Chapter 11, Plan Effect Adjustment | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | |||||||
Debt Issuance Costs, Net | (5,200,000) | $ (5,200,000) | |||||||
Proceeds from Issuance of Debt | $ 500,000,000 |
Debt Instrument Redemption (Det
Debt Instrument Redemption (Details) - Second Lien Notes - Senior Notes [Member] | Apr. 19, 2023 |
Debt Instrument, Redemption, Period One | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 104.188% |
Debt Instrument, Redemption, Period Two | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.094% |
Debt Instrument, Redemption, Period Three | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $132.9 million for the four months ended April 30, 2021) | $ 2.4 | $ 31 | $ 68.9 | $ 45.3 |
Interest Costs Capitalized | $ 0 | 0 | 5.6 | 1.2 |
Amortization of Debt Discount (Premium) | $ 0.5 | $ 5 | $ 1 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Activity In Our Various Shareholders' Equity) (Details) - USD ($) shares in Millions, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | $ 1,094.8 | $ 1,297.9 | |||
Net income (loss) | $ (4,463.8) | (23.6) | 866.8 | $ 181.8 | |
Share-based compensation cost | (4.3) | (27.3) | (17.4) | ||
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (0.1) | 9.1 | (10.8) | (23.8) | |
Net other comprehensive income (loss) | (5.5) | $ (9.1) | 10.5 | 23.8 | |
Stock Issued During Period, Shares, New Issues | 75 | ||||
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation | (5.4) | (2.5) | |||
Treasury Stock, Value, Acquired, Cost Method | 200 | ||||
BALANCE | $ 1,094.8 | $ 1,094.8 | $ 1,997 | $ 1,297.9 | |
Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE, shares | 206.1 | 75 | 75.2 | 75 | |
BALANCE | $ 82.6 | $ 0.8 | $ 0.8 | $ 0.8 | |
Stock Issued During Period, Value, New Issues | (0.8) | ||||
Shares Issued Under Share Based Compensation Plans, Shares | 0.2 | 0.2 | |||
Cancellation Of Predecessor Equity, Shares | (206.1) | ||||
Cancellation Of Predecessor Equity, Value | $ (82.6) | ||||
Stock Issued During Period, Shares, New Issues | (75) | ||||
BALANCE, shares | 75 | 75 | 75 | 75.4 | 75.2 |
BALANCE | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.8 |
Additional Paid-In Capital [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | 8,639.9 | 1,078.7 | 1,097.9 | 1,083 | |
Stock Issued During Period, Value, New Issues | (1,078.7) | ||||
Share-based compensation cost | 4.8 | ||||
Shares Issued Under Share Based Compensation Plans, Amount | (0.7) | ||||
Cancellation Of Predecessor Equity, Value | (8,644) | ||||
BALANCE | 1,078.7 | 1,078.7 | 1,083 | 1,119.8 | 1,097.9 |
Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | (4,183.8) | 0 | 160.1 | (16.4) | |
Net income (loss) | (4,467) | (27.4) | 865.4 | 176.5 | |
Cancellation Of Predecessor Equity, Value | 8,650.8 | ||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (11) | ||||
BALANCE | 0 | 0 | (16.4) | 1,025.5 | 160.1 |
AOCI [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | (87.9) | 0 | 14.7 | (9.1) | |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | 0.1 | (9.1) | 10.8 | 23.8 | |
Net other comprehensive income (loss) | (5.6) | (0.3) | |||
Cancellation Of Predecessor Equity, Value | 93.4 | ||||
BALANCE | 0 | 0 | (9.1) | 25.2 | 14.7 |
Noncontrolling Interest [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | (4.3) | (1.1) | 8 | 2.7 | |
Net income (loss) | 3.2 | 3.8 | 1.4 | 5.3 | |
BALANCE | (1.1) | (1.1) | 2.7 | 9.4 | 8 |
Warrant | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | 0 | 16.4 | 16.4 | 16.4 | |
Stock Issued During Period, Value, New Issues | (16.4) | ||||
BALANCE | 16.4 | 16.4 | 16.4 | 16.4 | 16.4 |
Treasury Stock, Common | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
BALANCE | (76.2) | 0 | 0 | 0 | |
Shares Issued Under Share Based Compensation Plans, Amount | (0.7) | ||||
Cancellation Of Predecessor Equity, Value | 75.5 | ||||
Treasury Stock, Value, Acquired, Cost Method | (200.1) | ||||
BALANCE | $ 0 | $ 0 | $ 0 | $ (200.1) | $ 0 |
Shareholders' Equity Narrative
Shareholders' Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 01, 2024 | Apr. 27, 2023 | Apr. 30, 2021 | |
Shareholders' Equity Note [Abstract] | ||||||
Common shares, shares issued | 75,400,000 | 75,200,000 | 75,000,000 | |||
Class of Warrant or Right, Outstanding | 5,470,950 | 5,600,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 131.88 | |||||
Warranted, Period Exercisable | 7 years | |||||
Common Stock, Shares Authorized | 700,000,000 | 700,000,000 | 700,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 14.39 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||
Capital Units, Authorized | 8,500,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 200 | |||||
Shares Acquired, Average Cost Per Share | $ 66.77 | |||||
Treasury Stock, Shares, Acquired | 3,000,000 | 0 | ||||
Stock Repurchase Program, Authorized Amount | $ 300 | |||||
Weighted Average Number of Shares, Common Stock Subject to Repurchase or Cancellation | 100,000,000 | |||||
Stock Repurchase Program, Authorized Amount | $ 300 | |||||
Forecast [Member] | ||||||
Shareholders' Equity Note [Abstract] | ||||||
Stock Repurchase Program, Authorized Amount | $ 600 | |||||
Stock Repurchase Program, Authorized Amount | $ 600 |
Share Based Compensation (Narra
Share Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 0.7 | $ 11.7 | $ 6.7 | |
Share options award, outstanding | 313,377 | |||
Operating Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 4.8 | 3.6 | 15.8 | 10.7 |
Contract Drilling [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | 2.4 | 1.6 | 6.8 | 3.9 |
General And Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 2.4 | $ 2 | $ 9 | $ 6.8 |
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 319,641 | |||
Performance Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation cost, weighted-average period, years | 1 year 2 months 12 days | |||
Share option awards, exercisable, increment | 3 years | |||
Unrecognized compensation cost on awards | $ 10.1 | |||
Granted (in dollars per share) | $ 15.93 | $ 62.09 | $ 38.08 | |
