Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 24, 2018 | |
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 | |
Entity Common Stock, Shares Outstanding | 126,897,121 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
REVENUE | $ 211.2 | $ 374.3 |
COSTS AND EXPENSES: | ||
Direct operating costs (excluding items below) | 157.4 | 171.3 |
Depreciation and amortization | 97.9 | 99.1 |
Selling, general and administrative | 25.6 | 24.2 |
Loss on disposals of property and equipment | 1.3 | 3.4 |
Total costs and expenses | 282.2 | 298 |
Income (Loss) from Equity Method Investments | (1.3) | 0 |
INCOME (LOSS) FROM OPERATIONS | (72.3) | 76.3 |
OTHER INCOME (EXPENSE): | ||
Interest expense | (38.5) | (39.6) |
Interest income | 6.9 | 2 |
Gain (loss) on extinguishment of debt | 0 | (0.2) |
Other - net | (2.2) | 1.5 |
Total other (expense) - net | (33.8) | (36.3) |
INCOME (LOSS) BEFORE INCOME TAXES | (106.1) | 40 |
Provision for income taxes | 6.2 | 29.7 |
NET INCOME (LOSS) | $ (112.3) | $ 10.3 |
NET INCOME (LOSS) PER SHARE - BASIC (in dollars per share) | $ (0.89) | $ 0.08 |
NET INCOME (LOSS) PER SHARE - DILUTED (in dollars per share) | $ (0.89) | $ 0.07 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ (112.3) | $ 10.3 |
OTHER COMPREHENSIVE INCOME: | ||
Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income tax expense of $0.7 and $0.5 for the three months ended March 31, 2018 and 2017, respectively. | 2.8 | 0.9 |
COMPREHENSIVE INCOME (LOSS) | $ (109.5) | $ 11.2 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense | $ 0.7 | $ 0.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,214.1 | $ 1,332.1 |
Receivables - trade and other | 202.8 | 212.8 |
Prepaid expenses and other current assets | 15.3 | 15.5 |
Total current assets | 1,432.2 | 1,560.4 |
PROPERTY AND EQUIPMENT: | ||
Drilling equipment | 8,792.3 | 8,697.8 |
Other property and equipment | 137.1 | 136.1 |
Property and equipment - gross | 8,929.4 | 8,833.9 |
Less accumulated depreciation and amortization | 2,375.4 | 2,281.2 |
Property and equipment - net | 6,554 | 6,552.7 |
Investment in unconsolidated subsidiary | 29.6 | 30.9 |
Due from Joint Ventures, Noncurrent | 270 | 270.2 |
Other assets | 42.2 | 44.1 |
TOTAL ASSETS | 8,328 | 8,458.3 |
CURRENT LIABILITIES: | ||
Accounts payable - trade | 93.4 | 97.2 |
Deferred revenues | 4.4 | 1.1 |
Accrued liabilities | 139.7 | 159.1 |
Total current liabilities | 237.5 | 257.4 |
Long-term debt | 2,510.5 | 2,510.3 |
Other liabilities | 286 | 293.6 |
Deferred income taxes - net | 10.8 | 10.9 |
Commitments and contingent liabilities | ||
SHAREHOLDERS' EQUITY: | ||
Class A Ordinary Shares, $0.125 par value; 128.1 and 128.1 shares issued, respectively; 126.9 and 126.3 shares outstanding, respectively | 16 | 16 |
Additional paid-in capital | 1,488.3 | 1,488.6 |
Retained earnings | 4,048.5 | 4,109.7 |
Cost of 1.2 and 1.8 treasury shares, respectively | (7.9) | (9.3) |
Accumulated other comprehensive loss | (261.7) | (218.9) |
Total shareholders' equity | 5,283.2 | 5,386.1 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,328 | $ 8,458.3 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
SHAREHOLDERS' EQUITY: | ||
Treasury shares (in shares) | 1.2 | 1.8 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 |
Common stock, shares issued (in shares) | 128.1 | 128.1 |
Common stock, shares outstanding (in shares) | 126.9 | 126.3 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | 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] |
Beginning Balance (in shares) at Dec. 31, 2016 | 125.5 | |||||
Beginning Balance at Dec. 31, 2016 | $ 5,113.9 | $ 16 | $ 1,471.7 | $ 3,830.4 | $ (7.2) | $ (197) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans (in shares) | 0.6 | |||||
Net shares issued (acquired) under share-based compensation plans | (5.3) | $ 0 | (3.2) | (2.1) | ||
Share-based compensation | 5.4 | 5.4 | ||||
Retirement benefit adjustments, net of taxes | 0.9 | 0.9 | ||||
Net income (loss) | 10.3 | 10.3 | ||||
Ending Balance (in shares) at Mar. 31, 2017 | 126.1 | |||||
Ending Balance at Mar. 31, 2017 | 5,331.8 | $ 16 | 1,473.9 | 4,047.3 | (9.3) | (196.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting standards (see Note 1) | 206.6 | 206.6 | ||||
Beginning Balance (in shares) at Dec. 31, 2017 | 126.3 | |||||
Beginning Balance at Dec. 31, 2017 | 5,386.1 | $ 16 | 1,488.6 | 4,109.7 | (9.3) | (218.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans (in shares) | 0.6 | |||||
Net shares issued (acquired) under share-based compensation plans | (3.4) | $ 0 | (4.8) | 1.4 | ||
Share-based compensation | 4.5 | 4.5 | ||||
Retirement benefit adjustments, net of taxes | 2.8 | 2.8 | ||||
Net income (loss) | (112.3) | (112.3) | ||||
Ending Balance (in shares) at Mar. 31, 2018 | 126.9 | |||||
Ending Balance at Mar. 31, 2018 | 5,283.2 | $ 16 | $ 1,488.3 | 4,048.5 | $ (7.9) | (261.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting standards (see Note 1) | $ 5.5 | $ 51.1 | $ (45.6) |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Retirement benefit adjustments, taxes | $ 0.7 | $ 0.5 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (112.3) | $ 10.3 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 97.9 | 99.1 |
Equity in losses of unconsolidated subsidiary | 1.3 | 0 |
Deferred income taxes | 0.1 | 16.8 |
Provision for pension and other postretirement benefits | 3.2 | 2.5 |
Cash loss on extinguishment of debt | 0 | 0.3 |
Share-based compensation expense | 4.3 | 6.8 |
Loss on disposals of property and equipment | 1.3 | 3.4 |
Other | 6 | 0.2 |
Changes in current assets and liabilities: | ||
Receivables - trade and other | 8.8 | (22.2) |
Prepaid expenses and other current assets | 0.2 | (1.2) |
Accounts payable | 0.6 | 3.4 |
Accrued income taxes | (4.1) | 2.3 |
Other current liabilities | (7.9) | (17.1) |
Other postretirement benefit claims paid | (0.5) | (0.9) |
Contributions to pension plans | (5.6) | (5.9) |
Deferred revenue | 3 | (6.3) |
Net changes in other noncurrent assets and liabilities | (7.4) | (9.7) |
Net cash provided by (used in) operating activities | (11.1) | 81.8 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (35.4) | (30.9) |
Proceeds from (Payments for) Other Financing Activities | (70.8) | 0 |
Proceeds from Collection of Long-term Loans to Related Parties | 1.3 | 0 |
Proceeds from disposals of property and equipment | 1.3 | 0.1 |
Net cash used in investing activities | (103.6) | (30.8) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Reductions of long-term debt | 0 | (128) |
Shares repurchased for tax withholdings on vesting of restricted share units | (3.3) | (5.3) |
Net cash used in financing activities | (3.3) | (133.3) |
DECREASE IN CASH AND CASH EQUIVALENTS | (118) | (82.3) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,332.1 | 1,255.5 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,214.1 | $ 1,173.2 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies 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 oil and gas industry, with a focus on high-specification and harsh-environment jack-up rigs and ultra-deepwater drillships. As of March 31, 2018, the Company operated in three segments: Deepwater, Jack-ups and ARO, the Company's 50 / 50 joint venture with Saudi Aramco. The Deepwater segment includes four ultra-deepwater drillships. The Jack-ups segment is composed of 23 self-elevating jack-up rigs and includes the impact of the various arrangements with ARO (see Note 3 ). ARO owns a fleet of five self-elevating jack-up rigs for operation in the Arabian Gulf for Saudi Aramco. The Company contracts its drilling rigs, related equipment and work crews primarily on a day-rate basis in markets throughout the world, currently including the US GOM, U.K. and Norwegian sectors of the North Sea, the Middle East and Trinidad. The financial statements included in this Quarterly Report are presented in USD and include the accounts of Rowan plc and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” and “Company” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The financial statements included in this Quarterly Report have been prepared in accordance with US GAAP and the applicable rules and regulations of the SEC. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. The financial information included in this report is unaudited, but management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The preparation of the condensed consolidated 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) , which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. ASC 606 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective approach and applied ASC 606 to all outstanding revenue contracts. In adopting ASC 606, the Company's revenue recognition differs from its historical revenue recognition pattern primarily as it relates to demobilization revenue. Such revenue, which was recognized upon completion of a contract under legacy accounting, is now estimated at contract inception and recognized over the term of the contract under the new guidance for customer contracts that have unconstrained demobilization provisions. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million credit to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. The adoption of this standard did not have an impact on our statement of operations or statement of cash flows. Typical contractual arrangements The Company contracts its drilling rigs, related equipment and work crews primarily on a “day rate” basis. Under day rate contracts, the Company generally receives a fixed amount per day for each day it is performing drilling or related services. In addition, customers may pay all or a portion of the cost of moving equipment and personnel to and from the well site. Contracts generally range in duration from one month to multiple years or alternatively may be based on a set number of wells. Both duration types can include additional option periods at the discretion of the customer which can be at a set price or may be determined upon exercise of the option. The contractual day rate generally varies based on the status of the drilling operations and generally includes an operating rate, move rate, repair rate, force majeure, standby rate, or other fixed type of day rate specified in the contract. Other fees may be stipulated in the contract related to mobilization and demobilization of the rig, upfront preparation and/or upgrades, penalties, performance bonuses and reimbursements for third party charges or requested modifications. Termination clauses are also specified and generally allow the customer to cancel for lack of performance by the contractor with no related fee or for convenience for an early termination fee, typically calculated as a standby rate multiplied by the days remaining in the firm term in the contract often reduced by a specified percentage. Performance obligations and transaction price Customers generally contract for a comprehensive agreement to provide integrated services to operate a rig and drill a well. Drillers are seen by the operator as the overseer of all services and are compensating the driller to provide that entire suite of services. In identifying performance obligations, ASC 606 series guidance states that a contract may contain a single performance obligation composed of a series of distinct goods or services if 1) each distinct good or service is substantially the same and would meet the criteria to be a performance obligation satisfied over time and 2) each distinct good or service is measured using the same method as it relates to the satisfaction of the overall performance obligation. The Company determined that the delivery of day rate drilling services is within the scope of the series guidance as both criteria noted above are met. Specifically, 1) each distinct increment of service (i.e. hour available to drill) that the driller promises to transfer represents a performance obligation that would meet the criteria for recognizing revenue over time, and 2) the driller would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. Consideration for activities that are not distinct within the scope of our contracts, such as mobilization, demobilization and upgrade/modification, and do not align with a distinct time increment within the contract term are allocated across the single performance obligation and are recognized over the expected recognition period in proportion to the passage of each hour available to drill. Consideration for activities which align with a distinct time increment within the contract term is recognized in the period when the services are performed. The transaction price for a drilling contract is based on the amount of consideration the Company expects to be entitled for providing drilling services over the specified term and includes both fixed amounts and unconstrained variable amounts. Typically, at contract commencement, the only fixed/known consideration components of a drilling contract are negotiated lump-sum amounts to be received for reimbursement of costs incurred for mobilization, demobilization (where it is contractually guaranteed) and/or rig modifications or upgrades. The Company estimates variable consideration using the expected value method and includes the amount in transaction price to the extent it is not constrained. Variable consideration is generally constrained if it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Recognition of revenue Drilling services are consumed as the services are performed and generally enhance a well site which the customer/operator controls. Work performed on a well site does not create an asset with an alternative use to the contractor since the well/asset being worked on is owned by the customer. Therefore, the Company’s measure of progress for a drilling contract is hours available to drill over the contracted duration. This unit of measure is representative of an output method as described in ASC 606. The following chart details the types of fees found in a typical drilling contract and the related recognition method under ASC 606: Fee type Revenue Recognition Day rate Recognition is based on the day rates earned/invoiced as it relates to the level of service provided for each fractional-hour throughout the contract. Mobilization and upgrade/modification Revenue (both lump-sum and day rate amounts) is estimated at contract inception and included in the transaction price to be recognized over the expected recognition period. Demobilization Unconstrained demobilization revenue (both lump-sum and day rate amounts) is estimated at contract inception, included in the transaction price, and recognized over the expected recognition period in proportion to the passage of each hour available to drill. Bonuses and penalty Unconstrained bonus and/or penalty revenue is estimated at contract inception and included in the transaction price. Amounts are recognized in the period corresponding to the distinct hourly increment(s) of service provided (i.e. the specific period which the bonus or penalty relates to). Reimbursement Recognized (gross of costs incurred), at the point the product or service is consumed, and in the amount billed to the customer . Future performance obligation and financing arrangements Due to the recognition of day rate, as described above, the Company's primary future promised service relates to unconstrained demobilization. Under ASC 606 the Company recognizes unconstrained demobilization revenue over the life of the contract whereas in a typical drilling contract the demobilization, and the resulting cash payment for demobilization, does not occur until the end of the contract. At March 31, 2018 , the Company did not have any unconstrained demobilization revenue. We have applied the optional exemption afforded in ASU No. 2014-09 and have not disclosed the variable consideration related to the estimated future day rate revenues. Additionally, the Company did not recognize any demobilization revenue into income during the three months ended March 31, 2018 . However, upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million credit to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Under ASC 606, a significant financing component may exist, regardless of whether the promise is explicitly stated or implied by the payment terms stipulated in a contract, where there is a separation between the timing of services provided and the timing of payment in contracts with terms exceeding one year. Generally, a typical drilling contract stipulates for billings on a monthly basis and payment terms vary by contract and customer but are customarily paid within 90 days. It is rare for a drilling contract to explicitly address a financing component and payments of up-front fees correspond to cash outlays which Rowan must undertake in order to complete a given drilling contract. Recently Adopted Accounting Pronouncements - In addition to Revenue from Contracts with Customers (ASC 606) (see "Revenue Recognition" above), the Company has recently adopted the following accounting pronouncements: Statement of Cash Flows - In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its condensed consolidated financial statements. Statement of Cash Flows Restricted Cash - In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees with the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no impact on its condensed consolidated financial statements. Other Income - In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASU 2017-05”), which clarifies the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. As of January 1, 2018, the Company adopted this guidance on a modified retrospective basis concurrently with ASC 606. This adoption had no impact on the Company's condensed consolidated financial statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (ASC 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Entities will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The ASU also allows only the service cost component to be eligible for capitalization. