Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 11, 2016 | Mar. 31, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | Helmerich & Payne, Inc. | ||
Entity Central Index Key | 46,765 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 6.2 | ||
Entity Common Stock, Shares Outstanding | 108,177,217 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenues: | |||
Drilling - U.S. Land | $ 1,242,462 | $ 2,523,518 | $ 3,099,954 |
Drilling - Offshore | 138,601 | 241,666 | 251,341 |
Drilling - International Land | 229,894 | 382,331 | 351,263 |
Other | 13,275 | 14,187 | 13,410 |
Total operating revenues | 1,624,232 | 3,161,702 | 3,715,968 |
Operating costs and expenses | |||
Operating costs, excluding depreciation | 898,805 | 1,703,476 | 2,006,715 |
Depreciation | 598,587 | 608,039 | 523,984 |
Asset impairment charge | 6,250 | 39,242 | |
Research and development | 10,269 | 16,104 | 15,905 |
General and administrative | 146,183 | 134,712 | 135,273 |
Income from asset sales | (9,896) | (11,834) | (19,083) |
Total operating costs and expenses | 1,650,198 | 2,489,739 | 2,662,794 |
Operating income (loss) from continuing operations | (25,966) | 671,963 | 1,053,174 |
Other income (expense) | |||
Interest and dividend income | 3,166 | 5,840 | 1,543 |
Interest expense | (22,913) | (15,023) | (4,657) |
Gain (loss) on investment securities | (25,989) | 45,234 | |
Other | (965) | (901) | (636) |
Total other income (expense) | (46,701) | (10,084) | 41,484 |
Income (loss) from continuing operations before income taxes | (72,667) | 661,879 | 1,094,658 |
Income tax provision (benefit) | (19,677) | 241,405 | 388,048 |
Income (loss) from continuing operations | (52,990) | 420,474 | 706,610 |
Income (loss) from discontinued operations before income taxes | 2,360 | (124) | 2,758 |
Income tax provision (benefit) | 6,198 | (77) | 2,805 |
Loss from discontinued operations | (3,838) | (47) | (47) |
NET INCOME (LOSS) | $ (56,828) | $ 420,427 | $ 706,563 |
Basic earnings per common share: | |||
Income (loss) from continuing operations (in dollars per share) | $ (0.50) | $ 3.88 | $ 6.52 |
Loss from discontinued operations (in dollars per share) | (0.04) | ||
Net income (loss) (in dollars per share) | (0.54) | 3.88 | 6.52 |
Diluted earnings per common share: | |||
Income (loss) from continuing operations (in dollars per share) | (0.50) | 3.85 | 6.44 |
Loss from discontinued operations (in dollars per share) | (0.04) | ||
Net income (loss) (in dollars per share) | $ (0.54) | $ 3.85 | $ 6.44 |
Weighted average shares outstanding (in thousands): | |||
Basic (in shares) | 107,996 | 107,754 | 107,800 |
Diluted (in shares) | 107,996 | 108,570 | 109,141 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | $ (56,828) | $ 420,427 | $ 706,563 |
Other comprehensive income, net of income taxes: | |||||||||||
Unrealized appreciation (depreciation) on securities, net of income taxes of $1.7 million at September 30, 2016, ($50.6) million at September 30, 2015 and ($15.5) million at September 30, 2014 | 2,772 | (80,217) | (19,006) | ||||||||
Reclassification of realized (gains) losses in net income, net of income taxes of $0.6 million at September 30, 2016 and ($17.5) million at September 30, 2014 | 926 | (27,737) | |||||||||
Minimum pension liability adjustments, net of income taxes of $1.4 million at September 30, 2016, ($2.5) million at September 30, 2015 and ($1.5) million at September 30, 2014 | (2,525) | (4,286) | (2,661) | ||||||||
Other comprehensive income (loss) | 1,173 | (84,503) | (49,404) | ||||||||
Comprehensive income (loss) | $ (55,655) | $ 335,924 | $ 657,159 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Unrealized appreciation (depreciation) on securities, income taxes | $ 1.7 | $ (50.6) | $ (15.5) |
Reclassification of realized (gains) losses in net income, income taxes | 0.6 | (17.5) | |
Minimum pension liability adjustments, income taxes | $ 1.4 | $ (2.5) | $ (1.5) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 905,561 | $ 729,384 |
Short-term investments | 44,148 | 45,543 |
Accounts receivable, less reserve of $2,696 in 2016 and $6,181 in 2015 | 375,169 | 445,948 |
Inventories | 124,325 | 128,541 |
Deferred income taxes | 17,206 | |
Prepaid expenses and other | 78,067 | 64,475 |
Assets held for sale | 45,352 | |
Current assets of discontinued operations | 64 | 8,097 |
Total current assets | 1,572,686 | 1,439,194 |
INVESTMENTS | 84,955 | 104,354 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||
Contract drilling equipment | 7,881,544 | 7,985,362 |
Construction in progress | 98,313 | 95,518 |
Real estate properties | 62,929 | 65,466 |
Other | 444,843 | 457,802 |
PROPERTY, PLANT AND EQUIPMENT, gross | 8,487,629 | 8,604,148 |
Less-Accumulated depreciation | 3,342,896 | 3,040,978 |
Net property, plant and equipment | 5,144,733 | 5,563,170 |
NONCURRENT ASSETS: | ||
Other assets | 29,645 | 40,524 |
TOTAL ASSETS | 6,832,019 | 7,147,242 |
CURRENT LIABILITIES: | ||
Long-term debt due within one year | 39,094 | |
Accounts payable | 95,422 | 108,169 |
Accrued liabilities | 234,639 | 197,557 |
Current liabilities of discontinued operations | 59 | 3,377 |
Total current liabilities | 330,120 | 348,197 |
NONCURRENT LIABILITIES: | ||
Long-term debt | 491,847 | 492,443 |
Deferred income taxes | 1,342,456 | 1,295,916 |
Other | 102,781 | 110,120 |
Noncurrent liabilities of discontinued operations | 3,890 | 4,720 |
Total noncurrent liabilities | 1,940,974 | 1,903,199 |
SHAREHOLDERS' EQUITY: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 111,400,339 and 110,987,546 shares issued as of September 30, 2016 and 2015, respectively, and 108,077,916 and 107,767,915 shares outstanding as of September 30, 2016 and 2015, respectively | 11,140 | 11,099 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ||
Additional paid-in capital | 448,452 | 420,141 |
Retained earnings | 4,289,807 | 4,648,346 |
Accumulated other comprehensive loss | (204) | (1,377) |
Total shareholders' equity before treasury stock | 4,749,195 | 5,078,209 |
Less treasury stock, 3,322,423 shares in 2016 and 3,219,631 shares in 2015, at cost | (188,270) | (182,363) |
Total shareholders' equity | 4,560,925 | 4,895,846 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 6,832,019 | $ 7,147,242 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Consolidated Balance Sheets | ||
Accounts receivable, reserve (in dollars) | $ 2,696 | $ 6,181 |
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 | 111,400,339 | 110,987,546 |
Common stock, shares outstanding | 108,077,916 | 107,767,915 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 3,322,423 | 3,219,631 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated other comprehensive income (loss) | Treasury Stock | Total |
Balance at Sep. 30, 2013 | $ 10,874 | $ 288,758 | $ 4,105,011 | $ 132,530 | $ (91,098) | $ 4,446,075 |
Balance (in shares) at Sep. 30, 2013 | 108,739,000 | |||||
Balance (in shares) at Sep. 30, 2013 | 2,022,000 | |||||
Comprehensive Income: | ||||||
Net income (loss) | 706,563 | 706,563 | ||||
Other comprehensive income (loss) | (49,404) | (49,404) | ||||
Dividends declared ($2.625 per share in 2014,$2.75 per share in 2015 and $2.775 per share in 2016) | (285,585) | (285,585) | ||||
Exercise of stock options | $ 161 | 41,911 | $ (18,822) | 23,250 | ||
Exercise of stock options (in shares) | 1,613,000 | 216,000 | ||||
Tax benefit of stock-based awards | 26,616 | 26,616 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 16 | (16) | $ (3,049) | $ (3,049) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 157,000 | 38,000 | ||||
Repurchase of common stock (in shares) | 0 | |||||
Stock-based compensation | 26,703 | $ 26,703 | ||||
Balance at Sep. 30, 2014 | $ 11,051 | 383,972 | 4,525,989 | 83,126 | $ (112,969) | 4,891,169 |
Balance (in shares) at Sep. 30, 2014 | 110,509,000 | |||||
Balance (in shares) at Sep. 30, 2014 | 2,276,000 | |||||
Comprehensive Income: | ||||||
Net income (loss) | 420,427 | 420,427 | ||||
Other comprehensive income (loss) | (84,503) | (84,503) | ||||
Dividends declared ($2.625 per share in 2014,$2.75 per share in 2015 and $2.775 per share in 2016) | (298,070) | (298,070) | ||||
Exercise of stock options | $ 26 | 7,223 | $ (4,599) | 2,650 | ||
Exercise of stock options (in shares) | 255,000 | 64,000 | ||||
Tax benefit of stock-based awards | 3,772 | 3,772 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 22 | (21) | $ (5,141) | (5,140) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 223,000 | 70,000 | ||||
Repurchase of common stock | $ (59,654) | $ (59,654) | ||||
Repurchase of common stock (in shares) | 810,000 | 810,097 | ||||
Stock-based compensation | 25,195 | $ 25,195 | ||||
Balance at Sep. 30, 2015 | $ 11,099 | 420,141 | 4,648,346 | (1,377) | $ (182,363) | $ 4,895,846 |
Balance (in shares) at Sep. 30, 2015 | 110,987,000 | 110,987,546 | ||||
Balance (in shares) at Sep. 30, 2015 | 3,220,000 | 3,219,631 | ||||
Comprehensive Income: | ||||||
Net income (loss) | (56,828) | $ (56,828) | ||||
Other comprehensive income (loss) | 1,173 | 1,173 | ||||
Dividends declared ($2.625 per share in 2014,$2.75 per share in 2015 and $2.775 per share in 2016) | (301,711) | (301,711) | ||||
Exercise of stock options | $ 22 | 6,937 | $ (5,919) | 1,040 | ||
Exercise of stock options (in shares) | 220,000 | 99,000 | ||||
Tax benefit of stock-based awards | 934 | 934 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 19 | (3,943) | $ 12 | $ (3,912) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 193,000 | 3,000 | ||||
Repurchase of common stock (in shares) | 0 | |||||
Stock-based compensation | 24,383 | $ 24,383 | ||||
Balance at Sep. 30, 2016 | $ 11,140 | $ 448,452 | $ 4,289,807 | $ (204) | $ (188,270) | $ 4,560,925 |
Balance (in shares) at Sep. 30, 2016 | 111,400,000 | 111,400,339 | ||||
Balance (in shares) at Sep. 30, 2016 | 3,322,000 | 3,322,423 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements of Shareholders' Equity | |||
Dividends declared per common share (in dollars per share) | $ 2.775 | $ 2.75 | $ 2.625 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES: | |||
Net income (loss) | $ (56,828) | $ 420,427 | $ 706,563 |
Adjustment for loss from discontinued operations | 3,838 | 47 | 47 |
Income (loss) from continuing operations | (52,990) | 420,474 | 706,610 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 598,587 | 608,039 | 523,984 |
Asset impairment charge | 6,250 | 39,242 | |
Amortization of debt issuance costs | 1,168 | 749 | 400 |
Provision for (recovery of) bad debt | (2,013) | 6,034 | (200) |
Stock-based compensation | 24,383 | 25,195 | 26,703 |
Pension settlement charges | 4,964 | 2,873 | 1,376 |
(Gain) loss on investment securities | 25,989 | (45,234) | |
Income from asset sales | (9,896) | (11,834) | (19,083) |
Deferred income tax expense | 60,088 | 131,431 | 26,132 |
Other | 151 | (368) | 1 |
Change in assets and liabilities: | |||
Accounts receivable | 72,792 | 259,024 | (70,458) |
Inventories | 1,944 | (23,052) | (16,623) |
Prepaid expenses and other | (2,460) | (4,457) | (12,862) |
Accounts payable | (10,907) | (38,983) | (16,104) |
Accrued liabilities | 49,562 | (24,756) | 35,378 |
Deferred income taxes | 2,769 | 688 | (749) |
Other noncurrent liabilities | (16,831) | 38,322 | (10,142) |
Net cash provided by operating activities from continuing operations | 753,550 | 1,428,621 | 1,129,129 |
Net cash provided by (used in) operating activities from discontinued operations | 47 | (47) | (47) |
Net cash provided by operating activities | 753,597 | 1,428,574 | 1,129,082 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (257,169) | (1,131,445) | (951,536) |
Purchase of short-term investments | (57,276) | (45,607) | |
Proceeds from sale of short-term investments | 58,381 | ||
Proceeds from asset sales | 21,845 | 22,643 | 30,176 |
Proceeds from sale of investments | 49,205 | ||
Net cash used in investing activities | (234,219) | (1,154,409) | (872,155) |
FINANCING ACTIVITIES: | |||
Payments on long-term debt | (40,000) | (40,000) | (115,000) |
Proceeds from senior notes, net of discount | 497,125 | ||
Debt issuance costs | (1,111) | (5,474) | |
Proceeds on short-term debt | 1,002 | ||
Payments on short-term debt | (1,002) | ||
Repurchase of common stock | (59,654) | ||
Dividends paid | (300,152) | (298,367) | (264,386) |
Exercise of stock options, net of tax withholding | 1,040 | 2,650 | 23,250 |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,140) | (3,049) |
Excess tax benefit from stock-based compensation | 934 | 3,772 | 26,616 |
Net cash provided by (used in) financing activities | (343,201) | 94,912 | (332,569) |
Net increase (decrease) in cash and cash equivalents | 176,177 | 369,077 | (75,642) |
Cash and cash equivalents, beginning of period | 729,384 | 360,307 | 435,949 |
Cash and cash equivalents, end of period | $ 905,561 | $ 729,384 | $ 360,307 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
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. Prior to October 1, 2015, for financial reporting purposes, fiscal years of our foreign operations ended on August 31 to facilitate reporting of consolidated results, resulting in a one-month reporting lag when compared to the remainder of the Company. Starting October 1, 2015, the reporting year-end of these foreign operations was changed from August 31 to September 30. The previously existing one-month reporting lag was eliminated as it is no longer required to achieve a timely consolidation due to our investments in technology, ERP systems and personnel to enhance our financial statement close process. We believe this change is preferable because the financial information of all operating segments is now reported based on the same period-end, which improves overall financial reporting to investors by providing the most current information available. In accordance with Accounting Standards Codification ("ASC") 810-10-50-2, " A Change in the Difference Between Parent and Subsidiary Fiscal Year-Ends ," the elimination of this previously existing reporting lag is considered a voluntary change in accounting principle in accordance with ASC 250-10-50 " Change in Accounting Principle ." Voluntary changes in accounting principles are to be reported through retrospective application of the new principle to all prior financial statement periods presented. Accordingly, our financial statements for periods prior to fiscal 2016 have been changed to reflect the period-specific effects of applying this accounting principle. This change resulted in a cumulative effect of an accounting change of $2.3 million, net of income tax effect, to retained earnings as of October 1, 2013. Net loss from continuing operations for fiscal 2016 would have been approximately $1.4 million higher absent the accounting change. The impact of this change in accounting principle to eliminate the one-month lag for foreign subsidiaries is summarized below for significant items. Other accounts were minimally impacted. As Reported Adjustments After Year Ended September 30, 2015 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) Year Ended September 30, 2014 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) September 30, 2015 (in thousands) Total assets $ $ ) $ Total liabilities ) Total shareholders' equity ) BASIS OF PRESENTATION We classified our former Venezuelan operation 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 period presented. Foreign currency 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 is an aggregate foreign currency loss of $9.3 million in fiscal 2016, a transaction gain of $1.6 million in fiscal 2015 and a transaction loss of $0.4 million in fiscal 2014. 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, 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 In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes requiring all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, however, we elected to early adopt effective October 1, 2015 prospectively. As a result of the adoption, we will no longer have deferred income taxes as a current asset in our Consolidated Balance Sheet. Prior year balances were not retrospectively adjusted. 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 $29.6 million and $32.0 million at September 30, 2016 and 2015, 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, 2016, $2.0 million is from the initial capitalization of the captive company and management has elected to restrict an additional $27.6 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, 2016 2015 (in thousands) Prepaid expenses and other $ $ Other assets $ $ 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 weighted average cost 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 Operations includes abandonments of $39.3 million, $43.6 million and $23.0 million for fiscal 2016, 2015 and 2014, respectively. During fiscal 2016, we abandoned used drilling equipment removed from service. During 2015 and 2014, we decommissioned 23 idle rigs and 9 rigs, 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 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 2016, 2015 and 2014 was $2.8 million, $7.0 million and $7.7 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 an income approach using estimated discounted future cash flows or a market approach, 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. Long-lived assets that are held for sale are recorded at the lower of carrying value or the fair value less costs to sell. 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. Beginning in the first fiscal quarter of fiscal 2015 and continuing into fiscal 2016, domestic and international oil prices declined significantly. This decline in pricing resulted in lower demand for our drilling services. As a result, we performed an impairment evaluation of all our long-lived drilling assets in accordance with ASC 360, Property, Plant, and Equipment . In order to estimate our future undiscounted cash flows from the use and eventual disposal, we developed probability weighted cash flow projections for our rig fleets. The most significant assumptions used in our analysis are expected margin per day, utilization and expected value upon disposal. We believe the assumptions and estimates used in our impairment analysis, including the development of probability weighted cash flow projections, are reasonable and appropriate; however, different assumptions and estimates could materially impact the analysis and resulting conclusions in some cases. During fiscal 2016, we recorded an asset impairment charge in the U.S. Land segment of $6.3 million to reduce the carrying value in rig and rig related equipment classified as held for sale to their estimated fair values, based on expected sales prices. The rig equipment is from rigs that were decommissioned from service in prior fiscal years and written down to their estimated recoverable value at the time of decommissioning. During fiscal 2016, we began actively marketing the equipment. We believe the equipment will be disposed of in under a year. No additional impairments were identified for any other rigs or rig related equipment in our domestic, international or offshore fleets. During fiscal 2015, our valuation of long-lived assets resulted in $39.2 million of impairment charges to reduce the carrying value of seven SCR land rigs within our International Land segment to their estimated fair value of $20.6 million which was based on a discounted cash flow analysis. Our discounted cash flow analysis consisted of creating projected cash flows that a market participant would reasonably develop and then applying an appropriate risk adjusted rate. Six of these rigs along with other rig related assets have been classified as held for sale at September 30, 2016. We plan to sell these assets in their current condition and it is probable the sale will occur within one year. SELF-INSURANCE ACCRUALS We have accrued a liability for estimated worker's compensation and other casualty claims incurred based upon case reserves plus an estimate of loss development and incurred but not reported claims. The estimate is based upon historical trends. Insurance recoveries related to such liability are recorded when considered probable. 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 2016, 2015 and 2014 were $125.9 million, $302.2 million and $326.7 million, respectively. For contracts that are terminated by customers prior to the expirations of their fixed terms, contractual provisions customarily require early termination amounts to be paid to us. Revenues from early terminated contracts are recognized when all contractual requirements have been met. Early termination revenue for fiscal 2016, 2015 and 2014 was approximately $219.0 million, $222.3 million and $11.7 million, respectively. 