8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2019

Ensco Rowan plc

(Exact name of registrant as specified in its charter)

England and Wales (State or Other Jurisdiction of Incorporation or Organization)	1-8097 (Commission File Number)	98-0635229 (I.R.S. Employer Identification Number)
	6 Chesterfield Gardens London, England W1J5BQ (Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: 44 (0) 20 7659 4660

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Ticker Symbol(s)	Name of each exchange on which registered
Class A ordinary shares, U.S. $0.40 par value	ESV	New York Stock Exchange
4.70% Senior Notes due 2021	ESV/21	New York Stock Exchange
4.50% Senior Notes due 2024	ESV24	New York Stock Exchange
8.00% Senior Notes due 2024	ESV24A	New York Stock Exchange
5.20% Senior Notes due 2025	ESV25A	New York Stock Exchange
7.75% Senior Notes due 2026	ESV26	New York Stock Exchange
5.75% Senior Notes due 2044	ESV44	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 8.01 Other Events

As reported in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) by Ensco Rowan plc (the “Company”) on April 11, 2019, the Company completed its combination with Rowan Companies plc (“Rowan”) on such date, whereby the Company acquired the entire issued share capital of Rowan (the “Transaction”). The Company is filing this Current Report on Form 8-K to provide (i) the March 31, 2019 quarterly financial statements forRowan, as the Transaction was completed prior to the date that Rowan would have been required to file its March 31, 2019 financial statements on Form 10-Q, and the accompanying notes thereto, as set forth in Exhibit 99.1 to this report, including the required eXtensible Business Reporting Language (“XBRL”) exhibits, and (ii) the unaudited pro forma financial statements of the Company as of and for the three months ended March 31, 2019 and the accompanying notes thereto, as set forth in Exhibit 99.2 to this report and presented in accordance with Article 11 of Regulation S-X.

The financial statements included as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K are incorporated in this Item 8.01 by reference and should be read in conjunction with Rowan’s Annual Report on Form 10-K filed on February 27, 2019, the Company’s Annual Report on Form 10-K filed on February 28, 2019 and Quarterly Report on Form 10-Q filed on May 2, 2019, and any additional Current Reports filed by Rowan or the Company with the SEC on or after the filing of its respective Form 10-K.

Item 9.01 Financial Statements and Exhibits.

(a)    Exhibits

Exhibit Number	Exhibit Description
99.1	Financial Statements for Rowan as of and for the three months ended March 31, 2019.
99.2	Unaudited Pro Forma Financial Statements for the Company as of and for the three months ended March 31, 2019.
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.

SIGNATURES

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

Dated:  July 29, 2019	Ensco Rowan plc
	By:	/s/ Tommy E. Darby
		Tommy E. Darby
		Vice President and Controller

EX-99.1

Exhibit 99.1

Note: This Exhibit 99.1 provides the March 31, 2019 quarterly financial statements for Rowan Companies plc.

GLOSSARY OF TERMS

The following frequently used abbreviations or acronyms are used in this exhibit 99.1 as defined below:

Abbreviation/Acronym	Definition
2022 Notes	The Company's 4.875% Senior Notes due 2022
ARO	Saudi Aramco Rowan Offshore Drilling Company
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
Company	Rowan Companies Limited (formerly Rowan Companies plc) together with its wholly-owned subsidiaries
Ensco	EnscoRowan plc, a public limited company organized under the laws of England and Wales
Existing Credit Agreement	The Company's amended and restated senior unsecured revolving credit agreement entered into with a group of lenders on May 22, 2018, which matures January 23, 2021
Existing Credit Facility	Commitments in the amount of $310.7 million provided by a group of lenders under the Existing Credit Agreement
FASB	Financial Accounting Standards Board
IRS	U.S. Internal Revenue Service
New Credit Agreement	The Company's senior unsecured revolving credit agreement entered into with a group of lenders on May 22, 2018, which matures May 22, 2023
New Credit Facility	Commitments in the amount of $955 million provided by a group of lenders under the New Credit Agreement
P-Units	Performance Units
Rowan plc	Rowan Companies Limited (formerly Rowan Companies plc)
RSAs	Restricted Share Awards
RSUs	Restricted Share Units
SARs	Share Appreciation Rights
Saudi Aramco	Saudi Arabian Oil Company
SEC	The United States Securities and Exchange Commission
Transaction	The transactions contemplated by the Transaction Agreement, pursuant to which each of the issued and outstanding Class A ordinary shares of the Company were exchanged for 2.750 Class A ordinary shares of Ensco pursuant to a court-sanctioned scheme of arrangement under Part 26 of the U.K. Companies Act 2006
Transaction Agreement	The agreement, dated October 7, 2018, by and between the Company and Ensco, pursuant to which the Company and Ensco effected a "merger-of-equals" transaction
U.K.	United Kingdom
U.S.	United States
US GAAP	Accounting principles generally accepted in the United States of America
US GOM	United States Gulf of Mexico
USD	U.S. Dollar

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

	Three months ended March 31,
	2019			2018
REVENUE	$	176.5		$	211.2
COSTS AND EXPENSES:
Direct operating costs (excluding items below)	161.8			157.4
Depreciation and amortization	92.7			97.9
Selling, general and administrative	21.1			25.6
Loss on disposals of property and equipment	0.3			1.3
Merger and related costs	3.5			—
Total costs and expenses	279.4			282.2
Equity in earnings (losses) of unconsolidated subsidiary	7.1			(1.3		)
LOSS FROM OPERATIONS	(95.8		)	(72.3		)
OTHER INCOME (EXPENSE):
Interest expense	(39.3		)	(38.5		)
Interest income	11.1			6.9
Other - net	2.8			(2.2		)
Total other (expense) - net	(25.4		)	(33.8		)
LOSS BEFORE INCOME TAXES	(121.2		)	(106.1		)
Provision for income taxes	8.0			6.2
NET LOSS	$	(129.2	)	$	(112.3	)
NET LOSS PER SHARE - BASIC AND DILUTED	$	(1.01	)	$	(0.89	)
WEIGHTED AVERAGE SHARES - BASIC AND DILUTED	127.3			126.5

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In millions)

(Unaudited)

	Three months ended March 31,
	2019			2018
NET LOSS	$	(129.2	)	$	(112.3	)
OTHER COMPREHENSIVE INCOME (LOSS):
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income tax (benefit) expense of $(0.1) and $0.7 for the three months ended March 31, 2019 and 2018, respectively (see Notes 6 and 10).	(0.5		)	2.8
COMPREHENSIVE LOSS	$	(129.7	)	$	(109.5	)

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

	March 31, 2019			December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	936.8		$	1,026.7
Receivables - trade and other	207.4			251.2
Prepaid expenses and other current assets	24.3			22.4
Total current assets	1,168.5			1,300.3
PROPERTY AND EQUIPMENT:
Drilling equipment	8,560.4			8,510.7
Other property and equipment	142.0			141.7
Property and equipment - gross	8,702.4			8,652.4
Less accumulated depreciation and amortization	2,540.9			2,451.4
Property and equipment - net	6,161.5			6,201.0
Long-term note receivable from unconsolidated subsidiary	454.5			456.0
Investment in unconsolidated subsidiary	47.0			41.2
Other assets	128.6			119.2
	$	7,960.1		$	8,117.7
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	201.3		$	201.2
Accounts payable - trade	96.7			122.3
Deferred revenue	11.3			16.7
Accrued liabilities	115.7			113.4
Total current liabilities	425.0			453.6
Long-term debt	2,309.7			2,309.7
Other liabilities	306.8			307.7
Deferred income taxes - net	12.0			11.7
Commitments and contingent liabilities (Note 7)
SHAREHOLDERS' EQUITY:
Class A Ordinary Shares, $0.125 par value; 128.2 and 128.2 shares issued, respectively; 127.7 and 127.1 shares outstanding, respectively	16.0			16.0
Additional paid-in capital	1,500.4			1,501.5
Retained earnings	3,680.0			3,810.5
Cost of 0.5 and 1.1 treasury shares, respectively	(4.2		)	(7.9		)
Accumulated other comprehensive loss	(285.6		)	(285.1		)
Total shareholders' equity	4,906.6			5,035.0
	$	7,960.1		$	8,117.7

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In millions)

(Unaudited)

	Shares outstanding	Class A ordinary shares/ Common stock		Additional paid-in capital			Retained earnings			Treasury shares			Accumulated other comprehensive income (loss)			Total shareholders' equity
Balance, January 1, 2018	126.3	$	16.0	$	1,488.6		$	4,109.7		$	(9.3	)	$	(218.9	)	$	5,386.1
Net shares issued (acquired) under share-based compensation plans	0.6	—		(4.8		)	—			1.4			—			(3.4		)
Share-based compensation	—	—		4.5			—			—			—			4.5
Adoption of new accounting standards	—	—		—			51.1			—			(45.6		)	5.5
Retirement benefit adjustments, net of tax expense of $0.7	—	—		—			—			—			2.8			2.8
Net loss	—	—		—			(112.3		)	—			—			(112.3		)
Balance, March 31, 2018	126.9	$	16.0	$	1,488.3		$	4,048.5		$	(7.9	)	$	(261.7	)	$	5,283.2
Balance, January 1, 2019	127.1	$	16.0	$	1,501.5		$	3,810.5		$	(7.9	)	$	(285.1	)	$	5,035.0
Net shares issued (acquired) under share-based compensation plans	0.6	—		(5.2		)	—			3.7			—			(1.5		)
Share-based compensation	—	—		4.1			—			—			—			4.1
Adoption of new accounting standard by unconsolidated subsidiary (see Note 4)	—	—		—			(1.3		)	—			—			(1.3		)
Retirement benefit adjustments, net of tax benefit of $0.1	—	—		—			—			—			(0.5		)	(0.5		)
Net loss	—	—		—			(129.2		)	—			—			(129.2		)
Balance, March 31, 2019	127.7	$	16.0	$	1,500.4		$	3,680.0		$	(4.2	)	$	(285.6	)	$	4,906.6

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three months ended March 31,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(129.2	)	$	(112.3	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	92.7			97.9
Equity in (earnings) losses of unconsolidated subsidiary	(7.1		)	1.3
Deferred income taxes	2.1			0.1
Pension and other postretirement benefits (income) expense	(1.8		)	3.2
Share-based compensation expense	7.8			4.3
Loss on disposals of property and equipment	0.3			1.3
Other	0.6			6.0
Changes in current assets and liabilities:
Receivables - trade and other	47.7			8.8
Prepaid expenses and other current assets	(2.0		)	0.2
Accounts payable	(9.0		)	0.6
Accrued income taxes	(4.0		)	(4.1		)
Other current liabilities	3.3			(7.9		)
Other postretirement benefit claims paid	(0.2		)	(0.5		)
Contributions to pension plans	(1.3		)	(5.6		)
Deferred revenue	(6.8		)	3.0
Net changes in other noncurrent assets and liabilities	(11.2		)	(7.4		)
Net cash used in operating activities	(18.1		)	(11.1		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(70.4		)	(35.4		)
Purchase of rigs	—			(70.8		)
Repayments of note receivable from unconsolidated subsidiary	1.5			1.3
Proceeds from disposals of property and equipment	0.4			1.3
Net cash used in investing activities	(68.5		)	(103.6		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased for tax withholdings on vesting of restricted share units	(3.3		)	(3.3		)
Net cash used in financing activities	(3.3		)	(3.3		)
DECREASE IN CASH AND CASH EQUIVALENTS	(89.9		)	(118.0		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,026.7			1,332.1
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	936.8		$	1,214.1

See Notes to Unaudited Condensed Consolidated Financial Statements.

6

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 1 – Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies

Rowan Companies Limited (formerly Rowan Companies plc), a private 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 March 31, 2019, the Company operated in three segments: Deepwater, Jack-ups and ARO, the Company's 50/50 joint venture with Saudi Aramco. The Deepwater segment included four ultra-deepwater drillships. The Jack-ups segment was composed of 21 self-elevating jack-up rigs and included the impact of the various arrangements with ARO (see discussion in Note 4). As of March 31, 2019, 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 (leased rigs to ARO) and the Mediterranean Sea. As of March 31, 2019, 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 third quarter of 2019.

The financial statements included in this Quarterly Report are presented in USD and include the accounts of Rowan plc and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” and “Company” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

The financial statements included in this Quarterly Report have been prepared in accordance with US GAAP and the applicable rules and regulations of the SEC. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. The financial information included in this report is unaudited, but management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Merger 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 would 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 was to be 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 reserved 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).

On April 11, 2019 (the "Transaction Date"), the merger with Ensco was completed pursuant to the Transaction Agreement, as amended. As a result of the Transaction, Rowan shareholders received 2.750 Ensco Class A Ordinary shares for each Rowan Class A ordinary share, representing a value of $43.67 per Rowan share based on a closing price of $15.88 per Ensco share on April 10, 2019, the last trading day before the Transaction Date. Total consideration delivered in the Rowan Transaction consisted of 88.3 million Ensco shares with an aggregate value of $1.4 billion, inclusive of $2.6 million for the estimated fair value of replacement employee equity awards. On the Transaction Date, Ensco's name was changed to Ensco Rowan plc. Additionally, in connection with the closing of the Transaction with Ensco on April 11, 2019, the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility.

Recently Adopted Accounting Pronouncements

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

7

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 took advantage of various practical expedients, provided by the ASC 842, including:

• use of the transition package of practical expedients which, among other things, allowed 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.

Upon adoption of ASU 2016-02 on January 1, 2019 as a lessee, the Company recognized lease liabilities and right-of-use assets of $14.5 million and $13.2 million, respectively. See Note 3 for additional information.

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 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.

New Accounting Pronouncements - to be adopted

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.

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

Note 2 – 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 Condensed Consolidated Balance Sheets (in millions):

	Balance Sheet Classification	March 31, 2019		December 31, 2018
Deferred Contract Costs and Demobilization Contract Assets
Current	Prepaid expenses and other current assets	$	8.6	$	8.7
Noncurrent	Other assets	0.3		0.4
		$	8.9	$	9.1
Deferred Revenue - Contract liabilities
Current	Deferred revenue	$	11.3	$	16.7
Noncurrent	Other liabilities	17.7		19.1
		$	29.0	$	35.8

Presented in the table below are the changes in deferred contract costs during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Contract Costs Asset
Beginning balance	$	3.6
Less: amortization	2.7
Ending balance	$	0.9

9

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Presented in the table below are the changes in contract assets during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Contract Assets - Demobilization
Beginning balance	$	5.5
Plus: contractual additions	2.5
Ending balance	$	8.0

The Company expects to recognize $3.4 million of additional demobilization into revenue during the remainder of 2019 which would increase our Contract Assets.

Presented in the table below are the changes in deferred revenue during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Revenue - Deferred mobilization and upgrade/modification revenue
Beginning balance	$	35.8
Plus: contractual additions	2.4
Less: amortization	9.2
Ending balance (1)	$	29.0
(1) Includes $14.3 million of deferred revenue related to capital expenditures for the Bess Brants andEarnest Dees (both leased to ARO) to be received as reimbursement from ARO. A receivable of $14.3 million is included in Receivables - trade and other on the Condensed Consolidated Balance Sheet at March 31, 2019.

