10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C.  20549

FORM 10-Q

þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2014

OR

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM_____TO_____

1-5491

Commission File Number

Rowan Companies plc

(Exact name of registrant as specified in its charter)

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)

(713) 621-7800

(Registrant's telephone number, including area code)

Inapplicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes þ   No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨   No þ

The number of Class A ordinary shares, $0.125 par value, outstanding at April 30, 2014, was 124,363,044.

ROWAN COMPANIES PLC

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets – March 31, 2014, and December 31, 2013	1
	Condensed Consolidated Statements of Income – Three months ended March 31, 2014 and 2013	3
	Condensed Consolidated Statements of Comprehensive Income – Three months ended March 31, 2014 and 2013	4
	Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2014 and 2013	5
	Condensed Consolidated Statements of Changes in Shareholders’ Equity – Three months ended March 31, 2014 and 2013	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	31
	SIGNATURES	32

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	March 31, 2014		December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,440,389	$	1,092,844
Receivables - trade and other	383,636		344,546
Prepaid expenses and other current assets	33,333		45,538
Deferred tax assets - net	22,901		22,137
Assets of discontinued operations	—		23,813
Total current assets	1,880,259		1,528,878
PROPERTY, PLANT AND EQUIPMENT:
Drilling equipment	7,115,357		7,040,451
Construction in progress	1,448,161		1,009,380
Other property and equipment	152,687		147,884
Property, plant and equipment - gross	8,716,205		8,197,715
Less accumulated depreciation and amortization	1,880,855		1,811,960
Property, plant and equipment - net	6,835,350		6,385,755
Other assets	68,499		61,128
TOTAL ASSETS	$	8,784,108	$	7,975,761

See Notes to Unaudited Condensed Consolidated Financial Statements.

1

ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except shares) (Unaudited)
	March 31, 2014			December 31, 2013
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	100,088		$	123,976
Deferred revenues	41,013			54,515
Accrued pension and other postretirement benefits	43,551			49,659
Accrued compensation and related employee costs	52,774			59,096
Accrued income taxes	17,596			8,374
Accrued interest	35,363			27,841
Other current liabilities	9,532			11,001
Liabilities of discontinued operations	—			20,122
Total current liabilities	299,917			354,584
Long-term debt	2,807,967			2,008,700
Other liabilities	288,942			289,061
Deferred income taxes - net	430,505			429,655
Commitments and contingent liabilities (Note 4)	—			—
SHAREHOLDERS' EQUITY:
Class A Ordinary Shares, $0.125 par value, 124,793,407 and 124,778,407 shares issued at March 31, 2014, and December 31, 2013, respectively	15,599			15,597
Additional paid-in capital	1,412,714			1,407,031
Retained earnings	3,679,135			3,619,540
Cost of 478,465 and 542,475 treasury shares at March 31, 2014, and December 31, 2013, respectively	(10,343		)	(5,962		)
Accumulated other comprehensive loss	(140,328		)	(142,445		)
Total shareholders' equity	4,956,777			4,893,761
TOTAL LIABILITIES AND EQUITY	$	8,784,108		$	7,975,761

See Notes to Unaudited Condensed Consolidated Financial Statements.

2

ROWAN COMPANIES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three months ended March 31,
	2014			2013
REVENUES	$	377,602		$	394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	220,369			209,469
Depreciation and amortization	70,873			64,616
Selling, general and administrative	29,875			29,431
Loss on disposals of property and equipment	803			308
Litigation settlement	(20,875		)	—
Total costs and expenses	301,045			303,824
INCOME FROM OPERATIONS	76,557			90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	(20,960		)	(18,581		)
Interest income	587			359
Other - net	(351		)	(794		)
Total other income (expense) - net	(20,724		)	(19,016		)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES	55,833			71,398
Provision for income taxes	281			3,264
NET INCOME FROM CONTINUING OPERATIONS	55,552			68,134
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX	4,043			—
NET INCOME	$	59,595		$	68,134
INCOME PER SHARE - BASIC:
Income from continuing operations	$	0.45		$	0.55
Discontinued operations	$	0.03		$	—
Net income	$	0.48		$	0.55
INCOME PER SHARE - DILUTED:
Income from continuing operations	$	0.45		$	0.55
Discontinued operations	$	0.03		$	—
Net income	$	0.48		$	0.55

See Notes to Unaudited Condensed Consolidated Financial Statements.

3

ROWAN COMPANIES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three months ended March 31,
	2014			2013
NET INCOME	$	59,595		$	68,134
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes of $1,287 and $1,953, respectively:
Amortization of net loss	3,127			4,412
Amortization of prior service credit	(723		)	(784		)
	2,404			3,628
COMPREHENSIVE INCOME	$	61,999		$	71,762

See Notes to Unaudited Condensed Consolidated Financial Statements.

4

ROWAN COMPANIES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three months ended March 31,
	2014			2013
CASH PROVIDED BY OPERATIONS:
Net income	$	59,595		$	68,134
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	70,873			64,616
Deferred income taxes	(1,489		)	(396		)
Provision for pension and postretirement benefits	6,170			7,332
Share-based compensation expense	7,547			7,530
(Gain) loss on disposals of property, plant and equipment	(1,110		)	308
Postretirement benefit claims paid	(894		)	(881		)
Contributions to pension plans	(6,448		)	(249		)
Changes in current assets and liabilities:
Receivables - trade and other	(39,090		)	(15,081		)
Prepaid expenses and other current assets	12,248			9,339
Accounts payable	(13,637		)	(1,655		)
Accrued income taxes	9,222			(11,950		)
Deferred revenues	(13,502		)	(2,090		)
Other current liabilities	(11,037		)	(23,778		)
Net changes in other noncurrent assets and liabilities	2,075			2,000
Net cash provided by operations	80,523			103,179
CASH USED IN INVESTING ACTIVITIES:
Capital expenditures	(532,518		)	(111,965		)
Proceeds from disposals of property, plant and equipment	6,600			2,387
Net cash used in investing activities	(525,918		)	(109,578		)
CASH PROVIDED BY FINANCING ACTIVITIES:
Proceeds from borrowings	793,380			—
Debt issue costs	(687		)	—
Excess tax benefits from share-based compensation	(563		)	112
Proceeds from exercise of share options	810			1,531
Net cash provided by financing activities	792,940			1,643
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	347,545			(4,756		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,092,844			1,024,008
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	1,440,389		$	1,019,252

See Notes to Unaudited Condensed Consolidated Financial Statements.

5

ROWAN COMPANIES PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	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, 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	(43	)	1		1,083			—		(4,112		)	—			(3,028		)
Share-based compensation	—		—		5,575			—		—			—			5,575
Excess tax benefit from share-based compensation plans	—		—		112			—		—			—			112
Retirement benefit adjustments, net of taxes of $1,953	—		—		—			—		—			3,628			3,628
Net income	—		—		—			68,134		—			—			68,134
Balance, March 31, 2013	124,168		$	15,594	$	1,378,905		$	3,435,098	$	(5,998	)	$	(217,454	)	$	4,606,145
Balance, January 1, 2014	124,237		$	15,597	$	1,407,031		$	3,619,540	$	(5,962	)	$	(142,445	)	$	4,893,761
Net shares issued (acquired) under share-based compensation plans	78		2		529			—		(4,381		)	—			(3,850		)
Share-based compensation	—		—		5,717			—		—			—			5,717
Excess tax benefit from share-based compensation plans	—		—		(563		)	—		—			—			(563		)
Retirement benefit adjustments, net of taxes of $1,287	—		—		—			—		—			2,404			2,404
Other	—		—		—			—		—			(287		)	(287		)
Net income	—		—		—			59,595		—			—			59,595
Balance, March 31, 2014	124,315		$	15,599	$	1,412,714		$	3,679,135	$	(10,343	)	$	(140,328	)	$	4,956,777

See Notes to Unaudited Condensed Consolidated Financial Statements.

6

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Basis of Presentation and Nature of Operations

The financial statements included in this Form 10-Q are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc ("Rowan plc") and its subsidiaries, 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 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, 2013.

We are a global provider of offshore oil and gas contract drilling services utilizing a fleet of 30 self-elevating mobile offshore “jack-up” drilling units and four ultra-deepwater drillships, three of which are currently under construction.  Historically, our primary focus has been on high-specification and premium jack-up rigs, which our customers use for exploratory and development drilling and associated drilling services.  In 2009, we began executing a new strategic plan that included divesting non-core assets and investing in ultra-deepwater assets, with a goal of balancing earnings from jack-ups and deepwater rigs over the long term. In 2011 and 2012, we entered into contracts for the construction of four ultra-deepwater drillships. In January 2014, we took delivery of the first of these drillships, the Rowan Renaissance, which commenced drilling operations under a three-year contract offshore West Africa in April 2014. The Rowan Resolute is scheduled for delivery in late June 2014 and expected to commence operations under a three-year contract in late September 2014. The Rowan Reliance is scheduled for delivery in late October 2014 and expected to commence operations under a three-year contract in late January 2015. The Rowan Relentless is scheduled for delivery in March 2015 and is not yet under contract.

The Company conducts offshore drilling operations in various markets throughout the world including the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico (US GOM), Southeast Asia, West Africa, Trinidad and the Mediterranean.

The financial information as of December 31, 2013, presented in this report does not constitute the Company's statutory accounts for that year within the meaning of the U.K. Companies Act 2006 (the "Companies Act").  Statutory accounts as required by the Companies Act for the year ended December 31, 2013, have been delivered to the Registrar of Companies in the U.K. The auditors reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Sections 498(2) or (3) of the Companies Act.

Note 2 – Earnings Per Share

A reconciliation of basic and diluted shares follows (in thousands):

	Three months ended March 31,
	2014	2013
Average common shares outstanding - basic	123,707	123,222
Effect of dilutive securities - share-based compensation	970	980
Average common shares - diluted	124,677	124,202

There were no adjustments to net income required for purposes of computing diluted earnings per share.

7

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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):

	Three months ended March 31,
	2014	2013
Share appreciation rights	1,066	1,022
Employee and director share options	42	42
Total potentially dilutive shares	1,108	1,064

Note 3 – Pension and Other Postretirement Benefits

The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees.

Recognized net periodic pension cost included the following components (in thousands):

	Three months ended March 31,
	2014			2013
Service cost	$	3,620		$	2,850
Interest cost	8,092			7,307
Expected return on plan assets	(10,251		)	(9,461		)
Amortization of net loss	4,231			6,774
Amortization of prior service credit	(1,110		)	(1,168		)
Total net pension cost	$	4,582		$	6,302

Recognized other postretirement benefit cost included the following components (in thousands):

	Three months ended March 31,
	2014			2013
Service cost	$	267		$	352
Interest cost	757			714
Amortization of net loss	(39		)	—
Amortization of prior service credit	(8		)	(36		)
Total other postretirement benefit cost	$	977		$	1,030

During the three months ended March 31, 2014, the Company contributed $7.3 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $48 million for the remainder of 2014.

8

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 4 – Commitments and Contingent Liabilities

The following table presents the status of the Company’s ultra-deepwater drillship construction program as of March 31, 2014.  Amounts include capitalized interest and an estimate for project contingencies (in millions):

	Actual/scheduled delivery date	Total estimated project costs		Total costs incurred through March 31, 2014		Projected costs for the remainder of 2014		Projected costs in 2015		Total future costs
Rowan Renaissance	January 2014	$	724	$	650	$	74	$	—	$	74
Rowan Resolute	June 2014	742		306		436		—		436
Rowan Reliance	October 2014	743		216		520		7		527
Rowan Relentless	March 2015	752		194		100		458		558
		$	2,961	$	1,366	$	1,130	$	465	$	1,595

In addition, the Company expects to incur approximately $162 million of capital expenditures for the remainder of 2014 for mobilization, commissioning, riser gas-handling equipment, software certifications and drillship fleet spares to support its deepwater operations.

The Company periodically employs letters of credit in the normal course of its business, and had outstanding letters of credit of approximately $28.7 million at March 31, 2014.

Uncertain tax positions – In 2009, the Company recognized a $25.4 million tax benefit as a result of applying the facts of a third-party tax case to the Company’s situation.  That case provided a more favorable tax treatment for certain foreign contracts entered into in prior years.  This position is currently under audit and has been challenged by field agents of the U.S. Internal Revenue Service.  We have appealed their findings and expect to come to a conclusion within the next twelve months.  We plan to vigorously defend our position and continue to believe that we will more likely than not prevail.

We are involved in various other legal proceedings incidental to our business and are vigorously defending our position in all such matters.  Management believes that there are no known contingencies, claims or lawsuits, other than those described above, that could have a material effect on the Company's financial position, results of operations or cash flows.

Note 5 – Share-Based Compensation

On March 5, 2014, the Company granted restricted share units under its long-term incentive plan with a grant-date fair value aggregating $21.3 million.  The aggregate fair value, net of estimated forfeitures, was $20.2 million, which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date.  

Additionally, on March 5, 2014, the Company granted to certain members of management performance units (P-Units) that have a target value of $100 per unit.  The amount ultimately earned with respect to the P-Units will depend on the Company’s total shareholder return (TSR) ranking compared to a group of peer companies over a three-year period ending December 31, 2016, and could range from zero to $200 per unit depending on performance.  Twenty-five percent of the P-Units’ value is determined by the Company’s relative TSR ranking for each one-year period ended December 31, 2014, 2015, and 2016, respectively, and 25% of the P-Units’ value is determined by the relative TSR ranking for the three-year period ending December 31, 2016.  Vesting of awards and any payment with respect to the P-Units would not occur until the third anniversary following the grant date and would be settled in cash.

The grant-date fair value of the P-Units was estimated to be $8.5 million.  Fair value was estimated using a Monte Carlo simulation model, which considers the probabilities of the Company’s TSR ranking at the end of each performance period, and the amount of the payout at each rank to determine the probability-weighted expected payout.  The Company uses liability accounting to account for the P-Units.  Compensation is recognized on a straight-line basis over a maximum period of three years from the grant

9

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

date and is adjusted for changes in fair value through the vesting date.  In the event there is no payout of the P-Units for any 25% tranche as the result of a failure to meet the performance thresholds, any previously recognized expense relating to that tranche would be reversed at the end of the tranche’s performance period.

At March 31, 2014, the Company had approximately $52.2 million of estimated unrecognized share-based compensation, which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.1 years.

Note 6 – Other Financial Statement Disclosures

Accounts Receivable – The following table sets forth the components of Receivables - trade and other (in thousands):

	March 31, 2014		December 31, 2013
Trade	$	323,948	$	323,679
Income tax	46,852		6,759
Other	12,836		14,108
Total receivables - trade and other	$	383,636	$	344,546

Assets of Discontinued Operations – In February 2014, the Company sold a land rig it retained in the 2011 sale of its manufacturing operations. The net carrying value was $4.1 million, consisting of a $24.2 million asset previously classified as assets of discontinued operations, less $20.1 million of deferred revenues previously classified as liabilities of discontinued operations. The Company received $6.0 million in cash resulting in a $4.0 million gain, net of tax effects. The gain is classified as discontinued operations in the condensed consolidated statement of income for the three months ended March 31, 2014.

Long-term Debt – On January 15, 2014, Rowan plc, as guarantor, and its 100%-owned subsidiary, Rowan Companies, Inc. ("RCI"), as issuer, completed the issuance and sale in a public offering of $400 million aggregate principal amount of 4.75% Senior Notes due 2024 at a price to the public of 99.898% of the principal amount (the "2024 Notes"), and $400 million aggregate principal amount of 5.85% Senior Notes due 2044 at a price to the public of 99.972% of the principal amount (the "2044 Notes," and together, the "notes").  Net proceeds of the offering were approximately $792 million, which the Company intends to use in its rig construction program and for general corporate purposes.

