England and Wales | 98-1023315 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
2800 Post Oak Boulevard, Suite 5450, Houston, Texas | 77056-6189 |
(Address of principal executive offices) | (Zip Code) |
Page | ||
ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 1,005,898 | $ | 1,024,008 | |||
Receivables - trade and other | 470,299 | 423,839 | |||||
Prepaid expenses and other current assets | 66,789 | 55,121 | |||||
Deferred tax assets - net | 20,387 | 26,628 | |||||
Assets of discontinued operations | 23,559 | 22,954 | |||||
Total current assets | 1,586,932 | 1,552,550 | |||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||
Drilling equipment | 6,849,769 | 6,764,046 | |||||
Construction in progress | 889,841 | 756,308 | |||||
Other property and equipment | 148,255 | 140,739 | |||||
Property, plant and equipment - gross | 7,887,865 | 7,661,093 | |||||
Less accumulated depreciation and amortization | 1,677,712 | 1,589,364 | |||||
Property, plant and equipment - net | 6,210,153 | 6,071,729 | |||||
Other assets | 67,708 | 75,208 | |||||
TOTAL ASSETS | $ | 7,864,793 | $ | 7,699,487 |
ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except shares) (Unaudited) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable - trade | $ | 77,627 | $ | 83,004 | |||
Deferred revenues | 55,084 | 52,340 | |||||
Accrued pension and other postretirement benefits | 17,821 | 23,392 | |||||
Accrued compensation and related employee costs | 38,209 | 43,732 | |||||
Accrued income taxes | 5,831 | 26,088 | |||||
Accrued interest | 27,368 | 27,711 | |||||
Other current liabilities | 11,593 | 16,572 | |||||
Liabilities of discontinued operations | 21,255 | 21,255 | |||||
Total current liabilities | 254,788 | 294,094 | |||||
Long-term debt | 2,009,152 | 2,009,598 | |||||
Other liabilities | 401,945 | 390,199 | |||||
Deferred income taxes - net | 495,401 | 473,872 | |||||
Commitments and contingent liabilities (Note 4) | — | — | |||||
SHAREHOLDERS' EQUITY: | |||||||
Class A Ordinary Shares, $0.125 par value, 124,778,407 and 124,740,407 shares issued at June 30, 2013, and December 31, 2012, respectively | 15,597 | 15,593 | |||||
Additional paid-in capital | 1,389,598 | 1,372,135 | |||||
Retained earnings | 3,517,942 | 3,366,964 | |||||
Cost of 566,139 and 529,387 treasury shares at June 30, 2013, and December 31, 2012, respectively | (5,833 | ) | (1,886 | ) | |||
Accumulated other comprehensive loss | (213,797 | ) | (221,082 | ) | |||
Total shareholders' equity | 4,703,507 | 4,531,724 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 7,864,793 | $ | 7,699,487 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | $ | 408,883 | $ | 351,018 | $ | 803,121 | $ | 684,495 | |||||||
COSTS AND EXPENSES: | |||||||||||||||
Direct operating costs (excluding items below) | 216,044 | 188,114 | 425,513 | 370,253 | |||||||||||
Depreciation and amortization | 66,531 | 61,330 | 131,147 | 120,296 | |||||||||||
Selling, general and administrative | 33,263 | 25,098 | 62,694 | 48,154 | |||||||||||
Gain on disposals of property and equipment | (19,222 | ) | (2,063 | ) | (18,914 | ) | (2,119 | ) | |||||||
Material charges and other operating expenses | — | 8,126 | — | 12,697 | |||||||||||
Total costs and expenses | 296,616 | 280,605 | 600,440 | 549,281 | |||||||||||
INCOME FROM OPERATIONS | 112,267 | 70,413 | 202,681 | 135,214 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense, net of interest capitalized | (17,685 | ) | (12,993 | ) | (36,266 | ) | (24,250 | ) | |||||||
Loss on extinguishment of debt | — | (11,767 | ) | — | (11,767 | ) | |||||||||
Interest income | 368 | 146 | 727 | 260 | |||||||||||
Other - net | (443 | ) | (122 | ) | (1,237 | ) | 1,215 | ||||||||
Total other income (expense) - net | (17,760 | ) | (24,736 | ) | (36,776 | ) | (34,542 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS | |||||||||||||||
BEFORE INCOME TAXES | 94,507 | 45,677 | 165,905 | 100,672 | |||||||||||
Provision (benefit) for income taxes | 11,663 | (5,171 | ) | 14,927 | (5,675 | ) | |||||||||
NET INCOME FROM CONTINUING OPERATIONS | 82,844 | 50,848 | 150,978 | 106,347 | |||||||||||
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | — | (1,413 | ) | — | (7,395 | ) | |||||||||
NET INCOME | $ | 82,844 | $ | 49,435 | $ | 150,978 | $ | 98,952 | |||||||
INCOME (LOSS) PER SHARE - BASIC: | |||||||||||||||
Income from continuing operations | $ | 0.67 | $ | 0.41 | $ | 1.22 | $ | 0.87 | |||||||
Discontinued operations | $ | — | $ | (0.01 | ) | $ | — | $ | (0.06 | ) | |||||
Net income | $ | 0.67 | $ | 0.40 | $ | 1.22 | $ | 0.81 | |||||||
INCOME (LOSS) PER SHARE - DILUTED: | |||||||||||||||
Income from continuing operations | $ | 0.67 | $ | 0.41 | $ | 1.21 | $ | 0.86 | |||||||
Discontinued operations | $ | — | $ | (0.01 | ) | $ | — | $ | (0.06 | ) | |||||
Net income | $ | 0.67 | $ | 0.40 | $ | 1.21 | $ | 0.80 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
NET INCOME | $ | 82,844 | $ | 49,435 | $ | 150,978 | $ | 98,952 | |||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes of $1,969 and $1,825 for the three months ended June 30, 2013 and 2012, and $3,922 and $3,650 for the six months ended June 30, 2013 and 2012, respectively: | |||||||||||||||
Amortization of net loss | 4,447 | 4,087 | 8,859 | 8,174 | |||||||||||
Amortization of transition obligation | — | 77 | — | 154 | |||||||||||
Amortization of prior service cost | (790 | ) | (776 | ) | (1,574 | ) | (1,551 | ) | |||||||
3,657 | 3,388 | 7,285 | 6,777 | ||||||||||||
COMPREHENSIVE INCOME | $ | 86,501 | $ | 52,823 | $ | 158,263 | $ | 105,729 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
CASH PROVIDED BY OPERATIONS: | |||||||
Net income | $ | 150,978 | $ | 98,952 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation and amortization | 131,147 | 120,296 | |||||
Deferred income taxes | (1,037 | ) | 4,793 | ||||
Provision for pension and postretirement benefits | 14,746 | 16,457 | |||||
Share-based compensation expense | 16,870 | 11,767 | |||||
Gain on disposals of property, plant and equipment | (18,914 | ) | (2,119 | ) | |||
Postretirement benefit claims paid | (1,995 | ) | (2,069 | ) | |||
Contributions to pension plans | (6,223 | ) | (32,099 | ) | |||
Asset impairment charges | — | 2,896 | |||||
Changes in current assets and liabilities: | |||||||
Receivables - trade and other | (21,575 | ) | (42,504 | ) | |||
Prepaid expenses and other current assets | (11,668 | ) | (18,058 | ) | |||
Accounts payable | (40 | ) | (14,543 | ) | |||
Accrued income taxes | (20,257 | ) | (3,293 | ) | |||
Deferred revenues | 2,744 | (223 | ) | ||||
Other current liabilities | (20,432 | ) | 10,483 | ||||
Net changes in other noncurrent assets and liabilities | 19,988 | 12,075 | |||||
Net cash provided by operations | 234,332 | 162,811 | |||||
CASH USED IN INVESTING ACTIVITIES: | |||||||
Capital expenditures | (298,655 | ) | (290,773 | ) | |||
Increase in restricted cash | — | (9,449 | ) | ||||