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its condensed consolidated financial statements. Accumulated Other Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (ASC 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. As permitted under this ASU, the Company elected early adoption of this ASU as of January 1, 2018 and recorded a $45.6 million increase to Retained earnings as a reclassification from Accumulated other comprehensive income. The stranded tax effects are for the U.S. income tax rate reduction recognized in the Consolidated Statement of Operations for the year ended December 31, 2017 for the deferred tax asset associated with employee benefit plans. New Accounting Pronouncements - to be adopted Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) : Amendments to the FASB ASC, which requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key qualitative and quantitative information about the entity's leasing arrangements. Based on current guidance, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. However, in January 2018, the FASB issued an exposure draft which allows for an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions, as described below. ASC 842 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. Under the updated accounting standards, the Company has preliminarily determined that its drilling contracts contain a lease component, and the adoption, therefore, will require that the Company separately recognize revenue associated with the lease and services components. However, in January 2018, the FASB issued an exposure draft which discussed a practical expedient which would allow companies to combine lease and non-lease components where the revenue recognition pattern is the same and where the combination of the service and lease component would be considered an operating lease. Based on proceedings within the FASB, it is anticipated that the FASB will issue an ASU related to this exposure draft during the second quarter of 2018. With respect to the applicability to the drilling industry of the practical expedients, the Company has and will continue to consult with its peers in the International Association of Drilling Contractors Accounting Sub-committee ("IADC Accounting Sub-committee") to evaluate any accounting standard updates issued as a result of the exposure draft for the applicability of this practical expedient to its drilling contracts. The adoption of ASC 842 will have an impact on how the Company's consolidated balance sheets, statements of operations, cash flows, and disclosures contained in its notes to consolidated financial statements will be presented; however, because the Company is currently evaluating the impact of the new exposure draft, it is unable to quantify the overall impact at this time. As a lessee, estimated future minimum lease commitments are approximately $40 million with an estimated present value of approximately $30 million based on the Company's currently identified lease portfolio. The Company will continue to refine its estimate, which is subject to change at the adoption date of ASC 842. Financial Instruments – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2020, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Contract Assets and Contract Liabilities [Abstract] | |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities Costs incurred for mobilization, upfront modifications/upgrades and contract preparation are direct costs incurred to fulfill contracts and are expensed over the expected recognition period. Such costs are deferred and recorded as contract assets or contract liabilities. The following table sets forth contract assets (mobilization and upgrade/modification costs) and contract liabilities (mobilization and upgrade/modification revenue) on the Condensed Consolidated Balance Sheets as of March 31, 2018 (in millions): Balance Sheet Classification March 31, 2018 December 31, 2017 Contract assets Current Prepaid expenses and other current assets $ 3.3 $ 2.8 Noncurrent Other assets — — $ 3.3 $ 2.8 Contract liabilities Current Deferred revenue $ 4.4 $ 1.1 Noncurrent Other liabilities 0.3 0.5 $ 4.7 $ 1.6 Presented in the table below are the changes in contract assets (mobilization and upgrade/modification costs) during the three months ended March 31, 2018 (in millions): March 31, 2018 Deferred mobilization and upgrade/modification costs Beginning balance $ 2.8 Plus: contractual additions 3.3 Less: amortization 2.8 Ending deferred mobilization and upgrade/modification costs $ 3.3 Presented in the table below are the changes in contract liabilities (mobilization and upgrade/modification revenue) during the three months ended March 31, 2018 (in millions): March 31, 2018 Deferred mobilization and upgrade/modification revenue Beginning balance $ 1.6 Plus: contractual additions 3.7 Less: amortization 0.6 Ending deferred mobilization and upgrade/modification revenue $ 4.7 No impairment losses were recognized on contract assets during the three months ended March 31, 2018 . |
Equity Method Investments and V
Equity Method Investments and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity Method Investments and Variable Interest Entities On November 21, 2016, Rowan and Saudi Aramco, through their subsidiaries, entered into a Shareholders’ Agreement to create a 50 / 50 joint venture, known as ARO. ARO commenced operations on October 17, 2017, and owns, manages and operates offshore drilling units in Saudi Arabia. The Company accounts for its interest in ARO using the equity method of accounting and only recognizes its portion of equity earnings in the Company's condensed consolidated financial statements. ARO is a variable interest entity; however, the Company is not the primary beneficiary and therefore does not consolidate ARO. The Company's judgment regarding the level of influence over ARO included considering key factors such as: each company's ownership interest, representation on the board of managers of ARO, ability to direct activities that most significantly impact ARO's economic performance, as well as the ability to influence policy-making decisions. Summarized financial information Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions): Three months ended March 31, 2018 Revenue $ 58.3 Direct operating costs (excluding items below) 33.4 Depreciation and amortization 16.6 Selling, general and administrative 6.4 Loss on disposals of property and equipment 0.1 Income from Operations 1.8 Interest expense (5.6 ) Benefit for income taxes (1.2 ) Net loss $ (2.6 ) Rowan's Equity in losses from ARO $ (1.3 ) March 31, 2018 December 31, 2017 Current assets $ 121.0 $ 108.6 Non-current assets 456.5 459.7 Total assets $ 577.5 $ 568.3 Current liabilities $ 43.4 $ 29.2 Non-current liabilities 542.7 545.1 Total liabilities $ 586.1 $ 574.3 Related party transactions In connection with the establishment of ARO the Company signed an Asset Transfer and Contribution Agreement. As part of this agreement the Company contributed cash to ARO of $357.7 million in exchange for a 10-year shareholder note receivable from ARO, initially totaling $357.7 million , at a stated interest rate of LIBOR plus two percent . As of March 31, 2018 and December 31, 2017 , the outstanding amount for this shareholder note receivable was $270.0 million and $271.3 million , consisting of $270.0 million and $270.2 million , respectively, included in Long-term note receivable from unconsolidated subsidiary on the Company's Condensed Consolidated Balance Sheets. In addition, at December 31, 2017, the Company had a current portion of shareholder note receivable of $1.1 million , which was included in Receivables - trade and other on the Company's Condensed Consolidated Balance Sheets. Interest related to this note is being recognized as a part of Interest Income in the Company's Condensed Consolidated Statement of Operations and totaled approximately $2.8 million for the three months ended March 31, 2018 . At March 31, 2018 , the Company had an interest receivable from ARO of $1.9 million which is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet. In conjunction with the establishment of ARO, the Company entered into a series of agreements with ARO including: a Transition Services Agreement and a Secondment Agreement. Pursuant to these agreements the Company, or its seconded employees, will provide various services to ARO, and in return, the Company is to be provided remuneration for those services. From time to time Rowan may sell equipment or supplies to ARO. Revenue and other amounts recognized related to these agreements and transactions is as follows (in millions): Three months ended March 31, 2018 Secondment Revenue - Jack-ups $ 13.0 Transition Services Revenue - Unallocated 9.0 Sales of supplies - Jack-ups 1.3 Total Revenue received from ARO $ 23.3 Proceeds from equipment sales to ARO (a) $ 1.2 (a) A $0.6 million loss was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statement of Operations. $1.2 million is included in Receivables - trade and other for the $1.2 million purchase price proceeds. Total accounts receivable from ARO totaled approximately $23.5 million and $17.3 million as of March 31, 2018 and December 31, 2017 , respectively, and are included in Receivables - trade and other on the Condensed Consolidated Balance Sheets. The Company also entered into a Rig Management Agreement pursuant to which ARO provides certain rig management services for Rowan's rigs while they are contracted with Saudi Aramco and the Company compensates ARO for the services in which they provide to Rowan. For the three months ended March 31, 2018 , the Company recognized $10.6 million in Direct operating cost in the Condensed Consolidated Statements of Operations related to these rig management services. Additionally, ARO may sell equipment or supplies to Rowan or purchase such for Rowan, in which case ARO is provided reimbursement. For the three months ended March 31, 2018 , the Company recognized $1.4 million in Direct operating cost in the Condensed Consolidated Statements of Operations related to these transactions. Accounts payable to ARO totaled approximately $11.1 million and $10.8 million as of March 31, 2018 and December 31, 2017 , respectively. The following summarizes the total assets and liabilities as reflected in the Company's Condensed Consolidated Balance Sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any amounts payable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO. March 31, 2018 December 31, 2017 Total assets $ 325.0 $ 319.5 Total liabilities 11.1 10.8 Maximum exposure to loss $ 313.9 $ 308.7 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional weighted effect of dilutive securities outstanding during the period, which includes nonvested restricted stock, RSUs, P-Units, share options and SARs granted under share-based compensation plans. The effect of share equivalents is not included in the computation for periods in which a net loss occurs because to do so would be anti-dilutive. A reconciliation of net income for diluted income per share is set forth below (in millions): Three months ended March 31, 2018 2017 Net income (loss) $ (112.3 ) $ 10.3 Income allocated to non-vested share awards — (0.9 ) Net income - adjusted for income allocated to non-vested share awards $ (112.3 ) $ 9.4 A reconciliation of shares for basic and diluted income per share is set forth below (in millions): Three months ended March 31, 2018 2017 Average common shares outstanding 126.5 125.7 Effect of dilutive securities - share-based compensation — 1.7 Average shares for diluted computations 126.5 127.4 Share options, SARs, nonvested restricted stock, P-Units and RSUs granted under share-based compensation plans are anti-dilutive 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. Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions): Three months ended March 31, 2018 2017 Share options and appreciation rights 1.5 1.5 Nonvested restricted shares and restricted share units 4.6 1.4 Total potentially dilutive shares 6.1 2.9 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees. The components of net periodic pension cost were as follows (dollars in millions): Three months ended March 31, 2018 2017 Service cost $ 2.7 $ 4.0 Interest cost (1) 6.3 6.3 Expected return on plan assets (1) (9.4 ) (9.4 ) Amortization of net loss (1) 7.8 5.7 Amortization of prior service credit (1) (1.2 ) (1.2 ) Net periodic pension cost $ 6.2 $ 5.4 (1) Included in Other - net on the Condensed Consolidated Statements of Operations The components of net periodic cost of other postretirement benefits were as follows (dollars in millions): Three months ended March 31, 2018 2017 Service cost $ — $ — Interest cost (1) 0.1 0.2 Amortization of net loss (1) 0.2 0.2 Amortization of prior service credit (1) (3.3 ) (3.3 ) Total other postretirement benefit cost $ (3.0 ) $ (2.9 ) (1) Included in Other - net on the Condensed Consolidated Statements of Operations During the three months ended March 31, 2018 , the Company contributed $6.1 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $21.2 million for the remainder of 2018 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Letters of credit – The Company periodically employs letters of credit in the normal course of its business and had outstanding letters of credit of approximately $7.3 million at March 31, 2018 , of which $5.0 million were issued under the Company's Revolving Credit Facility. Joint venture funding obligations – Each of Rowan and Saudi Aramco have agreed to take all steps necessary to ensure that ARO purchases at least 20 new build jack-up rigs ratably over 10 years once Saudi Aramco's joint venture to manufacture rigs commences operations. The first rig is expected to be delivered as early as 2021. The partners intend that the newbuild jack-up rigs will be financed out of available cash from operations and/or funds available from third party debt financing. The parties agreed that Saudi Aramco as a customer will provide drilling contracts to ARO in connection with the acquisition of the new rigs, which contracts could be used as security for third party debt financing if needed. If cash from operations or financing is not available to fund the cost of the newbuild jack-up rig, each partner is obligated to contribute funds, in the form of additional shareholder loans, to purchase such rigs, over time of up to a maximum amount of $1.25 billion per partner in the aggregate for all 20 newbuild jack-up rigs, which total investment amount is subject to a reduction formula as rigs are delivered. Further, no shareholder will be required to fund the delivery of more than three rigs during any twelve (12) month period. Uncertain tax positions – The Company has been advised by the IRS of proposed unfavorable tax adjustments of $85 million including applicable penalties for the open tax years 2009 through 2012. The unfavorable tax adjustments primarily related to the following items: 2009 tax benefits recognized as a result of applying the facts of a third-party tax case that provided favorable tax treatment for certain non-U.S. contracts entered into in prior years to the Company’s situation; transfer pricing; and