England and Wales
|
98-1023315
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
2800 Post Oak Boulevard, Suite 5450, Houston, Texas
|
77056-6189
|
(Address of principal executive offices)
|
(Zip Code)
|
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 665,637 | $ | 438,853 | ||||
Restricted cash
|
9,449 | - | ||||||
Receivables - trade and other
|
330,096 | 283,592 | ||||||
Prepaid expenses and other current assets
|
62,644 | 44,586 | ||||||
Deferred tax assets - net
|
22,903 | 27,023 | ||||||
Assets of discontinued operations
|
26,696 | 27,661 | ||||||
Total current assets
|
1,117,425 | 821,715 | ||||||
PROPERTY, PLANT AND EQUIPMENT - at cost:
|
||||||||
Drilling equipment
|
6,589,114 | 6,179,587 | ||||||
Construction in progress
|
551,768 | 711,558 | ||||||
Other property and equipment
|
133,119 | 138,177 | ||||||
Property, plant and equipment - gross
|
7,274,001 | 7,029,322 | ||||||
Less accumulated depreciation and amortization
|
1,465,025 | 1,350,609 | ||||||
Property, plant and equipment - net
|
5,808,976 | 5,678,713 | ||||||
Other assets
|
100,790 | 97,417 | ||||||
TOTAL ASSETS
|
$ | 7,027,191 | $ | 6,597,845 |
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
LIABILITIES AND EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long-term debt
|
$ | 98,844 | $ | 45,023 | ||||
Accounts payable - trade
|
74,020 | 111,082 | ||||||
Deferred revenues
|
35,997 | 36,220 | ||||||
Accrued pension and other postretirement benefits
|
23,858 | 55,244 | ||||||
Accrued compensation and related employee costs
|
35,272 | 31,205 | ||||||
Accrued income taxes
|
6,585 | 9,878 | ||||||
Accrued interest
|
27,965 | 25,477 | ||||||
Other current liabilities
|
16,621 | 9,237 | ||||||
Liabilities of discontinued operations
|
21,262 | 25,005 | ||||||
Total current liabilities
|
340,424 | 348,371 | ||||||
Long-term debt - less current maturities
|
1,392,914 | 1,089,335 | ||||||
Other liabilities
|
376,461 | 357,709 | ||||||
Deferred income taxes - net
|
477,116 | 476,443 | ||||||
Commitments and contingent liabilities (Note 6)
|
- | - | ||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Class A Ordinary Shares, $0.125 par value, 124,734,407 shares issued at June 30, 2012
|
15,592 | - | ||||||
Common stock, $0.125 par value, 150,000,000 shares authorized and
|
||||||||
127,577,530 shares issued at December 31, 2011
|
- | 15,947 | ||||||
Additional paid-in capital
|
1,359,753 | 1,478,233 | ||||||
Retained earnings
|
3,285,314 | 3,186,362 | ||||||
Cost of 549,473 and 3,996,465 treasury shares, respectively
|
(1,489 | ) | (128,884 | ) | ||||
Accumulated other comprehensive loss
|
(218,894 | ) | (225,671 | ) | ||||
Total shareholders' equity
|
4,440,276 | 4,325,987 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 7,027,191 | $ | 6,597,845 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
$ | 351,018 | $ | 223,497 | $ | 684,495 | $ | 429,463 | ||||||||
COSTS AND EXPENSES:
|
||||||||||||||||
Direct operating costs (excluding items below)
|
188,114 | 104,517 | 370,253 | 215,791 | ||||||||||||
Depreciation and amortization
|
61,330 | 40,807 | 120,296 | 78,961 | ||||||||||||
Selling, general and administrative
|
25,098 | 21,729 | 48,154 | 42,543 | ||||||||||||
Gain on disposals of property and equipment
|
(2,063 | ) | (1,391 | ) | (2,119 | ) | (1,422 | ) | ||||||||
Material charges and other operating expenses
|
8,126 | 6,100 | 12,697 | 6,100 | ||||||||||||
Total costs and expenses
|
280,605 | 171,762 | 549,281 | 341,973 | ||||||||||||
INCOME FROM OPERATIONS
|
70,413 | 51,735 | 135,214 | 87,490 | ||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest expense, net of interest capitalized
|
(12,993 | ) | (7,449 | ) | (24,250 | ) | (12,768 | ) | ||||||||
Loss on extinguishment of debt
|
(11,767 | ) | - | (11,767 | ) | - | ||||||||||
Interest income
|
146 | 32 | 260 | 61 | ||||||||||||
Other - net
|
(122 | ) | 365 | 1,215 | (719 | ) | ||||||||||
Total other income (expense) - net
|
(24,736 | ) | (7,052 | ) | (34,542 | ) | (13,426 | ) | ||||||||
INCOME FROM CONTINUING OPERATIONS
|
||||||||||||||||
BEFORE INCOME TAXES
|
45,677 | 44,683 | 100,672 | 74,064 | ||||||||||||
Provision (benefit) for income taxes
|
(5,171 | ) | 280 | (5,675 | ) | 2,866 | ||||||||||
NET INCOME FROM CONTINUING OPERATIONS
|
50,848 | 44,403 | 106,347 | 71,198 | ||||||||||||
DISCONTINUED OPERATIONS
|
||||||||||||||||
Income (loss) from discontinued operations, net of tax
|
(1,413 | ) | (3,017 | ) | (7,395 | ) | 2,260 | |||||||||
Gain on sale of discontinued operations, net of tax
|
- | 424,473 | - | 424,473 | ||||||||||||
(1,413 | ) | 421,456 | (7,395 | ) | 426,733 | |||||||||||
NET INCOME
|
$ | 49,435 | $ | 465,859 | $ | 98,952 | $ | 497,931 | ||||||||
INCOME (LOSS) PER SHARE - BASIC:
|
||||||||||||||||
Income from continuing operations
|
$ | 0.41 | $ | 0.35 | $ | 0.87 | $ | 0.57 | ||||||||
Discontinued operations
|
$ | (0.01 | ) | $ | 3.34 | $ | (0.06 | ) | $ | 3.39 | ||||||
Net income
|
$ | 0.40 | $ | 3.69 | $ | 0.81 | $ | 3.96 | ||||||||
INCOME (LOSS) PER SHARE - DILUTED:
|
||||||||||||||||
Income from continuing operations
|
$ | 0.41 | $ | 0.35 | $ | 0.86 | $ | 0.56 | ||||||||
Discontinued operations
|
$ | (0.01 | ) | $ | 3.30 | $ | (0.06 | ) | $ | 3.35 | ||||||
Net income
|
$ | 0.40 | $ | 3.65 | $ | 0.80 | $ | 3.91 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
NET INCOME
|
$ | 49,435 | $ | 465,859 | $ | 98,952 | $ | 497,931 | ||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes of $1,825 and $3,650, respectively:
|
||||||||||||||||
Amortization of net loss
|
4,087 | - | 8,174 | - | ||||||||||||
Amortization of transition obligation
|
77 | - | 154 | - | ||||||||||||
Amortization of prior service cost
|
(776 | ) | - | (1,551 | ) | - | ||||||||||
OTHER COMPREHENSIVE INCOME
|
3,388 | - | 6,777 | - | ||||||||||||
COMPREHENSIVE INCOME
|
$ | 52,823 | $ | 465,859 | $ | 105,729 | $ | 497,931 |
Six months ended June 30,
|
||||||||
2012
|
2011
|
|||||||
CASH PROVIDED BY (USED IN) OPERATIONS:
|
||||||||
Net income
|
$ | 98,952 | $ | 497,931 | ||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||
Depreciation and amortization
|
120,296 | 99,930 | ||||||
Deferred income taxes
|
4,793 | 70,692 | ||||||
Provision for pension and postretirement benefits
|
16,457 | 16,664 | ||||||
Stock-based compensation expense
|
11,767 | 10,999 | ||||||
Gain on disposals of property, plant and equipment
|
(2,119 | ) | (3,896 | ) | ||||
Gain on sale of manufacturing operations
|
- | (660,877 | ) | |||||
Postretirement benefit claims paid
|
(2,069 | ) | (1,388 | ) | ||||
Contributions to pension plans
|
(32,099 | ) | (35,837 | ) | ||||
Asset impairment charges
|
2,896 | - | ||||||
Changes in current assets and liabilities:
|
||||||||
Receivables - trade and other
|
(42,504 | ) | 9,962 | |||||
Inventories
|
- | (104,468 | ) | |||||
Prepaid expenses and other current assets
|
(18,058 | ) | 1,511 | |||||
Accounts payable
|
(14,543 | ) | 44,820 | |||||
Accrued income taxes
|
(3,293 | ) | 130,210 | |||||
Deferred revenues
|
(223 | ) | 27,603 | |||||
Billings in excess of costs and estimated profits on uncompleted contracts
|
- | 29,493 | ||||||
Other current liabilities
|
10,483 | 4,461 | ||||||
Net changes in other noncurrent assets and liabilities
|
12,075 | 8,089 | ||||||