Proceeds from disposals of property, plant and equipment | 42,056 | 9,247 | |||||
Net cash used in investing activities | (256,599 | ) | (290,975 | ) | |||
CASH PROVIDED BY FINANCING ACTIVITIES: | |||||||
Proceeds from borrowings | — | 493,415 | |||||
Repayments of borrowings | — | (139,609 | ) | ||||
Excess tax benefits from share-based compensation | 157 | 1,142 | |||||
Proceeds from exercise of share options | 2,180 | — | |||||
Other | 1,820 | — | |||||
Net cash provided by financing activities | 4,157 | 354,948 | |||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,110 | ) | 226,784 | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,024,008 | 438,853 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,005,898 | $ | 665,637 |
Shares outstanding | Class A ordinary shares/ Common stock | Additional paid-in capital | Retained earnings | Treasury shares | Accumulated other comprehensive income (loss) | Total shareholders' equity | ||||||||||||||||||||
Balance, January 1, 2012 | 123,581 | $ | 15,947 | $ | 1,478,233 | $ | 3,186,362 | $ | (128,884 | ) | $ | (225,671 | ) | $ | 4,325,987 | |||||||||||
Net shares issued (acquired) under share-based compensation plans | 552 | 64 | (21,428 | ) | — | 17,908 | — | (3,456 | ) | |||||||||||||||||
Share-based compensation | — | — | 10,874 | — | — | — | 10,874 | |||||||||||||||||||
Excess tax benefit from share-based compensation plans | — | — | 1,142 | — | — | — | 1,142 | |||||||||||||||||||
Retirement benefit adjustments, net of taxes of $3,650 | — | — | — | — | — | 6,777 | 6,777 | |||||||||||||||||||
Cancelation of treasury shares | — | (419 | ) | (109,068 | ) | 109,487 | — | |||||||||||||||||||
Other | 52 | — | — | — | — | — | — | |||||||||||||||||||
Net income | — | — | — | 98,952 | — | — | 98,952 | |||||||||||||||||||
Balance, June 30, 2012 | 124,185 | $ | 15,592 | $ | 1,359,753 | $ | 3,285,314 | $ | (1,489 | ) | $ | (218,894 | ) | $ | 4,440,276 | |||||||||||
Balance, January 1, 2013 | 124,211 | $ | 15,593 | $ | 1,372,135 | $ | 3,366,964 | $ | (1,886 | ) | $ | (221,082 | ) | $ | 4,531,724 | |||||||||||
Net shares issued (acquired) under share-based compensation plans | 1 | 4 | 2,107 | — | (3,947 | ) | — | (1,836 | ) | |||||||||||||||||
Share-based compensation | — | — | 13,379 | — | — | — | 13,379 | |||||||||||||||||||
Excess tax benefit from share-based compensation plans | — | — | 157 | — | — | — | 157 | |||||||||||||||||||
Retirement benefit adjustments, net of taxes of $3,922 | — | — | — | — | — | 7,285 | 7,285 | |||||||||||||||||||
Other | — | — | 1,820 | — | — | — | 1,820 | |||||||||||||||||||
Net income | — | — | — | 150,978 | — | — | 150,978 | |||||||||||||||||||
Balance, June 30, 2013 | 124,212 | $ | 15,597 | $ | 1,389,598 | $ | 3,517,942 | $ | (5,833 | ) | $ | (213,797 | ) | $ | 4,703,507 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Average common shares outstanding - basic | 123,599 | 123,033 | 123,417 | 122,891 | |||||||
Effect of dilutive securities - share-based compensation | 786 | 728 | 885 | 836 | |||||||
Average common shares - diluted | 124,385 | 123,761 | 124,302 | 123,727 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Employee and director share options | 53 | 42 | 53 | 42 | |||||||
Restricted shares | — | 821 | — | — | |||||||
Share appreciation rights | 1,017 | 616 | 1,017 | 616 | |||||||
Total potentially dilutive shares | 1,070 | 1,479 | 1,070 | 658 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 2,881 | $ | 2,721 | $ | 5,731 | $ | 5,442 | |||||||
Interest cost | 7,388 | 7,569 | 14,695 | 15,138 | |||||||||||
Expected return on plan assets | (9,567 | ) | (9,367 | ) | (19,028 | ) | (18,734 | ) | |||||||
Amortization of net loss | 6,852 | 7,559 | 13,626 | 13,804 | |||||||||||
Amortization of prior service cost | (1,181 | ) | (1,158 | ) | (2,349 | ) | (2,317 | ) | |||||||
Total net pension cost | 6,373 | 7,324 | 12,675 | 13,333 | |||||||||||
Less: Discontinued operations | — | 1,424 | — | 1,424 | |||||||||||
Continuing operations | $ | 6,373 | $ | 5,900 | $ | 12,675 | $ | 11,909 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 355 | $ | 457 | $ | 707 | $ | 915 | |||||||
Interest cost | 723 | 942 | 1,437 | 1,884 | |||||||||||
Amortization of net loss | — | 80 | — | 161 | |||||||||||
Amortization of transition obligation | — | 119 | — | 237 | |||||||||||
Amortization of prior service cost | (37 | ) | (36 | ) | (73 | ) | (73 | ) | |||||||
Total other postretirement benefit cost | $ | 1,041 | $ | 1,562 | $ | 2,071 | $ | 3,124 |
Scheduled delivery date | Total estimated project costs | Total costs incurred through June 30, 2013 | Projected costs for the remainder of 2013 | Projected costs in 2014 | Projected costs in 2015 | Total future costs | |||||||||||||||||||
Rowan Renaissance | December 2013 | $ | 729 | $ | 232 | $ | 486 | $ | 11 | $ | — | $ | 497 | ||||||||||||
Rowan Resolute | June 2014 | 737 | 261 | 44 | 432 | — | 476 | ||||||||||||||||||
Rowan Reliance | October 2014 | 732 | 194 | 34 | 500 | 4 | 538 | ||||||||||||||||||
Rowan Relentless | March 2015 | 755 | 180 | 26 | 103 | 446 | 575 | ||||||||||||||||||
$ | 2,953 | $ | 867 | $ | 590 | $ | 1,046 | $ | 450 | $ | 2,086 |
• | 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. |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Fair value | Carrying value | Fair value | Carrying value | ||||||||||||
5% Senior Notes, due 2017 | $ | 431,076 | $ | 398,818 | $ | 445,568 | $ | 398,678 | |||||||
7.875% Senior Notes, due 2019 | 600,063 | 498,005 | 617,076 | 497,842 | |||||||||||
4.875% Senior Notes, due 2022 | 719,252 | 713,998 | 761,509 | 714,775 | |||||||||||
5.4% Senior Notes, due 2042 | 358,411 | 398,331 | 406,493 | 398,303 | |||||||||||
$ | 2,108,802 | $ | 2,009,152 | $ | 2,230,646 | $ | 2,009,598 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 62,730 | $ | 340,202 | $ | 602,966 | $ | — | $ | 1,005,898 | |||||||||
Receivables - trade and other | 234 | 106,410 | 363,655 | — | 470,299 | ||||||||||||||
Other current assets | 757 | 61,006 | 25,413 | — | 87,176 | ||||||||||||||
Assets of discontinued operations | — | 23,559 | — | — | 23,559 | ||||||||||||||
Total current assets | 63,721 | 531,177 | 992,034 | — | 1,586,932 | ||||||||||||||
Property, plant and equipment - gross | — | 1,316,176 | 6,571,689 | — | 7,887,865 | ||||||||||||||
Less accumulated depreciation and amortization | — | 497,224 | 1,180,488 | — | 1,677,712 | ||||||||||||||
Property, plant and equipment - net | — | 818,952 | 5,391,201 | — | 6,210,153 | ||||||||||||||
Investments in subsidiaries | 4,652,863 | 5,113,475 | — | (9,766,338 | ) | — | |||||||||||||
Due from affiliates | 446 | 1,749,991 | 1,111,949 | (2,862,386 | ) | — | |||||||||||||
Other assets | — | 36,407 | 31,301 | — | 67,708 | ||||||||||||||
$ | 4,717,030 | $ | 8,250,002 | $ | 7,526,485 | $ | (12,628,724 | ) | $ | 7,864,793 | |||||||||
CURRENT LIABILITIES: | |||||||||||||||||||