Interest on the notes is payable on January 15 and July 15 of each year, beginning on July 15, 2014. No principal payments are due with respect to the 2024 Notes or the 2044 Notes until their final maturity date of January 15, 2024 and 2044, respectively.

The notes are redeemable in whole or in part at any time at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date for redemptions prior to October 15, 2023, with respect to the 2024 Notes, and prior to July 15, 2043, with respect to the 2044 Notes. On or after such dates, the notes may be redeemed at a price of 100% plus accrued and unpaid interest to the redemption date.

The notes are fully and unconditionally guaranteed on a senior and unsecured basis by Rowan plc.

On January 23, 2014, the Company amended and restated its credit agreement to increase the borrowing capacity under the revolving credit facility from $750 million to $1.0 billion, among other things. There were no amounts drawn under the revolving credit facility at March 31, 2014.

Fair Values of Financial Instruments – 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

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ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

• 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.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. Assets and liabilities measured at fair value are summarized below (in thousands):

			Estimated fair value measurements
	Carrying value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2014:
Assets - cash equivalents	$	1,381,632	$	1,381,632	$	—	$	—
December 31, 2013:
Assets - cash equivalents	$	1,063,500	$	1,063,500	$	—	$	—

Trade receivables and trade payables, which are also required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities.

Those financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities.  Fair values of the Company’s debt securities were provided by one to two brokers who make a market in our debt securities and were measured using a market-approach valuation technique.  Fair value was determined by adding a spread based on actual trades for that security (or a trader quote where actual trades were unavailable) to the applicable benchmark Treasury security with a comparable maturity, in order to derive a current yield.  The yield is then used to determine a price given the individual security’s coupon rate and maturity.  Such inputs are considered “significant other observable inputs,” which are categorized as Level 2 inputs in the fair value hierarchy.  Estimated fair values and related carrying values of our long-term debt securities are shown below (in thousands):

	March 31, 2014				December 31, 2013
	Fair value		Carrying value		Fair value		Carrying value
5% Senior Notes, due 2017	$	436,373	$	399,031	$	433,879	$	398,961
7.875% Senior Notes, due 2019	602,848		498,252		603,177		498,171
4.875% Senior Notes, due 2022	724,994		712,821		711,816		713,208
4.75% Senior Notes, due 2024	404,660		399,600		—		—
5.4% Senior Notes, due 2042	381,005		398,374		368,602		398,360
5.85% Senior Notes, due 2044	403,404		399,889		—		—
	$	2,953,284	$	2,807,967	$	2,117,474	$	2,008,700

Accumulated Other Comprehensive Loss – The Company had accumulated other comprehensive losses (AOCL) totaling $140.3 million and $217.5 million at March 31, 2014 and 2013, respectively, all of which were solely attributable to pension and other postretirement benefits.  All amounts reclassified from AOCL during the three months ended March 31, 2014 and 2013, were attributable to amortization of pension and postretirement benefit cost and totaled $2.4 million and $3.6 million for each period, respectively, net of tax (see Note 3).

11

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $39.0 million and $24.5 million at March 31, 2014 and 2013, respectively.  Interest capitalized in connection with rig construction projects totaled $17.5 million and $10.7 million in the three months ended March 31, 2014 and 2013.

Income Taxes – In accordance with US GAAP for interim reporting, the Company estimates its full-year effective tax rate and applies this rate to its year-to-date pretax income.  In addition, the Company separately calculates the tax impact of unusual items, if any. We provide for income taxes based upon the tax laws and rates in effect in the countries in which we conduct operations. The amounts of our provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Our overall effective tax rate may therefore vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations and other factors.

The Company has not provided deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. subsidiaries of RCI.  It is the Company’s policy and intention to permanently reinvest the earnings of non-U.S. subsidiaries of RCI outside the U.S.  Generally, earnings of non-U.K. subsidiaries that are not subsidiaries of RCI can be distributed to the Company without imposition of either U.K. or local country tax.

Litigation Settlement – In the first quarter of 2014, the Company settled its litigation with the owners and operators of a tanker that collided with the EXL I in May 2012 and received $20.9 million in cash as compensation for damages incurred in 2012 for repair costs to and loss of use of the rig. Such amount was recognized as a component of operating income in the three months ended March 31, 2014.

Note 7 – Guarantees of Registered Securities

Rowan plc and its 100%-owned subsidiary, RCI, have entered into agreements providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan plc of the prompt payment when due of any amount owed to the holders of RCI's 5% Senior Notes due 2017, 7.875% Senior Notes due 2019, 4.875% Senior Notes due 2022, 4.75% Senior Notes due 2024, 5.4% Senior Notes due 2042, and 5.85% Senior Notes due 2044 (the "Senior Notes").

The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc's guarantee of the Senior Notes and reflects the corporate ownership structure as of March 31, 2014. Financial information for the three months ended March 31, 2013, has been recast to reflect changes to the corporate ownership structure that occurred in the first quarter of 2014 and is presented as though the structure at March 31, 2014, was in place at January 1, 2013.

During the quarter ended March 31, 2014, we identified certain immaterial misclassifications in our guarantor financial information at December 31, 2013, and prior periods primarily relating to the allocation of noncurrent income tax liabilities and deferred tax assets and liabilities between RCI and other nonguarantor subsidiaries. These errors had no impact on our consolidated financial statements. We have revised the consolidating balance sheet at December 31, 2013, and the consolidating income statement for the three months ended March 31, 2013, presented herein, to conform to the current period presentation. A summary of the changes follows (in thousands):

12

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

	RCI (Issuer)		Other non-guarantor subsidiaries
Consolidating Balance Sheets
December 31, 2013:
Other current assets:
As reported	$	45,031	$	22,355
As corrected	43,611		23,775
Due from affiliates:
As reported	$	1,439,112	$	579,501
As corrected	1,436,736		542,331
Accrued liabilities:
As reported	$	101,478	$	54,493
As corrected	99,102		56,869
Due to affiliates:
As reported	$	575,184	$	1,421,553
As corrected	546,690		1,410,501
Other liabilities (noncurrent):
As reported	$	194,966	$	85,960
As corrected	235,779		45,147
Deferred income taxes (noncurrent liability):
As reported	$	126,681	$	302,974
As corrected	115,376		314,279
Retained earnings:
As reported	$	4,795,441	$	5,908,071
As corrected	4,793,007		5,910,505

13

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	116,010	$	668,602	$	655,777	$	—		$	1,440,389
Receivables - trade and other	111		47,413		336,112		—			383,636
Other current assets	129		36,526		19,579		—			56,234
Total current assets	116,250		752,541		1,011,468		—			1,880,259
Property, plant and equipment - gross	—		593,056		8,123,149		—			8,716,205
Less accumulated depreciation and amortization	—		247,682		1,633,173		—			1,880,855
Property, plant  and equipment - net	—		345,374		6,489,976		—			6,835,350
Investments in subsidiaries	4,854,569		5,509,437		—		(10,364,006		)	—
Due from affiliates	1		1,387,665		223,155		(1,610,821		)	—
Other assets	—		67,790		709		—			68,499
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108
CURRENT LIABILITIES:
Accounts payable - trade	$	816	$	11,006	$	88,266	$	—		$	100,088
Deferred revenues	—		—		41,013		—			41,013
Accrued liabilities	—		97,336		61,480		—			158,816
Total current liabilities	816		108,342		190,759		—			299,917
Long-term debt	—		2,807,967		—		—			2,807,967
Due to affiliates	4,983		221,305		1,384,533		(1,610,821		)	—
Other liabilities	8,244		240,739		39,959		—			288,942
Deferred income taxes - net	—		427,840		427,602		(424,937		)	430,505
Shareholders' equity	4,956,777		4,256,614		5,682,455		(9,939,069		)	4,956,777
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108

14

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2013

(in thousands)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	64,292	$	92,116	$	936,436	$	—		$	1,092,844
Receivables - trade and other	58		7,877		336,611		—			344,546
Other current assets	289		43,613		23,773		—			67,675
Assets of discontinued operations	—		23,813		—		—			23,813
Total current assets	64,639		167,419		1,296,820		—			1,528,878
Property, plant and equipment - gross	—		593,606		7,604,109		—			8,197,715
Less accumulated depreciation and amortization	—		243,666		1,568,294		—			1,811,960
Property, plant  and equipment - net	—		349,940		6,035,815		—			6,385,755
Investments in subsidiaries	4,860,492		5,657,926		—		(10,518,418		)	—
Due from affiliates	136		1,384,573		506,455		(1,891,164		)	—
Other assets	—		60,343		785		—			61,128
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761
CURRENT LIABILITIES:
Accounts payable - trade	$	1,359	$	13,409	$	109,208	$	—		$	123,976
Deferred revenues	—		—		54,515		—			54,515
Accrued liabilities	—		105,421		50,550		—			155,971
Liabilities of discontinued operations	—		20,122		—		—			20,122
Total current liabilities	1,359		138,952		214,273		—			354,584
Long-term debt	—		2,008,700		—		—			2,008,700
Due to affiliates	22,012		502,139		1,367,013		(1,891,164		)	—
Other liabilities	8,135		239,287		41,639		—			289,061
Deferred income taxes - net	—		421,622		423,216		(415,183		)	429,655
Shareholders' equity	4,893,761		4,309,501		5,793,734		(10,103,235		)	4,893,761
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761

15

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	16,162		$	376,494		$	(15,054	)	$	377,602
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			3,156			232,267			(15,054		)	220,369
Depreciation and amortization	—			4,562			66,311			—			70,873
Selling, general and administrative	5,820			1,229			22,826			—			29,875
Loss (gain) on disposals of  property and equipment	—			17			786			—			803
Litigation settlement	—			—			(20,875		)	—			(20,875		)
Total costs and expenses	5,820			8,964			301,315			(15,054		)	301,045
INCOME (LOSS) FROM OPERATIONS	(5,820		)	7,198			75,179			—			76,557
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(20,960		)	(240		)	240			(20,960		)
Interest income	109			447			271			(240		)	587
Other - net	3,500			(3,494		)	(357		)	—			(351		)
Total other income (expense) - net	3,609			(24,007		)	(326		)	—			(20,724		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(2,211		)	(16,809		)	74,853			—			55,833
(Benefit) provision for income taxes	—			(8,603		)	18,640			(9,756		)	281
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(2,211		)	(8,206		)	56,213			9,756			55,552
DISCONTINUED OPERATIONS, NET OF TAX	—			4,043			—			—			4,043
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	61,806			28,759			—			(90,565		)	—
NET INCOME	$	59,595		$	24,596		$	56,213		$	(80,809	)	$	59,595

16

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	34,359		$	391,519		$	(31,640	)	$	394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			11,318			229,791			(31,640		)	209,469
Depreciation and amortization	—			12,641			51,975			—			64,616
Selling, general and administrative	9,212			714			19,505			—			29,431
Loss on disposals of  property and equipment	—			210			98			—			308
Total costs and expenses	9,212			24,883			301,369			(31,640		)	303,824
INCOME (LOSS) FROM OPERATIONS	(9,212		)	9,476			90,150			—			90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(18,581		)	(38		)	38			(18,581		)
Interest income	42			76			279			(38		)	359
Loss on debt extinguishment	—			—			—			—			—
Other - net	2,499			(2,468		)	(825		)	—			(794		)
Total other income (expense) - net	2,541			(20,973		)	(584		)	—			(19,016		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(6,671		)	(11,497		)	89,566			—			71,398
(Benefit) provision for income taxes	—			(2,328		)	12,540			(6,948		)	3,264
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(6,671		)	(9,169		)	77,026			6,948			68,134
DISCONTINUED OPERATIONS, NET OF TAX	—			—			—			—			—
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	74,805			30,388			—			(105,193		)	—
NET INCOME	$	68,134		$	21,219		$	77,026		$	(98,245	)	$	68,134

17

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	59,595		$	24,596		$	56,213	$	(80,809	)	$	59,595
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127			3,127			—		(3,127		)	3,127
Amortization of prior service credit	(723		)	(723		)	—		723			(723		)
	2,404			2,404			—		(2,404		)	2,404
COMPREHENSIVE INCOME	$	61,999		$	27,000		$	56,213	$	(83,213	)	$	61,999

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	68,134		$	21,219		$	77,026	$	(98,245	)	$	68,134
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	4,412			4,412			—		(4,412		)	4,412
Amortization of prior service credit	(784		)	(784		)	—		784			(784		)
	3,628			3,628			—		(3,628		)	3,628
COMPREHENSIVE INCOME	$	71,762		$	24,847		$	77,026	$	(101,873	)	$	71,762

18

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	67,801		$	287,495		$	290,409		$	(565,182	)	$	80,523
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(4,236		)	(528,282		)	—			(532,518		)
Proceeds  from  disposals  of  property,  plant  and  equipment	—			6,007			593			—			6,600
Investments in consolidated subsidiaries	—			(74,305		)	—			74,305			—
Net  cash  used  in  investing  activities	—			(72,534		)	(527,689		)	74,305			(525,918		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(16,893		)	(355,605		)	(42,684		)	415,182			—
Contributions from parent	—			—			74,305			(74,305		)	—
Proceeds from borrowings	—			793,380			—			—			793,380
Debt issue costs	—			(687		)	—			—			(687		)
Dividends paid	—			(75,000		)	(75,000		)	150,000			—
Excess tax benefits from share-based compensation	—			(563		)	—			—			(563		)
Proceeds  from exercise of share options	810			—			—			—			810
Net  cash  provided  by  (used  in)   financing  activities	(16,083		)	361,525			(43,379		)	490,877			792,940
INCREASE  (DECREASE)  IN  CASH  AND   CASH  EQUIVALENTS	51,718			576,486			(280,659		)	—			347,545
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	64,292			92,116			936,436			—			1,092,844
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	116,010		$	668,602		$	655,777		$	—		$	1,440,389

19

ROWAN COMPANIES PLC AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(5,076	)	$	(12,150	)	$	120,405		$	—		$	103,179
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(20,709		)	(91,256		)	—			(111,965		)
Proceeds  from  disposals  of  property,   plant  and  equipment	—			2,202			185			—			2,387
Investments in consolidated subsidiaries	—			(86,531		)	—			86,531			—
Net  cash  used  in  investing  activities	—			(105,038		)	(91,071		)	86,531			(109,578		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(4,249		)	155,193			(150,944		)	—			—
Contributions from parent	—			—			86,531			(86,531		)	—
Excess tax benefits from share-based compensation	—			112			—			—			112
Proceeds from exercise of share options	1,531			—			—			—			1,531
Net  cash  provided  by (used in)  financing  activities	(2,718		)	155,305			(64,413		)	(86,531		)	1,643
(DECREASE) INCREASE IN  CASH  AND  CASH  EQUIVALENTS	(7,794		)	38,117			(35,079		)	—			(4,756		)
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	58,628			228,085			737,295			—			1,024,008
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	50,834		$	266,202		$	702,216		$	—		$	1,019,252

20

ROWAN COMPANIES PLC AND SUBSIDIARIES

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW

Revenues for the three months ended March 31, 2014, were lower by approximately $17 million or 4% compared to the comparable prior-year period as a result of extended shipyard time for the Gorilla VI, and the delay in the return to service due to weather for the Gorilla VII following its shipyard stay for leg repairs. These two rigs together accounted for a $31 million decline in revenues between periods and lowered utilization for the high-specification jack-up class by five percentage points and total utilization by two percentage points. Our utilization and average day rates by rig classification were as follows:

	Three months ended March 31,
	2014			2013
Utilization: (1)
High specification jack-up (2)	83		%	94		%
Premium jack-up(3)	91		%	70		%
Conventional jack-up	33		%	19		%
Total fleet	80		%	80		%
Average day rate: (4)
High specification jack-up	$	199,848		$	201,944
Premium jack-up	$	116,802		$	97,975
Conventional jack-up	$	121,797		$	95,745
Total fleet	$	171,401		$	173,221
(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.

