Equity Method Investments and Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

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



	Three months ended September 30, 2018		Nine months ended September 30, 2018
Secondment Revenue - Jack-ups	$	14.4	$	36.2
Lease Revenue - Jack-ups	8.0		9.1
Transition Services Revenue - Unallocated	9.0		26.9
Sales of supplies - Jack-ups	2.0		3.9
Total Revenue received from ARO	$	33.4	$	76.1

Proceeds from equipment sales to ARO ^(a)	$	5.9	$	7.6

^(a)A gain of $0.9 million and $0.7 million for the three and nine months ended September 30, 2018, respectively, was recognized in Loss on disposals of property and equipment on the Condensed Consolidated Statements of Operations. $6.8 million is included in Receivables - trade and other as of September 30, 2018 for the $7.6 million purchase price proceeds.

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 amounts receivable by the Company for services it provides to the joint venture, reduced by payables for services which the Company owes to ARO.



	September 30, 2018		December 31, 2017
Total assets	$	370.3	$	319.5
Total liabilities	11.3		10.8
Maximum exposure to loss	$	359.0	$	308.7

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



	Three months ended September 30, 2018			Nine months ended September 30, 2018
Revenue	$	89.2		$	218.3
Direct operating costs (excluding items below)	51.2			120.5
Depreciation and amortization	17.0			50.4
Selling, general and administrative	6.8			20.0
Gain on disposals of property and equipment	(1.0		)	—
Income from operations	15.2			27.4
Interest expense	(5.7		)	(16.9		)
Provision for income taxes	3.2			3.6
Net income	$	6.3		$	6.9

Rowan's equity in earnings from ARO	$	3.1		$	3.4



	September 30, 2018		December 31, 2017
Current assets	$	205.8	$	108.6
Non-current assets	468.8		459.7
Total assets	$	674.6	$	568.3

Current liabilities	$	107.4	$	29.2
Non-current liabilities	566.3		545.1
Total liabilities	$	673.7	$	574.3