Accounts payable - trade | $ | 109 | $ | 7,473 | $ | 70,045 | $ | — | $ | 77,627 | |||||||||
Deferred revenues | — | — | 55,084 | — | 55,084 | ||||||||||||||
Accrued liabilities | — | 64,131 | 36,691 | — | 100,822 | ||||||||||||||
Liabilities of discontinued operations | — | 21,255 | — | — | 21,255 | ||||||||||||||
Total current liabilities | 109 | 92,859 | 161,820 | — | 254,788 | ||||||||||||||
Long-term debt | — | 2,009,152 | — | — | 2,009,152 | ||||||||||||||
Due to affiliates | 6,359 | 1,111,916 | 1,744,111 | (2,862,386 | ) | — | |||||||||||||
Other liabilities | 7,055 | 320,288 | 74,602 | — | 401,945 | ||||||||||||||
Deferred income taxes - net | — | 103,006 | 392,395 | — | 495,401 | ||||||||||||||
Shareholders' equity | 4,703,507 | 4,612,781 | 5,153,557 | (9,766,338 | ) | 4,703,507 | |||||||||||||
$ | 4,717,030 | $ | 8,250,002 | $ | 7,526,485 | $ | (12,628,724 | ) | $ | 7,864,793 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 58,628 | $ | 228,085 | $ | 737,295 | $ | — | $ | 1,024,008 | |||||||||
Receivables - trade and other | 107 | 95,386 | 328,346 | — | 423,839 | ||||||||||||||
Other current assets | 293 | 46,614 | 34,842 | — | 81,749 | ||||||||||||||
Assets of discontinued operations | — | 22,954 | — | — | 22,954 | ||||||||||||||
Total current assets | 59,028 | 393,039 | 1,100,483 | — | 1,552,550 | ||||||||||||||
Property, plant and equipment - gross | — | 1,311,987 | 6,349,106 | — | 7,661,093 | ||||||||||||||
Less accumulated depreciation and amortization | — | 487,147 | 1,102,217 | — | 1,589,364 | ||||||||||||||
Property, plant and equipment - net | — | 824,840 | 5,246,889 | — | 6,071,729 | ||||||||||||||
Investments in subsidiaries | 4,562,016 | 1,355,968 | — | (5,917,984 | ) | — | |||||||||||||
Due from affiliates | — | 4,524,480 | 391,008 | (4,915,488 | ) | — | |||||||||||||
Other assets | — | 37,787 | 37,421 | — | 75,208 | ||||||||||||||
$ | 4,621,044 | $ | 7,136,114 | $ | 6,775,801 | $ | (10,833,472 | ) | $ | 7,699,487 | |||||||||
CURRENT LIABILITIES: | |||||||||||||||||||
Accounts payable - trade | $ | 1,277 | $ | 23,210 | $ | 58,517 | $ | — | $ | 83,004 | |||||||||
Deferred revenues | — | — | 52,340 | — | 52,340 | ||||||||||||||
Accrued liabilities | — | 73,443 | 64,052 | — | 137,495 | ||||||||||||||
Liabilities of discontinued operations | — | 21,255 | — | — | 21,255 | ||||||||||||||
Total current liabilities | 1,277 | 117,908 | 174,909 | — | 294,094 | ||||||||||||||
Long-term debt | — | 2,009,598 | — | — | 2,009,598 | ||||||||||||||
Due to affiliates | 88,043 | — | 4,827,445 | (4,915,488 | ) | — | |||||||||||||
Other liabilities | — | 323,778 | 66,421 | — | 390,199 | ||||||||||||||
Deferred income taxes - net | — | 122,814 | 351,058 | — | 473,872 | ||||||||||||||
Shareholders' equity | 4,531,724 | 4,562,016 | 1,355,968 | (5,917,984 | ) | 4,531,724 | |||||||||||||
$ | 4,621,044 | $ | 7,136,114 | $ | 6,775,801 | $ | (10,833,472 | ) | $ | 7,699,487 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 25,277 | $ | 408,087 | $ | (24,481 | ) | $ | 408,883 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | — | 5,991 | 234,534 | (24,481 | ) | 216,044 | |||||||||||||
Depreciation and amortization | — | 12,635 | 53,896 | — | 66,531 | ||||||||||||||
Selling, general and administrative | 6,887 | 1,737 | 24,639 | — | 33,263 | ||||||||||||||
Loss (gain) on disposals of property and equipment | — | 19 | (19,241 | ) | — | (19,222 | ) | ||||||||||||
Total costs and expenses | 6,887 | 20,382 | 293,828 | (24,481 | ) | 296,616 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (6,887 | ) | 4,895 | 114,259 | — | 112,267 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (17,685 | ) | (30 | ) | 30 | (17,685 | ) | |||||||||||
Interest income | 52 | 160 | 186 | (30 | ) | 368 | |||||||||||||
Other - net | 2,502 | (2,302 | ) | (643 | ) | — | (443 | ) | |||||||||||
Total other income (expense) - net | 2,554 | (19,827 | ) | (487 | ) | — | (17,760 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (4,333 | ) | (14,932 | ) | 113,772 | — | 94,507 | ||||||||||||
(Benefit) provision for income taxes | — | (9,610 | ) | 21,273 | — | 11,663 | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (4,333 | ) | (5,322 | ) | 92,499 | — | 82,844 | ||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 87,177 | 81,083 | — | (168,260 | ) | — | |||||||||||||
NET INCOME | $ | 82,844 | $ | 75,761 | $ | 92,499 | $ | (168,260 | ) | $ | 82,844 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 39,375 | $ | 344,282 | $ | (32,639 | ) | $ | 351,018 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | 162 | 7,677 | 212,914 | (32,639 | ) | 188,114 | |||||||||||||
Depreciation and amortization | — | 13,791 | 47,539 | — | 61,330 | ||||||||||||||
Selling, general and administrative | 4,034 | 3,881 | 17,183 | — | 25,098 | ||||||||||||||
Loss (gain) on disposals of property and equipment | — | 1,374 | (3,437 | ) | — | (2,063 | ) | ||||||||||||
Material charges and other operating expenses | 8,126 | (6 | ) | 6 | — | 8,126 | |||||||||||||
Total costs and expenses | 12,322 | 26,717 | 274,205 | (32,639 | ) | 280,605 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (12,322 | ) | 12,658 | 70,077 | — | 70,413 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (12,906 | ) | (87 | ) | — | (12,993 | ) | |||||||||||
Interest income | 5 | 98 | 43 | — | 146 | ||||||||||||||
Loss on debt extinguishment | — | (11,180 | ) | (587 | ) | — | (11,767 | ) | |||||||||||
Other - net | 2 | 98 | (222 | ) | — | (122 | ) | ||||||||||||
Total other income (expense) - net | 7 | (23,890 | ) | (853 | ) | — | (24,736 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (12,315 | ) | (11,232 | ) | 69,224 | — | 45,677 | ||||||||||||
(Benefit) provision for income taxes | — | 3,324 | (8,495 | ) | — | (5,171 | ) | ||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (12,315 | ) | (14,556 | ) | 77,719 | — | 50,848 | ||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | (1,413 | ) | — | — | (1,413 | ) | ||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 61,750 | 53,055 | — | (114,805 | ) | — | |||||||||||||
NET INCOME | $ | 49,435 | $ | 37,086 | $ | 77,719 | $ | (114,805 | ) | $ | 49,435 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 59,636 | $ | 799,606 | $ | (56,121 | ) | $ | 803,121 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | — | 17,309 | 464,325 | (56,121 | ) | 425,513 | |||||||||||||
Depreciation and amortization | — | 25,276 | 105,871 | — | 131,147 | ||||||||||||||
Selling, general and administrative | 16,099 | 2,451 | 44,144 | — | 62,694 | ||||||||||||||
Loss (gain) on disposals of property and equipment | — | 229 | (19,143 | ) | — | (18,914 | ) | ||||||||||||
Total costs and expenses | 16,099 | 45,265 | 595,197 | (56,121 | ) | 600,440 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (16,099 | ) | 14,371 | 204,409 | — | 202,681 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (36,266 | ) | (68 | ) | 68 | (36,266 | ) | |||||||||||
