Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 15, 2013 | Mar. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HELMERICH & PAYNE INC | ' | ' |
Entity Central Index Key | '0000046765 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $6,260,548,651 |
Entity Common Stock, Shares Outstanding | ' | 107,142,985 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Operating revenues | ' | ' | ' |
Drilling - U.S. Land | $2,785,449 | $2,678,475 | $2,100,508 |
Drilling - Offshore | 221,863 | 189,086 | 201,417 |
Drilling - International Land | 366,841 | 270,027 | 226,849 |
Other | 13,461 | 14,214 | 15,120 |
Total operating revenues | 3,387,614 | 3,151,802 | 2,543,894 |
Operating costs and expenses | ' | ' | ' |
Operating costs, excluding depreciation | 1,852,768 | 1,750,510 | 1,432,602 |
Depreciation | 455,623 | 387,549 | 315,468 |
Research and development | 15,235 | 16,060 | 15,764 |
General and administrative | 126,250 | 107,307 | 91,452 |
Income from asset sales | -18,923 | -19,223 | -13,903 |
Total operating costs and expenses | 2,430,953 | 2,242,203 | 1,841,383 |
Operating income from continuing operations | 956,661 | 909,599 | 702,511 |
Other income (expense) | ' | ' | ' |
Interest and dividend income | 1,653 | 1,380 | 1,951 |
Interest expense | -6,129 | -8,653 | -17,355 |
Gain on sale of investment securities | 162,121 | ' | 913 |
Other | -9 | 254 | -953 |
Total other income (expense) | 157,636 | -7,019 | -15,444 |
Income from continuing operations before income taxes | 1,114,297 | 902,580 | 687,067 |
Income tax provision | 392,844 | 328,971 | 252,399 |
Income from continuing operations | 721,453 | 573,609 | 434,668 |
Income (loss) from discontinued operations before income taxes | 14,701 | 7,355 | -487 |
Income tax provision (benefit) | -485 | -81 | -5 |
Income (loss) from discontinued operations | 15,186 | 7,436 | -482 |
NET INCOME | $736,639 | $581,045 | $434,186 |
Basic earnings per common share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $6.75 | $5.35 | $4.06 |
Income from discontinued operations (in dollars per share) | $0.14 | $0.07 | ' |
Net income (in dollars per share) | $6.89 | $5.42 | $4.06 |
Diluted earnings per common share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $6.65 | $5.27 | $3.99 |
Income from discontinued operations (in dollars per share) | $0.14 | $0.07 | ' |
Net income (in dollars per share) | $6.79 | $5.34 | $3.99 |
Weighted average shares outstanding (in thousands): | ' | ' | ' |
Basic (in shares) | 106,286 | 106,819 | 106,643 |
Diluted (in shares) | 107,879 | 108,377 | 108,632 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Net income | $736,639 | $581,045 | $434,186 |
Other comprehensive income, net of income taxes: | ' | ' | ' |
Unrealized appreciation on securities, net of income taxes of $34.2 million at September 30, 2013, $37.2 million at September 30, 2012 and $11.0 million at September 30, 2011 | 46,853 | 63,725 | 18,414 |
Reclassification of realized gains in net income, net of income taxes of ($60.8) million at September 30, 2013 | -92,543 | ' | ' |
Minimum pension liability adjustments, net of income taxes of $6.6 million at September 30, 2013, $2.4 million at September 30, 2012 and ($2.2) million at September 30, 2011 | 11,413 | 4,174 | -3,613 |
Other comprehensive income (loss) | -34,277 | 67,899 | 14,801 |
Comprehensive income | $702,362 | $648,944 | $448,987 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Unrealized appreciation on securities, income taxes | $34.20 | $37.20 | $11 |
Reclassification of realized gains in net income, income taxes | -60.8 | ' | ' |
Minimum pension liability adjustments, income taxes | $6.60 | $2.40 | ($2.20) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $447,868 | $96,095 |
Accounts receivable, less reserve of $4,795 in 2013 and $942 in 2012 | 621,420 | 620,489 |
Inventories | 88,866 | 78,777 |
Deferred income taxes | 16,414 | 17,555 |
Prepaid expenses and other | 79,938 | 74,693 |
Current assets of discontinued operations | 3,705 | 7,619 |
Total current assets | 1,258,211 | 895,228 |
INVESTMENTS | 316,154 | 451,144 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | ' | ' |
Contract drilling equipment | 6,493,606 | 5,743,354 |
Construction in progress | 153,252 | 215,754 |
Real estate properties | 63,542 | 62,177 |
Other | 310,515 | 284,813 |
PROPERTY, PLANT AND EQUIPMENT, gross | 7,020,915 | 6,306,098 |
Less-Accumulated depreciation | 2,344,812 | 1,954,527 |
Net property, plant and equipment | 4,676,103 | 4,351,571 |
NONCURRENT ASSETS: | ' | ' |
Other assets | 14,359 | 23,142 |
TOTAL ASSETS | 6,264,827 | 5,721,085 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 144,379 | 159,420 |
Accrued liabilities | 189,684 | 176,615 |
Long-term debt due within one year | 115,000 | 40,000 |
Current liabilities of discontinued operations | 3,210 | 5,129 |
Total current liabilities | 452,273 | 381,164 |
NONCURRENT LIABILITIES: | ' | ' |
Long-term debt | 80,000 | 195,000 |
Deferred income taxes | 1,222,981 | 1,209,040 |
Other | 65,351 | 98,393 |
Noncurrent liabilities of discontinued operations | 495 | 2,490 |
Total noncurrent liabilities | 1,368,827 | 1,504,923 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock, $.10 par value, 160,000,000 shares authorized, 108,738,577 and 107,598,889 shares issued as of September 30, 2013 and 2012, respectively, and 106,716,970 and 105,697,693 shares outstanding as of September 30, 2013 and 2012, respectively | 10,874 | 10,760 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ' | ' |
Additional paid-in capital | 288,758 | 236,240 |
Retained earnings | 4,102,663 | 3,505,295 |
Accumulated other comprehensive income | 132,530 | 166,807 |
Total shareholders' equity before treasury stock | 4,534,825 | 3,919,102 |
Less treasury stock, 2,021,607 shares in 2013 and 1,901,196 shares in 2012, at cost | 91,098 | 84,104 |
Total shareholders' equity | 4,443,727 | 3,834,998 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $6,264,827 | $5,721,085 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Accounts receivable, reserve (in dollars) | $4,795 | $942 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 108,738,577 | 107,598,889 |
Common stock, shares outstanding | 106,716,970 | 105,697,693 |
Preferred stock, no par value (in dollars per share) | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 2,021,607 | 1,901,196 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Sep. 30, 2010 | $2,807,465 | $10,706 | $191,900 | $2,547,917 | $84,107 | ($27,165) | ' |
Balance (in shares) at Sep. 30, 2010 | ' | ' | ' | ' | ' | 1,239,000 | ' |
Balance (in shares) at Sep. 30, 2010 | ' | 107,058,000 | ' | ' | ' | ' | ' |
Comprehensive Income: | ' | ' | ' | ' | ' | ' | ' |
Net income | 434,186 | ' | ' | 434,186 | ' | ' | 434,186 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Change in value on available-for-sale securities, net of income taxes | 18,414 | ' | ' | ' | 18,414 | ' | 18,414 |
Amortization of net periodic benefit costs - net of actuarial gain (loss) | -3,613 | ' | ' | ' | -3,613 | ' | -3,613 |
Other comprehensive income (loss) | 14,801 | ' | ' | ' | ' | ' | 14,801 |
Comprehensive income | 448,987 | ' | ' | ' | ' | ' | 448,987 |
Dividends declared ($1.30, $.28 and $.26 per share for the years ended 2013, 2012 and 2011, respectively) | -27,893 | ' | ' | -27,893 | ' | ' | ' |
Exercise of stock options | 15,441 | 18 | -3,942 | ' | ' | 19,365 | ' |
Exercise of stock options (in shares) | ' | 185,000 | ' | ' | ' | -948,000 | ' |
Tax benefit of stock-based awards, including excess tax benefits of $10.7, $3.6 and $13.4 million for the years ended 2013, 2012 and 2011, respectively | 13,946 | ' | 13,946 | ' | ' | ' | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes | ' | ' | -3,096 | ' | ' | 3,096 | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | ' | ' | ' | ' | ' | -134,000 | ' |
Stock-based compensation | 12,101 | ' | 12,101 | ' | ' | ' | ' |
Balance at Sep. 30, 2011 | 3,270,047 | 10,724 | 210,909 | 2,954,210 | 98,908 | -4,704 | ' |
Balance (in shares) at Sep. 30, 2011 | ' | ' | ' | ' | ' | 157,000 | ' |
Balance (in shares) at Sep. 30, 2011 | ' | 107,243,000 | ' | ' | ' | ' | ' |
Comprehensive Income: | ' | ' | ' | ' | ' | ' | ' |
Net income | 581,045 | ' | ' | 581,045 | ' | ' | 581,045 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Change in value on available-for-sale securities, net of income taxes | 63,725 | ' | ' | ' | 63,725 | ' | 63,725 |
Amortization of net periodic benefit costs - net of actuarial gain (loss) | 4,174 | ' | ' | ' | 4,174 | ' | 4,174 |
Other comprehensive income (loss) | 67,899 | ' | ' | ' | ' | ' | 67,899 |
Comprehensive income | 648,944 | ' | ' | ' | ' | ' | 648,944 |
Dividends declared ($1.30, $.28 and $.26 per share for the years ended 2013, 2012 and 2011, respectively) | -29,960 | ' | ' | -29,960 | ' | ' | ' |
Exercise of stock options | 2,673 | 32 | 5,398 | ' | ' | -2,757 | ' |
Exercise of stock options (in shares) | ' | 315,000 | ' | ' | ' | 47,000 | ' |
Tax benefit of stock-based awards, including excess tax benefits of $10.7, $3.6 and $13.4 million for the years ended 2013, 2012 and 2011, respectively | 4,340 | ' | 4,340 | ' | ' | ' | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes | -1,514 | 4 | -2,485 | ' | ' | 967 | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | ' | 41,000 | ' | ' | ' | -51,000 | ' |
Repurchase of common stock | -77,610 | ' | ' | ' | ' | -77,610 | ' |
Repurchase of common stock (in shares) | 1,747,819 | ' | ' | ' | ' | 1,748,000 | ' |
Stock-based compensation | 18,078 | ' | 18,078 | ' | ' | ' | ' |
Balance at Sep. 30, 2012 | 3,834,998 | 10,760 | 236,240 | 3,505,295 | 166,807 | -84,104 | ' |
Balance (in shares) at Sep. 30, 2012 | 1,901,196 | ' | ' | ' | ' | 1,901,000 | ' |
Balance (in shares) at Sep. 30, 2012 | 107,598,889 | 107,599,000 | ' | ' | ' | ' | ' |
Comprehensive Income: | ' | ' | ' | ' | ' | ' | ' |
Net income | 736,639 | ' | ' | 736,639 | ' | ' | 736,639 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Change in value on available-for-sale securities, net of income taxes | -45,690 | ' | ' | ' | -45,690 | ' | -45,690 |
Amortization of net periodic benefit costs - net of actuarial gain (loss) | 11,413 | ' | ' | ' | 11,413 | ' | 11,413 |
Other comprehensive income (loss) | -34,277 | ' | ' | ' | ' | ' | -34,277 |
Comprehensive income | 702,362 | ' | ' | ' | ' | ' | 702,362 |
Dividends declared ($1.30, $.28 and $.26 per share for the years ended 2013, 2012 and 2011, respectively) | -139,271 | ' | ' | -139,271 | ' | ' | ' |
Exercise of stock options | 13,317 | 106 | 21,746 | ' | ' | -8,535 | ' |
Exercise of stock options (in shares) | ' | 1,057,000 | ' | ' | ' | 162,000 | ' |
Tax benefit of stock-based awards, including excess tax benefits of $10.7, $3.6 and $13.4 million for the years ended 2013, 2012 and 2011, respectively | 10,727 | ' | 10,727 | ' | ' | ' | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes | -1,677 | 8 | -3,226 | ' | ' | 1,541 | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | ' | 83,000 | ' | ' | ' | -41,000 | ' |
Repurchase of common stock (in shares) | 0 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 23,271 | ' | 23,271 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $4,443,727 | $10,874 | $288,758 | $4,102,663 | $132,530 | ($91,098) | ' |
Balance (in shares) at Sep. 30, 2013 | 2,021,607 | ' | ' | ' | ' | 2,022,000 | ' |
Balance (in shares) at Sep. 30, 2013 | 108,738,577 | 108,739,000 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Consolidated Statements of Shareholders' Equity | ' | ' | ' |
Dividends declared, per share (in dollars per share) | $1.30 | $0.28 | $0.26 |
Tax benefit of stock-based awards, excess tax benefits | $10.70 | $3.60 | $13.40 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $736,639 | $581,045 | $434,186 |
Adjustment for (income) loss from discontinued operations | -15,186 | -7,436 | 482 |
Income from continuing operations | 721,453 | 573,609 | 434,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 455,623 | 387,549 | 315,468 |
Provision for bad debt | 3,875 | 205 | 106 |
Stock-based compensation | 23,271 | 18,078 | 12,101 |
Gain on sale of investment securities | -162,121 | ' | -913 |
Income from asset sales | -18,923 | -19,223 | -13,903 |
Deferred income tax expense | 29,557 | 196,931 | 187,651 |
Other | 2,490 | ' | ' |
Change in assets and liabilities: | ' | ' | ' |
Accounts receivable | -4,806 | -160,154 | -2,987 |
Inventories | -12,289 | -22,170 | -11,005 |
Prepaid expenses and other | 5,730 | -27,758 | 12,623 |
Accounts payable | -52,076 | 54,906 | 17,362 |
Accrued liabilities | 24,259 | 195 | 20,483 |
Deferred income taxes | -1,673 | -180 | 251 |
Other noncurrent liabilities | -17,371 | -1,592 | 6,129 |
Net cash provided by operating activities from continuing operations | 996,999 | 1,000,396 | 978,034 |
Net cash provided by (used in) operating activities from discontinued operations | 186 | -64 | -482 |
Net cash provided by operating activities | 997,185 | 1,000,332 | 977,552 |
INVESTING ACTIVITIES: | ' | ' | ' |
Capital expenditures | -809,066 | -1,097,680 | -694,264 |
Acquisition of TerraVici Drilling Solutions | ' | ' | -4,000 |
Proceeds from asset sales | 28,026 | 39,894 | 26,795 |
Proceeds from sale of investments | 232,221 | ' | 3,932 |
Net cash used in investing activities from continuing operations | -548,819 | -1,057,786 | -667,537 |
Net cash provided by investing activities from discontinued operations | 15,000 | 7,500 | ' |
Net cash used in investing activities | -533,819 | -1,050,286 | -667,537 |
FINANCING ACTIVITIES: | ' | ' | ' |
Payments on long-term debt | -40,000 | -115,000 | ' |
Proceeds from line of credit | ' | 20,000 | 10,000 |
Payments on line of credit | ' | -20,000 | -20,000 |
Repurchase of common stock | ' | -77,610 | ' |
Dividends paid | -93,053 | -30,049 | -26,741 |
Exercise of stock options | 13,317 | 2,673 | 15,441 |
Tax withholdings related to net share settlements of restricted stock | -1,677 | -1,514 | ' |
Excess tax benefit from stock-based compensation | 9,820 | 3,303 | 12,511 |
Net cash used in financing activities | -111,593 | -218,197 | -8,789 |
Net increase (decrease) in cash and cash equivalents | 351,773 | -268,151 | 301,226 |
Cash and cash equivalents, beginning of period | 96,095 | 364,246 | 63,020 |
Cash and cash equivalents, end of period | $447,868 | $96,095 | $364,246 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
PRINCIPLES OF CONSOLIDATION | |||||||||||
The consolidated financial statements include the accounts of Helmerich & Payne, Inc. and its wholly-owned subsidiaries. Fiscal years of our foreign operations end on August 31 to facilitate reporting of consolidated results. There were no significant intervening events that materially affected the financial statements. | |||||||||||
BASIS OF PRESENTATION | |||||||||||
We classified our former Venezuelan operation, an operating segment within the International Land segment, as a discontinued operation in the third quarter of fiscal 2010, as more fully described in Note 2. Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates only to our continuing operations. | |||||||||||
FOREIGN CURRENCIES | |||||||||||
The functional currency for all our foreign operations is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the year. Gains and losses from remeasurement of foreign currency financial statements and foreign currency translations into U.S. dollars are included in direct operating costs. Included in direct operating costs are aggregate foreign currency remeasurement and transaction gains of $0.7 million and $0.3 million in fiscal 2013 and 2012, respectively, and losses totalling $1.2 million in fiscal 2011. | |||||||||||
USE OF ESTIMATES | |||||||||||
The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
RECENTLY ADOPTED ACCOUNTING STANDARDS | |||||||||||
On October 1, 2012, we adopted Accounting Standards Update ("ASU") No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU No. 2011-04 is intended to create consistency between U.S. GAAP and International Financial Reporting Standards ("IFRS") on the definition of fair value and on the guidance on how to measure fair value and on what to disclose about fair value measurements. The adoption of these provisions had no material impact on the Consolidated Financial Statements. | |||||||||||
On October 1, 2012, we adopted ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. ASU No. 2011-05 was issued to increase the prominence of other comprehensive income ("OCI") in financial statements. Our presentation of OCI is shown in a separate statement and was applied retrospectively. The adoption had no impact on the amount of OCI reported in the Consolidated Financial Statements. | |||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts, and several "zero-balance" disbursement accounts for funding payroll and accounts payable. As a result of our cash management system, checks issued, but not presented to the banks for payment, may create negative book cash balances. | |||||||||||
RESTRICTED CASH AND CASH EQUIVALENTS | |||||||||||
We had restricted cash and cash equivalents of $25.7 million and $31.0 million at September 30, 2013 and 2012, respectively. The cash is restricted for the purpose of potential insurance claims in our wholly-owned captive insurance company. Of the total at September 30, 2013, $2.0 million is from the initial capitalization of the captive company and management has elected to restrict an additional $23.7 million. The restricted amounts are primarily invested in short-term money market securities. | |||||||||||
The restricted cash and cash equivalents are reflected in the balance sheet as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other | $ | 23,691 | $ | 28,989 | |||||||
Other assets | $ | 2,000 | $ | 2,000 | |||||||
INVENTORIES AND SUPPLIES | |||||||||||
Inventories and supplies are primarily replacement parts and supplies held for use in our drilling operations. Inventories and supplies are valued at the lower of cost (moving average or actual) or market value. | |||||||||||
INVESTMENTS | |||||||||||
We maintain investments in equity securities of certain publicly traded companies. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. | |||||||||||
We regularly review investment securities for impairment based on criteria that include the extent to which the investment's carrying value exceeds its related fair value, the duration of the market decline and the financial strength and specific prospects of the issuer of the security. Unrealized losses that are other than temporary are recognized in earnings. | |||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation. Substantially all property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets (contract drilling equipment, 4-15 years; real estate buildings and equipment, 10-45 years; and other, 2-23 years). Depreciation in the Consolidated Statements of Income includes abandonments of $9.1 million, $16.4 million and $4.9 million for fiscal 2013, 2012 and 2011, respectively. The cost of maintenance and repairs is charged to direct operating cost, while betterments and refurbishments are capitalized. | |||||||||||
We lease office space and equipment for use in operations. Leases are evaluated at inception or at any subsequent material modification and, depending on the lease terms, are classified as either capital leases or operating leases as appropriate under Accounting Standards Codification ("ASC") 840, Leases. We do not have significant capital leases. | |||||||||||
CAPITALIZATION OF INTEREST | |||||||||||
We capitalize interest on major projects during construction. Interest is capitalized based on the average interest rate on related debt. Capitalized interest for fiscal 2013, 2012 and 2011 was $8.8 million, $12.9 million and $8.2 million, respectively. | |||||||||||
VALUATION OF LONG-LIVED ASSETS | |||||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Changes that could prompt such an assessment include a significant decline in revenue or cash margin per day, extended periods of low rig utilization, changes in market demand for a specific asset, obsolescence, completion of specific contracts and/or overall general market conditions. If a review of the long-lived assets indicates that the carrying value of certain of these assets is more than the estimated undiscounted future cash flows, an impairment charge is made to adjust the carrying value down to the estimated fair value of the asset. The fair value of drilling rigs is determined based upon estimated discounted future cash flows or estimated fair market value, if available. Cash flows are estimated by management considering factors such as prospective market demand, recent changes in rig technology and its effect on each rig's marketability, any cash investment required to make a rig marketable, suitability of rig size and make up to existing platforms, and competitive dynamics including industry utilization. Fair value is estimated, if applicable, considering factors such as recent market sales of rigs of other companies and our own sales of rigs, appraisals and other factors. | |||||||||||
SELF-INSURANCE ACCRUALS | |||||||||||
We have accrued a liability for estimated worker's compensation and other casualty claims incurred. The liability for other benefits to former or inactive employees after employment but before retirement is not material. | |||||||||||
DRILLING REVENUES | |||||||||||
Contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Mobilization payments received, and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Reimbursements received for out-of-pocket expenses are recorded as both revenues and direct costs. Reimbursements for fiscal 2013, 2012 and 2011 were $332.5 million, $329.7 million and $251.0 million, respectively. For contracts that are terminated prior to the specified term, early termination payments received by us are recognized as revenues when all contractual requirements are met. | |||||||||||
