Rowan Companies 10-Q 10 Aug 09 2009 Q2 Quarterly report Financial data

1000 - CONDENSED CONSOLIDATED B

1000 - CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
CURRENT ASSETS:
Cash and cash equivalents	$213,861	$222,428
Receivables - trade and other	368,101	484,962
Inventories - raw materials and supplies	357,378	337,503
Inventories - work-in-progress	163,873	213,177
Inventories - finished goods	715	749
Prepaid expenses and other current assets	96,648	59,466
Deferred tax assets - net	45,145	50,902
Total current assets	1,245,721	1,369,187
PROPERTY, PLANT AND EQUIPMENT - at cost:
Drilling equipment	3,631,026	3,503,590
Manufacturing plant and equipment	254,377	249,725
Construction in progress	541,907	425,182
Other property and equipment	138,705	126,915
Property, plant and equipment - gross	4,566,015	4,305,412
Less accumulated depreciation and amortization	1,238,137	1,157,884
Property, plant and equipment - net	3,327,878	3,147,528
Other assets	25,418	32,177
TOTAL ASSETS	4,599,017	4,548,892
CURRENT LIABILITIES:
Current maturities of long-term debt	64,922	64,922
Accounts payable - trade	119,155	235,048
Deferred revenues	189,430	174,086
Billings in excess of uncompleted contract costs and estimated profit	47,925	57,119
Accrued compensation and related employee costs	69,039	108,060
Accrued income taxes	4,907	58,317
Other current liabilities	45,179	47,090
Total current liabilities	540,557	744,642
Long-term debt - less current maturities	323,099	355,560
Other liabilities	374,673	362,026
Deferred income taxes - net	463,316	426,848
STOCKHOLDERS' EQUITY
Preferred stock	0	0
Common Stock	14,233	14,141
Additional paid-in capital	1,072,860	1,063,202
Retained earnings	2,030,305	1,802,022
Cost of treasury shares	(3,010)	(2,533)
Accumulated other comprehensive loss	(217,016)	(217,016)
Total stockholders' equity	2,897,372	2,659,816
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$4,599,017	$4,548,892

1100 - PARENTHETICAL DATA TO TH

1100 - PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Preferred stock, par value per share	$1	$1
Shares authorized	1,509,606	1,509,606
Shares outstanding	0	0
Shares issued	0	0
Common stock, par value per share	0.125	0.125
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	113,857,236	113,115,830
Treasury shares	111,745	79,948

2000 - CONDENSED CONSOLIDATED S

2000 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
In Thousands, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
REVENUES:
Drilling services	$320,807	$367,380	$701,177	$707,801
Manufacturing sales and services	161,353	219,762	275,791	364,830
Total revenues	482,160	587,142	976,968	1,072,631
COSTS AND EXPENSES:
Drilling operations (excluding items shown below)	136,840	163,238	282,221	319,777
Manufacturing operations (excluding items shown below)	147,388	179,417	238,196	305,581
Depreciation and amortization	42,609	33,461	83,108	66,552
Selling, general and administrative	24,720	30,773	49,296	58,172
Loss (gain) on disposals of property and equipment	60	(1,507)	(4,641)	(6,882)
Total costs and expenses	351,617	405,382	648,180	743,200
INCOME FROM OPERATIONS	130,543	181,760	328,788	329,431
OTHER INCOME (EXPENSE):
Interest expense	(2,457)	(4,329)	(5,600)	(9,895)
Less interest capitalized	2,343	4,329	5,107	9,168
Interest income	201	1,189	532	4,364
Other - net	2,422	909	3,836	1,244
Total other income - net	2,509	2,098	3,875	4,881
INCOME BEFORE INCOME TAXES	133,052	183,858	332,663	334,312
Provision for income taxes	36,469	63,250	104,380	115,079
NET INCOME	$96,583	$120,608	$228,283	$219,233
PER SHARE AMOUNTS:
Net income - basic	0.85	1.07	2.01	1.95
Net income - diluted	0.85	1.06	2.01	1.94