Interest income | 94 | 236 | 465 | (68 | ) | 727 | |||||||||||||
Other - net | 5,001 | (4,770 | ) | (1,468 | ) | — | (1,237 | ) | |||||||||||
Total other income (expense) - net | 5,095 | (40,800 | ) | (1,071 | ) | — | (36,776 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (11,004 | ) | (26,429 | ) | 203,338 | — | 165,905 | ||||||||||||
(Benefit) provision for income taxes | — | (16,998 | ) | 31,925 | — | 14,927 | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (11,004 | ) | (9,431 | ) | 171,413 | — | 150,978 | ||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 161,982 | 131,330 | — | (293,312 | ) | — | |||||||||||||
NET INCOME | $ | 150,978 | $ | 121,899 | $ | 171,413 | $ | (293,312 | ) | $ | 150,978 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 81,263 | $ | 671,057 | $ | (67,825 | ) | $ | 684,495 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | 162 | 14,289 | 423,627 | (67,825 | ) | 370,253 | |||||||||||||
Depreciation and amortization | — | 26,673 | 93,623 | — | 120,296 | ||||||||||||||
Selling, general and administrative | 4,675 | 9,910 | 33,569 | — | 48,154 | ||||||||||||||
Loss (gain) on disposals of property and equipment | — | 1,541 | (3,660 | ) | — | (2,119 | ) | ||||||||||||
Material charges and other operating expenses | 9,801 | 1,357 | 1,539 | — | 12,697 | ||||||||||||||
Total costs and expenses | 14,638 | 53,770 | 548,698 | (67,825 | ) | 549,281 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (14,638 | ) | 27,493 | 122,359 | — | 135,214 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (23,959 | ) | (291 | ) | — | (24,250 | ) | |||||||||||
Interest income | 10 | 141 | 109 | — | 260 | ||||||||||||||
Loss on debt extinguishment | — | (11,180 | ) | (587 | ) | — | (11,767 | ) | |||||||||||
Other - net | 2 | 134 | 1,079 | — | 1,215 | ||||||||||||||
Total other income (expense) - net | 12 | (34,864 | ) | 310 | — | (34,542 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (14,626 | ) | (7,371 | ) | 122,669 | — | 100,672 | ||||||||||||
(Benefit) provision for income taxes | — | 5,452 | (11,127 | ) | — | (5,675 | ) | ||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (14,626 | ) | (12,823 | ) | 133,796 | — | 106,347 | ||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | (7,395 | ) | — | — | (7,395 | ) | ||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 113,578 | 103,441 | — | (217,019 | ) | — | |||||||||||||
NET INCOME | $ | 98,952 | $ | 83,223 | $ | 133,796 | $ | (217,019 | ) | $ | 98,952 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME | $ | 82,844 | $ | 75,761 | $ | 92,499 | $ | (168,260 | ) | $ | 82,844 | ||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes | |||||||||||||||||||
Amortization of net loss | 4,447 | 4,447 | — | (4,447 | ) | 4,447 | |||||||||||||
Amortization of prior service credit | (790 | ) | (790 | ) | — | 790 | (790 | ) | |||||||||||
3,657 | 3,657 | — | (3,657 | ) | 3,657 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 86,501 | $ | 79,418 | $ | 92,499 | $ | (171,917 | ) | $ | 86,501 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME | $ | 49,435 | $ | 37,086 | $ | 77,719 | $ | (114,805 | ) | $ | 49,435 | ||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes | |||||||||||||||||||
Amortization of net loss | 4,087 | 4,087 | — | (4,087 | ) | 4,087 | |||||||||||||
Amortization of transition obligation | 77 | 77 | — | (77 | ) | 77 | |||||||||||||
Amortization of prior service credit | (776 | ) | (776 | ) | — | 776 | (776 | ) | |||||||||||
3,388 | 3,388 | — | (3,388 | ) | 3,388 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 52,823 | $ | 40,474 | $ | 77,719 | $ | (118,193 | ) | $ | 52,823 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME | $ | 150,978 | $ | 121,899 | $ | 171,413 | $ | (293,312 | ) | $ | 150,978 | ||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes | |||||||||||||||||||
Amortization of net loss | 8,859 | 8,859 | — | (8,859 | ) | 8,859 | |||||||||||||
Amortization of prior service credit | (1,574 | ) | (1,574 | ) | — | 1,574 | (1,574 | ) | |||||||||||
7,285 | 7,285 | — | (7,285 | ) | 7,285 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 158,263 | $ | 129,184 | $ | 171,413 | $ | (300,597 | ) | $ | 158,263 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME | $ | 98,952 | $ | 83,223 | $ | 133,796 | $ | (217,019 | ) | $ | 98,952 | ||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes | |||||||||||||||||||
Amortization of net loss | 8,174 | 8,174 | — | (8,174 | ) | 8,174 | |||||||||||||
Amortization of transition obligation | 154 | 154 | — | (154 | ) | 154 | |||||||||||||
Amortization of prior service credit | (1,551 | ) | (1,551 | ) | — | 1,551 | (1,551 | ) | |||||||||||
6,777 | 6,777 | — | (6,777 | ) | 6,777 | ||||||||||||||
COMPREHENSIVE INCOME | $ | 105,729 | $ | 90,000 | $ | 133,796 | $ | (223,796 | ) | $ | 105,729 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (9,724 | ) | $ | (31,349 | ) | $ | 275,405 | $ | — | $ | 234,332 | |||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Property, plant and equipment additions | — | (31,984 | ) | (266,671 | ) | — | (298,655 | ) | |||||||||||
Proceeds from disposals of property, plant and equipment | — | 2,233 | 39,823 | — | 42,056 | ||||||||||||||
Investments in consolidated subsidiaries | — | (145,791 | ) | — | 145,791 | — | |||||||||||||
Net cash used in investing activities | — | (175,542 | ) | (226,848 | ) | 145,791 | (256,599 | ) | |||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Advances (to) from affiliates | 9,826 | 318,851 | (328,677 | ) | — | — | |||||||||||||
Contributions from parent | — | — | 145,791 | (145,791 | ) | — | |||||||||||||
Excess tax benefits from share-based compensation | — | 157 | — | — | 157 | ||||||||||||||
Proceeds from exercise of share options | 2,180 | — | — | — | 2,180 | ||||||||||||||
Other | 1,820 | — | — | — | 1,820 | ||||||||||||||
Net cash provided by (used in) financing activities | 13,826 | 319,008 | (182,886 | ) | (145,791 | ) | 4,157 | ||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,102 | 112,117 | (134,329 | ) | — | (18,110 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 58,628 | 228,085 | 737,295 | — | 1,024,008 | ||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 62,730 | $ | 340,202 | $ | 602,966 | $ | — | $ | 1,005,898 |
Rowan Companies plc (Parent) | RCI (Issuer) | Other non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (14,565 | ) | $ | 58,243 | $ | 210,133 | $ | (91,000 | ) | $ | 162,811 | |||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Property, plant and equipment additions | — | (20,718 | ) | (270,055 | ) | — | (290,773 | ) | |||||||||||
Proceeds from disposals of property, plant and equipment | — | 5,653 | 3,594 | — | 9,247 | ||||||||||||||
Increase in restricted cash | — | (9,449 | ) | — | — | (9,449 | ) | ||||||||||||