domestic production activity deduction. The Company has protested the proposed adjustment. However, the IRS does not agree with the Company's protest and they have submitted the proposed unfavorable tax adjustments to be reviewed by the IRS appeals group. In years subsequent to 2012, the Company has similar positions that could be subject to adjustments for the open years. The Company has provided for amounts that it believes will be ultimately payable under the proposed adjustments and intends to vigorously defend its positions; however, if the Company determines the provisions for these matters to be inadequate due to new information or the Company is required to pay a significant amount of additional U.S. taxes and applicable penalties and interest in excess of amounts that have been provided for these matters, the Company's consolidated results of operations and cash flows could be materially and adversely affected. The gross unrecognized tax benefits excluding penalties and interest are $103 million and $102 million as of March 31, 2018 and December 31, 2017 , respectively. If the March 31, 2018 , net unrecognized tax benefits excluding penalties and interest were recognized, this would favorably impact the Company's tax provision by $41 million . It is reasonable that the existing liabilities for the unrecognized tax benefits may increase or decrease over the next 12 months as a result of audit closures and statute expirations, however, the ultimate timing of the resolution and/or closure of audits is highly uncertain. Pending or threatened litigation – The Company is involved in various routine legal proceedings incidental to its businesses and vigorously defends its position in all such matters. Although the outcome of such proceedings cannot be predicted with certainty, the Company believes that there are no known contingencies, claims or lawsuits that will have a material adverse effect on its financial position, results of operations or cash flows. In addition to the legal proceedings described above, the Company is vigorously contesting a claim by a former agent in the Middle East for compensation associated with the Company's termination of the agent's services. In February 2018, the agent made a demand for approximately $45 million , which the Company believes is without merit. The Company is making payments pursuant to its agreements with the agent and has an accrual for the Company's best estimate of the potential liability. Because of the current uncertainty of the basis for the claim and the application of which law may apply to resolving the dispute, the amount of the accrual may be different from the amount of the ultimate liability. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation On February 27, 2018, the Company granted RSUs to employees for annual incentive awards pursuant to its long-term incentive plan with a grant-date fair value aggregating $16.6 million which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date. The awards vest ratably over three years except to the extent they may vest earlier under the Company's retirement policy. Additionally, on February 27, 2018, the Company granted to certain members of management P-Units that have a target value of $100 per unit. The amount ultimately earned is determined by the Company’s absolute TSR performance and relative TSR performance as measured against a group of companies selected by the Company Compensation Committee, over a three -year period ending December 31, 2020. The amount earned could range from zero to $200 per unit depending on the Company's performance. Twenty-five percent of the P-Units’ value is determined by the Company’s absolute TSR performance and relative TSR ranking for each one -year period ended December 31, 2018 , 2019 , and 2020 and 25% of the P-Units’ value is determined by the Company's absolute TSR performance and relative TSR ranking for the three -year period ended December 31, 2020. P-Units cliff vest and payment is made, if any, on 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 Company Compensation Committee. Settlement of the P-Units granted may be in cash, shares or a combination thereof, at the Company Compensation Committee's discretion. Fair value for P-units are estimated using the Monte Carlo simulation model, which considers the probabilities of the Company’s absolute TSR performance and 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 end of the performance period. Liabilities for estimated P-Unit obligations at March 31, 2018 , for 2018 grants and prior, included $3.5 million and $8.4 million classified as current and noncurrent, respectively, compared to $11.5 million and $10.5 million , respectively, at December 31, 2017 . Current and noncurrent estimated P-Unit liabilities are included in Accrued liabilities, and Other liabilities, respectively, in the Condensed Consolidated Balance Sheets. At March 31, 2018 , estimated unrecognized compensation cost related to nonvested share-based compensation arrangements totaled approximately $62.7 million , which is expected to be recognized as compensation expense over a remaining weighted-average period of 1.8 years . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 measured at fair value on a recurring basis are presented below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) March 31, 2018: Assets - cash equivalents $ 1,205.3 $ 1,205.3 $ — $ — Other assets (Egyptian Pounds) 2.1 2.1 — — Other assets (Angolan Kwanza) 3.4 3.4 — — December 31, 2017: Assets - cash equivalents $ 1,332.1 $ 1,332.1 $ — $ — Other assets (Egyptian Pounds) 2.2 2.2 — — Other assets (Angolan Kwanza) 4.3 4.3 — — At March 31, 2018 , and December 31, 2017 , the Company held Egyptian pounds in the amount of $2.1 million and $2.2 million , respectively, which are classified as Other assets on the Condensed Consolidated Balance Sheets. The Company ceased drilling operations in Egypt in 2014, and is currently working to obtain access to the funds for use outside Egypt to the extent they are not utilized. Given stricter foreign currency exchange controls in Angola, the Company determined in May 2017 that its previous method of converting Angola Kwanza to USD is likely no longer feasible. As a result, at March 31, 2018 and December 31, 2017 , the Company classified its Angolan Kwanza USD equivalent balance of $3.4 million and $4.3 million , respectively, as non-current assets in Other assets on the Condensed Consolidated Balance Sheets. Currently, the Company considers the amounts to be recoverable and will continue to evaluate options to convert the Angolan Kwanza to USD. Trade receivables and trade payables, which are required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities. Other Fair Value Measurements Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. The Company’s publicly traded debt securities had a carrying value of $2.511 billion at March 31, 2018 , and an estimated fair value at that date aggregating $2.134 billion , compared to a carrying and fair value of $2.510 billion and $2.262 billion , respectively, at December 31, 2017 . Fair values of the Company's 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, which is a Level 2 fair value measurement. Concentrations of Credit Risk The Company invests its excess cash primarily in time deposits and high-quality money market accounts at several large commercial banks with strong credit ratings, and therefore believes that its 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. The Company routinely evaluates and monitors the credit quality of potential and current customers. The Company maintains reserves for credit losses when necessary and actual losses have been within management's expectations. Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the three months ended March 31 are set forth below: Percentage of revenue from major customers: Three months ended March 31, Customer Segment 2018 2017 Saudi Aramco Jack-ups 35 % 25 % Anadarko Deepwater 24 % 13 % ARO Drilling (1) Jack-ups and Unallocated and other 11 % — % Lundin Jack-ups 10 % 7 % Repsol Jack-ups 1 % 15 % Cobalt International Deepwater — % 15 % (1) Includes Secondment and Transition Services revenue received from ARO (see Note 3 ). Percentage of receivables from major customers: Customer Segment March 31, 2018 December 31, 2017 Saudi Aramco Jack-ups 41 % 34 % Anadarko Deepwater 19 % 19 % ARO Drilling (1) Jack-ups and Unallocated and other 13 % 9 % Lundin Jack-ups 8 % 7 % Repsol Jack-ups 3 % 5 % Cobalt International Deepwater — % — % (1) Includes receivables related to the services provided to ARO (see Note 3 ). |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' 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 (loss) for the period (in millions): Three months ended March 31, 2018 2017 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (8.0 ) $ (5.9 ) Amortization of prior service credit 4.5 4.5 Total before income taxes (3.5 ) (1.4 ) Income tax benefit 0.7 0.5 Total reclassifications for the period, net of income taxes $ (2.8 ) $ (0.9 ) The Company records unrealized gains and losses related to net periodic pension and other postretirement benefit cost net of estimated taxes in Accumulated other comprehensive income (loss). The Company has a valuation allowance against its net U.S. deferred tax asset that is not expected to be realized. A portion of this valuation allowance is related to deferred tax benefits or expense as recorded in Accumulated other comprehensive income (loss). |
Other Financial Statement Discl
Other Financial Statement Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
Other Financial Statement Disclosures [Abstract] | |
Other Financial Statement Disclosures | Other Financial Statement Disclosures Accounts Receivable – The following table sets forth the components of Receivables - trade and other (in millions): March 31, 2018 December 31, 2017 Trade $ 187.8 $ 195.8 Income tax 8.0 8.0 Other 7.0 9.0 Total Receivables - trade and other $ 202.8 $ 212.8 Accrued Liabilities – The following table sets forth the components of Accrued liabilities (in millions): March 31, 2018 December 31, 2017 Pension and other postretirement benefits $ 22.1 $ 27.0 Compensation and related employee costs 45.6 69.0 Interest 40.9 32.0 Income taxes 12.0 15.4 Other 19.1 15.7 Total Accrued liabilities $ 139.7 $ 159.1 Long-term Debt – Long-term debt consisted of the following (in millions): March 31, 2018 December 31, 2017 7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate) $ 200.9 $ 200.9 4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate) 624.4 624.6 4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate) 396.0 395.9 7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate) 497.6 497.5 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate) 395.2 395.1 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396.4 396.3 Total carrying value $ 2,510.5 $ 2,510.3 Revolving Credit Facility Availability under the Revolving Credit Facility is $1.50 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. As of March 31, 2018 , no amounts were outstanding and $5.0 million in letters of credit had been issued under the Revolving Credit Facility leaving remaining availability of $1.495 billion . Advances under the Revolving Credit Facility bear interest at LIBOR or Base Rate plus an applicable margin, which is dependent upon the Company's credit ratings. The applicable margins for LIBOR and Base Rate advances range from 1.125% - 2.0% and 0.125% - 1.0% , respectively. The Company is also required to pay a commitment fee on undrawn amounts of the Revolving Credit Facility, which ranges from 0.125% to 0.35% , depending on the Company's credit ratings. The Revolving Credit Facility requires the Company to maintain a total debt-to-capitalization ratio of less than or equal to 60% . The Company's consolidated debt to total capitalization ratio at March 31, 2018, was 32%. Additionally, the Revolving Credit Facility has customary restrictive covenants that, including others, restrict the Company's ability to incur certain debt and liens, enter into certain merger and acquisition agreements, sell, transfer, lease or otherwise dispose of all or substantially all of the Company's assets and substantially change the character of the Company's business from contract drilling. Debt Reductions In December 2016, the Company commenced cash tender offers for $750 million aggregate principal amount of the Subject Notes issued by the Company (the "Tender Offers"). The Tender Offers expired on January 3, 2017; however, there was also an early tender expiration on December 16, 2016 which provided for an early tender premium. Subject Notes validly tendered and accepted for purchase prior to the early tender expiration time on December 16, 2016, received tender offer consideration plus an early tender premium. As a result of the Tender Offers, in December 2016, the Company paid $490.5 million to repurchase $463.9 million aggregate principal amount of outstanding Subject Notes, consisting of $265.5 million of the 2017 Notes, $186.7 million of the 2019 Notes, $9.8 million of the 2022 Notes and $1.9 million of the 2024 Notes, and recognized a $33.6 million loss on the early extinguishment of debt which included approximately $5.9 million of bank and legal fees. In January 2017, at the expiration of the Tender Offers, the Company paid $32.8 million to repurchase an additional $34.6 million aggregate principal amount of outstanding Subject Notes, consisting of $0.1 million of the 2017 Notes, $0.9 million of the 2019 Notes and $33.6 million of the 2022 Notes. On January 9, 2017, the Company called for redemption $92.1 million aggregate principal amount of the 2017 Notes that remained outstanding and on February 8, 2017, the Company paid $94.0 million to redeem such notes. Debt Guarantee and Other Provisions 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). The Senior Notes are fully and unconditionally guaranteed on a senior and unsecured basis by Rowan plc (see Note 12 ). 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 2025 Notes contain a provision whereby upon a change of control repurchase event, as defined in the indenture governing the 2025 Notes, the Company may be required to make an offer to repurchase all outstanding notes at a price in cash equal to 101% of the aggregate principal amount of the notes repurchased, plus any accrued and unpaid interest to the repurchase date. Otherwise, the 2025 Notes contain substantially the same provisions as the Company’s other Senior Notes. Other provisions of the Company's 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 March 31, 2018 . Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $17.0 million and $15.9 million at March 31, 2018 and 2017 , respectively. On January 5, 2018, the Company purchased two 2013 Le Tourneau Super 116E jack-up rigs, the Bess Brants and Earnest Dees, formerly, P-59 and P-60, respectively, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”). The purchase price was $38.5 million per unit, or an aggregate $77.0 million , of which $7.7 million was paid as a deposit in December 2017. The remaining balance of $69.3 million as well as $1.5 million in transaction costs were paid in January 2018. Income Taxes – In accordance with US GAAP for interim reporting, the Company has historically estimated its full-year effective tax rate and applied this rate to ordinary income or loss for the reporting period. The Company has determined that since small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate this historical method would not provide reliable results for the quarter ended March 31, 2018 . Therefore, a discrete year-to-date method of reporting was used for the quarter ended March 31, 2018 . The Company provides for income taxes based upon the tax laws and rates in effect in the countries in which it conducts operations. The amounts of the provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Overall effective tax rate may therefore vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations, levels of income, intercompany gains or losses, and other factors. On December 22, 2017, the U.S. government enacted tax legislation commonly referred to as the U.S. Tax Act. The U.S. Tax Act significantly changes U.S. corporate income tax laws including but not limited to reducing the U.S. corporate income tax rate from 35% to 21%, requiring a one-time transition tax on mandatory deemed repatriation of certain unremitted non-U.S. earnings as of December 31, 2017, and changing how non-U.S. subsidiaries are taxed in the U.S. as of January 1, 2017. The Company is applying the guidance in accordance with the SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118") that allows provisional estimates for the tax effects of the U.S. Tax Act. As of March 31, 2018, the Company is still in the process of gathering data and completing its analysis on the U.S. Tax Act that includes the one-time transition tax, U.S. tax on non-U.S. subsidiaries, related net operating losses and valuation allowance, and have made no change with respect to the provisional amounts recorded. The provisional estimates will be finalized within one year from the date of enactment as allowed under SAB 118. The effective tax rate for the three months ended March 31, 2018 was (5.9)% as a result of tax expense on pre-tax loss, compared to 74.2% as a result of a tax expense on pre-tax income for the comparable prior-year period ended March 31, 2017 . The Company recognized an income tax provision of $6.2 million for the three months ended March 31, 2018 , compared to an income tax provision of $29.7 million for the comparable period of 2017 . The decrease of $23.5 million is primarily attributed to the current period estimate using a discrete year-to-date interim reporting method and the impact from the three months ended March 31, 2017 of additional deferred tax expense related to a) restructuring and b) an increase in valuation allowance on Luxembourg deferred tax assets. The Company has not provided deferred income taxes on certain undistributed earnings of non-U.K. subsidiaries. No subsidiary of RCI has a plan to distribute earnings to RCI in a manner that would cause those earnings to be subject to U.S., U.K., or other local country taxation. If facts and circumstances cause a change in expectations regarding future tax consequences, the resulting tax impact could have a material effect on the Company's consolidated financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information and Disaggregation of Revenue Prior to ARO commencing operations on October 17, 2017 (see Note 3 ), the Company operated in two segments: Deepwater and Jack-ups. The Company now operates in three principal operating segments: Deepwater, which consists of its drillship operations, Jack-ups, which is composed of the Company's jack-up operations and results associated with the Company's arrangements with ARO primarily under the Transition Services Agreement (direct operating costs only), Rig Management Agreement and Secondment Agreement (see Note 3 ), and ARO, the Company's 50 / 50 joint venture with Saudi Aramco. ARO was formed to own, manage and operate offshore drilling units in Saudi Arabia. These segments provide one primary service – contract drilling. The Company evaluates performance primarily based on income from operations. Depreciation and amortization and Selling, general and administrative expenses related to the Company's corporate function and other administrative offices have not been allocated to its operating segments for purposes of measuring segment operating income and are included in "Unallocated and other." In addition, revenue and general and administrative costs related to providing transition services to ARO are included in "Unallocated and other" (see Note 3 ). "Other operating items - expense" consists of, to the extent applicable, gains and losses on asset sales. Segment results are presented below (in millions): Three months ended March 31, Deepwater Jack-ups ARO Unallocated and other Reportable segments total Eliminations and adjustments Consolidated 2018 Revenue $ 52.1 $ 150.1 $ 58.3 $ 9.0 $ 269.5 $ (58.3 ) $ 211.2 Operating expenses: Direct operating costs (excluding items below) 29.0 128.4 33.4 — 190.8 (33.4 ) 157.4 Depreciation and amortization 26.9 70.3 16.6 0.7 114.5 (16.6 ) 97.9 Selling, general and administrative — — 6.4 25.6 32.0 (6.4 ) 25.6 Other operating items - expense — 1.3 0.1 — 1.4 (0.1 ) 1.3 Equity in losses of unconsolidated subsidiary — — — — — (1.3 ) (1.3 ) Income (loss) from operations $ (3.8 ) $ (49.9 ) $ 1.8 $ (17.3 ) $ (69.2 ) $ (3.1 ) $ (72.3 ) 2017 (As adjusted) Revenue $ 160.7 $ 213.6 $ — $ — $ 374.3 $ — $ 374.3 Operating expenses: Direct operating costs (excluding items below) 44.9 126.4 — — 171.3 — 171.3 Depreciation and amortization 28.3 70.1 — 0.7 99.1 — 99.1 Selling, general and administrative — — — 24.2 24.2 — 24.2 Other operating items - expense — 3.4 — — 3.4 — 3.4 Income (loss) from operations $ 87.5 $ 13.7 $ — $ (24.9 ) $ 76.3 $ — $ 76.3 The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next. Three months ended March 31, 2018 2017 Deepwater Revenue: United States $ 52.1 $ 160.7 Total $ 52.1 $ 160.7 Three months ended March 31, 2018 2017 Jack-ups Revenue: Saudi Arabia $ 87.9 $ 94.2 Norway 38.8 51.2 Trinidad 11.6 41.4 United Kingdom 10.4 15.5 United States 1.4 10.8 Other — 0.5 Total $ 150.1 $ 213.6 Three months ended March 31, 2018 2017 Unallocated and Other Revenue: Saudi Arabia $ 9.0 $ — Total $ 9.0 $ — Revenue from the Unallocated and other segment consists of transition services for ARO. Fees for these related services are recognized as the service is performed and billed on a monthly basis. |
Guarantees of Registered Securi
Guarantees of Registered Securities | 3 Months Ended |
Mar. 31, 2018 | |
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 and amounts outstanding under RCI’s Revolving Credit Facility, if any. The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc’s guarantee of the Senior Notes and reflects the corporate ownership structure as of March 31, 2018 . Financial Information for the three months ended March 31, 2017 , has been recast to reflect changes to the corporate ownership structure that occurred in the fourth quarter of 2017. In addition, the Condensed Consolidating Statements of Operations, Condensed Consolidating Statements of Other Comprehensive Income and Condensed Consolidating Statement of Cash Flows for the three months ended March 31, 2017 , have been adjusted for the adoption of new accounting standards (see Note 1 for additional information). Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 1.7 $ 211.3 $ (1.8 ) $ 211.2 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 0.2 157.3 (0.1 ) 157.4 Depreciation and amortization — — 97.9 — 97.9 Selling, general and administrative 7.4 0.3 19.6 (1.7 ) 25.6 (Gain) loss on disposals of property and equipment — (0.1 ) 1.4 — 1.3 Total costs and expenses 7.4 0.4 276.2 (1.8 ) 282.2 Equity in losses of unconsolidated subsidiary — — (1.3 ) — (1.3 ) INCOME (LOSS) FROM OPERATIONS (7.4 ) 1.3 (66.2 ) — (72.3 ) OTHER INCOME (EXPENSE): Interest expense — (38.5 ) (0.5 ) 0.5 (38.5 ) Interest income — 1.1 6.3 (0.5 ) 6.9 Other - net 4.9 (5.4 ) (1.7 ) — (2.2 ) Total other income (expense), net 4.9 (42.8 ) 4.1 — (33.8 ) LOSS BEFORE INCOME TAXES (2.5 ) (41.5 ) (62.1 ) — (106.1 ) Provision for income taxes — 3.4 7.2 (4.4 ) 6.2 Equity in earnings (losses) of subsidiaries, net of tax (109.8 ) 31.7 — 78.1 — NET LOSS $ (112.3 ) $ (13.2 ) $ (69.3 ) $ 82.5 $ (112.3 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 14.5 $ 374.5 $ (14.7 ) $ 374.3 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 5.3 179.6 (13.6 ) 171.3 Depreciation and amortization — 4.7 94.4 — 99.1 Selling, general and administrative 5.9 (2.1 ) 21.5 (1.1 ) 24.2 Loss on disposals of property and equipment — 0.2 3.2 — 3.4 Total costs and expenses 5.9 — 8.1 — 298.7 — (14.7 ) 298.0 INCOME (LOSS) FROM OPERATIONS (5.9 ) 6.4 75.8 — 76.3 OTHER INCOME (EXPENSE): Interest expense — (39.6 ) (0.1 ) 0.1 (39.6 ) Interest income — 0.7 1.4 (0.1 ) 2.0 Loss on extinguishment of debt — (0.2 ) — — (0.2 ) Other - net 5.1 (4.8 ) 1.2 — 1.5 Total other income (expense), net 5.1 (43.9 ) 2.5 — (36.3 ) INCOME (LOSS) BEFORE INCOME TAXES (0.8 ) (37.5 ) 78.3 — 40.0 Provision (benefit) for income taxes — (10.5 ) 39.7 0.5 29.7 Equity in earnings of subsidiaries, net of tax 11.1 17.7 — (28.8 ) — NET INCOME (LOSS) $ 10.3 $ (9.3 ) $ 38.6 $ (29.3 ) $ 10.3 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET LOSS $ (112.3 ) $ (13.2 ) $ (69.3 ) $ 82.5 $ (112.3 ) OTHER COMPREHENSIVE INCOME: Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes 2.8 2.8 — (2.8 ) 2.8 COMPREHENSIVE LOSS $ (109.5 ) $ (10.4 ) $ (69.3 ) $ 79.7 $ (109.5 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 10.3 $ (9.3 ) $ 38.6 $ (29.3 ) $ 10.3 OTHER COMPREHENSIVE INCOME: Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes 0.9 0.9 — (0.9 ) 0.9 COMPREHENSIVE INCOME (LOSS) $ 11.2 $ (8.4 ) $ 38.6 $ (30.2 ) $ 11.2 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 161.0 $ 1,052.9 $ — $ 1,214.1 Receivables - trade and other — 0.8 202.0 — 202.8 Prepaid expenses and other current assets 0.2 8.1 7.0 — 15.3 Total current assets 0.4 169.9 1,261.9 — 1,432.2 Property and equipment - gross — 240.1 8,689.3 — 8,929.4 Less accumulated depreciation and amortization — 123.8 2,251.6 — 2,375.4 Property and equipment - net — 116.3 6,437.7 — 6,554.0 Investments in consolidated subsidiaries 5,303.9 6,293.3 — (11,597.2 ) — Due from affiliates 0.2 680.7 9.5 (690.4 ) — Long-term note receivable from unconsolidated subsidiary — — 270.0 — 270.0 Investment in unconsolidated subsidiary — — 29.6 — 29.6 Other assets — 4.5 6.5 31.2 42.2 $ 5,304.5 $ 7,264.7 $ 8,015.2 $ (12,256.4 ) $ 8,328.0 CURRENT LIABILITIES: Accounts payable - trade $ 0.4 $ 15.5 $ 77.5 $ — $ 93.4 Deferred revenue — — 4.4 — 4.4 Accrued liabilities — 87.5 52.2 — 139.7 Total current liabilities 0.4 103.0 134.1 — 237.5 Long-term debt — 2,510.5 — — 2,510.5 Due to affiliates 17.8 7.7 664.9 (690.4 ) — Other liabilities 3.1 253.8 29.1 — 286.0 Deferred income taxes - net — 186.8 10.8 (186.8 ) 10.8 Shareholders' equity 5,283.2 4,202.9 7,176.3 (11,379.2 ) 5,283.2 $ 5,304.5 $ 7,264.7 $ 8,015.2 $ (12,256.4 ) $ 8,328.0 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2017 (In millions) (Audited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Receivables - trade and other — 1.2 211.6 — 212.8 Prepaid expenses and other current assets 0.3 10.7 4.5 — 15.5 Total current assets 0.5 218.2 1,341.7 — 1,560.4 Property and equipment - gross — 241.9 8,592.0 — 8,833.9 Less accumulated depreciation and amortization — 121.4 2,159.8 — 2,281.2 Property and equipment - net — 120.5 6,432.2 — 6,552.7 Investments in consolidated subsidiaries 5,401.1 6,253.5 — (11,654.6 ) — Due from affiliates 0.2 680.0 11.5 (691.7 ) — Long-term note receivable from unconsolidated subsidiary — — 270.2 — 270.2 Investment in unconsolidated subsidiary — — 30.9 — 30.9 Other assets — 5.2 7.6 31.3 44.1 $ 5,401.8 $ 7,277.4 $ 8,094.1 $ (12,315.0 ) $ 8,458.3 CURRENT LIABILITIES: Accounts payable - trade $ 0.7 $ 12.9 $ 83.6 $ — $ 97.2 Deferred revenue — — 1.1 — 1.1 Accrued liabilities 0.1 95.6 63.4 — 159.1 Total current liabilities 0.8 108.5 148.1 — 257.4 Long-term debt — 2,510.3 — — 2,510.3 Due to affiliates 11.2 11.4 669.1 (691.7 ) — Other liabilities 3.8 261.2 28.6 — 293.6 Deferred income taxes - net (0.1 ) 182.7 10.9 (182.6 ) 10.9 Shareholders' equity 5,386.1 4,203.3 7,237.4 (11,440.7 ) 5,386.1 $ 5,401.8 $ 7,277.4 $ 8,094.1 $ (12,315.0 ) $ 8,458.3 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3.4 ) $ (41.6 ) $ 33.9 $ — $ (11.1 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (3.4 ) (32.0 ) — (35.4 ) Purchase of rigs — — (70.8 ) — (70.8 ) Proceeds from disposals of property and equipment — 0.1 1.2 — 1.3 Repayments of note receivable from unconsolidated subsidiary — — 1.3 — 1.3 Net cash used in investing activities — (3.3 ) (100.3 ) — (103.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 6.7 (0.4 ) (6.3 ) — — Shares repurchased for tax withholdings on vesting of restricted share units (3.3 ) — — — (3.3 ) Net cash provided by (used in) financing activities 3.4 (0.4 ) (6.3 ) — (3.3 ) DECREASE IN CASH AND CASH EQUIVALENTS — (45.3 ) (72.7 ) — (118.0 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 0.2 206.3 1,125.6 — 1,332.1 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 0.2 $ 161.0 $ 1,052.9 $ — $ 1,214.1 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1.7 ) $ 73.8 $ 9.7 $ — $ 81.8 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (9.7 ) (21.2 ) — (30.9 ) Proceeds from disposals of property and equipment — — 0.1 — 0.1 Net cash used in investing activities — (9.7 ) (21.1 ) — (30.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 7.2 (166.0 ) 158.8 — — Reductions of long-term debt — (128.0 ) — — (128.0 ) Shares repurchased for tax withholdings on vesting of restricted share units (5.3 ) — — — (5.3 ) Net cash provided by (used in) financing activities 1.9 (294.0 ) 158.8 — (133.3 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0.2 (229.9 ) 147.4 — (82.3 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3.7 532.0 719.8 — 1,255.5 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3.9 $ 302.1 $ 867.2 $ — $ 1,173.2 |
Nature of Operations and Basi22
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial statements included in this Quarterly Report have been prepared in accordance with US GAAP and the applicable rules and regulations of the SEC. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. The financial information included in this report is unaudited, but management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The preparation of the condensed consolidated 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) , which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. ASC 606 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective approach and applied ASC 606 to all outstanding revenue contracts. In adopting ASC 606, the Company's revenue recognition differs from its historical revenue recognition pattern primarily as it relates to demobilization revenue. Such revenue, which was recognized upon completion of a contract under legacy accounting, is now estimated at contract inception and recognized over the term of the contract under the new guidance for customer contracts that have unconstrained demobilization provisions. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million credit to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. The adoption of this standard did not have an impact on our statement of operations or statement of cash flows. Typical contractual arrangements The Company contracts its drilling rigs, related equipment and work crews primarily on a “day rate” basis. Under day rate contracts, the Company generally receives a fixed amount per day for each day it is performing drilling or related services. In addition, customers may pay all or a portion of the cost of moving equipment and personnel to and from the well site. Contracts generally range in duration from one month to multiple years or alternatively may be based on a set number of wells. Both duration types can include additional option periods at the discretion of the customer which can be at a set price or may be determined upon exercise of the option. The contractual day rate generally varies based on the status of the drilling operations and generally includes an operating rate, move rate, repair rate, force majeure, standby rate, or other fixed type of day rate specified in the contract. Other fees may be stipulated in the contract related to mobilization and demobilization of the rig, upfront preparation and/or upgrades, penalties, performance bonuses and reimbursements for third party charges or requested modifications. Termination clauses are also specified and generally allow the customer to cancel for lack of performance by the contractor with no related fee or for convenience for an early termination fee, typically calculated as a standby rate multiplied by the days remaining in the firm term in the contract often reduced by a specified percentage. Performance obligations and transaction price Customers generally contract for a comprehensive agreement to provide integrated services to operate a rig and drill a well. Drillers are seen by the operator as the overseer of all services and are compensating the driller to provide that entire suite of services. In identifying performance obligations, ASC 606 series guidance states that a contract may contain a single performance obligation composed of a series of distinct goods or services if 1) each distinct good or service is substantially the same and would meet the criteria to be a performance obligation satisfied over time and 2) each distinct good or service is measured using the same method as it relates to the satisfaction of the overall performance obligation. The Company determined that the delivery of day rate drilling services is within the scope of the series guidance as both criteria noted above are met. Specifically, 1) each distinct increment of service (i.e. hour