In the first quarter of 2014, the Company settled its litigation with the owners and operators of a tankerthat collided with the

EXL I in May 2012 and received $20.9 million in cash as compensation for damages incurred in 2012 for repair costs to and loss of use of the rig. The settlement was recognized during the quarter and reported as a component of operating income in the condensed consolidated statement of income.

In January 2014, we took delivery of the Rowan Renaissance, the first of our four new drillships. The Rowan Renaissance commenced drilling operations offshore West Africa under a three-year contract on April 22 at an effective day rate of $619,000. Our three remaining ultra-deepwater drillships under construction, the Rowan Resolute,Rowan Reliance, and Rowan Relentless, are scheduled for delivery in late June 2014, late October 2014, and March 2015, respectively. The Rowan Resolute has a three-year contract commencing in the US GOM in late September 2014 at an effective day rate of $608,000. The Rowan Reliance has a three-year contract commencing operations in the US GOM in late January 2015 at an effective day rate of $602,000, and the Rowan Relentless is not yet contracted.

As of April 23, 2014, the date of our most recent Fleet Status Report, we had six jack-ups in the North Sea, ten in the Middle East, seven in the US GOM including two cold-stacked, two in each of Malaysia, Trinidad, and Indonesia, and one in Egypt. As of that date, estimated contract expirations for our jack-up rigs were as follows: 2014 – 13; 2015 – 8; 2016 – 3; 2017 – 2; 2018 – 1; and 2024 – 1.

21

KEY PERFORMANCE MEASURES

The following table presents certain key performance measures for our fleet:

	Three months ended March 31,
	2014			2013
Revenues (in thousands):
North Sea	$	104,460		$	139,107
Middle East(1)	114,094			101,707
US GOM	62,362			50,263
Southeast Asia	52,266			50,640
Other international(2)	35,842			44,508
Subtotal - Day rate revenues	369,024			386,225
Other revenues(3)	8,578			8,013
Total revenues	$	377,602		$	394,238
Revenue-producing days:
North Sea	382			521
Middle East	839			751
US GOM	406			380
Southeast Asia	329			317
Other international	197			261
Total revenue-producing days	2,153			2,230
Average day rate:(4)
North Sea	$	273,612		$	267,174
Middle East	$	135,971		$	135,422
US GOM	$	153,601		$	132,445
Southeast Asia	$	158,703		$	159,657
Other international	$	182,151		$	170,339
Total fleet	$	171,401		$	173,221
Utilization:(5)
North Sea	71		%	96		%
Middle East	93		%	76		%
US GOM	64		%	60		%
Southeast Asia	92		%	88		%
Other international	73		%	97		%
Total fleet	80		%	80		%
(1) Our rigs operating in the Middle East are located in Saudi Arabia and Qatar. We also have a rig operating in Egypt, which is included in "Other international."
(2) "Other international" includes two rigs operating in Trinidad and one in Egypt.
(3) Other revenues, which are primarily revenues received for contract reimbursable costs, are excluded from the computation of average day rate.
(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.

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RESULTS OF OPERATIONS

Three months ended March 31, 2014, compared to three months ended March 31, 2013

Our operating results for the three months ended March 31, 2014 and 2013 are highlighted below (dollars in millions):

	Three months ended March 31, 2014					Three months ended March 31, 2013
	Amount			% of Revenues		Amount			% of Revenues
Revenues	$	377.6		100	%	$	394.2		100	%
Direct operating costs (excluding items below)	(220.4		)	-58	%	(209.5		)	-53	%
Depreciation expense	(70.9		)	-19	%	(64.6		)	-16	%
Selling, general and administrative expenses	(29.9		)	-8	%	(29.4		)	-7	%
Net loss on disposals of property and equipment	(0.8		)	—	%	(0.3		)	—	%
Litigation settlement	20.9			6	%	—			—	%
Operating income	$	76.5		20	%	$	90.4		23	%

Revenues for the three months ended March 31, 2014, decreased by $16.6 million or 4% compared to the three months ended March 31, 2013, as a result of the following (in millions):

	Increase (decrease)
Lower utilization	$	(13.3	)
Lower average day rates	(3.9		)
Revenues for reimbursable costs and other, net	0.6
Net decrease	$	(16.6	)

The number of revenue-producing days declined by 77 to 2,153 for the three months ended March 31, 2014, compared to the comparable prior year period. The decline in utilization was attributable to out-of-service time for the Gorilla VI and Gorilla VII. The Gorilla VI entered the shipyard in the second quarter 2013 for upgrades and inspections in preparation for its 3-1/2 year contract, which is expected to commence in early July 2014. The Gorilla VII was out of service from July 2013 through mid-February 2014, when it returned to work under contract. In July 2013, while the Gorilla VII was changing locations, the legs were severely damaged as the hull was being lowered into the water. Extended poor weather conditions in the North Sea hampered the rig's ability to return to work. The Gorilla VI and Gorilla VII accounted for a $31 million decline in revenues in the three months ended March 31, 2014, compared to the comparable prior-year period.

Operating costs for the three months ended March 31, 2014, increased by $10.9 million or 5% compared to the three months ended March 31, 2013 as a result of the following (in millions):

	Increase
Expansion of foreign shorebases	$	6.4
Other, net	4.5
Net increase	$	10.9

Our operating margin (revenues in excess of operating costs, other than depreciation, selling, general and administrative expenses and litigation settlement) was approximately 42% of revenues in the first quarter of 2014 compared to 47% in the first quarter of 2013.  Margins were unfavorably impacted as a result of out-of-service time for the Gorilla VI and Gorilla VII. Depreciation increased by $6.3 million or 10% compared to the first quarter of 2013 due to improvements to the fleet.

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Selling, general and administrative expenses were up less than 2% from the prior-year period.

In the first quarter of 2014, the Company settled its litigation with the owners and operators of a tanker that collided with the

EXL I in May 2012 and received $20.9 million in cash as compensation for damages incurred in 2012 for repair costs to and loss of use of the rig. Such amount was recognized as a component of operating income in the three months ended March 31, 2014.

Outlook

Our backlog by geographic area as of the date of our most recent Fleet Status Report compared to our backlog as reported in our 2013 Form 10-K, is set forth below. Backlog for the US GOM includes $1.3 billion attributable to drillships under construction (in millions):

	April 23, 2014		February 20, 2014
US GOM	$	1,828	$	1,861
North Sea	1,334		1,405
Middle East	1,213		1,029
West Africa	226		226
Southeast Asia	166		160
Other international	270		297
	$	5,037	$	4,978

We estimate our backlog will be realized as follows (in millions):

2014	$	1,171
2015	1,586
2016	1,168
2017	681
2018 and later years	431
	$	5,037

About 67% of our remaining available rig days in 2014 and 43% of available rig days in 2015 were under contract or commitment as of April 23, 2014. As of that date, we had 13 rigs with contract terms ending in 2014. Due to the high-quality nature of the Company's fleet, we continue to believe our rigs will be contracted at day rates equal to or higher than prior contract rates. Four of the 13 rigs with contract terms expiring in 2014 are under contract to Saudi Aramco. Although the Company has no indication to the contrary, failure to renew such contracts on favorable terms would significantly impact the company's results of operations and cash flow.

As of April 23, 2014, there were approximately 144 jack-up rigs under construction worldwide for delivery through 2017 (28% of the current jack-up fleet), including 39 that are considered high-specification (67% of the current high-specification fleet). The addition of these rigs to the worldwide fleet could impact the day rates received by the Company as existing contracts expire.

Out-of-Service Days – We define out-of-service days as those for which no revenues are recognized other than operational downtime and cold-stacked days. The Company may be compensated for certain out-of-service days, such as for shipyard stays or for rig transit periods preceding a contract; however, recognition of any such compensation is deferred and recognized over the period of drilling operations.

Our out-of-service days increased to approximately 13% of available rig days in the first quarter 2014, as compared to 10% in the fourth quarter2013 and 9% in the first quarter2013.  Out-of-service days were negatively impacted by the extended shipyard period for the Gorilla VI and the delay due to weather in the return to service for the Gorilla VII following its shipyard stay for leg repairs. We currently estimate out-of-service days for our jack-up fleet to range from 7% to 9% of available rig days for the remainder of 2014 for inspections and special surveys, customer required equipment upgrades and other equipment modifications.

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If rigs rolling off of contracts are mobilized to different operating regions, we will likely incur additional out-of-service time and other costs.

Operational Downtime– We define operational downtime as the unbillable time a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures. Our operational downtime, which is in addition to out-of-service days, was approximately 1% of in-service days for the three months ended March 31, 2014. We estimate operational downtime for our jack-up fleet will typically approximate 2.5% of operating days on a go-forward basis.

We estimate that operational downtime for our two ultra-deepwater drillships entering service in 2014 will be less than 5% following an initial break-in period of operations, which could range from approximately six months to one year, during which time the actual rate could be somewhat higher.

Other Matters – As the Company has expanded its operations internationally, the costs of complying with local laws and regulations have increased. We expect this trend of higher compliance costs, as well as higher costs due to wage pressures, to continue through 2014. Additionally, the Company has incurred substantial "off-rig" costs over the last several quarters in preparation of its entrance into the ultra-deepwater market. We expect the growth of such costs to moderate in 2014 and be offset by revenue from the commencement of operations of our first two ultra-deepwater drillships in 2014.

In the U.K., the government has published draft tax legislation that would limit the tax deduction available for bareboat charter leasing payments to associated persons with respect to offshore drilling rigs operating in the U.K. Continental Shelf. If enacted, such legislation would be effective retroactively from April 1, 2014, and would result in higher income taxes for our rigs operating in the U.K. sector of the North Sea. We expect to have three or four rigs working in the U.K. sector in 2014 that would be affected by the proposed legislation.

LIQUIDITY AND CAPITAL RESOURCES

A comparison of key balance sheet amounts and ratios follows (dollars in millions):

	March 31, 2014		December 31, 2013
Cash and cash equivalents	$	1,440.4	$	1,092.8
Current assets (excluding assets of discontinued operations)	$	1,880.3	$	1,505.1
Current liabilities (excluding liabilities of discontinued operations)	$	299.9	$	334.5
Current ratio (excluding assets and liabilities of discontinued operations)	6.27		4.50
Long-term debt	$	2,808.0	$	2,008.7
Shareholders' equity	$	4,956.8	$	4,893.8
Long-term debt/total capitalization	0.36		0.29

Sources and uses of cash and cash equivalents were as follows (in millions):

	Three months ended March 31,
	2014			2013
Net cash provided by operating activities	$	80.5		$	103.2
Capital expenditures	(532.5		)	(112.0		)
Proceeds from borrowings, net of issue costs	792.7			—
Proceeds from disposals of property and equipment	6.6			2.4
Proceeds from exercise of share options	0.8			1.5
Other	(0.6		)	0.1
Total net source (use)	$	347.5		$	(4.8	)

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Operating Cash Flows

Cash flows from operations decreased to approximately $81 million in the three months ended March 31, 2014, from $103 million in the comparable prior-year period due primarily to lower revenues.  

The Company has not provided deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including RCI's non-U.S. subsidiaries.  It is the Company’s policy and intention to permanently reinvest the earnings of non-U.S. subsidiaries of RCI outside the U.S.  Generally, earnings of non-U.K. subsidiaries that are not subsidiaries of RCI can be distributed to the Company without imposition of either U.K. or local country tax.

As of December 31, 2013, unremitted earnings of RCI’s non-U.S. subsidiaries were approximately $419 million.  Should the non-U.S. subsidiaries of RCI make a distribution from these earnings, we may be subject to additional U.S. income taxes.  It is not practicable to estimate the amount of deferred tax liability related to the undistributed earnings, and RCI's non-U.S. subsidiaries have no plan to distribute earnings in a manner that would cause them to be subject to U.S., U.K. or other local country taxation.

At March 31, 2014, RCI’s non-U.S. subsidiaries held approximately $453 million of the $1.4 billion of consolidated cash and cash equivalents.   The Company has significant net assets, liquidity, contract backlog and/or other financial resources available to meet its operational and capital investment requirements and otherwise allow us to continue to maintain our policy of reinvesting such undistributed earnings outside the U.K. and U.S. indefinitely.

Investing Activities

In January 2014, the Company took delivery of the first of four newly constructed drillships, the Rowan Renaissance, which commenced drilling operations offshore West Africa under a three-year contract in April 2014 at an effective day rate of $619,000. The Company's three remaining ultra-deepwater drillships under construction, the Rowan Resolute,Rowan Reliance, and Rowan Relentless, are scheduled for delivery in June 2014, October 2014, and March 2015, respectively. Reference should be made to Note 4 of Notes to Condensed Consolidated Financial Statements in this Form 10-Q for the status of our newbuild rig projects.

Capital expenditures totaled $532.5 million for the first three months of 2014, and included the following:

• $440.8 million towards construction of the ultra-deepwater drillships Rowan Renaissance, Rowan Resolute,Rowan Reliance and Rowan Relentless;

• $80.1 million for improvements to the existing fleet, including contractually required modifications; and

• $11.6 million for rig equipment inventory and other.

For the remainder of 2014, we expect our capital expenditures to be approximately $1.6 billion, including $1.1 billion towards construction of our four ultra-deepwater drillships, $162 million for mobilization, commissioning, riser gas-handling equipment, software certifications and drillship fleet spares to support our deepwater operations, $204 million for life enhancement projects and existing fleet maintenance capital, $50 million for partially reimbursed contractually required modifications to the fleet, and $55 million for equipment spares, drill pipe and improvements to our shore bases.

We expect to fund the three drillships currently under construction and other capital expenditures from available cash, cash flows from operations, and our revolving credit facility, if necessary.

Financing Activities

On January 15, 2014, we completed the issuance and sale in a public offering of $400 million aggregate principal amount of 4.75% Senior Notes due 2024, and $400 million aggregate principal amount of 5.85% Senior Notes due 2044.  Net proceeds of the offering were approximately $792 million, which the Company intends to use in its rig construction program and for general corporate purposes.

On January 23, 2014, the Company amended and restated its credit agreement to increase the borrowing capacity under the revolving credit facility from $750 million to $1.0 billion, among other things. There were no amounts drawn under the revolving credit facility at March 31, 2014.

Management expects to fund its cash requirements over the next twelve months from available cash and cash flows from operating activities and the revolving credit facility.

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Restrictive provisions in the Company’s credit agreement require the Company to maintain a minimum level of shareholders’ equity equal to no less than the 67% of the book value of outstanding debt.  We were in compliance with our debt covenants at March 31, 2014, and we do not expect to encounter difficulty complying in the following twelve-month period.

Critical Accounting Policies and Management Estimates

The Company’s significant accounting policies are presented in Note 2 of “Notes to Consolidated Financial Statements” in Item 8 of our 2013 Form 10-K.  These policies, and management judgments, assumptions and estimates made in their application underlie reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. We believe that our most critical accounting policies and management estimates involve carrying values of long-lived assets, pension and other postretirement benefit liabilities and costs (specifically, assumptions used in actuarial calculations), and income taxes (particularly our estimated reserves for uncertain tax positions), as changes in such policies and/or estimates would produce significantly different amounts from those reported herein.

During the quarter ended March 31, 2014, there were no material changes to the judgments, assumptions or policies upon which our critical accounting estimates were based.

Recent Accounting Standards

There have been no new accounting standards issued that are expected to have a material effect on the Company's financial statements upon adoption.