Investments in consolidated subsidiaries | — | (6,669 | ) | — | 6,669 | — | |||||||||||||
Net cash used in investing activities | — | (31,183 | ) | (266,461 | ) | 6,669 | (290,975 | ) | |||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Repayments of borrowings | — | (101,602 | ) | (38,007 | ) | — | (139,609 | ) | |||||||||||
Advances (to) from affiliates | 9,068 | (159,248 | ) | 150,180 | — | — | |||||||||||||
Contributions from parent | — | — | 6,669 | (6,669 | ) | — | |||||||||||||
Proceeds from borrowings | — | 493,415 | — | — | 493,415 | ||||||||||||||
Dividends paid | — | — | (91,000 | ) | 91,000 | — | |||||||||||||
Excess tax benefits from share-based compensation | — | 1,142 | — | — | 1,142 | ||||||||||||||
Net cash provided by (used in) financing activities | 9,068 | 233,707 | 27,842 | 84,331 | 354,948 | ||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,497 | ) | 260,767 | (28,486 | ) | — | 226,784 | ||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 21,472 | 184,677 | 232,704 | — | 438,853 | ||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 15,975 | $ | 445,444 | $ | 204,218 | $ | — | $ | 665,637 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Utilization: (1) | |||||||||||||||
High specification jack-up (2) | 96 | % | 93 | % | 95 | % | 94 | % | |||||||
Premium jack-up(3) | 73 | % | 63 | % | 71 | % | 57 | % | |||||||
Conventional jack-up | 27 | % | 33 | % | 23 | % | 33 | % | |||||||
Average day rate: (4) | |||||||||||||||
High specification jack-up | $ | 200,144 | $ | 177,598 | $ | 201,032 | $ | 177,240 | |||||||
Premium jack-up | $ | 101,876 | $ | 94,612 | $ | 99,957 | $ | 95,400 | |||||||
Conventional jack-up | $ | 119,614 | $ | 72,198 | $ | 109,856 | $ | 73,000 | |||||||
(1) Utilization is the number of revenue-producing days, including fractional days, divided by the aggregate number of calendar days in the period. | |||||||||||||||
(2) We define high-specification jack-ups as those that have hook load capacity of at least two million pounds. | |||||||||||||||
(3) We define premium jack-ups as those cantilevered rigs capable of operating in water depths of 300 feet or more. | |||||||||||||||
(4) Average day rate is computed by dividing day rate revenues by the number of revenue-producing days, including fractional days. Day rate revenues include the contractual rates and amounts received in lump sum, such as for rig mobilization or capital improvements, which are amortized over the initial term of the contract. Revenues attributable to reimbursable expenses are excluded from average day rates. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues (in thousands): | |||||||||||||||
Northern Europe | $ | 135,648 | $ | 126,619 | $ | 274,755 | $ | 249,600 | |||||||
Middle East(1) | 101,695 | 102,778 | 203,402 | 189,656 | |||||||||||
US GOM | 59,381 | 52,864 | 109,644 | 122,501 | |||||||||||
Southeast Asia | 57,695 | 30,442 | 108,335 | 53,593 | |||||||||||
Other international(2) | 45,333 | 28,620 | 89,841 | 52,772 | |||||||||||
Subtotal - Day-rate revenues | 399,752 | 341,323 | 785,977 | 668,122 | |||||||||||
Other revenues(3) | 9,131 | 9,695 | 17,144 | 16,373 | |||||||||||
Total | $ | 408,883 | $ | 351,018 | $ | 803,121 | $ | 684,495 | |||||||
Revenue-producing days: | |||||||||||||||
Northern Europe | 528 | 540 | 1049 | 1,080 | |||||||||||
Middle East | 739 | 786 | 1490 | 1,382 | |||||||||||
US GOM | 433 | 444 | 812 | 1,033 | |||||||||||
Southeast Asia | 343 | 237 | 660 | 419 | |||||||||||
Other international | 270 | 210 | 531 | 391 | |||||||||||
Total | 2,313 | 2,217 | 4,542 | 4,305 | |||||||||||
Average day rate:(4) | |||||||||||||||
Northern Europe | $ | 256,752 | $ | 234,480 | $ | 261,926 | $ | 231,111 | |||||||
Middle East | $ | 137,693 | $ | 130,761 | $ | 136,548 | $ | 137,233 | |||||||
US GOM | $ | 137,119 | $ | 119,063 | $ | 134,947 | $ | 118,588 | |||||||
Southeast Asia | $ | 168,289 | $ | 128,447 | $ | 164,140 | $ | 127,907 | |||||||
Other international | $ | 167,835 | $ | 136,286 | $ | 169,066 | $ | 134,967 | |||||||
Total fleet | $ | 172,837 | $ | 153,957 | $ | 173,028 | $ | 155,197 | |||||||
Utilization:(5) | |||||||||||||||
Northern Europe | 97 | % | 99 | % | 97 | % | 99 | % | |||||||
Middle East | 76 | % | 79 | % | 76 | % | 69 | % | |||||||
US GOM | 68 | % | 61 | % | 64 | % | 65 | % | |||||||
Southeast Asia | 94 | % | 71 | % | 91 | % | 81 | % | |||||||
Other international | 99 | % | 99 | % | 98 | % | 99 | % | |||||||
Total fleet | 83 | % | 79 | % | 81 | % | 77 | % | |||||||
(1) Our rigs operating in the Middle East are located in Saudi Arabia and Qatar. | |||||||||||||||
(2) "Other international" includes rigs operating in Egypt and Trinidad. | |||||||||||||||
(3) Other revenues are primarily revenues received for reimbursable expenses. | |||||||||||||||
(4) Average day rate is computed by dividing day rate revenues by the number of revenue-producing days, including fractional days. Day rate revenues include the contractual rates and amounts received in lump sum, such as for rig mobilization or capital improvements, which are amortized over the initial term of the contract. Revenues attributable to reimbursable expenses are excluded from average day rates. | |||||||||||||||
(5) Utilization is the number of revenue-producing days, including fractional days, divided by the aggregate number of calendar days in the period. |
Three months ended June 30, 2013 | Three months ended June 30, 2012 | ||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||
Revenues | $ | 408.9 | 100 | % | $ | 351.0 | 100 | % | |||||
Operating costs | (216.0 | ) | -53 | % | (188.1 | ) | -54 | % | |||||
Depreciation expense | (66.5 | ) | -16 | % | (61.3 | ) | -17 | % | |||||
Selling, general and administrative expenses | (33.3 | ) | -8 | % | (25.1 | ) | -7 | % | |||||
Net gain on disposals of property and equipment | 19.2 | 5 | % | 2.0 | 1 | % | |||||||
Material charges and other operating expenses | — | — | % | (8.1 | ) | -2 | % | ||||||
Operating income | $ | 112.3 | 27 | % | $ | 70.4 | 20 | % |
Increase (decrease) | |||
Higher average day rates for existing rigs | $ | 43.7 | |
Higher utilization of existing rigs | 14.8 | ||
Revenues for reimbursable costs and other, net | (0.6 | ) | |
Net increase | $ | 57.9 |
Increase | |||
Increase due to rigs operating in higher-cost locations | $ | 20.8 | |
Expansion of foreign shorebases | 3.6 | ||
Other, net | 3.5 | ||
Net increase | $ | 27.9 |
Six months ended June 30, 2013 | Six months ended June 30, 2012 | ||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||
Revenues | $ | 803.1 | 100 | % | $ | 684.5 | 100 | % | |||||
Operating costs | (425.5 | ) | -53 | % | (370.2 | ) | -54 | % | |||||
Depreciation expense | (131.1 | ) | -16 | % | (120.3 | ) | -18 | % | |||||
Selling, general and administrative expenses | (62.7 | ) | -8 | % | (48.2 | ) | -7 | % | |||||
Net gain on disposals of property and equipment | 18.9 | 2 | % | 2.1 | — | % | |||||||