Non Vested Share Awards, Equity Classified [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation cost, weighted-average period, years | 1 year 3 months 18 days | |||
Unrecognized compensation cost on awards | $ 23.2 | |||
Minimum | Predecessor time-based share and cash settled awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33% | |||
Management Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6,800,000 | |||
Management Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Awards, Performance Targets | 200% | 150% | ||
Management Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Awards, Performance Targets | 0% | |||
Non Vested Share Awards, Equity Classified [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in dollars per share) | $ 26.07 | $ 63.22 | $ 45.39 | |
Vested (in shares) | 366,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 758,000,000 | 861,000,000 |
Share Based Compensation (Summa
Share Based Compensation (Summary Of Non-Vested Share Award Related Compensation Expense Recognized) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Non-vested share award related compensation expense | $ 0.7 | $ 11.7 | $ 6.7 | |
Tax benefit | (0.2) | (1.6) | (0.9) | |
Total non-vested share award related compensation expense included in net income | 3.4 | 14.2 | 9.8 | |
Contract Drilling [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Non-vested share award related compensation expense | $ 2.4 | 1.6 | 6.8 | 3.9 |
General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Non-vested share award related compensation expense | 2.4 | 2 | 9 | 6.8 |
Operating Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Non-vested share award related compensation expense | $ 4.8 | $ 3.6 | $ 15.8 | $ 10.7 |
Share Based Compensation (Sum_2
Share Based Compensation (Summary Of Value Of Non-Vested Share Awards Granted And Vested) (Details) - Non Vested Share Awards, Equity Classified [Member] - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 26.07 | $ 63.22 | $ 45.39 |
Total fair value of non-vested share awards vested during the period (in millions) | $ 0 | $ 25,200 | $ 12,800 |
Share Based Compensation (Sum_3
Share Based Compensation (Summary Of Non-Vested Share Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Non Vested Share Awards, Equity Classified [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 861,000,000 | ||
Granted (in shares) | 295,000,000 | ||
Vested (in shares) | 366,000,000 | ||
Forfeited (in shares) | 32,000,000 | ||
Ending balance (in shares) | 758,000,000 | 861,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 33.54 | ||
Granted (in dollars per share) | $ 26.07 | 63.22 | $ 45.39 |
Vested (in dollars per share) | 32.89 | ||
Forfeited (in dollars per share) | 36.68 | ||
Ending balance (in dollars per share) | $ 45.29 | $ 33.54 | |
Total fair value of non-vested share awards vested during the period (in millions) | $ 0 | $ 25,200 | $ 12,800 |
Non Vested Share Awards, Equity Classified [Member] | Time-based Share Awards, Deferred For Delivery | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested (in shares) | 65,882 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Vested (in dollars per share) | $ 35.40 | ||
Recognized compensation cost, weighted-average period, years | 7 months 6 days | ||
Total fair value of non-vested share awards vested during the period (in millions) | $ 4,500 | ||
Performance Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 767,000 | ||
Granted (in shares) | 127,000 | ||
Ending balance (in shares) | 894,000 | 767,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 21.77 | ||
Ending balance (in dollars per share) | $ 27.49 | $ 21.77 | |
Performance Based Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 0 | ||
Performance Based Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 239,000 | ||
Market-Based Objectives | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 98,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted (in dollars per share) | $ 59.28 | ||
Performance-Based Objectives | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 29,000 | ||
Ending balance (in shares) | 29,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 71.63 | ||
Ending balance (in dollars per share) | $ 71.63 |
Share Based Compensation (Sum_4
Share Based Compensation (Summary of Purchase Plan Valuation Assumptions) (Details) | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected price volatility | 61% | 60% | 61% |
Expected dividend yield | 0% | 0% | 0% |
Risk-free interest rate | 0.73% | 4.32% | 3.49% |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits Pension Narrative (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jan. 01, 2023 | Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net benefit liabilities | $ 146.3 | $ 164.6 | |||||
Net projected benefit obligations, current | $ 4.7 | $ 4.8 | |||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.03% | 6.03% | 6.03% | 7.10% | 6.26% | ||
Liability, Defined Benefit Plan, Noncurrent | $ 141.6 | $ 159.8 | |||||
Employer contributions | 5.9 | 3.5 | |||||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ 12.1 | $ 24.7 | 31.4 | 38.3 | |||
Defined Benefit Plan, Plan Assets, Amount | 634.6 | 471.2 | 458.5 | ||||
Interest cost | $ 6.6 | 15.6 | 31.2 | 22.4 | |||
Defined Contribution Plan, Cost | $ 8 | $ 4.7 | |||||
Forecast [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Plan Assets, Amount | $ 1.2 | ||||||
Savings Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employee match | 100% | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5% | 4% | |||||
Maximum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.88% | ||||||
Minimum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.10% | ||||||
Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net benefit liabilities | $ 135.3 | $ 153 | |||||
Net projected benefit obligations, current | 3.6 | 3.7 | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 23.7 | ||||||
Liability, Defined Benefit Plan, Noncurrent | 131.7 | 149.3 | |||||
Employer contributions | 5.9 | 3.5 | |||||
Defined Benefit Plan, Plan Assets, Amount | $ 634.6 | 471.2 | 458.5 | ||||
