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USD ($) / shares
USD ($)
$c00031http://www.sec.gov/CIK0000085408duration2010-01-01T00:00:002010-12-31T00:00:00u002Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0u000Standardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2true0rdc_NotesToFinancialStatementsAbstractrdcfalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE 3 - ACQUISITION OF SKEIE DRILLING & PRODUCTION ASA</font></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div></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">On July 1, 2010, the Company entered into a Share Purchase Agreement (the "Purchase Agreement") with certain shareholders of Skeie Drilling & Production ASA ("SKDP") and obtained irrevocable commitments from two other shareholders of SKDP (collectively, the "Sellers") for the purchase of their shares, which constituted 48.8% of the outstanding ordinary shares of SKDP.  Under the terms of the Purchase Agreement and irrevocable commitments, the Company agreed to issue 0.00574167 shares of Rowan common stock for each ordinary share of SKDP owned by the Sellers.  In July 2010, the Company purchased an additional 1.5% of SKDP shares for cash in the open market.</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">SKDP, which was subsequently renamed Rowan Drilling Norway AS, was a Norwegian entity that owned and managed the construction of three high-spec jack-up rigs, designated <font style="DISPLAY: inline; FONT-STYLE: italic">"N-Class,"</font> being designed and built by Keppel FELS Ltd. in Singapore.  The first two rigs, the <font style="DISPLAY: inline; FONT-STYLE: italic">Rowan Viking </font>and <font style="DISPLAY: inline; FONT-STYLE: italic">Rowan Stavanger,</font> were delivered in October 2010 and January 2011, respectively, and the third rig, which is to be named the<font style="DISPLAY: inline; FONT-STYLE: italic"> Rowan Norway, </font>is expected to be delivered in June 2011.  The Company's remaining obligations under the construction contracts are included in a table of projected cost amounts in Note 7.</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">In August 2010, the Company issued common stock to certain shareholders of SKDP in private placements in exchange for their SKDP shares and, on August 24, 2010, commenced a tender offer for all remaining ordinary shares of SKDP on the same terms (the "Exchange Offer").  Through the transactions contemplated by the Purchase Agreement, the private placements and the Exchange Offer, the Company acquired approximately 96% of the outstanding SKDP shares. On September 30, 2010, the Company acquired the remaining SKDP shares in cash through a compulsory acquisition pursuant to the Norwegian Public Companies Act.  The SKDP shares have since been delisted from the Norwegian OTC System.  The</font></div><br /><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">total consideration paid for all of the SKDP shares was approximately $13 million in cash and 11,724,818 shares of Rowan common stock.</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 accounted for the acquisition of SKDP as an asset acquisition and allocated the total purchase price to individual assets acquired and liabilities assumed based on relative fair values as of September 10, 2010, (the "Acquisition Date") with no recognition of goodwill.  The net cash effect of the acquisition was a net cash inflow of $201.3 million, including $219.0 million of restricted cash, which the Company used later in 2010 to make the final shipyard payment on the <font style="DISPLAY: inline; FONT-STYLE: italic">Rowan Viking.</font>  Total cost of the acquisition was $402.9 million consisting of (i) $12.9 million for the purchase of SKDP stock, (ii) $39.1 million for open market purchases of SKDP debt, (iii) $13.0 million for legal fees and other transaction costs, and (iv) 11,724,818 shares of Rowan common stock valued at $337.9 million.  Net assets acquired consisted of $40.4 million of unrestricted cash, $219.0 million of cash that was restricted under the terms of SKDP's loan agreement, construction in progress and other assets valued at $683.4 million, and related debt of $539.9 million.</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 Acquisition Date was the date upon which the Company's cumulative ownership interest in SKDP exceeded 50%.  Fair values of debt were estimated based on quoted market prices on the Acquisition Date.  Shares of Rowan common stock issued were valued based on quoted market prices of Rowan stock on the actual dates of exchange.  The results of operations of SKDP have been included in the consolidated financial statements of the Company from the Acquisition Date and were not material.</font></div>NOTE 3 - ACQUISITION OF SKEIE DRILLING & PRODUCTION ASAOn July 1, 2010, the Company entered into a Share Purchase Agreement (the "Purchase Agreement") withfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F
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