Estimated future amortization at March 31, 2019 of the Company's deferred revenue and deferred contract costs to be recognized over the expected recognition period is set forth in the following table (in millions):

	Remaining
	2019		2020		2021		2022		Total
Amortization of deferred revenue	$	9.0	$	9.6	$	8.5	$	1.9	$	29.0
Amortization of deferred contract costs	0.5		0.2		0.2		—		0.9

No impairment losses were recognized on contract assets during the three months ended March 31, 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.

Note 3 – Leases

The Company has operating leases for office space, maintenance and warehouse facilities, equipment and employee housing. The Company accounts for the lease component and the non-lease component as a single lease component. The Company's leases have remaining lease terms of less than one year to 10 years, some of which include options to extend. Additionally, the Company subleases certain office space to third parties.

The components of lease expense are as follows (in millions):

	Three months ended March 31, 2019
Long-term operating lease cost	$	1.1
Short-term operating lease cost	0.2
Sublease income	(0.1		)
Total operating lease cost	$	1.2

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Supplemental balance sheet information related to the Company's operating leases is as follows (in millions, except lease term and discount rate):

	March 31, 2019
Operating lease right-of-use assets (included in Other assets on the Condensed Consolidated Balance Sheet)	$	12.3
Current lease liability (included in Accrued liabilities on the Condensed Consolidated Balance Sheet)	$	3.5
Long-term lease liability (included in Other liabilities on the Condensed Consolidated Balance Sheet)	10.2
Total operating lease liabilities	$	13.7
Weighted-average remaining lease term (in years)	6.95
Estimated incremental borrowing cost on a secured basis for similar terms as the underlying lease.	8.25		%

For the three months ended March 31, 2019, cash paid for amounts included in the measurement of the Company's operating lease liabilities was $1.1 million.

Maturities of lease liabilities as of March 31, 2019 were as follows (in millions):

Year Ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	3.5
2020	3.3
2021	1.5
2022	1.4
2023	1.4
Thereafter	7.2
Total lease payments	18.3
Less imputed interest	(4.6		)
Total	$	13.7

Note 4 – Equity Method Investments and Variable Interest Entities

On November 21, 2016, Rowan and Saudi Aramco, through their subsidiaries, entered into a Shareholders’ Agreement to create a 50/50 joint venture, known as ARO. ARO commenced operations on October 17, 2017, and owns, managed and operates offshore drilling units in Saudi Arabia. The Company accounts for its interest in ARO using the equity method of accounting and only recognizes its portion of equity earnings in the Company's condensed consolidated financial statements. ARO is a variable interest entity; however, the Company is not the primary beneficiary and therefore does not consolidate ARO. The Company's judgment regarding the level of influence over ARO included considering key factors such as: each company's ownership interest, representation on the board of managers of ARO, ability to direct activities that most significantly impact ARO's economic performance, as well as the ability to influence policy-making decisions.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Summarized financial information

Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions):

	Three months ended March 31, 2019			Three months ended March 31, 2018
REVENUE	$	136.0		$	58.3
Direct operating costs (excluding items below)	85.1			33.4
Depreciation and amortization	13.4			16.6
Selling, general and administrative	5.2			6.4
Loss on disposals of property and equipment	0.6			0.1
INCOME FROM OPERATIONS	31.7			1.8
Interest expense, net	(9.7		)	(5.6		)
Provision (benefit) for income taxes	7.7			(1.2		)
NET INCOME (LOSS)	$	14.3		$	(2.6	)
Rowan's equity in earnings (losses) from ARO	$	7.1		$	(1.3	)

	March 31, 2019		December 31, 2018
Current assets	$	367.8	$	348.9
Non-current assets	925.8		727.0
Total assets	$	1,293.6	$	1,075.9
Current liabilities	$	183.0	$	112.2
Non-current liabilities	1,053.4		949.1
Total liabilities	$	1,236.4	$	1,061.3

Related party transactions

The Company's investment in ARO was decreased by $1.3 million as of January 1, 2019 to reflect its share of the impact ARO's adoption of ASC 842 had on their retained earnings.

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. Interest is being recognized as a part of Interest income in the Company's Condensed Consolidated Statements of Operations and totaled approximately $5.7 million and $2.8 million for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, the Company had an interest receivable from ARO of $5.7 million which is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet.

In conjunction with the establishment of ARO, the Company entered into a series of agreements with ARO including: a Transition Services Agreement, Secondment Agreement and Lease Agreements. There is also an agreement between the Company and ARO, pursuant to which ARO agreed to reimburse the Company for certain capital expenditures related to four rigs leased to ARO. At March 31, 2019, $14.3 million for the Bess Brants and Earnest Dees capital expenditures reimbursementis included in Receivables - trade and other on the Condensed Consolidated Balance Sheet. During the three months ended March 31, 2019, the Company received $14.3 million in capital expenditures reimbursement from ARO for the EXLI and EXL IV. 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):

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Three months ended March 31, 2019		Three months ended March 31, 2018
Secondment and other Revenue - Jack-ups	$	20.9	$	14.3
Lease and Related Revenue - Jack-ups	21.4		—
Transition Services Revenue - Unallocated	4.9		9.0
Total Revenue received from ARO	$	47.2	$	23.3
Proceeds from equipment sales to ARO (a)	$	0.3	$	1.2
(a) For the the three months ended March 31. 2019, no gain or loss was recognized.For the three months ended March 31, 2018, a $0.6 million loss was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statement of Operations.

Total accounts receivable from ARO totaled approximately $50.8 million and $68.8 million as of March 31, 2019 and December 31, 2018, respectively, and are included in Receivables - trade and other on the Condensed Consolidated Balance Sheets.

The Company also entered into a Rig Management Agreement pursuant to which ARO provided certain rig management services for Rowan's rigs while they are 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 in 2019. The Company recognized $10.6 million for the three months ended March 31, 2018, in Direct operating cost in the Condensed Consolidated Statements of Operations related to these rig management services. Additionally, ARO may sell equipment or supplies to Rowan or purchase such for Rowan, in which case ARO is provided reimbursement. Such transactions were minimal for the three months ended March 31, 2019 and 2018.

Accounts payable to ARO totaled approximately $3.0 million and $6.1 million as of March 31, 2019 and December 31, 2018, respectively.

The following summarizes the total assets and liabilities as reflected in the Company's Condensed Consolidated Balance Sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any receivable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO.

	March 31, 2019		December 31, 2018
Total assets	$	558.0	$	566.0
Total liabilities	3.0		6.1
Maximum exposure to loss	$	555.0	$	559.9

Note 5 – Earnings Per Share

Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional weighted effect of dilutive securities outstanding during the period, which includes 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.

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):

	Three months ended March 31,
	2019	2018
Share options and appreciation rights	1.4	1.5
P-Units, RSAs and RSUs	5.6	4.6
Total potentially dilutive shares	7.0	6.1

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ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 6 – Pension and Other Postretirement Benefits

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

The components of net periodic pension cost were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	0.5		$	2.7
Interest cost (2)	7.3			6.3
Expected return on plan assets (2)	(9.1		)	(9.4		)
Amortization of net loss (2)	2.3			7.8
Amortization of prior service credit (2)	—			(1.2		)
Net periodic pension cost	$	1.0		$	6.2
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

The components of net periodic cost of other postretirement benefits were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	—		$	—
Interest cost (2)	0.1			0.1
Amortization of net loss (2)	0.1			0.2
Amortization of prior service credit (2)	(3.0		)	(3.3		)
Total other postretirement benefit cost	$	(2.8	)	$	(3.0	)
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

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).

During the three months ended March 31, 2019, the Company contributed $1.5 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $15 million for the remainder of 2019.

Note 7 – Commitments and Contingent Liabilities

Letters of credit – The Company periodically employs letters of credit in the normal course of its business and had outstanding letters of credit of approximately $8.6 million at March 31, 2019, of which $6.9 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

14

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 were $98 million at both March 31, 2019 and December 31, 2018. If the March 31, 2019, net unrecognized tax benefits excluding penalties and interest were recognized, this would favorably impact the Company's tax provision by $34 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.

The Company received income tax assessments of approximately $159.2 million subsequent to March 31, 2019 and the Company intends to respond and vigorously challenge these assessments. The Company anticipates establishing a liability for unrecognized tax benefits of approximately $52.2 million in the quarter ending June 30, 2019 in connection with these assessments.

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.

Note 8 – Share-Based Compensation

On February 26, 2019, the Company granted RSUs to employees for annual incentive awards pursuant to its long-term incentive plan with a grant-date fair value aggregating $25.9 million which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date. The awards vest ratably over three years except to the extent they may vest earlier under the Company's retirement policy.

Liabilities for estimated P-Unit obligations at March 31, 2019, for 2018 grants and prior, included $6.5 million and $2.9 million classified as current and noncurrent, respectively, compared to $9.1 million and $7.0 million, respectively, at December 31, 2018. Current and noncurrent estimated P-Unit liabilities are included in Accrued liabilities, and Other liabilities, respectively, in the Condensed Consolidated Balance Sheets.

At March 31, 2019, estimated unrecognized compensation cost related to nonvested share-based compensation arrangements totaled approximately $48.7 million, which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.1 years.

Note 9 – 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:

15

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

• Level 1 – Quoted prices for identical instruments in active markets;

• Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

• Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example.

The applicable level within the fair value hierarchy is the lowest level of any input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are presented below (in millions):

			Estimated fair value measurements
	Fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2019:
Assets - cash equivalents	$	896.7	$	896.7	$	—	$	—
Other assets (Egyptian Pounds)	1.0		1.0		—		—
Other assets (Angolan Kwanza)	1.9		1.9		—		—
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		—		—

At March 31, 2019, and December 31, 2018, the Company held Egyptian pounds in the amount of $1.0 million and $0.7 million, respectively, which are classified as Other assets on the Condensed Consolidated Balance Sheets. The Company ceased drilling operations in Egypt in 2014, and is working to obtain access to the funds for use outside Egypt to the extent they are not utilized.

Given stricter foreign currency exchange controls in Angola, the Company determined in May 2017 that its previous method of converting Angola Kwanza to USD is likely no longer feasible. As a result, at March 31, 2019 and December 31, 2018, the Company classified its Angolan Kwanza USD equivalent balance of $1.9 million and $1.7 million, respectively, as non-current assets in Other assets on the Condensed Consolidated Balance Sheets. The Company considers the amounts to be recoverable and will continue to evaluate options to convert the Angolan Kwanza to USD.

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

Other Fair Value Measurements

Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. The Company’s publicly traded debt securities had a carrying value of $2.511 billion at March 31, 2019, and an estimated fair value at that date aggregating $2.039 billion, compared to a carrying and fair value of $2.511 billion and $1.881 billion, respectively, at December 31, 2018. 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

16

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

customers. The Company maintains reserves for credit losses when necessary and actual losses have been within management's expectations.

Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the three months endedMarch 31 are set forth below:

Percentage of revenue from major customers:

		Three months ended March 31,
Customer	Segment	2019		2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	11	%
BP Trinidad and Tobago	Jack-ups	12	%	5	%
Saudi Aramco	Jack-ups	—	%	35	%
Anadarko	Deepwater	—	%	24	%
Lundin	Jack-ups	—	%	10	%
(1) Includes revenue related to services provided to ARO (see Note 4).

Percentage of receivables from major customers:

Customer	Segment	March 31, 2019		December 31, 2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	30	%
BP Trinidad and Tobago	Jack-ups	8	%	9	%
Saudi Aramco	Jack-ups	21	%	21	%
Anadarko	Deepwater	—	%	—	%
Lundin	Jack-ups	—	%	—	%
(1) Includes receivables related to services provided to ARO (see Note 4).

Note 10 – Shareholders' Equity

Reclassifications from Accumulated Other Comprehensive Loss – The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income (loss) for the period (in millions):

	Three months ended March 31,
	2019			2018
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Amortization of net loss	$	(2.4	)	$	(8.0	)
Amortization of prior service credit	3.0			4.5
Total before income taxes	0.6			(3.5		)
Income tax (expense) benefit	(0.1		)	0.7
Total reclassifications for the period, net of income taxes	$	0.5		$	(2.8	)

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).

17

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Note 11 – Other Financial Statement Disclosures

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

	March 31, 2019		December 31, 2018
Trade	$	184.3	$	231.7
Income tax	15.8		12.0
Other	7.3		7.5
Total Receivables - trade and other	$	207.4	$	251.2

Accrued Liabilities – The following table sets forth the components of Accrued liabilities (in millions):

	March 31, 2019		December 31, 2018
Pension and other postretirement benefits	$	15.8	$	16.8
Compensation and related employee costs	37.3		45.0
Interest	39.6		34.0
Income taxes	6.2		7.1
Current lease liability	3.5		—
Other	13.3		10.5
Total Accrued liabilities	$	115.7	$	113.4

Long-term Debt – Long-term debt consisted of the following (in millions):

	March 31, 2019		December 31, 2018
7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate)	$	201.3	$	201.2
4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate)	623.5		623.8
4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate)	396.4		396.3
7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate)	497.9		497.8
5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate)	395.4		395.3
5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate)	396.5		396.5
Total carrying value	$	2,511.0	$	2,510.9
Current portion (1)	201.3		201.2
Carrying value, less current portion	$	2,309.7	$	2,309.7
(1) Current portion of long-term debt at March 31, 2019 and December 31, 2018 included the 7.875% Senior Notes due in August 2019.

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

18

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Existing Credit Facility, $60.0 million of the availability matured 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 $250.7 million at March 31, 2019 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.

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 March 31, 2019, no amounts were outstanding and $6.9 million in letters of credit had been issued under the New Credit Facility leaving remaining availability of $948.1 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.

In connection with the closing of the Transaction with Ensco on April 11, 2019, (see Note 1) the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility. 

Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $27.1 million and $17.0 million at March 31, 2019 and 2018, respectively.

On January 5, 2018, the Company purchased two 2013 Le Tourneau Super 116E jack-up rigs, the Bess Brants and Earnest Dees, formerly, P-59 and P-60, respectively, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”). The purchase price was $38.5 million per unit, or an aggregate $77.0 million, of which $7.7 million was paid as a deposit in December 2017. The remaining balance of $69.3 million as well as $1.5 million in transaction costs were paid in January 2018.

Income Taxes– In accordance with US GAAP for interim reporting, the Company has historically estimated its full-year effective tax rate and applied this rate to ordinary income or loss for the reporting period. The Company has determined that since small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate this historical method would not provide reliable results for the three months ended March 31, 2019. Therefore, a discrete year-to-date method of reporting was used for the three months ended March 31, 2019. The Company provides for income taxes based upon the tax laws and rates in effect in the countries in which it conducts operations. The amounts of the provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Overall effective tax rate may, therefore, vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations, levels of income, intercompany gains or losses, and other factors.

The effective tax rate for the three months ended March 31, 2019, was (6.5)% as a result of a tax provision on a pre-tax loss, compared to (5.9)% as a result of a tax provision on a pre-tax loss for the comparable period ended March 31, 2018.

19

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

Note 12 – Segment Information and Disaggregation of Revenue

The Company 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 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.

