Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ROWAN COMPANIES PLC | |
Entity Central Index Key | 85408 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 124,762,684 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $56,792 | $339,154 |
Receivables - trade and other | 503,151 | 545,204 |
Prepaid expenses and other current assets | 24,903 | 29,253 |
Deferred tax assets - net | 27,144 | 27,485 |
Total current assets | 611,990 | 941,096 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Drilling equipment | 8,440,018 | 7,639,171 |
Construction in progress | 737,298 | 1,023,646 |
Other property and equipment | 138,623 | 137,365 |
Property, plant and equipment - gross | 9,315,939 | 8,800,182 |
Less accumulated depreciation and amortization | 1,451,913 | 1,367,970 |
Property, plant and equipment - net | 7,864,026 | 7,432,212 |
Other assets | 35,948 | 37,884 |
TOTAL ASSETS | 8,511,964 | 8,411,192 |
CURRENT LIABILITIES: | ||
Accounts payable - trade | 118,073 | 102,773 |
Deferred revenues | 37,352 | 36,189 |
Accrued pension and other postemployment benefits | 26,219 | 26,219 |
Accrued compensation and related employee costs | 53,798 | 88,186 |
Accrued income taxes | 25,565 | 13,265 |
Accrued interest | 35,363 | 47,414 |
Other current liabilities | 21,863 | 19,175 |
Total current liabilities | 318,233 | 333,221 |
Long-term debt | 2,807,114 | 2,807,324 |
Other liabilities | 373,373 | 368,266 |
Deferred income taxes - net | 206,898 | 210,982 |
Commitments and contingent liabilities (Note 4) | ||
SHAREHOLDERS' EQUITY: | ||
Class A Ordinary Shares, $0.125 par value, 125,928,807 and 124,828,807 shares issued at March 31, 2015, and December 31, 2014, respectively | 15,741 | 15,604 |
Additional paid-in capital | 1,440,690 | 1,436,910 |
Retained earnings | 3,578,100 | 3,466,993 |
Cost of 1,165,394 and 264,903 treasury shares at March 31, 2015, and December 31, 2014, respectively | -11,453 | -7,990 |
Accumulated other comprehensive loss | -216,732 | -220,118 |
Total shareholders' equity | 4,806,346 | 4,691,399 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $8,511,964 | $8,411,192 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
SHAREHOLDERS' EQUITY: | ||
Treasury shares (in shares) | 1,165,394 | 264,903 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | 0.125 | 0.125 |
Common stock, shares issued (in shares) | 125,928,807 | 124,828,807 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
REVENUES | $547,039 | $377,602 |
COSTS AND EXPENSES: | ||
Direct operating costs (excluding items below) | 255,734 | 220,369 |
Depreciation and amortization | 89,690 | 70,873 |
Selling, general and administrative | 27,586 | 29,875 |
Loss (gain) on disposals of property and equipment | -513 | 803 |
Litigation settlement | 0 | -20,875 |
Total costs and expenses | 372,497 | 301,045 |
INCOME (LOSS) FROM OPERATIONS | 174,542 | 76,557 |
OTHER INCOME (EXPENSE): | ||
Interest expense, net of interest capitalized | -32,746 | -20,960 |
Interest income | 155 | 587 |
Other - net | -1,041 | -351 |
Total other income (expense) - net | -33,632 | -20,724 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 140,910 | 55,833 |
Provision for income taxes | 17,241 | 281 |
NET INCOME FROM CONTINUING OPERATIONS | 123,669 | 55,552 |
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | 0 | 4,043 |
NET INCOME | $123,669 | $59,595 |
INCOME PER SHARE - BASIC: | ||
Income from continuing operations (in dollars per share) | $0.99 | $0.45 |
Discontinued operations (in dollars per share) | $0 | $0.03 |
Net income (in dollars per share) | $0.99 | $0.48 |
INCOME PER SHARE - DILUTED: | ||
Income from continuing operations (in dollars per share) | $0.99 | $0.45 |
Discontinued operations (in dollars per share) | $0 | $0.03 |
Net income (in dollars per share) | $0.99 | $0.48 |
CASH DIVIDENDS DECLARED PER SHARE (in dollars per share) | $0.10 | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $123,669 | $59,595 |
OTHER COMPREHENSIVE INCOME: | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense of $1,808 and $1,287, respectively | 3,386 | 2,404 |
COMPREHENSIVE INCOME | $127,055 | $61,999 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense | $1,808 | $1,287 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH PROVIDED BY OPERATIONS: | ||
Net income | $123,669 | $59,595 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 90,564 | 70,873 |
Deferred income taxes | -7,541 | -1,489 |
Provision for pension and other postemployement benefits | 7,844 | 6,170 |
Share-based compensation expense | 5,190 | 7,547 |
Gain on disposals of property, plant and equipment | -513 | -1,110 |
Other postemployment benefit claims paid | -1,115 | -894 |
Contributions to pension plans | -375 | -6,448 |
Changes in current assets and liabilities: | ||
Receivables - trade and other | 42,053 | -39,090 |
Prepaid expenses and other current assets | 4,350 | 12,248 |
Accounts payable | 6,894 | -13,637 |
Accrued income taxes | 12,300 | 9,222 |
Deferred revenues | 1,163 | -13,502 |
Other current liabilities | -47,075 | -11,037 |
Net changes in other noncurrent assets and liabilities | 7,358 | 2,075 |
Net cash provided by operations | 244,766 | 80,523 |
CASH USED IN INVESTING ACTIVITIES: | ||
Capital expenditures | -514,265 | -532,518 |
Proceeds from disposals of property, plant and equipment | 1,680 | 6,600 |
Net cash used in investing activities | -512,585 | -525,918 |
CASH PROVIDED BY FINANCING ACTIVITIES: | ||
Proceeds from borrowings | 0 | 793,380 |
Dividends paid | -12,562 | 0 |
Debt issue costs | 0 | -687 |
Excess tax benefits (deficit) from share-based compensation | -1,981 | -563 |
Proceeds from exercise of share options | 0 | 810 |
Net cash provided by (used in) financing activities | -14,543 | 792,940 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -282,362 | 347,545 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 339,154 | 1,092,844 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $56,792 | $1,440,389 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Total | Class A ordinary shares/ Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury shares [Member] | Accumulated other comprehensive income (loss) [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $4,893,761 | $15,597 | $1,407,031 | $3,619,540 | ($5,962) | ($142,445) |
Balance (in shares) at Dec. 31, 2013 | 124,237 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | -3,850 | 2 | 529 | -4,381 | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 78 | |||||
Share-based compensation | 5,717 | 5,717 | ||||
Excess tax benefit (deficit) from share-based compensation plans | -563 | -563 | ||||
Retirement benefit adjustments, net of taxes | 2,404 | 2,404 | ||||
Other | -287 | -287 | ||||
Net income | 59,595 | 59,595 | ||||
Balance at Mar. 31, 2014 | 4,956,777 | 15,599 | 1,412,714 | 3,679,135 | -10,343 | -140,328 |
Balance (in shares) at Mar. 31, 2014 | 124,315 | |||||
Balance at Dec. 31, 2014 | 4,691,399 | 15,604 | 1,436,910 | 3,466,993 | -7,990 | -220,118 |
Balance (in shares) at Dec. 31, 2014 | 124,564 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | -3,326 | 137 | -3,463 | |||
Net shares issued (acquired) under share-based compensation plans (in shares) | 199 | |||||
Share-based compensation | 5,761 | 5,761 | ||||
Excess tax benefit (deficit) from share-based compensation plans | -1,981 | -1,981 | ||||
Retirement benefit adjustments, net of taxes | 3,386 | 3,386 | ||||
Dividends | -12,562 | -12,562 | ||||
Net income | 123,669 | 123,669 | ||||
Balance at Mar. 31, 2015 | $4,806,346 | $15,741 | $1,440,690 | $3,578,100 | ($11,453) | ($216,732) |
Balance (in shares) at Mar. 31, 2015 | 124,763 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | ||
Retirement benefit adjustments, taxes | $1,808 | $1,287 |
Basis_of_Presentation_and_Natu
Basis of Presentation and Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations |
The financial statements included in this Form 10-Q are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc ("Rowan plc") and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation. Unless the context otherwise requires, the terms “Company,” “we,” “us” and “our” are used to refer to Rowan plc and its consolidated subsidiaries. | |
The financial statements included in this Form 10-Q have been prepared without audit in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information 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. Management believes the accompanying 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. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
We are a global provider of offshore oil and gas contract drilling services utilizing a fleet of 30 self-elevating mobile offshore “jack-up” drilling units and four ultra-deepwater drillships. Historically, our primary focus has been on high-specification and premium jack-up rigs, which our customers use for exploratory and development drilling and associated drilling services. In 2009, we began executing a new strategic plan that included divesting non-core assets and investing in ultra-deepwater assets, with a goal of balancing our earnings from jack-ups and deepwater rigs over the long term. In 2011 and 2012 we entered into contracts for the construction of four ultra-deepwater drillships, and during 2014, we took delivery of the first three drillships: the Rowan Renaissance, which commenced drilling operations offshore West Africa in April 2014; the Rowan Resolute, which commenced operations in the United States Gulf of Mexico (US GOM) in October 2014; and the Rowan Reliance, which commenced operations in the US GOM in February 2015. Our fourth drillship, the Rowan Relentless, was delivered in late March 2015 and is expected to commence operations in the US GOM in July 2015. | |