Interest cost | $ 30.6 | $ 22 |
Pension and Other Post-retire_3
Pension and Other Post-retirement Benefits Changes in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Projected benefit obligation: | ||||
BALANCE at the beginning of the period | $ 623.1 | $ 843.5 | ||
Interest cost | $ 6.6 | $ 15.6 | 31.2 | 22.4 |
Actuarial loss (gain) | 5.7 | (194.8) | ||
Plan settlements | 0 | (1.4) | ||
Benefits paid | (42.5) | (46.6) | ||
BALANCE at the end of the period | 843.5 | 617.5 | 623.1 | |
Plan assets | ||||
Fair value, at the beginning of the period | 458.5 | 634.6 | ||
Actual return | 48.5 | (132.2) | ||
Employer contributions | 5.9 | 3.5 | ||
Foreign currency adjustments | 41.7 | 46 | ||
Fair value, at the end of the period | 634.6 | 471.2 | 458.5 | |
Accumulated contributions less than net periodic benefit cost | (171.8) | (179.3) | ||
Amounts recognized in Consolidated Balance Sheet: | ||||
Accrued liabilities | (4.7) | (4.8) | ||
Other liabilities (long-term) | (141.6) | (159.8) | ||
Net benefit liabilities | (146.3) | (164.6) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||
Actuarial loss | 25.7 | 14.9 | ||
Prior service cost | (0.2) | (0.2) | ||
Total accumulated other comprehensive income | $ 25.5 | $ 14.7 | ||
Weighted-average assumptions: | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.81% | |||
Cash balance interest credit rate | 3.26% | 3.23% | ||
Pension Plan [Member] | ||||
Projected benefit obligation: | ||||
BALANCE at the beginning of the period | $ 611.5 | $ 827.9 | ||
Interest cost | 30.6 | 22 | ||
Actuarial loss (gain) | 6.1 | (191) | ||
Plan settlements | 0 | (1.4) | ||
Benefits paid | (41.7) | (46) | ||
BALANCE at the end of the period | 827.9 | 606.5 | 611.5 | |
Plan assets | ||||
Fair value, at the beginning of the period | 458.5 | 634.6 | ||
Actual return | 48.5 | (132.2) | ||
Employer contributions | 5.9 | 3.5 | ||
Foreign currency adjustments | 41.7 | 46 | ||
Fair value, at the end of the period | 634.6 | 471.2 | 458.5 | |
Accumulated contributions less than net periodic benefit cost | (152.9) | (159.8) | ||
Amounts recognized in Consolidated Balance Sheet: | ||||
Accrued liabilities | (3.6) | (3.7) | ||
Other liabilities (long-term) | (131.7) | (149.3) | ||
Net benefit liabilities | (135.3) | (153) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||
Actuarial loss | 17.8 | 7 | ||
Prior service cost | (0.2) | (0.2) | ||
Total accumulated other comprehensive income | $ 17.6 | $ 6.8 | ||
Weighted-average assumptions: | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.97% | 5.21% | ||
Other Postretirement Benefits Plans And Supplemental Employee Retirement Plans [Member] | ||||
Projected benefit obligation: | ||||
BALANCE at the beginning of the period | $ 11.6 | $ 15.6 | ||
Interest cost | 0.6 | 0.4 | ||
Actuarial loss (gain) | (0.4) | (3.8) | ||
Plan settlements | 0 | 0 | ||
Benefits paid | (0.8) | (0.6) | ||
BALANCE at the end of the period | 15.6 | 11 | 11.6 | |
Plan assets | ||||
Fair value, at the beginning of the period | 0 | 0 | ||
Actual return | 0 | 0 | ||
Employer contributions | 0 | 0 | ||
Foreign currency adjustments | 0 | 0 | ||
Fair value, at the end of the period | $ 0 | 0 | 0 | |
Accumulated contributions less than net periodic benefit cost | (18.9) | (19.5) | ||
Amounts recognized in Consolidated Balance Sheet: | ||||
Accrued liabilities | (1.1) | (1.1) | ||
Other liabilities (long-term) | (9.9) | (10.5) | ||
Net benefit liabilities | (11) | (11.6) | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||
Actuarial loss | 7.9 | 7.9 | ||
Prior service cost | 0 | 0 | ||
Total accumulated other comprehensive income | $ 7.9 | $ 7.9 | ||
Weighted-average assumptions: | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5% | 5.30% |
Pension and Other Post-retire_4
Pension and Other Post-retirement Benefits Accumulated Benefit Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 617.5 | $ 623.1 |
Pension and Other Post-retire_5
Pension and Other Post-retirement Benefits Net Periodic Pension Costs and Weighted Average Assumptions (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 6.6 | $ 15.6 | $ 31.2 | $ 22.4 | |
Expected return on plan assets | (12.1) | (24.7) | (31.4) | (38.3) | |
Settlement (gain) loss recognized (1) | 0 | 0.4 | 0 | (0.4) | |
Amortization of net (gain) loss | 0.1 | 0 | (0.7) | (0.1) | |
Net periodic pension costs | $ (5.4) | $ (8.7) | $ (0.9) | $ (16.4) | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.03% | 6.03% | 6.03% | 7.10% | 6.26% |
Cash balance interest credit rate | 2.94% | 2.94% | 3.23% | 3.05% | |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 30.6 | $ 22 | |||
Discount rate | 2.30% | 2.84% | 5.21% | 2.73% |
Pension and Other Post-retire_6
Pension and Other Post-retirement Benefits Schedule of Allocation of Plan Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | $ 471,200,000 | $ 458,500,000 | $ 634,600,000 |
Defined Benefit Plan, Equity Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 23.90% | ||
Defined Benefit Plan, Equity Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 33.90% | ||
Defined Benefit Plan Equity Securities Global Low | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 3.40% | ||
Defined Benefit Plan Equity Securities Global Low | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 13.40% | ||
Defined Benefit Plan, Non Equity Securities | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 19.70% | ||
Defined Benefit Plan, Non Equity Securities | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 29.70% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | $ 471,200,000 | 458,500,000 | $ 634,600,000 |
Pension Benefits | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 471,200,000 | ||
Pension Benefits | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 458,500,000 | ||
Pension Benefits | Defined Benefit Plan, Equity Securities, US, Large Cap [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 105,500,000 | 99,400,000 | |
Pension Benefits | Defined Benefit Plan, Equity Securities, US, Small Cap [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 28,700,000 | 25,400,000 | |
