Long-Lived Assets	6 Months Ended
Jun. 30, 2026
Long-Lived Assets.
Long-Lived Assets	Note 5—Long-Lived Assets Impairments—In the three and six months ended June 30, 2025, we recognized an aggregate loss of $1.14 billion ($1.13 billion, or $1.27 per diluted share, net of tax) associated with the impairment of the ultra-deepwater floaters Discoverer Luanda and GSF Development Driller I, together with related assets, which we determined were impaired at the time that we classified the assets as held for sale, and the ultra-deepwater floaters Development Driller III and Discoverer Inspiration, together with related assets, which were previously classified as held for sale and determined to be further impaired. We measured the impairment of the rigs and related assets as the amount by which the carrying amount exceeded the estimated fair value less costs to sell. We estimated the fair value of the assets using significant other observable inputs, representative of Level 2 fair value measurements, including binding contracts or indicative market values for sale of the rigs and related assets for recycling. Assets held for sale—At June 30, 2026, the aggregate carrying amount of our assets held for sale, including the harsh environment semisubmersible Henry Goodrich, together with related assets, was $1 million. At December 31, 2025, the aggregate carrying amount of our assets held for sale, including the ultra-deepwater drillships Deepwater Champion, Discoverer India and the harsh environment semisubmersible Henry Goodrich, together with related assets, was $24 million. Disposals—In the six months ended June 30, 2026, we completed the sale of Deepwater Champion and Discoverer India, together with related assets, for aggregate net cash proceeds of $27 million, including $3 million received as a deposit in the year ended December 31, 2025, and we recognized an aggregate net gain of $4 million associated with the disposal of the rigs and related assets. In the six months ended June 30, 2026 and 2025, we received aggregate net cash proceeds of $2 million and $10 million, respectively, and recognized an aggregate net loss of $2 million and net gain of $9 million, respectively, associated with the disposal of assets unrelated to rig sales. Subsequent event—In July 2026, we completed the sale of Henry Goodrich, together with related assets, for net cash proceeds of $3 million.

Long-Lived Assets

6 Months Ended

Jun. 30, 2026

Note 5—Long-Lived Assets

Impairments—In the three and six months ended June 30, 2025, we recognized an aggregate loss of $1.14 billion ($1.13 billion, or $1.27 per diluted share, net of tax) associated with the impairment of the ultra-deepwater floaters Discoverer Luanda and GSF Development Driller I, together with related assets, which we determined were impaired at the time that we classified the assets as held for sale, and the ultra-deepwater floaters Development Driller III and Discoverer Inspiration, together with related assets, which were previously classified as held for sale and determined to be further impaired. We measured the impairment of the rigs and related assets as the amount by which the carrying amount exceeded the estimated fair value less costs to sell. We estimated the fair value of the assets using significant other observable inputs, representative of Level 2 fair value measurements, including binding contracts or indicative market values for sale of the rigs and related assets for recycling.

Assets held for sale—At June 30, 2026, the aggregate carrying amount of our assets held for sale, including the harsh environment semisubmersible Henry Goodrich, together with related assets, was $1 million. At December 31, 2025, the aggregate carrying amount of our assets held for sale, including the ultra-deepwater drillships Deepwater Champion, Discoverer India and the harsh environment semisubmersible Henry Goodrich, together with related assets, was $24 million.

Disposals—In the six months ended June 30, 2026, we completed the sale of Deepwater Champion and Discoverer India, together with related assets, for aggregate net cash proceeds of $27 million, including $3 million received as a deposit in the year ended December 31, 2025, and we recognized an aggregate net gain of $4 million associated with the disposal of the rigs and related assets. In the six months ended June 30, 2026 and 2025, we received aggregate net cash proceeds of $2 million and $10 million, respectively, and recognized an aggregate net loss of $2 million and net gain of $9 million, respectively, associated with the disposal of assets unrelated to rig sales.

Subsequent event—In July 2026, we completed the sale of Henry Goodrich, together with related assets, for net cash proceeds of $3 million.