The Company conducts offshore drilling operations in various markets throughout the world including the US GOM, the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East, West and North Africa, Southeast Asia and Trinidad. | |
The financial information as of December 31, 2014, presented in this report does not constitute the Company's statutory accounts for that year within the meaning of the U.K. Companies Act 2006 (the "Companies Act"). Statutory accounts as required by the Companies Act for the year ended December 31, 2014, have been delivered to the Registrar of Companies in the U.K. The auditors reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Sections 498(2) or (3) of the Companies Act. | |
New Accounting Standards – In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. As proposed, we would be required to adopt the new standard in annual and interim reports for periods beginning January 1, 2017; however, in April 2015, the FASB voted for a one-year deferral of the effective date. We are currently evaluating the potential effect of the new standard. | |
In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. We will be required to adopt the new standard in annual and interim reports beginning January 1, 2016. We do not expect adoption of the new standard will have a material effect on our financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Debt issuance costs incurred before the associated funding is received (i.e., the debt liability) should be reported on the balance sheet as deferred charges until the debt is recognized on the balance sheet. We will be required to adopt the new standard in annual and interim reports retrospectively for periods beginning January 1, 2016. We do not expect adoption of the new standard will have a material effect on our financial statements. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Earnings Per Share | Earnings Per Share | |||||
A reconciliation of basic and diluted shares follows (in thousands): | ||||||
Three months ended March 31, | ||||||
2015 | 2014 | |||||
Average common shares outstanding | 124,294 | 123,707 | ||||
Effect of dilutive securities - share-based compensation | 806 | 970 | ||||
Average shares for diluted computations | 125,100 | 124,677 | ||||
There were no adjustments to net income required for purposes of computing diluted earnings per share. | ||||||
Share options, appreciation rights and restricted share units granted under share-based compensation plans are antidilutive and excluded from diluted earnings per share when the hypothetical number of shares that could be repurchased under the treasury stock method exceeds the number of shares to be exercised. Antidilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in thousands): | ||||||
Three months ended March 31, | ||||||
2015 | 2014 | |||||
Share options and appreciation rights | 1,456 | 1,108 | ||||
Restricted share units | 1,533 | — | ||||
Total potentially dilutive shares | 2,989 | 1,108 | ||||
Pension_and_Other_Postemployme
Pension and Other Postemployment Benefits | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ||||||||
Pension and Other Postemployment Benefits | Pension and Other Postemployment Benefits | |||||||
The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees. | ||||||||
Net periodic pension cost recognized during the periods included the following components (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 4,189 | $ | 3,620 | ||||
Interest cost | 7,860 | 8,092 | ||||||
Expected return on plan assets | (10,414 | ) | (10,251 | ) | ||||
Amortization of net loss | 6,311 | 4,231 | ||||||
Amortization of prior service credit | (1,115 | ) | (1,110 | ) | ||||
Total net pension cost | $ | 6,831 | $ | 4,582 | ||||
Other postemployment benefit cost recognized during the periods included the following components (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 320 | $ | 267 | ||||
Interest cost | 695 | 757 | ||||||
Amortization of net loss | (2 | ) | (39 | ) | ||||
Amortization of prior service credit | — | (8 | ) | |||||
Total other postemployment benefit cost | $ | 1,013 | $ | 977 | ||||
During the three months ended March 31, 2015, the Company contributed $1.5 million to its pension and other postemployment benefit plans and expects to make additional contributions to such plans totaling approximately $24.8 million for the remainder of 2015. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities |
Uncertain tax positions – In 2009, the Company recognized certain tax benefits as a result of applying the facts of a third-party tax case to the Company’s situation. That case provided a more favorable tax treatment for certain foreign contracts entered into in prior years. Our position was challenged by the U.S. Internal Revenue Service. We appealed their findings and reached a settlement agreement in September 2014 with respect to three of the four years under review in the amount of approximately $36 million, including interest, which we collected in October 2014. A remaining year continues to be under examination. We plan to vigorously defend our position. | |
Other matters – On March 22, 2015, while working for Cobalt International Energy, Inc. (“Cobalt”) in the Gulf of Mexico, the Rowan Reliance drillship experienced a loss of seal in the riser connection system which resulted in a spill of approximately 2,200 barrels of synthetic-oil based mud. The drillship commenced operations on the well on February 1, 2015, and the well was plugged and abandoned on April 6, 2015. On April 22, 2015, we commenced drilling the next well under our existing contract. We had seven days of zero rate in the first quarter (with associated lost revenues of approximately $4 million). We are in discussions with Cobalt to resolve this matter. It is reasonably possible that a resolution of the matter could result in the loss of day rate or a reduced operating rate for a period of time. Such additional lost revenue cannot be determined with certainty at this time but is not expected to have a material impact on our financial condition. | |
On April 21, 2015 the Bureau of Safety and Environmental Enforcement (BSEE) informed the Company it will conduct a Quality Control - Failure Incident Team (QC-FIT) evaluation of the incident, and the Company is cooperating with BSEE in the evaluation. | |
We periodically employ letters of credit in the normal course of our business, and had outstanding letters of credit of approximately $24.5 million at March 31, 2015. | |
We are involved in various other legal proceedings incidental to our business and are vigorously defending our position in all such matters. Although the outcome of such proceedings cannot be predicted with certainty, we do not expect resolution of these matters to have a material effect on our financial position, results of operations or cash flows. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation |
On February 26, 2015, the Company granted restricted share units (RSUs) to employees and officers for annual incentive awards pursuant to our long-term incentive plan with a grant-date fair value aggregating $22.5 million. The awards vest ratably over three years except to the extent they may vest earlier under our retirement policy. The aggregate fair value, net of estimated forfeitures, was $21.2 million, which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date. | |
Each RSU awarded to employees is granted in tandem with a corresponding dividend equivalent which entitles the employee to receive an amount in cash equal to any cash dividends paid by the Company with respect to the underlying shares. Dividend equivalents are payable as and when the RSUs vest. Any dividend equivalent amounts are forfeited if the corresponding RSUs are forfeited or do not vest. The Company began paying dividends in May 2014. | |
Additionally, on February 26, 2015, the Company granted to certain members of management performance units (P-Units) that have a target value of $100 per unit. The amount ultimately earned with respect to the P-Units will depend on the Company’s total shareholder return (TSR) ranking compared to a group of peer companies over a three-year period ending December 31, 2017, and could range from zero to $200 per unit depending on performance. Twenty-five percent of the P-Units’ value is determined by the Company’s relative TSR ranking for each one-year period ended December 31, 2015, 2016, and 2017, respectively, and 25% of the P-Units’ value is determined by the relative TSR ranking for the three-year period ending December 31, 2017. Vesting of awards and any payment with respect to the P-Units would not occur until the third anniversary following the grant date and would be settled in cash. | |
The grant-date fair value of the P-Units was estimated to be $9.0 million. Fair value was estimated using a Monte Carlo simulation model, which considers the probabilities of the Company’s TSR ranking at the end of each performance period and the amount of the payout at each rank to determine the probability-weighted expected payout. The Company uses liability accounting to account for the P-Units. Compensation is recognized on a straight-line basis over a maximum period of three years from the grant date and is adjusted for changes in fair value through the vesting date. | |
Estimated liabilities for all outstanding P-Unit obligations are classified between current and long-term liabilities and aggregated $9.6 million and $11.6 million, at March 31, 2015, and December 31, 2014, respectively. | |
At March 31, 2015, the Company had approximately $60.4 million of estimated unrecognized share-based compensation, which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.1 years. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by US GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are: | ||||||||||||||||
