Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ROWAN COMPANIES PLC | ||
Entity Central Index Key | 85,408 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 124,824,224 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 484,228 | $ 339,154 |
Receivables - trade and other | 410,519 | 545,204 |
Prepaid expenses and other current assets | 26,528 | 27,096 |
Deferred income taxes - net | 0 | 27,485 |
Total current assets | 921,275 | 938,939 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Drilling equipment | 8,930,434 | 7,639,171 |
Construction in progress | 0 | 1,023,646 |
Other property and equipment | 137,659 | 137,365 |
Property, plant and equipment - gross | 9,068,093 | 8,800,182 |
Less accumulated depreciation and amortization | 1,662,261 | 1,367,970 |
Property, plant and equipment - net | 7,405,832 | 7,432,212 |
Other assets | 20,160 | 21,199 |
TOTAL ASSETS | 8,347,267 | 8,392,350 |
CURRENT LIABILITIES: | ||
Accounts payable - trade | 109,574 | 102,773 |
Deferred revenues | 33,062 | 36,189 |
Accrued liabilities | 186,035 | 194,259 |
Total current liabilities | 328,671 | 333,221 |
Long-term debt | 2,692,419 | 2,788,482 |
Other liabilities | 357,923 | 368,266 |
Deferred income taxes - net | 195,795 | 210,982 |
Commitments and contingent liabilities | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Class A Ordinary Shares, $0.125 par value, 125,947,424 and 124,828,807 shares issued at December 31, 2015 and 2014, respectively | 15,743 | 15,604 |
Additional paid-in capital | 1,458,532 | 1,436,910 |
Retained earnings | 3,509,792 | 3,466,993 |
Cost of 1,129,440 and 264,903 treasury shares at December 31, 2015 and 2014, respectively | (12,223) | (7,990) |
Accumulated other comprehensive loss | (199,385) | (220,118) |
Total shareholders' equity | 4,772,459 | 4,691,399 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,347,267 | $ 8,392,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
SHAREHOLDERS' EQUITY: | ||
Treasury shares (in shares) | 1,129,440 | 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) | 125,947,424 | 124,828,807 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
REVENUES | $ 2,137,018 | $ 1,824,383 | $ 1,579,284 |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 993,087 | 991,340 | 860,893 |
Depreciation and amortization | 391,418 | 322,641 | 271,008 |
Selling, general and administrative | 115,779 | 125,834 | 131,373 |
Gain on disposals of property and equipment | (7,703) | (1,778) | (20,119) |
Gain on litigation settlement | 0 | (20,875) | 0 |
Material charges and other operating expenses | 337,347 | 573,950 | 4,453 |
Total costs and expenses | 1,829,928 | 1,991,112 | 1,247,608 |
INCOME (LOSS) FROM OPERATIONS | 307,090 | (166,729) | 331,676 |
OTHER INCOME (EXPENSE): | |||
Interest expense, net of interest capitalized | (145,317) | (103,934) | (69,794) |
Interest income | 1,129 | 1,861 | 1,578 |
Loss on debt extinguishment | (1,482) | 0 | 0 |
Other - net | (3,710) | (805) | (2,221) |
Total other income (expense) - net | (149,380) | (102,878) | (70,437) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | |||
BEFORE INCOME TAXES | 157,710 | (269,607) | 261,239 |
Provision (benefit) for income taxes | 64,399 | (150,732) | 8,663 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 93,311 | (118,875) | 252,576 |
DISCONTINUED OPERATIONS, NET OF TAX | 0 | (4,023) | 0 |
NET INCOME (LOSS) | $ 93,311 | $ (114,852) | $ 252,576 |
INCOME (LOSS) PER SHARE - BASIC: | |||
Income (loss) from continuing operations (in dollars per share) | $ 0.75 | $ (0.96) | $ 2.04 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 |
Net income (loss) (in dollars per share) | 0.75 | (0.93) | 2.04 |
INCOME (LOSS) PER SHARE - DILUTED: | |||
Income (loss) from continuing operations (in dollars per share) | 0.75 | (0.96) | 2.03 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 |
Net income (loss) (in dollars per share) | $ 0.75 | $ (0.93) | $ 2.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 93,311 | $ (114,852) | $ 252,576 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income tax expense (benefit) of $3,446, ($46,944), and $34,092, respectively | 6,964 | (87,293) | 63,315 |
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense of $7,386, $5,261, and $8,250, respectively | 13,769 | 9,824 | 15,322 |
OTHER COMPREHENSIVE INCOME | 20,733 | (77,469) | 78,637 |
COMPREHENSIVE INCOME (LOSS) | $ 114,044 | $ (192,321) | $ 331,213 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income tax effect | $ 3,446 | $ (46,944) | $ 34,092 |
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost tax effect | $ 7,386 | $ 5,261 | $ 8,250 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | 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] |
Balance at Dec. 31, 2012 | $ 4,531,724 | $ 15,593 | $ 1,372,135 | $ 3,366,964 | $ (1,886) | $ (221,082) |
Balance (in shares) at Dec. 31, 2012 | 124,211 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | (1,742) | $ 4 | 2,330 | (4,076) | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 26 | |||||
Share-based compensation | 27,056 | 27,056 | ||||
Excess tax benefit from share-based awards | 3,690 | 3,690 | ||||
Retirement benefit adjustments, net of taxes | 78,637 | 78,637 | ||||
Other | 1,820 | 1,820 | ||||
Net income (loss) | 252,576 | 252,576 | ||||
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 | (455) | $ 7 | 1,566 | (2,028) | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 327 | |||||
Share-based compensation | 28,445 | 28,445 | ||||
Excess tax benefit from share-based awards | (132) | (132) | ||||
Retirement benefit adjustments, net of taxes | (77,469) | (77,469) | ||||
Dividends | (37,695) | (37,695) | ||||
Other | (204) | (204) | ||||
Net income (loss) | (114,852) | (114,852) | ||||
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 | (3,699) | $ 139 | 395 | (4,233) | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 254 | |||||
Share-based compensation | 23,830 | 23,830 | ||||
Excess tax benefit from share-based awards | (2,603) | (2,603) | ||||
Retirement benefit adjustments, net of taxes | 20,733 | 20,733 | ||||
Dividends | (50,512) | (50,512) | ||||
Net income (loss) | 93,311 | 93,311 | ||||
Balance at Dec. 31, 2015 | $ 4,772,459 | $ 15,743 | $ 1,458,532 | $ 3,509,792 | $ (12,223) | $ (199,385) |
Balance (in shares) at Dec. 31, 2015 | 124,818 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Retirement benefit adjustments, taxes | $ (10,832) | $ 41,683 | $ (42,342) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH PROVIDED BY OPERATIONS: | |||
Net income (loss) | $ 93,311 | $ (114,852) | $ 252,576 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | |||
Depreciation and amortization | 392,735 | 322,641 | 271,008 |
Provision for pension and postretirement benefits | 33,978 | 25,117 | 32,010 |
Share-based compensation expense | 33,627 | 34,547 | 33,931 |
Other postretirement benefit claims paid | (4,408) | (4,125) | (3,470) |
Gain on disposals of property, plant and equipment | (7,703) | (3,691) | (20,119) |
Deferred income taxes | (1,137) | (182,544) | (33,559) |
Contributions to pension plans | (11,339) | (54,834) | (18,860) |
Asset impairment charges | 329,781 | 573,950 | 4,453 |
Non-cash loss on debt extinguishment | 510 | 0 | 0 |
Changes in current assets and liabilities: | |||
Receivables - trade and other | 134,685 | (200,658) | 30,784 |
Prepaid expenses and other current assets | 568 | 16,328 | 9,583 |
Accounts payable | 23,201 | (20,629) | 32,373 |
Accrued income taxes | 10,662 | 4,891 | (17,714) |
Deferred revenues | (3,127) | (18,326) | 2,175 |
Other current liabilities | (13,094) | 72,897 | (12,441) |
Net changes in other noncurrent assets and liabilities | (15,258) | (27,753) | 60,446 |
Net cash provided by operations | 996,992 | 422,959 | 623,176 |
CASH USED IN INVESTING ACTIVITIES: | |||
Capital expenditures | (722,889) | (1,958,227) | (607,311) |
Proceeds from disposals of property, plant and equipment | 19,373 | 21,987 | 44,550 |
Net cash used in investing activities | (703,516) | (1,936,240) | (562,761) |
CASH PROVIDED BY FINANCING ACTIVITIES: | |||
Proceeds from borrowings | 220,000 | 793,380 | 0 |
Dividends paid | (50,512) | (37,695) | 0 |
Debt issue costs | 0 | (687) | 0 |
Repayments of borrowings | (317,890) | 0 | 0 |
Proceeds from exercise of share options | 0 | 4,725 | 2,911 |
Excess tax benefits from share-based compensation | 0 | (132) | 3,690 |
Other | 0 | 0 | 1,820 |
Net cash provided by (used in) financing activities | (148,402) | 759,591 | 8,421 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 145,074 | (753,690) | 68,836 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 339,154 | 1,092,844 | 1,024,008 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 484,228 | $ 339,154 | $ 1,092,844 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Rowan Companies plc, a public limited company incorporated under the laws of England and Wales, is a global provider of offshore contract drilling services to the international oil and gas industry. Our fleet currently consists of 31 mobile offshore drilling units, including 27 self-elevating jack-up drilling units and four ultra-deepwater drillships. We contract our drilling rigs, related equipment and work crews primarily on a day-rate basis in markets throughout the world, currently including the United States Gulf of Mexico (US GOM), United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East and Trinidad. The consolidated financial statements included herein are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc ("Rowan plc") and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” “Company,” “we,” “us” and “our” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The financial information presented in this report does not constitute the Company's statutory accounts within the meaning of the U.K. Companies Act 2006 for the years ended December 31, 2015 or 2014 . The audit of the statutory accounts for the year ended December 31, 2015 , was not complete as of February 26, 2016 . These accounts will be finalized by the directors on the basis of the financial information presented herein and will be delivered to the Registrar of Companies in the U.K. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue and Expense Recognition Our drilling contracts generally provide for payment on a daily rate basis, and revenues are recognized as the work progresses with the passage of time. We occasionally receive lump-sum payments at the outset of a drilling assignment for equipment moves or modifications. Lump-sum fees received for equipment moves (and related costs) and fees received for equipment modifications or upgrades are initially deferred and amortized on a straight-line basis over the primary term of the drilling contract. The costs of contractual equipment modifications or upgrades and the costs of the initial move of newly acquired rigs are capitalized and depreciated in accordance with the Company’s fixed asset capitalization policy. The costs of moving equipment while not under contract are expensed as incurred. Revenues received but unearned are included in current and long-term liabilities and totaled $50.8 million and $60.2 million at December 31, 2015 and 2014 , respectively. Deferred contract costs are included in prepaid expenses and other assets and totaled $4.4 million and $5.4 million at December 31, 2015 and 2014 , respectively. We recognize revenue for certain reimbursable costs. Each reimbursable item and amount is stipulated in the Company’s contract with the customer, and such items and amounts frequently vary between contracts. We recognize reimbursable costs on the gross basis, as both revenues and expenses, because we are the primary obligor in the arrangement, have discretion in supplier selection, are involved in determining product or service specifications and assume full credit risk related to the reimbursable costs. Cash Equivalents Cash equivalents consist of highly liquid temporary cash investments with maturities no greater than three months at the time of purchase. Accounts Receivable and Allowance for Doubtful Accounts The Company assesses the collectability of receivables and records adjustments to an allowance for doubtful accounts, which is recorded as an offset to accounts receivable, to cover the risk of credit losses. The allowance is based on historical and other factors that predict collectability, including write-offs, recoveries and the monitoring of credit quality. No allowance for doubtful accounts was required at December 31, 2015 or 2014. The following table sets forth the components of Receivables - trade and other at December 31 (in thousands): 2015 2014 Trade $ 395,694 $ 524,712 Income tax 4,463 6,315 Other 10,362 14,177 Total receivables - trade and other $ 410,519 $ 545,204 Property and Depreciation We provide depreciation for financial reporting purposes under the straight-line method over the asset’s estimated useful life from the date the asset is placed into service until it is sold or becomes fully depreciated. In 2014, we reduced salvage values for our jack-up rigs from 20 percent to 10 percent of historical cost effective December 31, 2014, in connection with the completion of our asset impairment test. Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 5 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 5 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various Expenditures for new property or enhancements to existing property are capitalized and depreciated over the asset’s estimated useful life. As assets are sold or retired, property cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in results of operations. The Company capitalizes a portion of interest cost incurred during the construction period. We capitalized interest in the amount of $16.2 million in 2015 , $57.6 million in 2014 and $48.7 million in 2013 . Expenditures for maintenance and repairs are charged to operations as incurred and totaled $129 million in 2015 , $161 million in 2014 and $152 million in 2013 . Impairment of Long-lived Assets We review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. For assets held and used, we determine recoverability by evaluating the undiscounted estimated future net cash flows based on projected day rates, operating costs and utilization of the asset under review. When the impairment of an asset is indicated, we measure the amount of impairment as the amount by which the asset’s carrying amount exceeds its estimated fair value. We measure fair value by estimating discounted future net cash flows under various operating scenarios (an income approach) and by assigning probabilities to each scenario in order to determine an expected value. The lowest level of inputs we use to value assets held and used in the business are categorized as “significant unobservable inputs,” which are Level 3 inputs in the fair value hierarchy. For assets held for sale, we measure fair value based on equipment broker quotes, less anticipated selling costs, which are considered Level 3 inputs in the fair value hierarchy. In 2015, we conducted an impairment test of our assets and determined that the carrying values for ten of our jack-up drilling units aggregating $ 457.8 million were not recoverable from their undiscounted estimated future cash flows and exceeded the rigs' estimated fair values. As a result, we recognized a non-cash impairment charge of $ 329.8 million in 2015. In 2014, we conducted an impairment test and determined that the carrying values for twelve of our jack-ups aggregating $840.8 million were not recoverable, and as a result, we recognized a non-cash impairment charge of $565.7 million in 2014. We measured fair values using the income approach described above. Our fair value estimates required us to use significant unobservable inputs including assumptions related to future demand for drilling services, estimated availability of rigs and future day rates, among others. The impairments recognized in 2015 and 2014 on our jack-up rigs are included in jack-up operations in the segment information in Note 12. Additionally, in 2014, we recognized an $8.3 million non-cash impairment charge for the carrying value of a Company aircraft, which was used to support operations. We sold the aircraft later in 2014 and recognized an immaterial loss on sale. The asset had a carrying value of $12.7 million prior to the write-down. The amount of the impairment was based on actual sales prices for similar equipment obtained from a third-party dealer of such equipment. Quoted prices in active markets for similar equipment are considered a Level 2 input in the fair value hierarchy. The impairment recognized on the Company aircraft in 2014 is included in the "unallocated costs and other" column of the segment information in Note 12. In 2013, we recognized a $4.5 million non-cash impairment charge for a dock and storage facility, which had a carrying value of $23.5 million prior to the write-down. The impairment charge in 2013 is included in jack-up operations in the segment information in Note 12. Impairment charges are included in material charges and other operating expenses on the Consolidated Statements of Income. Share-based Compensation We recognize compensation cost for employee share-based awards on a straight-line basis over the requisite 36 -month service period. For employees who are retirement-eligible at the grant date or who will become retirement-eligible within six months of the grant date, compensation cost is recognized over a minimum period of six months. Compensation cost for employees who become retirement eligible after six months following the grant date but before the 36 -month maximum service period is amortized over the period from the grant date to the date the employee meets the retirement eligibility requirements. Fair value of restricted shares and restricted share units awarded to employees is based on the market price of the stock on the date of grant. Compensation cost is recognized for awards that are expected to vest and is adjusted in subsequent periods if actual forfeitures differ from estimates. Restricted share units granted to non-employee directors ("Director RSUs") vest one year following the grant date but may not be settled until the director terminates service from the board. Compensation cost is recognized over the one -year service period. Director RSUs may be settled in cash and/or shares of stock and are accounted for under the liability method of accounting. Fair value is based on the market price of the underlying stock on the grant date, and compensation expense is adjusted for changes in fair value at each report date through the settlement date. Performance-based awards consist of Performance Units, in which the payment is contingent on the Company's total shareholder return relative to an industry peer group. Fair value of Performance Units is determined using a Monte-Carlo simulation model. Performance Units are settled in cash and accounted for under the liability method of accounting. Compensation cost is recognized on a straight-line basis over the service period and is adjusted for changes in fair value at each report date through the vest date. Fair value of share appreciation rights ("SARs") is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of SARs, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company has not granted any SARs since 2013. The Company intends to share-settle SARs that are exercised and has therefore accounted for them as equity awards. Foreign Currency Transactions A substantial majority of our revenues are received in U.S. dollars, which is our functional currency. However, in certain countries in which we operate, local laws or contracts may require us to receive payment in the local currency. We are exposed to foreign currency exchange risk to the extent the amount of our monetary assets denominated in the foreign currency differs from our obligations in that foreign currency. In order to mitigate the effect of exchange rate risk, we attempt to limit foreign currency holdings to the extent they are needed to pay liabilities in the local currency. In the past, we have entered into spot purchases or short-term derivative transactions, such as forward exchange contracts, with one-month durations. We did not enter into such transactions for the purpose of speculation, trading or investing in the market and we believe that our use of forward exchange contracts has not exposed us to material credit risk or other material market risk. Although our risk policy allows us to enter into such forward exchange contracts, we do not currently anticipate entering into such transactions in the future and had no such contracts outstanding as of December 31, 2015 . At December 31, 2015 and December 31, 2014, we held Egyptian pounds in the amount of $13.5 million and $16.3 million , respectively, which are classified as other noncurrent assets. We ceased drilling operations in Egypt in 2014, and are currently working to obtain access to the funds for use outside Egypt to the extent they are not utilized. We can provide no assurance we will be able to convert or utilize such funds in the future. Non-U.S. dollar transaction gains and losses are recognized in “other income” on the Consolidated Statements of Income. The Company recognized net currency exchange gains of $3.9 million and $0.05 million in 2015 and 2014 , respectively, and a net exchange loss of $2.3 million in 2013 . Income Taxes Rowan recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. Interest and penalties related to income taxes are included in income tax expense. The Company does not provide deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. subsidiaries of the Company's wholly owned subsidiary, Rowan Companies Inc. (RCI). It is the Company’s policy and intention to permanently reinvest earnings of non-U.S. subsidiaries of RCI outside the U.S. Should the non-U.S. subsidiaries of RCI make a distribution from these earnings, we may be subject to additional U.S. income taxes. Generally, earnings of non-U.K. subsidiaries in which RCI does not have a direct or indirect ownership interest can be distributed to the Company without the imposition of either U.K. or local country tax. See Note 11 for further information regarding the Company’s income taxes. Income Per Common Share Basic income per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional effect of all potentially dilutive securities outstanding during the period, which includes nonvested restricted stock, restricted stock units, share options and appreciation rights granted under share-based compensation plans. A reconciliation of shares for basic and diluted income per share is set forth below. There were no income adjustments to the numerators of the basic or diluted computations for the periods presented (in thousands): 2015 2014 2013 Average common shares outstanding 124,508 124,067 123,517 Add dilutive securities: Nonvested restricted shares and restricted share units 585 — 542 Share options and appreciation rights 110 — 409 Average shares for diluted computations 125,203 124,067 124,468 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 that can be exercised, or when the Company reports a net loss from continuing operations. Antidilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in thousands): 2015 2014 2013 Share options and appreciation rights 1,249 2,234 1,065 Nonvested restricted shares and restricted share units 1,092 619 — Total potentially dilutive shares 2,341 2,853 1,065 Recent Accounting Pronouncements 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. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are evaluating the standard and have not yet determined our implementation method upon adoption or what impact adoption will have on our financial statements. 