Net cash provided by operations
|
162,811 | 145,899 | ||||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(290,773 | ) | (930,978 | ) | ||||
Proceeds from sale of manufacturing operations
|
- | 1,044,541 | ||||||
(Increase) decrease in restricted cash
|
(9,449 | ) | 15,265 | |||||
Proceeds from disposals of property, plant and equipment
|
9,247 | 4,057 | ||||||
Net cash provided by (used in) investing activities
|
(290,975 | ) | 132,885 | |||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
|
||||||||
Proceeds from borrowings
|
493,415 | - | ||||||
Repayments of borrowings
|
(139,609 | ) | (26,083 | ) | ||||
Excess tax benefits from stock-based compensation
|
1,142 | 4,664 | ||||||
Proceeds from stock options and other
|
- | 16,483 | ||||||
Net cash provided by (used in) financing activities
|
354,948 | (4,936 | ) | |||||
INCREASE IN CASH AND CASH EQUIVALENTS
|
226,784 | 273,848 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
438,853 | 437,479 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 665,637 | $ | 711,327 |
Shares outstanding
|
Class A ordinary shares/ Common stock
|
Additional paid-in capital
|
Retained earnings
|
Treasury shares
|
Accumulated other comprehensive income (loss)
|
Total shareholders' equity
|
||||||||||||||||||||||
Balance, January 1, 2011
|
126,294 | $ | 15,794 | $ | 1,433,999 | $ | 2,449,521 | $ | (1,509 | ) | $ | (145,495 | ) | $ | 3,752,310 | |||||||||||||
Shares issued under share-based compensation plans
|
1,111 | 146 | 17,815 | - | (3,132 | ) | - | 14,829 | ||||||||||||||||||||
Share-based compensation
|
- | - | 8,941 | - | - | - | 8,941 | |||||||||||||||||||||
Excess tax benefit from share-based compensation plans
|
- | - | 4,664 | - | - | - | 4,664 | |||||||||||||||||||||
Net income
|
- | - | - | 497,931 | - | - | 497,931 | |||||||||||||||||||||
Balance, June 30, 2011
|
127,405 | $ | 15,940 | $ | 1,465,419 | $ | 2,947,452 | $ | (4,641 | ) | $ | (145,495 | ) | $ | 4,278,675 | |||||||||||||
Balance, January 1, 2012
|
123,581 | $ | 15,947 | $ | 1,478,233 | $ | 3,186,362 | $ | (128,884 | ) | $ | (225,671 | ) | $ | 4,325,987 | |||||||||||||
Shares issued under share-based compensation plans
|
552 | 64 | (21,428 | ) | - | 17,908 | - | (3,456 | ) | |||||||||||||||||||
Share-based compensation
|
- | - | 10,874 | - | - | - | 10,874 | |||||||||||||||||||||
Excess tax benefit from share-based compensation plans
|
- | - | 1,142 | - | - | - | 1,142 | |||||||||||||||||||||
Retirement benefit adjustments, net of taxes of $3,650
|
- | - | - | - | - | 6,777 | 6,777 | |||||||||||||||||||||
Cancelation of treasury shares
|
- | (419 | ) | (109,068 | ) | - | 109,487 | - | - | |||||||||||||||||||
Other
|
52 | - | - | - | - | - | - | |||||||||||||||||||||
Net income
|
- | - | - | 98,952 | - | - | 98,952 | |||||||||||||||||||||
Balance, June 30, 2012
|
124,185 | $ | 15,592 | $ | 1,359,753 | $ | 3,285,314 | $ | (1,489 | ) | $ | (218,894 | ) | $ | 4,440,276 |
2012
|
2011
|
|||||||||||||||||||||||
Manufacturing
|
Drilling
|
Total
|
Manufacturing
|
Drilling
|
Total
|
|||||||||||||||||||
Three months ended June 30:
|
||||||||||||||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | 110,242 | $ | 48,445 | $ | 158,687 | ||||||||||||
Pretax income (loss)
|
$ | (1,370 | ) | $ | (804 | ) | $ | (2,174 | ) | $ | (3,113 | ) | $ | 3,770 | $ | 657 | ||||||||
Provision (benefit) for
|
||||||||||||||||||||||||
taxes on income
|
(480 | ) | (281 | ) | (761 | ) | 2,295 | 1,379 | 3,674 | |||||||||||||||
Income (loss) from discontinued
|
||||||||||||||||||||||||
operations, net of tax
|
(890 | ) | (523 | ) | (1,413 | ) | (5,408 | ) | 2,391 | (3,017 | ) | |||||||||||||
Pretax gain on sale of
|
||||||||||||||||||||||||
discontinued operations
|
- | - | - | 660,877 | - | 660,877 | ||||||||||||||||||
Provision for tax on gain on sale
|
- | - | - | 236,404 | - | 236,404 | ||||||||||||||||||
Gain on sale of discontinued
|
||||||||||||||||||||||||
operations, net of tax
|
- | - | - | 424,473 | - | 424,473 | ||||||||||||||||||
Discontinued operations, net of tax
|
$ | (890 | ) | $ | (523 | ) | $ | (1,413 | ) | $ | 419,065 | $ | 2,391 | $ | 421,456 | |||||||||
Six months ended June 30:
|
||||||||||||||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | 224,488 | $ | 92,514 | $ | 317,002 | ||||||||||||
Pretax income (loss)
|
$ | (3,980 | ) | $ | (3,440 | ) | $ | (7,420 | ) | $ | (950 | ) | $ | 9,654 | $ | 8,704 | ||||||||
Provision (benefit) for
|
||||||||||||||||||||||||
taxes on income
|
1,179 | (1,204 | ) | (25 | ) | 3,006 | 3,438 | 6,444 | ||||||||||||||||
Income (loss) from discontinued
|
||||||||||||||||||||||||
operations, net of tax
|
(5,159 | ) | (2,236 | ) | (7,395 | ) | (3,956 | ) | 6,216 | 2,260 | ||||||||||||||
Pretax gain on sale of
|
||||||||||||||||||||||||
discontinued operations
|
- | - | - | 660,877 | - | 660,877 | ||||||||||||||||||
Provision for tax on gain on sale
|
- | - | - | 236,404 | - | 236,404 | ||||||||||||||||||
Gain on sale of discontinued
|
||||||||||||||||||||||||
operations, net of tax
|
- | - | - | 424,473 | - | 424,473 | ||||||||||||||||||
Discontinued operations, net of tax
|
$ | (5,159 | ) | $ | (2,236 | ) | $ | (7,395 | ) | $ | 420,517 | $ | 6,216 | $ | 426,733 |
June 30, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
Manufacturing
|
Drilling
|
Total
|
Manufacturing
|
Drilling
|
Total
|
|||||||||||||||||||
Receivables - trade and other
|
$ | - | $ | - | $ | - | $ | - | $ | 4,000 | $ | 4,000 | ||||||||||||
Other assets
|
26,696 | - | 26,696 | 23,661 | - | 23,661 | ||||||||||||||||||
Assets of discontinued operations
|
$ | 26,696 | $ | - | $ | 26,696 | $ | 23,661 | $ | 4,000 | $ | 27,661 | ||||||||||||
Deferred revenues
|
$ | 20,122 | $ | - | $ | 20,122 | $ | 20,122 | $ | - | $ | 20,122 | ||||||||||||
Other current liabilities
|
1,140 | - | 1,140 | 1,183 | 3,700 | 4,883 | ||||||||||||||||||
Liabilities of discontinued operations
|
$ | 21,262 | $ | - | $ | 21,262 | $ | 21,305 | $ | 3,700 | $ | 25,005 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Average common shares outstanding - basic
|
123,033 | 126,252 | 122,891 | 125,793 | ||||||||||||
Effect of dilutive securities - share-based compensation
|
728 | 1,331 | 836 | 1,516 | ||||||||||||
Average common shares - diluted
|
123,761 | 127,583 | 123,727 | 127,309 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Employee and director share options
|
42 | 42 | 42 | 42 | ||||||||||||
Restricted shares
|
821 | - | - | - | ||||||||||||
Share appreciation rights
|
616 | 313 | 616 | 218 | ||||||||||||
Total potentially dilutive shares
|
1,479 | 355 | 658 | 260 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Service cost
|
$ | 2,721 | $ | 3,107 | $ | 5,442 | $ | 6,181 | ||||||||
Interest cost
|
7,569 | 7,718 | 15,138 | 15,350 | ||||||||||||
Expected return on plan assets
|
(9,367 | ) | (8,352 | ) | (18,734 | ) | (16,613 | ) | ||||||||
Recognized actuarial loss
|
7,559 | 5,774 | 13,804 | 11,515 | ||||||||||||
Amortization of prior service cost
|
(1,158 | ) | (1,665 | ) | (2,317 | ) | (3,312 | ) | ||||||||
Total net pension cost
|
$ | 7,324 | $ | 6,582 | $ | 13,333 | $ | 13,121 | ||||||||
Less: Discontinued operations
|
1,424 | 2,247 | 1,424 | 4,595 | ||||||||||||
Continuing operations
|