FORWARD-LOOKING STATEMENTS

Statements contained in this report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will,” “forecast,” “potential,” “outlook,” “scheduled,” “predict,” “will be,” “will continue,” “will likely,” “result,” and similar words and specifically include statements regarding expected financial performance; growth strategies; expected utilization, day rates, revenues, operating expenses, contract terms, contract backlog, capital expenditures, tax rates and positions, insurance coverages, access to financing and funding sources; the availability, delivery, mobilization, contract commencement, relocation or other movement of rigs and the timing thereof; future rig construction (including construction in progress and completion thereof), enhancement, upgrade or repair and costs and timing thereof; the suitability of rigs for future contracts; general market, business and industry conditions, trends and outlook; future operations; the impact of increasing regulatory  requirements and complexity; expected contributions from our new rigs and our entry into the ultra-deepwater market; expense management; the likely outcome of legal proceedings or insurance or other claims and the timing thereof; activity levels in the offshore drilling market; customer drilling programs; and commodity prices. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including:

• 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 or compliance obligations 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;

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• 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 and other losses;

• 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;

• changes or delays in 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;

• potential cost overruns or delays in delivery of our remaining drillships under construction, including delays in leaving the shipyard, delays or other issues relating to customer acceptance or readiness to drill;

• 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; our ability to seek and receive visas for our personnel to work in our areas of operation in a timely manner;

• governmental action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, strikes or outbreak or escalation of armed hostilities or other crises in oil or natural gas producing areas in which we operate, which may result in extended business interruptions, suspended operations, or 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 any of our areas of operations, including the Middle East and Egypt;

• 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 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, and the New York Stock Exchange.

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In addition to the risks, uncertainties and assumptions described above, you should also carefully read and consider the risk factors and forward-looking statement disclosure contained in our Annual Report on Form 10-K for the year ended December 31, 2013. We disclaim any obligation to update or revise any forward-looking statements except as required by applicable law or regulation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our outstanding debt at March 31, 2014, consisted entirely of fixed-rate debt with a carrying value of $2.808 billion and a weighted-average annual interest rate of 5.6%.  Due to the fixed-rate nature of our debt, we believe that our exposure to risk of earnings loss due to changes in market interest rates is not material.

We have a $1.0 billion revolving credit facility that expires in January 2019.  There were no borrowings outstanding under the facility at March 31, 2014.

The majority of our transactions are denominated in U.S. dollars, although a significant volume of transactions are conducted in British pounds. In order to reduce the impact of exchange rate fluctuations, we generally require customer payments to be in U.S. dollars and generally limit local currency holdings to the extent they are needed to pay liabilities denominated in local currencies.  In certain countries in which we operate, however, such as Egypt, local laws or contracts may require us to receive payment for a portion of the contract in the local currency.  In such instances, we may hold a greater amount of local currency than would otherwise be the case exposing us to devaluation and other risk of exchange loss.  

Fluctuating commodity prices affect our future earnings materially to the extent that they influence demand for our products and services.  As a general practice, we do not hold or issue derivative financial instruments and had no derivatives outstanding during the periods covered by this report.

Item 4. Controls and Procedures

Under the supervision and with the participation of our principal executive officer and principal financial officer, management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this report.  Based on that evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures were effective as of March 31, 2014.

There have been no changes to our internal control over financial reporting during the quarter ended March 31, 2014, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued an updated version of its Internal Control – Integrated Framework (2013 Framework). Originally issued in 1992, the framework helps organizations design, implement and evaluate the effectiveness of internal control concepts and simplify their use and application. The Company continues to use the 1992 Framework during the transition period, which extends to December 15, 2014, after which time COSO will consider it as superseded by the 2013 Framework.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

On May 2, 2012, while attempting to enter the Port of Corpus Christi Ship Channel, the tanker M/V FR8 PRIDE lost engine power and propulsion and collided with the Company’s EXL I rig causing extensive damage to the rig.  The Company filed suit in federal court against the M/V FR8 PRIDE and its owners and operators, seeking damages for repairs to the rig of approximately $12 million and estimated loss of use of the rig of $12.5 million. 

The parties entered into a binding settlement agreement on December 12, 2013, which resolved all of the damage claims on mutually agreeable terms.  During the first quarter of 2014, the final settlement and release agreement was executed and the Company received the settlement funds.

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Item 1A.  Risk Factors

Security holders and potential investors in our securities should carefully consider the risk factors set forth in our 2013 Annual Report on Form 10-K in addition to other information in such annual report and in our Quarterly Reports on Form 10-Q.  These risk factors are important factors that could cause our actual results to differ materially from those contained in any written or oral forward-looking statements made by us or on our behalf.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table presents information with respect to acquisitions of our shares for the first quarter of 2014:

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
January 31, 2014	1,325	$	35.02	—	24,987,408
February 28, 2014	26,508	$	31.48	—	24,987,408
March 31, 2014	58,260	$	33.46	—	24,987,408
Total	86,093	$	32.88	—
1 The total number of shares acquired includes (i) shares acquired from employees 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 first quarter of 2014.
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.

Restrictive provisions in the Company’s debt agreements require the Company to maintain a minimum level of shareholders’ equity equal to no less than the 67% of the book value of outstanding debt.  

On April 25, 2014, the Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on May 20, 2014, to shareholders of record at the close of business on May 5, 2014.

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Item 6.  Exhibits

The following is a list of exhibits filed with this Form 10-Q:

4.1	Indenture for Senior Debt Securities dated as of July 21, 2009, between Rowan Companies, Inc. and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K dated July 21, 2009 (File No. 1-5491).
4.2	Sixth Supplemental Indenture dated as of January 15, 2014, among Rowan Companies, Inc., Rowan Companies plc and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed on January 15, 2014 (File No. 1-5491).
4.3	Seventh Supplemental Indenture dated as of January 15, 2014, among Rowan Companies, Inc., Rowan Companies plc and U.S. Bank National Association, as trustee, incorporated by reference to Exhibit 4.3 of the Company’s Current Report on Form 8-K filed on January 15, 2014 (File No. 1-5491).
4.4	Form of 4.75% Senior Note due 2024, incorporated by reference to Exhibit 4.3 of the Company’s Current Report on Form 8-K filed on January 15, 2014 (File No. 1-5491).
4.5	Form of 5.85% Senior Note due 2044, incorporated by reference to Exhibit 4.4 of the Company’s Current Report on Form 8-K filed on January 15, 2014 (File No. 1-5491).
10.1	Amended and Restated Credit Agreement dated January 23, 2014 among Rowan Companies, Inc., as Borrower, Rowan Companies plc, as Parent, the Lenders named therein, Wells Fargo Bank, National Association, as Administrative Agent, Issuing Lender and Swingline Lender and Citibank, N.A., DnB Bank ASA, New York Branch, Royal Bank of Canada, Bank of America, N.A., Barclays Bank PLC and Goldman Sachs Bank USA, as Co-Syndication Agents, incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on January 28, 2014 (File No. 1-5491).
10.2	Amended and Restated Parent Guaranty dated as of January 23, 2014, by the Company, as Guarantor, in favor of Wells Fargo Bank, National Association, as Administrative Agent, incorporated by reference to Exhibit 10.12 of the Company’s Annual Report on Form 10-K filed on March 3, 2014 (File No. 1-5491).
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.

__________________

* Filed or furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ROWAN COMPANIES PLC
	(Registrant)
Date: May 12, 2014	/s/ J. KEVIN BARTOL
	J. Kevin Bartol
	Executive Vice President,
	Chief Financial Officer and Treasurer
Date: May 12, 2014	/s/ GREGORY M. HATFIELD
	Gregory M. Hatfield
	Vice President and Controller
	(Chief Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Thomas P. Burke, certify that:

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: May 12, 2014	/s/ THOMAS P. BURKE
	Thomas P. Burke
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, J. Kevin Bartol, certify that:

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: May 12, 2014	/s/ J. KEVIN BARTOL
	J. Kevin Bartol
	Executive Vice President, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U. S. C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Rowan Companies plc (the “Company”) on Form 10-Q for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas P. Burke, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(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: May 12, 2014	/s/ THOMAS P. BURKE
	Thomas P. Burke
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U. S. C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Rowan Companies plc (the “Company”) on Form 10-Q for the quarter ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, J. Kevin Bartol, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(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: May 12, 2014	/s/ J. KEVIN BARTOL
	J. Kevin Bartol
	Executive Vice President, Chief Financial Officer and Treasurer

XML

Guarantees of Registered Securities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 1,440,389	$ 1,019,252
Receivables - trade and other	383,636		344,546
Other current assets	56,234		67,675
Assets of discontinued operations	0		23,813
Total current assets	1,880,259		1,528,878
Property, plant and equipment - gross	8,716,205		8,197,715
Less accumulated depreciation and amortization	1,880,855		1,811,960
Property, plant and equipment - net	6,835,350		6,385,755
Investments in subsidiaries	0		0
Due from affiliates	0		0
Other assets	68,499		61,128
TOTAL ASSETS	8,784,108		7,975,761
CURRENT LIABILITIES:
Accounts payable - trade	100,088		123,976
Deferred revenues	41,013		54,515
Accrued liabilities	158,816		155,971
Liabilities of discontinued operations	0		20,122
Total current liabilities	299,917		354,584
Long-term debt	2,807,967		2,008,700
Due to affiliates	0		0
Other liabilities	288,942		289,061
Deferred income taxes - net	430,505		429,655
Shareholders' equity	4,956,777		4,893,761
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	8,784,108		7,975,761
Consolidating Income Statements
REVENUES	377,602	394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	220,369	209,469
Depreciation and amortization	70,873	64,616
Selling, general and administrative	29,875	29,431
Loss on disposals of property and equipment	803	308
Litigation settlement	(20,875)	0
Total costs and expenses	301,045	303,824
INCOME (LOSS) FROM OPERATIONS	76,557	90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	(20,960)	(18,581)
Interest income	587	359
Loss on extinguishment of debt		0
Other - net	(351)	(794)
Total other income (expense) - net	(20,724)	(19,016)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	55,833	71,398
(Benefit) provision for income taxes	281	3,264
NET INCOME FROM CONTINUING OPERATIONS	55,552	68,134
DISCONTINUED OPERATIONS, NET OF TAX	4,043	0
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	0	0
Net income	59,595	68,134
Statement of Comprehensive Income [Abstract]
Net income	59,595	68,134
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127	4,412
Amortization of prior service credit	(723)	(784)
OTHER COMPREHENSIVE INCOME	2,404	3,628
COMPREHENSIVE INCOME	61,999	71,762
Consolidated Statement of Cash Flows [Abstract]
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	80,523	103,179
INVESTING ACTIVITIES:
Property, plant and equipment additions	(532,518)	(111,965)
Proceeds from disposals of property, plant and equipment	6,600	2,387
Investments in consolidated subsidiaries	0	0
Net cash used in investing activities	(525,918)	(109,578)
FINANCING ACTIVITIES:
Advances (to) from affiliates	0	0
Contributions from parent	0	0
Proceeds from borrowings	793,380	0
Debt issue costs	(687)	0
Dividends paid	0
Excess tax benefits from share-based compensation	(563)	112
Proceeds from exercise of share options	810	1,531
Net cash provided by financing activities	792,940	1,643
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	347,545	(4,756)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,092,844	1,024,008
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,440,389	1,019,252
Rowan Companies plc (Parent) [Member]
CURRENT ASSETS:
Cash and cash equivalents	116,010	50,834
Receivables - trade and other	111		58
Other current assets	129		289
Assets of discontinued operations			0
Total current assets	116,250		64,639
Property, plant and equipment - gross	0		0
Less accumulated depreciation and amortization	0		0
Property, plant and equipment - net	0		0
Investments in subsidiaries	4,854,569		4,860,492
Due from affiliates	1		136
Other assets	0		0
TOTAL ASSETS	4,970,820		4,925,267
CURRENT LIABILITIES:
Accounts payable - trade	816		1,359
Deferred revenues	0		0
Accrued liabilities	0		0
Liabilities of discontinued operations			0
Total current liabilities	816		1,359
Long-term debt	0		0
Due to affiliates	4,983		22,012
Other liabilities	8,244		8,135
Deferred income taxes - net	0		0
Shareholders' equity	4,956,777		4,893,761
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,970,820		4,925,267
Consolidating Income Statements
REVENUES	0	0
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	0	0
Depreciation and amortization	0	0
Selling, general and administrative	5,820	9,212
Loss on disposals of property and equipment	0	0
Total costs and expenses	5,820	9,212
INCOME (LOSS) FROM OPERATIONS	(5,820)	(9,212)
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	0	0
Interest income	109	42
Loss on extinguishment of debt		0
Other - net	3,500	2,499
Total other income (expense) - net	3,609	2,541
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(2,211)	(6,671)
(Benefit) provision for income taxes	0	0
NET INCOME FROM CONTINUING OPERATIONS	(2,211)	(6,671)
DISCONTINUED OPERATIONS, NET OF TAX	0	0
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	61,806	74,805
Net income	59,595	68,134
Statement of Comprehensive Income [Abstract]
Net income	59,595	68,134
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127	4,412
Amortization of prior service credit	(723)	(784)
OTHER COMPREHENSIVE INCOME	2,404	3,628
COMPREHENSIVE INCOME	61,999	71,762
Consolidated Statement of Cash Flows [Abstract]
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	67,801	(5,076)
INVESTING ACTIVITIES:
Property, plant and equipment additions	0	0
Proceeds from disposals of property, plant and equipment	0	0
Investments in consolidated subsidiaries	0	0
Net cash used in investing activities	0	0
FINANCING ACTIVITIES:
Advances (to) from affiliates	(16,893)	(4,249)
Contributions from parent	0	0
Proceeds from borrowings	0
Debt issue costs	0
Dividends paid	0
Excess tax benefits from share-based compensation	0	0
Proceeds from exercise of share options	810	1,531
Net cash provided by financing activities	(16,083)	(2,718)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	51,718	(7,794)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	64,292	58,628
CASH AND CASH EQUIVALENTS, END OF PERIOD	116,010	50,834
RCI (Issuer) [Member]
CURRENT ASSETS:
Cash and cash equivalents	668,602	266,202
Receivables - trade and other	47,413		7,877
Other current assets	36,526		43,613
Assets of discontinued operations			23,813
Total current assets	752,541		167,419
Property, plant and equipment - gross	593,056		593,606
Less accumulated depreciation and amortization	247,682		243,666
Property, plant and equipment - net	345,374		349,940
Investments in subsidiaries	5,509,437		5,657,926
Due from affiliates	1,387,665		1,384,573
Other assets	67,790		60,343
TOTAL ASSETS	8,062,807		7,620,201
CURRENT LIABILITIES:
Accounts payable - trade	11,006		13,409
Deferred revenues	0		0
Accrued liabilities	97,336		105,421
Liabilities of discontinued operations			20,122
Total current liabilities	108,342		138,952
Long-term debt	2,807,967		2,008,700
Due to affiliates	221,305		502,139
Other liabilities	240,739		239,287
Deferred income taxes - net	427,840		421,622
Shareholders' equity	4,256,614		4,309,501
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	8,062,807		7,620,201
Consolidating Income Statements
REVENUES	16,162	34,359
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	3,156	11,318
Depreciation and amortization	4,562	12,641
Selling, general and administrative	1,229	714
Loss on disposals of property and equipment	17	210
Total costs and expenses	8,964	24,883
INCOME (LOSS) FROM OPERATIONS	7,198	9,476
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	(20,960)	(18,581)
Interest income	447	76
Loss on extinguishment of debt		0
Other - net	(3,494)	(2,468)
Total other income (expense) - net	(24,007)	(20,973)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(16,809)	(11,497)
(Benefit) provision for income taxes	(8,603)	(2,328)
NET INCOME FROM CONTINUING OPERATIONS	(8,206)	(9,169)
DISCONTINUED OPERATIONS, NET OF TAX	4,043	0
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	28,759	30,388
Net income	24,596	21,219
Statement of Comprehensive Income [Abstract]
Net income	24,596	21,219
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127	4,412
Amortization of prior service credit	(723)	(784)
OTHER COMPREHENSIVE INCOME	2,404	3,628
COMPREHENSIVE INCOME	27,000	24,847
Consolidated Statement of Cash Flows [Abstract]
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	287,495	(12,150)
INVESTING ACTIVITIES:
Property, plant and equipment additions	(4,236)	(20,709)
Proceeds from disposals of property, plant and equipment	6,007	2,202
Investments in consolidated subsidiaries	(74,305)	(86,531)
Net cash used in investing activities	(72,534)	(105,038)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(355,605)	155,193
Contributions from parent	0	0
Proceeds from borrowings	793,380
Debt issue costs	(687)
Dividends paid	(75,000)
Excess tax benefits from share-based compensation	(563)	112
Proceeds from exercise of share options	0	0
Net cash provided by financing activities	361,525	155,305
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	576,486	38,117
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	92,116	228,085
CASH AND CASH EQUIVALENTS, END OF PERIOD	668,602	266,202
Other non-guarantor subsidiaries [Member]
CURRENT ASSETS:
Cash and cash equivalents	655,777	702,216
Receivables - trade and other	336,112		336,611
Other current assets	19,579		23,773
Assets of discontinued operations			0
Total current assets	1,011,468		1,296,820
Property, plant and equipment - gross	8,123,149		7,604,109
Less accumulated depreciation and amortization	1,633,173		1,568,294
Property, plant and equipment - net	6,489,976		6,035,815
Investments in subsidiaries	0		0
Due from affiliates	223,155		506,455
Other assets	709		785
TOTAL ASSETS	7,725,308		7,839,875
CURRENT LIABILITIES:
Accounts payable - trade	88,266		109,208
Deferred revenues	41,013		54,515
Accrued liabilities	61,480		50,550
Liabilities of discontinued operations			0
Total current liabilities	190,759		214,273
Long-term debt	0		0
Due to affiliates	1,384,533		1,367,013
Other liabilities	39,959		41,639
Deferred income taxes - net	427,602		423,216
Shareholders' equity	5,682,455		5,793,734
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	7,725,308		7,839,875
Consolidating Income Statements
REVENUES	376,494	391,519
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	232,267	229,791
Depreciation and amortization	66,311	51,975
Selling, general and administrative	22,826	19,505
Loss on disposals of property and equipment	786	98
Litigation settlement	(20,875)
Total costs and expenses	301,315	301,369
INCOME (LOSS) FROM OPERATIONS	75,179	90,150
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	(240)	(38)
Interest income	271	279
Loss on extinguishment of debt		0
Other - net	(357)	(825)
Total other income (expense) - net	(326)	(584)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	74,853	89,566
(Benefit) provision for income taxes	18,640	12,540
NET INCOME FROM CONTINUING OPERATIONS	56,213	77,026
DISCONTINUED OPERATIONS, NET OF TAX	0	0
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	0	0
Net income	56,213	77,026
Statement of Comprehensive Income [Abstract]
Net income	56,213	77,026
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	0	0
Amortization of prior service credit	0	0
OTHER COMPREHENSIVE INCOME	0	0
COMPREHENSIVE INCOME	56,213	77,026
Consolidated Statement of Cash Flows [Abstract]
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	290,409	120,405
INVESTING ACTIVITIES:
Property, plant and equipment additions	(528,282)	(91,256)
Proceeds from disposals of property, plant and equipment	593	185
Investments in consolidated subsidiaries	0	0
Net cash used in investing activities	(527,689)	(91,071)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(42,684)	(150,944)
Contributions from parent	74,305	86,531
Proceeds from borrowings	0
Debt issue costs	0
Dividends paid	(75,000)
Excess tax benefits from share-based compensation	0	0
Proceeds from exercise of share options	0	0
Net cash provided by financing activities	(43,379)	(64,413)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(280,659)	(35,079)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	936,436	737,295
CASH AND CASH EQUIVALENTS, END OF PERIOD	655,777	702,216
Consolidating adjustments [Member]
CURRENT ASSETS:
Cash and cash equivalents	0	0
Receivables - trade and other	0		0
Other current assets	0		0
Assets of discontinued operations			0
Total current assets	0		0
Property, plant and equipment - gross	0		0
Less accumulated depreciation and amortization	0		0
Property, plant and equipment - net	0		0
Investments in subsidiaries	(10,364,006)		(10,518,418)
Due from affiliates	(1,610,821)		(1,891,164)
Other assets	0		0
TOTAL ASSETS	(11,974,827)		(12,409,582)
CURRENT LIABILITIES:
Accounts payable - trade	0		0
Deferred revenues	0		0
Accrued liabilities	0		0
Liabilities of discontinued operations			0
Total current liabilities	0		0
Long-term debt	0		0
Due to affiliates	(1,610,821)		(1,891,164)
Other liabilities	0		0
Deferred income taxes - net	(424,937)		(415,183)
Shareholders' equity	(9,939,069)		(10,103,235)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(11,974,827)		(12,409,582)
Consolidating Income Statements
REVENUES	(15,054)	(31,640)
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	(15,054)	(31,640)
Depreciation and amortization	0	0
Selling, general and administrative	0	0
Loss on disposals of property and equipment	0	0
Total costs and expenses	(15,054)	(31,640)
INCOME (LOSS) FROM OPERATIONS	0	0
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	240	38
Interest income	(240)	(38)
Loss on extinguishment of debt		0
Other - net	0	0
Total other income (expense) - net	0	0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	0	0
(Benefit) provision for income taxes	(9,756)	(6,948)
NET INCOME FROM CONTINUING OPERATIONS	9,756	6,948
DISCONTINUED OPERATIONS, NET OF TAX	0	0
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	(90,565)	(105,193)
Net income	(80,809)	(98,245)
Statement of Comprehensive Income [Abstract]
Net income	(80,809)	(98,245)
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	(3,127)	(4,412)
Amortization of prior service credit	723	784
OTHER COMPREHENSIVE INCOME	(2,404)	(3,628)
COMPREHENSIVE INCOME	(83,213)	(101,873)
Consolidated Statement of Cash Flows [Abstract]
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(565,182)	0
INVESTING ACTIVITIES:
Property, plant and equipment additions	0	0
Proceeds from disposals of property, plant and equipment	0	0
Investments in consolidated subsidiaries	74,305	86,531
Net cash used in investing activities	74,305	86,531
FINANCING ACTIVITIES:
Advances (to) from affiliates	415,182	0
Contributions from parent	(74,305)	(86,531)
Proceeds from borrowings	0
Debt issue costs	0
Dividends paid	150,000
Excess tax benefits from share-based compensation	0	0
Proceeds from exercise of share options	0	0
Net cash provided by financing activities	490,877	(86,531)
INCREASE (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