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 Operations. Our rent revenues are as follows: Years Ended September 30, 2016 2015 2014 (in thousands) Minimum rents $ $ $ Overage and percentage rents $ $ $ At September 30, 2016, minimum future rental income to be received on noncancelable operating leases was as follows: Fiscal Year Amount (in thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leasehold improvement allowances are capitalized and amortized over the lease term. At September 30, 2016 and 2015, the cost and accumulated depreciation for real estate properties were as follows: September 30, 2016 2015 (in thousands) Real estate properties $ $ Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Operations. 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 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 stock-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 Operations. 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. COMPREHENSIVE INCOME OR LOSS Other comprehensive income or loss refers to revenues, expenses, gains, and losses that are included in comprehensive income or loss but excluded from net income or loss. We report the components of other comprehensive income or loss, net of tax, by their nature and disclose the tax effect allocated to each component in the Consolidated Statements of Comprehensive Income (Loss). NEW ACCOUNTING STANDARDS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes virtually all existing revenue recognition guidance. In May 2016, accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. This additional guidance does not change the core principle of the revenue recognition guidance issued by the FASB in May 2014. Rather, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The ASU provides for full retrospective, modified retrospective, or use of the cumulative effect method during the period of adoption. We have not yet determined which adoption method we will employ. In July 2015, the FASB extended the effective date of this standard to interim and annual periods beginning on or after December 15, 2017. We are currently evaluating the potential effects of the adoption of this update on our consolidated financial statements. In July 2015, the FASB issued ASU No 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This update simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions of ASU 2016-01 are effective for interim and annual periods starting after December 15, 2017. At adoption, a cumulative-effect adjustment to beginning retained earnings will be recorded. We will adopt this standard on October 1, 2018. Subsequent to adoption, changes in the fair value of our available-for-sale investments will be recognized in net income and the effect will be subject to stock market fluctuations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses . The ASU sets forth a "current expected credit loss" (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Sep. 30, 2016 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 2 DISCONTINUED OPERATIONS Current assets of discontinued operations consist of restricted cash to meet remaining current obligations within the country of Venezuela. Current and noncurrent liabilities consist of municipal and income taxes payable and social obligations due within the country in Venezuela. Expenses incurred for in-country obligations are reported as discontinued operations. In March 2016, the Venezuelan government implemented the previously announced plans for a new foreign currency exchange system. The implementation of this system resulted in a reported loss from discontinued operations of $3.8 million in fiscal 2016, all of which corresponds to the Company's former operations in Venezuela. |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2016 | |
DEBT | |
DEBT | NOTE 3 DEBT At September 30, 2016 and 2015, we had the following unsecured long-term debt outstanding at rates and maturities shown in the following table: Principal Unamortized Discount and September 30, September 30, September 30, September 30, (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2016 $ — $ $ — $ ) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Less long-term debt due within one year — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We had $40 million of senior unsecured fixed-rate notes outstanding that matured in July 2016. The final annual principal repayment of $40 million along with interest was paid with cash on hand in July 2016. On March 19, 2015, we issued $500 million of 4.65 percent 10-year unsecured senior notes. The net proceeds, after discount and issuance cost, have been or will be used for general corporate purposes, including capital expenditures associated with our rig construction program. Interest is payable semi-annually on March 15 and September 15. The debt discount is being amortized to interest expense using the effective interest method. The debt issuance costs are amortized straight-line over the stated life of the obligation, which approximates the effective interest method. On July 13, 2016, we terminated our previous $300 million unsecured revolving credit facility with no borrowings, and its $40.3 million of letters of credit were transferred to a new $300 million unsecured revolving credit facility which will mature on July 13, 2021. The new facility has $75 million available to use as letters of credit. The majority of any borrowings under the facility would accrue interest at a spread over the London Interbank Offered Rate (LIBOR). We 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 .30 percent per annum. Based on our debt to total capitalization on September 30, 2016, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively. There is one financial covenant in the facility which requires us to maintain a funded leverage ratio (as defined) of less than 50 percent. 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 including a limitation that priority debt (as defined in the agreement) may not exceed 17.5% of the net worth of the Company. As of September 30, 2016, there were no borrowings, but there were three letters of credit outstanding in the amount of $38.8 million. At September 30, 2016, we had $261.2 available to borrow under our $300 million unsecured credit facility. Subsequent to September 30, 2016, another letter of credit was issued for $1.5 million lowering the amount available to borrow to $259.7 million. In addition to the letters of credit mentioned in the preceding paragraph, at September 30, 2016, we had two letters of credit outstanding, totaling $12 million that were issued to support international operations. These additional letters of credit were issued separately from the $300 million credit facility discussed in the preceding paragraph and do not reduce the available borrowing capacity of that facility. The applicable agreements for all unsecured debt 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, 2016, we were in compliance with all debt covenants. At September 30, 2016, aggregate maturities of long-term debt are as follows (in thousands): Years ending September 30, 2017 $ — 2018 — 2019 — 2020 — 2021 — Thereafter $ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
INCOME TAXES | |
INCOME TAXES | NOTE 4 INCOME TAXES The components of the provision for income taxes are as follows: Years Ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ ) $ $ Foreign State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal Foreign ) ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The amounts of domestic and foreign income before income (loss) taxes are as follows: Years Ended September 30, 2016 2015 2014 (in thousands) Domestic $ ) $ $ Foreign ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2016 2015 (in thousands) Deferred tax liabilities: Property, plant and equipment $ $ Available-for-sale securities Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets: Pension reserves Self-insurance reserves Net operating loss and foreign tax credit carryforwards Financial accruals Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. As of September 30, 2016, we had state and foreign net operating loss carryforwards for income tax purposes of $11.6 million and $94.0 million, respectively, and foreign tax credit carryforwards of approximately $50.3 million (of which $39.3 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 2017 through 2024. The valuation allowance is primarily attributable to state and foreign net operating loss carryforwards of $1.0 million and $31.1 million, respectively, and foreign tax credit carryforwards of $39.3 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 2016 2015 2014 U.S. Federal income tax rate % % % Effect of foreign taxes ) ) State income taxes, net of federal tax benefit U.S. domestic production activities ) ) ) Other impact of foreign operations Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective income tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rates differ from the U.S. federal statutory rate of 35.0 percent primarily due to state and foreign income taxes and the tax benefit from the Internal Revenue Code Section 199 deduction for domestic production activities. The effective tax rate for the twelve months ended September 30, 2016 was significantly impacted by reduced earnings before taxes, in conjunction with a December 2015 tax law change which resulted in a reduction of the fiscal 2015 Internal Revenue Code Section 199 deduction for domestic production activities. We recognize accrued interest related to unrecognized tax benefits in interest expense, and penalties in other expense in the Consolidated Statements of Operations. As of September 30, 2016 and 2015, we had accrued interest and penalties of $6.8 million and $11.1 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits for the fiscal years ended September 30, 2016 and 2015 is as follows: September 30, 2016 2015 (in thousands) Unrecognized tax benefits at October 1, $ $ Gross decreases—tax positions in prior periods — ) Gross increases—tax positions in prior periods — Gross decreases—current period effect of tax positions ) ) Gross increases—current period effect of tax positions — Expiration of statute of limitations for assessments ) ) Settlements ) ) ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized tax benefits at September 30, $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2016 and September 30, 2015, our liability for unrecognized tax benefits includes $3.8 million and $2.9 million, respectively, of unrecognized tax benefits related to discontinued operations that, if recognized, would not affect the effective tax rate. The remaining 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 U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we do not expect the increases or decreases to have a material effect on our results of operations or financial position. 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 2012 through 2015, with exception of certain state jurisdictions currently under audit. Audits in foreign jurisdictions are generally complete through fiscal 2003. On September 13, 2013, the IRS issued final regulations providing guidance on the treatment of amounts paid to acquire, produce or improve tangible property and proposed regulations providing guidance on the dispositions of such property. The implementation date for these regulations is tax years beginning on or after January 1, 2014. The estimated effect of the regulations have been included in the fiscal year end 2015 and 2016 tax provision. The implementation of the regulations did not have a significant impact on the overall tax provision. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2016 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 5 SHAREHOLDERS' EQUITY 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 2015, we purchased 810,097 common shares at an aggregate cost of $59.7 million, which are held as treasury shares. We had no purchases of common shares in fiscal years 2016 and 2014. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Components of accumulated other comprehensive income (loss) were as follows: September 30, 2016 2015 2014 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ $ Unrealized actuarial loss ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ After-tax amounts: Unrealized appreciation on securities $ $ $ Unrealized actuarial loss ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended September 30, 2016: Unrealized Defined Total (in thousands) Balance September 30, 2015 $ $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income (loss) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive Income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance September 30, 2016 $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following provides detail about accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations during the years ended September 30, 2016 and 2015: Amount Affected line item in the Details about Accumulated Other 2016 2015 (in thousands) Other-than-temporary impairment of available-for-sale securities $ $ — Gain (loss) on investment securities ) — Income tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — Net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ Defined Benefit Pension Items $ ) $ ) General and administrative Amortization of net actuarial loss Income tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) Net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ Total reclassifications for the period $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2016 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 6 STOCK-BASED COMPENSATION On March 2, 2016, the Helmerich & Payne, Inc. 2016 Omnibus Incentive Plan (the "2016 Plan") was approved by our stockholders. The 2016 Plan, among other things, authorizes the Human Resources Committee of the Board to grant non-qualified stock options and restricted stock awards 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. Awards outstanding in the Helmerich & Payne, Inc. 2005 Long-Term Incentive Plan (the "2005 Plan") and the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan (the "2010 Plan") remain subject to the terms and conditions of those plans. As of November 30, 2015, there were 876,379 non-qualified stock options and 294,575 shares of restricted stock awards granted under the 2010 Plan during fiscal 2016. Effective March 2, 2016, no further common-stock based awards will be made under the 2010 Plan. A summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense in fiscal 2016, 2015 and 2014 is as follows: September 30, 2016 2015 2014 (in thousands) Compensation expense Stock options $ $ $ Restricted stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefits of tax deductions in excess of recognized compensation cost of $0.9 million, $3.8 million and $26.6 million are reported as a financing cash flow in the Consolidated Statements of Cash Flows for fiscal 2016, 2015 and 2014, 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. 2016 2015 2014 Risk-free interest rate % % % Expected stock volatility % % % Dividend yield % % % Expected term (in years) 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 $13.12, $16.39 and $29.44 per share for fiscal 2016, 2015 and 2014, respectively. The following summary reflects the stock option activity for our common stock and related information for fiscal 2016, 2015 and 2014 (shares in thousands): 2016 2015 2014 Options Weighted-Average Options Weighted-Average Options Weighted-Average Outstanding at October 1, $ $ $ Granted Exercised ) ) ) Forfeited/Expired ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding on September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable on September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares available to grant The following table summarizes information about stock options at September 30, 2016 (shares in thousands): Outstanding Stock Options Exercisable Stock Options Range of Exercise Prices Options Weighted-Average Weighted-Average Options Weighted-Average $21.065 to $38.015 $ $ $47.29 to $59.76 $ $ $68.83 to $79.67 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $21.065 to $79.67 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2016, the weighted-average remaining life of exercisable stock options was 4.3 years and the aggregate intrinsic value was $47.9 million with a weighted-average exercise price of $46.66 per share. The number of options vested or expected to vest at September 30, 2016 was 3,284,246 with an aggregate intrinsic value of $54.8 million and a weighted-average exercise price of $51.69 per share. As of September 30, 2016, the unrecognized compensation cost related to the stock options was $6.6 million. That cost is expected to be recognized over a weighted-average period of 2.7 years. The total intrinsic value of options exercised during fiscal 2016, 2015 and 2014 was $6.3 million, $10.7 million and $100.9 million, respectively. The grant date fair value of shares vested during fiscal 2016, 2015 and 2014 was $9.6 million, $8.1 million and $8.8 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, 2016, there was $19.2 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 2.1 years. A summary of the status of our restricted stock awards as of September 30, 2016, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2016, 2015 and 2014, is as follows (shares in thousands): 2016 2015 2014 Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at October 1, $ $ $ Granted Vested (1) ) ) ) Forfeited ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding on September 30, $ $ $ (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, 2016 | |
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, 2016 2015 2014 (in thousands) Numerator: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) Adjustment for basic earnings per share Earnings allocated to unvested shareholders ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator for basic earnings per share: From continuing operations ) From discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — Numerator for diluted earnings per share: From continuing operations ) From discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Denominator for basic earnings per share—weighted-average shares Effect of dilutive shares from stock options and restricted stock — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for diluted earnings per share—adjusted weighted-average shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per common share: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We had a net loss for fiscal 2016. Accordingly, our diluted earnings per share calculation for fiscal 2016 was equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. 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: 2016 2015 2014 (in thousands, except per Shares excluded from calculation of diluted earnings per share Weighted-average price per share $ $ $ |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2016 | |