available to drill) that the driller promises to transfer represents a performance obligation that would meet the criteria for recognizing revenue over time, and 2) the driller would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. Consideration for activities that are not distinct within the scope of our contracts, such as mobilization, demobilization and upgrade/modification, and do not align with a distinct time increment within the contract term are allocated across the single performance obligation and are recognized over the expected recognition period in proportion to the passage of each hour available to drill. Consideration for activities which align with a distinct time increment within the contract term is recognized in the period when the services are performed. The transaction price for a drilling contract is based on the amount of consideration the Company expects to be entitled for providing drilling services over the specified term and includes both fixed amounts and unconstrained variable amounts. Typically, at contract commencement, the only fixed/known consideration components of a drilling contract are negotiated lump-sum amounts to be received for reimbursement of costs incurred for mobilization, demobilization (where it is contractually guaranteed) and/or rig modifications or upgrades. The Company estimates variable consideration using the expected value method and includes the amount in transaction price to the extent it is not constrained. Variable consideration is generally constrained if it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Recognition of revenue Drilling services are consumed as the services are performed and generally enhance a well site which the customer/operator controls. Work performed on a well site does not create an asset with an alternative use to the contractor since the well/asset being worked on is owned by the customer. Therefore, the Company’s measure of progress for a drilling contract is hours available to drill over the contracted duration. This unit of measure is representative of an output method as described in ASC 606. The following chart details the types of fees found in a typical drilling contract and the related recognition method under ASC 606: Fee type Revenue Recognition Day rate Recognition is based on the day rates earned/invoiced as it relates to the level of service provided for each fractional-hour throughout the contract. Mobilization and upgrade/modification Revenue (both lump-sum and day rate amounts) is estimated at contract inception and included in the transaction price to be recognized over the expected recognition period. Demobilization Unconstrained demobilization revenue (both lump-sum and day rate amounts) is estimated at contract inception, included in the transaction price, and recognized over the expected recognition period in proportion to the passage of each hour available to drill. Bonuses and penalty Unconstrained bonus and/or penalty revenue is estimated at contract inception and included in the transaction price. Amounts are recognized in the period corresponding to the distinct hourly increment(s) of service provided (i.e. the specific period which the bonus or penalty relates to). Reimbursement Recognized (gross of costs incurred), at the point the product or service is consumed, and in the amount billed to the customer . Future performance obligation and financing arrangements Due to the recognition of day rate, as described above, the Company's primary future promised service relates to unconstrained demobilization. Under ASC 606 the Company recognizes unconstrained demobilization revenue over the life of the contract whereas in a typical drilling contract the demobilization, and the resulting cash payment for demobilization, does not occur until the end of the contract. At March 31, 2018 , the Company did not have any unconstrained demobilization revenue. We have applied the optional exemption afforded in ASU No. 2014-09 and have not disclosed the variable consideration related to the estimated future day rate revenues. Additionally, the Company did not recognize any demobilization revenue into income during the three months ended March 31, 2018 . However, upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million credit to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Under ASC 606, a significant financing component may exist, regardless of whether the promise is explicitly stated or implied by the payment terms stipulated in a contract, where there is a separation between the timing of services provided and the timing of payment in contracts with terms exceeding one year. Generally, a typical drilling contract stipulates for billings on a monthly basis and payment terms vary by contract and customer but are customarily paid within 90 days. It is rare for a drilling contract to explicitly address a financing component and payments of up-front fees correspond to cash outlays which Rowan must undertake in order to complete a given drilling contract. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements - In addition to Revenue from Contracts with Customers (ASC 606) (see "Revenue Recognition" above), the Company has recently adopted the following accounting pronouncements: Statement of Cash Flows - In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its condensed consolidated financial statements. Statement of Cash Flows Restricted Cash - In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees with the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no impact on its condensed consolidated financial statements. Other Income - In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASU 2017-05”), which clarifies the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. As of January 1, 2018, the Company adopted this guidance on a modified retrospective basis concurrently with ASC 606. This adoption had no impact on the Company's condensed consolidated financial statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (ASC 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Entities will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The ASU also allows only the service cost component to be eligible for capitalization. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its condensed consolidated financial statements. Accumulated Other Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (ASC 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. As permitted under this ASU, the Company elected early adoption of this ASU as of January 1, 2018 and recorded a $45.6 million increase to Retained earnings as a reclassification from Accumulated other comprehensive income. The stranded tax effects are for the U.S. income tax rate reduction recognized in the Consolidated Statement of Operations for the year ended December 31, 2017 for the deferred tax asset associated with employee benefit plans. New Accounting Pronouncements - to be adopted Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) : Amendments to the FASB ASC, which requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key qualitative and quantitative information about the entity's leasing arrangements. Based on current guidance, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. However, in January 2018, the FASB issued an exposure draft which allows for an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions, as described below. ASC 842 is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. Under the updated accounting standards, the Company has preliminarily determined that its drilling contracts contain a lease component, and the adoption, therefore, will require that the Company separately recognize revenue associated with the lease and services components. However, in January 2018, the FASB issued an exposure draft which discussed a practical expedient which would allow companies to combine lease and non-lease components where the revenue recognition pattern is the same and where the combination of the service and lease component would be considered an operating lease. Based on proceedings within the FASB, it is anticipated that the FASB will issue an ASU related to this exposure draft during the second quarter of 2018. With respect to the applicability to the drilling industry of the practical expedients, the Company has and will continue to consult with its peers in the International Association of Drilling Contractors Accounting Sub-committee ("IADC Accounting Sub-committee") to evaluate any accounting standard updates issued as a result of the exposure draft for the applicability of this practical expedient to its drilling contracts. The adoption of ASC 842 will have an impact on how the Company's consolidated balance sheets, statements of operations, cash flows, and disclosures contained in its notes to consolidated financial statements will be presented; however, because the Company is currently evaluating the impact of the new exposure draft, it is unable to quantify the overall impact at this time. As a lessee, estimated future minimum lease commitments are approximately $40 million with an estimated present value of approximately $30 million based on the Company's currently identified lease portfolio. The Company will continue to refine its estimate, which is subject to change at the adoption date of ASC 842. Financial Instruments – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2020, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . |
Contract Assets and Contract 23
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Contract Assets and Contract Liabilities [Abstract] | |
Schedule Of Contract Assets and Contract Liabilities | The following table sets forth contract assets (mobilization and upgrade/modification costs) and contract liabilities (mobilization and upgrade/modification revenue) on the Condensed Consolidated Balance Sheets as of March 31, 2018 (in millions): Balance Sheet Classification March 31, 2018 December 31, 2017 Contract assets Current Prepaid expenses and other current assets $ 3.3 $ 2.8 Noncurrent Other assets — — $ 3.3 $ 2.8 Contract liabilities Current Deferred revenue $ 4.4 $ 1.1 Noncurrent Other liabilities 0.3 0.5 $ 4.7 $ 1.6 |
Schedule of Changes in Contract Assets | Presented in the table below are the changes in contract assets (mobilization and upgrade/modification costs) during the three months ended March 31, 2018 (in millions): March 31, 2018 Deferred mobilization and upgrade/modification costs Beginning balance $ 2.8 Plus: contractual additions 3.3 Less: amortization 2.8 Ending deferred mobilization and upgrade/modification costs $ 3.3 |
Schedule of Changes in Contract Liabilities | Presented in the table below are the changes in contract liabilities (mobilization and upgrade/modification revenue) during the three months ended March 31, 2018 (in millions): March 31, 2018 Deferred mobilization and upgrade/modification revenue Beginning balance $ 1.6 Plus: contractual additions 3.7 Less: amortization 0.6 Ending deferred mobilization and upgrade/modification revenue $ 4.7 |
Equity Method Investments and24
Equity Method Investments and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Revenue and other amounts recognized related to these agreements and transactions is as follows (in millions): Three months ended March 31, 2018 Secondment Revenue - Jack-ups $ 13.0 Transition Services Revenue - Unallocated 9.0 Sales of supplies - Jack-ups 1.3 Total Revenue received from ARO $ 23.3 Proceeds from equipment sales to ARO (a) $ 1.2 (a) A $0.6 million loss was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statement of Operations. $1.2 million is included in Receivables - trade and other for the $1.2 million purchase price proceeds. |
Equity Method Investments [Table Text Block] | The following summarizes the total assets and liabilities as reflected in the Company's Condensed Consolidated Balance Sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any amounts payable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO. March 31, 2018 December 31, 2017 Total assets $ 325.0 $ 319.5 Total liabilities 11.1 10.8 Maximum exposure to loss $ 313.9 $ 308.7 Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions): Three months ended March 31, 2018 Revenue $ 58.3 Direct operating costs (excluding items below) 33.4 Depreciation and amortization 16.6 Selling, general and administrative 6.4 Loss on disposals of property and equipment 0.1 Income from Operations 1.8 Interest expense (5.6 ) Benefit for income taxes (1.2 ) Net loss $ (2.6 ) Rowan's Equity in losses from ARO $ (1.3 ) March 31, 2018 December 31, 2017 Current assets $ 121.0 $ 108.6 Non-current assets 456.5 459.7 Total assets $ 577.5 $ 568.3 Current liabilities $ 43.4 $ 29.2 Non-current liabilities 542.7 545.1 Total liabilities $ 586.1 $ 574.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings per Share | A reconciliation of net income for diluted income per share is set forth below (in millions): Three months ended March 31, 2018 2017 Net income (loss) $ (112.3 ) $ 10.3 Income allocated to non-vested share awards — (0.9 ) Net income - adjusted for income allocated to non-vested share awards $ (112.3 ) $ 9.4 |
Schedule of Weighted Average Number of Shares [Table Text Block] | A reconciliation of shares for basic and diluted income per share is set forth below (in millions): Three months ended March 31, 2018 2017 Average common shares outstanding 126.5 125.7 Effect of dilutive securities - share-based compensation — 1.7 Average shares for diluted computations 126.5 127.4 |
Antidilutive Securities Excluded From Earnings per Share | Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions): Three months ended March 31, 2018 2017 Share options and appreciation rights 1.5 1.5 Nonvested restricted shares and restricted share units 4.6 1.4 Total potentially dilutive shares 6.1 2.9 |
Pension and Other Postretirem26
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Net Periodic Pension and Other Postemployment Benefit Costs | The components of net periodic pension cost were as follows (dollars in millions): Three months ended March 31, 2018 2017 Service cost $ 2.7 $ 4.0 Interest cost (1) 6.3 6.3 Expected return on plan assets (1) (9.4 ) (9.4 ) Amortization of net loss (1) 7.8 5.7 Amortization of prior service credit (1) (1.2 ) (1.2 ) Net periodic pension cost $ 6.2 $ 5.4 (1) Included in Other - net on the Condensed Consolidated Statements of Operations The components of net periodic cost of other postretirement benefits were as follows (dollars in millions): Three months ended March 31, 2018 2017 Service cost $ — $ — Interest cost (1) 0.1 0.2 Amortization of net loss (1) 0.2 0.2 Amortization of prior service credit (1) (3.3 ) (3.3 ) Total other postretirement benefit cost $ (3.0 ) $ (2.9 ) (1) Included in Other - net on the Condensed Consolidated Statements of Operations |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis are presented below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) March 31, 2018: Assets - cash equivalents $ 1,205.3 $ 1,205.3 $ — $ — Other assets (Egyptian Pounds) 2.1 2.1 — — Other assets (Angolan Kwanza) 3.4 3.4 — — December 31, 2017: Assets - cash equivalents $ 1,332.1 $ 1,332.1 $ — $ — Other assets (Egyptian Pounds) 2.2 2.2 — — Other assets (Angolan Kwanza) 4.3 4.3 — — |
Fair Value, Concentration of Risk [Table Text Block] | Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the three months ended March 31 are set forth below: Percentage of revenue from major customers: Three months ended March 31, Customer Segment 2018 2017 Saudi Aramco Jack-ups 35 % 25 % Anadarko Deepwater 24 % 13 % ARO Drilling (1) Jack-ups and Unallocated and other 11 % — % Lundin Jack-ups 10 % 7 % Repsol Jack-ups 1 % 15 % Cobalt International Deepwater — % 15 % (1) Includes Secondment and Transition Services revenue received from ARO (see Note 3 ). Percentage of receivables from major customers: Customer Segment March 31, 2018 December 31, 2017 Saudi Aramco Jack-ups 41 % 34 % Anadarko Deepwater 19 % 19 % ARO Drilling (1) Jack-ups and Unallocated and other 13 % 9 % Lundin Jack-ups 8 % 7 % Repsol Jack-ups 3 % 5 % Cobalt International Deepwater — % — % (1) Includes receivables related to the services provided to ARO (see Note 3 ). |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified out of Each Component of 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 (loss) for the period (in millions): Three months ended March 31, 2018 2017 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (8.0 ) $ (5.9 ) Amortization of prior service credit 4.5 4.5 Total before income taxes (3.5 ) (1.4 ) Income tax benefit 0.7 0.5 Total reclassifications for the period, net of income taxes $ (2.8 ) $ (0.9 ) |