Pension Benefits | Defined Benefit Plan, Equity Securities, Non-US, All Cap [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 51,300,000 | 50,700,000 | |
Pension Benefits | Defined Benefit Plan, Equity Securities, Non-US Small Cap [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 23,100,000 | 22,400,000 | |
Pension Benefits | Emerging markets | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | $ 39,300,000 | 39,700,000 | |
Pension Benefits | Defined Benefit Plan, Real Estate [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 3% | ||
Pension Benefits | Defined Benefit Plan, Real Estate [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 13% | ||
Pension Benefits | Defined Benefit Plan, Real Estate [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | $ 40,400,000 | 49,000,000 | |
Pension Benefits | Defined Benefit Plan, Fixed Income Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 25% | ||
Pension Benefits | Defined Benefit Plan, Fixed Income Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target range (1) | 35% | ||
Pension Benefits | Defined Benefit Plan, Cash and Cash Equivalents [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets Target Allocation | $ 0 | ||
Pension Benefits | Defined Benefit Plan, Cash and Cash Equivalents [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets Target Allocation | 5 | ||
Pension Benefits | Defined Benefit Plan, Cash and Cash Equivalents [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 4,800,000 | 4,900,000 | |
Pension Benefits | Defined Benefit Plan, Aggregate Securities [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 46,600,000 | 45,300,000 | |
Pension Benefits | Defined Benefit Plans, Aggregate Securities, Core Plus [Member] | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | 93,000,000 | 83,700,000 | |
Pension Benefits | Defined Benefit Plan Equity Securities Global Low | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assets | $ 38,500,000 | $ 38,000,000 |
Pension and Other Post-retire_7
Pension and Other Post-retirement Benefits Estimated Future Annual Benefit Payments From Plan Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 42.4 |
2021 | 41.2 |
2022 | 40.7 |
2023 | 40.4 |
2024 | 40.1 |
2029 through 2033 | 193 |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 1.2 |
2021 | 1 |
2022 | 0.9 |
2023 | 0.9 |
2024 | 0.8 |
2029 through 2033 | $ 3.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) € in Millions, $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||
Feb. 29, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Sep. 30, 2019 USD ($) | Sep. 30, 2019 AUD ($) | Apr. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 AUD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2020 USD ($) | |
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Income from continuing operations before income taxes in the U.S. countries | $ 373.1 | $ 253.4 | $ 30.7 | $ 39.7 | |||||||||
Income from continuing operations before income taxes in the non-U.S. countries | (4,800) | 240.6 | (53.5) | (185.2) | |||||||||
Deferred tax assets related to net operating loss carryforwards | $ 3,308.9 | 3,308.9 | 3,028.7 | ||||||||||
Net operating loss carryforwards | 14,200 | 14,200 | |||||||||||
Operating Loss Carryforwards, Limitations on Use | 123.4 | 123.4 | |||||||||||
Operating loss carryforwards, Not subject to expiration | 13,200 | 13,200 | |||||||||||
Operating loss carryforwards, Subject to expiration | 1,000 | 1,000 | |||||||||||
Income Tax Expense (Benefit), Discrete Item | $ 2.2 | $ 14.3 | $ 42 | $ 10.3 | |||||||||
Consilidated effective income tax rate excluding discrete items | (12.90%) | 213.90% | (872.30%) | (872.30%) | 73.60% | ||||||||
Total unrecognized tax benefits | 201.4 | $ 235.4 | $ 235.1 | $ 201.4 | $ 217.6 | $ 237.7 | |||||||
Amount of unrecognized tax benefits affecting the consolidated effective income tax rate if recognized | 171.2 | 171.2 | |||||||||||
Income tax benefits, inclusive of interest and penalties due to lapses in statute of limitations | 77.3 | 0.2 | 17.9 | 77.3 | 4.5 | ||||||||
Deferred Tax Assets, Gross | 881.7 | 881.7 | 88.6 | ||||||||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 4.5 | 3.4 | 1 | |||||||||
Effective Income Tax Rate Reconciliation, Switzerland Tax Reform, Amount | 15.4 | ||||||||||||
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | 21.5 | 29.7 | 17.2 | ||||||||||
Income Tax Benefit, Fresh Start Accounting Adjustments | 19.3 | ||||||||||||
Deferred Income Taxes and Tax Credits | 799.5 | 802.9 | 9.8 | ||||||||||
Deferred Tax Expense | 1.5 | ||||||||||||
Interest limitation carryforwards | 123.4 | 123.4 | 193.4 | ||||||||||
Total provision for income taxes | 16.2 | 36.4 | (782.6) | 43.1 | |||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 275 | ||||||||||||
Deferred Tax Assets, Valuation Allowance | 4,192.4 | 4,192.4 | 4,720.3 | ||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 224 | 224 | 275 | ||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 13.5 | $ 20.3 | 35.4 | 12.5 | |||||||||
Undistributed Earnings of Foreign Subsidiaries | 298.2 | 298.2 | |||||||||||
Amount of accrued interest and penalties included in other liabilities | 52.3 | 52.3 | 87.8 | ||||||||||
Rowan Companies [Member] | LUXEMBOURG | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Net operating loss carryforwards | 2,400 | 2,400 | |||||||||||
Rowan Companies [Member] | United States [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Net operating loss carryforwards | 607.5 | 607.5 | |||||||||||
Rowan Companies [Member] | SWITZERLAND | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Net operating loss carryforwards | 88.6 | 88.6 | |||||||||||
Rowan Companies [Member] | United Kingdom [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Net operating loss carryforwards | 78 | $ 78 | |||||||||||
Maximum | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Deferred Tax Assets, Foreign, Expiration Date | 2026 | 2026 | |||||||||||
Operating loss carryforwards tax credits expiration year | 2040 | 2040 | |||||||||||