XML

Commitments and Contingent Liabilities (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2009
Status of company's rigs under construction [Abstract]
Total estimated project costs	$ 2,961
Total costs incurred through March 31, 2014	1,366
Projected costs for the remainder of 2014	1,130
Projected costs in 2015	465
Total future costs	1,595
Capital expenditures for the remainder of 2013	162
Outstanding letters of credit	28.7
Tax benefit recognized		25.4
Rowan Renaissance [Member]
Status of company's rigs under construction [Abstract]
Total estimated project costs	724
Total costs incurred through March 31, 2014	650
Projected costs for the remainder of 2014	74
Projected costs in 2015	0
Total future costs	74
Rowan Resolute [Member]
Status of company's rigs under construction [Abstract]
Total estimated project costs	742
Total costs incurred through March 31, 2014	306
Projected costs for the remainder of 2014	436
Projected costs in 2015	0
Total future costs	436
Rowan Reliance [Member]
Status of company's rigs under construction [Abstract]
Total estimated project costs	743
Total costs incurred through March 31, 2014	216
Projected costs for the remainder of 2014	520
Projected costs in 2015	7
Total future costs	527
Rowan Relentless [Member]
Status of company's rigs under construction [Abstract]
Total estimated project costs	752
Total costs incurred through March 31, 2014	194
Projected costs for the remainder of 2014	100
Projected costs in 2015	458
Total future costs	$ 558

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Retirement benefit adjustments, taxes	$ 1,287	$ 1,953

XML

Other Financial Statement Disclosures (Estimated Fair Values and Related Carrying Values of Long-term Debt Securities) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Fair value [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	$ 2,953,284	$ 2,117,474
Fair value [Member] | Senior Notes due 2017 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	436,373	433,879
Fair value [Member] | Senior Notes Due 2019 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	602,848	603,177
Fair value [Member] | Senior Notes due 2022 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	724,994	711,816
Fair value [Member] | Senior Notes due 2024 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	404,660	0
Fair value [Member] | Senior Notes Due 2042 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	381,005	368,602
Fair value [Member] | Senior Notes due 2044 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	403,404	0
Carrying value [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	2,807,967	2,008,700
Carrying value [Member] | Senior Notes due 2017 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	399,031	398,961
Carrying value [Member] | Senior Notes Due 2019 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	498,252	498,171
Carrying value [Member] | Senior Notes due 2022 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	712,821	713,208
Carrying value [Member] | Senior Notes due 2024 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	399,600	0
Carrying value [Member] | Senior Notes Due 2042 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	398,374	398,360
Carrying value [Member] | Senior Notes due 2044 [Member]
Fair values of Financial Instruments [Abstract]
Notes notes	$ 399,889	$ 0

XML

Other Financial Statement Disclosures (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Recurring basis [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	$ 1,381,632	$ 1,063,500
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	0	0
Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	$ 1,381,632	$ 1,063,500

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Other Financial Statement Disclosures (Narrative) (Details) (USD $)	3 Months Ended				3 Months Ended				0 Months Ended			1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jan. 23, 2014	Dec. 31, 2013	Mar. 31, 2014 Accumulated Other Comprehensive Income (Loss) [Member]	Mar. 31, 2013 Accumulated Other Comprehensive Income (Loss) [Member]	Mar. 31, 2014 Minimum [Member] broker	Mar. 31, 2014 Maximum [Member] broker	Jan. 15, 2014 Subsidiary Issuer [Member]	Jan. 15, 2014 Senior Notes due 2024 [Member] Subsidiary Issuer [Member]	Jan. 15, 2014 Senior Notes due 2044 [Member] Subsidiary Issuer [Member]	Feb. 28, 2014 Rowan land rig [Member]	Apr. 28, 2014 Rowan land rig [Member]
Assets of Discontinued Operations
Net carrying value of disposed rig													$ 24,200,000
Assets of discontinued operations	0			23,813,000									4,100,000
Deferred revenues classified as liabilities of discontinued operations													20,100,000
Proceeds from sale of rig												6,000,000
Gain (loss) on disposals of property and equipment												4,000,000
Long-term Debt
Subsidiary ownership percentage by parent									100.00%
Principal amount of offering										400,000,000	400,000,000
Stated interest rate percentage										4.75%	5.85%
Debt instrument, issue amount as percentage of principal										99.898%	99.972%
Proceeds from issuance of debt									792,000,000
Redemption price, percentage of principal amount	100.00%
Borrowing capacity			1,000,000,000.0	750,000,000
Fair Values of Financial Instruments
Number of brokers who provided fair value of debt securities							1	2
Accumulated Other Comprehensive Loss
Accumulated other comprehensive losses (AOCL)	140,328,000			142,445,000	140,300,000	217,500,000
Amortization of pension and postretirement benefit cost	2,404,000	3,628,000			2,404,000	3,628,000
Supplemental Cash Flow Information [Abstract]
Accrued capital expenditures	39,000,000	24,500,000
Interest capitalized in connection with rig construction projects	17,500,000	10,700,000
Litigation Settlement
Proceeds from litigation settlements	$ 20,900,000

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Guarantees of Registered Securities (Narrative) (Details) (RCI (Issuer) [Member])	3 Months Ended
	Mar. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Subsidiary ownership percentage by parent	100.00%
Senior Notes due 2017 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	5.00%
Senior Notes due 2019 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	7.875%
Senior Notes due 2022 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	4.875%
Senior Notes due 2024 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	4.75%
Senior Notes due 2042 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	5.40%
Senior Notes due 2044 [Member] | Unsecured debt [Member]
Condensed Financial Statements, Captions [Line Items]
Stated interest rate percentage	5.85%

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) In Thousands, unless otherwise specified	Total	Class A ordinary shares/ Common stock [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Treasury shares [Member]	Accumulated other comprehensive income (loss) [Member]
Balance at Dec. 31, 2012	$ 4,531,724	$ 15,593	$ 1,372,135	$ 3,366,964	$ (1,886)	$ (221,082)
Balance (in shares) at Dec. 31, 2012		124,211
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares issued (acquired) under share-based compensation plans	(3,028)	1	1,083	0	(4,112)	0
Net shares issued (acquired) under share-based compensation plans (in shares)		(43)
Share-based compensation	5,575	0	5,575	0	0	0
Excess tax benefit from share-based compensation plans	112	0	112	0	0	0
Retirement benefit adjustments, net of taxes	3,628	0	0	0	0	3,628
Net income	68,134	0	0	68,134	0	0
Balance at Mar. 31, 2013	4,606,145	15,594	1,378,905	3,435,098	(5,998)	(217,454)
Balance (in shares) at Mar. 31, 2013		124,168
Balance at Dec. 31, 2013	4,893,761	15,597	1,407,031	3,619,540	(5,962)	(142,445)
Balance (in shares) at Dec. 31, 2013		124,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares issued (acquired) under share-based compensation plans	(3,850)	2	529	0	(4,381)	0
Net shares issued (acquired) under share-based compensation plans (in shares)		78
Share-based compensation	5,717	0	5,717	0	0	0
Excess tax benefit from share-based compensation plans	(563)	0	(563)	0	0	0
Retirement benefit adjustments, net of taxes	2,404	0	0	0	0	2,404
Other	(287)	0	0	0	0	(287)
Net income	59,595	0	0	59,595	0	0
Balance at Mar. 31, 2014	$ 4,956,777	$ 15,599	$ 1,412,714	$ 3,679,135	$ (10,343)	$ (140,328)
Balance (in shares) at Mar. 31, 2014		124,315

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Guarantees of Registered Securities (Prior Period Adjustments) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Consolidating Balance Sheets
Other current assets	$ 56,234	$ 67,675
Due from affiliates	0	0
Accrued liabilities	158,816	155,971
Due to affiliates	0	0
Other liabilities (noncurrent)	288,942	289,061
Deferred income taxes - net	430,505	429,655
Retained earnings	3,679,135	3,619,540
RCI (Issuer) [Member]
Consolidating Balance Sheets
Other current assets	36,526	43,613
Due from affiliates	1,387,665	1,384,573
Accrued liabilities	97,336	105,421
Due to affiliates	221,305	502,139
Other liabilities (noncurrent)	240,739	239,287
Deferred income taxes - net	427,840	421,622
RCI (Issuer) [Member] | As reported [Member]
Consolidating Balance Sheets
Other current assets		45,031
Due from affiliates		1,439,112
Accrued liabilities		101,478
Due to affiliates		575,184
Other liabilities (noncurrent)		194,966
Deferred income taxes - net		126,681
Retained earnings		4,795,441
RCI (Issuer) [Member] | As corrected [Member]
Consolidating Balance Sheets
Other current assets		43,611
Due from affiliates		1,436,736
Accrued liabilities		99,102
Due to affiliates		546,690
Other liabilities (noncurrent)		235,779
Deferred income taxes - net		115,376
Retained earnings		4,793,007
Other non-guarantor subsidiaries [Member]
Consolidating Balance Sheets
Other current assets	19,579	23,773
Due from affiliates	223,155	506,455
Accrued liabilities	61,480	50,550
Due to affiliates	1,384,533	1,367,013
Other liabilities (noncurrent)	39,959	41,639
Deferred income taxes - net	427,602	423,216
Other non-guarantor subsidiaries [Member] | As reported [Member]
Consolidating Balance Sheets
Other current assets		22,355
Due from affiliates		579,501
Accrued liabilities		54,493
Due to affiliates		1,421,553
Other liabilities (noncurrent)		85,960
Deferred income taxes - net		302,974
Retained earnings		5,908,071
Other non-guarantor subsidiaries [Member] | As corrected [Member]
Consolidating Balance Sheets
Other current assets		23,775
Due from affiliates		542,331
Accrued liabilities		56,869
Due to affiliates		1,410,501
Other liabilities (noncurrent)		45,147
Deferred income taxes - net		314,279
Retained earnings		$ 5,910,505

