Seadrill LtdSDRL

Seadrill Ltd Segments Disclosure

10-KFiled Feb 26, 20262 min read
Segment information
Operating segments
The information provided to our Chief Operating Decision Maker ("CODM"), which is the Board of Directors, to assess performance and allocate resources is on a consolidated basis, reflecting our operational structure. We view our operations and manage our business as one operating segment, using Operating Profit as presented in our Consolidated Statements of Operations.
Geographic data
Revenues
Revenues are attributed to geographical locations based on the country of operations for drilling activities, i.e., the country where the revenues are generated. The following table presents our revenues by geographic area:
(In $ millions)Year ended December 31, 2025Year ended December 31, 2024Year ended December 31, 2023
Brazil611 343 343
United States368 366 446
Angola331 335 271
Norway97 188 213
Others (1)
30 153 229
Total operating revenues1,437 1,385 1,502 
(1)"Other" represents countries in which we operate that individually had revenues representing less than 10% of total operating revenues earned for any of the periods presented.
Fixed assets – drilling units (1)
Drilling unit fixed assets by geographic area based on location as of the end of the year are as follows:
(In $ millions)December 31, 2025December 31, 2024
Brazil1,401 1,427 
United States727 678 
Norway406 420 
Others (2)
435 421 
Total2,969 2,946 
(1)Asset locations at the end of the period are not necessarily indicative of the geographic distribution of the revenues or operating profits generated by such assets during such period.
(2)Others represent countries in which we operate that individually had drilling unit fixed assets representing less than 10% of total drilling unit fixed assets for any of the periods presented.
Major customers
During the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we had the following customers with total revenues greater than 10% of total operating revenues in any of the periods presented:
Year ended December 31, 2025Year ended December 31, 2024Year ended December 31, 2023
Petrobras36 %18 %16 %
Sonadrill22 %22 %17 %
Talos11 %2 %7 %
LLOG10 %9 %9 %
Others21 %49 %51 %
Total100 %100 %100 %
Significant expenses
The significant expense category regularly provided to our CODM to manage operations is Total Operating Expenses, which is presented in the Consolidated Statements of Operations.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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