$ | 5,900 | $ | 4,335 | $ | 11,909 | $ | 8,526 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Service cost
|
$ | 457 | $ | 541 | $ | 915 | $ | 1,076 | ||||||||
Interest cost
|
942 | 1,053 | 1,884 | 2,094 | ||||||||||||
Recognized actuarial loss
|
80 | 73 | 161 | 146 | ||||||||||||
Amortization of transition obligation
|
119 | 165 | 237 | 328 | ||||||||||||
Amortization of prior service cost
|
(36 | ) | (51 | ) | (73 | ) | (101 | ) | ||||||||
Total other postretirement benefit cost
|
$ | 1,562 | $ | 1,781 | $ | 3,124 | $ | 3,543 | ||||||||
Less: Discontinued operations
|
- | 599 | - | 1,220 | ||||||||||||
Continuing operations
|
$ | 1,562 | $ | 1,182 | $ | 3,124 | $ | 2,323 |
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
3.158% Title XI note payable, due July 2012, secured by the
Bob Palmer
|
$ | 98,844 | $ | 104,047 | ||||
5.88% Title XI note payable, due March 2012, secured by the
Gorilla VI
|
- | 7,109 | ||||||
2.80% Title XI note payable, due October 2013, secured by the
Gorilla VII
|
- | 30,898 | ||||||
5% Senior Notes, due September 2017, net of discount (5.1% effective rate)
|
398,535 | 398,394 | ||||||
4.33% Title XI note payable, due May 2019, secured by the
Scooter Yeargain
|
- | 45,598 | ||||||
7.875% Senior Notes, due August 2019, net of discount (8.0% effective rate)
|
497,676 | 497,511 | ||||||
3.525% Title XI note payable, due May 2020, secured by the
Bob Keller
|
- | 50,801 | ||||||
4.875% Senior Notes, due June 2022, net of discount (5.0% effective rate)
|
496,703 | - | ||||||
Total long-term debt
|
1,491,758 | 1,134,358 | ||||||
Less: Current maturities
|
(98,844 | ) | (45,023 | ) | ||||
Long-term debt, excluding current maturities
|
$ | 1,392,914 | $ | 1,089,335 |
Expected delivery date
|
Total estimated project costs
|
Total costs incurred through June 30, 2012
|
Projected costs for the remainder of 2012
|
Projected costs in 2013
|
Projected costs in 2014
|
Total future costs
|
|||||||||||||||||||
Rowan Renaissance
|
Dec-13
|
$ | 749 | $ | 188 | $ | 62 | $ | 483 | $ | 16 | $ | 561 | ||||||||||||
Rowan Resolute
|
Jun-14
|
743 | 181 | 39 | 154 | 370 | 562 | ||||||||||||||||||
Rowan Reliance
|
Oct-14
|
729 | 181 | 12 | 88 | 447 | 548 | ||||||||||||||||||
$ | 2,221 | $ | 550 | $ | 113 | $ | 725 | $ | 833 | $ | 1,671 |
·
|
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.
|
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Balance Sheets
|
||||||||||||||||||||
June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 15,975 | $ | 445,444 | $ | 204,218 | $ | - | $ | 665,637 | ||||||||||
Restricted cash
|
- | 9,449 | - | - | 9,449 | |||||||||||||||
Receivables - trade and other
|
- | 49,301 | 282,666 | (1,871 | ) | 330,096 | ||||||||||||||
Other current assets
|
673 | 62,623 | 22,251 | - | 85,547 | |||||||||||||||
Assets of discontinued operations
|
- | 26,696 | - | - | 26,696 | |||||||||||||||
Total current assets
|
16,648 | 593,513 | 509,135 | (1,871 | ) | 1,117,425 | ||||||||||||||
Property, plant and equipment - gross
|
- | 1,324,628 | 5,949,373 | - | 7,274,001 | |||||||||||||||
Less accumulated depreciation and amortization
|
- | 464,789 | 1,000,236 | - | 1,465,025 | |||||||||||||||
Property, plant and equipment - net
|
- | 859,839 | 4,949,137 | - | 5,808,976 | |||||||||||||||
Investments in subsidiaries
|
4,457,060 | 2,439,264 | - | (6,896,324 | ) | - | ||||||||||||||
Due from affiliates
|
- | 2,575,183 | 1,648,874 | (4,224,057 | ) | - | ||||||||||||||
Other assets
|
- | 32,314 | 68,476 | - | 100,790 | |||||||||||||||
$ | 4,473,708 | $ | 6,500,113 | $ | 7,175,622 | $ | (11,122,252 | ) | $ | 7,027,191 | ||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||
Current maturities of long-term debt
|
$ | - | $ | 98,844 | $ | - | $ | - | $ | 98,844 | ||||||||||
Accounts payable - trade
|
1,463 | 21,347 | 51,210 | - | 74,020 | |||||||||||||||
Deferred revenues
|
- | - | 35,997 | - | 35,997 | |||||||||||||||
Accrued liabilities
|
- | 65,368 | 46,804 | (1,871 | ) | 110,301 | ||||||||||||||
Liabilities of discontinued operations
|
- | 21,262 | - | - | 21,262 | |||||||||||||||
Total current liabilities
|
1,463 | 206,821 | 134,011 | (1,871 | ) | 340,424 | ||||||||||||||
Long-term debt - less current maturities
|
- | 1,392,914 | - | - | 1,392,914 | |||||||||||||||
Due to affiliates
|
31,969 | - | 4,192,088 | (4,224,057 | ) | - | ||||||||||||||
Other liabilities
|
- | 307,729 | 68,732 | - | 376,461 | |||||||||||||||
Deferred income taxes - net
|
- | 135,589 | 341,527 | - | 477,116 | |||||||||||||||
Shareholders' equity
|
4,440,276 | 4,457,060 | 2,439,264 | (6,896,324 | ) | 4,440,276 | ||||||||||||||
$ | 4,473,708 | $ | 6,500,113 | $ | 7,175,622 | $ | (11,122,252 | ) | $ | 7,027,191 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Balance Sheets
|
||||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 21,472 | $ | 184,677 | $ | 232,704 | $ | - | $ | 438,853 | ||||||||||
Receivables - trade and other
|
- | 33,380 | 250,212 | - | 283,592 | |||||||||||||||
Other current assets
|
- | 46,137 | 25,472 | - | 71,609 | |||||||||||||||
Assets of discontinued operations
|
- | 27,661 | - | - | 27,661 | |||||||||||||||
Total current assets
|
21,472 | 291,855 | 508,388 | - | 821,715 | |||||||||||||||
Property, plant and equipment - gross
|
- | 1,290,526 | 5,738,796 | - | 7,029,322 | |||||||||||||||
Less accumulated depreciation and amortization
|
- | 441,949 | 908,660 | - | 1,350,609 | |||||||||||||||
Property, plant and equipment - net
|
- | 848,577 | 4,830,136 | - | 5,678,713 | |||||||||||||||
Investments in subsidiaries
|
- | 1,121,573 | - | (1,121,573 | ) | - | ||||||||||||||
Due from affiliates
|
- | 3,732,488 | 333,357 | (4,065,845 | ) | - | ||||||||||||||
Other assets
|
- | 30,581 | 66,836 | - | 97,417 | |||||||||||||||
$ | 21,472 | $ | 6,025,074 | $ | 5,738,717 | $ | (5,187,418 | ) | $ | 6,597,845 | ||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||
Current maturities of long-term debt
|
$ | - | $ | 22,464 | $ | 22,559 | $ | - | $ | 45,023 | ||||||||||
Accounts payable - trade
|
730 | 43,091 | 67,261 | - | 111,082 | |||||||||||||||
Deferred revenues
|
- | - | 36,220 | - | 36,220 | |||||||||||||||
Accrued liabilities
|
- | 102,785 | 28,256 | - | 131,041 | |||||||||||||||
Liabilities of discontinued operations
|
- | 25,005 | - | - | 25,005 | |||||||||||||||
Total current liabilities
|
730 | 193,345 | 154,296 | - | 348,371 | |||||||||||||||
Long-term debt - less current maturities
|
- | 1,073,887 | 15,448 | - | 1,089,335 | |||||||||||||||
Due to affiliates
|
1,151 | - | 4,064,694 | (4,065,845 | ) | - | ||||||||||||||
Other liabilities
|
- | 303,117 | 54,592 | - | 357,709 | |||||||||||||||
Deferred income taxes - net
|
- | 128,738 | 347,705 | - | 476,443 | |||||||||||||||
Shareholders' equity
|
19,591 | 4,325,987 | 1,101,982 | (1,121,573 | ) | 4,325,987 | ||||||||||||||
$ | 21,472 | $ | 6,025,074 | $ | 5,738,717 | $ | (5,187,418 | ) | $ | 6,597,845 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Income Statements
|
||||||||||||||||||||
Three months ended June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
REVENUES
|
$ | - | $ | 39,375 | $ | 344,282 | $ | (32,639 | ) | $ | 351,018 | |||||||||
COSTS AND EXPENSES:
|
||||||||||||||||||||
Direct operating costs (excluding items below)
|
162 | 7,677 | 212,914 | (32,639 | ) | 188,114 | ||||||||||||||