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 assets held in a Non-qualified Supplemental Savings Plan: Cost Gross Gross Estimated (in thousands) Equity Securities: September 30, 2016 $ $ $ — $ September 30, 2015 $ $ $ $ On an ongoing basis we evaluate the marketable equity securities to determine if any 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. One of our securities was in an unrealized loss position for under 30 days at September 30, 2015 and then dropped below cost again in December 2015 and continued to be in a loss position through fiscal 2016. The security represents a company that is in the offshore drilling industry which has been severely impacted by the downturn in the energy sector. During the fourth quarter of fiscal 2016, we determined the loss was other-than-temporary. As a result, we recognized a $26.0 million other-than-temporary impairment charge. During fiscal 2016 and fiscal 2015, we did not sell any marketable equity available-for-sale securities. During fiscal 2014, marketable equity available-for-sale securities with a fair value at the date of sales of $49.2 million were sold. The gross realized gain on such sales of available-for-sale securities totaled $45.2 million. All of the gains from available-for-sale securities are included in gain from sale of investment securities in the Consolidated Statements of Operations. The assets held in a Non-qualified Supplemental Savings Plan are carried at fair value which totaled $13.4 million and $12.9 million at September 30, 2016 and 2015, respectively. The assets are comprised of mutual funds that are measured using Level 1 inputs. Short-term investments include securities classified as trading securities. Both realized and unrealized gains and losses on trading securities are included in other income (expense) in the Consolidated Statements of Operations. The securities are recorded at fair value. 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, 2016 and 2015. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: • Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. • Level 2—Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. At September 30, 2016, our financial instruments utilizing Level 1 inputs include cash equivalents, equity securities with active markets, 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 that we have elected to classify as restricted to be used to settle the remaining liabilities of discontinued operations. For these items, quoted current market prices are readily available. At September 30, 2016, Level 2 inputs include U.S. Agency issued debt securities and corporate bonds measured using broker quotations that utilize observable market inputs. Also included in level 2 inputs are bank certificate of deposits included in short-term investments or current assets. The following table summarizes our assets measured at fair value presented in our Consolidated Condensed Balance Sheet as of September 30, 2016: Total Quoted Prices Significant Significant (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ $ — $ $ — Corporate debt securities — — U.S. government and federal agency securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments — Cash and cash equivalents — — Investments — — Other current assets — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets measured at fair value $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonrecurring fair value measurements: Assets: Assets held for sale (1) $ $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the book value as of September 30, 2016 of decommissioned rigs and rig related equipment written down to their estimated recoverable amounts at September 30, 2016. These assets are included in assets held for sale in our Consolidated Balance Sheet at September 30, 2016. The following information presents the supplemental fair value information about long-term fixed-rate debt at September 30, 2016 and September 30, 2015. September 30, 2016 2015 (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ The fair value for the $500 million fixed-rate debt was based on broker quotes at September 30, 2016. The notes are classified within Level 2 as they are not actively traded in markets. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 and a statement of the funded status as of September 30, 2016 and 2015: 2016 2015 (in thousands) Accumulated Benefit Obligation $ $ Changes in projected benefit obligations Projected benefit obligation at beginning of year $ $ Interest cost Actuarial loss Benefits paid ) ) ​ ​ ​ ​ ​ ​ ​ ​ Projected benefit obligation at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets Fair value of plan assets at beginning of year $ $ Actual return on plan assets ) Employer contribution Benefits paid ) ) ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded status of the plan at end of year $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The amounts recognized in the Consolidated Balance Sheets at September 30, 2016 and 2015 are as follows (in thousands): Accrued liabilities $ ) $ ) Noncurrent liabilities—other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The amounts recognized in Accumulated Other Comprehensive Income at September 30, 2016 and 2015, and not yet reflected in net periodic benefit cost, are as follows (in thousands): Net actuarial loss $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 $2.3 million. The weighted average assumptions used for the pension calculations were as follows: Years Ended 2016 2015 2014 Discount rate for net periodic benefit costs % % % Discount rate for year-end obligations % % % Expected return on plan assets % % % The mortality table issued by the Society of Actuaries in October 2016 was used for the September 30, 2016 pension calculation. The new mortality information reflects improved life expectancies and projected mortality improvements. We did not make any contributions to the Pension Plan in fiscal 2016. In fiscal 2017, we do not expect minimum contributions required by law to be needed. However, we may make contributions in fiscal 2017 if needed to fund unexpected distributions in lieu of liquidating pension assets. Components of the net periodic pension expense (benefit) were as follows: Years Ended September 30, 2016 2015 2014 (in thousands) Interest cost $ $ $ Expected return on plan assets ) ) ) Recognized net actuarial loss Settlement ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net pension expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We record settlement expense when benefit payments exceed the total annual service and interest costs. 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, 2017 2018 2019 2020 2021 2022 - 2026 Total $13,976 $5,859 $6,013 $7,094 $5,674 $33,078 $71,694 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 Pension 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. Pension Plan assets are invested in portfolios of diversified public-market equity securities and fixed income securities. The Pension Plan does not directly hold securities of the Company. The expected long-term rate of return on Pension Plan assets is based on historical and projected rates of return for current and planned asset classes in the Pension Plan's investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes. The target allocation for 2017 and the asset allocation for the Pension Plan at the end of fiscal 2016 and 2015, by asset category, follows: Target Percentage Asset Category 2017 2016 2015 U.S. equities % % % International equities Fixed income Real estate and other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PLAN ASSETS The fair value of Pension Plan assets at September 30, 2016 and 2015, summarized by level within the fair value hierarchy described in Note 8, are as follows: Fair Value as of September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Short-term investments $ $ $ — $ — Mutual funds: Domestic stock funds — — Bond funds — — International stock funds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total mutual funds — — Domestic common stock — — Foreign equity stock — — Oil and gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of September 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Short-term investments $ $ $ — $ — Mutual funds: Domestic stock funds — — Bond funds — — International stock funds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total mutual funds — — Domestic common stock — — Foreign equity stock — — Oil and gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Pension 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 Pension 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 Pension Plan's Level 3 assets for the years ended September 30, 2016 and 2015: Oil and Gas Years Ended 2016 2015 (in thousands) Balance, beginning of year $ $ Unrealized gains (losses) relating to property still held at the reporting date ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEFINED CONTRIBUTION PLAN Substantially all employees on the United States payroll may elect to participate in our 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 $21.6 million, $24.8 million and $32.3 million in fiscal 2016, 2015 and 2014, respectively. During fiscal 2016, we determined that employee workforce reductions which started during 2015 and continued into 2016 due to reduced drilling activity resulted in a partial plan termination of the 401(k)/Thrift Plan. All affected participants were fully vested in their accounts. As a result of the partial plan termination status, we recorded additional employer contributions totaling $6.3 million in general and administrative expense. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
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 2016, 2015 and 2014: September 30, 2016 2015 2014 (in thousands) Reserve for bad debt: Balance at October 1, $ $ $ Provision for (recovery of) bad debt ) ) Write-off of bad debt ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable, prepaid expenses and other current assets, accrued liabilities and long-term liabilities at September 30 consist of the following: September 30, 2016 2015 (in thousands) Accounts receivable, net of reserve: Trade receivables $ $ Insurance recovery receivable — Income tax receivable — ​ ​ ​ ​ ​ ​ ​ ​ Total accounts receivable, net of reserve $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaid expenses and other current assets: Restricted cash $ $ Prepaid insurance Deferred mobilization Prepaid income taxes Prepaid value added tax Other ​ ​ ​ ​ ​ ​ ​ ​ Total prepaid expenses and other current assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued liabilities: Accrued operating costs $ $ Payroll and employee benefits Taxes payable, other than income tax Accrued income taxes — — Deferred mobilization Self-insurance liabilities Deferred income Litigation and claims — Other ​ ​ ​ ​ ​ ​ ​ ​ Total accrued liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noncurrent liabilities—Other: Pension and other non-qualified retirement plans $ $ Self-insurance liabilities Deferred mobilization Uncertain tax positions including interest and penalties Other ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities—other $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 11 SUPPLEMENTAL CASH FLOW INFORMATION Years Ended September 30, 2016 2015 2014 (in thousands) Cash payments: Interest paid, net of amounts capitalized $ $ $ Income taxes paid $ $ $ Capital expenditures on the Consolidated Statements of Cash Flows for the years ended September 30, 2016, 2015 and 2014 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, 2016 2015 2014 (in thousands) Capital expenditures incurred $ $ $ Additions incurred prior year but paid for in current year Additions incurred but not paid for as of the end of the year ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures per Consolidated Statements of Cash Flows $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
RISK FACTORS
RISK FACTORS | 12 Months Ended |
Sep. 30, 2016 | |
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. 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 with any degree of certainty. 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. Estimates from published sources indicate that Argentina is a highly inflationary country, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. Regardless, all of our foreign operations use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests and through entities (including joint ventures) in which we hold only a minority interest or pursuant to arrangements under which we conduct operations under contract to local entities. While we believe that neither operating through such entities nor pursuant to such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 COMMITMENTS AND CONTINGENCIES PURCHASE OBLIGATIONS Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At September 30, 2016, we had purchase commitments for equipment, parts and supplies of approximately $44.0 million. LEASES At September 30, 2016, we were leasing approximately 219,700 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, 2016 are as follows: Fiscal Year Amount (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total rent expense was $13.5 million, $13.6 million and $12.1 million for fiscal 2016, 2015 and 2014, 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. With the exception of the matters discussed below which are independently addressed herein, 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 and recognize income until realized. The 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. 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. We have been engaged in discussions with the Inspector General's office of the Department of the Interior regarding the same events that were the subject of the DOJ's investigation. We can provide no assurance as to the timing or eventual outcome of these discussions and are unable to determine the amount of penalty, if any, that may be assessed or the effect of any terms that may be required by an administrative agreement with the DOJ. However, we presently believe that the outcome of our discussions will not have a material adverse effect on us. On or about April 28, 2015, Joshua Keel ("Keel"), an employee of Helmerich & Payne International Drilling Co. ("HPIDC"), filed a petition in the 152 nd Judicial Court for Harris County, Texas (Cause No. 2015-24531) against us, our customer and several subcontractors of our customer. The suit arose from injuries Keel sustained in an accident that occurred while he was working on HPIDC Rig 223 in New Mexico in July of 2014. Keel alleged that the defendants were negligent and negligent per se , acted recklessly, intentionally, and/or with an utterly wanton disregard for the rights and safety of the plaintiff and was seeking damages well in excess of $100 million. Pursuant to the terms of the drilling contract between HPIDC and its customer, HPIDC indemnified most of the co-defendants in the lawsuit, subject to certain reservations. On September 14, 2016, the parties in the Keel litigation entered into a global settlement agreement, which was approved by the court on October 14, 2016. The total settlement amount of $72 million will be paid by the Company and its insurers on behalf of all defendants pursuant to industry standard contractual indemnification obligations. After taking into account amounts to be paid by the Company's various insurers, $18.8 million was recorded as an operating cost in our U.S. Land segment. At September 30, 2016, we have recorded in our Consolidated Balance Sheet a $72.0 million accrued liability and a $50.2 million accounts receivable from insurance recoveries. The settlement payment is due on or before December 24, 2016. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
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, Bahrain, U.A.E. and other South American and Middle Eastern 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, 2016, 2015 and 2014 is shown in the following table: (in thousands) External Inter- Total Segment Depreciation Total Additions 2016 Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2015, as adjusted Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014, as adjusted Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table reconciles segment operating income (loss) to income from continuing operations before income taxes as reported on the Consolidated Statements of Operations: Years Ended September 30, 2016 2015 2014 (in thousands) Segment operating income $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) Other income (expense) Interest and dividend income Interest expense ) ) ) Gain (loss) on investment securities ) — Other ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total unallocated amounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2016 2015 2014 (in thousands) Revenues United States $ $ $ Argentina Colombia Ecuador Other Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-Lived Assets United States $ $ $ Argentina Colombia Ecuador Other Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-lived assets are comprised of property, plant and equipment. Revenues from one customer accounted for approximately 11.9 percent, 10.1 percent and 10.7 percent of total operating revenues during the years ended September 30, 2016, 2015 and 2014, respectively. Revenues from another customer accounted for approximately 9.4 percent, 4.6 percent and 2.9 percent of total operating revenues during the years ended September 30, 2016, 2015 and 2014, respectively. Collectively, the receivables from these customers were approximately $49.5 million and $101.3 million at September 30, 2016 and 2015, respectively. |
GUARANTOR AND NON-GUARANTOR FIN
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | NOTE 15 GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION In March 2015, Helmerich & Payne International Drilling Co. ("the issuer"), a 100 percent owned subsidiary of Helmerich & Payne, Inc. ("parent", "the guarantor"), issued senior unsecured notes with an aggregate principal amount of $500.0 million. The notes are fully and unconditionally guaranteed by the parent. No subsidiaries of the parent currently guarantee the notes, subject to certain provisions that if any subsidiary guarantees certain other debt of the issuer or parent, then such subsidiary will provide a guarantee of the obligation under the notes. In connection with the notes, we are providing the following condensed consolidating financial information in accordance with the Securities and Exchange Commission disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co., and parent, guarantor, Helmerich & Payne, Inc. is shown in the tables below. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) ) ) Other expense, net ) ) ) ) ) Interest expense ) ) ) — ) Equity in net income (loss) of subsidiaries ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) ) ) Income tax provision (benefit) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) ) Income (loss) from discontinued operations before income taxes — — — Income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Net income (loss) $ ) $ ) $ ) $ $ ) Other comprehensive loss, net of income taxes: Unrealized (appreciation) depreciation on securities, net — — — Reclassification of realized losses in net income, net — — — Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF INCOME Year Ended September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) Income tax provision ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) Loss from discontinued operations before income taxes — — ) — ) Income tax benefit — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net income (loss) $ $ $ ) $ ) $ Other comprehensive loss, net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF INCOME Year Ended September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) Other income, net ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax provision ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations before income taxes — — — Income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Reclassification of realized gains in net income, net — ) — — ) Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Prepaid expenses and other ) Assets held for sale — — Current assets of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets Investment in subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ $ $ $ ) $ Accrued liabilities Current liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Noncurrent liabilities: Long-term debt — — — Deferred income taxes ) — Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities ) Shareholders' equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income (loss) ) — ) ) Treasury stock, at cost ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders' equity ) Total liabilities and shareholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Deferred income taxes — ) Prepaid expenses and other ) Current assets of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities ) Shareholders' equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive Income (loss) ) — ) ) Treasury stock, at cost ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders' equity ) Total liabilities and shareholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by (used in) operating activities $ $ $ ) $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Purchase of short-term investments — ) — — ) Proceeds from sale of short-term investments — — — Intercompany transfers ) — — — Proceeds from asset sales — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Debt issuance costs — ) — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, beginning of period ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by operating activities $ $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Purchase of short-term investments — ) — — ) Intercompany transfers ) — — — Proceeds from asset sales — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Proceeds from senior notes, net of discount — — — Debt issuance costs — ) — — ) Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Repurchase of common stock ) — — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) — Net increase in cash and cash equivalents — Cash and cash equivalents, beginning of period ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by (used in) operating activities $ ) $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Proceeds from sale of investments — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) — ) Net increase (decrease) in cash and cash equivalents ) ) — ) Cash and cash equivalents, beginning of period ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2016 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 16 SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share amounts) 2016 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Operating revenues $ $ $ $ Operating income (loss) ) ) Income (loss) from continuing operations ) ) Net income (loss) ) ) Basic earnings per common share: Income (loss) from continuing operations ) ) Net income (loss) ) ) Diluted earnings per common share: Income (loss) from continuing operations ) ) Net income (loss) ) ) 2015, as adjusted 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (1) Operating revenues $ $ $ $ Operating income (loss) ) Income (loss) from continuing operations ) Net income (loss) ) Basic earnings per common share: Income (loss) from continuing operations ) Net income (loss) ) Diluted earnings per common share: Income (loss) from continuing operations ) Net income (loss) ) (1) The fourth quarter of fiscal 2015 has been adjusted for the change in accounting principle to eliminate the one-month lag for foreign subsidiaries as described in Note 1 of these financial statements. The impact to the fourth quarter was an increase in net loss of $6.4 million and an increase in diluted loss per common share of $0.06. The impact to the first, second and third quarters of fiscal 2015 have been previously disclosed in our Form 10-Q filings during fiscal 2016. 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 2016, net income includes an after-tax gain from the sale of assets of $2.9 million, $0.03 per share on a diluted basis and an after-tax loss related to currency exchange losses of approximately $5.4 million, $0.05 per share on a diluted basis. In the second quarter of fiscal 2016, net income includes an after-tax gain from the sale of assets of $1.5 million, $0.01 per share on a diluted basis. In the third quarter of fiscal 2016, net loss includes an after-tax impairment charge, primarily related to used drilling equipment, of approximately $2.9 million, $0.03 per share on a diluted basis. In the fourth quarter of fiscal 2016, net loss includes an after-tax gain from the sale of assets of $1.4 million, $0.01 per share on a diluted basis. In the fourth quarter of fiscal 2016, net loss includes an after-tax loss from an other-than-temporary impairment of available-for-sale securities of $15.9 million, $0.15 loss per share on a diluted basis. In the fourth quarter of fiscal 2016, net loss includes an after-tax loss from a litigation settlement of $12.0 million, $0.11 loss per share on a diluted basis. In the first quarter of fiscal 2015, net income includes an after-tax gain from the sale of assets of $2.6 million, $0.02 per share on a diluted basis. In the second quarter of fiscal 2015, net income includes an after-tax gain from the sale of assets of $1.8 million, $0.02 per share on a diluted basis, and an after-tax abandonment charge, primarily related to the decommission of 17 SCR powered Flexrigs, of approximately $6.7 million, $0.06 per share on a diluted basis. In the third quarter of fiscal 2015, net income includes an after-tax gain from the sale of assets of $1.1 million, $0.01 per share on a diluted basis. In the fourth quarter of fiscal 2015, net income includes an after-tax gain from the sale of assets of $1.9 million, $0.02 per share on a diluted basis, as adjusted. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