RENT REVENUES | |||||||||||
We enter into leases with tenants in our rental properties consisting primarily of retail and multi-tenant warehouse space. The lease terms of tenants occupying space in the retail centers and warehouse buildings generally range from three to ten years. Minimum rents are recognized on a straight-line basis over the term of the related leases. Overage and percentage rents are based on tenants' sales volume. Recoveries from tenants for property taxes and operating expenses are recognized in other operating revenues in the Consolidated Statements of Income. Our rent revenues are as follows: | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Minimum rents | $ | 9,009 | $ | 8,757 | $ | 8,941 | |||||
Overage and percentage rents | $ | 1,384 | $ | 1,485 | $ | 1,135 | |||||
At September 30, 2013, minimum future rental income to be received on noncancelable operating leases was as follows: | |||||||||||
Fiscal Year | Amount | ||||||||||
(in thousands) | |||||||||||
2014 | $ | 7,837 | |||||||||
2015 | 6,479 | ||||||||||
2016 | 4,892 | ||||||||||
2017 | 3,999 | ||||||||||
2018 | 2,650 | ||||||||||
Thereafter | 5,790 | ||||||||||
Total | $ | 31,647 | |||||||||
Leasehold improvement allowances are capitalized and amortized over the lease term. | |||||||||||
At September 30, 2013 and 2012, the cost and accumulated depreciation for real estate properties were as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Real estate properties | $ | 63,542 | $ | 62,177 | |||||||
Accumulated depreciation | (41,847 | ) | (40,882 | ) | |||||||
$ | 21,695 | $ | 21,295 | ||||||||
INCOME TAXES | |||||||||||
Current income tax expense is the amount of income taxes expected to be payable for the current year. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of our assets and liabilities. | |||||||||||
We provide for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed in ASC 740, Income Taxes, which is more fully discussed in Note 4. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in other expense in the Consolidated Statements of Income. | |||||||||||
EARNINGS PER SHARE | |||||||||||
Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock. | |||||||||||
STOCK-BASED COMPENSATION | |||||||||||
We record compensation expense associated with stock options in accordance with ASC 718, Compensation—Stock Compensation. Compensation expense is determined using a fair-value-based measurement method for all awards granted. In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate, volatility, dividend yield and expected remaining term of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Stock-based compensation is recognized on a straight-line basis over the requisite service periods of the stock awards, which is generally the vesting period. Compensation expense related to stock options is recorded as a component of general and administrative expenses in the Consolidated Statements of Income. | |||||||||||
TREASURY STOCK | |||||||||||
Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital using the average-cost method. | |||||||||||
NEW ACCOUNTING STANDARDS | |||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-2, Other Comprehensive Income. This ASU amends ASC 220, Comprehensive Income, and supersedes and replaces ASU 2011-05, Presentation of Comprehensive Income, and ASU 2011-12, Comprehensive Income, to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. The standard does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance does require an entity to provide enhanced disclosures to present separately by component reclassifications out of accumulated other comprehensive income. The amendments in this ASU are effective prospectively for reporting periods beginning after December 15, 2012. We do not believe adoption of this guidance will have a material impact on our Consolidated Financial Statements. | |||||||||||
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
NOTE 2 DISCONTINUED OPERATIONS | |||||||||||
On June 30, 2010, the Official Gazette of Venezuela published the Decree of Venezuelan President Hugo Chavez, which authorized the "forceful acquisition" of eleven rigs owned by our Venezuelan subsidiary. The Decree also authorized the seizure of "all the personal and real property and other improvements" used by our Venezuelan subsidiary in its drilling operations. The seizing of our assets became effective June 30, 2010, and met the criteria established for recognition as discontinued operations under accounting standards for presentation of financial statements. Therefore, operations from the Venezuelan subsidiary, an operating segment previously within the International Land segment, have been classified as discontinued operations in our Consolidated Financial Statements. | |||||||||||
Summarized operating results from discontinued operations are as follows: | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Revenue | $ | — | $ | — | $ | — | |||||
Income (loss) before income taxes | 14,701 | 7,355 | (487 | ) | |||||||
Income tax benefit | (485 | ) | (81 | ) | (5 | ) | |||||
Income (loss) from discontinued operations | $ | 15,186 | $ | 7,436 | $ | (482 | ) | ||||
Income from discontinued operations in fiscal 2013 and 2012 is attributable to proceeds from arbitration, as more fully described in Note 13, net of expenses incurred for in-country obligations. | |||||||||||
Significant categories of assets and liabilities from discontinued operations are as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Other current assets | $ | 3,705 | $ | 7,619 | |||||||
Total assets | $ | 3,705 | $ | 7,619 | |||||||
Total current liabilities | $ | 3,210 | $ | 5,129 | |||||||
Total noncurrent liabilities | 495 | 2,490 | |||||||||
Total liabilities | $ | 3,705 | $ | 7,619 | |||||||
Other current assets consist of restricted cash to meet remaining in-country current obligations. Liabilities consist of municipal and income taxes payable and social obligations due within the country of Venezuela. | |||||||||||
DEBT
DEBT | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
DEBT | ' | |||||||
DEBT | ' | |||||||
NOTE 3 DEBT | ||||||||
At September 30, 2013 and 2012, we had $80 million and $195 million, respectively, in unsecured long-term debt outstanding at rates and maturities shown in the following table: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Unsecured intermediate debt issued August 15, 2002: | ||||||||
Series D, due August 15, 2014, 6.56% | $ | 75,000 | $ | 75,000 | ||||
Unsecured senior notes issued July 21, 2009: | ||||||||
Due July 21, 2013, 6.10% | — | 40,000 | ||||||
Due July 21, 2014, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2015, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2016, 6.10% | 40,000 | 40,000 | ||||||
$ | 195,000 | $ | 235,000 | |||||
Less long-term debt due within one year | 115,000 | 40,000 | ||||||
Long-term debt | $ | 80,000 | $ | 195,000 | ||||
The intermediate unsecured debt outstanding at September 30, 2013 matures August 15, 2014 and carries an interest rate of 6.56 percent, which is paid semi-annually. The terms require that we maintain a ratio of debt to total capitalization of less than 55 percent. The debt is held by various entities. | ||||||||
We have $120 million senior unsecured fixed-rate notes outstanding at September 30, 2013 that mature over a period from July 2014 to July 2016. Interest on the notes is paid semi-annually based on an annual rate of 6.10 percent. Annual principal repayments of $40 million are due July 2014 through July 2016. We have complied with our financial covenants which require us to maintain a funded leverage ratio of less than 55 percent and an interest coverage ratio (as defined) of not less than 2.50 to 1.00. | ||||||||
We have a $300 million unsecured revolving credit facility that will mature May 25, 2017. The credit facility has $100 million available to use for letters of credit. We anticipate that the majority of any borrowings under the facility will accrue interest at a spread over the London Interbank Offered Rate (LIBOR). We will also pay a commitment fee based on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined according to a scale based on a ratio of our total debt to total capitalization. The spread over LIBOR ranges from 1.125 percent to 1.75 percent per annum and commitment fees range from .15 percent to .35 percent per annum. Based on our debt to total capitalization on September 30, 2013, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively. Financial covenants in the facility require us to maintain a funded leverage ratio (as defined) of less than 50 percent and an interest coverage ratio (as defined) of not less than 3.00 to 1.00. The credit facility contains additional terms, conditions, restrictions, and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality. As of September 30, 2013, there were no borrowings, but there were two letters of credit outstanding in the amount of $27.2 million. The two outstanding letters of credit replaced two collateral trusts that were terminated during the first quarter of fiscal 2013. Upon termination, an amount totaling $26.1 million was returned to us. At September 30, 2013, we had $272.8 million available to borrow under our $300 million unsecured credit facility. Subsequent to September 30, 2013, we issued a third letter of credit against the credit facility in the amount of $3.5 million, which reduced the amount available to borrow to $269.3 million. | ||||||||
At September 30, 2013, we had two letters of credit outstanding, totaling $12 million that were issued to support international operations. These letters of credit were issued separately from the $300 million credit facility so they do not reduce the available borrowing capacity discussed in the previous paragraph. | ||||||||
The applicable agreements for all unsecured debt described in this Note 3 contain additional terms, conditions and restrictions that we believe are usual and customary in unsecured debt arrangements for companies that are similar in size and credit quality. At September 30, 2013, we were in compliance with all debt covenants. | ||||||||
At September 30, 2013, aggregate maturities of long-term debt are as follows (in thousands): | ||||||||
Years ending | ||||||||
September 30, | ||||||||
2014 | $ | 115,000 | ||||||
2015 | 40,000 | |||||||
2016 | 40,000 | |||||||
$ | 195,000 | |||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 4 INCOME TAXES | |||||||||||
The components of the provision for income taxes are as follows: | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 315,820 | $ | 108,297 | $ | 42,377 | |||||
Foreign | 14,551 | 13,201 | 14,259 | ||||||||
State | 32,916 | 10,542 | 8,112 | ||||||||
363,287 | 132,040 | 64,748 | |||||||||
Deferred: | |||||||||||
Federal | 35,530 | 196,373 | 185,076 | ||||||||
Foreign | (1,409 | ) | (6,484 | ) | (4,117 | ) | |||||
State | (4,564 | ) | 7,042 | 6,692 | |||||||
29,557 | 196,931 | 187,651 | |||||||||
Total provision | $ | 392,844 | $ | 328,971 | $ | 252,399 | |||||
The amounts of domestic and foreign income before income taxes are as follows: | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 1,071,435 | $ | 886,484 | $ | 666,073 | |||||
Foreign | 42,862 | 16,096 | 20,994 | ||||||||
$ | 1,114,297 | $ | 902,580 | $ | 687,067 | ||||||
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Recoverability of any tax assets are evaluated and necessary allowances are provided. The carrying value of the net deferred tax assets is based on management's judgments using certain estimates and assumptions that we will be able to generate sufficient future taxable income in certain tax jurisdictions to realize the benefits of such assets. If these estimates and related assumptions change in the future, additional valuation allowances may be recorded against the deferred tax assets resulting in additional income tax expense in the future. | |||||||||||
The components of our net deferred tax liabilities are as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | $ | 1,161,134 | $ | 1,103,769 | |||||||
Available-for-sale securities | 117,567 | 154,463 | |||||||||
Other | 55 | 4 | |||||||||
Total deferred tax liabilities | 1,278,756 | 1,258,236 | |||||||||
Deferred tax assets: | |||||||||||
Pension reserves | 2,146 | 9,482 | |||||||||
Self-insurance reserves | 8,357 | 7,737 | |||||||||
Net operating loss and foreign tax credit carryforwards | 54,867 | 59,730 | |||||||||
Financial accruals | 48,963 | 39,833 | |||||||||
Other | 7,487 | 6,533 | |||||||||
Total deferred tax assets | 121,820 | 123,315 | |||||||||
Valuation allowance | 49,631 | 56,564 | |||||||||
Net deferred tax assets | 72,189 | 66,751 | |||||||||
Net deferred tax liabilities | $ | 1,206,567 | $ | 1,191,485 | |||||||
The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. | |||||||||||
As of September 30, 2013, we had state and foreign net operating loss carryforwards for income tax purposes of $15.6 million and $35.5 million, respectively, and foreign tax credit carryforwards of approximately $45.2 million (of which $41.4 million is reflected as a deferred tax asset in our Consolidated Financial Statements prior to consideration of our valuation allowance) which will expire in fiscal 2014 through 2023. The valuation allowance is primarily attributable to state and foreign net operating loss carryforwards of $1.2 million and $11.0 million, respectively, and foreign tax credit carryforwards of $37.4 million which more likely than not will not be utilized. | |||||||||||
Effective income tax rates as compared to the U.S. Federal income tax rate are as follows: | |||||||||||
Years Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Effect of foreign taxes | 1.1 | 0.7 | 0.6 | ||||||||
State income taxes, net of federal tax benefit | 1.5 | 1.4 | 1.8 | ||||||||
U.S. domestic production activities | (2.1 | ) | (1.1 | ) | (0.5 | ) | |||||
Other | (0.2 | ) | 0.4 | (0.2 | ) | ||||||
Effective income tax rate | 35.3 | % | 36.4 | % | 36.7 | % | |||||
We recognize accrued interest related to unrecognized tax benefits in interest expense, and penalties in other expense in the Consolidated Statements of Income. As of September 30, 2013 and 2012, we had accrued interest and penalties of $5.2 million and $6.1 million, respectively. | |||||||||||
A reconciliation of the change in our gross unrecognized tax benefits for the fiscal year ended September 30, 2013 and 2012 is as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Unrecognized tax benefits at October 1, | $ | 8,438 | $ | 6,878 | |||||||
Gross decreases—tax positions in prior periods | (914 | ) | (4 | ) | |||||||
Gross increases—tax positions in prior periods | 1,896 | 2,632 | |||||||||
Gross decreases—current period effect of tax positions | (437 | ) | (384 | ) | |||||||
Gross increases—current period effect of tax positions | 147 | 142 | |||||||||
Expiration of statute of limitations for assessments | (1,001 | ) | (826 | ) | |||||||
Unrecognized tax benefits at September 30, | $ | 8,129 | $ | 8,438 | |||||||
As of September 30, 2013 and September 30, 2012, our liability for unrecognized tax benefits would affect the effective tax rate if recognized. The liabilities for unrecognized tax benefits and related interest and penalties are included in other noncurrent liabilities in our Consolidated Balance Sheets. | |||||||||||
For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax position associated with our international operations that could result in increases or decreases of our unrecognized tax benefits. However, we believe it is reasonably possible that the reserve for uncertain tax positions may increase by approximately $7.6 million to $10.2 million during the next 12 months due to an international matter. | |||||||||||
We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. The tax years that remain open to examination by U.S. federal and state jurisdictions include fiscal 2009 through 2012. Audits in foreign jurisdictions are generally complete through fiscal 2001. | |||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2013 | |
SHAREHOLDERS' EQUITY | ' |
SHAREHOLDERS' EQUITY | ' |
NOTE 5 SHAREHOLDERS' EQUITY | |
On September 30, 2013, we had 106,716,970 outstanding preferred stock purchase rights ("Rights") pursuant to the terms of the Rights Agreement dated January 8, 1996, as amended by Amendment No. 1 dated December 8, 2005. As adjusted for the two-for-one stock splits in fiscal 1998 and fiscal 2006, and as long as the Rights are not separately transferable, one-half Right attaches to each share of our common stock. Under the terms of the Rights Agreement each Right entitles the holder thereof to purchase one full unit consisting of one one-thousandth of a share of Series A Junior Participating Preferred Stock ("Preferred Stock"), without par value, at a price of $250 per unit. The exercise price and the number of units of Preferred Stock issuable on exercise of the Rights are subject to adjustment in certain cases to prevent dilution. The Rights will be attached to the common stock certificates and are not exercisable or transferable apart from the common stock, until ten business days after a person acquires 15 percent or more of the outstanding common stock or ten business days following the commencement of a tender offer or exchange offer that would result in a person owning 15 percent or more of the outstanding common stock. In that event, each holder of a Right (other than the acquiring person) shall have the right to receive, upon exercise of the Right, common stock of the Company having a value equal to two times the exercise price of the Right. In the event we are acquired in a merger or certain other business combination transactions (including one in which we are the surviving corporation), or more than 50 percent of our assets or earning power is sold or transferred, each holder of a Right shall have the right to receive, upon exercise of the Right, common stock of the acquiring company having a value equal to two times the exercise price of the Right. The Rights are redeemable under certain circumstances at $0.01 per Right and will expire, unless earlier redeemed, on January 31, 2016. | |
The Company has authorization from the Board of Directors for the repurchase of up to four million common shares in any calendar year. The repurchases may be made using our cash and cash equivalents or other available sources. During fiscal 2012, we purchased 1,747,819 common shares at an aggregate cost of $77.6 million, which are held as treasury shares. We had no purchases of common shares in fiscal 2013. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||||||
NOTE 6 STOCK-BASED COMPENSATION | ||||||||||||||||||||
On March 2, 2011, the 2010 Long-Term Incentive Plan (the "2010 Plan") was approved by our stockholders. The 2010 Plan, among other things, authorizes the Board of Directors to grant nonqualified stock options, restricted stock awards and stock appreciation rights to selected employees and to non-employee Directors. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. We have the right to satisfy option exercises from treasury shares and from authorized but unissued shares. There were 364,624 nonqualified stock options and 307,100 shares of restricted stock awards granted under the 2010 Plan during fiscal 2013. Awards outstanding in the 2005 Long-Term Incentive Plan (the "2005 Plan") and one prior equity plan remain subject to the terms and conditions of those plans. | ||||||||||||||||||||
A summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense in fiscal 2013, 2012 and 2011 is as follows: | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Compensation expense | ||||||||||||||||||||
Stock options | $ | 11,512 | $ | 9,791 | $ | 7,224 | ||||||||||||||
Restricted stock | 11,759 | 8,287 | 4,877 | |||||||||||||||||
$ | 23,271 | $ | 18,078 | $ | 12,101 | |||||||||||||||
Benefits of tax deductions in excess of recognized compensation cost of $9.8 million, $3.3 million and $12.5 million are reported as a financing cash flow in the Consolidated Statements of Cash Flows for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
STOCK OPTIONS | ||||||||||||||||||||
Vesting requirements for stock options are determined by the Human Resources Committee of our Board of Directors. Options currently outstanding began vesting one year after the grant date with 25 percent of the options vesting for four consecutive years. | ||||||||||||||||||||
We use the Black-Scholes formula to estimate the fair value of stock options granted to employees. The fair value of the options is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. The weighted-average fair value calculations for options granted within the fiscal period are based on the following weighted-average assumptions set forth in the table below. Options that were granted in prior periods are based on assumptions prevailing at the date of grant. | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Risk-free interest rate | 0.7 | % | 1 | % | 1.9 | % | ||||||||||||||
Expected stock volatility | 53.9 | % | 53.3 | % | 51.6 | % | ||||||||||||||
Dividend yield | 1.1 | % | 0.4 | % | 0.5 | % | ||||||||||||||
Expected term (in years) | 5.5 | 5.5 | 5.5 | |||||||||||||||||
Risk-Free Interest Rate. The risk-free interest rate is based on U.S. Treasury securities for the expected term of the option. | ||||||||||||||||||||
Expected Volatility Rate. Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the option. | ||||||||||||||||||||
Expected Dividend Yield. The dividend yield is based on our current dividend yield. | ||||||||||||||||||||
Expected Term. The expected term of the options granted represents the period of time that they are expected to be outstanding. We estimate the expected term of options granted based on historical experience with grants and exercises. | ||||||||||||||||||||