Other Financial Statement Dis29
Other Financial Statement Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Financial Statement Disclosures [Abstract] | |
Components of Receivables - Trade and Other | The following table sets forth the components of Receivables - trade and other (in millions): March 31, 2018 December 31, 2017 Trade $ 187.8 $ 195.8 Income tax 8.0 8.0 Other 7.0 9.0 Total Receivables - trade and other $ 202.8 $ 212.8 |
Schedule of Accrued Liabilities | The following table sets forth the components of Accrued liabilities (in millions): March 31, 2018 December 31, 2017 Pension and other postretirement benefits $ 22.1 $ 27.0 Compensation and related employee costs 45.6 69.0 Interest 40.9 32.0 Income taxes 12.0 15.4 Other 19.1 15.7 Total Accrued liabilities $ 139.7 $ 159.1 |
Schedule of Long-term Debt | Long-term debt consisted of the following (in millions): March 31, 2018 December 31, 2017 7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate) $ 200.9 $ 200.9 4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate) 624.4 624.6 4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate) 396.0 395.9 7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate) 497.6 497.5 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate) 395.2 395.1 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396.4 396.3 Total carrying value $ 2,510.5 $ 2,510.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment results are presented below (in millions): Three months ended March 31, Deepwater Jack-ups ARO Unallocated and other Reportable segments total Eliminations and adjustments Consolidated 2018 Revenue $ 52.1 $ 150.1 $ 58.3 $ 9.0 $ 269.5 $ (58.3 ) $ 211.2 Operating expenses: Direct operating costs (excluding items below) 29.0 128.4 33.4 — 190.8 (33.4 ) 157.4 Depreciation and amortization 26.9 70.3 16.6 0.7 114.5 (16.6 ) 97.9 Selling, general and administrative — — 6.4 25.6 32.0 (6.4 ) 25.6 Other operating items - expense — 1.3 0.1 — 1.4 (0.1 ) 1.3 Equity in losses of unconsolidated subsidiary — — — — — (1.3 ) (1.3 ) Income (loss) from operations $ (3.8 ) $ (49.9 ) $ 1.8 $ (17.3 ) $ (69.2 ) $ (3.1 ) $ (72.3 ) 2017 (As adjusted) Revenue $ 160.7 $ 213.6 $ — $ — $ 374.3 $ — $ 374.3 Operating expenses: Direct operating costs (excluding items below) 44.9 126.4 — — 171.3 — 171.3 Depreciation and amortization 28.3 70.1 — 0.7 99.1 — 99.1 Selling, general and administrative — — — 24.2 24.2 — 24.2 Other operating items - expense — 3.4 — — 3.4 — 3.4 Income (loss) from operations $ 87.5 $ 13.7 $ — $ (24.9 ) $ 76.3 $ — $ 76.3 |
Revenue from External Customers by Products and Services [Table Text Block] | The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next. Three months ended March 31, 2018 2017 Deepwater Revenue: United States $ 52.1 $ 160.7 Total $ 52.1 $ 160.7 Three months ended March 31, 2018 2017 Jack-ups Revenue: Saudi Arabia $ 87.9 $ 94.2 Norway 38.8 51.2 Trinidad 11.6 41.4 United Kingdom 10.4 15.5 United States 1.4 10.8 Other — 0.5 Total $ 150.1 $ 213.6 Three months ended March 31, 2018 2017 Unallocated and Other Revenue: Saudi Arabia $ 9.0 $ — Total $ 9.0 $ — |
Guarantees of Registered Secu31
Guarantees of Registered Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Income Statements | Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 1.7 $ 211.3 $ (1.8 ) $ 211.2 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 0.2 157.3 (0.1 ) 157.4 Depreciation and amortization — — 97.9 — 97.9 Selling, general and administrative 7.4 0.3 19.6 (1.7 ) 25.6 (Gain) loss on disposals of property and equipment — (0.1 ) 1.4 — 1.3 Total costs and expenses 7.4 0.4 276.2 (1.8 ) 282.2 Equity in losses of unconsolidated subsidiary — — (1.3 ) — (1.3 ) INCOME (LOSS) FROM OPERATIONS (7.4 ) 1.3 (66.2 ) — (72.3 ) OTHER INCOME (EXPENSE): Interest expense — (38.5 ) (0.5 ) 0.5 (38.5 ) Interest income — 1.1 6.3 (0.5 ) 6.9 Other - net 4.9 (5.4 ) (1.7 ) — (2.2 ) Total other income (expense), net 4.9 (42.8 ) 4.1 — (33.8 ) LOSS BEFORE INCOME TAXES (2.5 ) (41.5 ) (62.1 ) — (106.1 ) Provision for income taxes — 3.4 7.2 (4.4 ) 6.2 Equity in earnings (losses) of subsidiaries, net of tax (109.8 ) 31.7 — 78.1 — NET LOSS $ (112.3 ) $ (13.2 ) $ (69.3 ) $ 82.5 $ (112.3 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 14.5 $ 374.5 $ (14.7 ) $ 374.3 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 5.3 179.6 (13.6 ) 171.3 Depreciation and amortization — 4.7 94.4 — 99.1 Selling, general and administrative 5.9 (2.1 ) 21.5 (1.1 ) 24.2 Loss on disposals of property and equipment — 0.2 3.2 — 3.4 Total costs and expenses 5.9 — 8.1 — 298.7 — (14.7 ) 298.0 INCOME (LOSS) FROM OPERATIONS (5.9 ) 6.4 75.8 — 76.3 OTHER INCOME (EXPENSE): Interest expense — (39.6 ) (0.1 ) 0.1 (39.6 ) Interest income — 0.7 1.4 (0.1 ) 2.0 Loss on extinguishment of debt — (0.2 ) — — (0.2 ) Other - net 5.1 (4.8 ) 1.2 — 1.5 Total other income (expense), net 5.1 (43.9 ) 2.5 — (36.3 ) INCOME (LOSS) BEFORE INCOME TAXES (0.8 ) (37.5 ) 78.3 — 40.0 Provision (benefit) for income taxes — (10.5 ) 39.7 0.5 29.7 Equity in earnings of subsidiaries, net of tax 11.1 17.7 — (28.8 ) — NET INCOME (LOSS) $ 10.3 $ (9.3 ) $ 38.6 $ (29.3 ) $ 10.3 |
Statements of Comprehensive Income (Loss) | Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET LOSS $ (112.3 ) $ (13.2 ) $ (69.3 ) $ 82.5 $ (112.3 ) OTHER COMPREHENSIVE INCOME: Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes 2.8 2.8 — (2.8 ) 2.8 COMPREHENSIVE LOSS $ (109.5 ) $ (10.4 ) $ (69.3 ) $ 79.7 $ (109.5 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 10.3 $ (9.3 ) $ 38.6 $ (29.3 ) $ 10.3 OTHER COMPREHENSIVE INCOME: Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes 0.9 0.9 — (0.9 ) 0.9 COMPREHENSIVE INCOME (LOSS) $ 11.2 $ (8.4 ) $ 38.6 $ (30.2 ) $ 11.2 |
Condensed Consolidating Balance Sheets | Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 161.0 $ 1,052.9 $ — $ 1,214.1 Receivables - trade and other — 0.8 202.0 — 202.8 Prepaid expenses and other current assets 0.2 8.1 7.0 — 15.3 Total current assets 0.4 169.9 1,261.9 — 1,432.2 Property and equipment - gross — 240.1 8,689.3 — 8,929.4 Less accumulated depreciation and amortization — 123.8 2,251.6 — 2,375.4 Property and equipment - net — 116.3 6,437.7 — 6,554.0 Investments in consolidated subsidiaries 5,303.9 6,293.3 — (11,597.2 ) — Due from affiliates 0.2 680.7 9.5 (690.4 ) — Long-term note receivable from unconsolidated subsidiary — — 270.0 — 270.0 Investment in unconsolidated subsidiary — — 29.6 — 29.6 Other assets — 4.5 6.5 31.2 42.2 $ 5,304.5 $ 7,264.7 $ 8,015.2 $ (12,256.4 ) $ 8,328.0 CURRENT LIABILITIES: Accounts payable - trade $ 0.4 $ 15.5 $ 77.5 $ — $ 93.4 Deferred revenue — — 4.4 — 4.4 Accrued liabilities — 87.5 52.2 — 139.7 Total current liabilities 0.4 103.0 134.1 — 237.5 Long-term debt — 2,510.5 — — 2,510.5 Due to affiliates 17.8 7.7 664.9 (690.4 ) — Other liabilities 3.1 253.8 29.1 — 286.0 Deferred income taxes - net — 186.8 10.8 (186.8 ) 10.8 Shareholders' equity 5,283.2 4,202.9 7,176.3 (11,379.2 ) 5,283.2 $ 5,304.5 $ 7,264.7 $ 8,015.2 $ (12,256.4 ) $ 8,328.0 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2017 (In millions) (Audited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Receivables - trade and other — 1.2 211.6 — 212.8 Prepaid expenses and other current assets 0.3 10.7 4.5 — 15.5 Total current assets 0.5 218.2 1,341.7 — 1,560.4 Property and equipment - gross — 241.9 8,592.0 — 8,833.9 Less accumulated depreciation and amortization — 121.4 2,159.8 — 2,281.2 Property and equipment - net — 120.5 6,432.2 — 6,552.7 Investments in consolidated subsidiaries 5,401.1 6,253.5 — (11,654.6 ) — Due from affiliates 0.2 680.0 11.5 (691.7 ) — Long-term note receivable from unconsolidated subsidiary — — 270.2 — 270.2 Investment in unconsolidated subsidiary — — 30.9 — 30.9 Other assets — 5.2 7.6 31.3 44.1 $ 5,401.8 $ 7,277.4 $ 8,094.1 $ (12,315.0 ) $ 8,458.3 CURRENT LIABILITIES: Accounts payable - trade $ 0.7 $ 12.9 $ 83.6 $ — $ 97.2 Deferred revenue — — 1.1 — 1.1 Accrued liabilities 0.1 95.6 63.4 — 159.1 Total current liabilities 0.8 108.5 148.1 — 257.4 Long-term debt — 2,510.3 — — 2,510.3 Due to affiliates 11.2 11.4 669.1 (691.7 ) — Other liabilities 3.8 261.2 28.6 — 293.6 Deferred income taxes - net (0.1 ) 182.7 10.9 (182.6 ) 10.9 Shareholders' equity 5,386.1 4,203.3 7,237.4 (11,440.7 ) 5,386.1 $ 5,401.8 $ 7,277.4 $ 8,094.1 $ (12,315.0 ) $ 8,458.3 |
Consolidating Statements of Cash Flows | Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Three months ended March 31, 2018 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3.4 ) $ (41.6 ) $ 33.9 $ — $ (11.1 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (3.4 ) (32.0 ) — (35.4 ) Purchase of rigs — — (70.8 ) — (70.8 ) Proceeds from disposals of property and equipment — 0.1 1.2 — 1.3 Repayments of note receivable from unconsolidated subsidiary — — 1.3 — 1.3 Net cash used in investing activities — (3.3 ) (100.3 ) — (103.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 6.7 (0.4 ) (6.3 ) — — Shares repurchased for tax withholdings on vesting of restricted share units (3.3 ) — — — (3.3 ) Net cash provided by (used in) financing activities 3.4 (0.4 ) (6.3 ) — (3.3 ) DECREASE IN CASH AND CASH EQUIVALENTS — (45.3 ) (72.7 ) — (118.0 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 0.2 206.3 1,125.6 — 1,332.1 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 0.2 $ 161.0 $ 1,052.9 $ — $ 1,214.1 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Three months ended March 31, 2017 (In millions) (Unaudited) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1.7 ) $ 73.8 $ 9.7 $ — $ 81.8 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (9.7 ) (21.2 ) — (30.9 ) Proceeds from disposals of property and equipment — — 0.1 — 0.1 Net cash used in investing activities — (9.7 ) (21.1 ) — (30.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 7.2 (166.0 ) 158.8 — — Reductions of long-term debt — (128.0 ) — — (128.0 ) Shares repurchased for tax withholdings on vesting of restricted share units (5.3 ) — — — (5.3 ) Net cash provided by (used in) financing activities 1.9 (294.0 ) 158.8 — (133.3 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0.2 (229.9 ) 147.4 — (82.3 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3.7 532.0 719.8 — 1,255.5 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3.9 $ 302.1 $ 867.2 $ — $ 1,173.2 |
Nature of Operations and Basi32
Nature of Operations and Basis of Presentation (Details) $ in Millions | 3 Months Ended | 10 Months Ended | |
Mar. 31, 2018USD ($)drilling_unitsegment | Mar. 31, 2017USD ($) | Oct. 16, 2017segment | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Number of Operating Segments | segment | 3 | 2 | |
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit | 23 | ||
Number of ultra-deepwater drillships | drilling_unit | 4 | ||
Cumulative effect of new accounting principle in period of adoption | $ 5.5 | $ 206.6 | |
Other | 6 | 0.2 | |
Retained earnings [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 51.1 | $ 206.6 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Other | 5.5 | ||
Accounting Standards Update 2014-09 [Member] | Retained earnings [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 5.5 | ||
Accounting Standards Update 2016-02 [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Undiscounted future minimum lease commitments | 40 | ||
Estimated present value of future lease commitments | $ 30 | ||
Saudi Arabia Joint Venture [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit | 5 | ||
Saudi Arabia Joint Venture [Member] | Saudi Aramco [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Parent Company [Member] | Saudi Arabia Joint Venture [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Accounting Standards Update 2018-02 [Member] | Retained earnings [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 45.6 |
Contract Assets and Contract 33
Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs [Abstract] | |||
Contract assets | $ 2.8 | $ 3.3 | $ 2.8 |
Deferred Revenue [Abstract] | |||
Contract liabilities, current | 4.4 | 1.1 | |
Contract liabilities | 1.6 | 4.7 | 1.6 |
Movement in Deferred costs [Rollforward] | |||
Beginning balance | 2.8 | ||
Plus: contractual additions | 3.3 | ||
Less: amortization | 2.8 | ||
Ending deferred mobilization and upgrade/modification costs | 3.3 | ||
Movement in Deferred Revenue [Roll Forward] | |||
Beginning balance | 1.6 | ||
Plus: contractual additions | 3.7 | ||
Less: amortization | 0.6 | ||
Ending deferred mobilization and upgrade/modification revenue | $ 4.7 | ||
Deferred Revenue [Member] | |||
Deferred Revenue [Abstract] | |||
Contract liabilities, current | 4.4 | 1.1 | |
Prepaid Expenses and Other Current Assets [Member] | |||
Deferred Costs [Abstract] | |||
Contract assets, current | 3.3 | 2.8 | |
Other Noncurrent Liabilities [Member] | |||
Deferred Revenue [Abstract] | |||
Contract liabilities, noncurrent | 0.3 | 0.5 | |
Other Assets [Member] | |||
Deferred Costs [Abstract] | |||
Contract assets, non-current | $ 0 | $ 0 |
Equity Method Investments and34
Equity Method Investments and Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Revenue | $ 58.3 | ||
Revenue from Related Parties | 23.3 | ||
Contribution to joint venture | 357.7 | ||
Equity Method Investment, Summarized Financial Information, Current Assets | 121 | $ 108.6 | |
Equity Method Investment, Summarized Financial Information, Cost of Sales | 33.4 | ||
Equity Method Investment, Summarized Financial Information, Depreciation and Amortization | 16.6 | ||
Equity Method Investment, Summarized Financial Information, Selling, general and administrative expense | 6.4 | ||
Equity Method Investment, Summarized Financial Information, Gain (Loss) on disposal of property, plant and equipment | 0.1 | ||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 1.8 | ||
Equity Method Investment, Summarized Financial Information, Interest Expense | (5.6) | ||
Equity Method Investment, Summarized Financial Information, Income Tax Expense (benefit) | (1.2) | ||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | (2.6) | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 456.5 | 459.7 | |
Equity Method Investment, Summarized Financial Information, Assets | 577.5 | 568.3 | |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 43.4 | 29.2 | |
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 542.7 | 545.1 | |
Equity Method Investment, Summarized Financial Information, Liabilities | 586.1 | 574.3 | |
Due from Joint Venture, Initial Amount | 357.7 | ||
Due from Joint Venture, Total | 270 | 271.3 | |
Due from Joint Ventures, Noncurrent | 270 | 270.2 | |
Gain (Loss) on Disposition of Property Plant Equipment | 1.3 | $ 3.4 | |
Due from Joint Ventures, Current | 1.1 | ||
Interest income | 6.9 | $ 2 | |
Saudi Arabia Joint Venture [Member] | Parent Company [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 325 | 319.5 | |
Accounts Receivable, Related Parties | $ 23.5 | 17.3 | |
Equity Method Investment, Ownership Percentage | 50.00% | ||
Equity Method Investment Summarized Financial Information, Equity | $ (1.3) | ||
Interest income | 2.8 | ||
Accounts Payable, Related Parties | 11.1 | 10.8 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 11.1 | 10.8 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 313.9 | $ 308.7 | |
Prepaid Expenses and Other Current Assets [Member] | Saudi Arabia Joint Venture [Member] | Parent Company [Member] | |||
Variable Interest Entity [Line Items] | |||
Due from Joint Ventures, Current | 1.9 | ||
Rig Management Services [Member] | |||
Variable Interest Entity [Line Items] | |||
Costs and Expenses, Related Party | 10.6 | ||
Secondment Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Revenue from Related Parties | 13 | ||
Transition Services Revenue [Member] | |||
Variable Interest Entity [Line Items] | |||
Revenue from Related Parties | 9 | ||
Sales of Supplies [Member] | |||
Variable Interest Entity [Line Items] | |||
Revenue from Related Parties | 1.3 | ||
Sale of Equipment [Member] | |||
Variable Interest Entity [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment | 0.6 | ||
Related Party Transaction, Due from (to) Related Party, Noncurrent | 1.2 | ||
Sale of Equipment [Member] | Accounts Receivable [Member] | |||
Variable Interest Entity [Line Items] | |||
Related Party Transaction, Due from (to) Related Party, Noncurrent | 1.2 | ||
Purchase of Supplies from Joint Venture [Member] | |||
Variable Interest Entity [Line Items] | |||
Costs and Expenses, Related Party | $ 1.4 | ||
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Variable Interest Entity [Line Items] | |||