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, losses on disposals of property and equipment. Segment results are presented below (in millions):

	Three months ended March 31,
	Deepwater			Jack-ups			ARO		Unallocated and other			Reportable segments total			Eliminations and adjustments			Consolidated
2019
Revenue	$	33.6		$	138.0		$	136.0	$	4.9		$	312.5		$	(136.0	)	$	176.5
Operating expenses:
Direct operating costs (excluding items below)	52.1			109.7			85.1		—			246.9			(85.1		)	161.8
Depreciation and amortization	27.0			65.1			13.4		0.6			106.1			(13.4		)	92.7
Selling, general and administrative	—			—			5.2		21.1			26.3			(5.2		)	21.1
Other operating items - expense	—			0.3			0.6		—			0.9			(0.6		)	0.3
Merger and related costs	—			—			—		3.5			3.5			—			3.5
Equity in earnings of unconsolidated subsidiary	—			—			—		—			—			7.1			7.1
Income (loss) from operations	$	(45.5	)	$	(37.1	)	$	31.7	$	(20.3	)	$	(71.2	)	$	(24.6	)	$	(95.8	)
2018
Revenue	$	52.1		$	150.1		$	58.3	$	9.0		$	269.5		$	(58.3	)	$	211.2
Operating expenses:
Direct operating costs (excluding items below)	29.0			128.4			33.4		—			190.8			(33.4		)	157.4
Depreciation and amortization	26.9			70.3			16.6		0.7			114.5			(16.6		)	97.9
Selling, general and administrative	—			—			6.4		25.6			32.0			(6.4		)	25.6
Other operating items - expense	—			1.3			0.1		—			1.4			(0.1		)	1.3
Equity in losses of unconsolidated subsidiary	—			—			—		—			—			(1.3		)	(1.3		)
Income (loss) from operations	$	(3.8	)	$	(49.9	)	$	1.8	$	(17.3	)	$	(69.2	)	$	(3.1	)	$	(72.3	)

20

ROWAN COMPANIES LIMITED AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next.

	Three months ended March 31,
	2019		2018
Deepwater Revenue:
United States	$	24.1	$	52.1
Mexico	9.5		—
Total	$	33.6	$	52.1

	Three months ended March 31,
	2019		2018
Jack-ups Revenue:
Saudi Arabia	$	42.3	$	87.9
Trinidad	33.0		11.6
United Kingdom	18.0		10.4
Norway	17.4		38.8
United States	14.0		1.4
Turkey	13.3		—
Total	$	138.0	$	150.1

	Three months ended March 31,
	2019		2018
Unallocated and Other Revenue:
Saudi Arabia	$	4.9	$	9.0
Total	$	4.9	$	9.0

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.

Note 13 – Subsequent Events

Merger of Rowan Companies plc and Ensco plc

On April 11, 2019, the merger with Ensco was completed pursuant to the Transaction Agreement, as amended. (see Note 1). Additionally, in connection with the closing of the Transaction with Ensco on April 11, 2019, the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility (see Note 1). On June 20, 2019, Rowan plc was registered as a private limited company named Rowan Companies Limited.

Events and transactions subsequent to March 31, 2019 have been evaluated through July 29, 2019, the date the financial statements were available to be issued.

21

EX-99.2

Exhibit 99.2

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

On April 11, 2019, (the "Transaction Date"), we completed our combination with Rowan Companies plc ("Rowan") pursuant to the Transaction Agreement (the "Rowan Transaction"). As a result, Rowan shareholders received 2.750 Ensco Class A ordinary shares for each share of Rowan common stock. Upon closing of the Rowan Transaction, we effected a consolidation (being a reverse stock split under English law) where every four existing Class A ordinary shares, each with nominal value of $0.10, were consolidated into one Class A ordinary share, each with nominal value of $0.40 (the "Reverse Stock Split").All share and per share data included in this report have been retroactively adjusted to reflect the Reverse Stock Split. On the Transaction Date, we changed our name to Ensco Rowan plc and on July 2, 2019 we announced that we will change our name to Valaris plc effective July 31, 2019.

The transaction was accounted for using the acquisition method of accounting with Ensco identified as the acquirer in accordance with U.S. GAAP. Under the acquisition method of accounting, Ensco recorded all assets acquired and liabilities assumed at their respective Transaction-Date fair values.

The following unaudited pro forma condensed combined financial statements and the related notes present the combination of the historical consolidated financial statements of Ensco and Rowan, adjusted to give effect to the Rowan Transaction. See additional information in Note 1 - Basis of Presentation to the unaudited pro forma condensed combined financial statements.

1

ENSCO ROWAN PLC AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF MARCH 31, 2019

(In millions)

	Historical
	Ensco		Rowan		Pro Forma Adjustments				Pro Forma Combined
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	298	$	937	$	—			$	1,235
Short-term investments	245		—		—				245
Accounts receivable, net	314		207		(2		)	(a)	519
Other	355		24		77			(b)	456
Total current assets	1,212		1,168		75				2,455
PROPERTY AND EQUIPMENT, NET	12,509		6,161		(3,172		)	(c)	15,498
LONG-TERM NOTE RECEIVABLES FROM ARO	—		455		—				455
INVESTMENT IN ARO	—		47		91			(d)	138
OTHER ASSETS	142		129		(80		)	(e)	191
	$	13,863	$	7,960	$	(3,086	)		$	18,737
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade	214		97		—				311
Accrued liabilities and other	$	303	$	127	$	47		(f)	$	477
Current portion of long-term debt	—		201		2			(g)	203
Total current liabilities	517		425		49				991
LONG-TERM DEBT	5,019		2,310		(399		)	(g)	6,930
OTHER LIABILITIES	427		318		63			(h)	808
TOTAL EQUITY	7,900		4,907		(2,799		)	(i)	10,008
	$	13,863	$	7,960	$	(3,086	)		$	18,737

The accompanying notes are an integral part to these unaudited pro forma condensed combined financial statements.

2

ENSCO ROWAN PLC AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019

(In millions, except per share amounts)

	Historical
	Ensco			Rowan			Pro Forma Adjustments				Pro Forma Combined
OPERATING REVENUES	$	406		$	177		$	(1	)	(j)	$	582
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	333			162			—				495
Depreciation	125			93			(55		)	(k)	163
General and administrative	29			25			(9		)	(l)	45
	487			280			(64		)		703
EQUITY IN EARNINGS OF UNCONSOLIDATED SUBSIDIARY	—			7			(10		)	(m)	(3		)
OPERATING INCOME (LOSS)	(81		)	(96		)	53				(124		)
OTHER EXPENSE, NET	(75		)	(25		)	(8		)	(n)	(108		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX	(156		)	(121		)	45				(232		)
PROVISION FOR INCOME TAX	32			8			2			(o)	42
INCOME (LOSS) FROM CONTINUING OPERATIONS	$	(188	)	$	(129	)	$	43			$	(274	)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST AND NON-VESTED SHARES	(3		)	—			—				$	(3	)
INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE APPLICABLE COMPANY	$	(191	)	$	(129	)	$	43			$	(277	)
LOSS PER SHARE FROM CONTINUING OPERATIONS
Basic and diluted	$	(1.75	)								$	(1.41	)
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic and diluted	109						88			(p)	197

The accompanying notes are an integral part to these unaudited pro forma condensed combined financial statements.

3

ENSCO ROWAN PLC AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

Note 1 - Basis of Presentation

Upon closing of the Rowan Transaction, we effected a consolidation (being a reverse stock split under English law) where every four existing Class A ordinary shares, each with nominal value of $0.10, were consolidated into one Class A ordinary share, each with nominal value of $0.40 (the "Reverse Stock Split").All share and per share data included in this report have been retroactively adjusted to reflect the Reverse Stock Split. On the Transaction Date, we changed our name to Ensco Rowan plc and on July 2, 2019 we announced that we will change our name to Valaris plc effective July 31, 2019.

The unaudited pro forma condensed combined financial statements were prepared in accordance with Article 11 of SEC Regulation S-X using the acquisition method of accounting in accordance with U.S. GAAP and are based on the historical consolidated financial statements of Ensco and Rowan, after giving effect to the transaction.

The unaudited pro forma condensed combined balance sheet combines the unaudited historical condensed consolidated balance sheets of Ensco and Rowan as of March 31, 2019, giving effect to the Transaction as if it had occurred on March 31, 2019.

The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2019 assumes the transaction took place on January 1, 2018, the beginning of Ensco's most recently completed fiscal year. The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2019 combines the unaudited consolidated statements of operations of Ensco and Rowan for the three months ended March 31, 2019.

The unaudited pro forma condensed combined financial statements are provided for illustrative purposes only and are not intended to represent the consolidated results of operations or financial position of the combined company that would have been recorded had the transaction been completed as of the dates indicated and should not be taken as representative of future results of operations or financial position of the combined company. The unaudited pro forma condensed combined financial statements do not reflect the impacts of any potential operational efficiencies, cost savings or economies of scale that may be achieved with respect to the combined operations of Ensco and Rowan. Additionally, the pro forma statement of operations does not include non-recurring charges or credits and the related tax effects that result directly from the transaction.    

Under the terms of the Transaction Agreement, Rowan stockholders received 2.750 Ensco Class A ordinary shares for each share of Rowan common stock for a total value of $43.67 per share of Rowan common stock based on the closing share price of $15.88 per Ensco Class A ordinary share on April 10, 2019, the last trading day before the Transaction Date. Total consideration delivered in the Rowan Transaction consisted of 88.3 million Ensco shares with an aggregate value of $1.4 billion, inclusive of $2.6 million for the estimated fair value of replacement employee equity awards.

Under U.S. GAAP, merger-related transaction costs (i.e., advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred but are accounted for as expenses in the periods in which the costs are incurred. Ensco's advisory, legal, valuation and other professional fees and expenses were $23 million, of which $14 million was incurred upon closing of the transaction. Costs incurred by Rowan related to the Transaction are $27.2 million, of which $17.0 million was incurred upon closing of the transaction. Following the completion of the transaction, we expect to incur additional charges and expenses relating to restructuring and integrating the operations of Ensco and Rowan.

The unaudited pro forma condensed combined financial statements illustrate the assets and liabilities of Rowan recorded at their preliminary estimated fair values at the closing date. The preliminary fair value estimates are subject to change based on the final valuations. Actual results will differ from this unaudited pro forma condensed combined financial information once we have completed the valuation analysis and computations necessary to finalize the required purchase price allocations. Accordingly, the final purchase price allocations and their effects on financial position and results of operations may differ materially from the preliminary allocations and unaudited pro forma combined amounts included herein. Many of these fair value measurements can be highly subjective, and it is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts.

The unaudited pro forma condensed combined financial statements do not constitute Ensco's statutory accounts required by the Companies Act 2006, which for the year ended December 31, 2018, were prepared in accordance with generally accepted accounting principles in the U.K. and were delivered to the Registrar of Companies in the United Kingdom. The U.K. statutory accounts included an unqualified auditor's report, which did not contain any reference to matters to which the auditors drew attention by way of emphasis without qualifying the report or any statements under Section 498(2) or 498(3) of the Companies Act 2006.

4

The unaudited consolidated statement of operations included within the unaudited pro forma condensed combined financial information included herein do not constitute Rowan’s statutory accounts. Rowan's UK statutory financial statements for 2018 were prepared in accordance with International Financial Reporting Standards as adopted by the European Union and as issued by the IASB and were delivered to the Registrar of Companies in the United Kingdom. The U.K. statutory accounts included an unqualified auditor's report, which did not contain statements under Section 498(2) or (3) of the Companies Act 2006.

The unaudited pro forma condensed combined financial statements should be read in conjunction with the historical consolidated financial statements and accompanying notes contained in the 2018 Annual Reports on Form 10-K of Ensco and Rowan, respectively, and the financial statement as of and for the three-month period ended March 31, 2019 included in the Quarterly Report on Form 10-Q and Exhibit 99.1 of this Current Report on Form 8-K for Ensco and Rowan, respectively.

Note 2 - Accounting Policies

The unaudited pro forma financial information has been compiled in a manner consistent with the accounting policies of Ensco Rowan plc.

Note 3 - Consideration and Allocation

Under the terms of the Transaction Agreement, Rowan stockholders received 2.750 Ensco Class A ordinary shares for each share of Rowan common stock for a total value of $43.67 per share of Rowan common stock based on the closing share price of $15.88 per Ensco Class A ordinary share on April 10, 2019. Total consideration delivered in the Rowan Transaction consisted of 88.3 million Ensco shares and $2.6 million for the fair value of replacement employee equity awards for an aggregate value of $1.4 billion. All share and per share data included in this report have been retroactively adjusted to reflect the reverse stock split discussed in the introductory paragraph.

Under GAAP, when the fair value assigned to net assets exceeds the consideration transferred in a business combination, the difference is reflected as a bargain purchase gain. The following table summarizes the estimated bargain purchase gain calculation as of March 31, 2019 (in millions):

Current assets	$	1,243
Noncurrent assets	3,631
Total assets	4,874
Liabilities	(2,752		)
Net assets	2,122
Less: Consideration transferred	1,403
Estimated gain on bargain purchase	$	719

The estimated fair values assigned to assets acquired net of liabilities assumed exceeded the consideration transferred, resulting in an estimated bargain purchase gain. The estimated bargain purchase gain primarily resulted from the decline in Ensco's share price from $33.92 to $15.88 between the last trading day prior to the announcement of the the Rowan Transaction and the Transaction Date.

5

Note 4 - Pro Forma Adjustments

(a)     Accounts Receivable, net

Reflects the pro forma adjustments to historical amounts to record the estimated fair value of accounts receivable.

(b)     Other current assets

Reflects the pro forma adjustments to record the estimated fair value of other current assets as follows (in millions):

Adjustment to record Rowan materials and supplies at estimated fair value	$	83
Elimination of Rowan historical deferred contract drilling expenses	(6		)
	$	77

The pro forma adjustment to record the estimated fair value of materials and supplies results from a difference in Ensco’s and Rowan’s respective accounting policies. Materials and supplies consists of consumable parts and supplies maintained on drilling rigs and in shore-based warehouse locations for use in operations and is generally comprised of items of low per unit cost and high reorder frequency. The pro forma adjustment to record the estimated fair value of materials and supplies reflects the estimated fair value of materials and supplies maintained on Rowan's drilling rigs and shore-based locations. Ensco recognizes materials and supplies on the balance sheet when purchased and subsequently expenses the items when consumed. Rowan historically recognized expense for materials and supplies as a period cost when received for use and, therefore, Rowan’s historical financial statements do not include a materials and supplies balance.

The pro forma adjustment for the elimination of Rowan's historical deferred contract drilling expenses primarily relates to deferred mobilization costs. Costs incurred for mobilization of equipment and personnel prior to the commencement of drilling services are deferred and subsequently amortized by Rowan over the term of the related drilling contract. These deferred costs have no future economic benefit to EnscoRowan and are eliminated from the pro forma financial statements.

(c)     Property and equipment, net

Reflects the pro forma adjustments to historical amounts to record the estimated fair value of property and equipment. We estimated the fair value of the rigs and equipment primarily by applying an income approach, using projected discounted cash flows, a risk-adjusted discount rate and an estimated effective income tax rate.

