Company: NE-WTA
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038188
Chunk: 67

Company: Noble Corp plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 67
---
 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 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.

13

NOBLE CORPORATION plc AND SUBSIDIARIESNOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unless otherwise indicated, dollar and share amounts in tables are in thousands, except per share data)

The following table provides information about contract assets and contract liabilities from contracts with customers:June 30, 2025December 31, 2024Current customer contract assets$25,366 $26,049 Noncurrent customer contract assets7,344 11,042 Total customer contract assets32,710 37,091 Current deferred revenue(53,122)(61,506)Noncurrent deferred revenue(40,511)(40,439)Total deferred revenue$(93,633)$(101,945)Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the six months ended June 30, 2025 and 2024, are as follows:Contract AssetsContract LiabilitiesNet balance at December 31, 2024$37,091 $(101,945)Additions to deferred costs25,409 — Additions to deferred revenue— (92,321)Amortization of deferred costs(29,790)— Amortization of deferred revenue— 100,633 Total(4,381)8,312 Net balance at June 30, 2025$32,710 $(93,633