• | Level 1 – Quoted prices for identical instruments in active markets; | |||||||||||||||
• | Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example. | |||||||||||||||
The applicable level within the fair value hierarchy is the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||||
Estimated fair value measurements | ||||||||||||||||
Carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant other unobservable inputs (Level 3) | |||||||||||||
March 31, 2015: | ||||||||||||||||
Assets - cash equivalents | $ | 30,084 | $ | 30,084 | $ | — | $ | — | ||||||||
Other assets | 14,945 | 14,945 | — | — | ||||||||||||
December 31, 2014: | ||||||||||||||||
Assets - cash equivalents | $ | 314,570 | $ | 314,570 | $ | — | $ | — | ||||||||
Other assets | 16,304 | 16,304 | — | — | ||||||||||||
At March 31, 2015 and December 31, 2014, we held Egyptian pounds in the amount of $14.9 million and $16.3 million, respectively, which are classified as other noncurrent assets. We ceased drilling operations in Egypt in 2014, and to date we have been unable to convert, utilize or repatriate such funds. | ||||||||||||||||
Trade receivables and trade payables, which are also required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities. | ||||||||||||||||
Other Fair Value Measurements | ||||||||||||||||
Those financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. Estimated fair values and related carrying values of our long-term debt securities aggregated $2.694 billion and $2.807, respectively, at March 31, 2015, compared to $2.755 billion and $2.807, respectively, at December 31, 2014. Fair values of the Company’s debt securities were provided by a broker who makes a market in our debt securities and were measured using a market-approach valuation technique. Fair value was determined by adding a spread based on actual trades for that security (or a trader quote where actual trades were unavailable) to the applicable benchmark Treasury security with a comparable maturity in order to derive a current yield. The yield is then used to determine a price given the individual security’s coupon rate and maturity. Such inputs are considered “significant other observable inputs” which are categorized as Level 2 inputs in the fair value hierarchy. |
Shareholders_Equity_Notes
Shareholders' Equity (Notes) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Shareholders' Equity | Shareholders' Equity | |||||||
In February 2015, the Company issued 1.1 million shares of common stock, $0.125 par value per share, in a noncash transaction. The shares were immediately transferred to an affiliated employee benefit trust for use in connection with the Company's share-based employee incentive plan. Shares held by the Company's employee benefit trust are not eligible to vote or to receive dividends and are classified as treasury shares in the condensed consolidated balance sheet. | ||||||||
The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income for the period. The amounts reclassified are included in the computation of net periodic pension costs. (See Note 3 – Pension and Other Postemployment Benefits.) Amounts in parentheses are charges against income (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||||||||
Amortization of net loss | $ | (6,309 | ) | $ | (4,811 | ) | ||
Amortization of prior service credit | 1,115 | 1,120 | ||||||
Total before income taxes | (5,194 | ) | (3,691 | ) | ||||
Income tax benefit | 1,808 | 1,287 | ||||||
Total reclassifications for the period, net of income taxes | $ | (3,386 | ) | $ | (2,404 | ) | ||
On January 29, 2015, the Board of Directors approved a quarterly cash dividend of $0.10 per share, paid on March 3, 2015, to shareholders of record at the close of business on February 9, 2015. | ||||||||
On May 1, 2015, the Board of Directors approved a quarterly cash dividend of $0.10 per share, payable on May 26, 2015, to shareholders of record at the close of business on May 12, 2015. |
Other_Financial_Statement_Disc
Other Financial Statement Disclosures | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Financial Statement Disclosures [Abstract] | ||||||||
Other Financial Statement Disclosures | Other Financial Statement Disclosures | |||||||
Accounts Receivable – The following table sets forth the components of Receivables - trade and other (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Trade | $ | 486,265 | $ | 524,712 | ||||
Income tax | 5,186 | 6,315 | ||||||
Other | 11,700 | 14,177 | ||||||
Total receivables - trade and other | $ | 503,151 | $ | 545,204 | ||||
Discontinued Operations – In February 2014, the Company sold a land rig it retained in the 2011 sale of its manufacturing operations. The net carrying value was $4.1 million, consisting of a $24.2 million asset previously classified as assets of discontinued operations, less $20.1 million of deferred revenues previously classified as liabilities of discontinued operations. The Company received $6.0 million in cash resulting in a $4.0 million gain, net of tax effects, which was recognized in the quarter ended March 31, 2014. | ||||||||
Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $57.1 million and $39.0 million at March 31, 2015 and 2014, respectively. Interest capitalized in connection with rig construction projects totaled $7.5 million and $17.5 million in the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Income Taxes – In accordance with US GAAP for interim reporting, the Company estimates its full-year effective tax rate and applies this rate to its year-to-date pretax income. In addition, the Company separately calculates the tax impact of unusual items, if any. We provide for income taxes based upon the tax laws and rates in effect in the countries in which we conduct operations. The amounts of our provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Our overall effective tax rate may therefore vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations and other factors. | ||||||||
Our effective tax rate was 12.2% for the three months ended March 31, 2015, compared to 0.5% for the three months ended March 31, 2014. The higher effective rate for the current-year period was due to additional income in high-tax jurisdictions and limitations on interest expense deductions in the U.S. | ||||||||
The Company has not provided for deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. entities under Rowan Companies, Inc. (RCI), except for a portion of its Saudi Arabia operating entity that is expected to be distributed in 2015. It is the Company’s policy and intention, except as noted above, to permanently reinvest outside the U.S. the earnings of non-U.S. entities directly or indirectly owned by RCI. Generally, earnings of non-U.K. entities in which RCI does not have a direct or indirect ownership interest can be distributed to the Company without imposition of either U.K. or local country tax. | ||||||||
In December 2014, the U.K. Treasury released a draft proposal that would impose tax on groups that use certain tax planning techniques that are perceived as diverting profits from the U.K. The Diverted Profit Tax rule was included in the 2015 Finance Bill and on March 26, 2015 the legislation received Royal Assent with an effective date of April 1, 2015. We currently do not know what the financial impact is from this legislation but do not believe it will have a material impact on our financial statements. | ||||||||
Litigation Settlement – In the first quarter of 2014, the Company settled its litigation with the owners and operators of a tanker that collided with the Rowan EXL I in May 2012 and received $20.9 million in cash as compensation for damages incurred in 2012 for repair costs to and loss of use of the rig. Such amount was recognized as a component of operating income in the three months ended March 31, 2014. |
Guarantees_of_Registered_Secur
Guarantees of Registered Securities | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Guarantees of Registered Securities | Guarantees of Registered Securities | |||||||||||||||||||
Rowan plc and its 100%-owned subsidiary, RCI, have entered into agreements providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan plc of the prompt payment when due of any amount owed to the holders of RCI’s 5% Senior Notes due 2017, 7.875% Senior Notes due 2019, 4.875% Senior Notes due 2022, 4.75% Senior Notes due 2024, 5.4% Senior Notes due 2042, and 5.85% Senior Notes due 2044 (the “Senior Notes”). | ||||||||||||||||||||
The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc’s guarantee of the Senior Notes and reflects the corporate ownership structure as of March 31, 2015. Financial information for the three months ended March 31, 2014, has been recast to reflect changes to the corporate ownership structure that occurred in the third quarter of 2014 and is presented as though the structure at March 31, 2015, was in place at January 1, 2014. | ||||||||||||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 | ||||||||||
Receivables - trade and other | 76 | 5,617 | 497,458 | — | 503,151 | |||||||||||||||
Other current assets | 212 | 43,565 | 8,270 | — | 52,047 | |||||||||||||||
Total current assets | 1,183 | 52,128 | 558,679 | — | 611,990 | |||||||||||||||
Property, plant and equipment - gross | — | 550,095 | 8,765,844 | — | 9,315,939 | |||||||||||||||
Less accumulated depreciation and amortization | — | 228,765 | 1,223,148 | — | 1,451,913 | |||||||||||||||
Property, plant and equipment - net | — | 321,330 | 7,542,696 | — | 7,864,026 | |||||||||||||||