3000 - CONDENSED CONSOLIDATED S

3000 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net income	$228,283	$219,233
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	83,108	66,552
Deferred income taxes	42,225	28,119
Provision for pension and postretirement benefits	23,431	14,911
Stock-based compensation expense	6,004	6,652
Postretirement benefit claims paid	(1,740)	(1,360)
Loss (gain) on disposals of property and equipment	(4,641)	(6,882)
Contributions to pension plans	(16,685)	(13,259)
Changes in current assets and liabilities:
Receivables - trade and other	107,881	(13,750)
Inventories	24,397	(65,509)
Prepaid expenses and other current assets	(37,182)	(23,786)
Accounts payable	(156,294)	20,919
Accrued income taxes	(53,410)	(11,391)
Deferred revenues	15,344	(17,670)
Billings in excess of uncompleted contract costs and estimated profit	(9,194)	(32,401)
Other current liabilities	(24,648)	8,589
Net changes in other noncurrent assets and liabilities	(1,949)	(14,368)
Net cash provided by operations	224,930	164,599
Net cash used in investing activities:
Capital expenditures	(210,265)	(319,112)
Proceeds from disposals of property, plant and equipment	5,472	19,245
Change in restricted cash balance	0	50,000
Net cash used in investing activities	(204,793)	(249,867)
Net cash used in financing activities:
Repayments of borrowings	(32,461)	(32,461)
Payment of cash dividends	0	(22,345)
Proceeds from stock option and convertible debenture plans and other	3,757	34,689
Net cash used in financing activities	(28,704)	(20,117)
DECREASE IN CASH AND CASH EQUIVALENTS	(8,567)	(105,385)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	222,428	284,458
CASH AND CASH EQUIVALENTS, END OF PERIOD	$213,861	$179,073

6000 - GENERAL

6000 - GENERAL
	6 Months Ended Jun. 30, 2009 USD / shares
General
General - Organization, Consolidation and Presentation of Financial Statements	The condensed consolidated financial statements of Rowan Companies, Inc. (Rowan or the Company) included in this Form 10-Q have been prepared without audit in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission.Certain information and notes have been condensed or omitted as permitted by those rules and regulations.Rowan believes that the disclosures included herein are adequate, but suggests that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and related notes included in the Companys Annual Report on Form 10-K for the year ended December 31, 2008. Rowan believes the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the results for the interim periods presented.Rowans results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year.
General - Schedule of New Accounting Pronouncements and Changes in Accounting Principles	New Accounting Standards In April 2009, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, which expands the fair value disclosures required for financial instruments to interim periods for publicly traded entities.The FSP is effective for interim and annual periods ending after June 15, 2009.Rowan adopted the provisions of the FSP during the second quarter of 2009.Adoption had no material impact on the Company's financial statements. (See Note 11). In May 2009, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 165, Subsequent Events.SFAS No. 165 establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued, and is effective for interim or annual periods ending after June 15, 2009.Rowan adopted the provisions of SFAS No. 165 during the second quarter of 2009.Adoption had no material impact on the Company's financial statements. (See Note 12). In June 2009, the FASB issued SFAS No. 168, The FASB Accounting Standards Codification and Hierarchy of Generally Accepted Accounting Principles.SFAS No. 168 establishes the codification as the authoritative source of U.S. GAAP to be applied to nongovernmental entities and is effective for interim and annual periods ending after September 15, 2009.Adoption is not expected to have a material impact on the Company's financial position or results of operations.

