Company: NE-WTA
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001628280-25-020547
Chunk: 22

Company: Noble Corp plc
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 22
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million, respectively, related to certain unfavorable customer contracts 

14

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)

acquired. These liabilities will be amortized as an increase to contract drilling services revenue from the closing date of the Business Combination with Maersk Drilling and the Diamond Closing Date, respectively, through the remainder of the contracts.Unfavorable contactsFavorable contractsBalance at December 31, 2024$(8,580)$214 Additions— — Amortization7,664 (214)Balance at March 31, 2025$(916)$— Estimated future amortization over the expected remaining contract periods:Year Ended December 31,2025TotalUnfavorable contracts$916 $916 Favorable contracts— — Total$916 $916 

Note 8 — Income TaxesAt March 31, 2025, the Company had deferred tax assets of $323.9 million, net of valuation allowance. Additionally, the Company also had deferred tax liabilities of $5.2 million, inclusive of a valuation allowance of $17.5 million.During the three months ended March 31, 2025, the Company recognized additional discrete deferred tax benefits of $56.6 million related to releases and adjustments of valuation allowance for deferred tax benefits primarily in Luxembourg.At March 31, 2024, the Company had deferred tax assets of $209.5 million, net of valuation allowance. Additionally, the Company also had deferred tax liabilities of $10.3 million, inclusive of a valuation allowance of $18.8 million.During the three months ended March 31, 2024, the Company recognized additional discrete deferred tax benefits of $18.5 million related to releases and adjustments of valuation allowance for deferred tax benefits in Guyana, Nigeria, Switzerland, and Luxembourg.In deriving the above net deferred tax benefits, the Company relied on sources of income attributable to the projected taxable income for the period covered by the Company’s relevant existing drilling contracts based on the assumption that the relevant rigs will be owned by the relevant rig owners during the relevant existing drilling contract periods. Given the mobile nature of the Company’s assets, we are not able to reasonably forecast the jurisdictions in which taxable income from future drilling contracts may arise. We also have