Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 21, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ROWAN COMPANIES PLC | ||
Entity Central Index Key | 85,408 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 127,294,643 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
REVENUE | $ 824.8 | $ 1,282.8 | $ 1,843.2 |
COSTS AND EXPENSES: | |||
Direct operating costs (excluding items below) | 682.7 | 685 | 779.7 |
Depreciation and amortization | 388.9 | 403.7 | 402.9 |
Selling, general and administrative | 96.1 | 104.6 | 102.2 |
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | 0 |
Loss on disposals of property and equipment | 12.1 | 9.4 | 8.7 |
Merger and related costs | 8.9 | 0 | 0 |
Material charges and other operating items | 0 | 0 | 32.9 |
Total costs and expenses | 1,122.9 | 1,045.3 | 1,326.4 |
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | 0 |
INCOME (LOSS) FROM OPERATIONS | (287.8) | 238.4 | 516.8 |
OTHER INCOME (EXPENSE): | |||
Interest expense | (156.3) | (155.7) | (155.5) |
Interest income | 33.1 | 15.4 | 3.8 |
Gain (Loss) on extinguishment of debt | 0 | 1.7 | (31.2) |
Other - net | 12 | (0.5) | (8.3) |
Total other (expense) - net | (111.2) | (139.1) | (191.2) |
INCOME (LOSS) FROM CONTINUING OPERATIONS | |||
INCOME (LOSS) BEFORE INCOME TAXES | (399) | 99.3 | 325.6 |
Provision (benefit) for income taxes | (51.6) | 26.6 | 5 |
NET INCOME (LOSS) | $ (347.4) | $ 72.7 | $ 320.6 |
NET INCOME (LOSS) PER SHARE - BASIC: | |||
Income (loss) from continuing operations (in dollars per share) | $ (2.74) | $ 0.58 | $ 2.56 |
NET INCOME (LOSS) PER SHARE - DILUTED: | |||
Income (loss) from continuing operations (in dollars per share) | $ (2.74) | $ 0.57 | $ 2.55 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ (347.4) | $ 72.7 | $ 320.6 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income tax expense (benefit) of $(4.8), $0, and $(2.8), respectively. | (17.9) | (33.3) | (5.1) |
Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income tax expense (benefit) of $(1.5), $0, and $3.8, respectively. | (5.6) | 11.4 | 7.4 |
OTHER COMPREHENSIVE INCOME (LOSS) | (23.5) | (21.9) | 2.3 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (370.9) | $ 50.8 | $ 322.9 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income tax effect | $ (4.8) | $ 0 | $ (2.8) |
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost tax effect | $ (1.5) | $ 0 | $ 3.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,026.7 | $ 1,332.1 |
Receivables - trade and other | 251.2 | 212.8 |
Prepaid expenses and other current assets | 22.4 | 15.5 |
Total current assets | 1,300.3 | 1,560.4 |
PROPERTY AND EQUIPMENT: | ||
Drilling equipment | 8,510.7 | 8,697.8 |
Other property and equipment | 141.7 | 136.1 |
Property and equipment - gross | 8,652.4 | 8,833.9 |
Less accumulated depreciation and amortization | 2,451.4 | 2,281.2 |
Property and equipment - net | 6,201 | 6,552.7 |
Long-term note receivable from unconsolidated subsidiary | 456 | 270.2 |
Investment in unconsolidated subsidiary | 41.2 | 30.9 |
Other assets | 119.2 | 44.1 |
TOTAL ASSETS | 8,117.7 | 8,458.3 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 201.2 | 0 |
Accounts payable - trade | 122.3 | 97.2 |
Deferred revenue | 16.7 | 1.1 |
Accrued liabilities | 113.4 | 159.1 |
Total current liabilities | 453.6 | 257.4 |
Long-term debt | 2,309.7 | 2,510.3 |
Other liabilities | 307.7 | 293.6 |
Deferred income taxes - net | 11.7 | 10.9 |
Commitments and contingent liabilities | ||
SHAREHOLDERS' EQUITY: | ||
Class A Ordinary Shares, $0.125 par value; 128.2 and 128.1 shares issued, respectively; 127.1 and 126.3 shares outstanding, respectively | 16 | 16 |
Additional paid-in capital | 1,501.5 | 1,488.6 |
Retained earnings | 3,810.5 | 4,109.7 |
Treasury shares, cost of 1.1 and 1.8, respectively | (7.9) | (9.3) |
Accumulated other comprehensive loss | (285.1) | (218.9) |
Total shareholders' equity | 5,035 | 5,386.1 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 8,117.7 | $ 8,458.3 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
SHAREHOLDERS' EQUITY: | ||
Treasury shares (in shares) | 1.1 | 1.8 |
Common Class A [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 |
Common stock, shares issued (in shares) | 128.2 | 128.1 |
Common stock, shares outstanding (in shares) | 127.1 | 126.3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Class A Ordinary Shares/ Common stock [Member] | Additional paid-in capital [Member] | Retained Earnings [Member] | Treasury shares [Member] | Accumulated other comprehensive income (loss) [Member] |
Balance at Dec. 31, 2015 | $ 4,772.5 | $ 15.7 | $ 1,458.5 | $ 3,509.8 | $ (12.2) | $ (199.3) |
Balance (in shares) at Dec. 31, 2015 | 124.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | (4.5) | $ 0.3 | (9.8) | 5 | ||
Net shares issued (acquired) under share-based compensation plans (in shares) | 0.7 | |||||
Share-based compensation | 20.4 | 20.4 | ||||
Excess tax benefit (deficit) from share-based awards | 2.6 | 2.6 | ||||
Retirement benefit adjustments, net of taxes | 2.3 | 2.3 | ||||
Net income (loss) | 320.6 | 320.6 | ||||
Balance at Dec. 31, 2016 | 5,113.9 | $ 16 | 1,471.7 | 3,830.4 | (7.2) | (197) |
Balance (in shares) at Dec. 31, 2016 | 125.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net shares issued (acquired) under share-based compensation plans | (4.5) | (2.4) | (2.1) | |||
Net shares issued (acquired) under share-based compensation plans (in shares) | 0.8 | |||||
Share-based compensation | 19.3 | 19.3 | ||||
Retirement benefit adjustments, net of taxes | (21.9) | (21.9) | ||||
Net income (loss) | 72.7 | 72.7 | ||||
Balance at Dec. 31, 2017 | 5,386.1 | $ 16 | 1,488.6 | 4,109.7 | (9.3) | (218.9) |
Balance (in shares) at Dec. 31, 2017 | 126.3 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 206.6 | 206.6 | ||||
Net shares issued (acquired) under share-based compensation plans | (3.7) | (5.1) | 1.4 | |||
Net shares issued (acquired) under share-based compensation plans (in shares) | 0.8 | |||||
Share-based compensation | 18 | 18 | ||||
Retirement benefit adjustments, net of taxes | (23.5) | (23.5) | ||||
Other | 0 | (2.9) | 2.9 | |||
Net income (loss) | (347.4) | (347.4) | ||||
Balance at Dec. 31, 2018 | 5,035 | $ 16 | $ 1,501.5 | 3,810.5 | $ (7.9) | (285.1) |
Balance (in shares) at Dec. 31, 2018 | 127.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 5.5 | $ 51.1 | $ (45.6) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Retirement benefit adjustments, tax (expense) benefit | $ 6.3 | $ 0 | $ (1) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH PROVIDED BY OPERATIONS: | |||
Net income (loss) | $ (347.4) | $ 72.7 | $ 320.6 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 388.9 | 403.7 | 402.9 |
Equity in earnings of unconsolidated subsidiary | (10.3) | (0.9) | 0 |
Deferred income taxes | (68.1) | 24.7 | (37.9) |
Pension and other postretirement benefits (income) expense | (9) | 12.5 | 15 |
Share-based compensation expense | 24 | 29 | 34.6 |
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | 0 |
Loss on disposals of property and equipment | 12.1 | 9.4 | 8.7 |
Contingent payment derivative | 0 | 0.1 | (6.1) |
Non-cash interest income from unconsolidated subsidiary (receipt in kind) | (12) | 0 | 0 |
Asset impairment charges | 0 | 0 | 34.3 |
Cash loss on extinguishment of debt | 0 | 0 | 24 |
Other | 8.1 | 1.5 | 3.7 |
Changes in current assets and liabilities: | |||
Receivables - trade and other | (7.2) | 82.9 | 109.2 |
Prepaid expenses and other current assets | (6.1) | 14.2 | 9.2 |
Accounts payable | 2.8 | 1.9 | (4) |
Accrued income taxes | (12.3) | (3.8) | (3.4) |
Other current liabilities | (25.1) | 7.8 | (27.2) |
Other postretirement benefit claims paid | (1.4) | (18.4) | (7.9) |
Contributions to pension plans | (24.2) | (29.3) | (22.5) |
Deferred revenue | 5.5 | (112.8) | 63.7 |
Net changes in other noncurrent assets and liabilities | (12.6) | (38) | 12.7 |
Net cash provided by (used in) operations | (160.1) | 299.8 | 929.6 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (169.2) | (100.6) | (117.6) |
Purchase of rigs | (70.8) | 0 | 0 |
Deposit on purchase of rigs | 0 | (7.7) | 0 |
Investment in unconsolidated subsidiary | 0 | (30) | 0 |
Contributions to unconsolidated subsidiary for note receivable | (271.3) | (357.7) | 0 |
Proceeds from sale of assets to unconsolidated subsidiary | 266 | 357.7 | 0 |
Repayments of note receivable from unconsolidated subsidiary | 98.5 | 87.5 | 0 |
Proceeds from disposals of property and equipment | 12.7 | 3.3 | 6.2 |
Net cash provided by (used in) investing activities | (134.1) | (47.5) | (111.4) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings | 0 | 0 | 500 |
Reductions of long-term debt | 0 | (170) | (511.8) |
Payment of debt extinguishment costs | 0 | 0 | (24) |
Debt issue costs | (6.1) | 0 | (8.7) |
Proceeds from exercise of share options | 0.1 | 0 | 0 |
Shares repurchased for tax withholdings on vesting of restricted share units | (5.2) | (5.7) | (5) |
Excess tax benefits from share-based compensation | 0 | 0 | 2.6 |
Net cash provided by (used in) financing activities | (11.2) | (175.7) | (46.9) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (305.4) | 76.6 | 771.3 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,332.1 | 1,255.5 | 484.2 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,026.7 | $ 1,332.1 | $ 1,255.5 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Rowan Companies plc, a public limited company incorporated under the laws of England and Wales, is a global provider of offshore contract drilling services to the oil and gas industry, with a focus on ultra-deepwater drillships and high-specification and premium jack-up rigs. Many of our high specification jack-up rigs are also rated for operating in harsh environments. As of December 31, 2018 , the Company operated in three segments: Deepwater, Jack-ups and ARO, the Company's 50 / 50 joint venture with Saudi Aramco. The Deepwater segment includes four ultra-deepwater drillships. The Jack-ups segment is composed of 21 self-elevating jack-up rigs and includes the impact of the various arrangements with ARO (see discussion below and Note 4 ). As of December 31, 2018, ARO owned a fleet of seven self-elevating jack-up rigs for operation in the Arabian Gulf for Saudi Aramco. ARO has plans to order up to 20 new jack-up rigs over the next 10 years . The Company contracts its drilling rigs, related equipment and work crews primarily on a day-rate basis in markets throughout the world, including the US GOM, Mexico, Central and South America, the U.K. and Norwegian sectors of the North Sea, the Middle East and the Mediterranean Sea. The consolidated financial statements included herein are presented in USD and include the accounts of Rowan plc and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” and “Company” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Proposed Combination of Rowan Companies plc and Ensco plc On October 7, 2018, the Company entered into a Transaction Agreement with Ensco, to effect a “merger-of-equals” transaction. The Transaction Agreement was amended as of January 28, 2019, pursuant to a Deed of Amendment No. 1 to a Transaction Agreement (the “Amendment”). In the Transaction Agreement, as amended, each of the issued and outstanding Class A ordinary shares of the Company will be exchanged (the “Transaction”) for 2.750 Class A ordinary shares of Ensco, each with a nominal value of $0.10 per share. The Transaction is being implemented by means of a court-sanctioned scheme of arrangement (the “Scheme”) under Part 26 of the U.K. Companies Act 2006 (provided that the parties reserve the right under the Transaction Agreement to effect the acquisition by way of a contractual takeover offer as defined in section 974 of the U.K. Companies Act 2006 in certain circumstances). The resulting new combined company will be renamed and trade under a new ticker symbol on the New York Stock Exchange. The completion of the Transaction is subject to various closing conditions, including, among other things, (i) the sanction of a court-sanctioned scheme of arrangement by the High Court of Justice of England and Wales, (ii) the receipt of the required regulatory approval or elapse of the review period with respect thereto in the Kingdom of Saudi Arabia, (iii) the absence of legal restraints prohibiting or restraining the Transaction and (iv) the absence of any law or order reasonably expected to result in the dissolution of ARO, the sale or disposition of the Company’s interest in ARO, or the forfeiture or nationalization of the Company's interest in ARO or ARO’s assets. The Transaction is expected to close during the first half of 2019. The Transaction Agreement contains certain termination rights for both Rowan and Ensco including, among other things: (i) by Rowan or Ensco, if the other party breaches or fails to perform any of its representations, warranties or covenants in the Transaction Agreement that cannot be or is not cured in accordance with the terms of the Transaction Agreement and such breach constitutes a “material adverse effect”, (ii) by Rowan, in the event that the board of directors of Ensco makes an Adverse Recommendation Change (as defined in the Transaction Agreement) or upon any “willful breach” by Ensco of the non-solicitation covenant and (iii) by Ensco, in the event that the board of directors of Rowan makes an Adverse Recommendation Change (as defined in the Transaction Agreement) or upon any “willful breach” by Rowan of the non-solicitation covenant. If the Transaction Agreement is terminated in accordance with clause (i), (ii) or (iii), then Rowan or Ensco, as the applicable terminating party, shall be required to pay the other a termination fee of $24.0 million (the “Termination Fee”). Neither Rowan nor Ensco is permitted, among other things, to solicit, initiate or knowingly facilitate or knowingly encourage any inquiries regarding, or the making of any proposal or offer that constitutes, or could reasonably be expected to lead to, a takeover proposal or engage in or participate in any discussions or negotiations regarding any takeover proposal. The Transaction Agreement contains customary representations, warranties and covenants for a transaction of this nature. The Transaction Agreement also contains customary mutual pre-closing covenants, including the obligation of Rowan and Ensco to conduct their respective businesses in the ordinary course of practice consistent with past practice and to refrain from taking certain specified actions without the consent of the other party. ARO Joint Venture On November 21, 2016, Rowan and Saudi Aramco, through their subsidiaries, entered into a Shareholders’ Agreement to create a 50 / 50 joint venture (the "Shareholders' Agreement") to own, manage and operate offshore drilling units in Saudi Arabia. The new entity, ARO, was formed in May 2017 with each of Rowan and Saudi Aramco contributing $25 million to be used for working capital needs. In addition, $5 million in transaction costs were incurred by Rowan and capitalized to the investment in ARO. ARO commenced operations on October 17, 2017 (see Note 4 for additional information). On October 17, 2017, Rowan and Saudi Aramco amended the asset transfer and contribution agreements (the "Amended Agreements"), previously entered into in connection with the Shareholders' Agreement, to, among other things, modify and clarify the mechanics associated with the formation of ARO to provide for: (1) equal cash contributions to ARO by each of Rowan and Saudi Aramco, (2) the receipt of cash from both Rowan and Saudi Aramco in exchange for shareholder notes, (3) the subsequent sale of: (a) three rigs and related assets to ARO by Rowan in exchange for cash and (b) one rig and related assets to ARO by Saudi Aramco in exchange for cash, and (4) the distribution by ARO of excess cash in the amount of approximately $88 million to each party, to be applied as a repayment to each party's shareholder note, maintaining each party’s 50% ownership interest in ARO following such asset sales. On October 17, 2017, these transactions were completed at which point the Company derecognized the related rig assets and began recording its interest in the ARO joint venture under the equity method of accounting. Pursuant to the terms of the Shareholders' Agreement and the Amended Agreements, Saudi Aramco also sold an additional rig to ARO in late December 2017 for cash. On October 10, 2018, the Company concluded the sale of two additional jack-up rigs, the Scooter Yeargain and the Hank Boswell , to ARO. Transactions included (1) equal cash contributions to ARO by each of Rowan and Saudi Aramco, (2) the receipt of cash from both Rowan and Saudi Aramco in exchange for shareholder notes, (3) the subsequent sale of two such rigs to ARO by Rowan in exchange for cash, and (4) the distribution by ARO of excess cash in the amount of $95.3 million to each party, to be applied as a repayment to each party's shareholder note, maintaining each party’s 50% ownership interest in ARO following such asset sales. By agreement of the parties, this transaction was effective October 1, 2018, at which point the Scooter Yeargain and Hank Boswell each were deemed to have commenced a new three-year contract with Saudi Aramco (see Note 15 for additional information). Rigs purchased by ARO will receive contracts for an aggregate 15 years , renewed and re-priced every three years , provided that the rigs meet the technical and operational requirements of Saudi Aramco. Rowan rigs in Saudi Arabia not selected for sale to the JV were managed by ARO until the end of their contracts with Saudi Aramco pursuant to a management services agreement that provided for a management fee equal to a percentage of revenue to cover overhead costs. As of December 31, 2018, nine Rowan Rigs were leased to ARO through bareboat charter agreements whereby substantially all operating costs will be borne by ARO. ARO contracts with the customer, Saudi Aramco, and directly receives related revenue. Two of the contracts between ARO and Saudi Aramco to which the leases are related, are expected to commence in the first half of 2019. Anadarko Early Termination Revenue During the quarter ended June 30, 2018, the Company recognized $27.8 million of revenue related to an early termination fee from Anadarko Petroleum Corporation (“Anadarko”) pursuant to the Company’s drilling contract for the drillship Rowan Resolute (the “Anadarko Contract”). Termination of the Anadarko Contract became effective on June 1, 2018. The early termination fee was a lump sum payment for the remainder of the term of the Anadarko Contract at a rate of $418,400 per day. The Anadarko Contract was originally scheduled to terminate on August 6, 2018. Customer Contract Termination Amendment On September 15, 2016 , the Company amended its contract with Cobalt, for the drillship Rowan Reliance , which was scheduled to conclude on February 1, 2018. The amendment provided cash settlement payments to the Company totaling $95.9 million , that the drillship remain at its day rate of approximately $582,000 and that the drilling contract may be terminated as early as March 31, 2017. The Company received cash payments totaling $76.3 million in 2016 and received a final cash payment of $19.6 million during the first quarter of 2017. In addition, the amendment provided that if Cobalt continued its operations with the Rowan Reliance after March 31, 2017, the day rate would be reduced to approximately $262,000 per day for the remaining operating days through February 1, 2018 (subject to further adjustment thereafter). Cobalt International Energy, Inc., the parent of Cobalt, also committed to use the Company as its exclusive provider of comparable drilling services for a period of five years . As the Company had the obligation and intent to have the drillship or a substitute available through the pre-amended contract scheduled end date, in certain circumstances (including a 90 day notice of intent to use the rig prior to the original contract scheduled end date of February 1, 2018), the $95.9 million settlement was recorded as a deferred revenue liability at December 31, 2016. Amortization of deferred revenue began on April 1, 2017 and was fully amortized as of December 31, 2017 as Cobalt did not provide notice to the Company by November 2, 2017 (90 day notice of intent to use the rig). Customer Contract Termination and Settlement On May 23, 2016, the Company reached an agreement with FMOG and its parent company, FCX in connection with the drilling contract for the drillship Rowan Relentless ("FCX Agreement"), which was scheduled to terminate in June 2017. The FCX Agreement provided that the drilling contract be terminated immediately, and that FCX pay the Company $215 million to settle outstanding receivables and early termination of the contract, which was received in 2016. In addition, the Company received the right to receive up to two additional contingent payments from FCX, payable on September 30, 2017, of $10 million (the "First FCX Contingent Payment Provision") and $20 million (the "Second FCX Contingent Payment Provision" and, together with the First FCX Contingent Payment Provision, the "FCX Contingent Payments Provisions") depending on the average price of WTI crude oil over a 12 -month period beginning June 30, 2016. The FCX Contingent Payments Provisions would have been due if the average price over the period was greater than $50 per barrel with respect to the First FCX Contingent Payment Provision and $65 per barrel with respect to the Second FCX Contingent Payment Provision ("Price Targets"). During the quarter ended June 30, 2016, the Company recognized $173.2 million in revenue for the Rowan Relentless , including $130.9 million for the cancelled contract value, $6.2 million for the fair value of the derivative associated with the FCX Contingent Payments Provisions, $5.6 million for previously deferred revenue related to the contract, and $30.5 million for operations through May 22, 2016. For additional information related to the FCX Contingent Payments Provisions see Note 7 . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents Cash equivalents consist of highly liquid temporary cash investments with maturities no greater than three months at the time of purchase. Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable is stated at historical carrying value net of write-offs and allowance for doubtful accounts. The Company assesses the collectability of receivables and records adjustments to an allowance for doubtful accounts, which is recorded as an offset to accounts receivable, to cover the risk of credit losses. Any allowance is based on historical and other factors that predict collectability, including write-offs, recoveries and the evaluation and monitoring of credit quality. No allowance for doubtful accounts was required at December 31, 2018 or 2017 . The following table sets forth the components of Receivables - Trade and Other at December 31 (in millions): 2018 2017 Trade $ 231.7 $ 195.8 Income tax 12.0 8.0 Other 7.5 9.0 Total receivables - trade and other $ 251.2 $ 212.8 Property and Depreciation The Company provides depreciation for financial reporting purposes under the straight-line method over the asset’s estimated useful life from the date the asset is placed into service until it is sold or becomes fully depreciated. Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 2 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 2 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various Expenditures for new property or enhancements to existing property are capitalized and depreciated over the asset’s estimated useful life. As assets are sold or retired, property cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in results of operations. Expenditures for maintenance and repairs are charged to expense as incurred and totaled $139 million in 2018 , $113 million in 2017 and $118 million in 2016 . Impairment of Long-lived Assets The Company reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. For assets held and used, the Company determines recoverability by evaluating the undiscounted estimated future net cash flows based on projected day rates, operating costs, capital requirements and utilization of the asset under review. When the impairment of an asset is indicated, the Company measures the amount of impairment as the amount by which the asset’s carrying amount exceeds its estimated fair value. The Company measures fair value by estimating discounted future net cash flows under various operating scenarios (an income approach) and by assigning probabilities to each scenario in order to determine an expected value. The lowest level of inputs the Company uses to value assets held and used in the business are categorized as “significant unobservable inputs,” which are Level 3 inputs in the fair value hierarchy. For assets held for sale, the Company measures fair value based on equipment broker quotes, less anticipated selling costs, which are considered Level 3 inputs in the fair value hierarchy. Subsequent to the October 2018 announcement of the proposed combination with Ensco, the Company conducted an impairment test of our assets; however, the test resulted in no impairment as the estimated undiscounted cash flows from the assets exceeded the assets' carrying values. During the fourth quarter of 2017 , the Company conducted an impairment test of its assets; however, the tests resulted in no impairment as the estimated undiscounted cash flows from the assets exceeded the assets' carrying values. In 2016, the Company conducted an impairment test of its assets and determined that the carrying values for five of its jack-up drilling units aggregating $43.6 million were not recoverable and as a result, the Company recognized a non-cash impairment charge of $34.3 million in 2016. The Company measured fair values using the income approach described above. The fair value estimates required the Company to use significant unobservable inputs, which are internally developed assumptions not observable in the market, including assumptions related to future demand for drilling services, estimated availability of rigs and future day rates, among others. The impairments recognized in 2016 on the jack-up rigs are included in jack-up operations in the segment information in Note 14 . Impairment charges are included in Material charges and other operating items on the Consolidated Statements of Operations. Share-based Compensation The Company generally recognizes compensation cost for employee share-based awards on a straight-line basis over a 36 -month service period. For employees who are retirement-eligible at the grant date or who will become retirement-eligible within six months of the grant date, compensation cost is generally recognized over a minimum period of six months. Generally, compensation cost for employees who become retirement eligible after six months following the grant date but before the maximum service period which is typically 36 months is amortized over the period from the grant date to the date the employee meets the retirement eligibility requirements. Fair value of RSAs and RSUs awarded to employees is based on the average of the high and low market price of the shares on the date of grant. Prior to January 1, 2017, compensation cost was recognized for awards that were expected to vest and were adjusted in subsequent periods if actual forfeitures differed from estimates. Pursuant to the adoption of ASU No. 2016-09 as of January 1, 2017, the Company no longer estimates forfeitures, but rather adjusts its compensation costs in the period that actual forfeitures occur. Non-employee directors may annually elect to receive either Directors RSUs or Directors ND RSUs. Both Directors RSUs and Directors ND RSUs vest at the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant date. Directors ND RSUs are settled on the vesting date, while Director RSUs are not settled until the director terminates service from the Board. Both Directors ND RSUs and Directors RSUs are settled in cash, shares or a combination thereof at the discretion of the Company Compensation Committee. Compensation cost for both Director RSUs and Director ND RSUs are recognized over the service period which is up to one year. Directors RSUs and Directors ND RSUs are accounted for under the liability method of accounting, the fair value is based on the market price of the underlying shares on the grant date, and compensation expense is adjusted for changes in fair value at each report date through the settlement date. Performance-based awards consist of P-Units, in which the payment for 2018 awards is contingent on the Company's absolute TSR performance and relative TSR performance as measured against a group of companies selected by the Company Compensation Committee. For 2016 and 2017 awards, payment is contingent on the Company's TSR relative to the selected industry peer group. Fair value of P-Units is determined using a Monte-Carlo simulation model. P-Units may be settled in cash, shares or a combination thereof at the Company Compensation Committee's discretion. All P-Units are accounted for under the liability method of accounting. Compensation cost is generally recognized on a straight-line basis over the service period and is adjusted for changes in fair value at each report date through the end of the performance period. For P-Units granted in 2017 and 2018 , the Company recognizes compensation cost on the accelerated method for those retirement eligible or who will become retirement eligible during the vesting period as such awards provide for pro-rata vesting rather than full vesting if a retirement eligible employee retires prior to the end of the 36 month service period. Fair value of options is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of options, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company intends to share-settle options that are exercised and has therefore accounted for them as equity awards. Fair value of SARs is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of SARs, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company has not granted any SARs since 2013. The Company intends to share-settle SARs that are exercised and has therefore accounted for them as equity awards. Foreign Currency Transactions A substantial majority of the Company's revenue is received in USD, which is the Company's functional currency. However, in certain countries in which the Company operates, local laws or contracts may require some payments to be received in the local currency. The Company is exposed to foreign currency exchange risk to the extent the amount of its monetary assets denominated in the foreign currency differs from its obligations in that foreign currency. In order to mitigate the effect of exchange rate risk, the Company attempts to limit foreign currency holdings to the extent they are needed to pay liabilities in the local currency. At December 31, 2018 and 2017 , the Company held Egyptian pounds in the amount of $1.7 million and $2.8 million , respectively, of which $0.7 million and $2.2 million are classified as Other Assets on the Consolidated Balance Sheets. At December 31, 2018 and 2017 , the Company held Angolan Kwanza in the amount of $2.0 million and $4.3 million , respectively, of which $1.7 million and $4.3 million are classified as Other Assets on the Consolidated Balance Sheets. See the "Assets and Liabilities Measured at Fair Value on a Recurring Basis" section of Note 8 for further information. Non-USD transaction gains and losses are recognized in “other - net” on the Consolidated Statements of Income. The Company recognized net currency exchange losses of $3.4 million , $0.4 million and $9.7 million in 2018 , 2017 and 2016 , respectively. In 2016, the exchange loss was primarily due to the devaluation of the Egyptian pound. Income Taxes Rowan recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the financial statement and tax basis of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. Interest and penalties related to income taxes are included in income tax expense. The Company has elected the portfolio approach to release the stranded or disproportionate income tax effect in Accumulated other comprehensive income (loss) related to the pension and employee benefits plans. Under the portfolio approach, the disproportionate tax effect created by the release of the U.S. valuation allowance is reclassified from Accumulated other comprehensive income (loss) to continuing operations when the Company terminates the related plans. The Company has not provided deferred income taxes on certain undistributed earnings of non-U.K. subsidiaries. If facts and circumstances cause a change in expectations regarding future tax consequences, the resulting tax impact could have a material effect on the Company’s consolidated financial statements. Principles of Consolidation The consolidated financial statements include the Company's accounts and those of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Investments in operating entities where the Company has the ability to exercise significant influence, but where it does not control operating and financial policies are accounted for using the equity method. Significant influence generally exists if the Company has an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions. Equity in earnings of ARO, in the consolidated statements of operations, reflects the Company's proportionate share of ARO's net income, including any associated affiliate taxes. See the Note 4 for additional details related to the Company's equity method investment. Income (Loss) Per Common Share Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional weighted effect of dilutive securities outstanding during the period, which includes RSAs, RSUs, P-Units, share options and SARs granted under share-based compensation plans. The effect of share equivalents is not included in the computation for periods in which a net loss occurs because to do so would be anti-dilutive. A reconciliation of net income (loss) for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Net income (loss) $ (347.4 ) $ 72.7 $ 320.6 Income allocated to non-vested share awards — 0.1 1.5 Net income (loss) - adjusted for income allocated to non-vested share awards $ (347.4 ) $ 72.8 $ 322.1 A reconciliation of shares for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Average common shares outstanding 126.9 126.1 125.3 Effect of dilutive securities - share based compensation — 1.6 1.0 Average shares for diluted computations 126.9 127.7 126.3 Share options, SARs, RSAs, P-Units and RSUs granted under share-based compensation plans are anti-dilutive and excluded from diluted earnings per share when the hypothetical number of shares that could be repurchased under the treasury stock method exceeds the number of shares that can be exercised, or when the Company reports a net loss from continuing operations. Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions): 2018 2017 2016 Share options and appreciation rights $ 1.4 $ 1.5 $ 1.6 P-Units, RSAs and RSUs 5.7 2.1 0.9 Total potentially dilutive shares $ 7.1 $ 3.6 $ 2.5 Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) , which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. ASC 606 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective approach and applied ASC 606 to all outstanding revenue contracts. The adoption of this standard did not have a material impact on our statements of operations or statements of cash flows. In adopting ASC 606, the Company's revenue recognition differs from its historical revenue recognition pattern primarily as it relates to demobilization revenue. Such revenue, which was recognized upon completion of a contract under legacy accounting, is now estimated at contract inception and recognized over the term of the contract under the new guidance for customer contracts that have unconstrained demobilization provisions. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million increase to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Typical contractual arrangements The Company contracts its drilling rigs, related equipment and work crews primarily on a “day rate” basis. Under day rate contracts, the Company generally receives a fixed amount per day for each day it is performing drilling or related services. In addition, customers may pay all or a portion of the cost of moving equipment and personnel to and from the well site. Contracts generally range in duration from one month to multiple years or alternatively may be based on a set number of wells. Both duration types can include additional option periods at the discretion of the customer which can be at a set price or may be determined upon exercise of the option. The contractual day rate generally varies based on the status of the drilling operations and generally includes an operating rate, move rate, repair rate, force majeure rate, standby rate, or other fixed type of day rate specified in the contract. Other fees may be stipulated in the contract related to mobilization and demobilization of the rig, upfront preparation and/or upgrades, penalties, performance bonuses and reimbursements for third party charges or requested modifications. Termination clauses are also specified and generally allow the customer to cancel for lack of performance by the contractor with no related fee or for convenience for an early termination fee, typically calculated as a standby rate multiplied by the days remaining in the firm term in the contract often reduced by a specified percentage. Performance obligations and transaction price Customers generally contract for a comprehensive agreement to provide integrated services to operate a rig and drill a well. Drillers are seen by the operator as the overseer of all services and are compensating the driller to provide that entire suite of services. In identifying performance obligations, ASC 606 series guidance states that a contract may contain a single performance obligation composed of a series of distinct goods or services if 1) each distinct good or service is substantially the same and would meet the criteria to be a performance obligation satisfied over time and 2) each distinct good or service is measured using the same method as it relates to the satisfaction of the overall performance obligation. The Company determined that the delivery of day rate drilling services is within the scope of the series guidance as both criteria noted above are met. Specifically, 1) each distinct increment of service (i.e. hour available to drill) that the driller promises to transfer represents a performance obligation that would meet the criteria for recognizing revenue over time, and 2) the driller would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. Consideration for activities that are not distinct within the scope of our contracts, such as mobilization, demobilization and upgrade/modification, and do not align with a distinct time increment within the contract term are allocated across the single performance obligation and are recognized over the expected recognition period in proportion to the passage of each hour available to drill. Consideration for activities which align with a distinct time increment within the contract term is recognized in the period when the services are performed. The transaction price for a drilling contract is based on the amount of consideration the Company expects to be entitled for providing drilling services over the specified term and includes both fixed amounts and unconstrained variable amounts. Typically, at contract commencement, the only fixed/known consideration components of a drilling contract are negotiated lump-sum amounts to be received for reimbursement of costs incurred for mobilization, demobilization (where it is contractually guaranteed) and/or rig modifications or upgrades. The Company estimates variable consideration using the expected value method and includes the amount in transaction price to the extent it is not constrained. Variable consideration is generally constrained if it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Recognition of revenue Drilling services are consumed as the services are performed and generally enhance a well site which the customer/operator controls. Work performed on a well site does not create an asset with an alternative use to the contractor since the well/asset being worked on is owned by the customer. Therefore, the Company’s measure of progress for a drilling contract is hours available to drill over the contracted duration. This unit of measure is representative of an output method as described in ASC 606. The following chart details the types of fees found in a typical drilling contract and the related recognition method under ASC 606: Fee type Revenue Recognition Day rate Recognition is based on the day rates earned/invoiced as it relates to the level of service provided for each fractional-hour throughout the contract. Mobilization and upgrade/modification Revenue (both lump-sum and day rate amounts) is estimated at contract inception and included in the transaction price to be recognized over the expected recognition period. Demobilization Unconstrained demobilization revenue (both lump-sum and day rate amounts) is estimated at contract inception, included in the transaction price, and recognized over the expected recognition period in proportion to the passage of each hour available to drill. Bonuses and penalty Unconstrained bonus and/or penalty revenue is estimated at contract inception and included in the transaction price. Amounts are recognized in the period corresponding to the distinct hourly increment(s) of service provided (i.e. the specific period which the bonus or penalty relates to). Reimbursement Recognized (gross of costs incurred), at the point the product or service is consumed, and in the amount billed to the customer. Future performance obligation and financing arrangements Due to the recognition of day rate, as described above, the Company's primary future promised service relates to unconstrained demobilization. Under ASC 606 the Company recognizes unconstrained demobilization revenue over the life of the contract whereas in a typical drilling contract the demobilization, and the resulting cash payment for demobilization, does not occur until the end of the contract. At December 31, 2018 , the Company had a contract asset of $5.5 million for unconstrained demobilization revenue (see Note 3 ) related to the Company recognizing $5.5 million in unconstrained demobilization revenue into income during the year ended December 31, 2018 . We expect to recognize the remaining $5.9 million of our total estimated $11.4 million of unconstrained demobilization into revenue in 2019. We have applied the optional exemption afforded in ASU No. 2014-09 and have not disclosed the variable consideration related to the estimated future day rate revenues. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million increase to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Under ASC 606, a significant financing component may exist, regardless of whether the promise is explicitly stated or implied by the payment terms stipulated in a contract, where there is a separation between the timing of services provided and the timing of payment in contracts with terms exceeding one year. Generally, a typical drilling contract stipulates for billings on a monthly basis and payment terms vary by contract and customer but are customarily paid within 90 days. It is rare for a drilling contract to explicitly address a financing component and payments of up-front fees correspond to cash outlays which Rowan must undertake in order to complete a given drilling contract. Recently Adopted Accounting Pronouncements - In addition to Revenue from Contracts with Customers (ASC 606) (see "Revenue Recognition" above), the Company has recently adopted the following accounting pronouncements: Statement of Cash Flows - In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its consolidated financial statements. Statement of Cash Flows Restricted Cash - In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees with the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no impact on its consolidated financial statements. Other Income - In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASU 2017-05”), which clarifies the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. As of January 1, 2018, the Company adopted this guidance on a modified retrospective basis concurrently with ASC 606. This adoption had no impact on the Company's consolidated financial statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (ASC 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Entities will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The ASU also allows only the service cost component to be eligible for capitalization. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its consolidated financial statements. Accumulated Other Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (ASC 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. As permitted under this ASU, the Company elected early adoption of this ASU as of January 1, 2018 and recorded a $45.6 million increase to Retained earnings as a reclassification from Accumulated other comprehensive income. The stranded tax effects are for the U.S. income tax rate reduction recognized in the Consolidated Statements of Operations for the year ended December 31, 2017 for the deferred tax asset associated with employee benefit plans. Accounting Pronouncements - to be Adopted Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) : Amendments to the FASB ASC, which requires an entity to recognize lease assets and lease liabilities on the balance sheet and provide enhanced disclosures. Leases will continue to be classified as either finance (capital lease under ASC 840) or operating. Based on the original guidance, lessees and lessors would have been required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU No. 2018-11, Leases (ASC 842): Targeted Improvements , which provides entities with an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions, as described below. ASC 842 is effective for annual and interim periods beginning after December 15, 2018. The Company adopted ASC 842 effective January 1, 2019 using a modified retrospective method and has elected to not retrospectively adjust amounts presented for prior periods. In addition, we will take advantage of various practical expedients, provided by the ASC 842, including: • use of the transition package of practical expedients which, among other things, allows us to carryforward the historical lease classification for existing leases; • making an accounting policy election that will keep leases with an initial term of 12 months or less off the balance sheet; and • not separating non-lease components from lease components for all classes of underlying lease assets. Prior to the issuance of ASU No. 2018-11, the Company preliminarily determined that its drilling contracts contained a lease component, and the adoption would require the Company to separately recognize revenue associated with the lease and services components. In July 2018, the FASB issued ASU No. 2018-11, which provides a practical expedient that allows entities to combine lease and non-lease components where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. In connection with the adoption of ASC 842, the Company has been working with the International Association of Drilling Contractors Accounting Sub-committee and has determined that its drilling contracts (excluding bareboat charter contracts with ARO where the Company provides the rig without providing any drilling services) are predominantly service contracts in nature and will therefore account for these contracts under ASC 606. The adoption of ASC 842 will have an impact on our consolidated balance sheets and disclosures contained in our notes to consolidated financial statements. Based on our portfolio of leases where we are the lessee, we will recognize between $10 million and $20 million of right of use lease assets and lease liabilities on our balance sheet upon adoption, primarily relating to real estate and other miscellaneous equipment. We do not expect the adoption of ASC 842 to have a material impact on our consolidated statements of operations or cash flows. Financial Instruments – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of fina |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract Assets and Contract Liabilities [Text Block] | Contract Assets, Deferred Contract Costs Asset and Contract Liabilities Costs incurred for mobilization, upfront modifications/upgrades and contract preparation are direct costs incurred to fulfill contracts and are expensed over the expected recognition period in the event they are deemed recoverable or in the case of capital upgrades or capital modifications such costs are capitalized and depreciated in accordance with the Company's fixed asset capitalization policy. Such costs other than those capitalized as fixed assets are deferred and recorded as deferred contract costs. Demobilization contract assets reflect the amount of unconstrained demobilization revenue recognized for which the Company's entitlement to invoice the customer is dependent on future performance. The following table sets forth deferred contract costs, demobilization contract assets and deferred revenue on the Consolidated Balance Sheets (in millions): December 31, Balance Sheet Classification 2018 2017 Deferred Contract Costs and Demobilization Contract Assets Current Prepaid expenses and other current assets $ 8.7 $ 2.8 Noncurrent Other assets 0.4 — $ 9.1 $ 2.8 Deferred Revenue - Contract Liabilities Current Deferred revenue $ 16.7 $ 1.1 Noncurrent Other liabilities 19.1 0.5 $ 35.8 $ 1.6 Presented in the table below are the changes in deferred contract costs during the year ended December 31 (in millions): 2018 Deferred Contract Costs Asset Beginning balance $ 2.8 Plus: contractual additions 8.9 Less: amortization 8.1 Ending balance $ 3.6 Presented in the table below are the changes in contract assets (see Note 2 ) during the year ended December 31 (in millions): 2018 Contract Assets - Demobilization Beginning balance $ — Plus: contractual additions 5.5 Ending balance $ 5.5 Presented in the table below are the changes in deferred revenue during the year ended December 31 (in millions): 2018 Deferred Revenue - Deferred mobilization and upgrade/modification revenue Beginning balance $ 1.6 Plus: contractual additions (1) 51.0 Less: amortization 16.8 Ending balance $ 35.8 (1) Includes $28.6 million of deferred revenue related to capital expenditures for the Bess Brants , Earnest Dees , EXL I and EXL IV (all leased to ARO) to be received as reimbursement from ARO. A receivable of $28.6 million is included in Receivables - trade and other on the Consolidated Balance Sheet at December 31, 2018. Estimated future amortization at December 31, 2018 of our deferred revenue and deferred contract costs to be recognized over the expected recognition period is set forth in the following table (in millions): 2019 2020 2021 2022 Total Amortization of deferred revenue $ 16.7 $ 9.6 $ 8.5 $ 1.0 $ 35.8 Amortization of deferred contract costs 3.2 0.2 0.2 — 3.6 No impairment losses were recognized on contract assets during the year ended December 31, 2018 . |
EQUITY METHOD INVESTMENTS AND V
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Equity Method Investments and Variable Interest Entities On November 21, 2016, Rowan and Saudi Aramco, through their subsidiaries, entered into a Shareholders’ Agreement to create a 50 / 50 joint venture, known as ARO (see Note 1 ). ARO commenced operations on October 17, 2017 and owns, manages and operates offshore drilling units in Saudi Arabia. The Company accounts for its interest in ARO using the equity method of accounting and only recognizes its portion of equity earnings in the Company's consolidated financial statements. ARO is a variable interest entity; however, the Company is not the primary beneficiary and therefore does not consolidate ARO. The Company's judgment regarding the level of influence over ARO included considering key factors such as: each company's ownership interest, representation on the board of managers of ARO, ability to direct activities that most significantly impact ARO's economic performance, as well as the ability to influence policy-making decisions. Summarized financial information Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions): Year ended October 17, 2017 to December 31, 2018 December 31, 2017 Revenue $ 348.8 $ 48.6 Direct operating costs (excluding items below) 194.0 22.2 Depreciation and amortization 67.4 12.9 Selling, general and administrative 27.0 6.1 (Gain) loss on disposals of property and equipment 1.4 (0.1 ) Income from Operations 59.0 7.5 Interest expense (26.2 ) (4.2 ) Provision for income taxes 12.3 1.6 Net Income $ 20.5 $ 1.7 Rowan's equity in earnings from ARO $ 10.3 $ 0.9 December 31, 2018 December 31, 2017 Current assets $ 348.9 $ 108.6 Non-current assets 727.0 459.7 Total assets $ 1,075.9 $ 568.3 Current liabilities $ 112.2 $ 29.2 Non-current liabilities 949.1 545.1 Total liabilities $ 1,061.3 $ 574.3 Related party transactions In October 2017 and October 2018, the Company contributed cash to ARO in exchange for a 10-year shareholder note receivable from ARO, at a stated interest rate of LIBOR plus two percent (See Note 1 ). Interest is being recognized as a part of Interest income in the Company's Consolidated Statements of Operations and totaled approximately $12.9 million for the year ended December 31, 2018 , and $2.1 million for the period from October 17, 2017 to December 31, 2017. Interest was received in kind and accreted to the note in 2018. Activity related to the shareholder note receivable (in millions): Long-term note receivable from unconsolidated subsidiary 2018 2017 Beginning Balance January 1, $ 270.2 $ — Origination 271.3 357.7 See Note 1 Repayments (2) (98.5 ) (87.5 ) See Note 1 Interest in kind 12.0 — Other 1.0 1.1 Total 456.0 271.3 Less: Current Portion (1) — 1.1 Ending Balance December 31, $ 456.0 $ 270.2 (1) Included in Receivables - trade and other on the Company's Consolidated Balance Sheet. (2) Includes excess cash distributed back to Rowan in October of 2018 and October 2017 (See Note 1 ). In conjunction with the establishment of ARO, the Company entered into a series of agreements with ARO including: a Transition Services Agreement, Secondment Agreement and Lease Agreements. There is also an agreement between the Company and ARO, pursuant to which ARO will reimburse the Company for certain Capital Expenditures related to four rigs leased to ARO (See Note 3 ). Pursuant to these agreements the Company, or its seconded employees, will provide various services to ARO, and in return, the Company is to be provided remuneration for those services. From time to time Rowan may sell equipment or supplies to ARO. Revenue and other amounts recognized by Rowan related to these agreements and transactions is as follows (in millions): Year ended October 17, 2017 to December 31, 2018 December 31, 2017 Secondment Revenue - Jack-ups $ 55.9 $ 9.2 Lease and related Revenue - Jack-ups 24.4 — Transition Services Revenue - Unallocated 33.8 7.4 Sales of supplies - Jack-ups 5.0 0.5 Total Revenue received from ARO $ 119.1 $ 17.1 Reimbursement of preparation costs (a) $ — $ 1.6 Proceeds from equipment sales to ARO (b) 10.8 1.0 (a) For the year ended December 31, 2017, the reimbursement resulted in a reduction in expense of $1.3 million and a $0.3 million decrease to Prepaid expenses and other current assets. The entire $1.6 million was included in Receivables - trade and other at December 31, 2017 for the amount to be reimbursed. (b) A gain of $1.2 million for the year ended December 31, 2018 was recognized in Loss on disposals of property and equipment on the Consolidated Statements of Operations. There was no gain or loss recognized for the year ended December 31, 2017. $3.5 million and $1.0 million is included in Receivables - trade and other as of December 31, 2018 and 2017, respectively, for the $10.8 million and $1.0 million purchase price, respectively. Total Accounts receivable from ARO totaled approximately $68.8 million and $17.3 million as of December 31, 2018 and 2017 , respectively, and are included in Receivables - trade and other on the Consolidated Balance Sheets. The Company also entered into a Rig Management Agreement pursuant to which ARO provided certain rig management services for Rowan's rigs while they were contracted with Saudi Aramco and the Company compensated ARO for the services in which they provided to Rowan. There were no rigs managed by ARO at December 31, 2018. For the year ended December 31, 2018 and the period from October 17, 2017 to December 31, 2017 , the Company recognized $33.5 million and $7.8 million , respectively, in Direct operating cost in the Consolidated Statements of Operations related to these rig management services. Additionally, ARO may sell equipment or supplies to Rowan or purchase such for Rowan, in which case ARO is provided reimbursement. For the year ended December 31, 2018 and the period from October 17, 2017 to December 31, 2017 , the Company recognized $4.4 million and $0.6 million , respectively, in Direct operating cost in the Consolidated Statements of Operations related to these transactions. Additionally, during 2018 the Company purchased equipment from ARO for $6.4 million , of which $1.5 million was included in accounts payable as accrued and unpaid capital expenditures as of December 31, 2018 . The Company had $2.4 million included in accounts payable as accrued and unpaid capital expenditures as of December 31, 2017 . Accounts payable to ARO totaled approximately $6.1 million and $10.8 million as of December 31, 2018 and 2017 , respectively. The following summarizes the total assets and liabilities as reflected in the Company's consolidated balance sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any receivable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO. December 31, 2018 December 31, 2017 Total assets $ 566.0 $ 319.5 Total liabilities 6.1 10.8 Maximum exposure to loss $ 559.9 $ 308.7 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities at December 31 consisted of the following (in millions): 2018 2017 Pension and other postretirement benefits $ 16.8 $ 27.0 Compensation and related employee costs 45.0 69.0 Interest 34.0 32.0 Income taxes 7.1 15.4 Other 10.5 15.7 Total accrued liabilities $ 113.4 $ 159.1 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt at December 31 consisted of the following (in millions): 2018 2017 7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate) $ 201.2 $ 200.9 4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate) 623.8 624.6 4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate) 396.3 395.9 7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate) 497.8 497.5 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate) 395.3 395.1 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396.5 396.3 Total carrying value 2,510.9 2,510.3 Current portion (1) 201.2 — Carrying value, less current portion $ 2,309.7 $ 2,510.3 (1) Current portion of long-term debt at December 31, 2018 included the 7.875% Senior Notes due in August 2019. The following is a summary of scheduled long-term debt maturities by year, as of December 31, 2018 (in millions): 2019 $ 201.4 2020 — 2021 — 2022 620.8 2023 — Thereafter 1,698.1 $ 2,520.3 Revolving Credit Facility On May 22, 2018, the Company amended and restated its Existing Credit Agreement, which permitted, among other things, entry into the New Credit Agreement and a non-pro rata commitment reduction (the "Commitment Reduction") for each lender under the Existing Credit Agreement who became a lender under the New Credit Facility. The Existing Credit Agreement further provided for, among other things; (i) the reduction of the Existing Credit Agreement's letter of credit subfacility to $0 , (ii) the Commitment Reduction and (iii) the resignation of Wells Fargo as administrative agent and appointment of Wilmington Trust, National Association, as successor administrative agent under the Existing Credit Agreement. The Commitment Reduction resulted in the lenders under the New Credit Facility having no commitments under the Existing Credit Facility and reduced the aggregate principal amount of commitments under the Existing Credit Facility to $310.7 million . Of the $310.7 million of availability under the Existing Credit Facility, $60.0 million of the availability matures on January 23, 2019, $150.7 million of the availability matures on January 23, 2020, and the remaining $100.0 million of the availability matures on January 23, 2021. Availability under the Existing Credit Facility was $310.7 million at December 31, 2018 , as no amounts were drawn. Advances under the Existing Credit Facility bear interest at LIBOR or base rate as specified in the Existing Credit Agreement plus an applicable margin, which is dependent upon the Company's credit ratings. The applicable margins for LIBOR and base rate advances range from 1.125% - 2.0% and 0.125% - 1.0% , respectively. The Company is also required to pay a commitment fee on undrawn amounts of the Existing Credit Facility, which ranges from 0.125% to 0.35% , depending on the Company's credit ratings. The Existing Credit Facility requires the Company to maintain a total debt-to-capitalization ratio of less than or equal to 60% . The Company's consolidated debt to total capitalization ratio at December 31, 2018 , was 33% . Additionally, the Existing Credit Facility has customary restrictive covenants that, including others, restrict the Company's ability to incur certain debt and liens, enter into certain merger and acquisition agreements, sell, transfer, lease or otherwise dispose of all or substantially all of the Company's assets and substantially change the character of the Company's business from contract drilling. Availability under the New Credit Facility is $955.0 million , which matures on May 22, 2023; provided, however, that if the Company's 2022 Notes are not refinanced in full on or prior to February 1, 2022, the maturity date will be February 1, 2022. The New Credit Agreement currently provides for a swingline subfacility in the amount of $50 million , and a letter of credit subfacility in the amount of $129 million , with the ability to increase such amounts (subject to certain lenders agreeing to become issuers of letters of credit following the closing date). Borrowings under the New Credit Facility may be used for working capital and other general corporate purposes. The New Credit Agreement also includes restrictions on borrowings if, after giving effect to any such borrowings and the application of the proceeds thereof, the aggregate amount of the Company’s cash-on-hand, subject to certain exceptions, would exceed $200 million . As of December 31, 2018 , no amounts were outstanding and $6.8 million in letters of credit had been issued under the New Credit Facility leaving remaining availability of $948.2 million . Subject to the successful procurement of additional commitments from new or existing lenders, borrower may elect to increase the maximum amount available under the New Credit Facility from $955.0 million by an additional amount not to exceed $250 million . Revolving borrowings under the New Credit Facility bear interest, at the Company's option, at either (a) the sum of LIBOR plus a margin ranging between 2.75% to 4.25% , depending on the credit rating of the Company, or (b) the sum of a base rate specified in the New Credit Agreement, plus a margin ranging between 1.75% to 3.25% , depending on the credit rating of the Company. The Company is also required to pay a commitment fee on undrawn amounts of the New Credit Agreement, which ranges from 0.375% to 0.7% depending on the Company's credit rating. The New Credit Agreement contains certain financial covenants applicable to the Company, including: (i) a covenant restricting debt to total tangible capitalization to not greater than 55% at the end of each fiscal quarter, (ii) a minimum liquidity requirement of $300.0 million , (iii) a covenant that the ratio of the net book value of the Company's drilling rigs either marketed or under contract with a customer to the sum of commitments under the New Credit Agreement, the commitments under the Existing Credit Agreement plus any other indebtedness of the borrower and guarantors (other than unsecured intercompany indebtedness that is contractually subordinated to the obligations under the New Credit Agreement) that is secured by a lien, guaranteed by, or has an obligor who is a subsidiary of Rowan plc, in each case, that directly owns or operates a drilling rig, is not less than 3:00 to 1:00 at the end of each fiscal quarter (the "Marketed Rig Value Ratio") and (iv) a covenant that the ratio of (A) the net book value of the Company's drilling rigs, subject to certain exclusions, that are directly wholly owned by Rowan plc and its subsidiaries who are borrowers or guarantors under the New Credit Facility to (B) the net book value of all drilling rigs owned by the Company and certain of its local content affiliates, is not less than 80% at the end of each fiscal quarter (the "Guaranteed Rig Value Ratio"). As of December 31, 2018 , the Company was in compliance with each of the financial covenants under the New Credit Agreement as follows: Min/Max Value as of Financial covenant Requirement December 31, 2018 Debt to capitalization Ratio 55 % 33 % Liquidity (in millions) $ 300.0 $ 2,285.6 Marketed Rig Value Ratio 3.00 4.10 Guaranteed Rig Value Ratio 80 % 86 % The New Credit Agreement also contains additional covenants generally applicable to the Company and its subsidiaries that the Company considers usual and customary for an agreement of this type, including compliance with laws (including environmental laws, ERISA and anti-corruption and sanctions laws), delivery of quarterly and annual financial statements, maintenance and operation of property, restrictions on investments, asset sales, the incurrence of liens and indebtedness, mergers and other fundamental changes, restricted payments, repurchases and redemptions of indebtedness and equity, sale and leaseback transactions and transactions with affiliates. Borrowings under the New Credit Facility are subject to acceleration upon the occurrence of events of default that the Company considers usual and customary for an agreement of this type. Debt Reductions During the first half of 2016, the Company paid $45.2 million in cash to retire $47.9 million aggregate principal amount of the 2017 Notes and the 2019 Notes, and recognized a $2.4 million gain on early extinguishment of debt. In December 2016, the Company commenced cash tender offers for $750 million aggregate principal amount of the Subject Notes issued by the Company (the "Tender Offers"). The Tender Offers expired on January 3, 2017; however, there was also an early tender expiration on December 16, 2016, which provided for an early tender premium. Subject Notes validly tendered and accepted for purchase prior to the early tender expiration time on December 16, 2016, received tender offer consideration plus an early tender premium. As a result of the Tender Offers, in December 2016, the Company paid $490.5 million to repurchase $463.9 million aggregate principal amount of outstanding Subject Notes, consisting of $265.5 million of the 2017 Notes, $186.7 million of the 2019 Notes, $9.8 million of the 2022 Notes and $1.9 million of the 2024 Notes, and recognized a $33.6 million loss on the early extinguishment of debt which included approximately $5.9 million of bank and legal fees. On December 19, 2016, Rowan plc, as guarantor, and its 100% owned subsidiary, RCI, as issuer, completed the issuance of $500 million aggregate principal amount of the 2025 Notes at a price of 100% of the principal amount. The Company used the net proceeds of the offering, approximately $492 million , along with cash on hand, to fund the repurchase of Subject Notes pursuant to the Tender Offers. $5.3 million of the cash paid to the underwriting banks in the form of the underwriters discount and structuring fee was expensed and included in the $33.6 million loss on early extinguishment of debt related to the Tender Offers. Interest on the 2025 Notes is payable on June 15 and December 15 of each year. In January 2017, at the expiration of the Tender Offers, the Company paid $32.8 million to repurchase an additional $34.6 million aggregate principal amount of outstanding Subject Notes, consisting of $0.1 million of the 2017 Notes, $0.9 million of the 2019 Notes and $33.6 million of the 2022 Notes. The Company recognized a $2.0 million gain on the early extinguishment of debt. On January 9, 2017, the Company called for redemption $92.1 million aggregate principal amount of the 2017 Notes that remained outstanding and on February 8, 2017, the Company paid $94.0 million to redeem such notes and recognized a $2.1 million loss on early extinguishment of debt. In the second quarter of 2017, the Company paid $33.5 million in cash to retire $35.8 million aggregate principal amount of the 2022 Notes and recognized a $2.4 million gain on early extinguishment of debt. In July 2017, the Company paid $7.0 million in cash to retire $6.5 million aggregate principal amount of the 2019 Notes and recognized a $0.5 million loss on early extinguishment of debt. Debt Guarantee and Other Provisions The Senior Notes are RCI’s senior unsecured obligations and rank senior in right of payment to all of its subordinated indebtedness and pari passu in right of payment with any of RCI’s future senior indebtedness, including any indebtedness under RCI’s senior Existing Credit Facility. The Senior Notes rank effectively junior to RCI’s future secured indebtedness, if any, to the extent of the value of its assets constituting collateral securing that indebtedness and to all existing and future indebtedness of its subsidiaries (other than indebtedness and liabilities owed to RCI). The Senior Notes are fully and unconditionally guaranteed on a senior and unsecured basis by Rowan plc. (see Note 18 ) All or part of the Senior Notes may be redeemed at any time for an amount equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date plus the applicable make-whole premium, if any. The 2025 Notes contain a provision whereby upon a change of control repurchase event, as defined in the indenture governing the 2025 Notes, the Company may be required to make an offer to repurchase all outstanding notes at a price in cash equal to 101% of the aggregate principal amount of the notes repurchased, plus any accrued and unpaid interest to the repurchase date. Otherwise, the 2025 Notes contain substantially the same provisions as the Company’s other Senior Notes. Other provisions of the Company's debt agreements limit the ability of the Company to create liens that secure debt, engage in sale and leaseback transactions, merge or consolidate with another company and, in the event of noncompliance, restrict investment activities and asset purchases and sales, among other things. The Company was in compliance with its debt covenants at December 31, 2018 . |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES In 2016, the Company determined that the FCX Contingent Payments Provisions resulting from the contract termination with FMOG (See Note 1 ) were freestanding financial instruments and that they each met the criteria of a derivative instrument. The FCX Contingent Payments Provisions were initially recorded to revenue at a fair value of $6.2 million on May 23, 2016, and were revalued at each reporting date with changes in the fair value reported as non-operating income or expense. The fair value of the FCX Contingent Payments Provisions was determined using a Monte Carlo simulation (see Note 8 ). In January 2017, the Company and FCX settled the First FCX Contingent Payment Provision with a $6.0 million payment received by the Company. At maturity, the value of the Second FCX Contingent Payment Provision was zero based on the actual results of the average price of WTI crude oil over the period determined in the agreement; therefore, no payment was due to the Company. The following table provides the revaluation effect of the Company’s derivative on the Consolidated Statements of Operations (in millions): Amount of gain (loss) recognized in income (loss) Derivative Classification of gain (loss) recognized in income (loss) Year ended December 31, 2017 Year ended December 31, 2016 FCX Contingent Payments Provisions Other - net $ (0.1 ) $ (0.1 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by US GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are: • Level 1 – Quoted prices for identical instruments in active markets; • Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example. The applicable level within the fair value hierarchy is the lowest level of any input that is significant to the fair value measurement. Derivative The fair values of the FCX Contingent Payments Provisions (Level 3) were estimated using a Monte Carlo simulation model, which calculated the probabilities of the daily closing WTI spot price exceeding the Price Targets on a daily averaging basis during the 12 -month payment measurement period ending on June 30, 2017. The probabilities were applied to the payout at each price target to calculate the probability-weighted expected payout. The following were the significant inputs used in the valuation of the FCX Contingent Payments Provisions: the WTI Spot Price on the valuation date, the expected volatility, and the risk-free interest rate, and the slope of the WTI forward curve, which were $47.48 , 37.5% , 0.765% and 5.5% at May 23, 2016, respectively, and $53.72 , 28.557% , 0.734% , and 11.205% at December 31, 2016 , respectively. The expected volatility was estimated from the implied volatility rates of WTI crude futures. The risk-free rate was based on yields of U.S. Treasury securities commensurate with the remaining term of the FXC Contingent Payments. At December 31, 2016 , the Company valued the FCX Contingent Payments Provisions in the amount of $6.1 million which was classified as Prepaid expenses and other current assets on the Consolidated Balance Sheet. In January 2017, the Company and FCX settled the First FCX Contingent Payment Provision with a $6.0 million payment received by the Company (see Note 1 ). The Second FCX Contingent Payment Provision had no value at maturity, as the average price of WTI crude oil did not meet the terms specified in the FCX Agreement; therefore, no payment was due to the Company (see Note 7 ). Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis are presented below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) December 31, 2018: Assets - cash equivalents $ 990.5 $ 990.5 $ — $ — Other assets (Egyptian Pounds) 0.7 0.7 — — Other assets (Angolan Kwanza) 1.7 1.7 — — December 31, 2017: Assets - cash equivalents $ 1,332.1 $ 1,332.1 $ — $ — Other assets (Egyptian Pounds) 2.2 2.2 — — Other assets (Angolan Kwanza) 4.3 4.3 — — At December 31, 2018 and 2017 , the Company held Egyptian pounds in the amount of $0.7 million and $2.2 million , respectively, which are classified as Other assets on the Consolidated Balance Sheets. The Company ceased drilling operations in Egypt in 2014, and is currently working to obtain access to the funds for use outside Egypt to the extent they are not utilized. Given stricter foreign currency exchange controls in Angola, the Company determined in May 2017 that its previous method of converting Angola Kwanza to USD is likely no longer feasible. As a result, at December 31, 2018 and 2017 , the Company classified its Angolan Kwanza USD equivalent balance of $1.7 million and 4.3 million , respectively, as non-current assets in Other assets on the Consolidated Balance Sheets. Currently, the Company considers the amounts to be recoverable and will continue to evaluate options to convert the Angolan Kwanza to USD. Trade receivables and trade payables, which are required to be measured at fair value, have carrying values that approximate their fair values due to their short maturities. Assets Measured at Fair Value on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis and whose carrying values were remeasured during the years ended December 31 are set forth below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total gains (losses) 2016: Property and equipment, net (1) $ 9.3 $ — $ — $ 9.3 $ (34.3 ) (1) This represents a non-recurring fair value measurement made at September 30, 2016 for five jack-up drilling units. In 2016, the Company recognized non-cash asset impairment charges aggregating $34.3 million on five of its jack-up drilling units having an aggregate net carrying value of $43.6 million prior to the write-down. Two of these jack-up drilling units were sold in the fourth quarter of 2016 for gross proceeds of approximately $5.0 million and the Company recognized a net loss on sale of $1.2 million . Impairment charges are included in Material Charges and Other Operating Items on the Consolidated Statements of Operations (see "Impairment of Long-lived Assets" in Note 2 ). The financial information for these rigs has been reported as part of the Jack-ups segment. Other Fair Value Measurements Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. The Company's publicly traded debt securities had a carrying value of $2.511 billion at December 31, 2018 , and an estimated fair value at that date aggregating $1.881 billion , compared to a carrying and fair value of $2.510 billion and $2.262 billion , respectively, at December 31, 2017 . Fair values of the Company's publicly traded debt securities were provided by a broker who makes a market in such securities and were measured using a market-approach valuation technique, which is a Level 2 fair value measurement. Concentrations of Credit Risk The Company invests its excess cash primarily in time deposits and high-quality money market accounts at several large commercial banks with strong credit ratings, and therefore believes that its risk of loss is minimal. The Company’s customers largely consist of major international oil companies, national oil companies and large investment-grade exploration and production companies. The Company routinely evaluates and monitors the credit quality of potential and current customers. The Company maintains reserves for credit losses when necessary and actual losses have been within management's expectations. Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the years ended December 31 are set forth below: Percentage of revenue from major customers: Years ended December 31, Customer Segment 2018 2017 2016 Saudi Aramco Jack-ups 28 % 29 % 20 % Anadarko Deepwater 14 % 17 % 8 % ARO Drilling (1) Jack-ups and Unallocated and other 14 % 1 % — % BP Trinidad and Tobago Jack-ups 10 % 6 % 5 % Repsol Deepwater and Jack-ups 2 % 7 % 12 % ConocoPhillips Jack-ups 2 % 7 % 11 % Freeport-McMoRan Deepwater and Jack-ups 1 % — % 12 % Cobalt International (2) Deepwater — % 14 % 12 % (1) Includes revenue related to services provided to ARO (see Note 4 ). (2) The year ended December 31, 2017, includes amortization of $95.9 million of revenue deferred in 2016 related to a contract amendment to the Company's subsidiary's drilling contract with Cobalt International (See Note 1 ). Percentage of receivables from major customers: December 31, Customer Segment 2018 2017 Saudi Aramco Jack-ups 21 % 34 % Anadarko Deepwater — % 19 % ARO Drilling (1) Jack-ups and Unallocated and other 30 % 9 % BP Trinidad and Tobago Jack-ups 9 % 6 % Repsol Deepwater and Jack-ups 4 % 5 % ConocoPhillips Jack-ups — % 8 % Freeport-McMoRan Deepwater and Jack-ups 1 % — % Cobalt International Deepwater — % — % (1) Includes receivables related to services provided to ARO (see Note 4 ). |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES The Company has operating leases covering office space and equipment. Certain of the leases are subject to escalations based on increases in building operating costs. Rental expense attributable to continuing operations was $7.4 million , $11.4 million and $10.6 million in 2018 , 2017 and 2016 , respectively. At December 31, 2018 , future minimum payments to be made under noncancelable operating leases were as follows (in millions): 2019 $ 7.6 2020 5.1 2021 1.9 2022 1.8 2023 1.8 Later years 10.0 $ 28.2 The Company had commitments for purchase obligations totaling $128.0 million at December 31, 2018 . Letters of credit – The Company periodically employs letters of credit in the normal course of its business and had outstanding letters of credit of approximately $9.1 million at December 31, 2018 , of which $6.8 million were issued under the Company's New Credit Facility. Joint venture funding obligations – Each of Rowan and Saudi Aramco have agreed to take all steps necessary to ensure that ARO purchases at least 20 new build jack-up rigs ratably over 10 years once Saudi Aramco's joint venture to manufacture rigs commences operations. The first rig is expected to be delivered as early as 2021. Rowan and Saudi Aramco intend that the newbuild jack-up rigs will be financed out of available cash from operations and/or funds available from third party debt financing. The parties agreed that Saudi Aramco as a customer will provide drilling contracts to ARO in connection with the acquisition of the new rigs, which contracts could be used as security for third party debt financing if needed. If cash from operations or financing is not available to fund the cost of the newbuild jack-up rig, each partner is obligated to contribute funds, in the form of additional shareholder loans, to purchase such rigs, over time of up to a maximum amount of $1.25 billion per partner in the aggregate for all 20 newbuild jack-up rigs, which total investment amount is subject to a reduction formula as rigs are delivered. Further, no shareholder will be required to fund the delivery of more than three rigs during any twelve (12) month period. Uncertain tax positions – The Company has been advised by the IRS of proposed unfavorable tax adjustments of $85 million including applicable penalties for the open tax years 2009 through 2012. The unfavorable tax adjustments primarily related to the following items: 2009 tax benefits recognized as a result of applying the facts of a third-party tax case that provided favorable tax treatment for certain non-U.S. contracts entered into in prior years to the Company’s situation; transfer pricing; and domestic production activity deduction. The Company has protested the proposed adjustment. However, the IRS does not agree with the Company's protest and they have submitted the proposed unfavorable tax adjustments to be reviewed by the IRS appeals group. In years subsequent to 2012, the Company has similar positions that could be subject to adjustments for the open years. The Company has provided for amounts that it believes will be ultimately payable under the proposed adjustments and intends to vigorously defend its positions; however, if the Company determines the provisions for these matters to be inadequate due to new information or the Company is required to pay a significant amount of additional U.S. taxes and applicable penalties and interest in excess of amounts that have been provided for these matters, the Company's consolidated results of operations and cash flows could be materially and adversely affected. The gross unrecognized tax benefits excluding penalties and interest are $98 million and $102 million as of December 31, 2018 and 2017 , respectively. The decrease to gross unrecognized tax benefits was primarily due to the lapse in statutes of limitation, partially offset by tax positions taken related to current year anticipated transfer pricing positions and potential audit settlement. If the December 31, 2018 net unrecognized tax benefits excluding penalties and interest were recognized, this would favorably impact the Company's tax provision by $35 million . It is reasonable that the existing liabilities for the unrecognized tax benefits may increase or decrease over the next 12 months as a result of audit closures and statute expirations, however, the ultimate timing of the resolution and/or closure of audits is highly uncertain. Pending or threatened litigation – The Company is involved in various routine legal proceedings incidental to its businesses and vigorously defends its position in all such matters. Although the outcome of such proceedings cannot be predicted with certainty, the Company believes that there are no known contingencies, claims or lawsuits that will have a material adverse effect on its financial position, results of operations or cash flows. In addition to the legal proceedings described above, the Company received a claim in February 2018 by a former agent in the Middle East for compensation associated with the Company's termination of the agent's services. As of December 31, 2018 , this matter has been resolved. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS Under the Plan, the Company Compensation Committee is authorized to grant employees and non-employee directors incentive awards in the form of RSAs, RSUs, options and SARs. In addition, the Company Compensation Committee may grant performance-based awards under the Plan (such as P-Units which may be settled in shares, cash, or a combination thereof at the discretion of the Company Compensation Committee), for which the amount earned is dependent on the achievement of certain market or performance conditions over a specified period. As of December 31, 2018 , there were 7,075,015 shares available for future grant under the Plan. Shares issued to satisfy awards to employees are issued from the Company's EBT which are deemed treasury shares, while shares issued to satisfy awards to non-employee directors are newly issued shares. Compensation cost charged to expense under all share-based incentive awards is presented below (in millions): 2018 2017 2016 Restricted shares and restricted share units $ 18.0 $ 19.3 $ 21.8 Share appreciation rights — — 0.2 Performance-based awards 6.0 9.7 12.6 Total compensation cost $ 24.0 $ 29.0 $ 34.6 As of December 31, 2018 , unrecognized compensation cost related to nonvested share-based compensation arrangements totaled $28.2 million , which is expected to be recognized over a weighted-average period of 1.6 years. Restricted Shares (Employees and Non-employee Directors) – RSAs represent ordinary shares subject to a vesting period that restricts its sale or transfer until the vesting period ends. Activity related to RSAs for the year ended December 31, 2018 , is summarized below: Number of Shares Weighted-average grant-date fair value per share (in thousands) Nonvested at January 1, 2018 — $ — Granted (1) 367 14.99 Vested (1) (141 ) 15.18 Nonvested at December 31, 2018 226 $ 14.88 (1) On December 18, 2018, the Compensation Committee converted RSUs of certain officers to RSAs to mitigate potential adverse tax consequences to the Company and such employees. The vesting of a portion of these RSA grants was accelerated and shares withheld to satisfy withholding tax obligations. Such vested portion of the RSAs had a fair market value on the vesting date equal to the employment and income tax liability imposed on each officer in connection with such officer’s commitment to make an election under Section 83(b) of the Code with respect to the receipt of the RSAs. Such RSAs remain subject to the same terms and conditions of the underlying RSU Award from which they were converted and, with the exception of those RSAs vested and withheld for tax purposes, will be subject to forfeiture, as applicable, by each such officer in the event that the underlying RSU Awards would not have vested. The price of the Company's stock, immediately before the conversion of RSUs to RSAs as compared to the price on the date of such conversion, decreased; thus there was no increase to compensation expense related to the modification. The weighted-average grant date fair value of RSAs granted in 2018 and 2016 was $14.99 and $18.60 , respectively. No RSAs were granted in 2017. The aggregate fair value of RSAs that vested in 2018 , 2017 and 2016 was $1.3 million , $758 thousand and $37 thousand , respectively, based on share prices on the vesting dates. Employee Restricted Share Units – RSUs are rights to receive a specified number of ordinary shares upon vesting. RSUs granted to employees typically vest in one-third increments over a three -year service period or in some cases, cliff vest at the end of three years. Employee RSU activity for the year ended December 31, 2018 , follows: Number of Shares Weighted-average grant-date fair value per share (in thousands) Nonvested at January 1, 2018 2,436 $ 15.59 Granted 1,334 13.60 Vested (1,004 ) 15.44 Forfeited (193 ) 14.32 Cancelled (1) (367 ) 14.99 Nonvested at December 31, 2018 2,206 $ 14.67 (1) On December 18, 2018, the Compensation Committee converted RSUs of certain officers to RSAs to mitigate potential adverse tax consequences to the Company and such employees. The vesting of a portion of these RSA grants was accelerated and shares witheld to satisfy withholding tax obligations. Such vested portion of the RSAs had a fair market value on the vesting date equal to the employment and income tax liability imposed on each officer in connection with such officer’s commitment to make an election under Section 83(b) of the Code with respect to the receipt of the RSAs. Such RSAs remain subject to the same terms and conditions of the underlying RSU Award from which they were converted and, with the exception of those RSAs vested and withheld for tax purposes, will be subject to forfeiture, as applicable, by each such officer in the event that the underlying RSU Awards would not have vested. The price of the Company's stock, immediately before the conversion of RSUs to RSAs as compared to the price on the date of such conversion, decreased; thus there was no increase to compensation expense related to the modification. The weighted-average grant date fair value of employee RSUs granted in 2018 , 2017 and 2016 was $13.60 , $17.09 and $11.62 , respectively. The aggregate fair value of employee RSUs that vested in 2018 , 2017 and 2016 was $13.7 million , $17.8 million and $14.6 million , respectively. Non-employee Director Deferred Restricted Share Units and Non-employee Director Non-Deferred Restricted Share Units – Non-employee directors may annually elect to receive either Directors RSUs or Directors ND RSUs. Both Directors RSUs and Directors ND RSUs vest at the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant date. Directors ND RSUs are settled on the vesting date, while Director RSUs are not settled until the director terminates service from the Board. Both Directors ND RSUs and Directors RSUs are settled in cash, shares or a combination thereof at the discretion of the Company Compensation Committee. Activity related to Directors RSUs for the year ended December 31, 2018 , follows: Number of shares Weighted-average grant-date fair value per share (in thousands) Outstanding at January 1, 2018 203 $ 25.62 Granted 26 15.29 Settled — — Outstanding at December 31, 2018 229 $ 24.44 Vested at December 31, 2018 203 $ 25.62 The weighted-average grant date fair value of non-employee Directors RSUs granted in 2018 , 2017 and 2016 was $15.29 , $13.24 and $17.43 , respectively. The number and aggregate settlement-date fair value of Directors RSUs settled during the year were as follows: 2018 – none ; 2017 – 114 thousand Directors RSUs at $1.5 million ; 2016 – 54 thousand Directors RSUs at $1.0 million . Activity related to Directors ND RSUs for the year ended December 31, 2018 , follows: Number of shares Weighted-average grant-date fair value per share (in thousands) Outstanding at January 1, 2018 91 $ 13.24 Granted 78 15.29 Settled (91 ) 13.24 Outstanding at December 31, 2018 78 $ 15.29 Vested at December 31, 2018 — $ — The weighted-average grant date fair value of non-employee Directors ND RSUs granted in 2018 and 2017 was $15.29 and $13.24 , respectively. The aggregate settlement-date fair value of Directors ND RSUs settled during the year were as follows: 2018 - 91 thousand Directors ND RSUs at $1.4 million . Directors RSUs and Directors ND RSUs are accounted for under the liability method. Accordingly, other long-term liabilities at December 31, 2018 and 2017 , included $2.3 million and $3.8 million , respectively, related to such awards. Performance-based Awards – During 2016 , 2017 and 2018 , the Company granted to certain members of management P-Units that have a target value of $100 per unit. The amount ultimately earned for P-Units granted in 2018 is determined by the Company’s absolute TSR performance and relative TSR performance as measured against a group of companies selected by the Company Compensation Committee, over a three -year period ending December 31, 2020. The amount earned could range from zero to $200 per unit depending on the Company's performance. Twenty-five percent of the P-Units’ value is determined by the Company’s absolute TSR performance and relative TSR ranking for each one -year period ended December 31, 2018, 2019, and 2020 and 25% of the P-Units’ value is determined by the Company's absolute TSR performance and relative TSR ranking for the three -year period ended December 31, 2020. The amount ultimately earned for the 2017 and 2016 P-Units is determined by the Company's relative TSR relative to a select group of peer companies, as selected by the Company Compensation Committee, over a three -year period ending December 31, 2019 and 2018 for the 2017 and 2016 grants, respectively. The amount earned could range from zero to $200 per unit depending on the Company's performance. Twenty-five percent of the P-Units’ value is determined by the Company’s relative TSR ranking for each one -year period ended December 31 and 25% of the P-Units’ value is determined by the Company's relative TSR ranking for the three -year period ended December 31. P-Units cliff vest and payment is made, if any, on the third anniversary following the grant date. Any employee who terminates employment with the Company prior to the third anniversary for any reason other than retirement will not receive any payment with respect to P-Units unless approved by the Company Compensation Committee. Settlement of the P-Units granted may be in cash, shares or a combination thereof, at the Company Compensation Committee's discretion. The grant date fair value of P-Units granted in 2018 , 2017 and 2016 was estimated to be $7.0 million , $9.5 million and $8.6 million , respectively. Fair value for P-units are estimated using the Monte Carlo simulation model, which considers the probabilities of the Company’s relative TSR performance and TSR ranking at the end of each performance period, and the amount of the payout at each rank to determine the probability-weighted expected payout. The Company uses liability accounting to account for the P-Units. Compensation is generally recognized on a straight-line basis over a maximum period of three years from the grant date and is adjusted for changes in fair value through the end of the performance period. The Company recognizes compensation cost on the accelerated method for those retirement eligible or who will become retirement eligible during the vesting period as the awards provide for pro-rata vesting rather than full vesting if a retirement eligible employee retires prior to the end of the 36 months service period. Liabilities for estimated P-Unit obligations at December 31, 2018 for 2018 grants and prior, included $9.1 million and $7.0 million classified as current and noncurrent, respectively, compared to $11.5 million and $10.5 million , respectively, at December 31, 2017 . Current and noncurrent estimated P-Unit liabilities are included in Accrued liabilities, and Other liabilities, respectively, in the Consolidated Balance Sheets. In 2018 , 2017 and 2016 , the Company paid $11.9 million , $11.4 million and $7.9 million , respectively, in cash to settle P-Units that vested during the year. Share Appreciation Rights – SARs give the holder the right to receive ordinary shares at no cost to the employee, or cash at the discretion of the Committee, equal in value to the excess of the market price of a share on the date of exercise over the exercise price. All SARs granted have exercise prices equal to the market price of the underlying shares on the date of grant. SARs become exercisable in one-third annual increments over a three -year service period and expire ten years following the grant date. The Company intends to share-settle any exercises of SARs and has therefore accounted for SARs as equity awards. No SARs have been granted since 2013. SARs activity for the year ended December 31, 2018 , is summarized below: Number of shares under SARs Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) (in millions) Outstanding at January 1, 2018 1,029 $ 31.03 Forfeited or expired (17 ) 36.86 Outstanding at December 31, 2018 1,012 $ 30.93 2.0 $ — Exercisable at December 31, 2018 1,012 $ 30.93 2.0 $ — No SARs were exercised in 2018, 2017 and 2016. Share Options – Share options granted to employees in 2017 become exercisable and cliff vest at the end of a four -year vesting period at a price generally equal to the market price of the Company’s common shares on the date of grant. The remaining share options became exercisable over a three - year service period at a price generally equal to the market price of the Company’s common shares on the date of grant. Unexercised options expire seven years after the grant date. Fair values of Share options granted were determined using the Black-Scholes option pricing model with the following weighted-average assumptions: February 22, 2017 Expected life in years 5.5 Risk-free interest rate 1.987 % Expected volatility 40.551 % Weighted average grant date per share fair value $ 7.04 Share option activity for the year ended December 31, 2018 , is summarized below: Number of shares under option Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) (in thousands) Outstanding at January 1, 2018 455 $ 17.08 Exercised (5 ) 15.31 $ 19.2 Expired (95 ) 15.31 Outstanding at December 31, 2018 355 $ 17.59 5.1 — Exercisable at December 31, 2018 — $ — 0.0 $ — 5 thousand options were exercised in 2018 . No options were exercised in 2017 or 2016 . |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The Company provides defined-benefit pension, health care and life insurance benefits upon retirement for certain full-time employees. Pension benefits are provided under The Rowan Pension Plan, and The Rowan SERP, and health care and life insurance benefits are provided under the Retiree Medical Plan. The following table presents the changes in benefit obligations and plan assets for the years ended December 31 and the funded status and weighted-average assumptions used to determine the benefit obligation at each year end (dollars in millions): 2018 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Projected benefit obligations: Balance, January 1 $ 835.8 $ 18.0 $ 853.8 $ 772.1 $ 29.9 $ 802.0 Interest cost 27.9 0.5 28.4 25.5 0.9 26.4 Service cost 6.1 0.1 6.2 12.3 0.1 12.4 Actuarial (gain) loss (51.4 ) (1.2 ) (52.6 ) 78.0 5.5 83.5 Plan amendments (0.5 ) — (0.5 ) — — — Plan settlements — — — — (16.4 ) (16.4 ) Plan curtailments (1.1 ) — (1.1 ) — — — Exchange rate changes (0.4 ) — (0.4 ) 0.3 — 0.3 Benefits paid (57.7 ) (1.4 ) (59.1 ) (52.4 ) (2.0 ) (54.4 ) Balance, December 31 758.7 16.0 774.7 835.8 18.0 853.8 Plan assets: Fair value, January 1 609.7 — 609.7 544.6 — 544.6 Actual return (40.5 ) — (40.5 ) 88.0 — 88.0 Employer contributions 24.2 — 24.2 29.3 — 29.3 Plan settlements — — — — — — Exchange rate changes (0.2 ) — (0.2 ) 0.2 — 0.2 Benefits paid (57.7 ) — (57.7 ) (52.4 ) — (52.4 ) Fair value, December 31 535.5 — 535.5 609.7 — 609.7 Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (15.1 ) $ (1.7 ) $ (16.8 ) $ (24.5 ) $ (2.5 ) $ (27.0 ) Other liabilities (long-term) (208.1 ) (14.3 ) (222.4 ) (201.6 ) (15.5 ) (217.1 ) Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Accumulated contributions in excess of (less than) net periodic benefit cost $ 141.7 $ (25.8 ) $ 115.9 $ 120.2 $ (39.1 ) $ 81.1 Amounts not yet reflected in net periodic benefit cost: Actuarial (loss) gain (364.2 ) (4.3 ) (368.5 ) (358.1 ) (6.3 ) (364.4 ) Prior service credit (0.7 ) 14.1 13.4 11.8 27.4 39.2 Total accumulated other comprehensive income (loss) (364.9 ) 9.8 (355.1 ) (346.3 ) 21.1 (325.2 ) Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Weighted-average assumptions: Discount rate 4.35 % 4.23 % 3.68 % 3.52 % Rate of compensation increase 3.78 % 4.28 % The projected benefit obligations for pension benefits in the preceding table reflect the actuarial present value of benefits accrued based on services rendered to date and include the estimated effect of future salary increases. The accumulated benefit obligations, which are presented below for all plans in the aggregate at December 31, are based on services rendered to date, but exclude the effect of future salary increases (in millions): 2018 2017 Accumulated benefit obligation $ 754.7 $ 830.8 Over the past 10 years, there have been various changes to our pension plan which have significantly reduced participant benefits under such plan. Further, on May 11, 2018, the Company communicated changes to the participants in its pension plan, that will "freeze" this plan going forward. Based on these changes, effective as of June 30, 2018, eligible participants will no longer receive pay credits and newly hired employees will not be eligible to participate in the pension plan. For the purposes of remeasurement, the Company used the date of April 30, 2018 as it was the month-end date that is closest to May 11, 2018. The impacts of these changes to the plan as of May 11, 2018, are presented in the table below (in millions): Liability increase (decrease) Accumulated other comprehensive income (loss) Deferred tax asset decrease (increase) Income included in Other- net Income tax expense (increase) decrease Plan change to projected benefit obligation $ (1.6 ) $ 1.3 $ 0.3 $ — $ — Remeasurement gain (29.9 ) 23.6 6.3 — — Curtailment — (9.0 ) (1.0 ) 11.4 (1.4 ) Total $ (31.5 ) $ 15.9 $ 5.6 $ 11.4 $ (1.4 ) The Company records unrealized gains and losses related to net periodic pension and other postretirement benefit cost net of estimated taxes in Accumulated other comprehensive income (loss). On November 27, 2017, the Company purchased annuities to cover post-65 retiree medical benefits for current retirees as of the purchase date. The annuity purchase settled post-65 medical benefits (i.e., Health Reimbursement Account, or “HRA”, amounts) for affected participants, with the insurer taking responsibility for all benefit payments on and after January 1, 2019. The Company retained the obligation for 2018 benefit payments. The Company determined that this annuity purchase resulted in a full settlement of the post-65 medical obligation and as a result the entirety of the annuity purchase was treated as a settlement and resulted in a settlement loss of $5.8 million , calculated as of December 31, 2017. On August 10, 2016, the Company communicated changes to the participants in its postretirement benefits plan, which was previously frozen to new entrants in 2008. Based on these changes, effective as of January 1, 2017, eligible participants now receive a health reimbursement account that provides a fixed dollar benefit per year. The impact of these changes to the plan and related, as of August 10, 2016, are presented in the table below (in millions): Liability increase (decrease) Accumulated other comprehensive income (loss) Deferred tax liability increase (decrease) Plan change benefit $ (39.9 ) $ 25.9 $ 14.0 Remeasurement loss 5.2 (3.4 ) (1.8 ) Actuarial loss 5.2 (3.3 ) (1.9 ) Total $ (29.5 ) $ 19.2 $ 10.3 During 2016, the Rowan SERP had a one-time settlement charge recognized in net periodic pension costs under US GAAP of $0.5 million as of December 31, 2016, attributable to lump sum payments during 2016 which exceeded the sum of the service cost and interest cost, the threshold that requires recognition of a settlement loss. In 2016, the Norwegian Onshore and Offshore pension plans both experienced plan curtailments. Across Rowan Norway Limited, which employs participants of both the Onshore and Offshore pension plans, there was an employment reduction resulting in an approximate 50% reduction in active participants of the plans in early 2017. Since Rowan provided affected employees redundancy letters in November 2016, the curtailment was recognized effective December 31, 2016. The Company recognized a $0.4 million curtailment gain in net periodic pension costs for 2016. During 2015, the Company amended the eligibility requirement with respect to the Retiree Medical Plan to exclude any participant that was previously eligible and was under the age of 50 as of January 1, 2016. The effect of the change was to reduce the projected benefit obligation by $7.2 million , which was net of an estimated $4.4 million payment to be made in early 2016 to the affected participants. The actual payment made in 2016 was $2.6 million and the Company recognized a related $0.1 million settlement loss. Effective January 1, 2016, the Company changed its estimate of the service and interest cost components of net periodic benefit costs for its significant defined benefit pension and other postretirement benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. While the benefit obligation measured under this approach is unchanged, more granular application of the spot rates reduced the service and interest cost for fiscal 2016. Each of the Company’s pension plans has a benefit obligation that exceeds the fair value of plan assets. The Company estimates the following amounts, which are classified in accumulated other comprehensive loss, a component of shareholders’ equity, will be recognized as net periodic benefit cost in 2019 (in millions): Pension benefits Other retirement benefits Total Actuarial (loss) gain $ (9.0 ) $ (0.6 ) $ (9.6 ) Prior service credit — 12.4 12.4 Total amortization $ (9.0 ) $ 11.8 $ 2.8 Cumulative gains and losses in excess of 10% of the greater of projected benefit obligation or market-related value of plan assets are amortized over the expected average remaining service of the current active membership. If all members of a plan are inactive, the amortization is based on their average remaining life expectancy instead of expected average remaining service. Each unrecognized prior service cost base is amortized on a straight line basis over the average remaining service period of participants expected to receive a benefit and who are active at the date of the plan amendment. If all or almost all of the plan’s participants offered a benefit by the plan amendment are inactive, the amortization is based on their average remaining life expectancy instead of average remaining service. The components of net periodic pension cost and the weighted-average assumptions used to determine net cost were as follows (dollars in millions): 2018 2017 2016 Service cost (1) $ 6.1 $ 12.3 $ 16.3 Interest cost (2) 27.9 25.5 26.3 Expected return on plan assets (2) (36.5 ) (37.7 ) (39.6 ) Recognized actuarial loss (2) 18.5 23.3 21.0 Amortization of prior service credit (2) (1.7 ) (5.1 ) (5.0 ) Curtailment gain recognized (2) (11.4 ) — (0.4 ) Settlement loss recognized (2) — — 0.5 Net periodic pension cost $ 2.9 $ 18.3 $ 19.1 Discount rate 3.69 % 4.29 % 4.53 % Expected return on plan assets 6.68 % 7.13 % 7.28 % Rate of compensation increase 4.28 % 4.14 % 4.14 % (1) Included in Direct operating costs and Selling, general and administrative on the Consolidated Statements of Operations (2) Included in Other - net on the Consolidated Statements of Operations The components of net periodic cost of other postretirement benefits and the weighted average discount rate used to determine net cost were as follows (dollars in millions): 2018 2017 2016 Service cost (1) $ 0.1 $ 0.1 $ 0.3 Interest cost (2) 0.5 0.9 1.6 Amortization of prior service credit (2) (13.3 ) (13.3 ) (6.4 ) Amortization of net (gain) loss (2) 0.8 0.7 0.3 Settlement loss (2) — 5.8 0.1 Net periodic cost of other postretirement benefits $ (11.9 ) $ (5.8 ) $ (4.1 ) Discount rate 3.50 % 3.91 % 4.18 % (1) Included in Direct operating costs and Selling, general and administrative on the Consolidated Statements of Operations (2) Included in Other - net on the Consolidated Statements of Operations The pension plans’ investment objectives for fund assets are: to achieve over the life of the plans a return equal to the plans’ expected investment return or the inflation rate plus 3% , whichever is greater; to invest assets in a manner such that contributions are minimized and future assets are available to fund liabilities; to maintain liquidity sufficient to pay benefits when due; and to diversify among asset classes so that assets earn a reasonable return with an acceptable level of risk. The plans employ several active managers with proven long-term records in their specific investment discipline. Target allocations among asset categories and the fair values of each category of plan assets as of December 31, 2018 and 2017 , classified by level within the US GAAP fair value hierarchy are presented below. The plans will periodically reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in millions): Target range Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2018: Equities: 53% to 69% U.S. large cap 22% to 28% $ 131.6 $ — $ 131.6 $ — U.S. small cap 4% to 10% 35.6 — 35.6 — International all cap 21% to 29% 129.9 — 129.9 — International small cap 2% to 8% 28.8 — 28.8 — Real estate equities 0% to 13% 51.7 — 51.7 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 4.1 — 4.1 — Aggregate 9% to 19% 73.9 — 73.9 — Core plus 9% to 19% 74.7 74.7 — — Group annuity contracts 5.2 — 5.2 — Total $ 535.5 $ 74.7 $ 460.8 $ — December 31, 2017: Equities: 53% to 69% U.S. large cap 22% to 28% $ 158.2 $ — $ 158.2 $ — U.S. small cap 4% to 10% 45.3 — 45.3 — International all cap 21% to 29% 156.2 — 156.2 — International small cap 2% to 8% 36.3 — 36.3 — Real estate equities 0% to 13% 50.6 — 50.6 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 6.2 — 6.2 — Aggregate 9% to 19% 74.9 — 74.9 — Core plus 9% to 19% 78.1 78.1 — — Group annuity contracts 3.9 — 3.9 — Total $ 609.7 $ 78.1 $ 531.6 $ — Assets in the U.S. equities category include investments in common and preferred stocks (and equivalents such as American Depository Receipts and convertible bonds) and may be held through separate accounts, commingled funds or an institutional mutual fund. Assets in the international equities category include investments in a broad range of international equity securities, including both developed and emerging markets, and may be held through a commingled or institutional mutual fund. The real estate category includes investments in pooled and commingled funds whose objectives are diversified equity investments in income-producing properties. Each real estate fund is intended to provide broad exposure to the real estate market by property type, geographic location and size and may invest internationally. Securities in both the aggregate and core plus fixed income categories include U.S. government, corporate, mortgage- and asset-backed securities and Yankee bonds, and both categories target an average credit rating of “A” or better at all times. Individual securities in the aggregate fixed income category must be investment grade or above at the time of purchase, whereas securities in the core plus category may have a rating of “B” or above. Additionally, the core plus category may invest in non-U.S. securities. Assets in the aggregate and core plus fixed income categories are held primarily through a commingled fund and an institutional mutual fund, respectively. Group annuity contracts are invested in a combination of equity, real estate, bond and other investments in connection with a pension plan in Norway. The following is a description of the valuation methodologies used for the pension plan assets at December 31, 2018 , and 2017 : • Fair values of all U.S. equity securities, the international all cap equity securities and aggregate fixed income securities categorized as Level 2 were held in commingled funds which were valued daily based on a net asset value. • Fair value of international small cap equity securities categorized as Level 2 were held in a limited partnership fund which was valued monthly based on a net asset value. • The real estate categorized as Level 2 was held in two accounts (a commingled fund and a limited partnership). The assets in the commingled fund were valued monthly based on a net asset value and the assets in the limited partnership were valued quarterly based on a net asset value. • Cash and equivalents categorized as Level 2 were valued at cost, which approximates fair value. • Fair value of mutual fund investments in core plus fixed income securities categorized as Level 1 were based on quoted market prices which represent the net asset value of shares held. To develop the expected long-term rate of return on assets assumption, the Company considered the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the plans’ other asset classes and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based upon the current asset allocation to develop the expected long-term rate of return on assets assumption for the plans, which was 6.70% at both December 31, 2018 and 2017 . The Company's estimates for its net benefit expense (income) are partially based on the expected return on pension plan assets. The Company uses a market-related value of plan assets to determine the expected return on pension plan assets. In determining the market-related value of plan assets, differences between expected and actual asset returns are deferred and recognized over two years. If the Company used the fair value of its plan assets instead of the market-related value of plan assets in determining the expected return on pension plan assets, its net benefit expense would have been $3.0 million lower for the year ended December 31, 2018 . The Company bases its determination of the asset return component of pension expense on a market-related valuation of assets, which reduces year-to-year volatility. This market-related valuation recognizes investment gains or losses over a two-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return based on the fair value of assets. Since the market-related value of assets recognizes gains or losses over a two-year period, the future value of assets will be impacted as previously deferred gains or losses are recorded. As of January 1, 2019, cumulative asset losses of approximately $36.6 million remained to be recognized in the calculation of the market-related value of assets. The Company currently expects to contribute approximately $15 million to its pension plans in 2019 and to directly pay other postretirement benefits of approximately $2 million . Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in millions): Pension benefits Other postretirement benefits Year ended December 31, 2019 $ 48.5 $ 1.7 2020 49.7 1.6 2021 50.5 1.4 2022 51.0 1.4 2023 51.3 1.3 2024 through 2028 256.4 5.9 The Company sponsors defined contribution plans covering substantially all employees. Employer contributions to such plans are expensed as incurred and totaled $12.1 million in 2018 , $12.5 million in 2017 and $16.7 million in 2016 . |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Reclassifications from Accumulated Other Comprehensive Loss The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income (loss) for the period (in millions): 2018 2017 2016 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (19.3 ) $ (29.8 ) $ (21.9 ) Amortization and curtailment recognition of prior service credit 26.4 18.4 10.7 Total before income taxes 7.1 (11.4 ) (11.2 ) Income tax (expense) benefit (1.5 ) — 3.8 Total reclassifications for the period, net of income taxes $ 5.6 $ (11.4 ) $ (7.4 ) The Company records unrealized gains and losses related to net periodic pension and other postretirement benefit cost net of estimated taxes in Accumulated other comprehensive income (loss). Cash Dividends Under English law, a public company may only declare dividends and make other distributions to shareholders (such as a share buyback) if the company has sufficient distributable reserves and meets certain net asset requirements. If the Company does not have sufficient distributable reserves or cannot meet the net asset requirements, the Company may be limited in its ability to timely pay dividends and effect other distributions to its shareholders. In January 2016, the Company announced that it had discontinued its quarterly dividend. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Rowan plc, the parent company, is domiciled in the U.K. and is subject to the U.K. statutory rate of 20% for the period January 1, 2016 through March 31, 2017 and 19% beginning April 1, 2017. On September 15, 2016, the U.K. enacted tax law to reduce the tax rate to 17% beginning April 1, 2020. The U.K. statutory tax rate for 2018 is 19.00% . On December 22, 2017, the U.S. government enacted tax legislation commonly referred to as the U.S. Tax Act. The U.S. Tax Act significantly changes U.S. corporate income tax laws including but not limited to reducing the U.S. corporate income tax rate from 35% to 21% as of January 1, 2018, implementing a tax determined by base erosion and anti-abuse tax, (also known as "BEAT"), from certain payments between a U.S. corporation and its foreign subsidiaries as of January 1, 2018, requiring a one-time transition tax on mandatory deemed repatriation of certain unremitted non-U.S. earnings as of December 31, 2017, and changing how non-U.S. subsidiaries are taxed in the U.S. as of January 1, 2017. Additionally, SEC Staff Accounting Bulletin No. 118 was issued to address the complex computations related to the U.S. Tax Act by allowing provisional estimates. During 2018, the Company finalized its analysis and calculations resulting in adjustments to its December 31, 2017 estimate related to transition tax from $34.1 million to $26.4 million and tax on non-U.S. subsidiaries from $38.3 million to $33.7 million resulting in a reduction to tax expense of $12.3 million . The Company has offset these charges with net operating losses. The December 31, 2017 estimate for remeasurement of U.S. deferred tax assets and liabilities for the income tax rate reduction was adjusted from $56.7 million to $61.6 million resulting in an increase to tax expense of $4.9 million . The significant components of income taxes attributable to continuing operations are presented below (in millions): 2018 2017 2016 Current: U.S. $ 2.9 $ (14.9 ) $ 10.0 Non - U.S. 13.6 16.8 32.9 State — — — Current expense (benefit) 16.5 1.9 42.9 Deferred: U.S. (69.8 ) (1.2 ) (20.9 ) Non - U.S. 1.7 25.9 (17.0 ) Deferred provision (benefit) (68.1 ) 24.7 (37.9 ) Total provision (benefit) $ (51.6 ) $ 26.6 $ 5.0 The reconciliation of differences between the Company's provision for income taxes and the amount determined by applying the U.K. statutory rate to income before income taxes are set forth below (dollars in millions): 2018 2017 2016 U.K. statutory rate 19.00 % 19.25 % 20.00 % Tax at statutory rate $ (75.8 ) $ 19.1 $ 65.1 Increase (decrease) due to: Foreign rate differential 9.6 (39.5 ) (92.7 ) Deferred intercompany gain/loss — — (20.1 ) Foreign asset basis difference 1.8 (38.1 ) 405.9 Luxembourg restructuring operating loss (2) (22.9 ) — (1,180.2 ) Change in valuation allowance 37.6 (29.4 ) 814.7 Prior period adjustments (2.9 ) 3.6 (4.1 ) Unrecognized tax benefits (4.7 ) (24.1 ) 7.1 U.S. tax on RCI non-U.S. subsidiaries 9.4 5.4 6.3 Enactment of tax reform (1) (7.4 ) 129.1 — Foreign tax credits/deductions — (0.8 ) (1.5 ) Other, net 3.7 1.3 4.5 Total provision (benefit) $ (51.6 ) $ 26.6 $ 5.0 (1) 2017 includes the U.S. tax rate reduction, one-time transition tax, and U.S. tax on applicable non-U.S. subsidiaries earnings. The impact of the 2017 items are fully offset in the change in valuation allowance above. 2018 includes the finalization of these impacts. (2) In 2016, organizational restructuring resulted in a Luxembourg net operating loss of $4,534 million resulting in a deferred tax asset of $1,180 million with an offsetting deferred tax liability for book over tax asset basis difference of $409 million and a valuation allowance of $747 million for the net deferred tax asset that is not expected to be realized. Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in millions): 2018 2017 Deferred tax assets: Accrued employee benefit plan costs $ 48.2 $ 46.2 U.S. net operating loss 40.6 39.3 U.K. net operating loss 6.0 2.4 Trinidad net operating loss 5.2 5.9 Luxembourg net operating loss 1,249.4 1,163.2 Suriname net operating loss 3.9 3.9 Other NOLs and tax credit carryforwards 38.0 38.1 Other 18.6 16.3 Total deferred tax assets 1,409.9 1,315.3 Less: valuation allowance (905.9 ) (869.9 ) Deferred tax assets, net of valuation allowance 504.0 445.4 Deferred tax liabilities: Property and equipment 396.2 412.8 Other 12.3 11.9 Total deferred tax liabilities 408.5 424.7 Net deferred tax asset (liability) $ 95.5 $ 20.7 Management continues to assess available positive and negative evidence to evaluate the existing deferred tax assets’ ability to be realized including determining if there is sufficient future taxable income. The Company records the portion of the deferred tax assets that is more likely to be realized. There have been no changes on the prior assessment regarding the ability to realize the Luxembourg deferred tax assets and the Company has assessed the need for a valuation allowance as of December 31, 2018 . The Company increased the valuation allowance on the Luxembourg deferred tax assets by $101.4 million to $867.9 million , at December 31, 2018, primarily due to an adjustment related to a filed amended tax return and current year net operating losses. In assessing the future ability to realize the existing U.S. deferred tax assets, the evaluation indicates positive evidence that a portion of the deferred tax assets will be realized. In 2018, the U.S. valuation allowance on U.S. deferred tax assets was decreased by $68.4 million to $22.0 million , related to deferred tax assets that are now expected to be realized. As of December 31, 2017 , the Company increased the valuation allowance on the Luxembourg deferred tax assets by $19.8 million to $766.5 million , primarily due to lower 2017 earnings than expected. In 2017, the U.S. valuation allowance on U.S. deferred tax assets was decreased by $41.7 million to $90.4 million primarily due to a decrease of provisional estimate of $56.7 million for the remeasurement to the lower U.S. corporate income tax rate, a decrease of provisional estimate of $52.1 million for 2017 activity, and an increase of $60.3 million for a deferred intra-entity asset transfer. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if negative evidence in the form of cumulative losses is no longer present, and additional weight may be given to evidence such as projections for growth. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view regarding future realization of deferred tax assets. At December 31, 2018 , the Company had approximately $366 million of NOLs in the U.S. expiring at various times between 2035 through 2037, of which $76 million are subject to a valuation allowance; $4,803 million of non-expiring NOLs in Luxembourg of which $3,337 million is subject to a valuation allowance; $36 million of non-expiring NOLs in the U.K., of which $36 million is subject to a valuation allowance; and $21 million of non-expiring NOLs in Trinidad, of which $21 million is subject to a valuation allowance. In addition, at December 31, 2018 , the Company had $15 million of non-expiring NOLs in other foreign jurisdictions, of which $15 million is subject to a valuation allowance. A U.S. foreign tax credit of $29 million is intended to be carried back and does not have a valuation allowance. Due to the uncertainty of realization, the Company has a tax-effected valuation allowance as of December 31, 2018 , in the amount of $906 million against the deferred tax assets for foreign tax credits, NOL carryforwards, and other deferred tax assets that may not be realizable, primarily relating to countries where the Company no longer operates or does not expect to generate sufficient future taxable income. Management has determined that no other valuation allowances were necessary at December 31, 2018 , as anticipated future tax benefits relating to all recognized deferred income tax assets are expected to be fully realized when measured against a more-likely-than-not standard. The NOL carryforwards included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits. The Company has not provided deferred income taxes on certain undistributed earnings of non-U.K. subsidiaries. If facts and circumstances cause a change in expectations regarding future tax consequences, the resulting tax impact could have a material effect on the Company's consolidated financial statements. At December 31, 2018 , 2017 and 2016 , the net unrecognized tax benefits attributable to continuing operations was approximately $35 million , $41 million and $59 million , respectively. At December 31, 2018 , $35 million would reduce the Company’s income tax provision if recognized. The following table sets forth the changes in the Company’s gross unrecognized tax benefits for the years ended December 31 (in millions): 2018 2017 2016 Gross unrecognized tax benefits - beginning of year $ 102.0 $ 120.1 $ 65.1 Gross increases - tax positions in prior period 1.1 1.4 46.2 Gross decreases - tax positions in prior period (0.3 ) (5.6 ) (0.6 ) Gross increases - current period tax positions 3.2 3.1 10.9 Settlements — (0.8 ) (1.5 ) Lapse of statutes of limitation (7.8 ) (16.2 ) — Gross unrecognized tax benefit - end of year $ 98.2 $ 102.0 $ 120.1 The interest and penalty benefits and expenses relating to income taxes are included in income tax expense. At December 31, 2018 , 2017 and 2016 , net accrued interest was $1.7 million , $1.4 million and $11.8 million , respectively, and net accrued penalties were $(0.5) million , $2.2 million and $3.1 million , respectively. Accrued interest and penalties relating to uncertain tax positions that are not actually assessed will be reversed in the year of the resolution. The Company has been advised by the IRS of proposed unfavorable tax adjustments of $85 million including applicable penalties for the open tax years 2009 through 2012. The unfavorable tax adjustments primarily related to the following items: 2009 tax benefits recognized as a result of applying the facts of a third-party tax case that provided favorable tax treatment for certain non-U.S. contracts entered into in prior years to the Company’s situation; transfer pricing; and domestic production activity deduction. The Company has protested the proposed adjustment. However, the IRS does not agree with the Company's protest and they have submitted the proposed unfavorable tax adjustments to be reviewed by the IRS appeals group. In years subsequent to 2012, the Company has similar positions that could be subject to adjustments for the open years. The Company has provided for amounts that it believes will be ultimately payable under the proposed adjustments and intends to vigorously defend its positions; however, if the Company determines the provisions for these matters to be inadequate due to new information or the Company is required to pay a significant amount of additional U.S. taxes and applicable penalties and interest in excess of amounts that have been provided for these matters, the Company's consolidated results of operations and cash flows could be materially and adversely affected. The Company’s U.S. federal tax returns for 2009 through 2012 are currently under audit by the IRS. The U.S. tax years open for examination are for periods 2015 and subsequent years. Various state tax returns for 2009 and subsequent years remain open for examination. In the Company’s non-U.S. tax jurisdictions, returns for 2006 and subsequent years remain open for examination. The Company is undergoing other routine tax examinations in various U.S. and non-U.S. taxing jurisdictions in which the Company has operated. These examinations cover various tax years and are in various stages of finalization. The Company believes that any income taxes ultimately assessed by any taxing authorities will not materially exceed amounts for which the Company has already provided, however, if it is determined that the provisions for these matters are inadequate due to new information or that taxing authorities assess a significant amount of additional taxes and applicable penalties and interest in excess of amounts that have been provided for these matters, consolidated results of operations and cash flows could be materially and adversely affected. The components of income (loss) from continuing operations before income taxes were as follows (in millions): 2018 2017 2016 U.S. $ (10.3 ) $ (63.7 ) $ (180.2 ) Non-U.S. (388.7 ) 163.0 505.8 Total $ (399.0 ) $ 99.3 $ 325.6 |