Material charges and other operating expenses | — | — | % | (12.7 | ) | -2 | % | ||||||
Operating income | $ | 202.7 | 25 | % | $ | 135.2 | 20 | % |
Increase | |||
Higher average day rates for existing rigs | $ | 77.0 | |
Higher utilization of existing rigs | 30.3 | ||
Addition of the Joe Douglas | 10.6 | ||
Revenues for reimbursable costs and other, net | 0.7 | ||
Net increase | $ | 118.6 |
Increase | |||
Increase due to rigs operating in higher-cost locations | $ | 39.7 | |
Addition of the Joe Douglas | 1.9 | ||
Expansion of foreign shorebases | 5.7 | ||
Other, net | 8.0 | ||
Net increase | $ | 55.3 |
July 18, 2013 | February 21, 2013 | ||||||
Northern Europe | $ | 1,568 | $ | 1,599 | |||
Middle East | 641 | 790 | |||||
US GOM | 1,891 | 594 | |||||
West Africa | 226 | 226 | |||||
Southeast Asia | 133 | 183 | |||||
Other international | 128 | 203 | |||||
$ | 4,587 | $ | 3,595 |
2013 | $ | 636 | |
2014 | 1,232 | ||
2015 | 1,206 | ||
2016 | 1,016 | ||
2017 | 497 | ||
$ | 4,587 |
June 30, 2013 | December 31, 2012 | ||||||
Cash and cash equivalents | $ | 1,005.9 | $ | 1,024.0 | |||
Current assets (excluding assets of discontinued operations) | $ | 1,563.4 | $ | 1,529.6 | |||
Current liabilities (excluding liabilities of discontinued operations) | $ | 233.5 | $ | 272.8 | |||
Current ratio (excluding assets and liabilities of discontinued operations) | 6.70 | 5.61 | |||||
Long-term debt | $ | 2,009.2 | $ | 2,009.6 | |||
Shareholders' equity | $ | 4,703.5 | $ | 4,531.7 | |||
Long-term debt/total capitalization | 0.30 | 0.31 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Net cash provided by operating activities | $ | 234.3 | $ | 162.8 | |||
Capital expenditures | (298.7 | ) | (290.8 | ) | |||
Repayments of borrowings | — | (139.6 | ) | ||||
Increase in restricted cash | — | (9.4 | ) | ||||
Proceeds from borrowings, net of issue costs | — | 493.4 | |||||
Proceeds from disposals of property and equipment | 42.1 | 9.3 | |||||
Proceeds from exercise of share options | 2.2 | — | |||||
Other | 2.0 | 1.1 | |||||
Total net source (use) | $ | (18.1 | ) | $ | 226.8 |
• | $121.7 million towards construction of the ultra-deepwater drillships Rowan Renaissance, Rowan Resolute, Rowan Reliance and Rowan Relentless; |
• | $147.3 million for improvements to the existing fleet, including contractually required modifications; and |
• | $29.7 million for rig equipment inventory and other. |
• | drilling permit and operations delays, moratoria or suspensions, new and future regulatory, legislative or permitting requirements (including requirements related to certification and testing of blow-out preventers and other equipment or otherwise impacting operations), future lease sales, changes in laws, rules and regulations that have or may impose increased financial responsibility, additional oil spill contingency plan requirements and other governmental actions that may result in claims of force majeure or otherwise adversely affect our existing drilling contracts; |
• | governmental regulatory, legislative and permitting requirements affecting drilling operations in the areas in which our rigs operate; |
• | tax matters, including our effective tax rates, tax positions, results of audits, changes in tax laws, treaties and regulations, tax assessments and liabilities for taxes; |
• | changes in worldwide rig supply and demand, competition or technology, including as a result of delivery of newbuild drilling rigs and reactivation of rigs; |
• | variable levels of drilling activity and expenditures, whether as a result of global capital markets and liquidity, prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs; |
• | downtime, lost revenue and other risks associated with rig operations, operating hazards, or rig relocations and transportation, including rig or equipment failure, collisions, damage and other unplanned repairs, the limited availability of transport vessels, hazards, self-imposed drilling limitations and other delays due to weather conditions or otherwise, and the limited availability or high cost of insurance coverage for certain offshore perils or associated removal of wreckage or debris; |
• | access to spare parts, equipment and personnel to maintain, upgrade and service our fleet; |
• | possible cancellation or suspension of drilling contracts as a result of force majeure, mechanical difficulties, delays, performance or other reasons; |
• | potential cost overruns and other risks inherent to shipyard rig construction, repair or enhancement, unexpected delays in rig and equipment delivery and engineering or design issues following shipyard delivery, or delays in the dates our rigs will enter a shipyard, be transported and delivered, enter service or return to service; |
• | actual contract commencement dates; contract terminations, contract extensions, contract option exercises, contract revenues, contract awards; the termination or renegotiation of contracts by customers or payment or operational delays by our customers; |
• | operating hazards, including environmental or other liabilities, risks, expenses or losses, whether related to storm or hurricane damage, losses or liabilities (including wreckage or debris removal), collisions, or otherwise; |
• | our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to competition from other contract drillers, labor regulations or otherwise; |
• | governmental action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, mass strikes, or an escalation or additional outbreak of armed hostilities or other crises in oil or natural gas producing areas of the Middle East or other geographic areas, which may result in extended business interruptions, suspended operations, or result in claims by our customers of a force majeure situation and payment disputes; |
• | terrorism, piracy, political instability, hostilities, acts of war, nationalization, expropriation, confiscation or deprivation of our assets or military action impacting our operations, assets or financial performance in our areas of operations, including the Middle East; |
• | the outcome of legal proceedings, or other claims or contract disputes, including any inability to collect receivables or resolve significant contractual or day rate disputes, any purported renegotiation, nullification, cancellation or breach of contracts with customers or other parties, and any failure to negotiate or complete definitive contracts following announcements of receipt of letters of intent; |
• | potential long-lived asset impairments; |
• | costs and uncertainties associated with our redomestication, or changes in foreign or domestic laws that could reduce or eliminate the anticipated benefits of the transaction; |
• | impacts of any global financial or economic downturn; |
• | effects of accounting changes and adoption of accounting policies; |
