2.2.0.7 false Subsequent Events 006110 - Disclosure - Subsequent Events true false false false 1 USD false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Notes to Financial Statements [Abstract] 0 rdc_NotesToFinancialStatementsAbstract rdc false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Note 11 - Subsequent Events 1 us-gaap_ScheduleOfSubsequentEventsTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On July 1, 2010, the Company entered into a Share Purchase Agreement (the "Purchase Agreement") with certain shareholders of Skeie Drilling & Production ASA ("Skeie") and obtained irrevocable commitments from two other shareholders of Skeie (collectively, the "Sellers") for the purchase of their shares constituting 48.8% of the outstanding ordinary shares of Skeie.  Rowan had previously acquired approximately 1.5% of Skeie's outstanding ordinary shares in open market purchases for cash.  As of July 19, 2010, the Company's obligation to purchase the Sellers' shares and to tender for the remaining outstanding shares of Skeie became unconditional.</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the terms of the Purchase Agreement and irrevocable commitments, the Company will issue 0.00574167 shares of the Company's common stock for each of the 1,037,006,792 ordinary shares of Skeie collectively owned by the Sellers, resulting in the issuance of 5,954,151 shares of the Company's common stock.  Rowan intends to commence a tender offer in August for the remaining 49.7% of outstanding shares of Skeie on the same terms, which would result in the issuance of approximately 6.1 million additional Rowan shares.</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Skeie is a Norwegian entity that owns and manages the construction of three high-spec jack-up rigs, designated <font style="DISPLAY: inline; FONT-STYLE: italic">"N-Class,"</font> designed and being built by Keppel FELS Ltd. in Singapore.  The rigs are scheduled for delivery in September 2010, December 2010 and June 2011.  Skeie has earned no revenues since its inception in 2006 and has not entered into any drilling contracts for the operation of its three rigs under construction.</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As of June 30, 2010, Skeie had approximately $269 million in cash and restricted cash and $530 million of first and second lien debt outstanding, secured by the rigs.  The Company expects the three rigs will require an additional $434 million for completion, net of cash and restricted cash acquired, plus approximately $22 million of capitalized interest.  The Company currently anticipates funding the incremental amount from existing cash and operating cash flows.  Assuming a Rowan stock price of $25.00 per share and the Company obtains 100% of the Skeie shares, the total cost to the Company would be approximately $1.3 billion, including estimated transaction costs.  The actual consideration will depend upon the market prices of Rowan's common stock at the time of issuance and the number of Skeie shares acquired.</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Company intends to account for the transaction as an asset acquisition and allocate the total purchase price  to individual assets acquired and liabilities assumed based on relative fair values with no recognition of goodwill.</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There were no other events or transactions that occurred subsequent to June 30, 2010, requiring recognition or disclosure in the financial statements.</font></div> On July 1, 2010, the Company entered into a Share Purchase Agreement (the "Purchase Agreement") with certain shareholders of Skeie Drilling & Production false false false us-types:textBlockItemType textblock Describes disclosed significant events or transactions that occurred after the balance sheet date, but before the issuance of the financial statements. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, losses resulting from fire or flood, losses on receivables, significant realized and unrealized gains and losses that result from changes in quoted market prices of securities, declines in market prices of inventory, changes in authorized or issued debt (SEC), significant foreign exchange rate changes, substantial loans to insiders or affiliates, significant long-term investments, and substantial dividends not in the ordinary course of business. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 11 false 1 2 false UnKnown UnKnown UnKnown false true