(d)     Investment in unconsolidated subsidiary

Reflects the pro forma adjustment to record the estimated fair value of the equity investment in the Saudi Aramco Rowan Offshore Drilling Company ("ARO"), Rowan's 50/50 joint venture with Saudi Aramco. We estimated the fair value of the equity investment in ARO primarily by applying an income approach, using projected discounted cash flows of the underlying assets of ARO, a risk-adjusted discount rate and an estimated effective income tax rate.

(e)     Other assets

Reflects the pro forma adjustments to record the estimated fair value of other assets as follows (in millions):

Deferred tax impacts of certain pro forma adjustments	$	(93	)
Elimination of Rowan historical debt issuance costs	(6		)
Estimated fair value of Rowan contracts with customers	$	16
Other	3
	$	(80	)

The pro forma adjustment for deferred income tax assets represents the estimated deferred income taxes, which reflects the tax effect of the difference between the estimated fair value of Rowan's assets and liabilities recorded under the acquisition method of accounting and the carryover tax basis of those assets and liabilities and certain other adjustments that were a direct result of the business combination.

6

The pro forma adjustment to record the estimated fair value of Rowan's contracts with customers represents the intangible assets recognized for firm customer contracts in place at the pro forma balance sheet date that have favorable contract terms as compared to current market day rates for comparable drilling rigs. The various factors considered in the pro forma adjustment are (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the pro forma balance sheet date. The intangible assets are computed based on the present value of the difference in cash inflows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate. This balance will be amortized to operating revenues on a straight-line basis.

(f)     Accrued liabilities and other

Reflects the pro forma adjustments to record the estimated fair value of current liabilities as follows (in millions):

Rowan transaction costs not reflected in historical financial statements	$	17
Ensco transaction costs not reflected in historical financial statements	14
Change in control provisions on Rowan benefit plans	12
Elimination of Rowan historical deferred revenues	(11		)
Other	15
	$	47

The pro forma adjustment for change-in-control provisions on Rowan benefit plans relates to the additional liability that was incurred for cash payments triggered upon a change in control for benefits payable to executives and other key Rowan employees as a result of pre-existing employee arrangements.

The pro forma adjustment to eliminate Rowan's historical deferred revenues is primarily related to amounts received or receivable for mobilization and the reimbursement for capital upgrades that were previously paid or expected to be paid by a customer as compensation to mobilize a rig to the drilling location or perform requested upgrades or modifications to a rig. Such amounts are deferred and subsequently amortized by Rowan over the term of the related drilling contract. The deferred revenue does not represent future obligations of EnscoRowan and are eliminated from the pro forma financial statements.

(g)     Current portion of long-term debt and Long-Term Debt

Reflects the pro forma adjustment to adjust Rowan's debt to its estimated fair value. The adjustment was based on quoted market prices for Rowan's publicly traded debt as of April 10, 2019.

(h)     Other liabilities

Reflects the pro forma adjustments to record the estimated fair value of other liabilities as follows (in millions):

Adjustments to unrecognized tax benefits	$	52
Deferred tax impacts of certain pro forma adjustments	16
Adjustment to net pension plan liabilities	3
Estimated fair value of Rowan drilling contracts	2
Elimination of Rowan historical deferred revenues	(18		)
Reclassification of employee benefits that become payable on the Transaction Date	(3		)
Other	11
	$	63

The pro forma adjustment to Rowan's unrecognized tax benefits results from the receipt of tax assessments during April and May 2019 related to certain tax positions taken by Rowan in prior years. The assessments received totaled approximately $160 million. The pro forma adjustment reflects the amount of those assessments for which we have preliminarily concluded we will not more-likely-than-not sustain the original filing positions. We are continuing to evaluate the relevant facts and circumstances which may result in revisions to this estimate which may be material.

7

The pro forma adjustment for deferred income tax liabilities represents the estimated deferred income taxes, which reflects the tax effect of the difference between the estimated fair value of Rowan's assets and liabilities recorded under the acquisition method of accounting and the carryover tax basis of those assets and liabilities.

The pro forma adjustment to record the estimated fair value of Rowan's contracts with customers reflects the intangible liabilities recognized for firm customer contracts that have unfavorable contract terms as compared to current market day rates for comparable assets. The various factors considered in the pro forma adjustment are (1) the contracted day rate for each contract, (2) the remaining term of each contract, (3) the rig class and (4) the market conditions for each respective rig class at the pro forma balance sheet date. The intangible liabilities are computed based on the present value of the difference in cash inflows over the remaining contract term as compared to a hypothetical contract with the same remaining term at an estimated current market day rate using a risk-adjusted discount rate and an estimated effective income tax rate. This balance will be amortized to operating revenues over the respective remaining contract terms on a straight-line basis.

The pro forma adjustment to eliminate deferred revenues reflects the noncurrent portion of deferred revenues described in (e) above.

(i)     Total equity

Represents the pro forma adjustments to total equity as follows (in millions):

Elimination of Rowan's historical stockholders' equity	$	(4,907	)
Ensco share consideration recorded as capital in excess of par value	1,368
Estimated bargain purchase gain	719
Ensco shares issued as Transaction consideration, par value	35
Estimated Ensco transaction costs	(14		)
	$	(2,799	)

(j)     Operating revenues

Reflects the pro forma adjustments for the amortization of intangible assets and liabilities associated with the estimated fair value of Rowan's contracts with customers.

(k)     Depreciation

Reflects the pro forma adjustments for depreciation of Rowan's property and equipment. Rowan's property and equipment consists primarily of drilling rigs and related equipment. The pro forma depreciation adjustments relate to the pro forma adjustment to record the estimated fair value of Rowan's drilling rigs and related equipment after conforming depreciable lives and salvage values and computing depreciation using the straight-line method. Ensco estimated remaining useful lives for Rowan's drilling rigs ranging from 10 to 32 years.

(l)     General and Administrative

Reflects the elimination of merger-related costs included in the historical financial statements of Rowan and Ensco.

(m)    Equity in earnings of unconsolidated subsidiary

Reflects the pro forma adjustments to equity in earnings of ARO. The pro forma adjustment reflects the amortization of the estimated fair value basis difference between the equity investment and the carrying values of the underlying net assets of ARO as of the pro forma balance sheet date.

8

(n)    Other expense, net

Reflects the pro forma adjustment to other income (expense), net as follows (in millions):

	Three Months Ended March 31, 2019
Amortization of the fair value adjustments to Rowan's long-term debt	$	(7	)
Elimination of amounts reclassifed to earnings from accumulated other comprehensive income related to Rowan's defined benefit plans	(1		)
	$	(8	)

(o)     Provision for income taxes

Reflects the recognition of the pro forma adjustment to deferred taxes.

(p)     Weighted-average shares outstanding

Reflects the pro forma adjustment for Ensco shares issued to Rowan shareholders.

9

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Ensco Rowan plc
Entity Central Index Key	0000314808
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Entity Emerging Growth Company	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
REVENUE	$ 176.5	$ 211.2
COSTS AND EXPENSES:
Cost, Overhead	161.8	157.4
Depreciation and amortization	92.7	97.9
Selling, general and administrative	21.1	25.6
Loss on disposals of property and equipment	0.3	1.3
Other Cost and Expense, Operating	3.5	0.0
Total costs and expenses	279.4	282.2
Equity in earnings (losses) of unconsolidated subsidiary	7.1	(1.3)
INCOME (LOSS) FROM OPERATIONS	(95.8)	(72.3)
OTHER INCOME (EXPENSE):
Interest expense	(39.3)	(38.5)
Interest income	11.1	6.9
Other - net	2.8	(2.2)
Total other (expense) - net	(25.4)	(33.8)
LOSS BEFORE INCOME TAXES	(121.2)	(106.1)
Provision (benefit) for income taxes	8.0	6.2
NET LOSS	$ (129.2)	$ (112.3)
NET LOSS PER SHARE - BASIC AND DILUTED (in dollars per share)	$ (1.01)	$ (0.89)
Weighted Average Number of Shares Outstanding, Basic and Diluted	127.3	126.5

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
NET LOSS	$ (129.2)	$ (112.3)
OTHER COMPREHENSIVE INCOME (LOSS):
Net reclassification adjustment for amounts recognized in net loss as a component of net periodic benefit cost, net of income tax (benefit) expense of $(0.1) and $0.7 for the three months ended March 31, 2019 and 2018, respectively (see Notes 6 and 10).	(0.5)	2.8
COMPREHENSIVE LOSS	$ (129.7)	$ (109.5)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net reclassification adjustments for amounts recognized in net income as a component of net periodic benefit cost, tax expense	$ 0.0	$ 0.0
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, tax expense	$ (0.1)	$ 0.7

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 936.8	$ 1,026.7
Receivables - trade and other	207.4	251.2
Prepaid expenses and other current assets	24.3	22.4
Total current assets	1,168.5	1,300.3
PROPERTY AND EQUIPMENT:
Drilling equipment	8,560.4	8,510.7
Other property and equipment	142.0	141.7
Property and equipment - gross	8,702.4	8,652.4
Less accumulated depreciation and amortization	2,540.9	2,451.4
Property and equipment - net	6,161.5	6,201.0
Long-term note receivable from unconsolidated subsidiary	454.5	456.0
Investment in unconsolidated subsidiary	47.0	41.2
Other assets	128.6	119.2
TOTAL ASSETS	7,960.1	8,117.7
CURRENT LIABILITIES:
Current portion of long-term debt	201.3	201.2
Accounts payable - trade	96.7	122.3
Deferred revenues	11.3	16.7
Accrued liabilities	115.7	113.4
Total current liabilities	425.0	453.6
Long-term debt	2,309.7	2,309.7
Other liabilities	306.8	307.7
Deferred income taxes - net	12.0	11.7
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY:
Class A Ordinary Shares, $0.125 par value; 128.2 and 128.2 shares issued, respectively; 127.7 and 127.1 shares outstanding, respectively	16.0	16.0
Additional paid-in capital	1,500.4	1,501.5
Retained earnings	3,680.0	3,810.5
Cost of 0.5 and 1.1 treasury shares, respectively	(4.2)	(7.9)
Accumulated other comprehensive loss	(285.6)	(285.1)
Total shareholders' equity	4,906.6	5,035.0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,960.1	$ 8,117.7

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions	Mar. 31, 2019	Dec. 31, 2018
SHAREHOLDERS' EQUITY:
Treasury shares (in shares)	0.5	1.1
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	128.2
Common stock, shares outstanding (in shares)	127.7	127.1

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Class A ordinary shares/ Common stock [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Treasury shares [Member]	Accumulated other comprehensive income (loss) [Member]
Beginning Balance (in shares) at Dec. 31, 2017		126.3
Beginning Balance at Dec. 31, 2017	$ 5,386.1	$ 16.0	$ 1,488.6	$ 4,109.7	$ (9.3)	$ (218.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares issued (acquired) under share-based compensation plans (in shares)		0.6
Net shares issued (acquired) under share-based compensation plans	(3.4)	$ 0.0	(4.8)		1.4
Share-based compensation	4.5		4.5
Retirement benefit adjustments, net of taxes	2.8					2.8
Net loss	(112.3)			(112.3)
Ending Balance (in shares) at Mar. 31, 2018		126.9
Ending Balance at Mar. 31, 2018	5,283.2	$ 16.0	1,488.3	4,048.5	(7.9)	(261.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standard by unconsolidated subsidiary (see Note 4)	5.5			51.1		(45.6)
Beginning Balance (in shares) at Dec. 31, 2018		127.1
Beginning Balance at Dec. 31, 2018	5,035.0	$ 16.0	1,501.5	3,810.5	(7.9)	(285.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares issued (acquired) under share-based compensation plans (in shares)		0.6
Net shares issued (acquired) under share-based compensation plans	(1.5)	$ 0.0	(5.2)		3.7
Share-based compensation	4.1		4.1
Retirement benefit adjustments, net of taxes	(0.5)					(0.5)
Net loss	(129.2)			(129.2)
Ending Balance (in shares) at Mar. 31, 2019		127.7
Ending Balance at Mar. 31, 2019	4,906.6	$ 16.0	$ 1,500.4	3,680.0	$ (4.2)	(285.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standard by unconsolidated subsidiary (see Note 4)	$ (1.3)			$ (1.3)		$ 0.0

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Retirement benefit adjustments, taxes	$ (0.1)	$ 0.7

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (129.2)	$ (112.3)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	92.7	97.9
Equity in (earnings) losses of unconsolidated subsidiary	(7.1)	1.3
Deferred income taxes	2.1	0.1
Pension and other postretirement benefits (income) expense	(1.8)	3.2
Share-based compensation expense	7.8	4.3
Loss on disposals of property and equipment	0.3	1.3
Other	0.6	6.0
Changes in current assets and liabilities:
Receivables - trade and other	47.7	8.8
Prepaid expenses and other current assets	(2.0)	0.2
Accounts payable	(9.0)	0.6
Accrued income taxes	(4.0)	(4.1)
Other current liabilities	3.3	(7.9)
Other postretirement benefit claims paid	(0.2)	(0.5)
Contributions to pension plans	(1.3)	(5.6)
Deferred revenue	(6.8)	3.0
Net changes in other noncurrent assets and liabilities	(11.2)	(7.4)
Net cash used in operating activities	(18.1)	(11.1)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(70.4)	(35.4)
Purchase of rigs	0.0	(70.8)
Repayments of note receivable from unconsolidated subsidiary	1.5	1.3
Proceeds from disposals of property and equipment	0.4	1.3
Net cash used in investing activities	(68.5)	(103.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares repurchased for tax withholdings on vesting of restricted share units	(3.3)	(3.3)
Net cash used in financing activities	(3.3)	(3.3)
DECREASE IN CASH AND CASH EQUIVALENTS	(89.9)	(118.0)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,026.7	1,332.1
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 936.8	$ 1,214.1

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Nature of Operations and Basis of Presentation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies

Rowan Companies Limited (formerly Rowan Companies plc), a private 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 March 31, 2019, the Company operated in three segments: Deepwater, Jack-ups and ARO, the Company's 50/50 joint venture with Saudi Aramco. The Deepwater segment included four ultra-deepwater drillships. The Jack-ups segment was composed of 21 self-elevating jack-up rigs and included the impact of the various arrangements with ARO (see discussion in Note 4). As of March 31, 2019, 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 (leased rigs to ARO) and the Mediterranean Sea. As of March 31, 2019, 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 third quarter of 2019.

The financial statements included in this Quarterly Report are presented in USD and include the accounts of Rowan plc and its direct and indirect subsidiaries. Unless the context otherwise requires, the terms “Rowan,” and “Company” are used to refer to Rowan plc and its consolidated subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

The financial statements included in this Quarterly Report have been prepared in accordance with US GAAP and the applicable rules and regulations of the SEC. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. The financial information included in this report is unaudited, but management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Merger 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 would 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 was to be 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 reserved 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).