Based on these calculations, the weighted-average fair value per option granted to acquire a share of common stock was $23.80, $27.70 and $22.20 per share for fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
The following summary reflects the stock option activity for our common stock and related information for fiscal 2013, 2012 and 2011 (shares in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Options | Weighted-Average | Options | Weighted-Average | Options | Weighted-Average | |||||||||||||||
Exercise Price | Exercise Price | Exercise Price | ||||||||||||||||||
Outstanding at October 1, | 4,690 | $ | 29.56 | 4,589 | $ | 25.84 | 5,572 | $ | 22.82 | |||||||||||
Granted | 365 | 54.18 | 456 | 59.68 | 324 | 47.94 | ||||||||||||||
Exercised | (1,057 | ) | 20.68 | (314 | ) | 17.24 | (1,289 | ) | 18.24 | |||||||||||
Forfeited/Expired | (7 | ) | 52.32 | (41 | ) | 42.21 | (18 | ) | 34.06 | |||||||||||
Outstanding on September 30, | 3,991 | $ | 34.12 | 4,690 | $ | 29.56 | 4,589 | $ | 25.84 | |||||||||||
Exercisable on September 30, | 3,063 | $ | 28.48 | 3,575 | $ | 24.66 | 3,287 | $ | 22.35 | |||||||||||
Shares available to grant | 4,116 | 5,082 | 6,000 | |||||||||||||||||
The following table summarizes information about stock options at September 30, 2013 (shares in thousands): | ||||||||||||||||||||
Outstanding Stock Options | Exercisable Stock Options | |||||||||||||||||||
Range of Exercise Prices | Options | Weighted-Average | Weighted-Average | Options | Weighted-Average | |||||||||||||||
Remaining Life | Exercise Price | Exercise Price | ||||||||||||||||||
$12.08 to $21.065 | 1,254 | 2.9 | $ | 17.77 | 1,254 | $ | 17.77 | |||||||||||||
$26.895 to $38.015 | 1,654 | 4.1 | $ | 33.04 | 1,522 | $ | 32.62 | |||||||||||||
$47.29 to $59.76 | 1,083 | 8.4 | $ | 54.71 | 287 | $ | 53.28 | |||||||||||||
$12.08 to $59.76 | 3,991 | 4.9 | $ | 34.12 | 3,063 | $ | 28.48 | |||||||||||||
At September 30, 2013, the weighted-average remaining life of exercisable stock options was 3.9 years and the aggregate intrinsic value was $124.0 million with a weighted-average exercise price of $28.48 per share. | ||||||||||||||||||||
The number of options vested or expected to vest at September 30, 2013 was 3,973,663 with an aggregate intrinsic value of $138.6 million and a weighted-average exercise price of $34.07 per share. | ||||||||||||||||||||
As of September 30, 2013, the unrecognized compensation cost related to the stock options was $9.3 million. That cost is expected to be recognized over a weighted-average period of 2.4 years. | ||||||||||||||||||||
The total intrinsic value of options exercised during fiscal 2013, 2012 and 2011 was $40.4 million, $12.0 million and $50.5 million, respectively. | ||||||||||||||||||||
The grant date fair value of shares vested during fiscal 2013, 2012 and 2011 was $9.3 million, $8.1 million and $7.9 million, respectively. | ||||||||||||||||||||
RESTRICTED STOCK | ||||||||||||||||||||
Restricted stock awards consist of our common stock and are time-vested over three to six years. We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards under the 2010 Plan is determined based on the closing price of our shares on the grant date. As of September 30, 2013, there was $17.5 million of total unrecognized compensation cost related to unvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 2.7 years. | ||||||||||||||||||||
A summary of the status of our restricted stock awards as of September 30, 2013, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2013, 2012 and 2011, is as follows (share amounts in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Shares | Weighted-Average | Shares | Weighted-Average | Shares | Weighted-Average | |||||||||||||||
Grant Date Fair | Grant Date Fair | Grant Date Fair | ||||||||||||||||||
Value per Share | Value per Share | Value per Share | ||||||||||||||||||
Outstanding at October 1, | 430 | $ | 52.52 | 323 | $ | 42.38 | 289 | $ | 35.23 | |||||||||||
Granted | 307 | 54.18 | 244 | 59.76 | 169 | 47.94 | ||||||||||||||
Vested (1) | (155 | ) | 45.88 | (119 | ) | 40.21 | (134 | ) | 33.92 | |||||||||||
Forfeited/Expired | (6 | ) | 54.67 | (18 | ) | 49.75 | (1 | ) | 47.94 | |||||||||||
Outstanding on September 30, | 576 | $ | 55.17 | 430 | $ | 52.52 | 323 | $ | 42.38 | |||||||||||
-1 | ||||||||||||||||||||
The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. | ||||||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
NOTE 7 EARNINGS PER SHARE | |||||||||||
ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividend or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. | |||||||||||
Basic earnings per share is computed utilizing the two-class method and is calculated based on weighted-average number of common shares outstanding during the periods presented. | |||||||||||
Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock. | |||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 721,453 | $ | 573,609 | $ | 434,668 | |||||
Income (loss) from discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
Net income | 736,639 | 581,045 | 434,186 | ||||||||
Adjustment for basic earnings per share | |||||||||||
Earnings allocated to unvested shareholders | (3,842 | ) | (2,246 | ) | (1,295 | ) | |||||
Numerator for basic earnings per share: | |||||||||||
From continuing operations | 717,611 | 571,363 | 433,373 | ||||||||
From discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
732,797 | 578,799 | 432,891 | |||||||||
Adjustment for diluted earnings per share: | |||||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 46 | 31 | 22 | ||||||||
Numerator for diluted earnings per share: | |||||||||||
From continuing operations | 717,657 | 571,394 | 433,395 | ||||||||
From discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
$ | 732,843 | $ | 578,830 | $ | 432,913 | ||||||
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average shares | 106,286 | 106,819 | 106,643 | ||||||||
Effect of dilutive shares from stock options and restricted stock | 1,593 | 1,558 | 1,989 | ||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares | 107,879 | 108,377 | 108,632 | ||||||||
Basic earnings per common share: | |||||||||||
Income from continuing operations | $ | 6.75 | $ | 5.35 | $ | 4.06 | |||||
Income from discontinued operations | 0.14 | 0.07 | — | ||||||||
Net income | $ | 6.89 | $ | 5.42 | $ | 4.06 | |||||
Diluted earnings per common share: | |||||||||||
Income from continuing operations | $ | 6.65 | $ | 5.27 | $ | 3.99 | |||||
Income from discontinued operations | 0.14 | 0.07 | — | ||||||||
Net income | $ | 6.79 | $ | 5.34 | $ | 3.99 | |||||
The following shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except | |||||||||||
per share amounts) | |||||||||||
Shares excluded from calculation of diluted earnings per share | 743 | 446 | 310 | ||||||||
Weighted-average price per share | $ | 57.27 | $ | 59.68 | $ | 47.94 |
FINANCIAL_INSTRUMENTS_AND_FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | ' | |||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | ' | |||||||||||||
NOTE 8 FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | ||||||||||||||
The estimated fair value of our available-for-sale securities is primarily based on market quotes. The following is a summary of available-for-sale securities, which excludes investments in limited partnerships carried at cost and assets held in a Non-qualified Supplemental Savings Plan: | ||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
Gains | Losses | Value | ||||||||||||
(in thousands) | ||||||||||||||
Equity Securities: | ||||||||||||||
September 30, 2013 | $ | 68,434 | $ | 237,214 | $ | — | $ | 305,648 | ||||||
September 30, 2012 | $ | 129,183 | $ | 304,396 | $ | — | $ | 433,579 | ||||||
On an on-going basis, we evaluate the marketable equity securities to determine if a decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis established. We review several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the length of time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near term prospects of the issuer and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. | ||||||||||||||
During the year ended September 30, 2013, marketable equity available-for-sale securities with a fair value at the date of sale of $214.1 million were sold. The gross realized gain on such sales of available-for-sale securities totaled $153.4 million. We had no sales of marketable equity available-for-sale securities in fiscal years 2012 and 2011. | ||||||||||||||
During fiscal 2013, we sold our shares in three limited partnerships that were primarily invested in international equities and carried at a cost of $9.4 million, realizing a gain of $8.8 million that is included in gain from sale of investment securities in the Consolidated Statements of Income. During fiscal 2011, we sold our investment in a limited partnership that was carried at a cost of approximately $3.0 million and had a fair value of approximately $3.9 million at the date of the sale. A gross realized gain of approximately $0.9 million is included in the Consolidated Statements of Income. The investments in the limited partnerships carried at cost were approximately $9.4 million at September 30, 2012. The estimated fair value of the limited partnerships was $18.0 million at September 30, 2012. We no longer have any investments in limited partnerships. | ||||||||||||||
The assets held in a Non-qualified Supplemental Savings Plan are carried at fair market value which totaled $10.5 million and $8.2 million at September 30, 2013 and 2012, respectively. | ||||||||||||||
The majority of cash equivalents are invested in highly-liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government. The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those investments. | ||||||||||||||
The carrying value of other assets, accrued liabilities and other liabilities approximated fair value at September 30, 2013 and 2012. | ||||||||||||||
ASC 820 defines fair value as "the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date." ASC 820 establishes a fair value hierarchy to prioritize the inputs used in valuation techniques into three levels as follows: | ||||||||||||||
• | ||||||||||||||
Level 1—Observable inputs that reflect quoted prices in active markets for identical assets or liabilities in active markets. | ||||||||||||||
• | ||||||||||||||
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||
• | ||||||||||||||
Level 3—Valuations based on inputs that are unobservable and not corroborated by market data. | ||||||||||||||
At September 30, 2013, our financial assets utilizing Level 1 inputs include cash equivalents, equity securities with active markets and money market funds we have elected to classify as restricted assets that are included in other current assets and other assets. Also included is cash denominated in a foreign currency we have elected to classify as restricted that is included in current assets of discontinued operations and limited to remaining liabilities of discontinued operations. For these items, quoted current market prices are readily available. | ||||||||||||||
At September 30, 2013, Level 2 inputs include a bank certificate of deposit, which is included in current assets. | ||||||||||||||
Currently, we do not have any financial instruments utilizing Level 3 inputs. | ||||||||||||||
The following table summarizes our assets measured at fair value on a recurring basis presented in our Consolidated Balance Sheets as of September 30, 2013: | ||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||
Measured at | in Active | Other | Unobservable | |||||||||||
Fair Value | Markets for | Observable | Inputs | |||||||||||
Identical | Inputs | (Level 3) | ||||||||||||
Assets | (Level 2) | |||||||||||||
(Level 1) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 447,868 | $ | 447,868 | $ | — | $ | — | ||||||
Investments | 305,648 | 305,648 | — | — | ||||||||||
Other current assets | 27,396 | 27,146 | 250 | — | ||||||||||
Other assets | 2,000 | 2,000 | — | — | ||||||||||
Total assets measured at fair value | $ | 782,912 | $ | 782,662 | $ | 250 | $ | — | ||||||
The following information presents the supplemental fair value information about long-term fixed-rate debt at September 30, 2013 and September 30, 2012. | ||||||||||||||
September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||
Carrying value of long-term fixed-rate debt | $ | 195 | $ | 235 | ||||||||||
Fair value of long-term fixed-rate debt | $ | 205.4 | $ | 252.7 | ||||||||||
The fair value for fixed-rate debt was estimated using discounted cash flows at rates reflecting current interest rates at similar maturities plus credit spread which was estimated using the outstanding market information on debt instruments with a similar credit profile to us. The debt was valued using a Level 2 input. | ||||||||||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||
NOTE 9 EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||
We maintain a domestic noncontributory defined benefit pension plan covering certain U.S. employees who meet certain age and service requirements. In July 2003, we revised the Helmerich & Payne, Inc. Employee Retirement Plan ("Pension Plan") to close the Pension Plan to new participants effective October 1, 2003, and reduce benefit accruals for current participants through September 30, 2006, at which time benefit accruals were discontinued and the Pension Plan was frozen. | |||||||||||||||||||||||
The following table provides a reconciliation of the changes in the pension benefit obligations and fair value of Pension Plan assets over the two-year period ended September 30, 2013 and a statement of the funded status as of September 30, 2013 and 2012: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 102,680 | $ | 112,062 | |||||||||||||||||||
Changes in projected benefit obligations | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 112,062 | $ | 104,911 | |||||||||||||||||||
Interest cost | 4,339 | 4,498 | |||||||||||||||||||||
Actuarial (gain) loss | (9,320 | ) | 5,990 | ||||||||||||||||||||
Benefits paid | (4,401 | ) | (3,337 | ) | |||||||||||||||||||
Projected benefit obligation at end of year | $ | 102,680 | $ | 112,062 | |||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 86,718 | $ | 67,284 | |||||||||||||||||||
Actual return on plan assets | 12,369 | 14,495 | |||||||||||||||||||||
Employer contribution | 2,132 | 8,276 | |||||||||||||||||||||
Benefits paid | (4,401 | ) | (3,337 | ) | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 96,818 | $ | 86,718 | |||||||||||||||||||
Funded status of the plan at end of year | $ | (5,862 | ) | $ | (25,344 | ) | |||||||||||||||||
The amounts recognized in the Consolidated Balance Sheets are as follows (in thousands): | |||||||||||||||||||||||
Accrued liabilities | $ | (145 | ) | $ | (95 | ) | |||||||||||||||||
Noncurrent liabilities-other | (5,717 | ) | (25,249 | ) | |||||||||||||||||||
Net amount recognized | $ | (5,862 | ) | $ | (25,344 | ) | |||||||||||||||||
The amounts recognized in Accumulated Other Comprehensive Income at September 30, 2013 and 2012, and not yet reflected in net periodic benefit cost, are as follows (in thousands): | |||||||||||||||||||||||
Net actuarial loss | $ | (19,210 | ) | $ | (37,172 | ) | |||||||||||||||||
Prior service cost | — | (1 | ) | ||||||||||||||||||||
Total | $ | (19,210 | ) | $ | (37,173 | ) | |||||||||||||||||
The amount recognized in Accumulated Other Comprehensive Income and not yet reflected in periodic benefit cost expected to be amortized in next year's periodic benefit cost is a net actuarial loss of $0.9 million. | |||||||||||||||||||||||
The weighted average assumptions used for the pension calculations were as follows: | |||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Discount rate for net periodic benefit costs | 4.06 | % | 4.33 | % | 4.48 | % | |||||||||||||||||
Discount rate for year-end obligations | 4.8 | % | 4.06 | % | 4.33 | % | |||||||||||||||||
Expected return on plan assets | 7.06 | % | 7.16 | % | 8 | % | |||||||||||||||||
We contributed $2.1 million to the Pension Plan in fiscal 2013 to fund distributions in lieu of liquidating pension assets. We estimate contributing at least $0.1 million in fiscal 2014 to meet the minimum contribution required by law and may make additional contributions in fiscal 2014 if needed to fund unexpected distributions. | |||||||||||||||||||||||
Components of the net periodic pension expense (benefit) were as follows: | |||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Interest cost | $ | 4,339 | $ | 4,498 | $ | 4,519 | |||||||||||||||||
Expected return on plan assets | (6,099 | ) | (5,463 | ) | (5,050 | ) | |||||||||||||||||
Amortization of prior service cost | 1 | 2 | — | ||||||||||||||||||||
Recognized net actuarial loss | 2,372 | 3,567 | 2,976 | ||||||||||||||||||||
Settlement/curtailment | — | — | 28 | ||||||||||||||||||||
Net pension expense (benefit) | $ | 613 | $ | 2,604 | $ | 2,473 | |||||||||||||||||
The following table reflects the expected benefits to be paid from the Pension Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands). | |||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 - 2023 | Total | |||||||||||||||||
$ | 5,314 | $ | 5,903 | $ | 6,494 | $ | 5,979 | $ | 7,612 | $ | 36,529 | $ | 67,831 | ||||||||||
Included in the Pension Plan is an unfunded supplemental executive retirement plan. | |||||||||||||||||||||||
INVESTMENT STRATEGY AND ASSET ALLOCATION | |||||||||||||||||||||||
Our investment policy and strategies are established with a long-term view in mind. The investment strategy is intended to help pay the cost of the Plan while providing adequate security to meet the benefits promised under the Plan. We maintain a diversified asset mix to minimize the risk of a material loss to the portfolio value that might occur from devaluation of any single investment. In determining the appropriate asset mix, our financial strength and ability to fund potential shortfalls are considered. Plan assets are invested in portfolios of diversified public-market equity securities and fixed income securities. The Plan does not directly hold securities of the Company. | |||||||||||||||||||||||
The expected long-term rate of return on Plan assets is based on historical and projected rates of return for current and planned asset classes in the Plan's investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes. | |||||||||||||||||||||||
The target allocation for 2014 and the asset allocation for the Pension Plan at the end of fiscal 2013 and 2012, by asset category, follows: | |||||||||||||||||||||||
Target | Percentage | ||||||||||||||||||||||
Allocation | of Plan | ||||||||||||||||||||||
Assets At | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
Asset Category | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. equities | 55 | % | 58 | % | 55 | % | |||||||||||||||||
International equities | 15 | 13 | 12 | ||||||||||||||||||||
Fixed income | 27 | 27 | 25 | ||||||||||||||||||||
Real estate and other | 3 | 2 | 8 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||
PLAN ASSETS | |||||||||||||||||||||||
The fair value of Plan assets at September 30, 2013 and 2012, summarized by level within the fair value hierarchy described in Note 8, are as follows: | |||||||||||||||||||||||
Fair Value as of September 30, 2013 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Short-term investments | $ | 1,983 | $ | 1,983 | $ | — | $ | — | |||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Domestic stock funds | 44,129 | 44,129 | — | — | |||||||||||||||||||
Bond funds | 23,749 | 23,749 | — | — | |||||||||||||||||||
International stock funds | 12,519 | 12,519 | — | — | |||||||||||||||||||
Total mutual funds | 80,397 | 80,397 | — | — | |||||||||||||||||||
Domestic common stock | 12,998 | 12,998 | — | — | |||||||||||||||||||
Foreign equity stock | 1,153 | 1,153 | — | — | |||||||||||||||||||
Oil and gas properties | 287 | — | — | 287 | |||||||||||||||||||
Total | $ | 96,818 | $ | 96,531 | $ | — | $ | 287 | |||||||||||||||
Fair Value as of September 30, 2012 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Short-term investments | $ | 7,233 | $ | 7,233 | $ | — | $ | — | |||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Domestic stock funds | 36,209 | 36,209 | — | — | |||||||||||||||||||
Bond funds | 21,458 | 21,458 | — | — | |||||||||||||||||||
International stock funds | 10,069 | 10,069 | — | — | |||||||||||||||||||
Total mutual funds | 67,736 | 67,736 | — | — | |||||||||||||||||||
Domestic common stock | 10,543 | 10,543 | — | — | |||||||||||||||||||
Foreign equity stock | 907 | 907 | — | — | |||||||||||||||||||
Oil and gas properties | 299 | — | — | 299 | |||||||||||||||||||
Total | $ | 86,718 | $ | 86,419 | $ | — | $ | 299 | |||||||||||||||
The Plan's financial assets utilizing Level 1 inputs are valued based on quoted prices in active markets for identical securities. The Plan has no assets utilizing Level 2. The Plan's assets utilizing Level 3 inputs consist of oil and gas properties. The fair value of oil and gas properties is determined by Wells Fargo Bank, N.A., based upon actual revenue received for the previous twelve-month period and experience with similar assets. | |||||||||||||||||||||||
The following table sets forth a summary of changes in the fair value of the Plan's Level 3 assets for the years ended September 30, 2013 and 2012: | |||||||||||||||||||||||
Oil and Gas | |||||||||||||||||||||||
Properties | |||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance, beginning of year | $ | 299 | $ | 275 | |||||||||||||||||||
Unrealized gains (losses) relating to property still held at the reporting date | (12 | ) | 24 | ||||||||||||||||||||
Balance, end of year | $ | 287 | $ | 299 | |||||||||||||||||||
DEFINED CONTRIBUTION PLAN | |||||||||||||||||||||||