SEGMENT AND GEOGRAPHIC AREA INF
SEGMENT AND GEOGRAPHIC AREA INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC AREA INFORMATION | SEGMENT, DISAGGREGATION OF REVENUE AND GEOGRAPHIC AREA INFORMATION Prior to ARO commencing operations on October 17, 2017 (see Note 1 and Note 4 ), the Company operated in two segments: Deepwater and Jack-ups. The Company now operates in three principal operating segments: Deepwater, which consists of its drillship operations, Jack-ups, which is composed of the Company's jack-up operations and results associated with the Company's arrangements with ARO primarily under the Transition Services Agreement (direct operating costs only), Rig Management Agreement, Rig Lease Agreements and Secondment Agreement (see Note 1 and Note 4 ), and ARO, the Company's 50 / 50 joint venture with Saudi Aramco. ARO was formed to own, manage and operate offshore drilling units in Saudi Arabia. These segments provide one primary service – contract drilling. The Company evaluates performance primarily based on income from operations. "Gain on sale of assets to unconsolidated subsidiary" is related to the sale of two jack-ups in 2018 and three jack-ups and related assets in 2017 to ARO and is included in the Jack-ups segment (see Note 1 and Note 15 ). Depreciation and amortization and Selling, general and administrative expenses related to the Company's corporate function and other administrative offices have not been allocated to its operating segments for purposes of measuring segment operating income and are included in "Unallocated and other." In addition, revenue and general and administrative costs related to providing transition services to ARO are included in "Unallocated and other" (see Note 4 ). "Other operating items" consists of, to the extent applicable, non-cash impairment charges, losses on disposals of property and equipment and a litigation related item. Segment results are presented below: Years ended December 31, Deepwater Jack-ups ARO Unallocated and other Reportable segments total Eliminations and adjustments Consolidated (In millions) 2018 Revenue $ 158.1 $ 632.9 $ 348.8 $ 33.8 $ 1,173.6 $ (348.8 ) $ 824.8 Operating expenses: Direct operating costs (excluding items below) 168.6 514.1 194.0 — 876.7 (194.0 ) 682.7 Depreciation and amortization 108.5 278.3 67.4 2.1 456.3 (67.4 ) 388.9 Selling, general and administrative — — 27.0 96.1 123.1 (27.0 ) 96.1 Gain on sale of assets to unconsolidated subsidiary — (65.8 ) — — (65.8 ) — (65.8 ) Other operating items - expense 1.6 5.3 1.4 5.2 13.5 (1.4 ) 12.1 Merger and related costs — — — 8.9 8.9 — 8.9 Equity in earnings of unconsolidated subsidiary — — — — — 10.3 10.3 Income (loss) from operations $ (120.6 ) $ (99.0 ) $ 59.0 $ (78.5 ) $ (239.1 ) $ (48.7 ) $ (287.8 ) 2017 Revenue $ 467.9 $ 807.5 $ 48.6 $ 7.4 $ 1,331.4 $ (48.6 ) $ 1,282.8 Operating expenses: Direct operating costs (excluding items below) 151.4 533.6 22.2 — 707.2 (22.2 ) 685.0 Depreciation and amortization 111.6 289.4 12.9 2.7 416.6 (12.9 ) 403.7 Selling, general and administrative — — 6.1 104.6 110.7 (6.1 ) 104.6 Gain on sale of assets to unconsolidated subsidiary — (157.4 ) — — (157.4 ) — (157.4 ) Other operating items - (income) expense 0.1 9.3 (0.1 ) — 9.3 0.1 9.4 Equity in earnings of unconsolidated subsidiary — — — — — 0.9 0.9 Income (loss) from operations $ 204.8 $ 132.6 $ 7.5 $ (99.9 ) $ 245.0 $ (6.6 ) $ 238.4 2016 Revenue $ 827.5 $ 1,015.7 $ — $ — $ 1,843.2 $ — $ 1,843.2 Operating expenses: Direct operating costs (excluding items below) 222.4 557.3 — — 779.7 — 779.7 Depreciation and amortization 115.0 282.6 — 5.3 402.9 — 402.9 Selling, general and administrative — — — 102.2 102.2 — 102.2 Other operating items - expense 0.1 40.9 — 0.6 41.6 — 41.6 Income (loss) from operations $ 490.0 $ 134.9 $ — $ (108.1 ) $ 516.8 $ — $ 516.8 Years ended December 31, 2018 2017 2016 Capital expenditures: (In millions) Deepwater $ 16.7 $ 8.3 $ 31.5 Jack-ups 145.8 86.4 84.3 Unallocated and other 6.7 5.9 1.8 Total $ 169.2 $ 100.6 $ 117.6 In January 2018, the Company completed the cash purchase of two rigs, for which a deposit was made in 2017 (See Note 17 ). Assets Not all assets are associated with specific segments. Those assets specific to segments include receivables, certain identified property, plant and equipment (including rigs), investment in unconsolidated subsidiary and note receivable from unconsolidated subsidiary. The remaining assets, such as cash and equivalents, are considered to be shared among the segments and therefore reported in Unallocated and other. December 31, 2018 2017 Total assets: (In millions) Deepwater $ 2,757.9 $ 2,857.6 Jack-ups 4,153.8 4,173.7 Unallocated and other 1,206.0 1,427.0 Total $ 8,117.7 $ 8,458.3 Disaggregation of Revenue and Geographical Information The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next. Years ended December 31, 2018 2017 2016 Deepwater Revenue: United States $ 157.0 $ 465.5 $ 823.7 Other (1) 1.1 2.4 3.8 Total $ 158.1 $ 467.9 $ 827.5 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. Years ended December 31, 2018 2017 2016 Jack-ups Revenue: Saudi Arabia $ 319.9 $ 383.2 $ 363.9 Trinidad 115.4 127.0 130.4 Norway 86.5 193.8 312.6 United Kingdom 74.0 58.2 120.6 United States 31.0 45.2 29.1 Other (1) 6.1 0.1 59.1 Total $ 632.9 $ 807.5 $ 1,015.7 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. Years ended December 31, 2018 2017 2016 Unallocated and Other Revenue: Saudi Arabia $ 33.8 $ 7.4 $ — Total $ 33.8 $ 7.4 $ — Revenue from Unallocated and other consists of transition services for ARO. Fees for these related services are recognized as the service is performed and such fees are billed on a monthly basis. The classifications of long-lived assets among geographic areas in the table which follows (in millions) were determined based on the physical location of assets at the end of the periods presented below: December 31, 2018 2017 (In millions) Long-lived assets: United States $ 3,141.3 $ 3,065.6 Norway 810.8 862.8 Saudi Arabia 717.8 633.9 Trinidad 667.0 599.5 United Kingdom 328.3 1,067.2 Other (1) 577.0 354.6 Total $ 6,242.2 $ 6,583.6 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. |
GAIN ON SALE OF ASSETS TO UNCON
GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY [Abstract] | |
Gain on sale of assets to unconsolidated subsidiary | GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY Effective October 1, 2018, the Company sold the Scooter Yeargain and the Hank Boswell to ARO for total cash consideration of $266.0 million . The book value of these assets was approximately $200.2 million . As a result of this sale transaction with ARO, the Company recognized a gain on the disposal of rigs in the amount of $65.8 million in 2018. On October 17, 2017, pursuant to an Asset Transfer and Contribution Agreement, as amended, with ARO, the Company agreed to sell three rigs to ARO: the JP Bussell, the Bob Keller and the Gilbert Rowe and related assets for a total cash consideration of $357.7 million . The book value of these assets was approximately $200.3 million . As a result of this sale transaction with ARO, the Company recognized a gain on the disposal of rig assets in the amount of $157.4 million in 2017. See Note 1 and Note 4 for more details of the ARO joint venture. |
MATERIAL CHARGES AND OTHER OPER
MATERIAL CHARGES AND OTHER OPERATING ITEMS | 12 Months Ended |
Dec. 31, 2018 | |
Material Charges and Other Operating Items [Abstract] | |
MATERIAL CHARGES AND OTHER OPERATING ITEMS | MATERIAL CHARGES AND OTHER OPERATING ITEMS Operating expenses for 2016 include (i) non-cash asset impairment charges totaling $34.3 million on five jack-up drilling units (see Note 8 ) and (ii) a $1.4 million reversal of an estimated liability for settlement of a withholding tax matter during a tax amnesty period which was related to a legal settlement for a 2014 termination of a contract for refurbishment work on the Rowan Gorilla III , as noted below in the 2015 period. Payment of such withholding taxes during the tax amnesty period resulted in the waiver of applicable penalties and interest. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Non-cash investing and financing activities and other supplemental cash flow information follows (in millions): 2018 2017 2016 Accrued but unpaid additions to property and equipment at December 31 $ 42.2 $ 21.4 $ 21.0 Cash interest payments 153.9 150.2 159.2 Income tax payments (refunds), net 33.1 30.0 38.1 On January 5, 2018, the Company purchased two 2013 Le Tourneau Super 116E jack-up rigs, the Bess Brants and Earnest Dees, formerly, P-59 and P-60, respectively, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”). The purchase price was $38.5 million per unit, or an aggregate $77.0 million , of which $7.7 million was paid as a deposit in December 2017. The remaining balance of $69.3 million as well as $1.5 million in transaction costs were paid in January 2018. |
GUARANTEES OF REGISTERED SECURI
GUARANTEES OF REGISTERED SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTEES OF REGISTERED SECURITIES | GUARANTEES OF REGISTERED SECURITIES Rowan plc and its 100% -owned subsidiary, RCI, have entered into agreements providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan plc of the prompt payment, when due, of any amount owed to the holders of RCI's Senior Notes. The condensed consolidating financial information that follows is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan plc’s guarantee of the Senior Notes and reflects the corporate ownership structure as of December 31, 2018 . Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 4.9 $ 824.8 $ (4.9 ) $ 824.8 COSTS AND EXPENSES: Direct operating costs (excluding items below) — — 682.7 — 682.7 Depreciation and amortization — — 388.9 — 388.9 Selling, general and administrative 25.7 0.6 74.7 (4.9 ) 96.1 Gain on sale of assets to unconsolidated subsidiary — — (65.8 ) — (65.8 ) Loss on disposals of property and equipment — 3.7 8.4 — 12.1 Merger and related costs 8.9 — — — 8.9 Total costs and expenses 34.6 4.3 1,088.9 (4.9 ) 1,122.9 Equity in earnings of unconsolidated subsidiary — — 10.3 — 10.3 INCOME (LOSS) FROM OPERATIONS (34.6 ) 0.6 (253.8 ) — (287.8 ) OTHER INCOME (EXPENSE): Interest expense — (151.0 ) (7.2 ) 1.9 (156.3 ) Interest income — 3.7 31.3 (1.9 ) 33.1 Other - net 4.9 (1.7 ) 8.8 — 12.0 Total other income (expense) - net 4.9 (149.0 ) 32.9 — (111.2 ) LOSS BEFORE INCOME TAXES (29.7 ) (148.4 ) (220.9 ) — (399.0 ) Provision (benefit) for income taxes — (87.6 ) 36.0 — (51.6 ) Equity in earnings (losses) of consolidated subsidiaries, net of tax (317.7 ) 162.7 — 155.0 — NET INCOME (LOSS) $ (347.4 ) $ 101.9 $ (256.9 ) $ 155.0 $ (347.4 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 48.7 $ 1,283.2 $ (49.1 ) $ 1,282.8 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 0.5 727.5 (43.0 ) 685.0 Depreciation and amortization — 18.3 385.4 — 403.7 Selling, general and administrative 29.2 0.2 81.3 (6.1 ) 104.6 Gain on sale of assets to unconsolidated subsidiary — — (157.4 ) — (157.4 ) Loss on disposals of property and equipment — 1.7 7.7 — 9.4 Total costs and expenses 29.2 20.7 1,044.5 (49.1 ) 1,045.3 Equity in earnings of unconsolidated subsidiary — — 0.9 — 0.9 INCOME (LOSS) FROM OPERATIONS (29.2 ) 28.0 239.6 — 238.4 OTHER INCOME (EXPENSE): Interest expense — (155.8 ) (0.5 ) 0.6 (155.7 ) Interest income — 3.6 12.4 (0.6 ) 15.4 Gain on extinguishment of debt — 1.7 — — 1.7 Other - net 20.4 (20.7 ) (0.2 ) — (0.5 ) Total other income (expense) - net 20.4 (171.2 ) 11.7 — (139.1 ) INCOME (LOSS) BEFORE INCOME TAXES (8.8 ) (143.2 ) 251.3 — 99.3 Provision (benefit) for income taxes — (8.2 ) 34.8 — 26.6 Equity in earnings of consolidated subsidiaries, net of tax 81.5 209.4 — (290.9 ) — NET INCOME $ 72.7 $ 74.4 $ 216.5 $ (290.9 ) $ 72.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 40.4 $ 1,836.9 $ (34.1 ) $ 1,843.2 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 12.4 796.4 (29.1 ) 779.7 Depreciation and amortization — 19.2 382.7 1.0 402.9 Selling, general and administrative 28.5 5.5 74.2 (6.0 ) 102.2 Loss on disposals of property and equipment — 0.9 7.8 — 8.7 Material charges and other operating items — — 32.9 — 32.9 Total costs and expenses 28.5 38.0 1,294.0 (34.1 ) 1,326.4 INCOME (LOSS) FROM OPERATIONS (28.5 ) 2.4 542.9 — 516.8 OTHER INCOME (EXPENSE): Interest expense — (155.5 ) (4.1 ) 4.1 (155.5 ) Interest income — 5.1 2.8 (4.1 ) 3.8 Loss on extinguishment of debt — (31.2 ) — — (31.2 ) Other - net 21.2 (20.9 ) (8.6 ) — (8.3 ) Total other income (expense) - net 21.2 (202.5 ) (9.9 ) — (191.2 ) INCOME (LOSS) BEFORE INCOME TAXES (7.3 ) (200.1 ) 533.0 — 325.6 Provision (benefit) for income taxes — 5.1 (6.7 ) 6.6 5.0 Equity in earnings of consolidated subsidiaries, net of tax 327.9 7.8 — (335.7 ) — NET INCOME (LOSS) $ 320.6 $ (197.4 ) $ 539.7 $ (342.3 ) $ 320.6 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ (347.4 ) $ 101.9 $ (256.9 ) $ 155.0 $ (347.4 ) OTHER COMPREHENSIVE LOSS: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (17.9 ) (17.9 ) — 17.9 (17.9 ) Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes (5.6 ) (5.6 ) — 5.6 (5.6 ) (23.5 ) (23.5 ) — 23.5 (23.5 ) COMPREHENSIVE INCOME (LOSS) $ (370.9 ) $ 78.4 $ (256.9 ) $ 178.5 $ (370.9 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME $ 72.7 $ 74.4 $ 216.5 $ (290.9 ) $ 72.7 OTHER COMPREHENSIVE LOSS: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (33.3 ) (33.3 ) — 33.3 (33.3 ) Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit cost, net of income taxes 11.4 11.4 — (11.4 ) 11.4 (21.9 ) (21.9 ) — 21.9 (21.9 ) COMPREHENSIVE INCOME $ 50.8 $ 52.5 $ 216.5 $ (269.0 ) $ 50.8 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 320.6 $ (197.4 ) $ 539.7 $ (342.3 ) $ 320.6 OTHER COMPREHENSIVE INCOME: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (5.1 ) (5.1 ) — 5.1 (5.1 ) Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes 7.4 7.4 — (7.4 ) 7.4 2.3 2.3 — (2.3 ) 2.3 COMPREHENSIVE INCOME (LOSS) $ 322.9 $ (195.1 ) $ 539.7 $ (344.6 ) $ 322.9 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 2.5 $ 324.6 $ 699.6 $ — $ 1,026.7 Receivables - trade and other 0.2 2.6 248.4 — 251.2 Prepaid expenses and other current assets 0.4 8.3 13.7 — 22.4 Total current assets 3.1 335.5 961.7 — 1,300.3 Property and equipment - gross — 247.3 8,405.1 — 8,652.4 Less accumulated depreciation and amortization — 138.0 2,313.4 — 2,451.4 Property and equipment - net — 109.3 6,091.7 — 6,201.0 Investments in consolidated subsidiaries 5,068.3 1,596.4 — (6,664.7 ) — Due from affiliates 0.1 5,357.4 14.1 (5,371.6 ) — Long-term note receivable from unconsolidated subsidiary — — 456.0 — 456.0 Investment in unconsolidated subsidiary — — 41.2 — 41.2 Other assets — 109.6 9.6 — 119.2 $ 5,071.5 $ 7,508.2 $ 7,574.3 $ (12,036.3 ) $ 8,117.7 CURRENT LIABILITIES: Current portion of long-term debt $ — $ 201.2 $ — $ — $ 201.2 Accounts payable - trade 4.3 10.2 107.8 — 122.3 Deferred revenue — — 16.7 — 16.7 Accrued liabilities 1.2 76.5 35.7 — 113.4 Total current liabilities 5.5 287.9 160.2 — 453.6 Long-term debt — 2,309.7 — — 2,309.7 Due to affiliates 28.7 8.6 5,334.3 (5,371.6 ) — Other liabilities 2.3 264.3 41.1 — 307.7 Deferred income taxes - net — — 11.7 — 11.7 Shareholders' equity 5,035.0 4,637.7 2,027.0 (6,664.7 ) 5,035.0 $ 5,071.5 $ 7,508.2 $ 7,574.3 $ (12,036.3 ) $ 8,117.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Receivables - trade and other — 1.2 211.6 — 212.8 Prepaid expenses and other current assets 0.3 10.7 4.5 — 15.5 Total current assets 0.5 218.2 1,341.7 — 1,560.4 Property and equipment - gross — 241.9 8,592.0 — 8,833.9 Less accumulated depreciation and amortization — 121.4 2,159.8 — 2,281.2 Property and equipment - net — 120.5 6,432.2 — 6,552.7 Investments in consolidated subsidiaries 5,401.1 6,387.1 — (11,788.2 ) — Due from affiliates 0.2 680.0 11.5 (691.7 ) — Long-term note receivable from unconsolidated subsidiary — — 270.2 — 270.2 Investment in unconsolidated subsidiary — — 30.9 — 30.9 Other assets — 36.4 7.7 — 44.1 $ 5,401.8 $ 7,442.2 $ 8,094.2 $ (12,479.9 ) $ 8,458.3 CURRENT LIABILITIES: Accounts payable - trade $ 0.7 $ 12.9 $ 83.6 $ — $ 97.2 Deferred revenue — — 1.1 — 1.1 Accrued liabilities — 95.7 63.4 — 159.1 Total current liabilities 0.7 108.6 148.1 — 257.4 Long-term debt, less current portion — 2,510.3 — — 2,510.3 Due to affiliates 11.2 11.4 669.1 (691.7 ) — Other liabilities 3.8 261.2 28.6 — 293.6 Deferred income taxes - net — — 10.9 — 10.9 Shareholders' equity 5,386.1 4,550.7 7,237.5 (11,788.2 ) 5,386.1 $ 5,401.8 $ 7,442.2 $ 8,094.2 $ (12,479.9 ) $ 8,458.3 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (11.6 ) $ (139.6 ) $ 41.1 $ (50.0 ) $ (160.1 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (12.1 ) (157.1 ) — (169.2 ) Purchase of rigs — — (70.8 ) — (70.8 ) Contributions to unconsolidated subsidiary for note receivable — — (271.3 ) — (271.3 ) Proceeds from sale of assets to unconsolidated subsidiary — — 266.0 — 266.0 Repayments of note receivable from unconsolidated subsidiary — — 98.5 — 98.5 Proceeds from disposals of property and equipment — 1.4 11.3 — 12.7 Contributions to consolidated subsidiary for note receivable — (6.9 ) — 6.9 — Collections on note receivable from consolidated subsidiary — 1.9 — (1.9 ) — Investments in consolidated subsidiaries — (5.0 ) — 5.0 — Net cash used in investing activities — (20.7 ) (123.4 ) 10.0 (134.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 14.0 278.6 (292.6 ) — — Contributions from issuer — — 5.0 (5.0 ) — Proceeds from borrowings 5.0 — 1.9 (6.9 ) — Reductions of long-term debt — — (1.9 ) 1.9 — Dividends paid — — (50.0 ) 50.0 — Debt issue costs — — (6.1 ) — (6.1 ) Proceeds from exercise of share options 0.1 — — — 0.1 Shares repurchased for tax withholdings on vesting of restricted share units (5.2 ) — — — (5.2 ) Net cash provided by (used in) financing activities 13.9 278.6 (343.7 ) 40.0 (11.2 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2.3 118.3 (426.0 ) — (305.4 ) CASH AND CASH EQUIVALENTS, 0.2 206.3 1,125.6 — 1,332.1 CASH AND CASH EQUIVALENTS, $ 2.5 $ 324.6 $ 699.6 $ — $ 1,026.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATIING ACTIVITIES $ (10.0 ) $ (11.3 ) $ 336.2 $ (15.1 ) $ 299.8 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (18.3 ) (82.3 ) — (100.6 ) Deposit on purchase of rigs — — (7.7 ) — (7.7 ) Investment in unconsolidated subsidiary — — (30.0 ) — (30.0 ) Contributions to unconsolidated subsidiary for note receivable — — (357.7 ) — (357.7 ) Proceeds from sale of assets to unconsolidated subsidiary — — 357.7 — 357.7 Repayments of note receivable from unconsolidated subsidiary — — 87.5 — 87.5 Proceeds from disposals of property and equipment — 1.0 2.3 — 3.3 Investments in consolidated subsidiaries — 32.6 — (32.6 ) — Net cash provided by (used in) investing activities — 15.3 (30.2 ) (32.6 ) (47.5 ) CASH FLOWS FROM FINANCING ACTIVITES: Advances (to) from affiliates 12.2 (159.7 ) 147.5 — — Distributions to issuer — — (32.6 ) 32.6 — Reductions of long-term debt — (170.0 ) — — (170.0 ) Dividends paid — — (15.1 ) 15.1 — Shares repurchased for tax withholdings on vesting of restricted share units (5.7 ) — — — (5.7 ) Net cash provided by (used in) financing activities 6.5 (329.7 ) 99.8 47.7 (175.7 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3.5 ) (325.7 ) 405.8 — 76.6 CASH AND CASH EQUIVALENTS, 3.7 532.0 719.8 — 1,255.5 CASH AND CASH EQUIVALENTS, $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (6.4 ) $ (58.8 ) $ 1,101.3 $ (106.5 ) $ 929.6 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (44.5 ) (73.1 ) — (117.6 ) Proceeds from disposals of property and equipment — 0.4 5.8 — 6.2 Collections on note receivable from consolidated subsidiary — 689.7 — (689.7 ) — Investments in consolidated subsidiaries (0.2 ) (80.6 ) — 80.8 — Net cash provided by (used in) investing activities (0.2 ) 565.0 (67.3 ) (608.9 ) (111.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates (2.0 ) 58.2 (53.0 ) (3.2 ) — Contributions from parent/issuer — — 80.8 (80.8 ) — Proceeds from borrowings — 500.0 — — 500.0 Reductions of long-term debt — (511.8 ) (689.7 ) 689.7 (511.8 ) Payment of debt extinguishment costs — (24.0 ) — — (24.0 ) Dividends paid — — (109.7 ) 109.7 — Debt issue costs — (8.7 ) — — (8.7 ) Shares repurchased for tax withholdings on vesting of restricted share units (5.0 ) — — — (5.0 ) Excess tax benefits from share-based compensation — 2.6 — — 2.6 Net cash provided by (used in) financing activities (7.0 ) 16.3 (771.6 ) 715.4 (46.9 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13.6 ) 522.5 262.4 — 771.3 CASH AND CASH EQUIVALENTS, 17.3 9.5 457.4 — 484.2 CASH AND CASH EQUIVALENTS, $ 3.7 $ 532.0 $ 719.8 $ — $ 1,255.5 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES On October 17, 2017 the Company entered into a series of agreements with Saudi Aramco to form a joint venture, ARO. In connection with these transactions the Company has a number of relationships which are related party in nature. See Note 1 and Note 4 for a description of the Company's relationship with ARO and the related party transactions that have resulted from this joint venture. Mr. Tore Sandvold is a director of the Company and was a director of Schlumberger. Schlumberger is a provider of equipment and services to the Company. The Company has engaged in transactions in the ordinary course of business with Schlumberger totaling $41.8 million , $20.9 million and $28.4 million in 2018, 2017 and 2016, respectively, for the purchase of equipment and services. At December 31, 2018 and 2017 , the Company had a payable to Schlumberger of $16.5 million and $8.3 million , respectively. These transactions were on an arm’s-length basis and Mr. Sandvold was not involved in such transactions in any way. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II ROWAN COMPANIES PLC AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES FOR THE THREE YEARS ENDED DECEMBER 31, 2018 Additions Balance at Balance at Beginning Charged to End of Description of Period Expense Adjustments Deductions Period (In millions) Year Ended December 31, 2018: Valuation allowance of deferred tax assets $ 869.9 $ 104.4 $ — $ (68.4 ) $ 905.9 Year Ended December 31, 2017: Valuation allowance of deferred tax assets $ 889.8 $ — $ — $ (19.9 ) $ 869.9 Year Ended December 31, 2016: Valuation allowance of deferred tax assets $ 128.3 $ 761.5 $ — $ — $ 889.8 For the years ended December 31, 2018 and 2017, management has assessed the need for continued valuation allowances on deferred tax assets. The changes to the valuation allowance balance is discussed in Note 13 to our consolidated financial statements in Part II, Item 8 of this Annual Report. For the year ended December 31, 2016, management assessed negative and positive evidence and determined the need to establish a valuation allowance against the Luxembourg deferred tax assets of $747 million . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid temporary cash investments with maturities no greater than three months at the time of purchase. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable is stated at historical carrying value net of write-offs and allowance for doubtful accounts. The Company assesses the collectability of receivables and records adjustments to an allowance for doubtful accounts, which is recorded as an offset to accounts receivable, to cover the risk of credit losses. Any allowance is based on historical and other factors that predict collectability, including write-offs, recoveries and the evaluation and monitoring of credit quality. No allowance for doubtful accounts was required at December 31, 2018 or 2017 . The following table sets forth the components of Receivables - Trade and Other at December 31 (in millions): 2018 2017 Trade $ 231.7 $ 195.8 Income tax 12.0 8.0 Other 7.5 9.0 Total receivables - trade and other $ 251.2 $ 212.8 |
Property and Depreciation | Property and Depreciation The Company provides depreciation for financial reporting purposes under the straight-line method over the asset’s estimated useful life from the date the asset is placed into service until it is sold or becomes fully depreciated. Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 2 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 2 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various Expenditures for new property or enhancements to existing property are capitalized and depreciated over the asset’s estimated useful life. As assets are sold or retired, property cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in results of operations. Expenditures for maintenance and repairs are charged to expense as incurred and totaled $139 million in 2018 , $113 million in 2017 and $118 million in 2016 . |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate their carrying amounts may not be recoverable. For assets held and used, the Company determines recoverability by evaluating the undiscounted estimated future net cash flows based on projected day rates, operating costs, capital requirements and utilization of the asset under review. When the impairment of an asset is indicated, the Company measures the amount of impairment as the amount by which the asset’s carrying amount exceeds its estimated fair value. The Company measures fair value by estimating discounted future net cash flows under various operating scenarios (an income approach) and by assigning probabilities to each scenario in order to determine an expected value. The lowest level of inputs the Company uses to value assets held and used in the business are categorized as “significant unobservable inputs,” which are Level 3 inputs in the fair value hierarchy. For assets held for sale, the Company measures fair value based on equipment broker quotes, less anticipated selling costs, which are considered Level 3 inputs in the fair value hierarchy. Subsequent to the October 2018 announcement of the proposed combination with Ensco, the Company conducted an impairment test of our assets; however, the test resulted in no impairment as the estimated undiscounted cash flows from the assets exceeded the assets' carrying values. During the fourth quarter of 2017 , the Company conducted an impairment test of its assets; however, the tests resulted in no impairment as the estimated undiscounted cash flows from the assets exceeded the assets' carrying values. In 2016, the Company conducted an impairment test of its assets and determined that the carrying values for five of its jack-up drilling units aggregating $43.6 million were not recoverable and as a result, the Company recognized a non-cash impairment charge of $34.3 million in 2016. The Company measured fair values using the income approach described above. The fair value estimates required the Company to use significant unobservable inputs, which are internally developed assumptions not observable in the market, including assumptions related to future demand for drilling services, estimated availability of rigs and future day rates, among others. The impairments recognized in 2016 on the jack-up rigs are included in jack-up operations in the segment information in Note 14 . Impairment charges are included in Material charges and other operating items on the Consolidated Statements of Operations. |
Share-based Compensation | Share-based Compensation The Company generally recognizes compensation cost for employee share-based awards on a straight-line basis over a 36 -month service period. For employees who are retirement-eligible at the grant date or who will become retirement-eligible within six months of the grant date, compensation cost is generally recognized over a minimum period of six months. Generally, compensation cost for employees who become retirement eligible after six months following the grant date but before the maximum service period which is typically 36 months is amortized over the period from the grant date to the date the employee meets the retirement eligibility requirements. Fair value of RSAs and RSUs awarded to employees is based on the average of the high and low market price of the shares on the date of grant. Prior to January 1, 2017, compensation cost was recognized for awards that were expected to vest and were adjusted in subsequent periods if actual forfeitures differed from estimates. Pursuant to the adoption of ASU No. 2016-09 as of January 1, 2017, the Company no longer estimates forfeitures, but rather adjusts its compensation costs in the period that actual forfeitures occur. Non-employee directors may annually elect to receive either Directors RSUs or Directors ND RSUs. Both Directors RSUs and Directors ND RSUs vest at the earlier of the first anniversary of the grant date or the next annual meeting of shareholders following the grant date. Directors ND RSUs are settled on the vesting date, while Director RSUs are not settled until the director terminates service from the Board. Both Directors ND RSUs and Directors RSUs are settled in cash, shares or a combination thereof at the discretion of the Company Compensation Committee. Compensation cost for both Director RSUs and Director ND RSUs are recognized over the service period which is up to one year. Directors RSUs and Directors ND RSUs are accounted for under the liability method of accounting, the fair value is based on the market price of the underlying shares on the grant date, and compensation expense is adjusted for changes in fair value at each report date through the settlement date. Performance-based awards consist of P-Units, in which the payment for 2018 awards is contingent on the Company's absolute TSR performance and relative TSR performance as measured against a group of companies selected by the Company Compensation Committee. For 2016 and 2017 awards, payment is contingent on the Company's TSR relative to the selected industry peer group. Fair value of P-Units is determined using a Monte-Carlo simulation model. P-Units may be settled in cash, shares or a combination thereof at the Company Compensation Committee's discretion. All P-Units are accounted for under the liability method of accounting. Compensation cost is generally recognized on a straight-line basis over the service period and is adjusted for changes in fair value at each report date through the end of the performance period. For P-Units granted in 2017 and 2018 , the Company recognizes compensation cost on the accelerated method for those retirement eligible or who will become retirement eligible during the vesting period as such awards provide for pro-rata vesting rather than full vesting if a retirement eligible employee retires prior to the end of the 36 month service period. Fair value of options is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of options, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company intends to share-settle options that are exercised and has therefore accounted for them as equity awards. Fair value of SARs is determined using the Black-Scholes option pricing model. The Company uses the simplified method for determining the expected life of SARs, because it does not have sufficient historical exercise data to provide a reasonable basis on which to estimate expected term, as permitted under US GAAP. The Company has not granted any SARs since 2013. The Company intends to share-settle SARs that are exercised and has therefore accounted for them as equity awards. |
Foreign Currency Transactions | Foreign Currency Transactions A substantial majority of the Company's revenue is received in USD, which is the Company's functional currency. However, in certain countries in which the Company operates, local laws or contracts may require some payments to be received in the local currency. The Company is exposed to foreign currency exchange risk to the extent the amount of its monetary assets denominated in the foreign currency differs from its obligations in that foreign currency. In order to mitigate the effect of exchange rate risk, the Company attempts to limit foreign currency holdings to the extent they are needed to pay liabilities in the local currency. At December 31, 2018 and 2017 , the Company held Egyptian pounds in the amount of $1.7 million and $2.8 million , respectively, of which $0.7 million and $2.2 million are classified as Other Assets on the Consolidated Balance Sheets. At December 31, 2018 and 2017 , the Company held Angolan Kwanza in the amount of $2.0 million and $4.3 million , respectively, of which $1.7 million and $4.3 million are classified as Other Assets on the Consolidated Balance Sheets. See the "Assets and Liabilities Measured at Fair Value on a Recurring Basis" section of Note 8 for further information. Non-USD transaction gains and losses are recognized in “other - net” on the Consolidated Statements of Income. The Company recognized net currency exchange losses of $3.4 million , $0.4 million and $9.7 million in 2018 , 2017 and 2016 , respectively. In 2016, the exchange loss was primarily due to the devaluation of the Egyptian pound. |
Income Taxes | Income Taxes Rowan recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the financial statement and tax basis of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. Interest and penalties related to income taxes are included in income tax expense. The Company has elected the portfolio approach to release the stranded or disproportionate income tax effect in Accumulated other comprehensive income (loss) related to the pension and employee benefits plans. Under the portfolio approach, the disproportionate tax effect created by the release of the U.S. valuation allowance is reclassified from Accumulated other comprehensive income (loss) to continuing operations when the Company terminates the related plans. The Company has not provided deferred income taxes on certain undistributed earnings of non-U.K. subsidiaries. If facts and circumstances cause a change in expectations regarding future tax consequences, the resulting tax impact could have a material effect on the Company’s consolidated financial statements. |
Consolidation [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the Company's accounts and those of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Investments in operating entities where the Company has the ability to exercise significant influence, but where it does not control operating and financial policies are accounted for using the equity method. Significant influence generally exists if the Company has an ownership interest representing between 20% and 50% of the voting stock of the investee. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions. Equity in earnings of ARO, in the consolidated statements of operations, reflects the Company's proportionate share of ARO's net income, including any associated affiliate taxes. See the Note 4 for additional details related to the Company's equity method investment. |
Income (Loss) Per Common Share | Income (Loss) Per Common Share Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional weighted effect of dilutive securities outstanding during the period, which includes RSAs, RSUs, P-Units, share options and SARs granted under share-based compensation plans. The effect of share equivalents is not included in the computation for periods in which a net loss occurs because to do so would be anti-dilutive. A reconciliation of net income (loss) for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Net income (loss) $ (347.4 ) $ 72.7 $ 320.6 Income allocated to non-vested share awards — 0.1 1.5 Net income (loss) - adjusted for income allocated to non-vested share awards $ (347.4 ) $ 72.8 $ 322.1 A reconciliation of shares for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Average common shares outstanding 126.9 126.1 125.3 Effect of dilutive securities - share based compensation — 1.6 1.0 Average shares for diluted computations 126.9 127.7 126.3 Share options, SARs, RSAs, P-Units and RSUs granted under share-based compensation plans are anti-dilutive and excluded from diluted earnings per share when the hypothetical number of shares that could be repurchased under the treasury stock method exceeds the number of shares that can be exercised, or when the Company reports a net loss from continuing operations. Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions): 2018 2017 2016 Share options and appreciation rights $ 1.4 $ 1.5 $ 1.6 P-Units, RSAs and RSUs 5.7 2.1 0.9 Total potentially dilutive shares $ 7.1 $ 3.6 $ 2.5 |