Investments in subsidiaries | 4,754,045 | 6,196,899 | — | (10,950,944 | ) | — | ||||||||||||||
Due from affiliates | 57,359 | 1,556,471 | 246,421 | (1,860,251 | ) | — | ||||||||||||||
Other assets | — | 17,792 | 18,156 | — | 35,948 | |||||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 | ||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable - trade | $ | 229 | $ | 14,576 | $ | 103,268 | $ | — | $ | 118,073 | ||||||||||
Deferred revenues | — | — | 37,352 | — | 37,352 | |||||||||||||||
Accrued liabilities | 321 | 85,130 | 77,357 | — | 162,808 | |||||||||||||||
Total current liabilities | 550 | 99,706 | 217,977 | — | 318,233 | |||||||||||||||
Long-term debt | — | 2,807,114 | — | — | 2,807,114 | |||||||||||||||
Due to affiliates | 1,081 | 245,024 | 1,614,146 | (1,860,251 | ) | — | ||||||||||||||
Other liabilities | 4,610 | 306,343 | 62,420 | — | 373,373 | |||||||||||||||
Deferred income taxes - net | — | 517,836 | 162,544 | (473,482 | ) | 206,898 | ||||||||||||||
Shareholders' equity | 4,806,346 | 4,168,597 | 6,308,865 | (10,477,462 | ) | 4,806,346 | ||||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 45,909 | $ | 48,580 | $ | 244,665 | $ | — | $ | 339,154 | ||||||||||
Receivables - trade and other | 26 | 4,317 | 540,861 | — | 545,204 | |||||||||||||||
Other current assets | 424 | 47,986 | 8,328 | — | 56,738 | |||||||||||||||
Total current assets | 46,359 | 100,883 | 793,854 | — | 941,096 | |||||||||||||||
Property, plant and equipment - gross | — | 610,063 | 8,190,119 | — | 8,800,182 | |||||||||||||||
Less accumulated depreciation and amortization | — | 271,293 | 1,096,677 | — | 1,367,970 | |||||||||||||||
Property, plant and equipment - net | — | 338,770 | 7,093,442 | — | 7,432,212 | |||||||||||||||
Investments in subsidiaries | 4,624,874 | 5,863,509 | — | (10,488,383 | ) | — | ||||||||||||||
Due from affiliates | 36,586 | 1,412,860 | 71,867 | (1,521,313 | ) | — | ||||||||||||||
Other assets | — | 18,103 | 19,781 | — | 37,884 | |||||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 | ||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable - trade | $ | 912 | $ | 8,576 | $ | 93,285 | $ | — | $ | 102,773 | ||||||||||
Deferred revenues | — | — | 36,189 | — | 36,189 | |||||||||||||||
Accrued liabilities | 400 | 100,167 | 93,692 | — | 194,259 | |||||||||||||||
Total current liabilities | 1,312 | 108,743 | 223,166 | — | 333,221 | |||||||||||||||
Long-term debt | — | 2,807,324 | — | — | 2,807,324 | |||||||||||||||
Due to affiliates | 9,282 | 45,457 | 1,466,574 | (1,521,313 | ) | — | ||||||||||||||
Other liabilities | 5,826 | 312,575 | 49,865 | — | 368,266 | |||||||||||||||
Deferred income taxes - net | — | 507,281 | 167,094 | (463,393 | ) | 210,982 | ||||||||||||||
Shareholders' equity | 4,691,399 | 3,952,745 | 6,072,245 | (10,024,990 | ) | 4,691,399 | ||||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Income Statements | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 15,046 | $ | 547,351 | $ | (15,358 | ) | $ | 547,039 | |||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||
Direct operating costs (excluding items below) | — | 1,697 | 268,291 | (14,254 | ) | 255,734 | ||||||||||||||
Depreciation and amortization | — | 4,580 | 84,861 | 249 | 89,690 | |||||||||||||||
Selling, general and administrative | 4,212 | 642 | 24,085 | (1,353 | ) | 27,586 | ||||||||||||||
Gain on disposals of property and equipment | — | (342 | ) | (171 | ) | — | (513 | ) | ||||||||||||
Total costs and expenses | 4,212 | 6,577 | 377,066 | (15,358 | ) | 372,497 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS | (4,212 | ) | 8,469 | 170,285 | — | 174,542 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense, net of interest capitalized | — | (32,746 | ) | (2,449 | ) | 2,449 | (32,746 | ) | ||||||||||||
Interest income | 134 | 2,467 | 3 | (2,449 | ) | 155 | ||||||||||||||
Other - net | 5,604 | (5,523 | ) | (1,122 | ) | — | (1,041 | ) | ||||||||||||
Total other income (expense) - net | 5,738 | (35,802 | ) | (3,568 | ) | — | (33,632 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,526 | (27,333 | ) | 166,717 | — | 140,910 | ||||||||||||||
Provision for income taxes | — | 390 | 28,749 | (11,898 | ) | 17,241 | ||||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,526 | (27,723 | ) | 137,968 | 11,898 | 123,669 | ||||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | — | — | — | — | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 122,143 | 22,078 | — | (144,221 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 | ||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Income Statements | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 16,162 | $ | 376,494 | $ | (15,054 | ) | $ | 377,602 | |||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||
Direct operating costs (excluding items below) | — | 3,156 | 232,267 | (15,054 | ) | 220,369 | ||||||||||||||
Depreciation and amortization | — | 4,562 | 66,311 | — | 70,873 | |||||||||||||||
Selling, general and administrative | 5,820 | 1,229 | 22,826 | — | 29,875 | |||||||||||||||
Loss on disposals of property and equipment | — | 17 | 786 | — | 803 | |||||||||||||||
Litigation settlement | — | — | (20,875 | ) | — | (20,875 | ) | |||||||||||||
Total costs and expenses | 5,820 | 8,964 | 301,315 | (15,054 | ) | 301,045 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS | (5,820 | ) | 7,198 | 75,179 | — | 76,557 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense, net of interest capitalized | — | (20,960 | ) | (240 | ) | 240 | (20,960 | ) | ||||||||||||
Interest income | 109 | 447 | 271 | (240 | ) | 587 | ||||||||||||||
Other - net | 3,500 | (3,494 | ) | (357 | ) | — | (351 | ) | ||||||||||||
Total other income (expense) - net | 3,609 | (24,007 | ) | (326 | ) | — | (20,724 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (2,211 | ) | (16,809 | ) | 74,853 | — | 55,833 | |||||||||||||
(Benefit) provision for income taxes | — | (8,949 | ) | 16,406 | (7,176 | ) | 281 | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (2,211 | ) | (7,860 | ) | 58,447 | 7,176 | 55,552 | |||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | 4,043 | — | — | 4,043 | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 61,806 | 25,380 | — | (87,186 | ) | — | ||||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 | |||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 | ||||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 3,386 | — | (3,386 | ) | 3,386 | ||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 127,055 | $ | (2,259 | ) | $ | 137,968 | $ | (135,709 | ) | $ | 127,055 | ||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 | |||||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,404 | 2,404 | — | (2,404 | ) | 2,404 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 61,999 | $ | 23,967 | $ | 58,447 | $ | (82,414 | ) | $ | 61,999 | |||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Consolidating Statements of Cash Flows | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (3,615 | ) | $ | (19,741 | ) | $ | 266,064 | $ | 2,058 | $ | 244,766 | ||||||||
INVESTING ACTIVITIES: | ||||||||||||||||||||
Property, plant and equipment additions | — | (1,758 | ) | (512,507 | ) | — | (514,265 | ) | ||||||||||||
Proceeds from disposals of property, plant and equipment | — | 1,198 | 482 | — | 1,680 | |||||||||||||||
Net cash used in investing activities | — | (560 | ) | (512,025 | ) | — | (512,585 | ) | ||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||
Advances (to) from affiliates | (28,837 | ) | (23,352 | ) | 54,247 | (2,058 | ) | — | ||||||||||||
Dividends paid | (12,562 | ) | — | — | — | (12,562 | ) | |||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (1,981 | ) | — | — | (1,981 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (41,399 | ) | (25,333 | ) | 54,247 | (2,058 | ) | (14,543 | ) | |||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (45,014 | ) | (45,634 | ) | (191,714 | ) | — | (282,362 | ) | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,909 | 48,580 | 244,665 | — | 339,154 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Consolidating Statements of Cash Flows | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 67,801 | $ | 287,495 | $ | 290,409 | $ | (565,182 | ) | $ | 80,523 | |||||||||
INVESTING ACTIVITIES: | ||||||||||||||||||||
Property, plant and equipment additions | — | (4,236 | ) | (528,282 | ) | — | (532,518 | ) | ||||||||||||
Proceeds from disposals of property, plant and equipment | — | 6,007 | 593 | — | 6,600 | |||||||||||||||
Investments in consolidated subsidiaries | — | (74,305 | ) | — | 74,305 | — | ||||||||||||||
Net cash used in investing activities | — | (72,534 | ) | (527,689 | ) | 74,305 | (525,918 | ) | ||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||
Advances (to) from affiliates | (16,893 | ) | (355,605 | ) | (42,684 | ) | 415,182 | — | ||||||||||||
Contributions from parent | — | — | 74,305 | (74,305 | ) | — | ||||||||||||||
Proceeds from borrowings | — | 793,380 | — | — | 793,380 | |||||||||||||||
Debt issue costs | — | (687 | ) | — | — | (687 | ) | |||||||||||||
Dividends paid | — | (75,000 | ) | (75,000 | ) | 150,000 | — | |||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (563 | ) | — | — | (563 | ) | |||||||||||||
Proceeds from exercise of share options | 810 | — | — | — | 810 | |||||||||||||||
Net cash provided by (used in) financing activities | (16,083 | ) | 361,525 | (43,379 | ) | 490,877 | 792,940 | |||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 51,718 | 576,486 | (280,659 | ) | — | 347,545 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 64,292 | 92,116 | 936,436 | — | 1,092,844 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 116,010 | $ | 668,602 | $ | 655,777 | $ | — | $ | 1,440,389 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Reconciliation of Basic and Diluted Earnings per Share | A reconciliation of basic and diluted shares follows (in thousands): | |||||