Depreciation and amortization
|
- | 13,791 | 47,539 | - | 61,330 | |||||||||||||||
Selling, general and administrative
|
4,034 | 3,881 | 17,183 | - | 25,098 | |||||||||||||||
Loss (gain) on disposals of property and equipment
|
- | 1,374 | (3,437 | ) | - | (2,063 | ) | |||||||||||||
Material charges and other operating expenses
|
8,126 | (6 | ) | 6 | - | 8,126 | ||||||||||||||
Total costs and expenses
|
12,322 | 26,717 | 274,205 | (32,639 | ) | 280,605 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS
|
(12,322 | ) | 12,658 | 70,077 | - | 70,413 | ||||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||||||
Interest expense, net of interest capitalized
|
- | (12,906 | ) | (87 | ) | - | (12,993 | ) | ||||||||||||
Interest income
|
5 | 98 | 43 | - | 146 | |||||||||||||||
Loss on debt extinguishment
|
- | (11,180 | ) | (587 | ) | - | (11,767 | ) | ||||||||||||
Other - net
|
2 | 98 | (222 | ) | - | (122 | ) | |||||||||||||
Total other income (expense) - net
|
7 | (23,890 | ) | (853 | ) | - | (24,736 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
||||||||||||||||||||
BEFORE INCOME TAXES
|
(12,315 | ) | (11,232 | ) | 69,224 | - | 45,677 | |||||||||||||
(Benefit) provision for income taxes
|
- | 3,324 | (8,495 | ) | - | (5,171 | ) | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
(12,315 | ) | (14,556 | ) | 77,719 | - | 50,848 | |||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX
|
- | (1,413 | ) | - | - | (1,413 | ) | |||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX
|
61,750 | 77,719 | - | (139,469 | ) | - | ||||||||||||||
NET INCOME
|
$ | 49,435 | $ | 61,750 | $ | 77,719 | $ | (139,469 | ) | $ | 49,435 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Income Statements
|
||||||||||||||||||||
Three months ended June 30, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
REVENUES
|
$ | - | $ | 29,640 | $ | 200,782 | $ | (6,925 | ) | $ | 223,497 | |||||||||
COSTS AND EXPENSES:
|
||||||||||||||||||||
Direct operating costs (excluding items below)
|
- | 21,868 | 89,574 | (6,925 | ) | 104,517 | ||||||||||||||
Depreciation and amortization
|
- | 14,629 | 26,178 | - | 40,807 | |||||||||||||||
Selling, general and administrative
|
- | 5,707 | 16,022 | - | 21,729 | |||||||||||||||
Loss (gain) on disposals of property and equipment
|
- | (89 | ) | (1,302 | ) | - | (1,391 | ) | ||||||||||||
Material charges and other operating expenses
|
- | 6,100 | - | - | 6,100 | |||||||||||||||
Total costs and expenses
|
- | 48,215 | 130,472 | (6,925 | ) | 171,762 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS
|
- | (18,575 | ) | 70,310 | - | 51,735 | ||||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||||||
Interest expense, net of interest capitalized
|
- | (7,449 | ) | (298 | ) | 298 | (7,449 | ) | ||||||||||||
Interest income
|
- | 300 | 30 | (298 | ) | 32 | ||||||||||||||
Other - net
|
- | 106 | 259 | - | 365 | |||||||||||||||
Total other income (expense) - net
|
- | (7,043 | ) | (9 | ) | - | (7,052 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
||||||||||||||||||||
BEFORE INCOME TAXES
|
- | (25,618 | ) | 70,301 | - | 44,683 | ||||||||||||||
(Benefit) provision for income taxes
|
- | (11,668 | ) | 11,948 | - | 280 | ||||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
- | (13,950 | ) | 58,353 | - | 44,403 | ||||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX
|
- | 424,473 | (3,017 | ) | - | 421,456 | ||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX
|
- | 55,336 | - | (55,336 | ) | - | ||||||||||||||
NET INCOME
|
$ | - | $ | 465,859 | $ | 55,336 | $ | (55,336 | ) | $ | 465,859 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Income Statements
|
||||||||||||||||||||
Six months ended June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
REVENUES
|
$ | - | $ | 81,263 | $ | 671,057 | $ | (67,825 | ) | $ | 684,495 | |||||||||
COSTS AND EXPENSES:
|
||||||||||||||||||||
Direct operating costs (excluding items below)
|
162 | 14,289 | 423,627 | (67,825 | ) | 370,253 | ||||||||||||||
Depreciation and amortization
|
- | 26,673 | 93,623 | - | 120,296 | |||||||||||||||
Selling, general and administrative
|
4,675 | 9,910 | 33,569 | - | 48,154 | |||||||||||||||
Loss (gain) on disposals of property and equipment
|
- | 1,541 | (3,660 | ) | - | (2,119 | ) | |||||||||||||
Material charges and other operating expenses
|
9,801 | 1,357 | 1,539 | - | 12,697 | |||||||||||||||
Total costs and expenses
|
14,638 | 53,770 | 548,698 | (67,825 | ) | 549,281 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS
|
(14,638 | ) | 27,493 | 122,359 | - | 135,214 | ||||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||||||
Interest expense, net of interest capitalized
|
- | (23,959 | ) | (291 | ) | - | (24,250 | ) | ||||||||||||
Interest income
|
10 | 141 | 109 | - | 260 | |||||||||||||||
Loss on debt extinguishment
|
- | (11,180 | ) | (587 | ) | - | (11,767 | ) | ||||||||||||
Other - net
|
2 | 134 | 1,079 | - | 1,215 | |||||||||||||||
Total other income (expense) - net
|
12 | (34,864 | ) | 310 | - | (34,542 | ) | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
||||||||||||||||||||
BEFORE INCOME TAXES
|
(14,626 | ) | (7,371 | ) | 122,669 | - | 100,672 | |||||||||||||
(Benefit) provision for income taxes
|
- | 5,452 | (11,127 | ) | - | (5,675 | ) | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
(14,626 | ) | (12,823 | ) | 133,796 | - | 106,347 | |||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX
|
- | (7,395 | ) | - | - | (7,395 | ) | |||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX
|
113,578 | 133,796 | - | (247,374 | ) | - | ||||||||||||||
NET INCOME
|
$ | 98,952 | $ | 113,578 | $ | 133,796 | $ | (247,374 | ) | $ | 98,952 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Condensed Consolidating Income Statements
|
||||||||||||||||||||
Six months ended June 30, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
REVENUES
|
$ | - | $ | 61,947 | $ | 399,191 | $ | (31,675 | ) | $ | 429,463 | |||||||||
COSTS AND EXPENSES:
|
||||||||||||||||||||
Direct operating costs (excluding items below)
|
- | 47,950 | 199,516 | (31,675 | ) | 215,791 | ||||||||||||||
Depreciation and amortization
|
- | 29,133 | 49,828 | - | 78,961 | |||||||||||||||
Selling, general and administrative
|
- | 11,255 | 31,288 | - | 42,543 | |||||||||||||||
Loss (gain) on disposals of property and equipment
|
- | (117 | ) | (1,305 | ) | - | (1,422 | ) | ||||||||||||
Material charges and other operating expenses
|
- | 6,100 | - | - | 6,100 | |||||||||||||||
Total costs and expenses
|
- | 94,321 | 279,327 | (31,675 | ) | 341,973 | ||||||||||||||
INCOME (LOSS) FROM OPERATIONS
|
- | (32,374 | ) | 119,864 | - | 87,490 | ||||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||||||
Interest expense, net of interest capitalized
|
- | (12,768 | ) | (2,651 | ) | 2,651 | (12,768 | ) | ||||||||||||
Interest income
|
- | 2,633 | 79 | (2,651 | ) | 61 | ||||||||||||||
Other - net
|
- | 46 | (765 | ) | - | (719 | ) | |||||||||||||
Total other income (expense) - net
|
- | (10,089 | ) | (3,337 | ) | - | (13,426 | ) | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
||||||||||||||||||||
BEFORE INCOME TAXES
|
- | (42,463 | ) | 116,527 | - | 74,064 | ||||||||||||||
(Benefit) provision for income taxes