Interest limitation carryforwards | 0.5 | $ 0.5 | |||||||||||
Other Liabilities [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Total unrecognized tax benefits | 171.7 | 171.7 | 187.2 | ||||||||||
Other Noncurrent Assets [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Total unrecognized tax benefits | 0.2 | ||||||||||||
Other Current Assets [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Total unrecognized tax benefits | 29.7 | 29.7 | $ 30.2 | ||||||||||
Australian Taxation Office [Member] | Rowan Companies [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Unrecognized tax benefit, maximum exposure | $ 29 | $ 69 | |||||||||||
Tax Assessment Liability | 18.8 | 18.8 | |||||||||||
Tax Assessment | $ 42 | $ 101 | |||||||||||
Luxembourg Taxation Office | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Unrecognized tax benefit, maximum exposure | 127 | ||||||||||||
Tax Assessment Liability | $ 66 | $ 66 | € 60 | ||||||||||
Tax Assessment | € | € 115 | ||||||||||||
Luxembourg Taxation Office | Forecast [Member] | |||||||||||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||||||||||
Income Tax Credits and Adjustments | € | € 60 | ||||||||||||
Revision of Tax Assessment | € | € 55 |
Income Taxes (Summary Of Compon
Income Taxes (Summary Of Components Of Provision For Income Taxes From Continuing Operations) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current income tax expense, U.S. | $ 0 | $ 5.5 | $ (30.3) | $ 12.4 |
Current income tax expense, Non-U.S. | 34.4 | 52.2 | 34.1 | 22.8 |
Current Income Tax Expense, Total | 34.4 | 57.7 | 3.8 | 35.2 |
Deferred income tax expense (benefit), U.S. | 0 | (6.6) | 1.9 | 8.5 |
Deferred income tax expense (benefit), Non-U.S. | (18.2) | (14.7) | (788.3) | (0.6) |
Deferred income tax expense | (18.2) | (21.3) | (786.4) | 7.9 |
Total provision for income taxes | $ 16.2 | $ 36.4 | $ (782.6) | $ 43.1 |
Income Taxes (Summary Of Signif
Income Taxes (Summary Of Significant Components Of Deferred Income Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Net operating loss carryforwards | $ 3,308.9 | $ 3,028.7 |
Property and equipment | 1,535.1 | 1,454.8 |
Interest limitation carryforwards | 123.4 | 193.4 |
Employee benefits, including share-based compensation | 41.6 | 43.1 |
Foreign tax credits | 44.7 | 60.7 |
Premiums on long-term debt | 6 | 8.1 |
Other | 14.4 | 20.1 |
Valuation allowance | (4,192.4) | (4,720.3) |
Total deferred tax assets | 881.7 | 88.6 |
Deferred tax liabilities | 26.8 | 19.4 |
Deferred Tax Assets, Net | $ 854.9 | $ 69.2 |
Income Taxes (Summary Of Effect
Income Taxes (Summary Of Effective Income Tax Rate On Continuing Operations) (Details) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Bermuda (Successor)/ U.K. (Predecessor) statutory income tax rate | 19% | 0% | 0% | 0% |
Non-Bermuda (Successor) taxes | 0% | (376.00%) | (74.00%) | (22.80%) |
Valuation allowance | (1.80%) | (119.50%) | (953.60%) | 0.60% |
Resolution of prior year items | (0.40%) | 216.20% | (49.90%) | (7.00%) |
Switzerland Tax Reform | 0% | (188.30%) | 0% | 0% |
Asset impairments | (3.20%) | 0% | 0% | 0% |
Other | (14.00%) | 0% | 0% | 2.80% |
Effective income tax rate | (0.40%) | 284.40% | (929.50%) | 19.20% |
Income Taxes (Summary Of Reconc
Income Taxes (Summary Of Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Balance, beginning of year | $ 237.7 | $ 235.4 | $ 217.6 | $ 235.1 |
Decreases in unrecognized tax benefits as a result of tax positions taken during prior years | 0 | (4.5) | (3.4) | (1) |
Increases in unrecognized tax benefits as a result of tax positions taken during prior years | 2.9 | 34.6 | 88.6 | 3 |
Lapse of applicable statutes of limitations | (0.2) | (20.2) | (73.6) | (4.5) |
Increases in unrecognized tax benefits as a result of tax positions taken during the current year | 12.6 | 6.9 | 13.4 | 11.2 |
Impact of foreign currency exchange rates | (17.6) | (10.5) | 0.6 | (9.7) |
Settlements with taxing authorities | 0 | (6.6) | (41.8) | (16.5) |
Balance, end of year | $ 235.4 | $ 235.1 | $ 201.4 | $ 217.6 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) R$ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 BRL (R$) | Dec. 31, 2019 USD ($) | Dec. 31, 2020 | Dec. 31, 2023 USD ($) jackup | Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Order Period | 10 years | ||||||
PercentageOfDownPaymentPaidForARONewbuilds | 2,500% | ||||||
ARO Rigs Under Construction | jackup | 2 | ||||||
Maximum contingent contributions to joint venture | $ 1,250 | ||||||
Letters of Credit Outstanding, Amount | 128.8 | ||||||
Deposit Liabilities, Collateral Issued, Financial Instruments | 12.6 | $ 24.4 | |||||
Cost of ARO newbuild jackups, each | $ 250 | ||||||
Loss Contingency, Damages Sought, Value | $ 124 | R$ 601.0 | |||||
Litigation Settlement, Amount Awarded from Other Party | $ 200 | ||||||
Senior Notes [Member] | Newbuild Funding Obligation | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Debt Instrument, Face Amount | $ 359 | ||||||
Senior Notes [Member] | Newbuild Funding Obligation | ARO | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long Term Pecentage of Periodic Payment Terms Balloon Payment To Be Paid | 50% | ||||||
Debt Instrument, Term | 8 years | ||||||
Senior Notes [Member] | Newbuild Funding Obligation | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long-Term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.25% | ||||||
Senior Notes [Member] | Newbuild Funding Obligation | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Long-Term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.40% |
Leases Lease Narrative (Details
Leases Lease Narrative (Details) | Dec. 31, 2023 |
Minimum | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 month |
Maximum | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 8 years |
Leases Lease Components of Leas
Leases Lease Components of Lease Expense (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||||
Long-term operating lease cost | $ 9.1 | $ 12.9 | $ 24.6 | $ 13.4 |
Short-term operating lease cost | 6.3 | 14.3 | 13.2 | 15.2 |