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. Prior to October 1, 2015, for financial reporting purposes, fiscal years of our foreign operations ended on August 31 to facilitate reporting of consolidated results, resulting in a one-month reporting lag when compared to the remainder of the Company. Starting October 1, 2015, the reporting year-end of these foreign operations was changed from August 31 to September 30. The previously existing one-month reporting lag was eliminated as it is no longer required to achieve a timely consolidation due to our investments in technology, ERP systems and personnel to enhance our financial statement close process. We believe this change is preferable because the financial information of all operating segments is now reported based on the same period-end, which improves overall financial reporting to investors by providing the most current information available. In accordance with Accounting Standards Codification ("ASC") 810-10-50-2, " A Change in the Difference Between Parent and Subsidiary Fiscal Year-Ends ," the elimination of this previously existing reporting lag is considered a voluntary change in accounting principle in accordance with ASC 250-10-50 " Change in Accounting Principle ." Voluntary changes in accounting principles are to be reported through retrospective application of the new principle to all prior financial statement periods presented. Accordingly, our financial statements for periods prior to fiscal 2016 have been changed to reflect the period-specific effects of applying this accounting principle. This change resulted in a cumulative effect of an accounting change of $2.3 million, net of income tax effect, to retained earnings as of October 1, 2013. Net loss from continuing operations for fiscal 2016 would have been approximately $1.4 million higher absent the accounting change. The impact of this change in accounting principle to eliminate the one-month lag for foreign subsidiaries is summarized below for significant items. Other accounts were minimally impacted. As Reported Adjustments After Year Ended September 30, 2015 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) Year Ended September 30, 2014 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) September 30, 2015 (in thousands) Total assets $ $ ) $ Total liabilities ) Total shareholders' equity ) |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We classified our former Venezuelan operation 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 period presented. Foreign currency 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 is an aggregate foreign currency loss of $9.3 million in fiscal 2016, a transaction gain of $1.6 million in fiscal 2015 and a transaction loss of $0.4 million in fiscal 2014. |
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, 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 In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes requiring all deferred tax assets and liabilities be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, however, we elected to early adopt effective October 1, 2015 prospectively. As a result of the adoption, we will no longer have deferred income taxes as a current asset in our Consolidated Balance Sheet. Prior year balances were not retrospectively adjusted. |
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 $29.6 million and $32.0 million at September 30, 2016 and 2015, 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, 2016, $2.0 million is from the initial capitalization of the captive company and management has elected to restrict an additional $27.6 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, 2016 2015 (in thousands) Prepaid expenses and other $ $ Other assets $ $ |
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 weighted average cost 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 Operations includes abandonments of $39.3 million, $43.6 million and $23.0 million for fiscal 2016, 2015 and 2014, respectively. During fiscal 2016, we abandoned used drilling equipment removed from service. During 2015 and 2014, we decommissioned 23 idle rigs and 9 rigs, 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 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 2016, 2015 and 2014 was $2.8 million, $7.0 million and $7.7 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 an income approach using estimated discounted future cash flows or a market approach, 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. Long-lived assets that are held for sale are recorded at the lower of carrying value or the fair value less costs to sell. 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. Beginning in the first fiscal quarter of fiscal 2015 and continuing into fiscal 2016, domestic and international oil prices declined significantly. This decline in pricing resulted in lower demand for our drilling services. As a result, we performed an impairment evaluation of all our long-lived drilling assets in accordance with ASC 360, Property, Plant, and Equipment . In order to estimate our future undiscounted cash flows from the use and eventual disposal, we developed probability weighted cash flow projections for our rig fleets. The most significant assumptions used in our analysis are expected margin per day, utilization and expected value upon disposal. We believe the assumptions and estimates used in our impairment analysis, including the development of probability weighted cash flow projections, are reasonable and appropriate; however, different assumptions and estimates could materially impact the analysis and resulting conclusions in some cases. During fiscal 2016, we recorded an asset impairment charge in the U.S. Land segment of $6.3 million to reduce the carrying value in rig and rig related equipment classified as held for sale to their estimated fair values, based on expected sales prices. The rig equipment is from rigs that were decommissioned from service in prior fiscal years and written down to their estimated recoverable value at the time of decommissioning. During fiscal 2016, we began actively marketing the equipment. We believe the equipment will be disposed of in under a year. No additional impairments were identified for any other rigs or rig related equipment in our domestic, international or offshore fleets. During fiscal 2015, our valuation of long-lived assets resulted in $39.2 million of impairment charges to reduce the carrying value of seven SCR land rigs within our International Land segment to their estimated fair value of $20.6 million which was based on a discounted cash flow analysis. Our discounted cash flow analysis consisted of creating projected cash flows that a market participant would reasonably develop and then applying an appropriate risk adjusted rate. Six of these rigs along with other rig related assets have been classified as held for sale at September 30, 2016. We plan to sell these assets in their current condition and it is probable the sale will occur within one year. |
SELF INSURANCE ACCRUALS | SELF-INSURANCE ACCRUALS We have accrued a liability for estimated worker's compensation and other casualty claims incurred based upon case reserves plus an estimate of loss development and incurred but not reported claims. The estimate is based upon historical trends. Insurance recoveries related to such liability are recorded when considered probable. |
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 2016, 2015 and 2014 were $125.9 million, $302.2 million and $326.7 million, respectively. For contracts that are terminated by customers prior to the expirations of their fixed terms, contractual provisions customarily require early termination amounts to be paid to us. Revenues from early terminated contracts are recognized when all contractual requirements have been met. Early termination revenue for fiscal 2016, 2015 and 2014 was approximately $219.0 million, $222.3 million and $11.7 million, respectively. |
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 Operations. Our rent revenues are as follows: Years Ended September 30, 2016 2015 2014 (in thousands) Minimum rents $ $ $ Overage and percentage rents $ $ $ At September 30, 2016, minimum future rental income to be received on noncancelable operating leases was as follows: Fiscal Year Amount (in thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leasehold improvement allowances are capitalized and amortized over the lease term. At September 30, 2016 and 2015, the cost and accumulated depreciation for real estate properties were as follows: September 30, 2016 2015 (in thousands) Real estate properties $ $ Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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 Operations. |
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 Stock-based 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 stock-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 Operations. |
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. |
COMPREHENSIVE INCOME OR LOSS | COMPREHENSIVE INCOME OR LOSS Other comprehensive income or loss refers to revenues, expenses, gains, and losses that are included in comprehensive income or loss but excluded from net income or loss. We report the components of other comprehensive income or loss, net of tax, by their nature and disclose the tax effect allocated to each component in the Consolidated Statements of Comprehensive Income (Loss). |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes virtually all existing revenue recognition guidance. In May 2016, accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. This additional guidance does not change the core principle of the revenue recognition guidance issued by the FASB in May 2014. Rather, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The ASU provides for full retrospective, modified retrospective, or use of the cumulative effect method during the period of adoption. We have not yet determined which adoption method we will employ. In July 2015, the FASB extended the effective date of this standard to interim and annual periods beginning on or after December 15, 2017. We are currently evaluating the potential effects of the adoption of this update on our consolidated financial statements. In July 2015, the FASB issued ASU No 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This update simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions of ASU 2016-01 are effective for interim and annual periods starting after December 15, 2017. At adoption, a cumulative-effect adjustment to beginning retained earnings will be recorded. We will adopt this standard on October 1, 2018. Subsequent to adoption, changes in the fair value of our available-for-sale investments will be recognized in net income and the effect will be subject to stock market fluctuations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses . The ASU sets forth a "current expected credit loss" (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of restatement of financials from adoption of accounting principle change | As Reported Adjustments After Year Ended September 30, 2015 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) Year Ended September 30, 2014 (in thousands) Operating revenues $ $ ) $ Operating costs, excluding depreciation ) Net income ) Diluted earnings per common share ) September 30, 2015 (in thousands) Total assets $ $ ) $ Total liabilities ) Total shareholders' equity ) |
Schedule of the location of restricted cash and cash equivalents in the balance sheet | September 30, 2016 2015 (in thousands) Prepaid expenses and other $ $ Other assets $ $ |
Schedule of rent revenues | Years Ended September 30, 2016 2015 2014 (in thousands) Minimum rents $ $ $ Overage and percentage rents $ $ $ |
Schedule of future minimum rental income to be received on noncancelable operating leases | At September 30, 2016, minimum future rental income to be received on noncancelable operating leases was as follows: Fiscal Year Amount (in thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of cost and accumulated depreciation for real estate properties | September 30, 2016 2015 (in thousands) Real estate properties $ $ Accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
DEBT | |
Schedule of components of unsecured long-term debt outstanding | Principal Unamortized Discount and September 30, September 30, September 30, September 30, (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2016 $ — $ $ — $ ) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Less long-term debt due within one year — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of aggregate maturities of long-term debt | At September 30, 2016, aggregate maturities of long-term debt are as follows (in thousands): Years ending September 30, 2017 $ — 2018 — 2019 — 2020 — 2021 — Thereafter $ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
INCOME TAXES | |
Schedule of components of the provision for income taxes | Years Ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ ) $ $ Foreign State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal Foreign ) ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of domestic and foreign income before income (loss) taxes | Years Ended September 30, 2016 2015 2014 (in thousands) Domestic $ ) $ $ Foreign ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of net deferred tax liabilities | September 30, 2016 2015 (in thousands) Deferred tax liabilities: Property, plant and equipment $ $ Available-for-sale securities Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets: Pension reserves Self-insurance reserves Net operating loss and foreign tax credit carryforwards Financial accruals Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of effective income tax rates as compared to the U.S. Federal income tax rate | Years Ended 2016 2015 2014 U.S. Federal income tax rate % % % Effect of foreign taxes ) ) State income taxes, net of federal tax benefit U.S. domestic production activities ) ) ) Other impact of foreign operations Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective income tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of the change in the entity's gross unrecognized tax benefits | September 30, 2016 2015 (in thousands) Unrecognized tax benefits at October 1, $ $ Gross decreases—tax positions in prior periods — ) Gross increases—tax positions in prior periods — Gross decreases—current period effect of tax positions ) ) Gross increases—current period effect of tax positions — Expiration of statute of limitations for assessments ) ) Settlements ) ) ​ ​ ​ ​ ​ ​ ​ ​ Unrecognized tax benefits at September 30, $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SHAREHOLDERS' EQUITY | |
Schedule of components of accumulated other comprehensive income (loss) | September 30, 2016 2015 2014 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ $ Unrealized actuarial loss ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ After-tax amounts: Unrealized appreciation on securities $ $ $ Unrealized actuarial loss ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of the changes in accumulated other comprehensive income (loss), net of tax, by component | Unrealized Defined Total (in thousands) Balance September 30, 2015 $ $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income (loss) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive Income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance September 30, 2016 $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Operations | Amount Affected line item in the Details about Accumulated Other 2016 2015 (in thousands) Other-than-temporary impairment of available-for-sale securities $ $ — Gain (loss) on investment securities ) — Income tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — Net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ Defined Benefit Pension Items $ ) $ ) General and administrative Amortization of net actuarial loss Income tax provision ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ ) Net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ Total reclassifications for the period $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
STOCK-BASED COMPENSATION | |
Summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense | September 30, 2016 2015 2014 (in thousands) Compensation expense Stock options $ $ $ Restricted stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of weighted-average assumptions utilized in determining the fair value of options granted | 2016 2015 2014 Risk-free interest rate % % % Expected stock volatility % % % Dividend yield % % % Expected term (in years) |
Summary of stock option activity under all existing long-term incentive plans | The following summary reflects the stock option activity for our common stock and related information for fiscal 2016, 2015 and 2014 (shares in thousands): 2016 2015 2014 Options Weighted-Average Options Weighted-Average Options Weighted-Average Outstanding at October 1, $ $ $ Granted Exercised ) ) ) Forfeited/Expired ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding on September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable on September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares available to grant |
Summary of information about outstanding and exercisable stock options | The following table summarizes information about stock options at September 30, 2016 (shares in thousands): Outstanding Stock Options Exercisable Stock Options Range of Exercise Prices Options Weighted-Average Weighted-Average Options Weighted-Average $21.065 to $38.015 $ $ $47.29 to $59.76 $ $ $68.83 to $79.67 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $21.065 to $79.67 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2016, and of changes in restricted stock outstanding during the fiscal years ended September 30, 2016, 2015 and 2014, is as follows (shares in thousands): 2016 2015 2014 Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at October 1, $ $ $ Granted Vested (1) ) ) ) Forfeited ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding on September 30, $ $ $ (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, 2016 | |
EARNINGS PER SHARE | |