Revenue and Expense Recognition | Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) , which sets forth a global standard for revenue recognition and replaces most existing industry-specific guidance. ASC 606 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective approach and applied ASC 606 to all outstanding revenue contracts. The adoption of this standard did not have a material impact on our statements of operations or statements of cash flows. In adopting ASC 606, the Company's revenue recognition differs from its historical revenue recognition pattern primarily as it relates to demobilization revenue. Such revenue, which was recognized upon completion of a contract under legacy accounting, is now estimated at contract inception and recognized over the term of the contract under the new guidance for customer contracts that have unconstrained demobilization provisions. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million increase to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Typical contractual arrangements The Company contracts its drilling rigs, related equipment and work crews primarily on a “day rate” basis. Under day rate contracts, the Company generally receives a fixed amount per day for each day it is performing drilling or related services. In addition, customers may pay all or a portion of the cost of moving equipment and personnel to and from the well site. Contracts generally range in duration from one month to multiple years or alternatively may be based on a set number of wells. Both duration types can include additional option periods at the discretion of the customer which can be at a set price or may be determined upon exercise of the option. The contractual day rate generally varies based on the status of the drilling operations and generally includes an operating rate, move rate, repair rate, force majeure rate, standby rate, or other fixed type of day rate specified in the contract. Other fees may be stipulated in the contract related to mobilization and demobilization of the rig, upfront preparation and/or upgrades, penalties, performance bonuses and reimbursements for third party charges or requested modifications. Termination clauses are also specified and generally allow the customer to cancel for lack of performance by the contractor with no related fee or for convenience for an early termination fee, typically calculated as a standby rate multiplied by the days remaining in the firm term in the contract often reduced by a specified percentage. Performance obligations and transaction price Customers generally contract for a comprehensive agreement to provide integrated services to operate a rig and drill a well. Drillers are seen by the operator as the overseer of all services and are compensating the driller to provide that entire suite of services. In identifying performance obligations, ASC 606 series guidance states that a contract may contain a single performance obligation composed of a series of distinct goods or services if 1) each distinct good or service is substantially the same and would meet the criteria to be a performance obligation satisfied over time and 2) each distinct good or service is measured using the same method as it relates to the satisfaction of the overall performance obligation. The Company determined that the delivery of day rate drilling services is within the scope of the series guidance as both criteria noted above are met. Specifically, 1) each distinct increment of service (i.e. hour available to drill) that the driller promises to transfer represents a performance obligation that would meet the criteria for recognizing revenue over time, and 2) the driller would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. Consideration for activities that are not distinct within the scope of our contracts, such as mobilization, demobilization and upgrade/modification, and do not align with a distinct time increment within the contract term are allocated across the single performance obligation and are recognized over the expected recognition period in proportion to the passage of each hour available to drill. Consideration for activities which align with a distinct time increment within the contract term is recognized in the period when the services are performed. The transaction price for a drilling contract is based on the amount of consideration the Company expects to be entitled for providing drilling services over the specified term and includes both fixed amounts and unconstrained variable amounts. Typically, at contract commencement, the only fixed/known consideration components of a drilling contract are negotiated lump-sum amounts to be received for reimbursement of costs incurred for mobilization, demobilization (where it is contractually guaranteed) and/or rig modifications or upgrades. The Company estimates variable consideration using the expected value method and includes the amount in transaction price to the extent it is not constrained. Variable consideration is generally constrained if it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Recognition of revenue Drilling services are consumed as the services are performed and generally enhance a well site which the customer/operator controls. Work performed on a well site does not create an asset with an alternative use to the contractor since the well/asset being worked on is owned by the customer. Therefore, the Company’s measure of progress for a drilling contract is hours available to drill over the contracted duration. This unit of measure is representative of an output method as described in ASC 606. The following chart details the types of fees found in a typical drilling contract and the related recognition method under ASC 606: Fee type Revenue Recognition Day rate Recognition is based on the day rates earned/invoiced as it relates to the level of service provided for each fractional-hour throughout the contract. Mobilization and upgrade/modification Revenue (both lump-sum and day rate amounts) is estimated at contract inception and included in the transaction price to be recognized over the expected recognition period. Demobilization Unconstrained demobilization revenue (both lump-sum and day rate amounts) is estimated at contract inception, included in the transaction price, and recognized over the expected recognition period in proportion to the passage of each hour available to drill. Bonuses and penalty Unconstrained bonus and/or penalty revenue is estimated at contract inception and included in the transaction price. Amounts are recognized in the period corresponding to the distinct hourly increment(s) of service provided (i.e. the specific period which the bonus or penalty relates to). Reimbursement Recognized (gross of costs incurred), at the point the product or service is consumed, and in the amount billed to the customer. Future performance obligation and financing arrangements Due to the recognition of day rate, as described above, the Company's primary future promised service relates to unconstrained demobilization. Under ASC 606 the Company recognizes unconstrained demobilization revenue over the life of the contract whereas in a typical drilling contract the demobilization, and the resulting cash payment for demobilization, does not occur until the end of the contract. At December 31, 2018 , the Company had a contract asset of $5.5 million for unconstrained demobilization revenue (see Note 3 ) related to the Company recognizing $5.5 million in unconstrained demobilization revenue into income during the year ended December 31, 2018 . We expect to recognize the remaining $5.9 million of our total estimated $11.4 million of unconstrained demobilization into revenue in 2019. We have applied the optional exemption afforded in ASU No. 2014-09 and have not disclosed the variable consideration related to the estimated future day rate revenues. Upon adoption of this standard as of January 1, 2018, the Company recognized a $5.5 million increase to retained earnings related to unconstrained demobilization provisions. Subsequently, during the first quarter of 2018, the Company received a $5.5 million cash payment for such demobilization related to one of the Company's contracts. Under ASC 606, a significant financing component may exist, regardless of whether the promise is explicitly stated or implied by the payment terms stipulated in a contract, where there is a separation between the timing of services provided and the timing of payment in contracts with terms exceeding one year. Generally, a typical drilling contract stipulates for billings on a monthly basis and payment terms vary by contract and customer but are customarily paid within 90 days. It is rare for a drilling contract to explicitly address a financing component and payments of up-front fees correspond to cash outlays which Rowan must undertake in order to complete a given drilling contract. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements - In addition to Revenue from Contracts with Customers (ASC 606) (see "Revenue Recognition" above), the Company has recently adopted the following accounting pronouncements: Statement of Cash Flows - In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight cash flow classification issues with the objective of reducing differences in practice. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its consolidated financial statements. Statement of Cash Flows Restricted Cash - In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC 230): Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees with the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no impact on its consolidated financial statements. Other Income - In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“ASU 2017-05”), which clarifies the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. As of January 1, 2018, the Company adopted this guidance on a modified retrospective basis concurrently with ASC 606. This adoption had no impact on the Company's consolidated financial statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (ASC 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires entities to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Entities will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . The ASU also allows only the service cost component to be eligible for capitalization. As of January 1, 2018, the Company adopted this guidance on a retrospective basis with no material impact on its consolidated financial statements. Accumulated Other Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (ASC 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. As permitted under this ASU, the Company elected early adoption of this ASU as of January 1, 2018 and recorded a $45.6 million increase to Retained earnings as a reclassification from Accumulated other comprehensive income. The stranded tax effects are for the U.S. income tax rate reduction recognized in the Consolidated Statements of Operations for the year ended December 31, 2017 for the deferred tax asset associated with employee benefit plans. Accounting Pronouncements - to be Adopted Lease Accounting – In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) : Amendments to the FASB ASC, which requires an entity to recognize lease assets and lease liabilities on the balance sheet and provide enhanced disclosures. Leases will continue to be classified as either finance (capital lease under ASC 840) or operating. Based on the original guidance, lessees and lessors would have been required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including a number of optional practical expedients that entities may elect to apply. In July 2018, the FASB issued ASU No. 2018-11, Leases (ASC 842): Targeted Improvements , which provides entities with an option to apply the guidance prospectively, instead of retrospectively, and allows for other classification provisions, as described below. ASC 842 is effective for annual and interim periods beginning after December 15, 2018. The Company adopted ASC 842 effective January 1, 2019 using a modified retrospective method and has elected to not retrospectively adjust amounts presented for prior periods. In addition, we will take advantage of various practical expedients, provided by the ASC 842, including: • use of the transition package of practical expedients which, among other things, allows us to carryforward the historical lease classification for existing leases; • making an accounting policy election that will keep leases with an initial term of 12 months or less off the balance sheet; and • not separating non-lease components from lease components for all classes of underlying lease assets. Prior to the issuance of ASU No. 2018-11, the Company preliminarily determined that its drilling contracts contained a lease component, and the adoption would require the Company to separately recognize revenue associated with the lease and services components. In July 2018, the FASB issued ASU No. 2018-11, which provides a practical expedient that allows entities to combine lease and non-lease components where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. In connection with the adoption of ASC 842, the Company has been working with the International Association of Drilling Contractors Accounting Sub-committee and has determined that its drilling contracts (excluding bareboat charter contracts with ARO where the Company provides the rig without providing any drilling services) are predominantly service contracts in nature and will therefore account for these contracts under ASC 606. The adoption of ASC 842 will have an impact on our consolidated balance sheets and disclosures contained in our notes to consolidated financial statements. Based on our portfolio of leases where we are the lessee, we will recognize between $10 million and $20 million of right of use lease assets and lease liabilities on our balance sheet upon adoption, primarily relating to real estate and other miscellaneous equipment. We do not expect the adoption of ASC 842 to have a material impact on our consolidated statements of operations or cash flows. Financial Instruments – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2020, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . Fair Value Measurement - In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies and adds certain disclosure requirements on fair value measurements including (i) removal of the requirements to disclose the amounts and reasons for as well as the policy for timing of transfers between Level 1 and Level 2 as well as descriptions of valuation processes used for Level 3 fair value measurements; (ii) certain modifications including clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and; (iii) add disclosures related to changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period as well as disclosures for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2020, with early adoption permitted. Adoption is required to be applied prospectively with respect to the amendments on changes in unrealized gains and losses, range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and narrative description of measurement uncertainty. All other amendments are to be applied retrospectively to all periods presented. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . Defined Benefit Plans - In August 2018, the FASB issued ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2021, with early adoption permitted. Adoption is required to be applied on a retrospective basis to all periods presented. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . Internal Use Software - In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company will be required to adopt the amended guidance in annual and interim reports beginning January 1, 2020, with early adoption permitted. Adoption may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. The Company is in the process of evaluating the impact this amendment will have on its consolidated financial statements . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of receivables and other | The following table sets forth the components of Receivables - Trade and Other at December 31 (in millions): 2018 2017 Trade $ 231.7 $ 195.8 Income tax 12.0 8.0 Other 7.5 9.0 Total receivables - trade and other $ 251.2 $ 212.8 |
Schedule of asset estimated useful life and salvage value | Estimated useful lives and salvage values are presented below: Life (in years) Salvage Value Jack-up drilling rigs: Hulls 25 to 35 10 % Legs 25 to 30 10 % Quarters 25 10 % Drilling equipment 2 to 25 0% to 10% Drillships: Hulls 35 10 % Drilling equipment 2 to 25 0% to 10% Drill pipe and tubular equipment 4 10 % Other property and equipment 3 to 30 various |
Reconciliation of income (loss) from continuing operations for basic and diluted income per share | A reconciliation of net income (loss) for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Net income (loss) $ (347.4 ) $ 72.7 $ 320.6 Income allocated to non-vested share awards — 0.1 1.5 Net income (loss) - adjusted for income allocated to non-vested share awards $ (347.4 ) $ 72.8 $ 322.1 |
Reconciliation of shares for basic and diluted income per share | A reconciliation of shares for basic and diluted income (loss) per share is set forth below (in millions): 2018 2017 2016 Average common shares outstanding 126.9 126.1 125.3 Effect of dilutive securities - share based compensation — 1.6 1.0 Average shares for diluted computations 126.9 127.7 126.3 |
Schedule of antidilutive securities | Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions): 2018 2017 2016 Share options and appreciation rights $ 1.4 $ 1.5 $ 1.6 P-Units, RSAs and RSUs 5.7 2.1 0.9 Total potentially dilutive shares $ 7.1 $ 3.6 $ 2.5 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Presented in the table below are the changes in deferred revenue during the year ended December 31 (in millions): 2018 Deferred Revenue - Deferred mobilization and upgrade/modification revenue Beginning balance $ 1.6 Plus: contractual additions (1) 51.0 Less: amortization 16.8 Ending balance $ 35.8 (1) Includes $28.6 million of deferred revenue related to capital expenditures for the Bess Brants , Earnest Dees , EXL I and EXL IV (all leased to ARO) to be received as reimbursement from ARO. A receivable of $28.6 million is included in Receivables - trade and other on the Consolidated Balance Sheet at December 31, 2018. The following table sets forth deferred contract costs, demobilization contract assets and deferred revenue on the Consolidated Balance Sheets (in millions): December 31, Balance Sheet Classification 2018 2017 Deferred Contract Costs and Demobilization Contract Assets Current Prepaid expenses and other current assets $ 8.7 $ 2.8 Noncurrent Other assets 0.4 — $ 9.1 $ 2.8 Deferred Revenue - Contract Liabilities Current Deferred revenue $ 16.7 $ 1.1 Noncurrent Other liabilities 19.1 0.5 $ 35.8 $ 1.6 Presented in the table below are the changes in deferred contract costs during the year ended December 31 (in millions): 2018 Deferred Contract Costs Asset Beginning balance $ 2.8 Plus: contractual additions 8.9 Less: amortization 8.1 Ending balance $ 3.6 Presented in the table below are the changes in contract assets (see Note 2 ) during the year ended December 31 (in millions): 2018 Contract Assets - Demobilization Beginning balance $ — Plus: contractual additions 5.5 Ending balance $ 5.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Estimated future amortization at December 31, 2018 of our deferred revenue and deferred contract costs to be recognized over the expected recognition period is set forth in the following table (in millions): 2019 2020 2021 2022 Total Amortization of deferred revenue $ 16.7 $ 9.6 $ 8.5 $ 1.0 $ 35.8 Amortization of deferred contract costs 3.2 0.2 0.2 — 3.6 |
EQUITY METHOD INVESTMENTS AND_2
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES [Abstract] | |
Equity Method Investments | Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions): Year ended October 17, 2017 to December 31, 2018 December 31, 2017 Revenue $ 348.8 $ 48.6 Direct operating costs (excluding items below) 194.0 22.2 Depreciation and amortization 67.4 12.9 Selling, general and administrative 27.0 6.1 (Gain) loss on disposals of property and equipment 1.4 (0.1 ) Income from Operations 59.0 7.5 Interest expense (26.2 ) (4.2 ) Provision for income taxes 12.3 1.6 Net Income $ 20.5 $ 1.7 Rowan's equity in earnings from ARO $ 10.3 $ 0.9 December 31, 2018 December 31, 2017 Current assets $ 348.9 $ 108.6 Non-current assets 727.0 459.7 Total assets $ 1,075.9 $ 568.3 Current liabilities $ 112.2 $ 29.2 Non-current liabilities 949.1 545.1 Total liabilities $ 1,061.3 $ 574.3 The following summarizes the total assets and liabilities as reflected in the Company's consolidated balance sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any receivable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO. December 31, 2018 December 31, 2017 Total assets $ 566.0 $ 319.5 Total liabilities 6.1 10.8 Maximum exposure to loss $ 559.9 $ 308.7 |
Schedule of Related Party Transactions | In October 2017 and October 2018, the Company contributed cash to ARO in exchange for a 10-year shareholder note receivable from ARO, at a stated interest rate of LIBOR plus two percent (See Note 1 ). Interest is being recognized as a part of Interest income in the Company's Consolidated Statements of Operations and totaled approximately $12.9 million for the year ended December 31, 2018 , and $2.1 million for the period from October 17, 2017 to December 31, 2017. Interest was received in kind and accreted to the note in 2018. Activity related to the shareholder note receivable (in millions): Long-term note receivable from unconsolidated subsidiary 2018 2017 Beginning Balance January 1, $ 270.2 $ — Origination 271.3 357.7 See Note 1 Repayments (2) (98.5 ) (87.5 ) See Note 1 Interest in kind 12.0 — Other 1.0 1.1 Total 456.0 271.3 Less: Current Portion (1) — 1.1 Ending Balance December 31, $ 456.0 $ 270.2 (1) Included in Receivables - trade and other on the Company's Consolidated Balance Sheet. (2) Includes excess cash distributed back to Rowan in October of 2018 and October 2017 (See Note 1 ). In conjunction with the establishment of ARO, the Company entered into a series of agreements with ARO including: a Transition Services Agreement, Secondment Agreement and Lease Agreements. There is also an agreement between the Company and ARO, pursuant to which ARO will reimburse the Company for certain Capital Expenditures related to four rigs leased to ARO (See Note 3 ). Pursuant to these agreements the Company, or its seconded employees, will provide various services to ARO, and in return, the Company is to be provided remuneration for those services. From time to time Rowan may sell equipment or supplies to ARO. Revenue and other amounts recognized by Rowan related to these agreements and transactions is as follows (in millions): Year ended October 17, 2017 to December 31, 2018 December 31, 2017 Secondment Revenue - Jack-ups $ 55.9 $ 9.2 Lease and related Revenue - Jack-ups 24.4 — Transition Services Revenue - Unallocated 33.8 7.4 Sales of supplies - Jack-ups 5.0 0.5 Total Revenue received from ARO $ 119.1 $ 17.1 Reimbursement of preparation costs (a) $ — $ 1.6 Proceeds from equipment sales to ARO (b) 10.8 1.0 (a) For the year ended December 31, 2017, the reimbursement resulted in a reduction in expense of $1.3 million and a $0.3 million decrease to Prepaid expenses and other current assets. The entire $1.6 million was included in Receivables - trade and other at December 31, 2017 for the amount to be reimbursed. (b) A gain of $1.2 million for the year ended December 31, 2018 was recognized in Loss on disposals of property and equipment on the Consolidated Statements of Operations. There was no gain or loss recognized for the year ended December 31, 2017. $3.5 million and $1.0 million is included in Receivables - trade and other as of December 31, 2018 and 2017, respectively, for the $10.8 million and $1.0 million purchase price, respectively. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued liabilities | Accrued liabilities at December 31 consisted of the following (in millions): 2018 2017 Pension and other postretirement benefits $ 16.8 $ 27.0 Compensation and related employee costs 45.0 69.0 Interest 34.0 32.0 Income taxes 7.1 15.4 Other 10.5 15.7 Total accrued liabilities $ 113.4 $ 159.1 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Line of Credit Facility Covenant [Table Text Block] | the Company was in compliance with each of the financial covenants under the New Credit Agreement as follows: Min/Max Value as of Financial covenant Requirement December 31, 2018 Debt to capitalization Ratio 55 % 33 % Liquidity (in millions) $ 300.0 $ 2,285.6 Marketed Rig Value Ratio 3.00 4.10 Guaranteed Rig Value Ratio 80 % 86 % |
Schedule of long-term debt | Long-term debt at December 31 consisted of the following (in millions): 2018 2017 7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate) $ 201.2 $ 200.9 4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate) 623.8 624.6 4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate) 396.3 395.9 7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate) 497.8 497.5 5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate) 395.3 395.1 5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate) 396.5 396.3 Total carrying value 2,510.9 2,510.3 Current portion (1) 201.2 — Carrying value, less current portion $ 2,309.7 $ 2,510.3 (1) Current portion of long-term debt at December 31, 2018 included the 7.875% Senior Notes due in August 2019. |
Schedule of maturities of long-term debt | The following is a summary of scheduled long-term debt maturities by year, as of December 31, 2018 (in millions): 2019 $ 201.4 2020 — 2021 — 2022 620.8 2023 — Thereafter 1,698.1 $ 2,520.3 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table provides the revaluation effect of the Company’s derivative on the Consolidated Statements of Operations (in millions): Amount of gain (loss) recognized in income (loss) Derivative Classification of gain (loss) recognized in income (loss) Year ended December 31, 2017 Year ended December 31, 2016 FCX Contingent Payments Provisions Other - net $ (0.1 ) $ (0.1 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Concentration of Risk [Table Text Block] | Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the years ended December 31 are set forth below: Percentage of revenue from major customers: Years ended December 31, Customer Segment 2018 2017 2016 Saudi Aramco Jack-ups 28 % 29 % 20 % Anadarko Deepwater 14 % 17 % 8 % ARO Drilling (1) Jack-ups and Unallocated and other 14 % 1 % — % BP Trinidad and Tobago Jack-ups 10 % 6 % 5 % Repsol Deepwater and Jack-ups 2 % 7 % 12 % ConocoPhillips Jack-ups 2 % 7 % 11 % Freeport-McMoRan Deepwater and Jack-ups 1 % — % 12 % Cobalt International (2) Deepwater — % 14 % 12 % (1) Includes revenue related to services provided to ARO (see Note 4 ). (2) The year ended December 31, 2017, includes amortization of $95.9 million of revenue deferred in 2016 related to a contract amendment to the Company's subsidiary's drilling contract with Cobalt International (See Note 1 ). Percentage of receivables from major customers: December 31, Customer Segment 2018 2017 Saudi Aramco Jack-ups 21 % 34 % Anadarko Deepwater — % 19 % ARO Drilling (1) Jack-ups and Unallocated and other 30 % 9 % BP Trinidad and Tobago Jack-ups 9 % 6 % Repsol Deepwater and Jack-ups 4 % 5 % ConocoPhillips Jack-ups — % 8 % Freeport-McMoRan Deepwater and Jack-ups 1 % — % Cobalt International Deepwater — % — % (1) Includes receivables related to services provided to ARO (see Note 4 ). |
Assets and liabilities measured at fair value on recurring basis | Assets measured at fair value on a recurring basis are presented below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant other unobservable inputs (Level 3) December 31, 2018: Assets - cash equivalents $ 990.5 $ 990.5 $ — $ — Other assets (Egyptian Pounds) 0.7 0.7 — — Other assets (Angolan Kwanza) 1.7 1.7 — — December 31, 2017: Assets - cash equivalents $ 1,332.1 $ 1,332.1 $ — $ — Other assets (Egyptian Pounds) 2.2 2.2 — — Other assets (Angolan Kwanza) 4.3 4.3 — — |
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis and whose carrying values were remeasured during the years ended December 31 are set forth below (in millions): Estimated fair value measurements Fair value Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total gains (losses) 2016: Property and equipment, net (1) $ 9.3 $ — $ — $ 9.3 $ (34.3 ) (1) This represents a non-recurring fair value measurement made at September 30, 2016 for five jack-up drilling units. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments to be made under noncancelable operating leases | At December 31, 2018 , future minimum payments to be made under noncancelable operating leases were as follows (in millions): 2019 $ 7.6 2020 5.1 2021 1.9 2022 1.8 2023 1.8 Later years 10.0 $ 28.2 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation cost charged to expense under all share-based incentive awards | Compensation cost charged to expense under all share-based incentive awards is presented below (in millions): 2018 2017 2016 Restricted shares and restricted share units $ 18.0 $ 19.3 $ 21.8 Share appreciation rights — — 0.2 Performance-based awards 6.0 9.7 12.6 Total compensation cost $ 24.0 $ 29.0 $ 34.6 |
Restricted share activity | Activity related to RSAs for the year ended December 31, 2018 , is summarized below: Number of Shares Weighted-average grant-date fair value per share (in thousands) Nonvested at January 1, 2018 — $ — Granted (1) 367 14.99 Vested (1) (141 ) 15.18 Nonvested at December 31, 2018 226 $ 14.88 (1) On December 18, 2018, the Compensation Committee converted RSUs of certain officers to RSAs to mitigate potential adverse tax consequences to the Company and such employees. The vesting of a portion of these RSA grants was accelerated and shares withheld to satisfy withholding tax obligations. Such vested portion of the RSAs had a fair market value on the vesting date equal to the employment and income tax liability imposed on each officer in connection with such officer’s commitment to make an election under Section 83(b) of the Code with respect to the receipt of the RSAs. Such RSAs remain subject to the same terms and conditions of the underlying RSU Award from which they were converted and, with the exception of those RSAs vested and withheld for tax purposes, will be subject to forfeiture, as applicable, by each such officer in the event that the underlying RSU Awards would not have vested. The price of the Company's stock, immediately before the conversion of RSUs to RSAs as compared to the price on the date of such conversion, decreased; thus there was no increase to compensation expense related to the modification. |
Employee restricted share unit activity | Employee RSU activity for the year ended December 31, 2018 , follows: Number of Shares Weighted-average grant-date fair value per share (in thousands) Nonvested at January 1, 2018 2,436 $ 15.59 Granted 1,334 13.60 Vested (1,004 ) 15.44 Forfeited (193 ) 14.32 Cancelled (1) (367 ) 14.99 Nonvested at December 31, 2018 2,206 $ 14.67 (1) On December 18, 2018, the Compensation Committee converted RSUs of certain officers to RSAs to mitigate potential adverse tax consequences to the Company and such employees. The vesting of a portion of these RSA grants was accelerated and shares witheld to satisfy withholding tax obligations. Such vested portion of the RSAs had a fair market value on the vesting date equal to the employment and income tax liability imposed on each officer in connection with such officer’s commitment to make an election under Section 83(b) of the Code with respect to the receipt of the RSAs. Such RSAs remain subject to the same terms and conditions of the underlying RSU Award from which they were converted and, with the exception of those RSAs vested and withheld for tax purposes, will be subject to forfeiture, as applicable, by each such officer in the event that the underlying RSU Awards would not have vested. The price of the Company's stock, immediately before the conversion of RSUs to RSAs as compared to the price on the date of such conversion, decreased; thus there was no increase to compensation expense related to the modification. |
Non-employee director deferred restricted share units activity | Directors RSUs for the year ended December 31, 2018 , follows: Number of shares Weighted-average grant-date fair value per share (in thousands) Outstanding at January 1, 2018 203 $ 25.62 Granted 26 15.29 Settled — — Outstanding at December 31, 2018 229 $ 24.44 Vested at December 31, 2018 203 $ 25.62 |
Non Employee director non-deferred restricted share activity | Activity related to Directors ND RSUs for the year ended December 31, 2018 , follows: Number of shares Weighted-average grant-date fair value per share (in thousands) Outstanding at January 1, 2018 91 $ 13.24 Granted 78 15.29 Settled (91 ) 13.24 Outstanding at December 31, 2018 78 $ 15.29 Vested at December 31, 2018 — $ — |
Stock appreciation rights activity | SARs activity for the year ended December 31, 2018 , is summarized below: Number of shares under SARs Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) (in millions) Outstanding at January 1, 2018 1,029 $ 31.03 Forfeited or expired (17 ) 36.86 Outstanding at December 31, 2018 1,012 $ 30.93 2.0 $ — Exercisable at December 31, 2018 1,012 $ 30.93 2.0 $ — |
Weighted-average assumptions used to determine fair values of Share Options | Fair values of Share options granted were determined using the Black-Scholes option pricing model with the following weighted-average assumptions: February 22, 2017 Expected life in years 5.5 Risk-free interest rate 1.987 % Expected volatility 40.551 % Weighted average grant date per share fair value $ 7.04 |
Share option activity | Share option activity for the year ended December 31, 2018 , is summarized below: Number of shares under option Weighted-average exercise price Weighted-average remaining contractual term (in years) Aggregate intrinsic value (in thousands) (in thousands) Outstanding at January 1, 2018 455 $ 17.08 Exercised (5 ) 15.31 $ 19.2 Expired (95 ) 15.31 Outstanding at December 31, 2018 355 $ 17.59 5.1 — Exercisable at December 31, 2018 — $ — 0.0 $ — |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Over the past 10 years, there have been various changes to our pension plan which have significantly reduced participant benefits under such plan. Further, on May 11, 2018, the Company communicated changes to the participants in its pension plan, that will "freeze" this plan going forward. Based on these changes, effective as of June 30, 2018, eligible participants will no longer receive pay credits and newly hired employees will not be eligible to participate in the pension plan. For the purposes of remeasurement, the Company used the date of April 30, 2018 as it was the month-end date that is closest to May 11, 2018. The impacts of these changes to the plan as of May 11, 2018, are presented in the table below (in millions): Liability increase (decrease) Accumulated other comprehensive income (loss) Deferred tax asset decrease (increase) Income included in Other- net Income tax expense (increase) decrease Plan change to projected benefit obligation $ (1.6 ) $ 1.3 $ 0.3 $ — $ — Remeasurement gain (29.9 ) 23.6 6.3 — — Curtailment — (9.0 ) (1.0 ) 11.4 (1.4 ) Total $ (31.5 ) $ 15.9 $ 5.6 $ 11.4 $ (1.4 ) The Company records unrealized gains and losses related to net periodic pension and other postretirement benefit cost net of estimated taxes in Accumulated other comprehensive income (loss). On November 27, 2017, the Company purchased annuities to cover post-65 retiree medical benefits for current retirees as of the purchase date. The annuity purchase settled post-65 medical benefits (i.e., Health Reimbursement Account, or “HRA”, amounts) for affected participants, with the insurer taking responsibility for all benefit payments on and after January 1, 2019. The Company retained the obligation for 2018 benefit payments. The Company determined that this annuity purchase resulted in a full settlement of the post-65 medical obligation and as a result the entirety of the annuity purchase was treated as a settlement and resulted in a settlement loss of $5.8 million , calculated as of December 31, 2017. On August 10, 2016, the Company communicated changes to the participants in its postretirement benefits plan, which was previously frozen to new entrants in 2008. Based on these changes, effective as of January 1, 2017, eligible participants now receive a health reimbursement account that provides a fixed dollar benefit per year. The impact of these changes to the plan and related, as of August 10, 2016, are presented in the table below (in millions): Liability increase (decrease) Accumulated other comprehensive income (loss) Deferred tax liability increase (decrease) Plan change benefit $ (39.9 ) $ 25.9 $ 14.0 Remeasurement loss 5.2 (3.4 ) (1.8 ) Actuarial loss 5.2 (3.3 ) (1.9 ) Total $ (29.5 ) $ 19.2 $ 10.3 |
Accumulated benefit obligations | The accumulated benefit obligations, which are presented below for all plans in the aggregate at December 31, are based on services rendered to date, but exclude the effect of future salary increases (in millions): 2018 2017 Accumulated benefit obligation $ 754.7 $ 830.8 |
Changes in benefit obligations and plan assets, and funded status and weighted-average assumptions used to determine the benefit obligation | The following table presents the changes in benefit obligations and plan assets for the years ended December 31 and the funded status and weighted-average assumptions used to determine the benefit obligation at each year end (dollars in millions): 2018 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Projected benefit obligations: Balance, January 1 $ 835.8 $ 18.0 $ 853.8 $ 772.1 $ 29.9 $ 802.0 Interest cost 27.9 0.5 28.4 25.5 0.9 26.4 Service cost 6.1 0.1 6.2 12.3 0.1 12.4 Actuarial (gain) loss (51.4 ) (1.2 ) (52.6 ) 78.0 5.5 83.5 Plan amendments (0.5 ) — (0.5 ) — — — Plan settlements — — — — (16.4 ) (16.4 ) Plan curtailments (1.1 ) — (1.1 ) — — — Exchange rate changes (0.4 ) — (0.4 ) 0.3 — 0.3 Benefits paid (57.7 ) (1.4 ) (59.1 ) (52.4 ) (2.0 ) (54.4 ) Balance, December 31 758.7 16.0 774.7 835.8 18.0 853.8 Plan assets: Fair value, January 1 609.7 — 609.7 544.6 — 544.6 Actual return (40.5 ) — (40.5 ) 88.0 — 88.0 Employer contributions 24.2 — 24.2 29.3 — 29.3 Plan settlements — — — — — — Exchange rate changes (0.2 ) — (0.2 ) 0.2 — 0.2 Benefits paid (57.7 ) — (57.7 ) (52.4 ) — (52.4 ) Fair value, December 31 535.5 — 535.5 609.7 — 609.7 Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Amounts recognized in Consolidated Balance Sheet: Accrued liabilities $ (15.1 ) $ (1.7 ) $ (16.8 ) $ (24.5 ) $ (2.5 ) $ (27.0 ) Other liabilities (long-term) (208.1 ) (14.3 ) (222.4 ) (201.6 ) (15.5 ) (217.1 ) Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Accumulated contributions in excess of (less than) net periodic benefit cost $ 141.7 $ (25.8 ) $ 115.9 $ 120.2 $ (39.1 ) $ 81.1 Amounts not yet reflected in net periodic benefit cost: Actuarial (loss) gain (364.2 ) (4.3 ) (368.5 ) (358.1 ) (6.3 ) (364.4 ) Prior service credit (0.7 ) 14.1 13.4 11.8 27.4 39.2 Total accumulated other comprehensive income (loss) (364.9 ) 9.8 (355.1 ) (346.3 ) 21.1 (325.2 ) Net benefit liabilities $ (223.2 ) $ (16.0 ) $ (239.2 ) $ (226.1 ) $ (18.0 ) $ (244.1 ) Weighted-average assumptions: Discount rate 4.35 % 4.23 % 3.68 % 3.52 % Rate of compensation increase 3.78 % 4.28 % |
Amounts amortized from accumulated other comprehensive to net periodic benefits cost | The Company estimates the following amounts, which are classified in accumulated other comprehensive loss, a component of shareholders’ equity, will be recognized as net periodic benefit cost in 2019 (in millions): Pension benefits Other retirement benefits Total Actuarial (loss) gain $ (9.0 ) $ (0.6 ) $ (9.6 ) Prior service credit — 12.4 12.4 Total amortization $ (9.0 ) $ 11.8 $ 2.8 |
Components of net periodic pension cost and weighted-average assumptions used to determine net cost | The components of net periodic pension cost and the weighted-average assumptions used to determine net cost were as follows (dollars in millions): 2018 2017 2016 Service cost (1) $ 6.1 $ 12.3 $ 16.3 Interest cost (2) 27.9 25.5 26.3 Expected return on plan assets (2) (36.5 ) (37.7 ) (39.6 ) Recognized actuarial loss (2) 18.5 23.3 21.0 Amortization of prior service credit (2) (1.7 ) (5.1 ) (5.0 ) Curtailment gain recognized (2) (11.4 ) — (0.4 ) Settlement loss recognized (2) — — 0.5 Net periodic pension cost $ 2.9 $ 18.3 $ 19.1 Discount rate 3.69 % 4.29 % 4.53 % Expected return on plan assets 6.68 % 7.13 % 7.28 % Rate of compensation increase 4.28 % 4.14 % 4.14 % (1) Included in Direct operating costs and Selling, general and administrative on the Consolidated Statements of Operations (2) Included in Other - net on the Consolidated Statements of Operations The components of net periodic cost of other postretirement benefits and the weighted average discount rate used to determine net cost were as follows (dollars in millions): 2018 2017 2016 Service cost (1) $ 0.1 $ 0.1 $ 0.3 Interest cost (2) 0.5 0.9 1.6 Amortization of prior service credit (2) (13.3 ) (13.3 ) (6.4 ) Amortization of net (gain) loss (2) 0.8 0.7 0.3 Settlement loss (2) — 5.8 0.1 Net periodic cost of other postretirement benefits $ (11.9 ) $ (5.8 ) $ (4.1 ) Discount rate 3.50 % 3.91 % 4.18 % (1) Included in Direct operating costs and Selling, general and administrative on the Consolidated Statements of Operations (2) Included in Other - net on the Consolidated Statements of Operations |
Target allocations among asset categories and fair values of each category of plan assets, classified by level within fair value hierarchy | Target allocations among asset categories and the fair values of each category of plan assets as of December 31, 2018 and 2017 , classified by level within the US GAAP fair value hierarchy are presented below. The plans will periodically reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in millions): Target range Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2018: Equities: 53% to 69% U.S. large cap 22% to 28% $ 131.6 $ — $ 131.6 $ — U.S. small cap 4% to 10% 35.6 — 35.6 — International all cap 21% to 29% 129.9 — 129.9 — International small cap 2% to 8% 28.8 — 28.8 — Real estate equities 0% to 13% 51.7 — 51.7 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 4.1 — 4.1 — Aggregate 9% to 19% 73.9 — 73.9 — Core plus 9% to 19% 74.7 74.7 — — Group annuity contracts 5.2 — 5.2 — Total $ 535.5 $ 74.7 $ 460.8 $ — December 31, 2017: Equities: 53% to 69% U.S. large cap 22% to 28% $ 158.2 $ — $ 158.2 $ — U.S. small cap 4% to 10% 45.3 — 45.3 — International all cap 21% to 29% 156.2 — 156.2 — International small cap 2% to 8% 36.3 — 36.3 — Real estate equities 0% to 13% 50.6 — 50.6 — Fixed income: 25% to 35% Cash and equivalents 0% to 10% 6.2 — 6.2 — Aggregate 9% to 19% 74.9 — 74.9 — Core plus 9% to 19% 78.1 78.1 — — Group annuity contracts 3.9 — 3.9 — Total $ 609.7 $ 78.1 $ 531.6 $ — |
Estimated future annual payments for pension and other postretirement benefits | Estimated future annual benefit payments from plan assets are presented below. Such amounts are based on existing benefit formulas and include the effect of future service (in millions): Pension benefits Other postretirement benefits Year ended December 31, 2019 $ 48.5 $ 1.7 2020 49.7 1.6 2021 50.5 1.4 2022 51.0 1.4 2023 51.3 1.3 2024 through 2028 256.4 5.9 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income (loss) for the period (in millions): 2018 2017 2016 Amounts recognized as a component of net periodic pension and other postretirement benefit cost: Amortization of net loss $ (19.3 ) $ (29.8 ) $ (21.9 ) Amortization and curtailment recognition of prior service credit 26.4 18.4 10.7 Total before income taxes 7.1 (11.4 ) (11.2 ) Income tax (expense) benefit (1.5 ) — 3.8 Total reclassifications for the period, net of income taxes $ 5.6 $ (11.4 ) $ (7.4 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Significant components of income taxes attributable to continuing operations | The significant components of income taxes attributable to continuing operations are presented below (in millions): 2018 2017 2016 Current: U.S. $ 2.9 $ (14.9 ) $ 10.0 Non - U.S. 13.6 16.8 32.9 State — — — Current expense (benefit) 16.5 1.9 42.9 Deferred: U.S. (69.8 ) (1.2 ) (20.9 ) Non - U.S. 1.7 25.9 (17.0 ) Deferred provision (benefit) (68.1 ) 24.7 (37.9 ) Total provision (benefit) $ (51.6 ) $ 26.6 $ 5.0 |