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 periods 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. We adopted the new standard effective December 31, 2015. As a result of adoption, we reclassified unamortized debt issue costs in the amount of $16.4 million and $18.8 million as of December 31, 2015 and 2014, respectively, and reduced the carrying value of long-term debt by the same amounts. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities in balance sheets as noncurrent. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2017, with early adoption permitted. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We are evaluating the standard and have not yet determined our implementation method. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for leases previously classified as operating leases under prior GAAP. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2019. Lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. We have not yet evaluated the standard nor determined our implementation method upon adoption or what impact adoption will have on our financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In 2014 we sold a land rig that was retained in connection with the 2011 sale of the Company's manufacturing business. The Company received $6.0 million in cash resulting in a $4.0 million gain, net of a $2.1 million income tax benefit. The net gain on sale is classified as discontinued operations. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities at December 31 consisted of the following (in thousands): 2015 2014 Pension and other postretirement benefits $ 31,389 $ 26,219 Compensation and related employee costs 73,628 88,186 Interest 44,338 47,414 Income taxes 23,927 13,265 Other 12,753 19,175 Total accrued liabilities $ 186,035 $ 194,259 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt at December 31 consisted of the following (in thousands): 2015 2014 5% Senior Notes, due September 2017 ($366.6 million principal amount; 5.1% effective rate) $ 365,494 $ 398,009 7.875% Senior Notes, due August 2019 ($435.5 million principal amount; 8.0% effective rate) 432,870 496,150 4.875% Senior Notes, due June 2022 ($700 million principal amount; 4.6% effective rate) 706,236 707,206 4.75% Senior Notes, due January 2024 ($400 million principal amount; 4.8% effective rate) 397,069 396,704 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.5% effective rate) 394,720 394,524 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396,030 395,889 Total long-term debt $ 2,692,419 $ 2,788,482 As of December 31, 2015 , no principal payments are required with respect to our outstanding debt through 2016; $366.6 million becomes due in September 2017 , and $435.5 million becomes due in August 2019 . In January 2014, Rowan plc, as guarantor, and its 100% owned subsidiary, RCI, as issuer, completed the issuance and sale in a public offering of $400 million aggregate principal amount of its 4.75% Senior Notes due 2024 at a price to the public of 99.898% of the principal amount and $400 million aggregate principal amount of its 5.85% Senior Notes due 2044 at a price to the public of 99.972% of the principal amount. Net proceeds of the offering were approximately $792 million , which the Company used in its rig construction program and for general corporate purposes. In May 2015, the Company amended and restated its revolving credit agreement to increase the borrowing capacity under the facility from $1 billion to $1.5 billion and to extend the maturity date by one year to January 2020. There were no amounts drawn under the revolving credit facility at December 31, 2015 . In January 2016, the Company further amended the revolving credit agreement to extend the maturity date by one year to January 2021. Availability under the facility is $1.5 billion through January 23, 2019, declining to $1.44 billion through January 23, 2020, and to approximately $1.29 billion through the maturity in 2021. During 2015, we paid $101.1 million in cash to retire $97.9 million aggregate principal amount 5% Notes due 2017 and 7.875% Notes due 2019, plus accrued interest, and recognized a $1.5 million loss on early extinguishment of debt. The 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 (together, the "Senior Notes") are RCI’s senior unsecured obligations and rank senior in right of payment to all of its subordinated indebtedness and pari passu in right of payment with any of RCI’s future senior indebtedness, including any indebtedness under RCI’s senior revolving credit facility. The Senior Notes rank effectively junior to RCI’s future secured indebtedness, if any, to the extent of the value of its assets constituting collateral securing that indebtedness and to all existing and future indebtedness of its subsidiaries (other than indebtedness and liabilities owed to RCI). All or part of the Senior Notes may be redeemed at any time for an amount equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date plus the applicable make-whole premium, if any. The Senior Notes are fully and unconditionally guaranteed on a senior and unsecured basis by Rowan plc (see Note 15). Restrictive provisions in the Company’s bank credit facility agreement limit consolidated debt to 60% of book capitalization. Our consolidated debt to total capitalization ratio at December 31, 2015 , was 36% . Other provisions of our debt agreements limit the ability of the Company to create liens that secure debt, engage in sale and leaseback transactions, merge or consolidate with another company and, in the event of noncompliance, restrict investment activities and asset purchases and sales, among other things. The Company was in compliance with its debt covenants at December 31, 2015 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 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 at December 31 are presented below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2015: Assets - cash equivalents $ 465,388 $ 465,388 $ — $ — Other assets 13,508 13,508 — — December 31, 2014: Assets - cash equivalents $ 314,570 $ 314,570 $ — $ — Other assets 16,304 16,304 — — At December 31, 2015 and 2014, we held Egyptian pounds in the amount of approximately $13.5 million and $16.3 million , respectively, which are classified as other noncurrent assets. We ceased drilling operations in Egypt in 2014, and are currently working to obtain access to the funds for use outside Egypt to the extent they are not utilized. We can provide no assurance we will be able to convert or utilize such funds in the future. 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. Assets Measured at Fair Value on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis and whose carrying values were remeasured during the year ended December 31 are set forth below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total gains (losses) 2015: Property and equipment, net $ 128,018 $ — $ — $ 128,018 $ (329,781 ) 2014: Property and equipment, net $ 275,148 $ — $ — $ 275,148 $ (565,650 ) In 2015, we recognized non-cash asset impairment charges aggregating $329.8 million on ten of the Company's jack-up drilling units having an aggregate net carrying value of $457.8 million prior to the write-down. In 2014, we recognized asset impairment charges totaling $565.7 million on twelve jack-up drilling units having an aggregate net carrying value of $840.8 million prior to the write-down. See Note 2, "Impairment of Long-lived Assets." Other Fair Value Measurements Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. Our publicly traded debt securities are classified as long-term debt and had a carrying value of $2.692 billion at December 31, 2015 , and an estimated fair value at that date aggregating $2.072 billion , compared to a carrying and fair value of $2.788 billion and $2.755 billion , respectively, at December 31, 2014 . Fair values of our publicly traded debt securities were provided by a broker who makes a market in such 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. Concentrations of Credit Risk We invest our excess cash primarily in time deposits and high-quality money market accounts at several large commercial banks with strong credit ratings, and therefore believe that our risk of loss is minimal. The Company’s customers largely consist of major international oil companies, national oil companies and large investment-grade exploration and production companies. We routinely evaluate the credit quality of potential customers. Three customers, Saudi Aramco, ConocoPhillips, and Anadarko accounted for 19% , 13% and 10% , respectively, of consolidated revenues in 2015 and 34% , 12% , and 9% respectively, of the consolidated trade receivable balance at December 31, 2015. In 2014 , one customer accounted for 24% of consolidated revenues and 29% of the consolidated trade receivable balance at December 31, 2014. In 2013 , one customer accounted for 26% and another accounted for 11% of consolidated revenues. The Company maintains reserves for credit losses when necessary and actual losses have been within management’s expectations. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES The Company has operating leases covering office space and equipment. Certain of the leases are subject to escalations based on increases in building operating costs. Rental expense attributable to continuing operations was $13.2 million in 2015 , $13.8 million in 2014 and $9.3 million in 2013 . At December 31, 2015 , future minimum payments to be made under noncancelable operating leases were as follows (in thousands): 2016 $ 7,125 2017 5,770 2018 5,669 2019 5,673 2020 3,997 Later years 12,040 $ 40,274 We had commitments for purchase obligations totaling $106 million at December 31, 2015 . We periodically employ letters of credit in the normal course of our business, and had outstanding letters of credit of approximately $4.2 million at December 31, 2015 . 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 ("IRS"). We appealed their findings and reached a settlement agreement in 2014 with respect to three of the four years under review in the amount of approximately $36 million , including interest, which we collected in 2014. A remaining year continues to be under examination. We plan to vigorously defend our position. We are involved in various legal proceedings incidental to our businesses and are vigorously defending our position in all such matters. The Company believes that there are no known contingencies, claims or lawsuits that could have a material effect on its financial position, results of operations or cash flows. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS Under the 2013 Rowan Companies plc Incentive Plan (the Plan), the Compensation Committee of the Company’s Board of Directors is authorized to grant employees and nonemployee directors incentive awards covering up to 7,500,000 of our ordinary shares. The awards may be in the form of restricted share awards, restricted share units, options and share appreciation rights. In addition, the Compensation Committee may grant performance-based awards under the Plan, in which the amount earned is dependent on the achievement of certain long-term market or performance conditions over a specified period. As of December 31, 2015 , there were 3,593,768 shares available for future grant under the Plan. Compensation cost charged to expense under all share-based incentive awards is presented below (in thousands): 2015 2014 2013 Restricted shares and restricted share units $ 22,462 $ 23,577 $ 23,786 Share appreciation rights 1,147 3,724 6,412 Share options — — 23 Performance-based awards 10,018 7,246 3,710 Total compensation cost $ 33,627 $ 34,547 $ 33,931 As of December 31, 2015 , unrecognized compensation cost related to nonvested share-based compensation arrangements totaled $34.5 million , which is expected to be recognized over a weighted-average period of 1.5 years. Restricted Shares – A restricted share represents an ordinary share subject to a vesting period that restricts its sale or transfer until the vesting period ends. In general, the restricted shares vest and the restrictions lapse in one-third increments each year over a three -year service period, or in some cases, cliff vest at the end of a three -year service period. Restricted share activity for the year ended December 31, 2015 , is summarized below: Number of Shares Weighted-average grant-date fair value per share Nonvested at January 1, 2015 210,554 $ 35.13 Vested (206,180 ) 35.14 Forfeited (1,874 ) 35.47 Nonvested at December 31, 2015 2,500 $ 33.88 The aggregate fair value of restricted shares that vested in 2015 , 2014 and 2013 was $4.1 million , $10.9 million and $16.2 million , respectively, based on share prices on the vesting dates. Employee Restricted Share Units – Restricted share units (RSUs) are rights to receive a specified number of ordinary shares upon vesting. RSUs granted to employees typically vest in one-third increments over a three -year service period or in some cases cliff vest at the end of three years. Employee RSU activity for the year ended December 31, 2015 , follows: Number of Shares Weighted-average grant-date fair value per share Nonvested at January 1, 2015 1,132,153 $ 33.05 Granted 1,222,777 21.11 Vested (440,083 ) 33.06 Forfeited (171,121 ) 25.42 Nonvested at December 31, 2015 1,743,726 $ 25.42 The aggregate fair value of employee RSUs that vested in 2015 , 2014 and 2013 was $8.9 million , $8.5 million and $0.5 million respectively. Non-employee Director Restricted Share Units – RSUs granted to nonemployee directors generally cliff vest at the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant date and are settled in either cash, shares, or a combination thereof at the discretion of the Compensation Committee determined at the time the director terminates service to the Board. Non-employee director RSU activity for the year ended December 31, 2015 , follows: Number of shares Weighted-average grant-date fair value per share Outstanding at January 1, 2015 267,438 $ 32.04 Granted 77,040 20.96 Settled (44,336 ) 32.85 Outstanding at December 31, 2015 300,142 $ 29.51 Vested at December 31, 2015 229,101 $ 32.11 The number and aggregate settlement-date fair value of non-employee director RSUs settled during the year were as follows: 2015 – 44,336 RSUs at $0.9 million ; 2014 – 37,251 RSUs at $1.2 million ; 2013 – 23,928 RSUs at $0.8 million . Non-employee director RSUs are accounted for under the liability method. Accordingly, other long-term liabilities at December 31, 2015 and 2014, included $4.7 million and $5.8 million , respectively, related to such awards. Performance-based Awards – The Committee may grant awards in which payment is contingent upon the achievement of certain market or performance-based conditions over a period of time specified by the Committee. Payment of such awards may be in ordinary shares or in cash as determined by the Committee. In February 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 ended 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. Any employee who terminates employment with the Company prior to the third anniversary for any reason other than retirement will not receive any payment with respect to P-Units unless approved by the Compensation Committee. The Compensation Committee has determined that any amount earned with respect to P-Units granted in 2015 would be settled in cash. The grant-date fair value of P-Units granted in 2015 was estimated to be $9.0 million . Fair value was estimated using the 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. Liabilities for estimated P-Unit obligations at December 31, 2015 , included $7.6 million and $11.4 million classified as short- and long-term, respectively. Liabilities for estimated P-Unit obligations at December 31, 2014, totaled $11.6 million , which was classified as long-term. In 2015 , we paid $2.7 million in cash to settle P-Units that vested during the year. No performance-based awards vested or settled in 2014 or 2013. Share Appreciation Rights – Share appreciation rights (SARs) give the holder the right to receive ordinary shares at no cost to the employee, or cash at the discretion of the Committee, equal in value to the excess of the market price of a share on the date of exercise over the exercise price. All SARs granted have exercise prices equal to the market price of the underlying shares on the date of grant. SARs become exercisable in one-third annual increments over a three -year service period and expire ten years following the grant date. The Company intends to share-settle any exercises of SARs and has therefore accounted for SARs as equity awards. Fair values of SARs granted were determined using the Black-Scholes option pricing model with the following weighted-average assumptions: 2013 Expected life in years 6.0 Risk-free interest rate 1.058% Expected volatility 41.11% Weighted-average grant-date per-share fair value $13.91 No SARs were granted in 2015 or 2014. The Company uses the simplified method for determining the expected life of SARs because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term, as permitted under US GAAP. SARs activity for the year ended December 31, 2015 , is summarized below: Number of shares under SARs Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 1,761,270 $ 30.94 Forfeited or expired (145,968 ) 34.10 Outstanding at December 31, 2015 1,615,302 $ 30.66 4.3 $ — Exercisable at December 31, 2015 1,497,425 $ 30.37 4.1 $ — No SARs were exercised in 2015. The aggregate intrinsic value of SARs exercised in 2014 and 2013 was $0.9 million , and $0.5 million , respectively. Share Options – Share options granted to employees generally became exercisable in one-third or one-quarter annual increments over a three - or four -year service period at a price generally equal to the market price of the Company’s common shares on the date of grant. The Company has not granted share options since 2008. Unexercised options expire ten years after the grant date. Share option activity for the year ended December 31, 2015 , is summarized below: Number of shares under option Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 185,404 $ 22.96 Forfeited or expired (60,372 ) 26.97 Outstanding at December 31, 2015 125,032 $ 21.02 2.4 $ 164 Exercisable at December 31, 2015 125,032 $ 21.02 2.4 $ 164 No options were exercised in 2015 . The aggregate intrinsic value of options exercised in 2014 and 2013 was $1.4 million and $2.0 million , respectively. Award modifications – In 2014, the Company accelerated the vesting of share-based awards and extended the exercise period for vested SARs held by two retiring employees whose awards would otherwise have been forfeited upon retirement. As a result of the modifications, the Company recognized additional compensation expense in 2014 in the amount of $1.7 million , net of forfeitures, which is included in selling, general and administrative expense. The Company valued the modified SARs assuming they are to be outstanding near or until such time as they expire. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees. Pension benefits are provided under the Rowan Pension Plan and the Restoration Plan of Rowan Companies, Inc. (the “Rowan SERP”), and health care and life insurance benefits are provided under the Retiree Life & Medical Supplemental Plan of Rowan Companies, Inc. (the “Retiree Medical Plan”). The following table presents the changes in benefit obligations and plan assets for the years ended December 31 and the funded status and weighted-average assumptions used to determine the benefit obligation at each year end (dollars in thousands): 2015 2014 Pension benefits Other benefits Total Pension benefits Other benefits Total Projected benefit obligations: Balance, January 1 $ 807,953 $ 73,578 $ 881,531 $ 679,880 $ 66,832 $ 746,712 Interest cost 31,911 2,870 34,781 32,680 3,025 35,705 Service cost 18,304 1,334 19,638 14,573 1,067 15,640 Actuarial (gain) loss (40,265 ) 480 (39,785 ) 114,030 6,779 120,809 Plan amendments (4,900 ) (7,188 ) (12,088 ) 259 — 259 Exchange rate changes (1,027 ) — (1,027 ) (1,215 ) — (1,215 ) Benefits paid (51,923 ) (4,408 ) (56,331 ) (32,254 ) (4,125 ) (36,379 ) Balance, December 31 760,053 66,666 826,719 807,953 73,578 881,531 Plan assets: Fair value, January 1 591,960 — 591,960 542,449 — 542,449 Actual return (74 ) — (74 ) 27,596 — 27,596 Employer contributions 11,339 — 11,339 54,834 — 54,834 Exchange rate changes (558 ) — (558 ) (665 ) — (665 ) Benefits paid (51,923 ) — (51,923 ) (32,254 ) — (32,254 ) Fair value, December 31 550,744 — 550,744 591,960 — 591,960 Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (22,249 ) $ (9,140 ) $ (31,389 ) $ (21,839 ) $ (4,380 ) $ (26,219 ) Other liabilities (long-term) (187,060 ) (57,526 ) (244,586 ) (194,154 ) (69,198 ) (263,352 ) Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Accumulated contributions in excess of (less than) net periodic benefit cost $ 106,074 $ (75,318 ) $ 30,756 $ 124,248 $ (75,522 ) $ 48,726 Amounts not yet reflected in net periodic benefit cost: Actuarial (loss) gain (336,670 ) 1,464 (335,206 ) (360,753 ) 1,944 (358,809 ) Prior service credit 21,287 7,188 28,475 20,512 — 20,512 Total accumulated other comprehensive loss (315,383 ) 8,652 (306,731 ) (340,241 ) 1,944 (338,297 ) Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Weighted-average assumptions: Discount rate 4.54 % 4.18 % 4.12 % 3.95 % Rate of compensation increase 4.15 % 4.15 % During 2015, we amended the eligibility requirement with respect to the Retiree Medical Plan to exclude any participant that was previously eligible and was under the age of 50 as of January 1, 2016. The effect of the change was to reduce the projected benefit obligation by $7.2 million , which is net of an estimated $4.4 million payment that is expected to be made in early 2016 to the affected participants. The projected benefit obligations for pension benefits in the preceding table reflect the actuarial present value of benefits accrued based on services rendered to date and include the estimated effect of future salary increases. The accumulated benefit obligations, which are presented below for all plans in the aggregate at December 31, are based on services rendered to date, but exclude the effect of future salary increases (in thousands): 2015 2014 Accumulated benefit obligation $ 755,050 $ 801,749 Each of the Company’s pension plans has a benefit obligation that exceeds the fair value of plan assets. The Company estimates the following amounts, which are classified in accumulated other comprehensive loss, a component of shareholders’ equity, will be recognized as net periodic benefit cost in 2016 (in thousands): Pension benefits Other retirement benefits Total Actuarial (loss) gain $ (20,532 ) $ — $ (20,532 ) Prior service credit 4,992 386 5,378 Total amortization $ (15,540 ) $ 386 $ (15,154 ) The components of net periodic pension cost and the weighted-average assumptions used to determine net cost were as follows (dollars in thousands): 2015 2014 2013 Service cost $ 18,304 $ 14,573 $ 12,309 Interest cost 31,911 32,680 29,984 Expected return on plan assets (41,598 ) (41,592 ) (38,305 ) Recognized actuarial loss 25,674 19,861 28,454 Amortization of prior service cost (4,519 ) (4,507 ) (4,736 ) Net periodic pension cost $ 29,772 $ 21,015 $ 27,706 Discount rate 3.97 % 4.83 % 4.16 % Expected return on plan assets 7.45 % 8.00 % 8.00 % Rate of compensation increase 4.15 % 4.15 % 4.15 % The components of net periodic cost of other postretirement benefits and the weighted average discount rate used to determine net cost were as follows (dollars in thousands): 2015 2014 2013 Service cost $ 1,334 $ 1,067 $ 1,445 Interest cost 2,870 3,025 3,006 Amortization of prior service cost — (32 ) (147 ) Amortization of net (gain) loss — (237 ) — Net periodic cost of other postretirement benefits $ 4,204 $ 3,823 $ 4,304 Discount rate 3.95 % 4.74 % 3.89 % The assumed health care cost trend rates used to measure the expected cost of retirement health benefits was 6.7% for 2016 , gradually decreasing to 4.5% for 2026 and thereafter. A one-percentage-point change in the assumed health care cost trend rates would change the reported amounts as follows (in thousands): One-percentage-point change Increase Decrease Effect on total service and interest cost components for the year $ 318 $ (265 ) Effect on postretirement benefit obligation at year-end 1,695 (1,597 ) The pension plans’ investment objectives for fund assets are: to achieve over the life of the plans a return equal to the plans’ expected investment return or the inflation rate plus 3% , whichever is greater; to invest assets in a manner such that contributions are minimized and future assets are available to fund liabilities; to maintain liquidity sufficient to pay benefits when due; and to diversify among asset classes so that assets earn a reasonable return with an acceptable level of risk. The plans employ several active managers with proven long-term records in their specific investment discipline. Target allocations among asset categories and the fair values of each category of plan assets as of December 31, 2015 and 2014 , classified by level within the US GAAP fair value hierarchy is presented below. The plans will periodically reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in thousands): Target range Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2015: Equities: 53% to 69% U.S. large cap 22% to 28% $ 135,711 $ — $ 135,711 $ — U.S. small cap 4% to 10% 36,409 — 36,409 — International all cap 21% to 29% 128,427 — 128,427 — International small cap 2% to 8% 33,066 — 33,066 — Real estate equities 0% to 13% 49,899 — 49,899 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 11,863 1 11,862 — Aggregate 9% to 19% 75,910 — 75,910 — Core plus 9% to 19% 76,136 76,136 — — Group annuity contracts 3,323 — 3,323 — Total $ 550,744 $ 76,137 $ 474,607 $ — December 31, 2014: Equities: 53% to 69% U.S. large cap 22% to 28% $ 159,541 $ — $ 159,541 $ — U.S. small cap 4% to 10% 38,106 — 38,106 — International all cap 21% to 29% 135,947 — 135,947 — International small cap 2% to 8% 29,736 — 29,736 — Real estate equities 0% to 13% 45,758 — 45,758 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 8,416 1 8,415 — Aggregate 9% to 19% 85,412 — 85,412 — Core plus 9% to 19% 86,325 86,325 — — Group annuity contracts 2,719 — 2,719 — Total $ 591,960 $ 86,326 $ 505,634 $ — Assets in the U.S. equities category include investments in common and preferred stocks (and equivalents such as American Depository Receipts and convertible bonds) and may be held through separate accounts, commingled funds or an institutional mutual fund. Assets in the international equities category include investments in a broad range of international equity securities, including both developed and emerging markets, and may be held through a commingled or institutional mutual fund. The real estate category includes investments in pooled and commingled funds whose objectives are diversified equity investments in income-producing properties. Each real estate fund is intended to provide broad exposure to the real estate market by property type, geographic location and size and may invest internationally. Securities in both the aggregate and core plus fixed income categories include U.S. government, corporate, mortgage- and asset-backed securities and Yankee bonds, and both categories target an average credit rating of “A” or better at all times. Individual securities in the aggregate fixed income category must be investment grade or above at the time of purchase, whereas securities in the core plus category may have a rating of “B” or above. Additionally, the core plus category may invest in non-U.S. securities. Assets in the aggregate and core plus fixed income categories are held primarily through a commingled fund and an institutional mutual fund, respectively. Group annuity contracts are invested in a combination of equity, real estate, bond and other investments in connection with a pension plan in Norway. The following is a description of the valuation methodologies used for the pension plan assets at December 31, 2015 , and 2014 : • Fair values of all U.S. equity securities, the international all cap equity securities and aggregate fixed income securities categorized as Level 2 were held in commingled funds which were valued daily based on a net asset value. • Fair value of international small cap equity securities categorized as Level 2 were held in a limited partnership fund which was valued monthly based on a net asset value. • The real estate categorized as Level 2 was held in two accounts (a commingled fund and a limited partnership). The assets in the commingled fund were valued monthly based on a net asset value and the assets in the limited partnership were valued quarterly based on a net asset value. • Cash and equivalents categorized as Level 2 were valued at cost, which approximates fair value. • Fair value of mutual fund investments in core plus fixed income securities categorized as Level 1 were based on quoted market prices which represent the net asset value of shares held. To develop the expected long-term rate of return on assets assumption, the Company considered the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the plans’ other asset classes and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based upon the current asset allocation to develop the expected long-term rate of return on assets assumption for the plans, which was reduced to 7.30% at December 31, 2015 , from 7.45% at December 31, 2014 . The Company currently expects to contribute approximately $22 million to its pension plans in 2016 and to directly pay other postretirement benefits of approximately $9 million , net of estimated Medicare subsidy receipts. Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in thousands): Pension benefits Other postretirement benefits Year ended December 31, 2016 $ 98,110 $ 9,470 2017 41,980 5,310 2018 42,920 5,620 2019 44,450 5,960 2020 45,520 6,020 2021 through 2025 238,030 25,320 The Company sponsors defined contribution plans covering substantially all employees. Employer contributions to such plans are expensed as incurred and totaled $20.0 million in 2015 , $19.0 million in 2014 and $14.3 million in 2013 . |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Reclassifications from Accumulated Other Comprehensive Loss 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 (in thousands): 2015 2014 2013 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (25,674 ) $ (19,624 ) $ (28,454 ) Amortization of prior service credit 4,519 4,539 4,882 Total before income taxes (21,155 ) (15,085 ) (23,572 ) Income tax benefit 7,386 5,261 8,250 Total reclassifications for the period, net of income taxes $ (13,769 ) $ (9,824 ) $ (15,322 ) Cash Dividends During 2015, the Board of Directors approved quarterly cash dividends of $0.10 per Class A ordinary share, which were paid on March 3, May 26, August 25, and November 23, 2015, to shareholders of record at the close of business on February 9, May 12, August 11, and November 9, 2015, respectively. During 2014, the Board of Directors approved quarterly cash dividends of $0.10 per share, which were paid on May 20, August 26, and November 25, 2014, to shareholders of record at the close of business on May 5, August 11, and November 11, 2014, respectively. In January 2016, the Company announced that it had discontinued its quarterly dividend. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Rowan plc, the parent company, is domiciled in the U.K. and is subject to the U.K. statutory rate of 24% for the period January 1 through March 31, 2013, 23% for the financial year beginning April 1, 2013; 21% for the financial year beginning April 1, 2014; and 20% for the financial year beginning April 1, 2015. On November 18, 2015, the U.K. enacted tax law to reduce the tax rate to 19% for the financial year beginning April 1, 2017, and 18% for the financial year beginning April 1, 2020. We have computed our statutory tax rate for 2015 using a weighted average U.K. rate of 20.25% . The significant components of income taxes attributable to continuing operations are presented below (in thousands): 2015 2014 2013 Current: U.S. $ 7,422 $ (62,332 ) $ (38,025 ) Non - U.S. 50,823 53,494 31,932 State 33 151 (5,141 ) Current expense (benefit) 58,278 (8,687 ) (11,234 ) Deferred: U.S. (6,281 ) (140,305 ) 20,827 Non - U.S. 12,402 (1,740 ) (930 ) Deferred provision (benefit) 6,121 (142,045 ) 19,897 Total provision (benefit) $ 64,399 $ (150,732 ) $ 8,663 Differences between our provision for income taxes and the amount determined by applying the U.K. statutory rate to income before income taxes are set forth below (dollars in thousands): 2015 2014 2013 U.K. Statutory rate 20.25 % 21.50 % 23.25 % Tax at statutory rate $ 31,936 $ (57,965 ) $ 60,738 Increase (decrease) due to: Capitalized interest transactions (5,675 ) (20,145 ) (11,317 ) Tax audit settlements — 10,449 — Foreign rate differential (29,953 ) 38,216 (27,078 ) Deferred intercompany gain/loss (33,765 ) (86,635 ) (9,062 ) Change in valuation allowance 105,968 (3,570 ) 8,381 Prior period adjustments (6,913 ) 7,511 (9,837 ) Unrecognized tax benefits 9,715 (35,791 ) 17,544 Termination of local country activity (6,316 ) — — Foreign taxes of subsidiaries for which U.S. federal income taxes have been provided — — 9,155 Foreign tax credits/deductions (2,160 ) (4,925 ) (31,078 ) Other, net 1,562 2,123 1,217 Total provision (benefit) $ 64,399 $ (150,732 ) $ 8,663 Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in thousands): 2015 2014 Current Noncurrent Current Noncurrent Deferred tax assets: Accrued employee benefit plan costs $ 30,598 $ 107,264 $ 30,912 $ 118,096 U.S. net operating loss — 27,489 — 46,675 U.K. net operating loss — 2,808 — 2,708 Trinidad net operating loss — 7,659 — 13,034 Interest expense limitation carryforward — 42,129 — — Other NOLs and tax credit carryforwards — 33,059 819 23,634 Other 3,704 26,986 888 28,069 Total deferred tax assets 34,302 247,394 32,619 232,216 Less: valuation allowance (29,239 ) (99,068 ) — (22,339 ) Deferred tax assets, net of valuation allowance 5,063 148,326 32,619 209,877 Deferred tax liabilities: Property, plant and equipment — 296,610 — 369,095 Other 5,063 47,511 5,134 51,764 Total deferred tax liabilities 5,063 344,121 5,134 420,859 Net deferred tax asset (liability) $ — $ (195,795 ) $ 27,485 $ (210,982 ) Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The significant pieces of negative evidence evaluated were the cumulative losses among the U.S. subsidiaries incurred over the three-year period ended December 31, 2015, and the forecast taxable losses based on information as of December 31, 2015. Such evidence limits our ability to consider other positive evidence. On the basis of this evaluation, as of December 31, 2015, an additional valuation allowance of $62 million on the U.S. deferred tax assets has been recorded in 2015 to recognize only the portion of the deferred tax assets that more likely than not will be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if negative evidence in the form of cumulative losses is no longer present, and additional weight may be given to evidence such as our projections for growth. At December 31, 2015 , the Company had approximately $29 million of net operating loss carryforwards (NOLs) in the U.S., which expire at various times between 2034 and 2041 and which is subject to a valuation allowance as discussed in the preceding paragraph; $49 million of NOLs in the U.S. attributable to the Company’s non-U.S. subsidiaries expiring in 2032 and which is subject to a valuation allowance of $36 million at December 31, 2015 ; $16 million of non-expiring NOLs in the U.K., of which $16 million is subject to a valuation allowance; and $31 million of non-expiring NOLs in Trinidad, of which $18 million is subject to a valuation allowance. In addition, at December 31, 2015 , the Company had $6 million of non-expiring NOLs in other foreign jurisdictions, of which $6 million is subject to a valuation allowance. The U.S. foreign tax credit of $29 million is intended to be carried back and does not have a valuation allowance. The U.S. interest limitation carryforward which does not expire is subject to a valuation allowance of $42 million . Due to the uncertainty of realization, we have a tax-effected valuation allowance as of December 31, 2015 , in the amount of $128 million against our foreign tax credits, NOL carryforwards, interest limitation carryforwards, and other deferred tax assets that may not be realizable, primarily relating to countries where we no longer operate or do not expect to generate sufficient future taxable income. Management has determined that no other valuation allowances were necessary at December 31, 2015, as anticipated future tax benefits relating to all recognized deferred income tax assets are expected to be fully realized when measured against a more likely than not standard. The federal and foreign NOL carryforwards included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits. The Company has not provided deferred income taxes on undistributed earnings of the Company’s non-U.K. subsidiaries, including RCI’s non-U.S. subsidiaries. It is the Company’s policy and intention to permanently reinvest earnings of non-U.S. subsidiaries of RCI outside the U.S. The earnings of non-U.K. subsidiaries that are not subsidiaries of RCI can be distributed to Rowan plc without the imposition of either U.K. or local country tax. As of December 31, 2015 , RCI's portion of the unremitted earnings of its non-U.S. subsidiaries that could be includable in taxable income of RCI, if distributed, was approximately $336.8 million . Should the non-U.S. subsidiaries of RCI make a distribution from these earnings, we may be subject to additional U.S. income taxes. It is not practicable to estimate the amount of deferred tax liability related to the undistributed earnings, and RCI's non-U.S. subsidiaries have no plan to distribute earnings in a manner that would cause them to be subject to U.S., U.K., or other local country taxation. At December 31, 2015 , 2014 and 2013 , we had approximately $62 million , $48 million and $75 million , respectively, of net unrecognized tax benefits attributable to continuing operations. At December 31, 2015 , $62 million would reduce the Company’s income tax provision if recognized. The following table sets forth the changes in the Company’s gross unrecognized tax benefits for the years ended December 31 (in thousands): 2015 2014 2013 Gross unrecognized tax benefits - beginning of year $ 54,660 $ 81,920 $ 58,900 Gross increases - tax positions in prior period 4,425 19,928 11,021 Gross decreases - tax positions in prior period (3,700 ) (10,649 ) (4,114 ) Gross increases - current period tax positions 9,669 9,458 16,674 Settlements — (37,809 ) — Lapse of statute of limitations — (8,188 ) (561 ) Gross unrecognized tax benefit - end of year $ 65,054 $ 54,660 $ 81,920 Interest and penalties relating to income taxes are included in income tax expense. At December 31, 2015 , 2014 and 2013 , accrued interest was $7.9 million , $5.5 million and $2.4 million , respectively, and accrued penalties were $2.8 million , $2.6 million and $1.7 million , respectively. Accrued interest and penalties relating to uncertain tax positions that are not actually assessed will be reversed in the year of the resolution. 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 IRS. 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. The Company’s U.S. federal tax returns for 2009 through 2012 are currently under audit by the IRS. Various state tax returns for 2009 and subsequent years remain open for examination. In the Company’s non-U.S. tax jurisdictions, returns for 2006 and subsequent years remain open for examination. We are undergoing other routine tax examinations in various U.S. and non-US. taxing jurisdictions in which the Company has operated. These examinations cover various tax years and are in various stages of finalization. The Company believes that any income taxes ultimately assessed by any taxing authorities will not materially exceed amounts for which the Company has already provided. The components of income (loss) from continuing operations before income taxes were as follows (in thousands): 2015 2014 2013 U.S. $ (174,122 ) $ (198,300 ) $ 163,400 Non-U.S. 331,832 (71,300 ) 97,800 |
SEGMENT AND GEOGRAPHIC AREA INF
SEGMENT AND GEOGRAPHIC AREA INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC AREA INFORMATION | SEGMENT AND GEOGRAPHIC AREA INFORMATION Prior to 2015, we reported our results as one operating segment, contract drilling. In 2015, we reevaluated our operating segments in light of our management structure, which is now organized along the differences in the markets served by our drillships and jack-up rigs. As a result, we determined we operate in two principal operating segments – deepwater, which consists of our drillship operations, and jack-ups. Both segments provide one service – contract drilling. The Company evaluates performance primarily based on income from operations. The segment data which appears below is presented as though we operated in the two operating segments for each year presented. Depreciation and amortization and selling, general and administrative expenses related to our corporate and other administrative offices have not been allocated to our operating segments for purposes of measuring segment operating income and are included in the column "Unallocated costs and other." "Other operating items" includes, to the extent applicable, non-cash asset impairment charges, gains and losses on equipment sales, and gains and losses on litigation settlements (in thousands): Deepwater Jack-ups Segment total Unallocated costs and other Consolidated 2015: Revenues from external customers $ 747,792 $ 1,389,226 $ 2,137,018 $ — $ 2,137,018 Operating expenses: Direct operating costs (excluding items below) 276,542 716,545 993,087 — 993,087 Depreciation and amortization 94,613 283,905 378,518 12,900 391,418 Selling, general and administrative — — — 115,779 115,779 Other operating items — 328,818 328,818 826 329,644 Income (loss) from operations $ 376,637 $ 59,958 $ 436,595 $ (129,505 ) $ 307,090 Capital expenditures $ 555,127 $ 128,764 $ 683,891 $ 38,998 $ 722,889 Total assets (at end of year) $ 3,100,052 $ 4,437,914 $ 7,537,966 $ 809,301 $ 8,347,267 2014: Revenues from external customers $ 179,834 $ 1,644,549 $ 1,824,383 $ — $ 1,824,383 Operating expenses: Direct operating costs (excluding items below) 87,778 903,562 991,340 — 991,340 Depreciation and amortization 24,410 283,542 307,952 14,689 322,641 Selling, general and administrative — — — 125,834 125,834 Other operating items — 544,775 544,775 6,522 551,297 Income (loss) from operations $ 67,646 $ (87,330 ) $ (19,684 ) $ (147,045 ) $ (166,729 ) Capital expenditures $ 1,577,257 $ 345,260 $ 1,922,517 $ 35,710 $ 1,958,227 Total assets (at end of year) $ 2,665,089 $ 5,162,977 $ 7,828,066 $ 564,284 $ 8,392,350 2013: Revenues from external customers $ — $ 1,579,284 $ 1,579,284 $ — $ 1,579,284 Operating expenses: Direct operating costs (excluding items below) — 860,893 860,893 — 860,893 Depreciation and amortization — 261,283 261,283 9,725 271,008 Selling, general and administrative — — — 131,373 131,373 Other operating items — (14,624 ) (14,624 ) (1,042 ) (15,666 ) Income (loss) from operations $ — $ 471,732 $ 471,732 $ (140,056 ) $ 331,676 Capital expenditures $ 241,997 $ 323,862 $ 565,859 $ 41,452 $ 607,311 The classifications of revenues and assets among geographic areas in the tables which follow were determined based on the physical location of assets. Because the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenues are earned, and may vary from one period to the next. Revenues by geographic area are set forth below (in thousands): 2015 2014 2013 United States $ 704,638 $ 283,835 $ 240,820 Saudi Arabia 408,655 443,873 412,799 Norway 403,636 213,393 168,931 United Kingdom 163,037 288,248 327,217 Trinidad 141,749 94,722 101,262 Angola 96,429 80,499 — Malaysia 73,733 93,962 127,216 Qatar 54,029 53,522 21,938 Tunisia 36,642 18,590 — Spain (Canary Islands) 27,458 36,956 — Indonesia 27,012 125,851 90,027 Morocco — 33,027 — Egypt — 32,426 89,074 Namibia — 25,479 — Consolidated revenues $ 2,137,018 $ 1,824,383 $ 1,579,284 Long-lived assets by geographic area at December 31 are set forth below (in thousands): 2015 2014 United States $ 3,522,701 $ 1,374,420 Norway 1,330,009 1,394,994 Saudi Arabia 896,754 932,714 United Kingdom 827,533 842,666 Trinidad 431,223 238,697 Malaysia 365,921 383,308 Qatar 31,657 46,156 Angola 34 33 Rigs under construction — 1,023,647 Spain (Canary Islands) — 759,275 Indonesia — 221,512 Tunisia — 214,790 Consolidated long-lived assets $ 7,405,832 $ 7,432,212 |
MATERIAL CHARGES AND OTHER OPER
MATERIAL CHARGES AND OTHER OPERATING EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Material Charges and Other Operating Expenses [Abstract] | |
MATERIAL CHARGES AND OTHER OPERATING EXPENSES | MATERIAL CHARGES AND OTHER OPERATING EXPENSES Operating expenses in 2015 included non-cash asset impairment charges totaling $ 329.8 million on ten jack-up drilling units and a $7.6 million charge for the termination of a contract in connection with refurbishment work on the Rowan Gorilla III. Operating expenses in 2014 included non-cash asset impairment charges aggregating $574.0 million , including $565.7 million in connection with twelve of the Company's oldest jack-up drilling units and $8.3 million for a Company aircraft, which we sold later in 2014 at an immaterial loss. Operating expenses in 2013 included a $4.5 million non-cash impairment charge on a dock and storage facility. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Non-cash investing and financing activities and other supplemental cash flow information follows (in thousands): 2015 2014 2013 Accrued but unpaid additions to property and equipment at December 31 $ 32,246 $ 48,646 $ 49,220 Cash interest payments in excess of interest capitalized 143,829 78,744 65,824 Income tax payments (refunds), net 37,455 8,549 (5,929 ) |
GUARANTEES OF REGISTERED SECURI
GUARANTEES OF REGISTERED SECURITIES | 12 Months Ended |