Substantially all employees on the United States payroll may elect to participate in the 401(k)/Thrift Plan by contributing a portion of their earnings. We contribute an amount equal to 100 percent of the first five percent of the participant's compensation subject to certain limitations. The annual expense incurred for this defined contribution plan was $28.3 million, $26.7 million and $21.0 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | ||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | ||||||||||
NOTE 10 SUPPLEMENTAL BALANCE SHEET INFORMATION | |||||||||||
The following reflects the activity in our reserve for bad debt for 2013, 2012 and 2011: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Reserve for bad debt: | |||||||||||
Balance at October 1, | $ | 942 | $ | 776 | $ | 830 | |||||
Provision for bad debt | 3,875 | 205 | 106 | ||||||||
Write-off of bad debt | (22 | ) | (39 | ) | (160 | ) | |||||
Balance at September 30, | $ | 4,795 | $ | 942 | $ | 776 | |||||
Prepaid expenses and other current assets, accrued liabilities and long-term liabilities at September 30 consist of the following: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other current assets: | |||||||||||
Restricted cash | $ | 23,691 | $ | 28,989 | |||||||
Prepaid insurance | 14,250 | 15,522 | |||||||||
Deferred mobilization | 11,395 | 19,809 | |||||||||
Income tax asset | 9,322 | — | |||||||||
Prepaid value added tax | 5,004 | 1,470 | |||||||||
Other | 16,276 | 8,903 | |||||||||
Total prepaid expenses and other current assets | $ | 79,938 | $ | 74,693 | |||||||
Accrued liabilities: | |||||||||||
Accrued operating costs | $ | 30,169 | $ | 37,645 | |||||||
Payroll and employee benefits | 71,658 | 52,187 | |||||||||
Taxes payable, other than income tax | 38,328 | 35,842 | |||||||||
Accrued income taxes | — | 1,325 | |||||||||
Deferred mobilization | 12,235 | 13,351 | |||||||||
Self-insurance liabilities | 7,028 | 5,611 | |||||||||
Deferred income | 11,663 | 11,280 | |||||||||
Other | 18,603 | 19,374 | |||||||||
Total accrued liabilities | $ | 189,684 | $ | 176,615 | |||||||
Noncurrent liabilities—Other: | |||||||||||
Pension and other non-qualified retirement plans | $ | 23,404 | $ | 40,142 | |||||||
Self-insurance liabilities | 12,207 | 12,385 | |||||||||
Deferred mobilization | 8,067 | 19,364 | |||||||||
Deferred income | 1,781 | 6,766 | |||||||||
Uncertain tax positions including interest and penalties | 12,844 | 12,184 | |||||||||
Other | 7,048 | 7,552 | |||||||||
Total noncurrent liabilities—other | $ | 65,351 | $ | 98,393 | |||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
NOTE 11 SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash payments: | |||||||||||
Interest paid, net of amounts capitalized | $ | 6,991 | $ | 10,711 | $ | 16,107 | |||||
Income taxes paid | $ | 363,326 | $ | 144,959 | $ | 19,621 | |||||
Capital expenditures on the Consolidated Statements of Cash Flows for the years ended September 30, 2013, 2012 and 2011 do not include additions which have been incurred but not paid for as of the end of the year. The following table reconciles total capital expenditures incurred to total capital expenditures in the Consolidated Statements of Cash Flows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Capital expenditures incurred | $ | 791,741 | $ | 1,082,678 | $ | 730,347 | |||||
Additions incurred prior year but paid for in current year | 46,589 | 61,591 | 25,508 | ||||||||
Additions incurred but not paid for as of the end of the year | (29,264 | ) | (46,589 | ) | (61,591 | ) | |||||
Capital expenditures per Consolidated Statements of Cash Flows | $ | 809,066 | $ | 1,097,680 | $ | 694,264 | |||||
RISK_FACTORS
RISK FACTORS | 12 Months Ended |
Sep. 30, 2013 | |
RISK FACTORS | ' |
RISK FACTORS | ' |
NOTE 12 RISK FACTORS | |
CONCENTRATION OF CREDIT | |
Financial instruments which potentially subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term investments and trade receivables. We place temporary cash investments in the U.S. with established financial institutions and invest in a diversified portfolio of highly rated, short-term money market instruments. Our trade receivables, primarily with established companies in the oil and gas industry, may impact credit risk as customers may be similarly affected by prolonged changes in economic and industry conditions. International sales also present various risks including governmental activities that may limit or disrupt markets and restrict the movement of funds. Most of our international sales, however, are to large international or government-owned national oil companies. We perform ongoing credit evaluations of customers and do not typically require collateral in support for trade receivables. We provide an allowance for doubtful accounts, when necessary, to cover estimated credit losses. Such an allowance is based on management's knowledge of customer accounts. Except as disclosed in Note 2, Discontinued Operations, no significant credit losses have been experienced in recent history. | |
VOLATILITY OF MARKET | |
Our operations can be materially affected by oil and gas prices. Oil and natural gas prices have been historically volatile and difficult to predict. While current energy prices are important contributors to positive cash flow for customers, expectations about future prices and price volatility are generally more important for determining a customer's future spending levels. This volatility, along with the difficulty in predicting future prices, can lead many exploration and production companies to base their capital spending on much more conservative estimates of commodity prices. As a result, demand for contract drilling services is not always purely a function of the movement of commodity prices. | |
In addition, customers may finance their exploration activities through cash flow from operations, the incurrence of debt or the issuance of equity. Any deterioration in the credit and capital markets may cause difficulty for customers to obtain funding for their capital needs. A reduction of cash flow resulting from declines in commodity prices or a reduction of available financing may result in a reduction in customer spending and the demand for drilling services. This reduction in spending could have a material adverse effect on our operations. | |
SELF-INSURANCE | |
We self-insure a significant portion of expected losses relating to worker's compensation, general liability and automobile liability. Generally, deductibles range from $1 million to $3 million per occurrence depending on the coverage and whether a claim occurs outside or inside of the United States. Insurance is purchased over deductibles to reduce our exposure to catastrophic events. Estimates are recorded for incurred outstanding liabilities for worker's compensation, general liability claims and claims that are incurred but not reported. Estimates are based on adjusters' estimates, historic experience and statistical methods that we believe are reliable. Nonetheless, insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs. | |
We have a wholly-owned captive insurance company which finances a significant portion of the physical damage risk on company-owned drilling rigs as well as international casualty deductibles. | |
INTERNATIONAL DRILLING OPERATIONS | |
International drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our international operations will be subject to numerous contingencies, some of which are beyond management's control. These contingencies include general and regional economic conditions, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. | |
We are not operating in any country that is currently considered highly inflationary, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period. All of our foreign subsidiaries use the U.S. dollar as the functional currency and local currency monetary assets are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. As such, if a foreign economy is considered highly inflationary, there would be no impact on the Consolidated Financial Statements. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 13 COMMITMENTS AND CONTINGENCIES | |||||
PURCHASE OBLIGATIONS | |||||
During fiscal 2013, we announced agreements to build and operate five new FlexRigs in the U.S. and one 3,000 horsepower AC drive rig in an international location. Subsequent to September 30, 2013, we announced agreements to build and operate 13 new FlexRigs in the U.S. As of November 14, 2013, nine new FlexRigs and one new AC drive rig with customer commitments remained under construction. During construction, rig construction cost is included in construction in progress and then transferred to contract drilling equipment when the rig is placed in the field for service. Equipment, parts and supplies are ordered in advance to promote efficient construction progress. At September 30, 2013, we had purchase orders outstanding of approximately $79.6 million for the purchase of drilling equipment. | |||||
LEASES | |||||
At September 30, 2013, we were leasing approximately 176,000 square feet of office space near downtown Tulsa, Oklahoma. We also lease other office space and equipment for use in operations. For operating leases that contain built-in pre-determined rent escalations, rent expense is recognized on a straight-line basis over the life of the lease. Leasehold improvements are capitalized and amortized over the lease term. Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of a year at September 30, 2013 are as follows: | |||||
Fiscal Year | Amount | ||||
(in thousands) | |||||
2014 | $ | 5,443 | |||
2015 | 3,536 | ||||
2016 | 2,807 | ||||
2017 | 2,720 | ||||
2018 | 2,726 | ||||
Thereafter | 15,456 | ||||
Total | $ | 32,688 | |||
Total rent expense was $9.9 million, $8.5 million and $5.8 million for fiscal 2013, 2012 and 2011, respectively. | |||||
CONTINGENCIES | |||||
Various legal actions, the majority of which arise in the ordinary course of business, are pending. We maintain insurance against certain business risks subject to certain deductibles. None of these legal actions are expected to have a material adverse effect on our financial condition, cash flows or results of operations. | |||||
We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. | |||||
During the ordinary course of our business, contingencies arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. As discussed in Note 2, Discontinued Operations, property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A., filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. ("PDVSA") and PDVSA Petroleo, S.A. ("Petroleo"). Our subsidiaries seek damages for the taking of their Venezuelan drilling business in violation of international law and for breach of contract. While there exists the possibility of realizing a recovery, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. No gain contingencies are recognized in our Consolidated Financial Statements. | |||||
In the third quarter of fiscal 2013 and in the fourth fiscal quarter of 2012, we settled arbitration disputes with third parties not affiliated with the Venezuelan government, PDVSA or Petroleo related to the seizure of our property in Venezuela. Proceeds of $15.0 million and $7.5 million were received and recorded in discontinued operations in fiscal 2013 and 2012, respectively. | |||||
On November 8, 2013, the United States District Court for the Eastern District of Louisiana approved the previously disclosed October 30, 2013 plea agreement between our wholly owned subsidiary, Helmerich & Payne International Drilling Co., and the United States Department of Justice, United States Attorney's Office for the Eastern District of Louisiana ("DOJ"). The court's approval of the plea agreement resolved the DOJ's investigation into certain choke manifold testing irregularities that occurred in 2010 at one of Helmerich & Payne International Drilling Co.'s offshore platform rigs in the Gulf of Mexico. In November 2013, we paid a $5.4 million monetary penalty and made a $1.0 million organizational community service payment which are included in accrued liabilities on the September 30, 2013 Consolidated Balance Sheets and in operating costs, excluding depreciation in the September 30, 2013 Consolidated Statements of Income. | |||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
NOTE 14 SEGMENT INFORMATION | |||||||||||||||||||||||
We operate principally in the contract drilling industry. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. To provide information about the different types of business activities in which we operate, we have included Offshore and International Land, along with our U.S. Land reportable operating segment, as separate reportable operating segments. Additionally, each reportable operating segment is a strategic business unit which is managed separately. Our primary international areas of operation include Colombia, Ecuador, Argentina, Tunisia, Bahrain, U.A.E. and other South American countries. Other includes additional non-reportable operating segments. Revenues included in Other consist primarily of rental income. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions. | |||||||||||||||||||||||
We evaluate segment performance based on income or loss from operations (segment operating income) before income taxes which includes: | |||||||||||||||||||||||
• | |||||||||||||||||||||||
revenues from external and internal customers | |||||||||||||||||||||||
• | |||||||||||||||||||||||
direct operating costs | |||||||||||||||||||||||
• | |||||||||||||||||||||||
depreciation and | |||||||||||||||||||||||
• | |||||||||||||||||||||||
allocated general and administrative costs | |||||||||||||||||||||||
but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense. | |||||||||||||||||||||||
General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided. | |||||||||||||||||||||||
Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance for presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods. | |||||||||||||||||||||||
Summarized financial information of our reportable segments for continuing operations for each of the years ended September 30, 2013, 2012 and 2011 is shown in the following table: | |||||||||||||||||||||||
(in thousands) | External | Inter- | Total | Segment | Depreciation | Total | Additions | ||||||||||||||||
Sales | Segment | Sales | Operating | Assets | to Long-Lived | ||||||||||||||||||
Income (Loss) | Assets | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,785,449 | $ | — | $ | 2,785,449 | $ | 932,591 | $ | 391,072 | $ | 4,743,644 | $ | 726,206 | |||||||||
Offshore | 221,863 | — | 221,863 | 53,064 | 13,766 | 149,128 | 4,470 | ||||||||||||||||
International Land | 366,841 | — | 366,841 | 44,595 | 36,000 | 486,914 | 51,193 | ||||||||||||||||
3,374,153 | — | 3,374,153 | 1,030,250 | 440,838 | 5,379,686 | 781,869 | |||||||||||||||||
Other | 13,461 | 858 | 14,319 | (8,602 | ) | 14,785 | 881,436 | 9,872 | |||||||||||||||
3,387,614 | 858 | 3,388,472 | 1,021,648 | 455,623 | 6,261,122 | 791,741 | |||||||||||||||||
Eliminations | — | (858 | ) | (858 | ) | — | — | — | — | ||||||||||||||
Total | $ | 3,387,614 | $ | — | $ | 3,387,614 | $ | 1,021,648 | $ | 455,623 | $ | 6,261,122 | $ | 791,741 | |||||||||
2012 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,678,475 | $ | — | $ | 2,678,475 | $ | 906,968 | $ | 332,723 | $ | 4,422,297 | $ | 991,966 | |||||||||
Offshore | 189,086 | — | 189,086 | 41,775 | 13,455 | 160,135 | 8,547 | ||||||||||||||||
International Land | 270,027 | — | 270,027 | 20,366 | 30,701 | 467,538 | 52,864 | ||||||||||||||||
3,137,588 | — | 3,137,588 | 969,109 | 376,879 | 5,049,970 | 1,053,377 | |||||||||||||||||
Other | 14,214 | 841 | 15,055 | (8,824 | ) | 10,670 | 663,496 | 29,301 | |||||||||||||||
3,151,802 | 841 | 3,152,643 | 960,285 | 387,549 | 5,713,466 | 1,082,678 | |||||||||||||||||
Eliminations | — | (841 | ) | (841 | ) | — | — | — | — | ||||||||||||||
Total | $ | 3,151,802 | $ | — | $ | 3,151,802 | $ | 960,285 | $ | 387,549 | $ | 5,713,466 | $ | 1,082,678 | |||||||||
2011 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,100,508 | $ | — | $ | 2,100,508 | $ | 691,615 | $ | 264,127 | $ | 3,719,387 | $ | 694,249 | |||||||||
Offshore | 201,417 | — | 201,417 | 45,291 | 14,684 | 151,656 | 7,092 | ||||||||||||||||
International Land | 226,849 | — | 226,849 | 19,711 | 28,018 | 333,142 | 20,638 | ||||||||||||||||
2,528,774 | — | 2,528,774 | 756,617 | 306,829 | 4,204,185 | 721,979 | |||||||||||||||||
Other | 15,120 | 829 | 15,949 | (7,682 | ) | 8,639 | 792,177 | 8,368 | |||||||||||||||
2,543,894 | 829 | 2,544,723 | 748,935 | 315,468 | 4,996,362 | 730,347 | |||||||||||||||||
Eliminations | — | (829 | ) | (829 | ) | — | — | — | — | ||||||||||||||
Total | $ | 2,543,894 | $ | — | $ | 2,543,894 | $ | 748,935 | $ | 315,468 | $ | 4,996,362 | $ | 730,347 | |||||||||
The following table reconciles segment operating income to income from continuing operations before income taxes as reported on the Consolidated Statements of Income: | |||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Segment operating income | $ | 1,021,648 | $ | 960,285 | $ | 748,935 | |||||||||||||||||
Income from asset sales | 18,923 | 19,223 | 13,903 | ||||||||||||||||||||
Corporate general and administrative costs and corporate depreciation | (83,910 | ) | (69,909 | ) | (60,327 | ) | |||||||||||||||||
Operating income | 956,661 | 909,599 | 702,511 | ||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest and dividend income | 1,653 | 1,380 | 1,951 | ||||||||||||||||||||
Interest expense | (6,129 | ) | (8,653 | ) | (17,355 | ) | |||||||||||||||||
Gain on sale of investment securities | 162,121 | — | 913 | ||||||||||||||||||||
Other | (9 | ) | 254 | (953 | ) | ||||||||||||||||||
Total unallocated amounts | 157,636 | (7,019 | ) | (15,444 | ) | ||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,114,297 | $ | 902,580 | $ | 687,067 | |||||||||||||||||
The following table presents revenues from external customers and long-lived assets by country based on the location of service provided: | |||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
United States | $ | 3,011,760 | $ | 2,864,570 | $ | 2,276,118 | |||||||||||||||||
Colombia | 100,052 | 82,247 | 74,504 | ||||||||||||||||||||
Argentina | 73,208 | 54,317 | 44,205 | ||||||||||||||||||||
Ecuador | 67,890 | 56,448 | 42,598 | ||||||||||||||||||||
Other Foreign | 134,704 | 94,220 | 106,469 | ||||||||||||||||||||
Total | $ | 3,387,614 | $ | 3,151,802 | $ | 2,543,894 | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||||
United States | $ | 4,345,950 | $ | 4,039,770 | $ | 3,423,185 | |||||||||||||||||
Argentina | 83,149 | 81,886 | 78,221 | ||||||||||||||||||||
Colombia | 81,315 | 84,389 | 67,369 | ||||||||||||||||||||
Ecuador | 63,894 | 38,265 | 28,439 | ||||||||||||||||||||
Other Foreign | 101,795 | 107,261 | 79,856 | ||||||||||||||||||||
Total | $ | 4,676,103 | $ | 4,351,571 | $ | 3,677,070 | |||||||||||||||||
Long-lived assets are comprised of property, plant and equipment. | |||||||||||||||||||||||
Revenues from one customer accounted for approximately 10.8 percent, 5.7 percent and 2.6 percent of total operating revenues during the years ended September 30, 2013, 2012 and 2011, respectively. Revenues from another customer accounted for approximately 10.5 percent, 9.6 percent and 11.5 percent of total operating revenues during the years ended September 30, 2013, 2012 and 2011, respectively. Collectively, the receivables from these customers were approximately $101.6 million and $109.9 million at September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
NOTE 15 SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||
2013 | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||
Operating revenues | $ | 844,572 | $ | 838,309 | $ | 840,197 | $ | 864,536 | ||||||
Operating income | 240,547 | 232,920 | 239,960 | 243,234 | ||||||||||
Income from continuing operations | 159,611 | 151,067 | 250,978 | 159,797 | ||||||||||
Net income | 159,603 | 151,080 | 266,159 | 159,797 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Income from continuing operations | 1.5 | 1.41 | 2.35 | 1.49 | ||||||||||
Net income | 1.5 | 1.41 | 2.49 | 1.49 | ||||||||||
Diluted earnings per common share: | ||||||||||||||
Income from continuing operations | 1.48 | 1.39 | 2.32 | 1.47 | ||||||||||
Net income | 1.48 | 1.39 | 2.46 | 1.47 | ||||||||||
2012 | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||
Operating revenues | $ | 732,588 | $ | 769,982 | $ | 819,785 | $ | 829,447 | ||||||
Operating income | 230,539 | 207,025 | 232,655 | 239,380 | ||||||||||
Income from continuing operations | 144,297 | 129,763 | 149,943 | 149,606 | ||||||||||
Net income | 144,286 | 129,719 | 149,925 | 157,115 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Income from continuing operations | 1.34 | 1.2 | 1.4 | 1.41 | ||||||||||
Net income | 1.34 | 1.2 | 1.4 | 1.48 | ||||||||||
Diluted earnings per common share: | ||||||||||||||
Income from continuing operations | 1.32 | 1.18 | 1.38 | 1.39 | ||||||||||
Net income | 1.32 | 1.18 | 1.38 | 1.46 | ||||||||||
The sum of earnings per share for the four quarters may not equal the total earnings per share for the year due to changes in the average number of common shares outstanding. | ||||||||||||||
In the first quarter of fiscal 2013, net income includes an after-tax gain from the sale of assets of $3.4 million, $0.03 per share on a diluted basis, and an after-tax gain from the sale of investment securities of $5.5 million, $0.05 per share on a diluted basis. | ||||||||||||||
In the second quarter of fiscal 2013, net income includes an after-tax gain from the sale of assets of $3.4 million, $0.03 per share on a diluted basis. | ||||||||||||||
In the third quarter of fiscal 2013, net income includes an after-tax gain from the sale of assets of $2.6 million, $0.02 per share on a diluted basis, and an after-tax gain from the sale of investment securities of $92.4 million, $0.86 per share on a diluted basis. | ||||||||||||||