|
- | (12,725 | ) | 15,591 | - | 2,866 | ||||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
- | (29,738 | ) | 100,936 | - | 71,198 | ||||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX
|
- | 424,473 | 2,260 | - | 426,733 | |||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX
|
- | 103,196 | - | (103,196 | ) | - | ||||||||||||||
NET INCOME
|
$ | - | $ | 497,931 | $ | 103,196 | $ | (103,196 | ) | $ | 497,931 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Statements of Comprehensive Income
|
||||||||||||||||||||
Three months ended June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET INCOME
|
$ | 49,435 | $ | 61,750 | $ | 77,719 | $ | (139,469 | ) | $ | 49,435 | |||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes
|
||||||||||||||||||||
Amortization of net loss
|
- | 4,087 | - | - | 4,087 | |||||||||||||||
Amortization of transition obligation
|
- | 77 | - | - | 77 | |||||||||||||||
Amortization of prior service credit
|
- | (776 | ) | - | - | (776 | ) | |||||||||||||
OTHER COMPREHENSIVE INCOME
|
- | 3,388 | - | - | 3,388 | |||||||||||||||
COMPREHENSIVE INCOME
|
$ | 49,435 | $ | 65,138 | $ | 77.719 | $ | (139,469 | ) | $ | 52,823 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Statements of Comprehensive Income
|
||||||||||||||||||||
Three months ended June 30, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET INCOME
|
$ | - | $ | 465,859 | $ | 55,336 | $ | (55,336 | ) | $ | 465,859 | |||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes
|
||||||||||||||||||||
Amortization of net loss
|
- | - | - | - | - | |||||||||||||||
Amortization of transition obligation
|
- | - | - | - | - | |||||||||||||||
Amortization of prior service credit
|
- | - | - | - | - | |||||||||||||||
OTHER COMPREHENSIVE INCOME
|
- | - | - | - | - | |||||||||||||||
COMPREHENSIVE INCOME
|
$ | - | $ | 465,859 | $ | 55,336 | $ | (55,336 | ) | $ | 465,859 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Statements of Comprehensive Income
|
||||||||||||||||||||
Six months ended June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET INCOME
|
$ | 98,952 | $ | 113,578 | $ | 133,796 | $ | (247,374 | ) | $ | 98,952 | |||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes
|
||||||||||||||||||||
Amortization of net loss
|
- | 8,174 | - | - | 8,174 | |||||||||||||||
Amortization of transition obligation
|
- | 154 | - | - | 154 | |||||||||||||||
Amortization of prior service credit
|
- | (1,551 | ) | - | - | (1,551 | ) | |||||||||||||
OTHER COMPREHENSIVE INCOME
|
- | 6,777 | - | - | 6,777 | |||||||||||||||
COMPREHENSIVE INCOME
|
$ | 98,952 | $ | 120,355 | $ | 133,796 | $ | (247,374 | ) | $ | 105,729 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Statements of Comprehensive Income
|
||||||||||||||||||||
Six months ended June 30, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET INCOME
|
$ | - | $ | 497,931 | $ | 103,196 | $ | (103,196 | ) | $ | 497,931 | |||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||||||
Pension and other postretirement benefit adjustments, net of income taxes
|
||||||||||||||||||||
Amortization of net loss
|
- | - | - | - | - | |||||||||||||||
Amortization of transition obligation
|
- | - | - | - | - | |||||||||||||||
Amortization of prior service credit
|
- | - | - | - | - | |||||||||||||||
OTHER COMPREHENSIVE INCOME
|
- | - | - | - | - | |||||||||||||||
COMPREHENSIVE INCOME
|
$ | - | $ | 497,931 | $ | 103,196 | $ | (103,196 | ) | $ | 497,931 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Consolidated Statements of Cash Flows
|
||||||||||||||||||||
Six months ended June 30, 2012
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | (14,565 | ) | $ | 58,243 | $ | 210,133 | $ | (91,000 | ) | $ | 162,811 | ||||||||
Investing activities:
|
||||||||||||||||||||
Property, plant and equipment additions
|
- | (20,718 | ) | (270,055 | ) | - | (290,773 | ) | ||||||||||||
Proceeds from disposals of property, plant and equip
|
- | 5,653 | 3,594 | - | 9,247 | |||||||||||||||
Investments in consolidated subsidiaries
|
- | (6,669 | ) | - | 6,669 | - | ||||||||||||||
Change in restricted cash balance
|
- | (9,449 | ) | - | - | (9,449 | ) | |||||||||||||
Net cash used in investing activities
|
- | (31,183 | ) | (266,461 | ) | 6,669 | (290,975 | ) | ||||||||||||
Financing activities:
|
||||||||||||||||||||
Repayments of borrowings
|
- | (101,602 | ) | (38,007 | ) | - | (139,609 | ) | ||||||||||||
Advances (to) from affiliates
|
9,068 | (159,248 | ) | 150,180 | - | - | ||||||||||||||
Contributions from parent
|
- | - | 6,669 | (6,669 | ) | - | ||||||||||||||
Proceeds from borrowings
|
- | 493,415 | - | - | 493,415 | |||||||||||||||
Dividends paid
|
- | - | (91,000 | ) | 91,000 | - | ||||||||||||||
Excess tax benefits from stock-based compensation
|
- | 1,142 | - | - | 1,142 | |||||||||||||||
Net cash provided by (used in) financing activities
|
9,068 | 233,707 | 27,842 | 84,331 | 354,948 | |||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(5,497 | ) | 260,767 | (28,486 | ) | - | 226,784 | |||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
21,472 | 184,677 | 232,704 | - | 438,853 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 15,975 | $ | 445,444 | $ | 204,218 | $ | - | $ | 665,637 |
Rowan Companies plc and Subsidiaries
|
||||||||||||||||||||
Consolidated Statements of Cash Flows
|
||||||||||||||||||||
Six months ended June 30, 2011
|
||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Rowan UK
|
Rowan Delaware
|
Other non-guarantor subsidiaries
|
Consolidating adjustments
|
Consolidated
|
||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$ | - | $ | 27,443 | $ | 118,456 | $ | - | $ | 145,899 | ||||||||||
Investing activities:
|
||||||||||||||||||||
Property, plant and equipment additions
|
- | (37,624 | ) | (893,354 | ) | - | (930,978 | ) | ||||||||||||
Proceeds from disposals of property, plant and equip
|
- | - | 4,057 | - | 4,057 | |||||||||||||||
Proceeds from sales of manufacturing operations, net
|
- | 1,044,541 | - | - | 1,044,541 | |||||||||||||||
Investments in consolidated subsidiaries
|
- | (491,373 | ) | - | 491,373 | - | ||||||||||||||
Change in restricted cash balance
|
- | - | 15,265 | - | 15,265 | |||||||||||||||
Net cash provided by (used in) investing activities
|
- | 515,544 | (874,032 | ) | 491,373 | 132,885 | ||||||||||||||
Financing activities:
|
||||||||||||||||||||
Repayments of borrowings
|
- | (11,232 | ) | (14,851 | ) | - | (26,083 | ) | ||||||||||||
Advances (to) from affiliates
|
- | (179,415 | ) | 179,415 | - | - | ||||||||||||||
Contribution from parent
|
- | - | 491,373 | (491,373 | ) | - | ||||||||||||||
Proceeds from stock option and debenture plans
|
- | 16,483 | - | - | 16,483 | |||||||||||||||
Excess tax benefits from stock-based compensation
|
- | 4,664 | - | - | 4,664 | |||||||||||||||
Net cash provided by (used in) financing activities
|
- | (169,500 | ) | 655,937 | (491,373 | ) | (4,936 | ) | ||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
- | 373,487 | (99,639 | ) | - | 273,848 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
- | 255,061 | 182,418 | - | 437,479 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | - | $ | 628,548 | $ | 82,779 | $ | - | $ | 711,327 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues (in thousands):
