Noble Corp plcNE
Noble Corp plc Revenue Disclosure
Note 8 — Revenue and Customers
Disaggregation of Revenue
The following table provides information about contract drilling revenue by rig types:
| Year Ended | Year Ended | Year Ended | ||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||||||
| Floaters | $ | 2,567,698 | $ | 2,349,644 | $ | 2,010,113 | ||||||||||||||
| Jackups | 539,509 | 569,123 | 451,602 | |||||||||||||||||
| Total | $ | 3,107,207 | $ | 2,918,767 | $ | 2,461,715 | ||||||||||||||
Contract Balances
Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 to 60 days. Customer contract assets and liabilities
generally consist of contract costs and deferred revenue resulting from past transactions related to the provision of services under contracts with customers. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets.
Certain direct and incremental costs incurred for upfront preparation, initial rig mobilization, and modifications are costs of fulfilling a contract and are recoverable. These recoverable costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process.
Certain of our contracts also include capital rig enhancements used to satisfy our performance obligations. Payments for these modifications are initially recognized as a contract liability and amortized ratably as contract drilling revenue over the initial term of the related drilling contract. The costs are capitalized in accordance with our existing property and equipment accounting policy and depreciated over the estimated useful life of the improvement.
The following table provides information about contract assets and contract liabilities from contracts with customers:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Current customer contract assets | $ | 29,525 | $ | 26,049 | ||||||||||
| Noncurrent customer contract assets | 1,112 | 11,042 | ||||||||||||
| Total customer contract assets | 30,637 | 37,091 | ||||||||||||
| Current deferred revenue | (64,400) | (61,506) | ||||||||||||
| Noncurrent deferred revenue | (32,718) | (40,439) | ||||||||||||
| Total deferred revenue | $ | (97,118) | $ | (101,945) | ||||||||||
Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the year ended December 31, 2025 and 2024, are as follows:
| Contract Assets | Contract Liabilities | |||||||||||||
| Net balance at December 31, 2022 | $ | 11,537 | $ | (59,797) | ||||||||||
| Additions to deferred costs | 19,575 | — | ||||||||||||
| Additions to deferred revenue | — | (60,430) | ||||||||||||
| Amortization of deferred costs | (26,696) | — | ||||||||||||
| Amortization of deferred revenue | — | 77,155 | ||||||||||||
| Total | (7,121) | 16,725 | ||||||||||||
| Net balance at December 31, 2023 | $ | 4,416 | $ | (43,072) | ||||||||||
| Additions to deferred costs | 55,323 | — | ||||||||||||
| Additions to deferred revenue | — | (134,359) | ||||||||||||
| Amortization of deferred costs | (22,648) | — | ||||||||||||
| Amortization of deferred revenue | — | 75,486 | ||||||||||||
| Total | 32,675 | (58,873) | ||||||||||||
| Net balance at December 31, 2024 | $ | 37,091 | $ | (101,945) | ||||||||||
| Additions to deferred costs | 46,245 | — | ||||||||||||
| Additions to deferred revenue | — | (143,633) | ||||||||||||
| Amortization of deferred costs | (52,699) | — | ||||||||||||
| Amortization of deferred revenue | — | 148,460 | ||||||||||||
| Total | (6,454) | 4,827 | ||||||||||||
| Net balance at December 31, 2025 | $ | 30,637 | $ | (97,118) | ||||||||||
Future Amortization of Deferred Revenue
The following table reflects revenue expected to be recognized in the future related to deferred revenue, by rig type, at the end of the reporting period:
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | Total | |||||||||||||||||||||||
| Floaters | $ | 37,398 | $ | 17,321 | $ | 7,585 | $ | 62,304 | ||||||||||||||||||
| Jackups | 27,069 | 7,745 | — | 34,814 | ||||||||||||||||||||||
| Total | $ | 64,467 | $ | 25,066 | $ | 7,585 | $ | 97,118 | ||||||||||||||||||
The revenue included above consists of expected mobilization, demobilization, and upgrade revenue for unsatisfied performance obligations. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at December 31, 2025. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have taken the optional exemption, permitted by accounting standards, to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance
obligation consisting of a series of distinct hourly, or more frequent, periods, the variability of which will be resolved at the time of the future services.
Off-market Customer Contract Assets and Liabilities
Upon emergence from Chapter 11 bankruptcy, the Company recognized fair value adjustments of $113.4 million related to intangible assets for certain favorable customer contracts, which were fully amortized as of August 2023. In addition, in connection with the Business Combination with Maersk Drilling, the Company recognized additional fair value adjustments of $23.0 million, related to intangible assets for certain favorable customer contracts. As of March 2025, these intangible assets were fully amortized as a reduction of contract drilling services revenue from October 3, 2022, through the remainder of the contracts.
In connection with the Business Combination with Maersk Drilling and the Diamond Transaction, the Company recognized fair value adjustments of $237.7 million and $27.7 million, respectively, related to certain unfavorable customer contracts acquired. As of June 2025, these liabilities were fully amortized as an increase to contract drilling services revenue from October 3, 2022, and the Diamond Closing Date, respectively, through the remainder of the contracts.
Unfavorable contacts | Favorable contracts | |||||||||||||
| Balance at December 31, 2022 | $ | (181,883) | $ | 34,372 | ||||||||||
| Additions | — | — | ||||||||||||
| Amortization | 131,020 | (24,244) | ||||||||||||
| Balance at December 31, 2023 | $ | (50,863) | $ | 10,128 | ||||||||||
| Additions | (27,663) | — | ||||||||||||
| Amortization | 69,946 | (9,914) | ||||||||||||
| Balance at December 31, 2024 | $ | (8,580) | $ | 214 | ||||||||||
| Additions | — | — | ||||||||||||
| Amortization | 8,580 | (214) | ||||||||||||
| Balance at December 31, 2025 | $ | — | $ | — | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 9, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.