Income tax expense (benefit), income tax reconciliation | The reconciliation of differences between the Company's provision for income taxes and the amount determined by applying the U.K. statutory rate to income before income taxes are set forth below (dollars in millions): 2018 2017 2016 U.K. statutory rate 19.00 % 19.25 % 20.00 % Tax at statutory rate $ (75.8 ) $ 19.1 $ 65.1 Increase (decrease) due to: Foreign rate differential 9.6 (39.5 ) (92.7 ) Deferred intercompany gain/loss — — (20.1 ) Foreign asset basis difference 1.8 (38.1 ) 405.9 Luxembourg restructuring operating loss (2) (22.9 ) — (1,180.2 ) Change in valuation allowance 37.6 (29.4 ) 814.7 Prior period adjustments (2.9 ) 3.6 (4.1 ) Unrecognized tax benefits (4.7 ) (24.1 ) 7.1 U.S. tax on RCI non-U.S. subsidiaries 9.4 5.4 6.3 Enactment of tax reform (1) (7.4 ) 129.1 — Foreign tax credits/deductions — (0.8 ) (1.5 ) Other, net 3.7 1.3 4.5 Total provision (benefit) $ (51.6 ) $ 26.6 $ 5.0 (1) 2017 includes the U.S. tax rate reduction, one-time transition tax, and U.S. tax on applicable non-U.S. subsidiaries earnings. The impact of the 2017 items are fully offset in the change in valuation allowance above. 2018 includes the finalization of these impacts. (2) In 2016, organizational restructuring resulted in a Luxembourg net operating loss of $4,534 million resulting in a deferred tax asset of $1,180 million with an offsetting deferred tax liability for book over tax asset basis difference of $409 million and a valuation allowance of $747 million for the net deferred tax asset that is not expected to be realized. |
Deferred tax assets and liabilities | Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in millions): 2018 2017 Deferred tax assets: Accrued employee benefit plan costs $ 48.2 $ 46.2 U.S. net operating loss 40.6 39.3 U.K. net operating loss 6.0 2.4 Trinidad net operating loss 5.2 5.9 Luxembourg net operating loss 1,249.4 1,163.2 Suriname net operating loss 3.9 3.9 Other NOLs and tax credit carryforwards 38.0 38.1 Other 18.6 16.3 Total deferred tax assets 1,409.9 1,315.3 Less: valuation allowance (905.9 ) (869.9 ) Deferred tax assets, net of valuation allowance 504.0 445.4 Deferred tax liabilities: Property and equipment 396.2 412.8 Other 12.3 11.9 Total deferred tax liabilities 408.5 424.7 Net deferred tax asset (liability) $ 95.5 $ 20.7 |
Changes in gross unrecognized tax benefits | The following table sets forth the changes in the Company’s gross unrecognized tax benefits for the years ended December 31 (in millions): 2018 2017 2016 Gross unrecognized tax benefits - beginning of year $ 102.0 $ 120.1 $ 65.1 Gross increases - tax positions in prior period 1.1 1.4 46.2 Gross decreases - tax positions in prior period (0.3 ) (5.6 ) (0.6 ) Gross increases - current period tax positions 3.2 3.1 10.9 Settlements — (0.8 ) (1.5 ) Lapse of statutes of limitation (7.8 ) (16.2 ) — Gross unrecognized tax benefit - end of year $ 98.2 $ 102.0 $ 120.1 |
Schedule of income (loss) before income tax, domestic and foreign | The components of income (loss) from continuing operations before income taxes were as follows (in millions): 2018 2017 2016 U.S. $ (10.3 ) $ (63.7 ) $ (180.2 ) Non-U.S. (388.7 ) 163.0 505.8 Total $ (399.0 ) $ 99.3 $ 325.6 |
SEGMENT AND GEOGRAPHIC AREA I_2
SEGMENT AND GEOGRAPHIC AREA INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | "Gain on sale of assets to unconsolidated subsidiary" is related to the sale of two jack-ups in 2018 and three jack-ups and related assets in 2017 to ARO and is included in the Jack-ups segment (see Note 1 and Note 15 ). Depreciation and amortization and Selling, general and administrative expenses related to the Company's corporate function and other administrative offices have not been allocated to its operating segments for purposes of measuring segment operating income and are included in "Unallocated and other." In addition, revenue and general and administrative costs related to providing transition services to ARO are included in "Unallocated and other" (see Note 4 ). "Other operating items" consists of, to the extent applicable, non-cash impairment charges, losses on disposals of property and equipment and a litigation related item. Segment results are presented below: Years ended December 31, Deepwater Jack-ups ARO Unallocated and other Reportable segments total Eliminations and adjustments Consolidated (In millions) 2018 Revenue $ 158.1 $ 632.9 $ 348.8 $ 33.8 $ 1,173.6 $ (348.8 ) $ 824.8 Operating expenses: Direct operating costs (excluding items below) 168.6 514.1 194.0 — 876.7 (194.0 ) 682.7 Depreciation and amortization 108.5 278.3 67.4 2.1 456.3 (67.4 ) 388.9 Selling, general and administrative — — 27.0 96.1 123.1 (27.0 ) 96.1 Gain on sale of assets to unconsolidated subsidiary — (65.8 ) — — (65.8 ) — (65.8 ) Other operating items - expense 1.6 5.3 1.4 5.2 13.5 (1.4 ) 12.1 Merger and related costs — — — 8.9 8.9 — 8.9 Equity in earnings of unconsolidated subsidiary — — — — — 10.3 10.3 Income (loss) from operations $ (120.6 ) $ (99.0 ) $ 59.0 $ (78.5 ) $ (239.1 ) $ (48.7 ) $ (287.8 ) 2017 Revenue $ 467.9 $ 807.5 $ 48.6 $ 7.4 $ 1,331.4 $ (48.6 ) $ 1,282.8 Operating expenses: Direct operating costs (excluding items below) 151.4 533.6 22.2 — 707.2 (22.2 ) 685.0 Depreciation and amortization 111.6 289.4 12.9 2.7 416.6 (12.9 ) 403.7 Selling, general and administrative — — 6.1 104.6 110.7 (6.1 ) 104.6 Gain on sale of assets to unconsolidated subsidiary — (157.4 ) — — (157.4 ) — (157.4 ) Other operating items - (income) expense 0.1 9.3 (0.1 ) — 9.3 0.1 9.4 Equity in earnings of unconsolidated subsidiary — — — — — 0.9 0.9 Income (loss) from operations $ 204.8 $ 132.6 $ 7.5 $ (99.9 ) $ 245.0 $ (6.6 ) $ 238.4 2016 Revenue $ 827.5 $ 1,015.7 $ — $ — $ 1,843.2 $ — $ 1,843.2 Operating expenses: Direct operating costs (excluding items below) 222.4 557.3 — — 779.7 — 779.7 Depreciation and amortization 115.0 282.6 — 5.3 402.9 — 402.9 Selling, general and administrative — — — 102.2 102.2 — 102.2 Other operating items - expense 0.1 40.9 — 0.6 41.6 — 41.6 Income (loss) from operations $ 490.0 $ 134.9 $ — $ (108.1 ) $ 516.8 $ — $ 516.8 Years ended December 31, 2018 2017 2016 Capital expenditures: (In millions) Deepwater $ 16.7 $ 8.3 $ 31.5 Jack-ups 145.8 86.4 84.3 Unallocated and other 6.7 5.9 1.8 Total $ 169.2 $ 100.6 $ 117.6 In January 2018, the Company completed the cash purchase of two rigs, for which a deposit was made in 2017 (See Note 17 ). Assets Not all assets are associated with specific segments. Those assets specific to segments include receivables, certain identified property, plant and equipment (including rigs), investment in unconsolidated subsidiary and note receivable from unconsolidated subsidiary. The remaining assets, such as cash and equivalents, are considered to be shared among the segments and therefore reported in Unallocated and other. December 31, 2018 2017 Total assets: (In millions) Deepwater $ 2,757.9 $ 2,857.6 Jack-ups 4,153.8 4,173.7 Unallocated and other 1,206.0 1,427.0 Total $ 8,117.7 $ 8,458.3 |
Revenues and long-lived assets by geographic area | Years ended December 31, 2018 2017 2016 Deepwater Revenue: United States $ 157.0 $ 465.5 $ 823.7 Other (1) 1.1 2.4 3.8 Total $ 158.1 $ 467.9 $ 827.5 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. Years ended December 31, 2018 2017 2016 Jack-ups Revenue: Saudi Arabia $ 319.9 $ 383.2 $ 363.9 Trinidad 115.4 127.0 130.4 Norway 86.5 193.8 312.6 United Kingdom 74.0 58.2 120.6 United States 31.0 45.2 29.1 Other (1) 6.1 0.1 59.1 Total $ 632.9 $ 807.5 $ 1,015.7 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. Years ended December 31, 2018 2017 2016 Unallocated and Other Revenue: Saudi Arabia $ 33.8 $ 7.4 $ — Total $ 33.8 $ 7.4 $ — Revenue from Unallocated and other consists of transition services for ARO. Fees for these related services are recognized as the service is performed and such fees are billed on a monthly basis. The classifications of long-lived assets among geographic areas in the table which follows (in millions) were determined based on the physical location of assets at the end of the periods presented below: December 31, 2018 2017 (In millions) Long-lived assets: United States $ 3,141.3 $ 3,065.6 Norway 810.8 862.8 Saudi Arabia 717.8 633.9 Trinidad 667.0 599.5 United Kingdom 328.3 1,067.2 Other (1) 577.0 354.6 Total $ 6,242.2 $ 6,583.6 (1) Other represents countries in which the Company operates that individually had revenue and long-lived assets representing less than 10% of total revenue or long-lived assets. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Noncash investing and financing activities | Non-cash investing and financing activities and other supplemental cash flow information follows (in millions): 2018 2017 2016 Accrued but unpaid additions to property and equipment at December 31 $ 42.2 $ 21.4 $ 21.0 Cash interest payments 153.9 150.2 159.2 Income tax payments (refunds), net 33.1 30.0 38.1 |
GUARANTEES OF REGISTERED SECU_2
GUARANTEES OF REGISTERED SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantor Financial Statements | Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 4.9 $ 824.8 $ (4.9 ) $ 824.8 COSTS AND EXPENSES: Direct operating costs (excluding items below) — — 682.7 — 682.7 Depreciation and amortization — — 388.9 — 388.9 Selling, general and administrative 25.7 0.6 74.7 (4.9 ) 96.1 Gain on sale of assets to unconsolidated subsidiary — — (65.8 ) — (65.8 ) Loss on disposals of property and equipment — 3.7 8.4 — 12.1 Merger and related costs 8.9 — — — 8.9 Total costs and expenses 34.6 4.3 1,088.9 (4.9 ) 1,122.9 Equity in earnings of unconsolidated subsidiary — — 10.3 — 10.3 INCOME (LOSS) FROM OPERATIONS (34.6 ) 0.6 (253.8 ) — (287.8 ) OTHER INCOME (EXPENSE): Interest expense — (151.0 ) (7.2 ) 1.9 (156.3 ) Interest income — 3.7 31.3 (1.9 ) 33.1 Other - net 4.9 (1.7 ) 8.8 — 12.0 Total other income (expense) - net 4.9 (149.0 ) 32.9 — (111.2 ) LOSS BEFORE INCOME TAXES (29.7 ) (148.4 ) (220.9 ) — (399.0 ) Provision (benefit) for income taxes — (87.6 ) 36.0 — (51.6 ) Equity in earnings (losses) of consolidated subsidiaries, net of tax (317.7 ) 162.7 — 155.0 — NET INCOME (LOSS) $ (347.4 ) $ 101.9 $ (256.9 ) $ 155.0 $ (347.4 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 48.7 $ 1,283.2 $ (49.1 ) $ 1,282.8 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 0.5 727.5 (43.0 ) 685.0 Depreciation and amortization — 18.3 385.4 — 403.7 Selling, general and administrative 29.2 0.2 81.3 (6.1 ) 104.6 Gain on sale of assets to unconsolidated subsidiary — — (157.4 ) — (157.4 ) Loss on disposals of property and equipment — 1.7 7.7 — 9.4 Total costs and expenses 29.2 20.7 1,044.5 (49.1 ) 1,045.3 Equity in earnings of unconsolidated subsidiary — — 0.9 — 0.9 INCOME (LOSS) FROM OPERATIONS (29.2 ) 28.0 239.6 — 238.4 OTHER INCOME (EXPENSE): Interest expense — (155.8 ) (0.5 ) 0.6 (155.7 ) Interest income — 3.6 12.4 (0.6 ) 15.4 Gain on extinguishment of debt — 1.7 — — 1.7 Other - net 20.4 (20.7 ) (0.2 ) — (0.5 ) Total other income (expense) - net 20.4 (171.2 ) 11.7 — (139.1 ) INCOME (LOSS) BEFORE INCOME TAXES (8.8 ) (143.2 ) 251.3 — 99.3 Provision (benefit) for income taxes — (8.2 ) 34.8 — 26.6 Equity in earnings of consolidated subsidiaries, net of tax 81.5 209.4 — (290.9 ) — NET INCOME $ 72.7 $ 74.4 $ 216.5 $ (290.9 ) $ 72.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Operations Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated REVENUE $ — $ 40.4 $ 1,836.9 $ (34.1 ) $ 1,843.2 COSTS AND EXPENSES: Direct operating costs (excluding items below) — 12.4 796.4 (29.1 ) 779.7 Depreciation and amortization — 19.2 382.7 1.0 402.9 Selling, general and administrative 28.5 5.5 74.2 (6.0 ) 102.2 Loss on disposals of property and equipment — 0.9 7.8 — 8.7 Material charges and other operating items — — 32.9 — 32.9 Total costs and expenses 28.5 38.0 1,294.0 (34.1 ) 1,326.4 INCOME (LOSS) FROM OPERATIONS (28.5 ) 2.4 542.9 — 516.8 OTHER INCOME (EXPENSE): Interest expense — (155.5 ) (4.1 ) 4.1 (155.5 ) Interest income — 5.1 2.8 (4.1 ) 3.8 Loss on extinguishment of debt — (31.2 ) — — (31.2 ) Other - net 21.2 (20.9 ) (8.6 ) — (8.3 ) Total other income (expense) - net 21.2 (202.5 ) (9.9 ) — (191.2 ) INCOME (LOSS) BEFORE INCOME TAXES (7.3 ) (200.1 ) 533.0 — 325.6 Provision (benefit) for income taxes — 5.1 (6.7 ) 6.6 5.0 Equity in earnings of consolidated subsidiaries, net of tax 327.9 7.8 — (335.7 ) — NET INCOME (LOSS) $ 320.6 $ (197.4 ) $ 539.7 $ (342.3 ) $ 320.6 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ (347.4 ) $ 101.9 $ (256.9 ) $ 155.0 $ (347.4 ) OTHER COMPREHENSIVE LOSS: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (17.9 ) (17.9 ) — 17.9 (17.9 ) Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes (5.6 ) (5.6 ) — 5.6 (5.6 ) (23.5 ) (23.5 ) — 23.5 (23.5 ) COMPREHENSIVE INCOME (LOSS) $ (370.9 ) $ 78.4 $ (256.9 ) $ 178.5 $ (370.9 ) Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME $ 72.7 $ 74.4 $ 216.5 $ (290.9 ) $ 72.7 OTHER COMPREHENSIVE LOSS: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (33.3 ) (33.3 ) — 33.3 (33.3 ) Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit cost, net of income taxes 11.4 11.4 — (11.4 ) 11.4 (21.9 ) (21.9 ) — 21.9 (21.9 ) COMPREHENSIVE INCOME $ 50.8 $ 52.5 $ 216.5 $ (269.0 ) $ 50.8 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Loss) Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET INCOME (LOSS) $ 320.6 $ (197.4 ) $ 539.7 $ (342.3 ) $ 320.6 OTHER COMPREHENSIVE INCOME: Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income (loss), net of income taxes (5.1 ) (5.1 ) — 5.1 (5.1 ) Net reclassification adjustment for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes 7.4 7.4 — (7.4 ) 7.4 2.3 2.3 — (2.3 ) 2.3 COMPREHENSIVE INCOME (LOSS) $ 322.9 $ (195.1 ) $ 539.7 $ (344.6 ) $ 322.9 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 2.5 $ 324.6 $ 699.6 $ — $ 1,026.7 Receivables - trade and other 0.2 2.6 248.4 — 251.2 Prepaid expenses and other current assets 0.4 8.3 13.7 — 22.4 Total current assets 3.1 335.5 961.7 — 1,300.3 Property and equipment - gross — 247.3 8,405.1 — 8,652.4 Less accumulated depreciation and amortization — 138.0 2,313.4 — 2,451.4 Property and equipment - net — 109.3 6,091.7 — 6,201.0 Investments in consolidated subsidiaries 5,068.3 1,596.4 — (6,664.7 ) — Due from affiliates 0.1 5,357.4 14.1 (5,371.6 ) — Long-term note receivable from unconsolidated subsidiary — — 456.0 — 456.0 Investment in unconsolidated subsidiary — — 41.2 — 41.2 Other assets — 109.6 9.6 — 119.2 $ 5,071.5 $ 7,508.2 $ 7,574.3 $ (12,036.3 ) $ 8,117.7 CURRENT LIABILITIES: Current portion of long-term debt $ — $ 201.2 $ — $ — $ 201.2 Accounts payable - trade 4.3 10.2 107.8 — 122.3 Deferred revenue — — 16.7 — 16.7 Accrued liabilities 1.2 76.5 35.7 — 113.4 Total current liabilities 5.5 287.9 160.2 — 453.6 Long-term debt — 2,309.7 — — 2,309.7 Due to affiliates 28.7 8.6 5,334.3 (5,371.6 ) — Other liabilities 2.3 264.3 41.1 — 307.7 Deferred income taxes - net — — 11.7 — 11.7 Shareholders' equity 5,035.0 4,637.7 2,027.0 (6,664.7 ) 5,035.0 $ 5,071.5 $ 7,508.2 $ 7,574.3 $ (12,036.3 ) $ 8,117.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Balance Sheets December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated CURRENT ASSETS: Cash and cash equivalents $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Receivables - trade and other — 1.2 211.6 — 212.8 Prepaid expenses and other current assets 0.3 10.7 4.5 — 15.5 Total current assets 0.5 218.2 1,341.7 — 1,560.4 Property and equipment - gross — 241.9 8,592.0 — 8,833.9 Less accumulated depreciation and amortization — 121.4 2,159.8 — 2,281.2 Property and equipment - net — 120.5 6,432.2 — 6,552.7 Investments in consolidated subsidiaries 5,401.1 6,387.1 — (11,788.2 ) — Due from affiliates 0.2 680.0 11.5 (691.7 ) — Long-term note receivable from unconsolidated subsidiary — — 270.2 — 270.2 Investment in unconsolidated subsidiary — — 30.9 — 30.9 Other assets — 36.4 7.7 — 44.1 $ 5,401.8 $ 7,442.2 $ 8,094.2 $ (12,479.9 ) $ 8,458.3 CURRENT LIABILITIES: Accounts payable - trade $ 0.7 $ 12.9 $ 83.6 $ — $ 97.2 Deferred revenue — — 1.1 — 1.1 Accrued liabilities — 95.7 63.4 — 159.1 Total current liabilities 0.7 108.6 148.1 — 257.4 Long-term debt, less current portion — 2,510.3 — — 2,510.3 Due to affiliates 11.2 11.4 669.1 (691.7 ) — Other liabilities 3.8 261.2 28.6 — 293.6 Deferred income taxes - net — — 10.9 — 10.9 Shareholders' equity 5,386.1 4,550.7 7,237.5 (11,788.2 ) 5,386.1 $ 5,401.8 $ 7,442.2 $ 8,094.2 $ (12,479.9 ) $ 8,458.3 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2018 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (11.6 ) $ (139.6 ) $ 41.1 $ (50.0 ) $ (160.1 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (12.1 ) (157.1 ) — (169.2 ) Purchase of rigs — — (70.8 ) — (70.8 ) Contributions to unconsolidated subsidiary for note receivable — — (271.3 ) — (271.3 ) Proceeds from sale of assets to unconsolidated subsidiary — — 266.0 — 266.0 Repayments of note receivable from unconsolidated subsidiary — — 98.5 — 98.5 Proceeds from disposals of property and equipment — 1.4 11.3 — 12.7 Contributions to consolidated subsidiary for note receivable — (6.9 ) — 6.9 — Collections on note receivable from consolidated subsidiary — 1.9 — (1.9 ) — Investments in consolidated subsidiaries — (5.0 ) — 5.0 — Net cash used in investing activities — (20.7 ) (123.4 ) 10.0 (134.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates 14.0 278.6 (292.6 ) — — Contributions from issuer — — 5.0 (5.0 ) — Proceeds from borrowings 5.0 — 1.9 (6.9 ) — Reductions of long-term debt — — (1.9 ) 1.9 — Dividends paid — — (50.0 ) 50.0 — Debt issue costs — — (6.1 ) — (6.1 ) Proceeds from exercise of share options 0.1 — — — 0.1 Shares repurchased for tax withholdings on vesting of restricted share units (5.2 ) — — — (5.2 ) Net cash provided by (used in) financing activities 13.9 278.6 (343.7 ) 40.0 (11.2 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2.3 118.3 (426.0 ) — (305.4 ) CASH AND CASH EQUIVALENTS, 0.2 206.3 1,125.6 — 1,332.1 CASH AND CASH EQUIVALENTS, $ 2.5 $ 324.6 $ 699.6 $ — $ 1,026.7 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2017 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATIING ACTIVITIES $ (10.0 ) $ (11.3 ) $ 336.2 $ (15.1 ) $ 299.8 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (18.3 ) (82.3 ) — (100.6 ) Deposit on purchase of rigs — — (7.7 ) — (7.7 ) Investment in unconsolidated subsidiary — — (30.0 ) — (30.0 ) Contributions to unconsolidated subsidiary for note receivable — — (357.7 ) — (357.7 ) Proceeds from sale of assets to unconsolidated subsidiary — — 357.7 — 357.7 Repayments of note receivable from unconsolidated subsidiary — — 87.5 — 87.5 Proceeds from disposals of property and equipment — 1.0 2.3 — 3.3 Investments in consolidated subsidiaries — 32.6 — (32.6 ) — Net cash provided by (used in) investing activities — 15.3 (30.2 ) (32.6 ) (47.5 ) CASH FLOWS FROM FINANCING ACTIVITES: Advances (to) from affiliates 12.2 (159.7 ) 147.5 — — Distributions to issuer — — (32.6 ) 32.6 — Reductions of long-term debt — (170.0 ) — — (170.0 ) Dividends paid — — (15.1 ) 15.1 — Shares repurchased for tax withholdings on vesting of restricted share units (5.7 ) — — — (5.7 ) Net cash provided by (used in) financing activities 6.5 (329.7 ) 99.8 47.7 (175.7 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3.5 ) (325.7 ) 405.8 — 76.6 CASH AND CASH EQUIVALENTS, 3.7 532.0 719.8 — 1,255.5 CASH AND CASH EQUIVALENTS, $ 0.2 $ 206.3 $ 1,125.6 $ — $ 1,332.1 Rowan Companies plc and Subsidiaries Condensed Consolidating Statements of Cash Flows Year ended December 31, 2016 (In millions) Rowan plc (Parent) RCI (Issuer) Non-guarantor subsidiaries Consolidating adjustments Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (6.4 ) $ (58.8 ) $ 1,101.3 $ (106.5 ) $ 929.6 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — (44.5 ) (73.1 ) — (117.6 ) Proceeds from disposals of property and equipment — 0.4 5.8 — 6.2 Collections on note receivable from consolidated subsidiary — 689.7 — (689.7 ) — Investments in consolidated subsidiaries (0.2 ) (80.6 ) — 80.8 — Net cash provided by (used in) investing activities (0.2 ) 565.0 (67.3 ) (608.9 ) (111.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Advances (to) from affiliates (2.0 ) 58.2 (53.0 ) (3.2 ) — Contributions from parent/issuer — — 80.8 (80.8 ) — Proceeds from borrowings — 500.0 — — 500.0 Reductions of long-term debt — (511.8 ) (689.7 ) 689.7 (511.8 ) Payment of debt extinguishment costs — (24.0 ) — — (24.0 ) Dividends paid — — (109.7 ) 109.7 — Debt issue costs — (8.7 ) — — (8.7 ) Shares repurchased for tax withholdings on vesting of restricted share units (5.0 ) — — — (5.0 ) Excess tax benefits from share-based compensation — 2.6 — — 2.6 Net cash provided by (used in) financing activities (7.0 ) 16.3 (771.6 ) 715.4 (46.9 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13.6 ) 522.5 262.4 — 771.3 CASH AND CASH EQUIVALENTS, 17.3 9.5 457.4 — 484.2 CASH AND CASH EQUIVALENTS, $ 3.7 $ 532.0 $ 719.8 $ — $ 1,255.5 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions | Jan. 28, 2019$ / shares | May 23, 2016USD ($) | May 22, 2016USD ($) | Jun. 30, 2018USD ($)$ / d | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017 | Oct. 16, 2017segment | Dec. 31, 2018USD ($)drilling_unitsegment | Dec. 31, 2017USD ($)$ / d | Dec. 31, 2016$ / bbl | Sep. 15, 2016USD ($)$ / d |
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of operating segments | segment | 2 | 3 | |||||||||||
Number of Drillships | drilling_unit | 4 | ||||||||||||
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit | 21 | ||||||||||||
Deferred revenue | $ 16.7 | $ 1.1 | |||||||||||
Less: amortization | $ 16.8 | ||||||||||||
Rowan Relentless [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenue, canceled contract value | $ 130.9 | ||||||||||||
Contingent payments, period of evaluation | 12 months | 12 months | |||||||||||
Revenue | $ 30.5 | 173.2 | |||||||||||
Revenue, fair value of derivative associated with early contract termination agreement | 6.2 | ||||||||||||
Less: amortization | $ 5.6 | ||||||||||||
Outstanding Receivables From Early Contract Termination [Member] | Rowan Relentless [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Outstanding receivables from early termination of contract | $ 215 | ||||||||||||
Contingent Consideration Threshold 1 [Member] | Rowan Relentless [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Additional contingent payments | 10 | ||||||||||||
Contingent payment, threshold price per barrel (in USD per bbl) | $ / bbl | 50 | ||||||||||||
Contingent Consideration Threshold 2 [Member] | Rowan Relentless [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Additional contingent payments | $ 20 | ||||||||||||
Contingent payment, threshold price per barrel (in USD per bbl) | $ / bbl | 65 | ||||||||||||
Saudi Arabia Joint Venture [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit | 7 | ||||||||||||
Period Of Joint Venture Funding Of Drilling Rigs | 10 years | ||||||||||||
Anadarko [Member] | Rowan Resolute [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenue, canceled contract value | $ 27.8 | ||||||||||||
Day rate (in USD per day) | $ / d | 418,400 | ||||||||||||
Cobalt International [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Exclusive provider contract term (in years) | 5 years | ||||||||||||
Cobalt International [Member] | Rowan Reliance [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Day rate (in USD per day) | $ / d | 582,000 | ||||||||||||
Outstanding receivables from early termination of contract | $ 95.9 | ||||||||||||
Day rate, after March 31, 2017 (in USD per day) | $ / d | 262,000 | ||||||||||||
Cobalt International [Member] | Outstanding Receivables From Early Contract Termination [Member] | Rowan Reliance [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Outstanding receivables from early termination contract, cash received in period | $ 19.6 | $ 76.3 | |||||||||||
Deferred Revenue [Domain] | Cobalt International [Member] | Rowan Reliance [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Deferred revenue | $ 95.9 | ||||||||||||
Rowan Companies plc (Parent) [Member] | Saudi Arabia Joint Venture [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||
Ensco [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Business Combination, Termination fee due to other merge transaction | $ 24 | ||||||||||||
Rowan [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Business Combination, Termination fee due to other merge transaction | $ 24 | ||||||||||||
Subsequent Event [Member] | Ensco [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Shares Received after Merger | $ / shares | $ 2.750 | ||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.10 | ||||||||||||
Maximum [Member] | Saudi Arabia Joint Venture [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Number Of Drilling Rigs To Be Purchased By Joint Venture | drilling_unit | 20 |
NATURE OF OPERATIONS AND BASI_3
NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Joint Venture (Details) $ in Millions | Oct. 01, 2018USD ($)drilling_unit | Oct. 17, 2017USD ($)drilling_unit | May 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated subsidiary | $ 0 | $ (30) | $ 0 | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 98.5 | 87.5 | ||||
Due from Joint Venture, Total | $ 456 | $ 271.3 | ||||
Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Aggregate contract duration for contributed rigs (in years) | 15 years | |||||
Frequency of driling rig contract repricing (in years) | 3 years | |||||
Rowan Companies plc (Parent) [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Investment in unconsolidated subsidiary | $ (25) | |||||
Transaction Costs | $ 5 | |||||
Initial Number Of Rigs Contributed To Joint Venture | drilling_unit | 2 | 3 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 95.3 | $ 88 | ||||
Additional Number Of Rigs Expected To Be Contributed To Joint Venture | drilling_unit | 2 | |||||
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 88 | |||||
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Initial Number Of Rigs Contributed To Joint Venture | drilling_unit | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Depreciation and Impairments (Details) $ in Millions | Sep. 30, 2016drilling_unit | Sep. 30, 2015drilling_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)drilling_unit | Sep. 29, 2016USD ($) |
Property, Plant and Equipment [Line Items] | ||||||
Property value | $ 6,201 | $ 6,552.7 | ||||
Asset impairment charges | $ 0 | 0 | $ 34.3 | |||
Jack-up Rigs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of drilling units impaired | drilling_unit | 5 | 10 | 5 | |||
Asset impairment charges | $ 34.3 | |||||
Jack-up drilling rigs: Hulls [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Jack-up drilling rigs: Legs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Jack-up drilling rigs: Quarters [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Life (in years) | 25 years | |||||
Jack-up Rigs: Impaired [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property value | 43.6 | $ 43.6 | ||||
Drillships: Hulls [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Life (in years) | 35 years | |||||
Drill pipe and tubular equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Life (in years) | 4 years | |||||
Minimum [Member] | Jack-up drilling rigs: Hulls [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 25 years | |||||
Minimum [Member] | Jack-up drilling rigs: Legs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 25 years | |||||
Minimum [Member] | Jack-up drilling rigs: Drilling equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 0.00% | |||||
Life (in years) | 2 years | |||||
Minimum [Member] | Drillships: Drilling equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 0.00% | |||||
Life (in years) | 2 years | |||||
Minimum [Member] | Other property and equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 3 years | |||||
Maximum [Member] | Jack-up drilling rigs: Hulls [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 35 years | |||||
Maximum [Member] | Jack-up drilling rigs: Legs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 30 years | |||||
Maximum [Member] | Jack-up drilling rigs: Drilling equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Life (in years) | 25 years | |||||
Maximum [Member] | Drillships: Drilling equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Salvage Value | 10.00% | |||||
Life (in years) | 25 years | |||||
Maximum [Member] | Other property and equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Life (in years) | 30 years | |||||
Material Charges and Other Operating Items [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Asset impairment charges | $ 0 | 0 | ||||
Material Charges and Other Operating Items [Member] | Jack-up Rigs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Asset impairment charges | 34.3 | |||||
Maintenance [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cost of Goods and Services Sold | $ 139 | $ 113 | $ 118 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period from grant date to retirement eligibility, threshold basis for amortization period of share based compensation cost | 6 months |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-employee director award, maximum service period (in years) | 1 year |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 6 months |
Restricted Shares And Restricted Share Units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 36 months |
Performance Shares [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Currency Transactions [Line Items] | |||
Foreign currency transaction losses | $ 3.4 | $ 0.4 | $ 9.7 |
Egypt, Pounds [Member] | |||
Foreign Currency Transactions [Line Items] | |||
Egyptian pounds held | 1.7 | 2.8 | |
Angola, Kwanza | |||
Foreign Currency Transactions [Line Items] | |||
Egyptian pounds held | 2 | 4.3 | |
Other Assets [Member] | Egypt, Pounds [Member] | |||
Foreign Currency Transactions [Line Items] | |||
Other assets | 0.7 | 2.2 | |
Other Assets [Member] | Angola, Kwanza | |||
Foreign Currency Transactions [Line Items] | |||
Other assets | $ 1.7 | $ 4.3 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of income (loss) from continuing operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Income (loss) from continuing operations | $ (347.4) | $ 72.7 | $ 320.6 |
Income from continuing operations allocated to non-vested share awards | 0 | 0.1 | 1.5 |
Income (loss) from continuing operations available to shareholders | $ (347.4) | $ 72.8 | $ 322.1 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Average common shares outstanding | 126.9 | 126.1 | 125.3 |
Effect of dilutive securities - share-based compensation (in shares) | 0 | 1.6 | 1 |
Average shares for diluted computations | 126.9 | 127.7 | 126.3 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Antidilutive Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares | 7.1 | 3.6 | 2.5 |
Share options and appreciation rights | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares | 1.4 | 1.5 | 1.6 |
Restricted Shares And Restricted Share Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares | 5.7 | 2.1 | 0.9 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue and Expense Recognition, Accounts Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 18 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 5,500,000 | $ 206,600,000 | ||||
Other | 8,100,000 | 1,500,000 | $ 3,700,000 | |||
REVENUE | 824,800,000 | 1,282,800,000 | $ 1,843,200,000 | |||
Allowance for Doubtful Accounts Receivable | 0 | 0 | ||||
Receivables - Trade and Other | ||||||
Trade | 231,700,000 | 195,800,000 | ||||
Income tax | 12,000,000 | 8,000,000 | ||||
Other | 7,500,000 | 9,000,000 | ||||
Total receivables - trade and other | 251,200,000 | 212,800,000 | ||||
Retained Earnings [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 51,100,000 | $ 206,600,000 | ||||
Accounting Standards Update 2014-09 [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other | $ 5,500,000 | |||||
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 5,500,000 | |||||
Demobilization [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
REVENUE | $ 5,500,000 | |||||
Scenario, Forecast [Member] | Demobilization [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
REVENUE | $ 5,900,000 | $ 11,400,000 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Policies (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 5.5 | $ 206.6 |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 51.1 | $ 206.6 |
Retained Earnings [Member] | Accounting Standards Update 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 45.6 | |
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 20 | |
Operating Lease, Liability | 20 | |
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 10 | |
Operating Lease, Liability | $ 10 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs [Abstract] | |||
Contract assets | $ 9.1 | $ 2.8 | |
Contract Liabilities [Abstract] | |||
Contract liabilities, current | 16.7 | 1.1 | |
Contract liabilities | $ 1.6 | 35.8 | 1.6 |
Movement in Deferred Costs [Roll Forward] | |||
Beginning balance | 2.8 | ||
Plus: contractual additions | 8.9 | ||
Less: amortization | 8.1 | ||
Ending balance | 3.6 | ||
Demobilization Revenue [Roll Forward] | |||
Beginning balance | 0 | ||
Plus: contractual additions | 5.5 | ||
Ending balance | 5.5 | ||
Movement in Deferred Revenue [Roll Forward] | |||
Beginning balance | 1.6 | ||
Plus: contractual additions (1) | 51 | ||
Less: amortization | 16.8 | ||
Ending balance | 35.8 | ||
Capex [Member] | |||
Movement in Deferred Revenue [Roll Forward] | |||
Plus: contractual additions (1) | 28.6 | ||
Prepaid Expenses and Other Current Assets [Member] | |||
Deferred Costs [Abstract] | |||
Contract assets, current | 8.7 | 2.8 | |
Other Assets [Member] | |||
Deferred Costs [Abstract] | |||
Contract assets, Non-current | 0.4 | 0 | |
Deferred Revenue [Member] | |||
Contract Liabilities [Abstract] | |||
Contract liabilities, current | 16.7 | 1.1 | |
Other Noncurrent Liabilities [Member] | |||
Contract Liabilities [Abstract] | |||
Contract Liabilities, noncurrent | $ 19.1 | $ 0.5 | |
Accounts Receivable [Member] | |||
Movement in Deferred Revenue [Roll Forward] | |||
Plus: contractual additions (1) | $ 28.6 |
CONTRACT ASSETS AND CONTRACT _4
CONTRACT ASSETS AND CONTRACT LIABILITIES Revenue From Contract with Customer (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Amount | $ 16.7 |
Capitalized Contract Cost, Net, Noncurrent | $ 3.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Amount | $ 9.6 |
Capitalized Contract Cost, Net, Noncurrent | $ 0.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Amount | $ 8.5 |
Capitalized Contract Cost, Net, Noncurrent | $ 0.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Amount | $ 1 |
Capitalized Contract Cost, Net, Noncurrent | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 35.8 |
Capitalized Contract Cost, Net | $ 3.6 |
EQUITY METHOD INVESTMENTS AND_3
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Revenue | $ 348.8 | $ 48.6 | |
Direct operating costs (excluding items below) | 194 | 22.2 | |
Depreciation and amortization | 67.4 | 12.9 | |
Selling, general and administrative | 27 | 6.1 | |
(Gain) loss on disposals of property and equipment | 1.4 | (0.1) | |
Income from Operations | 59 | 7.5 | |
Interest expense | (26.2) | (4.2) | |
Provision for income taxes | 12.3 | 1.6 | |
Net Income | 20.5 | 1.7 | |
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | $ 0 |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Current assets | 348.9 | 108.6 | |
Non-current assets | 727 | 459.7 | |
Total assets | 1,075.9 | 568.3 | |
Current liabilities | 112.2 | 29.2 | |
Non-current liabilities | 949.1 | 545.1 | |
Total liabilities | $ 1,061.3 | 574.3 | |
Rowan Companies plc (Parent) [Member] | Saudi Arabia Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Equity in earnings of unconsolidated subsidiary | $ 10.3 | $ 0.9 | |
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% |
EQUITY METHOD INVESTMENTS AND_4
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES - RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Oct. 17, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||||
Due from Joint Ventures, Current | $ 1.1 | $ 0 | $ 1.1 | |||
Interest income | 33.1 | 15.4 | $ 3.8 | |||
shareholder note receivable, related party [Abstract] | ||||||
Beginning Balance January 1, | 270.2 | 0 | ||||
Origination | 357.7 | 271.3 | 357.7 | |||
Repayments (2) | (98.5) | (87.5) | ||||
Interest in kind | 12 | 0 | 0 | |||
Other | 1.1 | 1 | 1.1 | |||
Total | 271.3 | 456 | 271.3 | |||
Less: Current Portion (1) | 1.1 | 0 | 1.1 | |||
Ending Balance December 31, | 270.2 | 456 | 270.2 | 0 | ||
Revenue from Related Parties | 119.1 | 17.1 | ||||
Gain (loss) on disposals of property and equipment | 12.1 | 9.4 | 8.7 | |||
Proceeds from disposals of property and equipment | 12.7 | 3.3 | $ 6.2 | |||
Reduction in expenses [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 1.3 | 1.3 | ||||
Reduction in Prepaid Expenses [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 0.3 | 0.3 | ||||
Rig Management Services [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Costs and Expenses, Related Party | 33.5 | 7.8 | ||||
Purchase of Supplies from Joint Venture [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Costs and Expenses, Related Party | 4.4 | 0.6 | ||||
Secondment Revenue [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Revenue from Related Parties | 55.9 | 9.2 | ||||
Lease Revenue [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Revenue from Related Parties | 24.4 | 0 | ||||
Transition Services Revenue [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Revenue from Related Parties | 33.8 | 7.4 | ||||
Sales of Supplies [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Revenue from Related Parties | 5 | 0.5 | ||||
Reimbursement of Preparation Costs [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 1.6 | 0 | 1.6 | |||
Sale of Equipment [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 1 | 10.8 | 1 | |||
ARO Drilling [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Gain (loss) on disposals of property and equipment | 1.2 | 0 | ||||
Proceeds from disposals of property and equipment | 10.8 | 1 | ||||
Purchase of Equipment from Joint Venture [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 6.4 | |||||
Costs and Expenses, Related Party | 2.4 | 1.5 | ||||
Saudi Arabia Joint Venture [Member] | Rowan Companies plc (Parent) [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 12.9 | 2.1 | ||||
shareholder note receivable, related party [Abstract] | ||||||
Repayments (2) | $ (95.3) | $ (88) | ||||
Accounts Receivable, Related Parties | 17.3 | 68.8 | 17.3 | |||
Accounts Payable, Related Parties | 10.8 | 6.1 | 10.8 | |||
Accounts Receivable [Member] | Reimbursement of Preparation Costs [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Parties Amount in Cost of Sales | 1.6 | 1.6 | ||||
Accounts Receivable [Member] | ARO Drilling [Member] | ||||||
shareholder note receivable, related party [Abstract] | ||||||
Related Party Transaction, Due from (to) Related Party, Current | $ 1 | $ 3.5 | $ 1 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Loans Receivable, Basis Spread on Variable Rate | 2.00% |
EQUITY METHOD INVESTMENTS AND_5
EQUITY METHOD INVESTMENTS AND VARIABLE INTEREST ENTITIES - VARIABLE INTEREST ENTITIES (Details) - Rowan Companies plc (Parent) [Member] - Saudi Arabia Joint Venture [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 566 | $ 319.5 |
Total liabilities | 6.1 | 10.8 |
Maximum exposure to loss | $ 559.9 | $ 308.7 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Pension and other postretirement benefits | $ 16.8 | $ 27 |
Compensation and related employee costs | 45 | 69 |
Interest | 34 | 32 |
Income taxes | 7.1 | 15.4 |
Other | 10.5 | 15.7 |
Total accrued liabilities | $ 113.4 | $ 159.1 |
LONG-TERM DEBT - Schedule of Ma
LONG-TERM DEBT - Schedule of Maturities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 201.4 |
2,020 | 0 |
2,021 | 0 |
2,022 | 620.8 |
2,023 | 0 |
Thereafter | 1,698.1 |
Long-term debt, principal amount | $ 2,520.3 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Feb. 08, 2017 | Jan. 03, 2017 | Dec. 19, 2016 | Jul. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 09, 2017 |
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 2,510,900,000 | $ 2,510,300,000 | ||||||||||
Current portion of long-term debt | 201,200,000 | 0 | ||||||||||
Long-term debt | 2,309,700,000 | 2,510,300,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Letters of credit outstanding | 9,100,000 | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
(Gain) loss on extinguishment of debt | 0 | (1,700,000) | $ 31,200,000 | |||||||||
Proceeds from borrowings | 0 | 0 | 500,000,000 | |||||||||
Long-term debt, principal amount | $ 2,520,300,000 | |||||||||||
RCI [Member] | ||||||||||||
Debt Reductions [Abstract] | ||||||||||||
Subsidiary ownership percentage by parent | 100.00% | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Reductions [Abstract] | ||||||||||||
Cash payment to retire long-term debt | $ 32,800,000 | $ 490,500,000 | ||||||||||
Aggregate principal amount extinguished | 34,600,000 | 463,900,000 | ||||||||||
(Gain) loss on extinguishment of debt | $ (2,000,000) | $ 33,600,000 | 33,600,000 | |||||||||
Debt instrument, face amount of tender offer | 750,000,000 | $ 750,000,000 | ||||||||||
Debt extinguishment costs | 5,900,000 | |||||||||||
Debt extinguishment costs, expensed | 5,300,000 | |||||||||||
Redemption amount as percentage of principal | 100.00% | |||||||||||
Senior Notes [Member] | Senior Note Payable Due 2017 and 2019 [Member] | ||||||||||||
Debt Reductions [Abstract] | ||||||||||||
Cash payment to retire long-term debt | $ 45,200,000 | |||||||||||
Aggregate principal amount extinguished | 47,900,000 | |||||||||||
(Gain) loss on extinguishment of debt | $ (2,400,000) | |||||||||||
Senior Notes [Member] | 7.875 % Senior Notes, due August 2019 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 201,200,000 | 200,900,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 8.00% | |||||||||||
Stated interest rate | 7.875% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Cash payment to retire long-term debt | $ 7,000,000 | |||||||||||
Aggregate principal amount extinguished | 6,500,000 | 900,000 | 186,700,000 | |||||||||
(Gain) loss on extinguishment of debt | $ 500,000 | |||||||||||
Long-term debt, principal amount | $ 201,400,000 | 201,400,000 | ||||||||||
Senior Notes [Member] | 4.875% Senior Notes, due June 2022 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 623,800,000 | 624,600,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 4.70% | |||||||||||
Stated interest rate | 4.875% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Cash payment to retire long-term debt | $ 33,500,000 | |||||||||||
Aggregate principal amount extinguished | 33,600,000 | 9,800,000 | 35,800,000 | |||||||||