|
||||||||||||||||
North Sea
|
$ | 126,619 | $ | 56,452 | $ | 249,600 | $ | 102,983 | ||||||||
Middle East
|
102,778 | 65,286 | 189,656 | 133,091 | ||||||||||||
U.S. Gulf of Mexico
|
52,864 | 80,970 | 122,501 | 147,269 | ||||||||||||
Other international
|
59,062 | 19,601 | 106,365 | 40,359 | ||||||||||||
Subtotal - Day rate revenues
|
341,323 | 222,309 | 668,122 | 423,702 | ||||||||||||
Other revenues
(1)
|
9,695 | 1,188 | 16,373 | 5,761 | ||||||||||||
Total
|
$ | 351,018 | $ | 223,497 | $ | 684,495 | $ | 429,463 | ||||||||
Revenue producing days:
|
||||||||||||||||
North Sea
|
540 | 289 | 1,080 | 544 | ||||||||||||
Middle East
|
786 | 528 | 1,382 | 1,055 | ||||||||||||
U.S. Gulf of Mexico
|
444 | 682 | 1,033 | 1,243 | ||||||||||||
Other international
|
447 | 169 | 810 | 303 | ||||||||||||
Total
|
2,217 | 1,668 | 4,305 | 3,145 | ||||||||||||
Average day rate:
(2)
|
||||||||||||||||
North Sea
|
$ | 234,480 | $ | 195,336 | $ | 231,111 | $ | 189,307 | ||||||||
Middle East
|
$ | 130,761 | $ | 123,648 | $ | 137,233 | $ | 126,153 | ||||||||
U.S. Gulf of Mexico
|
$ | 119,063 | $ | 118,724 | $ | 118,588 | $ | 118,479 | ||||||||
Other international
|
$ | 132,130 | $ | 115,982 | $ | 131,315 | $ | 133,198 | ||||||||
Total
|
$ | 153,957 | $ | 133,279 | $ | 155,197 | $ | 134,722 | ||||||||
Utilization (by location):
(3)
|
||||||||||||||||
North Sea
|
99 | % | 99 | % | 99 | % | 97 | % | ||||||||
Middle East
|
79 | % | 58 | % | 69 | % | 58 | % | ||||||||
U.S. Gulf of Mexico
|
61 | % | 75 | % | 65 | % | 70 | % | ||||||||
Other international
|
82 | % | 62 | % | 89 | % | 61 | % | ||||||||
Total
|
79 | % | 70 | % | 77 | % | 68 | % | ||||||||
Utilization (by classification):
(3)
|
||||||||||||||||
High-specification jack-up
(4)
|
93 | % | 84 | % | 94 | % | 83 | % | ||||||||
Premium jack-up
(5)
|
63 | % | 60 | % | 57 | % | 58 | % | ||||||||
Conventional jack-up
|
33 | % | 33 | % | 33 | % | 25 | % | ||||||||
(1) Other revenues, which are primarily revenues received for contract reimbursable costs, are excluded from the computation of average day rate.
|
||||||||||||||||
(2) Average day rate is computed by dividing revenues by the number of revenue-producing days.
|
||||||||||||||||
(3) Utilization is the number of revenue-producing days divided by the aggregate number of days rigs were available to work.
|
||||||||||||||||
(4) We define high-specification jack-ups as those that have hook load capacity of at least two million pounds.
|
||||||||||||||||
(5) We define premium jack-ups as those cantilevered rigs capable of operating in water depths of 300 feet or more.
|
Quarter ended June 30, 2012
|
Quarter ended June 30, 2011
|
|||||||||||||||
Amount
|
% of Revenues
|
Amount
|
% of Revenues
|
|||||||||||||
Revenues
|
$ | 351.0 | 100 | % | $ | 223.5 | 100 | % | ||||||||
Operating costs
|
(188.1 | ) | -54 | % | (104.6 | ) | -47 | % | ||||||||
Depreciation expense
|
(61.3 | ) | -17 | % | (40.8 | ) | -18 | % | ||||||||
Selling, general and administrative expenses
|
(25.1 | ) | -7 | % | (21.7 | ) | -10 | % | ||||||||
Net gain on property disposals
|
2.0 | 1 | % | 1.4 | 1 | % | ||||||||||
Material charges and other operating expenses
|
(8.1 | ) | -2 | % | (6.1 | ) | -3 | % | ||||||||
Operating income
|
$ | 70.4 | 20 | % | $ | 51.7 | 23 | % |
Increase
|
||||
(Decrease)
|
||||
Rig additions
|
$ | 81.5 | ||
Higher utilization of existing rigs
|
19.7 | |||
Higher average day rates for existing rigs
|
17.8 | |||
Revenues for reimbursable costs and other, net
|
8.5 | |||
Net increase
|
$ | 127.5 |
Increase
|
||||
(Decrease)
|
||||
Operating costs attributable to fleet additions
|
$ | 36.8 | ||
Higher operating costs of rigs previously in shipyard or in transit
|
19.6 | |||
Expansion of foreign shorebases
|
10.5 | |||
Reimbursable expenses
|
8.6 | |||
Other, net
|
8.0 | |||
Net increase
|
$ | 83.5 |
Six months ended June 30, 2012
|
Six months ended June 30, 2011
|
|||||||||||||||
Amount
|
% of Revenues
|
Amount
|
% of Revenues
|
|||||||||||||
Revenues
|
$ | 684.5 | 100 | % | $ | 429.5 | 100 | % | ||||||||
Operating costs
|
(370.2 | ) | -54 | % | (215.8 | ) | -50 | % | ||||||||
Depreciation expense
|
(120.3 | ) | -18 | % | (79.0 | ) | -18 | % | ||||||||
Selling, general and administrative expenses
|
(48.2 | ) | -7 | % | (42.5 | ) | -10 | % | ||||||||
Net gain on property disposals
|
2.1 | 0 | % | 1.4 | 0 | % | ||||||||||
Material charges and other operating expenses
|
(12.7 | ) | -2 | % | (6.1 | ) | -1 | % | ||||||||
Operating income
|
$ | 135.2 | 20 | % | $ | 87.5 | 20 | % |
Increase
|
||||
(Decrease)
|
||||
Rig additions
|
$ | 177.4 | ||
Higher utilization of existing rigs
|
45.7 | |||
Higher average day rates for existing rigs
|
21.3 | |||
Revenues for reimbursable costs and other, net
|
10.6 | |||
Net increase
|
$ | 255.0 |
Increase
|
||||
(Decrease)
|
||||
Operating costs attributable to fleet additions
|
$ | 76.9 | ||
Higher operating costs of rigs previously in shipyard or in transit
|
36.0 | |||
Expansion of foreign shorebases
|
17.8 | |||
Reimbursable expenses
|
10.9 | |||
Other, net
|
12.8 | |||
Net increase
|
$ | 154.4 |
July 31, 2012
|
February 27, 2012
|
|||||||
Norway
|
$ | 1,328 | $ | 1,302 | ||||
Middle East
|
898 | 949 | ||||||
West Africa | 683 | - | ||||||
U.K.
|
517 | 344 | ||||||
Southeast Asia
|
206 | 57 | ||||||
Egypt
|
156 | 172 | ||||||
U.S. Gulf of Mexico | 146 | 109 | ||||||
Trinidad
|
98 | 132 | ||||||
Total backlog
|
$ | 4,032 | $ | 3,065 |
2012
|
$ | 512 | ||
2013
|
1,219 | |||
2014
|
965 | |||
2015
|
671 | |||
2016
|
528 | |||
2017
|
137 | |||
Total backlog
|
$ | 4,032 |
June 30, 2012
|
Dec. 31, 2011
|
|||||||
Cash and cash equivalents
|
$ | 665.6 | $ | 438.9 | ||||
Current assets (excluding assets of discontinued operations)
|
$ | 1,090.7 | $ | 794.1 | ||||
Current liabilities (excluding liabilities of discontinued operations)
|
$ | 319.2 | $ | 323.4 | ||||
Current ratio (excluding assets and liabilities of discontinued operations)
|
3.42 | 2.46 | ||||||
Current maturities of long-term debt
|
$ | 98.8 | $ | 45.0 | ||||
Long-term debt, less current maturities
|
$ | 1,392.9 | $ | 1,089.3 | ||||
Shareholders' equity
|
$ | 4,440.3 | $ | 4,326.0 | ||||
Long-term debt/total capitalization
|
0.24 | 0.20 |
Six months ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Net cash provided by operating activities
|
$ | 162.8 | $ | 145.9 | ||||
Proceeds from borrowings, net of issue costs
|
493.4 | - | ||||||
Proceeds from disposals of property and equipment
|
9.3 | 4.0 | ||||||
Proceeds from stock option exercises
|
- | 16.5 | ||||||
Proceeds from sale of manufacturing operations
|
- | 1,044.5 | ||||||
Capital expenditures
|
(290.8 | ) | (931.0 | ) | ||||
Repayments of borrowings
|
(139.6 | ) | (26.1 | ) | ||||
(Increase) decrease in restricted cash
|
(9.4 | ) | 15.3 | |||||
Other
|
1.1 | 4.7 | ||||||
Total net sources
|
$ | 226.8 | $ | 273.8 |
·
|
$88.8 million towards construction of the
Rowan Renaissance, Rowan Resolute
and
Rowan Reliance;
|
·
|
$15.9 million for completion of construction of the
Joe Douglas;
|
·
|
$164.6 million for improvements to the existing fleet, including contractually required modifications; and
|
·
|
$21.5 million for rig equipment inventory and other.