Dec. 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 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. Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Receivables - trade and other 110 1,369 409,040 — 410,519 Other current assets 394 19,230 6,904 — 26,528 Total current assets 17,801 30,105 873,369 — 921,275 Property, plant and equipment - gross — 592,809 8,475,284 — 9,068,093 Less accumulated depreciation and amortization — 242,665 1,419,596 — 1,662,261 Property, plant and equipment - net — 350,144 7,055,688 — 7,405,832 Investments in subsidiaries 4,763,306 6,028,242 — (10,791,548 ) — Due from affiliates 629 1,218,233 55,751 (1,274,613 ) — Other assets — 4,999 15,161 — 20,160 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 CURRENT LIABILITIES: Accounts payable - trade $ 960 $ 19,111 $ 89,503 $ — $ 109,574 Deferred revenues — 6 33,056 — 33,062 Accrued liabilities 778 119,388 65,869 — 186,035 Total current liabilities 1,738 138,505 188,428 — 328,671 Long-term debt — 2,692,419 — — 2,692,419 Due to affiliates 2,880 55,750 1,215,983 (1,274,613 ) — Other liabilities 4,659 304,709 48,555 — 357,923 Deferred income taxes - net — 522,927 150,822 (477,954 ) 195,795 Shareholders' equity 4,772,459 3,917,413 6,396,181 (10,313,594 ) 4,772,459 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2014 (in thousands) Rowan Companies 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 45,829 8,328 — 54,581 Total current assets 46,359 98,726 793,854 — 938,939 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 — 1,418 19,781 — 21,199 $ 4,707,819 $ 7,715,283 $ 7,978,944 $ (12,009,696 ) $ 8,392,350 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 — 2,788,482 — — 2,788,482 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 $ 7,715,283 $ 7,978,944 $ (12,009,696 ) $ 8,392,350 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 60,059 $ 2,133,365 $ (56,406 ) $ 2,137,018 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 14,991 1,028,449 (50,353 ) 993,087 Depreciation and amortization — 19,535 370,415 1,468 391,418 Selling, general and administrative 26,181 5,378 91,741 (7,521 ) 115,779 Loss (gain) on disposals of property and equipment — 930 (8,633 ) — (7,703 ) Material charges and other operating expenses — — 337,347 — 337,347 Total costs and expenses 26,181 40,834 1,819,319 (56,406 ) 1,829,928 INCOME (LOSS) FROM OPERATIONS (26,181 ) 19,225 314,046 — 307,090 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (145,317 ) (22,817 ) 22,817 (145,317 ) Interest income 823 22,064 1,059 (22,817 ) 1,129 Loss on debt extinguishment — (1,482 ) — — (1,482 ) Other - net 22,310 (22,026 ) (3,994 ) — (3,710 ) Total other income (expense) - net 23,133 (146,761 ) (25,752 ) — (149,380 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,048 ) (127,536 ) 288,294 — 157,710 Provision (benefit) for income taxes — 30,515 48,600 (14,716 ) 64,399 NET INCOME (LOSS) FROM CONTINUING OPERATIONS (3,048 ) (158,051 ) 239,694 14,716 93,311 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX 96,359 (133,997 ) — 37,638 — NET INCOME (LOSS) $ 93,311 $ (292,048 ) $ 239,694 $ 52,354 $ 93,311 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 63,811 $ 1,824,623 $ (64,051 ) $ 1,824,383 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 3,699 1,048,235 (60,594 ) 991,340 Depreciation and amortization — 13,767 307,693 1,181 322,641 Selling, general and administrative 26,337 17 104,118 (4,638 ) 125,834 Loss (gain) on disposals of property and equipment — (4,986 ) 3,208 — (1,778 ) Litigation settlement — — (20,875 ) — (20,875 ) Material charges and other operating expenses — 12,191 561,759 — 573,950 Total costs and expenses 26,337 24,688 2,004,138 (64,051 ) 1,991,112 INCOME (LOSS) FROM OPERATIONS (26,337 ) 39,123 (179,515 ) — (166,729 ) OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (103,934 ) (3,102 ) 3,102 (103,934 ) Interest income 340 3,558 1,065 (3,102 ) 1,861 Other - net 22,402 (22,291 ) (916 ) — (805 ) Total other income (expense) - net 22,742 (122,667 ) (2,953 ) — (102,878 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,595 ) (83,544 ) (182,468 ) — (269,607 ) Provision (benefit) for income taxes — (116,790 ) (36,255 ) 2,313 (150,732 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS (3,595 ) 33,246 (146,213 ) (2,313 ) (118,875 ) DISCONTINUED OPERATIONS, NET OF TAX — 4,023 — — 4,023 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX (111,257 ) (142,289 ) — 253,546 — NET INCOME (LOSS) $ (114,852 ) $ (105,020 ) $ (146,213 ) $ 251,233 $ (114,852 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 114,673 $ 1,573,111 $ (108,500 ) $ 1,579,284 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 11,421 957,972 (108,500 ) 860,893 Depreciation and amortization — 39,658 231,350 — 271,008 Selling, general and administrative 28,456 3,119 99,798 — 131,373 Loss (gain) on disposals of property and equipment — 130 (20,249 ) — (20,119 ) Material charges and other operating expenses — — 4,453 — 4,453 Total costs and expenses 28,456 54,328 1,273,324 (108,500 ) 1,247,608 INCOME (LOSS) FROM OPERATIONS (28,456 ) 60,345 299,787 — 331,676 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (69,794 ) (213 ) 213 (69,794 ) Interest income 210 528 1,053 (213 ) 1,578 Other - net 9,997 (9,915 ) (2,303 ) — (2,221 ) Total other income (expense) - net 10,207 (79,181 ) (1,463 ) — (70,437 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (18,249 ) (18,836 ) 298,324 — 261,239 Provision (benefit) for income taxes — (21,757 ) 54,865 (24,445 ) 8,663 NET INCOME (LOSS) FROM CONTINUING OPERATIONS (18,249 ) 2,921 243,459 24,445 252,576 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX 270,825 114,805 — (385,630 ) — NET INCOME $ 252,576 $ 117,726 $ 243,459 $ (361,185 ) $ 252,576 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 93,311 $ (292,048 ) $ 239,694 $ 52,354 $ 93,311 OTHER COMPREHENSIVE INCOME (LOSS): Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes 6,964 6,964 — (6,964 ) 6,964 Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 13,769 13,769 — (13,769 ) 13,769 — 20,733 20,733 — (20,733 ) 20,733 COMPREHENSIVE INCOME (LOSS) $ 114,044 $ (271,315 ) $ 239,694 $ 31,621 $ 114,044 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET LOSS $ (114,852 ) $ (105,020 ) $ (146,213 ) $ 251,233 $ (114,852 ) OTHER COMPREHENSIVE INCOME (LOSS): Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes (87,293 ) (87,293 ) — 87,293 (87,293 ) Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 9,824 9,824 — (9,824 ) 9,824 (77,469 ) (77,469 ) — 77,469 (77,469 ) COMPREHENSIVE LOSS $ (192,321 ) $ (182,489 ) $ (146,213 ) $ 328,702 $ (192,321 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME $ 252,576 $ 117,726 $ 243,459 $ (361,185 ) $ 252,576 OTHER COMPREHENSIVE INCOME: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes 63,315 63,315 — (63,315 ) 63,315 Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 15,322 15,322 — (15,322 ) 15,322 78,637 78,637 — (78,637 ) 78,637 COMPREHENSIVE INCOME $ 331,213 $ 196,363 $ 243,459 $ (439,822 ) $ 331,213 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (7,544 ) $ 4,783 $ 1,047,132 $ (47,379 ) $ 996,992 INVESTING ACTIVITIES: Property, plant and equipment additions — (23,270 ) (699,619 ) — (722,889 ) Proceeds from disposals of property, plant and equipment — 2,852 16,521 — 19,373 Advances on subsidiary note receivable — (481,300 ) — 481,300 — Collections on subsidiary note receivable 36,593 503,490 — (540,083 ) — Investments in consolidated subsidiaries 250 (37,704 ) — 37,454 — Net cash provided by (used in) investing activities 36,843 (35,932 ) (683,098 ) (21,329 ) (703,516 ) FINANCING ACTIVITIES: Advances (to) from affiliates (7,399 ) 89,965 (80,945 ) (1,621 ) — Contributions from parent — — 37,454 (37,454 ) — Proceeds from borrowings — 220,000 481,300 (481,300 ) 220,000 Dividends paid (50,512 ) — (49,000 ) 49,000 (50,512 ) Repayments of borrowings — (317,890 ) (540,083 ) 540,083 (317,890 ) Net cash provided by (used in) financing activities (57,911 ) (7,925 ) (151,274 ) 68,708 (148,402 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (28,612 ) (39,074 ) 212,760 — 145,074 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 45,909 48,580 244,665 — 339,154 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 63,769 $ 82,504 $ 452,905 $ (176,219 ) $ 422,959 INVESTING ACTIVITIES: Property, plant and equipment additions — (21,079 ) (1,937,148 ) — (1,958,227 ) Proceeds from disposals of property, plant and equipment — 14,574 7,413 — 21,987 Investments in consolidated subsidiaries — (105,261 ) — 105,261 — Net cash used in investing activities — (111,766 ) (1,929,735 ) 105,261 (1,936,240 ) FINANCING ACTIVITES: Advances (to) from affiliates (49,182 ) (731,835 ) 782,198 (1,181 ) — Contributions from parent — — 105,261 (105,261 ) — Proceeds from borrowings — 793,380 — — 793,380 Debt issue costs — (687 ) — — (687 ) Dividends paid (37,695 ) (75,000 ) (102,400 ) 177,400 (37,695 ) Excess tax benefits from share-based compensation — (132 ) — — (132 ) Proceeds from exercise of share options 4,725 — — — 4,725 Net cash provided by (used in) financing activities (82,152 ) (14,274 ) 785,059 70,958 759,591 DECREASE IN CASH AND CASH EQUIVALENTS (18,383 ) (43,536 ) (691,771 ) — (753,690 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 64,292 92,116 936,436 — 1,092,844 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 45,909 $ 48,580 $ 244,665 $ — $ 339,154 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (13,993 ) $ 160,703 $ 476,466 $ — $ 623,176 INVESTING ACTIVITIES: Property, plant and equipment additions — (49,594 ) (557,717 ) — (607,311 ) Proceeds from disposals of property, plant and equipment — 2,432 42,118 — 44,550 Investments in consolidated subsidiaries (100 ) (162,379 ) — 162,479 — Net cash used in investing activities (100 ) (209,541 ) (515,599 ) 162,479 (562,761 ) FINANCING ACTIVITIES: Advances (to) from affiliates 15,026 (90,821 ) 75,795 — — Contributions from parent — — 162,479 (162,479 ) — Proceeds from exercise of share options 2,911 — — — 2,911 Excess tax benefits from share-based compensation — 3,690 — — 3,690 Other 1,820 — — — 1,820 Net cash provided by (used in) financing activities 19,757 (87,131 ) 238,274 (162,479 ) 8,421 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,664 (135,969 ) 199,141 — 68,836 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 58,628 228,085 737,295 — 1,024,008 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 64,292 $ 92,116 $ 936,436 $ — $ 1,092,844 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue and Expense Recognition | Revenue and Expense Recognition Our drilling contracts generally provide for payment on a daily rate basis, and revenues are recognized as the work progresses with the passage of time. We occasionally receive lump-sum payments at the outset of a drilling assignment for equipment moves or modifications. Lump-sum fees received for equipment moves (and related costs) and fees received for equipment modifications or upgrades are initially deferred and amortized on a straight-line basis over the primary term of the drilling contract. The costs of contractual equipment modifications or upgrades and the costs of the initial move of newly acquired rigs are capitalized and depreciated in accordance with the Company’s fixed asset capitalization policy. The costs of moving equipment while not under contract are expensed as incurred. Revenues received but unearned are included in current and long-term liabilities and totaled $50.8 million and $60.2 million at December 31, 2015 and 2014 , respectively. Deferred contract costs are included in prepaid expenses and other assets and totaled $4.4 million and $5.4 million at December 31, 2015 and 2014 , respectively. We recognize revenue for certain reimbursable costs. Each reimbursable item and amount is stipulated in the Company’s contract with the customer, and such items and amounts frequently vary between contracts. We recognize reimbursable costs on the gross basis, as both revenues and expenses, because we are the primary obligor in the arrangement, have discretion in supplier selection, are involved in determining product or service specifications and assume full credit risk related to the reimbursable costs. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid temporary cash investments with maturities no greater than three months at the time of purchase. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company assesses the collectability of receivables and records adjustments to an allowance for doubtful accounts, which is recorded as an offset to accounts receivable, to cover the risk of credit losses. The allowance is based on historical and other factors that predict collectability, including write-offs, recoveries and the monitoring of credit quality. |
Property and Depreciation | Property and Depreciation We provide depreciation for financial reporting purposes under the straight-line method over the asset’s estimated useful life from the date the asset is placed into service until it is sold or becomes fully depreciated. In 2014, we reduced salvage values for our jack-up rigs from 20 percent to 10 percent of historical cost effective December 31, 2014, in connection with the completion of our asset impairment test. Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 5 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 5 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various Expenditures for new property or enhancements to existing property are capitalized and depreciated over the asset’s estimated useful life. As assets are sold or retired, property cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in results of operations. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets We review the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. For assets held and used, we determine recoverability by evaluating the undiscounted estimated future net cash flows based on projected day rates, operating costs and utilization of the asset under review. When the impairment of an asset is indicated, we measure the amount of impairment as the amount by which the asset’s carrying amount exceeds its estimated fair value. We measure fair value by estimating discounted future net cash flows under various operating scenarios (an income approach) and by assigning probabilities to each scenario in order to determine an expected value. The lowest level of inputs we use to value assets held and used in the business are categorized as “significant unobservable inputs,” which are Level 3 inputs in the fair value hierarchy. For assets held for sale, we measure fair value based on equipment broker quotes, less anticipated selling costs, which are considered Level 3 inputs in the fair value hierarchy. |
Share-based Compensation | me. Share-based Compensation We recognize compensation cost for employee share-based awards on a straight-line basis over the requisite 36 -month service period. For employees who are retirement-eligible at the grant date or who will become retirement-eligible within six months of the grant date, compensation cost is recognized over a minimum period of six months. Compensation cost for employees who become retirement eligible after six months following the grant date but before the 36 -month maximum service period is amortized over the period from the grant date to the date the employee meets the retirement eligibility requirements. Fair value of restricted shares and restricted share units awarded to employees is based on the market price of the stock on the date of grant. Compensation cost is recognized for awards that are expected to vest and is adjusted in subsequent periods if actual forfeitures differ from estimates. Restricted share units granted to non-employee directors ("Director RSUs") vest one year following the grant date but may not be settled until the director terminates service from the board. Compensation cost is recognized over the one -year service period. Director RSUs may be settled in cash and/or shares of stock and are accounted for under the liability method of accounting. Fair value is based on the market price of the underlying stock on the grant date, and compensation expense is adjusted for changes in fair value at each report date through the settlement date. Performance-based awards consist of Performance Units, in which the payment is contingent on the Company's total shareholder return relative to an industry peer group. Fair value of Performance Units is determined using a Monte-Carlo simulation model. Performance Units are settled in cash and accounted for under the liability method of accounting. Compensation cost is recognized on a straight-line basis over the service period and is adjusted for changes in fair value at each report date through the vest date. Fair value of share appreciation rights ("SARs") is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of SARs, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company has not granted any SARs since 2013. The Company intends to share-settle SARs that are exercised and has therefore accounted for them as equity awards. |
Foreign Currency Transactions | Foreign Currency Transactions A substantial majority of our revenues are received in U.S. dollars, which is our functional currency. However, in certain countries in which we operate, local laws or contracts may require us to receive payment in the local currency. We are exposed to foreign currency exchange risk to the extent the amount of our monetary assets denominated in the foreign currency differs from our obligations in that foreign currency. In order to mitigate the effect of exchange rate risk, we attempt to limit foreign currency holdings to the extent they are needed to pay liabilities in the local currency. In the past, we have entered into spot purchases or short-term derivative transactions, such as forward exchange contracts, with one-month durations. We did not enter into such transactions for the purpose of speculation, trading or investing in the market and we believe that our use of forward exchange contracts has not exposed us to material credit risk or other material market risk. Although our risk policy allows us to enter into such forward exchange contracts, we do not currently anticipate entering into such transactions in the future and had no such contracts outstanding as of December 31, 2015 . |
Income Taxes | Income Taxes Rowan recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. Interest and penalties related to income taxes are included in income tax expense. The Company does not provide deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. subsidiaries of the Company's wholly owned subsidiary, Rowan Companies Inc. (RCI). It is the Company’s policy and intention to permanently reinvest earnings of non-U.S. subsidiaries of RCI outside the U.S. Should the non-U.S. subsidiaries of RCI make a distribution from these earnings, we may be subject to additional U.S. income taxes. Generally, earnings of non-U.K. subsidiaries in which RCI does not have a direct or indirect ownership interest can be distributed to the Company without the imposition of either U.K. or local country tax. See Note 11 for further information regarding the Company’s income taxes. |
Income Per Common Share | Income Per Common Share Basic income per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional effect of all potentially dilutive securities outstanding during the period, which includes nonvested restricted stock, restricted stock units, share options and appreciation rights granted under share-based compensation plans. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2018. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are evaluating the standard and have not yet determined our implementation method upon adoption or what impact adoption will have on our financial statements. 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 periods 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. We adopted the new standard effective December 31, 2015. As a result of adoption, we reclassified unamortized debt issue costs in the amount of $16.4 million and $18.8 million as of December 31, 2015 and 2014, respectively, and reduced the carrying value of long-term debt by the same amounts. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities in balance sheets as noncurrent. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2017, with early adoption permitted. The amendments in this ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We are evaluating the standard and have not yet determined our implementation method. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for leases previously classified as operating leases under prior GAAP. We will be required to adopt the new standard in annual and interim periods beginning January 1, 2019. Lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. We have not yet evaluated the standard nor determined our implementation method upon adoption or what impact adoption will have on our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Components of Receivables and other | The following table sets forth the components of Receivables - trade and other at December 31 (in thousands): 2015 2014 Trade $ 395,694 $ 524,712 Income tax 4,463 6,315 Other 10,362 14,177 Total receivables - trade and other $ 410,519 $ 545,204 |
Schedule of asset estimated useful life and salvage value | Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 5 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 5 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various |
Reconciliation of shares for basic and diluted income per share | A reconciliation of shares for basic and diluted income per share is set forth below. There were no income adjustments to the numerators of the basic or diluted computations for the periods presented (in thousands): 2015 2014 2013 Average common shares outstanding 124,508 124,067 123,517 Add dilutive securities: Nonvested restricted shares and restricted share units 585 — 542 Share options and appreciation rights 110 — 409 Average shares for diluted computations 125,203 124,067 124,468 |
Schedule of antidilutive securities | Antidilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in thousands): 2015 2014 2013 Share options and appreciation rights 1,249 2,234 1,065 Nonvested restricted shares and restricted share units 1,092 619 — Total potentially dilutive shares 2,341 2,853 1,065 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | |
Accrued liabilities | Accrued liabilities at December 31 consisted of the following (in thousands): 2015 2014 Pension and other postretirement benefits $ 31,389 $ 26,219 Compensation and related employee costs 73,628 88,186 Interest 44,338 47,414 Income taxes 23,927 13,265 Other 12,753 19,175 Total accrued liabilities $ 186,035 $ 194,259 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt at December 31 consisted of the following (in thousands): 2015 2014 5% Senior Notes, due September 2017 ($366.6 million principal amount; 5.1% effective rate) $ 365,494 $ 398,009 7.875% Senior Notes, due August 2019 ($435.5 million principal amount; 8.0% effective rate) 432,870 496,150 4.875% Senior Notes, due June 2022 ($700 million principal amount; 4.6% effective rate) 706,236 707,206 4.75% Senior Notes, due January 2024 ($400 million principal amount; 4.8% effective rate) 397,069 396,704 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.5% effective rate) 394,720 394,524 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396,030 395,889 Total long-term debt $ 2,692,419 $ 2,788,482 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on recurring basis | Assets and liabilities measured at fair value on a recurring basis at December 31 are presented below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2015: Assets - cash equivalents $ 465,388 $ 465,388 $ — $ — Other assets 13,508 13,508 — — December 31, 2014: Assets - cash equivalents $ 314,570 $ 314,570 $ — $ — Other assets 16,304 16,304 — — |
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis and whose carrying values were remeasured during the year ended December 31 are set forth below (in thousands): Estimated fair value measurements Carrying value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total gains (losses) 2015: Property and equipment, net $ 128,018 $ — $ — $ 128,018 $ (329,781 ) 2014: Property and equipment, net $ 275,148 $ — $ — $ 275,148 $ (565,650 ) |
COMMITMENTS AND CONTINGENT LI30
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments to be made under noncancelable operating leases | At December 31, 2015 , future minimum payments to be made under noncancelable operating leases were as follows (in thousands): 2016 $ 7,125 2017 5,770 2018 5,669 2019 5,673 2020 3,997 Later years 12,040 $ 40,274 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation cost charged to expense under all share-based incentive awards | Compensation cost charged to expense under all share-based incentive awards is presented below (in thousands): 2015 2014 2013 Restricted shares and restricted share units $ 22,462 $ 23,577 $ 23,786 Share appreciation rights 1,147 3,724 6,412 Share options — — 23 Performance-based awards 10,018 7,246 3,710 Total compensation cost $ 33,627 $ 34,547 $ 33,931 |