Schedule of computation of basic and diluted earnings per share | September 30, 2016 2015 2014 (in thousands) Numerator: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) Adjustment for basic earnings per share Earnings allocated to unvested shareholders ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator for basic earnings per share: From continuing operations ) From discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — Numerator for diluted earnings per share: From continuing operations ) From discontinued operations ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Denominator for basic earnings per share—weighted-average shares Effect of dilutive shares from stock options and restricted stock — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for diluted earnings per share—adjusted weighted-average shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per common share: Income (loss) from continuing operations $ ) $ $ Loss from discontinued operations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of shares attributable to outstanding equity awards excluded from the calculation of diluted earnings per share | 2016 2015 2014 (in thousands, except per Shares excluded from calculation of diluted earnings per share Weighted-average price per share $ $ $ |
FINANCIAL INSTRUMENTS AND FAI33
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT | |
Summary of available-for-sale securities | Cost Gross Gross Estimated (in thousands) Equity Securities: September 30, 2016 $ $ $ — $ September 30, 2015 $ $ $ $ |
Summary of assets measured at fair value on a recurring basis | The following table summarizes our assets measured at fair value presented in our Consolidated Condensed Balance Sheet as of September 30, 2016: Total Quoted Prices Significant Significant (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ $ — $ $ — Corporate debt securities — — U.S. government and federal agency securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments — Cash and cash equivalents — — Investments — — Other current assets — Other assets — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets measured at fair value $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonrecurring fair value measurements: Assets: Assets held for sale (1) $ $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the book value as of September 30, 2016 of decommissioned rigs and rig related equipment written down to their estimated recoverable amounts at September 30, 2016. These assets are included in assets held for sale in our Consolidated Balance Sheet at September 30, 2016. |
Summary of supplemental fair value information about long-term fixed-rate debt | September 30, 2016 2015 (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 | 2016 2015 (in thousands) Accumulated Benefit Obligation $ $ Changes in projected benefit obligations Projected benefit obligation at beginning of year $ $ Interest cost Actuarial loss Benefits paid ) ) ​ ​ ​ ​ ​ ​ ​ ​ Projected benefit obligation at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets Fair value of plan assets at beginning of year $ $ Actual return on plan assets ) Employer contribution Benefits paid ) ) ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded status of the plan at end of year $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of amounts recognized in the Consolidated Balance Sheets | The amounts recognized in the Consolidated Balance Sheets at September 30, 2016 and 2015 are as follows (in thousands): Accrued liabilities $ ) $ ) Noncurrent liabilities—other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net amount recognized $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2016 and 2015, and not yet reflected in net periodic benefit cost, are as follows (in thousands): Net actuarial loss $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of weighted average assumptions used for the pension calculations | Years Ended 2016 2015 2014 Discount rate for net periodic benefit costs % % % Discount rate for year-end obligations % % % Expected return on plan assets % % % |
Schedule of components of Net Periodic Benefit Cost | Years Ended September 30, 2016 2015 2014 (in thousands) Interest cost $ $ $ Expected return on plan assets ) ) ) Recognized net actuarial loss Settlement ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net pension expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2017 2018 2019 2020 2021 2022 - 2026 Total $13,976 $5,859 $6,013 $7,094 $5,674 $33,078 $71,694 |
Schedule of target allocation and the asset allocation for the Pension Plan | Target Percentage Asset Category 2017 2016 2015 U.S. equities % % % International equities Fixed income Real estate and other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of fair value of Pension Plan assets, summarized by level within fair value hierarchy | Fair Value as of September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Short-term investments $ $ $ — $ — Mutual funds: Domestic stock funds — — Bond funds — — International stock funds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total mutual funds — — Domestic common stock — — Foreign equity stock — — Oil and gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value as of September 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Short-term investments $ $ $ — $ — Mutual funds: Domestic stock funds — — Bond funds — — International stock funds — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total mutual funds — — Domestic common stock — — Foreign equity stock — — Oil and gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of changes in fair value of the Pension Plan's Level 3 assets | Oil and Gas Years Ended 2016 2015 (in thousands) Balance, beginning of year $ $ Unrealized gains (losses) relating to property still held at the reporting date ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, end of year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SUPPLEMENTAL BALANCE SHEET IN35
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | |
Schedule of supplemental balance sheet information, reflecting activity in the entity's reserve for bad debt | September 30, 2016 2015 2014 (in thousands) Reserve for bad debt: Balance at October 1, $ $ $ Provision for (recovery of) bad debt ) ) Write-off of bad debt ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of supplemental balance sheet information, Accounts receivable, prepaid expenses and other current assets, accrued liabilities and long-term liabilities | September 30, 2016 2015 (in thousands) Accounts receivable, net of reserve: Trade receivables $ $ Insurance recovery receivable — Income tax receivable — ​ ​ ​ ​ ​ ​ ​ ​ Total accounts receivable, net of reserve $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaid expenses and other current assets: Restricted cash $ $ Prepaid insurance Deferred mobilization Prepaid income taxes Prepaid value added tax Other ​ ​ ​ ​ ​ ​ ​ ​ Total prepaid expenses and other current assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued liabilities: Accrued operating costs $ $ Payroll and employee benefits Taxes payable, other than income tax Accrued income taxes — — Deferred mobilization Self-insurance liabilities Deferred income Litigation and claims — Other ​ ​ ​ ​ ​ ​ ​ ​ Total accrued liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noncurrent liabilities—Other: Pension and other non-qualified retirement plans $ $ Self-insurance liabilities Deferred mobilization Uncertain tax positions including interest and penalties Other ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities—other $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SUPPLEMENTAL CASH FLOW INFORM36
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of supplemental cash flow information | Years Ended September 30, 2016 2015 2014 (in thousands) Cash payments: Interest paid, net of amounts capitalized $ $ $ Income taxes paid $ $ $ |
Schedule of reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | September 30, 2016 2015 2014 (in thousands) Capital expenditures incurred $ $ $ Additions incurred prior year but paid for in current year Additions incurred but not paid for as of the end of the year ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures per Consolidated Statements of Cash Flows $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 are as follows: Fiscal Year Amount (in thousands) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SEGMENT INFORMATION | |
Summary of financial information of the entity's reportable segments for continuing operations | (in thousands) External Inter- Total Segment Depreciation Total Additions 2016 Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2015, as adjusted Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014, as adjusted Contract Drilling U.S. Land $ $ — $ $ $ $ $ Offshore — International Land — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eliminations — ) ) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of segment operating income to income from continuing operations before income taxes | Years Ended September 30, 2016 2015 2014 (in thousands) Segment operating income $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) Other income (expense) Interest and dividend income Interest expense ) ) ) Gain (loss) on investment securities ) — Other ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total unallocated amounts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of revenues from external customers by country based on the location of service provided | Years Ended September 30, 2016 2015 2014 (in thousands) Revenues United States $ $ $ Argentina Colombia Ecuador Other Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-Lived Assets United States $ $ $ Argentina Colombia Ecuador Other Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
GUARANTOR AND NON-GUARANTOR F39
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | |
Schedule of Consolidated Condensed Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Year Ended September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) ) ) Other expense, net ) ) ) ) ) Interest expense ) ) ) — ) Equity in net income (loss) of subsidiaries ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) ) ) Income tax provision (benefit) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) ) ) Income (loss) from discontinued operations before income taxes — — — Income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF INCOME Year Ended September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) ) Other income (expense), net ) ) Interest expense ) ) ) — ) Equity in net income of subsidiaries ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations before income taxes ) ) Income tax provision ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations ) ) Loss from discontinued operations before income taxes — — ) — ) Income tax benefit — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF INCOME Year Ended September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Operating revenue $ — $ $ $ ) $ Operating costs and other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) from continuing operations ) Other income, net ) Interest expense ) ) ) — ) Equity in net income of subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations before income taxes ) Income tax provision ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ) Income from discontinued operations before income taxes — — — Income tax provision — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss from discontinued operations — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Consolidated Condensed Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Net income (loss) $ ) $ ) $ ) $ $ ) Other comprehensive loss, net of income taxes: Unrealized (appreciation) depreciation on securities, net — — — Reclassification of realized losses in net income, net — — — Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net income (loss) $ $ $ ) $ ) $ Other comprehensive loss, net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income (loss) $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Reclassification of realized gains in net income, net — ) — — ) Minimum pension liability adjustments, net ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) ) ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Consolidated Condensed Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Prepaid expenses and other ) Assets held for sale — — Current assets of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets Investment in subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ $ $ $ ) $ Accrued liabilities Current liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities Noncurrent liabilities: Long-term debt — — — Deferred income taxes ) — Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities ) Shareholders' equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income (loss) ) — ) ) Treasury stock, at cost ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders' equity ) Total liabilities and shareholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ — $ Short-term investments — — — Accounts receivable, net of reserve ) Inventories — — Deferred income taxes — ) Prepaid expenses and other ) Current assets of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Investments — — Property, plant and equipment, net — Intercompany ) — Other assets ) Investment in subsidiaries — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Long-term debt due within one year $ — $ $ — $ — $ Accounts payable ) Accrued liabilities ) Current liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Noncurrent liabilities: Long-term debt — — — Deferred income taxes — ) Intercompany ) — Other — Noncurrent liabilities of discontinued operations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent liabilities ) Shareholders' equity: Common stock — ) Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive Income (loss) ) — ) ) Treasury stock, at cost ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders' equity ) Total liabilities and shareholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Consolidated Condensed Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS September 30, 2016 Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by (used in) operating activities $ $ $ ) $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Purchase of short-term investments — ) — — ) Proceeds from sale of short-term investments — — — Intercompany transfers ) — — — Proceeds from asset sales — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Debt issuance costs — ) — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) — ) Net increase (decrease) in cash and cash equivalents ) ) — Cash and cash equivalents, beginning of period ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) September 30, 2015, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by operating activities $ $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Purchase of short-term investments — ) — — ) Intercompany transfers ) — — — Proceeds from asset sales — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Proceeds from senior notes, net of discount — — — Debt issuance costs — ) — — ) Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Repurchase of common stock ) — — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) — Net increase in cash and cash equivalents — Cash and cash equivalents, beginning of period ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Eliminations Total Net cash provided by (used in) operating activities $ ) $ $ $ — $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Proceeds from sale of investments — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Payments on long-term debt — ) — — ) Intercompany transfers ) — — — Dividends paid ) — — — ) Exercise of stock options, net of tax withholding — — — Tax withholdings related to net share settlements of restricted stock ) — — — ) Excess tax benefit from stock-based compensation ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) — ) Net increase (decrease) in cash and cash equivalents ) ) — ) Cash and cash equivalents, beginning of period ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SELECTED QUARTERLY FINANCIAL 40
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of selected quarterly financial data (unaudited) | (in thousands, except per share amounts) 2016 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Operating revenues $ $ $ $ Operating income (loss) ) ) Income (loss) from continuing operations ) ) Net income (loss) ) ) Basic earnings per common share: Income (loss) from continuing operations ) ) Net income (loss) ) ) Diluted earnings per common share: Income (loss) from continuing operations ) ) Net income (loss) ) ) 2015, as adjusted 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter (1) Operating revenues $ $ $ $ Operating income (loss) ) Income (loss) from continuing operations ) Net income (loss) ) Basic earnings per common share: Income (loss) from continuing operations ) Net income (loss) ) Diluted earnings per common share: Income (loss) from continuing operations ) Net income (loss) ) (1) The fourth quarter of fiscal 2015 has been adjusted for the change in accounting principle to eliminate the one-month lag for foreign subsidiaries as described in Note 1 of these financial statements. The impact to the fourth quarter was an increase in net loss of $6.4 million and an increase in diluted loss per common share of $0.06. The impact to the first, second and third quarters of fiscal 2015 have been previously disclosed in our Form 10-Q filings during fiscal 2016. |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2013 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
FOREIGN CURRENCIES | |||||||||||||
Foreign currency gains (losses) | $ (9,300) | $ 1,600 | $ (400) | ||||||||||
Impact change in accounting principle | |||||||||||||
Cumulative effect of an accounting change to retained earnings net of income tax | $ 2,300 | ||||||||||||
Net income (loss) from continuing operations | $ (72,869) | $ (21,193) | $ 25,174 | $ 15,898 | $ (27,590) | $ 90,899 | $ 153,542 | $ 203,623 | (52,990) | 420,474 | 706,610 | ||
Operating revenues | 331,708 | 366,486 | 438,191 | 487,847 | 553,800 | 661,445 | 885,670 | 1,060,787 | 1,624,232 | 3,161,702 | 3,715,968 | ||
Operating costs, excluding depreciation | 898,805 | 1,703,476 | 2,006,715 | ||||||||||
Net income (loss) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | $ (56,828) | $ 420,427 | $ 706,563 | ||
Diluted earnings per common share (in dollars per share) | $ (0.68) | $ (0.20) | $ 0.19 | $ 0.15 | $ (0.26) | $ 0.83 | $ 1.41 | $ 1.86 | $ (0.54) | $ 3.85 | $ 6.44 | ||
Total assets | $ 6,832,019 | $ 7,147,242 | $ 6,832,019 | $ 7,147,242 | |||||||||
Total liabilities | 2,251,396 | 2,251,396 | |||||||||||
Total shareholders' equity | $ 4,560,925 | 4,895,846 | 4,560,925 | 4,895,846 | $ 4,891,169 | $ 4,446,075 | |||||||
Previous Accounting Guidance | |||||||||||||
Impact change in accounting principle | |||||||||||||
Net income (loss) from continuing operations | $ (1,400) | ||||||||||||
As Reported | |||||||||||||
Impact change in accounting principle | |||||||||||||
Operating revenues | 3,165,441 | 3,719,707 | |||||||||||
Operating costs, excluding depreciation | 1,704,163 | 2,009,912 | |||||||||||
Net income (loss) | $ 422,225 | $ 708,719 | |||||||||||
Diluted earnings per common share (in dollars per share) | $ 3.87 | $ 6.46 | |||||||||||
Total assets | 7,152,012 | $ 7,152,012 | |||||||||||
Total liabilities | 2,254,560 | 2,254,560 | |||||||||||
Total shareholders' equity | 4,897,452 | 4,897,452 | |||||||||||
Adjustments | |||||||||||||
Impact change in accounting principle | |||||||||||||
Operating revenues | (3,739) | $ (3,739) | |||||||||||
Operating costs, excluding depreciation | (687) | (3,197) | |||||||||||
Net income (loss) | $ (1,798) | $ (2,156) | |||||||||||
Diluted earnings per common share (in dollars per share) | $ (0.02) | $ (0.02) | |||||||||||
Total assets | (4,770) | $ (4,770) | |||||||||||
Total liabilities | (3,164) | (3,164) | |||||||||||
Total shareholders' equity | $ (1,606) | $ (1,606) |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Addt. (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($)item | |
PROPERTY, PLANT AND EQUIPMENT | |||
Depreciation associated with abandonments | $ 39,300 | $ 43,600 | $ 23,000 |
Number of idle conventional rigs decommissioned | item | 23 | 9 | |
Asset impairment charge | 6,250 | $ 39,242 | |
RESTRICTED CASH AND CASH EQUIVALENTS | |||
Restricted cash and cash equivalents | 29,600 | 32,000 | |
Restricted cash and cash equivalents from initial capitalization of captive company | 2,000 | ||
Additional cash and cash equivalents restricted at the election of management for potential insurance claims | 27,600 | ||
Prepaid expenses and other | 27,631 | 29,998 | |
Other assets | 2,000 | 2,000 | |
CAPITALIZATION OF INTEREST | |||
Capitalized interest | 2,800 | 7,000 | $ 7,700 |
DRILLING REVENUES | |||
Reimbursements received | 125,900 | 302,200 | 326,700 |
Early termination revenue | 219,000 | 222,300 | 11,700 |
RENT REVENUES | |||