|
•
|
drilling permit and operations delays, moratoria or suspensions, new and future regulatory, legislative or permitting requirements (including requirements related to certification and testing of blow-out preventers and other equipment or otherwise impacting operations), future lease sales, changes in laws, rules and regulations that have or may impose increased financial responsibility, additional oil spill abatement contingency plan capability requirements and other governmental actions that may result in claims of force majeure or otherwise adversely affect our existing drilling contracts;
|
|||
•
|
governmental regulatory, legislative and permitting requirements affecting drilling operations in the areas in which our rigs operate;
|
|||
•
|
changes in worldwide rig supply and demand, competition or technology, including as a result of delivery of newbuild drilling rigs;
|
|||
|
•
|
future levels of drilling activity and expenditures, whether as a result of global capital markets and liquidity, prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs;
|
||
•
|
downtime and other risks associated with rig operations, operating hazards, or rig relocations, including rig or equipment failure, damage and other unplanned repairs, the limited availability of transport vessels, hazards, self-imposed drilling limitations and other delays due to weather conditions and the limited availability or high cost of insurance coverage for certain offshore perils or associated removal of wreckage or debris;
|
|||
|
•
|
possible cancellation or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons;
|
||
•
|
risks inherent to shipyard rig construction, repair or enhancement, unexpected delays in equipment delivery and engineering or design issues following shipyard delivery, or changes in the dates our rigs will enter a shipyard, be delivered, return to service or enter service;
|
|||
•
|
actual contract commencement dates;
|
|||
•
|
operating hazards, including environmental or other liabilities, risks, expenses or losses, whether related to storm or hurricane damage, losses or liabilities (including wreckage or debris removal) or otherwise;
|
|||
|
•
|
our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to competition from other contract drillers, labor regulations or otherwise;
|
||
•
|
governmental action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, mass strikes, or an escalation or additional outbreak of armed hostilities or other crises in oil or natural gas producing areas of the Middle East or other geographic areas, which may result in expropriation, nationalization, confiscation or deprivation of our assets or result in claims by our customers of a force majeure situation;
|
|||
•
|
terrorism, piracy or military action impacting our operations, assets or financial performance;
|
|||
•
|
the outcome of legal proceedings, or other claims or contract disputes, including any inability to collect receivables or resolve significant contractual or day rate disputes, any purported renegotiation, nullification, cancellation or breach of contracts with customers or other parties and any failure to negotiate or complete definitive contracts following announcements of receipt of letters of intent;
|
|||
•
|
potential long-lived asset impairments; and
|
|||
•
|
costs and uncertainties associated with the redomestication, or changes in foreign or domestic laws that could reduce or eliminate the anticipated benefits of the transaction.
|
2.1
|
Agreement and Plan of Merger and Reorganization by and between Rowan Companies, Inc. and Rowan Mergeco, LLC, dated February 27, 2012 (incorporated by reference to Annex A of the Registration Statement on Form S-4 filed by Rowan Companies Limited on February 27, 2012 with the Securities and Exchange Commission (File No. 1-5491)).
|
2.2
|
Amendment No. 1 to Agreement and Plan of Merger and Reorganization, dated April 12, 2012 (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on April 12, 2012).
|
3.1
|
Articles of Association of Rowan Companies plc (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
4.1
|
Form of Share Certificate for Rowan Companies plc (incorporated by reference to Exhibit 4.5 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
4.2
|
Indenture for Senior Debt Securities dated as of July 21, 2009 between Rowan Companies, Inc. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.4 of the Registration Statement on Form S-3 filed on May 16, 2012 (File No. 333-181455)).
|
4.3
|
Third Supplemental Indenture, dated as of May 4, 2012, among Rowan Companies, Inc., Rowan Companies plc and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.4 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
4.4
|
Fourth Supplemental Indenture dated as of May 21, 2012, among Rowan Companies, Inc., Rowan Companies plc and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed on May 21, 2012).
|
4.5
|
Form of 4.875% Senior Note due 2022 (incorporated by reference to Exhibit 4.3 of the Company’s Current Report on Form 8-K filed on May 21, 2012).
|
10.1
|
Amendment to the Rowan Companies, Inc. Restated 1988 Nonqualified Stock Option Plan, effective May 4, 2012 (incorporated by reference to Exhibit 10.9 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.2
|
Amendment to the Rowan Companies, Inc. 1998 Nonemployee Director Stock Option Plan, effective May 4, 2012 (incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.3
|
Amendment to the 2005 Rowan Companies, Inc. Long-Term Incentive Plan, effective May 4, 2012 (incorporated by reference to Exhibit 10.11 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.4
|
2009 Rowan Companies, Inc. Incentive Plan (as Amended and Restated and as Assumed and Adopted by the Company, effective May 4, 2012) (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.5
|
Form of Share Appreciation Right Notice pursuant to the 2009 Rowan Companies, Inc. Incentive Plan (as Amended and Restated and as Assumed and Adopted by the Company, effective May 4, 2012) (incorporated by reference to Exhibit 10.8 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.6
|
Form of Restricted Share Unit Notice pursuant to the 2009 Rowan Companies, Inc. Incentive Plan (as Amended and Restated and as Assumed and Adopted by the Company, effective May 4, 2012) (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.7
|
Form of Restricted Share Notice pursuant to the 2009 Rowan Companies, Inc. Incentive Plan (as Amended and Restated and as Assumed and Adopted by the Company, effective May 4, 2012) (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.8*
|
Form of Non-Employee Director Restricted Share Unit Notice pursuant to 2009 Rowan Companies, Inc. Incentive Plan (as Amended and Restated and as Assumed and Adopted by Rowan Companies plc, effective May 4, 2012).
|
10.9
|
Amendment No. 2 to Credit Agreement, dated as of May 4, 2012, among Rowan Companies, Inc., Rowan Companies plc and Wells Fargo Bank, National Association, as Swingline Lender, Issuing Lender, a Lender and Administrative Agent (includes the conformed copy of the Credit Agreement, dated as of September 16, 2010) (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.10
|
Guaranty, dated as of May 4, 2012, by Rowan Companies plc, as Guarantor, in favor of Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.11
|
Deed of Assumption, dated May 4, 2012, executed by the Company (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.12
|
Form of Supplement to Change in Control Agreement (incorporated by reference to Exhibit 10.12 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
10.13
|
Form of Deed of Indemnity of Rowan Companies plc (incorporated by reference to Exhibit 10.13 of the Company’s Current Report on Form 8-K filed on May 4, 2012).
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
ROWAN COMPANIES PLC
|
||
(Registrant)
|
||
Date: August 3, 2012
|
/s/ W. H. WELLS
|
|
W. H. Wells
|
||
Senior Vice President,
|
||
Chief Financial Officer and Treasurer
|
||
Date: August 3, 2012
|
/s/ GREGORY M. HATFIELD
|
|
Gregory M. Hatfield
|
||
Vice President and Controller
|
||
(Chief Accounting Officer)
|
1.
|
Grant of Restricted Share Units
.
Rowan Companies plc, a public limited company incorporated under English law (the “Company”), has assumed and adopted the 2009 Rowan Companies, Inc. Incentive Plan, as amended and restated (the “Plan”), and adopted Annex 1 to the Plan. To carry out the purposes of the Plan and subject to the conditions described in this Notice and the Plan, the Company hereby grants to (the “Participant”), Restricted Share Units (“RSUs”), effective as of , 2012 (the “Grant Date”), with respect to the Participant’s annual service period commencing , 2012 (the “2012 Grant”). All capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan; references in this Notice to the Plan shall be taken to include Annex 1 to the Plan; the Plan is incorporated herein by reference as a part of this Notice.
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2.