In the fourth quarter of fiscal 2013, net income includes an after-tax gain from the sale of assets of $2.8 million, $0.03 per share on a diluted basis. | ||||||||||||||
In the first quarter of fiscal 2012, net income includes an after-tax gain from the sale of assets of $3.0 million, $0.03 per share on a diluted basis. | ||||||||||||||
In the second quarter of fiscal 2012, net income includes an after-tax gain from the sale of assets of $4.9 million, $0.05 per share on a diluted basis. | ||||||||||||||
In the third quarter of fiscal 2012, net income includes an after-tax gain from the sale of assets of $1.3 million, $0.01 per share on a diluted basis. | ||||||||||||||
In the fourth quarter of fiscal 2012, net income includes an after-tax gain from the sale of assets of $3.0 million, $0.03 per share on a diluted basis. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
PRINCIPLES OF CONSOLIDATION | ' | ||||||||||
PRINCIPLES OF CONSOLIDATION | |||||||||||
The consolidated financial statements include the accounts of Helmerich & Payne, Inc. and its wholly-owned subsidiaries. Fiscal years of our foreign operations end on August 31 to facilitate reporting of consolidated results. There were no significant intervening events that materially affected the financial statements. | |||||||||||
BASIS OF PRESENTATION | ' | ||||||||||
BASIS OF PRESENTATION | |||||||||||
We classified our former Venezuelan operation, an operating segment within the International Land segment, as a discontinued operation in the third quarter of fiscal 2010, as more fully described in Note 2. Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates only to our continuing operations. | |||||||||||
FOREIGN CURRENCIES | ' | ||||||||||
FOREIGN CURRENCIES | |||||||||||
The functional currency for all our foreign operations is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the year. Gains and losses from remeasurement of foreign currency financial statements and foreign currency translations into U.S. dollars are included in direct operating costs. Included in direct operating costs are aggregate foreign currency remeasurement and transaction gains of $0.7 million and $0.3 million in fiscal 2013 and 2012, respectively, and losses totalling $1.2 million in fiscal 2011. | |||||||||||
USE OF ESTIMATES | ' | ||||||||||
USE OF ESTIMATES | |||||||||||
The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
RECENTLY ADOPTED ACCOUNTING STANDARDS | ' | ||||||||||
RECENTLY ADOPTED ACCOUNTING STANDARDS | |||||||||||
On October 1, 2012, we adopted Accounting Standards Update ("ASU") No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU No. 2011-04 is intended to create consistency between U.S. GAAP and International Financial Reporting Standards ("IFRS") on the definition of fair value and on the guidance on how to measure fair value and on what to disclose about fair value measurements. The adoption of these provisions had no material impact on the Consolidated Financial Statements. | |||||||||||
On October 1, 2012, we adopted ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. ASU No. 2011-05 was issued to increase the prominence of other comprehensive income ("OCI") in financial statements. Our presentation of OCI is shown in a separate statement and was applied retrospectively. The adoption had no impact on the amount of OCI reported in the Consolidated Financial Statements. | |||||||||||
CASH AND CASH EQUIVALENTS | ' | ||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts, and several "zero-balance" disbursement accounts for funding payroll and accounts payable. As a result of our cash management system, checks issued, but not presented to the banks for payment, may create negative book cash balances. | |||||||||||
RESTRICTED CASH AND CASH EQUIVALENTS | ' | ||||||||||
RESTRICTED CASH AND CASH EQUIVALENTS | |||||||||||
We had restricted cash and cash equivalents of $25.7 million and $31.0 million at September 30, 2013 and 2012, respectively. The cash is restricted for the purpose of potential insurance claims in our wholly-owned captive insurance company. Of the total at September 30, 2013, $2.0 million is from the initial capitalization of the captive company and management has elected to restrict an additional $23.7 million. The restricted amounts are primarily invested in short-term money market securities. | |||||||||||
The restricted cash and cash equivalents are reflected in the balance sheet as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other | $ | 23,691 | $ | 28,989 | |||||||
Other assets | $ | 2,000 | $ | 2,000 | |||||||
INVENTORIES AND SUPPLIES | ' | ||||||||||
INVENTORIES AND SUPPLIES | |||||||||||
Inventories and supplies are primarily replacement parts and supplies held for use in our drilling operations. Inventories and supplies are valued at the lower of cost (moving average or actual) or market value. | |||||||||||
INVESTMENTS | ' | ||||||||||
INVESTMENTS | |||||||||||
We maintain investments in equity securities of certain publicly traded companies. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. | |||||||||||
We regularly review investment securities for impairment based on criteria that include the extent to which the investment's carrying value exceeds its related fair value, the duration of the market decline and the financial strength and specific prospects of the issuer of the security. Unrealized losses that are other than temporary are recognized in earnings. | |||||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation. Substantially all property, plant and equipment are depreciated using the straight-line method based on the estimated useful lives of the assets (contract drilling equipment, 4-15 years; real estate buildings and equipment, 10-45 years; and other, 2-23 years). Depreciation in the Consolidated Statements of Income includes abandonments of $9.1 million, $16.4 million and $4.9 million for fiscal 2013, 2012 and 2011, respectively. The cost of maintenance and repairs is charged to direct operating cost, while betterments and refurbishments are capitalized. | |||||||||||
We lease office space and equipment for use in operations. Leases are evaluated at inception or at any subsequent material modification and, depending on the lease terms, are classified as either capital leases or operating leases as appropriate under Accounting Standards Codification ("ASC") 840, Leases. We do not have significant capital leases. | |||||||||||
CAPITALIZATION OF INTEREST | ' | ||||||||||
CAPITALIZATION OF INTEREST | |||||||||||
We capitalize interest on major projects during construction. Interest is capitalized based on the average interest rate on related debt. Capitalized interest for fiscal 2013, 2012 and 2011 was $8.8 million, $12.9 million and $8.2 million, respectively. | |||||||||||
VALUATION OF LONG-LIVED ASSETS | ' | ||||||||||
VALUATION OF LONG-LIVED ASSETS | |||||||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Changes that could prompt such an assessment include a significant decline in revenue or cash margin per day, extended periods of low rig utilization, changes in market demand for a specific asset, obsolescence, completion of specific contracts and/or overall general market conditions. If a review of the long-lived assets indicates that the carrying value of certain of these assets is more than the estimated undiscounted future cash flows, an impairment charge is made to adjust the carrying value down to the estimated fair value of the asset. The fair value of drilling rigs is determined based upon estimated discounted future cash flows or estimated fair market value, if available. Cash flows are estimated by management considering factors such as prospective market demand, recent changes in rig technology and its effect on each rig's marketability, any cash investment required to make a rig marketable, suitability of rig size and make up to existing platforms, and competitive dynamics including industry utilization. Fair value is estimated, if applicable, considering factors such as recent market sales of rigs of other companies and our own sales of rigs, appraisals and other factors. | |||||||||||
SELF INSURANCE ACCRUALS | ' | ||||||||||
SELF-INSURANCE ACCRUALS | |||||||||||
We have accrued a liability for estimated worker's compensation and other casualty claims incurred. The liability for other benefits to former or inactive employees after employment but before retirement is not material. | |||||||||||
DRILLING REVENUES | ' | ||||||||||
DRILLING REVENUES | |||||||||||
Contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Mobilization payments received, and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Reimbursements received for out-of-pocket expenses are recorded as both revenues and direct costs. Reimbursements for fiscal 2013, 2012 and 2011 were $332.5 million, $329.7 million and $251.0 million, respectively. For contracts that are terminated prior to the specified term, early termination payments received by us are recognized as revenues when all contractual requirements are met. | |||||||||||
RENT REVENUES | ' | ||||||||||
RENT REVENUES | |||||||||||
We enter into leases with tenants in our rental properties consisting primarily of retail and multi-tenant warehouse space. The lease terms of tenants occupying space in the retail centers and warehouse buildings generally range from three to ten years. Minimum rents are recognized on a straight-line basis over the term of the related leases. Overage and percentage rents are based on tenants' sales volume. Recoveries from tenants for property taxes and operating expenses are recognized in other operating revenues in the Consolidated Statements of Income. Our rent revenues are as follows: | |||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Minimum rents | $ | 9,009 | $ | 8,757 | $ | 8,941 | |||||
Overage and percentage rents | $ | 1,384 | $ | 1,485 | $ | 1,135 | |||||
At September 30, 2013, minimum future rental income to be received on noncancelable operating leases was as follows: | |||||||||||
Fiscal Year | Amount | ||||||||||
(in thousands) | |||||||||||
2014 | $ | 7,837 | |||||||||
2015 | 6,479 | ||||||||||
2016 | 4,892 | ||||||||||
2017 | 3,999 | ||||||||||
2018 | 2,650 | ||||||||||
Thereafter | 5,790 | ||||||||||
Total | $ | 31,647 | |||||||||
Leasehold improvement allowances are capitalized and amortized over the lease term. | |||||||||||
At September 30, 2013 and 2012, the cost and accumulated depreciation for real estate properties were as follows: | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Real estate properties | $ | 63,542 | $ | 62,177 | |||||||
Accumulated depreciation | (41,847 | ) | (40,882 | ) | |||||||
$ | 21,695 | $ | 21,295 | ||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | |||||||||||
Current income tax expense is the amount of income taxes expected to be payable for the current year. Deferred income taxes are computed using the liability method and are provided on all temporary differences between the financial basis and the tax basis of our assets and liabilities. | |||||||||||
We provide for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed in ASC 740, Income Taxes, which is more fully discussed in Note 4. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in other expense in the Consolidated Statements of Income. | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | |||||||||||
Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options and nonvested restricted stock. | |||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||
STOCK-BASED COMPENSATION | |||||||||||
We record compensation expense associated with stock options in accordance with ASC 718, Compensation—Stock Compensation. Compensation expense is determined using a fair-value-based measurement method for all awards granted. In computing the impact, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk free interest rate, volatility, dividend yield and expected remaining term of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Stock-based compensation is recognized on a straight-line basis over the requisite service periods of the stock awards, which is generally the vesting period. Compensation expense related to stock options is recorded as a component of general and administrative expenses in the Consolidated Statements of Income. | |||||||||||
TREASURY STOCK | ' | ||||||||||
TREASURY STOCK | |||||||||||
Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital using the average-cost method. | |||||||||||
NEW ACCOUNTING STANDARDS | ' | ||||||||||
NEW ACCOUNTING STANDARDS | |||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU 2013-2, Other Comprehensive Income. This ASU amends ASC 220, Comprehensive Income, and supersedes and replaces ASU 2011-05, Presentation of Comprehensive Income, and ASU 2011-12, Comprehensive Income, to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. The standard does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance does require an entity to provide enhanced disclosures to present separately by component reclassifications out of accumulated other comprehensive income. The amendments in this ASU are effective prospectively for reporting periods beginning after December 15, 2012. We do not believe adoption of this guidance will have a material impact on our Consolidated Financial Statements. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||
Schedule of the location of restricted cash and cash equivalents in the balance sheet | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other | $ | 23,691 | $ | 28,989 | |||||||
Other assets | $ | 2,000 | $ | 2,000 | |||||||
Schedule of rent revenues | ' | ||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Minimum rents | $ | 9,009 | $ | 8,757 | $ | 8,941 | |||||
Overage and percentage rents | $ | 1,384 | $ | 1,485 | $ | 1,135 | |||||
Schedule of future minimum rental income to be received on noncancelable operating leases | ' | ||||||||||
At September 30, 2013, minimum future rental income to be received on noncancelable operating leases was as follows: | |||||||||||
Fiscal Year | Amount | ||||||||||
(in thousands) | |||||||||||
2014 | $ | 7,837 | |||||||||
2015 | 6,479 | ||||||||||
2016 | 4,892 | ||||||||||
2017 | 3,999 | ||||||||||
2018 | 2,650 | ||||||||||
Thereafter | 5,790 | ||||||||||
Total | $ | 31,647 | |||||||||
Schedule of cost and accumulated depreciation for real estate properties | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Real estate properties | $ | 63,542 | $ | 62,177 | |||||||
Accumulated depreciation | (41,847 | ) | (40,882 | ) | |||||||
$ | 21,695 | $ | 21,295 | ||||||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
DISCONTINUED OPERATIONS | ' | ||||||||||
Summary of operating results from discontinued operations | ' | ||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Revenue | $ | — | $ | — | $ | — | |||||
Income (loss) before income taxes | 14,701 | 7,355 | (487 | ) | |||||||
Income tax benefit | (485 | ) | (81 | ) | (5 | ) | |||||
Income (loss) from discontinued operations | $ | 15,186 | $ | 7,436 | $ | (482 | ) | ||||
Significant categories of assets and liabilities from discontinued operations | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Other current assets | $ | 3,705 | $ | 7,619 | |||||||
Total assets | $ | 3,705 | $ | 7,619 | |||||||
Total current liabilities | $ | 3,210 | $ | 5,129 | |||||||
Total noncurrent liabilities | 495 | 2,490 | |||||||||
Total liabilities | $ | 3,705 | $ | 7,619 | |||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
DEBT | ' | |||||||
Components of unsecured long-term debt outstanding | ' | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Unsecured intermediate debt issued August 15, 2002: | ||||||||
Series D, due August 15, 2014, 6.56% | $ | 75,000 | $ | 75,000 | ||||
Unsecured senior notes issued July 21, 2009: | ||||||||
Due July 21, 2013, 6.10% | — | 40,000 | ||||||
Due July 21, 2014, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2015, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2016, 6.10% | 40,000 | 40,000 | ||||||
$ | 195,000 | $ | 235,000 | |||||
Less long-term debt due within one year | 115,000 | 40,000 | ||||||
Long-term debt | $ | 80,000 | $ | 195,000 | ||||
Schedule of aggregate maturities of long-term debt | ' | |||||||
At September 30, 2013, aggregate maturities of long-term debt are as follows (in thousands): | ||||||||
Years ending | ||||||||
September 30, | ||||||||
2014 | $ | 115,000 | ||||||
2015 | 40,000 | |||||||
2016 | 40,000 | |||||||
$ | 195,000 | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of components of the provision for income taxes | ' | ||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 315,820 | $ | 108,297 | $ | 42,377 | |||||
Foreign | 14,551 | 13,201 | 14,259 | ||||||||
State | 32,916 | 10,542 | 8,112 | ||||||||
363,287 | 132,040 | 64,748 | |||||||||
Deferred: | |||||||||||
Federal | 35,530 | 196,373 | 185,076 | ||||||||
Foreign | (1,409 | ) | (6,484 | ) | (4,117 | ) | |||||
State | (4,564 | ) | 7,042 | 6,692 | |||||||
29,557 | 196,931 | 187,651 | |||||||||
Total provision | $ | 392,844 | $ | 328,971 | $ | 252,399 | |||||
Schedule of domestic and foreign income before income taxes | ' | ||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 1,071,435 | $ | 886,484 | $ | 666,073 | |||||
Foreign | 42,862 | 16,096 | 20,994 | ||||||||
$ | 1,114,297 | $ | 902,580 | $ | 687,067 | ||||||
Schedule of components of net deferred tax liabilities | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment | $ | 1,161,134 | $ | 1,103,769 | |||||||
Available-for-sale securities | 117,567 | 154,463 | |||||||||
Other | 55 | 4 | |||||||||
Total deferred tax liabilities | 1,278,756 | 1,258,236 | |||||||||
Deferred tax assets: | |||||||||||
Pension reserves | 2,146 | 9,482 | |||||||||
Self-insurance reserves | 8,357 | 7,737 | |||||||||
Net operating loss and foreign tax credit carryforwards | 54,867 | 59,730 | |||||||||
Financial accruals | 48,963 | 39,833 | |||||||||
Other | 7,487 | 6,533 | |||||||||
Total deferred tax assets | 121,820 | 123,315 | |||||||||
Valuation allowance | 49,631 | 56,564 | |||||||||
Net deferred tax assets | 72,189 | 66,751 | |||||||||
Net deferred tax liabilities | $ | 1,206,567 | $ | 1,191,485 | |||||||
Schedule of effective income tax rates as compared to the U.S. Federal income tax rate | ' | ||||||||||
Years Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Effect of foreign taxes | 1.1 | 0.7 | 0.6 | ||||||||
State income taxes, net of federal tax benefit | 1.5 | 1.4 | 1.8 | ||||||||
U.S. domestic production activities | (2.1 | ) | (1.1 | ) | (0.5 | ) | |||||
Other | (0.2 | ) | 0.4 | (0.2 | ) | ||||||
Effective income tax rate | 35.3 | % | 36.4 | % | 36.7 | % | |||||
Schedule of reconciliation of the change in the entity's gross unrecognized tax benefits | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Unrecognized tax benefits at October 1, | $ | 8,438 | $ | 6,878 | |||||||
Gross decreases—tax positions in prior periods | (914 | ) | (4 | ) | |||||||
Gross increases—tax positions in prior periods | 1,896 | 2,632 | |||||||||
Gross decreases—current period effect of tax positions | (437 | ) | (384 | ) | |||||||
Gross increases—current period effect of tax positions | 147 | 142 | |||||||||
Expiration of statute of limitations for assessments | (1,001 | ) | (826 | ) | |||||||
Unrecognized tax benefits at September 30, | $ | 8,129 | $ | 8,438 | |||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||||||
Summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense | ' | |||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Compensation expense | ||||||||||||||||||||
Stock options | $ | 11,512 | $ | 9,791 | $ | 7,224 | ||||||||||||||
Restricted stock | 11,759 | 8,287 | 4,877 | |||||||||||||||||
$ | 23,271 | $ | 18,078 | $ | 12,101 | |||||||||||||||
Summary of weighted-average assumptions utilized in determining the fair value of options granted | ' | |||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Risk-free interest rate | 0.7 | % | 1 | % | 1.9 | % | ||||||||||||||
Expected stock volatility | 53.9 | % | 53.3 | % | 51.6 | % | ||||||||||||||
Dividend yield | 1.1 | % | 0.4 | % | 0.5 | % | ||||||||||||||
Expected term (in years) | 5.5 | 5.5 | 5.5 | |||||||||||||||||
Summary of stock option activity | ' | |||||||||||||||||||
The following summary reflects the stock option activity for our common stock and related information for fiscal 2013, 2012 and 2011 (shares in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Options | Weighted-Average | Options | Weighted-Average | Options | Weighted-Average | |||||||||||||||
Exercise Price | Exercise Price | Exercise Price | ||||||||||||||||||
Outstanding at October 1, | 4,690 | $ | 29.56 | 4,589 | $ | 25.84 | 5,572 | $ | 22.82 | |||||||||||
Granted | 365 | 54.18 | 456 | 59.68 | 324 | 47.94 | ||||||||||||||
Exercised | (1,057 | ) | 20.68 | (314 | ) | 17.24 | (1,289 | ) | 18.24 | |||||||||||
Forfeited/Expired | (7 | ) | 52.32 | (41 | ) | 42.21 | (18 | ) | 34.06 | |||||||||||
Outstanding on September 30, | 3,991 | $ | 34.12 | 4,690 | $ | 29.56 | 4,589 | $ | 25.84 | |||||||||||
Exercisable on September 30, | 3,063 | $ | 28.48 | 3,575 | $ | 24.66 | 3,287 | $ | 22.35 | |||||||||||
Shares available to grant | 4,116 | 5,082 | 6,000 | |||||||||||||||||
Summary of information about outstanding and exercisable stock options | ' | |||||||||||||||||||
The following table summarizes information about stock options at September 30, 2013 (shares in thousands): | ||||||||||||||||||||
Outstanding Stock Options | Exercisable Stock Options | |||||||||||||||||||
Range of Exercise Prices | Options | Weighted-Average | Weighted-Average | Options | Weighted-Average | |||||||||||||||
Remaining Life | Exercise Price | Exercise Price | ||||||||||||||||||
$12.08 to $21.065 | 1,254 | 2.9 | $ | 17.77 | 1,254 | $ | 17.77 | |||||||||||||
$26.895 to $38.015 | 1,654 | 4.1 | $ | 33.04 | 1,522 | $ | 32.62 | |||||||||||||