Variable Lease, Cost | 0.7 | 1 | 11.3 | 1 |
Lease, Cost | $ 16.1 | $ 28.2 | $ 49.1 | $ 29.6 |
Leases Leases Supplemental Bala
Leases Leases Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||||
Operating Lease, Right-of-Use Asset | $ 74.6 | $ 21 | ||
Current lease liability | $ 27.2 | $ 9.4 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities and other | Accrued liabilities and other | ||
Long-term lease liability | $ 48.9 | $ 13.8 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | ||
Total operating lease liabilities | $ 76.1 | $ 23.2 | ||
Weighted-average remaining lease term (in years) | 3 years 7 months 6 days | 5 years | ||
Weighted-average discount rate (1) | 8.21% | 7.48% | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | OTHER ASSETS | OTHER ASSETS | ||
ROU assets obtained in exchange for operating lease liabilities | $ 5.5 | $ 0.9 | $ 80.3 | $ 14.7 |
Cash paid for amounts included in the measurement of our operating lease liabilities | $ 7.1 | $ 11.7 | $ 26.2 | $ 14 |
Leases Leases Maturities of Lea
Leases Leases Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 32.4 | |
2025 | 20.5 | |
2026 | 19.1 | |
2027 | 10 | |
2028 | 2.4 | |
Thereafter | 3.7 | |
Total lease payments | 88.1 | |
Less imputed interest | (12) | |
Total operating lease liabilities | $ 76.1 | $ 23.2 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 floater rigs contract drillship Reportable_segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Reportable_segment | 4 |
Number of contract drilling rigs | 53 |
Number of jackups leased by ARO | 8 |
Number of drilling management contracts | contract | 2 |
Total number of contract drilling rigs | 53 |
Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 18 |
Floaters [Member] | Ultra Deepwater Drillships [Member] | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs | floater | 13 |
Floaters [Member] | Dynamically Positioned Semisubmersible [Member] | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs | floater | 4 |
Floaters [Member] | Moored Semisubmersible Rigs [Member] | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs | floater | 1 |
Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 27 |
ARO | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs | floater | 8 |
Total number of contract drilling rigs | 8 |
ARO | Work in progress | Middle East & Africa [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | drillship | 1 |
Jackup Rigs Member [Member] | Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Number of contract drilling rigs | drillship | 27 |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 8 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 397.4 | $ 835 | $ 1,784.2 | $ 1,602.5 | ||
Cost of Goods and Services Sold | 343.8 | 724.1 | 1,543.6 | 1,383.2 | ||
Loss on impairment | $ 34.5 | $ 5.6 | 756.5 | 0 | 0 | 34.5 |
Depreciation | 159.6 | 66.1 | 101.1 | 91.2 | ||
General and administrative | 30.7 | 58.2 | 99.3 | 80.9 | ||
Income (Loss) from Equity Method Investments | (3.1) | (6.1) | (13.3) | (24.5) | ||
OPERATING LOSS | (890.1) | (7.3) | 53.5 | 37.2 | ||
Property and equipment, net | 909.1 | 890.9 | 1,633.8 | 977.2 | ||
Segment, Expenditure, Addition to Long-Lived Assets | 8.7 | 50.2 | 696.1 | 207 | ||
Floaters [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 115.7 | 254.5 | 948.7 | 700.5 | ||
Cost of Goods and Services Sold | 106.5 | 250.7 | 812 | 646 | ||
Loss on impairment | 756.5 | 34.5 | ||||
Depreciation | 72.1 | 31 | 55.8 | 50 | ||
General and administrative | 0 | 0 | 0 | 0 | ||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 | ||
OPERATING LOSS | (819.4) | (27.2) | 80.9 | (30) | ||
Property and equipment, net | 419.3 | 408.2 | 1,035.5 | 487.5 | ||
Segment, Expenditure, Addition to Long-Lived Assets | 3.3 | 26 | 562 | 152.9 | ||
Jackups [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 232.4 | 487.1 | 659.6 | 744.2 | ||
Cost of Goods and Services Sold | 175 | 365.2 | 517.4 | 538.9 | ||
Loss on impairment | 0 | 0 | ||||
Depreciation | 69.7 | 32 | 40 | 36.1 | ||
General and administrative | 0 | 0 | 0 | 0 | ||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 | ||
OPERATING LOSS | (12.3) | 89.9 | 102.2 | 169.2 | ||
Property and equipment, net | 401.4 | 401.9 | 480.8 | 391.7 | ||
Segment, Expenditure, Addition to Long-Lived Assets | 5.4 | 23.7 | 132.3 | 53.5 | ||
ARO | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 163.5 | 307.1 | 496.6 | 459.5 | ||
Cost of Goods and Services Sold | 116.1 | 246.2 | 365.9 | 341.8 | ||
Loss on impairment | 0 | 0 | ||||
Depreciation | 21 | 44.2 | 65.9 | 63.4 | ||
General and administrative | 4.2 | 13.6 | 22.2 | 18.7 | ||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 | ||
OPERATING LOSS | 22.2 | 3.1 | 42.6 | 35.6 | ||
Property and equipment, net | 730.7 | 730.6 | 1,036.6 | 775.6 | ||
Segment, Expenditure, Addition to Long-Lived Assets | 14.9 | 41.8 | 300.8 | 103.7 | ||
Other [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 49.3 | 93.4 | 175.9 | 157.8 | ||
Cost of Goods and Services Sold | 19.9 | 38.9 | 75.2 | 76.4 | ||
Loss on impairment | 0 | 0 | ||||
Depreciation | 14.8 | 2.8 | 5 | 4.6 | ||
General and administrative | 0 | 0 | 0 | 0 | ||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 | ||
OPERATING LOSS | 14.6 | 51.7 | 95.7 | 76.8 | ||
Property and equipment, net | 50.5 | 46 | 52.1 | 56.8 | ||
Segment, Expenditure, Addition to Long-Lived Assets | 0 | 0 | 0 | 0 | ||
Reconciling Items [Member] | Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (163.5) | (307.1) | (496.6) | (459.5) | ||
Cost of Goods and Services Sold | (73.7) | (176.9) | (226.9) | (219.9) | ||
Loss on impairment | 0 | 0 | ||||
Depreciation | (18) | (43.9) | (65.6) | (62.9) | ||
General and administrative | 26.5 | 44.6 | 77.1 | 62.2 | ||
Income (Loss) from Equity Method Investments | (3.1) | (6.1) | (13.3) | (24.5) | ||
OPERATING LOSS | (95.2) | (124.8) | (267.9) | (214.4) | ||
Property and equipment, net | (692.8) | (695.8) | (971.2) | (734.4) | ||
Segment, Expenditure, Addition to Long-Lived Assets | $ (14.9) | $ (41.3) | $ (299) | $ (103.1) |
Segment Information (Schedule_2