Three months ended March 31, | ||||||
2015 | 2014 | |||||
Average common shares outstanding | 124,294 | 123,707 | ||||
Effect of dilutive securities - share-based compensation | 806 | 970 | ||||
Average shares for diluted computations | 125,100 | 124,677 | ||||
Antidilutive Securities Excluded From Earnings per Share | could potentially dilute earnings per share in the future, are set forth below (in thousands): | |||||
Three months ended March 31, | ||||||
2015 | 2014 | |||||
Share options and appreciation rights | 1,456 | 1,108 | ||||
Restricted share units | 1,533 | — | ||||
Total potentially dilutive shares | 2,989 | 1,108 | ||||
Pension_and_Other_Postemployme1
Pension and Other Postemployment Benefits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ||||||||
Summary of Net Periodic Pension and Other Postemployment Benefit Costs | Net periodic pension cost recognized during the periods included the following components (in thousands): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 4,189 | $ | 3,620 | ||||
Interest cost | 7,860 | 8,092 | ||||||
Expected return on plan assets | (10,414 | ) | (10,251 | ) | ||||
Amortization of net loss | 6,311 | 4,231 | ||||||
Amortization of prior service credit | (1,115 | ) | (1,110 | ) | ||||
Total net pension cost | $ | 6,831 | $ | 4,582 | ||||
Other postemployment benefit cost recognized during the periods included the following components (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Service cost | $ | 320 | $ | 267 | ||||
Interest cost | 695 | 757 | ||||||
Amortization of net loss | (2 | ) | (39 | ) | ||||
Amortization of prior service credit | — | (8 | ) | |||||
Total other postemployment benefit cost | $ | 1,013 | $ | 977 | ||||
Fair_Value_Measurements_Fair_V1
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||
Estimated fair value measurements | ||||||||||||||||
Carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant other unobservable inputs (Level 3) | |||||||||||||
March 31, 2015: | ||||||||||||||||
Assets - cash equivalents | $ | 30,084 | $ | 30,084 | $ | — | $ | — | ||||||||
Other assets | 14,945 | 14,945 | — | — | ||||||||||||
December 31, 2014: | ||||||||||||||||
Assets - cash equivalents | $ | 314,570 | $ | 314,570 | $ | — | $ | — | ||||||||
Other assets | 16,304 | 16,304 | — | — | ||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||||||||
Amortization of net loss | $ | (6,309 | ) | $ | (4,811 | ) | ||
Amortization of prior service credit | 1,115 | 1,120 | ||||||
Total before income taxes | (5,194 | ) | (3,691 | ) | ||||
Income tax benefit | 1,808 | 1,287 | ||||||
Total reclassifications for the period, net of income taxes | $ | (3,386 | ) | $ | (2,404 | ) |
Other_Financial_Statement_Disc1
Other Financial Statement Disclosures (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Financial Statement Disclosures [Abstract] | ||||||||
Components of Receivables - trade and other | The following table sets forth the components of Receivables - trade and other (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Trade | $ | 486,265 | $ | 524,712 | ||||
Income tax | 5,186 | 6,315 | ||||||
Other | 11,700 | 14,177 | ||||||
Total receivables - trade and other | $ | 503,151 | $ | 545,204 | ||||
Guarantees_of_Registered_Secur1
Guarantees of Registered Securities (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Guarantor Financial Statements | reflects the corporate ownership structure as of March 31, 2015. Financial information for the three months ended March 31, 2014, has been recast to reflect changes to the corporate ownership structure that occurred in the third quarter of 2014 and is presented as though the structure at March 31, 2015, was in place at January 1, 2014. | |||||||||||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 | ||||||||||
Receivables - trade and other | 76 | 5,617 | 497,458 | — | 503,151 | |||||||||||||||
Other current assets | 212 | 43,565 | 8,270 | — | 52,047 | |||||||||||||||
Total current assets | 1,183 | 52,128 | 558,679 | — | 611,990 | |||||||||||||||
Property, plant and equipment - gross | — | 550,095 | 8,765,844 | — | 9,315,939 | |||||||||||||||
Less accumulated depreciation and amortization | — | 228,765 | 1,223,148 | — | 1,451,913 | |||||||||||||||
Property, plant and equipment - net | — | 321,330 | 7,542,696 | — | 7,864,026 | |||||||||||||||
Investments in subsidiaries | 4,754,045 | 6,196,899 | — | (10,950,944 | ) | — | ||||||||||||||
Due from affiliates | 57,359 | 1,556,471 | 246,421 | (1,860,251 | ) | — | ||||||||||||||
Other assets | — | 17,792 | 18,156 | — | 35,948 | |||||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 | ||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable - trade | $ | 229 | $ | 14,576 | $ | 103,268 | $ | — | $ | 118,073 | ||||||||||
Deferred revenues | — | — | 37,352 | — | 37,352 | |||||||||||||||
Accrued liabilities | 321 | 85,130 | 77,357 | — | 162,808 | |||||||||||||||
Total current liabilities | 550 | 99,706 | 217,977 | — | 318,233 | |||||||||||||||
Long-term debt | — | 2,807,114 | — | — | 2,807,114 | |||||||||||||||
Due to affiliates | 1,081 | 245,024 | 1,614,146 | (1,860,251 | ) | — | ||||||||||||||
Other liabilities | 4,610 | 306,343 | 62,420 | — | 373,373 | |||||||||||||||
Deferred income taxes - net | — | 517,836 | 162,544 | (473,482 | ) | 206,898 | ||||||||||||||
Shareholders' equity | 4,806,346 | 4,168,597 | 6,308,865 | (10,477,462 | ) | 4,806,346 | ||||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 45,909 | $ | 48,580 | $ | 244,665 | $ | — | $ | 339,154 | ||||||||||
Receivables - trade and other | 26 | 4,317 | 540,861 | — | 545,204 | |||||||||||||||
Other current assets | 424 | 47,986 | 8,328 | — | 56,738 | |||||||||||||||
Total current assets | 46,359 | 100,883 | 793,854 | — | 941,096 | |||||||||||||||
Property, plant and equipment - gross | — | 610,063 | 8,190,119 | — | 8,800,182 | |||||||||||||||
Less accumulated depreciation and amortization | — | 271,293 | 1,096,677 | — | 1,367,970 | |||||||||||||||
Property, plant and equipment - net | — | 338,770 | 7,093,442 | — | 7,432,212 | |||||||||||||||
Investments in subsidiaries | 4,624,874 | 5,863,509 | — | (10,488,383 | ) | — | ||||||||||||||
Due from affiliates | 36,586 | 1,412,860 | 71,867 | (1,521,313 | ) | — | ||||||||||||||
Other assets | — | 18,103 | 19,781 | — | 37,884 | |||||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 | ||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable - trade | $ | 912 | $ | 8,576 | $ | 93,285 | $ | — | $ | 102,773 | ||||||||||
Deferred revenues | — | — | 36,189 | — | 36,189 | |||||||||||||||
Accrued liabilities | 400 | 100,167 | 93,692 | — | 194,259 | |||||||||||||||
Total current liabilities | 1,312 | 108,743 | 223,166 | — | 333,221 | |||||||||||||||
Long-term debt | — | 2,807,324 | — | — | 2,807,324 | |||||||||||||||
Due to affiliates | 9,282 | 45,457 | 1,466,574 | (1,521,313 | ) | — | ||||||||||||||
Other liabilities | 5,826 | 312,575 | 49,865 | — | 368,266 | |||||||||||||||
Deferred income taxes - net | — | 507,281 | 167,094 | (463,393 | ) | 210,982 | ||||||||||||||
Shareholders' equity | 4,691,399 | 3,952,745 | 6,072,245 | (10,024,990 | ) | 4,691,399 | ||||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Income Statements | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 15,046 | $ | 547,351 | $ | (15,358 | ) | $ | 547,039 | |||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||
Direct operating costs (excluding items below) | — | 1,697 | 268,291 | (14,254 | ) | 255,734 | ||||||||||||||
Depreciation and amortization | — | 4,580 | 84,861 | 249 | 89,690 | |||||||||||||||
Selling, general and administrative | 4,212 | 642 | 24,085 | (1,353 | ) | 27,586 | ||||||||||||||
Gain on disposals of property and equipment | — | (342 | ) | (171 | ) | — | (513 | ) | ||||||||||||
Total costs and expenses | 4,212 | 6,577 | 377,066 | (15,358 | ) | 372,497 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS | (4,212 | ) | 8,469 | 170,285 | — | 174,542 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense, net of interest capitalized | — | (32,746 | ) | (2,449 | ) | 2,449 | (32,746 | ) | ||||||||||||
Interest income | 134 | 2,467 | 3 | (2,449 | ) | 155 | ||||||||||||||
Other - net | 5,604 | (5,523 | ) | (1,122 | ) | — | (1,041 | ) | ||||||||||||
Total other income (expense) - net | 5,738 | (35,802 | ) | (3,568 | ) | — | (33,632 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,526 | (27,333 | ) | 166,717 | — | 140,910 | ||||||||||||||
Provision for income taxes | — | 390 | 28,749 | (11,898 | ) | 17,241 | ||||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,526 | (27,723 | ) | 137,968 | 11,898 | 123,669 | ||||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | — | — | — | — | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 122,143 | 22,078 | — | (144,221 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 | ||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Income Statements | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 16,162 | $ | 376,494 | $ | (15,054 | ) | $ | 377,602 | |||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||
Direct operating costs (excluding items below) | — | 3,156 | 232,267 | (15,054 | ) | 220,369 | ||||||||||||||
Depreciation and amortization | — | 4,562 | 66,311 | — | 70,873 | |||||||||||||||
Selling, general and administrative | 5,820 | 1,229 | 22,826 | — | 29,875 | |||||||||||||||
Loss on disposals of property and equipment | — | 17 | 786 | — | 803 | |||||||||||||||
Litigation settlement | — | — | (20,875 | ) | — | (20,875 | ) | |||||||||||||