6010 - SEGMENT INFORMATION

6010 - SEGMENT INFORMATION
	6 Months Ended Jun. 30, 2009 USD / shares
Segment Information
Segment Information	Rowan has three principal operating segments Drilling Services, Drilling Products and Systems, and Mining, Forestry and Steel Products.The Drilling Services segment provides onshore and offshore oil and gas contract drilling services on a daily-rate basis.The Drilling Products and Systems segment manufactures equipment and parts for the drilling industry featuring jack-up rigs, rig kits and related components and parts, mud pumps, drawworks, top drives, rotary tables, other rig equipment, variable-speed motors, drives and other electrical components.The Mining, Forestry and Steel Products segment manufactures large-wheeled mining and timber equipment and related parts, and carbon and alloy steel and steel plate.The Drilling Products and Systems and Mining, Forestry and Steel Products segments operate under the Companys wholly owned subsidiary, LeTourneau Technologies, Inc (LTI). The following table presents certain financial information by operating segment for the three and six months ended June 30, 2009 and 2008 (in millions): Three Months Six Months Ended June 30, Ended June 30, 2009 2008 2009 2008 Revenues: Drilling Services $ 320.8 $ 367.4 $ 701.2 $ 707.8 Manufacturing: Drilling Products and Systems 141.8 258.9 286.4 429.0 Mining, Forestry and Steel Products 54.7 61.5 98.0 115.5 Eliminations (35.1 ) (100.7 ) (108.6 ) (179.7 ) Total Manufacturing 161.4 219.7 275.8 364.8 Total revenues from external customers $ 482.2 $ 587.1 $ 977.0 $ 1,072.6 Income from operations: Drilling Services $ 127.9 $ 158.0 $ 315.0 $ 301.6 Manufacturing: Drilling Products and Systems 3.7 39.0 30.2 53.7 Mining, Forestry and Steel Products 8.9 6.4 14.0 8.8 Eliminations (9.9 ) (21.7 ) (30.4 ) (34.7 ) Total Manufacturing 2.7 23.7 13.8 27.8 Total income from operations $ 130.6 $ 181.7 $ 328.8 $ 329.4

6020 - EARNINGS PER SHARE

6020 - EARNINGS PER SHARE
	6 Months Ended Jun. 30, 2009 USD / shares
Earnings Per Share
Earnings Per Share	Rowans computations of basic and diluted income per share for the three and six months ended June 30, 2009 and 2008 are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Average common shares outstanding 113,596 112,921 113,362 112,192 Dilutive securities: Stock options 46 874 53 903 Convertible debentures - 47 - 200 Average shares for diluted calculations 113,642 113,842 113,415 113,295 Net income $ 96,583 $ 120,608 $ 228,283 $ 219,233 Net income per share: Basic $ .85 $ 1.07 $ 2.01 $ 1.95 Diluted $ .85 $ 1.06 $ 2.01 $ 1.94 The following table sets forth securities excluded from the diluted calculations because they were antidilutive for the periods indicated.Options and other potentially dilutive securities are antidilutive when the average stock market price during the period is less than the exercise price.Such securities could potentially dilute earnings per share in the future (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Stock options 1,792 63 1,792 63 Stock appreciation rights 514 - 514 - Convertible debentures 35 - 35 - 2,341 63 2,341 63

6030 - PENSION AND OTHER POSTRE

6030 - PENSION AND OTHER POSTRETIREMENT BENEFITS
	6 Months Ended Jun. 30, 2009 USD / shares
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits	Rowan sponsors defined benefit pension plans covering substantially all of its employees, and provides health care and life insurance benefits for certain retired employees. Net periodic pension cost recognized for the three and six months ended June 30, 2009 and 2008 included the following components (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Service cost $ 4,477 $ 3,371 $ 8,905 $ 6,741 Interest cost 8,405 7,650 16,718 15,300 Expected return on plan assets (7,233 ) (7,281 ) (14,387 ) (14,562 ) Recognized actuarial loss 4,040 1,467 8,056 3,966 Amortization of prior service cost (63 ) (64 ) (125 ) (127 ) Total net pension cost $ 9,626 $ 5,143 $ 19,167 $ 11,318 Other postretirement benefit cost recognized for the three and six months ended June 30, 2009 and 2008 included the following components (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Service cost $ 631 $ 509 $ 1,254 $ 1,018 Interest cost 1,244 1,105 2,474 2,209 Recognized actuarial loss 155 68 310 138 Amortization of transition obligation 165 164 328 329 Amortization of prior service cost (51 ) (50 ) (101 ) (101 ) Total other postretirement benefit cost $ 2,144 $ 1,796 $ 4,265 $ 3,593 Effective July 1, 2009, the Company amended the benefit formula for its largest pension plan for active employees who were earning benefits in the plan prior to January 1, 2008.The plan changes are expected to reduce pension expense for the second half of 2009 by approximately $7 million, or $0.04 per share net of tax. -7- During the first half of 2009, Rowan contributed $18.4 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $26 million during the remainder of 2009.