Loans Receivable, Basis Spread on Variable Rate | 2.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Average common shares outstanding (in shares) | 126.5 | 125.7 |
Effect of dilutive securities - share-based compensation (in shares) | 0 | 1.7 |
Average shares for diluted computations (in shares) | 126.5 | 127.4 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (112.3) | $ 10.3 |
Potentially dilutive shares (in shares) | 6.1 | 2.9 |
Other Preferred Stock Dividends and Adjustments | $ 0 | $ (0.9) |
Income (Loss) From Continuing Operations Available To Shareholders | $ (112.3) | $ 9.4 |
Share Options and Appreciation Rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 1.5 | 1.5 |
Novested Restricted Shares and Restricted Share Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares (in shares) | 4.6 | 1.4 |
Pension and Other Postretirem36
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Contribution to pension and other postemployment benefit plans | $ 6.1 | |
Future contributions to pension and other postemployment benefit plans | 21.2 | |
Defined Benefit Pension [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 2.7 | $ 4 |
Interest cost (1) | 6.3 | 6.3 |
Expected return on plan assets (1) | (9.4) | (9.4) |
Amortization of net loss (1) | 7.8 | 5.7 |
Amortization of prior service credit (1) | (1.2) | (1.2) |
Total net pension cost and other postretirement benefit cost | 6.2 | 5.4 |
Other Postretirement Benefit [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 0 | 0 |
Interest cost (1) | 0.1 | 0.2 |
Amortization of net loss (1) | 0.2 | 0.2 |
Amortization of prior service credit (1) | (3.3) | (3.3) |
Total net pension cost and other postretirement benefit cost | $ (3) | $ (2.9) |
Commitments and Contingent Li37
Commitments and Contingent Liabilities (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)drilling_unit | Dec. 31, 2017USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
IRS proposed unfavorable tax adjustments | $ 85 | |
Gross unrecognized tax benefits | 103 | $ 102 |
Tax impact of net unrecognized tax benefits, if reversed | 41 | |
Letters of credit issued | 7.3 | |
Loss Contingency, Estimate of Possible Loss | 45 | |
Revolving Credit Facility [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Letters of credit issued | $ 5 | |
Saudi Arabia Joint Venture [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Period Of Joint Venture Funding Of Drilling Rigs | 10 years | |
Saudi Arabia Joint Venture [Member] | Maximum [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Number Of Drilling Rigs To Be Purchased By Joint Venture | drilling_unit | 20 | |
Number Of Drilling Rigs To Be Purchased By Each Partner in a 12 month period | drilling_unit | 3 | |
Contingent Funding Obligation To Equity Method Investment | $ 1,250 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 27, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period for remaining recognition of compensation expense | 1 year 9 months 18 days | ||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 62.7 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated liabilities for share-based compensation awards classified as short-term | 3.5 | $ 11.5 | |
Estimated liabilities for share-based compensation awards classified as long-term | $ 8.4 | $ 10.5 | |
February 27, 2018 Grant [Member] | Restricted Share Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based awards, grant-date fair value | $ 16.6 | ||
Weighted-average period for remaining recognition of compensation expense | 2 years 8 months 12 days | ||
Awards vesting period | 3 years | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Target value of P-Units (in dollars per unit) | $ 100 | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected payout on P-Units (in dollars per unit) | $ 0 | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Expected payout on P-Units (in dollars per unit) | $ 200 | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | One-Year Period Ending December 31, 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance unit value percentage determined on an annual performance | 25.00% | ||
Period for value determination | 1 year | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | One-Year Period Ending December 31, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance unit value percentage determined on an annual performance | 25.00% | ||
Period for value determination | 1 year | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | One-Year Period Ending December 31, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance unit value percentage determined on an annual performance | 25.00% | ||
Period for value determination | 1 year | ||
February 27, 2018 Grant [Member] | Performance Shares [Member] | Three-Year Period Ending December 31, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for value determination | 3 years | ||
Performance unit value percentage determined on total vesting period performance | 25.00% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Recurring Basis [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Egypt, Pounds | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other Assets | $ 2.1 | $ 2.2 |
Angola, Kwanza | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other Assets | 3.4 | 4.3 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Long-term Debt, Fair Value | $ 2,134 | $ 2,262 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | $ 1,205.3 | $ 1,332.1 |
Egypt, Pounds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 2.1 | 2.2 |
Other assets | 2.1 | 2.2 |
Angola, Kwanza | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 3.4 | 4.3 |
Other assets | 3.4 | 4.3 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 1,205.3 | 1,332.1 |
Fair Value, Inputs, Level 1 [Member] | Egypt, Pounds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 2.1 | 2.2 |
Fair Value, Inputs, Level 1 [Member] | Angola, Kwanza | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 3.4 | 4.3 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Egypt, Pounds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Angola, Kwanza | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets - cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Egypt, Pounds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Angola, Kwanza | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets | $ 0 | $ 0 |
Fair Value Measurements - Other
Fair Value Measurements - Other Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Long-term Debt | $ 2,510.5 | $ 2,510.3 |
Fair Value Measurements - Conce
Fair Value Measurements - Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | |
Deepwater Segment [Member] | Anadarko [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 19.00% | |
Deepwater Segment [Member] | Anadarko [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 24.00% | 13.00% | |
Deepwater Segment [Member] | Cobalt International [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Deepwater Segment [Member] | Cobalt International [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 15.00% | |
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 9.00% | |
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 0.00% | |
Jack-ups [Member] | Saudi Aramco [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 41.00% | 34.00% | |
Jack-ups [Member] | Saudi Aramco [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 35.00% | 25.00% | |
Jack-ups [Member] | Lundin [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.00% | 7.00% | |
Jack-ups [Member] | Lundin [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 7.00% | |
Jack-ups [Member] | Repsol [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 3.00% | 5.00% | |
Jack-ups [Member] | Repsol [Member] | Sales Revenue, Services, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 1.00% | 15.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Amortization of Net Loss [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | $ (8) | $ (5.9) |
Amortization of Prior Service Credit [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | 4.5 | 4.5 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | ||
Total before income taxes | (3.5) | (1.4) |
Income tax benefit | 0.7 | 0.5 |
Total reclassifications for the period, net of income taxes | $ (2.8) | $ (0.9) |
Other Financial Statement Dis44
Other Financial Statement Disclosures - Components of Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Financial Statement Disclosures [Abstract] | ||
Trade | $ 187.8 | $ 195.8 |
Income tax | 8 | 8 |
Other | 7 | 9 |
Total receivables - trade and other | $ 202.8 | $ 212.8 |
Other Financial Statement Dis45
Other Financial Statement Disclosures - Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Financial Statement Disclosures [Abstract] | ||
Pension and other postretirement benefits | $ 22.1 | $ 27 |
Compensation and related employee costs | 45.6 | 69 |
Interest | 40.9 | 32 |
Income taxes | 12 | 15.4 |
Other | 19.1 | 15.7 |
Total accrued liabilities | $ 139.7 | $ 159.1 |
Other Financial Statement Dis46
Other Financial Statement Disclosures - Long Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Jan. 09, 2017 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 2,510.5 | $ 2,510.3 | |
Subject Notes [Member] | 5% Senior Notes, due September 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 92.1 | ||
Subject Notes [Member] | 7.875% Senior Notes, due August 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 200.9 | $ 200.9 | |
Stated rate | 7.875% | 7.875% | |
Principal amount | $ 201.4 | $ 201.4 | |
Effective rate | 8.00% | 8.00% | |
Subject Notes [Member] | 4.875% Senior Notes, due June 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 624.4 | $ 624.6 | |
Stated rate | 4.875% | 4.875% | |
Principal amount | $ 620.8 | $ 620.8 | |
Effective rate | 4.70% | 4.70% | |
Subject Notes [Member] | 4.75% Senior Notes, due January 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 396 | $ 395.9 | |
Stated rate | 4.75% | 4.75% | |
Principal amount | $ 398.1 | $ 398.1 | |
Effective rate | 4.80% | 4.80% | |
Subject Notes [Member] | 7.375% Senior Note Payable Due June 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 497.6 | $ 497.5 | |
Stated rate | 7.375% | 7.375% | |
Principal amount | $ 500 | $ 500 | |
Effective rate | 7.40% | 7.40% | |
Subject Notes [Member] | 5.4% Senior Notes due, December 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 395.2 | $ 395.1 | |
Stated rate | 5.40% | 5.40% | |
Principal amount | $ 400 | $ 400 | |
Effective rate | 5.40% | 5.40% | |
Subject Notes [Member] | 5.85% Senior Notes, due January 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 396.4 | $ 396.3 | |
Stated rate | 5.85% | 5.85% | |
Principal amount | $ 400 | $ 400 | |
Effective rate | 5.90% | 5.90% |
Other Financial Statement Dis47
Other Financial Statement Disclosures - Long Term Debt, Narrative (Details) - USD ($) $ in Millions | Feb. 08, 2017 | Jan. 03, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jan. 09, 2017 |
Debt Instrument [Line Items] | |||||||
Letters of credit issued | $ 7.3 | ||||||
Minimum percentage of shareholders equity | 60.00% | ||||||
Gain (loss) on extinguishment of debt | $ 0 | $ (0.2) | |||||
Subject Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Early repayment of debt | $ 32.8 | $ 490.5 | |||||
Aggregate amount of debt paid | 34.6 | 463.9 | |||||
Gain (loss) on extinguishment of debt | (33.6) | ||||||
Payments of Debt Extinguishment Costs | 5.9 | ||||||
Debt instrument, face amount of tender offer | 750 | ||||||
Debt Instrument Redemption Amount as Percentage of Principal | 100.00% | ||||||
Subject Notes [Member] | 5% Senior Notes, due September 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Early repayment of debt | $ 94 | ||||||
Aggregate amount of debt paid | 0.1 | 265.5 | |||||
Principal amount | $ 92.1 | ||||||
Subject Notes [Member] | 7.875% Senior Notes, due August 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate amount of debt paid | 0.9 | 186.7 | |||||
Stated interest rate percentage | 7.875% | 7.875% | |||||
Principal amount | $ 201.4 | $ 201.4 | |||||
Subject Notes [Member] | 4.875% Senior Notes, due June 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate amount of debt paid | $ 33.6 | 9.8 | |||||
Stated interest rate percentage | 4.875% | 4.875% | |||||
Principal amount | $ 620.8 | $ 620.8 | |||||
Subject Notes [Member] | 4.75% Senior Notes, due January 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate amount of debt paid | $ 1.9 | ||||||
Stated interest rate percentage | 4.75% | 4.75% | |||||
Principal amount | $ 398.1 | $ 398.1 | |||||
Subject Notes [Member] | 7.375% Senior Note Payable Due June 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate percentage | 7.375% | 7.375% | |||||
Principal amount | $ 500 | $ 500 | |||||
Debt Instrument Redemption Amount as Percentage of Principal | 101.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amounts outstanding under credit facility | $ 0 | ||||||
Letters of credit issued | 5 | ||||||
Remaining availability under credit facility | 1,495 | ||||||
Period 1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Availability under Revolving Credit Facility | 1,500 | ||||||
Period 2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Availability under Revolving Credit Facility | 1,440 | ||||||
Period 3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Availability under Revolving Credit Facility | $ 1,290 | ||||||
Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | ||||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Other Financial Statement Dis48
Other Financial Statement Disclosures - Narrative (Details) $ in Millions | Jan. 05, 2018USD ($)drilling_unit | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) |
Supplemental Cash Flow Information [Line Items] | ||||
Number of Rigs Purchased at Auction | drilling_unit | 2 | |||
Supplemental Cash Flow Information | ||||
Accrued capital expenditures | $ 17 | $ 15.9 | ||
Income Taxes | ||||
Provision for income taxes | $ 6.2 | $ 29.7 | ||
Effective tax rate | (5.90%) | 74.20% | ||
Increase (decrease) in income tax expense as compared to prior year periods | $ 23.5 | |||
P-59 [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 38.5 | |||
P-60 [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 38.5 | |||
P-59 and P60 Rigs [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 77 | |||
Security Deposit | $ 7.7 | |||
Purchase Price of Rigs Won at Auction less Deposit | 69.3 | |||
Transaction Costs | $ 1.5 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 10 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Oct. 16, 2017segment | |
Segment Reporting [Abstract] | |||
Number of Operating Segments | segment | 3 | 2 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 211.2 | $ 374.3 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 157.4 | 171.3 | |
Depreciation and amortization | 97.9 | 99.1 | |
Selling, general and administrative | 25.6 | 24.2 | |
Other operating items | 1.3 | 3.4 | |
Income (Loss) from Equity Method Investments | (1.3) | 0 | |
INCOME (LOSS) FROM OPERATIONS | (72.3) | 76.3 | |
Deepwater Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 52.1 | 160.7 | |
Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 150.1 | 213.6 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 269.5 | 374.3 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 190.8 | 171.3 | |
Depreciation and amortization | 114.5 | 99.1 | |
Selling, general and administrative | 32 | 24.2 | |
Other operating items | 1.4 | 3.4 | |
Income (Loss) from Equity Method Investments | 0 | ||
INCOME (LOSS) FROM OPERATIONS | (69.2) | 76.3 | |
Operating Segments [Member] | Deepwater Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 52.1 | 160.7 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 29 | 44.9 | |
Depreciation and amortization | 26.9 | 28.3 | |
Selling, general and administrative | 0 | 0 | |
Other operating items | 0 | 0 | |
Income (Loss) from Equity Method Investments | 0 | ||
INCOME (LOSS) FROM OPERATIONS | (3.8) | 87.5 | |
Operating Segments [Member] | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 150.1 | 213.6 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 128.4 | 126.4 | |
Depreciation and amortization | 70.3 | 70.1 | |
Selling, general and administrative | 0 | 0 | |
Other operating items | 1.3 | 3.4 | |
Income (Loss) from Equity Method Investments | 0 | ||
INCOME (LOSS) FROM OPERATIONS | (49.9) | 13.7 | |
Operating Segments [Member] | ARO Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 58.3 | 0 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 33.4 | 0 | |