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 1,440,389	$ 1,092,844
Receivables - trade and other	383,636	344,546
Prepaid expenses and other current assets	33,333	45,538
Deferred tax assets - net	22,901	22,137
Assets of discontinued operations	0	23,813
Total current assets	1,880,259	1,528,878
PROPERTY, PLANT AND EQUIPMENT:
Drilling equipment	7,115,357	7,040,451
Construction in progress	1,448,161	1,009,380
Other property and equipment	152,687	147,884
Property, plant and equipment - gross	8,716,205	8,197,715
Less accumulated depreciation and amortization	1,880,855	1,811,960
Property, plant and equipment - net	6,835,350	6,385,755
Other assets	68,499	61,128
TOTAL ASSETS	8,784,108	7,975,761
CURRENT LIABILITIES:
Accounts payable - trade	100,088	123,976
Deferred revenues	41,013	54,515
Accrued pension and other postretirement benefits	43,551	49,659
Accrued compensation and related employee costs	52,774	59,096
Accrued income taxes	17,596	8,374
Accrued interest	35,363	27,841
Other current liabilities	9,532	11,001
Liabilities of discontinued operations	0	20,122
Total current liabilities	299,917	354,584
Long-term debt	2,807,967	2,008,700
Other liabilities	288,942	289,061
Deferred income taxes - net	430,505	429,655
Commitments and contingent liabilities (Note 4)	0	0
SHAREHOLDERS' EQUITY:
Class A Ordinary Shares, $0.125 par value, 124,793,407 and 124,778,407 shares issued at March 31, 2014, and December 31, 2013, respectively	15,599	15,597
Additional paid-in capital	1,412,714	1,407,031
Retained earnings	3,679,135	3,619,540
Cost of 478,465 and 542,475 treasury shares at March 31, 2014, and December 31, 2013, respectively	(10,343)	(5,962)
Accumulated other comprehensive loss	(140,328)	(142,445)
Total shareholders' equity	4,956,777	4,893,761
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 8,784,108	$ 7,975,761

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Pension and other postretirement benefit adjustments, income tax expense (benefit)	$ 1,287	$ 1,953

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Basis of Presentation and Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2014 drilling_unit
Gas and Oil Acreage [Line Items]
Number of fleet of self-elevating mobile offshore jack-up drilling units	30
Number of ultra-deepwater drill ships under construction	3
Rowan Renaissance [Member]
Gas and Oil Acreage [Line Items]
Ultra-deepwater drill ships expected to be completed, contract term after delivery	3 years
Rowan Resolute [Member]
Gas and Oil Acreage [Line Items]
Ultra-deepwater drill ships expected to be completed, contract term after delivery	3 years
Rowan Reliance [Member]
Gas and Oil Acreage [Line Items]
Ultra-deepwater drill ships expected to be completed, contract term after delivery	3 years

XML

Pension and Other Postretirement Benefits (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Contribution to pension and other postretirement benefit plans	$ 7,300,000
Future contributions to pension and other postretirement benefit plans	48,000,000
Defined Benefit Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	3,620,000	2,850,000
Interest cost	8,092,000	7,307,000
Expected return on plan assets	(10,251,000)	(9,461,000)
Amortization of net loss	4,231,000	6,774,000
Amortization of prior service credit	(1,110,000)	(1,168,000)
Total net pension cost and other postretirement benefit cost	4,582,000	6,302,000
Other Postretirement Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	267,000	352,000
Interest cost	757,000	714,000
Amortization of net loss	(39,000)	0
Amortization of prior service credit	(8,000)	(36,000)
Total net pension cost and other postretirement benefit cost	$ 977,000	$ 1,030,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH PROVIDED BY OPERATIONS:
Net income	$ 59,595	$ 68,134
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	70,873	64,616
Deferred income taxes	(1,489)	(396)
Provision for pension and postretirement benefits	6,170	7,332
Share-based compensation expense	7,547	7,530
(Gain) loss on disposals of property, plant and equipment	(1,110)	308
Postretirement benefit claims paid	(894)	(881)
Contributions to pension plans	(6,448)	(249)
Changes in current assets and liabilities:
Receivables - trade and other	(39,090)	(15,081)
Prepaid expenses and other current assets	12,248	9,339
Accounts payable	(13,637)	(1,655)
Accrued income taxes	9,222	(11,950)
Deferred revenues	(13,502)	(2,090)
Other current liabilities	(11,037)	(23,778)
Net changes in other noncurrent assets and liabilities	2,075	2,000
Net cash provided by operations	80,523	103,179
CASH USED IN INVESTING ACTIVITIES:
Capital expenditures	(532,518)	(111,965)
Proceeds from disposals of property, plant and equipment	6,600	2,387
Net cash used in investing activities	(525,918)	(109,578)
CASH PROVIDED BY FINANCING ACTIVITIES:
Proceeds from borrowings	793,380	0
Debt issue costs	(687)	0
Excess tax benefits from share-based compensation	(563)	112
Proceeds from exercise of share options	810	1,531
Net cash provided by financing activities	792,940	1,643
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	347,545	(4,756)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,092,844	1,024,008
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 1,440,389	$ 1,019,252

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
SHAREHOLDERS' EQUITY:
Treasury shares (in shares)	478,465	542,475
Common Class A [Member]
SHAREHOLDERS' EQUITY:
Common stock, par value (in dollars per share)	$ 0.125	$ 0.125
Common stock, shares issued (in shares)	124,793,407	124,778,407

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Earnings per Share

A reconciliation of basic and diluted shares follows (in thousands):

	Three months ended March 31,
	2014	2013
Average common shares outstanding - basic	123,707	123,222
Effect of dilutive securities - share-based compensation	970	980
Average common shares - diluted	124,677	124,202

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):

	Three months ended March 31,
	2014	2013
Share appreciation rights	1,066	1,022
Employee and director share options	42	42
Total potentially dilutive shares	1,108	1,064

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	ROWAN COMPANIES PLC
Entity Central Index Key	0000085408
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		124,363,044
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014

XML

Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2014

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):

	Three months ended March 31,
	2014			2013
Service cost	$	3,620		$	2,850
Interest cost	8,092			7,307
Expected return on plan assets	(10,251		)	(9,461		)
Amortization of net loss	4,231			6,774
Amortization of prior service credit	(1,110		)	(1,168		)
Total net pension cost	$	4,582		$	6,302

Recognized other postretirement benefit cost included the following components (in thousands):

	Three months ended March 31,
	2014			2013
Service cost	$	267		$	352
Interest cost	757			714
Amortization of net loss	(39		)	—
Amortization of prior service credit	(8		)	(36		)
Total other postretirement benefit cost	$	977		$	1,030

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
REVENUES	$ 377,602	$ 394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	220,369	209,469
Depreciation and amortization	70,873	64,616
Selling, general and administrative	29,875	29,431
Loss on disposals of property and equipment	803	308
Litigation settlement	(20,875)	0
Total costs and expenses	301,045	303,824
INCOME (LOSS) FROM OPERATIONS	76,557	90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	(20,960)	(18,581)
Interest income	587	359
Other - net	(351)	(794)
Total other income (expense) - net	(20,724)	(19,016)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	55,833	71,398
Provision for income taxes	281	3,264
NET INCOME FROM CONTINUING OPERATIONS	55,552	68,134
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX	4,043	0
NET INCOME	$ 59,595	$ 68,134
INCOME PER SHARE - BASIC:
Income from continuing operations (in dollars per share)	$ 0.45	$ 0.55
Discontinued operations (in dollars per share)	$ 0.03	$ 0.00
Net income (in dollars per share)	$ 0.48	$ 0.55
INCOME PER SHARE - DILUTED:
Income from continuing operations (in dollars per share)	$ 0.45	$ 0.55
Discontinued operations (in dollars per share)	$ 0.03	$ 0.00
Net income (in dollars per share)	$ 0.48	$ 0.55

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Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2014

Pension and Other Postretirement Benefit Expense [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.

Recognized net periodic pension cost included the following components (in thousands):

	Three months ended March 31,
	2014			2013
Service cost	$	3,620		$	2,850
Interest cost	8,092			7,307
Expected return on plan assets	(10,251		)	(9,461		)
Amortization of net loss	4,231			6,774
Amortization of prior service credit	(1,110		)	(1,168		)
Total net pension cost	$	4,582		$	6,302

Recognized other postretirement benefit cost included the following components (in thousands):

	Three months ended March 31,
	2014			2013
Service cost	$	267		$	352
Interest cost	757			714
Amortization of net loss	(39		)	—
Amortization of prior service credit	(8		)	(36		)
Total other postretirement benefit cost	$	977		$	1,030

During the three months ended March 31, 2014, the Company contributed $7.3 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $48 million for the remainder of 2014.

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A reconciliation of basic and diluted shares follows (in thousands):

	Three months ended March 31,
	2014	2013
Average common shares outstanding - basic	123,707	123,222
Effect of dilutive securities - share-based compensation	970	980
Average common shares - diluted	124,677	124,202

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):

	Three months ended March 31,
	2014	2013
Share appreciation rights	1,066	1,022
Employee and director share options	42	42
Total potentially dilutive shares	1,108	1,064

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Earnings Per Share (Details) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]
Average common shares outstanding - basic (in shares)	123,707	123,222
Effect of dilutive securities - share-based compensation (in shares)	970	980
Average common shares - diluted (in shares)	124,677	124,202
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	1,108	1,064
Share appreciation rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	1,066	1,022
Employee and director share options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	42	42

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Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Status of Company's Rigs under Construction

The following table presents the status of the Company’s ultra-deepwater drillship construction program as of March 31, 2014.  Amounts include capitalized interest and an estimate for project contingencies (in millions):

	Actual/scheduled delivery date	Total estimated project costs		Total costs incurred through March 31, 2014		Projected costs for the remainder of 2014		Projected costs in 2015		Total future costs
Rowan Renaissance	January 2014	$	724	$	650	$	74	$	—	$	74
Rowan Resolute	June 2014	742		306		436		—		436
Rowan Reliance	October 2014	743		216		520		7		527
Rowan Relentless	March 2015	752		194		100		458		558
		$	2,961	$	1,366	$	1,130	$	465	$	1,595

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Other Financial Statement Disclosures

3 Months Ended

Mar. 31, 2014

Other Financial Statement Disclosures [Abstract]

Other Financial Statement Disclosures

Other Financial Statement Disclosures

Accounts Receivable – The following table sets forth the components of Receivables - trade and other (in thousands):

	March 31, 2014		December 31, 2013
Trade	$	323,948	$	323,679
Income tax	46,852		6,759
Other	12,836		14,108
Total receivables - trade and other	$	383,636	$	344,546

Assets of Discontinued Operations – In February 2014, the Company sold a land rig it retained in the 2011 sale of its manufacturing operations. The net carrying value was $4.1 million, consisting of a $24.2 million asset previously classified as assets of discontinued operations, less $20.1 million of deferred revenues previously classified as liabilities of discontinued operations. The Company received $6.0 million in cash resulting in a $4.0 million gain, net of tax effects. The gain is classified as discontinued operations in the condensed consolidated statement of income for the three months ended March 31, 2014.

Long-term Debt – On January 15, 2014, Rowan plc, as guarantor, and its 100%-owned subsidiary, Rowan Companies, Inc. ("RCI"), as issuer, completed the issuance and sale in a public offering of $400 million aggregate principal amount of 4.75% Senior Notes due 2024 at a price to the public of 99.898% of the principal amount (the "2024 Notes"), and $400 million aggregate principal amount of 5.85% Senior Notes due 2044 at a price to the public of 99.972% of the principal amount (the "2044 Notes," and together, the "notes").  Net proceeds of the offering were approximately $792 million, which the Company intends to use in its rig construction program and for general corporate purposes.

Interest on the notes is payable on January 15 and July 15 of each year, beginning on July 15, 2014. No principal payments are due with respect to the 2024 Notes or the 2044 Notes until their final maturity date of January 15, 2024 and 2044, respectively.

The notes are redeemable in whole or in part at any time at a price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date for redemptions prior to October 15, 2023, with respect to the 2024 Notes, and prior to July 15, 2043, with respect to the 2044 Notes. On or after such dates, the notes may be redeemed at a price of 100% plus accrued and unpaid interest to the redemption date.

The notes are fully and unconditionally guaranteed on a senior and unsecured basis by Rowan plc.

On January 23, 2014, the Company amended and restated its credit agreement to increase the borrowing capacity under the revolving credit facility from $750 million to $1.0 billion, among other things. There were no amounts drawn under the revolving credit facility at March 31, 2014.

Fair Values of Financial Instruments – 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.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. Assets and liabilities measured at fair value are summarized below (in thousands):

			Estimated fair value measurements
	Carrying value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2014:
Assets - cash equivalents	$	1,381,632	$	1,381,632	$	—	$	—
December 31, 2013:
Assets - cash equivalents	$	1,063,500	$	1,063,500	$	—	$	—

Trade receivables and trade payables, which are also required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities.

Those financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities.  Fair values of the Company’s debt securities were provided by one to two brokers who make a market in our debt securities and were measured using a market-approach valuation technique.  Fair value was determined by adding a spread based on actual trades for that security (or a trader quote where actual trades were unavailable) to the applicable benchmark Treasury security with a comparable maturity, in order to derive a current yield.  The yield is then used to determine a price given the individual security’s coupon rate and maturity.  Such inputs are considered “significant other observable inputs,” which are categorized as Level 2 inputs in the fair value hierarchy.  Estimated fair values and related carrying values of our long-term debt securities are shown below (in thousands):

	March 31, 2014				December 31, 2013
	Fair value		Carrying value		Fair value		Carrying value
5% Senior Notes, due 2017	$	436,373	$	399,031	$	433,879	$	398,961
7.875% Senior Notes, due 2019	602,848		498,252		603,177		498,171
4.875% Senior Notes, due 2022	724,994		712,821		711,816		713,208
4.75% Senior Notes, due 2024	404,660		399,600		—		—
5.4% Senior Notes, due 2042	381,005		398,374		368,602		398,360
5.85% Senior Notes, due 2044	403,404		399,889		—		—
	$	2,953,284	$	2,807,967	$	2,117,474	$	2,008,700

Accumulated Other Comprehensive Loss – The Company had accumulated other comprehensive losses (AOCL) totaling $140.3 million and $217.5 million at March 31, 2014 and 2013, respectively, all of which were solely attributable to pension and other postretirement benefits.  All amounts reclassified from AOCL during the three months ended March 31, 2014 and 2013, were attributable to amortization of pension and postretirement benefit cost and totaled $2.4 million and $3.6 million for each period, respectively, net of tax (see Note 3).

Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $39.0 million and $24.5 million at March 31, 2014 and 2013, respectively.  Interest capitalized in connection with rig construction projects totaled $17.5 million and $10.7 million in the three months ended March 31, 2014 and 2013.

Income Taxes – In accordance with US GAAP for interim reporting, the Company estimates its full-year effective tax rate and applies this rate to its year-to-date pretax income.  In addition, the Company separately calculates the tax impact of unusual items, if any. We provide for income taxes based upon the tax laws and rates in effect in the countries in which we conduct operations. The amounts of our provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Our overall effective tax rate may therefore vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations and other factors.

