v3.26.1
Revenues
3 Months Ended
Mar. 31, 2026
Revenues.  
Revenues

Note 4—Revenues

Overview—For most of our contracts with customers, our drilling services represent a single performance obligation that is satisfied over time, the duration of which varies by contract.  As of March 31, 2026, the drilling contract with the longest expected remaining duration, excluding unexercised options, extends through November 2030.

Disaggregation—Our contract drilling revenues, disaggregated by asset group and by country in which they were earned, were as follows (in millions):

Three months ended March 31, 

  ​

2026

2025

  ​

  ​

Ultra-

  ​

Harsh

  ​

Ultra-

  ​

Harsh

  ​

  ​

  ​

deepwater

  ​

environment

  ​

deepwater

  ​

environment

  ​

  ​

  ​

floaters

  ​

floaters

  ​

Total

floaters

  ​

floaters

  ​

Total

  ​

U.S.

 

$

433

$

$

433

$

394

$

$

394

 

Brazil

232

232

192

192

Norway

179

179

159

159

Other countries (a)

83

154

237

72

89

161

Total contract drilling revenues

 

$

748

$

333

$

1,081

$

658

$

248

$

906

 

(a)The aggregate contract drilling revenues earned in other countries that individually represented less than 10 percent of total contract drilling revenues.

Contract liabilities—Contract liabilities for our contracts with customers were as follows (in millions):

March 31, 

December 31, 

2026

2025

 

Deferred contract revenues, recorded in other current liabilities

 

$

156

$

181

Deferred contract revenues, recorded in other long-term liabilities

75

92

Total contract liabilities

 

$

231

$

273

Significant changes in contract liabilities were as follows (in millions):

Three months ended March 31, 

2026

2025

Total contract liabilities, beginning of period

$

273

$

443

Decrease due to recognition of revenues for goods and services

(65)

(62)

Increase due to goods and services transferred over time

23

24

Total contract liabilities, end of period

$

231

$

405

Pre-operating costs—In the three months ended March 31, 2026 and 2025, we recognized pre-operating costs of $38 million and $37 million, respectively, recorded in operating and maintenance costs.  At March 31, 2026 and December 31, 2025, the carrying amount of our unrecognized pre-operating costs to obtain contracts was $101 million and $136 million, respectively, recorded in other assets.