Depreciation and amortization | 16.6 | 0 | |
Selling, general and administrative | 6.4 | 0 | |
Other operating items | 0.1 | 0 | |
Income (Loss) from Equity Method Investments | 0 | ||
INCOME (LOSS) FROM OPERATIONS | 1.8 | 0 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (58.3) | 0 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | (33.4) | 0 | |
Depreciation and amortization | (16.6) | 0 | |
Selling, general and administrative | (6.4) | 0 | |
Other operating items | (0.1) | 0 | |
Income (Loss) from Equity Method Investments | (1.3) | ||
INCOME (LOSS) FROM OPERATIONS | (3.1) | 0 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9 | 0 | |
Operating expenses: | |||
Direct operating costs (excluding items below) | 0 | 0 | |
Depreciation and amortization | 0.7 | 0.7 | |
Selling, general and administrative | 25.6 | 24.2 | |
Other operating items | 0 | 0 | |
Income (Loss) from Equity Method Investments | 0 | ||
INCOME (LOSS) FROM OPERATIONS | $ (17.3) | (24.9) | |
Parent Company [Member] | Saudi Arabia Joint Venture [Member] | |||
Operating expenses: | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
SAUDI ARABIA | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 87.9 | 94.2 | |
SAUDI ARABIA | Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9 | 0 | |
UNITED STATES | Deepwater Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 52.1 | 160.7 | |
UNITED STATES | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1.4 | 10.8 | |
NORWAY | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 38.8 | 51.2 | |
TRINIDAD AND TOBAGO | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 11.6 | 41.4 | |
UNITED KINGDOM | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10.4 | 15.5 | |
Other Countries [Member] | Jack-ups [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0.5 | |
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | |||
Operating expenses: | |||
Equity Method Investment, Ownership Percentage | 50.00% |
Guarantees of Registered Secu50
Guarantees of Registered Securities - Condensed Consolidating Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Repayments of Long-term Debt | $ 0 | $ 128 | ||
Condensed Consolidating Income Statements | ||||
REVENUE | 211.2 | 374.3 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 157.4 | 171.3 | ||
Depreciation and amortization | 97.9 | 99.1 | ||
Selling, general and administrative | 25.6 | 24.2 | ||
Loss on disposals of property and equipment | 1.3 | 3.4 | ||
Total costs and expenses | 282.2 | 298 | ||
Income (Loss) from Equity Method Investments | (1.3) | 0 | ||
INCOME (LOSS) FROM OPERATIONS | (72.3) | 76.3 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense | (38.5) | (39.6) | ||
Interest income | 6.9 | 2 | ||
Gain (loss) on extinguishment of debt | 0 | (0.2) | ||
Other - net | (2.2) | 1.5 | ||
Total other (expense) - net | (33.8) | (36.3) | ||
INCOME (LOSS) BEFORE INCOME TAXES | (106.1) | 40 | ||
Provision for income taxes | 6.2 | 29.7 | ||
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | ||
NET INCOME (LOSS) | (112.3) | 10.3 | ||
Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | (112.3) | 10.3 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes | 2.8 | 0.9 | ||
COMPREHENSIVE INCOME (LOSS) | (109.5) | 11.2 | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 1,332.1 | 1,255.5 | $ 1,214.1 | $ 1,332.1 |
Receivables - trade and other | 202.8 | 212.8 | ||
Prepaid expenses and other current assets | 15.3 | 15.5 | ||
Total current assets | 1,432.2 | 1,560.4 | ||
Property and equipment - gross | 8,929.4 | 8,833.9 | ||
Less accumulated depreciation and amortization | 2,375.4 | 2,281.2 | ||
Property and equipment - net | 6,554 | 6,552.7 | ||
Investment in Consolidated Subsidiary | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Due from Joint Ventures, Noncurrent | 270 | 270.2 | ||
Investment in unconsolidated subsidiary | 29.6 | 30.9 | ||
Other assets | 42.2 | 44.1 | ||
TOTAL ASSETS | 8,328 | 8,458.3 | ||
CURRENT LIABILITIES: | ||||
Accounts payable - trade | 93.4 | 97.2 | ||
Deferred revenues | 4.4 | 1.1 | ||
Accrued liabilities | 139.7 | 159.1 | ||
Total current liabilities | 237.5 | 257.4 | ||
Long-term debt | 2,510.5 | 2,510.3 | ||
Due to affiliates | 0 | 0 | ||
Other liabilities | 286 | 293.6 | ||
Deferred income taxes - net | 10.8 | 10.9 | ||
Shareholders' equity | 5,283.2 | 5,386.1 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,328 | 8,458.3 | ||
Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (11.1) | 81.8 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (35.4) | (30.9) | ||
Proceeds from (Payments for) Other Financing Activities | (70.8) | 0 | ||
Proceeds from disposals of property and equipment | 1.3 | 0.1 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 1.3 | 0 | ||
Net cash used in investing activities | (103.6) | (30.8) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | 0 | 0 | ||
Proceeds from exercise of share options | (3.3) | (5.3) | ||
Net cash used in financing activities | (3.3) | (133.3) | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (118) | (82.3) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,332.1 | 1,255.5 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,214.1 | 1,173.2 | ||
Consolidating adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Repayments of Long-term Debt | 0 | |||
Condensed Consolidating Income Statements | ||||
REVENUE | (1.8) | (14.7) | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | (0.1) | (13.6) | ||
Depreciation and amortization | 0 | 0 | ||
Selling, general and administrative | (1.7) | (1.1) | ||
Loss on disposals of property and equipment | 0 | 0 | ||
Total costs and expenses | (1.8) | (14.7) | ||
Income (Loss) from Equity Method Investments | 0 | |||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense | 0.5 | 0.1 | ||
Interest income | (0.5) | (0.1) | ||
Gain (loss) on extinguishment of debt | 0 | |||
Other - net | 0 | 0 | ||
Total other (expense) - net | 0 | 0 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | ||
Provision for income taxes | (4.4) | 0.5 | ||
Equity in earnings (losses) of subsidiaries, net of tax | 78.1 | (28.8) | ||
NET INCOME (LOSS) | 82.5 | (29.3) | ||
Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | 82.5 | (29.3) | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes | (2.8) | (0.9) | ||
COMPREHENSIVE INCOME (LOSS) | 79.7 | (30.2) | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables - trade and other | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment - gross | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Property and equipment - net | 0 | 0 | ||
Investment in Consolidated Subsidiary | (11,597.2) | (11,654.6) | ||
Due from affiliates | (690.4) | (691.7) | ||
Due from Joint Ventures, Noncurrent | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Other assets | 31.2 | 31.3 | ||
TOTAL ASSETS | (12,256.4) | (12,315) | ||
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 | (690.4) | (691.7) | ||
Other liabilities | 0 | 0 | ||
Deferred income taxes - net | (186.8) | (182.6) | ||
Shareholders' equity | (11,379.2) | (11,440.7) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (12,256.4) | (12,315) | ||
Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | |||
Proceeds from disposals of property and equipment | 0 | 0 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 0 | |||
Net cash used in investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | 0 | 0 | ||
Proceeds from exercise of share options | 0 | 0 | ||
Net cash used in financing activities | 0 | 0 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | ||
Rowan plc (Parent) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Repayments of Long-term Debt | 0 | |||
Condensed Consolidating Income Statements | ||||
REVENUE | 0 | 0 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Selling, general and administrative | 7.4 | 5.9 | ||
Loss on disposals of property and equipment | 0 | 0 | ||
Total costs and expenses | 7.4 | 5.9 | ||
Income (Loss) from Equity Method Investments | 0 | |||
INCOME (LOSS) FROM OPERATIONS | (7.4) | (5.9) | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense | 0 | 0 | ||
Interest income | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Other - net | 4.9 | 5.1 | ||
Total other (expense) - net | 4.9 | 5.1 | ||
INCOME (LOSS) BEFORE INCOME TAXES | (2.5) | (0.8) | ||
Provision for income taxes | 0 | 0 | ||
Equity in earnings (losses) of subsidiaries, net of tax | (109.8) | 11.1 | ||
NET INCOME (LOSS) | (112.3) | 10.3 | ||
Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | (112.3) | 10.3 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes | 2.8 | 0.9 | ||
COMPREHENSIVE INCOME (LOSS) | (109.5) | 11.2 | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 0.2 | 3.7 | 0.2 | 0.2 |
Receivables - trade and other | 0 | 0 | ||
Prepaid expenses and other current assets | 0.2 | 0.3 | ||
Total current assets | 0.4 | 0.5 | ||
Property and equipment - gross | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Property and equipment - net | 0 | 0 | ||
Investment in Consolidated Subsidiary | 5,303.9 | 5,401.1 | ||
Due from affiliates | 0.2 | 0.2 | ||
Due from Joint Ventures, Noncurrent | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | 5,304.5 | 5,401.8 | ||
CURRENT LIABILITIES: | ||||
Accounts payable - trade | 0.4 | 0.7 | ||
Deferred revenues | 0 | 0 | ||
Accrued liabilities | 0 | 0.1 | ||
Total current liabilities | 0.4 | 0.8 | ||
Long-term debt | 0 | 0 | ||
Due to affiliates | 17.8 | 11.2 | ||
Other liabilities | 3.1 | 3.8 | ||
Deferred income taxes - net | 0 | (0.1) | ||
Shareholders' equity | 5,283.2 | 5,386.1 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,304.5 | 5,401.8 | ||
Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (3.4) | (1.7) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | 0 | 0 | ||
Proceeds from (Payments for) Other Financing Activities | 0 | |||
Proceeds from disposals of property and equipment | 0 | 0 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 0 | |||
Net cash used in investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | 6.7 | 7.2 | ||
Proceeds from exercise of share options | (3.3) | (5.3) | ||
Net cash used in financing activities | 3.4 | 1.9 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | 0 | 0.2 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0.2 | 3.7 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0.2 | 3.9 | ||
RCI (Issuer) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Repayments of Long-term Debt | 128 | |||
Condensed Consolidating Income Statements | ||||
REVENUE | 1.7 | 14.5 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 0.2 | 5.3 | ||
Depreciation and amortization | 0 | 4.7 | ||
Selling, general and administrative | 0.3 | (2.1) | ||
Loss on disposals of property and equipment | (0.1) | 0.2 | ||
Total costs and expenses | 0.4 | 8.1 | ||
Income (Loss) from Equity Method Investments | 0 | |||
INCOME (LOSS) FROM OPERATIONS | 1.3 | 6.4 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense | (38.5) | (39.6) | ||
Interest income | 1.1 | 0.7 | ||
Gain (loss) on extinguishment of debt | (0.2) | |||
Other - net | (5.4) | (4.8) | ||
Total other (expense) - net | (42.8) | (43.9) | ||
INCOME (LOSS) BEFORE INCOME TAXES | (41.5) | (37.5) | ||
Provision for income taxes | 3.4 | (10.5) | ||
Equity in earnings (losses) of subsidiaries, net of tax | 31.7 | 17.7 | ||
NET INCOME (LOSS) | (13.2) | (9.3) | ||
Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | (13.2) | (9.3) | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes | 2.8 | 0.9 | ||
COMPREHENSIVE INCOME (LOSS) | (10.4) | (8.4) | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 206.3 | 532 | 161 | 206.3 |
Receivables - trade and other | 0.8 | 1.2 | ||
Prepaid expenses and other current assets | 8.1 | 10.7 | ||
Total current assets | 169.9 | 218.2 | ||
Property and equipment - gross | 240.1 | 241.9 | ||
Less accumulated depreciation and amortization | 123.8 | 121.4 | ||
Property and equipment - net | 116.3 | 120.5 | ||
Investment in Consolidated Subsidiary | 6,293.3 | 6,253.5 | ||
Due from affiliates | 680.7 | 680 | ||
Due from Joint Ventures, Noncurrent | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Other assets | 4.5 | 5.2 | ||
TOTAL ASSETS | 7,264.7 | 7,277.4 | ||
CURRENT LIABILITIES: | ||||
Accounts payable - trade | 15.5 | 12.9 | ||
Deferred revenues | 0 | 0 | ||
Accrued liabilities | 87.5 | 95.6 | ||
Total current liabilities | 103 | 108.5 | ||
Long-term debt | 2,510.5 | 2,510.3 | ||
Due to affiliates | 7.7 | 11.4 | ||
Other liabilities | 253.8 | 261.2 | ||
Deferred income taxes - net | 186.8 | 182.7 | ||
Shareholders' equity | 4,202.9 | 4,203.3 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,264.7 | 7,277.4 | ||
Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (41.6) | 73.8 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (3.4) | (9.7) | ||
Proceeds from (Payments for) Other Financing Activities | 0 | |||
Proceeds from disposals of property and equipment | 0.1 | 0 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 0 | |||
Net cash used in investing activities | (3.3) | (9.7) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | (0.4) | (166) | ||
Proceeds from exercise of share options | 0 | 0 | ||
Net cash used in financing activities | (0.4) | (294) | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (45.3) | (229.9) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 206.3 | 532 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 161 | 302.1 | ||
Non-guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Repayments of Long-term Debt | 0 | |||
Condensed Consolidating Income Statements | ||||
REVENUE | 211.3 | 374.5 | ||
COSTS AND EXPENSES: | ||||
Direct operating costs (excluding items below) | 157.3 | 179.6 | ||
Depreciation and amortization | 97.9 | 94.4 | ||
Selling, general and administrative | 19.6 | 21.5 | ||
Loss on disposals of property and equipment | 1.4 | 3.2 | ||
Total costs and expenses | 276.2 | 298.7 | ||
Income (Loss) from Equity Method Investments | (1.3) | |||
INCOME (LOSS) FROM OPERATIONS | (66.2) | 75.8 | ||
OTHER INCOME (EXPENSE): | ||||
Interest expense | (0.5) | (0.1) | ||
Interest income | 6.3 | 1.4 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Other - net | (1.7) | 1.2 | ||
Total other (expense) - net | 4.1 | 2.5 | ||
INCOME (LOSS) BEFORE INCOME TAXES | (62.1) | 78.3 | ||
Provision for income taxes | 7.2 | 39.7 | ||
Equity in earnings (losses) of subsidiaries, net of tax | 0 | 0 | ||
NET INCOME (LOSS) | (69.3) | 38.6 | ||
Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | (69.3) | 38.6 | ||
OTHER COMPREHENSIVE INCOME: | ||||
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income taxes | 0 | 0 | ||
COMPREHENSIVE INCOME (LOSS) | (69.3) | 38.6 | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 1,125.6 | 719.8 | 1,052.9 | 1,125.6 |
Receivables - trade and other | 202 | 211.6 | ||
Prepaid expenses and other current assets | 7 | 4.5 | ||
Total current assets | 1,261.9 | 1,341.7 | ||
Property and equipment - gross | 8,689.3 | 8,592 | ||
Less accumulated depreciation and amortization | 2,251.6 | 2,159.8 | ||
Property and equipment - net | 6,437.7 | 6,432.2 | ||
Investment in Consolidated Subsidiary | 0 | 0 | ||
Due from affiliates | 9.5 | 11.5 | ||
Due from Joint Ventures, Noncurrent | 270 | 270.2 | ||
Investment in unconsolidated subsidiary | 29.6 | 30.9 | ||
Other assets | 6.5 | 7.6 | ||
TOTAL ASSETS | 8,015.2 | 8,094.1 | ||
CURRENT LIABILITIES: | ||||
Accounts payable - trade | 77.5 | 83.6 | ||
Deferred revenues | 4.4 | 1.1 | ||
Accrued liabilities | 52.2 | 63.4 | ||
Total current liabilities | 134.1 | 148.1 | ||
Long-term debt | 0 | 0 | ||
Due to affiliates | 664.9 | 669.1 | ||
Other liabilities | 29.1 | 28.6 | ||
Deferred income taxes - net | 10.8 | 10.9 | ||
Shareholders' equity | 7,176.3 | 7,237.4 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,015.2 | $ 8,094.1 | ||
Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 33.9 | 9.7 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (32) | (21.2) | ||
Proceeds from (Payments for) Other Financing Activities | (70.8) | |||
Proceeds from disposals of property and equipment | 1.2 | 0.1 | ||
Proceeds from Collection of Long-term Loans to Related Parties | 1.3 | |||
Net cash used in investing activities | (100.3) | (21.1) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Advances (to) from affiliates | (6.3) | 158.8 | ||
Proceeds from exercise of share options | 0 | 0 | ||
Net cash used in financing activities | (6.3) | 158.8 | ||
DECREASE IN CASH AND CASH EQUIVALENTS | (72.7) | 147.4 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,125.6 | 719.8 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,052.9 | $ 867.2 |