Minimum rents | 9,196 | 9,608 | 9,400 |
Overage and percentage rents | 1,211 | 1,030 | $ 1,090 |
Fiscal Year | |||
2,016 | 7,763 | ||
2,017 | 6,076 | ||
2,018 | 4,594 | ||
2,019 | 4,007 | ||
2,020 | 2,379 | ||
Thereafter | 4,642 | ||
Total | 29,461 | ||
Cost and accumulated depreciation for real estate properties | |||
Real estate properties | 62,929 | 65,466 | |
Accumulated depreciation | (40,777) | (43,326) | |
Real estate properties, Net | 22,152 | $ 22,140 | |
U.S. Land | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Asset impairment charge | $ 6,300 | ||
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 | ||
Land Rigs | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Asset impairment charge | $ 0 | ||
Land Rigs | International Land | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Number of impaired land rigs | item | 7 | ||
Land Rigs | International Land | Assets held for sale | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Number of impaired land rigs | item | 6 | ||
Land Rigs | International Land | Discounted cash flow | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Fair value of land rigs | $ 20,600 | ||
Other assets | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 2 years | ||
Other assets | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Estimated useful lives | 23 years |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loss from discontinued operations | $ (3,838) | $ (47) | $ (47) |
Venezuela | |||
Loss from discontinued operations | $ 3,800 |
DEBT (Details)
DEBT (Details) | Jul. 13, 2016USD ($)item | Mar. 19, 2015USD ($) | Sep. 30, 2016USD ($)letter | Sep. 30, 2015USD ($) | Oct. 01, 2016USD ($) |
Debt | |||||
Unsecured long-term debt | $ 500,000,000 | $ 540,000,000 | |||
Long-term debt due within one year | 40,000,000 | ||||
Long-term debt | 500,000,000 | 500,000,000 | |||
Unamortized discount and debt issuance costs | (8,153,000) | (8,463,000) | |||
Less unamortized debt issuance costs | (906,000) | ||||
Unamortized discount and debt issuance costs, noncurrent | $ (8,153,000) | (7,557,000) | |||
Issued to support international operations | |||||
Debt | |||||
Number of letters of credit outstanding | letter | 2 | ||||
Letters of credit outstanding/issued | $ 12,000,000 | ||||
Unsecured revolving credit facility mature May 25, 2017 | |||||
Debt | |||||
Terminated credit facility | $ 300,000,000 | ||||
Borrowing amount outstanding | 0 | ||||
Unsecured revolving credit facility mature May 25, 2017 | Letter of credit | |||||
Debt | |||||
Letters of credit outstanding/issued | 40,300,000 | ||||
Unsecured revolving credit facility mature on July 13, 2021 | |||||
Debt | |||||
Borrowing amount | $ 300,000,000 | 300,000,000 | |||
Borrowing amount outstanding | $ 0 | ||||
Commitment fee (as a percent) | 0.15% | ||||
Maximum limit of priority debt on net worth | 17.50% | ||||
Financial covenants | item | 1 | ||||
Letters of credit outstanding/issued | $ 1,500,000 | ||||
Available borrowing capacity excluding letters of credit transaction | $ 261,200,000 | $ 259,700,000 | |||
Unsecured revolving credit facility mature on July 13, 2021 | Maximum | |||||
Debt | |||||
Funded leverage ratio (as a percent) | 50.00% | ||||
Commitment fee (as a percent) | 0.30% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | Minimum | |||||
Debt | |||||
Commitment fee (as a percent) | 0.15% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | |||||
Debt | |||||
Interest spread on borrowings (as a percent) | 1.125% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt | |||||
Interest spread on borrowings (as a percent) | 1.75% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt | |||||
Interest spread on borrowings (as a percent) | 1.125% | ||||
Unsecured revolving credit facility mature on July 13, 2021 | Letter of credit | |||||
Debt | |||||
Available borrowing capacity to use for letters of credit | $ 75,000,000 | ||||
Number of letters of credit outstanding | letter | 3 | ||||
Letters of credit outstanding/issued | $ 38,800,000 | ||||
Unsecured senior notes issued July 21, 2009 | |||||
Debt | |||||
Unsecured long-term debt | 40,000,000 | ||||
Annual principal repayments | 40,000,000 | ||||
Due July 21, 2016 | |||||
Debt | |||||
Unsecured long-term debt | 40,000,000 | ||||
Unamortized discount and debt issuance costs | (498,000) | ||||
Unsecured senior notes issued March 19, 2015 | |||||
Debt | |||||
Unsecured long-term debt | 500,000,000 | 500,000,000 | |||
Unamortized discount and debt issuance costs | (8,153,000) | $ (7,965,000) | |||
Debt issued | $ 500,000,000 | $ 500,000,000 | |||
Long-term debt stated interest rate percentage | 4.65% | ||||
Term of debt | 10 years |
DEBT - Maturities of long-term
DEBT - Maturities of long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Aggregate maturities of long-term debt | ||
Thereafter | $ 500,000 | |
Fixed-rate debt | $ 500,000 | $ 540,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards | |||
Amount of foreign tax credit carryforwards for income tax purposes | $ 50,300 | ||
Deferred tax asset prior to consideration of valuation allowance | 39,300 | ||
Current: | |||
Federal | (86,010) | $ 84,229 | $ 323,386 |
Foreign | 9,987 | 14,864 | 17,333 |
State | (3,742) | 10,881 | 21,197 |
Total current | (79,765) | 109,974 | 361,916 |
Deferred: | |||
Federal | 58,136 | 165,491 | 28,183 |
Foreign | 408 | (34,410) | (4,257) |
State | 1,544 | 350 | 2,206 |
Total deferred | 60,088 | 131,431 | 26,132 |
Total provision | (19,677) | 241,405 | 388,048 |
Amounts of domestic and foreign income before income taxes | |||
Domestic | (49,636) | 675,425 | 1,061,019 |
Foreign | (23,031) | (13,546) | 33,639 |
Income (loss) from continuing operations before income taxes | (72,667) | 661,879 | $ 1,094,658 |
Deferred tax liabilities: | |||
Property, plant and equipment | 1,411,139 | 1,335,680 | |
Available-for-sale securities | 25,470 | 33,187 | |
Other | 2,326 | 3,929 | |
Total deferred tax liabilities | 1,438,935 | 1,372,796 | |
Deferred tax assets: | |||
Pension reserves | 8,330 | 3,405 | |
Self-insurance reserves | 15,282 | 14,317 | |
Net operating loss and foreign tax credit carryforwards | 71,778 | 56,494 | |
Financial accruals | 67,594 | 63,558 | |
Other | 4,952 | 12,283 | |
Total deferred tax assets | 167,936 | 150,057 | |
Valuation allowance | (71,457) | (55,971) | |
Net deferred tax assets | 96,479 | 94,086 | |
Net deferred tax liabilities | $ 1,342,456 | $ 1,278,710 | |
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) | (13.80%) | (3.20%) | 1.30% |
State income taxes, net of federal tax benefit (as a percent) | 3.20% | 0.80% | 1.40% |
U.S. domestic production activities (as a percent) | 10.40% | 1.20% | 2.60% |
Other impact of foreign operations | 14.70% | 4.50% | 0.60% |
Other (as a percent) | (1.60%) | 0.60% | (0.20%) |
Effective income tax rate (as a percent) | 27.10% | 36.50% | 35.50% |
Accrued interest and penalties related to unrecognized tax benefits | $ 6,800 | $ 11,100 | |
Reconciliation of the change in gross unrecognized tax benefits | |||
Unrecognized tax benefits at the beginning of the period | 11,211 | 11,211 | $ 10,747 |
Gross decreases - tax positions in prior periods | (706) | ||
Gross increases - tax positions in prior periods | 3,278 | ||
Gross decreases - current period effect of tax positions | (1,173) | (821) | |
Gross increases - current period effect of tax positions | 969 | ||
Expiration of statute of limitations for assessments | (679) | (956) | |
Settlements | (777) | (331) | |
Unrecognized tax benefits at the end of the period | 9,551 | 11,211 | $ 11,211 |
Unrecognized tax benefits related to discontinued operations | 3,800 | $ 2,900 | |
State and Local jurisdiction | |||
Operating Loss Carryforwards | |||
Amount of net operating loss carryforwards for income tax purposes | 11,600 | ||
Net operating loss carryforward, valuation allowance | 1,000 | ||
Foreign jurisdiction | |||
Operating Loss Carryforwards | |||
Amount of net operating loss carryforwards for income tax purposes | 94,000 | ||
Net operating loss carryforward, valuation allowance | 31,100 | ||
Foreign tax carryforwards which more likely than not will not be utilized | $ 39,300 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Repurchase of common stock (in shares) | 0 | 810,097 | 0 |
Aggregate cost of treasury shares purchase | $ 59,654 | ||
Maximum | |||
Number of common shares authorized to be repurchased | 4,000,000 |
SHAREHOLDERS' EQUITY - AOCI Com
SHAREHOLDERS' EQUITY - AOCI Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | $ (1,061) | $ (3,123) | $ 134,433 |
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Balance | 4,895,846 | 4,891,169 | 4,446,075 |
Balance | 4,560,925 | 4,895,846 | 4,891,169 |
Accumulated other comprehensive income (loss) | |||
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Balance | (1,377) | 83,126 | 132,530 |
Other comprehensive income before reclassifications | 2,772 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,599) | (4,286) | |
Net current-period other comprehensive Income (loss) | 1,173 | ||
Balance | (204) | (1,377) | 83,126 |
Unrealized appreciation (depreciation) on securities | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | 33,051 | 27,021 | 157,838 |
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Balance | 17,201 | 97,418 | |
Other comprehensive income before reclassifications | 2,772 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 926 | ||
Net current-period other comprehensive Income (loss) | 3,698 | ||
Balance | 20,899 | 17,201 | 97,418 |
Defined benefit pension plan | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | (34,112) | (30,144) | (23,405) |
Rollforward of accumulated other comprehensive income (loss), net of tax | |||
Balance | (18,578) | (14,292) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,525) | (4,286) | |
Net current-period other comprehensive Income (loss) | (2,525) | ||
Balance | $ (21,103) | $ (18,578) | $ (14,292) |
SHAREHOLDERS' EQUITY- AOCI Recl
SHAREHOLDERS' EQUITY- AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Gain (loss) on investment securities | $ (25,989) | $ 45,234 | |||||||||
Income tax provision | (19,677) | $ 241,405 | 388,048 | ||||||||
Income (loss) from continuing operations | $ (72,869) | $ (21,193) | $ 25,174 | $ 15,898 | $ (27,590) | $ 90,899 | $ 153,542 | $ 203,623 | (52,990) | 420,474 | $ 706,610 |
Accumulated other comprehensive income (loss) | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Total reclassifications for the period | (1,599) | (4,286) | |||||||||
Unrealized appreciation (depreciation) on securities | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Total reclassifications for the period | 926 | ||||||||||
Defined benefit pension plan | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Reclassifications for the period, tax | 1,443 | 2,452 | |||||||||
Total reclassifications for the period | (2,525) | (4,286) | |||||||||
Amortization of net actuarial loss | General and Administrative | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Reclassifications for the period, before tax | (3,968) | $ (6,738) | |||||||||
Reclassification out of AOCI | Unrealized appreciation (depreciation) on securities | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Income tax provision | (583) | ||||||||||
Income (loss) from continuing operations | (926) | ||||||||||
Reclassification out of AOCI | Other-than-temporary impairment of available-for-sale securities | |||||||||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Income | |||||||||||
Gain (loss) on investment securities | $ (1,509) |
STOCK-BASED COMPENSATION - Ince
STOCK-BASED COMPENSATION - Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Common-stock based award plan | ||||
Compensation expense (in dollars) | $ 24,383 | $ 25,195 | $ 26,703 | |
Excess tax benefit from stock-based compensation | $ 934 | 3,772 | 26,616 | |
Stock options | ||||
Common-stock based award plan | ||||
The period from the grant date after which options expire | 10 years | |||
Compensation expense (in dollars) | $ 8,290 | $ 8,846 | $ 11,268 | |
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) | 1.80% | 1.70% | 1.60% | |
Expected stock volatility (as a percent) | 37.60% | 36.90% | 52.60% | |
Dividend yield (as a percent) | 4.60% | 3.90% | 3.10% | |
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months | |
Weighted-average fair value of options granted (in dollars per share) | $ 13.12 | $ 16.39 | $ 29.44 | |
Options | ||||
Options outstanding at the beginning of the period (in shares) | 2,776,000 | 2,629,000 | 3,991,000 | |
Granted (in shares) | 876,379 | 876,000 | 420,000 | 261,000 |
Exercised (in shares) | (220,000) | (255,000) | (1,613,000) | |
Forfeited/Expired (in shares) | (120,000) | (18,000) | (10,000) | |
Option outstanding at the end of the period (in shares) | 3,312,000 | 2,776,000 | 2,629,000 | |
Exercisable at the end of the period (in shares) | 2,225,000 | 2,014,000 | 1,884,000 | |
Shares available to grant | 6,600,000 | 2,515,000 | 3,432,000 | |
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 48.51 | $ 43.46 | $ 34.12 | |
Granted (in dollars per share) | 58.25 | 68.83 | 79.67 | |
Exercised (in dollars per share) | 31.52 | 28.46 | 26.08 | |
Forfeited/Expired (in dollars per share) | 61.80 | 66.78 | 68.82 | |
Outstanding at the end of the period (in dollars per share) | 51.74 | 48.51 | 43.46 | |
Exercisable at the end of the period (in dollars per share) | $ 46.66 | $ 41.62 | $ 35.93 | |
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 | 294,000 | 275,000 | 230,000 | |
Compensation expense (in dollars) | $ 16,093 | $ 16,349 | $ 15,435 | |
Options | ||||
Granted (in shares) | 294,575 | |||
Restricted stock | Minimum | ||||
Common-stock based award plan | ||||
Vesting period | 3 years | |||
Restricted stock | Maximum | ||||
Common-stock based award plan | ||||
Vesting period | 6 years |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Options (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Information about outstanding and exercisable stock options | |
Exercise price, low end of range (in dollars per share) | $ 21.065 |
Exercise price, high end of range (in dollars per share) | $ 79.67 |
Outstanding Stock Options, Options at the end of the period (in shares) | shares | 3,312 |
Outstanding Stock Options, Weighted-Average Remaining Life | 5 years 8 months 12 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 51.74 |
Exercisable Stock Options, Options at the end of the period (in shares) | shares | 2,225 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 46.66 |
Range of Exercise Prices from $21.065 to $38.015 | |
Information about outstanding and exercisable stock options | |
Exercise price, low end of range (in dollars per share) | 21.065 |
Exercise price, high end of range (in dollars per share) | $ 38.015 |
Outstanding Stock Options, Options at the end of the period (in shares) | shares | 1,000 |
Outstanding Stock Options, Weighted-Average Remaining Life | 1 year 10 months 24 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 30.36 |
Exercisable Stock Options, Options at the end of the period (in shares) | shares | 1,000 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 30.36 |
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) | 47.290 |
Exercise price, high end of range (in dollars per share) | $ 59.76 |
Outstanding Stock Options, Options at the end of the period (in shares) | shares | 1,679 |
Outstanding Stock Options, Weighted-Average Remaining Life | 7 years 1 month 6 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 56.50 |
Exercisable Stock Options, Options at the end of the period (in shares) | shares | 925 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 55.41 |
Range of Exercise Prices from $68.83 to $79.67 | |
Information about outstanding and exercisable stock options | |
Exercise price, low end of range (in dollars per share) | 68.83 |
Exercise price, high end of range (in dollars per share) | $ 79.67 |
Outstanding Stock Options, Options at the end of the period (in shares) | shares | 633 |
Outstanding Stock Options, Weighted-Average Remaining Life | 7 years 9 months 18 days |
Outstanding Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 |
Exercisable Stock Options, Options at the end of the period (in shares) | shares | 300 |
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 73.94 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock based awards | |||
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 46.66 | ||
Stock options | |||
Stock based awards | |||
Weighted-average remaining life of exercisable stock options | 4 years 3 months 18 days | ||
Exercisable stock options, aggregate intrinsic value (in dollars) | $ 47.9 | ||
Exercisable Stock Options, Weighted-Average Exercise Price (in dollars per share) | $ 46.66 | ||
Number of options vested or expected to vest (in shares) | 3,284,246 | ||
Options vested or expected to vest, aggregate intrinsic value (in dollars) | $ 54.8 | ||
Options vested or expected to vest, weighted-average exercise price (in dollars per share) | $ 51.69 | ||
Unrecognized compensation cost (in dollars) | $ 6.6 | ||
Period over which unrecognized compensation cost is expected to be recognized | 2 years 8 months 12 days | ||
Total intrinsic value of options exercised (in dollars) | $ 6.3 | $ 10.7 | $ 100.9 |
Grant date fair value of shares vested (in dollars) | 9.6 | $ 8.1 | $ 8.8 |
Restricted stock | |||
Stock based awards | |||
Unrecognized compensation cost (in dollars) | $ 19.2 | ||
Period over which unrecognized compensation cost is expected to be recognized | 2 years 1 month 6 days | ||
Restricted stock awards activity, shares | |||
Unvested at the beginning of the period (in shares) | 668,000 | 634,000 | 576,000 |
Granted (in shares) | 294,000 | 275,000 | 230,000 |
Vested (in shares) | (256,000) | (214,000) | (157,000) |
Forfeited (in shares) | (58,000) | (27,000) | (15,000) |
Unvested at the end of the period (in shares) | 648,000 | 668,000 | 634,000 |
Restricted stock awards activity, weighted average grant date fair value | |||
Unvested at the beginning of the period (in dollars per share) | $ 67.03 | $ 64.03 | $ 55.17 |
Granted (in dollars per share) | 58.25 | 68.83 | 79.67 |
Vested (in dollars per share) | 64.75 | 60.80 | 54.08 |
Forfeited (in dollars per share) | 63.65 | 64.45 | 67.92 |
Unvested at the end of the period (in dollars per share) | $ 64.24 | $ 67.03 | $ 64.03 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | |||||||||||
Income (loss) from continuing operations | $ (72,869) | $ (21,193) | $ 25,174 | $ 15,898 | $ (27,590) | $ 90,899 | $ 153,542 | $ 203,623 | $ (52,990) | $ 420,474 | $ 706,610 |
Loss from discontinued operations | (3,838) | (47) | (47) | ||||||||
NET INCOME (LOSS) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | (56,828) | 420,427 | 706,563 |
Adjustment for basic earnings per share: | |||||||||||
Earnings allocated to unvested shareholders | (1,858) | (2,163) | (4,132) | ||||||||
Numerator for basic earnings per share: | |||||||||||
From continuing operations | (54,848) | 418,311 | 702,478 | ||||||||
From discontinued operations | (3,838) | (47) | (47) | ||||||||
Net income (loss) attributable to parent, basic | (58,686) | 418,264 | 702,431 | ||||||||
Adjustment for diluted earnings per share: | |||||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 6 | 30 | |||||||||
Numerator for diluted earnings per share: | |||||||||||
From continuing operations | (54,848) | 418,317 | 702,508 | ||||||||
From discontinued operations | (3,838) | (47) | (47) | ||||||||
Net income (loss) attributable to parent, diluted | $ (58,686) | $ 418,270 | $ 702,461 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share - weighted-average shares | 107,996 | 107,754 | 107,800 | ||||||||
Effect of dilutive shares from stock options and restricted stock (in shares) | 816 | 1,341 | |||||||||
Denominator for diluted earnings per share - adjusted weighted-average shares | 107,996 | 108,570 | 109,141 | ||||||||
Basic earnings per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $ (0.68) | $ (0.20) | $ 0.23 | $ 0.15 | $ (0.26) | $ 0.84 | $ 1.42 | $ 1.87 | $ (0.50) | $ 3.88 | $ 6.52 |
Loss from discontinued operations (in dollars per share) | (0.04) | ||||||||||
Net income (loss) (in dollars per share) | (0.68) | (0.20) | 0.19 | 0.15 | (0.26) | 0.84 | 1.42 | 1.87 | (0.54) | 3.88 | 6.52 |
Diluted earnings per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | (0.68) | (0.20) | 0.23 | 0.15 | (0.26) | 0.83 | 1.41 | 1.86 | (0.50) | 3.85 | 6.44 |
Loss from discontinued operations (in dollars per share) | (0.04) | ||||||||||
Net income (loss) (in dollars per share) | $ (0.68) | $ (0.20) | $ 0.19 | $ 0.15 | $ (0.26) | $ 0.83 | $ 1.41 | $ 1.86 | $ (0.54) | $ 3.85 | $ 6.44 |
Outstanding equity awards | |||||||||||
Shares excluded from calculation of diluted earnings per share | 1,788 | 667 | 215 | ||||||||
Weighted-average price per share (in dollars per share) | $ 63.73 | $ 72.85 | $ 79.67 |
FINANCIAL INSTRUMENTS AND FAI54