On April 11, 2019 (the "Transaction Date"), the merger with Ensco was completed pursuant to the Transaction Agreement, as amended. As a result of the Transaction, Rowan shareholders received 2.750 Ensco Class A Ordinary shares for each Rowan Class A ordinary share, representing a value of $43.67 per Rowan share based on a closing price of $15.88 per Ensco share on April 10, 2019, the last trading day before the Transaction Date. Total consideration delivered in the Rowan Transaction consisted of 88.3 million Ensco shares with an aggregate value of $1.4 billion, inclusive of $2.6 million for the estimated fair value of replacement employee equity awards. On the Transaction Date, Ensco's name was changed to Ensco Rowan plc. Additionally, in connection with the closing of the Transaction with Ensco on April 11, 2019, the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility.

Recently Adopted Accounting Pronouncements

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 took advantage of various practical expedients, provided by the ASC 842, including:

• use of the transition package of practical expedients which, among other things, allowed 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.

Upon adoption of ASU 2016-02 on January 1, 2019 as a lessee, the Company recognized lease liabilities and right-of-use assets of $14.5 million and $13.2 million, respectively. See Note 3 for additional information.

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 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.

New Accounting Pronouncements - to be adopted

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.

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Contract Assets and Contract Liabilities

3 Months Ended

Mar. 31, 2019

Contract with Customer, Asset and Liability [Abstract]

Contract Assets and Contract Liabilities

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 Condensed Consolidated Balance Sheets (in millions):

	Balance Sheet Classification	March 31, 2019		December 31, 2018
Deferred Contract Costs and Demobilization Contract Assets
Current	Prepaid expenses and other current assets	$	8.6	$	8.7
Noncurrent	Other assets	0.3		0.4
		$	8.9	$	9.1
Deferred Revenue - Contract liabilities
Current	Deferred revenue	$	11.3	$	16.7
Noncurrent	Other liabilities	17.7		19.1
		$	29.0	$	35.8

Presented in the table below are the changes in deferred contract costs during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Contract Costs Asset
Beginning balance	$	3.6
Less: amortization	2.7
Ending balance	$	0.9

Presented in the table below are the changes in contract assets during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Contract Assets - Demobilization
Beginning balance	$	5.5
Plus: contractual additions	2.5
Ending balance	$	8.0

The Company expects to recognize $3.4 million of additional demobilization into revenue during the remainder of 2019 which would increase our Contract Assets.

Presented in the table below are the changes in deferred revenue during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Revenue - Deferred mobilization and upgrade/modification revenue
Beginning balance	$	35.8
Plus: contractual additions	2.4
Less: amortization	9.2
Ending balance (1)	$	29.0
(1) Includes $14.3 million of deferred revenue related to capital expenditures for the Bess Brants andEarnest Dees (both leased to ARO) to be received as reimbursement from ARO. A receivable of $14.3 million is included in Receivables - trade and other on the Condensed Consolidated Balance Sheet at March 31, 2019.

Estimated future amortization at March 31, 2019 of the Company's deferred revenue and deferred contract costs to be recognized over the expected recognition period is set forth in the following table (in millions):

	Remaining
	2019		2020		2021		2022		Total
Amortization of deferred revenue	$	9.0	$	9.6	$	8.5	$	1.9	$	29.0
Amortization of deferred contract costs	0.5		0.2		0.2		—		0.9

No impairment losses were recognized on contract assets during the three months ended March 31, 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.

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Leases (Notes)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

Leases

The Company has operating leases for office space, maintenance and warehouse facilities, equipment and employee housing. The Company accounts for the lease component and the non-lease component as a single lease component. The Company's leases have remaining lease terms of less than one year to 10 years, some of which include options to extend. Additionally, the Company subleases certain office space to third parties.

The components of lease expense are as follows (in millions):

	Three months ended March 31, 2019
Long-term operating lease cost	$	1.1
Short-term operating lease cost	0.2
Sublease income	(0.1		)
Total operating lease cost	$	1.2

Supplemental balance sheet information related to the Company's operating leases is as follows (in millions, except lease term and discount rate):

	March 31, 2019
Operating lease right-of-use assets (included in Other assets on the Condensed Consolidated Balance Sheet)	$	12.3
Current lease liability (included in Accrued liabilities on the Condensed Consolidated Balance Sheet)	$	3.5
Long-term lease liability (included in Other liabilities on the Condensed Consolidated Balance Sheet)	10.2
Total operating lease liabilities	$	13.7
Weighted-average remaining lease term (in years)	6.95
Estimated incremental borrowing cost on a secured basis for similar terms as the underlying lease.	8.25		%

For the three months ended March 31, 2019, cash paid for amounts included in the measurement of the Company's operating lease liabilities was $1.1 million.

Maturities of lease liabilities as of March 31, 2019 were as follows (in millions):

Year Ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	3.5
2020	3.3
2021	1.5
2022	1.4
2023	1.4
Thereafter	7.2
Total lease payments	18.3
Less imputed interest	(4.6		)
Total	$	13.7

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Equity Method Investments and Variable Interest Entities

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Equity Method Investments and Variable Interest Entities

On November 21, 2016, Rowan and Saudi Aramco, through their subsidiaries, entered into a Shareholders’ Agreement to create a 50/50 joint venture, known as ARO. ARO commenced operations on October 17, 2017, and owns, managed and operates offshore drilling units in Saudi Arabia. The Company accounts for its interest in ARO using the equity method of accounting and only recognizes its portion of equity earnings in the Company's condensed consolidated financial statements. ARO is a variable interest entity; however, the Company is not the primary beneficiary and therefore does not consolidate ARO. The Company's judgment regarding the level of influence over ARO included considering key factors such as: each company's ownership interest, representation on the board of managers of ARO, ability to direct activities that most significantly impact ARO's economic performance, as well as the ability to influence policy-making decisions.

Summarized financial information

Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions):

	Three months ended March 31, 2019			Three months ended March 31, 2018
REVENUE	$	136.0		$	58.3
Direct operating costs (excluding items below)	85.1			33.4
Depreciation and amortization	13.4			16.6
Selling, general and administrative	5.2			6.4
Loss on disposals of property and equipment	0.6			0.1
INCOME FROM OPERATIONS	31.7			1.8
Interest expense, net	(9.7		)	(5.6		)
Provision (benefit) for income taxes	7.7			(1.2		)
NET INCOME (LOSS)	$	14.3		$	(2.6	)
Rowan's equity in earnings (losses) from ARO	$	7.1		$	(1.3	)

	March 31, 2019		December 31, 2018
Current assets	$	367.8	$	348.9
Non-current assets	925.8		727.0
Total assets	$	1,293.6	$	1,075.9
Current liabilities	$	183.0	$	112.2
Non-current liabilities	1,053.4		949.1
Total liabilities	$	1,236.4	$	1,061.3

Related party transactions

The Company's investment in ARO was decreased by $1.3 million as of January 1, 2019 to reflect its share of the impact ARO's adoption of ASC 842 had on their retained earnings.

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. Interest is being recognized as a part of Interest income in the Company's Condensed Consolidated Statements of Operations and totaled approximately $5.7 million and $2.8 million for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, the Company had an interest receivable from ARO of $5.7 million which is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet.

In conjunction with the establishment of ARO, the Company entered into a series of agreements with ARO including: a Transition Services Agreement, Secondment Agreement and Lease Agreements. There is also an agreement between the Company and ARO, pursuant to which ARO agreed to reimburse the Company for certain capital expenditures related to four rigs leased to ARO. At March 31, 2019, $14.3 million for the Bess Brants and Earnest Dees capital expenditures reimbursementis included in Receivables - trade and other on the Condensed Consolidated Balance Sheet. During the three months ended March 31, 2019, the Company received $14.3 million in capital expenditures reimbursement from ARO for the EXLI and EXL IV. 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):

	Three months ended March 31, 2019		Three months ended March 31, 2018
Secondment and other Revenue - Jack-ups	$	20.9	$	14.3
Lease and Related Revenue - Jack-ups	21.4		—
Transition Services Revenue - Unallocated	4.9		9.0
Total Revenue received from ARO	$	47.2	$	23.3
Proceeds from equipment sales to ARO (a)	$	0.3	$	1.2
(a) For the the three months ended March 31. 2019, no gain or loss was recognized.For the three months ended March 31, 2018, a $0.6 million loss was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statement of Operations.

Total accounts receivable from ARO totaled approximately $50.8 million and $68.8 million as of March 31, 2019 and December 31, 2018, respectively, and are included in Receivables - trade and other on the Condensed Consolidated Balance Sheets.

The Company also entered into a Rig Management Agreement pursuant to which ARO provided certain rig management services for Rowan's rigs while they are 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 in 2019. The Company recognized $10.6 million for the three months ended March 31, 2018, in Direct operating cost in the Condensed Consolidated Statements of Operations related to these rig management services. Additionally, ARO may sell equipment or supplies to Rowan or purchase such for Rowan, in which case ARO is provided reimbursement. Such transactions were minimal for the three months ended March 31, 2019 and 2018.

Accounts payable to ARO totaled approximately $3.0 million and $6.1 million as of March 31, 2019 and December 31, 2018, respectively.

The following summarizes the total assets and liabilities as reflected in the Company's Condensed Consolidated Balance Sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any receivable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO.

	March 31, 2019		December 31, 2018
Total assets	$	558.0	$	566.0
Total liabilities	3.0		6.1
Maximum exposure to loss	$	555.0	$	559.9

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Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the additional weighted effect of dilutive securities outstanding during the period, which includes 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.

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):

	Three months ended March 31,
	2019	2018
Share options and appreciation rights	1.4	1.5
P-Units, RSAs and RSUs	5.6	4.6
Total potentially dilutive shares	7.0	6.1

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Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

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

The components of net periodic pension cost were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	0.5		$	2.7
Interest cost (2)	7.3			6.3
Expected return on plan assets (2)	(9.1		)	(9.4		)
Amortization of net loss (2)	2.3			7.8
Amortization of prior service credit (2)	—			(1.2		)
Net periodic pension cost	$	1.0		$	6.2
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

The components of net periodic cost of other postretirement benefits were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	—		$	—
Interest cost (2)	0.1			0.1
Amortization of net loss (2)	0.1			0.2
Amortization of prior service credit (2)	(3.0		)	(3.3		)
Total other postretirement benefit cost	$	(2.8	)	$	(3.0	)
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

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).

During the three months ended March 31, 2019, the Company contributed $1.5 million to its pension and other postretirement benefit plans and expects to make additional contributions to such plans totaling approximately $15 million for the remainder of 2019.

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Letters of credit – The Company periodically employs letters of credit in the normal course of its business and had outstanding letters of credit of approximately $8.6 million at March 31, 2019, of which $6.9 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 were $98 million at both March 31, 2019 and December 31, 2018. If the March 31, 2019, net unrecognized tax benefits excluding penalties and interest were recognized, this would favorably impact the Company's tax provision by $34 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.

The Company received income tax assessments of approximately $159.2 million subsequent to March 31, 2019 and the Company intends to respond and vigorously challenge these assessments. The Company anticipates establishing a liability for unrecognized tax benefits of approximately $52.2 million in the quarter ending June 30, 2019 in connection with these assessments.

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.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2019

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

Share-Based Compensation

Share-Based Compensation

On February 26, 2019, the Company granted RSUs to employees for annual incentive awards pursuant to its long-term incentive plan with a grant-date fair value aggregating $25.9 million which will be recognized as compensation expense over a weighted-average period of 2.7 years from the grant date. The awards vest ratably over three years except to the extent they may vest earlier under the Company's retirement policy.

Liabilities for estimated P-Unit obligations at March 31, 2019, for 2018 grants and prior, included $6.5 million and $2.9 million classified as current and noncurrent, respectively, compared to $9.1 million and $7.0 million, respectively, at December 31, 2018. Current and noncurrent estimated P-Unit liabilities are included in Accrued liabilities, and Other liabilities, respectively, in the Condensed Consolidated Balance Sheets.

At March 31, 2019, estimated unrecognized compensation cost related to nonvested share-based compensation arrangements totaled approximately $48.7 million, which is expected to be recognized as compensation expense over a remaining weighted-average period of 2.1 years.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by US GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are:

• Level 1 – Quoted prices for identical instruments in active markets;

• Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

• Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example.

The applicable level within the fair value hierarchy is the lowest level of any input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are presented below (in millions):

			Estimated fair value measurements
	Fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2019:
Assets - cash equivalents	$	896.7	$	896.7	$	—	$	—
Other assets (Egyptian Pounds)	1.0		1.0		—		—
Other assets (Angolan Kwanza)	1.9		1.9		—		—
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		—		—

At March 31, 2019, and December 31, 2018, the Company held Egyptian pounds in the amount of $1.0 million and $0.7 million, respectively, which are classified as Other assets on the Condensed Consolidated Balance Sheets. The Company ceased drilling operations in Egypt in 2014, and is working to obtain access to the funds for use outside Egypt to the extent they are not utilized.

Given stricter foreign currency exchange controls in Angola, the Company determined in May 2017 that its previous method of converting Angola Kwanza to USD is likely no longer feasible. As a result, at March 31, 2019 and December 31, 2018, the Company classified its Angolan Kwanza USD equivalent balance of $1.9 million and $1.7 million, respectively, as non-current assets in Other assets on the Condensed Consolidated Balance Sheets. The Company considers the amounts to be recoverable and will continue to evaluate options to convert the Angolan Kwanza to USD.

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

Other Fair Value Measurements

Financial instruments not required to be measured at fair value consist of the Company’s publicly traded debt securities. The Company’s publicly traded debt securities had a carrying value of $2.511 billion at March 31, 2019, and an estimated fair value at that date aggregating $2.039 billion, compared to a carrying and fair value of $2.511 billion and $1.881 billion, respectively, at December 31, 2018. Fair values of the Company's publicly traded debt securities were provided by a broker who makes a market in such securities and were measured using a market-approach valuation technique, which is a Level 2 fair value measurement.

Concentrations of Credit Risk

The Company invests its excess cash primarily in time deposits and high-quality money market accounts at several large commercial banks with strong credit ratings, and therefore believes that its risk of loss is minimal.

The Company’s customers largely consist of major international oil companies, national oil companies and large investment-grade exploration and production companies. The Company routinely evaluates and monitors the credit quality of potential and current customers. The Company maintains reserves for credit losses when necessary and actual losses have been within management's expectations.

Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the three months endedMarch 31 are set forth below:

Percentage of revenue from major customers:

		Three months ended March 31,
Customer	Segment	2019		2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	11	%
BP Trinidad and Tobago	Jack-ups	12	%	5	%
Saudi Aramco	Jack-ups	—	%	35	%
Anadarko	Deepwater	—	%	24	%
Lundin	Jack-ups	—	%	10	%
(1) Includes revenue related to services provided to ARO (see Note 4).

Percentage of receivables from major customers:

Customer	Segment	March 31, 2019		December 31, 2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	30	%
BP Trinidad and Tobago	Jack-ups	8	%	9	%
Saudi Aramco	Jack-ups	21	%	21	%
Anadarko	Deepwater	—	%	—	%
Lundin	Jack-ups	—	%	—	%
(1) Includes receivables related to services provided to ARO (see Note 4).