• | potential unplanned expenditures and funding requirements, including investments in pension plans and other benefit plans; and |
• | other important factors described from time to time in the reports filed by us with the Securities and Exchange Commission (the Commission), and the New York Stock Exchange (NYSE). |
Month ended | Total number of shares acquired 1 | Average price paid per share 1 | Total number of shares purchased as part of publicly announced plans or programs 2 | Approximate dollar value of shares that may yet be purchased under the plans or programs2 | ||||||||||
Balance forward | $ | 24,987,408 | ||||||||||||
April 30, 2013 | 1,937 | $ | 4.50 | — | 24,987,408 | |||||||||
May 31, 2013 | 3,839 | $ | 33.82 | — | 24,987,408 | |||||||||
June 30, 2013 | 4,572 | $ | 0.125 | — | 24,987,408 | |||||||||
Total | 10,348 | $ | 13.44 | — | ||||||||||
1 The total number of shares acquired includes (i) shares acquired from employees and non-employee directors by an affiliated employee benefit trust upon forfeiture of nonvested awards or in satisfaction of tax withholding requirements and (ii) shares purchased, if any, pursuant to a publicly announced share repurchase program described in note 2 below. The price paid for shares acquired as a result of forfeitures is the par value of $0.125 per share. The price paid for shares acquired in satisfaction of withholding taxes is the share price on the date of the transaction. There were no shares repurchased under the Company's share repurchase program during the second quarter of 2013. | ||||||||||||||
2 On July 25, 2012, the Board of Directors of Rowan Companies plc, as successor issuer to Rowan Companies, Inc., approved the continuation of its $150 million share repurchase program, of which approximately $25 million remained available. Share repurchases may be commenced or suspended from time to time without prior notice. Any shares acquired under the share repurchase program will be canceled. |
10.1† | 2013 Rowan Companies plc Incentive Plan (incorporated by reference to Annex A to the Company’s Definitive Proxy Statement filed on March 13, 2013 (File No. 1-05491)). |
10.2† | Form of Restricted Share Unit Notice pursuant to the 2013 Rowan Companies plc Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed April 30, 2013 (File No. 1-05491)). |
10.3† | Form of Share Appreciation Right Notice pursuant to the 2013 Rowan Companies plc Incentive Plan (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed April 30, 2013 (File No. 1-05491)). |
10.4† | Form of Performance Unit Award Notice pursuant to the 2013 Rowan Companies plc Incentive Plan (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed April 30, 2013 (File No. 1-05491)). |
10.5† | Form of Non-employee Director Restricted Share Unit Notice pursuant to the 2013 Rowan Companies plc Incentive Plan (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed April 30, 2013 (File No. 1-05491)). |
31.1* | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* | XBRL Instance Document. |
101.SCH* | XBRL Taxonomy Extension Schema Document. |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
ROWAN COMPANIES PLC | ||
(Registrant) | ||
Date: August 7, 2013 | /s/ J. KEVIN BARTOL | |
J. Kevin Bartol | ||
Executive Vice President, | ||
Chief Financial Officer and Treasurer | ||
Date: August 7, 2013 | /s/ GREGORY M. HATFIELD | |
Gregory M. Hatfield | ||
Vice President and Controller | ||
(Chief Accounting Officer) |
1. | I have reviewed this Form 10-Q of Rowan Companies plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 7, 2013 | /s/ W. MATT RALLS | |
W. Matt Ralls | ||
Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Rowan Companies plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 7, 2013 | /s/ J. KEVIN BARTOL | |
J. Kevin Bartol | ||
Executive Vice President, Chief Financial Officer and Treasurer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented. |
Date: August 7, 2013 | /s/ W. MATT RALLS | |
W. Matt Ralls | ||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented. |
Date: August 7, 2013 | /s/ J. KEVIN BARTOL | |
J. Kevin Bartol | ||
Executive Vice President, Chief Financial Officer and Treasurer |
Earnings Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings per Share | A reconciliation of basic and diluted shares follows (in thousands):
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Antidilutive Securities Excluded From Earnings per Share | Share options and appreciation rights granted under share-based compensation plans are antidilutive and excluded from diluted earnings per share when their exercise or strike price exceeds the average market price during the period. The following table sets forth antidilutive shares excluded from diluted earnings per share. Such securities could potentially dilute earnings per share in the future (in thousands):
|
Basis of Presentation and Nature of Operations
|
6 Months Ended |
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Jun. 30, 2013
|
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations The financial statements included in this Form 10-Q are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc and its subsidiaries, all of which are wholly owned. Intercompany balances and transactions are eliminated in consolidation. Unless the context otherwise requires, the terms “Company,” “we,” “us” and “our” are used to refer to Rowan Companies plc and its consolidated subsidiaries. The financial statements included in this Form 10-Q have been prepared without audit in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. Management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the results for the interim periods presented. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The Company is a major provider of international and domestic offshore oil and gas contract drilling services and provides its services utilizing a fleet of 30 self-elevating mobile offshore “jack-up” drilling units. The Company’s primary focus is on high-specification and premium jack-up rigs, which its customers use for exploratory and development drilling and, in certain areas, well workover operations. Additionally, the Company has four ultra-deepwater drillships under construction. The first drillship, the Rowan Renaissance, is scheduled for delivery in December 2013 and expected to commence operations under a three-year contract in the first quarter of 2014. The second drillship, the Rowan Resolute, is scheduled for delivery in June 2014 and expected to commence operations under a three-year contract in the third quarter of 2014, and the third drillship, the Rowan Reliance, is scheduled for delivery in October 2014 and expected to commence operations under a three-year contract in the first quarter 2015. The Company conducts offshore drilling operations in various markets throughout the world, which currently include the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East, Southeast Asia, the U.S. Gulf of Mexico (US GOM), Trinidad and Egypt. The financial information as of December 31, 2012, presented in this report does not constitute the Company's statutory accounts for that year within the meaning of the U.K. Companies Act 2006. Statutory accounts as required by the Companies Act 2006 for the year ended December 31, 2012, have been delivered to the Registrar of Companies in the U.K. The auditors reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) of the Companies Act 2006. |
