Company: NE-WTA
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006184
Chunk: 136

Company: Noble Corp plc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 136
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 drilling units using the discounted cash flows expected to be generated from the drilling assets over their remaining useful lives. Assumptions used in management’s assessment included, but were not limited to, timing of future contract awards and expected operating dayrates, operating costs, rig utilization rates, tax rates, discount rate, capital expenditures, synergies, market values, and estimated economic useful lives of the rigs.

The principal considerations for our determination that performing procedures relating to the fair value of mobile offshore drilling units acquired in the acquisition of Diamond is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the mobile offshore drilling units acquired; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the expected operating dayrates, operating costs, rig utilization rates, tax rates, discount rate, synergies, and estimated economic useful lives of the rigs; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of the mobile offshore drilling units acquired. These procedures also included, among others (i) reading the purchase agreement; (ii) testing management’s process for developing the fair value estimate of the mobile offshore drilling units acquired; (iii) evaluating the appropriateness of the discounted cash flow models; (iv) testing the completeness and accuracy of underlying data used in the discounted cash flow models; and (v) evaluating the reasonableness of the significant assumptions used by management related to the expected operating dayrates, operating costs, rig utilization rates, tax rates, discount rate, synergies, and estimated economic useful lives of the rigs. Evaluating management’s assumptions related to the expected operating dayrates, operating costs, rig utilization rates, tax rates, synergies, and estimated economic useful lives of the rigs involved considering (i) the current and past performance of the mobile offshore drilling units; (ii) the consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the discounted cash flow models and the reasonableness of the discount rate assumption.

/s/ PricewaterhouseCoopers LLP Houston, TexasFebruary 18, 2025

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