Total costs and expenses | 5,820 | 8,964 | 301,315 | (15,054 | ) | 301,045 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS | (5,820 | ) | 7,198 | 75,179 | — | 76,557 | ||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense, net of interest capitalized | — | (20,960 | ) | (240 | ) | 240 | (20,960 | ) | ||||||||||||
Interest income | 109 | 447 | 271 | (240 | ) | 587 | ||||||||||||||
Other - net | 3,500 | (3,494 | ) | (357 | ) | — | (351 | ) | ||||||||||||
Total other income (expense) - net | 3,609 | (24,007 | ) | (326 | ) | — | (20,724 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (2,211 | ) | (16,809 | ) | 74,853 | — | 55,833 | |||||||||||||
(Benefit) provision for income taxes | — | (8,949 | ) | 16,406 | (7,176 | ) | 281 | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (2,211 | ) | (7,860 | ) | 58,447 | 7,176 | 55,552 | |||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | 4,043 | — | — | 4,043 | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 61,806 | 25,380 | — | (87,186 | ) | — | ||||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 | |||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 | ||||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 3,386 | — | (3,386 | ) | 3,386 | ||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 127,055 | $ | (2,259 | ) | $ | 137,968 | $ | (135,709 | ) | $ | 127,055 | ||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 | |||||||||
OTHER COMPREHENSIVE INCOME: | ||||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,404 | 2,404 | — | (2,404 | ) | 2,404 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 61,999 | $ | 23,967 | $ | 58,447 | $ | (82,414 | ) | $ | 61,999 | |||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Consolidating Statements of Cash Flows | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (3,615 | ) | $ | (19,741 | ) | $ | 266,064 | $ | 2,058 | $ | 244,766 | ||||||||
INVESTING ACTIVITIES: | ||||||||||||||||||||
Property, plant and equipment additions | — | (1,758 | ) | (512,507 | ) | — | (514,265 | ) | ||||||||||||
Proceeds from disposals of property, plant and equipment | — | 1,198 | 482 | — | 1,680 | |||||||||||||||
Net cash used in investing activities | — | (560 | ) | (512,025 | ) | — | (512,585 | ) | ||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||
Advances (to) from affiliates | (28,837 | ) | (23,352 | ) | 54,247 | (2,058 | ) | — | ||||||||||||
Dividends paid | (12,562 | ) | — | — | — | (12,562 | ) | |||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (1,981 | ) | — | — | (1,981 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (41,399 | ) | (25,333 | ) | 54,247 | (2,058 | ) | (14,543 | ) | |||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (45,014 | ) | (45,634 | ) | (191,714 | ) | — | (282,362 | ) | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,909 | 48,580 | 244,665 | — | 339,154 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 | ||||||||||
Rowan Companies plc and Subsidiaries | ||||||||||||||||||||
Consolidating Statements of Cash Flows | ||||||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | ||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 67,801 | $ | 287,495 | $ | 290,409 | $ | (565,182 | ) | $ | 80,523 | |||||||||
INVESTING ACTIVITIES: | ||||||||||||||||||||
Property, plant and equipment additions | — | (4,236 | ) | (528,282 | ) | — | (532,518 | ) | ||||||||||||
Proceeds from disposals of property, plant and equipment | — | 6,007 | 593 | — | 6,600 | |||||||||||||||
Investments in consolidated subsidiaries | — | (74,305 | ) | — | 74,305 | — | ||||||||||||||
Net cash used in investing activities | — | (72,534 | ) | (527,689 | ) | 74,305 | (525,918 | ) | ||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||
Advances (to) from affiliates | (16,893 | ) | (355,605 | ) | (42,684 | ) | 415,182 | — | ||||||||||||
Contributions from parent | — | — | 74,305 | (74,305 | ) | — | ||||||||||||||
Proceeds from borrowings | — | 793,380 | — | — | 793,380 | |||||||||||||||
Debt issue costs | — | (687 | ) | — | — | (687 | ) | |||||||||||||
Dividends paid | — | (75,000 | ) | (75,000 | ) | 150,000 | — | |||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (563 | ) | — | — | (563 | ) | |||||||||||||
Proceeds from exercise of share options | 810 | — | — | — | 810 | |||||||||||||||
Net cash provided by (used in) financing activities | (16,083 | ) | 361,525 | (43,379 | ) | 490,877 | 792,940 | |||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 51,718 | 576,486 | (280,659 | ) | — | 347,545 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 64,292 | 92,116 | 936,436 | — | 1,092,844 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 116,010 | $ | 668,602 | $ | 655,777 | $ | — | $ | 1,440,389 | ||||||||||
Basis_of_Presentation_and_Natu1
Basis of Presentation and Nature of Operations (Details) | 3 Months Ended |
Mar. 31, 2015 | |
drilling_unit | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of fleet of self-elevating mobile offshore jack-up drilling units | 30 |
Number of Drillships | 4 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Average common shares outstanding (in shares) | 124,294 | 123,707 |
Effect of dilutive securities - share-based compensation (in shares) | 806 | 970 |
Average shares for diluted computations | 125,100 | 124,677 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 2,989 | 1,108 |
Share Options and Appreciation Rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 1,456 | 1,108 |
Nonvested restricted shares and restricted share units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 1,533 | 0 |
Pension_and_Other_Postemployme2
Pension and Other Postemployment Benefits (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to pension and other postemployment benefit plans | $1,500,000 | |
Future contributions to pension and other postemployment benefit plans | 24,800,000 | |
Defined Benefit Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4,189,000 | 3,620,000 |
Interest cost | 7,860,000 | 8,092,000 |
Expected return on plan assets | -10,414,000 | -10,251,000 |
Amortization of net loss | 6,311,000 | 4,231,000 |
Amortization of prior service credit | -1,115,000 | -1,110,000 |
Total net pension cost and other postemployment benefit cost | 6,831,000 | 4,582,000 |
Other Postemployment Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 320,000 | 267,000 |
Interest cost | 695,000 | 757,000 |
Amortization of net loss | -2,000 | -39,000 |
Amortization of prior service credit | 0 | -8,000 |
Total net pension cost and other postemployment benefit cost | $1,013,000 | $977,000 |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 22, 2015 | Sep. 30, 2014 | Mar. 31, 2015 |
bbl | |||
Oil and Gas Delivery Commitments and Contracts [Line Items] | |||
Settlement agreement, number of years | 3 years | ||
Number of years under review | 4 years | ||
Number of barrels spilled | 2,200 | ||
Number of days at zero rate | 7 days | ||
Lost revenue | $4 | ||
Outstanding letters of credit | 24.5 | ||
Current Income Tax Receivable [Member] | |||
Oil and Gas Delivery Commitments and Contracts [Line Items] | |||
Tax benefits recognized from settlement | 36 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Feb. 26, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $60,400,000 | ||
Compensation expense over a remaining weighted-average period | 2 years 1 month 6 days | ||
Restricted Stock Units and Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock granted | 22,500,000 | ||
Awards vesting period | 3 years | ||
Aggregate grant date fair value, net of estimated forfeitures | 21,200,000 | ||
Requisite service period | 2 years 8 months 12 days | ||
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Target value of p-units granted during the period (in dollars per unit) | $100 | ||
Total shareholder return, Minimum payout (in dollars per unit) | 0 | ||
Total shareholder return, Maximum payout (in dollars per unit) | 200 | ||
Vesting percentage based on relative total shareholder return ranking on annual basis | 25.00% | ||
Vesting percentage of performance units periodically (in hundredths) | 25.00% | ||
Grant date fair value of P-Units | 9,000,000 | ||
Performance measurement period | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Fair Value of Long Term Liabilities | $9,600,000 | $11,600,000 |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | $14,900 | $16,300 |
Carrying value [Member] | Recurring basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 30,084 | 314,570 |
Other assets | 14,945 | 16,304 |
Estimate of Fair Value Measurement [Member] | Recurring basis [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 30,084 | 314,570 |
Other assets | 14,945 | 16,304 |
Estimate of Fair Value Measurement [Member] | Recurring basis [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Recurring basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Other assets | $0 | $0 |
Fair_Value_Measurements_Other_
Fair Value Measurements - Other Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | $2,807,114,000 | $2,807,324,000 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $2,694,000,000 | $2,755,000,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 29, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | 1-May-15 |
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | 0.125 | ||||
Dividends declared (in dollars per share) | $0.10 | $0.10 | $0 | ||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
New shares issued | 1,100 | ||||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Dividends declared (in dollars per share) | $0.10 |
Shareholders_Equity_Amounts_Re
Shareholders' Equity - Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense | $1,808 | $1,287 |
Total reclassifications for the period, net of income taxes | -3,386 | -2,404 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amortization of net loss | -6,309 | -4,811 |