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Shareholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Reclassifications from Accumulated Other Comprehensive Loss – The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income (loss) for the period (in millions):

	Three months ended March 31,
	2019			2018
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Amortization of net loss	$	(2.4	)	$	(8.0	)
Amortization of prior service credit	3.0			4.5
Total before income taxes	0.6			(3.5		)
Income tax (expense) benefit	(0.1		)	0.7
Total reclassifications for the period, net of income taxes	$	0.5		$	(2.8	)

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).

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Other Financial Statement Disclosures

3 Months Ended

Mar. 31, 2019

Other Financial Statement Disclosures [Abstract]

Other Financial Statement Disclosures

Other Financial Statement Disclosures

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

	March 31, 2019		December 31, 2018
Trade	$	184.3	$	231.7
Income tax	15.8		12.0
Other	7.3		7.5
Total Receivables - trade and other	$	207.4	$	251.2

Accrued Liabilities – The following table sets forth the components of Accrued liabilities (in millions):

	March 31, 2019		December 31, 2018
Pension and other postretirement benefits	$	15.8	$	16.8
Compensation and related employee costs	37.3		45.0
Interest	39.6		34.0
Income taxes	6.2		7.1
Current lease liability	3.5		—
Other	13.3		10.5
Total Accrued liabilities	$	115.7	$	113.4

Long-term Debt – Long-term debt consisted of the following (in millions):

	March 31, 2019		December 31, 2018
7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate)	$	201.3	$	201.2
4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate)	623.5		623.8
4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate)	396.4		396.3
7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate)	497.9		497.8
5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate)	395.4		395.3
5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate)	396.5		396.5
Total carrying value	$	2,511.0	$	2,510.9
Current portion (1)	201.3		201.2
Carrying value, less current portion	$	2,309.7	$	2,309.7
(1) Current portion of long-term debt at March 31, 2019 and December 31, 2018 included the 7.875% Senior Notes due in August 2019.

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 matured 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 $250.7 million at March 31, 2019 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.

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 March 31, 2019, no amounts were outstanding and $6.9 million in letters of credit had been issued under the New Credit Facility leaving remaining availability of $948.1 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.

In connection with the closing of the Transaction with Ensco on April 11, 2019, (see Note 1) the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility. 

Supplemental Cash Flow Information – Accrued capital expenditures, which are excluded from capital expenditures in the Condensed Consolidated Statements of Cash Flows until settlement, totaled $27.1 million and $17.0 million at March 31, 2019 and 2018, respectively.

On January 5, 2018, the Company purchased two 2013 Le Tourneau Super 116E jack-up rigs, the Bess Brants and Earnest Dees, formerly, P-59 and P-60, respectively, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”). The purchase price was $38.5 million per unit, or an aggregate $77.0 million, of which $7.7 million was paid as a deposit in December 2017. The remaining balance of $69.3 million as well as $1.5 million in transaction costs were paid in January 2018.

Income Taxes– In accordance with US GAAP for interim reporting, the Company has historically estimated its full-year effective tax rate and applied this rate to ordinary income or loss for the reporting period. The Company has determined that since small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate this historical method would not provide reliable results for the three months ended March 31, 2019. Therefore, a discrete year-to-date method of reporting was used for the three months ended March 31, 2019. The Company provides for income taxes based upon the tax laws and rates in effect in the countries in which it conducts operations. The amounts of the provisions are impacted by such laws and rates and the availability of deductions, credits and other benefits in each of the various jurisdictions. Overall effective tax rate may, therefore, vary considerably from quarter to quarter and from year to year based on the actual or projected location of operations, levels of income, intercompany gains or losses, and other factors.

The effective tax rate for the three months ended March 31, 2019, was (6.5)% as a result of a tax provision on a pre-tax loss, compared to (5.9)% as a result of a tax provision on a pre-tax loss for the comparable period ended March 31, 2018.

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.

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Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

Segment Information and Disaggregation of Revenue

The Company 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 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.

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, losses on disposals of property and equipment. Segment results are presented below (in millions):

	Three months ended March 31,
	Deepwater			Jack-ups			ARO		Unallocated and other			Reportable segments total			Eliminations and adjustments			Consolidated
2019
Revenue	$	33.6		$	138.0		$	136.0	$	4.9		$	312.5		$	(136.0	)	$	176.5
Operating expenses:
Direct operating costs (excluding items below)	52.1			109.7			85.1		—			246.9			(85.1		)	161.8
Depreciation and amortization	27.0			65.1			13.4		0.6			106.1			(13.4		)	92.7
Selling, general and administrative	—			—			5.2		21.1			26.3			(5.2		)	21.1
Other operating items - expense	—			0.3			0.6		—			0.9			(0.6		)	0.3
Merger and related costs	—			—			—		3.5			3.5			—			3.5
Equity in earnings of unconsolidated subsidiary	—			—			—		—			—			7.1			7.1
Income (loss) from operations	$	(45.5	)	$	(37.1	)	$	31.7	$	(20.3	)	$	(71.2	)	$	(24.6	)	$	(95.8	)
2018
Revenue	$	52.1		$	150.1		$	58.3	$	9.0		$	269.5		$	(58.3	)	$	211.2
Operating expenses:
Direct operating costs (excluding items below)	29.0			128.4			33.4		—			190.8			(33.4		)	157.4
Depreciation and amortization	26.9			70.3			16.6		0.7			114.5			(16.6		)	97.9
Selling, general and administrative	—			—			6.4		25.6			32.0			(6.4		)	25.6
Other operating items - expense	—			1.3			0.1		—			1.4			(0.1		)	1.3
Equity in losses of unconsolidated subsidiary	—			—			—		—			—			(1.3		)	(1.3		)
Income (loss) from operations	$	(3.8	)	$	(49.9	)	$	1.8	$	(17.3	)	$	(69.2	)	$	(3.1	)	$	(72.3	)

The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next.

	Three months ended March 31,
	2019		2018
Deepwater Revenue:
United States	$	24.1	$	52.1
Mexico	9.5		—
Total	$	33.6	$	52.1

	Three months ended March 31,
	2019		2018
Jack-ups Revenue:
Saudi Arabia	$	42.3	$	87.9
Trinidad	33.0		11.6
United Kingdom	18.0		10.4
Norway	17.4		38.8
United States	14.0		1.4
Turkey	13.3		—
Total	$	138.0	$	150.1

	Three months ended March 31,
	2019		2018
Unallocated and Other Revenue:
Saudi Arabia	$	4.9	$	9.0
Total	$	4.9	$	9.0

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.

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Subsequent Event (Notes)

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

Merger of Rowan Companies plc and Ensco plc

On April 11, 2019, the merger with Ensco was completed pursuant to the Transaction Agreement, as amended. (see Note 1). Additionally, in connection with the closing of the Transaction with Ensco on April 11, 2019, the Company terminated the Existing Credit Agreement and the New Credit Agreement as well as all outstanding commitments under the Existing Credit Facility and New Credit Facility (see Note 1). On June 20, 2019, Rowan plc was registered as a private limited company named Rowan Companies Limited.

Events and transactions subsequent to March 31, 2019 have been evaluated through July 29, 2019, the date the financial statements were available to be issued.

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Nature of Operations and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The financial statements included in this Quarterly Report have been prepared in accordance with US GAAP and the applicable rules and regulations of the SEC. Certain information and notes have been condensed or omitted as permitted by those rules and regulations. The financial information included in this report is unaudited, but management believes the accompanying financial statements contain all adjustments, which are of a normal recurring nature unless otherwise noted, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

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 took advantage of various practical expedients, provided by the ASC 842, including:

• use of the transition package of practical expedients which, among other things, allowed 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.

Upon adoption of ASU 2016-02 on January 1, 2019 as a lessee, the Company recognized lease liabilities and right-of-use assets of $14.5 million and $13.2 million, respectively. See Note 3 for additional information.

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 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.

New Accounting Pronouncements - to be adopted

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.

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Contract Assets and Contract Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Contract with Customer, Asset and Liability [Abstract]

Schedule of Contract Assets and Contract Liabilities

Presented in the table below are the changes in contract assets during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Contract Assets - Demobilization
Beginning balance	$	5.5
Plus: contractual additions	2.5
Ending balance	$	8.0

Presented in the table below are the changes in deferred contract costs during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Contract Costs Asset
Beginning balance	$	3.6
Less: amortization	2.7
Ending balance	$	0.9

The following table sets forth deferred contract costs, demobilization contract assets and deferred revenue on the Condensed Consolidated Balance Sheets (in millions):

	Balance Sheet Classification	March 31, 2019		December 31, 2018
Deferred Contract Costs and Demobilization Contract Assets
Current	Prepaid expenses and other current assets	$	8.6	$	8.7
Noncurrent	Other assets	0.3		0.4
		$	8.9	$	9.1
Deferred Revenue - Contract liabilities
Current	Deferred revenue	$	11.3	$	16.7
Noncurrent	Other liabilities	17.7		19.1
		$	29.0	$	35.8

Presented in the table below are the changes in deferred revenue during the three months ended March 31, 2019 (in millions):

	March 31, 2019
Deferred Revenue - Deferred mobilization and upgrade/modification revenue
Beginning balance	$	35.8
Plus: contractual additions	2.4
Less: amortization	9.2
Ending balance (1)	$	29.0
(1) Includes $14.3 million of deferred revenue related to capital expenditures for the Bess Brants andEarnest Dees (both leased to ARO) to be received as reimbursement from ARO. A receivable of $14.3 million is included in Receivables - trade and other on the Condensed Consolidated Balance Sheet at March 31, 2019.

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

Estimated future amortization at March 31, 2019 of the Company's deferred revenue and deferred contract costs to be recognized over the expected recognition period is set forth in the following table (in millions):

	Remaining
	2019		2020		2021		2022		Total
Amortization of deferred revenue	$	9.0	$	9.6	$	8.5	$	1.9	$	29.0
Amortization of deferred contract costs	0.5		0.2		0.2		—		0.9

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease expense are as follows (in millions):

	Three months ended March 31, 2019
Long-term operating lease cost	$	1.1
Short-term operating lease cost	0.2
Sublease income	(0.1		)
Total operating lease cost	$	1.2

Assets and Liabilities, Lessee [Table Text Block]

Supplemental balance sheet information related to the Company's operating leases is as follows (in millions, except lease term and discount rate):

	March 31, 2019
Operating lease right-of-use assets (included in Other assets on the Condensed Consolidated Balance Sheet)	$	12.3
Current lease liability (included in Accrued liabilities on the Condensed Consolidated Balance Sheet)	$	3.5
Long-term lease liability (included in Other liabilities on the Condensed Consolidated Balance Sheet)	10.2
Total operating lease liabilities	$	13.7
Weighted-average remaining lease term (in years)	6.95
Estimated incremental borrowing cost on a secured basis for similar terms as the underlying lease.	8.25		%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of lease liabilities as of March 31, 2019 were as follows (in millions):

Year Ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	3.5
2020	3.3
2021	1.5
2022	1.4
2023	1.4
Thereafter	7.2
Total lease payments	18.3
Less imputed interest	(4.6		)
Total	$	13.7

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Equity Method Investments and Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Related Party Transactions [Table Text Block]

Revenue and other amounts recognized by Rowan related to these agreements and transactions is as follows (in millions):

	Three months ended March 31, 2019		Three months ended March 31, 2018
Secondment and other Revenue - Jack-ups	$	20.9	$	14.3
Lease and Related Revenue - Jack-ups	21.4		—
Transition Services Revenue - Unallocated	4.9		9.0
Total Revenue received from ARO	$	47.2	$	23.3
Proceeds from equipment sales to ARO (a)	$	0.3	$	1.2
(a) For the the three months ended March 31. 2019, no gain or loss was recognized.For the three months ended March 31, 2018, a $0.6 million loss was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statement of Operations.

Equity Method Investments [Table Text Block]

The following summarizes the total assets and liabilities as reflected in the Company's Condensed Consolidated Balance Sheets as well as the Company's maximum exposure to loss related to ARO (in millions). Generally, the Company's maximum exposure to loss is limited to its 1) equity investment in the joint venture, 2) outstanding note receivable and 3) any receivable to the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO.

	March 31, 2019		December 31, 2018
Total assets	$	558.0	$	566.0
Total liabilities	3.0		6.1
Maximum exposure to loss	$	555.0	$	559.9

Summarized financial information for ARO, as derived from ARO's financial statements, is as follows (in millions):

	Three months ended March 31, 2019			Three months ended March 31, 2018
REVENUE	$	136.0		$	58.3
Direct operating costs (excluding items below)	85.1			33.4
Depreciation and amortization	13.4			16.6
Selling, general and administrative	5.2			6.4
Loss on disposals of property and equipment	0.6			0.1
INCOME FROM OPERATIONS	31.7			1.8
Interest expense, net	(9.7		)	(5.6		)
Provision (benefit) for income taxes	7.7			(1.2		)
NET INCOME (LOSS)	$	14.3		$	(2.6	)
Rowan's equity in earnings (losses) from ARO	$	7.1		$	(1.3	)

	March 31, 2019		December 31, 2018
Current assets	$	367.8	$	348.9
Non-current assets	925.8		727.0
Total assets	$	1,293.6	$	1,075.9
Current liabilities	$	183.0	$	112.2
Non-current liabilities	1,053.4		949.1
Total liabilities	$	1,236.4	$	1,061.3

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Antidilutive Securities Excluded From Earnings per Share

Anti-dilutive shares, which could potentially dilute earnings per share in the future, are set forth below (in millions):

	Three months ended March 31,
	2019	2018
Share options and appreciation rights	1.4	1.5
P-Units, RSAs and RSUs	5.6	4.6
Total potentially dilutive shares	7.0	6.1

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Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Summary of Net Periodic Pension and Other Postemployment Benefit Costs

The components of net periodic pension cost were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	0.5		$	2.7
Interest cost (2)	7.3			6.3
Expected return on plan assets (2)	(9.1		)	(9.4		)
Amortization of net loss (2)	2.3			7.8
Amortization of prior service credit (2)	—			(1.2		)
Net periodic pension cost	$	1.0		$	6.2
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

The components of net periodic cost of other postretirement benefits were as follows (in millions):

	Three months ended March 31,
	2019			2018
Service cost (1)	$	—		$	—
Interest cost (2)	0.1			0.1
Amortization of net loss (2)	0.1			0.2
Amortization of prior service credit (2)	(3.0		)	(3.3		)
Total other postretirement benefit cost	$	(2.8	)	$	(3.0	)
(1) Included in Direct operating costs and Selling, general and administrative on the Condensed Consolidated Statements of Operations
(2) Included in Other - net on the Condensed Consolidated Statements of Operations

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block]

Assets measured at fair value on a recurring basis are presented below (in millions):

			Estimated fair value measurements
	Fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
March 31, 2019:
Assets - cash equivalents	$	896.7	$	896.7	$	—	$	—
Other assets (Egyptian Pounds)	1.0		1.0		—		—
Other assets (Angolan Kwanza)	1.9		1.9		—		—
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		—		—

Fair Value, Concentration of Risk [Table Text Block]

Revenue and receivables from transactions with external customers that amount to 10% or more of revenue during the three months endedMarch 31 are set forth below:

Percentage of revenue from major customers:

		Three months ended March 31,
Customer	Segment	2019		2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	11	%
BP Trinidad and Tobago	Jack-ups	12	%	5	%
Saudi Aramco	Jack-ups	—	%	35	%
Anadarko	Deepwater	—	%	24	%
Lundin	Jack-ups	—	%	10	%
(1) Includes revenue related to services provided to ARO (see Note 4).