$47.29 to $59.76 | 1,083 | 8.4 | $ | 54.71 | 287 | $ | 53.28 | |||||||||||||
$12.08 to $59.76 | 3,991 | 4.9 | $ | 34.12 | 3,063 | $ | 28.48 | |||||||||||||
Summary of restricted stock awards and changes in restricted stock outstanding | ' | |||||||||||||||||||
A summary of the status of our restricted stock awards as of September 30, 2013, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2013, 2012 and 2011, is as follows (share amounts in thousands): | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Shares | Weighted-Average | Shares | Weighted-Average | Shares | Weighted-Average | |||||||||||||||
Grant Date Fair | Grant Date Fair | Grant Date Fair | ||||||||||||||||||
Value per Share | Value per Share | Value per Share | ||||||||||||||||||
Outstanding at October 1, | 430 | $ | 52.52 | 323 | $ | 42.38 | 289 | $ | 35.23 | |||||||||||
Granted | 307 | 54.18 | 244 | 59.76 | 169 | 47.94 | ||||||||||||||
Vested (1) | (155 | ) | 45.88 | (119 | ) | 40.21 | (134 | ) | 33.92 | |||||||||||
Forfeited/Expired | (6 | ) | 54.67 | (18 | ) | 49.75 | (1 | ) | 47.94 | |||||||||||
Outstanding on September 30, | 576 | $ | 55.17 | 430 | $ | 52.52 | 323 | $ | 42.38 | |||||||||||
-1 | ||||||||||||||||||||
The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. | ||||||||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Computation of basic and diluted earnings per share | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 721,453 | $ | 573,609 | $ | 434,668 | |||||
Income (loss) from discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
Net income | 736,639 | 581,045 | 434,186 | ||||||||
Adjustment for basic earnings per share | |||||||||||
Earnings allocated to unvested shareholders | (3,842 | ) | (2,246 | ) | (1,295 | ) | |||||
Numerator for basic earnings per share: | |||||||||||
From continuing operations | 717,611 | 571,363 | 433,373 | ||||||||
From discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
732,797 | 578,799 | 432,891 | |||||||||
Adjustment for diluted earnings per share: | |||||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 46 | 31 | 22 | ||||||||
Numerator for diluted earnings per share: | |||||||||||
From continuing operations | 717,657 | 571,394 | 433,395 | ||||||||
From discontinued operations | 15,186 | 7,436 | (482 | ) | |||||||
$ | 732,843 | $ | 578,830 | $ | 432,913 | ||||||
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted-average shares | 106,286 | 106,819 | 106,643 | ||||||||
Effect of dilutive shares from stock options and restricted stock | 1,593 | 1,558 | 1,989 | ||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares | 107,879 | 108,377 | 108,632 | ||||||||
Basic earnings per common share: | |||||||||||
Income from continuing operations | $ | 6.75 | $ | 5.35 | $ | 4.06 | |||||
Income from discontinued operations | 0.14 | 0.07 | — | ||||||||
Net income | $ | 6.89 | $ | 5.42 | $ | 4.06 | |||||
Diluted earnings per common share: | |||||||||||
Income from continuing operations | $ | 6.65 | $ | 5.27 | $ | 3.99 | |||||
Income from discontinued operations | 0.14 | 0.07 | — | ||||||||
Net income | $ | 6.79 | $ | 5.34 | $ | 3.99 | |||||
Shares attributable to outstanding equity awards excluded from the calculation of diluted earnings per share | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except | |||||||||||
per share amounts) | |||||||||||
Shares excluded from calculation of diluted earnings per share | 743 | 446 | 310 | ||||||||
Weighted-average price per share | $ | 57.27 | $ | 59.68 | $ | 47.94 |
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | ' | |||||||||||||
Summary of available-for-sale securities | ' | |||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
Gains | Losses | Value | ||||||||||||
(in thousands) | ||||||||||||||
Equity Securities: | ||||||||||||||
September 30, 2013 | $ | 68,434 | $ | 237,214 | $ | — | $ | 305,648 | ||||||
September 30, 2012 | $ | 129,183 | $ | 304,396 | $ | — | $ | 433,579 | ||||||
Summary of assets measured at fair value on a recurring basis | ' | |||||||||||||
The following table summarizes our assets measured at fair value on a recurring basis presented in our Consolidated Balance Sheets as of September 30, 2013: | ||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||
Measured at | in Active | Other | Unobservable | |||||||||||
Fair Value | Markets for | Observable | Inputs | |||||||||||
Identical | Inputs | (Level 3) | ||||||||||||
Assets | (Level 2) | |||||||||||||
(Level 1) | ||||||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 447,868 | $ | 447,868 | $ | — | $ | — | ||||||
Investments | 305,648 | 305,648 | — | — | ||||||||||
Other current assets | 27,396 | 27,146 | 250 | — | ||||||||||
Other assets | 2,000 | 2,000 | — | — | ||||||||||
Total assets measured at fair value | $ | 782,912 | $ | 782,662 | $ | 250 | $ | — | ||||||
Summary of supplemental fair value information about long-term fixed-rate debt | ' | |||||||||||||
September 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||
Carrying value of long-term fixed-rate debt | $ | 195 | $ | 235 | ||||||||||
Fair value of long-term fixed-rate debt | $ | 205.4 | $ | 252.7 |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||||||||
Schedule of reconciliation of the changes in the pension benefit obligations, fair value of Pension Plan assets and statement of the funded status | ' | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Accumulated Benefit Obligation | $ | 102,680 | $ | 112,062 | |||||||||||||||||||
Changes in projected benefit obligations | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 112,062 | $ | 104,911 | |||||||||||||||||||
Interest cost | 4,339 | 4,498 | |||||||||||||||||||||
Actuarial (gain) loss | (9,320 | ) | 5,990 | ||||||||||||||||||||
Benefits paid | (4,401 | ) | (3,337 | ) | |||||||||||||||||||
Projected benefit obligation at end of year | $ | 102,680 | $ | 112,062 | |||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 86,718 | $ | 67,284 | |||||||||||||||||||
Actual return on plan assets | 12,369 | 14,495 | |||||||||||||||||||||
Employer contribution | 2,132 | 8,276 | |||||||||||||||||||||
Benefits paid | (4,401 | ) | (3,337 | ) | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 96,818 | $ | 86,718 | |||||||||||||||||||
Funded status of the plan at end of year | $ | (5,862 | ) | $ | (25,344 | ) | |||||||||||||||||
Schedule of amounts recognized in the Consolidated Balance Sheets | ' | ||||||||||||||||||||||
The amounts recognized in the Consolidated Balance Sheets are as follows (in thousands): | |||||||||||||||||||||||
Accrued liabilities | $ | (145 | ) | $ | (95 | ) | |||||||||||||||||
Noncurrent liabilities-other | (5,717 | ) | (25,249 | ) | |||||||||||||||||||
Net amount recognized | $ | (5,862 | ) | $ | (25,344 | ) | |||||||||||||||||
Schedule of amounts recognized in Accumulated Other Comprehensive Income and not yet reflected in net periodic benefit cost | ' | ||||||||||||||||||||||
The amounts recognized in Accumulated Other Comprehensive Income at September 30, 2013 and 2012, and not yet reflected in net periodic benefit cost, are as follows (in thousands): | |||||||||||||||||||||||
Net actuarial loss | $ | (19,210 | ) | $ | (37,172 | ) | |||||||||||||||||
Prior service cost | — | (1 | ) | ||||||||||||||||||||
Total | $ | (19,210 | ) | $ | (37,173 | ) | |||||||||||||||||
Schedule of weighted average assumptions used for the pension calculations | ' | ||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Discount rate for net periodic benefit costs | 4.06 | % | 4.33 | % | 4.48 | % | |||||||||||||||||
Discount rate for year-end obligations | 4.8 | % | 4.06 | % | 4.33 | % | |||||||||||||||||
Expected return on plan assets | 7.06 | % | 7.16 | % | 8 | % | |||||||||||||||||
Schedule of components of net periodic pension expense (benefit) | ' | ||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Interest cost | $ | 4,339 | $ | 4,498 | $ | 4,519 | |||||||||||||||||
Expected return on plan assets | (6,099 | ) | (5,463 | ) | (5,050 | ) | |||||||||||||||||
Amortization of prior service cost | 1 | 2 | — | ||||||||||||||||||||
Recognized net actuarial loss | 2,372 | 3,567 | 2,976 | ||||||||||||||||||||
Settlement/curtailment | — | — | 28 | ||||||||||||||||||||
Net pension expense (benefit) | $ | 613 | $ | 2,604 | $ | 2,473 | |||||||||||||||||
Schedule of expected benefits to be paid from pension plan | ' | ||||||||||||||||||||||
The following table reflects the expected benefits to be paid from the Pension Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter (in thousands). | |||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 - 2023 | Total | |||||||||||||||||
$ | 5,314 | $ | 5,903 | $ | 6,494 | $ | 5,979 | $ | 7,612 | $ | 36,529 | $ | 67,831 | ||||||||||
Schedule of target allocation and the asset allocation for the Pension Plan | ' | ||||||||||||||||||||||
Target | Percentage | ||||||||||||||||||||||
Allocation | of Plan | ||||||||||||||||||||||
Assets At | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
Asset Category | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. equities | 55 | % | 58 | % | 55 | % | |||||||||||||||||
International equities | 15 | 13 | 12 | ||||||||||||||||||||
Fixed income | 27 | 27 | 25 | ||||||||||||||||||||
Real estate and other | 3 | 2 | 8 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Schedule of fair value of plan assets, summarized by level within fair value hierarchy | ' | ||||||||||||||||||||||
Fair Value as of September 30, 2013 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Short-term investments | $ | 1,983 | $ | 1,983 | $ | — | $ | — | |||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Domestic stock funds | 44,129 | 44,129 | — | — | |||||||||||||||||||
Bond funds | 23,749 | 23,749 | — | — | |||||||||||||||||||
International stock funds | 12,519 | 12,519 | — | — | |||||||||||||||||||
Total mutual funds | 80,397 | 80,397 | — | — | |||||||||||||||||||
Domestic common stock | 12,998 | 12,998 | — | — | |||||||||||||||||||
Foreign equity stock | 1,153 | 1,153 | — | — | |||||||||||||||||||
Oil and gas properties | 287 | — | — | 287 | |||||||||||||||||||
Total | $ | 96,818 | $ | 96,531 | $ | — | $ | 287 | |||||||||||||||
Fair Value as of September 30, 2012 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Short-term investments | $ | 7,233 | $ | 7,233 | $ | — | $ | — | |||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Domestic stock funds | 36,209 | 36,209 | — | — | |||||||||||||||||||
Bond funds | 21,458 | 21,458 | — | — | |||||||||||||||||||
International stock funds | 10,069 | 10,069 | — | — | |||||||||||||||||||
Total mutual funds | 67,736 | 67,736 | — | — | |||||||||||||||||||
Domestic common stock | 10,543 | 10,543 | — | — | |||||||||||||||||||
Foreign equity stock | 907 | 907 | — | — | |||||||||||||||||||
Oil and gas properties | 299 | — | — | 299 | |||||||||||||||||||
Total | $ | 86,718 | $ | 86,419 | $ | — | $ | 299 | |||||||||||||||
Summary of changes in fair value of plan's Level 3 assets | ' | ||||||||||||||||||||||
Oil and Gas | |||||||||||||||||||||||
Properties | |||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance, beginning of year | $ | 299 | $ | 275 | |||||||||||||||||||
Unrealized gains (losses) relating to property still held at the reporting date | (12 | ) | 24 | ||||||||||||||||||||
Balance, end of year | $ | 287 | $ | 299 | |||||||||||||||||||
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | ||||||||||
Schedule of supplemental balance sheet information, reflecting activity in the entity's reserve for bad debt | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Reserve for bad debt: | |||||||||||
Balance at October 1, | $ | 942 | $ | 776 | $ | 830 | |||||
Provision for bad debt | 3,875 | 205 | 106 | ||||||||
Write-off of bad debt | (22 | ) | (39 | ) | (160 | ) | |||||
Balance at September 30, | $ | 4,795 | $ | 942 | $ | 776 | |||||
Schedule of supplemental balance sheet information, Prepaid expenses and other current assets, accrued liabilities and long-term liabilities | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other current assets: | |||||||||||
Restricted cash | $ | 23,691 | $ | 28,989 | |||||||
Prepaid insurance | 14,250 | 15,522 | |||||||||
Deferred mobilization | 11,395 | 19,809 | |||||||||
Income tax asset | 9,322 | — | |||||||||
Prepaid value added tax | 5,004 | 1,470 | |||||||||
Other | 16,276 | 8,903 | |||||||||
Total prepaid expenses and other current assets | $ | 79,938 | $ | 74,693 | |||||||
Accrued liabilities: | |||||||||||
Accrued operating costs | $ | 30,169 | $ | 37,645 | |||||||
Payroll and employee benefits | 71,658 | 52,187 | |||||||||
Taxes payable, other than income tax | 38,328 | 35,842 | |||||||||
Accrued income taxes | — | 1,325 | |||||||||
Deferred mobilization | 12,235 | 13,351 | |||||||||
Self-insurance liabilities | 7,028 | 5,611 | |||||||||
Deferred income | 11,663 | 11,280 | |||||||||
Other | 18,603 | 19,374 | |||||||||
Total accrued liabilities | $ | 189,684 | $ | 176,615 | |||||||
Noncurrent liabilities—Other: | |||||||||||
Pension and other non-qualified retirement plans | $ | 23,404 | $ | 40,142 | |||||||
Self-insurance liabilities | 12,207 | 12,385 | |||||||||
Deferred mobilization | 8,067 | 19,364 | |||||||||
Deferred income | 1,781 | 6,766 | |||||||||
Uncertain tax positions including interest and penalties | 12,844 | 12,184 | |||||||||
Other | 7,048 | 7,552 | |||||||||
Total noncurrent liabilities—other | $ | 65,351 | $ | 98,393 | |||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||
Schedule of supplement cash flow information | ' | ||||||||||
Years Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash payments: | |||||||||||
Interest paid, net of amounts capitalized | $ | 6,991 | $ | 10,711 | $ | 16,107 | |||||
Income taxes paid | $ | 363,326 | $ | 144,959 | $ | 19,621 | |||||
Schedule of reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ' | ||||||||||
September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Capital expenditures incurred | $ | 791,741 | $ | 1,082,678 | $ | 730,347 | |||||
Additions incurred prior year but paid for in current year | 46,589 | 61,591 | 25,508 | ||||||||
Additions incurred but not paid for as of the end of the year | (29,264 | ) | (46,589 | ) | (61,591 | ) | |||||
Capital expenditures per Consolidated Statements of Cash Flows | $ | 809,066 | $ | 1,097,680 | $ | 694,264 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
Schedule of future minimum rental payments required under operating leases | ' | ||||
Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of a year at September 30, 2013 are as follows: | |||||
Fiscal Year | Amount | ||||
(in thousands) | |||||
2014 | $ | 5,443 | |||
2015 | 3,536 | ||||
2016 | 2,807 | ||||
2017 | 2,720 | ||||
2018 | 2,726 | ||||
Thereafter | 15,456 | ||||
Total | $ | 32,688 | |||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
Summary of financial information of the entity's reportable segments for continuing operations | ' | ||||||||||||||||||||||
(in thousands) | External | Inter- | Total | Segment | Depreciation | Total | Additions | ||||||||||||||||
Sales | Segment | Sales | Operating | Assets | to Long-Lived | ||||||||||||||||||
Income (Loss) | Assets | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,785,449 | $ | — | $ | 2,785,449 | $ | 932,591 | $ | 391,072 | $ | 4,743,644 | $ | 726,206 | |||||||||
Offshore | 221,863 | — | 221,863 | 53,064 | 13,766 | 149,128 | 4,470 | ||||||||||||||||
International Land | 366,841 | — | 366,841 | 44,595 | 36,000 | 486,914 | 51,193 | ||||||||||||||||
3,374,153 | — | 3,374,153 | 1,030,250 | 440,838 | 5,379,686 | 781,869 | |||||||||||||||||
Other | 13,461 | 858 | 14,319 | (8,602 | ) | 14,785 | 881,436 | 9,872 | |||||||||||||||
3,387,614 | 858 | 3,388,472 | 1,021,648 | 455,623 | 6,261,122 | 791,741 | |||||||||||||||||
Eliminations | — | (858 | ) | (858 | ) | — | — | — | — | ||||||||||||||
Total | $ | 3,387,614 | $ | — | $ | 3,387,614 | $ | 1,021,648 | $ | 455,623 | $ | 6,261,122 | $ | 791,741 | |||||||||
2012 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,678,475 | $ | — | $ | 2,678,475 | $ | 906,968 | $ | 332,723 | $ | 4,422,297 | $ | 991,966 | |||||||||
Offshore | 189,086 | — | 189,086 | 41,775 | 13,455 | 160,135 | 8,547 | ||||||||||||||||
International Land | 270,027 | — | 270,027 | 20,366 | 30,701 | 467,538 | 52,864 | ||||||||||||||||
3,137,588 | — | 3,137,588 | 969,109 | 376,879 | 5,049,970 | 1,053,377 | |||||||||||||||||
Other | 14,214 | 841 | 15,055 | (8,824 | ) | 10,670 | 663,496 | 29,301 | |||||||||||||||
3,151,802 | 841 | 3,152,643 | 960,285 | 387,549 | 5,713,466 | 1,082,678 | |||||||||||||||||
Eliminations | — | (841 | ) | (841 | ) | — | — | — | — | ||||||||||||||
Total | $ | 3,151,802 | $ | — | $ | 3,151,802 | $ | 960,285 | $ | 387,549 | $ | 5,713,466 | $ | 1,082,678 | |||||||||
2011 | |||||||||||||||||||||||
Contract Drilling | |||||||||||||||||||||||
U.S. Land | $ | 2,100,508 | $ | — | $ | 2,100,508 | $ | 691,615 | $ | 264,127 | $ | 3,719,387 | $ | 694,249 | |||||||||
Offshore | 201,417 | — | 201,417 | 45,291 | 14,684 | 151,656 | 7,092 | ||||||||||||||||
International Land | 226,849 | — | 226,849 | 19,711 | 28,018 | 333,142 | 20,638 | ||||||||||||||||
2,528,774 | — | 2,528,774 | 756,617 | 306,829 | 4,204,185 | 721,979 | |||||||||||||||||
Other | 15,120 | 829 | 15,949 | (7,682 | ) | 8,639 | 792,177 | 8,368 | |||||||||||||||
2,543,894 | 829 | 2,544,723 | 748,935 | 315,468 | 4,996,362 | 730,347 | |||||||||||||||||
Eliminations | — | (829 | ) | (829 | ) | — | — | — | — | ||||||||||||||
Total | $ | 2,543,894 | $ | — | $ | 2,543,894 | $ | 748,935 | $ | 315,468 | $ | 4,996,362 | $ | 730,347 | |||||||||
Schedule of reconciliation of segment operating income to income from continuing operations before income taxes | ' | ||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Segment operating income | $ | 1,021,648 | $ | 960,285 | $ | 748,935 | |||||||||||||||||
Income from asset sales | 18,923 | 19,223 | 13,903 | ||||||||||||||||||||
Corporate general and administrative costs and corporate depreciation | (83,910 | ) | (69,909 | ) | (60,327 | ) | |||||||||||||||||
Operating income | 956,661 | 909,599 | 702,511 | ||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest and dividend income | 1,653 | 1,380 | 1,951 | ||||||||||||||||||||
Interest expense | (6,129 | ) | (8,653 | ) | (17,355 | ) | |||||||||||||||||
Gain on sale of investment securities | 162,121 | — | 913 | ||||||||||||||||||||
Other | (9 | ) | 254 | (953 | ) | ||||||||||||||||||
Total unallocated amounts | 157,636 | (7,019 | ) | (15,444 | ) | ||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,114,297 | $ | 902,580 | $ | 687,067 | |||||||||||||||||
Schedule of revenues from external customers and long-lived assets by country based on the location of service provided | ' | ||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
United States | $ | 3,011,760 | $ | 2,864,570 | $ | 2,276,118 | |||||||||||||||||
Colombia | 100,052 | 82,247 | 74,504 | ||||||||||||||||||||
Argentina | 73,208 | 54,317 | 44,205 | ||||||||||||||||||||
Ecuador | 67,890 | 56,448 | 42,598 | ||||||||||||||||||||
Other Foreign | 134,704 | 94,220 | 106,469 | ||||||||||||||||||||
Total | $ | 3,387,614 | $ | 3,151,802 | $ | 2,543,894 | |||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||||
United States | $ | 4,345,950 | $ | 4,039,770 | $ | 3,423,185 | |||||||||||||||||
Argentina | 83,149 | 81,886 | 78,221 | ||||||||||||||||||||
Colombia | 81,315 | 84,389 | 67,369 | ||||||||||||||||||||
Ecuador | 63,894 | 38,265 | 28,439 | ||||||||||||||||||||
Other Foreign | 101,795 | 107,261 | 79,856 | ||||||||||||||||||||
Total | $ | 4,676,103 | $ | 4,351,571 | $ | 3,677,070 | |||||||||||||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
Selected quarterly financial data (unaudited) | ' | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||
2013 | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||
Operating revenues | $ | 844,572 | $ | 838,309 | $ | 840,197 | $ | 864,536 | ||||||
Operating income | 240,547 | 232,920 | 239,960 | 243,234 | ||||||||||
Income from continuing operations | 159,611 | 151,067 | 250,978 | 159,797 | ||||||||||
Net income | 159,603 | 151,080 | 266,159 | 159,797 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Income from continuing operations | 1.5 | 1.41 | 2.35 | 1.49 | ||||||||||
Net income | 1.5 | 1.41 | 2.49 | 1.49 | ||||||||||
Diluted earnings per common share: | ||||||||||||||
Income from continuing operations | 1.48 | 1.39 | 2.32 | 1.47 | ||||||||||
Net income | 1.48 | 1.39 | 2.46 | 1.47 | ||||||||||
2012 | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||
Operating revenues | $ | 732,588 | $ | 769,982 | $ | 819,785 | $ | 829,447 | ||||||
Operating income | 230,539 | 207,025 | 232,655 | 239,380 | ||||||||||
Income from continuing operations | 144,297 | 129,763 | 149,943 | 149,606 | ||||||||||
Net income | 144,286 | 129,719 | 149,925 | 157,115 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Income from continuing operations | 1.34 | 1.2 | 1.4 | 1.41 | ||||||||||
Net income | 1.34 | 1.2 | 1.4 | 1.48 | ||||||||||
Diluted earnings per common share: | ||||||||||||||
Income from continuing operations | 1.32 | 1.18 | 1.38 | 1.39 | ||||||||||
Net income | 1.32 | 1.18 | 1.38 | 1.46 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
FOREIGN CURRENCIES | ' | ' | ' |
Foreign currency remeasurement and transaction gains (losses) | $700,000 | $300,000 | $1,200,000 |
RESTRICTED CASH AND CASH EQUIVALENTS | ' | ' | ' |
Restricted cash and cash equivalents | 25,700,000 | 31,000,000 | ' |
Restricted cash and cash equivalents from initial capitalization of captive company | 2,000,000 | ' | ' |
Additional cash and cash equivalents restricted at the election of management for potential insurance claims | 23,700,000 | ' | ' |
Prepaid expenses and other | 23,691,000 | 28,989,000 | ' |
Other assets | 2,000,000 | 2,000,000 | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Depreciation associated with abandonments | 9,100,000 | 16,400,000 | 4,900,000 |