The Company has not provided deferred income taxes on undistributed earnings of its non-U.K. subsidiaries, including non-U.S. subsidiaries of RCI.  It is the Company’s policy and intention to permanently reinvest the earnings of non-U.S. subsidiaries of RCI outside the U.S.  Generally, earnings of non-U.K. subsidiaries that are not subsidiaries of RCI can be distributed to the Company without imposition of either U.K. or local country tax.

Litigation Settlement – In the first quarter of 2014, the Company settled its litigation with the owners and operators of a tanker that collided with the EXL I in May 2012 and received $20.9 million in cash as compensation for damages incurred in 2012 for repair costs to and loss of use of the rig. Such amount was recognized as a component of operating income in the three months ended March 31, 2014.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

The following table presents the status of the Company’s ultra-deepwater drillship construction program as of March 31, 2014.  Amounts include capitalized interest and an estimate for project contingencies (in millions):

	Actual/scheduled delivery date	Total estimated project costs		Total costs incurred through March 31, 2014		Projected costs for the remainder of 2014		Projected costs in 2015		Total future costs
Rowan Renaissance	January 2014	$	724	$	650	$	74	$	—	$	74
Rowan Resolute	June 2014	742		306		436		—		436
Rowan Reliance	October 2014	743		216		520		7		527
Rowan Relentless	March 2015	752		194		100		458		558
		$	2,961	$	1,366	$	1,130	$	465	$	1,595

In addition, the Company expects to incur approximately $162 million of capital expenditures for the remainder of 2014 for mobilization, commissioning, riser gas-handling equipment, software certifications and drillship fleet spares to support its deepwater operations.

The Company periodically employs letters of credit in the normal course of its business, and had outstanding letters of credit of approximately $28.7 million at March 31, 2014.

Uncertain tax positions – In 2009, the Company recognized a $25.4 million tax benefit as a result of applying the facts of a third-party tax case to the Company’s situation.  That case provided a more favorable tax treatment for certain foreign contracts entered into in prior years.  This position is currently under audit and has been challenged by field agents of the U.S. Internal Revenue Service.  We have appealed their findings and expect to come to a conclusion within the next twelve months.  We plan to vigorously defend our position and continue to believe that we will more likely than not prevail.

We are involved in various other legal proceedings incidental to our business and are vigorously defending our position in all such matters.  Management believes that there are no known contingencies, claims or lawsuits, other than those described above, that could have a material effect on the Company's financial position, results of operations or cash flows.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

On March 5, 2014, the Company granted restricted share units under its long-term incentive plan with a grant-date fair value aggregating $21.3 million.  The aggregate fair value, net of estimated forfeitures, was $20.2 million, which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date.  

Additionally, on March 5, 2014, the Company granted to certain members of management performance units (P-Units) that have a target value of $100 per unit.  The amount ultimately earned with respect to the P-Units will depend on the Company’s total shareholder return (TSR) ranking compared to a group of peer companies over a three-year period ending December 31, 2016, and could range from zero to $200 per unit depending on performance.  Twenty-five percent of the P-Units’ value is determined by the Company’s relative TSR ranking for each one-year period ended December 31, 2014, 2015, and 2016, respectively, and 25% of the P-Units’ value is determined by the relative TSR ranking for the three-year period ending December 31, 2016.  Vesting of awards and any payment with respect to the P-Units would not occur until the third anniversary following the grant date and would be settled in cash.

The grant-date fair value of the P-Units was estimated to be $8.5 million.  Fair value was estimated using a Monte Carlo simulation model, which considers the probabilities of the Company’s TSR ranking at the end of each performance period, and the amount of the payout at each rank to determine the probability-weighted expected payout.  The Company uses liability accounting to account for the P-Units.  Compensation is recognized on a straight-line basis over a maximum period of three years from the grant date and is adjusted for changes in fair value through the vesting date.  In the event there is no payout of the P-Units for any 25% tranche as the result of a failure to meet the performance thresholds, any previously recognized expense relating to that tranche would be reversed at the end of the tranche’s performance period.

At March 31, 2014, the Company had approximately $52.2 million of estimated unrecognized share-based compensation, which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.1 years.

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Guarantees of Registered Securities

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantees of Registered Securities

Guarantees of Registered Securities

Rowan plc and its 100%-owned subsidiary, RCI, have entered into agreements providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan plc of the prompt payment when due of any amount owed to the holders of RCI's 5% Senior Notes due 2017, 7.875% Senior Notes due 2019, 4.875% Senior Notes due 2022, 4.75% Senior Notes due 2024, 5.4% Senior Notes due 2042, and 5.85% Senior Notes due 2044 (the "Senior Notes").

The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc's guarantee of the Senior Notes and reflects the corporate ownership structure as of March 31, 2014. Financial information for the three months ended March 31, 2013, has been recast to reflect changes to the corporate ownership structure that occurred in the first quarter of 2014 and is presented as though the structure at March 31, 2014, was in place at January 1, 2013.

During the quarter ended March 31, 2014, we identified certain immaterial misclassifications in our guarantor financial information at December 31, 2013, and prior periods primarily relating to the allocation of noncurrent income tax liabilities and deferred tax assets and liabilities between RCI and other nonguarantor subsidiaries. These errors had no impact on our consolidated financial statements. We have revised the consolidating balance sheet at December 31, 2013, and the consolidating income statement for the three months ended March 31, 2013, presented herein, to conform to the current period presentation. A summary of the changes follows (in thousands):

	RCI (Issuer)		Other non-guarantor subsidiaries
Consolidating Balance Sheets
December 31, 2013:
Other current assets:
As reported	$	45,031	$	22,355
As corrected	43,611		23,775
Due from affiliates:
As reported	$	1,439,112	$	579,501
As corrected	1,436,736		542,331
Accrued liabilities:
As reported	$	101,478	$	54,493
As corrected	99,102		56,869
Due to affiliates:
As reported	$	575,184	$	1,421,553
As corrected	546,690		1,410,501
Other liabilities (noncurrent):
As reported	$	194,966	$	85,960
As corrected	235,779		45,147
Deferred income taxes (noncurrent liability):
As reported	$	126,681	$	302,974
As corrected	115,376		314,279
Retained earnings:
As reported	$	4,795,441	$	5,908,071
As corrected	4,793,007		5,910,505

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	116,010	$	668,602	$	655,777	$	—		$	1,440,389
Receivables - trade and other	111		47,413		336,112		—			383,636
Other current assets	129		36,526		19,579		—			56,234
Total current assets	116,250		752,541		1,011,468		—			1,880,259
Property, plant and equipment - gross	—		593,056		8,123,149		—			8,716,205
Less accumulated depreciation and amortization	—		247,682		1,633,173		—			1,880,855
Property, plant  and equipment - net	—		345,374		6,489,976		—			6,835,350
Investments in subsidiaries	4,854,569		5,509,437		—		(10,364,006		)	—
Due from affiliates	1		1,387,665		223,155		(1,610,821		)	—
Other assets	—		67,790		709		—			68,499
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108
CURRENT LIABILITIES:
Accounts payable - trade	$	816	$	11,006	$	88,266	$	—		$	100,088
Deferred revenues	—		—		41,013		—			41,013
Accrued liabilities	—		97,336		61,480		—			158,816
Total current liabilities	816		108,342		190,759		—			299,917
Long-term debt	—		2,807,967		—		—			2,807,967
Due to affiliates	4,983		221,305		1,384,533		(1,610,821		)	—
Other liabilities	8,244		240,739		39,959		—			288,942
Deferred income taxes - net	—		427,840		427,602		(424,937		)	430,505
Shareholders' equity	4,956,777		4,256,614		5,682,455		(9,939,069		)	4,956,777
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2013

(in thousands)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	64,292	$	92,116	$	936,436	$	—		$	1,092,844
Receivables - trade and other	58		7,877		336,611		—			344,546
Other current assets	289		43,613		23,773		—			67,675
Assets of discontinued operations	—		23,813		—		—			23,813
Total current assets	64,639		167,419		1,296,820		—			1,528,878
Property, plant and equipment - gross	—		593,606		7,604,109		—			8,197,715
Less accumulated depreciation and amortization	—		243,666		1,568,294		—			1,811,960
Property, plant  and equipment - net	—		349,940		6,035,815		—			6,385,755
Investments in subsidiaries	4,860,492		5,657,926		—		(10,518,418		)	—
Due from affiliates	136		1,384,573		506,455		(1,891,164		)	—
Other assets	—		60,343		785		—			61,128
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761
CURRENT LIABILITIES:
Accounts payable - trade	$	1,359	$	13,409	$	109,208	$	—		$	123,976
Deferred revenues	—		—		54,515		—			54,515
Accrued liabilities	—		105,421		50,550		—			155,971
Liabilities of discontinued operations	—		20,122		—		—			20,122
Total current liabilities	1,359		138,952		214,273		—			354,584
Long-term debt	—		2,008,700		—		—			2,008,700
Due to affiliates	22,012		502,139		1,367,013		(1,891,164		)	—
Other liabilities	8,135		239,287		41,639		—			289,061
Deferred income taxes - net	—		421,622		423,216		(415,183		)	429,655
Shareholders' equity	4,893,761		4,309,501		5,793,734		(10,103,235		)	4,893,761
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	16,162		$	376,494		$	(15,054	)	$	377,602
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			3,156			232,267			(15,054		)	220,369
Depreciation and amortization	—			4,562			66,311			—			70,873
Selling, general and administrative	5,820			1,229			22,826			—			29,875
Loss (gain) on disposals of  property and equipment	—			17			786			—			803
Litigation settlement	—			—			(20,875		)	—			(20,875		)
Total costs and expenses	5,820			8,964			301,315			(15,054		)	301,045
INCOME (LOSS) FROM OPERATIONS	(5,820		)	7,198			75,179			—			76,557
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(20,960		)	(240		)	240			(20,960		)
Interest income	109			447			271			(240		)	587
Other - net	3,500			(3,494		)	(357		)	—			(351		)
Total other income (expense) - net	3,609			(24,007		)	(326		)	—			(20,724		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(2,211		)	(16,809		)	74,853			—			55,833
(Benefit) provision for income taxes	—			(8,603		)	18,640			(9,756		)	281
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(2,211		)	(8,206		)	56,213			9,756			55,552
DISCONTINUED OPERATIONS, NET OF TAX	—			4,043			—			—			4,043
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	61,806			28,759			—			(90,565		)	—
NET INCOME	$	59,595		$	24,596		$	56,213		$	(80,809	)	$	59,595

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	34,359		$	391,519		$	(31,640	)	$	394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			11,318			229,791			(31,640		)	209,469
Depreciation and amortization	—			12,641			51,975			—			64,616
Selling, general and administrative	9,212			714			19,505			—			29,431
Loss on disposals of  property and equipment	—			210			98			—			308
Total costs and expenses	9,212			24,883			301,369			(31,640		)	303,824
INCOME (LOSS) FROM OPERATIONS	(9,212		)	9,476			90,150			—			90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(18,581		)	(38		)	38			(18,581		)
Interest income	42			76			279			(38		)	359
Loss on debt extinguishment	—			—			—			—			—
Other - net	2,499			(2,468		)	(825		)	—			(794		)
Total other income (expense) - net	2,541			(20,973		)	(584		)	—			(19,016		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(6,671		)	(11,497		)	89,566			—			71,398
(Benefit) provision for income taxes	—			(2,328		)	12,540			(6,948		)	3,264
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(6,671		)	(9,169		)	77,026			6,948			68,134
DISCONTINUED OPERATIONS, NET OF TAX	—			—			—			—			—
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	74,805			30,388			—			(105,193		)	—
NET INCOME	$	68,134		$	21,219		$	77,026		$	(98,245	)	$	68,134

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	59,595		$	24,596		$	56,213	$	(80,809	)	$	59,595
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127			3,127			—		(3,127		)	3,127
Amortization of prior service credit	(723		)	(723		)	—		723			(723		)
	2,404			2,404			—		(2,404		)	2,404
COMPREHENSIVE INCOME	$	61,999		$	27,000		$	56,213	$	(83,213	)	$	61,999

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	68,134		$	21,219		$	77,026	$	(98,245	)	$	68,134
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	4,412			4,412			—		(4,412		)	4,412
Amortization of prior service credit	(784		)	(784		)	—		784			(784		)
	3,628			3,628			—		(3,628		)	3,628
COMPREHENSIVE INCOME	$	71,762		$	24,847		$	77,026	$	(101,873	)	$	71,762

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	67,801		$	287,495		$	290,409		$	(565,182	)	$	80,523
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(4,236		)	(528,282		)	—			(532,518		)
Proceeds  from  disposals  of  property,  plant  and  equipment	—			6,007			593			—			6,600
Investments in consolidated subsidiaries	—			(74,305		)	—			74,305			—
Net  cash  used  in  investing  activities	—			(72,534		)	(527,689		)	74,305			(525,918		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(16,893		)	(355,605		)	(42,684		)	415,182			—
Contributions from parent	—			—			74,305			(74,305		)	—
Proceeds from borrowings	—			793,380			—			—			793,380
Debt issue costs	—			(687		)	—			—			(687		)
Dividends paid	—			(75,000		)	(75,000		)	150,000			—
Excess tax benefits from share-based compensation	—			(563		)	—			—			(563		)
Proceeds  from exercise of share options	810			—			—			—			810
Net  cash  provided  by  (used  in)   financing  activities	(16,083		)	361,525			(43,379		)	490,877			792,940
INCREASE  (DECREASE)  IN  CASH  AND   CASH  EQUIVALENTS	51,718			576,486			(280,659		)	—			347,545
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	64,292			92,116			936,436			—			1,092,844
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	116,010		$	668,602		$	655,777		$	—		$	1,440,389

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(5,076	)	$	(12,150	)	$	120,405		$	—		$	103,179
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(20,709		)	(91,256		)	—			(111,965		)
Proceeds  from  disposals  of  property,   plant  and  equipment	—			2,202			185			—			2,387
Investments in consolidated subsidiaries	—			(86,531		)	—			86,531			—
Net  cash  used  in  investing  activities	—			(105,038		)	(91,071		)	86,531			(109,578		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(4,249		)	155,193			(150,944		)	—			—
Contributions from parent	—			—			86,531			(86,531		)	—
Excess tax benefits from share-based compensation	—			112			—			—			112
Proceeds from exercise of share options	1,531			—			—			—			1,531
Net  cash  provided  by (used in)  financing  activities	(2,718		)	155,305			(64,413		)	(86,531		)	1,643
(DECREASE) INCREASE IN  CASH  AND  CASH  EQUIVALENTS	(7,794		)	38,117			(35,079		)	—			(4,756		)
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	58,628			228,085			737,295			—			1,024,008
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	50,834		$	266,202		$	702,216		$	—		$	1,019,252

XML

Guarantees of Registered Securities (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor Financial Statements

reflects the corporate ownership structure as of March 31, 2014. Financial information for the three months ended March 31, 2013, has been recast to reflect changes to the corporate ownership structure that occurred in the first quarter of 2014 and is presented as though the structure at March 31, 2014, was in place at January 1, 2013.