Amortization of prior service credit | 1,115 | 1,120 |
Total before income taxes | -5,194 | -3,691 |
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense | 1,808 | 1,287 |
Total reclassifications for the period, net of income taxes | ($3,386) | ($2,404) |
Other_Financial_Statement_Disc2
Other Financial Statement Disclosures (Components of Receivables) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Financial Statement Disclosures [Abstract] | ||
Trade | $486,265 | $524,712 |
Income tax | 5,186 | 6,315 |
Other | 11,700 | 14,177 |
Total receivables - trade and other | $503,151 | $545,204 |
Other_Financial_Statement_Disc3
Other Financial Statement Disclosures (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | |
Discontinued Operations | ||||
Net assets of discontinued operations | $0 | |||
Supplemental Cash Flow Information | ||||
Accrued capital expenditures | 57,100,000 | 39,000,000 | ||
Interest capitalized in connection with rig construction projects | 7,500,000 | 17,500,000 | ||
Income Taxes | ||||
Effective tax rate | 12.20% | 0.50% | ||
Litigation Settlement | ||||
Proceeds from litigation settlements | 20,900,000 | |||
Rowan land rig [Member] | ||||
Discontinued Operations | ||||
Net assets of discontinued operations | 4,100,000 | |||
Assets of discontinued operations | 24,200,000 | |||
Deferred revenues classified as liabilities of discontinued operations | 20,100,000 | |||
Proceeds from sale of rig | 6,000,000 | |||
Gain (loss) on disposals of property and equipment | $4,000,000 |
Guarantees_of_Registered_Secur2
Guarantees of Registered Securities (Narrative) (Details) (RCI (Issuer) [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary ownership percentage by parent | 100.00% |
Senior Notes due 2017 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 5.00% |
Senior Notes due 2019 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 7.88% |
Senior Notes due 2022 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 4.88% |
Senior Notes due 2024 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 4.75% |
Senior Notes due 2042 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 5.40% |
Senior Notes due 2044 [Member] | Unsecured debt [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate percentage | 5.85% |
Guarantees_of_Registered_Secur3
Guarantees of Registered Securities (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $56,792 | $1,440,389 | |
Receivables - trade and other | 503,151 | 545,204 | |
Other current assets | 52,047 | 56,738 | |
Assets of discontinued operations | 0 | ||
Total current assets | 611,990 | 941,096 | |
Property, plant and equipment - gross | 9,315,939 | 8,800,182 | |
Less accumulated depreciation and amortization | 1,451,913 | 1,367,970 | |
Property, plant and equipment - net | 7,864,026 | 7,432,212 | |
Investments in subsidiaries | 0 | 0 | |
Due from affiliates | 0 | 0 | |
Other assets | 35,948 | 37,884 | |
TOTAL ASSETS | 8,511,964 | 8,411,192 | |
CURRENT LIABILITIES: | |||
Accounts payable - trade | 118,073 | 102,773 | |
Deferred revenues | 37,352 | 36,189 | |
Accrued liabilities | 162,808 | 194,259 | |
Liabilities of discontinued operations | 0 | ||
Total current liabilities | 318,233 | 333,221 | |
Long-term debt | 2,807,114 | 2,807,324 | |
Due to affiliates | 0 | 0 | |
Other liabilities | 373,373 | 368,266 | |
Deferred income taxes - net | 206,898 | 210,982 | |
Shareholders' equity | 4,806,346 | 4,691,399 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,511,964 | 8,411,192 | |
Consolidating Income Statements | |||
REVENUES | 547,039 | 377,602 | |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 255,734 | 220,369 | |
Depreciation and amortization | 89,690 | 70,873 | |
Selling, general and administrative | 27,586 | 29,875 | |
Loss (gain) on disposals of property and equipment | -513 | 803 | |
Litigation settlement | 0 | -20,875 | |
Material charges and other operating expenses | 0 | ||
Total costs and expenses | 372,497 | 301,045 | |
INCOME (LOSS) FROM OPERATIONS | 174,542 | 76,557 | |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | -32,746 | -20,960 | |
Interest income | 155 | 587 | |
Loss on extinguishment of debt | 0 | ||
Other - net | -1,041 | -351 | |
Total other income (expense) - net | -33,632 | -20,724 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 140,910 | 55,833 | |
Provision for income taxes | 17,241 | 281 | |
NET INCOME FROM CONTINUING OPERATIONS | 123,669 | 55,552 | |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 4,043 | |
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 0 | 0 | |
Net income | 123,669 | 59,595 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | 123,669 | 59,595 | |
OTHER COMPREHENSIVE INCOME: | |||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 2,404 | |
COMPREHENSIVE INCOME | 127,055 | 61,999 | |
Consolidated Statement of Cash Flows [Abstract] | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 244,766 | 80,523 | |
INVESTING ACTIVITIES: | |||
Property, plant and equipment additions | -514,265 | -532,518 | |
Proceeds from disposals of property, plant and equipment | 1,680 | 6,600 | |
Investments in consolidated subsidiaries | 0 | 0 | |
Net cash used in investing activities | -512,585 | -525,918 | |
FINANCING ACTIVITIES: | |||
Advances (to) from affiliates | 0 | 0 | |
Contributions from parent | 0 | 0 | |
Proceeds from borrowings | 0 | 793,380 | |
Debt issue costs | 0 | -687 | |
Dividends paid | -12,562 | 0 | |
Excess tax benefits (deficit) from share-based compensation | -1,981 | -563 | |
Proceeds from exercise of share options | 0 | 810 | |
Net cash provided by (used in) financing activities | -14,543 | 792,940 | |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -282,362 | 347,545 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 339,154 | 1,092,844 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 56,792 | 1,440,389 | |
Rowan Companies plc (Parent) [Member] | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 895 | 116,010 | |
Receivables - trade and other | 76 | 26 | |
Other current assets | 212 | 424 | |
Assets of discontinued operations | 0 | ||
Total current assets | 1,183 | 46,359 | |
Property, plant and equipment - gross | 0 | 0 | |
Less accumulated depreciation and amortization | 0 | 0 | |
Property, plant and equipment - net | 0 | 0 | |
Investments in subsidiaries | 4,754,045 | 4,624,874 | |
Due from affiliates | 57,359 | 36,586 | |
Other assets | 0 | 0 | |
TOTAL ASSETS | 4,812,587 | 4,707,819 | |
CURRENT LIABILITIES: | |||
Accounts payable - trade | 229 | 912 | |
Deferred revenues | 0 | 0 | |
Accrued liabilities | 321 | 400 | |
Liabilities of discontinued operations | 0 | ||
Total current liabilities | 550 | 1,312 | |
Long-term debt | 0 | 0 | |
Due to affiliates | 1,081 | 9,282 | |
Other liabilities | 4,610 | 5,826 | |
Deferred income taxes - net | 0 | 0 | |
Shareholders' equity | 4,806,346 | 4,691,399 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,812,587 | 4,707,819 | |
Consolidating Income Statements | |||
REVENUES | 0 | 0 | |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Selling, general and administrative | 4,212 | 5,820 | |
Loss (gain) on disposals of property and equipment | 0 | 0 | |
Litigation settlement | 0 | 0 | |
Material charges and other operating expenses | 0 | ||
Total costs and expenses | 4,212 | 5,820 | |
INCOME (LOSS) FROM OPERATIONS | -4,212 | -5,820 | |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | 0 | 0 | |
Interest income | 134 | 109 | |
Loss on extinguishment of debt | 0 | ||
Other - net | 5,604 | 3,500 | |
Total other income (expense) - net | 5,738 | 3,609 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,526 | -2,211 | |
Provision for income taxes | 0 | 0 | |
NET INCOME FROM CONTINUING OPERATIONS | 1,526 | -2,211 | |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 0 | |
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 122,143 | 61,806 | |
Net income | 123,669 | 59,595 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | 123,669 | 59,595 | |
OTHER COMPREHENSIVE INCOME: | |||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 2,404 | |
COMPREHENSIVE INCOME | 127,055 | 61,999 | |
Consolidated Statement of Cash Flows [Abstract] | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | -3,615 | 67,801 | |
INVESTING ACTIVITIES: | |||
Property, plant and equipment additions | 0 | 0 | |
Proceeds from disposals of property, plant and equipment | 0 | 0 | |
Investments in consolidated subsidiaries | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
FINANCING ACTIVITIES: | |||
Advances (to) from affiliates | -28,837 | -16,893 | |
Contributions from parent | 0 | 0 | |
Proceeds from borrowings | 0 | 0 | |
Debt issue costs | 0 | 0 | |
Dividends paid | -12,562 | 0 | |
Excess tax benefits (deficit) from share-based compensation | 0 | 0 | |
Proceeds from exercise of share options | 0 | 810 | |
Net cash provided by (used in) financing activities | -41,399 | -16,083 | |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -45,014 | 51,718 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,909 | 64,292 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 895 | 116,010 | |
RCI (Issuer) [Member] | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 2,946 | 668,602 | |
Receivables - trade and other | 5,617 | 4,317 | |
Other current assets | 43,565 | 47,986 | |
Assets of discontinued operations | 0 | ||
Total current assets | 52,128 | 100,883 | |
Property, plant and equipment - gross | 550,095 | 610,063 | |
Less accumulated depreciation and amortization | 228,765 | 271,293 | |
Property, plant and equipment - net | 321,330 | 338,770 | |
Investments in subsidiaries | 6,196,899 | 5,863,509 | |