CAPITALIZATION OF INTEREST | ' | ' | ' |
Capitalized interest | 8,800,000 | 12,900,000 | 8,200,000 |
DRILLING REVENUES | ' | ' | ' |
Reimbursements received | 332,500,000 | 329,700,000 | 251,000,000 |
RENT REVENUES | ' | ' | ' |
Minimum rents | 9,009,000 | 8,757,000 | 8,941,000 |
Overage and percentage rents | 1,384,000 | 1,485,000 | 1,135,000 |
Fiscal Year | ' | ' | ' |
2014 | 7,837,000 | ' | ' |
2015 | 6,479,000 | ' | ' |
2016 | 4,892,000 | ' | ' |
2017 | 3,999,000 | ' | ' |
2018 | 2,650,000 | ' | ' |
Thereafter | 5,790,000 | ' | ' |
Total | 31,647,000 | ' | ' |
Cost and accumulated depreciation for real estate properties | ' | ' | ' |
Real estate properties | 63,542,000 | 62,177,000 | ' |
Accumulated depreciation | -41,847,000 | -40,882,000 | ' |
Real estate properties, Net | $21,695,000 | $21,295,000 | ' |
Minimum | ' | ' | ' |
RENT REVENUES | ' | ' | ' |
Lease term | '3 years | ' | ' |
Maximum | ' | ' | ' |
RENT REVENUES | ' | ' | ' |
Lease term | '10 years | ' | ' |
Contract drilling equipment | Minimum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '4 years | ' | ' |
Contract drilling equipment | Maximum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Real estate buildings and equipment | Minimum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Real estate buildings and equipment | Maximum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '45 years | ' | ' |
Other | Minimum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '2 years | ' | ' |
Other | Maximum | ' | ' | ' |
PROPERTY, PLANT AND EQUIPMENT | ' | ' | ' |
Estimated useful lives | '23 years | ' | ' |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Rig | ||||
Operating results from discontinued operations | ' | ' | ' | ' |
Income (loss) before income taxes | ' | $14,701 | $7,355 | ($487) |
Income tax benefit | ' | -485 | -81 | -5 |
Income (loss) from discontinued operations | ' | 15,186 | 7,436 | -482 |
Assets and liabilities from discontinued operations | ' | ' | ' | ' |
Other current assets | ' | 3,705 | 7,619 | ' |
Total current liabilities | ' | 3,210 | 5,129 | ' |
Total noncurrent liabilities | ' | 495 | 2,490 | ' |
Venezuelan subsidiary | ' | ' | ' | ' |
Discontinued Operations, Additional Disclosures | ' | ' | ' | ' |
Number of rigs owned subject to forceful acquisition | 11 | ' | ' | ' |
Operating results from discontinued operations | ' | ' | ' | ' |
Income (loss) before income taxes | ' | 14,701 | 7,355 | -487 |
Income tax benefit | ' | -485 | -81 | -5 |
Income (loss) from discontinued operations | ' | 15,186 | 7,436 | -482 |
Assets and liabilities from discontinued operations | ' | ' | ' | ' |
Other current assets | ' | 3,705 | 7,619 | ' |
Total assets | ' | 3,705 | 7,619 | ' |
Total current liabilities | ' | 3,210 | 5,129 | ' |
Total noncurrent liabilities | ' | 495 | 2,490 | ' |
Total liabilities | ' | $3,705 | $7,619 | ' |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Replace collateral trusts | Issued to support international operations | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Series D, due August 15, 2014, 6.56% | Series D, due August 15, 2014, 6.56% | Series D, due August 15, 2014, 6.56% | Unsecured senior notes issued July 21, 2009 | Unsecured senior notes issued July 21, 2009 | Unsecured senior notes issued July 21, 2009 | Due July 21, 2013, 6.10% | Due July 21, 2014, 6.10% | Due July 21, 2014, 6.10% | Due July 21, 2015, 6.10% | Due July 21, 2015, 6.10% | Due July 21, 2016, 6.10% | Due July 21, 2016, 6.10% | |||
Trust | LetterOfCredit | Maximum | Minimum | Letter of credit | Letter of credit | Maximum | Maximum | Minimum | ||||||||||||||
LetterOfCredit | Subsequent Event | |||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding | $195,000,000 | $235,000,000 | ' | ' | ' | ' | ' | ' | ' | $75,000,000 | $75,000,000 | ' | $120,000,000 | ' | ' | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 |
Less long-term debt due within one year | 115,000,000 | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 80,000,000 | 195,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt stated interest rate percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.56% | 6.56% | ' | 6.10% | ' | ' | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% |
Ratio of debt to total capitalization (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal repayments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funded leverage ratio (as a percent) | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' |
Borrowing amount | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity to use for letters of credit | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate for the variable rate | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR spread on borrowings (as a percent) | ' | ' | ' | ' | 1.13% | 1.75% | 1.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | 0.15% | 0.35% | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing amount outstanding | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of letters of credit outstanding | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding/issued | ' | ' | ' | 12,000,000 | ' | ' | ' | 27,200,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of collateral trusts terminated | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from termination of collateral trusts | ' | ' | 26,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity excluding letters of credit transaction | ' | ' | ' | ' | $272,800,000 | ' | ' | ' | $269,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Details_2
DEBT (Details 2) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Aggregate maturities of long-term debt | ' | ' |
2014 | $115,000 | ' |
2015 | 40,000 | ' |
2016 | 40,000 | ' |
Total long-term debt | $195,000 | $235,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Current: | ' | ' | ' |
Federal | $315,820,000 | $108,297,000 | $42,377,000 |
Foreign | 14,551,000 | 13,201,000 | 14,259,000 |
State | 32,916,000 | 10,542,000 | 8,112,000 |
Total current | 363,287,000 | 132,040,000 | 64,748,000 |
Deferred: | ' | ' | ' |
Federal | 35,530,000 | 196,373,000 | 185,076,000 |
Foreign | -1,409,000 | -6,484,000 | -4,117,000 |
State | -4,564,000 | 7,042,000 | 6,692,000 |
Total deferred | 29,557,000 | 196,931,000 | 187,651,000 |
Total provision | 392,844,000 | 328,971,000 | 252,399,000 |
Amounts of domestic and foreign income before income taxes | ' | ' | ' |
Domestic | 1,071,435,000 | 886,484,000 | 666,073,000 |
Foreign | 42,862,000 | 16,096,000 | 20,994,000 |
Income from continuing operations before income taxes | 1,114,297,000 | 902,580,000 | 687,067,000 |
Deferred tax liabilities: | ' | ' | ' |
Property, plant and equipment | 1,161,134,000 | 1,103,769,000 | ' |
Available-for-sale securities | 117,567,000 | 154,463,000 | ' |
Other | 55,000 | 4,000 | ' |
Total deferred tax liabilities | 1,278,756,000 | 1,258,236,000 | ' |
Deferred tax assets: | ' | ' | ' |
Pension reserves | 2,146,000 | 9,482,000 | ' |
Self-insurance reserves | 8,357,000 | 7,737,000 | ' |
Net operating loss and foreign tax credit carryforwards | 54,867,000 | 59,730,000 | ' |
Financial accruals | 48,963,000 | 39,833,000 | ' |
Other | 7,487,000 | 6,533,000 | ' |
Total deferred tax assets | 121,820,000 | 123,315,000 | ' |
Valuation allowance | 49,631,000 | 56,564,000 | ' |
Net deferred tax assets | 72,189,000 | 66,751,000 | ' |
Net deferred tax liabilities | 1,206,567,000 | 1,191,485,000 | ' |
Operating Loss Carryforwards | ' | ' | ' |
Amount of foreign tax credit carryforwards for income tax purposes | 45,200,000 | ' | ' |
Deferred tax asset prior to consideration of valuation allowance | 41,400,000 | ' | ' |
Reasonably possible increase in the reserve for uncertain tax positions, low range | 7,600,000 | ' | ' |
Reasonably possible increase in the reserve for uncertain tax positions, high range | 10,200,000 | ' | ' |
Effective income tax rates as compared to the U.S. Federal income tax rate | ' | ' | ' |
U.S. Federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Effect of foreign taxes (as a percent) | 1.10% | 0.70% | 0.60% |
State income taxes, net of federal tax benefit (as a percent) | 1.50% | 1.40% | 1.80% |
U.S. domestic production activities (as a percent) | -2.10% | -1.10% | -0.50% |
Other | -0.20% | 0.40% | -0.20% |
Effective income tax rate (as a percent) | 35.30% | 36.40% | 36.70% |
Accrued interest and penalties related to unrecognized tax benefits | 5,200,000 | 6,100,000 | ' |
Reconciliation of the change in gross unrecognized tax benefits | ' | ' | ' |
Unrecognized tax benefits at the beginning of the period | 8,438,000 | 6,878,000 | ' |
Gross decreases - tax positions in prior periods | -914,000 | -4,000 | ' |
Gross increases - tax positions in prior periods | 1,896,000 | 2,632,000 | ' |
Gross decreases - current period effect of tax positions | -437,000 | -384,000 | ' |
Gross increases - current period effect of tax positions | 147,000 | 142,000 | ' |
Expiration of statute of limitations for assessments | -1,001,000 | -826,000 | ' |
Unrecognized tax benefits at the end of the period | 8,129,000 | 8,438,000 | 6,878,000 |
State and Local jurisdiction | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' |
Amount of net operating loss carryforwards for income tax purposes | 15,600,000 | ' | ' |
Net operating loss carryforward, valuation allowance | 1,200,000 | ' | ' |
Foreign jurisdiction | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' |
Amount of net operating loss carryforwards for income tax purposes | 35,500,000 | ' | ' |
Net operating loss carryforward, valuation allowance | 11,000,000 | ' | ' |
Foreign tax carryforwards which more likely than not will not be utilized | $37,400,000 | ' | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Unit | ||
multiple | ||
Right | ||
Outstanding preferred stock purchase rights (in shares) | 106,716,970 | ' |
Stock split ratio | 2 | ' |
Number of rights per common stock share | 0.5 | ' |
Number of units that each Right holder is entitled to purchase | 1 | ' |
Number of rights per share | 0.001 | ' |
Purchase price of preferred stock (in dollars per share) | $250 | ' |
Number of business days following the acquisition of fifteen percent or more of common stock that rights are exercisable and transferable | '10 days | ' |
Number of business days following a tender or exchange offer resulting in the acquisition of fifteen percent or more of common stock that rights are exercisable and transferable | '10 days | ' |
Number of multiples of the exercise price that the Right holder has right to receive in value of acquiring company's common stock | 2 | ' |
Redemption price per right (in dollars per shares) | $0.01 | ' |
Repurchase of common stock (in shares) | 0 | 1,747,819 |
Aggregate cost of treasury shares purchase | ' | $77,610 |
Minimum | ' | ' |
Percentage of common stock to be acquired for rights to be exercisable and transferable | 15.00% | ' |
Percentage of common stock to be acquired in a tender or exchange offer for rights to be exercisable and transferable | 15.00% | ' |
Percentage of assets or earning power sold or transferred allowing Right holder the right to receive common stock of acquiring company | 50.00% | ' |
Maximum | ' | ' |
Number of common shares authorized to be repurchased | 4,000,000 | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Plan | |||
Common-stock based award plan | ' | ' | ' |
Number of prior equity plans | 1 | ' | ' |
Compensation expense (in dollars) | $23,271 | $18,078 | $12,101 |
Excess tax benefit from stock-based compensation | 9,820 | 3,303 | 12,511 |
Stock options | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
The period from the grant date after which options expire | '10 years | ' | ' |
Compensation expense (in dollars) | 11,512 | 9,791 | 7,224 |
Option vesting rights (as a percent) | 25.00% | ' | ' |
Weighted-average assumptions utilized in determining the fair value of options | ' | ' | ' |
Risk-free interest rate (as a percent) | 0.70% | 1.00% | 1.90% |
Expected stock volatility (as a percent) | 53.90% | 53.30% | 51.60% |
Dividend yield (as a percent) | 1.10% | 0.40% | 0.50% |
Expected term | '5 years 6 months | '5 years 6 months | '5 years 6 months |
Weighted-average fair value of options granted (in dollars per share) | $23.80 | $27.70 | $22.20 |
Options | ' | ' | ' |
Options outstanding at the beginning of the period (in shares) | 4,690,000 | 4,589,000 | 5,572,000 |
Granted (in shares) | 364,624 | 456,000 | 324,000 |
Exercised (in shares) | -1,057,000 | -314,000 | -1,289,000 |
Forfeited/Expired (in shares) | -7,000 | -41,000 | -18,000 |
Option outstanding at the end of the period (in shares) | 3,991,000 | 4,690,000 | 4,589,000 |
Exercisable at the end of the period (in shares) | 3,063,000 | 3,575,000 | 3,287,000 |
Shares available to grant | 4,116,000 | 5,082,000 | 6,000,000 |
Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $29.56 | $25.84 | $22.82 |
Granted (in dollars per share) | $54.18 | $59.68 | $47.94 |
Exercised (in dollars per share) | $20.68 | $17.24 | $18.24 |
Forfeited/Expired (in dollars per share) | $52.32 | $42.21 | $34.06 |
Outstanding at the end of the period (in dollars per share) | $34.12 | $29.56 | $25.84 |
Exercisable at the end of the period (in dollars per share) | $28.48 | $24.66 | $22.35 |
Stock options | Minimum | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Stock options | Maximum | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
Vesting period | '4 years | ' | ' |
Restricted stock | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
Number of shares granted | 307,100 | 244,000 | 169,000 |
Compensation expense (in dollars) | $11,759 | $8,287 | $4,877 |
Restricted stock | Minimum | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted stock | Maximum | ' | ' | ' |
Common-stock based award plan | ' | ' | ' |
Vesting period | '6 years | ' | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Range of Exercise Prices from $12.08 to $21.065 | ' |
Information about outstanding and exercisable stock options | ' |
Exercise price, low end of range (in dollars per share) | $12.08 |
Exercise price, high end of range (in dollars per share) | $21.07 |
Outstanding Stock Options, Options at the end of the period (in shares) | 1,254 |
Outstanding Stock Options, Weighted-Average Remaining Life | '2 years 10 months 24 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $17.77 |
Exercisable Stock Options, Options at the end of the period (in shares) | 1,254 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $17.77 |
Range of Exercise Prices from $26.895 to $38.015 | ' |
Information about outstanding and exercisable stock options | ' |
Exercise price, low end of range (in dollars per share) | $26.89 |
Exercise price, high end of range (in dollars per share) | $38.02 |
Outstanding Stock Options, Options at the end of the period (in shares) | 1,654 |
Outstanding Stock Options, Weighted-Average Remaining Life | '4 years 1 month 6 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $33.04 |
Exercisable Stock Options, Options at the end of the period (in shares) | 1,522 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $32.62 |
Range of Exercise Prices from $47.29 to $59.76 | ' |
Information about outstanding and exercisable stock options | ' |
Exercise price, low end of range (in dollars per share) | $47.29 |
Exercise price, high end of range (in dollars per share) | $59.76 |
Outstanding Stock Options, Options at the end of the period (in shares) | 1,083 |
Outstanding Stock Options, Weighted-Average Remaining Life | '8 years 4 months 24 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $54.71 |
Exercisable Stock Options, Options at the end of the period (in shares) | 287 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $53.28 |
Range of Exercise Prices from $12.08 to $59.76 | ' |
Information about outstanding and exercisable stock options | ' |
Exercise price, low end of range (in dollars per share) | $12.08 |
Exercise price, high end of range (in dollars per share) | $59.76 |
Outstanding Stock Options, Options at the end of the period (in shares) | 3,991 |
Outstanding Stock Options, Weighted-Average Remaining Life | '4 years 10 months 24 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $34.12 |
Exercisable Stock Options, Options at the end of the period (in shares) | 3,063 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $28.48 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Stock options | ' | ' | ' |
Stock based awards | ' | ' | ' |
Weighted-average remaining life of exercisable stock options | '3 years 10 months 24 days | ' | ' |
Exercisable stock options, aggregate intrinsic value (in dollars) | $124 | ' | ' |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $28.48 | ' | ' |
Number of options vested or expected to vest (in shares) | 3,973,663 | ' | ' |
Options vested or expected to vest, aggregate intrinsic value (in dollars) | 138.6 | ' | ' |
Options vested or expected to vest, weighted-average exercise price (in dollars per share) | $34.07 | ' | ' |
Unrecognized compensation cost (in dollars) | 9.3 | ' | ' |
Period over which unrecognized compensation cost is expected to be recognized | '2 years 4 months 24 days | ' | ' |
Total intrinsic value of options exercised (in dollars) | 40.4 | 12 | 50.5 |
Grant date fair value of shares vested (in dollars) | 9.3 | 8.1 | 7.9 |
Restricted stock | ' | ' | ' |
Stock based awards | ' | ' | ' |
Unrecognized compensation cost (in dollars) | $17.50 | ' | ' |
Period over which unrecognized compensation cost is expected to be recognized | '2 years 8 months 12 days | ' | ' |
Restricted stock awards activity, shares | ' | ' | ' |
Unvested at the beginning of the period (in shares) | 430,000 | 323,000 | 289,000 |
Granted (in shares) | 307,100 | 244,000 | 169,000 |
Vested (in shares) | -155,000 | -119,000 | -134,000 |
Forfeited/Expired (in shares) | -6,000 | -18,000 | -1,000 |
Unvested at the end of the period (in shares) | 576,000 | 430,000 | 323,000 |
Restricted stock awards activity, weighted average grant date fair value | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | $52.52 | $42.38 | $35.23 |
Granted (in dollars per share) | $54.18 | $59.76 | $47.94 |
Vested (in dollars per share) | $45.88 | $40.21 | $33.92 |
Forfeited/Expired (in dollars per share) | $54.67 | $49.75 | $47.94 |
Unvested at the end of the period (in dollars per share) | $55.17 | $52.52 | $42.38 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $159,797 | $250,978 | $151,067 | $159,611 | $149,606 | $149,943 | $129,763 | $144,297 | $721,453 | $573,609 | $434,668 |
Income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 15,186 | 7,436 | -482 |
NET INCOME | 159,797 | 266,159 | 151,080 | 159,603 | 157,115 | 149,925 | 129,719 | 144,286 | 736,639 | 581,045 | 434,186 |
Adjustment for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings allocated to unvested shareholders | ' | ' | ' | ' | ' | ' | ' | ' | -3,842 | -2,246 | -1,295 |
Numerator for basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
From continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 717,611 | 571,363 | 433,373 |
From discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 15,186 | 7,436 | -482 |
Net income (loss) attributable to parent, basic | ' | ' | ' | ' | ' | ' | ' | ' | 732,797 | 578,799 | 432,891 |
Adjustment for diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of reallocating undistributed earnings of unvested shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 31 | 22 |
Numerator for diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
From continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 717,657 | 571,394 | 433,395 |
From discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 15,186 | 7,436 | -482 |
Net income (loss) attributable to parent, diluted | ' | ' | ' | ' | ' | ' | ' | ' | $732,843 | $578,830 | $432,913 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted-average shares | ' | ' | ' | ' | ' | ' | ' | ' | 106,286 | 106,819 | 106,643 |
Effect of dilutive shares from stock options and restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,593 | 1,558 | 1,989 |
Denominator for diluted earnings per share - adjusted weighted-average shares | ' | ' | ' | ' | ' | ' | ' | ' | 107,879 | 108,377 | 108,632 |
Basic earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.49 | $2.35 | $1.41 | $1.50 | $1.41 | $1.40 | $1.20 | $1.34 | $6.75 | $5.35 | $4.06 |
Income from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.14 | $0.07 | ' |
Net income (in dollars per share) | $1.49 | $2.49 | $1.41 | $1.50 | $1.48 | $1.40 | $1.20 | $1.34 | $6.89 | $5.42 | $4.06 |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.47 | $2.32 | $1.39 | $1.48 | $1.39 | $1.38 | $1.18 | $1.32 | $6.65 | $5.27 | $3.99 |
Income from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.14 | $0.07 | ' |
Net income (in dollars per share) | $1.47 | $2.46 | $1.39 | $1.48 | $1.46 | $1.38 | $1.18 | $1.32 | $6.79 | $5.34 | $3.99 |
Outstanding equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares excluded from calculation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 743 | 446 | 310 |
Weighted-average price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $57.27 | $59.68 | $47.94 |
FINANCIAL_INSTRUMENTS_AND_FAIR2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Partnership | Equity securities | Equity securities | Equity securities | ||||
Available-for-sale securities | ' | ' | ' | ' | ' | ' | ' |
Cost | ' | ' | ' | ' | $68,434,000 | $129,183,000 | ' |
Gross unrealized gains | ' | ' | ' | ' | 237,214,000 | 304,396,000 | ' |
Estimated fair value | ' | ' | ' | ' | 305,648,000 | 433,579,000 | ' |
Equity available-for-sale securities sold, fair value | ' | ' | ' | ' | 214,100,000 | 0 | 0 |
Total gross realized gain on such sales of available-for-sale securities | ' | ' | ' | ' | 153,400,000 | ' | ' |
Limited Liability Partnerships | ' | ' | ' | ' | ' | ' | ' |
