v3.26.1
Revenues
6 Months Ended
Jun. 30, 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 June 30, 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 June 30, 

Six months ended June 30, 

  ​

2026

2025

  ​

2026

2025

 

  ​

Ultra-

  ​

Harsh

  ​

Ultra-

  ​

Harsh

  ​

  ​

Ultra-

  ​

Harsh

  ​

Ultra-

  ​

Harsh

  ​

 

  ​

deepwater

  ​

environment

  ​

deepwater

  ​

environment

  ​

  ​

deepwater

  ​

environment

  ​

deepwater

  ​

environment

  ​

 

  ​

floaters

  ​

floaters

  ​

Total

floaters

  ​

floaters

  ​

Total

  ​

floaters

  ​

floaters

  ​

Total

floaters

  ​

floaters

  ​

Total

 

U.S.

 

$

344

$

$

344

$

408

$

$

408

 

$

777

$

$

777

$

802

$

$

802

 

Brazil

167

167

221

221

399

399

413

413

Norway

177

177

140

140

356

356

299

299

Australia

107

107

92

92

209

209

175

175

Other countries (a)

112

59

171

70

57

127

195

111

306

142

63

205

Total contract drilling revenues

 

$

623

$

343

$

966

$

699

$

289

$

988

 

$

1,371

$

676

$

2,047

$

1,357

$

537

$

1,894

 

(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):

June 30, 

December 31, 

2026

2025

 

Contract liabilities, recorded in other current liabilities

 

$

120

$

181

Contract liabilities, recorded in other long-term liabilities

70

92

Total contract liabilities

 

$

190

$

273

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

Six months ended June 30, 

2026

2025

Total contract liabilities, beginning of period

$

273

$

443

Decrease due to recognition of revenues for goods and services

(110)

(130)

Increase due to goods and services transferred over time

27

46

Total contract liabilities, end of period

$

190

$

359

Pre-operating costs—In the three and six months ended June 30, 2026, we recognized pre-operating costs of $25 million and $63 million, respectively, recorded in operating and maintenance costs.  In the three and six months ended June 30, 2025, we recognized pre-operating costs of $42 million and $79 million, respectively, recorded in operating and maintenance costs.  At June 30, 2026 and December 31, 2025, the carrying amount of our unrecognized pre-operating costs to obtain contracts was $80 million and $136 million, respectively, recorded in other assets.