Pension and Other Postretirement Benefits (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to pension and other postretirement benefit plans | $ 8,200,000 | |||
Future contributions to pension and other postretirement benefit plans | 15,000,000 | |||
Defined Benefit Pension [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,881,000 | 2,721,000 | 5,731,000 | 5,442,000 |
Interest cost | 7,388,000 | 7,569,000 | 14,695,000 | 15,138,000 |
Expected return on plan assets | (9,567,000) | (9,367,000) | (19,028,000) | (18,734,000) |
Amortization of net loss | 6,852,000 | 7,559,000 | 13,626,000 | 13,804,000 |
Amortization of prior service cost | (1,181,000) | (1,158,000) | (2,349,000) | (2,317,000) |
Total net pension cost and other postretirement benefit cost | 6,373,000 | 7,324,000 | 12,675,000 | 13,333,000 |
Less: Discontinued operations | 0 | 1,424,000 | 0 | 1,424,000 |
Continuing operations | 6,373,000 | 5,900,000 | 12,675,000 | 11,909,000 |
Other Postretirement Benefit [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 355,000 | 457,000 | 707,000 | 915,000 |
Interest cost | 723,000 | 942,000 | 1,437,000 | 1,884,000 |
Amortization of net loss | 0 | 80,000 | 0 | 161,000 |
Amortization of transition obligation | 0 | 119,000 | 0 | 237,000 |
Amortization of prior service cost | (37,000) | (36,000) | (73,000) | (73,000) |
Total net pension cost and other postretirement benefit cost | $ 1,041,000 | $ 1,562,000 | $ 2,071,000 | $ 3,124,000 |
Pension and Other Postretirement Benefits (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Periodic Pension and Other Postretirement Benefit Costs | Recognized net periodic pension cost included the following components (in thousands):
Recognized other postretirement benefit cost included the following components (in thousands):
|
Other Financial Statement Disclosures (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair value [Member]
|
||
Fair values of Financial Instruments [Abstract] | ||
5% Senior Notes, due 2017 | $ 431,076 | $ 445,568 |
7.875% Senior Notes, due 2019 | 600,063 | 617,076 |
4.875% Senior Notes, due 2022 | 719,252 | 761,509 |
5.4% Senior Notes, due 2042 | 358,411 | 406,493 |
Total | 2,108,802 | 2,230,646 |
Carrying value [Member]
|
||
Fair values of Financial Instruments [Abstract] | ||
5% Senior Notes, due 2017 | 398,818 | 398,678 |
7.875% Senior Notes, due 2019 | 498,005 | 497,842 |
4.875% Senior Notes, due 2022 | 713,998 | 714,775 |
5.4% Senior Notes, due 2042 | 398,331 | 398,303 |
Total | $ 2,009,152 | $ 2,009,598 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Pension and other postretirement benefit adjustments, income tax expense (benefit) | $ 1,969 | $ 1,825 | $ 3,922 | $ 3,650 |
Earnings Per Share
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share A reconciliation of basic and diluted shares follows (in thousands):
There were no adjustments to net income required for purposes of computing diluted earnings per share. Share options and appreciation rights granted under share-based compensation plans are antidilutive and excluded from diluted earnings per share when their exercise or strike price exceeds the average market price during the period. The following table sets forth antidilutive shares excluded from diluted earnings per share. Such securities could potentially dilute earnings per share in the future (in thousands):
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Retirement benefit adjustments, taxes | $ 3,922 | $ 3,650 |
Other Financial Statement Disclosures (Details 2) (USD $)
Share data in Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Mar. 31, 2014
|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Member]
|
Jun. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Member]
|
Jun. 30, 2013
Unsecured debt [Member]
Senior Notes due 2017 [Member]
|
Jun. 30, 2013
Unsecured debt [Member]
Senior Notes Due 2019 [Member]
|
Jun. 30, 2013
Unsecured debt [Member]
Senior Notes due 2022 [Member]
|
Jun. 30, 2013
Unsecured debt [Member]
Senior Notes Due 2042 [Member]
|
Jun. 30, 2013
Rowan Companies, Inc. [Member]
|
Jun. 30, 2012
Rowan Companies, Inc. [Member]
|
Jun. 30, 2013
Rowan Companies, Inc. [Member]
|
Jun. 30, 2012
Rowan Companies, Inc. [Member]
|
Jun. 30, 2013
Minimum [Member]
broker
|
Jun. 30, 2013
Maximum [Member]
broker
|
Jun. 06, 2013
Rowan Paris [Member]
|
Jun. 30, 2013
Rowan Paris [Member]
|
|
Debt Instrument [Line Items] | ||||||||||||||||||||||
Number of brokers who provided fair value of debt securities | 1 | 2 | ||||||||||||||||||||
Stated interest rate (in hundredths) | 5.00% | 7.875% | 4.875% | 5.40% | ||||||||||||||||||
Maturity of debt | Sep. 01, 2017 | Aug. 01, 2019 | Jun. 01, 2022 | Dec. 01, 2042 | ||||||||||||||||||
Shareholders' Equit [Abstract] | ||||||||||||||||||||||
Other | $ 1,800,000 | $ 1,820,000 | $ 0 | |||||||||||||||||||
Number of shares representing the cash received in settlement of bankruptcy court claim | 52 | |||||||||||||||||||||
Accumulated other comprehensive losses (AOCL) | 213,797,000 | 213,797,000 | 221,082,000 | 213,800,000 | 218,900,000 | |||||||||||||||||
Amortization of pension and postretirement benefit cost | 3,657,000 | 3,388,000 | 7,285,000 | 6,777,000 | 7,285,000 | 6,777,000 | ||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||||||||||||
Accrued capital expenditures | 36,400,000 | 39,600,000 | ||||||||||||||||||||
Interest capitalized in connection with rig construction projects | 11,500,000 | 7,300,000 | 22,200,000 | 14,100,000 | ||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||
Ownership interest (in hundredths) | 100.00% | 100.00% | ||||||||||||||||||||
U.S. statutory tax rate (in hundredths) | 35.00% | |||||||||||||||||||||
U.K. statutory tax rate (in hundredths) | 23.00% | 24.00% | 26.00% | |||||||||||||||||||
Gain on Sale of Equipment [Abstract] | ||||||||||||||||||||||
Proceeds from sale of rigs | 40,000,000 | |||||||||||||||||||||
Gain (loss) on disposals of property and equipment | 19,222,000 | 2,063,000 | 18,914,000 | 2,119,000 | (19,000) | (1,374,000) | (229,000) | (1,541,000) | 19,200,000 | |||||||||||||
Material Charges and Other Operating Expenses [Abstract] | ||||||||||||||||||||||
Material charges and other operating expenses | 0 | 8,126,000 | 0 | 12,697,000 | ||||||||||||||||||
Redomestication expenses | 8,100,000 | 0 | 9,800,000 | |||||||||||||||||||
Steel impairment costs | $ 0 | $ 2,896,000 |