6040 - CASH AND CASH EQUIVALENT

6040 - CASH AND CASH EQUIVALENTS
	6 Months Ended Jun. 30, 2009 USD / shares
Cash and Cash Equivalents
Cash and Cash Equivalents	Rowans debt outstanding at June 30, 2009, is government-guaranteed through the Title XI program of U.S. Department of Transportations Maritime Administration (MARAD).At the Companys request, MARAD waived certain windstorm insurance coverage requirements under the loan agreements, for whichthe Company agreed to maintain a minimum unrestricted cash balance, which is currently $25 million.Rowan remains subject to restrictions on the use of certain insurance proceeds should the Company experience future windstorm losses.Each of these security provisions will be released by MARAD should Rowan be able to obtain windstorm coverage that satisfies the original terms of its debt agreements.

6050 - CONSTRUCTION PROJECTS IN

6050 - CONSTRUCTION PROJECTS IN PROCESS
	6 Months Ended Jun. 30, 2009 USD / shares
Construction Projects in Process
Construction Projects in Process	The following table summarizes the status of the Drilling Products and Systems segments long-term construction projects in process.Payments include those received for projects in progress and not yet begun and completed projects with outstanding collections (in millions): June 30, December 31, 2009 2008 Total contract value of long-term projects in process (or not yet begun) $ 199.2 $ 290.7 Payments received 132.2 168.6 Revenues recognized 86.1 119.7 Costs recognized 54.1 74.5 Payments received in excess of revenues recognized 46.1 48.9 Billings in excess of uncompleted contract costs and estimated profit $ 47.9 $ 57.1 Uncompleted contract costs and estimated profit in excess of billings (included in other current assets) $ 1.8 $ 8.2 During the three months ended June 30, 2009, Rowan recognized approximately $24.5 million of manufacturing revenues and $19.3 million of manufacturing costs related to long-term construction projects on the percentage-of-completion basis, as compared to $37.8 million of revenues and $24.0 million of costs for the comparable period of 2008. During the six months ended June 30, 2009, Rowan recognized approximately $50.6 million of manufacturing revenues and $35.5 million of manufacturing costs on the percentage-of-completion basis, as compared to $80.5 million of revenues and $52.8 million of costs for the comparable period of 2008.

6060 - COMMITMENTS

6060 - COMMITMENTS
	6 Months Ended Jun. 30, 2009 USD / shares
Commitments
Commitments	In June 2009, the Company announced it will resume construction of its third 240C class jack-up rig, the Joe Douglas, at its Vicksburg, Mississippi, shipyard, with delivery expected in the third quarter of 2011.The Company had suspended construction of the rig in January 2009 pending a reevaluation of its capital spending plans amid the turmoil in credit markets and downturn in jack-up drilling markets. Also in January 2009, the Company suspended construction of its fourth EXL class rig at the Keppel AmFELS, Inc. shipyard in Brownsville, Texas.The Company plans to make a decision regarding construction of that rig in the third quarter of 2009.Rowan has commitments outstanding of about $11 million and is subject to an estimated $22 million cancellation fee on the rig.Should the Company cancel construction of the rig, it would probably incur an impairment charge for a significant portion of the $62 million of expenditures made and to be made, including the cancellation fee. The following table presents the status of all of the Companys rigs under construction as of June 30, 2009.Amounts include capitalized interest (in millions): Total estimated project costs Total costs incurred through June 30, 2009 Projected costs for the remainder of 2009 Projected costs in 2010 and 2011 Ralph Coffman (240C) $ 244 $ 187 $ 57 $ - Joe Douglas (240C) 254 62 40 152 EXL #1 187 127 30 30 EXL #2 187 81 65 41 EXL #3 187 56 57 74 EXL #4 1 187 29 19 139 $ 1,246 $ 542 $ 268 $ 436 _____________________________ 1Expenditures for the EXL #4 assume management decides not to cancel construction of the rig.In the event management decides to cancel construction, projected expenditures for the rig would be $33 million for the remainder of 2009 and zero thereafter. Rowan periodically employs letters of credit or other bank-issued guarantees in the normal course of its businesses, and had unused letters of credit of approximately $38.7 million at June 30, 2009.