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Vesting
. The 2012 Grant shall be fully vested and nonforfeitable as of the earlier of (i) the date of the next following annual general meeting of the Company’s shareholders or (ii) one year from the date of the 2012 Grant; provided, however, that if the Participant resigns or is removed from the Board prior to such date, such 2012 Grant shall be forfeited.
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3.
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E
stablishment of Accounts
. The Company shall maintain an appropriate bookkeeping record (the “RSU Account”) that from time to time will reflect the Participant’s name, the number of vested and unvested RSUs credited to the Participant and the Fair Market Value of the RSUs credited to the Participant. Fair Market Value of a RSU shall be deemed to be equal to the Fair Market Value of one Share. The 2012 Grant shall be credited to the Participant’s RSU Account effective as of the Grant Date.
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4.
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Dividends
. As of each date on or after the Grant Date that cash dividends are paid with respect to Shares, to the extent that the Participant has any outstanding RSUs credited to his or her RSU Account, the Participant shall have an additional amount credited to his or her RSU Account equal to the number of RSUs (rounded up to the nearest whole number) having a Fair Market Value equal to the dollar amount of dividends paid per Share multiplied by the number of RSUs credited to the Participant’s RSU Account as of the payment date of such dividend. Any equivalent amount credited to the Participant at the same time as dividends are paid or credited on Shares shall be provided to compensate the Participant for the fact that actual dividends or other distributions are not paid or issued with respect to the Shares subject to the RSUs until the payment of the RSUs as described in Section 9 below. Accordingly, such amount shall be considered earnings from the Participant’s directorship and shall not constitute actual dividends.
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5.
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Responsibility for Taxes
. The Participant acknowledges that, regardless of any action by the Company, the ultimate liability for all income tax, social insurance, fringe benefits tax, payment on account or other tax-related items related to the Participant's participation in the Plan and legally applicable to the Participant (“Tax-Related Items”) is and remains the Participant's responsibility and may exceed the amount actually withheld by the Company. The Participant further acknowledges that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vesting or payment of the RSUs, the subsequent sale of any shares acquired pursuant to the RSUs and the receipt of any dividends or dividend equivalent amounts, and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant's liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, the Participant acknowledges that the Company may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
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(a)
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withholding from any cash payment to be made to the Participant by the Company, including any cash payment made pursuant to the RSUs;
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(b)
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withholding from proceeds of the sale of Shares acquired upon payment of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent);
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(c)
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selling or transferring to the employee benefit trust established in connection with the Company’s adoption and assumption of the Plan a number of Shares that would otherwise be issued upon payment of the RSUs; and
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(d)
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If the RSUs are paid in cash,
withholding in Shares to be issued upon payment of the RSUs;
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6.
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Reorganization of the Company
. The existence of this Notice shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; any merger or consolidation of the Company; any issuance of bonds, debentures, preferred or prior preference shares ahead of or affecting the Shares or the rights thereof; the dissolution or liquidation of the Company; any sale or transfer of all or any part of its assets or business; or any other corporate act or proceeding whether of a similar character or otherwise.
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7.
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Recapitalization Events
. In the event of share dividends, spin-offs of assets or other extraordinary dividends, share splits, combinations of shares, recapitalizations, mergers, consolidations, reorganizations, liquidations, issuances of rights or warrants and similar transactions or events involving the Company (“Recapitalization Events”), then for all purposes references herein to Shares or to RSUs shall mean and include all securities or other property (other than cash) that holders of Shares are entitled to receive in respect of Shares by reason of each successive Recapitalization Event, which securities or other property (other than cash) shall be treated in the same manner and shall be subject to the same restrictions as the underlying RSUs.
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8.
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Amount of Payment
. As of the final termination date of the Participant’s service on the Board, the aggregate Fair Market Value of all vested RSUs then credited to the Participant’s RSU Account shall be calculated by multiplying the Fair Market Value of a Share on such date times the number of RSUs then credited to the Participant’s RSU Account.
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9.
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Time and Form of Payment
. Payment to the Participant of amounts due hereunder shall be made in Shares, or at the discretion of the Committee in cash in a lump sum, on the 30th day following the final termination date of the Participant’s services on the Board. If payment is made in Shares, Participant may be required to pay the nominal value for such Shares.
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10.
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Death Prior to Payment
. In the event that the Participant dies prior to payment, all RSUs shall become fully vested and immediately payable to the legal representative of the Participant’s estate or the person who acquires rights under this Notice by bequest or inheritance or by reason of the death of the Participant, subject to Section 11 below
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11.
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Participant’s Directorship
. In consideration of this grant of RSUs, the Participant covenants with the Company that he or she shall remain a Director for at least six (6) months from the Date of Grant.
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12.
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Transfer of RSUs
. Except as provided herein, all rights granted hereunder shall not be transferable other than by will or the laws of descent and distribution. Any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance of the RSUs that does not satisfy the requirements set forth hereunder shall be void and unenforceable against the Company.
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13.
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Severability
. In the event that any provision of this Notice shall be held illegal, invalid, or unenforceable for any reason, such provision shall be fully severable and shall not affect the remaining provisions of this Notice, and this Notice shall be construed and enforced as if the illegal, invalid, or unenforceable provision had never been included herein.
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14.
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Certain Restrictions
. By accepting the RSUs granted under this Notice, the Participant acknowledges that he or she will enter into such written representations, warranties and agreements and execute such documents as the Company may reasonably request in order to comply with the terms of this Notice or the Plan, or securities laws or any other applicable laws, rules or regulations.
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15.
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Recoupment
. Notwithstanding any provision of this Notice to the contrary, the Committee may, in its sole discretion:
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(a)
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recoup from the Participant all or a portion of the Shares issued or cash paid under this Notice if the Company’s reported financial or operating results are materially and negatively restated within five years of the grant or payment of such amounts; and
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(b)
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recoup from the Participant if, in the Committee’s judgment, the Participant engaged in conduct which was fraudulent, negligent or not in good faith, and which disrupted, damaged, impaired or interfered with the business, reputation or Employees of the Company or its Affiliates or which caused a subsequent adjustment or restatement of the Company’s reported financial statements, all or a portion of the Shares issued or cash paid under this Notice within five years of such conduct.
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16.
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Amendment and Termination
. Except as otherwise provided in the Plan or this Notice, no amendment of this Notice that adversely affects the Participant’s rights hereunder in any material respect or termination of this Notice shall be made by the Company without the written consent of the Participant.
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17.
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Data Privacy
. The Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Notice and any other grant materials by the Company for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.
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The Participant understands that the Company may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, title, any shares or directorships held in the Company, details of all RSUs or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).
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The Participant understands that Data will be transferred to such share plan service provider as may be selected by the Company, which is assisting the Company with the implementation, administration and management of the Plan. The recipients of Data may be located in the United States, the United Kingdom, or elsewhere, and the recipients’ country may have different data privacy laws and protections than the Participant’s country. The Participant may request a list with the names and addresses of any potential recipients of Data by contacting the Company’s [insert contact]. The Participant authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Company’s [insert contact]. Further, the Participant is providing his or her consents herein on a purely voluntary basis. The Participant’s refusal or withdrawal of his or her consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant may contact the Company’s [insert contact].
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18.
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Code Section 409A; No Guarantee of Tax Consequences
. This award of RSUs is intended to comply with Code Section 409A and the provisions hereof shall be interpreted and administered consistently with such intent. The Company makes no commitment or guarantee to the Participant that any federal or state tax treatment will apply or be available to any person eligible for benefits under this Notice.
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19.
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Binding Effect
. This Notice shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under the Participant.
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20.
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Governing Law
. This Notice shall be governed by, and construed in accordance with, the laws of the England and Wales, without regard to conflict of laws principles.
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21.
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Imposition of Other Requirements
. The Company reserves the right to impose other requirements on the Participant's participation in the Plan, on the RSUs and on any Shares issued under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
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22.
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Waiver
. The Participant acknowledges that a waiver by the Company of breach of any provision of this Notice shall not operate or be construed as a waiver of any other provision of this Notice, or of any subsequent breach by the Participant or any other participant in the Plan.
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1.
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I have reviewed this Form 10-Q of Rowan Companies plc;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 3, 2012
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/s/ W. MATT RALLS
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W. Matt Ralls
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President and Chief Executive Officer
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1.
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I have reviewed this Form 10-Q of Rowan Companies plc;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: August 3, 2012
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/s/ W. H. WELLS
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W. H. Wells
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Senior Vice President, Chief Financial Officer and Treasurer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented.
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Date: August 3, 2012
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/s/ W. MATT RALLS
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W. Matt Ralls
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President and Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented.
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Date: August 3, 2012
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/s/ W. H. WELLS
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W. H. Wells
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Senior Vice President, Chief Financial Officer and Treasurer
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