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Equity Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)item | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | |
Available-for-sale securities | |||
Number of securities in an unrealized loss position under 30 days | item | 1 | ||
Other-than-temporary impairment charge | $ 26,000 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Non-qualified Supplemental Savings Plan | |||
Assets held in Non-qualified Supplement Savings Plan, at fair value | 13,400 | $ 12,900 | |
Equity securities | |||
Available-for-sale securities | |||
Cost | 38,473 | 64,462 | |
Gross Unrealized Gains | 33,051 | 28,530 | |
Gross Unrealized Losses | 1,509 | ||
Equity available-for-sale securities sold, fair value | $ 49,200 | ||
Total gross realized gain on such sales of available-for-sale securities | $ 45,200 | ||
Equity securities | Total Measure at Fair Value | |||
Available-for-sale securities | |||
Estimated Fair Value | $ 71,524 | $ 91,483 |
FINANCIAL INSTRUMENTS AND FAI55
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT - Long-term fixed-rate (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 19, 2015 |
Supplemental fair value information about long-term fixed-rate debt | |||
Carrying value of long-term fixed-rate debt | $ 491,800 | ||
Unsecured senior notes issued March 19, 2015 | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Debt issued | 500,000 | $ 500,000 | |
Total Measure at Fair Value | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Carrying value of long-term fixed-rate debt | $ 531,500 | ||
Significant Other Observable Inputs (Level 2) | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Fair value of long-term fixed-rate debt | 529,600 | ||
Significant Other Observable Inputs (Level 2) | Total Measure at Fair Value | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Fair value of long-term fixed-rate debt | $ 553,500 | ||
Recurring basis | Total Measure at Fair Value | |||
Short-term investments: | |||
Short-term investments | 44,148 | ||
Assets: | |||
Cash and cash equivalents | 905,561 | ||
Investments | 71,524 | ||
Other current assets | 27,631 | ||
Other assets | 2,000 | ||
Total assets measured at fair value | 1,050,864 | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Short-term investments: | |||
Short-term investments | 18,074 | ||
Assets: | |||
Cash and cash equivalents | 905,561 | ||
Investments | 71,524 | ||
Other current assets | 27,381 | ||
Other assets | 2,000 | ||
Total assets measured at fair value | 1,024,540 | ||
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Short-term investments: | |||
Short-term investments | 26,074 | ||
Assets: | |||
Other current assets | 250 | ||
Total assets measured at fair value | 26,324 | ||
Recurring basis | Certificate of deposit | Total Measure at Fair Value | |||
Short-term investments: | |||
Short-term investments | 2,000 | ||
Recurring basis | Certificate of deposit | Significant Other Observable Inputs (Level 2) | |||
Short-term investments: | |||
Short-term investments | 2,000 | ||
Recurring basis | Corporate debt securities | Total Measure at Fair Value | |||
Short-term investments: | |||
Short-term investments | 18,591 | ||
Recurring basis | Corporate debt securities | Significant Other Observable Inputs (Level 2) | |||
Short-term investments: | |||
Short-term investments | 18,591 | ||
Recurring basis | U.S. government and federal agency securities | Total Measure at Fair Value | |||
Short-term investments: | |||
Short-term investments | 23,557 | ||
Recurring basis | U.S. government and federal agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Short-term investments: | |||
Short-term investments | 18,074 | ||
Recurring basis | U.S. government and federal agency securities | Significant Other Observable Inputs (Level 2) | |||
Short-term investments: | |||
Short-term investments | 5,483 | ||
Nonrecurring basis | Total Measure at Fair Value | |||
Assets: | |||
Assets held for sale | 1,106 | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Assets held for sale | $ 1,106 |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
EMPLOYEE BENEFIT PLANS | |||
Accumulated Benefit Obligation | $ 109,731 | $ 107,417 | |
Changes in projected benefit obligations | |||
Projected benefit obligation at beginning of year | 107,417 | 111,108 | |
Interest cost | 4,266 | 4,584 | $ 4,763 |
Actuarial loss | 15,051 | 2,741 | |
Benefits paid | (17,003) | (11,016) | |
Projected benefit obligation at end of year | 109,731 | 107,417 | 111,108 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 98,060 | 108,157 | |
Actual return on plan assets | 9,653 | (1,324) | |
Employer contribution | 38 | 2,243 | |
Benefits paid | (17,003) | (11,016) | |
Fair value of plan assets at end of year | 90,748 | 98,060 | $ 108,157 |
Funded status of the plan at end of year | (18,983) | (9,357) | |
Amounts Recognized in the Consolidated Balance Sheets | |||
Accrued liabilities | (45) | (44) | |
Noncurrent liabilities-other | (18,938) | (9,313) | |
Net amount recognized | (18,983) | (9,357) | |
Amounts recognized in accumulated other comprehensive income and not yet reflected in net periodic benefit cost | |||
Net actuarial loss | (34,112) | $ (30,144) | |
Net actuarial loss, which is expected to be amortized in next year's periodic benefit cost | $ 2,300 | ||
Weighted average assumptions used for the pension calculations | |||
Discount rate for net periodic benefit costs (as a percent) | 4.27% | 4.32% | 4.80% |
Discount rate for year-end obligations (as a percent) | 3.64% | 4.27% | 4.32% |
Expected return on plan assets (as a percent) | 5.89% | 6.26% | 6.61% |
Components of the net periodic pension expense (benefit) | |||
Interest cost | $ 4,266 | $ 4,584 | $ 4,763 |
Expected return on plan assets | (5,616) | (6,855) | (6,789) |
Recognized net actuarial loss | 2,083 | 1,308 | 873 |
Pension settlement charges | 4,964 | 2,873 | 1,376 |
Net pension expense | 5,697 | $ 1,910 | $ 223 |
Expected benefits to be paid from the Pension Plan | |||
2,017 | 13,976 | ||
2,018 | 5,859 | ||
2,019 | 6,013 | ||
2,020 | 7,094 | ||
2,021 | 5,674 | ||
2022-2026 | 33,078 | ||
Total | $ 71,694 | ||
Target Allocation (as a percent) | 100.00% | ||
Percentage of Plan Assets | 100.00% | 100.00% | |
U.S. equities | |||
Expected benefits to be paid from the Pension Plan | |||
Target Allocation (as a percent) | 55.00% | ||
Percentage of Plan Assets | 62.00% | 59.00% | |
International equities | |||
Expected benefits to be paid from the Pension Plan | |||
Target Allocation (as a percent) | 13.00% | ||
Percentage of Plan Assets | 12.00% | 13.00% | |
Fixed income | |||
Expected benefits to be paid from the Pension Plan | |||
Target Allocation (as a percent) | 27.00% | ||
Percentage of Plan Assets | 21.00% | 23.00% | |
Real estate and other | |||
Expected benefits to be paid from the Pension Plan | |||
Target Allocation (as a percent) | 5.00% | ||
Percentage of Plan Assets | 5.00% | 5.00% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
PLAN ASSETS | |||
Fair value of plan assets | $ 90,748 | $ 98,060 | $ 108,157 |
Oil and Gas Properties | |||
PLAN ASSETS | |||
Fair value of plan assets | 177 | 387 | $ 301 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
PLAN ASSETS | |||
Fair value of plan assets | 90,571 | 97,673 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments. | |||
PLAN ASSETS | |||
Fair value of plan assets | 467 | 2,248 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 70,250 | 78,060 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic stock funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 36,107 | 40,072 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Bond funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 22,809 | 25,344 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International stock funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 11,334 | 12,644 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic common stock | |||
PLAN ASSETS | |||
Fair value of plan assets | 18,305 | 15,883 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign equity stock | |||
PLAN ASSETS | |||
Fair value of plan assets | 1,549 | 1,482 | |
Significant Unobservable Inputs (Level 3) | |||
PLAN ASSETS | |||
Fair value of plan assets | 177 | 387 | |
Significant Unobservable Inputs (Level 3) | Oil and Gas Properties | |||
PLAN ASSETS | |||
Fair value of plan assets | 177 | 387 | |
Total Measure at Fair Value | |||
PLAN ASSETS | |||
Fair value of plan assets | 90,748 | 98,060 | |
Total Measure at Fair Value | Short-term investments. | |||
PLAN ASSETS | |||
Fair value of plan assets | 467 | 2,248 | |
Total Measure at Fair Value | Mutual funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 70,250 | 78,060 | |
Total Measure at Fair Value | Domestic stock funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 36,107 | 40,072 | |
Total Measure at Fair Value | Bond funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 22,809 | 25,344 | |
Total Measure at Fair Value | International stock funds | |||
PLAN ASSETS | |||
Fair value of plan assets | 11,334 | 12,644 | |
Total Measure at Fair Value | Domestic common stock | |||
PLAN ASSETS | |||
Fair value of plan assets | 18,305 | 15,883 | |
Total Measure at Fair Value | Foreign equity stock | |||
PLAN ASSETS | |||
Fair value of plan assets | 1,549 | 1,482 | |
Total Measure at Fair Value | Oil and Gas Properties | |||
PLAN ASSETS | |||
Fair value of plan assets | $ 177 | $ 387 |
EMPLOYEE BENEFIT PLANS - Plan a
EMPLOYEE BENEFIT PLANS - Plan assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 98,060 | $ 108,157 | |
Fair value of plan assets at end of year | $ 90,748 | 98,060 | $ 108,157 |
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 | $ 21,600 | 24,800 | 32,300 |
General and Administrative | |||
DEFINED CONTRIBUTION PLAN | |||
Employer contribution | 6,300 | ||
Oil and Gas Properties | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 387 | 301 | |
Unrealized gains (losses) relating to property still held at the reporting date | (210) | 86 | |
Fair value of plan assets at end of year | $ 177 | $ 387 | $ 301 |
SUPPLEMENTAL BALANCE SHEET IN59
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reserve for bad debt: | |||
Balance at the beginning of the period | $ 6,181 | $ 4,597 | $ 4,795 |
Provision for (recovery of) bad debt | (2,013) | 6,034 | (200) |
Write off of bad debt | (1,472) | (4,450) | 2 |
Balance at the end of the period | 2,696 | 6,181 | $ 4,597 |
Accounts receivable, net of reserve: | |||
Trade receivables | 286,998 | 445,948 | |
Insurance recovery receivable | 50,200 | ||
Income tax receivable | 37,971 | ||
Total accounts receivable, net of reserve | 375,169 | 445,948 | |
Prepaid expenses and other current assets: | |||
Restricted cash | 27,566 | 28,484 | |
Prepaid insurance | 4,354 | 6,386 | |
Deferred mobilization | 9,913 | 11,697 | |
Prepaid income taxes | 26,138 | 6,867 | |
Prepaid value added tax | 1,407 | 1,055 | |
Other | 8,689 | 9,986 | |
Total prepaid expenses and other current assets | 78,067 | 64,475 | |
Accrued liabilities: | |||
Accrued operating costs | 17,009 | 34,292 | |
Payroll and employee benefits | 43,547 | 36,101 | |
Taxes payable, other than income tax | 31,443 | 38,571 | |
Deferred mobilization | 17,923 | 18,230 | |
Self-insurance liabilities | 14,801 | 10,796 | |
Deferred income | 34,681 | 42,769 | |
Other | 4,700 | 16,798 | |
Litigation and claims | 70,535 | ||
Total accrued liabilities | 234,639 | 197,557 | |
Noncurrent liabilities - Other: | |||
Pension and other non-qualified retirement plans | 39,762 | 28,423 | |
Self-insurance liabilities | 21,651 | 20,846 | |
Deferred mobilization | 24,781 | 38,492 | |
Uncertain tax positions including interest and penalties | 12,502 | 17,724 | |
Other | 4,085 | 4,635 | |
Total noncurrent liabilities - other | $ 102,781 | $ 110,120 |
SUPPLEMENTAL CASH FLOW INFORM60
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash payments: | |||
Interest paid, net of amounts capitalized | $ 28,011 | $ 11,651 | $ 5,377 |
Income taxes paid | 15,577 | 131,128 | 317,599 |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | |||
Capital expenditures incurred | 241,290 | 1,033,241 | 1,045,820 |
Additions incurred prior year but paid for in current period | 25,344 | 123,548 | 29,264 |
Additions incurred but not paid for as of the end of the period | (9,465) | (25,344) | (123,548) |
Capital expenditures per Consolidated Condensed Statements of Cash Flows | $ 257,169 | $ 1,131,445 | $ 951,536 |
RISK FACTORS (Details)
RISK FACTORS (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2016USD ($) | |
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 CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Sep. 14, 2016USD ($) | Apr. 28, 2015USD ($) | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Purchase obligations | |||||
Purchase orders outstanding for drilling equipment | $ 44,000 | ||||
LEASES | |||||
Area of leased office space (in square feet) | ft² | 219,700 | ||||
Fiscal Year | |||||
2,017 | $ 8,550 | ||||
2,018 | 5,680 | ||||
2,019 | 5,214 | ||||
2,020 | 4,401 | ||||
2,021 | 3,049 | ||||
Thereafter | 9,679 | ||||
Total | 36,573 | ||||
Rent expense | |||||
Total rent expense | 13,500 | $ 13,600 | $ 12,100 | ||
CONTINGENCIES | |||||
Gain contingencies recognized in consolidated financial statements | 0 | ||||
Insurance recovery receivable | 50,200 | ||||
Accrued liabilities | |||||
CONTINGENCIES | |||||
Settlement due | 72,000 | ||||
Judicial ruling | Keel accident case | |||||
CONTINGENCIES | |||||
Litigation settlement | $ 72,000 | ||||
Minimum | Judicial ruling | Keel accident case | |||||
CONTINGENCIES | |||||
Damages value | $ 100,000 | ||||
U.S. Land | |||||
CONTINGENCIES | |||||
Operating cost | $ 18,800 |
SEGMENT INFORMATION - Reportabl
SEGMENT INFORMATION - Reportable segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment information | |||||||||||
Sales | $ 331,708 | $ 366,486 | $ 438,191 | $ 487,847 | $ 553,800 | $ 661,445 | $ 885,670 | $ 1,060,787 | $ 1,624,232 | $ 3,161,702 | $ 3,715,968 |
Segment Operating Income (Loss) | 68,200 | 748,373 | 1,121,791 | ||||||||
Depreciation | 598,587 | 608,039 | 523,984 | ||||||||
Total assets | 6,831,955 | 7,139,145 | 6,831,955 | 7,139,145 | 6,718,110 | ||||||
Additions to Long-Lived Assets | 241,290 | 1,033,241 | 1,045,820 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | 68,200 | 748,373 | 1,121,791 | ||||||||
Income from asset sales | 9,896 | 11,834 | 19,083 | ||||||||
Corporate general and administrative costs and corporate depreciation | (104,062) | (88,244) | (87,700) | ||||||||
Operating income (loss) from continuing operations | (93,001) | $ (13,256) | $ 41,621 | $ 38,670 | (24,783) | $ 135,049 | $ 231,326 | $ 330,371 | (25,966) | 671,963 | 1,053,174 |
Other income (expense) | |||||||||||
Interest and dividend income | 3,166 | 5,840 | 1,543 | ||||||||
Interest expense | (22,913) | (15,023) | (4,657) | ||||||||
Gain (loss) on investment securities | (25,989) | 45,234 | |||||||||
Other | (965) | (901) | (636) | ||||||||
Total other income (expense) | (46,701) | (10,084) | 41,484 | ||||||||
Income (loss) from continuing operations before income taxes | (72,667) | 661,879 | 1,094,658 | ||||||||
Other | |||||||||||
Segment information | |||||||||||
Sales | 13,275 | 14,187 | 13,410 | ||||||||
Segment Operating Income (Loss) | (7,491) | (10,911) | (9,068) | ||||||||
Depreciation | 20,753 | 19,096 | 15,383 | ||||||||
Total assets | 1,234,323 | 1,025,402 | 1,234,323 | 1,025,402 | 726,174 | ||||||
Additions to Long-Lived Assets | 20,076 | 27,518 | 27,117 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | (7,491) | (10,911) | (9,068) | ||||||||
Operating segment | |||||||||||
Segment information | |||||||||||
Sales | 1,625,087 | 3,162,582 | 3,716,835 | ||||||||
Operating segment | Other | |||||||||||
Segment information | |||||||||||
Sales | 14,130 | 15,067 | 14,277 | ||||||||
Inter-Segment | |||||||||||
Segment information | |||||||||||
Sales | (855) | (880) | (867) | ||||||||
Inter-Segment | Other | |||||||||||
Segment information | |||||||||||
Sales | 855 | 880 | 867 | ||||||||
Contract Drilling: | |||||||||||
Segment information | |||||||||||
Sales | 1,610,957 | 3,147,515 | 3,702,558 | ||||||||
Segment Operating Income (Loss) | 75,691 | 759,284 | 1,130,859 | ||||||||
Depreciation | 577,834 | 588,943 | 508,601 | ||||||||
Total assets | 5,597,632 | 6,113,743 | 5,597,632 | 6,113,743 | 5,991,936 | ||||||
Additions to Long-Lived Assets | 221,214 | 1,005,723 | 1,018,703 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | 75,691 | 759,284 | 1,130,859 | ||||||||
Contract Drilling: | U.S. Land | |||||||||||
Segment information | |||||||||||
Sales | 1,242,462 | 2,523,518 | 3,099,954 | ||||||||
Segment Operating Income (Loss) | 74,118 | 698,375 | 1,025,745 | ||||||||
Depreciation | 508,237 | 519,950 | 455,934 | ||||||||
Total assets | 5,005,299 | 5,429,179 | 5,005,299 | 5,429,179 | 5,261,361 | ||||||
Additions to Long-Lived Assets | 209,156 | 949,978 | 930,263 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | 74,118 | 698,375 | 1,025,745 | ||||||||
Contract Drilling: | Offshore | |||||||||||
Segment information | |||||||||||
Sales | 138,601 | 241,666 | 251,341 | ||||||||
Segment Operating Income (Loss) | 15,659 | 68,002 | 69,969 | ||||||||
Depreciation | 12,495 | 11,659 | 12,300 | ||||||||
Total assets | 105,152 | 118,852 | 105,152 | 118,852 | 137,104 | ||||||
Additions to Long-Lived Assets | 9,694 | 16,100 | 4,372 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | 15,659 | 68,002 | 69,969 | ||||||||
Contract Drilling: | International Land | |||||||||||
Segment information | |||||||||||
Sales | 229,894 | 382,331 | 351,263 | ||||||||
Segment Operating Income (Loss) | (14,086) | (7,093) | 35,145 | ||||||||
Depreciation | 57,102 | 57,334 | 40,367 | ||||||||
Total assets | $ 487,181 | $ 565,712 | 487,181 | 565,712 | 593,471 | ||||||
Additions to Long-Lived Assets | 2,364 | 39,645 | 84,068 | ||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes | |||||||||||
Segment operating income | (14,086) | (7,093) | 35,145 | ||||||||
Contract Drilling: | Operating segment | |||||||||||
Segment information | |||||||||||
Sales | 1,610,957 | 3,147,515 | 3,702,558 | ||||||||
Contract Drilling: | Operating segment | U.S. Land | |||||||||||
Segment information | |||||||||||
Sales | 1,242,462 | 2,523,518 | 3,099,954 | ||||||||
Contract Drilling: | Operating segment | Offshore | |||||||||||
Segment information | |||||||||||
Sales | 138,601 | 241,666 | 251,341 | ||||||||
Contract Drilling: | Operating segment | International Land | |||||||||||
Segment information | |||||||||||
Sales | $ 229,894 | $ 382,331 | $ 351,263 |
SEGMENT INFORMATION - Revenue f
SEGMENT INFORMATION - Revenue from external customers and long lived assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment information | |||||||||||
Operating revenues | $ 331,708 | $ 366,486 | $ 438,191 | $ 487,847 | $ 553,800 | $ 661,445 | $ 885,670 | $ 1,060,787 | $ 1,624,232 | $ 3,161,702 | $ 3,715,968 |
Long-Lived Assets | 5,144,733 | 5,563,170 | 5,144,733 | 5,563,170 | $ 5,187,587 | ||||||
Accounts receivable, net of reserve | 375,169 | 445,948 | $ 375,169 | $ 445,948 | |||||||
Operating revenues | Customer concentration | Customer one | |||||||||||
Segment information | |||||||||||
Concentration percentage | 11.90% | 10.10% | 10.70% | ||||||||
Operating revenues | Customer concentration | Customer two | |||||||||||
Segment information | |||||||||||
Concentration percentage | 9.40% | 4.60% | 2.90% | ||||||||
Receivables | Customer concentration | |||||||||||
Segment information | |||||||||||
Accounts receivable, net of reserve | 49,500 | 101,300 | $ 49,500 | $ 101,300 | |||||||
United States | |||||||||||
Segment information | |||||||||||
Operating revenues | 1,386,786 | 2,750,043 | $ 3,338,365 | ||||||||
Long-Lived Assets | 4,804,328 | 5,149,315 | 4,804,328 | 5,149,315 | 4,753,844 | ||||||
Argentina | |||||||||||
Segment information | |||||||||||
Operating revenues | 159,427 | 177,984 | 107,189 | ||||||||
Long-Lived Assets | 183,286 | 211,862 | 183,286 | 211,862 | 145,783 | ||||||
Colombia | |||||||||||
Segment information | |||||||||||
Operating revenues | 20,488 | 70,076 | 81,168 | ||||||||
Long-Lived Assets | 91,815 | 102,401 | 91,815 | 102,401 | 105,842 | ||||||
Ecuador | |||||||||||
Segment information | |||||||||||
Operating revenues | 4,948 | 30,987 | 67,976 | ||||||||
Long-Lived Assets | 438 | 28,918 | 438 | 28,918 | 71,011 | ||||||
Other foreign | |||||||||||
Segment information | |||||||||||
Operating revenues | 52,583 | 132,612 | 121,270 | ||||||||
Long-Lived Assets | $ 64,866 | $ 70,674 | $ 64,866 | $ 70,674 | $ 111,107 |
GUARANTOR AND NON-GUARANTOR F65
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Mar. 19, 2015 | |
Financial Information | ||
Percentage ownership of subsidiary | 100.00% | |
Unsecured senior notes issued March 19, 2015 | ||
Financial Information | ||
Debt issued | $ 500 | $ 500 |
Issuer Subsidiary | Unsecured senior notes issued March 19, 2015 | ||
Financial Information | ||
Debt issued | $ 500 |
GUARANTOR AND NON-GUARANTOR F66
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||