6070 - LEGAL PROCEEDINGS

6070 - LEGAL PROCEEDINGS
	6 Months Ended Jun. 30, 2009 USD / shares
Legal Proceedings
Legal Proceedings	During 2005, Rowan lost four offshore rigs, including the Rowan-Halifax, and incurred significant damage on a fifth as a result of Hurricanes Katrina and Rita.The Company leased the Rowan-Halifax under a charter agreement that commenced in 1984 and was scheduled to expire in March 2008.The rig was insured for $43.4 million, a value that Rowan believes to be more than sufficient to satisfy its obligations under the charter agreement, and by a margin sufficient to cover the $6.3 million carrying value of Rowan equipment installed on the rig.However, the parties holding interests in the rig under the charter claimed that the rig should have been insured for its fair market value and sought recovery from Rowan for compensation above the insured value.Thus, Rowan assumed no insurance proceeds related to the Rowan-Halifax and recorded a charge during 2005 for the full carrying value of its equipment.On November 3, 2005, the Company filed a declaratory judgment action styled Rowan Companies, Inc. vs. Textron Financial Corporation and Wilmington Trust Company as Owner Trustee of the Rowan-Halifax 116-C Jack-Up Rig in the 215th Judicial District Court of Harris County, Texas. The owner interests filed a counterclaim for a variety of relief, claiming a right to payment under the charter based on a post-casualty rig valuation of approximately $83 million.The insurance proceeds were placed in escrow.The district court ultimately granted judgment against Rowan for the difference between (a) what Rowan had already paid to the Owner Trustee out of the escrowed insurance proceeds and (b) that rig valuation.On March 31, 2009, the Court of Appeals for the 14th District of Texas reversed this judgment, holding that the Companys interpretation of the charter was substantially correct, but directing Rowan to pay additional amounts due under the charter.The Company has since made this payment out of the escrowed insurance proceeds.In addition, the Court of Appeals remanded the case for further proceedings in the district court to resolve additional issues and to determine the parties respective rights to the balance of the escrowed insurance proceeds, approximately $21.4 million.The Company believes that no further payment is owed to the opposing parties under the charter and intends to pursue that position vigorously in all subsequent court proceedings. -9- During 2004, Rowan learned that the Environmental and Natural Resources Division, Environmental Crimes Section of the U.S.Department of Justice (DOJ) had begun conducting a criminal investigation of environmental matters involving several of the Companys offshore drilling rigs, including a rig known as theRowan-Midland, which at various times operated in the Gulf of Mexico.In 2007, the Company entered into a plea agreement with the DOJ, as amended, under which the Company paid fines and made community service payments totaling $9million and agreed to be subject to unsupervised probation for a period of three years.During this period the Company must ensure that it commits no further criminal violations of federal, state, or local laws or regulations and must also continue to implement its comprehensiv