(Gain) loss on extinguishment of debt | $ (2,400,000) | |||||||||||
Long-term debt, principal amount | $ 620,800,000 | 620,800,000 | ||||||||||
Senior Notes [Member] | Senior Note Payable Due September 2017 [Member] | ||||||||||||
Debt Reductions [Abstract] | ||||||||||||
Cash payment to retire long-term debt | $ 94,000,000 | |||||||||||
Aggregate principal amount extinguished | $ 100,000 | 265,500,000 | ||||||||||
(Gain) loss on extinguishment of debt | $ 2,100,000 | |||||||||||
Long-term debt, principal amount | $ 92,100,000 | |||||||||||
Senior Notes [Member] | 4.75% Senior Notes, due January 2024 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 396,300,000 | 395,900,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 4.80% | |||||||||||
Stated interest rate | 4.75% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Aggregate principal amount extinguished | $ 1,900,000 | |||||||||||
Long-term debt, principal amount | $ 398,100,000 | 398,100,000 | ||||||||||
Senior Notes [Member] | 7.375% Senior Notes, due June 2025 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 497,800,000 | 497,500,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 7.40% | |||||||||||
Stated interest rate | 7.375% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Proceeds from borrowings | $ 492,000,000 | |||||||||||
Issue amount as percentage of principal | 100.00% | |||||||||||
Redemption amount as percentage of principal | 101.00% | |||||||||||
Long-term debt, principal amount | $ 500,000,000 | $ 500,000,000 | 500,000,000 | |||||||||
Senior Notes [Member] | 5.4% Senior Notes due December 2042 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 395,300,000 | 395,100,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 5.40% | |||||||||||
Stated interest rate | 5.40% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Long-term debt, principal amount | $ 400,000,000 | 400,000,000 | ||||||||||
Senior Notes [Member] | 5.85% Senior Notes, due January 2044 [Member] | ||||||||||||
Long-term Debt, Current and Noncurrent [Abstract] | ||||||||||||
Long-term debt, carrying value | $ 396,500,000 | 396,300,000 | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Effective interest rate | 5.90% | |||||||||||
Stated interest rate | 5.85% | |||||||||||
Debt Reductions [Abstract] | ||||||||||||
Long-term debt, principal amount | $ 400,000,000 | $ 400,000,000 | ||||||||||
New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Line of Credit Facility, Letter of Credit Borrowing Capacity | 50,000,000 | |||||||||||
Borrowing capacity under the revolving credit facility | 955,000,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 948,200,000 | |||||||||||
Revolving credit facility, amount drawn | 0 | |||||||||||
Letters of credit outstanding | 6,800,000 | |||||||||||
Line of Credit Facility, Swingline Borrowing Capacity | 129,000,000 | |||||||||||
Line of Credit Facility, Restriction | $ 200,000,000 | |||||||||||
Financial Covenant [Abstract] | ||||||||||||
Line of Credit Facility, Covenant, Ratio of Indebtedness to Net Capital | 33.00% | |||||||||||
Line of Credit Facility, Covenant, Liquidity | $ 2,285,600,000 | |||||||||||
Line of Credit Facility, Covenant, Marketed Rig Value Ratio | 4.1 | |||||||||||
Line of Credit Facility, Covenant, Guaranteed Rig Value Ratio | 86.00% | |||||||||||
Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Line of Credit Facility, Letter of Credit Borrowing Capacity | $ 0 | |||||||||||
Borrowing capacity under the revolving credit facility | 310,700,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 310,700,000 | |||||||||||
Revolving credit facility, amount drawn | $ 0 | |||||||||||
Financial Covenant [Abstract] | ||||||||||||
Line of Credit Facility, Covenant, Ratio of Indebtedness to Net Capital | 33.00% | |||||||||||
Existing Revolving Credit Facility [Member] | Matures on January 23, 2019 [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Borrowing capacity under the revolving credit facility | $ 60,000,000 | |||||||||||
Existing Revolving Credit Facility [Member] | Matures on January 23, 2020 [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Borrowing capacity under the revolving credit facility | 150,700,000 | |||||||||||
Existing Revolving Credit Facility [Member] | Matures on January 23, 2021 [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Borrowing capacity under the revolving credit facility | $ 100,000,000 | |||||||||||
Minimum [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, commitment fee percentage | 0.375% | |||||||||||
Financial Covenant [Abstract] | ||||||||||||
Line of Credit Facility, Covenant, Liquidity | $ 300,000,000 | |||||||||||
Line of Credit Facility, Covenant, Marketed Rig Value Ratio | 3 | |||||||||||
Line of Credit Facility, Covenant, Guaranteed Rig Value Ratio | 80.00% | |||||||||||
Minimum [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, commitment fee percentage | 0.125% | |||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 2.75% | |||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 1.125% | |||||||||||
Minimum [Member] | Base Rate [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 1.75% | |||||||||||
Minimum [Member] | Base Rate [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 0.125% | |||||||||||
Maximum [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, commitment fee percentage | 0.70% | |||||||||||
Line of Credit Facility, Additional Borrowing Capacity | $ 250,000,000 | |||||||||||
Financial Covenant [Abstract] | ||||||||||||
Line of Credit Facility, Covenant, Ratio of Indebtedness to Net Capital | 55.00% | |||||||||||
Maximum [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, commitment fee percentage | 0.35% | |||||||||||
Financial Covenant [Abstract] | ||||||||||||
Line of Credit Facility, Covenant, Ratio of Indebtedness to Net Capital | 60.00% | |||||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 4.25% | |||||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 2.00% | |||||||||||
Maximum [Member] | Base Rate [Member] | New Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 3.25% | |||||||||||
Maximum [Member] | Base Rate [Member] | Existing Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||
Revolving credit facility, basis spread on variable rate | 1.00% |
DERIVATIVES - Derivative Reflec
DERIVATIVES - Derivative Reflected in the Balance Sheet (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 23, 2016 | |
Rowan Relentless [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Contingent payment derivative, fair value | $ 6.2 | ||||
Freeport-McMoRan [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Proceeds from contingent payment provision settlement | $ 6 | ||||
Recurring [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Contingent payment derivative, fair value | $ 0 | ||||
Other Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (0.1) | $ (0.1) |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Derivatives (Details) | May 23, 2016USD ($)$ / bbl | Jan. 31, 2017USD ($) | Jun. 30, 2017 | Dec. 31, 2016USD ($)$ / bbl | Dec. 31, 2017USD ($) |
Rowan Relentless [Member] | |||||
Derivative [Line Items] | |||||
Contingent payments, period of evaluation | 12 months | 12 months | |||
Contingent payment derivative, fair value | $ 6,200,000 | ||||
Derivative [Member] | Rowan Relentless [Member] | |||||
Derivative [Line Items] | |||||
WTI spot price (in usd per bbl) | $ / bbl | 47.48 | 53.72 | |||
Slope of the WTI forward curve | 5.50% | 11.205% | |||
Freeport-McMoRan [Member] | |||||
Derivative [Line Items] | |||||
Proceeds from contingent payment provision settlement | $ 6,000,000 | ||||
Prepaid Expenses and Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Contingent payment derivative, fair value | $ 6,100,000 | $ 0 | |||
Measurement Input, Discount Rate [Member] | Derivative [Member] | Rowan Relentless [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Measurement Input | 0.00765 | 0.00734 | |||
Measurement Input, Price Volatility [Member] | Derivative [Member] | Rowan Relentless [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Measurement Input | 0.375 | 0.28557 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) $ in Millions | Sep. 30, 2016drilling_unit | Sep. 30, 2015drilling_unit | Dec. 31, 2016USD ($)drilling_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)drilling_unit | Sep. 29, 2016USD ($) |
Estimated fair value measurements | |||||||
Asset impairment charges | $ 0 | $ 0 | $ 34.3 | ||||
Net carrying value | 6,201 | 6,552.7 | |||||
Number of drilling units sold | drilling_unit | 2 | ||||||
Proceeds from disposals of property and equipment | 12.7 | 3.3 | 6.2 | ||||
Gain (loss) on disposals of property and equipment | 12.1 | 9.4 | 8.7 | ||||
Long-term debt, carrying value | 2,510.9 | 2,510.3 | |||||
Jack-up Rigs [Member] | |||||||
Estimated fair value measurements | |||||||
Asset impairment charges | $ 34.3 | ||||||
Number of drilling units impaired | drilling_unit | 5 | 10 | 5 | ||||
Proceeds from disposals of property and equipment | $ 5 | ||||||
Gain (loss) on disposals of property and equipment | 1.2 | ||||||
Jack-up Rigs: Impaired [Member] | |||||||
Estimated fair value measurements | |||||||
Net carrying value | 43.6 | $ 43.6 | $ 43.6 | ||||
Recurring [Member] | |||||||
Estimated fair value measurements | |||||||
Assets - cash equivalents | 990.5 | 1,332.1 | |||||
Recurring [Member] | Level 1 [Member] | |||||||
Estimated fair value measurements | |||||||
Assets - cash equivalents | 990.5 | 1,332.1 | |||||
Recurring [Member] | Level 2 [Member] | |||||||
Estimated fair value measurements | |||||||
Assets - cash equivalents | 0 | 0 | |||||
Long-term debt, fair value | 1,881 | 2,262 | |||||
Recurring [Member] | Level 3 [Member] | |||||||
Estimated fair value measurements | |||||||
Assets - cash equivalents | 0 | 0 | |||||
Non-Recurring [Member] | |||||||
Estimated fair value measurements | |||||||
Property and equipment, net | 9.3 | 9.3 | |||||
Non-Recurring [Member] | Jack-up Rigs [Member] | |||||||
Estimated fair value measurements | |||||||
Property, plant and equipment, Total gains (losses) | (34.3) | ||||||
Non-Recurring [Member] | Level 1 [Member] | |||||||
Estimated fair value measurements | |||||||
Property and equipment, net | 0 | 0 | |||||
Non-Recurring [Member] | Level 2 [Member] | |||||||
Estimated fair value measurements | |||||||
Property and equipment, net | 0 | 0 | |||||
Non-Recurring [Member] | Level 3 [Member] | |||||||
Estimated fair value measurements | |||||||
Property and equipment, net | $ 9.3 | 9.3 | |||||
Material Charges and Other Operating Items [Member] | |||||||
Estimated fair value measurements | |||||||
Asset impairment charges | 0 | 0 | |||||
Material Charges and Other Operating Items [Member] | Jack-up Rigs [Member] | |||||||
Estimated fair value measurements | |||||||
Asset impairment charges | $ 34.3 | ||||||
Egypt, Pounds [Member] | Recurring [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0.7 | 2.2 | |||||
Egypt, Pounds [Member] | Recurring [Member] | Level 1 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0.7 | 2.2 | |||||
Egypt, Pounds [Member] | Recurring [Member] | Level 2 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0 | 0 | |||||
Egypt, Pounds [Member] | Recurring [Member] | Level 3 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0 | 0 | |||||
Angola, Kwanza | Recurring [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 1.7 | 4.3 | |||||
Angola, Kwanza | Recurring [Member] | Level 1 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 1.7 | 4.3 | |||||
Angola, Kwanza | Recurring [Member] | Level 2 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0 | 0 | |||||
Angola, Kwanza | Recurring [Member] | Level 3 [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0 | 0 | |||||
Other Assets [Member] | Egypt, Pounds [Member] | |||||||
Estimated fair value measurements | |||||||
Other assets | 0.7 | 2.2 | |||||
Other Assets [Member] | Angola, Kwanza | |||||||
Estimated fair value measurements | |||||||
Other assets | $ 1.7 | $ 4.3 |
FAIR VALUE MEASUREMENTS - Conce
FAIR VALUE MEASUREMENTS - Concentrations of Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 15, 2016 | |
Concentration Risk [Line Items] | ||||
Contract liabilities, current | $ 16.7 | $ 1.1 | ||
Jack-ups [Member] | Saudi Aramco [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 28.00% | 29.00% | 20.00% | |
Jack-ups [Member] | Saudi Aramco [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 21.00% | 34.00% | ||
Jack-ups [Member] | ConocoPhillips [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 2.00% | 7.00% | 11.00% | |
Jack-ups [Member] | ConocoPhillips [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 0.00% | 8.00% | ||
Jack-ups [Member] | BP Trinidad and Tobago [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 10.00% | 6.00% | 5.00% | |
Jack-ups [Member] | BP Trinidad and Tobago [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 9.00% | 6.00% | ||
Deepwater and Jack-up Segment [Member] | Freeport-McMoRan [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 1.00% | 0.00% | 12.00% | |
Deepwater and Jack-up Segment [Member] | Freeport-McMoRan [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 1.00% | 0.00% | ||
Deepwater and Jack-up Segment [Member] | Repsol [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 2.00% | 7.00% | 12.00% | |
Deepwater and Jack-up Segment [Member] | Repsol [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 4.00% | 5.00% | ||
Deepwater [Member] | Cobalt International [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 0.00% | 14.00% | 12.00% | |
Deepwater [Member] | Cobalt International [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 0.00% | 0.00% | ||
Deepwater [Member] | Anadarko [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 14.00% | 17.00% | 8.00% | |
Deepwater [Member] | Anadarko [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 0.00% | 19.00% | ||
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Customer Concentration Risk [Member] | Consolidated Revenues [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 14.00% | 1.00% | 0.00% | |
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Concentrations of Credit Risk [Abstract] | ||||
Customer concentration, percentage | 30.00% | 9.00% | ||
Rowan Reliance [Member] | Deferred Revenue [Domain] | Cobalt International [Member] | ||||
Concentration Risk [Line Items] | ||||
Contract liabilities, current | $ 95.9 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)drilling_unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense | $ 7.4 | $ 11.4 | $ 10.6 | |
Future minimum payments to be made under noncancelable operating leases [Abstract] | ||||
2,019 | 7.6 | |||
2,020 | 5.1 | |||
2,021 | 1.9 | |||
2,022 | 1.8 | |||
2,023 | 1.8 | |||
Later years | 10 | |||
Total | 28.2 | |||
Purchase obligations | 128 | |||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | 9.1 | |||
IRS proposed unfavorable tax adjustments | 85 | |||
Gross unrecognized tax benefits | 98.2 | $ 102 | $ 120.1 | $ 65.1 |
Tax impact of unrecognized tax benefits, if reversed | 35 | |||
New Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | $ 6.8 | |||
Saudi Arabia Joint Venture [Member] | ||||
Debt Instrument [Line Items] | ||||
Period Of Joint Venture Funding Of Drilling Rigs | 10 years | |||
Saudi Arabia Joint Venture [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Number Of Drilling Rigs To Be Purchased By Joint Venture | drilling_unit | 20 | |||
Contingent Funding Obligation To Equity Method Investment | $ 1,250 | |||
Number Of Drilling Rigs To Be Purchased By Each Partner in a 12 month period | drilling_unit | 3 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS (Details) - USD ($) | Feb. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grant (in shares) | 7,075,015 | |||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 24,000,000 | $ 29,000,000 | $ 34,600,000 | |||
Unrecognized compensation cost related to nonvested share-based compensation arrangements | $ 28,200,000 | |||||
Compensation expense over a remaining weighted-average period | 1 year 7 months 12 days | |||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at end of period (in dollars per share) | $ 7.04 | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.987% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 40.551% | |||||
Nonvested at end of period (in dollars per share) | $ 7.04 | |||||
Minimum [Member] | ||||||
Weighted-average grant-date fair value per share | ||||||
Requisite service period | 6 months | |||||
Non Employee Director Non-Deferred Restricted Share Units [Member] | ||||||
Number of Shares | ||||||
Outstanding, beginning of period (in shares) | 91,000 | |||||
Granted (in shares) | 78,000 | |||||
Vested / Settled (in shares) | (91,000) | |||||
Outstanding, end of period (in shares) | 78,000 | 91,000 | ||||
Vested at end of period (in shares) | 0 | |||||
Weighted-average grant-date fair value per share | ||||||
Outstanding, beginning of period (in dollars per share) | $ 13.24 | |||||
Granted (in dollars per share) | 15.29 | $ 13.24 | ||||
Vested / Settled (in dollars per share) | 13.24 | |||||
Outstanding, end of period (in dollars per share) | 15.29 | 13.24 | ||||
Vested at end of period (in dollars per share) | $ 0 | |||||
Fair value of shares of common stock issued in connection with settlement of vested RSUs | $ 1,400,000 | |||||
Granted (in dollars per share) | $ 15.29 | $ 13.24 | ||||
Restricted Shares And Restricted Share Units [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 18,000,000 | $ 19,300,000 | 21,800,000 | |||
Restricted Shares And Restricted Share Units [Member] | Maximum [Member] | ||||||
Weighted-average grant-date fair value per share | ||||||
Requisite service period | 36 months | |||||
Share appreciation rights [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 33.33% | |||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 0 | $ 0 | $ 200,000 | |||
Awards vesting period | 3 years | |||||
Weighted-average grant-date fair value per share | ||||||
Expiration period | 10 years | |||||
Number of shares under SARs | ||||||
Outstanding at beginning of period (in shares) | 1,029,000 | |||||
Exercised (in shares) | 0 | 0 | 0 | |||
Forfeited or expired (in shares) | (17,000) | |||||
Outstanding at end of period (in shares) | 1,012,000 | 1,029,000 | ||||
Grants (in shares) | 0 | 0 | 0 | |||
Number of shares under SARs exercisable | 1,012,000 | |||||
Weighted-average exercise price | ||||||
Outstanding at beginning of period (in dollars per share) | $ 31.03 | |||||
Forfeited or expired (in dollars per share) | 36.86 | |||||
Outstanding at end of period (in dollars per share) | $ 30.93 | $ 31.03 | ||||
Exercisable at end of period (in dollars per share) | $ 30.93 | |||||
Outstanding at end of period, Weighted-average remaining contractual term (in years) | 2 years 8 days | |||||
Exercisable at end of period, Weighted-average remaining contractual term (in years) | 2 years 8 days | |||||
Outstanding at end of period, Aggregate intrinsic value | $ 0 | |||||
Exercisable at end of period, Aggregate intrinsic value | $ 0 | |||||
Share options [Member] | ||||||
Number of shares under SARs | ||||||
Outstanding at beginning of period (in shares) | 455,000 | |||||
Exercised (in shares) | (5,000) | 0 | 0 | |||
Forfeited or expired (in shares) | (95,000) | |||||
Outstanding at end of period (in shares) | 355,000 | 455,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 0 | |||||
Weighted-average exercise price | ||||||
Outstanding at beginning of period (in dollars per share) | $ 17.08 | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 15.31 | |||||
Forfeited or expired (in dollars per share) | 15.31 | |||||
Outstanding at end of period (in dollars per share) | $ 17.59 | $ 17.08 | ||||
Exercisable at end of period (in dollars per share) | $ 0 | |||||
Outstanding at end of period, Weighted-average remaining contractual term (in years) | 5 years 1 month 23 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 19,200 | |||||
Outstanding at end of period, Aggregate intrinsic value | $ 0 | |||||
Exercisable at end of period, Aggregate intrinsic value | $ 0 | |||||
Share options [Member] | Minimum [Member] | ||||||
Weighted-average grant-date fair value per share | ||||||
Requisite service period | 3 years | |||||
Expiration period | 7 years | |||||
Restricted shares [Member] | ||||||
Number of Shares | ||||||
Nonvested at beginning of period (in shares) | 0 | |||||
Granted (in shares) | 367,000 | 0 | ||||
Vested / Settled (in shares) | (141,000) | |||||
Nonvested at end of period (in shares) | 226,000 | 0 | ||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at beginning of period (in dollars per share) | $ 0 | |||||
Granted (in dollars per share) | 14.99 | $ 18.60 | ||||
Vested / Settled (in dollars per share) | 15.18 | |||||
Nonvested at end of period (in dollars per share) | $ 14.88 | $ 0 | ||||
Fair value of shares vested | $ 1,300,000 | $ 758,000 | $ 37,000 | |||
Granted (in dollars per share) | $ 14.99 | $ 18.60 | ||||
Weighted-average exercise price | ||||||
Nonvested at end of period (in dollars per share) | $ 0 | $ 0 | $ 14.88 | $ 0 | ||
Restricted share units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 33.33% | |||||
Number of Shares | ||||||
Nonvested at beginning of period (in shares) | 2,436,000 | |||||
Granted (in shares) | 1,334,000 | |||||
Vested / Settled (in shares) | (1,004,000) | |||||
Forfeited (in shares) | (193,000) | |||||
Cancelled (in shares) | (367,000) | |||||
Nonvested at end of period (in shares) | 2,206,000 | 2,436,000 | ||||
Weighted-average grant-date fair value per share | ||||||
Nonvested at beginning of period (in dollars per share) | $ 15.59 | |||||
Granted (in dollars per share) | 13.60 | $ 17.09 | $ 11.62 | |||
Vested / Settled (in dollars per share) | 15.44 | |||||
Forfeited (in dollars per share) | 14.32 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Cancelled, Weighted Average Grant Date Fair Value | 14.99 | |||||
Nonvested at end of period (in dollars per share) | $ 14.67 | $ 15.59 | ||||
Fair value of shares vested | $ 13,700,000 | $ 17,800,000 | $ 14,600,000 | |||
Requisite service period | 3 years | |||||
Granted (in dollars per share) | $ 13.60 | $ 17.09 | $ 11.62 | |||
Weighted-average exercise price | ||||||
Nonvested at end of period (in dollars per share) | $ 15.59 | $ 15.59 | $ 14.67 | $ 15.59 | ||
Non Employee Director Deferred Restricted Share Units [Member] | ||||||
Number of Shares | ||||||
Outstanding, beginning of period (in shares) | 203,000 | |||||
Granted (in shares) | 26,000 | |||||
Vested / Settled (in shares) | 0 | (114,000) | (54,000) | |||
Outstanding, end of period (in shares) | 229,000 | 203,000 | ||||
Vested at end of period (in shares) | 203,000 | |||||
Weighted-average grant-date fair value per share | ||||||
Outstanding, beginning of period (in dollars per share) | $ 25.62 | |||||
Granted (in dollars per share) | 15.29 | $ 13.24 | $ 17.43 | |||
Vested / Settled (in dollars per share) | 0 | |||||
Outstanding, end of period (in dollars per share) | 24.44 | $ 25.62 | ||||
Vested at end of period (in dollars per share) | 25.62 | |||||
Fair value of shares of common stock issued in connection with settlement of vested RSUs | $ 1,500,000 | $ 1,000,000 | ||||
Granted (in dollars per share) | $ 15.29 | $ 13.24 | $ 17.43 | |||
Non Employee Director Deferred and Non-Deferred Restricted Share Units [Member] | ||||||
Weighted-average grant-date fair value per share | ||||||
Fair value of long-term liabilities | $ 2,300,000 | $ 3,800,000 | ||||
Performance Shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Total compensation cost | $ 6,000,000 | $ 9,700,000 | $ 12,600,000 | |||
Weighted-average grant-date fair value per share | ||||||
Performance-based awards, target value, per share amount | $ 100 | $ 100 | $ 100 | |||
Cash paid for units vested | $ 11,900,000 | $ 11,400,000 | $ 7,900,000 | |||
Weighted-average exercise price | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award Equity Instruments Other Than Options, Aggregate Grant Date Fair Value1 | $ 8,600,000 | 7,000,000 | 9,500,000 | |||
Performance Shares [Member] | Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Awards vesting period | 36 months | |||||
Other Current Liabilities [Member] | Performance Shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Deferred Compensation Share-based Arrangements, Liability, Current | 9,100,000 | 11,500,000 | ||||
Other Liabilities [Member] | Performance Shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Deferred Compensation Share-based Arrangements, Liability, Current | $ 7,000,000 | $ 10,500,000 | ||||
February 27, 2018 Grant [Member] | Performance Shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Awards vesting period | 3 years | |||||
February 27, 2018 Grant [Member] | Performance Shares [Member] | Minimum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Expected Per Share Amount | $ 0 | |||||
February 27, 2018 Grant [Member] | Performance Shares [Member] | Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Expected Per Share Amount | 200 | |||||
Granted in 2017 and 2016 [Member] | Performance Shares [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Awards vesting period | 3 years | |||||
Granted in 2017 and 2016 [Member] | Performance Shares [Member] | Minimum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Expected Per Share Amount | 0 | |||||
Granted in 2017 and 2016 [Member] | Performance Shares [Member] | Maximum [Member] | ||||||
Compensation cost charged to expense under all share-based incentive awards [Abstract] | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Expected Per Share Amount | $ 200 | |||||
Granted During 2017 [Member] | Share options [Member] | ||||||
Weighted-average grant-date fair value per share | ||||||
Requisite service period | 4 years | |||||
Share-based Compensation Award, Tranche One [Member] | February 27, 2018 Grant [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Unit Value Determined On Annual Performance | 25.00% | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 1 year | |||||
Share-based Compensation Award, Tranche One [Member] | Granted in 2017 and 2016 [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Unit Value Determined On Annual Performance | 25.00% | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 1 year | |||||
Share-based Compensation Award, Total Period [Member] | February 27, 2018 Grant [Member] | Performance Shares [Member] | ||||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Unit Value Determined On Total Vesting Period Performance | 25.00% | |||||
Share-based Compensation Award, Total Period [Member] | Granted in 2017 and 2016 [Member] | Performance Shares [Member] | ||||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Unit Value Determined On Total Vesting Period Performance | 25.00% | |||||
Share-based Compensation Award, Tranche Two [Member] | February 27, 2018 Grant [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Unit Value Determined On Annual Performance | 25.00% | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 1 year | |||||
Share-based Compensation Award, Tranche Two [Member] | Granted in 2017 and 2016 [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Unit Value Determined On Annual Performance | 25.00% | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 1 year | |||||
Share-based Compensation Award, Tranche Three [Member] | February 27, 2018 Grant [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Unit Value Determined On Annual Performance | 25.00% | |||||
Weighted-average exercise price | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period For Value Determination | 1 year |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Projected benefit obligations: | |||
Balance, January 1 | $ 853.8 | $ 802 | |
Interest cost | 28.4 | 26.4 | |
Service cost | 6.2 | 12.4 | |
Actuarial (gain) loss | (52.6) | 83.5 | |
Plan amendments | (0.5) | 0 | |
Plan settlements | 0 | (16.4) | |
Plan curtailments | (1.1) | 0 | |
Exchange rate changes | (0.4) | 0.3 | |
Benefits paid | (59.1) | (54.4) | |
Balance, December 31 | 774.7 | 853.8 | $ 802 |
Plan assets: | |||
Fair value, January 1 | 609.7 | 544.6 | |
Actual return | (40.5) | 88 | |
Employer contributions | 24.2 | 29.3 | |
Plan settlements | 0 | 0 | |
Exchange rate changes | (0.2) | 0.2 | |
Benefits paid | (57.7) | (52.4) | |
Fair value, December 31 | 535.5 | 609.7 | 544.6 |
Net benefit liabilities | (239.2) | (244.1) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (16.8) | (27) | |
Other liabilities (long-term) | (222.4) | (217.1) | |
Net benefit liabilities | (239.2) | (244.1) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | 115.9 | 81.1 | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | (368.5) | (364.4) | |
Prior service credit | 13.4 | 39.2 | |
Total accumulated other comprehensive income (loss) | (355.1) | (325.2) | |
Net benefit liabilities | (239.2) | (244.1) | |
Weighted-average assumptions: | |||
Accumulated benefit obligation | 754.7 | 830.8 | |
Pension benefits [Member] | |||
Projected benefit obligations: | |||
Balance, January 1 | 835.8 | 772.1 | |
Interest cost | 27.9 | 25.5 | 26.3 |
Service cost | 6.1 | 12.3 | 16.3 |
Actuarial (gain) loss | (51.4) | 78 | |
Plan amendments | (0.5) | 0 | |
Plan settlements | 0 | 0 | |
Plan curtailments | (1.1) | 0 | |
Exchange rate changes | (0.4) | 0.3 | |
Benefits paid | (57.7) | (52.4) | |
Balance, December 31 | 758.7 | 835.8 | 772.1 |
Plan assets: | |||
Fair value, January 1 | 609.7 | 544.6 | |
Actual return | (40.5) | 88 | |
Employer contributions | 24.2 | 29.3 | |
Plan settlements | 0 | 0 | |
Exchange rate changes | (0.2) | 0.2 | |
Benefits paid | (57.7) | (52.4) | |
Fair value, December 31 | 535.5 | 609.7 | 544.6 |
Net benefit liabilities | (223.2) | (226.1) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (15.1) | (24.5) | |
Other liabilities (long-term) | (208.1) | (201.6) | |
Net benefit liabilities | (223.2) | (226.1) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | 141.7 | 120.2 | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | (364.2) | (358.1) | |
Prior service credit | (0.7) | 11.8 | |
Total accumulated other comprehensive income (loss) | (364.9) | (346.3) | |
Net benefit liabilities | $ (223.2) | $ (226.1) | |
Weighted-average assumptions: | |||
Discount rate | 4.35% | 3.68% | |
Rate of compensation increase | 3.78% | 4.28% | |
Other benefits [Member] | |||
Projected benefit obligations: | |||
Balance, January 1 | $ 18 | $ 29.9 | |
Interest cost | 0.5 | 0.9 | 1.6 |
Service cost | 0.1 | 0.1 | 0.3 |
Actuarial (gain) loss | (1.2) | 5.5 | |
Plan amendments | 0 | 0 | |
Plan settlements | 0 | (16.4) | |
Plan curtailments | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Benefits paid | (1.4) | (2) | |
Balance, December 31 | 16 | 18 | 29.9 |
Plan assets: | |||
Fair value, January 1 | 0 | 0 | |
Actual return | 0 | 0 | |
Employer contributions | 0 | 0 | |
Plan settlements | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value, December 31 | 0 | 0 | $ 0 |
Net benefit liabilities | (16) | (18) | |
Amounts recognized in Consolidated Balance Sheet: | |||
Accrued liabilities | (1.7) | (2.5) | |
Other liabilities (long-term) | (14.3) | (15.5) | |
Net benefit liabilities | (16) | (18) | |
Accumulated contributions in excess of (less than) net periodic benefit cost | (25.8) | (39.1) | |
Amounts not yet reflected in net periodic benefit cost: | |||
Actuarial (loss) gain | (4.3) | (6.3) | |
Prior service credit | 14.1 | 27.4 | |
Total accumulated other comprehensive income (loss) | 9.8 | 21.1 | |
Net benefit liabilities | $ (16) | $ (18) | |
Weighted-average assumptions: | |||
Discount rate | 4.23% | 3.52% |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, Additional Disclosures 3 (Details) - USD ($) $ in Millions | Aug. 10, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss recognized | $ (5.8) | |||
Plan amendments | $ (0.5) | 0 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 52.6 | (83.5) | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 1.1 | 0 | ||
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | ||||
Actuarial (loss) gain | (9.6) | |||
Prior service credit | 12.4 | |||
Total amortization | 2.8 | |||
Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss recognized | 0 | 0 | $ (0.5) | |
Plan amendments | (0.5) | 0 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 51.4 | (78) | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 1.1 | 0 | ||
Curtailment gain recognized | 11.4 | 0 | 0.4 | |
Expected payments | 48.5 | |||
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | ||||
Actuarial (loss) gain | (9) | |||
Prior service credit | 0 | |||
Total amortization | (9) | |||
Retiree Medical Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | (7.2) | |||
Expected payments | 4.4 | |||
Plan amendment payment | 2.6 | |||
Other benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss recognized | 0 | (5.8) | $ (0.1) | |
Plan amendments | 0 | 0 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 1.2 | (5.5) | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | $ 0 | ||
Expected payments | 1.7 | |||
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year | ||||
Actuarial (loss) gain | (0.6) | |||
Prior service credit | 12.4 | |||
Total amortization | 11.8 | |||
Rowan Norway Limited [Member] | Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected reduction in plan participants, percentage | 50.00% | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | $ 25.9 | 1.3 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | (3.4) | 23.6 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (3.3) | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (9) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Increase (Decrease) for Plan Amendment | 19.2 | 15.9 | ||
Other Noncurrent Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | 14 | 0.3 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | (1.8) | 6.3 | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (1.9) | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (1) | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Increase (Decrease) for Plan Amendment | 10.3 | 5.6 | ||
Other Current Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | (39.9) | (1.6) | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement | 5.2 | (29.9) | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 5.2 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Increase (Decrease) for Plan Amendment | $ (29.5) | (31.5) | ||
Income Taxes [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Provision (benefit) for income tax in Defined Benefit Plan Curtailment | 1.4 | |||
Income Taxes [Member] | Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Provision (benefit) for income tax in Defined Benefit Plan Curtailment | 1.4 | |||
Other, Net [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain recognized | 11.4 | |||
Other, Net [Member] | Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain recognized | $ 11.4 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, Additional Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost (1) | $ 6.2 | $ 12.4 | |
Interest cost (2) | $ 28.4 | 26.4 | |
Settlement loss recognized (2) | 5.8 | ||
Target rate of return of pension plan investments above inflation rate (in hundredths) | 3.00% | ||
Pension benefits [Member] | |||
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost (1) | $ 6.1 | 12.3 | $ 16.3 |
Interest cost (2) | 27.9 | 25.5 | 26.3 |
Expected return on plan assets (2) | (36.5) | (37.7) | (39.6) |
Amortization of net (gain) loss (2) | 18.5 | 23.3 | 21 |
Prior service amortization | (1.7) | (5.1) | (5) |
Curtailment gain recognized (2) | (11.4) | 0 | (0.4) |
Settlement loss recognized (2) | 0 | 0 | 0.5 |
Net periodic pension cost | $ 2.9 | $ 18.3 | $ 19.1 |
Discount rate | 3.69% | 4.29% | 4.53% |
Expected return on plan assets | 6.68% | 7.13% | 7.28% |
Rate of compensation increase | 4.28% | 4.14% | 4.14% |
Other benefits [Member] | |||
Components of net periodic pension cost and weighted-average assumptions used to determine net cost [Abstract] | |||
Service cost (1) | $ 0.1 | $ 0.1 | $ 0.3 |
Interest cost (2) | 0.5 | 0.9 | 1.6 |
Amortization of net (gain) loss (2) | 0.8 | 0.7 | 0.3 |
Prior service amortization | (13.3) | (13.3) | (6.4) |
Settlement loss recognized (2) | 0 | 5.8 | 0.1 |
Net periodic pension cost | $ (11.9) | $ (5.8) | $ (4.1) |
Discount rate | 3.50% | 3.91% | 4.18% |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, Additional Disclosures 2 (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 535.5 | $ 609.7 | $ 544.6 | |
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Expected return on plan assets, fair value of plan assumption | 3 | |||
Estimated future annual payments for pension and other postretirement benefits [Abstract] | ||||
Contributions made to defined contribution plans classified as continuing operations | 12.1 | 12.5 | 16.7 | |
Pension benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 535.5 | $ 609.7 | 544.6 | |
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Expected return on plan assets, weighted average | 6.70% | 6.70% | ||
Estimated future employer contributions in next fiscal year | $ 15 | |||
Estimated future annual payments for pension and other postretirement benefits [Abstract] | ||||
2,019 | 48.5 | |||
2,020 | 49.7 | |||
2,021 | 50.5 | |||
2,022 | 51 | |||
2,023 | 51.3 | |||
2024 though 2028 | 256.4 | |||
Other benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | $ 0 | $ 0 | |
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Estimated future employer contributions in next fiscal year | 2 | |||
Estimated future annual payments for pension and other postretirement benefits [Abstract] | ||||
2,019 | 1.7 | |||
2,020 | 1.6 | |||
2,021 | 1.4 | |||
2,022 | 1.4 | |||
2,023 | 1.3 | |||
2024 though 2028 | 5.9 | |||
U.S. large cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 131.6 | 158.2 | ||
U.S. small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 35.6 | 45.3 | ||
International all cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 129.9 | 156.2 | ||
International small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 28.8 | 36.3 | ||
Defined Benefit Plan, Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 51.7 | 50.6 | ||
Cash and equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4.1 | 6.2 | ||
Aggregate fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 73.9 | 74.9 | ||
Core plus fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 74.7 | 78.1 | ||
Group annuity contracts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.2 | 3.9 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 74.7 | 78.1 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. large cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | International all cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | International small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | Defined Benefit Plan, Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | Cash and equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | Aggregate fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | Core plus fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 74.7 | 78.1 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | Group annuity contracts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 460.8 | 531.6 | ||
Significant observable inputs (Level 2) [Member] | U.S. large cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 131.6 | 158.2 | ||
Significant observable inputs (Level 2) [Member] | U.S. small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 35.6 | 45.3 | ||
Significant observable inputs (Level 2) [Member] | International all cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 129.9 | 156.2 | ||
Significant observable inputs (Level 2) [Member] | International small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 28.8 | 36.3 | ||
Significant observable inputs (Level 2) [Member] | Defined Benefit Plan, Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 51.7 | 50.6 | ||
Significant observable inputs (Level 2) [Member] | Cash and equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4.1 | 6.2 | ||
Significant observable inputs (Level 2) [Member] | Aggregate fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 73.9 | 74.9 | ||
Significant observable inputs (Level 2) [Member] | Core plus fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant observable inputs (Level 2) [Member] | Group annuity contracts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5.2 | 3.9 | ||
Significant unobservable inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | U.S. large cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | U.S. small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | International all cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | International small cap [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | Defined Benefit Plan, Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | Cash and equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | Aggregate fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | Core plus fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) [Member] | Group annuity contracts [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
Subsequent Event [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Market related valuation losses to be recognized | $ 36.6 | |||
Minimum [Member] | Equity Securities [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 53.00% | 53.00% | ||
Minimum [Member] | U.S. large cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 22.00% | 22.00% | ||
Minimum [Member] | U.S. small cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 4.00% | 4.00% | ||
Minimum [Member] | International all cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 21.00% | 21.00% | ||
Minimum [Member] | International small cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 2.00% | 2.00% | ||
Minimum [Member] | Defined Benefit Plan, Real Estate [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 0.00% | 0.00% | ||
Minimum [Member] | Fixed Income Securities [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 25.00% | 25.00% | ||
Minimum [Member] | Cash and equivalents [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 0.00% | 0.00% | ||