During the quarter ended March 31, 2014, we identified certain immaterial misclassifications in our guarantor financial information at December 31, 2013, and prior periods primarily relating to the allocation of noncurrent income tax liabilities and deferred tax assets and liabilities between RCI and other nonguarantor subsidiaries. These errors had no impact on our consolidated financial statements. We have revised the consolidating balance sheet at December 31, 2013, and the consolidating income statement for the three months ended March 31, 2013, presented herein, to conform to the current period presentation. A summary of the changes follows (in thousands):

	RCI (Issuer)		Other non-guarantor subsidiaries
Consolidating Balance Sheets
December 31, 2013:
Other current assets:
As reported	$	45,031	$	22,355
As corrected	43,611		23,775
Due from affiliates:
As reported	$	1,439,112	$	579,501
As corrected	1,436,736		542,331
Accrued liabilities:
As reported	$	101,478	$	54,493
As corrected	99,102		56,869
Due to affiliates:
As reported	$	575,184	$	1,421,553
As corrected	546,690		1,410,501
Other liabilities (noncurrent):
As reported	$	194,966	$	85,960
As corrected	235,779		45,147
Deferred income taxes (noncurrent liability):
As reported	$	126,681	$	302,974
As corrected	115,376		314,279
Retained earnings:
As reported	$	4,795,441	$	5,908,071
As corrected	4,793,007		5,910,505

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	116,010	$	668,602	$	655,777	$	—		$	1,440,389
Receivables - trade and other	111		47,413		336,112		—			383,636
Other current assets	129		36,526		19,579		—			56,234
Total current assets	116,250		752,541		1,011,468		—			1,880,259
Property, plant and equipment - gross	—		593,056		8,123,149		—			8,716,205
Less accumulated depreciation and amortization	—		247,682		1,633,173		—			1,880,855
Property, plant  and equipment - net	—		345,374		6,489,976		—			6,835,350
Investments in subsidiaries	4,854,569		5,509,437		—		(10,364,006		)	—
Due from affiliates	1		1,387,665		223,155		(1,610,821		)	—
Other assets	—		67,790		709		—			68,499
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108
CURRENT LIABILITIES:
Accounts payable - trade	$	816	$	11,006	$	88,266	$	—		$	100,088
Deferred revenues	—		—		41,013		—			41,013
Accrued liabilities	—		97,336		61,480		—			158,816
Total current liabilities	816		108,342		190,759		—			299,917
Long-term debt	—		2,807,967		—		—			2,807,967
Due to affiliates	4,983		221,305		1,384,533		(1,610,821		)	—
Other liabilities	8,244		240,739		39,959		—			288,942
Deferred income taxes - net	—		427,840		427,602		(424,937		)	430,505
Shareholders' equity	4,956,777		4,256,614		5,682,455		(9,939,069		)	4,956,777
	$	4,970,820	$	8,062,807	$	7,725,308	$	(11,974,827	)	$	8,784,108

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2013

(in thousands)

	Rowan plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	64,292	$	92,116	$	936,436	$	—		$	1,092,844
Receivables - trade and other	58		7,877		336,611		—			344,546
Other current assets	289		43,613		23,773		—			67,675
Assets of discontinued operations	—		23,813		—		—			23,813
Total current assets	64,639		167,419		1,296,820		—			1,528,878
Property, plant and equipment - gross	—		593,606		7,604,109		—			8,197,715
Less accumulated depreciation and amortization	—		243,666		1,568,294		—			1,811,960
Property, plant  and equipment - net	—		349,940		6,035,815		—			6,385,755
Investments in subsidiaries	4,860,492		5,657,926		—		(10,518,418		)	—
Due from affiliates	136		1,384,573		506,455		(1,891,164		)	—
Other assets	—		60,343		785		—			61,128
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761
CURRENT LIABILITIES:
Accounts payable - trade	$	1,359	$	13,409	$	109,208	$	—		$	123,976
Deferred revenues	—		—		54,515		—			54,515
Accrued liabilities	—		105,421		50,550		—			155,971
Liabilities of discontinued operations	—		20,122		—		—			20,122
Total current liabilities	1,359		138,952		214,273		—			354,584
Long-term debt	—		2,008,700		—		—			2,008,700
Due to affiliates	22,012		502,139		1,367,013		(1,891,164		)	—
Other liabilities	8,135		239,287		41,639		—			289,061
Deferred income taxes - net	—		421,622		423,216		(415,183		)	429,655
Shareholders' equity	4,893,761		4,309,501		5,793,734		(10,103,235		)	4,893,761
	$	4,925,267	$	7,620,201	$	7,839,875	$	(12,409,582	)	$	7,975,761

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	16,162		$	376,494		$	(15,054	)	$	377,602
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			3,156			232,267			(15,054		)	220,369
Depreciation and amortization	—			4,562			66,311			—			70,873
Selling, general and administrative	5,820			1,229			22,826			—			29,875
Loss (gain) on disposals of  property and equipment	—			17			786			—			803
Litigation settlement	—			—			(20,875		)	—			(20,875		)
Total costs and expenses	5,820			8,964			301,315			(15,054		)	301,045
INCOME (LOSS) FROM OPERATIONS	(5,820		)	7,198			75,179			—			76,557
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(20,960		)	(240		)	240			(20,960		)
Interest income	109			447			271			(240		)	587
Other - net	3,500			(3,494		)	(357		)	—			(351		)
Total other income (expense) - net	3,609			(24,007		)	(326		)	—			(20,724		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(2,211		)	(16,809		)	74,853			—			55,833
(Benefit) provision for income taxes	—			(8,603		)	18,640			(9,756		)	281
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(2,211		)	(8,206		)	56,213			9,756			55,552
DISCONTINUED OPERATIONS, NET OF TAX	—			4,043			—			—			4,043
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	61,806			28,759			—			(90,565		)	—
NET INCOME	$	59,595		$	24,596		$	56,213		$	(80,809	)	$	59,595

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	34,359		$	391,519		$	(31,640	)	$	394,238
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			11,318			229,791			(31,640		)	209,469
Depreciation and amortization	—			12,641			51,975			—			64,616
Selling, general and administrative	9,212			714			19,505			—			29,431
Loss on disposals of  property and equipment	—			210			98			—			308
Total costs and expenses	9,212			24,883			301,369			(31,640		)	303,824
INCOME (LOSS) FROM OPERATIONS	(9,212		)	9,476			90,150			—			90,414
OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(18,581		)	(38		)	38			(18,581		)
Interest income	42			76			279			(38		)	359
Loss on debt extinguishment	—			—			—			—			—
Other - net	2,499			(2,468		)	(825		)	—			(794		)
Total other income (expense) - net	2,541			(20,973		)	(584		)	—			(19,016		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(6,671		)	(11,497		)	89,566			—			71,398
(Benefit) provision for income taxes	—			(2,328		)	12,540			(6,948		)	3,264
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(6,671		)	(9,169		)	77,026			6,948			68,134
DISCONTINUED OPERATIONS, NET OF TAX	—			—			—			—			—
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	74,805			30,388			—			(105,193		)	—
NET INCOME	$	68,134		$	21,219		$	77,026		$	(98,245	)	$	68,134

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	59,595		$	24,596		$	56,213	$	(80,809	)	$	59,595
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	3,127			3,127			—		(3,127		)	3,127
Amortization of prior service credit	(723		)	(723		)	—		723			(723		)
	2,404			2,404			—		(2,404		)	2,404
COMPREHENSIVE INCOME	$	61,999		$	27,000		$	56,213	$	(83,213	)	$	61,999

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	68,134		$	21,219		$	77,026	$	(98,245	)	$	68,134
OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	4,412			4,412			—		(4,412		)	4,412
Amortization of prior service credit	(784		)	(784		)	—		784			(784		)
	3,628			3,628			—		(3,628		)	3,628
COMPREHENSIVE INCOME	$	71,762		$	24,847		$	77,026	$	(101,873	)	$	71,762

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2014

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	67,801		$	287,495		$	290,409		$	(565,182	)	$	80,523
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(4,236		)	(528,282		)	—			(532,518		)
Proceeds  from  disposals  of  property,  plant  and  equipment	—			6,007			593			—			6,600
Investments in consolidated subsidiaries	—			(74,305		)	—			74,305			—
Net  cash  used  in  investing  activities	—			(72,534		)	(527,689		)	74,305			(525,918		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(16,893		)	(355,605		)	(42,684		)	415,182			—
Contributions from parent	—			—			74,305			(74,305		)	—
Proceeds from borrowings	—			793,380			—			—			793,380
Debt issue costs	—			(687		)	—			—			(687		)
Dividends paid	—			(75,000		)	(75,000		)	150,000			—
Excess tax benefits from share-based compensation	—			(563		)	—			—			(563		)
Proceeds  from exercise of share options	810			—			—			—			810
Net  cash  provided  by  (used  in)   financing  activities	(16,083		)	361,525			(43,379		)	490,877			792,940
INCREASE  (DECREASE)  IN  CASH  AND   CASH  EQUIVALENTS	51,718			576,486			(280,659		)	—			347,545
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	64,292			92,116			936,436			—			1,092,844
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	116,010		$	668,602		$	655,777		$	—		$	1,440,389

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Three months ended March 31, 2013

(in thousands)

(unaudited)

	Rowan plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(5,076	)	$	(12,150	)	$	120,405		$	—		$	103,179
INVESTING ACTIVITIES:
Property,  plant  and  equipment  additions	—			(20,709		)	(91,256		)	—			(111,965		)
Proceeds  from  disposals  of  property,   plant  and  equipment	—			2,202			185			—			2,387
Investments in consolidated subsidiaries	—			(86,531		)	—			86,531			—
Net  cash  used  in  investing  activities	—			(105,038		)	(91,071		)	86,531			(109,578		)
FINANCING ACTIVITIES:
Advances (to) from affiliates	(4,249		)	155,193			(150,944		)	—			—
Contributions from parent	—			—			86,531			(86,531		)	—
Excess tax benefits from share-based compensation	—			112			—			—			112
Proceeds from exercise of share options	1,531			—			—			—			1,531
Net  cash  provided  by (used in)  financing  activities	(2,718		)	155,305			(64,413		)	(86,531		)	1,643
(DECREASE) INCREASE IN  CASH  AND  CASH  EQUIVALENTS	(7,794		)	38,117			(35,079		)	—			(4,756		)
CASH  AND  CASH  EQUIVALENTS,   BEGINNING  OF  PERIOD	58,628			228,085			737,295			—			1,024,008
CASH  AND  CASH  EQUIVALENTS,   END  OF  PERIOD	$	50,834		$	266,202		$	702,216		$	—		$	1,019,252

Schedule of Prior Period Adjustments

A summary of the changes follows (in thousands):

	RCI (Issuer)		Other non-guarantor subsidiaries
Consolidating Balance Sheets
December 31, 2013:
Other current assets:
As reported	$	45,031	$	22,355
As corrected	43,611		23,775
Due from affiliates:
As reported	$	1,439,112	$	579,501
As corrected	1,436,736		542,331
Accrued liabilities:
As reported	$	101,478	$	54,493
As corrected	99,102		56,869
Due to affiliates:
As reported	$	575,184	$	1,421,553
As corrected	546,690		1,410,501
Other liabilities (noncurrent):
As reported	$	194,966	$	85,960
As corrected	235,779		45,147
Deferred income taxes (noncurrent liability):
As reported	$	126,681	$	302,974
As corrected	115,376		314,279
Retained earnings:
As reported	$	4,795,441	$	5,908,071
As corrected	4,793,007		5,910,505

XML

Share-Based Compensation (Details) (USD $)	0 Months Ended	3 Months Ended
	Mar. 05, 2014	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested share-based compensation arrangements		$ 52,200,000
Compensation expense over a remaining weighted-average period		2 years 1 month 6 days
Restricted Stock Units and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock and stock appreciation rights granted	21,300,000
Aggregate grant date fair value, net of estimated forfeitures	20,200,000
Requisite service period	2 years 8 months 12 days
Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target value of p-units granted during the period (in dollars per unit)	$ 100
Awards vesting period	3 years
Total shareholder return, Minimum payout	0
Total shareholder return, Maximum payout	200
Vesting percentage based on relative total shareholder return ranking on annual basis		25.00%
Vesting percentage of performance units periodically (in hundredths)		25.00%
Grant date fair value of P-Units		$ 8,500,000
Performance measurement period		3 years
Vesting percentage of performance units (in hundredths)		25.00%

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
NET INCOME	$ 59,595	$ 68,134
Pension and other postretirement benefit adjustments, net of income taxes of $1,287 and $1,953, respectively:
Amortization of net loss	3,127	4,412
Amortization of prior service credit	(723)	(784)
Total other comprehensive income	2,404	3,628
COMPREHENSIVE INCOME	$ 61,999	$ 71,762

XML

Basis of Presentation and Nature of Operations

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Nature of Operations

Basis of Presentation and Nature of Operations

The financial statements included in this Form 10-Q are presented in United States (U.S.) dollars and include the accounts of Rowan Companies plc ("Rowan plc") and its subsidiaries, 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 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, 2013.

We are a global provider of offshore oil and gas contract drilling services utilizing a fleet of 30 self-elevating mobile offshore “jack-up” drilling units and four ultra-deepwater drillships, three of which are currently under construction.  Historically, our primary focus has been on high-specification and premium jack-up rigs, which our customers use for exploratory and development drilling and associated drilling services.  In 2009, we began executing a new strategic plan that included divesting non-core assets and investing in ultra-deepwater assets, with a goal of balancing earnings from jack-ups and deepwater rigs over the long term. In 2011 and 2012, we entered into contracts for the construction of four ultra-deepwater drillships. In January 2014, we took delivery of the first of these drillships, the Rowan Renaissance, which commenced drilling operations under a three-year contract offshore West Africa in April 2014. The Rowan Resolute is scheduled for delivery in late June 2014 and expected to commence operations under a three-year contract in late September 2014. The Rowan Reliance is scheduled for delivery in late October 2014 and expected to commence operations under a three-year contract in late January 2015. The Rowan Relentless is scheduled for delivery in March 2015 and is not yet under contract.

The Company conducts offshore drilling operations in various markets throughout the world including the United Kingdom (U.K.) and Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico (US GOM), Southeast Asia, West Africa, Trinidad and the Mediterranean.

The financial information as of December 31, 2013, presented in this report does not constitute the Company's statutory accounts for that year within the meaning of the U.K. Companies Act 2006 (the "Companies Act").  Statutory accounts as required by the Companies Act for the year ended December 31, 2013, have been delivered to the Registrar of Companies in the U.K. The auditors reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Sections 498(2) or (3) of the Companies Act.

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Other Financial Statement Disclosures (Components of Receivables) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Other Financial Statement Disclosures [Abstract]
Trade	$ 323,948	$ 323,679
Income tax	46,852	6,759
Other	12,836	14,108
Total receivables - trade and other	$ 383,636	$ 344,546

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Other Financial Statement Disclosures (Tables)

3 Months Ended

Mar. 31, 2014

Other Financial Statement Disclosures [Abstract]

Components of Receivables - trade and other

The following table sets forth the components of Receivables - trade and other (in thousands):

	March 31, 2014		December 31, 2013
Trade	$	323,948	$	323,679
Income tax	46,852		6,759
Other	12,836		14,108
Total receivables - trade and other	$	383,636	$	344,546

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. Assets and liabilities measured at fair value are summarized below (in thousands):

			Estimated fair value measurements
	Carrying value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2014:
Assets - cash equivalents	$	1,381,632	$	1,381,632	$	—	$	—
December 31, 2013:
Assets - cash equivalents	$	1,063,500	$	1,063,500	$	—	$	—

Estimated Fair Values and Related Carrying Values of Long-term Debt Securities

Estimated fair values and related carrying values of our long-term debt securities are shown below (in thousands):

	March 31, 2014				December 31, 2013
	Fair value		Carrying value		Fair value		Carrying value
5% Senior Notes, due 2017	$	436,373	$	399,031	$	433,879	$	398,961
7.875% Senior Notes, due 2019	602,848		498,252		603,177		498,171
4.875% Senior Notes, due 2022	724,994		712,821		711,816		713,208
4.75% Senior Notes, due 2024	404,660		399,600		—		—
5.4% Senior Notes, due 2042	381,005		398,374		368,602		398,360
5.85% Senior Notes, due 2044	403,404		399,889		—		—
	$	2,953,284	$	2,807,967	$	2,117,474	$	2,008,700