Percentage of receivables from major customers:

Customer	Segment	March 31, 2019		December 31, 2018
ARO Drilling (1)	Jack-ups and Unallocated and other	27	%	30	%
BP Trinidad and Tobago	Jack-ups	8	%	9	%
Saudi Aramco	Jack-ups	21	%	21	%
Anadarko	Deepwater	—	%	—	%
Lundin	Jack-ups	—	%	—	%
(1) Includes receivables related to services provided to ARO (see Note 4).

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss

The following table sets forth the significant amounts reclassified out of each component of accumulated other comprehensive loss and their effect on net income (loss) for the period (in millions):

	Three months ended March 31,
	2019			2018
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Amortization of net loss	$	(2.4	)	$	(8.0	)
Amortization of prior service credit	3.0			4.5
Total before income taxes	0.6			(3.5		)
Income tax (expense) benefit	(0.1		)	0.7
Total reclassifications for the period, net of income taxes	$	0.5		$	(2.8	)

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Other Financial Statement Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

Other Financial Statement Disclosures [Abstract]

Components of Receivables - Trade and Other

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

	March 31, 2019		December 31, 2018
Trade	$	184.3	$	231.7
Income tax	15.8		12.0
Other	7.3		7.5
Total Receivables - trade and other	$	207.4	$	251.2

Schedule of Accrued Liabilities

The following table sets forth the components of Accrued liabilities (in millions):

	March 31, 2019		December 31, 2018
Pension and other postretirement benefits	$	15.8	$	16.8
Compensation and related employee costs	37.3		45.0
Interest	39.6		34.0
Income taxes	6.2		7.1
Current lease liability	3.5		—
Other	13.3		10.5
Total Accrued liabilities	$	115.7	$	113.4

Schedule of Long-term Debt

Long-term debt consisted of the following (in millions):

	March 31, 2019		December 31, 2018
7.875% Senior Notes, due August 2019 ($201.4 million principal amount; 8.0% effective rate)	$	201.3	$	201.2
4.875% Senior Notes, due June 2022 ($620.8 million principal amount; 4.7% effective rate)	623.5		623.8
4.75% Senior Notes, due January 2024 ($398.1 million principal amount; 4.8% effective rate)	396.4		396.3
7.375% Senior Notes, due June 2025 ($500 million principal amount; 7.4% effective rate)	497.9		497.8
5.4% Senior Notes, due December 2042 ($400 million principal amount; 5.4% effective rate)	395.4		395.3
5.85% Senior Notes, due January 2044 ($400 million principal amount; 5.9% effective rate)	396.5		396.5
Total carrying value	$	2,511.0	$	2,510.9
Current portion (1)	201.3		201.2
Carrying value, less current portion	$	2,309.7	$	2,309.7
(1) Current portion of long-term debt at March 31, 2019 and December 31, 2018 included the 7.875% Senior Notes due in August 2019.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Information

Segment results are presented below (in millions):

	Three months ended March 31,
	Deepwater			Jack-ups			ARO		Unallocated and other			Reportable segments total			Eliminations and adjustments			Consolidated
2019
Revenue	$	33.6		$	138.0		$	136.0	$	4.9		$	312.5		$	(136.0	)	$	176.5
Operating expenses:
Direct operating costs (excluding items below)	52.1			109.7			85.1		—			246.9			(85.1		)	161.8
Depreciation and amortization	27.0			65.1			13.4		0.6			106.1			(13.4		)	92.7
Selling, general and administrative	—			—			5.2		21.1			26.3			(5.2		)	21.1
Other operating items - expense	—			0.3			0.6		—			0.9			(0.6		)	0.3
Merger and related costs	—			—			—		3.5			3.5			—			3.5
Equity in earnings of unconsolidated subsidiary	—			—			—		—			—			7.1			7.1
Income (loss) from operations	$	(45.5	)	$	(37.1	)	$	31.7	$	(20.3	)	$	(71.2	)	$	(24.6	)	$	(95.8	)
2018
Revenue	$	52.1		$	150.1		$	58.3	$	9.0		$	269.5		$	(58.3	)	$	211.2
Operating expenses:
Direct operating costs (excluding items below)	29.0			128.4			33.4		—			190.8			(33.4		)	157.4
Depreciation and amortization	26.9			70.3			16.6		0.7			114.5			(16.6		)	97.9
Selling, general and administrative	—			—			6.4		25.6			32.0			(6.4		)	25.6
Other operating items - expense	—			1.3			0.1		—			1.4			(0.1		)	1.3
Equity in losses of unconsolidated subsidiary	—			—			—		—			—			(1.3		)	(1.3		)
Income (loss) from operations	$	(3.8	)	$	(49.9	)	$	1.8	$	(17.3	)	$	(69.2	)	$	(3.1	)	$	(72.3	)

Revenue from External Customers by Products and Services [Table Text Block]

The classifications of revenue among geographic areas in the tables which follow (in millions) were determined based on segment and physical location of assets. Because the Company evaluates performance primarily based on income from operations and the Company’s offshore drilling rigs are mobile, classifications by area are dependent on the rigs’ location at the time revenue is earned and may vary from one period to the next.

	Three months ended March 31,
	2019		2018
Deepwater Revenue:
United States	$	24.1	$	52.1
Mexico	9.5		—
Total	$	33.6	$	52.1

	Three months ended March 31,
	2019		2018
Jack-ups Revenue:
Saudi Arabia	$	42.3	$	87.9
Trinidad	33.0		11.6
United Kingdom	18.0		10.4
Norway	17.4		38.8
United States	14.0		1.4
Turkey	13.3		—
Total	$	138.0	$	150.1

	Three months ended March 31,
	2019		2018
Unallocated and Other Revenue:
Saudi Arabia	$	4.9	$	9.0
Total	$	4.9	$	9.0

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Nature of Operations and Basis of Presentation (Details) $ / shares in Units, shares in Millions		3 Months Ended
	Apr. 11, 2019 USD ($) $ / shares shares	Mar. 31, 2019 USD ($) drilling_unit segment	Apr. 10, 2019 USD ($) $ / shares	Jan. 28, 2019 $ / shares	Jan. 01, 2019 USD ($)
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Operating Lease, Liability		$ 13,700,000			$ 14,500,000
Number of Operating Segments | segment		3
Number of ultra-deepwater drillships | drilling_unit		4
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit		21
Operating Lease, Right-of-Use Asset		$ 12,300,000			$ 13,200,000
Number of jackups leased by ARO		9
Contracts between ARO and Saudi Aramco		2
Saudi Arabia Joint Venture [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Number of fleet of self-elevating mobile offshore jack-up drilling units | drilling_unit		7
Period Of Joint Venture Funding Of Drilling Rigs		10 years
Saudi Arabia Joint Venture [Member] | Saudi Aramco [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Equity Method Investment, Ownership Percentage		50.00%
Parent Company [Member] | Saudi Arabia Joint Venture [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Equity Method Investment, Ownership Percentage		50.00%
Ensco [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares				$ 0.10
Subsequent Event [Member] | Ensco [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Shares Received by Rowan Shareholders for Rowan Ensco merge | $ / shares	$ 2.750
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	88.3
Subsequent Event [Member] | Rowan [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Business Combination, Consideration Transferred	$ 1,400,000,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned			$ 43.67
Share Price | $ / shares			$ 15.88
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	$ 2,600,000
Maximum [Member] | Saudi Arabia Joint Venture [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Number Of Drilling Rigs To Be Purchased By Joint Venture | drilling_unit		20

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Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
REVENUE	$ 176.5	$ 211.2
Deferred Costs [Abstract]
Contract assets				$ 8.9	$ 9.1
Contract Liabilities [Abstract]
Contract liabilities, current				11.3	16.7
Contract liabilities	35.8		$ 29.0	29.0	35.8
Movement in Deferred costs [Rollforward]
Beginning balance	3.6		0.9
Less: amortization	2.7
Ending balance	0.9
Demobilization Revenue [Roll Forward]
Beginning balance	5.5		8.0
Plus: contractual additions	2.5
Ending balance	8.0
Movement in Deferred Revenue [Roll Forward]
Beginning balance	35.8		29.0
Plus: contractual additions	2.4
Less: amortization	9.2
Ending balance (1)	29.0
Capex [Member]
Movement in Deferred Revenue [Roll Forward]
Plus: contractual additions	14.3
Deferred Revenue [Member]
Contract Liabilities [Abstract]
Contract liabilities, current				11.3	16.7
Prepaid Expenses and Other Current Assets [Member]
Deferred Costs [Abstract]
Contract assets, current				8.6	8.7
Other Noncurrent Liabilities [Member]
Contract Liabilities [Abstract]
Contract liabilities, noncurrent				17.7	19.1
Other Assets [Member]
Deferred Costs [Abstract]
Contract assets, non-current				$ 0.3	$ 0.4
Accounts Receivable [Member]
Movement in Deferred Revenue [Roll Forward]
Plus: contractual additions	$ 14.3
Scenario, Forecast [Member] | Demobilization [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
REVENUE			$ 3.4

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Contract Assets and Contract Liabilities Revenue From Contract with Customer (Details) $ in Millions	Mar. 31, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	9 months
Revenue, Remaining Performance Obligation, Amount	$ 9.0
Capitalized Contract Cost, Net, Current	$ 0.5
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	$ 1.9
Capitalized Contract Cost, Net, Noncurrent	0.0
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	29.0
Capitalized Contract Cost, Net	$ 0.9

XML

Leases (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Operating Lease, Payments	$ 1.1
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Remaining Lease Terms	10 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Remaining Lease Terms	1 year

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Leases Components of Lease Expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating Lease, Cost	$ 1.1
Short-term Lease, Cost	0.2
Sublease Income	(0.1)
Lease, Cost	$ 1.2

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Leases Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Operating Lease, Right-of-Use Asset	$ 12.3	$ 13.2
Operating Lease, Liability, Current	3.5		$ 0.0
Operating Lease, Liability, Noncurrent	10.2
Operating Lease, Liability	$ 13.7	$ 14.5
Operating Lease, Weighted Average Remaining Lease Term	6 years 11 months 12 days
Operating Lease, Weighted Average Discount Rate, Percent	8.25%

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Leases Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	$ 3.5
Lessee, Operating Lease, Liability, Payments, Due Year Two	3.3
Lessee, Operating Lease, Liability, Payments, Due Year Three	1.5
Lessee, Operating Lease, Liability, Payments, Due Year Four	1.4
Lessee, Operating Lease, Liability, Payments, Due Year Five	1.4
Lessee, Operating Lease, Liability, Payments, Due after Year Five	7.2
Lessee, Operating Lease, Liability, Payments, Due	18.3
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(4.6)
Operating Lease, Liability	$ 13.7	$ 14.5

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Equity Method Investments and Variable Interest Entities (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 01, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Oct. 17, 2017
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Equity Method Investment, Summarized Financial Information, Revenue		$ 136.0	$ 58.3
Equity Method Investment, Summarized Financial Information, Cost of Sales		85.1	33.4
Equity Method Investment, Summarized Financial Information, Depreciation and Amortization		13.4	16.6
Equity Method Investment, Summarized Financial Information, Selling, general and administrative expense		5.2	6.4
Equity Method Investment, Summarized Financial Information, Gain (Loss) on disposal of property, plant and equipment		0.6	0.1
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations		31.7	1.8
Equity Method Investment, Summarized Financial Information, Interest Expense		(9.7)	(5.6)
Equity Method Investment, Summarized Financial Information, Income Tax Expense (benefit)		7.7	(1.2)
Equity Method Investment, Summarized Financial Information, Net Income (Loss)		14.3	(2.6)
Income (Loss) from Equity Method Investments		7.1	(1.3)
Equity Method Investment, Summarized Financial Information [Abstract]
Equity Method Investment, Summarized Financial Information, Current Assets		367.8		$ 348.9
Equity Method Investment, Summarized Financial Information, Noncurrent Assets		925.8		727.0
Equity Method Investment, Summarized Financial Information, Assets		1,293.6		1,075.9
Equity Method Investment, Summarized Financial Information, Current Liabilities		183.0		112.2
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities		1,053.4		949.1
Equity Method Investment, Summarized Financial Information, Liabilities		1,236.4		1,061.3
Long-term note receivable from unconsolidated subsidiary		454.5		456.0
Interest income		11.1	6.9
Revenue from Related Parties		47.2	23.3
Proceeds from disposals of property and equipment		0.4	1.3
Gain (Loss) on Disposition of Property Plant Equipment		$ 0.3	1.3
Saudi Arabia Joint Venture [Member] | Parent Company [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage		50.00%
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Income (Loss) from Equity Method Investments		$ 7.1
Equity Method Investment, Summarized Financial Information [Abstract]
Interest income			(1.3)
Accounts Payable, Related Parties		3.0		6.1
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets		558.0		566.0
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities		3.0		6.1
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount		555.0		559.9
Accounts Receivable [Member] | Saudi Arabia Joint Venture [Member] | Parent Company [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Accounts Receivable, Related Parties		50.8		$ 68.8
Prepaid Expenses and Other Current Assets [Member] | Saudi Arabia Joint Venture [Member] | Parent Company [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Due from Joint Ventures, Current		5.7
Rig Management Services [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Costs and Expenses, Related Party		0.0	10.6
Secondment Revenue [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Revenue from Related Parties		20.9	14.3
Lease Revenue [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Revenue from Related Parties		21.4	0.0
Transition Services Revenue [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Revenue from Related Parties		4.9	9.0
ARO Drilling [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Proceeds from disposals of property and equipment		0.3	1.2
Gain (Loss) on Disposition of Property Plant Equipment		$ 0.0	0.6
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage		50.00%
London Interbank Offered Rate (LIBOR) [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Loans Receivable, Basis Spread on Variable Rate					2.00%
Interest Income [Member] | Saudi Arabia Joint Venture [Member] | Parent Company [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Interest income	$ 1.3	$ 5.7	2.8
Operating Segments [Member]
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Income (Loss) from Equity Method Investments		0.0	0.0
Operating Segments [Member] | ARO Segment [Member]
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Income (Loss) from Equity Method Investments		0.0	$ 0.0
Bess Brants and Ernest Dees [Member] | Accounts Receivable [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Accounts Receivable, Related Parties		14.3
EXL I and EXL IV [Member] | Accounts Receivable [Member]
Equity Method Investment, Summarized Financial Information [Abstract]
Accounts Receivable, Related Parties		$ 14.3

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Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares (in shares)	7.0	6.1
Share Options and Appreciation Rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares (in shares)	1.4	1.5
Novested Restricted Shares and Restricted Share Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares (in shares)	5.6	4.6