Segment Information (Schedule Of Geographic Distribution Of Rigs By Segment) (Details) | Dec. 31, 2023 rigs |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 53 |
Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 18 |
Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 27 |
Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 8 |
ARO | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 8 |
North & South America (Excluding Brazil) [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 16 |
North & South America (Excluding Brazil) [Member] | Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 9 |
North & South America (Excluding Brazil) [Member] | Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 7 |
North & South America (Excluding Brazil) [Member] | Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
North & South America (Excluding Brazil) [Member] | ARO | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
Europe & Mediterranean [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 16 |
Europe & Mediterranean [Member] | Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 4 |
Europe & Mediterranean [Member] | Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 12 |
Europe & Mediterranean [Member] | Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
Europe & Mediterranean [Member] | ARO | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
Asia Pacific [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 5 |
Asia Pacific [Member] | Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 2 |
Asia Pacific [Member] | Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 3 |
Asia Pacific [Member] | Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
Asia Pacific [Member] | ARO | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 0 |
Middle East and Africa | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 16 |
Middle East and Africa | Floaters [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 3 |
Middle East and Africa | Jackups [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 5 |
Middle East and Africa | Other [Member] | |
Segment Reporting Information [Line Items] | |
Total number of contract drilling rigs | 8 |
Segment Information (Schedule_3
Segment Information (Schedule Of Long-Lived Assets By Geographical Segment) (Details) - Operating Segments [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Total Countries | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 1,708.4 | $ 998.2 |
SPAIN | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 438.9 | 117.7 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 374.5 | 102 |
United Kingdom [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 277.8 | 185.2 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | 206.5 | 166.3 |
Other countries [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Net | $ 410.7 | $ 427 |
Supplemental Financial Inform_3
Supplemental Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | |||||
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 12.6 | $ 24.4 | |||
Interest Costs Capitalized | $ 0 | $ 0 | $ 5.6 | $ 1.2 | |
Proceeds from Income Tax Refunds | $ 45.9 |
Supplemental Financial Inform_4
Supplemental Financial Information (Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 |
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items] | |||
Accounts receivable | $ 474.6 | $ 463.9 | |
Income Taxes Receivable, Current | 83.2 | 93.6 | |
Other Receivables, Gross, Current | 16.2 | 24.6 | |
Allowance for doubtful accounts | (15.3) | (14.8) | |
Accounts receivable, net | 459.3 | 449.1 | $ 425.9 |
Trade [Member] | |||
Supplemental Information For Property, Casualty Insurance Underwriters [Line Items] | |||
Accounts receivable | $ 375.2 | $ 345.7 |
Supplemental Financial Inform_5
Supplemental Financial Information (Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 |
Supplemental Financial Information [Abstract] | |||
Deferred mobilization costs | $ 75.3 | $ 59.1 | |
Prepaid taxes | 49.1 | 44.6 | |
Prepaid expenses | 23.6 | 17.5 | |
Other | 29.2 | 27.4 | |
Other | $ 177.2 | $ 148.6 | $ 90.5 |
Supplemental Financial Inform_6
Supplemental Financial Information (Accrued Liabilities And Other) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplemental Financial Information [Abstract] | ||
Contract with Customer, Liability, Current | $ 116.2 | $ 78 |
Personnel costs | 76.6 | 55.8 |
Taxes | 52.9 | 41.4 |
Operating Lease, Liability, Current | 27.2 | 9.4 |
Accrued Claims | 20.4 | 27.2 |
Accrued interest | 15.4 | 7.6 |
Other | 35.5 | 28.5 |
Accrued liabilities and other | $ 344.2 | $ 247.9 |
Supplemental Financial Inform_7
Supplemental Financial Information (Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2021 |
Supplemental Financial Information [Abstract] | |||
Unrecognized tax benefits (inclusive of interest and penalties) | $ 224 | $ 275 | |
Liability, Defined Benefit Plan, Noncurrent | 141.6 | 159.8 | |
Operating Lease, Liability, Noncurrent | 48.9 | 13.8 | |
Contract with Customer, Liability, Noncurrent | 37.6 | 41 | |
Other Accrued Liabilities, Noncurrent | 19.6 | 9.9 | |
Other Liabilities, Noncurrent | 471.7 | 499.5 | $ 565.4 |
Contract with Customer, Liability, Current | $ 116.2 | $ 78 |
Supplemental Financial Inform_8
Supplemental Financial Information (Repair And Maintenance Expense Related To Continuing Operations) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | ||||
Repair and maintenance expense | $ 48.4 | $ 76.3 | $ 203.3 | $ 175.2 |
Supplemental Financial Inform_9
Supplemental Financial Information Supplemental Financial Information (Other Income) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | ||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (29.2) | $ 0 |
Gain (Loss) on Sale of Properties | 6 | 21.2 | 28.6 | 141.2 |
Net foreign currency exchange gains (losses) | 13.4 | 8.1 | (3.5) | 12.2 |
Net periodic pension and retiree medical income | (5.4) | 8.7 | 0.9 | 16.4 |
Other Nonoperating Expense | 1.1 | 0.1 | 1.4 | 0.1 |
Other, net | $ 25.9 | $ 38.1 | $ (1.8) | $ 169.9 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other, net |