Operating revenues | $ 331,708 | $ 366,486 | $ 438,191 | $ 487,847 | $ 553,800 | $ 661,445 | $ 885,670 | $ 1,060,787 | $ 1,624,232 | $ 3,161,702 | $ 3,715,968 |
Operating costs and other | 1,650,198 | 2,489,739 | 2,662,794 | ||||||||
Operating income (loss) from continuing operations | (93,001) | (13,256) | 41,621 | 38,670 | (24,783) | 135,049 | 231,326 | 330,371 | (25,966) | 671,963 | 1,053,174 |
Other income, net | 4,939 | 46,141 | |||||||||
Other expense, net | (23,788) | ||||||||||
Interest expense | (22,913) | (15,023) | (4,657) | ||||||||
Income (loss) from continuing operations before income taxes | (72,667) | 661,879 | 1,094,658 | ||||||||
Income tax provision (benefit) | (19,677) | 241,405 | 388,048 | ||||||||
Income (loss) from continuing operations | (72,869) | (21,193) | 25,174 | 15,898 | (27,590) | 90,899 | 153,542 | 203,623 | (52,990) | 420,474 | 706,610 |
Income (loss) from discontinued operations before income taxes | 2,360 | (124) | 2,758 | ||||||||
Income tax provision (benefit) | 6,198 | (77) | 2,805 | ||||||||
Loss from discontinued operations | (3,838) | (47) | (47) | ||||||||
NET INCOME (LOSS) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | (56,828) | 420,427 | 706,563 |
Eliminations | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||
Operating revenues | (70) | (75) | (152) | ||||||||
Operating costs and other | (1,323) | (3,104) | (4,300) | ||||||||
Operating income (loss) from continuing operations | 1,253 | 3,029 | 4,148 | ||||||||
Other income, net | (4,148) | ||||||||||
Other expense, net | (1,253) | (3,029) | |||||||||
Equity in net income (loss) of subsidiaries | 61,638 | (414,214) | (715,525) | ||||||||
Income (loss) from continuing operations before income taxes | 61,638 | (414,214) | (715,525) | ||||||||
Income (loss) from continuing operations | 61,638 | (414,214) | (715,525) | ||||||||
NET INCOME (LOSS) | 61,638 | (414,214) | (715,525) | ||||||||
Guarantor/Parent | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||
Operating costs and other | 13,145 | 10,875 | 10,763 | ||||||||
Operating income (loss) from continuing operations | (13,145) | (10,875) | (10,763) | ||||||||
Other income, net | 57 | ||||||||||
Other expense, net | (194) | (91) | |||||||||
Interest expense | (375) | (159) | (42) | ||||||||
Equity in net income (loss) of subsidiaries | (47,166) | 427,342 | 713,001 | ||||||||
Income (loss) from continuing operations before income taxes | (60,880) | 416,217 | 702,253 | ||||||||
Income tax provision (benefit) | (4,052) | (4,210) | (4,310) | ||||||||
Income (loss) from continuing operations | (56,828) | 420,427 | 706,563 | ||||||||
NET INCOME (LOSS) | (56,828) | 420,427 | 706,563 | ||||||||
Issuer Subsidiary | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||
Operating revenues | 1,373,511 | 2,735,863 | 3,325,039 | ||||||||
Operating costs and other | 1,358,269 | 2,037,465 | 2,291,775 | ||||||||
Operating income (loss) from continuing operations | 15,242 | 698,398 | 1,033,264 | ||||||||
Other income, net | 7,523 | 48,108 | |||||||||
Other expense, net | (22,243) | ||||||||||
Interest expense | (20,256) | (8,955) | (3,049) | ||||||||
Equity in net income (loss) of subsidiaries | (14,472) | (13,128) | 2,524 | ||||||||
Income (loss) from continuing operations before income taxes | (41,729) | 683,838 | 1,080,847 | ||||||||
Income tax provision (benefit) | 5,127 | 258,536 | 370,734 | ||||||||
Income (loss) from continuing operations | (46,856) | 425,302 | 710,113 | ||||||||
NET INCOME (LOSS) | (46,856) | 425,302 | 710,113 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||
Operating revenues | 250,791 | 425,914 | 391,081 | ||||||||
Operating costs and other | 280,107 | 444,503 | 364,556 | ||||||||
Operating income (loss) from continuing operations | (29,316) | (18,589) | 26,525 | ||||||||
Other income, net | 536 | 2,124 | |||||||||
Other expense, net | (98) | ||||||||||
Interest expense | (2,282) | (5,909) | (1,566) | ||||||||
Income (loss) from continuing operations before income taxes | (31,696) | (23,962) | 27,083 | ||||||||
Income tax provision (benefit) | (20,752) | (12,921) | 21,624 | ||||||||
Income (loss) from continuing operations | (10,944) | (11,041) | 5,459 | ||||||||
Income (loss) from discontinued operations before income taxes | 2,360 | (124) | 2,758 | ||||||||
Income tax provision (benefit) | 6,198 | (77) | 2,805 | ||||||||
Loss from discontinued operations | (3,838) | (47) | (47) | ||||||||
NET INCOME (LOSS) | $ (14,782) | $ (11,088) | $ 5,412 |
GUARANTOR AND NON-GUARANTOR F67
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Net income (loss) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | $ (56,828) | $ 420,427 | $ 706,563 |
Other comprehensive income, net of income taxes: | |||||||||||
Unrealized (appreciation) depreciation on securities, net | 2,772 | (80,217) | (19,006) | ||||||||
Reclassification of realized (gains) losses in net income, net | 926 | (27,737) | |||||||||
Minimum pension liability adjustments, net | (2,525) | (4,286) | (2,661) | ||||||||
Other comprehensive income (loss) | 1,173 | (84,503) | (49,404) | ||||||||
Comprehensive income (loss) | (55,655) | 335,924 | 657,159 | ||||||||
Eliminations | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Net income (loss) | 61,638 | (414,214) | (715,525) | ||||||||
Other comprehensive income, net of income taxes: | |||||||||||
Comprehensive income (loss) | 61,638 | (414,214) | (715,525) | ||||||||
Guarantor/Parent | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Net income (loss) | (56,828) | 420,427 | 706,563 | ||||||||
Other comprehensive income, net of income taxes: | |||||||||||
Minimum pension liability adjustments, net | (63) | (666) | (213) | ||||||||
Other comprehensive income (loss) | (63) | (666) | (213) | ||||||||
Comprehensive income (loss) | (56,891) | 419,761 | 706,350 | ||||||||
Issuer Subsidiary | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Net income (loss) | (46,856) | 425,302 | 710,113 | ||||||||
Other comprehensive income, net of income taxes: | |||||||||||
Unrealized (appreciation) depreciation on securities, net | 2,772 | (80,217) | (19,006) | ||||||||
Reclassification of realized (gains) losses in net income, net | 926 | (27,737) | |||||||||
Minimum pension liability adjustments, net | (2,462) | (3,620) | (2,448) | ||||||||
Other comprehensive income (loss) | 1,236 | (83,837) | (49,191) | ||||||||
Comprehensive income (loss) | (45,620) | 341,465 | 660,922 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
Net income (loss) | (14,782) | (11,088) | 5,412 | ||||||||
Other comprehensive income, net of income taxes: | |||||||||||
Comprehensive income (loss) | $ (14,782) | $ (11,088) | $ 5,412 |
GUARANTOR AND NON-GUARANTOR F68
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 905,561 | $ 729,384 | $ 360,307 | $ 435,949 |
Short-term investments | 44,148 | 45,543 | ||
Accounts receivable, net of reserve | 375,169 | 445,948 | ||
Inventories | 124,325 | 128,541 | ||
Deferred income taxes | 17,206 | |||
Prepaid expenses and other | 78,067 | 64,475 | ||
Assets held for sale | 45,352 | |||
Current assets of discontinued operations | 64 | 8,097 | ||
Total current assets | 1,572,686 | 1,439,194 | ||
Investments | 84,955 | 104,354 | ||
Property, plant and equipment, net | 5,144,733 | 5,563,170 | 5,187,587 | |
Other assets | 29,645 | 40,524 | ||
TOTAL ASSETS | 6,832,019 | 7,147,242 | ||
CURRENT LIABILITIES: | ||||
Long-term debt due within one year | 39,094 | |||
Accounts payable | 95,422 | 108,169 | ||
Accrued liabilities | 234,639 | 197,557 | ||
Current liabilities of discontinued operations | 59 | 3,377 | ||
Total current liabilities | 330,120 | 348,197 | ||
NONCURRENT LIABILITIES: | ||||
Long-term debt | 491,847 | 492,443 | ||
Deferred income taxes | 1,342,456 | 1,295,916 | ||
Other | 102,781 | 110,120 | ||
Noncurrent liabilities of discontinued operations | 3,890 | 4,720 | ||
Total noncurrent liabilities | 1,940,974 | 1,903,199 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,140 | 11,099 | ||
Additional paid-in capital | 448,452 | 420,141 | ||
Retained earnings | 4,289,807 | 4,648,346 | ||
Accumulated other comprehensive income (loss) | (204) | (1,377) | ||
Less treasury stock, 3,322,423 shares in 2016 and 3,219,631 shares in 2015, at cost | (188,270) | (182,363) | ||
Total shareholders' equity | 4,560,925 | 4,895,846 | 4,891,169 | 4,446,075 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,832,019 | 7,147,242 | ||
Eliminations | ||||
CURRENT ASSETS: | ||||
Accounts receivable, net of reserve | (1,279) | (5) | ||
Deferred income taxes | (4,905) | |||
Prepaid expenses and other | (21,239) | (7,903) | ||
Total current assets | (22,518) | (12,813) | ||
Intercompany | (1,676,409) | (1,439,161) | ||
Other assets | (8,153) | |||
Investment in subsidiaries | (5,787,831) | (5,851,341) | ||
TOTAL ASSETS | (7,486,758) | (7,311,468) | ||
CURRENT LIABILITIES: | ||||
Accounts payable | (1,274) | (5) | ||
Accrued liabilities | 20,234 | (11,103) | ||
Total current liabilities | 18,960 | (11,108) | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | (13,058) | |||
Intercompany | (1,717,787) | (1,435,961) | ||
Total noncurrent liabilities | (1,717,787) | (1,449,019) | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | (100) | (100) | ||
Additional paid-in capital | (48,082) | (46,173) | ||
Retained earnings | (5,734,655) | (5,801,212) | ||
Accumulated other comprehensive income (loss) | (5,094) | (3,856) | ||
Total shareholders' equity | (5,787,931) | (5,851,341) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (7,486,758) | (7,311,468) | ||
Guarantor/Parent | Reportable Legal Entities | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | (955) | (838) | (2,050) | (202) |
Accounts receivable, net of reserve | 2 | 152 | ||
Deferred income taxes | 2,834 | |||
Prepaid expenses and other | 6,928 | 20,018 | ||
Total current assets | 5,975 | 22,166 | ||
Investments | 13,431 | 12,871 | ||
Property, plant and equipment, net | 59,173 | 55,902 | ||
Intercompany | 16,147 | 15,875 | ||
Other assets | 233 | 8,387 | ||
Investment in subsidiaries | 5,579,713 | 5,623,754 | ||
TOTAL ASSETS | 5,674,672 | 5,738,955 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 80,000 | 80,673 | ||
Accrued liabilities | 1,822 | 10,688 | ||
Total current liabilities | 81,822 | 91,361 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | (5,930) | |||
Intercompany | 1,016,673 | 733,008 | ||
Other | 21,182 | 18,740 | ||
Total noncurrent liabilities | 1,031,925 | 751,748 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,140 | 11,099 | ||
Additional paid-in capital | 448,452 | 420,141 | ||
Retained earnings | 4,289,807 | 4,648,346 | ||
Accumulated other comprehensive income (loss) | (204) | (1,377) | ||
Less treasury stock, 3,322,423 shares in 2016 and 3,219,631 shares in 2015, at cost | (188,270) | (182,363) | ||
Total shareholders' equity | 4,560,925 | 4,895,846 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,674,672 | 5,738,955 | ||
Issuer Subsidiary | Reportable Legal Entities | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 899,028 | 693,273 | 329,655 | 412,596 |
Short-term investments | 44,148 | 45,543 | ||
Accounts receivable, net of reserve | 325,325 | 374,383 | ||
Inventories | 87,946 | 88,010 | ||
Deferred income taxes | 19,277 | |||
Prepaid expenses and other | 20,625 | 6,713 | ||
Assets held for sale | 18,471 | |||
Total current assets | 1,395,543 | 1,227,199 | ||
Investments | 71,524 | 91,483 | ||
Property, plant and equipment, net | 4,716,736 | 5,063,705 | ||
Intercompany | 1,399,323 | 1,192,634 | ||
Other assets | 267 | 1,389 | ||
Investment in subsidiaries | 208,118 | 227,587 | ||
TOTAL ASSETS | 7,791,511 | 7,803,997 | ||
CURRENT LIABILITIES: | ||||
Long-term debt due within one year | 39,094 | |||
Accounts payable | 10,868 | 20,404 | ||
Accrued liabilities | 176,985 | 151,721 | ||
Total current liabilities | 187,853 | 211,219 | ||
NONCURRENT LIABILITIES: | ||||
Long-term debt | 491,847 | 492,443 | ||
Deferred income taxes | 1,303,324 | 1,275,428 | ||
Intercompany | 209,276 | 186,784 | ||
Other | 36,379 | 31,560 | ||
Total noncurrent liabilities | 2,040,826 | 1,986,215 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 100 | 100 | ||
Additional paid-in capital | 47,533 | 45,824 | ||
Retained earnings | 5,510,105 | 5,556,783 | ||
Accumulated other comprehensive income (loss) | 5,094 | 3,856 | ||
Total shareholders' equity | 5,562,832 | 5,606,563 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,791,511 | 7,803,997 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 7,488 | 36,949 | $ 32,702 | $ 23,555 |
Accounts receivable, net of reserve | 51,121 | 71,418 | ||
Inventories | 36,379 | 40,531 | ||
Prepaid expenses and other | 71,753 | 45,647 | ||
Assets held for sale | 26,881 | |||
Current assets of discontinued operations | 64 | 8,097 | ||
Total current assets | 193,686 | 202,642 | ||
Property, plant and equipment, net | 368,824 | 443,563 | ||
Intercompany | 260,939 | 230,652 | ||
Other assets | 29,145 | 38,901 | ||
TOTAL ASSETS | 852,594 | 915,758 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 5,828 | 7,097 | ||
Accrued liabilities | 35,598 | 46,251 | ||
Current liabilities of discontinued operations | 59 | 3,377 | ||
Total current liabilities | 41,485 | 56,725 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | 45,062 | 33,546 | ||
Intercompany | 491,838 | 516,169 | ||
Other | 45,220 | 59,820 | ||
Noncurrent liabilities of discontinued operations | 3,890 | 4,720 | ||
Total noncurrent liabilities | 586,010 | 614,255 | ||
SHAREHOLDERS' EQUITY: | ||||
Additional paid-in capital | 549 | 349 | ||
Retained earnings | 224,550 | 244,429 | ||
Total shareholders' equity | 225,099 | 244,778 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 852,594 | $ 915,758 |
GUARANTOR AND NON-GUARANTOR F69
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net cash provided by (used in) operating activities | $ 753,597 | $ 1,428,574 | $ 1,129,082 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (257,169) | (1,131,445) | (951,536) |
Purchase of short-term investments | (57,276) | (45,607) | |
Proceeds from sale of short-term investments | 58,381 | ||
Proceeds from asset sales | 21,845 | 22,643 | 30,176 |
Proceeds from sale of investments | 49,205 | ||
Net cash used in investing activities | (234,219) | (1,154,409) | (872,155) |
FINANCING ACTIVITIES: | |||
Payments on long-term debt | (40,000) | (40,000) | (115,000) |
Proceeds from senior notes, net of discount | 497,125 | ||
Debt issuance costs | (1,111) | (5,474) | |
Proceeds on short-term debt | 1,002 | ||
Payments on short-term debt | (1,002) | ||
Repurchase of common stock | (59,654) | ||
Dividends paid | (300,152) | (298,367) | (264,386) |
Exercise of stock options, net of tax withholding | 1,040 | 2,650 | 23,250 |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,140) | (3,049) |
Excess tax benefit from stock-based compensation | 934 | 3,772 | 26,616 |
Net cash provided by (used in) financing activities | (343,201) | 94,912 | (332,569) |
Net increase (decrease) in cash and cash equivalents | 176,177 | 369,077 | (75,642) |
Cash and cash equivalents, beginning of period | 729,384 | 360,307 | 435,949 |
Cash and cash equivalents, end of period | 905,561 | 729,384 | 360,307 |
Guarantor/Parent | Reportable Legal Entities | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net cash provided by (used in) operating activities | 3,521 | 3,623 | (21,094) |
INVESTING ACTIVITIES: | |||
Capital expenditures | (16,119) | (24,818) | (17,786) |
Intercompany transfers | 16,119 | 24,818 | 17,786 |
Proceeds from asset sales | 9 | 1 | 2 |
Net cash used in investing activities | 9 | 1 | 2 |
FINANCING ACTIVITIES: | |||
Repurchase of common stock | (59,654) | ||
Intercompany transfers | 300,152 | 358,021 | 264,386 |
Dividends paid | (300,152) | (298,367) | (264,386) |
Exercise of stock options, net of tax withholding | 1,040 | 2,650 | 23,250 |
Tax withholdings related to net share settlements of restricted stock | (3,912) | (5,140) | (3,049) |
Excess tax benefit from stock-based compensation | (775) | 78 | (957) |
Net cash provided by (used in) financing activities | (3,647) | (2,412) | 19,244 |
Net increase (decrease) in cash and cash equivalents | (117) | 1,212 | (1,848) |
Cash and cash equivalents, beginning of period | (838) | (2,050) | (202) |
Cash and cash equivalents, end of period | (955) | (838) | (2,050) |
Issuer Subsidiary | Reportable Legal Entities | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net cash provided by (used in) operating activities | 776,364 | 1,379,707 | 1,050,609 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (235,078) | (1,064,288) | (840,341) |
Purchase of short-term investments | (57,276) | (45,607) | |
Proceeds from sale of short-term investments | 58,381 | ||
Intercompany transfers | (16,119) | (24,818) | (17,786) |
Proceeds from asset sales | 19,237 | 21,329 | 27,401 |
Proceeds from sale of investments | 49,205 | ||
Net cash used in investing activities | (230,855) | (1,113,384) | (781,521) |
FINANCING ACTIVITIES: | |||
Payments on long-term debt | (40,000) | (40,000) | (115,000) |
Proceeds from senior notes, net of discount | 497,125 | ||
Debt issuance costs | (1,111) | (5,474) | |
Intercompany transfers | (300,152) | (358,021) | (264,386) |
Excess tax benefit from stock-based compensation | 1,509 | 3,665 | 27,357 |
Net cash provided by (used in) financing activities | (339,754) | 97,295 | (352,029) |
Net increase (decrease) in cash and cash equivalents | 205,755 | 363,618 | (82,941) |
Cash and cash equivalents, beginning of period | 693,273 | 329,655 | 412,596 |
Cash and cash equivalents, end of period | 899,028 | 693,273 | 329,655 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net cash provided by (used in) operating activities | (26,288) | 45,244 | 99,567 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (5,972) | (42,339) | (93,409) |
Proceeds from asset sales | 2,599 | 1,313 | 2,773 |
Net cash used in investing activities | (3,373) | (41,026) | (90,636) |
FINANCING ACTIVITIES: | |||
Proceeds on short-term debt | 1,002 | ||
Payments on short-term debt | (1,002) | ||
Excess tax benefit from stock-based compensation | 200 | 29 | 216 |
Net cash provided by (used in) financing activities | 200 | 29 | 216 |
Net increase (decrease) in cash and cash equivalents | (29,461) | 4,247 | 9,147 |
Cash and cash equivalents, beginning of period | 36,949 | 32,702 | 23,555 |
Cash and cash equivalents, end of period | $ 7,488 | $ 36,949 | $ 32,702 |
SELECTED QUARTERLY FINANCIAL 70
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||
Operating revenues | $ 331,708 | $ 366,486 | $ 438,191 | $ 487,847 | $ 553,800 | $ 661,445 | $ 885,670 | $ 1,060,787 | $ 1,624,232 | $ 3,161,702 | $ 3,715,968 |
Operating income | (93,001) | (13,256) | 41,621 | 38,670 | (24,783) | 135,049 | 231,326 | 330,371 | (25,966) | 671,963 | 1,053,174 |
Income (loss) from continuing operations | (72,869) | (21,193) | 25,174 | 15,898 | (27,590) | 90,899 | 153,542 | 203,623 | (52,990) | 420,474 | 706,610 |
Net income (loss) | $ (72,835) | $ (21,200) | $ 21,205 | $ 16,002 | $ (27,596) | $ 90,872 | $ 153,543 | $ 203,608 | $ (56,828) | $ 420,427 | $ 706,563 |
Basic earnings per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $ (0.68) | $ (0.20) | $ 0.23 | $ 0.15 | $ (0.26) | $ 0.84 | $ 1.42 | $ 1.87 | $ (0.50) | $ 3.88 | $ 6.52 |
Net income (in dollars per share) | (0.68) | (0.20) | 0.19 | 0.15 | (0.26) | 0.84 | 1.42 | 1.87 | (0.54) | 3.88 | 6.52 |
Diluted earnings per common share: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | (0.68) | (0.20) | 0.23 | 0.15 | (0.26) | 0.83 | 1.41 | 1.86 | (0.50) | 3.85 | 6.44 |
Net income (in dollars per share) | $ (0.68) | $ (0.20) | $ 0.19 | $ 0.15 | $ (0.26) | $ 0.83 | $ 1.41 | $ 1.86 | $ (0.54) | $ 3.85 | $ 6.44 |
Increase in net loss due to change in accounting principle | $ 6,400 | ||||||||||
Increase in diluted loss per common share due to change in accounting principle | $ 0.06 | ||||||||||
Gain (loss) from the sale of assets, net | $ (1,400) | $ 1,500 | $ 2,900 | $ 1,900 | $ 1,100 | $ 1,800 | $ 2,600 | ||||
Gain (loss) from the sale of assets, per diluted share (in dollars per share) | $ (0.01) | $ 0.01 | $ 0.03 | $ 0.02 | $ 0.01 | $ 0.02 | $ 0.02 | ||||
Loss related to currency exchange losses, net of tax | $ 5,400 | ||||||||||
Loss related to currency exchange losses, per diluted share (in dollars per share) | $ 0.05 | ||||||||||
After-tax impairment charge | $ 2,900 | ||||||||||
After-tax impairment charge, per diluted share (in dollars per share) | $ 0.03 | ||||||||||
Loss from an other-than-temporary impairment of available-for-sale securities | $ 15,900 | ||||||||||
Loss from an other-than-temporary impairment of available-for-sale securities, per diluted share (in dollars per share) | $ 0.15 | ||||||||||
Loss from an litigation settlement, net of tax | $ 12,000 | ||||||||||
Loss from an litigation settlement, per diluted share (in dollars per share) | $ 0.11 | ||||||||||
After-tax abandonment charge | $ 6,700 | ||||||||||
After-tax abandonment charge, per diluted share (in dollars per share) | $ 0.06 |