RDC - Rowan Company's Hidden Non-Operating Income Is Today's Filing Season Find
For March 1, our forensic accounting needle in a haystack comes from a drilling company with hidden non-operating income.
Analyst Peter Apockotos found an unusual item in Rowan Company's (RDC) 2018 10-K.
On page 31, RDC discloses that it received a $28 million (3% of revenue) early termination fee from Anadarko Petroleum (APC). RDC received this fee after APC terminated a drilling contract in the second quarter of 2018 that had been scheduled to run for two more months.
This non-recurring income couldn't save RDC from a $347 million GAAP