Supplemental Financial Infor_10
Supplemental Financial Information (Cash Flows Information) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | ||||
(Increase) decrease in accounts receivable | $ 23.2 | $ (18.3) | $ 44.9 | $ (6.9) |
(Increase) decrease in other assets | 15.7 | 9 | (5.9) | 0.5 |
(Decrease) increase in liabilities | 38.2 | 29.3 | 82.8 | (0.2) |
Changes in operating assets and liabilities | $ 77.1 | $ 20 | $ 121.8 | $ (6.6) |
Supplemental Financial Infor_11
Supplemental Financial Information (Cash Paid For Interest And Income Taxes) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | ||||
Interest, net of amounts capitalized | $ 0 | $ 22.8 | $ 32.3 | $ 44.2 |
Income Taxes Paid, Net | (16.9) | 23.5 | (8.3) | 5.6 |
Capital expenditure accruals | $ 6.5 | $ 9.3 | $ 71.5 | $ 22.1 |
Supplemental Financial Infor_12
Supplemental Financial Information Supplemental Financial Information (Major Customers) (Details) - Customer Concentration Risk [Member] - Revenue | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 100% | 100% | 100% | 100% |
BP [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 14% | 11% | 11% | 15% |
Other Customers [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 86% | 89% | 89% | 85% |
Floaters [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 29% | 31% | 53% | 44% |
Floaters [Member] | BP [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 5% | 2% | 0% | 6% |
Floaters [Member] | Other Customers [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 24% | 29% | 53% | 38% |
Jackups Member | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 59% | 58% | 37% | 46% |
Jackups Member | BP [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 2% | 2% | 5% | 3% |
Jackups Member | Other Customers [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 57% | 56% | 32% | 43% |
Managed Rig | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 12% | 11% | 10% | 10% |
Managed Rig | BP [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 7% | 7% | 6% | 6% |
Managed Rig | Other Customers [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Percentage | 5% | 4% | 4% | 4% |
Supplemental Financial Infor_13
Supplemental Financial Information Supplemental Financial Information (Revenue by region) (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 397.4 | $ 835 | $ 1,784.2 | $ 1,602.5 |
Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 397.4 | 835 | 1,784.2 | 1,602.5 |
Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 115.7 | 254.5 | 948.7 | 700.5 |
Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 232.4 | 487.1 | 659.6 | 744.2 |
Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 49.3 | 93.4 | 175.9 | 157.8 |
Us Gulf Of Mexico [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74.4 | 109.9 | 352.8 | 351.2 |
Us Gulf Of Mexico [Member] | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 47.9 | 52.8 | 220.9 | 230.9 |
Us Gulf Of Mexico [Member] | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0.2 | 0.7 | 27.2 | 21.3 |
Us Gulf Of Mexico [Member] | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 26.3 | 56.4 | 104.7 | 99 |
United Kingdom [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 75.7 | 185.2 | 267.2 | 264.5 |
United Kingdom [Member] | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
United Kingdom [Member] | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 75.7 | 185.2 | 267.2 | 264.5 |
United Kingdom [Member] | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Angola [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 20.5 | 19.4 | 210.9 | 78.5 |
Angola [Member] | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 20.5 | 19.4 | 210.9 | 78.5 |
Angola [Member] | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Angola [Member] | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Brazil [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 38.6 | 195 | 111.5 |
Brazil [Member] | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 38.6 | 195 | 111.5 |
Brazil [Member] | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Brazil [Member] | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
AUSTRALIA | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1 | 75.5 | 186.9 | 143 |
AUSTRALIA | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0.8 | 46.2 | 157 | 113 |
AUSTRALIA | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0.2 | 29.3 | 29.9 | 30 |
AUSTRALIA | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
SAUDI ARABIA | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 53.5 | 92.3 | 112.4 | 137.1 |
SAUDI ARABIA | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
SAUDI ARABIA | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 30.5 | 55.3 | 41.2 | 78.3 |
SAUDI ARABIA | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 23 | 37 | 71.2 | 58.8 |
MEXICO | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 44.3 | 77.8 | 104.6 | 72 |
MEXICO | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 21.6 | 37 | 65.9 | 13.9 |
MEXICO | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 22.7 | 40.8 | 38.7 | 58.1 |
MEXICO | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
NORWAY | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 73.3 | 123.9 | 2.4 | 114.6 |
NORWAY | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
NORWAY | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 73.3 | 123.9 | 2.4 | 114.6 |
NORWAY | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Other Geographic Areas [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 54.7 | 112.4 | 352 | 330.1 |
Other Geographic Areas [Member] | Floaters [Member] | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 24.9 | 60.5 | 99 | 152.7 |
Other Geographic Areas [Member] | Jackups Member | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 29.8 | 51.9 | 253 | 177.4 |
Other Geographic Areas [Member] | Managed Rig | Geographic Concentration Risk [Member] | Revenue | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Uncategorized Items - val-20231
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 325,800,000 |