Restricted share activity | Restricted share activity for the year ended December 31, 2015 , is summarized below: Number of Shares Weighted-average grant-date fair value per share Nonvested at January 1, 2015 210,554 $ 35.13 Vested (206,180 ) 35.14 Forfeited (1,874 ) 35.47 Nonvested at December 31, 2015 2,500 $ 33.88 |
Employee restricted share unit activity | Employee RSU activity for the year ended December 31, 2015 , follows: Number of Shares Weighted-average grant-date fair value per share Nonvested at January 1, 2015 1,132,153 $ 33.05 Granted 1,222,777 21.11 Vested (440,083 ) 33.06 Forfeited (171,121 ) 25.42 Nonvested at December 31, 2015 1,743,726 $ 25.42 |
Non-employee director restricted share units activity | Non-employee director RSU activity for the year ended December 31, 2015 , follows: Number of shares Weighted-average grant-date fair value per share Outstanding at January 1, 2015 267,438 $ 32.04 Granted 77,040 20.96 Settled (44,336 ) 32.85 Outstanding at December 31, 2015 300,142 $ 29.51 Vested at December 31, 2015 229,101 $ 32.11 |
Weighted-average assumptions used to determine fair values of SARs | Fair values of SARs granted were determined using the Black-Scholes option pricing model with the following weighted-average assumptions: 2013 Expected life in years 6.0 Risk-free interest rate 1.058% Expected volatility 41.11% Weighted-average grant-date per-share fair value $13.91 |
Stock appreciation rights activity | SARs activity for the year ended December 31, 2015 , is summarized below: Number of shares under SARs Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 1,761,270 $ 30.94 Forfeited or expired (145,968 ) 34.10 Outstanding at December 31, 2015 1,615,302 $ 30.66 4.3 $ — Exercisable at December 31, 2015 1,497,425 $ 30.37 4.1 $ — |
Share option activity | Share option activity for the year ended December 31, 2015 , is summarized below: Number of shares under option Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 185,404 $ 22.96 Forfeited or expired (60,372 ) 26.97 Outstanding at December 31, 2015 125,032 $ 21.02 2.4 $ 164 Exercisable at December 31, 2015 125,032 $ 21.02 2.4 $ 164 |
PENSION AND OTHER POSTRETIREM32
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Changes in benefit obligations and plan assets and funded status and weighted-average assumptions used to determine the benefit obligation | The following table presents the changes in benefit obligations and plan assets for the years ended December 31 and the funded status and weighted-average assumptions used to determine the benefit obligation at each year end (dollars in thousands): 2015 2014 Pension benefits Other benefits Total Pension benefits Other benefits Total Projected benefit obligations: Balance, January 1 $ 807,953 $ 73,578 $ 881,531 $ 679,880 $ 66,832 $ 746,712 Interest cost 31,911 2,870 34,781 32,680 3,025 35,705 Service cost 18,304 1,334 19,638 14,573 1,067 15,640 Actuarial (gain) loss (40,265 ) 480 (39,785 ) 114,030 6,779 120,809 Plan amendments (4,900 ) (7,188 ) (12,088 ) 259 — 259 Exchange rate changes (1,027 ) — (1,027 ) (1,215 ) — (1,215 ) Benefits paid (51,923 ) (4,408 ) (56,331 ) (32,254 ) (4,125 ) (36,379 ) Balance, December 31 760,053 66,666 826,719 807,953 73,578 881,531 Plan assets: Fair value, January 1 591,960 — 591,960 542,449 — 542,449 Actual return (74 ) — (74 ) 27,596 — 27,596 Employer contributions 11,339 — 11,339 54,834 — 54,834 Exchange rate changes (558 ) — (558 ) (665 ) — (665 ) Benefits paid (51,923 ) — (51,923 ) (32,254 ) — (32,254 ) Fair value, December 31 550,744 — 550,744 591,960 — 591,960 Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (22,249 ) $ (9,140 ) $ (31,389 ) $ (21,839 ) $ (4,380 ) $ (26,219 ) Other liabilities (long-term) (187,060 ) (57,526 ) (244,586 ) (194,154 ) (69,198 ) (263,352 ) Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Accumulated contributions in excess of (less than) net periodic benefit cost $ 106,074 $ (75,318 ) $ 30,756 $ 124,248 $ (75,522 ) $ 48,726 Amounts not yet reflected in net periodic benefit cost: Actuarial (loss) gain (336,670 ) 1,464 (335,206 ) (360,753 ) 1,944 (358,809 ) Prior service credit 21,287 7,188 28,475 20,512 — 20,512 Total accumulated other comprehensive loss (315,383 ) 8,652 (306,731 ) (340,241 ) 1,944 (338,297 ) Net benefit liabilities $ (209,309 ) $ (66,666 ) $ (275,975 ) $ (215,993 ) $ (73,578 ) $ (289,571 ) Weighted-average assumptions: Discount rate 4.54 % 4.18 % 4.12 % 3.95 % Rate of compensation increase 4.15 % 4.15 % |
Accumulated benefit obligations | The accumulated benefit obligations, which are presented below for all plans in the aggregate at December 31, are based on services rendered to date, but exclude the effect of future salary increases (in thousands): 2015 2014 Accumulated benefit obligation $ 755,050 $ 801,749 |
Amounts amortized from accumulated other comprehensive to net periodic benefits cost | The Company estimates the following amounts, which are classified in accumulated other comprehensive loss, a component of shareholders’ equity, will be recognized as net periodic benefit cost in 2016 (in thousands): Pension benefits Other retirement benefits Total Actuarial (loss) gain $ (20,532 ) $ — $ (20,532 ) Prior service credit 4,992 386 5,378 Total amortization $ (15,540 ) $ 386 $ (15,154 ) |
Components of net periodic pension cost and weighted-average assumptions used to determine net cost | The components of net periodic pension cost and the weighted-average assumptions used to determine net cost were as follows (dollars in thousands): 2015 2014 2013 Service cost $ 18,304 $ 14,573 $ 12,309 Interest cost 31,911 32,680 29,984 Expected return on plan assets (41,598 ) (41,592 ) (38,305 ) Recognized actuarial loss 25,674 19,861 28,454 Amortization of prior service cost (4,519 ) (4,507 ) (4,736 ) Net periodic pension cost $ 29,772 $ 21,015 $ 27,706 Discount rate 3.97 % 4.83 % 4.16 % Expected return on plan assets 7.45 % 8.00 % 8.00 % Rate of compensation increase 4.15 % 4.15 % 4.15 % The components of net periodic cost of other postretirement benefits and the weighted average discount rate used to determine net cost were as follows (dollars in thousands): 2015 2014 2013 Service cost $ 1,334 $ 1,067 $ 1,445 Interest cost 2,870 3,025 3,006 Amortization of prior service cost — (32 ) (147 ) Amortization of net (gain) loss — (237 ) — Net periodic cost of other postretirement benefits $ 4,204 $ 3,823 $ 4,304 Discount rate 3.95 % 4.74 % 3.89 % |
Effect of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in the assumed health care cost trend rates would change the reported amounts as follows (in thousands): One-percentage-point change Increase Decrease Effect on total service and interest cost components for the year $ 318 $ (265 ) Effect on postretirement benefit obligation at year-end 1,695 (1,597 ) |
Target allocations among asset categories and fair values of each category of plan assets, classified by level within fair value hierarchy | Target allocations among asset categories and the fair values of each category of plan assets as of December 31, 2015 and 2014 , classified by level within the US GAAP fair value hierarchy is presented below. The plans will periodically reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in thousands): Target range Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2015: Equities: 53% to 69% U.S. large cap 22% to 28% $ 135,711 $ — $ 135,711 $ — U.S. small cap 4% to 10% 36,409 — 36,409 — International all cap 21% to 29% 128,427 — 128,427 — International small cap 2% to 8% 33,066 — 33,066 — Real estate equities 0% to 13% 49,899 — 49,899 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 11,863 1 11,862 — Aggregate 9% to 19% 75,910 — 75,910 — Core plus 9% to 19% 76,136 76,136 — — Group annuity contracts 3,323 — 3,323 — Total $ 550,744 $ 76,137 $ 474,607 $ — December 31, 2014: Equities: 53% to 69% U.S. large cap 22% to 28% $ 159,541 $ — $ 159,541 $ — U.S. small cap 4% to 10% 38,106 — 38,106 — International all cap 21% to 29% 135,947 — 135,947 — International small cap 2% to 8% 29,736 — 29,736 — Real estate equities 0% to 13% 45,758 — 45,758 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 8,416 1 8,415 — Aggregate 9% to 19% 85,412 — 85,412 — Core plus 9% to 19% 86,325 86,325 — — Group annuity contracts 2,719 — 2,719 — Total $ 591,960 $ 86,326 $ 505,634 $ — |
Estimated future annual payments for pension and other postretirement benefits | Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in thousands): Pension benefits Other postretirement benefits Year ended December 31, 2016 $ 98,110 $ 9,470 2017 41,980 5,310 2018 42,920 5,620 2019 44,450 5,960 2020 45,520 6,020 2021 through 2025 238,030 25,320 |
SHAREHOLDERS' EQUITY SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | 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 (in thousands): 2015 2014 2013 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (25,674 ) $ (19,624 ) $ (28,454 ) Amortization of prior service credit 4,519 4,539 4,882 Total before income taxes (21,155 ) (15,085 ) (23,572 ) Income tax benefit 7,386 5,261 8,250 Total reclassifications for the period, net of income taxes $ (13,769 ) $ (9,824 ) $ (15,322 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Significant components of income taxes attributable to continuing operations | The significant components of income taxes attributable to continuing operations are presented below (in thousands): 2015 2014 2013 Current: U.S. $ 7,422 $ (62,332 ) $ (38,025 ) Non - U.S. 50,823 53,494 31,932 State 33 151 (5,141 ) Current expense (benefit) 58,278 (8,687 ) (11,234 ) Deferred: U.S. (6,281 ) (140,305 ) 20,827 Non - U.S. 12,402 (1,740 ) (930 ) Deferred provision (benefit) 6,121 (142,045 ) 19,897 Total provision (benefit) $ 64,399 $ (150,732 ) $ 8,663 |
Income tax expense (benefit), income tax reconciliation | Differences between our provision for income taxes and the amount determined by applying the U.K. statutory rate to income before income taxes are set forth below (dollars in thousands): 2015 2014 2013 U.K. Statutory rate 20.25 % 21.50 % 23.25 % Tax at statutory rate $ 31,936 $ (57,965 ) $ 60,738 Increase (decrease) due to: Capitalized interest transactions (5,675 ) (20,145 ) (11,317 ) Tax audit settlements — 10,449 — Foreign rate differential (29,953 ) 38,216 (27,078 ) Deferred intercompany gain/loss (33,765 ) (86,635 ) (9,062 ) Change in valuation allowance 105,968 (3,570 ) 8,381 Prior period adjustments (6,913 ) 7,511 (9,837 ) Unrecognized tax benefits 9,715 (35,791 ) 17,544 Termination of local country activity (6,316 ) — — Foreign taxes of subsidiaries for which U.S. federal income taxes have been provided — — 9,155 Foreign tax credits/deductions (2,160 ) (4,925 ) (31,078 ) Other, net 1,562 2,123 1,217 Total provision (benefit) $ 64,399 $ (150,732 ) $ 8,663 |
Deferred tax assets and liabilities | Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in thousands): 2015 2014 Current Noncurrent Current Noncurrent Deferred tax assets: Accrued employee benefit plan costs $ 30,598 $ 107,264 $ 30,912 $ 118,096 U.S. net operating loss — 27,489 — 46,675 U.K. net operating loss — 2,808 — 2,708 Trinidad net operating loss — 7,659 — 13,034 Interest expense limitation carryforward — 42,129 — — Other NOLs and tax credit carryforwards — 33,059 819 23,634 Other 3,704 26,986 888 28,069 Total deferred tax assets 34,302 247,394 32,619 232,216 Less: valuation allowance (29,239 ) (99,068 ) — (22,339 ) Deferred tax assets, net of valuation allowance 5,063 148,326 32,619 209,877 Deferred tax liabilities: Property, plant and equipment — 296,610 — 369,095 Other 5,063 47,511 5,134 51,764 Total deferred tax liabilities 5,063 344,121 5,134 420,859 Net deferred tax asset (liability) $ — $ (195,795 ) $ 27,485 $ (210,982 ) |
Changes in gross unrecognized tax benefits | The following table sets forth the changes in the Company’s gross unrecognized tax benefits for the years ended December 31 (in thousands): 2015 2014 2013 Gross unrecognized tax benefits - beginning of year $ 54,660 $ 81,920 $ 58,900 Gross increases - tax positions in prior period 4,425 19,928 11,021 Gross decreases - tax positions in prior period (3,700 ) (10,649 ) (4,114 ) Gross increases - current period tax positions 9,669 9,458 16,674 Settlements — (37,809 ) — Lapse of statute of limitations — (8,188 ) (561 ) Gross unrecognized tax benefit - end of year $ 65,054 $ 54,660 $ 81,920 |
Schedule of income before income tax | The components of income (loss) from continuing operations before income taxes were as follows (in thousands): 2015 2014 2013 U.S. $ (174,122 ) $ (198,300 ) $ 163,400 Non-U.S. 331,832 (71,300 ) 97,800 |
SEGMENT AND GEOGRAPHIC AREA I35
SEGMENT AND GEOGRAPHIC AREA INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | "Other operating items" includes, to the extent applicable, non-cash asset impairment charges, gains and losses on equipment sales, and gains and losses on litigation settlements (in thousands): Deepwater Jack-ups Segment total Unallocated costs and other Consolidated 2015: Revenues from external customers $ 747,792 $ 1,389,226 $ 2,137,018 $ — $ 2,137,018 Operating expenses: Direct operating costs (excluding items below) 276,542 716,545 993,087 — 993,087 Depreciation and amortization 94,613 283,905 378,518 12,900 391,418 Selling, general and administrative — — — 115,779 115,779 Other operating items — 328,818 328,818 826 329,644 Income (loss) from operations $ 376,637 $ 59,958 $ 436,595 $ (129,505 ) $ 307,090 Capital expenditures $ 555,127 $ 128,764 $ 683,891 $ 38,998 $ 722,889 Total assets (at end of year) $ 3,100,052 $ 4,437,914 $ 7,537,966 $ 809,301 $ 8,347,267 2014: Revenues from external customers $ 179,834 $ 1,644,549 $ 1,824,383 $ — $ 1,824,383 Operating expenses: Direct operating costs (excluding items below) 87,778 903,562 991,340 — 991,340 Depreciation and amortization 24,410 283,542 307,952 14,689 322,641 Selling, general and administrative — — — 125,834 125,834 Other operating items — 544,775 544,775 6,522 551,297 Income (loss) from operations $ 67,646 $ (87,330 ) $ (19,684 ) $ (147,045 ) $ (166,729 ) Capital expenditures $ 1,577,257 $ 345,260 $ 1,922,517 $ 35,710 $ 1,958,227 Total assets (at end of year) $ 2,665,089 $ 5,162,977 $ 7,828,066 $ 564,284 $ 8,392,350 2013: Revenues from external customers $ — $ 1,579,284 $ 1,579,284 $ — $ 1,579,284 Operating expenses: Direct operating costs (excluding items below) — 860,893 860,893 — 860,893 Depreciation and amortization — 261,283 261,283 9,725 271,008 Selling, general and administrative — — — 131,373 131,373 Other operating items — (14,624 ) (14,624 ) (1,042 ) (15,666 ) Income (loss) from operations $ — $ 471,732 $ 471,732 $ (140,056 ) $ 331,676 Capital expenditures $ 241,997 $ 323,862 $ 565,859 $ 41,452 $ 607,311 |
Revenues and long-lived assets by geographic area | Revenues by geographic area are set forth below (in thousands): 2015 2014 2013 United States $ 704,638 $ 283,835 $ 240,820 Saudi Arabia 408,655 443,873 412,799 Norway 403,636 213,393 168,931 United Kingdom 163,037 288,248 327,217 Trinidad 141,749 94,722 101,262 Angola 96,429 80,499 — Malaysia 73,733 93,962 127,216 Qatar 54,029 53,522 21,938 Tunisia 36,642 18,590 — Spain (Canary Islands) 27,458 36,956 — Indonesia 27,012 125,851 90,027 Morocco — 33,027 — Egypt — 32,426 89,074 Namibia — 25,479 — Consolidated revenues $ 2,137,018 $ 1,824,383 $ 1,579,284 Long-lived assets by geographic area at December 31 are set forth below (in thousands): 2015 2014 United States $ 3,522,701 $ 1,374,420 Norway 1,330,009 1,394,994 Saudi Arabia 896,754 932,714 United Kingdom 827,533 842,666 Trinidad 431,223 238,697 Malaysia 365,921 383,308 Qatar 31,657 46,156 Angola 34 33 Rigs under construction — 1,023,647 Spain (Canary Islands) — 759,275 Indonesia — 221,512 Tunisia — 214,790 Consolidated long-lived assets $ 7,405,832 $ 7,432,212 |
SUPPLEMENTAL CASH FLOW INFORM36
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Noncash investing and financing activities | on-cash investing and financing activities and other supplemental cash flow information follows (in thousands): 2015 2014 2013 Accrued but unpaid additions to property and equipment at December 31 $ 32,246 $ 48,646 $ 49,220 Cash interest payments in excess of interest capitalized 143,829 78,744 65,824 Income tax payments (refunds), net 37,455 8,549 (5,929 ) |
GUARANTEES OF REGISTERED SECU37
GUARANTEES OF REGISTERED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Prior Period Adjustments | |
Guarantor Financial Statements | Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Receivables - trade and other 110 1,369 409,040 — 410,519 Other current assets 394 19,230 6,904 — 26,528 Total current assets 17,801 30,105 873,369 — 921,275 Property, plant and equipment - gross — 592,809 8,475,284 — 9,068,093 Less accumulated depreciation and amortization — 242,665 1,419,596 — 1,662,261 Property, plant and equipment - net — 350,144 7,055,688 — 7,405,832 Investments in subsidiaries 4,763,306 6,028,242 — (10,791,548 ) — Due from affiliates 629 1,218,233 55,751 (1,274,613 ) — Other assets — 4,999 15,161 — 20,160 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 CURRENT LIABILITIES: Accounts payable - trade $ 960 $ 19,111 $ 89,503 $ — $ 109,574 Deferred revenues — 6 33,056 — 33,062 Accrued liabilities 778 119,388 65,869 — 186,035 Total current liabilities 1,738 138,505 188,428 — 328,671 Long-term debt — 2,692,419 — — 2,692,419 Due to affiliates 2,880 55,750 1,215,983 (1,274,613 ) — Other liabilities 4,659 304,709 48,555 — 357,923 Deferred income taxes - net — 522,927 150,822 (477,954 ) 195,795 Shareholders' equity 4,772,459 3,917,413 6,396,181 (10,313,594 ) 4,772,459 $ 4,781,736 $ 7,631,723 $ 7,999,969 $ (12,066,161 ) $ 8,347,267 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2014 (in thousands) Rowan Companies 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 45,829 8,328 — 54,581 Total current assets 46,359 98,726 793,854 — 938,939 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 — 1,418 19,781 — 21,199 $ 4,707,819 $ 7,715,283 $ 7,978,944 $ (12,009,696 ) $ 8,392,350 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 — 2,788,482 — — 2,788,482 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 $ 7,715,283 $ 7,978,944 $ (12,009,696 ) $ 8,392,350 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 60,059 $ 2,133,365 $ (56,406 ) $ 2,137,018 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 14,991 1,028,449 (50,353 ) 993,087 Depreciation and amortization — 19,535 370,415 1,468 391,418 Selling, general and administrative 26,181 5,378 91,741 (7,521 ) 115,779 Loss (gain) on disposals of property and equipment — 930 (8,633 ) — (7,703 ) Material charges and other operating expenses — — 337,347 — 337,347 Total costs and expenses 26,181 40,834 1,819,319 (56,406 ) 1,829,928 INCOME (LOSS) FROM OPERATIONS (26,181 ) 19,225 314,046 — 307,090 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (145,317 ) (22,817 ) 22,817 (145,317 ) Interest income 823 22,064 1,059 (22,817 ) 1,129 Loss on debt extinguishment — (1,482 ) — — (1,482 ) Other - net 22,310 (22,026 ) (3,994 ) — (3,710 ) Total other income (expense) - net 23,133 (146,761 ) (25,752 ) — (149,380 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,048 ) (127,536 ) 288,294 — 157,710 Provision (benefit) for income taxes — 30,515 48,600 (14,716 ) 64,399 NET INCOME (LOSS) FROM CONTINUING OPERATIONS (3,048 ) (158,051 ) 239,694 14,716 93,311 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX 96,359 (133,997 ) — 37,638 — NET INCOME (LOSS) $ 93,311 $ (292,048 ) $ 239,694 $ 52,354 $ 93,311 Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 63,811 $ 1,824,623 $ (64,051 ) $ 1,824,383 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 3,699 1,048,235 (60,594 ) 991,340 Depreciation and amortization — 13,767 307,693 1,181 322,641 Selling, general and administrative 26,337 17 104,118 (4,638 ) 125,834 Loss (gain) on disposals of property and equipment — (4,986 ) 3,208 — (1,778 ) Litigation settlement — — (20,875 ) — (20,875 ) Material charges and other operating expenses — 12,191 561,759 — 573,950 Total costs and expenses 26,337 24,688 2,004,138 (64,051 ) 1,991,112 INCOME (LOSS) FROM OPERATIONS (26,337 ) 39,123 (179,515 ) — (166,729 ) OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (103,934 ) (3,102 ) 3,102 (103,934 ) Interest income 340 3,558 1,065 (3,102 ) 1,861 Other - net 22,402 (22,291 ) (916 ) — (805 ) Total other income (expense) - net 22,742 (122,667 ) (2,953 ) — (102,878 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,595 ) (83,544 ) (182,468 ) — (269,607 ) Provision (benefit) for income taxes — (116,790 ) (36,255 ) 2,313 (150,732 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS (3,595 ) 33,246 (146,213 ) (2,313 ) (118,875 ) DISCONTINUED OPERATIONS, NET OF TAX — 4,023 — — 4,023 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX (111,257 ) (142,289 ) — 253,546 — NET INCOME (LOSS) $ (114,852 ) $ (105,020 ) $ (146,213 ) $ 251,233 $ (114,852 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Income Statements Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUES $ — $ 114,673 $ 1,573,111 $ (108,500 ) $ 1,579,284 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 11,421 957,972 (108,500 ) 860,893 Depreciation and amortization — 39,658 231,350 — 271,008 Selling, general and administrative 28,456 3,119 99,798 — 131,373 Loss (gain) on disposals of property and equipment — 130 (20,249 ) — (20,119 ) Material charges and other operating expenses — — 4,453 — 4,453 Total costs and expenses 28,456 54,328 1,273,324 (108,500 ) 1,247,608 INCOME (LOSS) FROM OPERATIONS (28,456 ) 60,345 299,787 — 331,676 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized — (69,794 ) (213 ) 213 (69,794 ) Interest income 210 528 1,053 (213 ) 1,578 Other - net 9,997 (9,915 ) (2,303 ) — (2,221 ) Total other income (expense) - net 10,207 (79,181 ) (1,463 ) — (70,437 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (18,249 ) (18,836 ) 298,324 — 261,239 Provision (benefit) for income taxes — (21,757 ) 54,865 (24,445 ) 8,663 NET INCOME (LOSS) FROM CONTINUING OPERATIONS (18,249 ) 2,921 243,459 24,445 252,576 EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX 270,825 114,805 — (385,630 ) — NET INCOME $ 252,576 $ 117,726 $ 243,459 $ (361,185 ) $ 252,576 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 93,311 $ (292,048 ) $ 239,694 $ 52,354 $ 93,311 OTHER COMPREHENSIVE INCOME (LOSS): Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes 6,964 6,964 — (6,964 ) 6,964 Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 13,769 13,769 — (13,769 ) 13,769 — 20,733 20,733 — (20,733 ) 20,733 COMPREHENSIVE INCOME (LOSS) $ 114,044 $ (271,315 ) $ 239,694 $ 31,621 $ 114,044 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET LOSS $ (114,852 ) $ (105,020 ) $ (146,213 ) $ 251,233 $ (114,852 ) OTHER COMPREHENSIVE INCOME (LOSS): Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes (87,293 ) (87,293 ) — 87,293 (87,293 ) Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 9,824 9,824 — (9,824 ) 9,824 (77,469 ) (77,469 ) — 77,469 (77,469 ) COMPREHENSIVE LOSS $ (192,321 ) $ (182,489 ) $ (146,213 ) $ 328,702 $ (192,321 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME $ 252,576 $ 117,726 $ 243,459 $ (361,185 ) $ 252,576 OTHER COMPREHENSIVE INCOME: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes 63,315 63,315 — (63,315 ) 63,315 Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes 15,322 15,322 — (15,322 ) 15,322 78,637 78,637 — (78,637 ) 78,637 COMPREHENSIVE INCOME $ 331,213 $ 196,363 $ 243,459 $ (439,822 ) $ 331,213 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2015 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (7,544 ) $ 4,783 $ 1,047,132 $ (47,379 ) $ 996,992 INVESTING ACTIVITIES: Property, plant and equipment additions — (23,270 ) (699,619 ) — (722,889 ) Proceeds from disposals of property, plant and equipment — 2,852 16,521 — 19,373 Advances on subsidiary note receivable — (481,300 ) — 481,300 — Collections on subsidiary note receivable 36,593 503,490 — (540,083 ) — Investments in consolidated subsidiaries 250 (37,704 ) — 37,454 — Net cash provided by (used in) investing activities 36,843 (35,932 ) (683,098 ) (21,329 ) (703,516 ) FINANCING ACTIVITIES: Advances (to) from affiliates (7,399 ) 89,965 (80,945 ) (1,621 ) — Contributions from parent — — 37,454 (37,454 ) — Proceeds from borrowings — 220,000 481,300 (481,300 ) 220,000 Dividends paid (50,512 ) — (49,000 ) 49,000 (50,512 ) Repayments of borrowings — (317,890 ) (540,083 ) 540,083 (317,890 ) Net cash provided by (used in) financing activities (57,911 ) (7,925 ) (151,274 ) 68,708 (148,402 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (28,612 ) (39,074 ) 212,760 — 145,074 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 45,909 48,580 244,665 — 339,154 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 17,297 $ 9,506 $ 457,425 $ — $ 484,228 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2014 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 63,769 $ 82,504 $ 452,905 $ (176,219 ) $ 422,959 INVESTING ACTIVITIES: Property, plant and equipment additions — (21,079 ) (1,937,148 ) — (1,958,227 ) Proceeds from disposals of property, plant and equipment — 14,574 7,413 — 21,987 Investments in consolidated subsidiaries — (105,261 ) — 105,261 — Net cash used in investing activities — (111,766 ) (1,929,735 ) 105,261 (1,936,240 ) FINANCING ACTIVITES: Advances (to) from affiliates (49,182 ) (731,835 ) 782,198 (1,181 ) — Contributions from parent — — 105,261 (105,261 ) — Proceeds from borrowings — 793,380 — — 793,380 Debt issue costs — (687 ) — — (687 ) Dividends paid (37,695 ) (75,000 ) (102,400 ) 177,400 (37,695 ) Excess tax benefits from share-based compensation — (132 ) — — (132 ) Proceeds from exercise of share options 4,725 — — — 4,725 Net cash provided by (used in) financing activities (82,152 ) (14,274 ) 785,059 70,958 759,591 DECREASE IN CASH AND CASH EQUIVALENTS (18,383 ) (43,536 ) (691,771 ) — (753,690 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 64,292 92,116 936,436 — 1,092,844 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 45,909 $ 48,580 $ 244,665 $ — $ 339,154 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2013 (in thousands) Rowan Companies plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (13,993 ) $ 160,703 $ 476,466 $ — $ 623,176 INVESTING ACTIVITIES: Property, plant and equipment additions — (49,594 ) (557,717 ) — (607,311 ) Proceeds from disposals of property, plant and equipment — 2,432 42,118 — 44,550 Investments in consolidated subsidiaries (100 ) (162,379 ) — 162,479 — Net cash used in investing activities (100 ) (209,541 ) (515,599 ) 162,479 (562,761 ) FINANCING ACTIVITIES: Advances (to) from affiliates 15,026 (90,821 ) 75,795 — — Contributions from parent — — 162,479 (162,479 ) — Proceeds from exercise of share options 2,911 — — — 2,911 Excess tax benefits from share-based compensation — 3,690 — — 3,690 Other 1,820 — — — 1,820 Net cash provided by (used in) financing activities 19,757 (87,131 ) 238,274 (162,479 ) 8,421 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,664 (135,969 ) 199,141 — 68,836 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 58,628 228,085 737,295 — 1,024,008 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 64,292 $ 92,116 $ 936,436 $ — $ 1,092,844 |