Minimum [Member] | Aggregate fixed income [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 9.00% | 9.00% | ||
Minimum [Member] | Core plus fixed income [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 9.00% | 9.00% | ||
Maximum [Member] | Equity Securities [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 69.00% | 69.00% | ||
Maximum [Member] | U.S. large cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 28.00% | 28.00% | ||
Maximum [Member] | U.S. small cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 10.00% | 10.00% | ||
Maximum [Member] | International all cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 29.00% | 29.00% | ||
Maximum [Member] | International small cap [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 8.00% | 8.00% | ||
Maximum [Member] | Defined Benefit Plan, Real Estate [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 13.00% | 13.00% | ||
Maximum [Member] | Fixed Income Securities [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 35.00% | 35.00% | ||
Maximum [Member] | Cash and equivalents [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 10.00% | 10.00% | ||
Maximum [Member] | Aggregate fixed income [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 19.00% | 19.00% | ||
Maximum [Member] | Core plus fixed income [Member] | ||||
Target allocation percentage of plan assets by asset category [Abstract] | ||||
Equity securities, range minimum (in hundredths) | 19.00% | 19.00% |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of Net Loss [Member] | |||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | |||
Total before income taxes | $ (19.3) | $ (29.8) | $ (21.9) |
Amortization of Prior Service Credit [Member] | |||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | |||
Total before income taxes | 26.4 | 18.4 | 10.7 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | |||
Total before income taxes | 7.1 | (11.4) | (11.2) |
Income tax (expense) benefit | (1.5) | 0 | 3.8 |
Total reclassifications for the period, net of income taxes | $ 5.6 | $ (11.4) | $ (7.4) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
U.K. Enacted statutory income tax rate, Jan 1, 2014 - Mar 31, 2017 | 20.00% | |||
U.K. Enacted statutory income tax rate, Apr 1, 2017 - Mar 31, 2020 | 19.00% | |||
U.K. Enacted statutory income tax rate, beginning Apr 1, 2020 | 17.00% | |||
U.K. statutory rate | 19.00% | 19.25% | 20.00% | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Valuation allowance | $ 869.9 | $ 905.9 | $ 869.9 | |
Deferred tax valuation allowance increase (decrease) | (52.1) | |||
Provisional amount resulting from the remeasurement of deferred tax assets | (56.7) | |||
Unrecognized tax benefits, net | 41 | 35 | 41 | $ 59 |
Tax impact of unrecognized tax benefits, if reversed | 35 | |||
Accrued interest on income taxes | 1.4 | 1.7 | 1.4 | 11.8 |
Accrued penalties on income taxes | 2.2 | (0.5) | 2.2 | 3.1 |
IRS proposed unfavorable tax adjustments | 85 | |||
Luxembourg [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Net operating loss carryforwards | 4,534 | |||
Valuation allowance | 766.5 | 867.9 | 766.5 | $ 747 |
Deferred tax valuation allowance increase (decrease) | 101.4 | 19.8 | ||
Operating loss carryforwards subject to valuation allowance | 3,337 | |||
Non expiring NOLs | 4,803 | |||
U.S. [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Provisional amount relating to the one-time transition tax on certain previously deferred non-U.S. earnings | 34.1 | 26.4 | ||
Provision expense resulting from change in tax rate | 56.7 | 61.6 | ||
Increase (Decrease) In Income Tax Expense | 4.9 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Net operating loss carryforwards | 366 | |||
Valuation allowance | 90.4 | 22 | 90.4 | |
Deferred tax valuation allowance increase (decrease) | (68.4) | (41.7) | ||
Operating loss carryforwards subject to valuation allowance | 76 | |||
U.K. [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating loss carryforwards subject to valuation allowance | 36 | |||
Non expiring NOLs | 36 | |||
Trinidad [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating loss carryforwards subject to valuation allowance | 21 | |||
Non expiring NOLs | 21 | |||
Foreign [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Provision expense resulting from change in tax rate | $ 38.3 | 33.7 | ||
Increase (Decrease) In Income Tax Expense | (12.3) | |||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Valuation allowance | 906 | |||
Non expiring NOLs | 15 | |||
Non expiring NOLs subject to a valuation allowance | 15 | |||
Tax credit carryforward | $ 29 | |||
Deferred Intra-Entity Transfer Asset [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Deferred tax valuation allowance increase (decrease) | $ 60.3 |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of income taxes, continuing operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
U.S. | $ 2.9 | $ (14.9) | $ 10 |
Non - U.S. | 13.6 | 16.8 | 32.9 |
State | 0 | 0 | 0 |
Current expense (benefit) | 16.5 | 1.9 | 42.9 |
Deferred: | |||
U.S. | (69.8) | (1.2) | (20.9) |
Non - U.S. | 1.7 | 25.9 | (17) |
Deferred provision (benefit) | (68.1) | 24.7 | (37.9) |
Total provision (benefit) | $ (51.6) | $ 26.6 | $ 5 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense (benefit), income tax reconciliation and components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax provision (benefit), income tax reconciliation [Abstract] | |||
U.K. statutory rate | 19.00% | 19.25% | 20.00% |
Tax at statutory rate | $ (75.8) | $ 19.1 | $ 65.1 |
Foreign rate differential | 9.6 | (39.5) | (92.7) |
Deferred intercompany gain/loss | 0 | 0 | (20.1) |
Foreign asset basis difference | 1.8 | (38.1) | 405.9 |
Luxembourg restructuring operating loss (2) | (22.9) | 0 | (1,180.2) |
Change in valuation allowance | 37.6 | (29.4) | 814.7 |
Prior period adjustments | (2.9) | 3.6 | (4.1) |
Unrecognized tax benefits | (4.7) | (24.1) | 7.1 |
U.S. tax on RCI non-U.S. subsidiaries | 9.4 | 5.4 | 6.3 |
Effective Income Tax Rate Reconciliation, Effect of Tax Cuts and Jobs Act of 2017 | (7.4) | 129.1 | 0 |
Foreign tax credits/deductions | 0 | (0.8) | (1.5) |
Other, net | 3.7 | 1.3 | 4.5 |
Total provision (benefit) | (51.6) | 26.6 | 5 |
Deferred tax assets | |||
Accrued employee benefit plan costs | 48.2 | 46.2 | |
U.S. net operating loss | 40.6 | 39.3 | |
Other NOLs and tax credit carryforwards | 38 | 38.1 | |
Other | 18.6 | 16.3 | |
Total deferred tax assets | 1,409.9 | 1,315.3 | |
Less: valuation allowance | (905.9) | (869.9) | |
Deferred tax assets, net of valuation allowance | 504 | 445.4 | |
Deferred tax liabilities | |||
Property and equipment | 396.2 | 412.8 | |
Other | 12.3 | 11.9 | |
Total deferred tax liabilities | 408.5 | 424.7 | |
Net deferred tax asset (liability) | 95.5 | 20.7 | |
U.K. [Member] | |||
Deferred tax assets | |||
Foreign net operating loss | 6 | 2.4 | |
Trinidad [Member] | |||
Deferred tax assets | |||
Foreign net operating loss | 5.2 | 5.9 | |
Luxembourg [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 4,534 | ||
Deferred tax assets | |||
Foreign net operating loss | 1,249.4 | 1,163.2 | 1,180 |
Deferred Tax Liabilities, Book Over Tax Asset Basis Difference | 409 | ||
Less: valuation allowance | (867.9) | (766.5) | $ (747) |
Suriname [Member] | |||
Deferred tax assets | |||
Foreign net operating loss | $ 3.9 | $ 3.9 |
INCOME TAXES - Changes in gross
INCOME TAXES - Changes in gross unrecognized tax benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits - beginning of year | $ 102 | $ 120.1 | $ 65.1 |
Gross increases - tax positions in prior period | 1.1 | 1.4 | 46.2 |
Gross decreases - tax positions in prior period | (0.3) | (5.6) | (0.6) |
Gross increases - current period tax positions | 3.2 | 3.1 | 10.9 |
Settlements | 0 | (0.8) | (1.5) |
Lapse of statute of limitations | (7.8) | (16.2) | 0 |
Gross unrecognized tax benefit - end of year | $ 98.2 | $ 102 | $ 120.1 |
INCOME TAXES - Schedule of inco
INCOME TAXES - Schedule of income (loss) before income tax, domestic and foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (10.3) | $ (63.7) | $ (180.2) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (388.7) | 163 | 505.8 |
INCOME (LOSS) BEFORE INCOME TAXES | $ (399) | $ 99.3 | $ 325.6 |
SEGMENT AND GEOGRAPHIC AREA I_3
SEGMENT AND GEOGRAPHIC AREA INFORMATION - Segment (Details) $ in Millions | Oct. 01, 2018drilling_unit | Oct. 17, 2017drilling_unit | Oct. 16, 2017segment | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 2 | 3 | ||||
REVENUE | $ 824.8 | $ 1,282.8 | $ 1,843.2 | |||
Direct operating costs (excluding items below) | 682.7 | 685 | 779.7 | |||
Depreciation and amortization | 388.9 | 403.7 | 402.9 | |||
Selling, general and administrative | 96.1 | 104.6 | 102.2 | |||
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | 0 | |||
Other operating items | 12.1 | 9.4 | 41.6 | |||
Merger and related costs | 8.9 | 0 | 0 | |||
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | 0 | |||
INCOME (LOSS) FROM OPERATIONS | (287.8) | 238.4 | 516.8 | |||
Capital expenditures | 169.2 | 100.6 | 117.6 | |||
Total assets (at end of year) | 8,117.7 | 8,458.3 | ||||
Deepwater [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 158.1 | 467.9 | 827.5 | |||
Jack-ups [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 632.9 | 807.5 | 1,015.7 | |||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 1,173.6 | 1,331.4 | 1,843.2 | |||
Direct operating costs (excluding items below) | 876.7 | 707.2 | 779.7 | |||
Depreciation and amortization | 456.3 | 416.6 | 402.9 | |||
Selling, general and administrative | 123.1 | 110.7 | 102.2 | |||
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | ||||
Other operating items | 13.5 | 9.3 | 41.6 | |||
Merger and related costs | 8.9 | |||||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | (239.1) | 245 | 516.8 | |||
Operating Segments [Member] | Deepwater [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 158.1 | 467.9 | 827.5 | |||
Direct operating costs (excluding items below) | 168.6 | 151.4 | 222.4 | |||
Depreciation and amortization | 108.5 | 111.6 | 115 | |||
Selling, general and administrative | 0 | 0 | 0 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Other operating items | 1.6 | 0.1 | 0.1 | |||
Merger and related costs | 0 | |||||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | (120.6) | 204.8 | 490 | |||
Capital expenditures | 16.7 | 8.3 | 31.5 | |||
Total assets (at end of year) | 2,757.9 | 2,857.6 | ||||
Operating Segments [Member] | Jack-ups [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 632.9 | 807.5 | 1,015.7 | |||
Direct operating costs (excluding items below) | 514.1 | 533.6 | 557.3 | |||
Depreciation and amortization | 278.3 | 289.4 | 282.6 | |||
Selling, general and administrative | 0 | 0 | 0 | |||
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | ||||
Other operating items | 5.3 | 9.3 | 40.9 | |||
Merger and related costs | 0 | |||||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | (99) | 132.6 | 134.9 | |||
Capital expenditures | 145.8 | 86.4 | 84.3 | |||
Total assets (at end of year) | 4,153.8 | 4,173.7 | ||||
Operating Segments [Member] | ARO Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 348.8 | 48.6 | 0 | |||
Direct operating costs (excluding items below) | 194 | 22.2 | 0 | |||
Depreciation and amortization | 67.4 | 12.9 | 0 | |||
Selling, general and administrative | 27 | 6.1 | 0 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Other operating items | 1.4 | (0.1) | 0 | |||
Merger and related costs | 0 | |||||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | 59 | 7.5 | 0 | |||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | 33.8 | 7.4 | 0 | |||
Direct operating costs (excluding items below) | 0 | 0 | 0 | |||
Depreciation and amortization | 2.1 | 2.7 | 5.3 | |||
Selling, general and administrative | 96.1 | 104.6 | 102.2 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Other operating items | 5.2 | 0 | 0.6 | |||
Merger and related costs | 8.9 | |||||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | (78.5) | (99.9) | (108.1) | |||
Segment Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | 6.7 | 5.9 | 1.8 | |||
Total assets (at end of year) | 1,206 | 1,427 | ||||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
REVENUE | (348.8) | (48.6) | 0 | |||
Direct operating costs (excluding items below) | (194) | (22.2) | 0 | |||
Depreciation and amortization | (67.4) | (12.9) | 0 | |||
Selling, general and administrative | (27) | (6.1) | 0 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Other operating items | (1.4) | 0.1 | 0 | |||
Merger and related costs | 0 | |||||
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | ||||
INCOME (LOSS) FROM OPERATIONS | (48.7) | (6.6) | $ 0 | |||
Rowan Companies plc (Parent) [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Initial Number Of Rigs Contributed To Joint Venture | drilling_unit | 2 | 3 | ||||
Equity in earnings of unconsolidated subsidiary | $ 10.3 | $ 0.9 | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Initial Number Of Rigs Contributed To Joint Venture | drilling_unit | 1 | |||||
Equity Method Investment, Ownership Percentage | 50.00% |
SEGMENT AND GEOGRAPHIC AREA I_4
SEGMENT AND GEOGRAPHIC AREA INFORMATION - Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | $ 824.8 | $ 1,282.8 | $ 1,843.2 |
Long-lived assets | 6,242.2 | 6,583.6 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 3,141.3 | 3,065.6 | |
Saudi Arabia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 717.8 | 633.9 | |
Norway [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 810.8 | 862.8 | |
Trinidad [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 667 | 599.5 | |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 328.3 | 1,067.2 | |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 577 | 354.6 | |
Unallocated and Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 33.8 | 7.4 | 0 |
Unallocated and Other [Member] | Saudi Arabia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 33.8 | 7.4 | 0 |
Jack-ups Segment [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 632.9 | 807.5 | 1,015.7 |
Jack-ups Segment [Member] | United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 31 | 45.2 | 29.1 |
Jack-ups Segment [Member] | Saudi Arabia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 319.9 | 383.2 | 363.9 |
Jack-ups Segment [Member] | Norway [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 86.5 | 193.8 | 312.6 |
Jack-ups Segment [Member] | Trinidad [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 115.4 | 127 | 130.4 |
Jack-ups Segment [Member] | United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 74 | 58.2 | 120.6 |
Jack-ups Segment [Member] | Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 6.1 | 0.1 | 59.1 |
Deepwater [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 158.1 | 467.9 | 827.5 |
Deepwater [Member] | United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | 157 | 465.5 | 823.7 |
Deepwater [Member] | Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
REVENUE | $ 1.1 | $ 2.4 | $ 3.8 |
GAIN ON SALE OF ASSETS TO UNC_2
GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY (Details) $ in Millions | Oct. 01, 2018USD ($)drilling_unit | Oct. 17, 2017USD ($)drilling_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY [Line Items] | |||||
Proceeds from sale of assets to unconsolidated subsidiary | $ 266 | $ 357.7 | $ 0 | ||
Book Value of Assets Sold to Unconsolidated Subsidiary | $ 200.2 | $ 200.3 | |||
Gain (Loss) on Disposition of Business | $ 65.8 | $ 157.4 | $ 0 | ||
Saudi Arabia Joint Venture [Member] | Rowan Companies plc (Parent) [Member] | |||||
GAIN ON SALE OF ASSETS TO UNCONSOLIDATED SUBSIDIARY [Line Items] | |||||
Initial Number Of Rigs Contributed To Joint Venture | drilling_unit | 2 | 3 |
MATERIAL CHARGES AND OTHER OP_2
MATERIAL CHARGES AND OTHER OPERATING ITEMS (Details) $ in Millions | Sep. 30, 2016drilling_unit | Sep. 30, 2015drilling_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)drilling_unit |
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | $ 34.3 | ||
Reversal of estimated settlement liaibility | 1.4 | ||||
Jack-up Rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 34.3 | ||||
Number of drilling units impaired | drilling_unit | 5 | 10 | 5 | ||
Material Charges and Other Operating Items [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | |||
Material Charges and Other Operating Items [Member] | Jack-up Rigs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 34.3 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) $ in Millions | Jan. 05, 2018USD ($)drilling_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Supplemental Cash Flow Information [Line Items] | ||||
Number of Rigs Purchased at Auction | drilling_unit | 2 | |||
Capital Expenditures Incurred but Not yet Paid | $ 42.2 | $ 21.4 | $ 21 | |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 153.9 | 150.2 | 159.2 | |
Income Taxes Paid, Net | $ 33.1 | 30 | $ 38.1 | |
P-60 [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 38.5 | |||
P-59 [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 38.5 | |||
P-59 and P60 Rigs [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Purchase Price of Rigs Won at Auction | 77 | |||
Security Deposit | $ 7.7 | |||
Purchase Price of Rigs Won at Auction less Deposit | 69.3 | |||
Transaction Costs | $ 1.5 |
GUARANTEES OF REGISTERED SECU_3
GUARANTEES OF REGISTERED SECURITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Income Statements [Abstract] | ||||||
REVENUE | $ 824.8 | $ 1,282.8 | $ 1,843.2 | |||
COSTS AND EXPENSES: | ||||||
Direct operating costs (excluding items below) | 682.7 | 685 | 779.7 | |||
Depreciation and amortization | 388.9 | 403.7 | 402.9 | |||
Selling, general and administrative | 96.1 | 104.6 | 102.2 | |||
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | 0 | |||
Gain (loss) on disposals of property and equipment | 12.1 | 9.4 | 8.7 | |||
Material Charges And Other Operating Expenses | 8.9 | |||||
Material charges and other operating items | 0 | 0 | 32.9 | |||
Total costs and expenses | 1,122.9 | 1,045.3 | 1,326.4 | |||
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | 0 | |||
INCOME (LOSS) FROM OPERATIONS | (287.8) | 238.4 | 516.8 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | (156.3) | (155.7) | (155.5) | |||
Interest income | 33.1 | 15.4 | 3.8 | |||
Gain on extinguishment of debt | 0 | 1.7 | (31.2) | |||
Other - net | 12 | (0.5) | (8.3) | |||
Total other (expense) - net | (111.2) | (139.1) | (191.2) | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (399) | 99.3 | 325.6 | |||
Provision (benefit) for income taxes | (51.6) | 26.6 | 5 | |||
EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES, NET OF TAX | 0 | 0 | 0 | |||
NET INCOME (LOSS) | (347.4) | 72.7 | 320.6 | |||
Statement of Comprehensive Income [Abstract] | ||||||
NET INCOME (LOSS) | (347.4) | 72.7 | 320.6 | |||
OTHER COMPREHENSIVE LOSS: | ||||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | (17.9) | (33.3) | (5.1) | |||
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes | (5.6) | 11.4 | 7.4 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | (23.5) | (21.9) | 2.3 | |||
COMPREHENSIVE INCOME | (370.9) | 50.8 | 322.9 | |||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 1,332.1 | 1,255.5 | 484.2 | $ 1,026.7 | $ 1,332.1 | $ 1,255.5 |
Receivables - trade and other | 251.2 | 212.8 | ||||
Prepaid expenses and other current assets | 22.4 | 15.5 | ||||
Total current assets | 1,300.3 | 1,560.4 | ||||
Property and equipment - gross | 8,652.4 | 8,833.9 | ||||
Less accumulated depreciation and amortization | 2,451.4 | 2,281.2 | ||||
Property and equipment - net | 6,201 | 6,552.7 | ||||
Investment in Consolidated Subsidiary | 0 | 0 | ||||
Due from affiliates | 0 | 0 | ||||
Long-term note receivable from unconsolidated subsidiary | 456 | 270.2 | 0 | |||
Investment in unconsolidated subsidiary | 41.2 | 30.9 | ||||
Other assets | 119.2 | 44.1 | ||||
TOTAL ASSETS | 8,117.7 | 8,458.3 | ||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | 201.2 | 0 | ||||
Accounts payable - trade | 122.3 | 97.2 | ||||
Deferred revenue | 16.7 | 1.1 | ||||
Accrued liabilities | 113.4 | 159.1 | ||||
Total current liabilities | 453.6 | 257.4 | ||||
Long-term debt, less current portion | 2,309.7 | 2,510.3 | ||||
Due to affiliates | 0 | 0 | ||||
Other liabilities | 307.7 | 293.6 | ||||
Deferred income taxes - net | 11.7 | 10.9 | ||||
Shareholders' equity | 5,035 | 5,386.1 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 8,117.7 | 8,458.3 | ||||
Consolidated Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used in) operations | (160.1) | 299.8 | 929.6 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | (169.2) | (100.6) | (117.6) | |||
Deposit on purchase of rigs | 0 | (7.7) | 0 | |||
Purchase of rigs | (70.8) | 0 | 0 | |||
Investment in unconsolidated subsidiary | 0 | (30) | 0 | |||
Contributions to unconsolidated subsidiary for note receivable | (271.3) | (357.7) | 0 | |||
Proceeds from sale of assets to unconsolidated subsidiary | 266 | 357.7 | 0 | |||
Repayments of note receivable from unconsolidated subsidiary | 98.5 | 87.5 | 0 | |||
Proceeds from disposals of property and equipment | 12.7 | 3.3 | 6.2 | |||
Origination of Notes Receivable from Related Parties | 0 | |||||
Proceeds From (Payments To) Divestiture (Acquisition) Of Interest In Consolidated Subsidiaries | 0 | 0 | 0 | |||
Collections on note receivable from consolidated subsidiary | 0 | 0 | ||||
Net cash provided by (used in) investing activities | (134.1) | (47.5) | (111.4) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Advances (to) from affiliates | 0 | 0 | 0 | |||
Contributions from parent/issuer | 0 | 0 | 0 | |||
Proceeds from borrowings | 0 | 0 | 500 | |||
Reductions of long-term debt | 0 | (170) | (511.8) | |||
Payment of debt extinguishment costs | 0 | 0 | (24) | |||
Dividends paid | 0 | 0 | 0 | |||
Debt issue costs | (6.1) | 0 | (8.7) | |||
Proceeds from exercise of share options | 0.1 | 0 | 0 | |||
Shares repurchased for tax withholdings on vesting of restricted share units | (5.2) | (5.7) | (5) | |||
Excess tax benefits from share-based compensation | 0 | 0 | 2.6 | |||
Net cash provided by (used in) financing activities | (11.2) | (175.7) | (46.9) | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (305.4) | 76.6 | 771.3 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,332.1 | 1,255.5 | 484.2 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,026.7 | 1,332.1 | 1,255.5 | |||
Consolidation, Eliminations [Member] | ||||||
Condensed Consolidating Income Statements [Abstract] | ||||||
REVENUE | (4.9) | (49.1) | (34.1) | |||
COSTS AND EXPENSES: | ||||||
Direct operating costs (excluding items below) | 0 | (43) | (29.1) | |||
Depreciation and amortization | 0 | 0 | 1 | |||
Selling, general and administrative | (4.9) | (6.1) | (6) | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Gain (loss) on disposals of property and equipment | 0 | 0 | 0 | |||
Material Charges And Other Operating Expenses | 0 | |||||
Material charges and other operating items | 0 | |||||
Total costs and expenses | (4.9) | (49.1) | (34.1) | |||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | 0 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | 1.9 | 0.6 | 4.1 | |||
Interest income | (1.9) | (0.6) | (4.1) | |||
Gain on extinguishment of debt | 0 | 0 | ||||
Other - net | 0 | 0 | 0 | |||
Total other (expense) - net | 0 | 0 | 0 | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | 0 | |||
Provision (benefit) for income taxes | 0 | 0 | 6.6 | |||
EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES, NET OF TAX | 155 | (290.9) | (335.7) | |||
NET INCOME (LOSS) | 155 | (290.9) | (342.3) | |||
Statement of Comprehensive Income [Abstract] | ||||||
NET INCOME (LOSS) | 155 | (290.9) | (342.3) | |||
OTHER COMPREHENSIVE LOSS: | ||||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 17.9 | 33.3 | 5.1 | |||
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes | 5.6 | (11.4) | (7.4) | |||
OTHER COMPREHENSIVE INCOME (LOSS) | 23.5 | 21.9 | (2.3) | |||
COMPREHENSIVE INCOME | 178.5 | (269) | (344.6) | |||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Receivables - trade and other | 0 | 0 | ||||
Prepaid expenses and other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Property and equipment - gross | 0 | 0 | ||||
Less accumulated depreciation and amortization | 0 | 0 | ||||
Property and equipment - net | 0 | 0 | ||||
Investment in Consolidated Subsidiary | (6,664.7) | (11,788.2) | ||||
Due from affiliates | (5,371.6) | (691.7) | ||||
Long-term note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
TOTAL ASSETS | (12,036.3) | (12,479.9) | ||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | 0 | |||||
Accounts payable - trade | 0 | 0 | ||||
Deferred revenue | 0 | 0 | ||||
Accrued liabilities | 0 | 0 | ||||
Total current liabilities | 0 | 0 | ||||
Long-term debt, less current portion | 0 | 0 | ||||
Due to affiliates | (5,371.6) | (691.7) | ||||
Other liabilities | 0 | 0 | ||||
Deferred income taxes - net | 0 | 0 | ||||
Shareholders' equity | (6,664.7) | (11,788.2) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (12,036.3) | (12,479.9) | ||||
Consolidated Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used in) operations | (50) | (15.1) | (106.5) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | 0 | 0 | 0 | |||
Deposit on purchase of rigs | 0 | |||||
Purchase of rigs | 0 | |||||
Investment in unconsolidated subsidiary | 0 | |||||
Contributions to unconsolidated subsidiary for note receivable | 0 | 0 | ||||
Proceeds from sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Repayments of note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Proceeds from disposals of property and equipment | 0 | 0 | 0 | |||
Origination of Notes Receivable from Related Parties | 6.9 | |||||
Proceeds From (Payments To) Divestiture (Acquisition) Of Interest In Consolidated Subsidiaries | 5 | (32.6) | 80.8 | |||
Collections on note receivable from consolidated subsidiary | (1.9) | (689.7) | ||||
Net cash provided by (used in) investing activities | 10 | (32.6) | (608.9) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Advances (to) from affiliates | 0 | 0 | (3.2) | |||
Contributions from parent/issuer | (5) | 32.6 | (80.8) | |||
Proceeds from borrowings | (6.9) | 0 | ||||
Reductions of long-term debt | 1.9 | 0 | 689.7 | |||
Payment of debt extinguishment costs | 0 | |||||
Dividends paid | 50 | 15.1 | 109.7 | |||
Debt issue costs | 0 | 0 | ||||
Proceeds from exercise of share options | 0 | |||||
Shares repurchased for tax withholdings on vesting of restricted share units | 0 | 0 | 0 | |||
Excess tax benefits from share-based compensation | 0 | |||||
Net cash provided by (used in) financing activities | 40 | 47.7 | 715.4 | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | 0 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | 0 | |||
Rowan Companies plc (Parent) [Member] | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issue costs | 0 | |||||
Excess tax benefits from share-based compensation | 0 | |||||
Rowan Companies plc (Parent) [Member] | Reportable Legal Entities [Member] | ||||||
Condensed Consolidating Income Statements [Abstract] | ||||||
REVENUE | 0 | 0 | 0 | |||
COSTS AND EXPENSES: | ||||||
Direct operating costs (excluding items below) | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | |||
Selling, general and administrative | 25.7 | 29.2 | 28.5 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Gain (loss) on disposals of property and equipment | 0 | 0 | 0 | |||
Material Charges And Other Operating Expenses | 8.9 | |||||
Material charges and other operating items | 0 | |||||
Total costs and expenses | 34.6 | 29.2 | 28.5 | |||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | (34.6) | (29.2) | (28.5) | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | 0 | 0 | 0 | |||
Interest income | 0 | 0 | 0 | |||
Gain on extinguishment of debt | 0 | 0 | ||||
Other - net | 4.9 | 20.4 | 21.2 | |||
Total other (expense) - net | 4.9 | 20.4 | 21.2 | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (29.7) | (8.8) | (7.3) | |||
Provision (benefit) for income taxes | 0 | 0 | 0 | |||
EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES, NET OF TAX | (317.7) | 81.5 | 327.9 | |||
NET INCOME (LOSS) | (347.4) | 72.7 | 320.6 | |||
Statement of Comprehensive Income [Abstract] | ||||||
NET INCOME (LOSS) | (347.4) | 72.7 | 320.6 | |||
OTHER COMPREHENSIVE LOSS: | ||||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | (17.9) | (33.3) | (5.1) | |||
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes | (5.6) | 11.4 | 7.4 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | (23.5) | (21.9) | 2.3 | |||
COMPREHENSIVE INCOME | (370.9) | 50.8 | 322.9 | |||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 0.2 | 3.7 | 17.3 | 2.5 | 0.2 | 3.7 |
Receivables - trade and other | 0.2 | 0 | ||||
Prepaid expenses and other current assets | 0.4 | 0.3 | ||||
Total current assets | 3.1 | 0.5 | ||||
Property and equipment - gross | 0 | 0 | ||||
Less accumulated depreciation and amortization | 0 | 0 | ||||
Property and equipment - net | 0 | 0 | ||||
Investment in Consolidated Subsidiary | 5,068.3 | 5,401.1 | ||||
Due from affiliates | 0.1 | 0.2 | ||||
Long-term note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
TOTAL ASSETS | 5,071.5 | 5,401.8 | ||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | 0 | |||||
Accounts payable - trade | 4.3 | 0.7 | ||||
Deferred revenue | 0 | 0 | ||||
Accrued liabilities | 1.2 | 0 | ||||
Total current liabilities | 5.5 | 0.7 | ||||
Long-term debt, less current portion | 0 | 0 | ||||
Due to affiliates | 28.7 | 11.2 | ||||
Other liabilities | 2.3 | 3.8 | ||||
Deferred income taxes - net | 0 | 0 | ||||
Shareholders' equity | 5,035 | 5,386.1 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,071.5 | 5,401.8 | ||||
Consolidated Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used in) operations | (11.6) | (10) | (6.4) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | 0 | 0 | 0 | |||
Deposit on purchase of rigs | 0 | |||||
Purchase of rigs | 0 | |||||
Investment in unconsolidated subsidiary | 0 | |||||
Contributions to unconsolidated subsidiary for note receivable | 0 | 0 | ||||
Proceeds from sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Repayments of note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Proceeds from disposals of property and equipment | 0 | 0 | 0 | |||
Origination of Notes Receivable from Related Parties | 0 | |||||
Proceeds From (Payments To) Divestiture (Acquisition) Of Interest In Consolidated Subsidiaries | 0 | 0 | (0.2) | |||
Collections on note receivable from consolidated subsidiary | 0 | 0 | ||||
Net cash provided by (used in) investing activities | 0 | 0 | (0.2) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Advances (to) from affiliates | 14 | 12.2 | (2) | |||
Contributions from parent/issuer | 0 | 0 | 0 | |||
Proceeds from borrowings | 5 | 0 | ||||
Reductions of long-term debt | 0 | 0 | 0 | |||
Payment of debt extinguishment costs | 0 | |||||
Dividends paid | 0 | 0 | 0 | |||
Debt issue costs | 0 | |||||
Proceeds from exercise of share options | 0.1 | |||||
Shares repurchased for tax withholdings on vesting of restricted share units | (5.2) | (5.7) | (5) | |||
Net cash provided by (used in) financing activities | 13.9 | 6.5 | (7) | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2.3 | (3.5) | (13.6) | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0.2 | 3.7 | 17.3 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 2.5 | 0.2 | 3.7 | |||
RCI (Issuer) [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Subsidiary ownership percentage by parent | 100.00% | |||||
RCI (Issuer) [Member] | Reportable Legal Entities [Member] | ||||||
Condensed Consolidating Income Statements [Abstract] | ||||||
REVENUE | $ 4.9 | 48.7 | 40.4 | |||
COSTS AND EXPENSES: | ||||||
Direct operating costs (excluding items below) | 0 | 0.5 | 12.4 | |||
Depreciation and amortization | 0 | 18.3 | 19.2 | |||
Selling, general and administrative | 0.6 | 0.2 | 5.5 | |||
Gain on sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Gain (loss) on disposals of property and equipment | 3.7 | 1.7 | 0.9 | |||
Material Charges And Other Operating Expenses | 0 | |||||
Material charges and other operating items | 0 | |||||
Total costs and expenses | 4.3 | 20.7 | 38 | |||
Equity in earnings of unconsolidated subsidiary | 0 | 0 | ||||
INCOME (LOSS) FROM OPERATIONS | 0.6 | 28 | 2.4 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | (151) | (155.8) | (155.5) | |||
Interest income | 3.7 | 3.6 | 5.1 | |||
Gain on extinguishment of debt | 1.7 | (31.2) | ||||
Other - net | (1.7) | (20.7) | (20.9) | |||
Total other (expense) - net | (149) | (171.2) | (202.5) | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (148.4) | (143.2) | (200.1) | |||
Provision (benefit) for income taxes | (87.6) | (8.2) | 5.1 | |||
EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES, NET OF TAX | 162.7 | 209.4 | 7.8 | |||
NET INCOME (LOSS) | 101.9 | 74.4 | (197.4) | |||
Statement of Comprehensive Income [Abstract] | ||||||
NET INCOME (LOSS) | 101.9 | 74.4 | (197.4) | |||
OTHER COMPREHENSIVE LOSS: | ||||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | (17.9) | (33.3) | (5.1) | |||
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes | (5.6) | 11.4 | 7.4 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | (23.5) | (21.9) | 2.3 | |||
COMPREHENSIVE INCOME | 78.4 | 52.5 | (195.1) | |||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 206.3 | 532 | 9.5 | 324.6 | 206.3 | 532 |
Receivables - trade and other | 2.6 | 1.2 | ||||
Prepaid expenses and other current assets | 8.3 | 10.7 | ||||
Total current assets | 335.5 | 218.2 | ||||
Property and equipment - gross | 247.3 | 241.9 | ||||
Less accumulated depreciation and amortization | 138 | 121.4 | ||||
Property and equipment - net | 109.3 | 120.5 | ||||
Investment in Consolidated Subsidiary | 1,596.4 | 6,387.1 | ||||
Due from affiliates | 5,357.4 | 680 | ||||
Long-term note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 109.6 | 36.4 | ||||
TOTAL ASSETS | 7,508.2 | 7,442.2 | ||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | 201.2 | |||||
Accounts payable - trade | 10.2 | 12.9 | ||||
Deferred revenue | 0 | 0 | ||||
Accrued liabilities | 76.5 | 95.7 | ||||
Total current liabilities | 287.9 | 108.6 | ||||
Long-term debt, less current portion | 2,309.7 | 2,510.3 | ||||
Due to affiliates | 8.6 | 11.4 | ||||
Other liabilities | 264.3 | 261.2 | ||||
Deferred income taxes - net | 0 | 0 | ||||
Shareholders' equity | 4,637.7 | 4,550.7 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,508.2 | 7,442.2 | ||||
Consolidated Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used in) operations | (139.6) | (11.3) | (58.8) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | (12.1) | (18.3) | (44.5) | |||
Deposit on purchase of rigs | 0 | |||||
Purchase of rigs | 0 | |||||
Investment in unconsolidated subsidiary | 0 | |||||
Contributions to unconsolidated subsidiary for note receivable | 0 | 0 | ||||
Proceeds from sale of assets to unconsolidated subsidiary | 0 | 0 | ||||
Repayments of note receivable from unconsolidated subsidiary | 0 | 0 | ||||
Proceeds from disposals of property and equipment | 1.4 | 1 | 0.4 | |||
Origination of Notes Receivable from Related Parties | (6.9) | |||||
Proceeds From (Payments To) Divestiture (Acquisition) Of Interest In Consolidated Subsidiaries | (5) | 32.6 | (80.6) | |||
Collections on note receivable from consolidated subsidiary | 1.9 | 689.7 | ||||
Net cash provided by (used in) investing activities | (20.7) | 15.3 | 565 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Advances (to) from affiliates | 278.6 | (159.7) | 58.2 | |||
Contributions from parent/issuer | 0 | 0 | 0 | |||
Proceeds from borrowings | 0 | 500 | ||||
Reductions of long-term debt | 0 | (170) | (511.8) | |||
Payment of debt extinguishment costs | (24) | |||||
Dividends paid | 0 | 0 | 0 | |||
Debt issue costs | 0 | (8.7) | ||||
Proceeds from exercise of share options | 0 | |||||
Shares repurchased for tax withholdings on vesting of restricted share units | 0 | 0 | 0 | |||
Excess tax benefits from share-based compensation | 2.6 | |||||
Net cash provided by (used in) financing activities | 278.6 | (329.7) | 16.3 | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 118.3 | (325.7) | 522.5 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 206.3 | 532 | 9.5 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 324.6 | 206.3 | 532 | |||
Other non-guarantor subsidiaries [Member] | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issue costs | 0 | |||||
Excess tax benefits from share-based compensation | 0 | |||||
Other non-guarantor subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Condensed Consolidating Income Statements [Abstract] | ||||||
REVENUE | 824.8 | 1,283.2 | 1,836.9 | |||
COSTS AND EXPENSES: | ||||||
Direct operating costs (excluding items below) | 682.7 | 727.5 | 796.4 | |||
Depreciation and amortization | 388.9 | 385.4 | 382.7 | |||
Selling, general and administrative | 74.7 | 81.3 | 74.2 | |||
Gain on sale of assets to unconsolidated subsidiary | (65.8) | (157.4) | ||||
Gain (loss) on disposals of property and equipment | 8.4 | 7.7 | 7.8 | |||
Material Charges And Other Operating Expenses | 0 | |||||
Material charges and other operating items | 32.9 | |||||
Total costs and expenses | 1,088.9 | 1,044.5 | 1,294 | |||
Equity in earnings of unconsolidated subsidiary | 10.3 | 0.9 | ||||
INCOME (LOSS) FROM OPERATIONS | (253.8) | 239.6 | 542.9 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense | (7.2) | (0.5) | (4.1) | |||
Interest income | 31.3 | 12.4 | 2.8 | |||
Gain on extinguishment of debt | 0 | 0 | ||||
Other - net | 8.8 | (0.2) | (8.6) | |||
Total other (expense) - net | 32.9 | 11.7 | (9.9) | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (220.9) | 251.3 | 533 | |||
Provision (benefit) for income taxes | 36 | 34.8 | (6.7) | |||
EQUITY IN EARNINGS (LOSSES) OF SUBSIDIARIES, NET OF TAX | 0 | 0 | 0 | |||
NET INCOME (LOSS) | (256.9) | 216.5 | 539.7 | |||
Statement of Comprehensive Income [Abstract] | ||||||
NET INCOME (LOSS) | (256.9) | 216.5 | 539.7 | |||
OTHER COMPREHENSIVE LOSS: | ||||||
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes | 0 | 0 | 0 | |||
Net reclassification adjustments for amounts recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes | 0 | 0 | 0 | |||
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | 0 | 0 | |||
COMPREHENSIVE INCOME | (256.9) | 216.5 | 539.7 | |||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 1,125.6 | 719.8 | 457.4 | 699.6 | 1,125.6 | $ 719.8 |
Receivables - trade and other | 248.4 | 211.6 | ||||
Prepaid expenses and other current assets | 13.7 | 4.5 | ||||
Total current assets | 961.7 | 1,341.7 | ||||
Property and equipment - gross | 8,405.1 | 8,592 | ||||
Less accumulated depreciation and amortization | 2,313.4 | 2,159.8 | ||||
Property and equipment - net | 6,091.7 | 6,432.2 | ||||
Investment in Consolidated Subsidiary | 0 | 0 | ||||
Due from affiliates | 14.1 | 11.5 | ||||
Long-term note receivable from unconsolidated subsidiary | 456 | 270.2 | ||||
Investment in unconsolidated subsidiary | 41.2 | 30.9 | ||||
Other assets | 9.6 | 7.7 | ||||
TOTAL ASSETS | 7,574.3 | 8,094.2 | ||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | 0 | |||||
Accounts payable - trade | 107.8 | 83.6 | ||||
Deferred revenue | 16.7 | 1.1 | ||||
Accrued liabilities | 35.7 | 63.4 | ||||
Total current liabilities | 160.2 | 148.1 | ||||
Long-term debt, less current portion | 0 | 0 | ||||
Due to affiliates | 5,334.3 | 669.1 | ||||
Other liabilities | 41.1 | 28.6 | ||||
Deferred income taxes - net | 11.7 | 10.9 | ||||
Shareholders' equity | 2,027 | 7,237.5 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 7,574.3 | $ 8,094.2 | ||||
Consolidated Statement of Cash Flows [Abstract] | ||||||
Net cash provided by (used in) operations | 41.1 | 336.2 | 1,101.3 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital expenditures | (157.1) | (82.3) | (73.1) | |||
Deposit on purchase of rigs | (7.7) | |||||
Purchase of rigs | (70.8) | |||||
Investment in unconsolidated subsidiary | (30) | |||||
Contributions to unconsolidated subsidiary for note receivable | (271.3) | (357.7) | ||||
Proceeds from sale of assets to unconsolidated subsidiary | 266 | 357.7 | ||||
Repayments of note receivable from unconsolidated subsidiary | 98.5 | 87.5 | ||||
Proceeds from disposals of property and equipment | 11.3 | 2.3 | 5.8 | |||
Origination of Notes Receivable from Related Parties | 0 | |||||
Proceeds From (Payments To) Divestiture (Acquisition) Of Interest In Consolidated Subsidiaries | 0 | 0 | 0 | |||
Collections on note receivable from consolidated subsidiary | 0 | 0 | ||||
Net cash provided by (used in) investing activities | (123.4) | (30.2) | (67.3) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Advances (to) from affiliates | (292.6) | 147.5 | (53) | |||
Contributions from parent/issuer | 5 | (32.6) | 80.8 | |||
Proceeds from borrowings | 1.9 | 0 | ||||
Reductions of long-term debt | (1.9) | 0 | (689.7) | |||
Payment of debt extinguishment costs | 0 | |||||
Dividends paid | (50) | (15.1) | (109.7) | |||
Debt issue costs | (6.1) | |||||
Proceeds from exercise of share options | 0 | |||||
Shares repurchased for tax withholdings on vesting of restricted share units | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | (343.7) | 99.8 | (771.6) | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (426) | 405.8 | 262.4 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,125.6 | 719.8 | 457.4 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 699.6 | $ 1,125.6 | $ 719.8 |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - Schlumberger [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Related party purchases | $ 41.8 | $ 20.9 | $ 28.4 |
Accounts Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Related party purchases | $ 16.5 | $ 8.3 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance | $ 905.9 | $ 869.9 | |
Valuation allowance of deferred tax assets [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 869.9 | 889.8 | $ 128.3 |
Additions, charged expense, net | 104.4 | 0 | 761.5 |
Additions, adjustments | 0 | 0 | 0 |
Deductions | (68.4) | (19.9) | 0 |
Balance at end of period | 905.9 | 869.9 | 889.8 |
Luxembourg [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance | $ 867.9 | $ 766.5 | $ 747 |