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Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plan, Plan Amendment [Abstract]
Contribution to pension and other postemployment benefit plans	$ 1.5
Future contributions to pension and other postemployment benefit plans	15.0
Defined Benefit Pension [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Total net pension cost and other postretirement benefit cost	1.0	$ 6.2
Other Postretirement Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Total net pension cost and other postretirement benefit cost	(2.8)	(3.0)
Direct Operating Costs and Selling General and Administrative | Defined Benefit Pension [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost (1)	0.5	2.7
Direct Operating Costs and Selling General and Administrative | Other Postretirement Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost (1)	0.0	0.0
Other, Net | Defined Benefit Pension [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Interest cost (2)	7.3	6.3
Expected return on plan assets (2)	(9.1)	(9.4)
Amortization of net loss (2)	2.3	7.8
Amortization of prior service credit (2)	0.0	(1.2)
Other, Net | Other Postretirement Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Interest cost (2)	0.1	0.1
Amortization of net loss (2)	0.1	0.2
Amortization of prior service credit (2)	$ (3.0)	$ (3.3)

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Commitments and Contingent Liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) drilling_unit	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Long-term Purchase Commitment [Line Items]
Letters of credit issued	$ 8.6
IRS proposed unfavorable tax adjustments	85.0
Gross unrecognized tax benefits	98.0		$ 98.0
Tax impact of net unrecognized tax benefits, if reversed	$ 34.0
Saudi Arabia Joint Venture [Member]
Long-term Purchase Commitment [Line Items]
Period Of Joint Venture Funding Of Drilling Rigs	10 years
Saudi Arabia Joint Venture [Member] | Maximum [Member]
Long-term Purchase Commitment [Line Items]
Number Of Drilling Rigs To Be Purchased By Joint Venture | drilling_unit	20
Contingent Funding Obligation To Equity Method Investment	$ 1,250.0
Number Of Drilling Rigs To Be Purchased By Each Partner in a 12 month period | drilling_unit	3
New Revolving Credit Facility [Member]
Long-term Purchase Commitment [Line Items]
Letters of credit issued	$ 6.9
Subsequent Event [Member]
Long-term Purchase Commitment [Line Items]
Gross unrecognized tax benefits		$ 52.0
Increase in Unrecognized Tax Benefits is Reasonably Possible		$ 159.0

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Share-Based Compensation (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 26, 2019	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average period for remaining recognition of compensation expense		2 years 1 month 6 days
Unrecognized compensation cost related to nonvested share-based compensation arrangements		$ 48.7
February 27, 2018 Grant [Member] | Restricted Share Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based awards, grant-date fair value	$ 25.9
Weighted-average period for remaining recognition of compensation expense	2 years 8 months 12 days
Awards vesting period	3 years
Other Current Liabilities [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated liabilities for share-based compensation awards classified as short-term		6.5	$ 9.1
Other Noncurrent Liabilities [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated liabilities for share-based compensation awards classified as long-term		$ 2.9	$ 7.0

XML

Fair Value Measurements - Narrative (Details) - Recurring Basis [Member] - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term Debt, Fair Value	$ 2,039.0	$ 1,881.0
Other Assets [Member] | Egypt, Pounds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets	1.0	0.7
Other Noncurrent Assets [Member] | Angola, Kwanza
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Assets	$ 1.9	$ 1.7

XML

Fair Value Measurements - Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	$ 896.7	$ 990.5
Egypt, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.0	0.7
Angola, Kwanza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.9	1.7
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	896.7	990.5
Fair Value, Inputs, Level 1 [Member] | Egypt, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.0
Fair Value, Inputs, Level 1 [Member] | Angola, Kwanza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	1.9	1.7
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	0.0	0.0
Fair Value, Inputs, Level 2 [Member] | Egypt, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0	0.0
Fair Value, Inputs, Level 2 [Member] | Angola, Kwanza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0	0.0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets - cash equivalents	0.0	0.0
Fair Value, Inputs, Level 3 [Member] | Egypt, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0	0.0
Fair Value, Inputs, Level 3 [Member] | Angola, Kwanza
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets	0.0	0.0
Other Assets [Member] | Egypt, Pounds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets	$ 1.0	$ 0.7

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Fair Value Measurements - Other Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Long-term Debt	$ 2,511.0	$ 2,510.9

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Fair Value Measurements - Concentration of Credit Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Deepwater Segment [Member] | Anadarko [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%		0.00%
Deepwater Segment [Member] | Anadarko [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	24.00%
Deepwater Segment [Member] | BP Trinidad and Tobago [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	5.00%
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	27.00%		30.00%
Jack-ups and Unallocated and Other [Member] | ARO Drilling [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	27.00%	11.00%
Jack-ups [Member] | Saudi Aramco [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	21.00%		21.00%
Jack-ups [Member] | Saudi Aramco [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	35.00%
Jack-ups [Member] | Lundin [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%		0.00%
Jack-ups [Member] | Lundin [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	10.00%
Jack-ups [Member] | BP Trinidad and Tobago [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	8.00%		9.00%

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Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortization of Net Loss [Member]
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Total before income taxes	$ (2.4)	$ (8.0)
Amortization of Prior Service Credit [Member]
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Total before income taxes	3.0	4.5
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Amounts recognized as a component of net periodic pension and other postretirement benefit cost:
Total before income taxes	0.6	(3.5)
Income tax (expense) benefit	(0.1)	0.7
Total reclassifications for the period, net of income taxes	$ 0.5	$ (2.8)

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Other Financial Statement Disclosures - Components of Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Other Financial Statement Disclosures [Abstract]
Trade	$ 184.3	$ 231.7
Income tax	15.8	12.0
Other	7.3	7.5
Total receivables - trade and other	$ 207.4	$ 251.2

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Other Financial Statement Disclosures - Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Other Financial Statement Disclosures [Abstract]
Pension and other postretirement benefits	$ 15.8	$ 16.8
Compensation and related employee costs	37.3	45.0
Interest	39.6	34.0
Income taxes	6.2	7.1
Operating Lease, Liability, Current	3.5	0.0
Other	13.3	10.5
Total accrued liabilities	$ 115.7	$ 113.4

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Other Financial Statement Disclosures - Long Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt	$ 2,511.0	$ 2,510.9
Current portion of long-term debt	201.3	201.2
Long-term Debt, Excluding Current Maturities	2,309.7	2,309.7
Subject Notes [Member] | 7.875% Senior Notes, due August 2019 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 201.3	$ 201.2
Stated rate	7.875%	7.875%
Principal amount	$ 201.4	$ 201.4
Effective rate	8.00%	8.00%
Subject Notes [Member] | 4.875% Senior Notes, due June 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 623.5	$ 623.8
Stated rate	4.875%	4.875%
Principal amount	$ 620.8	$ 620.8
Effective rate	4.70%	4.70%
Subject Notes [Member] | 4.75% Senior Notes, due January 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 396.4	$ 396.3
Stated rate	4.75%	4.75%
Principal amount	$ 398.1	$ 398.1
Effective rate	4.80%	4.80%
Subject Notes [Member] | 7.375% Senior Note Payable Due June 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 497.9	$ 497.8
Stated rate	7.375%	7.375%
Principal amount	$ 500.0	$ 500.0
Effective rate	7.40%	7.40%
Subject Notes [Member] | 5.4% Senior Notes due, December 2042 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 395.4	$ 395.3
Stated rate	5.40%	5.40%
Principal amount	$ 400.0	$ 400.0
Effective rate	5.40%	5.40%
Subject Notes [Member] | 5.85% Senior Notes, due January 2044 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 396.5	$ 396.5
Stated rate	5.85%	5.85%
Principal amount	$ 400.0	$ 400.0
Effective rate	5.90%	5.90%

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Other Financial Statement Disclosures - Long Term Debt, Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt	$ 2,511.0	$ 2,510.9
Current portion of long-term debt	201.3	201.2
Long-term Debt, Excluding Current Maturities	2,309.7	2,309.7
Letters of credit issued	8.6
Subject Notes [Member] | 5.85% Senior Notes, due January 2044 [Member]
Debt Instrument [Line Items]
Long-term Debt	396.5	396.5
Principal amount	400.0	400.0
Subject Notes [Member] | 7.875% Senior Notes, due August 2019 [Member]
Debt Instrument [Line Items]
Long-term Debt	201.3	201.2
Principal amount	201.4	201.4
Subject Notes [Member] | 4.875% Senior Notes, due June 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt	623.5	623.8
Principal amount	620.8	620.8
Subject Notes [Member] | 4.75% Senior Notes, due January 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	396.4	396.3
Principal amount	398.1	398.1
Subject Notes [Member] | 7.375% Senior Note Payable Due June 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt	497.9	497.8
Principal amount	$ 500.0	$ 500.0
Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms	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
Line of Credit Facility, Letter of Credit Borrowing Capacity	$ 0.0
Availability under Revolving Credit Facility	310.7
Remaining availability under credit facility	250.7
Amounts outstanding under credit facility	$ 0.0
New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms	The New Credit Agreement contains certain financial covenants applicable to the Company and its subsidiaries, 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 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 a subsidiary of the Company, in each case, that directly own 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 the Company and its subsidiaries who are borrowers and 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").
Line of Credit Facility, Letter of Credit Borrowing Capacity	$ 50.0
Availability under Revolving Credit Facility	955.0
Remaining availability under credit facility	948.1
Amounts outstanding under credit facility	0.0
Line of Credit Facility, Swingline Borrowing Capacity	129.0
Line of Credit Facility, Restriction	200.0
Letters of credit issued	6.9
Matures on January 23 2019 | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Availability under Revolving Credit Facility	60.0
Matures on January 23, 2020 | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Availability under Revolving Credit Facility	150.7
Matures on January 23 2021 | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Availability under Revolving Credit Facility	$ 100.0
Minimum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.125%
Minimum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.375%
Maximum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.35%
Maximum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.70%
Line of Credit Facility, Additional Borrowing Capacity	$ 250.0
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.125%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.75%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.25%
Base Rate [Member] | Minimum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.125%
Base Rate [Member] | Minimum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Base Rate [Member] | Maximum [Member] | Existing Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Base Rate [Member] | Maximum [Member] | New Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%

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Other Financial Statement Disclosures - Narrative (Details) $ in Millions		3 Months Ended
	Jan. 05, 2018 USD ($) drilling_unit	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Supplemental Cash Flow Information [Line Items]
Number of Rigs Purchased at Auction | drilling_unit	2
Supplemental Cash Flow Information
Accrued capital expenditures		$ 27.1	$ 17.0
Income Taxes
Effective tax rate		(6.50%)	(5.90%)
Provision (benefit) for income taxes		$ 8.0	$ 6.2
P-59 [Member]
Supplemental Cash Flow Information [Line Items]
Purchase Price of Rigs Won at Auction	38.5
P-60 [Member]
Supplemental Cash Flow Information [Line Items]
Purchase Price of Rigs Won at Auction	38.5
P-59 and P60 Rigs [Member]
Supplemental Cash Flow Information [Line Items]
Purchase Price of Rigs Won at Auction	77.0
Security Deposit				$ 7.7
Purchase Price of Rigs Won at Auction less Deposit	69.3
Transaction Costs	$ 1.5

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Segment Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) segment	Mar. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	3
Revenue from Contract with Customer, Excluding Assessed Tax	$ 176.5	$ 211.2
Cost, Overhead	161.8	157.4
Operating expenses:
Depreciation and amortization	92.7	97.9
Selling, general and administrative	21.1	25.6
Other operating items	0.3	1.3
Business Combination, Integration Related Costs	3.5
Equity in earnings (losses) of unconsolidated subsidiary	7.1	(1.3)
INCOME (LOSS) FROM OPERATIONS	(95.8)	(72.3)
Deepwater Segment [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	33.6	52.1
Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	138.0	150.1
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	312.5	269.5
Cost, Overhead	246.9	190.8
Operating expenses:
Depreciation and amortization	106.1	114.5
Selling, general and administrative	26.3	32.0
Other operating items	0.9	1.4
Business Combination, Integration Related Costs	3.5
Equity in earnings (losses) of unconsolidated subsidiary	0.0	0.0
INCOME (LOSS) FROM OPERATIONS	(71.2)	(69.2)
Operating Segments [Member] | Deepwater Segment [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	33.6	52.1
Cost, Overhead	52.1	29.0
Operating expenses:
Depreciation and amortization	27.0	26.9
Selling, general and administrative	0.0	0.0
Other operating items	0.0	0.0
Business Combination, Integration Related Costs	0.0
Equity in earnings (losses) of unconsolidated subsidiary	0.0	0.0
INCOME (LOSS) FROM OPERATIONS	(45.5)	(3.8)
Operating Segments [Member] | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	138.0	150.1
Cost, Overhead	109.7	128.4
Operating expenses:
Depreciation and amortization	65.1	70.3
Selling, general and administrative	0.0	0.0
Other operating items	0.3	1.3
Business Combination, Integration Related Costs	0.0
Equity in earnings (losses) of unconsolidated subsidiary	0.0	0.0
INCOME (LOSS) FROM OPERATIONS	(37.1)	(49.9)
Operating Segments [Member] | ARO Segment [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	136.0	58.3
Cost, Overhead	85.1	33.4
Operating expenses:
Depreciation and amortization	13.4	16.6
Selling, general and administrative	5.2	6.4
Other operating items	0.6	0.1
Business Combination, Integration Related Costs	0.0
Equity in earnings (losses) of unconsolidated subsidiary	0.0	0.0
INCOME (LOSS) FROM OPERATIONS	31.7	1.8
Unallocated and other
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	4.9	9.0
Cost, Overhead	0.0	0.0
Operating expenses:
Depreciation and amortization	0.6	0.7
Selling, general and administrative	21.1	25.6
Other operating items	0.0	0.0
Business Combination, Integration Related Costs	3.5
Equity in earnings (losses) of unconsolidated subsidiary	0.0	0.0
INCOME (LOSS) FROM OPERATIONS	(20.3)	(17.3)
Eliminations and adjustments
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	(136.0)	(58.3)
Cost, Overhead	(85.1)	(33.4)
Operating expenses:
Depreciation and amortization	(13.4)	(16.6)
Selling, general and administrative	(5.2)	(6.4)
Other operating items	(0.6)	(0.1)
Business Combination, Integration Related Costs	0.0
Equity in earnings (losses) of unconsolidated subsidiary	7.1	(1.3)
INCOME (LOSS) FROM OPERATIONS	(24.6)	(3.1)
Parent Company [Member] | Saudi Arabia Joint Venture [Member]
Operating expenses:
Equity in earnings (losses) of unconsolidated subsidiary	$ 7.1
Equity Method Investment, Ownership Percentage	50.00%
Saudi Arabia | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 42.3	87.9
Saudi Arabia | Unallocated and other
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	4.9	9.0
Norway | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	17.4	38.8
Trinidad | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	33.0	11.6
United Kingdom | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	18.0	10.4
United States | Deepwater Segment [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	24.1	52.1
United States | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	14.0	1.4
MEXICO | Deepwater Segment [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	9.5	0.0
TURKEY | Jack-ups [Member]
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 13.3	$ 0.0
Saudi Aramco [Member] | Saudi Arabia Joint Venture [Member]
Operating expenses:
Equity Method Investment, Ownership Percentage	50.00%