Due from affiliates | 1,556,471 | 1,412,860 | |
Other assets | 17,792 | 18,103 | |
TOTAL ASSETS | 8,144,620 | 7,734,125 | |
CURRENT LIABILITIES: | |||
Accounts payable - trade | 14,576 | 8,576 | |
Deferred revenues | 0 | 0 | |
Accrued liabilities | 85,130 | 100,167 | |
Liabilities of discontinued operations | 0 | ||
Total current liabilities | 99,706 | 108,743 | |
Long-term debt | 2,807,114 | 2,807,324 | |
Due to affiliates | 245,024 | 45,457 | |
Other liabilities | 306,343 | 312,575 | |
Deferred income taxes - net | 517,836 | 507,281 | |
Shareholders' equity | 4,168,597 | 3,952,745 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,144,620 | 7,734,125 | |
Consolidating Income Statements | |||
REVENUES | 15,046 | 16,162 | |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 1,697 | 3,156 | |
Depreciation and amortization | 4,580 | 4,562 | |
Selling, general and administrative | 642 | 1,229 | |
Loss (gain) on disposals of property and equipment | -342 | 17 | |
Litigation settlement | 0 | 0 | |
Material charges and other operating expenses | 0 | ||
Total costs and expenses | 6,577 | 8,964 | |
INCOME (LOSS) FROM OPERATIONS | 8,469 | 7,198 | |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | -32,746 | -20,960 | |
Interest income | 2,467 | 447 | |
Loss on extinguishment of debt | 0 | ||
Other - net | -5,523 | -3,494 | |
Total other income (expense) - net | -35,802 | -24,007 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -27,333 | -16,809 | |
Provision for income taxes | 390 | -8,949 | |
NET INCOME FROM CONTINUING OPERATIONS | -27,723 | -7,860 | |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 4,043 | |
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 22,078 | 25,380 | |
Net income | -5,645 | 21,563 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | -5,645 | 21,563 | |
OTHER COMPREHENSIVE INCOME: | |||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 2,404 | |
COMPREHENSIVE INCOME | -2,259 | 23,967 | |
Consolidated Statement of Cash Flows [Abstract] | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | -19,741 | 287,495 | |
INVESTING ACTIVITIES: | |||
Property, plant and equipment additions | -1,758 | -4,236 | |
Proceeds from disposals of property, plant and equipment | 1,198 | 6,007 | |
Investments in consolidated subsidiaries | 0 | -74,305 | |
Net cash used in investing activities | -560 | -72,534 | |
FINANCING ACTIVITIES: | |||
Advances (to) from affiliates | -23,352 | -355,605 | |
Contributions from parent | 0 | 0 | |
Proceeds from borrowings | 0 | 793,380 | |
Debt issue costs | 0 | -687 | |
Dividends paid | 0 | -75,000 | |
Excess tax benefits (deficit) from share-based compensation | -1,981 | -563 | |
Proceeds from exercise of share options | 0 | 0 | |
Net cash provided by (used in) financing activities | -25,333 | 361,525 | |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -45,634 | 576,486 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 48,580 | 92,116 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,946 | 668,602 | |
Other non-guarantor subsidiaries [Member] | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 52,951 | 655,777 | |
Receivables - trade and other | 497,458 | 540,861 | |
Other current assets | 8,270 | 8,328 | |
Assets of discontinued operations | 0 | ||
Total current assets | 558,679 | 793,854 | |
Property, plant and equipment - gross | 8,765,844 | 8,190,119 | |
Less accumulated depreciation and amortization | 1,223,148 | 1,096,677 | |
Property, plant and equipment - net | 7,542,696 | 7,093,442 | |
Investments in subsidiaries | 0 | 0 | |
Due from affiliates | 246,421 | 71,867 | |
Other assets | 18,156 | 19,781 | |
TOTAL ASSETS | 8,365,952 | 7,978,944 | |
CURRENT LIABILITIES: | |||
Accounts payable - trade | 103,268 | 93,285 | |
Deferred revenues | 37,352 | 36,189 | |
Accrued liabilities | 77,357 | 93,692 | |
Liabilities of discontinued operations | 0 | ||
Total current liabilities | 217,977 | 223,166 | |
Long-term debt | 0 | 0 | |
Due to affiliates | 1,614,146 | 1,466,574 | |
Other liabilities | 62,420 | 49,865 | |
Deferred income taxes - net | 162,544 | 167,094 | |
Shareholders' equity | 6,308,865 | 6,072,245 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,365,952 | 7,978,944 | |
Consolidating Income Statements | |||
REVENUES | 547,351 | 376,494 | |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 268,291 | 232,267 | |
Depreciation and amortization | 84,861 | 66,311 | |
Selling, general and administrative | 24,085 | 22,826 | |
Loss (gain) on disposals of property and equipment | -171 | 786 | |
Litigation settlement | 0 | -20,875 | |
Material charges and other operating expenses | 0 | ||
Total costs and expenses | 377,066 | 301,315 | |
INCOME (LOSS) FROM OPERATIONS | 170,285 | 75,179 | |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | -2,449 | -240 | |
Interest income | 3 | 271 | |
Loss on extinguishment of debt | 0 | ||
Other - net | -1,122 | -357 | |
Total other income (expense) - net | -3,568 | -326 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 166,717 | 74,853 | |
Provision for income taxes | 28,749 | 16,406 | |
NET INCOME FROM CONTINUING OPERATIONS | 137,968 | 58,447 | |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 0 | |
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 0 | 0 | |
Net income | 137,968 | 58,447 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | 137,968 | 58,447 | |
OTHER COMPREHENSIVE INCOME: | |||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 0 | 0 | |
COMPREHENSIVE INCOME | 137,968 | 58,447 | |
Consolidated Statement of Cash Flows [Abstract] | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 266,064 | 290,409 | |
INVESTING ACTIVITIES: | |||
Property, plant and equipment additions | -512,507 | -528,282 | |
Proceeds from disposals of property, plant and equipment | 482 | 593 | |
Investments in consolidated subsidiaries | 0 | 0 | |
Net cash used in investing activities | -512,025 | -527,689 | |
FINANCING ACTIVITIES: | |||
Advances (to) from affiliates | 54,247 | -42,684 | |
Contributions from parent | 0 | 74,305 | |
Proceeds from borrowings | 0 | 0 | |
Debt issue costs | 0 | 0 | |
Dividends paid | 0 | -75,000 | |
Excess tax benefits (deficit) from share-based compensation | 0 | 0 | |
Proceeds from exercise of share options | 0 | 0 | |
Net cash provided by (used in) financing activities | 54,247 | -43,379 | |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -191,714 | -280,659 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 244,665 | 936,436 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 52,951 | 655,777 | |
Consolidating adjustments [Member] | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 0 | 0 | |
Receivables - trade and other | 0 | 0 | |
Other current assets | 0 | 0 | |
Assets of discontinued operations | 0 | ||
Total current assets | 0 | 0 | |
Property, plant and equipment - gross | 0 | 0 | |
Less accumulated depreciation and amortization | 0 | 0 | |
Property, plant and equipment - net | 0 | 0 | |
Investments in subsidiaries | -10,950,944 | -10,488,383 | |
Due from affiliates | -1,860,251 | -1,521,313 | |
Other assets | 0 | 0 | |
TOTAL ASSETS | -12,811,195 | -12,009,696 | |
CURRENT LIABILITIES: | |||
Accounts payable - trade | 0 | 0 | |
Deferred revenues | 0 | 0 | |
Accrued liabilities | 0 | 0 | |
Liabilities of discontinued operations | 0 | ||
Total current liabilities | 0 | 0 | |
Long-term debt | 0 | 0 | |
Due to affiliates | -1,860,251 | -1,521,313 | |
Other liabilities | 0 | 0 | |
Deferred income taxes - net | -473,482 | -463,393 | |
Shareholders' equity | -10,477,462 | -10,024,990 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | -12,811,195 | -12,009,696 | |
Consolidating Income Statements | |||
REVENUES | -15,358 | -15,054 | |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | -14,254 | -15,054 | |
Depreciation and amortization | 249 | 0 | |
Selling, general and administrative | -1,353 | 0 | |
Loss (gain) on disposals of property and equipment | 0 | 0 | |
Litigation settlement | 0 | 0 | |
Material charges and other operating expenses | 0 | ||
Total costs and expenses | -15,358 | -15,054 | |
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | 2,449 | 240 | |
Interest income | -2,449 | -240 | |
Loss on extinguishment of debt | 0 | ||
Other - net | 0 | 0 | |
Total other income (expense) - net | 0 | 0 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 0 | 0 | |
Provision for income taxes | -11,898 | -7,176 | |
NET INCOME FROM CONTINUING OPERATIONS | 11,898 | 7,176 | |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 0 | |
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | -144,221 | -87,186 | |
Net income | -132,323 | -80,010 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | -132,323 | -80,010 | |
OTHER COMPREHENSIVE INCOME: | |||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | -3,386 | -2,404 | |
COMPREHENSIVE INCOME | -135,709 | -82,414 | |
Consolidated Statement of Cash Flows [Abstract] | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,058 | -565,182 | |
INVESTING ACTIVITIES: | |||
Property, plant and equipment additions | 0 | 0 | |
Proceeds from disposals of property, plant and equipment | 0 | 0 | |
Investments in consolidated subsidiaries | 0 | 74,305 | |
Net cash used in investing activities | 0 | 74,305 | |
FINANCING ACTIVITIES: | |||
Advances (to) from affiliates | -2,058 | 415,182 | |
Contributions from parent | 0 | -74,305 | |
Proceeds from borrowings | 0 | 0 | |
Debt issue costs | 0 | 0 | |
Dividends paid | 0 | 150,000 | |
Excess tax benefits (deficit) from share-based compensation | 0 | 0 | |
Proceeds from exercise of share options | 0 | 0 | |
Net cash provided by (used in) financing activities | -2,058 | 490,877 | |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $0 | $0 |