NATURE OF OPERATIONS AND BASI38
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) | 12 Months Ended |
Dec. 31, 2015drilling_unit | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of mobile offshore drilling units | 31 |
Number of fleet of self-elevating mobile offshore jack-up drilling units | 27 |
Number of ultra-deepwater drillships | 4 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue and Expense Recognition, Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Revenues received but unearned | $ 50,800 | $ 60,200 |
Deferred drilling costs | 4,400 | 5,400 |
Receivables - Trade and Other | ||
Trade | 395,694 | 524,712 |
Income tax | 4,463 | 6,315 |
Other | 10,362 | 14,177 |
Total receivables - trade and other | $ 410,519 | $ 545,204 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Depreciation and Impairments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)drilling_unit | Dec. 31, 2014USD ($)drilling_unit | Dec. 31, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Interest incurred and capitalized during construction | $ 16,200 | $ 57,600 | $ 48,700 |
Repairs and maintenance expense, continuing operations | 129,000 | 161,000 | 152,000 |
Property value | 7,405,832 | 7,432,212 | |
Asset impairment charges | $ 329,781 | $ 573,950 | 4,453 |
Jack-up Rigs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of drilling units impaired | drilling_unit | 10 | 12 | |
Property value | $ 457,800 | $ 840,800 | |
Asset impairment charges | $ 329,800 | 565,700 | |
Jack-up drilling rigs: Hulls [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Jack-up drilling rigs: Legs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Jack-up drilling rigs: Quarters [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Life (in years) | 25 years | ||
Drillships: Hulls [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Life (in years) | 35 years | ||
Drill pipe and tubular equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Life (in years) | 4 years | ||
Aircraft [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property value | 12,700 | ||
Asset impairment charges | $ 8,300 | ||
Dock and storage facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property value | 23,500 | ||
Asset impairment charges | $ 4,500 | ||
Minimum [Member] | Jack-up Rigs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Minimum [Member] | Jack-up drilling rigs: Hulls [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 25 years | ||
Minimum [Member] | Jack-up drilling rigs: Legs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 25 years | ||
Minimum [Member] | Jack-up drilling rigs: Drilling equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 0.00% | ||
Life (in years) | 5 years | ||
Minimum [Member] | Drillships: Drilling equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 0.00% | ||
Life (in years) | 5 years | ||
Minimum [Member] | Other property and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 3 years | ||
Maximum [Member] | Jack-up Rigs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 20.00% | ||
Maximum [Member] | Jack-up drilling rigs: Hulls [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 35 years | ||
Maximum [Member] | Jack-up drilling rigs: Legs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 30 years | ||
Maximum [Member] | Jack-up drilling rigs: Drilling equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Life (in years) | 25 years | ||
Maximum [Member] | Drillships: Drilling equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Salvage Value | 10.00% | ||
Life (in years) | 25 years | ||
Maximum [Member] | Other property and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Life (in years) | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period from grant date to retirement eligibility, threshold basis for amortization period of share based compensation cost | 6 months |
Restricted share units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 3 years |
Restricted share units (RSUs) [Member] | Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards vesting period | 1 year |
Compensation expense recognition period | 1 year |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 36 months |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 6 months |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Currency Transactions [Line Items] | |||
Other assets | $ 20,160 | $ 21,199 | |
Foreign currency transaction gains (losses) | 3,900 | 50 | $ (2,300) |
Egypt, Pounds | |||
Foreign Currency Transactions [Line Items] | |||
Other assets | $ 13,500 | $ 16,300 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Average common shares outstanding (in shares) | 124,508 | 124,067 | 123,517 |
Average shares for diluted computations (in shares) | 125,203 | 124,067 | 124,468 |
Nonvested restricted shares and restricted share units | |||
Class of Stock [Line Items] | |||
Dilutive securities (in shares) | 585 | 0 | 542 |
Share options and appreciation rights | |||
Class of Stock [Line Items] | |||
Dilutive securities (in shares) | 110 | 0 | 409 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 2,341 | 2,853 | 1,065 |
Share options and appreciation rights | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 1,249 | 2,234 | 1,065 |
Nonvested restricted shares and restricted share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 1,092 | 619 | 0 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - New Accounting Pronouncement, Early Adoption, Effect - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Unamortized debt issue costs, adjustment | $ (16.4) | $ (18.8) |
Long-term Debt | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Unamortized debt issue costs, adjustment | $ 16.4 | $ 18.8 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - Discontinued Operations, Disposed of by Sale [Member] - Rowan Land Rig [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash received from sale | $ 6 |
Gain on sale of discontinued operations, net of tax | 4 |
Income tax benefit from discontinued operations | $ 2.1 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities, Current [Abstract] | ||
Pension and other postretirement benefits | $ 31,389 | $ 26,219 |
Compensation and related employee costs | 73,628 | 88,186 |
Interest | 44,338 | 47,414 |
Income taxes | 23,927 | 13,265 |
Other | 12,753 | 19,175 |
Total accrued liabilities | $ 186,035 | $ 194,259 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Jan. 15, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2016 | May. 31, 2015 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 2,692,419,000 | $ 2,788,482,000 | ||||
Borrowing capacity under the revolving credit facility | $ 1,000,000,000 | $ 1,500,000,000 | ||||
Non-cash loss on debt extinguishment | $ 1,482,000 | 0 | $ 0 | |||
Minimum percentage of shareholders equity | 60.00% | |||||
Consolidated debt to total capitalization ratio | 36.00% | |||||
Subsequent Event [Member] | Through January 23, 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity under the revolving credit facility | $ 1,500,000,000 | |||||
Subsequent Event [Member] | January 24, 2019 through January 23, 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity under the revolving credit facility | 1,440,000,000 | |||||
Subsequent Event [Member] | January 24, 2020 through January 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity under the revolving credit facility | $ 1,290,000,000 | |||||
RCI [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Subsidiary ownership percentage by parent | 100.00% | |||||
Net proceeds from issuance of debt | $ 792,000,000 | |||||
RCI [Member] | 4.75% Senior Notes, due January 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 400,000,000 | |||||
Stated interest rate | 4.75% | |||||
Issue amount as percentage of principal | 99.898% | |||||
RCI [Member] | 5.85% Senior Notes, due January 2044 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 400,000,000 | |||||
Stated interest rate | 5.85% | |||||
Issue amount as percentage of principal | 99.972% | |||||
Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | 2,788,482,000 | |||||
Redemption amount as percentage of principal | 100.00% | |||||
Unsecured Debt [Member] | 5% Senior Notes, due September 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 365,494,000 | 398,009,000 | ||||
Effective interest rate | 5.10% | |||||
Aggregate principal amount | $ 366,600,000 | |||||
Stated interest rate | 5.00% | |||||
Unsecured Debt [Member] | 7.875 % Senior Notes, due August 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 432,870,000 | 496,150,000 | ||||
Effective interest rate | 8.00% | |||||
Aggregate principal amount | $ 435,500,000 | |||||
Stated interest rate | 7.875% | |||||
Unsecured Debt [Member] | 4.875% Senior Notes, due June 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 706,236,000 | 707,206,000 | ||||
Effective interest rate | 4.60% | |||||
Aggregate principal amount | $ 700,000,000 | |||||
Stated interest rate | 4.875% | |||||
Unsecured Debt [Member] | 4.75% Senior Notes, due January 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 397,069,000 | 396,704,000 | ||||
Effective interest rate | 4.80% | |||||
Aggregate principal amount | $ 400,000,000 | |||||
Unsecured Debt [Member] | 5.4% Senior Notes, due December 2042 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 394,720,000 | 394,524,000 | ||||
Effective interest rate | 5.50% | |||||
Aggregate principal amount | $ 400,000,000 | |||||
Stated interest rate | 5.40% | |||||
Unsecured Debt [Member] | 5.85% Senior Notes, due January 2044 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt | $ 396,030,000 | $ 395,889,000 | ||||
Effective interest rate | 5.90% | |||||
Aggregate principal amount | $ 400,000,000 | |||||
Unsecured Debt [Member] | 5% Notes due 2017 and 7.875% Notes due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Cash payment to retire long-term debt | 101,100,000 | |||||
Aggregate principal amount extinguished | 97,900,000 | |||||
Non-cash loss on debt extinguishment | $ 1,500,000 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)drilling_unit | Dec. 31, 2014USD ($)drilling_unit | Dec. 31, 2013USD ($) | |
Estimated fair value measurements | |||
Other assets | $ 13,500 | $ 16,300 | |
Asset impairment charges | 329,781 | 573,950 | $ 4,453 |
Property value | 7,405,832 | 7,432,212 | |
Long-term debt, carrying value | 2,692,419 | 2,788,482 | |
Long-term debt, fair value | 2,072,000 | 2,755,000 | |
Jack-up Rigs [Member] | |||
Estimated fair value measurements | |||
Asset impairment charges | $ 329,800 | $ 565,700 | |
Number of drilling units impaired | drilling_unit | 10 | 12 | |
Property value | $ 457,800 | $ 840,800 | |
Recurring [Member] | Carrying Value [Member] | |||
Estimated fair value measurements | |||
Assets - cash equivalents | 465,388 | 314,570 | |
Other assets | 13,508 | 16,304 | |
Recurring [Member] | Level 1 [Member] | |||
Estimated fair value measurements | |||
Assets - cash equivalents | 465,388 | 314,570 | |
Other assets | 13,508 | 16,304 | |
Recurring [Member] | Level 2 [Member] | |||
Estimated fair value measurements | |||
Assets - cash equivalents | 0 | 0 | |
Other assets | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | |||
Estimated fair value measurements | |||
Assets - cash equivalents | 0 | 0 | |
Other assets | 0 | 0 | |
Non-Recurring [Member] | |||
Estimated fair value measurements | |||
Property, plant and equipment, Total gains (losses) | (329,781) | (565,650) | |
Non-Recurring [Member] | Carrying Value [Member] | |||
Estimated fair value measurements | |||
Property and equipment, net | 128,018 | 275,148 | |
Non-Recurring [Member] | Level 1 [Member] | |||
Estimated fair value measurements | |||
Property and equipment, net | 0 | 0 | |
Non-Recurring [Member] | Level 2 [Member] | |||
Estimated fair value measurements | |||
Property and equipment, net | 0 | 0 | |
Non-Recurring [Member] | Level 3 [Member] | |||
Estimated fair value measurements | |||
Property and equipment, net | $ 128,018 | $ 275,148 |
FAIR VALUE MEASUREMENTS - Conce
FAIR VALUE MEASUREMENTS - Concentrations of Credit Risk (Details) - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentrations of Credit Risk [Abstract] | |||
Customer risk, number of customers | 3 | 1 | |
Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 24.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 29.00% | ||
Saudi Aramco [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 19.00% | ||
Saudi Aramco [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 34.00% | ||
ConocoPhillips [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 13.00% | ||
ConocoPhillips [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 12.00% | ||
Anadarko [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 10.00% | ||
Anadarko [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 9.00% | ||
One customer [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 26.00% | ||
Another customer [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | |||
Concentrations of Credit Risk [Abstract] | |||
Customer concentration, percentage | 11.00% |
COMMITMENTS AND CONTINGENT LI51
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense | $ 13,200 | $ 13,800 | $ 9,300 | |
Future minimum payments to be made under noncancelable operating leases [Abstract] | ||||
2,016 | 7,125 | |||
2,017 | 5,770 | |||
2,018 | 5,669 | |||
2,019 | 5,673 | |||
2,020 | 3,997 | |||
Later years | 12,040 | |||
Total | 40,274 | |||
Purchase obligations | 106,000 | |||
Letters of credit outstanding | $ 4,200 | |||
Number of years with settlement agreement | 3 years | |||
Number of years under examination | 4 years | |||
Tax settlement, amount | $ 36,000 |
SHARE-BASED COMPENSATION PLAN52
SHARE-BASED COMPENSATION PLANS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 33,627,000 | $ 34,547,000 | $ 33,931,000 | |||
Compensation expense | 1,700,000 | |||||
Minimum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Requisite service period | 6 months | |||||
Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Requisite service period | 36 months | |||||
Nonvested restricted shares and restricted share units | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 22,462,000 | 23,577,000 | 23,786,000 | |||
Share appreciation rights [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 1,147,000 | 3,724,000 | 6,412,000 | |||
Award vesting percentage | 33.33% | |||||
Awards vesting period | 3 years | |||||
Expiration period | 10 years | |||||
Total intrinsic value of options exercised | $ 900,000 | $ 500,000 | ||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at beginning of period (in dollars per share) | $ 13.91 | |||||
Nonvested at end of period (in dollars per share) | $ 13.91 | |||||
Weighted-average assumptions used to determine fair values of SARs | ||||||
Expected life in years | 6 years | |||||
Risk-free interest rate | 1.058% | |||||
Expected volatility | 41.11% | |||||
Weighted-average grant-date per-share fair value | $ 13.91 | $ 13.91 | ||||
Number of shares under SARs | ||||||
Outstanding at beginning of period (in shares) | 1,761,270 | |||||
Forfeited or expired (in shares) | (145,968) | |||||
Outstanding at end of period (in shares) | 1,615,302 | 1,761,270 | ||||
Exercisable at end of period (in shares) | 1,497,425 | |||||
Weighted-average exercise price | ||||||
Outstanding at beginning of period (in dollars per share) | $ 30.94 | |||||
Forfeited or expired (in dollars per share) | 34.10 | |||||
Outstanding at end of period (in dollars per share) | $ 30.66 | $ 30.94 | ||||
Exercisable at end of period (in dollars per share) | $ 30.37 | |||||
Outstanding at end of period, Weighted-average remaining contractual term (in years) | 4 years 3 months 12 days | |||||
Exercisable at end of period, Weighted-average remaining contractual term (in years) | 4 years 20 days | |||||
Outstanding at end of period, Aggregate intrinsic value | $ 0 | |||||
Exercisable at end of period, Aggregate intrinsic value | $ 0 | |||||
Share options [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 0 | $ 0 | $ 23,000 | |||
Expiration period | 10 years | |||||
Total intrinsic value of options exercised | $ 1,400,000 | 2,000,000 | ||||
Number of shares under SARs | ||||||
Outstanding at beginning of period (in shares) | 185,404,000 | |||||
Forfeited or expired (in shares) | (60,372,000) | |||||
Outstanding at end of period (in shares) | 125,032,000 | 185,404,000 | ||||
Exercisable at end of period (in shares) | 125,032,000 | |||||
Weighted-average exercise price | ||||||
Outstanding at beginning of period (in dollars per share) | $ 22.96 | |||||
Forfeited or expired (in dollars per share) | 26.97 | |||||
Outstanding at end of period (in dollars per share) | $ 21.02 | $ 22.96 | ||||
Exercisable at end of period (in dollars per share) | $ 21.02 | |||||
Outstanding at end of period, Weighted-average remaining contractual term (in years) | 2 years 4 months 25 days | |||||
Exercisable at end of period, Weighted-average remaining contractual term (in years) | 2 years 4 months 25 days | |||||
Outstanding at end of period, Aggregate intrinsic value | $ (164,000) | |||||
Exercisable at end of period, Aggregate intrinsic value | $ 164,000 | |||||
Share options [Member] | Minimum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Award vesting percentage | 25.00% | |||||
Requisite service period | 3 years | |||||
Share options [Member] | Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Award vesting percentage | 33.33% | |||||
Requisite service period | 4 years | |||||
Performance-based awards [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 10,018,000 | $ 7,246,000 | 3,710,000 | |||
Awards vesting period | 3 years | |||||
Fair value of shares vested | $ 2,700,000 | 0 | 0 | |||
Granted (in dollars per share) | $ 100 | |||||
Vesting percentage of performance units (in hundredths) | 25.00% | |||||
Weighted-average grant-date fair value per share | ||||||
Granted (in dollars per share) | $ 100 | |||||
Performance-based awards [Member] | Minimum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Expected to vest, weighted average exercise price (in dollars per share) | $ 0 | |||||
Performance-based awards [Member] | Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Expected to vest, weighted average exercise price (in dollars per share) | 200 | |||||
Restricted shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Award vesting percentage | 33.33% | |||||
Awards vesting period | 3 years | |||||
Fair value of shares vested | $ 4,100,000 | $ 10,900,000 | 16,200,000 | |||
Vested / Settled (in shares) | 206,180 | |||||
Number of Shares | ||||||
Nonvested at beginning of period (in shares) | 210,554 | |||||
Vested / Settled (in shares) | (206,180) | |||||
Forfeited (in shares) | (1,874) | |||||
Nonvested at end of period (in shares) | 2,500 | 210,554 | ||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at beginning of period (in dollars per share) | $ 35.13 | |||||
Vested / Settled (in dollars per share) | 35.14 | |||||
Forfeited (in dollars per share) | 35.47 | |||||
Nonvested at end of period (in dollars per share) | 33.88 | $ 35.13 | ||||
Weighted-average assumptions used to determine fair values of SARs | ||||||
Weighted-average grant-date per-share fair value | $ 35.13 | $ 35.13 | $ 33.88 | $ 35.13 | ||
Restricted share units (RSUs) [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Award vesting percentage | 33.33% | |||||
Fair value of shares vested | $ 8,900,000 | $ 8,500,000 | $ 500,000 | |||
Requisite service period | 3 years | |||||
Vested / Settled (in shares) | 440,083 | |||||
Fair value of long-term liabilities | $ 4,700,000 | $ 5,800,000 | ||||
Granted (in dollars per share) | $ 21.11 | |||||
Number of Shares | ||||||
Nonvested at beginning of period (in shares) | 1,132,153 | |||||
Granted (in shares) | 1,222,777 | |||||
Vested / Settled (in shares) | (440,083) | |||||
Forfeited (in shares) | (171,121) | |||||
Nonvested at end of period (in shares) | 1,743,726 | 1,132,153 | ||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at beginning of period (in dollars per share) | $ 33.05 | |||||
Granted (in dollars per share) | 21.11 | |||||
Vested / Settled (in dollars per share) | 33.06 | |||||
Forfeited (in dollars per share) | 25.42 | |||||
Nonvested at end of period (in dollars per share) | 25.42 | $ 33.05 | ||||
Weighted-average assumptions used to determine fair values of SARs | ||||||
Weighted-average grant-date per-share fair value | $ 33.05 | $ 33.05 | $ 25.42 | $ 33.05 | ||