Number of limited partnerships that entity sold shares of the partnership | 3 | ' | ' | ' | ' | ' | ' |
Investments in limited partnerships sold, fair value | ' | 3,900,000 | ' | ' | ' | ' | ' |
Investments in limited partnerships, at carried cost | ' | ' | 9,400,000 | 3,000,000 | ' | ' | ' |
Realized gain on sale of investment securities | 8,800,000 | 900,000 | ' | ' | ' | ' | ' |
Investments in limited partnerships, at fair value | ' | ' | 18,000,000 | ' | ' | ' | ' |
Non-qualified Supplemental Savings Plan | ' | ' | ' | ' | ' | ' | ' |
Assets held in Non-qualified Supplement Savings Plan, at Fair Value | $10,500,000 | ' | $8,200,000 | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_AND_FAIR3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (Details 2) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental fair value information about long-term fixed-rate debt | ' | ' |
Carrying value of long-term fixed-rate debt | $195,000,000 | $235,000,000 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Supplemental fair value information about long-term fixed-rate debt | ' | ' |
Carrying value of long-term fixed-rate debt | 195,000,000 | 235,000,000 |
Fair value of long-term fixed-rate debt | 205,400,000 | 252,700,000 |
Recurring basis | Total Measure at Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 447,868,000 | ' |
Investments | 305,648,000 | ' |
Other current assets | 27,396,000 | ' |
Other assets | 2,000,000 | ' |
Total assets measured at fair value | 782,912,000 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 447,868,000 | ' |
Investments | 305,648,000 | ' |
Other current assets | 27,146,000 | ' |
Other assets | 2,000,000 | ' |
Total assets measured at fair value | 782,662,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Other current assets | 250,000 | ' |
Total assets measured at fair value | $250,000 | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
EMPLOYEE BENEFIT PLANS | ' | ' | ' |
Accumulated Benefit Obligation | $102,680,000 | $112,062,000 | ' |
Changes in projected benefit obligations | ' | ' | ' |
Projected benefit obligation at beginning of year | 112,062,000 | 104,911,000 | ' |
Interest cost | 4,339,000 | 4,498,000 | 4,519,000 |
Actuarial (gain) loss | -9,320,000 | 5,990,000 | ' |
Benefits paid | -4,401,000 | -3,337,000 | ' |
Projected benefit obligation at end of year | 102,680,000 | 112,062,000 | 104,911,000 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 86,718,000 | 67,284,000 | ' |
Actual return on plan assets | 12,369,000 | 14,495,000 | ' |
Employer contribution | 2,132,000 | 8,276,000 | ' |
Benefits paid | -4,401,000 | -3,337,000 | ' |
Fair value of plan assets at end of year | 96,818,000 | 86,718,000 | 67,284,000 |
Funded status of the plan at end of year | -5,862,000 | -25,344,000 | ' |
Amounts Recognized in the Consolidated Balance Sheets | ' | ' | ' |
Accrued liabilities | -145,000 | -95,000 | ' |
Noncurrent liabilities-other | -5,717,000 | -25,249,000 | ' |
Net amount recognized | -5,862,000 | -25,344,000 | ' |
Amounts recognized in accumulated other comprehensive income and not yet reflected in net periodic benefit cost | ' | ' | ' |
Net actuarial loss | -19,210,000 | -37,172,000 | ' |
Prior service cost | ' | -1,000 | ' |
Total | -19,210,000 | -37,173,000 | ' |
Net actuarial loss, which is expected to be amortized in next year's periodic benefit cost | 900,000 | ' | ' |
Weighted average assumptions used for the pension calculations | ' | ' | ' |
Discount rate for net periodic benefit costs (as a percent) | 4.06% | 4.33% | 4.48% |
Discount rate for year-end obligations (as a percent) | 4.80% | 4.06% | 4.33% |
Expected return on plan assets (as a percent) | 7.06% | 7.16% | 8.00% |
Components of the net periodic pension expense (benefit) | ' | ' | ' |
Interest cost | 4,339,000 | 4,498,000 | 4,519,000 |
Expected return on plan assets | -6,099,000 | -5,463,000 | -5,050,000 |
Amortization of prior service cost | 1,000 | 2,000 | ' |
Recognized net actuarial loss | 2,372,000 | 3,567,000 | 2,976,000 |
Settlement/curtailment | ' | ' | 28,000 |
Net pension expense (benefit) | 613,000 | 2,604,000 | 2,473,000 |
Expected benefits to be paid from the Pension Plan | ' | ' | ' |
2014 | 5,314,000 | ' | ' |
2015 | 5,903,000 | ' | ' |
2016 | 6,494,000 | ' | ' |
2017 | 5,979,000 | ' | ' |
2018 | 7,612,000 | ' | ' |
2019-2023 | 36,529,000 | ' | ' |
Total | 67,831,000 | ' | ' |
PLAN ASSETS | ' | ' | ' |
Target Allocation (as a percent) | 100.00% | ' | ' |
Percentage of Plan Assets | 100.00% | 100.00% | ' |
Estimated contributions | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Estimated contribution by the employer in next fiscal year to Pension Plan | $100,000 | ' | ' |
U.S. equities | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Target Allocation (as a percent) | 55.00% | ' | ' |
Percentage of Plan Assets | 58.00% | 55.00% | ' |
International equities | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Target Allocation (as a percent) | 15.00% | ' | ' |
Percentage of Plan Assets | 13.00% | 12.00% | ' |
Fixed income | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Target Allocation (as a percent) | 27.00% | ' | ' |
Percentage of Plan Assets | 27.00% | 25.00% | ' |
Real estate and other | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Target Allocation (as a percent) | 3.00% | ' | ' |
Percentage of Plan Assets | 2.00% | 8.00% | ' |
EMPLOYEE_BENEFIT_PLANS_Details1
EMPLOYEE BENEFIT PLANS (Details 2) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | |||
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | $96,818 | $86,718 | $67,284 |
Oil and Gas Properties | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 287 | 299 | 275 |
Total Measure at Fair Value | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 96,818 | 86,718 | ' |
Total Measure at Fair Value | Short-term investments | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 1,983 | 7,233 | ' |
Total Measure at Fair Value | Mutual funds: | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 80,397 | 67,736 | ' |
Total Measure at Fair Value | Domestic stock funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 44,129 | 36,209 | ' |
Total Measure at Fair Value | Bond funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 23,749 | 21,458 | ' |
Total Measure at Fair Value | International stock funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 12,519 | 10,069 | ' |
Total Measure at Fair Value | Domestic common stock | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 12,998 | 10,543 | ' |
Total Measure at Fair Value | Foreign equity stock | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 1,153 | 907 | ' |
Total Measure at Fair Value | Oil and Gas Properties | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 287 | 299 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 96,531 | 86,419 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 1,983 | 7,233 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds: | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 80,397 | 67,736 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic stock funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 44,129 | 36,209 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Bond funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 23,749 | 21,458 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International stock funds | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 12,519 | 10,069 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic common stock | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 12,998 | 10,543 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign equity stock | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 1,153 | 907 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | 287 | 299 | ' |
Significant Unobservable Inputs (Level 3) | Oil and Gas Properties | ' | ' | ' |
PLAN ASSETS | ' | ' | ' |
Fair value of plan assets | $287 | $299 | ' |
EMPLOYEE_BENEFIT_PLANS_Details2
EMPLOYEE BENEFIT PLANS (Details 3) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at beginning of year | $86,718,000 | $67,284,000 | ' |
Fair value of plan assets at end of year | 96,818,000 | 86,718,000 | 67,284,000 |
DEFINED CONTRIBUTION PLAN | ' | ' | ' |
Percentage of employer's contribution under 401(k)/ Thrift Plan matching the first 5 percent of participant's compensation subject to certain limitations | 100.00% | ' | ' |
Percentage of participant's compensation eligible for employer's matching contribution | 5.00% | ' | ' |
Annual expense incurred for defined contribution plan | 28,300,000 | 26,700,000 | 21,000,000 |
Oil and Gas Properties | ' | ' | ' |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 299,000 | 275,000 | ' |
Unrealized gains (losses) relating to property still held at the reporting date | -12,000 | 24,000 | ' |
Fair value of plan assets at end of year | $287,000 | $299,000 | ' |
SUPPLEMENTAL_BALANCE_SHEET_INF2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Reserve for bad debt: | ' | ' | ' |
Balance at the beginning of the period | $942 | $776 | $830 |
Provision for bad debt | 3,875 | 205 | 106 |
Write-off of bad debt | -22 | -39 | -160 |
Balance at the end of the period | 4,795 | 942 | 776 |
Prepaid expenses and other current assets: | ' | ' | ' |
Restricted cash | 23,691 | 28,989 | ' |
Prepaid insurance | 14,250 | 15,522 | ' |
Deferred mobilization | 11,395 | 19,809 | ' |
Income tax asset | 9,322 | ' | ' |
Prepaid value added tax | 5,004 | 1,470 | ' |
Other | 16,276 | 8,903 | ' |
Total prepaid expenses and other current assets | 79,938 | 74,693 | ' |
Accrued liabilities: | ' | ' | ' |
Accrued operating costs | 30,169 | 37,645 | ' |
Payroll and employee benefits | 71,658 | 52,187 | ' |
Taxes payable, other than income tax | 38,328 | 35,842 | ' |
Accrued income taxes | ' | 1,325 | ' |
Deferred mobilization | 12,235 | 13,351 | ' |
Self-insurance liabilities | 7,028 | 5,611 | ' |
Deferred income | 11,663 | 11,280 | ' |
Other | 18,603 | 19,374 | ' |
Total accrued liabilities | 189,684 | 176,615 | ' |
Noncurrent liabilities - Other: | ' | ' | ' |
Pension and other non-qualified retirement plans | 23,404 | 40,142 | ' |
Self-insurance liabilities | 12,207 | 12,385 | ' |
Deferred mobilization | 8,067 | 19,364 | ' |
Deferred income | 1,781 | 6,766 | ' |
Uncertain tax positions including interest and penalties | 12,844 | 12,184 | ' |
Other | 7,048 | 7,552 | ' |
Total noncurrent liabilities - other | $65,351 | $98,393 | ' |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Cash payments: | ' | ' | ' |
Interest paid, net of amounts capitalized | $6,991 | $10,711 | $16,107 |
Income taxes paid | 363,326 | 144,959 | 19,621 |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ' | ' | ' |
Capital expenditures incurred | 791,741 | 1,082,678 | 730,347 |
Additions incurred prior year but paid for in current year | 46,589 | 61,591 | 25,508 |
Additions incurred but not paid for as of the end of the year | -29,264 | -46,589 | -61,591 |
Capital expenditures per Consolidated Statements of Cash Flows | $809,066 | $1,097,680 | $694,264 |
RISK_FACTORS_Details
RISK FACTORS (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Period for which cumulative inflation rates used for considering country as highly inflationary | '3 years |
Minimum | ' |
Insurance coverage deductibles range for claims which occur outside or inside the United States | 1 |
Cumulative inflation rate before a country is considered highly inflationary (as a percent) | 100.00% |
Maximum | ' |
Insurance coverage deductibles range for claims which occur outside or inside the United States | 3 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Nov. 14, 2013 | Nov. 27, 2013 | Nov. 27, 2013 | |
hp | Subsequent Event | Subsequent Event | Subsequent Event | |||
sqft | Rig | Rig | ||||
Rig | ||||||
Purchase obligations | ' | ' | ' | ' | ' | ' |
Number of new FlexRigs to build and operate (in rigs) | 5 | ' | ' | ' | ' | 13 |
Number of new FlexRigs under construction (in rigs) | ' | ' | ' | 9 | ' | ' |
Number of new AC drive rigs under construction (in rigs) | ' | ' | ' | 1 | ' | ' |
Monetary penalty paid | ' | ' | ' | ' | $5,400,000 | ' |
Organizational community service payment | ' | ' | ' | ' | 1,000,000 | ' |
Number of AC drive rigs to build and operate (in rigs) | 1 | ' | ' | ' | ' | ' |
Number of horsepower in AC drive to build and operate (in rigs) | 3,000 | ' | ' | ' | ' | ' |
Purchase orders outstanding for drilling equipment | 79,600,000 | ' | ' | ' | ' | ' |
LEASES | ' | ' | ' | ' | ' | ' |
Area of leased office space (in square feet) | 176,000 | ' | ' | ' | ' | ' |
Fiscal Year | ' | ' | ' | ' | ' | ' |
2014 | 5,443,000 | ' | ' | ' | ' | ' |
2015 | 3,536,000 | ' | ' | ' | ' | ' |
2016 | 2,807,000 | ' | ' | ' | ' | ' |
2017 | 2,720,000 | ' | ' | ' | ' | ' |
2018 | 2,726,000 | ' | ' | ' | ' | ' |
Thereafter | 15,456,000 | ' | ' | ' | ' | ' |
Total | 32,688,000 | ' | ' | ' | ' | ' |
Total rent expense | 9,900,000 | 8,500,000 | 5,800,000 | ' | ' | ' |
CONTINGENCIES | ' | ' | ' | ' | ' | ' |
Gain contingencies recognized in consolidated financial statements | 0 | ' | ' | ' | ' | ' |
Proceeds from settlement of arbitration disputes with third parties not affiliated with the Venezuelan government, Petroleo or PDVSA related to seizure of property in Venezuela | $15,000,000 | $7,500,000 | ' | ' | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $864,536 | $840,197 | $838,309 | $844,572 | $829,447 | $819,785 | $769,982 | $732,588 | $3,387,614 | $3,151,802 | $2,543,894 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,021,648 | 960,285 | 748,935 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 455,623 | 387,549 | 315,468 |
Total assets | 6,261,122 | ' | ' | ' | 5,713,466 | ' | ' | ' | 6,261,122 | 5,713,466 | 4,996,362 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 791,741 | 1,082,678 | 730,347 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,021,648 | 960,285 | 748,935 |
Income from asset sales | ' | ' | ' | ' | ' | ' | ' | ' | 18,923 | 19,223 | 13,903 |
Corporate general and administrative costs and corporate depreciation | ' | ' | ' | ' | ' | ' | ' | ' | -83,910 | -69,909 | -60,327 |
Operating income from continuing operations | 243,234 | 239,960 | 232,920 | 240,547 | 239,380 | 232,655 | 207,025 | 230,539 | 956,661 | 909,599 | 702,511 |
Other income (expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and dividend income | ' | ' | ' | ' | ' | ' | ' | ' | 1,653 | 1,380 | 1,951 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -6,129 | -8,653 | -17,355 |
Gain on sale of investment securities | ' | 92,400 | ' | 5,500 | ' | ' | ' | ' | 162,121 | ' | 913 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -9 | 254 | -953 |
Total other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 157,636 | -7,019 | -15,444 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,114,297 | 902,580 | 687,067 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 13,461 | 14,214 | 15,120 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -8,602 | -8,824 | -7,682 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 14,785 | 10,670 | 8,639 |
Total assets | 881,436 | ' | ' | ' | 663,496 | ' | ' | ' | 881,436 | 663,496 | 792,177 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 9,872 | 29,301 | 8,368 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | -8,602 | -8,824 | -7,682 |
Operating segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,388,472 | 3,152,643 | 2,544,723 |
Operating segment | Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 14,319 | 15,055 | 15,949 |
Inter-segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | -858 | -841 | -829 |
Inter-segment | Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | -858 | -841 | -829 |
Contract Drilling | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,374,153 | 3,137,588 | 2,528,774 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,250 | 969,109 | 756,617 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 440,838 | 376,879 | 306,829 |
Total assets | 5,379,686 | ' | ' | ' | 5,049,970 | ' | ' | ' | 5,379,686 | 5,049,970 | 4,204,185 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 781,869 | 1,053,377 | 721,979 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,250 | 969,109 | 756,617 |
Contract Drilling | U.S. Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,785,449 | 2,678,475 | 2,100,508 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 932,591 | 906,968 | 691,615 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 391,072 | 332,723 | 264,127 |
Total assets | 4,743,644 | ' | ' | ' | 4,422,297 | ' | ' | ' | 4,743,644 | 4,422,297 | 3,719,387 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 726,206 | 991,966 | 694,249 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | 932,591 | 906,968 | 691,615 |
Contract Drilling | Offshore | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 221,863 | 189,086 | 201,417 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 53,064 | 41,775 | 45,291 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 13,766 | 13,455 | 14,684 |
Total assets | 149,128 | ' | ' | ' | 160,135 | ' | ' | ' | 149,128 | 160,135 | 151,656 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 4,470 | 8,547 | 7,092 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | 53,064 | 41,775 | 45,291 |
Contract Drilling | International Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 366,841 | 270,027 | 226,849 |
Segment Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 44,595 | 20,366 | 19,711 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 36,000 | 30,701 | 28,018 |
Total assets | 486,914 | ' | ' | ' | 467,538 | ' | ' | ' | 486,914 | 467,538 | 333,142 |
Additions to Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | 51,193 | 52,864 | 20,638 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | 44,595 | 20,366 | 19,711 |
Contract Drilling | Operating segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,374,153 | 3,137,588 | 2,528,774 |
Contract Drilling | Operating segment | U.S. Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,785,449 | 2,678,475 | 2,100,508 |
Contract Drilling | Operating segment | Offshore | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 221,863 | 189,086 | 201,417 |
Contract Drilling | Operating segment | International Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | $366,841 | $270,027 | $226,849 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $864,536 | $840,197 | $838,309 | $844,572 | $829,447 | $819,785 | $769,982 | $732,588 | $3,387,614 | $3,151,802 | $2,543,894 |
Long-Lived Assets | 4,676,103 | ' | ' | ' | 4,351,571 | ' | ' | ' | 4,676,103 | 4,351,571 | 3,677,070 |
Receivables | 621,420 | ' | ' | ' | 620,489 | ' | ' | ' | 621,420 | 620,489 | ' |
Operating revenues | Customer concentration | Customer one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.80% | 5.70% | 2.60% |
Operating revenues | Customer concentration | Customer two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.50% | 9.60% | 11.50% |
Receivables | Customer concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables | 101,600 | ' | ' | ' | 109,900 | ' | ' | ' | 101,600 | 109,900 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,011,760 | 2,864,570 | 2,276,118 |
Long-Lived Assets | 4,345,950 | ' | ' | ' | 4,039,770 | ' | ' | ' | 4,345,950 | 4,039,770 | 3,423,185 |
Colombia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 100,052 | 82,247 | 74,504 |
Long-Lived Assets | 81,315 | ' | ' | ' | 84,389 | ' | ' | ' | 81,315 | 84,389 | 67,369 |
Argentina | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 73,208 | 54,317 | 44,205 |
Long-Lived Assets | 83,149 | ' | ' | ' | 81,886 | ' | ' | ' | 83,149 | 81,886 | 78,221 |
Ecuador | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 67,890 | 56,448 | 42,598 |
Long-Lived Assets | 63,894 | ' | ' | ' | 38,265 | ' | ' | ' | 63,894 | 38,265 | 28,439 |
Other foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 134,704 | 94,220 | 106,469 |
Long-Lived Assets | $101,795 | ' | ' | ' | $107,261 | ' | ' | ' | $101,795 | $107,261 | $79,856 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $864,536,000 | $840,197,000 | $838,309,000 | $844,572,000 | $829,447,000 | $819,785,000 | $769,982,000 | $732,588,000 | $3,387,614,000 | $3,151,802,000 | $2,543,894,000 |
Operating income | 243,234,000 | 239,960,000 | 232,920,000 | 240,547,000 | 239,380,000 | 232,655,000 | 207,025,000 | 230,539,000 | 956,661,000 | 909,599,000 | 702,511,000 |
Income from continuing operations | 159,797,000 | 250,978,000 | 151,067,000 | 159,611,000 | 149,606,000 | 149,943,000 | 129,763,000 | 144,297,000 | 721,453,000 | 573,609,000 | 434,668,000 |
Net income | 159,797,000 | 266,159,000 | 151,080,000 | 159,603,000 | 157,115,000 | 149,925,000 | 129,719,000 | 144,286,000 | 736,639,000 | 581,045,000 | 434,186,000 |
Basic earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.49 | $2.35 | $1.41 | $1.50 | $1.41 | $1.40 | $1.20 | $1.34 | $6.75 | $5.35 | $4.06 |
Net income (in dollars per share) | $1.49 | $2.49 | $1.41 | $1.50 | $1.48 | $1.40 | $1.20 | $1.34 | $6.89 | $5.42 | $4.06 |
Diluted earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.47 | $2.32 | $1.39 | $1.48 | $1.39 | $1.38 | $1.18 | $1.32 | $6.65 | $5.27 | $3.99 |
Net income (in dollars per share) | $1.47 | $2.46 | $1.39 | $1.48 | $1.46 | $1.38 | $1.18 | $1.32 | $6.79 | $5.34 | $3.99 |
Gain from the sale of assets, net | 2,800,000 | 2,600,000 | 3,400,000 | 3,400,000 | 3,000,000 | 1,300,000 | 4,900,000 | 3,000,000 | ' | ' | ' |
Gain from the sale of assets, per diluted share (in dollars per share) | $0.03 | $0.02 | $0.03 | $0.03 | $0.03 | $0.01 | $0.05 | $0.03 | ' | ' | ' |
Gain on sale of investment securities | ' | $92,400,000 | ' | $5,500,000 | ' | ' | ' | ' | $162,121,000 | ' | $913,000 |
Gain from the sale of investment securities, per diluted share (in dollars per share) | ' | $0.86 | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' |