BASED COMPENSATION

BASED COMPENSATION
	6 Months Ended Jun. 30, 2009 USD / shares
Stock-Based Compensation
Stock-Based Compensation	In May 2009, stockholders of the Company approved the adoption of the 2009 Rowan Companies, Inc. Incentive Plan (the 2009 Plan or the Plan), which replaces the 2005 Rowan Companies, Inc. Long-Term Incentive Plan.Under the 2009 Plan, the Company may grant awards in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), or cash.The awards may be either time-based or performance-based, in which the number of shares issued is dependent on the achievement of certain performance criteria. On May 5, 2009, the Company granted awards under the 2009 Plan with a fair value of approximately $16.7 million.Fair value, net of estimated forfeitures, was $16.1 million, which will be amortized over a weighted-average period of 2.9 years. At June 30, 2009, Rowan had approximately $29 million of unrecognized future stock-based compensation expense, which is expected to be recognized over a weighted-average period of 2.3 years.

6090 - INCOME TAXES

6090 - INCOME TAXES
	6 Months Ended Jun. 30, 2009 USD / shares
Income Taxes
Income Taxes	During the second quarter of 2009, the Company lowered its estimated full-year 2009 effective tax rate to 31.4% from 33.6%.The reduction reflects the current-year estimated impact of a recent tax case that provides a more favorable tax treatment for certain foreign contracts entered into in prior years, but continuing through 2009 and beyond.We are currently assessing the impact to prior open tax years and intend to complete that analysis during the third quarter.

6100 - OTHER FINANCIAL STATEMEN

6100 - OTHER FINANCIAL STATEMENT DISCLOSURES
	6 Months Ended Jun. 30, 2009 USD / shares
OtherFinancialStatementDisclosures
Other Financial Statement Disclosures - Fair Value Disclosures	Fair Values of Financial Instruments The carrying amounts of the Companys cash and cash equivalents, trade receivables and payables and floating-rate debt approximate their fair values due to their short maturity or variable interest rate terms, as applicable.As of June 30, 2009, the fair values of the Companys fixed-rate notes, which had an aggregate carrying value of $192.2 million, approximated $195.3 million.As of December 31, 2008, the fair values of the $216.5 million carrying value of fixed-rate notes approximated $244 million.Fair values of the Companys fixed-rate notes were estimated based on quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities.
Other Financial Statement Disclosures - Cash Flow, Supplemental Information	Supplemental Cash Flow Information Interest payments (net of amounts capitalized) were $2.6 million and $2.7 million for the six months ended June 30, 2009 and 2008, respectively.Tax payments (net of refunds) were $127.2 million and $96.7 million for the six months ended June 30, 2009 and 2008, respectively.Accrued capital expenditures, which are excluded from capital expenditures in the Statement of Cash Flows until settlement, were $39.9 million and $27.8 million at June 30, 2009 and 2008, respectively.
Other Financial Statement Disclosures - Comprehensive Income	Other Comprehensive Income Rowan had no items of other comprehensive income during the three or six months ended June 30, 2009 or 2008.

6110 - SUBSEQUENT EVENTS

6110 - SUBSEQUENT EVENTS
	6 Months Ended Jun. 30, 2009 USD / shares
Subsequent Events
Subsequent Events	On July 21, 2009, Rowan issued $500 million aggregate principal amount of 7.875% senior notes due August 1, 2019, in a registered public offering, at a price of 99.341% of the principal amount.Net proceeds of approximately $492 million, after deduction for underwriters discount and offering expenses, are expected to be used for general corporate purposes. On August 4, 2009, Rowan fixed the interest rate on $65.7 million of MARAD debt outstanding at June 30, 2009, collateralized by the offshore rig, Bob Keller, at an annual rate of 3.525%.Prior to that time, the rate floated based on a short-term commercial-paper rate plus 0.15%. Rowan evaluated subsequent events and transactions that occurred through August 7, 2009, the date that these financial statements were issued.

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Amendment Description	none

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 31, 2009	Jun. 30, 2008
Entity Information [Line Items]
Entity Registrant Name	Rowan Companies, Inc.
Entity Central Index Key	0000085408
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$5,200,000,000
Entity Common Stock, Shares Outstanding		113,745,491