Non-employee director restricted share units [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Vested / Settled (in shares) | 44,336 | 37,251 | 23,928 | |||
Fair value of shares of common stock issued in connection with settlement of vested RSUs | $ 900,000 | $ 1,200,000 | $ 800,000 | |||
Granted (in dollars per share) | $ 20.96 | |||||
Number of Shares | ||||||
Outstanding, beginning of period (in shares) | 267,438 | |||||
Granted (in shares) | 77,040 | |||||
Vested / Settled (in shares) | (44,336) | (37,251) | (23,928) | |||
Outstanding, end of period (in shares) | 300,142 | 267,438 | ||||
Vested at end of period (in shares) | 229,101 | |||||
Weighted-average grant-date fair value per share | ||||||
Outstanding, beginning of period (in dollars per share) | $ 32.04 | |||||
Granted (in dollars per share) | 20.96 | |||||
Vested / Settled (in dollars per share) | 32.85 | |||||
Outstanding, end of period (in dollars per share) | 29.51 | $ 32.04 | ||||
Vested at end of period (in dollars per share) | $ 32.11 | |||||
Performance units [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Compensation expense over a remaining weighted-average period | 3 years | |||||
Fair value of long-term liabilities | $ 11,400,000 | $ 11,600,000 | ||||
Aggregate grant date fair value, net of estimated forfeitures | $ 9,000,000 | |||||
Fair value of short-term liabilities | $ 7,600,000 | |||||
Cash paid for units vested | $ 2,700,000 | |||||
Rowan Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 7,500,000 | |||||
Number of shares available for future grant (in shares) | 3,593,768 | |||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 34,500,000 | |||||
Compensation expense over a remaining weighted-average period | 1 year 6 months |
PENSION AND OTHER POSTRETIREM53
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Projected benefit obligations: | |||
Balance, January 1 | $ 881,531 | $ 746,712 | |
Interest cost | 34,781 | 35,705 | |
Service cost | 19,638 | 15,640 | |
Actuarial (gain) loss | (39,785) | 120,809 | |
Plan amendments | (12,088) | 259 | |
Exchange rate changes | (1,027) | (1,215) | |
Benefits paid | (56,331) | (36,379) | |
Balance, December 31 | 826,719 | 881,531 | $ 746,712 |
Plan assets: | |||
Fair value, January 1 | 591,960 | 542,449 | |
Actual return | (74) | 27,596 | |
Employer contributions | 11,339 | 54,834 | |
Exchange rate changes | (558) | (665) | |
Benefits paid | (51,923) | (32,254) | |
Fair value, December 31 | 550,744 | 591,960 | 542,449 |
Net benefit liabilities | (275,975) | (289,571) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (31,389) | (26,219) | |
Other liabilities (long-term) | (244,586) | (263,352) | |
Net benefit liabilities | (275,975) | (289,571) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | 30,756 | 48,726 | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | (335,206) | (358,809) | |
Prior service credit | 28,475 | 20,512 | |
Total accumulated other comprehensive loss | (306,731) | (338,297) | |
Net benefit liabilities | (275,975) | (289,571) | |
Weighted-average assumptions: | |||
Accumulated benefit obligation | 755,050 | 801,749 | |
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | |||
Actuarial (loss) gain | (20,532) | ||
Prior service credit | 5,378 | ||
Total amortization | (15,154) | ||
Pension benefits [Member] | |||
Projected benefit obligations: | |||
Balance, January 1 | 807,953 | 679,880 | |
Interest cost | 31,911 | 32,680 | 29,984 |
Service cost | 18,304 | 14,573 | 12,309 |
Actuarial (gain) loss | (40,265) | 114,030 | |
Plan amendments | (4,900) | 259 | |
Exchange rate changes | (1,027) | (1,215) | |
Benefits paid | (51,923) | (32,254) | |
Balance, December 31 | 760,053 | 807,953 | 679,880 |
Plan assets: | |||
Fair value, January 1 | 591,960 | 542,449 | |
Actual return | (74) | 27,596 | |
Employer contributions | 11,339 | 54,834 | |
Exchange rate changes | (558) | (665) | |
Benefits paid | (51,923) | (32,254) | |
Fair value, December 31 | 550,744 | 591,960 | $ 542,449 |
Net benefit liabilities | (209,309) | (215,993) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (22,249) | (21,839) | |
Other liabilities (long-term) | (187,060) | (194,154) | |
Net benefit liabilities | (209,309) | (215,993) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | 106,074 | 124,248 | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | (336,670) | (360,753) | |
Prior service credit | 21,287 | 20,512 | |
Total accumulated other comprehensive loss | (315,383) | (340,241) | |
Net benefit liabilities | $ (209,309) | $ (215,993) | |
Weighted-average assumptions: | |||
Rate of compensation increase | 4.54% | 4.12% | |
Rate of compensation increase | 4.15% | 4.15% | 4.15% |
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | |||
Actuarial (loss) gain | $ (20,532) | ||
Prior service credit | 4,992 | ||
Total amortization | (15,540) | ||
Expected payments, retiree medical plan | 98,110 | ||
Other benefits [Member] | |||
Projected benefit obligations: | |||
Balance, January 1 | 73,578 | $ 66,832 | |
Interest cost | 2,870 | 3,025 | $ 3,006 |
Service cost | 1,334 | 1,067 | 1,445 |
Actuarial (gain) loss | 480 | 6,779 | |
Plan amendments | (7,188) | 0 | |
Exchange rate changes | 0 | 0 | |
Benefits paid | (4,408) | (4,125) | |
Balance, December 31 | 66,666 | 73,578 | 66,832 |
Plan assets: | |||
Fair value, January 1 | 0 | 0 | |
Actual return | 0 | 0 | |
Employer contributions | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value, December 31 | 0 | 0 | $ 0 |
Net benefit liabilities | (66,666) | (73,578) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (9,140) | (4,380) | |
Other liabilities (long-term) | (57,526) | (69,198) | |
Net benefit liabilities | (66,666) | (73,578) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | (75,318) | (75,522) | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | 1,464 | 1,944 | |
Prior service credit | 7,188 | 0 | |
Total accumulated other comprehensive loss | 8,652 | 1,944 | |
Net benefit liabilities | $ (66,666) | $ (73,578) | |
Weighted-average assumptions: | |||
Rate of compensation increase | 4.18% | 3.95% | |
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | |||
Actuarial (loss) gain | $ 0 | ||
Prior service credit | 386 | ||
Total amortization | 386 | ||
Expected payments, retiree medical plan | 9,470 | ||
Retiree Medical Plan [Member] | |||
Projected benefit obligations: | |||
Plan amendments | 7,200 | ||
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | |||
Expected payments, retiree medical plan | $ 4,400 |
PENSION AND OTHER POSTRETIREM54
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, Additional Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost | $ 19,638 | $ 15,640 | |
Interest cost | $ 34,781 | 35,705 | |
Assumed health care cost trend rates for next fiscal year | 6.70% | ||
Ultimate health care cost trend rates | 4.50% | ||
Effect of one-percentage-point change in assumed health care cost trend rates [Abstract] | |||
Effect of one-percentage-point increase on total service and interest cost components for the year | $ 318 | ||
Effect of one-percentage-point decrease on total service and interest cost components for the year | (265) | ||
Effect of one-percentage-point increase on postretirement benefit obligation at year-end | 1,695 | ||
Effect of one-percentage-point decrease on postretirement benefit obligation at year-end | $ (1,597) | ||
Target rate of return of pension plan investments above inflation rate (in hundredths) | 3.00% | ||
Pension benefits [Member] | |||
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost | $ 18,304 | 14,573 | $ 12,309 |
Interest cost | 31,911 | 32,680 | 29,984 |
Expected return on plan assets | (41,598) | (41,592) | (38,305) |
Recognized actuarial loss | 25,674 | 19,861 | 28,454 |
Amortization of prior service cost | (4,519) | (4,507) | (4,736) |
Net periodic pension cost | $ 29,772 | $ 21,015 | $ 27,706 |
Discount rate | 3.97% | 4.83% | 4.16% |
Expected return on plan assets | 7.45% | 8.00% | 8.00% |
Rate of compensation increase | 4.15% | 4.15% | 4.15% |
Other benefits [Member] | |||
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost | $ 1,334 | $ 1,067 | $ 1,445 |
Interest cost | 2,870 | 3,025 | 3,006 |
Recognized actuarial loss | 0 | (237) | 0 |
Amortization of prior service cost | 0 | (32) | (147) |
Net periodic pension cost | $ 4,204 | $ 3,823 | $ 4,304 |
Discount rate | 3.95% | 4.74% | 3.89% |
PENSION AND OTHER POSTRETIREM55
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, Additional Disclosures 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 550,744 | $ 591,960 | $ 542,449 |
Target allocation percentage of plan assets by asset category [Abstract] | |||
Equity securities, range minimum (in hundredths) | 53.00% | 53.00% | |
Equity securities, range maximum (in hundredths) | 69.00% | 69.00% | |
U.S. large cap, range minimum (in hundredths) | 22.00% | 22.00% | |
U.S. large cap, range maximum (in hundredths) | 28.00% | 28.00% | |
U.S. small cap, range minimum (in hundredths) | 4.00% | 4.00% | |
U.S. small cap, range maximum (in hundredths) | 10.00% | 10.00% | |
International all cap, range minimum (in hundredths) | 21.00% | 21.00% | |
International all cap, range maximum (in hundredths) | 29.00% | 29.00% | |
International small cap, range minimum (in hundredths) | 2.00% | 2.00% | |
International small cap, range minimum (in hundredths) | 8.00% | 8.00% | |
Real estate, range minimum (in hundredths) | 0.00% | 0.00% | |
Real estate, range maximum (in hundredths) | 13.00% | 13.00% | |
Fixed income, range minimum (in hundredths) | 25.00% | 25.00% | |
Fixed income, range maximum (in hundredths) | 35.00% | 35.00% | |
Cash and equivalents, range minimum (in hundredths) | 0.00% | 0.00% | |
Cash and equivalents, range maximum (in hundredths) | 10.00% | 10.00% | |
Aggregate fixed income, range minimum (in hundredths) | 9.00% | 9.00% | |
Aggregate fixed income, range maximum (in hundredths) | 19.00% | 19.00% | |
Core plus fixed income, range minimum (in hundredths) | 9.00% | 9.00% | |
Core plus fixed income, range maximum (in hundredths) | 19.00% | 19.00% | |
Estimated future annual payments for pension and other postretirement benefits [Abstract] | |||
Contributions made to defined contribution plans classified as continuing operations | $ 20,000 | $ 19,000 | 14,300 |
Pension benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 550,744 | $ 591,960 | 542,449 |
Target allocation percentage of plan assets by asset category [Abstract] | |||
Expected return on plan assets, weighted average | 7.30% | 7.45% | |
Estimated future employer contributions in next fiscal year | $ 22,000 | ||
Estimated future annual payments for pension and other postretirement benefits [Abstract] | |||
2,016 | 98,110 | ||
2,017 | 41,980 | ||
2,018 | 42,920 | ||
2,019 | 44,450 | ||
2,020 | 45,520 | ||
2021 though 2025 | 238,030 | ||
Other benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | $ 0 | $ 0 |
Target allocation percentage of plan assets by asset category [Abstract] | |||
Estimated future employer contributions in next fiscal year | 9,000 | ||
Estimated future annual payments for pension and other postretirement benefits [Abstract] | |||
2,016 | 9,470 | ||
2,017 | 5,310 | ||
2,018 | 5,620 | ||
2,019 | 5,960 | ||
2,020 | 6,020 | ||
2021 though 2025 | 25,320 | ||
U.S. large cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,711 | 159,541 | |
U.S. small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36,409 | 38,106 | |
International all cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 128,427 | 135,947 | |
International small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33,066 | 29,736 | |
Real estate equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49,899 | 45,758 | |
Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,863 | 8,416 | |
Aggregate fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 75,910 | 85,412 | |
Core plus fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76,136 | 86,325 | |
Group annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,323 | 2,719 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76,137 | 86,326 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. large cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | International all cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | International small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | Real estate equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | Aggregate fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | Core plus fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76,136 | 86,325 | |
Quoted prices in active markets for identical assets (Level 1) [Member] | Group annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant observable inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 474,607 | 505,634 | |
Significant observable inputs (Level 2) [Member] | U.S. large cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,711 | 159,541 | |
Significant observable inputs (Level 2) [Member] | U.S. small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36,409 | 38,106 | |
Significant observable inputs (Level 2) [Member] | International all cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 128,427 | 135,947 | |
Significant observable inputs (Level 2) [Member] | International small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33,066 | 29,736 | |
Significant observable inputs (Level 2) [Member] | Real estate equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49,899 | 45,758 | |
Significant observable inputs (Level 2) [Member] | Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,862 | 8,415 | |
Significant observable inputs (Level 2) [Member] | Aggregate fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 75,910 | 85,412 | |
Significant observable inputs (Level 2) [Member] | Core plus fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant observable inputs (Level 2) [Member] | Group annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,323 | 2,719 | |
Significant unobservable inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | U.S. large cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | U.S. small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | International all cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | International small cap [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | Real estate equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | Cash and equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | Aggregate fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | Core plus fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant unobservable inputs (Level 3) [Member] | Group annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 23, 2015 | Aug. 25, 2015 | May. 26, 2015 | Mar. 03, 2015 | Nov. 25, 2014 | Aug. 26, 2014 | May. 20, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||||||||||
Income tax benefit | $ 10,832 | $ (41,683) | $ 42,342 | |||||||
Total reclassifications for the period, net of income taxes | $ (20,733) | $ 77,469 | (78,637) | |||||||
Approved quarterly cash dividends (in dollar per share) | $ 0.10 | $ 0.10 | ||||||||
Dividends paid (in dollar per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||||||||||
Amortization of net loss | $ (25,674) | $ (19,624) | (28,454) | |||||||
Amortization of prior service credit | 4,519 | 4,539 | 4,882 | |||||||
Total before income taxes | (21,155) | (15,085) | (23,572) | |||||||
Income tax benefit | 7,386 | 5,261 | 8,250 | |||||||
Total reclassifications for the period, net of income taxes | $ (13,769) | $ (9,824) | $ (15,322) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2021 | Mar. 31, 2018 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||||||
Statutory income tax rate, UK | 24.00% | 21.00% | 23.00% | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Unrecognized tax benefits, net | $ 62 | $ 48 | $ 75 | |||||
Unrecognized tax benefits that would impact effective tax rate | 62 | |||||||
Accrued interest on income taxes | 7.9 | 5.5 | 2.4 | |||||
Accrued penalties on income taxes | 2.8 | $ 2.6 | $ 1.7 | |||||
Number of years with settlement agreement | 3 years | |||||||
Number of years under examination | 4 years | |||||||
Tax settlement, amount | $ 36 | |||||||
U.S. [Member] | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Additional deferred tax valuation allowance | $ 62 | |||||||
Net operating loss carryforwards, expiration dates | Dec. 31, 2032 | |||||||
Valuation allowance | $ 42 | |||||||
U.S. [Member] | Expiring between 2035 and 2041 [Member] | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Net operating loss carryforwards | $ 29 | |||||||
U.K. [Member] | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Effective income tax rate | 20.25% | |||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Operating loss carryforwards subject to valuation allowance | $ 16 | |||||||
Non expiring NOLs | 16 | |||||||
Trinidad [Member] | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Operating loss carryforwards subject to valuation allowance | 18 | |||||||
Non expiring NOLs | 31 | |||||||
Foreign [Member] | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||||||
Net operating loss carryforwards | 49 | |||||||
Operating loss carryforwards subject to valuation allowance | 36 | |||||||
Non expiring NOLs | 6 | |||||||
Non expiring NOLs subject to a valuation allowance | 6 | |||||||
Tax credit carryforward | 29 | |||||||
Valuation allowance | 128 | |||||||
Unremitted earnings of Non-U.S. subsidiaries | $ 336.8 | |||||||
Forecast [Member] | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Statutory income tax rate, UK | 18.00% | 19.00% | 20.00% |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Income Taxes, Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
U.S. | $ 7,422 | $ (62,332) | $ (38,025) |
Non - U.S. | 50,823 | 53,494 | 31,932 |
State | 33 | 151 | (5,141) |
Current expense (benefit) | 58,278 | (8,687) | (11,234) |
Deferred: | |||
U.S. | (6,281) | (140,305) | 20,827 |
Non - U.S. | 12,402 | (1,740) | (930) |
Deferred provision (benefit) | 6,121 | (142,045) | 19,897 |
Total provision (benefit) | $ 64,399 | $ (150,732) | $ 8,663 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax expense (benefit), income tax reconciliation [Abstract] | |||
U.K. Statutory rate | 20.25% | 21.50% | 23.25% |
Tax at statutory rate | $ 31,936 | $ (57,965) | $ 60,738 |
Increase (decrease) due to: | |||
Capitalized interest transactions | (5,675) | (20,145) | (11,317) |
Tax audit settlements | 0 | 10,449 | 0 |
Foreign rate differential | (29,953) | 38,216 | (27,078) |
Deferred intercompany gain/loss | (33,765) | (86,635) | (9,062) |
Change in valuation allowance | 105,968 | (3,570) | 8,381 |
Prior period adjustments | (6,913) | 7,511 | (9,837) |
Unrecognized tax benefits | 9,715 | (35,791) | 17,544 |
Termination of local country activity | (6,316) | 0 | 0 |
Foreign taxes of subsidiaries for which U.S. federal income taxes have been provided | 0 | 0 | 9,155 |
Foreign tax credits/deductions | (2,160) | (4,925) | (31,078) |
Other, net | 1,562 | 2,123 | 1,217 |
Total provision (benefit) | 64,399 | (150,732) | 8,663 |
Deferred tax assets, current | |||
Accrued employee benefit plan costs | 30,598 | 30,912 | |
U.S. net operating loss | 0 | 0 | |
Interest expense limitation carryforward | 0 | 0 | |
Other NOLs and tax credit carryforwards | 0 | 819 | |
Other | 3,704 | 888 | |
Total deferred tax assets | 34,302 | 32,619 | |
Less: valuation allowance | (29,239) | 0 | |
Deferred tax assets, net of valuation allowance | 5,063 | 32,619 | |
Deferred tax liabilities, current | |||
Property, plant and equipment | 0 | 0 | |
Other | 5,063 | 5,134 | |
Total deferred tax liabilities | 5,063 | 5,134 | |
Net deferred tax asset (liability), current | 0 | 27,485 | |
Deferred tax assets, noncurrent | |||
Accrued employee benefit plan costs | 107,264 | 118,096 | |
U.S. net operating loss | 27,489 | 46,675 | |
Interest expense limitation carryforward | 42,129 | 0 | |
Other NOLs and tax credit carryforwards | 33,059 | 23,634 | |
Other | 26,986 | 28,069 | |
Total deferred tax assets | 247,394 | 232,216 | |
Less: valuation allowance | (99,068) | (22,339) | |
Deferred tax assets, net of valuation allowance | 148,326 | 209,877 | |
Deferred tax liabilities, noncurrent | |||
Property, plant and equipment | 296,610 | 369,095 | |
Other | 47,511 | 51,764 | |
Total deferred tax liabilities | 344,121 | 420,859 | |
Net deferred tax asset (liability), noncurrent | (195,795) | (210,982) | |
Changes in gross unrecognized tax benefits [Abstract] | |||
Gross unrecognized tax benefits - beginning of year | 54,660 | 81,920 | 58,900 |
Gross increases - tax positions in prior period | 4,425 | 19,928 | 11,021 |
Gross decreases - tax positions in prior period | (3,700) | (10,649) | (4,114) |
Gross increases - current period tax positions | 9,669 | 9,458 | 16,674 |
Settlements | 0 | (37,809) | 0 |
Lapse of statute of limitations | 0 | (8,188) | (561) |
Gross unrecognized tax benefit - end of year | 65,054 | 54,660 | 81,920 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | |||
Income from continuing operations before income taxes, domestic | (174,122) | (198,300) | 163,400 |
Income (loss) from continuing operations before income taxes, foreign | 331,832 | (71,300) | $ 97,800 |
U.K. [Member] | |||
Deferred tax assets, current | |||
Foreign net operating loss | 0 | 0 | |
Deferred tax assets, noncurrent | |||
Foreign net operating loss | 2,808 | 2,708 | |
Trinidad [Member] | |||
Deferred tax assets, current | |||
Foreign net operating loss | 0 | 0 | |
Deferred tax assets, noncurrent | |||
Foreign net operating loss | $ 7,659 | $ 13,034 |
SEGMENT AND GEOGRAPHIC AREA I60
SEGMENT AND GEOGRAPHIC AREA INFORMATION SEGMENT AND GEOGRAPHIC AREA INFORMATION - Segment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 2,137,018 | $ 1,824,383 | $ 1,579,284 |
Direct operating costs (excluding items below) | 993,087 | 991,340 | 860,893 |
Depreciation and amortization | 391,418 | 322,641 | 271,008 |
Selling, general and administrative | 115,779 | 125,834 | 131,373 |
Other operating items | 329,644 | 551,297 | (15,666) |
INCOME (LOSS) FROM OPERATIONS | 307,090 | (166,729) | 331,676 |
Capital expenditures | 722,889 | 1,958,227 | 607,311 |
Total assets (at end of year) | 8,347,267 | 8,392,350 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 2,137,018 | 1,824,383 | 1,579,284 |
Direct operating costs (excluding items below) | 993,087 | 991,340 | 860,893 |
Depreciation and amortization | 378,518 | 307,952 | 261,283 |
Selling, general and administrative | 0 | 0 | 0 |
Other operating items | 328,818 | 544,775 | (14,624) |
INCOME (LOSS) FROM OPERATIONS | 436,595 | (19,684) | 471,732 |
Capital expenditures | 683,891 | 1,922,517 | 565,859 |
Total assets (at end of year) | 7,537,966 | 7,828,066 | |
Operating Segments [Member] | Deepwater [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 747,792 | 179,834 | 0 |
Direct operating costs (excluding items below) | 276,542 | 87,778 | 0 |
Depreciation and amortization | 94,613 | 24,410 | 0 |
Selling, general and administrative | 0 | 0 | 0 |
Other operating items | 0 | 0 | 0 |
INCOME (LOSS) FROM OPERATIONS | 376,637 | 67,646 | 0 |
Capital expenditures | 555,127 | 1,577,257 | 241,997 |
Total assets (at end of year) | 3,100,052 | 2,665,089 | |
Operating Segments [Member] | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 1,389,226 | 1,644,549 | 1,579,284 |
Direct operating costs (excluding items below) | 716,545 | 903,562 | 860,893 |
Depreciation and amortization | 283,905 | 283,542 | 261,283 |
Selling, general and administrative | 0 | 0 | 0 |
Other operating items | 328,818 | 544,775 | (14,624) |
INCOME (LOSS) FROM OPERATIONS | 59,958 | (87,330) | 471,732 |
Capital expenditures | 128,764 | 345,260 | 323,862 |
Total assets (at end of year) | 4,437,914 | 5,162,977 | |
Unallocated Costs and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 0 | 0 | 0 |
Direct operating costs (excluding items below) | 0 | 0 | 0 |
Depreciation and amortization | 12,900 | 14,689 | 9,725 |
Selling, general and administrative | 115,779 | 125,834 | 131,373 |
Other operating items | 826 | 6,522 | (1,042) |
INCOME (LOSS) FROM OPERATIONS | (129,505) | (147,045) | (140,056) |
Capital expenditures | 38,998 | 35,710 | $ 41,452 |
Total assets (at end of year) | $ 809,301 | $ 564,284 |
SEGMENT AND GEOGRAPHIC AREA I61
SEGMENT AND GEOGRAPHIC AREA INFORMATION - Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | $ 2,137,018 | $ 1,824,383 | $ 1,579,284 |
Consolidated long-lived assets | 7,405,832 | 7,432,212 | |
Rigs under construction | 0 | 1,023,647 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 704,638 | 283,835 | 240,820 |
Consolidated long-lived assets | 3,522,701 | 1,374,420 | |
Saudi Arabia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 408,655 | 443,873 | 412,799 |
Consolidated long-lived assets | 896,754 | 932,714 | |
Norway [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 403,636 | 213,393 | 168,931 |
Consolidated long-lived assets | 1,330,009 | 1,394,994 | |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 163,037 | 288,248 | 327,217 |
Consolidated long-lived assets | 827,533 | 842,666 | |
Trinidad [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 141,749 | 94,722 | 101,262 |
Consolidated long-lived assets | 431,223 | 238,697 | |
Angola [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 96,429 | 80,499 | 0 |
Consolidated long-lived assets | 34 | 33 | |
Malaysia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 73,733 | 93,962 | 127,216 |
Consolidated long-lived assets | 365,921 | 383,308 | |
Qatar [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 54,029 | 53,522 | 21,938 |
Consolidated long-lived assets | 31,657 | 46,156 | |
Tunisia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 36,642 | 18,590 | 0 |
Consolidated long-lived assets | 0 | 214,790 | |
Spain [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 27,458 | 36,956 | 0 |
Consolidated long-lived assets | 0 | 759,275 | |
Indonesia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 27,012 | 125,851 | 90,027 |
Consolidated long-lived assets | 0 | 221,512 | |
Morocco [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 0 | 33,027 | 0 |
Egypt [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | 0 | 32,426 | 89,074 |
Namibia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Consolidated revenues | $ 0 | $ 25,479 | $ 0 |
MATERIAL CHARGES AND OTHER OP62
MATERIAL CHARGES AND OTHER OPERATING EXPENSES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)drilling_unit | Dec. 31, 2014USD ($)drilling_unit | Dec. 31, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 329,781 | $ 573,950 | $ 4,453 |
Charge for termination of a contract | 7,600 | ||
Jack-up Rigs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 329,800 | $ 565,700 | |
Number of drilling units impaired | drilling_unit | 10 | 12 | |
Aircraft [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 8,300 | ||
Dock and storage facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 4,500 |
SUPPLEMENTAL CASH FLOW INFORM63
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Accrued but unpaid additions to property and equipment at December 31 | $ 32,246 | $ 48,646 | $ 49,220 |
Cash interest payments in excess of interest capitalized | 143,829 | 78,744 | 65,824 |
Income tax payments (refunds), net | $ 37,455 | $ 8,549 | $ (5,929) |
GUARANTEES OF REGISTERED SECU64
GUARANTEES OF REGISTERED SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 339,154 | $ 1,092,844 | $ 1,024,008 | $ 484,228 | $ 339,154 |
Receivables - trade and other | 410,519 | 545,204 | |||
Other current assets | 26,528 | 54,581 | |||
Total current assets | 921,275 | 938,939 | |||
Property, plant and equipment - gross | 9,068,093 | 8,800,182 | |||
Less accumulated depreciation and amortization | 1,662,261 | 1,367,970 | |||
Property, plant and equipment - net | 7,405,832 | 7,432,212 | |||
Investments in subsidiaries | 0 | 0 | |||
Due from affiliates | 0 | 0 | |||
Other assets | 20,160 | 21,199 | |||
TOTAL ASSETS | 8,347,267 | 8,392,350 | |||
CURRENT LIABILITIES: | |||||
Accounts payable - trade | 109,574 | 102,773 | |||
Deferred revenues | 33,062 | 36,189 | |||
Accrued liabilities | 186,035 | 194,259 | |||
Total current liabilities | 328,671 | 333,221 | |||
Long-term debt | 2,692,419 | 2,788,482 | |||
Due to affiliates | 0 | 0 | |||
Other liabilities | 357,923 | 368,266 | |||
Deferred income taxes - net | 195,795 | 210,982 | |||
Shareholders' equity | 4,772,459 | 4,691,399 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,347,267 | 8,392,350 | |||
Condensed Consolidating Income Statements [Abstract] | |||||
REVENUES | 2,137,018 | 1,824,383 | 1,579,284 | ||
COSTS AND EXPENSES: | |||||
Direct operating costs (excluding items below) | 993,087 | 991,340 | 860,893 | ||
Depreciation and amortization | 391,418 | 322,641 | 271,008 | ||
Selling, general and administrative | 115,779 | 125,834 | 131,373 | ||
Loss (gain) on disposals of property and equipment | (7,703) | (1,778) | (20,119) | ||
Litigation settlement | 0 | (20,875) | 0 | ||
Material charges and other operating expenses | 337,347 | 573,950 | 4,453 | ||
Total costs and expenses | 1,829,928 | 1,991,112 | 1,247,608 | ||
INCOME (LOSS) FROM OPERATIONS | 307,090 | (166,729) | 331,676 | ||
OTHER INCOME (EXPENSE): | |||||
Interest expense, net of interest capitalized | (145,317) | (103,934) | (69,794) | ||
Interest income | 1,129 | 1,861 | 1,578 | ||
Loss on debt extinguishment | (1,482) | 0 | 0 | ||
Other - net | (3,710) | (805) | (2,221) | ||
Total other income (expense) - net | (149,380) | (102,878) | (70,437) | ||
BEFORE INCOME TAXES | 157,710 | (269,607) | 261,239 | ||
Provision (benefit) for income taxes | 64,399 | (150,732) | 8,663 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 93,311 | (118,875) | 252,576 | ||
DISCONTINUED OPERATIONS, NET OF TAX | 0 | 4,023 | 0 | ||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 0 | 0 | 0 | ||
NET INCOME (LOSS) | 93,311 | (114,852) | 252,576 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | 93,311 | (114,852) | 252,576 | ||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 6,964 | (87,293) | 63,315 | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense | 13,769 | 9,824 | 15,322 | ||
OTHER COMPREHENSIVE INCOME | 20,733 | (77,469) | 78,637 | ||
COMPREHENSIVE INCOME (LOSS) | 114,044 | (192,321) | 331,213 | ||
Consolidated Statement of Cash Flows [Abstract] | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 996,992 | 422,959 | 623,176 | ||
INVESTING ACTIVITIES: | |||||
Property, plant and equipment additions | (722,889) | (1,958,227) | (607,311) | ||
Proceeds from disposals of property, plant and equipment | 19,373 | 21,987 | 44,550 | ||
Advances on subsidiary note receivable | 0 | ||||
Collections on subsidiary note receivable | 0 | ||||
Investments in consolidated subsidiaries | 0 | 0 | 0 | ||
Net cash used in investing activities | (703,516) | (1,936,240) | (562,761) | ||
FINANCING ACTIVITIES: | |||||
Advances (to) from affiliates | 0 | 0 | 0 | ||
Contributions from parent | 0 | 0 | 0 | ||
Proceeds from borrowings | 220,000 | 793,380 | 0 | ||
Debt issue costs | 0 | (687) | 0 | ||
Dividends paid | (50,512) | (37,695) | 0 | ||
Repayments of borrowings | (317,890) | 0 | 0 | ||
Excess tax benefits from share-based compensation | 0 | (132) | 3,690 | ||
Proceeds from exercise of share options | 0 | 4,725 | 2,911 | ||
Other | 0 | 0 | 1,820 | ||
Net cash provided by (used in) financing activities | (148,402) | 759,591 | 8,421 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | 145,074 | (753,690) | 68,836 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 339,154 | 1,092,844 | 1,024,008 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 484,228 | 339,154 | 1,092,844 | ||
Rowan Companies plc (Parent) [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 45,909 | 64,292 | 58,628 | 17,297 | 45,909 |
Receivables - trade and other | 110 | 26 | |||
Other current assets | 394 | 424 | |||
Total current assets | 17,801 | 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 | 4,763,306 | 4,624,874 | |||
Due from affiliates | 629 | 36,586 | |||
Other assets | 0 | 0 | |||
TOTAL ASSETS | 4,781,736 | 4,707,819 | |||
CURRENT LIABILITIES: | |||||
Accounts payable - trade | 960 | 912 | |||
Deferred revenues | 0 | 0 | |||
Accrued liabilities | 778 | 400 | |||
Total current liabilities | 1,738 | 1,312 | |||
Long-term debt | 0 | 0 | |||
Due to affiliates | 2,880 | 9,282 | |||
Other liabilities | 4,659 | 5,826 | |||
Deferred income taxes - net | 0 | 0 | |||
Shareholders' equity | 4,772,459 | 4,691,399 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,781,736 | 4,707,819 | |||
Condensed Consolidating Income Statements [Abstract] | |||||
REVENUES | 0 | 0 | 0 | ||
COSTS AND EXPENSES: | |||||
Direct operating costs (excluding items below) | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | ||
Selling, general and administrative | 26,181 | 26,337 | 28,456 | ||
Loss (gain) on disposals of property and equipment | 0 | 0 | 0 | ||
Litigation settlement | 0 | ||||
Material charges and other operating expenses | 0 | 0 | 0 | ||
Total costs and expenses | 26,181 | 26,337 | 28,456 | ||
INCOME (LOSS) FROM OPERATIONS | (26,181) | (26,337) | (28,456) | ||
OTHER INCOME (EXPENSE): | |||||
Interest expense, net of interest capitalized | 0 | 0 | 0 | ||
Interest income | 823 | 340 | 210 | ||
Loss on debt extinguishment | 0 | ||||
Other - net | 22,310 | 22,402 | 9,997 | ||
Total other income (expense) - net | 23,133 | 22,742 | 10,207 | ||
BEFORE INCOME TAXES | (3,048) | (3,595) | (18,249) | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (3,048) | (3,595) | (18,249) | ||
DISCONTINUED OPERATIONS, NET OF TAX | 0 | ||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 96,359 | (111,257) | 270,825 | ||
NET INCOME (LOSS) | 93,311 | (114,852) | 252,576 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | 93,311 | (114,852) | 252,576 | ||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 6,964 | (87,293) | 63,315 | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense | 13,769 | 9,824 | 15,322 | ||
OTHER COMPREHENSIVE INCOME | 20,733 | (77,469) | 78,637 | ||
COMPREHENSIVE INCOME (LOSS) | 114,044 | (192,321) | 331,213 | ||
Consolidated Statement of Cash Flows [Abstract] | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (7,544) | 63,769 | (13,993) | ||
INVESTING ACTIVITIES: | |||||
Property, plant and equipment additions | 0 | 0 | 0 | ||
Proceeds from disposals of property, plant and equipment | 0 | 0 | 0 | ||
Advances on subsidiary note receivable | 0 | ||||
Collections on subsidiary note receivable | 36,593 | ||||
Investments in consolidated subsidiaries | 250 | 0 | (100) | ||
Net cash used in investing activities | 36,843 | 0 | (100) | ||
FINANCING ACTIVITIES: | |||||
Advances (to) from affiliates | (7,399) | (49,182) | 15,026 | ||
Contributions from parent | 0 | 0 | 0 | ||
Proceeds from borrowings | 0 | 0 | |||
Debt issue costs | 0 | ||||
Dividends paid | (50,512) | (37,695) | |||
Repayments of borrowings | 0 | ||||
Excess tax benefits from share-based compensation | 0 | 0 | |||
Proceeds from exercise of share options | 4,725 | 2,911 | |||
Other | 1,820 | ||||
Net cash provided by (used in) financing activities | (57,911) | (82,152) | 19,757 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (28,612) | (18,383) | 5,664 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,909 | 64,292 | 58,628 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 17,297 | 45,909 | 64,292 | ||
RCI (Issuer) [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Subsidiary ownership percentage by parent | 100.00% | ||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 48,580 | 92,116 | 228,085 | 9,506 | 48,580 |
Receivables - trade and other | 1,369 | 4,317 | |||
Other current assets | 19,230 | 45,829 | |||
Total current assets | 30,105 | 98,726 | |||
Property, plant and equipment - gross | 592,809 | 610,063 | |||
Less accumulated depreciation and amortization | 242,665 | 271,293 | |||
Property, plant and equipment - net | 350,144 | 338,770 | |||
Investments in subsidiaries | 6,028,242 | 5,863,509 | |||
Due from affiliates | 1,218,233 | 1,412,860 | |||
Other assets | 4,999 | 1,418 | |||
TOTAL ASSETS | 7,631,723 | 7,715,283 | |||
CURRENT LIABILITIES: | |||||
Accounts payable - trade | 19,111 | 8,576 | |||
Deferred revenues | 6 | 0 | |||
Accrued liabilities | 119,388 | 100,167 | |||
Total current liabilities | 138,505 | 108,743 | |||
Long-term debt | 2,692,419 | 2,788,482 | |||
Due to affiliates | 55,750 | 45,457 | |||
Other liabilities | 304,709 | 312,575 | |||
Deferred income taxes - net | 522,927 | 507,281 | |||
Shareholders' equity | 3,917,413 | 3,952,745 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,631,723 | 7,715,283 | |||
Condensed Consolidating Income Statements [Abstract] | |||||
REVENUES | 60,059 | 63,811 | 114,673 | ||
COSTS AND EXPENSES: | |||||
Direct operating costs (excluding items below) | 14,991 | 3,699 | 11,421 | ||
Depreciation and amortization | 19,535 | 13,767 | 39,658 | ||
Selling, general and administrative | 5,378 | 17 | 3,119 | ||
Loss (gain) on disposals of property and equipment | 930 | (4,986) | 130 | ||
Litigation settlement | 0 | ||||
Material charges and other operating expenses | 0 | 12,191 | 0 | ||
Total costs and expenses | 40,834 | 24,688 | 54,328 | ||
INCOME (LOSS) FROM OPERATIONS | 19,225 | 39,123 | 60,345 | ||
OTHER INCOME (EXPENSE): | |||||
Interest expense, net of interest capitalized | (145,317) | (103,934) | (69,794) | ||
Interest income | 22,064 | 3,558 | 528 | ||
Loss on debt extinguishment | (1,482) | ||||
Other - net | (22,026) | (22,291) | (9,915) | ||
Total other income (expense) - net | (146,761) | (122,667) | (79,181) | ||
BEFORE INCOME TAXES | (127,536) | (83,544) | (18,836) | ||
Provision (benefit) for income taxes | 30,515 | (116,790) | (21,757) | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (158,051) | 33,246 | 2,921 | ||
DISCONTINUED OPERATIONS, NET OF TAX | 4,023 | ||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | (133,997) | (142,289) | 114,805 | ||
NET INCOME (LOSS) | (292,048) | (105,020) | 117,726 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | (292,048) | (105,020) | 117,726 | ||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 6,964 | (87,293) | 63,315 | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense | 13,769 | 9,824 | 15,322 | ||
OTHER COMPREHENSIVE INCOME | 20,733 | (77,469) | 78,637 | ||
COMPREHENSIVE INCOME (LOSS) | (271,315) | (182,489) | 196,363 | ||
Consolidated Statement of Cash Flows [Abstract] | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 4,783 | 82,504 | 160,703 | ||
INVESTING ACTIVITIES: | |||||
Property, plant and equipment additions | (23,270) | (21,079) | (49,594) | ||
Proceeds from disposals of property, plant and equipment | 2,852 | 14,574 | 2,432 | ||
Advances on subsidiary note receivable | (481,300) | ||||
Collections on subsidiary note receivable | 503,490 | ||||
Investments in consolidated subsidiaries | (37,704) | (105,261) | (162,379) | ||
Net cash used in investing activities | (35,932) | (111,766) | (209,541) | ||
FINANCING ACTIVITIES: | |||||
Advances (to) from affiliates | 89,965 | (731,835) | (90,821) | ||
Contributions from parent | 0 | 0 | 0 | ||
Proceeds from borrowings | 220,000 | 793,380 | |||
Debt issue costs | (687) | ||||
Dividends paid | 0 | (75,000) | |||
Repayments of borrowings | (317,890) | ||||
Excess tax benefits from share-based compensation | (132) | 3,690 | |||
Proceeds from exercise of share options | 0 | 0 | |||
Other | 0 | ||||
Net cash provided by (used in) financing activities | (7,925) | (14,274) | (87,131) | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (39,074) | (43,536) | (135,969) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 48,580 | 92,116 | 228,085 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 9,506 | 48,580 | 92,116 | ||
Other non-guarantor subsidiaries [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 244,665 | 936,436 | 737,295 | 457,425 | 244,665 |
Receivables - trade and other | 409,040 | 540,861 | |||
Other current assets | 6,904 | 8,328 | |||
Total current assets | 873,369 | 793,854 | |||
Property, plant and equipment - gross | 8,475,284 | 8,190,119 | |||
Less accumulated depreciation and amortization | 1,419,596 | 1,096,677 | |||
Property, plant and equipment - net | 7,055,688 | 7,093,442 | |||
Investments in subsidiaries | 0 | 0 | |||
Due from affiliates | 55,751 | 71,867 | |||
Other assets | 15,161 | 19,781 | |||
TOTAL ASSETS | 7,999,969 | 7,978,944 | |||
CURRENT LIABILITIES: | |||||
Accounts payable - trade | 89,503 | 93,285 | |||
Deferred revenues | 33,056 | 36,189 | |||
Accrued liabilities | 65,869 | 93,692 | |||
Total current liabilities | 188,428 | 223,166 | |||
Long-term debt | 0 | 0 | |||
Due to affiliates | 1,215,983 | 1,466,574 | |||
Other liabilities | 48,555 | 49,865 | |||
Deferred income taxes - net | 150,822 | 167,094 | |||
Shareholders' equity | 6,396,181 | 6,072,245 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,999,969 | 7,978,944 | |||
Condensed Consolidating Income Statements [Abstract] | |||||
REVENUES | 2,133,365 | 1,824,623 | 1,573,111 | ||
COSTS AND EXPENSES: | |||||
Direct operating costs (excluding items below) | 1,028,449 | 1,048,235 | 957,972 | ||
Depreciation and amortization | 370,415 | 307,693 | 231,350 | ||
Selling, general and administrative | 91,741 | 104,118 | 99,798 | ||
Loss (gain) on disposals of property and equipment | (8,633) | 3,208 | (20,249) | ||
Litigation settlement | (20,875) | ||||
Material charges and other operating expenses | 337,347 | 561,759 | 4,453 | ||
Total costs and expenses | 1,819,319 | 2,004,138 | 1,273,324 | ||
INCOME (LOSS) FROM OPERATIONS | 314,046 | (179,515) | 299,787 | ||
OTHER INCOME (EXPENSE): | |||||
Interest expense, net of interest capitalized | (22,817) | (3,102) | (213) | ||
Interest income | 1,059 | 1,065 | 1,053 | ||
Loss on debt extinguishment | 0 | ||||
Other - net | (3,994) | (916) | (2,303) | ||
Total other income (expense) - net | (25,752) | (2,953) | (1,463) | ||
BEFORE INCOME TAXES | 288,294 | (182,468) | 298,324 | ||
Provision (benefit) for income taxes | 48,600 | (36,255) | 54,865 | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 239,694 | (146,213) | 243,459 | ||
DISCONTINUED OPERATIONS, NET OF TAX | 0 | ||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 0 | 0 | 0 | ||
NET INCOME (LOSS) | 239,694 | (146,213) | 243,459 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | 239,694 | (146,213) | 243,459 | ||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 0 | 0 | 0 | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense | 0 | 0 | 0 | ||
OTHER COMPREHENSIVE INCOME | 0 | 0 | 0 | ||
COMPREHENSIVE INCOME (LOSS) | 239,694 | (146,213) | 243,459 | ||
Consolidated Statement of Cash Flows [Abstract] | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,047,132 | 452,905 | 476,466 | ||
INVESTING ACTIVITIES: | |||||
Property, plant and equipment additions | (699,619) | (1,937,148) | (557,717) | ||
Proceeds from disposals of property, plant and equipment | 16,521 | 7,413 | 42,118 | ||
Advances on subsidiary note receivable | 0 | ||||
Collections on subsidiary note receivable | 0 | ||||
Investments in consolidated subsidiaries | 0 | 0 | 0 | ||
Net cash used in investing activities | (683,098) | (1,929,735) | (515,599) | ||
FINANCING ACTIVITIES: | |||||
Advances (to) from affiliates | (80,945) | 782,198 | 75,795 | ||
Contributions from parent | 37,454 | 105,261 | 162,479 | ||
Proceeds from borrowings | 481,300 | 0 | |||
Debt issue costs | 0 | ||||
Dividends paid | (49,000) | (102,400) | |||
Repayments of borrowings | (540,083) | ||||
Excess tax benefits from share-based compensation | 0 | 0 | |||
Proceeds from exercise of share options | 0 | 0 | |||
Other | 0 | ||||
Net cash provided by (used in) financing activities | (151,274) | 785,059 | 238,274 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | 212,760 | (691,771) | 199,141 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 244,665 | 936,436 | 737,295 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 457,425 | 244,665 | 936,436 | ||
Consolidating adjustments [Member] | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Receivables - trade and other | 0 | 0 | |||
Other current assets | 0 | 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 | (10,791,548) | (10,488,383) | |||
Due from affiliates | (1,274,613) | (1,521,313) | |||
Other assets | 0 | 0 | |||
TOTAL ASSETS | (12,066,161) | (12,009,696) | |||
CURRENT LIABILITIES: | |||||
Accounts payable - trade | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Accrued liabilities | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Due to affiliates | (1,274,613) | (1,521,313) | |||
Other liabilities | 0 | 0 | |||
Deferred income taxes - net | (477,954) | (463,393) | |||
Shareholders' equity | (10,313,594) | (10,024,990) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (12,066,161) | $ (12,009,696) | |||
Condensed Consolidating Income Statements [Abstract] | |||||
REVENUES | (56,406) | (64,051) | (108,500) | ||
COSTS AND EXPENSES: | |||||
Direct operating costs (excluding items below) | (50,353) | (60,594) | (108,500) | ||
Depreciation and amortization | 1,468 | 1,181 | 0 | ||
Selling, general and administrative | (7,521) | (4,638) | 0 | ||
Loss (gain) on disposals of property and equipment | 0 | 0 | 0 | ||
Litigation settlement | 0 | ||||
Material charges and other operating expenses | 0 | 0 | 0 | ||
Total costs and expenses | (56,406) | (64,051) | (108,500) | ||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | 0 | ||
OTHER INCOME (EXPENSE): | |||||
Interest expense, net of interest capitalized | 22,817 | 3,102 | 213 | ||
Interest income | (22,817) | (3,102) | (213) | ||
Loss on debt extinguishment | 0 | ||||
Other - net | 0 | 0 | 0 | ||
Total other income (expense) - net | 0 | 0 | 0 | ||
BEFORE INCOME TAXES | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | (14,716) | 2,313 | (24,445) | ||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 14,716 | (2,313) | 24,445 | ||
DISCONTINUED OPERATIONS, NET OF TAX | 0 | ||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 37,638 | 253,546 | (385,630) | ||
NET INCOME (LOSS) | 52,354 | 251,233 | (361,185) | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME (LOSS) | 52,354 | 251,233 | (361,185) | ||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | (6,964) | 87,293 | (63,315) | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense | (13,769) | (9,824) | (15,322) | ||
OTHER COMPREHENSIVE INCOME | (20,733) | 77,469 | (78,637) | ||
COMPREHENSIVE INCOME (LOSS) | 31,621 | 328,702 | (439,822) | ||
Consolidated Statement of Cash Flows [Abstract] | |||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (47,379) | (176,219) | 0 | ||
INVESTING ACTIVITIES: | |||||
Property, plant and equipment additions | 0 | 0 | 0 | ||
Proceeds from disposals of property, plant and equipment | 0 | 0 | 0 | ||
Advances on subsidiary note receivable | 481,300 | ||||
Collections on subsidiary note receivable | (540,083) | ||||
Investments in consolidated subsidiaries | 37,454 | 105,261 | 162,479 | ||
Net cash used in investing activities | (21,329) | 105,261 | 162,479 | ||
FINANCING ACTIVITIES: | |||||
Advances (to) from affiliates | (1,621) | (1,181) | 0 | ||
Contributions from parent | (37,454) | (105,261) | (162,479) | ||
Proceeds from borrowings | (481,300) | 0 | |||
Debt issue costs | 0 | ||||
Dividends paid | 49,000 | 177,400 | |||
Repayments of borrowings | 540,083 | ||||
Excess tax benefits from share-based compensation | 0 | 0 | |||
Proceeds from exercise of share options | 0 | 0 | |||
Other | 0 | ||||
Net cash provided by (used in) financing activities | 68,708 | 70,958 | (162,479) | ||
DECREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 0 | $ 0 | $ 0 |